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HomeMy WebLinkAbout2025.01.27 Council Workshop Packet AGENDA City Council Workshop Meeting 7:15 PM - Monday, January 27, 2025 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 workshop. The Pasco City Council Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. To listen to the meeting via phone, call 1-332-249-0718 and use access code 965 261 523#. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. VERBAL REPORTS FROM COUNCILMEMBERS 5. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC COMMENT – the public may comment on each topic scheduled for discussion, up to 2 minutes per person with a total of 8 minutes per item. If opposing sides wish to speak, then both sides receive an equal amount of time to speak or up to 4 minutes each side. 3 - 13 (a) Presentation - Columbia Ability Alliance (10 minutes) Presentation from Columbia Ability Alliance - Michael Novakovich, President & CEO 14 - 36 (b) Development Fees Review Page 1 of 91 37 - 38 (c) Monthly Update: Transportation Impact Fee Study (2 minutes) 39 - 59 (d) Resolution - Change Order No. 6 PWRF Phase 2 Construction Contract with Tapani (5 minutes) 60 - 71 (e) Resolution - Acceptance of Work for Road 36 Golf Course Irrigation Line Extension (5 minutes) 72 - 89 (f) Resolution - Lease Agreement with INATIA Foundation for Use of City Facilities (5 minutes) 6. MISCELLANEOUS COUNCIL DISCUSSION 7. EXECUTIVE SESSION 8. ADJOURNMENT 9. ADDITIONAL NOTES 90 - 91 (a) Adopted Council Goals (Reference Only) (b) 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 2 of 91 AGENDA REPORT FOR: City Council January 23, 2025 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/27/25 FROM: Adam Lincoln, City Manager City Manager SUBJECT: Presentation - Columbia Ability Alliance (10 minutes) I. ATTACHMENT(S): Columbia Ability Alliance Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation from Columbia Ability Alliance - Michael Novakovich, President & CEO III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Columbia Ability Alliance, formerly Columbia Industries started helping people in 1963 as the United Cerebral Palsy Association of Benton and Franklin Counties. Columbia Ability Alliance appreciates the opportunity to provide City Council with an update on their endeavors to build a more accessible and inclusive community as they work with individuals with disabilities and other life barriers to achieve employment and life success. Columbia Ability Alliance works with behavioral health and plans to operate the kitchen at the Columbia Valley Center for Recovery. The Alliance is currently working with Benton County to run their Opportunity Kitchen program in the recovery center to provide meals to residents and provide kitchen training and certification to residents when they are at the appropriate point of their recovery program. Page 3 of 91 The intent is to help build a healthier community by providing these individuals with appreciable skills to gain employment and stay drug-free. V. DISCUSSION: Michael Novakovich, President & CEO with Columbia Ability Alliance is providing a presentation to the City Council. Page 4 of 91 Pa g e 5 o f 9 1 Pa g e 6 o f 9 1 Pa g e 7 o f 9 1 Pa g e 8 o f 9 1 Pa g e 9 o f 9 1 Pa g e 1 0 o f 9 1 Pa g e 1 1 o f 9 1 Social Enterprise As a 501(c)(3) organization, public support and donations are essential. As a social enterprise, we generate critical mission support through the operation of successful commercial businesses. Pa g e 1 2 o f 9 1 900 S. Dayton Street Kennewick, WA 99336 509.582.4142 columbiaabilityalliance.com Pa g e 1 3 o f 9 1 AGENDA REPORT FOR: City Council January 24, 2025 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/27/25 FROM: Richa Sigdel, Deputy City Manager Community & Economic Development SUBJECT: Development Fees Review I. ATTACHMENT(S): Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: NA IV. HISTORY AND FACTS BRIEF: The City of Pasco, like many other municipalities charges different fees that are related to development of the community. For simplicity, major fees related to development can be categories to following: 1. Planning 2. Building Permit (within the building) 3. Impact Fees 4. Development Review (public infrastructure/non-building) As a part of development review assessment done by Elizabeth Garvin, City received feedback from our partners in the development community. There were of predictability threshold, SEPA several points pinch identified: development review fees, Traffic Impact Analysis, online application and the payments, and predictable project timelines. The feedback from development community has highlighted the burden of these unpredictable fees, with developers facing fluctuating costs during the review and approval processes. Page 14 of 91 Staff has consistently received feedback suggesting that adopting a fee transparency, provide could cities more to similar structure neighboring consistency, and ease of calculation for developers. These suggestions align with the need for improved cost recovery efficiency and a less administratively burdensome system. V. DISCUSSION: Feedback from the development community has largely focused on concerns related plan and reviews for specifically fees, Review Development to inspections of public infrastructure and non-building-related project elements. Another significant issue is the unpredictability of costs and delays associated with the Traffic Impact Analysis process; an issue that can only be resolved by updating our Transportation Impact fee, a project in progress. Currently, the City charges $90 for the first hour and $60 for each additional hour of staff time for development reviews and inspections. This fee structure creates uncertainty for developers, as the total cost remains unknown until the work is completed. Furthermore, is task the whether on vary can cost final the depending performed by a less experienced staff member or a highly experienced one. The billing process itself is time-consuming for City staff, requiring them to track project hours, prepare invoices, handle billing inquiries, and process payments. This non-value-added administrative burden detracts from more meaningful work of assisting our customers. In comparison to neighboring jurisdictions, Pasco’s building permit, impact fees, and utility connection fees are generally aligned. However, per Council’s goals, staff is working to ensure that fees remain current and sufficient for the coming years. Anticipated changes include increases to the Transportation Impact Fee, a reduction in School Impact Fees (with updates from the Pasco School District expected on April 14), and increases to utility connection fees. The attached PowerPoint provides a summary of the major fees and how they compare to neighboring cities. A comprehensive list of fees and comparisons is also included. Given the complexity and variety of development projects, fee comparisons with other jurisdictions are challenging due to differences in rate structures. Our primary focus is on development review fees, as they represent the most significant concern for our customers. The development community has administrative and delays, highlighted unpredictable consistently costs, burdens as major drawbacks of the current fee structure. These issues make financial lead unexpected to often for developers difficult planning and expenses and delays. When comparing Pasco’s fees with those of neighboring cities, such as Kennewick, offer it becomes clear that the other municipalities more Page 15 of 91 predictable fee structures. Kennewick's fee structure, which charges 3% of project costs for projects up to $1 million and 2% for costs exceeding $1 million (covering both review and inspection), is favored by developers for its simplicity and predictability. Staff anticipates that this approach will result in the collection of However, the in have we past. fees review development more than significant investment is needed in personnel, tools, and processes in this area. Staff is already working on process improvements, including online payment systems and applications, but additional staffing is required to meet customer needs effectively. Feedback from the development community emphasizes the importance of improving communication and project timelines. There is a clear need for staff positions dedicated to helping developers navigate the City's processes. State law restricts the use of revenue generated from development fees revenue to cover specific development-related costs. If additional materializes, reinvesting these funds into improving processes would be transformational for staff efficiency, morale, and customer service. Staff recommends adopting a fixed-cost fee structure similar to Kennewick’s, moving away from the current hourly fee model. This change would involve charging a one-time, upfront fee at the beginning of the review process, providing developers with more certainty and simplifying the fee structure. Page 16 of 91 January 27 th, 2025 Pasco City Council Workshop Pa g e 1 7 o f 9 1 CED – Development Fees January 27th, 2025 Pasco City Council Pa g e 1 8 o f 9 1 Fee Types Project Examples Focused Scope: Development Review (Public Infrastructure) 01 02 03 Pa g e 1 9 o f 9 1 Fee Types 4 Pa g e 2 0 o f 9 1 Building •Building Permit •State Fee •Plan Review Impact Fees •School •Park •Transportation Major Fee Types 5 Connection Fees •Sewer •Sewer Connection Inspection Fee •Area Charge •Sewer System Fees •Water •Meter Fee •Area Charge •Water System Fee Pa g e 2 1 o f 9 1 Planning •Binding Site Plan •SEPA •Boundary Line Adjustment •Short Plat •Final Plan •Planned Unit Development •Rezone Major Fee Types – Planning & Development 6 Development Fees •Public Infrastructure Inspection •Public Infrastructure Plan Review •Development Reimbursement Agreements Pa g e 2 2 o f 9 1 Project Examples 7 Pa g e 2 3 o f 9 1 Project information (Single Family): •Valuation: $306,978 •Size: 1586 Sq. Ft •Frontage: 74.86 •Depth: 105.01 Exercise – Building Permits, Impact Fees, Utility Connection Fees 8 Fees Pasco Kennewick Richland West Richland Permit Fees Building Permit Fees $2,152.95 $2,152.95 $2,152.95 $2,366.10 State Fee $6.50 $6.50 $6.50 $6.50 Plan Review Fees*$50 0 0 $1419.66 School Impact Fee $4,700 0 0 $0 Park Impact Fee**$1,908.06 $1,064.00 $1,680.00 $3,100.00 Traffic Impact Fee**$709.00 $1,621.00 $2,647.13 $0.00 Connection Fee - Water 3/4" Meter Fee $258.16 $0.00 $1,020.00 $660.00 Area Charge $305.01 $117.92 $1,122.90 $786.10 Water System Fees $360.00 $600.00 $2,100.00 $6,617.00 Connection Fee - Sewer Area Charge $367.90 $314.44 $2,245.80 $786.10 Sewer System Fees $1,288.00 $4,000.00 $2,995.00 $4,060.00 Sewer Connection/Inspection Fee $75.00 $100.00 $100.00 $85.00 TOTAL $12,180.58 $9,976.81 $16,070.28 $19,886.46 *Pasco, Kennewick and Richland either offers a reduced plan review fee or waives it entirely for single - family dwellings. The standard plan review fee is 65% of the building permit fee in Pasco, Kennewick, and Richland. **Kennewick and Richland have designated zones for their impact fees, with fees varying based on the project's location. For this comparison, Staff utilized area/district/zone 1 for each fee calculation. Pa g e 2 4 o f 9 1 Project information: •Valuation: $1,304,221 •Number