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HomeMy WebLinkAbout2024.12.02 Council Meeting Packet AGENDA City Council Regular Meeting 7:00 PM - Monday, December 2, 2024 Pasco City Hall, Council Chambers & Microsoft Teams Webinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco-wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this meeting. To listen to the meeting via phone, call 1-332-249-0718 and use access code 105 547 324#. City Council meetings are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Councilmembers, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. 6 - 23 (a) Approval of Meeting Minutes for November 18th and November 25th To approve the minutes of the Pasco City Council Regular Meeting and Regular Workshop held on November 18, 2024 and November 25, 2024 respectively. 24 - 25 (b) Bills and Communications - 2024 Approving Claims in the Total Page 1 of 464 Amount of $6,276,599.78 To approve claims in the total amount of $6,276,599.78 ($4,960,022.26 in Check Nos. 268064 - 268345; $66,395.54 in Electronic Transfer Nos. 848374 - 848539, 848552, 848614; $18,290.43 in Check Nos. 54850 - 54855; $1,231,891.55 in Electronic Transfer Nos. 30217019 - 30217677). 26 - 33 (c) Resolution No. 4534 - Project Acceptance for Argent Rd Widening Phase 3 To approve Resolution No. 4534, accepting work performed by Apollo, Inc., under contract for the Argent Road Widening Phase 3 Project. 34 - 40 (d) Resolution No. 4535 - Project Acceptance for Court Street Overlay Project To approve Resolution No. 4535, accepting work performed by Central Washington Asphalt, Inc., under contract for the Court Street Overlay Project. 41 - 53 (e) Resolution No. 4536 - Acceptance of Work for New Pasco Animal Control Shelter MOTION: I Move to approve Resolution No. 4536, accepting work performed by G2 Commercial Construction Inc. of Kennewick Washington, under contract for the new Pasco Animal Control Shelter Project. 54 - 69 (f) Resolution No. 4537 - Bid Award for Martin Luther King Jr. Community Center Remodel and Expansion Phase 1 Construction Project To approve Resolution No. 4537 awarding Bid No. 21314 for the Martin Luther King Jr. Renovation and Expansion Project Phase 1 project to Booth and Sons Construction, Inc. of Kennewick, Washington, and further, authorize the City Manager to execute the contract documents, allowing for all necessary budget adjustments. 70 - 84 (g) Resolution No. 4538 - I-182/Broadmoor Blvd. Interchange Project Change Order No. 9 Approval To approve Resolution No. 4538, authorizing the City Manager to execute Change Order No. 9 with Nelson Construction Corp. for the I- 182 and Broadmoor Boulevard Interchange. 85 - 127 (h) Resolution No. 4539 - West Pasco Water Treatment Plant Phases 3 & 4 Drinking Water State Revolving Fund Additional Loan Acceptance To approve Resolution No. 4539, approving and authorizing the City Page 2 of 464 Manager to execute and deliver the Drinking Water State Revolving Fund Loan Contract No. DWL29708-0 with the Washington State Department of Health for the West Pasco Water Treatment Plant Phases 3 and 4 Project. 128 - 157 (i) Resolution No. 4540 - "Amtrak" National Railroad Passenger Corporation - Intermodal Transportation Facility Lease Agreement To approve Resolution No. 4540, authorizing the City Manager to execute a 10-year Lease agreement between National Railroad Passenger Corporation and the City of Pasco for operating space at the Pasco Intermodal Transportation facility. 158 - 259 (j) Resolution No. 4541 - Basin Disposal Inc. 2025 Proposed Rate Increase MOTION: I move to approve Resolution No. 4541, approving a rate increase for Solid Waste Collection and Disposal services by Basin Disposal, Inc. 260 (k) Cancellation of December 16 and 23, 2024, Regularly Scheduled Council Meeting and Workshop To approve the cancellation of the December 16th and 23rd Council Regular Meeting and Workshop respectively. (RC) MOTION: I move to approve the Consent Agenda as read. 5. PROCLAMATIONS AND ACKNOWLEDGEMENTS 6. PUBLIC COMMENTS - The public may address Council on any items unless it relates to a scheduled Public Hearing. This item is provided to allow the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. Lastly, when called upon, please state your name and city or county residency into the microphone before providing your comments. 7. REPORTS FROM COMMITTEES AND/OR OFFICERS (a) Verbal Reports from Councilmembers Page 3 of 464 8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 261 - 268 (a) Public Meeting & Resolution No. 4542 - Accepting a Notice of Intent to Commence Annexation Wright and Big Sky Developers Glacier Park Convention Drive 10% Annexation Petition (5 minutes) CONDUCT A PUBLIC MEETING MOTION: I move to approve Resolution No. 4542, accepting a notice of intent to commence annexation proceedings for the Glacier Park Convention Drive Annexation, providing a determination on the boundary to be annexed, and whether simultaneous zoning and the assumption of bonded indebtedness will be required. 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 269 - 277 (a) Ordinances Nos. 4746 & 4747 - 2025 Administrative/Professional Wage and Management Salary Plans (5 minutes) MOTION: I move to adopt Ordinance No. 4746, concerning the wages for certain administrate/professional, non-management personnel for calendar year 2025. -AND- MOTION: I move to adopt Ordinance No. 4747, concerning the salaries for management position for the calendar year 2025. 278 - 283 (b) Ordinance No. 4748 - 2023-2024 Operating Budget Supplement (5 minutes) MOTION: I move to adopt Ordinance No. 4748, amending the 2023- 2024 Biennial Operating Budget by providing supplement thereto; by appropriating revenue received in excess of estimated revenues for the current biennium and by providing transfers and adjustment authority and, further, authorize publication by title only. 284 - 292 (c) Resolution No. 4543 - Declaring the City of Pasco 2025 Legislative Priorities (5 minutes) MOTION: I move to approve Resolution No. 4543, declaring the City of Pasco 2025 Legislative Priorities. 10. UNFINISHED BUSINESS 293 - 333 (a) Amending PMC Title 25 Zoning Related to Overnight Truck Page 4 of 464 Habitation (10 minutes) 11. NEW BUSINESS 334 - 407 (a) Update - Amending Sections of the Pasco Municipal Code Titles 13 and 3 Related to Pasco Water Reuse Facility (PWRF) (15 Minutes) Presentation from Deputy City Manager R. Sigdel, Public Works Director M. Serra and Legal Counsel S. DiJulio regarding the next actions related to the Pasco Water Reuse Facility (PWRF). 408 - 440 (b) Presentation of Proposed Changes to the Rental License Program (10 minutes) 441 - 462 (c) Purchase of Water Rights (5 minutes) 12. MISCELLANEOUS DISCUSSION 13. EXECUTIVE SESSION 14. ADJOURNMENT 15. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 463 - 464 (b) Adopted Council Goals (Reference Only) (c) 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 City Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 5 of 464 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Debra Barham, City Clerk City Manager SUBJECT: Approval of Meeting Minutes for November 18th and November 25th I. REFERENCE(S): 11.18.2024 and 11.25.2024 Draft Council Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Regular Meeting and Regular Workshop held on November 18, 2024 and November 25, 2024 respectively. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 464 MINUTES City Council Regular Meeting 7:00 PM - Monday, November 18, 2024 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:00 PM by Pete Serrano, Mayor. ROLL CALL Councilmembers present: Pete Serrano, David Milne, Blanche Barajas, Melissa Blasdel, Charles Grimm, Peter Harpster, and Leo Perales Councilmembers attending remotely: Councilmembers absent: None Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Kevin Crowley, Fire Chief; Eric Ferguson, City Attorney; Jacob Gonzalez, Community & Economic Development Director; Jesse Rice, Parks & Recreation Director; Ken Roske, Police Chief; Maria Serra, Public Works Director; and Debby Barham, City Clerk The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA Approval of Meeting Minutes for November 4th and November 12th To approve the minutes of the Pasco City Council Regular Meeting held on November 4, 2024 and a Special Meeting and Regular Workshop held on November 12, 2024. Bills and Communications - Approving Claims in the Total Amount of $4,173,882.52 To approve claims in the total amount of $4,173,882.52 ($2,912,608.37 in Check Nos. 267785 - 268063; $16,921.62 in Check Nos. 54843 - 54849; $1,244,352.53 Page 1 of 10Page 7 of 464 in Electronic Transfer Nos. 30216355 - 30217018). Resolution No. 4523- Change Order No. 10 for Wastewater Treatment Plant Phase 1 Construction Contract with Clearwater To approve Resolution No. 4523, authorizing the City Manager to execute Change Order No. 10 with Clearwater Construction & Management, LLC for the Wastewater Treatment Plant Phase 1 Improvements Project. Resolution No. 4524 - Project Acceptance for East Urban Growth Area Expansion Sewer Local Improvement District No. 152 Phase 3 Project. To approve Resolution No. 4524, accepting work performed by DW Excavating, Inc. under contract for the East Urban Growth Area Expansion Sewer Local Improvement District No. 152: Phase 3 Project. Resolution No. 4525 - Project Acceptance for East Urban Growth Area Expansion Sewer Local Improvement District No. 152 Phase 4 Project To approve Resolution No. 4525, accepting work performed by Apollo, Inc. under contract for the East Urban Growth Area Expansion Sewer Local Improvement District No. 152: Phase 4 Project. Resolution No. 4526 - Sole Source Purchase Request of LifePak 35 Defibrillators To approve Resolution No. 4526 - waiving the competitive bidding requirements and approving the purchase of Lifepak 35 Cardiac Defibrillators from Stryker Sales, LLC. Resolutions Nos. 4527, 4528, 4529, & 4530 - Accept Purchase Agreements for work to update GESA Stadium to Major League Baseball Standards To approve Resolution No. 4527, authorizing the City Manager to execute a purchase agreement with Musco Sports Lighting, LLC for the purchase and installation of updated field lighting at the Gesa Stadium. and To approve Resolution No. 4528, authorizing the City Manager to approve the quote with Sportsfield Specialties for the purchase and installation of a new backstop netting system at the Gesa Stadium. and To approve Resolution No. 4529, authorizing the City Manager to approve the quote with Sportsfield Specialties for the purchase and installation of a new Major League Baseball regulation size outfield batters eye, and new foul poles at the Gesa Stadium. Page 2 of 10Page 8 of 464 and To approve Resolution No. 4530, authorizing the City Manager to approve the quote with Sportsfield Specialties for the purchase and installation of a new outfield fence system at the Gesa Stadium. Resolution No. 4533 - Office Closure to the Public for Christmas Eve Day To approve Resolution No. 4533, establishing an Office Closure to the Public for Christmas Eve Day on December 24, 2024. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel (RC) MOTION: I move to approve the Consent Agenda as read. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales PUBLIC COMMENTS Maria Rango, business owner, expressed thanks for attending the opening of her restaurant. Mary Mahoney, Pasco resident, commented on the Tri Cities Animal Control Authority and shelter topics. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Mr. Grimm reported on the Benton Franklin Council of Governments (BFCOG) meeting, the Ben Franklin Transit Board meeting and Washington State Audit close out meeting that he attended. Mr. Perales announced that he visited Pie Sharks and Tri Cities Afghan Food (businesses housed in the Pasco Specialty Kitchen) and he attended the Chiawana High School football game. Mayor Pro Tem Milne commented on the new Mexa Restaurant, the Tri Cities Afghan Food and State audit exit meeting. Mayor Serrano reported on the Mexa restaurant grand opening and dining at the Tri Cities Afghan Food site. He met with the US Department of Housing and Urban Development (HUD) representatives recently and participated in the Audit Page 3 of 10Page 9 of 464 exit meeting. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO Second Public Hearing for the 2025-2026 Operating & Capital Projects Budgets Ms. Buckley provided a brief overview of the budget preparation. She stated this was the second of two public hearings before Council may vote on the 2025- 20256 Operating & Capital Projects Budgets. Council, Ms. Buckley and Mr. Lincoln continued discussion of the proposed biennial budgets. Mayor Serrano declared the Public Hearing open to consider the proposed 2025- 2026 Biennial Budgets. Following three calls for comments, and there being none, Mayor Serrano declared the Public Hearing closed. Council reviewed and the items that were removed from the budget and came to consensus to add the following items back into the budget included:  Gate service related to Chiawana Park access  General cleaning and garbage disposal in Downtown  Domestic violence advocacy program  Citizen Academy program  Abandon RV impound program Council also asked that the Police Chief provide the Police Departments preference of budgetary additions. Public Hearing and Ordinance No. 4737 - Valdivia Annexation (ANX 2024- 001) Mr. Raymond provided a brief report related to the proposed annexation of Valdivia property. Mayor Serrano declared the Public Hearing open to consider the proposed annexation. Jeff Daniels, Franklin County resident, expressed concern of the proposed annexation stating that safety concerns about exiting his property and confusion of EMS services. Amanda Daniels, Franklin County resident, expressed concern of the proposed annexation stating traffic speed concerns, as well as exiting her property. Page 4 of 10Page 10 of 464 Kyle Daniels, Franklin County resident, expressed concern related to the changes of the roadway striping. Following three calls for comments, and there being none, Mayor Serrano declared the Public Hearing closed. Council briefly discussed the various aspects of area surrounding the proposed property requesting to be annexed into the City. ROLL CALL VOTE MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4737, relating to annexation and annexing certain real property to the City of Pasco, and further, authorize publication by summary only. RESULT: Motion carried. 5-2 AYES: Mayor Serrano, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, and Councilmember Harpster NAYS: Mayor Pro Tem Milne and Councilmember Perales Public Hearing and Ordinance No. 4738 - Shumway/Taylor Flats Road Annexation (ANX 2024-002) Mr. Harpster recused himself from this time and left Council Chambers. Ms. Raymond provided a brief report related to the proposed annexation. Mayor Serrano declared the Public Hearing open to consider the proposed Shumway annexation. Following three calls for comments, and there being none, Mayor Serrano declared the Public Hearing closed. ROLL CALL VOTE MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4738, relating to annexation and annexing certain real property to the City of Pasco, and further, authorize publication by summary only. RESULT: Motion carried. 5-1 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, and Councilmember Grimm NAYS: Councilmember Perales Page 5 of 10Page 11 of 464 ABSENT: Councilmember Harpster Mr. Harpster returned to Council Chambers. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Ordinance No. 4739 - Valdivia - Zoning Determination of Annexed Property (ZD 2024-001) Mayor Serrano announced that the Valdivia property zoning determination was a quasi-judicial action and asked Mr. Ferguson to explain the procedure for quasi- judicial items. Mr. Ferguson read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. With no response from the Councilmembers, he asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. Raymond provided a brief report related to assigning zoning to the property for this recently approved annexation. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4739, assigning C-1 Retail Business District to the Valdivia annexation area, as recommended by the Hearing Examiner and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Ordinance No. 4740 - Shumway - Zoning Determination of Annexed Property (ZD 2024-002) Mr. Harpster recused himself from this item and left the Council Chambers. Mayor Serrano announced that the Shumway property zoning determination was a quasi-judicial action and asked Mr. Ferguson to explain the procedure for quasi- judicial items. Mr. Ferguson read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. With no response from the Councilmembers, Page 6 of 10Page 12 of 464 he asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. Raymond provided a brief report related to assigning zoning to the property for this recently approved annexation. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4740, assigning C-3 General Business District to the Shumway annexation area, as recommended by the Hearing Examiner and, further, authorize publication by summary only. RESULT: Motion carried unanimously 6-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, and Councilmember Perales ABSENT: Councilmember Harpster Mr. Harpster returned to Council Chambers. Ordinances Nos. 4741 & 4742 - Creation of Tax Increment Financing (TIF) Funds in the Pasco Municipal Code Chapters 3.245 and 3.250 Ms. Buckley explained the purpose of creating a new TIF Bond Debt Service Fund and TIF Capital Construction Fund in the Pasco Municipal Code (PMC) under Title 3. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Barajas to adopt Ordinance No. 4741, establishing a debt service fund for the Tax Increment Financing (TIF) Bond Debt Service Fund and creating a new Chapter 3.245 “TIF Bond Debt Service Fund” in the Pasco Municipal Code and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Barajas to adopt Ordinance No. 4742, establishing a capital improvement fund for the Broadmoor Tax Increment Financing Area and creating a new Chapter 3.250, “TIF Capital Construction Fund” in the Pasco Municipal Code. and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Page 7 of 10Page 13 of 464 Perales RECESS Mayor Serrano called a five (5) minute recess at 8:30 PM. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS CONTINUED Ordinance No. 4743 - Creation of Development Fee Fund in the Pasco Municipal Code Chapter 3.255 Ms. Buckley explained the purpose of creating a new Development Fee fund in the Pasco Municipal Code (PMC) under Title 3. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4743, establishing an enterprise fund for revenues and expenditures related to building permitting and inspections activities and creating a new Chapter 3.255, “Development Fee Fund” in the Pasco Municipal Code and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Ordinance No. 4744 - Creation of Public Safety Special Revenue Fund in the Pasco Municipal Code Chapter 3.260 Ms. Buckley explained the purpose of creating a new Public Safety Tax fund in the Pasco Municipal Code (PMC) under Title 3. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4744, establishing a special revenue fund for the public safety tax fund and creating a new Chapter 3.260, “Public Safety Tax Fund”, in the Pasco Municipal Code and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Ordinance No. 4745 - Creation of Affordable Housing Revenue Special Fund in Pasco Municipal Code Chapter 3.265 Ms. Buckley explained the purpose of creating a new Affordable Housing Tax fund in the Pasco Municipal Code (PMC) under Title 3. Page 8 of 10Page 14 of 464 MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Barajas to adopt Ordinance No. 4745, establishing a special revenue fund for the affordable housing tax fund and creating a new Chapter 3.265, “Affordable Housing Tax Fund” in the Pasco Municipal Code and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Resolution No. 4531 - Setting a Date to Consider a Notice of Intent to Commence Annexation Proceedings for Wright and Big Sky Developers Glacier Park Convention Drive Annexation (ANX 2024-003) Mr. Harpster recused himself from this item and left the Council Chambers. Mr, Raymond reported on the request to annex property into the City of Pasco and this action will set a public meeting date to start the annexation proceedings. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to approve Resolution No. 4531, setting 7:00 PM, December 2, 2024, as the time and date for a public meeting with the initiators to consider the Wright and Big Sky Developers Glacier Park Convention Drive Notice of Intent to commence annexation of property located northwest of the intersection of Burns and Convention Drive and South of Kau Trail Road. RESULT: Motion carried unanimously 6-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, and Councilmember Perales ABSENT: Councilmember Harpster Mr. Harpster returned to Council Chambers. Resolution No.4532 - Approval of Washington State Department of Revenue Agreement for Tourism Promotion Area Fees Collection Ms. Pashon reported on the proposed agreement for the collection of Tourism Promotion Area (TPA) fees and the grants provided with the collected funds for economic development within the City. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to approve Resolution No. 4532, authorizing the City Manager to sign and execute an agreement for the state administration of Tourism Promotion Area fees between the City of Pasco and the Washington State Department of Revenue. Page 9 of 10Page 15 of 464 RESULT: Motion carried unanimously 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales MISCELLANEOUS DISCUSSION Mr. Lincoln announced the State of the Cities annual event was scheduled for Wednesday, November 20, 2024. Ms. Buckley reported on the Accountability Audit conducted by the Washington State Auditor's Office. Ms. Blasdel commented on number of wreaths purchased for the Wreaths Across America effort. Mr. Harpster asked for an update on the Broadmoor and I-182 Interchange project and Sylvester Street Improvements project. Ms. Serra stated that both should be completed by the end of the year. He also asked for status on the Darigold facility. Mr. Lincoln stated that he would look into it and get back with Mr. Harpster. ADJOURNMENT There being no further business, the meeting was adjourned at 8:52 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: Pete Serrano, Mayor Debra Barham, City Clerk Page 10 of 10Page 16 of 464 MINUTES City Council Workshop Meeting 7:00 PM - Monday, November 25, 2024 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:00 PM by Pete Serrano, Mayor. ROLL CALL Councilmembers present: Pete Serrano, David Milne, Blanche Barajas, Melissa Blasdel, Charles Grimm, Peter Harpster, and Leo Perales Councilmembers attending remotely: Blanche Barajas Councilmembers absent: None Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Eric Ferguson, City Attorney; Jacob Gonzalez, Land Use & Planning Advisor; Jesse Rice, Parks & Recreation Director; Ken Roske, Police Chief; Maria Serra, Public Works Director; and Debby Barham, City Clerk VERBAL REPORTS FROM COUNCILMEMBERS Mr. Harpster reported on the ribbon cutting event for Pasco's new water storage tower. He also attended the State of the Cities event and Hilton's Home to Suites ribbon cutting event. Ms. Blasdel provided a status of the sale of wreaths for Wreaths Across America. Mr. Perales discussed the recent Chiawana Highschool football win. Mayor Serrano reported on Tri-Cities National Park meeting he recently attended. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC COMMENT Page 1 of 7Page 17 of 464 Update: Ordinance - Amending Pasco Municipal Code Title 23 Related to the State Environmental Policy Act (SEPA) Thresholds Ms. Sigdel introduced Jacob Gonzalez, Land Use & Planning Advisor and Bob Sterbank with Foster Garvey. Mr. Gonzalez provided a brief report on the SEPA thresholds and the proposed amendments to the Pasco Municipal Code (PMC) related to Title 23 Environmental Impact. Council, staff and Mr. Sterbank discussed the option. Councilmembers Perales & Grimm, and Mayor Serrano preferred the phased approach with first reviewing the residential standards and issue one required 60- day notice for both residential and non-residential exemptions. Mayor Serrano called for public comments. Ms. Francik, Pasco resident and Basin Disposal, Inc. (BDI) staff member, stated the BDI receives SEPA notices and asked when is it the best time for BDI to provide their input before plats are approved. She stated that some development sites prohibits BDI trucks from providing service in neighborhoods due to the configuration of the plat. Mr. Padvorac, Padvorac Consulting, expressed support for making the SEPA thresholds consistent with the neighboring cities. He also commented on some overlap of SEPA between residential and non-residential property. Presentation of 2025-2026 Biennial Budget Ms. Buckley explained the financial impacts to the proposed Biennial Budget based on Council's recommendations to continue specific programs and activities from their last meeting. After Ms. Buckley's presentation detailing the programs with the funding amounts that Council was considering to add back into the budget, Council and staff (Ms. Buckley, Mr. Lincoln and Police Chief Roske) discussed those programs. A majority of Council agreed to hold only one Citizens Academy per year. A majority of Council also concurred that more discussion was needed for the proposed police program as some Councilmembers suggested cutting the program in half and/or consider a phased approach to the program during the 2025-2026 Biennial Budget. Ms. Sigdel indicated that a budget amendment could be brought back in the new year once the parameters were agreed to. Council and staff continued discussion related to increasing revenues and determination of the City's various fees schedule. Page 2 of 7Page 18 of 464 Mayor Serrano called for public comments three (3) times and no one came forward to speak. 2025 Administrative/Professional Wage and Management Salary Plans Mr. Lincoln presented options for Council's consideration related to the Cost of Living Allowance (COLA) for all non-represented staff and management staff for 2025 and asked for their preference on the increase of no increase, two-percent or three-percent increases. After a brief Council discussion, a majority of Council supported the 3% COLA for both non-representative staff and management staff. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - Basin Disposal Inc. 2025 Proposed Rate Increase Ms. Sigdel provided a brief report on the proposed 2025 rate increase for solid waste services with in the City. Ms. Francik commented on the process of assisting income limited BDI customers. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Proposed 2023-2024 Budget Supplement Ms. Buckley explained the proposed supplement reflects increases in revenues and expenses of $8.811M and $9.583M respectively. Net expense increase is $772K and primarily the result of original budget in CDBG represented below expected grant awards. Council and staff briefly discussed the proposed amended 2023-2024 Operating Budget. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - Project Acceptance for Transmission Main – West Pasco Water Treatment Plant (WPWTP) to Zone 3 Project Ms. Serra provided a brief report regarding the Transmission Main project noting that it will come back to Council for final acceptance of the project. Mayor Serrano called for public comments three (3) times and no one came Page 3 of 7Page 19 of 464 forward to speak. Resolution - Project Acceptance for Argent Rd Widening Phase 3 Ms. Serra provided a brief report regarding the Argent Rd Widening Phase 3 project noting that it will come back to Council for final acceptance of the project. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - Project Acceptance for Court Street Overlay Project Ms. Serra provided a brief report regarding the Court Street Overlay project noting that it will come back to Council for final acceptance of the project. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - Acceptance of Work for New Pasco Animal Control Shelter Ms. Serra provided a brief report regarding the new Pasco Animal Control Shelter project noting that it will come back to Council for final acceptance of the project. Mayor Serrano called for public comments. Mary Mahoney, Pasco resident, commented on the Tri-Cities Animal Control Authority and new facility. Resolution - Bid Award for Martin Luther King Jr. Community Center Remodel and Expansion Phase 1 Construction Project Ms. Serra provided a brief overview of the bid process and the awardee for the Martin Luther King Jr (MLK) Community Center remodel. Mayor Serrano called for public comments. Mary Mahoney, Pasco resident, commented on the MLK Community Center and the City's and the Pasco Public Facilities District's budgets. Resolution - I-182/Broadmoor Blvd. Interchange Project Change Order No. 9 Approval Ms. Serra explained the need for the Change Order No. 9 to the I-182/Broadmoor Blvd. Interchange project. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Page 4 of 7Page 20 of 464 Resolution - West Pasco Water Treatment Plant Phases 3 & 4 Drinking Water State Revolving Fund Additional Loan Acceptance Ms. Serra reported that due to availability of remaining Bipartisan Infrastructure Law (BIL) funds and the City’s ranking on the 2023 DWSRF Project Priority List, the Washington State Department of Health (DOH) awarded an additional $1.17 million loan beyond the initial $12 million previously awarded. Both the initial loan and the additional award funds from DOH will be used for full construction of the expanded membrane filtration system, cyanotoxin treatment, service pumps, and backwash recovery system. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - "Amtrak" National Railroad Passenger Corporation - Intermodal Transportation Facility Lease Agreement Mr. Rice provided a brief report on the proposed ten-year lease agreement with Amtrak. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Lodging Tax Advisory Committee (LTAC) Recommendations for 2025 Ms. Pashon provided a brief report on the LTAC's funding recommendations for 2025. Council, Ms. Pashon and Mr. Ferguson discussed the funding recommendations, including additional details of some of the applicants and options/process available to Council to adjust the funding amounts. Mr. Harpster suggested removing the Swim the Snake and Charro events and reallocate the funds to other applications. Mr. Perales agreed with Mr. Harpster and recommended additional funding be given to the NWAC Basketball Championship, CBC Volleyball Championship, Juneteenth and Water Folly events. Ms. Blasdel noted the makeup of the LTAC included two representatives of businesses that collect the lodging tax and two representatives that are involved in activities authorized to be funded by the lodging tax along with and elected official, the Pasco Mayor, as the Chair of the LTAC. She noted that the LTAC deliberated on providing funding to those that can bring dollars back into the community, also referred to as "Heads in Beds." She stated that all of the events will place heads in beds in Pasco. Ms. Barajas recommended removing the COPA Symphony funding and reallocate additional funding to the Juneteenth event. Page 5 of 7Page 21 of 464 Council determined that more discussion was needed and this item will be placed on the next workshop. Mayor Serrano called for public comments. Mr. Granbois, downtown business owner, commented on the LTAC funding for the downtown murals funding. He also commented on the COPA Symphony and how it provides benefits to the downtown businesses. MISCELLANEOUS COUNCIL DISCUSSION Mr. Lincoln announced that the City's public facing offices will close to the public at 2:00 PM on Thanksgiving eve, November 27th. He also announced a need to hold a Special Meeting on December 9th before the Council Workshop. Lastly, he asked for Council to consider cancelling the December 16th and 23rd the regularly scheduled Council meeting and workshop. Council concurred with the meeting schedule for December 2024. Mr. Harpster asked how many dogs and cats have been sent to Washington State University (WSU) for research purposes and Mr. Rice stated no animals have been transferred to WSU for research purposes. Councilmembers expressed thanks for various reasons as they enter into the Thanksgiving Holiday weekend. RECESS Mayor Serrano called a five-minute recess at 9:40 PM. EXECUTIVE SESSION Council adjourned into Executive Session at 9:45 PM for 30 minutes returning at 10:15 PM to consider site selection or acquisition of real estate purchase or lease if likelihood that disclosure would increase price per RCW 42.30.110(1)(b) and to discuss with legal counsel about current or potential litigation per RCW 42.30.110(1)(i) with the City Manager, Deputy City Manager, City Attorney and Land Use and Zoning Advisor. Mr. Gonzales left Executive Session at 10:05 PM. At 10:15 PM Mayor Serrano announced that the Executive Session would continue for another 15 minutes or until 10:30 PM. At 10:30 PM Mayor Serrano announced that the Executive Session would Page 6 of 7Page 22 of 464 continue for another 5 minutes or until 10:35 PM. At 10:35 PM Mayor Serrano announced that the Executive Session would continue for another 5 minutes or until 10:40 PM. Mayor Serrano called the meeting back to order at 10:40 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 10:40 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: Pete Serrano, Mayor Debra Barham, City Clerk Page 7 of 7Page 23 of 464 AGENDA REPORT FOR: City Council December 2, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Darcy Buckley, Finance Director Finance SUBJECT: Bills and Communications - 2024 Approving Claims in the Total Amount of $6,276,599.78 I. REFERENCE(S): Accounts Payable 11.14.24 to 11.26.24 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $6,276,599.78 ($4,960,022.26 in Check Nos. 268064 - 268345; $66,395.54 in Electronic Transfer Nos. 848374 - 848539, 54855; - 54850 Nos. $18,290.43 in 848614; 848552, Check $1,231,891.55 in Electronic Transfer Nos. 30217019 - 30217677). III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: There are two categories of accounts receivable write-offs: 1. Direct write-offs are small in value or, in the case of Ambulance Fund, reflect a reduction of fees related to a discount required by DSHS and Medicare. These direct write-offs are not sent to collection. 2. Write-offs referred to collection and have been in arrears for a given number of days and exceed minimum values that move them out of the direct write-off category. Please see the summary page attached to this agenda item for details. V. DISCUSSION: Page 24 of 464 REPORTING PERIOD: December 2, 2024 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 268064 - 268345 54850 - 54855 Total Check Amount $4,960,022.26 $18,290.43 Total Checks 4,978,312.69$ Electronic Transfer Numbers 848374 - 848539 30217019 - 30217677 848552 - 848614 Total EFT Amount $66,395.54 $1,231,891.55 $0.00 $0.00 Total EFTs 1,298,287.09$ Grand Total 6,276,599.78$ Councilmember B 100 718,757.07 110 49,552.89 130 4,845.96 140 1,729.94 145 3,094.44 150 30,147.18 160 8,387.20 165 2,819.99 168 43,899.07 170 2,230.60 180 5,928.82 185 550.10 189 951.18 190 696.68 194 13,519.67 195 1,802.89 367 2,193,173.97 410 1,886,166.02 510 49,669.60 515 1,914.61 516 44.25 520 6,535.67 690 1,250,181.98 GRAND TOTAL ALL FUNDS:6,276,599.78$ PAYROLL CLEARING EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT BUSINESS MEDICAL/ DENTAL/ VISION INSURANCE ECONOMIC DEVELOPMENT STADIUM/ CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION UTILITY, WATER/ SEWER RIVERSHORE TRAIL & MARINA MAIN LITTER ABATEMENT REVOLVING ABATEMENT CEMETERY ATHLETIC PROGRAMS ANIMAL CONTROL SENIOR CENTER OPERATING MULTI-MODAL FACILITY C.D. BLOCK GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE Councilmember A SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET STREET OVERLAY City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such Adam Lincoln, City Manager Griselda Garcia, Finance Manager We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 2nd day of December, 2024 that the merchandise or services hereinafter specified have been received and are approved for payment: November 14 to November 26, 2024 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved The City Council Page 25 of 464 AGENDA REPORT FOR: City Council November 19, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Resolution No. 4534 - Project Acceptance for Argent Rd Widening Phase 3 I. REFERENCE(S): Resolution Power Point Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4534, accepting work performed by Apollo, Inc., under contract for the Argent Road Widening Phase 3 Project. III. FISCAL IMPACT: Engineer's Estimate $ 3,970,251.62 Bid Award $ 3,472,643.57 Project Closeout Reconciliation $ (23,387.54) Final Construction Cost $ 3,449,256.03 Funding for this project was provided via STBG, STP, and HIP Grants and with City of Pasco Arterial Funds. IV. HISTORY AND FACTS BRIEF: The City of Pasco (City), the Port of Pasco (Port), and Columbia Basin College (CBC) have worked together over the past five years to provide necessary improvements to the Argent Road corridor from 20th Avenue to Road 36. The Argent Road Improvement project was divided into three phases to expedite phase construction of priority segments. The first constructed improvements from 20th Avenue to Saraceno Way/Varney Lane. The second phase constructed improvements at the Road 36 intersection. The final Phase 3 constructed improvements from Saraceno Way/Varney Lane to Road 36, Page 26 of 464 filling the gap between Phases 1 & 2. The Phase 3 improvements widened the roadway to four lanes, constructed new curb/gutter and sidewalk, pedestrian improvements, signage and striping, and utility work including stormwater facilities, irrigation, and illumination to this critical transportation corridor. The Argent Road Widening Phase 3 project was advertised on March 17, 2023, with a public bid opening held on April 6, 2023. Substantial completion was reached on June 07, 2024. The project closeout reconciliation amount includes bid items not completely used and reflects work completed under budget. Bid items not completely used included crushed surfacing base and top coarse, trench backfill, silt fence, hot mix asphalt (HMA), longitudinal joint sealer, and multiple plastic stripping bid items. The closeout reconciliation amount also accounts for not using the entire force account bid item. 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 receipts 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: This item was presented to Council at the November 25, 2024, Workshop Meeting. City Staff recommends approval of the Resolution for the acceptance of the Argent Rd Widening Phase 3 Project, as constructed by Apollo, Inc. Page 27 of 464 Resolution – Accept Argent Rd Widening PH 3 Project - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY APOLLO, INC., UNDER CONTRACT FOR THE ARGENT RD WIDENING PHASE 3 PROJECT. WHEREAS, the work performed by Apollo, Inc., under contract for Project No. 21 010 has been examined by City of Pasco (City) Staff and been found to be in apparent compliance with the applicable project’s specifications and drawings; and WHEREAS, it is the City Staff recommendation that the City 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. 21 010 as being completed in apparent compliance with the project’s specifications and drawings. Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance. Be It Further Resolved, that the final payment of retainage being withheld, pursuant to 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 the Public Works Director and Finance Director. 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 28 of 464 Argent Rd Widening Phase 3 Project Acceptance Pa g e 2 9 o f 4 6 4 Argent Rd Widening Phase 3 Pa g e 3 0 o f 4 6 4 Argent Rd Widening Phase 3 Pa g e 3 1 o f 4 6 4 CONSTRUCTION COSTS Engineer’s Estimate $3,970,251.62 Bid Award $3,472,643.57 Project Closeout Reconciliation $(23,387.54) Final Construction Contract Total $3,449,256.03 Argent Rd Widening Phase 3 Description of Contract Changes Amount Bid Item Reconciliation $(23,387.54) Pa g e 3 2 o f 4 6 4 Questions?Pa g e 3 3 o f 4 6 4 AGENDA REPORT FOR: City Council November 19, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Resolution No. 4535 - Project Acceptance for Court Street Overlay Project I. REFERENCE(S): Resolution Power Point Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4535, accepting work performed by Central Washington Asphalt, Inc., under contract for the Court Street Overlay Project. III. FISCAL IMPACT: Engineer's Estimate $ 2,994,620.00 Awarded Construction Contract Amount $ 2,885,000.00 Project Change Orders $ 52,528.00 Project Closeout Reconciliation $ 28,671.60 Final Construction Cost $2,966,199.60 The project closeout reconciliation amount includes bid items that exceeded planned quantities and others that were partially used. These items include Hot Mix Asphalt (HMA), Planing Bituminous Pavement, Crack Sealing, and HMA for Pavement Repair, Erosion/Water Pollution Control, Inlet Protection, Minor Change, and force account bid items. Funding for this project was provided by a NHS Asset Management Grant and City of Pasco. IV. HISTORY AND FACTS BRIEF: Page 34 of 464 The approved 2022-2028 CIP identified two overlay projects within the Court Street corridor:  Court Street Overlay – Road 44 to road 68  Court Street Overlay – US HWY 395 to 20th Ave At that time the City was in receipt of a federal grant from the National Highway System Preservation Program (NHSPP) for pavement preservation for the Court Street corridor between Road 44 and Road 68. The second project on Court Street from US HWY 395 to 20th Ave was to be paid for with Local funds. In order to gain efficiencies and minimize disruptions along this corridor, both CIP projects were combined into a single construction project. The focus of the project was to grind and resurface Court Street including pavement repairs, partial curb installation/replacement, pavement markings, and other associated work. The project was advertised on January 11, 2023, and bids opened on February 3, 2023. Central Washington Asphalt, Inc., was the low responsive bidder and was awarded the project. The Notice to Proceed (NTP) was issued on April 17, 2023, with Substantial Completion achieved on October 9, 2023. 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 receipts 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: This item was presented to Council at the November 25, 2024, Workshop. City Staff recommends approval of the Resolution for the acceptance of the Court Street Overlay Project, as constructed by Central Washington Asphalt, Inc. Page 35 of 464 Resolution – Accept Court St Overlay Project - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY CENTRAL WASHINGTON ASPHALT, INC., UNDER CONTRACT FOR THE COURT STREET OVERLAY PROJECT. WHEREAS, the work performed by Central Washington Asphalt, Inc., under contract for Project No. 21 304 & 21 308 has been examined by City of Pasco (City) Staff and been found to be in apparent compliance with the applicable project’s specifications and drawings; and WHEREAS, it is the City Staff’s recommendation that the City 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 Central Washington Asphalt, Inc., under contract for Project No. 21 304 & 21 308 as being completed in apparent compliance with the project’s specifications and drawings. Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance. Be It Further Resolved, that the final payment of retainage being withheld, pursuant to 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 the Public Works Director and Finance Director. 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 36 of 464 Court Street Overlay Project Acceptance Pa g e 3 7 o f 4 6 4 Court Street Overlay Pa g e 3 8 o f 4 6 4 CONSTRUCTION COSTS $2,994,620.00Engineer’s Estimate $2,885,000.00Bid Award $81,199.60Change Order Total $2,966,199.60Final Construction Contract Total Court Street Overlay AmountDescription of Contract Changes $52,528.00Total in Change Orders $28,671.60Bid Item Reconciliation Pa g e 3 9 o f 4 6 4 Questions? Pa g e 4 0 o f 4 6 4 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 12/2/24 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4536 - Acceptance of Work for New Pasco Animal Control Shelter I. REFERENCE(S): Resolution PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I Move to approve Resolution No. 4536, accepting work performed by G2 Commercial Construction Inc. of Kennewick Washington, under contract for the new Pasco Animal Control Shelter Project. III. FISCAL IMPACT: Total Payment to G2 Commercial Construction, Inc.: $4,428,075.51 This project was funded through a combination of funds from the City of Pasco, The City of Kennewick, and the City of Richland. IV. HISTORY AND FACTS BRIEF: The New Pasco Animal Control Shelter Project (No. 17999B), construction contract was awarded by Council action to G2 Commercial Construction , Inc. of Kennewick, WA on January 3, 2023 in the amount of $4,192,015.50. The project is now complete and was constructed per project specifications. Final construction costs paid totaled $4,428,075.51 after the approval of 13 Change Orders. Change Orders (CO) for the project included: CO No.1 ($7,713.00): Sales tax Change from 8.7% to 8.9%. Page 41 of 464 CO No.2 ($51,985.61): Add riprap and fabric under footprint of building. CO No.3 ($79,332.95): New FPUD vault, Owner delay, additional riprap. CO No. 4 ($29,038.41): Addition of EV charger. CO No. 5 ($52,246.33): ADA button relocated, Security upgrades, power for front door operators, electrical box walk updates, additional tree removal, light pole bases et at equal heights, lower cameras in kennel rooms, door camera upgrade, and re-slope property. CO No. 6 ($5,887.80): Extra heating equipment and fuel due to FPUD not receiving the transformer in time. CO No. 7 ( $3,350.29): Mini Split realignment. CO No. 8 ( - $1,247.51): Freezer credit for not moving old freezer to new building. CO No. 9 ($1,310.47): Move boiler E-stop button and Emergency exit sign. CO No. 10 ($9,758.66): Addition of two emergency crash bars. CO No. 11 (-$1,464.78): Plywood credit. CO No. 12 (-$1,306.80) Toilet credit. CO No. 13 ( -$544.50): Chase way credit for washer and dryer. The project is complete and the materials and workmanship meet the standards specified in the contract documents. 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 receipts 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 Page 42 of 464 V. DISCUSSION: This Item was presented at the November 25, 2024, Council Workshop Meeting. Staff recommends approval of the proposed Resolution accepting the work performed by G2 Commercial Construction, Inc. for the Construction of the New Pasco Animal Control Shelter Project. Page 43 of 464 Resolution – Pasco ACS Project Acceptance- 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY G2 COMMERCIAL CONSTRUCTION INC. OF KENNEWICK WASHINGTON, UNDER CONTRACT FOR THE NEW PASCO ANIMAL CONTROL SHELTER PROJECT. WHEREAS, the work performed by G2 Commercial Construction Inc., under contract for Project No. 17 999B 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 G2 Commercial Construction Inc., under contract for Project No. 17 999B as being completed in apparent compliance with the project specifications and drawings. Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance. Be It Further Resolved, that the final payment of retainage being withheld, pursuant to 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 Public Works Department staff and Finance Director. 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 November, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 44 of 464 December 2, 2024 Pasco City Council Regular Council Meeting Pa g e 4 5 o f 4 6 4 Acceptance of Construction - New Tri-Cities Animal Control Facility Project # 17999B December 2, 2024 Pasco City Council Pa g e 4 6 o f 4 6 4 Contract awarded on January 2023, to G2 Commercial Construction Inc. of Kennewick WA for $4,192,015.50 Tri-Cities Animal Control Facility Project # 17999B 3 Subtitles Body copy Pa g e 4 7 o f 4 6 4 Subtitles Body copy Tri-Cities Animal Control Facility Before 4 Pa g e 4 8 o f 4 6 4 Subtitles Body copy Tri-Cities Animal Control Facility in Progress 5 Pa g e 4 9 o f 4 6 4 Final Construction Cost: $4,428,075.51 Change Orders: $236,060.01 Tri-Cities Animal Control Facility After 6 Pa g e 5 0 o f 4 6 4 Tri-Cities Animal Control Facility 7 Construction Costs Engineer’s Estimate $4,624,607.80 Bid Award $4,192,015.50 Change orders $236,060.01 Final Construction Costs $4,428,075.51 Change Order No.Change Order Description Change order Amount 1 State Sales Tax Change From 8.7% to 8.9%$7,713 2 Rip Rap and Fabric Under Footprint of Building $51,985.69 3 New FPUD Vault, Owner Delay ,Additional RipRap $79,332.95 4 EV Charger $29,038.41 5 ADA Button relocated,Security upgrades, Power for Front Door Operators, Box Walk Updates, Tree Removal, Light Pole Bases Set at Equal Height, Lower Cameras, Door Camera UpgradeResloping Property.$52,246.33 6 Extra Fuel and Heating Equipment Due to FPUD not Receiving the Transformer in Time.$5,887.80 7 Mini Split Power realignment $3,350.29 8 Freezer Credit For Not Moving Old Freezer to New Building.($1,247.51) 9 Move E-Stop Button and Emergency Exit Sign $1,310.47 10 Addition of Two Emergency Crash Bars $9,758.66 11 Plywood Credit ($1,464.78) 12 Toilet Credit ($1,306.80) 13 Chase Way Credit for Washer and Dryer ($544.50)  TOTAL $236,060.01     Pa g e 5 1 o f 4 6 4 Questions? 8 Pa g e 5 2 o f 4 6 4 Thank You!Pa g e 5 3 o f 4 6 4 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, Interim City Manager City Council Workshop Meeting: 12/2/24 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4537 - Bid Award for Martin Luther King Jr. Community Center Remodel and Expansion Phase 1 Construction Project I. REFERENCE(S): Resolution Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4537 awarding Bid No. 21314 for the Martin Luther King Jr. Renovation and Expansion Project Phase 1 project to Booth and Sons Construction, Inc. of Kennewick, Washington, and further, authorize the City Manager to execute the contract documents, allowing for all necessary budget adjustments. III. FISCAL IMPACT: Engineer’s Estimate: $3,200,000.00 including WA State Sales Tax Contract Total: $ 2,760,615.00 including WA State Sales Tax Funding for this project is provided for by Grants from the Federal Government, and State of Washington Grant Name Amount Federal ARPA Grant $2,500,000.00 Federal Housing and Urban Development Grant $3,000,000.00 State of Washington Department of Commerce Grant $980,000.00 Total Grant Amount $6,480,000.00 IV. HISTORY AND FACTS BRIEF: The East Pasco Neighborhood facility was constructed in 1975 after years of requests by the members of the East Pasco Community. In 1986, the East Pasco Neighborhood facility was renamed the Martin Luther King Community Page 54 of 464 Center. For nearly 50 years the facility has been a place for recreation, education, civic discourse, and religious worship. Various recreational offerings include: basketball games, indoor soccer games, and fitness classes. Educational offerings include: English classes for adults, tutoring programs, and preschool classes for community children. The Center has served as a polling place, while organizations promoting civil rights, affirmative action, and migrant labor rights have used the facility as a meeting spot. Religious and civic groups have held celebrations and pageants at the facility. Unfortunately, after nearly 50 years of use, the facility is coming to the end of its operational lifecycle and needs major renovation and updating to continue serving the East Pasco Community. The Martin Luther King Jr. Community Center Renovation and Expansion Project in and of itself will be a comprehensive renovation of the campus facilities. The work has been broken into three (3) phases to minimize the impact on the community and provide for continuous use of the portions of the facility not being affected by the respective work phases. This phase (Phase 1) will completely demolish everything to the bare walls, remodel, and bring up to code the Northwest building of the campus. Improvements will include new electrical, plumbing, and HVAC systems, and installation of ADA compliant restrooms. Phase 1 will also create classroom space, a community room, and offices. Externally, play areas will be added and landscaping will be updated. The secured monies from State and Federal grants are anticipated to be used in this phase. It is anticipated that any remaining grant funds will be used in subsequent phase improvements. V. DISCUSSION: This item was discussed at the November 25, 2024, Council Workshop Meeting. Architects West of Coeur d'Alene, Idaho designed the Martin Luther King Jr. Community Center Renovation Expansion Project - Phase 1. The Phase 1 improvement plans and specifications were advertised on October 23 2024. Bids for were bids (5) Five 2024. were November on opened construction 19, received. Booth and Sons Construction Inc. of Kennewick, Washington was the lowest responsive, responsible bidder with a bid in the amount of $2,760,615.00. Bid Tabulation Contractor Name Total Bid w/Tax Booth and Sons Construction $2,760,615.00 Cliff Thorn Construction $2,881,060.58 ESF Solutions $3,144,184.76 Kirby Nagelhout $2,885,850.00 MH Construction $2,822,688.00 Architects Estimate $3,200,000.00 Page 55 of 464 A formal protest was received from MH Construction relating to Booth and Sons bid submittal. After careful examination of the bid documents and bid proposal by the consultant team, staff, and legal counsel, the protest was found to be invalid and therefore dismissed. Staff recommends award of the construction contract to Booth and Sons Construction, Inc. of Kennewick, Washington, in the amount of $2,760,615.00. Page 56 of 464 Resolution – MLK Remodel & Expansion PH 1 Bid Award - 1 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AWARDING BID NO. 21314 FOR MARTIN LUTHER KING JR. COMMUNITY CENTER RENOVATION AND EXPANSION PROJECT PHASE 1 PROJECT TO BOOTH AND SONS CONSTRUCTION OF KENNEWICK WASHINGTON. WHEREAS, the City of Pasco (City) identified the Martin Luther King Jr. Community Center renovation and Expansion Project in the approved Capital Improvement Plan; and WHEREAS, this Contract provides for the remodeling, and bringing up to code the Northwest building of the campus and to completely remove the interior, and will include new electrical, plumbing, and HVAC systems, and installation of ADA standard restrooms. It will also create classroom space, a community room, and offices. Externally, play areas will be added and landscaping will be updated, and WHEREAS, the City solicited sealed public bids for this project, identified as Martin Luther King Jr. Community Center Renovation and Expansion Project Phase 1 Project; and WHEREAS, on November 19 2024, at 11:00 a.m., Five (5) bids were received and opened by the City; and WHEREAS, the lowest responsive bidder was _Booth and Sons Construction with a bid of $2,760,615.00, the Engineer’s Estimate was $3,200,000.00; and WHEREAS, the bid documentation was reviewed, and the bidder was determined to be responsible and responsive. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City hereby awards the Martin Luther King Jr. Community Center Renovation and Expansion Project Phase 1 Project to Booth and Sons Construction of Kennewick, Washington, in the amount of $2,760,615.00; and further authorizes the City Manager to execute the Contract documents. Be It Further Resolved, that this Resolution shall take effect and be in full force immediately upon passage by the City Council. Page 57 of 464 Resolution – MLK Remodel & Expansion PH 1 Bid Award - 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 58 of 464 Pa g e 5 9 o f 4 6 4 PHASING PLAN Pa g e 6 0 o f 4 6 4 PHASE 1 PROPOSED SITE PLAN CONCEPT Pa g e 6 1 o f 4 6 4 PHASE 1 PROPOSED FLOOR PLAN Pa g e 6 2 o f 4 6 4 PHASE 1 CONCEPTUAL OVERHEAD VIEW Pa g e 6 3 o f 4 6 4 CONCEPTUAL PLAYGROUND Pa g e 6 4 o f 4 6 4 CONCEPTUAL NORTH OUTDOOR SPACE Pa g e 6 5 o f 4 6 4 PHASE 1 INTERIOR DESIGN Pa g e 6 6 o f 4 6 4 PHASE 1 – PRELIMINARY CONSTRUCTION COST ESTIMATE: $3.2M Next Steps for Phase 1: Early- mid October 2024 Complete design Mid -late October 2024 Advertise for bids November 2024 Open bids December 2024 Bid Award and Contract Execution Current Secured Funding Amount ARPA Award $2,500,000 WA State Direct Appropriation $980,000 Federal Award $3,000,000 TOTAL $6,480,000 Pa g e 6 7 o f 4 6 4 Engineers Estimate: $3,200,000 Proposed Bid Award: $2,760,615 Contractor Name Total Bid w/Tax Booth and Sons Construction $2,760,615.00 Cliff Thorn Construction $2,881,060.58 ESF Solutions $3,144,184.76 Kirby Nagelhout $2,885,850.00 MH Construction $2,822,688.00 Architects Estimate $3,200,000.00 Pa g e 6 8 o f 4 6 4 THANK YOU! Pa g e 6 9 o f 4 6 4 AGENDA REPORT FOR: City Council November 19, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Resolution No. 4538 - I-182/Broadmoor Blvd. Interchange Project Change Order No. 9 Approval I. REFERENCE(S): Resolution Exhibit A – Change Order No. 9 Power Point Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4538, authorizing the City Manager to execute Change Order No. 9 with Nelson Construction Corp. for the I-182 and Broadmoor Boulevard Interchange. III. FISCAL IMPACT: Awarded Construction Contract Amount $6,691,534.74 Change Oder No. 1 – No. 8 - $639,745.61 Change Order No. 9 - $42,856.34 New Contract Total - $7,374,136.69 IV. HISTORY AND FACTS BRIEF: The existing freeway interchange (I/C) at Broadmoor Blvd. (Rd. 100) and I-182 serves as the areas primary access point for a large segment of the City's population in the westerly portion of the City of Pasco (City). As development has have I/C the on demands existing past the over occurred decade, increased proportionately. The cumulative effects of increased commercial development to the south of the interstate; office and commercial uses along Sandifur and Blvd.; residential development east of Broadmoor/Rd. 100; development of Burns Rd. between Rd. 68 and Broadmoor Blvd. have all served to fully utilize the existing I/C. Page 70 of 464 Several improvements to the I/C were identified in collaboration with Washington State Department of Transportation (WSDOT), Federal Highway Administration, the City, and local development community and on June 30, 2023, construction awarded which the Resolution adopted Council 4363 Blvd. Broadmoor & I-182 the for Construction Nelson to contract Corp., Interchange. The contract’s I/C improvements include the construction of an additional eastbound deceleration lane on I-182, a new looped off ramp for northbound Broadmoor Blvd traffic, and a roundabout to replace the existing signal at the eastbound on/off ramps and Broadmoor Blvd intersection. Since the project’s initiation, 8 change orders have been identified, reviewed, and approved. Previously approved Change Orders No. 1 – No. 4 and No. 8 were approved under the delegated authority of the Public Works Director or City Manager. Change Orders No. 5 - No. 7 were approved by City Council. V. DISCUSSION: This item was discussed at Council’s Workshop of November 25, 2024. Change Order No. 9 includes the installation of guardrail embankments along I- 182 for a compliant guardrail safety system. The gravel embankments were inadvertently omitted from the contract and are necessary for compliance with WSDOT standards. Change Order No. 9 has been negotiated with the contractor, and it is believed to be reasonable, for an amount of $42,856.34. As a necessary component of the project, this cost would have borne by the City even if it was part of the original bid. City of Pasco staff has reviewed the change order and recommends approval in the amount of $42,856.34. Page 71 of 464 Resolution – CO 9 to I-182 & Broadmoor Interchange - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 9 WITH NELSON CONSTRUCTION CORP. FOR THE I-182 & BROADMOOR BLVD. INTERCHANGE. WHEREAS, the City of Pasco (City), and Nelson Construction Corp. entered into a Construction Contract on June 30, 2023, for construction of the I-182 & Broadmoor Blvd. Interchange Project; and WHEREAS, I-182 & Broadmoor Blvd. Interchange Project addressed the need for a deceleration lane on Eastbound I-182 offramp, a new loop ramp connecting to Northbound Broadmoor Boulevard, a roundabout at the Eastbound Terminal of Broadmoor Boulevard, active transportation improvements, and other work; and WHEREAS, previously approved Change Orders No. 1 – No. 4, and No. 8 were under the authority provided to the Public Works Director; and WHEREAS, Change Orders No. 5, 6, and 7 were all approved by Council and executed; and WHEREAS, Change Order No. 9 compensates the contractor for building a required embankment for the installation of guardrail on the north and south side of I-182. The guardrail protects the traveling public from the bridge sign’s vertical supports. In addition, this embankment is required for a compliant guardrail safety system per Washington State Department of Transportation (WSDOT); and WHEREAS, the $42,856.34 amount of Change Order No. 9 added to the cumulative sum of the previously approved Change Orders, exceeds the City Manager’s authority, and thus determined to obtain Council Approval; 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 to enter into Change Order No. 9 with Nelson Construction Corp. 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. 9 between the City of Pasco and Nelson Construction Corp. as attached hereto and incorporated in Exhibit A. Page 72 of 464 Resolution – CO 9 to I-182 & Broadmoor Interchange - 2 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. 9 on behalf of the City of Pasco, and 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 73 of 464 Description of Change:Work not included in the original contract and identi?ed as needed during construction. Detail as Appropriate:This new Lump Sum item compensates the contractor for building a required embankment onto which guard rail will be installed.This embankment is required for a compliant guardrail safety system and for it to operate correctly if struck. Project No:21—292 Project Title:l-182 and Broadmoor Boulevard Interchange Contractor:Nelson Construction Corp. CITY OF PASCO PUBLIC WORKS DEPARTMENT CONTRACT CHANGE ORDER NO.9 Contract Bid Amount: SALES TAX @ 8.9%: Total: Subtotal including tax $639,745.61 Subtotal No tax S 639,745.61 Total PREVIOUS CHANGE ORDERS TOTAL CURRENT CHANGE ORDER description and payment method Guardrail embankment,lump sum Total Change Orders To Date New Contract Amount $ ”$69 cost totals 42,856.34 6,144,660.00 546.874.74 6,691,534.74 42,856.34 42,856.34 682,601.95 7,374,136.69 PUBLICWORKS DIRECTOR Date CITYMANAGE CONSTRUCTION MANAGER Date DEPUTYPW DIRECTOR-ENGINEERING Date IS CONTRACTTIMEAFFECTED BY THIS CHANGE ORDER YES NO Contract Time Prior to this Change Order ................................360 Modi?cation to Contract Time by this Change Order ..................0 Revised Total Contract Time ................................................360 It is mutually agreed by both parties that this Change Order fully describes the change(s)that is (are)being made and that the compensation for this Change Order is full and complete and is the only compensation due or owing for this Change Order.Further,it is mutually agreed that this document will supplement the present Contract Documents and that the provisions of the previously executed Contract Documents shall apply to this Change Order. AGREED TO AND ACCEPTED:APPROVED: CONTRACTOR Date PROJECT MANAGER Dale APPROVED:APPROVED: Page 1 of 2 Date APPROVED:APPROVED: Total item 121 Page 74 of 464 gm —HEOME ~37:“dz.8..on mung—#33562mSea—23.5QNme.893 no56 “55:25€5.555.8?SEEEm a.SS wwom?vm83Ea33mmme1289$55amgnmmOm$.mex5mmim «33.9a$35amqpmmmom45053 emdwm?m wmdwm?mmwmchKmw .900nouozbmnoono?oz age—E main125a55$:75 E75 >5 NaNAN”.02 83on 033233 vim 825%.on NwTH oomammoEMU.OZ 2?:.OZ .Om— mganuga?m@3530 S momm «SN.2anaum wHHDQHEUm Gum ZO—HAEOWHQ 2H,: Page 75 of 464 Page 1 09/13/2024 8:55 1910,09 MOBIIJZL 0N T0 «103511 9119,:ELLIS,,HISZS 10:99 $29!:55 WC:1L0; Nelson Construction Corp 23CC001—BD I-l 82 Broadmoor Interchange-Budget Sergio Sanchez Direct Cost Report Activity Desc Quantity Unit Perm Constr Equip Sub- Resource Pcs Unit Cost Labor Material Matl/Exp Ment Contract Total BID ITEM =10030 Description =EMBANKMENT AT GUARDRAIL Unit =LS Takeoff Quan:1.000 Engr Quan:1.000 __19 (Mod)6M Mass Exc/Emb 10.00 CH Prod:10.0000 CH Lab Pcs:4.00 Eqp Pcs:5.50 2B001 CSBC 1.00 300.00 TN 15.000 4,500 4,500 4SURV'EY SURVEY SUB 1.00 1.00 LS 3,500.000 3,500 3,500 4TRAF TRAFFIC CONTROL 1.00 1.00 DAYS 2,850.000 2,850 2,850 5AG01 AGG HAUL 1.00 300.00 TN 8.000 2,400 2,400 8DZ450 D2 450 0.50 5.00 HR 110.000 550 550 8EX135 EX13SG w/GPS 1.00 10.00 HR 145.000 1,450 1,450 8PU2500 UT Truck 2500 1.00 10.00 HR 25.000 250 250 8PU3500 UT Truck 3500 1.00 10.00 HR 25.000 250 250 8RLRLGAC RL LRG AC 1.00 10.00 HR 50.000 500 500 8WT4K WT 4K Gal 1.00 10.00 HR 62.500 625 625 102 Grade Checker 1.00 10.00 MH *82.320 823 823 002 Oper.Excavator 1.00 10.00 MH *98.053 981 981 007 Oper.Dozer 0.50 5.00 MH *98.580 493 493 013 Oper.Grade Roller 0.50 5.00 MH *95.688 478 478 016 Opcr.Foreman 0.50 5.00 MH *97.510 488 488 TR03 Truck Driver Water Truck 0.50 5.00 MH *89.610 448 448 $20,585.67 40.0000 MH/LS 40.00 MH [3137.56 ]3,711 4,500 2,400 3,625 6,350 20,586 ----------Mobilization —-------—— Round Trip Time (Hours)6 Equipment Pieces Hours Grader 0 Roller 0 Excavator 0 Backhoe 0 Loader 0 Dozer 0 Curb Machine 0 Water Trucks 0 T rucks 1 Other 1 O Other 2 O u Pther 3 0 0 Total 1 6 End Calculation MOBE Transport Truck 6.00 CH Prod:6.0000 CH Lab Pcs:1.00 Eqp Pcs:2.00 8TRKSEMI ST Semi Tractor 1.00 6.00 HR 115.000 690 690 8TRLLOWBOY TR Lowboy 1.00 6.00 HR 90.000 540 540 TR04 Truck Driver Transport (Pri 1.00 6.00 MH *88.810 533 533 $1,762.86 6.0000 MH/LS 6.00 MB [450]533 1,230 1,763 C_V_10 (Mod)6M Mass Exc/Emb 10.00 CH Prod:10.0000 CH Lab Pcs:4.00 Eqp Pcs:4.00 3A10 Dump Fee Dirt 1.00 108.00 CY 10.000 1,080 1,080 4TRAF TRAFFIC CONTROL 1.00 1.00 DAY 2,850.000 2,850 2,850 5EX01 EXPORT HAUL 1.00 108.00 CY 8.000 864 864 8DZ450 DZ 450 1.00 10.00 HR 110.000 1,100 1,100 8EX135 EX 135G w/GPS 1.00 10.00 HR 145.000 1,450 1,450 8RLRLGAC RL LRG AC 1.00 10.00 HR 50.000 500 500 8WT4K WT 4K Gal 1.00 10.00 HR 62.500 625 625 205mm MASS EXCAVATIONBIOSWALE MATERIAL 9gp;L09 gs Hrg/Shft OOOOOOOOGOA 205004 ANKMENTAT GUARDRAI Quay;1.90,,LS,,E?/Shfj;10.00 Cal.ss WC:10102 Page 76 of 464 217000 MISC.JOBSITECLEV U13 Quan:1.00 LS Hrs]ft 10.00 Cal:ss WC;0102 Page 2 09/13/2024 8:55 Nelson Construction Corp 23CC001-BD I-182 Broadmoor Interchange-Budget Sergio Sanchez Direct Cost Report Activity Desc Quantity Unit Perm Consu-Equip Sub- Resource Pcs Unit Cost Labor Material Matl/Exp Ment Contract BID ITEM =10030 Description =EMBANKMENT AT GUARDRAIL Unit LS Takeoff Quan:1.000 Engr Quan: 102 Grade Checker 1.00 10.00 MH *82.320 823 002 Oper.Excavator 1.00 10.00 MB *98.053 981 007 Oper.Dozer 0.50 5.00 MH *98.580 493 013 Oper.Grade Roller 0.50 5.00 MB *95.688 478 016 Oper.Foreman 0.50 5.00 MB *97.510 488 TR03 Truck Driver Water Truck 0.50 5.00 NIH *89.610 448 $12,179.67 40.0000 MH/LS 40.00 MB [3137.56]3,711 1,944 3,675 2,850 CV16 (Mod)3M Small Struct Exc 5.00 CH Prod:5.0000 CH Lab Pcs:2.00 Eqp Pcs: 4TRAF TRAFFIC CONTROL 1.00 0.50 DAY 2,500.000 1,250 8PU2500 UT Truck 2500 1.00 5 .00 HR 25.000 125 8WT4K WT 4K Gal 1.00 5.00 HR 62.500 313 SZSWEEPER PLS Street Sweeper 1.00 5.00 HR 31.250 156 011 Oper.Broom 1.00 5.00 MH *89.276 446 TR03 Truck Driver Water Truck 1.00 5.00 MH *89.610 448 $2,738.18 10.0000 MH/LS 10.00 MH [755.93 ]894 594 1,250 ——>Item Totals:10030 EMBANKMENT AT GUARDRAIL $37,266.38 96.0000 MI-I/LS 96.00 NIH [7481.05 ]8,849 4,500 4,344 9,124 10,450 37,266.380 1 LS 8,848.63 4,500.00 4,344.00 9,123.75 $37,266.38 ***Report Totals ***96.00 MH 8,849 4,500 4,344 9,124 10,450 >>>indicates Non Additive Activity ——Report Notes:--— The estimate was prepared with TAKEOFF Quantities. This report shows TAKEOFF Quantitieswith the resources. Actual Unit Cost is used,which includes taxes,escalation,etc. Bid Date:06/27/23 Owner:Engineering Firm: Estimator-In—Charge: JOBNOTES Estimate created on: Source estimate used: 06/07/2023 by User#:1 -Cory Bell 2 :\EST\ESTMAST ************Estimate created on: Source estimate used:Z:\EST\NCCMST2023 ************Estimate created on:07/27/2023 by User#:1 Source estimate used:Z:\EST\23CC001 *on units of MH indicate average labor unit cost was used rather than base rate. []in the Unit Cost Column =Labor Unit Cost Without labor Burdens In equipment resources ,rent 9.;and EOE %not = ——Calendar Codes----— 410 10 Hours x 4 Days 508 8 Hours x 5 Days 510 10 hours x 5 Days (Default Calendar) 610 10 Hoursx6Days 710 10 Hoursx7Days SS 10 Hours Saturday and Sunday 06/12/2023 by User#:1 —Cory Bell Cory Bell Total 1.000 823 981 493 478 488 448 12,180 3.00 1,250 125 313 156 446 448 2,738 37,266 10,450.00 37,266.38 37,266 100%are represented as XXX95YYY where XXX=Rent%and YYY=EOE% Page 77 of 464 .2;mama2mg mhm ><§.u0.._.:uE Snagum mtz:d: whiz.50 zetagum $3.500 583E wrap—.238 uszam z<._n_0255.0._.zms_v_z<ms_m.__<mn_m_<3o <3dam: moz<zommhz_am<>m._:om«cosh—gumoz<Nm—L nzm?w; Sévdudz<.EDin—25hSum;mum mmpOz \\V......_......../I..l.l.1..1lv£.?v....I2...2.21.2222...222......WNVVVVVQVIV‘ . (AMI”ix‘?v mMm5‘ 1..MHHHIHIUAwLy HATCHLINE:STALE14511-20 SEEDWGGRD? 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IlllllllnsIIIIIIIIIIIIIIIIIIII I ...........M/w.......\\l ...............@Msag?wm?al- :::::::::::::Q.\llily‘-ili\\Iii IA,IIII\\\ | \\\\\\\\\\\\\\\\\\\.llllllllllllllll/|lllll\\IIIIIIIIIIIIIIIIIIIIllx aw|l| W399M0ES 01%|FIVE :ENI'IHOLWI H l Ai ||||||||||IL‘IEIIIIIIIIIIIIIIIIIIAuullxu llllllllllll ///llllllllll\I5111!/ (VII lllllll d lllllllllllll _ dun:.nxu mm 5W WWW"We WIRMMWKNZ “’14)NE W!‘1 NH Nd KIDNAWW’qu lull “mm <nut 3|W .YMHN €30 cwwg Page 78 of 464 \H’ Ens: itbmIutn .a.w .2.93: PEmica zo_._.om_mFzmzxz<m2m4m><m®Jimmy—<36 _._.EOz ozzozooszle/ 3.2“Sm zo_._.om_m._.zm__2v_z<mEm_._m_><mw4.5.9230 ISOw .953a;?g$.53.qdFadme<>bin mmE<>mug) 5.0m 52m 32 WEEK mzoFomw._.zms_v_z<ms_m.=<mnm<:o 313158® 552a5025© zoEEzSEusz?zm© 35>:E52855".@ :2qu Emsnws?mnxaEa?am?muzoutm?u© m??sauz?z?i:a ‘_.damnEna?xmHm gm.m>m:E;gzO?zmmmanummmz?zu6 «5:1 SEEnws?mnzaamu—Ehwmxuzsh??cG <EJEEEe 2.2.“.5.:E.835.a$8. 98250285283.255.323:9 3.5.“.25mEmEtna—?MEG. E2092950E529052350530:9 a—drumZED—hhgmgwml:E40“[WP—a ¢58E528Emzuu:9553:5.3.2202e ENEEwzokm Engamnz?hEgasimamaze.EmZmQ@ ammo?mmaouwas”92.05:“8:35Qv ng?h—m?dé:e E:zoFuaEhzcu <3.oom<..._ moz<xommpz_am<>?zom«8:325oz<«3; 5.5.2:... is 5:23{in 335.3(E4in.3—waszgozm?mnNOD—Nu.0:ma _. um1.<u m :9»153.5%:Ea @ s 535%E 593 E 85mm:E is: zo_w_>mm .010 >m m._.<n .Oz how-wowsW Mme Mun Wannnmmmu m)m We 1 EH ma wtmlAmu—m?q 1m mm -m):’9:5w dun? camp Page 79 of 464 Change Order No. 9 Approval – I-182 Guardrail Embankments Pa g e 8 0 o f 4 6 4 I-182 & Broadmoor Blvd. Interchange Overview Approximately 95% complete as of October 2024. Project is currently scheduled for completion December 2024. Summary of Project Construction Costs o Construction Contract Award w/Nelson Construction, Corp. (June 2023) = $6,691,534.74 o Change Order No. 1 – No.8 = $639,745.61 o Change Order No. 9 = $42,856.34 o New Total (All Changes) = $7,374,136.69 Pa g e 8 1 o f 4 6 4 PWRF Improvements Phase 3 I-182 & Broadmoor Blvd. Interchange Project Pa g e 8 2 o f 4 6 4 Proposed Change Order N0. 9 Change Order No. 9 includes the installation of guardrail embankments along I-182 for a compliant guardrail safety system. The gravel embankments were inadvertently omitted from the contract and are necessary for compliance with WSDOT standards. The change order has been negotiated with the contractor, and it is believed to be reasonable, for an amount of $42,856.34. As a necessary component of the project, this cost would have borne by the City even if it was part of the original bid. Staff recommends approval of CO No. 9 Pa g e 8 3 o f 4 6 4 Questions? Pa g e 8 4 o f 4 6 4 AGENDA REPORT FOR: City Council November 26, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4539 - West Pasco Water Treatment Plant Phases 3 & 4 Drinking Water State Revolving Fund Additional Loan Acceptance I. REFERENCE(S): Resolution Exhibit A - DWSRF Loan Contract No. DWL29708-0 Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4539, approving and authorizing the City Manager to execute and deliver the Drinking Water State Revolving Fund Loan Contract No. DWL29708-0 with the Washington State Department of Health for the West Pasco Water Treatment Plant Phases 3 and 4 Project. III. FISCAL IMPACT: The City was awarded an additional loan in the amount of $1,173,943.00 to partially fund full construction of the West Pasco WTP (WPWTP) Phases 3 and 4 State Washington the by Improvements. is loan The administered Department of Health (DOH) as part of their State Revolving Fund (DWSRF) program. The loan has a 20-year term with an effective interest rate of 2.25% and an included service fee of 1%. IV. HISTORY AND FACTS BRIEF: The 2019 Comprehensive Water System Plan identified a series of plant and pumping system expansions necessary to achieve a reliable West Pasco WTP treatment capacity of 18 Million Gallons per Day (MGD). The packaged Phases 3 and 4 represent the final improvements of the planned facility expansion, which include the design and construction to increase potable water production from 12MGD to 18MGD. Page 85 of 464 In November of 2023, Resolution No. 4397 was approved to authorize the City to apply for a Washington State DOH low-interest loan through the DWSRF program. The program provides low-interest construction loans to fund publicly owned municipal water systems. Subsequently, the City was selected as a recipient for the DWSRF construction loan in the maximum award amount of $12M for the WPWTP Phases 3 and 4 Improvements. Upon notification of award, Resolution No. 4515 was adopted on November 4, 2024, to authorize approval of the initial $12M DWSRF Loan Contract No. DWL29303-0 with the Washington State DOH. This award amount represents the maximum available funding per jurisdiction for the 2023-2024 construction loan award cycle. Due to availability of remaining Bipartisan Infrastructure Law (BIL) funds and the City’s ranking on the 2023 DWSRF Project Priority List, the Washington State DOH awarded an additional $1.17 million loan beyond the initial $12 million previously awarded. Both the initial loan and the additional award funds from DOH will be used for full construction of the expanded membrane filtration system, cyanotoxin treatment, service pumps, and backwash recovery system. V. DISCUSSION: This item was discussed at the November 25, 2024 Council Workshop meeting. Staff recommends approval of the additional low-interest Loan Contract No. DWL29708-0 from the Washington State Department of Health Drinking Water State Revolving Fund program for the construction of the West Pasco Phases 3 and 4 Improvements Project. Page 86 of 464 Resolution - DWSRF Loan Contract DWL29708-0 - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND DELIVER THE DRINKING WATER STATE REVOLVING FUND LOAN CONTRACT NO. DWL29708-0 WITH WASHINGTON STATE DEPARTMENT OF HEALTH FOR THE WEST PASCO WATER TREATMENT PLANT PHASES 3 AND 4 PROJECT. WHEREAS, the City of Pasco (City) currently provides reliable potable water service with projected increases in future water system usage anticipated; and WHEREAS, the 2019 Comprehensive Water System Plan identified improvements to the West Pasco Water Treatment Plant (WPWTP) in order to increase water filtration capacity and potable water production from 12 Million Gallons per Day (MGD) to 18 MGD; and WHEREAS, the Washington State Department of Health subsequently identified and awarded additional available Drinking Water State Revolving Fund (DWSRF) loan funds beyond the maximum 2023 Construction Loan cycle award amount of $12,000,000 for the WPWTP Phases 3 and 4 Improvements; and WHEREAS, the proposed additional loan includes a principal amount of $1,173,943.00 bearing interest at an interest rate of 2.25% per annum with a term of 20 years and a one percent (1%) service fee in the loan amount upon execution; 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 DWSRF Loan Contract No. DWL29708-0 with Washington State Department of Health. 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 DWSRF Loan Contract No. DWL29708-0 between the City of Pasco and Washington State Department of Health 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 and directed to execute and deliver DWSRF Loan Contract No. DWL29708-0 on behalf of the City of Pasco. Be It Further Resolved, that this Resolution shall take effect immediately. Page 87 of 464 Resolution - DWSRF Loan Contract DWL29708-0 - 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, MMC William G. Tonkin, Attorney City Clerk Foster Garvey P.C. Page 88 of 464 November 2, 2024 City of Pasco Adam R. Lincoln 525 North Third Ave Pasco, WA 99301 lincolna@pasco-wa.gov RE: Loan Contract Number: DWL29708-0 Dear Mr. Lincoln, Enclosed is the Drinking Water State Revolving Fund Loan Contract Number identified above for your signature. The Loan Contract details the terms and conditions that will govern the agreement between us, which includes the project's Scope of Work as a formal attachment. Failure to return the contracts within 60 calendar days of the date of this letter may result in your loan offer being withdrawn. Review, print and sign the document. Once signatures are obtained, scan and return by email to dohcon.mgmt@doh.wa.gov or print and sign a hard copy and return the originals to us for full execution. Please note that the U.S. Environmental Protection Agency is the funding source for this program and the Catalog of Federal Domestic Assistance (CFDA) number is 66.468. Consequently, the loan funds are federal and subject to both state and federal requirements. A non-refundable one-percent loan administration fee will be collected at contract execution (If applicable), including any subsequent amendments where funds are added. The loan amount may be modified to include an amount sufficient to cover the one-percent loan administration fee. In most cases, the fee will be collected in full at contract execution. Please review the terms and conditions of the Loan Contract and all attachments carefully for details. A requirement of the DWSRF program is that you must maintain updated project records and yearly renewal of your registration in the System for Award Management at www.sam.gov. Another requirement of the DWSRF program is that all entities are required to verify that the federal government has not suspended or debarred them from receiving federal funds. This includes, but is not limited to, project contractors, subcontractors, engineers, architects, consultants, and equipment vendors. The Exclusion Report can be accessed at www.sam.gov. Failure to provide this required certification may result in termination of your loan contract. After the Loan Contracts have been signed by the Department or its designee, one fully executed original will be returned to you for your files. Instructions for drawing the loan funds will be returned to you with the executed Loan Contract, as well as the necessary forms. The Loan Contract specifies that draws may be made for costs that have been incurred within the contract period of performance, and which have supporting documentation such as receipts or bills. We are looking forward to working with you over the course of this project. If you have any questions about this Loan Contract, please contact me. Sincerely, Rachel Paris DOH Contract Manager 360.236.4294 Rachel.Paris@DOH.WA.GOV Enclosures: ATTACHMENT I: SCOPE OF WORK (PROJECT) ATTACHMENT II: ATTORNEY'S CERTIFICATION ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS ATTACHMENT IV: DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ATTACHMENT V: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS ATTACHMENT VI: DWSRF ELIGIBLE PROJECT COSTS ATTACHMENT VII: LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Page 89 of 464 Version History Date Revision(s) Version 05-15-2018 Original - developed via a team of the DWSRF Grant and Loan Unit Supervisor, the DOH Office of Drinking Water Finance Director, the DOH Office of Contracts and Procurement Technical and Policy Advisor, and DOH’s Financial Services Assistant Attorney General. 1 Washington State Department of Health DWSRF Municipal Loan Boilerplate May 2018 Page 90 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 1 of 31 DWSRF Loan Contract (Municipal) v1 1. CONTRACT FACE SHEET 2023-4228 Loan Number: DWL29708-0 Washington State Department of Health (DOH) Drinking Water State Revolving Fund (DWSRF) Municipal 1.Borrower 2.Borrower Doing Business As (optional) City of Pasco 525 North Third Ave Pasco, WA 99301 3.Borrower Type Construction Loan 4.Borrower’s Statutory Authority 5. Borrower Contract Manager Information 6. DOH Contract Manager Adam R Lincoln City Manager 509-544-4131 lincolna@pasco-wa.gov Name: Rachel Paris P.O. Box 47822 Olympia, WA 98504-7822 360.236.4294 rachel.paris@doh.wa.gov 7.Project Name West Pasco Treatment Plan Improvement Phase 3 and 4 Additional Funds 8.Loan 9. Funding Source 10.Start Date 11. End Date Amount: $1,173,943.00 Loan Fee: $11,623.00 Interest Rate: 2.25% Federal: State: Other: DOE 10/01/2048 12. Federal Funding Agency Environmental Protection Agency Catalogue of Federal Assistance (CFDA) Number 66.468 13.Borrower Tax ID # 91-1983815 14.SWV # 0007164-00 15.Borrower UBI # 113000052 16.Borrower UEI # VJX8X4J5TL95 17. Contract Purpose DOH and the party identified above as Borrower, hereafter referred to as BORROWER, have entered into this contract to fund the project identified above that furthers the goals and objectives of the DOH DWSRF Program. The project will be done by the BORROWER as described in the scope of work and this contract. The rights and obligations of the parties are governed by this contract and the following documents incorporated by reference: General Terms and Conditions including Declarations; Attachment I: Scope of Work (Project); Attachment II Attorney's Certification; Attachment III: Federal and State Requirements; Attachment IV: Disadvantaged Business Enterprise Requirements; Attachment V: Certification Regarding Debarment, Suspension, and Other Responsibility Matters; Attachment VI: DWSRF Eligible Project Costs; and Attachment VII: Labor Standard Provisions for Subrecipients that are Governmental Entities. By the signature below, the parties acknowledge and accept the terms of this contract. FOR CONTRACTOR FOR DOH SIGNATURE AND DATE SIGNATURE and DATE NAME and TITLE NAME and TITLE APPROVED AS TO FORM ONLY Mark Calkins, AAG Signature on File Page 91 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 2 of 31 DWSRF Loan Contract (Municipal) v1 2.TABLE OF CONTENTS 1.CONTRACT FACE SHEET 2.TABLE OF CONTENTS 3.DECLARATIONS 3.1. BORROWER INFORMATION 3.2. PROJECT INFORMATION (PROJECT) 3.3. CONTRACT COMMUNICATION 3.4. LOAN INFORMATION 3.5. FUNDING INFORMATION 3.6. SPECIAL TERMS AND CONDITIONS 4.GENERAL TERMS AND CONDITIONS 4.1. AUTHORITY 4.2. FULL AGREEMENT 4.3. ORDER OF PRECEDENCE 4.4. LOAN AMOUNT 4.5. LOAN FEE 4.6. LOAN TERM 4.7. INTEREST RATE 4.8. LOAN FORGIVENESS 4.9. RELEASE OF LOAN FUNDS AND REQUIRED DOCUMENTATION 4.10. TIME OF PERFORMANCE 4.11. PROJECT COMPLETION AMENDMENT AND THE PROJECT COMPLETION REPORT 4.12. LOAN PAYMENTS 4.13. LOAN DEFAULT 4.14. LOAN SECURITY 4.15. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS AND WAIVERS 4.16. BUILD AMERICA, BUY AMERICA 4.17. ATTORNEY’S FEES 4.18. BONUS AND COMMISSION PAYMENTS NOT ALLOWED 4.19. COMPLIANCE 4.20. DISPUTES 4.21. ELIGIBLE PROJECT COSTS 4.22. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM 4.23. FINANCIAL AUDIT 4.24. GOVERNING LAW AND VENUE 4.25. HISTORICAL AND CULTURAL REQUIREMENTS 4.26. INDEMNIFICATION 4.27. INDUSTRIAL INSURANCE REQUIREMENTS Page 92 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 3 of 31 DWSRF Loan Contract (Municipal) v1 4.28. LITIGATION 4.29. NONDISCRIMINATION 4.30. PREVAILING WAGE 4.31. PROCUREMENT 4.32. PROHIBITION STATEMENT 4.33. PROJECT SIGNS 4.34. PUBLICITY 4.35. RATES AND RESERVES 4.36. RECAPTURE 4.37. RECORDKEEPING AND ACCESS TO RECORDS 4.38. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT (SAM) 4.39. SEVERABILITY 4.40. SUBCONTRACTING 4.41. SURVIVAL 4.42. TERMINATION FOR CAUSE 4.43. TERMINATION OR SUSPENSION FOR CONVENIENCE 4.44. TERMINATION PROCEDURES 4.45. WORK HOURS AND SAFETY STANDARDS ATTACHMENT I SCOPE OF WORK (PROJECT) ATTACHMENT II ATTORNEY’S CERTIFICATION ATTACHMENT III FEDERAL AND STATE REQUIREMENTS ATTACHMENT IV DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ATTACHMENT V CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS ATTACHMENT VI DWSRF ELIGIBLE PROJECT COSTS ATTACHMENT VII LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Page 93 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 4 of 31 DWSRF Loan Contract (Municipal) v1 3.DECLARATIONS 3.1. BORROWER INFORMATION Legal Name: City of Pasco Loan Number: DWL29708-0 Award Year: 2023 State Wide Vendor Number: SWV# 0007164-00 3.2. PROJECT INFORMATION Project Title: West Pasco Treatment Plant Improvement ph 3 and 4 add’l Funds Project Location (City or County): Franklin Project State: Washington Project Zip Code: 99301 Project Scope of Work (PROJECT): Attachment I, attached hereto and incorporated by reference 3.3 CONTRACT COMMUNICATION Communications regarding Contract performance is delegated by each party to its Contract Manager. Either party may change its Contract Manager by notice to the other party. Either party may identify on an as needed basis an alternate Contract Manager to serve during the stated temporary absence of its primary Contract Manager. Notices between the parties regarding Contract performance must be provided by written communication to the other party’s Contract Manager. Written communication includes email but not voice mail. Notices are presumed received by the other party’s Contract Manager upon evidence of delivery between the hours of 8:00 am to 5:00 pm except for state holidays and weekends. 3.4 LOAN INFORMATION Loan Amount: $1,173,943.00 Loan Fee (Included in loan amount if applicable): $11,623.00 Principal Loan Forgiveness : 0% Loan Term: 20 Years Interest Rate: 2.25% Payment Month(s): October 1st Annually Earliest Date for Construction Reimbursement: 12 months prior to contract counter signed by DOH Time of Performance 48 months from Contract start date (date of last signature) to project Completion date. Notice to Proceed: 18 months from Contract start date 3.5 FUNDING INFORMATION Total Funds from BORROWER: $0.00 Source(s) of Funds from Borrower, with assigned amounts per source: NA Total State Funds: $1,173,943.00 Total Amount of Federal Award (as applicable): N/A Total Amount of Loan: $1,173,943.00 Federal Award Date: NA Federal Award ID # (FAIN): NA Amount of Federal Funds Obligated by this Action: NA 3.6 SPECIAL TERMS AND CONDITIONS N/A Page 94 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 5 of 31 DWSRF Loan Contract (Municipal) v1 4.GENERAL TERMS AND CONDITIONS DRINKING WATER STATE REVOLVING FUND (MUNICIPAL) 4.1. AUTHORITY Acting under the authority of Section 1452 of the Safe Drinking Water Act (SDWA) Section 130, RCW 39.34, RCW 43.70.040, and RCW 70.119A.170 the Washington State Department of Health (DOH) has awarded BORROWER a Drinking Water State Revolving Fund Loan (LOAN) for the project identified in the Declarations (PROJECT). Under this CONTRACT, BORROWER is a sub-recipient of funds provided by the United States Environmental Protection Agency (EPA), CFDA Number 66.468, Safe Drinking Water State Revolving Fund. In some CONTRACT attachments, DOH is referred to as “Lender” and BORROWER is referred to as “Contractor.” 4.2. FULL AGREEMENT This CONTRACT contains the full agreement of the parties. No other understandings, oral or otherwise, regarding the subject matter of this CONTRACT exists. 4.3. ORDER OF PRECEDENCE In the event of an inconsistency in this CONTRACT, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: The order of precedence for terms and conditions under categories B and C is subject to the proviso that when a contract term or condition appears in more than one contract document, the more specific contract term or condition shall control if the different contract provisions cannot be harmonized. A.Applicable local, state, and federal statutes and regulations B.Contract amendments C.The Contract (in this order) Declarations and Special Terms and Conditions General Terms and Conditions Attachments I – VII 4.4. LOAN AMOUNT DOH, using funds from the Drinking Water Assistance Account, will loan BORROWER a sum not to exceed the amount shown as LOAN AMOUNT in the Declarations. The LOAN AMOUNT shall not exceed one hundred percent (100%) of the actual eligible PROJECT costs. 4.5. LOAN FEE If DOH assessed a LOAN FEE, it is shown in the Declarations as LOAN FEE and included in the total LOAN AMOUNT. The fee (if applicable) is one percent (1%) of the loan request and will not be reduced, regardless of the final LOAN AMOUNT at PROJECT completion. If the LOAN FEE applies and the total LOAN AMOUNT is increased by amendment, DOH will assess an additional LOAN FEE equal to one percent (1%) of the additional LOAN AMOUNT. LOAN FEES are non-refundable. 4.6. LOAN TERM Unless changed by an amendment, the LOAN TERM will not exceed the period of time shown in the Declarations. The repayment period for DOH subsidized loans is twenty-four (24) years from this CONTRACT’s start date. The repayment period for non-DOH subsidized loans is twenty (20) years from this CONTRACT’s start date. 4.7. INTEREST RATE The interest rate is stated in the Declarations. Interest is per annum on the outstanding principal balance and starts to accrue from the date DOH releases LOAN FUNDS to BORROWER. Page 95 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 6 of 31 DWSRF Loan Contract (Municipal) v1 4.8. LOAN FORGIVENESS If the LOAN qualifies for LOAN Forgiveness, the percent of the LOAN balance that DOH will forgive at PROJECT completion is stated in the Declarations. DOH calculates the amount forgiven when DOH approves the BORROWER’s Project Completion Report. The amount forgiven will be based on either the LOAN AMOUNT or BORROWER’s ELIGIBLE PROJECT COSTS, whichever is less, and accrued interest. 