HomeMy WebLinkAbout2025.09.08 Council Workshop Packet
AGENDA
City Council Workshop Meeting
7:20 PM - Monday, September 8, 2025
Pasco City Hall, Council Chambers & Microsoft Teams Webinar
Page
1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would
like to provide public comment remotely, may continue to do so by filling out
the online form via the City’s website (www.pasco-wa.gov/publiccomment)
to obtain access information to comment. Requests to comment in meetings
must be received by 4:00 p.m. on the day of this workshop.
The Pasco City Council Workshops are broadcast live on PSC-TV Channel
191 on Charter/Spectrum Cable in Pasco and Richland and streamed at
www.pasco-wa.gov/psctvlive and on the City’s Facebook page at
www.facebook.com/cityofPasco.
To listen to the meeting via phone, call 1-332-249-0718 and use access
code 283 283 749#.
Audio equipment available for the hearing impaired; contact the Clerk for
assistance.
Servicio de intéprete puede estar disponible con aviso. Por favor avisa la
Secretaria Municipal dos dias antes para garantizar la disponiblidad.
(Spanish language interpreter service may be provided upon request.
Please provide two business day's notice to the City Clerk to ensure
availability.)
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
4. VERBAL REPORTS FROM COUNCILMEMBERS
5. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC
COMMENT – the public may comment on each topic scheduled for
discussion, up to 2 minutes per person with a total of 8 minutes per item. If
Page 1 of 82
opposing sides wish to speak, then both sides receive an equal amount of
time to speak or up to 4 minutes each side.
3 - 28 (a) Community & Economic Development Department Work Plan (15
minute staff presentation)
29 - 36 (b) Adjustment of Utility Tax Rate For City Owned Utilities (15
minute staff presentation)
37 - 49 (c) General Fund Monthly Report - July 2025 (2 minute staff
presentation)
50 - 63 (d) Resolution - Change Order No. 4 for Wastewater Treatment Plant
Phase 2A Construction Contract with Apollo (5 minute staff
presentation)
64 - 80 (e) Resolution - Professional Services Agreement Amendment No. 2
with RH2 Engineering, Inc. for Design Services for the Process
Water Reuse Facility Irrigation System Farm Upgrades Project (5
minute staff presentation)
6. MISCELLANEOUS COUNCIL DISCUSSION
7. EXECUTIVE SESSION
8. ADJOURNMENT
9. ADDITIONAL NOTES
81 - 82 (a) Adopted Council Goals (Reference Only)
Page 2 of 82
AGENDA REPORT
FOR: City Council September 2, 2025
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 9/8/25
FROM: Haylie Matson, Director
Community & Economic Development
SUBJECT: Community & Economic Development Department Work Plan (15
minute staff presentation)
I. ATTACHMENT(S):
CED Work Plan
CED Work Plan Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion and feedback are requested.
III. FISCAL IMPACT:
The CED Work Plan outlines a strategy to invest in short-term costs for
technology upgrades, consultant studies, and staff training. These initial
expenses, which are budgeted in current biennial budget, are designed to be
offset over time by implementing new fee structures, increasing process
efficiencies, and generating new development revenue. This approach aims to
reduce the city's reliance on its General Fund and decrease long-term
dependence on consultants, aligning with a model where growth is self-funded,
thus ensuring economic sustainability.
IV. HISTORY AND FACTS BRIEF:
The Community & Economic Development Department's (CED) multi-year
work plan will guide departmental priorities to align with City Council goals, and
ensure compliance with state mandates. The current work plan covers projects
and initiatives through 2026, including the state-required 2044 Comprehensive
Plan update, code and policy revisions, and operational improvements to
permitting and customer service. Many of these efforts are driven by recent
legislative changes at the state level (e.g., housing, zoning, and permitting
reform) as well as community needs for streamlined processes, clear
regulations, and improved development services. The work plan is intended as
a live document that is updated annually to track progress and reflect the City's
Page 3 of 82
direction.
V. DISCUSSION:
The CED is responsible for supporting Pasco’s growth through planning,
permitting, housing, property maintenance, and building strong community
partnerships. Our mission is to provide efficient, transparent, and customer-
focused services that encourage business growth, support innovation, and help
create a resilient and sustainable community. By 2026, the goals are to reduce
permit processing times by 20% and to achieve over 90% customer service
satisfaction, with the larger vision of making Pasco the most efficient, trusted,
and business-friendly city in the region.
Key focus areas for the department include:
Staying aligned with new state legislation on housing, zoning, permitting,
and environmental regulations.
Completing the 2044 Comprehensive Plan update, addressing zoning
conflicts, updating critical areas, and modernizing transportation and
climate strategies.
Updating codes and policies to streamline permit processes, expand
SEPA exemptions, improve commercial and industrial design standards,
and adjust regulations for special events and other land use matters as
necessary.
Revisiting code enforcement priorities to match staffing levels and
Council expectations.
impact areas critical other and Steppe Shrub Explore Landscape
mitigation options that balance development needs with community
impacts.
Operational improvements are centered on:
Modernizing permitting by moving the Trakit software into a cloud
platform, opening a full online permit portal, and implementing permit
turnaround tracking.
Enhancing customer service with a Developer Forum, online payment
options, a public development map, and a customer service survey.
Increasing efficiency by centralizing file systems, conducting fee studies,
standardizing and licensing inspection workflows, and auditing
processes.
Supporting staff through training programs and rebranding the One-Stop
Permit Center to improve consistency and visibility.
Recent accomplishments within the work plan show steady progress and are
updated CED's reflect these Together, efforts track to routinely results.
service commitment to combining long-range planning with immediate
improvements, keeping Pasco’s growth efficient and community focused.
This is a live document that will be revised continuously and updated each year
Page 4 of 82
to reflect progress and new priorities.
CED welcomes Council feedback on this work plan (attached) prior to sharing it
in the upcoming Developer Forum.
Page 5 of 82
1
COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT
WORK PLAN
________________________________________________________________________________________________________________________________
The Community and Economic Development (CED) Department promotes and oversees development in the community through land use planning, increase in and improvement of housing, regular property
maintenance, enforcement of construction regulations, and improved design aesthetics throughout the city.
Short-term goals:
- Reduce permit processing time collectively by 20% by end of 2026
- Receive 90% or higher customer service satisfaction ratings by end of 2026 (measured via online/email survey)
Vision: Our vision is to make Pasco the most efficient, trusted, and business -friendly city in the region, while building a thriving, resilient, sustainable, community through strong partnerships that ensure growth and opportunity
for all.
Mission: The Community & Economic Development Department’s mission is to deliver efficient, transparent, and customer -focused permitting and development services. We achieve this by supporting business growth,
fostering innovation, ensuring regulatory compliance, strengthening community partnerships, enhancing quality of life for residents, and creating a prosperous, sustainable, resilient Pasco.
________________________________________________________________________________________________________________________________
PART ONE
POLICY/LEGISLATIVE WORK PLAN
Category Council Goal Project Name Requested by Priority Status
Administrative - Quality of Life
- Financial
sustainability
- Community
transportation
network
- Community safety
- Economic viability
- City identity
-
CED work plan.
CED is preparing a two-year work plan (this document) to outline key initiatives and priorities. This plan
will inform staff, the City Manager’s Office, City Council, and the public about upcoming projects, goals,
and strategies that support Pasco’s growth and community development
City Q3 2025 In progress.
Policy - TBD Legislative changes from 2023-2025.
Identify state-level changes affecting planning, zoning, permitting, and building/fire codes. Analyze
impacts on PMC, policies, and standards. Develop a tracked action list with owners, deadlines, and
approvals aligned to the Comprehensive Plan. The list below is from prior years and 2025. State will
review the lists below and update codes as needed based on State law.
Changes (if not already addressed in previous years) may include but are not limited to:
Prior to 2025
1. SHB 1326 (2023) Waives municipal utility connection charges for certain properties.
CED Q4 2025 to review
initiatives and set
specific priority
dates through end
of 2026.
In progress.
Pa
g
e
6
o
f
8
2
2
2. EHB 1337 (2023) Allows two ADUs per lot in all urban growth areas, with exceptions. S
3. HB 1377 (2019) Provides bonus density for affordable housing development on property owned
by a religious organization.
4. HB 1695 (2023) Defines affordable housing for purposes of using surplus public property for
public benefit.
5. E2SHB 1923 (2019) Adds definitions related to housing under GMA. Sets parking limits for
certain types of developments and reduces the opportunity for appeals under SEPA for actions
that increased housing supply. Requires cities to allow permanent supportive housing in areas
where multi-family housing is allowed.
6. ESHB 1998 (2024) Relates to legalizing inexpensive housing options through co-living housing.
7. SHB 2001 (2022) Expands the ability to build tiny houses. ESHB 2321 (2024) Modifies Middle
Housing requirements, trailer bill to HB 1110.
8. SB 5042 (2022) Provides an effective date of action that expand an urban growth area, establish
a community or resort, or change land designation. E2SSB 5258 (2023) Requires local
governments to publish a schedule of impact fees which reflects the proportionate impact of
new housing units.
9. 2ESSB 5275 (2022) Enhances opportunity in limited areas of more intense rural development
(LAMIRD), providing that any development or redevelopment of building size, scale, use or
intensity may be permitted within a LAMIRD, with exceptions.
10. 2SSB 5290 (2023) Makes changes to local government procedures for new housing permit
processing, clarifying timelines around complete permit applications.
11. 2E2ESSB 5536 (2023) Recognizes opioid treatment programs, recovery residences, and harm
reduction programs as essential public facilities for the purpose of local land use regulations.
12. ESSB 5593 (2022) Requires that counties consider patterns of development when reviewing
urban growth areas under the GMA, in addition to other criteria.
13. SSB 5818 (2022) Requires the Washington State Department of Ecology to update SEPA rules
relating to categorical exemptions for residential development, and limits appeals under the
state Environmental Policy Act and GMA.
14. SSB 5834 (2024) Concerns urban growth area swaps.
15. SSB 6015 (2024) Concerns parking configurations in residential areas. SSB 6140 (2024) Concerns
more intensive rural development in limited areas.
16. ESSB 6617 (2020) Adds new requirements related to accessory dwelling units (ADU) parking.
2025
1. Tourism Promotion Assessment: Senate Bill 5492, establishes an advisory group to evaluate the
feasibility of an industry-funded self supported assessment for statewide tourism promotion.
2. Clean Buildings Compliance: House Bill 1543, expands compliance options for building owners
under Washington’s clean buildings performance standards.
3. Cap-and-Trade Adjustments: House Bill 1975, amends Washington’s Climate Commitment Act
to refine auction price containment mechanisms, ceiling prices, and the Department of
Ecology’s authority to amend rules for linkage with other jurisdictions.
4. Wildfire Mitigation Standards: House Bill 1539, establishes a work group to study and
recommend wildfire mitigation and resiliency standards.
Pa
g
e
7
o
f
8
2
3
5. Homeless Housing Funding: House Bill 1260, modifies the distribution of document recording
surcharge funds to ensure cities operating their own homeless housing programs receive
proportional shares without county administrative deductions .
6. Residential Driveway Parking: House Bill 1061, allows residential property owners to park
vehicles across their driveways if permitted by local ordinances or resolutions.
7. Lot Splitting: House Bill 1096, facilitates administrative lot splitting to expand middle housing
and affordable ownership opportunities in cities under the Growth Management Act.