of Lots: 76 •Number of Plan Sheets: 20 Exercise – Public Infrastructure (Development Review) 9 City of Pasco City of Kennewick City of Richland City of West Richland Hourly 5% project cost $1M and 3% over $1M includes both review and inspection $411 per sheet review & 3% project cost for inspection Tiered Dollar amount per lot (50+lots: $13,700+$200 per lot) & 5% project cost for inspection Hours Charge Fee Charge Fee Charge Fee Charge Plan Review: $90 First Hour & $60/hr after 47 $2,835.00 5% of $1,000,000 $50,000.00 Plan Review: 20 Plan Sheet $8,220.00 Plan Review: $3,200+$250 each lot $28,900.00 Inspection: $90 First Hour & $60/hr after 82 $4,920.00 3% of $304,221 $9,126.63 Inspection: 3% of project cost $39,126.63 Inspection: 5% of project cost $65,211.05 Total $7,755.00 Total $59,126.63 Total $47,346.63 Total $94,111.05 Per lot $102.04 Per lot $777.98 Per lot $622.98 Per lot $1,238.30 Pa g e 2 5 o f 9 1 Focused Scope: Public Infrastructure (Development Fees) 10 Pa g e 2 6 o f 9 1 Current Fees: •Public Infrastructure Inspection: $90 for the first hour, $60 for each additional hour •Public Infrastructure Plan Review: $90 for the first hour, $60 for each additional hour Public Infrastructure Fees 11 Drawbacks: •Unpredictable Costs for Developers •Inconsistent •Administrative Burden •Inefficiency in Cost Recovery Pa g e 2 7 o f 9 1 Alternative Fee Structures – Public Infrastructure 12 Type Information Examples Public Infrastructure Plan Review Fee Tiered System - Lots Fee is based on the number of lots in the project. Includes the first two reviews. West Richland: up to 8 lots: $400 9-50 lots: $3,200 + $250 each lot 50+: $13,700+$200 per lot Percentage Calculated as a percentage of the project’s construction value. The percentage may vary depending on the project cost. Includes the first two reviews. Kennewick: 5% of the construction cost for anything under $1M 3% for the portion of construction costs over $1M Plan Sheet Count Fee is charged per plan review sheet submitted. Applied for each submission. Richland Commercial Industrial: $111 per engineering plan sheet Subdivision: $411 per engineering plan sheet Public Infrastructure Inspection Fee percentage Calculated as a percentage of the project’s construction value. The percentage may vary or be a flat rate. Richland: 3% of the construction cost for anything under $1M and 2% for the portion of construction costs over $1M West Richland 5% of the total Cost of the Improvements, $500 minimum Combined with Plan Review Fee The inspection fee is included as part of the plan review fee, resulting in a single, consolidated fee. Kennewick: Included with their plan review fee which is a percentage of the cost of the project. Pa g e 2 8 o f 9 1 Recommendations 13 Pa g e 2 9 o f 9 1 Alternative Fee Structures – Public Infrastructure 14 Type Information Examples Public Infrastructure Plan Review Fee Tiered System - Lots Fee is based on the number of lots in the project. Includes the first two reviews. West Richland: up to 8 lots: $400 9-50 lots: $3,200 + $250 each lot 50+: $13,700+$200 per lot Percentage Calculated as a percentage of the project’s construction value. The percentage may vary depending on the project cost. Includes the first two reviews. Kennewick: 5% of the construction cost for anything under $1M 3% for the portion of construction costs over $1M Plan Sheet Count Fee is charged per plan review sheet submitted. Applied for each submission. Richland Commercial Industrial: $111 per engineering plan sheet Subdivision: $411 per engineering plan sheet Public Infrastructure Inspection Fee Percentage Calculated as a percentage of the project’s construction value. The percentage may vary or be a flat rate. Richland: 3% of the construction cost for anything under $1M and 2% for the portion of construction costs over $1M West Richland: 5% of the total Cost of the Improvements, $500 minimum Combined with Plan Review Fee The inspection fee is included as part of the plan review fee, resulting in a single, consolidated fee. Kennewick: Included with their plan review fee which is a percentage of the cost of the project. Pa g e 3 0 o f 9 1 •Based on feedback from development community •Most predictable •Revenues are restricted for development processes only by state law •Allows for additional investment to improve Pasco's processes Advantages of Change 15 Drawbacks: •Will increase development review fees Pa g e 3 1 o f 9 1 Pa g e 3 2 o f 9 1 Fee Type Fee Fee Pricing inclusions Fee Pricing inclusions Fee Pricing inclusions Public Infrastructure Inspection $90/hr. First Hour and $60/hr. after Included in the Public Infrastructure Plan review fee Included in the Public Infrastructure Plan review fee 3% of the construction cost for anything under $1M and 2% for the portion of construction costs over $1M Administrative and Inspection costs 5% of the total Cost of the Improvements, $500 minimum The fee is to cover actual costs incurred by the city. If the cost to the city exceeds the amount of the fees paid, the developer shall pay an additional fee before final approval of the plat improvements; Public Infrastructure Plan review $90/hr. First Hour and $60/hr. after 5% of the construction cost for anything under $1M and 3%for the portion of construction costs over $1M Covers the administrative, plan review(2 submittals) and inspection costs Commercial Industrial: $111 per engineering plan sheet | Subdivision: $411 per engineering plan sheet The plan review fee shall apply each time a project is submitted for review. Tiered approach: up to 8 lots: $400, 9-50: 3,200+$250 each lot, 50+: $13,700+$200 per lot (Includes first 2 reviews) The fee is to cover actual costs incurred by the city; any deficiency shall be paid prior to the public works director or his/her designee approving the improvement plans and specifications for a final plat; Public Infrastructure Additional reviews $90/hr. First Hour and $60/hr. after Plan reviews after the second submittal will be charged an additional one percent of project costs for each subsequent submittal. Plan reviews after the second submittal 20% of the initial plat improvement Plan Review Fee For Each Additional Review Beyond the First Two Reviews 1st hour rate Hours Charge Fee Charge Fee Charge Fee Charge Plan Review: $90 First Hour & $60/hr. after 47 $ 2,835.00 5% of $1,000,000 $ 50,000.00 Plan Review: 20 Plan Sheet $ 8,220.00 Plan Review: $3,200+$250 each lot $ 28,900.00 Plan Review: $90 First Hour & $60/hr. after 82 $ 4,920.00 3% of $304,221 $ 9,126.63 Inspection: 3% of project cost $ 39,126.63 Inspection: 5% of project cost $ 65,211.05 Total $ 7,755.00 Total $ 59,126.63 Total $ 47,346.63 Total $ 94,111.05 $ 102.04 $ 777.98 $ 622.98 $ 1,238.30 Project Const. Cost Estimate 1,304,221.00$ Improvement Number of Plan Sheets Number of Lots Survey per lot Erosion Control 6" 8" 12" 20 76 76 1 150 2229 1030 Value 411.00$ 50.00$ 2,000.00$ 20.00$ 26.00$ 45.00$ 8,220.00$ -$ 3,800.00$ 2,000.00$ 3,000.00$ 57,954.00$ 46,350.00$ Domestic Water 2" Valve 6" Valve 8" Valve 12" Valve 16" Valve 1" Service 2" Service Hydrant 8" 4" Service 5 7 6 5 1 79 1 7 2393 70 550.00$ 725.00$ 1,000.00$ 1,500.00$ 1,750.00$ 870.00$ 1,000.00$ 3,500.00$ 30.00$ 450.00$ 2,750.00$ 5,075.00$ 6,000.00$ 7,500.00$ 1,750.00$ 68,730.00$ 1,000.00$ 24,500.00$ 71,790.00$ 31,500.00$ Sewer Irrigation Deep MH's 8" 16" 2" Valve 6" Valve 8" Valve 16" Valve 1" Service 2" Service 12" Perf 1836 1415 5 6 2 80 1 865 25.00$ 55.00$ 550.00$ 725.00$ 1,000.00$ 1,750.00$ 870.00$ 1,000.00$ 36.00$ -$ 45,900.00$ 77,825.00$ 2,750.00$ -$ 6,000.00$ 3,500.00$ 69,600.00$ 1,000.00$ 31,140.00$ Storm Type s CB Stop Sign Street Name Sign Other Sign Street Lights HC Ramps Sidewalks Curb and Gutter HMA Total Infrastructure 23 9 18 8 12 24 590 6053 2103 1,200.00$ 200.00$ 200.00$ 200.00$ 4,000.00$ 500.00$ 15.00$ 9.00$ 70.00$ 27,600.00$ 1,800.00$ 3,600.00$ 1,600.00$ 48,000.00$ 12,000.00$ 8,850.00$ 54,477.00$ 147,210.00$ 934,221.00$ Neighboring Cities Public Infrastructure fees Project information Project Cost Breakdown Project Construction Cost Breakdown Hypothetical Public Infrastructure Estimation Exercise How to Calculate City of Richland City of West Richland 5% project cost $1M and 3% over $1M includes both review and inspectionHourly Tiered Dollar amount per lot (50+lots: $13,700+$200 per lot) & 5% project cost for inspection$411 per sheet review and 3% project cost inspection City of Pasco City of Kennewick City of Richland City of West Richland Same as public infrastructure plan review fee Pricing inclusions City of Pasco City of Kennewick Cost recovery of engineering staff time Cost recovery of engineering staff time Cost recovery of engineering staff time Pa g e 3 3 o f 9 1 Fee City of Richland Type Fee/Charge Sewer tap and inspection (in/out City) $75.00 Square Footage (per sq. ft.): *waived if lines are installed by developer $0.0468 Front footage (per foot): $25.00 Inside City-Homes (per unit) $1,288.00 Inside City - Hotel/motel (per unit) $524.00 Water Meter Size Property Inside City Limits Property Outside City Limits Area Charge (per sq ft.) Outside City - Homes (per unit) 50% surcharge 3/4" $4,000 $6,000 $0.04 1" $4,000 $6,000 $0.04 1 1/2" $5,000 $8,250 $0.04 3/4-inch meter $1,288.00 2" $6,300 $9,450 $0.04 Water Meter Size Property Inside City Limits Property outside City Limits 1-inch meter $1,936.00 3" $12,500 $18,375 $0.04 3/4" $4,060 $6,090 1-1/2-inch meter $4,517.00 4" $17,500 $26,250 $0.04 1" $4,060 $6,090 2-inch meter $7,097.00 6" $32,500 $48,750 $0.04 1 1/2" $8,120 $12,180 3-inch meter $13,550.00 8" $50,500 $75,750 $0.04 2" $12,992 $19,488 4-inch meter $21,291.00 3" $24,360 $36,540 6-inch meter $43,226.00 4" $40,600 $60,900 8-inch meter $69,032.00 10-inch meter $98,927.00 Outside City limits 3/4 - 10-inch meter 50% surcharge Water tap application fee $150.00 Size of pipe & fee type Connection fee Front footage (per foot): Size of Pipe Service Charge Frontage Charge $/lin. ft. Area Charge $/sq. ft. 3/4" $600.00 $9.00 $0.015 Meter fee $1,020.00 In and out City limits $20.00 1" 700.00 9.00 0.015 Connection fee - Indoor & Non-Irrigation Users $2,100.00 1 1/2" 1,600.00 9.00 0.015 Connection fee - Outdoor Landscape, Irrigation, Car Washes $2,990.00 In and out City limits $25.00 2" 1,900.00 9.00 0.015 3" 5,400.00 9.00 0.015 Meter fee $1,045.00 4" 7,100.00 9.00 0.015 Connection fee - Indoor & Non-Irrigation Users $2,100.00 In and out City limits $0.0388 6" 8,800.00 9.00 0.015 Connection fee - Outdoor Landscape, Irrigation, Car Washes $2,900.00 In and out City limits $0.0426 Meter fee $2,750.00 Connection fee - Indoor & Non-Irrigation Users $6,993.00 Size of Pipe Service Charge Frontage Charge $/lin. ft. Area Charge $/sq. ft. Connection fee - Outdoor Landscape, Irrigation, Car Washes $9,957.00 3/4-inch meter $360.00 3/4" $800.00 $9.00 $0.015 1-inch meter $601.00 1" 900.00 9.00 0.015 Meter fee $3,585.00 1-1/2-inch meter $1,198 1 1/2" 1,800.00 9.00 0.015 Connection fee - Indoor & Non-Irrigation Users $11,193.00 2-inch meter $1,918 2" 2,100.00 9.00 0.015 Connection fee - Outdoor Landscape, Irrigation, Car Washes $15,937.00 3-inch meter $3,599 3" 5,600.00 9.00 0.015 4-inch meter $5,999 4" 7,300.00 9.00 0.015 Meter fee $2,600.00 Water Meter Size Property Inside City Limits Property outside City Limits 6-inch meter $11,995 6" 9,000.00 9.00 0.015 Connection