4.9. RELEASE OF LOAN FUNDS AND REQUIRED DOCUMENTATION DOH will release LOAN funds to BORROWER to reimburse BORROWER for eligible PROJECT costs. To request reimbursement, BORROWER must submit a signed and completed invoice using a form provided by DOH. The invoice must reference the PROJECT activity performed, and include supporting documentation such as bills, invoices, receipts, and documentation of compliance with CONTRACT requirements as requested by DOH. The invoice must signed by an official of BORROWER with authority to bind BORROWER. Invoices must also include a report of the progress made since the last invoice, and the PROJECT status to date. DOH will not release funds until the PROJECT status report and documentation are approved by DOH. Approval will not be unreasonably withheld or delayed. After approving the invoice, documentation, and PROJECT status report, DOH will release funds to BORROWER within thirty (30) days, if BORROWER is not in alleged or actual breach of CONTRACT. DOH will withhold ten percent (10%) of LOAN funds until DOH confirms that BORROWER has successfully completed all steps for PROJECT COMPLETION. The 10% holdback will be available to BORROWER as part of the last LOAN disbursement. 4.10. TIME OF PERFORMANCE BORROWER will begin the activities in the PROJECT within thirty (30) calendar days of the CONTRACT start date. BORROWER will issue a ‘Notice to Proceed’, after the formal award of a construction contract, within eighteen (18) months of the CONTRACT start date. BORROWER must reach PROJECT COMPLETION within the TIME OF PERFORMANCE. If there are extenuating circumstances, BORROWER may request, in writing, at least ninety (90) calendar days prior to the PROJECT COMPLETION that DOH extend the deadline for PROJECT COMPLETION. At its discretion, DOH may issue an extension. DOH’s decision is final and not subject to the dispute clause. If BORROWER does not meet the requirements of this section, it is a breach of CONTRACT, and DOH may terminate or suspend this CONTRACT. 4.11. PROJECT COMPLETION AMENDMENT AND THE PROJECT COMPLETION REPORT The PROJECT Completion Amendment determines the final LOAN AMOUNT and LOAN TERM. When activities in the PROJECT are complete, BORROWER will start the process for the PROJECT Completion Amendment by sending DOH the PROJECT Completion Report. In the PROJECT Completion Report., BORROWER will provide the following information to DOH: A. A statement of the actual dollar amount spent, from all fund sources, to complete the PROJECT. B. A statement that all ELIGIBLE PROJECT COSTS have been incurred. Costs are incurred when goods and services are received and/or contracted work is performed. C. Evidence showing BORROWER’S compliance with financial the audit requirements of this CONTRACT. D. An invoice for the remaining ELIGIBLE PROJECT COSTS. E. Documentation of BORROWER’s compliance with National Historic Preservation Act, 54 USC Subtitle III. 4.12. LOAN PAYMENTS BORROWER must begin repaying the LOAN no later than one (1) year after the CONTRACT start date. Payments are due on the first day of the month(s) shown as the PAYMENT MONTH(S) in the Declarations. Payments are principal and interest accrued up to the PAYMENT MONTH(S). Page 96 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 7 of 31 DWSRF Loan Contract (Municipal) v1 BORROWER can repay in full the LOAN balance, including fees and repayment of LOAN FUNDS for ineligible project costs (if any), at any time or make accelerated payments without penalty. The final payment must be on or before the end of the LOAN TERM. 4.13. LOAN DEFAULT DOH must receive BORROWER’S payment within thirty (30) calendar days of the due date. Late payments are delinquent and assessed a monthly penalty on the first (1st) day past the due date. The penalty is one percent (1%) of the late payment amount per month. Penalty and fees accrue interest at the rate stated as LOAN INTEREST in the Declarations. DOH may notify any other entity, creditors, or potential creditors of BORROWER’s delinquency. BORROWER is responsible for all attorney fees and costs incurred by DOH in any action taken to enforce its rights under this section, including in any alternative dispute resolution proceeding. 4.14. LOAN SECURITY LOAN Security is only required if identified in the Declarations. In its sole discretion and if allowed under the EPA regulations relevant to this Contract, DOH may subordinate its LOAN security to Borrower’s obligations under existing or future bonds and notes. Nothing in this section releases BORROWER from the obligation to make LOAN PAYMENTS when due, and to adjust rates, fees, or surcharges as necessary to meet its obligations under this CONTRACT. 4.15. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS, AND WAIVERS Amendments, modifications, assignments, and waivers to any of the terms of this CONTRACT supersede, if applicable, those terms as found in the original CONTRACT, and are not binding unless they are in writing and signed by representatives authorized to bind each of the parties. Only the authorized representative or their designee has the express, implied, or apparent authority to alter, amend, assign, modify, or waive any terms of this CONTRACT. Neither this CONTRACT nor any claim arising under it may be transferred or assigned by BORROWER without DOH’s prior written consent. During the LOAN TERM, DOH must approve in advance, any change in ownership of the water system(s) improved with LOAN FUNDS. DOH may require the LOAN, including fees and ineligible project costs (if any), be paid in full as a condition of approval. Nothing in this CONTRACT may be waived unless approved by DOH in writing. No waiver of any default or breach is implied from any failure to take action upon such default or breach if the default of breach persists or repeats. Waiver of any default or breach is not a waiver of any subsequent default or breach. 4.16. BUILD AMERICA, BUY AMERICA None of the LOAN funds can be used for the construction, alteration, maintenance, or repair of a public water system or treatment works unless all of the iron and steel, manufactured products, and construction materials used in the project to be produced in the United States (“Build America, Buy America Requirements”) including iron and steel, manufactured products, and construction materials provided by the Contactor pursuant to this Agreement. The Contractor hereby represents and warrants to and for the benefit of the Owner and Funding authority. DOH may waive this requirement if: A. Compliance would be inconsistent with the public interest; or B. The particular products are not produced in the United States in sufficient and reasonably available quantities and are not of a satisfactory quality; or C. Inclusion of products produced in the United States will increase the cost of the overall project by more than twenty-five (25) percent; and D. A waiver is approved by the Environmental Protection Agency (EPA). Page 97 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 8 of 31 DWSRF Loan Contract (Municipal) v1 BORROWER must submit the waiver request to DOH, which will submit it to EPA. The full text of the Build America, Buy America provision can be found under The Infrastructure Investment and Jobs Act ("IIJA"), Pub. L. No. 117-58, which includes the Build America, Buy America Act ("the Act"). Pub. L. No. 117-58, §§ 70901-52. 4.17. ATTORNEYS’ FEES Unless expressly stated under another section of the CONTRACT, each party agrees to bear its own attorneys’ fees and costs for litigation or other action brought to enforce the contract terms. 4.18. BONUS AND COMMISSION PAYMENTS NOT ALLOWED Funds provided under this CONTRACT cannot be used to pay any bonus or commission to gain approval of the loan application or any other approval under this CONTRACT. This section does not prohibit paying for bona fide technical consultants, managerial, or other such services, if payment is for ELIGIBLE PROJECT COSTS. 4.19. COMPLIANCE BORROWER will comply with all applicable federal, state and local laws, requirements, and ordinances for the design, implementation, and administration of the PROJECT and this CONTRACT, including but not limited to those stated in the CONTRACT attachments. BORROWER will provide DOH with documentation of compliance, if requested. In the event of BORROWER’s alleged or actual noncompliance with any part of this CONTRACT, DOH may suspend all or part of the CONTRACT, withhold payments, or prohibit BORROWER from incurring additional obligations of LOAN FUNDS during the investigation and pending corrective action by BORROWER, or a decision by DOH to terminate the CONTRACT. 4.20. DISPUTES Except as otherwise provided in this CONTRACT, when a dispute arises between the parties that cannot be solved by direct negotiation, either party may request a dispute hearing with the Director of the Office of Drinking Water (the Director), who may designate a neutral person to decide the dispute. The parties will be equally responsible for any reasonable costs and fees incurred by the neutral. The party requesting a dispute hearing must: A.Be in writing; B.State the disputed issues; C.State the relative positions of the parties; D.State BORROWER's name, address, and the CONTRACT number; E.Provide contact information for the requester’s representative , and, F.Be mailed to the other party’s (respondent’s) Contract Manager within three (3) working days after the parties agree that they cannot resolve the dispute. The respondent must send a written answer within five (5) working days. In the alternative, the parties can agree to submit a mutual request to the Director, which should include each party’s response to the other party’s characterization of the dispute. The Director or designee will review the written statements and reply in writing to both parties within ten (10) working days. The Director or designee may extend this period if necessary by notifying the parties. The decision on the dispute is non-binding and is not admissible in any succeeding judicial or quasi-judicial proceeding. This non-binding dispute process must precede any action in a judicial or quasi-judicial tribunal. Nothing in this CONTRACT limits the parties from using any mutually acceptable alternate dispute resolution (ADR) method in addition to or instead of the dispute hearing procedure outlined above. 4.21. ELIGIBLE PROJECT COSTS BORROWER will comply with Attachment VI: DWSRF Eligible Project Costs and is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors. Page 98 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 9 of 31 DWSRF Loan Contract (Municipal) v1 The purchase of any land necessary for the PROJECT must be included in the PROJECT and be documented with an appraisal or equivalent market evaluation, if approved by DOH, and a valid purchase and sale agreement. Construction expenses incurred after the date shown as earliest date for construction reimbursement in the Declarations are eligible for reimbursement. Requests for reimbursements for costs related to construction activities will not be accepted until BORROWER has met the following conditions: A.Completed the State Environmental Review Process (SEPA Review under RCW 43.21C); B.Complied with all provisions of the National Historic Preservation Act, 54 USC Subtitle III; C.Complied with Prevailing Wage requirements; D.Received approval from DOH of the project report and related construction documents for all applicable activities described in the PROJECT; and E.Complied with any other LOAN conditions required by DOH. BORROWER cannot use LOAN FUNDS for any expenses charged by BORROWER against any other contract, subcontract, or source of funds. If DOH reimburses BORROWER for costs that are later determined by DOH to be ineligible, BORROWER must repay these funds to DOH no later than when the BORROWER returns the PROJECT Completion Amendment to DOH. Prior to final completion, DOH may withhold payment for such costs as allowed under Section 4.36 RECAPTURE. Repayment is subject to interest retroactive to the date of the applicable disbursement by DOH. 4.22. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM BORROWER warrants that they have not and will not submit to DOH any information that is materially false, incorrect, or incomplete. Providing false, fictitious, or misleading information with respect to the receipt and disbursements of LOAN funds is a basis for criminal, civil, or administrative fines and/or penalties. DOH may also pursue applicable remedies for violations by BORROWER of this section. 4.23. FINANCIAL AUDIT DOH may require BORROWER to obtain an audit of this PROJECT conforming to Generally Accepted Accounting Principles (GAAP). BORROWER will maintain its records and accounts to facilitate the audit. BORROWER is responsible for correcting any audit findings. BORROWER is responsible for any audit findings incurred by its own organization and/or its subcontractors. DOH reserves the right to recover from BORROWER all disallowed costs and INELEGIBLE PROJECT COSTS resulting from the audit. The audit must include a report on compliance, including an opinion (or disclaimer of opinion) about whether the BORROWER is in compliance with laws, regulations and requirements of this CONTRACT that could have a direct and material effect on DOH. BORROWER must send a copy of any required audit per 2 CFR §200.512 to the DOH Contract Manager, no later than nine (9) months after the end of BORROWER’s fiscal year(s). BORROWER must send any audit corrective action plan for audit findings and a copy of the management letter, within three (3) months of the audit report. 4.24. GOVERNING LAW AND VENUE This CONTRACT shall be construed and interpreted according to the laws of the state of Washington, and the venue of any action brought under the CONTRACT will be in the Superior Court for Thurston County. 4.25. HISTORICAL AND CULTURAL REQUIREMENTS BORROWER will not conduct or authorize destructive PROJECT planning activities before completing the requirements of the National Historic Preservation Act, 54 USC Subtitle III. BORROWER will not begin construction activities, ground disturbance, or excavation of any sort, until BORROWER has complied with all requirements of the National Historic Preservation Act of 1966, as amended. If historical or cultural artifacts are discovered during the PROJECT, BORROWER will immediately stop construction and implement reasonable measures to protect the discovery site from further disturbance, take Page 99 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 10 of 31 DWSRF Loan Contract (Municipal) v1 reasonable steps to ensure confidentiality of the discovery site, restrict access to the site, and notify the concerned tribe’s cultural staff or committee, Tribal Historical Preservation Officer (THPO), DOH Contract Manager, and the State's Historical Preservation Officer (SHPO) at the Washington State Department of Archaeology and Historic Preservation (DAHP). If human remains are uncovered, BORROWER will report the presence and location of the remains to the local coroner and law enforcement immediately, then contact the concerned tribe’s cultural staff or committee, DOH Contract Manager, and DAHP. BORROWER is legally and financially responsible for compliance with all laws, regulations, and agreements related to the preservation of historical or cultural sites and artifacts and will hold harmless the state of Washington and DOH in relation to any claim related to historical or cultural sites discovered, disturbed, or damaged as a result of BORROWER’S and BORROWER’s subcontractors activities. BORROWER will include the requirements of this section in all contracts for work or services related to the PROJECT. BORROWER will require that bid documents include an inadvertent discovery plan that meets the requirements of this section. 4.26. INDEMNIFICATION BORROWER agrees to defend, indemnify, and hold harmless DOH and the state of Washington for claims arising out of or incident to BORROWER’S or any BORROWER’S subcontractor’s performance or failure to perform the CONTRACT. BORROWER’S obligation to indemnify, defend, and hold harmless DOH and the state of Washington shall not be eliminated or reduced by any actual or alleged concurrent negligence of DOH or its agents, agencies, employees and officials. BORROWER’S obligation to indemnify, defend and hold harmless DOH and the state of Washington includes any claim by BORROWER’S agents, employees, officers, subcontractors or subcontractor employees. BORROWER waives immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold harmless the state and its agencies, officers, agents or employees. 4.27. INDUSTRIAL INSURANCE COVERAGE BORROWER will comply with the applicable parts of Title 51 RCW, Industrial Insurance. If BORROWER fails to provide industrial insurance coverage or fails to pay premiums or penalties on behalf of its employees as required by law, DOH may collect from BORROWER the full amount payable to the Industrial Insurance Accident Fund. DOH may deduct the amount owed by BORROWER to the accident fund from the amount payable to BORROWER by DOH under this CONTRACT, and transmit the deducted amount to the Washington State Department of Labor and Industries (L&I). 4.28. LITIGATION BORROWER warrants that there is no threatened or pending litigation, investigation, or legal action before any court, arbitrator, or administrative agency that, if adversely determined against BORROWER, would have a materially adverse effect on BORROWER’s ability to repay the LOAN. BORROWER agrees to promptly notify DOH if any above-referenced actions become known to BORROWER during the pendency of the Contract. 4.29. NONDISCRIMINATION BORROWER will not discriminate on the basis of race, creed, color, national origin, families with children, sex, marital status, sexual orientation, age, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability in the performance of this CONTRACT. BORROWER will comply with all federal and state nondiscrimination laws, including, but not limited to Chapter 49.60 RCW, Washington’s Law Against Discrimination and 42 USC 12101 et seq., the Americans with Disabilities Act (ADA), and 40 CFR Part 33 Participation by Disadvantaged Business Enterprises in US EPA Programs . Failure by BORROWER to carry out these requirements is a material breach of this CONTRACT. BORROWER is required to include these non-discriminatory provisions in any contract with a subcontractor. 4.30. PREVAILING WAGE BORROWER will assure that all contractors and subcontractors performing work funded through this CONTRACT comply with prevailing wage laws by paying the higher of state or federal prevailing wages. BORROWER is legally and financially responsible for compliance with the prevailing wage requirements. BORROWER should consult the Page 100 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 11 of 31 DWSRF Loan Contract (Municipal) v1 United States Department of Labor and Washington State Department of Labor and Industries websites to determine the federal and State prevailing wages that must be paid. 4.31. PROCUREMENT BORROWER will comply with all procurement requirements for subcontracting for the PROJECT and for obtaining PROJECT-related goods and services. BORROWER must maintain records to verify compliance with procurement requirements. BORROWER must ensure that all contractors, subcontractors, engineers, vendors, and any other entity for work or services listed in the PROJECT will insert in full, in any contract, the labor standards provisions in Attachment VIII: Labor Standard Provisions for Subrecipients That Are Governmental Entities. 4.32. PROHIBITION STATEMENT Per Section 106 of the federal Trafficking Victims Protection Act, BORROWER `s contractors, subcontractors, engineers, vendors, and any other entity performing work funded by this CONTRACT must comply with and include the following terms and conditions in all contracts for work or services for the PROJECT. “All forms of trafficking in persons, illegal sex trade, or forced labor practices are prohibited in the performance of this award or subawards under the award, or in any manner during the period of time that the award is in effect. This prohibition applies to you as the recipient, your employees, subrecipients under this award, and subrecipients’ employees.” 4.33. PROJECT SIGNS If BORROWER displays, during the TIME OF PERFORMANCE, any signs or markers identifying parties that are providing funds for the PROJECT, BORROWER must include the Washington State Department of Health Drinking Water State Revolving Fund and the Washington State Department of Health as participants in the PROJECT. 4.34. PUBLICITY BORROWER agrees to get prior written consent from DOH’s Contract Manager before publishing or using any advertising or publicity materials that include Washington State or DOH’s name, or includes language that may reasonably infer or imply a connection with either one. 4.35. RATES AND RESERVES BORROWER will maintain reserves at a minimum as required by the Water System Plan or Small Water System Management Plan. BORROWER will timely adopt rate increases and/or capital assessments for the system’s services to provide sufficient funds, along with other revenues of the system, to pay all operating expenses and debt repayments during the LOAN TERM. 4.36. RECAPTURE DOH reserves the right to recapture from BORROWER sufficient funds to compensate DOH for BORROWER’s noncompliance with any part of this CONTRACT, in addition to any other remedies available under the CONTRACT, at law, or in equity. DOH may withhold LOAN FUNDS from BORROWER to recapture such funds. 4.37. RECORDKEEPING AND ACCESS TO RECORDS DOH, its agents, and authorized officials of the state and federal governments will have full access and the right to examine, copy, excerpt, or transcribe, at no additional cost and at all reasonable times, any pertinent documents, papers, records, and books of BORROWER and of persons, firms, or organizations with which BORROWER may contract, involving transactions related to this CONTRACT. BORROWER agrees to keep complete records of its compliance with this CONTRACT for a period of six (6) years from the date that the debt to DOH is paid in full. This includes but is not limited to financial reports. If any litigation, claim or audit is started before the expiration of the six (6) year period, BORROWER must keep the records until all litigation, claims or audit findings involving the records have been resolved. These records retention requirements are in addition to the local government records retention schedules applicable to the BORROWER. Page 101 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 12 of 31 DWSRF Loan Contract (Municipal) v1 4.38. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT (SAM) BORROWER must comply with 48 CFR 52.204-7 to register with the System for Awards Management (SAM.gov). BORROWER is responsible for the accuracy and completeness of its data in the SAM database and any liability resulting from the Government or DOH reliance on inaccurate or incomplete data in it. BORROWER must remain registered in the SAM database. BORROWER should annually review its information in SAM to ensure it is accurate and complete. 4.39. SEVERABILITY If any part of this CONTRACT or part of any document incorporated by reference is found to be invalid, it will not affect the other parts of this CONTRACT that can be given effect without the invalid part. 4.40. SUBCONTRACTING Prior to awarding contracts and/or subcontracts, BORROWER must verify that the complete names of both the selected contractor and the owner or president are not in the Federal Excluded Parties List System for Ineligible Professionals and Debarred Contractors (www.SAM.gov). BORROWER must provide the DOH Contract Manager with a screen printout documenting that neither the firm, the owner or the president are excluded. BORROWER will ensure that every contract and subcontract awarded for the PROJECT after the CONTRACT start date will bind the parties to follow all applicable terms of this CONTRACT. BORROWER is responsible to DOH for noncompliance by its contractors and/or subcontractors. BORROWER’s contracts or subcontracts do not release or reduce the BORROWER’s liability to DOH for any breach in the performance of BORROWER’s duties. BORROWER’s contracts and subcontracts must include a term that the state of Washington and DOH are not liable for claims or damages arising from a contractor and/or subcontractor’s performance or lack thereof. 4.41. SURVIVAL The CONTRACT’s terms, conditions, and warranties that by its sense and context are intended to survive the completion of the performance, cancellation or termination of this CONTRACT, shall so survive. 4.42. TERMINATION FOR CAUSE If DOH concludes that BORROWER has failed to comply with the CONTRACT requirements or has otherwise breached one or more parts of the CONTRACT, DOH may, at its discretion, upon notice to BORROWER, terminate or suspend the CONTRACT and/or its attached agreements in whole or in part. The notice will be in writing and state the reason(s) for termination or suspension, and the effective date. The effective date will be determined by DOH. The notice will allow BORROWER at least thirty (30) business days to cure the breach, if curable. If the breach is not cured or cannot be cured within thirty (30) business days, the outstanding balance of the LOAN, with any interest accrued and other costs as authorized by the CONTRACT shall be due and payable to DOH. If DOH terminates this CONTRACT under this section, DOH is liable only for payment required under the terms of this CONTRACT for ELIGIBLE PROJECT COSTS incurred prior to the effective date of termination. At DOH’s discretion, the termination for cause may be deemed a termination for convenience if DOH determines that the default or failure to perform was outside BORROWER’s control, fault or negligence. The rights and remedies of DOH provided in this CONTRACT are not exclusive and are in addition to any other rights and remedies provided by law. Nothing in this section affects BORROWER’s obligations to immediately repay the unpaid balance of the LOAN as prescribed in the Washington Administrative Code (WAC) 246-296-150. 4.43. TERMINATION OR SUSPENSION FOR CONVENIENCE If funding or appropriation from state, federal, or other sources is withdrawn, reduced, or limited in any way during the TIME OF PERFORMANCE, DOH may: A.Delay or suspend releasing LOAN FUNDS until funding or appropriation are available to DOH; or B.Amend the CONTRACT to reflect the new funding limitations and conditions; or Page 102 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 13 of 31 DWSRF Loan Contract (Municipal) v1 C.Terminate the CONTRACT and/or its attached agreements, in whole or in part; or D.Suspend the CONTRACT and/or its attached agreements, in whole or in part. If DOH terminates the CONTRACT and/or its attached agreements in whole or in part, under this section, DOH will notify BORROWER’s representative in writing of the reason(s) for termination, and the effective date. The effective date will be determined by DOH. DOH may choose to suspend this CONTRACT and/or its attached agreements in whole or in part, if DOH determines that the funding insufficiency will likely be resolved in time for BORROWER to resume activities prior to the end of the TIME OF PERFORMANCE. DOH will notify BORROWER’s representative by facsimile or email of the reason(s) for suspension, and the effective date. DOH will determine the effective date. BORROWER must suspend performance on the effective date of the suspension. During the period of suspension each party must notify the other party’s representative of any conditions that may reasonably affect its ability to resume performance. During the suspension, when DOH determines that the funding insufficiency is resolved, DOH may notify BORROWER’s representative of the proposed date to resume performance. BORROWER must respond to DOH’s representative in writing, within five (5) business days of DOH sending notice, as to whether it can resume performance on that date or offer an alternative date to resume performance. If BORROWER cannot resume performance or the alternative date is not acceptable to DOH, the parties agree the CONTRACT will be deemed terminated for convenience, retroactive to the original date of suspension. If DOH terminates or suspends this CONTRACT, DOH is liable only for payment required under the terms of this CONTRACT for eligible project costs incurred prior to the effective date of suspension or termination. Nothing in this section shall affect Contractor’s obligations to repay the unpaid balance of the LOAN. Nothing in this section affects BORROWER’s obligation to repay the LOAN, including fees and other expenses as allowed by the CONTRACT. 4.44. TERMINATION PROCEDURES When BORROWER receives Notice of Termination or on the date a suspension is converted to a termination, except as otherwise directed by DOH, BORROWER will: A.Stop work under the CONTRACT on the date, and to the extent specified, in the notice; B.Place no further orders or subcontracts for materials, services, or facilities related to the CONTRACT; C.If expressly requested by DOH, assign to DOH any or all of the rights, title, and interest of BORROWER under the orders and subcontracts so terminated, in which case DOH has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts. Any attempt by BORROWER to settle such claims must have the prior written approval of DOH; and D.Preserve and transfer any materials, CONTRACT deliverables and/or DOH property in BORROWER’s possession as directed by DOH. Upon termination of this CONTRACT, DOH will pay BORROWER for amounts due under the CONTRACT prior to the date of termination unless such payment is precluded under any other provision of this CONTRACT. DOH may withhold any amount due as DOH reasonably determines is necessary to protect DOH against potential loss or liability resulting from the termination. DOH will pay any withheld amount to BORROWER if DOH later determines that loss or liability will not occur. 4.45. WORK HOURS AND SAFETY STANDARDS If this CONTRACT exceeds $100,000, BORROWER must comply with the applicable Contract Work Hours and Safety Standards Act (40 USC Chapter 37). These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. Page 103 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 14 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) ATTACHMENT I: SCOPE OF WORK (PROJECT) DWSRF PROGRAM CONSTRUCTION LOAN CONTRACT INFORMATION APPLICATION #2023-4228, CITY OF PASCO, WEST PASCO WTP IMPROVEMENTS PHASES 3 & 4 DWSRF Scope of Work Form: Scope of Work: Project to include: 1.Submit project report and construction drawings to Eastern Regional Office for review and approval. Submit approval letter. 2.Submit bid documents to Eastern Regional Office for review and approval. Submit approval letter. 3.Complete SEPA and submit determination and publication affidavit. 4.Add two 3 MGD pumps and one 6 MGD pump with piping, electrical, instrumentation, and control systems to connect to the existing water system. In addition to costs of construction, costs may include (but are not limited to): engineering, design, construction inspection, hydrogeologic assessment, permits, public involvement, preparation of bid documents, fees, taxes, legal, administrative and audit. Page 104 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 15 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) APPLICATION #2023-4228, CITY OF PASCO, WEST PASCO WTP IMPROVEMENTS PHASES 3 & 4 Project Costs by Cost Category: COST CATEGORY CURRENT ESTIMATES Engineering Report (Preliminary Engineering) $0 Environmental Review $0 Historical Review/Cultural Review $0 Land/ROW Acquisition $0 Permits $0 Public Involvement/Information $0 Bid Documents (Design Engineering) $0 Construction: Estimated Cost. Provide details on following pages. $1,056,655 Contingency: (10% min, 20% max) $105,665 DOH Review/Approval Fees: $0 Sales or Use Taxes $0 Construction Engineering/Inspection $0 Insurance: $0 Audit: $0 Legal: $0 Service Meters (Purchase and Installation) $0 Other: $0 TOTAL ESTIMATED PROJECT COSTS (before Loan Fee) $1,162,320 DWSRF Loan Origination Fee (1%) $11,623 DWSRF Loan Award $1,173,943 Page 105 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 16 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) APPLICATION #2023-4228, CITY OF PASCO, WEST PASCO WTP IMPROVEMENTS PHASES 3 & 4 Project Funding: TYPE OF FUNDING SOURCE CURRENT STATUS Grants and Other Non-Matching Funds Grant #1 $ Grant #2 $ Other Grants $ New Grants $ Total Grants and Other Non-Matching Funds a)$ Loans This Loan Request DWSRF loan (DWL29708-0) $1,173,943 Other Loan #1 DWSRF loan (DWL29303-0) $12,000,000 Other Loan #2 $ Other Loans $ New Loans $ Total Loans b)$13,173,943 Local Revenue Source #1 $ Source #2 $ Other Local Revenue $ New Local Revenue $ Total Local Revenue c)$ Other Funds Other Funds $ Other Funds $ Total Other Funds d)$ TOTAL PROJECT FUNDING e)$13,173,943 Page 106 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 17 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) APPLICATION #2023-4228, CITY OF PASCO, WEST PASCO WTP IMPROVEMENTS PHASES 3 & 4 Engineer’s Certification: The term of this loan will be based on an engineer’s certification of the expected useful life of the improvements, as stated below, or 20 years, whichever is less. If the jurisdiction prefers the term of its loan to be less than either 20 years or the useful life of the improvements, the preferred loan term should be indicated here: __ years. I, _______________________, licensed engineer, certify that the average expected useful life for the improvements described above is __ years. Signed: ____________________________ Name: ____________________________ Date: ____________________________ Telephone: ____________________________ Professional Engineer License Number: _____________ Page 107 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 18 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) ATTACHMENT II: ATTORNEY’S CERTIFICATION DRINKING WATER STATE REVOLVING FUND (MUNICIPAL) I, ________________________________________________, hereby certify: I am an attorney at law admitted to practice in the state of Washington and the duly appointed attorney of BORROWER identified in the Declarations of the Contract identified above; and I have also examined any and all documents and records, which are pertinent to the Contract, including the application requesting this financial assistance. Based on the foregoing, it is my opinion that: 1.BORROWER is a public body, properly constituted and operating under the laws of the State of Washington, empowered to receive and expend federal, state and local funds, to contract with the state of Washington, and to receive and expend the funds involved to accomplish the objectives set forth in its application. 2.BORROWER is empowered to accept the Drinking Water State Revolving Fund financial assistance and to provide for repayment of the loan as set forth in the loan agreement. 3.There is currently no litigation in existence seeking to enjoin the commencement or completion of the above- described public facilities project or to enjoin BORROWER from repaying the Drinking Water State Revolving Fund loan extended by DOH with respect to such project. BORROWER is not a party to litigation, which will materially affect its ability to repay such loan on the terms contained in the loan agreement. 4.Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable to BORROWER. __________________________________ _____________________________ Signature of Attorney Date __________________________________ Name and BAR Number (WSBA No.) _______________________________________________________________________ Address Page 108 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 19 of 31 Attachment III: Federal and State Requirements DWSRF Loan Contract (Municipal) v1 ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS (NOT ALL INCLUSIVE) 1)Environmental and Cultural Authorities a)Archeological and Historic Preservation Act of 1974, Public Law 86-523 as amended b)Clean Air Act, Public Law 84-159 as amended c)Coastal Zone Management Act, Public Law 92-583 as amended d)Endangered Species Act, Public Law 93-205 as amended e)Environmental Justice, Executive Order 12898 f)Floodplain Management, Executive Order 11988 as amended by Executive Order 12148 g)Protection of Wetlands, Executive Order 11990 h)Farmland Protection Policy Act, Public Law 97-98 i)Fish and Wildlife Coordination Act, Public Law 85-624 as amended j)National Historic Preservation Act, 54 USC Subtitle III k)Safe Drinking Water Act, Public Law 93-523 as amended l)Wild and Scenic Rivers Act, Public Law 90-542 as amended m)Washington State Environmental Policy Act, Chapter 43.21C RCW n)Native American Graves Protection and Repatriation Act, Archaeological Resources Protection Act, Revised Code of Washington (RCW) 27.44 regarding Indian Graves and Records; RCW 27.53 regarding Archaeological Sites and Resources; RCW 68.60 regarding Abandoned and Historic Cemeteries and Historic Graves; and Washington Administrative Code (WAC) 25-48 regarding Archaeological Excavation and Removal Permits. Buy America Build America Requirements 2)DWSRF construction projects chosen for FFATA/Equivalency reporting must comply with the Buy America Build America provisions. Projects started prior to May 14, 2022, may be exempt. Visit the EPA website for more information on the BABA requirements and the waiver process at https://www.epa.gov/cwsrf/build-america-buy- america-baba 3)Economic and Miscellaneous Authorities a)Demonstration Cities and Metropolitan Development Act of 1996, Public Law 89-754 as amended, Executive Order 12372 b)Procurement Prohibitions under Section 306 of the Clean air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Ac with Respect to Federal Contracts, Grants, or Loans c)Uniform Relocation and Real Property Policies Act, Public Law 91-646 as amended d)Debarment and Suspension, Executive Order 12549 e)H.R. 3547, Consolidated Appropriations Act, 2014. 4)Social Policy Authorities a)Age Discrimination Act of 1975, Public Law 94-135 b)Title VI of the Civil Rights Act of 1964, Public Law 88-352 c)Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500 (the Clean Water Act) d)Section 504 of the Rehabilitation Act of 1973, Public Law 93-112 (including Executive Orders 11914 and 11250) e)Equal Employment Opportunity, Executive Order 11246 f)Disadvantaged Business Enterprise, Public Law 101-549 (the Clean Air Act), and Public Law 102-389 (the Clean Water Act) g)Section 129 of the Small Business Administration Reauthorization and Amendment Act of 1988, Public Law 100- 590 h)Chapter 49.60 RCW, Washington’s Law against Discrimination, and 42 USC 12101 et seq. the Americans with Disabilities Act (ADA). i)The Contract Work Hours and Safety Standards Act (40 USC 327-333)-Where applicable. j)The Genetic Information Nondiscrimination Act of 2008 (GINA), 42 USC s. 2000ff et seq. 5)State Laws a)Chapter 36.70A RCW, Growth Management Act b)Chapter 39.80 RCW, Contracts for Architectural and Engineering Services c)Chapter 39.12 RCW, Washington State Public Works Act d)Chapter 43.20 RCW, State Department of Health of Health Page 109 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 20 of 31 Attachment III: Federal and State Requirements DWSRF Loan Contract (Municipal) v1 e)Chapter 43.70 RCW, Department of Health f)Chapter 43.155 RCW, Public Works Project g)Chapter 70.116 RCW, Public Water Systems Coordination Act of 1977 h)Chapter 70.119 RCW, Public Water Supply Systems Certification and Regulation of Operations i)Chapter 70.119A RCW, Public Water Systems, Penalties & Compliances j)Chapter 246-290 WAC, Group A Public Water Systems k)Chapter 246-291 WAC, Group B Public Water Systems l)Chapter 246-292 WAC, Waterworks Operator Certification Regulations m)Chapter 246-293 WAC, Water Systems Coordination Act n)Chapter 246-294 WAC, Drinking Water Operating Permits o)Chapter 246-295 WAC, Satellite System Management Agencies p)Chapter 246-296 WAC Drinking Water State Revolving Fund Loan Program q)Chapter 173-160 WAC, Minimum Standards for Construction & Maintenance of Wells r)Title 173 WAC, Department of Ecology Rules s)Title 40 Part 141 Code of Federal Regulations, Federal National Primary Drinking Water Regulations (Section Adopted by Reference) Page 110 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 21 of 31 Attachment IV: DBE Requirements DWSRF Loan Contract (Municipal) v1 ATTACHMENT IV: DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS GENERAL COMPLIANCE, 40 CFR, Part 33 BORROWER must comply with the requirements of Environmental Protection Agency's Program for Utilization of Small, Minority and Women's Business Enterprises (MBE/WBE) in procurement under this Contract, contained in 40 CFR, Part 33.BORROWER will use the directory of certified firms available through the Washington State Office of Minority and Women’s Business Enterprises to meet the requirements. FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D The following are exemptions from the fair share objective Requirements: •Grant and loan recipients receiving a total of $250K or less in EPA financial assistance in a given fiscal year. •Tribal recipients of Performance Partnership Eligible grants under 40 CFR Part 35, Subpart B. o There is a 3-year phase in period for the requirement to negotiate fair share goals for Tribal and Insular Area recipients. •Recipients of Technical Assistance Grants. The Fair Share Objectives or goals for the utilization of disadvantaged businesses negotiated with EPA by the WA Office of Minority Women Business are stated below. Construction 10% MBE 6% WBE Supplies 8% MBE 4% WBE Equipment 8% MBE 4% WBE Purchased Services 10% MBE 4% WBE BORROWER must accept the fair share objectives/goals stated above and purchase the same or similar construction, supplies, services and equipment, in the same or similar relevant geographic buying market as WA Office of Minority Women Business goals. SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C Pursuant to 40 CFR, Section 33.301, BORROWER will make the following good faith efforts whenever procuring construction, equipment, services and supplies under an EPA financial assistance agreement, and to ensure that sub- recipients, loan recipients, and prime contractors also comply. Records documenting compliance with the six good faith efforts shall be retained. The six good faith efforts shall include: A.Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local Government recipients, this will include placing the Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. B.Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date. C.Consider in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, State and Local Government recipients, this will include dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process. D.Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract is too large for one of these firms to handle individually. E.Use the services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Health. F.If the prime contractor awards subcontracts, also require the prime contractor to take the five good faith efforts in paragraphs A through E above. Page 111 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 22 of 31 Attachment IV: DBE Requirements DWSRF Loan Contract (Municipal) v1 MBE/WBE REPORTING, 40 CFR, Part 33, Sections 33.502 and 33.503 BORROWER is required to submit MBE/WBE participation reports to DOH, on a quarterly basis, beginning with the Federal fiscal year reporting period BORROWER receives the award and continuing until the project is completed. CONTRACT ADMINISTRATION PROVISIONS, 40 CFR, Section 33.302 BORROWER agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. BORROWER agrees to require all general contractors to provide forms: EPA Form 6100-2 DBE Subcontractor Participation Form and EPA Form 6100-3 DBE Subcontractor Performance Form to all its Disadvantaged Business Enterprise subcontractors, engineers, vendors, and any other entity for work or services listed in the PROJECT. These two (2) forms may be obtained from the EPA Office of Small Business Program’s website on the internet at http://www.epa.gov/osbp/grants.htm. BORROWER agrees to require all general contractors to complete and submit to BORROWER and Environmental Protection Agency EPA Form 6100-4 DBE Subcontractor Utilization Form beginning with the Federal fiscal year reporting period BORROWER receives the award and continuing until the project is completed. Only procurements with certified MBE/WBEs are counted toward a Contractor’s MBE/WBE accomplishments. BIDDERS LIST, 40 CFR, Section 33.501(b) and (c) BORROWER is also required to create and maintain a bidders list if BORROWER of the loan is subject to, or chooses to follow, competitive bidding requirements. Please see 40 CFR, Section 33.501 (b) and (c) for specific requirements and exemptions. Section 33.501(b) of the rule is as follows: A recipient of a Continuing Environmental Program Grant or other annual grant must create and maintain a bidders list. In addition, a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund also must require entities receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to follow, competitive bidding requirements. The purpose of a bidders list is to provide the recipient and entities receiving identified loans who conduct competitive bidding with as accurate a database as possible about the universe of MBE/WBE and non- MBE/WBE prime and subcontractors. The list must include all firms that bid or quote on prime contracts or bid or quote on subcontracts under EPA assisted projects, including both MBE/WBEs. The bidders list must be kept until the grant project period has expired and the recipient is no longer receiving EPA funding under the grant. For entities receiving identified loans, the bidders list must be kept until the project period for the identified loan has ended. The following information must be obtained from all prime and subcontractors: (1)Entity’s name with point of contact; (2)Entity’s mailing address, telephone number, and e-mail address; (3)The procurement on which the entity bid or quoted, and when; and (4)Entity’s status as a MBE/WBE 1 or non-MBE/WBE. The exemption found at § 33.501(c) is as follows: A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal year, is exempt from the paragraph (b) of this section requirement to create and maintain a bidders list. Also, a recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the paragraph (b) of this section bidders list requirement of this subpart to an entity receiving an identified loan in an amount of $250,000 or less, or to an entity receiving more than one identified loan with a combined total of $250,000 or less in any one fiscal year. This exemption is limited to the paragraph (b) of this section bidders list requirements of this subpart. 1 Qualified Women and Minority business enterprises may be found on the Internet at www.omwbe.wa.gov or by contacting the Washington State Office of Minority and Women’s Enterprises at 360-704-1181. Page 112 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 23 of 31 Attachment V: Certification Regarding Debarment DWSRF Loan Contract (Municipal) v1 ATTACHMENT V: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS United States Environmental Protection Agency Washington, DC 20460 EPA Project Control Number The terms, “covered transaction, debarred, suspended, ineligible, lower tier covered transaction, person, primary covered transaction, principal, and voluntarily excluded”, as used in this attachment, are defined in the rules implementing Executive Order 12549, including 13 CFR § 400.109. You may contact DOH for help getting a copy of these regulations. BORROWER, defined as the primary participant and it principals, certifies by signing below that to the best of its knowledge and belief they: A.Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; B.Have not within a three-year (3) period preceding this CONTRACT, been convicted of or had a civil judgment against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; C.Are not presently indicted for or otherwise criminally or civilly charged by a government entity (federal, state, or local) with commission of any of the offenses described in this attachment; and, D.Have not within a three-year period (3) preceding the signing of this CONTRACT had one or more public transactions (federal, state, or local) terminated for cause or default. Prior to awarding contracts for the PROJECT, BORROWER must verify that neither the contractor’s business name(s) nor the names of its principals are in the Federal Excluded Parties List System for Ineligible Professionals and Debarred Contractors (www.SAM.gov). BORROWER must keep documentation in the PROJECT files and provide a copy to the DOH Contract Manager. BORROWER will include the language below without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: The lower tier contractor certifies, by signing this CONTRACT that neither it nor its principals are debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. I understand that a false statement on this certification may be ground for rejection of this proposal or termination of the award. In addition, under 18 USC Sec. 1001, a false statement may result in a fine or imprisonment for up to 5 years, or both. Typed or Printed Name & Title of Authorized Representative __________________________________________________________________ Signature of Authorized Representative Date I am unable to certify to the above statements. My explanation is attached. Page 113 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 24 of 28 Attachment VI: DWSRF Eligible Project Costs DWSRF Loan Contract (Municipal) v1 ATTACHMENT VI: DWSRF ELIGIBLE PROJECT COSTS Must be directly attributable to the project. 1.The costs for complying with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 2.DWSRF loan fees. 3.The purchase of a portion of another system’s capacity, if it is the most cost effective solution (limited to publicly owned (municipal) systems). 4.Construction of reservoirs (clear wells) that are part of the treatment process and are collocated with the treatment facility. 5.Construction of distribution reservoirs (finished water). 6.Cost associated with restructuring or consolidation of existing water systems by publicly owned water systems. 7.Main extensions to connect to safe and reliable sources of drinking water. 8.Cost associated with collecting and preparing environmental assessment documents to obtain local permits. 9.Direct labor including related employee benefits: a.Salaries and wages (at actual or average rates) covering productive labor hours of employees of the borrower (excluding the administrative organization of the operating unit involved) for periods of time actively or incidentally engaged in pre-design engineering, design engineering, construction engineering, acquisition of rights of way, and the cleaning, sterilization or bacteriological testing of water system components prior to public use. The costs of services rendered by employees generally classified as administration/project management of the loan are considered a direct cost only when such employees are assigned the types of services described above and shall be limited to 3% or less of the project loan amount. b.Employee benefits relating to labor are considered a direct cost of construction projects. The following items may be included as employee benefits: •F.I.C.A. (Social Security) –employer’s share. •Retirement benefits. •Hospital, health, dental, and other welfare insurance. •Life insurance. •Industrial and medical insurance. •Vacation. •Holiday. •Sick leave. •Military leave and jury duty. Employee benefits must be calculated as a percentage of direct labor dollars. The computation of predetermined percentage rates to be applied to current labor costs must be based on the average of total employee benefits and total labor costs for the prior fiscal year and adjusted by known current year variations. c.Other than work identified in Number 9.a, no costs associated with labor performed by the borrower’s employees, including force account work, are eligible for financing assistance. 10.Contract engineering, planning, design, legal, and financial planning services. The Department of Health reserves the right to declare ineligible legal costs that are unreasonable and disproportionate to the project. 11.Contract construction work. 12.Direct vehicle and equipment charges at the actual rental cost paid for the equipment or, in the case of city or county-owned equipment, at the rental rates established by the local government’s “equipment rental and revolving fund” following the methods prescribed by the division of municipal corporations. However, such costs must be charged on a uniform basis to equipment used for all projects regardless of the source of funding. Cities with a population of eight thousand or less not using this type of fund are allowed the same rates as used by the State Department of Transportation. 13.Direct materials and supplies. 14.Other direct costs incurred for materials or services acquired for a specific project are eligible costs and may include, but are not limited to such items as: a.Telephone charges. b.Reproduction and photogrammetry costs. c.Video and photography for project documentation. d.Computer usage. e.Printing and advertising. 15.Other project related costs include: •Competitive Bidding. •Audit. •Insurance. •Prevailing wages. •Attorney fees. •Environmental Review. •Archaeological Survey. Water system plan costs are not eligible for reimbursement. Small water system management program and plan amendments costs are eligible for reimbursement. Projects may be designed to accommodate reasonable growth. This is generally the 20-year projection included in the system’s water system plan or small water system management program. Page 114 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 25 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 ATTACHMENT VII: LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Wage Rate Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) Preamble With respect to the Clean Water and Safe Drinking Water State Revolving Funds, EPA provides capitalization grants to each state which in turn provides subgrants or loans to eligible entities within the state. Typically, the subrecipients are municipal or other local governmental entities that manage the funds. For these types of recipients, the provisions set forth under Roman Numeral I, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients’ compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section 3(ii)(A), below and for compliance as described in Section I-5. Occasionally, the subrecipient may be a private for profit or not for profit entity. For these types of recipients, the provisions set forth in Roman Numeral II, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients’ compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section II-3(ii)(A), below and for compliance as described in Section II-5. I.Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) For Subrecipients That Are Governmental Entities: The following terms and conditions specify how recipients will assist EPA in meeting its Davis-Bacon (DB) responsibilities when DB applies to EPA awards of financial assistance under the FY 2013 Continuing Resolution with respect to State recipients and subrecipients that are governmental entities. If a subrecipient has questions regarding when DB applies, obtaining the correct DB wage determinations, DB provisions, or compliance monitoring, it may contact Department of Health. If a State recipient needs guidance, they may obtain additional guidance from DOL’s web site at http://www.dol.gov/whd/. 1.Applicability of the Davis- Bacon (DB) prevailing wage requirements. Under the FY 2013 Continuing Resolution, DB prevailing wage requirements apply to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by a State water pollution control revolving fund and to any construction project carried out in whole or in part by assistance made available by a drinking water treatment revolving loan fund. If a subrecipient encounters a unique situation at a site that presents uncertainties regarding DB applicability, the subrecipient must discuss the situation with the recipient State before authorizing work on that site. 2.Obtaining Wage Determinations. (a)Subrecipients shall obtain the wage determination for the locality in which a covered activity subject to DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that subcontractors follow the wage determination incorporated into the prime contract. (i)While the solicitation remains open, the subrecipient shall monitor www.wdol.gov weekly to ensure that the wage determination contained in the solicitation remains current. The subrecipients shall amend the solicitation if DOL issues a modification more than 10 days prior to the closing date (i.e. bid opening) for the solicitation. If DOL modifies or supersedes the applicable wage determination less than 10 days prior to the closing date, the subrecipients may request a finding from the State recipient that there is not a reasonable time to notify interested contractors of the modification of the wage determination. The State recipient will provide a report of its findings to the subrecipient. (ii)If the subrecipient does not award the contract within 90 days of the closure of the solicitation, any modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be effective unless the State recipient, at the request of the subrecipient, obtains an extension of the 90 day period from DOL pursuant to 29 CFR 1.6(c) (3) (iv). The subrecipient shall monitor www.wdol.gov on a weekly Page 115 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 26 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 basis if it does not award the contract within 90 days of closure of the solicitation to ensure that wage determinations contained in the solicitation remain current. (b)If the subrecipient carries out activity subject to DB by issuing a task order, work assignment or similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation, the subrecipient shall insert the appropriate DOL wage determination from www.wdol.gov into the ordering instrument. (c)Subrecipients shall review all subcontracts subject to DB entered into by prime contractors to verify that the prime contractor has required its subcontractors to include the applicable wage determinations. (d)As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a subrecipient’s contract after the award of a contract or the issuance of an ordering instrument if DOL determines that the subrecipient has failed to incorporate a wage determination or has used a wage determination that clearly does not apply to the contract or ordering instrument. If this occurs, the subrecipient shall either terminate the contract or ordering instrument and issue a revised solicitation or ordering instrument or incorporate DOL’s wage determination retroactive to the beginning of the contract or ordering instrument by change order. The subrecipient’s contractor must be compensated for any increases in wages resulting from the use of DOL’s revised wage determination. 3.Contract and Subcontract provisions. (a)The Recipient shall insure that the subrecipient(s) shall insert in full in any contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a treatment work under the CWSRF or a construction project under the DWSRF financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in § 5.1 or the FY 2013 Continuing Resolution, the following clauses: (1)Minimum wages. (i)All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Borrower and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. Subrecipients may obtain wage determinations from the U.S. Department of Labor’s web site, www.dol.gov. (ii)(A) The subrecipient(s), on behalf of EPA, shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The State award official shall approve a request for an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1)The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2)The classification is utilized in the area by the construction industry; and Page 116 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 27 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 (3)The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (B)If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), documentation of the action taken and the request, including the local wage determination shall be sent by the subrecipient (s) to the State award official. The State award official will transmit the request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of receipt and so advise the State award official or will notify the State award official within the 30-day period that additional time is necessary. (C)In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the subrecipient(s) do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including the views of all interested parties and the recommendation of the State award official, to the Administrator for determination. The request shall be sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt of the request and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (D)The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii)(B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv)If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (2)Withholding. The subrecipient(s), shall upon written request of the EPA Award Official or an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. (3)Payrolls and basic records. (i)Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing Page 117 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 28 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to the subrecipient, that is, the entity that receives the sub-grant or loan from the State capitalization grant recipient. Such documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29 CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on the weekly payrolls. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s) for transmission to the State or EPA if requested by EPA, the State, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the subrecipient(s). (B)Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1)That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; (2)That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (3)That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C)The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section. (D)The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii)The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the State, EPA or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. (4)Apprentices and trainees-- (i)Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually Page 118 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 29 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii)Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. (5)Compliance with Copeland Act requirements. The Borrower must comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. (6)Subcontracts. The Borrower and/or subcontractor must insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7)Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. (8)Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. Page 119 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 30 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 (9)Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes will be resolved according to the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, the U.S. Department of Labor, or the employees or their representatives. (10)Certification of eligibility. (i)By entering into this contract, Borrower certifies that neither it (nor he or she) nor any person or firm who has an interest in the Borrower’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (ii)No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (iii)The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC 1001. 4.Contract Provision for Contracts in Excess of $100,000. (a)Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in paragraphs (a)(1), (2), (3), and (4) of this section in full in any contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. (1)Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2)Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a)(1) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a)(1) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a)(1) of this section. (3)Withholding for unpaid wages and liquidated damages. The subrecipient, upon written request of the EPA Award Official or an authorized representative of the Department of Labor, shall withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b)(2) of this section. (4)Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a)(1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a)(1) through (4) of this section. (b)In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the Subrecipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Further, the Subrecipient shall insert in any such contract a clause providing hat the records to be maintained under this paragraph shall be made available by the Page 120 of 464 DWL29708-0 Pasco Treatment Plant addl $ 2023-4228 Page 31 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job. 5.Compliance Verification (a)The subrecipient shall periodically interview a sufficient number of employees entitled to DB prevailing wages (covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR 5.6(a)(6), all interviews must be conducted in confidence. The subrecipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on request. (b)The subrecipient shall establish and follow an interview schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. Subrecipients must conduct more frequent interviews if the initial interviews or other information indicated that there is a risk that the contractor or subcontractor is not complying with DB. Subrecipients shall immediately conduct interviews in response to an alleged violation of the prevailing wage requirements. All interviews shall be conducted in confidence." (c)The subrecipient shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that contractors or subcontractors are paying the appropriate wage rates. The subrecipient shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, if practicable, the subrecipient should spot check payroll data within two weeks of each contractor or subcontractor’s submission of its initial payroll data and two weeks prior to the completion date the contract or subcontract. Subrecipients must conduct more frequent spot checks if the initial spot check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In addition, during the examinations the subrecipient shall verify evidence of fringe benefit plans and payments thereunder by contractors and subcontractors who claim credit for fringe benefit contributions. (d)The subrecipient shall periodically review contractors and subcontractors use of apprentices and trainees to verify registration and certification with respect to apprenticeship and training programs approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and (c) above. (e)Subrecipients must immediately report potential violations of the DB prevailing wage requirements to the Department of Health and to the appropriate DOL Wage and Hour District Office listed at https://www.dol.gov/whd/WHD_district_offices.pdf. Page 121 of 464 December 2, 2024 Pasco City Council Regular Meeting Pa g e 1 2 2 o f 4 6 4 DWSRF Additional Loan Agreement – WPWTP Phases 3 and 4 December 2, 2024 Pasco City Council Pa g e 1 2 3 o f 4 6 4 DWSRF Construction Loan Program 3 City of Pasco identified as a recipient on the 2023 DWSRF Project Priority List for WPWTP Phases 3 &4 Maximum amount for 2023-2024 loan award cycle was $12 million per jurisdiction Due to recipient ranking and availability of Bipartisan Infrastructure Law (BIL) funds, the city was awarded an additional $1.17 million beyond the initial $12M loan Pa g e 1 2 4 o f 4 6 4 DWSRF Additional Loan Agreement 4 DWL29708-0 Construction Loan – WPWTP Phase 3 and 4 TOTAL AWARD: $ 1,173,943.00 20-year loan term at 2.25% interest Principal loan forgiveness not included Agreement scope includes Department of Health loan administration Fully funded construction, including CM services and inspection Pa g e 1 2 5 o f 4 6 4 WPWTP DWSRF Loan Contracts - Scope 5 Raw water strainer and membrane filter system capacity upgrades Expansion of chemical treatment and backwash residual solids systems Service pumping system capacity upgrades Pa g e 1 2 6 o f 4 6 4 Questions?Pa g e 1 2 7 o f 4 6 4 AGENDA REPORT FOR: City Council November 26, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Jesse Rice, Director Parks & Recreation SUBJECT: Passenger Railroad National - "Amtrak" No. Resolution 4540 Corporation - Intermodal Transportation Facility Lease Agreement I. REFERENCE(S): Resolution & Proposed Lease Agreement Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: 4540, City the authorizing No. Resolution approve to move I Manager to execute a 10-year Lease agreement between National Railroad Passenger Corporation and the City of Pasco for operating space at the Pasco Intermodal Transportation facility. III. FISCAL IMPACT: Total Ten-Year Term Rent - $410,156.82 IV. HISTORY AND FACTS BRIEF: National Railroad Passenger Corporation, "Amtrak" has leased operating for 1999 since Facility Transportation space Pasco the at Intermodal passenger train service. The most recent lease was initiated with the City in 2009, and consisted on one 5-year initial term, and two optional executed five- year extension terms which has finalized the lease this year. The National Railroad Passenger Corporation indicated their desire to continue the use of the Pasco Intermodal Transportation Facility for passenger train service and requested to enter into a new a lease agreement. Due to age of expired lease the lease agreement required review and updates from both National Railroad Passenger Corporation and the City. The new lease agreement consists of one 10-year term and includes an annual Page 128 of 464 rental term market rate adjustment. Staff worked with the City's real estate representative to identify current market value based on type and square footage of space and determined that the 3% per year increase included in the expired lease was appropriate to apply to the new 10-year term lease. This 3% annual increase is included in the Rent table below. Rent: National Railroad Passenger Corporation shallpay City of Pasco rent for the use of the premises. The rent payment amounts shall be as follows over the life of the agreement: Annual Rent 1st Year of Lease (March 2024 – February 2025) $34,661.64/annual 2nd Year of Lease (March 2025 – February 2026) $35,701.49/annual 3rd Year of Lease (March 2026 – February 2027) $36,772.53/annual 4th Year of Lease (March 2027 – February 2028) $37,875.71/annual 5th Year of Lease (March 2028 – February 2029) $39,011.98/annual 6th Year of Lease (March 2029 – February 2030) $42,593.28/annual 7th Year of Lease (March 2030 – February 2031) $43,871.07/annual 8th Year of Lease (March 2031 – February 2032) $45,187.20/annual 9th Year of Lease (March 2032 – February 2033) $46,542.82/annual 10th Year of Lease (March 2033 – February 2034) $47,939.10/annual For a 10-year total of $410,156.82. V. DISCUSSION: Staff presented this item to Council at the November 25, 2024, Workshop. Staff recommends and requests the approval of the 10-year lease with National Railroad Passenger Corporation for operational space at the Pasco Intermodal Transportation Facility as proposed on the attached draft lease agreement. Page 129 of 464 Resolution – 2024 AMTRAC Lease Agr - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A 10-YEAR LEASE AGREEEMENT BETWEEN NATIONAL RAILROAD PASSENGER CORPORATION AND THE CITY OF PASCO FOR OPERATING SPACE AT THE PASCO INTERMODAL TRANSPORTATION FACILITY. WHEREAS, on March 24, 2009, the City of Pasco (City) and National Railroad Passenger Corporation established a five-year lease agreement which included two additional 5-year lease extensions for passenger service operating space at the Pasco Intermodal Transportation Facility, the “Premises”; and WHEREAS, the current lease and both lease extensions are completed; and WHEREAS, both the City and National Railroad Passenger Corporation desire to establish a new 10-Year Lease agreement for continued operations of National Railroad Passenger Corporation at the Premises; 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 establish a new lease with National Railroad Passenger Corporation at the Premises. 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 Lease between National Railroad Passenger Corporation and the City of Pasco, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute said Lease on behalf of the City of Pasco; and to make minor substantive changes necessary to execute the Lease. Be It Further Resolved, that this Resolution shall take effect immediately. Page 130 of 464 Resolution – 2024 AMTRAC Lease Agr - 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 131 of 464 AMENDED AND RESTATED LEASE AGREEMENT (Pasco, Washington Station) This Amended and Restated Lease Agreement ("Lease") is made and entered into as of this ______ day of _______, 20__ (“Effective Date”) by and between the CITY OF PASCO , a municipal corporation organized under the state of Washington ("Landlord"), and NATIONAL RAILROAD PASSENGER CORPORATION, a corporation organized under 49 U.S.C. § 24101 et seq and the laws of the District of Columbia, ("Amtrak"). BACKGROUND WHEREAS, Landlord owns certain real property in the City of Pasco, located at 535 N. 1st Avenue, Pasco, Washington., which property and the land on which it is located is known as the Pasco Transportation Facility ("Station"), being more particularly shown on Exhibit A attached hereto and incorporated herein; and WHEREAS, Amtrak desires to renew the 2009 agreement to lease a portion of the Station from Landlord, and Landlord desires to lease a portion of the Station to Amtrak, in accordance with Section one (1). . NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the receipt and sufficiency of which is hereby acknowledged, Landlord and Amtrak, intending to be legally bound and incorporating the Background into this Lease, do hereby agree as follows: 1. PREMISES a. Landlord hereby leases to Amtrak 1041 square feet of space in the Station as delineated on the plan attached and incorporated herein as Exhibit A, attached hereto and made a part hereof, ("Premises"). b. Landlord hereby grants to Amtrak, its employees, agents, licensees, contractors, passengers, guests, visitors and invitees, the nonexclusive right in common with Landlord and all others designated by Landlord for the use of the common areas and common facilities in the Station and on the land on which the Station is located. Common areas include sidewalks, plazas, parking areas, driveways, hallways, stairways, elevators, public bathrooms, loading docks, common entrances, lobbies, other public portions of the Property and the pipes, ducts, conduits, wires and appurtenant meters and equipment serving the Premises (collectively "Common Areas"). The Station, the land on which the Station is located, the Premises and the Common Areas are collectively referred to herein as the “Property”. 2. TERM a. The initial term of this Lease shall be for ten (10) years ("Term") commencing March 1, 2024, ("Commencement Date"). The Term will end ten (10) years thereafter, unless (i) sooner terminated (a) by Amtrak giving sixty (60) days advance written notice to Landlord that Amtrak's rail passenger service to Pasco will relocate or cease, (b) in the event Amtrak’s funding for the Premises is reduced or ceases to exist, as determined in its sole discretion, or (ii) extended by Amtrak as provided herein. b. Amtrak may terminate this lease prior to the expiration by giving the Landlord sixty (60) days advance notice of their intent to terminate the lease. 3. RENT AND OTHER CHARGES Page 132 of 464 Rent during the first year of the Term shall be Thirty-Four Thousand Six Hundred Sixty- One Dollars and sixty-four cents ($34,661.64). Rent shall increase automatically each year on the anniversary date of the Commencement Date by an amount equal to three percent (3%) of the rent for the immediately preceding year. Provided that Landlord complies with its obligations hereunder and subject to any rights of setoff hereunder, Amtrak shall pay rent in monthly installments on the first day of each month. 434. PERMITTED USE All areas of the Property, including within the Common Areas, will be available for Amtrak to use. Amtrak may occupy and use the Premises for any lawful purpose reasonably related to the operation of a passenger rail station including but not limited to ticketing, waiting area for passengers, restrooms, loading and unloading of passengers, mail, packages, non- exclusive parking area and baggage, office and mechanical and/or engineering facilities and all other operations incidental to Amtrak’s business, including, without limitation, incidental operations include retail use for the convenience of Amtrak’s passengers such as newsstands, coffee stands, ATMs and beverage and snack vending machines (collectively, the “Permitted Use”). 5. HOURS OF OPERATION Amtrak shall have the right to keep the Premises open at all such times as it desires. In the event Station is not staffed by either bus operations or Amtrak, the Station will close and be inaccessible to the public. 6. 7.6.UTILITIES Landlord shall make all arrangements and installations for the provision of, and pay for all utilities necessary for, Amtrak’s occupancy and Permitted Use of the Premises. If Landlord has made arrangements for and installed and paid for such utility lines and has caused the Premises to be individually sub-metered to measure the actual utility consumption of a utility by Amtrak, Amtrak shall pay for the costs of such actual utility consumption directly to the providing utility. 8.7. 9.8. SIGNS Amtrak's business signs, including all signs designed, erected, placed or maintained by Amtrak, or allowed to be erected, placed, or maintained by it, on the Property prior to the Commencement Date ("Existing Signs") are deemed approved by Landlord. Amtrak may (a) keep and maintain Existing Signs on the Property throughout the Term of this Lease, and (b) replace any or all Existing Signs with new signs of similar content when such replacement is warranted in Amtrak's sole discretion (any such replacement signs shall be deemed Existing Signs). Prior to replacing any Existing Signs with signs of substantially different content or erecting or installing any signs in addition to Existing Signs, Amtrak must notify Landlord of its intention to do so. Amtrak shall not erect or install any sign in the Station in violation of any applicable law, ordinance, rule or regulation of any governmental agency. 10.9. MAINTENANCE. REPAIR AND SERVICES a. Except as otherwise specifically provided herein, Landlord, at its sole cost and expense, shall be responsible for the maintenance, repair and upkeep of the Property, including the Page 133 of 464 maintenance, repair, replacement and alteration of the interior and exterior of the Station and all fixtures, equipment, components and systems that are a part of the Station or necessary to and for the operation of the Station and Amtrak’s use and occupancy of its Premises, including structural and roof repairs and maintenance and exterior landscaping, paving and maintenance. b. Landlord shall pay all costs, expenses, fees, taxes, and sums related to its ownership, operation, and maintenance of the Station before delinquency. c. Landlord shall provide at its at its sole cost and expense: (i) Heating, ventilation and air conditioning ("HVAC") for the Station, including the Premises, during all hours of scheduled passenger train (and bus) operations, to maintain temperatures in the interior portions of the Station at commercially reasonable levels, provided that in no event shall Landlord maintain heating settings below 68 degrees DB or air conditioning settings above 72 degrees DB. 50 % relative humidity, as appropriate, depending on the outside weather conditions. Throughout the Term, Amtrak shall keep a current written schedule of Amtrak passenger train (and bus) operations online. Landlord may stop the heating and cooling systems, when necessary, by reason of accident or emergency or for repairs, alterations, replacements or improvements, which, in the reasonable judgment of Landlord, are desirable or necessary. Landlord agrees to make any necessary repairs, alterations, replacements, or improvements to the heating and cooling systems as quickly as possible, with due diligence, and with the minimum interference with Amtrak’s use of the Premises. (ii) Janitorial services to the Property (including the Premises) as specified in Exhibit C; (iii) Hot and cold water sufficient for drinking, lavatory, toilet and ordinary cleaning purposes to be drawn from approved fixtures in the Premises or Common Areas; (iv) Electricity to the Premises in quantities necessary for Amtrak's purposes and use permitted hereunder and lighting of uniform illumination of an intensity equal to no less than 50 footcandles. (v) Replacement of lighting tubes, lamp ballasts, starters and bulbs; (vi) Extermination and pest control as often as may be deemed necessary in the exercise of prudent management practices for a public transportation facility. To the greatest extent possible, such work shall be performed at times other than when passenger train and bus operations are scheduled; (vii) Maintenance, cleaning and upkeep of Common Areas in a first-class manner. Such maintenance shall include without limitation cleaning as specified in Exhibit C, HVAC, illumination, repairs, replacements, lawn care and landscaping; (viii) A building manager or engineer capable of responding to Amtrak's requests for service within two (2) hours during all times when Amtrak’s passenger train (and bus) operations are scheduled. d. Landlord shall cause all utilities (including but not limited to electricity, water, and sewer) to be supplied to the Property in quantities sufficient for the operation of a first- class transportation facility, including the provision of such utilities to the Premises at levels and in amounts sufficient for Amtrak’s Permitted Use. e. Amtrak shall be responsible for the maintenance and repair of any trade fixtures, equipment or other personal property of Amtrak located on or within the Premises and charges for any services for Amtrak’s sole use and benefit arranged for by Amtrak separately from the services provided by or to be provided by Landlord under this Lease. f. Notwithstanding anything to the contrary in this Lease, if Landlord fails in any of its obligations under this Section7, and such failure continues for more than three (3) consecutive days after notice from Amtrak of such failure, Amtrak may provide any such maintenance, repairs and services or arrange for the provision of such. In the event Amtrak provides any such maintenance, repairs or service, at Amtrak’s sole option, Amtrak may offset the reasonable cost and expense of such maintenance, Page 134 of 464 repairs or service from the installment or installments of rent next due or bill Landlord for such cost and expense in which event Landlord shall reimburse Amtrak for the cost and expense of such maintenance, repairs and services within forty-five (45) days of Amtrak’s billing for such cost and expense. Upon request of Landlord, Amtrak shall supply Landlord with verification of all costs. 11.10. CCTV Ownership, control and maintenance of Landlord’s CCTV system will remain with Landlord. Landlord may make improvements to the system and will make reasonable efforts to provide notice to Amtrak prior to the implementation of the improvements. Landlord will allow Amtrak personnel access to security feeds, information, recordings, video and such other data and information from the CCTV equipment, at no cost or maintenance fees, and Amtrak police and others may share such information with law enforcement. Amtrak, at its sole cost and without Landlord consent, may install additional equipment and materials necessary to direct the rail operations or rail signals. If Amtrak chooses to make security Improvements, Amtrak may enter in, on, over, through and upon any property of Landlord to obtain access in order to make the Security Improvements. Landlord shall not alter or remove any alterations or improvements made by Amtrak to the Property during the Term or as long as Amtrak occupies the Premises or uses the Station, without prior written approval of Amtrak, which approval may be withheld by Amtrak in its sole and absolute discretion. 12.11. ALTERATIONS AND IMPROVEMENTS Amtrak shall have the right to make alterations and improvements to the Premises subject to the following terms and conditions: a. No alterations or improvements made by Amtrak shall in any way impair the structural stability of the Premises. b. Amtrak shall request Landlord’s approval prior to making any alterations or improvements and all alterations or improvements must be approved in writing by Landlord. Landlord’s approval shall not be unreasonably withheld, conditioned or delayed. c. Amtrak shall keep the Premises and every part of the Station free and clear of any mechanic's lien or materialmen's liens arising out of the construction of any such alterations or improvements and further agrees to hold Landlord harmless from any liability or liens therefor. d. All alterations and improvements that are permanently affixed to the Station shall become the property of the Landlord and shall remain on and be surrendered with the Premises at the expiration or sooner termination of this Lease or any extension of the Term of this Lease. e. Amtrak’s personal property and its trade fixtures, including machinery, equipment, and furnishings, shall remain the property of Amtrak and may be removed by Amtrak at any time during the Term or upon the expiration or sooner termination of this Lease (including any extension term). Amtrak shall repair any damage to the Premises or Station caused by Amtrak's removal of its personal property, trade fixtures, or equipment, but Amtrak shall have no obligation to remove such items from the Station at any time. 13.12. INSURANCEA AND INDEMNIFICATION a. PROPERTY INSURANCE. Amtrak shall maintain throughout the Term, at its sole cost and expense, a policy or policies of insurance for the mutual benefit of Landlord and Amtrak, against Page 135 of 464 loss or damage to Amtrak’s personal property and leasehold improvements on the Premises in the amount of ful1 replacement cost thereof, against any perils included within the classifications of fire, vandalism, explosion, malicious mischief, special extended perils (all risk) and any risk covered by the so-called Extended Coverage Endorsement (including leasehold improvements). Such policy shall be written by a company reasonably acceptable to Landlord and shall provide that the same may not be canceled except upon 30 days prior written notice to Landlord and Amtrak shall furnish to Landlord a certificate with respect thereto in connection with such policy. b. PUBLIC LIABILTIY. Amtrak shall purchase and maintain commercial general liability insurance against claims for injury or death to persons or damage to property occurring on or about the Premises with minimum limits of liability of $2,000,000 combined single limit for each occurrence. Such insurance shall include but not be limited to bodily injury, liability, personal injury, liability, property damage liability, broad form property damage liability, contractual liability, and products/completed operations liability as follows at its sole expense. Said insurance shall list the Landlord as additional insured, shall be with insurance companies reasonably acceptable to Landlord, and Amtrak shall provide certificates of insurance to the Landlord evidencing said insurance. c. SELF INSURANCE. Amtrak represents to Landlord and Landlord acknowledges that Amtrak self-insures in the ordinary course of its business (but the right to self-insure shall not apply to if any subtenant, licensee, assignee or Permitted Transferee of Amtrak, each of whom must comply with the requirements of subsections 9.a.and 9.b. above). d. LANDLORD INSURANCE. During the term of this lease, Landlord shall keep and maintain the following types of insurance: 1. PROPERTY INSURANCE. Insurance on the Station or any replacements or substitutions therefore against loss or damage by fire, earthquake, vandalism and other risks now insured against by "extended coverage" provisions of policies generally in force, in amounts sufficient to provide coverage in an amount of not less than one hundred percent of the full replacement cost of the Station and improvements which are part thereof, as such cost may be prudently redetermined from time to time. 2. COMMERCIAL GENERAL LIABILTY INSURANCE. Commercial general liability insurance covering liability imposed upon Landlord with respect to its ownership, occupancy and Permitted Use of the Station, with limits of liability of not less than Two Million Dollars ($2,000,000) for bodily injury (including disease or death), personal injury and property damage. e. INDEMNITY. 1. Landlord agrees to release, and to the extent permitted by law, Landlord agrees to indemnify, defend and save harmless Amtrak, its officers, directors, employees, agents, servants, successors, assigns and subsidiaries, from any and all claims, demands, costs and expenses of every kind whatsoever, arising from Landlord’s failure to comply with any of Landlord’s obligations contained under this Lease, or arising solely out of Landlord’s ownership of the Station or both. 2. Except as provided in Subsection 9.e.1 above, and to the extent permitted by law, each party agrees to release, indemnify, defend and save the other party harmless from any and all claims, demands, costs and expenses of every kind whatsoever including reasonable attorney's fees for the defense thereof, arising from the indemnifying party's wrongful act or negligence in or about the Premises. In case of any action or proceeding brought against either party by reason of any such claim, upon notice from such party, the indemnifying party covenants to defend such action or proceedings by counsel reasonably satisfactory to the other party, unless such action or proceeding alleges the joint or concurring Page 136 of 464 wrongful act(s) or negligence of both parties, in which case both parties shall jointly agree on counsel and share in the defense of such action or proceedings in proportion to their degree of their respective wrongful act(s) negligence as determined by a court of competent jurisdiction, including all applicable appeals. 