8. Growth Management Compliance: House Bill 1135, strengthens requirements for jurisdictions
to amend noncompliant plans under the Growth Management Act before achieving compliance .
9. Retrofit Housing: House Bill 1183, facilitates affordable and sustainable housing development
by reforming building codes and development regulations.
10. Boundary Review Process: House Bill 1304, modifies the filing and review process for notices of
intention submitted to boundary review boards.
11. Accessory Dwelling Unit Self-Certification: House Bill 1353, establishes a framework for cities to
create self-certification programs for accessory dwelling unit (ADU) permit applications.
12. Disabled Veteran Parking: House Bill 1371, expands parking privileges for persons with
disabilities to include veterans with a 70% or higher disability rating who use service animals.
13. Transit-Oriented Development: House Bill 1491, promotes transit-oriented development and
affordable housing by requiring cities to allow multifamily housing in station areas near major
transit stops and adopt minimum floor area ratios (FAR) for residential and mixed-use
development.
14. Multifamily Tax Exemptions: House Bill 1494, amends property tax exemption laws for new and
rehabilitated multiple-unit dwellings in urban centers.
15. Diaper Changing Stations in Public Restrooms: House Bill 1562, requires the installation of baby
diaper changing stations in public restrooms under specific conditions .
16. Historic Landmark Designations: House Bill 1576, prohibits designating properties as historic
landmarks without the written consent of the property owner if the designation would restrict
the use, alteration, or demolition of the property.
17. Electric Security Alarms: House Bill 1688, establishes statewide standards for the installation
and operation of electric security alarm systems in jurisdictions without existing regulations.
18. Conversion of Existing Buildings: House Bill 1757, facilitates the addition of housing units within
existing buildings in commercial, mixed-use, or residential zones by limiting local government
restrictions.
19. Building Permit Exclusion: House Bill 1935, excludes building permits from the definition and
procedural requirements of “project permits.”
20. Housing Accountability Act: Senate Bill 5148, introduces a state-level review process for housing
elements and related development regulations adopted by counties and cities under the
Growth Management Act.
21. Preemption on Parking Requirements: Senate Bill 5184, establishes statewide limitations on
minimum parking requirements for residential and commercial developments.
22. Energy Facility Appeals: Senate Bill 5317, exempts certain local government actions related to
Energy Facility Site Evaluation Council (EFSEC)-certified energy facilities from appeals under
state siting laws.
Pa
g
e
8
o
f
8
2
4
23. Middle Housing Expansion: Senate Bill 5471, authorizes counties to permit middle housing, such
as duplexes and triplexes, in urban growth areas (UGAs) and Limited Areas of More Intensive
Rural Development (LAMIRDs) under certain GTH-GOV 20 conditions.
24. Child Care Zoning: Senate Bill 5509, mandates that cities, towns, and code cities allow child care
centers as a permitted use in all non-industrial zones, with reasonable restrictions such as
requirements for pickup and drop-off areas.
25. Comprehensive Plan Deadline Extension: adjusts Growth Management Act compliance
timelines for comprehensive plan updates, design review processes, and housing density
regulations. The deadline for Benton, Chelan, Cowlitz, Douglas, Franklin, Kittitas, Skama nia,
Spokane, Walla Walla, and Yakima counties to update their plans is extended to December 31,
2026, with subsequent updates due every 10 years.
26. Unit Lot Subdivisions: Senate Bill 5559 streamlines the subdivision process for residential
developments within urban growth areas by establishing procedures for “unit lot subdivisions.”
27. Cladding Material Regulation: Senate Bill 5571, prohibits cities, code cities, and counties from
mandating or excluding specific exterior cladding materials that comply with the state building
code, with certain exceptions. Exceptions include historic dist ricts, wildfire safety areas, and
jurisdictions with unique architectural themes, such as Bavarian-style requirements.
28. Shared Streets Framework: Senate Bill 5595, establishes a framework for “shared streets”
where pedestrians, bicyclists, and vehicles share roadway space under modified traffic rules.
29. Permitting: Senate Bill 5611, streamlines local land use permitting processes and expands the
use of binding site plans to include commercially zoned property allowing multifamily
residential uses.
30. Child Care Facilities: Senate Bill 5655, standardizes occupancy load calculations for child care
centers in multi-use buildings, such as churches, to encourage repurposing existing spaces.
Policy - Quality of Life
- Financial
sustainability
- Community
transportation
network
- Community safety
Transportation Impact Analysis (TIA) Scoping Procedures.
Outline the process for TIAs for staff and applicants to utilize. Share with the council and post online.
City Q3 2025 Drafted. Richa
emailed Harold on
8/18/25 about this
and shared with the
council.
Code change - Quality of Life
Title 4 edits. Title 4, Permit Process was last updated in 1996. Updated code to outline more clearly the
permit process and address SB 5290 requirements.
City Q4 2025 Nearly complete.
Haylie has on hold
to review once new
CED process analyst
can review and
weigh in.
Code change - Quality of Life
SEPA categorical exemptions changes (primarily for residential projects).
The city seeks to reduce the amount of SEPAs required for smaller development projects.
Council &
applicants
Q4 2025 Notice out by
9/5/25.
Comprehensive
Plan
- Financial
sustainability
Comprehensive Plan Amendment, School Impact Fees. School impact fees are charged on new
residential development to help fund the school facilities needed for student growth. Under RCW
City/school Q4 2025 Not started.
Pa
g
e
9
o
f
8
2
5
82.02.050–82.02.090, fees must be based on each district’s Capital Facilities Plan (CFP), incorporated
into the jurisdiction’s Capital Improvement Plan (CIP). The CFP projects enrollment identifies facility
capacity, and outlines costs for new schools or expansions, forming the basis for collecting impact fees.
Comprehensive
Plan
- Quality of Life
- City identity
Comprehensive Plan Amendment, R-S-20 zone.
The City of Pasco faces a conflict in the R-S-20 zone between the gross density requirements in PMC
25.215.015 (3–6 units per acre) and the 20,000-square-foot minimum lot size, which only allows about
two units per acre. This inconsistency, created by Ordinance No. 4663, has effectively halted small-lot
development in the zone. The recommended solution is to process an emergency comprehensive plan
amendment and code revision to restore the density range to 2 –5 units per acre, allowing
development to proceed while meeting Growth Management Act requirements. This process will
require City Council action, SEPA review, Planning Commission hearings, and public involvement.
City Q4 2025 Not started.
Comprehensive
Plan
- Quality of Life
- Financial
sustainability
- Community
transportation
network
- Community safety
- Economic viability
- City identity
Comprehensive Plan 2044 Update.
The City of Pasco is launching a periodic update to its Comprehensive Plan, which will shape how the
community grows and develops over the next 20 years to a population of nearly 122,000. This state
mandated effort must be completed by December 31, 2026, and will extend the planning horizon to
2044. The update will address housing, transportation, land use, economic development, and public
facilities, ensuring Pasco’s policies and growth strategy reflect community priorities, state mandates,
and regional coordination.
- Housing
- Climate change
- UGA areas
- County collaboration
- Land Use & Zoning map review
- Economic Development Plan & Element
- Police Plan
- Fire District Plan
- Parks plan
Etc.
State Q4 2026 In progress.
Comprehensive
Plan & Code
change
- Quality of Life
Critical Areas Ordinance Update.
Pasco is required to update its critical areas ordinance (Title 28).
State Q4 2026 Not started.
Code change - Quality of Life
- Financial
sustainability
SB 5290.
Initiative streamlines local permitting by requiring jurisdictions to issue completeness determinations
within 28 days and to make permit decisions within set “shot-clock” timelines starting January 1,
2025—65 days for permits without notice, 100 days with notice, and 170 days with notice and a
hearing. Cities and counties that miss these deadlines must refund up to 20% of fees unless they adopt
at least three optional streamlining measures. The bill also requires annual performance reporting for
larger jurisdictions and provides state grants to support digital permitting and process improvements.
State Q3 2025 Title 4 got this
started. Need to
review/finalize.
Code change - Quality of Life
- City identity
HB 1337 Accessory Dwelling Units. State Q4 2026 Not started.
Pa
g
e
1
0
o
f
8
2
6
Requires GMA cities and counties to allow up to two ADUs per lot (min. 1,000 sq ft), with no stricter
standards than primary dwellings. Caps impact fees at 50%, allows independent ADU sales, and
mandates adoption within six months of periodic plan updates.
Code change - Community
transportation
network.
SB 5184 Parking Reform and Modernization Act.
The Parking Reform and Modernization Act, caps how much parking cities can require for new
development—generally 0.5 spaces per multifamily unit and 1 space per single-family home, with some
uses like small homes, affordable housing, and childcare exempt. It takes effect July 27, 2025, with
phased implementation, aiming to lower costs, support housing affordability, and give developers
more flexibility.
State Q4 2026 Not started.
Comprehensive
Plan
- Quality of life
- Community
transportation
network.
Transportation System Master Plan (TSMP).
The City is undertaking an update to its TSMP, the city’s functional plan that supports and
operationalizes the transportation policies in the Comprehensive Plan. The original TSMP, adopted in
August 2022, established a clear multimodal vision, one that equitably serves pedestrians, bicyclists,
transit users, freight, and drivers—and laid out performance-based strategies to guide Pasco toward a
safe, connected, and sustainable future.
State Q4 2026 In progress.
Code change - Quality of life
- City identity
Commercial and Industrial design standards. The city is updating its design standards for industrial,
commercial, and manufacturing areas to improve building design, site layout, landscaping, and lighting.
The update will apply citywide, complementing existing code provisions, and aims to create a
consistent, functional, and visually appealing framework that supports Pasco’s growing employment
and business centers. After this change, the city will look to exempt larger commercial projects from
SEPA review.
Council Q4 2025 Not started.
Code change - Quality of life
Noise Regulations. Review noise ordinance with the city council.
Council Q4 2025 Not started.
Policy - Quality of life
Code enforcement program priorities.
The City proposes reviewing the current code enforcement caseload with the City Council in relation to
available staffing to identify priorities and establish key areas of focus.
City Q4 2025 Not started.
Code change - Community safety
- Quality of life
Basin Disposal, Inc. To ensure consistency, functionality, and compliance with City requirements, the
City of Pasco will adopt standardized trash enclosure design and construction standards. These
standards will provide applicants with clear guidance on the location, size, ma terials, finishes, drainage,
and access requirements for trash and recycling facilities.
BDI Q4 2025 Not started.
Comprehensive
Plan
- TBD Regional Climate Change Plan. To meet the state-mandated requirements for climate planning, the
Benton-Franklin Council of Governments (BFCOG), Benton County, and the cities of Kennewick, Pasco,
Richland, and West Richland are collaborating to address natural hazards intensified by cli mate change,
including wildfire smoke, drought, and extreme heat. Together, these jurisdictions are developing
strategies to guide future land use, growth, and development decisions.
State Q4 2025 Not started.
Policy - Financial
sustainability
Shrub Step Mitigation. Shrub-steppe mitigation options for applicants in Pasco should be explored by
the city to expand the range of options available for developers to offset shrub -steppe impacts
associated with new development.
City Q1 2026 Not started.
Pa
g
e
1
1
o
f
8
2
7
Policy - Community
Transportation
Network
Right of Way Width Discussions. Review right of way width requirements for Pasco as compared to
Kennewick and Richland. Hold workshop with Council on findings. Invite applicants to attend and
comment.
