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HomeMy WebLinkAbout2026.01.20 PPFD Meeting PacketPasco Public Facilities District Board Building Regional Facilities through Community Partnerships AGENDA 4:00 PM - Tuesday, January 20, 2026; Pasco City Hall, Council Chambers & Microsoft Teams Meeting Page I. 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 1:00 p.m. on the day of each meeting. To listen to the meeting via phone, call (323) 676-6197 and use access code 311 512 666#. II. Welcome, Call To Order, and Roll Call III. Recognition of Visitors/Public Comments - This item is provided to allow the public the opportunity to bring items to the attention of the Pasco Public Facilities District Board. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Public comments will normally be limited to three minutes by each speaker. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the PPFD Board outside of formal meetings. Lastly, when called upon, please state your name and city or county residency before providing your comments. IV. Approval of Minutes 3 - 9 A. Approve PPFD Board Meeting Minutes MOTION: I move to approve the PPFD Board minutes from the December 16, 2025, and December 23, 2025, meetings. V. Claims Approval 10 A. Approval of PPFD Monthly Accounts Payable Claims MOTON: I move to approve the December 2025 PPFD claims (accounts payable) in the amount of $3,223,759.15. VI. Financial Report 11 - 19 A. December 2025 Balance Sheet, Budget Performance Report, Local Tax Distribution Report, Local Sales Tax Percentage, and Aquatic Center Budget Tracker Report VII. Reports from Committees Page 1 of 43 A. Design & Construction Committee (Gillespie & Jilek; Alternate Morrissette) B. Budget & Finance Committee (Morrissette & Bowdish; Alternate Jilek) VIII. Old Business 20 - 31 A. Resolution No. 2025-06 – New 2026-2028 Interlocal Agreement with City of Pasco MOTION: I move to approve Resolution No. 2026-01, authorizing the Executive Director to execute a new Interlocal Agreement between the City of Pasco for administrative and financial Services, and for management and operations of the new aquatic facility. IX. New Business X. Other Business A. PPFD Attorney (Whitney) B. Pasco Operations and Maintenance (Rice) 32 - 41 C. Owner’s Representative Report (Gardner) D. Ambassador Committee Report 42 - 43 E. PPFD Executive Director Report (Watkins) F. Next PPFD Board Meeting Scheduled for Tuesday, February 17, 2026 XI. Executive Session XII. Adjournment Page 2 of 43 Pasco Public Facilities District Board MINUTES 4:00 PM - Tuesday, December 16, 2025; Pasco City Hall, Council Chambers & Microsoft Teams Meeting WELCOME, CALL TO ORDER, AND ROLL CALL Pasco Public Facilities District (PPFD) President Morrissette welcomed members of the audience and called the meeting to order at 3:01 PM. Board Members Present: President Mark Morrissette, Vice President Marie Gillespie, Board Member Leonard Dietrich, and Board Member Spencer Jilek Board Members Excused: Secretary/Treasurer Caroline Bowdish Board Staff Present: PPFD Executive Director Matt Watkins City Attorney Eric Ferguson, Senior Accountant Veronica Perez, Parks & Recreation Direction Jesse Rice, Deputy City Manager Richa Sigdel, and City Clerk Debby Barham RECOGNITION OF VISITORS/PUBLIC COMMENTS No one provided comments. APPROVAL OF MINUTES Approve PPFD Board Meeting Minutes MOTION: Dr. Jilek moved to approve the PPFD Board minutes from the November 18, 2025, meeting. Seconded by Mr. Dietrich. Motion carried unanimously. 4-0 CLAIMS APPROVAL Approval of PPFD Monthly Accounts Payable Claims Ms. Perez provided a brief overview of the November 2025 accounts payable. MOTON: Dr. Jilek moved to approve the November 2025 PPFD claims (accounts payable) in the amount of $2,006,499.27. Seconded by Ms. Gillespie. Motion carried unanimously. 4-0 Page 1 of 5Page 3 of 43 Mr. Ferguson arrived at 4:04 PM. Ms. Bowdish arrived at 4:05 PM. FINANCIAL REPORT November 2025 Balance Sheet, Budget Performance Report, Local Tax Distribution Report, Local Sales Tax Percentage, and Aquatic Center Budget Tracker Report Ms. Perez provided a brief overview of the financial reports. REPORTS FROM COMMITTEES Design & Construction Committee (Gillespie & Jilek; Alternate Morrissette) Ms. Gillespie provided a brief report on the status of the Aquatic Center construction. Budget & Finance Committee (Morrissette & Bowdish; Alternate Jilek) Mr. Morrissette distributed notes from the last Budget & Finance Committee meeting that he had prepared and provided a brief explanation of the notes. OLD BUSINESS Betterments Round 6: Enhanced Sound Systems and Additional Electrical Outlets. Mr. Watkins provided a brief recap of the proposed enhanced sound system and additional electrical outlets to include in the Aquatic Facility's project. MOTION: Ms. Gillespie moved to adopt the Project Betterments – Round 6 as presented, not to exceed $226,000. Seconded by Ms. Bowdish. Motion carried unanimously. 5-0 EXECUTIVE SESSION The PPFD Board adjourned into Executive Session at 4:16 PM for 15 minutes, returning at 4:31 PM, Discussion with legal counsel about current or potential litigation per RCW 42.30.110(1)(i) with the PPFD Executive Director and the City Attorney. Page 2 of 5Page 4 of 43 At 4:32 PM President Morrissette announced that the Executive Session would continue for another 15 minutes or until 4:47 PM. President Morrissette called the meeting back to order at 4:47 PM. NEW BUSINESS Resolution No. 2025-06 – New 2026-2028 Interlocal Agreement with City of Pasco MOTION: Ms. Gillespie moved to postpone the new Interlocal Agreement with the City of Pasco for administrative and financial Services, and for management and operations of the new aquatic facility to the January 2026 PPFD Board Meeting. Seconded by Dr. Jilek. Motion carried unanimously. 5-0 Mr. Watkins suggested an ad hoc committee be formed by two PPFD Board members to speak with the attorney between now and the January 20, 2026 PPFD Board meeting regarding the proposed new Interlocal Agreement with the City of Pasco. Dr. Jilek and Ms. Gillespie volunteered to be on the ad hoc committee. Resolution No. 2025-07 - 2026 PPFD Budget Ms. Perez stated that the approval of the 2026 Budget will need to be postponed until a new budget can be prepared, as the budget currently in front of the PPFD Board includes expenditures expected after the new Interlocal Agreement with the City of Pasco has been approved. Ms. Sigdel stated and Mr. Watkins affirmed that the PPFD Board may need to hold a special meeting before the end of the year to approve an amended 2026 PPFD Budget. Resolution No. 2025-08 - Personal Services Agreement for Legal Counsel Services with Cable Huston LLP Mr. Watkins provided a report on the proposed agreement for legal counsel services from Cable Huston, LLP starting January 1, 2026. He then introduced Tyler Whitney, a local attorney working for Cable Huston LLP. Mr. Whitney described his background and qualifications. The PPFD Board and Mr. Whitney held a question and answer period regarding his legal counsel experience. MOTION: Dr. Jilek moved to approve Resolution No. 2025-08, approving the Personal Services Agreement for legal services between the Pasco Public Page 3 of 5Page 5 of 43 Facilities District and Cable Huston, LLP. Seconded by Ms. Bowdish. Motion carried unanimously. 