Loading...
HomeMy WebLinkAbout2025.02.03 Council Meeting Packet AGENDA City Council Regular Meeting 7:00 PM - Monday, February 3, 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 meeting. To listen to the meeting via phone, call 1-332-249-0718 and use access code 453 132 855#. City Council meetings are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Councilmembers, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. 5 - 20 (a) Approval of Meeting Minutes for January 21st and January 27th To approve the minutes of the Pasco City Council Regular Meeting held on January 21, 2025, and Special Meeting and Regular Workshop held on January 27, 2025. 21 - 22 (b) Bills and Communications - Approving Claims in the Total Amount of $11,213,597.17) Page 1 of 150 To approve claims in the total amount of $11,213,597.17 ($9,820,790.56 in Check Nos. 269211 - 269640; $143,203.21 in Electronic Transfer Nos. 848900 - 848975, 848978 - 849152; $9,067.69 in Check Nos. 54877 - 54881; $1,240,535.71 in Electronic Transfer Nos. 30220276 - 30220921. 23 - 43 (c) Resolution No. 4561 - Change Order No. 6 Process Water Reuse Facility Phase 2 Construction Contract with Tapani To approve Resolution No. 4561, 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. 44 - 55 (d) Resolution No. 4562 - Acceptance of Work for Road 36 Golf Course Irrigation Line Extension To approve Resolution No. 4562, accepting work performed by Big D's Construction of Tri-Cities Inc., under contract for Road 36 Golf Course Irrigation Line Extension Project. 56 - 73 (e) Resolution No. 4563 - Lease Agreement with INATAI Foundation for Use of City Facilities To approve Resolution No. 4563, authorizing the City Manager to execute a 28-month lease agreement between INATAI Foundation and the City of Pasco for storage space at 403 W. Lewis St. Pasco, WA. (RC) MOTION: I move to approve the Consent Agenda as read. 5. PROCLAMATIONS AND ACKNOWLEDGEMENTS 6. PUBLIC COMMENTS - The public may address Council on any items unless it relates to a scheduled Public Hearing. This item is provided to allow the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. Lastly, when called upon, please state your name and city or county residency into the microphone before providing your comments. 7. REPORTS FROM COMMITTEES AND/OR OFFICERS (a) Verbal Reports from Councilmembers Page 2 of 150 74 - 97 (b) Franklin County Conservation District Presentation (10 minutes) Presentation - Kara Kaelber, Manager, Franklin Conservation District 8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 98 - 107 (a) *Resolution No. 4564 - Acceptance of Work for Broadmoor Area Tax Increment Financing Improvements Utility Package Phase 1B Project (5 minutes) MOTION: I move to approve Resolution No. 4564, accepting the work performed by Goodman & Mehlenbacher Enterprises, Inc., under contract for the Broadmoor Area Tax Increment Financing (TIF) Improvements – Utility Package Phase 1B project. 108 - 119 (b) *Resolution No. 4565 - Bid Award for Broadmoor Area Tax Increment Financing Improvements - Sandifur Pkwy/Rd 108 Extension Project (5 minutes) MOTION: I move to approve Resolution No. 4565, awarding bid for Project No. 23 552 for the Sandifur Pkwy/Rd 108 Extension Project to Culbert Construction of Pasco, Washington and, further, authorize the City Manager to execute the contract documents. 120 - 147 (c) Resolution No. 4566 - Authorizing the Interim City Manager to Execute Purchase and Sale Agreement to Purchase 321 W Lewis St (5 minutes) MOTION: I move to approve Resolution No. 4566, ratifying the purchase and sale agreement with West Pasco LLC for purchase of 321 West Lewis Street, Pasco, WA. 10. UNFINISHED BUSINESS 11. NEW BUSINESS 148 (a) Cancellation of the February 10, 2025, Council Workshop (1 minute) MOTION: I move to approve the cancellation of the regularly scheduled Council Workshop set for February 10, 2025. 12. MISCELLANEOUS DISCUSSION 13. EXECUTIVE SESSION Page 3 of 150 14. ADJOURNMENT 15. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 149 - 150 (b) Adopted Council Goals (Reference Only) (c) This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the City Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 4 of 150 AGENDA REPORT FOR: City Council January 29, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Debra Barham, City Clerk City Manager SUBJECT: Approval of Meeting Minutes for January 21st and January 27th I. ATTACHMENT(S): 1.21.2025 and 1.27.2025 Draft Council Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Regular Meeting held on January 21, 2025, and Special Meeting and Regular Workshop held on January 27, 2025. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 5 of 150 MINUTES City Council Regular Meeting 7:00 PM - Tuesday, January 21, 2025 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:00 PM by Pete Serrano, Mayor. ROLL CALL Councilmembers present: Pete Serrano, David Milne, Blanche Barajas, Melissa Blasdel, Charles Grimm, Peter Harpster, and Leo Perales Councilmembers attending remotely: Councilmembers absent: None Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Kevin Crowley, Fire Chief; Eric Ferguson, City Attorney; Craig Raymond, Deputy Community & Economic Development Director; Jesse Rice, Parks & Recreation Director; Brent Cook, Deputy Police Chief; Maria Serra, Public Works Director; and Debby Barham, City Clerk The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA Approval of Meeting Minutes for January 6th and January 13th To approve the minutes of the Pasco City Council Regular Meeting held on January 6, 2025 and Regular Workshop held on January 13, 2025. Bills and Communications - Approving Claims in the Total Amount of $6,929,621.42 To approve claims in the total amount of $6,929,621.42 ($4,996,564.82 in Check Nos. 268932 - 269210; $714,408.86 in Electronic Transfer Nos. 848893, 848976, 848977; $3,315.18 in Check Nos. 54873 - 54876; $1,215,332.56 in Electronic Page 1 of 9Page 6 of 150 Transfer Nos. 30219634 - 30220275). Resolution No. 4554 - Project Acceptance for the Burns Road Restriping Project To approve Resolution No. 4554, accepting work performed by Pavement Surface Control, under contract for the Burns Road Restriping project. Resolution No. 4555 - Change Order No. 12 for the West Pasco Water Treatment Plant Phase 2 To approve Resolution No. 4555, authorizing the City Manager to execute Change Order No. 12 to the construction contract with Apollo, Inc. for the West Pasco Water Treatment Plant Improvements Phase 2 project. Resolution No. 4556 - Bid Award for Broadmoor Area Tax Increment Financing Improvements - Sandifur Pkwy/Broadmoor Blvd Intersection Improvements Project To approve Resolution No. 4556, awarding the construction contract for Bid No. 24600 Sandifur Pkwy/Broadmoor Blvd Intersection Improvements Project to Tapani, Inc., of Richland, Washington, in the amount of $4,286,821.62, and further, authorize the City Manager to execute the contract documents. Resolution No. 4557 - Northwest Code Professionals Personal Services Agreement for Plan Review and Inspection Services To approve Resolution No. 4557, authorizing the City Manager to execute a Personal Services Agreement with Northwest Code Professionals for plan review and inspection services. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to approve the Consent Agenda as read. RESULT: Motion carried unanimously by roll call vote. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales PUBLIC COMMENTS Michelle Andres, Pasco resident, commented on Sylvester Street speed limit, speeding along Court Street, and renewable energy independence. Mary Mahoney, Pasco resident, commented on bald eagles in the flood plain, Pasco aquatic center, Capital Improvement Plan (CIP), animal control, Washington State University issues. Page 2 of 9Page 7 of 150 Mayor Serrano stated that there was a request to move the Draft HAPO Center Master Plan presentation up in the agenda. MOTION: Councilmember Perales moved, seconded by Councilmember Blasdel to move agenda item No. 10(a) "Presentation - Draft HAPO Center Master Plan" to the end of the Public Comments section. RESULT: Motion carried unanimously. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Presentation - Draft HAPO Center Master Plan Mr. Rice introduced Larry Leasure, with the White-Leasure Group, Charlie Johnson with CH Johnson Consulting and Brian Cole with MacKay Sposito, Inc.. Mr. Leasure, Mr. Johnson and Mr. Cole presented the process used in developing the draft HAPO Center Master Plan. They also discussed the possibilities and proposed uses for the HAPO Center and Sports Complex. Mr. Johnson stated that the draft HAPO Center Master Plan will be released on Friday, January 24, 2025, to Franklin County. The City Council and the team developing the master plan briefly discussed the next steps in the process of the master plan. The team will be presenting the same presentation to the Franklin County Commissioners on Wednesday, January 22nd in the morning and then to the HAPO Advisory Board in the afternoon. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Mr. Grimm reported on the Benton-Franklin Council of Governments (BFCOG) and Franklin County Emergency Management meetings he recently attended Mr. Harpster reported on the 2025 Mid-Columbia Ag Hall of Fame event he recently attended. Mayor Pro Tem Milne Hispanic Chamber of Commerce meeting he recently attended. Mayor Serrano reported on the Tri-Cities National Park Committee meeting and the Washington State Veterans of Foreign Wars event he recently attended. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS Page 3 of 9Page 8 of 150 RELATING THERETO Public Meeting & Resolution No. 4558 - Accepting a Notice of Intent to Commence Annexation Urbach 10% Annexation Petition Mr. Raymond provided a brief report related to the petition to annex into the City and to hold a public meeting before Council may consider accepting the notice of intent to commence the annexation process. He stated that staff is recommending expanding the annexation to include the expanded boundary. Mr. Perales asked for clarification regarding the two resolution options and Mr. Raymond stated that the Resolution - Option B, includes an expanded area for potential annexation. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales to approve Resolution No. 4558, accepting a notice of intent to commence annexation proceedings for the Urbach Annexation providing a determination on the boundary to be annexed, which includes Parcels Nos. 115150079, 115150089 and 115120020, and a portion of the right-of-way of Kau Trail Road, and whether simultaneous zoning and the assumption of bonded indebtedness will be required. RESULT: Motion carried unanimously. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Ordinance No. 4754 - The Grove at Broadmoor Rezone from RT to R-4 (Z 2024-005) Mayor Serrano announced that the the rezone item was a quasi-judicial action and asked Mr. Ferguson to explain the procedure for quasi-judicial items. Mr. Ferguson read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. With no response from the Councilmembers, he asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. Raymond provided a brief report on the proposed rezone. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4754, amending the zoning classification of certain real property located on the south side of Burns Road, east of Road 112, north of Sandifur Parkway, and west of Road 108, in Pasco, Franklin County, Page 4 of 9Page 9 of 150 Washington, from R-T Residential Transition, to R-4 High Destiny Residential and, further, authorize publication by summary only. RESULT: Motion carried unanimously. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Ordinance No. 4755 - Marroquin Heaton Duarte Rezone from R-S-12 to R-1 (Z 2024-006) Mayor Serrano announced that the rezone item was a quasi-judicial action and asked Mr. Ferguson to explain the procedure for quasi-judicial items. Mr. Ferguson read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. With no response from the Councilmembers, he asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. Raymond provided a brief report on the proposed rezone. Councilmembers Grimm, Milne and Harpster provided their thoughts on the proposed rezone. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4755, amending the zoning classification of certain real property located on the west side of Road 64 south of Marie Street, in Pasco, Franklin County, Washington, from R-S-12 Residential Suburban to R-1 Low- Density Residential and, further, authorize publication by summary only. RESULT: Motion carried. 4-3 AYES: Mayor Serrano, Councilmember Barajas, Councilmember Blasdel, and Councilmember Harpster NAYS: Mayor Pro Tem Milne, Councilmember Grimm, and Councilmember Perales Ordinance No. 4756 - Broadmoor Aquatic Facility Rezone from R-T to MU (Z 2024-008) Mayor Serrano announced that the rezone item was a quasi-judicial action and asked Mr. Ferguson to explain the procedure for quasi-judicial items. Mr. Ferguson read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential Page 5 of 9Page 10 of 150 conflicts or appearance of conflicts. With no response from the Councilmembers, he asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. Mr. Ferguson disclosed that he has had no dealing with this item. However, since he currently represents both the City of Pasco and the Pasco Public Facilities District felt that it was important to disclose this information. Mr. Raymond provided a brief report on the proposed rezone. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4756, amending the Zoning Classification of certain real property located in the east half of the southeast quarter of Section 7, Township 9 North, Range 29 east of the Willamette Meridian, west of Road 108 Right-of-Way, North of Harris Road, in Pasco, Franklin County, Washington, from R-T, Residential Transition to MU, Mixed-Use, and, further, authorize publication by summary only. RESULT: Motion carried unanimously. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Resolution No. 4559 - Road 40 East Extension - Settlement Agreement and Right-of-Way Acquisition with Culbert, LLC Ms. Serra provided a brief report related to the settlement agreement and right-of- way acquisition. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to approve Resolution No. 4559, authorizing the City Manager to execute the Driveway Relocation and Street Widening Settlement Agreement between the City of Pasco and Culbert, LLC. RESULT: Motion carried unanimously. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales UNFINISHED BUSINESS Ordinance No. 4757 - Amending PMC Title 25 Zoning Related to Overnight Truck Habitation Mr. Gonzalez provided a brief recap of the overnight truck habitation and presented the updated ordinance amendment the Pasco Municipal Code (PMC) Page 6 of 9Page 11 of 150 to incorporate the overnight truck habitation in the City of Pasco. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4757, Amending Pasco Municipal Code Title 25 “Zoning,” to allow for overnight truck parking and habitation and creating a new Chapter 25.163 “Overnight Truck Parking and Habitation” and, further, authorize publication by summary only. RESULT: Motion carried unanimously. 