14.13. DAMAGE OR DESTRUCTION In the event of destruction, or substantial damage, to the Premises during the Term of this Lease which renders the Premises unusable to Amtrak, in Amtrak’s sole discretion, Landlord shall have the option of: a. Within one hundred eighty (180) days after such damage or destruction, replacing or rebuilding the Station, including the Premises, and in such manner and according to such plans and specifications which would restore the Station, including the Premises, to substantially the same condition as immediately before its destruction or substantial damage, in which event Landlord shall provide suitable temporary facilities while such replacement or rebuilding is ongoing; or b. Declining to replace or rebuild, in which event Amtrak shall have the option of terminating this Lease Agreement by written notice. c. Landlord shall notify Amtrak within thirty (30) days after such damages or destruction of Landlord decision to rebuild the Station including the Premises or declining to rebuild. During the 180-day repair or replacement period identified in Subsection (a) above, Amtrak shall have no obligation to: (1) Pay any rent or other costs or expenses associated with the Station, including the Premises, required under this Lease; or (2) Provide any services including janitorial services to the Premises required under this Lease. 15.14. EMINENT DOMAIN Eminent domain proceedings resulting in the condemnation of part of the Premises herein that, in Amtrak’s sole opinion, leave the remaining portion usable by Amtrak for purposes of the business for which the Premises are leased will not terminate this Lease Agreement. If Amtrak, in its sole opinion, determines that the remaining portion is not usable by Amtrak, Amtrak may terminate this Lease by giving written notice of termination to Landlord no more than ninety (90) days after the notice of condemnation or taking. The effect of such condemnation, should Amtrak not terminate this Lease, will be to terminate this Lease Agreement as to the portion of the Premises condemned and leave it in effect as to the remainder of the Premises, and the Rent and all other expenses provided for herein shall be adjusted accordingl y. Compensation awarded as a result of such condemnation shall be that of Landlord, except to the extent that part of the award is allocated as damages to fixtures on the Station which were furnished by Amtrak, damages for the value of Amtrak’s leasehold estate or relocation expenses for Amtrak. 12. ACCEPTANCE Amtrak hereby acknowledges that when it occupies the Premises it shall be deemed to have received the Premises in good order and condition unless Amtrak notifies Landlord of defects or problems with the Premises within one (1) year after Amtrak takes occupancy. If Amtrak notifies Landlord as aforesaid, Landlord shall correct and repair any defects or problems identified by Amtrak within thirty (30) days after the date of the notice. 13. SUBLEASE AND ASSIGNMENT Page 137 of 464 a. Amtrak shall not assign or sublet the whole or any part of the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned, provided that, notwithstanding anything to the contrary in this Lease, Amtrak may not sublease, assign, or otherwise transfer any interest in this Lease or the Premises to any local or regional bus service provider without Landlord’s prior consent, which shall not be reasonably withheld, if, at the time its consent is requested, local or regional bus service is not being provided from the Station. If Landlord grants consent, each permitted transferee shall abide by all the terms and conditions hereunder. Nothing herein shall be deemed in any way to limit, restrict or otherwise affect Amtrak’s right to contact with third parties with regard to any matters other than the use of the Premises by such third parties. This provision requiring Landlord’s consent shall not apply, and Amtrak shall be permitted to assign or sublet to any entity whose management and operation is indirectly or directly controlling, controlled by or under common control with Amtrak or if such assignment or subletting is due to or arises out of any judicial or legislative action or mandate, and any such transfers shall not be deemed an assignment or subletting. b. Amtrak shall have the right to sublet or license the use of space within the Premises for the uses and purposes set forth in the following sentence without obtaining the prior written consent of Landlord and retain any revenue from such subleases and licenses. Such sublets and licenses may include, but will not be limited to, agreements for newsstands, concessions, coin operated vending machines, telephones, automated teller/ticketing machines, ATM' s, direct telephone line connections for local hotel, restaurants, entertainment, sports and convention centers and car rentals. 14. DEFAULT BY AMTRAK The failure of Amtrak to perform substantially or keep or observe any of the terms, covenants and conditions which it is obligated to perform, keep or observe under this Lease Agreement within thirty (30) days after written notice from Landlord identifying the specific term, covenant, or condition and requesting Amtrak to correct or to commence correction for any such deficiency or default or such longer time period if the correction cannot be completed within said 30 days, provided that Amtrak has commenced such correction, shall constitute an "Event of Default" by Amtrak. 15. RIGHTS OF LANDLORD AFTER DEFAULT BY AMTRAK a. If an Event of Default by Amtrak occurs, as provided in Section 14, Landlord shall have the right (unless otherwise specified in the termination notice), in addition to any rights of the Landlord at law or in equity and after written notice to Amtrak, to terminate this Lease and enter and take possession of the Premises and expel, oust and remove any and all parties who may occupy any portion of the Premises, all in accordance with all applicable laws and procedures. b. In case of any termination, re-entry, and/or dispossession by the Landlord in accordance with lawful proceedings: (1) The Rent which is due and owing up to the time of termination, re -entry or other dispossession shall become due thereupon and be paid up to the earlier of (a) the time of such termination or (b) upon reentry, dispossession or expiration: and (2) Landlord may relet the Premises or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may at Landlord’s option be less than or exceed the period which would otherwise have constituted the balance of the Term of the Agreement. 16. LANDLORD'S DEFAULT In the event Landlord fails to perform any covenant or obligation required to be performed under this Lease, and such failure continues for more than thirty (30) days after notice from Amtrak identifying such failure, such failure shall constitute an "Event of Default" by Landlord. If an Event of Page 138 of 464 Default by Landlord occurs, Amtrak, at its sole option and discretion, may: (l) perform such covenant or obligation on behalf of Landlord in which event the Landlord shall reimburse Amtrak all costs and expenses associated with Amtrak’s performance (including attorney's fees) within twenty (20) days after Amtrak presents an invoice to Landlord for such performance; (2) terminate this Lease; or (3) pursue any and all rights and remedies available at law or in equity. 17. QUIET ENJOYMENT If and so long as Amtrak shall keep all the covenants and agreements required by it to be kept under this Lease, Landlord covenants and agrees that it and anyone claiming by through or under Landlord shall not interfere with the peaceful and quiet occupation and enjoyment of the Premises by Amtrak. 18. RIGHT OF ENTRY UPON PREMISES Landlord and its agents and employees shall have the right to enter upon the Premises, if accompanied by an Amtrak employee, to inspect the same to determine if Amtrak is performing the covenants of this Lease, on its part to be performed, to post such reasonable notices as Landlord may desire to protect its rights, and to perform service and maintenance pursuant to its obligations under this Lease. 19. TAXES Pursuant to 49 U.S.C. §24301(1), Amtrak is exempt from all state and local taxes, surcharges, or fees and Amtrak shall not be liable for the payment of any such taxes, surcharges or fees in connection with this Lease. 20. COMPLIANCE WTH LAWS. ORDINANCES. AND RULES Amtrak agrees to conform to and not violate any applicable laws, ordinances, rules, regulations, and requirements of federal authorities now existing or hereinafter created affecting Amtrak’s use and occupancy of the Premises. Landlord agrees to conform and comply with all applicable laws, ordinances, rules, regulations and requirements of federal, state, county or other governmental authorities and various departments there of now existing or hereinafter created regarding Landlord’s ownership and maintenance of the Station, including compliance with the Americans with Disabilities Act. Nothing in this Lease shall be interpreted as making Amtrak a responsible party for purposes of accessibility requirements under the Americans with Disabilities Act. Landlord hereby agrees to comply with all applicable laws, ordinances, rules, regulations and requirements of Federal, state, local, or other governmental or quasi-governmental authorities now existing or hereafter created in connection with the ownership, leasing, maintenance, repair and use of the Station and the Property including, without limitation, the ADA, the Rehabilitation Act and the Human Trafficking Prevention Act of 2022. Such compliance shall include, without limitation, present or future requirements from any governmental or quasi- governmental authority including but not limited to the Federal Railroad Administration (“FRA”) pursuant or relating to grants, mortgages or other funding requirements that such authority has with Amtrak. c. Landlord represents and warrants that as of the Commencement Date, the Station, the Property and all improvements thereon (whether previously existing or newly Page 139 of 464 constructed) are and shall thereafter be maintained, repaired and operated in accordance with all applicable statutes, laws, rules, regulations, ordinances, codes, and standards, including without limitation, the following: (i) the ADA; (ii) the Rehabilitation Act; (iii) the Human Trafficking Prevention Act of 2022; and (iv) Amtrak’s safety, security, operations and engineering standards appliable to rail passenger stations. d. If any noncompliance with any applicable statutes, laws, rules, regulations, ordinances, codes or standards is found to exist during the Term, Landlord shall, at its sole cost and expense, make repairs, replacements or alterations necessary to comply with such applicable statutes, laws, rules, regulations, ordinances, codes or standards as budget permits or City Council approves funding. e. If Landlord plans to perform work on the Station platform(s), and such work requires approval by the FRA under 49 CFR 37.42(d), then Landlord shall provide Amtrak with its boarding plan before any platform work has begun. Amtrak shall recommend any modifications which it deems appropriate and shall submit the final plans to the FRA for its review and approval. 21. CONDITION OF PREMISES UPON SURRENDER When Amtrak vacates the Premises at the expiration of the Term or earlier termination of this Lease, whichever occurs first, Amtrak shall leave the Premises in the same condition as when Amtrak received possession, ordinary wear and tear, damage by fire or other casualty, or condemnation excepted and as may be altered, modified or improved in accordance with the terms of this Lease. 22. NON-WAIVER Any waiver of any breach of covenants or conditions herein contained to be kept and performed by either party shall be effective only if in writing and shall not be deemed or considered as a continuing waiver. Any waiver shall not operate to bar or prevent the waiving party from declaring a forfeiture or exercising its rights for any succeeding breach of either the same or other condition or covenant. 23. PARTNERSHIP DISCLAIMER It is mutually understood and agreed that nothing in this Lease is intended or shall be construed in any way as creating or establishing the relationship of partners or joint ventures between the parties hereto, or as constituting Amtrak as an agent or representative of Landlord for any purpose or in any manner whatsoever. 24. PARTIES BOUND Except as otherwise specifically provided in this Lease, this Lease shall bind and inure to the benefit of the parties hereto and their respective administrators, legal representatives, successors and assigns. 25. NOTICES Notices given under the terms of this Lease must be in writing and shall be deemed properly served if such notice is hand delivered or mailed by certified mail, return receipt requested, or sent by an established overnight commercial courier for delivery on the next business day with delivery charges Page 140 of 464 prepaid, addressed to the other party at the following address, or such other address as either party may, from time to time, designate in writing: If to Landlord: If to Amtrak: City Manager National Railroad Passenger Corporation City of Pasco 30th Street Station, 5th Floor South PO Box 293 Philadelphia, PA 19104 Pasco, WA 99301 Attn: Director, Real Estate Development Notice mailed in accordance with the provisions hereof shall be deemed to have been given as to the date of hand delivery or the third business day following the date of such mailing, whichever is earlier. 26. LEGAL CONSTRUCTION In the event any one or more of the provisions contained in this Lease Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Lease Agreement shall be construed as if such invalid, illegal or unenforceable provision has never been contained herein. This Agreement and the rights and obligations of the parties hereto shall be governed and construed in accordance with the laws of the State of Washington. All suits, actions, claims and causes of action relating to this Agreement shall be brought in the United States District Court for the district in which the Station is located. 27. DISPUTE RESOLUTION In the event of a dispute regarding the terms of this lease, the parties shall first meet (either in person or by telephone) in a good faith effort to resolve such dispute. In the event a dispute remains, each party may pursue any and all rights and remedies available to such party at law. 28. TIME OF ESSENCE, BINDING UPON HEIRS, ETC. Time is of the essence of each and all the terms and provisions of this Lease and the terms and provisions of this Lease Agreement shall extend to and be binding upon and inure to the benefit of the administrators, successors and assigns of the respective parties hereto. 29. NUMBER AND GENDER All words used herein in the singular number shall include plural and the present tense shall include the future, and the masculine gender shall include the feminine and neutral. 30. ENTIRE AGREEMENT This Lease contains the sole and only agreement of the parties. Any prior agreements, promises, negotiations or representations not expressly set forth in this Lease are of no force or effect. 31. LANGUAGE CONSTRUCTION Page 141 of 464 The language of each and all paragraphs, terms, and/or provisions of this Lease shall, in all cases and for any and all purposes, and any and all circumstances whatsoever, be construed as a whole, according to its fair meaning, and not for or against any party hereto and with no regard whatsoever to the identify or status of any person or persons who drafted all or any portion of this Lease. 32. HOLDING OVER If Amtrak shall hold over the Premises, after expiration of the Term or any extension thereof, such holding over shall be construed to be only a tenancy from month to month subject to all of the covenants, conditions and obligations contained in this Lease provided, however, that nothing in this paragraph shall be construed to give Amtrak any rights to so hold over and to continue in possession of the Premises without the consent of Landlord. 33. AMENDMENT This Lease, including any exhibits hereto, shall not be amended, except in writing signed by the parties. Any amendment or addendum to this Lease shall expressly refer to this Lease. SALE OF THE STATION/NON DISTURBANCE Landlord and all succeeding landlords agree that they shall not sell, transfer, assign or in any manner dispose of or change ownership or control of the Property without the prior written consent of Amtrak, which consent may be withheld in Amtrak’s sole and absolute discretion. Such consent shall be subject to, inter alia, the new landlord, controlling party or owner agreeing in writing to be bound by all of the provisions of this Lease and Amtrak’s rights shall be reflected in the deed for the Station. A memorandum of this Lease may be recorded by Amtrak in the recorder of deeds office for the ________________. This Lease shall not be subordinate to any other liens, mortgages or encumbrances unless such owner or holder of the lien, mortgage or other encumbrance signs a nondisturbanceno disturbance agreement approved by Amtrak, in its sole and absolute discretion, prior to any disposition of the Station. 36. AUDIT RIGHTS Amtrak, its Office of Inspector General, and the FRA, their respective agents, designees and accountants shall have the right at any time or from time to time for up to five (5) years after the expiration or earlier termination of this Lease, and final payments of all sums due hereunder are made, and with prior notice to Landlord, to make any examination, inspection or audit of Landlord’s books and records which relate in any way to the Station, the Premises, this Lease, or to any payments of any sums of money due or paid pursuant to this Lease, the Premises or the Station. If it is determined that any charges paid by Amtrak have, in error, been underpaid or overpaid, then: (a) the party that has been underpaid shall be reimbursed the amount of such underpayment by the other party; or (b) the party that has been overpaid shall refund the amount of such overpayment to the other party. Nothing in this Lease shall be construed to limit the rights, obligations, authority, or responsibilities of Amtrak’s Office of the Inspector General pursuant to the Inspector General Act of 1978, as amended, including the right to seek information by subpoena. Page 142 of 464 37. STATUTORY AND DEED RIGHTS a. Amtrak has been afforded certain statutory rights. Prior to entering into any agreement with a third party to convey all or a portion of the Property, Landlord shall notify Amtrak. Upon receipt of such notice, Amtrak may submit to Landlord for inclusion into any sales agreement and deed of conveyance for all or a portion of the Property, language that preserves Amtrak’s rights to use the Station. Landlord shall not convey the Property unless (i) Amtrak waives the requirements of this Section or (ii) Landlord includes in any sales agreement and deed or other instrument to convey all or a portion of the Property language that Amtrak approves preserving Amtrak’s rights to use the Station. b. Nothing herein shall waive any rights benefiting Amtrak whether statutorily granted, in the land records for the Property or granted pursuant to other means. Any provision in this Lease that Amtrak has voluntarily agreed to that is inconsistent with any statutory or other rights of Amtrak to which is not intended to be a waiver of such rights by Amtrak, and such rights may be exercised by Amtrak at any time. c. The termination of this Lease is not intended to be a termination of nor will it constitute a termination of any rights granted to Amtrak pursuant to the land records for the Property or any statute or by any other means. The rights and obligations of the parties in this Section 37 shall survive the expiration or termination of this Lease. 38. HUMAN TRAFFICKING PREVENTION Landlord shall use its best efforts to prevent, recognize and report potential human trafficking violations that occur in the Station, in compliance with all applicable federal, state and local laws, including but not limited to the Human Trafficking Prevention Act of 2022 which requires Landlord to post contact information for the national human trafficking hotline in the public restrooms of the Station. 39. COUNTERPARTS This Agreement may be executed in multiple counterparts, each of which shall be deemed an original agreement and both of which shall constitute one and the same agreement. The counterparts of this Agreement may be executed and delivered by PDF, facsimile or other electronic signature by email transmission by the parties. Receiving parties may rely on the receipt of such document so executed and delivered electronically or by facsimile as if the original has been received. No party shall contest the admissibility or enforceability of the electronically signed copy of the Agreement in any proceeding arising out of the terms and conditions of this Agreement. GOVERNING LAW This Lease shall be governed by and construed under the laws of the District of Columbia and any legal proceedings hereunder shall be adjudicated in the United States District Court for the District of Columbia. Page 143 of 464 [signatures on following page] IN WITNESS WHEREOF, the undersigned have caused this Agreement to be signed by their authorized representatives, pursuant to due and legal action authorizing the same to be done, as of the Effective Date. LANDLORD AMTRAK Page 144 of 464 CITY OF PASCO, a municipal NATIONAL RAILROAD PASSENGER corporation CORPORATION By: _________________________ By: _____________________________ Adam Lincoln Louis Wolfowitz City Manager Assistant Vice President Real Estate Development Attest By_________________________ Eric Ferguson, City Attorney STATE OF WASHINGTON ) : SS County of Franklin ) On this day personally appeared before me ADAM LINCOLN, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this __ day of _________. 2024 Print Name _____________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires ___________________ STATE OF _____________________ ) : SS County of _______________ ) On this day personally appeared before me, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. Page 145 of 464 GIVEN under my hand and official seal this __ day of _________. 2024 Print Name _____________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires ___________________ Page 146 of 464 Page 147 of 464 Page 148 of 464 Page 149 of 464 Exhibit C Page 150 of 464 Page 151 of 464 11/25/2024 Pasco City Council Workshop Pa g e 1 5 2 o f 4 6 4 National Railroad Passenger Corporation, "Amtrak“, Intermodal Lease Agreement Date Pasco City Council Pa g e 1 5 3 o f 4 6 4 •National Railroad Passenger Corporation, "Amtrak" has maintained a lease with the City at the Pasco Intermodal Station since 1999. •Most recent lease was initiated in 2014, with a 5-year initial term, and 5-year extension option, both which are completed. •Amtrak wishes to renew a lease to continue use of the Pasco Intermodal Station •City’s Real Estate representative performed comparison and determined 3% annual rental rate increase aligns with current market standards. “Amtrak” Lease Renewal Pa g e 1 5 4 o f 4 6 4 Amtrak shall pay City of Pasco rent for the use of the premises. The rent payment amounts shall be as follows over the life of the agreement. •1st Year of Lease (March 2024 – February 2025) $34,661.64/annual •2nd Year of Lease (March 2025 – February 2026)$35,701.49/annual •3rd Year of Lease (March 2026 – February 2027)$36,772.53/annual •4th Year of Lease (March 2027 – February 2028)$37,875.71/annual •5th Year of Lease (March 2028 – February 2029)$39,011.98/annual •6th Year of Lease (March 2029 – February 2030)$42,593.28/annual •7th Year of Lease (March 2030 – February 2031)$43,871.07/annual •8th Year of Lease (March 2031 – February 2032)$45,187.20/annual •9th Year of Lease (March 2032 – February 2033)$46,542.82/annual •10th Year of Lease (March 2033 – February 2034)$47,939.10/annual For a 10 -year total of $410,156.82. “Amtrak” Lease Renewal Pa g e 1 5 5 o f 4 6 4 Council Policy Decision: •Asking Council to approve Resolution authorizing the new lease agreement as presented. •Questions??? “Amtrak” Lease Renewal Pa g e 1 5 6 o f 4 6 4 Pa g e 1 5 7 o f 4 6 4 AGENDA REPORT FOR: City Council November 26, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Richa Sigdel, Director City Manager SUBJECT: Resolution No. 4541 - Basin Disposal Inc. 2025 Proposed Rate Increase I. REFERENCE(S): Resolution Basin Disposal Inc. Letter 7/29/2024 Solid Waste Agreement 11/16/2015 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4541, approving a rate increase for Solid Waste Collection and Disposal services by Basin Disposal, Inc. III. FISCAL IMPACT: A 2.56% increase in Solid Waste collection and disposal rates for 2025 for all customers within the City of Pasco's Service Area. IV. HISTORY AND FACTS BRIEF: Basin Disposal Inc. (BDI) has provided collection and disposal of the City's residential and commercial solid waste for many years. The current agreement with BDI, negotiated in 2015, is for a rolling 15-year term with automatic 1-year extensions of the expiration date with each anniversary, unless notice of termination is provided per the provisions of the agreement. The agreement sets the terms and classes of service and provides the conditions for rate increases, which may occur annually. Basic rate adjustments are tied to the Consumer Price Index (CPI) (limited to 80% of any increase) while other adjustments (i.e., tipping fees, disposal costs, etc.) due to outside vendors, may also be requested. The agreement includes an annual rate adjustment cap of five percent (5%). Page 158 of 464 V. DISCUSSION: Based on the terms of the BDI agreement, and also taking into account how these increases are calculated and distributed across each service area. BDI proposed an overall rate increase of 2.56% for a 96 gallon container, based on the following components:  The collection fee is increasing by 2.07%, which is calculated based on 80% of the Consumer Price Index from June of this year per the requirement of BDI's contract with Pasco  The tipping fee is increasing by 3.6% from $57.46 per ton to $59.53 over last year's rates. This results in the following changes in Residential Monthly Rates: 2024 Rates 2025 Rates Increase 64-Gallon Residential Cart (Senior/Low Income) Only $12.22 $12.53 $0.31 96-Gallon Residential Cart $24.47 $25.10 $0.63 With the recommended 2.56% rate increase, the cost for a standard residential 96-gallon container will increase from $24.47 per month to $25.10 per month. Per the contract, BDI is the retail provider to the customer and is responsible for notification of the proposed rate adjustment. City staff has reviewed the proposal and found that the recommended annual rate increase of 2.56% is consistent with the terms and conditions of the agreement. Page 159 of 464 Resolution – 2025 BDI Annual Rate Increase - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, APPROVING A RATE INCREASE FOR SOLID WASTE COLLECTIONS AND DISPOSAL SERVICES BY BASIN DISPOSAL, INC. WHEREAS, the City of Pasco (City) and Basin Disposal, Inc. (BDI) entered into a Comprehensive Solid Waste Collection Agreement (Agreement) dated November 16, 2015, for the collection, transport and disposal of all Solid Waste, Household Hazardous Waste and other authorized materials commencing January 1, 2016; and WHEREAS, the Agreement term is fifteen years with an automatic one-year extension on each anniversary of the date of commencement; and WHEREAS, the Agreement affords BDI Annual Rate Adjustments based on 80% of the annual percentage increase in the Consumer Price Index (CPI) (All Urban Consumers; West Region, Size B/C) along with adjustments to Tipping Fees and Disposal Fees; and WHEREAS, while the CPI adjustment at 80% results in a requested rate increase of 2.07% along with a 3.6% increase in Tipping and Disposal Fees, the weighted average rate increase due to CPI and Tip fee increase of 2.56% as noticed in Exhibit A is below 5% that is in accordance with the Annual Rate Adjustment Cap outlined in Section 6.3.4 of the Agreement; and WHEREAS, pursuant to the Agreement, BDI must first publish notice by mailing to all affected ratepayers or by publishing in a newspaper of general circulation for two consecutive weeks and such notice must occur forty-five days before the effective rate increase. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council approve the Annual Rate Adjustment of 2.56% in accordance with the terms outlined in the 2015 Comprehensive Solid Waste Collection Agreement, attached hereto as Exhibit B, and the Rate Schedule with the effective dates of January 1, 2025, through December 31, 2025. Be It Further Resolved, that this Resolution shall take effect immediately. Page 160 of 464 Resolution – 2025 BDI Annual Rate Increase - 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 161 of 464 July 29, 2024 Maria Serra Public Works Director 525 N 3rd Ave 2nd Floor Pasco, WA 99301 Dear Mrs. Serra: I hope this letter finds you in good health and spirits. It is time for the annual rate adjustment based on the (Consumer Price Index) CPI. This year’s rate adjustment will also incorporate a Tip Fee increase. Please consider this letter as a notification of the proposed rate adjustments scheduled for January 1, 2025. The contract specifies an Annual Rate Adjustment tied to the CPI, based on 80% of the West Urban CPI, size class B/C. We are once again utilizing June data. The 12-month percentage change is 2.59%; the adjustment factor is 2.07% (2.59% x .80 =2.07%) to be applied to the service component of all rates defined in the contract. The second portion of the year’s rate adjustment comes from increased disposal expenses; Disposal Fees for Solid Waste (MSW) have increased. MSW has increased from $57.46 per ton to $59.53 per ton, a 3.6% increase. The weighted average rate change due to the CPI and Tip fee increase is 2.56%. I am enclosing a copy of Exhibit C proposed rates along with a copy of the CPI sheet. We are most willing to meet with you for conversation on the topic of the rate adjustment and any other solid waste issues. Thank you for your attention in this matter, and please feel free to contact me at 509-544-7709, should you have any questions. I would also like to take the opportunity to thank you and the City Council of Pasco for allowing us to serve the Pasco City Residents. Sincerely, Francisco Alcala Senior Financial Analyst Basin Disposal, Inc. Enclosures Page 162 of 464 ~ U.S. BUREAU OF LABOR STATISTICS Databases, Tables & Calculators by Subject Change Output Options: ,,-EJ ,,EJ ti D include graphs D include annual averages More Formatting Options It Data extracted on : July 15, 2024 (11:41 :53 AM) Consumer Price Index for All Urban Consumers (CPI-U) Series Id: CUURN400SAO Not Seasonally Adjusted Series Title: All items in West-Size Class B/C, all urban consumers, not seasonally adjusted Area: West -Size Class B/C Item: All items Base Period: DECEMBER 1996=100 Download: .xlsx Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2014 141.998 142 .120 142.813 143 .077 144.253 144 .522 144.435 144.317 144 .506 144.2 14 143 .3 98 142.669 143.527 2015 142.022 143 .005 143 .887 144.426 145.346 145.198 144.917 144.752 144 .507 144.379 143.595 143.398 144.119 2016 143.932 144 .128 144.264 145 .128 145.942 145.866 145.8 50 145.829 146.130 146.328 146.004 145.918 145.443 2017 146.469 147.451 147.880 148 .496 148.789 148 .792 148.691 149.255 149 .954 150.336 150.003 149.920 148.836 2018 150.564 151.200 151.702 152 .350 153.201 153 .546 153.464 153.797 154.158 154.729 154 .625 154.228 153.130 2019 154.328 154.671 155.178 156.523 157.488 157.564 157.465 157.654 157.738 158.635 158.482 158.496 157.019 2020 158.599 159 .183 159.129 158.824 158.301 158.857 159.752 160.528 160.846 161.141 161.069 160.840 159.756 2021 161.199 162 .042 163.257 165 .088 166.813 168.425 169.267 169.477 169.977 171.226 172.214 172.722 167.642 2022 174.269 175 .890 178.019 179 .339 180.810 182.790 183.277 183.543 184.088 185.410 184.626 183.686 181.312 2023 184.717 185 .968 187.301 188 .008 188.833 189 .295 189.737 190.368 191.238 191.321 190.409 190.095 188.941 2024 191 .586 191.874 194.047 194 .913 194.709 194.203 12-Month Percent Change Series Id: CUURN400SAO Not Seasonally Adjusted Series Title: All items in West -Size Class B/C, all urban consumers, not seasonally adjusted Area : West -Size Class B/C Item: All items Base Period: DECEMBER 1996=100 Download: .xlsx Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALFl HALF2 2014 1.5 0.7 0.9 0.9 1.7 1.9 1.8 1.5 1.6 1.6 1.2 0.6 1.3 1.3 1.4 2015 0.0 0.6 0.8 0.9 0.8 0.5 0.3 0.3 0.0 0.1 0.1 0.5 0.4 0.6 0.2 2016 1.3 0.8 0.3 0.5 0.4 0.5 0.6 0.7 1.1 1.3 1.7 1.8 0.9 0.6 1.2 2017 1.8 2.3 2.5 2.3 2.0 2.0 1.9 2.3 2.6 2.7 2.7 2.7 2.3 2.1 2.5 2018 2.8 2.5 2.6 2.6 3.0 3.2 3.2 3.0 2.8 2.9 3 .1 2.9 2.9 2.8 3.0 2019 2.5 2.3 2.3 2.7 2.8 2.6 2.6 2.5 2.3 2.5 2.5 2.8 2.5 2.5 2.5 2020 2.8 2.9 2.5 1.5 0.5 0 .8 1.5 1.8 2.0 1.6 1.6 1.5 1.7 1.8 1.7 2021 1.6 1.8 2.6 3 .9 5.4 6 .0 6.0 5.6 5 .7 6.3 6.9 7.4 4.9 3 .6 6.3 2022 8.1 8.5 9.0 8.6 8.4 8 .5 8 .3 8.3 8.3 8.3 7 .2 6.3 8 .2 8 .5 7.8 2023 6.0 5.7 5.2 4.8 4.4 3.6 3.5 3.7 3.9 3.2 3 .1 3.5 4.2 4.9 3.5 2024 3.7 3.2 3.6 3.7 3.1 2.6 3.3 U.S . BUREAU OF LABOR STATISTICS Postal Square Building 2 Massachusetts Avenue NE Washington, DC 20212-0001 Telephone:1-202-691-5200_ Telecommunications Relay Service:7-1-1_ www..bls,.gQ'l Contact Us HALFl 143 .130 143 .981 144.877 147.980 152.094 155.959 158.816 164.471 178.520 187.354 193 .555 O SJ!ecial Notices 4/25/2024 HALF2 143.923 144 .258 146.010 149.693 154.167 158.078 160.696 170.814 184.105 190.528 Page 163 of 464 Page 164 of 464 EXHIBIT C RATE SCHEDULE EFFECTIVE DATES 01/01/2025 through 12/31/2025 Page 165 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 1 of 2 Index of Items Item 5 – Application of Rates – Taxes ........................................................................................ 1 Item 40 – Material Requiring Special Equipment, Precautions, or Disposal ................................ 1 Item 45 – Material Requiring Special Testing and/or Analysis .................................................... 1 Item 50 – Returned Check Charges ........................................................................................... 1 Item 51 – Restart Fees ............................................................................................................... 2 Item 53 – Customer Prepayments .............................................................................................. 2 Item 70 – Return Trips ............................................................................................................... 3 Item 80 – Carryout Service ........................................................................................................ 3 Item 100 – Residential Monthly Rates ........................................................................................ 4 Charges and Rates................................................................................................................. 4 Item 150 – Units, Loose, and/or Bulky Material .......................................................................... 6 Item 160 – Time Rates ............................................................................................................... 7 Applying Time Rates .............................................................................................................. 7 Recording and Charging Rates............................................................................................... 8 Additional Disposal Fees ........................................................................................................ 8 Item 200 – Application of Container and/or Drop Box Rates – General ...................................... 8 Availability .............................................................................................................................. 8 Alternate-Sized Containers and/or Drop Box Containers ........................................................ 8 Disposal Fees for Alternate-Sized Drop Box Containers ......................................................... 8 Rates for Partially Filled Containers and/or Drop Box Containers ........................................... 8 Rates for Compacted Materials .............................................................................................. 8 Rates for Loose Material ........................................................................................................ 8 Permanent and Temporary Service ........................................................................................ 9 Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers ................ 9 Charges for Carts and Containers .......................................................................................... 9 Item 207 – Excess Weight – Rejection of Load, Charges to Transport ....................................... 9 Weight Limits .......................................................................................................................... 9 Transporting Overfilled or Overweight Cart, Container, or Drop Box ......................................10 Item 210 – Washing and Sanitizing Carts, Containers, and Drop Boxes ...................................10 Item 230 – Disposal Fees .........................................................................................................11 Item 240 – Container Service – Non-Compacted – Company-Owned .......................................12 Non-Compacted Company-Owned Commercial Cart ............................................................12 Page 166 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 2 of 2 Permanent Service Rates for the City of Pasco .................................................................12 Temporary Service Rates ......................................................................................................12 Accessorial Charges ..............................................................................................................12 Non-Compacted Company-Owned Commercial Container ....................................................13 Permanent Service Rates ..................................................................................................13 Special Pickup Rates .............................................................................................................14 Temporary Service Rates ......................................................................................................14 Accessorial Charges ..............................................................................................................14 Item 255 – Container Service – Compacted – Customer-Owned ..............................................15 Permanent Service Rates ......................................................................................................15 Accessorial Charges ..............................................................................................................16 Item 260 – Drop Box Service – Non-Compacted – Company-Owned .......................................16 Permanent Service Rates for City of Pasco ...........................................................................17 Temporary Service Rates ......................................................................................................17 Accessorial Charges ..............................................................................................................17 Item 270 – Drop Box Service – Compacted – Customer-Owned ...............................................18 Permanent Service Rates ......................................................................................................18 Accessorial Charges ..............................................................................................................19 Item 300 – List of Abbreviations and Symbols Used in this Exhibit ............................................19 Page 167 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 1 of 20 Item 5 – Application of Rates – Taxes Taxing Entity Tax Description Amount of Tax Application (Commodities) City of Pasco 1 Pasco Utility Tax 8.50% Applicable Customers – Revenue State of Washington 2 WA Solid Waste Tax 3.60% Applicable Customers – Revenue Notes: 1) The City of Pasco Utility Tax of 8.5% is included in the rates defined within this Exhibit C. 2) The Washington State Solid Waste Tax will be applied as a line item to the rates defined within this Exhibit C. Item 40 – Material Requiring Special Equipment, Precautions, or Disposal Transportation of solid waste requiring special equipment or precautions in handling or disposal will be subject to Time Rates named in Item 160 – Time Rates, or to other specific rates contained in this Exhibit C. Contractor will make every effort to be aware of the commodities that require special handling at the disposal sites. The Contractor shall maintain a list of those commodities and make it available for public inspection at the Contractor's office. Item 45 – Material Requiring Special Testing and/or Analysis When the Contractor or disposal facility determines testing and/or analysis of solid waste is required to determine whether dangerous or prohibited substances are present, the actual cost for such testing and/or analysis will be paid by the Customer. At the Contractor's election, they may help provide the Customer with testing and/or analysis of the dangerous or prohibited substance. If the Contractor elects to help with the testing and analysis, these costs will be passed through to the Customer. Item 50 – Returned Check Charges If a Customer pays with a check and the Customer's bank refuses to honor that check, the Customer will be assessed a returned check charge in the amount of $43.59. Page 168 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 2 of 20 Item 51 – Restart Fees A restart fee will be assessed on all Customers whose service is discontinued for non-payment and who subsequently reinstate service. Type of Container Redelivery Component Restart Fee Component Total Restart Fee Cart: A restart fee will be assessed to Cart Customers whose service is suspended with Cart removed for non-payment 1 $13.71 $54.04 $67.75 Container: A restart fee will be assessed to Container Customers whose service is suspended with the Container removed for non-payment 1 $27.21 $54.04 $81.25 Drop Box Container: A restart fee will be assessed to Drop Box Container Customers whose service is suspended with the Drop Box Container removed for non-payment 1 $68.51 $54.04 $122.55 Drop Box Compactor: A restart fee will be assessed to Drop Box Compactor Customers whose service is suspended for non-payment 2 N/A $54.04 $54.04 Notes: 1) Restart fee includes cost of delivery. 2) Restart fee excludes the cost of delivery for both Drop Box Compactor Containers and small Container Compactors. Item 53 – Customer Prepayments A prepayment of $35.00 will be assessed to all first time (new) Residential Customers. The prepayment will be applied to the Customer's account in the event of non-payment, after one year of service, or be returned to the Customer upon termination of the residential service. See Item 100 – Residential Monthly Rates. A prepayment equal to the first month's cost of service will be assessed to all first time (new) Commercial Customers. The prepayment will be applied to the Customer's account in the event of non-payment, after one year of service, or be returned to the Customer upon termination of the commercial service. See Item 240 – Container Service – Non-Compacted – Company- Owned and Item 255 – Container Service – Compacted – Customer-Owned. A prepayment of $250.00 will be assessed to first time (new) Drop Box Customers. The prepayment will be applied to the Customer's account in the event of non-payment, after one Page 169 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 3 of 20 year of service, or be returned to the Customer upon termination of the Drop Box service. See Item 260 – Drop Box Service – Non-Compacted – Company-Owned and Item 270 – Drop Box Service – Compacted – Customer-Owned. A prepayment will be assessed for each temporary service at the time the Customer signs up for the temporary service. The prepayment will be applied to the Customer's account upon termination of the temporary service. See Item 240 – Container Service – Non-Compacted – Company-Owned and Item 260 – Drop Box Service – Non-Compacted – Company-Owned. Item 70 – Return Trips When the Contractor is required to make a return trip that does not require the special dispatch of a truck, to pick up material that was unavailable for collection for reasons under the control of the Customer, or if the Customer requests to have a Cart, Container, or Drop Box Container moved or relocated, the following additional charges, per pickup, will apply: Type of Container Rate Residential/Commercial Cart (64-Gallon and 96-Gallon) 1 $13.71 Detachable Container 1 $27.21 Drop Box Container 1 $68.51 Note: 1) Return trips requiring special dispatch of a truck are considered special pickups. See Item 100 – Residential Monthly Rates, Item 240 – Container Service – Non-Compacted – Company-Owned, Item 255 – Container Service – Compacted – Customer-Owned, Item 260 – Drop Box Service – Non-Compacted – Company-Owned, and Item 270 – Drop Box Service – Compacted – Customer-Owned. Item 80 – Carryout Service The following additional charges will apply when Customers request that Contractor personnel provide carryout service for Carts and/or Units not placed at the curb, the alley, or other point where the Contractor's vehicle can be driven to within five feet of the Carts and/or Units using improved access roads commonly available for public use. Driveways are not considered improved access roads commonly available for public use. Charge for Carryout Service 1 Rate Residential/Commercial Per Unit, Per Pick Up Carts/Units that must be carried out over 5 feet but not over 25 feet $4.04 Page 170 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 4 of 20 Charge for Carryout Service 1 Rate Residential/Commercial Per Unit, Per Pick Up For each additional 25 feet, or fraction of 25 feet, add $4.04 Note: 1) Carryout service is provided to disabled Residential Customers free of charge. Item 100 – Residential Monthly Rates Number of Units or Type of Residential Carts Frequency of Service Garbage Service Rate Recycle Service Rate Green Waste Service Rate (1) 64-Gallon Residential Cart (Senior/Low Income) Only WG $12.53 N/A N/A (1) 96-Gallon Residential Cart 1 WG $25.10 N/A N/A (1) Multi Family/Duplex 96-Gallon Residential Cart 1 WG $25.10 N/A N/A Each Additional 96-Gallon Residential Cart 1 WG $2.58 N/A N/A Frequency of Service Codes: WG=Weekly Garbage; N/A=Service is not currently available. Note: 1) Contractor's collection of solid waste placed outside of the 96-Gallon Residential Cart shall be at no additional cost unless the materials could reasonably have been placed in the Residential Cart. Each unit of solid waste not provided in this manner for collection shall be subject to the solid waste unit rates set forth in Item 150 – Units, Loose, and/or Bulky Material. Charges and Rates Type of Charge Rate Prepayment 1 $35.00 Restart Charge 2 $54.04 Special Pickup 64-Gallon 4 (Senior/Low Income) $16.60 Special Pickup 96-Gallon 4 $19.51 Return Trip Charge 5 $13.71 Page 171 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 5 of 20 Type of Charge Rate Returned Check Charge 6 $43.59 Carryout Service 7 (per Cart, per pick up, up to 25 feet) $4.04 Replacement Cart Charge 8 $103.71 Freon Discharge Fee (appliances containing freon) 9 $80.54 Passenger Tire Charge 10 Item 150 Passenger Tire with Rim Charge 10 Item 150 Notes: 1) A prepayment charge of $35.00 will be assessed to a first time (new) Residential Customer. The prepayment will be applied to the Customer's account in the event of non-payment, after one year of service, or be returned to the Customer upon termination of the residential service. See Item 53 – Customer Prepayments. 2) A restart charge of Error! Reference source not found. will be assessed on all Residential Customers whose service is discontinued for non-payment and who subsequently reinstate services. See Item 51 – Restart Fees. 3) Contractor's collection of Solid Waste placed outside of the 96-gallon Residential Cart shall be at no additional cost unless the materials could reasonably have been placed in the Residential Cart. Each Unit of Solid Waste not provided in this manner for collection shall be subject to the Solid Waste Unit rates set forth on Item 150 – Units, Loose, and/or Bulky Material. 4) A special pickup is the total of each additional pickup rate plus Item 70 – Return Trips. Additional pickup is calculated by taking weekly service and dividing by 4.33. 5) If the Customer requests the Contractor to make a return trip due to no fault of Contractor, Contractor shall be permitted to charge the Customer a return trip charge. See Item 70 – Return Trips. 6) If a Customer pays with a check and the Customer’s bank refuses to honor that check, the Customer will be assessed a returned check charge. See Item 50 – Returned Check Charges. 7) Additional charges will apply when Customers request that Contractor provide carryout services. See Item 80 – Carryout Service. 8) If a particular Customer repeatedly damages a Residential Cart or requests more than one replacement Residential Cart during the term of the Contract due solely to that Customer’s negligence or intentional misuse, the Contractor may charge the Customer a replacement cart charge. If Customer does not return the Residential Cart upon Page 172 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 6 of 20 termination, or service is shut off for non-payment and they refuse to surrender the Residential Cart, a replacement cart charge will be charged. 9) If a Customer requests Contractor to pick up any appliance that contains freon, the Customer will be charged a freon discharge fee. See Item 150 – Units, Loose, and/or Bulky Material. 10) A Residential Customer is entitled to have four passenger tires collected and disposed of from the Residential Customer’s private automobile only. In the event Contractor believes that a Residential Customer is attempting to dispose of quantities of passenger tires more than what a typical Residential Customer would generate, Contractor shall require Customer to pay rates provisioned in Item 150 – Units, Loose, and/or Bulky Material. Residential service does not include the collection and disposal of truck, semi or tractor tires. Item 150 – Units, Loose, and/or Bulky Material Description Rate Minimum Charge Per Pickup Residential Commercial Rate Per Residential Commercial Solid Waste Unit 1, 2 $2.03 $5.16 unit $2.03 $5.16 Bulky Materials 1, 3 $9.41 $19.26 cubic yard $9.41 $19.26 Appliances without freon, furniture Items 4 $0.00 $19.22 item $0.00 $19.22 Freon Discharge Fee 4 $80.54 $105.05 item $80.54 $105.05 Passenger Tires 5 $5.08 $6.63 item $5.08 $6.63 Passenger Tires with Rims 5 $8.89 $11.60 item $8.89 $11.60 Truck Tires $6.35 $8.28 item $6.35 $8.28 Truck Tires with Rims $10.16 $13.25 item $10.16 $13.25 Semi Tires $15.24 $19.88 item $15.24 $19.88 Semi Tires with Rims $19.05 $24.85 item $19.05 $24.85 Page 173 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 7 of 20 Notes: 1) Solid waste units and bulky materials charges for Residential Customers only apply when items are not properly contained for collection as defined in the relevant section of the Agreement. See Notes 2 and 3 for definition of sizes and containment of solid waste units and bulky material. 2) A solid waste unit is defined in the Comprehensive Solid Waste Agreement, but generally means any individual receptacle, can, plastic bag, cart, box, carton, or other container that does not hold more than 32 gallons, or 4 cubic feet of solid waste, and which does not weight more than 65 pounds when filled. 3) Bulky material means bags, boxes, bundles; or empty carriers, cartons, crates, or materials offered for disposal all of which may be readily handled without shoveling (not loose, uncontained materials). Individual items shall not exceed two feet by two feet by five feet (2' x 2' x 5') in dimension, and not weigh more than 65 pounds. 4) Residential Customers may dispose of refrigerators, freezers, or other appliances containing freon with a fee sufficient to cover the Contractor’s cost of properly abating the freon components pursuant to applicable law, or such appliances without a fee if they do not contain freon and the Residential Customer submits to the Contractor proper certification of professional evacuation of such freon components. 5) In the event Contractor believes that a Residential Customer is attempting to dispose of quantities of passenger tires more than what a typical Residential Customer would generate, Contractor shall require Customer to pay rates provisioned in Item 150 – Units, Loose, and/or Bulky Material. Item 160 – Time Rates Type of Equipment ordered Rate Per Hour Truck and Driver Each Extra Person Minimum Charge Single rear drive axle $77.42 $59.16 $59.16 Tandem rear drive axle $118.31 $59.16 $59.16 Applying Time Rates Time Rates named in this item apply in the following situations: a) Material must be taken to a special site for disposal. b) Contractor's equipment must wait at, or return to, a Customer's site to provide scheduled service due to no disability, fault, or negligence on the part of the Contractor. Actual waiting time or time taken in returning to the site will be charged for. c) Customer orders a single, special, or emergency pickup, or when other items in this Exhibit C refer to Item 160 – Time Rates. Page 174 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 8 of 20 Recording and Charging Rates Time must be recorded and charged to the nearest increment of 15 minutes. Time rates apply for the period from the time the Contractor's vehicle leaves the terminal, until it returns to the terminal, or when it leaves its pre-scheduled route and drives towards the Customer's site, excluding interruptions. An interruption is a situation causing stoppage of service that is in the control of the company and not in the control of the Customer. Examples include work breaks, breakdown of equipment, and similar occurrences. Additional Disposal Fees Disposal site or facility use may apply additional fees as described in Item 230 – Disposal Fees in addition to time rates. Item 200 – Application of Container and/or Drop Box Rates – General Availability Contractor must maintain a supply of all sizes of Containers and Drop Box Containers for which rates are listed in this Exhibit C. If a Customer requests a Container or Drop Box Container of a size listed in the Contractor's Exhibit C, and the Contractor is unable to provide the requested size within 7 days of the Customer request, the Customer must be notified in writing or by telephone. Alternate-Sized Containers and/or Drop Box Containers If the Contractor cannot provide the requested size Container or Drop Box Container (and that size is listed in this Exhibit C), the Contractor must provide alternate-sized Containers or Drop Box Containers, sufficient to meet the capacity originally requested by the Customer, at the same rates as would have applied for the requested Container or Drop Box Container. Disposal Fees for Alternate-Sized Drop Box Containers If the Contractor provides alternate-sized Drop Box Containers, the Customer is responsible for all applicable disposal fees resulting from the use of the alternate Drop Box Containers. Rates for Partially Filled Containers and/or Drop Box Containers Full pickup and rental rates apply regardless of the amount of waste material in the Container or Drop Box Container at pick up time. Rates for Compacted Materials Rates for compacted material apply only when the material has been compacted before it is picked up by the Contractor. Rates for Loose Material Loose material dumped into the Contractor's packer truck is subject to the rates for non-compacted material even though the material may be compacted later in the packer truck. Page 175 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 9 of 20 Permanent and Temporary Service The following rules apply: a) If a Customer requests a Container or Drop Box Container for less than 90 days, the Customer will be billed at temporary service rates. b) If a temporary service Customer notifies the Contractor that it has decided to retain the Container or Drop Box Container for more than 90 days, permanent service rates will be assessed from the 91st day until the end of the period the Customer retains the Container or Drop Box Container. c) If a Customer requests a Container or Drop Box Container for more than 90 days, the Customer will be billed under permanent rates. If that Customer cancels service before the end of the 90-day period, the Contractor may not rebill the Customer at temporary service rates. The intent of the Customer at the time service was requested applies. Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers Charges for Carts and Containers The Contractor will assess roll-out charges where, due to circumstances outside of the control of the Contractor, the Contractor is required to move the Cart or Container more than ten (10) feet, but less than twenty (20) feet, to reach the truck. The Contractor will assess a gate charge where the driver is required to unlock a container or locking bar, open and/or unlock an enclosure, or open a gate to access a Cart or Container. Charge Type Rate Unit Roll-Out Cart $4.04 per Cart, per pickup Roll-Out Container $4.04 per Container, per pickup Gate Charge $4.04 per pickup Item 207 – Excess Weight – Rejection of Load, Charges to Transport Weight Limits The Contractor reserves the right to reject pick up of any Container, Stationary Packer, or Drop Box Container which, upon reasonable inspection: 1) Appears to be overloaded. 2) Would cause applicable vehicle load limitations to be exceeded. 3) Would cause the company to violate load limitations or result in unsafe vehicle operation. Page 176 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 10 of 20 4) Would negatively impact or otherwise damage road surface integrity. 5) Contains anything that appears not to be Municipal Solid Waste (MSW) or could do damage to the vehicle. For the purposes of this Exhibit C, the following maximum weights apply: Type/Size of Container, Drop Box, or Cart Maximum Weight Allowance per Receptacle (in pounds) Carts – 64-Gallon 120 pounds Carts – 96-Gallon 180 pounds Detachable Containers – 1.5 to 8 cu yds 1,200 pounds Drop Boxes – All Sizes 20,000 pounds Transporting Overfilled or Overweight Cart, Container, or Drop Box If the Cart, Container, or Drop Box Container exceeds the limits stated above, is filled beyond the marked fill line, or the top is unable to be closed, but the Contractor transports the materials, the following additional charges will apply. Type/Size of Container, Drop Box, or Cart Charge Unit Carts – All Sizes $6.49 per pickup Detachable Non-Compact Containers – 1.5 to 8 cu yds $19.26 per yard Detachable Compact Containers – 1.5 to 8 cu yds $38.51 per yard Drop Box Containers – All Sizes 1 $27.76 per ton Note: 1) If a Drop Box Container is hauled and the weight exceeds the legal limit identified in Item 207 – Excess Weight – Rejection of Load, Charges to Transport, the Contractor will assess an additional charge per ton for any weight over the limit. See Item 230 – Disposal Fees. Item 210 – Washing and Sanitizing Carts, Containers, and Drop Boxes Upon Customer request, the Contractor will provide washing and sanitizing service at the following rates: Page 177 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 11 of 20 Size or Type of Container or Drop Box Delivery Fee Component Steam Clean Component Total Steam Clean Charge Steam Cleaning – Residential Cart 2 Item 100 Item 100 Item 100 Steam Cleaning – Detachable Container 1 $27.21 $23.24 $50.45 Steam Cleaning – Drop Box 1 $68.51 $56.65 $125.16 Note: 1) At Customer request, Contractor shall clean Detachable Containers and Drop Box Containers at no additional cost, not more often than once per year. If Customer requests to have Detachable Container or Drop Box Container cleaned more often than once per year, Item 210 – Washing and Sanitizing Carts, Containers, and Drop Boxes rates will apply. The rate for washing and sanitizing Detachable Containers and Drop Box Containers includes the fee for delivering the newly cleaned Detachable Container or Drop Box Container back to the Customer's location. 2) See Item 100 – Residential Monthly Rates. Item 230 – Disposal Fees Charges herein apply when other items in this Exhibit C specifically refer to this Item 230 – Disposal Fees. Type of Material Disposal Fee Municipal Solid Waste 1, 2 $65.06 Green Waste 3 N/A Commingled Recycle 3 N/A Notes: 1) The disposal fee includes the Pasco Utility Tax of 8.5% 2) Disposal fees for MSW apply to Item 207 – Excess Weight – Rejection of Load, Charges to Transport, Item 260 – Drop Box Service – Non-Compacted – Company-Owned , Item 270 – Drop Box Service – Compacted – Customer-Owned, and possibly Item 150 – Units, Loose, and/or Bulky Material, if the material can reasonably be weighed. 3) Disposal fees for Green Waste and Commingled Recycle materials are only applicable if specifically authorized by the Agreement. During the effective dates of this Exhibit C, disposal fees for green waste and commingled recycle are not authorized by the Agreement. Page 178 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 12 of 20 Item 240 – Container Service – Non-Compacted – Company-Owned Non-Compacted Company-Owned Commercial Cart Permanent Service Rates for the City of Pasco Permanent Service 1, 2, 3 64-Gallon Cart 96-Gallon Cart 32-Gallon Can 12 Pickup - one time per week $29.52 $54.63 $27.54 Pickup - two times per week $59.04 $109.26 $55.08 Pickup - three times per week N/A N/A $82.62 Special Pickups 4 $20.53 $26.33 $20.07 Additional Pickup 4 $6.82 $12.62 $6.36 Return Trip Charge 5 $13.71 $13.71 $13.71 Restart Charge 6 $122.55 $54.04 N/A Prepayment 3 $250.00 $250.00 N/A Temporary Service Rates Temporary Service 64-Gallon Cart 96-Gallon Cart 300-Gallon Container Delivery $13.71 $13.71 $27.21 Per Pick Up Rate $9.49 $17.65 $62.11 Rent Per Calendar Day $0.64 $0.64 $1.92 Prepayment 8 $125.00 $125.00 $125.00 Accessorial Charges Accessorial charges include charges for lids, unlocking cart, unlatching cart, etc. a) A gate charge will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate to access a Cart or Container. See Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers. b) Additional charges will apply when a Customer requests that Contractor provide Carryout Service. See Item 80 – Carryout Service. Notes: 1) Rates are stated per Commercial Cart, per month. Page 179 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 13 of 20 2) Permanent service is defined as no less than scheduled, every week pickup. Customer will be charged for service requested, even if fewer Containers are serviced on a particular trip. No credit will be given for partially filled Containers. 3) Permanent Service: A prepayment will be assessed to all first time (new) Commercial Customers. The prepayment will be applied to the Customer's account in the event of non-payment, after one year of service, or be returned to the Customer upon termination of the commercial service. 4) A Special Pickup requires the special dispatch of a truck and is the total of each Additional Pickup rate plus a Return Trip charge. See Item 70 – Return Trips. Additional pickup is calculated by taking weekly service rate and dividing by 4.33. 5) If the Customer requests the Contractor to make a Return Trip due to no fault of Contractor, the Return Trip charge shall apply. See Item 70 – Return Trips. 6) Restart subject to Item 51 – Restart Fees. 7) Additional charges will apply when a Customer requests that Contractor provide carry-out services. See Item 80 – Carryout Service. 8) A prepayment will be assessed to all Customers requesting temporary service carts. 9) Temporary service shall apply for all service requests that do not exceed ninety (90) consecutive days in any calendar year. If the Customer requires a Cart for a longer period, the Contractor may require the Customer to select the appropriate commercial service plan. 10) The prepayment will be applied to the Customer's account upon termination of the temporary service as a credit against amounts owed to the Contractor. 11) If a Customer requests Contractor to pick up any appliance that contains freon, the Customer will be charged a freon discharge fee. See Item 150 – Units, Loose, and/or Bulky Material. 12) Only the city of Pasco may request the 32-Gallon Can service. Non-Compacted Company-Owned Commercial Container Non-compacted material rates are stated per Commercial Container per month within the city of Pasco. Permanent Service Rates Permanent Service 1 ,2 Size or Type of Container 1.5 Yard 2 Yard 3 Yard 4 Yard 6 Yard 8 Yard Pickup - One Time per Week $149.67 $176.87 $204.08 $251.70 $319.74 $408.19 Pickup - Two Times per Week $288.45 $340.15 $394.56 $496.62 $632.66 $795.95 Page 180 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 14 of 20 Permanent Service 1 ,2 Size or Type of Container 1.5 Yard 2 Yard 3 Yard 4 Yard 6 Yard 8 Yard Pickup - Three Times per Week $435.40 $510.23 $591.86 $734.74 $938.83 $1,197.33 Pickup – Four Times per Week $578.28 $673.50 $775.54 $959.24 $1,238.15 $1,564.70 Pickup – Five Times per Week $707.53 $829.97 $959.24 $1,183.72 $1,551.09 $1,938.85 Special Pickup Rates Service Size or Type of Container 1.5 Yard 2 Yard 3 Yard 4 Yard 6 Yard 8 Yard Special Pickups 4 $61.78 $68.06 $74.34 $85.34 $101.05 $121.48 Return Trip Charge $27.21 $27.21 $27.21 $27.21 $27.21 $27.21 Additional Pickup $34.57 $40.85 $47.13 $58.13 $73.84 $94.27 Restart Charge 5 $54.04 $54.04 $54.04 $54.04 $54.04 $54.04 Temporary Service Rates Temporary Service Size or Type of Container 1.5 Yard 2 Yard 3 Yard 4 Yard 6 Yard 8 Yard Delivery N/A N/A $27.21 $27.21 $27.21 $27.21 Pickup Rate N/A N/A $75.17 $88.77 $109.19 $136.41 Rent Per Calendar Day N/A N/A $7.19 $7.19 $7.19 $7.19 Prepayment 3 N/A N/A $125.00 $125.00 $125.00 $125.00 Accessorial Charges Accessorial charges include charges for lids, unlocking cart, unlatching cart, etc. a) A gate charge will be assessed on each pick-up where the driver is required to unlock a container, locking bar, enclosure or open a gate to access a Cart or Container. See Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers. b) A return trip charge will be assessed when the Contractor is required to make a return trip that does not require the special dispatch of a truck, to pick up a Cart, Container, or Page 181 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 15 of 20 solid waste material or unit(s) that was unavailable for collection for reasons under the control of the Customer. See Item 70 – Return Trips. c) If Customer requires a Locking Container, a one-time fee of $118.31 will be assessed. Notes: 1) Permanent service is defined as no less than scheduled, every week pickup. Customer will be charged for service requested, even if fewer containers are serviced on a particular trip. No credit will be given for partially filled containers. 2) A prepayment is equal to the first month's cost of service and will be assessed to all first time (new) Commercial Customers. The prepayment will be applied to the Customer's account in the event of non-payment, after one year of service, or be returned to the Customer upon termination of the Commercial Service. See Item 240 – Container Service – Non-Compacted – Company-Owned and Item 255 – Container Service – Compacted – Customer-Owned. 3) A prepayment will be assessed to all Commercial Customers requesting temporary service Containers. The Prepayment will be applied to the Commercial Customer's account upon termination of the temporary service as a credit against amounts owed to the Contractor. 4) The special pickup rate is the total of each additional pickup rate plus return trip fee. See Item 70 – Return Trips 5) Restart subject to Item 51 – Restart Fees. 6) If a Customer requests Contractor to pick up any appliance that contains freon, the Customer will be charged a freon discharge fee. See Item 150 – Units, Loose, and/or Bulky Material. Item 255 – Container Service – Compacted – Customer-Owned Compacted Material Rates are stated per Detachable Container, per month within the City of Pasco. Permanent Service Rates Permanent Service 1 Size or Type of Container 2 Yard 3 Yard 4 Yard 6 Yard 8 Yard Pickup – One Time per Week $231.77 $279.41 $340.62 $442.69 $641.22(N) Pickup – Two Times per Week $463.54 $558.82 $681.24 $885.38 $1,282.44(N) Special Pickups 2 $80.74 $91.74 $105.88 $129.45 $175.30(N) Page 182 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 16 of 20 Permanent Service 1 Size or Type of Container 2 Yard 3 Yard 4 Yard 6 Yard 8 Yard Additional Pickup $53.53 $64.53 $78.67 $102.24 $148.09(N) Return Trip Charge $27.21 $27.21 $27.21 $27.21 $27.21(N) Restart Charge 3 $54.04 $54.04 $54.04 $54.04 $54.04(N) Accessorial Charges Accessorial charges include charges for lids, unlocking cart, unlatching cart, etc. a) A gate charge will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate to access a Cart or Container. See Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers. b) A return trip charge will be assessed when the company driver is required to make a return trip that does not require the special dispatch of a truck, to pick up a Cart or material that was unavailable for collection for reasons under the control of the Customer. See Item 70 – Return Trips. c) A disconnect/reconnect fee of $4.03 per pickup will be assessed when Containers are attached to a compactor that requires disconnecting or reconnecting. Notes: 1) Permanent service is defined as no less than scheduled, every week pickup. Customer will be charged for service requested, even if fewer containers are serviced on a particular trip. No credit will be given for partially filled containers. 2) Special pickup is the total of each additional pickup rate plus Item 70 – Return Trips. 3) Service restart subject restart fees. See Item 51 – Restart Fees. 4) If a Customer requests Contractor to pick up any appliance that contains freon, the Customer will be charged a freon discharge fee. See Item 150 – Units, Loose, and/or Bulky Material. Item 260 – Drop Box Service – Non-Compacted – Company-Owned Non-Compacted Material Rates are stated per Drop Box, per pick-up. 1 Page 183 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 17 of 20 Permanent Service Rates for City of Pasco Permanent Service 2 Size or Type of Container 11 and 15 Yard 20 Yard 30 Yard 40 Yard 50 Yard Delivery Charge $68.51 $68.51 $68.51 $68.51 $68.51 Haul Charge $174.36 $180.59 $186.81 $199.28 $211.72 Trip Charge $68.51 $68.51 $68.51 $68.51 $68.51 Restart fee 5 $54.04 $54.04 $54.04 $54.04 $54.04 Prepayment 7 $250.00 $250.00 $250.00 $250.00 $250.00 Minimum Monthly Charge 3 $174.36 $180.59 $186.81 $199.28 $211.72 Mileage Charge 6 $4.03/mile Temporary Service Rates Temporary Service 4 Size or Type of Container 11 and 15 Yard 20 Yard 30 Yard 40 Yard 50 Yard Delivery Charge $68.51 $68.51 $68.51 $68.51 $68.51 Haul Charge $174.67 $180.88 $187.10 $199.57 $212.02 Trip Charge $68.51 $68.51 $68.51 $68.51 $68.51 Daily Rental Charge $9.34 $9.34 $9.34 $9.34 $9.34 Prepayment 7 $250.00 $250.00 $250.00 $250.00 $250.00 Mileage Charge 6 $4.03/mile Accessorial Charges Accessorial charges include charges for lids, unlocking cart, unlatching cart, etc. a) A gate charge will be assessed on each pick up where the driver is required to unlock a container, locking bar, enclosure or open a gate in order to access a Cart or Container. See Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers. b) A trip charge will be assessed when the company driver makes a trip to the Customer's location, but due to reasons under the control of the Customer, was not able to complete the haul. See Item 70 – Return Trips. Page 184 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 18 of 20 Notes: 1) Rates in this item are subject to disposal fees named in Item 150 – Units, Loose, and/or Bulky Material, Item 207 – Excess Weight – Rejection of Load, Charges to Transport, and Item 230 – Disposal Fees. 2) Permanent service means Drop Box service provided at Customer's request for more than 90 days. 3) For permanent service accounts, if a Drop Box is retained by a Customer for a full month and no pickups are ordered, a minimum monthly rent charge will be assessed. 4) Temporary service means providing Drop Box service at the Customer's request, for a period of 90 days or less. 5) Restart subject to Item 51 – Restart Fees. 6) Rates named in this item apply for all hauls within the city limits of Pasco, to the disposal site. Any miles driven outside the city limits of Pasco will be charged at $4.03 per mile. Mileage charge is in addition to all regular charges. 7) A prepayment will be assessed on permanent and temporary service accounts as noted above. The prepayment will be applied to the Customer's account in the event of non- payment or be returned to the Customer upon termination of service. For permanent Drop Boxes, the prepayment will be applied to Customer account upon termination or after one year. 8) If a Customer requests Contractor to pick up any appliance that contains freon, the Customer will be charged a freon discharge fee. See Item 150 – Units, Loose, and/or Bulky Material. Item 270 – Drop Box Service – Compacted – Customer-Owned Compacted material rates are stated per Drop Box, per pickup for the city of Pasco service area. Permanent Service Rates Permanent Service Size or Type of Container 11 and 15 Yard 20 and 25 Yard 30 and 35 Yard 40 Yard Delivery Charge N/A N/A N/A N/A Haul Charge $214.96 $214.96 $214.96 $214.96 Trip Charge $68.51 $68.51 $68.51 $68.51 Prepayment 3 $250.00 $250.00 $250.00 $250.00 Restart Charge 2 $54.04 $54.04 $54.04 $54.04 Page 185 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 19 of 20 Permanent Service Size or Type of Container 11 and 15 Yard 20 and 25 Yard 30 and 35 Yard 40 Yard Mileage Charge $4.03/mile Accessorial Charges Accessorial charges include charges for lids, unlocking cart, unlatching cart, etc. a) A gate charge will be assessed on each pick up where the driver is required to unlock a container, locking bar, enclosure or open a gate to access a Cart or Container. See Item 205 – Roll-Out Charges and Gate Charges – Carts and Detachable Containers. b) A Compactor disconnect/reconnect charge of $4.03 per haul will be assessed when Drop Boxes with compactors require connecting or disconnecting. c) A trip charge will be assessed when the company driver makes a trip to the Customer's location, but due to reasons under the control of the Customer, was not able to complete the haul. See Item 70 – Return Trips. d) A turn around charge of $37.34 per haul will be assessed when company driver must turn the Drop Box around to empty and/or re-connect the Drop Box. e) Rates named in this item apply for all hauls within the city limits of Pasco, to the disposal site. Any miles driven outside the city limits of Pasco will be charged $3.95 per mile. Mileage charge is in addition to all regular charges. Notes: 1) Rates in this item are subject to disposal fees named in Item 230 – Disposal Fees. 2) Restart subject to Item 51 – Restart Fees. 3) A prepayment will be assessed on all (new) Drop Box Compactor service accounts as noted above. The prepayment will be applied to the Customer's account in the event of non-payment or be returned to the Customer after one year. 4) If a Customer requests Contractor to pick up any appliance that contains freon, the Customer will be charged a freon discharge fee. See Item 150 – Units, Loose, and/or Bulky Material. Item 300 – List of Abbreviations and Symbols Used in this Exhibit (C) Denotes changes in wording (N) Denotes new rates, services, or rules (N/A) Denotes not available Page 186 of 464 Exhibit C, Effective 01-01-2025 through 12-31-2025 Page 20 of 20 ***denotes that material previously shown has been deleted Yd. Or yd. Are abbreviations for yard Cu. Or cu. Are abbreviations for cubic Page 187 of 464 COMPREHENSIVE SOLID WASTE COLLECTION AGREEMENT City of Pasco and Basin Disposal, Inc. November 16, 2015 Page 188 of 464 Table of Contents 1. RECITALS, AGREEMENT, DEFINITIONS.................................................................... 1 2. AMENDMENT AND REPLACEMENT OF THE ORIGINAL AGREEMENT .............. 1 3. TERM; AUTOMATIC EXTENSIONS.............................................................................. 1 3.1. Term...................................................................................................................1 3.2. Automatic Extensions........................................................................................2 4. SCOPE OF WORK............................................................................................................. 2 4.1. General Terms and Conditions..........................................................................2 4.2. City Service Area...............................................................................................2 4.3. Sole and Exclusive Solid Waste Service Provider.............................................2 4.4. Annexation.........................................................................................................3 4.5. Unsafe Conditions at Pick -Up Locations...........................................................4 4.6. Hours/Days of Operation...................................................................................4 4.7. Employee Conduct.............................................................................................4 4.8. Disabled Persons Service...................................................................................5 4.9. Holiday Schedules.............................................................................................5 4.10. Inclement Weather and Other Service Disruptions...........................................5 4.11. Suspending Collection from Problem Customers..............................................5 4.12. Missed Collections.............................................................................................6 4.13. Schedule of Solid Waste Collection..................................................................6 4.14. Required Equipment and Signs on Vehicles; Maintenance of Vehicles and Equipment.......................................................................................................... 6 4.15. Residential Carts and Containers Inventory......................................................7 4.16. Ownership of Equipment...................................................................................7 4.17. Spillage..............................................................................................................7 4.18. Disruption Due to Construction.........................................................................7 4.19. Site Planning Assistance....................................................................................8 4.20. Safeguarding Public and Private Property.........................................................8 4.21. Company Name.................................................................................................8 4.22. Coordination between City and Contractor.......................................................8 4.23. Disposal Restrictions and Requirements...........................................................9 4.24. Disposal Site for Solid Waste............................................................................9 4.25. Adjustment of Service Level for Certain Customers.........................................9 Comprehensive Solid Waste Collection Agreement Page ii Page 189 of 464 4.26. Violation of Ordinance......................................................................................9 4.27. Public Information.............................................................................................9 4.28. Compaction of Solid Waste.............................................................................10 5. SOLID WASTE SERVICE.............................................................................................. 10 5.1. Residential Service...........................................................................................10 5.1.1. Residential Customer Solid Waste Service......................................................10 5.1.2. Residential Carts..............................................................................................10 5.1.3. Senior, Low Income Discount.........................................................................11 5.1.4. Household Hazardous Waste Program............................................................13 5.2. Commercial Service.........................................................................................13 5.2.1. Commercial Customer Solid Waste Service....................................................13 5.2.2. Commercial Containers...................................................................................14 5.2.2.1 Container Types...............................................................................................14 5.2.2.2. General Terms and Conditions Applicable to Commercial Containers ........... 14 5.2.2.3. Additional Fees................................................................................................15 5.2.2.4. Customer -Owned Drop -Box Containers..........................................................15 5.3. Temporary Solid Waste Service Plans.............................................................16 5.4. Solid Waste Service to City Properties and Facilities.....................................16 5.5. Recyclable Materials and Green Waste...........................................................17 5.6. Miscellaneous Solid Waste Services...............................................................17 5.7. Customer Service.............................................................................................18 5.7.1. Customer Service Office..................................................................................18 5.7.2. Complaints.......................................................................................................18 5.7.3. Emergency Contact..........................................................................................19 5.8. Reports.............................................................................................................19 6. COMPENSATION........................................................................................................... 19 6.1. Basis for Determination of Solid Waste Service Rates...................................19 6.2. Compensation for Solid Waste Services..........................................................19 6.3. Adjustment to Solid Waste Service Rates.......................................................20 6.3.1. Annual Rate Adjustment..................................................................................20 6.3.2. Adjustments to Tipping Fees and Disposal Fees.............................................20 6.3.3. Fuel Expense Adjustments...............................................................................21 6.3.4. Annual Rate Adjustment Cap..........................................................................21 6.3.5. Solid Waste Disposal Cost Adjustment...........................................................22 Comprehensive Solid Waste Collection Agreement Page iii Page 190 of 464 7. 10. 6.3.6. Tax Additive....................................................................................................22 6.3.7. Other Modifications.........................................................................................22 6.3.8. Changes in Impositions or Other Laws............................................................23 6.3.9. Termination by Contractor...............................................................................23 6.4. Billing for Solid Waste Services; Delinquent Accounts..................................23 6.5. Delinquent Accounts and other Customer Defaults.........................................24 PERFORMANCE FEES, DEFAULT AND REMEDIES ................................................ 24 7.1. Performance Fees.............................................................................................24 7.2. Default and Remedies......................................................................................25 NOTICES.......................................................................................................................... 25 INSURANCE AND BOND REQUIREMENTS.............................................................. 26 9.1. General Insurance Requirement.......................................................................26 9.2. Minimum Scope of Insurance..........................................................................26 9.3. Minimum Amounts of Insurance.....................................................................26 9.4. Deductibles and Self -Insured Retentions.........................................................27 9.5. Other Insurance Provisions..............................................................................27 9.6. Acceptability of Insurers..................................................................................27 9.7. Verification of Coverage..................................................................................27 9.8. Subcontractors..................................................................................................27 9.9. Performance Bond/Surety ................................................................................27 GENERALTERMS.......................................................................................................... 28 10.1. Indemnification................................................................................................28 10.1.1. Indemnify and Hold Harmless.........................................................................28 10.1.2. Notice to Contractor; Defense.........................................................................28 10.1.3. Industrial Insurance Immunity Waiver............................................................29 10.2. Transfer of the Contract...................................................................................29 10.2.1. Assignments, Subcontracts and Delegations...................................................29 10.2.2. Changes in Control..........................................................................................29 10.3. Legal................................................................................................................30 10.3.1 Laws to Govern/Venue....................................................................................30 10.3.2 Attorney Fees...................................................................................................30 10.3.3 Arbitration........................................................................................................30 10.4. Compliance With Laws....................................................................................30 10.5. Non-Discrimination.........................................................................................30 Comprehensive Solid Waste Collection Agreement Page iv Page 191 of 464 10.6. Permits and Licenses........................................................................................31 10.7. Relationship of Parties.....................................................................................31 10.8. Bankruptcy .......................................................................................................31 10.9. Right to Renegotiate or Amend.......................................................................31 10.10. Force Majeure..................................................................................................32 10.10.1 Force Majeure Events......................................................................................31 10.10.2 Force Majeure Occurrences of Non-Default....................................................32 10.11. Illegal Provisions/Severability.........................................................................32 10.12. Waiver..............................................................................................................32 10.13. Entirety.............................................................................................................33 Comprehensive Solid Waste Collection Agreement Page v Page 192 of 464 SOLID WASTE COLLECTION AGREEMENT This Comprehensive Solid Waste Collection Agreement ("Agreement") is made and entered into this 16 day of November, 2015 ("Effective Date"), by and between the City of Pasco, a Washington municipal corporation (the "City"), and Basin Disposal, Inc., a Washington corporation ("Contractor"). RECITALS A. Contractor desires to provide, and has the experience, resources and expertise necessary, to perform solid waste collection services. B. Contractor currently provides solid waste collection service to the City under an agreement executed on March 15, 1993 (as amended, the "Original Agreement"), which will expire not sooner than December 31, 2022. C. The City and Contractor desire to amend and replace the Original Agreement in its entirety to recognize, among other things, the extensive, on-going capital investment made by Contractor to achieve and pass on to customers the cost savings from the efficiencies gained thereby. NOW, THEREFORE, in consideration of the mutual covenants, agreements and promises herein contained, the City and Contractor do hereby agree as follows: AGREEMENT 1. DEFINITIONS Capitalized terms used in this Agreement shall have the meanings given them in Exhibit A. 2. AMENDMENT AND REPLACEMENT OF THE ORIGINAL AGREEMENT Effective as of the Commencement Date, the Original Agreement is hereby amended and replaced in its entirety by this Agreement. 3. TERM; AUTOMATIC 3.1. Term The initial term of this Agreement ("Term") shall be for fifteen (15) years, commencing on January 1, 2016 (the "Commencement Date"), and expiring on the day before the sixteenth (16th) anniversary of the Commencement Date (the "Expiration Date"). Comprehensive Solid Waste Collection Agreement Page 1 Page 193 of 464 3.2. Automatic Extensions On each anniversary of the Commencement Date, the Expiration Date shall automatically be extended by one (1) year unless either party has given ninety (90) days written notice of termination to the other party, in which case the Agreement shall terminate on the Expiration Date in effect as of the date of such written notice of termination. 