Council &
Applicants
Q4 2025 Not started.
Code change - City identity Permitted Uses/Unclassified Uses in PMC. Update permitted uses in each zone. Reduce special use
permits and/or make special use permits administrative as needed (similar to Kennewick process),
remove unclassified uses and give the director discretion to allow uses similar in nature to permitted
uses.
City Q4 2026 Not started.
Code change - Financial
sustainability
PMC Chapter 12.36 concurrency updates.
Update the City’s concurrency chapter to align more seamlessly with the Traffic Impact Fee program
and Transportation Impact Analysis study requirements.
City Q4 2025 Not started.
Code change - Quality of life
- City identity
Special Events permits.
Streamline the intake and review process for special events permits to align with proposed policy
changes from the City Manager’s Office regarding special events and exemptions from permit
requirements.
City Q4 2025 In progress.
Code change - Quality of life
- City identity
Yard Sale Permits.
Reduce or remove permitting requirements for yard sales.
City Q4 2025 May be addressed
with special event
permits or
separately. TBD.
Policy - Quality of life
Pre Application and General Meeting instructions. Provide instructions to staff and applicants related
to meeting types, meeting materials requirements and lead times needed to schedule with applicants.
Staff are working to provide potential requirements for applicants earlier in the process at the pre
application stage.
CED Q3 2025 Not started.
Policy - Quality of life
- Financial
sustainability
Park Impact Fee.
Update Park impact fees and program as needed.
TBD TBD Not started.
Policy - Quality of life
- City identity
Downtown Pasco Master Plan – Implementation (ongoing).
Review DT Master plan and hold routine meetings with Framework to keep momentum going on plan.
City ongoing Ongoing
Code change Frontage improvement requirements in R-S-20 & R-S-12. Applicant requested action, asking the City
consider reinstating a former provision (PMC 12.04.080) which allowed developers in R -S-20 and R-S-12
zoning districts to optionally install sidewalks, curbs, gutters, and streetlights instead of requiring them.
He notes that this optional standard was removed around 2020 without explanation and argues that
the mandatory installation significantly increases lot and home prices, impacting housing affordability.
Applicant indicated that a $10,000 increase in lot cost could result in a $15,000 –$20,000 increase in
home prices. He is willing to organize support from local builders, developers, property owners, and
the Home Builders Association to advocate for this change.
Applicant TBD Hold
Code change Broadmoor driveway code change TBD TBD Hold
Pa
g
e
1
2
o
f
8
2
8
Code change SEPA threshold changes – commercial project and cultural resources review TBD TBD Hold
Policy Neighborhood congregation TBD TBD Hold
Policy Economic Development Plan TBD TBD Hold
Policy Shoreline master plan TBD TBD Hold
Administration Latecomer Fee. City TBD Hold
Policy Bike and Pedestrian Standards TBD TBD Hold
PART TWO
OPERATIONS/PROCESS IMPROVEMENTS WORK PLAN
Category Council goal Project Name Requested
by
Timeline Status
Customer
service
- Quality of Life
- Financial
sustainability
- Community
transportation
network
- Community
safety
- Economic
viability
- City identity
Developer Forum.
The City of Pasco is hosting a Developer Forum to engage with the development community and gather
feedback on city processes, customer service, and opportunities for improvement. The forum will also
include an overview of current work plans and initiatives. This collaborative discussion is intended to
strengthen partnerships, identify ways to better serve our customers, and support efficient, transparent
development in Pasco.
Council October
2025
Determine date.
Customer
service
- Quality of Life
- Financial
sustainability
Online payments/credit card payments.
Customers currently can pay for permits via a check (in person or mail) or debit card (in person). Step 1:
Establish interim online payment option. Step 2: utilize integrated payment method in Trakit when CED
moves to Trakit cloud software.
Council 09/30/25 In progress.
Customer
service
- Quality of Life
- Economic
viability
- City identity
Current Development Update Map online and updated monthly.
Phase 1: Develop an online, interactive map showcasing current development projects, including those under
review, under construction, and recently completed.
Phase 2: Integrate the map with the project file system, allowing both the public and staff to access full
project details directly through the map.
CED Phase 1:
October
2025
Phase 2: Q2
2026
In progress.
Customer
service
- Quality of Life
- Economic
viability
- City identity
Customer service survey to Director.
CED will implement a customer service survey to be linked to the website that will go the Director. All staff
will be requested to add a link to the survey on their email signature lines. The intent of this is to measure
customer service ratings and maintain high ratings or if ratings are lower, improve ratings over time with
process efficiency changes (online payments, automatic status updates to applicants, clear procedures, etc).
CED Q4 2025 Not started. Haylie will work
with communications on this.
Admin. - Quality of Life
- Economic
viability
- City identity
CED fee study/simplification of fees
CED proposes to initiate a comprehensive fee study to evaluate the adequacy of current permit and service
fees. At present, fee revenues are extremely low and do not cover the cost of staff time and resources
CED Q2 2026 Not started.
Pa
g
e
1
3
o
f
8
2
9
required to process permits, conduct inspections, and provide related services. This structural imbalance
results in a subsidy from the City’s general fund, placing additional strain on limited municipal resources.
Customer
service
- Quality of Life
- Economic
viability
- City identity
Process sheets for all steps in the permit process.
The permit process should be reviewed by mapping the current workflow, identifying bottlenecks, gathering
staff feedback, and collecting key metrics. From this, clear process sheets should be created for each permit
type, outlining step-by-step instructions, required documents and fees, system entry requirements, approval
steps, and customer communication templates to ensure consistency and training support. Processes should
then be updated to reduce redundancies, clarify staff responsibilities, and improve customer-facing
interactions, such as adding online forms and automated renewal reminders.
CED Q2 2026 In progress.
Customer
service
- Quality of Life
- Economic
viability
- City identity
Trakit (permit software) fixes and cloud implementation.
The existing Trakit platform (.net) is no longer updated by the company (Central Square). The system is old
and has many issues to be fixed to be used more efficiently. Move Trakit into the cloud platform and update
all “glitches.”
CED Q1 2026 Kickoff to project begins August
2025.
Customer
service
- Quality of Life
- Economic
viability
- City identity
Trakit portal open for all applications online.
Currently, applicants cannot pay for permits or submit or receive permits online. In person or email
submittals and resubmittals are provided to staff. CED will open the permit portal online to create a one stop
shop for applicants to submit permits, submit revisions, pay and receive permits from the system. This will
include automatic status updates.
CED Q1 2026 To begin fall of 2025.
Admin. - Quality of Life
- Economic
viability
- City identity
File system update.
CED files should be centralized in one location with a clear file system and consistent naming convention to
improve organization and retrieval. Files should be linked to the permit system for easy reference, with
shortcuts created to related documents to reduce duplication and streamline workflows. A shared platform
should be used that allows multiple staff to access, edit, and collaborate on documents in real time,
eliminating the need to send files back and forth through email. This approach will ensure consistency,
improve efficiency, and support better coordination across staff and departments.
CED Q1 2026 TBD
Customer
service
- Quality of Life
- Economic
viability
- City identity
Permit turnaround information.
Establish target and actual permit review times for each division and permit type, and make this information
publicly available online, modeled after Marysville’s Permit Turnaround approach & website. The
Community and Economic Development Director will review target timelines quarterly with management to
monitor progress and identify areas for improvement. The overall goal is to reduce permit review times by
20% by the end of 2026, increasing efficiency, transparency, and customer satisfaction.
CED Q2 2026 TBD
Customer
service
- Quality of Life
- Economic
viability
- City identity
Permit turnaround report – staff review times.
Create and run report (monthly) showing staff review times on each permit. This information will be used to
determine if target timelines need to shift or if staff (who may be running behind) need extra support or help
to finish reviews on time based on targets.
CED Q2 2026 TBD
Customer
service
- Quality of Life
Temporary Occupancy & Final Occupancy Procedure.
Identify any needed changes for the temporary occupancy and final occupancy process. Outline what
applicants need to provide and when for temporary occupancy.
CED Q2 2026 Not started.
Pa
g
e
1
4
o
f
8
2
10
Customer
service
- Quality of Life
- Economic
viability
- City identity
Website.
Update CED website to become more user friendly. Update old references, add major development maps,
permit targets and other useful information for applicants.
CED/Com
munication
s
Q4 2026 ongoing
Admin. - Quality of Life
Training Program.
Identify training needs for all CED staff based on positions and areas of growth.
CED Ongoing ongoing
Admin. - Quality of Life
-
Bluebeam civil plan reviews.
Investigate live studio reviews
CED TBD TBD
Admin. - Quality of Life Routing Northwest code council process. Review procedure for third party plan review. Recommend
improvements as needed.
CED TBD TBD
Customer
service
- Quality of Life
- Economic
viability
Business license process overhaul.
Review business license processes, create process sheets for all business license procedures. Changing
process is needed to facilitate a smoother process. Determine whether Trakit is the best place for business
licenses or if there is another method that can help process these better.
CED Q4 2026 In progress.
Admin. - Quality of Life
-
Inspector process audit.
Meet with inspectors to determine inspection process (for inspection requests, notes in field and occupancy
process). Determine if improvements are needed.
CED TBD TBD
Customer
service
- Quality of Life
- City identity
One stop permits center signage. Rebrand website and signage for one stop permit center, removing
references to building, development services, planning, etc.
CED Q4 2025 TBD
Customer
service
- Quality of Life Solar UV inspections.
The applicant requested change to modify the UV inspection process to mirror what Richland does.
Applicant
requested
TBD TBD
Pa
g
e
1
5
o
f
8
2
11
COMPLETE ITEMS AND ACCOMPLISHMENTS
Project Name Date complete Outcome
Exempting small projects from permits 2025 Pasco has revised its permit requirements to match national standards under the International Building and Residential Codes. Permits are no
longer required for sheds, fences, patios, and re-roofing.
In 2024, the city processed 881 such permits; 334 have been submitted so far in 2025. The change saves applicants at least fo ur hours per project
and reduces third-party preparation costs. Staff time savings are estimated at up to 15 hours per week.
Fence education is needed as some fences going up are blocking meters, etc.
Traffic impact fees update 2025 New transportation impact fees are implemented to reduce burden of proportionate share process.
TIF website and TIF calculator 2025 Transportation impact fee information and calculator is online here.
One stop permit center
2025 CED staff relocated to a shared area in one location for customers.
Fee sheet for permit technicians 2025 A new procedure/handout has been created for planning division to fill out (in coordination with development services) for th e permit technicians
to utilize when assigning fees for each project on the building permits. The fees can be complex and vary for projects based on location or other
factors. Having this in place will streamline our process and reduce errors when charging fees.
Development services fees 2025 Established an hourly rate for Development Services staff. With this change, the city is requiring a deposit up front and the remaining fees will be
owed prior to issuance. CED previously provided invoices to applicants once a month. Time savings is estimated to be 20 hours per month between
finance and CED.
Pa
g
e
1
6
o
f
8
2
Pasco City Council
September 8, 2025
Workshop
Pa
g
e
1
7
o
f
8
2
Community and
Economic
Development (CED)
Work Plan
September 8, 2025
Pasco City Council
Pa
g
e
1
8
o
f
8
2
CED Work Plan Overview
1. Goals
2. Policy/Legislative
3. Operations
4. Conclusion & Questions
Pa
g
e
1
9
o
f
8
2
CED Overview
The Community and Economic Development (CED) Department
promotes and oversees development in the community through land
use planning, increase in and improvement of housing, regular
property maintenance, construction regulations, and improved
design aesthetics throughout the city.