fee - Indoor & Non-Irrigation Users $21,000.00 3/4" $6,418 $9,627 8-inch meter $19,192 Connection fee - Outdoor Landscape, Irrigation, Car Washes $29,900.00 1" $6,418 $9,627 10-inch meter $27,591 1 1/2" $12,836 $19,254 Outside City limits 3/4 - 10-inch meter 90% surcharge Meter fee $3,700.00 2" $20,538 $30,807 Connection fee - Indoor & Non-Irrigation Users By Contract 3" $38,508 $57,762 Connection fee - Outdoor Landscape, Irrigation, Car Washes By Contract 4" $64,180 $96,270 Sewer Connection Fees* Neighboring Cities Connection Fees Charges for services larger than four inches shall be based upon the actual cost of time and materials plus the established City overhead costs for services rendered. If the manhole and other related construction is accomplished by the owner, no tapping charge will be assessed. Hookup Charge: The hookup charge for connections from all property other than that described in subsection (1) of this Section shall be based upon the water meter size as follows: When a wye or a tee has previously been installed for the connecting property's side sewer and is used for the side sewer connection, the hookup charge shall be: When a public sewer system service tap is required for the connecting property's side sewer connection, the total charge shall be the sum of the appropriate service tap charge defined in subsection (1), side sewer charge defined in subsection (2), and the hookup charge defined in subsection (3), above. City of Pasco Sewer Development Fee: Single-family residential unit and each dwelling unit of a duplex inside city limits - $4,060 per dwelling unit City of Kennewick City of West Richland Sewer Mainline Tap Charge: When the property has participated in the construction costs of the sewer mainline to which it will be connecting, the tap fees shall be: Side Sewer Charge: When the property has participated in construction costs of the sewer mainline, and the costs are at least equal to the connection fees, the side sewer fees shall be: If a wye or tee installed and previously paid for by the property and used for the connection, no tap charge. If a wye or tee was not installed, $100.00 inside the City limits and $150.00 outside the City limits. Four-inch side sewer installed and previously paid for by the property and used for the connection, no charge. For a 2-inch meter: $5,475 for the meter and service connection; provided, that in the event the City's only requirement is to insert a meter into a properly constructed meter box, the fee shall be $1,235. The aforementioned hookup fees exclude the cost of asphalt pavement, concrete curb and gutter, landscaping and sidewalk restoration. A fee for restoration shall be in addition to the hook up fee. Sewer Connection Fee - Water Meter Size 4" By Contract Sewer Connection Fee - Water Meter Size 3" $29,950.00 The number of square feet of property by the sewer system to a maximum of 108,900 square feet (2.5 acres), as determined by the Public Works Director, is multiplied by $0.10 per square foot with the total area charge not to exceed $10,890 for a gravity sewer line. The number of square feet of property by the sewer system to a maximum of 108,900 square feet (2.5 acres), as determined by the Public Works Director, is multiplied by $0.02 per square foot with the total area charge not to exceed $2,178 for a pressure sewer line. The lineal feet of property adjacent to and fronting the existing or proposed gravity sewer line to a maximum of 330 linear feet, as determined by the Public Works Director, is multiplied by $37.00 per foot with the total linear charge not to exceed $12,200. The lineal feet of property adjacent to and fronting the existing or proposed pressure sewer line to a maximum of 330 linear feet, as determined by the Public Works Director, is multiplied by $22.00 per foot with the total linear charge not to exceed $7,260. Sewer Line Development Fee: The Sewer line development fee imposed herein for a parcel of property is computed as the sum of the following front foot charge and area charge Four-inch side sewer previously installed, but not paid for, $15.00 per linear foot inside the City limits and $22.50 per linear foot for property outside the City limits. Capital expansion Residential: Inside City (based on water meter size): Fee for Inspection of New Sewer Service for Users Discharging - $60 Single-family residential unit and each dwelling unit of a duplex outside the city limits - $6,090 per dwelling unit Per Foot Frontage Fee - 6" Meter By Contract Per Foot Frontage Fee - Meters 3/4" to 4" $30.00 Sewer Connection Fee - Water Meter Size 1" $2,995.00 Sewer Connection Fee - Water Meter Size 3/4" $2,995.00 Sewer Connection Fee - Water Meter Size 1 1/2" $9,973.00 Water Connection Fees* Commercial: Water system capital expansion/replacement charges Prior approval of construction plans for preliminary plat, or approval of a short plat of binding site plan, the owner and/or developer shall pay a portion of the sewer system development fee - $1,260 per lot The sewer system development fee for all other users discharging domestic strength sewage not listed above shall be based on the size of water services as shown in the table below Greater than 4" To be Determined To be Determined New Service Connection Charges. The following amounts for labor, overhead, and materials shall be full payment for original installation and maintenance for property within the City limits: For a 3/4-inch meter or 1-inch meter: $2,500 for the service connection; provided, that in the event the City's only requirement is to insert a meter into a properly constructed meter box, the fee shall be $575.00. The 3/4-inch meter will be issued only with the approval of the Public Works Director. The aforementioned hookup fee exclude the cost of asphalt pavement concrete curb and gutter, landscaping and sidewalk restoration. A fee for restoration shall be in addition to the hookup fee. For a 1 1/2-inch meter: $4,690 for the meter and service connection; provided, that in the event the City's only requirement is to insert a meter into a properly constructed meter box, the fee shall be $1,060.00. The aforementioned hookup fees exclude the cost of asphalts pavement, concrete curb and gutter, landscaping and sidewalk restoration. A fee for restoration shall be in addition to the hookup fee. Sewer Connection Fee - Water Meter Size 2" $15,963.00 Sewer Connection Fee - Water Meter Size 6" By Contract 3/4" 1" 1 1/2" 3" 2" For new service lines located outside the City limits, the following amounts for labor, overhead, and materials shall be full payment for original installation and maintenance: 4" Residential: Commercial: Inside City limits: Residential: Commercial : Square Footage (per sq. ft.):For 3-inch meter or larger: the actual cost of making the connection, including labor, materials, meter, valve fittings and other appurtenances and a fee for restoration of asphalt pavement, concrete curb and gutter, sidewalk and landscaping. Water System Development Fee for a Single-Family Residential Unit and Each Dwelling unit of a Duplex Inside City Limits - $6,18 Per Dwelling Unit Water System Development fee for a Single-Family Residential Unit and Each Dwelling unit of a Duplex Outside City Limits - $9,627 Per Dwelling Unit Water system development fee shall be reduced by $2,635 for parties City potable water for irrigation purposes. Prior to approval of the construction plans for a preliminary plat, or approval of a short plat or binding site plan, the owner and/pr developer shall pay $1,350 per lot portion of the Water system development fee. Water System development fee for all other users not listed in subsection C shall be based on the size of the water meter service. Fee area reflected in the table below. Except for a second water service for "irrigation use only", owner/developer shall only be required to pay Water connection hookup fee and new account service fee for the "irrigation only" water service. Second water service to be the same size or smaller than primary water service for exception to apply. Pa g e 3 4 o f 9 1 Fee City of Richland Neighboring Cities Connection Fees City of Pasco City of Kennewick City of West Richland Greater than 4" To be Determined To be Determined Meter fee $4,900.00 Connection fee - Indoor & Non-Irrigation Users By Contract Connection fee - Outdoor Landscape, Irrigation, Car Washes By Contract $15.00 Per Foot Frontage Fee - 6" Meter By Contract *Some cities may waive or adjust fees based on specific agreements or conditions. Water Line Development Fee: The waterline development fee imposed herein for a parcel of property is computed as: When it is desired by a property owner and in any case requisite to having a city water service installed to serve a parcel(s) of land, a fee, as set forth in Chapter 3.35 PMC, shall be paid to the Director of Finance based on the amounts for the following: The water line development fee imposed herein for parcel of property is computed as: The lineal feet of property adjacent to and fronting the existing or proposed water line to a maximum of 330 linear feet, The number of square feet of property to be served by the water system to a maximum of, 108,900 square feet (2.5 acres) as determined by the Public Works Director, is multiplied by $0.02 per square foot with the total area charge not to exceed $2,178. Prior to granting a permit for water distribution work on public rights of way to be done by private contract, the permittee must provide all necessary surveys, grades, engineering design data, plans, specifications, estimate of quantities, and, subsequent to issuance of the permit, all necessary construction staking, all of which must be certified by a registered engineer or surveyor. The City may do the work for an appropriate fee. The contractor must notify the Deputy Director of Public Works in writing at least 24 hours before commencing construction. The Deputy Director of Public Works will check the work during construction and no work may commence until the grades and alignment have been checked and an inspector is present. No phase of construction may commence if it obscures any phase of construction before the prior has been adequately inspected, and the contractor must remove at his own expense any such construction if directed by the Deputy Director of Public Works. All work must be inspected prior to backfilling. The service line from the water main up to and including a curb stop at the point of delivery shall be installed by the developer/contractor. In areas where the water main is installed by the customer, the service line shall be installed to the department’s specifications and the department will maintain the service line from the main up to and including a curb stop at the point of delivery. For other situations, upon approval of the application by the department and payment of the appropriate installation fees, the department will install and maintain the connection on the water main in a right-of-way or easement, and the service line from this connection up to and including the point of delivery. Connection to existing lines* Residential Charges: A charge for each front foot of the parcel(s) of property served, plus a charge for each square foot of the parcel(s) of property served. 