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2024.12.09 Council Special Meeting Packet
AGENDA City Council Special Meeting 7:00 PM - Monday, December 9, 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 663 036 231. 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. UNFINISHED BUSINESS 4 - 28 (a) Ordinance Nos. 4749 & 4750 - 2025-2026 Biennial Operating & Capital Projects Budgets (5 minutes) MOTION: I move to adopt Ordinance No.4749, approving Operating Budget for the 2025-2026 Biennium, and, further, authorize publication by title only. -AND- MOTION: I move to adopt Ordinance No. 4750, approving the Capital Projects Budget for the 2025-2026 Biennium, and, further, authorize publication by title only. Page 1 of 258 29 - 78 (b) Ordinance No. 4751 - Amending Sections of the Pasco Municipal Code Titles 13 and 3 Related to Pasco Water Reuse Facility (PWRF) (5 Minutes) MOTION: I move to adopt Ordinance No. 4751, 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 and, further, authorize publication by summary only. 79 - 181 (c) Lodging Tax Advisory Committee (LTAC) Recommendations for 2025 (7 minutes) Option 1 - MOTION: I move to approve the Lodging Tax Advisory Committee recommendations for the 2025 funding allocations as presented. -OR- Option 2 - MOTION: I move to remand the 2025 recommendations back to the Lodging Tax Advisory Committee. -OR- Option 3 - MOTION: I move to remove _______ and ________ from 2025 activities and approve the remaining Lodging Tax Advisory Committee recommendations as presented. -OR- Option 4 - MOTION: I move to remove _______ and ________ from 2025 activities and remand the remaining activities to the Lodging Tax Advisory Committee with Council recommendations. 182 - 201 (d) Resolution No. 4544 -Purchase of Water Rights - Wilson Sisters, LLC (5 minutes) MOTION: I move to approve Resolution No. 4544, authorizing the City Manager to execute the Purchase and Sale Agreement with Wilson Sisters, LLC, for purchase of water rights. 202 - 224 (e) Resolution No.4545 - Purchase of Water Rights - Columbia East, LLC (5 minutes) MOTION: I move to approve Resolution No. 4545, authorizing the City Manager to execute the Purchase and Sale Agreement with Columbia East, LLC, for purchase of water rights. Page 2 of 258 5. NEW BUSINESS 225 - 243 (a) Resolution No. 4546 - Requesting an Extension of the Interlocal and Financing Lease Agreement for the HAPO Center Facility Until May 31, 2025 (5 minutes) MOTION: I move to approve Resolution No. 4546, modifying the interlocal cooperation agreement between the City of Pasco and Franklin County, Washington, regarding the financing, acquisition, and ownership of a multi-purpose arena and exhibition facility (HAPO Center) amending Resolutions 94-126, 2014-494 and 2024-4448. 244 - 256 (b) *Resolution No. 4547 - Financing Agreement for Benton County Emergency Services 800MHz Radio Project (5 minutes) MOTION: I move to approve Resolution No. 4547, authorizing the City Manager to execute a Financing Agreement with the Cities of Richland and Kennewick and Counties of Benton and Franklin for capital financing on behalf of Benton County Emergency Services for 800MHz Radio Project. 6. ADJOURNMENT 7. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 257 - 258 (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 3 of 258 AGENDA REPORT FOR: City Council December 4, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Darcy Buckley, Finance Director Finance SUBJECT: Ordinance Nos. 4749 & 4750 - 2025-2026 Biennial Operating & Capital Projects Budgets (5 minutes) I. REFERENCE(S): Ordinance - Operating Budget Ordinance - Capital Projects Budget Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No.4749, approving Operating Budget for the 2025-2026 Biennium, and, further, authorize publication by title only. -AND- MOTION: I move to adopt Ordinance No. 4750, approving the Capital Projects Budget for the 2025-2026 Biennium, and, further, authorize publication by title only. III. FISCAL IMPACT: 2025 - 2026 Biennial Budget IV. HISTORY AND FACTS BRIEF: For the past many months, biennial budgetary planning has taken a prominent place both in City and Council meetings. The process included: 1. Review of 2023 - 2024 budget-to-actual analysis and trends, 2. Consideration of appropriate expenditures based on revenue forecasts, 3. Based on status of surplus or deficit of revenues, expenditure levels were Page 4 of 258 reassessed, 4. Presentations to Council for discussion, review and feedback related to policy-level decisions Per RCW 35A.34.120, it is necessary to adopt the biennial budget prior to beginning of the fiscal biennium. V. DISCUSSION: The process to establish a 2025 - 2026 biennial budget has been challenging. When the 2023 -2024 budget was adopted, a net deficit over the length of the biennium of approximately $10M - $15M was projected. Results of 2023 activity resulted in deficit spending of $3.26M. Based on forecast, results of operations for 2024 are anticipated to range from breakeven to $3M deficit. It is possible, however, that unanticipated or emergency events can impact results between now and December 31, 2024. Both as a reflection of planning by City staff and based on Council member input, complementary comments have been shared. They are: 1. The existing budget of 2023 - 2024 is unsustainable, 2. While staffing needs were real, addition of staffing should have occurred at a lower level, 3. There is a desire to not repeat creation of a budget that anticipates future economic growth before realization of said growth, 4. It will be necessary in the coming biennium to evaluate revenue options with the aim to support staff levels congruent with City population. Reserve funds can exist for various purposes, including one-time spending for a project, cash flow mitigation, emergency needs, and debt service coverage. However, balancing a budget on an ongoing basis where there exists an excess of expenditures over revenues is not desirable and may result in negative consequences. Examples are shortage of funds to pay wages and benefits or claims in a timely manner or necessity to report financial stress on the City's financial statement. The minimum recommended General Fund reserve based on 2025 - 2026 biennium budget is $13M. Based on the budget presented to Council, the estimated ending fund balance as of 12/31/2026 is approximately $18M. Recent budget discussion included discussion surrounding the addition of staff in Police Department to establish a dedicated traffic unit. Information was provided to Council during the past week. The associated cost of a dedicated traffic unit is $1.84M in the biennium without phasing of personnel. With the addition of this cost, the estimated ending fund balance as of 12/31/2026 is forecast as approximately a little over $16M. Phasing the unit over two Page 5 of 258 bienniums could result in a cost of $400,000 in the first biennium for two additional FTE. Prior to adding personnel, it would be worthwhile to explore duty assignments for traffic emphasis paired with data reports to City achievable is change if show Management Council City and through to management of personnel tasks/assignments. Based on this evaluation, if necessary, budget amendments can be proposed in the 2025 - 2026 biennium. In the new biennium, staff will provide quarterly budget-to-actual presentations. One pivotal element of budgetary planning for 2025 - 2026 is the reduction of budget authority related to potential labor cost savings. Budgetary expenses were reduced by $5.8M. Realization of these savings are reliant on vacancies. Included in the quarterly reports will be level of savings from vacant positions. While not a typical budgetary process, based on either positive or negative financial results staff may approach Council throughout the biennium to request budgetary finetuning-type amendments. Page 6 of 258 Ordinance – 2025-2026 Operating Budget - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, APPROVING THE OPERATING BUDGET FOR THE 2025-2026 BIENNIUM. WHEREAS, subsequent to due notice and public hearing thereon, the City Council for the City of Pasco seeks to approve an operating budget for the 2025-2026 biennium. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. The following budget containing the totals set forth for each fund for the 2025-2026 biennium is hereby adopted. OPERATING BUDGET FOR 2025-2026 Fund Name Budgeted Beginning Fund Balance Revenues & Resource Inflow Expenditure & Resource Outflows Budgeted Ending Fund Balance General Fund 31,264,925 158,674,724 171,871,410 18,068,239 City Streets 647,542 4,677,189 5,909,486 (584,755) Arterial Streets 1,133,548 1,041,757 327,154 1,848,151 I-182 Corridor Impact 1,176,717 1,210,000 539,616 1,847,101 Street Overlay 2,091,426 2,376,000 2,229,089 2,238,337 CDBG and HOME 9,605 2,630,360 2,554,946 85,019 MLK Center 15,194 309,700 373,954 (49,060) Ambulance 7,248,206 26,974,216 28,168,506 6,053,916 ARPA 50,630 3,907,157 3,957,787 - Cemetery 523,697 644,500 833,891 334,305 Boulevard Maintenance 2,095,226 237,541 298,085 2,034,682 Athletics 307,291 400,700 359,334 348,657 Golf Course 309,767 264,000 50,000 523,767 Page 7 of 258 Ordinance – 2025-2026 Operating Budget - 2 Fund Name Budgeted Beginning Fund Balance Revenues & Resource Inflow Expenditure & Resource Outflows Budgeted Ending Fund Balance Animal Control 73,579 4,732,716 4,806,295 - Senior Center 159 368,200 308,775 59,584 Multi-Modal Facility 317,347 416,882 152,166 582,063 School Impact 83,990 5,000,000 4,981,900 102,090 Rivershore Trail & Marina 37,198 58,300 44,277 51,221 Lodging Tax - 1,186,155 1,186,155 - Litter Abatement 86,340 700 9,882 77,158 Revolving Abatement 2,442 438,400 416,251 24,591 HAPO 105,978 377,700 454,393 29,285 Park Development 2,724,929 2,235,500 1,987,737 2,972,692 Capital Improvement 8,104,674 5,725,000 3,304,569 10,525,105 Economic Development 15,606,207 3,575,000 4,164,307 15,016,900 Stadium 154,994 686,544 469,088 372,450 Hotel Motel 1,819,119 1,721,000 2,861,166 678,953 Local Improvement Districts 219,941 219,941 - Construction 64,402,563 64,402,563 - Utility 60,283,227 168,281,921 186,281,536 42,283,612 Equip Oper & Maintenance (10,100) 5,143,900 6,297,203 (1,163,403) Utilities Fund Fuel - 400,000 400,000 - Equipment Replc Govt 9,261,874 2,048,224 977,566 10,332,532 Equipment Replc Utility 6,059,692 1,504,545 560,000 7,004,237 Health Benefit Funds 2,919,070 19,622,539 19,582,536 2,959,073 Page 8 of 258 Ordinance – 2025-2026 Operating Budget - 3 Fund Name Budgeted Beginning Fund Balance Revenues & Resource Inflow Expenditure & Resource Outflows Budgeted Ending Fund Balance Cemetery Endowment 769,366 56,000 - 825,366 Old Fire Pension 835,885 934,672 218,637 1,551,920 Old Fire OPEB 65,403 954,540 152,648 867,295 Total City Budget Balances 156,175,147 493,438,786 521,712,849 127,901,083 Section 2. The City of Pasco’s 2025-2026 Operating Budget shall be in full force and effect on January 1, 2025. Section 3. 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 4. 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. Section 5. 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, this ___ day of _______, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: ______________________________ ________________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: _____________________________ Page 9 of 258 Ordinance – 2025-2026 Capital Projects Budget - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, APPROVING THE CAPITAL PROJECTS BUDGET FOR THE 2025-2026 BIENNIUM. WHEREAS, subsequent to due notice and public hearing thereon, the City Council for the City of Pasco seeks to approve the following Capital Projects Budget for the 2025-2026 biennium. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. That the capital projects are hereby authorized as detailed. The following schedule summarizes newly authorized projects, as well as continuing projects, and constitutes the Capital Projects Budget. CAPITAL PROJECTS BUDGET FOR 2025-2026 Project Designation Project Name Amount Parks and Recreation Highland Park Improvements (Goal Posts & Restroom/Storage Building) 372,642 Parks and Recreation Memorial Pool - Bubble Cover & Improvements 1,208,623 Parks and Recreation Thunderbird/Farmer's Market Parking Lot 250,000 Parks and Recreation Police HQ Generator 414,000 Parks and Recreation City Hall Generator 467,000 Parks and Recreation Marina Dock B Replacement 2,310,000 Parks and Recreation Burden Blvd. Soccer Complex Improvement - Phase 2 200,000 Parks and Recreation Xeriscape Boulevards, Facilities & Parks 150,000 Parks and Recreation Land Purchases - Parks 1,500,000 Parks and Recreation Pasco Specialty Kitchen Building Expansion 700,000 Parks and Recreation Peanuts Park North Refurbishment 150,000 Parks and Recreation A Street Sports Complex Phase 2 80,000 Parks and Recreation Irrigation Clock Conversion Replacement - City Wide 400,000 Page 10 of 258 Ordinance – 2025-2026 Capital Projects Budget - 2 Project Designation Project Name Amount Parks and Recreation Big Cross Mountain Bike Trails 250,000 Parks and Recreation Franklin County Irrigation District Trail New Construction Phase 1 & 2 75,000 Parks and Recreation Lighted Pickleball Complex - Broadmoor Area 1,560,000 Parks and Recreation Memorial Park Conversion of Play Fields Refurbishment 950,000 Parks and Recreation City-Wide Trail Connection and Trail Improvement 225,000 Parks and Recreation Martin Luther King Center Renovation/Expansion - E Columbia St & S Wehe Ave 3,730,000 Parks and Recreation Sylvester Park Enhancements 150,000 Parks and Recreation Shoreline Drive Park 60,000 Parks and Recreation Park Security/Pathway Lighting Pilot - Various Parks 175,000 Parks and Recreation Highland Park South Side Update 100,000 Parks and Recreation Burden Blvd. Soccer Complex Improvements - Phase 1 1,800,000 Parks and Recreation Regional Wayfinding and City Gateways - Parks and Recreation West Side Community Center - Parks and Recreation GESA Stadium Refurbishment 2,500,000 Parks and Recreation GESA Stadium Parking Lot Refurbishment - Total Parks and Recreation 19,777,265 Roadways Lewis St Overpass 100,000 Roadways Court St /Rd 68 Intersection Improvements 100,000 Roadways Sylvester Street Safety Improvements 100,000 Roadways Sandifur Pkwy/Rd 76 Intersection Safety Enhancements 389,000 Roadways Rd 40 East Pathway 500,000 Roadways Lewis Street Underpass Demolition 3,000,000 Roadways James St Improvements - Page 11 of 258 Ordinance – 2025-2026 Capital Projects Budget - 3 Project Designation Project Name Amount Roadways Court St Safety Improvements 110,000 Roadways Burns Rd Extension - Missing Link 3,350,000 Roadways Burden Rd/Rd 44 Intersection Improvements 360,000 Roadways Burden Blvd/Rd 60 Intersection Improvements 360,000 Roadways W 'A' St/6th Ave Pedestrian Crossing 592,000 Roadways Argent Rd/Rd 88 and Sandifur Pkwy/Rd 90 Pedestrian Crossings 1,122,048 Roadways Ainsworth Ave Pavement Preservation 2,082,000 Roadways Lewis St Pavement Preservation 5,146,000 Roadways I-182/Broadmoor Blvd I/C Improvements - Eastbound 100,000 Roadways Burden Blvd/Madison Ave Intersection Improvements 360,000 Roadways Rd 68 Widening - Chapel Hill Blvd to Argent Rd 750,000 Roadways Rd 40 E Extension 930,000 Roadways Columbia St Improvements 390,000 Roadways Clark St Improvements 420,000 Roadways South 4th Ave Festival Street Improvements 1,080,000 Roadways Rd 76 Overpass 5,759,000 Roadways Lewis St Corridor Improvements - 2nd Ave to 5th Ave (Phase 1) 4,348,000 Roadways Sylvester St Overpass Pedestrian/Bicycle Access 580,660 Roadways I-182/Broadmoor Blvd I/C Multiuse Pathway/Bridge 11,180,000 Total Roadways 43,208,708 Irrigation Irrigation System Expansion 6,375,245 Total Irrigation 6,375,245 PWRF PWRF Foster Wells Lift Station Improvements 6,000,000 Page 12 of 258 Ordinance – 2025-2026 Capital Projects Budget - 4 Project Designation Project Name Amount PWRF PWRF Pretreatment Improvements (Phase 2) Winter Storage 5,000,000 PWRF PWRF Irrigation System - Farm Upgrades 17,000,000 Total PWRF 28,000,000 Sewer Annual Sewer Upsizing Program 816,000 Sewer Maitland Lift Station Improvements 1,000,000 Sewer 9th & WA Lift Station Improvements 1,000,000 Sewer CSP#17 - USACE Easement Sewer Main Upsize - Rd 72 to Rd 60 2,425,000 Sewer CSP#21 - USACE Easement Sewer Main Upsize - Rd 28 to US 395 1,225,000 Sewer CSP#20 - USACE Easement Sewer Main Upsize -Rd 36 West of US 395 1,625,000 Sewer Wastewater Treatment Plant (WWTP) Improvements (Phase 2) 10,200,055 Sewer Riverview West Sewer Lift Station 365,000 Total Sewer 18,656,055 Stormwater Schlagel Park Stormwater Main Replacement 680,520 Stormwater Sylvester Pipe Repair - 5th Ave to 10th Ave 841,000 Stormwater Infiltration Improvements Program 1,250,000 Total Stormwater 2,771,520 Water Road 49 Water Main Replacement - Replace 2in with 8in South of Sylvester 1,000,000 Water West Pasco Water Treatment Plant Expansion (Phase 2) - 12MGD 2,549,340 Water Land - Plant Expansion 1,000,000 Water BWTP Project 8 - Flocculation Basins 335,000 Water BWTP Project 16 - Intake Screens 1,220,000 Water BWTP Project 11 - Ozone 220,000 Page 13 of 258 Ordinance – 2025-2026 Capital Projects Budget - 5 Project Designation Project Name Amount Water BWTP Project 5 - Chemical Building 310,000 Water BWTP Project 3 - Raw Water Pump Station 5,271,000 Water BWTP Project 1 - Electrical Building 3,226,364 Water Reservoir Storage Tank - Zone 2 1,000,000 Water West Pasco Water Treatment Plant Expansion (Phase 3 & 4) - Firm Capacity & 18MG 10,930,000 Total Water 27,061,704 Total Capital Budget 145,850,497 Section 2. The City of Pasco’s 2025-2026 Capital Projects Budget shall be in full force and effect on January 1, 2025. Section 3. 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 4. 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 5. Effective Date. This Ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. Page 14 of 258 Ordinance – 2025-2026 Capital Projects Budget - 6 PASSED by the City Council of the City of Pasco, Washington, 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 15 of 258 December 9, 2024 Pasco City Council Special Meeting Pa g e 1 6 o f 2 5 8 2025-2026 Biennial Budget December 9, 2024 Pasco City Council Pa g e 1 7 o f 2 5 8 2025 -2026 Biennial Budget Goals •Reduce and mitigate reliance on reserves •Build a budget based on expected biennial revenues sufficient to meet essential service demands City-wide •Creation of budget that serves as a bridge to future economic development 3 Pa g e 1 8 o f 2 5 8 4 Budget Considerations Budgetary review results 1. 2023-2024 budget level spending was unsustainable 2. While an impact to service provision, staffing additions in 2023-2024 impactful 3. Match 2025-2026 budget planning with current revenue sources 4. Use coming biennium to evaluate revenue options Financial Recommendations 1. Cash flow into General Fund is cyclical in nature - Without sufficient reserves, risk of inability to meet payroll and/or pay claims in timely manner 2. Recommended minimum reserve of 60 days of operating expenditures, or $13M 3. Evaluation of going concern for twelve months past financial statement date must be evaluated and reported in Annual Comprehensive Financial Reports •One indicator of financial stress is negative trends, including recurring periods in which spending significantly exceeds revenues •State Auditor’s Office will evaluate as well 4. Need for new funding may be necessary for existing services not expanded services Pa g e 1 9 o f 2 5 8 5 Budget Considerations City staff recommends adoption of General Fund budget that mitigates reserve use and postpones staffing additions until new, supportive revenue is implemented Budget adoption is necessary for continuation of City business in 2025 •Without budget approval, City lacks authority for spending as of 1/1/2025 Quarterly financial presentations in 2025 – 2026 provide opportunity to: •Evaluate actual revenues and expenses as compared to historical activity and time in budget expectations •Highlight positions held vacant and related savings •Amend budget increases or decreases in response to actual activity Pa g e 2 0 o f 2 5 8 6 2025 -2026 Budgetary Impacts Budgetary Reductions •Training and travel where not required for certifications •Combination/limitations for community events •Deferral of maintenance to meet a break-fix schedule •Pause in implementation of new programs or positions •Judicious review of open positions •Reassign roles to limit labor costs •Will result in slower response time to non-emergency requests •With reduced workforce, timelines will extend •Ultimate savings subjective. Budget reduced by $5.8M Pa g e 2 1 o f 2 5 8 7 2025 -2026 Budgetary Impacts What will not be impacted •Essential, certification necessary training •Response to emergency, critical public safety •Provision of necessary tools and protective gear •Commitment to quality customer service •Dedication to financial stewardship •Strategic approach to fundraising Pa g e 2 2 o f 2 5 8 8 2025 – 2026 General Fund Without Costs associated with Dedicated Traffic Unit RS0 Pa g e 2 3 o f 2 5 8 Slide 8 RS0 Instead of fund name, can we say categories Richa Sigdel, 2024-11-27T17:23:27.383 DB0 0 Updated. How does that look? Darcy Buckley, 2024-11-27T19:01:16.384 Pa g e 2 4 o f 2 5 8 9 2025 – 2026 General Fund Recommended minimum General Fund Reserve Balance is 60 days of operating expenditures, or approximately $13M. Based on continued level of reliance of reserves, drawdown to that level of reserves occurs end of 2027. Following that level of use, fund balance would be exhausted by approximately September 2029. Pa g e 2 5 o f 2 5 8 10 2025 – 2026 Budget Pa g e 2 6 o f 2 5 8 11 •Requesting budget adoption tonight •Analysis of measures to meet traffic unit can be completed in 2025 and any necessary budget entries completed by amendment •Potential carryover of capital or contractual unspent 2023-2024 authority •Internal department level budget-to-actual review occurs on monthly basis •Quarterly budget-to-actual Council presentations during 2025 – 2026 •Will include report on: •Vacant positions •Related budgetary savings •Any associated productivity impacts •As customary, items of material budget impact will be address during Council meetings •Analysis and review of revenues and potential increases will be investigated in 2025 – 2026 biennium Future Steps Pa g e 2 7 o f 2 5 8 Thank youPa g e 2 8 o f 2 5 8 AGENDA REPORT FOR: City Council December 4, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Maria Serra, Director Public Works SUBJECT: Ordinance No. 4751 - Amending Sections of the Pasco Municipal Code Titles 13 and 3 Related to Pasco Water Reuse Facility (PWRF) (5 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: MOTION:City's the to relating 4751, to Ordinance adopt move I No. 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 and, further, authorize publication by summary only. III. FISCAL IMPACT: The ordinance establishes base rates for PWRF users. The 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: Page 29 of 258 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 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 Page 30 of 258 WTA, and the agreement with Burnham. Since the last presentation to Council on this topic, two meetings were held 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 the comments Similarly, to 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 with facility turnkey and no 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: Staff presented this item to Council at the December 2nd meeting. The specifically Code, Pasco Municipal updates ordinance proposed the 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 wastewater users by supporting necessary demands industrial 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. Page 31 of 258 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. 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. This item was most recently discussed at Council Regular Meeting on December 2, 2024. Page 32 of 258 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 (“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 Page 33 of 258 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 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 PASCO MUNICIPAL CODE AMENDED. 2.1 Pasco Municipal Code Section 13.55.010 is amended to read as follows: Industrial users shall connecting to the City’s process water reuse facilities. 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 connect. Industrial users shall also be required to connect to the City’s municipal water system. Industrial Users are shall further be required to secure all necessary permits prior to connection to the process water reuse facilities. In addition, industrial users shall install at their Page 34 of 258 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 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 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, Pasco Municipal Code 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, Pasco Municipal Code 13.55.020 is repealed and a new section, Pasco Municipal Code 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 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: Page 35 of 258 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 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 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. Page 36 of 258 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 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: PMC 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 Fixed Charge (monthly cost per user) $ 8,488 Storage, per MG $727 Flow, per MG $541 Nitrogen, per ppd $91 Page 37 of 258 Ordinance – Amending PMC Titles 3 & 13 FG: 102860186.5 Description Unit Cost 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 PASCO MUNICIPAL CODE AMENDED. Pasco Municipal Code Section 3.35.210 is hereby repealed. Section 4. CHAPTER 13.75 PASCO MUNICIPAL CODE AMENDED. Pasco Municipal Code 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 a 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 a 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 PASCO MUNICIPAL CODE 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 38 of 258 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: __________________________ ____________________________________ P. Stephen DiJulio, Special Counsel Page 39 of 258 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 40 of 258 December 9, 2024 Pasco City Council Special Meeting Pa g e 4 1 o f 2 5 8 Amendment to PMC Chapter 13 - PWRF Rate Ordinance December 9, 2024 Pasco City Council Pa g e 4 2 o f 2 5 8 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. PMC Title 13 Water and Sewers Pa g e 4 3 o f 2 5 8 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 4 4 o f 2 5 8 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 4 5 o f 2 5 8 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 4 6 o f 2 5 8 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 4 7 o f 2 5 8 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 4 8 o f 2 5 8 Coordination with Stakeholders 9 •System expansion needs •System alternatives •Estimates •CIP Project updates •Operational updates •Environmental/permitting updates 2018 – 2024 Meetings held regularly Pa g e 4 9 o f 2 5 8 Background 10 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 5 0 o f 2 5 8 Revised Rate Comparison 11 WTA ORIGINAL ORDINANC E REVISED ORDINANC E Pa g e 5 1 o f 2 5 8 12 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 5 2 o f 2 5 8 Risks to City 13 •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 5 3 o f 2 5 8 Mitigation 14 •Hold federal tax credit as a risk pool, in PWRF Reserve Fund, amount not known at this time ($40-$70 million estimated) •Rate update with Council Action Pa g e 5 4 o f 2 5 8 Next Steps 15 •New Ordinance to be effective on January 1st, 2025 Pa g e 5 5 o f 2 5 8 Questions?Pa g e 5 6 o f 2 5 8 Pa g e 5 7 o f 2 5 8 Pa g e 5 8 o f 2 5 8 Pa g e 5 9 o f 2 5 8 Pa g e 6 0 o f 2 5 8 Pa g e 6 1 o f 2 5 8 Pa g e 6 2 o f 2 5 8 Pa g e 6 3 o f 2 5 8 Page 64 of 258 Pa g e 6 5 o f 2 5 8 Pa g e 6 6 o f 2 5 8 Pa g e 6 7 o f 2 5 8 Page 68 of 258 Pa g e 6 9 o f 2 5 8 Pa g e 7 0 o f 2 5 8 Pa g e 7 1 o f 2 5 8 Pa g e 7 2 o f 2 5 8 Pa g e 7 3 o f 2 5 8 Pa g e 7 4 o f 2 5 8 Pa g e 7 5 o f 2 5 8 Pa g e 7 6 o f 2 5 8 Pa g e 7 7 o f 2 5 8 Copy of Pasco PWRF 2023 COSA v25 - 10 28 2024 - Unit Cost Comparison (002) City of Pasco PWRF Rate Study & COSA Unit Costs - Sample Processor Notes: 1. To determine blended rates, all functional costs were spread proportionately across assumed design totals. This process will blend rates that are more specific to each Processor (i.e., existing debt or existing/new cost allocation for LRAD). PWRF Contractual Monthly Rates 2024 Blended Rates Description Input Description Costs Monthly Fixed Rate 8,488$ 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 1of 1 Sample Bill Pa g e 7 8 o f 2 5 8 AGENDA REPORT FOR: City Council December 4, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Angela Pashon, Assistant City Manager City Manager SUBJECT: Lodging Tax Advisory Committee (LTAC) Recommendations for 2025 (7 minutes) I. REFERENCE(S): 10.15.2024 LTAC Draft Meeting Minutes 2025 Lodging Tax Summary Sheet Presentation Slides Applications II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Option 1 - MOTION: I move to approve the Lodging Tax Advisory Committee recommendations for the 2025 funding allocations as presented. -OR- Option 2 - MOTION: I move to remand the 2025 recommendations back to the Lodging Tax Advisory Committee. -OR- Option 3 - MOTION: I move to remove _______ and ________ from 2025 activities and approve the remaining Lodging Tax Advisory Committee recommendations as presented. -OR- Option 4 - MOTION: I move to remove _______ and ________ from 2025 activities and remand the remaining activities to the Lodging Tax Advisory Committee with Council recommendations. Page 79 of 258 III. FISCAL IMPACT: Lodging Tax: up to $1,005,000 IV. HISTORY AND FACTS BRIEF: Lodging Tax Overview on tax lodging local a 2% collection the authorizes law State of accommodations such as hotels and motels. Initially, these funds could be used for stadium development and tourism promotion activities. In 1993, Pasco was granted additional authority by the state to assess an additional 2% lodging tax to fund the City’s share of the TRAC facility, now known as the HAPO Center. Subsequently, the legislature increased the base lodging tax to 4% and standardized its application across jurisdictions. This amendment also required the establishment of a Lodging Tax Advisory Committee (LTAC) to review and recommend proposed uses of lodging tax funds annually. Lodging Tax Advisory Committee (LTAC) State law (RCW 67.28.1817) mandates that cities or counties with populations of 5,000 or more imposing a lodging tax establish an LTAC. The committee's primary funding make and applications tax function review to is lodging recommendations to the legislative body. LTAC Membership Requirements For jurisdictions with populations of 5,000 or more, the LTAC must include: At least two representatives from businesses required to collect the lodging tax. At least two individuals involved in activities eligible for lodging tax funding. One elected official from the jurisdiction, who serves as the chair. Funding Awards Entities eligible to apply for lodging tax funding include: Convention and visitors’ bureaus Destination marketing organizations Nonprofits, such as main street organizations, lodging associations, or chambers of commerce. Municipalities Allowable Uses of Lodging Tax Funds Tourism marketing Marketing and operations of special events and festivals designed to Page 80 of 258 attract tourists. Operations and capital expenditures for tourism-related facilities owned or operated by a municipality or public facilities district. Operations of tourism-related facilities owned or operated by nonprofit organizations. 