4. SCOPE OF WORK 4.1. General Terms and Conditions Contractor shall collect, transport and dispose of all Solid Waste, Household Hazardous Waste and any other materials herein authorized, from each and every Customer within the Service Area pursuant to the terms and conditions of this Agreement. 4.2. City Service Area Contractor shall provide all of the services described in this Agreement to the entire City Service Area. 4.3. Sole and Exclusive Solid Waste Service Provider During the Term of this Agreement, Contractor shall be the sole and exclusive provider to manage, collect, transport and dispose of Solid Waste and Household Hazardous Waste, and, as applicable, to manage, collect, transport and process Recyclable Materials and Green Waste subject to a separate collection service requested by the City or the jurisdiction of the WUTC upon adoption of an appropriate jurisdictional overlay granting such authority to the WUTC, all as more particularly described in Section 5.5. herein, and any other materials authorized for collection pursuant hereto, within the City Service Area. When requested by Contractor, the City shall seek to enforce the rights the City has granted to Contractor hereunder; however, the City shall not be obligated to instigate litigation to protect the right of Contractor. Contractor may independently enforce its rights under this Agreement against third party violators, including but not limited to seeking injunctive relief, and the City shall use good faith efforts to cooperate in such enforcement actions brought by Contractor (without obligating the City to join any such litigation). Such efforts may include but not be limited to cease and desist letters, assistance with documenting violations and other activities. Notwithstanding the foregoing, the City shall enforce its municipal code in the ordinary course against any third parties providing unauthorized Solid Waste service. Any material discarded by a Customer for which it pays to collect, process and/or dispose of the material shall constitute "Solid Waste" subject to all terms and conditions of this Agreement. This Agreement will not apply to Solid Waste, Recyclable Materials, Green Waste, Household Hazardous Waste and Agricultural Processed Waste self -hauled by the generator, or Green Waste generated and hauled by private landscaping services. Comprehensive Solid Waste Collection Agreement Page 2 Page 194 of 464 4.4. Annexation If additional territory is added to the City through annexation or other means, Contractor shall make collections in such annexed areas in accordance with the provisions of this Agreement at the unit prices set forth in this Agreement, provided however, the remaining Term of this Agreement shall not be less than fifteen (15) years from the effective date of such annexation. If the City has given Contractor a notice of termination of this Agreement prior to such annexation, the annexed area shall not be added to this Agreement except with the written consent of Contractor, which may be withheld at the sole discretion of Contractor. If the annexed area is added to this Agreement, the parties shall execute an amendment to this Agreement consistent with the provisions of this section, including the replacement of Exhibit B depicting the City Service Area. If Contractor possesses a WUTC certificate or other franchise for Solid Waste collection in the annexed area at the time of annexation, the amendment of this Agreement to add the annexation area to the City Service Area shall be in lieu of the grant of a franchise pursuant to RCW 35.13.280 or RCW 35.A.14.900, as applicable, and Contractor shall waive and release its right to claim any damages or compensation from the City arising out of the cancellation of any pre-existing permit, certificate or franchise held by Contractor prior to annexation, and finther specifically waives the right to receive any additional compensation or any rights of collection in the newly - annexed territory beyond what is provided herein. Subject to the provisions hereof, Contractor acknowledges that its certificate applicable to those fixture annexation areas shall be cancelled effective the date of annexation by the City. If a party other than Contractor holds the WUTC certificate for any such future annexed territory, the City shall work with such party in good faith using commercially reasonable efforts to provide for the timely termination of such party's right to provide Solid Waste collection service to the subject annexation area. Upon termination of such party's right to provide Solid Waste service to said annexation area, the parties shall cause the subject annexation area to be added to the City Service Area as provided above and subject to the terms and conditions of this Agreement. The City will indemnify, hold harmless and defend Contractor from any and all claims, actions, suits, liabilities, losses, costs, expenses and damages, including costs and attorney fees, asserted by such parties providing solid waste collection service arising from Contractor's service in such annexed territory pursuant to this Agreement. The City acknowledges that Contractor shall require a reasonable amount of time to secure the necessary equipment, including but not limited to vehicles, Residential Carts and Containers, to service the annexed area, and shall not penalize Contractor for reasonable delays in the provision of services to annexed areas covered by this Agreement due to procurement delays that are not within the commercially reasonable control of Contractor. Customers within the annexed area shall receive the Residential Carts and Containers described herein in accordance with the provisions of this Agreement. In the event that an annexed area is being serviced with Residential Carts and Containers different from the City's program, Contractor shall be responsible for timely Customer notification and removal of the existing Residential Carts and Comprehensive Solid Waste Collection Agreement Page 3 Page 195 of 464 Containers and delivery of appropriate Residential Carts and Containers within a reasonable time. 4.5. Unsafe Conditions at Pick -Up Locations If, in Contractor's commercially reasonable discretion, a Customer is located in an area that does not permit safe access, tum -around or clearance for Contractor's vehicles, Contractor shall provide Solid Waste service to such Customer provided the Customer sets out its materials adjacent to the nearest Public Street or Private Road allowing such safe access and Contractor is provided with reasonable advance notice of such location. Contractor shall use commercially reasonable efforts to work with such Customer to determine a safe location in compliance with applicable law. If Contractor in its commercially reasonable discretion determines that a Private Road cannot be safely negotiated or that providing drive-in service for Residential Customers shall be impractical due to distance or unsafe conditions, Contractor and the City shall evaluate the on-site conditions and make a determination of the best approach for providing Solid Waste service to the affected Residential Customers. Contractor and the City shall present feasible service options to the Customers concerning the nearest safe and mutually convenient pick-up location. If Contractor believes that its vehicles shall cause damage to a Private Road in the ordinary course of operation, Contractor may withhold Solid Waste service from the respective Customers until such Customers provide a damage waiver agreement to Contractor. 4.6. Hours/Days of Operation Contractor shall make Solid Waste collections from Single -Family Residences, Multi - Family Complexes and Mixed -Use Buildings on Monday through Friday between the hours of 7:00 a.m. and 6:00 p.m., provided, however, that the City may authorize from time to time temporary extensions or written exemptions of the collection period to accommodate the special needs of Customers, provided further however, that Contractor may conduct from time to time Solid Waste collections on Saturdays to the extent necessary to make up missed collections. Contractor shall make Solid Waste collections from non -Residential Commercial Customers on Monday through Friday between the hours of 5:00 a.m. and 6:00 p.m. provided; however, the City shall have the authority to notify the Contractor of which Commercial areas are located near Residential zoned areas, and shall be subject to the Residential collection hours. 4.7. Employee Conduct Contractor shall require its employees at all times on routes to be courteous, refrain from making loud, inappropriate or obscene language, exercise due care, perform their work efficiently and expeditiously, and avoid damage to public or private property. Contractor shall further require its employees to use only that portion of private property reasonably necessary to complete their duties, and to the extent reasonably possible, stay within regular pedestrian walkways and paths and avoid crossing flower beds and hedges. Contractor's employees shall wear reasonably clean and presentable clothing while on Comprehensive Solid Waste Collection Agreement Page 4 Page 196 of 464 their routes. If the City gives written notice to Contractor of any employee of Contractor failing to comply with the above requirements, Contractor shall use commercially reasonable efforts to remedy the issue as soon as possible, including temporarily or permanently removing such employee from all further performance of the work described in this Agreement. 4.8. Disabled Persons Service Contractor shall provide, at no additional expense, carry -out service of Solid Waste to those Residential Customers that suffer from a documented disability that prevents them from placing a Residential Cart at the Curb. The Residential Customer shall provide Contractor with verifiable information and complete the appropriate documentation prior to such service being provided. Contractor's criteria for carry -out service shall comply with all local, state and federal regulations, and shall be subject to the City's review and approval prior to program implementation. 4.9. Holiday Schedules Contractor shall provide regular Residential and Commercial collection services on all weekdays, Monday through Friday inclusive, regardless of any holidays that may be observed. Drop -Box Container collection service shall not be performed on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day and Christmas. 4.10. Inclement Weather and Other Service Disruptions If, in Contractor's commercially reasonable discretion, weather or other route conditions pose a danger to the public, Contractor's employees or equipment, Contractor shall provide Solid Waste service only to those portions of the City Service Area that do not pose such a danger. Contractor shall provide the City within a reasonable time after such event Contractor's plans to make up missed Solid Waste collections. Unless the City gives Contractor written notice of the City's objections to such plans, Contractor may perform limited Solid Waste collection services after 6:00 pm and/or on Saturdays following disruptions in order to make up missed collections. 4.11. Suspending Collection from Problem Customers The City and Contractor acknowledge that, from time to time, some Customers may cause disruptions or conflicts that make continued service to that Customer unreasonable. Those disruptions or conflicts may include, but not be limited to, repeated damage to Residential Carts or Containers, repeated refusal to position Residential Carts or Containers properly, repeated suspect claims of timely set -out followed by demands for return collection at no charge, and repeated claims of damage to the Customer's property. Contractor shall make every reasonable effort to provide service to those problem Customers. However, Contractor may deny or discontinue service to a problem Customer if reasonable efforts to accommodate the Customer and to provide services fail. If the Customer submits a written letter to the City appealing Contractor's decision, the Comprehensive Solid Waste Collection Agreement Page 5 Page 197 of 464 City may, in its sole discretion, intervene and attempt to mediate a resolution in the dispute. The City may also require the denial or discontinuance of service to any Customer who is abusing the service or is determined to be ineligible. 4.12. Missed Collections If Contractor fails to collect Solid Waste from a Customer without permissible excuse therefore, Contractor shall provide such service to the Customer within a reasonable time, but in no event later than 6:00 P.M. of the business day following Contractor's receipt of notification of the missed pick-up. Contractor shall maintain a record of all missed collections reported by Customers (whether reported by telephone or e-mail) and Contractor's corrective action. If a Residential Cart or Container is set out inappropriately, improperly prepared or contaminated with unacceptable Solid Waste, Biomedical Waste or Hazardous Waste, Contractor shall not be obligated to collect the materials from such Residential Cart or Container. Contractor shall place a notification tag on such Residential Cart or Container that identifies the specific reason for not collecting the Solid Waste, and maintain a record of such missed collections. If Contractor is requested by the Customer to make a return trip due to no fault of Contractor, Contractor shall be permitted to charge the Customer an additional fee for this service at the rate specified in the rate schedule attached hereto as Exhibit C ("Rate Schedule"). 4.13. Schedule of Solid Waste Collection Contractor shall perform Solid Waste services for each respective Residential Customer pursuant to a regular schedule on the same day and as close to a consistent time as possible; Contractor may vary, in its discretion, the collection routes and schedules for Commercial Customers. Contractor shall provide dispatch service and equipment capability to collect full Drop -Box Containers no later than the second (2nd) business day after the Customer's request. Contractor shall indicate, on a detailed map acceptable to the City, the day of the week Solid Waste shall be collected from each Residential Customer. Contractor may change the day of collection from time to time by giving the City and the affected Residential Customers at least fifteen (15) days prior written notice of the different collection date. 4.14. Required Equipment and Signs on Vehicles; Maintenance of Vehicles and Equipment Contractor shall cause each of its vehicles to display the vehicle's inventory number and customer service telephone number in lettering not less than four (4) inches high and clearly visible from a minimum distance of twenty (20) feet, together with appropriate safety markings, including all highway lighting, flashing and warning lights, clearance lights, and warning flags in accordance with applicable laws. Contractor shall equip each route, service and supervisory vehicle with properly licensed two-way communication equipment capable of communication throughout the entire City Service Area with a base station maintained by Contractor. In addition, Contraction shall cause all vehicles to Comprehensive Solid Waste Collection Agreement Page 6 Page 198 of 464 cavy regularly -maintained and fully -functional spill kits, including absorbent pads or granules, containment booms, storm drain covers, sweepers and other similar materials sufficient to contain, control and, for minor events, appropriately clean-up spillage or release of wind-blown materials, litter, or leaks of fluids or leachate from the vehicle. Spill kits shall also include Contractor's spill response procedure, which procedure shall be developed as provided in Section 4.17. Contractor shall cause all vehicles and equipment to be maintained in good operating condition at all times. In addition, Contractor shall maintain its vehicles to ensure that no liquid wastes (such as Solid Waste leachate) or oils (lubricating, hydraulic or fuel) to be discharged from the vehicles except to appropriate facilities. Contractor shall regularly clean and wash thoroughly all vehicles used in the collection of Solid Waste. Contractor shall cause its vehicles to be repainted from time to time as needed to maintain a clean and professional appearance. 4.15. Residential Carts and Containers Inventory Contractor shall procure and maintain a sufficient quantity of Residential Carts and Containers to service the City's Customer base, including for seasonal and economic variations in the demand for Residential Carts and Containers. 4.16. Ownership of Equipment All vehicles, facilities and property used in performance of work under this Agreement shall be owned or leased by Contractor. The City shall have no obligation to provide equipment, facilities or personnel in connection with Contractor's duties hereunder. 4.17. Spillage Contractor shall cause any blowing or spillage of Solid Waste, or leachate from Contractor's vehicles, to be cleaned up immediately by Contractor's employees. For any spill of leachate requiring more equipment or treatment other than the spill kits carried on a collection vehicle, Contractor shall promptly notify the City of such event. Contractor shall develop and submit to the City for its review a spill response procedure, and shall incorporate any commercially reasonable comments that the City provides. The spill response procedure shall include a list of emergency contacts, which shall be reviewed annually and updated as necessary. 4.18. Disruption Due to Construction If a Public Street is under construction such that the work interferes with Contractor's services, Contractor shall use commercially reasonable efforts to account for such interruption to permit the prudent and safe collection of Solid Waste from affected Customers. Comprehensive Solid Waste Collection Agreement Page 7 Page 199 of 464 4.19. Site Planning Assistance The City shall, as part of its permitting process, cause written notice to be given to Contractor of any development permit application containing plans for the construction of a new or substantially remodeled building or other permanent structure, where commercial container service is contemplated for solid waste, so that Contractor may provide, but has no obligation to do so, written comments concerning Contractor's ability to access Containers and provide safe and efficient collection services to such property. Upon request and at standard rates determined from time to time by Contractor, Contractor shall provide site planning assistance to property owners or their representatives. The site planning assistance shall be available for all new construction or remodeling of buildings and structures within the City Service Area, and shall address the design and planning of Solid Waste removal areas and their location upon the site. Contractor shall provide its assistance for optimizing loading docks, enclosures, compactor equipment and other similar structures or areas, provided however, that such site planning consultation service shall be made without warranty and without liability of any sort, and Contractor may require a commercially reasonable waiver to such effect prior to giving such site planning assistance. 4.20. Safeguarding Public and Private Property Contractor shall use commercially reasonable efforts to avoid causing damage to any public and private improvements, facilities and utilities whether located on public or private property. If such improvements, facilities, utilities or Curbs are damaged and such damage is due to the negligence or intentional misconduct of Contractor, Contractor shall notify the City immediately in writing of such damage. If such damage is of a type not ordinarily suffered or in excess of normal wear and tear caused by vehicles operated by Contractor, Contractor shall either repair such damage, if practicable, or reimburse the City for the reasonable cost of repairing such damage, which cost shall be the cost of restoring such property to the condition immediately prior to such damage. 4.21. Company Name Contractor shall not use a trade name containing any words that implies Contractor is operated or owned by the City. 4.22. Coordination between City and Contractor Within a sixty (60) days time after receipt of written request of either party, the other party shall meet at the City's offices to resolve any operational issues with Contractor's services. Contractor shall provide the City with access to Contractor's route and Customer service data, billing information, safety records, equipment, facilities and other applicable items, and the City shall provide Contractor with access to the City's records applicable to the issue. Comprehensive Solid Waste Collection Agreement Page 8 Page 200 of 464 4.23. Disposal Restrictions and Requirements Except as expressly provided herein, Contractor shall not knowingly or negligently collect, transport or dispose of Hazardous Waste or Biomedical Waste, and shall have no responsibility for such waste. Contractor shall not be required to collect Hazardous Waste, Biomedical Waste or any other materials that are either restricted from disposal or would pose a danger to Contractor's collection crews. If materials are rejected for this reason, Contractor shall leave a written notice with the rejected materials listing why they were not collected and providing the Customer with a contact for further information about proper disposal options. The Customer shall remain responsible for all costs associated with handling and disposal of such materials inadvertently collected by Contractor. 4.24. Disposal Site for Solid Waste Contractor shall deliver all Solid Waste to an appropriate disposal site operated by Contractor or such other disposal site or sites that satisfy applicable state regulations. Contractor shall provide the City with a list of the disposal sites being used by Contractor. 4.25. Adjustment of Service Level for Certain Customers If Contractor in its commercially reasonable discretion determines that a Residential Customer is generating quantities or types of Solid Waste different from a typical Residential Customer, Contractor shall notify City of the same. Within thirty (30) days of Contractor's notice, City shall determine if the Residential Customer maintains a commercial enterprise from the Residence, for example by determining if a business license has been issued declaring the business address to be same as the Residence, and should be served by a commercial Solid Waste service plan. If City determines that the customer is operating as a commercial enterprise, said Residential Customer's service shall be revised to the appropriate commercial service most closely approximating the service required by the affected Customer, as determined by Contractor. 4.26. Violation of Ordinance Contractor shall promptly give written notice to the City of any observed violations of the City's ordinances concerning the containerization, collection, transport and disposal of Solid Waste. 4.27. Public Information The City may develop, at its expense, public outreach and education programs concerning the reduction of Solid Waste, the recycling of Recyclable Materials, any other programs concerning Solid Waste service within the City Service Area, including the mandatory Solid Waste collection requirements for all Customers in the City Service Area. Contractor shall cooperate in good faith with the City to design and distribute promotional materials to Customers throughout the City Service Area. Comprehensive Solid Waste Collection Agreement Page 9 Page 201 of 464 4.28. Compaction of Solid Waste If any Commercial Customer should deposit into its Container a substantial amount of compacted Solid Waste, or any other Solid Waste that has been subjected to a process modifying its composition or nature resulting in the reduction of its volume because of an increase in density, Contractor may assess against such Commercial Customer an additional charge equal to the difference in compacted and uncompacted Solid Waste service rates set forth in the Rate Schedule. 5. SOLID WASTE SERVICE 5.1. Residential Service 5.1.1. Residential Customer Solid Waste Service Contractor shall collect, transport and dispose of Solid Waste from all Residential Customers within the City Service Area, provided that the Solid Waste is properly contained in Residential Carts supplied by Contractor and set out for collection at the Curb on or abutting Public Streets or Private Roads, together with any additional Solid Waste contained in appropriate bins, bags, cans or other receptacles that could not be placed in the Residential Carts. In addition, Contractor shall collect an unlimited number of Solid Waste Units that are properly set out by a Residential Customer adjacent to its Residential Cart. Contractor's collection of Solid Waste placed outside of the Residential Cart shall be at no additional cost unless the materials could reasonably have been placed in the Residential Cart. Each Unit of Solid Waste not provided in this manner for collection shall be subject to a special pickup charge as provided in the Rate Schedule. Contractor shall also dispose of passenger vehicles tires, but not truck or tractor tires, from Residential Customers. If, in Contractor's commercially reasonable discretion, Contractor determines that a Residential Customer is disposing of passenger vehicle tires in excess of four (4) per year, Contractor may assess the affected Residential Customer a charge for fire disposal in accordance with the rate set forth in the Rate Schedule. 5.1.2. Residential Carts Contractor shall provide each Residential Customer within seven (7) business days of the Customer's request with a 96 -gallon Residential Cart, provided however, that qualifying Residential Customers may request the use of a 64 - gallon Residential Cart as described in Section 5.1.3. Residential Carts shall be rodent and insect proof, and equipped with functional wheels or rollers. Contractor shall maintain all Residential Carts in good condition without any jagged edges or holes. If Contractor's employees note any damaged hinges, holes, poorly functioning wheels or other conditions requiring repair, Contractor shall repair, at its sole cost, such condition without need of request from the Customer. Contractor shall repair the Residential Cart within seven (7) business Comprehensive Solid Waste Collection Agreement Page 10 Page 202 of 464 days of request or notice of a condition requiring repair, or provide a temporary Residential Cart as necessary. Contractor shall replace, at its sole cost, any Residential Cart that is damaged or missing on account of accident, act of nature or the elements, fire, or theft or vandalism by other members of the public within three (3) business days. Contractor may provide replacement Residential Carts that are new or used and reconditioned, provided such Residential Carts are clean and presentable. Contractor shall collect and dispose of damaged and unusable Residential Carts. If, in Contractor's commercially reasonable discretion, Contractor has to replace or repair a damaged Residential Cart as a result of excess wear and tear or otherwise the result of the negligence or intentional misconduct by the Residential Customer, Contractor may charge the Residential Customer a replacement fee for such Residential Cart at the rate set forth in the Rate Schedule. Residential Customers shall be responsible for the cleaning of their Residential Carts. Residential Carts placed for collection shall not weigh in excess of one hundred - twenty (120) pounds for the 64 -gallon Residential Cart or one hundred -eighty 180) pounds for the 96 -gallon Residential Cart. 5.1.3. Senior, Low Income Discount Contractor shall provide Solid Waste service to those Residential Customers qualifying for the senior, low income discount rate set forth in the Rate Schedule upon the same terms and conditions set forth in section 5.1.1 and Section 5.1.2, except that such qualifying Customers shall be provided with one 64 -gallon Residential Cart, and such Residential Customers shall be limited only to the use of such Residential Cart for the disposal of Solid Waste. Each Unit of Solid Waste not placed within such Residential Cart for collection shall be subject to additional pickup charges at the rate set forth in the Rate Schedule. If a senior, low income Residential Customer sets out more Solid Waste than may be contained in a 64 gallon Residential Cart on two or more occasions in any calendar year, Contractor may at any time thereafter cause such Residential Customer to change to the Unlimited Residential Customer service plan at the applicable service rate set forth in the Rate Schedule. Prior to Contractor providing such discounted service, the City shall give written notice to Contractor that the senior, low income Residential Customer has certified each of the following conditions to the City, and that the City has verified to the extent reasonably possible, as being true and correct: i) The Residential Customer is a single occupant of or the head of a household all of whose members have combined annual income from all sources that is not greater than the United States Federal Poverty Level. Such poverty level shall be determined by the "Very Low Income Limits" and updated annually by the City; and Comprehensive Solid Waste Collection Agreement Page I1 Page 203 of 464 ii) The Residential Customer must be the customer of the solid waste service and must be directly responsible for the payment of the solid waste bill; and iii) The Residential Customer is the fee simple owner, or the primary tenant named on the lease, of a Single Family Residence and has resided at such location for a period of not less than ninety (90) consecutive days and must intend to remain at such place; and iv) The Residential Customer is at least sixty-two (62) years of age or older; and v) The Residential Customer shall state on oath that the one (1) 64 gallon Residential Cart shall be adequate to meet the requirements of the Residential Customer without creating a public nuisance or a public health hazard; and vi) The City may require the person demonstrating satisfactory proof for a house hold that qualifies for the rates set forth in this section to make an updated application at any time. "Head of the household" means the person owning or having control of the dwelling unit. In the case of a husband and wife, either person shall be considered the "head of the household"; and vii) The Residential Customer has filed the appropriate application under oath with the City that the Residential Customer shall inform the City in writing if there is any change in the household's status as it relates to the requirements set forth in (i) — (vii) above, and acknowledges the City may require an updated application at any time. The City shall, from time to time but not more than once per month, provide Contractor with a list of the Residential Customers that have satisfied the above conditions and qualified for the applicable discount rate, which discount rate shall go into effect for the subject Residential Customers not later than thirty (30) days after the date of such written notice from the City. Contractor may terminate such discounted service if and when Contractor or the City has a reasonable belief that such Residential Customer no longer qualifies for such discounted service. The City upon its own volition, or within thirty (30) days of receipt of Contractor's written notice, shall use reasonable due diligence to determine if such Residential Customer continues to qualify for such discounted service. If the qualifying Residential Customer loses such status, Contractor shall provide written notice to the Residential Customer and the service rate for Unlimited Residential Service shall be assessed for the first Solid Waste service occurring after the date of such written notice. Comprehensive Solid Waste Collection Agreement Page 12 Page 204 of 464 5.1.4. Household Hazardous Waste Program Contractor shall accept Household Hazardous Waste from Customers residing in Residences within the City Service Area whose accounts with Contractor are in good standing. Contractor shall comply with all applicable State of Washington statutes and regulations including, but not necessarily limited to, Department of Ecology guidelines and permit requirements. At least once per week on a day approved by the City for a minimum of eight (8) consecutive hours, Contractor shall accept without charge Household Hazardous Waste at a facility properly licensed and approved by the City to receive such materials. Contractor may also accept, but has no obligation to do so, other hazardous waste from any other person or Customer, provided that such additional service complies with all applicable laws and contractual obligations of Contractor, and upon such terms and conditions and service rates acceptable to Contractor. Contractor shall transport and dispose of all collected Household Hazardous Waste to an appropriate disposal site. Contractor shall regularly publish brochures concerning the Household Hazardous Waste program, including the location of the facility and the hours of service. The parties hereto acknowledge that the Household Hazardous Waste program is conditioned upon and subject to the continuing effectiveness of that certain agreement by and among Contractor, the City and Franklin County, pursuant to which Franklin County has delegated to Contractor the county's duties under Washington state law to implement and administer a Household Hazardous Waste program. Contractor shall cause the cost of such program to be included in the service rates set forth in the Rate Schedule in full compensation of such services. If and when such agreement or Contractor's obligation thereunder has been terminated, the Household Hazardous Waste program made part of this Agreement shall also be automatically terminated. In such event, the portions of this Agreement authorizing and requiring Contractor to collect Household Hazardous Waste shall be deemed terminated without further action required of any party, and Household Hazardous Waste shall be deemed to be unacceptable waste for collection. On the next Annual Adjustment Date following the date on which Contractor is no longer required to collect such waste, Contractor shall equitably adjust its service charges for each level of Solid Waste service. 5.2. Commercial Service 5.2.1. Commercial Customer Solid Waste Service Contractor shall collect Solid Waste from all Commercial Customers within the City Service Area, provided that the Solid Waste is properly contained within Containers supplied by Contractor. Comprehensive Solid Waste Collection Agreement Page 13 Page 205 of 464 5.2.2. Commercial Containers 5.2.2.1 Container Types Contractor shall provide to each Commercial Customer, and each Commercial Customer may select, the following types of Containers: 1.5-, 2-, 3-, 4-, 6- or 8 -cubic yard Detachable Container; 11-, 20-, 30- or 40 -cubic yard Drop -Box Container; a 96 -gallon or 64 -gallon wheeled cart similar to the respective Residential Carts. Contractor may from time to time provide additional or remove existing Container service options, provided however, that Contractor shall provide at least thirty 30) days prior written notice to affected Commercial Customers with service plans for Containers that are being discontinued. Detachable Containers shall be watertight and equipped with tight -fitting metal or plastic covers, which covers shall be closed by Contractor after every collection service, and may be equipped with four (4) wheels for those Containers with volumes of 4 -cubic yards or less. Drop -Box Containers shall be constructed of metal, and if requested by a Customer, equipped with a tight -fitting screened or solid cover operated by a winch system. Detachable Containers up to 8 -cubic yards shall not weigh in excess of one thousand two hundred (1,200) pounds, and Drop -Box Containers shall not weigh in excess of twenty thousand (20,000) pounds. Commercial carts shall not weigh in excess of one hundred twenty (120) pounds for the 64 -gallon commercial cart or one hundred -eighty (180) pounds for the 96 -gallon commercial cart. 5.2.2.2. General Terms and Conditions Applicable to Commercial Containers Contractor shall fimiish each Commercial Customer with the appropriate Container within seven (7) business days of the Customer's request. Contractor shall deliver and place the Container on the Customer's property in a location determined by the Customer, provided such location is reasonably acceptable to Contractor for the safe and efficient collection thereof. Contractor shall maintain all Containers in good condition without any leaks, jagged edges or holes. If Contractor's employees note any damage to a Container requiring repair, Contractor shall repair, at its sole cost, the damage without need of request from the Customer. Contractor shall repair the Container within seven (7) business days of request or notice of a condition requiring repair, or provide a temporary Container as necessary. Contractor shall replace, at its sole cost, any Container that is damaged or missing on account of accident, act of nature or the elements, fire, or theft or vandalism by other members of the public within there (3) business days. Contractor may provide Customers with either a new or used and reconditioned Comprehensive Solid Waste Collection Agreement Page 14 Page 206 of 464 replacement Containers, provided such Containers are clean and presentable. Contractor shall collect and dispose of damaged and unusable Containers. If, in Contractor's commercially reasonable discretion, Contractor must replace or repair a damaged Container as a result of excess wear and tear or otherwise the result of the negligence or intentional misconduct by the Commercial Customer, Contractor may charge the Customer a replacement fee for such Container. Not more often than once per year, Contractor shall clean without additional cost, said cost being included in the respective service plan, each Customer's Container. In addition, Contractor shall also replace a Container within three (3) business days of request by the City if the City determines that the Container fails to comply with reasonable health and safety standards, provided however, that Contractor shall assess the Customer a cleaning fee at the rate set forth in the Rate Schedule. 5.2.2.3. Additional Fees Contractor shall not charge Commercial Customers an initial delivery fee for a Container, except in the case of temporary Container service or a Container redelivered to a Customer restarting service after having service suspended with its Container removed because of non-payment of invoices. Contractor shall charge a rollout fee in ten (10) foot increments for Containers that must be rolled by Contractor more than twenty (20) feet to reach the collection vehicle at its nearest point of access. Gate and/or disconnect charges shall be assessed as set forth in the Rate Schedule when Contractor must open, unlock, or close a gate in order to service a Container. Contractor may assess additional charges for excess materials loaded so as to lift, as applicable for such Commercial Customer, the Detachable Container lid or Drop -Box Container lid more than six (6) inches from the normally closed position. Commercial Customers may request extra collections of Detachable Containers in addition to the regular service, which additional service shall be subject to an additional charge equal to the proportional amount e.g. one pick-up per week rate divided by 4.33 weeks per month) of their regular monthly rate for that service. Extra collections of Drop - Box Containers shall be provided at the regular rate set forth in the Rate Schedule. 5.2.2.4. Customer -Owned Drop -Box Containers Notwithstanding anything to the contrary in Section 5.2.2.1 above, Contractor may service compactor Drop -Box Containers owned by Commercial Customers at the special collection rates set forth in the Rate Schedule. Contractor shall have no obligation to maintain, repair or clean a compactor Drop -Box Container owned by a Commercial Customer, and shall have no liability to such Customers for damage Comprehensive Solid Waste Collection Agreement Page 15 Page 207 of 464 caused to such compactor Drop -Box Containers except in the event of gross negligence or intentional misconduct by Contractor. If, in the commercially reasonable discretion of Contractor, a Customer -owned compactor Drop -Box Container is not safe, Contractor may elect not to provide service until such compactor Drop -Box Container is made safe for usage and transport. 5.3. Temporary Solid Waste Service Plans Upon request of any Customer, Contractor shall provide on a temporary basis the Container requested by said Customer at the rate set forth in the Rate Schedule for such temporary service. The temporary service rate shall apply for all service requests that do not exceed ninety (90) consecutive days. If the Customer requires a Container for a longer period of time, Contractor may require the Customer to select the appropriate Commercial service plan set forth in the Rate Schedule for the requested Container. If the temporary service plan is in addition to a regular service plan in effect for the Customer, Contractor shall be authorized to bill the Customer for both service plans. Contractor may require the Customer to make a security deposit in advance of a temporary service plan at the rate set forth in the Rate Schedule. 5.4. Solid Waste Service to City Properties and Facilities Contractor shall provide the City with Solid Waste service from all City locations for which the City desires service pursuant to the City's service plan set forth in the Rate Schedule. The City may modify the locations for which the City desires service by providing Contractor with ten (10) days prior written notice, in which case, Contractor shall adjust, if applicable, the fee payable by the City pursuant to the Rate Schedule Exhibit Q. As part of the City's service plan, Contractor shall also provide , without direct cost to the City, Solid Waste service as defined in Exhibit "E" of up to 1,500 tons Base Tonnage) of Solid Waste gathered by the City from alley clean-ups, street sweeping and sewer debris, and deposited in specially designated Drop -Box Containers supplied by Contractor. The Solid Waste service shall be increased in increments of 250 tons of Solid Waste every five years based on the City's solid waste need over the Base Tonnage. The Solid Waste service increase will be based on the following calculations: a) Solid Waste tonnage from city owned properties less Base Tonnage equals Net Solid Waste tonnage from city owned properties with direct cost to the City, (b) if the Net Solid Waste tonnage from city owned properties with direct cost is less than 250 tons, then no change is required, and (c) if the Net Solid Waste tonnage from city owned properties with direct cost is greater than 250 tons, then an increase will be required. If the Net Solid Waste is greater than 250 tons, then the Net Solid Waste plus the Base Tonnage will equal the new Total Solid Waste service for the next five years. Based upon a change in the Total Solid Waste, the Contractor shall be able to adjust Solid Waste service rates consistent with section 6.3.7. Comprehensive Solid Waste Collection Agreement Page 16 Page 208 of 464 Contractor will send a quarterly accounting of the remaining balance of the total Solid Waste service to be provided to the City without direct cost. The accounting period for this Solid Waste service will begin on January 1 and end on December 31 of each contract period. 5.5. Recyclable Materials and Green Waste If, during the Term of this Agreement, the City elects to provide additional services related to Curbside recycling of Recyclable Materials and/or Green Waste from Residences consistent with revisions to and updating of the Franklin County Comprehensive Solid Waste Management Plan, the City may request that Contractor collect, transport, process and recycle Recyclable Materials from all Customers residing in Residences located within the City Service Area. Within ninety (90) days of receipt of such notice, Contractor shall provide the City with a written proposal of the service rates, planned service routes and schedules for Customers residing in Residences and, if also requested by the City, all other Customers, proposed Recycling Carts and Recycling Containers, commodities that will qualify as Recyclable Materials based on current market conditions, estimated interval to secure necessary equipment and facilities, and any other pertinent terms and conditions of such service. Contractor shall remit all proceeds from the sale of collected Recyclable Materials pursuant to the recycling program to the City. If Contractor's proposal is acceptable to the City, the City shall give written notice (Exercise Date) to Contractor to commence providing such service within the City Service Area on the date set forth in the City's notice that is consistent with Contractor's proposal. Upon receipt of the City's notice, the parties shall cooperate in good faith to develop and distribute materials and information to Customers within the City Service Area concerning the addition of the recycling and/or green service. If the City declines to require a separate Recyclable Materials and/or Green Waste service governed by this Agreement, the City shall permit, at Contractor's written request, the Washington Utilities and Transportation Commission ("WUTC") to assume jurisdiction of Curbside Recyclable Materials and/or Green Waste service plans, which will be implemented and operated by Contractor. 5.6. Miscellaneous Solid Waste Services Contractor shall also provide the following special services: i) With respect to Residential Customers and those Commercial Customers residing in Residences located within Mixed -Use Buildings and Multi -Family Complexes within the City Service Area, Contractor shall provide a special Solid Waste service at the rate set forth in the Rate Schedule for Units of Solid Waste that exceed the limitations set forth in the definition of "Solid Waste Units," which service shall be provided within five (5) business days of the Customer's request. ii) With respect to qualifying Customers, Contractor shall administer and provide Solid Waste service as provided under and pursuant to Pasco City Code Section Comprehensive Solid Waste Collection Agreement Page 17 Page 209 of 464 6.04.240, "Special Collection and Residential Coupon," for so long as said program is in effect under the Pasco City Code. iii) With respect to Residential Customers and those Commercial Customers residing in Residences located within Mixed -Use Buildings and Multi -Family Complexes within the City Service Area, Contractor shall collect and dispose of refrigeration and cooling devices common to households, such as refrigerators and air- conditioning units, at the rates set forth in the Rate Schedule, provided however, that the Residential Customer shall either request Contractor to purge and dispose of the cooling substance as required by applicable law or provide Contractor with a certificate reasonably satisfactory to Contractor from a qualified contractor stating that the same has been completed prior to collection and disposal of such item. iv) With respect to all Customers within the Service Area (except as otherwise provided in Section 5.1.1), Contractor shall collect, transport, and dispose of tires from passenger vehicles and trucks at the rate set forth in the Rate Schedule. 5.7. Customer Service 5.7.1. Customer Service Office Contractor shall maintain a Customer service office within the City Service Area with a local telephone number or toll free phone number where Contractor may be contacted by Customers during the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday, except for the holidays recognized by the State of Washington. Contractor shall provide customer service functions relating to service delivery, potential service options, service rates, receiving and resolving customer complaints, dispatching temporary Containers and special collections, and resolving billing questions. 5.7.2. Complaints Contractor shall give prompt and courteous attention to all Customer complaints received by Contractor. Contractor shall promptly investigate any complaint of a missed collection, and if verified, shall arrange for collection as provided in this Agreement. Contractor shall maintain a record of actions taken on all material and legitimate complaints that could not be resolved during the initial communication with the Customer, regardless of how the complaint was received, including date, time, Customer's name and address (if the Customer is willing to give this information), method of transmittal, and nature, date and manner of resolution of the complaint in a computerized daily log. Contractor shall make a conscientious effort to resolve all complaints promptly but otherwise within one 1) business day of the original call or e-mail. The computerized daily log shall be available for inspection by the City, or its designated representatives, during Contractor's office hours, and shall be in a format reasonably acceptable to the City. Comprehensive Solid Waste Collection Agreement Page 18 Page 210 of 464 5.7.3. Emergency Contact Contractor shall provide the City with the name and contact information in the event of an emergency requiring contact with Contractor outside of normal office hours. Contractor shall cause such representative to be available at said emergency telephone number during all hours other than normal office hours. 5.8. Reports In addition to any report required by law, Contractor shall maintain records of the number of loads of Solid Waste collected and transported within the City Service Area and the approximate total tonnage of Solid Waste and any other material herein authorized hauled by Contractor to Contractor's disposal site. Contractor shall make such records available to the City upon request. Subsequent to April 15 of each calendar year, and following at least two (2) months prior written notice, Contractor shall provide to the City a profit/loss financial statement for the preceding calendar year together with a pro -forma financial statement for the ensuing calendar year. The City shall be permitted to review but not make copies of the financial statements. Upon the City's request, Contractor shall make available the same financial statements to an accounting firm selected by the City and reasonably acceptable to Contractor, provided, however, that the accounting firm provides Contractor with a commercially acceptable form of confidentiality agreement. Contractor shall bear all reasonable costs of such accounting firm. 6. COMPENSATION 6.1. Basis for Determination of Solid Waste Service Rates The parties expressly intend that the rates and charges established by this Agreement are designed to capture all legitimate operating and capital costs incurred by Contractor and to provide a fair rate of return on Contractor's investment in providing all services included under this Agreement as may be measured by external methodologies such as the Washington Utilities and Transportation Commission's "Lurito-Gallagher" ratemaking methodology, or other such standards that will enable Contractor to establish fair, just, reasonable and sufficient overall rates in order to allow Contractor to innovate, invest and continue to provide service types and levels responsive to the City's reasonable requirements hereunder. 6.2. Compensation for Solid Waste Services Contractor may collect from each and every Customer within the City Service Area the appropriate charge for the Solid Waste service plan selected by such Customer, together with any additional charges, fees and expenses that may be incurred or requested by such Customer, at the rates set forth in the Rate Schedule. Contractor shall act in good faith to coordinate with Customers to minimize the charges assessed to Customers. Comprehensive Solid Waste Collection Agreement Page 19 Page 211 of 464 6.3. Adjustment to Solid Waste Service Rates 6.3.1. Annual Rate Adjustment Contractor's service charges, excluding fuel expenses, for each level of Solid Waste service shall increase once every year in an amount not to exceed eighty percent (80%) of the annual percentage increase in the Consumer Price Index — All Urban Consumers; West Region, Size B/C, standard reference base period 1982- 84 = 100, hereinafter referred to as the "Adjustment Index," as determined in this section. Adjustments to Contractor's service charges shall be made in units of one cent ($0.01). Fractions less than one cent ($0.01) shall not be considered when making adjustments. Rates shall be adjusted annually, beginning January 1, 2016 (the "Adjustment Date"). Contractor shall submit to the City for review and approval a "Rate Adjustment Statement" showing the calculations of new service rates for the following year, including a calculation of the percentage change in the Adjustment Index for the most recent twelve (12) month period ending the June prior to the Adjustment Date. Contractor's calculations shall be provided to the City annually no later than October 1" and the City shall have ninety (90) days to confirm Contractor's rate modification calculations. Upon receipt of the City's approval, which shall not be unreasonably withheld or delayed, the new rates shall take effect on January 1St of the subsequent year. 6.3.2. Adjustments to Tipping Fees and Disposal Fees A tipping disposal or acceptance fee charged for Solid Waste shall be the financial responsibility of Contractor, provided however, Contractor may incorporate such disposal, tipping or acceptance fees as part of the service rates set forth in the Rate Schedule. In the event of an adjustment in tipping fees or disposal fees paid by Contractor, Contractor shall adjust the tipping fee and disposal fee component of the Solid Waste service rates for each level of service to reflect such adjustment. Contractor shall provide the City with notice of any tipping fee or disposal fee adjustment promptly upon knowledge thereof by Contractor. Contractor shall provide to the City evidence supporting the requested change in service fees as a result of an adjustment to tipping fees and disposal fees at least forty-five (45) days prior to date requested by Contractor for such adjustment to go into effect, which in any event shall not be earlier than the date of the adjustment to the tipping fee or disposal fee. Upon receipt of the City's confirmation that the calculations are correct, the new Solid Waste service rates for each level of service shall take effect on the date requested by Contractor. Contractor shall include a notice in the next invoice issued to the Customers describing the increase in the service rates pursuant to this section. Comprehensive Solid Waste Collection Agreement Page 20 Page 212 of 464 6.3.3. Fuel Expense Adjustments Contractor may also assess to all Customers a "Fuel Surcharge," provided the surcharge is determined and used in accordance with the provisions hereinafter set forth. The Fuel Surcharge shall be implemented and charged by Contractor in the instance that the resulting calculation equals 0.5% or more as described below. The following definitions apply to the use and application of the Fuel Surcharge: Base Fuel Expense: the proportion of approved rates attributable to gross fuel expense, hereby fixed at 5.87%. Base Fuel Price: the average cost of diesel fuel used at the time of the 2016 rate authorization, hereby fixed at $3.79. Current Fuel Price: the per gallon price for retail sales of "West Coast Number 2 Diesel Ultra -Low Sulfur" (0-15 PPM) for the most recent full month reported in the "Monthly Diesel Prices — Ultra -Low" index published by the Energy Information Administration of the US Government or the DGE index. Fuel Surcharge: the product of multiplying the base fuel expense by the percentage change between the base fuel price and current fuel price [e.g. 3.79*(current price/$3.79)]. The Fuel Surcharge shall be calculated by subtracting the Base Fuel Price from the Current Fuel Price and converting the difference to a percentage of the Base Fuel Price; that percentage shall then be multiplied by the Base Fuel Expense and the resulting product shall constitute the Fuel Surcharge. Contractor shall submit to the City a Fuel Surcharge calculation worksheet by the 15th day of the month immediately preceding the months of August, October, December, February, April and June. The Fuel Surcharge shall be deemed approved and authorized unless written objection from the City to the Contractor's mathematical calculations is received by Contractor within seven (7) days of the City's receipt of the worksheet. In such case, the parties shall meet within five (5) business days and work in good faith to resolve any alleged errors in such mathematical calculations. A Fuel Surcharge shall commence only on the first of each of the calendar months named herein above, and shall continue in effect for a two-month period, after which time a new Fuel Surcharge, if applicable, shall go into effect pursuant to the provisions hereof. Contractor shall incorporate such Fuel Surcharge in the Customers' invoices in a timely manner. 6.3.4. Annual Rate Adjustment Cap The Annual Rate Adjustment Cap is met when the cumulative rate increases of 6.3.1 (Annual Rate Adjustment), 6.3.2 (Adjustments to Tipping Fees and Disposal Fees), 6.3.3 (Fuel Expense Adjustment), and 6.3.5 (Solid Waste Disposal Cost Adjustment, if applicable) meet or exceed five percent (5%) as defined by the Consumer Price Index in the United States Department of Labor --All Urban Consumers; West Region, Size B/C, standard reference base period 1982- 84 = 100 (Adjustment Index). Comprehensive Solid Waste Collection Agreement Page 21 Page 213 of 464 If the Annual Rate Adjustment Cap is met, the Contractor may either limit all rate increases (sections 6.3.1, 6.3.2, 6.3.3, and 6.3.5) at the Annual Rate Adjustment Cap or proceed as outlined in section 6.3.7. The Contractor will notify the City within 45 days that the Annual Rate Adjustment Cap has been reached. The Annual Rate Adjustment Cap will be reset on January 15t of every year as per section 6.3.1. 6.3.5. Solid Waste Disposal Cost Adjustment Contractor may also adjust service rates for all levels of service based upon the change in the annual disposal cost of Solid Waste collected by Contractor WACOD Adjustment"). Commencing with the second full twelve month Adjustment Period after any "Exercise Date" pursuant to Section 5.5, and for each Adjustment Period thereafter (each, a "Comparison Period"), the Contractor shall determine the change in the annual disposal cost of Solid Waste collected by Contractor during such Comparison Period as compared to the fust full twelve month Adjustment Period after the Exercise Date ("Base Period"). If the of Solid Waste collected for such Comparison Period has changed by more than five percent (5%) from the Base Period, Contractor shall prepare a WACOD Adjustment calculation worksheet ("WACOD Adjustment Statement") that calculates the WACOD Adjustment to the service rates pursuant to the formula set forth in Exhibit D. The WACOD Adjustment of the service rates shall be adjusted concurrently with annual adjustments to service rates pursuant to Section 6.3.1, with the first month of January two years after the Exercise Date being the first potential date for an adjustment pursuant to this section. Concurrently with the Statement provided to the City pursuant to Section 6.2.1, the Contractor shall submit to the City for review and approval the WACOD Adjustment Statement calculating the adjustment to new rates for the next year, which statement shall show the calculations required in this Section. The City shall have sixty (60) days to confirm the Contractor's WACOD Adjustment to the service rates. Upon receipt of the City's approval of the WACOD Adjustment Statement, which shall not be unreasonably withheld or delayed, the WACOD Adjustment to the service rates shall take effect on January 1" of the subsequent year. 6.3.6. Tax Additive The State Refuse Collection Tax (currently at 3.6%) and any applicable City Taxes shall be added to the rates specified for each class of service and may be identified separately and as additive to said rate on each billing service. 6.3.7. Other Modifications Contractor may apply to the City for rate adjustments that result from increases in the cost of operations arising during the Term of the Agreement. Contractor shall submit a written request to adjust the rates not more than ninety (90) days and not Comprehensive Solid Waste Collection Agreement Page 22 Page 214 of 464 less than sixty (60) days prior to the proposed effective date of the requested change. The City shall promptly consider such proposed rate change with consideration of historical and industry -wide profit levels and rate making methodologies utilized by the Washington State Utilities and Transportation Commission. 6.3.8. Changes in Impositions or Other Laws If the City, county, state or federal authorities impose new taxes, fees or surcharges or change the rates of existing taxes, fees or surcharges after the Commencement Date, or there are other changes in federal, state or local laws or regulations, and the impact of these changes results in increased or decreased Contractor costs, Contractor and City shall enter into good faith negotiations to determine whether compensation adjustments are appropriate and if so, to determine the amount and the method of adjustment. If the City requires review of Contractor's financial or other proprietary information in conducting its rate review, at the request of Contractor, the City shall retain a third party to review such information at Contractor's expense, provided however, that Contractor may require such third party to execute a commercially reasonable confidentiality agreement. Any such additional financial review costs shall be considered allowable business expenses for future rates adjustment purposes. 6.3.9. Termination by Contractor If Contractor requests a rate adjustment pursuant to this Section 6 and the City fails to consent to such request for any reason within four (4) months of the date of Contractor's written request, Contractor may terminate this Agreement by giving written notice of termination to the City not less than four (4) months and not more than eight (8) months after the date of Contractor's written request for such rate adjustment. This Agreement shall terminate on the date set forth in Contractor's written notice of termination, which in no event shall be less than six 6) months from the date of Contractor's written notice of termination. 6.4. Billing for Solid Waste Services; Delinquent Accounts Contractor shall invoice, and shall be responsible for collecting, to and from each and every Customer within the City Service Area for the Solid Waste service plan selected by the Customer. Contractor shall cause each bill to include the following information: (i) Customer name; (ii) Contractor's Customer account information; (iii) service address; iv) service commencement and termination dates, as applicable; (v) billing period, (vi) date of the bill; (vii) Customer's service plan; (viii) date payment is due; (ix) date payment is delinquent; (x) charges for the Customer service plan; and (xi) additional charges, if any. Contractor shall bear the risk of collection. It is the intent of the parties that all issues relating to service and rates under this Agreement should be the responsibility of the Customer, Contractor and the City, and no third party shall have standing to request, speak or represent issues of service in the City Service Area except Comprehensive Solid Waste Collection Agreement Page 23 Page 215 of 464 for the direct Customer, Contractor or the City. Notwithstanding the foregoing, the City reserves the right as provided in Pasco City Code Section 6.04.3 10 to assume the obligation of billing Customers within the City Service Area for Solid Waste services provided by Contractor hereunder. If the City elects to provide such service, the City shall give Contractor six (6) months prior written notice. The parties shall negotiate in good faith the terns and conditions of the transfer of such service to the City, including without limitation, the City assuming the risk of collecting payments. 6.5. Delinquent Accounts and Other Customer Defaults Contractor shall have any and all remedies provided under Pasco Municipal Code Chapter 6.04 and, as applicable, Washington law and regulations, with respect to delinquent accounts and other defaults by Customers, including without limitation, refusing or terminating Solid Waste service, but excluding those remedies in the City's code expressly reserved to the City. The City shall assume no responsibility for the collection of any amount due by a Customer, provided however, that the City shall cooperate in good faith with Contractor in the enforcement of Contractor's rights and remedies to collect any delinquent accounts or cure defaults as may be provided under Pasco Municipal Code Chapter 6.04. Contractor shall provide the City on a monthly basis a report of all service terminations during the previous month. 7. PERFORMANCE FEES, DEFAULT AND 7.1. Performance Fees In the event that Contractor fails to meet any performance obligation set forth in this Agreement, the City shall give written notice to Contractor regarding such failure, in which case Contractor shall promptly take such corrective action to remedy the issue raised in the City's written notice. In addition, City reserves the right to impose the following fines if Contractor fails to meet certain obligations as provided in this Agreement. ACTION OR OMISSION AMOUNT Collection before or after the times Fifty Dollars ($50) per truck route (each specified in this Agreement, except as truck on each route is a separate incident). expressly permitted by the City. Failure to collect missed materials within Fifty Dollars ($50) per incident to a one (1) business day after receipt of maximum of Five Hundred Dollars notice. 500) per truck per day. The performance fees schedule set forth here shall not affect the City's ability to terminate this Agreement as provided in Section 7.2, provided however, the City acknowledges that the performance fees described in this section are an adequate remedy Comprehensive Solid Waste Collection Agreement Page 24 Page 216 of 464 for the above named defaults, and the City may not terminate this Agreement for any of the defaults described in this section unless Contractor has incurred performance fees in excess of $25,000.00 each month for at least three (3) consecutive calendar months. Contractor shall pay such performance fees within thirty (30) days of demand therefore from the City. The City shall provide Contractor with reasonably acceptable documentation supporting such performance fees together with the City's demand therefore. Contractor may appeal any performance fees imposed under this section to the City Manager of the City of Pasco, to whom Contractor shall be allowed to present evidence as to why the amount of performance fees should be lessened or eliminated. 7.2. Default and Remedies If Contractor abandons or materially breaches its obligations hereunder or fails to fully and promptly comply with all of its provisions or fails to give reason satisfactory to the City for noncompliance, the City may then declare Contractor to be in default of this Agreement and notify Contractor of such default and shall provide Contractor with thirty 30) days to cure such default. If Contractor fails to cure such default in a timely manner, the City may thereafter give notice of termination to Contractor and its surety. Upon receipt of any such notice, this Agreement shall terminate. 8. NOTICES Any notice required or permitted to be given under this Agreement shall be in writing and may be given by personal delivery, by certified mail, or by air courier, and if given personally or by mail, shall be deemed sufficiently given if addressed to the City or to Contractor at the following address: The City: City of Pasco P.O. Box 293 525 N. Third Ave. Pasco, WA 9930 Attn: City Manager To Contractor: Basin Disposal, Inc. 2021 North Commercial Avenue Pasco, WA 99302-3850 Attn: Darrick Dietrich Mailed notices shall be deemed given on the fifth (5th) business day following deposit in the United States mail, certified postage prepaid. Notices delivered personally or by air courier shall be deemed given upon receipt. Either party may by written notice to the other specify a different address for notice purposes. Comprehensive Solid Waste Collection Agreement Page 25 Page 217 of 464 9. INSURANCE AND BOND REQUIREMENTS 9.1. General Insurance Requirement Contractor shall procure and maintain, at its sole expense, insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the services provided under this Agreement by Contractor, its agents, representatives, employees or subcontractors, as provided in this Section 9. Contractor's maintenance of insurance as required by the Agreement shall not be construed to limit the liability of Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. 9.2. Minimum Scope of Insurance Contractor shall obtain insurance that meets or exceeds the following requirements: i) Automobile Liability insurance covering all owned, non -owned, hired, and leased vehicles. The policy shall be endorsed to provide contractual liability coverage. The City shall be named as an additional insured under Contractor's Automobile Liability insurance policy with respect to the work performed for the City. ii) Commercial General Liability insurance covering liability arising from premises, operations, independent contractors, products -completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate per Project Endorsement ISO form CG 25 03 11 85, or its equivalent. There shall be no endorsement or modification of the Commercial General Liability insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under Contractor's Commercial General Liability insurance policy with respect to the work performed for the City. iii) Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. iv) Hazardous Waste Hauling. To the Automobile Liability Minimum Scope of Insurance, Pollution Liability coverage at least as broad as that provided under ISO Pollution Liability -Broadened Coverage for Covered Autos Endorsement CA 99 48 and the Motor Carrier Act Endorsement (MCS 90) shall be attached. 9.3. Minimum Amounts of Insurance Contractor shall maintain the following insurance limits: i) Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $2,000,000 per accident. ii) Commercial General Liability insurance shall be written with limits no less than 2,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products -completed operations aggregate limit. Comprehensive Solid Waste Collection Agreement Page 26 Page 218 of 464 9.4. Deductibles and Self -Insured Retentions Any deductibles or self-insured retentions in excess of $50,000 must be declared to and approved by the City, which approval shall not be unreasonably withheld. In the event the deductibles or self-insured retentions are not acceptable to the City, the City reserves the right to negotiate with Contractor for changes in coverage deductibles or self-insured retentions; or alternatively, require Contractor to provide evidence of other security guaranteeing payment of losses and related investigations, claim administration and defense expenses. 9.5. Other Insurance Provisions The insurance policies shall contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability: i) Contractor's insurance coverage shall be the primary insurance with respect to the City, its officials, employees and agents. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of Contractor's insurance and shall not contribute with it. ii) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. iii) Contractor's insurance shall be endorsed to state that coverage shall not be cancelled unless the City is given prior written notice as provided under RCW 48.18.290. 9.6. Acceptability of Insurers Contractor shall secure insurance policies from insurers with a current A.M. Best rating of not less than A: VII. 9.7. Verification of Coverage Contractor shall furnish the City with original certificates including, but not necessarily limited to, the additional insured endorsements, evidencing the insurance policies required pursuant to this Article 9 prior to the Commencement Date. 9.8. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor before commencement of the work. All coverages for subcontractors shall be subject to the same insurance requirements as stated herein for Contractor. 9.9. Performance Bond/Surety Contractor shall provide and maintain at all times a valid Contractor's Performance and Comprehensive Solid Waste Collection Agreement Page 27 Page 219 of 464 Payment Bond or bonds, letter of credit or other similar instrument acceptable to and approved in writing by the City in the amount of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00). The bond, letter of credit or other similar instrument shall be issued for a period of not less than one year, and Contractor shall provide a new bond, letter of credit or similar instrument, and evidence satisfactory to the City of its renewability, not less than sixty (60) days prior to the expiration of the bond, letter of credit or other similar instrument then in effect. The City shall have the right to call the bond, letter of credit or other similar instrument in full in the event its renewal is not confirmed at least five (5) days before its expiration. 10. GENERAL TERMS 10.1. Indemnification 10.1.1. Indemnify and Hold Harmless Contractor shall indemnify, hold harmless and defend the City, its elected officials, officers, employees, agents and representatives, from and against any and all claims, actions, suits, liabilities, losses, costs, expenses, and damages of any nature whatsoever, including costs and attorney's fees in defense thereof, or injuries, sickness or death to persons, or damage to property, which is caused by or arises out of Contractor's exercise of duties, rights and privileges granted by the Agreement, provided, however, that Contractor's obligation to indemnify, defend and hold harmless for injuries, sickness, death or damage caused by or resulting from concurrent willful or negligent acts or actions of Contractor and the City shall apply only to the extent of Contractor's negligence. 10.1.2. Notice to Contractor; Defense In the event an action is brought against the City for which indemnity may be sought against Contractor, the City shall promptly notify Contractor in writing. Contractor shall have the right to assume the investigation and defense, including the employment of counsel and the payment of all expenses. On demand of the City, Contractor shall at its own cost and expense defend, and provide qualified attorneys reasonably acceptable to the City to defend, the City, its officers, employees, agents and servants. The City shall fully cooperate with Contractor in its defense of the City, including consenting to all reasonable affirmative defenses and counterclaims asserted on behalf of the City. The City may employ separate counsel and participate in the investigation and defense, but the City shall pay the fees and costs of that counsel unless Contractor has agreed otherwise. Contractor shall control the defense of claims (including the assertion of counterclaims) against which it is providing indemnity under this section, and if the City employs separate counsel the City shall assert all defenses and counterclaims reasonably available to it. Comprehensive Solid Waste Collection Agreement Page 28 Page 220 of 464 10.1.3. Industrial Insurance Immunity Waiver With respect to the obligations to hold harmless, indemnify and defend provided for herein, as they solely relate to claims against the City, its elected officials, officers, employees, agents and representatives, Contractor agrees to waive Contractor's immunity under industrial insurance, Title 51 RCW, for any injury, sickness or death suffered by Contractor's employees that is caused by or arises out of Contractor's negligent exercise of rights or privileges granted by the Agreement. 10.2. Transfer of the Contract 10.2.1. Assignments, Subcontracts and Delegations Contractor shall not assign or subcontract any of the work or delegate any of its duties under this Agreement without the prior written approval of the City and submittal of proof of insurance coverage. When requested, approval by the City of a subcontract or assignment shall not be unreasonably withheld. In the event of an assignment, subcontracting or delegation of duties, Contractor shall remain responsible for the full and faithful performance of this Agreement and the assignee, subcontractor, or other obligor shall also become responsible to the City for the satisfactory performance of the work assumed. The City may condition approval upon the delivery by the assignee, subcontractor or other obligor of its covenant to the City to fully and faithfully complete the work or responsibility undertaken. In addition, the assignee, subcontractor or obligor shall sign a separate statement agreeing to abide by all terms and conditions of this Agreement. 10.2.2. Changes in Control If Contractor is a corporation, limited liability company or limited liability partnership, then any transfer of this Agreement by merger or consolidation, or any change in the ownership of, or power to vote, the majority or controlling interest of its outstanding voting stock, membership interest, or limited partnership interests, or in the controlling interest at any tier in the ownership structure of Contractor, or change of the manager or general partner for LLCs and LPs, respectively, shall constitute an assignment for the purpose of this section. If Contractor is a partnership, then any transfer of any partnership interest shall constitute an assignment for the purpose of this section. Any transfer of this Agreement by (i) merger or consolidation, (ii) any change in the ownership of, or power to vote, the majority or controlling interest of its outstanding voting stock, membership interest or limited partnership interest, as applicable, (iii) any entity succeeding in the business and assets of Contractor, (iv) any transfer to an entity that controls or is under common control with Contractor, or (v) any transfer to a subsidiary or affiliate shall not be considered an assignment requiring the City's consent, provided however, that in each case described above such entity has Comprehensive Solid Waste Collection Agreement Page 29 Page 221 of 464 equal or greater financial net worth than Contractor on the date of transfer, such entity remains in the control of Darrick Dietrich, the transferee assumes all obligations under this Agreement and that written notification of the transfer, including a copy of the transfer documentation, is provided to the City at least fifteen (15) days prior to the transfer. For purposes of this section, the term control" shall mean ownership of more than 50% of the outstanding voting stock, membership interest or partnership interest. 10.3. Legal 10.3.1. Laws to Govern/Venue This Agreement shall be governed by the laws of the State of Washington both as to interpretation and performance. Venue shall be in Superior Court in the State of Washington for Franklin County. 10.3.2. Attorney Fees The Contractor agrees to pay reasonable attorney fees in the event the City is required to retain an attorney to enforce the Contractor's obligations here under. 10.3.3. Arbitration Any disputes in the first instance shall be directed to the Director of Community Development for resolution. All unresolved disputes with respect to the handling of complaints under this agreement shall be submitted to the City Manager for final resolution. 10.4. Compliance With Laws Contractor shall comply with all applicable federal, state, county, and local laws, statutes, rules, regulations or ordinances, including without limitation, all health and environmental regulations and standards applying to the collection, transport and disposal of Solid Waste. Contractor shall also comply with all applicable requirements of the Federal Occupational Safety and Health Act of 1970 (OSHA), the Washington Industrial Safety and Health Act of 1973 (WISHA), and the standards and regulations issued pursuant to these statutes from time -to -time. 10.5. Non -Discrimination Contractor shall not discriminate against any employee or applicant for employment because of age, race, religion, creed, color, sex, marital status, sexual orientation, political ideology, ancestry, national origin, or the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification. Contractor understands and acknowledges that if it violates this non-discrimination provision and fails to cure such violation to the satisfaction of the EEOC or state agency having Comprehensive Solid Waste Collection Agreement Page 30 Page 222 of 464 jurisdiction, including without limitation, compliance with all terms and conditions set forth in a settlement agreement, this Agreement may be terminated by the City with thirty 30) days prior written notice. 10.6. Permits and Licenses Contractor shall secure all necessary business permits and licenses necessary to provide the Solid Waste services described herein. Contractor shall duly pay all applicable taxes, fees and charges incurred, including, but not limited to, license fees and all federal, state, regional, county and local taxes and fees, including income taxes, property taxes, permit fees, operating fees, business and occupation taxes, workers' compensation and unemployment benefits, surcharges of any kind that apply to any and all persons, facilities, property, income, equipment, materials, supplies or activities related to Contractor's services provided under the Agreement. 10.7. Relationship of Parties The City and Contractor expressly acknowledge that the relationship between Contractor and the City shall at all times be as an independent contractor of the City. No agent, employee, servant or representative of Contractor shall be deemed to be an employee, agent, servant or representative of the City. 10.8. Bankruptcy If (i) Contractor makes any general arrangement or assignment for the benefit of creditors; (ii) Contractor becomes a "debtor" as defined in 11 U.S.C. § 101 or any successor statute (unless, in the case of a petition filed against Contractor, the same is dismissed within ninety (90) days); or (iii) the appointment of a trustee or receiver to take possession of substantially all of Contractor's assets, where possession is not restored to Contractor within ninety (90) days, the City may terminate this Agreement upon giving Contractor written notice thereof In the event that any provision of this section is contrary to any applicable law, such provision shall be of no force or effect. 10.9. Right to Renegotiate or Amend The City shall retain the right to renegotiate this Agreement or negotiate an amendment based on subsequent changes in and to federal, state, county or city laws, regulations or policies that materially modify the terms and conditions of this Agreement, provided however, that the City may not modify the Rate Schedule or the terms by which service rates are determined. This Agreement may be amended, altered or modified only by a written amendment, alteration or modification, executed by authorized representatives of the City and Contractor. Comprehensive Solid Waste Collection Agreement Page 31 Page 223 of 464 10.10. Force Majeure 10.10.1 Force Majeure Events If any Force Majeure event occurs that is not in the direct control of Contractor and which results in a detrimental effect or a material hardship to Contractor in the performance of this Agreement, Contractor may request to make an adjustments to one or more of the Solid Waste service rates or other fees included in the Rate Schedule by providing written notice to the City together with an explanation of the need for such rate adjustments arising from such Force Majeure event. Contractor shall submit such written request not more than ninety (90) days and not less than sixty (60) days prior to the proposed effective date of the requested service rate change, and the City shall promptly consider such proposed rate change. If the City requires review of Contractor's financial or other proprietary information in conducting its rate review, at the request of Contractor, the City shall retain a third party to review such information at Contractor's expense, provided however, that Contractor may require such third party to execute a commercially reasonable confidentiality agreement. Any such additional financial review costs shall be considered allowable business expenses for future rates adjustment purposes. 10.10.2 Force Majeure Occurrences of Non -Default Contractor shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if Contractor's performance is prevented or delayed by acts of terrorism, acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, wars, blockades, public riots, explosions, unavailability of required materials or disposal restrictions, governmental restraint or other causes, whether of the kind enumerated or otherwise, that are not reasonably within the control of Contractor Force Majeure"). If as a result of a Force Majeure event, Contractor is unable wholly or partially to meet its obligations under this Agreement, Contractor shall promptly give the City written notice of the Force Majeure event, describing it in reasonable detail. Contractor's obligations under this Agreement shall be suspended, but only with respect to the particular component of obligations affected by the Force Majeure event and only for the period during which the Force Majeure event exists. 10.11. Illegal Provisions/Severability If any provision of this Agreement shall be declared illegal, void, or unenforceable, the other provisions shall not be affected, but shall remain in full force and effect. 