7-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales Ordinance No. 4758 - Amending PMC 5.60.010, 5.60.020 & 5.60.030 Related to Rental Licenses or Repealing Pasco Municipal Code Chapter 5.60 Rental License And Amend Section 3.35.050 Business Licenses Ms. Sigdel provided the options to Council to either revise the Rental License program or repeal both the rental license and amend the business license program. Council and staff briefly discussed the options and if there would be any legal ramifications if the program was repealed. MOTION: Councilmember Grimm moved, seconded by Councilmember Blasdel to adopt Ordinance No. 4758, repealing the Pasco Municipal Code Chapter 5.60 Rental License and amending the Pasco Municipal Code Section 3.35.050 related to Business Licenses and, further, authorize publication by summary only. RESULT: Motion carried. 5-2 AYES: Mayor Serrano, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales NAYS: Mayor Pro Tem Milne and Councilmember Barajas Court Street Traffic Analysis - Second Opinion Ms. Serra introduced John Manix, PE, Traffic Engineer with PBS Engineering, who presented the traffic analysis and recommendations for Court Street. Mayor Pro Tem Milne expressed appreciation to staff and PBS Engineering for the second opinion. Mr. Perales asked for additional information regarding how Mr. Manix's reached his recommendations and Mr. Manix referred to the Complete Streets Plan. Page 7 of 9Page 12 of 150 Mr. Grimm and Mr. Harpster provided their comments and recommendations for clamming the roadway. Ordinance No. 4759 - Amending PMC Section 10.35.030 Speed Limits in Certain Zones Ms. Serra provided a brief overview of the proposed speed limit reductions in a portion of Court Street and a portion of Sylvester Street. Mr. Harpster asked Mr. Ferguson the status of the establishing City of Pasco Speed Limit procedures. Mr. Ferguson stated that his staff have developed draft procedures and that they will be ready for Council review in the next few weeks. Mr. Harpster asked Ms. Serra the reasoning for the reduction of speed along Sylvester Street and Ms. Serra responded stating it a grant requirement for the safety the multi-modal traffic. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Barajas to adopt Ordinance No. 4759, amending the Pasco Municipal Code Section 10.35.030 "Speed Limit in Certain Zones," to establish a new speed limit on Court Street west of Road 100, and Sylvester Street between Road 54 and Road 32 and, further, authorize publication by summary only. RESULT: Motion carried. 5-2 AYES: Mayor Pro Tem Milne, Councilmember Barajas, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales NAYS: Mayor Serrano and Councilmember Blasdel MISCELLANEOUS DISCUSSION Mr. Harpster asked Council to provide staff direction to plan for a new City Attorney. Mr. Grimm, Mr. Harpster and Mayor Serrano expressed a preference for an in- house counsel with the possibility having a gap-fill until in-house counsel is hired. There was also the concern of the timing of seeking a new City Manager at the same time. Mr. Lincoln provided some options for next steps related to seeking candidates for the pending open positions. Mr. Perales commented on a recent vehicle crash near his home. He suggested Council consider establishing a comprehensive traffic safety program such as Vision Zero. Page 8 of 9Page 13 of 150 RECESS Mayor Serrano called for a five-minute recess at 9:00 PM. EXECUTIVE SESSION Council adjourned into Executive Session at 9:05 PM for 30 minutes returning at 9:35 PM to evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW 42.30.140(4), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public per RCW 42.30.110(1)(g). Other attendees included the City Manager, Deputy City Manager, and City Attorney. Mr. Lincoln and Ms. Sigdel left the Executive Session at 9:12 PM. At 9:35 PM Mayor Serrano announced that the Executive Session would continue for another 15 minutes or until 9:50 PM. At 9:50 PM Mayor Serrano announced that the Executive Session would continue for another 10 minutes or until 10:00 PM. At 10:00 PM Mayor Serrano announced that the Executive Session would continue for another 10 minutes or until 10:10 PM. At 10:10 PM Mayor Serrano announced that the Executive Session would continue for another 5 minutes or until 10:15 PM. Mayor Serrano called the meeting back to order at 10:15 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 10:15 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: Pete Serrano, Mayor Debra Barham, City Clerk Page 9 of 9Page 14 of 150 MINUTES City Council Special Meeting 7:00 PM - Monday, January 27, 2025 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:00 PM by Pete Serrano, Mayor. ROLL CALL Councilmembers present: Pete Serrano, David Milne, Melissa Blasdel, Charles Grimm, Peter Harpster, and Leo Perales Councilmembers attending remotely: None Councilmembers absent: Blanche Barajas Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Kevin Crowley, Fire Chief; Eric Ferguson, City Attorney; Jesse Rice, Parks & Recreation Director; Maria Serra, Public Works Director; and Debby Barham, City Clerk The meeting was opened with the Pledge of Allegiance. EXECUTIVE SESSION Council adjourned into Executive Session at 7:03 PM for 10 minutes returning at 7:13 PM to review the performance of a public employee per RCW 42.30.110(1)(g) with City Attorney. At 7:13 PM Mayor Serrano announced that the Executive Session would continue for another 5 minutes or until 7:18 PM. At 7:18 PM Mayor Serrano announced that the Executive Session would continue for another 10 minutes or until 7:28 PM. Mr. Ferguson left the Execute Session at 7:21 PM. Page 1 of 3Page 15 of 150 Mayor Serrano called the meeting back to order at 7:28 PM. NEW BUSINESS Early Release of Adam R. Lincoln under Section 10 of the City Manager Employment Agreement Mr. Ferguson provided a brief review of Mr. Lincoln's employment agreement and the early release option for Council's consideration. Mr. Harpster noted that Mr. Lincoln will be paid out per the terms of this employment agreement. MOTION: Mayor Pro Tem Milne moved, seconded by Mayor Serrano to approve the early release of Adam R. Lincoln, per Section 10 of the City Manager Employment Agreement between the City of Pasco, Washington, and Adam R. Lincoln effective January 31, 2025. RESULT: Motion carried. 5-1 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales NAYS: Councilmember Blasdel ABSENT: Councilmember Barajas Council expressed appreciation to Mr. Lincoln for his service with the City of Pasco and wished him well in his new position with the Port of Pasco. Mr. Lincoln responded that it was an honor to serve for the City of Pasco. Resolution No. 4560 - Agreement with GMP Consulting for Interim City Manager Services Mr. Ferguson explained that, if approved, GMP Consulting will provide interim City Manager services until a City Manager is hired. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Blasdel to approve Resolution No. 4560, approving the personal services agreement for the position of Interim City Manager. RESULT: Motion carried 6-0 AYES: Mayor Serrano, Mayor Pro Tem Milne, Councilmember Blasdel, Councilmember Grimm, Councilmember Harpster, and Councilmember Perales ABSENT: Councilmember Barajas ADJOURNMENT Page 2 of 3Page 16 of 150 There being no further business, the meeting was adjourned at 7:40 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: Pete Serrano, Mayor Debra Barham, City Clerk Page 3 of 3Page 17 of 150 MINUTES City Council Workshop Meeting 7:15 PM - Monday, January 27, 2025 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:40 PM by Pete Serrano, Mayor. ROLL CALL Councilmembers present: Pete Serrano, David Milne, Melissa Blasdel, Charles Grimm, Peter Harpster, and Leo Perales Councilmembers attending remotely: Councilmembers absent: Blanche Barajas Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Kevin Crowley, Fire Chief; Eric Ferguson, City Attorney; Jesse Rice, Parks & Recreation Director; Maria Serra, Public Works Director; and Debby Barham, City Clerk ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC COMMENT Presentation - Columbia Ability Alliance Mr. Lincoln introduced Michael Novakovich, President & CEO of Columbia Ability Alliance (CAA). Mr. Novakovich first introduced Kim Pierret, CFO and Cheri Montel, HR Director who were in the audience and then he provided a presentation of the services CAA provides within the community. Mayor Serrano expressed appreciation to Mr. Novakovich for his work on CAA's mission and impact it has in the community. Mayor Serrano called for public comments three (3) times, and no one came forward to speak. Page 1 of 3Page 18 of 150 Development Fees Review Ms. Sigdel provided a presentation on the City's Development Fees, which included:  Types of fees (building, impact, and connection fees, as well as planning and development fees)  Fees comparison with the Cities of Kennewick, Richland and West Richland  Focus on Development Review Fees Ms. Sigdel commented on the City of Kennewick's Development Review Fees process and how that process may be appropriate for the City of Pasco to adopt. Mr. Grimm expressed appreciation for the presentation that that the suggested amendments will add predictability and streamlining of the development review process. Mr. Harpster provided comments and suggestions for the fees collection. Ms. Sigdel stated that there is another outreach opportunity and that she anticipated that this item would come back for Council final review and approval in a month or so. Mayor Serrano suggested that the charges be based on square footage of the building itself. Mayor Serrano called for public comments. Mr. Granbois, Pasco resident, suggested that the cost to the property owner be included. Monthly Update: Transportation Impact Fee Study Ms. Sigdel provided a brief review of the actions taken for the Transportation Impact Fee study. She provided the next steps of this effort with the anticipation of bringing the study completed and presented to Council in March 2025. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - Change Order No. 6 PWRF Phase 2 Construction Contract with Tapani Ms. Serra provided a brief report on the proposed Change Order No. 6 for the Process Water Reuse Facility (PWRF) Phase 2 project. Mayor Serrano called for public comments three (3) times and no one came Page 2 of 3Page 19 of 150 forward to speak. Resolution - Acceptance of Work for Road 36 Golf Course Irrigation Line Extension Ms. Serra provided a brief report on the completion of the Road 38 Golf Course Irrigation Line Extension project. Mayor Serrano called for public comments three (3) times and no one came forward to speak. Resolution - Lease Agreement with INATIA Foundation for Use of City Facilities Mr. Rice provided a brief report on the proposed lease agreement with INATIA Foundation for storage space. Mayor Serrano called for public comments three (3) times and no one came forward to speak. MISCELLANEOUS COUNCIL DISCUSSION Mr. Grimm expressed appreciation to City staff for their commitment to the City. ADJOURNMENT There being no further business, the meeting was adjourned at 8:40 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: Pete Serrano, Mayor Debra Barham, City Clerk Page 3 of 3Page 20 of 150 AGENDA REPORT FOR: City Council January 30, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Darcy Buckley, Finance Director Finance SUBJECT: Bills and Communications - Approving Claims in the Total Amount of $11,213,597.17) I. ATTACHMENT(S): Accounts Payable 01.16.25 to 01.29.25 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $11,213,597.17 ($9,820,790.56 in Check Nos. 269211 - 269640; $143,203.21 in Electronic Transfer Nos. 848900 - 54881; - 54877 Nos. Check - $9,067.69 849152; 848978 848975, in $1,240,535.71 in Electronic Transfer Nos. 30220276 - 30220921. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 21 of 150 REPORTING PERIOD: February 3, 2025 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 269211 - 269640 54877 - 54881 Total Check Amount $9,820,790.56 $9,067.69 Total Checks 9,829,858.25$ Electronic Transfer Numbers 848900 - 848975 30220276 - 30220921 848978 - 849152 Total EFT Amount $143,203.21 $1,240,535.71 $0.00 $0.00 Total EFTs 1,383,738.92$ Grand Total 11,213,597.17$ Councilmember B 100 3,303,730.20 110 55,289.60 130 4,867.00 140 93,776.23 142 1,111.23 145 8,310.83 150 413,565.14 155 2,589.25 160 21,346.38 165 17,535.06 168 159,771.40 170 10,177.22 180 2,954.38 185 2,019.66 189 165.08 190 214.00 194 6,367.39 195 76.22 196 HOTEL/ MOTEL EXCISE TAX 53,179.97 367 1,789,222.39 410 3,813,528.63 510 70,520.16 516 109,533.47 520 5,648.92 690 1,268,097.36 GRAND TOTAL ALL FUNDS:11,213,597.17$ PAYROLL CLEARING EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT BUSINESS MEDICAL/ DENTAL/ VISION INSURANCE ECONOMIC DEVELOPMENT STADIUM/ CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION UTILITY, WATER/ SEWER RIVERSHORE TRAIL & MARINA MAIN LITTER ABATEMENT REVOLVING ABATEMENT CEMETERY ATHLETIC PROGRAMS ANIMAL CONTROL SENIOR CENTER OPERATING MULTI-MODAL FACILITY C.D. BLOCK GRANT HOME CONSORTIUM GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE ARPA Councilmember A SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET STREET OVERLAY January 16 to January 29, 2025 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved The City Council City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such Richa Sigdel, Deputy City Manager Griselda Garcia, Finance Manager We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 3rd day of February, 2025 that the merchandise or services hereinafter specified have been received and are approved for payment: Page 22 of 150 AGENDA REPORT FOR: City Council January 21, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4561 - Change Order No. 6 Process Water Reuse Facility Phase 2 Construction Contract with Tapani I. ATTACHMENT(S): Resolution Exhibit A - Change Order No. 6 Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: City authorizing 4561, No. the approve to move Resolution I Manager to execute Change Order No. 6 with Tapani, Inc. for the Process Water Reuse Facility Phase 2 Winter Storage Improvements Project. 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 23 of 150 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 Page 24 of 150 required by the state Department of Ecology. These costs include labor, 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. This item was presented to Council at the January 27, 2025, Workshop. 