Loading...
HomeMy WebLinkAbout2026.01.20 Council Agenda Packet AGENDA City Council Regular Meeting 7:00 PM - Tuesday, January 20, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco-wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this meeting. To listen to the meeting via phone, call 1-332-249-0718 and use access code 200 882 257#. City Council meetings are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. 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. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Councilmembers, the item may be removed from the Consent Agenda to the Page 1 of 325 Regular Agenda and considered separately. 6 - 13 (a) Approval of Meeting Minutes for January 5th To approve the minutes of the Pasco City Council Regular Meeting held on January 5, 2026. 14 - 15 (b) Bills and Communications - Approving Claims in the Total Amount of $6,229,294.35 To approve claims in the total amount of $6,229,294.35 ($2,316,475.25 in Check Nos. 275767 - 275970; $2,587,391.63 in Electronic Transfer Nos. 851773 - 851846, 851868 - 851959, 851977 - 852036, 852040 - 852047, 852052 - 852053; $17,325.97 in Check Nos. 55123 - 55133; $1,308,101.50 in Electronic Transfer Nos. 30236004 - 30236705). 16 - 26 (c) Resolution No. 4693 - Professional Services Agreement Amendment No. 3 with RH2 Engineering, Inc. for Design Services for the Process Water Reuse Facility Phase 4 Irrigation System Farm Upgrades Project (5 minute staff presentation) To approve Resolution No. 4693, authorizing the City Manager to execute Amendment No. 3 for the professional services agreement with RH2 Engineering, Inc. for the design of the Process Water Reused Facility (PWRF) Improvement Phase 4: Irrigation System Farm Upgrades Project. 27 - 97 (d) Resolution Nos. 4694, 4695, 4696, 4697 & 4698 - Helena 1 and 2 Development Reimbursement Agreements with Broetje Orchard LLC and Jubilee Foundation (5 minute staff presentation) To approve Resolution No. 4694, authorizing a Utility Developer Reimbursement (Latecomer) Agreement with Broetje Orchards, LLC, for the construction of sewer utility improvements for Helena 1, a residential subdivision. To approve Resolution No. 4695, authorizing a Street System Developer Reimbursement (Latecomer) Agreement with Broetje Orchards, LLC, for the construction of street improvements for Helena 1, a residential subdivision. To approve Resolution No. 4696, authorizing a Utility Developer Reimbursement (Latecomer) Agreement with Broetje Orchards, LLC, for the construction of water utility improvements for Helena 1, a residential subdivision. To approve Resolution No. 4697, authorizing a Street System Developer Reimbursement (Latecomer) Agreement with Jubilee Foundation for the construction of street improvements for Helena 2, Page 2 of 325 a residential subdivision. To approve Resolution No. 4698, authorizing a Utility Developer Reimbursement (Latecomer) Agreement with Jubilee Foundation for the construction of water utility improvements for Helena 2, a residential subdivision. 98 - 137 (e) Resolution No. 4699 – Project Acceptance for the Citywide Genetec Enterprise Access Control System (3 minute staff presenation) To approve Resolution No. 4699, accepting work performed by Interwest Technologies Systems Inc., under contract for the Citywide Genetec Enterprise Access Control System project. 138 - 150 (f) *Resolution No. 4700 - Service Agreement between Hanford Mission Integration Solutions (HIMS) and the City of Pasco for use of the Emergency Vehicle Operations Course (2 minutes staff presentation) To approve Resolution No. 4700, authorizing the City Manager to execute a Service Agreement between Hanford Mission Integration Solutions and the City of Pasco for use of the Emergency Vehicle Operations Course (EVOC). (RC) MOTION: I move to approve the Consent Agenda as read. 5. PROCLAMATIONS AND ACKNOWLEDGEMENTS 151 - 152 (a) City Clerk Debra Barham Appreciation Day Proclamation (5 minutes) Mayor Grimm will read the proclamation for "City Clerk Debra Barham Appreciation Day" scheduled for January 23, 2026 and present the proclamation to City Clerk Barham. 6. PUBLIC COMMENTS - The public may address Council on any items unless it relates to a scheduled Public Hearing. This item is provided to allow the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. Lastly, when called upon, please state your name and city or county residency into the microphone before providing your comments. Page 3 of 325 7. REPORTS FROM COMMITTEES AND/OR OFFICERS (a) Verbal Reports from Councilmembers 8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 153 - 204 (a) Q Ordinance No. 4812 - Rocky Hills Management LP "Wilson Estates" Rezone from R-T to R-1 (Z2025-009) (5 minute staff presentation) MOTION: I move to adopt Ordinance No. 4812, amending the zoning classification of certain real property located north of Burns Road, west of Broadmoor Boulevard, south of future Dent Road, and east of future Dent/Fraser Road in Pasco, Franklin County, Washington, from R-T (Residential Transition) to R-1 (Low Density Residential) and, further, authorize publication by summary only. 205 - 208 (b) Resolution No. 4701 - 2026-2027 City Council Representation on Local & Regional Boards and Committees (3 minute staff presentation) MOTION: I move to approve Resolution No. 4701, confirming Mayoral assignments of Councilmembers to various community boards and committees for the years 2026-2027. 10. UNFINISHED BUSINESS 209 - 239 (a) Ordinance No. 4804 - Adjustment to Utility Rate and Connection Fee - Water and Sewer (10 minute staff presentation) MOTION: I move to adopt Ordinance No. 4804, amending and repealing Sections of Pasco Municipal Code in Chapter 3.35 Fee Summary and amending and repealing Sections in Title 13 Water and Sewers to adjust rates and connection fees for City Water and Sewer Utilities and, further authorize publication by summary only. 240 - 292 (b) Resolution No. 4681 - Authorization of a $14.727 Million Dollar DWSRF Loan -Contract No. DWL31572-0 (5 minute staff presentation) MOTION: I move to approve Resolution No. 4681, approving and authorizing the execution of a $14.727 million dollar Drinking Water State Revolving Fund Loan Contract No. DWL 31572-0 with the Washington State Department of Health for the Butterfield Water Treatment Plant Raw Water Pump Station and Electrical Page 4 of 325 Improvements project. 293 - 315 (c) Approve Tri-City Regional Hotel-Motel Commission (TCRHMC) Tourism Promotion Area (TPA) 2026 Budget and Marketing Plan (3 minute staff presentation) MOTION: I move to approve the Tri-City Regional Hotel-Motel Commission (TCRHMC) 2026 Budget and Marketing Plan. 11. NEW BUSINESS 12. MISCELLANEOUS DISCUSSION 316 - 323 (a) City Manager Report 13. EXECUTIVE SESSION 14. ADJOURNMENT 15. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 324 - 325 (b) Adopted Council Goals (Reference Only) Page 5 of 325 AGENDA REPORT FOR: City Council January 9, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Debra Barham, City Clerk City Manager SUBJECT: Approval of Meeting Minutes for January 5th I. ATTACHMENT(S): 1.5.2026 Draft Council Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Regular Meeting held on January 5, 2026. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 325 MINUTES City Council Regular Meeting 7:00 PM - Monday, January 5, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:00 PM by Debby Barham, City Clerk. ROLL CALL Councilmembers present: Mark Figueroa, Charles Grimm, Leo Perales, David Milne, Calixto Hernandez, and Abel Campos Councilmembers attending remotely: Councilmembers absent: None Staff present: Harold Stewart, City Manager; Richa Sigdel, Deputy City Manager; Kevin Crowley, Fire Chief; Kevin Hebdon, Finance Director; Daniel Kenny, City Attorney; Craig Raymond, Community & Economic Development Deputy Director; Sara Matzen, Human Resources Director; Ken Roske, Police Chief; Maria Serra, Public Works Director; Debby Barham, City Clerk; and Krystle Shanks, Deputy City Clerk The meeting was opened with the Pledge of Allegiance. SELECTION OF TEMPORARY PRESIDING OFFICER (TO CHAIR BEGINNING OF MEETING) City Clerk Barham read the instructions for selecting an temporary presiding Officer to run the meeting until the Mayor is elected. Mr. Grimm nominated Mr. Milne as the temporary presiding Officer to chair the meeting until the Mayor is elected. Council concurred with the nomination. MOTION: Mayor & Councilmember - District 2 Grimm moved, seconded by Councilmember Perales to select Mr. Milne as the Temporary Presiding Officer to Chair the beginning of the Meeting. Page 1 of 7Page 7 of 325 RESULT: Motion carried 6-0 AYES: Councilmember Figueroa, Mayor & Councilmember - District 2 Grimm, Councilmember Perales, Mayor Pro Tem & Councilmember - District 5 Milne, Councilmember Hernandez, and Councilmember Campos ELECTION OF MAYOR Chair Milne called for nominations for Mayor. Mr. Milne nominated Mr. Grimm for Mayor. Following three calls the nominations were closed by interim Meeting Chair MIlne. Roll Call Vote: Councilmember Campos - Yes Councilmember Grimm -Yes Councilmember Figueroa -Yes Councilmember Hernandez -Yes Councilmember Milne - Yes Councilmember Perales - Yes The vote carried 6-0. Councilmember Grimm was elected Mayor effective January 5, 2026 through December 31, 2027. ELECTION OF MAYOR PRO TEM Mayor Grimm called for nominations for Mayor Pro Tem. Mr. Figueroa nominated Mr. Milne for Mayor Pro Tem. Following three calls the nominations were closed by Mayor Grimm. Roll Call Vote: Councilmember Campos -Yes Councilmember Grimm - Yes Councilmember Figueroa - Yes Councilmember Hernandez - Yes Councilmember Milne - Yes Councilmember Perales - No The vote carried 5 to 1. Page 2 of 7Page 8 of 325 Councilmember Milne was elected Mayor Pro Tem effective January 5, 2026, through December 31, 2027. RECESS Mayor Grimm called for a 10-minute recess to arrange Council seating at 7:10 PM and the meeting was called back to order at 7:20 PM. CONSENT AGENDA Approval of Meeting Minutes for December 1st and 8th To approve the minutes of the Pasco City Council Regular Meeting held on December 5, 2025, Special Meeting and Special Workshop held on December 8, 2025. Bills and Communications - Approving Claims in the Total Amount of $23,046,718.81 and Write-off Totaling $2,500.00 (delinquent bad debt) To approve claims in the total amount of $23,046,718.81 ($8,448,651.11 in Check Nos. 275274 - 275766; $3,343,312.70 in Electronic Transfer Nos. 851768 - 851772, 851847 - 851855, 851857 - 851867, 851960 - 851963, 851970 - 851971, 851974 - 851976; $21,409.77 in Check Nos. 55110 - 55122; $3,267,446.36 in Electronic Transfer Nos. 30234695 - 30236003 $7,965,898.87 in Electronic Transfer Nos. 1034 - 1035). To approve bad debt write-off for accounts receivable including Utility Billing, Ambulance, Cemetery, General Accounts, and Miscellaneous Accounts in the total amount of $2,500.00 and, of that amount, authorize $2,500.00 to be turned over for collection. MOTION: Mayor Pro Tem & Councilmember - District 5 Milne moved, seconded by Councilmember Figueroa to approve the Consent Agenda as read by Roll Call vote. RESULT: Motion carried 6-0 AYES: Councilmember Figueroa, Mayor & Councilmember - District 2 Grimm, Councilmember Perales, Mayor Pro Tem & Councilmember - District 5 Milne, Councilmember Hernandez, and Councilmember Campos PROCLAMATIONS AND ACKNOWLEDGEMENTS PUBLIC COMMENTS Amber Wade, Pasco resident, played a recording from her phone related to an ongoing personal incident. She spoke about displacement concerns and Page 3 of 7Page 9 of 325 challenges related to economic and affordable housing. Mary Mahoney, Pasco resident, commented on several topics, including Tri-Cities Animal Control, the Capital Improvement Program (CIP) budget, homelessness, low-cost spay and neuter services, the Pasco Public Facilities District Aquatic Center and Memorial Pool, floodplain development, eaglet protection, and Local Improvement Districts (LIDs). Lori Thompson, Pasco resident, welcomed the newly seated Councilmembers and expressed appreciation for their service. She expressed concerns regarding illegal aerial fireworks during the Christmas and New Year holidays, as well as issues related to water, sewer, and utility rates, and landscaping standards. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Mayor Pro Tem Milne reported participating in a Tri-Cities Animal Shelter tour, Wreaths Across America annual event at the City View Cemetery, and Pasco Winterfest. Mr. Figueroa reported being invited as a panelist at Columbia Basin College (CBC) and the AWC Elected Officials Workshop. He also participated in a meet- and-greet with downtown business owners held last Friday. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Resolution No. 4692 - Setting Time and Date for a Public Hearing for a Right- of-Way Vacation-Tierra Vida Phase 1 Westerly 20 Feet (VAC2025-003) Mr. Raymond provided a brief report related to setting a public hearing for consideration of a right-of-way vacation in the location of Tierra Vida Phase 1. MOTION: Mayor Pro Tem & Councilmember - District 5 Milne moved, seconded by Councilmember Hernandez to approve Resolution No. 4692, setting 7:00 PM on Tuesday, February 17, 2026, as the time and date for a public hearing to consider the vacation of the westerly 20 feet of Tierra Vida Phase One, as established by Auditor’s File Number 1691585. RESULT: Motion carried 6-0 AYES: Councilmember Figueroa, Mayor & Councilmember - District 2 Grimm, Councilmember Perales, Mayor Pro Tem & Councilmember - District 5 Milne, Councilmember Hernandez, and Councilmember Campos Ordinance No. 4808A - Amended 2026 Administrative/Professional Wages Ms. Matzen provided a brief report on technical amendments needed to the Page 4 of 7Page 10 of 325 recently approved 2026 Administrative and Professional Wages for non- represented staff. MOTION: Mayor Pro Tem & Councilmember - District 5 Milne moved, seconded by Councilmember Campos to adopt Ordinance No. 4808A, amending wages for certain administrative/professional, non-management personnel for calendar year 2026. RESULT: Motion carried unanimously. 6-0 AYES: Councilmember Figueroa, Mayor & Councilmember - District 2 Grimm, Councilmember Perales, Mayor Pro Tem & Councilmember - District 5 Milne, Councilmember Hernandez, and Councilmember Campos UNFINISHED BUSINESS Presentation - Columbia River Shoreline Reconveyance Update Mr. Rice introduced Karl Dye and David Reepleog from the Tri-City Development Council (TRIDEC) who provided an update on the Columbia River shoreline reconveyance and answered questions asked by Council. NEW BUSINESS Declare Council Position No. 4 Servicing Council District No. 4 Vacant Ms. Barham introduced Mr. Kenny, City Attorney who provided a brief summary on declaring Council Position No. 4 vacant. MOTION: Mayor Pro Tem & Councilmember - District 5 Milne moved, seconded by Councilmember Figueroa to declare Pasco City Council Position No. 4, serving Council District No. 4 vacant. RESULT: Motion carried 6-0 AYES: Councilmember Figueroa, Mayor & Councilmember - District 2 Grimm, Councilmember Perales, Mayor Pro Tem & Councilmember - District 5 Milne, Councilmember Hernandez, and Councilmember Campos Council Appointment Process for Council Position No. 4, Voting District No. 4 Ms. Barham provided a brief overview of the process to fill the vacant Council Position No. 4 and outlined options for how Council could proceed. Mayor Grimm invited Mr. Cotta to the podium to speak regarding his interest in being re-appointed to Council Position No. 4. Page 5 of 7Page 11 of 325 Mayor Pro Tem Milne expressed appreciation for Mr. Cotta’s leadership and stated support for his reappointment to Council. Mr. Hernandez stated he would prefer opening the position to seek a pool of applicants. Mr. Figueroa asked whether the discussion could take place in Executive Session. Mr. Stewart advised that, because the discussion concerned deliberations on the process rather than the qualifications of a specific candidate, the discussion should take place in open session. Mr. Perales moved to re-appoint Mr. Cotta to Council Position No. 4. The motion was seconded by Mayor Pro Tem Milne. Roll Call Vote: Campos - Yes Figueroa - Yes Hernandez - No Perales - Yes Milne - Yes Grimm - Yes The motion carried 5-1. Mr. Cotta was re-appointed to Council Position No. 4. He will take his oath of office at the next Workshop. MISCELLANEOUS DISCUSSION Mr. Stewart welcomed Council to the new year and expressed appreciation for having a fully seated Council noting that was the first time during his tenure. He asked Council if they had any questions regarding the City Manager’s report provided in the agenda packet and no one asked for clarification on the report. Mr. Stewart announced that Officer Phil Hanks will be presented with a Purple Heart Medal for courageous service on Thursday, January 8, at 9:00 a.m. at the Pasco Police Department community room and invited Council and the public to attend. Mr. Stewart introduced Kevin Hebdon, the City’s new Finance Director, who attended his first City Council meeting, and noted that the new City Attorney, Mr. Kenny, had also been introduced earlier in the meeting. He reported that Griselda Garcia, Finance Manager and previous Interim Finance Director, has submitted her resignation, with her last day being January 7th, and publicly thanked her for her service, including her role as Interim Finance Director. Page 6 of 7Page 12 of 325 Mr. Stewart informed Council of a developer outreach meeting regarding water and sewer connection fees and rates scheduled for Wednesday, January 7th, at 12:00 p.m. in the Council Chambers and invited Councilmembers to attend. Mr. Perales reported being contacted by Joe Thornton of Big Bro Joe, who is interested in relocating his organization to Pasco and requested an opportunity to provide a 5 to 10 minute presentation to Council on partnering with the City. Council expressed interest, and Mr. Stewart offered to help coordinate a future workshop agenda item. ADJOURNMENT There being no further business, the meeting was adjourned at 8:28 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: Charles Grimm, Mayor Krystle Shanks, Deputy City Clerk Page 7 of 7Page 13 of 325 AGENDA REPORT FOR: City Council January 12, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Kevin Hebdon, Director Finance SUBJECT: Bills and Communications - Approving Claims in the Total Amount of $6,229,294.35 I. ATTACHMENT(S): Accounts Payable 12.24.25 to 01.07.26 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $6,229,294.35 ($2,316,475.25 in Check Nos. 275767 - 275970; $2,587,391.63 in Electronic Transfer Nos. 851773 - 851846, 851868 - 851959, 851977 - 852036, 852040 - 852047, 852052 - 852053; $17,325.97 in Check Nos. 55123 - 55133; $1,308,101.50 in Electronic Transfer Nos. 30236004 - 30236705). III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: There are two categories of accounts receivable write-offs: 1. Direct write-offs are small in value or, in the case of Ambulance Fund, reflect a reduction of fees related to a discount required by DSHS and Medicare. These direct write-offs are not sent to collection. 2. Write-offs referred to collection and have been in arrears for a given number of days and exceed minimum values that move them out of the direct write-off category. Please see the summary page attached to this agenda item for details. V. DISCUSSION: Page 14 of 325 REPORTING PERIOD: January 20, 2026 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 275767 - 275970 55123 - 55133 Total Check Amount $2,316,475.25 $17,325.97 Total Checks 2,333,801.22$ Electronic Transfer Numbers 851773 - 851846 30236004 - 30236705 851868 - 851959 851977 - 852036 852040 - 852047 852052 - 852053 Total EFT Amount $2,587,391.63 $1,308,101.50 $0.00 $0.00 Total EFTs 3,895,493.13$ Grand Total 6,229,294.35$ Councilmember B 100 627,828.06 110 1,193.41 140 567.95 142 326.40 145 501.67 150 3,217.52 160 12,166.18 165 42,414.61 168 27,129.46 170 623.05 180 237.29 188 46,001.57 189 817.05 194 18,523.97 195 200.69 196 HOTEL/ MOTEL EXCISE TAX 5,000.00 367 881,497.04 410 2,499,228.76 510 34,847.65 511 4,010.75 520 542,998.46 690 1,479,962.81 GRAND TOTAL ALL FUNDS:6,229,294.35$ PAYROLL CLEARING UTILITY, WATER/ SEWER EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - OPERATING BUSINESS MEDICAL/ DENTAL/ VISION INSURANCE ECONOMIC DEVELOPMENT STADIUM/ CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION MULTI-MODAL FACILITY SPECIAL ASSESSMENT LODGING LITTER ABATEMENT CEMETERY ATHLETIC PROGRAMS ANIMAL CONTROL SENIOR CENTER OPERATING C.D. BLOCK GRANT HOME CONSORTIUM GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE Councilmember A SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 20th day of January, 2026 that the merchandise or services hereinafter specified have been received and are approved for payment: December 24, 2025 to January 7, 2026 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved The City Council City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim. Harold Stewart, City Manager Kevin Hebdon, Finance Director Page 15 of 325 AGENDA REPORT FOR: City Council January 6, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4693 - Professional Services Agreement Amendment No. 3 with RH2 Engineering, Inc. for Design Services for the Process Water Reuse Facility Phase 4 Irrigation System Farm Upgrades Project (5 minute staff presentation) I. ATTACHMENT(S): Resolution Exhibit A - Amendment No. 3 to Professional Services Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:City the authorizing 4693, No. approve to move I Resolution Manager to execute Amendment No. 3 for the professional services agreement with RH2 Engineering, Inc. for the design of the Process Water Reused Facility (PWRF) Improvement Phase 4: Irrigation System Farm Upgrades Project. III. FISCAL IMPACT: Summary: Original PSA $462,640.00 Amendment No. 1 $68,013.00 Amendment No. 2 $306,744.00 Proposed Amendment No. 3 $64,889.00 New PSA Total $904,286.00 Adopted budget for this project in the 2025-2026 Biennial budget is $ 17M as follows:  $4.5M are bonded  $12.5M were anticipated as an award of Clean water SRF loan from Ecology, but were not received. A $2.5M interfund loan is anticipated to cover remaining project costs. Page 16 of 325 IV. HISTORY AND FACTS BRIEF: Background: The Process Water Reuse Facility (PWRF) Irrigation System Farm Upgrades Project encompasses the fourth phase of the current series of 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, 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. Prior amendment No. 2 to the PSA addressed various evolving project needs. These included 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. As funding availability and immediate needs for the facility were further refined, the scope of the project was subject to revisions and adjustments. Impact: The proposed upgrades will provide the distribution and irrigation infrastructure needed to increase PWRF operations and met the State Waste Discharge Permit for the next season. The upgrades needed and the addition of two irrigation fields allows PWRF to not only meet the State Waste Discharge Permit, but also allow for a more robust irrigation for the added processor capacity to PWRF. V. DISCUSSION: Recommendation: Page 17 of 325 This item is scheduled to be presented to Council at the January 12, 2026, Workshop as a discussion item. Staff has reviewed and recommends approval of Amendment No. 3 to the PSA with RH2 Engineering in the amount of $64,889.00 for the PWRF - Phase 4 Irrigation System Farm Upgrades project. The proposed Amendment No. 3 to RH2 Professional services agreement addresses the additional work need for the electrical work. The amendment also is there construction, during as consultant additional adds services believed to be a high likelihood of unidentified utilities that will need to be relocated or repaired, specifically through the tight easement for the main process water lines. Constraints: The construction of this project needs to be completed during the non-irrigation season to minimize interruptions or impacts to normal PWRF Farm Operations. Anticipated necessitate land additional the will flows in PWRF at 2026 treatment area. Next Steps: Provided the Council approves the amendment, staff will work with the consultant to complete all necessary contractual documentation in the upcoming weeks. Alternatives:  Council may choose to reject the amendment. This is not recommended since the additional electrical work that is needed and the additional construction support to ensure construction meets its deadlines. The timeline associated with this alternative action would hinder expansion of the land treatment system and therefore fail to comply with the parameters established for the facility under the State Waste Discharge Permit for PWRF; likely resulting in violation of the permit and/or limiting industries from sending flows to the facility which has, in turn, a negative economic impact to the industries and the utility. Page 18 of 325 Resolution - PWRF PH 4 PSA Amendment No. 3 - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON. AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 FOR THE PROFESSIONAL SERVICES AGREEMENT WITH RH2 ENGINEERING, INC. FOR THE DESIGN OF THE PROCESS WATER REUSE FACILITY (PWRF) 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 9th, 2023, to provide Engineering services with respect to the PWRF Improvements project; and WHEREAS, the City and RH2 Engineering Inc., entered into Amendment No. 1 on November 23, 2023, to additional professional design engineering services; and WHEREAS, the City and RH2 Engineering Inc., entered into Amendment No. 2 on September 17, 2025, to additional professional design engineering services, servi ces during construction, and additional time of performance; 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. 3 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. 3 between the City of Pasco and RH2 Engineering 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. 3 on behalf of the City of Pasco, and Be It Further Resolved, that this resolution shall take effect immediately. Page 19 of 325 Resolution - PWRF PH 4 PSA Amendment No. 3 - 2 PASSED by the City Council of the City of Pasco, Washington, on this __ day of January, 2026. Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 20 of 325 RH2 Engineering, Inc.COMPANY NAME – Amendment No. XXXX-32 to PSA PWRF Irrigation System ImprovementsPROJECT NAME – Project Number (if applicableNo. 23465) Version 08.15.2025 Page 1 Formatted: Font: 10 pt Formatted: Font: Georgia, 10 pt Formatted: Not Highlight AMENDMENT NUMBER {Agreement No.-Amendment No. “18001-2”}23 to PROFESSIONAL/PERSONAL SERVICES AGREEMENT PWRF Irrigation System ImprovementsPROJECT NAME PROJECT: Finance Project No23465 AGREEMENT NO. Agreement No from original PSA. If none, assign according to Clerk List23-014 WHEREAS, the City and RH2 Engineering, Inc.CONTRACTOR/CONSULTANT COMPANY NAME entered into a Professional Services Agreement on Month, Day, 20##5/9/2023 to provide engineering _________ services with respect to the PPWRF Irrigation System ImprovementsROJECT NAME project. WHEREAS, the City and RH2 Engineering, Inc.CONTRACTOR/CONSULTANT COMPANY NAME entered into an Amendment/Amendment No. # 1 to provide additional engineering services _______________ on Monday, Day, 20##.11/27/2023. WHEREAS, the City and RH2 Engineering, Inc. entered into an Amendment No. 2 to provide additional engineering services on 9/17/2025. NOW, THEREFORE, this agreement is amended to allow RH2 Engineering, Inc.CONTRACTOR/ CONSULTANT COMPANY NAME to provide additional professional engineering services, and additional services during construction, and additional time of performance ______________ services 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 $0306,74464,889.00 for a total authorization amount of $837,397902,2860.00. See Exhibit B for full breakdown.. 3. Time of performance: The time of performance for services are unchanged and will shall now be complete for the project on or before Month Day, 20XX12/31/2026. Formatted: Not Highlight Formatted: Indent: First line: 0" Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Font: Times New Roman, 12 pt, Not Highlight Formatted: Not Highlight Formatted: Font: Not Bold Resolution Exhibit A Page 21 of 325 RH2 Engineering, Inc.COMPANY NAME – Amendment No. XXXX-32 to PSA PWRF Irrigation System ImprovementsPROJECT NAME – Project Number (if applicableNo. 23465) Version 08.15.2025 Page 2 Formatted: Font: 10 pt Formatted: Font: Georgia, 10 pt Formatted: Not Highlight DATED THIS DAY______________________________. [date of execution] CITY OF PASCO, WASHINGTON CONSULTANT/CONTRACTOR NAMERH2 ENGINEERING, INC. Harold L. Stewart II, City Manager (> $50,000) Dan Mahlum, PE – Principal Name, Title Department Director (< $50,000) Formatted: Not Highlight Formatted: Font: Not Italic Resolution Exhibit A Page 22 of 325 1 12/1/2025 12:50:34 PM J:\Data\PSC\23-0092\00 Contract\A-3\A-3_SOW_PWRF Irrigation System Improvements.docx Scope of Work Amendment No. 3 City of Pasco PWRF Irrigation System Improvements Additional Work December 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, additional design and coordination effort was required to extend Franklin Public Utility District (PUD) power to the proposed pivots and booster pump station and to design control panels. Moving into construction, there is a high likelihood that the many unmarked utilities throughout the LTS will require relocation or repair, specifically through the existing 30-foot Blasdel easement adjacent to the PWRF. This will require additional construction support from RH2. This amendment captures the level of effort necessary to accommodate the additional design to extend power and to provide a contingency for additional services during construction . Subtask numbering is continued from the original contract and previous amendments. Task 14 – Bid-Ready Plans and Specifications Objective: Prepare bid-ready project plans and specifications to reflect the updated power and communication improvements. Approach: 14.3 Provide additional design effort and coordination with Franklin PUD for extending overhead and buried power to the proposed booster pump station (Circles 13 and 14). 14.4 Provide additional design effort for the proposed control panels at the proposed booster pump station (Well 8 and Circles 13 and 14). Provided by City: •Timely review comments as markups on the bid-ready design plans and specifications. RH2 Deliverables: •Updated bid-ready plans and details in electronic PDF. •Updated bid-ready technical specifications in electronic PDF. EXHIBIT A Resolution Exhibit A Page 23 of 325 City of Pasco Exhibit A PWRF Irrigation System Improvements Scope of Work Additional Work Amendment No. 3 2 12/1/2025 12:50:34 PM J:\Data\PSC\23-0092\00 Contract\A-3\A-3_SOW_PWRF Irrigation System Improvements.docx 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: Provide additional on-call assistance as requested by the City to address unforeseen circumstances during construction, including relocation or repair of unmarked utilities. Assist the City with preparing a change proposal request and recordable temporary construction easement figures for the relocation and expansion of the Circle 14 pivot. This effort will include updates to the engineering report for Ecology and grading permit coordination with the County. 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 eighty-eight (88) additional hours has been included in this Amendment to continue support to review technical submittals, respond to contractor questions, provide limited on-site observations, and assist with change orders, 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. • The Circle 14 pivot expansion will only require a grading permit from the County. This task does not include any State Environmental Policy Act (SEPA) coordination. RH2 Deliverables: • Applicable technical submittal and RFI responses in electronic PDF. • Field notes summarizing on-site observations in electronic PDF. • Updated engineering report in electronic PDF. • Change order proposals in electronic PDF. 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 December 2026. Resolution Exhibit A Page 24 of 325 EXHIBIT B Fee Estimate Amendment No. 3 City of Pasco PWRF Irrigation System Improvements Additional Work Dec-25 Description Total Hours Total RH2 Labor Total Subconsultant Total Expense Total Cost Task 14 Bid-Ready Plans and Specifications 120 28,740$ -$ 719$ 29,459$ Task 15 Services During Construction (Limited)140 32,908$ 1,000$ 1,523$ 35,431$ PROJECT TOTAL 260 61,648$ 1,000$ 2,241$ 64,889$ \\corp.rh2.com\projects\Project\Data\PSC\23-0092\00 Contract\A-3\A-3_FEE_PWRF Irrigation System Improvements 12/1/2025 12:54 PM Resolution Exhibit A Page 25 of 325 RATE LIST RATE UNIT Professional I $182 $/hr Professional II $199 $/hr Professional III $222 $/hr Professional IV $243 $/hr Professional V $259 $/hr Professional VI $280 $/hr Professional VII $306 $/hr Professional VIII $333 $/hr Professional IX $336 $/hr Technician I $139 $/hr Technician II $154 $/hr Technician III $178 $/hr Technician IV $189 $/hr Technician V $206 $/hr Technician VI $226 $/hr Technician VII $245 $/hr Technician VIII $257 $/hr Administrative I $94 $/hr Administrative II $109 $/hr Administrative III $129 $/hr Administrative IV $154 $/hr Administrative V $180 $/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. 2026 SCHEDULE OF RATES AND CHARGES Rates listed are adjusted annually. Resolution Exhibit A Page 26 of 325 AGENDA REPORT FOR: City Council November 20, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Haylie Matson, Director Community & Economic Development SUBJECT: Resolution Nos. 4694, 4695, 4696, 4697 & 4698 - Helena 1 and 2 Development Reimbursement Agreements with Broetje Orchard LLC and Jubilee Foundation (5 minute staff presentation) I. ATTACHMENT(S): Resolutions Exhibit-Development Reimbursement Agreements Presentation from 1.12.2026 WS II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:Utility authorizing 4694, No. a approve to move I Resolution Developer Reimbursement (Latecomer) Agreement with Broetje Orchards, LLC, a 1, Helena for utility improvements of construction the for sewer residential subdivision. MOTION: I move to approve Resolution No. 4695, authorizing a Street System Developer Reimbursement (Latecomer) Agreement with Broetje Orchards, LLC, for the construction of street improvements for Helena 1, a residential subdivision. MOTION:4696, Utility a authorizing No. I approve to move Resolution Developer Reimbursement (Latecomer) Agreement with Broetje Orchards, LLC, a Helena for improvements utility 1, of construction the for water residential subdivision. MOTION: I move to approve Resolution No. 4697, authorizing a Street System Developer Reimbursement (Latecomer) Agreement with Jubilee Foundation for the construction of street improvements for Helena 2, a residential subdivision. MOTION:a authorizing 4698, No. Resolution move to I Utility approve Developer Reimbursement (Latecomer) Agreement with Jubilee Foundation for the construction of water utility improvements for Helena 2, a residential subdivision. Page 27 of 325 III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background: Revised Code of Washington (RCW) 35.72 and 35.91 authorize municipalities to enter into agreements with developers who construct utility and street system improvements at their own expense. These statutes also provide a mechanism for reimbursement by subsequently benefiting property owners. As a condition of development, Ralph and Cheryl Broetje, operating as Broetje Orchard to required were developer), Jubilee Foundation and LLC (the construct public improvements that also benefit adjacent and future properties. To recover the portion of costs attributable to these benefiting properties, the developer submitted five separate Developer Reimbursement (Latecomer) Agreement applications for utility and street system improvements. During construction of the Helena 1 and Helena 2 projects, the developer installed three-quarter-width road improvements along Sprague Ave., Estrella Dr., and Eureka Ave, meeting the concurrency development standards of PMC 12.36.050(1)(a). The projects also installed domestic water improvements in Sprague Ave., Estrella Dr., and Eureka Ave, and sanitary sewer improvements in Sprague Ave. and Estrella Dr., meeting the standards of PMC 12.36.050(2). Six parcels outside the Helena 1 and Helena 2 plats receive benefit from these improvements. V. DISCUSSION: This item was scheduled to be discussed at Council's January 12, 2026, Workshop. Recommendation: Staff recommends that City Council consider approval of the five Developer Reimbursement Agreements with Ralph and Cheryl Broetje, operating as Broetje Orchard LLC and Jubilee Foundation, for utility and street system improvements along Sprague Ave., Estrella Drive, and Eureka Ave. PMC Chapter 14.25 aligns with these RCWs and outlines the process by which a developer may enter into a reimbursement agreement with the City. Once executed, the City may collect proportional assessments from other properties that directly benefit from the improvements and reimburse the developer accordingly. Page 28 of 325 The improvements have been accepted by the City, and staff has reviewed the final cost documentation submitted by the developer and confirmed it to be accurate and eligible. If approved, the reimbursement agreements for street system improvements will remain in effect for 15 years, and the reimbursement agreements for utility improvements will remain in effect for 20 years. Recommendations Alternatives:  Delay decision-All requirements have been met by the developer, and the City has followed the necessary process. Staff is not aware of additional information that would be needed to act on this request.  Request modifications to the agreement-The agreement contains the same terms as previously executed Developer Reimbursement Agreements. The terms align with the PMC and all applicable RCWs. The agreements have been reviewed by the City’s legal counsel and found to be legally sound.  Deny the request to approve the agreements-RCW 35.91 requires municipalities to enter into such agreements when properly requested by an owner or developer. Denial could expose the City to legal risk. Page 29 of 325 Resolution – Helena 1 Sewer DRA (Latecomer) - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A UTILITY DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH BROETJE ORCHARDS, LLC, FOR THE CONSTRUCTION OF SEWER UTILITY IMPROVEMENTS FOR HELENA 1, A RESIDENTIAL SUBDIVISION. WHEREAS, RCW 35.91 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter developer reimbursement agreements when the developer, as a condition of development, pays the costs of necessary infrastructure improvements; and WHEREAS, Broetje Orchards, LLC has submitted a complete and accurate application for a street system developer reimbursement agreement; and WHEREAS, the City shall also provide notice of its preliminary assessment reimbursement area (those to repay the latecomer debt) to provide the property owners within the preliminary assessment area the opportunity to request the matter be submitted to a public hearing, within 20 days of date of mailing of the notice, before Council action; and WHEREAS, the City mailed notices of the preliminary assessment and reimbursement to the property owners within the preliminary reimbursement area on October 29, 2024, and did not receive in writing a request for a hearing before council; and WHEREAS, utility improvements include infrastructure projects related to City water, sewer, and storm sewer which is required to be constructed as a prerequisite of continued development; and WHEREAS, utility developer reimbursement agreements shall meet the development criteria as detailed in the PMC Subsection 14.25.030(3)(b); and WHEREAS, Broetje Orchards, LLC agrees to payment of project costs, including legal and administrative costs, as set forth in the Developer Reimbursement Agreement, attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the developer reimbursement agreement for utility system improvements, a copy of which is attached hereto and incorporated herein by reference as Exhibit A., and Be It Further Resolved, that the City Manager be authorized to make minor substantive changes to the developer reimbursement agreement as needed, and Page 30 of 325 Resolution – Helena 1 Sewer DRA (Latecomer) - 2 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 January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 31 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 1 of 9 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Avenue Pasco, WA 99301 Developers Tax Parcel No.: Parcel# 113-881-024 AGRMT2024-015s Legal Description: WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of___________, 2026, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as “City”, and Broetje Orchards LLC, their successors and assigns, hereinafter referred to as “Developer”; and WHEREAS, RCW Chapter 35.91 and PMC 14.25 authorize contracts between a municipality and the owners of real estate within the municipality’s corporate limits or within ten (10) miles of the municipality’s corporate limits, who construct Utility facilities to serve their own properties and other properties, whereby such owners and municipalities may be reimbursed by the owners of other real property who did not contribute to the original cost of the construction of the facilities, but who later desire to connect their properties to said facilities. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Developer has constructed the following described extension of City’s facilities: The installation of 751 feet of gravity fed 8” PVC sewer pipe commencing in the intersection of Helena St. and Sprague Ave. connecting to a manhole and heading south through Sprague Ave. approximately 445 feet, then heading southwest for approximately 60 feet, then heading west through Estrella Dr. and connecting at an existing manhole in the intersection of Estrella Dr. and Eureka Ave and also including all appurtenances. 2. The improvements have been constructed in accordance with plans and specifications approved by City prior to construction and Developer has supplied City with reproducible as-built drawings regarding the facilities. Page 32 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 2 of 9 3. In addition to serving properties owned by Developer at the outset of construction, the facilities constructed will also serve the following described parcels of real property, and any subdivisions of such parcels, that did not contribute to the cost of the facilities construction, hereinafter referred to in aggregate as the "Assessment Area", which is determined at the sole discretion of the City, and which are identified and legally described in Exhibit C. 4. As the facilities have been construction in accordance with City Codes and Standards, applicant obtained all permits required by the City’s Codes and Standards. The work is physically complete and inspected by the City as required by the Public Works Director, or his designee. Developer agrees to convey such facilities to City for the consideration and benefits of City. Upon completion project acceptance by council the City will thereafter own and operate said facilities subject to all of the laws and regulations, fees and assessments of City. 5. City and Developer agree that Developer’s contributions to the total project costs is shown in Exhibit B, which is allowed by statute to include costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the City’s contributions to the total project costs is or will be valued at $0, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 7. City and Developer agree that the Total Assessment is attributed to the Assessment Area is shown in Exhibit A. City and Developer agree that Developer is entitled to a potential total reimbursement, less any collection charges deducted by the City, of a maximum of total assessment as shown in Exhibit B. 8. The facilities subject to this Agreement are included within the City's comprehensive utility plan, and no additional comprehensive plan approval for the utility system improvements was required. 