Pa
g
e
2
0
o
f
8
2
CED Work Plan Overview
Vision:
Our vision is to make Pasco the most efficient, trusted, and business-friendly
city in the region, while building a thriving, resilient, sustainable, community
through strong partnerships that ensure growth and opportunity for all.Pa
g
e
2
1
o
f
8
2
CED Work Plan Overview
Mission:
The Community & Economic Development Department’s mission is to deliver
efficient, transparent, and customer-focused permitting and development
services. Pa
g
e
2
2
o
f
8
2
Goals
• Reduce permit processing times by 20% by 2026
• Achieve 90%+ customer service satisfaction rating by 2026
• Support sustainable, resilient growth through partnerships and innovation
Pa
g
e
2
3
o
f
8
2
Policy Improvements
•2046 Comprehensive Plan update
•Legislative alignment with new state laws
•Code and policy updates to streamline permitting and improve design
standardsPa
g
e
2
4
o
f
8
2
Operational Improvements
• Modernize permitting: Trakit cloud upgrade & online portal.
• Customer Service: Developer Forum, Online payments, development
map, customer survey.
Pa
g
e
2
5
o
f
8
2
Operational Improvements
• Increase efficiency: centralized file systems, fee studies, workflows,
inspection audits.
• Training & branding: staff training programs, One-Stop Permit Center
rebranding.
Pa
g
e
2
6
o
f
8
2
Next Steps
• Council discussion
• Work plan is a live document, revised continuously and updated annually
• Tracks progress and adapts to new prioritiesPa
g
e
2
7
o
f
8
2
Questions?Pa
g
e
2
8
o
f
8
2
AGENDA REPORT
FOR: City Council September 3, 2025
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 9/8/25
FROM: Richa Sigdel, Deputy City Manager
City Manager
SUBJECT: Adjustment of Utility Tax Rate For City Owned Utilities (15 minute staff
presentation)
I. ATTACHMENT(S):
Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
A 1% increase in the utility taxes on city-provided services is projected to
generate approximately $600,000 in additional annual revenue for the general
fund. The General Fund received $3.5 million in 2024 in utility tax fees. It is
important to note that any increase would be passed on to the ratepayers of
the utilities. A recommended 1.5% increase in utility tax rate results in
approximately 0.25% increase in Water and Sewer rates.
IV. HISTORY AND FACTS BRIEF:
Utility taxes are a flexible local revenue source under Washington state law. Any
city may impose a tax on the income of utility companies.
Revenues are unrestricted and may be used for any lawful governmental
purpose.
Maximum tax rate may not exceed 6% for electric, gas, steam, and
telephone services unless approved by voters.
No limitation on the tax rate for water, sewer, solid waste, or storm water
utilities.
Internet and satellite TV may not be taxed; cable TV has special
provisions.
Pasco's current utility tax rate is 8.5%. The City has a franchise agreement to
provide solid waste services to residents; any increases to utility tax rate should
Page 29 of 82
be worked via the agreement. Unlike some other utility types, there is no state
limitation on the tax rate for these services.
Below are some comparisons that show the significant variety in application of
utility taxes rates across the State of Washington.
Service Electric Water/
Irrigation Refuse Gas Sewer Stormwater Cable/TV Telephone
Pasco 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5%
Kennewick 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5%
Richland 8.5% 12.3% 10.5% 8.5% 10.5% 8.5% 7.5% 8.5%
West
Richland 6.0% 13.5% 8.5% 6.0% 13.5% 6.0% 6.0% 6.0%
Vancouver 6.0% 20.0% 20.0% 6.0% 20.0% 20.0% 5.0% 6.0%
V. DISCUSSION:
Utility Tax Rate Increase
Service 1.0% 1.5% 3.0%
Water $ 172,895 $ 259,342 $ 518,684
Irrigation $ 27,374 $ 41,060 $ 82,121
Sewer $ 136,821 $ 205,232 $ 410,464
PWRF $ 240,000 $ 360,000 $ 720,000
Storm $ 24,899 $ 37,348 $ 74,697
Total $ 601,988 $ 902,983 $ 1,805,965
IMPACT: Additional utility tax revenue to General Fund allows for the City to
reduce reliance on reserves to maintain its current level of City services.
RECOMMENDATION: Staff recommends that the City Council discuss options
pertaining to a potential increase in utility taxes on city-provided utilities. Staff's
recommendation is to adopt 1.5% increase that brings in nearly $1 million in
General Fund revenue to support essential City services but also to not
overburden utility rate payers. Any increase approved by the Council could be
adjusted in the future as the City's financial situation improves.
ALTERNATIVES:
1. Council could choose to select any percentage increase in utility tax
rates, each 1% results in approximately $600,000 in revenue to the
General Fund annually.
2. Council could choose not to increase the utility tax rate and direct staff
to find other revenue sources or reduce expenses to reduce the current
General Fund deficit.
Page 30 of 82
September 8, 2025
Pasco City Council
Council Workshop
MeetingPa
g
e
3
1
o
f
8
2
BACKGROUND
2
•Any city may impose a tax on the income of utility
companies.
•Maximum tax rate may not exceed 6% for electric, gas,
steam, and telephone services unless approved by voters.
•Residents voted in additional 2.5% in utility taxes.
•Council can increase on the tax rate on City owned utilities.
Other utilities like solid waste would need to additional lead
time.
•Satellite TV may not be taxed; cable TV has special
provisions.
•Council voted increase can be reduced at any point by
Council action.
Pa
g
e
3
2
o
f
8
2
BACKGROUND
3
•Current Rate – 8.5%
•Additional 1.5% on City owned Utility brings:
•Water - $260K/Year
•Sewer - $205K/Year
•Irrigation - $41K/Year
•Stormwater - $37K/Year
•PWRF - $360K/Year
Total - $0.9M/Year
Pa
g
e
3
3
o
f
8
2
UTILITY TAX
4
Utility Tax Increase
1.0%1.5%3.0%
Water $ 172,895 $ 259,342 $ 518,684
Irrigation $ 27,374 $ 41,060 $ 82,121
Sewer $ 136,821 $ 205,232 $ 410,464
PWRF $ 240,000 $ 360,000 $ 720,000
Storm
Water $ 24,899 $ 37,348 $ 74,697
Total $ 601,988 $ 902,983 $ 1,805,965
Pa
g
e
3
4
o
f
8
2
BENCHMARKS
5
Service Electric Water/Irrigation Refuse Gas Sewer Stormwater Cable
Television Telephone
Pasco 8.5%8.5%8.5%8.5%8.5%8.5%8.5%8.5%
Kennewick 8.5%8.5%8.5%8.5%8.5%8.5%8.5%8.5%
Richland 8.5%12.3%10.5%8.5%10.5%8.5%7.5%8.5%
West Richland 6.0%13.5%8.5%6.0%13.5%6.0%6.0%6.0%
Vancouver 6.0%20.0%20.0%6.0%20.0%20.0%5.0%6.0%
Pa
g
e
3
5
o
f
8
2
QuestionsPa
g
e
3
6
o
f
8
2
AGENDA REPORT
FOR: City Council September 2, 2025
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 9/8/25
FROM: Griselda Garcia, Interim Director
Finance
SUBJECT: General Fund Monthly Report - July 2025 (2 minute staff presentation)
I. ATTACHMENT(S):
July General Fund Summary and Detailed Report
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Presentation
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
Attached is the monthly General Fund financial update through July 2025, the
City's major governmental fund. Due to the reporting and receipt of revenues
such as sales taxes, where the State distributes in this case the local share of
January 2025 tax receipts in March, and the City's own accounting of
expenditures during the latter part of the reporting period, the General Fund
report reflects information as much as couple of months behind actuals. July
tax sales tax receipts are for May 2025 consumer activity. Nonetheless, taken
over time the monthly report provides the reader a reasonably solid view of City
finances and the ability to identify trends. The quarterly report provides a higher
level actuals with respect to actuals, and the Annual Report exact numbers
with respect to revenues and expenditures.
V. DISCUSSION:
As of the end of July, elapsed time for budget is 29%. This is a linear metric
that does not always align with City's non-labor costs and revenue. For
example, on the revenue side property taxes are distributed to the City in April
Page 37 of 82
and October, on the expenditure side, the City's liability insurance premium is
paid in one installment in January, supplies and services are charged as they
are received. Overall, revenues typically follow cyclical patterns, while many
expenditures—such as salaries—remain consistent throughout the year. This
report presents financial data as of a specific point in time and should not be
interpreted as final year-end results.
The adopted budget anticipated the use of approximately $5.05M in reserves in
2025 for operations and approximately $2.7M of usage of capital bond
proceeds received in prior years. Current projections indicate that the General
Fund may require closer to $6.5M in reserves for operations, reflecting the
combined effect of revenue shortfalls and expenditure pressures. The primary
reason for the potential need to use additional reserves is that revenue is
coming in lower than projected. While expenditures are being monitored and
managed, the shortfall on the revenue side reduces the available resources to
cover operating costs, resulting in greater reliance on reserves to balance the
budget. Historically, revenue collections tend to increase significantly in the
fourth quarter; however, we need to be cautious not to rely too heavily on this
trend when evaluating our year-end position.
Staff will continue to monitor General Fund projections closely and implement
corrective measures as needed to maintain a stable financial position.
A list of contracts over $100,000 and under $300,000 executed administratively
in the month of July, as well as donations made to the City during the same
period are included in the report.
Page 38 of 82
Monthly General Fund Report
July 2025
Financial Highlights
The intent of this report is to provide an overview of activity in the City's
General Fund through July 31, 2025. This is a snapshot in time, projections
and analysis for decision making will prove valuable further in the year as
data is collected.
The table below presents a comparison of budget to actual results by
department within the General Fund. The “Non -Departmental” category
represents citywide revenue sources, including property taxes, sales tax, and
certain licenses. Revenues in the Engineering Department primarily reflect
charges for services related to capital improvement projects and are typically
recognized about two months after the services are provided. Community and
Economic Development (CED) revenues are generated from permitting an d
development services, which are currently about 4% below target due to a
decline in permitting activity. Overall, revenue performance across
departments reflects both the timing of recognition and current economic
activity trends.