2025 Applications The Pasco LTAC convened on October 15, 2024, to review 18 proposals for the use of 2025 lodging tax receipts. The total amount requested was $1,102,377, while projected revenue for 2025 is $1,000,000. Staff developed funding recommendations using the following prioritization criteria: 1. Long-term contractual commitments received priority. 2. Equal allocations were applied to special event applications. 3. Equal allocations were applied to marketing applications. Pasco LTAC approved the following recommendations for 2025: Ops Tourism Facility LTAC Recommendation TRAC/HAPO Center $ 200,000 GESA Debt Service $ 290,000 Soccer Complex $ 172,121 Total $ 662,121 Event/Festival LTAC Recommendation Cinco de Mayo $ 9,000 Fiery Foods Festival $ 9,000 Water Follies $ 9,000 COPA $ 15,000 CBC Volleyball Champ $ 5,000 Juneteenth $ 2,000 Swim the Snake $ 1,000 Charro Event $ 5,000 NWAC Basketball Champ $ 9,000 Total $ 64,000 Tourism Marketing LTAC Recommendation Fund Administration $ 14,503 Pasco Marketing $ 10,000 Tri-Cities VCB $ 203,376 Time Magic $ 10,000 Pasco Chamber $ 36,000 Page 81 of 258 Franklin County Historical Society $ 5,000 Total $ 278,879 2025 Recommendations Total $ 1,005,000 V. DISCUSSION: At the November 25, 2024, Workshop, the City Council reviewed the LTAC recommendations in interest was there 2025. the During for discussion, exercising the option to modify recommendations by removing certain items entirely and adjusting award amounts. Per RCW 67.28.1816(2)(b)(ii), the City Council has the following options regarding LTAC recommendations: 1. Accept the LTAC recommendation as presented. 2. Remand the recommendation in its entirety back to LTAC if deemed unacceptable. 3. Strike individual activities entirely (line-item removal) and accept the funding amounts for others as presented. 4. Strike individual activities entirely and remand remaining items back to LTAC for further review, requiring a 45-day waiting period before final action. Given that the 2025 LTAC recommendations exceed expected revenues by $6,000, staff recommends Option 1 (accept recommendations as presented) or Option 3 (line-item removal of specific activities while approving others). Page 82 of 258 DR A F T MINUTES Lodging Tax Advisory Committee 1:00 PM - Tuesday, October 15, 2024 Microsoft Teams Webinar MICROSOFT TEAMS MEETING INSTRUCTIONS Join the meeting now Dial in by Phone: 1-332-249-0718 Conference ID: 325 715 674# CALL TO ORDER Committee Members Attending: Mayor Pete Serrano, Colin Hastings, Hector Cruz Absent: Taran Patel, Monica Hammerberg Staff Attending: Angela Pashon and Laurel McQuade The meeting was called to order at 1:07 pm. INTRODUCTION OF COMMITTEE MEMBERS CONSENT AGENDA Approval of September 5, 2023 Meeting Minutes MOTION: Colin Hasting motioned to approve the September 5, 2023, LTAC Meeting Minutes. Hector Cruz seconded. Motion carried unanimously REVIEW Staff reviewed 2023-2024 Lodging Tax & GESA Fund Summary 2025 LODGING TAX REQUESTS A total of 18 requests were received with a total of $1,102.377. The Page 1 of 4Page 83 of 258 DR A F T current budget is $1,000,000. Support/Ops Tourism Facility i.TRAC/HAPO - requested $200,000 ii.Gesa Stadium - requested $290,000 iii.Soccer Complex - requested $200,000 Event/Festival Organizer i.Cinco de Mayo - requested $15,000 ii.Fiery Foods Festival - requested $10,000 iii.Water Follies - requested $10,000 iv.COPA Symphony Fiesta - requested $25,000 v.CBC Volleyball Championship - requested $10,000 vi.Juneteenth - requested $4,000 vii.Swim the Snake - requested $1,000 viii. Charro Event - requested $30,000 ix.NWAC Basketball Championship - requested $10,000 Tourism Marketing i.Lodging Tax Fund Administrative Expense - requested $14,503 ii.Pasco Marketing - requested $15,000 iii.Tri-Cities Visitor & Convention Bureau - requested $203,376 iv.Time Magic - requested $20,000 v.Pasco Chamber of Commerce - requested $36,000 vi.Franklin County Historical Society - requested $8,498 2025 RECOMMENDATIONS FOR CONSIDERATION Assistant City Manager Pashon reviewed the following staff recommendations. Support/Ops Tourism Facility GESA Debt Service $290,000 TRAC/HAPO Center $200,000 Soccer Complex $172,121 Event/Special Event Cinco de Mayo $9,000 Fiery Foods Festival $9,000 Water Follies $9,000 COPA Symphony $15,000 CBC Volleyball Champ. $5,000 Juneteenth $2,000 Swim the Snake $1,000 Page 2 of 4Page 84 of 258 DR A F T Charro Event $5,000 NWAC Basketball $9,000 Tourism Marketing Fund Administration $14,503 CoP Marketing $10,000 Tri-Cities VCB $203,376 Time Magic $10,000 Pasco Chamber $36,000 Franklin Co. H.S. $5,000 •Mayor Serrano requested further information regarding the COPA Symphony event. •Stephen McFadden clarified that this is not the first time the event has been held. He highlighted COPA’s significant efforts, noting that the arts and culture aspects of the Symphony align well with LTAC’s goals. •Hector Cruz inquired about the 400 room nights mentioned in the application. McFadden responded that he couldn’t justify the figure, explaining that there currently isn't a mechanism to accurately track room nights. Establishing a tracking process would be necessary. •Jose Iniguez mentioned that room nights related to the Symphony event will be supplemented by association members attending the Charro event. He provided an overview of the additional information on the Charro event available in the meeting packet. •Colin Hasting asked if the Charro event could continue with a reduced allocation from LTAC. •Jose Iniguez confirmed that it could, though this would increase the pressure to raise additional funds through other means. •Angela Pashon inquired if the COPA Symphony application would be COPA’s only funding request from the City. •Stephen McFadden responded that COPA initially planned to request $15,000 for its other non-arts and culture committees. He formally requested at least $15,000 from LTAC to ensure the event's success. •Hector Cruz mentioned that the CBC Volleyball Championship, which takes place during the shoulder season, could significantly benefit Pasco hotels. He noted its proven success in other locations. •Colin Hasting proposed an additional allocation of $3,000 for COPA and $5,000 for the Charro event, to be drawn from reserves or the fund, contingent on revenue projections being exceeded. •The committee agreed to reconvene in mid-2025 if revenues are exceeding projections to review reduced requests. MOTION: Colin Hastings made a motion to accept staff’s recommendation amending that COPA receive $15,000 and Charro receive $5,000 out of reserves or use the fund balance if projections are exceeded. Seconded by Hector Cruz. Page 3 of 4Page 85 of 258 DR A F T •Discussion: Cruz said that they always want to make sure we’re bringing in room nights through supporting these events. •Mayor Serrano requested solid tracking for event room nights. •Mayor Serrano called for a vote. Motion Passed unanimously. ADJOURNMENT There being no further business, the meeting was adjourned at 1:54pm. PASSED AND APPROVED THIS ___ DAY OF _______, 20__ APPROVED: Page 4 of 4Page 86 of 258 Support/Ops Tourism Facility Requested Staff Recommended LTAC Recommendation TRAC/HAPO Center* 200,000$ 200,000$ 200,000$ GESA Debt Service 290,000$ 290,000$ 290,000$ Soccer Complex 200,000$ 175,121$ 172,121$ Total 690,000$ 665,121$ 662,121$ Event/Festival Organizer Requested Staff Recommended LTAC Recommendation Cinco de Mayo 15,000$ 9,000$ 9,000$ Fiery Foods Festival 10,000$ 9,000$ 9,000$ Water Follies 10,000$ 9,000$ 9,000$ COPA 25,000$ 12,000$ 15,000$ CBC Volleyball Champ 10,000$ 5,000$ 5,000$ Juneteenth 4,000$ 2,000$ 2,000$ Swim the Snake 1,000$ 1,000$ 1,000$ Charro Event 30,000$ -$ 5,000$ NWAC Basketball Champ 10,000$ 9,000$ 9,000$ Total 115,000$ 56,000$ 64,000$ Tourism Marketing Requested Staff Recommended LTAC Recommendation Fund Administration 14,503$ 14,503$ 14,503$ Pasco Marketing 15,000$ 10,000$ 10,000$ Tri-Cities VCB*** 203,376$ 203,376$ 203,376$ Time Magic 20,000$ 10,000$ 10,000$ Pasco Chamber 36,000$ 36,000$ 36,000$ Franklin County Historical Society 8,498$ 5,000$ 5,000$ Total 297,377$ 278,879$ 278,879$ 2025 Projected Revenue 1,000,000$ 2025 LTAC Recommendation 1,005,000$ 2025 Lodging Tax Summary Page 87 of 258 12/2/24 City Council Special Meeting Pa g e 8 8 o f 2 5 8 2025 Requests 18 Requests Total: $1,102,377 Budget: $1,000,000 2 Pa g e 8 9 o f 2 5 8 •Support/Operations Tourism Facility •HAPO Center $200,000 •Gesa Stadium $290,000 •Soccer Complex $172,211 •Tourism Marketing •Fund Administration $14,503 •CoP Marketing $10,000 •Tri-Cities VCB $203,376 •Time Magic $10,000 •Pasco Chamber $36,000 •Franklin Co. H.S. $5,000 •Event/Special Event •Cinco de Mayo $9,000 •Fiery Foods Festival $9,000 •Water Follies $9,000 •COPA Symphony $15,000 •CBC Volleyball $5,000 •Juneteenth $2,000 •Swim the Snake $1,000 •Charro Event $5,000 •NWAC Basketball $9,000 2025 Lodging Tax Advisory Committee Recommendations 3 Pa g e 9 0 o f 2 5 8 Per RCW 67.28.1816(2)(b)(ii), the City Council has the following options regarding LTAC recommendations: 1.Accept the LTAC recommendation as presented. 2.Remand the recommendation in its entirety back to LTAC if deemed unacceptable. 3.Strike individual activities entirely (line-item removal) and accept the funding amounts for others as presented. 4.Strike individual activities entirely and remand remaining items back to LTAC for further review, requiring a 45-day waiting period before final action. Council Options 4 Pa g e 9 1 o f 2 5 8 Pa g e 9 2 o f 2 5 8 IJ) Phone:Email Address:509—543-5790 kubalekb@pasco-wa.gov Contact Name and Title:Brent Kubalek Federal Tax ID Number:91-6001264 Application for 2025 Pasco Lodging Tax Funds Amount of Lodging Tax Requested:$300’ 000 Organization/Agency Name:.Type:Non-Pro?tCityofPascoFor—Pro?t I Public A enc State:WA Zip:99301 Title of Pro osed Use/Activit:.,p y Soccer Complex —Tenant &VISItor Enhancement SCOPE0f Work This project will enhance the visitor experience by repairing and upgrading components (Will be within the Pasco Sporting Complex Soccer facility.Depending on funding the upgrades included in could include purchasing a tiny robot ?eld painting machine,new goals and nets,add Contract):wifi,PA sound system,replace playground,add welcome sign,and add shelter Funding Outline: Non-Pasco Lod in Tax Sources:Amount:Uses of Pasco Lod in Tax:Amount: Mailing Address:525 N.3rd Ace City:Pasco ~---—-_ -— —_>-_-..‘_ 200,000 200,000 Requested Pasco Lodging Tax Funds:300,000 TOTAL BUDGET:$300,000 TOTAL 333003 00 If your agency is a non-profit a copy of your agency’s current non-profit corporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Tourism Marketing Event/FestivalMarketing/Operation Tourism Facility Operation 300,000 l;P|ease attached the following (if applicable)to your application: ‘ Page 93 of 258 HTheStateofWashintonrequiresanestimateforthefollowin uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. informal Surve :Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to As a direct result of your proposed tourism-related sewice,prowde an determine attendance in previous estimate of:years? 3.Overall Attendance 34 200 ii Direct Count Enter the total number of people predicted to P d‘t d- t _Indirect Count attend this activity and select the method used to re 'c e 'Placer-3'?g:::l";atr'v:ysuwey.U Vdeterminetheattendance.count Structured Estimate b.Attendance,50+Miles 17 125 Direct Count Number of people predicted to travel more than Predicted' '_Indirect Count 50 miles to attend this activity and select the 'placer-3'Representative Survey method used to determine the attendance.COUHt '“forma'Survey I Structured Estimate c.Attendance,putofState,Out of Country 11950 Direct Count Of the total listed in b above,number of people -mt“ct Co m -Predicted:accord'ng I e u predicted to travel from another state and country to Placer.ai Representative Survey and select the method used to determine the report Informal Survey attendance.Structured Estimate d.Attendance Paid for Overnight Lodging Direct Count '12,000 Indirect CountEnterthenumberofpredictedtoattendthisactivity '' Predicted:R tat'e SandpayforovernightlodgingandselectthemethodIn:::::lr15url\:leymay used to determine the attendance..Structured Estimate Attendance Did Not Pa for Overni ht Lod in Direac‘mnt h ' b f vd'd g d h'gg _,221200 indirect Count Entertenu.mero pre icteto attent is actiVity Predicted:Representative Survey Without paying for overnight lodging and select the Informa|survey method used to determine the attendance.-Structured Estimate f.Paid Lod in Ni hts .Di'ethwnt Enter thegn?mbgrofpredicted paid lodging nights and PradICtEd:Indirea Count 41000 Representative Surveyselectthemethodusedtodeterminetheattendance. Lodging night =one or more persons in one room Informal Survey I Structured Estimate I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 Reporting requirements meeting state guidelines outlined in this application must be submitted with ?nal request for reimbursement. o All funded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included In request. Signature:Name (Printed):Brent Kubaiek Date 8/22/24 Page 94 of 258 PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council Application Deadline:Friday,August 30th by 5:00 pm. To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Email:mc uadeL@ asco-wa.ov Phone:(509)975-9683 Page 95 of 258 City of Pasco Lodging Tax Fund Overview Pasco’s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures- designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: 0 The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. a Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. -Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or cl.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 9 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. -"Tourism—relatedfacility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 ”Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 96 of 258 Hum 4CIDD CY Phone:Email Address:509-543-5790 kubalekb@pasco-wa.gov Federal Tax ID Number:91 -6001 264 Organization/Agency Name:City of Pasco Cinco De Mayo Application for 2025 Pasco Lodging Tax Funds 15,000AmountofLodgingTaxRequested:$ Type:Non-Profit For—Profit -PublicA en State:WA Zip:99301MailingAddress:525 N.3rd Ace City'Pasco Requested Pasco Lodging Tax Funds:15'000 TOTAL BUDGET:$65,000 TOTAL $ $15,000 Please attached the following (if applicable)to your application: If your agency is a non-profit a copy of your agency's current non-profit corporate registration with the Washington Secretary of State. Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Title of Proposed Use/Activity:,_Cinco de Mayo Festival Scope 0f Work The Cinco de Mayo Festival is a Hispanic Cultural event held on the first Saturday of (Will be May each year.The event includes,food,booths,music,dancing,vendors and more. included in Estimated Attendance at the event in 2024 was approximately 13,700. Contract): Funding Outline: Non-Pasco Lod in Tax Sources:Amount:Uses of Pasco Lod in Tax:Amount: General Fund 35,000 Tourism Marketing Sponsorships 15,000 Event/FestivalMarketing/Operation 15,000 Tourism Facility Operation Contact Name and Title:Brent Kubalek Page 97 of 258 Sq Date 8/22/24 The State of Washin .on re uires an estimate for the followin .uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Surve :Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). A (1'ct I f d t .l d .'d What method was used to s a we resu t 0 your propose ourism-re ate serVIce,prom e an determine attendance in previous estimate of:years? a.Overall Attendance Direct Count Enter the total number of people predicted to P d't d- 13’700 Indira“CW!“ attend this activity and select the method used to re 'c e ‘Representat've survey .Informal Survey determine the attendance.III Structured Estimate b.Attendance,50+Miles 1600 Direct Count Number of people predicted to travel more than Predided_Indirect Count 50 miles to attend this activity and select the ‘Representative survey method used to determine the attendance.'"fmma'5””? Structured Estimate c.Attendance,Out of State,Out of Country 900 Direct Count Of the total listed in "b"above,number of people ..accordin predicted to travel from another state and country Pred'CtEd'g to Placer.ai and select the method used to determine the report attendance. d.Attendance,Paid for Overnight Lodging 200Enterthenumberofpredictedtoattendthisactivity and pay for overnight lodging and select the method used to determine the attendance. e.Attendance,Did Not Pay for Overnight Lodging 13500 Enter the number of predicted to attend this activity Predicted: without paying for overnight lodging and select the method used to determine the attendance. f.Paid Lodging Nights Predicted: Enter the number of predicted paid lodging nights and select the method used to determine the attendance.100 Lodging night =one or more persons in one room Indirect Count Representative Survey Informal Survey Structured Estimate Direct Count Indirect Count Representative Survey Informal Survey Structured Estimate Direct Count Indirect Count Representative Survey Informal Survey Structured Estimate Direct Count Indirect Count Representative Survey Informal Survey Structured Estimate I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. I o Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. Signature:Name (Printed):Brent Kubalek Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Predicted: Page 98 of 258 Email:me uadeL@ asco-wa.ov PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975-9683 Application Deadline:Friday,August 30th by 5:00 pm. Page 99 of 258 City of Pasco Lodging Tax Fund Overview Pasco's Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: -The estimated amount of Lodging Tax Fund available for the coming year as provided by the City's Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism—relatedfacilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism—related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or othenivise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. o "Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 100 of 258 E{15m 4 Federal Tax ID Number:91 -6001 264 Organization/Agency Name:City of Pasco Application for 2025 Pasco Lodging Tax Funds 10,000AmountofLodgingTaxRequested:5 Type:Non—Profit For—Profit PublicA enc Email Address:509-543—5790 kubalekb@pasco-wa.gov State:WA Zip:99301MailingAddress:525 N.3rd Ace City:Pasco TOTAL 5 $10,000 Requested Pasco Lodging Tax Funds:10,000 TOTAL BUDGET:5 45000 Please attached the following (if applicable)to your application: 0 If your agency is a non—profita copy of your agency's current non-profit corporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Title of Proposed Use/Activity:Fiery Foods Festival Scope 0f Work The Fiery Foods Fest is a celebration of hot and flavorful foods from many cultures and (Will be is held on a Saturday in September each year.The event includes,food tasting,food included in contests,booths,music,dancing,vendors and more.Attendance at the event is Contract):approximately 5,500. Funding Outline: Non-Pasco Lod in Tax Sources:USES0f PBSCOLOd in Tax:Amount: General Fund 25,000 Tourism Marketing Sponsorships 10,000 Event/FestivalMarketing/Operation 10,000 Tourism Facility Operation Amount: Contact Name and ““6:Brent Kubalek Phone: Page 101 of 258 CL’7/?! Date:8/22/24 The State of Washin ton requires an estimate for the followin questions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Surve :Information collected directly from individual visitors for participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). As a direct result of your proposed tourism-related service,provide an estimate of: a.Overall Attendance Enter the total number of people predicted to attend this activity and select the method used to determine the attendance. b.Attendance,50+Miles Number of people predicted to travel more than 50 miles to attend this activity and select the method used to determine the attendance. 5,500 Predicted: 650 Predicted: c.Attendance,Out of State,Out of Country Of the total listed in "b"above,number of people predicted to travel from another state and country and select the method used to determine the attendance. d.Attendance,Paid for Overnight Lodging Enter the number of predicted to attend this activity and pay for overnight lodging and select the method used to determine the attendance. 440 Predicted:according to Placerai report 100 Predicted: e.Attendance,Did Not Pay for Overnight Lodging Enter the number of predicted to attend this activity without paying for overnight lodging and select the method used to determine the attendance. f.Paid Lodging Nights Predicted: Enter the number of predicted paid lodging nights and 50selectthemethodusedtodeterminetheattendance. Lodging night =one or more persons in one room 5400 Predicted: What method was used to determine attendance in previous vea rs? Direct Count Indirect Count Representative Survey Informal Survey Ill Structured Estimate Direct Count Indirect Count Representative Survey Informal Survey I Structured Estimate 'Direct Count Indirect Count Representative Survey Informal Survey Structured Estimate Direct Count Indirect Count Representative Survey Informal Survey I Structured Estimate Direct Count Indirect Count Representative Survev Informal Survey Structured Estimate Direct Count Indirect Count Representative Survey Informal Survey Structured Estimate I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 o Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have Supporting documentation to verify the expenditure of the funds included in request. Signature:Name (Printed):Brent Kubalek Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Page 102 of 258 u PROPOSED TIMELINEFOR 2024 (2025 BUDGET ) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council Emailzmc uadeL@ asco-wa.ov To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975-9683 Application Deadline:Friday,August 30th by 5:00 pm. Page 103 of 258 City of Pasco Lodging Tax Fund Overview Pasco’s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi—year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: I The estimated amount of Lodging Tax Fund available for the coming year as provided by the City's Finance Office. -Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; .The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or othenNise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. -"Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 104 of 258 Application for 2025 Pasco Lodging Tax Funds Amount of Lodging Tax Requested: $___________ Organization/Agency Name: Federal Tax ID Number: Contact Name and Title: Mailing Address: City: State: Zip: Phone: Email Address: ☐Non-Profit ☐For-Profit ☐Public Agency Type: Title of Proposed Use/Activity: Scope of Work (Will be included in Contract): Funding Outline: Non-Pasco Lodging Tax Sources: Requested Pasco Lodging Tax Funds: TOTAL BUDGET: $ Uses of Pasco Lodging Tax: Tourism Marketing Event/Festival Marketing/Operation Tourism Facility Operation _____________________________ TOTAL $ Please attached the following (if applicable) to your application: •If your agency is a non-profit a copy of your agency’s current non-profit corporate registration with the Washington Secretary of State. •Brochures or other information about your event/activity/facility, in particular items showing recent tourism promotion efforts. (Optional) Amount:Amount: Page 105 of 258 As a direct result of your proposed tourism-related service, provide an estimate of: What method was used to determine attendance in previous years? a.Overall Attendance Enter the total number of people predicted to attend this activity and select the method used to determine the attendance. Predicted: ☐ Direct Count ☐ Indirect Count ☐ Representative Survey ☐ Informal Survey ☐ Structured Estimate b.Attendance, 50+ Miles Number of people predicted to travel more than 50 miles to attend this activity and select the method used to determine the attendance. Predicted: ☐ Direct Count ☐ Indirect Count ☐ Representative Survey ☐ Informal Survey ☐ Structured Estimate c.Attendance, Out of State, Out of Country Of the total listed in "b" above, number of people predicted to travel from another state and country and select the method used to determine the attendance. Predicted: ☐ Direct Count ☐ Indirect Count ☐ Representative Survey ☐ Informal Survey ☐ Structured Estimate d.Attendance, Paid for Overnight Lodging Enter the number of predicted to attend this activity and pay for overnight lodging and select the method used to determine the attendance. Predicted: ☐ Direct Count ☐ Indirect Count ☐ Representative Survey ☐ Informal Survey ☐ Structured Estimate e.Attendance, Did Not Pay for Overnight Lodging Enter the number of predicted to attend this activity without paying for overnight lodging and select the method used to determine the attendance. Predicted: ☐ Direct Count ☐ Indirect Count ☐ Representative Survey ☐ Informal Survey ☐ Structured Estimate I am an authorized agent of the organization/agency applying for funding. I understand that: •Funds must be expended within the calendar year. •Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. •All funded requests will be monitored for progress and consistency with scope and time line as outlined. •All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. The State of Washington requires an estimate for the following questions below: Direct Count: Actual count of visitors using methods such as paid admissions or registrations, clicker counts at entry points, vehicle counts or number of chairs filled. A direct count may also include information collected directly from businesses, such as hotels, restaurants or tour guides, likely to be affected by an event. Indirect Count: Estimate based on information related to the number of visitors such as raffle tickets sold, redeemed discount certificates, brochures handed out, police requirements for crowd control or visual estimates. Representative Survey: Information collected directly from individual visitors/participants. A representative survey is a highly structured data collection tool, based on a defined random sample of participants, and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Survey: Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants. Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate: Estimate produced by computing known information related to the event or location. For example, one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). Signature:Name (Printed): Date: f.Paid Lodging Nights Predicted: ☐ Direct Count ☐ Indirect Count ☐ Representative Survey ☐ Informal Survey ☐ Structured Estimate Enter the number of predicted paid lodging nights and select the method used to determine the attendance. Lodging night = one or more persons in one room Page 106 of 258 Application Deadline: Friday, August 30th by 5:00 p.m. To be eligible for consideration, your complete proposal must be received via email only by the deadline. The Committee will review proposals in a public meeting on a date to be determined. Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade, Marketing Strategist Email: mcquadeL@pasco-wa.gov Phone: (509) 975-9683 PROPOSED TIMELINE FOR 2024 (2025 BUDGET) Application Timeline August 1 August 30 September TBD October TBD Applications Available Applications Due by 5:00 p.m. LTAC meeting to review and recommend allocations LTAC recommendations presented to City Council Page 107 of 258 General Information City of Pasco Lodging Tax Fund Overview Pasco’s Lodging Tax Fund is the primary source of City funding for activities, operations, and expendituresdesigned to increase tourism. The City has multi-year commitments for the HAPO Center, Gesa Stadiumand tourism promotion services; therefore, those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit andrecommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations, the Committee considers: •The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s FinanceOffice. •Thoroughness and completeness of the proposal. •Percent of the proposal request to the event/facility promotions budget and overall revenues. •Percent of increase over prior year Pasco Lodging Tax funded proposals, if any. •Projected economic impact within the City of Pasco, in particular projected overnight stays in Pascolodging establishments. •The applicant’s financial stability. •The applicant’s history of tourism promotion success. ________________________________________________________________________________________ State Law Excerpts RCW 67.28.1816 – Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: a.Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW; or d.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) or the internal revenue code of 1986, as amended. RCW 67.28.080 – Definitions. •"Municipality" means any county, city or town of the state of Washington. •"Operation" includes, but is not limited to, operation, management, and marketing. •"Person" means the federal government or any agency thereof, the state or any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual. •"Tourism" means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. •"Tourism promotion" means activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists. •"Tourism-related facility" means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities. •"Tourist" means a person who travels from a place of residence to a different town, city, county, state, or country, for purposes of business, pleasure, recreation, education, arts, heritage, or culture. Page 108 of 258 Pisco aid: 'Application for 2025 Pasco Lodging Tax Funds 25,000 Organilamn/Agencv Name:Colima Pasco Friendship and Collaboration Type:5‘N°"""°?t Assn LLC -(COPA )g: zgnggencyFedera'Tax "3 Number:ElN:87-1700200 -a 501 (c)(3)non—pro?tassociation Amount of Lodging Tax Requested:S Contact Name and Title:Carl Holder,Treasurer ”WE:509-845-6193 Ema“Address:holder.carl@gmail.com Mailing Address:p0 BOX5331 City:Pasco State:WA Zip:99302 Ttle of Pro osed U Activi :..'p 55/tv Arts and Culture Productions in Downtown Pasco SCOPE0f Work Sustainable production of Encanto for COPA Symphony Fiesta Concert(s)in Downtown (Will be Pasco.This grant willensure that over 30 professional symphony and up to 20 choir included in performers willreceive funding to produce a free-to-the-public concert. Contract): Funding Outline: Non-Pasco LodgingTax Sources:Amount:Uses of Pasco LodgingTax:Amount: Personal &tribal 15,000 Tourism Marketing 6,000 Corporate &Non-pro?t 35,000 Event/FestivalMarketing/Operation 60,000 Port authority 5000 Tourism Facility Operation 10,000 25,000RequestedPascoLodgingTaxFunds: TOTAL BUDGET:5 80,000 TOTAL 5 76,000 -If your agency is a non-pro?t a copy of your agency’s current non-pro?t corporate registration with the Washington Secretary of State. -Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Page 109 of 258 The State of Washingt_o_nregulres an estimate for the following Questionsbelow: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs ?lled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raf?e tickets sold,redeemed discount certi?cates,brochures handed out,police reQUIrementsfor crowd control or visualestimates. Representative Survey:Information collected directly from Individual visitors/participants.A representative survey Is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Survey:Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informalsurvey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. StructuredEstimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the International building code allowance for persons (3 squarefeet). -...What method was used to If:direct fresultofyourproposed tourism-related sewioe,provule an determine attendance In previous e mate 0 1 years? a.Overall Attendance 1 500 '3‘Dire“Count Enter the total number of people predicted to Pr (Med. 1 8Indirect Count attend this activity and select the method used to e '' D ?z?zlriémvzysuwey determine the attendance.III Structured Emma“, b.Attendance,50+Miles f 200 El Direct Com Number of people predicted to travel more than Predicted'El IndirectCount 50 miles to attend this activity and select the D Representative Survey method used to determine the attendance.D '"f°"“a'5“"97 'Structured Estimate c.Attendance,outofState,Out of Country 50 E Direct Count Of the total listed in b above,number of people El Indirect Count predicted to travel from another state and country mam“:a Representative Survey and select the method used to determine the Cl Informal Survey attendance.[3 Structured Estimate d.Attendance,Paid for Overnight Lodging 300 III DII'ECtCount Enter the number of predicted to attend this activity , D '"d'rm CM“ d f ,h I d .d I ct th h d Predicted.CI Representative Survey an pay or overnig t o ging an se e e met 0 El Immal Survey used to determine the attendance.5)Structured Esumate e.Attendance,Did Not Pay for Overnight Lodging 600 3mix“;.-..0U Enterthe numberofpredictedtoattendthis actIVIty Framed:El Represenmwe Survey Without paying for overnight lodging and select the g Informal 5mg, method used to determine the attendance.U Structured Estimate...CI Direct Countf.Paid Lodging Nights .‘~.Predlded:El Indirect Count Enter the number of predicted paid lodging nights and 400 El R m 5 select the method used to determine the attendance.El Inizrfnserunr;urvey Lodgingnight =one or more persons in one room l2]Structured Estimate I am an authorized agent of the organization/agency applying for funding.I understand that: Funds must be expended within the calendar year. 0 Reporting requirements meeting state guidelines outlined in this application must be submitted with ?nal request for reimbursement. All funded requests will be monitored for progress and consistency with scope and time line as outlined. Allrequests for reimburseme for approved costs shallbe in writing and shall have supporting documentat'to verify the xpenditure of the funds included in request. Name (Printed):Carl HolderSignature: Date:8/12/2024 Page 110 of 258 Pitsco ailsI"Application for 2025 Pasco Lodging Tax Funds 10,000AmountofLodgingTaxRequested:$ organization/Agency Name;Columbia Basin College Foundation Type:I 25:19:13? imeralTax ID Number:91-1307538 PUbHCAgenC—y—l Coma“Name and Title:Scott Rogers,Athletic Director Phone:509—542-4834 Email Address;srogers@columbiabasin.edu Mailing Address:Zip2600N20thAveCity:Pasco ‘99301 T'I fP d ":“0 repose use/ACWWNWAC 2025 Women's Volleyball Championships_____—_| Scope 0fW0rk Columbia Basin College has submitted a bid to host the 2025,2026,and 2027 NWAC (Will be Volleyball Championships.Presentations to the NWAC Executive Board are scheduled included in for October 10,2024.The 2025 tournament will be held the weekend Of November Contract):24-26,2025.Eight teams will participate in the single -e|imination tournament.In addition to teams CBC will welcome officials coaches familv,friends,and soectator trll Funding Outline: Non-Pasco LodgingTax Sources:Amount:Uses of Pasco LodgingTax:Amount; Visitor/Convention $1,000 Tourism Marketing $2,000 Ticket Sales $10,000 Event/FestivalMarketing/Operation $8,500 W—W Tourism Facility Operation $10,000 W $15,500RequestedPascoLodgingTaxFunds: TOTAL BUDGET:$26,000 TOTAL 326,000 Please attached the following (if applicable)to your application: 0 If your agency is a non-profit a copy of your agency’s current non—profitcorporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Page 111 of 258 The State of Washington requires an estimate for the following questions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Representative Survey:Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Survey:Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet).' A d'l f d ,I d _'d What method was used to S a irect resu t 0 your propose tourism-re ate serwce,pFOVI e an determine attendance in previous estimate of:years? a.Overall Attendance Direct Count Enter the total number of people predicted to ’ 500 Indirect Count attend this activity and select the method used to Pred'CtEd:Rapresentative survey determine the attendance.1 Informal survey Structured Estimate b Attendance 50+Miles -'’Direct Count200NumberofpeoplepredictedtotravelmorethanPredicted'Indirect Count 50 miles to attend this activity and select the RepresentatiVe Survey method used to determine the attendance.'“forma'Survey I Structured Estimate c.Attendance,Out of State,Out of Country..100 Direct CountOfthetotallistedin"b"above,number of people .Indirect Count predicted to travel from another state and country Pred'Cted: Representative Survey and select the method used to determine the Informal Survey attendance.'Structured Estimate d.Attendance,Paid for Overnight Lodging I DireCt Count Enter the number of predicted to attend this activity P ._ 200 mm“CWT“ __FEdICted-Representative SurveyandpayforovernightlodgingandselectthemethodInformalSurvey used to determine the attendance..Structured Estimate Attendance,Did Not Pay for Overnight Lodging 300 Fig?“fiuttntnlrec0EnterthenumberofpredictedtoattendthisactIVItyPredicted:Representative Survey Without paying for overnight lodging and select the Informalsljrvey method used to determine the attendance.-Structured Estimate I Paid Lodging Nights Direct Count Enter the number of predicted paid lodging nights and 225 gedliirfgigceSurveselectthemethodusedtodeterminetheattendance.p y L cl ..h _Informal Survey 0 ging nig t—one or more persons in one room Structured Estimate e. f.Predicted: I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 Reporting requirements meeting state guidelines outlined in this application must be submitted with ?nal request for reimbursement. o All funded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement fo I...proved costs shall be in writing and shall have supporting Name (Printed): ‘ "‘4 Date: Page 112 of 258 PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council Application Deadline:Friday,August 30th by 5:00 pm. To be eligible for consideration,your complete proposal must be received via email only by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Email:mcguadeL@pasco—wa.gov Phone:(509)975—9683 Page 113 of 258 General information City of Pasco Lodging Tax Fund Overview Pasco’s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi——year commitments for the HAPO Center,Gesa Stadiumandtourismpromotionservices,therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: 0 The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent ofthe proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments.- o The applicant’s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: 9’ Tourism marketing;. b.The marketing and operations of special events and festivalsdesigned to attract tourists, c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or 01.Supporting the operations of tourism—related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 -Definitions. 0 ”Municipality"means any county,city or town of the state of Washington. 0 ”Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. 0 ”Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 ”Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. Page 114 of 258 Pasco aid:I"Application for 2025 Pasco Lodging Tax Funds 4,000 Amount of Lodging Tax Requested:S Type:E]Non-Profit E]For-Profit El Public Agency Organizamn/ASEMY Name:Tri-Cities Juneteenth Community council Federal Tax ID Number:81-3459271 Contact Name and Title:Irving L Brown Sr ”'0”:509-366-2790 Ema"Address;irving@juneteenthtcwa.org Mailing Address:PO,Boc 3055 City:pasco State:WA Zip:99302 Title of Proposed Use/Activity:Director SCOPE0f WOYk Juneteenth Community work in the Tri-Cities area impacts the local communities (WIII be of Pasco,Kennewick.and Richland.as well as surrounding areas.by promoting included in awareness and celebration of Juneteenth.commemorating the emancipation of Contract):enslaved African Americans in the United States.This work involves organizing events educational nrnnrams.and mmmunitv outreach efforts to enoaoe residents Funding Outline: Non-Pasco LodgingTax Sources:Amount:Uses of Pasco Lod in Tax:Amount: Tourism Marketing Event/FestivalMarketing/Operation 4,000.00 Tourism Facility Operation Requested Pasco Lodging Tax Funds: TOTAL BUDGET:3 SE o if your agency is a non-pro?t a copy of your agency’s current nonprofit corporate registration with the Washington Secretary of State. -Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) mm 3 4,000.00 Page 115 of 258 The State of Washington requires an estimate for the following guestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include Information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out.police requirements for crowd control or visualestimates. Representative Survey:Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a de?ned random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Survey:Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example.one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to As a direct result of your proposed tourism-related service,provide an demm‘ne attendance In prams estimate of:years? a.Overall Attendance 200 i:Direct Count Enter the total number of people predicted to _E Indirect Count Predicted:C Representative Surveyattendthisactivityandselectthemethodusedto ‘ Eire ISdeterminetheattendance.""“3 urvev D Structured Estimate b.Attendance,50+Miles 3 Dirac,count.50Numberofpeoplepredictedtotravelmorethanmama:B Indirect Count 50 miles to attend this activity and select the Cl Representative Survey method used to determine the attendance.D '"m'ma'SUNSVUStructuredEstimate c,Attendance,Out of State,Out of Country 5 D mm tom of the total listed in "b“above,number of people _El Mum Count predicted to travel from another state and country Pred'm’d:El Represemame Survey and select the method used to determine the C]informal Survey attendance.D Structured Estimate d.Attendance,Paid for Overnight Lodging El Direct Count E ,...0 El Indirect CountnterthenumberofpredictedtoattendthisactivrtyPredmd:D Representative Survey and pay for overnight lodging and select the method C1Informal Survey used to determine the attendance.5 5mm,“Estimate e.Attendance,Did Not Pay for Overnight Lodging 0 %F';?“;‘z:"“ ,t t .n "'5 Un Enter the numberofpredictedtoattendthis actiwty Predicted:E]Representauve Survey without paying for overnight lodging and select the g WWMZISUNEV method used to determine the attendance.El Structured Estimate f.Paid Lod in Ni hts , D ”"5“CW“3 E S ....Predicted:l2}Indirect CountEnterthenumberofpredictedpaidlodgingnightsand_0 Cl Representative Survey select the method used to determine the attendance. ...El Informal Survey Lodging night =one or more persons in one room [I Structured Estimate I am an authorized agent of the organization/agency applying for funding I understand that: -Funds must be expended within the calendar year. I Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. o Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. a All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to erify t expenditure of the funds included in request. Name (Printed):Irving L Brown SrSignature: Date: Page 116 of 258 PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council Application Deadline:Friday,August son.by 5:00 pm To be eligible for consideration,your complete proposal must be received via email only by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Email:mcguadenggascorwa gov Phone:(509)9753683 Page 117 of 258 General Information City of Pasco Lodging Tax Fund Overview Pasco‘s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created 3 Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: o The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. -Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. -Percent of increase over prior year Pasco Lodging Tax funded proposals,if any..Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant‘s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 -Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: a.Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. I "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. -"Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. -"Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. -"Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. Page 118 of 258 Application for 2025 Pasco Lodging Tax Funds - 1 000.00 Amount of Lodging Tax Requested:$ Organization/MSW Name:BlueMountain Resource Conservation &TYPE:—“On-Wit Development Council EFor—Fro?t L.Public Agency Federal Tax lD Number:91-2152491 Contact Name and Title:Jill Holman,2025 SWIM the SNAKE Event Coordinator ’ iPhonet(602)206-5572 Email Address:iilbage@yahoo.com Mailing Address:P.O_BOX594 CitVIWaitsburg Title of Proposed Use /Activity:Fund-raising open water swimming and paddling event in the Snake River. Scope of work Promotional events using social media platforms,print and radio advertising.Regional (Will be outdoor actvity magazines and online calendars of events,online advertising. included in Commemorative T—shirtsfor all participants,website promotion,discounts for local Contract);restaurants and selected lodging for overnight participants. Funding Outline: WW Amount:Uses of Pasco LodgingTax:Amount: Columbia Co.LT funds 1000.00 Tourism Marketing 50000 Sponsor donations 900.00 Event/FestivalMarketing/Operation 500.00 Tourism Facility Operation REQUEStedPasco Lodging Tax Funds:100000 TOTAL BUDGET:$2900.00 TOTAL 3 1000-00 'rapolica?onPieaseattachedthefaitewm.. o If your agency is a non—pro?t a copy of your agency’s current non-profit corporate registration with the WashingtonSecretary of State. 0 Brochures or other information about your event/activity/faciiity,in particular items showing recent tourism promotion efforts.(Optional) Page 119 of 258 The State of Washington reguires an estimate for the following Questionsbelow: Birect Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. indirect Count:Estimate based on information related to the number of visitors such as raf?e tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Representative Survey:information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. informal Survey:information collected directly from individual visitors or participants in a non—random manner that is not representative of all visitors or participants.informal survey results cannotbe projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to determine attendance in previous yea rs? E Direct Count 13 Indirect Count D Representative Survey E informal Survey D Structured Estimate As a direct result of your proposed tourism-related service,provide an estimate of: a.Overall Attendance Enter the total number of people predicted to attend this activity and select the method used to determine the attendance. b.Attendance,50+Miles Number of people predicted to travel more than 50 miles to attend this activity and select the method used to determine the attendance. Predicted:11O E]Direct Count Ci Indirect Count El Representative Survey [3 informal Survey D Structured Estimate Predicted:200/0 c.Attendance,Out of State,Out of Country Of the total listed in "b"above,number of people predicted to travel from another state and country and select the method used to determine the attendance. cl.Attendance,Paid for Overnight Lodging Enter the number of predicted to attend this activity and pay for overnight lodging and select the method used to determine the attendance. [El Direct Count 3 indirect Count D Representative Survey D informal Survey [3 Structured Estimate Cl Direct Count D indirect Count D Representative Survey 13 informal Survey D Structured Estimate D Direct Count :3 indirect Count El Representative Survey E]informal Survey D Structured Estimate I2 Direct Count E indirect Count D Representative Survey El Informal Survey D Structured Estimate 20%Predicted: Predicted:100/4) e.Attendance,Did Not Pay for Overnight Lodging Enter the number of predicted to attend this activity without paying for overnight lodging and select the method used to determine the attendance. f.Paid Lodging Nights Enter the number of predicted paid lodging nights and select the method used to determine the attendance. Lodging night =one or more persons in one room 0 Predicted:4'0 /° 0 Predicted:10 /° I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 fepsttsxg satin-g state geééetirres outlined Er:this aeeéécatéc fine?greenest to?reimbursement. Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. Allrequests for reimbursement for approved costs shall be in writing and shall have supporting documentationto verify the expenditure of the funds included in request. niremerzta .a ?gs“?fee saémitted 35.55%: Signature:‘2 Name (Printed):Jill Holman Date:August 28,224 Page 120 of 258 PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council gsswatier Seediéne:Maggy,géegzgst 353%:be 333$are To be eligible for consideration,your complete proposal must be received via email only by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City‘s website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Email:mceeeéei@ asses-sage; Phone:(509)975-9683 “‘3“; Page 121 of 258 — City of Pasco Lodging Tax Fund Overview Pasco’5 LodgingTax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi—year commitments for the HAPO Center Gesa Stadiumandtourismpromotionservices;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicitand recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: o The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: a.Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism—related facilities owned or operated by nonpro?t organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RON 67.28.080 --Definitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 “Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. -"Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist”meansa person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. Page 122 of 258 Hum .44 é~a % cy Application for 2025 Pasco Lodging Tax Funds 30,000 Amount of Lodging Tax Requested:$ Organization/Agency NamezEncantoArts Type:Non-Profit For-Profit PublicA en Federal Tax ID Number:83-3067406 Ph°ne=2063840983 Ema”Addrest president@encantoarts.org Mal'lngAdd’essnsssDelridge Way Sw CitySeattle State=WA ZiID© 8106SuiteA T'l fP dU A ":We 0 mpose 58/“MW Night of the Charro:Celebrating Charro and Western Culture Scope of Work Please see attached! (Will be included in Contract): Funding Outline: Non-Pasco Lod in Tax Sources:Amount:Uses of Pasco Lod in Tax:Amount: Advertising 3,000 Tourism Marketing 5,000 Mea|s for Artists 2000 Event/FestivalMarketing/Operation 2,000 Hotel Rooms 5000 Tourism Facility Operation 3,000 Requested Pasco Lodging Tax Funds:30,000 30 Horse maintenance 201000 TOTAL BUDGET:540,000 TOTAL 530,000 Please attached the following (if applicable)to your application: 0 If your agency is a non-profit a copy of your agency‘s current non-profit corporate registration with the Washington Secretary of State. -Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) COMM Name and Title Jose Iniguez.Executive Director Page 123 of 258 B‘l Date 8/29/2024 The State of Washin .on re uires an estimate for the followin .uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs ?lled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and con?dence level. Informal Surve :Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). ....What method was used to As a direct result of your proposed tourism-related semice,prowde an determine attendance in previous estimate of:years? a.Overall Attendance 5 000 Direct Count Enter the total number of people predicted to _ ’Indirect Count attend this activity and select the method used to Predmed:Rapresentative survey d t .h d Informal Survey e ermine t e atten ance.Structured Estimate b.Attendance,50+Miles 1 000 Direct Count Number of people predicted to travel more than Predicted. ’Indirect Count 50 miles to attend this activity and select the 'Representative Survev Informal Surveymethodusedtodeterminetheattendance.,Structured Estimate c.Attendance,putofState,Out of Country 1 000 Direct Count Of the total listed In "b"above,number of people Indirect Count predicted to travel from another state and country Pmdicmd:Representative Survey and select the method used to determine the Informal Survey attendance.Structured Estimate d.Attendance,Paid for Overnight Lodging 1 000 Direct Count 1 Indirect Count PFEdICIEd:Representative Survey Informal Survey Enter the number of predicted to attend this activity and pay for overnight lodging and select the method used to determine the attendance.Structured Estimate e.Attendance,Did Not Pay for Overnight Lodging 4,000 Fitting?”t-...n ire oun Enterthe numberofpredictedtoattendthis actIVIty Predicted:Representative Survey Without paying for overnight lodging and select the Informa|survey method used to determine the attendance.Structured Estimate f.Paid Lod in Ni hts .Direc‘cm‘mggg....P’Ed'de‘t Indirect CountEnterthenumberofpredictedpaidlodgingnightsand1000Rtt'Sselectthemethodusedtodeterminetheattendance.’ epresen a we ”Nev Informal Survey Lodging night =one or more persons in one room Structured Estimate I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 All funded requests will be monitored for progress and consistency with scope and time line as outlined. a All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. Signature:Name (Printed):JOSE miguez Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Page 124 of 258 Emailzmc uadeL@ asco-wa.ov PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975-9683 Application Deadline:Friday,August 30th by 5:00 pm. Page 125 of 258 City of Pasco Lodging Tax Fund Overview Pasco's Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures- designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: -The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant's financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism—related facilities owned or operated by nonpro?t organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 -De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. -"Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 126 of 258 UBI # 604 353 589| EIN # 83-3067406 501c3 City of Pasco Business License - Non Resident #41175 Encanto Arts 4838 Delridge Way Sw Suite A Seattle, WA 98106 president@encantoarts.org www.encantoarts.org Project Title: "A Night of the Charro: Celebrating Charro and Western Culture in Eastern Washington Project Overview: This project aims to produce a vibrant cultural event in Pasco, WA, titled "A Night of the Charro," celebrating the rich traditions of charro culture alongside the western heritage of Eastern Washington. The event will feature performances by the region's best charros, showcasing their majestic dancing horses, accompanied by live mariachi music. The event will serve as a cultural exchange, highlighting the beauty of Western Mexican culture and its infiuence on the broader Western traditions of Eastern Washington. Project Objectives: 1. Cultural Preservation and Celebration: o Showcase the rich heritage of charro culture, including traditional horsemanship, attire, and music. o Celebrate the fusion of Mexican and Western cultures in Eastern Washington, promoting cultural understanding and appreciation. 2. Community Engagement and Inclusion: o Provide an opportunity for the community to experience and participate in a unique cultural event that highlights the diversity of the region. o Encourage participation from local and regional charro groups, , and community organizations. Showcaase a production of Horsmanship of over 30 horses in a Night production for all to see!! 3. Economic and Cultural Impact: o Attract visitors to Pasco, WA, boosting local tourism and supporting the local economy. o Position Pasco as a cultural hub for events that celebrate Mexican and Western traditions, fostering a sense of pride and community identity. Scope of Work: Page 127 of 258 1. Event Planning and Coordination: o Venue Selection and Preparation: Identify and secure a suitable venue in Pasco, WA, with the necessary infrastructure for showcasing dancing horses and accommodating large audiences. Coordinate with local authorities for permits and safety measures. o Talent Recruitment: Engage the best charros in the region, inviting them to participate in the event. Work with local and regional mariachi bands to provide live music, ensuring an authentic and high-quality performance. o Cultural Programming: Develop a comprehensive program that includes charro demonstrations, live mariachi performances, and cultural exhibitions that highlight the traditions of charro and Western culture. 2. Marketing and Promotion: o Community Outreach: Engage local communities, cultural organizations, and schools in Eastern Washington to raise awareness and encourage participation in the event. o Advertising Campaign: Develop and implement a multi-channel marketing strategy, including social media, local media, and print advertising, to attract a diverse audience from across the region. o Partnerships and Sponsorships: Identify and secure partnerships with local businesses, cultural organizations, and sponsors to support the event flnancially and logistically. 