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 25 of 150 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 26 of 150 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 27 of 150 Page 28 of 150 Page 29 of 150 Page 30 of 150 Page 31 of 150 Page 32 of 150 Page 33 of 150 Page 34 of 150 Page 35 of 150 Page 36 of 150 Page 37 of 150 February 3, 2025 Pasco City Council Regular Meeting Pa g e 3 8 o f 1 5 0 PWRF Phase 2 – Change Order No. 6 February 3, 2025 Pasco City Council Pa g e 3 9 o f 1 5 0 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 4 0 o f 1 5 0 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 4 1 o f 1 5 0 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 items 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 4 2 o f 1 5 0 Questions?Pa g e 4 3 o f 1 5 0 AGENDA REPORT FOR: City Council January 29, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4562 - Acceptance of Work for Road 36 Golf Course Irrigation Line Extension I. ATTACHMENT(S): Resolution PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4562, accepting work performed by Big D's Construction of Tri-Cities Inc., under contract for Road 36 Golf Course Irrigation Line Extension Project. 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: Page 44 of 150 CO No.1 $17,940.00: Additional pipe removal along Port of Pasco Property outside of the fenced area of the airport. (Addition) 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 45 of 150 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 46 of 150 February 3, 2025 Pasco City Council Regular Meeting Pa g e 4 7 o f 1 5 0 Acceptance of Construction – Road 36 Irrigation Line Extension Project # 22421 February 3, 2025 Pasco City Council Pa g e 4 8 o f 1 5 0 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 4 9 o f 1 5 0 Before Road 36 Irrigation Line Adjustment 4 Pa g e 5 0 o f 1 5 0 In Progress Road 36 Irrigation Line Adjustment 5 Pa g e 5 1 o f 1 5 0 After Road 36 Irrigation Line Extension 6 Pa g e 5 2 o f 1 5 0 Road 36 Irrigation Line Extension 7 Pa g e 5 3 o f 1 5 0 Questions? 8 Pa g e 5 4 o f 1 5 0 Thank You! Pa g e 5 5 o f 1 5 0 AGENDA REPORT FOR: City Council January 28, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Jesse Rice, Director Parks & Recreation SUBJECT: Resolution No. 4563 - Lease Agreement with INATAI Foundation for Use of City Facilities I. ATTACHMENT(S): Resolution Lease Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: City the authorizing 4563, No. approve to move I Resolution Manager to execute a 28-month lease agreement between INATAI Foundation and the City of Pasco for storage space at 403 W. Lewis St. Pasco, WA. 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 Page 56 of 150 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 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 INATIA Foundation. The INATIA 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 57 of 150 Resolution – Lease Arg for Storage at Post Office - 1 RESOLUTION NO. 4563 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A 28-MONTH LEASE AGREEMENT BETWEEN INATAI 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 INATAI Foundation, for Office Space at 403 W. Lewis, with the first Lease term through May 31, 2027; and WHEREAS, the INATAI 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 INATAI 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 INATAI 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 INATAI 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 58 of 150 Resolution – Lease Arg for Storage at Post Office - 2 PASSED by the City Council of the City of Pasco, Washington, on this 3rd day of February, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 59 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 1 of 14 LEASE AGREEMENT Pasco Post Office - 403 W. Lewis St., Suite A, Pasco, WA 99301 Interior basement Storage - INATAI 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 INATAI 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 60 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI 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 3.3. Security Deposit. Page 61 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 3 of 14 3.3.1. Upon execution of this Lease, Lessee shall deposit the sum equal to one (1) month’s 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. 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 Page 62 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 4 of 14 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. 11. INSURANCE AND INDEMNITY. 11.1. Workers' Compensation. The Lessee must maintain Workers' Compensation insurance in compliance with all applicable statutes. The policy shall also provide Employer's Liability stop gap coverage with limits of not less than $500,000 Bodily Injury each accident, Page 63 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 5 of 14 $500,000 Bodily Injury by disease, policy limit, and $500,000 Bodily Injury by disease, each employee. 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. 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. Page 64 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 6 of 14 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. If the City is a member of a self- insured risk pool membership will satisfy listed requirements. 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 by this Lease or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Lessee. Page 65 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 7 of 14 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 Paragraph 14.1 shall be construed so as to abridge any rights otherwise available to Lessee at law or in equity. Page 66 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 8 of 14 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. 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 Page 67 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 9 of 14 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. 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 Page 68 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 10 of 14 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 passenger 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 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 Page 69 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 11 of 14 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, or his/her designee Parks & Recreation Director 525 N 3rd Ave Pasco, WA 99301 ricej@pasco-wa.gov 16.2.2. For the Lessee: Brandy Dukes, or his/her designee 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 70 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI 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. _______________________________________ 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. _______________________________________ Notary Public in and for the State of Washington Residing at ______________________________ My Commission Expires___________________ Page 71 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI 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 southeast erly 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 72 of 150 403 W Lewis St, Suite A – Lease Agreement INATAI Foundation Page 14 of 14 EXHIBIT B Premises Page 73 of 150 AGENDA REPORT FOR: City Council January 28, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Franklin County Conservation District Presentation (10 minutes) I. ATTACHMENT(S): Presentation Franklin Conservation District Rates & Charges Letters of Support II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation - Kara Kaelber, Manager, Franklin Conservation District III. FISCAL IMPACT: None at this time. IV. HISTORY AND FACTS BRIEF: state of legal a is subdivision District Conservation Franklin The (FCD) government mandated by RCW 89.08 to develop and administer voluntary, non-regulatory natural of and use conservation the for programs wise resources in Franklin County. The FCD was established in 1951 and is governed by a 5-member board of elected and appointed supervisors who establish priorities and set policy. The FCD plays an important role in managing and protecting natural resources in the region. Their main focus is on promoting sustainable land and water use practices, issues supporting environmental conservation, and addressing related to soil health, water quality, and wildlife habitat preservation. In 2001, City of Pasco City Council, opted to be excluded from the FCD. Currently, the City of Pasco contracts specific services with the FCD for Page 74 of 150 educational and outreach needs, both on water conservation and stormwater pollution prevention. This is a long-standing partnership. V. DISCUSSION: Kara Kaelber, Manager, Franklin Conservation District, will present on the district's history and mission and explain the services offered by the district for the conservation of natural resources in the region. Page 75 of 150 Promoting the wise use of natural resources. City of Pasco & Franklin Conservation District Partnership Pa g e 7 6 o f 1 5 0 Promoting the wise use of natural resources. Who we are: Franklin Conservation District (FCD) is a legal subdivision of state government mandated by RCW 89.08 to develop and administer voluntary, non-regulatory programs for the wise use and conservation of natural resources in Franklin County. The FCD was established in 1951 and is governed by a 5-member board of elected and appointed supervisors who establish priorities and set policy.1724 E Superior St. – Pasco Pa g e 7 7 o f 1 5 0 Promoting the wise use of natural resources. History of FCD: •October 2, 1951 – West Franklin Soil Conservation District (excluding incorporated cities and towns) •April 22, 1957 – West Franklin Soil Conservation District (adding territory – no exclusions) •June 25, 1959 – Changing the name of West Franklin Soil Conservation District to the Franklin Conservation District (and adding territory – no exclusions) •May 23, 1972 – Adding the City of Connell •October 29, 2001 –Excluding the City of Pasco Pa g e 7 8 o f 1 5 0 Promoting the wise use of natural resources. Invitation to join the FCD The Franklin Conservation District would like to invite the City of Pasco to become a part of the district. Annexing into the district allows the district to offer the city and its residents: •Current and future programs and services •Educational and financial resources •Technical planning assistance and other benefits Pa g e 7 9 o f 1 5 0 Promoting the wise use of natural resources. What we do: FCD directly supports: •Cooperative, voluntary, and economically feasible solutions to environmental problems •Project-dependent financial assistance •Educating youth through hands -on science inquiry about water and soil quality and conservation issues Healthy Lands = Healthy Communities = Healthy People Pa g e 8 0 o f 1 5 0 Promoting the wise use of natural resources. Programs & Services: Water Rights: FCD has provided technical assistance to water right applications and transfers since 1999. 78 of 202 applications have been from the City of Pasco. Pa g e 8 1 o f 1 5 0 Promoting the wise use of natural resources. Programs & Services: Shrub Steppe Mitigation: •Franklin CD manages funds for shrub - steppe mitigation agreements mandated for developers affecting shrub -steppe habitats. •CD collaborates with the City of Pasco and WDFW to establish agreements that will function as a shrub-steppe mitigation bank, assisting developers in offsetting impacts from future projects. Pa g e 8 2 o f 1 5 0 Promoting the wise use of natural resources. Programs & Services: Heritage Gardens: •Assist landowners in creating water - wise landscapes and gardens that incorporate native plants of Washington State. •Promote water conservation. •Heritage Gardens also honor the unique natural and cultural features of the Columbia River Basin. Pa g e 8 3 o f 1 5 0 Promoting the wise use of natural resources. Programs & Services: Education & Outreach: •Salmon in the Classroom •Wheat Week •Drain Rangers & Jr. Drain Rangers •High School STEM Academy •Workshops & Farm Tours •Community Events Pa g e 8 4 o f 1 5 0 Promoting the wise use of natural resources. How we do our work: The Franklin Conservation District is funded through a variety of interlocal agreements, grant funding, and a system of local funding called rates & charges. For every $1.00 of local funds the district leverages that to $20.00 of grant funding to bring back to the community. 74% 7% 3% 4% 12% FCD Funding ILA Grants Fee for Service Local Funding Shreb Steppe Mitigation Pa g e 8 5 o f 1 5 0 Promoting the wise use of natural resources. Rates & Charges Local funding makes up ~4% of FCD’s revenue. This number is decreasing with the loss of agriculture lands due to urban development. How lands are assessed by the County on a yearly basis: Rangeland: $1.00 per parcel + $0.01 per acre Dryland: $2.00 per parcel + $0.02 per acre Irrigated: $5.00 per parcel + $0.10 per acre Incorporated: $5.00 per parcel +$0.10 per acre 74% 7% 3% 4% 12% FCD Funding ILA Grants Fee for Service Local Funding Shreb Steppe Mitigation Pa g e 8 6 o f 1 5 0 Promoting the wise use of natural resources. How the City of Pasco can help: Including the City of Pasco into the Franklin Conservation District would allow the FCD to: •Continue to offer programs and services to City residents •INCREASE our services and opportunities to City residents and offer NEW services and opportunities.69% 6% 3% 11% 11% FCD FUNDING ILA Grants Fee for Service Local Funding Shreb Steppe Mitigation Pa g e 8 7 o f 1 5 0 Promoting the wise use of natural resources. Questions?Pa g e 8 8 o f 1 5 0 Franklin Conservation District Proposed System of Rates and Charges for Natural Resource Protection Rates and Charges Authorization (RCW 89.08.405) System: 10-year authorization for land classes within the Franklin Conservation District Boundary. Irrigated Lands (includes rural home sites) = $5.00/parcel, plus $0.10/acre for all parcels Dryland = $2.00/parcel, plus $0.02/acre for all parcels Range Lands = $1.00/parcel, plus $0.01/acre for all parcels Incorporated Lands = $5.00/parcel, plus $.10/acre for all parcels Franklin County: (Excluding City of Pasco) Estimated Parcels and Acreages Current (annual) 5,928 Irrigated Parcels @ 259,129 Acres $55,553 712 Dryland Parcels @ 214,332 Acres $5,711 1,167 Rangeland Parcels @ 176,091 Acres $2,928 1,800 Incorporated Parcels @ 15,447 Acres $10,545 Total $74,737 Franklin County: (Including City of Pasco) Estimated Parcels and Acreages Proposed (annual) 5,928 Irrigated Parcels @ 259,129 Acres $55,553 712 Dryland Parcels @ 214,332 Acres $5,711 1,167 Rangeland Parcels @ 176,091 Acres $2,928 25,385 Incorporated Parcels @ 36,598 Acres $130,585 Total $194,777 Note: Number of Eligible Parcels and Acreages above were calculated by the Franklin Conservation District. Actual values will be calculated by the Franklin County Assessor’s Office. The Rates and Charges will be billed to the taxpayer by the County Treasurer with property taxes, and will be due on the same schedule. Page 89 of 150 Franklin Conservation District Proposed Budget January 1, 2025, through December 31, 2025 Estimated Yearly Revenue Income from Natural Resource Rates and Charges $194,777 State or Local Grants/Projects $1,322,040 Estimated Total Income $1,516,817 Estimated Yearly Expenses Object Rates and Charges Grants Total District Management, Fiscal Management • Franklin Co. Water Conservancy Board • Shrub Steppe Mitigation • Grant writing $10,000 $200,000 $210,000 Education Programs • Education Staff • Education Projects o Wheat Week o Salmon in the Classroom o Drain Rangers/Jr. Drain Rangers o STEM Academy o Teacher