Department
2025-2026
Budget
YTD 2025
Actuals
% of
Budget
Parks & Rec 1,363,100 491,482 36%
CED 8,432,719 2,073,147 25%
City Mgr 276,550 47,344 17%
Court 438,300 172,557 39%
Engineer 7,258,169 1,138,253 16%
Finance 1,990,460 1,502,847 76%
Fire 3,509,276 1,171,867 33%
Information Technology 85,000 9,523 11%
NonDept 131,381,123 32,741,851 25%
Police 5,380,652 1,990,701 37%
Page 39 of 82
Where it came from:
Where it went:
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Transportation Interest on long
term debt
Natural &
Economic
Transfers Cultural &
Community
Activities
General
Government
Public Safety
Expenses by Function as of end of July
Page 40 of 82
Budget to Actuals (Elapsed Time: 29%)
Operational
Category
2025-2026
Budget 2025 Actuals
2025
Encumbrance
%
Actuals
to
Budget
Expense 169,636,410 44,282,768 5,543,275 26%
Operational Capital 682,512 499,201 69,400 73%
Debt Interest 6,973,863 2,196,088 - 31%
Debt Principal 4,005,508 - - 0%
Personnel Benefits 23,514,530 6,298,084 - 27%
Salaries and Wages 67,851,635 17,383,671 - 26%
Overtime 3,407,711 959,974 - 28%
Services 50,100,511 14,731,261 5,305,822 29%
Supplies 7,325,140 783,593 168,052 11%
Transfers Out-Subsidy 2,875,000 549,909 - 19%
Transfers Out-UT Taxes to Streets 2,900,000 880,986 - 30%
Revenue 159,491,011 40,442,031 - 25%
Charges for Goods and Services 21,194,237 5,531,289 - 26%
Fine and Penalties 2,440,300 869,633 - 36%
Intergovernmental 7,519,082 2,829,724 - 38%
Licenses & Permits 6,584,940 1,659,295 - 25%
Miscellaneous 5,312,149 860,746 - 16%
Investment Income 1,128,804 714,488 63%
Taxes 114,384,039 27,662,746 - 24%
Transfer In - Subsidy 295,000 138,117 47%
Transfer In-Grants 632,460 175,994 28%
Net Impact
(10,145,399)
(3,840,737)
Capital / Non-Operational
Category
2025-2026
Budget
2025 Actuals 2025
Encumbrance
%
Actuals to
Budget
Expense 2,662,000 2,424,372 - 91%
Transfer Out - CIP 2,662,000 2,424,372 - 91%
Revenue - 760,722 - 0%
Insurance recovery 138,321
Sale of assets - 760,722 - 0%
Net Impact (2,662,000) (1,663,650)
Overall impact to fund balance, both operationally and capital, is
a decrease of $5,504,387. This represents usage of General Fund
reserves.
Page 41 of 82
Revenues
End of July represents approximately 29% of elapsed time in the biennium.
Overall, revenues are at 29% of budget which is reasonable given that
revenues are cyclical and don’t align with expenses. During the reporting
period, operating revenues exceeded operating expenditures, resulting in a
net loss of $3,840,737. Several key revenue sources—including gambling
taxes and admission taxes—are received on a quarterly basis which can
temporarily impact the General Fund's cash flow. Further, property taxes are
received twice a year with payments in April and October.
Proactive steps have been taken in response to the current economic
environment, particularly the challenges posed by inflation which has
impacted increases in service contracts. Through strategic timing of
investments and a focus on liquidity management, the department has been
able to generate increased interest income. During the reporting period, the
General Fund earned $714,488 in investment interest income which
represents 63% of budgeted revenue for the biennium for this revenue
category.
Tax Type 2025 YTD (July) 2024 YTD (July)
Sales Tax 11,144,051 11,371,373
Property Tax 8,141,931 7,527,963
Utility Tax 8,290,350 6,896,142
Gambling, Admission, Leasehold 86,413 354,440
Total Taxes 27,662,746 26,149,918
The table above reflects tax revenue received thru end of July for 2025 and
2024 for comparison purposes.
During the first quarter, taxes made up 68% of total operating revenue
received and is at 24% of budgeted revenue. This is slightly below target
percentage of 29% based on elapsed time in the biennial budget. Further, a s
seen in the table, sales tax makes up the majority of that revenue. Overall, tax
revenue in the current year is about $1.5M or 6% more than last year for the
same timeframe. This is driven by continued growth in the local commercial
base and increased online retail activity under the Destin ation Sales Tax rule.
The sales tax rate is 8.9%. The City receives a share of regular sales tax,
criminal justice and public safety which are distributed by the State and
Page 42 of 82
Franklin County. Further, factors such as a mild winter impact revenues such
as Utility Taxes.
The bulk of revenues from property tax are received in two installments as the
deadlines for timely payment are April 30th and October 31st of each year.
The first installment of property taxes is reflected in the table above.
Permits
Permit Type
YTD
2025
Count
YTD 2025
Value
YTD
2024
Count
YTD 2024
Value
Commercial 228 86,038,309 353 131,796,746
Industrial 33 23,134,039 37 97,212,556
Residential (Incl. mobile
homes) 987 88,383,686 1287 85,856,088
Total
1,248 197,556,035
1,677 314,865,390
A variety of economic factors influence the overall health of the community
and, by extension, the vitality of the General Fund. One key indicator is
permitting activity, which reflects both the growth and desirability of the
community, as well as contributes to building-related sales tax revenue.
Permitting activity has remained at a slower pace than expected, which may
be attributed to broader external influences, including the current political
and economic climate. The City has historically benefited from at least one
large-scale construction project, such as a school or major industrial or
commercial development; however, that has not been the case this year.
Additionally, seasonal factors such as weather conditions can also affect the
timing and volume of permit issuance.
As previously noted, CED revenue is about 4% or $372K below target for this
point in the biennium. If this pace continues, revenues are projected to be
approximately $1M under budget for 2025. Staff will continue to monitor
permitting trends closely and provide updates as conditions evolve to ensure
timely awareness of potential impacts on revenue forecasts. At the same time,
departments will be expected to exercise caution in managing expenditur es,
limiting spending where possible to mitigate the impact of revenue shortfalls
on available funding for expenses.
Page 43 of 82
Donations
The recreation department actively pursues donations or sponsorships for
community events. Within the month of July, the department was successful
in receiving $3,753 in donations, totaling $83,493 of donations received thus
far. The following table summarizes the donations received this month.
Purpose Donor Amount
First Responders Community
Donation Toyota of Tri-Cities 500
4th of July Family Ride Prizes Rolling Hills Chorus 300
Battle of the Bands – 4th of July State Farm Insurance 1,000
Youth Scholarships Coke Cola-DC Vending 1,953
Total Donations 3,753
Expenditures
Overall, expenditures are at 26% of budget, slightly less than the elapsed time.
Certain expenditures, particularly in the Services and Supplies categories, do
not occur evenly throughout the year. As of end of July 29% of the total
Services budget was expended. Some of the largest services expenses were
related to the library contract and Police Department services such as vehicle
leases, body camera contract and dispatch contract.
Overtime expenditures across all City departments within General Fund
totaled $959,974 for the reporting period. Of this amount, 98% was attributed
to the Police and Fire divisions, which fall under the Public Safety reporting
function. This concentration reflects the essential and often unpredictable
Page 44 of 82
nature of public safety operations, where overtime is frequently necessary to
maintain 24/7 emergency response coverage, address staffing shortages, and
support critical incidents. Further, there are vacancies within Fire,
Ambulance and Police departments which contribute to the overtime costs as
existing employees are covering essential responsibilities to maintain service
levels. While vacancies result in salary and benefit savings, these savings are
partially offset by the additional overtime required. W hen netting salary and
benefit savings from understaffing against the associated overtime costs, the
result is an overall increase of approximately $119K in expenses.
Overtime costs have shown a downward trend compared to previous years.
While this reduction is a positive step, overtime remains a substantial budget
item for the City. Further, this is expected to significantly increase in the
coming months due to typical increases during summer months and
anticipated absences. Continued monitoring and process evaluation will be
essential to maintain this downward trajectory and manage costs effectively.
3-Year Trend Overtime
Jan-July 2023 Jan-July 2024 Jan-July 2025
1,466,296 1,468,744 959,974
Contracts between $100,000 and $300,000
During July, a contract with DKS Associates was signed for the
Comprehensive Safety Action Plan totaling $276,145.
Expense Type - PUBLIC SAFETY 25-26 Budget 2025 Actuals
Expectation
if fully
staffed
Wages & Benefits, excl. OT 53,882,012 14,280,548 15,086,963
Overtime 3,384,598 926,241
Salary Savings due to vacancies (806,416)
Net Impact of OT against salary savings 119,825
Page 45 of 82
General Fund Outlook and Use of Reserves
Based on year-to-date activity and current trends, updated projections for the
General Fund indicate that revenues and expenditures are not fully aligned
with the adopted budget. While some departments are tracking close to
budgeted levels, others are experiencing revenue shortfalls as noted in the
revenue table. The most significant variances within the General Fund are
being driven by permitting revenue and timing of inter -departmental
revenue.
The adopted budget anticipated the use of approximately $5.05M in reserves
in 2025 for operations and approximately $2.7M of usage of capital bond
proceeds received in prior years. Current projections indicate that the General
Fund may require closer to $6.5M in reserves for operations, reflecting the
combined effect of revenue shortfalls and expenditure pressures. The primary
reason for the potential need to use additional reserves is that revenue is
coming in lower than projected. While expenditures are being monitored and
managed, the shortfall on the revenue side reduces the available resources to
cover operating costs, resulting in greater reliance on reserves to balance the
budget. Historically, revenue collections tend to increase significantly in the
fourth quarter; however, we need to be cautious not to rely too heavily on this
trend when evaluating our year-end position.
Staff will continue to monitor General Fund projections closely and
implement corrective measures as needed to maintain a stable financial
position.
Page 46 of 82
67%
3%
4%13%
General Fund Report
July 2025
A monthly snapshot of Pasco’s General Fund through July 31, 2025
2025
F I N A N I C A L S U M M A R Y A T A G L A N C E
Net Position: -$5,504,387 (includes operational and capital impacts; reflects
use of reserves)
Revenue Sources: 68% of total revenue is from taxes
Services Budget Used: 29% (major costs include library contract, police vehicle
leases, body-worn camera contract, and dispatch services)
Overtime Budget Used: 28% Mainly from Police and Fire under Public
Safety; trending lower than prior years and expect to meet budget.
Encumbered Funds: $5,543,275 (includes $5.3M in Services)
R E V E N U E
Parks & Rec Sponsorships Received
(JULY)$3,753
Taxes
Transfer &
Investment Interest
Licenses &
Permits
Charges for
Goods & Services
2%
2%
Fines &
Penalties
Capital Asset
Sale
As of July, taxes made up 68% of total
General Fund revenue, led by sales tax
collections of $11.1M, supported by strong
retail activity. Property tax contributed $8.1M
following the April installment, helping stabilize
cash flow. Utility taxes reached $8.3M, about
$1.4M more than last year. Overall, tax
revenue is $1.5M higher than the same period
in 2024. Other sources like gambling and
admission taxes are received quarterly and
remain below prior-year levels. If trends
continue, current projection will be about
$700K under budget for 2025.
Tax Type 2025 YTD 2024 YTD
Sales $11,144,051 $11,371,373
Property $8,141,931 $7,527,963
Utility $8,290,350 $6,896,142
Gambling, Admission,
Leasehold $86,413 $354,440
9%
Misc. &
IntergovernmentalPage 47 of 82
4%13%46%
Permitting activity continues to trend below prior-year
levels, reflecting broader economic and political
influences. Through July, the City issued 1,248 permits,
totaling $197.6 million in project value, compared to
1,677 permits and $314.9 million in 2024. The decline is
most notable in commercial, industrial, and large-scale
development sectors.
Seasonal factors, including weather conditions, may
also be contributing to slower issuance. Staff will
continue monitoring these trends and assessing
potential impacts on building-related sales tax revenue
and overall General Fund performance.