5-0 OTHER BUSINESS Attorney Report Mr. Ferguson stated that his services will end on December 31, 2025. Mr. Dietrich wished Mr. Ferguson the best in his future endeavors and the PPFD Board echoed the same well wishes. Pasco Operations and Maintenance Mr. Rice stated that City of Pasco staff has been working with the regional safety group that was recently formed. He continues to work on the draft operation and maintenance plans for the Aquatic Center and hopes to provide it to the PPFD Board in the future as outlined in the proposed Interlocal Agreement. Owner’s Representative Report Project Manager Jack Hartwig provided an overview of the monthly Owner's Representative report. Ambassador Committee Report Paul Whitemarsh reported on a Branding and Marketing focus group meeting he recently attended. He stated that people are getting excited about the Aquatic Center. PPFD Executive Director Report Mr. Watkins reported on the Branding and Marketing activities during the past month. He announced that the next focus meeting is scheduled on January 8, 2026. Lastly, he provided a brief recap of the activities and tasks completed in the past year and the to-do list for 2026. Next PPFD Board Meeting is scheduled for Tuesday, January 20, 2026. ADJOURNMENT There being no further business, the meeting was adjourned at 5:22 pm. PASSED AND APPROVED THIS ___ DAY OF __________, 20__ Page 4 of 5Page 6 of 43 APPROVED: Mark Morrissette, President Debra Barham, MMC Page 5 of 5Page 7 of 43 Pasco Public Facilities District Board MINUTES 3:00 PM - Tuesday, December 23, 2025; Pasco City Hall, Council Chambers & Microsoft Teams Meeting WELCOME, CALL TO ORDER, AND ROLL CALL Pasco Public Facilities District (PPFD) President Morrissette welcomed members of the audience and called the meeting to order at 3:01 PM. Board Members Present: President Mark Morrissette, Vice President Marie Gillespie (remote), Board Member Leonard Dietrich, and Board Member Spencer Jilek Board Members Excused: Secretary/Treasurer Caroline Bowdish Board Staff Present: PPFD Executive Director Matt Watkins (remote) City Attorney Eric Ferguson, Senior Accountant Veronica Perez, and City Clerk Debby Barham RECOGNITION OF VISITORS/PUBLIC COMMENTS No public comments were given. NEW BUSINESS Resolution No. 2025-07 - 2026 PPFD Budget Ms. Perez provided a brief overview of the 2026 PPFD Budget. The PPFD Board and Ms. Perez continued discussion on the proposed budget. MOTION: Dr. Jilek moved to approve Resolution No. 2025-07, to approve the 2026 Pasco Public Facilities District Budget. Seconded by Mr. Dietrich. Motion carried unanimously. 4-0 ADJOURNMENT There being no further business, the meeting was adjourned at 3:14 pm. PASSED AND APPROVED THIS ___ DAY OF __________, 20__ Page 1 of 2Page 8 of 43 APPROVED: Mark Morrissette, President Debra Barham, MMC Page 2 of 2Page 9 of 43 Dec-25 Sum of Amount GL Date Subledger Account Description Vendor/Customer Item Description Dec Accounts Payable Advertising TRI CITY HERALD PPFD RFP PLACE IN BID IPL0289786 356.11 Advertising Total 356.11 Legal Combined Services KERR FERGUSON LAW PLLC PPFD LEGAL SERVICES OCT 2025 1,554.00 Legal Combined Services Total 1,554.00 Miscellaneous Services VERIZON WIRELESS WIRELESS SVC - PASCO FACILITES DISTRICT OCT 22 - NOV 21 2025 20.02 Miscellaneous Services Total 20.02 Organizational Services CITY OF PASCO NOVEMBER 2025 - SUBSIDY 10,379.46 KENNEWICK PUBLIC FACILITIES DISTRICT PFD SALES TAX REC'D BY PASCO AND SENT TO KEN FOR NOV 2025 79,188.38 Organizational Services Total 89,567.84 Professional Services WATKINS ENDEAVOR LLC SERVICES FOR PPFD NOV 2025 9,513.39 FOCAL POINT MARKETING LLC PASCO AQUATIC BRANDING PHASE 1A 2,000.00 Professional Services Total 11,513.39 Const Contract (Primary)BOUTEN CONSTRUCTION CO PPFD AQUATIC FACILITY PROJECT OCTOBER 2025 3,104,180.65 WENAHA GROUP INC SERVICES FOR PPFD/AQUATIC CENTER SEPTEMBER 2025 16,567.14 Const Contract (Primary) Total 3,120,747.79 Accounts Payable Total 3,223,759.15 Grand Total 3,223,759.15 Pa g e 1 0 o f 4 3 Current YTD Prior Year Account Account Description Balance Total Actual Net Change Change % Fund Category External Fund Type Fund 931 - Pasco Public Facility District ASSETS 10 10.1010 Cash 1,489,144.95 9,049,510.53 (7,560,365.58)(83.54) 10 - Totals $1,489,144.95 $9,049,510.53 ($7,560,365.58)(83.54%) 11 11.1130 Investments 9,000,000.00 .00 9,000,000.00 +++ 11.1141 Investments-Restricted Bond Reserve 19,000,000.00 .00 19,000,000.00 +++ 11 - Totals $28,000,000.00 $0.00 $28,000,000.00 +++ 12 12.1210 Taxes Receivable - Sales .00 1,060,600.93 (1,060,600.93)(100.00) 12 - Totals $0.00 $1,060,600.93 ($1,060,600.93)(100.00%) 15 15.1539 Restricted Cash - Bond Proceeds ST 3,711,169.03 42,854,852.46 (39,143,683.43)(91.34) 15 - Totals $3,711,169.03 $42,854,852.46 ($39,143,683.43)(91.34%) 17 17.1710 Land 4,626,380.41 4,626,380.41 .00 .00 17 - Totals $4,626,380.41 $4,626,380.41 $0.00 0.00% 18 18.1860 Construction in Process 2,398,271.37 2,398,271.37 .00 .00 18 - Totals $2,398,271.37 $2,398,271.37 $0.00 0.00% ASSETS TOTALS $40,224,965.76 $59,989,615.70 ($19,764,649.94)(32.95%) LIABILITIES AND FUND EQUITY LIABILITIES 21 21.2105 Accounts Payable .00 674,688.80 (674,688.80)(100.00) 21 - Totals $0.00 $674,688.80 ($674,688.80)(100.00%) 24 24.2433 2024 PFD Bond 48,255,000.00 49,035,000.00 (780,000.00)(1.59) 24.2499 Unamortized Bond Premium LT 1,509,431.10 1,509,431.10 .00 .00 24 - Totals $49,764,431.10 $50,544,431.10 ($780,000.00)(1.54%) LIABILITIES TOTALS $49,764,431.10 $51,219,119.90 ($1,454,688.80)(2.84%) FUND EQUITY 29 29.2910 Net Investment in Capital (664,927.00)(664,927.00).00 .00 29.2946 Fund Balance -Restricted Capital improvments 42,854,852.46 42,854,852.46 .00 .00 29.2990 Fund Balance -Unassigned/Unrestricted (33,419,429.66)(33,419,429.66).00 .00 29 - Totals $8,770,495.80 $8,770,495.80 $0.00 0.00% Page 1 of 2Run by Veronica Perez on 01/14/2026 10:23:57 AM Balance Sheet Through 12/31/25 Detail Listing Include Rollup Account/Rollup to Base Pa g e 1 1 o f 4 3 Current YTD Prior Year Account Account Description Balance Total Actual Net Change Change % Fund Category External Fund Type Fund 931 - Pasco Public Facility District FUND EQUITY TOTALS Prior to Current Year Changes $8,770,495.80 $8,770,495.80 $0.00 0.00% Prior Year Fund Equity Adjustment .00 .00 Fund Revenues (5,763,653.47).00 Fund Expenses 24,073,614.61 .00 FUND EQUITY TOTALS ($9,539,465.34)$8,770,495.80 ($18,309,961.14)(208.77%) LIABILITIES AND FUND EQUITY TOTALS $40,224,965.76 $59,989,615.70 ($19,764,649.94)(32.95%) Fund 931 - Pasco Public Facility District Totals $0.00 $0.00 $0.00 +++ Fund Type Totals $0.00 $0.00 $0.00 +++ Fund Category External Totals $0.00 $0.00 $0.00 +++ Grand Totals $0.00 $0.00 $0.00 +++ Page 2 of 2Run by Veronica Perez on 01/14/2026 10:23:57 AM Balance Sheet Through 12/31/25 Detail Listing Include Rollup Account/Rollup to Base Pa g e 1 2 o f 4 3 Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/ Account Account Description Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Fund 931 - Pasco Public Facility District REVENUE Dept 13 - City Mgr Prog 590 - PPFD Admin 31 31.1310 Local Sales Tax 4,800,000.00 .00 4,800,000.00 421,378.10 .00 4,302,246.27 497,753.73 90 31.1311 PFD Sales Tax 900,000.00 .00 900,000.00 76,552.14 .00 785,608.99 114,391.01 87 31 - Totals $5,700,000.00 $0.00 $5,700,000.00 $497,930.24 $0.00 $5,087,855.26 $612,144.74 89% 36 36.6110 Investment Interest & FMV changes 250,000.00 .00 250,000.00 21,457.79 .00 216,712.95 33,287.05 87 36.6112 Investment Interest Bonds .00 .00 .00 52,534.56 .00 956,982.87 (956,982.87)+++ 36.6900 Refunds, Reimbursement, Rebates 1,000.00 .00 1,000.00 .00 .00 32.63 967.37 3 36 - Totals $251,000.00 $0.00 $251,000.00 $73,992.35 $0.00 $1,173,728.45 ($922,728.45)468% Prog 590 - PPFD Admin Totals $5,951,000.00 $0.00 $5,951,000.00 $571,922.59 $0.00 $6,261,583.71 ($310,583.71)105% Dept 13 - City Mgr Totals $5,951,000.00 $0.00 $5,951,000.00 $571,922.59 $0.00 $6,261,583.71 ($310,583.71)105% Dept 98 - Budgeted Fund Balance Prog 000 - None 30 30.9999 Budget Est Beg Fund Balance (Unassigned)37,719,327.00 (28,948,831.00)8,770,496.00 .00 .00 .00 8,770,496.00 0 30 - Totals $37,719,327.00 ($28,948,831.00)$8,770,496.00 $0.00 $0.00 $0.00 $8,770,496.00 0% Prog 000 - None Totals $37,719,327.00 ($28,948,831.00)$8,770,496.00 $0.00 $0.00 $0.00 $8,770,496.00 0% Dept 98 - Budgeted Fund Balance Totals $37,719,327.00 ($28,948,831.00)$8,770,496.00 $0.00 $0.00 $0.00 $8,770,496.00 0% REVENUE TOTALS $43,670,327.00 ($28,948,831.00)$14,721,496.00 $571,922.59 $0.00 $6,261,583.71 $8,459,912.29 43% EXPENSE Dept 13 - City Mgr Prog 590 - PPFD Admin 53 53.3210 Forms Stationary Bus Cards 500.00 .00 500.00 .00 .00 77.06 422.94 15 53.3329 Technology Software < 5,000 .00 .00 .00 .00 .00 6,360.85 (6,360.85)+++ 53 - Totals $500.00 $0.00 $500.00 $0.00 $0.00 $6,437.91 ($5,937.91)1288% 54 54.4510 Dues Subscription Memberships 1,000.00 .00 1,000.00 .00 .00 .00 1,000.00 0 54.4512 Train Registration Tuition 1,000.00 .00 1,000.00 .00 .00 1,076.12 (76.12)108 54.4514 Lodging Meals Miles Airfare 1,500.00 .00 1,500.00 .00 .00 192.50 1,307.50 13 54.4524 Advertising 1,500.00 .00 1,500.00 356.11 .00 2,024.99 (524.99)135 54.4530 Legal Combined Services 15,000.00 .00 15,000.00 1,554.00 .00 10,896.50 4,103.50 73 54.4540 Organizational Services 950,000.00 .00 950,000.00 89,567.84 .00 820,299.39 129,700.61 