Workshops $20,000 $370,000 $180,000 $370,000 $200,000 Technical Assistance Programs • Technical Staff (Resource Conservationist, VSP Coordinator, Research & Monitoring Coordinator, Outreach Specialist, etc.) • Cost-Share to Land Owners to Implement Best Management Practices • Contracted Services $45,000 $50,000 $289,000 $100,000 $40,000 $334,000 $150,000 $40,000 Heritage Garden Program • Heritage Garden Program Coordinator • Cost-Share to homeowners to implement low water landscaping • Outreach/Education (workshops, demonstrations gardens, etc.) $20,000 $15,000 $14,000 $25,000 $45,000 $15,000 $14,000 City of Pasco Special Natural Resource Projects* Equipment Purchase and Replacement $6,000 $28,000 $34,000 Travel / Mileage $8,000 $45,000 $53,000 Office Space and Supplies $6,777 $45,040 $52,817 Totals $194,777 $1,322,040 $1,516,817 *Rates & Charges budget could be adjusted to accommodate Special Natural Resource Projects developed in partnership between the FCD and City of Pasco. Page 90 of 150 September 2, 2024 To Whom it May Concern: I am writing this letter to show my utmost support and appreciation for the Franklin Conservation District and the education al programs my students and I have benefited from. I have participated in over 20 years of programming that has always been offered for FREE to all students in the Pasco School District. Salmon in the Classroom is a rite of passage for 4 th graders. They can’t wait until they’re old enough to raise salmon, participate in dissections, and finally release them in the river. And once they leave 4th grade and I run into former students they always ask if we still raise salmon. Each January we receive 200 salmon eggs to raise and care for until May. While we have them, we track water quality data, learn about different species, explore their anatomy, understand the importance to Native tribes, study impacts to our region, participate in radio telemetry (scientists tracking their migration patterns and behaviors) virtually or in person, and discuss social dilemmas involving the dams . These real-life topics and experiences are not only incredibly engaging and exciting for students to take part in, but they support so many of our science, social studies, math and language arts standards. The Franklin Conservation District supports the teachers with the large tank and necessary supplies, carcasses for dissection, student materials, and professional development opportunities. The staff also designs and facilitates a phenomenal culminating experience called the Salmon Celebration at Sacajawea Park. Each school gets their own day filled with rotations including a salmon release, active play emulating the salmons’ experience, bird watching, an art project reflecting the salmon life cycle, salmon tagging with local scientists, a visit to the Sacajawea Interpretive Center and tour of the famous Maya Lin Story Circles art installment where Lewis & Clark once rendezvoused with local Native Americans. Students and parent volunteers who have joined us have always been very impressed and appreciative of the Franklin Conservation District and what they offer students. I have also had the privilege of participating in Wheat Week, which partners beautifully with Salmon in the Classroom and several of our grade level science kits. Franklin Conservation District instructors come in to classrooms for an hour a day for a week and teach students about wheat and its importance in our region, all the products we consume using wheat, erosion, the water cycle, plant DNA, crossbreeding plants to get new varieties, and the global impact our region makes on the rest of the world with our wheat. They also learn about scientists who have curbed hunger in parts of the world Page 91 of 150 September 2, 2024 using agricultural techniques to solve problems. Students do a hands -on activity each day and have highly engaging instructors and materials. They are regularly adding and improving their presentations each year to make them even better and provide all student materials. I have colleagues who have participated in the other programs offered by the Franklin Conservation District and there is one consensus. These are high-quality programs that support grade level standards and have a high-level of engagement for students. This is a great way for our schools to connect with the community and its resources. These programs are a great asset with no cost to the district, school, teachers or students and families. Please help support the continuation of these programs and the great staff that makes them happen. Sincerely, Beth Austin 4th grade teacher, Ruth Livingston Elementary Page 92 of 150 Page 93 of 150 Page 94 of 150 Pasco City Council 525 N. 3rd Ave. Pasco, WA 99301 Dear Members of the Pasco City Council, We are writing to express our strong support for the Franklin Conservation District’s request to annex the City of Pasco into their district. As residents we benefit from their services, including the Heritage Gardens program, we believe their annexation would provide substantial value to our community. From 2000-06, Franklin Conservation District (FCD) facilitated Jenny’s adoption of the Salmon in the Classroom program. This provided the basis for an enduring collaborative attitude toward community endeavors. We shared teacher trainings to focus on environmental and sustainability education, always supporting and learning from one another. As a natural extension, we have adopted a mindset of converting our acre into a water- wise sustainable mix of gardens that reflect local natural beauty and provide some habitat for wildlife. FCD has been very supportive of our efforts to learn about native plants, their selection and cultivation. Committed to demonstrating and promoting conservation practices, FCD benefits individuals, neighborhoods, and the entire community. By annexing the City of Pasco into the District, our residents would gain greater access to these invaluable resources and services. This inclusion would promote sustainable land use practices, improve water quality, and encourage the responsible stewardship of our natural resources- initiatives that are essential for the long-term health and well-being of our community. We urge the City Council to approve the Franklin Conservation District’s request for annexation. Expanding their reach into Pasco would provide our residents with more opportunities to engage in conservation efforst and learn about sustainable practices, ultimately making our city a more resilient place to live. Thank you for considering our support for this important initiative. Sincerely, Jenny & Pete Rieke 9104 Pooler Street Pasco, WA 99301 Page 95 of 150 913 Rd 54 Pasco, Wa 99301 Pasco City Council 525 N 3rd Ave Pasco, WA 99301 Dear Members of the Pasco City Council, I am writing to express my strong support for the Franklin Conservation District's request to annex the City of Pasco into their district. As a resident who has greatly benefited from their services, particularly the Heritage Garden program, I believe this annexation would provide substantial value to our community. The Heritage Garden program has been an invaluable resource for me. When I decided to create a water-wise, sustainable garden that reflects our region's natural beauty, the Franklin Conservation District was incredibly easy to work with and provided a wealth of knowledge and support. Their staff members were always prompt, professional, and eager to assist, offering practical advice on native plants and sustainable gardening practices. This guidance helped me establish a beautiful and thriving garden that conserves water and supports local wildlife. My neighbors have been curious about what I was doing. When the plants were just planted I had flags to show where the plants were. The neighbors were wondering what I was doing. Now that flowers are blooming, I get nothing but complements and questions about the process. The Heritage Garden program has supported me when I needed advice. I could not have done this on my own. Moreover, the Franklin Conservation District has demonstrated a commitment to promoting conservation practices that benefit both individuals and the community as a whole. By annexing the City of Pasco into the District, our residents would gain greater access to these invaluable resources and services. This inclusion would promote sustainable land use practices, improve water quality, and encourage the responsible stewardship of our natural resources—initiatives that are essential for the long-term health and well-being of our community. I urge the City Council to approve the Franklin Conservation District's request for annexation. Expanding their reach into Pasco would provide our residents with more opportunities to engage in conservation efforts and learn about sustainable practices, ultimately making our city a more resilient place to live. Thank you for considering my support for this important initiative. Sincerely, Alice Allison Page 96 of 150 Page 97 of 150 AGENDA REPORT FOR: City Council January 23, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Maria Serra, Director Public Works SUBJECT: *Resolution No. 4564 - Acceptance of Work for Broadmoor Area Tax Increment Financing Improvements Utility Package Phase 1B Project (5 minutes) I. ATTACHMENT(S): Resolution Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:the accepting 4564, No. I approve to move work Resolution performed by Goodman & Mehlenbacher Enterprises, Inc., under contract for the Broadmoor Area Tax Increment Financing (TIF) Improvements – Utility Package Phase 1B project. III. FISCAL IMPACT: Total payment was made to Goodman & Mehlenbacher Enterprises, Inc., of Kennewick, Washington in the amount of $4,549,159.26. This project was funded with Utility funds from the City of Pasco IV. HISTORY AND FACTS BRIEF: The construction contract for the Broadmoor Area Tax Increment Financing (TIF) Improvements – Utility Package Phase 1B project was awarded by Council via Resolution No. 4365 to Goodman & Mehlenbacher Enterprises, Inc., the of amount in 2023, 21, August on Washington, Kennewick, of $4,499,476.43. The project is now complete and was constructed per project specifications. There were four change orders, including the final reconciliation change cost construction final The was totaled that order, $49,682.83. $4,549,159.26. Page 98 of 150 Formal acceptance of public works projects is required by State law and start 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 City Council's acceptance of the Broadmoor Area Tax Increment Financing (TIF) Improvements – Utility Package Phase 1B project as constructed by Goodman & Mehlenbacher Enterprises, Inc. of Kennewick, Washington. Page 99 of 150 Resolution – Broadmoor TIF-Utility Package Project Acceptance- 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY GOODMAN & MEHLENBACHER ENTERPRISES, INC., UNDER CONTRACT FOR THE BROADMOOR AREA TAX INCREMENTS FINANCING (TIF) IMPROVEMENTS - UTILITY PACKAGE PROJECT. WHEREAS, the work performed by Goodman & Mehlenbacher Enterprises, Inc, under contract for Project No. 22 377 Phase 1-B 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 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 Goodman & Mehlenbacher Enterprises, Inc., under contract for Project No. 22 377 Phase 1-B 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. Page 100 of 150 Resolution – Broadmoor TIF-Utility Package Project Acceptance- 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 101 of 150 February 3, 2025 Pasco City Council Regular Meeting Pa g e 1 0 2 o f 1 5 0 Broadmoor TIF Imps - Utility Package Phase 1B Project Acceptance February 3, 2025 Pasco City Council Pa g e 1 0 3 o f 1 5 0 Broadmoor TIF Improvements -Utility Package 3 Before After Pa g e 1 0 4 o f 1 5 0 Broadmoor TIF Improvements - Utility Package 4 Pa g e 1 0 5 o f 1 5 0 Broadmoor TIF Improvements - Utility Package 5 CONSTRUCTION COSTS Engineer’s Estimate $7,009,801.50 Bid Award $4,499,476.43 Project Change Orders $73,632.82 Project Closeout Reconciliation ($23,949.99) Final Construction Contract Total $4,549,159.26 Pa g e 1 0 6 o f 1 5 0 Questions?Pa g e 1 0 7 o f 1 5 0 AGENDA REPORT FOR: City Council January 29, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Maria Serra, Director Public Works SUBJECT: *Resolution No. 4565 - Bid Award for Broadmoor Area Tax Increment Financing Improvements - Sandifur Pkwy/Rd 108 Extension Project (5 minutes) I. ATTACHMENT(S): Resolution Power Point Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4565, awarding bid for Project No. 23 552 for the Sandifur Pkwy/Rd 108 Extension Project to Culbert Construction of Pasco, Washington and, further, authorize the City Manager to execute the contract documents. III. FISCAL IMPACT: Construction Contract: $7,223,296.20 Funding is provided by Utility Rates and Tax Increment Financing. The Share Proportionate the and Adopted Biennial 2023-2024 Budget Contributions received provide the funding to cover design, construction, and construction management/administration costs. IV. HISTORY AND FACTS BRIEF: The Broadmoor area has the opportunity, if developed properly, to serve as a significant economic engine for the Pasco community providing for increased tax revenues to support City services and provide significant employment opportunities for the residents of Pasco. In addition to the economic stimulus, the development of the Broadmoor area will provide the necessary residential units to meet the demands of the population growth projected for the area by Page 108 of 150 the State of Washington. The Washington State Legislature, during its 2021 legislative session, enacted “AN ACT Relating to tax increment financing” and codified as RCW 39.114 (the “TIF” Act), which authorizes local governments, including cities, to carry out tax increment financing of the public improvements needed to support vital private economic development projects. Tax Increment Financing (TIF) is a program that allocates revenues generated from the increased assessed valuation of properties improved by private development that are within a designated Tax Increment Area (TIA) to pay for public improvements that are needed to support development. Council adopted Ordinance No. 4618, on October 31, 2022, designating a specific TIF area of approximately 671 acres in the Broadmoor area. The Sandifur Pkwy/Rd 108 Extension project fall within the scope of allowable work as defined by Section 4 of Ordinance No. 4618. The Phase 1A which is now complete, provided for rough grading for the alignments of Road 108, Sandifur Parkway and a utility corridor, in anticipation of the construction of utilities and roadways, in subsequent phases. The Phase 1B Utility Package Phase project is now complete. The goal of this project was to install critical utility infrastructure backbone that serves the entire Broadmoor Area. The alignments of these utilities were selected to allow one of the future planned phases to construct arterials and collectors that will make up the heart of the transportation grid in this area. This third phase of the Broadmoor TIF improvements, which is still in deficiencies current