9. Execution of this Agreement is conditioned upon: Inspection and approval of the utility system improvements by the City; A. Full compliance with the Developer’s obligations under this Agreement and with the City’s rules and regulations with respect to the project described in Section 1. B. The Developer shall pay all of the City’s costs associated with processing this latecomer agreement including, but not limited to, engineering costs as set forth in Chapter 3.35 PMC, and the actual legal, recording, and administration costs. C. City verification and approval of all contracts and costs related to the utility system improvements; and Page 33 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 3 of 9 D. Within one hundred and twenty (120) days of the completion of the utility system improvements, Developer must submit the total actual cost of the utility system improvements to the City. 10. Developer agreements associated with utility system improvements shall be valid for a period not to exceed 20 years from the effective date of the agreement. While a developer agreement is valid, any person, firm or corporation now or hereafter owning benefitted properties described below, or segregated parcels thereof, desiring to connect to the described facilities, shall first pay their pro-rata share of the total cost of the facilities (“Total Assessment”). For this project, the Total Assessment is shown in Exhibit B. The individual Assessment associated with each parcel of benefited property described in this Agreement shall be charged to the property owner as shown in Exhibit B. 11. No person, firm or corporation shall be granted a permit or be authorized by City to connect to or use the referenced facilities during the period of time prescribed in Paragraph 10 above without first paying to City, in addition to any and all other costs, assessments and charges made and assessed for such tap or use, the amount required by the provisions of this contract. 12. The City shall deduct from all assessment reimbursement payments it collects; an amount (collection charge) as designated in Pasco Municipal Code (“PMC”) 3.35.180 to cover its administrative collection costs. After deduction of the collection charge, each reimbursement assessment payment will be disbursed to the Developer according to the terms of this Agreement. Any amounts so collected during the time period in Paragraph 10 above by City and due to Developer, shall be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in accordance with this Agreement. 13. Developer agrees to indemnify, defend and hold the City harmless from any action, claim or proceeding brought or maintained by any property owner challenging the validity or enforceability of this Agreement. In turn, the City agrees to cooperate with the Developer in the course of any such claim, proceeding or action to provide reasonable and lawful access to City records and witnesses. 14. Any funds collected by City and payable to Developer in accordance with the terms of this contract shall be remitted to Developer at the following address: Broejte Orchards LLC 3713 E A Street Pasco, WA. 99301 15. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall provide to the City in writing every two (2) years from the date this Agreement was executed, information regarding the current contact name, address, and telephone number of the Page 34 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 4 of 9 person, company or partnership that originally entered into the Agreement. If the Developer fails to comply with the notification requirements within sixty (60) days of the specified time, then City may collect any reimbursement funds owed to the Developer under this Agreement, and such funds shall be deposited into the capital expenditure account of the City’s utility or street fund. 16. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City (issuance of Warranty Letter), any work is found to be defective, Developer shall promptly and without cost to City, either correct such defective work or, if it has been rejected by City, remove and replace it with non-defective work. If Developer does not promptly comply with the terms of such instructions, City may have the defective work corrected or the rejected work removed and replaced and all direct and indirect costs of such removal and replacement, including compensation for professional services, shall be withheld from the reimbursement assessment payments that are due to Developer. 17. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum as shown in Exhibit B of this Agreement and remitted such amount (less any collection charges) to Developer, that City shall remit to Developer no further payments under this contract. 18. Developer hereunder is an independent contractor and is not an agent or employee of City. 19. The contract must be recorded in the appropriate county auditor's office within 30 days of its final execution. 20. In the event of a dispute between the parties regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator. The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with the substantially prevailing party being awarded its reasonable attorney fees and costs against the other. Page 35 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 5 of 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO, WASHINGTON Herald L. Stewart II – City Manager DEVELOPER – BROETJE ORCHARDS LLC Ralph Broetje, Co-Founder ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: City Attorney Page 36 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 6 of 9 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Harold L. Stewart II, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Ralph Broetje for Broetje Orchards LLC, to be known to be the individual described in and who executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of _____________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ Page 37 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 7 of 9 EXHIBIT A Page 38 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 8 of 9 PE R M I T # P a r c e l Fr o n t a g e [ F T ] Al l o c a t i o n o f C o s t [% ] = [ ( I n d i v i d u a l Pa r c e l F r o n t a g e [F T ] ) / ( T o t a l P a r c e l Fr o n t a g e [ F T ] ) ] Al l o c a t i o n o f C o s t [ $ ] = ( A l l o c a t i o n o f C o s t [% ] ) * ( T o t a l E s t i m a t e ) 11 3 - 8 8 1 - 0 2 4 BR O E T J E O R C H A R D S , L L C ( D E V E L O P E R ) N/ A 47 0 . 3 1 31 . 7 2 % 14 , 9 9 9 . 8 5 $ 11 3 - 8 8 2 - 0 4 2 JU B I L E E F O U N D A T I O N ( D E V E L O P E R ) N/ A 30 0 . 9 4 20 . 2 9 % 9, 5 9 8 . 0 4 $ 11 3 - 8 8 2 - 0 9 6 JO S E A L M A R A Z G O N Z A L E Z LC 2 4 - 0 0 5 3 21 9 . 5 6 14 . 8 1 % 7, 0 0 2 . 5 4 $ 11 3 - 8 8 2 - 1 2 1 EL P I D I O & M A R I A G A R C I A LC 2 4 - 0 0 5 4 35 6 . 4 9 24 . 0 4 % 11 , 3 6 9 . 7 2 $ 11 3 - 8 8 2 - 1 1 2 EU S T O L I A G O N Z A L E Z LC 2 4 - 0 0 5 5 13 5 . 5 4 9. 1 4 % 4, 3 2 2 . 8 5 $ TO T A L S : 14 8 2 . 8 4 10 0 . 0 0 % 22 , 6 9 5 . 1 2 $ 22 , 6 9 5 . 1 2 $ AS S E S S M E N T A M O U N T : 75 1 L F 8 " S E W E R BR O E T J E - H E L E N A # 1 EXHIBIT B AG R E E M E N T N O . AG R M T 2 0 2 4 - 0 1 5 Im p r o v e m e n t To t a l F r o n t a g e 14 8 2 . 8 4 F T De v e l o p e r ' s T o t a l C o s t o f I m p r o v e m e n t $4 7 , 2 9 3 . 0 0 Be n e f i t A r e a Pa r c e l # , O w n e r AS S E S S M E N T A R E A DE V E L O P E R A R E A Page 39 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 9 of 9 EXHIBIT C BENEFITTING AREA Developer Area 113-881-024 WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 113-882-042 ALL OF BLOCKS 11 & 12 WASHINGTON ADDITION TOGETHER WITH VACATED STREETS AND ALLEYS ADJ PER ORD 4646-1973182 Assessment Area 113-882-096 WASHINGTON ADD LOTS 25 TO 32, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-121 WASHINGTON LOTS 17 TO 24, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-112 WASHINGTON LOTS 9 THRU 16, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 Page 40 of 325 Resolution – Helena 1 Street DRA (Latecomer) - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A STREET SYSTEM DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH BROETJE ORCHARDS, LLC, FOR THE CONSTRUCTION OF STREET IMPROVEMENTS FOR HELENA 1, A RESIDENTIAL SUBDIVISION. WHEREAS, RCW 35.72 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter developer reimbursement agreements when the developer, as a condition of development, pays the costs of necessary infrastructure improvements; and WHEREAS, Broetje Orchards, LLC has submitted a complete and accurate application for a street system developer reimbursement agreement; and WHEREAS, the City shall also provide notice of its preliminary assessment reimbursement area (those to repay the latecomer debt) to provide the property owners within the preliminary assessment area the opportunity to request the matter be submitted to a public hearing, within 20 days of date of mailing of the notice, before Council action; and WHEREAS, the City mailed notices of the preliminary assessment and reimbursement to the property owners within the preliminary reimbursement area on October 29, 2024, and did not receive in writing a request for a hearing before council; and WHEREAS, street system improvements include infrastructure projects related to City transportation network which is required to be constructed as a prerequisite of continued development; and WHEREAS, street developer reimbursement agreements shall meet the development criteria as detailed in the PMC Subsection 14.25.030(2)(b); and WHEREAS, Broetje Orchards, LLC agrees to payment of project costs, including legal and administrative costs, as set forth in the Developer Reimbursement Agreement, attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the developer reimbursement agreement for street system improvements, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager be authorized to make minor substantive changes to the developer reimbursement agreement as needed. Page 41 of 325 Resolution – Helena 1 Street DRA (Latecomer) - 2 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 January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 42 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 1 of 9 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Avenue Pasco, WA 99301 Developers Tax Parcel No.: Parcel#113-881-024 AGRMT#2024-016st Legal Description: WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of___________, 2026, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as “City”, and Broetje Orchards LLC, their successors and assigns, hereinafter referred to as “Developer”; and WHEREAS, RCW Chapter 35.72 and PMC 14.25 authorize contracts between a municipality and the owners of real estate within the municipality’s corporate limits or within ten (10) miles of the municipality’s corporate limits, who construct Street facilities to serve their own properties and other properties, whereby such owners and municipalities may be reimbursed by the owners of other real property who did not contribute to the original cost of the construction of the facilities, but who later desire to connect their properties to said facilities. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Developer has constructed the following described extension of City’s facilities: The installation of approximately 8,230 square feet of asphalt commencing at the intersection of Helena St. and Sprague Ave. heading south through Sprague Ave. approximately 450 feet then heading West approximately 300 feet through Estrella Dr. ending at the intersection of Estrella Dr. and Eureka Ave. 2. The improvements have been constructed in accordance with plans and specifications approved by City prior to construction and Developer has supplied City with reproducible as-built drawings regarding the facilities. 3. In addition to serving properties owned by Developer at the outset of construction, the facilities constructed will also serve the following described parcels of real property, and Page 43 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 2 of 9 any subdivisions of such parcels, that did not contribute to the cost of the facilities construction, hereinafter referred to in aggregate as the "Assessment Area", which is determined at the sole discretion of the City, and which are identified and legally described in Exhibit C. 4. As the facilities have been construction in accordance with City Codes and Standards, applicant obtained all permits required by the City’s Codes and Standards. The work is physically complete and inspected by the City as required by the Public Works Director, or his designee. Developer agrees to convey such facilities to City for the consideration and benefits of City. Upon completion and project acceptance by council the City will thereafter own and operate said facilities subject to all of the laws and regulations, fees and assessments of City. 5. City and Developer agree that Developer’s contributions to the total project costs is shown in Exhibit B, which is allowed by statute to include costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the City’s contributions to the total project costs is or will be valued at $0, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 7. City and Developer agree that the Total Assessment is attributed to the Assessment Area is shown in Exhibit A. City and Developer agree that Developer is entitled to a potential total reimbursement, less any collection charges deducted by the City, of a maximum of total assessment as shown in Exhibit B. 8. The facilities subject to this Agreement are included within the City's comprehensive street plan, and no additional comprehensive plan approval for the street system improvements was required. 9. Execution of this Agreement is conditioned upon: Inspection and approval of the street system improvements by the City; A. Full compliance with the Developer’s obligations under this Agreement and with the City’s rules and regulations with respect to the project described in Section 1. B. The Developer shall pay all of the City’s costs associated with processing this latecomer agreement including, but not limited to, engineering costs as set forth in Chapter 3.35 PMC, and the actual legal, recording, and administration costs. C. City verification and approval of all contracts and costs related to the street system improvements; and Page 44 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 3 of 9 D. Within one hundred and twenty (120) days of the completion of the street system improvements, Developer must submit the total actual cost of the street system improvements to the City. 10. Developer agreements associated with street system improvements shall be valid for a period not to exceed 15 years from the effective date of the agreement. While a developer agreement is valid, any person, firm or corporation now or hereafter owning benefitted properties described below, or segregated parcels thereof, desiring to connect to the described facilities, shall first pay their pro-rata share of the total cost of the facilities (“Total Assessment”). For this project, the Total Assessment is shown in Exhibit B. The individual Assessment associated with each parcel of benefited property described in this Agreement shall be charged to the property owner as shown in Exhibit B 11. No person, firm or corporation shall be granted a permit or be authorized by City to connect to or use the referenced facilities during the period of time prescribed in Paragraph 10 above without first paying to City, in addition to any and all other costs, assessments and charges made and assessed for such tap or use, the amount required by the provisions of this contract. 12. The City shall deduct from all assessment reimbursement payments it collects; an amount (collection charge) as designated in Pasco Municipal Code (“PMC”) 3.35.180 to cover its administrative collection costs. After deduction of the collection charge, each reimbursement assessment payment will be disbursed to the Developer according to the terms of this Agreement. Any amounts so collected during the time period in Paragraph 10 above by City and due to Developer, shall be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in accordance with this Agreement. 13. Developer agrees to indemnify, defend and hold the City harmless from any action, claim or proceeding brought or maintained by any property owner challenging the validity or enforceability of this Agreement. In turn, the City agrees to cooperate with the Developer in the course of any such claim, proceeding or action to provide reasonable and lawful access to City records and witnesses. 14. Any funds collected by City and payable to Developer in accordance with the terms of this contract shall be remitted to Developer at the following address: Broetje Orchards LLC 3713 E A Street Pasco, WA. 99301 15. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall provide to the City in writing every two (2) years from the date this Agreement was executed, information regarding the current contact name, address, and telephone number of the person, company or partnership that originally entered into the Agreement. If the Page 45 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 4 of 9 Developer fails to comply with the notification requirements within sixty (60) days of the specified time, then City may collect any reimbursement funds owed to the Developer under this Agreement, and such funds shall be deposited into the capital expenditure account of the City’s street fund. 16. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City (issuance of Warranty Letter), any work is found to be defective, Developer shall promptly and without cost to City, either correct such defective work or, if it has been rejected by City, remove and replace it with non-defective work. If Developer does not promptly comply with the terms of such instructions, City may have the defective work corrected or the rejected work removed and replaced and all direct and indirect costs of such removal and replacement, including compensation for professional services, shall be withheld from the reimbursement assessment payments that are due to Developer. 17. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum as shown in Exhibit B of this Agreement and remitted such amount (less any collection charges) to Developer, that City shall remit to Developer no further payments under this contract. 18. Developer hereunder is an independent contractor and is not an agent or employee of City. 19. The contract must be recorded in the appropriate county auditor's office within 30 days of its final execution. 20. In the event of a dispute between the parties regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator. The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with the substantially prevailing party being awarded its reasonable attorney fees and costs against the other. Page 46 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 5 of 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO, WASHINGTON Herald L. Stewart II – City Manager DEVELOPER – BROETJE ORCHARDS LLC Ralph Broetje, Co-Founder ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: City Attorney Page 47 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 6 of 9 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Harold L. Stewart II, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Ralph Broetje for Broetje Orchards LLC, to be known to be the individual described in and who executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of _____________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ Page 48 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 7 of 9 EXHIBIT A Page 49 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 8 of 9 PE R M I T # AR E A O F AS P H A L T ( S F ) Al l o c a t i o n o f C o s t [% ] = [ ( I n d i v i d u a l Pa r c e l F r o n t a g e [F T ] ) / ( T o t a l P a r c e l Fr o n t a g e [ F T ] ) ] Al l o c a t i o n o f C o s t [ $ ] = ( A l l o c a t i o n o f C o s t [% ] ) * ( T o t a l E s t i m a t e ) 11 3 - 8 8 1 - 0 2 4 BR O E T J E O R C H A R D S , L L C ( D E V E L O P E R ) N/ A 51 6 8 . 0 0 54 . 8 2 % 35 , 9 3 5 . 8 3 $ 11 3 - 8 8 2 - 0 9 6 JO S E A L M A R A Z G O N Z A L E Z LC 2 4 - 0 0 5 6 28 6 1 . 0 0 30 . 3 5 % 19 , 8 9 4 . 0 4 $ 11 3 - 8 8 2 - 1 2 1 EL P I D I O & M A R I A G A R C I A LC 2 4 - 0 0 5 7 13 9 9 . 0 0 14 . 8 4 % 9, 7 2 7 . 9 8 $ TO T A L S : 94 2 8 . 0 0 10 0 . 0 0 % 29 , 6 2 2 . 0 2 $ 29 , 6 2 2 . 0 2 $ AS S E S S M E N T A M O U N T : ST R E E T BR O E T J E - H E L E N A # 1 EXHIBIT B AG R E E M E N T N O . AG R M T 2 0 2 4 - 0 1 6 Im p r o v e m e n t To t a l A s p h a l t A r e a 8, 2 3 0 S F De v e l o p e r ' s T o t a l C o s t o f I m p r o v e m e n t $6 5 , 5 5 7 . 8 5 Be n e f i t A r e a Pa r c e l # , O w n e r AS S E S S M E N T A R E A DE V E L O P E R A R E A Page 50 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 9 of 9 EXHIBIT C BENEFITTING AREA Developer Area 113-881-024 WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 Assessment Area 113-882-096 WASHINGTON ADD LOTS 25 TO 32, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-121 WASHINGTON LOTS 17 TO 24, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 Page 51 of 325 Resolution – Helena 1 Water DRA (Latecomer) - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A UTILITY DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH BROETJE ORCHARDS, LLC, FOR THE CONSTRUCTION OF WATER UTILITY IMPROVEMENTS FOR HELENA 1, A RESIDENTIAL SUBDIVISION. WHEREAS, RCW 35.91 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter developer reimbursement agreements when the developer, as a condition of development, pays the costs of necessary infrastructure improvements; and WHEREAS, Broetje Orchards, LLC has submitted a complete and accurate application for a street system developer reimbursement agreement; and WHEREAS, the City shall also provide notice of its preliminary assessment reimbursement area (those to repay the latecomer debt) to provide the property owners within the preliminary assessment area the opportunity to request the matter be submitted to a public hearing, within 20 days of date of mailing of the notice, before Council action; and WHEREAS, the City mailed notices of the preliminary assessment and reimbursement to the property owners within the preliminary reimbursement area on October 29, 2024, and did not receive in writing a request for a hearing before council; and WHEREAS, utility improvements include infrastructure projects related to City water, sewer, and storm sewer which is required to be constructed as a prerequisite of continued development; and WHEREAS, utility developer reimbursement agreements shall meet the development criteria as detailed in the PMC Subsection 14.25.030(3)(b); and WHEREAS, Broetje Orchards, LLC agrees to payment of project costs, including legal and administrative costs, as set forth in the Developer Reimbursement Agreement, attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the developer reimbursement agreement for utility system improvements, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager be authorized to make minor substantive changes to the developer reimbursement agreement as needed. Page 52 of 325 Resolution – Helena 1 Water DRA (Latecomer) - 2 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 January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 53 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 1 of 9 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Avenue Pasco, WA 99301 Developers Tax Parcel No.: Parcel# 113-881-024 AGRMT2024-013w Legal Description: WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of___________, 2026, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as “City”, and Broetje Orchards LLC, their successors and assigns, hereinafter referred to as “Developer”; and WHEREAS, RCW Chapter 35.91 and PMC 14.25 authorize contracts between a municipality and the owners of real estate within the municipality’s corporate limits or within ten (10) miles of the municipality’s corporate limits, who construct Utility facilities to serve their own properties and other properties, whereby such owners and municipalities may be reimbursed by the owners of other real property who did not contribute to the original cost of the construction of the facilities, but who later desire to connect their properties to said facilities. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Developer has constructed the following described extension of City’s facilities: The installation of 761 linear feet of 8” ductile iron pipe including all appurtenances commencing at a tee connection in the intersection of Helena St. and Sprague Ave. thence running south through Sprague Ave. approximately 419 feet thence heading to the southwest approximately 40 feet thence heading west for approximately 302 feet through Estrella Dr. connecting to an 8” tee in the intersection of Estrella Dr. and Eureka Ave. 2. The improvements have been constructed in accordance with plans and specifications approved by City prior to construction and Developer has supplied City with reproducible as-built drawings regarding the facilities. Page 54 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 2 of 9 3. In addition to serving properties owned by Developer at the outset of construction, the facilities constructed will also serve the following described parcels of real property, and any subdivisions of such parcels, that did not contribute to the cost of the facilities construction, hereinafter referred to in aggregate as the "Assessment Area", which is determined at the sole discretion of the City, and which are identified and legally described in Exhibit C. 4. As the facilities have been construction in accordance with City Codes and Standards, applicant obtained all permits required by the City’s Codes and Standards. The work is physically complete and inspected by the City as required by the Public Works Director, or his designee. Developer agrees to convey such facilities to City for the consideration and benefits of City. Upon completion and project acceptance by council the City will thereafter own and operate said facilities subject to all of the laws and regulations, fees and assessments of City. 5. City and Developer agree that Developer’s contributions to the total project costs is shown in Exhibit B, which is allowed by statute to include costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the City’s contributions to the total project costs is or will be valued at $0, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 7. City and Developer agree that the Total Assessment is attributed to the Assessment Area is shown in Exhibit A. City and Developer agree that Developer is entitled to a potential total reimbursement, less any collection charges deducted by the City, of a maximum of total assessment as shown in Exhibit B. 8. The facilities subject to this Agreement are included within the City's comprehensive utility plan, and no additional comprehensive plan approval for the utility system improvements was required. 9. Execution of this Agreement is conditioned upon: Inspection and approval of the utility system improvements by the City; A. Full compliance with the Developer’s obligations under this Agreement and with the City’s rules and regulations with respect to the project described in Section 1. B. The Developer shall pay all of the City’s costs associated with processing this latecomer agreement including, but not limited to, engineering costs as set forth in Chapter 3.35 PMC, and the actual legal, recording, and administration costs. C. City verification and approval of all contracts and costs related to the utility system improvements; and Page 55 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 3 of 9 D. Within one hundred and twenty (120) days of the completion of the utility system improvements, Developer must submit the total actual cost of the utility system improvements to the City. 10. Developer agreements associated with utility system improvements shall be valid for a period not to exceed 20 years from the effective date of the agreement. While a developer agreement is valid, any person, firm or corporation now or hereafter owning benefitted properties described below, or segregated parcels thereof, desiring to connect to the described facilities, shall first pay their pro-rata share of the total cost of the facilities (“Total Assessment”). For this project, the Total Assessment is shown in Exhibit B. The individual Assessment associated with each parcel of benefited property described in this Agreement shall be charged to the property owner as shown in Exhibit B. 11. No person, firm or corporation shall be granted a permit or be authorized by City to connect to or use the referenced facilities during the period of time prescribed in Paragraph 10 above without first paying to City, in addition to any and all other costs, assessments and charges made and assessed for such tap or use, the amount required by the provisions of this contract. 12. The City shall deduct from all assessment reimbursement payments it collects; an amount (collection charge) as designated in Pasco Municipal Code (“PMC”) 3.35.180 to cover its administrative collection costs. After deduction of the collection charge, each reimbursement assessment payment will be disbursed to the Developer according to the terms of this Agreement. Any amounts so collected during the time period in Paragraph 10 above by City and due to Developer, shall be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in accordance with this Agreement. 13. Developer agrees to indemnify, defend and hold the City harmless from any action, claim or proceeding brought or maintained by any property owner challenging the validity or enforceability of this Agreement. In turn, the City agrees to cooperate with the Developer in the course of any such claim, proceeding or action to provide reasonable and lawful access to City records and witnesses. 14. Any funds collected by City and payable to Developer in accordance with the terms of this contract shall be remitted to Developer at the following address: Broetje Orchards LLC 3713 E A Street Pasco, WA. 99301 15. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall provide to the City in writing every two (2) years from the date this Agreement was executed, information regarding the current contact name, address, and telephone number of the Page 56 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 4 of 9 person, company or partnership that originally entered into the Agreement. If the Developer fails to comply with the notification requirements within sixty (60) days of the specified time, then City may collect any reimbursement funds owed to the Developer under this Agreement, and such funds shall be deposited into the capital expenditure account of the City’s utility or street fund. 16. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City (issuance of Warranty Letter), any work is found to be defective, Developer shall promptly and without cost to City, either correct such defective work or, if it has been rejected by City, remove and replace it with non-defective work. If Developer does not promptly comply with the terms of such instructions, City may have the defective work corrected or the rejected work removed and replaced and all direct and indirect costs of such removal and replacement, including compensation for professional services, shall be withheld from the reimbursement assessment payments that are due to Developer. 17. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum as shown in Exhibit B of this Agreement and remitted such amount (less any collection charges) to Developer, that City shall remit to Developer no further payments under this contract. 18. Developer hereunder is an independent contractor and is not an agent or employee of City. 19. The contract must be recorded in the appropriate county auditor's office within 30 days of its final execution. 20. In the event of a dispute between the parties regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator. The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with the substantially prevailing party being awarded its reasonable attorney fees and costs against the other. Page 57 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 5 of 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO, WASHINGTON Herald L. Stewart II – City Manager DEVELOPER – BROETJE ORCHARDS LLC Ralph Broetje, Co-Founder ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: City Attorney Page 58 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 6 of 9 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Harold L. Stewart II, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Ralph Broetje for Broetje Orchards LLC, to be known to be the individual described in and who executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of _____________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ Page 59 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 7 of 9 EXHIBIT A Page 60 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 8 of 9 PE R M I T # P a r c e l Fr o n t a g e [ F T ] Al l o c a t i o n o f C o s t [% ] = [ ( I n d i v i d u a l Pa r c e l F r o n t a g e [F T ] ) / ( T o t a l P a r c e l Fr o n t a g e [ F T ] ) ] Al l o c a t i o n o f C o s t [ $ ] = ( A l l o c a t i o n o f C o s t [% ] ) * ( T o t a l E s t i m a t e ) 11 3 - 8 8 1 - 0 2 4 BR O E T J E O R C H A R D S , L L C ( D E V E L O P E R ) N/ A 10 9 . 8 1 9. 8 4 % 7, 1 5 8 . 5 6 $ 11 3 - 8 8 2 - 0 4 2 JU B I L E E F O U N D A T I O N ( D E V E L O P E R ) N/ A 29 7 . 9 0 26 . 6 9 % 19 , 4 2 0 . 2 3 $ 11 3 - 8 8 2 - 0 9 6 JO S E A L M A R A Z G O N Z A L E Z LC 2 4 - 0 0 5 0 21 9 . 5 6 19 . 6 7 % 14 , 3 1 3 . 2 1 $ 11 3 - 8 8 2 - 1 2 1 EL P I D I O & M A R I A G A R C I A LC 2 4 - 0 0 5 1 35 4 . 7 5 31 . 7 8 % 23 , 1 2 6 . 3 1 $ 11 3 - 8 8 2 - 1 1 2 EU S T O L I A G O N Z A L E Z LC 2 4 - 0 0 5 2 13 4 . 1 1 12 . 0 2 % 8, 7 4 2 . 6 9 $ TO T A L S : 11 1 6 . 1 3 10 0 . 0 0 % 46 , 1 8 2 . 2 1 $ 46 , 1 8 2 . 2 1 $ 76 1 L F O F 8 " W A T E R M A I N BR O E T J E - H E L E N A # 1 EXHIBIT B AG R E E M E N T N O . AG R M T 2 0 2 4 - 0 1 3 Be n e f i t A r e a AS S E S S M E N T A M O U N T : Pa r c e l # , O w n e r Im p r o v e m e n t To t a l F r o n t a g e De v e l o p e r ' s T o t a l C o s t o f I m p r o v e m e n t 11 1 6 . 1 2 F r o n t a g e F e e t $7 2 , 7 6 1 . 0 0 DE V E L O P E R A R E A AS S E S S M E N T A R E A Page 61 of 325 Broetje Orchards LLC Developer Services Agreement Version 08.12.2025 Page 9 of 9 EXHIBIT C BENEFITTING AREA Developer Area 113-881-024 WASHINGTON ADD ALL BLK 5 TOGETHER WITH VACATED STREETS AND ALLEYS PER ORD 4646 113-882-042 ALL OF BLOCKS 11 & 12 WASHINGTON ADDITION TOGETHER WITH VACATED STREETS AND ALLEYS ADJ PER ORD 4646-1973182 Assessment Area 113-882-096 WASHINGTON ADD LOTS 25 TO 32, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-121 WASHINGTON LOTS 17 TO 24, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 113-882-112 WASHINGTON LOTS 9 THRU 16, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 Page 62 of 325 Resolution – Helena 2 Street DRA (Latecomer) - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A STREET SYSTEM DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH JUBILEE FOUNDATION FOR THE CONSTRUCTION OF STREET IMPROVEMENTS FOR HELENA 2, A RESIDENTIAL SUBDIVISION. WHEREAS, RCW 35.72 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter developer reimbursement agreements when the developer, as a condition of development, pays the costs of necessary infrastructure improvements; and WHEREAS, Jubilee Foundation has submitted a complete and accurate application for a street system developer reimbursement agreement; and WHEREAS, the City shall also provide notice of its preliminary assessment reimbursement area (those to repay the latecomer debt) to provide the property owners within the preliminary assessment area the opportunity to request the matter be submitted to a public hearing, within 20 days of date of mailing of the notice, before Council action; and WHEREAS, the City mailed notices of the preliminary assessment and reimbursement to the property owners within the preliminary reimbursement area on October 29, 2024 and did not receive in writing a request for a hearing before council; and WHEREAS, street system improvements include infrastructure projects related to City transportation network which is required to be constructed as a prerequisite of continued development; and WHEREAS, street developer reimbursement agreements shall meet the development criteria as detailed in the PMC Subsection 14.25.030(2)(b); and WHEREAS, Jubilee Foundation agrees to payment of project costs, including legal and administrative costs, as set forth in the Developer Reimbursement Agreement, attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the developer reimbursement agreement for street system improvements, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager be authorized to make minor substantive changes to the developer reimbursement agreement as needed. Page 63 of 325 Resolution – Helena 2 Street DRA (Latecomer) - 2 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 January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorneys Page 64 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 1 of 9 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Avenue Pasco, WA 99301 Developers Tax Parcel No.: Parcel#113-883-022 AGRMT#2024-019st Legal Description: WASHINGTON ADD ALL BLK 7 TOG WITH VACATED STREETS AND ALLEYS ADJ PER ORD#3996 CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of___________, 2026, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as “City”, and Jubilee Foundation, their successors and assigns, hereinafter referred to as “Developer”; and WHEREAS, RCW Chapter 35.72 and PMC 14.25 authorize contracts between a municipality and the owners of real estate within the municipality’s corporate limits or within ten (10) miles of the municipality’s corporate limits, who construct Street facilities to serve their own properties and other properties, whereby such owners and municipalities may be reimbursed by the owners of other real property who did not contribute to the original cost of the construction of the facilities, but who later desire to connect their properties to said facilities. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Developer has constructed the following described extension of City’s facilities: The installation of approximately 2,511 square feet of asphalt commencing at the intersection of Estrella Dr. and Eureka Ave. heading north approximately 240 feet through Eureka Ave. ending approximately at the North property line of parcel 113-882-112. 2. The improvements have been constructed in accordance with plans and specifications approved by City prior to construction and Developer has supplied City with reproducible as-built drawings regarding the facilities. 3. In addition to serving properties owned by Developer at the outset of construction, the facilities constructed will also serve the following described parcels of real property, and any subdivisions of such parcels, that did not contribute to the cost of the facilities construction, hereinafter referred to in aggregate as the "Assessment Area", which is Page 65 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 2 of 9 determined at the sole discretion of the City, and which are identified and legally described in Exhibit C. 4. As the facilities have been construction in accordance with City Codes and Standards, applicant obtained all permits required by the City’s Codes and Standards. The work is physically complete and inspected by the City as required by the Public Works Director, or his designee. Developer agrees to convey such facilities to City for the consideration and benefits of City. Upon completion and project acceptance by council the City will thereafter own and operate said facilities subject to all of the laws and regulations, fees and assessments of City. 5. City and Developer agree that Developer’s contributions to the total project costs is shown in Exhibit B, which is allowed by statute to include costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the City’s contributions to the total project costs is or will be valued at $0, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 7. City and Developer agree that the Total Assessment is attributed to the Assessment Area is shown in Exhibit A. City and Developer agree that Developer is entitled to a potential total reimbursement, less any collection charges deducted by the City, of a maximum of total assessment as shown in Exhibit B. 8. The facilities subject to this Agreement are included within the City's comprehensive street plan, and no additional comprehensive plan approval for the street system improvements was required. 9. Execution of this Agreement is conditioned upon: Inspection and approval of the street system improvements by the City; A. Full compliance with the Developer’s obligations under this Agreement and with the City’s rules and regulations with respect to the project described in Section 1. B. The Developer shall pay all of the City’s costs associated with processing this latecomer agreement including, but not limited to, engineering costs as set forth in Chapter 3.35 PMC, and the actual legal, recording, and administration costs. C. City verification and approval of all contracts and costs related to the street system improvements; and D. Within one hundred and twenty (120) days of the completion of the street system improvements, Developer must submit the total actual cost of the street system improvements to the City. Page 66 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 3 of 9 10. Developer agreements associated with street system improvements shall be valid for a period not to exceed 15 years from the effective date of the agreement. While a developer agreement is valid, any person, firm or corporation now or hereafter owning benefitted properties described below, or segregated parcels thereof, desiring to connect to the described facilities, shall first pay their pro-rata share of the total cost of the facilities (“Total Assessment”). For this project, the Total Assessment is shown in Exhibit B. The individual Assessment associated with each parcel of benefited property described in this Agreement shall be charged to the property owner as shown in Exhibit B 11. No person, firm or corporation shall be granted a permit or be authorized by City to connect to or use the referenced facilities during the period of time prescribed in Paragraph 10 above without first paying to City, in addition to any and all other costs, assessments and charges made and assessed for such tap or use, the amount required by the provisions of this contract. 12. The City shall deduct from all assessment reimbursement payments it collects; an amount (collection charge) as designated in Pasco Municipal Code (“PMC”) 3.35.180 to cover its administrative collection costs. After deduction of the collection charge, each reimbursement assessment payment will be disbursed to the Developer according to the terms of this Agreement. Any amounts so collected during the time period in Paragraph 10 above by City and due to Developer, shall be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in accordance with this Agreement. 13. Developer agrees to indemnify, defend and hold the City harmless from any action, claim or proceeding brought or maintained by any property owner challenging the validity or enforceability of this Agreement. In turn, the City agrees to cooperate with the Developer in the course of any such claim, proceeding or action to provide reasonable and lawful access to City records and witnesses. 14. Any funds collected by City and payable to Developer in accordance with the terms of this contract shall be remitted to Developer at the following address: Jubilee Foundation 3713 E A Street Pasco, WA. 99301 15. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall provide to the City in writing every two (2) years from the date this Agreement was executed, information regarding the current contact name, address, and telephone number of the person, company or partnership that originally entered into the Agreement. If the Developer fails to comply with the notification requirements within sixty (60) days of the specified time, then City may collect any reimbursement funds owed to the Developer under this Agreement, and such funds shall be deposited into the capital expenditure account of the City’s street fund. Page 67 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 4 of 9 16. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City (issuance of Warranty Letter), any work is found to be defective, Developer shall promptly and without cost to City, either correct such defective work or, if it has been rejected by City, remove and replace it with non-defective work. If Developer does not promptly comply with the terms of such instructions, City may have the defective work corrected or the rejected work removed and replaced and all direct and indirect costs of such removal and replacement, including compensation for professional services, shall be withheld from the reimbursement assessment payments that are due to Developer. 17. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum as shown in Exhibit B of this Agreement and remitted such amount (less any collection charges) to Developer, that City shall remit to Developer no further payments under this contract. 18. Developer hereunder is an independent contractor and is not an agent or employee of City. 19. The contract must be recorded in the appropriate county auditor's office within 30 days of its final execution. 20. In the event of a dispute between the parties regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator. The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with the substantially prevailing party being awarded its reasonable attorney fees and costs against the other. Page 68 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 5 of 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO, WASHINGTON Herald L. Stewart II – City Manager DEVELOPER – JUBILEE FOUNDATION, LLC Ralph Broetje, Co-Founder ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: City Attorney Page 69 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 6 of 9 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Harold L. Stewart II, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Ralph Broetje for Jubilee Foundation LLC, to be known to be the individual described in and who executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of _____________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ Page 70 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 7 of 9 EXHIBIT A Page 71 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 8 of 9 EXHIBIT C PE R M I T # AR E A O F AS P H A L T ( S F ) Al l o c a t i o n o f C o s t [% ] = [ ( I n d i v i d u a l Pa r c e l F r o n t a g e [F T ] ) / ( T o t a l P a r c e l Fr o n t a g e [ F T ] ) ] Al l o c a t i o n o f C o s t [ $ ] = ( A l l o c a t i o n o f C o s t [% ] ) * ( T o t a l E s t i m a t e ) 11 3 - 8 8 3 - 0 2 2 BR O E T J E O R C H A R D S , L L C ( D E V E L O P E R ) N/ A 25 1 1 . 0 0 50 . 0 0 % 29 , 7 4 0 . 6 3 $ 11 3 - 8 8 2 - 1 1 2 EU S T O L I A G O N Z A L E Z LC 2 4 - 0 0 6 2 25 1 1 . 0 0 50 . 0 0 % 29 , 7 4 0 . 6 3 $ TO T A L S : 50 2 2 . 0 0 10 0 . 0 0 % 29 , 7 4 0 . 6 3 $ 29 , 7 4 0 . 6 3 $ AS S E S S M E N T A M O U N T : ST R E E T BR O E T J E - H E L E N A # 2 EXHIBIT B AG R E E M E N T N O . AG R M T 2 0 2 4 - 0 1 9 Im p r o v e m e n t TO T A L A R E A O F A S P H A L T 25 1 1 S F De v e l o p e r ' s T o t a l C o s t o f I m p r o v e m e n t $5 9 , 4 8 1 . 2 5 Be n e f i t A r e a Pa r c e l # , O w n e r DE V E L O P E R A R E A AS S E S S M E N T A R E A Page 72 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 9 of 9 BENEFITTING AREA Developer Area 113-883-022 WASHINGTON ADD ALL BLK 7 TOG WITH VACATED STREETS AND ALLEYS ADJ PER ORD#3996 Assessment Area 113-882-112 WASHINGTON LOTS 9 THRU 16, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 Page 73 of 325 Resolution – Helena 2 Water DRA (Latecomer) - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING A UTILITY DEVELOPER REIMBURSEMENT (LATECOMER) AGREEMENT WITH JUBILEE FOUNDATION FOR THE CONSTRUCTION OF WATER UTILITY IMPROVEMENTS FOR HELENA 2, A RESIDENTIAL SUBDIVISION. WHEREAS, RCW 35.91 and Section 14.25 of the Pasco Municipal Code (PMC) provides a statutory framework for developers to enter developer reimbursement agreements when the developer, as a condition of development, pays the costs of necessary infrastructure improvements; and WHEREAS, Jubilee Foundation has submitted a complete and accurate application for a street system developer reimbursement agreement; and WHEREAS, the City shall also provide notice of its preliminary assessment reimbursement area (those to repay the latecomer debt) to provide the property owners within the preliminary assessment area the opportunity to request the matter be submitted to a public hearing, within 20 days of date of mailing of the notice, before Council action; and WHEREAS, the City mailed notices of the preliminary assessment and reimbursement to the property owners within the preliminary reimbursement area on October 29, 2024, and did not receive in writing a request for a hearing before council; and WHEREAS, utility improvements include infrastructure projects related to City water, sewer, and storm sewer which is required to be constructed as a prerequisite of continued development; and WHEREAS, utility developer reimbursement agreements shall meet the development criteria as detailed in the PMC Subsection 14.25.030(3)(b); and WHEREAS, Jubilee Foundation agrees to payment of project costs, including legal and administrative costs, as set forth in the Developer Reimbursement Agreement, attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager is authorized to execute the developer reimbursement agreement for utility system improvements, a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager be authorized to make minor substantive changes to the developer reimbursement agreement as needed. Page 74 of 325 Resolution – Helena 2 Water DRA (Latecomer) - 2 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 January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 75 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 1 of 9 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Avenue Pasco, WA 99301 Developers Tax Parcel No.: Parcel# 113-883-022 AGRMT2024-018w Legal Description: WASHINGTON ADD ALL BLK 7 TOG WITH VACATED STREETS AND ALLEYS ADJ PER ORD#3996 CITY OF PASCO DEVELOPER REIMBURSEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of ______________, 2026, by and between the City of Pasco, a Municipal Corporation of the State of Washington, hereinafter referred to as “City”, and Jubilee Foundation, their successors and assigns, hereinafter referred to as “Developer”; and WHEREAS, RCW Chapter 35.91 and PMC 14.25 authorize contracts between a municipality and the owners of real estate within the municipality’s corporate limits or within ten (10) miles of the municipality’s corporate limits, who construct Utility facilities to serve their own properties and other properties, whereby such owners and municipalities may be reimbursed by the owners of other real property who did not contribute to the original cost of the construction of the facilities, but who later desire to connect their properties to said facilities. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Developer has constructed the following described extension of City’s facilities: The installation of 455 linear feet of 8” ductile iron pipe, including all appurtenances, commencing at a tee connection in the intersection of Helena St. and Eureka Ave thence running south through Eureka Ave. approximately 455 feet connecting to a tee connection in the intersection of Estrella Drive and Eureka Ave. 2. The improvements have been constructed in accordance with plans and specifications approved by City prior to construction and Developer has supplied City with reproducible as-built drawings regarding the facilities. 3. In addition to serving properties owned by Developer at the outset of construction, the facilities constructed will also serve the following described parcels of real property, and any subdivisions of such parcels, that did not contribute to the cost of the facilities Page 76 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 2 of 9 construction, hereinafter referred to in aggregate as the "Assessment Area", which is determined at the sole discretion of the City, and which are identified and legally described in Exhibit C. 4. As the facilities have been construction in accordance with City Codes and Standards, applicant obtained all permits required by the City’s Codes and Standards. The work is physically complete and inspected by the City as required by the Public Works Director, or his designee. Developer agrees to convey such facilities to City for the consideration and benefits of City. Upon completion project acceptance by council the City will thereafter own and operate said facilities subject to all of the laws and regulations, fees and assessments of City. 5. City and Developer agree that Developer’s contributions to the total project costs is shown in Exhibit B, which is allowed by statute to include costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 6. City and Developer agree that the City’s contributions to the total project costs is or will be valued at $0, which includes costs for the design, construction engineering, inspection, construction, administrative, legal and other costs attributable to the project. 7. City and Developer agree that the Total Assessment is attributed to the Assessment Area is shown in Exhibit A. City and Developer agree that Developer is entitled to a potential total reimbursement, less any collection charges deducted by the City, of a maximum of total assessment as shown in Exhibit B. 8. The facilities subject to this Agreement are included within the City's comprehensive utility plan, and no additional comprehensive plan approval for the utility system improvements was required. 9. Execution of this Agreement is conditioned upon: Inspection and approval of the utility system improvements by the City; A. Full compliance with the Developer’s obligations under this Agreement and with the City’s rules and regulations with respect to the project described in Section 1. B. The Developer shall pay all of the City’s costs associated with processing this latecomer agreement including, but not limited to, engineering costs as set forth in Chapter 3.35 PMC, and the actual legal, recording, and administration costs. C. City verification and approval of all contracts and costs related to the utility system improvements; and Page 77 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 3 of 9 D. Within one hundred and twenty (120) days of the completion of the utility system improvements, Developer must submit the total actual cost of the utility system improvements to the City. 10. Developer agreements associated with utility system improvements shall be valid for a period not to exceed 20 years from the effective date of the agreement. While a developer agreement is valid, any person, firm or corporation now or hereafter owning benefitted properties described below, or segregated parcels thereof, desiring to connect to the described facilities, shall first pay their pro-rata share of the total cost of the facilities (“Total Assessment”). For this project, the Total Assessment is shown in Exhibit B. The individual Assessment associated with each parcel of benefited property described in this Agreement shall be charged to the property owner as shown in Exhibit B. 11. No person, firm or corporation shall be granted a permit or be authorized by City to connect to or use the referenced facilities during the period of time prescribed in Paragraph 10 above without first paying to City, in addition to any and all other costs, assessments and charges made and assessed for such tap or use, the amount required by the provisions of this contract. 12. The City shall deduct from all assessment reimbursement payments it collects; an amount (collection charge) as designated in Pasco Municipal Code (“PMC”) 3.35.180 to cover its administrative collection costs. After deduction of the collection charge, each reimbursement assessment payment will be disbursed to the Developer according to the terms of this Agreement. Any amounts so collected during the time period in Paragraph 10 above by City and due to Developer, shall be remitted to Developer or assigns within sixty (60) days of the receipt thereof, in accordance with this Agreement. 13. Developer agrees to indemnify, defend and hold the City harmless from any action, claim or proceeding brought or maintained by any property owner challenging the validity or enforceability of this Agreement. In turn, the City agrees to cooperate with the Developer in the course of any such claim, proceeding or action to provide reasonable and lawful access to City records and witnesses. 14. Any funds collected by City and payable to Developer in accordance with the terms of this contract shall be remitted to Developer at the following address: Jubilee Foundation 3713 E A Street Pasco, WA. 99301 15. In accordance with Pasco Municipal Code Section 14.25.60(2), Developer shall provide to the City in writing every two (2) years from the date this Agreement was executed, information regarding the current contact name, address, and telephone number of the Page 78 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 4 of 9 person, company or partnership that originally entered into the Agreement. If the Developer fails to comply with the notification requirements within sixty (60) days of the specified time, then City may collect any reimbursement funds owed to the Developer under this Agreement, and such funds shall be deposited into the capital expenditure account of the City’s utility or street fund. 16. If prior to the expiration of one (1) year after the date of conveyance of the facilities by Developer to City (issuance of Warranty Letter), any work is found to be defective, Developer shall promptly and without cost to City, either correct such defective work or, if it has been rejected by City, remove and replace it with non-defective work. If Developer does not promptly comply with the terms of such instructions, City may have the defective work corrected or the rejected work removed and replaced and all direct and indirect costs of such removal and replacement, including compensation for professional services, shall be withheld from the reimbursement assessment payments that are due to Developer. 17. Developer agrees that once the City has collected all amounts under this Agreement, up to a maximum as shown in Exhibit B of this Agreement and remitted such amount (less any collection charges) to Developer, that City shall remit to Developer no further payments under this contract. 18. Developer hereunder is an independent contractor and is not an agent or employee of City. 19. The contract must be recorded in the appropriate county auditor's office within 30 days of its final execution. 20. In the event of a dispute between the parties regarding the interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good faith effort to resolve the dispute by themselves or with the assistance of a mediator. The remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, the Mandatory Rules of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with the substantially prevailing party being awarded its reasonable attorney fees and costs against the other. Page 79 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 5 of 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PASCO, WASHINGTON Herald L. Stewart II – City Manager DEVELOPER – JUBILEE FOUNDATION, LLC Ralph Broetje, Co-Founder ATTEST: Debra C. Barham, City Clerk APPROVED AS TO FORM: City Attorney Page 80 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 6 of 9 STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Harold L. Stewart II, City Manager of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Ralph Broetje for Jubilee Foundation, LLC, to be known to be the individual described in and who executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of _____________, 2026. ________________________________________ (Seal) Notary Public in and for the State of Washington Print Name: _____________________________ Residing at ______________________________ My Commission Expires: ___________________ Page 81 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 7 of 9 EXHIBIT A Page 82 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 8 of 9 PE R M I T # P a r c e l Fr o n t a g e [ F T ] Al l o c a t i o n o f C o s t [% ] = [ ( I n d i v i d u a l Pa r c e l F r o n t a g e [F T ] ) / ( T o t a l P a r c e l Fr o n t a g e [ F T ] ) ] Al l o c a t i o n o f C o s t [ $ ] = ( A l l o c a t i o n o f C o s t [% ] ) * ( T o t a l E s t i m a t e ) 11 3 - 8 8 3 - 0 2 2 RA L P H E & C H E R Y L B R O E T J E ( D E V E L O P E R ) N/ A 47 0 . 8 7 51 . 5 9 % 22 , 3 9 6 . 6 6 $ 11 3 - 8 8 2 - 1 0 7 EM P I R E B R O S C O N S T R U C T I O N , L L C LC 2 4 - 0 0 5 8 77 . 9 3 8. 5 4 % 3, 4 1 7 . 0 3 $ 11 3 - 8 8 2 - 1 0 8 EM P I R E B R O S C O N S T R U C T I O N , L L C LC 2 4 - 0 0 5 9 71 . 8 4 7. 8 7 % 3, 4 1 7 . 0 3 $ 11 3 - 8 8 2 - 1 0 9 EM P I R E B R O S C O N S T R U C T I O N , L L C LC 2 4 - 0 0 6 0 71 . 1 6 7. 8 0 % 3, 3 8 4 . 6 8 $ 11 3 - 8 8 2 - 1 1 2 EU S T O L I A G O N Z A L E Z LC 2 4 - 0 0 6 1 22 0 . 9 2 24 . 2 0 % 10 , 5 0 7 . 9 3 $ TO T A L S : 91 2 . 7 2 10 0 . 0 0 % 20 , 7 2 6 . 6 7 $ 20 , 7 2 6 . 6 7 $ AS S E S S M E N T A M O U N T : 45 5 L F 8 " W A T E R M A I N BR O E T J E - H E L E N A # 2 EXHIBIT B AG R E E M E N T N O . AG R M T 2 0 2 4 - 0 1 8 Im p r o v e m e n t To t a l F r o n t a g e 91 2 . 7 2 F T De v e l o p e r ' s T o t a l C o s t o f I m p r o v e m e n t $4 3 , 4 1 3 . 0 0 Be n e f i t A r e a Pa r c e l # , O w n e r DE V E L O P E R A R E A AS S E S S M E N T A R E A Page 83 of 325 Jubilee Foundation Developer Services Agreement Version 08.12.2025 Page 9 of 9 EXHIBIT C BENEFITTING AREA Developer Area 113-883-022 WASHINGTON ADD ALL BLK 7 TOG WITH VACATED STREETS AND ALLEYS ADJ PER ORD#3996 Assessment Area 113-882-107 LOTS 1 THROUGH 3, BLOCK 6 WASHINGTON ADDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 54, RECORDS OF FRANKLIN COUNTY, WASHINGTON EXCEPT THE SOUTH 6.41 FEET OF LOT 3, TOGETHER WITH VACATED STEETS AND ALLEYS ORD-4648 AFN-1973865 (PARCEL A OF RS-1978329) 113-882-108 LOTS 4 THROUGH 6, BLOCK 6 WASHINGTON ADDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 54, RECORDS OF FRANKLIN COUNTY, WASHINGTON EXCEPT THE SOUTH 10.67 FEET OF LOT 6, TOGETHER WITH THE SOUTH 6.41 FEET OF LOT 3 BLOCK 6 AND VACATED STREETS AND ALLEYS ORD-4648 AFN-1973865 (PARCEL B OF RS-1978329) 113-882-109 LOTS 7 AND 8, BLOCK 6 WASHINGTON ADDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME B OF PLATS, PAGE 54, RECORDS OF FRANKLIN COUNTY, WASHINGTON TOGETHER WITH THE SOUTH 10.67 FEET OF LOT 6 BLOCK 6 AND VACTED STREETS AND ALLEYS ORD-4648 AFN-1973865 (PARCEL C OF RS- 1978329) 113-882-112 WASHINGTON LOTS 9 THRU 16, BLK 6 TOGETHER WITH VACATED STREETS AND ALLEYS ORD-4648 AFN1973865 Page 84 of 325 January 12, 2025 Pasco City Council Workshop Pa g e 8 5 o f 3 2 5 Developer Reimbursement Agreements –Helena 1&2- Water, Sewer, and Street Improvements TBD, 2025 Pasco City Council Pa g e 8 6 o f 3 2 5 General Information 3 Pa g e 8 7 o f 3 2 5 What is a Developer’s Reimbursement agreement? 4 • When a developer builds public street and utilities at their own expense that benefits other property owners, they can be reimbursed. •In order for the developer to collect the proportionate share from benefiting property owners, the developer must enter into a Developer’s Reimbursement Agreement with the City. •Benefitting property owners help repay the cost of the initial investment. •Street Developer Reimbursement Agreements are valid for 15 years. •Utility Developer Reimbursement Agreements are valid for 20 years. Pa g e 8 8 o f 3 2 5 Legal Framework 5 • RCW 35.72: State law allows reimbursement of cost for street improvements. •RCW 35.91:State law allows reimbursement of cost for utility improvements. • PMC 14.25: Pasco’s local code that follows state law. • These rules ensure that costs are shared fairly among those who benefit. Pa g e 8 9 o f 3 2 5 Helena 1&2-Water, Sewer, and Street -Developer Reimbursement Agreements 6 Pa g e 9 0 o f 3 2 5 Helena 1 Water, Sewer, and Street Improvement Project 7 • Broetje Orchards, LLC built water, sewer and street improvements for the Helena 1 Residential Subdivision. • These improvements support future development. •Improvements built: •761 feet of domestic water main, 4 control valves, and 2 fire hydrants. •751 feet of sanitary sewer main and 4 sanitary sewer manholes. •8,230 square feet of engineered road base and 8,230 square feet of hot mix asphalt roadway. Pa g e 9 1 o f 3 2 5 Helena 1 Water, Sewer, and Street Improvement Project 8 Pa g e 9 2 o f 3 2 5 Helena 2 Water and Street Improvement Project 9 • Jubilee Foundation built water and street improvements for the Helena 2 Residential Subdivision. • These improvements support future development. •Improvements built: •455 feet of domestic water main, 2 control valves, and 1 fire hydrants. •2,511 square feet of engineered road base and 2,511 square feet of hot mix asphalt roadway. Pa g e 9 3 o f 3 2 5 Helena 2 Water and Street Improvement Project 10 Pa g e 9 4 o f 3 2 5 Summary and Next Steps 11 Pa g e 9 5 o f 3 2 5 Summary and Next Steps 12 •Ralph and Cheryl Broetje (Broetje Orchards, LLC/Jubilee Foundation) invested in water, sewer, and street improvements to support future growth. • Developer Reimbursement Agreements allow developers to recover part of the costs from benefitting property owners. • Developer Reimbursement Agreements are executed by the City Manager. • Staff recommends approval of the Resolutions authorizing the City Manager to execute 5 Developer Reimbursement Agreements Pa g e 9 6 o f 3 2 5 Questions?Pa g e 9 7 o f 3 2 5 AGENDA REPORT FOR: City Council December 22, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Arman Rashid, Director Information Technology SUBJECT: Resolution No. 4699 – Project Acceptance for the Citywide Genetec Enterprise Access Control System (3 minute staff presenation) I. ATTACHMENT(S): Draft Resolution Presentation Resolution No. 4358 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4699, accepting work performed by Interwest Technologies Systems Inc., under contract for the Citywide Genetec Enterprise Access Control System project. III. FISCAL IMPACT: The project was completed within the approved budget and scope. No additional fiscal impact is anticipated. Page 98 of 325 IV. HISTORY AND FACTS BRIEF: Background: In 2023, the City Council approved Resolution No. 4358, authorizing the sole- source purchase and installation of the Genetec Unified Access Control and Video Security System from Interwest Technology Systems, Inc. Prior to this project, the City utilized several independent door access and video security systems installed at different times and managed separately. These legacy systems lacked integration capabilities, which led to inefficiencies such as maintaining multiple vendor contracts, managing separate user access databases, and inconsistent security policies across facilities. Through staff research and collaboration with local agencies, Genetec Inc. was identified as the preferred enterprise system capable of unifying the City’s access control and video management platforms under a single interface. Interwest Technology Systems, Inc., the only local authorized Genetec vendor, was selected to install and support the system. The Citywide Genetec project included the installation and configuration of access control panels, video servers, and supporting infrastructure at over a dozen City facilities, including:  City Hall  Main Police Station and Downtown Mini-Station  Fire Stations 81–83 and the Fire Training Garage  Parks Maintenance Shop  Administrative & Community Services Facilities Shop  Butterfield Water Treatment Plant, Wastewater Treatment Plant, and West Pasco Water Treatment Plant  Cemetery Office  Multimodal Station  First Avenue Center  Water Tower The unified system now integrates directly with the City’s enterprise network, allowing for centralized management, mobile monitoring, and enhanced data security. Final inspections were completed on October 29, 2025. Page 99 of 325 V. DISCUSSION: The Genetec Enterprise Access Control System Project has successfully achieved streamlining security, facility system of goals its improving management, and enhancing interoperability across departments. Key project outcomes include:  Improved security oversight: All City facilities now operate under a single security management platform, providing real-time monitoring and consistent user access control.  Operational efficiency: The integration with City computer accounts has reduced redundant administrative tasks for adding and removing user credentials.  Standardized hardware and software:Simplifies maintenance, training, and long-term scalability.  Future-ready foundation: The Genetec platform can support future enhancements such as automated license plate readers, expanded video with other regional interoperability and analytics, potential agencies using Genetec systems. The project was completed within the approved budget and scope. Minor installation adjustments were managed through the contract contingency and did not result in cost overruns. All installed components meet manufacturer specifications and City standards for network and physical security. the all that and operational fully is that verified have staff City system contractual deliverables have been met. Interwest Technology Systems, Inc. has completed all work to the City’s satisfaction. Staff recommends that the City Council formally accept the Genetec Enterprise Access Control System Project as complete and authorize staff to close the project and file the Notice of Completion. This item is scheduled for presentation at the January 12, 2026, City Council Workshop meeting. Next Steps:  File Notice of Completion with L&I  Release retainage withheld Page 100 of 325 Resolution – City-wide Genetec Project Acceptance- 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY INTERWEST TECHNOLOGIES SYSTEMS INC., UNDER CONTRACT FOR THE CITYWIDE GENETEC ENTERPRISE ACCESS CONTROL SYSTEM PROJECT. WHEREAS, the work performed by Interwest Technology Systems Inc., under contract for Project No. L327 has been examined by City of Pasco (City) staff and been found to be in apparent compliance with the applicable project specifications and drawings, and WHEREAS, it is City staff’s recommendation that the City of Pasco formally accept the contractor's work and the project as complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council concurs with City Staff’s recommendation and thereby accepts the work performed by Interwest Technology systems Inc., under contract for Project No. L327 as being completed in apparent conformance with the project specifications and drawings, and Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance, and Be It Further Resolved, that the final payment of retainage being withheld, pursuant to RCW 60.28.011, regulations and administrative process, shall be released upon apparent compliance with and satisfaction of applicable project specifications and verification thereof by Information Technology Department staff and Finance Director. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorneys Page 101 of 325 Pasco City Council January 12th, 2026 Workshop Pa g e 1 0 2 o f 3 2 5 Project Acceptance for Citywide Genetec Enterprise Access Control System 01/12/2026 Pasco City Council Pa g e 1 0 3 o f 3 2 5 Background •On July 17, 2023, City Council approved Resolution No. 4358 authorizing $460,285.95 for the purchase and installation of the Genetec Unified Security System from Interwest Technology Systems, Inc. as a sole-source provider. •The project’s purpose was to standardize the City’s access control and video security systems across multiple facilities, replacing outdated, stand-alone systems (OSSI) and improving overall security management efficiency. •Installation and configuration were completed at the following sites: o City Hall o Main Police Station and Downtown Mini-Station o Fire Stations 81–83 and Fire Training Garage o Parks Maintenance Shop o Public Works Shops and Water/Wastewater Treatment Plants o Multimodal Station, First Avenue Center, and Cemetery Office Pa g e 1 0 4 o f 3 2 5 Genetec Card Access Quoted Amount Paid CARD ACCESS SYSTEM - CITY HALL 37,689.00 37,689.00 CARD ACCESS SYSTEM - FIRE STATION 81 31,452.00 31,453.00 CARD ACCESS SYSTEM - FIRE STATION 82 25,144.00 25,144.00 CARD ACCESS SYSTEM - FIRE STATION 83 18,279.00 18,279.00 CARD ACCESS SYSTEM - FIRE TRAINING FACILITY 12,584.00 12,584.00 CARD ACCESS SYSTEM - MAINT BLDG FACILITY SHOP WTP CEMERTERY 38,524.00 38,524.00 CARD ACCESS SYSTEM - PASCO WATER TOWER 15,826.00 15,826.00 CARD ACCESS SYSTEM - WEST PASCO WATER TREATMENT PLANT 42,573.00 42,573.00 CARD ACCESS SYSTEM - WTP 38,291.00 38,291.00 CARD ACESS SYSTEM - PASCO FIRST AVE CENTER 4,576.00 4,576.00 CARD ACESS SYSTEM - POLICE STATION 98,985.00 98,985.00 Subtotal 363,923.00 363,924.00 Tax 32,389.15 Final Cost 396,312.15 Financial Impact *The completed project cost the City a total of $396,312.15, coming under the originally approved budget of 460,285.95, saving $63,973.80. Pa g e 1 0 5 o f 3 2 5 Pa g e 1 0 6 o f 3 2 5 Recommendation Staff recommends approval of Resolution______, accepting the work performed by Interwest Technology under contract for the Genetec Citywide Card Access System project via consented agenda at the 1/12/2026 Workshop Council Meeting. Next Steps: oRelease retainage withheldPa g e 1 0 7 o f 3 2 5 Questions?Pa g e 1 0 8 o f 3 2 5 Page 109 of 325 Page 110 of 325 Page 111 of 325 Page 112 of 325 Page 113 of 325 Page 114 of 325 Page 115 of 325 Page 116 of 325 Page 117 of 325 Page 118 of 325 Page 119 of 325 Page 120 of 325 Page 121 of 325 Page 122 of 325 Page 123 of 325 Page 124 of 325 Page 125 of 325 Page 126 of 325 Page 127 of 325 Page 128 of 325 Page 129 of 325 Page 130 of 325 Page 131 of 325 Page 132 of 325 Page 133 of 325 Page 134 of 325 Page 135 of 325 Page 136 of 325 Page 137 of 325 AGENDA REPORT FOR: City Council December 17, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Ken Roske, Police Chief Police Department SUBJECT: *Resolution No. 4700 - Service Agreement between Hanford Mission Integration Solutions (HIMS) and the City of Pasco for use of the Emergency Vehicle Operations Course (2 minutes staff presentation) I. ATTACHMENT(S): Proposed Resolution Services Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: City the 4700, No. authorizing approve to Resolution move I Manager to execute a Service Agreement between Hanford Mission Integration Solutions and the City of Pasco for use of the Emergency Vehicle Operations Course (EVOC). III. FISCAL IMPACT: There are no costs associated with the use of this facility. IV. HISTORY AND FACTS BRIEF: Background The Pasco Police Department utilized the Emergency Vehicle Operations Course (EVOC) at the Hanford Patrol Training Academy for approximately 10 years to provide required emergency vehicle operations training for sworn officers. This training supports safe and effective emergency response driving. Hanford Mission Integration Solutions, LLC (HMIS), manages the facility on behalf of the U.S. Department of Energy and provides access through a service scheduling, agreement that establishes terms related to safety requirements, and administrative coordination. Under the proposed agreement, Pasco officers will continue to use the EVOC facility from January 1, 2026, through December 31, 2026, at no direct cost, consistent with existing mutual Page 138 of 325 aid agreements. Impact (other than fiscal) Approval ensures continued access to a secure, certified training facility that supports officer safety, operational readiness, and public safety. V. DISCUSSION: Recommendation Staff recommends approval of the Service Agreement between Hanford Mission Integration Solutions and the City of Pasco for continued use of the Emergency Vehicle Operations Course. Constraints (Time or Other Considerations) Facility use is subject to Department of Energy scheduling priorities. Either party may terminate the agreement with fourteen (14) days written notice. Next Steps Upon approval, the City Manager will execute the agreement, and the Police Department will coordinate training schedules with Hanford Patrol Training Academy staff. Alternatives  Approve the Service Agreement as presented.  Request revisions and return the agreement to staff.  Decline approval and seek alternate EVOC training options. Page 139 of 325 Resolution – 2026 EVOC Srvs Agr - 1 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A SERVICE AGREEMENT BETWEEN HANFORD MISSION INTEGRATION SOLUTIONS AND THE CITY OF PASCO FOR USE OF THE EMERGENCY VEHICLE OPERATIONS COURSE (EVOC). WHEREAS, the City of Pasco, Washington (City) is committed to ensuring officers receive high-quality training, including critical emergency vehicle operations training that promotes officer and public safety; and WHEREAS, the City has utilized the Emergency Vehicle Operations Course (EVOC) at the Hanford Patrol Training Academy for more than a decade, demonstrating a successful and beneficial partnership between the City and Hanford Mission Integration Solutions (HMIS); and WHEREAS, the Service Agreement between the City and HMIS formalizes the continued use of the EVOC facility, providing necessary space, equipment, and instructional support for officer training; and WHEREAS, this longstanding partnership ensures that the police department maintains high standards in emergency vehicle operations, benefiting both officer safety and the safety of the public; and WHEREAS, the terms and conditions governing the use of the facility, safety protocols, scheduling, and liability are outlined in the Service Agreement, attached hereto as Exhibit A; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into the Service Agreement with Hanford Mission Integration Solutions for use of the Emergency Vehicle Operations Course. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the Service Agreement between Hanford Mission Integration Solutions and the City of Pasco; a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute said Agreement on behalf of the City of Pasco. Be It Further Resolved, that this Resolution shall take effect immediately. Page 140 of 325 Resolution – 2026 EVOC Srvs Agr - 2 PASSED by the City Council of the City of Pasco, Washington, on this ____ day of January, 2026. _____________________________ Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 141 of 325 Service Agreement FY26 CRF 6252 City of Pasco Police Department For the use of the Patrol Training Academy’s Emergency Vehicle Operations Course THIS AGREEMENT, effective 10/1/2025, is made by and between HANFORD MISSION INTEGRATION SOLUTIONS, LLC ("HMIS"), prime contractor to the UNITED STATES DEPARTMENT OF ENERGY, RICHLAND OPERATIONS OFFICE ("DOE"), a Department of the United States of America (Government) and City of Pasco Police Department (“Customer”). HMIS has been authorized by DOE to furnish to Customer certain equipment, services, and/or staff for training purposes (hereinafter referred to as the "Activity"), pursuant to the Hanford Mission Essential Services Contract Number 89303320DEM000031. SCHEDULING Customer understands and agrees (i) that the Activity is subject to the priority of the DOE on a not-to- interfere basis; and (ii) that DOE, through its facility administrator HMIS, has sole responsibility and discretion for allocating and scheduling use of the equipment, services, and/or staff needed for or involved in the Activity. SAFETY AND HEALTH HMIS/Patrol Training Academy (PTA) will provide a hazard analysis for the course as required for training on the PTA campus. All participants will comply with the requirements of the Training Activity Hazard Analysis. All participants (both HMIS and Customer) will comply with all DOE Hanford Site and HMIS/PTA safety and security protocols, including but not limited to any event specific safety plan associated with provided training activities. All participants will follow the local county and DOE requirements based on the Center for Disease Control for COVID-19. Requirements will be communicated prior to arrival based on infection rates in the county for the time of the training. SHIPMENT SAFETY Customer shall ensure that all shipments made to the Hanford site in performance of this Subcontract are packaged and loaded for safe handling and unloading. Deliveries to the Hanford site or HMIS- controlled facility may be refused and/or unloading work stopped by any DOE or HMIS employee for unsafe conditions or practices. Customer is responsible for ensuring that they and all lower-tier subcontractors have the appropriate DOT certificates, paperwork, and signage. HANFORD SITE DATA AND FACILITY ACCESS Both parties mutually agree that all applicable requirements will be met associated with data usage, transfer and facility access. This includes but is not limited to the adherence of each entity’s control regarding electronic data management. In addition, usage of personnel meeting the DOE definition of “Foreign National.” HMIS requires at least a fourteen (14) day notice to ensure additional DOE requirements are met should a Foreign National have access to DOE data, be involved with a Site visit, or is participating in a classroom training. At least seven (7) day notice is required in advance of other on-site visits and/or activities. CONTROLLED USE INFORMATION As contemplated by the description of services and associated documents, both parties agree that no information or data subject to DOE Order requirements relating to Official Use Only, UCNI, classified Page 142 of 325 information or otherwise restricted DOE information will be exchanged or otherwise referenced in the development of training materials. CONFIDENTIALITY OF DATA As contemplated by the description of services and associated documents, both parties agree that no information or data that is confidential, proprietary, or otherwise restricted is required to perform the services and training described. However, in the event such information is required for training development, both parties mutually agree it will not discuss Confidential or otherwise restricted data directly or indirectly, under any circumstances to any third party without the express written prior consent of the affected party. INSURANCE It is the policy of the U.S. Department of Energy and HMIS not to pay for insurance against loss, damage, or destruction of government property. Customer/Contractor shall not under any circumstances charge back insurance costs to Buyer/HMIS. WORKPLACE SUBSTANCE ABUSE PROGRAM HMIS is subject to 10 CFR 707, Workplace Substance Abuse Programs at DOE Sites, HMIS expects Customer/Contractor adhere to the requirements of the referenced order to the extent applicable to the services under this Agreement. PROPERTY The Government shall retain title to all government-furnished property. Title to government property shall not be affected by its incorporation nor shall Government property become a fixture or lose its identity as personal property by being attached to any real property. The contractor shall not be liable for loss of government property furnished or acquired under this contract except when one of the following applies: risk is covered by insurance; loss is the result of willful misconduct or lack of good faith on the part of contractor’s managerial personnel; and/or the DOE Contracting Officer has, in writing, revoked the government’s assumption of risk for loss AUTHORITY, ADMINISTRATION, AND TRANSFER It is understood and agreed that this Agreement is entered into by HMIS in its role as prime contractor to DOE and that (i) HMIS is authorized to and will administer this agreement for DOE; (ii) administration of this agreement may be assigned by a contractual agreement between DOE and HMIS which determines their role in the administration of training at this facility or its designee upon written notice to customer; and (iii) in case of such assignment and notice thereof to customer, HMIS shall have no further responsibility hereunder. LIABILITY AND INDEMNITY A. Neither the Government nor DOE and its agents, employees, or contractors (including HMIS) or other persons acting on their behalf, including officers, directors, officials, representatives, employees, staff, and subcontractors will be responsible for any personal injury or damage to or destruction of property of any kind whatsoever resulting from the furnishing of and use by Customer of equipment, material, and/or staff under this Agreement, unless directly resulting from the negligence of the Government, DOE, or agents or persons acting on their behalf, consistent with the Washington Comparative Fault Statute (R.C.W. 4.22 et seq.). Page 143 of 325 B. Neither the Government, nor DOE and its agents, employees, or contractors (including HMIS), or, and other persons acting on their behalf, including officers, directors, officials, representatives, employees, staff, and subcontractors will be responsible, irrespective of cause, for failure to furnish any equipment, material, and/or staff under this Agreement at any particular time or in any particular manner when the interests of the Government preempt any schedule. C. Customer shall give notice to HMIS as soon as practicable of any claim made against the Government, DOE, or their agents or other persons acting on their behalf and/or Customer and afford them the opportunity, to the extent allowed by applicable laws, rules, or regulations, to participate in and control their defense. Customer shall provide reasonable assistance and information to the Government, DOE, HMIS, and their agents and other persons acting on their behalf to support their defense. STATEMENT OF WORK The EVOC Training Center at Hanford Patrol Training Academy will provide City of Pasco Police Department access to the classrooms and props when scheduled. Training will cover the use of EVOC skills Pad, EVOC track, and EVOC classroom. COST ESTIMATE EVOC daily rate: $ 507.16 Building <Date> <Date> <Date> <Date> EVOC classroom _ _ EVOC track _ _ EVOC skills pad _ _ *For MOU Customers: There is no charge for the use of the EVOC per the DOE-RL-94-02, Hanford Emergency Management Plan, Memorandum of Understanding (MOU) for Mutual Law Enforcement Assistance agreement. PAYMENT Payments should be sent to the following address: Hanford Mission Integration Solutions Attn: Treasury H3-18 PO Box 943 Richland, WA 99352 Page 144 of 325 DESIGNATED REPRESENTATIVES AND NOTICES Prior to commencement of the services, each party shall designate a representative authorized to act on its behalf, shall advise the other party in writing of the name, address, and telephone number of such designated representative, and shall inform the other party of any subsequent change in such designation. All communications to Customer and HMIS relating to the contract shall be communicated through such designated representatives. If to Company: If to Customer/Consultant: Hanford Patrol Training Academy – HMIS P.O. Box 943 MSIN G5-50 Richland, WA 99354 Attention: Mick Thompson Attention: Email: m_j_mick_thompson@rl.gov E-mail: Telephone: 509-376-4686 Telephone: Either Party may change the name or address of the designated recipient of Notices by delivery of a Notice of such change as provided for in this Article. INSURANCE Both Parties acknowledge and agree that they shall procure at their own expense and maintain insurance policies and coverage reasonable, appropriate, and applicable to the services being delivered under this service agreement. Prior to commencement of work, the Parties shall exchange satisfactory evidence of insurance coverage, unless waived in writing. If such applicable insurance or materially changed with respect to the scope of the services described, the affected party must notify the other immediately and in writing. TERMINATION/CANCELLATION POLICY Either party may terminate this Agreement for any reason at any time by giving not less than 14 days prior written notice to the other party; provided, however, that DOE reserves the right to immediately terminate this Agreement without regard to the aforesaid written notice when termination of this Agreement is determined to be in the best interests of the Government. Termination shall be without prejudice to the rights of either party. Upon such termination, Customer shall pay to HMIS for all Services satisfactorily performed by HMIS as of the date of termination. Customer shall be responsible for any shipping and/or handling charges associated with return of Customer-owned equipment received at the PTA facility. APPLICABLE LAW AND VENUE In the event of any matter or dispute arising out of or related to a Contract, it is agreed between the Parties that such Contract shall be interpreted in accordance with the substantive and procedural laws (including statute of limitations provisions) of the State of Washington. Page 145 of 325 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date and year first written above. City of Pasco Hanford Mission Integration Solutions Organization Organization Harold Stewart Mick Thompson Name Name Signature Signature City Manager Patrol EVOC Program Manager Title Title Date Date 509-376-4686 m_j_mick_thompson@rl.gov Phone/Email Phone/Email City of Pasco 215 W. Sylvester Pasco, WA 99301 509-545-3421 Mailing Address Page 146 of 325 ATTACHMENT A: MISCELLANEOUS PROVISIONS STOP WORK RESPONSIBILITY – ON-SITE WORK A. Every Customer and Subcontractor employee has the responsibility and authority to stop work IMMEDIATELY, without fear of reprisal, when they are convinced a situation exists that places himself/herself, coworker(s), or the environment in danger or at risk per DOE-0343, "Stop Work." 1. Any employee who reasonably believes that his/her safety is in jeopardy, or who is convinced a situation exists that places themselves, their coworker(s), or the environment in danger, is expected to refuse work without fear of reprisal by management or coworkers, and is entitled to have the safety concern resolved prior to participating in the work. 2. Employees are expected to report any practice or condition they believe presents an unacceptable risk. Notification should be made to the affected worker(s) and then to the supervisor or his/her designee, at the location where the practice or condition exists. After notification, resolution of the issue resides with the responsible manager. 