86 54.4541 Professional Services 150,000.00 .00 150,000.00 11,513.39 .00 181,802.78 (31,802.78)121 54.4544 Miscellaneous Services 12,000.00 .00 12,000.00 20.02 .00 1,861.81 10,138.19 16 54.4574 Postage Courier Shipping 250.00 .00 250.00 .00 .00 .00 250.00 0 54.4588 Software Maintenance .00 .00 .00 .00 .00 1,020.00 (1,020.00)+++ Run by Veronica Perez on 01/15/2026 09:18:02 AM Page 1 of 3 Budget Performance Report Date Range 01/01/25 - 12/31/25 Include Rollup Account and Rollup to Base Pa g e 1 3 o f 4 3 Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/ Account Account Description Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Fund 931 - Pasco Public Facility District EXPENSE Dept 13 - City Mgr Prog 590 - PPFD Admin 54 54.4635 Insurance Premiums 6,500.00 .00 6,500.00 .00 .00 3,548.79 2,951.21 55 54 - Totals $1,138,750.00 $0.00 $1,138,750.00 $103,011.36 $0.00 $1,022,722.88 $116,027.12 90% Prog 590 - PPFD Admin Totals $1,139,250.00 $0.00 $1,139,250.00 $103,011.36 $0.00 $1,029,160.79 $110,089.21 90% Dept 13 - City Mgr Totals $1,139,250.00 $0.00 $1,139,250.00 $103,011.36 $0.00 $1,029,160.79 $110,089.21 90% Dept 90 - Finance Prog 690 - Capital Culture & Recreation 56 56.6110 Land & Land Improvements .00 .00 .00 .00 .00 529,454.62 (529,454.62)+++ 56.6549 Building & Structure 26,921,240.00 .00 26,921,240.00 .00 .00 14,109,443.01 12,811,796.99 52 56.6562 Const Contract (Primary)7,050,000.00 .00 7,050,000.00 3,120,747.79 .00 6,186,655.29 863,344.71 88 56.6576 Const Other Prof Services 907,000.00 .00 907,000.00 .00 .00 1,134.68 905,865.32 0 56.6578 Const Other Miscellaneous 2,590,400.00 .00 2,590,400.00 .00 .00 306.50 2,590,093.50 0 56.6584 Individual Assets > $5,000 640,000.00 .00 640,000.00 .00 .00 .00 640,000.00 0 56 - Totals $38,108,640.00 $0.00 $38,108,640.00 $3,120,747.79 $0.00 $20,826,994.10 $17,281,645.90 55% Prog 690 - Capital Culture & Recreation Totals $38,108,640.00 $0.00 $38,108,640.00 $3,120,747.79 $0.00 $20,826,994.10 $17,281,645.90 55% Prog 727 - Principal PPFD 57 57.7200 Revenue Bond Principal .00 780,000.00 780,000.00 .00 .00 780,000.00 .00 100 57 - Totals $0.00 $780,000.00 $780,000.00 $0.00 $0.00 $780,000.00 $0.00 100% 59 59.7200 Revenue Bond Principal (Contra).00 .00 .00 .00 .00 (780,000.00)780,000.00 +++ 59 - Totals $0.00 $0.00 $0.00 $0.00 $0.00 ($780,000.00)$780,000.00 +++ Prog 727 - Principal PPFD Totals $0.00 $780,000.00 $780,000.00 $0.00 $0.00 $0.00 $780,000.00 0% Prog 778 - Principal blank 57 57.7200 Revenue Bond Principal 780,000.00 (780,000.00).00 .00 .00 .00 .00 +++ 57 - Totals $780,000.00 ($780,000.00)$0.00 $0.00 $0.00 $0.00 $0.00 +++ Prog 778 - Principal blank Totals $780,000.00 ($780,000.00)$0.00 $0.00 $0.00 $0.00 $0.00 +++ Prog 827 - Interest PPFD 58 58.8310 Interest External Bond (Current)2,217,460.00 .00 2,217,460.00 .00 .00 2,217,459.72 .28 100 58 - Totals $2,217,460.00 $0.00 $2,217,460.00 $0.00 $0.00 $2,217,459.72 $0.28 100% Prog 827 - Interest PPFD Totals $2,217,460.00 $0.00 $2,217,460.00 $0.00 $0.00 $2,217,459.72 $0.28 100% Dept 90 - Finance Totals $41,106,100.00 $0.00 $41,106,100.00 $3,120,747.79 $0.00 $23,044,453.82 $18,061,646.18 56% Run by Veronica Perez on 01/15/2026 09:18:02 AM Page 2 of 3 Budget Performance Report Date Range 01/01/25 - 12/31/25 Include Rollup Account and Rollup to Base Pa g e 1 4 o f 4 3 Adopted Budget Amended Current Month YTD YTD Budget - YTD % Used/ Account Account Description Budget Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Fund 931 - Pasco Public Facility District EXPENSE Dept 98 - Budgeted Fund Balance Prog 000 - None 59 59.9999 Budget Est End Fund Balance (Unassigned)1,424,977.00 9,159,808.00 10,584,785.00 .00 .00 .00 10,584,785.00 0 59 - Totals $1,424,977.00 $9,159,808.00 $10,584,785.00 $0.00 $0.00 $0.00 $10,584,785.00 0% Prog 000 - None Totals $1,424,977.00 $9,159,808.00 $10,584,785.00 $0.00 $0.00 $0.00 $10,584,785.00 0% Dept 98 - Budgeted Fund Balance Totals $1,424,977.00 $9,159,808.00 $10,584,785.00 $0.00 $0.00 $0.00 $10,584,785.00 0% EXPENSE TOTALS $43,670,327.00 $9,159,808.00 $52,830,135.00 $3,223,759.15 $0.00 $24,073,614.61 $28,756,520.39 46% Fund 931 - Pasco Public Facility District Totals REVENUE TOTALS 43,670,327.00 (28,948,831.00)14,721,496.00 571,922.59 .00 6,261,583.71 8,459,912.29 43% EXPENSE TOTALS 43,670,327.00 9,159,808.00 52,830,135.00 3,223,759.15 .00 24,073,614.61 28,756,520.39 46% Fund 931 - Pasco Public Facility District Totals $0.00 ($38,108,639.00)($38,108,639.00)($2,651,836.56)$0.00 ($17,812,030.90)($20,296,608.10) Grand Totals REVENUE TOTALS 43,670,327.00 (28,948,831.00)14,721,496.00 571,922.59 .00 6,261,583.71 8,459,912.29 43% EXPENSE TOTALS 43,670,327.00 9,159,808.00 52,830,135.00 3,223,759.15 .00 24,073,614.61 28,756,520.39 46% Grand Totals $0.00 ($38,108,639.00)($38,108,639.00)($2,651,836.56)$0.00 ($17,812,030.90)($20,296,608.10) Run by Veronica Perez on 01/15/2026 09:18:02 AM Page 3 of 3 Budget Performance Report Date Range 01/01/25 - 12/31/25 Include Rollup Account and Rollup to Base Pa g e 1 5 o f 4 3 Row Labels Sum of Accumulation Amount Accommodation and Food Services 30,197.31$ Administrative and Support and Waste Management and Remediation Services 11,985.41$ Agriculture, Forestry, Fishing and Hunting 770.92$ Arts, Entertainment, and Recreation 2,143.80$ Construction 76,696.88$ Educational Services 1,152.19$ Finance and Insurance 2,102.40$ Health Care and Social Assistance 878.66$ Information 10,404.87$ Management of Companies and Enterprises 4.74$ Manufacturing 6,332.71$ Other Services (except Public Administration)10,548.42$ Professional, Scientific, and Technical Services 6,557.35$ Public Administration 10,173.46$ Real Estate Rental and Leasing 12,471.18$ Retail Trade 198,681.51$ Transportation and Warehousing 9,108.70$ Utilities 266.19$ Wholesale Trade 34,736.77$ Grand Total 425,213.47$ Accumulation 425,213.47$ Pool 420.97$ Admin Fee (4,256.34)$ Distribution 421,378.10$ December 25 Pasco Public Facilities District $30,197.31 $11,985.41 $770.92 $2,143.80 $76,696.88 $1,152.19 $2,102.40 $878.66 $10,404.87 $4.74 $6,332.71 $10,548.42 $6,557.35 $10,173.46 $12,471.18 $198,681.51 $9,108.70 $266.19 $34,736.77 Total Accommodation and Food Services Administrative and Support and Waste Management and Remediation Services Agriculture, Forestry, Fishing and Hunting Arts, Entertainment, and Recreation Construction Educational Services Finance and Insurance Health Care and Social Assistance Category NameSum of Accumulation Amount Page 16 of 43 Month 2023 2024 2025 23/24 24/25 January 331,806.55$ 386,736.10$ 409,220.76$ 17%6% February 323,050.56$ 384,374.65$ 371,718.97$ 19%-3% March 422,196.90$ 466,694.52$ 449,246.62$ 11%-4% April 371,959.21$ 437,300.89$ 421,518.05$ 18%-4% May 391,185.74$ 485,666.73$ 470,226.25$ 24%-3% June 463,237.71$ 470,410.84$ 462,800.94$ 2%-2% July 379,891.11$ 456,168.37$ 424,413.50$ 20%-7% August 387,676.51$ 474,985.82$ 434,983.61$ 23%-8% September 439,074.98$ 457,098.30$ 436,739.47$ 4%-4% October 419,962.52$ 464,699.71$ 421,378.10$ 11%-9% November 412,200.88$ 463,120.77$ -$ 12%- December 443,906.96$ 434,440.65$ -$ -2%- Totals 4,786,149.63$ 5,381,697.35$ 4,302,246.27$ 12%- Comparison Increase/Decrease Sales Tax Percentage Increase/Decrease by Month Pa g e 1 7 o f 4 3 Aquatic Center Budget Tracker 12/31/2025 Contract Amount 51,046,928.00$ Expenses 28,019,070.04$ Unposted Transactions 2,229,297.97$ Remaining Balance 20,798,559.99$ 40.7% 50% 28% 2% 20% Aquatic Center Budget Contract Amount Expenses Unposted Transactions Remaining Balance Pa g e 1 8 o f 4 3 Pa g e 1 9 o f 4 3 Resolution – 2026-01 - 1 RESOLUTION NO. 2026-01 A RESOLUTION OF THE PASCO PUBLIC FACILITIES DISTRICT BOARD, AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A NEW INTERLOCAL AGREEMENT BETWEEN THE CITY OF PASCO FOR ADMINISTRATIVE AND FINANCIAL SERVICES, AND FOR MANAGEMENT AND OPERATIONS OF THE NEW AQUATIC FACILITY. WHEREAS, the Pasco Public Facilities District (“PPFD”) was duly formed pursuant to chapter 35.57 of the Revised Code of Washington on July 15, 2002, by the adoption of City of Pasco (“City”) Ordinance No. 3558, and granted all powers provided by law pursuant to RCW 35.57.010; and WHEREAS, Washington’s Interlocal Cooperation Act, chapter 39.34 RCW, authorizes political subdivisions to jointly exercise their powers, privileges, or authorities with other political subdivisions of this State through the execution of an interlocal