6" The lineal feet of property adjacent to and fronting the existing or proposed water line to a maximum of 330 linear feet, as determined by the Public Works Director, is multiplied by $52.00 per foot with the total linear footage charge not to exceed $17,160. The number of square feet of property to be served by the water system to a maximum of, 108,900 square feet (2.5 acres) as determined by the Public Works Director, is multiplied by $0.10 per square foot with the total area charge not to exceed $10,890. Pa g e 3 5 o f 9 1 Fee Total Valuation Fee Total Valuation Fee Total Valuation Fee Total Valuation Fee $1.00 to $10,000 $50.00 $1.00-$500 $23.50 $1.00-$500 $23.50 $1.00 to $500 $25.85 $10,001 to $25,000 $195.25 for $10,0001 - $11,000 + $14.00 for each add’l $1,000 $501.00 to $2,000 $25.85 for the first $500 plus $3.05 for each additional $100 $501 to $2,000 $25.85 for the first $500 plus $3.05 for each additional $100 $501 to $2,000 $25.85 for the first $500 plus $3.35 for each additional $100, or fraction thereof, to and including $2,000 $25,001 to $50,000 $391.75 for the first $25,000 + $10.10 for each add’l $1,000, or fraction thereof $2,001 to $25,000 $69.25 for the first $2,000.00 plus $14.00 for each additional $1,000 $2,001 to $25,000 $69.25 for the first $2,000 plus $14.00 for each additional $1,000 $2,001 to $25,000 $76.10 for the first $2,000 plus $15.40 for each additional $1,000, or fraction thereof, to and including $25,000 $50,001 to $100,000 $643.75 for the first $50,000 + $7.00 for each add’l $1,000, or fraction thereof $25,001 to $50,000 $391.25 for the first $25,000 plus $10.10 for each additional $1,000 $25,001 to $50,000 $391.25 for the first $25,000 plus $10.10 for each additional $1,000 $25,001 to $50,000 $430.30 for the first $25,000 plus $11.11 for each additional $1,000, or fraction thereof, to and including $50,000 $100,001 to $500,000 $993.75 for the first $100,000 + $5.60 for each add’l $1,000, or fraction thereof $50,0001 to $100,000 $643.75 for the first $50,000 plus $7.00 for each additional $1,000 $50,0001 to $100,000 $643.75 for the first $50,000 plus $7.00 for each additional $1,000 $50,0001 to $100,000 $708.05 for the first $50,000 plus $7.70 for each additional $1,000, or fraction thereof, to and including $100,000 $500,001 to $1,000,000 $3,233.75 for the first $500,000 + $4.75 for each add’l $1,000 or fraction thereof $100,001 to $500,000 $993.75 for the first $100,000 plus $5.60 for each additional $1,000 $100,001 to $500,000 $993.75 for the first $100,000 plus $5.60 for each additional $1,000 $100,001 to $500,000 $1,093.05 for the first $100,000 plus $6.15 for each additional $1,000, or fraction thereof, to and including $500,000 $500,001 to $1,000,000 $3233.75 for the first $500,000 plus $4.75 for each additional $1,000 $500,001 to $1,000,000 $3233.75 for the first $500,000 plus $4.75 for each additional $1,000 $500,001 to $1,000,000 $3,553.05 for the first $500,000 plus $5.25 for each additional $1,000, or fraction thereof, to and including $1,000,000 $1,000,000 and up $5608.75 for the first $1,000,000 plus $3.65 for each additional $1,000 $1,000,000 and up $5608.75 for the first $1,000,000 plus $3.65 for each additional $1,000 $1,000,000 and up $6,178.05 for the first $1,000,000 plus $3.50 for each additional $1,000, or fraction thereof. Fee Notes Fee Notes Fee Notes Fee Notes $2,152.95 $2,152.95 $2,152.95 2366.1 $50.00 $0.00 $0.00 $1,419.66 $6.50 $6.50 $6.50 $6.50 $1,908.06 $1,064.00 Service Area 1 $1,680.00 $3,100.00 $709.00 $1,621.00 District 1 - Southridge Area $2,647.13 Traffic Impact Zone 1 $0.00 Authorized to have Transportation Impact fees but not included in their Master Fe Schedule. $4,700.00 $0.00 No School Impact fee $0.00 No School Impact fee $0.00 No School Impact fee $9,526.51 $4,844.45 $6,486.58 $6,892.26 $258.16 $0.00 $1,020.00 $660.00 Area Charge $305.01 $0.0388/sq ft. $117.92 $0.015/sq ft. $1,122.90 $15 Per foot frontage fee $786.10 $0.10/sq ft. W System Fees - 3/4 inch $360.00 $600.00 $2,100.00 $6,617.00 Area Charge $367.90 0.0468/sq ft.$314.44 $0.04/sq ft. $2,245.80 $30 Per foot frontage fee Cou $0.10/sq ft. S System Fees $1,288.00 $4,000.00 $2,995.00 $4,060.00 Sewer Connection Inpection Fee $75.00 $100.00 sewer "tap" connection fee for in city $100.00 sewer "tap" connection fee for in city $85.00 DPWTOTAL $2,654.07 $5,132.36 $9,583.70 $12,208.10 Total Cost $12,180.58 $9,976.81 $16,070.28 $19,100.36 Size 1586 Valuation $306,978.46 Frontage: 74.86 Depth: 105.01 Neighboring Cities Building Permit Fees Permit Fees Plan Review Fee City of West RichlandCity of RichlandCity of KennewickCity of Pasco $1,000,001 and up $5,608.75 for the first $1,000,000 + $3.65 for each add’l $1,000 or fraction thereof Building Permit Fee Comparison - Single Family Dwelling Fees Pasco Kennewick Richland West Richland State Fee Park impact fee Traffic impact fee School Impact Fee , Building Total DPW Fees 3/4" meter fee Water - New Service - Residential Sewer - New Service - Residential Pa g e 3 6 o f 9 1 AGENDA REPORT FOR: City Council December 6, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/27/25 FROM: Richa Sigdel, Deputy City Manager Community & Economic Development SUBJECT: Monthly Update: Transportation Impact Fee Study (2 minutes) I. ATTACHMENT(S): Not Applicable II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Not Applicable IV. HISTORY AND FACTS BRIEF: The purpose of the study is to assess the financial impact of new developments on City of Pasco’s (City's) transportation infrastructure. Transportation Impact Fees ensures that the City has adequate transportation facilities to serve new growth and development. The City has recently relied on proportionate shares to fund critical transportation projects, and this study is part of a long-term strategy to create a more sustainable growth model for the City’s transportation network. The City's current Traffic Impact Fee (TIF) applies to all development west of 20th Avenue. This fee was implemented in March, 2005 and then updated in February, 2009. The impact fee has not been updated since 2009, creating challenges for the City to construct adequate transportation infrastructure. Since its inception, the City has collected close to $6 million in traffic impact fees. Traffic Impact Fees are: Residential developments $709.00 Multifamily units $435.00 Commercial $43.00 per daily vehicle trip Page 37 of 91 The Traffic Impact Fee Study is being conducted by Fehr & Peers. Effort started in November, 2022 and stalled in November, 2023. The effort is being restarted now with the aim of completing the study and adopting recommendations by March, 2025. Below are some key tasks that need to be completed in this effort. 1. Review and update transportation project list - Derived from Transportation Improvement Plan (TIP) and Capital Improvement Plan (CIP) that has been created over six public outreaches and Council review and approval. 2. Confirm growth estimates - Update the commercial and industrial growth estimates that was done in 2022-2023 timeline. 3. Determine share of trips attributable to growth and further to specific TIF districts. 4. Calculate impact fee rate and update fee schedule 5. Outreach - Two (2) meetings with Developers, one (1) meeting with public at-large, and two (2) in-person Council meeting updates. Staff received Council guidance and approval on this proposed path forward. Staff has developed a potential project list based on the approved Transportation System Master Plan, Transportation Improvement Plan, and Capital Improvement Plan. Fehr & Peers has provided further review and input on the list. V. DISCUSSION: Staff will get input on the list from members of Council in early February. Once those inputs are incorporated, Fehr and Peers will start their outreach effort as mentioned above to receive feedback and provide information. Legal review will occur periodically to ensure that the methodology complies with the strict legal requirements for impact fees. Page 38 of 91 AGENDA REPORT FOR: City Council January 21, 2025 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/27/25 FROM: Maria Serra, Director Public Works SUBJECT: Resolution - Change Order No. 6 PWRF Phase 2 Construction Contract with Tapani (5 minutes) I. ATTACHMENT(S): Resolution Exhibit A - Change Order No. 6 Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Engineer's Construction Estimate $45,488,837.00 Awarded Construction Contract Amount $31,588,246.92 Previously Approved Change Orders No. 1-5 $899,638.78 Proposed Change Order No. 6 $148,290.62 New Contract Amount $32,636,176.32 The proposed Change Order can be accommodated within the project budget. The project is funded through a State Revolving Fund (SRF) low interest loan awarded by the Washington State Department of Ecology under agreement WQC-2024-Pasco-00091, which was authorized through adoption of Resolution No. 4425 on March 4, 2024. Total construction contract changes including proposed Change Order No. 6 represent approximately 3.32% of the original contract amount. Page 39 of 91 IV. HISTORY AND FACTS BRIEF: The construction contract for the Process Water Reuse Facility (PWRF) Phase 2 Winter Storage Improvements project was awarded to Tapani, Inc. on September 11, 2023. Construction is approximately 94% complete, with the Substantial Completion milestone anticipated to be complete in April 2025. Since construction began, five (5) Change Orders (COs) have been approved. The majority of the executed change order work included construction material substitutions in addition to electrical, mechanical and structural modifications required for fully functional installation to enhance future operation between existing and new facility components. Previously approved COs No. 2, No. 3, and No. 5 addressed these types of design modifications. Other previously approved changes, such as those addressed in COs No. 1 and No. 4, provided for addition of artificial owl burrows for site environmental mitigation barrier isolation electrical an (buried installation as well as of polyethylene encasement) for pond liner electronic leak detection testing. The noted modifications were intended to comply with federal funding and state regulatory requirements for the project. V. DISCUSSION: Change Proposal Requests (CPRs) were identified, reviewed, and packaged for approval into proposed CO No. 6 and are summarized as follows: 1. CPR 20 addresses the additional scope required to extend power and communications infrastructure to the new Effluent Splitter Box (ESB) structure. The Contract Drawings indicated an automated slide gate within the ESB, but electrical and communications were not included on the electrical plans. (Add of $5,982.44 w/o tax) 2. CPR 22 adds reinforced concrete landings for the stairs attached to the new pedestrian bridge abutments for the three new lagoons and the existing 123MG lagoon. This change addresses operational safety concerns with elevation of the bottom level of the stairs relative to the finished grade elevation. (Add of $16,910.04 w/o tax) 3. CPR 23 incorporates the negotiated costs for the additional excavation on the city acquired NorthEast USBR parcel (add $416,525.41) and for the negotiated credit for the material from the project site that was placed on the city acquired South USBR parcel (deduct $360,553). These