addresses and near and construction completion, accommodates future traffic projections at the intersection of Broadmoor and Burns, which is a key access point to the Broadmoor area. There are two new public schools to the east that use this intersection as an access point as well. This project will provide a signalized intersection, dedicated turn lanes, and multi-modal considerations intended to both raise the vehicular level of service and provide a safe environment for pedestrians and bicyclists. The fourth phase of the Broadmoor TIF improvements, which is currently in construction, accommodates future traffic projections along the Broadmoor corridor between Nottingham Drive and Sandifur Boulevard. Improvements are proposed and at the intersections of Broadmoor/Sandifur Parkway Broadmoor/Buckingham Drive, as well as widening of the corridor. The project will provide a new signalized intersection, dedicated turn lanes, and multi- modal considerations throughout the Broadmoor corridor. Page 109 of 150 V. DISCUSSION: The Sandifur Pkwy/Rd 108 Extension project is the fifth phase of the Broadmoor TIF improvements. This project will provide road infrastructure by extending Sandifur Pkwy to Rd 108 and constructing Rd 108 from Burns Rd, on the north end, to Harris Rd, on the south end. The project will provide signalized intersections at Rd 103 and Rd 105 and provide multi-modal considerations throughout the new corridor. The Sandifur Pkwy/Rd 108 Extension project was advertised for bids on Wednesday, December 18, 2024. On January 22, 2025, a public bid opening was held at 2:00 PM. A total of nine (9) bids were received. The lowest responsible, responsive bidder was Culbert Construction of Pasco, Washington, in the amount of $7,223,296.20. The Engineer's Estimate is $11,262,806.55. The second lowest bid was submitted by Premier Excavation in the amount of $7,318,483.27. The Engineer of Record, PBS Engineering & Environmental Inc, and City staff completed the review of the bid submittal, and no exemptions or irregularities were found. City staff recommends award of the contract for the Broadmoor Area TIF – Sandifur Pkwy/Rd 108 Extension project to Culbert Construction of Pasco, Washington, in the amount of $7,223,296.20. Page 110 of 150 Resolution - Sandifur Pkwy/Rd 108 Extension Project- 1 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON. AWARDING BID FOR PROJECT NO. 23 552 FOR THE SANDIFUR PKWY/RD 108 EXTENSION PROJECT TO CULBERT CONSTRUCTION, OF PASCO, WASHINGTON; AND FURTHER, AUTHORIZE THE INTERIM CITY MANAGER TO EXECUTE THE CONTRACT DOCUMENTS. WHEREAS, the City of Pasco (City) identified the Sandifur Pkwy/Rd 108 Extension Project in the Approved Capital Improvement Plan; and WHEREAS, this Contract provides for new roadways, dedicated turn lanes, utilities, and multi-modal transportation accommodations in the form of sidewalks and a multi-use path; and WHEREAS, the City solicited sealed public bids for this project, identified as the Sandifur Pkwy/Rd 108 Extension Project; and WHEREAS, on January 22, 2025, at 2:00 p.m., nine (9) bids were received and opened by the City; and WHEREAS, the lowest responsive bidder was Culbert Construction, with a bid of $7,223,296.20, the Engineer’s Estimate was $11,262,806.55; and WHEREAS, the bid documentation was reviewed, and the bidder was determined to be responsible and responsive. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City hereby awards the Sandifur Pkwy/Rd 108 Extension Project to Culbert Construction, of Pasco, WA, in the amount of $7,223,296.20, and further authorizes the Interim City Manager to execute the Contract documents. Be It Further Resolved that this Resolution shall take effect and be in full force immediately upon passage by the City Council. PASSED by the City Council of the City of Pasco, Washington, on this 3rd day of February, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 111 of 150 February 3, 2025 Pasco City Council Regular Meeting Pa g e 1 1 2 o f 1 5 0 Sandifur Pkwy/Rd 108 Extension February 3, 2025 Pasco City Council Pa g e 1 1 3 o f 1 5 0 Sandifur Pkwy/Rd 108 Extension Project Pa g e 1 1 4 o f 1 5 0 •The City solicited public bids for this project on December 18, 2024, bids were opened on January 22, 2025. •Nine (9) bids were received, the lowest responsible bidder was Culbert Construction in the amount of $7,223,296.20. •The Engineer’s estimate for this project was $11,262,806.55. •City Staff reviewed the bid submittal and found no exemptions or irregularities. Staff recommends award of the Contract to Culbert Construction Sandifur Pwky/Rd 108 Extension Project 4 Pa g e 1 1 5 o f 1 5 0 Sandifur Pkwy/Rd 108 Extension Project 5 Pa g e 1 1 6 o f 1 5 0 Sandifur Pkwy/Rd 108 Extension Project 6 Pa g e 1 1 7 o f 1 5 0 Questions? 7 Pa g e 1 1 8 o f 1 5 0 Pa g e 1 1 9 o f 1 5 0 AGENDA REPORT FOR: City Council January 30, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Resolution No. 4566 - Authorizing the Interim City Manager to Execute Purchase and Sale Agreement to Purchase 321 W Lewis St (5 minutes) I. ATTACHMENT(S): Presentation Resolution Purchase and Sale Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4566, ratifying the purchase and sale agreement with West Pasco LLC for purchase of 321 West Lewis Street, Pasco, WA. III. FISCAL IMPACT: Purchase Price - $103,000 IV. HISTORY AND FACTS BRIEF: The City has been leasing the property located at 321 West Lewis Street for approximately 15 years. The facility currently serves as the operational base for the City’s Graffiti Abatement Program, which plays a key role in maintaining clean and safe public spaces. A portion of the property is also subleased to another public agency for community programming, further supporting local services and engagement. Under the terms of the lease, the City is responsible for property taxes and maintenance, After payment. rental monthly the to addition in $1,200 purchasing evaluating long-term costs, the City has determined that the property is a financially responsible investment that will enhance operational efficiency while reducing long-term expenses. The acquisition is being made Page 120 of 150 well below market value, and based on the current lease payments, the City will recover its investment within approximately eight years. The building was last remodeled in 1995, abatement for lead paint and asbestos was completed. Staff report the building to be in great condition. Owning the property will ensure continued support for essential municipal services, provide long-term cost savings, and allow for future improvements to better serve the community. Additionally, securing this location aligns with the City’s efforts to invest in infrastructure, strengthen economic sustainability, and enhance the overall quality of life for residents. V. DISCUSSION: Staff recommends approval of the Resolution ratifying the Purchase and Sale Agreement for the purchase of 123 W Lewis Street as it advantageous to the City and meets Council's goals. Page 121 of 150 February 3rd, 2025 Pasco City Council Regular Pa g e 1 2 2 o f 1 5 0 Purchase of 321 W Lewis St February 3rd, 2025 Pasco City Council Pa g e 1 2 3 o f 1 5 0 Details Policy Decision 01 02 Pa g e 1 2 4 o f 1 5 0 Details 4 Pa g e 1 2 5 o f 1 5 0 Body copy Property Purchase – 321 W Lewis Street 5 Pa g e 1 2 6 o f 1 5 0 Layout: •Main Space: Approx. 3493 sf •Basement: Approx. 900 sf •Approx. 0.16 acres Financial Information: •Price: $105,000 •Approx. $23.90 per square foot •Franklin County Assessor Value: $269,100 Condition: •Remodel in 1995 •Lead and Asbestos abated Details 6 Pa g e 1 2 7 o f 1 5 0 Current Lease Agreement & Costs •The City has leased the property for 15 years at a cost of $1,200 per month •Currently, the City also covers property taxes and maintenance. •Investment Recovery: Approx. 8 years Details 7 City Use of the Property •Services as the operation base for the Graffiti Abatement Team •A portion of the property is subleased to a public agency for community programming •Ownership of this facility will allow for future improvements and operational flexibility Pa g e 1 2 8 o f 1 5 0 Policy Decision 8 Pa g e 1 2 9 o f 1 5 0 1.Formally approve the purchase of 123 W Lewis Street 2.Authorized the Interim City Manager to complete the transaction in accordance with the Purchase and Sale Agreement Policy Decision 9 Pa g e 1 3 0 o f 1 5 0 Pa g e 1 3 1 o f 1 5 0 Resolution – Purchase and Sales Agreement 321 W Lewis St - 1 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, RATIFYING THE PURCHASE AND SALE AGREEMENT WITH WEST PASCO LLC FOR PURCHASE OF 321 WEST LEWIS STREET, PASCO, WA. WHEREAS, the City of Pasco (City) currently leases the property located at 321 West Lewis Street for municipal administration purposes; and WHEREAS, acquiring the property will provide long-term stability, reduce leasing costs, and ensure continued availability of space to support municipal operations; and WHEREAS, West Pasco LLC have authorized the sale of their property for the amount of one hundred and three thousand dollars ($103,000); 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 Purchase and Sale Agreement with West Pasco LLC for the purchase of 321 West Lewis Street. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the Purchase and Sale Agreement between the City of Pasco and West Pasco LLC as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the Purchase and Sale Agreement signed by the City Manager is hereby ratified on behalf of the City of Pasco; and the Interim City Manager is hereby authorized to take all steps required to complete the sale; and to make minor substantive changes necessary to execute the Agreement. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this 3rd day of February, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 132 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |1 15 SPECIFIC TERMS Reference Date: January 8, 2025 Offer Expiration Date: January 15, 2025 5:00pm 1.PROPERTY: The Property is legally described on Exhibit A. Address: 321 W. Lewis St City of Pasco, Franklin County, Washington. Tax Parcel No(s): 112.034.263 Included Personal Property: X None; If on and used in connection with the Property, per Section 25 (None, if not completed). 2.BUYER(S): City of Pasco 3.SELLER(S): West Pasco LLC 4.PURCHASE PRICE: $ 103,000 Payable as: X Cash; Financing (Form PS_FIN attached); Other 5.EARNEST MONEY: $ 5,000 Dollars; Held by Closing Agent Form of Earnest Money: Check; X Wire Transfer; Note; Other Earnest Money Due Date: X 5 days after Mutual Acceptance; days after satisfaction of Feasibility Contingency; or 6.FEASIBILITY CONTINGENCY DATE: 0 days after Mutual Acceptance 7.CLOSING DATE: on or before February 1, 2025 8.CLOSING AGENT: Ticor Title | Patty Sweetwood 9.TITLE INSURANCE COMPANY: Ticor Title 10. DEED: X Statutory Warranty Deed; or Bargain and Sale Deed 11.POSSESSION: X on closing; Other: 12. SELLER CITIZENSHIP (FIRPTA): Seller is; X is not a foreign person for the purposes of US income taxation. 13. BUYER’S DEFAULT: X Forfeiture of Earnest Money; Seller’s Election of Remedies 14. SELLER’S DEFAULT: X Recover Earnest Money or Specific Enforcement; Buyer’s Election of Remedies 15. UNPAID UTILITIES: Buyer and Seller Don Not Waive (Form UA attached); X Waive 16. AGENCY DISCLOSURE: Selling Broker represents: X Buyer; Seller; both parties Listing Broker represents: Seller; both parties 17.BUYER BROKERAGE FIRM COMPENSATION: % of sale price or $ 3,000 Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 133 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |2 15 18.EXHIBITS AND ADDENDA. The following Exhibits and Addenda are made a part of this Agreement: Earnest Money Promissory Note Back-Up Addendum Blank Promissory Note Vacant Land Addendum Blank Short Form Deed of Trust Financing Addendum Blank Deed of Trust Rider Tenant Estoppel Certificate(s) Utility Charges Addendum Defeasance Addendum FIRPTA Certification Lead-Based Paint Disclosure Assignment and Assumption X Exhibit A: Legal Description Addendum/Amendment X Exhibit B: Additional Terms 19. IDENTIFICATION OF THE PARTIES. The following is the contact information for the parties involved in this Agreement: Buyer Seller Contact: Richa Sigdel Contact: Leonard Dietrich Address: 523 N. 3rd Ave. Address: PO Box 2267 Pasco, WA 99301 Pasco, WA 99301 Phone: 509.544.3060 Phone: 509.521.6848 Email: sigdelr@pasco-wa.gov Email: 2lendietrich@gmail.com Selling Firm Listing Firm Name: SVN | Retter & Company Name: NONE Listing Broker: Rob Ellsworth Selling Broker: Address: 329 N. Kellogg St. Address: Kennewick, WA 99336 Phone: 509.430.2378 Phone: Email: Rob@RobEllsworth.com Email: Firm Lic. #: 20279 Firm Lic. #: Broker Lic. #: 17790 Broker Lic. #: Copy of Notices to Buyer to: Copy of Notices to Seller to: Name: Name: Company: Company: Address: Address: Phone: Phone: Email: Email: 20. Purchase and Sale. Buyer agrees to buy and Seller agrees to sell the commercial real estate identified in Section 1 as the Property and all improvements thereon. Unless expressly provided otherwise in this Agreement or its Addenda, the Property shall include (i) all of Seller’s rights, title and interest in the Property, (ii) all easements and rights appurtenant to the Property, (iii) all buildings, fixtures, and improvements on the Property, (iv) all unexpired leases and subleases; and (v) all included personal property. 21. Acceptance; Counteroffers. If this offer is not timely accepted, it shall lapse and the earnest money shall be refunded to Buyer. If either party makes a future counteroffer, the other party shall have until 5:00 p.m. on the day (if not filled in, the second day) following receipt to accept the counteroffer, unless sooner withdrawn. If the counteroffer is not timely accepted or countered, this Agreement shall lapse and the earnest money shall be refunded to Buyer. No Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 134 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |3 15 acceptance, offer or counteroffer from Buyer is effective until a signed copy is received by Seller, the Listing Broker or the licensed office of the Listing Broker. No acceptance, offer or counteroffer from Seller is effective until a signed copy is received by Buyer, the Selling Broker or the licensed office of the Selling Broker. "Mutual Acceptance" shall occur when the last counteroffer is signed by the offeree, and the fully-signed counteroffer has been received by the offeror, his or her broker, or the licensed office of the broker. If any party is not represented by a broker, then notices must be delivered to that party and shall be effective when received by that party. 22. Earnest Money. Selling Broker and Selling Firm are authorized to transfer Earnest Money to Closing Agent as necessary. Selling Firm shall deposit any check to be held by Selling Firm within 3 days after receipt or Mutual Acceptance, whichever occurs later. If the Earnest Money is to be held by Selling Firm and is over $10,000, it shall be deposited to: the Selling Firm's pooled trust account (with interest paid to the State Treasurer); or a separate interest bearing trust account in Selling Firm's name, provided that Buyer completes an IRS Form W-9 (if not completed, separate interest bearing trust account). The interest, if any, shall be credited at closing to Buyer. If this sale fails to close, whoever is entitled to the Earnest Money is entitled to interest. Unless otherwise provided in this Agreement, the Earnest Money shall be applicable to the Purchase Price. 