cooperative or interagency agreement; and WHEREAS, on February 19, 2013, the PPFD and the City entered into an Interlocal Agreement for Administrative Services; and WHEREAS, on April 26, 2022, the PPFD Ballot Proposition No. 1, imposing two-tenths of one percent (2/10 of 1%) sales and use tax for the purpose of providing funds for the costs associated with the design, construction, and operation of an indoor/outdoor aquatic center including a competition pool, was submitted to the voters of the PPFD through the Franklin County Auditor’s Office, and the same did pass by a majority vote of those voting within the PPFD; and WHEREAS, PPFD Resolution No. 2022-03 provides for the implementation of Voter Authorized Tax. The Board of Directors of the PPFD implemented the voter authorized 2/10 of 1% sales and use tax consistent with RCW 82.14.048 for the purpose of providing funds for the costs associated with the design, construction, and operation of an indoor/outdoor aquatic center including a competition pool; and WHEREAS, with the approval of the Ballot Proposition No. 1 and the receipt of the voter authorized 2/10 of 1% sales and use tax, the PPFD and the City replaced the initial Interlocal Agreement with a new Interlocal Agreement for the purpose of assisting the PPFD with the design and construction of an indoor/outdoor aquatic center as well as continue with the administrative services including City Clerk, City Attorney, Finance, Senior Support Staff, and other City officials, employees or agents as necessary in exchange for payment of services for the PPFD. This was passed by the City Council of the City of Pasco, Washington via Resolution No. 4338 on April 17, 2023; and WHEREAS, the PPFD desires to enter into a new Interlocal Agreement with the City, wherein the City will continue providing administrative and financial services with optional legal services for the PPFD, as well as provide the operational and maintenance service of the new Pasco Aquatic Facility. Page 20 of 43 Resolution – 2026-01 - 2 WHEREAS, the PPFD Board has, after due consideration, determined that it is in the best interest of the PPFD to enter into the new Interlocal Agreement to update and expand the scope of services provided by the City. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE PASCO PUBLIC FACILITIES DISTRICT as follows: Section 1. The Pasco Public Facilities District Board of Directors does hereby approve the terms and conditions of the Interlocal Agreement between the City of Pasco and the Pasco Public Facilities District, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Section 2. The Executive Director of the Pasco Public Facilities District is hereby authorized, empowered, and directed to sign and make minor substantive changes as necessary to execute said Interlocal Agreement on behalf of the Pasco Public Facilities District. Section 3. That this Resolution shall take effect immediately. PASSED by the Pasco Public Facilities District Board of Directors, of Pasco, Washington, this _____ day of ____________, 2026. PASCO PUBLIC FACILITIES DISTRICT __________________________________ Mark Morrissette, Board President ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Caroline Bowdish, Secretary/Treasurer Tyler Whitney, Cable Huston LLP Pasco Public Facilities District Legal Counsel for PPFD Page 21 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 1 INTERLOCAL AGREEMENT between THE CITY OF PASCO, WASHINGTON and THE PASCO PUBLIC FACILITIES DISTRICT for ADMINISTRATIVE, FINANCIAL, LEGAL SERVICES, AND OPERATIONS OF AQUATICS CENTER This Interlocal Agreement (“Agreement”) is made and entered into this ____ day of ______________, 2026, by and between the City of Pasco, Washington, a municipal corporation of the state of Washington (the “City”), and the Pasco Public Facilities District, a municipal corporation of the state of Washington (the “District,” and, together with the City, the “Parties”), and the Parties agree to the following terms: WHEREAS, the District was created pursuant to Chapter 35.57 of the Revised Code of Washington for the purposes of acquiring, constructing, operating and financing one or more regional centers through cooperative and joint ventures with one or more qualifying public facilities district; and WHEREAS, due to legislative changes in 2019 to RCW 35.57.020, the District became eligible to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate one or more recreational facilities other than a ski area upon obtaining voter approval pursuant to RCW 82.14.048(4)(a). WHEREAS, in April of 2022, voters approved a 2/10th of one percent sales tax increase to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate an aquatics facility (the “Aquatics Center”) pursuant to RCW 82.14.048(4)(a). WHEREAS, the District possesses, by law, all of the usual powers of a corporation for public purposes, as well as all other powers that may now or hereafter be specifically conferred by statute, including but not limited to the authority to hire employees, staff, and services, as well as to enter into contracts and agreements; and WHEREAS, the District desires to contract with the City for the purpose of securing those services necessary for fulfillment of the District's functions. NOW THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows: ARTICLE I PURPOSE The purpose of this Agreement is to create a cooperative basis upon which the District may utilize the personnel and obtain the services of the City needed to fulfill the District’s statutory Page 22 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 2 functions and to provide the basis of compensation to the City for such services for the management and operation of the District’s the voter-approved Aquatics Center. ARTICLE II SERVICES PROVIDED BY THE CITY Section 2.1. General. The management and operational and administrative services required by the District under this Agreement for the Aquatics Center will be provided by City employees in the Parks, Recreation and Facilities Division of the City’s Administrative and Community Services Department. The City Manager, or their designee, shall serve as the primary liaison between the City and the District. Other City officials, employees, or agents may provide specific or specialized services as may be necessary. At all times under this Agreement, the District will remain the owner of the Aquatics Center. Section 2.2. Administrative, Financial and Legal Services. The City shall provide, at the request of the District, the following services: (a) City Clerk. The City Clerk shall serve as the ex officio secretary of the Board of Directors (the “Board”) of the District for purpose of receipt of claims, providing notices of public meetings of the Board required by the Washington Open Public Meetings Act (RCW 42.30), repository of official records of the District, keeping and maintaining minutes of Board meetings (including recorded records), and providing for the public inspection and copying of such records in accordance with the policies and Municipal Code of the City and the applicable requirements of the Washington Public Records Act (RCW 42.56). The City Clerk or their designee also shall provide other support services to the District, including providing meeting space for Board meetings, agenda coordination, advertisement, general correspondence with Board members, and public records management, maintenance and storage. (b) City Attorney. The City Attorney may provide legal services for the District, but the District also may contract with outside counsel for legal services. (c) Senior City Staff Support. The City Manager, and their designee(s) shall provide support services to the District in the following general areas: i. General coordination between members of the District Board and staff with the City Council and City staff, ii. Staff liaison support to the District Executive Director, iii. Staff support for all City-led efforts outlined herein, iv. Coordination of real estate transactions, v. Coordination of applicable interlocal agreements, and vi. Development of policy (d) City Finance Director. The City Finance Director, or their designee, shall serve as the financial officer for the District, whose duties will include preparing quarterly and annual financial Page 23 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 