3. Logistics and Operations: o Safety and Compliance: Work with local authorities and animal welfare organizations to ensure the safety and well-being of the horses and participants. Implement crowd control measures and ensure compliance with all relevant regulations. o Event Setup and Management: Coordinate all logistical aspects of the event, including stage and arena setup, sound and lighting, seating arrangements, and vendor management. Ensure smooth operations on the day of the event with a dedicated team of staff and volunteers. Page 128 of 258 o Post-Event Evaluation: Conduct a thorough evaluation of the event, including attendance metrics, participant feedback, and flnancial performance. Prepare a report summarizing the outcomes and lessons learned for future planning. 4. Budget and Financial Management: o Budget Development: Create a detailed budget outlining all costs associated with the event, including talent fees, venue rental, marketing, logistics, and administrative expenses. o Grant Management: Ensure that all grant funds are allocated and spent in accordance with the grant guidelines. Maintain accurate flnancial records and prepare reports as required by the grantor. 5. Cultural and Educational Impact: o Workshops and Demonstrations: Include educational components such as workshops on charro traditions, the history of mariachi music, and the infiuence of Mexican culture on the American West. o Cultural Exhibits: Set up exhibits that display traditional charro attire, saddlery, and other cultural artifacts, providing attendees with a deeper understanding of the cultural signiflcance of the event. Timeline: • Month 1-2: Planning and Coordination • Month 3-4: Talent Recruitment and Marketing Launch • Month 5-6: Final Preparations and Event Execution • Month 7: Post-Event Evaluation and Reporting Expected Outcomes: • A successful cultural event that attracts a diverse audience and showcases the rich traditions of charro and Western culture. • Increased awareness and appreciation of Mexican heritage in Eastern Washington. • Strengthened community ties and enhanced cultural exchange between local and regional participants. Page 129 of 258 Sustainability Plan: • Explore opportunities to make "A Night of the Charro" an annual event in Pasco, WA. • Develop partnerships with local cultural institutions to continue promoting charro culture and its signiflcance in the region. This scope of work outlines a comprehensive approach to producing a culturally signiflcant event that honors the traditions of charro and Western culture while engaging and enriching the community of Pasco, WA. Page 130 of 258 (.‘tn'r dSCO iii-TIEI"Application for 2025 Pasco Lodging Tax Funds 10,000AmountofLodgingTaxRequested:$ Organization/Agency Name:Type:E Non-Profit For—Profit Public Agency Columbia Basin College Foundation Federal Tax ID Number:91—1307538 coma“Name and we:Scott Rogers,Athletic Director Phone:Email Address:509-542-4834 srogers@columbiabasin .edu Mailing Address:City:2600 N 20th Ave Pasco T'l fP dU A ":'teo ropose se/th'ty NWAC 2025 Men's and Women's Basketball Championships 4 SCOpe of Work Columbia Basin College has been selected as the site of the NWAC Basketball (Will be Championships for 2023,2024,and 2025.The tournamednts will be held over two included in weekends (Sweet Sixteen and Elite Eight first weekend,Final Four and Championships Contract):the next)in March with 16 men's and 16 women's teams participating.In addition to teams CBC wiiill welcome officials coaches friends,and spectators to Pasco Funding Outline: Non-Pasco LodgingTax Sources:Amount:Uses of Pasco LodgingTax:Amount; Visitor/Convention $4,000 Tourism Marketing $3,000 Ticket Sales $30,000 Event/FestivalMarketing/Operation $21 ,500 Sponsorships W Tourism Facility Operation —— Requested Pasco Lodging Tax Funds:$10,000 W $44,500 TOTAL BUDGET:5 69,000 TOTAL $69,000 Please attached the following (if applicable)to your application: 0 If your agency is a non-profit a copy of your agency’s current non-profit corporate registration with the Washington Secretary of State. -Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Page 131 of 258 The State of Washington requires an estimate for the following guestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visualestimates. Representative Survey:Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. informal Survey:information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). ....What method was used toAsadirectresultofyourproposedtourism-related serwce,prowde an determine attendance in previous estimate Of:years? a.Overall Attendance 4 000 Direct Count Enter the total number of people predicted to P d_t d. 'indireCt Count attend this activity and select the method used to re 'C e '?i::::::::$’:ysmey determine the attendance.Ii Structured Estimate b.Attendance,50+Miles 3 500 Direct Count Number of people predicted to travel more than Predicted ’indirect Count 50 miles to attend this activity and select the RePresentativeSurvey method used to determine the attendance.Informa'sun/91y l Structured Estimate c.Attendance,Out of State,Out of Country 700 Direct Count _I Of the total listed in "b"above,number of people _Indirect Count predicted to travel from another state and country Pred'CtEd: Representative Survey and select the method used to determine the informal Survey attendance._ I Structured Estimate d.Attendance,Paid for Overnight Lodging 3 000 Direct Count Enter the number of predicted to attend this activity ., ’Ind'red CWT“ d f _h I d ,l h h d Predicted.Representative Surveyanpayorovernigtogingandseecttemet0InformalSurvey used to determine the attendance..Structured Estimate e.Attendance,Did Not Pay for Overnight Lodging 1 000 ID?“E?“t....1 n II'EC ounEnterthenumberofpredictedtoattendthisactIVItyPredicted:Representative Survey Without paying for overnight lodging and select the Informalsurvey method used to determine the attendance.-Structured Estimate f.Paid Lodging Nights ., Dire“count ....Pred‘CtEd-indirect CountEnterthenumberofpredictedpaidlodgingnightsand800Reresentative Surveselectthemethodusedtodeterminetheattendance.InfirmalSurvey y Lodging night =one or more persons in one room I Structured Estimate i am an authorized agent of the organization/agency applying for funding.i understand that: 0 Funds must be expended within the calendar year. 0 Reporting requirements meeting state guidelines outlined in this application must be submitted with ?nal request for reimbursement. o All funded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for pp ved costs shall be in writing and shall have supporting documentation verify the peedit re of the funds included in request. Name (Printed):Elm F15“WI/1Signature: Date:a{CLIZOZI‘ILPage 132 of 258 PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council Application Deadline:Friday,August 30th by 5:00 pm. To be eligible for consideration,your complete proposal must be received via email only by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Email:mcguadeL@pasco-wa.gov Phone:(509)975—9683 Page 133 of 258 General Information City of Pasco Lodging Tax Fund Overview -Pasco’s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures- designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium “and tourism promotion services;therefore,those applications have priority status for the use of funds.' The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: o The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent ofthe proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: a.Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —Definitions. 0 "Municipality”means any county,city or town of the state of Washington. 0 ”Operation”includes,but is not limited to,operation,management,and marketing. 0 "Person”means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. _0 "Tourism promotion”means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. o "Tourism—relatedfacility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. Page 134 of 258 Pasm DI] Phone:Email Address:5095375136 citymanager@pasco-wa.gov Federal Tax ID Number:91 -6001 264 Application for 2025 Pasco Lodging Tax Funds 14,503AmountofLodgingTaxRequested:5 Type:Non-Profit For-Profit -PublicA enc organization/Agency Name:City of Pasco-Administrative Cost Title of Proposed Use/Activity:,,,Administrative Cost SCOPe01‘Work Management of the fund includes Washington State JLARC reporting,contracting, (Will be budgeting,meeting management,application promotion,application management and included in additional tasks across numerous City departments. Contract): c Funding Outline: Non-Pasco Lod in Tax Sources:Amount:Uses of Pasco Lod in Tax:Amount: Zip:99301MailingAddress:525 N 3rd Ave City:Pasco Tourism Marketing Event/FestivalMarketing/Operation Tourism Facility Operation Fund Administration 14,503 TOTAL 5 14,503 Requested Pasco Lodging Tax Funds: TOTAL BUDGET:$ Please attached the following (if applicable)to your application: 0 If your agency is a non-profit a copy of your agency's current non—profitcorporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Contact Name and Title:Adam LinCOIH,City Manager Page 135 of 258 Ell Date:8/29/24 The State of Washin on re uires an estimate for the followin uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Surve :Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to As adirect result of your proposed tourism-related servrce,provrde an determine attendance in previous estimate of:years? a.Overall Attendance N/A Direct Count Indirect CountEnterthetotalnumberofpeoplepredictedto P d_t d__ attend this activity and select the method used to re 'c e ‘Representat've survey d termine the attendance Informal survey e 'Structured Estimate b.Attendance,50+Miles N/A Direct Count Number of people predicted to travel more than Predicted Indirect Count 50 miles to attend this activity and select the 'Representative Survey method used to determine the attendance.'"fc’rma'survey Structured Estimate c.Attendance,Out of State,Out of Country N/A Direct Count Of the total listed in "b"above,number of people ' Indirect Count predicted to travel from another state and country Pred'md:Representative Survey and select the method used to determine the Informal Survey attendance.Structured Estimate d.Attendance,Paid for Overnight Lodging N/A Direct Count Enter the number of predicted to attend this activity ._ '"d'reCt CWT" d f .h l d .d |h h d Pred'Cte'i Representative Survey an pay or overmgto grng an se ect t e met 0 InformalSurvey used to determine the attendance.Structured Estimate e.Attendance,Did Not Pay for Overnight Lodging N/A :3?“13‘2“t....I’l Irec oun Enterthe numberofpredictedtoattendthis actrvrty Predicted:Representative Survey wrthout paying for overnlght lodging and select the Informal Survey method used to determine the attendance.Structured Estimate f.Paid Lodgin Ni hts ., Dire“C°Unt Enter the nimbgrofpredicted paid lodging nights and Predicted.Indira“Count N/A Representative Survey select the method used to determine the attendance. Lodging night =one or more persons in one room Informal Survey Structured Estimate lam an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 o Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. Signature:Name (Printed):Adam Linco|n Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Page 136 of 258 Email:mc uadeL@ asco-wa.ov PROPOSED TIMELINE FOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTACmeeting to review and recommend allocations October TBD LTAC recommendations presented to City Council To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975—9683 Application Deadline:Friday,August 30th by 5:00 pm. Page 137 of 258 City of Pasco Lodging Tax Fund Overview Pasco’s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures- designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: -The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. -Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant's history of tourism promotion success. State Law Excerpts RCW67.28.1816 -Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —Definitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. o "Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 138 of 258 Pasm It5‘ ; Federal Tax ID Number:91—6001264 Organization/Agency Name:City of Pasco-Marketing Application for 2025 Pasco Lodging Tax Funds 15,000AmountofLodgingTaxRequested:S Type:Non-Pro?t For-Profit I PublicA enc State:WA Zip:99301MailingAddress:525 N.3rd Ave City:Pasco Ph°“e‘509-975-9683 Ema"Address;mcquadel@pasco-wa.gov Requested Pasco Lodging Tax Funds: TOTAL BUDGET:$TOTAL 515. 000Pleaseattachedthefollowing(if applicable)to your application: o If your agency is a non-profit a copy of your agency‘s current non-profit corporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Title of Proposed Use/Activity:___Creation of Tourism Marketing Collateral Scope 0f Work The City of Pasco needs high quality marketing pieces that entice a tourist to visit (Will be Pasco and encourage them to stay longer.Such marketing materials could include included in targeted campaigns on social media,branded items,visually appealing and Contract):printable/downloadable maps,photography and more. Funding Outline: Non-Pasco Lod in Tax Sources:Amount:Uses of Pasco Lod in Tax:Amount: Tourism Marketing 15,000 Event/FestivalMarketing/Operation Tourism Facility Operation “ma“Name and “'6‘Laurel McQuade,Lead Communications Strategist Page 139 of 258 Bl Predicted: Date 8/29/24 The State of Washin on re uires an estimate for the followin uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certi?cates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Surve:Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to As adirect result of your proposed tourism-related sewice,prowde an determine attendance .mprevious estimate of:years? a.Overall Attendance IA Direct Count l‘l Irect OUl‘ItNId‘CEnterthetotalnumberofpeoplepredictedto...p '2 , attend this actIVIty and select the method used to red'ded Representat've survey Informal Survey determine the attendance.Structured Estimate b.Attendance,50+Miles N/A Direct Count Number of people predicted to travel more than Predicted'Indirect Count 50 miles to attend this activity and select the RepresentatiVe Survey method used to determine the attendance.'"forma'survey Structured Estimate c.Attendance,OutofState,Out of Country NIA Direct Count Of the total listed In b above,number of people _Indirect Count predicted to travel from another state and country P’Ed'm‘“Representative Survey and select the method used to determine the Informal Survey attendance.Structured Estimate cl.Attendance,Paid for Overnight Lodging Direct Count N/A Indirect CountEnterthenumberofpredictedtoattendthisactivity.._._Predicted.Representative Survey and pay for overnight lodging and select the method lnformal'Survey used to determine the attendance.Structured Estimate Direct Counte.Attendance,Did Not Pay for Overnight Lodging NIA Indirect count Enter the number of predicted to attend this activity Representative Survey without paying for overnight lodging and select the |nforma|Survey method used to determine the attendance.Structured Estimate f.Paid Lod in Ni hts .Direct Count Enter thegn?mbirofpredicted paid lodging nights and Predlcmd: N/A Eggzterfg?teSurvey select the method used to determine the attendance....Informal Survey Lodging night =one or more persons In one room Structured Estimate lam an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 o Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. Signature:Laurel McQuade Name (Printed):Law-3|McQuade Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Page 140 of 258 u m. PROPOSED TIMELINEFOR 2024 (2025 BUDGET ) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council Email:me uadeL@ asco-wa.ov To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975—9683 Application Deadline:Friday,August 30th by 5:00 pm. Page 141 of 258 City of Pasco Lodging Tax Fund Overview Pasco's Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures- designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: o The estimated amount of Lodging Tax Fund available for the coming year as provided by the City‘s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant’s financial stability. 0 The applicant's history of tourism promotion success. State Law Excerpts RCW67.28.1816 -Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; .The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism—related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 -De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. o "Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 142 of 258 7130 W. Grandridge Blvd., Suite B Kennewick, WA 99336 509-735-8486 1-800-254-5824 www.VisitTRI-CITIES.com info@VisitTRI-CITIES.com August 27, 2024 Ms. Laurel McQuade City of Pasco P.O. Box 293 Pasco, WA 99301 SUBJECT: Visit Tri-Cities 2025 Hotel/Motel Tax Fund Application Dear Ms. McQuade: We appreciate the opportunity to again submit an application for lodging tax to support our efforts to market Pasco and the entire region as a premier travel destination. The City of Pasco and Visit Tri- Cities have a signed agreement for the promotion of tourism that was approved by the Pasco City Council and the Pasco Lodging Tax Advisory Committee (LTAC). The agreement went into effect on January 1, 2021 and will expire on December 31, 2025. The Cities of Kennewick and Richland also have the same agreements established. In order to remain compliant with HB 1253, enclosed is Visit Tri-Cities’ 2025 Hotel/Motel Tax Fund Application for the LTAC to review. By investing lodging tax dollars with Visit Tri-Cities, the City of Pasco receives a multi-faceted approach to marketing the city to visitors, business investors and those looking to relocate. The enclosed application outlines the deliverables and services provided as outlined in the contract. If you would like any additional copies of the application or if I can answer any questions, please contact me. Sincerely, Kevin Lewis President & CEO Enclosures Page 143 of 258 Page 144 of 258 Page 145 of 258 ANNUAL REPORT 2023 VisitTri-Cities.com Page 146 of 258 OUR VISION & MISSION A MESSAGE FROM THE PRESIDENT & CEO AND THE CHAIR OF THE BOARD Dear Tourism Partners, It’s exciting to feel the energy of our team as they enthusiastically work to fuel transformational growth in the Tri-Cities through tourism. 2023 was a year of significant transition. With the support of dedicated partners and community leaders, we called on our leadership team to maintain essential functions while building a platform for greater success. I’m pleased to report we accomplished those objectives, and we’re excited to share some exciting opportunities ahead. Visitors spend nearly $600 million in the Tri-Cities each year. That spending creates more than 5,700 jobs in the area and generates more than $74 million in local tax revenue. Nationally, travel demand was weaker in 2023 with seven straight months of decline. Although hotel occupancy was essentially flat in the Tri-Cities, rising just 0.9% in 2023, average hotel rates were up 7.4% (almost twice the national average). The Tri-Cities saw a 2.5% increase in total visitor trips, the number of new visitors to the area rose nearly 9.2%, and hotel tax revenues increased by $161,436. In 2023, year-over-year increases in average daily rate and revenue per available room in the Tri-Cities were among the highest in the state. In recent months, consumer confidence has risen due to slower inflation and anticipation of lower interest rates ahead. Travel sentiment seems to be improving as well. In the Q4 our sales teams capitalized on some significant opportunities to increase our projected hotel group revenues by 57%. In 2023 we were thrilled to be selected as host for two new signature events coming in 2024: The inaugural IRONMAN 70.3 Washington Tri-Cities race, and the National Horseshoe Pitcher’s World Tournament. In addition to bringing millions in outside revenue into our economy, these events will bolster workforce recruitment and business development by showcasing the destination to a global audience of active, successful people. With IRONMAN, our communities are now connected to one of the most globally recognized endurance and lifestyle brands. One of the most significant team accomplishments in 2023 is the evolution of our messaging strategy. We’ve refined our Vision and Mission statements and restructured all of our strategic messaging to enhance our brand position. This messaging strategy provides a foundation to authentically celebrate the key destination drivers that make our communities distinct. Every potential visitor is on a path of discovery and our goal is to meet them where they are on the path and lead them down the decision-making funnel to discover why this destination is such a great fit. In 2024, our messaging will focus on the five key experience categories that we’ve identified as the true drivers of visitation. Internally, our efforts will align with five strategic pillars that support the foundation and purpose of our organization. As our team embraces the essence of our Vision and Mission statements and works to accomplish our strategic objectives, we are excited to push the boundaries a bit. With creative marketing initiatives, new signature events, and community collaboration, we’ll meet potential visitors on the path of discovery and invite them to celebrate with us. It is rewarding to collaborate with the forward-thinking leaders in our communities to facilitate such positive influence in the area. We’re definitely enthusiastic about the transformational impacts in store. Kevin Lewis President & CEO Visit Tri-Cities Buck Taft Chair of the Board Visit Tri-Cities OUR DESTINATION DRIVERS These are the key experiences that authentically define and celebrate the unique aspects of the destination. As we focus on these core experiences, we elevate the destination brand and guide visitors to the experiences they are seeking. OUR VISION Inspire, reward, and celebrate the spirit of exploration and discovery. OUR MISSION Fuel transformational growth in the Tri-Cities through tourism. OUR STRATEGIC PILLARS STRATEGIC SALES COLLABORATIVE DESTINATION DEVELOPMENT PROACTIVE COMMUNITY ENGAGEMENT INNOVATIVE & MEANINGFUL OPERATIONS EFFECTIVE MARKETING 1 2 Pa g e 1 4 7 o f 2 5 8 FINANCIAL PICTURETOURISM ECONOMIC IMPACT Kennewick Pasco Richland Totals 2020 $277,886 $151,941 $270,733 $700,560 2021 $502,862 $332,854 $581,566 $1,417,282 2022 $672,025 $440,350 $733,662 $1,846,037 2023 $714,098 $498,162 $795,213 $2,007,473 HOTEL-MOTEL TAX REVENUEHOTELS 3,670 Hotel guest rooms available Hotel tax revenue is up $161,436 from previous year, and ADR is up 28.6% from 2021 and up 7.4% from 2022. Hotel occupancy levels rose 0.9% from 2022. TRI-CITY REGIONAL HOTEL-MOTEL COMMISSION KENNEWICK •Nickolas Woody, SureStay Plus Hotel by Best Western Kennewick Tri-Cities •Mark Blotz, Clover Island Inn •Marie Mosley, Ex Officio, City of Kennewick PASCO •Monica Hammerberg, Hampton Inn & Suites Pasco/Tri-Cities •Jerry Beach, A-1 Hospitality •Adam Lincoln, Ex Officio, City of Pasco RICHLAND •Lacey Stephens, Home2 Suites by Hilton •Yesenia Galvez, Holiday Inn Richland on the River •Jon Amundson, Ex Officio, City of Richland Hotel Revenue up $161,436 Occupancy up 0.9% ADR up 28.6% from 2021 ADR up 7.4% from 2022 Tourism in the Tri-Cities generates employment opportunities, visitor expenditures, and tax revenues that positively impact the city and its residents. DIRECT SPENDING creates a positive economic cycle that begins as visitors bring money into the local economy from outside the area. Millions of dollars are infused into our communities directly through visitor spending. These dollars ignite a flame that fuels additional positive economic impacts. INDIRECT IMPACTS come from labor income, suppliers and support businesses, construction, engineering, and other professional services that support the hospitality industry. INDUCED IMPACTS are derived through employee spending, business output, new business development, and enhancements to the quality of life through development of visitor related attractions and services. TAX REVENUES from each of these revenue sources support local services and provide tax relief to residents. HOTELS: $123.8 million 24% increase from previous year TRANSPORTATION: $113.1 million 39% increase from previous year RECREATION: $88.0 million 19% increase from previous year RETAIL: $136.6 million 16% increase from previous year FOOD AND BEVERAGE: $134.2 million 15% increase from previous year VISITOR SPENDING BREAKDOWN Tourism Promotion Area $2,269,747 Marketing $1,093,959 Administration $538,678 40.1% 29.5% 19.8% 5.2 % 5.4% $3,221,440 Total Revenue 70.5% 22.7% City Contracts $731,680 Membership/Corporate $220,013 $2,726,488 Total Expenses Visitor Center $141,761 Membership $148,104 6.8% Convention/Sports Sales $803,986 3 4 Visitor Spending represented in this report reflect the economic impact of tourism in the Tri-Cities for the year of 2022. The economic impacts of tourism in our community for 2023 are not yet available. Percentage increase stated is based off of 2021 numbers. Source: Tourism Economics POLICE OFFICERS FIREFIGHTERS SCHOOLS & TEACHERS SMALL BUSINESSES PARKS ROAD WORK Visitor spending helps support local: Tourism saved each household $581 in annual taxes $594.7 million in economic impact Provides $74 million in state and local tax revenue Provides $59.8 million in local sales tax Employs 5,706 workers Annual Tourism Benefits to the Tri-Cities Pa g e 1 4 8 o f 2 5 8 EFFECTIVE MARKETINGSTRATEGIC SALES 156 Conventions, sports & group activities Down 2% from previous year 121,048 Visitors attracted Up 9% from previous year $26,774,874 Convention and sports spending to region Up 6.3% from previous year The sales department’s primary focus is to market to convention, sports, and group meeting planners through direct sales contacts, targeted marketing, and attending industry events. These activities mean “heads in beds” that generate significant tax revenues for our community. 2023 PROGRAM HIGHLIGHTS 2024 & BEYOND 121 Future conventions, meetings and sports events booked 140,765 Future visitors $49,464,202 Future visitor spending Trips Made: 4.7 million Days Spent: 9.9 million Unique Visitors 1.7 million HIGHLIGHTS Each year, Visit Tri-Cities creates and implements a comprehensive marketing strategy aimed at increasing brand recognition and attracting visitors to the Tri-Cities region. To ensure maximum reach among potential visitors, Visit Tri-Cities employs a range of effective tactics, including digital advertising, media relations, social media, and print. This multi-faceted approach allows for broad and diverse audience engagement, ultimately raising awareness of the Tri-Cities destination. 