23. Title Insurance. a. Title Report. Seller authorizes Buyer, its Lender, Listing Broker, Selling Broker or Closing Agent, at Seller’s expense, to apply for and deliver to Buyer a standard coverage owner’s policy of title insurance from the Title Insurance Company. Buyer shall have the discretion to apply for an extended coverage owner’s policy of title insurance and any endorsements, provided that Buyer shall pay the increased costs associated with an extended policy including the excess premium over that charged for a standard coverage policy, the cost of any endorsements requested by Buyer, and the cost of any survey required by the title insurer. If Seller previously received a preliminary commitment from a title insurer that Buyer declines to use, Buyer shall pay any cancellation fee owing to the original title insurer. Otherwise, the party applying for title insurance shall pay any title cancellation fee, in the event such a fee is assessed. b. Permitted Exceptions. Buyer shall notify Seller of any objectionable matters in the title report or any supplemental report within the earlier of: (a) days (20 days if not completed) after receipt of the preliminary commitment for title insurance; or (b) the Feasibility Contingency Date. This Agreement shall terminate and Buyer shall receive a refund of the earnest money, less any costs advanced or committed for Buyer, unless within five (5) days of Buyer’s notice of such objections Seller shall give notice, in writing, of its intent to remove all objectionable provisions before Closing. If Seller fails to give timely notice that it will clear all disapproved objections, this Agreement shall automatically terminate and Buyer shall receive a refund of the earnest money, less any costs advanced or committed for Buyer, unless Buyer notifies Seller within three (3) days that Buyer waives any objections which Seller does not agree to remove. If any new title matters are disclosed in a supplemental title report, then the preceding termination, objection and waiver provisions shall apply to the new title matters except that Buyer’s notice of objections must be delivered within three (3) days of receipt of the supplemental report by Buyer and Seller’s response or Buyer’s waiver must be delivered within two (2) days of Buyer’s notice of objections. The Closing Date shall be extended to the extent necessary to permit time for these notices. Buyer shall not be required to object to any mortgage or deed of trust liens, or the statutory lien for real property taxes, and the same shall not be deemed to be Permitted Exceptions; provided, however, that the lien securing any financing which Buyer has agreed to assume shall be a Permitted Exception. Except for the foregoing, those provisions not objected to or for which Buyer waived its objections shall be referred to collectively as the “Permitted Exceptions.” Seller shall reasonably cooperate with Buyer and the title company to clear objectionable title matters and shall provide an Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 135 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |4 15 affidavit containing the information and reasonable covenants requested by the title company. The title policy shall contain no exceptions other than the General Exclusions and Exceptions common to such form of policy and the Permitted Exceptions. c. Title Policy. At Closing, Buyer shall receive an ALTA Form 2006 Owner’s Policy of Title Insurance with standard or extended coverage (as specified by Buyer) dated as of the Closing Date in the amount of the Purchase Price, insuring that fee simple title to the Property is vested in Buyer, subject only to the Permitted Exceptions (“Title Policy”), provided that Buyer acknowledges that obtaining extended coverage may be conditioned on the Title Company’s receipt of a satisfactory survey paid for by Buyer. If Buyer elects extended coverage, then Seller shall execute and deliver to the Title Company on or before Closing the such affidavits and other documents as the Title Company reasonably and customarily requires to issue extended coverage. 24. Feasibility Contingency. Buyer’s obligations under this Agreement are conditioned upon Buyer's satisfaction, in Buyer’s sole discretion, concerning all aspects of the Property, including its physical condition; the presence of or absence of any hazardous substances; the contracts and leases affecting the Property; the potential financial performance of the Property; the availability of government permits and approvals; and the feasibility of the Property for Buyer's intended purpose. This Agreement shall terminate and Buyer shall receive a refund of the earnest money unless Buyer gives notice that the Feasibility Contingency is satisfied to Seller before 5:00pm on the Feasibility Contingency Date. If such notice is timely given, the feasibility contingency shall be deemed to be satisfied and Buyer shall be deemed to have accepted and waived any objection regarding any aspects of the Property as they exist on the Feasibility Contingency Date. a. Books, Records, Leases, Agreements. Within 3 days (3 days if not filled in) Seller shall deliver to Buyer or post in an online database maintained by Seller or Listing Broker, to which Buyer has been given unlimited access, true, correct and complete copies of all documents in Seller’s possession or control relating to the ownership, operation, renovation or development of the Property, excluding appraisals or other statements of value, and including the following: statements for real estate taxes, assessments, and utilities for the last three years and year to date; property management agreements and any other agreements with professionals or consultants; leases or other agreements relating to occupancy of all or a portion of the Property and a suite-by-suite schedule of tenants, rents, prepaid rents, deposits and fees; plans, specifications, permits, applications, drawings, surveys, and studies; maintenance records, accounting records and audit reports for the last three years and year to date; any existing environmental reports; any existing surveys; any existing inspection reports; and “Vendor Contracts” which shall include maintenance or service contracts, and installments purchase contracts or leases of personal property or fixtures used in connection with the Property. Buyer shall determine by the Feasibility Contingency Date: (i) whether Seller will agree to terminate any objectionable Vendor Contracts; and (ii) whether Seller will agree to pay any damages or penalties resulting from the termination of objectionable Vendor Contracts. Buyer’s waiver of the Feasibility Contingency shall be deemed Buyer’s acceptance of all Vendor Contracts which Seller has not agreed in writing to terminate. Buyer shall be solely responsible for obtaining any required consents to such assumption and the payment of any assumption fees. Seller shall cooperate with Buyer's efforts to receive any such consents but shall not be required to incur any out-of-pocket expenses or liability in doing so. Any information provided or to be provided by Seller with respect to the Property is solely for Buyer’s convenience and Seller has not made any independent investigation or verification of such information (other than that the documents are true, correct, and complete, as stated above) and makes no representations as to the accuracy or completeness of such information, except to the extent expressly provided otherwise in this Agreement. Seller shall transfer the Vendor Contracts as provided in Section 25. b. Access. Seller shall permit Buyer and its agents, at Buyer's sole expense and risk, to enter the Property at reasonable times subject to the rights of and after legal notice to tenants, to Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 136 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |5 15 conduct inspections concerning the Property, including without limitation, the structural condition of improvements, hazardous materials, pest infestation, soils conditions, sensitive areas, wetlands, or other matters affecting the feasibility of the Property for Buyer’s intended use. Buyer shall schedule any entry onto the Property with Seller in advance and shall comply with Seller's reasonable requirements including those relating to security, confidentiality, and disruption of Seller's tenants. Prior to entering the Property and while conducting any inspections, Buyer shall, at no cost or expense to Seller: (a) procure and maintain commercial general liability (occurrence) insurance in an amount no less than $2,000,000 on commercially reasonable terms adequate to insure against all liability arising out of any entry onto or inspections of the Property that lists Seller and Tenant as additional insureds; and (b) deliver to Seller prior to entry upon the Property certificates of insurance for Buyer and any applicable agents or representatives evidencing such required insurance. Buyer shall not perform any invasive testing including environmental inspections beyond a phase I assessment or contact the tenants or property management personnel without obtaining Seller's prior written consent, which shall not be unreasonably withheld, conditioned or delayed. Buyer shall restore the Property and all improvements to substantially the same condition they were in prior to inspection. Buyer shall be solely responsible for all costs of its inspections and feasibility analysis and has no authority to bind the Property for purposes of statutory liens. Buyer agrees to indemnify and defend Seller from all liens, costs, claims, and expenses, including attorneys' and experts' fees, arising from or relating to entry onto or inspection of the Property by Buyer and its agents, which obligation shall survive closing. Buyer may continue to enter the Property in accordance with the foregoing terms and conditions after removal or satisfaction of the Feasibility Contingency only for the purpose of leasing or to satisfy conditions of financing. c. Buyer waives, to the fullest extent permissible by law, the right to receive a seller disclosure statement (e.g. “Form 17”) if required by RCW 64.06 and its right to rescind this Agreement pursuant thereto. However, if Seller would otherwise be required to provide Buyer with a Form 17, and if the answer to any of the questions in the section of the Form 17 entitled “Environmental” would be “yes,” then Buyer does not waive the receipt of the “Environmental” section of the Form 17 which shall be provided by Seller. 25. Conveyance. Title shall be conveyed subject only to the Permitted Exceptions. If this Agreement is for conveyance of Seller’s vendee’s interest in a Real Estate Contract, the deed shall include a contract vendee’s assignment sufficient to convey after-acquired title. At Closing, Seller and Buyer shall execute and deliver to Closing Agent CBA Form PS-AS Assignment and Assumption Agreement transferring all leases and Vendor Contracts assumed by Buyer pursuant to Section 25(b) and all intangible property transferred pursuant to Section 25(b). 26. Personal Property. a. If this sale includes the personal property located on and used in connection with the Property, Seller will itemize such personal property in an Exhibit to be attached to this Agreement within ten (10) days of Mutual Acceptance. The value assigned to any personal property shall be $ (if not completed, the County-assessed value if available, and if not available, the fair market value determined by an appraiser selected by the Listing Broker and Selling Broker). Seller warrants title to, but not the condition of, the personal property and shall convey it by bill of sale. b. In addition to the leases and Vendor Contracts assumed by Buyer pursuant to Section 24 above, this sale includes all right, title and interest of Seller to the following intangible property now or hereafter existing with respect to the Property including without limitation: all rights-of-way, rights of ingress or egress or other interests in, on, or to, any land, highway, street, road, or avenue, open or proposed, in, on, or across, in front of, abutting or adjoining the Property; all rights to utilities serving the Property; all drawings, plans, specifications and Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 137 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |6 15 other architectural or engineering work product; all governmental permits, certificates, licenses, authorizations and approvals; all rights, claims, causes of action, and warranties under contracts with contractors, engineers, architects, consultants or other parties associated with the Property; all utility, security and other deposits and reserve accounts made as security for the fulfillment of any of Seller's obligations; any name of or telephone numbers for the Property and related trademarks, service marks or trade dress; and guaranties, warranties or other assurances of performance received. 27. Seller’s Underlying Financing. Unless Buyer is assuming Seller’s underlying financing, Seller shall be responsible for confirming the existing underlying financing is not subject to any "lock out" or similar covenant which would prevent the lender's lien from being released at closing. In addition, Seller shall provide Buyer notice prior to the Feasibility Contingency Date if Seller is required to substitute securities for the Property as collateral for the underlying financing (known as “defeasance”). If Seller provides this notice of defeasance to Buyer, then the parties shall close the transaction in accordance with the process described in CBA Form PS_D or any different process identified in Seller’s defeasance notice to Buyer. 28. Closing of Sale. Buyer and Seller shall deposit with Closing Agent by 12:00 p.m. on the scheduled Closing Date all instruments and monies required to complete the purchase in accordance with this Agreement. Upon receipt of such instruments and monies, Closing Agent shall cause the deed to be recorded and shall pay to Seller, in immediately available funds, the Purchase Price less any costs or other amounts to be paid by Seller at Closing. “Closing” shall be deemed to have occurred when the deed is recorded and the sale proceeds are available to Seller. Time is of the essence in the performance of this Agreement. Sale proceeds shall be considered available to Seller, even if they cannot be disbursed to Seller until the next business day after Closing. Notwithstanding the foregoing, if Seller informed Buyer before the Feasibility Contingency Date that Seller’s underlying financing requires that it be defeased and may not be paid off, then Closing shall be conducted in accordance with the three(3)-day closing process described in CBA Form PS_D. This Agreement is intended to constitute escrow instructions to Closing Agent. Buyer and Seller will provide any supplemental instructions requested by Closing Agent provided the same are consistent with this Agreement. 