5%11%
Residential
79.1%
Commercial
18.3%
Industrial
2.6%
Permit Type
YTD
2025
Count
YTD 2025
Value
YTD
2024
Count
YTD 2024
Value
Commercial 228 $86,038,309 353 $131,796,746
Industrial 33 $23,134,039 37 $97,212,556
Residential
(incl. mobile
homes)
987 $88,383,686 1287 $85,856,088
O V E R V I E W
Transportation Transfers & Interest
on long term debt
Public Safety
C O N T R A C T S P E R M I T T R E N D S
K E Y H I G H L I G H T S
Revenue is 4% below target and may result in higher usage of reserves than expected by about $1M
This report reflects a point-in-time snapshot—not final outcomes
These insights guide decision-making throughout the biennium
Natural &
Economic
Cultural &
Community
During the reporting period, operating expenditures exceeded operating revenues, resulting in a net loss of $3,840,737. When combined with capital
impacts, the total reduction to the General Fund balance was $5,504,387, reflecting increased reliance on reserves. As always, it’s important to note
that revenue and expenditure timing does not always align. Key revenue sources such as gambling and admission taxes are received quarterly have
significantly decreased this year. Property taxes are collected in two large installments, April and October. The first installment received in April helped
stabilize cash flow, while sales tax revenue continues to perform well, driven by strong retail activity and online sales.
By the end of July, approximately 29% of the biennium had elapsed. Total General Fund revenues reached 25% of budget, slightly below target due to
cyclical patterns and slower permitting activity. Charges for Services revenue was at 26% of budget, supported by interdepartmental engineering
services billed monthly. Investment income reached $714,488, or 63% of budget, thanks to proactive liquidity management and favorable market
conditions.
Expenditures remained relatively steady, with Services at 29% of budget and Personnel at 26%. Overtime costs totaled $959,974, with 98% incurred
by Police and Fire, reflecting the essential nature of emergency services and ongoing staffing vacancies. While overtime is trending lower than
previous years, seasonal factors and planned absences are expected to drive costs upward in the coming months. Continued monitoring and strategic
adjustments will be key to maintaining financial stability through the remainder of the biennium.
P E R M I T S
21%
General
Government
DKS Associates
Comprehensive Safety Plan
Amount: $276,145
Page 48 of 82
G E N E R A L F U N D O U T L O O K A N D U S E O F R E S E R V E S
Based on year-to-date activity and current trends, updated projections for the General
Fund indicate that revenues and expenditures are not fully aligned with the adopted budget.
While some departments are tracking close to budgeted levels, others are experiencing
revenue shortfalls as noted in the revenue table. The most significant variances within the
General Fund are being driven by permitting revenue and timing of inter-departmental
revenue.
The adopted budget anticipated the use of approximately $5.05M in reserves in 2025 for
operations and approximately $2.7M of usage of capital bond proceeds received in prior
years. Current projections indicate that the General Fund may require closer to $6.5M in
reserves for operations, reflecting the combined effect of revenue shortfalls and expenditure
pressures. The primary reason for the potential need to use additional reserves is that
revenue is coming in lower than projected. While expenditures are being monitored and
managed, the shortfall on the revenue side reduces the available resources to cover
operating costs, resulting in greater reliance on reserves to balance the budget. Historically,
revenue collections tend to increase significantly in the fourth quarter; however, we need to
be cautious not to rely too heavily on this trend when evaluating our year-end position.
Staff will continue to monitor General Fund projections closely and implement corrective
measures as needed to maintain a stable financial position.
Page 49 of 82
AGENDA REPORT
FOR: City Council September 1, 2025
TO: Harold L. Stewart II, City Manager City Council Workshop
Meeting: 9/8/25
FROM: Maria Serra, Director
Public Works
SUBJECT: Resolution - Change Order No. 4 for Wastewater Treatment Plant
Phase minute (5 Apollo staff Contract Construction 2A with
presentation)
I. ATTACHMENT(S):
Resolution
Exhibit A - Change Order No. 4
Attachment 1 - Summary of Change Order No. 4 Items
Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion Only
III. FISCAL IMPACT:
Engineer's Construction Estimate $19,273,122.00
Awarded Construction Contract $13,996,917.00
Previously Approved Change Orders No. 1 - 3 $350,450.26
Proposed Change Order No. 4 $314,349.26
New Contract Total $14,661,716.52
The project construction is funded through a State Revolving Fund low interest
loan awarded by the Washington State Department of Ecology under loan
agreement WQC-2024-Pasco-00007, which was authorized through Council
adoption of Resolution No. 4424 on March 4, 2024.
The proposed change order can be accommodated within the project change
order allowance line item of $711,345.00, as authorized within the WQC-2024-
Pasco-00007 loan agreement.
Total construction contract changes, including proposed Change Order No. 4,
represent approximately 4.7% of the original awarded contract amount.
Page 50 of 82
IV. HISTORY AND FACTS BRIEF:
The construction contract for the Wastewater Treatment Plant (WWTP) Phase
2A Plant Improvements project was awarded to Apollo, Inc. (Apollo) on March
20, 2023. Since construction began, three (3) Change Orders (COs) have been
approved as follows:
Previously approved changes orders addressed minor design changes,
removal of work, fire alarm system modifications, electrical modifications,
structural modifications, system functionality and safety for future operations.
These change orders were approved either through the authority delegated to
the City Manager or through Council action, as appropriate. Change Orders
Nos. 1 through 3 totaled $350,450.26.
V. DISCUSSION:
The proposed Change Order (CO) combines a series of smaller components,
identified as Change proposal requests (CPRs) and Work Change Directives
(WCD). These were identified, reviewed, and packaged for approval into
proposed CO No. 4.
All CPR and WCD items packaged within CO No.4 are fully outlined and
summarized in Attachment 1 for further reference. The items within this CO
primarily address changed conditions, aging components that required either
repair or removal as encountered during construction, and improvements for
future maintenance and operational efficiencies.
Change Order No. 4 includes a series of items categorized into site work,
mechanical/electrical improvements and instrumentation upgrades. Site-related
work includes, for example, additional yard hydrant, and increased number of
concrete collars, additional surface restoration and slope protections with
landscape rock, added concrete at polymer building. Mechanical, electrical
and controls enhancements account for removal of the sludge fast fill system,
field modifications to the Centrisys dewatering system to optimize performance
and rebuilding the secondary scum pump, the installation of a sludge density
analyzer and cleaning/modifying the dewatering centrate bypass system.
In some cases, the extent of change order work performed was difficult to
assess due to unknown or changing site conditions requiring further
exploratory investigation prior to evaluation of cost proposals. Such change
proposals were tracked as time and materials force account costs while the
remainder of changes with fully defined scope were up-front negotiated cost
estimates. Attachment 1 indicates base costs (contract additions or deducts)
associated with each CPR or WCD item without Washington state sales tax
Page 51 of 82
included.
These itemized changes constitute a fourth Change Order to the project in the
amount of $314,394.26 with no working days added to the original contract
time.
Staff recommends approval of CO No. 4 in the amount of $314,349.26 for the
Wastewater Treatment Plant - Phase 2A Plant Improvements.
Page 52 of 82
Resolution - CO No. 4 for WWTP Phase 2A - 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON.
AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO.
4 WITH APOLLO, INC. FOR THE WASTEWATER TREATMENT PLANT
PHASE 2A PLANT IMPROVEMENTS PROJECT.
WHEREAS, the City of Pasco (City) and Apollo, Inc. (Apollo) entered into a Construction
Contract on March 20, 2023, for construction of the Wastewater Treatment Plant (WWTP) Phase
2A Plant Improvements; and
WHEREAS, previously approved Change Orders No. 1 and No. 2 were under the authority
provided to the City Manager; and
WHEREAS, previously approved Change Order No. 3 was approved by Council on March
17, 2025, via Resolution No. 4575; and
WHEREAS, proposed Change Order No. 4 is being issued to address changes related to
unforeseen site conditions at an aging operating treatment facility construction site in addition to
design modifications and enhancements identified to improve functionality of new treatment
systems and associated components; and
WHEREAS, the $314,349.26 amount of Change Order No. 4 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.
4 with Apollo.
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. 4 between the City of Pasco and Apollo as attached hereto and incorporated herein as
Exhibit A.
Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby
authorized to execute said Change Order No. 4 on behalf of the City of Pasco.
Be It Further Resolved, that this Resolution shall take effect immediately.
Page 53 of 82
Resolution - CO No. 4 for WWTP Phase 2A - 2
PASSED by the City Council of the City of Pasco, Washington, on this ___ day of
_______, 2025.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Page 54 of 82
Resolution Exhibit A
Change Order No. 4
Wastewater Treatment Plant (WWTP) PH2A Construction
Located in City of Pasco’s Records Retention Management S oftware
(Laserfiche) under City Council’s 2020-2029 Resolutions folder
Link:
https://docs.pasco-wa.gov/WebLink/DocView.aspx?id=1305612&dbid=0&repo=CityofPasco
Page 55 of 82
AƩachment 1
1
Summary of WWTP Phase 2A Improvements Change Order No. 4 Items (Amounts w/o Tax Included)
CPR 027 – Sludge Fast Fill Removal (ROM Final) (add of $26,333.86): DemoliƟon of the exisƟng
sludge fast fill structure and mechanical supply. This piping and valving is no longer needed. If
not removed now it will need to be removed later but will be more difficult and costly. No
addiƟonal working days included.
CPR 033 – Landscape Rock Near Centrate Tank (add of $6,592.78): The surface restoraƟon
between the centrate tank and the centrate pump staƟon needs a necessary revision due to
relocaƟon of a compressor which has also created steeper grades. Fill will be provided around
the concrete sidewalk with fractured landscaping rock to hold back the underlying soil and
prevent erosion. No addiƟonal working days included.
CPR 035 – Yard Hydrant at Solids Loadout (add of $11,290.70): City operaƟons staff requested a
frost-free yard hydrant. ConnecƟon will be made to exisƟng line near the concrete solids loadout
area. No addiƟonal working days included.
CPR 040 – Network Rack (add of $1,419.02): The City IT Department requires its camera security
system to be a wall-mounted network rack. The Contractor is to provide and install. No
addiƟonal working days included. No addiƟonal working days included.
CPR 046 – UV Building Outlet (add of $2,739.86): City operaƟons staff requested an exterior
electrical outlet on the UV building in the shared wall of the new electrical room. Includes
exterior rated outlet, conduit, and conductors. No addiƟonal working days included.
CPR 047 – SHB Door Light (add of $2,240.44): The City operaƟons staff requested a light above
the door, below the awning, for the solids handling building main entry doorway to provide
addiƟonal light. No addiƟonal working days included.
CPR 048 – Sludge Density Analyzer (add of $29,384.99): MounƟng modificaƟons are required
for Sludge Density Analyzers. No addiƟonal working days included.
CPR 049 – Centrisys Field ModificaƟons (add of $10,874.06): During installaƟon, the dewatering
centrifuge manufacturer recommended modificaƟons to the inlet, dewatering centrifuge
sampling and thickening centrifuge supply polymer piping. These addiƟonal items will help with
operaƟons staff control and maintenance. No addiƟonal working days included.
CPR 055 – Concrete Collars (add of $5,534.69): The City operaƟons staff requested concrete
collars around all manhole, valve boxes and cleanouts in areas of new asphalt. This will protect
the surface from deterioraƟon around these items. No addiƟonal working days included.
Page 56 of 82
AƩachment 1
2
CPR 057 – Backflow Preventers SHB and Polymer (add of $6,316.16): The addiƟon of backflow
preventers is required to prevent clean water from flowing backward into the clean water
system. No addiƟonal working days included.