3. The BTR shall also be notified when a Stop Work affects the Subcontract staff and the performance of work. The direction to resume work will be made in writing from the BTR. B. The Subcontractor shall provide for the flow-down of appropriate requirements of this clause to lower-tier subcontractors performing work on-site at a DOE-owned or leased facility. Such Subcontracts shall provide for the right to stop work under the conditions described herein. Page 147 of 325 ATTACHMENT B: PROHIBITED ARTICLES Customer/Subcontractor’s employees shall not personally carry, or otherwise transport or transfer, certain items onto the Hanford Site or any DOE-owned or leased facility, or off the Site proper at which the Subcontractor is performing work under this Subcontract. A. The following items are prohibited articles anywhere on site or in site-associated facilities (to include vehicle parking areas and pedestrian walkways): 1. Pets and animals (guide dogs are permitted). 2. Weapons as defined in RCW 9.41.270. NOTE – Personal protective sprays, e.g., pepper spray, are prohibited in protected areas and material areas only. 3. Alcoholic beverages – Includes any intoxicating beverage, liquor or other product containing alcohol, including "near" and "non-alcoholic" beer and "energy drinks" which identify alcohol as an ingredient. 4. Controlled substances and drug paraphernalia (prescription drugs are permitted in the original container). 5. Explosives or incendiary devices (road flares are permitted). 6. Any article prohibited by law. 7. If Subcontractor, or any of its employees, needs to use a prohibited item to meet a requirement of this Subcontract, Subcontractor shall contact Buyer for guidance in acquiring the necessary prohibited/controlled article pass. 8. Subcontractor’s employees and their vehicles, packages, or other types of containers are subject to a search for prohibited articles at any time while performing work on the Hanford Site or in any DOE owned or leased facility located off the Site proper. Prohibited articles found in the possession/control of Subcontractor’s employees which are not listed on a valid prohibited/controlled article pass may be confiscated. Page 148 of 325 Statement of Work FY 2026 Law Enforcement EVOC Training at Hanford Patrol Training Academy (PTA) All Vehicles General All vehicles used at the EVOC shall be police or law enforcement vehicles; no private vehicles authorized. Any reference to vehicles means police vehicles. Deliverables Hanford Patrol Training Academy will: As requested by the PTA EVOC Program Manager (PM), in HFACTS complete and submit a Customer Requirements Form (CRF) to reserve the EVOC skills pad, track and trailer for the training dates agreed to by the PTA EVOC PM and the Law Enforcement Customer’s Point of Contact (LE POC). Prepare and submit required contracting documents (e.g., Service Agreement and a Cost Estimate) to the LE POC and others, if/as required. Give copies of any required documents to the LE POC for review and approval. Ensure paper copies of the aforementioned documents are maintained on file, including those that have been signed (approved) by the LE POC. The Hanford PTA will: Unless pre-approved by the Commandant, PTA, allows only one agency at a time to use the EVOC. Confirm the LE POC wants his/her department personnel trained to the PTA’s approved EVOC lesson plan 1 and not to a variation of same, e.g., one that has been modified, tweaked, revised or otherwise changed. Confirm the LE EVOC Instructors are certified for the type of vehicles the agency will bring to the training. Ensure only vehicles authorized for use on EVOC by Hanford PTA are used during the training event. Have the EVOC PM reserve the EVOC skills pad, track and trailer for the training dates agreed to by the PTA EVOC PM and the LE POC. Complete and submit/file the required HAMMER approval paperwork. Provide the LE Customer’s personnel access to the EVOC classroom and props as scheduled. Provide the initial PTA/EVOC facility training/safety briefing/orientation to EVOC LE POC before training commences. 1 All PTA lesson plans are required to be reviewed and approved by the Hanford Patrol Protective Force Safety Organization to ensure the training can be conducted in compliance with applicable hazard analysis (reference SAS-7321, Hazards Analysis Procedure) and PTA facility, training, safety and environmental requirements. Page 149 of 325 Provide certification and recertification of LE POC EVOC instructors (Certification is per the Washington State Criminal Justice Training Center Requirements for EVOC Instructors). Ensure training conducted per the PTA’s approved EVOC lesson plan. LE Customer POC will: Submit the EVOC training request to the PTA EVOC PM and confirm department personnel are to be trained to the PTA’s approved EVOC lesson plan and not to a variation of same, e.g., one that has been modified, tweaked, revised or otherwise changed. Upon receipt of required contracting documents (e.g., Contract Service Agreement), review and approve (sign/date) if acceptable then return them to the PTA EVOC PM. If not acceptable, work with the PTA EVOC PM and/or the HAMMER LE PM to resolve the issue(s). Ensure that department personnel who are to be trained complete the PTA/EVOC facility training/safety briefing/orientation before training commences. Ensure department personnel are trained in accordance with the PTA’s approved EVOC lesson plan. During the period of his/her department’s EVOC reservation, deny EVOC use to other external agencies unless prior approval is granted by the Commandant, Hanford Patrol Training Academy. Will ensure that their EVOC instructors recertify every two years or sooner as needed. Will ensure PTA approval for any vehicles not previously authorized for use at the EVOC. Contacts: HMIS Tech POC: Mick J. Thompson (509) 376-4686 - Office (509) 366-1431 - Cell m_j_mick_thompson@rl.gov Page 150 of 325 AGENDA REPORT FOR: City Council January 12, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: City Clerk Debra Barham Appreciation Day Proclamation (5 minutes) I. ATTACHMENT(S): Proclamation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Mayor Grimm will read the proclamation for "City Clerk Debra Barham Appreciation Day" scheduled for January 23, 2026 and present the proclamation to City Clerk Barham. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: The "City Clerk Debra Barham Appreciation Day" Proclamation will be read and presented to City Clerk Barham. Page 151 of 325 Proclamation “City Clerk Debra Barham Appreciation Day” January 23, 2026 WHEREAS, City Clerk Debra Barham has faithfully served the City of Pasco since 2019, providing exemplary service, professionalism, and dedication to the residents of Pasco; and WHEREAS, during her tenure, City Clerk Barham played a vital role in supporting the Pasco City Council, ensuring meetings were conducted efficiently, records were maintained accurately, and the legislative process was carried out with transparency and professionalism; and WHEREAS, City Clerk Barham has faithfully clerked 312 City Council meetings, demonstrating unwavering commitment, attention to detail, and institutional knowledge; and WHEREAS, she has officially signed 356 ordinances and 716 resolutions, helping formalize the legislative actions that have shaped the growth, policies, and future of the City of Pasco; and WHEREAS, City Clerk Barham has consistently upheld the highest standards of accuracy, accountability, and service, earning the respect and appreciation of City leadership, staff, and the community she served; and WHEREAS, her contributions have left a lasting impact on the City of Pasco, and her dedication to excellence has set a high standard for municipal service; and NOW, THEREFORE, I, Charles Grimm, Mayor of the City of Pasco, Washington, do hereby proclaim January 23, 2026 as “City Clerk Debra Barham Appreciation Day” and encourage all residents to join in extending our sincere gratitude and warmest wishes to City Clerk Barham as she enters a well-deserved retirement. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of Pasco, State of Washington, to be affixed this 20th day of January 2026. Charles Grimm, Mayor City of Pasco Page 152 of 325 AGENDA REPORT FOR: City Council December 18, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Haylie Matson, Director Community & Economic Development SUBJECT: Q Ordinance No. 4812 - Rocky Hills Management LP "Wilson Estates" Rezone from R-T to R-1 (Z2025-009) (5 minute staff presentation) I. ATTACHMENT(S): Ordinance Exhibit A Hearing Examiner Recommendation Exhibit B Exhibit C Public Comments II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: zoning the amending 4812, No. move adopt to I Ordinance classification of certain real property located north of Burns Road, west of Broadmoor east future of Road, and future of south Boulevard, Dent Dent/Fraser Road in Pasco, Franklin County, Washington, from R-T (Residential Transition) to R-1 (Low Density Residential) and, further, authorize publication by summary only. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: Background: In September 2020, the City adopted a Non-Project EIS for its Comprehensive Plan which 3, Alternative using Area Urban the expanded that Growth emphasized higher-density development through limited UGA expansion and increased infill and redevelopment. The subject site was outside the UGA prior to this action but was annexed into the City in May 2022 and later zoned R-T in February agricultural 2023. Historically, the property has been used for purposes since at least 1985. Page 153 of 325 On September 26, 2025, Big Sky North, LLC, with written authorization from Rocky Hills Management LP, submitted an application to rezone Parcel No. 115180030. Public notice was mailed on October 22, 2025, to property owners within 300 feet of the proposed site and published in the Herald on October 26, 2025. Following this notice, the proposal drew significant attention from neighboring properties, which provided verbal public comment at the hearing and in writing prior to the hearing. These comments are labeled “Exhibit C” and are provided below. On November 12, 2025, the Hearing Examiner conducted a public hearing to review the request to rezone the parcel from R-T to R-1, as illustrated on the proposed Subsection PMC accordance In with (Exhibit map zoning B). 25.210.060(2), the Hearing Examiner recommended approval of the rezone on November 26, 2025, finding it consistent with the Comprehensive Plan, and forwarded the recommendation to the City Council for final consideration. It is worth noting that on November 13, 2025, under Auditor File No. 2005941, the original 156-acre parcel was divided into two parcels through a north–south split. Parcel 1 (the southern parcel) is approximately 51.28 acres in size, and Parcel 2 (the northern parcel) is approximately 104.74 acres. Recent communication with the Franklin County Assessor’s Office indicates that the new parcels will not be formally created in the assessment records until after the new year. Should this occur prior to the anticipated City Council meeting on January 20, 2026, the Ordinance will be updated accordingly to reflect the current legal description and parcel numbers. Surrounding properties are zoned and developed as follows: North: R-T Residential Transition/Agricultural East: RR-5 Franklin County- (Rural Residential)/Single Family Homes South: Family Homes/Low (Suburban)/Single County- Franklin RS-20/R-1 Density Residential/Agricultural/Irrigation Pond West: RS-40 Franklin County- (RS-40)/Single Family Homes Impact (other than fiscal): The rezone application is non-project in nature and establishes a framework for future residential development consistent with the City’s long-range planning objectives. The proposed zoning aligns with the Comprehensive Plan and supports the future extension of City utilities where they are currently unavailable. Any future development will be subject to project-level review for compliance and potential mitigation. V. DISCUSSION: Page 154 of 325 Conclusion & Recommendation: Staff and the Hearing Examiner find that the requested rezoning is consistent with the Comprehensive Plan. The proposal supports orderly growth, aligns with long-term development objectives, and provides a framework for future residential development while ensuring that any future projects will be reviewed for compliance and potential mitigation. Accordingly, both Staff and the Hearing Examiner recommend that the City Council approve the requested rezones through the associated Ordinance. Constraints (Time or other considerations): While the PMC Title 25 Zoning does not specify a time frame for processing applications, Title 4, which is applicable to Title 25, provides that “the Director shall issue a notice of final decision on a project permit application within 120 days after notifying the applicant that the application is complete.” The applicant was issued a Notice of Complete Application on October 9, 2025. Although respectfully staff arrived, yet not has deadline statutory the recommends that the City Council proceed with a timely review and processing of the application to ensure orderly consideration and to serve the best interests of the community. Staff Analysis & Hearing Examiner Findings: Following the conclusion of an open record hearing on the properties rezone petition, the Hearing Examiner shall issue findings and conclusions based on the record, pursuant to PMC Subsection 25.210.060(1)(a) through (e), applying the initial review criteria set forth in PMC Section 25.210.030. The findings and conclusions are as follows: (a) The proposal is in accord with the goals and policies of the Comprehensive Plan The Comprehensive Plan designates the site as Low Density Residential. The requested zoning is consistent with this designation and supports policies promoting development, the future extension of City infrastructure, and balanced residential growth. (b) The effect of the proposal on the immediate vicinity will be materially detrimental The proposed zoning is compatible with the Comprehensive Plan. While existing surrounding development patterns differ from the minimum lot sizes allowed in the requested zone, the density remains within the range of 3 to 6 dwelling units per acre, consistent with city standards. Future development will be required to comply with City regulations for buffering, traffic, and setbacks, ensuring that potential impacts are minimized. (c) There is merit and value in the proposal for the community as a whole Applying zoning consistent with the Comprehensive Plan creates opportunities for housing development, supports the efficient extension of infrastructure, and Page 155 of 325 promotes balanced growth. The proposal advances the City’s long-term goals. (d) Conditions should be imposed in order to mitigate any significant adverse impacts from the proposal No conditions are necessary as part of this rezone request. The application, as well as any future development, will be subject to the applicable provisions of the Construction and Design Pasco Standards. City the and PMC of Subsequent project actions, including Preliminary Plat review, SEPA, and TIA evaluation, will assess potential significant adverse impacts. Accordingly, the imposition of conditions at this stage is not warranted. (e) A concomitant agreement should be entered into between the City and the petitioner, and, if so, the terms and condition of such an agreement A concomitant agreement is not necessary for this proposal. The requested rezoning complies with all applicable City standards and requirements without the need for additional terms or conditions beyond those already provided in the further PMC and adopted development regulations. Accordingly, no conditions or commitments are warranted through a concomitant agreement. Next Steps: If the Ordinance is adopted, the City Clerk’s Office will record it with the Franklin County Auditor, and staff will issue a Notice of Decision to all affected parties. Alternatives: In accordance with PMC Section 25.210.080, if the City Council determines by majority vote that further review is warranted, a closed record hearing is required, and at least 14 days’ notice shall be given prior to the hearing. At the conclusion of the hearing, the Council may approve the reclassification with or without modifications, enter into a concomitant agreement with the petitioner, or deny the reclassification. The Council may adopt the Hearing Examiner’s findings and conclusions or formulate alternative findings to support its decision to approve, modify, or deny the application. Page 156 of 325 Ordinance Rezone Z 2025-009 - 1 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington Attn: City Clerk 525 North 3rd Avenue Pasco, WA 99301 ____________________________________________________________________________ ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING THE ZONING CLASSIFICATION OF CERTAIN REAL PROPERTY LOCATED NORTH OF BURNS ROAD, WEST OF BROADMOOR BOULEVARD, SOUTH OF FUTURE DENT ROAD, AND EAST OF FUTURE DENT/FRASER ROAD IN PASCO, FRANKLIN COUNTY, WASHINGTON, FROM R-T (RESIDENTIAL TRANSITION) TO R-1 (LOW DENSITY RESIDENTIAL). WHEREAS, Big Sky North, LLC, the petitioner seeks to rezone Parcel No. 115180030, located north of Burns Road, west of Broadmoor Boulevard, south of future Dent Road, and east of future Dent/Fraser Road in, Pasco, Washington; and WHEREAS, a complete and adequate petition for change of zoning classification meeting the requirements of Pasco Municipal Code (PMC) Section 25.210.030 was received by the City of Pasco (City) and, after notice was issued under PMC Section 25.210.040, an open record hearing was conducted by the Pasco Hearing Examiner upon such petition on November 12, 2025; and WHEREAS, based upon substantial evidence and demonstration of the Petitioner that: (a) the proposal is in accord with the goals and policies of the adopted Comprehensive Plan; (b) the effect of the proposal on the immediate vicinity is not materially detrimental; (c) there is merit and value in the proposal for the community as a whole; (d) any impacts of the rezone application and anticipated development will be mitigated by the regulations and requirements of the Pasco Municipal Code and the City of Pasco Design and Constructions Standards; (e) a concomitant agreement is not required under these circumstances; and (f) the proposal is consistent with and satisfies all criteria in PMC Section 25.210.060; the Hearing Examiner has recommended to approve the rezone, which findings and recommendation are hereby adopted by the City Council, and the Hearing Examiner Report is hereby incorporated by reference as Exhibit A. Page 157 of 325 Ordinance Rezone Z 2025-009 - 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. That the Zoning Ordinance for the City of Pasco, Washington, and the Zoning Map, accompanying and being part of said Ordinance shall be and hereby is changed from R-T (Residential Transition) to R-1 (Low Density Residential) for the real property as shown in the Exhibit B attached hereto and described as follows: Short Plat 2009-16 Lot 2 Section 2. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this ordinance. Section 3. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Section 4. Effective Date. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington this ___ day of January, 2026. Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Published: _____________________________ Page 158 of 325 Exhibit "A" Page 159 of 325 Page 160 of 325 Page 161 of 325 Page 162 of 325 Page 163 of 325 Page 164 of 325 Page 165 of 325 "Exhibit B"Applicant(s):Big Sky North,LLC File #2 22025-009 a’ Item:Rocky Hills Management LP "Wilson Estates"Rezone R-T to R-l A ,SITE_' <1-270 530 1,100 1,600 2,10 M“ Q g CI:_:I Esri‘Mam Earh—sm 1’ ‘n,_J._1,_,a'gmwvHM"County ‘ ‘m ”I Assessor and G15FeetE9» Pa g e 1 6 6 o f 3 2 5 PUBLIC HEARING Z2025-009 COMMENTS FORWARDED 11/12/25 NAME EMAIL RECEIVED EMAIL FORWARDED COMMENT ADRIAN & JOANNE PEREZ 11/12/2025 11/12/2025 OPPOSED KC GARZA 11/12/2025 11/12/2025 OPPOSED OMAR GARZA 11/3/2025; 11/10/25; 11/12/25 11/12/2025 OPPOSED STEPHEN & CONNIE COALE 11/9/2025 11/12/2025 OPPOSED CARLOS TOSCANO 11/9/2025 11/12/2025 OPPOSED TIFFANY ALVISO 11/9/2025 11/12/2025 OPPOSED JEFF PITTMAN 11/10/2025 11/12/2025 OPPOSED RAY & JESSICA BERNSEN 11/10/2025 11/12/2025 OPPOSED ZENADO & MEAGAN MARTINEZ 11/10/2025 11/12/2025 OPPOSED STEPHANIE CORIA 11/10/2025 11/12/2025 OPPOSED DORA MARTINEZ 11/10/2025 11/12/2025 OPPOSED ANDREW CORIA 11/10/2025 11/12/2025 OPPOSED ZENAIDO MARTINEZ JR 11/10/2025 11/12/2025 OPPOSED STEPHEN MARTINEZ 11/10/2025 11/12/2025 OPPOSED RAYNALDO GARZA 11/10/2025 11/12/2025 OPPOSED DAVID BARBER 11/11/2025; 11/12/25 11/12/2025 OPPOSED AARON FABRE 11/12/2025 11/12/2025 OPPOSED BRETT BROWN 11/11/2025 11/12/2025 OPPOSED BRAD MASON 11/11/2025 11/12/2025 OPPOSED ANGELINE PENA 11/11/2025 11/12/2025 OPPOSED SANDRA SEGER 11/11/2025 11/12/2025 OPPOSED STEPHEN & BELINDA MATTHEWS 11/11/2025 11/12/2025 OPPOSED TERRY & BARBARA FOWLER 11/11/2025 11/12/2025 OPPOSED RANDY HULLINGER 11/11/2025 11/12/2025 OPPOSED HARRY & SHERYL MARCH 11/5/2025 11/12/2025 OPPOSED WHITNEY HOTTELL & BRAD BACHUS 10/29/2025 OPPOSED Exhibit "C" Page 167 of 325 SEPA comment for SEPA2025-030 Wilson Estates Subdivision • Subject: SEPA comments for Wilson Estates Subdivision (SEPA2025-030, PP2025- 004, Z2025-009) • To: City of Pasco Community & Economic Development Department attn. Ivan Barragan • From: Aaron Fabre, owner of 11413 Easton Dr, Pasco, WA 99301 o Aaroboy21@hotmail.com o (725) 777-8021 • Date: October 28th 2025 Thank you for the opportunity to comment on and voice my concerns on the SEPA determination for the Wilson Estates Subdivision. The city of Pasco’s Comprehensive Plan is to reflect the community’s vision of the future, and the city of Pasco’s Planning Department vision is to help create a sustainable, functional, and aesthetically pleasing community through thoughtful planning. I do not believe the proposed subdivision reflects the vision of the city of Pasco and I oppose the current plans. The proposed Wilson Estates Subdivision brings numerous concerns and questions regarding the environmental impact, maintaining the current identity of the surrounding neighborhoods, and short and long-term safety and livability of the planned project and surrounding neighborhoods. This project could negatively affect the quality of life for residents in the neighboring single-family homes, impacting their property values, privacy, and ability to enjoy their outdoor spaces. Proposed Mitigation/Action Requesting a Full Environmental Impact statement prior to approval. Proposed zoning reconsidered from R1 Low Density Residential to RS1, RS12, or RS20 suburban to maintain the surrounding neighborhoods in lot sizes and continue with residential development with large lots and expansive yards. Page 168 of 325 Specific Concerns EARTH Concerns of erosion issues and flooding during clearing, construction, and completed proposed plan. Are there proposed measures to prevent erosion during all stages of development? This proposed project will add impervious surfaces such as asphalt, concrete, and buildings. This will add significant wastewater runoff, and the added urban heat effect will raise surrounding temperatures. With less land, grass, crops, and native plants it will disrupt the current carbon footprint. There are already low spots on the south end of the proposed projects where flooding occurs during rain and snow. What measures will be taken to prevent this from being escalated during the land clearing? AIR Concerns of emissions from construction equipment and dust air pollution. With 900 houses, come 900+ cars. What will be done to help with the pollution? What measures will be in effect to control emissions or impacts on air quality? WATER Concerns about the Irrigation water demand – The current irrigation company Big Sky Irrigation has had a hard time maintaining water supply with the current summer water demand. In the past two years there have been shutdowns/issues on 4/9, 4/15, and 4/17 in 2025. 4/2, 4/22, and 5/11 in 2024. And two major mid-summer shutdowns in previous July of 2022 and 2023. What is the proposed Storm Water runoff method of collection? Will the southern sloped plans direct waterflow into Archer estates northern properties septic drainage areas? Will storm drains be installed to prevent this flooding? This plan alters current drainage patterns of the site reducing ground water absorption. There is already significant flooding prior to the added runoff from paved streets and structures. Concerns of groundwater runoff for the properties with well water zoned RR5 to the east of the proposed project. Page 169 of 325 PLANTS Current permanent crops – Corn, Potatoes, varieties of Field Grass What is the proposed plan to preserve or enhance the vegetation and maintain the positive carbon impact? ANIMALS Birds – Canadian Geese and Snow Geese annually use this field as a winter and spring migration route stop. Numerous species of Hawks, Quail, Sparrow, Starling, Hummingbirds, Finches, Killdeer, Doves, Robins, Heron, Woodpeckers, Owls, Crows, Seagulls, Pelicans all have been observed on this land. Mammals – Deer, Coyotes, Racoon, Skunk, Porcupine Other animals - Snakes, Lizards, Opossums, Squirrels Concern of the added road traffic and loss of habitat. In the month of October there were deer, racoon, and skunk hit by vehicles on Burns and Dent. What are the proposed measures to preserve or enhance wildlife? Concerns that invasive species including moles/voles and mice will relocate into our large grass lots when they lose their habitat. ENVIROMENTAL Numerous years of agricultural use of chemicals/fertilizers in the ground will get kicked up as dust or wastewater runoff. Noise – A proposed 10 years construction plan will create ongoing noise in the surrounding communities from construction equipment and construction traffic. What are the planned hours of noise disruption that will come from the proposed plan? Are there proposed measures to reduce noise impacts? HOUSING The current plan has 873 homes on 1/10 of an acre lots as small as 4,000 sq ft (avg. size 5,118sq ft.). Surrounding neighborhoods on all developed sides are all county zoned RS-20, RS40, RR5 and RC1 which range from half acre lots, acre lots, and larger. (21,000+ sq ft lots). To the north long term Agricultural Land. The proposed planned lot sizes are significantly smaller than the surrounding neighborhoods. To maintain with the Page 170 of 325 surrounding neighborhoods attributes, lot sizes should be more comparable in size and continue with residential development with large lots and expansive yards. AESTHETICS Views of the expansive land and hills to the north will be obstructed. What is the proposed plan and who will maintain the “alleyway/easements” between the proposed development and the already established northern properties of Archer estates? LIGHT/GLARE Concerns of light pollution with so many houses, and proposed streetlights. Many of the surrounding neighborhoods are without streetlights or have limited street lighting. RECREATION A 2-acre park is not adequate for the size of the proposed housing project. Proximity example of Kohler Estates 2 – it has a 7-acre park for 52 housing lots. Possibility of incorporating a much larger area designated for community parks, dog parks, walking trails, or other recreational activities. TRANSPORTATION Currently, there is no public transportation or bus routes for the proposed plan. Dent Rd is not designed for pedestrian walkability or bicycling. There are no sidewalks, the road shoulders are slanted and difficult to walk on, and there is no lighting. Adding so many homes and added traffic puts pedestrians in danger, especially any school children that would be using the roadways to walk home. The added traffic to the area creates increased risk to the hilled intersection of Burns and Dent, especially during winter conditions. There is a need for added traffic signals and crosswalks. Also, a need for a winter road plan especially for this dangerous intersection in icy conditions. How many added vehicular trips will be generated during the completed project? What will be the peak volume times? What data or transportation models were used to make these estimates? Current easement between proposed development and current houses in Archer estates is used for movement of agricultural products and as a community walking/biking trail. This easement should not be used for construction traffic. Page 171 of 325 PUBLIC SERVICES Added Police and Fire protection needed, adding public transportation. Current local schools are already at capacity for elementary, middle, and High school. What are the proposed measures to address the impacts on public services? UTILITIES Will this development have any effect on current septic systems in surrounding developments? What are the proposed services for electricity, natural gas, water, irrigation, refuse services, telephone, sanitary sewer, and surrounding septic systems? The city of Pasco continues to grow and build a strong community. The proposed Wilson Estates Subdivision does not appear to have taken into consideration all the environmental impacts or current communities that surround the land. Squeezing in as many houses on small lots as city codes will allow instead of maintaining the distinct character of the community seemingly goes against the City of Pasco’s Planning Department values. I strongly oppose this current proposal. Thank you for taking time to review and address my concerns. Aaron Fabre 11413 Easton Drive Pasco, WA 999301 Aaroboy21@hotmail.com 725-777-8021 Page 172 of 325 1 Ivan Barragan From:Brad Backus <brad@franklincountyirrigation.com> Sent:Friday, October 10, 2025 10:18 AM To:Ivan Barragan Subject:RE: Notice of Application-PP2025-004/SEPA2025-030 Wilson Estates Subdivision & Z2025-009 - City of Pasco [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Can you please continue to give me further information on this subdivision please Brad Backus Operations manager Franklin County Irriagtion Distict P.O. box 3907 Pasco Wa 99302 (509)547-3831 (509)545-1160 (fax) Brad@franklincountyirrigation.com From: Ivan Barragan <barragani@pasco-wa.gov> Sent: Thursday, October 9, 2025 4:43 PM To: Ivan Barragan <barragani@pasco-wa.gov> Subject: Notice of Application-PP2025-004/SEPA2025-030 Wilson Estates Subdivision & Z2025-009 - City of Pasco All, Please see the attached Preliminary Plat (PP2025-004), SEPA Checklist (SEPA2025-030), and Rezone Application (Z2025-009) submitted on September 26, 2025, for the subdivision of 873 single-family residential lots within the proposed R-1 (Low-Density Residential) zoning district. The property, currently zoned R-T (Residential Transition) under Ordinance No. 4637, encompasses approximately 156 acres. While the Rezone Application (Z2025-009) is exempt from SEPA, it is being reviewed concurrently with the Preliminary Plat and this SEPA review. The proposed development consists of single-family detached homes to be constructed in ten phases. Subdivision improvements will include mass grading, construction of public roads, and installation of water, sewer, irrigation, communication, and power infrastructure. The project also includes multiple public pedestrian pathways to enhance walkability within the residential blocks and a two-acre park proposed to be maintained by the Homeowners Association (HOA). Page 173 of 325 2 The site is located on Parcel No. 115180030 in Pasco, WA 99301, generally north of Burns Road, west of Broadmoor Boulevard, south of future Dent Road, and east of future Dent/Fraser Road. The proposal is subject to the applicable regulations of the Pasco Municipal Code. To reiterate, the Rezone Application (Z2025-009) is exempt from the SEPA process; however, it requires a Public Hearing before the Hearing Examiner and is ultimately a City Council decision. All pertinent submitted materials can also be found in the SEPA Register. Please submit comments for the proposed plat and SEPA submittal by 5:00 p.m. on October 29, 2025. If you have any questions or concerns, please let me know. Thank you, Ivan Barragan Planner III To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet. O: 509-544-4146 barragani@pasco-wa.gov | www.pasco-wa.gov City Hall, 525 N. 3rd Avenue, Pasco, WA 99301 This e-mail and any response to this e-mail may be a public record under Washington State Law and subject to inspection and copying by the public upon request. Accordingly, there can be no expectation of privacy. Page 174 of 325 OpposiƟon LeƩer to New Development SEPA COMMENT SUBMISSION COVER SHEET Name: John and Kathy Mancinelli Address: 11201 Mathews Rd., Pasco, WA 99301 Project Title: Wilson Estates Subdivision File Numbers: PP2025-004 / SEPA2025-030 / Z2025-009 Submission Type: Formal OpposiƟon LeƩer Summary of OpposiƟon: I strongly oppose the proposed Wilson Estates Subdivision located north of Burns Road and west of Broadmoor Boulevard. This development is incompaƟble with the exisƟng neighborhood and will cause significant and lasƟng impacts including: • Severe traffic congesƟon and safety hazards on Easton Drive, Burns Road, and Broadmoor Boulevard. • Increased flooding and drainage risks to exisƟng homes located downhill from the development. • Irreversible loss of neighborhood character and property value due to excessive housing density. • Prolonged construcƟon noise, dust, and disrupƟon over a 10-year period. • Inadequate park space and environmental miƟgaƟon measures. I respecƞully urge the City of Pasco to issue a DeterminaƟon of Significance (DS) and require a full Environmental Impact Statement (EIS) before allowing this project to proceed in any form. SubmiƩed by: Dr. John Mancinelli and Kathy Mancinelli Date: October 29, 2025 This cover sheet accompanies a full SEPA opposiƟon leƩer submiƩed for the public record. Dr. John Mancinelli Date: October 29, 2025 To: City of Pasco Community & Economic Development Department AƩn: Ivan Barragan, Planner III 525 N. 3rd Avenue Page 175 of 325 Pasco, WA 99301 Email: barragani@pasco-wa.gov Subject: Strong OpposiƟon – Wilson Estates Subdivision (PP2025-004 / SEPA2025-030 / Z2025-009) Dear Mr. Barragan, I am wriƟng as a new Pasco resident and property owner at 11201 Mathews Rd., which borders the southern edge of the proposed Wilson Estates Subdivision. I am submiƫng this leƩer to express my strong opposiƟon to this development proposal and to urge the City to deny or substanƟally revise the project before allowing it to move forward. We purchased our house just months ago with the appreciaƟon of the rural and quiet nature. The home has a very high assessed tax rate ($110,000 above purchase price). We were willing to pay the high tax rate due to the beauty and serene nature of the property. This proposal — encompassing 873 homes on 156 acres — would dramaƟcally alter the character, safety, and livability of our established community. The scale, density, and environmental footprint of the project are incompaƟble with surrounding neighborhoods and represent a significant threat to the quality of life for current residents. 1. Overwhelming Traffic and Road Safety Risks The traffic impact of adding nearly 900 homes in this area will be severe and unsustainable. Easton Drive, Burns Road, and Broadmoor Boulevard are already burdened with growing conges  on. This project will add thousands of daily vehicle trips with no corresponding roadway infrastructure to handle them. The City should not approve a development of this magnitude without first guaranteeing: • Major capacity improvements and traffic signals on Burns, Easton, and Broadmoor. • Safe pedestrian crossings and school zone protectons. • Enforced phasing condiƟons tying each construcƟon phase to completed traffic miƟgaƟons. Without these measures, this subdivision would place an unacceptable strain on local roads and endanger residents, children, and bicyclists. 2. Drainage and Flooding Threats to Adjacent Homes As a homeowner whose property sits directly downhill of the proposed subdivision, I am gravely Page 176 of 325 concerned that stormwater runoff from paved streets, roofs, and compacted soils will divert water toward exisƟng lots on Mathews Rd and Eaton Dr., causing erosion and flooding. Unless the City can ensure—through independent hydrological studies—that runoff will be fully contained on-site and maintained indefinitely, this proposal should not move forward. 3. Irreversible Harm to Neighborhood Character Easton Drive and Mathews Rd. are composed of half-acre and one-acre residenƟal lots that reflect the low-density rural transiƟon zoning under which we purchased our homes. Allowing a high-density subdivision of 873 Ɵghtly packed lots would erase the established neighborhood idenƟty, reduce privacy, and undermine the investments that exisƟng residents have made in maintaining a peaceful community. No amount of fencing or landscaping can adequately mitgate the stark difference between this project’s density and the exisƟng neighborhood form. 4. Years of ConstrucƟon DisrupƟon Ten planned construcƟon phases mean a decade or more of constant noise, dust, heavy machinery, and truck traffic. Residents along Easton Drive and Mathews Rd. will bear the brunt of these disrupƟons, enduring environmental and quality-of-life impacts for years without any benefit. ConstrucƟon traffic should be strictly prohibited from using Easton Drive or connecƟng neighborhood streets — and if that cannot be guaranteed, the proposal should be rejected outright. 5. Environmental and Livability Concerns The project site currently funcƟons as valuable open space and wildlife habitat. Replacing it enƟrely with dense housing and asphalt will increase the urban heat effect, reduce groundwater absorpƟon, and diminish local biodiversity. The token two-acre park proposed is grossly inadequate for a development of nearly 900 homes and does not serve as a meaningful environmental miƟgaƟon or community amenity. 6. IncompaƟbility with Pasco’s Long-Term Vision This project reflects an outdated “mass subdivision” approach rather than the though ƞul, sustainable growth Pasco residents expect. The community deserves beƩer than an overbuilt, high-density subdivision that strains public infrastructure, erodes open space, and sacrifices the Page 177 of 325 rural-suburban balance that makes north Pasco desirable. Untl the City can demonstrate that adequate infrastructure, environmental protec Ɵon, and community compaƟbiliƟes are guaranteed, the Wilson Estates Subdivision should be denied. Conclusion As a directly affected homeowner, I strongly oppose the approval of SEPA2025-030 and urge the City of Pasco to issue a DeterminaƟon of Significance (DS) rather than a DeterminaƟon of Non- Significance (DNS). The environmental, traffic, and community impacts of this proposal are substanƟal and unavoidable and warrant a full Environmental Impact Statement (EIS). I request to be kept informed of all future acƟons, hearings, and determinaƟons regarding this proposal. Thank you for taking these concerns seriously and for standing with exisƟng residents to protect the safety, livability, and integrity of our community. Sincerely, Dr. John Mancinelli and Kathy Mancinelli 11201 Mathews Rd. Pasco, WA 99301 CC: Pasco City Council – council@pasco-wa.gov Pasco Planning Commission – planning@pasco-wa.gov Page 178 of 325 1 Ivan Barragan From:David Barber <dkba72@gmail.com> Sent:Wednesday, October 22, 2025 12:10 PM To:Ivan Barragan Subject:Re: Z2025-009 Notice of Public Hearing - Rocky Hills Management LP "Wilson Estates" R-T to R-1 [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Ivan, When I first saw this I thought it was a joke. I have never seen such concentrated housing. I have also never seen a lot size that is 4000 ft.