2023 HIGHLIGHTS •Launched 2023 Visitor Guide •Launched seven digital marketing campaigns •Achieved $100:$1 return on investments with Datafy digital ad campaigns •12% increase in social media followers through organic content since July 2023 •Created Destination Manifesto video •Created videos for Four Key Visitor Experience Categories •Refreshed marketing Brand Book & Style Guide to support messaging strategy •Directed rework of 2024 Visitor Guide to support messaging strategy •Incorporated HTML animated digital ads for dynamic content •Upgraded booth presence at Taste Washington Trade Show MEDIA OUTREACH 32,597 Facebook Followers 9% increase from previous year 14,443 Instagram Followers 20% increase from previous year 2,877 LinkedIn Followers 21% increase from previous year Hosted 12 successful FAM tours with 16 media representatives 56 Pieces of coverage 215K Views 27.4 million in audience reach VISITOR CENTER INQUIRIES Telephone calls 1,353 in 2022 In-person Visitors 760 in 2022 786 573 Tourism campaigns deployed in 2023 earned: •23,257,277 Impressions •105,543 Click throughs CAMPAIGN HIGHLIGHTS WEBSITE HIGHLIGHTS 829,097 Pageviews 54% Increase from previous year 312,709 Unique Visitors 13% Increase from previous year COMING IN 2024 Sales & Client Relationship Building •Hosted Spring Olympia Sales Blitz & Customer Appreciation Luncheon reaching 39 meeting planners •Conducted 18 appointments at the Fall Olympia Sales Blitz •Hosted hospitality sales training for hotel/venue partners •Hosted Sports Customer Appreciation Event in Portland •Attended seven industry related events to meet with meetings and sports planning professionals Secured Major Events •2024-2026 IRONMAN Triathlon •2024 & 2027 National Horseshoe Pitchers Association • World Championships •2024-2027 WIAA State Cross Country Championships •2024 Convention of Jehovah’s Witnesses – four weekends (July/August) •2025 International Cherry Symposium •2024-2027 Washington Association for Pupil Transportation Conference and Trade Show •2024 Washington Elementary Chess Championships •2023 Latino World Series (softball) – United States Specialty Sports Association •2024 US Tennis Association PNW Mixed 40 & Over and Mixed 55 & Over Section Championships5 6 *see back cover for more details Pa g e 1 4 9 o f 2 5 8 PROACTIVE COMMUNITY ENGAGEMENT COLLABORATIVE DESTINATION DEVELOPMENT Annual Meeting Showcase •Engaged the community in the launch of our new messaging strategy showcasing core visitor experience categories with new video assets and highlights from individuals in the community with more than 450 attendees Engagement Initiatives •Manhattan Project National Park and World War II Heritage •American WWII Heritage City Designation Campaign •Launched dedicated webpage showcasing community assets related to WWII, the Manhattan Project, and the Manhattan Project National Historical Park •Produced a WWII Heritage City window cling for local organizations and businesses to display •V TC support for Ride with a Ranger •Staff participated in Manhattan Project educational tour •Coordination of the Tri-Cities National Park Committee and related efforts •Chaired the Tri-Cities Legislative Council •Engaged with representatives to support community initiatives •Testified at Legislative Session on tourism initiatives •Community Collaboration •Annual and Mid-Year Reports to City Councils •Collaboration with communities and agencies on tourism development issues •Presentations for civic groups, Washington Roundtable CEO Tour, and others •Board representation: Tri-City Water Follies, Bike Tri-Cities, TRIDEC, Tri-City Regional Chamber of Commerce, Pasco Chamber of Commerce, Benton-Franklin Council of Governments, and WSDMO •Committee representation: Kennewick, Pasco, and Richland Lodging Tax Advisory Committees •Formed the Tri-Cities Strategic Alliance bringing together Visit Tri-Cities, TRIDEC, Tri-City Regional Chamber of Commerce, and Benton-Franklin Council of Governments to advance the region through collaborative initiatives that support the individual mission of each organization VISIT TRI-CITIES COUNCILS Tri-Cities Rivershore Enhancement Council Tri-Cities Sports Council Tri-Cities Wine Tourism Council Tri-Cities National Park Committee A subcommittee of the Tri-Cities Rivershore Enhancement Council (TREC), a program of Visit Tri-Cities, is collaborating with community members and various jurisdictions, including the Cities of Kennewick and Pasco, Ports of Kennewick and Pasco, Benton PUD, and Franklin PUD, to update the Cable Bridge lighting. An interlocal agreement has been drafted, serving as the initial step to initiate fundraising and discuss project funding. The updated lighting will feature a modern control system, allowing remote management, and will showcase the Tri-Cities community by illuminating the Cable Bridge with different color patterns. RIVER SHORE ENHANCEMENT PROJECTS Tri-Cities Rivershore Enhancement Council (TREC) Initatives •Hosted USACE Walla Walla District Commander for meeting and field tour with partnering jusidictions •Cable Bridge Lighting Subcommittee – finalized Interlocal Agreement for council/commissions review Tri-Cities National Park Committee Initiatives •Attended and presented at the Energy Community Alliance (ECA) MAPR Peer Exchange in Los Alamos, NM with site community leaders and representatives from the National Park Service (NPS) and Department of Energy (DOE) •Coordination of the Administrative Subcommittee •Developing a virtual strategy for B Reactor Tour shutdown (virtual tours) •Working with NPS, DOE, and ECA to establish a Friends of the Park Group that can support donations •Created Hanford/Tri-Cities community presentation for the ECA Peer Exchange HIGHLIGHTS Congratulations to the Tri-Cities Airport team who received the prestigious Kris Watkins Tourism Champion Award this year. The forward-looking leadership at the Airport continues to make it a significant contributor to our visitor economy through renovations, collaborations, and promotion of local arts and sports. Thanks to Washington River Protection Solutions for sponsoring this award. 2023 TOURISM CHAMPION AWARD Another huge shout out goes to Oatis Outdoor Adventure Rentals, recipient of the Annual Excellence in Service Award sponsored by Battelle. Oatis provides easy to access recreational opportunities in the area, and they do it with the genuine blend of helpful enthusiasm. Oatis is a perfect representation of the excellence in service visitors hope for in a destination. 2023 EXCELLENCE IN SERVICE AWARD Visit Tri-Cities, in partnership with the Tri-Cities National Park Committee and community partners, proudly celebrates the esteemed recognition of being designated as a National Park Service (NPS) American World War II Heritage City. This prestigious designation acknowledges the region’s significant historical contributions during this pivotal era. AMERICAN WWII HERITAGE CITY DESIGNATION HIGHLIGHTS 7 8 Pa g e 1 5 0 o f 2 5 8 VISIT TRI-CITIES GOVERNANCE INNOVATIVE & MEANINGFUL OPERATIONS Strategic Vision and Leadership •Strategic assessment to evaluate and enhance the organization’s focus and approach •Directed efforts on core strategies that boost visitation, enhance visitor experiences, and positively impact the Tri-Cities’ economy •Established a clear foundation for our messaging strategy that provides focus and consistency for long-term success •Prioritized and maintained existing programs, campaigns, and goals while working through significant staffing changes •Streamlined leadership and organizational structure •Refined contracts with service providers •Fully staffed and energized the VTC team Financial Strength •Maintained robust fiscal stability with significant reserve balances and year-end revenues expected to exceed budget by over $161,000 •Continued and built upon healthy relationships with key financial partners including City Councils, TPA Commissioners, and hotel partners Innovative Tools & Platforms •V TC Dashboard Creation: •Implementation of a comprehensive dashboard for efficient performance tracking •BrandFolder Integration: •Streamlining asset management and distribution for marketers and creatives •Sprout Social Utilization: •Harnessing the power of an all-in-one social media management platform for holistic marketing strategy enhancement •Meltwater Insights: •Leveraging Meltwater’s suite of solutions to uncover valuable insights and drive desired results •Asana Work Management: •Implementation of a web and mobile platform to help the team organize, track, and manage their work effectively Staff Honors •Destinations International: 30 Under 30 Award •Six Destination International PDM Certifications •Destinations International: Acceptance into to Certified Destination Marketing Executives (CDME) Program •Washington Society of Association Excellence: Associate of the Year •Chair:Corey Pearson, Three Rivers Campus •Past Chair:Rob Roxburgh, CPCCo •First Vice Chair:Buck Taft, Tri-Cities Airport/Port of Pasco •Vice Chair:Vijay Patel, A-1 Hospitality •Vice Chair:Staci West, Bechtel •Vice Chair:Amy Johnson, Purple Star Winery •Treasurer:Ron Hue •Legal Counsel:John Raschko, Miller Mertens & Comfort, P.L.L.C. •CPA:Monte Nail, CPA 2023 EXECUTIVE COMMITTEE VISIT TRI-CITIES STAFF •Kevin Lewis, President & CEO •Hector Cruz, Vice President of Development & Community Engagement •Gretchen Guerrero, Vice President of Finance & Operations •Julie Woodward, Vice President of Marketing & Creative Services •Austin Wingle, Marketing Manager, Advertising, Design & Creative Analysis •Corbin Harder, Marketing Manager, Website & Multi-Media •Lillian Martin, Media Relations Manager •Kirsten Finn, Convention Development Manager Team Lead •Natalie Clifton, Sports Development Manager •Michele York, Business Development Manager •Kaiya Bliss, Convention Development Manager •Reagan Thompson, Convention Development Manager •Linda Tedone, Sales Administrative Assistant •Samantha Galbraith, Operations Manager/Executive Assistant •Abby Hedges, Visitor Services Specialist •Councilmember Loren Anderson, City of Kennewick •Deborah Barnard, Barnard Griffin Winery •Jerry Beach, A-1 Hospitality •Troy Berglund, West Richland Chamber of Commerce •Mark Blotz, Clover Island Inn •Washington State Senator Matt Boehnke •Phinney Brown, Arts Center Task Force •Washington State Representative April Connors •Jennifer Cunnington, Q Home Loans •Karl Dye, TRIDEC •Councilmember David Fetto, City of West Richland •Robert Franklin, B-Reactor Museum Association •Colleen French, Department of Energy •Brisa Guajardo, Tri-Cities Hispanic Chamber of Commerce •Mike Hall, Ice Harbor Brewing Company •Monica Hammerberg, Hampton Inn + Suites Pasco •Colin Hastings, Pasco Chamber of Commerce •Sandra Haynes, WSU Tri-Cities •Trish Herron, Battelle •Commissioner Ken Hohenberg, Port of Kennewick •Diahann Howard, Port of Benton •Brian Lubanski, Ben Franklin Transit •Lori Mattson, Tri-City Regional Chamber of Commerce •David McClain, TC Black •Commissioner Will McKay, Benton County •Brent Miles, Tri-City Dust Devils •Commissioner Rocky Mullen, Franklin County •Dara Quinn, Emerald of Siam •Cliff Reynolds, Courtyard by Marriott Columbia Point •Mayor Pro Tem Theresa Richardson, City of Richland •Councilmember Zahra Roach, City of Pasco •Gus Sako, The Octopus’ Garden •Rosana Sharpe, The REACH Interpretive Center •Lacey Stephens, Home2Suites •Vivian Terrell, Honey Baked Hams Co. •Matt Watkins, Pasco Public Facilities District •Rebekah Woods, Columbia Basin College 2023 BOARD OF DIRECTORS OVERVIEW •Founded:1969 as non-profit organization •Staff:15 full-time employees •Structure:Governed by a 42 member Board of Directors •Members:412 •Website:VisitTri-Cities.com HIGHLIGHTS 9 10 Pa g e 1 5 1 o f 2 5 8 OUR MEMBERSHIPOUR MEMBERSHIP Visit Tri-Cities’ ability to attract visitors to our region is made possible by the investment and support of our member organizations. Visit Tri-Cities members and partners provide unique and inclusive opportunities that are of interest to travelers and help build a better quality of life for residents. Their dedicated, unwavering support is the foundation of our work. In turn, it is our duty, obligation, and pleasure to continue the promotion and celebration of our members and our dynamic community through tourism marketing, high quality publications, destination advertising, educational forums, creative digital content, and destination development. In 2023, Visit Tri-Cities’ membership total reached 412 tourism businesses. PLATINUM Ben Franklin Transit Benton County Benton PUD City of West Richland Energy Northwest Franklin County Franklin PUD Port of Benton Port of Kennewick Port of Pasco The HAPO Center GOLD Best Western Premier Pasco Inn & Suites Clover Island Inn Comfort Suites Kennewick at Southridge Courtyard by Marriott Richland Columbia Point Hilton Garden Inn Kennewick Holiday Inn Express & Suites Pasco Tri-Cities Holiday Inn Richland on the River Red Lion Hotel & Conference Center Pasco Red Lion Hotel Kennewick Columbia Center Richland Riverfront Collection by Ascend SpringHill Suites by Marriott Kennewick SILVER Baymont Inn & Suites Best Western Kennewick Tri-Cities Center Hotel Best Western Plus Kennewick Inn Comfort Inn Courtyard by Marriott Pasco Tri-Cities Airport Fairfield Inn Hampton Inn & Suites Pasco/Tri-Cities Hampton Inn Kennewick at Southridge Hampton Inn Richland Holiday Inn Express Hotel & Suites Richland Home2Suites by Hilton Homewood Suites by Hilton - Richland Kennewick Inn & Suites La Quinta Inn & Suites My Place Hotel-Pasco/Tri Cities, WA Red Lion Inn & Suites Kennewick Tri-Cities Sleep Inn Pasco Tri-Cities Super 8 Kennewick The Lodge at Columbia Point TownePlace Suites by Marriott Woodspring Suites Standard Membership 14 Hands Winery 3 Eyed Fish Kitchen + Wine Bar 3 Rivers Folklife Society 4 Whistles Winery A & A Motorcoach Above The Curve Vineyard Academy of Children’s Theatre Ace Jewelry & Loan Adventures Underground Airfield Estates AJ’s Edible Arts, Inc. Alaska Airlines Alexandria Nicole Cellars Alexandria Nicole Cellars Destiny Ridge Tasting Room Allied Arts Association - Gallery at the Park Anelare Winery Angel Brook Christmas Tree Jubilee Angel Brook Farm Market and Produce Stands - Kennewick Angel Brook Farm Market and Produce Stands - Richland Angel Brook Ice Cream Anthology Event Venue by Castle Event Catering Anthony’s at Columbia Point Arlene’s Flowers & Gifts Art on the Columbia Art Work Northwest Art YOUR Way Arts Center Task Force Aspen Limo Tours At Michele’s Atomic Ale Brewpub & Eatery Atomic Bowl & Jokers Lounge & Casino Atomic Escape Rooms Aub’s Bananza Bread Avennia Red Mountain Tasting Room AXE KPR Axe Throwing Azteca B Reactor Museum Association (BRMA) Badger Mountain Vineyard/Powers Winery Barnard Griffin Winery Bartholomew Winery Baum’s Bella Italia Restaurant Bennett Rentals Benton County Fairgrounds Bergan’s Timeless Treasures Bergstrom Aircraft, Inc. Bingo Boulevard Black Heron Spirits, LLC Blankslate Blossom Cups & Cakes, LLC Bob’s Burgers and Brew - Kennewick Bob’s Burgers and Brew - Richland Boiada Brazilian Grill Bombing Range Brewing Company Bon Cafe Co Bougie Brunch Brady’s Brats Brewminatti Brick House Pizza Bristle Art Gallery Brother’s Cheese Steaks Budd’s Broiler by Anthony’s Restaurants Buds and Blossoms too Burger Ranch Burger Ranch - Pasco Canyon Lakes Golf Course Catering to You CBC Arts Center Cedars at Pier 1 CG Public House & Catering Chandler Reach Vineyards Chapala Express Cherry Chalet Bed & Breakfast ECONOMIC DEVELOPMENT PARTNERS City of Kennewick City of Pasco City of Richland Tri-City Regional Hotel Motel Commission DIAMOND Battelle Bechtel National Central Plateau Cleanup Company Hanford Mission Integration Solutions Toyota Center Three Rivers Convention Center Washington River Protection Solutions Garden Hot Pot Gesa Carousel of Dreams Glass Studio at Barnard Griffin Winery Goose Ridge Estate Vineyard & Winery Gordon Estate Winery GRAZE - ‘a place to eat’ Great Harvest Bread Company Kennewick Greenies Griggs Ace Hardware Ground Support Coffee Guadalajara Style Mexican Food LLC Hamilton Cellars Havana Café Hedges Family Estate Hightower Cellars HoneyBaked Ham Café HOOKED SEAFOOD BOIL & BAR Hope Outfitters Hops n Drops Hops n Drops - Kennewick Horn Rapids Golf Course Horn Rapids RV Resort & Mini Mart Hot Tamales, LLC How Sweet It Is Ice Harbor Brewing Co. Ice Harbor Brewing Company at the Marina Iconic Brewing IHOP Restaurants Indaba Coffee InterMountain Alpine Club iplay Experience It’s All in the Details J&S Dreamland Express J. Bookwalter Just Juice LLC KayakBateman.com Kickstand Tours Kindred Spirits Kiona Vineyards and Winery Kitzke Cellars La Bella Vita Kitchen and Bar Lakeside Gem and Mineral Club Layered Cake Artistry Lemon Grass LIGO Hanford Observatory Longship Cellars Love Curry Indian Cuisine Lower Columbia Basin Audubon Society LU LU Craft Bar + Kitchen Lucky Flowers Magills Restaurant & Catering Market Vineyards Martinez & Martinez Winery Masala Indian Cuisine Master Gardener Foundation of Benton-Franklin County McDonald’s Restaurants Mercer Wine Estates Mid-Columbia Ballet Mid-Columbia Libraries Mid-Columbia Mastersingers Mid-Columbia Musical Theatre Mid-Columbia Symphony Middleton Farms Milbrandt Vineyards/Ryan Patrick Wines MillerTime Fishing Miss Tamale Mocha Express on Canal Mocha Express TriCities Modern Medical Spa Monarcha Winery Moniker Bar Monterosso’s Italian Restaurant Moonshot Brewing Moonshot Brewing Pub at the Park Muret-Gaston Winery National Charter Bus Richland Nothing Bundt Cake Nouveau Day Spa OATIS Outdoor Adventure Rentals Octopus’ Garden OH SUSHI Opportunity Kitchen - Federal Building Opportunity Kitchen - Public Market at CRW Pacific Shorz Powersports Pasco Aviation Museum Pasco Golfland Pasco Specialty Kitchen Peacock Coffee Roasting Co Pedego Electric Bikes Tri-Cities Perfect Circle Brewing Philocaly Lingerie Boutique Picante Mexican Taqueria Polka Dot Pottery Popcorn Northwest Porter’s Real BBQ Kennewick Porter’s Real BBQ Pasco Porter’s Real BBQ Richland Poutine, Eh? Power Up Arcade Bar Preszler’s Guide Service, LLC Price 4 Limo Proof Gastropub Public Market at Columbia River Warehouse (CRW) Purple Star Wines Ranch & Home Rattlesnake Mountain Harley - Davidson REACH Museum Reborn Bike Shop Red Dot Paintball Red Lobster Red Mountain AVA Alliance Red Mountain Event Center Red Mountain Trails Red Mountain Trails Winery Restaurante El Chapala Rewster’s Craft Bar & Grill - Horn Rapids Golf Course Richland Players RideNow Powersports Tri-Cities Roads2 Travel Company Rocco’s Pizza Kennewick Rocco’s Pizza Pasco Rock Shop Rollarena Skating Center Rolling Hills Chorus ROMA House Roscoe’s Coffee Round Table Pizza - Kennewick Chic & Unique Furniture Kennewick Chic & Unique Furniture Richland Chuck E. Cheese Chukar Cherries Cigar Savvy Shop, LLC Clover Island Marina Col Solare Winery Columbia Basin BMX Columbia Basin College Columbia Basin Racquet Club Columbia Center Columbia Crest Winery Columbia Park Golf Tri-Plex Columbia Point Golf Course Columbia Sun RV Resort Community Concerts of the Tri-Cities Convergence Zone Cellars Copper Top Tap House Cora’s E-bike Shop Cougar Cave Expresso Country Mercantile Country Mercantile - Pasco Coyote Bob’s Roadhouse Casino Coyote Canyon Mammoth Site Coyote Canyon Winery Crazy Moose Casino Cupcakes Bakery & Deli D’s Wicked Cider D-Bat Columbia Basin Del Sol Lavender Farm DermaCare Desert Food Mart (Conoco) Desert Wind Winery Divots Golf Dog Haus Biergarten - Pasco Don Rubio’s Dovetail Joint Restaurant DownUnderSportFishing DrewBoy Creative Earth Spirit Shop East Benton County Historical Society & Museum Eastern Washington Transportation Elk Haven Winery Emerald of Siam Thai Restaurant & Lounge Encanto Arts Europa Italian & Spanish Cuisine Events at Sunset Experience 46 Degrees Farmhand Winery Fast and Curryous Fat Olives Restaurant & Catering Fidélitas Wines Five Guys Burgers & Fries Float Euphoria Foodies Kennewick Foodies on the Go Foodies Richland Franklin County Historical Society & Museum Franklin County RV Park Fresh Leaf Co FreshPicks WA Smoothies Frichette Winery Friends of Sacajawea State Park Frost Me Sweet Bakery & Bistro Fujiyama Japanese Steak House & Bar11 12 Pa g e 1 5 2 o f 2 5 8 OUR SPONSORSOUR MEMBERSHIP Round Table Pizza - Leslie Round Table Pizza - Pasco Round Table Pizza - Richland Runners of the Sage Sacajawea State Park Sage Brewing Company Sageland Center Salud Bar and Kitchen Sandollar Farms & Alpacas Sandy’s Fabrics & Machines Seoul Fusion Korean Restaurant Shade Cafe Sheep’s Clothing Shelby’s Floral & Gifts Simplified Celebrations Skippers Seafood n’ Chowder Sleeping Dog Wines Soi 705 Solar Spirits Distillery Somer Mediterranean Food and Bakery LLC Southern Cross Winery Spare Time Lanes Spencer Carlson Furniture & Design Sporthaus Summer’s Hub of Kennewick Sun Willows Golf Course Sundance Aviation Sunken Treasures Games SunWest Sportswear SuperMex El Pueblo Market Swadee Thai Cuisine Swampy’s BBQ Sauce & Catering Swigg Coffee Bar Tagaris Winery Take a Break Tri-Cities Tapteal Greenway TC Black TC Cider House Terra Blanca Winery & Estate Vineyard The Bradley The Bubbly Boba The Crazy Crab Place The Educated Cigar, LLC The Endive Eatery The Garden TriCities The Grain Bin Flower Farm & Inn The Human Bean The Medusa Tap House The Moore Mansion The Olive Garden The Pub The Rude Mechanicals The Spa Traveler The Teal Box The Tinte Red Mountain Retreat Thurston Wolfe Winery Tip Pit BBQ Transient Coffee Company Trejo’s Mexican Restaurant Trejo’s Taco Factory Tri-Cities Newcomers Club Tri-Cities Tackle Tri-Cities Wine Society Tri-City Americans Hockey Tri-City Dust Devils Tri-City Tappers Tucannon Cellars Tulipe Lifestyle Shop Tumbleweeds Food Truck Tumbleweeds Mexican Flair Twigs Bistro & Martini Bar Twist Clothing Co. Uncle Sam’s Saloon Upchurch Vineyard Uptown Antique Market Urban Grounds LLC US Army Corp of Engineers VISTA Event Space Washington State University Tri-Cities Water2Wine Cruises Wautoma Springs West Richland Golf Course Wet Palette Uncork + Create Studio Wheelhouse Community Bike Shop White Bluffs Brewing White Bluffs Quilt Museum Wine Social Wingstop Pasco Wisdom Books LLC WIT Cellars Wright’s Desert Gold Motel & RV Park Xenophile Books X-Golf Kennewick Z Place Salon & Spa Zintel Creek Golf Club Zintel Creek Golf Club Restaurant and Lounge Zullee Mediterranean Grill Richland The Media Outreach Sponsorship is paramount to the success of Visit Tri-Cities’ mission of driving visitor spending. The funds secured through the media relations sponsorship allows our organization to work in unison with outside public relations firms to bring in travel writers, national news organizations, and provides the national media attention our great community deserves. Additionally, the sponsorship complements other marketing endeavors such as social media, digital, OTT, television, and print ads. In doing so, we bring value to our partners and community members while creating a positive image of our community for local employers recruiting efforts and employee retention. HANFORD MISSION INTEGRATION SOLUTIONS The Tri-Cities Rivershore Enhancement Council (TREC) is a multi-jurisdictional program, coordinated by Visit Tri-Cities, which is helping the community rediscover its river shores and is working to emphasize restoration, development, and enhancement activities. The investment made by Bechtel ensures that the work being done by TREC’s committees, the Strategic Committee and the Technical Committee, will continue. Contributions made, have a direct impact on the Rivershore Enhancement Council through the creation of the Rivershore Master Plan. These efforts continue to improve river shore experiences for all to enjoy. BECHTEL Washington River Protection Solutions is the Annual Meeting and Kris Watkins Tourism Champion Award Sponsor. This sponsorship supports the communication of the Visit Tri-Cities mission with its VTC membership, VTC Board of Directors, and stakeholders; including presentations to city council members and elected officials. WASHINGTON RIVER PROTECTION SOLUTIONS Battelle is our Excellence in Service Award/Eco-Tourism Sponsor. This partnership is a vehicle for encouraging visitation and enjoyment of our outdoor recreational opportunities. Battelle also extends its support to the Excellence in Service Award, chairing the committee and overseeing the evaluation process. Battelle has made additional spotlights possible through the “Tri-Cities Business Spotlight” campaign. The Excellence in Service Award is presented by Battelle at the Visit Tri-Cities Annual Meeting. BATTELLE The Quality-of-Life Sponsorship drives the success of the Visit Tri-Cities mission in developing programs, products, and activities that impact “the overall economic vitality of our communities and the quality of life for our citizens.” This sponsorship provides an avenue to place in-market advertising, promoting the quality of life to local residents, those considering relocation, and visitors staying in the area. The funds secured through the Quality-of-Life Sponsorship allows our organization to market effectively in-region, highlight local tourism businesses, encourage the community to engage with local events and businesses, and inspire our local community members to bring their friends and family to the Tri-Cities; in turn positively impacting our local economy. CENTRAL PLATEAU CLEANUP COMPANY The Three Rivers Campus is the Convention and Meeting Program Sponsor. A pivotal hub for economic development in our community. The convention facilities are more than just event spaces, they are the engines that drive economic development. The sponsorship of the Three Rivers Campus directly contributes to the community’s ability to host diverse and impactful events, creating a positive ripple effect throughout the community. The Three Rivers Campus creates opportunities for locals to engage, learn, and network. It is an investment in the economic and social fabric of our community. THREE RIVERS CONVENTION CENTER, TOYOTA CENTER & TOYOTA ARENA 13 14 Pa g e 1 5 3 o f 2 5 8 7130 W. Grandridge Blvd., Ste. B Kennewick, WA 99336 509.735.8486 I 800.254.5824 VisitTri-Cities.com NEWLY SECURED SIGNATURE EVENTS FOR 2024 Visit Tri-Cities inked the deal to host the IRONMAN 70.3 Washington Tri-Cities race for the upcoming three years. This exciting event will be staged at Columbia Point in Richland, bringing together 2,500 athletes, 7,500 visitors, 2,000 volunteers, and numerous agencies. The collaboration aims to produce one of world’s most recognized and embraced endurance events. Visit Tri-Cities won the bid to host the World Horseshoe Pitching Championships in both 2024 and 2027. Each world championship event will bring nearly 2,500 people to the area over a two-week period as pitchers compete for the world title. Each world championship event will generate nearly $1 million in economic impact to the area as well as 1,000 participants will come to the Tri-Cities to compete for the world title. Another successful bid Visit Tri-Cities landed is the 2024 Washington Society of Association Excellence (WSAE) Annual Conference. WSAE is a representative body for over 225 association executives, staff specialists, and industry partners. By hosting the 2024 Annual Conference in the Tri-Cities, Visit Tri-Cities has a valuable opportunity to present the region as a top-tier destination to influential members of the association and event planning community. These individuals are often well-connected, long-standing acquaintances who strive to provide their members with the finest education and experiences that Washington has to offer, and the Tri-Cities perfectly aligns with their objectives. For more information and updates on the IRONMAN 70.3 and the NHPA World Horseshoe Pitching Championships in Tri-Cities, please check out VisitTri-Cities.com Page 154 of 258 Visit Tri-Cities 2024 Lodging Tax Annual Budget REVENUE 3050 City of Kennewick 284,375 3055 City of Pasco 182,412 3060 City of Richland 313,500 CITY TOTALS 780,287$ EXPENSES 5010 Salaries 295,000$ 5012 401K 14,750$ 5015 Health Insurance 37,896$ 5030 Payroll Taxes 30,000$ 5035 Accounting 21,363$ 5050 Telephone 6,600$ 5060 Office Expenses 10,000$ 5070 Office Insurance 4,000$ 5080 Postage 1,700$ 5090 Equipment Upkeep 8,800$ 5092 Vehicle Expense 1,700$ 5095 Capital Exp.8,000$ 5105 Legal/Professional 2,000$ 5110 Dues & Subscriptions 31,424$ 5112 Platform Fees 8,000$ 5115 Comp./Software Lic. Fee 6,000$ 5185 Visitor Center 2,000$ 5200 Tourism Development 44,000$ 5230 Staff Development/Training 4,000$ 5290 Advertising 237,054$ 5315 Travel / Expenses 6,000$ TOTAL EXPENSES 780,287$ Page 155 of 258 BUSINESS INFORMATION Business Name: TRI-CITIES VISITOR AND CONVENTION BUREAU UBI Number: 601 847 418 Business Type: WA NONPROFIT CORPORATION Business Status: ACTIVE Principal Office Street Address: 7130 W GRANDRIDGE BLVD, SUITE B, KENNEWICK, WA, 99336-7725, UNITED STATES Principal Office Mailing Address: 7130 W GRANDRIDGE BLVD, SUITE B, KENNEWICK, WA, 99336-7725, UNITED STATES Expiration Date: 02/28/2025 Jurisdiction: UNITED STATES, WASHINGTON Formation/ Registration Date: 02/14/1962 Period of Duration: PERPETUAL Inactive Date: Nature of Business: TO ATTRACT VISITORS AND CONVENTIONS TO THE TRI-CITIES AREA Charitable Corporation: Nonprofit EIN: 91-0859630 Most Recent Gross Revenue is less than $500,000: Has Members: Public Benefit Designation: Host Home: REGISTERED AGENT INFORMATION Registered Agent Name: MONTE NAIL Street Address: 1880 FOWLER ST, RICHLAND, WA, 99352-4810, UNITED STATES Mailing Address: 1880 FOWLER ST, RICHLAND, WA, 99352-4810, UNITED STATES 8/27/24, 2:46 PM Corporations and Charities System https://ccfs.sos.wa.gov/?_gl=1*1brmvig*_ga*MTk2Mjc2Nzg1Ny4xNzE3NDMxNjk5*_ga_7B08VE04WV*MTcyNDc5NDg4NC4xLjEuMTcyNDc5NTE2Mi4…1/2Page 156 of 258 GOVERNORS Title Governors Type Entity Name First Name Last Name GOVERNOR INDIVIDUAL RON HUE GOVERNOR INDIVIDUAL JENNIFER CUNNINGTON 8/27/24, 2:46 PM Corporations and Charities System https://ccfs.sos.wa.gov/?_gl=1*1brmvig*_ga*MTk2Mjc2Nzg1Ny4xNzE3NDMxNjk5*_ga_7B08VE04WV*MTcyNDc5NDg4NC4xLjEuMTcyNDc5NTE2Mi4…2/2Page 157 of 258 HIGH) ,1 7 i:, 4 Phone:Email Address:509-460—3966 ch riswagar@timemagicstudios.com Federal Tax ID Number:92-2990528 Organization/Agency Name:Time Magic Studios,LL Application for 2025 Pasco Lodging Tax Funds 20,000AmountofLodgingTaxRequested:$ Type:Non—Profit For-Profit Public A enc 'I f d '':me o PrOpose use/Acmty Creation of Video and Photography Marketing Sequence for SCOpeof Work Time Magic Studios will produce a video marketing series and capture evergreen (Will be photography covering all major events in the City of Pasco,along with key tournaments included in at the soccer and softball facilities. Contract): Our aim is to create Inna-lastinn assets that will enhance tourism for these events for Funding Outline: Mailing Address:State:4928 8.Benton Place City:Kennewick WA Zip:99337 Requested Pasco Lodging Tax Funds:20,000 TOTAL BUDGET:520,000 TOTAL $20,000 Please attached the following (if applicable)to your application: 0 If your agency is a non—profita copy of your agency’s current non-profit corporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) Non-Pasco Lod in Tax Sources:USES0f Pasco LOd in Tax:Amount: Tourism Marketing 20,000 Event/FestivalMarketing/Operation Tourism Facility Operation Amount: “ma“Name and WE Christopher Wagar,Co-Founder Page 158 of 258 SqTheStateofWashinonreuiresanestimateforthefollowin.,uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs ?lled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a de?ned random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Surve :Information collected directly from individual visitors or participants in a non—random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to As adirect result of your proposed tourism-related serwce,provrde an determine attendance in previous estimate of:years? a.Overall Attendance 15%to 25%Direct Count Enter the total number of people predicted to P d,t d increasefrom " Indirect Count ...re IC e 2 ' attend this actrvrty and select the method used to Straggigera Eig?zrgztrc’:survey -vdeterminetheattendance.levels Ill Structured Estimate b.Attendance,50+Miles 15%to 25%Direct Count Number of people predicted to travel more than Predicted-3:323:2333"Indirect Count 50 miles to attend this activity and select the attendance levels Representative SUFVéY .of people traveling Informal Surveymethodusedtodeterminetheattendance.from 50+miles I Structured Estimate c.Attendance,Out of State,Out of Country 3%increasefrom Direct Count Of the total listed in "b"above,number of people 23:13:69levels Indirect Count predicted to travel from another state and country Pred'de":of people traveling Representative Survey and select the method used to determine the g?tgiz?i?isndInformal Survey attendance.'Structured Estimate d.Attendance,Paid for Overnight Lodging 10%increase in Direct Count Enter the number of predicted to attend this activity ..attendance paid '"d'mt CWT" d f .ht |d .d |h th d PFEd'Cted-for overnight Representative Survey an pay or ovelrnig o ging an se ect t e me o lodging Informal Survey used to determine the attendance..Structured Estimate e.Attendance,Did Not Pay for Overnight Lodging 90%increase IBIS?