grading and earthwork modifications are the result of reconciled quantities encountered during construction. (Add of $55,972.41 w/o tax) 4. CPR 24 incorporates additional negotiated costs for Tapani's assistance with the electronic leak detection testing of the new lagoon liner systems required by the state Department of Ecology. These costs include labor, Page 40 of 91 equipment, and water supply for a three month duration while the testing was being performed. (Add of $58,314.22 w/o tax) 5. Tax (Add of $11,111.51) These itemized changes will constitute a sixth change order to the project in the amount of $148,290.62 with no additional working days added to the original contract time. The amount of CO No. 6 exceeds the Public Works Director approval authority. City Staff recommends approval of CO No. 6 in the amount of $148,290.62 for the PWRF - Phase 2 Winter Storage Improvements project. Page 41 of 91 Resolution - CO No. 6 for PWRF Phase 2 - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 6 WITH TAPANI, INC. FOR THE PROCESS WATER REUSE FACILITY PHASE 2 WINTER STORAGE IMPROVEMENTS PROJECT. WHEREAS, the City of Pasco (City) and Tapani, Inc. (Tapani) entered into a Construction Contract on September 11, 2023, for construction of the Process Water Reuse Facility (PWRF) Phase 2 Improvements; and WHEREAS, previously approved Change Order No. 1 was under the authority provided to the Public Works Director; and WHEREAS, previously approved Change Order No. 2 was under the authority provided to the City Manager via Council adoption of Resolution No. 4433 on March 18, 2024; and WHEREAS, previously approved Change Order No. 3 was under the authority provided to the City Manager via Council adoption of Resolution No. 4441 on April 15, 2024; and WHEREAS, previously approved Change Order No. 4 was under the authority provided to the City Manager and Public Works Director; and WHEREAS, previously approved Change Order No. 5 was under the authority provided to the City Manager via Council adoption of Resolution No. 4493 on September 16, 2024; and WHEREAS, proposed Change Order No. 6 is issued to address both structural and electrical modifications necessary for a complete and functioning installation of new infrastructure in addition to site grading revisions needed to expedite construction and reduce the impact to existing private farm property access roads; and WHEREAS, the $148,290.62 amount of Change Order No. 6 added to the cumulative sum of previously approved Change Orders, exceeds the City Manager’s authority, and thus determined to obtain Council approval; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City to enter into Change Order No. 6 with Tapani. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of Change Order No. 6 between the City of Pasco and Tapani, Inc. as attached hereto and incorporated herein as Exhibit A. Page 42 of 91 Resolution - CO No. 6 for PWRF Phase 2 - 2 Be It Further Resolved, that the City Manager of the City of Pasco, Washington is hereby authorized to execute said Change Order No. 6 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 _____________, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 43 of 91 Page 44 of 91 Page 45 of 91 Page 46 of 91 Page 47 of 91 Page 48 of 91 Page 49 of 91 Page 50 of 91 Page 51 of 91 Page 52 of 91 Page 53 of 91 January 27, 2025 Pasco City Council Workshop Meeting Pa g e 5 4 o f 9 1 PWRF Phase 2 – Change Order No. 6 January 27, 2025 Pasco City Council Pa g e 5 5 o f 9 1 PWRF Phase 2 Improvements Update 3 Construction Activities Approximately 94% complete as of December 2024 PRRC (Phase 3) facility connection tie-ins in progress Upcoming outlet structure work at existing 123 MG lagoon Anticipated completion in Q3 2025 Pa g e 5 6 o f 9 1 PWRF Phase 2 Construction Costs 4 CostContract Items $45,488,837.00Engineer’s Estimate $31,588,246.92Bid Award $899,638.78 (2.85%)Change Orders 1 though 5 $148,290.62 (+0.47%)Change Order No. 6 $32,636,176.32New Contract Amount Pa g e 5 7 o f 9 1 PWRF Phase 2 Change Order No. 6 5 The proposed Change Order No. 6 adds $148,290.62 (including sales tax) to the project and brings the total construction contract amount to $32,636,176.32. The proposed Change Proposal Requests (CPRs) line item within Change Order No. 6 are outlined below: CPR 20 – Power and Control to Second Gate at ESB (Add of $5,982.44 w/o tax) CPR 22 – Pedestrian Catwalk Stairs (Add of $16,910.04 w/o tax) CPR 23 – USBR Parcel Final Cut/Fill Quantities (Add of $55,972.41 w/o tax) CPR 24 – Electronic Leak Detection Assistance (Add of $58,314.22 w/o tax) Tax – (add of $11,111.51) Each CPR was verified as necessary additions and negotiated with the Contractor. They were found to be reasonable by both City Staff and the Consultant/Construction Management (CM) team. Staff recommends approval of Change Order No. 6. Pa g e 5 8 o f 9 1 Questions? Pa g e 5 9 o f 9 1 AGENDA REPORT FOR: City Council January 22, 2025 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/27/25 FROM: Maria Serra, Director Public Works SUBJECT: Resolution - Acceptance of Work for Road 36 Golf Course Irrigation Line Extension (5 minutes) I. ATTACHMENT(S): Resolution PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Total Payment to Big D's Construction of Tri-Cities, Inc.: $147,920.94. This project was funded through REET funds from the City of Pasco. IV. HISTORY AND FACTS BRIEF: Since the 1950's a City of Pasco Golf Course irrigation Line has cut across the Airport property from Road 36 to Argent Road. The Port of Pasco requested that the City of Pasco's Irrigation line be removed from the Airport Property and placed in the City Right of Way. The Road 36 Golf course Irrigation line Extension Project (No. 22421), construction contract was awarded to Big D's Construction of Tri-Cities, Inc. of Pasco, WA on January 18, 2024 in the amount of $166,050.72. The project is now complete and was constructed per project specifications. Final construction costs totaled $147,920.94 after credits for work item quantity changes and the approval of 2 Change Orders. Change Orders (CO) for the project included: CO No.1 $17,940.00: Additional pipe removal along Port of Pasco Property outside of the fenced area of the airport. (Addition) Page 60 of 91 CO No. 2 ($36,069.78): Reconciliation Change order covering credits and debits including a deduction for sales tax for work item quantity changes. (Deduction) The project is complete and the materials and workmanship meets the standards specified in the contract documents. Formal acceptance of public works projects is required by State law and starts the 45-day period within which an outside vendor, supplier or laborer would have an opportunity to file a claim against this project pursuant to RCW 60.28.011 (2). Upon completion of the 45-day lien filing period, retainage being held by the City may be released upon receipts of the following:  An affidavit of no liens  A release from the Department of Revenue that all taxes have been paid  A release from any claims from the Department of Labor and Industries, pursuant to RCW 60.28.051 V. DISCUSSION: Staff recommends approval of the proposed Resolution accepting the work performed by Big D's Construction of Tri-Cities, Inc. for the Construction of the Road 36 Golf Course irrigation Line Extension Project. Page 61 of 91 Resolution – Rd 36 Irrigation Line Ext. Project Acceptance- 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY BIG D’S CONSTRUCTION OF TRI- CITIES, INC., UNDER CONTRACT FOR THE ROAD 36 IRRIGATION LINE EXTENSION PROJECT. WHEREAS, the work performed by Big D’s Construction of Tri-Cities, Inc., under contract for Project No. 22421 has been examined by City of Pasco (City) Staff and been found to be in apparent compliance with the applicable project specifications and drawings; and WHEREAS, it is the City Staff’s recommendation that the City of Pasco formally accept the contractor's work and the project as complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council concurs with City Staff’s recommendation and thereby accepts the work performed by Big D’s Construction of Tri-Cities, Inc., under contract for Project No. 22421 as being completed in apparent compliance with the project specifications and drawings. Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance. Be It Further Resolved, that the final payment of retainage being withheld, pursuant to RCW 60.28.011, regulations and administrative process, shall be released upon apparent compliance with and satisfaction of applicable project specifications and verification thereof by Public Works Department staff and Finance Director. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 62 of 91 January 27, 2025 Pasco City Council Workshop Pa g e 6 3 o f 9 1 Acceptance of Construction – Road 36 Irrigation Line Extension Project # 22421 January 27, 2025 Pasco City Council Pa g e 6 4 o f 9 1 Project # 22421 Contract awarded on January 2023, to Big D’s Construction of Tri-Cities Inc. of Pasco WA for $166,050.72 Road 36 Irrigation Line Extension 3 Pa g e 6 5 o f 9 1 Before Road 36 Irrigation Line Adjustment 4 Pa g e 6 6 o f 9 1 In Progress Road 36 Irrigation Line Adjustment 5 Pa g e 6 7 o f 9 1 After Road 36 Irrigation Line Extension 6 Pa g e 6 8 o f 9 1 Road 36 Irrigation Line Extension 7 Pa g e 6 9 o f 9 1 Questions? 8 Pa g e 7 0 o f 9 1 Thank You!Pa g e 7 1 o f 9 1 AGENDA REPORT FOR: City Council January 22, 2025 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/27/25 FROM: Jesse Rice, Director Parks & Recreation SUBJECT: Resolution - Lease Agreement with INATIA Foundation for Use of City Facilities (5 minutes) I. ATTACHMENT(S): Resolution Lease Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: This lease will bring in a variable amount of revenue throughout its term. Lease rates have been determined based on prevailing market rate for Pasco, and the lease also requires lessee to pay Leasehold Excise Tax. Year Square Footage X Annual Rate Annual Rate Monthly Commencement Date - Feb. 03, 2025 142 sq. X $18 $2,556 $213.00 June 1, 2025 - May 31, 2026 142 sq. X $18.54 $2,632.68 $219.39 June 1, 2026 - May 31, 2027 142 sq. X $19.10 $2,712.20 $226.02 June 1, 2027 - May 31, 2028* 142 sq. X $19.67 $2,793.14 $232.76 June 1, 2028 - May 31, 2029* 142 sq. X $20.26 $2,876.92 $239.74 June 1, 2029 - May 31, 2030* 142 sq. X $20.87 $2,963.54 $246.96 IV. HISTORY AND FACTS BRIEF: In 2019, the Group Health Foundation (GHF) approached the Pasco Economic Development team about occupation of a downtown location to conduct its Page 72 of 91 non-profit mission in the area. A property search was conducted and it was found that the Pasco Downtown Post Office provided an optimal location for GHF. An agreement for improvements and occupation was made and GHF renovated their space within the post office to provided offices, ADA upgrades to passageways and restrooms, and mitigation of asbestos, all long-term improvements to this asset. The improvements provided totaled $75,000. As negotiated, under the proposed agreement lease rates will be discounted on a pro-rated basis for the lessee in order to provide a return on this capital investment of a city-owned facility. The lease agreement was approved by City Council in April 2022, and initial term of the lease runs until May 31, 2027, with three (3) one-year