². It appears that this would be the smallest single housing lots in all of Pasco hugged right up against 0.5 acre and 1 acre lots. Is this essentially a rubber stamp project that will be pushed through no matter what? Or, is there any chance that city council decides to do .25 or .5 acre lots as it was originally zoned for? Thank you, David On Wed, Oct 22, 2025 at 11:56 AM Ivan Barragan <barragani@pasco-wa.gov> wrote: Please find attached the Notice of Public Hearing, scheduled for November 12, 2025, at 6:00 p.m. This notice will also be mailed to property owners within 300 feet of the project site today and published in the Tri-City Herald on October 26, 2025, in accordance with Pasco Municipal Code 25.210.040. If you have any questions or concerns, please feel free to contact me. I will also be preparing the staff report, which is due one week prior to the hearing. Thank you, You don't often get email from dkba72@gmail.com. Learn why this is important Page 179 of 325 2 Ivan Barragan Planner III To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet. O: 509-544-4146 barragani@pasco-wa.gov | www.pasco-wa.gov City Hall, 525 N. 3rd Avenue, Pasco, WA 99301 To help protect your privacy, Micro soft Office To help protect your privacy, Microsoft Office To help protect your privacy, Micro soft Office To help protect your privacy, Micro soft Office This e-mail and any response to this e-mail may be a public record under Washington State Law and subject to inspection and copying by the public upon request. Accordingly, there can be no expectation of privacy. Page 180 of 325 1 Ivan Barragan From:Jackie Ansotegui <jackieans@gmail.com> Sent:Wednesday, October 29, 2025 4:28 PM To:Ivan Barragan Subject:Opposition to Wilson Estates Subdivision (PP2025-004 / SEPA2025-030 / Z2025-009) [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Opposition to Wilson Estates Subdivision (PP2025-004 / SEPA2025-030 / Z2025-009) City of Pasco Community & Economic Development Department Attn: Ivan Barragan, Planner III 525 N. 3rd Avenue Pasco, WA 99301 Email: barragani@pasco-wa.gov Dear Mr. Barragan, We are writing as a longtime Pasco residents and homeowners on Whetstone Drive, near the area where the Wilson Estates Subdivision is being proposed. We strongly oppose this project in its current form and want to share why so many of us in this neighborhood are deeply concerned. You don't often get email from jackieans@gmail.com. Learn why this is important Page 181 of 325 2 Traffic, Traffic, and More Traffic The biggest issue is traffic — plain and simple. We’re already dealing with major congestion from the 400+ apartments that have been built (and more still going up). Adding nearly 900 more homes will make things unbearable. Burns Road, Broadmoor, and Dent Rd can’t handle what we have now, let alone thousands of new cars every day. It’s already tough to turn onto Burns safely, especially during peak hours. Kids ride bikes, families walk dogs, and people are out jogging — this kind of added traffic puts everyone at risk. Before any new development of this size is approved, the city needs to make real improvements: - Additional traffic lights and turn lanes on Burns and Dent. The work already done on Broadmoor is not sufficient to handle the added traffic. - Safe crosswalks and speed control for pedestrians and school zones. - Phased construction tied to completed road upgrades, not promises for “later.” Without those, this project will overwhelm our streets and make daily driving downright dangerous. Developer’s Responsibility Page 182 of 325 3 and Zoning The developer purchased this property knowing exactly what the existing zoning was — low-density residential. Now they’re trying to push through a massive rezone purely for profit, with no regard for the people who already live here. Those of us who chose this area did so because of its quiet, open, low-density feel. We value space, safety, and a slower pace of life. It feels unfair that someone can come in, ignore that, and try to cash in by cramming in as many houses as possible without considering the strain it puts on the rest of us or the infrastructure that simply isn’t built for it. Drainage and Flooding Concerns Those of us downhill from this property have real worries about where all that stormwater will go once the land is covered with roads and rooftops. We’ve already seen drainage issues in heavy rain. The city should require a full, independent study before approving anything. Neighborhood Character This area was designed as a low-density, family-friendly neighborhood. Jamming in 873 small lots changes everything — the look, the feel, and the peace and quiet that drew us here in the first place. No amount of landscaping will make that density blend in. Many Years of Construction Chaos Ten phases of construction means a decade of noise, dust, and truck traffic. Those of us living here shouldn’t have to deal with that kind of disruption for years on end. At the very least, construction traffic should be kept off Easton Drive and other existing residential Page 183 of 325 4 roads. A Two-Acre Park Isn’t Enough For nearly 900 homes, a two-acre park is barely a token gesture. Families here know how much open space matters — we need realistic green areas that actually support the number of people moving in. Final Thoughts We are not against growth, but this project is way out of scale for what the area can handle right now. It’s going to choke our roads, change the character of our neighborhood, and make an already busy area nearly impossible to navigate. We respectfully ask the City to issue a Determination of Significance (DS) and require a full Environmental Impact Statement (EIS) before letting this move forward. We also ask city leaders and the planning commission to prioritize the voices of the people who already live here — the families who deal with this traffic every day — and protect the character and safety of our existing neighborhoods. Thank you for your time and attention to these concerns. Page 184 of 325 5 Sincerely, Darwin and Jackie Ansotegui 6517 Whetstone Dr Please confirm receipt of this email. Page 185 of 325 OpposiƟon LeƩer to New Development SEPA COMMENT SUBMISSION COVER SHEET Name: John and Kathy Mancinelli Address: 11201 Mathews Rd., Pasco, WA 99301 Project Title: Wilson Estates Subdivision File Numbers: PP2025-004 / SEPA2025-030 / Z2025-009 Submission Type: Formal OpposiƟon LeƩer Summary of OpposiƟon: I strongly oppose the proposed Wilson Estates Subdivision located north of Burns Road and west of Broadmoor Boulevard. This development is incompaƟble with the exisƟng neighborhood and will cause significant and lasƟng impacts including: • Severe traffic congesƟon and safety hazards on Easton Drive, Burns Road, and Broadmoor Boulevard. • Increased flooding and drainage risks to exisƟng homes located downhill from the development. • Irreversible loss of neighborhood character and property value due to excessive housing density. • Prolonged construcƟon noise, dust, and disrupƟon over a 10-year period. • Inadequate park space and environmental miƟgaƟon measures. I respecƞully urge the City of Pasco to issue a DeterminaƟon of Significance (DS) and require a full Environmental Impact Statement (EIS) before allowing this project to proceed in any form. SubmiƩed by: Dr. John Mancinelli and Kathy Mancinelli Date: October 29, 2025 This cover sheet accompanies a full SEPA opposiƟon leƩer submiƩed for the public record. Dr. John Mancinelli Date: October 29, 2025 To: City of Pasco Community & Economic Development Department AƩn: Ivan Barragan, Planner III 525 N. 3rd Avenue Page 186 of 325 Pasco, WA 99301 Email: barragani@pasco-wa.gov Subject: Strong OpposiƟon – Wilson Estates Subdivision (PP2025-004 / SEPA2025-030 / Z2025-009) Dear Mr. Barragan, I am wriƟng as a new Pasco resident and property owner at 11201 Mathews Rd., which borders the southern edge of the proposed Wilson Estates Subdivision. I am submiƫng this leƩer to express my strong opposiƟon to this development proposal and to urge the City to deny or substanƟally revise the project before allowing it to move forward. We purchased our house just months ago with the appreciaƟon of the rural and quiet nature. The home has a very high assessed tax rate ($110,000 above purchase price). We were willing to pay the high tax rate due to the beauty and serene nature of the property. This proposal — encompassing 873 homes on 156 acres — would dramaƟcally alter the character, safety, and livability of our established community. The scale, density, and environmental footprint of the project are incompaƟble with surrounding neighborhoods and represent a significant threat to the quality of life for current residents. 1. Overwhelming Traffic and Road Safety Risks The traffic impact of adding nearly 900 homes in this area will be severe and unsustainable. Easton Drive, Burns Road, and Broadmoor Boulevard are already burdened with growing conges  on. This project will add thousands of daily vehicle trips with no corresponding roadway infrastructure to handle them. The City should not approve a development of this magnitude without first guaranteeing: • Major capacity improvements and traffic signals on Burns, Easton, and Broadmoor. • Safe pedestrian crossings and school zone protectons. • Enforced phasing condiƟons tying each construcƟon phase to completed traffic miƟgaƟons. Without these measures, this subdivision would place an unacceptable strain on local roads and endanger residents, children, and bicyclists. 2. Drainage and Flooding Threats to Adjacent Homes As a homeowner whose property sits directly downhill of the proposed subdivision, I am gravely Page 187 of 325 concerned that stormwater runoff from paved streets, roofs, and compacted soils will divert water toward exisƟng lots on Mathews Rd and Eaton Dr., causing erosion and flooding. Unless the City can ensure—through independent hydrological studies—that runoff will be fully contained on-site and maintained indefinitely, this proposal should not move forward. 3. Irreversible Harm to Neighborhood Character Easton Drive and Mathews Rd. are composed of half-acre and one-acre residenƟal lots that reflect the low-density rural transiƟon zoning under which we purchased our homes. Allowing a high-density subdivision of 873 Ɵghtly packed lots would erase the established neighborhood idenƟty, reduce privacy, and undermine the investments that exisƟng residents have made in maintaining a peaceful community. No amount of fencing or landscaping can adequately mitgate the stark difference between this project’s density and the exisƟng neighborhood form. 4. Years of ConstrucƟon DisrupƟon Ten planned construcƟon phases mean a decade or more of constant noise, dust, heavy machinery, and truck traffic. Residents along Easton Drive and Mathews Rd. will bear the brunt of these disrupƟons, enduring environmental and quality-of-life impacts for years without any benefit. ConstrucƟon traffic should be strictly prohibited from using Easton Drive or connecƟng neighborhood streets — and if that cannot be guaranteed, the proposal should be rejected outright. 5. Environmental and Livability Concerns The project site currently funcƟons as valuable open space and wildlife habitat. Replacing it enƟrely with dense housing and asphalt will increase the urban heat effect, reduce groundwater absorpƟon, and diminish local biodiversity. The token two-acre park proposed is grossly inadequate for a development of nearly 900 homes and does not serve as a meaningful environmental miƟgaƟon or community amenity. 6. IncompaƟbility with Pasco’s Long-Term Vision This project reflects an outdated “mass subdivision” approach rather than the though ƞul, sustainable growth Pasco residents expect. The community deserves beƩer than an overbuilt, high-density subdivision that strains public infrastructure, erodes open space, and sacrifices the Page 188 of 325 rural-suburban balance that makes north Pasco desirable. Untl the City can demonstrate that adequate infrastructure, environmental protec Ɵon, and community compaƟbiliƟes are guaranteed, the Wilson Estates Subdivision should be denied. Conclusion As a directly affected homeowner, I strongly oppose the approval of SEPA2025-030 and urge the City of Pasco to issue a DeterminaƟon of Significance (DS) rather than a DeterminaƟon of Non- Significance (DNS). The environmental, traffic, and community impacts of this proposal are substanƟal and unavoidable and warrant a full Environmental Impact Statement (EIS). I request to be kept informed of all future acƟons, hearings, and determinaƟons regarding this proposal. Thank you for taking these concerns seriously and for standing with exisƟng residents to protect the safety, livability, and integrity of our community. Sincerely, Dr. John Mancinelli and Kathy Mancinelli 11201 Mathews Rd. Pasco, WA 99301 CC: Pasco City Council – council@pasco-wa.gov Pasco Planning Commission – planning@pasco-wa.gov Page 189 of 325 1 Ivan Barragan From:Omar Garza <olg007@outlook.com> Sent:Monday, November 3, 2025 7:14 PM To:Ivan Barragan Subject:Re: Z2025-009 Rocky Hills zone concern [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Subject: Opposition to Rezoning Request Z2025-009 – Wilson Estates Dear City of Pasco Hearing Examiner, I am a nearby homeowner and wish to express my opposition to the proposed rezoning of the Wilson Estates property (Z2025-009) from R-T to R-1. This change would allow much higher housing density—around 873 new homes—which would overwhelm local roads and increase traffic in an area not designed to handle that volume. It would also change the character of our neighborhood, where homes currently sit on half-acre or larger lots and average over 2,500 square feet. Allowing smaller, high-density lots next to our community would likely devalue existing homes and reduce the quiet, spacious atmosphere that residents have invested in. For these reasons, I respectfully ask that the City deny this rezoning request and preserve the current R-T zoning. Thank you for considering my comments. Omar Garza olg007@outlook.com Sent from my iPhone On Nov 3, 2025, at 7:10 PM, Omar Garza <olg007@outlook.com> wrote: Omar Garza olg007@outlook.com You don't often get email from olg007@outlook.com. Learn why this is important Page 190 of 325 SEPA comment for SEPA2025-030 Wilson Estates Subdivision • Subject: SEPA comments for Wilson Estates Subdivision (SEPA2025-030, PP2025- 004, Z2025-009) • To: City of Pasco Community & Economic Development Department attn. Ivan Barragan • From: Aaron Fabre, owner of 11413 Easton Dr, Pasco, WA 99301 o Aaroboy21@hotmail.com o (725) 777-8021 • Date: October 28th 2025 Thank you for the opportunity to comment on and voice my concerns on the SEPA determination for the Wilson Estates Subdivision. The city of Pasco’s Comprehensive Plan is to reflect the community’s vision of the future, and the city of Pasco’s Planning Department vision is to help create a sustainable, functional, and aesthetically pleasing community through thoughtful planning. I do not believe the proposed subdivision reflects the vision of the city of Pasco and I oppose the current plans. The proposed Wilson Estates Subdivision brings numerous concerns and questions regarding the environmental impact, maintaining the current identity of the surrounding neighborhoods, and short and long-term safety and livability of the planned project and surrounding neighborhoods. This project could negatively affect the quality of life for residents in the neighboring single-family homes, impacting their property values, privacy, and ability to enjoy their outdoor spaces. Proposed Mitigation/Action Requesting a Full Environmental Impact statement prior to approval. Proposed zoning reconsidered from R1 Low Density Residential to RS1, RS12, or RS20 suburban to maintain the surrounding neighborhoods in lot sizes and continue with residential development with large lots and expansive yards. Page 191 of 325 Specific Concerns EARTH Concerns of erosion issues and flooding during clearing, construction, and completed proposed plan. Are there proposed measures to prevent erosion during all stages of development? This proposed project will add impervious surfaces such as asphalt, concrete, and buildings. This will add significant wastewater runoff, and the added urban heat effect will raise surrounding temperatures. With less land, grass, crops, and native plants it will disrupt the current carbon footprint. There are already low spots on the south end of the proposed projects where flooding occurs during rain and snow. What measures will be taken to prevent this from being escalated during the land clearing? AIR Concerns of emissions from construction equipment and dust air pollution. With 900 houses, come 900+ cars. What will be done to help with the pollution? What measures will be in effect to control emissions or impacts on air quality? WATER Concerns about the Irrigation water demand – The current irrigation company Big Sky Irrigation has had a hard time maintaining water supply with the current summer water demand. In the past two years there have been shutdowns/issues on 4/9, 4/15, and 4/17 in 2025. 4/2, 4/22, and 5/11 in 2024. And two major mid-summer shutdowns in previous July of 2022 and 2023. What is the proposed Storm Water runoff method of collection? Will the southern sloped plans direct waterflow into Archer estates northern properties septic drainage areas? Will storm drains be installed to prevent this flooding? This plan alters current drainage patterns of the site reducing ground water absorption. There is already significant flooding prior to the added runoff from paved streets and structures. Concerns of groundwater runoff for the properties with well water zoned RR5 to the east of the proposed project. Page 192 of 325 PLANTS Current permanent crops – Corn, Potatoes, varieties of Field Grass What is the proposed plan to preserve or enhance the vegetation and maintain the positive carbon impact? ANIMALS Birds – Canadian Geese and Snow Geese annually use this field as a winter and spring migration route stop. Numerous species of Hawks, Quail, Sparrow, Starling, Hummingbirds, Finches, Killdeer, Doves, Robins, Heron, Woodpeckers, Owls, Crows, Seagulls, Pelicans all have been observed on this land. Mammals – Deer, Coyotes, Racoon, Skunk, Porcupine Other animals - Snakes, Lizards, Opossums, Squirrels Concern of the added road traffic and loss of habitat. In the month of October there were deer, racoon, and skunk hit by vehicles on Burns and Dent. What are the proposed measures to preserve or enhance wildlife? Concerns that invasive species including moles/voles and mice will relocate into our large grass lots when they lose their habitat. ENVIROMENTAL Numerous years of agricultural use of chemicals/fertilizers in the ground will get kicked up as dust or wastewater runoff. Noise – A proposed 10 years construction plan will create ongoing noise in the surrounding communities from construction equipment and construction traffic. What are the planned hours of noise disruption that will come from the proposed plan? Are there proposed measures to reduce noise impacts? HOUSING The current plan has 873 homes on 1/10 of an acre lots as small as 4,000 sq ft (avg. size 5,118sq ft.). Surrounding neighborhoods on all developed sides are all county zoned RS-20, RS40, RR5 and RC1 which range from half acre lots, acre lots, and larger. (21,000+ sq ft lots). To the north long term Agricultural Land. The proposed planned lot sizes are significantly smaller than the surrounding neighborhoods. To maintain with the Page 193 of 325 surrounding neighborhoods attributes, lot sizes should be more comparable in size and continue with residential development with large lots and expansive yards. AESTHETICS Views of the expansive land and hills to the north will be obstructed. What is the proposed plan and who will maintain the “alleyway/easements” between the proposed development and the already established northern properties of Archer estates? LIGHT/GLARE Concerns of light pollution with so many houses, and proposed streetlights. Many of the surrounding neighborhoods are without streetlights or have limited street lighting. RECREATION A 2-acre park is not adequate for the size of the proposed housing project. Proximity example of Kohler Estates 2 – it has a 7-acre park for 52 housing lots. Possibility of incorporating a much larger area designated for community parks, dog parks, walking trails, or other recreational activities. TRANSPORTATION Currently, there is no public transportation or bus routes for the proposed plan. Dent Rd is not designed for pedestrian walkability or bicycling. There are no sidewalks, the road shoulders are slanted and difficult to walk on, and there is no lighting. Adding so many homes and added traffic puts pedestrians in danger, especially any school children that would be using the roadways to walk home. The added traffic to the area creates increased risk to the hilled intersection of Burns and Dent, especially during winter conditions. There is a need for added traffic signals and crosswalks. Also, a need for a winter road plan especially for this dangerous intersection in icy conditions. How many added vehicular trips will be generated during the completed project? What will be the peak volume times? What data or transportation models were used to make these estimates? Current easement between proposed development and current houses in Archer estates is used for movement of agricultural products and as a community walking/biking trail. This easement should not be used for construction traffic. Page 194 of 325 PUBLIC SERVICES Added Police and Fire protection needed, adding public transportation. Current local schools are already at capacity for elementary, middle, and High school. What are the proposed measures to address the impacts on public services? UTILITIES Will this development have any effect on current septic systems in surrounding developments? What are the proposed services for electricity, natural gas, water, irrigation, refuse services, telephone, sanitary sewer, and surrounding septic systems? The city of Pasco continues to grow and build a strong community. The proposed Wilson Estates Subdivision does not appear to have taken into consideration all the environmental impacts or current communities that surround the land. Squeezing in as many houses on small lots as city codes will allow instead of maintaining the distinct character of the community seemingly goes against the City of Pasco’s Planning Department values. I strongly oppose this current proposal. Thank you for taking time to review and address my concerns. Aaron Fabre 11413 Easton Drive Pasco, WA 999301 Aaroboy21@hotmail.com 725-777-8021 Page 195 of 325 Page 196 of 325 Page 197 of 325 Pasco City Council January 20, 2026 Regular Meeting Pa g e 1 9 8 o f 3 2 5 Ordinance-Rocky Hills Management LP “Wilson Estates” R-T to R-1 Rezone-Z 2025- 009 January 20, 2026 Pasco City Council Pa g e 1 9 9 o f 3 2 5 PMC Comp Plan Map Proposed City Zoning Map 01 02 03 Pa g e 2 0 0 o f 3 2 5 Rezone -PMC Requirements for zoning petition (PMC 25.210.030): •A rezone petition must identify when the current zoning took effect, explain the changed conditions and justification for therequest, address impacts on adjacent properties and the Comprehensive Plan, note the property’s Comprehensive Plan designation, state the effect on the owner if denied, and include any additional information required by the Hearing Examiner. Hearing Examiner –Findings and recommendations (PMC 25.210.060): •After an open record hearing on a rezone petition, the Hearing Examiner must issue findings and conclusions addressing whether the proposal aligns with the Comprehensive Plan, avoids material detriment to the vicinity, provides community benefit, requires conditions to mitigate impacts, and/or necessitates a concomitant agreement with the City. Process Milestones: •Public Hearing held: November 12, 2025 •Hearing Examiner Recommendation November 26, 2025: Approval of R-1 Zoning City Council Consideration: 1) Approve the recommended rezoning (with or without modifications) 2) Enter into a Concomitant Agreement (PMC 25.210.100) 3) Deny the proposed rezone Pa g e 2 0 1 o f 3 2 5 Pa g e 2 0 2 o f 3 2 5 Pa g e 2 0 3 o f 3 2 5 Questions? Thank you! Pa g e 2 0 4 o f 3 2 5 AGENDA REPORT FOR: City Council January 9, 2024 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Debra Barham, City Clerk City Manager SUBJECT: Resolution No. 4701 - 2026-2027 City Council Representation on Local & Regional Boards and Committees I. ATTACHMENT(S): Resolution Board and Committee Assignments List for City Council Appointments II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:confirming I move to approve Resolution No. 4701, Mayoral assignments of Councilmembers to various community boards and committees for the years 2026-2027. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background: of number a on desired required is representation Council City and/or municipal and regional boards and committees. The practice of the City Council has been to make Council appointments to the various boards and committees on a biennial basis; thus, appointments generally are for a two- year term, but not limited to one term. Changes to these appointments, if necessary, can be made at any time by action of the Mayor with confirmation of the City Council. V. DISCUSSION: Action: Mayor Grimm completed the Council's assignments to local and regional Boards and Committees for 2026-2027 and is seeking confirmation from Page 205 of 325 Council by approving the attached resolution and list of the 2026-2027 Council Assignments. Next Steps: 1. The 2026-2027 Council Assignments List will be provided to Council. 2. The local and regional Boards & Commissions will be notified of the City representative(s) on their board & commissions. 3. Council members will participate and attend the boards & commissions meetings assigned to them. Alternative: 1. Council may reject the Mayor's assignments. Page 206 of 325 Resolution – 2026-2027 Council Assignments - 1 RESOLUTION NO. ____ A RESOLUTION CONFIRMING MAYORAL ASSIGNMENTS OF COUNCILMEMBERS TO VARIOUS COMMUNITY BOARDS AND COMMITTEES FOR THE YEARS 2026-2027. WHEREAS, various boards and committees, serving both local and regional purposes, require representation by the Pasco City Council; and WHEREAS, Mayor Grimm, after consultation with Councilmembers, has declared appointments to the respective boards and committees reflected in the list attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the Pasco City Council hereby confirms the appointments to the respective boards and committees as listed in Exhibit A, attached hereto, until otherwise modified by action of the Mayor and City Council. Be It Further Resolved, that this resolution will take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 207 of 325 CITY COUNCIL BOARD AND COMMITTEE ASSIGNMENTS - CALENDAR YEARS 2026-2026 Mayoral Appointments to Board and Committee Membership BOARD/COMMITTEE DAY TIME LOCATION REP ALT Ben-Franklin Transit Board 2nd Thursday 7:00 pm Ben-Franklin Transit Grimm Perales Benton Franklin Community Action Connections 4th Thursday 5:30 pm 720 W. Court Street, Pasco Hernandez Campos Benton Franklin Council of Governments 3rd Friday 10:00 am Ben-Franklin Transit Grimm Figueroa Franklin County Emergency Management Council 3rd Thursday, Quarterly 3:30 pm EMS Office Campos Hernandez Franklin County Law & Justice Council As called FC Courthouse Perales Milne Franklin County Solid Waste Advisory Committee As called FC Public Works Campos Grimm Good Roads & Transportation Association* 3rd Wednesday, Bi- Monthly 5:30 pm Pasco Airport / Virtual Perales Hernandez Hanford Area Economic Investment Fund 4th Monday 4:00 pm Ben-Franklin Transit Cotta Hanford Communities Governing Board (and ECA) 3rd Thursday, Quarterly 9:00 am Richland Council Chambers Hernandez Cotta HAPO Center Advisory Board (Formally TRAC)* 4th Tuesday, Quarterly 5:00 pm HAPO Center Perales, Figueroa & 1 City resident LEOFF Disability Board 3rd Monday 6:00 pm City Hall - Pasco Conference Room # Mayor Grimm # Mayor Pro Tem Milne Local Housing Trust Fund Oversight Committee As called Campos Figueroa Lodging Tax Advisory Committee (LTAC) As called City Hall – Pasco Conference Room # Mayor Grimm # Mayor Pro Tem Milne Mid-Columbia County Emergency Medical Services & Trauma Care Council 1st Monday, Even- Months 1:30 pm Zoom Meeting (contact Chair VanBeek at MVanBeek@ci.richland.wa.us Cotta Hernandez Old Fire Pension Board 2nd Monday, Quarterly 6:00 pm City Hall - Pasco Conference Room # Mayor Grimm # Mayor Pro Tem Milne Parks & Recreation Advisory Board** 1st Thursday 5:30 pm City Hall - Council Chambers Milne Hernandez Pasco Public Facilities District* 3rd Tuesday 4:00 pm City Hall - Council Chambers Figueroa Milne PSD Skilled & Technical Advisory Committee** 2nd Thursday 4:30 pm Virtual Milne Reserve Officers Board 3rd Monday, as needed 5:30 pm City Hall - Pasco Conference Room # Mayor Grimm # Mayor Pro Tem Milne Tri-Cities National Park Committee 3rd Thursday 4:00 pm 7130 W. Grandridge Blvd, Kennewick Hernandez Figueroa Tri-Cities Regional PFD Board As called Varies Grimm, Campos, Cotta (3 Reps -Council and/or PPFD Board) TRIDEC Board of Directors 4th Thursday, Odd months 4:00 pm 7130 W. Grandridge Blvd, Kennewick Perales Milne Visit Tri-Cities Board 4th Wednesday 7:30 am 7130 W. Grandridge Blvd, Kennewick Figueroa Campos *Optional (Elective Official and/or Staff) **Voluntary (does not require elected official as representative) # Mayor/Mayor Pro Tem required Approved: ____________ Resolution No._______ Pa g e 2 0 8 o f 3 2 5 AGENDA REPORT FOR: City Council January 13, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Ordinance No. 4804 - Adjustment to Utility Rate and Connection Fee - Water and Sewer (10 minute staff presentation) I. ATTACHMENT(S): Ordinance Waterworks Utility Historical Operating Results (Attention to total Debt Coverage Ratio) Comparison of Development related fees with neighboring Cities II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. 4804, amending and repealing Sections and Summary Fee Chapter 3.35 Code in Municipal Pasco of amending and repealing Sections in Title 13 Water and Sewers to adjust rates and connection fees for City Water and Sewer Utilities and, further authorize publication by summary only. III. FISCAL IMPACT: Proposed rate increase (expressed in %) as follows: CC (Single Family Home) 2026 2027 2028 2029 Water $6,148 20.75% 20.75% 20.75% 9.5% Sewer $4,354 8% 8% 8% 8% Proposed connection charge (CC): Water - $6,148 , Sewer - $4,583 Effective Date: Rates: March 1, 2026 Connection Fees: January 1, 2027 Impacts (other than fiscal): The updated analysis indicates that the City’s water and sewer utilities face Page 209 of 325 substantial long-term infrastructure obligations, including the replacement of the Butterfield Water Treatment Plant (estimated at $220–$260 million) and projected capital needs totaling approximately $292 million for water and $131 million for sewer between 2025 and 2034. These projects are essential to maintain system reliability, public health, regulatory compliance, and service continuity. To mitigate near-term impacts, staff has deferred certain capital projects and is actively pursuing more than $80 million in low-interest loan funding, which could result in savings of more than $50 million compared to traditional financing. These assumptions were incorporated into the rate options presented to Council and may allow for future rate reductions if loan funding is successfully secured. IV. HISTORY AND FACTS BRIEF: Background: financial all fund to revenue necessary the assess studies Rate annual obligations, including operating expenses, debt service payments, and capital investments. Utility systems are also required to meet and maintain specific financial benchmarks, such as debt service coverage ratios and reserve balances, to satisfy debt holders and ensure adequate funding for emergency operations. Given the infrastructure-intensive and long-term nature of water and sewer systems, multi-year financial analysis is critical to avoid deferred maintenance, declining service levels, and significant unplanned rate increases in future years. At the October 6 Regular Council Meeting and again during the November 10, 2025 Council Workshop, staff and FCS (Bowman Consulting Group) presented the Rate including Sewer Study, Water comprehensive and City’s recommended adjustments to monthly rates and connection charges. The rate study utilities enterprise-funded for to standard the fulfills requirement periodically evaluate whether revenues are sufficient to meet operating costs, debt obligations, capital needs, and required financial targets. On November 17, 2025 Regular meeting, Council directed staff to conduct further outreach to developers and community at large. Council also directed staff to bring this back to Council for action on January 20, 2026 Regular meeting for action. Staff conducted two outreach meetings, on January 7 with development community and January 12 with community at large. Outreach: Development Community: Some notable comments from the development community during the outreach session were:  Request for Council to find funding from other sources like State and Federal government, and other local funding like sales tax etc. Page 210 of 325  Request for Council to phase in the connection fees over a period of time like 4-5 years was mentioned.  Request to sunset the connection fees at a certain point.  Request to grandfather preliminary plats. Staff is estimating that this action will result in loss of funding over $20 million and will require a recalibration of rates to recoup the gap. Overall, there was recognition of the fact that the City's infrastructure will run out of capacity in near future if investments are not made. However, there was a significant concern for the connection fees impact to the development community and affordability of homes. Community At Large: Community outreach meeting was conducted on January 12, 2026. Outreach meeting had low attendance, however, residents have been engaging over social media. Overall, residents would prefer for the City to utilize other tax revenues to manage the utilities, as well as, growth to pay for growth. Media outreach:  7,800 impressions on Facebook and Instagram  115 webpage hits  1,060 impressions on LinkedIn  Interviews with KONA and KEPR  Dozen viewers on YouTube Public information and transparency efforts have been underway, including a dedicated webpage on the City’s website outlining the rate study and proposed and rate adjustments: Water Sewer 2026 Utility Rate Adjustments | Pasco, WA - Official Website V. DISCUSSION: Recommendation: Approve the proposed Water and Sewer utility rate adjustments to be effective March 1, 2026 and connection fees to be effective as of January 1, 2027. In addition to updated connection fees that will provide sufficient infrastructure for future growth, the proposed methodology for utility connection fees aligns with industry standards by basing fees on water meter size and projected sewer flow rather than lot size or frontage. This approach more accurately reflects the true cost of existing and future system capacity, ensures equity among customers, and improves predictability for new development. Proposed ordinance includes cleanup of existing code as per City's goal to make revision to antiquated and/or unclear codes. The revision is geared towards making our Page 211 of 325 requirements clear for our customers. Constraints: 1. Department of Health(DOH) has provided $14.727 million in low-interest loans with $5.15 million of it to be forgiven. DOH has allowed the City to extend its period to accept the loan till late January; after this period the City will be at high risk of losing this funding. City should not accept this loan without rate increases, as that creates challenges on revenue sources to make future loan payments. 2. Significant increases in utility fees can be a financial challenge to many of our residents. City has discount program for low income senior residents that provides discounted water, sewer and irrigation services. Council 2025. in irrigation include service this expanded to https://www.pasco-wa.gov/276/Low-Income-Senior-Discounts 3. Historically, utility connection fees have been low and unpredictable, which has not adequately reflected the cost of infrastructure capacity or growth impacts. The revised methodology results in significant increases to and perception affordability presents which fees, connection challenges for new customers and development. Implementation requires amendments to City code, as reflected in the proposed ordinances included in the packet. Next Steps: Ordinance provided for Council consideration to formally adopt the updated monthly utility rates and connection charges, with rates being effective on March 1, 2026 and connection fees being effective on January 1, 2027. Upon adoption, and rates new the of with proceed will staff implementation connection fee methodology in accordance with the approved ordinances and updated code provisions. Alternatives: 1. Council can reject the ordinance as proposed and direct staff to revise the recommendation. This might result in losing $14.7 million in funding from DOH. 2. Council can revise the motion and take separate actions on rates and connection fee; taking action on one and delaying the other. Delays in adoption of rates might result in losing the aforementioned funding. Page 212 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 1 {DPK4915-7476-8777;1/13206.000014/} ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING AND REPEALING SECTIONS OF PASCO MUNICIPAL CODE IN CHAPTER 3.35 FEE SUMMARY AND AMENDING AND REPEALING SECTIONS IN TITLE 13 WATER AND SEWERS TO ADJUST RATES AND CONNECTION FEES FOR CITY WATER AND SEWER UTILITIES. (MAXIMUM ALLOWED CONNECTION CHARGE) WHEREAS, Pasco Municipal Code (PMC) Chapter 3.35 Fee Summary and Title 13 Water and Sewers contains numerous charges including, but not limited to, Water and Sewer Utilities billing monthly base fees and connections fees; and WHEREAS, studies of the rates, charges, and fees of utility systems are generally conducted on periodic intervals to ensure they provide adequate revenue for the utilities, and to ensure the rates, charges, and fees are, and continue to be, in conformance with state law; and WHEREAS, the City contracted with Financial Consulting Solutions Group (FCS Group) to evaluate and provide a recommendation to the City concerning water and sewer monthly rates and connection fees; and WHEREAS, at the October 6, 2025, City Council Regular Meeting, the FCS Group presented the Water and Sewer Rate Study to the Council recommending revisions to the City's water and sewer monthly rates and connection fees; and WHEREAS, at the November 10, 2025, City Council Workshop Meeting, the Council directed staff to adopt increases as recommended by the FCS Group. WHEREAS, in the event the City is awarded $80 million or more in low interest loans in support of water infrastructure construction, rates will be reevaluated and adjusted as deemed appropriate to reflect such awards prior to the 4-year period established in this ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Water Utility PMC Section 3.35.160 Water utility effective January 1,2022 is hereby amended and shall read as follows: 3.35.160 Water utility effective January 1, 2022 through February 28, 2026. Fee/Charge Reference 2021 2022 2023 2024 2025 2026 Page 213 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 2 {DPK4915-7476-8777;1/13206.000014/} Inside city: Consumption – per 100 cubic feet: Residential/com mercial $0.88 $0.94 $1.00 $1.07 $1.12 $1.18 13.20.050 Bulk – per 1,000 gallons $1.45 $1.54 $1.64 $1.75 $1.84 $1.93 13.20.080 Residential – single- family base fees: 3/4 and 5/8 inch – per month $20.55 $21.89 $23.31 $24.83 $26.07 $27.37 13.20.020 1 inch – per month $30.81 $32.82 $34.95 $37.22 $39.08 $41.03 13.20.020 Senior reduced/low income: 3/4 and 5/8 inch – per month $6.83 $7.27 $7.74 $8.24 $8.65 $9.08 3.65.150 1 inch – per month $10.30 $10.97 $11.68 $12.44 $13.06 $13.71 3.65.150 Commercial – base fees: 3/4 inch – per month $28.97 $30.85 $32.86 $35.00 $36.75 $38.59 13.20.030 1 inch – per month $42.37 $45.12 $48.05 $51.17 $53.73 $56.42 13.20.030 Page 214 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 3 {DPK4915-7476-8777;1/13206.000014/} 1-1/2 inch – per month $81.60 $86.90 $92.55 $98.57 $103.50 $108.68 13.20.030 2 inch – per month $130.86 $139.37 $148.43 $158.08 $165.98 $174.28 13.20.030 3 inch – per month $178.74 $190.36 $202.73 $215.91 $226.71 $238.05 13.20.030 4 inch – per month $257.54 $274.28 $292.11 $311.10 $326.66 $342.99 13.20.030 6 inch – per month $402.01 $428.14 $455.97 $485.61 $509.89 $535.38 13.20.030 8 inch – per month $557.10 $593.31 $631.88 $672.95 $706.60 $741.93 13.20.030 10 inch – per month $967.36 $1,015.73 $1,066.52 13.20.030 Fee/Charge Reference Outside City; effective 11/1/02: Consumption – per 100 cubic feet: Residential/commercial 90% surcharge 13.20.090 Bulk – per 1,000 gallons 90% surcharge 13.20.090 Residential – single-family base fees: 3/4 and 5/8 inch – per month 90% surcharge 13.20.090 1 inch – per month 90% surcharge 13.20.090 Senior reduced/low income 90% surcharge 13.20.090 Page 215 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 4 {DPK4915-7476-8777;1/13206.000014/} Commercial – base fees: All sizes 90% surcharge 13.20.090 Fee/Charge Reference Fire hydrants: Meter rental: Refundable deposit Not to exceed 110% of Cost, as determined by the Director of Finance 13.20.080 Nonrefundable removal fee $30.00 13.20.080 Monthly base rental fee $62.00 Late payment and not returning meter after 48 hrs. (per day) $50.00 Hydrant rental – outside corporate limits, per year $20.00 13.20.070 Charges for water meters and services: Meter and service costs equal to average cost to City based on prior year 13.45.010 Move meter for owner Cost + 15% 13.30.060 Change meter size Cost + 15% 13.30.050 Water system capital expansion/replacement charges Page 216 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 5 {DPK4915-7476-8777;1/13206.000014/} Inside City limits: 3/4-inch meter $360.00 13.25.010 1-inch meter $601.00 13.25.010 1-1/2-inch meter $1,198 13.25.010 2-inch meter $1,918 13.25.010 3-inch meter $3,599 13.25.010 4-inch meter $5,999 13.25.010 6-inch meter $11,995 13.25.010 8-inch meter $19,192 13.25.010 10-inch meter $27,591 13.25.010 Outside City limits: 3/4 – 10-inch meter 90% surcharge 13.25.020 Front footage (per foot): Residential: In and out City limits $20.00 13.45.020 Commercial: In and out City limits $25.00 13.45.020 Square Footage (per sq. ft.): Residential: In and out City limits $0.0388 13.45.020 Page 217 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 6 {DPK4915-7476-8777;1/13206.000014/} Commercial: In and out City limits $0.0426 13.45.020 Water rights acquisition fee – per acre foot $4,150.00 13.45.060(2) 21.05.120(2) Base water rights acquisition fee – per residential unit ($4,150.00 per acre foot x potable use factor .30) $1,245.00 13.15.030(1) Potable water irrigation fee (no irrigation water available) Equal to 50% of the area of the lot or parcel to be served expressed in acres or portion of acres x 3.5 acre feet of water x $4,150.00 (per acre foot) 13.15.030(1) Water rights transfer fee $1,000.00 13.15.030(5) Section 2. PMC Section 3.35.160 Water utility effective January 1, 2022 is hereby replaced as of March 1, 2026 and shall read as follows: Fee/Charge Reference 2026 2027 2028 2029 Inside city: Consumption – per 100 cubic feet: Residential/com mercial $1.35 $1.63 $1.97 $2.16 13.20.050 Bulk – per 1,000 gallons $2.22 $2.68 $3.24 $3.55 13.20.080 Page 218 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 7 {DPK4915-7476-8777;1/13206.000014/} Residential – single- family base fees: 3/4 and 5/8 inch – per month $31.48 $38.01 $45.90 $50.26 13.20.020 1 inch – per month $47.19 $56.98 $68.80 $75.34 13.20.020 Senior reduced/low income: 3/4 and 5/8 inch – per month $10.44 $12.61 $15.23 $16.68 3.65.150 1 inch – per month $15.77 $19.04 $22.99 $25.18 3.65.150 Commercial – base fees: 3/4 inch – per month $44.38 $53.58 $64.70 $70.85 13.20.030 1 inch – per month $64.88 $78.34 $94.60 $103.53 13.20.030 1-1/2 inch – per month $124.98 $150.91 $182.22 $199.53 13.20.030 2 inch – per month $200.42 $242.01 $292.22 $319.99 13.20.030 3 inch – per month $273.75 $330.56 $399.15 $437.07 13.20.030 4 inch – per month $394.44 $476.29 $575.12 $629.75 13.20.030 Page 219 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 8 {DPK4915-7476-8777;1/13206.000014/} 6 inch – per month $615.69 $743.45 $897.71 $983.00 13.20.030 8 inch – per month $853.22 $1,030.26 $1,244.04 $1,362.23 13.20.030 10 inch – per month $1226.49 $1480.99 $1,788.30 $1958.19 13.20.030 Fee/Charge Reference Fire hydrants: Meter rental: Refundable deposit Not to exceed 110% of Cost, as determined by the Director of Finance 13.20.080 Nonrefundable removal fee $30.00 13.20.080 Monthly base rental fee $62.00 Late payment and not returning meter after 48 hrs. (per day) $50.00 Hydrant rental – outside corporate limits, per year $20.00 13.20.070 Charges for water meters and services: Meter and service costs equal to average cost to City based on prior year 13.45.010 Move meter for owner Cost + 15% 13.30.060 Page 220 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 9 {DPK4915-7476-8777;1/13206.000014/} Change meter size Cost + 15% 13.30.050 Water system capital expansion/replacement charges effective through December 31, 2026 Inside City limits: 3/4-inch meter $360.00 13.25.010 1-inch meter $601.00 13.25.010 1-1/2-inch meter $1,198 13.25.010 2-inch meter $1,918 13.25.010 3-inch meter $3,599 13.25.010 4-inch meter $5,999 13.25.010 6-inch meter $11,995 13.25.010 8-inch meter $19,192 13.25.010 10-inch meter $27,591 13.25.010 Outside City limits: 3/4 – 10-inch meter 90% surcharge 13.25.020 Front footage (per foot): Residential: In and out City limits $20.00 13.45.020 Commercial: Page 221 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 10 {DPK4915-7476-8777;1/13206.000014/} In and out City limits $25.00 13.45.020 Square Footage (per sq. ft.): Residential: In and out City limits $0.0388 13.45.020 Commercial: In and out City limits $0.0426 13.45.020 Water system capital expansion/replacement charges effective January 1, 2027 Inside City limits: 3/4-inch meter $6,148 13.25.010 1-inch meter $10,267 13.25.010 1-1/2-inch meter $20,472 13.25.010 2-inch meter $32,767 13.25.010 3-inch meter $65,596 13.25.010 4-inch meter $100,392 13.25.010 6-inch meter $204,902 13.25.010 8-inch meter $327,856 13.25.010 10-inch meter $471,323 13.25.010 Water rights acquisition fee – per acre foot $4,150.00 13.45.060(2) 21.05.120(2) Page 222 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 11 {DPK4915-7476-8777;1/13206.000014/} Base water rights acquisition fee – per residential unit ($4,150.00 per acre foot x potable use factor .30) $1,245.00 13.15.030(1) Potable water irrigation fee (no irrigation water available) Equal to 50% of the area of the lot or parcel to be served expressed in acres or portion of acres x 3.5 acre feet of water x $4,150.00 (per acre foot) 13.15.030(1) Water rights transfer fee $1,000.00 13.15.030(5) Section 3. PMC Section 3.35.170 Sewer Utility is hereby amended and shall read as follows: 3.35.170 Sewer utility effective January 1, 2022 through February 28, 2026. Fee/Charge Reference 2021 2022 2023 2024 2025 2026 Inside city: Consumption – per 100 cubic feet over 1,000 cubic feet: Residential none Commercial $1.85 $1.85 $1.85 $1.92 $2.00 $2.08 13.50.030 Hotel/motel $1.85 $1.85 $1.85 $1.92 $2.00 $2.08 13.50.020 Page 223 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 12 {DPK4915-7476-8777;1/13206.000014/} Residential: Single-family one unit – per month $35.38 $35.38 $35.38 $36.80 $38.27 $39.80 Senior reduced/low income – per month $11.84 $11.84 $11.84 $12.31 $12.80 $13.31 3.65.150 Multifamily 1 – 4 units – per month $35.38 $35.38 $35.38 $36.80 $38.27 $39.80 13.50.010 Multifamily 5+ units – per month $28.53 $28.53 $28.53 $29.67 $30.86 $32.09 13.50.010 Commercial – base fee – per month $47.57 $47.57 $47.57 $49.47 $51.45 $53.51 13.50.030 Hotel/motel – base fee per unit/per month $7.50 $7.50 $7.50 $7.80 $8.11 $8.43 13.50.020 Outside City: Consumption – per 100 cubic feet over 1,000 cubic feet: Residential none Commercial 50% surcharge 13.50.070 Hotel/motel 50% surcharge 13.50.070 Residential: Single-family one unit – per month 50% surcharge 13.50.070 Page 224 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 13 {DPK4915-7476-8777;1/13206.000014/} Senior reduced/low income – per month 50% surcharge 13.50.070 Multifamily 1 – 4 units – per month 50% surcharge 13.50.070 Multifamily 5+ units – per month 50% surcharge 13.50.070 Commercial – base fee – per month 50% surcharge 13.50.070 Hotel/motel – base fee per unit/per month 50% surcharge 13.50.070 Fee/Charge Reference 2016 2017 2018 Sewer stub-out connection fee $4,000.00 13.60.030 Fee/Charge Reference Capital expansion: Residential: Inside City – Homes (per unit) $1,288.00 13.60.010 Inside City – Hotel/motel (per unit) $524.00 13.60.010 Outside City – Homes (per unit) 50% surcharge 13.60.020 Page 225 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 14 {DPK4915-7476-8777;1/13206.000014/} Commercial: Inside City: 3/4-inch meter $1,288.00 13.60.010 1-inch meter $1.936.00 13.60.010 1-1/2-inch meter $4.517.00 13.60.010 2-inch meter $7,097.00 13.60.010 3-inch meter $13,550.00 13.60.010 4-inch meter $21,291.00 13.60.010 6-inch meter $43,226.00 13.60.010 8-inch meter $69,032.00 13.60.010 10-inch meter $98,927.00 13.60.010 Outside City 3/4 – 10-inch meter 50% surcharge 13.60.020 Fee/Charge Reference Front footage (per foot): Residential: Page 226 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 15 {DPK4915-7476-8777;1/13206.000014/} In and out City limits $25.00 13.65.020 Commercial: In and out City limits $25.00 13.65.020 Square footage (per sq. ft.) Residential: In and out City limits $0.0468 13.65.020 Commercial: In and out City limits $0.0468 13.65.020 Section 4. PMC Section 3.35.170 Sewer Utility is hereby replaced as of March 1, 2026 and shall read as follows: 3.35.170 Sewer utility Fee/Charge Reference 2026 2027 2028 2029 Inside city: Consumption – per 100 cubic feet over 1,000 cubic feet: Residential none Page 227 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 16 {DPK4915-7476-8777;1/13206.000014/} Commercial $2.16 $2.33 $2.52 $2.72 13.50.030 Hotel/motel $2.16 $2.33 $2.52 $2.72 13.50.020 Residential: Single-family one unit – per month $41.33 $44.4 $48.21 $52.07 Senior reduced/low income – per month $13.82 $14.93 $16.12 $17.41 3.65.150 Multifamily 1 – 4 units – per month $41.33 $44.64 $48.21 $52.07 13.50.010 Multifamily 5+ units – per month $33.33 $36.00 $38.87 $41.98 13.50.010 Commercial – base fee – per month $55.57 $60.01 $64.81 $70.00 13.50.030 Hotel/motel – base fee per unit/per month $8.76 $9.46 $10.22 $11.03 13.50.020 Fee/Charge Reference Sewer stub-out connection fee $4,000.00 13.60.030 Fee/Charge Reference Sewer Capital expansion charges effective through December 31, 2026 Residential: Page 228 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 17 {DPK4915-7476-8777;1/13206.000014/} Inside City – Homes (per unit) $1,288.00 13.60.010 Inside City – Hotel/motel (per unit) $524.00 13.60.010 Outside City – Homes (per unit) 50% surcharge 13.60.020 Commercial: Inside City: 3/4-inch meter $1,288.00 13.60.010 1-inch meter $1.936.00 13.60.010 1-1/2-inch meter $4.517.00 13.60.010 2-inch meter $7,097.00 13.60.010 3-inch meter $13,550.00 13.60.010 4-inch meter $21,291.00 13.60.010 6-inch meter $43,226.00 13.60.010 8-inch meter $69,032.00 13.60.010 10-inch meter $98,927.00 13.60.010 Page 229 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 18 {DPK4915-7476-8777;1/13206.000014/} Outside City 3/4 – 10-inch meter 50% surcharge 13.60.020 Fee/Charge Reference Front footage (per foot): Residential: In and out City limits $25.00 13.65.020 Commercial: In and out City limits $25.00 13.65.020 Square footage (per sq. ft.) Residential: In and out City limits $0.0468 13.65.020 Commercial: In and out City limits $0.0468 13.65.020 Sewer capital expansion charges effective January 1, 2027 Residential Homes (per unit) $4,354 13.60.010 Page 230 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 19 {DPK4915-7476-8777;1/13206.000014/} Commercial Per ERU $4,354 13.60.010 and 13.60.020 Section 5. PMC Section 13.05.090 Payment of Capital Expansion/Replacement Charges- Commencement of Utility Billing is hereby amended and shall read as follows: 13.05.090 Payment of capital expansion/replacement charges – Commencement of utility billing. Capital Expansion/Replacement Charges – Eligibility and Utility Billing Commencement Water and sewer system capital expansion/replacement charges set forth respectively in PMC 13.25.010 and 13.60.010 shall not be accepted by the City unless the premises to be served are developed with an existing structure permitted for occupancy, or are in the process of development with a residential or commercial building as evidenced by a valid building permit. Acceptance of any such application shall cause the regular monthly utility billing established in this title to commence. Water and sewer system capital expansion and replacement charges, as set forth in PMC 13.25.010 and PMC 13.60.010, shall not be accepted by the City unless the premises to be served contain an existing structure permitted for occupancy, or are actively under development with a residential or commercial building, as evidenced by a valid building permit or utility permit. Acceptance of such charges shall cause regular monthly utility billing, as established in this title, to commence. Section 6. PMC Section 13.05.095 Capital Expansion/Replacement Charges- Calculation of Payment Timing is hereby added and shall read as follows: 13.05.095 Capital Expansion/Replacement Charges – Calculation and Payment Timing Water and sewer system capital expansion/replacement charges shall be calculated by the City pursuant to PMC Chapter 3.35 and shall be paid at permit issuance. Such charges shall not be calculated, paid, or collected prior to or at the time of permit application or submittal. For purposes of this section, “permit” means the applicable building permit or utility permit associated with the connection. Section 7. PMC Section 13.25.010 Water System Capital Expansion/Replacement Charges is hereby amended and shall read as follows: 13.25.010 Water system capital expansion/replacement charges. At the time of application for the installation of a customer service account within the City limits, a A fee as set forth in PMC Chapter 3.35 PMC and PMC 13.05.095, for each of the Page 231 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 20 {DPK4915-7476-8777;1/13206.000014/} following categories shall be paid to the City in all cases where the installation of a service line is required for the initiation of service: ¾-inch meter 1-inch meter 1 1/2-inch meter 2-inch meter 3-inch meter 4-inch meter 6-inch meter 8-inch meter 10-inch meter Existing [Ord. 3654 § 1, 2004; Ord. 3608 § 12, 2003; Ord. 2961 § 4, 1993; Ord. 2307 § 9, 1981; Code 1970 § 13.22.010.] Section 8. PMC Section 13.25.020 Water System Capital Expansion Replacement Charges Outside the City Limits is here by amended and shall read as follows: 13.25.020 Water system capital expansion/replacement charges outside the City limits. At the time of application for the installation of a customer service account located outside the City limits, a A water system capital expansion/replacement fee shall be paid to the City in all cases where the installation of a service line is required for the initiation of service. The water system capital expansion/replacement charges for water service outside the City limits shall be as set forth in PMC Chapter 3.35 PMC and PMC 13.05.095, for the following categories: ¾-inch meter 1-inch meter 1 1/2-inch meter 2-inch meter 3-inch meter 4-inch meter 6-inch meter 8-inch meter Page 232 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 21 {DPK4915-7476-8777;1/13206.000014/} 10-inch meter [Ord. 3654 § 1, 2004; Ord. 3608 § 13, 2003; Ord. 2961 § 5, 1993; Code 1970 § 13.22.020.] Section 9. PMC Section 13.45.010 New Service Lines Inside City is hereby amended and shall read as follows: 13.45.010 New service lines inside city. For each water connection there shall be a charge for the service and water meter, paid in accordance with PMC 13.05.095, in an amount equal to the average cost to the City of the service connection and installation, including the water meter covering both parts and labor. The average cost to the City shall be determined annually by the City Finance Director based upon the average cost to the City of such service connections and installations in the previous calendar year. A deposit sufficient to cover actual cost for meters shall be made in advance. That portion of the deposit, if any, in excess of average shall be refunded upon completion of the installation. In addition to the above charges, when it becomes necessary to open a paved street and replace pavement, a fee as set forth in PMC Chapter 3.35 PMC shall be charged. In those areas where it is not possible to determine asphalt patch quantities in advance, they will be computed from field measurements after completion of the work and will be billed to the applicant or deducted from the deposit. [Ord. 3608 § 17, 2003; Ord. 2997 § 1, 1994; Ord. 2961 § 6, 1993; Ord. 1784 § 1, 1976; Ord. 1759 § 1, 1976; Ord. 962 Art. IX, § 121, 1959; Code 1970 § 13.36.010; Code 1954 § 4-3.190.] Section 10. PMC Section 13.45.020, Connection to Existing Lines is hereby repealed. Section 11. PMC Section 13.45.040 Extension of Lines – Installation by Requesting Party is hereby amended and shall read as follows: 13.45.040 Extension of lines – Installation by requesting party. When an extension of the City system is required and such is requested of and agreed to by the City, and it is further agreed that the requesting party will extend the line(s), the requesting party shall install the line extension at their sole cost and expense, subject to the remaining provisions of this section. (1) The front footage charge under PMC 13.45.020 shall be waived for connection to the newly installed line by the party to the parcel(s) of property owned by the installing party. (1)(2) The installing party when connecting his or her parcel(s) of property to the extension shall pay square footage Water system capital expansion/replacement Page 233 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 22 {DPK4915-7476-8777;1/13206.000014/} charges, in accordance with PMC Chapter 3.35 and PMC 13.05.095, for the parcels(s) of the property served as provided under PMC 13.45.0240, except that, if the extension passes by one or more parcels of property under other ownership already connected to an existing line, there shall be a deduction in the amount of front footage and square footage charges previously paid for such parcels(s) of property at the time of their connection. In some cases the deduction may be sufficient to result in a cash payment from the City to the party making the extension. (2)(3) The City may enter into developer reimbursement agreement as provided in Chapter 14.25 PMC. [Ord. 4156, 2014; Ord. 3608 § 19, 2003; Ord. 2961 § 9, 1993; Code 1970 § 13.36.040.] Section 12. PMC Section 13.60.10 Sewer System Capital Expansion/Replacement Charges is hereby amended and shall read as follows: 13.60.010 Sewer system capital expansion/replacement charges. At the time of application fFor the connection to the public sewer inside the City limits, a sewer system capital expansion/replacement fee, as set forth in PMC Chapter 3.35 PMC and PMC 13.05.095, shall be paid to the City for the following: Dwelling units: A residential single unit property shall be assigned one ERU per unit as a sewer connection charge. A residential multiple unit property shall be assigned 0.75 ERU per unit. Hotel/motel units Commercial – The sanitary sewer system capital expansion/replacement charges, as set forth in PMC Chapter 3.35 PMC, shall be based on Equivalent Residential Unit. A nonresidential property shall have a calculated ERU pursuant to the flow calculation, but in no case shall the ERU be less than 0.75 ERU for any connection. The City shall make a determination of the number of ERUs applicable to the property, based on flow rate via fixture count, water meter size, or other industry standard method. The flow rate shall then determine the number of ERUs. For purposes of this determination, an ERU for service shall consist of a projected usage of 249 gallons per day of sewage flow. The Public Works director is authorized to adjust the sewer connection charge on a case-by-case basis based on the flow calculation, the specific characteristics of the development and/or principles of fairness. size of water service , unless special conditions apply. In which for each of the following: ¾-inch meter 1-inch meter 1½-inch meter Page 234 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 23 {DPK4915-7476-8777;1/13206.000014/} 2-inch meter 3-inch meter 4-inch meter 6-inch meter 8-inch meter [Ord. 3654 § 1, 2004; Ord. 3608 § 25, 2003; Ord. 3047 § 4, 1994; Ord. 2307 § 10, 1981; Code 1970 § 13.42.010.] Section 13. PMC Section 13.60.20 Sewer System Capital Expansion/Replacement System Fee Outside the City Limits is hereby amended and shall read as follows: 13.60.020 Sewer system capital expansion/replacement system fee outside the City limits. The fees established by the preceding section shall be applicable to sewer service outside the City limits with the addition of a surcharge, as set forth in Chapter PMC 3.35 PMC and PMC 13.05.095. [Ord. 3608 § 26, 2003; Ord. 2307 § 11, 1981; Code 1970 § 13.42.020.] Section 14. PMC Section 13.60.030 Sewer Stub-Out Connection Fee is hereby amended and shall read as follows: In addition to sewer connection permit fees required by this chapter, there is imposed upon the owners of property applying to connect to the City sanitary sewer system, a sewer stub-out connection fee in an amount, as set forth in PMC Chapter 3.35 PMC, for connection to any sanitary sewer stub-out installed and paid for by the City, and funded by the capital improvement fund. This charge shall not apply to sewer stub-outs whose construction has been funded by a local improvement district to which the property is subject, stub-outs constructed by the owner or its predecessor in interest when no prior existing stub-out exists. If no sewer stub-out is available for connection, the property owner, upon the approval of the Director of Public Works, may install a sewer stub-out from an existing sewer line for a building connection, except from this fee. [Ord. 3608 § 27, 2003; Ord. 3195 § 1, 1996; Code 1970 § 13.42.025.] Section 15. PMC Chapter 13.65 Sewer Extensions is hereby repealed. Section 16. PMC Section 13.70.120 Permit Required is hereby amended and shall read as follows: Page 235 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 24 {DPK4915-7476-8777;1/13206.000014/} No unauthorized person shall uncover, make any connections with or opening into, use, alter, or disturb any public sewer or appurtenance thereof without first obtaining a written permit from the Director and paying the fees and charges in accordance with PMC 13.05.95 and PMC Chapter 3.35 PMC. All connections shall meet the requirements of this chapter. [Ord. 3702 § 2, 2004; Code 1970 § 13A.52.110.] Section 17. PMC Section 13.70.130 Classification of Permit-Fees is hereby amended and shall read as follows: (1) There shall be two classes of building sewer and side sewer permits: (a) For residential and commercial service. (b) For service to establishments producing industrial wastes. (2) In either case, the owner or his agent shall make application on a special form furnished by the City. The permit and inspection fee shall be paid to the City, in accordance with PMC 13.05.095, at the time the application is filed. Any street cuts are required to be pursuant to permit as provided in PMC 12.24.070. [Ord. 3702 § 2, 2004; Code 1970 § 13A.52.120.] Section 18. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this ordinance. Section 19. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Section 20. Effective Date. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. Page 236 of 325 Ordinance – Amending PMC for Water & Sewer Connection Fees - 25 {DPK4915-7476-8777;1/13206.000014/} PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2026. _____________________________ Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PLLC City Clerk City Attorneys Published: _____________________________ Page 237 of 325 -27- Waterworks Utility Historical Operating Results 2020 2021 2022 2023 2024 Operating Revenues (1) Water Sales (less City tax) $ 10,639,412 $ 11,355,254 $ 11,964,375 $ 13,001,427 $ 14,253,326 Irrigation Sales 1,656,949 1,783,145 1,858,703 1,861,594 1,923,457 Sewer Sales 9,405,342 10,036,100 10,400,116 10,546,300 10,454,685 Process Water Reuse Sales 5,194,727 4,170,626 4,524,882 7,498,080 5,551,592 Stormwater Sales 1,936,365 2,070,306 2,203,255 2,072,198 2,107,598 Other Utility Charges (2) 802,427 783,138 954,071 961,270 1,312,020 Total Operating Revenues 29,635,222 30,198,569 31,905,402 35,940,869 35,602,678 Operating & Maintenance Expenses Salaries & Wages 3,984,668 4,015,954 4,817,364 5,743,786 6,224,551 Personnel Benefits (3) 1,414,194 497,962 1,444,187 1,777,076 1,771,459 Supplies 2,119,289 2,086,280 2,554,116 2,738,326 2,287,692 Services (less taxes) (1) 10,707,922 10,121,183 10,178,840 10,722,397 10,593,550 Total Operating Expenses 18,226,073 16,721,379 18,994,505 20,981,585 20,877,252 Net Operating Income 11,409,149 13,477,190 12,910,895 14,959,284 14,725,426 Non-Operating Revenues (4) Interest Income 188,493 197,458 247,332 1,009,643 1,482,404 Miscellaneous Income 343,770 89,881 115,406 833,643 73,122 Total Non-Operating Revenues 532,263 287,339 362,738 1,843,286 1,555,526 Capital Contributions – Cash $ 2,194,387 $ 3,262,342 $ 2,993,144 $ 2,462,793 $ 4,182,397 Net Revenue Available for Debt Service $ 14,135,799 $ 17,026,871 $ 16,266,777 $ 19,265,364 $ 20,463,349 Parity Bonds Debt Service (5) $ 4,176,102 $ 4,213,260 $ 3,843,812 $ 5,479,118 $ 6,775,629 Parity Bonds Debt Service Coverage (6) 3.38x 4.04x 4.23x 3.52x 3.02x Junior Lien Debt Service $ 806,798 $ 674,745 $ 780,101 $ 2,881,365 $ 3,126,712 Total Debt Service Coverage 2.84x 3.48x 3.52x 2.30x 2.07x Balance Available for Other Purposes $ 9,152,899 $ 12,138,866 $ 11,642,864 $ 10,904,880 $ 10,561,008 (1) Excludes revenue raised and used to pay interfund city taxes. (2) Includes one-time fees such as new connection, new meter, field service fees, penalties, lease, operating grants and internal service revenues. (3) In 2021, the pension accrual entry resulted in a negative expense making the personnel benefits total lower than reported in the past. (4) Excludes noncash capital contributions, gains/losses, capital grants, etc. (5) Excludes debt for prepaid maturities. (6) Calculated based on Annual Debt Service in the applicable year. Current bond covenants require coverage ratio of 1.25 times Maximum Annual Debt Service on Non-Assessment Bonds and coverage ratio of 1.0 times Maximum Annual Debt Service on Assessment Bonds. When the 2015 Bonds and 2017 Bonds are no longer outstanding, coverage under the same ratios will be calculated based on Annual Debt Service for the applicable year. Source: The City of Pasco. Page 238 of 325 Pasco Fee Notes Fee Notes Fee Notes Fee Notes $2,153 $2,153 $2,153 $2,366 $50 $0 $0 $1,420 $7 $7 $7 $7 $1,908 $1,158 Service Area 1 West $1,730 $3,195 $2,216 North TIF District $1,675 District 1 - Southridge Area $2,730 Traffic Impact Zone 1 $1,916 $0 No School Impact fee $0 No School Impact fee $0 No School Impact fee $0 No School Impact fee $6,333 $4,992 $6,619 $8,903 $258 $1,020 $660 Area Charge $300 $0.015/sq ft.$1,500 $2,000 $0.10/sq ft. Frontage $900 $9 Sq ft $1,500 $15 Per foot frontage fee W System Fees - 3/4 inch $745 $2,100 $6,617 Area Charge $3,000 $30 Per foot frontage fee $2,000 $0.10/sq ft. S System Fees $2,995 $4,060 DPW TOTAL $10,989 $6,745 $12,115 $15,337 Total Cost $17,323 $11,737 $18,734 $24,240 $4,800 Fee Comparison - Single Family Dwelling Fees Kennewick Richland West Richland Building Permit Fees $4,583 $6,148 Permit Fees Plan Review Fee State Fee Park impact fee Traffic impact fee School Impact Fee Building Total DPW Fees 3/4" meter fee Water - New Service - Residential Sewer - New Service - Residential Pa g e 2 3 9 o f 3 2 5 AGENDA REPORT FOR: City Council December 23, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Resolution No. 4681 - Authorization of a $14.727 Million Dollar DWSRF Loan -Contract No. DWL31572-0 I. ATTACHMENT(S): Resolution Exhibit A - DWSRF Loan Contract No. DWL 31572-0 Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4681, approving and authorizing the execution of a $14.727 million dollar Drinking Water State Revolving Fund Loan Contract No. DWL 31572-0 with the Washington State Department of Health for the Butterfield Water Treatment Plant Raw Water Pump Station and Electrical Improvements project. III. FISCAL IMPACT: Acceptance of this loan is only possible if increased rates for water have been approved. The increased rates would ensure that the utility can meet the obligations for repayment of the loan. The City has been awarded a $14.727 million dollar loan by the Washington State Department of Health (WSDOH) to fund 3 phases of the Butterfield Water Treatment Plant Improvements project. This loan is provided by WSDOH's Drinking Water State Revolving Fund (DWSRF) program. The loan has a 24 year term with an interest rate of 1.75%. Thirty-five percent (35%) of the principal loan will be forgiven, which is equivalent to a $5.15M grant. This loan package has been reviewed by legal counsel. IV. HISTORY AND FACTS BRIEF: Background Page 240 of 325 The Butterfield Water Treatment Plant (Butterfield WTP) was originally constructed in 1946 and produces approximately 75% of the City’s potable water supply that is critical for residential, commercial, industrial and fire suppression several undergone WTP has the Although use. Butterfield expansions and upgrades since its initial construction, most of the original core systems and components of the plant have been in operation for over 60 years. The Butterfield WTP Facility Plan (Plan) was completed in 2022 and evaluated a 20-year planning horizon. The development of the Plan involved a process which established performance goals for the plant, reviewed historical water quality issues, evaluated plant performance and condition, evaluated produced Capital a and treatment water for alternatives technologies, Improvements Plan that included repair and replacement projects for the Butterfield WTP. Impact The DWSRF Loan Program makes funds available to municipalities to repair, replace, or construct new water system infrastructure. Projects funded through this program are subject to both state and federal laws and regulations. The acceptance of this loan will allot funding to pay for 3 phases of the Butterfield projects Those project. Improvements Plant Treatment Water include: Raw Water Pump Station and Electrical improvements, Raw Water Permanganate System, and WTP Piloting. These improvements will bring reliability, additional treatment, and necessary infrastructure replacement to the Butterfield Water Treatment Plant. V. DISCUSSION: Recommendation Contract Loan interest low- the No. approval the recommends Staff of DWL31572-0 from the Washington State Department of Health Drinking Water State Revolving Fund program for the construction of the Butterfield Water Treatment Plant's Raw Water Pump Station and Electrical Improvements, Raw Water Permanganate System, and WTP Piloting components of the project. Constraints The Washington State Department of Health has given the City 60 days to sign and agree to the terms of the loan. If not, the offer will be rescinded. This item was brought to Council during the November 17th regular meeting at the same time as the utility rate adjustment for water and sewer. The repayment plan for this loan is directly tied to the utility rate adjustment passing. DOH agreed to provide the City a time extension into late January to allow for that decision to be made first. Page 241 of 325 Next Steps If approved, City staff will proceed on schedule with delivery of the projects stated above. Alternatives Council may reject the loan. Rejecting the loan at this time would mean forfeiting it. This action may have future funding award implications. An alternative funding mechanism for the project will be needed, and/or the project may need to be placed on hold. Page 242 of 325 RESOLUTION NO. 4681 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, APPROVING AND AUTHORIZING THE EXECUTION OF A $14.727 MILLION DOLLAR DRINKING WATER STATE REVOLVING FUND LOAN CONTRACT NO. DWL31572-0 WITH THE WASHINGTON STATE DEPARTMENT OF HEALTH FOR THE BUTTERFIELD WATER TREATMENT PLANT RAW WATER PUMP STATION AND ELECTRICAL IMPROVEMENTS PROJECT. WHEREAS, the Butterfield Water Treatment Plant (the “Butterfield WTP”), originally built in 1946, is nearing the end of its forecasted service life, and a phased replacement of the facility over the next 20 years is proposed; and WHEREAS, the City’s Butterfield Water Treatment Plant Facilities Plan (September 2022) identified improvements to the Butterfield WTP that are needed to carry out the phased replacement of the facility; and WHEREAS, the Raw Water Pump Station and Electrical Improvements phase of those improvements is currently at 60% design, and the accomplishment of this phase of the improvements will add redundancy and reliability to the Butterfield WTP and lower its maintenance costs; and WHEREAS, to help fund these improvements the City applied for and received approval from the Washington State Department of Health (“WSDOH”) for a Drinking Water State Revolving Fund (“DWSRF”) loan from WSDOH in the principal amount of $14,727,000 with a term of 24 years and bearing interest at a rate of 1.75% (the “Loan”); and WHEREAS, the Loan will be repaid from revenues of the City’s Waterworks Utility; and WHEREAS, to make Loan funds available to the City, the City is required to execute and deliver a Loan Contract with WSDOH in the form attached to this resolution as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the DWSRF Loan Contract No. DWL31572-0 between the City of Pasco and the Washington State Department of Health, a copy of which is attached hereto and incorporated herein by this reference as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is authorized and directed to execute and deliver DWSRF Loan Contract No. DWL31572-0 on behalf of the City to the Washington State Department. Page 243 of 325 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 January, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Ogden Murphy Wallace, PPC City Clerk City Attorney Page 244 of 325 11/03/2025 City of Pasco Harold L. Stewart II, City Manager 525 N 3rd Ave Pasco, WA 99301 Stewarth@pasco-wa.gov RE: Loan Contract Number: DWL31572-0 Dear Mr. Stewart; Enclosed is the Drinking Water State Revolving Fund Loan Contract Number identified above for your signature. The Loan Contract details the terms and conditions that will govern the agreement between us, which includes the project's Scope of Work as a formal attachment. Failure to return the contracts within 60 calendar days of the date of this letter may result in your loan offer being withdrawn. Review, print, and sign the document. Once signatures are obtained, please scan and return by email to your DOH contracts representative or print and sign a hard copy, and return the originals to us for full execution. Please note that the U.S. Environmental Protection Agency is the funding source for this program and the Catalog of Federal Domestic Assistance (CFDA) number is 66.468. Consequently, the loan funds are federal and subject to both state and federal requirements. A non-refundable one-percent loan administration fee will be collected at contract execution (If applicable), including any subsequent amendments where funds are added. The loan amount may be modified to include an amount sufficient to cover the one-percent loan administration fee. In most cases, the fee will be collected in full at contract execution. Please review the terms and conditions of the Loan Contract and all attachments carefully for details. A requirement of the DWSRF program is that you must maintain updated project records and yearly renewal of your registration in the System for Award Management at www.sam.gov. Another requirement of the DWSRF program is that all entities are required to verify that the federal government has not suspended or debarred them from receiving federal funds. This includes, but is not limited to, project contractors, subcontractors, engineers, architects, consultants, and equipment vendors. The Exclusion Report can be accessed at www.sam.gov. Failure to provide this required certification may result in termination of your loan contract. After the Loan Contracts have been signed by the Department or its designee, one fully executed original will be returned to you for your files. Instructions for drawing the loan funds will be returned to you with the executed Loan Contract, as well as the necessary forms. The Loan Contract specifies that draws may be made for costs that have been incurred within the contract period of performance, and which have supporting documentation such as receipts or bills. We are looking forward to working with you over the course of this project. If you have any questions about this Loan Contract, please contact me. Sincerely, Rachel Paris DOH Contract Manager (360) 236-4294 Rachel.Paris@DOH.WA.GOV Enclosures: ATTACHMENT I: SCOPE OF WORK (PROJECT) ATTACHMENT II: ATTORNEY'S CERTIFICATION ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS ATTACHMENT IV: DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ATTACHMENT V: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS ATTACHMENT VI: DWSRF ELIGIBLE PROJECT COSTS ATTACHMENT VII: LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Page 245 of 325 Version History Date Revision(s) Version 05-15-2018 Original - developed via a team of the DWSRF Grant and Loan Unit Supervisor, the DOH Office of Drinking Water Finance Director, the DOH Office of Contracts and Procurement Technical and Policy Advisor, and DOH’s Financial Services Assistant Attorney General. 1 09-15-2025 DOH’s Office of Drinking Water worked with AHD Assistant Attorney General to modify template and incorporate up-to-date provisions for public works projects performed in the State of Washington. 2 Washington State Department of Health DWSRF Municipal Loan Boilerplate September 2025 Page 246 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 1 of 41 DWSRF Loan Contract (Municipal) v1 1. CONTRACT FACE SHEET #2024-4372 Loan Number: DWL31572-0 Washington State Department of Health (DOH) Drinking Water State Revolving Fund (DWSRF) Municipal 1. Borrower 2. Borrower Doing Business As (optional) City of Pasco 525 N 3RD AVE PASCO, WA 99301 3. Borrower Type Construction Loan 4. Borrower’s Statutory Authority 5. Borrower Contract Manager Information 6. DOH Contract Manager Harold L. Stewart II City Manager (509) 544-3060 Stewarth@pasco-wa.gov Rachel Paris P.O. Box 47822 Olympia, WA 98504-7822 (360) 236-4294 Rachel.Paris@doh.wa.gov 7. Project Name Butterfield Water Treatment Plant Improvements 8. Loan Amount: $14,727,000 9. Funding Source 10. Start Date 11. End Date Loan Fee: $0.00 Interest Rate: 1.75% Federal: State: Other: Date of Last Signature 10/01/2049 12. Federal Funding Agency Environmental Protection Agency Catalogue of Federal Assistance (CFDA) Number 66.468 13. Borrower Tax ID # 91-1983815 14. SWV # 0007164-00 15. Borrower UBI # 113-000-052 16. Borrower UEI# VJX8X4J5TL95 17. Contract Purpose DOH and the party identified above as Borrower (BORROWER), have entered into this loan agreement (CONTRACT) to fund the project identified above and further described in Attachment I (Scope of Work) (PROJECT) that furthers the goals and objectives of the DOH DWSRF Program (PROGRAM). The Project will be done by the BORROWER as described in the Attachment I (Scope of Work) and this Contract. The rights and obligations of the parties are governed by this Contract and the following documents are incorporated by reference: (1) General Terms and Conditions including Declarations; (2) Attachment I–Scope of Work; (3) Attachment II– Attorney's Certification; (4) Attachment III–Federal and State Requirements; (5) Attachment IV–Disadvantaged Business Enterprise Requirements; (6) Attachment V–Certification Regarding Debarment, Suspension, and Other Responsibility Matters; (7) Attachment VI–DWSRF Eligible Project Costs; and (8) Attachment VII–Labor Standard Provisions for Subrecipients that are Governmental Entities. By signing below, the parties acknowledge and accept the terms of this Contract. AUTHORIZED REPRESESENTATIVE OF BORROWER AUTHORIZED REPRESENTATIVE OF DOH Signature Print Name Title Date Signature Print Name Title Date Page 247 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 2 of 41 DWSRF Loan Contract (Municipal) v1 TEMPLATE APPROVED AS TO FORM ONLY Lisa Koperski, AAG Signature on File Sept. 16, 2025 Date Page 248 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 3 of 41 DWSRF Loan Contract (Municipal) v1 2. TABLE OF CONTENTS 1. CONTRACT FACE SHEET 2. TABLE OF CONTENTS 3. DECLARATIONS 3.1. BORROWER INFORMATION 3.2. PROJECT INFORMATION (PROJECT) 3.3. CONTRACT COMMUNICATION 3.4. LOAN INFORMATION 3.5. FUNDING INFORMATION 3.6. SPECIAL TERMS AND CONDITIONS 4. GENERAL TERMS AND CONDITIONS 4.1. AUTHORITY 4.2. FULL AGREEMENT 4.3. ORDER OF PRECEDENCE 4.4. LOAN AMOUNT 4.5. LOAN FEE 4.6. LOAN TERM 4.7. INTEREST RATE 4.8. LOAN FORGIVENESS 4.9. RELEASE OF LOAN FUNDS AND REQUIRED DOCUMENTATION 4.10. TIME OF PERFORMANCE 4.11. PROJECT COMPLETION AMENDMENT AND THE PROJECT COMPLETION REPORT 4.12. LOAN PAYMENTS 4.13. LOAN DEFAULT 4.14. LOAN SECURITY 4.15. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS AND WAIVERS 4.16. BUILD AMERICA, BUY AMERICA 4.17. ATTORNEY’S FEES 4.18. BONUS AND COMMISSION PAYMENTS NOT ALLOWED 4.19. COMPLIANCE 4.20. DISPUTES 4.21. ELIGIBLE PROJECT COSTS 4.22. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM 4.23. FINANCIAL AUDIT 4.24. GOVERNING LAW AND VENUE 4.25. HISTORICAL AND CULTURAL REQUIREMENTS 4.26. INDEMNIFICATION 4.27. INDUSTRIAL INSURANCE REQUIREMENTS Page 249 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 4 of 41 DWSRF Loan Contract (Municipal) v1 4.28. LITIGATION 4.29. NONDISCRIMINATION 4.30. PREVAILING WAGE 4.31. PROCUREMENT 4.32. PROHIBITION STATEMENT 4.33. PROJECT SIGNS 4.34. PUBLICITY 4.35. RATES AND RESERVES 4.36. RECAPTURE 4.37. RECORDKEEPING AND ACCESS TO RECORDS 4.38. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT (SAM) 4.39. SEVERABILITY 4.40. SUBCONTRACTING 4.41. SURVIVAL 4.42. TERMINATION FOR CAUSE 4.43. TERMINATION OR SUSPENSION FOR CONVENIENCE 4.44. TERMINATION PROCEDURES 4.45. WORK HOURS AND SAFETY STANDARDS ATTACHMENT I SCOPE OF WORK (PROJECT) ATTACHMENT II ATTORNEY’S CERTIFICATION ATTACHMENT III FEDERAL AND STATE REQUIREMENTS ATTACHMENT IV DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ATTACHMENT V CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS ATTACHMENT VI DWSRF ELIGIBLE PROJECT COSTS ATTACHMENT VII LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Page 250 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 5 of 41 DWSRF Loan Contract (Municipal) v1 3. DECLARATIONS 3.1. BORROWER INFORMATION Legal Name: City of Pasco Loan Number: Application number DWL31572-0 #2024-4372 Award Year: 2025 State Wide Vendor Number: 0007164-00 3.2. PROJECT INFORMATION (PROJECT) Project Title: Butterfield Water Treatment Plant Project Location (City or County): Franklin Project State: WA Project Zip Code: 99301 Project Scope of Work Attachment I attached hereto and incorporated by reference. 3.3. CONTRACT COMMUNICATION Communications regarding CONTRACT performance is delegated by each party to its Contract Manager. Either party may change its Contract Manager by express notice to the other party. Either party may identify on an as needed basis an alternate Contract Manager to serve during the stated temporary absence of its primary Contract Manager. Notices between the parties regarding Contract performance must be provided by written communication to the other party’s Contract Manager. Written communication includes email but not voice mail. Notices are presumed received by the other party’s Contract Manager upon evidence of delivery between the hours of 8:00 am to 5:00 pm except for state holidays and weekends. 3.4. LOAN INFORMATION Loan Amount: $14,727,000.00 Loan Fee (Included in loan amount if applicable): 0% Principal Loan Forgiveness %: 35% Loan Term: 24 years Interest Rate: 1.75% Payment Month(s): October 1st Annually Earliest Date for Construction Reimbursement: One year prior to contract execution date Time of Performance: Notice to Proceed: 48 months from Contract start date (date of last signature) to Project Completion date. 18 months from Contract start date (date of last signature) 3.5. FUNDING INFORMATION Total Funds from BORROWER: To be determined Source(s) of Funds from Borrower, with assigned amounts per source: To be determined Total State Funds: To be determined Total Amount of Federal Award (as applicable): To be determined Total Amount of Loan: $14,727,000.00 Federal Award Date: To be determined Federal Award ID # (FAIN): Amount of Federal Funds Obligated by this Action: To be determined To be determined 3.6. SPECIAL TERMS AND CONDITIONS N/A Page 251 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 6 of 41 DWSRF Loan Contract (Municipal) v1 4. GENERAL TERMS AND CONDITIONS DRINKING WATER STATE REVOLVING FUND (MUNICIPAL) 4.1. AUTHORITY Acting under the authority of Section 1452 of the Safe Drinking Water Act (SDWA) Section 130, RCW 39.34, RCW 43.70.040, and RCW 70.119A.170 the Washington State Department of Health (DOH) has awarded BORROWER identified on the Face Sheet of this CONTRACT a Drinking Water State Revolving Fund Loan (LOAN) for the PROJECT defined on the Face Sheet of this CONTRACT. Under this CONTRACT, BORROWER is a sub-recipient of funds provided by the United States Environmental Protection Agency (EPA), CFDA Number 66.468, Safe Drinking Water State Revolving Fund. In some CONTRACT attachments, DOH is referred to as “Lender” and BORROWER is referred to as “Contractor.” DOH and BORROWER are individually a “party” and, collectively, the “parties.” 4.2. FULL AGREEMENT This CONTRACT contains all the terms and conditions agreed upon by the parties and is the full agreement of the parties. No other understandings, oral or otherwise, regarding the subject matter of this CONTRACT will be deemed to exist or to bind any of the parties hereto. 4.3. ORDER OF PRECEDENCE In the event of an inconsistency in this CONTRACT, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: The order of precedence for terms and conditions under categories B and C is subject to the proviso that when a contract term or condition appears in more than one contract document, the more specific contract term or condition shall control if the different contract provisions cannot be harmonized. A. Applicable , state and federal statutes B. Applicable local, state, and federal regulations C. CONTRACT amendments (if any) D. The Declarations Page of the CONTRACT E. The General Terms and Conditions of the CONTRACT F. Attachment I of the CONTRACT G. Attachment II of the CONTRACT H. Attachment III of the CONTRACT I. Attachment IV of the CONTRACT J. Attachment V of the CONTRACT K. Attachment VI of the CONTRACT L. Attachment VII of the CONTRACT 4.4. LOAN AMOUNT DOH, using funds from the Drinking Water Assistance Account, will loan BORROWER a sum not to exceed the amount shown as “Loan Amount” in the Declarations (LOAN AMOUNT). The LOAN AMOUNT will not exceed 100% of the actual eligible PROJECT costs (ELIGIBLE PROJECT COSTS). The parties understand and agree that the LOAN AMOUNT does not include the LOAN FEE which will be charged in accordance with Section 4.5 (Loan Fee) below. 4.5. LOAN FEE If DOH assessed a “Loan Fee” in the Declarations (LOAN FEE), then: (a) the LOAN FEE will be the LOAN FEE shown in the Declarations; (b) the LOAN FEE will be 1% of the loan request; and (c) the LOAN FEE will not be Page 252 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 7 of 41 DWSRF Loan Contract (Municipal) v1 reduced, regardless of the final LOAN AMOUNT at PROJECT completion. If the LOAN FEE applies and the total LOAN AMOUNT is increased through CONTRACT amendment, then DOH will assess an additional LOAN FEE equal to 1% of the additional LOAN AMOUNT. LOAN FEES are non-refundable. 4.6. LOAN TERM Unless changed through a CONTRACT amendment, the LOAN TERM will not exceed the period of time shown in the Declarations. The repayment period for DOH subsidized loans is 24 years from this CONTRACT’s start date. The repayment period for non-DOH subsidized loans is 20 years from this CONTRACT’s start date. 4.7. INTEREST RATE The interest rate is stated in the Declarations. Interest is per annum on the outstanding principal balance and starts to accrue from the date DOH releases any or all of the Loan Amount (LOAN FUNDS) to BORROWER in accordance with applicable law and PROGRAM AND DOH policies. 4.8. LOAN FORGIVENESS If the LOAN qualifies for LOAN Forgiveness, then the percent of the LOAN balance that DOH will forgive at PROJECT completion is stated in the Declarations. DOH calculates the amount forgiven when DOH approves the BORROWER’s Project Completion Report. The amount forgiven will be based on either the LOAN AMOUNT or BORROWER’s ELIGIBLE PROJECT COSTS, whichever is less, and accrued interest. 4.9. RELEASE OF LOAN FUNDS AND REQUIRED DOCUMENTATION DOH will release LOAN FUNDS to BORROWER to reimburse BORROWER for ELIGIBLE PROJECT COSTS. To request reimbursement, BORROWER must submit a signed and completed invoice using a form provided by DOH. The invoice must reference the PROJECT activity performed, and include supporting documentation such as bills, invoices, receipts, and documentation of compliance with CONTRACT requirements as requested by DOH. The invoice must be signed by an official of BORROWER with authority to bind BORROWER. Invoices must also include a report of the progress of the PROJECT made since the last invoice, and the PROJECT status to date. DOH will not release funds until the PROJECT status report and documentation are approved by DOH. Approval will not be unreasonably withheld or delayed. After approving the invoice, documentation, and PROJECT status report, DOH will release funds to BORROWER within 30 days, if BORROWER is not in alleged or actual breach of any CONTRACT with a Washington state agency. DOH will withhold 10% of LOAN FUNDS until DOH confirms that BORROWER has successfully completed all steps for PROJECT COMPLETION. The 10% holdback will be available to BORROWER as part of the last LOAN disbursement. 4.10. TIME OF PERFORMANCE BORROWER will begin the activities in the PROJECT within 30 calendar days of the CONTRACT start date. BORROWER will issue a ‘Notice to Proceed’, after the formal award of a construction contract, within 18 months of the CONTRACT start date. BORROWER must reach PROJECT COMPLETION within the Time of Performance set forth in the Declarations (TIME OF PERFORMANCE). If there are extenuating circumstances, BORROWER may request, in writing, at least 90 calendar days prior to the PROJECT COMPLETION that DOH extend the deadline for PROJECT COMPLETION. At its discretion, DOH may issue an extension. DOH’s decision is final and not subject to the dispute clause. If BORROWER does not meet the requirements of this Section, it is a material breach of CONTRACT, and DOH may terminate or suspend this CONTRACT immediately and for cause if DOH so desires. Page 253 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 8 of 41 DWSRF Loan Contract (Municipal) v1 4.11. PROJECT COMPLETION AMENDMENT AND THE PROJECT COMPLETION REPORT The PROJECT Completion Amendment determines the final LOAN AMOUNT and LOAN TERM. When activities in the PROJECT are complete, BORROWER will start the process for the PROJECT Completion Amendment by sending DOH the PROJECT Completion Report. In the PROJECT Completion Report, BORROWER will provide the following information to DOH: A. A statement of the actual dollar amount spent, from all fund sources, to complete the PROJECT. B. A statement that all ELIGIBLE PROJECT COSTS have been incurred. Costs are incurred when goods and services are received and/or contracted work is performed. C. Evidence showing BORROWER’S compliance with financial the audit requirements of this CONTRACT. D. An invoice for the remaining ELIGIBLE PROJECT COSTS. E. Documentation of BORROWER’s compliance with National Historic Preservation Act of 1966, 54 U.S.C. Subtitle III, Public Law 89-665, as amended (including, without limitation, by Public Law 96-515) (NHPA or National Historic Preservation Act). 