“i‘é‘mtt-...attendance n Irec oun Enterthe numberofpredictedtoattendthis actIVIty Predicted:levels that do'not Representative Survey Without paying for overnight lodging and select the pay forovernight Informa|5uwey method used to determine the attendance.IOdQ'ng‘ I Structured Estimate f.Paid Lodging Nights ., Dire“Count Predicted.Indirect CountEnterthenumberofpredictedpaidlodgingnightsand select the method used to determine the attendance. Lodging night =one or more persons in one room I Dependen Representative Survey Informal Survey Structured Estimate lam an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. Signature::36,5:3 a/NamelPrintEdII Christopher R.Wagar Date=8/30/24 Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Page 159 of 258 u l,Email:mc uadeL@ asco-wa.ov PROPOSED TIMELINE FOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975-9683 Application Deadline:Friday,August 30th by 5:00 pm. Page 160 of 258 City of Pasco Lodging Tax Fund Overview Pasco’s Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: o The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant's financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; .The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism—related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism—related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 —De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. -"Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or otherwise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and'funding marketing of special events and festivals designed to attract tourists. o "Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 161 of 258 We create powerful visual assets that will help you grow your organization. Commercial Photography | Video Production | Copywriting OMWBE Certified Firm: M5F0029180 Lodging Tax Application This application was submitted on August 30, 2024. Client Name: City of Pasco Project: Major Event and Sporting Tournaments | Tourism Marketing Series Page 162 of 258 2 | Page Contents Project Overview ........................................................................................................................................ 3 Package Details .......................................................................................................................................... 4 Our Portfolio .............................................................................................................................................. 5 Vendor Information .................................................................................................................................. 7 Team: Founders Biographies .................................................................................................................... 8 Page 163 of 258 3 | Page Project Overview We are excited to submit this Lodging Tax Application to create a major event video marketing and photography series for the City of Pasco. We are the in the process of completing a video marketing series on Downtown Pasco. Now, we want to widen out the scope to include all major events with an additional focus on major sporting tournaments that use Pasco facilities. The goals include: • Developing a versatile collection of stock photography and video footage that Pasco can use across various marketing initiatives and campaigns. • Creating compelling video reels that highlight the vibrant events happening throughout the City. • Showcasing Pasco's ability to host major events through a powerful brand video, serving as the cornerstone of your marketing strategy to boost tourism revenue in the city. In this proposal, we describe the following: • Package Details: A customized package of creative assets designed to achieve the goals mentioned above • Portfolio: An overview of our studio’s work, offering insight into the talent and creativity of our team. • Founder Biographies: Background information on our founders, highlighting their key experience and expertise. Who we are Time Magic Studios is a Women and Latine-owned firm based in the Tri-Cities. We serve government and non-profit organizations around the Pacific Northwest. We specialize in creating story-driven visual assets that make a lasting impact. Page 164 of 258 4 | Page Package Details EventCine Plus The event tourism package is designed to excite your audience and drive visitors to major Pasco events for years to come. The features of this package include: • 1, 120-to-150 second Pasco events brand video that showcases the major events in an engaging and dynamic way using event participant testimonials. • 6, short-form videos, each 45 to 60 seconds long, recapping the highlights of each major event in its own standalone video. • 50 stock video clips (each at least 5 seconds long) that can be used as b-roll for social media reels, website videos, and television ads. • 300 professionally composed and edited photographs. • Lifetime license for all stock video clips and photos, allowing unlimited modifications and usage without additional cinematographer or photographer fees. The events to be covered in this package include: • Fiery Foods Festival • All Senior and CommUNITY Picnic • Lampson Cable Bridge Run (captured December 2025 - deliverables provided in January 2026) • Grand Old 4th of July Celebration • Cinco de Mayo • Pasco Farmers Market • Major Sports Tournaments using City of Pasco facilities (up to 3 major tournaments) • Smaller events as requested by the City (up to 5 smaller events) *Note: We would be happy to adapt the events to be covered to capture exactly what the city wants. Total cost: Invest in this package for $20,000 and let us help you increase excitement and attendance of major Pasco events for years to come. Page 165 of 258 5 | Page Our Portfolio The selected pieces from our portfolio illustrate our competencies in event media production and non-profit & government visual brand stories. First Piece Client Name: Central Washington Hispanic Chamber of Commerce (CWHCC) Project: Yakima Taco Fest In-Brief: Yakima Taco Fest is the premier event for the CWHCC. With thousands of visitors each year, the CWHCC requested an integrated video and photography marketing campaign for the 2024 event. The assets included: • One event recap video • One core event testimonial video • Three individual vendor story testimonial videos • One short-form reel • Vibrant photography The final asset is currently in post-production and will be an evergreen branding video for the Chamber. Click here: Link to Yakima Taco Fest project assets Second Piece Client Name: Yakima Valley Community Foundation, the Field Group and the Washington State Department of Health. Project: Fiesta de Salud In-Brief: Fiesta de Salud was a free health fair for the Spanish-speaking community in the Yakima Valley. It was organized by the Yakima Valley Community Foundation and 15 local organizations, and it was funded by the Washington State Department of Health. Instead of using stock pictures for future activities, the coalition wanted authentic imagery of their community. The end product was a content library of photos and videos with full license rights so that the coalition partners could continue to promote important health initiatives in a cost-effective manner. This portfolio included our award-winning American Advertising Federation film: Washington State Farm Workers. Click here: Link to Fiesta de Salud project assets Page 166 of 258 6 | Page Third Piece Client Name: City of Pasco Project: Integrated Tourism Marketing Series using Lodging Tax Funding In-Brief: The goals of this project are to create • a transformative brand video for Downtown Pasco • a versatile collection of stock photography and video footage that the city could leverage for diverse marketing campaigns • a fun set of short-form videos that could narrate the authentic story of Pasco The first asset we produced was on the Cinco de Mayo event. The rest of the series is in production. Click here: City of Pasco project assets Fourth Piece Client Name: Leadership Tri-Cities Project: Non-Profit Brand refresh In-Brief: Leadership Tri-Cities (LTC) is the top leadership development program in the Tri-Cities, with over 600+ alumni driving positive change in the community. We created a brand and event video series, along with a full content-library of stock videography and photography to help tell the story of this legacy non-profit. Click here: Leadership Tri-Cities project assets Fifth Piece Client Name: Home Builders Association – Tri-Cities Project: Parade of Homes – Event Tourism Integrated Marketing Campaign In-Brief: The Home Builders Association of the Tri-Cities, a grassroots lobbyist organization that helps residential construction companies develop reliable and affordable homes, wanted to create an ad and marketing campaign that would increase ticket sales for their Parade of Homes event and drive brand awareness. Click here: Home Builders Association – Tri-Cities project assets Page 167 of 258 7 | Page Vendor Information Company Information • Company Name: Time Magic Studios LLC • Company Address: 4928 S. Benton Place, Kennewick, WA 99337 • Company Phone: 509-460-3966 • OMWBE Certification Number: M5F0029180 • Registered Vendor Number: SWV0300625 Key Personnel Experience • Esteban Barrientes | Chief Creative Director | 6 years of experience • Yaritza Barrientes | Senior Lead Photographer | 6 years • Chris Wagar | Senior Producer | 12 years • Ob Cruz Team | Senior Lead Photographer and Assistant Photographer | Sub-Contractor | 15 years • Terrence Anderson | Assistant Photographer | 3 years Approach Our approach is to create visual assets that show our subjects in an authentic and inclusive way. We incorporate dynamic images to evoke the message our clients wish to convey. Page 168 of 258 8 | Page Team: Founders Biographies Esteban Barrientes Jr. Esteban Barrientes Jr. is a Co-Founder and Chief Creative Director of Time Magic Studios. He is an award-winning filmmaker, having recently won the AAF best-in-show award for his short film titled: Washington State Farmworkers. His love of photography and film started at an early age, and he has been perfecting his skill set in photography, cinematography, lighting, set design, and video editing for the last seven years. Filmmaking is also in his family. His uncle, Max Barsana, recently won an Oscar and Golden Globe award for his work with ShadowMachine on the Guilemoro del Toro-directed film Pinocchio. Esteban hopes to follow in his uncle’s footsteps in creating impactful stories for organizations in the Pacific Northwest. Esteban is of Indigenous, Filipino and Latino heritage – and his family is a part of the Tlingit tribe in Alaska. His background drives him to create videos that center historically marginalized and underserved people as the protagonist of their stories. Yaritza Marie Barrientes Yaritza Marie Barrientes is a Co-Founder, Head of Photography, and resident Social Media guru at Time Magic Studios. Yaritza first started in wedding and event photography in the Yakima Valley as an understudy for the top wedding photographer in the region – Ob Cruz. She focuses on connecting with her subjects, and capturing their emotion and authentic personality using flattering light and composition. Yaritza is of Mexican heritage, and speaks Spanish and English fluently. Page 169 of 258 9 | Page Christopher Wagar Chris Wagar is a Co-Founder, Senior Producer and Head Scriptwriter for Time Magic Studios. He is a natural storyteller, and loves using visual elements as a medium to craft compelling stories for a cause. He first saw the power of film's ability to deliver on organizational objectives and increase funding while serving as a United States Peace Corps volunteer in St. Lucia. During his service, he wrote and produced a documentary video that showcased the Caribbean Youth Empowerment Project – a project that helped underserved youth aged 17-25 gain the life skills and technical knowledge they needed to thrive in their career. This video was key in helping the program earn a grant of $500,000. Chris is also an Associate Professor at Columbia Basin College with expertise in Adult Education and Instructional Design. He has further competencies in market research, scriptwriting, copywriting, grant writing, and multi-media curriculum design. Finally, he strongly supports local non-profit organizations and the arts, serves on the board of Leadership Tri-Cities as the Director of Communications, and is a former board member for the Academy of Children's Theater. Orialys Curnaux Lemes Orialys Curnaux Lemes is a Co-Founder and Chief Financial Officer of Time Magic Studios. Orialys is passionate about telling the story of entrepreneurs and thought-leaders – she has a particular soft-spot for immigrant and female entrepreneurs, as she immigrated from Cuba 10 years ago with the dream of starting her own business in America. She has a Bachelors in Economics from the Universidad de Oriente in Cuba, and an Associates in Accounting from Columbia Basin College. Orialys is fluent in Spanish and English. Page 170 of 258 Pasco Application for 2025 Pasco Lodging Tax Funds Amount of Lodging Tax Requested: " 365000 Organization/Agency Name: Pasco Cha mber of Co m merce Type: [i Non-Profit€ For-Profit [1 Public Agency FederalTaxlDNumber: 91_0375775 Con'ac' Name and T"'e: Colin Hastings, Executive Director Phone: 509-547-9755 Ema" Address: admin@pascochamber.org Ma"'ng Address: 1110 0sprey Pointe Boulevard, Suite 101 a'y: Pasco Sfa[e:wq 'a" 99301 T"'e of Proposed Use/Ac""y: Advertising for events and festivals the chamber produces. A n Scope of WOrk Advertising for events and festivals the chamber produces. Also will cover visitor and (Will be relocation services. The events that create visitor traffic and over-night stays include included in the Mid-Columbia Ag Hall of Fame, CrawFest and RiverFest. Contract): Funding Outline: Non-Pasco Lodging Tax Sources:Amount: Uses of Pasco Lodging Tax:Amount: Private Industries and final 342,933 Tourism Marketing 25,266 Event/Festival Marketing/Operation j45,28 j Tourism Facility Operation 240,382 RequestedPascoLodgingTaxFunds: 36iOoo TOTAL BUDGET: S378,933 TOTAL S 410,929 If your agency is a non-profit a copy of your agency's current non-profit corporate registration with the Washington Secretary of State. Brochures or other information about your event/activity/facility, in particular items showing recent tourism promotion efforts. (Optional) Page 171 of 258 The State of Washington requires an estimate for the following questions below: Direct Count: Actual count of visitors using methods such as paid admissions or registrations, clicker counts at entry points, vehicle counts or number of chairs filled. A direct count may also include information collected directly from businesses, such as hotels, restaurants or tour guides, likely to be affected by an event. Indirect Count: Estimate based on information related to the number of visitors such as raffle tickets sold, redeemed discount certificates, brochures handed out, police requirements for crowd control or visual estimates. Representative Survey: Information collected directly from individual visitors/participants. A representative survey is a highly structured data collection tool, based on a defined random sample of participants, and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Survey: Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants. Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate: Estimate produced by computing known information related to the event or location. For example, one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). As a direct result of your proposed tourism-related service, provide an estimate of: What method was used to determine attendance in previous yea rs? a. Overall Attendance Enter the total number of people predicted to attend this activity and select the method used to determine the attendance. 6,910 Predicted : [ Direct Count z Indirect Count € Representative Survey € Informal Survey € Structured Estimate b. Attendance, 50+ Miles Number of people predicted to travel more than 50 miles to attend this activity and select the method used to determine the attendance. 1407 Predicted : € Direct Count € Indirect Count W Representative Survey € Informal Survey € Structured Estimate c. Attendance, Out of State, Out of Country Of the total listed in "b" above, number of people predicted to travel from another state and country and select the method used to determine the attendance. 547 Predicted: € Direct Count € Indired Count u Representative Survey € Informal Survey € Structured Estimate d. Attendance, Paid for Overnight Lodging Enter the number of predicted to attend this activity and pay for overnight lodging and select the method used to determine the attendance. 196 Predicted : € Direct Count € Indirect Count € Representative Survey € Informal Survey [il Structured Estimate e. Attendance, Did Not Pay for Overnight Lodging Enter the number of predicted to attend this activity without paying for overnight lodging and select the method used to determine the attendance. 1164 Predicted: € Direct Count € Indirect Count € Representative Survey € Informal Survey [' Structured Estimate f. Paid Lodging Nights Enter the number of predicted paid lodging nights and select the method used to determine the attendance. Lodging night = one or more persons in one room Predicted: 294 € Direct Count € Indirect Count € Representative Survey € Informal Survey B Structured Estimate I am an authorized agent of the organization/agency applying for funding. I understand that: Funds must be expended within the calendar year. Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. All funded requests will be monitored for progress and consistency with scope and time line as outlined. All requests for reimbursement for approved costs shall be in writing and shall have supporting slgnatduorceume,nff,penditure of the fundNsainmcleud(Perdlnitnedre)questC. ol0in Hast0ings Date:8/1 4/24 Page 172 of 258 Pasco ‘ Federal Tax ID Number:23-7027191 Or anization A enc Name:....TYPE!'Non-Profitg/g y Franklm County Hustorlcal Socnety For_Pro?t PublicA enc Application for 2025 Pasco Lodging Tax Funds 8,498AmountofLodgingTaxRequested:$ State:Wa Zip:99301 Phone:EmailAddress:(509)547—3714 admin@fchsmuseum.com 305 N 4th Ave.0“”PascoMailingAddress: T'tl fP dU At"t:._I W mpose 59/c M y Exhibit Creation and Artifact preservation Scope of Work Creating new exhibits is what helps us to bring in both new and regular visitors to the (Will be museum.We will be changing 2 exhibits for the 2025 year.This process will include included in buying the exhibit supplies,as well as the cost of printing information on to board for Contract):visitor education.We also have the responsibility of keeping the artifacts going on disnlav in (mod condition when thev are out in the nnen for Viewinn the sunnlies to Funding Outline: Non-Pasco Lod in Tax Sources:Amount:Uses of Pasco Lod in Tax:Amount: Other Grants $3,000 Tourism Marketing $2,148 Donations $5,000 Event/FestivalMarketing/Operation $1 ,350 $3,000 Tourism Facility Operation $5,000OperationsIncome Requested Pasco Lodging Tax Funds:$81498 TOTAL BUDGET:$19,498 TOTAL 5 8,498 Please attached the following (if applicable)to your application: o if your agency is a non—profita copy of your agency's current non-profit corporate registration with the Washington Secretary of State. 0 Brochures or other information about your event/activity/facility,in particular items showing recent tourism promotion efforts.(Optional) “ma“Name and ”'6‘Eleanor Neff,Executive Director Page 173 of 258 H Predicted: The State of Washin _,on re .,uires an estimate for the following ,,uestions below: Direct Count:Actual count of visitors using methods such as paid admissions or registrations,clicker counts at entry points,vehicle counts or number of chairs filled.A direct count may also include information collected directly from businesses,such as hotels,restaurants or tour guides,likely to be affected by an event. Indirect Count:Estimate based on information related to the number of visitors such as raffle tickets sold,redeemed discount certificates,brochures handed out,police requirements for crowd control or visual estimates. Re resentative Surve :Information collected directly from individual visitors/participants.A representative survey is a highly structured data collection tool,based on a defined random sample of participants,and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. Informal Surve :Information collected directly from individual visitors or participants in a non-random manner that is not representative of all visitors or participants.Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. Structured Estimate:Estimate produced by computing known information related to the event or location.For example,one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). What method was used to Asadirect result of your proposed tourism-related serVIce,prowde an determine attendance in previous estimate of:years? a.Overall Attendance Direct Count239IndirectCountEnterthetotalnumberofpeoplepredictedto attend this activity and select the method used to Representative survey Informal Survey determine the attendance.Structured Estimate b.Attendance,50+Miles 63 Dired Count Number of people predicted to travel more than Predicted E Indirect Count 50 miles to attend this activity and select the 'Representative Survey method used to determine the attendance.'"f°'ma'5”“ij Structured Estimate c.Attendance,putofState,Out of Country 25 Direct Count Of the total listed In "b"above,number of people ..Indirect Count predicted to travel from another state and country P'Ed'Cted:Representative Survey and select the method used to determine the Informal Survey attendance.Structured Estimate d.Attendance,Paid for Overnight Lodging 20 Direct Count Enter the number of predicted to attend this activity ..ind'rECt C°”_”t..Predicted.Representative Survey and pay for overnight lodging and select the method Informal Survey used to determine the attendance.Structured Estimate e.Attendance,Did Not Pay for Overnight Lodging 10 Dire“C°”"t ....Indirect Count Enter the number of predicted to attend this actIVIty Predicted:Representative Survey without paying for overnight lodging and select the mformal Survey method used to determine the attendance.Structured Estimate f.Paid Lodging Nights Predicted_Dirédcount Enter the number of predicted paid lodging nights and Ind'ren Count23RepresentativeSurveyselectthemethodusedtodeterminetheattendance....Informal Survey Lodging night =one or more persons In one room Structured Estimate I am an authorized agent of the organization/agency applying for funding.I understand that: 0 Funds must be expended within the calendar year. 0 o Allfunded requests will be monitored for progress and consistency with scope and time line as outlined. o All requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in request. Signature:Wt M4,Name (Printed):E|eanor Neff Date=8/30/24 Reporting requirements meeting state guidelines outlined in this application must be submitted with final request for reimbursement. Page 174 of 258 L’Emallzmc uadeL@ asco-wa.ov PROPOSED TIMELINEFOR 2024 (2025 BUDGET) Application Timeline August 1 Applications Available August 30 Applications Due by 5:00 pm. September TBD LTAC meeting to review and recommend allocations October TBD LTAC recommendations presented to City Council To be eligible for consideration,your complete proposal must be received via email onl by the deadline.The Committee will review proposals in a public meeting on a date to be determined.Meeting information will be posted on the City's website. Only electronic submissions are accepted: City of Pasco Lodging Tax Advisory Committee c/o Laurel McQuade,Marketing Strategist Phone:(509)975-9683 Application Deadline:Friday,August 30th by 5:00 p.m. Page 175 of 258 City of Pasco Lodging Tax Fund Overview Pasco's Lodging Tax Fund is the primary source of City funding for activities,operations,and expenditures designed to increase tourism.The City has multi-year commitments for the HAPO Center,Gesa Stadium and tourism promotion services;therefore,those applications have priority status for the use of funds. The Pasco City Council has created a Lodging Tax Advisory Committee to conduct an annual process to solicit and recommend Lodging Tax funded services for City Council consideration. Pasco Lodging Tax Advisory Committee Considerations In developing its recommendations,the Committee considers: o The estimated amount of Lodging Tax Fund available for the coming year as provided by the City’s Finance Office. 0 Thoroughness and completeness of the proposal. 0 Percent of the proposal request to the event/facility promotions budget and overall revenues. 0 Percent of increase over prior year Pasco Lodging Tax funded proposals,if any. 0 Projected economic impact within the City of Pasco,in particular projected overnight stays in Pasco lodging establishments. 0 The applicant's financial stability. 0 The applicant’s history of tourism promotion success. State Law Excerpts RCW 67.28.1816 —Use of Lodging Tax Fund. Lodging tax revenue under this chapter may be used,directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: Tourism marketing; b.The marketing and operations of special events and festivals designed to attract tourists; c.Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;or d.Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.Sec.501(c)(3)and 26 U.S.C.Sec.501(c)(6)or the internal revenue code of 1986,as amended. RCW 67.28.080 -De?nitions. 0 "Municipality"means any county,city or town of the state of Washington. 0 "Operation"includes,but is not limited to,operation,management,and marketing. 0 "Person"means the federal government or any agency thereof,the state or any agency,subdivision,taxing district or municipal corporation thereof other than county,city or town,any private corporation,partnership, association,or individual. 0 "Tourism"means economic activity resulting from tourists,which may include sales of overnight lodging, meals,tours,gifts,or souvenirs. 0 "Tourism promotion"means activities and expenditures designed to increase tourism,including but not limited to advertising,publicizing,or othenNise distributing information for the purpose of attracting and welcoming tourists;developing strategies to expand tourism;operating tourism promotion agencies;and funding marketing of special events and festivals designed to attract tourists. o "Tourism-related facility"means real or tangible personal property with a usable life of three or more years,or constructed with volunteer labor,and used to support tourism,performing arts,or to accommodate tourist activities. 0 "Tourist"means a person who travels from a place of residence to a different town,city,county,state,or country,for purposes of business,pleasure,recreation,education,arts,heritage,or culture. General Information Page 176 of 258 12/2/24 City Council Special Meeting Pa g e 1 7 7 o f 2 5 8 2025 Requests 18 Requests Total: $1,102,377 Budget: $1,000,000 2 Pa g e 1 7 8 o f 2 5 8 •Support/Operations Tourism Facility •HAPO Center $200,000 •Gesa Stadium $290,000 •Soccer Complex $172,211 •Tourism Marketing •Fund Administration $14,503 •CoP Marketing $10,000 •Tri-Cities VCB $203,376 •Time Magic $10,000 •Pasco Chamber $36,000 •Franklin Co. H.S. $5,000 •Event/Special Event •Cinco de Mayo $9,000 •Fiery Foods Festival $9,000 •Water Follies $9,000 •COPA Symphony $15,000 •CBC Volleyball $5,000 •Juneteenth $2,000 •Swim the Snake $1,000 •Charro Event $5,000 •NWAC Basketball $9,000 2025 Lodging Tax Advisory Committee Recommendations 3 Pa g e 1 7 9 o f 2 5 8 Per RCW 67.28.1816(2)(b)(ii), the City Council has the following options regarding LTAC recommendations: 1.Accept the LTAC recommendation as presented. 2.Remand the recommendation in its entirety back to LTAC if deemed unacceptable. 3.Strike individual activities entirely (line-item removal) and accept the funding amounts for others as presented. 