10.12. Waiver No waiver of any right or obligation of either party hereto shall be effective unless in Comprehensive Solid Waste Collection Agreement Page 32 Page 224 of 464 writing, specifying such waiver, and executed by the parry against whom such waiver is sought to be enforced. A waiver by either party of any of its rights under this Agreement on any occasion shall not be a bar to the exercise of the same right on any subsequent occasion or of any other right at any time. 10.13. Entirety This Agreement and the exhibits attached hereto represent the entire agreement of the City and Contractor with respect to the services to be provided under this Agreement. No prior written or oral statement or proposal shall alter any term or provision of this Agreement except as provided herein. WITNESS THE BASZ DISPOSAL, INC. b- 19 Darrick Dietrich, President HEREOF on the day and year first herein above written. CITY OF PASCO Matt Watkins, Mayor A E 0 ebbie Clark, City Clerk Comprehensive Solid Waste Collection Agreement Page 33 Page 225 of 464 Exhibit A Definitions Agricultural Processed Waste: "Agricultural Processed Waste" means any waste which consists exclusively of the remainder and residue of processed fruit or vegetables. Base Tonnage: "Base Tonnage" means the original 1,500 tons of solid waste services transported and removed by the Contractor to the City without any direct cost. Biomedical Waste: `Biomedical Waste" has the same meaning set forth in WAC 480-70-041. Bulky Materials: "Bulky Materials" means bags, boxes, or bundles, or empty carriers, cartons, boxes, crates, etc., or materials offered for disposal, all of which may be readily handled without shoveling (not loose, uncontained materials). Individual items shall not exceed two feet by two feet by five feet (2' x 2' x 5') in dimension, and not weight more than 65 pounds. Charge: "Charge" means a set flat fee for performing a service. Or, the result of multiplying a rate for a unit times the number of units transported. City: "City" means the City of Pasco, Franklin County, Washington. City Service Area: "City Service Area" means the current corporate limits of the City, excluding only those areas for which a different Solid Waste collection company is providing Solid Waste service pursuant to a pre-existing franchise or permit. Commercial Customer: "Commercial Customer" means all non -Residential Customers, including but not limited businesses, institutions, governmental agencies, and all other users, including occupants of Residences, Mobile Home Parks, Multi -Family Complexes and Mixed - Use Buildings, of commercial -type Solid Waste collection services. Compactor Disconnect/Reconnect Charge: "Compactor Disconnect/Reconnect Charge" means a flat fee established by the solid waste collection company for the service of disconnecting a compactor from a drop box or container before taking it to be dumped, and then reconnecting the compactor when the drop box or container is returned to the customer's site. Container: "Container" means any Detachable Container, Drop -Box Container, or wheeled cart owned and provided by Contractor. Contractor: "Contractor" means Basin Disposal, Inc. Curb or Curbside: "Curb" or "Curbside" means a location on a Residential Customer's property within five (5) feet of a Public Street or Private Road without blocking sidewalks, driveways or on -street parking. Comprehensive Solid Waste Collection Agreement, Exhibit A Page I Page 226 of 464 Customer: "Customer" means all entities or persons required to utilize Solid Waste services within the City Service Area, including property owners, property managers and tenants, or as otherwise defined in Pasco Municipal Code Chap. 6.04. Detachable Container: "Detachable Container" means a watertight metal or plastic Container equipped with a tight -fitting cover, capable of being mechanically unloaded into a collection vehicle, and that is not less than one and a half (1.5) cubic yards or greater than eight (8) cubic yards in capacity. Drop -Box Container: "Drop -Box Container" means an all -metal Container with ten (10) cubic yards or more capacity that is loaded onto a specialized collection vehicle, transported to a disposal or recycling site, emptied and transported back to the Customer's site. Exercise Date: "Exercise Date" means the date that the City counter signed the Contractor's proposal that the City requested under section 5.5 (Recyclable Materials and Green Waste) of this contract. Gate Charge: "Gate Charge" means a flat fee charged for opening, unlocking, or closing gates in order to pick up solid waste. Garbage: "Garbage" means all putrescible Solid Waste. Hazardous Waste: "Hazardous Waste" means any substance that is: A. Defined as hazardous by 40 C.F.R. Part 261 and regulated as Hazardous Waste by the United States Environmental Protection Agency under Subtitle C of the Resource Conservation and Recovery Act ("RCRA") of 1976, 42 U.S.C. § 6901 et seq., as amended by the Hazardous and Solid Waste Amendments ("HSWA") of 1984; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; or any other federal statute or regulation governing the treatment, storage, handling or disposal of waste imposing special handling or disposal requirements similar to those required by Subtitle C of RCRA. B. Defined as dangerous or extremely hazardous by Chapter 173-303 WAC and regulated as dangerous waste or extremely Hazardous Waste by the Washington State Department of Ecology under the State Hazardous Waste Management Act, Chapter 70.105 RCW, or any other Washington State statute or regulation governing the treatment, storage, handling or disposal of wastes and imposing special handling requirements similar to those required by Chapter 70.105 RCW. C. Hazardous Waste shall not include any materials defined as Household Hazardous Waste. Household Hazardous Waste: "Household Hazardous Waste" has the same meaning set forth in RCW 70.102.010(2), together with any applicable regulations promulgated by the Washington Department of Ecology pursuant thereto. Loose Material: "Loose Material" means material not set out in bags or containers, including materials that must be shoveled. Comprehensive Solid Waste Collection Agreement, Exhibit A Page 2 Page 227 of 464 Mixed Paper: "Mixed Paper" means magazines, junk mail, phone books, bond or ledger grade paper, cardboard, paperboard packaging, paper cups and other fiber -based materials meeting industry standards, but excluding tissue paper, paper towels, food -contaminated paper or paper packaging combined with plastic, wax and foil. Mixed -Use Building: "Mixed -Use Building" means a structure inhabited by both Residential and Commercial Customers. Mobile Home Park: "Mobile Home Park" shall mean a parcel of land which has been planned, improved or is currently used for the placement of mobile homes and contains more than one (1) mobile home lot. Mobile Home Parks shall be billed collectively for collection service. Multi -Family Complex: "Multi -Family Complex" means a multiple -unit Residence with three or more attached units and billed collectively for collection service. Packer: "Packer" means a device or vehicle specially designed to pack loose materials. Pass Through Fees: "Pass Through Fees" means a fee collected by a solid waste collection company on behalf of a third parry when the fee is billed directly to the customer without markup or markdown. Permanent Service: "Permanent Service" means Container and drop -box service provided at the customer's request for more than 90 days. Private Road: "Private Road" means a privately owned and maintained right of way or access easement that allows for access by a service vehicle and that serves multiple Residences. Public Street: "Public Street" means a public right-of-way or easement maintained by the City, County or the State and used for travel by the public. Rate: "Rate" means a price per unit or per service. A rate is multiplied times the number of units or services. Recyclable Materials: "Recyclable Materials" means materials consisting of aluminum cans and foil; corrugated cardboard; tin cans; recyclable plastic containers that did not contain Biomedical Waste, Hazardous Waste or Household Hazardous Waste; Mixed Paper; newspaper; and such other materials that the City and Contractor may determine from time to time to be recyclable and are otherwise consistent with all applicable ordinances or comprehensive solid waste plans of the City, if any. Residence/Residential: "Residence" or "Residential" mean a living space, with a kitchen, individually rented, leased or owned. Residential Cart: "Residential Cart" means a 64- or 96- gallon wheeled cart suitable for deposit, storage and collection of Solid Waste. Comprehensive Solid Waste Collection Agreement, Exhibit A Page 3 Page 228 of 464 Residential Customer: "Residential Customer" means all Customers residing in a Single - Family Residences. Service Accord: "Service Accord" means limited services that the Contractor agrees to provide to The City as described in Exhibit "E" Single -Family Residence: "Single -Family Residence" means all one -unit houses, each living unit of a duplex if billed individually, and mobile homes that are billed for collection service individually and located on a Public Street or Private Road, and not part of a Mobile Home Park. Solid Waste: "Solid Waste" shall have the same meaning set forth in RCW 70.95.030, but shall not include Biomedical Waste, Hazardous Waste or Household Hazardous Waste. If and when the City permits a separate collection service for Recyclable Materials and Green Waste at City's request or under the jurisdiction of the WUTC, Recyclable Materials and Green Waste shall be deemed to be separate categories of Solid Waste where expressly provided in this Agreement. Special Pickup: "Special Pickup" means a pick-up requested by the customer at a time other than the regularly scheduled pick-up time, that requires the special dispatch of a truck. If a special dispatch is required, the company will assess time rates established in the Contractor's Exhibit. Solid Waste Unit: "Solid Waste Unit" means a receptacle made of durable, corrosion -resistant, nonabsorbent material that is watertight, and has a close -fitting cover and two handles, or is a bag, box, or bundle that contains Solid Waste. A Solid Waste Unit can hold no more than thirty- two gallons or four cubic feet of Solid Waste, and weigh no more than 65 pounds when filled. In addition, a Solid Waste Unit shall not exceed two feet by two feet by five feet (2' x 2' x 5') in dimension. Unlocking: "Unlocking" means a flat fee imposed by a solid waste collection company when the company's personnel must unlock padlocks or other locking devices to perform pickup services. WUTC: "WUTC" means the Washington Utilities and Transportation Commission. Comprehensive Solid Waste Collection Agreement, Exhibit A Page 4 Page 229 of 464 Exhibit B City Service Area O , N o POWSPLIREROAD CITYLIMITS .' 3 I SARDIF PPRWV POb E2 8 D°a iya3 r CI LIMITS vK N p0JS WRTS 1183 ' , . yOt CW E L ffi 3 OOZ I AV m MA •• City of Pasco City Limits 2015 Comprehensive Solid Waste Collection Agreement, Exhibit B Page 1 Page 230 of 464 Exhibit C Rate Schedule 30 -Oct -15 Page 2 Index of Items Comprehensive Solid Waste Collection Agreement, Exhibit C Page 1 Pace Index Index by Rem 2 Index Index by Topic 3 Item 5 Application of Rates - Taxes 4 Item 40 Material Requiring Special Equipment, Precautions, or Disposal 5 Item 45 Material Requiring Special Testing andior Analysis 5 Item 50 Returned Check Charges 5 Item 51 Restart Fees 6 Item 53 New Customer Prepayments 6 Item 70 Return Trips 7 Item 80 Carryout Service 8 Item 100 Residential Can/Unit Service, Curbside Recycling, Greenwaste Service 9 Item 100 Residential Can/Unit Service, Curbside Recycling, Greenwaste Service 10 Item 150 Loose and/or Bulky Material 11 Item 160 Time Rates 12 Item 200 Application of Detachable Container and/or Drop Bar Rates - General 13 Item 205 Roll -Out Charges - Residential Carts and Detachable Containers 14 Item 207 Excess Weight - Rejection of Load, Overweight Charges to Transport 15 Item 210 Washing and Sanitizing Residential Carts, Detachable Containers and Drop Boxes 16 Item 230 Disposal Fees 17 Item 240 Container Service - Non compacted Cart 18 Item 240 Container Service - Nonoorrpacted Container 19 Item 255 Container Service - Compacted - Customer -owned Container 21 Item 260 Drop Box Service - Non -Compacted - Company -Owned Drop Box 22 Item 270 Drop Box Service - Compacted - Company -Owned Drop Box 23 Comprehensive Solid Waste Collection Agreement, Exhibit C Page 1 Page 231 of 464 30 -Oct -15 Page 3 Index ofTooic Comprehensive Solid Waste Collection Agreement, Exhibit C Page 2 Item No Page Ind" by Item............................................................................................................... 2 Indexby Topic.............................................................................................................. 3 BulkyA4aterial............................................................................................................. 150 11 Catryoutservice........................................................................................................... 80 8 Detachable Container service, cempacwd.............................................................................. 255 21 Detachable Container service, non-compacted,....................................................................... 240 18 Detachyable Containers and/or Drop Boxes, availability. .. . ............................................... 200 13 Detachable Containers and/or Drop Boxes, general riles ..................................... _--- 200 13 Detachable Containers and/or Drop Boxes, washing and sanitizing..................... ...... 210 16 Prepayments............................................................................................................... 53 6 Disposalfew.............................................................................................................. 230 17 Dropbcx service, Compacted,.. ........... ....... ......... .................................. ........... 270 23 Drop -Box service, Non -Compacted, ................................................................................... 260 22 Excess Weight - Rejection of Load, Overweight Charges to Transport .................. _....................... 207 15 ResidentialService............ ..................................................................... ..... 100 9 RestartFees................................................................................................................. 51 6 ReturnTrips................................................................................................................ 70 7 Roll-out charges............................................................................................................ 205 14 Timerates.................................................................................................................. 160 12 Comprehensive Solid Waste Collection Agreement, Exhibit C Page 2 Page 232 of 464 30 -Oct -15 Page Items Item 5 — Application of Rates — Taxes Entity intosis tax: I Desai tion I Amount of tax: I Application Commodities Note 1: The rates defined within this Exhibit C include the Pasco Utility Tax Of 8.5%. Note 2: The Washington State Solid Waste Tax will be applied as a line item to the rates as defined within this Exhibit C. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 3 Page 233 of 464 30-0ct-15 page Items 40.45.50 Item 40 --Material Requiring Special Equipment Precautions. or Disposal Transportation of solidwasm requiring special equipment or precautions in handling or disposal will be subject to Time Rates named in Item 160, or to other specific tate contained in this appendec. Contractor will make every effort to be aware of the commodities that require special handling at the disposal sites. The Contractor shall maintain a list of those commodities and make it available for public inspection at the Contractor's office. Item 45 -- Material Requiring Special Testing and/or Analysis When the Contractor or disposal facility determines that testing and/or analysis of solid waste is required to determine whether dangerous or prohibited substance ars present, the actual cost for such testing and/or analysis will be paid by the customer. At the Contractor's election, they may help provide the customer with testing and/or analysis of the dangerous or prohibitedsubstance. If the Contractor elects to help with the testing and analysis, these costs will be passed through to the customer. Item 50 --Returned Check Charges Returned Check Charge. If a customer pays with a check, and the customer's bank refuses to honor that check, the customer will be assessed a Return Check Charge in the amount of $35.00. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 4 Page 234 of 464 30.Oc1-15 Page Items 51 and 53 Item 51-- Restart Charee A Restart Charge will be assessed on all customers whose service is discontinued for non-payment and who subsequently reinstate services. Restart Charges are as follows: A Restart Charge of $43.40 will be assessed to Residential Cart customers whose service is discontinued for non-payment. Please see Item 100. A Restart Charge of $43.40 will be assessed to Detachable Container customers whose service is discontinued fm non-payment. Please see Item 240. A Restart Charge of $43.40 will be assessed to Drop Box customers whose service is discontinued far non-payment. Please am Item 260. Item 53 -- Prepayments for Residential. Commercial. Drop Boz and Temporary Customers A Prepayment of $35.00 will be assessed to all first time (new) Residential Customers. The prepayment will be applied to the customer's account in the event of non-payment, after one year of service, or be returned to the customer upon termination of the residential service. Please am Item 100. A Prepayment is equal to the first month's cost of service, and will be assessed to all first time new) Commercial Customers. The prepayment will be applied to the customer's account in the event of non-payment, after one year of service, or be returned to the customer upon termination of the commercial service. Please ace Item 240 & 255. A Prepayment of $250.00 will be assessed to first time (new) Drop Box Customers. The prepayment will be applied to the customer's account in the event of non-payment, after one year of service, or be returned to the customer upon termination of the Drop Box service. Please see Item 260 & 270. A Prepayment will be assessed for each given Temporary Service, and will be assessed at the time the customer signs up for the Temporary Service. The Prepayment will be applied to the customer's account upon termination of the Temporary Service. Please see Items 240 & 260 Comprehensive Solid Waste Collection Agreement, Exhibit C Page 5 Page 235 of 464 30 -Oct -15 Page Item 70 Item 70 --Return reins When the Contractor is required to make a Return Trip, that does not require the special dispatch of a muck, to pick up material that was unavailable for collection fm reasons under the control of the customer, the following additional charges, per pickup, will apply: Type of Container Return Trip Char¢e Residential Cart (Senior only 64 gallons ............. 8 11.00 Residential Cart, 96 gallons ............. S 11.00 Detachable Container (Container) ............. S 21.85 Comprehensive Solid Waste Collection Agreement, Exhibit C Page 6 Page 236 of 464 30 -Oct -15 Page Item 80 Item 80 -- Carry -Out Service Contractor will assets the following additional charges when customers request that Contractor personnel provide Carry -Out Service of Residential Cans/Units not placed at the curb, the alley, or other point where the Contraeim"s vehicle can be driven to within five feet of the Residential Cam/Units using improved access roads commonly available for public use. Driveways are not considered improved access roads commonly available for public use. Carry --Out Charm Commercial Rates Per Unit, Per Pickup 64 or 96 gallon Cart $ 3.25 thatmust be carried out over 5 feet, but not over 25 feet. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 7 Page 237 of 464 30 -Oct -15 Page Item IN Item 100— Reddeutial Service—Monthly Rates (continued on next pave) Rates below apply in the following service area: City of Pearn Number of Units or Type of Residential Carta 1) 64 gallon Residential Cart (Senior/Low Income Only) 1) 96 gallon Residential Cart 1) Multi Family/Duplex 96 gallon Residential Cart Fath Additional 96 gallon Residential Cart Frequency Garbage Recycle Gmenwaste of Service Service Service Service Rate Rgtg Rate WG $ 9.22 AN/A #N/A WG $ 18.45 W/A #N/A WG $ 18.45 4N/A #N/A WG $ 1.90 W/A HN/A Frequency of Service Codes: WG --Weekly Garbage; NA=Service is not available at this time Comprehensive Solid Waste Collection Agreement, Exhibit C Page 8 Page 238 of 464 34Oct-15 Page 10 Item 100 Item 100-- Residential Service -- Monthly Rates (continued from previous nage) TvPe of service Rale prepayment Charge 35.00 Restart Charge 43.40 Return Trip Chsrge 11.00 Carry Ott service -up to 25jeet 3.25 Replacement Cart Charge 85.00 Retum Check Charge 35.00 FreonDisckarge Charge (Appliances) 35.00 passenger Tire Charge 5.00 Truck Tire Charge 10.00 Note 1: A Prepayment Charge of will be assessed to a fust time (new) Residential Customers. The prepayment will be applied to the custaner's accomrt in the event ofncn-payment, after one year of service, or be retumed to the customer upon termination of the residential service. Please see Item 53. Note 2: A Restart Charge will be assessed on all customers whose service is discontinued for non-payment and who subsequmWyreimtate services. Please see Item 51. Note 3: If the customer requests the Cordractor to make a Return Trip Charge due to no fault of Contractor, Contractor shall be permitted to charge the Customer a Return Trip Charge Please sea Item 70. Note 4: Contractor will assess additional charges (Item 80) when customers request that Contractor personnel provide Carry -Out Service of Residential Cam/Units not placed at the curb, the alley, or other point where the companys vehicle can be driven to within five feet of the Residential C tra/Units using improved access roads commonly available for public nae. Driveways are not considered improved access roads commonly available for public use. Note 5: If any aatomer who dostroys a Cart, does notretum the Cart upas termination, or service is shut off fm non-payment and they mfuse to surrender the Can a Replacement Cart Charge will be charged. Note 6: If a customer pays with a check, and the customers bank refuses to honor that check, the customer will be assessed a Return Check Charge. Note 7: If a customer requests Contractor to pick up any appliance that contains Freon the customer will be charged a Fmou Discharge Charge. Note 8: If a customer disposes of more than 4 passenger car tires, with or without rims, the Contractor will charge en additional passenger or Truck Tire Charge. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 9 Page 239 of 464 30 -Oct -15 Page 11 Item 150 Item 150 — Units, Bulkv Material & Apoliances. Furniture Minimum Charge Rate Per Picku Solid Waste Urnt $ 3.80 per unit N/A Balky Materials $ 14.15 percubicyard $ 14.15 Appliances, Fumibae Items $ 14.15 per item $ 14.15 Freon Discharge Charge $ 35.00 per item N/A Note 1: "Slid Waste Units" and'Bulky Materials" charges only apply when items are not properly contained for collection as defined in section 5.1.1 of the contract Please see below referenced Notes 2 and 3 for definition of sizes and contahmrem of solid waste and bulky items. Note 2: "Bugg Materials" mems bags, boxes, or handles; or empty carriers, cartons, crates or materials offered for disposal all of which maybe readily handled without shoveling (rot loose, uncomnined materials). Individual items shall not exceed two feet by two feet by five feet (2 x 2' x 9) in dimension, and not weigh more than 65 pounds. Noce 3: "Solid Waste Unit" is defined in the Comprehensive Solid Waste Agreement, but generallymeare any individual receptacle, can, plastic bag, cart, box, carton, or other container that does not holds = than 32 gallons or 4 cu ft of solid waste, and which does not weight more than 65 pounds when filled Note 4: Appliances will be charged at the per item ate noted above. Bthe Appliance hes Freon, the Freon Discharge Charge will also be applied. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 10 Page 240 of 464 30-0ct-15 Page 12 Item 160 Item 160 --Time Rates When time rates apply. Time Rates named in this Item apply: a) When material must be taken to a special site for disposal; b) When the Contractor's equipment must wait at, or return to, a customer's site to provide scheduled service due to no disability, fault or negligence on the part of the company. Actual waiting time or time taken in returning to the site will be charged for; or c) When a customer orders a single, special, or emergency pickup, or when other items in this tariff refer to this Item. How rates are recorded and charged. Time most be recorded and charged for to the nearest increment of 15 minutes. Time rates apply for the period from the time the Contractors vehicle leaves the terminal, until it returns to the terminal, or when it leaves its pre -scheduled route and drives towards the Customer's site, excluding interruptions. An interruption is a situation causing stoppage of service that is in the control of the company and not in the control of the customer. Examples include: work breaks, breakdown of equipment, and similar occurrences. Disposal fees in addition to time rates. Item 230 Disposal Fees for the disposal site or facility used will apply in addition to time rates. Rate Per Hour Each Ertra Minimum Type of Equipment ordered Truck and Driver Person Charge Single rear drive axle: $ 60.00 $ 40.00 $ 40.00 Tandem rear drive axle: S 95.00 $ 47.50 $ 47.50 Comprehensive Solid Waste Collection Agreement, Exhibit C Page 11 Page 241 of 464 30.Oct-15 Page 13 Item 200 Item 200 --Detachable Containers and/or Drop Boxes-- General Rules Availability. Contractor most maintain a supply of all sizes of Containers and Drop Boxes for which rates are listed in this Appendix. If a customer requests a Container or Drop Box of a size listed in the Contractor's Appendix, and the Contractor is unable to provide the requested size within 7 days of the customer request, the customer must be notified in writing or by telephone. Alternate -sized Containers and/or Drop Boxes. If the Contractor cannot provide the requested - sized Container or Drop Box (and that size is listed in this exhibit), the Contractor must provide alternate -sized Containers or Drop Boxes, sufficient to meet the capacity originally requested by the customer, at the same rates as would have applied for the requested Container or Drop Box. Disposal fees due on alternate -sized Drop Boxes. If the Contractor provides altemate-sized Drop Boxes, the customer is responsible for all applicable disposal fees resulting from the use of the alternate Drop Boxes. Rates on partially -filled Containers and/or Drop Boxes. Full pickup and rental rates apply regardless of the amount of waste material in the Container or Drop Box at pickup time. Rates for compacted materials. Rates for compacted material apply only when the material has been compacted before its pickup by the Contractor (Sce Section 4.25 of Contract). Rates for loose materiaL Loose material dumped into the Contractor's packer truck is subject to the rates for non -compacted material even though the material may be compacted later in the packer truck Permanent and Temporary Service. The following rules apply: a) If a customer requests a Container or Drop Box for less than 90 days, the customer will be billed at Temporary Service rates. b) If a Temporary Service customer notifies the Contractor that it has decided to retain the Container or Drop Box for more than 90 days, Permanent Service rates will be assessed from the 91st day until the end of the period the customer retains the Container or Drop Box. c) If a customer requests a Container or Drop Box for more than 90 days, the customer will be billed under permanent rates. If that customer cancels service before the end of the 90day period, the company may not rebill the customer at Temporary Service rates. The intent of the customer at the time service was requested applies. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 12 Page 242 of 464 30 -Oct -15 Page 14 Item 205 Item 205-- Roll -Out Charge, and Gate CharQc Charges for Carts and Containers The Contractor will assess Roll -Out Charges where, due to circumstances outside of the control of the driver, the driver is required to move the Cart or Container mote than five (5) feet, but less than twenty-five (25) feet in order to reach the truck The charge for this Roll -Out Charge is: 3.25 per Cart or Container, Per pickup The Contractor will assess a Gate Charge where the driver is required to unlock a container, lorlang bar, enclosure or open a gate in order to access a Cart or Container. The charge for this Gate Charge is: per pimp Comprehensive Solid Waste Collection Agreement, Exhibit C Page 13 Page 243 of 464 30 -Oct -15 Page 15 Item 207 Item 207 -- Excess Weight — Reiectim of Loud. Chasers to Transport The Contractor reserves the tight to reject pickup of any Detachable Container, stationary packer, or Drop Box which, upon reasonable inspection: 1) Appears to be overloaded 2) Would cause applicable vehicle load limitations to be exceeded; 3) Would cause the eomparty to violate load limitations or result in unsafe vehicle operahcn; 4) Would negatively impact or otherwise damage road surface integrity; and/or 5) Contains anything that appears not to be MSW or could do damage to the vehicle. For the purposes of this Appendix the following mmrimum weights apply Type6l:e of Maximum Weight Container, Drop Boz, Allowance per or Cort Receptacle (m Pounds) Carts - 64 Gallon 120 lbs Carts - 96 Gallon 180 0s Detachable Containers - 1 to 8 on yds 1,200 lbs Drop Boxes - All Sizes 20,000 lbs Overfilled or overweight, charges if transported. If the Container, Drop Box, or Cart exceeds the limits stated above, is filled beyond the marked fill line, or the top is unable to be closed, bit the Contractor transports the materials, the following additional charges will apply. Type/Size of Container, Drop Boz, or Car! Chome Certs - All Sizes 5.00 Per Pickup Detachable Container - 1 to 8 cu yds 814.15 Per Yard Drop Boxes -AO Sizes 10.15 Per Yard Compacted material 28.30 Per Yard Comprehensive Solid Waste Collection Agreement, Exhibit C Page 14 Page 244 of 464 30 -Oct -15 Page 16 Item 210 Item 210 — Washing and Sanitizing Detachable Containers and/or Drop Boxes Upon customer request, the Contractor will provide washing and sanitizing service at the following rates: Size or Type of Container or Drop Boa Rate Stearn Cleaning -Detachable Container $ 40.50 Stearn Cleaning -Drop Box $ 100.50 Nota 1: The rate for washing and sanitizing Detachable Container; and Drop Boxes includes the fee for delivering the newly cleaned Detachable Container or Drop Box back to the customer's location Comprehensive Solid Waste Collection Agreement, Exhibit C Page 15 Page 245 of 464 30 -Oct -15 Page 17 Item 230 Item 230 — Disposal Fees Charges in this item apply when other items in this Appendix specifically refer to this item. Type of Material Fee for Disposal MSW 44.31 Green Waste NN/A Commingled Recycle NN/A Note 1: The Disposal Fee includes the Pasco Utility Tax of 8.5% Comprehensive Solid Waste Collection Agreement, Exhibit C Page 16 Page 246 of 464 30 -Oct -15 Page 18 Item 240 Item 240 — Commercial Cart Service — Dumped in Company's Vehicle Non -compacted Material Rates stated per Commercial Cart per month Service Area: City of Pasco Permanent Service Pickup - One Time per Week Pickup - Two Times per Week Special Pickups Additional Pickup Repan Trip Charge Restart Charge Temporary Service Delivery $ 11.00 $ 11.00 Pickup Rate $ 7.00 $ 12.97 Rent Per Calendar Day $ 5.50 $ 5.50 Prepayment $ 35.00 $ 35.00 Notel: Permanent Service: Service is defined as no less than scheduled, every week pickup, Customer will be charged for service requested, even if fewer containers are serviced on a particular trip. No credit will be given for partially -filled containers. Note 2: Permanent Service: A Prepayment of $35.00 will be assessed to all fust time new) Commercial Customers. The Prepayment will be applied to the customets account in the event of non-payment, after one year of service, or be returned to the customer upon terrnination of the commercial service. Note 3: Special Pickup is the Each Addt'l Pickup rate plus Item 70 Return Trip - Carts. Note 4: Restart subject to Item 51 - Restart Charges Note 5: A Prepayment will be assessed on Temporary Service accounts as noted above. Accessorial Charges (lids, unlockinm unlatching. etcl Note 6: A Gate Charge of $3.25 will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate in order to access a Cart or Container. Note 7: A Return Trip Charge of $11_00 will be assessed when the company driver is required to make a return trip, that does not require the special dispatch of a truck, to pick up a Cart or material that was unavailable for collection for reasons under the control of the customer. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 17 Size or Tvi a of Container 64 Gal Cart 96 Gal Cart F 21.70 40.15 43.40 80.30 16.00 20.27 5.00 9.27 11.00 11.00 43.40 43.40 Temporary Service Delivery $ 11.00 $ 11.00 Pickup Rate $ 7.00 $ 12.97 Rent Per Calendar Day $ 5.50 $ 5.50 Prepayment $ 35.00 $ 35.00 Notel: Permanent Service: Service is defined as no less than scheduled, every week pickup, Customer will be charged for service requested, even if fewer containers are serviced on a particular trip. No credit will be given for partially -filled containers. Note 2: Permanent Service: A Prepayment of $35.00 will be assessed to all fust time new) Commercial Customers. The Prepayment will be applied to the customets account in the event of non-payment, after one year of service, or be returned to the customer upon terrnination of the commercial service. Note 3: Special Pickup is the Each Addt'l Pickup rate plus Item 70 Return Trip - Carts. Note 4: Restart subject to Item 51 - Restart Charges Note 5: A Prepayment will be assessed on Temporary Service accounts as noted above. Accessorial Charges (lids, unlockinm unlatching. etcl Note 6: A Gate Charge of $3.25 will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate in order to access a Cart or Container. Note 7: A Return Trip Charge of $11_00 will be assessed when the company driver is required to make a return trip, that does not require the special dispatch of a truck, to pick up a Cart or material that was unavailable for collection for reasons under the control of the customer. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 17 Page 247 of 464 30 -Oct -15 Page 19 Item 240 Item 240 -Detachable Container Service -- Dumped in Company's Vehicle (continued) Non -compacted Material Rates stated per Detachable Container, per month Service Area: City of Pasco Size or Type of Container Permanent Service 1•5 Yard 2 Yard 3 Yard 4 Yard 6 Yard S Yard Pickup - One Time per Week $ 110.00 $ 130.00 $ 150.00 $ 185.00 $ 235.00 300.00 Pickup - Two Times per Week $ 212.00 $ 250.00 $ 290.00 $ 365.00 $ 465.00 585.00 Pickup - Three Times per Week $ 320.00 $ 375.00 $ 435.00 $ 540.00 $ 690.00 880.00 Pickup -Four Timesper Week $425.00 $495.00 $570.00 $705.00 $ 910.00 1,150.00 Pickup - Five Times per Week $ 520.00 $ 610.00 $ 705.00 $ 870.00 $ 1,140.00 1,425.00 Special Pickups $ 47.24 $ 51.85 $ 56.47 $ 64.55 $ 76.08 91.09 Additional Pickup $ 25.39 $ 30.00 $ 34.62 $ 42.70 $ 54.23 69.24 Return Trip Charge $ 21.85 $ 21.85 $ 21.85 $ 21.85 $ 21.85 21.85 Restart Charge $ 43.40 $ 43.40 $ 43.40 $ 43.40 $ 43.40 43.40 Temporary Service Delivery #N/A #N/A $ 21.85 $ 21.85 $ 21.85 21.85 Pickup Rate #N/A #N/A $ 55.25 $ 65.25 $ 80.25 100.25 Rent Per Calendar Day #N/A #N/A $ 5.50 $ 5.50 $ 5.50 5.50 Prepayment #N/A #N/A $ 125.00 $ 125.00 $ 125.00 125.00 Notel: Permanent Service: Service is defined as no less than scheduled, every week pickup. Customer will be charged for service requested, even if fewer containers am serviced on a particular trip. No credit will be given for partially -filled containers. Note 2: Special Pickup is the Each Addfl Pickup rate plus Item 70 Return Trip - Container Note 3: Restart subject to Item 51 - Restart Charges Note 4: Permanent Service: A Prepayment is equal to the first month's cost of service, and will be assessed to all first time (new) Commercial Customers. The prepayment will be applied to the customer's account in the event of non-payment, after one year of service, or be returned to the customer upon termination of the Commercial Service. Please see Items 240 and 255. Note 5: A Prepayment will be assessed of Temporary Service amounts as noted above. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 18 Page 248 of 464 30 -Oct -15 Page 20 Item 240 Accessorial Charges (lids, unlocking. unlatchine. etc.) Note 6: A Gate Charge of ELM will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate in order to access a Cart or Container. Note 7: A Return Trip Charge of $21_85 will be assessed when the company driver is required to make a return trip, that does not require the special dispatch of a Vick, to pick up a Container or material that was unavailable for collection for reasons under the control of the customer. Note 8: If customer requires a Locking Container, a one time fee of $%.00 will be assessed. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 19 Page 249 of 464 30 -Oa -15 Page 21 Item 255 Item 255 -- Detachable Container Service -- Dumped in Company's Vehicle Compacted Material Rates stated per Detachable Container, per month Service Area: City of Pasco Note 2: Special Pickup is the Each Addfl Pickup rate plus Imm 70 Return Trip - Container. Note 3: Restart subject to Item 51 - Restart Charge. Nom 4: Permanent Service: A Prepayment is equal to the first month's cost of service, and will be assessed to all fust time (new) Commercial Customers. The prepayment will be applied to the customer's account in the event of non-payment, after one year of service, or be returned to the customer upon termination of the Commercial Service. Please see Items 240 and 255. Accessorial charges assessed (lids. unlockine. unlatching. etc.) Nom 5: A Gate Charge of $3_25 will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gam in order to access a Cart or Container. Nom 6: A Return Trip Charge of $21_85 will be assessed when the company driver is required to make a return trip, that does net require the special dispatch of a truck, to pickup a Can or Container or material that was unavailable for collection for reasons under the mnbnl of the cadnmer Nom 7: A D mmisnect(Reconnect Fee of $3.25 per pickup will be assessed when Containers are attached to a compactor that requires disconnecting or reconnecting. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 20 Sim or Type of Container Permanent Service 2 Yard 3 Yard 4 Yard 6 Yard Pickup - One Time per Week 170.35 $ 205.35 $ 250.35 S 325.35 Pickup - Two Times per Week 340.70 $ 410.70 $ 500.70 $ 650.70 Special Pickups 61.19 $ 69.27 $ 79.67 $ 96.99 Additional Pickup 39.34 $ 47.42 $ 57.82 $ 75.14 Return Trip Charge 21.85 $ 21.85 $ 21.85 $ 21.85 Restart Charge 43.40 $ 43.40 $ 43.40 $ 43.40 Note 1: Permanent Service: Service is defmcd as no less than scheduled, every week pickup. Customer will be charged for service requested, even if fewer containers are serviced on a particular trip. No credit will be given for partially -filled containers. Note 2: Special Pickup is the Each Addfl Pickup rate plus Imm 70 Return Trip - Container. Note 3: Restart subject to Item 51 - Restart Charge. Nom 4: Permanent Service: A Prepayment is equal to the first month's cost of service, and will be assessed to all fust time (new) Commercial Customers. The prepayment will be applied to the customer's account in the event of non-payment, after one year of service, or be returned to the customer upon termination of the Commercial Service. Please see Items 240 and 255. Accessorial charges assessed (lids. unlockine. unlatching. etc.) Nom 5: A Gate Charge of $3_25 will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gam in order to access a Cart or Container. Nom 6: A Return Trip Charge of $21_85 will be assessed when the company driver is required to make a return trip, that does net require the special dispatch of a truck, to pickup a Can or Container or material that was unavailable for collection for reasons under the mnbnl of the cadnmer Nom 7: A D mmisnect(Reconnect Fee of $3.25 per pickup will be assessed when Containers are attached to a compactor that requires disconnecting or reconnecting. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 20 Page 250 of 464 30 -Oct -15 Page 22 Item 260 Item 260 -- Drop Box Service -- To Disposal Site and Return Non -Compacted Material Rates stated per Drop Bos, per pickup Service Area: City of Pasco Temporary Service Delivery Charge 55.00 Size or Type of Container Permanent Service 11 Yard/15 Yard 20 Yard 30 Yard 40 Yard 50 Yard Delivery Charge 55.00 55.00 F 55.00 55.00 55.00 Haul Charge 140.00 145.00 150.00 160.00 170.00 Trip Charge 55.00 55.00 55.00 55.00 55.00 Minimum Monthly Charge 140.00 145.00 150.00 160.00 170.00 Prepayment 250.00 250.00 250.00 250.00 250.00 Restart Charge 43.40 43.40 43.40 43.40 43.40 Temporary Service Delivery Charge 55.00 55.00 55.00 55.00 55.00 Haul Charge 140,25 145.25 150.25 160.25 170.25 Trip Charge 55.00 55.00 55.00 55.00 55.00 Daily Rental Charge 7.50 7.50 7.50 7.50 7.50 Prepayment 250.00 250.00 250.00 250.00 250.00 Note l: Rates in Osis item are subjectio Disposal Fees named in Item 230. Note 2 Temporary Service: means providing Drop Box service at the custwnea's request, for a period of ninety days or less. Permanem Service: means Drop Boz service provided at customers request for more than 90 days. Note 3: For Penament Service accounts, if a Drop Box is retained by a customer for a full month and no pickups are ordered, a Minimum Monthly Charge will be assessed Note 4: Restart subject to Item 51 - Restart Charge - Drop Box. Note 5: Rates named in this item apply for all hauls within the City Limits of Pasco, to the disposal site. Any miles driven outside the City limits of Pasco will be charged for at 53.25 per mile. Mileage Charge is in addition to all regular charges. Note 6: A Prepayment will be assessed on Temporary Service accounts as noted above. Accessorial charges assessed Bids, unlocking, mlatchi ur, etc.) Note 7: A Gate Charge of S125 will be assessed on each pickup where the driver is required to unlock a container, lacking bar, enclosure or open a gate in order to access a Cart or Container. Noe g; A Trip Charge of SMA will be assessed when the company driver makes a trip to the custa nets location, but due to reasons under the control of the customer, was not able to complete the haul. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 21 Page 251 of 464 3"ct-15 Page 23 Item 270 Item 270 -- Drop Box 5 -- To Disposal Site and Rem n Compacted Material Rates stated per Drop Box, per pickup Service Area: City of Pasco Note 1: Rales in this item are subject to Deposal Fees named in Item 230 Note 2: If a Drop Box is retained by a customer for a full mouth and no pickups are ordered, and the Drop Box is owned by the Contractor, a Monthly Charge will be assessed. Note 3: Restart subject to Item 51 - Restart Charge - Drop Box Note 4: Rates named in this item apply for all hauls within the City Limits of Pasco, to the disposal site. Any miles driven outside the City limits of Pasco will be charged for atm par mile. Mileage Charge is in addition to all regular charges. Aawaorfal eharees assessed [lids. uNockhm, unlatching, etc) Note 5: A Gate Charge of 5325 will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate in order to access a Cart or Container. Note 6: A Compactor Disronnect/Reeonne it Charge of JLL5 per haul will be assessed when Drop Boxes with compactors require connecting or disconnecting. Note 7: A Turn Around Charge of S30,QQyerhaul will be assessed when company driver has to turn the Drop Boz around at order to empty and/or roc ct the Drop Box. Note g: A Trip Charge of $55_00 will be assessed when the company driver makes a hip to the customers location, but due to reasons under the control of the customer, was nor able to complete the haul. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 22 Sim or Type of Container Permanent Service 15 Yd 20 Yd 20 Yd 30 Yd/35 Yd 40 Yd Delivery Charge i'35,00 55.00 55.00 55.00 55.00 Haul Charge 165.00 165.00 165.00 165.00 165.00 Trip Charge 55.00 55.00 55.00 55.00 55.00 Prepayment 250.00 250.00 250.00 250.00 250.00 Restart Charge 43.40 43.40 43.40 43.40 43.40 Note 1: Rales in this item are subject to Deposal Fees named in Item 230 Note 2: If a Drop Box is retained by a customer for a full mouth and no pickups are ordered, and the Drop Box is owned by the Contractor, a Monthly Charge will be assessed. Note 3: Restart subject to Item 51 - Restart Charge - Drop Box Note 4: Rates named in this item apply for all hauls within the City Limits of Pasco, to the disposal site. Any miles driven outside the City limits of Pasco will be charged for atm par mile. Mileage Charge is in addition to all regular charges. Aawaorfal eharees assessed [lids. uNockhm, unlatching, etc) Note 5: A Gate Charge of 5325 will be assessed on each pickup where the driver is required to unlock a container, locking bar, enclosure or open a gate in order to access a Cart or Container. Note 6: A Compactor Disronnect/Reeonne it Charge of JLL5 per haul will be assessed when Drop Boxes with compactors require connecting or disconnecting. Note 7: A Turn Around Charge of S30,QQyerhaul will be assessed when company driver has to turn the Drop Boz around at order to empty and/or roc ct the Drop Box. Note g: A Trip Charge of $55_00 will be assessed when the company driver makes a hip to the customers location, but due to reasons under the control of the customer, was nor able to complete the haul. Comprehensive Solid Waste Collection Agreement, Exhibit C Page 22 Page 252 of 464 Exhibit D WACOD Adjustment Formula The following definitions apply to the calculation of the WACOD Adjustment: If the following is true: Change in Volume = (TONScp- TONSBP )/TONSBP>= 5% Then, the following calculation shall be made by the Contractor: WACOD Adjustment = WACOD Expense X WACOD Change The following definitions shall apply to the above formulas: WACOD Expense = the proportion of approved rates attributable to gross Solid Waste disposal expense, hereby fixed at _%. WACOD Change = (WACODcp- WACODBP)/WACODBP WACODBP = MSWBP X TONSMSW-BP+ RCYBP X TONSRcy-BP + GRNBP X TONSGRN- BP WACODcp= MSWcP X TONSMsW-cP + RCYcP X TONSRcv-cP + GRNcP X TONSGRN- City Planner TONSBP = TONSMSW-BP+ TONSRcv-BP + TONSGRN-BP TONScp = TONSMsW-cP+ TONSRCY-cP + TONSGRN-CP MSWBP = Contractor's disposal rate for Solid Waste during the Base Period TONSMsw-BP= Volume of Solid Waste collected during the Base Period RCYBP = Contractor's processing rate for Recyclable Materials during the Base Period TONSRCv-BP= Volume of Recyclable Materials processed during the Base Period GRNBP = Contractor's processing rate for Green Waste during the Base Period TONSGRN-BP = Volume of Green Waste processed during the Base Period MSWCP = Contractor's disposal rate for Solid Waste during the Comparison Period TONSMsw-cP= Volume of Solid Waste collected during the Comparison Period RCYCP = Contractor's processing rate for Recyclable Materials during the Comparison Period TONSRcy-cP = Volume of Recyclable Materials processed during the Comparison Period GRNCP=Contractor's processing rate for Yard Waste during the Comparison Period TONSGRN-CP = Volume of Yard Waste processed during the Comparison Period If the City has not added separate collection services for Recyclable Materials and/or Yard Waste during the Base Period, then the values for those respective variables representing the volume of such materials will be set to zero, and shall remain zero for the term of this Contract, i.e.: TONSRCY-BP = TONSGRN-BP = 0 Comprehensive Solid Waste Collection Agreement, Exhibit D Page 1 Page 253 of 464 Until such time as the City adds separate collection service for Recyclable Materials and/or Yard Waste, the values for those respective variables representing the volume of such materials will be set to zero, i.e.: TONSRcr-cr = TONSoRN-cp = 0 In either case, the volume of the Recyclable Materials and Yard Waste shall be included in the measured volume of Solid Waste until such time as the City implements such separate collections services. Comprehensive Solid Waste Collection Agreement, Exhibit D Page 2 Page 254 of 464 Exhibit E Service Accord The Solid Waste Services that the Contractor will provide to the City at NO Direct Costs are as follows: 1) Solid Waste gathered by the City from alley clean-ups; 2) Solid Waste gathered by the City from street sweeping; 3) Solid Waste gathered by the City from sewer debris; and 4) Solid Waste gathered by the City and deposited in specially designated Drop -Box Containers supplied by Contractor. These Solid Waste Services at No Direct costs include hauling and tip fees. The Solid Waste Services at NO Direct Costs are limited to 1,500 tons (Base Tonnage) in any calendar year. See section 5.4 of the contract for more details. The eligible Solid Waste Service locations within the City are as follows: 1) The City Shop(s) 1025 South Grey, Pasco, WA 99301 2) The City Yard(s) Rd 108 and Crescent, Pasco, WA 99301 Comprehensive Solid Waste Collection Agreement, Exhibit E Page 1 Page 255 of 464 Exhibit F Fuel Surcharge City of Pasco 1 Base Fuel Expense Base Fuel Expense 2 Percentage Increase in Cost of Fuel Current Fuel Price Minus Base Fuel Price Equals Fuel Price Difference Divided By Base Fuel Price (Line 6) Equals Fuel Percent Change Fuel Surcharge 3 Calculation 5.87% Fixed 3.79 Variable 3.79 Fixed Base Fuel Expense (Line 1) Multiplied By Percent Change in Fuel Price x Fuel Surcharae Variable 3.79 Fixed 0.00% Variable 5.87% 0.00% Comprehensive Solid Waste Collection Agreement, Exhibit F Page 1 Page 256 of 464 Exhibit G Curbside Recycling Provisions Page intentionally left blank) Comprehensive Solid Waste Collection Agreement, Exhibit G Page 1 Page 257 of 464 Exhibit H Green Waste Recycling Provisions Page intentionally left blank) Comprehensive Solid Waste Collection Agreement, Exhibit H Page 1 Page 258 of 464 Exhibit I Electronic Waste Collection Provisions E -Waste) Page intentionally left blank) Comprehensive Solid Waste Collection Agreement, Exhibit I Page 1 Page 259 of 464 AGENDA REPORT FOR: City Council November 26, 2024 TO: Adam R. Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Adam Lincoln, City Manager City Manager SUBJECT: Cancellation of December 16 and 23, 2024, Regularly Scheduled Council Meeting and Workshop I. REFERENCE(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve the cancellation of the December 16th and 23rd Council Regular Meeting and Workshop respectively. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: The City Council has historically cancelled the second regular December meeting of the City Council and the two December workshop meetings. When there has been a need to meet, a special meeting has been scheduled at the convenience of the Council. The Council agendas for the October and November meetings were increased, as well as the agenda for tonight's meeting to bring to conclusion the 2024 Council work plan. V. DISCUSSION: The meeting and workshop dates for this year include the December 16th Regular Meeting and December 23rd Workshop. There are no items pending for these dates. Staff requests Council consideration and approval of the motion as presented. Page 260 of 464 AGENDA REPORT FOR: City Council November 20, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Craig Raymond, Deputy Director Community & Economic Development SUBJECT: Public Meeting & Resolution No. 4542 - Accepting a Notice of Intent to Commence Annexation Wright and Big Sky Developers Glacier Park Convention Drive 10% Annexation Petition (5 minutes) I. REFERENCE(S): Proposed Resolution to Commence Annexation Proceedings Accepting the Boundary as Petitioned, with Exhibit A & B II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT A PUBLIC MEETING MOTION: I move to approve Resolution No. 4542, accepting a notice of intent to commence annexation proceedings for the Glacier Park Convention Drive Annexation, providing a determination on the boundary to be annexed, and whether simultaneous zoning and the assumption of bonded indebtedness will be required. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: the in located 115160013 and 115160102 Nos. Parcels of owners The Southeast quarter of the Southeast quarter of Section 4, Township 9 North, Range 29 East W.M., south of Kau Trail Road and north of Burns Road have submitted a Notice of Intent to Commence Annexation of an area consisting of Parcel No. 115160102 and a portion of Parcel No. 115160013, more specifically described in Exhibit A, in Franklin County, WA 99301. Per RCW 35A.14.120, City Council shall set a date, not later than sixty days Page 261 of 464 after the filing of the request, for a meeting with the initiating parties to determine whether the City Council will accept, reject, or geographically modify the proposed annexation. On November 18, 2024, City Council Passed Resolution No. 4531 setting 7:00 PM, December 2, 2024, as the time and date for a public meeting to consider a Notice of Intent to Commence Annexation Proceedings for the Glacier Park Convention Drive Annexation Area. V. DISCUSSION: The petition method of annexation is a two-step process requiring the submittal of a Notice of Intent to Commence Annexation proceedings followed at a later date by consideration of an actual annexation petition. Upon receipt of a Notice of Intent to Commence Annexation - Council is required by law to set a date to hold a public meeting to consider: 1. Whether the City will accept, reject, or geographically modify the proposed annexation; 2. Whether it will require the simultaneous adoption of a proposed zoning regulation; and 3. Whether it will require the assumption of all or any portion of existing City indebtedness by the area to be annexed. Following Council review of the proposed annexation and passage of a resolution generally accepting the boundary, staff will prepare the annexation petition. A date will then be set for a public hearing for Council to formally consider and decide upon the annexation request. Page 262 of 464 Resolution – Glacier Park Accept & Proceed (ANX 2024-003) - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING A NOTICE OF INTENT TO COMMENCE ANNEXATION PROCEEDINGS FOR THE WRIGHT AND BIG SKY DEVELOPERS GLACIER PARK CONVENTION DRIVE ANNEXATION, PROVIDING A DETERMINATION ON THE BOUNDARY TO BE ANNEXED, AND WHETHER SIMULTANEOUS ZONING AND THE ASSUMPTION OF BONDED INDEBTEDNESS WILL BE REQUIRED. WHEREAS, the owners of property described in Exhibit A as attached to this Resolution have filed a Notice of Intent to Commence Annexation Proceedings to the City of Pasco; and WHEREAS, on November 18, 2024 the City Council set an December 2, 2024, public meeting date with the initiators to consider (1) whether the City will accept, reject, or geographically modify the proposed annexation; (2) whether it will require the simultaneous adoption of a proposed zoning regulation; and (3) whether it will require the assumption of all or any portion of existing City indebtedness by the area to be annexed; and WHEREAS, the City Council has reviewed the Notice of Intent, conducted a public meeting with the initiators, and has determined it is in the best interests of the City to accept the proposal as described in Exhibit A and depicted in Exhibit B, attached hereto; and WHEREAS, the City has determined that the proposed annexation site is within the Pasco Urban Growth Area, annexation of the proposed site would be a natural extension of the City and said annexation would be in the best interest of the Pasco community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City will accept the proposed territory to be annexed as described in Exhibit A and depicted in Exhibit B attached hereto. Be It Further Resolved, that the territory to be annexed will not require simultaneous adoption of zoning regulations. Zoning will be determined through a public hearing process with input from affected property owners. Be It Further Resolved, that the annexation area will be required to assume a proportionate share of existing City bonded indebtedness. Be It Further Resolved, that this Resolution shall take effect immediately. Page 263 of 464 Resolution – Glacier Park Accept & Proceed (ANX 2024-003) - 2 PASSED by the City Council of the City of Pasco, Washington, on this 2nd day of December 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 264 of 464 EXHIBIT “A” DRAFT LEGAL DESCRIPTION Parcel 115160102: The East 320.9 feet of the South Half of the Southeast Quarter of the Southeast Quarter, Section 4, Township 9 North, Range 29 East, W.M., Franklin County, Washington. Comprising approximately 4.99 acres. Parcel 115160013: That portion of the Northeast Quarter of the Southeast Quarter of the Southeast Quarter of Section 4, Township 9 North, Range 29 East, W.M., Franklin County, Washington, described as follows: Commencing at the Southeast Corner of said Section 4; thence North 00°54'30" East along the East Line of said Southeast Quarter a distance of 679.06 feet to the Southeast Corner of the Northeast Quarter of the Southeast Quarter of the Southeast Quarter of said Section and the True Point of Beginning; thence leaving said East Line, South 89°35'43" West along the South Line of said Subdivision a distance of 83.02 feet; thence North 00° 54'30" East along a line which is parallel with and 83.00 feet westerly of the East Line of said Subdivision a distance of 623.32 feet to the beginning of a curve concave to the southwest having a radius of 25.00 feet; thence northwesterly along the arc of said curve through a central angle of 91 °23'30" a distance of 39.88 feet to a point on a line which is parallel with and 30.00 feet southerly of the North Line of the Southeast Quarter of the Southeast Quarter of said Section 4; thence North 89°31'00" East along said Parallel Line a distance of 108.64 feet to the East Line of said Subdivision; thence South 00°54'30" West along said East Line a distance of 649.05 feet to the Point of Beginning and the end of this description. Comprising approximately 1.24 acres (54,009 square feet). Page 265 of 464 Pa g e 2 6 6 o f 4 6 4 ➢The legislative body shall set a date, not later than sixty days after the filing of the request, for a meeting with the initiating parties to determine whether the City Council will accept, reject, or geographically modify the proposed annexation. On November 18, 2024 City Council Passed Resolution 4531 setting 7:00 PM, December 2, 2024, as the time and date for a public meeting to consider a Notice of Intent to Commence Annexation Proceedings for the Wright and Big Sky Developers Glacier Park Convention Drive annexation area. ANX 2024-003 – Glacier Park Convention Drive Pa g e 2 6 7 o f 4 6 4 Proposed Glacier Park Convention Drive Annexation Area -Parcel 115160102 & -portion of Parcel 115160013 Pa g e 2 6 8 o f 4 6 4 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Adam Lincoln, City Manager City Manager SUBJECT: Ordinances Nos. 4746 & 4747 - 2025 Administrative/Professional Wage and Management Salary Plans (5 minutes) I. REFERENCE(S): Ordinance - Wage Plan for Non-Represented, Non-Management Positions for 2025 Ordinance - Wage Plan for Management Positions for 2025 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. 4746, concerning the wages for certain for personnel calendar administrate/professional, non-management year 2025. -AND- MOTION: I move to adopt Ordinance No. 4747, concerning the salaries for management position for the calendar year 2025. III. FISCAL IMPACT: $630k for 3% COLA for 2025 IV. HISTORY AND FACTS BRIEF: The City of Pasco (City) utilizes “comparable” cities when negotiating union contracts for police and fire employees. To maintain competitiveness, lessen wage compression, and maintain rough parity throughout the organization and industry, similar comparable cities are used in evaluating the salary and total compensation works/facilities, plans of other City work groups (public administrative/professional, and management positions). Organized bargaining units (police, fire, and public works/facilities) negotiate Page 269 of 464 specific increases to salaries, benefits, and cost of living allowance (COLA) in bargaining these Council years. three approves two every contracts to The bargaining contracts as they are negotiated. City's administrative/professional and management employees do not operate under a collective bargaining agreement and instead, adjustments to compensation are accomplished through Council action in the form of an ordinance, typically following the budget process at the end of the calendar year. A COLA serves to maintain spending power in the face of inflation, while a market adjustment is used to calibrate classifications that require movement up or down the salary schedule for purposes of internal and external equity. There are other aspects of compensation beyond salary, such as health benefits, vacation accrual, flexible schedules, deferred compensation, etc. that impact workforce retention and the recruitment of quality candidates. Any employer, public or private, failing to consider market conditions or inflationary impacts on salaries, over time, will see their competitiveness as an employer erode, which in turn impacts their ability to recruit quality candidates and retain quality staff. Further, such inaction can cause wage compression, resulting in an imbalance between positions requiring similar skills and having comparable responsibilities, and have a detrimental impact on morale and productivity. All of this leads to an unstable workforce as people leave for better conditions, which adversely impacts an employer's ability to provide quality services. For the reasons outlined above it is recommended that when economic conditions permit, COLA and market adjustments be made to assure the competitiveness of the administrative/professional and management salary scales. The City utilizes the All Urban Consumers (CPI-U) West–Size Class B/C Consumer Price Index (CPI). Using this index, the reported annual rate of inflation for October 2023 to October 2024 is 1.7%, CPI for the same period last year was 2.6%. Staff recommend Administrative/Professional (Exempt and Non-Exempt) and Management employee group to receive a COLA adjustment of either 2.0% or 3.0% to maintain the City's competitiveness as an employer. V. DISCUSSION: At the November 25, 2025, Council Workshop, staff presented options of 0%, 2% and non-represented for administrative/professional 3% or COLA management staff. Council discussed the options and a majority of Council concurred to include a 3% administrative/professional COLA for both non-represented and Page 270 of 464 management staff. The two proposed ordinances will adopt the 3% COLA for both employee groups. Page 271 of 464 Ordinance Admin/Professional & Non-Mngt Wages 2025 - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, CONCERNING WAGES FOR CERTAIN ADMINISTRATIVE/ PROFESSIONAL, NON-MANAGEMENT PERSONNEL FOR CALENDAR YEAR 2025. WHEREAS, after due consideration of the cost-of-living index and wage rates paid by comparable cities, and the history of wage adjustments for the City’s bargaining units, the City Manager has recommended a 3% cost of living adjustment in the administrative/professional, non- management wage plan; and WHEREAS, the City Council finds that the proposed cost of living adjustment is appropriate in consideration of the Department of Labor’s Consumer Price Index and comparability within the City and with other jurisdictions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The wage scale for those administrative and professional, non-management positions is specified in Exhibit A attached hereto, which is incorporated by reference as if fully set forth herein. The City Manager shall designate the appropriate salary in Exhibit A for each employee covered by this Ordinance, considering the employee’s time in the position, the current hourly wage, and the evaluation of the employee’s performance. Section 2. The step increases set forth in Exhibit A are dependent upon a satisfactory performance evaluation. Section 3. The wage scale set forth in Exhibit A shall be effective January 5, 2025, (1st full pay period of 2025) and remain in effect until this Ordinance is amended or superseded by a subsequent Ordinance. Section 4. This Ordinance supersedes any conflicting prior Ordinance or conflicting provision of a prior Ordinance. Section 5. Severability. If any section, subsection, sentence, clause, phrase, or word of this Ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this Ordinance. Section 6. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Page 272 of 464 Ordinance Admin/Professional & Non-Mngt Wages 2025 - 2 Section 7. 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: ___________________________ Page 273 of 464 ADMINISTRATIVE/PROFESSIONAL WAGE SCALE (Non-Represented) - 2025 Effective 01.05.2025 - 3% COLA Position Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Animal Shelter Kennel Technician Animal Shelter Customer Service Technician 17 20.56 21.19 21.85 22.53 23.22 23.94 24.68 Department Assistant I 20 21.82 22.49 23.19 23.90 24.64 25.40 26.19 Lead Animal Shelter Kennel Technician 22 22.70 23.40 24.12 24.87 25.64 26.43 27.25 Animal Control Officer 25 24.09 24.83 25.60 26.39 27.21 28.05 28.92 Administrative Assistant I Cemetery Customer Service Representative 26 24.57 25.33 26.11 26.92 27.75 28.61 29.49 Probation Services Clerk 27 25.06 25.83 26.63 27.46 28.31 29.18 30.08 Department Assistant II Deputy Court Clerk 28 25.56 26.35 27.17 28.01 28.87 29.77 30.69 Park Ranger Utility Account Specialist 31 27.13 27.96 28.83 29.72 30.64 31.59 32.56 Accounting Assistant Engineering Technician I Permit Coordinator Lead Court Clerk Development Services Technician I 33 28.22 29.09 29.99 30.92 31.88 32.86 33.88 Animal Control and Operations Lead 35 29.36 30.27 31.20 32.17 33.16 34.19 35.25 Administrative Assistant II Human Resources Administrative Coordinator 37 30.55 31.49 32.47 33.47 34.51 35.57 36.67 Lead Permit Coordinator 38 31.16 32.12 33.12 34.14 35.19 36.28 37.41 Court Services Specialist Registered Nurse 39 31.78 32.76 33.78 34.82 35.90 37.01 38.15 Engineering Technician II Pre-Treatment Technician Code Enforcement Officer Development Services Technician II 40 32.42 33.42 34.45 35.52 36.62 37.75 38.92 Court Probation Officer Payroll Specialist Deputy City Clerk Planner I Recreation Specialist Court Community Resource Coordinator Communications & Outreach Coordinator 41 33.06 34.09 35.14 36.23 37.35 38.50 39.70 Human Resources Specialist Lead Recreation Specialist Executive Administrative Assistant 42 33.73 34.77 35.84 36.95 38.10 39.27 40.49 Procurement Specialist Planner II Management Analyst I Fire Logistics Coordinator 43 34.40 35.46 36.56 37.69 38.86 40.06 41.30 Building Inspector Construction Inspector Lead Code Enforcement Officer Information Technology Specialist (PC, Network, Database, GIS, & REV) 45 35.79 36.90 38.04 39.22 40.43 41.68 42.97 Planner III Engineering Tech III Plans Examiner Project Support Specialist Development Services Technician III *Staff Accountant *Management Analyst II 49 38.74 39.94 41.17 42.45 43.76 45.11 46.51 Human Resources Generalist 50 39.52 40.74 42.00 43.30 44.64 46.02 47.44 Environmental Compliance Coordinator *Block Grant Administrator 53 41.93 43.23 44.57 45.95 47.37 48.83 50.34 Instrumentation Technician Engineer I Public Works Project Coordinator CIP Inspection Coordinator Executive Assistant - City Manager *Public Works Financial Analyst *Senior Human Resources Generalist *Digital Media Administrator 54 42.77 44.10 45.46 46.87 48.31 49.81 51.35 *Senior Planner *Lead Communications & Engagement Strategist 56 44.50 45.88 47.30 48.76 50.27 51.82 53.42 *Lead Accountant I *Information Technology Business Analyst 59 47.22 48.69 50.19 51.74 53.34 54.99 56.69 *CIP Project Manager *Development Services Lead *IT Project Manager *Engineer II *Information Technology Administrator (Database, GIS, Network, System, and SCADA) 61 49.13 50.65 52.22 53.83 55.50 57.21 58.98 *Lead Accountant II *Human Resources Business Partner *Safety and Risk Program Administrator 63 51.12 52.70 54.33 56.01 57.74 59.53 61.37 *Senior Engineer *Senior Traffic Engineer 65 53.18 54.83 56.52 58.27 60.07 61.93 63.85 *Information Technology Lead (GIS, Operations, Applications, Customer Service)66 54.25 55.92 57.65 59.44 61.28 63.17 65.12 * = FLSA Exempt Position Page 274 of 464 Ordinance – Management Wages 2025 - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, CONCERNING THE SALARIES FOR MANAGEMENT POSITIONS FOR THE CALENDAR YEAR 2025. WHEREAS, after due consideration of the cost-of-living index and wage rates paid by comparable cities, and the history of wage adjustments for the City’s bargaining units, the City Manager has recommended a 3% cost of living adjustment for the calendar year 2025, in the management wage plan; and WHEREAS, the City Council finds that the proposed cost of living adjustment is appropriate in consideration of the Department of Labor’s Consumer Price Index and comparability within the City and with other jurisdictions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The maximum monthly salaries for management positions shall be as set forth in Exhibit A attached hereto, which is incorporated by reference as if fully set forth herein. The schedule of maximum salaries set forth in Exhibit A shall be effective January 5, 2025, (1st full pay period of 2025) and shall remain effective until this Ordinance is amended or superseded by subsequent Ordinance. The actual salary to be received by an employee occupying a management position shall be determined by the City Manager in an amount no greater than the maximum for the position except as authorized herein. Section 2. For payroll purposes only, the monthly salaries as set forth in Exhibit A may be multiplied by twelve (12) and divided by two thousand eighty (2,080) (number of hours in work year) to determine an hourly rate of pay and paychecks may be computed and paid on this hourly basis; however, all positions listed on Exhibit A shall remain salaried positions. Section 3. This Ordinance supersedes any conflicting prior Ordinance or conflicting provision of a prior Ordinance. 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 regulation s; or numbering or referencing of ordinances or their sections and subsections. Page 275 of 464 Ordinance – Management Wages 2025 - 2 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: ___________________________ Page 276 of 464 Position Monthly Maximum Annual Maximum City Manager CONTRACT Deputy City Manager 18,437 221,244.00 DIRECTOR BAND 2 17,558.41 210,700.92 Police Chief Fire Chief Public Works Director Community & Economic Development Director Assistant City Manager DIRECTOR BAND 1 16,453.22 197,438.64 Human Resources Director Finance Director Parks & Recreation Director Information Technology Director MANAGEMENT BAND 3 15,167.78 182,013.36 Deputy Fire Chief Deputy Police Chief Development Services Manager Deputy Community & Economic Development Director Deputy Public Works Director MANAGEMENT BAND 2 14,073.92 168,887.04 Finance Manager MANAGEMENT BAND 1 12,103.53 145,242.36 Utility Billing Manager Facilities Manager Parks Manager Planning Manager Inspection Services Manager Public Works Division Manager Construction Manager Court Administrator Police Records Manager Animal Services Manager Finance Project Manager Recreation Services Manager City Clerk Management Salary Schedule - 2025 3% COLA Effective 1.5.2025 Page 277 of 464 AGENDA REPORT FOR: City Council November 26, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Darcy Buckley, Finance Director Finance SUBJECT: Ordinance No. 4748 - 2023-2024 Operating Budget Supplement (5 minutes) I. REFERENCE(S): Budget Supplement Details Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. 4748, amending the 2023-2024 Biennial Operating Budget by providing supplement thereto; by appropriating revenue received in excess of estimated revenues for the current biennium and by authorize further, and, authority and transfers providing adjustment publication by title only. III. FISCAL IMPACT: Revenue - Increase of $8,811,000 Expense - Increase of $9,583,000 IV. HISTORY AND FACTS BRIEF: RCW 35.33.121 limits annual expenditures to the amounts appropriated for each fund. While budget to actual activity is reviewed during the course of the year, as year-end nears it is prudent to review year to date expenditures and forecast any potential spending related to the current biennium. Per RCW 35A.33.150 the City is required to keep appropriations open for the twenty days after the close of the fiscal year for payment of claims incurred during the year. These budgetary amendments were reviewed and discussed at the November 25th workshop. V. DISCUSSION: Page 278 of 464 Each year, and recently each biennium, a budget is proposed by staff and subsequently adopted by Council. Throughout the budget timeframe it can become necessary to increase expenses. With the goals of transparency and timely communication staff presents requests for amendment during the year for those items of substantial budgetary impact. Additional requests that are part of a year-end amendment are primarily revenue related budgetary changes and miscellaneous items. Miscellaneous items can be defined as those events that have not had a unique need during the year for Council attention and smaller scale expense increase requests. Miscellaneous items are left for yearend consideration as the desire for transparency and communication can be offset by consideration of a busy Council calendar. Below is a summary of budget amendment requests:  FundGeneral for developer private a partnered with The - City participation in the Department of Commerce CHIP grant benefitting the construction of affordable housing.  FundGrant (CDBG) Development Community Block Original - budget expenses were underrepresented as compared to grant award. This amendment aligns both elements of the program.  MLK Center Fund - A project to update light fixtures with LED bulbs was undertaken. This resulted in more expense in this biennium but will positively impact electric utility cost. Expenses assigned to natural gas service are higher than budgeted.  Ambulance Fund - Revenues associated with ambulance transport service are improved from budgeted expectations. As a result, state sales tax is higher than budgeted. Also, elevated from budget is the expense for billings remitted to collection. The process of precollection notification and ultimate remittal of claims to collection agency has been delayed following pandemic. Great care has been taken to communicate and provide opportunity for payment with the assistance of our billing partner.  Animal Control & Services Fund - The cost of veterinarian service is impacting budget. Cost is shared with participating Cities.  School Impact Fee Fund - Collections of fees are in excess of budget. Funds are remitted to Pasco School District.  Lodging Tax Fund - Collections of fees are in excess of budget. Revenue proceeds are subsequently passed on to Visit Tri-Cities.  Equipment Replacement (Government) Fund - Request for purchase to Ordinance Council. by support was defibulators of approved necessary budget amendment did not accompany. The item is added to this ordinance to meet authorization for budget amendment. Page 279 of 464  Health Funds - Health fund revenues are greater than budgeted related to the addition of staffing over the biennium. Expense budget for claims needs to be increased related to claims paid biennium to date. The addition of new staff as well as pandemic related low claim activity in the years of 2020 - 2022 has resulted in "catch up" of health services. Also affecting the expense forecast for this biennium is uncertainty surrounding the impact of events outside City control, including a third-party of bankruptcy and cyberattack claims our on processor administrator. These events have interrupted the presentation of claims.  Old Fire Pension Fund - Cost of living adjustment greater than budgeted.  Cemetery Endowment Fund - Interest earnings of the endowment fund are available to support cemetery care. Details of revenue and expenses impact on all funds are outlined in the attachment. In total, the proposed supplement reflects increases in revenues and expenses of $8.811M and $9.583M, respectively. Net expense increase is $772K and primarily the result of original budget in CDBG represented below expected grant awards. Page 280 of 464 Fund No Fund Name Revenue Amendment Expense Amendment Net Change 100 General Fund 1,350,000 1,250,000 100,000 110 City Streets - - - 120 Arterial Streets - - - 125 I-182 Corridor Impact - - - 130 Street Overlay - - - 140 CDBG and HOME - 515,000 (515,000) 145 MLK Center - 15,000 (15,000) 150 Ambulance 750,000 700,000 50,000 155 ARPA - - - 160 Cemetery 175,000 - 175,000 161 Boulevard Maintenance - - - 165 Athletics - - - 166 Golf Course - - - 168 Animal Control 66,000 100,000 (34,000) 170 Senior Center - - - 180 Multi-Modal Facility - - - 182 School Impact 1,675,000 1,675,000 - 185 Rivershore Trail & Marina - - - 188 Lodging Tax 300,000 300,000 - 189 Litter Abatement - - - 190 Revolving Abatement - - - 191 HAPO - - - 192 Park Development - - - 193 Capital Improvement - - - 194 Economic Development - - - 195 Stadium - - - 196 Hotel Motel - - - 249-250 Local Improvement Districts - - - 367 Construction - - - 410 Utility - - - 510 Equip Oper & Maintenance - - - 511 Utilities Fund Fuel - - - 515 Equipment Replc Govt - 100,000 (100,000) 516 Equipment Replc Utility - - - 521-523 Health Benefit Funds 4,495,000 4,745,000 (250,000) 605 Cemetery Endowment - 175,000 (175,000) 610 Old Fire Pension - 8,000 (8,000) 619 Old Fire OPEB - - - Total 8,811,000 9,583,000 (772,000) Page 281 of 464 Ordinance – 2023-2024 Budget Supplement - 1 ORDINANCE NO. _____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING THE 2023-2024 BIENNIAL BUDGETS OF THE CITY OF PASCO BY PROVIDING SUPPLEMENT THERETO; BY APPROPRIATING REVENUE RECEIVED IN EXCESS OF ESTIMATED REVENUES FOR THE CURRENT YEAR AND BY PROVIDING TRANSFERS AND ADJUSTMENT AUTHORITY. WHEREAS, subsequent to due notice and public hearing thereon, the City Council for the City of Pasco has approved an amendment to Operating and Capital Projects Budgets for the 2023-2024 Biennium. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Pursuant to RCW 35A.34.200, the 2023-2024 Operating and Capital Projects Budgets be and the same is hereby amended to provide for the following adjustments to revenues, transfers in, expenditures, and transfers out by providing authority for any necessary transfer of money within or between funds indicated, and their subsequent impact to end fund balance. Fund Revenue Expense Net Change GENERAL FUND 1,350,000 1,250,000 100,000 COMMUNITY DEVELOPMENT GRANT FUND 0 515,000 (515,000) MLK CENTER OPERATIONS FUND 0 15,000 (15,000) AMBULANCE FUND 750,000 700,000 50,000 CEMETERY FUND 175,000 0 175,000 ANIMAL CONTROL FUND 66,000 100,000 (34,000) SCHOOL IMPACT FEE FUND 1,675,000 1,675,000 0 LODGING TAX FUND 300,000 300,000 0 EQUIPMENT REPLACEMENT FUND – GOVERNMENTAL 0 100,000 (100,000) HEALTH BENEFITS FUNDS 4,495,000 4,745,000 (250,000) CEMETERY ENDOWMENT 0 175,000 (175,000) OLD FIRE PENSION 0 8,000 (8,000) Total $ 8,811,000 $ 9,583,000 $(772,000) Page 282 of 464 Ordinance – 2023-2024 Budget Supplement - 2 Section 2. 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 3. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Section 4. 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, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: ___________________________ Page 283 of 464 AGENDA REPORT FOR: City Council November 22, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Adam Lincoln, City Manager City Manager SUBJECT: Resolution No. 4543 - Declaring the City of Pasco 2025 Legislative Priorities (5 minutes) I. REFERENCE(S): Resolution DRAFT 2025 Legislative Priorities II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4543, declaring the City of Pasco 2025 Legislative Priorities. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: The 2025 Washington State Legislative session will convene on Monday, January 13th. The 2025 session is the first year of the two-year legislative biennium, commonly referred to as the "long" session, the odd year session is scheduled for 105 days. The long session focuses on adopting operating, capital, and transportation budgets for the biennium, and considering hundreds of bills introduced. Gordon Thomas Honeywell Government Relations (GTH-GOV) has been to priorities legislative City’s the contracted in assist to the promoting legislature. In doing so GTH-GOV assists in the development a comprehensive legislative agenda and in furthering that agenda in Olympia by providing on- the-ground presence in Olympia during session, monitoring the legislative action throughout the year, and advancing the City's legislative priorities. The City has benefited by maintaining a proactive posture with the legislature Page 284 of 464 regarding the interests of Pasco. In addition to the City’s Legislative Priorities list, the City also develops a supports/opposes document which provides direction to the City’s legislative consultant and legislators on policy issues that may arise during the legislative session. V. DISCUSSION: Attached is the 2025 Legislative Priorities list, which reflects modifications as recommended by councilmembers, staff and the legislative consultant, Briahna Murray, Partner, GTH-GOV. The proposed amendments to the legislative priorities considered changed circumstances over the past year; additionally, the priorities reflect current circumstances, overall Council policy direction and the likelihood of success. At the November 12, 2024, Council Workshop, Briahna Murray, Partner, GTH- GOV presented an overview of the upcoming session and review the priorities and strategies for advocacy. Staff recommends approval of the resolution declaring the City's legislative priorities for the 2025 Washington State Legislature Session. Page 285 of 464 Resolution – 2025 Legislative Priorities - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, DECLARING THE CITY OF PASCO 2025 LEGISLATIVE PRIORITIES . WHEREAS, the 2025 Legislative Session of the Washington State Legislature commences on January 13, 2025; and WHEREAS, the City of Pasco (City), as a municipal corporation and political subdivision of the State of Washington can be substantially affected by the actions of the Washington State Legislature; and WHEREAS, the City Council has evaluated conditions impacting the City of Pasco and opportunities to improve the services the City provides to its citizenry; and WHEREAS, the City Council desires to identify the legislative priorities for the 2025 Legislative Session so they can be provided to State legislators prior to the commencement of the next legislative session. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the legislative objectives stated herein constitute the priorities of the City of Pasco for the 2025 Legislative Session. MLK COMMUNITY CENTER PHASE 2: The City of Pasco requests the State’s continued partnership to renovate the MLK Community Center in East Pasco. Phase 1 of the renovation focused on Northwest Building of the Community Center is nearing completion. To advance Phase 2, the City requests $900,000 to renovate the Southwest building of the MLK Community Center. Phase 2 will turn the Southwest building into a library and community room, and upgrade restrooms and building access to meet ADA requirements. The renovation of the Southwest building will bring the City closer to completing the entire campus, which serves as an essential space for a diverse neighborhood. ROAD 80 NEIGHBORHOOD PARK: To improve recreational access for the community, Pasco has sought out opportunities to acquire properties for parks, particularly in those areas of the community underserved by parks. Only 3% of the City’s land is used for parks. The City of Pasco requests $500,000 to develop the Road 80 Neighborhood Park. The 3-acre neighborhood park is in a park desert. Developing the park will bring playgrounds, shelter, walking paths, and trees to what is currently a grass field. The additions will transform the space into a park that offers a variety of passive and active recreational opportunities for Pasco residents of all ages. Page 286 of 464 Resolution – 2025 Legislative Priorities - 2 PASCO PROCESS WATER REUSE FACILITY: Pasco owns and operates an innovative Process Water Reuse Facility (PWRF) that utilizes wastewater from food processors to irrigate nearby farm circles. As more food processors choose to locate in Pasco, the City needs additional farm circles to irrigate. The City asks for the State’s partnership in acquiring or leasing nearby circles owned by the Department of Natural Resources and/or the private parties. ROAD 76 OVERPASS: Pasco requests State funding to advance the Road 76 Overpass Project to create a multimodal connection across I-182, which currently divides neighborhoods from commercial areas complicated local travel patterns. The overpass project will reduce travel distances and decrease daily vehicle miles by 6,300 by 2045. The City requests $5 million for the design and right-of-way acquisition, and $30 million for construction. This project is ranked as one of the region’s top transportation projects by the Benton Franklin Council of Governments (BFCOG). US 12/A STREET TRAFFIC STUDY: Pasco requests State funding to perform a comprehensive analysis of State Route 12 from the intersections of A Street to Tank Farm/Sacajawea Park Road to develop practical solutions that will improve safety and economic vitality for the region. Given the recent increase in crashes and the expected rise in traffic volumes, including significant freight traffic, the analysis will aim to identify safety concerns, develop alternatives, perform stakeholder engagement, develop conceptual design and planning estimates. The City requests $3 million to complete the analysis. This project is ranked as one of the region’s top transportation projects by the Benton Franklin Council of Governments (BFCOG). LEWIS STREET UNDERPASS DEMOLITION: Pasco requests State funding for the Lewis Street Underpass Demolition. The State invested in the development of the Lewis Street Overpass, which was completed in 2024. Due to cost overruns associated with the overpass, the City needs $3.3 million to complete demolition of the underpass and to honor its agreement with BNSF. BROADMOOR BLVD/BIKE/PED PATH: Pasco requests State funding to construct a multimodal crossing over I-182 to create a critical connection for active transportation along the corridor which is surrounded by residences, schools and essential commercial businesses. The City requests $8 million for construction. Be It Further Resolved, that the City Manager is hereby directed to inform State legislators and other appropriate parties of the City’s 2025 Legislative Priorities, and Be It Further Resolved, that this resolution shall take effect immediately. Page 287 of 464 Resolution – 2025 Legislative Priorities - 3 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 288 of 464 City of Pasco 2025 State Funding Requests MLK COMMUNITY CENTER PHASE 2: The City of Pasco requests the state’s continued partnership to renovate the MLK Community Center in East Pasco. Phase 1 of the renovation focused on No rthwest Building of the Community Center is nearing completion. To advance Phase 2, the City requests $900,000 to renovate the Southwest building of the MLK Community Center. Phase 2 will turn the Southwest building into a library and community room, and upgrade restrooms and building access to meet ADA requirements. The renovation of the Southwest building will bring the City closer to completing the entire campus, which serves as an essential space for a diverse neighborhood. ROAD 80 NEIGHBORHOOD PARK: To improve recreational access for the community, Pasco has sought out opportunities to acquire properties for parks, particularly in those areas of the community underserved by parks. Only 3% of the city’s land is used for parks. The City of Pasco requests $500,000 to develop the Road 80 Neighborhood Park. The 3-acre neighborhood park is in a park desert. Developing the park will bring playgrounds, shelter, walking paths, and trees to what is currently a grass field. The additions will transform the space into a park that offers a variety of passive and active recreational opportunities for Pasco residents of all ages. PASCO PROCESS WATER REUSE FACILITY: Pasco owns and operates an innovative Process Water Reuse Facility (PWRF) that utilizes wastewater from food processors to irrigate nearby farm circles. As more food processors choose to locate in Pasco, the City needs additional farm circles to irrigate. The City asks for the state’s partnership in acquiring or leasing nearby circles owned by the Department of Natural Resources and/or the private parties. ROAD 76 OVERPASS: Pasco requests state funding to advance the Road 76 Overpass Project to create a multimodal connection across I-182, which currently divides neighborhoods from commercial areas complicated local travel patterns. The overpass project will reduce travel distances and decrease daily vehicle miles by 6,300 by 2045. The City requests $5 million for the design and right-of-way acquisition, and $30 million for construction. This project is ranked as one of the region’s top transportation projects by the Benton Franklin Council of Governments (BFCOG). US 12/A STREET TRAFFIC STUDY: Pasco requests state funding to perform a comprehensive analysis of State Route 12 from the intersections of A Street to Tank Farm/Sacajawea Park Road to develop practical solutions that will improve safety and economic vitality for the region. Given the recent increase in crashes and the expected rise in traffic volumes, including significant freight traffic, the analysis will aim to identify safety concerns, develop alternatives, perform stakeholder engagement, develop conceptual design and planning estimates. The City requests $3 million to complete the analysis. This project is ranked as one of the region’s top transportation projects by the Benton Franklin Council of Governments (BFCOG). LEWIS STREET UNDERPASS DEMOLITION: Pasco requests state funding for the Lewis Street Underpass Demolition. The state invested in the development of the Lewis Street Overpass, which was completed in 2024. Due to cost overruns associated with the overpass, the City needs $3.3 million to complete demolition of the underpass and to honor its agreement with BNSF. BROADMOOR BLVD/BIKE/PED PATH: Pasco requests state funding to construct a multimodal crossing over I-182 to create a critical connection for active transportation along the corridor which is surrounded by residences, schools and essential commercial businesses. The City requests $8 million for construction. . Page 289 of 464 QUALITY OF LIFE Local Community Decision-Making Pasco opposes any proposals that restrict, mandate, or otherwise interfere with the city’s ability to make local decisions that are informed by public processes and community engagement. Housing Affordability Pasco supports efforts to bring more affordable housing to the Pasco community including reduced barriers to constructing housing and grant funding through programs like the Housing Trust Fund. Homelessness Pasco supports additional tools to assist cities in addressing homelessness, including resources for the city’s resource navigator program. Additionally, the City asks that the Legislature continue to empower cities to address homeless encampments in a compassionate but effective manner. COMMUNITY SAFETY Crime Reduction and Prevention Pasco supports policies to reduce and prevent crime in the community, including efforts to reduce and prevent gang violence . Law Enforcement Recruitment and Retention Pasco supports increased funding for public safety efforts, including funding and policies to recruit, hire, train, and retain law enforcement officers, including but not limited to ongoing support for regional training academies. Juvenile Interrogations Pasco supports legislation clarifying that officers can interrogate juveniles. Traffic Safety Pasco supports legislation and grant funding to improve traffic safety through the implementation of traffic calming measures. Fentanyl & Opioid Epidemic Pasco supports prioritizing solutions to the fentanyl and opioid epidemic , including funding to first responders for Narcan. Behavioral Health (Mental Health & Substance Use) Pasco supports investments in the state’s behavioral health system, including crisis response, detox facilities, outpatient case management services, and more. Public Defense The City of Pasco is responsible for providing public defense services to indigent defendants of misdemeanor charges. The City supports state policies to assist in recruiting public defenders and allocating the necessary funding needed to meet public defense caseload standards under consideration by the Washington State Supreme Court. FINANCIAL SUSTAINABILITY Grant Proposals Pasco supports ongoing and increased funding to grant programs that benefit city projects, including but not limited to the Public Works Assistance Account, the Washington Wildlife and Recreation Program, Complete Streets, Safe Routes to Schools, and more. State-Shared Revenues Pasco supports preserving and enhancing state-shared revenue streams. Unfunded Mandates Pasco opposes any unfunded mandates that increase costs to cities without additional state funding provided. Public Records Act Pasco supports any proposals that reduce the impact of abusive public records requests and litigation. Election of Judges Pasco opposes legislation mandating that part-time municipal court judges be elected rather than appointed. Insurance Costs Recent legislation and subsequent court decisions have increased the legal liability of public entities, resulting in higher rates for liability coverage. The City’s liability rates increased by 27% from 2022 to 2023 and by another 17% from 2023 to 2024. The City supports efforts to protect against liability expansion and opposes new policies that would drive additional claims and increase litigation costs. PFML/FMLA Coordination Pasco supports efforts to align the administration of the federal Family and Medical Leave Act (FMLA) and state Paid Family Medical Leave (PFML) The City of Pasco Policy Issues Page 290 of 464 programs to run concurrently. Harmonizing these programs will help maintain their benefits without imposing excessive costs. COMMUNITY TRANSPORTATION NETWORK Tri-Cities Mobility Pasco supports efforts to explore a third crossing over the Columbia River to improve regional mobility throughout the Tri-Cities. Foster Wells Interchange Pasco supports Franklin County’s request for the Foster Wells Interchange project, which aims to improve traffic flow and access to the growing area around the Foster Wells Road corridor. ECONOMIC VITALITY Water Rights Pasco is a growing community with a finite water supply. The City supports legislative efforts to allow the city to increase water rights to meet the needs of the growing community. Additionally, Pasco recognizes that water conservation must be part of the solution in making the most with available water rights. Economic Development Tools Pasco supports economic development tools to spur development downtown and in key commercial corridors, including funding for an industrial symbiosis project at the Port of Pasco and retaining and enhancing tax increment financing. DNR Property within the UGA Pasco is opposed to DNR buying land within the City’s UGA and asks that DNR divest itself of the undeveloped agricultural land it currently owns within the UGA and keeping the associated water rights with said land, not moving them outside city limits. Annexation Pasco supports incentives that encourage annexation, including utilizing utility extensions, and mechanisms that facilitate the annexation of unincorporated islands. Growth Management Pasco opposes any proposals that create new planning obligations within the Growth Management Act that are not coupled with adequate funding . The City supports AWC legislative agenda items that serve the best interests of Pasco. Page 291 of 464 Page 292 of 464 AGENDA REPORT FOR: City Council November 26, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Jacob Gonzalez, Land Use & Planning Advisor Community & Economic Development SUBJECT: Amending PMC Title 25 Zoning Related to Overnight Truck Habitation (10 minutes) I. REFERENCE(S): Draft Ordinance Amending PMC Title 25 to allow for Overnight Truck Habitation (Planning Commission Recommendation) Applicant Project Scope and Draft Ordinance Commercial & Industrial Truck Routes Availability Map Residential and MU Truck Routes Availability Map Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The City of Pasco received a request from B4 Development and Consulting (B4) to initiate a text amendment to Title 25 Zoning of the Pasco Municipal Code (PMC), to accommodate overnight truck habitation. This proposed use is distinct from other uses in the PMC, such as off-street parking lots and truck stops. This request entails establishing designated areas for drivers to sleep or reside in their trucks overnight as a site’s primary use, a matter not currently addressed by the existing PMC. The movement of freight has rapidly increased over the past several years, but facilities to support freight operators such as truck drivers, has not kept pace. The Planning Commission acknowledged the importance of amending the Page 293 of 464 PMC to support freight operators in such a way that the local economy, as well as the residents of Pasco are supported. The draft Ordinance (Exhibit A) was crafted by the Planning Commission over several meetings (February 15, April 18, July 18, and August 15, 2024) and two public hearings (May 16, and September 9, 2024) this past year. The draft Ordinance was recommended to the City Council by the Planning Commission at the September 9, 2024 public hearing. Staff presented the draft ordinance as well as the applicants desired ordinance to Council on October 28. Council asked staff to provide additional perspectives and options for consideration. V. DISCUSSION: Currently, overnight truck habitation is not explicitly defined in the Pasco Municipal Code (PMC). However, PMC Sections 25.120.020 and 25.125.020 state that "all uses not otherwise prohibited by law" are allowed in the I-2 (Heavy Industrial) and I-3 (Industrial Park) zoning districts. As a result, overnight truck habitation is currently permitted in these districts as an implied use. The proposed amendment aims to formally designate overnight truck habitation as a recognized use in the PMC. This includes identifying specific zoning districts where the use would be permitted, either outright or subject to a special permit, and establishing development standards to regulate aspects such as:  Site design and layout  Proximity to incompatible zones or uses (ex: housing, parks, schools)  Environmental impacts (ex: noise, light, traffic) Discussion Points - October 28 City Council Meeting Several elements of the proposal and the recommended code amendment were raised at the October 28, City Council meeting. These include: 1. Location a. Council requested staff provide maps that show allowable areas based on: i. Distance Buffers of 250 feet and 500 feet, in addition to the recommended 1,000 foot buffer from residential zones. b. Include C-3 zoning as an allowed zoning district c. Highlight truck routes and allowed areas. i. Staff has included truck routes classified by the Washington State Department of Transportation Freight and Good Transportation System, and those specified in Pasco Municipal Code 10.80.040. Page 294 of 464 2. Infrastructure Development Standards a. Consider requirements for allowing graveled overnight truck parking lots, rather than the recommended pavement. Pasco Municipal Code. i. Pasco Municipal Code 25.185.090 defines standards for off-street parking all that lots and parking requires all and parking parking for designated customer/client areas located between the right-of-way and any buildings be hard surfaced with asphalt or Portland cement concrete. It does provide an exemption for areas out of public view that are utilized for employee parking and service vehicle parking and storage that located behind the front of a building. b. Reduced requirements for trash receptacles. 