CPR 060 – MCC UPS Receptacle (add of $ 8,029.31): City operaƟons staff requested the addiƟon
of receptacles in the Solids Handling Building Motor Control Centers and Centrate Pump StaƟon
Motor Control Centers for all Human Machine Interface (HMI) screens. No addiƟonal working
days included.
CPR 063 – Surface RestoraƟon (add of $ 119,161.79): AddiƟonal areas of surface restoraƟon are
needed to the WWTP site to provide operaƟons staff a surface in good condiƟons and beƩer for
maintenance. As City equipment drives across the site, the asphalt will conƟnue to degrade and
become a larger problem without improvements. No addiƟonal working days included.
CPR 065 – Sec Scum Lobepro Rebuild (add of $ 8,468.56): During startup of the new Waste
AcƟvated Sludge pumps, a Secondary Scum Pump (LobePro) ran dry overnight and overheated
causing premature wear to the lobes. The City operaƟons staff requested the pump to be rebuilt
with the addiƟon of an external thermal sensor to prevent motor/pump from overheaƟng in the
future. No addiƟonal working days included.
CPR 070 – UV Skim Coat (add of $ 24,729.50): The City operaƟons staff is requested to coat one
of the two UV channels as it has experienced degradaƟon over Ɵme. Aggregate has fallen out of
the profile. No addiƟonal working days included.
CPR 073 – Polymer Building Concrete (add of $ 3,044.82):
Item 1: City operaƟons staff requested to pour a concrete step in front of the polymer skids so
staff can beƩer access the HMI screens. No addiƟonal working days included.
Item 2: City operaƟons staff washes polymer totes at a storm drain catch basin. The catch basin
is not channeled, and polymer collects in the sump area. City operaƟons staff requested for this
area to be filled with concrete and channeling to be provided from the catch basin inlets/outlets
so the polymer will not collect. No addiƟonal working days included.
WCD 006 – Dewatering Centrate Bypass Clean and ModificaƟons (add of $22,498.10): The
exisƟng configuraƟon is allowing solids to seƩle inside the Biosolids Dewatering Centrate storage
tank. Improvements to the exisƟng tank are required and include the installaƟon of a temporary
gravity centrate bypass, cleaning the centrate tank and modificaƟons to the mixing system. No
addiƟonal working days included.
Page 57 of 82
Pasco City Council
September 8, 2025
Workshop
Pa
g
e
5
8
o
f
8
2
WWTP Phase 2A –
Change Order No. 4
September 8, 2025
Pasco City Council
Pa
g
e
5
9
o
f
8
2
WWTP Phase 2A Improvements Update
3
Construction Activities
Approximately 95% complete as
of August 2025.
Partial turnover to WWTP
Operations was achieved earlier in
2025.
Anticipated project completion
by Q1 2026
Pa
g
e
6
0
o
f
8
2
WWTP Phase 2A Construction Costs
4
CostContract Items
$19,273,122.00Engineer’s Estimate
$13,996,917.00Bid Award
$ 350,450.26 (2.5%)Change Orders No. 1-3
$ 314,349.26(+2.2%)Change Order No. 4
$14,661,716.52New Contract Amount
Pa
g
e
6
1
o
f
8
2
WWTP Phase 2A Change Order No. 4
5
The proposed Change Order No. 4 adds $314,349.26 (including sales tax) to the project and
brings the total construction contract amount to $314,349.26. The proposed Change Proposal
Requests (CPRs) and Work Change Directives (WCDs) line items within Change Order No. 4 are
summarized below:
CPRs – Summarized in Agenda Packet Attachment 1 (Add of $266,160.54 w/o tax)
WCDs – Summarized in Agenda Packet Attachment 1 (Add of $22,498.10 w/o tax)
Sales Tax – (Add of $25,690.62)
Each CPR and WCD was verified as necessary additions, and negotiated with the Contractor.
They were found to be reasonable by both City Staff, the Consultant/Construction Management
(CM) team, and approved by Ecology.
Staff recommends approval of Change Order No. 4.
Pa
g
e
6
2
o
f
8
2
Questions?
Pa
g
e
6
3
o
f
8
2
AGENDA REPORT
FOR: City Council September 2, 2025
TO: Harold L. Stewart II, City Manager City Council Workshop
Meeting: 9/8/25
FROM: Maria Serra, Director
Public Works
SUBJECT: Resolution - Professional Services Agreement Amendment No. 2 with
RH2 Engineering, Inc. for Design Services for the Process Water Reuse
Facility staff Irrigation System Farm Upgrades Project (5 minute
presentation)
I. ATTACHMENT(S):
Resolution
Exhibit A - Professional Services Agreement
Power Point Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Summary:
Original PSA $462,640.00
Amendment No. 1 $68,013.00
Proposed Amendment No. 2 $306,744.00
New PSA Total $837,397.00
This work will be absorbed in the project cost, paid by a secured Revenue Bond
for the PWRF Utility (Fund 460).
IV. HISTORY AND FACTS BRIEF:
The Process Water Reuse Facility (PWRF) Irrigation System Farm Upgrades
Project series current the of encompasses fourth the of phase planned
improvements and modifications to the PWRF. This project (informally referred
to as PWRF Improvements Phase 4) will replace existing irrigation system
components nearing their end-of-life, construct new irrigation assets to convey
the pretreated process water to the City-owned land application farm circles,
Page 64 of 82
and extend the system to newly created land application areas from recently
purchased parcels.
The City secured the professional services of RH2 to provide holistic planning,
design and permitting support services for the proposed improvements to
implement the land treatment system expansion consistent with the “Process
Water Reuse Facility Engineering Report”approved by the State of
Washington Department of Ecology on April 12, 2023.
Prior amendment No. 1 to the PSA addressed various evolving project needs.
These included added Field Investigations and background review, 60 and 90
percent Irrigation Pump Station (IPS) Improvements Designs, and Bid ready
plans and specifications.
As funding availability and immediate needs for the facility were further refined,
the scope of the project was subject to revisions and adjustments.
V. DISCUSSION:
The proposed Amendment No. 2 to RH2 Professional services agreement
increases the scope of work for the consultant. The amendment also includes
additional analysis and design for pipelines and IPS (Irrigation Pump Station)
design adjustments to reflect the revised site work, additional distribution
system improvements, and updated controls for the system. The majority of the
amendment provides for consultant services during construction, to assist with
engineering services through the duration of project and assistance during
project closeout.
Staff has reviewed and recommends approval of Amendment No. 2 to the PSA
with RH2 Engineering in the amount of $306,744.00 for the PWRF - Phase 4
Irrigation System Farm Upgrades project.
Page 65 of 82
Resolution - PWRF PH 4 PSA Amendment No. 2 - 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2
FOR THE PROFESSIONAL SERVICES AGREEMENT WITH RH2
ENGINEERING, INC. FOR THE DESIGN OF THE PROCESS WATER REUSE
FACILITY IMPROVEMENT PHASE 4: IRRIGATION SYSTEM FARM
UPGRADES PROJECT.
WHEREAS, the City of Pasco (City) and RH2 Engineering, Inc. entered into a
Professional Service Agreement on May 9, 2023, to provide Engineering services with respect to
the Process Water Reuse Facility (PWRF) Improvements project; and
WHEREAS, the City and RH2 Engineering Inc. entered into Amendment No. 1 on
November 23, 2023, to provide additional professional design engineering services; 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 Amendment No. 2
with RH2 Engineering, Inc.
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
Amendment No. 2 between the City of Pasco and RH2 Engineering, Inc., as attached hereto and
incorporated herein as Exhibit A.
Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby
authorized, empowered, and directed to execute said Amendment No. 2 on behalf of the City of
Pasco; and to make minor substantive changes as necessary to execute this Amendment.
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.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Page 66 of 82
RH2 Engineering, Inc. – Amendment No. 2 to PSA
PWRF Irrigation System Improvements – Project No. 23465
Version 08.15.2025 Page 1
AMENDMENT NUMBER 2 to
PROFESSIONAL SERVICES AGREEMENT
PWRF Irrigation System Improvements
PROJECT: 23465
AGREEMENT NO. 23-014
WHEREAS, the City and RH2 Engineering, Inc. entered into a Professional Services
Agreement on 5/9/2023 to provide engineering services with respect to the PWRF Irrigation
System Improvements project.
WHEREAS, the City and RH2 Engineering, Inc. entered into an Amendment No. 1 to
provide additional engineering services on 11/27/2023.
NOW, THEREFORE, this agreement is amended to allow RH2 Engineering, Inc. to
provide additional professional engineering services, services during construction, and additional
time of performance as described in Exhibit A.
1. Scope of Work:
See Exhibit A.
2. Fee:
The compensation for the work is based on a Time and Materials Basis not to exceed
the amount of $306,744.00 for a total authorization amount of $837,397.00. See
Exhibit B for full breakdown.
3. Time of performance:
The services shall now be complete for the project on or before 12/31/2026.
DATED THIS DAY______________________________.
[date of execution]
CITY OF PASCO, WASHINGTON RH2 ENGINEERING, INC.
Harold L. Stewart II, City Manager Dan Mahlum, PE – Principal
Exhibit A
Page 67 of 82
1
9/2/2025 11:36:54 AM J:\Data\PSC\23-0092\00 Contract\A-2\A-2_SOW_PWRF Irrigation System Improvements.docx
Scope of Work
Amendment No. 2
City of Pasco
PWRF Irrigation System Improvements
Additional Work
September 2025
Background
The City of Pasco (City) has selected RH2 Engineering, Inc., (RH2) to provide professional services to
design and permit upgrades to its Process Water Reuse Facility (PWRF) Irrigation Pump Station (IPS),
as well as extensions and upgrades to the transmission and distribution of its treated and clean water
pipelines for its land treatment system (LTS). These upgrades are hereby referenced as the PWRF
Phase 4 Irrigation System Improvements.
During design, funding availability changed, and alternate sites for LTS expansion were chosen by the
City based on purchase/sale negotiations with landowners and comments from the Washington
State Department of Ecology (Ecology). Available funding and alternate sites affected the pipe sizing
and alignments for the LTS expansion. This amendment captures the level of effort necessary to
accommodate these changes and to provide limited support during construction. Subtask numbering
is continued from the original contact and previous amendments.
Task 3 – Analysis and Preliminary Design (30 Percent)
Objective: Determine the flow capacity of the IPS and the diameter of distribution mains and IPS
mechanical piping, and incorporate design elements into the preliminary design. Prepare a
preliminary Engineer’s opinion of probable construction cost (OPCC). RH2 will coordinate with Valley
Science and Engineering and Geophysical Survey as subconsultants to support this Task.
Approach:
Remove the U.S. Bureau of Reclamation (Reclamation) South and future Washington State
Department of Natural Resources parcels from the process water and fresh water hydraulic
model, and add future demands for parcels adjacent to the NE Reclamation parcel. Resize
proposed pumps and force mains to accommodate reallocated demands.
Revise the predesign reports (process water and freshwater) based on updated hydraulic
modeling efforts. Prepare a preliminary OPCC.
Assumptions:
•Piping to the NE Reclamation parcel (Circle 14) will be upsized to accommodate future acreage
to the east.
•City South (Circle 17) will remain in the hydraulic model.
•The SE Reclamation parcel (Circles 16a and 16b) will remain in the hydraulic model.