4.Strike individual activities entirely and remand remaining items back to LTAC for further review, requiring a 45-day waiting period before final action. Council Options 4 Pa g e 1 8 0 o f 2 5 8 Pa g e 1 8 1 o f 2 5 8 AGENDA REPORT FOR: City Council December 4, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Resolution No. 4544 -Purchase of Water Rights - Wilson Sisters, LLC (5 minutes) I. REFERENCE(S): Resolution - Wilson Sisters, LLC Purchase and Sale Agreement - Wilson Sisters, LLC II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:City the authorizing 4544, No. Resolution approve to move I Manager to execute the Purchase and Sale Agreement with Wilson Sisters, LLC, for purchase of water rights. III. FISCAL IMPACT: Approximately $54,000 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 outlines purchase of approximately 13-acre feet of water rights from Wilson Sisters, LLC for $4,150 per acre feet. A 13-acre feet water rights can serve (for Domestic and Irrigation needs) 21 lots sized 7,500 square feet each. Page 182 of 258 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 Wilson Sisters, 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. Staff recommends authorizing the Purchase and Sale Agreement with Wilson Sisters, LLC. for purchase of water rights. Page 183 of 258 Resolution – Water Rights PSA Wilson Sisters, LLC - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AND SALE AGREEMENT WITH WILSON SISTERS, LLC TO PURCHASE WATER RIGHTS. WHEREAS, the City of Pasco (City) is experiencing rapid population growth and development, significantly increasing the demand for water resources to sustain both residential and commercial needs; and WHEREAS, the City's existing water rights are nearing full utilization, and it is crucial to secure additional water rights to ensure the continued availability of water for its residents and future development; and WHEREAS, the City has identified opportunities to purchase water rights from private owners, which are essential to supporting the City’s projected growth and maintaining a sustainable water supply. 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 Purchase and Sale Agreement between the City of Pasco and Wilson Sisters, LLC, as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Purchase and Sale Agreement on behalf of the City of Pasco; and to make minor substantive changes as necessary to execute the Agreement. Be It Further Resolved, that this resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 184 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 1 of 17 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 Wilson Sisters, 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(F). Water Right Certificate No. CG3-01349(F) authorizes the use of 32.58 gallons per minute (“gpm”) and 13 acre-feet per year (“afy”) of water for irrigation purposes. Water Right Certificate No. CG3-01349(F) 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 32.58 gpm and 13 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 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 afy of water determined by the Ecology to be valid and authorized under the Seller’s Certificate (“Purchase Price”). Exhibit A Page 185 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 2 of 17 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 $2,698 into Escrow, which deposit and 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. 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 Page 186 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 3 of 17 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. 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 Page 187 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 4 of 17 Franklin County Water Conservancy Board and all other costs associated with the application process. 6.3 Seller will cooperate with Buyer 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 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 Page 188 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 5 of 17 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. 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. Page 189 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 6 of 17 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. 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 Page 190 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 7 of 17 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. 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 statutory warranty 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 Page 191 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 8 of 17 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: (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 special warranty 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. Page 192 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 9 of 17 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. 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. Page 193 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 10 of 17 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 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: Wilson Sisters, LLC Elinor Magnuson C/O Robbi Magnuson 1316 E Rockwood Blvd Spokane, WA 99203 Email: magnusonlaw1960@gmail.com 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. Page 194 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 11 of 17 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. 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 regard to the water right purchase and sale that is the subject of this Agreement, Tippett Company represents only Sellers. Seller agrees to indemnify, defend, and hold Buyer harmless from and against the claims 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. Page 195 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 12 of 17 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. 34. Counterparts. This Agreement may be executed in multiple counterparts, all of which together shall constitute one agreement. Page 196 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 13 of 17 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 SELLER: _________________________________ Wilson Sisters, LLC 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 Page 197 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 14 of 17 , residing at My appointment expires: Page 198 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 15 of 17 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: Page 199 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 16 of 17 EXHIBIT A SELLER’S CERTIFICATE Summary of Water Right CG3-01349(F) Name on Water Right Wilson Sisters, LLC Priority Date July 11, 1970 Instantaneous Quantity 32.58 gallons per minute Annual Quantity 13 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 3.6 acres Period of Use March 1 – November 1 Place of Use The place of use includes the Franklin County parcels: 112-520-230. Franklin County parcel No. 112-520-230 replaced parcel Nos. 112-520-264, 112-520-246, 112- 550-282. This consolidation of parcels is described under AFN #1978474, recorded on September 14, 2023. The three consolidated parcels are referred to as “Parcel E” in the survey above. Page 200 of 258 Wilson Sisters, LLC / City of Pasco Purchase and Sale Agreement Page 17 of 17 EXHIBIT B LEGAL DESCRIPTION OF SELLER’S FORMER LAND Tract A: The south 493.89 feet of that portion of the NE¼ of Section 34, T. 9 N., R. 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 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 N 00°30’15” E along said center Section line a distance of 987.77 feet to the True Point of Beginning. EXCEPTING the following described tract: Beginning at the North Quarter-Corner of said 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 N 68°36’44” E to the North line of former Franklin County Tax Parcel 112- 520-282; thence N 89°40’35” W a distance of 1,254 feet, more or less, to the centerline of Section 34; thence S 00°30’15” W 493.89 feet to the True Point of Beginning. Containing 7.5 acres, more or less.” Page 201 of 258 AGENDA REPORT FOR: City Council November 27, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Resolution No. 4545 - Purchase of Water Rights - Columbia East, LLC (5 minutes) I. REFERENCE(S): Resolution - Columbia East, LLC Purchase and Sale Agreement - Columbia East, LLC II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:City the authorizing 4545, No. Resolution approve to move I Manager to execute the Purchase and Sale Agreement with Columbia East, LLC, for purchase of water rights. III. FISCAL IMPACT: Approximately $1,309,000 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 outlines purchase of approximately 315- acre feet of water rights from Columbia East LLC for $4,150 per acre feet. A 315-acre feet water rights can serve (for Domestic and Irrigation needs) 525 lots sized 7,500 square feet each. Page 202 of 258 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 is If LLC. East Columbia staff rights water the purchase to from 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. This item was discussed at the December 2, 2024, Council Regular meeting. Staff with recommends authorizing the Purchase and Sale Agreement Columbia East, LLC for purchase of water rights. Page 203 of 258 Resolution – Water Rights PSA Columbia East LLC - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AND SALE AGREEMENT WITH COLUMBIA EAST, LLC TO PURCHASE WATER RIGHTS. WHEREAS, the City is experiencing rapid population growth and development, significantly increasing the demand for water resources to sustain both residential and commercial needs; and WHEREAS, the City's existing water rights are nearing full utilization, and it is crucial to secure additional water rights to ensure the continued availability of water for its residents and future development; and WHEREAS, the City has identified opportunities to purchase water rights from private owners, which are essential to supporting the City’s projected growth and maintaining a sustainable water supply. 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 Purchase and Sale Agreement between the City of Pasco and Columbia East, LLC, as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Purchase and Sale Agreement on behalf of the City of Pasco; and to make minor substantive changes as necessary to execute the Agreement. Be It Further Resolved, that this resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 204 of 258 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 Exhibit A Page 205 of 258 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. Page 206 of 258 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. Page 207 of 258 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 Buyer 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 Page 208 of 258 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. Page 209 of 258 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. Page 210 of 258 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. Page 211 of 258 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: Page 212 of 258 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. Page 213 of 258 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 Page 214 of 258 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. Page 215 of 258 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. Page 216 of 258 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. Page 217 of 258 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 Page 218 of 258 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: Page 219 of 258 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: Page 220 of 258 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. Page 221 of 258 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 corner 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 Page 222 of 258 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, Washington, 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 Page 223 of 258 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. Page 224 of 258 AGENDA REPORT FOR: City Council December 4, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Adam Lincoln, City Manager City Manager SUBJECT: Resolution No. 4546 - Requesting an Extension of the Interlocal and Financing Lease Agreement for the HAPO Center Facility Until May 31, 2025 (5 minutes) I. REFERENCE(S): Joint Resolution HAPO White Paper II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4546, modifying the interlocal cooperation County, Franklin and Pasco City the between agreement of Washington, regarding the financing, acquisition, and ownership of a multi- purpose arena and exhibition facility (HAPO Center) amending Resolutions 94- 126, 2014-494 and 2024-4448. III. FISCAL IMPACT: Expenses - Approximately $200,000 annually IV. HISTORY AND FACTS BRIEF: The HAPO Center, managed by Franklin County and jointly funded with the City of Pasco (City), operates under a 1994 interlocal agreement and financing lease. Since then, Pasco has invested $7.7 million, with $5.6 million covering operational subsidies over 30 years and $2.1 million for 20 years of loan payments, fully paid off in 2014. The City, lacking bonding capacity at the time, wasn't involved in debt issuance. Operational deficit subsidies have been paid annually, sometimes requiring additional funds for operational reserves during cash flow challenges. In 2014, the City and Franklin County amended the agreement to include operating reserve contributions. The original agreement was set to expire on Page 225 of 258 May 24, 2024, the Council passed Resolution No. 4448 extending the interlocal agreement until December 31, 2024. V. DISCUSSION: Since the initial extension was approved, Franklin County and City staff have been collaborating on a master planning effort. A draft of the plan is expected to be completed in early 2025. To allow sufficient time for review, feedback, and discussions on the path forward, City and County staff recommend extending the agreement through May 31, 2025. At the request of the State Auditor's Office, City staff have also provided the County with additional language to address financial reporting requirements. The following provision is included in the attached resolution: "Each subsidy payment request must include a report showing the budgeted and actual income and expenses for the period, broken down into clear categories. To ensure the subsidy amount is accurate, a full summary comparing the year's total income and expenses must be provided to the City’s finance department. This summary should be submitted by the end of January each year for the previous year." Although Franklin County has not yet taken formal action on the extension as of December 6, 2024, staff recommends approval of the attached resolution. Upon approval by Franklin County, the resolution would authorize the City Manager to execute the agreement extension and implement the amended financial reporting requirements for subsidy payment requests. Page 226 of 258 JOINT RESOLUTION FRANKLIN COUNTY RESOLUTION NO. _______ CITY OF PASCO RESOLUTION NO. ______ BEFORE THE BOARD OF COMMISSIONERS, FRANKLIN COUNTY, WASHINGTON, AND THE COUNCIL OF CITY OF PASCO, WASHINGTON REGARDING MODIFYING THE INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF PASCO AND FRANKLIN COUNTY, WASHINGTON, REGARDING THE FINANCING, ACQUISITION AND OWNERSHIP OF A MULTI-PURPOSE ARENA AND EXHIBITION FACILITY (HAPO CENTER), AMENDING RESOLUTIONS 94-126, 2014-484 AND 2024-4448. WHEREAS, on May 25, 1994, pursuant to RCW 39.34, the Parties entered into the “Interlocal Cooperation Agreement Regarding Financing, Acquisition and Ownership of a Multi- Purpose Arena and Exhibition Facility with the City of Pasco”; and WHEREAS, on October 1, 1994, the City of Pasco and Franklin County (Parties) pursuant to RCW 39.34, entered into a Financing Lease for the construction and management of the HAPO Center; and WHEREAS, on December 3, 2014, the Parties modified the May 25, 1994, Interlocal Agreement under Franklin County Resolution No. 2014-484; and WHEREAS, the May 25, 1994, Interlocal Agreement expire on or about May 25, 2024; and WHEREAS, on May 20, 2024, the Franklin County Board of Commissioners and Pasco City Council extended the interlocal agreement until December 31, 2024 to allow time to develop as Master Plan for the HAPO Center and surround area to determine best use of facility; and WHEREAS, the Parties value the relationship established under the aforementioned interlocal agreement; and WHEREAS, the Parties have identified a need to further extend the May 25, 1994, Interlocal agreement modified on May 20, 2024, by Resolution No. 4448 to the Interlocal Agreement to finalize the Master Plan; and WHEREAS, the Board of Commissioners constitutes the legislative authority of Franklin County and deems this to be in the best interest of Franklin County; and Page 227 of 258 WHEREAS, the Council for the City of Pasco constitutes the legislative authority for the City of Pasco and deems this to be in the best interest of the City to extend the Interlocal Agreement for the HAPO Center facility to the end of May 2025; and WHEREAS, the Washington State Auditors Office has recommended the City update the interlocal agreement for financial reporting. NOW, THEREFORE, BE IT RESOLVED the Parties hereby agree to remove and replace in full paragraph 11.2 of the 1994 “Interlocal Agreement Regarding Financing Acquisition and Ownership of a Multi-Purpose Arena and Exhibition Facility with the City of Pasco,” as modified by the December 3, 2014, and May 20, 2024, modifications with the following language: Section 11.2 Duration and Termination of this Agreement This agreement shall automatically terminate on May 31, 2024. This Agreement may be terminated, in whole or in part, through adoption of a joint resolution to that effect by the Parties. This agreement shall be effective if signed in separate documents as if all parties signed the same document. BE IT FURTHER RESOLVED the Parties hereby agree to remove and replace Section 8.4 of the 1994 “Interlocal Agreement Regarding Financing Acquisition and Ownership of a Multi- Purpose Arena and Exhibition Facility with the City of Pasco,” as modified by the December 3, 2014, and May 20, 2024, modifications with the following language: Section 8.4 Payment of Operating Costs Each subsidy payment request must include a report showing the budgeted and actual income and expenses for the period, broken down into clear categories. To ensure the subsidy amount is accurate, a full summary comparing the year's total income and expenses must be provided to the City’s finance department. This summary should be submitted by the end of January each year for the previous year. APPROVED this ___ day of December, 2024 APPROVED this __ day of __________, 2024. CITY: CITY OF PASCO, a Municipal Corporation of the State of Washington __________________________ Pete Serrano, Mayor COUNTY: FRANKLIN COUNTY, a Political Subdivision of the State of Washington __________________________ Rocky Mullen, Chair __________________________ Clint Didier, Commissioner Page 228 of 258 ATTEST BY: __________________________ City Clerk __________________________ Steve Bauman, Commissioner ATTEST BY: __________________________ Clerk of the Board APPROVED AS TO FORM: By: __________________________ Eric W. Ferguson, City Attorney APPROVED AS TO FORM: Shawn Sant, Prosecuting Attorney for Franklin County By: __________________________ Deputy Prosecuting Attorney Page 229 of 258 RICHA SIGDEL 1 Optimizing Community Resource: HAPO Facility's Current ILA and Path Forward Overview The HAPO Center is a facility managed by Franklin County, and jointly funded by the County and the City of Pasco. Since 1994, City of Pasco has invested a substantial amount, totaling $7.7 million, into the facility. Of the $7.7 million, $5.6 million was for operational subsidies over 30 years and $2.1 million was for loan (debt service) payments over 20 years of loan period. Debt acquired in 1994 was fully paid off in 2014. City of Pasco was not included in the issuance of debt due to City’s lack of bonding capacity that the time. City has paid an operational deficit subsidy for every year the facility has been in operations. Some years, funds have been requested of the City to build operational reserves due to cash flow issues during adverse periods. In 2014, City and County revised the interlocal agreement for operation of the facility to add operating reserve contributions to manage cash flow for the facility. The current agreement expires on May 25, 2024. On May 25, 1994, City of Pasco and Franklin County also entered into a ground lease agreement for the purpose of developing sports fields, the Pasco Sporting Complex. The ground lease was provided to the City for a nominal amount with expectation that the City will develop the then raw land into a sports field. The most recent lease was signed on November 6, 2020 with the agreement expiring on November 6, 2025. Initial Facility Investment Franklin County issued $6.3 in debt for the facility. $2.4 million of that debt was limited tax general obligation (LTGO) that are paid directly via general funds without additional tax obligations to residents. City of Pasco and Franklin County shared in payment of the general tax obligation bond debt service. This debt accounts for the debt service contributions referred above in the Overview section. $3.9 million in unlimited tax general obligation (UTGO) bond was also approved by residents of City of Pasco and Franklin County for the construction of the facility; a UTGO bond provides additional taxes from the residents to cover proposed capital expenditures. Debt service for $3.9 million was collected via increased taxes on City and County residents. It is important to note that the current contract governing the HAPO Center does not grant the City of Pasco any decision-making authority over the facility. Instead, the power to make decisions regarding the HAPO Center lies solely with the Franklin County Page 230 of 258 RICHA SIGDEL 2 Commissioners. This arrangement has been in place since the inception of the facility, and the City of Pasco has operated within the parameters defined by this agreement. As mentioned before, County and the City also signed a ground lease for the City to construct and operate sport fields. This area is currently the softball fields. This softball field was fully developed by the City and at the time of the lease was seen as a good complement to the planned TRAC facility and facilitating the economic development desired in the Road 68 area. It is difficult to pinpoint the exact dollars in investment the City has made to make this land to the current facility, however, conservative estimates are greater than $4 million. State law authorizes the collection of the 2% local tax on lodging facilities (hotels and motels). The funds originally could be used for stadiums and for tourism promotion activities. In 1993, like several cities prior to that time, Pasco was granted by State law authority to assess an additional 2% lodging tax fund specifically the City's share of TRAC, currently known as HAPO Center. The legislature subsequently increased the base lodging Page 231 of 258 RICHA SIGDEL 3 tax to 4% and eliminated the individual taxing authorizations. The amendment also required the establishment of a Lodging Tax Advisory Committee (LTAC) to review and recommend proposed uses of the lodging tax annually. County can implement its own basic and additional lodging tax totaling up to 4%. The LTAC taxes for County would be collected from facilities residing in unincorporated areas of the County. The guiding principle for the use of lodging taxes is that they must be used for activities, operations and expenditures designed to increase tourism. Specifically, lodging taxes can be used for: • Tourism marketing; • Marketing and operations of special events and festivals designed to attract tourists; • Operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district; or • Operations of tourism-related facilities owned or operated by nonprofit organizations (RCW 67.28.1816). City has requested and received lodging tax assistance to service the debt for HAPO center. Historically, City has also relied on general fund to support operational deficits of the center. Facility Improvements The interlocal agreement outlines the process for additional facility improvement to the facility; the process set forth is for County Commissioners to propose any facility improvements to the City and the participation terms will be determined by subsequent interlocal agreement. From staff research, no significant facility improvement has been performed through this framework. Over the years, operational decisions to revise the services provided within the facility like ice rink, RV Park etc. have been made by the County. Most recently, County invested $6 million of its ARPA funds to update the facilities HVAC infrastructure. Similarly, it is considering another $5-6 million investment in additional HVAC infrastructure with .09 Fund (Rural counties with a population of less than 100 people per square mile or a county smaller than 225 square miles may impose a 0.09% sales tax credit against the state sales tax. These funds — commonly called .09 Funds — can be used to pay for public facilities including public infrastructure serving economic development purposes – MRSC). An additional $3 million has been earmarked by Washington State Senate in the 2024 supplemental capital budget, but not gone through all the steps for allocation yet. County has not requested the City to contribute to the capital improvements which would have included discussion on cost and a new interlocal agreement to share the improvement costs per the existing interlocal agreement between the agencies. Page 232 of 258 RICHA SIGDEL 4 City, in collaboration with Franklin County, hired ALSC to perform the facility audit for the purpose of assessing the condition of basic building systems and site improvements. The facility audit work included, but not be limited to, assessment of HVAC, electrical, security, telecommunications systems, and data management. Interim Public Works Director Maria Serra has made necessary adjustments to the estimated project costs to meet the City’s standard. Overall, it has been determined that $4.8 million in further investments are recommended for this facility. Of the $4.8 million, $3.2 million are necessary to preserve the condition of the facility, whereas the remainder are recommended at improvements. *NOTE: Costs are adjusted from construction estimated ALSC provided to account for project soft costs. Funding Mechanism As mentioned before, City has utilized internal and external (LTAC) funds to service the capital and operational obligations for the HAPO Center. With City of Pasco’s population representing a significant portion of Franklin County’s residents, we share a close COMPONENT ESTIMATED COMPLETE PROJECT COST COMMENT Repair damaged items or replacement of items in poor condition/ end of useful life $1,200,000 NECESSARY Parking lot pavement repairs and overlay $ 2,000,000 NECESSARY Access Control/Video Security System $1,000,000* RECOMMENDED Voice Fire Alarm $ 600,000* RECOMMENDED (may become necessary if triggered by expansion or other improvements at the facility takes place) TOTAL $4,800,000 Page 233 of 258 RICHA SIGDEL 5 economic and operational relationship with the County. County significantly benefits from the economic and quality of life improvements made by the City, whereas the City depends on services like the Court that the County operates. To show the close economic relationship, below are some but not all funding sources that the City residents and businesses generate for the County. The revenues are estimates and not exact figures. Revenue Sources (Annual) City County Regular Sales Tax City receives .85% of the sales tax collected, whereas County receives .15%. $ 20,400,000 $ 3,600,000 Public Safety Sales Tax County receives 60% of this tax collected in the City whereas the City receives 40% of the revenue $ 2,600,000 $ 3,400,000 Criminal Justice Sales Tax County receives 10% of this tax collected in the City, remainder is allocated between unincorporated areas and City based on population. $ 1,950,000 $ 216,667 Mental Health and Chemical Dependency Sales Tax City does not receive any of this tax revenue. $ - $ 2,200,000 .09 Fund City does not receive any of this tax revenue. $ - $1,800,000 Total Estimated Revenue $ 24,950,000 $ 11,216,667 The list above represents significant revenue sources for the County that residents within Pasco generate, but it is not an exhaustive list. These funds are crucial for serving both the residents of the City of Pasco and the wider County community, given that all City residents are also County residents. All funding investment in HAPO for either the City or the County would be most appropriate from their General Fund, LTAC, federal or state grants, or .09 Funds. General fund receives sales and .09 Fund taxes that the economic development from HAPO facility has generated, whereas LTAC funds are also generated due to increased tourism generated by the facility. Receiving grants are ideal, but there are limited opportunities for facilities like HAPO. If the $3 million in Senate earmark passes the House, it is a significant but uncommon allocation for the facility. If a decision to increase City’s investment in the facility is made, it is high likelihood that City would be expending its General Fund reserves/revenues to make such investment. Page 234 of 258 RICHA SIGDEL 6 Next Steps The interlocal agreement governing the HAPO Center is set to expire in May 2024. As this expiration date approaches, it is essential for us to consider the various scenarios that may unfold. Below, we have outlined some key scenarios for your consideration: Renewal of the Existing Agreement: One option is to seek a renewal of the current interlocal agreement between the City of Pasco and Franklin County Commissioners. This would maintain the status quo, with the City's financial contributions continuing without any additional decision-making authority. This renewal could be short term in nature to find better long-term arrangement. This option would also allow for a Master Plan to be created to identify the best uses for the facility; an effort that will be led by the County. Renegotiation of the Agreement: Another option is to enter into negotiations with Franklin County to potentially modify the terms of the interlocal agreement. This could involve discussions regarding the City's level of financial commitment, as well as the possibility of gaining more influence over decision-making processes related to the HAPO Center. Exploration of Alternative Funding Models: The County and City could explore alternative funding models for the HAPO Center that reduce the financial burden on Pasco taxpayers. This might involve seeking partnerships with private entities, Public Facilities District, or pursuing grants and sponsorships to offset costs. Withdrawal from the Agreement: The City could consider withdrawing from the interlocal agreement altogether. This would involve discontinuing financial support for the HAPO Center and potentially exploring other uses for the funds previously allocated to it. Acquisition of the Property: The City has the option to acquire the facility from the County and undertake enhancements to maintain the current service model or adapt the facility's purpose according to the community's and Council's preferences. Acquisition of the facility would require likely nominal amount of purchasing price however at least $4.8 million in improvement costs. Historical Challenges Below are some challenges that the facility and the partnership has faced that might need to be addressed depending 1. Decision making authority for the City of Pasco 2. Definition of HAPO facility (includes RV Park, Ice Facility?) 