4.12. LOAN PAYMENTS BORROWER must begin repaying the LOAN no later than 1 year after the CONTRACT start date. Payments are due on the first day of the month(s) shown as the PAYMENT MONTH(S) in the Declarations. Payments are principal and interest accrued up to the PAYMENT MONTH(S). BORROWER can repay in full the LOAN balance, including fees and repayment of LOAN FUNDS for ineligible project costs (if any), at any time or make accelerated payments without penalty. The final payment must be on or before the end of the LOAN TERM. Additionally, BORROWER must either have a dedicated general ledger account for the LOAN AMOUNT or a dedicated bank account for the LOAN AMOUNT to ensure that there is no co-mingling of the LOAN AMOUNT with other municipality resources. 4.13. LOAN DEFAULT DOH must receive BORROWER’S payment within 30 calendar days of the due date. Late payments are delinquent and assessed a monthly penalty on the 1st day past the due date. The penalty will be at the rate set forth by DOH that accords with applicable law but which the parties agree and understand may be 1% of the late payment amount per month. Penalty and fees accrue interest at the rate stated as LOAN INTEREST in the Declarations. DOH may notify any other entity, creditors, or potential creditors of BORROWER’s delinquency. BORROWER is responsible for all attorney fees and costs incurred by DOH in any action taken to enforce its rights under this Section, including in any alternative dispute resolution proceeding. 4.14. LOAN SECURITY “Loan Security” (LOAN SECURITY) is only required if identified in the Declarations. If LOAN SECURITY is required under the CONTRACT, then: (a) BORROWER will assist DOH in completing and filing all financing statements or other collateral documentation reasonably required by DOH; and (b) BORROWER will execute all assignments, security agreements, and financing statements necessary to establish, perfect, and maintain the security interests of DOH. Nothing in this Section releases BORROWER from the obligation to make LOAN PAYMENTS when due, and to adjust rates, fees, or surcharges as necessary to meet its obligations under this CONTRACT. Notwithstanding this, in its sole discretion and if allowed under the EPA regulations relevant to this Contract, DOH may subordinate its LOAN security to BORROWER’s obligations under existing or future bonds and notes. 4.15. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS, AND WAIVERS Any amendments, modifications, assignments, and/or waivers to any of the terms and conditions of this CONTRACT supersede those terms as found in the original CONTRACT and will not be binding on the parties unless they are in writing and signed by representatives authorized to bind each of the parties. Only the authorized representative or their designee (where delegation is made prior to action) has the express, implied, or apparent Page 254 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 9 of 41 DWSRF Loan Contract (Municipal) v1 authority to enter into, alter, amend, assign, modify, or waive any terms, clauses, or conditions of this CONTRACT. Additionally, neither this CONTRACT nor any Claim arising under this CONTRACT, will be transferred or assigned by the BORROWER without prior written consent of DOH. Neither this CONTRACT nor any Claim arising under it may be transferred or assigned by BORROWER without DOH’s prior written consent. During the LOAN TERM, DOH must approve in advance, any change in ownership of the water system(s) improved with LOAN FUNDS. DOH may require the LOAN, including LOAN FEES and/or ineligible project costs (if any) be paid in full as a condition of approval. Nothing in this CONTRACT (including, without limitation, terms, conditions, assurances, and certifications) may be waived and/or modified unless approved in writing and signed by an authorized representative of DOH. No waiver of any default or breach is implied from any failure to take action upon such default or breach if the default of breach persists or repeats. Waiver of any default or breach will not be deemed to be a waiver of any subsequent default or breach. 4.16. BUILD AMERICA, BUY AMERICA (IF APPLICABLE) None of the LOAN FUNDS under this CONTRACT will be used for the construction, alteration, maintenance, or repair of a public water system or treatment works unless all of the iron and steel, manufactured products, and construction materials used in the project are produced in the United States including, without limitation, iron and steel, manufactured products, and construction materials in accordance with the Build America, Buy America, Pub. L. No. 117-58, §§ 70901-52 (BABA) Requirements and/or any successor legislation. BORROWER hereby represents and warrants to and for the benefit of DOH and any other funding authority and/or source that BORROWER understands this obligation and the requirements of BABA and will use the LOAN FUNDS in accordance with the requirements set forth in this Section. Notwithstanding this, an authorized representative of DOH may waive this requirement in writing if: A. Compliance would be inconsistent with the public interest; or B. The particular products are not produced in the United States in sufficient and reasonably available quantities and are not of a satisfactory quality; or C. Inclusion of products produced in the United States will increase the cost of the overall project by more than 25%; or D. A waiver is approved by the Environmental Protection Agency (EPA). BORROWER must submit any such waiver request to DOH, which will then submit the waiver request to EPA. The full text of the Build America, Buy America provision can be found under The Infrastructure Investment and Jobs Act (IIJA), Pub. L. No. 117-58, which includes BABA,. 4.17. ATTORNEYS’ FEES Unless expressly permitted under another Section of the CONTRACT, each party agrees to bear its own attorneys’ fees and costs for litigation or other action brought to enforce the CONTRACT terms and conditions. 4.18. PROHIBITION AGAINST PAYMENT OF BONUS AND COMMISSION LOAN FUNDS provided under this CONTRACT will not be used in payment of any bonus or commission for the purpose of obtaining approval of the loan application or any other approval under this CONTRACT. This Section does not prohibit paying reasonable fees for bona fide technical consultants, managerial, or other such services, if payment is for ELIGIBLE PROJECT COSTS. For the avoidance of doubt, no actual solicitation costs can be paid for LOAN FUNDS received under this CONTRACT. 4.19. COMPLIANCE BORROWER will comply with all applicable federal, state, and local laws, requirements, codes, regulations, policies, and ordinances of local and state and federal governments, as now or hereafter amended (including, without limitation, for the design, implementation, and administration) of the PROJECT and this CONTRACT, including, without limitation, those stated in the CONTRACT attachments. BORROWER will provide DOH with Page 255 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 10 of 41 DWSRF Loan Contract (Municipal) v1 documentation of compliance as soon as practicable if requested by DOH or its agents. In the event of BORROWER’s alleged or actual noncompliance with any part of this CONTRACT, DOH may suspend all or part of the CONTRACT, withhold payments, and/or prohibit BORROWER from incurring additional obligations of LOAN FUNDS during the investigation and pending corrective action by BORROWER, or a decision by DOH to terminate or suspend the CONTRACT. 4.20. CONFIDENTIALITY/SAFEGUARDING OF INFORMATION A. “Confidential Information” as used in this Section includes: i. All material provided to the BORROWER by DOH that is designated as “confidential” by DOH; and ii. All material produced by the BORROWER that is designated as “confidential” by DOH; and iii. All Personal Information in the possession of the BORROWER that may not be disclosed under state or federal law. B. The BORROWER will comply with all state and federal laws related to the use, sharing, transfer, sale, or disclosure of Confidential Information. The BORROWER will use Confidential Information solely for the purposes of this CONTRACT and will not use, share, transfer, sell, or disclose any Confidential Information to any third party except with the prior written consent of DOH or as may be required by law. The BORROWER will take all necessary steps to assure that Confidential Information is safeguarded to prevent unauthorized use, sharing, transfer, sale, or disclosure of Confidential Information or violation of any related state or federal laws. Upon request, the BORROWER will provide DOH with its policies and procedures on confidentiality. DOH may require changes to such policies and procedures as they apply to this CONTRACT whenever DOH reasonably determines that changes are necessary to prevent unauthorized disclosures. The BORROWER will make the changes within the time period specified by DOH. Upon request, the BORROWER will immediately return to DOH any Confidential Information that DOH reasonably determines has not been adequately protected by the BORROWER against unauthorized disclosure. C. Unauthorized Use or Disclosure. The BORROWER will notify DOH within 5 working days of BORROWER’s discovery of any unauthorized use or disclosure of any confidential information and will take necessary steps to mitigate the harmful effects of such use or disclosure. 4.21. DISPUTES Except as otherwise provided in this CONTRACT, when a dispute arises between the parties that cannot be solved by direct negotiation (Dispute), either party may request a Dispute hearing with the Director of the Office of Drinking Water (Director), who may designate a neutral person to decide the Dispute. The parties will be equally responsible for any reasonable costs and fees incurred by the neutral person. The request for a Dispute hearing must: A. Be in writing; B. State the disputed issues; C. State the relative positions of the parties; D. State BORROWER's name, address, and CONTRACT number involved in or related to the Dispute; E. Provide contact information for the requester’s representative; and F. Be mailed to the Director and the other party’s (Respondent’s) Contract Manager within 3 working days after the parties agree that they cannot resolve the Dispute. The Respondent will send a written answer to the requestor’s statement to both the Director or the Director’s designee and the requestor within 5 working days. In the alternative, the parties can agree to submit a mutual request to the Director, which should include each party’s response to the other party’s characterization of the Dispute. The Director or Director’s designee will review the written statements and reply in writing to both parties within 10 working days. The Director or Director’s designee may extend this period if necessary, by notifying the parties. The decision on the dispute is non-binding and will not be admissible in any succeeding judicial or quasi-judicial proceeding. This non-binding Dispute process must precede any action in a judicial or quasi-judicial tribunal. Nothing in this CONTRACT limits the parties from using any mutually acceptable alternate dispute resolution (ADR) method in Page 256 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 11 of 41 DWSRF Loan Contract (Municipal) v1 addition to or instead of the Dispute hearing procedure outlined above. 4.22. ELIGIBLE PROJECT COSTS BORROWER will comply with all obligations set forth under this CONTRACT including, without limitation, Attachment VI-DWSRF Eligible Project Costs and is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its contractors and/or subcontractors. The purchase of any land necessary for the PROJECT must be included in the PROJECT and be documented with an appraisal or equivalent market evaluation, if approved by DOH, and a valid purchase and sale agreement. Construction expenses incurred after the date shown as earliest date for construction reimbursement in the Declarations are eligible for reimbursement. Requests for reimbursements for costs related to construction activities will not be accepted until BORROWER has met the following conditions: A. Completed the State Environmental Review Process (SEPA Review under RCW 43.21C); B. Complied with all provisions of the National Historic Preservation Act; C. Complied with Prevailing Wage requirements; D. Received approval from DOH of the PROJECT report and related construction documents for all applicable activities described in the PROJECT; and E. Complied with any other LOAN conditions required by DOH. For the avoidance of doubt, BORROWER cannot use LOAN FUNDS for any expenses charged by BORROWER against any other contract, subcontract, or source of funds. If DOH reimburses BORROWER for costs that are later determined by DOH to be ineligible, BORROWER must repay these funds to DOH no later than when the BORROWER returns the PROJECT Completion Amendment to DOH. Prior to final completion, DOH may withhold payment for such costs as allowed under Section 4.36 (Recapture). Any such repayment may be subject to interest on any remaining balance, at the rate determined by state regulations and as allowed under state and federal law. 4.23. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM BORROWER warrants that BORROWER has not and will not submit to DOH any information that is false, incorrect, or incomplete. BORROWER understands and agrees that providing false, fictitious, or misleading information to a state agency or otherwise receiving and attesting to PROGRAM benefits that you are not entitled to is a violation of applicable state law. Such violations may be a criminal violation under state law, including, without limitation, RCW 9A.56.020 (Theft defined), RCW 9A.56.030 (Theft in the 1st degree), RCW 9A.56.040 (Theft in the 2nd degree), or other applicable statutes. Such violations for the receipt and disbursements of LOAN FUNDS may also result in civil penalties or administrative fines. The parties understand and agree that DOH may pursue all applicable remedies for violations by BORROWER under this Section. 4.24. FINANCIAL AUDIT DOH may require BORROWER to obtain an audit of this PROJECT conforming to Generally Accepted Accounting Principles (GAAP) promulgated by the Financial Accounting Standards Board (FASB). BORROWER will maintain its records and accounts in accordance with GAAP and other applicable FASB requirements to facilitate any audit under this CONTRACT. BORROWER is responsible for correcting any audit findings. BORROWER is responsible for any audit findings incurred by its own organization and/or its contractors and/or subcontractors. DOH reserves the right to recover from BORROWER all disallowed costs and INELEGIBLE PROJECT COSTS resulting from an audit. Audits must include a report on compliance, including an opinion (or disclaimer of opinion) about whether the BORROWER is in compliance with applicable law, regulations, and requirements of this CONTRACT. Any such audit report will also highlight any issues that could have a direct and material effect on DOH. BORROWER will send a copy of any required audit per 2 CFR §200.512 to the DOH Contract Manager, no later than 9 months after the end of BORROWER’s fiscal year. BORROWER must send any audit corrective action plan Page 257 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 12 of 41 DWSRF Loan Contract (Municipal) v1 for audit findings and a copy of the management letter, within 3 months of the audit report. 4.25. FRAUD AND OTHER LOSS REPORTING BORROWER will report in writing all known or suspected fraud or other loss of any funds or other property furnished under this CONTRACT immediately or as soon as practicable to the DOH Representative identified on the Face Sheet. 4.26. GOVERNING LAW AND VENUE This CONTRACT will be construed and interpreted according to the laws of the State of Washington, and the venue of any action brought under the CONTRACT will be in the Superior Court for Thurston County. If any provision of this CONTRACT violates any statute or rule of law of the State of Washington, it will be considered modified to conform to that statute or rule of law. 4.27. HISTORICAL AND CULTURAL REQUIREMENTS BORROWER will not conduct or authorize destructive PROJECT planning activities before completing the requirements under Section 106 of the National Historic Preservation Act. BORROWER will not begin construction activities, ground disturbance, or excavation of any sort, until BORROWER has complied with all requirements of the NHPA. If historical or cultural artifacts are discovered during the PROJECT, BORROWER will immediately stop construction and implement reasonable measures to protect the discovery site from further disturbance, take reasonable steps to ensure confidentiality of the discovery site, restrict access to the site, and notify the concerned tribe’s cultural staff or committee, Tribal Historical Preservation Officer (THPO), DOH Contract Manager, and the State's Historical Preservation Officer (SHPO) at the Washington State Department of Archaeology and Historic Preservation (DAHP). If human remains are uncovered, BORROWER will report the presence and location of the remains to the local coroner and law enforcement immediately, then contact the concerned tribe’s cultural staff or committee, DOH Contract Manager, and DAHP. BORROWER is legally and financially responsible for compliance with all laws, regulations, and agreements related to the preservation of historical or cultural sites and artifacts and will hold harmless the State of Washington and DOH in relation to any claim related to historical or cultural sites discovered, disturbed, or damaged as a result of BORROWER’S and BORROWER’s contractors’ and/or subcontractors’ activities. BORROWER will include the requirements of this Section in all contracts for work or services related to the PROJECT. BORROWER will require that bid documents include an inadvertent discovery plan that meets the requirements of this Section. 4.28. INDEMNIFICATION To the fullest extent permitted by law, BORROWER will indemnify, defend, and hold harmless DOH, the State of Washington, agencies of the State, and all officials, agents, employees, and representatives of the State, from and against all Claims arising out of or incident to BORROWER’S or any BORROWER’S contractors’ and/or subcontractors’ performance or failure to perform the CONTRACT (including, without limitation, injury or death). BORROWER’S obligation to indemnify, defend, and hold harmless includes any Claim by any and all of BORROWER’s agents, employees, representatives, and/or subcontractor(s) (and their agents, employees, and representatives, to the extent that BORROWER is using any contractor and/or subcontractor for the Project). For the avoidance of doubt, BORROWER’s obligations under this Section will not be eliminated or reduced by any actual or alleged concurrent negligence of DOH, the State of Washington, agencies of the State, or any of their officials, agents, employees, and/or representatives. BORROWER’S obligation to indemnify, defend, and hold harmless DOH and the State of Washington includes any Claim by BORROWER’S agents, employees, officers, contractors, subcontractors, and/or contractor or subcontractor employees. Notwithstanding this, the BORROWER’s obligations will not include such Claims that may be caused by the sole negligence of the State and its agencies, officers, officials, agents, and/or employees. Page 258 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 13 of 41 DWSRF Loan Contract (Municipal) v1 BORROWER waives immunity under RCW 51 to the extent it is required to indemnify, defend, and hold harmless the State of Washington and its agencies, officers, officials agents, and/or employees. 4.29. INDEPENDENT CAPACITY OF THE BORROWER The parties intend that an independent contractor relationship will be created by this CONTRACT. The BORROWER and its employees, officers, representatives, and/or agents performing under this CONTRACT are not employees or agents of the State of Washington or DOH. The BORROWER will not hold itself out as or claim to be an officer or employee of DOH or of the State of Washington by reason hereof nor will the BORROWER make any claim of right, privilege, or benefit which would accrue to such officer or employee under law. Conduct and control of the work associated with the PROJECT will be solely with the BORROWER. 4.30. INTERNAL CONTROLS BORROWER must designate one person as fiscal coordinator of the LOAN. BORROWER must maintain effective internal controls and comply with standards adopted by FASB. 4.31. INSURANCE COVERAGE REQUIREMENTS A. Insurance Requirements for Reimbursable Activities The BORROWER will have insurance coverage that is substantially similar to the coverage described in Section 4.28(B) below for all periods in which BORROWER performed work for which it will seek reimbursement. The intent of the required insurance is to protect the State of Washington should there be any Claims, suits, actions, costs, damages, or expenses arising from any loss or negligent or intentional act or omission of the BORROWER or contractor and/or subcontractor, or agents of any of them, while performing under the terms of this CONTRACT. B. Additional Insurance Requirements During the Term of the CONTRACT i. The BORROWER shall provide proof to DOH of insurance coverage that shall be maintained in full force and effect, as indicated below, and shall submit renewal certificates not less than 30 calendar days prior to expiration of each policy required under this Section: a. Commercial General Liability Insurance Policy. Provide a Commercial General Liability Insurance Policy, including contractual liability, written on an occurrence basis, in adequate quantity to protect against legal liability arising out of or related to this CONTRACT but in no less than $1,000,000 per occurrence. Additionally, the BORROWER is responsible for ensuring that any subcontractor provide adequate insurance coverage for the activities arising out of or related to subcontracts (if any). Commercial General Liability Insurance coverage shall be maintained in full force and effect during the term of this CONTRACT and throughout the Commitment Period. b. Property Insurance. The BORROWER shall keep the property insured in an amount sufficient to permit such insurance to be written at all times on a replacement cost basis. Such insurance shall cover the following hazards, as applicable: 1. Loss or damage by fire and such other risks; 2. Loss or damage from leakage or sprinkler systems now or hereafter installed in any building on the premises; 3. Loss or damage by explosion of steam boilers, pressure vessels, oil or gasoline storage tanks, or similar apparatus now or hereafter installed in a building or building on the premises. This property insurance coverage must be maintained in full force and effect throughout the term of this CONTRACT and the Commitment Period. c. Professional Liability, Errors, and Omissions Insurance. If BORROWER will be providing any professional services to be reimbursed under this CONTRACT, the BORROWER shall maintain Professional Liability or Errors and Omissions Insurance with minimum limits of no less than $1,000,000 per occurrence to cover all activities by the BORROWER and licensed staff employed or under contract to the BORROWER. The State of Washington, the Department of Health, its agents, officers, and employees need not be named as additional insureds under this policy. This insurance must be maintained throughout the term of the CONTRACT and Commitment Period. BORROWER will require that any subcontractors providing professional services that are reimbursable under this CONTRACT maintain Professional Liability or Errors and Omissions Insurance at the coverage levels set forth in this subsection. d. Fidelity Insurance. Every officer, director, employee, or agent who is authorized to act on behalf of the BORROWER for the purpose of receiving or depositing funds into program accounts or issuing financial Page 259 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 14 of 41 DWSRF Loan Contract (Municipal) v1 documents, checks, or other instruments of payment for program costs shall be insured to provide protection against loss where: 1. The amount of fidelity coverage secured pursuant to this CONTRACT shall be $2,000,000 or the highest of planned reimbursement for the CONTRACT period, whichever is lower. Fidelity insurance secured pursuant to this paragraph shall name the State of Washington, the Department of Health, its agents, officers, and employees as beneficiary. 2. Subcontractors that receive $10,000 or more per year in funding through this CONTRACT shall secure fidelity insurance as noted above. Fidelity insurance secured by subcontractors pursuant to this paragraph shall name the BORROWER and the BORROWER’s fiscal agent (if any) as beneficiary. 3. Fidelity Insurance coverage shall be maintained in full force and effect from the start date of this CONTRACT until BORROWER has submitted a Closeout Certification Form, subject to the following: Fidelity Insurance must be issued on either (a) a “loss sustained” basis; or (b) if issued on a “loss-discovered” basis, provide coverage for at least 6 months following the date of BORROWER’s receipt of the Closeout Certification Form. 4. Fidelity Insurance for Organizations with No Employees. The requirement for fidelity insurance described in that term is hereby waived as long as the BORROWER does not have any employees (including, but not limited to, volunteers, work-study placements, and interns). ii. The insurance required shall be issued by an insurance company authorized to do business within the State of Washington. Except as otherwise set forth in this Section, each insurance policy shall name “the State of Washington, the Department of Health, and their agents, officers, and employees” as additional insureds on all policies. All policies shall be primary to any other valid and collectable insurance. The BORROWER shall instruct the insurers to give DOH 30 calendar days’ advance notice of any insurance cancellation or modification. iii. The BORROWER shall submit to DOH within 15 calendar days of the CONTRACT start date, a certificate of insurance which outlines the coverage and limits defined in this Section including, without limitation, the type of insurance coverage under the policy, the designated beneficiary, who is covered, the amounts, the period of coverage, and that DOH will be provided 30 days’ advance written notice of cancellation. During the term of the CONTRACT, the BORROWER shall submit renewal certificates not less than 30 calendar days prior to expiration of each policy required under this Section. Additionally, BORROWER shall provide copies of insurance instruments or certifications, at DOH’s request and until 6 months after DOH has received a Closeout Certification Form from BORROWER. Copies of such insurance instruments and certifications will be provided within 15 calendar days of DOH’s request unless otherwise agreed to by the parties. iv. BORROWER and Local Governments that Participate in a Self-Insurance Program. Self-Insured/Liability Pool or Self-Insured Risk Management Program – With prior approval from DOH, the BORROWER may provide the coverage above under a self-insured/liability pool or self-insured risk management program. In order to obtain permission from DOH, the BORROWER will provide: (1) a description of its self- insurance program and (2) a certificate and/or letter of coverage that outlines coverage limits and deductibles. All self-insured risk management programs or self-insured/liability pool financial reports must comply with GAAP and adhere to accounting standards promulgated by: 1) Governmental Accounting Standards Board (GASB), 2) FASB, and 3) the Washington State Auditor’s annual instructions for financial reporting. BORROWER’s participating in joint risk pools will maintain sufficient documentation to support the aggregate claim liability information reported on the balance sheet. The State of Washington, the Department of Health, and their agents, officers, and employees need not be named as additional insured under a self-insured property/liability pool, if the pool is prohibited from naming third parties as additional insured. BORROWER will provide annually to DOH a summary of coverages and a letter of self- insurance, evidencing continued coverage under BORROWER’s self-insured/liability pool or self-insured risk management program. Such annual summary of coverage and letter of self-insurance will be provided on the anniversary of the start date of this CONTRACT. 4.32. INDUSTRIAL INSURANCE COVERAGE Page 260 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 15 of 41 DWSRF Loan Contract (Municipal) v1 In addition to the requirements set forth in Section 4.[31] (Insurance Coverage Requirements) above, BORROWER understands and agrees that BORROWER and its contractors and/or subcontractors (if any) will comply with the applicable parts of RCW 51 RCW (Industrial Insurance). If BORROWER and/or any of its contractors and/or subcontractors (if any) fail to provide industrial insurance coverage or fail to pay premiums or penalties on behalf of its employees as required by law, DOH may collect from BORROWER the full amount payable to the Industrial Insurance Accident Fund. DOH may deduct the amount owed by BORROWER and/or any of its contractors (if any) to the accident fund from the amount payable to BORROWER by DOH under this CONTRACT and transmit the deducted amount to the Washington State Department of Labor and Industries (L&I) Division of Insurance Services. This provision does not waive any of L&I’s rights to collect from the BORROWER and/or any of its contractors (if any). 4.33. LAWS The BORROWER will comply with all applicable laws, ordinances, codes, regulations, and policies of local, state, and federal governments, as now or hereafter amended. 4.34. LICENSING, ACCREDITATION, AND REGISTRATION The BORROWER will comply with all applicable local, state, and federal licensing, accreditation, and registration requirements or standards necessary for the performance of this CONTRACT. 4.35. LITIGATION BORROWER warrants that there is no threatened or pending litigation, investigation, or legal action before any court, arbitrator, or administrative agency that, if adversely determined against BORROWER, would have a materially adverse effect on BORROWER’s ability to repay the LOAN AMOUNT. BORROWER agrees to promptly notify DOH if any above-referenced actions become known to BORROWER during the pendency of the CONTRACT. 4.36. NONCOMPLIANCE WITH NONDISCRIMINATION LAWS A. During the performance of this CONTRACT, the BORROWER, including any contractor and/or subcontractor, will comply with all federal, state, and local nondiscrimination laws, regulations, and policies including, without limitation, not discriminate on the bases enumerated at RCW 49.60.530(3). In addition, BORROWER, including any contractor and/or subcontractor, will give written notice of this nondiscrimination requirement to any labor organizations with which BORROWER, or contractor and/or subcontractor, has a collective bargaining or other agreement. The LOAN FUNDS will not be used to fund religious worship, exercise, or instruction. No person will be required to participate in any religious worship, exercise, or instruction in order to have access to the facilities funded by this CONTRACT. B. Obligation to Cooperate. BORROWER, including any contractor and/or subcontractor, shall cooperate and comply with any Washington state agency investigation regarding any allegation that BORROWER, including any contractor and/or subcontractor, has engaged in discrimination prohibited by this CONTRACT pursuant to RCW 49.60.530(3). C. Default. Notwithstanding any provision to the contrary, DOH may suspend BORROWER, including any contractor and/or subcontractor, upon notice of a failure to participate and cooperate with any state agency investigation into alleged discrimination prohibited by this CONTRACT, pursuant to RCW 49.60.530(3). Any such suspension will remain in place until DOH receives notification that BORROWER, including any contractor and/or subcontractor, is cooperating with the investigating state agency. In the event BORROWER, or contractor and/or subcontractor, is determined to have engaged in discrimination identified at RCW 49.60.530(3), DOH may terminate this CONTRACT in whole or in part, and BORROWER, contractor, subcontractor, or any or all, may be referred for debarment as provided in RCW 39.26.200. BORROWER or contractor or subcontractor may be given a reasonable time in which to cure this noncompliance, including implementing conditions consistent with any court-ordered injunctive relief or settlement agreement. Failure by BORROWER to carry out these requirements is a material breach of this CONTRACT and subject to termination for cause. 4.37. PAY EQUITY The BORROWER will ensure that “similarly employed” individuals in its workforce are compensated as equals, consistent with the following: Page 261 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 16 of 41 DWSRF Loan Contract (Municipal) v1 A. Employees are “similarly employed” if the individuals work for the same employer, the performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed; B. BORROWER may allow differentials in compensation for its workers if the differentials are based in good faith and on any of the following: i. A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels; and/or ii. A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience that is: (a) consistent with business necessity; (b) not based on or derived from a gender- based differential; and (c) accounts for the entire differential; and/or iii. A bona fide regional difference in compensation level must be: (a) Consistent with business necessity; (b) not based on or derived from a gender-based differential; and (c) account for the entire differential. This CONTRACT may be terminated by DOH, if DOH or the Department of Enterprise Services determines that the BORROWER is not in compliance with this Section. 4.38. POLITICAL ACTIVITIES Political activity of BORROWER employees and officers are limited by the Campaign Disclosure and Contribution provisions of RCW 42.17a and the Federal Hatch Act, 5 USC 1501 - 1508. No funds may be used for working for or against ballot measures or for or against the candidacy of any person for public office. 4.39. PREVAILING WAGE BORROWER will assure that all contractors and subcontractors performing work funded through this CONTRACT comply with prevailing wage laws by paying the higher of state or federal prevailing wages. BORROWER is legally and financially responsible for compliance with the prevailing wage requirements. The BORROWER certifies that all contractors and subcontractors performing work on the Project shall comply with State Prevailing Wages on Public Works, RCW 39.12, as applicable to the Project funded by this CONTRACT, including, but not limited to, the filing of the “Statement of Intent to Pay Prevailing Wages” and “Affidavit of Wages Paid” as required by RCW 39.12.040. The BORROWER shall maintain records sufficient to evidence compliance with RCW 39.12 and shall make such records available for DOH’s review upon request. BORROWER is advised to consult the United States Department of Labor and/or the Industrial Statistician at the Washington State Department of Labor and Industries to determine whether and what federal and state prevailing wages must be paid. DOH is not responsible for determining whether or what prevailing wage applies to this Project and/or for any prevailing wage payments that may be required by law. 4.40. PROCUREMENT BORROWER will comply with all procurement policies, procedures, and requirements for contracting and/or subcontracting for the PROJECT and for obtaining PROJECT-related goods and services funded through this CONTRACT. BORROWER and its contractors and/or subcontractors must receive approval from DOH before entering into any sole source contract or contract where only one bid or proposal was received if the value of the contract is likely to exceed $5,000. BORROWER’S request for DOH approval must include a copy of the proposed contract(s), all related procurement documents, and justification for non-competitive procurement. BORROWER will ensure that all contractors, subcontractors, engineers, vendors, and any other entity for work or services listed in the PROJECT will insert in full, in any contract, the labor standards provisions in Attachment VIII- Labor Standard Provisions for Subrecipients That Are Governmental Entities. BORROWER will maintain records to verify compliance with procurement requirements, including, without limitation, identifying the procurement method used, the reason for selecting the contractor, the rationale used for selecting the contract type, the reason(s) for selecting and rejecting bidders or qualified firms, and the basis for the contract cost or price. Page 262 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 17 of 41 DWSRF Loan Contract (Municipal) v1 4.41. PROHIBITION STATEMENT Per Section 106 of the federal Trafficking Victims Protection Act, BORROWER `s contractors, subcontractors, engineers, vendors, and any other entity performing work funded by this CONTRACT must comply with and include the following terms and conditions in all contracts for work or services for the PROJECT. “All forms of trafficking in persons, illegal sex trade, or forced labor practices are prohibited in the performance of this award or subawards under the award, or in any manner during the period of time that the award is in effect. This prohibition applies to you as the recipient, your employees, subrecipients under this award, and subrecipients’ employees.” 4.42. PROJECT SIGNS If BORROWER displays, during the TIME OF PERFORMANCE, any signs or markers identifying parties that are providing funds for the PROJECT, BORROWER must include the Washington State Department of Health Drinking Water State Revolving Fund and the Washington State Department of Health as participants in the PROJECT. 4.43. PUBLIC RECORDS ACT Notwithstanding General Terms and Conditions Section [4.20] (Confidentiality/Safeguarding of Information), DOH is a public agency subject to the Public Records Act, RCW 42.56 (PRA). Under the PRA, all materials relating to the conduct of government or the performance of any governmental or proprietary function prepared, owned, used, or retained by DOH or its functional equivalents are considered public records. The PRA requires that public records responsive to a public records request be promptly produced unless the PRA or an “other statute” exempts such records from production. This CONTRACT is not intended to alter DOH’s obligations under the PRA. The parties agree that if DOH receives a public records request for files that may include confidential information under Section [4.20] (Confidentiality/Safeguarding of Information), DOH may notify the other party of the request and of the date that the records will be released to the requester unless BORROWER obtains a court order enjoining disclosure. If the BORROWER fails to obtain the court order enjoining disclosure, DOH may release the requested information on the date specified. If the BORROWER obtains a court order from a court of competent jurisdiction enjoining disclosure pursuant to the PRA, DOH will maintain the confidentiality of the information per the court order. 4.44. PUBLICITY BORROWER agrees not to publish or use any advertising or publicity materials in which the State of Washington or DOH’s name is mentioned, or language used from which the connection with the State of Washington’s or DOH’s name may reasonably be inferred or implied, without the prior written consent of DOH. 4.45. RATES AND RESERVES BORROWER will maintain reserves at a minimum as required by the Water System Plan or Small Water System Management Plan. BORROWER will timely adopt rate increases and/or capital assessments for the system’s services to provide sufficient funds, along with other revenues of the system, to pay all operating expenses and debt repayments during the LOAN TERM. 4.46. RECAPTURE In the event that the BORROWER fails to perform this CONTRACT in accordance with state or federal laws, and/or the provisions of this CONTRACT, DOH reserves the right to recapture LOAN FUNDS from BORROWER in an amount to compensate DOH for BORROWER’s noncompliance with any part of this CONTRACT, in addition to any other remedies available under the CONTRACT, at law, or in equity. DOH may withhold LOAN FUNDS from BORROWER to recapture such funds. DOH’s ability to recapture or seek remedies shall survive any receipt of a Closeout Certification Form or termination of this CONTRACT. 4.47. RECORDKEEPING AND ACCESS TO RECORDS The BORROWER will maintain books, records, documents, data, and other evidence relating to this CONTRACT and performance of the services described herein, including, but not limited to, accounting procedures and practices that sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this CONTRACT. DOH, the Office of the State Auditor, and federal and state officials so authorized by law, regulation, or agreement (and any of their agents) will have full access and the right to examine, copy, excerpt, or transcribe, at no additional cost and at all reasonable times, any pertinent documents, papers, records, and books (including, without limitation, Page 263 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 18 of 41 DWSRF Loan Contract (Municipal) v1 materials generated under the CONTRACT) of BORROWER and of persons, firms, or organizations with which BORROWER may contract, involving transactions related to this CONTRACT. BORROWER agrees to keep complete records of its compliance with this CONTRACT for a period of 6 years from the date that the debt to DOH is paid in full. This includes, but is not limited to, financial reports. If any litigation, Claim, or audit is started before the expiration of the 6 year period, BORROWER must keep the records until all litigation, Claims, or audit findings involving the records have been resolved. These records retention requirements are in addition to the local government records retention schedules applicable to the BORROWER. 4.48. REDUCTION IN FUNDS In the event that funds appropriated for the Project contemplated under this CONTRACT are withdrawn, reduced, or limited in any way by any funding source (including, without limitation, the federal government) during the CONTRACT period, the parties understand and agree that DOH may suspend, amend, or terminate the CONTRACT to abide by the revised funding limitations. The parties understand and agree that BORROWER will be bound by any such revised funding limitations as implemented at the discretion of DOH and, if and as requested by DOH, will meet and renegotiate the CONTRACT accordingly. 4.49. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT (SAM) BORROWER must comply with 48 CFR 52.204-7 to register with the System for Awards Management (SAM.gov). BORROWER is responsible for the accuracy and completeness of its data in the SAM database and any liability resulting from the federal government or DOH reliance on inaccurate or incomplete data in it. BORROWER must remain registered in the SAM database. BORROWER should annually review its information in SAM to ensure it is accurate and complete. 4.50. RIGHT OF INSPECTION At no additional cost, the BORROWER will provide right of access to its facilities to DOH, or any of its officers, or to any other authorized agent or official of the State of Washington or the federal government, at all reasonable times, in order to monitor and evaluate performance, compliance, and/or quality assurance under this CONTRACT. At no additional cost, the BORROWER will also provide any documents related to this CONTRACT to DOH upon request to assist DOH in the periodic monitoring of this CONTRACT. 4.51. SEVERABILITY The provisions of this CONTRACT are intended to be severable. If any part of this CONTRACT or part of any document incorporated by reference is found to be illegal or invalid for any reason whatsoever, it will not affect the legality or validity of the remainder of the CONTRACT. For the avoidance of doubt, other parts of this CONTRACT that can be given effect without the illegal or invalid part will remain in full force and effect. 