options for subsequent renewal provided adequate notice to the City is provided. V. DISCUSSION: Since the initial lease, the Group Health Foundation (GHF) has been renamed INITIA Foundation. The INITIA Foundation has completed the required improvements in the original lease and has requested to lease additional space at the same facility to be used for storage purposes. Staff worked with the City's Real Estate representative to to verify current market rates for the request storage area to determined the Lease rate structure and aligned the lease terms to the current lease expiration and optional renewals. Per RCW 35A.11.110 leases of city property must be approved through resolution of the City Council. Staff recommends approval of the proposed lease agreement. Page 73 of 91 Resolution – Lease Arg for Storage at Post Office - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A 28-MONTH LEASE AGREEMENT BETWEEN INATIA FOUNDATION AND THE CITY OF PASCO FOR STORAGE SPACE AT 403 W. LEWIS ST, PASCO, WA. WHEREAS, the City of Pasco (City) in 2021 entered into a Lease Agreement with Group Health Foundation, now named INATIA Foundation, for Office Space at 403 W. Lewis, with the first Lease term through May 31, 2027; and WHEREAS, the INATIA Foundation has expressed need for additional operation storage space and requested to lease additional space at the current location; and WHEREAS, both the City and INATIA Foundation desire to enter this Lease Agreement for storage space at the Premises; and WHEREAS, this Lease Agreement will be co-termed with the current office space lease to include both original termination date and any optional renewal terms for Premises; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into the Lease Agreement with INATIA Foundation at the Premises. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the lease agreement between INATIA Foundation and the City of Pasco; a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, the City Manager of the City of Pasco, Washington is hereby authorized, empowered, and directed to sign and execute said Lease agreement on behalf of the City of Pasco; and to make minor substantive changes necessary to execute the Lease. Be It Further Resolved, that this Resolution shall take effect immediately. Page 74 of 91 Resolution – Lease Arg for Storage at Post Office - 2 PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 75 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 1 of 14 LEASE AGREEMENT Pasco Post Office - 403 W. Lewis St., Suite A, Pasco, WA 99301 Interior basement Storage - INATIA Foundation PARTIES. This Lease Agreement ("Lease") is made and entered into effective as of February 03, 2025 (the "Effective Date"), by and between the CITY OF PASCO, a municipal corporation ("City") and INATIA FOUNDATION, a Washington nonprofit corporation ("Lessee"). 1. PREMISES. The City hereby leases to Lessee that certain premises located in the Pasco Post Office (the "Building") located at 403 W. Lewis Street, Suite A, in the City of Pasco, County of Franklin, State of Washington, as legally described on Exhibit A attached hereto. The leased premises located on the basement floor, as depicted on Exhibit B attached hereto, consisting of approximately 142 square feet, more or less (referred to as the "Premises"), together with all improvements thereon and appurtenances thereto, including the nonexclusive right to use the Common Areas of the Building in common with others. The term "Common Areas" means all areas, facilities and building systems that are provided and designated from time to time by the City for the general non-exclusive use and convenience of Lessee with other lessees and which are not leased or held for the exclusive use of a particular lessee. The City grants to Lessee 24-hour a day ingress and egress to and from the Premises to adjoining public streets and the right to use in common with all other persons entitled to use the same all parking, public entrances, lobbies, hallways, stairways, elevators and other Common Areas. 2. TERM. This Lease shall be in full force and effect upon delivery of the Premises from the City to Lessee, in the Delivery Condition (as defined below) (the "Commencement Date"), which Commencement Date is agreed to be February 03, 2025, through May 31, 2027, unless terminated as provided herein (the "Original Term"). The Lessee shall have three (3) options to renew for one (1) year each (each, a "Renewal Term") upon full & faithful performance of terms & conditions of the Lease so long as Lessee provides the City written notice of its exercise of such option not less than three (3) months prior to the expiration date of the Original Term (or applicable Renewal Term). The terms and provisions for a Renewal Term shall be identical with the Original Term, except as to the rent, described below. The Original Term and each Renewal Term(s) are together known as the "Term". 3. RENT AND OTHER CHARGES. Rent shall be pro-rated for the first month should the Lease commence on any other day than the first day of the month. Subsequent monthly rent payments Page 76 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 2 of 14 shall be payable in advance, on or before the first day of each month of the Term. Rent shall be payable to the City without demand and without deduction, setoff or counterclaim. 3.1. Rent. Base Rent rates will be in the amounts stipulated as set forth below. Lessee shall pay a late service charge on all past due rent at the rate of five percent (5%) of the unpaid amount, but in no event higher than the legal limit. Increase in rent percentages are as shown below. Year Square footage X Annual Rate Annual Rate Monthly Rate Commencement Date - Feb 03, 2025 142 sq. ft. X $18 $2,556 $213.00 June 1, 2025 - May 31, 2026 142 sq. ft. X $18.54 $2,632.68 $219.39 June 1, 2026 - May 31, 2027 142 sq. ft. X $19.10 $2,712.20 $226.02 June 1, 2027-May 31, 2028* 142 sq. ft. X $19.67 $2,793.14 $232.76 June 1, 2028 - May 31, 2029* 142 sq. ft. X $20.26 $2,876.92 $239.74 June 1,2029-May31, 2030* 142 sq. ft. X $20.87 $2,963.54 $246.96 * Indicates Renewal Term 3.2. Leasehold Excise Tax. In addition to the monthly rent amount, Lessee shall also pay statutory Leasehold Excise Tax (currently 12.84%, or as otherwise increased/decreased by statute, of each monthly rent payment), which Excise Tax shall be paid to the City in the manner required in this Section 5 of this Lease by the first day of each month, upon Lessee's receipt of a statement of such Excise Tax amount due from the City. Initial tax amount will be determined by the City and shall increase as the base rent increases and/or as the statutory percentage changes. Year Base Rent per month Leasehold tax Total Monthly Rent Leasehold Excise Tax Commencement Date - Feb 03, 2025 $213 X 12.84% $27.35 $240.35 June 1, 2025 - May 31, 2026 $219.39 $28.17 $247.56 June 1, 2026 - May 31, 2027 $226.02 $29.02 $255.04 June 1, 2027-May 31, 2028* $232.76 $29.89 $262.65 June 1, 2028 - May 31, 2029* $239.74 $30.78 $270.52 June 1,2029-May31, 2030* $246.96 $31.71 $278.67 * Indicates Renewal Term Page 77 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 3 of 14 3.3. Security Deposit. 3.3.1. Upon execution of this Lease, Lessee shall deposit the sum equal to one (1) months' rent with the City as a security deposit. This sum shall guarantee Lessee's performance of its obligations hereunder. If Lessee fails to perform any of its obligations hereunder, the City may apply the appropriate portion of the security deposit to cure the default or to compensate the City for damage it has sustained as a result of Lessee's default. In the event that the City deems it necessary to use monies from the Security Deposit in order to secure Lessee's compliance with the provisions of this lease, the City shall provide Lessee written notice of the City's intent to apply monies from the deposit for such purpose. 3.3.2. If any portion of the deposit is so used, Lessee shall, within fifteen (15) days of demand, deposit sufficient cash with the City to restore the security deposit to its original amount. 3.3.3. If Lessee fully performs its obligations under this Lease, the security deposit or any balance thereof shall be returned to the Lessee at the expiration of this Lease, or after Lessee has vacated the Premises, whichever is later, provided that the City may retain the security deposit until such time as any amount due from the Lessee to the City has been paid in full. 4. USE OF PREMISES. The Premises shall be used by Lessee for storage uses and for no other use or purpose without the City's prior written consent. 5. RESTRICTIONS ON USE. In connection with the use of the Premises, Lessee shall: 5.1. Refrain from any use that would be offensive to other lessees at the Premises or users of neighboring premises or that would tend to create a nuisance or damage the reputation of the Premises. 5.2. Not permit its customers or clients to cause litter, garbage or other refuse or debris to accumulate on the Premises except in suitable garbage containers. 5.3. Lessee shall not erect signage without the City's prior written consent, not to be unreasonably withheld, and as is consistent with Pasco Municipal Code Title 17. 6. CARE OF PREMISES. Lessee shall use ordinary care in its use of the Premises, and repair any damage caused by its negligence, reasonable wear and tear excepted. Page 78 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 4 of 14 7. THE CITY'S REPRESENTATIONS, WARRANTIES AND COVENANTS. the City hereby represents and warrants to Lessee that it has the full right, power and authority to lease the Premises to Lessee. The City represents and warrants to Lessee that the consent or approval of any third party, including, without limitation, a lender, is not required with respect to the execution of this Lease, or if any such third-party consent or approval is required, the City has obtained any and all such consents or approvals. Except as specifically set forth herein, neither the City nor its agents have made any representations with respect to the Premises. No rights, easements, or licenses are acquired by Lessee by implication or otherwise except as expressly set forth in the provisions of this Lease. The taking of possession of the leased property by the Lessee shall be conclusive evidence that the Premises were in good condition at the time possession was taken. LESSEE ACCEPTS THE PREMISES AS-IS, except that upon delivery the Premises (including all access points to the Premises) will be in sound condition both structurally and mechanically; water tight; with all systems and utilities in good working order and stubbed to the Premises; free of materials harmful to persons or property (including toxic molds, biotoxins, radon, asbestos and other Hazardous Materials regulated by law); broom clean and free of all debris, furniture, fixtures, and equipment; and free of latent defects (the "Delivery Condition"). 8. QUIET ENJOYMENT. The City agrees that so long as Lessee observes and performs all of the agreements and covenants required of it hereunder, Lessee shall peaceably and quietly have, hold and enjoy the Premises for the Lease term without any encumbrance, interference or hindrance by the City, its agents or employees. 