3. Operations a. Assess 24/7 on-site management recommendation. b. Limit parking duration to 48 hours, with flexibility for weekends, holidays, and inclement weather. c. Consider aligning operation requirements with existing standards for RV parks. i. Pasco Municipal Code Title 19 outlines the requirements for RV Parks/Residential Parks, and requires hard- surfaced roads, minimum turning radius (100 feet), and sewage collection systems and discharging into the public sewage system. Standards for RV Parks also require a minimum 20 foot landscaping buffer along all lot lines not bordering a public street, which may be reduced to 10 feet if a solid wall or fence is provided. ii. Minimum recreational area for RV Parks specify at least 200 square feet per home are required. iii. RV Parks require office building and manager with several responsibilities, including: 1. register a of Management: Occupant Maintain occupants, notify them of regulations and responsibilities, and supervise placement, connections, and removal of homes. 2. Park Maintenance and Safety: Keep the park clean, orderly, fire hazards; ensure free and of extinguishers are available; and prevent loose pets or combustible materials. 3. Compliance Enforcement: Enforce city regulations, report violations, and prohibit rental or placement of homes or that are dilapidated, overcrowded, obstruct walkways/roadways. 4. Definition a. Clearly define the types of vehicles allowed for overnight Page 295 of 464 habitation. Washington State Department of Licensing (DOL) guidelines specify the following vehicles requiring a Commercial Driver’s License (CDL): i. Vehicles with a Gross Vehicle Weight Rating (GVWR) of 26,001 pounds or more. ii. Combination vehicles with a Gross Combination Weight Rating (GCWR) of 26,001 pounds or more, where the towed vehicle exceeds 10,000 pounds. iii. Vehicles designed to transport 16 or more passengers (including the driver). iv. All school buses, regardless of size. v. Vehicles requiring hazardous material placards or carrying select agents or toxins (42 CFR part 73). b. The proposed ordinance includes a definition "25.163.020 Definition. “Overnight Truck Parking and Habitation Facility” means an off-street site where commercial vehicle drivers can park their vehicles, with or without an attached trailer, where said driver can access on-site amenities and sleep in their vehicle." c. "as trucks 46.04.310 defines RCW motor vehicle motor any designed or used for the transportation of commodities, merchandise, produce, freight, or animals." Proposal Considerations: The proposed amendment seeks to balance support for freight operations with the reduce compatibility conflicts with adjacent properties. Key considerations include minimizing conflicts with residential areas while providing adequate space for this use, determining which existing infrastructure standards should apply or be modified for overnight truck parking facilities, and establishing operational requirements to ensure neighborhood safety and appropriate use of the facilities. Following the meeting, staff will prepare an updated ordinance for City Council review and determination. Page 296 of 464 Ordinance – Amending PMC Title 25 - Zoning - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING PASCO MUNICIPAL CODE TITLE 25 “ZONING” TO ALLOW FOR OVERNIGHT TRUCK PARKING AND HABITATION. WHEREAS, freight truck parking shortages are a national concern affecting the safety of commercial motor vehicle drivers and other roadway users as well as the efficiency of U.S. supply chains; and WHEREAS, the need for safe freight truck parking has been identified by the United Stated Department of Transportation, the Federal Highway Administration, and Washington State Department of Transportation especially during the hours of 7PM to 5AM; and WHEREAS, overnight truck habitation (residing in a parked truck overnight) is not explicitly defined within the Pasco Municipal Code; and WHEREAS, this code amendment is intended to define overnight truck parking and habitation as a use within the Pasco Municipal Code. This involves specifying the zoning districts where this use would be permitted and establishing regulations regarding said use. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Section 25.15.170 of the Pasco Municipal Code (PMC) entitled “O definitions” is hereby amended and shall read as follows: 25.15.170 O DEFINITIONS. “Open space” means an unoccupied space open to the sky on the same lot with a building. Outdoor Storage. See definition under PMC 25.180.030. Overnight Truck Parking and Habitation. See definition under PMC 25.163.020. Section 3. Title 25 of the PMC entitled “Zoning” is hereby amended and shall read as follows: TITLE 25 ZONING Chapters: 25.05 Title – Purpose 25.10 Interpretation and Enforcement Page 297 of 464 Ordinance – Amending PMC Title 25 - Zoning - 2 25.15 Definitions 25.20 Zoning Districts Established – Zoning Map 25.22 Zone District Standards 25.25 R-T Residential Transition District 25.30 R-S-20 Suburban District 25.35 R-S-12 Suburban District 25.40 R-S-1 Suburban District 25.45 R-1 Low Density Residential District 25.50 R-1-A Low Density Residential Alternate District 25.55 R-1-A2 Low Density Residential Alternate District 25.60 R-2 Medium Density Residential District 25.65 R-3 Medium Density Residential District 25.70 R-4 High Density Residential District 25.75 RP Residential Park District 25.80 O Office District 25.85 C-1 Retail Business District 25.90 C-2 Central Business District 25.95 Downtown Pasco Overlay District 25.97 Broadmoor Overlay District 25.100 C-3 General Business District 25.105 C-R Regional Commercial District 25.110 BP Business Park District 25.115 I-1 Light Industrial District 25.120 I-2 Medium Industrial District 25.125 I-3 Heavy Industrial District 25.127 Mixed-Use District 25.130 I-182 Corridor Overlay District 25.135 Commercial Corridors Design Standards 25.140 Planned Unit Development 25.145 Planned Density Development 25.150 Home Occupations 25.155 Density Increase 25.160 Recreational Vehicle Parks 25.161 Accessory Dwelling Units 25.162 Single Room Occupancy Housing 25.163 Overnight Truck Parking and Habitation. 25.165 Use Regulations 25.170 Nonconforming Uses 25.175 Site and Building Design Standards 25.180 Landscaping and Screening 25.185 Off-Street Parking 25.190 Airport Overlay District 25.195 Land Use Hearings by Examiner 25.197 Mineral Lands 25.200 Special Permits 25.205 Homeless Temporary Shelters Page 298 of 464 Ordinance – Amending PMC Title 25 - Zoning - 3 25.210 Amendments and Rezoning 25.215 Comprehensive Plan 25.220 Annexation Procedure Section 4. That a new Chapter of the Pasco Municipal Code, 25.163, entitled “Overnight Truck Parking and Habitation” is hereby created and shall read as follows: CHAPTER 25.163 OVERNIGHT TRUCK PARKING AND HABITATION Sections: 25.163.010 Purpose. 25.163.020 Definition. 25.163.030 Permitted zones. 25.163.040 General requirements and development standards. 25.163.010 Purpose. (1)The purpose of this chapter is to improve the state of truck parking in Pasco by ensuring that Overnight Truck Parking and Habitation facilities are located, developed and occupied in accordance with standards and regulations which will protect the health, safety, general welfare and convenience of the users of such facilities and the residents of the City of Pasco. 25.163.020 Definition. “Overnight Truck Parking and Habitation Facility” means an off-street site where commercial vehicle drivers can park their vehicles, with or without an attached trailer, where said driver can access on-site amenities and sleep in their vehicle. 25.163.030 Permitted zones. An Overnight Truck Parking and Habitation facility is prohibited in all zoning districts as a primary or accessory use, other than the following zoning districts where it may be approved as a conditional use via special permit per Chapter 25.200 PMC: I-1 (Light Industrial District). I-2 (Medium Industrial District). I-3 (Heavy Industrial District). 25.163.040 Development standards. (1)Prohibited within 1,000 feet of Residential or Mixed-Use zoning districts, existing residential uses (Including Recreational Vehicle Parks that allow long-term stays. Excluding caretaker’s residences per PMC 25.165.060), parks, and schools. Page 299 of 464 Ordinance – Amending PMC Title 25 - Zoning - 4 (2) Site access to and from US 12, US 395, SR 397, I-182 shall be via truck routes as identified in PMC 10.80.040. (3)Site access, layout and interior circulation must accommodate the safe and efficient movement of a minimum 67-foot wheel base tractor-trailer. (4)Parking stalls and drive isles shall be paved. Parking stalls for tractor trailers must be designed to accommodate a tractor trailer with minimum 74-foot length and appropriately striped. (5) Maximum facility size: 15 acres, including stormwater management areas and other appurtenances. (6) Maximum stay shall not exceed 72 hours in a 96-hour period. (7)Security. (a)Site shall have 24-hour on-site management. (b)Site shall have an access gate(s) that automatically close after each vehicle and pedestrian. Pedestrians must not be able to access site under, over or around closed gates. Vehicle gates shall be set back a minimum 80 feet from travel lane of public road used to access the site and be equipped with security camera(s). (c)Site shall have a perimeter fence. When Overnight Truck Parking & Habitation is an accessory use, perimeter fencing shall encompass area designated for Overnight Truck Parking & Habitation. (8) Lighting. Area enclosed by perimeter fencing shall be lit to provide adequate vision, comfort and safety of site users. Lighting shall be uniform within the permitter fencing, with no dark patches or pockets. All lighting fixtures serving the site shall be full cutoff fixtures as defined by the Illuminating Engineering Society of North America (IESNA). Minimum Footcandles on Pavement 0.5 foot-candles (fc) Maximum Footcandles on Pavement 7.5 fc Uniformity Ratio, Maximum:Minimum 3:1 Minimum Footcandles at five (5) feet Above Pavement 0.25 fc Maximum light trespass on adjacent properties .1 fc Page 300 of 464 Ordinance – Amending PMC Title 25 - Zoning - 5 (9) Permanent Restrooms. Temperature controlled single-occupancy permanent restrooms, with a sink and toilet, shall be provided on-site per chart below. Restrooms shall be accessible whenever parking facility is in operation and connected to the City’s sewer utility. Truck Parking Stalls Minimum Number of Bathroom Stalls 1 to 15 1 16 to 35 2 36 to 55 3 56-80 4 81-110 5 111 to 150 6 Over 150 +1 per 50 (10)Solid Waste Disposal. Facilities shall be maintained free of litter and garbage. (a) Site shall have a minimum of one (1) commercial dumpster. (b)One (1) outdoor commercial trashcan shall be provided for every five (5) truck parking stalls. (11) On-site Amenities. (a)Water fountains or bottle fillers for potable water are required per table below: Truck Parking Stalls Minimum Number of Water Fountains or Bottle Fillers 1 to 50 1 51 to 100 2 101+ 3 (b)100 square feet of pet relief area shall be provided for every 30 truck parking stalls. Area shall be a minimum of 10 feet wide, contain a trash receptacle, and provide pet waste bags. (c)One (1) additional amenity shall be provided per 30 truck parking stalls. Each of the following is considered one amenity: a secure shower, a clothes washer and dryer, outdoor seating for four people, vending machine(s) for both beverages and food. Additional features can be considered amenities at the discretion of the Community and Economic Development Director. (12)Landscaping and screening. In apparent cases of conflict between provisions, the most restrictive shall prevail. (a)Site must comply with Chapter 25.180 PMC. Truck parking stalls are considered Page 301 of 464 Ordinance – Amending PMC Title 25 - Zoning - 6 parking lots for purposes of landscaping and screening. (b)All areas of the facility, including perimeter setback areas not utilized for drive isles, parking stalls, walkways, buildings, and amenity areas, shall be landscaped. (c)All landscaping and screening shall be maintained. (13) Signage. (a)A map of City truck routes or a QR code for such map posted online, the City of Pasco Code Enforcement phone number, and the Benton Franklin Health District phone number shall be posted at the exit gate of the site and one additional location. (b)The phone number to the on-site manager that is available 24 hours a day to handle site access and site maintenance issues shall be posted at the site entry gate and on the restroom building. (14) Accessory uses. Management and maintenance buildings, guard houses, recreational facilities, restrooms, showers, laundry facilities, and other uses and structures customarily incidental to the operation of an Overnight Truck Parking and Habitation facility are deemed to be permitted accessory uses. Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this ordinance. Section 6. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Section 7. Effective Date. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. Page 302 of 464 Ordinance – Amending PMC Title 25 - Zoning - 7 PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 202_. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: _____________________________ Page 303 of 464 COLUMBIA RIVER 395 395 395 12 12 182 ² Overnight Truck Parking & Habitation Legend Highways & Approximate Local Truck Routes Roads Schools Parks Pasco City Limits Zoning Districts C-3, General Business District I-1, Light Industrial District I-2, Medium Industrial District I-3, Heavy Industrial District Pa g e 3 0 4 o f 4 6 4 COLUMBIA RIVER 395 395 395 12 12 182 ² Overnight Truck Parking & Habitation Legend Highways & Approximate Local Truck Routes Roads Schools Parks Pasco City Limits Residential & Mixed Use Districts 250ft Buffer Zone 500ft Buffer Zone 1000ft Buffer Zone Pa g e 3 0 5 o f 4 6 4 TIGER PARKING NARRATIVE PARCEL # 113730062 & 113730071 We would like to introduce this exciting new concept of a high-end truck parking idea of a company called Tiger Parking. (www.trucklots.com) This company is interested in our two parcels located off Lewis Street in East Pasco. We are confident this is the perfect location for this type of business model, especially considering the growing operations of Amazon in the area. Tiger Parking aims to provide a safe and convenient parking solution for truckers, ensuring they have easy access to their cargo and can rest comfortably during their journeys. We hope this information addresses any questions or concerns you may have. FIRST – Please watch this video from Tiger Parking showcasing what is possible with this company. WHY TRUCK PARKING? The truck driving profession is a challenging one, especially when it comes to finding a safe and reliable parking spot. Parking is the leading cause of job-related stress for drivers. Tiger Parking is determined to solve this problem by offering secure and convenient truck parking lots for long- haul drivers. Tiger Parking makes life easier for over-the-road drivers by providing a secure, well- lit, and gated facility where they can reserve a guaranteed parking spot. The goal is to offer a restful and safe parking environment at a fair price. By giving drivers the peace of mind that comes with a guaranteed parking space, Tiger Parking empowers them to operate their businesses more efficiently and stop wasting time on the search for a safe place to park. Let’s start with a couple of videos from YouTube as a way of introduction for phase one only. This is a company managed by Tiger Parking but is only the beginning of where the company is headed. This is as close to the look and feel of phase one as could be imagined. https://www.youtube.com/watch?v=ekckf9xhjCU & https://www.youtube.com/watch?v=fgj9wCpOjBo One of the companies with a similar concept as phase one is www.bigrigparkingspaces.com 50 9 -84 5 -71 9 9 st e v e @b 4 l a n d . c o m S T E P H E N B A U M A N Page 306 of 464 STAFFING: Tiger Parking will offer customers a safe and secure parking experience. This site will be staffed around the clock, 24/7, and will be stationed in a portable work office in phase one. This office will be equipped to ensure that every aspect of your parking experience is safe and secure. Imagine an office that looks like the one below. AMENITIES / USES: Tiger Parking is excited to offer customers an exceptional overnight parking experience in a fully fenced, well-lit environment. Parking facilities will have 24/7 surveillance and on-site security personnel. During the first phase of operation, Tiger Parking will provide portable shower and restroom facilities, which will be available for use by customers and undergo regular inspection, maintenance, and cleaning by on-site staff. In these facilities, customers will have access to private shower stalls, sinks, and toilets. Our showers will be equipped with hot water and clean towels for customer use. The restroom facilities will be equipped with modern fixtures and will be maintained to the highest standards of cleanliness. On-site staff will be available to assist customers with any questions or concerns they may have during their stay. Tiger Parking is committed to providing a safe, comfortable, and convenient parking experience for all customers. Examples of what portable shower/restroom facilities may look like include… Page 307 of 464 Page 308 of 464 LENGTH OF STAY: The facility has been designed to target drivers that need overnight parking to achieve the appropriate amount of rest as required by the DOT before continuing their journey. In addition, we expect that other trucking fleets will use this valuable opportunity for the same requirements. The average length of stay for individuals operating their trucks will be limited to 24 hours and no long- term stays inside your big rig will be permitted. CLIENT BASE: This facility primarily will cater to trucking companies and owner-operator drivers. Other individuals and businesses are also welcome to avail themselves of its amenities following the same expected guidelines. HOURS OF OPERATION: To meet the needs of Tiger Parking Cliental, the facility will have uninterrupted access 24 hours per day 7 days a week. Page 309 of 464 PROPOSED IMPROVEMENTS: As per the approved plans, we will submit if we move forward, the lighting for the project will be fully built out in phase one. This will ensure that the entire area is well-lit and safe for all visitors. Additionally, the landscaping will be completed following the approved drawings we submit, ensuring that the greenery and foliage are in line with the desired aesthetic. Regarding paving, it is important to note that in phase one, a gravel lot with markings like those of Parcel # 113282047 in East Pasco will be completed. This will provide adequate parking space for visitors and ensure that the lot is functional and efficient. It is important to note that sewer will not be brought to the site in phase one. Sewage will be dealt with through regular cleaning and maintenance of the facilities at the owner's expense. Parcel #113282047 in Pasco is already a truck parking facility the difference is Tiger Parking will offer overnight stays with their lots and 24/7 onsite staff. Page 310 of 464 NUMBER OF STALLS: During the first phase Tiger Parking is planning to provide a total of 57 truck stalls and 3 hotshot stalls. These stalls will be designed to accommodate the specific needs of truck drivers, including adequate space for maneuvering and parking. In the second phase, which is a full build-out, Tiger Parking aims to offer a total of 139 truck stalls and 11 hotshot stalls. Tiger Parking understands the importance of providing a safe and secure environment for truck drivers to park their vehicles and rest, which is why they are taking all the necessary measures to ensure the stalls are built to the highest standards possible. **FUTURE PLANS** The company has an ambitious plan to establish 300 high-end truck parking areas across the country. In the future (phase 2), they intend to enhance the facilities by adding guest service buildings that would feature a plethora of possible amenities including laundry services, showers, break rooms, fitness centers, cafes, dog parks, health centers, and/or picnic areas. The company plans to recruit additional employees to provide top-notch services to truckers and other travelers. Page 311 of 464 ADDITIONAL PICTURES AS EXAMPLES: Page 312 of 464 Page 313 of 464 Page 314 of 464 Page 315 of 464 Submitted 2024.10.18 – page 1 Section 1. Section 25.15.170 of the Pasco Municipal Code (PMC) entitled “O definitions” is hereby amended and shall read as follows: 25.15.170 O DEFINITIONS. “Open space” means an unoccupied space open to the sky on the same lot with a building. Outdoor Storage. See definition under PMC 25.180.030. Overnight Truck Parking and Habitation. See definition under PMC 25.163.020. Section 3. Title 25 of the PMC entitled “Zoning” is hereby amended and shall read as follows: TITLE 25 ZONING Chapters: 25.05 Title – Purpose 25.10 Interpretation and Enforcement 25.15 Definitions 25.20 Zoning Districts Established – Zoning Map 25.22 Zone District Standards 25.25 R-T Residential Transition District 25.30 R-S-20 Suburban District 25.35 R-S-12 Suburban District 25.40 R-S-1 Suburban District 25.45 R-1 Low Density Residential District 25.50 R-1-A Low Density Residential Alternate District 25.55 R-1-A2 Low Density Residential Alternate District 25.60 R-2 Medium Density Residential District 25.65 R-3 Medium Density Residential District 25.70 R-4 High Density Residential District 25.75 RP Residential Park District 25.80 O Office District 25.85 C-1 Retail Business District 25.90 C-2 Central Business District 25.95 Downtown Pasco Overlay District 25.97 Broadmoor Overlay District 25.100 C-3 General Business District 25.105 C-R Regional Commercial District 25.110 BP Business Park District 25.115 I-1 Light Industrial District 25.120 I-2 Medium Industrial District 25.125 I-3 Heavy Industrial District Page 316 of 464 Submitted 2024.10.18 – page 2 25.127 Mixed-Use District 25.130 I-182 Corridor Overlay District 25.135 Commercial Corridors Design Standards 25.140 Planned Unit Development 25.145 Planned Density Development 25.150 Home Occupations 25.155 Density Increase 25.160 Recreational Vehicle Parks 25.161 Accessory Dwelling Units 25.162 Single Room Occupancy Housing 25.163 Overnight Truck Parking and Habitation. 25.165 Use Regulations 25.170 Nonconforming Uses 25.175 Site and Building Design Standards 25.180 Landscaping and Screening 25.185 Off-Street Parking 25.190 Airport Overlay District 25.195 Land Use Hearings by Examiner 25.197 Mineral Lands 25.200 Special Permits 25.205 Homeless Temporary Shelters 25.210 Amendments and Rezoning 25.215 Comprehensive Plan 25.220 Annexation Procedure Section 4. That a new Chapter of the Pasco Municipal Code, 25.163, entitled “Overnight Truck Parking and Habitation” is hereby created and shall read as follows: CHAPTER 25.163 OVERNIGHT TRUCK PARKING AND HABITATION Sections: 25.163.010 Purpose. 25.163.020 Definition. 25.163.030 Permitted zones. 25.163.040 General requirements and development standards. 25.163.010 Purpose. (1)The purpose of this chapter is to improve the state of truck parking in Pasco by ensuring that Overnight Truck Parking and Habitation facilities are located, developed and occupied in accordance with standards and regulations which will protect the health, safety, general welfare and convenience of the users of such facilities and the residents of the City of Pasco. 25.163.020 Definition. Page 317 of 464 Submitted 2024.10.18 – page 3 “Overnight Truck Parking and Habitation Facility” means an off-street site where commercial vehicle drivers can park their vehicles, with or without an attached trailer, where said driver can access on-site amenities and sleep in their vehicle. 25.163.030 Permitted zones. An Overnight Truck Parking and Habitation facility is prohibited in all zoning districts as a primary or accessory use, other than the following zoning districts where it may be approved as a conditional use via special permit per Chapter 25.200 PMC: C-3 (General Business District) I-1 (Light Industrial District). I-2 (Medium Industrial District). I-3 (Heavy Industrial District). An Overnight Truck Parking and Habitation facility will not be allowed to be located within the I-182 Corridor Overlay District. 25.163.040 Development standards. (1) Prohibited within 50 feet of Residential, C-1, or Mixed-Use zoning districts, including Recreational Vehicle Parks that allow long-term stays, unless a buffer zone is established. This buffer zone is required to ensure a smooth transition between zoning districts and minimize conflicts. (2) Site access to and from US 12, US 395, SR 397, I-182 shall be via truck routes as identified in PMC 10.80.040. (3) Site access, layout and interior circulation must accommodate the safe and efficient movement of a minimum 67-foot wheelbase tractor-trailer. (4) Parking stalls and drive isles shall have a hard surface. Parking stalls for tractor trailers must be designed to accommodate a tractor trailer with minimum 74-foot length and appropriately striped. (5) Maximum facility size: 20 acres, including stormwater management areas and other appurtenances. (6) Maximum stay shall not exceed 72 hours in a 96-hour period. (7) Security (a) Site shall have 24-hour management accessible. (b) Site shall have an access gate(s) that automatically close. Vehicle gates shall be Page 318 of 464 Submitted 2024.10.18 – page 4 set back a minimum 80 feet from travel lane of public road used to access the site and be equipped with security camera(s). (c)Site shall have a perimeter fence. When Overnight Truck Parking & Habitation is an accessory use, perimeter fencing shall encompass area designated for Overnight Truck Parking & Habitation. (8) Lighting. Area enclosed by perimeter fencing shall be lit to provide adequate vision, comfort and safety of site users. Lighting shall be uniform within the permitter fencing, with no dark patches or pockets. All lighting fixtures serving the site shall be full cutoff fixtures as defined by the Illuminating Engineering Society of North America (IESNA). (9) Permanent Restrooms. Temperature controlled single-occupancy permanent restrooms, with a sink and toilet, shall be provided on-site per chart below. Restrooms shall be accessible whenever parking facility is in operation and connected to the City’s sewer utility. Truck Parking Stalls Minimum Number of Bathroom Stalls 1 to 15 1 16 to 35 2 36 to 55 3 56-80 4 81-110 5 111 to 150 6 Over 150 +1 per 50 (10)Solid Waste Disposal. Facilities shall be maintained free of litter and garbage. (a)Site shall have a minimum of one (1) commercial dumpster. (11) On-site Amenities. Minimum Footcandles on Pavement 0.5 foot-candles (fc) Maximum Footcandles on Pavement 7.5 fc Uniformity Ratio, Maximum: Minimum 3:1 Minimum Footcandles at five (5) feet Above Pavement 0.25 fc Maximum light trespass on adjacent properties .1 fc Page 319 of 464 Submitted 2024.10.18 – page 5 (a)Water fountains or bottle fillers for potable water are required per table below: Truck Parking Stalls Minimum Number of Water Fountains or Bottle Fillers 1 to 50 1 51 to 100 2 101+ 3 (b)100 square feet of pet relief area shall be provided for every 30 truck parking stalls. Area shall be a minimum of 10 feet wide, contain a trash receptacle, and provide pet waste bags. (c)One (1) additional amenity shall be provided per 30 truck parking stalls. Each of the following is considered one amenity: a secure shower, a clothes washer and dryer, outdoor seating for four people, vending machine(s) for both beverages and food. Additional features can be considered amenities at the discretion of the Community and Economic Development Director. (12)Landscaping and screening. In apparent cases of conflict between provisions, the most restrictive shall prevail. (a)Site must comply with Chapter 25.180 PMC. Truck parking stalls are considered parking lots for purposes of landscaping and screening. (b)All areas of the facility, including perimeter setback areas not utilized for drive isles, parking stalls, walkways, buildings, and amenity areas, shall be landscaped. (c)All landscaping and screening shall be maintained. (13)Signage. (a)A map of City truck routes or a QR code for such map posted online, the City of Pasco Code Enforcement phone number, and the Benton Franklin Health District phone number shall be posted at the exit gate of the site and one additional location. (b)The phone number to the manager that is available 24 hours a day to handle site access and site maintenance issues shall be posted at the site entry gate and on the restroom building. (14) Accessory uses. Management and maintenance buildings, guard houses, recreational facilities, restrooms, showers, laundry facilities, and other uses and structures customarily incidental to the operation of an Overnight Truck Parking and Habitation facility are deemed to be permitted accessory uses. Page 320 of 464 CA2024-001 Overnight Truck Parking & Habitation December 2, 2024 City Council Pa g e 3 2 1 o f 4 6 4 Purpose – Overnight Truck Parking & Habitation 2 •Designate locations where overnight commercial freight and truck operators can park their vehicles safely overnight. •2022 Washington Truck Parking Assessment priority need. Pa g e 3 2 2 o f 4 6 4 Purpose - Overnight Truck Parking & Habitation 3 Truck parking shortages are a national concern affecting the safety of commercial motor vehicle drivers and other roadway users as well as the efficiency of supply chain. •Safety Risks & Driver Fatigue •Drivers must adhere to Hours-of-Service regulations, but without enough parking, drivers may be forced to drive tired, endangering themselves & others.  •Parking in unsafe or unauthorized areas increases risks of theft, vandalism, and crime. •Lack of parking may increase driver stress, fatigue, and accident risks. •Lost Productivity •Searching for parking reduces productivity as HOS time is not spent moving freight.  Pa g e 3 2 3 o f 4 6 4 Purpose - Overnight Truck Parking & Habitation 4 •Economic Impact •Inability to find parking increases freight operating costs and operating costs of businesses that rely on freight and causes supply chain disruptions.  •In Franklin County, per the Washington State Employment Securities Department (2020), approximately 4% of all jobs are in the transportation and warehousing sector •Related jobs associated with agriculture, manufacturing, wholesale trade and construction, which as a total, represent nearly 28% of employment Pa g e 3 2 4 o f 4 6 4 Status – Overnight Truck Parking & Habitation 5 •Overnight truck parking habitation not defined in PMC •Permitted as an implied use under: •I-2 (Heavy Industrial) •I-3 (Industrial Park) •Proposed Amendment (PC Recommendation) •Formally designate overnight truck habitation as a recognized use. •Identify zoning districts and permit process (by right or special permit). •Establish development standards for: •Site design/layout. •Proximity to incompatible zones (housing, parks, schools). •Environmental impacts (noise, light, traffic). Pa g e 3 2 5 o f 4 6 4 City Council Discussion Points (October 28, 2024) 6 •Location •Buffers: 250 ft, 500 ft, and 1,000 ft from residential zones. •Inclusion of C-3 zoning as allowable. •Areas near truck routes •Operations •24/7 Onsite management (necessary or not) •Limit parking to 48 hours, with flexibility for weekends, holidays, inclement weather •Evaluate alignment with existing Residential Park/Vehicle standards for landscaping, buffers, utilities Pa g e 3 2 6 o f 4 6 4 7 *Map displaying current parcels zoned C-3, and Industrial. Pa g e 3 2 7 o f 4 6 4 8 *Unincorporated Areas within Urban Growth Area (ex: “Donut Holes”) are reviewed under  Franklin County Codes. Pa g e 3 2 8 o f 4 6 4 Key Proposal Recommendations 9 As recommended by Pasco Planning Commission •Create new Chapter and Definition in PMC: •“Overnight Truck Parking and Habitation Facility” means an off-street site  where commercial vehicle drivers can park their vehicles, with or without an attached trailer, where said driver can access on-site amenities and sleep in their vehicle. •Permitted Zones: I-1, I-2, I-3, via Special Permit •Proximity Restrictions: Prohibited within 1,000’ of residential or  mixed-use, existing residential uses, parks, and schools. •Maximum Facility Size: 15 acres Pa g e 3 2 9 o f 4 6 4 Key Proposal Recommendations 10 As recommended by Pasco Planning Commission •Facility Access: Site access shall be to/from truck routes in PMC: •Lewis Street: West city limits to 20th Avenue. •20th Avenue: Lewis Street to "A" Street. •"A" Street: 20th Avenue to east city limits. •10th Avenue: "A" Street to Ainsworth Avenue. •Ainsworth Avenue: 10th Avenue to east city limits. •Maitland Avenue: Ainsworth Avenue to "A" Street. •Oregon Avenue: Oregon Street Interchange with SR 12 to "A" Street. •4th Avenue: North city limits to 4th Avenue Interchange with SR 12. •All streets in areas zoned I-1 or I-2. •Heritage Blvd: SR 12 interchange to "A" Street. Pa g e 3 3 0 o f 4 6 4 Key Proposal Recommendations 11 As recommended by Pasco Planning Commission •Maximum Stay: 72 Hours •City Council discussion recommend 48 with flexibility •Security: Required 24/7 onsite management •City Council discussion on reducing this requirement •Development Standards •Current proposal required fully paved site •City Council discussion on reducing this requirement to gravel Pa g e 3 3 1 o f 4 6 4 Proposal Considerations 12 •Balancing Freight Operations and Compatibility •Support freight operations while minimizing conflicts with residential areas. •Apply or modify infrastructure standards for truck parking facilities. •Ensure neighborhood safety through clear operational requirements. •Next Steps •Council feedback and direction. •Staff to prepare updated ordinance for City Council review. Pa g e 3 3 2 o f 4 6 4 QuestionsPa g e 3 3 3 o f 4 6 4 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Maria Serra, Director Public Works SUBJECT: Update - Amending Sections of the Pasco Municipal Code Titles 13 and 3 Related to Pasco Water Reuse Facility (PWRF) (15 Minutes) I. REFERENCE(S): Proposed Ordinance List of Previous Council meeting items related to Processor WTAs and Rate setting, WTA with Burnham and PWRF Pretreatment updates (non-project specific) Presentation Cost of Service Analysis Model (printout) II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation from Deputy City Manager R. Sigdel, Public Works Director M. Serra and Legal Counsel S. DiJulio regarding the next actions related to the Pasco Water Reuse Facility (PWRF). III. FISCAL IMPACT: proposed The users. PWRF for ordinance base establishes The rates ordinance is consistent with a 30-year repayment schedule for the City's capital and other committed costs; at this time, no risk premium is proposed. This ordinance currently precludes the execution of individual Wastewater Treatment Agreements (WTA) with Industrial Users. WTAs may be pursued in the future if a sufficient number of processors commit to them in a form acceptable to the City. IV. HISTORY AND FACTS BRIEF: The City owns and operates the Process Water Reuse Facility (PWRF), an industrial wastewater treatment system that treats wastewater from agricultural and food processors. Pasco Municipal Code (PMC) Section 13.55.010 governs Page 334 of 464 PWRF discharge characteristics and the rate/billing model for industrial users of the system. The facility needed upgrading to expand its storage and treatment capacity which included incorporating new technology to support both existing and future agricultural and dairy processors. These improvements, including treatment enhances significantly system, the to upgrades pretreatment capacity, benefiting processors and the local community. The expansion, approved by Ecology, includes a phased approach: completion of potable water and electrical service extensions (Phase 1), ongoing construction of additional winter storage ponds (Phase 2) with expected operational status by 2025, and industrial wastewater pretreatment improvements (Phase 3), also set for completion in 2025. City and the processors worked together to explore and decide on these new solutions. On January 10, 2022, staff presented proposed updates to the PWRF, which included the potential for a Renewable Natural Gas (RNG) option that would help reduce costs for processors. Council expressed support for the concept, leading to the selection of Burnham SEV as the renewable natural gas (RNG) project developer. Burnham SEV is financing, designing, constructing, and operating treat from wastewater will the The PWRF. upgraded PWRF processors, producing RNG, which will be sold on the voluntary RNG market. The revenue from RNG sales will be allocated to the PWRF fund. The City entered a 30-year contract with Burnham SEV for the construction, financing, and operation of the treatment facility, and is advancing with other major capital improvements. To formalize the terms of wastewater treatment, the City developed a Water Treatment Agreement (WTA) for each processor, specifying the proportionate fee for services based on factors like annual and peak flows, as well as concentrations of Biochemical Oxygen Demand (BOD), nitrogen, and Total Suspended Solids (TSS). The City engaged FCS Group to create a rate model for determining the fees. This model (“Cost of Service Analysis”) was reviewed in several meetings with processors over a number of years. Processors provided feedback; however, in September 2024 processors expressed reluctance to commit to a 30-year agreement. City staff held monthly meetings with processors to encourage communication and coordination, covering topics like operations, capital project updates, and billing questions. Consultants, such as FCS, have been involved in these meetings to assist with specific items like the rate model. Since 2018, the City has presented multiple updates to the processors, Council on the PWRF, the WTA, and the agreement with Burnham. Since the last presentation to Council on this topic, two meetings were held Page 335 of 464 between processors and the Mayor to address concerns and comments on the WTAs and the proposed Code amendment ordinance. Comments to the WTA were proposed to comments Similarly, the responded and evaluated to. ordinance and an older PWRF ordinance from 1995 were received and evaluated. At this time, Processor Agreements (WTAs) have not been executed. Major revisions to the WTA would have to occur for the processors to be amenable to entering the agreements; with each processor with individual request. Many of the requested changes cannot be accommodated within the structure of a public utility provider. Staff plans to continue working with the processors collectively to explore a path for standard WTA and a 10 year ordinance combination in the first quarter of 2025. In the meantime, the ordinance removes all risks from the processor, a major concern on their end, and provides a no with facility and turnkey year 30 a with them payback commitments. A revised ordinance has been developed incorporating processor feedback and to address certain of their concerns. Modifications to the Pasco Municipal Code (PMC) are necessary prior to January 1, 2025. V. DISCUSSION: The proposed ordinance updates the Pasco Municipal Code, specifically Section 13.55 (Ch. 13.55 Process Water Reuse Facility Usage Limitations, Rates and Charges | Pasco Municipal Code), which governs water and sewer utility services, with a focus on the Process Water Reuse Facility (PWRF). The existing code was written for the facility's operations prior to its recent improvements and does not address the complexities of the upgraded system. The updated ordinance aims to ensure the facility can meet the current and future of industrial users by supporting necessary demands wastewater repairs, upgrades, and expansions. A key aspect of the ordinance is the City’s collaboration with Burnham SEV Pasco, LLC, which will manage the development of the new PWRF Project. This project will incorporate advanced wastewater treatment technologies, under a partnership supported by an agreement approved by the City Council. The ordinance also addresses the financial aspects of the PWRF, including a cost-of-service analysis conducted with the financial consultant FCS, Inc. It establishes unit prices for effluent treatment based on a Cost of Service Model, specifying rates by parameter treated. The ordinance incorporates feedback from processors and modifies the previously proposed terms where possible. Page 336 of 464 These modifications include:  A 30-year repayment period for the facility's costs.  The current exclusion of a risk premium.  Fixed, blended rates that make pricing predictable.  Provisions for annual rate reviews and adjustments, with a processor meeting to discuss proposed changes.  The requirement that any rate adjustments must be approved by City Council. (The City Council retains the discretion to amend the City's ordinances and Code as appropriate, in the absence of a contract that otherwise binds the City.)  The establishment of latecomer charges for new processors joining the facility. This structure ensures the City can meet its present financial obligations related to the PWRF while reducing the financial burden on processors from a more accelerated amortization schedule for the City’s capital obligations. Additionally, the ordinance is designed to maintain the financial stability of the City’s utility services and ensure continued and improved wastewater treatment for the community. The proposed changes are set to take effect on January 1, 2025. Staff recommends approval of the ordinance as presented. Page 337 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 CITY OF PASCO, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, RELATING TO THE CITY’S WATER/SEWER UTILITY; CONFIRMING REQUIREMENTS FOR PROPERTY CONNECTION TO THE CITY’S UTILITY; REVISING RATES AND CHARGES FOR THE CITY WATER REUSE FACILITY; AMENDING THE PASCO MUNICIPAL CODE; AND PROVIDING FOR RELATED MATTERS. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DOES HEREBY ORDAIN as follows: Section 1. RECITALS AND FINDINGS. The City Council of the City of Pasco, Washington (“City”) takes note of the following facts and makes the following findings and determinations. 1.1 The City established and maintains a combined Water/Sewer Utility (“Utility”) under RCW 35.67.010(5) and Pasco Municipal Code (“PMC”) 13.10.010. The Utility contains the City’s water system, irrigation system, sewer (wastewater) system, storm water system, and process water reuse system (for wastewater from certain food and agricultural processors). The Utility maintains separate books and records for each system itemizing system costs, revenues, assets, liabilities, deferred inflows, deferred outflows, and fund balances. All revenues of the Utility are managed through the City’s Water/Sewer Utility Fund. PMC 3.240.010. 1.2 The City’s process water reuse system operates a Process Water Reuse Facility (“PWRF”) to treat industrial wastewater influent from certain food and agricultural processors (“Processors”) in the City. The current PWRF system reached its design life and capacity, such that repair, replacement, upgrades, and expansion are necessary to accommodate current and expanding Processor wastewater. The City planned for and received approval from the Department of Ecology (“Ecology”) for the facility plan to upgrade and expand the PWRF (“Project”). 1.3 The City acted under Chapter 70A.140 RCW, the Water Quality Joint Development Act, to solicit proposals from private vendors for the PWRF, a water pollution control facility. Burnham SEV Pasco, LLC (“Burnham SEV”), a developer of renewable natural gas (RNG) projects was selected as the City’s service provider through processes outlined in Chapter 70A.140 RCW. Pursuant to an agreement with the City, Burnham SEV is privately developing the new PWRF Project, using a low-rate anaerobic digester and nitrogen removal system along with a renewable natural gas plant at the City’s PWRF property. 1.4 City and Burnham SEV entered an agreement (November 24, 2021) to allocate responsibility for the cost of initial engineering for the System. Pursuant to RCW 70A.140.040(9) and prior to execution of the Wastewater Treatment Agreement Page 338 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 (“Agreement”) with Burnham SEV, the City submitted a draft of the Agreement as the form of a “proposed service agreement” to Ecology to review for consistency with Chapters 90.46 and 90.48 RCW as a condition precedent to the City’s authority to execute the Agreement.; Ecology determined the Agreement form to be consistent with the referenced statutes. 1.5 A public hearing concerning the proposed Agreement was conducted by the City Council on February 6, 2023. On April 11, 2023, the City Council met and adopted Resolution No. 4335 approving the Agreement. Following adoption of Resolution No. 4335, Burnham and the City executed the Agreement. 1.6 To provide for economies of scale and for uniform application of its Utility systems, the City mandates use of the Utility except in limited circumstances. See, PMC 13.70.090; and PMC 13.55.010 applicable to Processors (“Industrial users” of the PWRF system). The City has provided for regular review of its rates and charges to meet anticipated expenditures of the Utility, including but not limited to debt service, operating, replacement, upgrading, and expansion requirements, and that the Utility has the adequate functional capability of providing a desirable level of service to the community and the service area. This Ordinance provides necessary support for the PWRF and Project, and to provide for continuing and improved service to Processors and the community through better management of wastewater treatment and disposal. 1.7 The PWRF capital infrastructure investments, accompanied with a renewable natural gas system, required long term debt issuances to fund improvements as well as long term contractual service agreement to fund improvements. Consequently, the City with its consultant FCS, Inc, prepared a cost-of-service analysis (“Rate Study”), including a blended unit cost structure for services to any customers of the PWRF. The rates in this ordinance do not include a risk premium to account for the long-term debt and contractual obligations A 30-year cost recovery timeframe is used to develop unit charges for the costs associated with capital improvements and other PWRF obligations. This rate structure intends to meet the City’s long-term debt commitments and obligations, all consistent with RCW 35.67.020(2).The Project and development of the Rate Study was conducted by the City with regular communications and meeting with Processors over the past 6 years. Section 2.CHAPTER 13.55 PMC AMENDED. 2.1 PMC 13.55.010 is amended to read as follows: Industrial users shall connecting to the City’s Process Water Reuse Facility. For purpose of this Section, “industrial users” are those food and agricultural processors producing effluent that is better treated by the City’s process water reuse facilities and not by the sewer (wastewater) system. The City shall determine the system of the Utility to which an industrial user is required to Page 339 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 connect. Industrial users shall also be required to connect to the City’s municipal water system. shall further be Industrial users are required to secure all necessary permits prior to connection to the process water reuse facilities. In addition, industrial users shall install at their sole expense, City-approved monitoring stations, including meters and automatic samplers on their wastewater discharge lines for purposes of monitoring the volume, strength, and characteristics of their plant discharges into the City’s system. The meters shall be connected to the City instrumentation and control system. Industrial users may be required to provide screening, pH control, and/or pretreatment of user’s waste. The monitoring stations and acquired data shall be open to City employees at all times for their inspection and the data obtained from the monitoring stations shall be used by the City to determine the actual variable operating costs as set forth in contract or PMC 13.55.020 (2) or as otherwise provided in this Code, based upon the actual volume, strength and characteristics of the user’s discharges, as well as anticipated expenditures of the Utility, including but not limited to debt service, operating, repair and replacement, upgrading, and expansion requirements. 2.2 A new section, PMC 13.55.015, entitled Definitions, is added to the Pasco Municipal Code, as follows: PMC 13.55.015 DEFINITIONS 1. “Agreement means the Wastewater Treatment Agreement between the City and Burnham SEV Pasco (2023), as may be subsequently amended. 2. “MG” means millions of gallons. 3. “MGD” means millions of gallons per day. 4. “Rate Study” means that study prepared by the City and FCS, Inc. (2024), including narrative recordings of background meetings with processors, all on file with the City Clerk. Provided, however, any application to processor rates from revenue received by the City under the Agreement for renewable natural gas (RNG) payments are to be based on a processor’s actual BOD contributions (not permitted amounts) in the prior year. 5. “PPD” means pounds per day. 6. “PWRF” means the Process Water Reuse Facility, including facilities under the Agreement. 2.3 Effective January 1, 2025, PMC 13.55.020 is repealed and a new section, PMC 13.55.025, entitled Pricing Schedule – Systems and City Facilities Costs, is added to the Pasco Municipal Code, as follows: 13.55.025 Pricing Schedule – Systems and City Facilities Costs. The City Manager or designee, upon consultation with the Utility and Processors, shall calculate and adjust rates and charges for Processors users of the PWRF as needed but no less than on an annual basis at the beginning of each year following Page 340 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 2025. Rates and charges shall be based on costs allocated among PWRF users based on factors assigned in the Rate Study. These costs include, but are not limited to: 1. Fees associated with the Agreement, a. System Base Fee, as adjusted annually in conjunction with the Agreement. b. System Pass-Through Costs, with 10% markup under the Agreement: i. Solid waste disposal (including anaerobic sludge: periodic digester scrapes and clean-outs and any algae or biomass removed from the Gross Wen Process) ii. Consumables (including replacement parts & associated rental equipment) iii. Major maintenance expenses c. System Pass-Through Costs, no markup, i. Electricity ii. Potable water iii. Purchased natural gas for system heating use iv. All City, state, and local taxes with the exception of income taxes (e.g., sales tax, B&O tax, property tax, as applicable v. Rental payments made to the City under the site lease vi. Any costs and fees associated with securing and maintaining an Agreement performance bond 2. Cost for City Facilities a. Rate calculation includes: i. Evaluation of annual anticipated operating and maintenance expenditures, ii. Support for debt service including legally required reserves and set aside for debt service coverage, iii. Capital charges unsupported by debt financing. 1. Budgeted and Council-approved capital improvements, including new asset purchase or construction, replacement, upgrading and expansion requirements. 2. Cash flow required support of capital improvements awaiting reimbursement from loan, bond or grant funding, if temporarily necessary iv. Special projects 3. Annual adjustment. Based on the Rate Study methodology and actual allocation elements from each Processor, the City Manager or designee shall recommend adjustments following the close of the prior year or as otherwise determined in the best interest of the Utility. Prior to any annual or other adjustments to the rates and charges under this Chapter, the City shall convene a meeting to which processors are invited for processor input and comment to the City on the proposed adjustment. The adjustment accounts for Processor wastewater permitted contribution, flow and constituents to the PWRF. Additional adjustments in each subsequent year shall be based on a processor’s BOD contributions (not permitted amounts) in the prior year and revenues to the Page 341 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 City from RNG payments to the City under the Agreement for RNG sales. Where appropriate, necessary reserve balances will be amended or established as part of the rate adjustment. 4. Overage Charges/Effluent Characteristics. The PWRF has a fluctuating and finite capacity to accept process wastewater. Therefore, the base monthly charge has been calculated to include a capacity and limitation allowance for effluent volumes, strengths and characteristics (collectively, “characteristics”). The characteristics for each processor are set forth in the City of Pasco-issued Wastewater Discharge permits of each processor. Each processor shall be monitored for compliance to the approved characteristics. Based on the usage limitations in each processor’s permit, consecutive 15-day allowances for the permit characteristics will be monitored for and enforced against each processor. See Chapter 13.90 PMC. 5. Latecomers. Processors not connected to or otherwise permitted by the City to discharge to the PWRF at the time of adoption of this Ordinance shall not connect until a latecomer charge, system development fee, or other charges are established by the City to equitably account for the additional flows to the PWRF. 2.4 A new section 13.55.050, entitled Process Water Reuse Fees Controlling, is added to the Pasco Municipal Code as follows: PMC 13.55.050 Process Water Reuse Fees Controlling This Chapter 13.55 PMC shall apply to customers of the Utility’s Process Water Reuse Facilities, notwithstanding provision of the Code that may conflict with this Chapter 13.55 PMC. In the event of a conflict between a City contract with food or agricultural processor for wastewater treatment, including for the water reuse facilities, this Chapter or another part of the Pasco Municipal Code shall be subordinate to such a contract. 2.5 A new section 13.55.060, entitled Process Water Reuse Facility Minimum Fees, is added to the Pasco Municipal Code as follows: 13.55.060 Process Water Reuse Facility Minimum Fees 1. All users of the Process Water Reuse Facilities shall pay rates charged under PMC 13.55.025, and beginning January 1, 2025, shall pay minimum rates charged under PMC 13.55.060(2). 2. PWRF Minimum Rates. Except for the fixed charge, the below rates are calculated on a calendar year basis, and charged monthly (one-twelfth) based on permitted characteristics applicable to each processor: Description Unit Cost Page 342 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 Fixed Charge (monthly cost per user)$ 8,488 Storage, per MG $727 Flow, per MGD $541 Nitrogen, per ppd $91 TSS, per ppd $1.11 Max Monthly Flow, per MGD $21,295 BOD, per ppd $4.16 3. Annual Adjustments. These minimum rates shall be subject to adjustments under PMC 13.55.025(3). Section 3.CHAPTER 3.35 PMC AMENDED. PMC Section 3.35.210 is hereby repealed. Section 4.CHAPTER 13.75 PMC AMENDED. PMC 13.75.060(1) is amended to read as follows: Rate. Septic tank waste discharged into the wastewater treatment plant will be charged on the basis of a full truck tank load at $0.24 per gallon rate as set forth in Chapter 3.35 PMC times the capacity of the truck’s tank in gallons; provided, however, any firm discharging septic tank pumpings at the wastewater treatment plant during the months of September through February shall be charged on the basis of a full truck tank load at $1.44 per gallon rate as set forth in Chapter3.35 PMC times the capacity of the truck’s tank in gallons when the gallons discharged exceed the average volume discharged by the firm at the wastewater treatment plant during the months of March through August. Section 5.CHAPTER 13.90 PMC AMENDED PMC 13.90.100, PWRF POTW local limits, is amended to read as follows: Conventional Surcharge. 6.0 minimum pH in standard units 12.0 maximum pH in standard units Standards and rates applicable to processors discharging to the PWRF are governed by Chapter 13.55 PMC. In the event of a conflict between Chapter 13.90 PMC and Chapter 13.55 PMC, Chapter 13.55 PMC controls. Section 6. SEVERABILITY. If any one or more section, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. Page 343 of 464 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 Section 7. 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 8. EFFECTIVE DATE. This ordinance shall take effect and be in force five (5) days from and after its publication as required by law. PASSED by the City Council and APPROVED by the Mayor of the City of Pasco, Washington, at a regular open public meeting thereof, this ___ day of December, 2024. ________________________________ Pete Serrano, Mayor ATTEST:APPROVED AS TO FORM: __________________________________ Debra Barham, CMC, City Clerk Published on: __________________________ ____________________________________ Kerr Ferguson Law, PLLC City Attorney Page 344 of 464 Updated 11/27/2024 Previous Council Items related to Wastewater agreement (WTA) with Burnham SEV, LLC o Resolution- Process Water Reuse Facility (PWRF) + Renewable Natural Gas (RNG) Request for Proposal (RFP) – Ratification of Selected Respondent Council. Mtg. 5.16.2022 o Resolution - Process Water Reuse Facility (PWRF) Work Acceleration Agreement with Burnham SEV Council WS 8.22.2022 o Resolution No. 4233 - Process Water Reuse Facility (PWRF) Work Acceleration Agreement with Burnham SEV Council Mtg. 9.6.22 o Discussion - Process Water Reuse Facility – Draft Wastewater Treatment Agreement with Burnham SEV Council WS 9.26.2022 o Review Proposed Process Water Reuse Facility Wastewater Treatment Agreement with Burnham SEV Pasco, LLC Council WS 1.23.2023 o Public Hearing for Burnham Wastewater Treatment Agreement – Process Water Reuse Facility (PWRF) Pretreatment Improvement Phase 3 Project Council Mtg 2.6.2023 o Resolution No. 4335 - Burnham Wastewater Treatment Agreement – Process Water Reuse Facility (PWRF) Pretreatment Improvement Phase 3 Project Council Mtg. 4.3.2023 Previous Council Items related to Wastewater agreement (WTA) with Processors o Presentation - Processors Wastewater Treatment Agreement Council WS 2.13.2023 o Resolution No. 4311 Process Water Reuse Facility (PWRF) Draft Processor Wastewater Treatment Agreement (WTA) Council Mtg 2.21.2023 o Resolution No. 4311, Process Water Reuse Facility (PWRF) Draft Processor Wastewater Treatment Agreement (WTA) Council Spec. Mtg 2.27.2023 o Resolution No. 4334 - Process Water Reuse Facility (PWRF) Processor Wastewater Treatment Agreement (WTA) Council Mtg. 4.3.2023 o Ordinance - Amending Sections of the Pasco Municipal Code Titles 13 and 3 Related to Pasco Water Reuse Facility (PWRF) Council WS 8.26.2024 Previous Council Items related to Pasco Water Reuse Facility updates since 2019 (non-project specific) o Pasco process Water Reuse Facility (PWRF) Update. Council WS 5.13.2019 o PWRF Pretreatment Update. Council WS 08.24.2020 o PWRF Pretreatment Improvements – Update. Council WS 1.10.2022 Page 345 of 464 December 2, 2024 Pasco City Council Regular Meeting DISCUSSION Pa g e 3 4 6 o f 4 6 4 Amendment to PMC Chapter 13 -PWRF Rate Ordinance December 2, 2024 Pasco City Council Pa g e 3 4 7 o f 4 6 4 City Utility systems: •Water •Irrigation •Wastewater/Municipal Sewer •Stormwater •Process Water Reuse Each services costs need to be paid by customers who use the service. PMV Title 13 Water and Sewers Pa g e 3 4 8 o f 4 6 4 Rate Setting for every Utility 4 Assess revenue requirements to meet all financial obligations: •Operating and Maintenance •Debt Service •Capital Costs Cost of service: •Allocate costs to customer classes based on cost drivers and demand on system. •No class of customer subsidize another. Must evaluate utilities separately to protect rate payers. Pa g e 3 4 9 o f 4 6 4 PMC Chapter 13 – PWRF 5 Proposed ordinance: •Addresses new facility complexity •Aims to ensure the utility can meet the current and future demands of industrial users by supporting necessary repairs, upgrades, and expansions. •Identifies the City’s partnership with Burnham SEV Pasco, LLC . •Includes the cost-of-service analysis Pa g e 3 5 0 o f 4 6 4 PMC Chapter 13 – PWRF (cont.) 6 •Sets rates for users: unit prices for effluent treatment based on a Cost of Service Model, specifying rates by parameter treated. Description Unit Cost Fixed Charges (monthly Cost per user)$8,488 Storage, Per MG $727 Flow, Per MGD $541 Nitrogen, Per ppd $91 TSS, per ppd $1.11 Max Monthly flow, per MGD $21,295 BOD, per ppd $4.16 Pa g e 3 5 1 o f 4 6 4 Revised Ordinance 7 Incorporates feedback from processors and modifies the previously proposed terms where possible. •30-year repayment period •Blended rates (no longer tailored to each processor) •RNG credits specifically mentioned to be allocated to PWRF Fund •Annual Rate Update via Council action •Review proposed rate changes with processors Pa g e 3 5 2 o f 4 6 4 Revised Ordinance (Cont.) 8 Incorporates feedback from processors and modifies the previously proposed terms where possible. •Addresses latecomers and buy-in process •Eliminates “Contracted Processor” language •Clarifying questions on ordinance Pa g e 3 5 3 o f 4 6 4 Background 9 Original Ordinance: •Standard rate for treatment to all processors •10-year repayment •No credits back to Processors •Applicable to non-WTA users WTA with each processor •Tailored rates (recognizing existing processor flows) •30-year commitment •30-year repayment •RNG and Federal Tax Credits back to processors •Required signature of WTA Pa g e 3 5 4 o f 4 6 4 Revised Rate Comparison 10 WTA ORIGINAL ORDINANCEREVISED ORDINANCE Pa g e 3 5 5 o f 4 6 4 11 Description Unit Cost Original Ordinance Unit Cost Revised Ordinance Fixed Charges (monthly Cost per user)$8,488 $8,488 Storage, Per MG $1,520 $727 Flow, Per MGD $1,603 $541 Nitrogen, Per ppd $291 $91 TSS, per ppd $1.11 $1.11 Max Monthly flow, per MGD $75,974 $21,295 BOD, per ppd $5.39 $4.16 Revised Rate Comparison Pa g e 3 5 6 o f 4 6 4 Risks to City 12 •Any processor pausing operations or ceasing operations •Funds would have to be likely taken from General Fund though debts are backed by Water, Sewer, Irrigation, and Stormwater utilities legally. •Depending on the processor, more than 6 months of nonpayment will initiate other funds to be identified. Pa g e 3 5 7 o f 4 6 4 Mitigation 13 •Hold federal tax credit as a risk pool, in PWRF Reserve Fund, amount not known at this time ($40-$70 million estimated) •Rate update with Council Action Pa g e 3 5 8 o f 4 6 4 Next Steps 14 •Ordinance adoption on 12/9 special Meeting •New Ordinance to be effective as of 1/1/2025 Pa g e 3 5 9 o f 4 6 4 Questions?Pa g e 3 6 0 o f 4 6 4 Asset Detail Cost Allocations Cost of Service Results City of Pasco PWRF Rate Study & COSA REVENUE REQUIREMENT COST OF SERVICE CIP O&M Budget Existing Debt General Assump. Historical Inflation Capital Funding This color denotesINPUTS This color denotes RESULTS Plant Cost of Service Functional Allocation Revenue Req. Summary Fund Activity NOTEThis document is for reference purposes only.The active model is run in Excel worksheets, and the formatting may not fully support a printed version. Pa g e 3 6 1 o f 4 6 4 City of Pasco PWRF Rate Study & COSA Summary Revenues Rate Revenues Under Existing Rates 4,930,040$ 4,930,040$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ Non-Rate Revenues 10,000 167,666 32,817 16,409 16,409 16,409 16,409 Total Revenues 4,940,040$ 5,097,706$ 5,832,817$ 5,816,409$ 5,816,409$ 5,816,409$ 5,816,409$ Expenses Cash Operating Expenses (City Costs)3,070,926$ 3,634,005$ 3,454,990$ 3,588,245$ 3,681,080$ 3,776,699$ 3,875,187$ Cash Operating Expenses (Burnham)- - 14,251,860 14,893,194 15,339,990 15,800,189 16,274,195 Existing Debt Service 2,001,888 2,289,580 2,981,630 2,555,492 2,557,590 2,413,494 2,407,956 New Debt Service - 2,408,688 2,717,560 2,717,560 2,717,560 2,717,560 2,717,560 Rate Funded System Reinvestment - - - - - - - Total Expenses 5,072,814$ 8,332,273$ 23,406,041$ 23,754,492$ 24,296,219$ 24,707,942$ 25,274,898$ Net Surplus (Deficiency)(132,774)$ (3,234,567)$ (17,573,223)$ (17,938,083)$ (18,479,811)$ (18,891,534)$ (19,458,489)$ Additions to Meet Coverage - - - - - - - Total Surplus (Deficiency)(132,774)$ (3,234,567)$ (17,573,223)$ (17,938,083)$ (18,479,811)$ (18,891,534)$ (19,458,489)$ % of Rate Revenue 2.69%65.61%302.99%309.28%318.62%325.72%335.49% Annual Rate Adjustment 0.00% 71.70% 151.09% 1.59% 2.33% 1.73% 2.34% Cumulative Annual Rate Adjustment 0.00% 71.70% 331.13% 338.01% 348.22% 355.97% 366.66% Rate Revenues After Rate Increase 4,930,040$ 8,465,086$ 25,005,708$ 25,404,462$ 25,996,514$ 26,446,485$ 27,066,108$ Additional In-Lieu of Taxes from Rate Increase -$ 300,479$ 1,632,485$ 1,666,379$ 1,716,704$ 1,754,951$ 1,807,619$ Net Cash Flow After Rate Increase (132,774)$ 0$ (0)$ 0$ (0)$ (0)$ (0)$ Coverage After Rate Increases 1.31 2.97 2.77 2.45 2.41 2.51 2.51 Revenue Requirement 2022 2023 2024 2027 20282025 2026 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2022 2023 2024 2025 2026 2027 2028 Revenue vs. Expenses Cash Operating Expenses (City Costs)Additional In-Lieu of Taxes from Rate Increase Existing Debt Service New Debt Service Rate Funded System Reinvestment Total Revenue Before Increase Pa g e 3 6 2 o f 4 6 4 City of Pasco PWRF Rate Study & COSA Summary OPERATING FUND Beginning Balance 6,532,732$ 3,948,893$ 893$ 893$ 893$ 893$ 893$ plus: Net Cash Flow after Rate Increase (132,774) 0 (0) 0 (0) (0) (0) less: Transfer of Surplus to Capital Fund (2,000,000) (3,948,000) - - - - - Ending Balance 4,399,958$ 893$ 893$ 893$ 893$ 893$ 893$ O&M Target Balance 504,810$ 597,371$ 2,910,715$ 3,038,045$ 3,126,751$ 3,218,119$ 3,312,227$ Days 523 0 0 0 0 0 0 CAPITAL Beginning Balance -$ -$ 21,465,352$ 7,303,659$ 65,876$ 66,534$ 67,200$ plus: Rate Funded System Reinvestment/ Equipment Transfers - - - - - - - plus: Transfers from Operating Fund 2,000,000 3,948,000 - - - - - plus: Grants/ Donations/ CIAC - - - - - - - plus: Additional Proceeds (Costs)- 23,810,000 9,400,000 387,695 - - - plus: Capital Expansion Fee Revenue - - - - - - - plus: Net Debt Proceeds Available for Projects - 41,967,352 5,000,000 - - - - plus: Interest Earnings - - 429,307 73,037 659 665 672 Total Funding Sources 2,000,000$ 69,725,352$ 36,294,659$ 7,764,391$ 66,534$ 67,200$ 67,872$ less: Capital Expenditures - (48,260,000) (28,991,000) (7,698,515) - - - Ending Working Capital Balance 2,000,000$ 21,465,352$ 7,303,659$ 65,876$ 66,534$ 67,200$ 67,872$ Minimum Target Balance 868,897$ 1,834,097$ 2,413,917$ 2,567,888$ 2,567,888$ 2,567,888$ 2,567,888$ COMBINED BEGINNING FUND BALANCE 6,532,732$ 3,948,893$ 21,466,245$ 7,304,552$ 66,769$ 67,428$ 68,093$ COMBINED ENDING FUND BALANCE 6,399,958$ 21,466,245$ 7,304,552$ 66,769$ 67,428$ 68,093$ 68,765$ Combined Days 761 2,156 774 7 7 7 6 Total Combined Ending Fund Balance Target 1,373,707$ 2,431,468$ 5,324,633$ 5,605,932$ 5,694,639$ 5,786,006$ 5,880,115$ Notes: Additional proceeds (costs) consist of the following:FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 PWRF Irrigation System - Beus Property -$ -$ -$ -$ -$ -$ -$ PWRF Pretreatment Improvements (Phase 2) Winter Storage - 360,000 - - - - - PWRF Land Acquisition and Irrigation System - 13,250,000 - - - - - Replace Circle 5 and 7 Pivots - - - 387,695 - - - Additional State Grants - - 9,400,000 - - - - Fund Balance 2022 2023 2024 2027 20282025 2026 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2022 2023 2024 2025 2026 2027 2028 Ending Balances vs. Target Operating Ending Balance Capital Ending Balance Capital Target Balance Operating Target BalancePa g e 3 6 3 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Assumptions 2022 2023 2024 2025 2026 2027 2028 2029 General Cost Inflation 6.00% 6.00% 6.00% 4.50% 3.00% 3.00% 3.00% 3.00% Construction Cost Inflation 6.00% 6.00% 6.00% 4.50% 3.00% 3.00% 3.00% 3.00% Labor Cost Inflation 6.00% 5.00% 5.00% 4.50% 3.00% 3.00% 3.00% 3.00% Benefit Cost Inflation 5.00% 5.00% 5.00% 4.50% 3.00% 3.00% 3.00% 3.00% General Inflation plus Composite Growth 6.00% 6.00% 6.00% 4.50% 3.00% 3.00% 3.00% 3.00% Flow Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Pasco Processing Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Freeze Pack Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Twin City Foods Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Reser's New Plant Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Simplot Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Grimmway Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Darigold WW Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% No Escalation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% [Extra]0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Investment Interest 0.15% 3.00% 2.00% 1.00% 1.00% 1.00% 1.00% 1.00% Excise Taxes 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% B&O Taxes 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% City Tax 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 2022 2023 2024 2025 2026 2027 2028 2029 FISCAL POLICY RESTRICTIONS Min. Op. Fund Balance Target (days of O&M expense)60 60 60 60 60 60 60 60 Max. Op. Fund Balance (days of O&M expense)60 60 60 60 60 60 60 60 Minimum Capital Fund Balance Target Select Minimum Capital Fund Balance Target 1 Defined as % of Plant 1 - Defined as % of Plant Estimated Assets Plant-in-Service in 2022 43,444,871$ 868,897$ 1,834,097$ 2,413,917$ 2,567,888$ 2,567,888$ 2,567,888$ 2,567,888$ 2,911,017$ Minimum Capital Fund Balance - % of plant assets 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2 - Amount at Right ==> -$ -$ -$ -$ -$ -$ -$ -$ RATE FUNDED SYSTEM REINVESTMENT Select Reinvestment Funding Strategy 4 System Reinvestment is not Funded Amount of Annual Cash Funding from Rates 1 - Equal to Annual Depreciation Expense -$ 2,500,561$ 3,225,336$ 3,417,799$ 3,417,799$ 3,417,799$ 3,417,799$ 3,846,710$ 2 - Equal to Annual Depreciation Expense less Annual Debt Principal Payments (1,305,642) (997,452) (543,494) (125,169) (208,313) (146,799) (226,432) 207,920 3 - Equal to Amount at Right ==> -$ 2,500,561$ 3,225,336$ 3,225,336$ 3,225,336$ 3,225,336$ 3,225,336$ 3,225,336$ 4 - Do Not Fund System Reinvestment Economic & Financial Factors Accounting Assumptions 11/27/2024 2:47 PM Pa g e 3 6 4 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 2022 2023 2024 2025 2026 2027 2028 2029 Capital Expansion Fees Current Capital Expansion Fees -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Meter Customer Equivalents - - - - - - - - Additional Units Per Year #DIV/0! - - - - - - - Capital Expansion Fee Revenues -$ -$ -$ -$ -$ -$ FUNDING SOURCES Grants -$ -$ -$ -$ -$ -$ -$ -$ Additional Proceeds (Costs) PWRF Irrigation System - Beus Property -$ -$ -$ -$ -$ -$ -$ -$ PWRF Pretreatment Improvements (Phase 2) Winter Storage - 360,000 - - - - - - PWRF Land Acquisition and Irrigation System - 13,250,000 - - - - - - Replace Circle 5 and 7 Pivots - - - 387,695 - - - - 2023 revenue bond proceeds 10,200,000 - - - - - - Additional State Grants - - 9,400,000 - - - - - Total Additional Proceeds -$ 23,810,000$ 9,400,000$ 387,695$ -$ -$ -$ -$ REVENUE BONDS Term (years)20 20 20 20 20 20 20 20 Interest Only Payments 0 0 0 0 0 0 0 0 Interest Rate 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Issuance Cost 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Revenue Bond Coverage Requirement 1.25 Use Reserves to Pay for Last Payment No PWTF LOANS Term 20 20 20 20 20 20 20 20 Interest Rate 2.55% 2.55% 2.55% 2.55% 2.55% 2.55% 2.55% 2.55% OTHER LOANS Term (years)20 20 20 20 20 20 20 20 Interest Rate 1.25% 1.25% 2.00% 1.25% 1.25% 1.25% 1.25% 1.25% Issuance Cost 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Capital Financing Assumptions 11/27/2024 2:47 PM Pa g e 3 6 5 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Operating Revenue and Expenditure Forecast Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 1 FORECAST BASIS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2 54.4655 State Taxes Calculated -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 54.4660 City Taxes Calculated 349,000 349,000 493,000 493,000 493,000 493,000 493,000 493,000 493,000 493,000 493,000 493,000 Prog 510 Utility Admin 51.1110 Wages Labor Cost Inflation 101,049$ 150,815$ 158,356$ 165,482$ 170,446$ 175,560$ 180,826$ 186,251$ 191,839$ 197,594$ 203,522$ 209,627$ 51.1120 Wages-Overtime Labor Cost Inflation 500 - - - - - - - - - - - 52.2160 Social Security Benefit Cost Inflation 7,730 23,323 24,489 25,591 26,359 27,150 27,964 28,803 29,667 30,557 31,474 32,418 52.2165 State Retirement Benefit Cost Inflation 13,209 11,787 12,376 12,933 13,321 13,721 14,133 14,557 14,993 15,443 15,906 16,383 52.2166 Deferred Compensation Benefit Cost Inflation - 2,321 2,437 2,547 2,623 2,702 2,783 2,866 2,952 3,041 3,132 3,226 52.2169 Life Insurance Benefit Cost Inflation 103 246 258 270 278 286 295 304 313 322 332 342 52.2170 Life Vision Worker Comp Benefit Cost Inflation 327 929 975 1,019 1,050 1,081 1,114 1,147 1,182 1,217 1,254 1,291 52.2171 Sick Leave Emp Security Dept Benefit Cost Inflation 150 180 189 198 203 210 216 222 229 236 243 250 52.2175 Auto Allowance No Escalation 768 768 768 768 768 768 768 768 768 768 768 768 52.2900 I/F Medical Vision Prem Benefit Cost Inflation 10,713 13,425 14,096 14,731 15,172 15,628 16,097 16,579 17,077 17,589 18,117 18,660 52.2901 I/F Dental Premium Benefit Cost Inflation 1,009 1,264 1,327 1,387 1,429 1,471 1,516 1,561 1,608 1,656 1,706 1,757 52.2902 I/F Vision Prem Employer Benefit Cost Inflation 63 79 83 87 89 92 95 98 100 104 107 110 53.3215 Office Janitorial Supplies General Cost Inflation 3,300 4,800 5,088 5,317 5,476 5,641 5,810 5,984 6,164 6,349 6,539 6,735 53.3220 O&M Supplies General Cost Inflation 15,400 29,076 30,821 32,207 33,174 34,169 35,194 36,250 37,337 38,457 39,611 40,799 53.3336 SCADA/Telemetry Services General Cost Inflation - 8,750 9,275 9,692 9,983 10,283 10,591 10,909 11,236 11,573 11,920 12,278 53.3890 City Mgr Discretionary Items General Cost Inflation 4,146 - - - - - - - - - - - 54.4510 Dues Subscription Membership General Cost Inflation 210 1,500 1,590 1,662 1,711 1,763 1,816 1,870 1,926 1,984 2,043 2,105 54.4512 Train Registration Tuition General Cost Inflation 3,500 4,190 4,441 4,641 4,781 4,924 5,072 5,224 5,380 5,542 5,708 5,879 54.4514 Lodging Meals Miles Airfare General Cost Inflation 5,000 5,550 5,883 6,148 6,332 6,522 6,718 6,919 7,127 7,341 7,561 7,788 54.4528 Consultants General Cost Inflation 35,000 240,000 100,000 104,500 107,635 110,864 114,190 117,616 121,144 124,778 128,522 132,377 54.4534 Janitorial Services General Cost Inflation 900 750 795 831 856 881 908 935 963 992 1,022 1,052 54.4536 SCADA/Telemetry Services General Cost Inflation 21,000 19,000 20,140 21,046 21,678 22,328 22,998 23,688 24,398 25,130 25,884 26,661 54.4541 Professional Services General Cost Inflation 150 10,070 10,674 11,155 11,489 11,834 12,189 12,555 12,931 13,319 13,719 14,130 54.4580 R&M Services Contracts General Cost Inflation 500 700 742 775 799 823 847 873 899 926 954 982 54.4588 Software Maintenance General Cost Inflation 16,125 11,050 11,713 12,240 12,607 12,986 13,375 13,776 14,190 14,615 15,054 15,505 54.4596 Telephone Cell Pagers General Cost Inflation 5,500 5,200 5,512 5,760 5,933 6,111 6,294 6,483 6,677 6,878 7,084 7,297 54.4598 Internet Web Communications General Cost Inflation 4,452 6,000 6,360 6,646 6,846 7,051 7,262 7,480 7,705 7,936 8,174 8,419 54.4635 Insurance Premiums & Claims General Cost Inflation 2,876 3,718 3,941 4,118 4,242 4,369 4,500 4,635 4,774 4,918 5,065 5,217 54.4900 I/F Admin Services General Cost Inflation 99,551 129,618 137,395 143,578 147,885 152,322 156,891 161,598 166,446 171,439 176,583 181,880 Prog 530 Plant Ops 51.1110 Wages Labor Cost Inflation 383,841$ 483,597$ 507,777$ 530,627$ 546,546$ 562,942$ 579,830$ 597,225$ 615,142$ 633,596$ 652,604$ 672,182$ 51.1120 Wages - Overtime Labor Cost Inflation 56,650 17,000 17,850 18,653 19,213 19,789 20,383 20,994 21,624 22,273 22,941 23,629 51.1115 Wages - Seasonal/Temp Labor Cost Inflation 14,823 - - - - - - - - - - - 52.2160 Social Security Benefit Cost Inflation 34,831 63,678 66,862 69,871 71,967 74,126 76,350 78,640 80,999 83,429 85,932 88,510 52.2165 State Retirement Benefit Cost Inflation 50,687 44,452 46,675 48,775 50,238 51,745 53,298 54,897 56,544 58,240 59,987 61,787 52.2166 Deferred Compensation Benefit Cost Inflation 10,538 13,488 14,162 14,800 15,244 15,701 16,172 16,657 17,157 17,672 18,202 18,748 52.2169 Life Insurance Benefit Cost Inflation 336 941 988 1,033 1,063 1,095 1,128 1,162 1,197 1,233 1,270 1,308 52.2170 Life Vision Worker Comp Benefit Cost Inflation 13,963 12,090 12,695 13,266 13,664 14,074 14,496 14,931 15,379 15,840 16,315 16,805 52.2171 Sick Leave Emp Security Dept Benefit Cost Inflation 589 695 730 763 785 809 833 858 884 911 938 966 52.2900 I/F Medical Vision Prem Benefit Cost Inflation 82,864 74,445 78,167 81,685 84,135 86,659 89,259 91,937 94,695 97,536 100,462 103,476 52.2901 I/F Dental Premium Benefit Cost Inflation 7,791 7,011 7,362 7,693 7,924 8,161 8,406 8,658 8,918 9,186 9,461 9,745 52.2902 I/F Vision Prem Employer Benefit Cost Inflation 407 438 460 481 495 510 525 541 557 574 591 609 53.3220 O&M Supplies General Cost Inflation 30,500 68,500 72,610 75,877 78,154 80,498 82,913 85,401 87,963 90,602 93,320 96,119 53.3235 R&M Supplies General Cost Inflation 215,810 256,800 272,208 284,457 292,991 301,781 310,834 320,159 329,764 339,657 349,847 360,342 53.3250 Gravel General Cost Inflation 20,000 20,000 21,200 22,154 22,819 23,503 24,208 24,935 25,683 26,453 27,247 28,064 53.3280 Inventory General Cost Inflation 60,409 62,989 66,768 69,773 71,866 74,022 76,243 78,530 80,886 83,313 85,812 88,386 53.3315 Fuel - gasoline-diesel General Cost Inflation 3,000 - - - - - - - - - - - 53.3325 Tools Equip Furn < $5,000 General Cost Inflation 5,700 14,600 15,476 16,172 16,658 17,157 17,672 18,202 18,748 19,311 19,890 20,487 54.4512 Train Registration Tuition General Cost Inflation 9,000 6,000 6,360 6,646 6,846 7,051 7,262 7,480 7,705 7,936 8,174 8,419 54.4514 Lodging Meals Miles Airfare General Cost Inflation 5,900 5,000 5,300 5,539 5,705 5,876 6,052 6,234 6,421 6,613 6,812 7,016 54.4516 Laundry General Cost Inflation 2,500 2,500 2,650 2,769 2,852 2,938 3,026 3,117 3,210 3,307 3,406 3,508 54.4538 Permits Liens Recording Licenses General Cost Inflation 21,000 22,500 23,850 24,923 25,671 26,441 27,234 28,051 28,893 29,760 30,652 31,572 54.4541 Professional Services General Cost Inflation 38,050 54,700 57,982 60,591 62,409 64,281 66,210 68,196 70,242 72,349 74,520 76,755 54.4582 R&M Other Services General Cost Inflation 407,000 445,000 471,700 492,927 507,714 522,946 538,634 554,793 571,437 588,580 606,237 624,425 54.4592 Vehicle Equip Other Rentals General Cost Inflation 126,100 161,300 170,978 178,672 184,032 189,553 195,240 201,097 207,130 213,344 219,744 226,336 54.4613 Electricity General Cost Inflation 78,000 78,000 82,680 86,401 88,993 91,662 94,412 97,245 100,162 103,167 106,262 109,450 54.4615 Electricity Pump/Lift Stations General Cost Inflation 54,000 54,000 57,240 59,816 61,610 63,459 65,362 67,323 69,343 71,423 73,566 75,773 54.4625 Garbage Waste Disposal General Cost Inflation 25,650 45,000 60,000 62,700 64,581 66,518 68,514 70,569 72,686 74,867 77,113 79,426 Revenues/Expenses 11/27/2024 2:47 PM Pa g e 3 6 6 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 54.4635 Insurance Premiums & Claims General Cost Inflation 13,393 14,430 15,296 15,984 16,464 16,958 17,466 17,990 18,530 19,086 19,658 20,248 54.4650 Property Tax Stmt Assessments General Cost Inflation 995 995 1,055 1,102 1,135 1,169 1,204 1,240 1,278 1,316 1,356 1,396 54.4665 Maint Project Services General Cost Inflation - 200,000 212,000 221,540 228,186 235,032 242,083 249,345 256,826 264,530 272,466 280,640 54.4910 I/F ER Vehicle Rent General Cost Inflation 92,466 78,550 83,263 87,010 89,620 92,309 95,078 97,930 100,868 103,894 107,011 110,221 54.4920 I/F ER O&M General Cost Inflation 55,000 45,250 47,965 50,123 51,627 53,176 54,771 56,414 58,107 59,850 61,645 63,495 54.4930 I/F ER Fuel General Cost Inflation 43,260 37,000 39,220 40,985 42,214 43,481 44,785 46,129 47,513 48,938 50,406 51,918 54.4950 I/F Eng O&M Chargebacks General Cost Inflation 48,010 48,010 50,891 53,181 54,776 56,419 58,112 59,855 61,651 63,501 65,406 67,368 32.2190 Other NonBus Lic/Permits General Cost Inflation 201,529 - - - - - - - - - - - Prog 531 Pre Treatment Plant 51.1110 Wages Labor Cost Inflation 37,978$ 48,513$ 50,939$ 53,231$ 54,828$ 56,473$ 58,167$ 59,912$ 61,709$ 63,560$ 65,467$ 67,431$ 51.1120 Wages - Overtime Labor Cost Inflation 500 - - - - - - - - - - - 52.2160 Social Security Benefit Cost Inflation 2,905 3,711 3,897 4,072 4,194 4,320 4,449 4,583 4,720 4,862 5,008 5,158 52.2165 State Retirement Benefit Cost Inflation 5,047 4,973 5,222 5,457 5,620 5,789 5,963 6,141 6,326 6,515 6,711 6,912 52.2169 Life Insurance Benefit Cost Inflation 31 100 105 110 113 116 120 123 127 131 135 139 52.2170 Life Vision Worker Comp Benefit Cost Inflation 195 1,242 1,304 1,363 1,404 1,446 1,489 1,534 1,580 1,627 1,676 1,726 52.2171 Sick Leave Emp Security Dept Benefit Cost Inflation 23 79 83 87 89 92 95 98 100 104 107 110 52.2900 I/F Medical Vision Prem Benefit Cost Inflation 4,068 7,976 8,375 8,752 9,014 9,285 9,563 9,850 10,146 10,450 10,763 11,086 52.2901 I/F Dental Premium Benefit Cost Inflation 383 752 790 825 850 875 902 929 957 985 1,015 1,045 52.2902 I/F Vision Prem Employer Benefit Cost Inflation 24 46 48 50 52 54 55 57 59 60 62 64 53.3220 O&M Supplies General Cost Inflation 1,700 2,650 2,809 2,935 3,023 3,114 3,208 3,304 3,403 3,505 3,610 3,718 53.3225 Chemicals General Cost Inflation - 250 265 277 285 294 303 312 321 331 341 351 53.3325 Tools Equip Furn < $5,000 General Cost Inflation 3,000 3,000 3,180 3,323 3,423 3,525 3,631 3,740 3,852 3,968 4,087 4,210 54.4512 Train Registration Tuition General Cost Inflation 3,000 650 689 720 742 764 787 810 835 860 886 912 54.4514 Lodging Meals Miles Airfare General Cost Inflation 2,000 1,000 1,060 1,108 1,141 1,175 1,210 1,247 1,284 1,323 1,362 1,403 54.4516 Laundry General Cost Inflation 250 - - - - - - - - - - - 54.4524 Advertising General Cost Inflation 500 1,000 1,060 1,108 1,141 1,175 1,210 1,247 1,284 1,323 1,362 1,403 54.4541 Professional Services General Cost Inflation 87,000 80,000 84,800 88,616 91,274 94,013 96,833 99,738 102,730 105,812 108,987 112,256 54.4574 Postage Courier Shipping General Cost Inflation 4,000 3,000 3,180 3,323 3,423 3,525 3,631 3,740 3,852 3,968 4,087 4,210 54.4582 R&M Other Services General Cost Inflation - 500 530 554 570 588 605 623 642 661 681 702 54.4596 Telephone Cell Pagers General Cost Inflation 500 250 265 277 285 294 303 312 321 331 341 351 54.4635 Insurance Premiums & Claims General Cost Inflation 999 1,245 1,320 1,379 1,420 1,463 1,507 1,552 1,599 1,647 1,696 1,747 [Extra]General Cost Inflation - - - - - - - - - - - - [Extra]General Cost Inflation - - - - - - - - - - - - Operating Cost Savings Electricity General Cost Inflation -$ -$ (69,960)$ (73,108)$ (75,301)$ (77,560)$ (79,887)$ (82,284)$ (84,752)$ (87,295)$ (89,914)$ (92,611)$ Clean Screens General Cost Inflation - - (55,115) (57,595) (59,323) (61,103) (62,936) (64,824) (66,769) (68,772) (70,835) (72,960) Clean Sand Traps General Cost Inflation - - (60,000) (62,700) (64,581) (66,518) (68,514) (70,569) (72,686) (74,867) (77,113) (79,426) Clean Clarifier General Cost Inflation - - (60,000) (62,700) (64,581) (66,518) (68,514) (70,569) (72,686) (74,867) (77,113) (79,426) Skimming Grease General Cost Inflation - - (18,615) (19,453) (20,036) (20,637) (21,256) (21,894) (22,551) (23,228) (23,924) (24,642) Grease Trap Cleaning General Cost Inflation - - (7,000) (7,315) (7,534) (7,760) (7,993) (8,233) (8,480) (8,734) (8,997) (9,266) Grit Pump Maint General Cost Inflation - - (1,000) (1,045) (1,076) (1,109) (1,142) (1,176) (1,211) (1,248) (1,285) (1,324) Screen Maint General Cost Inflation - - (7,000) (7,315) (7,534) (7,760) (7,993) (8,233) (8,480) (8,734) (8,997) (9,266) Screw Press Maint General Cost Inflation - - (500) (523) (538) (554) (571) (588) (606) (624) (643) (662) Dry Bed Turning/Load Out General Cost Inflation - - (36,683) (38,334) (39,484) (40,668) (41,888) (43,145) (44,439) (45,772) (47,146) (48,560) Waste Disposal General Cost Inflation - - (40,000) (41,800) (43,054) (44,346) (45,676) (47,046) (48,458) (49,911) (51,409) (52,951) Solids Tank Pump Maint General Cost Inflation - - (1,200) (1,254) (1,292) (1,330) (1,370) (1,411) (1,454) (1,497) (1,542) (1,589) Pressure Washer Maint General Cost Inflation - - (5,000) (5,225) (5,382) (5,543) (5,709) (5,881) (6,057) (6,239) (6,426) (6,619) Building Maint General Cost Inflation - - (6,000) (6,270) (6,458) (6,652) (6,851) (7,057) (7,269) (7,487) (7,711) (7,943) Burnham Treatment Adjusted Treatment Fee Calculated -$ -$ 13,806,000$ 14,427,270$ 14,860,088$ 15,305,891$ 15,765,067$ 16,238,019$ 16,725,160$ 17,226,915$ 17,743,722$ 18,276,034$ Electricity General Cost Inflation - - 74,996 78,371 80,722 83,144 85,638 88,207 90,853 93,579 96,386 99,278 Purchased Natural Gas General Cost Inflation - - 550,002 574,752 591,995 609,754 628,047 646,889 666,295 686,284 706,873 728,079 Solid waste disposal General Cost Inflation - - 735,004 768,079 791,122 814,855 839,301 864,480 890,414 917,127 944,641 972,980 Consumables General Cost Inflation - - 419,004 437,859 450,995 464,525 478,461 492,814 507,599 522,827 538,512 554,667 Yes Major Maintenance Expenses General Cost Inflation - - 345,000 360,525 371,341 382,481 393,955 405,774 417,947 430,486 443,400 456,702 Taxes General Cost Inflation - - - - - - - - - - - - Burham Admin Costs General Cost Inflation - - 212,401 221,959 228,617 235,476 242,540 249,816 257,311 265,030 272,981 281,171 RNG Credit Incl. in Treatment Fee General Cost Inflation - - 4,589,453 4,795,979 4,939,858 5,088,054 5,240,696 5,397,916 5,559,854 5,726,650 5,898,449 6,075,402 Total RNG Credit General Cost Inflation - - (6,480,000) (6,771,600) (6,974,748) (7,183,990) (7,399,510) (7,621,495) (7,850,140) (8,085,645) (8,328,214) (8,578,060) [Extra]General Cost Inflation - - - - - - - - - - - - Total Cash O&M Expenditures 3,070,926$ 3,634,005$ 17,706,850$ 18,481,439$ 19,021,069$ 19,576,888$ 20,149,382$ 20,739,050$ 21,346,409$ 21,971,988$ 22,616,334$ 23,280,011$ 1 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Depreciation Expense in 2021 420,928$ Depreciation Expense Last year's plus annual additions from CIP -$ 2,500,561$ 3,225,336$ 3,417,799$ 3,417,799$ 3,417,799$ 3,417,799$ 3,846,710$ 3,846,710$ 3,846,710$ 3,846,710$ 3,846,710$ debt principal payments (1,305,642) (3,498,013) (3,768,830) (3,542,967) (3,626,112) (3,564,598) (3,644,231) (3,638,790) (3,732,187) (3,822,418) (3,919,560) (4,023,692) System Reinvestment Funding -$ -$ -$ -$ -$ -$ -$ 207,920$ 114,523$ 24,292$ -$ -$ TOTAL EXPENSES 3,070,926$ 6,134,566$ 20,932,186$ 21,899,238$ 22,438,868$ 22,994,687$ 23,567,181$ 24,585,760$ 25,193,119$ 25,818,698$ 26,463,045$ 27,126,722$ 2,336,407$ 14.47% 13,806,000$ 16,142,407$ 2022 Expenses from Actual/Budget Doc 34,896,919$ 3,834,005$ Expenses from O&M 3,070,926 3,634,005 Difference 31,825,993 200,000 Less CIP Projects (33,422,936) Less Debt service (3,827,314) Less Estimated fund balance 5,424,257 Fed Indirect DOC- Dept of Commerce (Capital) (EDA)- Local Grant- (Capital Contributions) (Proprietary)- Reconcile?