3 reports, including claims, revenue and expense reports, and performing all accounts payable and receivable functions. Section 2.3. Aquatics Center Operational Services. The City will be responsible for overall management and operation of the Aquatics Center, while the Board will provide general oversight and ensure the alignment of the Aquatics Center's operations with the voter-approved goals and funding of the Aquatics Center. (a) General Operations. The City will provide regular reporting to the District to ensure effective management and operation of the Aquatics Center. Reports will be made available on a monthly, quarterly, and annual basis, as appropriate, including: i Financial Reports: Detailed expense reporting, revenue reports, Profit and Loss (P&L) statements, and budget vs. actual comparisons. ii. Attendance and Usage Metrics: Daily attendance, capacity utilization, membership enrollment, program participation, and special events attendance. iii. Customer Feedback and Satisfaction: Customer satisfaction surveys and complaints log. iv. Maintenance and Facility Management Reports: Maintenance logs, equipment replacement schedules, facility condition assessments, work order completion rates, and energy efficiency reporting. v. Safety and Risk Management Reports: Incident and accident reports, emergency drills, and compliance reports. vi. Programming Success Metrics: Program effectiveness, new program development, and revenue vs. cost analysis for programs. vii. Staffing Reports: Staffing levels, training and certifications, and staff performance evaluations. viii. Marketing and Outreach Reports: Effectiveness of marketing campaigns and community engagement. ix. Concession and Retail Reports: Concession stand revenue, cost of goods sold (COGS), and retail sales reports. x. Sustainability and Environmental Impact Reports: Water and energy usage reports, and waste reduction metrics. xi. Sponsorship and Community Benefit Reporting: Sponsorship success and community impact reporting. xii. Benchmarking and Competitive Analysis: Comparative analysis of performance metrics against regional and national aquatics centers. (b) Facilities Maintenance Policy. In order to assist and provide clear direction to the City in its provision of maintenance services with respect to the property and facilities comprising the Aquatics Center, the City and the District shall jointly develop a specific facilities and equipment maintenance policy (“maintenance policy”) for the Aquatics Center, subject to final approval by the District’s Board. The maintenance policy shall include specific maintenance, repair and safety procedures and standards for the facilities and equipment comprising the Aquatics Center. Those procedures and standards shall be comparable to Page 24 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 4 procedures and standards that are customary for other aquatics centers of similar size and character to the District’s Aquatics Center. ARTICLE III COMPENSATION FOR CITY SERVICES Section 3.1. Annual Operating Budgets. On or before November 1 of each year, the City shall provide the District with a proposed operating budget for the Aquatics Center for the succeeding calendar year. The District shall adopt a final budget for the Aquatics Center by December 31 of each year. The Parties will cooperatively develop an initial operating budget for the partial calendar year of 2026, which shall be presented to the District’s Board for revision and adoption by May 1, 2026. Each budget shall be based on the types and extent of aquatics programs and activities to be offered at the Aquatics Center and the estimated costs and expenses of the City’s services needed to carry out those programs and activities. Each budget shall include a general list of the various services to be provided by the City. The specific levels of programming (e.g., hours of operation, adult versus free swim schedule, classes, swim meets, etc.) shall be determined at least on an annual basis by a collaborative process between the District and the City and formalized in the budget adopted pursuant to this Agreement. Section 3.2. City Compensation Based on Cost of Service. The District shall compensate the City on a cost-of-service basis for “direct billable costs” of services provided and expenses incurred by the City that are solely attributable to the operation of the Aquatics Center. These “district billable costs” are listed and described below. The District also shall compensate the City on a cost-of-service basis for a proportionate share of “indirect billable costs” of services provided and expenses incurred by the City that benefit both the Aquatics Center and the City’s departments and operations unrelated to the Aquatics Center. These “indirect billable costs” also are listed and described below. Section 3.3. Direct Billable Costs. Direct billable costs shall be those expenses incurred by the City that are solely attributable to the operation of the Aquatics Center. The following expenses shall be treated as direct billable costs and will be directly billed to the District for the operation of the Aquatics Center: All Staffing: Lifeguards, instructors, facility manager, supervisors, customer service staff, and cashier staff, technical, grounds and maintenance, human resources, recreation, finance, and communications, or other required city staff. Aquatics Center Operating Schedule: Costs related to maintaining the Aquatics Center’s annual, seasonal, and daily operating hours. Aquatics Center Programming: Swim lessons, fitness programs, lap swim, open swim, private bookings, and special events. Technology: Software, network infrastructure, computers, printers, point-of-sale systems, access control, security cameras, fire and security monitoring. Page 25 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 5 Marketing and Advertising: Website maintenance, social media management, print ads, radio/TV spots, promotions, branding, and community outreach. Sponsorship and Promotions: Development and management of sponsorship deals and promotional events. Operational Plans, Policies, and Rules: Creation, maintenance, and enforcement of facility operational policies. Concessions Management: Managing and operating concession stands within the facility. Maintenance and Repair: Routine and emergency repairs for facility equipment and infrastructure. Janitorial and Cleaning Services: Costs related to cleaning services to maintain the facility. Landscape Services: Exterior maintenance, including landscaping, gardening, and outdoor facility upkeep. Chemicals and Supplies: Pool chemicals, cleaning supplies, and other operational materials. Operating Permits and Inspections: Costs for obtaining required permits and passing routine inspections. Utilities: Electricity, water, heating, cooling, and other necessary utilities. Equipment: Costs for the purchase and maintenance of necessary equipment for operations. Insurance: Coverage for the facility and its operations. Safety and Risk Management Costs: Regular safety audits, inspections, first aid supplies, AEDs, safety drills, and incident response training for staff. Facility-Specific Licensing Fees: Licenses required for specific activities (e.g., swim competitions), and fees for regulatory compliance. Guest Services & Amenities: Locker room supplies (towels, toiletries) and additional guest services such as towel and locker rentals. Water Quality Management: Water testing, filtration systems, and water treatment. Page 26 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 6 Aquatics Facility Furnishings & Fixtures: Poolside furniture, lane dividers, safety ropes, signage, and other specialty items for programming. Professional Services: Contracted services such as professional divers for inspections or legal services related to operations. Capital Reserve Fund Contributions: Funds set aside for future capital improvements or significant repairs. Risk and Liability Insurance for Events: Additional insurance coverage for special events or competitions. Security and Access Control: Installation and maintenance of security systems such as remote surveillance or access control. Sustainability Initiatives: Costs for energy-saving measures such as solar panels or water conservation systems. On a monthly basis