9. UTILITIES, REPAIRS AND MAINTENANCE. The City shall provide, at its own expense, all utilities serving the Premises, including electrical service, heating and cooling, water, sewer, and gas. The City shall also maintain and repair the Premises, Building and Common Areas, except for maintenance or repairs required as a result of Lessee's negligence. Lessee shall give the City access to the Premises at all reasonable times upon not less than forty-eight (48) hours advance notice (except in case of an emergency in which case no notice shall be necessary), without charge or diminution of rent, to enable the City to examine the same and to make such repairs, additions and alterations as the City may deem advisable or is required hereunder, provided that the City shall use commercially reasonable efforts to minimize any interference with Lessee's business, and following completion of the work, and shall return Lessee's fixtures, property and equipment to the original locations and condition. Lessee shall have access to the Premises and all parking 24-hours per day, 365 days per year. 10. TAXES. Lessee shall pay all taxes assessed against and levied upon Lessee's trade fixtures, and all other personal property of Lessee contained in or around the Premises. Page 79 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 5 of 14 11. INSURANCE AND INDEMNITY. 11.1. Workers' Compensation. The Lessee must maintain Workers' Compensation insurance in compliance with all applicable statutes 11.2. General Liability. The Lessee must maintain insurance at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City of Pasco shall be named as an additional insured on Lessee's Commercial General Liability insurance policy using ISO Form CG 20 11, Additional Insured - Managers or Lessors of Premises or a substitute endorsement providing at least as broad coverage. Commercial General liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. 11.3. Primary Insurance. The Lessee's Commercial General Liability insurance policy or policies are to contain or be endorsed to contain that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Lessee's insurance and shall not contribute with it. 11.4. Lessee Property Insurance. The Lessee must keep in force for the duration of the Lease a policy covering damages to its property at the Premises including any improvements with no coinsurance provisions. The amount of coverage shall be sufficient to replace the damaged property, loss of use, and must comply with any ordinance or law requirements. 11.5. Hazardous Materials Coverage. Lessee must carry sufficient coverage, to the reasonable satisfaction of the City, for damage caused by Hazardous Materials. Said coverage to be of an amount and type consistent with industry standards and at a rate that is commercially reasonable. 11.6. Adjustment to Insurance Coverage Limits. The coverage limits set forth herein shall be increased at the time of any Renewal Term to limits as reasonably specified by the City. 11.7. Additional Insured - Certificate of Insurance. The Lessee shall provide, prior to occupancy, evidence of the required insurance in the form of a Certificate of Insurance issued by a company (rated not less than A: VII or better according to Best's), licensed to do business in the state of Washington, which includes all coverages required in this Section 11. Lessee will list the City as an Additional Insured on the Commercial General Liability policy. The Certificate(s) shall also provide the coverage may not be canceled, non-renewed, or materially changed without thirty (30) days prior written notice to the City. Page 80 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 6 of 14 11.8. State-required Insurances. Lessee shall carry insurance coverage that satisfies all Washington State required insurances at the required limits and shall list the City as Additional Insured on all such policies, as applicable. 11.9. Verification of Coverage. Lessee shall furnish the Lessor with original certificates and a copy of the mandatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Lessee. 11.10. City's Insurance. The City shall maintain so called "all risk" property insurance on the Building at one hundred percent (100%) of replacement cost, together with such other insurance coverage as the City may elect to maintain. 11.11. Indemnity. Subject to Section 11.12 below, each party hereby agrees to indemnify, defend and hold harmless the other party, its affiliates, and their respective directors, employees and agents from and against any and all third party suits, claims, actions, demands, liabilities, expenses and/or losses, including reasonable legal expenses and reasonable attorneys' fees ("Losses") to the extent such Losses result from any of the following, but except to the extent caused by the negligence or misconduct of the other party: (a) breach of warranty by the indemnifying party contained in this Lease; (b) breach of this Lease by the indemnifying party; or (c) negligence or willful misconduct of the indemnifying party, or their respective directors, employees and agents in connection with this Lease. 11.12. Waiver of Subrogation. The City and Lessee hereby release the other from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to property caused by fire or any other perils insured in policies of property insurance covering such property, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. All of Lessee's and The City's policies of property insurance shall contain waiver of subrogation endorsements in favor of the other party and copies of same shall be delivered upon request. 11.13. Duty to Maintain Insurance. Failure on the part of the Lessee to maintain the insurance as required shall constitute a material breach of lease, upon which the City may, after giving five business days' notice to the Lessee to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 11.14. Full Availability of Limits. If the Lessee maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Lessee, irrespective of whether such limits maintained by the Lessee are greater than those required Page 81 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 7 of 14 by this Lease or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Lessee. 12. DAMAGE OR DESTRUCTION; CONDEMNATION. If the Premises are damaged or destroyed in whole or in material part; or if the Premises or a substantial portion thereof are taken by condemnation or under the power of eminent domain, the City or Lessee may, at its option, elect to terminate this tenancy. If the Lease is not so terminated, the City shall promptly make any and all necessary repairs. 13. SURRENDER AT EXPIRATION. Upon expiration of the Lease term or earlier termination on account of default, Lessee shall surrender the Premises in good condition and repair, reasonable wear and tear excepted, damage by the City, casualty and condemnation excepted. 14. DEFAULT. Lessee shall be in default of this Lease if it (a): fails to pay any sum, including Base Rent, due under this Lease following five business (5) days' written notice from the City of the failure to pay, or (b) fails to comply with any term or condition or fulfill any obligation of the Lease and the failure continues for a period of 30 days after written notice by the City to Lessee, provided, however, that if the nature of Lessee's obligation is such that more than thirty (30) days are required for performance, then Lessee shall not be in default if Lessee commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. In the event of a default, this Lease may be terminated at the option of the City by written notice to Lessee. Whether or not the Lease is terminated by the election of the City or otherwise, the City shall be entitled to recover damages from Lessee and the City may retake possession of the Premises and reserves any other remedy available to the City under the applicable law; provided, however, that the City shall: (a) use good faith, commercially reasonable efforts to mitigate its damages arising out of any Lessee default; (b) not be entitled to accelerate the payment of Rent; (c) not be entitled to a "landlord's lien" against any of Lessee's personal property or trade fixtures; and (d) not be entitled to dispossess Lessee of the Premises pursuant to any "lock-out" or other non-judicial remedy. Under no circumstances shall Lessee be required to waive any defenses, counterclaims or rights it may have under applicable law to cure defaults or prevent Lease termination or eviction. 14.1. City's Default. Should the City default in the performance of any covenants and/or conditions on the City 's part herein contained, and if such default is not cured within thirty (30) days after written notice by the Lessee to the City thereof, except in case of an emergency in which case no notice shall be necessary and no opportunity to cure shall apply, or if such default cannot be cured within thirty (30) days, then if the City does not notify Lessee of delay or does not commence within such thirty (30) days to cure said default and cure the same with all reasonable dispatch, Lessee shall have the right to cure said default for the account of the City, and the City shall upon demand, reimburse Lessee for Lessee's costs and expenses incurred in connection therewith. Nothing contained in this Page 82 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 8 of 14 Paragraph 14.1 shall be construed so as to abridge any rights otherwise available to Lessee at law or in equity. 15. MISCELLANEOUS. 15.1. Environmental Compliance by Lessee. Lessee shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Premises. The City, to its knowledge, as of the Effective Date hereby represents and warrants that (a) the Premises and Building do not contain Hazardous Materials; (b) the Premises and Building have not been used in violation of any environmental laws; and (c) the Premises and Building are in compliance with environmental laws as of the Commencement Date. Lessee shall have no responsibility for any Hazardous Materials that: (i) existed on the Premises before the Commencement Date; or (ii) were caused by the City, its agents, employees, or contractors; or (iii) that Lessee can demonstrate migrated onto the Premises from a source off-Premises that was not caused by Lessee. As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material, or waste which is or becomes regulated by any local governmental authority, the state of Washington or the United States government. The term "Hazardous Material" includes, without limitation, any material or substance that is: (a) defined as a "hazardous waste," "extremely hazardous waste," "restricted hazardous waste," "hazardous substance," "hazardous material," or "waste" under any federal, state or local law; (b) petroleum; and (c) asbestos. The provisions of this Section 15.1, including, without limitation, the indemnification provisions set forth herein, shall survive any termination of this Lease. 15.2. Non-waiver. Waiver by either party of strict performance of any provision of this Lease shall not be a waiver of or prejudice to the party's right to require strict performance of the same provision or of any other provision in the future. 