- Depreciation Expense 11/27/2024 2:47 PM Pa g e 3 6 7 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 11/27/2024 2:47 PM Pa g e 3 6 8 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 11/27/2024 2:47 PM Pa g e 3 6 9 o f 4 6 4 City of Pasco PWRF Rate Study & COSA COD Adjustment COD Adjustment - Year 1 2024 COD Adjustment - Annual 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 Base Treatment Fee ($/Month)1,125,000$ Adjusted Treatment Fee - Prior Year ($/Month)1,150,500$ 1,202,273$ 1,238,341$ 1,275,491$ 1,313,756$ 1,353,168$ 1,393,763$ 1,435,576$ 1,478,644$ 1,523,003$ 1,568,693$ 1,615,754$ 1,664,226$ 1,714,153$ 1,765,578$ 1,818,545$ 1,873,101$ 1,929,294$ 1,987,173$ 2,046,788$ 2,108,192$ 2,171,438$ 2,236,581$ 2,303,678$ 2,372,789$ 2,443,972$ 2,517,292$ 2,592,810$ 2,670,595$ Adjustment - Total Facility Capital Costs Adjustment - Total Volume Total Facility Capital Costs (Base)132,000,000$ Total Volume MG (Base)1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Total Facility Capital Costs (Actual)128,700,000$ Total Volume MG (Actual)1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Adjustment Amount (per $MM)9,000$ Adjustment Amount (%)0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03% Adjustment Amount Actual (27,000)$ Adjustment Amount Actual -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment - Weighted Average Cost of Debt Adjustment - Consumer Price Index 4.50%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% Weighted Average Cost of Debt (Base)6.5%Consumer Price Index (December) Weighted Average Cost of Debt (Actual)7.5%Consumer Price Index (COD Month) Adjustment Amount (per 10 bps)5,250$ Adjustment Amount Actual 51,773$ 36,068$ 37,150$ 38,265$ 39,413$ 40,595$ 41,813$ 43,067$ 44,359$ 45,690$ 47,061$ 48,473$ 49,927$ 51,425$ 52,967$ 54,556$ 56,193$ 57,879$ 59,615$ 61,404$ 63,246$ 65,143$ 67,097$ 69,110$ 71,184$ 73,319$ 75,519$ 77,784$ 80,118$ Adjustment Amount Actual 52,500$ Total Adjusted Treatment Fee 1,202,273$ 1,238,341$ 1,275,491$ 1,313,756$ 1,353,168$ 1,393,763$ 1,435,576$ 1,478,644$ 1,523,003$ 1,568,693$ 1,615,754$ 1,664,226$ 1,714,153$ 1,765,578$ 1,818,545$ 1,873,101$ 1,929,294$ 1,987,173$ 2,046,788$ 2,108,192$ 2,171,438$ 2,236,581$ 2,303,678$ 2,372,789$ 2,443,972$ 2,517,292$ 2,592,810$ 2,670,595$ 2,750,713$ Adjustment - Loan to Value Loan-to-Value (Base)80.0%1,150,023 Loan-to-Value (Actual)80.0%52,250$ Adjustment Amount (per 1%)12,750$ Adjustment Amount Actual -$ Adjustment - Consumer Price Index Consumer Price Index (April 2022)1 Consumer Price Index (COD Month)1 Adjustment Amount Actual -$ Total Adjusted Treatment Fee - Year 1 1,150,500$ FCS GROUP (425) 867-1802 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) COD Adj Page 10 of 47 Pa g e 3 7 0 o f 4 6 4 City of Pasco PWRF Rate Study & COSA COD Adjustment Processor Flow Forecast (MG)Growth Factor 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Pasco Processing Pasco Processing Growth 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 435 Freeze Pack Freeze Pack Growth 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 Twin City Foods Twin City Foods Growth 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 Reser's New Plant Reser's New Plant Growth 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 Simplot Simplot Growth 255 255 255 255 255 255 255 255 255 255 255 255 255 255 255 255 255 255 255 Grimmway Grimmway Growth 254 254 254 254 254 254 254 254 254 254 254 254 254 254 254 254 254 254 254 Darigold WW Darigold WW Growth 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256 256 Total Adjusted Treatment Fee - - 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 FCS GROUP (425) 867-1802 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Flow Forecast Page 11 of 47 Pa g e 3 7 1 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Existing Debt Input 1,149,024 1,436,743 1,232,980 808,432 810,775 662,613 664,262 - - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 TOTAL LOANS Total Annual Interest Payment 696,247$ 670,365$ 1,322,945$ 1,150,605$ 1,097,874$ 1,043,994$ 987,916$ 929,819$ 899,227$ 866,760$ 832,320$ 795,769$ 756,806$ 714,206$ 669,006$ 619,470$ 567,707$ 513,266$ 454,566$ 393,110$ 327,090$ Total Principal Payment 1,305,642 1,619,215 1,658,685 1,404,887 1,459,715 1,369,499 1,420,039 815,000 850,000 880,000 915,000 955,000 990,000 1,035,000 1,080,000 1,125,000 1,180,000 1,235,000 1,290,000 1,355,000 1,420,000 Total Annual Payment 2,001,888$ 2,289,580$ 2,981,630$ 2,555,492$ 2,557,590$ 2,413,494$ 2,407,956$ 1,744,819$ 1,749,227$ 1,746,760$ 1,747,320$ 1,750,769$ 1,746,806$ 1,749,206$ 1,749,006$ 1,744,470$ 1,747,707$ 1,748,266$ 1,744,566$ 1,748,110$ 1,747,090$ 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2013 T Revenue Bond - revised with refunding totals Annual Interest Payment 189,046$ 168,638$ 134,875$ 94,602$ 71,945$ 48,984$ 25,230$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 505,000 525,000 355,000 395,000 420,000 445,000 470,000 - - - - - - - - - - - - - - Total Annual Payment 694,046$ 693,638$ 489,875$ 489,602$ 491,945$ 493,984$ 495,230$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Use of Debt reserve for Debt Service - - - - - - - - - - - - - - - - - - - - - 2007 & 2008 Special Assess Annual Interest Payment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 90,200 90,200 90,200 90,200 90,200 - - - - - - - - - - - - - - - - Total Annual Payment 90,200$ 90,200$ 90,200$ 90,200$ 90,200$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Use of Debt reserve for Debt Service - - - - - - - - - - - - - - - - - - - - - 1994/199B Original Debt Annual Interest Payment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 60,000 60,000 60,000 60,000 60,000 - - - - - - - - - - - - - - - - Total Annual Payment 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Use of Debt reserve for Debt Service - - - - - - - - - - - - - - - - - - - - - 2020 Revenue Bond Annual Interest Payment 472,865$ 467,837$ 462,270$ 455,769$ 448,592$ 440,698$ 432,195$ 422,913$ 412,980$ 402,596$ 391,526$ 379,750$ 367,115$ 353,729$ 339,479$ 322,628$ 305,287$ 287,291$ 268,804$ 249,663$ 228,657$ Annual Principal Payment 380,000 385,000 390,000 395,000 405,000 415,000 420,000 430,000 440,000 450,000 460,000 475,000 485,000 500,000 515,000 530,000 550,000 565,000 585,000 605,000 625,000 Total Annual Payment 852,865$ 852,837$ 852,270$ 850,769$ 853,592$ 855,698$ 852,195$ 852,913$ 852,980$ 852,596$ 851,526$ 854,750$ 852,115$ 853,729$ 854,479$ 852,628$ 855,287$ 852,291$ 853,804$ 854,663$ 853,657$ Use of Debt reserve for Debt Service - - - - - - - - - - - - - - - - - - - - - 2023 Revenue Bond Annual Interest Payment -$ -$ 696,380$ 581,291$ 563,223$ 545,182$ 526,499$ 506,906$ 486,247$ 464,164$ 440,794$ 416,019$ 389,691$ 360,477$ 329,527$ 296,842$ 262,421$ 225,975$ 185,762$ 143,448$ 98,433$ Annual Principal Payment - - 200,000 315,000 330,000 350,000 365,000 385,000 410,000 430,000 455,000 480,000 505,000 535,000 565,000 595,000 630,000 670,000 705,000 750,000 795,000 Total Annual Payment -$ -$ 896,380$ 896,291$ 893,223$ 895,182$ 891,499$ 891,906$ 896,247$ 894,164$ 895,794$ 896,019$ 894,691$ 895,477$ 894,527$ 891,842$ 892,421$ 895,975$ 890,762$ 893,448$ 893,433$ Use of Debt Reserve for Debt Service - - - - - - - - - - - - - - - - - - - - - TOTAL REVENUE BONDS Annual Interest Payment 661,911$ 636,475$ 1,293,525$ 1,131,663$ 1,083,760$ 1,034,864$ 983,924$ 929,819$ 899,227$ 866,760$ 832,320$ 795,769$ 756,806$ 714,206$ 669,006$ 619,470$ 567,707$ 513,266$ 454,566$ 393,110$ 327,090$ Annual Principal Payment 1,035,200 1,060,200 1,095,200 1,255,200 1,305,200 1,210,000 1,255,000 815,000 850,000 880,000 915,000 955,000 990,000 1,035,000 1,080,000 1,125,000 1,180,000 1,235,000 1,290,000 1,355,000 1,420,000 Total Annual Payment 1,697,111$ 1,696,675$ 2,388,725$ 2,386,863$ 2,388,960$ 2,244,864$ 2,238,924$ 1,744,819$ 1,749,227$ 1,746,760$ 1,747,320$ 1,750,769$ 1,746,806$ 1,749,206$ 1,749,006$ 1,744,470$ 1,747,707$ 1,748,266$ 1,744,566$ 1,748,110$ 1,747,090$ Use of Debt reserve for Debt Service - - - - - - - - - - - - - - - - - - - - - Annual Debt Reserve Target on Existing Revenue Bonds 2,388,960 2,388,960 2,388,960 2,388,960 2,388,960 2,244,864 2,238,924 1,750,769 1,750,769 1,750,769 1,750,769 1,750,769 1,749,206 1,749,206 1,749,006 1,748,266 1,748,266 1,748,266 1,748,110 1,748,110 1,747,090 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 PWB - Pre Construction PR 18-96103-065 Annual Interest Payment 1,797$ 5,740$ 5,740$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 134,351 418,535 418,535 - - - - - - - - - - - - - - - - - - Total Annual Payment 136,148$ 424,275$ 424,275$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL PWTF LOANS Annual Interest Payment 1,797$ 5,740$ 5,740$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 134,351 418,535 418,535 - - - - - - - - - - - - - - - - - - Total Annual Payment 136,148$ 424,275$ 424,275$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2018 Haeific Loan Annual Interest Payment 32,539$ 28,150$ 23,680$ 18,943$ 14,114$ 9,130$ 3,993$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 136,090 140,480 144,950 149,687 154,515 159,499 165,039 - - - - - - - - - - - - - - Total Annual Payment 168,630$ 168,630$ 168,630$ 168,630$ 168,630$ 168,630$ 169,032$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL OTHER LOANS Annual Interest Payment 32,539$ 28,150$ 23,680$ 18,943$ 14,114$ 9,130$ 3,993$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Principal Payment 136,090 140,480 144,950 149,687 154,515 159,499 165,039 - - - - - - - - - - - - - - Total Annual Payment 168,630$ 168,630$ 168,630$ 168,630$ 168,630$ 168,630$ 169,032$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Existing Debt Service - Revenue Bonds Existing Debt Service - PWTF Loans Existing Debt Service - Other Loans Total Existing Debt Service 11/27/2024 2:47 PM Pa g e 3 7 2 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Revenue Bonds 2013 T Revenue Bond - revised with refunding totals 2007 & 2008 Special Assess 1994/199B Original Debt 2020 Revenue Bond Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year 2022 189,046$ 505,000$ 694,046$ 2022 90,200$ 90,200$ 2022 60,000$ 60,000$ 2022 472,865$ 380,000$ 852,865$ 2022 2023 168,638 525,000 693,638 2023 90,200 90,200 2023 60,000 60,000 2023 467,837 385,000 852,837 2023 2024 134,875 355,000 489,875 2024 90,200 90,200 2024 60,000 60,000 2024 462,270 390,000 852,270 2024 2025 94,602 395,000 489,602 2025 90,200 90,200 2025 60,000 60,000 2025 455,769 395,000 850,769 2025 2026 71,945 420,000 491,945 2026 90,200 90,200 2026 60,000 60,000 2026 448,592 405,000 853,592 2026 2027 48,984 445,000 493,984 2027 - 2027 - 2027 440,698 415,000 855,698 2027 2028 25,230 470,000 495,230 2028 - 2028 - 2028 432,195 420,000 852,195 2028 2029 - 2029 - 2029 - 2029 422,913 430,000 852,913 2029 2030 - 2030 - 2030 - 2030 412,980 440,000 852,980 2030 2031 - 2031 - 2031 - 2031 402,596 450,000 852,596 2031 2032 - 2032 - 2032 - 2032 391,526 460,000 851,526 2032 2033 - 2033 - 2033 - 2033 379,750 475,000 854,750 2033 2034 - 2034 - 2034 - 2034 367,115 485,000 852,115 2034 2035 - 2035 - 2035 - 2035 353,729 500,000 853,729 2035 2036 - 2036 - 2036 - 2036 339,479 515,000 854,479 2036 2037 - 2037 - 2037 - 2037 322,628 530,000 852,628 2037 2038 - 2038 - 2038 - 2038 305,287 550,000 855,287 2038 2039 - 2039 - 2039 - 2039 287,291 565,000 852,291 2039 2040 - 2040 - 2040 - 2040 268,804 585,000 853,804 2040 2041 - 2041 - 2041 - 2041 249,663 605,000 854,663 2041 2042 - 2042 - 2042 - 2042 228,657 625,000 853,657 2042 Total 733,320$ 3,115,000$ 3,848,320$ Total -$ 451,000$ 451,000$ Total -$ 300,000$ 300,000$ Total 7,912,643$ 10,005,000$ 17,917,643$ Total PWTF Loans PWB - Pre Construction PR 18-96103-065 PWTF LOAN 2 PWTF LOAN 3 PWTF LOAN 4 Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year 2022 1,797$ 134,351$ 136,148$ 2022 -$ 2022 -$ 2022 -$ 2022 2023 5,740 418,535 424,275 2023 - 2023 - 2023 - 2023 2024 5,740 418,535 424,275 2024 - 2024 - 2024 - 2024 2025 - 2025 - 2025 - 2025 - 2025 2026 - 2026 - 2026 - 2026 - 2026 2027 - 2027 - 2027 - 2027 - 2027 2028 - 2028 - 2028 - 2028 - 2028 2029 - 2029 - 2029 - 2029 - 2029 2030 - 2030 - 2030 - 2030 - 2030 2031 - 2031 - 2031 - 2031 - 2031 2032 - 2032 - 2032 - 2032 - 2032 2033 - 2033 - 2033 - 2033 - 2033 2034 - 2034 - 2034 - 2034 - 2034 2035 - 2035 - 2035 - 2035 - 2035 2036 - 2036 - 2036 - 2036 - 2036 2037 - 2037 - 2037 - 2037 - 2037 2038 - 2038 - 2038 - 2038 - 2038 2039 - 2039 - 2039 - 2039 - 2039 2040 2040 2040 2040 2040 2041 - 2041 - 2041 - 2041 - 2041 2042 - 2042 - 2042 - 2042 - 2042 Total 13,276$ 971,421$ 984,698$ Total -$ -$ -$ Total -$ -$ -$ Total -$ -$ -$ Total Other Loans 2018 Haeific Loan OTHER LOANS 2 OTHER LOANS 3 OTHER LOANS 4 Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year 2022 32,539$ 136,090$ 168,630$ 2022 -$ 2022 -$ 2022 -$ 2022 2023 28,150 140,480 168,630 2023 - 2023 - 2023 - 2023 2024 23,680 144,950 168,630 2024 - 2024 - 2024 - 2024 2025 18,943 149,687 168,630 2025 - 2025 - 2025 - 2025 2026 14,114 154,515 168,630 2026 - 2026 - 2026 - 2026 2027 9,130 159,499 168,630 2027 - 2027 - 2027 - 2027 2028 3,993 165,039 169,032 2028 - 2028 - 2028 - 2028 2029 - 2029 - 2029 - 2029 - 2029 2030 - 2030 - 2030 - 2030 - 2030 2031 - 2031 - 2031 - 2031 - 2031 2032 - 2032 - 2032 - 2032 - 2032 2033 - 2033 - 2033 - 2033 - 2033 2034 - 2034 - 2034 - 2034 - 2034 2035 - 2035 - 2035 - 2035 - 2035 2036 - 2036 - 2036 - 2036 - 2036 2037 - 2037 - 2037 - 2037 - 2037 2038 - 2038 - 2038 - 2038 - 2038 2039 - 2039 - 2039 - 2039 - 2039 2040 - 2040 - 2040 - 2040 - 2040 2041 - 2041 2041 2041 2041 2042 - 2042 - 2042 - 2042 - 2042 Total 130,549$ 1,050,261$ 1,180,810$ Total -$ -$ -$ Total -$ -$ -$ Total -$ -$ -$ Total 11/27/2024 2:47 PM Pa g e 3 7 3 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) - . 11/27/2024 2:47 PM Pa g e 3 7 4 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 2023 Revenue Bond REVENUE BOND 6 REVENUE BOND 7 REVENUE BOND 8 REVENUE BOND 9 REVENUE BOND NO. 10 Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total Year Interest Principal Total -$ 2022 -$ 2022 -$ 2022 -$ 2022 -$ 2022 -$ - 2023 - 2023 - 2023 - 2023 - 2023 - 696,380 200,000 896,380 2024 - 2024 - 2024 - 2024 - 2024 - 581,291 315,000 896,291 2025 - 2025 - 2025 - 2025 - 2025 - 563,223 330,000 893,223 2026 - 2026 - 2026 - 2026 - 2026 - 545,182 350,000 895,182 2027 - 2027 - 2027 - 2027 - 2027 - 526,499 365,000 891,499 2028 - 2028 - 2028 - 2028 - 2028 - 506,906 385,000 891,906 2029 - 2029 - 2029 - 2029 - 2029 - 486,247 410,000 896,247 2030 - 2030 - 2030 - 2030 - 2030 - 464,164 430,000 894,164 2031 - 2031 - 2031 - 2031 - 2031 - 440,794 455,000 895,794 2032 - 2032 - 2032 - 2032 - 2032 - 416,019 480,000 896,019 2033 - 2033 - 2033 - 2033 - 2033 - 389,691 505,000 894,691 2034 - 2034 - 2034 - 2034 - 2034 - 360,477 535,000 895,477 2035 - 2035 - 2035 - 2035 - 2035 - 329,527 565,000 894,527 2036 - 2036 - 2036 - 2036 - 2036 - 296,842 595,000 891,842 2037 - 2037 - 2037 - 2037 - 2037 - 262,421 630,000 892,421 2038 - 2038 - 2038 - 2038 - 2038 - 225,975 670,000 895,975 2039 - 2039 - 2039 - 2039 - 2039 - 185,762 705,000 890,762 2040 - 2040 - 2040 - 2040 - 2040 - 143,448 750,000 893,448 2041 - 2041 2041 2041 2041 98,433 795,000 893,433 2042 - 2042 - 2042 - 2042 - 2042 - 7,519,278$ 9,470,000$ 16,989,278$ Total -$ -$ -$ Total -$ -$ -$ Total -$ -$ -$ Total -$ -$ -$ Total -$ -$ -$ PWTF LOAN 5 Interest Principal Total -$ - - - - - - - - - - - - - - - - - - - -$ -$ -$ OTHER LOANS 5 Interest Principal Total -$ - - - - - - - - - - - - - - - - - - - -$ -$ -$ 11/27/2024 2:47 PM Pa g e 3 7 5 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Capital Improvement Program Project Costs and O&M Impacts in Year: 2023 TOTAL FORECASTED PROJECT COSTS No Description 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Useful Life (Years) TOTAL ESCALATED COSTS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Pasco Processing Twin City Foods Reser's Fine Foods Freeze Pack Simplot Grimmway Darigold WW Pasco Processing Twin City Foods Reser's Fine Foods Freeze Pack Simplot Grimmway Darigold WW Allocation Factor Check 40 1 Enterprise Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - Foster Wells PS Project 250,000 40 1 Enterprise Fund 265,000 - - 265,000 - - - - - - - - 100.00%100.00%100.00%120,417 143,938 645 - Customer Accounts Total Volume (MG)Max Flow (MGY)Average Flow (MGY)BOD (lbs/year)TSS (lbs/year)TN (lbs/day)40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 - Reser 1 435.00 1.19 2.50 14,040.00 42,500.00 4,700.00 Pasco ProcessingBurnham Work Acceleration Agreement 6,300,000 40 1 Enterprise Fund 6,300,000 - 6,300,000 - - - - - - - - - 6,300,000 - Pasco Processing 1 25.00 0.07 0.11 320.00 225.00 300.00 Freeze Pack401Enterprise Fund - - - - - - - - - - - - TCF 1 225.00 0.62 1.80 13,580.00 50,800.00 2,600.00 Twin City Foods401Enterprise Fund - - - - - - - - - - - - 0 0 0 - Freeze Pack 1 150.00 0.35 0.41 7,310.00 10,800.00 2,500.00 Reser's New PlantSimplot Discharge to Columbia East PS - 40 1 Enterprise Fund - - - - - - - - - - - - 100.00%0 - Simplot 1 255.00 0.70 1.25 14,830.00 20,000.00 3,100.00 Simplot401Enterprise Fund - - - - - - - - - - - - 0 - Grimmway 1 254.00 0.70 1.65 5,840.00 13,770.00 2,100.00 Grimmway401Enterprise Fund - - - - - - - - - - - - 0 - Lamb Weston 0 - - - - - - Darigold WW401Enterprise Fund - - - - - - - - - - - - - Total 6 1,344 4 8 55,920 138,095 15,300 IPS Discharge Piping 24 in. and 30 inch - 40 1 Enterprise Fund - - - - - - - - - - - - 100.00%100.00%100.00%100.00%100.00%100.00%0 0 0 0 0 0 0 - 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 0 - 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 - Customer Accounts Total Volume (MG) Max Flow (MGY) Average Flow (MGY) BOD (lbs/year) TSS (lbs/year) TN (lbs/day)Existing115 & 35 MG Pond Modifications and New Liners 13,761,209 40 1 Enterprise Fund 17,156,459 - - - - - - - 17,156,459 - - - 100.00%100.00%100.00%100.00%100.00%100.00%135,860 4,379,046 4,861,994 1,935,502 3,709,915 2,134,143 0 - Reser 14.3%27.19%27.48%29.21%24.10%30.17%18.80% 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 - Pasco Processing 14.3%1.56%1.62%1.29%0.55%0.16%1.20%New Storage Ponds (317 MG) - Phase 2 23,300,000 14,000,000 40 1 Enterprise Fund 38,140,000 - 23,300,000 14,840,000 - - - - - - - - 100.00%100.00%100.00%100.00%100.00%100.00%(38,140,000.00) TCF 14.3%14.06%14.32%21.03%23.31%36.06%10.40%PWRF Pretreatment Improvements (Phase 3) - AD/SBR/RNG 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 - Freeze Pack 14.3%9.38%8.08%4.79%12.55%7.67%10.00% 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 0 - Simplot 14.3%15.94%16.17%14.60%25.46%14.20%12.40% 40 1 Enterprise Fund - - - - - - - - - - - - - Grimmway 14.3%15.88%16.17%19.28%10.03%9.77%8.40%40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 - Lamb Weston 0.0%0.00%0.00%0.00%0.00%0.00%0.00%New Office/Lab Building (42' x 48' CMU/metal roof)100,000 600,000 40 1 Enterprise Fund 770,620 - - 106,000 664,620 - - - - - - - 9,903 162,046 225,064 36,911 112,532 148,542 0 (75,621.59) Total 85.71%84.00%83.83%90.19%96.00%98.02%61.20%40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 0 - Replace Circle 7 Pivot - 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 0 - Replace Circle 5 Pivot 350,000 40 1 Enterprise Fund 387,695 - - - 387,695 - - - - - - - (387,695.00) 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 0 - PWRF Pretreatment Improvements (Phase 1) - Potable Water and Electrical Upgrades 3,700,000 40 1 Enterprise Fund 3,700,000 - 3,700,000 - - - - - - - - - 57,843 691,533 1,115,165 478,535 783,733 573,191 0 - Weighted AllocationsPWRF Irrigation System - Farm Upgrades - 13,000,000 6,000,000 40 1 Enterprise Fund 20,426,200 - - 13,780,000 6,646,200 - - - - - - - 262,486 4,295,229 5,965,596 978,358 2,982,798 3,937,293 0 (2,004,440.19) Reser 28.34%BOD 50%Reser 28.64%BOD 40%Reser 30.14%BOD 25% 40 1 Enterprise Fund - - - - - - - - - - - - 0 0 0 0 0 0 0 - Pasco Processing 0.79%Flow 25%Pasco Processing 1.22%Flow 10%Pasco Processing 1.56%Flow 50%PWRF Irrigation System - Beus Property 350,000 40 1 Enterprise Fund 350,000 - 350,000 - - - - - - - - - 5,472 65,415 105,489 45,267 74,137 54,221 0 - TCF 25.52%Nitrogen 0%TCF 21.86%Nitrogen 40%TCF 18.69%Nitrogen 25%PWRF Land Acquisition and Irrigation System 1,000,000 40 1 Enterprise Fund 1,000,000 - 1,000,000 - - - - - - - - - 15,633 186,901 301,396 129,334 211,820 154,916 0 - Freeze Pack 11.28%TSS 25%Freeze Pack 13.66%TSS 10%Freeze Pack 12.93%TSS 0%PWRF Irrigation System - USBR Property - 40 1 Enterprise Fund - - - - - - - - - - - - Simplot 21.62%Simplot 22.06%Simplot 21.18% 40 1 Enterprise Fund - - - - - - - - - - - - 0 Grimmway 12.44%Grimmway 12.55%Grimmway 15.49% 40 1 Enterprise Fund - - - - - - - - - - - - 0 Lamb Weston 0.00%Lamb Weston 0.00%Lamb Weston 0.00%Economic Development Fund Projects 40 1 Enterprise Fund - - - - - - - - - - - - Total 100.00%Total 100.00%Total 100.00% PWRF Irrigation System - Beus Property 40 1 Enterprise Fund - - - - - - - - - - - - PWRF Pretreatment Improvements (Phase 2) Winter Storage 360,000 40 1 Enterprise Fund 360,000 - 360,000 - - - - - - - - - PWRF Land Acquisition and Irrigation System 13,250,000 40 1 Enterprise Fund 13,250,000 - 13,250,000 - - - - - - - - - PWRF Irrigation System - USBR Property 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - 40 1 Enterprise Fund - - - - - - - - - - - - Total 607,613$ 9,924,108$ 12,575,348$ 3,603,906$ 7,874,935$ 7,002,307$ 6,300,000$ 47,888,217$ Total Capital Projects 48,260,000$ 27,350,000$ 6,950,000$ -$ -$ -$ 13,761,209$ -$ -$ -$ 102,105,974$ -$ 48,260,000$ 28,991,000$ 7,698,515$ -$ -$ -$ 17,156,459$ -$ -$ -$ Allocation 1.27%20.72%26.26%7.53%16.44%14.62%13.16%100.00% Total Upgrade/Expansion Projects 24,130,000 13,675,000 3,475,000 - - - 6,880,605 - - - 51,052,987 - 24,130,000 14,495,500 3,849,258 - - - 8,578,229 - - - Total R&R Projects 24,130,000 13,675,000 3,475,000 - - - 6,880,605 - - - 51,052,987 - 24,130,000 14,495,500 3,849,258 - - - 8,578,229 - - - Projects by Grants / Developer Donations - - - - - - - - - - - - Projects by Enterprise Fund 102,105,974 - 48,260,000 28,991,000 7,698,515 - - - 17,156,459 - - - Annual CCI Factor 1.00 1.06 1.12 1.17 1.21 1.25 1.28 1.32 1.36 1.40 1.44 Data Range Inflation Adjusted Factor 94.34% 100.00% 106.00% 110.77% 114.09% 117.52% 121.04% 124.67% 128.41% 132.27% 136.23%Year Inflated 2022 2022 -$ 2028 36,689,515 0 0 0 17,156,459 0 0 0 2023 48,260,000 2024 28,991,000 2025 7,698,515 2026 - 2027 - 2028 - City of Pasco 2029 17,156,459 PWRF Rate Study & COSA 2030 - Depreciation Expense Impact of CIP 2031 - 2032 - NEW ANNUAL DEPRECIATION EXPENSE 2033 - Description 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2034 - 2035 - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2036 - Foster Wells PS Project - - 6,625 - - - - - - - - 2037 - # - - - - - - - - - - - 2038 - Burnham Work Acceleration Agreement - 157,500 - - - - - - - - - 2039 - # - - - - - - - - - - - 2040 - # - - - - - - - - - - - 2041 - Simplot Discharge to Columbia East PS - - - - - - - - - - - 2042 - 384,000 # - - - - - - - - - - - Total 102,105,974$ # - - - - - - - - - - - # - - - - - - - - - - - IPS Discharge Piping 24 in. and 30 inch - - - - - - - - - - - # - - - - - - - - - - - # - - - - - - - - - - - Existing115 & 35 MG Pond Modifications and New Liners- - - - - - - 428,911 - - - # - - - - - - - - - - - New Storage Ponds (317 MG) - Phase 2 - 582,500 371,000 - - - - - - - - Start PWRF Pretreatment Improvements (Phase 3) - AD/SBR/RNG- - - - - - - - - - - Move # - - - - - - - - - - - # - - - - - - - - - - - # - - - - - - - - - - - New Office/Lab Building (42' x 48' CMU/metal roof)- - 2,650 16,616 - - - - - - - # - - - - - - - - - - - Replace Circle 7 Pivot - - - - - - - - - - - Replace Circle 5 Pivot - - - 9,692 - - - - - - - # - - - - - - - - - - - PWRF Pretreatment Improvements (Phase 1) - Potable Water and Electrical Upgrades- 92,500 - - - - - - - - - PWRF Irrigation System - Farm Upgrades - - 344,500 166,155 - - - - - - - #- - - - - - - - - - - PWRF Irrigation System - Beus Property - 8,750 - - - - - - - - - PWRF Land Acquisition and Irrigation System - 25,000 - - - - - - - - - PWRF Irrigation System - USBR Property - - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - Economic Development Fund Projects - - - - - - - - - - - PWRF Irrigation System - Beus Property - - - - - - - - - - - PWRF Pretreatment Improvements (Phase 2) Winter Storage- 9,000 - - - - - - - - - PWRF Land Acquisition and Irrigation System - 331,250 - - - - - - - - - PWRF Irrigation System - USBR Property - - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - #- - - - - - - - - - - TOTAL -$ 1,206,500$ 724,775$ 192,463$ -$ -$ -$ 428,911$ -$ -$ -$ Reference (Do not delete) Customer CIP Allocation Design Criteria Design Criteria Start Year End Year Specific Funding Source 1-Enterprise Fund, 2-Grants & Developer Donations $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2022 2023 2024 2025 2026 2027 2028 Capital Summary Capital Improvement Program 11/27/2024 2:47 PM Pa g e 3 7 6 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Capital Funding Analysis 2022 - 2042 2022 2023 2024 2025 2026 2027 2028 TOTAL CAPITAL PROJECTS Improvement Upgrades & Expansions -$ 24,130,000$ 14,495,500$ 3,849,258$ -$ -$ -$ 51,052,987$ Repairs and Replacements - 24,130,000 14,495,500 3,849,258 - - - 51,052,987 TOTAL CAPITAL EXPENDITURES -$ 48,260,000$ 28,991,000$ 7,698,515$ -$ -$ -$ 102,105,974$ 2022 2023 2024 2025 2026 2027 2028 TOTAL Additional Proceeds (Costs) -$ 23,810,000$ 9,400,000$ 387,695$ -$ -$ -$ 33,597,695$ Project Specific CIAC - - - - - - - - Project to be Funded -$ 24,450,000$ 19,591,000$ 7,310,820$ -$ -$ -$ 68,508,279$ OTHER FUNDING SOURCES Other Outside Sources -$ -$ -$ -$ -$ -$ -$ -$ Rate Funded System Reinvestment - - - - - - - - PWTF Loans - - - - - - - - Other Loans - 41,967,352 5,000,000 - - - - 46,967,352 Revenue Bond Proceeds - - - - - - - 17,150,000 TOTAL CAPITAL RESOURCES -$ 65,777,352$ 14,400,000$ 387,695$ -$ -$ -$ 97,715,047$ Info: Working Capital Contingency Deficit - - - (2,502,012) (2,501,353) (2,500,688) (2,500,016) - 2022 2023 2024 2025 2026 2027 2028 TOTAL REVENUE BONDS Amount to Fund -$ -$ -$ -$ -$ -$ -$ 17,150,000$ Issuance Costs - - - - - - - 188,512 Reserve Required - - - - - - - 1,512,667 Amount of Debt Issue -$ -$ -$ -$ -$ -$ -$ 18,851,179$ PWTF LOANS Amount to Fund -$ -$ -$ -$ -$ -$ -$ -$ OTHER LOANS Amount to Fund -$ 41,967,352$ 5,000,000$ -$ -$ -$ -$ 46,967,352$ Issuance Costs - 423,913 50,505 - - - - 474,418 Amount of Debt Issue -$ 42,391,265$ 5,050,505$ -$ -$ -$ -$ 47,441,770$ Summary of Expenditures Capital Financing Plan New Debt Computations 11/27/2024 2:47 PM Pa g e 3 7 7 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 2022 2023 2024 2025 2026 2027 2028 TOTAL EXISTING DEBT SERVICE Annual Interest Payments 696,247$ 670,365$ 1,322,945$ 1,150,605$ 1,097,874$ 1,043,994$ 987,916$ 16,309,067$ Annual Principal Payments 1,305,642 1,619,215 1,658,685 1,404,887 1,459,715 1,369,499 1,420,039 25,362,683 Total Debt Service Payments 2,001,888$ 2,289,580$ 2,981,630$ 2,555,492$ 2,557,590$ 2,413,494$ 2,407,956$ 41,671,750$ Revenue Bond Payments Only 1,697,111 1,696,675 2,388,725 2,386,863 2,388,960 2,244,864 2,238,924 39,506,242 NEW DEBT SERVICE Annual Interest Payments -$ 529,891$ 607,416$ 579,480$ 551,164$ 522,462$ 493,369$ 16,907,382$ Annual Principal Payments - 1,878,797 2,110,145 2,138,080 2,166,396 2,195,098 2,224,191 58,312,299 Total Debt Service Payments -$ 2,408,688$ 2,717,560$ 2,717,560$ 2,717,560$ 2,717,560$ 2,717,560$ 75,219,681$ Revenue Bond Payments Only - - - - - - - 21,177,343 TOTAL DEBT SERVICE PAYMENTS 2,001,888$ 4,698,268$ 5,699,190$ 5,273,053$ 5,275,150$ 5,131,054$ 5,125,516$ 116,891,431$ Total Interest Payments 696,247 1,200,256 1,930,361 1,730,086 1,649,038 1,566,457 1,481,285 33,216,449 Total Principal Payments 1,305,642 3,498,013 3,768,830 3,542,967 3,626,112 3,564,598 3,644,231 83,674,982 Total Revenue Bond Payments Only 1,697,111 1,696,675 2,388,725 2,386,863 2,388,960 2,244,864 2,238,924 60,683,585 2022 2023 2024 2025 2026 2027 2028 Revenue Bonds Total Interest Payments -$ -$ -$ -$ -$ -$ -$ Principal Payments - - - - - - - Total -$ -$ -$ -$ -$ -$ -$ Use of Debt Reserve for Debt Service -$ -$ -$ -$ -$ -$ -$ 2022 2023 2024 2025 2026 2027 2028 PWTF Loans Total Interest Payments -$ -$ -$ -$ -$ -$ -$ Principal Payments - - - - - - - Total -$ -$ -$ -$ -$ -$ -$ Debt Amortization Debt Amortization Debt Service Summary 11/27/2024 2:47 PM Pa g e 3 7 8 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 2022 2023 2024 2025 2026 2027 2028 ASSUMPTIONS Term (years)20 20 20 20 20 20 20 Interest Rate 1.25%1.25%2.00%1.25%1.25%1.25%1.25% Issuance Cost 1.00%1.00%1.00%1.00%1.00%1.00%1.00% OTHER LOANS 2022 Interest Payments -$ -$ -$ -$ -$ -$ -$ Principal Payments - - - - - - - Total -$ -$ -$ -$ -$ -$ -$ 2023 Interest Payments 529,891$ 506,406$ 482,627$ 458,552$ 434,175$ 409,493$ Principal Payments 1,878,797 1,902,282 1,926,061 1,950,137 1,974,513 1,999,195 Total 2,408,688$ 2,408,688$ 2,408,688$ 2,408,688$ 2,408,688$ 2,408,688$ 2024 Interest Payments 101,010$ 96,853$ 92,612$ 88,287$ 83,876$ Principal Payments 207,862 212,019 216,260 220,585 224,997 Total 308,872$ 308,872$ 308,872$ 308,872$ 308,872$ 2025 Interest Payments -$ -$ -$ -$ Principal Payments - - - - Total -$ -$ -$ -$ 2026 Interest Payments -$ -$ -$ Principal Payments - - - Total -$ -$ -$ 2027 Interest Payments -$ -$ Principal Payments - - Total -$ -$ 2028 Interest Payments -$ Principal Payments - Total -$ 2029 Interest Payments Principal Payments Total 2030 Interest Payments Principal Payments Total 2031 Interest Payments Principal Payments Total 2032 Interest Payments Principal Payments Total 2033 Interest Payments Principal Payments Total 2034 Interest Payments Principal Payments Total 2035 Interest Payments Principal Payments Total 2036 Interest Payments Principal Payments Total 2037 Interest Payments Principal Payments Total 2038 Interest Payments Principal Payments Total 2039 Interest Payments Principal Payments Total 2040 Interest Payments Principal Payments Total 2041 Interest Payments Principal Payments Total 2042 Interest Payments Principal Payments Total Other Loans Total Interest Payments -$ 529,891$ 607,416$ 579,480$ 551,164$ 522,462$ 493,369$ Principal Payments - 1,878,797 2,110,145 2,138,080 2,166,396 2,195,098 2,224,191 Total -$ 2,408,688$ 2,717,560$ 2,717,560$ 2,717,560$ 2,717,560$ 2,717,560$ Debt Amortization 11/27/2024 2:47 PM Pa g e 3 7 9 o f 4 6 4 City of Pasco PWRF Rate Study & COSA Revenue Requirements Analysis 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 EXPENSES Cash Operating Expenses (City Costs) 3,070,926$ 3,634,005$ 3,454,990$ 3,588,245$ 3,681,080$ 3,776,699$ 3,875,187$ 3,976,629$ 4,081,115$ 4,188,736$ 4,299,585$ Cash Operating Expenses (Burnham) - - 14,251,860 14,893,194 15,339,990 15,800,189 16,274,195 16,762,421 17,265,293 17,783,252 18,316,750 Existing Debt Service 2,001,888 2,289,580 2,981,630 2,555,492 2,557,590 2,413,494 2,407,956 1,744,819 1,749,227 1,746,760 1,747,320 New Debt Service - 2,408,688 2,717,560 2,717,560 2,717,560 2,717,560 2,717,560 4,230,228 4,230,228 4,230,228 4,230,228 Rate Funded System Reinvestment - - - - - - - - - - - Total Expenses 5,072,814$ 8,332,273$ 23,406,041$ 23,754,492$ 24,296,219$ 24,707,942$ 25,274,898$ 26,714,097$ 27,325,863$ 27,948,976$ 28,593,882$ REVENUES Rate Revenue 4,930,040$ 4,930,040$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ Other Non Rate Revenue - - - - - - - - - - - Capital Expansion Fee Revenue Towards Debt - - - - - - - - - - - Operating Fund & Debt Reserve Fund Interest Earnings 10,000 167,666 32,817 16,409 16,409 16,409 16,409 16,409 31,535 31,535 31,535 Total Revenue 4,940,040$ 5,097,706$ 5,832,817$ 5,816,409$ 5,816,409$ 5,816,409$ 5,816,409$ 5,816,409$ 5,831,535$ 5,831,535$ 5,831,535$ NET CASH FLOW (DEFICIENCY) (132,774)$ (3,234,567)$ (17,573,223)$ (17,938,083)$ (18,479,811)$ (18,891,534)$ (19,458,489)$ (20,897,688)$ (21,494,328)$ (22,117,440)$ (22,762,346)$ % of Rate Revenue 2.69% 65.61% 302.99% 309.28% 318.62% 325.72% 335.49% 360.30% 370.59% 381.34% 392.45% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 EXPENSES Cash Operating Expenses (Less City Tax and Capital Outlays) 2,721,926$ 3,285,005$ 17,213,850$ 17,988,439$ 18,528,069$ 19,083,888$ 19,656,382$ 20,246,050$ 20,853,409$ 21,478,988$ 22,123,334$ Revenue Bond Debt Service 1,697,111 1,696,675 2,388,725 2,386,863 2,388,960 2,244,864 2,238,924 3,257,486 3,261,894 3,259,427 3,259,987 Revenue Bond Coverage Requirement at 1.25 424,278 424,169 597,181 596,716 597,240 561,216 559,731 814,372 815,474 814,857 814,997 Total Expenses 4,843,314$ 5,405,849$ 20,199,757$ 20,972,017$ 21,514,269$ 21,889,968$ 22,455,036$ 24,317,908$ 24,930,776$ 25,553,272$ 26,198,318$ ALLOWABLE REVENUES Rate Revenue 4,930,040$ 4,930,040$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ Other Revenue - - - - - - - - - - - Capital Expansion Fee Revenue - - - - - - - - - - - Interest Earnings - All Funds 10,000 167,666 462,124 89,445 17,067 17,074 17,081 17,087 32,156 32,163 32,169 Total Revenue 4,940,040$ 5,097,706$ 6,262,124$ 5,889,445$ 5,817,067$ 5,817,074$ 5,817,081$ 5,817,087$ 5,832,156$ 5,832,163$ 5,832,169$ Coverage Realized (Existing Rates) 1.31 1.07 (4.58) (5.07) (5.32) (5.91) (6.18) (4.43) (4.61) (4.80) (5.00) COVERAGE SURPLUS (DEFICIENCY) 96,726$ (308,143)$ (13,937,632)$ (15,082,572)$ (15,697,202)$ (16,072,894)$ (16,637,955)$ (18,500,820)$ (19,098,620)$ (19,721,110)$ (20,366,149)$ 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Sufficiency Test Driving the Deficiency Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Maximum Revenue Deficiency (Surplus) 132,774$ 3,234,567$ 17,573,223$ 17,938,083$ 18,479,811$ 18,891,534$ 19,458,489$ 20,897,688$ 21,494,328$ 22,117,440$ 22,762,346$ plus: Additional (Reduction) Excise Tax - - - - - - - - - - - plus: Additional (Reduction) City Tax 12,334 300,479 1,632,485 1,666,379 1,716,704 1,754,951 1,807,619 1,941,315 1,996,741 2,054,626 2,114,535 less: Net Revenue From Prior Rate Adjustments - - (4,158,844) (19,205,708) (19,604,462) (20,196,514) (20,646,485) (21,266,108) (22,839,003) (23,491,069) (24,172,066) Net Revenue Deficiency (Surplus) 145,109$ 3,535,046$ 15,046,865$ 398,754$ 592,052$ 449,971$ 619,624$ 1,572,895$ 652,065$ 680,997$ 704,815$ Required Adjustment (Full Year) 2.94% 71.70% 151.09% 1.59% 2.33% 1.73% 2.34% 5.81% 2.28% 2.32% 2.35% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Rate Revenue with no Increase 4,930,040$ 4,930,040$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ Revenues from Prior Rate Increases - - 4,158,844 19,205,708 19,604,462 20,196,514 20,646,485 21,266,108 22,839,003 23,491,069 24,172,066 Rate Revenue Before Rate Increase (Incl. previous increases) 4,930,040 4,930,040 9,958,844 25,005,708 25,404,462 25,996,514 26,446,485 27,066,108 28,639,003 29,291,069 29,972,066 Required Annual Rate Increase (Full Year) 2.94% 71.70% 151.09% 1.59% 2.33% 1.73% 2.34% 5.81% 2.28% 2.32% 2.35% Number of Months New Rates Will Be In Effect 12 12 12 12 12 12 12 12 12 12 12 Info: Percentage Increase to Generate Required Revenue 2.94% 71.70% 151.09% 1.59% 2.33% 1.73% 2.34% 5.81% 2.28% 2.32% 2.35% Policy Induced Rate Increases 0.00% ANNUAL RATE INCREASE 0.00% 71.70% 151.09% 1.59% 2.33% 1.73% 2.34% 5.81% 2.28% 2.32% 2.35% CUMULATIVE RATE INCREASE 0.00% 71.70% 331.13% 338.01% 348.22% 355.97% 366.66% 393.78% 405.02% 416.76% 428.91% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Rate Revenues After Rate Increase 4,930,040$ 8,465,086$ 25,005,708$ 25,404,462$ 25,996,514$ 26,446,485$ 27,066,108$ 28,639,003$ 29,291,069$ 29,972,066$ 30,676,881$ Full Year Rate Revenues After Rate Increase 4,930,040 8,465,086 25,005,708 25,404,462 25,996,514 26,446,485 27,066,108 28,639,003 29,291,069 29,972,066 30,676,881 Partial Year Adjustment - - - - - - - - - - - Additional (Reduction of) Taxes Due to Rate Increases - 300,479 1,632,485 1,666,379 1,716,704 1,754,951 1,807,619 1,941,315 1,996,741 2,054,626 2,114,535 Net Cash Flow After Rate Increase (132,774)$ 0$ (0)$ 0$ (0)$ (0)$ (0)$ (0)$ 0$ 0$ -$ Coverage After Rate Increase 1.31 2.97 2.77 2.45 2.41 2.51 2.51 1.99 1.98 1.99 1.99 Coverage After Rate Increase (Total Debt) 1.11 1.07 1.16 1.11 1.09 1.10 1.10 1.08 1.08 1.08 1.08 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Revenue Bond Proceeds -$ -$ -$ -$ -$ -$ -$ 17,150,000$ -$ -$ -$ PWTF Loans - - - - - - - - - - - Other Loan Proceeds - 41,967,352 5,000,000 - - - - - - - - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending Fund Balance - Operating Fund 4,399,958$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ Minimum Target - Operating Fund 504,810 597,371 2,910,715 3,038,045 3,126,751 3,218,119 3,312,227 3,409,159 3,508,999 3,611,834 3,717,754 Ending Fund Balance - Capital Fund 2,000,000$ 21,465,352$ 7,303,659$ 65,876$ 66,534$ 67,200$ 67,872$ 62,092$ 62,713$ 63,340$ 63,973$ Minimum Target - Capital Fund 868,897 1,834,097 2,413,917 2,567,888 2,567,888 2,567,888 2,567,888 2,911,017 2,911,017 2,911,017 2,911,017 Annual CIP (Inflated)-$ 48,260,000$ 28,991,000$ 7,698,515$ -$ -$ -$ 17,156,459$ -$ -$ -$ New Dept Assumptions Fund Balance Impacts Test 1: Cash Flow Sufficiency Test Test 2: Coverage Sufficiency Test Rate Increases Impacts of Rate Increases Maximum Revenue Deficiency Page 380 of 464 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Fund Activity 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 OPERATING Beginning Balance 6,532,732$ 3,948,893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ plus: Net Cash Flow after Rate Increase (132,774) 0 (0) 0 (0) (0) (0) (0) 0 0 - 0 0 - - (0) - - - - - less: Transfer of Surplus to Capital Fund (If No Manual Entry)(2,000,000) (3,948,000) - - - - - - - - - - - - - - - - - - - Ending Balance 4,399,958$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ 893$ Maximum Funds to be Kept as Operating Reserves 504,810$ 597,371$ 2,910,715$ 3,038,045$ 3,126,751$ 3,218,119$ 3,312,227$ 3,409,159$ 3,508,999$ 3,611,834$ 3,717,754$ 3,826,851$ 3,939,222$ 4,054,963$ 4,174,177$ 4,296,968$ 4,423,442$ 4,553,710$ 4,687,886$ 4,826,088$ 4,968,435$ Info: No of Days of Cash Operating Expenses 523 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Info: No of Days of Cash Operating Expenses Target 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 Difference over or (under) target funds 3,895,148$ (596,477)$ (2,909,822)$ (3,037,152)$ (3,125,858)$ (3,217,225)$ (3,311,334)$ (3,408,266)$ (3,508,105)$ (3,610,940)$ (3,716,860)$ (3,825,958)$ (3,938,329)$ (4,054,070)$ (4,173,284)$ (4,296,074)$ (4,422,548)$ (4,552,817)$ (4,686,993)$ (4,825,194)$ (4,967,542)$ Manual Entry for Transfer to Capital Fund (2,000,000) (3,948,000) CAPITAL Beginning Balance -$ -$ 21,465,352$ 7,303,659$ 65,876$ 66,534$ 67,200$ 67,872$ 62,092$ 62,713$ 63,340$ 63,973$ 64,613$ 65,259$ 65,912$ 66,571$ 67,237$ 67,909$ 68,588$ 69,274$ 69,967$ plus: Rate Funded System Reinvestment - - - - - - - - - - - - - - - - - - - - - plus: Transfers from Operating Fund 2,000,000 3,948,000 - - - - - - - - - - - - - - - - - - - plus: Grants/ Donations/ CIAC - - - - - - - - - - - - - - - - - - - - - plus: Additional Proceeds (Costs)- 23,810,000 9,400,000 387,695 - - - - - - - - - - - - - - - - - plus: Capital Expansion Fee Revenue - - - - - - - - - - - - - - - - - - - - - plus: Revenue Bond Proceeds - - - - - - - 17,150,000 - - - - - - - - - - - - - plus: PWTF Loans - - - - - - - - - - - - - - - - - - - - - plus: Other Loan Proceeds - 41,967,352 5,000,000 - - - - - - - - - - - - - - - - - - plus: Interest Earnings - - 429,307 73,037 659 665 672 679 621 627 633 640 646 653 659 666 672 679 686 693 700 Total Funding Sources 2,000,000$ 69,725,352$ 36,294,659$ 7,764,391$ 66,534$ 67,200$ 67,872$ 17,218,550$ 62,713$ 63,340$ 63,973$ 64,613$ 65,259$ 65,912$ 66,571$ 67,237$ 67,909$ 68,588$ 69,274$ 69,967$ 70,666$ less: Capital Expenditures - (48,260,000) (28,991,000) (7,698,515) - - - (17,156,459) - - - - - - - - - - - - - Ending Capital Fund Balance 2,000,000$ 21,465,352$ 7,303,659$ 65,876$ 66,534$ 67,200$ 67,872$ 62,092$ 62,713$ 63,340$ 63,973$ 64,613$ 65,259$ 65,912$ 66,571$ 67,237$ 67,909$ 68,588$ 69,274$ 69,967$ 70,666$ Minimum Target Balance 868,897$ 1,834,097$ 2,413,917$ 2,567,888$ 2,567,888$ 2,567,888$ 2,567,888$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ 2,911,017$ COMBINED BEGINNING FUND BALANCE 6,532,732$ 3,948,893$ 21,466,245$ 7,304,552$ 66,769$ 67,428$ 68,093$ 68,765$ 62,985$ 63,606$ 64,233$ 64,867$ 65,506$ 66,152$ 66,805$ 67,464$ 68,130$ 68,802$ 69,481$ 70,167$ 70,860$ COMBINED ENDING FUND BALANCE 6,399,958$ 21,466,245$ 7,304,552$ 66,769$ 67,428$ 68,093$ 68,765$ 62,985$ 63,606$ 64,233$ 64,867$ 65,506$ 66,152$ 66,805$ 67,464$ 68,130$ 68,802$ 69,481$ 70,167$ 70,860$ 71,560$ Info: No of Days of Cash Operating Expenses 761 2,156 774 7 7 7 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 DEBT RESERVE Beginning Balance -$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ plus: Reserve Funding from New Debt - - - - - - - 1,512,667 - - - - - - - - - - - - - less: Use of Reserves for Debt Service - - - - - - - - - - - - - - - - - - - - - Ending Balance -$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 1,639,977$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ 3,152,644$ Minimum Target Balance 2,388,960$ 2,388,960$ 2,388,960$ 2,388,960$ 2,388,960$ 2,244,864$ 2,238,924$ 3,263,436$ 3,263,436$ 3,263,436$ 3,263,436$ 3,263,436$ 3,261,873$ 3,261,873$ 3,261,673$ 3,260,933$ 3,260,933$ 3,260,933$ 3,260,778$ 3,260,778$ 3,259,757$ MAJOR MAINTENANCE FUND Beginning Balance -$ -$ -$ 245,000$ 420,525$ 41,866$ 239,347$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ plus: Reserve Funding from O&M - - 345,000 360,525 371,341 382,481 393,955 405,774 417,947 430,486 443,400 456,702 470,403 484,515 499,051 514,022 529,443 545,326 561,686 578,537 595,893 less: Use of Reserves for Maintenance - - (100,000) (185,000) (750,000) (185,000) (505,000) (405,774) (417,947) (430,486) (443,400) (456,702) (470,403) (484,515) (499,051) (514,022) (529,443) (545,326) (561,686) (578,537) (595,893) Ending Balance -$ -$ 245,000$ 420,525$ 41,866$ 239,347$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ 128,302$ Minimum Target Balance 136,148$ 424,275$ 424,275$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Funds 11/27/2024 2:47 PM Pa g e 3 8 1 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 3,948,893.20$ 11/27/2024 2:47 PM Pa g e 3 8 2 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Reference Historical CPI Year Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Avg. % Annual Avg % June to June Avg 2004 185 186 187 188 189 190 189 190 190 191 191 190 189 2005 191 192 193 195 194 195 195 196 199 199 198 197 195 3.39%2.53%10-Year Average June to June 2006 198 199 200 202 203 203 204 204 203 202 202 202 202 3.23%4.32%1.88% 2007 202 203 205 207 208 208 208 208 208 209 210 210 207 2.85%2.69% 2008 211 212 214 215 217 219 220 219 219 217 212 210 215 3.84%5.02% 2009 211 212 213 213 214 216 215 216 216 216 216 216 215 -0.36%-1.43%5-Year Annual Average 2010 217 217 218 218 218 218 218 218 218 219 219 219 218 1.64%1.05%2.46% 2011 220 221 223 225 226 226 226 227 227 226 226 226 225 3.16%3.56%10-Year Annual Average 2012 227 228 229 230 230 229 229 230 231 231 230 230 230 2.07%1.66%1.89% 2013 230 232 233 233 233 234 234 234 234 234 233 233 233 1.46%1.75% 2014 234 235 236 237 238 238 238 238 238 237 236 235 237 1.62%2.07% 2015 234 235 236 237 238 239 239 238 238 238 237 237 237 0.12%0.12% 2016 237 237 238 239 240 241 241 241 241 242 241 241 240 1.26%1.00% 2017 243 244 244 245 245 245 245 246 247 247 247 247 245 2.13%1.63% 2018 248 249 250 251 252 252 252 252 252 253 252 251 251 2.44%2.87% 2019 252 253 254 256 256 256 257 257 257 257 257 257 256 1.81%1.65% 2020 258 259 258 256 256 258 259 260 260 260 260 260 259 1.23%0.65% 2021 262 263 265 267 269 272 273 274 274 277 278 279 271 4.70%5.39% 2022 281 284 288 289 292 Construction Cost Index Year Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Average 2002 6,462 6,462 6,502 6,480 6,512 6,532 6,605 6,592 6,589 6,579 6,578 6,563 6,538 2003 6,581 6,640 6,627 6,635 6,642 6,694 6,696 6,733 6,741 6,771 6,794 6,782 6,695 2004 6,825 6,861 6,957 7,017 7,064 7,109 7,126 7,188 7,298 7,314 7,312 7,308 7,115 2005 7,297 7,298 7,309 7,355 7,398 7,415 7,422 7,479 7,540 7,563 7,630 7,647 7,446 2006 7,660 7,689 7,692 7,695 7,691 7,700 7,721 7,723 7,763 7,883 7,911 7,888 7,751 2007 7,880 7,880 7,856 7,856 7,942 7,939 7,959 8,007 8,050 8,045 8,092 8,089 7,966 2008 8,090 8,094 8,109 8,112 8,141 8,185 8,293 8,362 8,557 8,623 8,602 8,551 8,310 2009 8,549 8,533 8,534 8,528 8,574 8,578 8,566 8,564 8,586 8,596 8,592 8,641 8,570 2010 8,660 8,672 8,671 8,677 8,761 8,805 8,865 8,858 8,857 8,921 8,951 8,952 8,804 2011 8,938 8,998 9,011 9,027 9,035 9,053 9,080 9,088 9,116 9,147 9,173 9,172 9,070 2012 9,176 9,198 9,268 9,273 9,290 9,291 9,324 9,351 9,341 9,376 9,398 9,412 9,308 2013 9,437 9,453 9,456 9,484 9,516 9,542 9,552 9,545 9,552 9,689 9,666 9,668 9,547 2014 9,664 9,681 9,702 9,750 9,796 9,800 9,835 9,846 9,870 9,886 9,912 9,936 9,807 2015 9,972 9,962 9,972 9,992 9,975 10,036 10,037 10,039 10,065 10,128 10,092 10,135 10,034 2016 10,133 10,182 10,242 10,280 10,315 10,337 10,379 10,386 10,403 10,435 10,443 10,531 10,339 2017 10,542 10,559 10,667 10,678 10,692 10,703 10,789 10,826 10,823 10,817 10,870 10,873 10,737 2018 10,878 10,889 10,959 10,972 11,013 11,069 11,116 11,124 11,170 11,183 11,184 11,186 11,062 2019 11,206 11,213 11,228 11,228 11,230 11,268 11,293 11,311 11,311 11,326 11,381 11,381 11,281 2020 11,392 11,396 11,397 11,413 11,418 11,436 11,439 11,455 11,499 11,539 11,579 11,626 11,466 2021 11,628 11,699 11,750 11,849 11,990 12,112 12,237 12,463 12,464 12,464 12,647 12,481 12,149 2022 12,556 12,684 12,791 12,899 13,004 13,111 13,168 Year Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Average 2003 1.84%2.75%1.92%2.39%2.00%2.48%1.38%2.14%2.31%2.92%3.28%3.34%2.40% 2004 3.71%3.33%4.98%5.76%6.35%6.20%6.42%6.76%8.26%8.02%7.62%7.76%6.28% 2005 6.92%6.37%5.06%4.82%4.73%4.30%4.15%4.05%3.32%3.40%4.35%4.64%4.65% 2006 4.97%5.36%5.24%4.62%3.96%3.84%4.03%3.26%2.96%4.23%3.68%3.15%4.10% 2007 2.87%2.48%2.13%2.09%3.26%3.10%3.08%3.68%3.70%2.06%2.29%2.55%2.77%5-Year Average 2008 2.66%2.72%3.22%3.26%2.51%3.10%4.20%4.43%6.30%7.18%6.31%5.72%4.31%3.29% 2009 5.67%5.42%5.24%5.13%5.32%4.80%3.29%2.41%0.34%-0.31%-0.12%1.05%3.13%10-Year Average 2010 1.30%1.63%1.61%1.74%2.18%2.64%3.49%3.44%3.16%3.77%4.18%3.60%2.73%2.97% 2011 3.21%3.76%3.92%4.04%3.12%2.81%2.43%2.60%2.92%2.54%2.49%2.45%3.02% 2012 2.66%2.23%2.85%2.72%2.82%2.64%2.68%2.89%2.47%2.50%2.45%2.62%2.63% 2013 2.85%2.77%2.03%2.27%2.44%2.70%2.45%2.08%2.25%3.34%2.85%2.71%2.56% 2014 2.40%2.41%2.60%2.80%2.94%2.70%2.96%3.15%3.33%2.04%2.54%2.78%2.72% 2015 3.19%2.90%2.79%2.49%1.83%2.41%2.06%1.96%1.98%2.45%1.82%2.00%2.32% 2016 1.61%2.21%2.70%2.88%3.41%3.00%3.41%3.46%3.36%3.02%3.47%3.91%3.04% 2017 4.04%3.70%4.15%3.87%3.65%3.54%3.95%4.24%4.03%3.67%4.09%3.25%3.85% 2018 3.19%3.13%2.73%2.75%3.00%3.42%3.03%2.75%3.21%3.39%2.89%2.87%3.03% 2019 3.01%2.97%2.46%2.34%1.97%1.81%1.59%1.68%1.26%1.28%1.76%1.75%1.98% 2020 1.67%1.63%1.51%1.64%1.68%1.49%1.30%1.27%1.66%1.88%1.74%2.15%1.63% 2021 2.07%2.66%3.10%3.83%5.01%5.91%6.98%8.80%8.39%8.02%9.22%7.35%5.96% 2022 7.98%8.42%8.87%8.86%8.46%8.24%7.61% 11/27/2024 2:47 PM Pa g e 3 8 3 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Local Government Investment Pool Year WA 1997 5.46% 1998 5.41% 1999 5.03% 2000 6.18% 2001 4.19% 2002 1.79% 2003 1.16% 2004 1.32%Ten Year Average 2005 3.17%0.70% 2006 4.90%Five Year Average 2007 5.09%1.18% 2008 2.68%Three Year Average 2009 0.71%1.02% 2010 0.26% 2011 0.17% 2012 0.16% 2013 0.14% 2014 0.10% 2015 0.16% 2016 0.47% 2017 0.97% 2018 1.90% 2019 2.31% 2020 0.64% 2021 0.11% 2022 Year ENR Bond Buyer Index 1890 167 Year Annual Average 1920 201 20.13% 1921 202 0.61%1920 2.19% 1922 174 -13.86%1921 2.19% 1923 214 22.99%1922 2.19% 1924 215 0.47%1923 2.19% 1925 207 -3.72%1924 2.19% 1926 208 0.48%1925 2.19% 1927 206 -0.96%1926 2.19% 1928 207 0.49%1927 2.19% 1929 207 0.00%1928 2.19% 1930 203 -1.93%1929 2.19% 1931 181 -10.84%1930 2.19% 1932 157 -13.26%1931 2.19% 1933 170 8.28%1932 2.19% 1934 198 16.47%1933 2.19% 1935 196 -1.01%1934 2.19% 1936 206 5.10%1935 2.19% 1937 235 14.08%1936 2.19% 1938 236 0.43%1937 2.19% 1939 236 0.00%1938 2.19% 1940 242 2.54%1939 2.19% 1941 258 6.61%1940 2.19% 1942 276 6.98%1941 2.19% 1943 290 5.07%1942 2.19% 1944 299 3.10%1943 2.19% 1945 308 3.01%1944 2.19% 1946 346 12.34%1945 2.19% 1947 413 19.36%1946 2.19% 1948 461 11.62%1947 2.19% 1949 477 3.47%1948 2.19% 1950 510 6.92%1949 2.19% 1951 543 6.47%1950 2.19% 1952 569 4.79%1951 2.19% 1953 600 5.45%1952 2.19% 1954 628 4.67%1953 2.74% 1955 660 5.10%1954 2.39% 1956 692 4.85%1955 2.48% 1957 724 4.62%1956 2.76% 1958 759 4.83%1957 3.28% 1959 797 5.01%1958 3.16% 1960 824 3.39%1959 3.56% 1961 847 2.79%1960 3.52% 1962 872 2.95%1961 3.45% 1963 901 3.33%1962 3.15% 1964 936 3.88%1963 3.17% 1965 971 3.74%1964 3.21% 11/27/2024 2:47 PM Pa g e 3 8 4 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 1966 1,019 4.94%1965 3.26% 1967 1,074 5.40%1966 3.81% 1968 1,155 7.54%1967 3.94% 1969 1,269 9.87%1968 4.45% 1970 1,381 8.83%1969 5.72% 1971 1,581 14.48%1970 6.33% 1972 1,753 10.88%1971 5.47% 1973 1,895 8.10%1972 5.26% 1974 2,020 6.60%1973 5.19% 1975 2,212 9.50%1974 6.17% 1976 2,401 8.54%1975 7.05% 1977 2,576 7.29%1976 6.64% 1978 2,776 7.76%1977 5.68% 1979 3,003 8.18%1978 6.02% 1980 3,237 7.79%1979 6.52% 1981 3,535 9.21%1980 8.59% 1982 3,825 8.20%1981 11.33% 1983 4,066 6.30%1982 11.66% 1984 4,146 1.97%1983 9.51% 1985 4,195 1.18%1984 10.10% 1986 4,295 2.38%1985 9.10% 1987 4,406 2.58%1986 7.32% 1988 4,519 2.56%1987 7.64% 1989 4,615 2.12%1988 7.68% 1990 4,732 2.53%1989 7.23% 1991 4,835 2.18%1990 7.27% 1992 4,985 3.10%1991 6.92% 1993 5,210 4.53%1992 6.44% 1994 5,408 3.78%1993 5.60% 1995 5,471 1.18%1994 6.18% 1996 5,622 2.76%1995 5.95% 1997 5,825 3.61%1996 5.76% 1998 5,920 1.64%1997 5.52% 1999 6,060 2.35%1998 5.09% 2000 6,221 2.67%1999 5.43% 2001 6,342 1.94%2000 5.71% 2002 6,538 3.09%2001 5.15% 2003 6,695 2.40%2002 5.04% 2004 7,115 6.28%2003 4.75% 2005 7,446 4.65%Five Year Average 2004 4.68% 2006 7,751 4.10%3.29%2005 4.40% 2007 7,966 2.77%2006 4.40% 2008 8,310 4.31%Ten Year Average 2007 4.40% 2009 8,570 3.13%2.97%2008 4.86% 2010 8,804 2.73%2009 4.62% 2011 9,070 3.02%2010 4.29% 2012 9,308 2.63%2011 4.51% 2013 9,547 2.56%2012 3.73% 2014 9,807 2.72%2013 4.27% 2015 10,034 2.32%2014 4.23% 2016 10,339 3.04%2015 3.66% 2017 10,737 3.85%2016 3.25%10 Year Average 2018 11,062 3.03%2017 3.67%3.47% 2019 11,281 1.98%2018 3.96% 2020 11,466 1.63%2019 3.42% 2021 12,149 5.96%2020 2.32% 2022 - 2021 2.19% 2022 11/27/2024 2:47 PM Pa g e 3 8 5 o f 4 6 4 City of Pasco PWRF Rate Study & COSA Connection Charge Existing System Total System Utility Capital Assets 43,444,871$ plus: Interest Accrued on Utility Funded Assets 8,163,976 less: Accumulated Depreciation (8,635,208) less: Grant Funding - less: Net Outstanding Debt Principal [a](20,108,148) TOTAL EXISTING SYSTEM AVAILABLE CAPACITY COSTS 22,865,491$ [a] Net Outstanding Debt Principal Calculation: Outstanding Debt Principal as of Year-End 2021 24,057,041$ less: Cash Balances as of Year-End 2021 (3,948,893) Net Outstanding Debt Principal (20,108,148)$ Customer Base Total System Existing Capacity Used (MGD)6.75 TOTAL CAPACITY AVAILABLE (mgd)8.64 Connection Charge Total System Existing System Portion Existing System Costs 22,865,491$ Total Capacity (mgd)8.64 Existing System CC Per MGD 2,646,469$ FCS GROUP (425) 867-1802 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) CC Page 26 of 47 Page 386 of 464 City of Pasco PWRF Rate Study & COSA Plant 2021 ENR 12,149 2022 Plant In Service - Description Donated Year Useful Life Years of Remaining Use Original Cost Accumulated Depreciation Function Applicable Asset Age Applicable Interest Rate Allocable Interest Cost Annual Depreciation Calculation ENR Replacement Cost Total System Grimmway Extra 100428 PLANT CONSTR cosrs 1995 1996 46 Years 20 Years 5,824,903$ 3,292,337$ Pre Treatment 10 5.76%3,353,688$ 126,628$ 5,622 12,586,730$ 100.00%100.00% 100429 PLANT CONSTR COST 1996 1997 27 Years 2 Years 401,085 371,375 Pre Treatment 10 5.52%221,499 14,855 5,825 836,493 100.00%0.00% 100430 PLANT IMPROVEMENTS 1997 1998 44 Years 20 Years 166,696 90,925 Pre Treatment 10 5.09%84,862 3,789 5,920 342,058 100.00%100.00% 100431 LAND IMPROVEMENTS 1999 2000 72 Years 50 Years 3,066,203 936,895 Treatment 10 5.71%1,750,546 42,586 6,221 5,987,657 100.00%100.00% 100434 WWíP-SLUDGE DRYING BEDS 2003 19 Years 0 Years 172,479 172,479 Pre Treatment 10 4.75%81,899 9,078 6,695 312,994 100.00%0.00% 100443 FOSTER WELLS PUMP UPGRADE 2002 40 Years 20 Years 525,543 262,771 Collection/Conveyance 10 5.04%264,742 13,139 6,538 976,542 100.00%0.00% 100444 REUSE FACIUTY 2002 40 Years 20 Years 54,234 27,117 Pre Treatment 10 5.04%27,320 1,356 6,538 100,775 100.00%100.00% 100445 REUSE FACILITY MISC 2003 2004 38 Years 20 Years 26,792 12,691 Pre Treatment 10 4.68%12,532 705 7,115 45,746 100.00%100.00% 100453 REUSE FACILITY EXPANSION 2005 2006 36 Years 20 Years 144,706 64,314 Pre Treatment 10 4.40%63,683 4,020 7,751 226,797 100.00%100.00% 100454 CAPITAL PROJECTS 1998 1999 43 Years 20 Years 32,617 17,446 Pre Treatment 10 5.43%17,703 759 6,060 65,394 100.00%100.00% 100503 2009 PWRF IRRIGATION UPGRADE 2010 32 Years 20 Years 92,252 34,594 Treatment 10 4.29%39,607 2,883 8,804 127,297 100.00%100.00% 100680 2014 PWRF Sedimentation Basin (2 cells)2014 28 Years 20 Years 1,080,596 308,742 Pre Treatment 8 4.23%365,890 38,593 9,807 1,338,680 100.00%100.00% 100698 2015 PWRF Plant Phase 1 Plant Expansion 2015 12 Years 5 Years 2,264,937 1,321,213 Pre Treatment 7 3.66%579,880 188,745 10,034 2,742,285 100.00%50.00% 100562 2010 PWRF IRRIGATION CIRCLE 2011 21 Years 10 Years 108,184 56,668 Treatment 10 4.51%48,791 5,152 9,070 144,907 100.00%100.00% 100607 2012 PWRf IRRIG CIRCLE ARM 2013 19 Years 10 Years 106,420 50,410 Treatment 9 4.27%40,905 5,601 9,547 135,426 100.00%100.00% 100608 2012 PWRf IRRIG CIRCLE PROBE 2013 19 Years 10 Years 47,760 22,623 Treatment 9 4.27%18,358 2,514 9,547 60,778 100.00%100.00% 100662 HACH PWRF SAMPLER 2014 8 Years 0 Years 6,294 6,294 Treatment 8 4.23%2,131 787 9,807 7,797 100.00%0.00% 100663 2013 KUBOTA RTV SOO 2014 8 Years 0 Years 7,232 7,232 Pre Treatment 8 4.23%2,449 904 9,807 8,959 100.00%100.00% Boom Lift Z34 Genie 2016 6 Years 0 Years 27,150 27,150 Pre Treatment 6 3.25%5,292 4,525 10,339 31,903 100.00%100.00% Screw Press & Cover 2016 16 Years 10 Years 149,791 56,172 Pre Treatment 6 3.25%29,194 9,362 10,339 176,013 100.00%0.00% Winter Storage Pond (35MG Pond)2016 31 Years 25 Years 869,367 168,265 Pre Treatment 6 3.25%169,440 28,044 10,339 1,021,555 100.00%100.00% Anerobic Pond Ph3 (8MG Pond)2016 26 Years 20 Years 470,343 108,541 Pre Treatment 6 3.25%91,670 18,090 10,339 552,679 100.00%100.00% Basin Rebuild Ph 5 2016 36 Years 30 Years 18,209 3,035 Pre Treatment 6 3.25%3,549 506 10,339 21,396 100.00%0.00% Storage Pond Pumps 8 MG Pumps 2016 24 Years 18 Years 103,254 25,813 Pre Treatment 6 3.25%20,124 4,302 10,339 121,329 100.00%100.00% Control Panel for Wattco 10" Circulation Heater 2017 20 Years 15 Years 11,254 2,814 Treatment 5 3.67%2,063 563 10,737 12,734 100.00%0.00% Control Panel for Wattco 10" Circulation Heater 2017 20 Years 15 Years 11,254 2,814 Treatment 5 3.67%2,063 563 10,737 12,734 100.00%0.00% Pump Electric Godwin Dri-Prim CD225M SS 2017 11 Years 6 Years 60,592 27,542 Treatment 5 3.67%11,107 5,508 10,737 68,560 100.00%100.00% Pump Electric Godwin Dri-Prim CD225M SS 2017 11 Years 6 Years 60,592 27,542 Treatment 5 3.67%11,107 5,508 10,737 68,560 100.00%100.00% Water Heather In-Line Wattco 10" Circulation 2017 15 Years 10 Years 10,276 3,425 Pre Treatment 5 3.67%1,884 685 10,737 11,627 100.00%0.00% Water Heather In-Line Wattco 10" Circulation 2017 15 Years 10 Years 10,276 3,425 Pre Treatment 5 3.67%1,884 685 10,737 11,627 100.00%0.00% Screw Conveyer Auger 2017 6 Years 1 Years 45,383 37,819 Pre Treatment 5 3.67%8,319 7,564 10,737 51,351 100.00%0.00% VFD Danfoss 250 HP Pump #4 2017 5 Years 0 Years 23,069 23,069 Treatment 5 3.67%4,229 4,614 10,737 26,102 100.00%0.00% HVAC Reuse Facility 2018 12 Years 8 Years 8,960 2,987 Pre Treatment 4 3.96%1,418 747 10,737 10,138 100.00%100.00% PWRF - Irrigation Expansion 2005 27 Years 10 Years 233,068 146,746 Treatment 10 4.40%102,491 8,632 7,446 380,261 100.00%100.00% PWRF- Irrigation Upgrade 2005 27 Years 10 Years 89,370 56,270 Treatment 10 4.40%39,301 3,310 7,446 145,812 100.00%100.00% PWRF - Irrigation Upgade 2005 27 Years 10 Years 211,600 133,229 Treatment 10 4.40%93,051 7,837 7,446 345,235 100.00%100.00% 100662 HACH PWRF SAMPLER 2018 14 Years 10 Years 7,000 2,000 Collection/Conveyance 4 3.96%1,108 500 11,062 7,688 100.00%100.00% Columbia East Force Main 2021 51 Years 50 Years 3,572,087 70,041 Collection/Conveyance 1 2.19%78,122 70,041 100.00%100.00% Columbia East Lift Station 2021 26 Years 25 Years 9,962,516 383,174 Collection/Conveyance 1 2.19%217,880 383,174 100.00%100.00% IPS 2021 50 Years 50 Years 9,110,529 182,211 Collection/Conveyance 1 2.19%199,247 182,211 100.00%100.00% Foster Wells Force Mains 2021 50 Years 50 Years 4,250,000 85,000 Collection/Conveyance 1 2.19%92,948 85,000 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Processor of Benefit Allocations FCS GROUP (425) 867-1802 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Plant Page 27 of 47 Pa g e 3 8 7 o f 4 6 4 New CIP 100.00% 0 2023 50 Years - - 3.47%- Foster Wells PS Project 2023 50 Years 250,000 Collection/Conveyance - 3.47%- 0 2023 50 Years - - 3.47%- Burnham Work Acceleration Agreement 2023 50 Years 6,300,000 - 3.47%- 0 2023 50 Years - - 0 2023 50 Years - - 3.47%- Simplot Discharge to Columbia East PS 2023 50 Years - Collection/Conveyance - 3.47%- 0 2023 50 Years - - 3.47%- 0 2023 50 Years - - 3.47%- 0 2023 50 Years - - IPS Discharge Piping 24 in. and 30 inch 2023 50 Years - Pre Treatment - 3.47%- 0 2023 50 Years - - 3.47%- 0 2023 50 Years - - 3.47%- Existing115 & 35 MG Pond Modifications and New Liners 2023 50 Years 13,761,209 Pre Treatment - 3.47%- 0 2023 50 Years - - 3.47%- New Storage Ponds (317 MG) - Phase 2 2023 50 Years 37,300,000 Pre Treatment - PWRF Pretreatment Improvements (Phase 3) - AD/SBR/RNG 2023 50 Years - - 3.47%- 0 2023 50 Years - - 3.47%- 0 2023 50 Years - - 0 2023 50 Years - - 3.47%- New Office/Lab Building (42' x 48' CMU/metal roof)2023 50 Years 700,000 Pre Treatment - 3.47%- 0 2023 50 Years - - 3.47%- Replace Circle 7 Pivot 2023 50 Years - Treatment - 3.47%- Replace Circle 5 Pivot 2023 50 Years 350,000 Treatment - Total - 102,106,080$ 8,635,208$ 8,163,976$ 1,294,061$ 29,124,619$ Plant in Service Original Cost Interest Cost Existing Treatment 4,127,912$ 2,165,751$ Collection/Conveyance 27,427,675 854,047 Pre Treatment 11,889,284 5,144,178 General - - Future Treatment 350,000 - Collection/Conveyance 250,000 - Pre Treatment 51,761,209 - General - Total 95,806,080$ 8,163,976$ Plant in Service Accumulated Depr Original Cost Interest Cost Replacement Cost Total System 8,635,208$ 43,444,871$ 8,163,976$ 29,124,619$ Grimmway 6,944,110 36,677,490 7,157,632 25,296,066 Extra - - - - Total 54,420,685$ FCS GROUP (425) 867-1802 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Plant Page 28 of 47 Pa g e 3 8 8 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Functional Allocation Customer Flow Nitrogen TSS BOD RNG Credit Headworks LRAD RNG Nitrogen Removal TAXES AS ALL OTHERS Existing Treatment 4,127,912$ 10.00% 40.00% 15.00% 30.00% 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%Treatment Collection/Conveyance 27,427,675 10.00% 80.00% 0.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%Pumping Pre Treatment 11,889,284 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%Existing Pretreatment Future Treatment 350,000 10.00% 40.00% 15.00% 30.00% 5.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%Treatment Collection/Conveyance 250,000 10.00% 80.00% 0.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%Pumping Pre Treatment 51,761,209 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%Existing Pretreatment Total Utility Plant 95,806,080$ 9,580,608$ 58,941,076$ 671,687$ 26,388,814$ 223,896$ -$ -$ -$ -$ -$ -$ -$ 95,806,080$ PWRF Service Functions 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Allocation of "As All Others" -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL 95,806,080$ 9,580,608$ 58,941,076$ 671,687$ 26,388,814$ 223,896$ -$ -$ -$ -$ -$ -$ -$ 95,806,080$ Allocation Percentages 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% ALLOCATION BASIS Allocation of Plant in Service Plant in Service Total Costs FUNCTIONS OF PWRF SERVICE TOTAL FCS GROUP (425) 867-1802 Page 29 of 47 Func Alloc Pa g e 3 8 9 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Test Year => 2024 Customer Flow Nitrogen TSS BOD RNG Credit Headworks LRAD RNG Nitrogen Removal TAXES AS ALL OTHERS State Taxes -$ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00%100.00% All Taxes City Taxes 493,000 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%100.00%All Taxes Utility Admin Wages 158,356$ 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All Customer Wages-Overtime - 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All Customer Social Security 24,489 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer State Retirement 12,376 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer Deferred Compensation 2,437 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer Life Insurance 258 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer Life Vision Worker Comp 975 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer Sick Leave Emp Security Dept 189 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer Auto Allowance 768 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer I/F Medical Vision Prem 14,096 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer I/F Dental Premium 1,327 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer I/F Vision Prem Employer 83 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer Office Janitorial Supplies 5,088 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Customer O&M Supplies 30,821 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service SCADA/Telemetry Services 9,275 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service City Mgr Discretionary Items - 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Dues Subscription Membership 1,590 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Train Registration Tuition 4,441 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Lodging Meals Miles Airfare 5,883 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Consultants 100,000 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Janitorial Services 795 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service SCADA/Telemetry Services 20,140 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Professional Services 10,674 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service R&M Services Contracts 742 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Software Maintenance 11,713 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Telephone Cell Pagers 5,512 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Internet Web Communications 6,360 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Insurance Premiums & Claims 3,941 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F Admin Services 137,395 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Plant Ops Wages 507,777 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Wages - Overtime 17,850 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Wages - Seasonal/Temp - 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Social Security 66,862 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service State Retirement 46,675 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Deferred Compensation 14,162 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Life Insurance 988 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Life Vision Worker Comp 12,695 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Sick Leave Emp Security Dept 730 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F Medical Vision Prem 78,167 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F Dental Premium 7,362 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F Vision Prem Employer 460 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service O&M Supplies 72,610 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service R&M Supplies 272,208 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Gravel 21,200 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Inventory 66,768 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Fuel - gasoline-diesel - 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Tools Equip Furn < $5,000 15,476 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Train Registration Tuition 6,360 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Lodging Meals Miles Airfare 5,300 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Laundry 2,650 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Permits Liens Recording Licenses 23,850 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Professional Services 57,982 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service R&M Other Services 471,700 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Vehicle Equip Other Rentals 170,978 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Electricity 82,680 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Flow Electricity Pump/Lift Stations 57,240 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Flow Garbage Waste Disposal 60,000 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Insurance Premiums & Claims 15,296 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Property Tax Stmt Assessments 1,055 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Maint Project Services 212,000 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F ER Vehicle Rent 83,263 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F ER O&M 47,965 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F ER Fuel 39,220 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service I/F Eng O&M Chargebacks 50,891 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Other NonBus Lic/Permits - 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Pre Treatment Plant Wages 50,939 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Wages - Overtime - 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Social Security 3,897 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment State Retirement 5,222 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Life Insurance 105 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Life Vision Worker Comp 1,304 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Sick Leave Emp Security Dept 83 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment I/F Medical Vision Prem 8,375 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment I/F Dental Premium 790 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment ALLOCATION BASIS Allocation of Operating Expenses OPERATING EXPENSE TOTAL COSTS FUNCTIONS OF PWRF SERVICE TOTAL FCS GROUP (425) 867-1802 Page 30 of 47 Func Alloc Pa g e 3 9 0 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) I/F Vision Prem Employer 48 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment O&M Supplies 2,809 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Chemicals 265 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Tools Equip Furn < $5,000 3,180 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Train Registration Tuition 689 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Lodging Meals Miles Airfare 1,060 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Laundry - 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Advertising 1,060 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Professional Services 84,800 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Postage Courier Shipping 3,180 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment R&M Other Services 530 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Telephone Cell Pagers 265 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment Insurance Premiums & Claims 1,320 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment [Extra]- 10.00% 55.00% 0.00% 35.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Existing Pretreatment [Extra] Operating Cost Savings Electricity (69,960) 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Flow Clean Screens (55,115) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Clean Sand Traps (60,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Clean Clarifier (60,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Skimming Grease (18,615) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Grease Trap Cleaning (7,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Grit Pump Maint (1,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Screen Maint (7,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Screw Press Maint (500) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Dry Bed Turning/Load Out (36,683) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Waste Disposal (40,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Solids Tank Pump Maint (1,200) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Pressure Washer Maint (5,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Building Maint (6,000) 10.00% 61.52% 0.70% 27.54% 0.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As Plant in Service Burnham Treatment Adjusted Treatment Fee (Existing Customers)13,806,000 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 15.50% 42.71% 18.90% 22.90% 0.00% 0.00%100.00%Adjusted Treatment Fee Electricity 74,996 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%All Flow Purchased Natural Gas 550,002 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment Solid waste disposal 735,004 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment Consumables 419,004 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment Major Maintenance Expenses 345,000 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment Taxes - 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment Burham Admin Costs 212,401 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment RNG Credit Incl. in Treatment Fee 4,589,453 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As RNG Credit Total RNG Credit (6,480,000) 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%As RNG Credit [Extra]- 0.00% 36.85% 22.90% 0.00% 40.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%100.00%Future Pretreatment Total Operating Expenses 17,706,850$ 487,602$ 2,610,796$ 535,404$ 748,531$ 916,064$ (1,890,547)$ 2,139,536$ 5,895,931$ 2,608,947$ 3,161,586$ 493,000$ -$ 17,706,850$ Water Service Functions 2.75% 14.74% 3.02% 4.23% 5.17% -10.68% 12.08% 33.30% 14.73% 17.86% 2.78% 100.00% Allocation of "As All Others" -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL 17,706,850$ 487,602$ 2,610,796$ 535,404$ 748,531$ 916,064$ (1,890,547)$ 2,139,536$ 5,895,931$ 2,608,947$ 3,161,586$ 493,000$ -$ 17,706,850$ 2024 Operating Expenses Match Allocation Percentages 2.75% 14.74% 3.02% 4.23% 5.17% -10.68% 12.08% 33.30% 14.73% 17.86% 2.78% 0.00% 100.00% FCS GROUP (425) 867-1802 Page 31 of 47 Func Alloc Pa g e 3 9 1 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Allocation of Revenue Requirement Design Rates For => 2024 Customer Flow Nitrogen TSS BOD RNG Credit Headworks LRAD RNG Nitrogen Removal TAXES AS ALL OTHERS OPERATING AND CAPITAL EXPENSES Cash Operating Expenses (City Costs) 3,454,990$ 14.11% 49.28% 0.51% 21.67% 0.17% 0.00% 0.00% 0.00% 0.00% 0.00% 14.27% 0.00% 100.00%As O&M Expenses Cash Operating Expenses (Burnham) 14,251,860 0.00% 6.37% 3.63% 0.00% 6.39% -13.27% 15.01% 41.37% 18.31% 22.18% 0.00% 0.00% 100.00%As Burnham O&M Existing Debt Service 2,981,630 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%All Customer New Debt Service 2,717,560 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%All Customer Total Expenses 23,406,041$ 26.43% 11.15% 2.29% 3.20% 3.91% -8.08% 9.14% 25.19% 11.15% 13.51% 2.11% 0.00% 100.00%2024 Total Expenses Match OTHER REVENUES AND ADJUSTMENTS Less: Operating Fund & Debt Reserve Fund Interest Earnings (32,817)$ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100.00%As All Others Plus: Additional (Reduction of) Taxes Due to Rate Increases 1,632,485 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%All Flow Net Cash Flow After Rate Increase (0) 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%All Customer Partial Year Adjustment - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100.00%As All Others Rate Revenue Requirement 25,005,708$ 6,186,793$ 4,243,282$ 535,404$ 748,531$ 916,064$ (1,890,547)$ 2,139,536$ 5,895,931$ 2,608,947$ 3,161,586$ 493,000$ (32,817)$ 25,005,708$ Water Service Functions 48.98% 33.60% 4.24% 5.93% 7.25% 0.00% 0.00% 0.00% 0.00% 0.00% 100% Allocation of "As All Others" 225,419$ 154,606$ 19,508$ 27,273$ 33,377$ -$ -$ -$ -$ -$ (493,000)$ 32,817$ -$ 2024 Rate Revenue Requirement Match Rate Revenue Requirement 25,005,708$ 6,412,211$ 4,397,888$ 554,912$ 775,804$ 949,441$ (1,890,547)$ 2,139,536$ 5,895,931$ 2,608,947$ 3,161,586$ -$ 0$ 25,005,708$ Cash Operating Expenses 713,021 4,397,888 554,912 775,804 949,441 (1,890,547) 2,139,536 5,895,931 2,608,947 3,161,586 - 0 Existing Debt Service 2,981,630 - - - - - - - - - - - New Debt Service 2,717,560 - - - - - - - - - - - Rate Funded System Reinvestment - - - - - - - - - - - - Allocation Percentages 25.64% 17.59% 2.22% 3.10% 3.80% -7.56% 8.56% 23.58% 10.43% 12.64% 0.00% 0.00% 100.00% REVENUE REQUIREMENT TOTAL COSTS FUNCTIONS OF PWRF SERVICE TOTAL ALLOCATION BASIS FCS GROUP (425) 867-1802 Page 32 of 47 Func Alloc Pa g e 3 9 2 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Allocation Factors PWRF FUNCTIONAL ALLOCATION FACTORS FUNCTIONS OF PWRF SERVICE Customer Flow Nitrogen TSS BOD RNG Credit Headworks LRAD RNG Treatment 10.00%40.00%15.00%30.00%5.00%0.00%0.00%0.00%0.00% Pumping 10.00%80.00%0.00%10.00%0.00%0.00%0.00%0.00%0.00% General Plant 10.00%57.00%3.00%28.00%2.00%0.00%0.00%0.00%0.00% As Plant in Service 10.00%61.52%0.70%27.54%0.23%0.00%0.00%0.00%0.00% All Customer 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% All Flow 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% All Nitrogen 0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00% All TSS 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00% All BOD 0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00% All Extra 2 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00% All Extra 3 0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00% All Extra 4 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00% All Taxes 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% As All Others 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% As O&M Expenses 2.75%14.74%3.02%4.23%5.17%-10.68%12.08%33.30%14.73% Debt Service 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% As RNG Credit 0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00% Existing Pretreatment 10.00%55.00%0.00%35.00%0.00%0.00%0.00%0.00%0.00% Future Pretreatment 0.00%36.85%22.90%0.00%40.25%0.00%0.00%0.00%0.00% Adjusted Treatment Fee 0.00%0.00%0.00%0.00%0.00%0.00%15.50%42.71%18.90% City's Curent Split CIP Allocation Permit Limits Customer Accounts Existing Debt Service IPS Debt Service Permitted Flow (cumulative annual) MG Annual Flow (Existing Customers) Annual Flow (Future Customers)Permitted Flow (with COW Winter Storage (Prior Version) Winter Storage (Phase 2) Updated Max Month Flow (MGD) Avg. BOD Load (ppd) BOD (Existing Cust) BOD (Future Cust) Avg. N Load (ppd) TN Load (Existing Cust) TN Load (Future Cust) Avg. TSS Load (ppd) TSS Load (Existing Cust) TSS Load (Future Cust) Pasco Processing 1 38.62%26.80%384 384 - 384 12 - 2.50 26,500 26,500 0 600 600 0 14,040 14,040 Freeze Pack 1 2.44%0.93%25 25 - 25 5 - 0.11 1,600 1,600 0 140 140 0 320 320 Twin City Foods 1 18.49%15.71%225 225 - 225 5 5 1.80 37,000 37,000 0 620 620 0 13,580 13,580 Reser's New Plant 1 11.12%10.47%150 115 35 150 2 15 0.41 10,000 7,667 2,333 345 265 81 7,310 7,310 Simplot 1 22.91%11.42%306 230 76 306 25 76 1.25 24,200 16,239 7,961 490 330 160 14,830 14,830 Grimmway 1 6.42% 21.37%254 254 254 50 - 1.65 15,800 0 15,800 120 0 120 5,840 5,840 Darigold WW 1 0.00%13.29%256 256 356 200 180 0.84 17,600 0 17,600 1,150 0 1,150 2,330 2,330 [Extra]0.00%0.00% [Extra]0.00%0.00% Total 7 100.00%100.00%1,600 979 621 1,700 299 276 8.56 132,700 89,006 43,694 3,465 1,954 1,511 58,250 50,080 8,170 Adjustment factor - Component Total Cost Flow Nitrogen TSS BOD % allocation Previous Cost Allocation % Allocation Headworks 19,280,000$ 100%0%0%0%15.50%17,900,000$ 13.07% LRADs 53,130,000 50%0%0%50%42.71%55,100,000 40.22% Nitrogen Removal 28,490,000 0%100%0%0%22.90%30,200,000 22.04% Gas Conditioning 23,510,000 0%0%0%100%18.90%33,800,000 24.67% Total 124,410,000$ 36.85%22.90%0.00%40.25%100.00%137,000,000$ Columbia Force Main Foster Wells IPS & PWRF 1,930,000$ 4,000,000$ 10,300,000$ Processor Flow w/ COW Flow for only Reser's, Pasco Processing, TCF & any new processor Flow w/ COW Pasco Processing - 384 384 Freeze Pack - 25 Twin City Foods - 225 225 Reser's New Plant - 150 150 Simplot - 306 Grimmway 254 254 Darigold WW - 356 City of Pasco - - - Total 254 759 1,700 Processor Columbia Force Main Foster Wells IPS & PWRF Total IPS Dept % Weighted Allocation for IPS Debt Pasco Processing -$ 2,023,715$ 2,326,588$ 4,350,304$ 26.80% Freeze Pack - - 151,471 151,471 0.93% Twin City Foods - 1,185,771 1,363,235 2,549,006 15.71% Reser's New Plant - 790,514 908,824 1,699,337 10.47% Simplot - - 1,854,000 1,854,000 11.42% Grimmway 1,930,000 - 1,538,941 3,468,941 21.37% Darigold WW - - 2,156,941 2,156,941 13.29% City of Pasco - - - - 0.00% Total 1,930,000$ 4,000,000$ 10,300,000$ 16,230,000$ 11.89% 88.11% 5.95% Existing Debt Allocation 2023 Pasco Processing Freeze Pack Twin City Foods Reser's New Plant Simplot Grimmway Darigold WW Total Design Criteria Allocation Basis Page 33 of 47 AFactors Pa g e 3 9 3 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) 1994 Original Debt 60,000 60,000$ 2007 & 2008 Sepcial Assess Debt 65,000 25,200 90,200 2013 Bond 293,488 19,768 153,055 75,776 151,552 693,639 2018 Haefic Loan 55,871 4,365 32,009 16,732 33,464 26,189 168,630 2020 Bond - - - - - - - - Dept of Commerce PWB Loan 140,999 11,016 80,781 42,226 84,452 66,093 425,567 Total 555,358$ 35,149$ 265,845$ 159,934$ 329,468$ 92,282$ -$ 1,438,036$ % Allocation 38.62%2.44%18.49%11.12%22.91%6.42%0.00% Page 34 of 47 AFactors Pa g e 3 9 4 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Customer Allocation Total System Costs CUSTOMER 713,021$ Allocation Accounts Pasco Processing 1 14.29%101,860$ 8,488$ Freeze Pack 1 14.29%101,860 8,488 Twin City Foods 1 14.29%101,860 8,488 Reser's New Plant 1 14.29%101,860 8,488 Simplot 1 14.29%101,860 8,488 Grimmway 1 14.29%101,860 8,488 Darigold WW 1 14.29%101,860 8,488 Total 7 100.00%713,021$ 8,488$ EXISTING DEBT SERVICE 2,981,630$ EXISTING DEBT SERVICE 1,232,980$ EXISTING DEBT SERVICE - Future IPS Debt 852,270$ EXISTING DEBT SERVICE - 2023 Revenue Bond 896,380$ Allocation Allocation Allocation Allocation Allocation Allocation Accounts Existing Debt Service Accounts Existing Debt Service IPS Debt Service Permitted Flow (with COW Pasco Processing 1 30.42%907,087$ 907,087$ Pasco Processing 1 38.62%476,167$ 476,167$ Pasco Processing 0.27 26.80%228,443$ 852,270$ Pasco Processing 384.00 22.59%202,476$ 527$ Freeze Pack 1 1.72%51,273 51,273 Freeze Pack 1 2.44%30,137 30,137 Freeze Pack 0.01 0.93%7,954 852,270 Freeze Pack 25.00 1.47%13,182 527 Twin City Foods 1 16.11%480,429 480,429 Twin City Foods 1 18.49%227,937 227,937 Twin City Foods 0.16 15.71%133,853 852,270 Twin City Foods 225.00 13.24%118,638 527 Reser's New Plant 1 10.24%305,456 305,456 Reser's New Plant 1 11.12%137,128 137,128 Reser's New Plant 0.10 10.47%89,236 852,270 Reser's New Plant 150.00 8.82%79,092 527 Simplot 1 18.15%541,193 541,193 Simplot 1 22.91%282,488 282,488 Simplot 0.11 11.42%97,357 852,270 Simplot 306.00 18.00%161,348 527 Grimmway 1 13.25%395,214 395,214 Grimmway 1 6.42%79,123 79,123 Grimmway 0.21 21.37%182,161 852,270 Grimmway 254.00 14.94%133,930 527 Darigold WW 1 10.09%300,978 300,978 Darigold WW 1 0.00%- - Darigold WW 0.13 13.29%113,265 852,270 Darigold WW 356.00 20.94%187,712 527 Total 7.00 100.00%2,981,630$ 425,947$ Total 7.00 100.00%1,232,980$ 176,140$ Total 1.00 100.00%852,270$ 852,270$ Total 1700.00 100.00%896,380$ 527$ FUTURE DEBT SERVICE 2,408,688$ FUTURE DEBT SERVICE - New Storage 2,408,688$ 100.00%FUTURE DEBT SERVICE - Operational Flexibility -$ FUTURE DEBT SERVICE - Phase 1 -$ 22.16%FUTURE DEBT SERVICE - Farm Upgrades -$ Allocation Allocation Allocation Allocation Allocation Allocation Accounts Future Debt Service Winter Storage (Phase 2) Updated Winter Storage (Phase 2) Operational Flexibility Permitted Flow (with COW Permitted Flow (with COW Pasco Processing 1.00 0.00%-$ -$ Pasco Processing 0.00 0.00%-$ -$ Pasco Processing 80.00 19.00%-$ -$ Pasco Processing 384.00 22.59%-$ -$ Pasco Processing 384.00 22.59%-$ -$ Freeze Pack 1.00 0.00%- - Freeze Pack 0.00 0.00%- - Freeze Pack 0.00 0.00%- - Freeze Pack 25.00 1.47%- - Freeze Pack 25.00 1.47%- - Twin City Foods 1.00 1.81%43,636 43,636 Twin City Foods 5.00 1.81%43,636 8,727 Twin City Foods 10.00 2.38%- - Twin City Foods 225.00 13.24%- - Twin City Foods 225.00 13.24%- - Reser's New Plant 1.00 5.43%130,907 130,907 Reser's New Plant 15.00 5.43%130,907 8,727 Reser's New Plant 50.00 11.88%- - Reser's New Plant 150.00 8.82%- - Reser's New Plant 150.00 8.82%- - Simplot 1.00 27.54%663,262 663,262 Simplot 76.00 27.54%663,262 8,727 Simplot 101.00 23.99%- - Simplot 306.00 18.00%- - Simplot 306.00 18.00%- - Grimmway 1.00 0.00%- - Grimmway 0.00 0.00%- - Grimmway 0.00 0.00%- - Grimmway 254.00 14.94%- - Grimmway 254.00 14.94%- - Darigold WW 1.00 65.22%1,570,884 1,570,884 Darigold WW 180.00 65.22%1,570,884 8,727 Darigold WW 180.00 42.76%- - Darigold WW 356.00 20.94%- - Darigold WW 356.00 20.94%- - Total 7.00 100.00%2,408,688$ 344,098 Total 276.00 100.00%2,408,688$ 8,727 Total 421.00 100.00%-$ - Total 1700.00 100.00%-$ - Total 1700.00 100.00%-$ - $ Allocation Unit Cost $ Allocation Class Unit Cost Class % Class Class $ Allocation Monthly Unit Cost Class $ Allocation Unit Cost $ Allocation Unit CostClass$ Allocation Unit Cost Class $ Allocation Unit Cost% % Class % $ Allocation Unit Cost $ Allocation Unit Cost Class %Class % Unit Cost% $ Allocation FCS GROUP (425) 867-1802 Page 35of 47 Customer Pa g e 3 9 5 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Burnham Pass Through Costs Remaining City Costs Flow 4,397,888$ Flow 908,324$ Flow 3,489,563$ Allocation Allocation Class Allocation $ Allocation Unit Cost Permitted Flow (cumulative annual) Permitted Flow (cumulative annual) Permitted Flow (cumulative annual) Pasco Processing 384.00 24.00%1,055,493$ 2,749$ Pasco Processing 384.00 24.00%217,998$ 568$ Pasco Processing 384.00 24.00%837,495$ 2,181$ Freeze Pack 25.00 1.56%68,717 2,749 Freeze Pack 25.00 1.56%14,193 568 Freeze Pack 25.00 1.56%54,524 2,181 Twin City Foods 225.00 14.06%618,453 2,749 Twin City Foods 225.00 14.06%127,733 568 Twin City Foods 225.00 14.06%490,720 2,181 Reser's New Plant 150.00 9.38%412,302 2,749 Reser's New Plant 150.00 9.38%85,155 568 Reser's New Plant 150.00 9.38%327,147 2,181 Simplot 306.00 19.13%841,096 2,749 Simplot 306.00 19.13%173,717 568 Simplot 306.00 19.13%667,379 2,181 Grimmway 254.00 15.88%698,165 2,749 Grimmway 254.00 15.88%144,196 568 Grimmway 254.00 15.88%553,968 2,181 Darigold WW 256.00 16.00%703,662 2,749 Darigold WW 256.00 16.00%145,332 568 Darigold WW 256.00 16.00%558,330 2,181 Total 1600.00 100.00%4,397,888$ 2,748.68$ Total 1600.00 100.00%908,324$ 567.70$ Total 1600.00 100.00%3,489,563$ 2,180.98$ Nitrogen 554,912$ Nitrogen 517,865$ Nitrogen 37,047$ Allocation Allocation Class Allocation %$ Allocation Unit Cost Avg. N Load (ppd) Avg. N Load (ppd) Avg. N Load (ppd) Pasco Processing 600 17.32%96,099$ 160.17$ Pasco Processing 600 17.32%89,684$ 149.47$ Pasco Processing 600 17.32%6,416$ 10.69$ Freeze Pack 140 4.04%22,423 160.17 Freeze Pack 140 4.04%20,926 149.47 Freeze Pack 140 4.04%1,497 10.69 Twin City Foods 620 17.90%99,303 160.17 Twin City Foods 620 17.90%92,673 149.47 Twin City Foods 620 17.90%6,630 10.69 Reser's New Plant 345 9.96%55,257 160.17 Reser's New Plant 345 9.96%51,568 149.47 Reser's New Plant 345 9.96%3,689 10.69 Simplot 490 14.13%78,418 160.17 Simplot 490 14.13%73,183 149.47 Simplot 490 14.13%5,235 10.69 Grimmway 120 3.46%19,220 160.17 Grimmway 120 3.46%17,937 149.47 Grimmway 120 3.46%1,283 10.69 Darigold WW 1,150 33.19%184,191 160.17 Darigold WW 1,150 33.19%171,894 149.47 Darigold WW 1,150 33.19%12,297 10.69 Total 3,465 100.00%554,912$ 160.17$ Total 3,465 100.00%517,865$ 149.47$ Total 3,465 100.00%37,047$ 10.69$ TSS 775,804$ TSS -$ TSS 775,804$ Allocation Allocation Class Allocation %$ Allocation Unit Cost Avg. TSS Load (ppd) Avg. TSS Load (ppd) Avg. TSS Load (ppd) Pasco Processing 14,040 24.10%186,992$ 13.32$ Pasco Processing 14,040 24.10%-$ -$ Pasco Processing 14,040 24.10%186,992$ 13.32$ Freeze Pack 320 0.55%4,262 13.32 Freeze Pack 320 0.55%- - Freeze Pack 320 0.55%4,262 13.32 Twin City Foods 13,580 23.31%180,865 13.32 Twin City Foods 13,580 23.31%- - Twin City Foods 13,580 23.31%180,865 13.32 Reser's New Plant 7,310 12.55%97,358 13.32 Reser's New Plant 7,310 12.55%- - Reser's New Plant 7,310 12.55%97,358 13.32 Simplot 14,830 25.46%197,514 13.32 Simplot 14,830 25.46%- - Simplot 14,830 25.46%197,514 13.32 Grimmway 5,840 10.03%77,780 13.32 Grimmway 5,840 10.03%- - Grimmway 5,840 10.03%77,780 13.32 Darigold WW 2,330 4.00%31,032 13.32 Darigold WW 2,330 4.00%- - Darigold WW 2,330 4.00%31,032 13.32 Total 58,250 100.00%775,804$ 13.32$ Total 58,250 100.00%-$ -$ Total 58,250 100.00%775,804$ 13.32$ BOD - Expense 949,441$ BOD - Expense 910,217$ BOD - Expense 39,224$ Allocation Allocation Class Allocation %$ Allocation Unit Cost Avg. BOD Load w adjst (ppd) Avg. BOD Load w adjst (ppd) Avg. BOD Load w adjst (ppd) Pasco Processing 26,500 19.97%189,602$ 7.15$ Pasco Processing 26,500 19.97%181,769$ 6.86$ Pasco Processing 26,500 19.97%7,833$ 0.30$ Freeze Pack 1,600 1.21%11,448 7.15 Freeze Pack 1,600 1.21%10,975 6.86 Freeze Pack 1,600 1.21%473 0.30 Twin City Foods 37,000 27.88%264,727 7.15 Twin City Foods 37,000 27.88%253,791 6.86 Twin City Foods 37,000 27.88%10,936 0.30 Reser's New Plant 10,000 7.54%71,548 7.15 Reser's New Plant 10,000 7.54%68,592 6.86 Reser's New Plant 10,000 7.54%2,956 0.30 Simplot 24,200 18.24%173,146 7.15 Simplot 24,200 18.24%165,993 6.86 Simplot 24,200 18.24%7,153 0.30 Grimmway 15,800 11.91%113,046 7.15 Grimmway 15,800 11.91%108,376 6.86 Grimmway 15,800 11.91%4,670 0.30 Darigold WW 17,600 13.26%125,924 7.15 Darigold WW 17,600 13.26%120,722 6.86 Darigold WW 17,600 13.26%5,202 0.30 Total 132,700 100.00% 949,441$ 7.15$ Total 132,700 100.00% 910,217$ 6.86$ Total 132,700 100.00% 39,224$ 0.30$ Class % Class % Class % Class % Unit Cost $ Allocation Unit Cost $ Allocation Unit Cost $ Allocation Unit Cost Class $ Allocation $ Allocation Unit Cost % % $ Allocation Unit Cost Class Unit Cost Class % $ Allocation Unit Cost Class % % $ Allocation FCS GROUP (425) 867-1802 Page 36of 47 Customer Pa g e 3 9 6 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) RNG Credit (1,890,547)$ Allocation Burnham calculates a base revenue of $350k from RNG sales - this level of revenue assumes average BOD (plus adjustment factor) - 10% or 13,000 ppd Avg. BOD Load (ppd) Pasco Processing 26,500 19.97%(377,539)$ (14.25)$ Any credit will be applied based on actual BOD ppd sent to plant by each processor, over their planned average PPD Freeze Pack 1,600 1.21%(22,795) (14.25) Twin City Foods 37,000 27.88%(527,131) (14.25) Reser's New Plant 10,000 7.54%(142,468) (14.25) Simplot 24,200 18.24%(344,772) (14.25) Grimmway 15,800 11.91%(225,099) (14.25) Darigold WW 17,600 13.26%(250,743) (14.25) Total 132,700 100.00% (1,890,547)$ (14.25)$ Headworks 2,187,402$ Allocation Max Month Flow (MGD) Pasco Processing 2.50 29.21%638,844$ 255,538$ Freeze Pack 0.11 1.29%28,109 255,538$ Twin City Foods 1.80 21.03%459,968 255,538$ Reser's New Plant 0.41 4.79% 104,770 255,538$ Simplot 1.25 14.60%319,422 255,538$ Grimmway 1.65 19.28%421,637 255,538$ Darigold WW 0.84 9.81%214,652 255,538$ FLOW 50% Total 8.56 100.00%2,187,402$ 255,538$ Percent Allocation 40%Percent Allocation 60% LRAD 6,027,837$ LRAD - Existing Customers - FLOW 1,205,567$ LRAD - New Customers - FLOW 1,808,351$ Allocation Allocation Allocation Accounts Annual Flow (Existing Customers) Annual Flow (Future Customers) Pasco Processing 13.80%831,805$ Pasco Processing 384 39.22%472,868$ 1,231.43$ Pasco Processing 0 0.00%-$ #DIV/0! Freeze Pack 0.87%52,457 Freeze Pack 25 2.55%30,786 1,231.43 Freeze Pack 0 0.00%- - Twin City Foods 12.91%778,229 Twin City Foods 225 22.98%277,071 1,231.43 Twin City Foods 0 0.00%- - Reser's New Plant 7.36%443,946 Reser's New Plant 115 11.75%141,614 1,231.43 Reser's New Plant 35 5.64%101,920 2,912.00 Simplot 17.48%1,053,967 Simplot 230 23.49%283,228 1,231.43 Simplot 76 12.24%221,312 2,912.00 Grimmway 23.12%1,393,556 Grimmway 0 