the City shall charge to the District and the District shall pay to the City for direct billable costs for the provisions of the foregoing services. City Attorney services (if utilized by the District) rendered for the District shall be charged in addition to the above monthly charge and billed separately. Section 3.4. Indirect Billable Costs. Indirect billable costs shall be those expenses incurred by the City for the operation of the Aquatics Center that are not treated as direct billable costs under Section 3.3, and which are shared proportionately between the Aquatics Center and other City operations consistent with the City’s then-effective cost allocation policy and model. The following expenses shall be treated as indirect billable costs to be proportionately shared between the District and the City for services or operational costs incurred for both the Aquatics Center and other City operations: General Overhead Allocation: Share of city-wide administrative costs such as City Manager’s oversight, HR management, and public records compliance not otherwise related to services provided in Article II of this Agreement. IT Services Fee: Costs for centralized IT infrastructure, maintenance, software licenses, cybersecurity, and technical support. Fleet Management Fees: Shared costs for vehicle maintenance, fuel, and repairs for vehicles used by the Aquatics Center. Purchasing and Procurement Services: Costs for acquiring goods and services for the Aquatics Center, and contract management. Page 27 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 7 Risk Management and Liability Claims Administration: Shared costs for workers' compensation, liability insurance, and risk mitigation. Finance Department Services: Costs for centralized accounting, payroll processing, budgeting, and audit compliance. Permit and Licensing Fees: Internal fees for special permits and licenses related to the facility's operation and events. Communications and Public Relations Fees: Costs for public relations and communications efforts related to facility promotion and media relations not covered by direct billable costs. Emergency Preparedness and Disaster Recovery: Shared costs for city-wide emergency management services, including disaster recovery planning. Strategic Planning and Economic Development: Proportionate share of planning and economic development costs that benefit the Aquatics Center. Records Management: Costs for document storage, archiving, and responding to public records requests related to facility operations. On a monthly basis the City shall charge to the District and the District shall pay to the City for indirect billable costs for the provisions of the foregoing services. Section 3.5. Semi-Annual True-Up of Operating Expenses. The City and the District recognize that the actual costs incurred by the City to operate and manage the Aquatics Center may be more than or less than the costs anticipated in the annual operating budget of the Aquatics Center jointly developed by City and the District. In July and January of each year, adjustments shall be made to the amount of compensation payable by the District to the City for management, operation and maintenance services provided by the City in the previous six months. These adjustments shall reconcile or “true-up” compensation with actual incurred costs of the City for those services in that prior year. If the amount paid by the District to the City varies from the amount found to have been due for the prior calendar year, the District will adjust its payments to the City in the current calendar year by adding or crediting the overpayment or underpayment amount to remaining District payments for the current calendar year, by disbursing or billing the overpaid or underpaid amount as a lump sum or invoice, or by some other payment adjustment method agreed to by the City and the District. A reconciliation process involving City Staff and the Budget and Finance Committee of the District will be utilized to review all actual costs are accounted for and allocated appropriately. Section 3.6. Joint Development of an Aquatics Center Capital Improvement Plan. The City and the District acknowledge that future additions and improvements to the Aquatics Center may change (increase or decrease) the character and amounts of operating and maintenance expenses required to operate and maintain the Aquatics Center. Therefore, the City and the District shall Page 28 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 8 jointly develop a capital improvement plan (“CIP”) for the Aquatics Center, subject to final approval by the District’s Board. The CIP shall include: • A listing of potential future capital additions and improvements to the Aquatics Center that would enhance the District’s ability to carry out aquatics programs and activities for the community; • Anticipated sources of District funding for those capital improvements, including proceeds of additional District parity bonds to the extent permitted to be issued under District Resolution No. 2024-09; District sales tax revenue and operating revenue; and grants, gifts and other available District sources; and • Projections of the additional management and operational and administrative expenses reasonably expected to be associated with the new additions and improvements to the Aquatics Center that will be incurred by the City, together with the sources of District funding reasonably expected to be available to meet those additional expenses. Section 3.7. Joint Development of Aquatics Center Renewal and Replacement Reserve Policy. The City and the District also acknowledge that the establishment and maintenance of healthy renewal and replacement reserves for the property and facilities comprising the Aquatics Center will assist both Parties in managing future operating and maintenance expenses required to operate and maintain the Aquatics Center. Therefore, the City and the District also shall jointly develop a renewal and replacement (“R&R”) reserve policy for the Aquatics Center, subject to final approval by the District’s Board. The R&R reserve policy shall include, among other things: • An inventory of the various types of existing facilities and equipment required for the operation of the Aquatics Center and schedules of the respective estimated useful lives of those facilities and items of equipment; and • A financial plan under which the District will accumulate District sales tax revenue and operating revenue that is available after the District’s required debt service payments and required payments to the City under the Agreement to establish and maintain an R&R reserve in amounts sufficient to provide for the repair and/or replacement of those facilities and items of equipment at the end of their respective useful lives. ARTICLE IV INTERLOCAL COOPERATION ACT PROVISIONS The District shall be solely responsible for all costs, materials, supplies and services necessary for its performance under the terms of this Agreement. All property and materials secured by the District in the performance of this Agreement shall remain the sole property of the District. All funding incident to the fulfillment of this Agreement, shall be borne by the party necessary for the fulfillment of their responsibilities under the terms of this Agreement. No special budgets or funds are anticipated, nor shall be created incident to this Agreement. It is not the intention that a separate legal entity be established to conduct the cooperative undertakings, nor is the acquisition, holding, or disposition of any real or personal property anticipated under the specific terms of this Agreement. The District shall adopt and follow City policies and procedures Page 29 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 9 when deemed efficient and in compliance with applicable regulations. The City Manager and the District’s Executive Director shall be designated as Co-Administrators of this Agreement. ARTICLE V INITIAL TERM, RENEWAL AND TERMINATION OF AGREEMENT The initial term of this Agreement shall commence on the date this Agreement is mutually executed and delivered, and shall continue until December 31, 2028. The term of this Agreement shall be automatically renewed for one-year periods thereafter unless either the City or the District provides, at least twelve (12) months prior to the end of that current term of this Agreement, written notice to the other Party of its intention not to renew the Agreement at the end of its current original or renewal term. ARTICLE VI INSURANCE AND LIABILITY Section 6.1. Provisions for Insurance. The District and the City each shall obtain and maintain insurance, or risk pool self-insurance insurance, for their respective acts and omissions under this Agreement, and as otherwise customarily provided in connection with the governmental ownership and operation of aquatic facilities comparable to the District’s Aquatics Center. Among other types of insurance coverages that may be appropriate for governmentally-owned aquatics centers comparable in size and character to the District’s Aquatics Center, the following insurance coverages shall be obtained and maintained: • The District shall insure, at replacement cost value, the buildings, facilities and equipment comprising the Aquatics Center under appropriate policies of “all-risk” casualty insurance; • The District and the City each shall maintain General Liability insurance, or risk pool self-insurance, for Bodily Injury, Property Damage Liability, Public Officials Errors and Omissions and Automobile Liability in specified minimum amounts customarily provided in connection with the ownership and operation of aquatic facilities comparable to the District’s Aquatics Center. • The City shall maintain Workers Compensation insurance as required by state statute and federal law if applicable. Section 6.2. Indemnification Provisions. The District and the City shall defend, indemnify and hold the other Party, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the indemnifying Party in performance of this Agreement, except for injuries and damages caused by the sole negligence of the indemnified Party. These indemnification provisions shall be reviewed and revised as necessary by counsel for the District and the City to ensure compliance with applicable provisions of state law, as well as by the Washington Cities Insurance Authority to the extent the City obtains and maintains risk pool self- insurance from that Authority for the purposes of the Agreement. Page 30 of 43 2026 ILA – City of Pasco/District Administrative, Financial, Legal Services, and Operations of Aquatics Center- 10 ARTICLE VII ENTIRE AGREEMENT This Agreement contains all the terms and conditions agreed upon by the Parties. No other understandings, verbal or otherwise, in regard to the subject matter of this Agreement, shall be deemed to exist. Any modifications to this Agreement shall be in writing and signed by both Parties to be effective. ARTICLE VIII APPLICABLE LAW This Agreement is governed, construed and enforced in accordance with the substantive laws of the State of Washington. Should any dispute arise concerning the enforcement, breach, or interpretation of this Agreement, venue shall be placed in Franklin County, Washington, and the prevailing party shall be entitled to its reasonable attorney fees and costs as additional judgment. ARTICLE IX AUTHORITY FOR EXECUTION Each of the Parties warrants and represents that its representatives, whose signatures are below, possess all required authority to sign this Agreement and such powers have not, as of the date of this Agreement, been revoked or revised. IN WITNESS WHEREOF, the Parties have executed this Agreement by the duly authorized officers on the day and year first written above. PASCO PUBLIC FACILITIES DISTRICT CITY OF PASCO By: _______________________________ By: ______________________________ Mark Morissette, Chair Harold L. Stewart, II, City Manager Attested to by: ____________________________ Debra Barham, MMC, City Clerk Page 31 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 1 of 8 Construction Manager: Wenaha Group Design-Builder: Bouten/NAC UPDATE SUMMARY Work on the natatorium pool and indoor spaces are progressing. Storefront windows and glazing have started to be installed. Drywall and insulation work continues throughout the main building. Masonry walls at the universal changing rooms are nearly complete. Skylights are being installed. Pool equipment is beginning to arrive on site and some of the first big pumps are set in the outdoor pool room. The outdoor pool has been filled with water to test for leaks. The indoor pool shotcrete has been completed, and preparations have begun for water leakage testing following the outdoor pool. Final site grading for the parking lots and driveways is beginning soon. SCHEDULE Key Milestones Start Completion % Complete Comments Indoor Pool 9/15/2025 5/08/2026 60% Exterior pool 6/25/2025 4/9/2025 65% Area B&C Roof 10/1/2025 1/9/2025 95% Storefront B&C 12/17/2025 1/30/2026 75% CURRENT ACTIVITIES • Site grading • Indoor framing • Indoor CMU placement • Indoor electrical installation • Concessions building mechanical work • Pool equipment installation • Indoor pool form stripping ACTIVITIES SCHEDULED FOR NEXT MONTH • Building dry in • Outdoor pool leak test • Window frames and glazing installation • Interior finish work • Finish roofing • FFE meetings Page 32 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 2 of 8 HIGHLIGHTS • The natatorium pool and hot tub floors are complete and stripped of forms • Storefront framing and glazing • Pool equipment has begun to arrive SCHEDULE COMMENTARY • The schedule is tracking with original milestones and has been progressing smoothly. No major delays to critical path activities have been incurred. However, as the schedule approaches the end of the project schedule will become more critical as making up delays will get harder to do. CHALLENGES AND SOLUTIONS • The biggest challenge for the project at this time is the ability to keep the schedule on track so that the project can maintain the opening date. Bouten had increased their short term schedule reporting to ensure all project personnel are aware of critical dates and are able to help look for bottle necks. • Matt (Executive Director) has been meeting with Ben Franklin Transit (BFT) regarding provisions for bus service. The routing of buses will remain a challenge until the full road system for the Broadmoor development has been constructed. Solutions are being looked at, and ROM pricing is being worked on. • Wenaha, PPFD and City of Pasco are engaging in regular meetings to finalize procurement of furniture in order to ensure items will arrive at the proper time. Budget Status Established GMP Changes to Date Cost to Date % Complete $40,443,322 $295,532 $22,251,765 55% Note: At the time of writing this report the contractor invoice and schedule update was not available. As a result, budget numbers remain the same as last report and will be updated on next report. OWNER CONTINGENCY STATUS* Budgeted Contingency Approved Contingency Usage Items Recommended for Approval Estimated Total Contingency Exposure Remaining Contingency % $3,590,400 $2,159,143 $0 $2,573,630 2.56% Page 33 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 3 of 8 *Owner Contingency is held in the budget outside of the construction contract and used at the discretion of the PPFD COST OF WORK CONTINGENCY STATUS* Contracted Contingency Authorized Contingency Usage Pending Contingency Usage Remaining Contingency Percentage of Contingency Used $1,242,911 $454,831 $439,690 $348,390 71% *Cost of Work Contingency is held inside the construction contract and available to the contractor. Expenditures out of this contingency do NOT increase the contract amount with PPFD. PROJECT PHOTO GALLERY Storefront at entry Page 34 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 4 of 8 Pool equipment indoor pool Interior storefront Page 35 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 5 of 8 Hot tub forming UCR’s Page 36 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 6 of 8 Outdoor pool form stripped Outdoor pool forms stripped Page 37 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 7 of 8 Interior Pool UCR Walls Page 38 of 43 Pasco Aquatics Facility Monthly Project Update December 2025 Page 8 of 8 Outdoor pool equipment Upper drywall Page 39 of 43 A B C D E = B - D Sub-Area Description Original Budget Revised Budget Cost To Date Forecast Total Revised Budget vs. Forecast Bond & Legal Bond Counsel 70,000$ -$ -$ -$ Bond Sales 310,000$ -$ -$ -$ Municipal Advisor 