3. Maintenance plan for the facility Page 235 of 258 RICHA SIGDEL 7 Conclusion As we approach the expiration of the interlocal agreement in 2024, it is imperative that we engage in a thoughtful and collaborative discussion with Franklin County to determine the best course of action for the City of Pasco regarding the HAPO Center. We are looking to Council for input and guidance on these scenarios as they will be invaluable as we navigate this important decision-making process. We have initiated conversations with Franklin County staff in advance of the agreement's expiration to ensure a smooth transition and to explore the possibilities outlined above. Your feedback and insights will be instrumental in shaping our approach moving forward. Page 236 of 258 12/9/2024 Pasco City Council Regular Pa g e 2 3 7 o f 2 5 8 HAPO Interlocal Agreement Extension 11/18/2024 Pasco City Council Pa g e 2 3 8 o f 2 5 8 1.History 2.Current Status 3.Path Forward Pa g e 2 3 9 o f 2 5 8 History •Original Agreement signed in 1994. •City and County collaborated to build the facility on County land (50/50 split of cost). •County runs the facility. City and County split the operational costs and maintain reserve standards. •No significant facility improvements other than investment of $6M from ARPA grants received by the County. •Original Agreement expired May 24, 2024. •City and County extended agreement May 20, 2024 to December 31, 2024. Pa g e 2 4 0 o f 2 5 8 Current Status •Master Planning efforts near completion by Mackay Sposito •Involved County, City, local businesses and community members. •Plan will not be finalized in time to allow full review or determine path forward within current extension period Pa g e 2 4 1 o f 2 5 8 Path Forward •Extend the agreement to allow additional time for master plan review and discussion to May 31, 2025 •Authorize City Manager to extend agreement by approval of Resolution Pa g e 2 4 2 o f 2 5 8 Questions?Pa g e 2 4 3 o f 2 5 8 AGENDA REPORT FOR: City Council December 4, 2024 TO: Adam Lincoln, City Manager City Council Special Meeting: 12/9/24 FROM: Adam Lincoln, City Manager City Manager SUBJECT: *Resolution No. 4547 - Financing Agreement for Benton County Emergency Services 800MHz Radio Project (5 minutes) I. REFERENCE(S): Proposed Resolution Financing Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:the authorizing 4547, No. City approve to move I Resolution Manager to execute a Financing Agreement with the Cities of Richland and Kennewick and Counties of Benton and Franklin for capital financing on behalf of Benton County Emergency Services for 800MHz Radio Project. III. FISCAL IMPACT: shared the be will Project Radio $30 million this for Funding 800MHz responsibility of Richland, Pasco, Kennewick, Benton County and Franklin County. Each jurisdiction agrees to its one-fifth share to be paid consistent with the Motorola Finance Agreement and the future 4th Amended and Restated BCES Interlocal. The Motorola Finance Agreement will be brought to Richland City Council for approval only after all five (5) agencies execute the Capital Financing Agreement. Substantial savings ($7-10 million dollars) will result if the Motorola Finance Agreement is executed prior to the end of 2024. IV. HISTORY AND FACTS BRIEF: The City has been working in concert with Franklin and Benton Counties and the Cities of Kennewick and Richland toward the consolidation of the two Public Safety Answering Points (PSAPs) serving these agencies and others in the Tri-Cities region since 2007. Consolidation of the two PSAPs into one, operating on an 800 MHz platform for Page 244 of 258 police and VHF for fire was a long-time City Council goal. In June 2017, Council approved an Interlocal Agreement and transitioned the dispatch services to Benton County Emergency Services (BCES) and became a member agency of BCES. BCES has established a digital 800MHz radio system that provides and will continue to provide viable public safety communications for many years into the future. Franklin County and public safety agencies within that County have historically operated under a separate microwave system exclusively located in Franklin County. V. DISCUSSION: BCES is currently engaged in a project to replace failing public safety radio infrastructure across both Benton and Franklin Counties. Included in this project is both infrastructure and mobile subscriber radios that collectively allow public safety personnel to communicate effectively across the bi-county area. The law enforcement agencies in the area predominantly utilize the 800MHz radio platform and solely use Motorola radios and equipment. Historically, the region's fire departments and districts have utilized a VHF radio platform, which has been failing frequently and has reached the end of its useful life. On behalf of BCES, Richland contracted with Federal Engineering to conduct a study to provide the best recommendation for replacing the failing VHF system. After significant study and interaction with the first responder stakeholder groups, the recommendation is for regional fire personnel to transition to the 800MHz system. To facilitate this, additional tower sites must be constructed to expand and reinforce system capabilities and interoperability. The total cost of the project is expected to be approximately $30 million dollars, which will be split equally (one-fifth) between the cities of Richland, Pasco, and Kennewick and the counties of Benton and Franklin. As BCES's Administrative Jurisdiction, the City of Richland enters into agreements and contracts on behalf of BCES since BCES is not a separate legal entity and has no legal capacity to contract. The proposed Capital Financing Agreement requires each of the five listed agencies to commit to its respective one-fifth portion of the project cost. In addition, the project will be captured in a future updated interlocal agreement governing Benton County Emergency Services, which Council will consider at a later date. Staff recommends approval of the resolution authorizing the City Manager to execute the Financing Agreement for the 800MHz Radio Project. Page 245 of 258 Resolution – 800 MHz Radio Project Financing Agreement - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A FINANCING AGREEMENT WITH THE CITIES OF RICHLAND AND KENNEWICK AND COUNTIES OF BENTON AND FRANKLIN FOR CAPITAL FINANCING ON BEHALF OF BENTON COUNTY EMERGENCY SERVICES FOR 800 MHz RADIO PROJECT. WHEREAS, Benton County Emergency Services (BCES) is a local organization created in 1996 pursuant to the Interlocal Cooperation Act (Ch. 39.34 RCW) and RCW 38.52.070 related to Emergency Management; and WHEREAS, the current members of BCES have agreed that the City of Richland, as the Administrative Jurisdiction, shall continue to serve as the legal entity responsible for employing staff and providing necessary support services for BCES operations; and WHEREAS, through establishment of the Southeast Communications Center (SECOMM), BCES provides communication and dispatching for public safety and emergencies for jurisdictions located in incorporated and unincorporated Benton and Franklin Counties, and for any agencies subscribing to BCES for such services; and WHEREAS, regional public safety communications equipment is in dire need of replacement and upgrade; and WHEREAS, the acquisition and ownership allocation of public safety radio equipment, specifically the 800 MHz Radio Project, is of regional concern, and the terms and conditions of the replacement system’s acquisition and ownership will be addressed in the proposed Fourth Amended and Restated Interlocal Agreement for Benton County Emergency Services; and WHEREAS, the Cities of Richland, Pasco, and Kennewick, and the Counties of Benton and Franklin will share the cost of the 800 MHz Radio Project, with each jurisdiction responsible for one-fifth of the total cost; and WHEREAS, the City of Richland, as the Administrative Jurisdiction for BCES, is responsible for entering into the Finance Agreement with Motorola on behalf of BCES for the total cost of the project; and WHEREAS, the Capital Financing Agreement guarantees that each Financing Participant is responsible for its one-fifth portion of the total cost associated with the 800 MHz Radio Project over the course of a 10-year period consistent with the terms of the Motorola Finance Agreement; and Page 246 of 258 Resolution – 800 MHz Radio Project Financing Agreement - 2 WHEREAS, the Motorola Financing Agreement will be considered for approval by Richland City Council on behalf of BCES only if all five (5) jurisdictions named in the Capital Financing Agreement and the BCES Executive Board approves the 800MHz Radio Project to move forward; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into the Financing Agreement for the 800 MHz Radio Project with the City of Richland on behalf of BCES. 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 Financing Agreement between the Cities of Pasco, Kennewick, and Richland and the Counties of Benton and Franklin, Washington as attached hereto and in substantial conformity therewith and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Financing Agreement on behalf of the City of Pasco. 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 247 of 258 1 FINANCING AGREEMENT REGARDING CAPITAL FINANCING BY THE CITY OF RICHLAND ON BEHALF OF BENTON COUNTY EMERGENCY SERVICES (BCES) For the 800 MHz Radio Project Motorola Project Nos. WA-23P072 (infrastructure) and WA-24P073M (subscriber units) This Financing Agreement (the “Financing Agreement”) is dated for reference purposes as of this _____ day of _______________, 2024, and is entered into among the Capital Financing Member identified below, and each of the Financing Participants identified below, for the purpose of financing the 800MHz Radio Project (the “Project”). Pursuant to Revised Code of Washington (RCW) 38.52.070 and the Interlocal Agreement, the BCES Members have established a local organization for emergency management in accordance with the State Emergency Management Plan and Program. This Financing Agreement is entered into as a condition precedent to execution of the Fourth Amended and Restated Interlocal Agreement for Benton County Emergency Services (the “BCES Interlocal Agreement”) by and among the following parties: Benton County, a political subdivision of the State of Washington; Franklin County, a political subdivision of the State of Washington; City of Kennewick, a Washington municipal corporation; City of Richland, a Washington municipal corporation; City of West Richland, a Washington municipal corporation; City of Prosser, a Washington municipal corporation; City of Benton City, a Washington municipal corporation; City of Pasco, a Washington municipal corporation; and Benton County Fire Protection District Nos. 1, 2, and 4, all of which are Washington special purpose districts (collectively, the “BCES Members”). For purposes of this Financing Agreement, the City of Richland is the “Capital Financing Member” and City of Kennewick, City of Pasco, Benton County, and Franklin County are referred to collectively as the “Financing Participants” and individually as “Financing Participant.” No other members of BCES are participating in this Financing Agreement. Section 1. Definitions. Capitalized terms used in this Financing Agreement shall have the meanings given such terms in the recitals hereof and as follows: “Executive Board” means the governing board of BCES created pursuant to the BCES Interlocal Agreement. “Bonds” mean bonds, notes or other evidences of borrowing issued by a Capital Financing Member to finance and/or refinance capital assets on behalf of BCES and its Members. “Budget” means the budget prepared by the BCES Director in consultation with the Administrative Jurisdiction, and submitted to the Executive Board for its approval in accordance with Section 4.F of the BCES Interlocal Agreement, which budget shall set forth (a) an estimate of the costs of capital improvements or acquisitions required to be made to BCES Capital Facilities and Assets within the applicable year, (b) on a line item basis, all anticipated revenues and Exhibit A Page 248 of 258 2 expenses for the operation and maintenance of existing BCES Capital Facilities and Assets for the applicable year, and (c) any information required by policies adopted by the Executive Board. “Capital Contribution” means, for each Financing Participant, that Financing Participant’s Capital Contribution Percentage multiplied by the Capital Project Cost, plus interest and administrative fees calculated in accordance with Section 2.1 of this Financing Agreement. “Capital Contribution Percentage” means the percentage of the Capital Project Cost allocated to the Capital Financing Member and each Financing Participant, as follows: Participant Contribution Percentage Role City of Richland 20% Capital Financing Member City of Kennewick 20% Financing Participant City of Pasco 20% Financing Participant Benton County 20% Financing Participant Franklin County 20% Financing Participant Total 100.00% “Capital Project Cost” means the principal cost of the Project (not including interest) plus all costs of issuance, administrative expense, and similar costs incident to obtaining such financing, as described in Section 2.1 of this Financing Agreement. “Code” means the Internal Revenue Code of 1986, as amended. “Costs of Maintenance and Operation” means all reasonable expenses incurred by BCES in causing the Project to be operated and maintained in good repair, working order and condition over the financing period. “Designated Representative” means the Mayor, City Manager, or other Executive or Finance Officer, as selected by each Financing Participant to act as its authorized representative for purposes of this Financing Agreement, or the designee of such person. “Effective Date” has the meaning set forth in Section 4.7 of this Financing Agreement. “BCES Director” means the director selected by the Administrative Jurisdiction and confirmed by the Executive Board pursuant to Section 3.A.2 of the BCES Interlocal Agreement. “Project” means the expansion and upgrade of the existing Benton County ASTRO 25 800MHz trunking radio system by adding up to eleven (11) additional radio sites across Benton and Franklin counties to provide the required coverage, functionality and interoperability needed for effective public safety response. The Project includes the purchase and commissioning of necessary subscriber radios (mobiles and portables) for all users transitioning from the VHF system to the expanded 800MHz system. Section 2. Financing of the Project 2.1. Responsibilities of Capital Financing Member. The Capital Financing Member Page 249 of 258 3 agrees to obtain or provide financing for the Project, in the manner determined by it, in its sole discretion, as providing the most efficient method to finance the Project. (a) Capital Project Cost. The Capital Project Cost shall be determined based on the actual Project cost, including all costs of issuance, administrative costs, reserves, or other expenses associated with such obtaining the financing. (b) Interest Determination and Calculation of Capital Contributions. Each Financing Participant’s Capital Contribution shall include its allocable share of the Capital Project Cost plus interest as identified in the agreement with Motorola for Project Nos. WA-23P072 (infrastructure) and WA-24P073M (subscriber units). The Capital Financing Member agrees not to charge the Financing Participants a separate administrative fee related solely to its role as Capital Financing Member. If the Capital Financing Member utilizes internal funds to provide such financing, the interest rate shall be equal to the rate earned on the Local Government Investment Pool (or other similar investment strategy utilized by the Capital Financing Member for the investment of idle funds). If the Capital Financing Member chooses, in its sole discretion, to finance the Project through the issuance of Bonds or another form of borrowing, the interest rate shall be equal to the interest rate owed on the borrowing. 2.2. Responsibilities of Financing Participants (a) Capital Contributions. Each Financing Participant shall be obligated to pay an amount equal to its Capital Contribution without regard to the payment or lack thereof by any other Financing Participant. No Financing Participant shall be obligated to pay the Capital Contribution of any other Financing Participant, and each Financing Participant shall be obligated to budget for and pay its Capital Contribution. The obligation of each Financing Participant to pay its Capital Contribution shall be an irrevocable full faith and credit obligation of such Financing Participant, payable from property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the Financing Participant on all of the taxable property within the Financing Participant and other sources of revenues available therefor. Each Financing Participant has or will set aside and include in its calculation of outstanding non-voted general obligation indebtedness an amount equal to the principal component of its outstanding Capital Contribution. Each Financing Participant’s obligation to pay the Capital Contribution shall not be contingent on the receipt of any revenues from other sources. Any Financing Participant may prepay its Capital Contribution. Any such prepayment of one or more Financing Participants shall not affect the Capital Contribution Percentages of the remaining Financing Participants. Any Financing Participant that elects to prepay its Capital Contribution shall be responsible for paying all costs associated with such prepayment, if any. 2.3. Reserved. 2.4. Billing of Financing Participants. Each Financing Participant shall be billed for its Capital Contribution, plus interest, based on the established repayment schedule in the contract(s) executed between Capital Financing Member and Motorola for Project Nos. WA- 23P072 (infrastructure) and WA-24P073M (subscriber units), or more frequently as determined by the Executive Board, calculated as provided above, and due within 30 days of the receipt. Page 250 of 258 4 2.5. Tax Exempt Financing. If the Capital Financing Member, in its sole discretion, determines to issue tax-exempt or tax-advantaged bonds, notes, or other obligations, to obtain financing or refinancing for the Project, the Financing Participants acknowledge that the Project will be subject to restrictions on private business use under Section 141 of the Internal Revenue Code of 1986, as amended, and applicable IRS thereunder. Each of the Financing Participants agrees that it will not provide to nongovernmental persons special legal entitlements to use the Project under contractual arrangements providing preferential or exclusive right to use all or part of the Project without the written consent of the Capital Financing Member. A “nongovernmental person” means any person other than a State or local government unit, including the United States of America and any federal department or agency, an Indian tribal government not carrying out essential governmental functions, any nonprofit corporation (including any 501(c)(3) organization), any other private entity, such as a business corporation, partnership, limited liability company or association, and a natural person engaged in a trade or business activity. Another state or local government unit is not a nongovernmental person. Under current IRS regulations, some use arrangements with nongovernmental persons result in “private business use” and others do not. For example, private business use would result from: a lease with a term longer than two hundred (200) days (including renewal options); a management or service contract, such as a concession contract, that does not meet the “safe harbor” conditions of IRS Revenue Procedure 2017-13; or a “naming rights” contract with a corporate sponsor whose value (measured by the present value of the corporate sponsor’s payments to the issuer under the contract) exceeds ten percent (10%) of the cost of the bond-financed property. Other use arrangements with nongovernmental persons would not result in private business use, such as: an arrangement that is not available to the general public at generally applicable and uniformly applied rates but whose term of use is not longer than one hundred (100) days (including renewal options); a specially negotiated, arm’s-length contract whose term of use is not longer than fifty (50) days and requires fair market value payment for use, such as contracts with special event sponsors; or a management or service contract that meets the “safe harbor” conditions of IRS Revenue Procedure 2017-13. All private business uses of bond-financed property must be aggregated to determine the total amount of private business use that must be taken into account under the federal tax law restriction that no more than ten percent (10%) of the proceeds of a tax- exempt bond issue (including the Project being refinanced with the issue) may be used for any “related” private business use, which restriction is reduced to five percent (5%) for any “unrelated” private business use. If the Financing Participants would like to obtain the Capital Financing Member’s consent to “private business use” of the Project, they must inform the Capital Financing Member in writing (addressed by mail and email to the Mayor and Finance Director of the Capital Financing Member) as to the proposed “private business use.” The Capital Financing Member shall consult with its bond counsel as to whether such “private business use” will impact the tax-exempt status of any bonds issued to finance or refinance the Project. The Capital Financing Member shall provide written notice to the Financing Participants of the Capital Financing Member’s bond counsel’s conclusion within thirty (30) days of receiving the request. If the Capital Financing Member’s bond counsel concludes that the “private business use” will adversely impact the tax-exempt status Page 251 of 258 5 of such financing or refinancing, the Financing Participants shall not allow such “private business use.” Section 3. Ownership of the Project 3.1 Ownership Interests. The 800MHz Radio System identified in this Financial Agreement shall be owned in equal shares of one-fifth (20%) by the following member agencies: Benton County, Franklin County, and the cities of Kennewick, Richland, and Pasco. Ownership is governed by the Interlocal Agreement. No non-participating members have an ownership interest. Section 4. Miscellaneous. 4.1. Interlocal Agreement. The Capital Financing Member and the Financing Participants agree: (a) This Financing Agreement is intended to supplement the BCES Interlocal Agreement only. It does not create any separate administrative entity within the meaning of RCW 39.34.030(3)(b) or a “joint board” within the meaning of RCW 39.34.030(4)(a). (b) The Designated Representative of each Financing Participant is appointed as the “administrator” within the meaning of RCW 39.34.030(4)(a) responsible for administering the Financing Participant’s rights and duties set forth in this Financing Agreement; and (c) The parties will file or post this Financing Agreement as required by RCW 39.34.040. 4.2. Governing Law. This Financing Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If any dispute arises between the Financing Participants under any of the provisions of this Financing Agreement, resolution of that dispute shall be available only through the jurisdiction, venue and rules of the Benton County Superior Court, Benton County, Washington. 4.3. No Waiver of Breach. The failure of any party hereto to insist upon strict performance of any provision of this Financing Agreement or to exercise any right based upon a breach thereof or the acceptance of any performance during such breach shall not constitute a waiver of any right hereunder. 4.4. Compliance with all Laws. The Capital Financing Member and the Financing Participants shall comply with all federal, state and local laws, rules, regulations, resolutions and ordinances applicable to the performance of this Financing Agreement. 4.5. Continuation of Performance. In the event that any dispute or conflict arises among the parties hereto while this Financing Agreement is in effect, the parties hereto agree that, notwithstanding such dispute or conflict, they shall continue to make a good faith effort to cooperate and continue work toward successful completion of assigned duties and responsibilities. Page 252 of 258 6 4.6. Severability. If any part, paragraph, section or provision of this Financing Agreement is adjudged to be invalid by any court of competent jurisdiction such adjudication shall not affect the validity of any remaining section, part or provision of this Financing Agreement. 4.7. Effective Date; Supplemental Nature. This Financing Agreement shall become effective on the date of the last signing party, (the “Effective Date”) and shall be deemed a supplement to the BCES Interlocal Agreement. Section 5. Execution and Amendment. 5.1. Form of Execution. This Financing Agreement shall be executed on behalf of each party hereto by its Designated Representative, or other authorized officer, and pursuant to an appropriate motion, resolution or ordinance of such party. 5.2 Amendments. This Financing Agreement may not be effectively amended, changed, modified or altered, except by an instrument in writing duly executed by the Designated Representative, or other authorized officer, of each party hereto and pursuant to an appropriate motion, resolution or ordinance of such party. Notwithstanding the foregoing, so long as any Bonds issued for the Project by the Capital Financing Member are outstanding, any such amendment shall not be permitted if, in the opinion of the Capital Financing Member and its counsel, it materially adversely affects the owners of the Bonds or affects the tax-exempt status of the interest paid on the Bonds. 5.3 Execution in Counterparts. This Financing Agreement may be executed in any number of counterparts, each of which shall be an original, but those counterparts will constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Financing Agreement as of the day and year first written above. [Signature pages to follow] Page 253 of 258 7 CITY OF RICHLAND, WASHINGTON as CAPITAL FINANCING MEMBER By Jon Amundson, ICMA-CM, City Manager Attest: ______________________________ Jennifer Rogers, City Clerk Approved as to form: ______________________________ Heather Kintzley, City Attorney CITY OF KENNEWICK, WASHINGTON as FINANCING PARTICIPANT By Erin Erdman, City Manager Attest: ______________________________ Krystal Townsend, City Clerk Approved as to form: ______________________________ Laurencio Sanguino, City Attorney [Signatures continue below] Page 254 of 258 8 CITY OF PASCO, WASHINGTON as FINANCING PARTICIPANT By Adam Lincoln, City Manager Attest: ______________________________ Debby Barham, City Clerk Approved as to form: ______________________________ Eric Ferguson, City Attorney COUNTY OF BENTON, WASHINGTON as FINANCING PARTICIPANT By Jerome Delvin, Chair Date Benton County Commission Attest: By _________________________________ Michael Alvarez, Pro Tem Date Benton County Commission _____________________________ Clerk of the Board By _________________________________ William McKay, Member Date Approved as to form: ______________________________ Jeff Aultman, Chief Deputy Prosecuting Attorney, Civil [Signatures continue below] Page 255 of 258 9 COUNTY OF FRANKIN, WASHINGTON as FINANCING PARTICIPANT By Rocky Mullen, Chair Date Franklin County Commission Attest: By _________________________________ Clint Didier, Pro Tem Date Franklin County Commission _____________________________ Clerk of the Board By _________________________________ Steve Bauman, Member Date Franklin County Commission Approved as to form: ______________________________ Jeff Briggs, Franklin County Chief Civil Deputy Prosecutor Page 256 of 258 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 257 of 258 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 258 of 258