29. Closing Costs and Prorations. Seller shall deliver an updated rent roll to Closing Agent not later than two (2) days before the scheduled Closing Date in the form required by Section 23(a) and any other information reasonably requested by Closing Agent to allow Closing Agent to prepare a settlement statement for Closing. Seller certifies that the information contained in the rent roll is correct as of the date submitted. Seller shall pay the premium for the owner's standard coverage title policy. Buyer shall pay the excess premium attributable to any extended coverage or endorsements requested by Buyer, and the cost of any survey required in connection with the same. Seller and Buyer shall each pay one-half of the escrow fees. Any real estate excise taxes shall be paid by the party who bears primary responsibility for payment under the applicable statute or code. Real and personal property taxes and assessments payable in the year of closing; collected rents on any existing tenancies; expenses already incurred by Seller that relate to services to be provided to the Property after the Closing Date; interest; utilities; and other operating expenses shall be pro- rated as of Closing. Seller will be charged and credited for the amounts of all of the pro-rated items relating to the period up to and including 11:59 pm Pacific Time on the day preceding the Closing Date, and Buyer will be charged and credited for all of the pro-rated items relating to the period on and after the Closing Date. If tenants pay any of the foregoing expenses directly, then Closing Agent shall only pro rate those expenses paid by Seller. Buyer shall pay to Seller at Closing an additional sum equal to any utility deposits or mortgage reserves for assumed financing for which Buyer receives the benefit after Closing. Buyer shall pay all costs of financing including the premium for the lender's title policy. If the Property was taxed under a deferred classification prior to Closing, then Seller shall pay all taxes, interest, penalties, Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 138 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |7 15 deferred taxes or similar items which result from removal of the Property from the deferred classification. At Closing, all refundable deposits on tenancies shall be credited to Buyer or delivered to Buyer for deposit in a trust account if required by state or local law. Buyer shall pay any sales or use tax applicable to the transfer of personal property included in the sale. 30. Post-Closing Adjustments, Collections, and Payments. After Closing, Buyer and Seller shall reconcile the actual amount of revenues or liabilities upon receipt or payment thereof to the extent those items were prorated or credited at Closing based upon estimates. Any bills or invoices received by Buyer after Closing which relate to services rendered or goods delivered to the Seller or the Property prior to Closing shall be paid by Seller upon presentation of such bill or invoice. At Buyer's option, Buyer may pay such bill or invoice and be reimbursed the amount paid plus interest at the rate of 12% per annum beginning fifteen (15) days from the date of Buyer's written demand to Seller for reimbursement until such reimbursement is made. Notwithstanding the foregoing, if tenants pay certain expenses based on estimates subject to a post-closing reconciliation to the actual amount of those expenses, then Buyer shall be entitled to any surplus and shall be liable for any credit resulting from the reconciliation. Rents collected from each tenant after Closing shall be applied first to rentals due most recently from such tenant for the period after closing, and the balance shall be applied for the benefit of Seller for delinquent rentals owed for a period prior to closing. The amounts applied for the benefit of Seller shall be turned over by Buyer to Seller promptly after receipt. Seller shall be entitled to pursue any lawful methods of collection of delinquent rents but shall have no right to evict tenants after Closing. Any adjustment shall be made, if any, within 180 days of the Closing Date, and if a party fails to request an adjustment by notice delivered to the other party within the applicable period set forth above (such notice to specify in reasonable detail the items within the Closing Statement that such party desires to adjust and the reasons for such adjustment), then the allocations and prorations at Closing shall be binding and conclusive against such party. 31. Operations Prior to Closing. Prior to Closing, Seller shall continue to operate the Property in the ordinary course of its business and maintain the Property in the same or better condition than as existing on the date of Mutual Acceptance but shall not be required to repair material damage from casualty except as otherwise provided in this Agreement. After the Feasibility Contingency Date, Seller shall not enter into or modify existing rental agreements or leases (except that Seller may enter into, modify, extend, renew or terminate residential rental agreements or residential leases for periods of 12 months or less in the ordinary course of its business), service contracts, or other agreements affecting the Property which have terms extending beyond Closing without obtaining Buyer's consent, which shall not be withheld unreasonably. 32. Possession. Buyer shall accept possession subject to all tenancies disclosed to Buyer before the Feasibility Contingency Date. 33. Seller’s Representations. Except as disclosed to or known by Buyer prior to the satisfaction or waiver of the Feasibility Contingency, including in the books, records and documents made available to Buyer, or in the title report or any supplemental report or documents referenced therein, Seller represents to Buyer that, to the best of Seller's actual knowledge, each of the following is true as of the date hereof: (a) Seller is authorized to enter into the Agreement, to sell the Property, and to perform its obligations under the Agreement, and no further consent, waiver, approval or authorization is required from any person or entity to execute and perform under this Agreement, except as stated in Exhibit B; (b) The books, records, leases, agreements and other items delivered to Buyer pursuant to this Agreement comprise all material documents in Seller's possession or control regarding the operation and condition of the Property, are true, accurate and complete to the best of Seller’s knowledge, and no other contracts or agreements exist that will be binding on Buyer after Closing; (c) Seller has not Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 139 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |8 15 received any written notices that the Property or any business conducted thereon violate any applicable laws, regulations, codes and ordinances; (d) Seller has all certificates of occupancy, permits, and other governmental consents necessary to own and operate the Property for its current use; (e) There is no pending or threatened litigation which would adversely affect the Property or Buyer's ownership thereof after Closing; (f) There is no pending or threatened condemnation or similar proceedings affecting the Property, and the Property is not within the boundaries of any planned or authorized local improvement district; (g) Seller has paid (except to the extent prorated at Closing) all local, state and federal taxes (other than real and personal property taxes and assessments described in Section 28 above) attributable to the period prior to closing which, if not paid, could constitute a lien on Property (including any personal property), or for which Buyer may be held liable after Closing; (h) Seller is not aware of any concealed material defects in the Property except as disclosed to Buyer before the Feasibility Contingency Date; (i) There are no Hazardous Substances (as defined below) currently located in, on, or under the Property in a manner or quantity that presently violates any Environmental Law (as defined below); there are no underground storage tanks located on the Property; and there is no pending or threatened investigation or remedial action by any governmental agency regarding the release of Hazardous Substances or the violation of Environmental Law at the Property; (j) Seller has not granted any options nor obligated itself in any matter whatsoever to sell the Property or any portion thereof to any party other than Buyer; and (k) Neither Seller nor any of its respective partners, members, shareholders or other equity owners, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute or executive order; and (l) the individual signing this Agreement on behalf of Seller represents and warrants to Buyer that he or she has the authority to act on behalf of and bind Seller, except as stated in Exhibit B. As used herein, the term "Hazardous Substances" shall mean any substance or material now or hereafter defined or regulated as a hazardous substance, hazardous waste, toxic substance, pollutant, or contaminant under any federal, state, or local law, regulation, or ordinance governing any substance that could cause actual or suspected harm to human health or the environment ("Environmental Law"). The term "Hazardous Substances" specifically includes, but is not limited to, petroleum, petroleum by-products, and asbestos. If prior to Closing Seller or Buyer discovers any information which would cause any of the representations above to be false if the representations were deemed made as of the date of such discovery, then the party discovering the information shall promptly notify the other party in writing and Buyer, as its sole remedy, may elect to terminate this Agreement by giving Seller notice of such termination within five (5) days after Buyer first received actual notice (with the Closing Date extended to accommodate such five (5) day period), and in such event, the Earnest Money Deposit shall be returned to Buyer. Buyer shall give notice of termination within five (5) days of discovering or receiving written notice of the new information. Nothing in this paragraph shall prevent Buyer from pursuing its remedies against Seller if Seller had actual knowledge of the newly discovered information such that a representation provided for above was false. 34. As-Is. Except for the express representations and warranties in this Agreement, (a) Seller makes no representations or warranties regarding the Property; (b) Seller hereby disclaims, and Buyer hereby waives, any and all representations or warranties of any kind, express or implied, concerning the Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous material on site, suitability for Buyer’s intended use, occupancy rate or any other matter of similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose, tenantability, habitability and use; (c) Buyer takes the Property “AS IS” and with all faults; and (d) Buyer represents and warrants to Seller that Buyer has sufficient experience Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 140 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |9 15 and expertise such that it is reasonable for Buyer to rely on its own pre-closing inspections and investigations. 35. Buyer’s Representations. Buyer represents that Buyer is authorized to enter into the Agreement; to buy the Property; to perform its obligations under the Agreement; and that neither the execution and delivery of this Agreement nor the consummation of the transaction contemplated hereby will: (a) conflict with or result in a breach of any law, regulation, writ, injunction or decree of any court or governmental instrumentality applicable to Buyer; or (b) constitute a breach of any agreement to which Buyer is a party or by which Buyer is bound. The individual signing this Agreement on behalf of Buyer represents that he or she has the authority to act on behalf of and bind Buyer. 36. Claims. Any claim or cause of action with respect to a breach of the representations and warranties set forth herein shall survive for a period of nine (9) months from the Closing Date, at which time such representations and warranties (and any cause of action resulting from a breach thereof not then in litigation, including indemnification claims) shall terminate. Notwithstanding anything to the contrary in this Agreement: (a) Buyer shall not make a claim against Seller for damages for breach or default of any representation or warranty, unless the amount of such claim is reasonably anticipated to exceed $25,000; and (b) under no circumstances shall Seller be liable to Buyer on account of any breach of any representation or warranty in the aggregate in excess of the amount equal to $250,000, except in the event of Seller’s fraud or intentional misrepresentation with respect to any representation or warranty regarding the environmental condition of the Property, in which case Buyer’s damages shall be unlimited. 37. Condemnation and Casualty. Seller bears all risk of loss until Closing, and thereafter Buyer bears all risk of loss. Buyer may terminate this Agreement and obtain a refund of the earnest money if improvements on the Property are materially damaged or if condemnation proceedings are commenced against all or a portion of the Property before Closing, to be exercised by notice to Seller within ten (10) days after Seller’s notice to Buyer of the occurrence of the damage or condemnation proceedings. Damage will be considered material if the cost of repair exceeds the lesser of $100,000 or five percent (5%) of the Purchase Price. Alternatively, Buyer may elect to proceed with closing, in which case, at Closing, Seller shall not be obligated to repair any damage, and shall assign to Buyer all claims and right to proceeds under any property insurance policy and shall credit to Buyer at Closing the amount of any deductible provided for in the policy. 38. FIRPTA Tax Withholding at Closing. Closing Agent is instructed to prepare a certification (CBA or NWMLS Form 22E, or equivalent) that Seller is not a “foreign person” within the meaning of the Foreign Investment in Real Property Tax Act, and Seller shall sign it on or before Closing. If Seller is a foreign person, and this transaction is not otherwise exempt from FIRPTA, Closing Agent is instructed to withhold and pay the required amount to the Internal Revenue Service. 