70,000$ Insurance - Builder's Risk - In PDB -$ -$ -$ 6576.1 Outside Counsel - PDB 20,000$ 20,000$ 26,355$ 20,000$ -$ 6576.2 Other Legal Costs 45,000$ 45,000$ 30,460$ 45,000$ -$ Subtotal 515,000$ 65,000$ 56,815$ 65,000$ -$ Administration & Approvals 6576.3 Miscellaneous -$ -$ -$ 6576.4 Project Staff Costs - PPFD Staff 312,000$ 312,000$ -$ 237,000$ 75,000$ 6576.5 City of Pasco Staff - ILA 450,000$ 450,000$ -$ 450,000$ -$ Archaeological cosultant - In PDB -$ -$ -$ Testing & Inspection / Special Inspections - In PDB -$ -$ -$ Plan Check, Building Permits - In PDB -$ -$ -$ Environmental/SEPA - In PDB -$ -$ -$ 6576.6 Other AHJ Fees / System Development Charges -$ -$ -$ 6562.1 Electrical / Utility Fees 100,000$ 100,000$ 174,303$ 175,000$ (75,000)$ 6576.7 State Commerce Department Review 30,000$ 50,000$ 30,000$ 50,000$ -$ 6576.8 Shrub Steppe Mitigation - In PDB -$ -$ -$ 6576.9 Other Admin Costs 30,000$ 30,000$ 10,000$ 30,000$ -$ Subtotal 922,000$ 942,000$ 214,303$ 942,000$ -$ Off-Site Related Costs Temporary Offices - In PDB -$ -$ -$ Offsite road and utility improvements 2,000,000$ -$ -$ -$ -$ 6540.1 Property Acquisition 3,600,000$ 5,139,528$ 5,137,765$ 5,139,528$ -$ Other Off-site Costs -$ -$ -$ Subtotal 5,600,000$ 5,139,528$ 5,137,765$ 5,139,528$ -$ Professional Fees 6562.2 Project Management 850,000$ 850,000$ 626,273$ 850,000$ -$ Architectural & Engineering - In PDB -$ -$ -$ Survey - In PDB -$ -$ -$ Geotechnical Engineer - In PDB 30,000$ 10,000$ -$ 10,000$ -$ Hazardous Materials Consultants -$ -$ -$ Building Envelope Consultant - In PDB -$ -$ -$ Commissioning - In PDB -$ -$ -$ PDB Validation Costs - In PDB -$ -$ -$ Independent Estimating 50,000$ 50,000$ -$ 50,000$ -$ Subtotal 930,000$ 910,000$ 626,273$ 910,000$ -$ Building Construction - PDB Contract 6549.1 Design-Builder 30,250,000$ 32,720,000$ 24,232,552$ 32,720,000$ -$ 6562.3 Archeological Consultant 50,000$ 50,000$ -$ 50,000$ -$ 6562.4 Testing and Special Inspections 150,000$ 150,000$ -$ 150,000$ -$ 6562.5 Plan Check, Building Permits 300,000$ 300,000$ -$ 300,000$ -$ 6562.6 Environmental/SEPA 10,000$ 10,000$ -$ 10,000$ -$ Additional Funds for Option 2 3,430,000$ -$ 3,430,000$ -$ 800,000$ -$ 800,000$ -$ Added Betterments 2,300,000$ 2,300,000$ Sale Tax (included above)-$ -$ -$ Subtotal 30,760,000$ 39,760,000$ 24,232,552$ 39,760,000$ -$ Furnishings & Equipment 6584.1 FF&E 600,000$ 600,000$ -$ 600,000$ -$ 6584.2 Network Equipment -$ -$ -$ 6584.3 Telecommunications 20,000$ 20,000$ -$ 20,000$ -$ 6584.4 Moving Expenses -$ -$ -$ 6584.5 FF&E Consultant 20,000$ 20,000$ -$ 20,000$ -$ 6585.6 Other FF&E Costs -$ -$ -$ -$ -$ Subtotal 640,000$ 640,000$ -$ 640,000$ -$ Contingency 6578.1 Owner's Contingency 2,580,000$ 3,590,400$ 2,575,000$ 3,590,400$ -$ Subtotal 2,580,000$ 3,590,400$ 3,590,400$ -$ Under / (Over) TOTAL 41,947,000$ 51,046,928$ 30,267,708$ 51,046,928$ -$ Income & Project Under/Over 51,046,928$ Bond Proceeds 50,046,928$ 51,046,928$ Interest Income -$ -$ PPFD Cash Reserves 1,000,000$ -$ Total Income 51,046,928$ 30,267,708$ PPFD - Aquatics Facility MASTER BUDGET - BIG SHEET Total Expenses to Date Total Project cost Total Income Under / (Over) Page 1Page 40 of 43 Contingency Summary and Forecast Grand Total of Approved Items $2,159,143 Total of Items Recommended for Approval $0 Projected Total of Open Items Not Yet Submitted $260,000 Open Beginning Contingency Per Approved Budget $3,590,400 Recommend Estimated To-Date Contingency Usage $2,573,630 Approved Estimated Remaining Contingency $1,016,770 Closed Remaining Contingency as % Construction Budget 2.56% CE Betterment # Title ROM Amount Status Docs Notes 2 Next Gen Chlorinator 0 Approved In GMP 12 Added 10% Natatorium 0 Approved In GMP 13 Added Colorful lighting (interior and exterior)0 Approved In GMP 18 Added skylights in the Natatorium 0 Approved In GMP 22 Added Soffit Cladding 0 Approved In GMP 28 Outdoor Slide Complex Make Ready 310,000 Approved Added to PDB Budget 30 Rain Cloud (Sun Shower) W/Sound Coordination 0 Approved In GMP 38 Transluent Band 30,000 Approved Added to PDB Budget 39A Monument Make Ready 10,000 Approved Added to PDB Budget 43 FPUD Vaults and Conduits 333,323 Approved Added to PDB Budget FPUD Fees and Connection Charges 260,000 Open Final costs after install by FPUD 32A Access Control - Added locations rough in only 52,628 Approved Bouten CO#1 32B Access Control - Priority 1 added locations 80,852 Approved Bouten CO#1 32C Access Control - Priority 2 added locations 36,440 Approved Bouten CO#1 37A Cameras - Added locations rough in only 26,880 Approved Bouten CO#1 City fees and water rights overages Closed Costs are being covered within budget and Bouten contingency 6A Ninja Course Make-Ready 74,579 Approved Bouten CO#2 Unsuitable soils 3,887 Approved CO #3 Concessions Infrastructure Upgrades 126,712 Approved Vault and Conduit Coverage 19,997 Open Pool pumps grounding 62,486 Approved 6B Add Full Ninja Course 675,255 Approved CO #3 33 Party Rooms RSD 9,503 Approved 34 Slide Camera and Monitor 39,539 Approved 3A Enhanced Sound System (indoor)146,869 Approved 3B Enhanced Sound System (outdoor)95,670 Approved 42 Cabana receptacles Make ready 22,347 Approved 42.1 Cabana receptacleswire and fixtures 22,173 Approved Totals $260,000 $2,179,140 Pasco Aquatic Center Contingency Tracking Worksheet 1/15/2026 1:46 PM 1 Pa g e 4 1 o f 4 3 TO: Pasco Public Facilities District Board Members DATE: January 16, 2026 SUBJECT: APPROVED CONTINGENCIES Board Members, As you’re aware the Pasco Public Facilities District chose “Design-Build” as a methodology for construction the new aquatics facility, and in with this method there is a “Guaranteed Maximum Price” that also includes a contractor and owner contingency for unanticipated expenses or complications. Contingency continues to be well-managed by our Owner’s Representatives, Heath Gardener and Jake Hartwig of Wenaha Group. Additionally, they proactively involve me as Executive Director—including the principles adopted in our helpful Stakeholder Register. This list also represents what is likely a high-water mark for volume and dollar amounts of contingency in the project. There was a discussion at our 1/14 Owner and Constructor meeting that the number and scale of contingencies likely will reduce as we approach project completion 5 months from now. Project Contingency (No Cost Change To Owner) CUA 35 - Additional blocking for lower roof parapet and soƯit blocking. Missed in scope. - $14K. CUA 43 - Furred walls at the concessions building to cover water and electrical. Concession changes after construction started and required modification. - $18K CUA 44 - Ductwork Tnemec Paint at the MEP Room. The paint needed for water resistance inside and outside the ducts. Missed drawing coordination. - $6K CUA 48 - Indoor pool deck increased thickness for 4" to 6" done after RFI 119. Soil conditions discovered while digging natatorium. - $19K CUA 49 - Steel angles for Grating and Precast fascia required by RFI 111 & 118 . Missed in scope. - $10K CUA 53 - Pool temp weather and heat protection. This is needed to allow the work on the outdoor pools to continue with colder temperature. - $70K CUA 54 - Exposed steel framing paint color type. Additional masking and unmasking needed due to color changes. - $4K CUA 55 - Added flashing at skylights per RFI 120. Preventitive to withstand weather better in future. - $13K Page 42 of 43 CUA 56 - Furnish and install added air vent at west soƯit wall due to coordination with shop drawings. - $5K CUA 58 - Overhead sectional door material change to stainless steel. Reduce future potential rusting. - $10K CUA60 - CMU openings and pilasters for ductwork as required per RFI 104 . Wall penetrations missed in design. - $2K Items Reviewed and Reviewed or Endorsed by D&C Committee CUA65 -Pools’ Barrier Rail Pickets. Original were rope, upgraded to stainless. $11K PCO 13 – Additional coverage for the electrical vault and conduit coverage. $20K. PCO 28 – Cabana receptacle completion. $22K. Design Build Changes DBC 4 - Concrete supply volume. Additional needed materials for Sirewall. - $2K Buyout usage BCO - Concrete pumping due to native soils. Internal buyout savings transfer to self- perform concrete to cover additional pumping costs due to native soils. - $110K Change Order (Owner Cost $0K) None this period. Matt Watkins Executive Director Cc: Wenaha Group Page 43 of 43