EXHIBIT A
Page 68 of 82
City of Pasco Exhibit A
PWRF Irrigation System Improvements Scope of Work
Additional Work Amendment No. 2
2
9/2/2025 11:36:54 AM J:\Data\PSC\23-0092\00 Contract\A-2\A-2_SOW_PWRF Irrigation System Improvements.docx
Provided by City:
• Input on future parcels and acres that could be incorporated into the LTS.
RH2 Deliverables:
• Updated predesign reports in electronic PDF.
• Preliminary OPCC in electronic PDF.
Task 5 – 60-Percent IPS and Pipeline Design
Objective: Prepare updated 60-percent design plans, specifications, and OPCC reflecting revised site
work, distribution system improvements, electrical and structural work, and updated
communication strategies.
Approach:
Remove the Reclamation South and City South parcels from the process water and freshwater
LTS distribution system design plans per City direction.
Upsize distribution piping going to the NE Reclamation parcel to serve adjacent parcels as
identified by the City.
Provide up to eight (8) hours of ground penetrating radar to locate buried utilities.
Incorporate utility linework into plans.
Conduct a site visit to evaluate the feasibility of using radio communication for three (3) new
pivots. Revise the design to incorporate radios in lieu of fiber, if feasible.
Prepare design for power and controls to the booster pump station (BPS) near Circles 13
and 14.
Update the OPCC based on proposed design updates identified in this Scope of Work.
Assumptions:
• The 60-percent review comments will be constrained to details that were developed
subsequent to the 30-percent review submittal, or that were revised or unresolved during the
30-percent review process.
• Fiber communication will be stubbed at the IPS and routed through the Blasdel easement.
• Radio communication will be used at the three (3) new pivots if determined feasible during
the site visit.
Provided by City:
• Timely review comments as markups on the 60-percent design plans and specifications.
Page 69 of 82
City of Pasco Exhibit A
PWRF Irrigation System Improvements Scope of Work
Additional Work Amendment No. 2
3
9/2/2025 11:36:54 AM J:\Data\PSC\23-0092\00 Contract\A-2\A-2_SOW_PWRF Irrigation System Improvements.docx
RH2 Deliverables:
• 60-percent plans and details that identify the major site, structural, mechanical, and electrical
layouts, and related details in electronic PDF.
• 60-percent OPCC in electronic PDF.
Task 6 – 90-Percent IPS and Pipeline Design
Objective: Update the 90-percent design plans, specifications, and OPCC to reflect the updated
communication improvements, including the transition from fiber to communication at the pivots.
Approach:
Develop 90-percent design drawings incorporating the revised communication layout to
replace fiber with radio systems at the three (3) new pivot locations.
Update the technical specifications to reflect the radio communication equipment,
installation requirements, and integration with existing infrastructure.
Revise the 90-percent OPCC to account for changes in communication system components,
including removal of fiber-related costs and addition of radio equipment and installation.
Provided by City:
• Timely review comments as markups on the 90-percent design plans and specifications.
RH2 Deliverables:
• Updated 90-percent plans and details in electronic PDF.
• Updated 90-percent technical specifications in electronic PDF.
• Updated 90-percent OPCC in electronic PDF.
Task 15 – Services During Construction (Limited)
Objective: Provide limited engineering services during construction to support the City. As the
engineer of record, coordinate with the City, its designated utilities, and special inspector to respond
to technical questions and issues. Services will include reviewing limited technical submittals,
responding to requests for information (RFIs), performing on-site observations, and assisting with
change proposals and change orders.
Approach:
Review limited technical submittals, as requested by the City, for general conformance to the
project specifications. Provide written comments to the City.
Respond to contractor RFIs, as requested by the City. Document and transmit responses to
the City.
Perform limited on-site observations, as requested by the City, in coordination with the City’s
designated inspector(s). Provide brief field notes summarizing observations.
Page 70 of 82
City of Pasco Exhibit A
PWRF Irrigation System Improvements Scope of Work
Additional Work Amendment No. 2
4
9/2/2025 11:36:54 AM J:\Data\PSC\23-0092\00 Contract\A-2\A-2_SOW_PWRF Irrigation System Improvements.docx
Assist with change proposals and change orders as requested by the City.
Provide programming and integration services for the controls installed during construction.
Programming will include programmable logic controllers (PLCs), operator interface screens
(OIS), and the computer-based supervisory control and data acquisition (SCADA) system. It is
assumed that the programming will be based on standard programming developed for the
City by RH2’s subsidiary, Control Systems NW LLC. Integrate the programming upgrades with
the existing City system, including connecting the existing Historian system to the SCADA
system programmed as part of this project. It is assumed that the City will purchase all
licensing and hardware needed for the SCADA portion directly from the vendor.
Observe the remote telemetry unit (RTU) components factory testing at the contractor’s
panel shop prior to installation in the field, as requested. Perform initial testing of the PLCs
and OIS on the RTU prior to installation in the field.
Provide observation and support during startup activities, including the final operation of the
project hardware/software components.
Review field records provided by the contractor and prepare construction record drawings
based on the changes.
Assumptions:
• It is anticipated that the City will be the lead inspector, lead construction contract
administration, and be responsible for day-to-day activities. A maximum of 1,105 hours have
been included in this Task to review technical submittals, respond to contractor questions,
provide limited on-site observations, assist with change orders, and provide programming and
startup services as shown in the attached Fee Estimate. If additional effort is needed, that
extra work will be mutually determined by the City and RH2.
• RH2 is not responsible for site safety, or for determining means and methods or directing the
contractor in their work.
RH2 Deliverables:
• Technical submittals in electronic PDF.
• Applicable RFI responses in electronic PDF.
• Field notes summarizing on-site observations in electronic PDF.
• Change order proposals in electronic PDF.
• PLC, OIS, and SCADA programming.
• Attendance at RTU factor testing.
• Attendance at startup activities.
• Construction record drawings in electronic PDF.
Page 71 of 82
City of Pasco Exhibit A
PWRF Irrigation System Improvements Scope of Work
Additional Work Amendment No. 2
5
9/2/2025 11:36:54 AM J:\Data\PSC\23-0092\00 Contract\A-2\A-2_SOW_PWRF Irrigation System Improvements.docx
Project Schedule
RH2 is prepared to commence with the work upon written authorization from the City. The revised
project design is anticipated to be completed in November 2025. Construction is anticipated from
January 2026 through July 2026.
Page 72 of 82
EXHIBIT B
Fee Estimate
Amendment No. 2
City of Pasco
PWRF Irrigation System Improvements
Additional Work
Sep-25
Description
Total
Hours
Total RH2
Labor
Total
Hours
Total CSNW
Labor
Total ALL
Hours
Total ALL
Labor
Total
Subconsultant
Total Expense Total Cost
Task 3 Analysis and Preliminary Design (30 Percent)139 30,270$ --$ 139 30,270$ -$ 2,793$ 33,063$
Task 5 60-Percent IPS and Pipeline Design 208 45,664$ 50 10,260$ 258 55,924$ 30,024$ 5,303$ 91,251$
Task 6 90-Percent IPS and Pipeline Design --$ 50 10,610$ 50 10,610$ -$ 265$ 10,875$
Task 15 Services During Construction (Limited)494 105,444$ 164 37,044$ 658 142,488$ 13,800$ 15,266$ 171,554$
PROJECT TOTAL 841 181,378$ 264 57,914$ 1,105 239,292$ 43,824$ 23,628$ 306,744$
\\corp.rh2.com\projects\Project\Data\PSC\23-0092\00 Contract\A-2\A-2_FEE_PWRF Irrigation System Improvementsv2 9/2/2025 11:38 AMPage 73 of 82
RATE LIST RATE UNIT
Professional I $175 $/hr
Professional II $191 $/hr
Professional III $213 $/hr
Professional IV $234 $/hr
Professional V $249 $/hr
Professional VI $269 $/hr
Professional VII $294 $/hr
Professional VIII $317 $/hr
Professional IX $326 $/hr
Technician I $134 $/hr
Technician II $148 $/hr
Technician III $171 $/hr
Technician IV $182 $/hr
Technician V $198 $/hr
Technician VI $217 $/hr
Technician VII $236 $/hr
Technician VIII $247 $/hr
Control Specialist I $175 $/hr
Control Specialist II $191 $/hr
Control Specialist III $213 $/hr
Control Specialist IV $234 $/hr
Control Specialist V $249 $/hr
Control Specialist VI $269 $/hr
Control Specialist VII $294 $/hr
Control Specialist VIII $317 $/hr
Control Specialist IX $326 $/hr
Control Technician I $134 $/hr
Control Technician II $148 $/hr
Control Technician III $171 $/hr
Control Technician IV $182 $/hr
Control Technician V $198 $/hr
Control Technician VI $217 $/hr
Control Technician VII $236 $/hr
Control Technician VIII $247 $/hr
Administrative I $90 $/hr
Administrative II $105 $/hr
Administrative III $124 $/hr
Administrative IV $148 $/hr
Administrative V $173 $/hr
CAD/GIS System $27.50 $/hr
CAD Plots - Half Size $2.50 price per plot
CAD Plots - Full Size $10.00 price per plot
CAD Plots - Large $25.00 price per plot
Copies (bw) 8.5" X 11"$0.09 price per copy
Copies (bw) 8.5" X 14"$0.14 price per copy
Copies (bw) 11" X 17"$0.20 price per copy
Copies (color) 8.5" X 11"$0.90 price per copy
Copies (color) 8.5" X 14"$1.20 price per copy
Copies (color) 11" X 17"$2.00 price per copy
Technology Charge 2.50%% of Direct Labor
Night Work 10.00%% of Direct Labor
Mileage $0.7000
price per mile
(or Current IRS Rate)
Subconsultants 15%Cost +
Outside Services at cost
RH2 ENGINEERING, INC.
2025 SCHEDULE OF RATES AND CHARGES
Rates listed are adjusted annually. Page 74 of 82
Pasco City Council
September 8, 2025
Workshop
Pa
g
e
7
5
o
f
8
2
PWRF Phase 4 Irrigation
Systems PSA Amendment No. 2
September 8, 2025
Pasco City Council
Pa
g
e
7
6
o
f
8
2
PWRF Phase 4 Professional Services Costs
3
Additional
Irrigation
Pa
g
e
7
7
o
f
8
2
PWRF Phase 4 Professional Services Costs
4
The proposed Amendment No. 2 adds $306,744.00 to the project and brings the total
professional services agreement amount to $837,397.00. The added services for Amendment No.
2 are summarized below:
Task 1 – Analysis and Preliminary Design updates due to updated site work and hydraulic
profiles.
Task 5 & 6 – Updated Design for Intake Pump Station and Pipeline.
Task 15 – Additional services during construction.
Each professional services agreement was verified as necessary additions and negotiated with
City staff. They were found to be reasonable and needed by City Staff.
Staff recommends approval of PSA Amendment No. 2.
Pa
g
e
7
8
o
f
8
2
PWRF Phase 4 Professional Services Costs
5
CostProfessional Services Agreement
$ 462,640.00Original PSA
$ 68,013.00PSA Amendment No. 1
$306,744.00PSA Amendment No. 2
$837,397.00New Professional Services Agreement
Pa
g
e
7
9
o
f
8
2
Questions?
Pa
g
e
8
0
o
f
8
2
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 81 of 82
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 82 of 82