39. Notices. Unless otherwise specified, any notice required or permitted in, or related to, this Agreement (including revocations of offers and counteroffers) must be in writing. Notices to Seller must be signed by at least one Buyer and must be delivered to Seller and Listing Broker with a courtesy copy to any other party identified as a recipient of notices in Section 18. A notice to Seller shall be deemed delivered only when received by Seller and Listing Broker, or the licensed office of Listing Broker. Notices to Buyer must be signed by at least one Seller and must be delivered to Buyer, with a copy to Selling Broker and with a courtesy copy to any other party identified as a recipient of notices in Section 18. A notice to Buyer shall be deemed delivered only when received by Buyer and Selling Broker, or the licensed office of Selling Broker. Selling Broker and Listing Broker otherwise have no responsibility to advise parties of receipt of a notice beyond either phoning the represented party or causing a copy of the notice Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 141 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |10 15 to be delivered to the party's address provided in this Agreement. Buyer and Seller shall keep Selling Broker and Listing Broker advised of their whereabouts in order to receive prompt notification of receipt of a notice. If any party is not represented by a licensee, then notices must be delivered to and shall be effective when received by that party at the address, fax number, or email indicated in Section 18. Facsimile transmission of any notice or document shall constitute delivery. E-mail transmission of any notice or document (or a direct link to such notice or document) shall constitute delivery when: (i) the e-mail is sent to both Selling Broker and Selling Firm or both Listing Broker and Listing Firm at the e-mail addresses specified on page two of this Agreement; or (ii) Selling Broker or Listing Broker provide written acknowledgment of receipt of the e-mail (an automatic e-mail reply does not constitute written acknowledgment). At the request of either party, or the Closing Agent, the parties will confirm facsimile or e-mail transmitted signatures by signing an original document. 40. Computation of Time. Unless otherwise specified in this Agreement, any period of time in this Agreement shall mean Pacific Time and shall begin the day after the event starting the period and shall expire at 5:00 p.m. of the last calendar day of the specified period of time, unless the last day is a Saturday, Sunday or legal holiday as defined in RCW 1.16.050, in which case the specified period of time shall expire on the next day that is not a Saturday, Sunday or legal holiday. Any specified period of five (5) days or less shall not include Saturdays, Sundays or legal holidays. Notwithstanding the foregoing, references to specific dates or times or number of hours shall mean those dates, times or number of hours; provided, however, that if the Closing Date falls on a Saturday, Sunday, or legal holiday as defined in RCW 1.16.050, or a date when the county recording office is closed, then the Closing Date shall be the next regular business day. If the parties agree upon and attach a legal description after this Agreement is signed by the offeree and delivered to the offeror, then for the purposes of computing time, mutual acceptance shall be deemed to be on the date of delivery of an accepted offer or counteroffer to the offeror, rather than on the date the legal description is attached. 41. Assignment. Buyer’s rights and obligations under this Agreement are not assignable without the prior written consent of Seller, which shall not be withheld unreasonably; provided, however, Buyer may assign this Agreement without the consent of Seller, but with notice to Seller, to any entity under common control and ownership of Buyer, provided no such assignment shall relieve Buyer of its obligations hereunder. If the words "and/or assigns" or similar words are used to identify Buyer in Section 2, then this Agreement may be assigned with notice to Seller but without need for Seller's consent. The party identified as the initial Buyer shall remain responsible for those obligations of Buyer stated in this Agreement notwithstanding any assignment and, if this Agreement provides for Seller to finance a portion of the purchase price, then the party identified as the initial Buyer shall guarantee payment of Seller financing. 42. Default and Attorneys’ Fees. a. Buyer's default. In the event Buyer fails, without legal excuse, to complete the purchase of the Property, then the applicable provision as identified in Section 13 shall apply: i. Forfeiture of Earnest Money. Seller may terminate this Agreement and keep that portion of the earnest money that does not exceed five percent (5%) of the Purchase Price as liquidated damages as the sole and exclusive remedy available to Seller for such failure. ii. Seller’s Election of Remedies. Seller may, at its option, (a) terminate this Agreement and keep that portion of the earnest money that does not exceed five percent (5%) of the Purchase Price as liquidated damages as the sole and exclusive remedy available to Seller for such failure, (b) bring suit against Buyer for Seller's actual damages, (c) bring suit to specifically enforce this Agreement and recover any incidental damages, or (d) pursue any other rights or remedies available at law or equity. Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 142 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |11 15 b. Seller's default. In the event Seller fails, without legal excuse, to complete the sale of the Property, then the applicable provision as identified in Section 14 shall apply: i. Recover Earnest Money or Specific Enforcement. As Buyer’s sole remedy, Buyer may either (a) terminate this Agreement and recover all earnest money or fees paid by Buyer whether or not the same are identified as refundable or applicable to the purchase price; or (b) bring suit to specifically enforce this Agreement and recover incidental damages, provided, however, Buyer must file suit within sixty (60) days from the Closing Date or from the date Seller has provided notice to Buyer that Seller will not proceed with closing, whichever is earlier. ii. Buyer’s Election of Remedies. Buyer may, at its option, (a) bring suit against Seller for Buyer's actual damages, (b) bring suit to specifically enforce this Agreement and recover any incidental damages, or (c) pursue any other rights or remedies available at law or equity. c. Neither Buyer nor Seller may recover consequential damages such as lost profits. If Buyer or Seller institutes suit against the other concerning this Agreement, the prevailing party is entitled to reasonable attorneys' fees and costs. In the event of trial, the amount of the attorneys’ fees shall be fixed by the court. The venue of any suit shall be the county in which the Property is located, and this Agreement shall be governed by the laws of the State of Washington without regard to its principles of conflicts of laws. 43. MiscellaneousProvisions. a. Complete Agreement. This Agreement and any addenda and exhibits thereto state the entire understanding of Buyer and Seller regarding the sale of the Property. There are no verbal or other written agreements which modify or affect the Agreement, and no modification of this Agreement shall be effective unless agreed in writing and signed by the parties. b. Counterpart Signatures. This Agreement may be signed in counterpart, each signed counterpart shall be deemed an original, and all counterparts together shall constitute one and the same agreement. c. Electronic Delivery and Signatures. Electronic delivery of documents (e.g., transmission by facsimile or email) including signed offers or counteroffers and notices shall be legally sufficient to bind the party the same as delivery of an original. At the request of either party, or the Closing Agent, the parties will replace electronically delivered offers or counteroffers with original documents. The parties acknowledge that a signature in electronic form has the same legal effect as a handwritten signature. d. Section 1031 Like-Kind Exchange. If either Buyer or Seller intends for this transaction to be a part of a Section 1031 like-kind exchange, then the other party agrees to cooperate in the completion of the like- kind exchange so long as the cooperating party incurs no additional liability in doing so, and so long as any expenses (including attorneys’ fees and costs) incurred by the cooperating party that are related only to the exchange are paid or reimbursed to the cooperating party at or prior to Closing. Notwithstanding this provision, no party shall be obligated to extend closing as part of its agreement to facilitate completion of a like-kind exchanged. In addition, notwithstanding Section 40 above, any party completing a Section 1031 like-kind exchange may assign this Agreement to its qualified intermediary or any entity set up for the purposes of completing a reverse exchange. 44. Information Transfer. In the event this Agreement is terminated, Buyer agrees to deliver to Seller within ten (10) days of Seller's written request copies of all materials received from Seller and any non-privileged plans, studies, reports, inspections, appraisals, surveys, drawings, Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 143 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |12 15 permits, applications or other development work product relating to the Property in Buyer's possession or control as of the date this Agreement is terminated. 45. Confidentiality. Until and unless closing has been consummated, Buyer and Seller shall follow reasonable measures to prevent unnecessary disclosure of information obtained in connection with the negotiation and performance of this Agreement. Neither party shall use or knowingly permit the use of any such information in any manner detrimental to the other party. 46. Agency Disclosure. Buyer Brokerage Firm, Buyer Brokerage Firm’s Designated Broker, Buyer Brokerage Firm’s Branch Manager (if any) and any of Buyer Brokerage’s Firm’s Managing Brokers who supervise Buyer Broker represent the same party that Buyer Broker represents. Listing Firm, Listing Firm’s Designated Broker, Listing Broker’s Branch Manager (if any), and any of Listing Firm’s Managing Brokers who supervise Listing Broker represent the same party that the Listing Broker represents. All parties acknowledge receipt of the pamphlet entitled “Real Estate Brokerage in Washington.” 47. Buyer Broker’s Compensation Disclosure. a.Compensation from Seller. The compensation offered to Buyer Brokerage Firm by Seller for providing buyer brokerage services to Buyer related to the Property is: % of the purchase price S $ 3,000 other: . b.Compensation from Listing Firm. The compensation offered to Buyer Brokerage Firm by the Listing Firm for providing buyer brokerage services to Buyer related to the Property is: % of the purchase price $ other: . 48. Seller’s Acceptance and Brokerage Agreement. Seller agrees to sell the Property on the terms and conditions herein. The Listing Firm’s compensation shall be paid as specified in the listing or commission agreement. If there is no written listing or commission agreement, Seller agrees to pay to Listing Firm compensation of 0 % of the sales price or $ . The compensation to Buyer Brokerage Firm shall be paid as set forth in this Agreement. Seller and Buyer consent to Listing Firm and Buyer Brokerage Firm receiving compensation from more than one party and to the sharing of compensation between firms. In any action by Listing Firm or Buyer Brokerage Firm to enforce this Section, the prevailing party is entitled to reasonable attorneys' fees and expenses. The Property described in attached Exhibit A is commercial real estate. Notwithstanding Section 45 above, the pages containing this Section, the parties' signatures and an attachment describing the Property may be recorded. 49.Listing Broker and Selling Broker Disclosure. EXCEPT AS OTHERWISE DISCLOSED IN WRITING TO BUYER OR SELLER, THE SELLING BROKER, LISTING BROKER, AND FIRMS HAVE NOT MADE ANY REPRESENTATIONS OR WARRANTIES OR CONDUCTED ANY INDEPENDENT INVESTIGATION CONCERNING THE LEGAL EFFECT OF THIS AGREEMENT, BUYER'S OR SELLER'S FINANCIAL STRENGTH, BOOKS, RECORDS, REPORTS, STUDIES, OR OPERATING STATEMENTS; THE CONDITION OF THE PROPERTY OR ITS IMPROVEMENTS; THE FITNESS OF THE PROPERTY FOR BUYER’S INTENDED USE; OR OTHER MATTERS RELATING TO THE PROPERTY, INCLUDING WITHOUT LIMITATION, THE PROPERTY'S ZONING, BOUNDARIES, AREA, COMPLIANCE WITH APPLICABLE LAWS (INCLUDING LAWS REGARDING ACCESSIBILITY FOR DISABLED PERSONS), OR HAZARDOUS OR TOXIC MATERIALS INCLUDING MOLD OR OTHER ALLERGENS. SELLER AND BUYER ARE EACH ADVISED TO ENGAGE QUALIFIED EXPERTS TO ASSIST WITH THESE DUE DILIGENCE AND FEASIBILITY MATTERS, AND ARE FURTHER ADVISED TO SEEK INDEPENDENT LEGAL AND TAX ADVICE RELATED TO THIS AGREEMENT. Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 144 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |13 15 IN WITNESS WHEREOF, the parties have signed this Agreement intending to be bound. Buyer City of Pasco Seller West Pasco LLC Printed Name and Type of Entity Printed Name and Type of Entity Buyer Seller Signature and Title Signature and Title Date Date Buyer Seller Printed Name and Type of Entity Printed Name and Type of Entity Buyer Seller Signature and Title Signature and Title Date Date Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 1/10/2025 Page 145 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |14 15 EXHIBIT A * [Legal Description] N.P. PLAT LOT 11 BLK 23 *To ensure accuracy in the legal description, consider substituting the legal description contained in the preliminary commitment for title insurance or a copy of the Property’s last vesting deed for this page. Do not neglect to label the substitution “Exhibit A.” You should avoid transcribing the legal description because any error in transcription may render the legal description inaccurate and this Agreement unenforceable. Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 146 of 150 Commercial & Investment Real Estate Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PS-1A | Purchase & Sale Agreement Rev. 7/2020 Page |15 15 EXHIBIT B [Additional Terms] 1.Offer acceptance is subject to final approval of all terms by Pasco City Council. Buyer Date Buyer Date Seller Date Seller Date Docusign Envelope ID: 351E469E-1472-4E38-AFC2-0014D4849446 1/8/2025 Docusign Envelope ID: 9FBD98B5-96C1-4B02-AFB8-597EC202E9DF 1/10/2025 Page 147 of 150 AGENDA REPORT FOR: City Council January 31, 2025 TO: Richa Sigdel, Deputy City Manager City Council Regular Meeting: 2/3/25 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Cancellation of the February 10, 2025, Council Workshop (1 minute) I. ATTACHMENT(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve the cancellation of the regularly scheduled Council Workshop set for February 10, 2025. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Per the Pasco Municipal Code (PMC) Section 2.05.010, the City Council may cancel regular business meetings or workshops, by motion, at their discretion. V. DISCUSSION: Several Councilmembers will be traveling on February 10th in order to meet with the Washington State Legislators located in Capital, Olympia, Washington on February 11th. . As a result of the Councilmembers' absences, there may not be a quorum of City Council to participate in the February 10th Workshop. It is staff's recommendation that this Workshop be cancelled. Page 148 of 150 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 149 of 150 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 150 of 150