15.3. Notices. Any notice will be deemed delivered: (a) when personally delivered; (b) when delivered by facsimile or electronic mail transmission (in either case, with confirmation of delivery); (c) on the day following delivery of the notice by reputable overnight courier; or (d) on the day following delivery of the notice by mailing by certified or registered U.S. mail, postage prepaid, return receipt requested; and in any case shall be sent to the applicable party at its address as set forth in Section 16 below. Addresses for notices may be changed from time to time by written notice to all other parties pursuant to this Section 15.3. 15.4. Time of Essence. Time is of the essence of the performance of each of the obligations under this Lease. 15.5. Recording of Lease. This Lease need not be recorded. Page 83 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 9 of 14 15.6. Rules and Regulations. Lessee shall observe reasonable Rules and Regulations established and amended by the City for the Premises from time to time upon 30 days advance, written notice from the City to Lessee so long as any such rules, amendments or supplements do not adversely affect Lessee's use of the Premises or expenses incurred under this Lease. Lessee shall have a reasonable opportunity to comment on proposed rules and regulations. The Rules are in addition to and shall not be construed to modify or amend this Lease in any way, and to the extent the Rules conflict with the Lease the terms of the Lease shall control. 15.7. Assignment. Lessee shall not assign or transfer this Lease without the City's prior consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding anything in this Section 15.7 to the contrary, Lessee may, without the City's consent, but after providing written notice to the City, assign this Lease or sublet all or any portion of the Premises to: (a) any Related Entity (as defined below); (b) to a person or entity acquiring all or substantially all of Lessee's assets; (c) to a person or entity that acquires by merger, consolidation, or otherwise all or substantially all of the ownership interests in and control of Lessee. "Related Entity" means any parent company, subsidiary, affiliate or related corporate entity of Lessee that controls, is controlled by, or is under common control with Lessee. 15.8. Alterations, Improvements and Additions. Lessee shall make no alterations, improvements or additions to the Premises without the City's prior consent. The City may not withhold or condition its consent unless the making or installation of the improvements or alterations (a) adversely affects the Building structure, (b) adversely affects the Building systems, (c) do not comply with applicable laws, (d) affect the exterior appearance of the Building, or (e) a Design Problem. 15.9. Public Requirements. Lessee shall comply with all laws, orders, ordinances, and other public requirements now or hereafter affecting the premises or the use thereof and save City harmless from expense or damage resulting from failure to do so. The leased premises are not exempted from compliance with zoning or any other municipal codes or ordinances nor from any other requirements of law due to title being in the name of the City. 15.10. Responsible Party. Following is the name and phone number of Lessee's representative which may be contacted in an emergency: Brandy Dukes, Vice President of Operation, (630) 920-4780. 15.11. Lessee to Supply Information. The Lessee shall, whenever requested by the City to do so, furnish to the City full and correct contact information for staff members working at the Premises, as may be requested by the City. Page 84 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 10 of 14 15.12. Parking. Lessee, its employees, agents, contractors, and invitees, shall have the use in common with other lessees of the Building of the parking lot on the Property at no additional cost. As of the signing of this lease there are four (4) unreserved parking stalls available for Building lessees. 15.13. Dispute Resolution. In the event of a dispute regarding the terms, interpretation or breach of this Agreement, the parties shall first meet in a good faith to resolve the dispute. In the event the dispute cannot be resolved by agreement of the parties either with or without the assistance of mediation, said despite shall be resolved by arbitration pursuant to RCW 7.04A, as amended, with both parties waiving the right of a jury trial upon trial de novo, with venue being placed in Pasco, Franklin, County, Washington. The substantially prevailing party shall be entitled to its reasonable attorney fees and costs as additional award and judgement against the other. 15.14. Discrimination. Lessee shall not discriminate against any anyone because of sex, age, race, color, creed, national origin, marital status or the presence of any disability, including sensory, mental or physical handicap. 15.15. Lessee’s Property. The City agrees that all furnishings, furniture, fixtures, equipment, inventory, merchandise, goods, chattels, trade fixtures, signage, appliances and other personal property of Lessee at any time located on the Premises, (collectively, "Lessee's Property"), shall be and at all times remain the sole and absolute property of Lessee, regardless of whether the same (x) is affixed to the Premises, or (y) may now or hereafter be regarded as a fixture or as property of the City by operation of law or otherwise. Lessee shall have the right at any time and from time to time during the Term to remove any Lessee's Property from the Premises; provided, however, that Lessee shall repair all damage caused by such removal of Lessee’s Property. 15.16. Successors. Subject to Section 15.7, this Lease shall bind and inure to the benefit of the parties, their respective heirs, successors, and permitted assigns. 15.17. Time of the Essence. Time is of the essence of each and every provision hereof. If the final date of any period of time set forth herein occurs on a Saturday, Sunday or legal holiday, then in such event, the expiration of such period of time shall be postponed to the next day which is not a Saturday, Sunday or legal holiday. 15.18. Force Majeure. Except for the Commencement Date, the City and Lessee shall be excused for the period of delay in the performance of any of their obligations hereunder, and shall not be considered in default, and all time periods permitted hereunder for the performance of any such term, covenant, or condition shall be tolled on a day-for-day basis upon written Page 85 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 11 of 14 notice from either party to the other of such party's inability to perform or satisfy any such term, covenant, or condition of this Lease due to a Force Majeure. For purposes hereof, "Force Majeure" means strikes, lockouts, labor disputes, shortages of labor, fire or other casualty, Acts of God, or any other cause beyond the reasonable control of a party, including, but not limited to, events of nature (including snow or ice storm, tornadoes, windstorms, flooding and severe weather), civil disturbances, interruptions by government or court order, valid orders of any regulatory body having proper jurisdiction, pandemics and epidemics, wars, riots, inability to secure materials (including inability to secure materials by reason of allocations promulgated by authorized governmental agencies but not including any such inability to obtain materials due to cost), and inability to obtain permits due to any of the foregoing. 15.19. Counterparts. This Lease may be executed in counterparts all of which taken together shall be deemed one original when executed by both parties. Furthermore, the parties agree that (i) this Lease may be transmitted between them by electronic mail and (ii) electronic signatures (including electronic copies of manual signatures) shall have the effect of original signatures relative to this Lease. 16. NOTICES. Notice provided for in this Agreement shall be sent by: 16.1. Personal Service upon the contacts in 16.2 16.2. The contacts for the purpose of this Agreement Shall be: 16.2.1. For the City: Jesse Rice Parks & Recreation Director 525 N 3rd Ave Pasco, WA 99301 ricej@pasco-wa.gov 16.2.2. For the Lessee: Brandy Dukes Vice President of Operations 801 Third Ave, Suite 220 Seattle, WA 98104 17. Entire Agreement. This Lease and the covenants and agreements set forth herein are and shall constitute the entire agreement between the parties. None of these terms, covenants, and agreements of this Lease shall in any manner be altered, waived or changed, except by written instrument signed and delivered by the parties hereto. 18. Authorization. By signature below, each party warrants that they are authorized and empowered to execute this Agreement binding the City and the Lessee respectively. Page 86 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 12 of 14 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above. CITY OF PASCO, WASHINGTON LESSEE – INATAI FOUNDATION City Manager Brandy Dukes, Vice President of Operations STATE OF WASHINGTON ) :ss County of Franklin ) On this day personally appeared before me __________________, City Manager for the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ____ day of ____________, 2025. seal _______________________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires____________________ STATE OF WASHINGTON ) :ss County of Franklin ) On this day personally appeared before me Brandy Dukes, Vice President of Operations for the INATAI Foundation, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ____ day of ____________, 2025. seal _______________________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires___________________ Page 87 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 13 of 14 EXHIBIT A Legal Description Legal description for property at the address of 403 W Lewis St, Pasco WA as follows: That part of School Block Addition to the City of Pasco, Washington, described as lots Numbers One(1), Two(2), Three(3) and Four (4) and that part of Lot Number Five (5) in said School Block Addition described as follows beginning at the southeasterly corner of said lot Five as the point of beginning; thence southwesterly along the South line of said lot, a distance of twenty (20) feet; thence in a northeasterly direction, parallel with the West line of said lot a distance of one hundred and forty (140) feet to the alley in said block, thence along the North line of said lot Five, a distance of twenty (20) feet to the northeasterly corner of said lot, thence, in a southeasterly direction, along East line of said lot, a distance of one hundred and forth (140) feet, to the point of the beginning; all according to the plat of said School Block Addition on file in the office of the County Auditor of all according to the plat of said School Block Addition on file in the office of the County Auditor of Franklin County, Washington and recorded in Book No. 23, at Page 135 of Deed Records said lots of parcels of land lying and being in Section Twenty-nine (29), Township Nine (9) North of Range thirty (30) East of the Willamette Meridian. Page 88 of 91 403 W Lewis St, Suite A – Lease Agreement INATIA Foundation Page 14 of 14 EXHIBIT B Premises Page 89 of 91 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 90 of 91 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 91 of 91