0.00%- - Grimmway 254 40.90%739,648 2,912.00 Darigold WW 24.45%1,473,876 Darigold WW 0 0.00%- - Darigold WW 256 41.22%745,472 2,912.00 Total 0 100.00%6,027,837$ Total 979 100.00%1,205,567$ 1,231.43$ Total 621 100.00%1,808,351$ 2,912.00$ Class % $ Allocation Unit CostClass % Class % Class % $ Allocation Unit Cost $ Allocation Unit Cost $ Allocation Unit Cost Class % $ Allocation Unit Cost FCS GROUP (425) 867-1802 Page 37of 47 Customer Pa g e 3 9 7 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) BOD 50% Percent Allocation 40%Percent Allocation 60% LRAD - Existing Customers - BOD 1,205,567$ LRAD - Future Customers - BOD 1,808,351$ Allocation Class Allocation %$ Allocation Unit Cost BOD (Existing Cust) BOD (Future Cust) Pasco Processing 26,500 29.77%358,937$ 13.54$ Pasco Processing 0 0.00%-$ #DIV/0! Freeze Pack 1,600 1.80%21,672 13.54 Freeze Pack 0 0.00%- - Twin City Foods 37,000 41.57%501,158 13.54 Twin City Foods 0 0.00%- - Reser's New Plant 7,667 8.61%103,844 13.54 Reser's New Plant 2,333 5.34%96,569 41.39 Simplot 16,239 18.25%219,957 13.54 Simplot 7,961 18.22%329,470 41.39 Grimmway 0 0.00%- - Grimmway 15,800 36.16%653,908 41.39 Darigold WW 0 0.00%- - Darigold WW 17,600 40.28%728,404 41.39 Total 89,006 100.00%1,205,567$ 13.54$ Total 43,694 100.00%1,808,351$ 41.39$ $ Allocation Unit CostClass % FCS GROUP (425) 867-1802 Page 38of 47 Customer Pa g e 3 9 8 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) RNG 2,667,315$ Allocation Avg. BOD Load (ppd) Pasco Processing 26,500 19.97%532,659$ 20.10$ Freeze Pack 1,600 1.21%32,161 20.10 Twin City Foods 37,000 27.88%743,713 20.10 Reser's New Plant 10,000 7.54%201,003 20.10 Simplot 24,200 18.24%486,428 20.10 Grimmway 15,800 11.91%317,585 20.10 Darigold WW 17,600 13.26%353,766 20.10 Total 132,700 100.00%2,667,315$ 20.10$ Percent Allocation 25%Percent Allocation 75% Nitrogen Removal 3,232,318$ Nitrogen Removal - Existing Customers 808,080$ Nitrogen Removal - New Customers 2,424,239$ Allocation Allocation Allocation Accounts TN Load (Existing Cust)TN Load (Future Cust) Pasco Processing 7.68%248,117$ Pasco Processing 600 30.70%248,117$ 413.53$ Pasco Processing 0 0.00%-$ #DIV/0! Freeze Pack 1.79%57,894 Freeze Pack 140 7.16%57,894 413.53 Freeze Pack 0 0.00%- - Twin City Foods 7.93%256,388 Twin City Foods 620 31.73%256,388 413.53 Twin City Foods 0 0.00%- - Reser's New Plant 7.38%238,575 Reser's New Plant 265 13.54%109,378 413.53 Reser's New Plant 81 5.33%129,196 1,604.92 Simplot 12.16%393,090 Simplot 330 16.87%136,302 413.53 Simplot 160 10.59%256,788 1,604.92 Grimmway 5.96%192,591 Grimmway 0 0.00%- - Grimmway 120 7.94%192,591 1,604.92 Darigold WW 57.10%1,845,663 Darigold WW 0 0.00%- - Darigold WW 1,150 76.13%1,845,663 1,604.92 Total 0 100.00%3,232,318$ Total 1,954 100.00%808,080$ 413.53$ Total 1,511 100.00%2,424,239$ 1,604.92$ Allocation Summary Pasco Processing 101,860$ 907,087$ -$ -$ 1,055,493$ 96,099$ 186,992$ 189,602$ (377,539)$ 638,844$ 831,805$ 532,659$ 248,117$ 4,411,020$ Freeze Pack 101,860 51,273 - - 68,717 22,423 4,262 11,448 (22,795) 28,109 52,457 32,161 57,894 407,809 Twin City Foods 101,860 480,429 43,636 - 618,453 99,303 180,865 264,727 (527,131) 459,968 778,229 743,713 256,388 3,500,440 Reser's New Plant 101,860 305,456 130,907 - 412,302 55,257 97,358 71,548 (142,468) 104,770 443,946 201,003 238,575 2,020,516 Simplot 101,860 541,193 663,262 - 841,096 78,418 197,514 173,146 (344,772) 319,422 1,053,967 486,428 393,090 4,504,625 Grimmway 101,860 395,214 - - 698,165 19,220 77,780 113,046 (225,099) 421,637 1,393,556 317,585 192,591 3,505,555 Darigold WW 101,860 300,978 1,570,884 - 703,662 184,191 31,032 125,924 (250,743) 214,652 1,473,876 353,766 1,845,663 6,655,744 Total 713,021$ 2,981,630$ 2,408,688$ -$ 4,397,888$ 554,912$ 775,804$ 949,441$ (1,890,547)$ 2,187,402$ 6,027,837$ 2,667,315$ 3,232,318$ 25,005,708$ 2024 Revenue Requirement Matches Allocation Summary - Condensed Phases 1 and 4 Phase 2 Phase 2 City Monthly Burnham Monthly Customer Phase 3 March Phase 3 Today Difference Pasco Processing 1,140,596$ 476,167$ 228,443$ 202,476$ -$ -$ 2,047,683$ 170,640$ 2,740,876$ (377,539)$ (832,144)$ 1,531,193$ 127,599 3,578,876$ Pasco Processing 2,448,000$ 1,531,193$ (916,807)$ Freeze Pack 162,616 30,137 7,954 13,182 - - 213,889 17,824 216,715 (22,795) (50,243) 143,677 11,973 357,567 Freeze Pack - 143,677 143,677 Twin City Foods 791,012 227,937 133,853 118,638 43,636 - 1,315,076 109,590 2,712,494 (527,131) (1,161,861) 1,023,502 85,292 2,338,578 Twin City Foods 2,126,000 1,023,502 (1,102,498) Reser's New Plant 533,010 137,128 89,236 79,092 130,907 - 969,373 80,781 1,193,611 (142,468) (314,017) 737,126 61,427 1,706,499 Reser's New Plant 1,431,000 737,126 (693,874) Simplot 979,141 282,488 97,357 161,348 663,262 - 2,183,596 181,966 2,665,801 (344,772) (759,920) 1,561,109 130,092 3,744,705 Simplot 1,773,000 1,561,109 (211,891) Grimmway 739,562 79,123 182,161 133,930 - - 1,134,776 94,565 2,595,878 (225,099) (496,146) 1,874,633 156,219 3,009,409 Grimmway 1,010,000 1,874,633 864,633 Darigold WW 708,721 - 113,265 187,712 1,570,884 - 2,580,583 215,049 4,325,905 (250,743) (552,669) 3,522,492 293,541 6,103,075 Darigold WW 4,191,000 3,522,492 (668,508) Total 5,054,658$ 1,232,980$ 852,270$ 896,380$ 2,408,688$ -$ 10,444,976$ 16,451,279$ (1,890,547)$ (4,167,000)$ 10,393,732$ 20,838,708$ 12,979,000$ 10,393,732$ (2,585,268)$ 1,370,940$ (157,546)$ (347,250)$ 866,144$ All Charges Tax Credit Allocation Feb 2024 Baseline Difference Notes Original Baseline Difference Pasco Processing 298,240$ 13,351,976$ 3,578,876$ 4,163,255$ (584,380)$ Reductions in flow, BOD, TN & TSS 4,324,470$ (745,595)$ Freeze Pack 29,797 38,313,079 357,567 297,687 59,880 Updates to TN and TSS (832,144)$ 300,915 56,652 Twin City Foods 194,882 14,890,167 2,338,578 2,364,559 (25,980) Reallocation of costs based on updates to others (50,243) 2,656,175 (317,596) Reser's New Plant 142,208 16,298,403 1,706,499 1,738,276 (31,777) Reallocation of costs based on updates to others (1,161,861) 1,321,973 384,526 Simplot 312,059 32,781,317 3,744,705 2,799,039 945,666 Increases in BOD, TN, TSS & Winter Storage (314,017) 3,008,572 736,133 Grimmway 250,784 14,080,003 3,009,409 2,911,737 97,672 Updated TSS & BOD slightly (759,920) 3,279,544 (270,136) Darigold WW 508,590 45,922,860 6,103,075 6,564,156 (461,081) Reallocation of costs based on updates to others (496,146) 6,726,741 (623,666) Total 1,736,559$ 20,838,708$ 20,838,708$ 20,838,708$ -$ (552,669) 21,618,390$ (779,682)$ (4,167,000)$ Annual R/R 3,225,336$ Total with R/R Spread 10 Years of Amortization Pasco Processing 4,132,800 41,670,000$ Total Credit Freeze Pack 412,909 Twin City Foods 2,700,535 Reser's New Plant 1,970,625 Simplot 4,324,296 Grimmway 3,475,193 Darigold WW 7,047,686 Total w/ R&R Funding 24,064,044 Existing Debt Service TotalNitrogen Removal Base Treatment Costs Annual Total Avg. BOD Load (ppd) Tax Credit Allocation Phase 3Sub Total Sub Total Phase 3 Class Per Month Per MG Class Existing City O&M Existing Debt Service Class Customer RNG Credit Headworks LRAD RNG Class % $ Allocation Unit Cost Class % $ Allocation Unit Cost Class Class % RNG CreditFuture Debt Service - New Storage Flow Nitrogen TSS BOD - Expense $ Allocation Unit Cost IPS Debt Service Depreciation Funding Future Debt Service Future Debt Service - Operational Total System Costs2023 Revenue Bond Debt % $ Allocation Unit Cost FCS GROUP (425) 867-1802 Page 39of 47 Customer Pa g e 3 9 9 o f 4 6 4 City of Pasco PWRF Rate Study & COSA Comparison of Costs Pasco Processing 3,578,876$ 4,411,020$ 5,402,129$ 10,516,442$ 8,306,954$ Freeze Pack 357,567 407,809 529,613 983,279 788,523 Twin City Foods 2,338,578 3,500,440 4,774,434 8,454,195 6,839,125 Reser's New Plant 1,706,499 2,020,516 2,286,081 4,258,482 3,383,460 Simplot 3,744,705 4,504,625 5,014,213 9,045,797 7,183,388 Grimmway 3,009,409 3,505,555 3,171,895 6,150,808 4,862,106 Darigold WW 6,103,075 6,655,744 5,717,891 10,343,015 8,079,220 Total 20,838,708$ 25,005,708$ 26,896,255$ 49,752,018$ 39,442,776$ Difference 4,167,000$ 1,890,547$ FT Credit RNG Credit 15 Years 20 Years Blended Non Contract Non Contract 8,488$ 8,488$ 8,488$ 727$ 949$ 727$ 541$ 1,215$ 927$ 91$ 208$ 159$ 1.11$ 1.11$ 1.11$ 21,295$ 53,401$ 39,822$ 4.16$ 4.80$ 4.44$ Actual ppd: BOD Blended Rates Storage per MG required Design Flow per MG Design: Nitrogen (ppd) TSS (ppd) Max Month Flow (Headworks) Monthly Fixed Rate Processor WTAs with Tax & RNG Credit WTAs w/o Federal Tax Credit (with RNG Credit) Code w/ 15 Yr. Payback (No Credits) Code w/ 20 Yr. Payback (No Credits) Code w/o Tax & RNG Credit Page 400 of 464 Allocation Factors Storage Pasco Processing - - - Freeze Pack - - - Twin City Foods 5 5 5 Reser's New Plant 15 15 15 Simplot 76 76 76 Grimmway - - - Darigold WW 180 180 180 Flow Pasco Processing 384 384 384 Freeze Pack 25 25 25 Twin City Foods 225 225 225 Reser's New Plant 150 150 150 Simplot 306 306 306 Grimmway 254 254 254 Darigold WW 256 256 256 Nitrogen Pasco Processing 600 600 600 Freeze Pack 140 140 140 Twin City Foods 620 620 620 Reser's New Plant 345 345 345 Simplot 490 490 490 Grimmway 120 120 120 Darigold WW 1,150 1,150 1,150 TSS Pasco Processing 14,040 14,040 14,040 Freeze Pack 320 320 320 Twin City Foods 13,580 13,580 13,580 Reser's New Plant 7,310 7,310 7,310 Simplot 14,830 14,830 14,830 Grimmway 5,840 5,840 5,840 Darigold WW 2,330 2,330 2,330 Max Month Pasco Processing 2.50 2.50 2.50 Freeze Pack 0.11 0.11 0.11 Twin City Foods 1.80 1.80 1.80 Reser's New Plant 0.41 0.41 0.41 Simplot 1.25 1.25 1.25 Grimmway 1.65 1.65 1.65 Darigold WW 0.84 0.84 0.84 BOD Pasco Processing 26,500 26,500 26,500 Freeze Pack 1,600 1,600 1,600 Twin City Foods 37,000 37,000 37,000 Reser's New Plant 10,000 10,000 10,000 Simplot 24,200 24,200 24,200 Grimmway 15,800 15,800 15,800 Darigold WW 17,600 17,600 17,600 Page 401 of 464 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Unit Costs - Sample Processor Notes: 1. To determine blended rates, all functional costs were spread proportionately across assumed design totals. This process will blend rates that are more specific to each Processor (i.e., existing debt or existing/new cost allocation for LRAD). PWRF Contractual Monthly Rates 2024 Blended Rates Description Input Description Costs Monthly Fixed Rate 8,488$ Monthly Fixed Rate 8,488$ Storage per MG required 727$ Storage (MG)25.00 Storage 18,182$ Design Flow per MG 541$ Design Flow (MG)150.00 Design Flow 81,199$ Design ppd:Design Criteria:Design: Nitrogen 91$ Nitrogen (ppd)900.00 Nitrogen 81,984$ TSS 1.11$ TSS (ppd)2,500.00 TSS 2,775$ Max Month Flow (Headworks - MGD)21,295$ Max Month Flow (MGD)1.10 Max Month Flow 23,424$ Actual ppd:Actual Contributions:Actual ppd: BOD 4.16$ BOD 25,000.00 BOD 104,099$ BOD (10 year FTC adjustment)-$ Total (monthly)320,150$ Total (annual)3,841,803$ Sample Processor Calcs Sample Processor Costs (monthly) FCS GROUP (425) 867-1802 Page 42of 47 Sample Bill Pa g e 4 0 2 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Unit Costs - Contractual Accounts IPS Debt Service Winter Storage (Phase 2) Updated Permitted Flow (cumulative annual) MG Avg. N Load (ppd) Avg. TSS Load (ppd) Avg. BOD Load w adjst (ppd) Max Month Flow (MGD) Annual Flow (Existing Customers) Annual Flow (Future Customers) BOD (Existing Cust)BOD (Future Cust)TN Load (Existing Cust)TN Load (Future Cust)Permitted Flow (with COW Existing Debt Service Pasco Processing 1 0.27 0.00 384.00 600 14,040 26,500 2.50 384 0 26,500 0 600 0 384 38.62% Freeze Pack 1 0.01 0.00 25.00 140 320 1,600 0.11 25 0 1,600 0 140 0 25 2.44% Twin City Foods 1 0.16 5.00 225.00 620 13,580 37,000 1.80 225 0 37,000 0 620 0 225 18.49% Reser's New Plant 1 0.10 15.00 150.00 345 7,310 10,000 0.41 115 35 7,667 2,333 265 81 150 11.12% Simplot 1 0.11 76.00 306.00 490 14,830 24,200 1.25 230 76 16,239 7,961 330 160 306 22.91% Grimmway 1 0.21 0.00 254.00 120 5,840 15,800 1.65 0 254 0 15,800 0 120 254 6.42% Darigold WW 1 0.13 180.00 256.00 1,150 2,330 17,600 0.84 0 256 0 17,600 0 1,150 356 0.00% Total 7 1.00 276.00 1600.00 3,465 58,250 132,700 8.56 979 621 89,006 43,694 1,954 1,511 1,700 100.00% Notes: 1. For simplicity, existing and IPS debt service has been allocated as permitted flow. This gives all processors a different cost per MG. 2. LRAD and Nitrogen Removal for Phase III were allocated to existing and new flows differently. This also creates different per lb rates by customer 3. All rates are monthly PWRF Contractual Monthly Rates 2024 Common to All Monthly Fixed Rate 8,488$ Storage per MG required 727$ Design Flow per MG 229.06$ Design ppd: Nitrogen 13.35$ TSS 1.11$ BOD 1.08$ BOD (10 year FTC adjustment)(2.62)$ Max Month Flow (Headworks)21,295$ Design Flow Rates for Existing & IPS Debt Design Flow MG Pasco Processing 152.91$ Freeze Pack 126.97$ Twin City Foods 134.00$ Reser's New Plant 125.76$ Simplot 103.44$ Grimmway 85.72$ Darigold WW 36.87$ Design Rates for LRAD Design Flow MG Pasco Processing 103$ Freeze Pack 103$ Twin City Foods 103$ Reser's New Plant 135$ Simplot 137$ Grimmway 243$ Darigold WW 243$ Design BOD ppd Pasco Processing 1.13$ Freeze Pack 1.13$ Twin City Foods 1.13$ Reser's New Plant 1.67$ Simplot 1.89$ Grimmway 3.45$ Darigold WW 3.45$ Design Nitrogen ppd Pasco Processing 34.46$ Freeze Pack 34.46$ Twin City Foods 34.46$ Reser's New Plant 57.63$ Simplot 66.91$ Grimmway 133.74$ Darigold WW 133.74$ Class Allocation FCS GROUP (425) 867-1802 Page 43of 47 Unit Costs-Contract Pa g e 4 0 3 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Unit Costs - Blended Accounts Winter Storage (Phase 2) Updated Permitted Flow (cumulative annual) MG Avg. N Load (ppd) Avg. TSS Load (ppd) Avg. BOD Load w adjst (ppd) Max Month Flow (MGD) Pasco Processing 1 0.00 384.00 600 14,040 26,500 2.50 Freeze Pack 1 0.00 25.00 140 320 1,600 0.11 Twin City Foods 1 5.00 225.00 620 13,580 37,000 1.80 Reser's New Plant 1 15.00 150.00 345 7,310 10,000 0.41 Simplot 1 76.00 306.00 490 14,830 24,200 1.25 Grimmway 1 0.00 254.00 120 5,840 15,800 1.65 Darigold WW 1 180.00 256.00 1,150 2,330 17,600 0.84 Total 7 276.00 1600.00 3,465 58,250 132,700 8.56 Customer 713,021$ IPS Debt Service 852,270$ Future Debt Service (Winter Storage)2,408,688$ Flow Costs 4,397,888$ Nitrogen Costs 554,912$ TSS Costs 775,804$ BOD Costs 949,441$ RNG Credit (1,890,547)$ Headworks Costs 2,187,402$ LRAD - Existing Flows 1,205,567$ LRAD - New Flows 1,808,351$ LRAD - Existing BOD Loads 1,205,567$ LRAD - New BOD Loads 1,808,351$ RNG Costs 2,667,315$ Nitrogen Removal - Existing Loads 808,080$ Nitrogen Removal - New Loads 2,424,239$ Federal Tax Credit (4,167,000)$ Existing Debt 1,232,980$ 2023 Revenue Bond 896,380$ Check -$ Notes: 1. To determine blended rates, all functional costs were spread proportionately across assumed design totals. This process will blend rates that are more specific to each Processor (i.e., existing debt or existing/new cost allocation for LRAD). PWRF Contractual Monthly Rates 2024 Blended Rates Description Input Description Costs Monthly Fixed Rate 8,488$ Monthly Fixed Rate 8,488$ Storage per MG required 727$ Storage (MG)180.00 Storage 130,907$ Design Flow per MG 541$ Design Flow (MG)256.00 Design Flow 138,579$ Design ppd:Design Criteria:Design: Nitrogen 91$ Nitrogen (ppd)1,150.00 Nitrogen 104,757$ TSS 1.11$ TSS (ppd)2,330.00 TSS 2,586$ Max Month Flow (Headworks - MGD)21,295$ Max Month Flow (MGD)0.84 Max Month Flow (Headworks - MGD)17,888$ Actual ppd:Actual Contributions:Actual ppd: BOD 4.16$ BOD 17,600.00 BOD 73,286$ BOD (RNG Credit)(1.19)$ BOD (10 year FTC adjustment)(46,056)$ BOD (10 year FTC adjustment)(2.62)$ Total (monthly)430,435$ Total (annual)5,165,222$ Class Allocation Sample Processor Calcs Sample Processor Costs (monthly) FCS GROUP (425) 867-1802 Page 44of 47 Unit Costs-Blended Pa g e 4 0 4 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Risk Premium Consolidated Years = 5 Consolidated Years = 10 Consolidated Years = 15 Consolidated Years = 20 2024 13,806,000$ 1,748,650$ 2,717,560$ 2024 92,631,337$ 6,603,278$ 9,205,973$ 2024 50,358,068$ 3,634,684$ 5,035,695$ 2024 34,992,932$ 2,587,771$ 3,547,269$ 2024 26,086,731$ 2,014,440$ 2,717,560$ 2025 14,427,270 1,747,060 2,717,560 2025 93,252,607 6,601,689 9,205,973 2025 50,979,338 3,633,095 5,035,695 2025 35,614,202 2,586,182 3,547,269 2025 26,708,001 2,012,851 2,717,560 2026 14,860,088 1,746,815 2,717,560 2026 93,685,425 6,601,443 9,205,973 2026 51,412,156 3,632,849 5,035,695 2026 36,047,020 2,585,936 3,547,269 2026 27,140,819 2,012,605 2,717,560 2027 15,305,891 1,750,880 2,717,560 2027 94,131,228 6,605,509 9,205,973 2027 51,857,959 3,636,915 5,035,695 2027 36,492,823 2,590,002 3,547,269 2027 27,586,621 2,016,671 2,717,560 x 2028 15,765,067 1,743,694 2,717,560 2028 94,590,405 6,598,322 9,205,973 2028 52,317,135 3,629,728 5,035,695 2028 36,952,000 2,582,816 3,547,269 2028 28,045,798 2,009,484 2,717,560 2029 16,238,019 1,744,819 2,717,560 2029 - - - 2029 52,790,087 3,630,853 5,035,695 2029 37,424,952 2,583,940 3,547,269 2029 28,518,750 2,010,609 2,717,560 2030 16,725,160 1,749,227 2,717,560 2030 - - - 2030 53,277,228 3,635,261 5,035,695 2030 37,912,092 2,588,348 3,547,269 2030 29,005,891 2,015,017 2,717,560 2031 17,226,915 1,746,760 2,717,560 2031 - - - 2031 53,778,983 3,632,794 5,035,695 2031 38,413,847 2,585,882 3,547,269 2031 29,507,646 2,012,551 2,717,560 2032 17,743,722 1,747,320 2,717,560 2032 - - - 2032 54,295,790 3,633,354 5,035,695 2032 38,930,655 2,586,441 3,547,269 2032 30,024,453 2,013,110 2,717,560 x 2033 18,276,034 1,750,769 2,717,560 2033 - - - 2033 54,828,102 3,636,803 5,035,695 2033 39,462,966 2,589,890 3,547,269 2033 30,556,765 2,016,559 2,717,560 2034 18,824,315 1,746,806 2,717,560 2034 - - - 2034 - - - 2034 40,011,247 2,585,927 3,547,269 2034 31,105,046 2,012,596 2,717,560 2035 19,389,044 1,749,206 2,717,560 2035 - - - 2035 - - - 2035 40,575,977 2,588,327 3,547,269 2035 31,669,775 2,014,996 2,717,560 2036 19,970,716 1,749,006 2,717,560 2036 - - - 2036 - - - 2036 41,157,648 2,588,127 3,547,269 2036 32,251,447 2,014,796 2,717,560 2037 20,569,837 1,744,470 2,717,560 2037 - - - 2037 - - - 2037 41,756,770 2,583,591 3,547,269 2037 32,850,568 2,010,260 2,717,560 x 2038 21,186,932 1,747,707 2,717,560 2038 - - - 2038 - - - 2038 42,373,865 2,586,829 3,547,269 2038 33,467,663 2,013,498 2,717,560 2039 21,822,540 1,748,266 2,717,560 2039 - - - 2039 - - - 2039 - - - 2039 34,103,271 2,014,056 2,717,560 2040 22,477,217 1,744,566 2,717,560 2040 - - - 2040 - - - 2040 - - - 2040 34,757,947 2,010,356 2,717,560 2041 23,151,533 1,748,110 2,717,560 2041 - - - 2041 - - - 2041 - - - 2041 35,432,264 2,013,901 2,717,560 2042 23,846,079 1,747,090 2,717,560 2042 - - - 2042 - - - 2042 - - - 2042 36,126,810 2,012,880 2,717,560 2043 24,561,461 1,747,674 2,717,560 2043 - - - 2043 - - - 2043 - - - 2043 36,842,192 2,013,464 2,717,560 2044 25,298,305 854,563 - 2044 - - - 2044 - - - 2044 - - - 2044 - - - 2045 26,057,254 851,300 - 2045 - - - 2045 - - - 2045 - - - 2045 - - - 2046 26,838,972 852,343 - 2046 - - - 2046 - - - 2046 - - - 2046 - - - 2047 27,644,141 851,804 - 2047 - - - 2047 - - - 2047 - - - 2047 - - - 2048 28,473,465 855,371 - 2048 - - - 2048 - - - 2048 - - - 2048 - - - 2049 29,327,669 852,866 - 2049 - - - 2049 - - - 2049 - - - 2049 - - - 2050 30,207,500 854,469 - 2050 - - - 2050 - - - 2050 - - - 2050 - - - 2051 31,113,724 - - 2051 - - - 2051 - - - 2051 - - - 2051 - - - 2052 32,047,136 - - 2052 - - - 2052 - - - 2052 - - - 2052 - - - 2053 33,008,550 - - 2053 - - - 2053 - - - 2053 - - - 2053 - - - Total 666,190,561$ 40,921,609$ 54,351,210$ Total 468,291,003$ 33,010,241$ 46,029,863$ Total 525,894,847$ 36,336,335$ 50,356,947$ Total 578,118,998$ 38,800,012$ 53,209,039$ Total 621,788,457$ 40,264,703$ 54,351,210$ - - - - - - - - - - - - NPV $407,777,368 $28,941,059 $40,430,438 Discount Rate 3.00%3.00%3.00% Remaining Liability Intervals (NPV) 5 394,126,687$ 24,273,142$ 32,442,061$ 10 365,520,680 18,860,342 23,181,342 15 317,803,986 12,586,825 12,445,631 20 245,614,614 5,315,810 - Year 2020 & 2023 Revenue Bonds Future Debt Year Phase 3 Burnham Treatment Costs Year Phase 3 Burnham Treatment Costs 2020 & 2023 Revenue Bonds Future DebtPhase 3 Burnham Treatment Costs 2020 & 2023 Revenue Bonds Future Debt Year Future Debt Phase 3 Burnham Treatment Costs 2020 & 2023 Revenue Bonds Future Debt Year Phase 3 Burnham Treatment Costs 2020 & 2023 Revenue FCS GROUP (425) 867-1802 Page 45of 47 Risk Premium Pa g e 4 0 5 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) City of Pasco PWRF Rate Study & COSA Unit Costs - Risk Premium Years to Recover Costs 20 PWRF Monthly Rates Sample Annual Bill Blended Rates Non Contract Blended No Risk Grimmway Non Contract Contractual Monthly Fixed Rate 8,488$ 8,488$ Monthly Fixed Rate 101,860$ Storage per MG required 727$ 727$ 0.00%Storage per MG required - Design Flow per MG 927$ 541$ 71.17%Design Flow per MG 2,824,236 Design:Design ppd: Nitrogen (ppd)159$ 91$ 74.26%Nitrogen 228,581 TSS (ppd)1.11$ 1.11$ TSS 77,780 Max Month Flow (Headworks)39,822$ 21,295$ 87.01%Max Month Flow (Headworks)788,485 Actual ppd:Actual ppd: BOD 4.44$ 4.16$ 6.55%BOD 841,163 FTC Credit (2.62)$ BOD (10 year FTC adjustment)- RNG Credit (1.19)$ Annual Total 4,862,106$ 3,009,409$ 62% Increase 1.62 Ratio Accounts Winter Storage (Phase 2) Updated Permitted Flow (cumulative annual) MG Avg. N Load (ppd) Avg. TSS Load (ppd) Avg. BOD Load w adjst (ppd)Max Month Flow (MGD) Pasco Processing 1 0.00 384.00 600 14,040 26,500 2.50 Freeze Pack 1 0.00 25.00 140 320 1,600 0.11 Twin City Foods 1 5.00 225.00 620 13,580 37,000 1.80 Reser's New Plant 1 15.00 150.00 345 7,310 10,000 0.41 Simplot 1 76.00 306.00 490 14,830 24,200 1.25 Grimmway 1 0.00 254.00 120 5,840 15,800 1.65 Darigold WW 1 180.00 256.00 1,150 2,330 17,600 0.84 Total 7 276.00 1600.00 3,465 58,250 132,700 8.56 Customer 713,021$ IPS & 2023 Debt Service 2,014,440$ Future Debt Service (Winter Storage)2,408,688$ Flow Costs 4,397,888$ Nitrogen Costs 554,912$ TSS Costs 775,804$ BOD Costs 949,441$ RNG Credit (1,890,547)$ Headworks Costs 4,090,565$ LRAD - Existing Flows 10,145,154$ LRAD - New Flows -$ LRAD - Existing BOD Loads 3,621,254$ LRAD - New BOD Loads -$ RNG Costs 2,494,014$ Nitrogen Removal - Existing Loads 6,044,616$ Nitrogen Removal - New Loads -$ Federal Tax Credit (4,167,000)$ Existing Debt 1,232,980$ 2023 Revenue Bond Class Allocation 2024 FCS GROUP (425) 867-1802 Page 46of 47 Unit Cost-Risk Premium Pa g e 4 0 6 o f 4 6 4 Pasco PWRF 2023 COSA v25 - 10 4 2024 - Unit Cost Comparison (004) Notes: 1. To determine blended rates, all functional costs were spread proportionately across assumed design totals. This process will blend rates that are more specific to each Processor (i.e., existing debt or existing/new cost allocation for LRAD). 15.50%42.71%9.45%9.45%22.90% Future Debt 2020/2023 Debt Burnham Treatment Headworks LRAD Flow LRAD BOD LRAD RNG LRAD Nitrogen 5 8,159,641$ 6,603,278$ 93,677,669$ 14,517,366$ 36,005,025$ 12,851,784$ 8,851,226$ 21,452,269$ 10 4,463,348 3,634,684 50,930,415 7,892,761 19,575,112$ 6,987,222$ 4,812,210 11,663,110 15 3,144,094 2,587,771 35,396,108 5,485,387 13,604,499$ 4,856,047$ 3,344,436 8,105,740 20 2,408,688 2,014,440 26,395,603 4,090,565 10,145,154$ 3,621,254$ 2,494,014 6,044,616 Total Future Debt w/ CERB Loan 11.37%percentage of future debt related to CERB loan for spread to RNG system90% 9,205,973 1,046,332 5,035,695 572,347 3,547,269 403,175 2,717,560 308,872 Full LRAD Alloc 40,005,583$ 21,750,124 15,116,110 11,272,393 FCS GROUP (425) 867-1802 Page 47of 47 Unit Cost-Risk Premium Pa g e 4 0 7 o f 4 6 4 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Presentation of Proposed Changes to the Rental License Program (10 minutes) I. REFERENCE(S): PowerPoint Presentation Draft Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: by established Program, Inspection Housing Pasco's of City The Rental ordinance in 1997 and codified in Pasco Municipal Code 5.60.030, is designed to ensure the safety and habitability of rental properties within the city. The program identifies and addresses issues that could endanger tenant health or safety, including structural problems, exposure to weather, plumbing and sanitation defects, lack of water or heating, hazardous electrical systems, and fire safety violations. The State of Washington identifies rules and procedures for rental property inspections local by municipalities in RCW 59.18.125. Rental inspection programs are not required in the State of Washington. At the August 19, 2024, regular Council meeting, Inspection Services staff delivered a presentation outlining the City’s rental inspection program. The discussion focused on the current inspection requirements, complementary approaches to improve compliance and efficiency, and the importance of Page 408 of 464 maintaining a proactive approach to ensure the safety and habitability of rental properties. This presentation provided Council with a comprehensive overview of and updates exploring for stage potential set and program the the alternatives. V. DISCUSSION: The proposed ordinance introduces significant updates to the City’s rental inspection program to enhance efficiency, incentivize compliance, and better allocate resources. Under the new provisions, properties that fail an initial inspection but pass a reinspection will be placed on a three-year inspection cycle. Properties that pass two consecutive three-year cycles without requiring reinspection's will transition to a six-year cycle. Additionally, properties that already have two consecutive passed inspections will automatically be placed on the six-year inspection cycle. Newly constructed buildings will also begin on a six-year cycle, with inspections starting from the date the certificate of occupancy is issued. The ordinance also incorporates additional changes to improve clarity and alignment with state and local standards. These include adopting exemptions outlined in RCW 59.18.040, updating definitions to include immediate family, aligning standards compliance with the City’s adopted Maintenance Code, and revising requirements to allow property owners to hire qualified inspectors instead of relying solely on City inspectors. Together, these changes aim to streamline attention properties to direct reduce costs, program, the and requiring greater oversight, enhancing the effectiveness of the City’s rental inspection program. As an alternative, the City Council may consider discontinuing the rental inspection program entirely if it is determined that it no longer serves its intended purpose. In this case, staff assigned to the program would be reassigned to other City programs to address existing workloads. Should the Council choose to pursue this alternative, staff will prepare and present an ordinance to formally repeal the program from the City code. This alternative provides need long-term the evaluate the Council for flexibility and to effectiveness of the program. Page 409 of 464 December 2nd, 2024 Pasco City Council Workshop Pa g e 4 1 0 o f 4 6 4 Rental Licensing & Inspection Program Proposed Updates December 2nd, 2024 Pasco City Council Pa g e 4 1 1 o f 4 6 4 Background Inspection Process Proposed Changes Approaches 01 02 03 04 Pa g e 4 1 2 o f 4 6 4 Background 4 Pa g e 4 1 3 o f 4 6 4 Council Goals 2024-2025 Promote a high-quality of life through programs and services Promote and encourage economic vitality The City of Pasco's Rental Licensing and Inspection Program ensures safe, habitable living conditions for tenants while maintaining property values and neighborhood stability through proactive inspections and accountability of property owners and tenants. Pasco Council Goals & Rental Housing 5 Pa g e 4 1 4 o f 4 6 4 Who does the program benefit? Property Owners and Managers Tenants Neighbors Fire & Police Community A Mutually Beneficial Program 6 Pa g e 4 1 5 o f 4 6 4 Dwelling units must comply with Pasco Municipal Code Title 5.60 and the International Property Maintenance Code (IPMC) to obtain a City of Pasco rental License. •Structural Stability •Structural Maintenance •Plumbing and Sanitation •Lack of hot water or water service •Hazardous or inoperable heating and ventilation •Defective, hazardous or missing electrical service and wiring •Defective and inadequate emergency escapes and exits •Anything which increases the risk of fire •Violations of other applicable codes, rules, or regulations Priority Habitability Issues 7 Pa g e 4 1 6 o f 4 6 4 Proactive v. Reactive Inspections 8 Program Type Pros Cons Relation to Targets Proactive Programs Prevent issues before they arise, Cost- effective long-term, Improves overall compliance Requires upfront investment, May not address all emerging issues, Longer implementation Aligns with long-term targets, Reduces the need for reactive measures, Builds a sustainable system Reactive Programs Addresses immediate problems, Quick response High cost over time, Only solves issues after they occur, Can lead to repeated problems Supports short-term targets, Temporary solutions to immediate concerns, Doesn't contribute to long-term goals Pa g e 4 1 7 o f 4 6 4 Inspection Process 9 Pa g e 4 1 8 o f 4 6 4 What is the current process? •Initial licensing •Once every two years thereafter •Upon complaint by the tenant RCW 59.18 •When requested by a landlord Inspection 10 What is inspected? •Dwelling units and accessory structures •Life, safety and health •Inspection Results o Pass o Pass with Corrections o Fail Inspections are conducted by a Code Officer or an approved 3rd party inspector Pa g e 4 1 9 o f 4 6 4 Obstructed Emergency Response 11 Pa g e 4 2 0 o f 4 6 4 Gas Fueled Appliance Ventilation & Safety Bi-product: Carbon Monoxide 12 Pa g e 4 2 1 o f 4 6 4 Laundry, Bath & Kitchen Ventilation 13 Interconnected Laundry & Bath Ventilation Dryer Vented Through Kitchen Exhaust Ducting Pa g e 4 2 2 o f 4 6 4 Pests & Sanitation 14 Pa g e 4 2 3 o f 4 6 4 Hazardous Stairs & Railings 15 Pa g e 4 2 4 o f 4 6 4 Electrical Hazards & Defects 16 Pa g e 4 2 5 o f 4 6 4 Proposed Changes 17 Pa g e 4 2 6 o f 4 6 4 Inspection Cycle Based on Compliance •Applicants failing an initial inspection but passing a reinspection or pass with corrections will be placed on a three-year inspection cycle. •After passing two consecutive three-year cycles without corrections or reinspections, they will transition to a six-year inspection cycle. •Applicants who pass their inspection without requiring a reinspection will be placed directly on a six-year cycle. •Newly constructed buildings will start on a six-year inspection cycle, beginning on the date the certificate of occupancy is issued. •The certificate of inspection must be submitted no later than 90 days after the property is due for inspection based on the assigned inspection cycle. Failures: •Applicants who fail any inspection but pass a reinspection will be placed on a three-year inspection cycle. •They will remain on this cycle until achieving two consecutive passed inspections. Code Changes 18 Pa g e 4 2 7 o f 4 6 4 Upon ordinance implementation: •Applicants with two consecutive passed inspections will move to the six-year inspection cycle, with their next inspection scheduled six years after their most recent inspection. •Applicants who have not passed two consecutive inspections will be placed on the three-year inspection cycle. Once they successfully pass two consecutive inspections without requiring a reinspection, they will transition to the six-year cycle. Transition for Current Licenses 19 Pa g e 4 2 8 o f 4 6 4 Further Code revisions Incorporated exemptions as outlined in RCW 59.18.040 Expanded definitions to include "immediate family“ Aligned standards compliance with the City's currently adopted Maintenance Code Revised requirements to allow hiring a qualified inspector in place of utilizing City inspectors Additional Updates 20 Pa g e 4 2 9 o f 4 6 4 Continued Improvement & the Alternative Path 21 Pa g e 4 3 0 o f 4 6 4 Continued Improvements to the Program 22 Expanded Public Outreach and Education Campaigns •Landlord & Tenant Information Sessions •Social Media & Educational Literature •Create list of approved 3rd Party Inspectors •Partner with schools, management companies, rental & tenant associations •Host stakeholder meetings to prompt innovative solutions Pa g e 4 3 1 o f 4 6 4 Program Discontinuation •Council Decision: If the City Council determines that the program is no longer serving its intended purpose, it may be discontinued. •Staff Reallocation: Staff currently assigned to the program will be reassigned to other programs, helping to alleviate workload pressures in other areas. •Next Steps: If Council chooses to discontinue the program, Staff will prepare and present an ordinance to formally remove it from the City code. Alternative Path 23 Pa g e 4 3 2 o f 4 6 4 Harvard Joint Center for Housing Studies - Housing in the Context of Neighborhood Decline: Link to article (Harvard Joint Center for Housing Studies) (HUD User). Urban Institute - Mapping Neighborhoods with the Highest Risk of Housing Instability and Homelessness: Link to article (Urban Institute). Urban Institute – Proactive Rental Inspections Can Help Improve Tenant Health Outcomes: Link to article (Urban Institute). Rental Housing Association of Washington & Landlord Association - Summary of Washington State Rental Programs: Link to Page (RHAWA) RentalAssistance.net on Rental Assistance Programs: This resource discusses various rental assistance programs and their impact on housing stability, which is relevant to reactive rental strategies. Read more here (Rental Assistance). Urban Institute: How Housing Affects Children’s Outcomes. Read the article here (Housing Matters). New America: Stable Housing is Unequivocally Good for Children and Families. Read the article here (New America). Why Emergency Escape & Rescue Openings Matter – UL FSRI Home Furnishings Comparison (Natural vs. Synthetic) Rental Licensing & Inspection Program - Ordinance 3231 United States Court of Appeals, Ninth Circuit, Columbia Basin Apartment Ass’n v. City of Pasco 2001 The Court of Appeals of Washington, Division Three, City of Pasco v. Shaw 2005 Supreme Court of Washington, Review Ordinance 3231, City of Pasco v. Shaw - 2007 International Property Maintenance Code (IPMC) Rental Licensing & Inspection Program Fee Increase – Ordinance 4321 Pasco Municipal Code – Rental Licensing & Inspections 5.60 Resources & Information 24 Pa g e 4 3 3 o f 4 6 4 Pa g e 4 3 4 o f 4 6 4 Ordinance – Amending PMC 5.60.010, 5.60.020 & 5.60.030 - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING PASCO MUNICIPAL CODE SECTIONS 5.60.010, 5.60.020 & 5.60.030 RELATED TO RENTAL LICENSE. WHEREAS, the City is committed to ensuring the safety, habitability, and quality of rental properties for all residents; and WHEREAS, the current inspection cycle does not adequately differentiate between properties that consistently meet inspection standards and those that require additional oversight; and WHEREAS, the City seeks to incentivize compliance by extending the inspection interval for properties that demonstrate a consistent history of meeting all minimum habitability standards during each inspection and WHEREAS, allocating inspection resources to properties requiring greater attention will enhance the City’s ability to address safety and maintenance concerns effectively; and WHEREAS, extending the inspection cycle for compliant properties allows the City to streamline its operations and promote efficient use of staff time and resources; and WHEREAS, these changes will enhance the City’s ability to address safety and maintenance concerns while promoting equitable and efficient oversight of rental properties. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. PMC 5.60.010 is hereby amended and shall read as follows: 5.60.010 License required. No person shall make available for rent, or rent, lease, or let to the public, any residential dwelling as defined below without securing and maintaining a current business license as required by this chapter, unless exempt under RCW 59.18.040. Section 2. PMC 5.60.020 entitle “Definitions” is hereby amended and shall read as follows: 5.60.020 Definitions. (1) Rentals – Dwelling Units. Any person renting or making available for rent to the public any dwelling unit shall secure a license registering each dwelling unit, including a certification warranting that each such dwelling unit complies with the Page 435 of 464 Ordinance – Amending PMC 5.60.010, 5.60.020 & 5.60.030 - 2 Uniform Housing Code Currently adopted International Property Maintenance Code as adopted by the City and does not present conditions that endanger or impair the health or safety of the tenants. For the purpose of this section “dwelling unit” shall mean any structure or part of a structure which is used as a home, residence or sleeping place by one, two or more persons maintaining a common household, including but not limited to single-family residences and units of multiplexes, apartment buildings and mobile homes. The annual business license fee shall be payable for each independent business property location and the first unit and an additional fee for each additional rental dwelling unit available for rental to the public by the applicant. All revenues received from this business license fee shall be utilized exclusively for the cost of issuance of the license provided herein and the administration of this title. Issuance of the business license shall be contingent upon submission of the certification, inspection, as required by this chapter, payment of the fee provided above and compliance with this chapter. (2) Immediate Family – Includes state registered domestic partner, spouse, parents, grandparents, children, including foster children, siblings, and in-laws. Section 3. PMC Section 5.60.030 entitled “Inspection Required” is hereby amended and shall read as follows: 5.60.030 Inspection Required (1) As a condition for the issuance of a license provided by this chapter, the applicant shall provide a certificate of inspection that all of the applicant’s rental dwelling units, per parcel identified in the application, comply with the standards of the Uniform Housing Code currently adopted International Property Maintenance Code and do not present conditions that endanger or impair the health or safety of a tenant, including: (a) Structural members that are insufficient in size or strength to carry imposed loads with safety; (b) Exposure of the occupants to the weather; (c) Plumbing and sanitation defects that directly expose the occupants to the risk of illness or injury; (d) Lack of water, including hot water facilities that are not adequate to supply heat and water and hot water as reasonably required by the tenant, (e) Heating or ventilation systems that are not functional or are hazardous; Page 436 of 464 Ordinance – Amending PMC 5.60.010, 5.60.020 & 5.60.030 - 3 (f) Defective, hazardous, or missing electrical wiring or electrical service; (g) Defective or inadequate exits that increase the risk of injury to occupants; (h) Violations Conditions that increase the risks of fire; or (i) Violations of other applicable codes, rules or regulations. (2) Timing of Inspection. To facilitate the availability of an inspection by each applicant, at the time of application, an inspection renewal period shall be established upon which the applicant shall submit its initial certificate of inspection. and the corresponding renewal date of the certificate of inspection two years thereafter. The renewal periods shall be divided into calendar quarters over a two-year period and assigned to the applicant at the time of registration on a rotational basis. The first calendar quarter shall commence on the first day of January, terminating on the last day of March; the second calendar quarter shall commence on the first day of April and terminate on the last day of June; the third calendar quarter shall commence on the first day of July and terminate on the last day of September; and the fourth calendar quarter shall commence on the first day of October and terminate on the last day of December, with one half of which shall be scheduled in years ending with an even digit and the remaining half being scheduled in years ending with an odd digit. Certificates of inspection shall be submitted no later than the last day of the applicant’s assigned calendar quarter. During the first two years of the implementation of the ordinance codified in this chapter, the applicant shall be granted a provisional business license pending the timely submission of its initial certificate of inspection. (a) Rental properties that fail an initial inspection but subsequently pass a reinspection or pass with corrections shall be required to submit a certificate of inspection every three years. Upon passing two consecutive three-year cycles, they will transition to a six-year inspection cycle. Rental properties that pass initial inspection without corrections shall be placed directly on a six-year inspection cycle. Newly constructed buildings entering their initial period of occupancy shall be placed on the six-year inspection cycle, commencing from the date the certificate of occupancy is issued. Page 437 of 464 Ordinance – Amending PMC 5.60.010, 5.60.020 & 5.60.030 - 4 (b) Rental Properties that fail an inspection but subsequently pass a reinspection or pass with corrections at anytime shall be placed on a three- year inspection cycle and remain on this cycle until achieving two consecutive passed inspections. (c) Upon implementation of the ordinance codified in this chapter, rental properties with two consecutive passed inspections shall be placed on a six- year inspection cycle, with their next inspection scheduled six years after the date of their most recent inspection. Applicants without two consecutive passed inspections shall be placed on a three-year inspection cycle until achieving two consecutive passed inspections. (d) The certificate of inspection shall be submitted no later than 90 days after the property is due for inspection based on the assigned inspection cycle. Per RCW 59.18.125 (1)(b) A rental property inspected by a government agency or other qualified inspector within the previous twenty- four months may provide proof of that inspection which the City may accept in lieu of a certificate of inspection. (3) Inspectors. The applicant shall submit a certificate of inspection based upon the physical inspection of the dwelling units conducted not more than 90 days prior to the date of the certificate of inspection and compliance certified by the following: (a) A City of Pasco Code Enforcement Officer; (b) Inspectors certified by the United States Department of Housing and Urban Development for grant-required inspections; (c) Certified private inspectors approved by the City upon evidence of completion of formal training, including the passing of an examination administered by the National Association of Housing and Redevelopment Officials (NAHRO), the American Association of Code Enforcement (AACE) or other comparable professional association as approved by the Director of Community and Economic Development, which approval or denial shall be subject to appeal to the Code Enforcement Board; (d) A Washington-licensed structural engineer; Page 438 of 464 Ordinance – Amending PMC 5.60.010, 5.60.020 & 5.60.030 - 5 (e) A Washington-licensed architect. (f) a Washington state licensed home inspector or an American society of home inspectors certified inspector; (add per updates to RCW 59.18.030 (26) “Qualified Inspector” All inspection certifications shall be submitted on forms provided by the City or approved by the United States Department of Housing and Urban Development. NOTE: RCW 59.18.125 (6)(e) If a rental property owner chooses to hire a qualified inspector other than a municipal housing code enforcement officer, and a selected unit of the rental property fails the initial inspection, both the results of the initial inspection and any certificate of inspection must be provided to the local municipality. (4) Other Inspections. Nothing herein shall preclude such additional inspections as may be conducted pursuant to the tenant remedy provided by RCW 59.18.0115 of the Residential Landlord-Tenant Act, at the request or consent of a tenant, or issued pursuant to a warrant. [Ord. 3231 § 2, 1997; Code 1970 § 5.78.020.] 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. Page 439 of 464 Ordinance – Amending PMC 5.60.010, 5.60.020 & 5.60.030 - 6 PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 202_. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: _____________________________ Page 440 of 464 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Regular Meeting: 12/2/24 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Purchase of Water Rights (5 minutes) I. REFERENCE(S): Draft Purchase and Sale Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Approximately $1,369,500 IV. HISTORY AND FACTS BRIEF: For the City to serve its residents and businesses with enough municipally treated water, the City must have an appropriate amount of water rights that allow the withdrawal of large amounts of water from the Columbia River or ground water. Currently the City is close to utilizing both irrigation and potable water rights approved by the Department of Ecology (Ecology) and needs to acquire additional water rights to support future development. V. DISCUSSION: The purchase and sale agreement (PSA) with Columbia East LLC attached to this agenda report is near to its final form with some minor and non substantial changes expected before final signatures if Council authorizes City Manager to execute the contract. The PSA outlines purchase of approximately 315 acre feet of water rights from Columbia East LLC for $4,150 per acre feet. For standard homes in1/4 acre lots, this water right can serve 427 new homes in the City of Pasco. Page 441 of 464 Staff has also applied for a grant with Department of Ecology to reduce the impact to rate payers as the City does not have funds collected from past developments to purchase water right to sustain those developments. We are waiting for Ecology's decision on the matter. City has been collecting water rights fees, albeit at much lower rate than needed for acquisition of water rights. There is currently $2.3 million between water and irrigation utility to purchase additional water rights. Staff is recommending utilization of these funds to purchase the water rights from Columbia East LLC. If staff is successful in receiving the grants from Ecology, the expenses of this purchase will be reimbursed by the grant, preserving the $2.3 million for to acquire additional water rights. Page 442 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 1 of 20 WATER RIGHTS PURCHASE AND SALE AGREEMENT THIS WATER RIGHTS PURCHASE AND SALE AGREEMENT (“Agreement”) is entered into between the City of Pasco, a municipal corporation (“Pasco” or “the City" or “Buyer”) and Columbia East, LLC, a limited liability company ("Seller"), each a “Party” and collectively the "Parties" hereto, as of the Effective Date (defined below). RECITALS WHEREAS, Seller is the sole owner of the water right described by the Washington State Department of Ecology (“Ecology”) as Certificate No. CG3-01349(E)@3. Water Right Certificate No. CG3-01349(E)@3 authorizes the use of 812.22 gallons per minute (“gpm”) and 315.38 acre-feet per year (“afy”) of water for irrigation purposes. Water Right Certificate No. CG3-01349(E)@3 is more specifically described in Exhibit A (“Seller’s Certificate”); WHEREAS, Seller’s Certificate was used on and was appurtenant to land that was owned solely by Seller, which land is more specifically described in Exhibit B (“Seller’s Former Land”); WHEREAS, at the time in 2021 when Seller sold and deeded the Seller’s Former Land it specifically retained and severed from the land the Seller’s Certificate, and the Title Report for said conveyance showed at that time there were no encumbrances on said Seller’s Former Land (“2021 Title Report”); WHEREAS, the City has authority under RCW 35.92.010 to purchase water rights and is interested in purchasing a portion of Seller’s Certificate of up to 812.22 gpm and 315.38 afy, to the extent that such quantity is determined to be valid under the laws of the State of Washington and approved for change and transfer for use by the City (the “Water Right”); WHEREAS, Buyer and Seller wish to accomplish all of the foregoing on the terms set forth in this Agreement; NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein, and the mutual promises and covenants set forth herein, the receipt and sufficiency of which are acknowledged by the Parties, the Seller and Buyer agree as follows: AGREEMENT 1. Purchase and Sale. Seller agrees to sell and to convey to Buyer and Buyer agrees to purchase and acquire all of Seller’s right, title, and interests in the Water Right on the terms and conditions stated in this Agreement. The purchase of the Water Right pursuant to this Agreement is expressly conditioned on the receipt of all necessary final approval(s) from Ecology, which approval(s) are beyond the time for filing of any appeal and contain Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 443 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 2 of 20 terms and conditions for change and transfer that are satisfactory to Buyer in its sole discretion. For clarity and without limitation, Buyer’s obligation to close is subject to Buyer’s termination rights set forth in Section 11 below. 2. Purchase Price. The purchase price for the Water Right is $4,150 for each acre foot per year of water determined by the Ecology to be valid and authorized under the Seller’s Certificate (“Purchase Price”). 3. Escrow. 3.1 Within five (5) business days of the Effective Date, Seller shall: 3.1.1 Open an escrow account with Pioneer Title Insurance Company (“Escrow Company”). The individual listed below is the designated officer for the Escrow Company: Escrow Company Officer: Courtney Mitchell Escrow Officer/LPO Pioneer Title Company, LLC 1697 N. Western Avenue Wenatchee, WA 98801 courtney@pioneertitlecompany.com 3.1.2 Deliver a copy of this Agreement to the Escrow Company. 3.2 Within 30 days following the conclusion of the Due Diligence Period, defined Section 5 below, to the Buyer’s satisfaction, Buyer shall deposit $50,000 into Escrow, which deposit and any interest earned in Escrow shall be credited against the final Purchase Price at Closing (“Earnest Money”). 3.3 The Escrow Company shall hold the Earnest Money in an interest-bearing account until Closing, unless disbursed earlier pursuant to the terms of this Agreement. 4. Condition of Title and Title Review. 4.1 Condition of Title. Seller warrants that it has not encumbered Seller’s Certificate with any liens or claims and will provide a bargain and sale deed to that effect at Closing. The Parties will conduct title review and complete the title review process before the conclusion of the Due Diligence Period, as defined Section 5 below. After opening of the escrow account, Seller will deliver, at Seller’s cost and expense, documents showing that Seller holds exclusive title to Seller’s Certificate (“Seller’s Documents”). 4.2 Buyer’s Review and Seller’s Obligations. Buyer shall have up to thirty (30) days after receipt of Seller’s Documents to notify Seller in writing of any objections to the condition of title of Seller’s Certificate. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 444 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 3 of 20 4.3 Seller’s Response. If Buyer has objected to the condition of title of Seller’s Certificate, Seller shall have fifteen (15) days after receipt of Buyer’s objections to provide written notice to Buyer that it agrees to cure or cause such objections to be removed on or prior to Closing. 5. Due Diligence. 5.1 Buyer shall have thirty (30) days after Seller’s delivery of supporting documentation to perform a due diligence review of Seller’s Certificate and water use information from the Seller (“Due Diligence Period”). Seller acknowledges that Buyer’s due diligence review of Seller’s Certificate will include evaluation by Buyer and consultation with Ecology as to the nature, extent, quantity, and validity of Seller’s Certificate. 5.2 The Due Diligence Period will commence after Seller has delivered to Buyer the following items: 5.2.1 The original Columbia East certificate. 5.2.2 The Ecology modification order approving the transfer to May (2014). 5.2.3 The water right agreement signed by all parties to the Columbia East certificate (1921). 5.2.4 The statutory warranty deed between Project Oyster, LLC (Amazon) reserving ownership of the Seller’s Certificate (1921). 5.2.5 Copy of Superseding Certificate of Water Right G3-01349(E). 5.2.6 Copy of the most recent modification order and ACQ following the second transfer to May. 5.2.7 A true and correct copy of the 2021 Title Report. 5.2.8 Any other documents and information in the possession or control of Seller and pertaining to the Seller’s Certificate. If Buyer is unsatisfied with the due diligence investigation, it may terminate this Agreement with no further commitment or liability to the Seller. If Buyer is satisfied with the due diligence investigation, Buyer will provide a notice to Seller to proceed (“Notice to Proceed”) with application to change and transfer the Water Right and will deposit Earnest Money into Escrow as described in Section 3.2 above. 6. Regulatory Approval Contingency. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 445 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 4 of 20 6.1 After Buyer has sent a Notice to Proceed to Seller, Buyer and Seller will have eight (8) months to seek regulatory approval of the change and transfer of the Water Right for Buyer’s purposes (the “Transfer Application Period”) through an application for change and transfer with the Franklin County Water Conservancy Board. Buyer or Seller may extend the Transfer Application Period if the application has been filed the application and is in process, and the extension is in writing. 6.2 Buyer will lead the application process for requesting and obtaining approval of the change and transfer of the Water Right, and Buyer will file the application and be responsible for managing the application process. Buyer shall pursue the application(s) diligently and with the goal of maximizing the water quantities to be changed and transferred. Buyer will pay the application fees of Franklin County Water Conservancy Board and all other costs associated with the application process. 6.3 Seller will cooperate with Bu yer in obtaining necessary regulatory approval(s) and will, at Buyer’s request, sign any applications necessary for such Ecology approval consistent with this Agreement. Within fifteen (15) days of mutual acceptance Buyer and Seller will meet and confer regarding application completion and assembly of supporting information and documentation. Seller will provide all necessary and useful information, data, maps, and other material to support Buyer’s application to change and a transfer a portion of Seller’s Certificate. The Parties agree to work in good faith to provide evidence of water use under the Water Right and to support the application(s). Buyer will provide draft(s) of all other pertinent documentation for review and approval by Seller, which review and approval will not be unreasonably withheld or delayed by Seller. Buyer shall keep Seller informed of the status of application review and processing and will share communications and correspondence with the Franklin County Water Conservancy Board. In response to any questions or requests for additional information from the Franklin County Water Conservancy Board or Ecology, Seller will cooperate with Buyer by responding to questions, providing additional information or documents, and taking other reasonable actions necessary to obtain the Approval. Seller shall keep Buyer fully apprised of the process and of all meetings, and Seller shall have the right to participate in all aspects of the process necessary or appropriate to protect Seller’s interests. Seller or Seller’s representatives can request additional information from Buyer regarding the application process, and Buyer will timely respond to Buyer’s request. 6.4 Seller reserves the right to dispute, challenge, or appeal Ecology’s decision(s) at its own risk and cost expense, unless the Parties agree otherwise by written agreement. Buyer’s obligation to proceed to Closing and to purchase the Water Right is expressly contingent on obtaining final approval of the change and transfer to the Water Right on terms and conditions satisfactory to the City. The Buyer shall provide the Seller with a Notice stating any objections to terms and conditions in the recommended decision of the Water Conservancy Board, and if it fails to do so the Buyer is deemed to accept the same terms and conditions in the Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 446 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 5 of 20 final Ecology approval and shall proceed to Closing; provided, however, that the foregoing shall not apply in the event that the final Ecology decision changes or modifies the recommended decision of the Water Conservancy Board. 7. Seller’s Obligation Not to Encumber or Convey. Until the transaction closes, Seller shall not enter into, or cause to be entered into, any written or oral option agreement, sale agreement, lease, or other contract or agreement to convey or otherwise encumber Seller’s Certificate, or any portion thereof. 8. Seller’s Warranties. For the purposes of inducing Buyer to consummate the transactions contemplated hereby Seller represents and warrants to Buyer, as of the date hereof and as of the Closing Date, as follows: 8.1 Authority. Seller is a limited liability company qualified to do business in the State of Washington. Seller was the sole owner of Seller’s Former Land and Seller’s Certificate and has full power, authority and legal right to execute, deliver and perform this Agreement, and all other documents and certificates contemplated hereby. The Seller has duly authorized the execution, delivery and performance of this Agreement, and has duly authorized the execution and delivery of this Agreement by the person signing below. 8.2 Enforceable Agreement. This Agreement constitutes the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms. 8.3 Title. At Closing, the Seller will deliver good, marketable, and indefeasible fee simple title to the Water Right being purchased, and the same will be free and clear of all material liens, claims, encumbrances, and defects of title except as approved by Buyers under Section 4 of this Agreement. There are no leases, rental agreements, service contracts, option agreements, mortgages, deeds of trust, or other written or oral commitments, arrangements, agreements, or obligations of any kind affecting the Water Right, except as disclosed by Seller in writing to Buyers. 8.4 Reports. All certificates and documents containing factual information to be delivered by Seller or by Seller’s agents in connection with this Agreement, are and shall, to the best of Seller’s knowledge, be true and correct and do not and shall not contain any untrue statement of material fact or omit to state any material fact the disclosure of which is necessary to make the statements contained therein and herein, in light of the circumstances under which they are made, not misleading. 8.5 No Other Water Rights. No water rights, other than Seller’s Certificate that is the subject of this Agreement, are appurtenant to or available for use on Seller’s Former Land. 8.6 No Takings. To the best of Seller’s knowledge, there are no existing, proposed, or threatened condemnation or eminent domain proceedings that would affect Seller’s Certificate. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 447 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 6 of 20 8.7 No Litigation. To the best of Seller’s knowledge, no litigation, suit, arbitration, claim, or proceeding, at law or equity, judicial, municipal, or administrative, is pending or threatened, which does or could materially affect the purchase, use, or possession of the Water Right, or involve Seller or Buyer due to their respective use of, and interest in, the Water Right, except as disclosed in writing to Buyer. 8.8 No Violation of Agreements. This Agreement and the performance of the Parties hereunder, including, without limitation, the purchase and sale of the Water Right, or any portion thereof, will not violate any written or oral contract, agreement, or instrument to which the Seller is a party or that affects any portion of the Water Right. 8.9 Liquidation/Bankruptcy. None of the following has occurred with respect to Seller’s Former Land or Seller: (1) appointment of a receiver, liquidator, or trustee; (2) institution of any proceeding for dissolution or liquidation; (3) filing or any petition for bankruptcy, or action toward reorganization; (4) notice of default, trustee’s sale, foreclosure or forfeiture. 8.10 Unpaid Bills/Claims. There are no unpaid bills, tax assessments, claims, or liens pending or threatened by mechanics, materialmen, surveyors, or others, recorded or unrecorded in connection with Seller’s Certificate. 8.11 Patriot Act. Neither Seller nor any direct beneficial owner of Seller: (i) is listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) pursuant to Executive Order No. 133224, 66 Fed. Reg. 49079 (September 25, 2001) (the “Order”) and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable orders (such lists are collectively referred to as the “Lists”); (ii) is a person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Orders; or (iii) is owned or controlled by, or acts for or on behalf of, any person or entity on the Lists or any other person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Order. 8.12 Foreign Person. Seller is a “United States person” (as defined in Section 7701(a)(30)(B) or (C) of the Code) for the purposes of the provisions of Section 1445(a) of the Code. 8.13 Survival of Warranties. The warranties in Section 8 shall be deemed restated at Closing and shall survive the Closing and shall be fully effective thereafter. If Seller breaches any warranty, Buyer shall have the rights and may exercise, at its option, any of the remedies, provided under Section 12.2 of this Agreement. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 448 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 7 of 20 9. Buyer’s Warranties. For the purposes of inducing Seller to consummate the transactions contemplated hereby Buyer represents and warrants to Seller, as of the date hereof and as of the Closing Date, as follows: 9.1 Authority. Buyer is a first class city in the State of Washington and has the power to execute this Agreement, and all requisite action has been taken by Buyer in connection with entering into this Agreement, the instruments referenced herein, and the consummation of the transaction(s) contemplated hereby. 9.2 Execution of Agreement. Buyer has duly authorized the execution and delivery of this Agreement by the person signing below. 9.3 Survival of Warranties. The warranties in Section 9 shall survive the Closing and shall be fully effective thereafter. If Buyer breaches any warranty, Seller shall have the rights and may exercise, at its option, any of the remedies, provided under Section 13 of this Agreement. 10. Closing. 10.1 Closing Date. The closing of the Water Right purchase and sale (“Closing”) shall be held and delivery of all items to be made at the Closing under the terms of this Agreement shall be made at the offices of the Escrow Company identified in Paragraph 3.1.1. Each Party shall execute and deliver to the Escrow Company such escrow instructions as may be necessary to implement and coordinate the Closing as set forth in this Agreement. Closing will occur after issuance of all necessary final approval(s) by Ecology, which approval(s) are beyond the time for filing of any appeal, at a mutually agreeable time but in no event later than 100 days after such final decision (“Closing Date”). All documents shall be deemed delivered on the date that the Deed conveying the Water Right is recorded. 10.2 Closing Conditions. The following are “Closing Conditions” for the benefit of Buyer: 10.2.1 The Bargain and Sale Deed is in acceptable form to Buyer and Seller. 10.2.2 All representations and warranties of the Seller shall be true and correct in all material respects at the time of Closing. 10.2.3 Seller shall have performed all of its covenants and obligations hereunder in all material respects, and title shall conform to the requirements of Section 4 of the Agreement. 10.2.4 Ecology shall have issued a final decision as to change and transfer of the Water Right, which final decision is beyond the time for filing of any appeal and is satisfactory in form and substance to Buyer in its sole discretion. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 449 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 8 of 20 Buyer may at any time or times on or before the Closing, in its sole and absolute discretion, waive any of the conditions precedent to Buyer’s obligations under this Section 10 or otherwise and consummate the sale, but any such waiver shall be effective only if contained in a writing signed by Buyer and delivered to Seller. In the event any of the conditions precedent for the benefit of Buyer that are contained in this Agreement are not completely fulfilled and satisfied and not otherwise waived by Buyer pursuant to the terms of the preceding sentence, then in addition to any other rights or remedies Buyer may have, Buyer may terminate its obligation to purchase the Water Right, and (a) the Earnest Money and all accrued interest thereon shall immediately be returned to Buyer by Escrow Company without the necessity of any further instructions from the Parties, (b) Buyer’s obligation to purchase, and Seller’s obligation to sell, the Water Right shall terminate, and (c) neither Party shall have any further obligation to the other except as otherwise provided in this Agreement. 10.3 Seller’s Closing Obligations. At the Closing, Seller will: 10.3.1 Execute, acknowledge and deliver a Bargain and Sale deed to the Water Right in form and substance acceptable to Buyer; 10.3.2 Deliver to Buyer, pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, an affidavit stating that Seller is not a foreign person and providing Seller’s United States taxpayer identification number; 10.3.3 A duly executed and acknowledged real estate excise tax affidavit for the Purchase Price. Seller will pay all real estate excise tax; and 10.3.4 Deliver to Buyer such other instruments or documents as may be required pursuant to the provisions hereof or as mutually agreed by counsel for Seller and Buyer to be necessary to consummate fully the transaction contemplated hereby. 10.4 Buyer’s Closing Obligations. At the Closing, Buyer will: 10.4.1 Deliver to Seller cash or funds readily available in the amount of the Purchase Price, less any Earnest Money and other amounts deposited or paid by Buyer to be credited towards the Purchase Price; and 10.4.2 Deliver to Seller such other instruments or documents as may be required pursuant to the terms hereof or mutually agreed by counsel for Seller and Buyer to be necessary to fully consummate the transaction contemplated hereby. 10.5 Allocation of Closing Expenses. The costs of Closing the transaction shall be allocated between Seller and Buyer as follows: 10.5.1. Seller’s Costs. Seller will pay: Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 450 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 9 of 20 (a) One-half of the escrow fees of the Escrow Company; (b) The costs of clearing title and obtaining any other item to be delivered to Buyer at Closing; (c) Any and all property taxes and assessments against Certificate existing as of Closing, whether due and payable before or after such date; (d) The real estate excise tax; and (e) All loans or other sums secured by mortgages, deeds of trust, or otherwise constituting a lien or other encumbrance on the Property at Closing. 10.5.2. Buyer will pay: (a) One-half of the escrow fees of the Escrow Company; and (b) The cost of recording the Bargain and Sale deed and any other documents that Buyer may choose to record. 10.5.3. All other expenses incurred by Seller or Buyer with respect to Closing, including but not limited to attorneys’ fees, shall be borne and paid exclusively by the Party incurring the same unless the Parties expressly agree in writing to the allocation of part or all of such expenses to one of the Parties. 11. Termination Rights. 11.1 Following the final decision of Ecology to approve the change and transfer of the Water Right, the Buyer may terminate this Agreement in the event that Buyer finds, its sole and discretion, that said final decision contains adverse terms and conditions as provided in and subject to the terms in Section 6.4. Adverse terms may include the quantity of the Water Right and the intended purpose of use for the Buyer. In the event that Buyer exercises its right to terminate this Agreement under this Section 11.1, then Buyer will provide Notice to Seller and Escrow Company, whereupon Escrow Company will disburse the Earnest Money to Seller, which will be the sole and exclusive remedy available to Seller. 11.2 The Buyer or Seller may terminate this Agreement in the event that Ecology issues a final decision denying the change and transfer application. 11.3 Following Ecology’s final decision regarding the change and transfer of the Water Right, the Buyer or Seller may terminate this Agreement in the event that any appeals are filed or litigation is commenced regarding such final decision. 11.4 The Buyer or Seller may terminate this Agreement in the event that the Transfer Application Period has expired and Ecology has not issued a final decision. 11.5 If Buyer is not satisfied after the Due Diligence Period and declines to issue a Notice to Proceed, then Buyer or Seller may terminate this Agreement. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 451 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 10 of 20 11.6 If Buyer elects to terminate this Agreement under Sections 11.2, 11.3, or 11.4, then Buyer shall send Notice of the same to Seller and Escrow Company, and the Earnest Money shall be promptly returned to Buyer by the Escrow Company and this Agreement will terminate and be of no further force and effect. 12. Seller’s Defaults. 12.1 Seller’s Defaults. Seller shall be deemed to be in default hereunder in the event Seller fails, for a reason other than Buyer’s default hereunder, to complete the sale of the Property or to meet, comply with, or perform any covenant, agreement or obligation on its part required within the time limits and in the manner required in this Agreement, or there shall have occurred a breach of any representation or warranty made by Seller. 12.2 Buyer’s Remedies. In the event of default by Seller, Buyer may pursue any remedy available at law or equity, including: 12.2.1 Enforcing specific performance of this Agreement; or 12.2.2 Bringing suit for damages. In addition, and without prejudice to the foregoing remedies, Buyer may, if default occurs prior to Closing, terminate this Agreement. In such event, the Earnest Money shall be promptly returned to Buyer by the Escrow Company and this Agreement will terminate and be of no further force and effect. 13. Buyer’s Defaults. 13.1 Buyer’s Defaults. Buyer shall be in default hereunder in the event Buyer fails, for a reason other than Seller’s default hereunder, without legal excuse to complete the purchase of the Property or to meet, comply with, or perform any covenant, agreement or obligation on its part required within the time limits and in the manner required in this Agreement, or there shall have occurred a breach of any representation or warranty made by Buyer; provided that, Seller shall not declare a default or pursue any rights or remedies for breach and default under this Agreement until it delivers written notice of the alleged breach to Buyer and Buyer fails to cure such breach within fifteen (15) days after receiving such notice, provided that if the breach is the failure to close, Buyer shall only have three (3) business days after receiving notice to cure such breach. 13.2 Seller’s Remedies. In the event of default by Buyer, Seller’s sole and exclusive remedy shall be to retain the Earnest Money, to the extent made pursuant to the terms of this Agreement. Receipt of the Earnest Money shall constitute a waiver of any other remedies Seller may have under this Agreement, or at law or equity. 14. Attorneys’ Fees. Should either Party bring an action to enforce or interpret any of the provisions of this Agreement, or to recover damages for the breach hereof, the Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 452 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 11 of 20 substantially prevailing Party will be entitled to receive, in addition to any other relief granted, all reasonable attorney’s fees and costs expended in connection therewith. 15. Governing Law and Venue. This Agreement shall be governed and construed in accordance with the laws of the State of Washington. The venue of any legal action shall be in Franklin County, Washington. 16. Notices. All notices provided for or permitted to be given under this Agreement must be in writing (“Notice”). A Notice will be deemed to have been received: (a) if it is delivered in person or sent by registered or certified mail or by nationally recognized overnight courier, upon receipt as indicated by the date on the signed receipt; (b) if the receiving party rejects or otherwise refuses to accept it, or if it cannot be delivered because of a change in address for which no notice was given, then upon that rejection, refusal, or inability to deliver; or (c) for notice provided via e-mail, upon receipt by the party providing Notice of a response from the other party. A Notice is effective when received, unless the Notice or other communication is received after 5:00 p.m., in which case the Notice will be deemed received at 9:00 a.m. on the next business day. For purposes of Notice, the addresses of the Parties shall be as follows, which may be changed with Notice to the other party: If to Buyer: City of Pasco Richa Sigdel Deputy City Manager City Hall 525 N. 3rd Avenue Pasco, WA 99301 Email: sigdelr@pasco-wa.gov If to Seller: Columbia East, LLC Robert M. Tippett Managing Member PO Box 3027 Pasco, WA 99302 17. Parties Bound. This Agreement is binding upon, shall inure to the benefit of, and shall be enforceable by, the Parties and their respective successors and assigns. 18. Full Understanding, Independent Legal Counsel. The Parties each acknowledge, represent, and agree that they have read this Agreement; that they fully understand the terms thereof; and that it is executed by them after having had an adequate opportunity to consult independent legal counsel. This Agreement was the subject of negotiation between the Parties and therefore any rule of construction requiring that agreements be construed against the drafter shall not apply to the interpretation of this Agreement. 19. Confidentiality. Seller shall hold the existence and terms of this Agreement in strict confidence and shall not disclose the existence or terms of this Agreement, or the fact that Buyer is considering the purchase of the Water Right, to any persons other than those consultants who are assisting the Seller in regard to the purchase and sale, except as required by law. Seller shall inform its employees, representatives, and consultants of the requirements of this confidentiality clause and shall require that they comply with it. This Section shall survive the termination of this Agreement. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 453 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 12 of 20 20. Time of Essence. Time is of the essence of this Agreement. 21. Headings. The headings in this Agreement are for convenience only and shall not be deemed to construe or to limit the meaning of the language of this Agreement. 22. Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, “days” means calendar days, and the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday, or legal holiday. The final day of any such period shall be deemed to end at 5 p.m., Pacific Standard or Daylight time, as applicable. 23. Commissions. 23.1 Seller Authorized Commission. Tippett Company is acting as broker for Seller. Tippett Company does not practice limited dual agency, and in regards to the water right purchase and sale that is the subject of this Agreement, Tippett Company represents only Seller. For disclosure, Charles Laird is a licensed real estate broker in the State of Washington, has an ownership interest in Tippett Company, and Tippett Company has an ownership interest in Columbia East, LLC. Seller agrees to indemnify, defend, and hold Buyer harmless from and against the claims of the foregoing broker and any other brokers, finders or agents claiming that Seller agreed to, entered into, or authorized any finder’s fee or commission in connection with this Agreement or the sale of the Water Right. 23.2 Buyer Authorized Commission. Buyer warrants to Seller that it has not engaged any broker, finder or agent on its behalf in connection with the transactions contemplated in this Agreement. Buyer agrees to indemnify, defend, and hold Seller harmless from and against the claims of any and all brokers, finders or agents claiming that Buyer agreed to, entered into, or authorized any finder’s fee or commission in connection with this Agreement or the sale of the Water Right. 24. Risk of Loss. All risk of loss shall remain with Seller until Closing, including diminution in the quantity of the Water Right through any cause whatsoever, including amendment to laws or regulations. 25. Costs and Expenses. Each Party hereto will bear its own costs and expenses in connection with the negotiation, preparation, and execution of this Agreement , the application contemplated by this Agreement, and in the performance of its duties hereunder. 26. Further Documentation. Each of the Parties agrees to execute, acknowledge, and deliver upon request by the other party any document which the requesting party reasonably deems necessary or desirable to evidence or effectuate the rights herein conferred or to implement or consummate the purposes and intents hereof, so long as such imposes no different or greater burden upon such party than is otherwise imposed hereunder. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 454 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 13 of 20 27. Waiver. A Party may, at any time or times, at its election, waive any of the conditions to its obligations hereunder, but any such waiver shall be effective only if contained in a writing signed by such Party. No waiver shall reduce the rights and remedies of such party by reason of any breach of any other party. No waiver by any party of any breach hereunder shall be deemed a waiver of any other or subsequent breach. 28. Entire Agreement. This Agreement constitutes the entire agreement between Seller and Buyer concerning the purchase and sale of the Water Right and supersedes all prior term sheets, letters of intent, agreements or understandings, written or oral, signed or unsigned concerning sale of the Water Right. 29. No Merger. The obligations contained in this Agreement, except for those specifically discharged in escrow (such as conveyance of title to the Water Right and delivery of money and documents in the escrow), shall not merge with transfer of title but shall remain in effect until fulfilled. 30. Survival of Terms. The terms and provisions of this Agreement shall survive the Closing and shall remain in full force and effect thereafter unless otherwise expressly provided in this Agreement. 31. Severability. If one or more of the provisions of this Agreement or any application thereof shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions or any other application thereof shall in no way be affected or impaired. 32. Modification. No waiver, amendment, extension or variation in the terms of this Agreement shall be valid against a party unless in writing and signed by such party and then only to the extent specifically set forth in the writing. No failure or delay on the part of a party in exercising any right, power or privilege under this Agreement, nor any course of dealing between the Parties, will waive, amend or vary the terms of this Agreement. 33. Force Majeure. In addition to specific provisions of this Agreement, performance by Buyer hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to: war; insurrection; strikes; lockouts; riots; civil disturbances; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; pandemic; quarantine; declarations of emergency; restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; acts or omissions of the other Party; or any other inability or cause beyond the control or without the fault of the Buyer. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the force majeure delay and shall commence to run from the time of the commencement of the cause, if Notice by Buyer is sent to Seller within thirty (30) days of the commencement of the cause. If such Notice is delivered after such thirty (30) day period, the extension period shall commence to run from the date of such notice. Times of performance under this Agreement may also be extended in writing by the mutual agreement of Buyer and Seller. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 455 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 14 of 20 34. Counterparts. This Agreement may be executed in multiple counterparts, all of which together shall constitute one agreement. 35. Effective Date. “Effective Date” means the last date that this Agreement was signed by the Seller and Buyer. 36. Exhibits. The following exhibits attached hereto are incorporated into and made a part of this Agreement as if set forth fully herein: Exhibit A Seller’s Certificate Exhibit B Legal Description of Seller’s Former Land Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 456 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 15 of 20 SELLER: _____________________________ By: Name: Title: STATE OF ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that ______________________ is the person who appeared before me, and that said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: , 2024. Notary Public in and for the State of , residing at My appointment expires: Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 457 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 16 of 20 BUYER: City of Pasco, Washington By:______________________________ Name:____________________________ Title:______________________________ STATE OF ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that ______________________ is the person who appeared before me, and that said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: ______________________, 2024. Notary Public in and for the State of , residing at My appointment expires: Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 458 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 17 of 20 EXHIBIT A SELLER’S CERTIFICATE Summary of Water Right CG3-01349(E)@3 Name on Water Right Columbia East, LLC Priority Date July 11, 1970 Instantaneous Quantity 812.22 gallons per minute Annual Quantity 315.38 acre-feet/year Source 2 Wells Source Location Well 1: SE¼NE¼ Section 33, Township 9 North, Range 30 East Willamette Meridian. Well 2: SW¼NE¼ Section 34, Township 9 North, Range 30 East Willamette Meridian. Purpose of Use Irrigation of 89.75 acres Period of Use March 1 – November 1 Place of Use The place of use includes the Franklin County parcels: 112-550-080, 112-550-106, 112-520-230. Franklin County parcel No. 112-520-230 replaced parcel Nos. 112-520-219, 112-520-228, 112-550-035, and 112- 550-026. This consolidation of parcels is described under AFN #1978474, recorded on September 14, 2023. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 459 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 18 of 20 EXHIBIT B LEGAL DESCRIPTION OF SELLER’S FORMER LAND Parcel A: 112-520-219 (now within 112-520-230) A parcel of land situated in the NE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington, described as follows: Beginning at the North Quarter Corner of Section 34; thence S 00°30’15” W along the center line a distance of 1,647.77 feet to the True Point of Beginning; thence continuing S 00°30’15” W along said center line a distance of 400.00 feet; thence S 89°40’35” E a distance of 2,005.68 feet; thence N 19°25’40” W a distance of 425.00 feet; thence N 89°40’35” W a distance of 1,860.79 feet to the True Point of Beginning. Parcel B: 112-520-228 (now within 112-520-230) The NE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington. EXCEPT that portion of the NE¼NE¼NE¼ of Section 34, T. 9 N., R. 30 E.W.M., lying East of the East line of Primary State Highway No. 3, as widened; AND EXCEPT the right-of-way for Primary State Highway No. 3, as widened; AND EXCEPT the Northerly 330 feet thereof. AND EXCEPT a parcel of land situated in the E½ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington, being more particularly described as follows: Beginning at the East quarter corner of said Section 34 and the True Point of Beginning; thence S 00°06’25” E along the East line of said Section, a distance of 1,100.93 feet; thence N 19°25’40” W, a distance of 3,642.78 feet; thence S 89°40’35” E parallel with the North line of said Section 34, a distance of 519.01 feet to a point on the Southwesterly margin of U.S. Highway No. 395-410 Right-of-Way; thence S 45°03’50” E along said Southwesterly margin a distance of 971.20 feet to a point on the East line of said Section 34; thence S 00°06’25” E along said East line, a distance of 1,645.49 feet to said East Quarter corner and True Point of Beginning. AND EXCEPT a portion of the N½NE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington, more fully described as follows: Beginning at the Northwest corner of the said Northeast Quarter, thence S 00°30’15” W along the West line of said Northeast quarter, a distance of 330.00 feet to the True Point of Beginning; thence S 89°40’35” E along a line 330.00 feet South of and parallel to the North line of the said Northeast Quarter, a distance of 1,383.49 feet to the Northwest corn er of Parcel “A” as shown on the Survey Map for Columbia East Partnership recorded in Book 1 of Surveys, Page 48, records of Franklin County, Washington; thence S 19°25’40” E, along the Westerly boundary of Parcel “A”, a distance of 350.63 feet; thence N 89°40’35” W along a line 660.00 feet south of and parallel to the said North line of the Northeast Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 460 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 19 of 20 Quarter, a distance of 1,503.02 feet to a point on the said West line of the parallel to the said North line of the Northeast Quarter; thence N 00°30’15” E along said West line, a distance of 330.00 feet to the True Point of Beginning. AND EXCEPT that portion of the NE¼ of Section 34, Township 9 North, Range 30 E.W.M., Franklin County, Washington, more particularly described as follows: Beginning at the North Quarter Corner of said Section 34; thence S 00°30’15” W along the North-South center Section Line, a distance of 660.00 feet to the True Point of Beginning; thence S 89°40’35” E, a distance of 1,503.01 feet; thence S 19°25’40” E, a distance of 1,049.51 feet; thence N 89°40’35” W, a distance of 1,860.79 feet; thence north 00°30’15” E along said center section line a distance of 987.7 feet to the True Point of Beginning. AND EXCEPT a parcel of land situated in the NE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington, described as follows: Beginning at the North Quarter Corner of Section 34; thence S 00°30’15” W along the center line a distance of 1,647.77 feet to the True Point of Beginning; thence continuing S 00°30’15” W along said centerline a distance of 400.00 feet; thence S 89°40’35” E a distance of 2,005.68 feet; thence N 19°25’40” W a distance of 425.00 feet; thence N 89°40’35” W a distance of 1,860.79 feet to the True Point of Beginning. Parcel C: 112-550-035 (now within 112-520-230): The SW¼NE¼SE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington AND The NW¼SE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washingto n, EXCEPT the S½S½ of the NW¼SE¼. Parcel D: 112-550-026 (now within 112-520-230) The NW¼NE¼SE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington. Parcel E: 112-550-080: The E½NE¼SE¼ of Section 34, T. 9 N., R. 30 E.W.M., Franklin County, Washington. EXCEPT Beginning at the East Quarter Corner of Section 34, T. 9 N., R. 30 E.W.M., and the True Point of Beginning; thence S 00°06’ E along the East line of said Section, 1,100.93 feet; thence N 19°25’ W to a point on the North line of said SE¼ of said Section; thence Easterly along said North line to the East Quarter corner of said Section and the True Point of Beginning. Parcel F: 112-550-106: The SE¼SE¼ of Section 34, T. 9 N., R. 30 E.W.M Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 461 of 464 Columbia East, LLC / City of Pasco Purchase and Sale Agreement Page 20 of 20 EXCEPT that portion lying Southerly of the Northerly line of the Bridge-Stockyard Road (also known as Sacajawea Park Road), as the same now exists, in Franklin County, Washington. Parcel G: 112-550-115 (now within 112-520-230): That portion of the W½SE¼SE ¼ of Section 34, T 9 N, R. 30 E.W.M., lying Southerly of the Northerly line of the Bridge-Stockyard Road (also known as Sacajawea Park Road), as the same now exists, in Franklin County, Washington. Docusign Envelope ID: 07399BA2-A6C2-4456-970D-9C5FDDB9D287 Page 462 of 464 Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure. City Council Goals QUALITY OF LIFE 2024-2025 Enhance the long-term viability, value, and service levels of services and programs. FINANCIAL SUSTAINABILITY Promote a highly functional multi-modal transportation system. COMMUNITY TRANSPORTATION NETWORK Implement targeted strategies to reduce crime through strategic investments in infrastructure, staffing, and equipment. COMMUNITY SAFETY Promote and encourage economic vitality. ECONOMIC VITALITY Identify opportunities to enhance City of Pasco identity, cohesion, and image. CITY IDENTITY Page 463 of 464 METAS DEL CONCEJO MUNICIPAL 2024-2025 Promover una alta calidad de vida a través de programas, servicios y inversion apropiada y reinversión en la comunidad infraestructura comunitaria. CALIDAD DE VIDA Promover viabilidad financiera a largo plazo, valor, y niveles de calidad de los servicios y programas. SOSTENIBIILIDAD FINANCIERA Promover un sistema de transporte multimodal altamente funcional. RED DE TRANSPORTE DE LA COMUNIDAD Implementar estrategias específicas para reducir la delincuencia por medios de inversiones estratégicas en infraestructura, personal y equipo. SEGURIDAD DE NUESTRA COMUNIDAD Promover y fomentar vitalidad económica. VITALIDAD ECONOMICA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen. IDENTIDAD COMUNITARIA Page 464 of 464