4.52. SITE SECURITY While on DOH premises, BORROWER, its agents, employees, and/or subcontractors will conform in all respects with physical, fire, and other security policies or regulations. 4.53. STATE PUBLIC WORKS For work done at the cost of the State, BORROWER must comply with public works statutes RCW 39.04 and RCW 39.10, apprenticeship requirements, and the State and local building codes, as applicable. If BORROWER has questions about compliance, BORROWER will need to visit the Washington State Department of Labor & Industries Public Works Projects website for more information. 4.54. SUBCONTRACTING A. Prior to awarding contracts and/or subcontracts, BORROWER must verify that the complete names of both the selected contractor and the owner or president are not in the Federal Excluded Parties List System for Ineligible Professionals and Debarred Contractors (www.SAM.gov). BORROWER must provide the DOH Contract Manager with a screen printout documenting that neither the firm, the owner or the president are excluded. B. BORROWER will execute binding written agreements will all contractors and subcontractors that will perform work under this CONTRACT. Page 264 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 19 of 41 DWSRF Loan Contract (Municipal) v1 C. BORROWER will ensure that every contract and subcontract awarded for the PROJECT after the CONTRACT start date will bind the parties to follow all applicable terms of this CONTRACT. D. BORROWER will ensure that any and all contractors and subcontractors that perform work related to this Project are duly authorized and licensed in Washington State to perform the work contemplated by this CONTRACT. E. Neither the BORROWER nor any contractor or subcontractor shall enter into contracts or subcontracts for any of the work associated with the Project contemplated under this CONTRACT without obtaining prior written approval of DOH. In no event will the existence of the contract or subcontract operate to release or reduce the liability of the BORROWER to DOH for any breach in the performance of the BORROWER’s duties. This clause does not include grants of employment between the BORROWER and personnel assigned to perform work associated with the Project under this CONTRACT. F. BORROWER is responsible for ensuring that all terms, conditions, assurances, and certifications set forth in this CONTRACT are carried forward to any contracts and/or subcontracts and that BORROWER is responsible for any noncompliance by its contractors and/or subcontractors for work performed on the Project. Every contract and/or subcontract will include a term that DOH and the State of Washington are not liable for Claims or damages arising from a contractor’s and/or subcontractor’s performance of such contract or subcontract. BORROWER and its contractors and/or subcontractors agree not to release, divulge, publish, transfer, sell, or otherwise make known to unauthorized persons personal information without the express written consent of DOH or as provided by applicable law. For the avoidance of doubt, BORROWER’s contracts or subcontracts will not release or reduce the BORROWER’s liability to DOH for any breach in the performance of BORROWER’s duties. Also for the avoidance of doubt, BORROWER’s contracts and subcontracts will include a term that the State of Washington and DOH are not liable for claims or damages arising from a contractor and/or subcontractor’s performance or lack thereof. G. Data Collection - BORROWER will submit reports, in a form and format to be provided by DOH and at intervals as agreed by the parties, regarding work under this CONTRACT performed by contractors and/or subcontractors and the portion of LOAN FUNDS expended for work performed by contractors and/or subcontractors. H. The BORROWER will maintain written procedures related to contractors and/or subcontractors as well as copies of all contracts and/or subcontracts and associated records. For cause, DOH in writing may: (a) require that the BORROWER amend its procedures for contracts and/or subcontractors as they relate to this CONTRACT; (b) prohibit the BORROWER from hiring contractors and/or subcontractors with a particular person or entity; or (c) require that the BORROWER rescind or amend a contract or subcontract. I. The BORROWER is responsible to DOH if the contractor and/or subcontractor fails to comply with any applicable term or condition of this CONTRACT. The BORROWER will appropriately monitor the activities of the contractor and/or subcontractor to assure fiscal conditions of this CONTRACT. In no event will the existence of a contract and/or subcontract operate to release or reduce the liability of the BORROWER to DOH for any breach in the performance of the BORROWER’s duties. 4.55. SURVIVAL The terms, conditions, and warranties contained in this CONTRACT that by their sense and context are intended to survive the completion of the performance, cancellation, or termination of this CONTRACT shall so survive including, without limitation, any Recapture provision in this CONTRACT. 4.56. TAXES All payments accrued on account of payroll taxes, unemployment contributions, the BORROWER’s income or gross receipts, and/or any other taxes, insurance, or expenses for the BORROWER or its staff shall be the sole responsibility of the BORROWER. 4.57. TERMINATION FOR CAUSE If DOH determines that BORROWER has failed to comply with the terms and conditions of this CONTRACT in a timely manner, DOH may, at its sole discretion, upon notice to BORROWER, terminate or suspend the CONTRACT in whole or in part. Page 265 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 20 of 41 DWSRF Loan Contract (Municipal) v1 The notice will be in writing and state the reason(s) for termination or suspension, and the effective date. The effective date will be determined by DOH. The notice will allow BORROWER at least 30 business days to cure the breach, if curable. If the breach is not cured or cannot be cured within 30 business days, the outstanding balance of the LOAN, with any interest accrued and other costs as authorized by the CONTRACT shall be due and payable to DOH. If DOH terminates or suspends this CONTRACT under this Section, DOH is only liable for payment required under the terms and conditions of this CONTRACT for ELIGIBLE PROJECT COSTS incurred prior to the effective date of termination. If DOH terminates or suspends this CONTRACT under this Section, the BORROWER will be liable for damages as authorized by law including, without limitation, any cost difference between the original CONTRACT and the replacement or cover CONTRACT and all administrative costs directly related to the replacement CONTRACT (e.g., cost of the competitive bidding, mailing, advertising and staff time). Notwithstanding this, DOH reserves the right to suspend all or part of the CONTRACT, withhold further payments, or prohibit the BORROWER from incurring additional obligations of funds during investigation of the alleged compliance breach and pending corrective action by the BORROWER or a decision by DOH to terminate the CONTRACT. At DOH’s sole discretion, the termination for cause may be deemed a “Termination or Suspension for Convenience” under Section [4.53] if DOH determines that the BORROWER was not in default or if any default or failure to perform under this CONTRACT was outside BORROWER’s control, fault, or negligence. The rights and remedies of DOH provided in this CONTRACT are not exclusive and are in addition to any other rights and remedies provided under applicable law. Nothing in this Section affects BORROWER’s obligations to immediately repay the unpaid balance of the LOAN AMOUNT as prescribed in the Washington Administrative Code (WAC) 246-296-150. 4.58. TERMINATION FOR FRAUD In the event that the BORROWER commits fraud or makes any misrepresentation in connection with the loan application or during the performance of this CONTRACT, DOH reserves the right to terminate or amend this CONTRACT accordingly, including the right to recapture all funds disbursed to the BORROWER under the CONTRACT. 4.59. TERMINATION OR SUSPENSION FOR CONVENIENCE If funding or appropriation from state, federal, or other sources is withdrawn, reduced, or limited in any way during the TIME OF PERFORMANCE, DOH may: A. Delay or suspend releasing LOAN FUNDS until funding or appropriation are available to DOH; or B. Amend the CONTRACT to reflect the new funding limitations and conditions; or C. Terminate the CONTRACT and/or its attached agreements, in whole or in part; or D. Suspend the CONTRACT and/or its attached agreements, in whole or in part. If DOH terminates the CONTRACT under this Section, DOH will notify BORROWER’s representative in writing of the reason(s) for termination, and the effective date. Termination of the CONTRACT will be effective as of the date determined by DOH. DOH may choose to suspend this CONTRACT, in whole or in part, if DOH determines that the funding insufficiency will likely be resolved in time for BORROWER to resume activities prior to the end of the TIME OF PERFORMANCE. DOH will notify BORROWER’s representative by email of the reason(s) for suspension, and the effective date. DOH will determine the effective date. BORROWER must suspend performance on the effective date of the suspension. During the period of suspension, each party must notify the other party’s representative of any conditions that may reasonably affect its ability to resume performance. During the suspension, when DOH determines that the funding insufficiency is resolved, DOH may notify BORROWER’s representative of the proposed date to resume performance. BORROWER must respond to DOH’s representative in writing, within 5 business days of DOH sending notice, as to whether it can resume performance on that date or offer an alternative date to resume performance. If BORROWER cannot resume performance or the alternative date is not acceptable to DOH, the parties agree the CONTRACT will be deemed terminated for convenience, retroactive to the original date of suspension. Page 266 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 21 of 41 DWSRF Loan Contract (Municipal) v1 If DOH terminates or suspends this CONTRACT, DOH will be liable only for payment required under the terms of this CONTRACT for ELIGIBLE PROJECT COSTS for services rendered or goods received that were incurred prior to the effective date of suspension or termination, and payment for any work done on the CONTRACT prior to the loss of funding will be done in accordance with the requirements of the funding source. Nothing in this Section shall affect BORROWER’s obligations to repay the unpaid balance of the LOAN. Nothing in this Section affects BORROWER’s obligation to repay the LOAN, including fees and other expenses as allowed by the CONTRACT. For the avoidance of doubt, should funding from any funding source (including, without limitation, federal funding) that supports this CONTRACT be withdrawn, reduced, or limited in any way after the effective date of this CONTRACT and prior to normal completion of the Project, DOH (at its sole discretion) may terminate the CONTRACT without any notice requirement and/or may amend the CONTRACT to reflect the new funding limitations and conditions. Also, for the avoidance of doubt, should funding from any funding source (including, without limitation, federal funding) that supports this CONTRACT be terminated, this CONTRACT and all obligations, including payment for work done under this CONTRACT, will be terminated without the 10-calendar day notice requirement and instead as of the date of the termination of the funding source. 4.60. TERMINATION PROCEDURES When BORROWER receives Notice of Termination or on the date a suspension is converted to a termination, except as otherwise directed by DOH, BORROWER will: A. Stop work under the CONTRACT on the date, and to the extent specified, in the notice; B. Place no further orders or subcontracts for materials, services, or facilities related to the CONTRACT except as may be necessary for completion of such portion of the work under the CONTRACT that is not terminated; C. Assign to DOH, in the manner, at the times, and to the extent directed by the Authorized Representative, any or all of the rights, title, and interest of BORROWER under the orders and subcontracts so terminated, in which case DOH has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts. Any attempt by BORROWER to settle such claims must have the prior written approval of DOH; D. Settle all outstanding liabilities and all Claims arising out of such termination of orders and subcontracts, with the approval or ratification of the DOH Authorized Representative to the extent the DOH Authorized Representative may require, which approval or ratification shall be final for all the purposes of this clause; E. Complete performance of such part of the work associated with the Project as shall not have been terminated by the DOH Authorized Representative; F. Take such action as may be necessary, or as the DOH Authorized Representative may direct, for the protection and preservation of the property related to this CONTRACT, which is in the possession of the BORROWER and in which DOH has or may acquire an interest; and G. Preserve and transfer title to DOH and delivery in the manner, at the times, and to the extent directed by the DOH Authorized Representative of any property that if the CONTRACT had been completed would have been required to be furnished to DOH (including, without limitation, materials, CONTRACT deliverables, and/or DOH property in BORROWER’s possession) as directed by DOH. Upon termination of this CONTRACT, DOH will pay BORROWER for amounts due under the CONTRACT prior to the date of termination unless such payment is precluded under any other provision of this CONTRACT. DOH may withhold any amount due as DOH reasonably determines is necessary to protect DOH against potential loss or liability resulting from the termination. DOH will pay any withheld amount to BORROWER if DOH later determines that loss or liability will not occur. Notwithstanding this, the parties understand and agree that failure of BORROWER to agree with such determination shall be a dispute within the meaning of the "Disputes" clause of this CONTRACT. DOH may withhold from any amounts due the BORROWER for such sum as the DOH Authorized Representative determines to be necessary to protect DOH against potential loss or liability. Upon termination of this CONTRACT, DOH, in addition to any other rights provided in this CONTRACT, may require the BORROWER to deliver to DOH any property specifically produced or acquired for the performance of such part Page 267 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 22 of 41 DWSRF Loan Contract (Municipal) v1 of this CONTRACT as has been terminated. The rights and remedies of DOH provided in this Section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this CONTRACT. 4.61. WORK HOURS AND SAFETY STANDARDS If this CONTRACT exceeds $100,000, BORROWER must comply with the applicable Contract Work Hours and Safety Standards Act (40 USC Chapter 37). These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 4.62. ACCESS TO DATA In compliance with RCW 39.26.180, the BORROWER will provide access to data generated under this CONTRACT to DOH, the Joint Legislative Audit and Review Committee, and the Office of the State Auditor at no additional cost. This includes access to all information that supports the findings, conclusions, and recommendations of the BORROWER’s reports, including computer models and the methodology for those models. 4.63. ADVANCE PAYMENTS PROHIBITED No payments in advance of or in anticipation of goods or services to be provided under this CONTRACT shall be made by DOH. 4.64. ALLOWABLE COSTS Costs allowable under this CONTRACT are actual expenditures according to an approved budget up to the maximum amount stated on the CONTRACT Award or Amendment Face Sheet. 4.65. AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, PUBLIC LAW 101-336, ALSO REFERRED TO AS THE “ADA” 28 CFR PART 35 LLOWABLE COSTS The BORROWER will comply with the ADA, which provides comprehensive civil rights protection to individuals with disabilities in the areas of employment, public accommodations, state and local government services, and telecommunications. 4.66. BREACHES OF OTHER STATE CONTRACTS BORROWER will comply with all other contracts and grant agreements executed between BORROWER and the State of Washington. A breach of any other contract or grant agreement entered into between BORROWER and the State of Washington may, in DOH's sole discretion, be deemed a breach of this CONTRACT. 4.67. CODE REQUIREMENTS All construction and rehabilitation projects must satisfy the requirements of applicable local, state, and federal building, mechanical, plumbing, fire, energy and barrier-free codes. Compliance with the Americans with Disabilities Act of 1990 28 C.F.R. Part 35 will be required, as specified by the local building department and/or DOH. 4.68. CONFLICT OF INTEREST Notwithstanding any determination by the Executive Ethics Board or other tribunal, DOH may, in its sole discretion, by written notice to the BORROWER terminate this CONTRACT if it is found after due notice and examination by DOH that there is a violation of the Ethics in Public Service Act, RCW 42.52 and RCW 42.23, or any similar statute involving the BORROWER in the procurement of, or performance under, this CONTRACT. Specific restrictions apply to contracting with current or former state employees pursuant to RCW 42.52. The BORROWER and all subcontractors (if any) will identify any person employed in any capacity by the State of Washington that worked on this CONTRACT, or any matter related to the Project funded under this CONTRACT or any other state funded project, including, but not limited to, formulating or drafting legislation, participating in grant procurement, planning and execution, awarding grants, or monitoring grants, during the 24 month period preceding the start date of this CONTRACT. Any person identified by the BORROWER and their subcontractors (if any) must be identified individually by Page 268 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 23 of 41 DWSRF Loan Contract (Municipal) v1 name, the agency previously or currently employed by, job title or position held, and separation date. If it is determined by DOH that a conflict of interest exists, the BORROWER may be disqualified from further consideration for the award of a grant. In the event this CONTRACT is terminated as provided above, DOH will be entitled to pursue the same remedies against the BORROWER as it could pursue in the event of a breach of the CONTRACT by the BORROWER. The rights and remedies of DOH provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. The existence of facts upon which DOH makes any determination under this clause will be an issue and may be reviewed as provided in Section 4.21 (Disputes) of this CONTRACT. 4.69. DUPLICATE PAYMENT DOH will not pay the BORROWER, if the BORROWER has charged or will charge the State of Washington or any other party under any other grant, subcontract, contract, or agreement, for the same services or expenses. The BORROWER certifies that work to be performed under this CONTRACT does not duplicate any work to be charged against any other grant, subcontract, contract, or agreement. Page 269 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 24 of 41 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) ATTACHMENT I: SCOPE OF WORK (PROJECT) DWSRF PROGRAM CONSTRUCTION LOAN CONTRACT INFORMATION APPLICATION #2024-4372, CITY OF PASCO, BUTTERFIELD WATER TREATMENT PLANT IMPROVEMENTS – PHASE 1 EARLY WORKS DWSRF Scope of Work Form: Scope of Work: Scope of Work: Project to include: 1. Submit project report and construction documents to Eastern Regional Office for review and approval. 2. Submit bid documents to Eastern Regional Office for review and approval. 3. Submit SEPA determination. 4. Complete cultural and historical review process. Submit finalization letter. 5. Install mechanically brushed intake screens, modify screen cleaning; install 2 pumps and backwash station, fencing, and cameras. 6. Install three motor control centers, a standby generator, generator fuel storage, 2 variable frequency drives, uninterruptible power supply for Programmable Logic Controllers, additional instrumentation and monitoring. 7. Installation of a new raw water permanganate dosing station. 8. Complete treatment pilot testing for ozonation and direct, high-rate filtration treatment processes. 9. Submit completed Construction Completion Report. In addition to costs of construction, costs may include (but are not limited to): engineering, design, construction inspection, hydrogeologic assessment, permits, public involvement, preparation of bid documents, fees, taxes, legal, administrative and audit. Page 270 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 25 of 41 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) APPLICATION #2024-4372, CITY OF PASCO, BUTTERFIELD WATER TREATMENT PLANT IMPROVEMENTS – PHASE 1 EARLY WORKS Project Costs by Cost Category: COST CATEGORY CURRENT ESTIMATES Engineering Report (Preliminary Engineering) $25,260 Environmental Review $0 Historical Review/Cultural Review $0 Land/ROW Acquisition $0 Permits $163,200 Public Involvement/Information $0 Bid Documents (Design Engineering) $1,680,000 Construction: Estimated Cost. Provide details on following pages. $11,672,000 Contingency: (10% min, 20% max) $1,167,200 DOH Review/Approval Fees: $19,340 Sales or Use Taxes $0 Construction Engineering/Inspection $0 Insurance: $0 Audit: $0 Legal: $0 Service Meters (Purchase and Installation) $0 Other: $0 TOTAL ESTIMATED PROJECT COSTS (before Loan Fee) $14,727,000 DWSRF Loan Origination Fee 0.00 DWSRF Loan Award $14,727,000 Page 271 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 26 of 41 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) APPLICATION #2024-4372, CITY OF PASCO, BUTTERFIELD WATER TREATMENT PLANT IMPROVEMENTS – PHASE 1 EARLY WORKS Project Funding: TYPE OF FUNDING SOURCE CURRENT STATUS Grants and Other Non-Matching Funds Grant #1 $ Grant #2 $ Other Grants $ New Grants $ Total Grants and Other Non-Matching Funds $ Loans This Loan Request DWSRF loan (DWL31572-0) $14,727,000 Other Loan #1 $ Other Loan #2 $ Other Loans $ New Loans $ Total Loans $ Local Revenue Source #1 $ Source #2 $ Other Local Revenue $ New Local Revenue $ Total Local Revenue $ Other Funds Other Funds $ Other Funds $ Total Other Funds $ TOTAL PROJECT FUNDING a) $14,727,000 Page 272 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 27 of 41 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) APPLICATION #2024-4372, CITY OF PASCO, BUTTERFIELD WATER TREATMENT PLANT IMPROVEMENTS – PHASE 1 EARLY WORKS Engineer’s Certification: The term of this loan will be based on an engineer’s certification of the expected useful life of the improvements, as stated below, or 20 years, whichever is less. If the jurisdiction prefers the term of its loan to be less than either 20 years or the useful life of the improvements, the preferred loan term should be indicated here: __ years. I, _______________________, licensed engineer, certify that the average expected useful life for the improvements described above is __ years. Signed: ____________________________ Name: ____________________________ Date: ____________________________ Telephone: ____________________________ Professional Engineer License Number: _____________ Page 273 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 28 of 41 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) ATTACHMENT II: ATTORNEY’S CERTIFICATION DRINKING WATER STATE REVOLVING FUND (MUNICIPAL) I, ________________________________________________, hereby certify: I am an attorney at law admitted to practice in the State of Washington and the duly appointed attorney of BORROWER identified in the Declarations of the CONTRACT identified above; and I have also examined any and all documents and records, which are pertinent to the CONTRACT, including, without limitation, the application requesting this LOAN. Based on the foregoing, it is my opinion that: 1. BORROWER is a public body, properly constituted and operating under the laws of the State of Washington, in good standing with the Washington Secretary of State, empowered to receive and expend federal, state, and local funds, to contract with the State of Washington, and to receive and expend the LOAN AMOUNT to accomplish the objectives set forth in the CONTRACT and to complete the PROJECT. 2. BORROWER is empowered to accept the Drinking Water State Revolving Fund financial assistance and to provide for repayment of the LOAN as set forth in the CONTRACT. 3. There is currently no litigation in existence or foreseeable seeking to enjoin the commencement or completion of the PROJECT or to enjoin BORROWER from repaying the Drinking Water State Revolving Fund LOAN extended by DOH with respect to such PROJECT. BORROWER is not a party to litigation, which will materially affect its ability to repay such LOAN on the terms contained in the CONTRACT. 4. Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable to BORROWER. Any terms not defined in this Attachment are set forth in the General Terms and Conditions or the Declarations Section of the Drinking Water State Revolving Fund (Municipal) loan agreement between DOH and BORROWER. __________________________________ _____________________________ Signature of Attorney Date __________________________________ Name and BAR Number (WSBA No.) _______________________________________________________________________ Address Line 1 _______________________________________________________________________ Address Line 2 Page 274 of 325 «contract_number» – «Client» Page 29 of 41 Attachment III: Federal and State Requirements DWSRF Loan Contract (Municipal) v1 ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS (NOT ALL INCLUSIVE) 1) Federal Environmental and Cultural Authorities a) Archeological and Historic Preservation Act of 1974, Public Law 86-523, as amended b) Archaeological Resources Protection Act (ARPA), 16 U.S.C. §470 and Public Law 96–95, as amended c) Clean Air Act, Public Law 84-159 as amended d) Coastal Zone Management Act, Public Law 92-583 as amended e) Endangered Species Act, Public Law 93-205 as amended f) Environmental Justice, Executive Order 12898 g) Floodplain Management, Executive Order 11988 as amended by Executive Order 12148 h) Protection of Wetlands, Executive Order 11990 i) Farmland Protection Policy Act, Public Law 97-98 j) Fish and Wildlife Coordination Act, Public Law 85-624 as amended k) National Historic Preservation Act, paying particular attention to Section 106 requirements l) Safe Drinking Water Act, Public Law 93-523 as amended m) Wild and Scenic Rivers Act, Public Law 90-542 as amended n) Native American Graves Protection and Repatriation Act (NAGPRA) (25 USC 32) and associated regulations (43 CFR 10) o) Code of Federal Regulations 40 Part 141, Federal National Primary Drinking Water Regulations (Section Adopted by Reference) p) 43 C.F.R. §3, Preservation of American Antiquities q) 43 C.F.R. §7, Protection of Archaeological Resources 2) Buy America Build America Requirements DWSRF construction projects chosen for FFATA/Equivalency reporting must comply with the Buy America Build America provisions. Projects started prior to May 14, 2022, may be exempt. Visit the EPA website for more information on the BABA requirements and the waiver process at https://www.epa.gov/cwsrf/build-america-buy- america-baba. 3) Federal Economic and Miscellaneous Authorities a) Demonstration Cities and Metropolitan Development Act of 1996, Public Law 89-754 as amended, Executive Order 12372 b) Procurement Prohibitions under Section 306 of the Clean air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans c) Uniform Relocation and Real Property Policies Act, Public Law 91-646 as amended d) Debarment and Suspension Regulations, Executive Order 12549 and associated regulations (e.g., 71 F.R. 66431) e) H.R. 3547, Consolidated Appropriations Act, 2014, Public Law 113-76 as amended 4) Federal Social Policy Authorities a) Age Discrimination Act of 1975, Public Law 94-135 b) Title VI of the Civil Rights Act of 1964, Public Law 88-352 c) Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500 (the Clean Water Act) d) Section 504 of the Rehabilitation Act of 1973, Public Law 93-112 (including Executive Orders 11914 and 11250) e) Equal Employment Opportunity, Executive Order 11246 f) Disadvantaged Business Enterprise, Public Law 101-549 (the Clean Air Act), and Public Law 102-389 (the Clean Water Act) g) Section 129 of the Small Business Administration Reauthorization and Amendment Act of 1988, Public Law 100- 590 h) 42 USC 12101 et seq. the Americans with Disabilities Act of 1990 and associated regulations (including, without limitation, 28 C.F.R. Part 35) (ADA) i) The Contract Work Hours and Safety Standards Act (40 USC 327-333), as applicable j) The Genetic Information Nondiscrimination Act of 2008 (GINA), 42 USC s. 2000ff et seq. k) Federal Hatch Act, 5 USC 1501-1508 Page 275 of 325 «contract_number» – «Client» Page 30 of 41 Attachment III: Federal and State Requirements DWSRF Loan Contract (Municipal) v1 5) State Laws a) RCW 27.44, Indian Graves and Records b) RCW 27.53, Archaeological Sites and Resources c) RCW 36.70A, Growth Management Act d) RCW 39.04, Public Works e) RCW 39.10, Alternative Public Works Contracting Procedures f) RCW 39.12, Prevailing Wages on Public Works g) RCW 39.80, Contracts for Architectural and Engineering Services h) RCW 39.26.180, Contract Management i) RCW 42.56, Public Records Act j) RCW 42.17a, Campaign Disclosure and Contributions provision k) RCW 42.23, Code of Ethics for Municipal Officers-Contract Interests l) RCW 42.52, Ethics in Public Service m) Chapter 43.20 RCW, State Board of Health n) RCW 43.21C, State Environmental Policy Act o) RCW 43.70, Department of Health p) RCW 43.155, Public Works Project q) RCW 49.60, Washington’s Law against Discrimination, including, without limitation, RCW 49.60.530(3), Contractors and subcontractors with state for public works or for goods or services—Nondiscrimination requirements r) RCW 51, Industrial Insurance s) RCW 68.60, Abandoned and Historic Cemeteries and Historic Graves t) RCW 70.116, Public Water Systems Coordination Act of 1977 u) RCW 70.119, Public Water Supply Systems Certification and Regulation of Operations v) RCW 70.119A, Public Water Systems, Penalties & Compliances w) WAC 25-48, Archaeological Excavation and Removal Permit x) WAC 246-290, Group A Public Water Systems y) WAC 246-291, Group B Public Water Systems z) WAC 246-292, Waterworks Operator Certification Regulations aa) WAC 246-293, Water Systems Coordination Act bb) WAC 246-294, Drinking Water Operating Permits cc) WAC 246-295, Satellite System Management Agencies dd) WAC 246-296, Drinking Water State Revolving Fund Loan Program ee) WAC 173-160, Minimum Standards for Construction & Maintenance of Wells ff) WAC 173, Department of Ecology Rules gg) Governor’s Executive Order 21-02 , Page 276 of 325 «contract_number» – «Client» Page 31 of 41 Attachment IV: DBE Requirements DWSRF Loan Contract (Municipal) v1 ATTACHMENT IV: DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS GENERAL COMPLIANCE, 40 CFR, Part 33 BORROWER must comply with the requirements of Environmental Protection Agency's Program for Utilization of Small, Minority and Women's Business Enterprises (MBE/WBE) in procurement under this Contract, contained in 40 CFR, Part 33. BORROWER will use the directory of certified firms available through the Washington State Office of Minority and Women’s Business Enterprises to meet the requirements. FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D The following are exemptions from the fair share objective Requirements: • Grant and loan recipients receiving a total of $250K or less in EPA financial assistance in a given fiscal year. • Tribal recipients of Performance Partnership Eligible grants under 40 CFR Part 35, Subpart B. o There is a 3-year phase in period for the requirement to negotiate fair share goals for Tribal and Insular Area recipients. • Recipients of Technical Assistance Grants. The Fair Share Objectives or goals for the utilization of disadvantaged businesses negotiated with EPA by the WA Office of Minority Women Business are stated below. Construction 10% MBE 6% WBE Supplies 8% MBE 4% WBE Equipment 8% MBE 4% WBE Purchased Services 10% MBE 4% WBE BORROWER must accept the fair share objectives/goals stated above and purchase the same or similar construction, supplies, services and equipment, in the same or similar relevant geographic buying market as WA Office of Minority Women Business goals. SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C Pursuant to 40 CFR, Section 33.301, BORROWER will make the following good faith efforts whenever procuring construction, equipment, services and supplies under an EPA financial assistance agreement, and to ensure that sub- recipients, loan recipients, and prime contractors also comply. Records documenting compliance with the six good faith efforts shall be retained. The six good faith efforts shall include: A. Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local Government recipients, this will include placing the Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. B. Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date. C. Consider in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, State and Local Government recipients, this will include dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process. D. Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract is too large for one of these firms to handle individually. E. Use the services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Health. F. If the prime contractor awards subcontracts, also require the prime contractor to take the five good faith efforts in paragraphs A through E above. Page 277 of 325 «contract_number» – «Client» Page 32 of 41 Attachment IV: DBE Requirements DWSRF Loan Contract (Municipal) v1 MBE/WBE REPORTING, 40 CFR, Part 33, Sections 33.502 and 33.503 BORROWER is required to submit MBE/WBE participation reports to DOH, on a quarterly basis, beginning with the Federal fiscal year reporting period BORROWER receives the award and continuing until the project is completed. CONTRACT ADMINISTRATION PROVISIONS, 40 CFR, Section 33.302 BORROWER agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. Only procurements with certified MBE/WBEs are counted toward a Contractor’s MBE/WBE accomplishments. BIDDERS LIST, 40 CFR, Section 33.501(b) and (c) BORROWER is also required to create and maintain a bidders list if BORROWER of the loan is subject to, or chooses to follow, competitive bidding requirements. Please see 40 CFR, Section 33.501 (b) and (c) for specific requirements and exemptions. Section 33.501(b) of the rule is as follows: A recipient of a Continuing Environmental Program Grant or other annual grant must create and maintain a bidders list. In addition, a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund also must require entities receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to follow, competitive bidding requirements. The purpose of a bidders list is to provide the recipient and entities receiving identified loans who conduct competitive bidding with as accurate a database as possible about the universe of MBE/WBE and non- MBE/WBE prime and subcontractors. The list must include all firms that bid or quote on prime contracts or bid or quote on subcontracts under EPA assisted projects, including both MBE/WBEs. The bidders list must be kept until the grant project period has expired and the recipient is no longer receiving EPA funding under the grant. For entities receiving identified loans, the bidders list must be kept until the project period for the identified loan has ended. The following information must be obtained from all prime and subcontractors: (1) Entity’s name with point of contact; (2) Entity’s mailing address, telephone number, and e-mail address; (3) The procurement on which the entity bid or quoted, and when; and (4) Entity’s status as a MBE/WBE 1 or non-MBE/WBE. The exemption found at § 33.501(c) is as follows: A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal year, is exempt from the paragraph (b) of this Section requirement to create and maintain a bidders list. Also, a recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the paragraph (b) of this Section bidders list requirement of this subpart to an entity receiving an identified loan in an amount of $250,000 or less, or to an entity receiving more than one identified loan with a combined total of $250,000 or less in any one fiscal year. This exemption is limited to the paragraph (b) of this Section bidders list requirements of this subpart. 1 Qualified Women and Minority business enterprises may be found on the Internet at www.omwbe.wa.gov or by contacting the Washington State Office of Minority and Women’s Enterprises at 360-704-1181. Page 278 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 33 of 41 Attachment V: Certification Regarding Debarment DWSRF Loan Contract (Municipal) v1 ATTACHMENT V: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS United States Environmental Protection Agency Washington, DC 20460 The terms, “covered transaction, debarred, suspended, ineligible, lower tier covered transaction, person, primary covered transaction, principal, and voluntarily excluded”, as used in this attachment, are defined in the rules implementing Executive Order 12549, including 13 CFR § 400.109. You may contact DOH for help getting a copy of these regulations. BORROWER, defined as the primary participant and it principals, certifies by signing below that to the best of its knowledge and belief they: A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; B. Have not within a three-year (3) period preceding this CONTRACT, been convicted of or had a civil judgment against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; C. Are not presently indicted for or otherwise criminally or civilly charged by a government entity (federal, state, or local) with commission of any of the offenses described in this attachment; and, D. Have not within a three-year period (3) preceding the signing of this CONTRACT had one or more public transactions (federal, state, or local) terminated for cause or default. Prior to awarding contracts for the PROJECT, BORROWER must verify that neither the contractor’s business name(s) nor the names of its principals are in the Federal Excluded Parties List System for Ineligible Professionals and Debarred Contractors (www.SAM.gov). BORROWER must keep documentation in the PROJECT files and provide a copy to the DOH Contract Manager. BORROWER will include the language below without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: The lower tier contractor certifies, by signing this CONTRACT that neither it nor its principals are debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. I understand that a false statement on this certification may be ground for rejection of this proposal or termination of the award. In addition, under 18 USC Sec. 1001, a false statement may result in a fine or imprisonment for up to 5 years, or both. Typed or Printed Name & Title of Authorized Representative __________________________________________________________________ Signature of Authorized Representative Date I am unable to certify to the above statements. My explanation is attached. Page 279 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 34 of 41 Attachment VI: DWSRF Eligible Project Costs DWSRF Loan Contract (Municipal) v1 ATTACHMENT VI: DWSRF ELIGIBLE PROJECT COSTS Must be directly attributable to the project. 1. The costs for complying with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 2. DWSRF loan fees. 3. The purchase of a portion of another system’s capacity, if it is the most cost effective solution (limited to publicly owned (municipal) systems). 4. Construction of reservoirs (clear wells) that are part of the treatment process and are collocated with the treatment facility. 5. Construction of distribution reservoirs (finished water). 6. Cost associated with restructuring or consolidation of existing water systems by publicly owned water systems. 7. Main extensions to connect to safe and reliable sources of drinking water. 8. Cost associated with collecting and preparing environmental assessment documents to obtain local permits. 9. Direct labor including related employee benefits: a. Salaries and wages (at actual or average rates) covering productive labor hours of employees of the borrower (excluding the administrative organization of the operating unit involved) for periods of time actively or incidentally engaged in pre-design engineering, design engineering, construction engineering, acquisition of rights of way, and the cleaning, sterilization or bacteriological testing of water system components prior to public use. The costs of services rendered by employees generally classified as administration/project management of the loan are considered a direct cost only when such employees are assigned the types of services described above and shall be limited to 3% or less of the project loan amount. b. Employee benefits relating to labor are considered a direct cost of construction projects. The following items may be included as employee benefits: • F.I.C.A. (Social Security) –employer’s share. • Retirement benefits. • Hospital, health, dental, and other welfare insurance. • Life insurance. • Industrial and medical insurance. • Vacation. • Holiday. • Sick leave. • Military leave and jury duty. Employee benefits must be calculated as a percentage of direct labor dollars. The computation of predetermined percentage rates to be applied to current labor costs must be based on the average of total employee benefits and total labor costs for the prior fiscal year and adjusted by known current year variations. c. Other than work identified in Number 9.a, no costs associated with labor performed by the borrower’s employees, including force account work, are eligible for financing assistance. 10. Contract engineering, planning, design, legal, and financial planning services. The Department of Health reserves the right to declare ineligible legal costs that are unreasonable and disproportionate to the project. 11. Contract construction work. 12. Direct vehicle and equipment charges at the actual rental cost paid for the equipment or, in the case of city or county-owned equipment, at the rental rates established by the local government’s “equipment rental and revolving fund” following the methods prescribed by the division of municipal corporations. However, such costs must be charged on a uniform basis to equipment used for all projects regardless of the source of funding. Cities with a population of eight thousand or less not using this type of fund are allowed the same rates as used by the State Department of Transportation. 13. Direct materials and supplies. 14. Other direct costs incurred for materials or services acquired for a specific project are eligible costs and may include, but are not limited to such items as: a. Telephone charges. b. Reproduction and photogrammetry costs. c. Video and photography for project documentation. d. Computer usage. e. Printing and advertising. 15. Other project related costs include: • Competitive Bidding. • Audit. • Insurance. • Prevailing wages. • Attorney fees. • Environmental Review. • Archaeological Survey. Water system plan costs are not eligible for reimbursement. Small water system management program and plan amendments costs are eligible for reimbursement. Projects may be designed to accommodate reasonable growth. This is generally the 20-year projection included in the system’s water system plan or small water system management program. Page 280 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 35 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 ATTACHMENT VII: LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Wage Rate Requirements Under the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) Preamble With respect to the Clean Water and Safe Drinking Water State Revolving Funds, EPA provides capitalization grants to each state which in turn provides subgrants or loans to eligible entities within the state. Typically, the subrecipients are municipal or other local governmental entities that manage the funds. For these types of recipients, the provisions set forth under Roman Numeral I, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients’ compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section 3(ii)(A), below and for compliance as described in Section I-5. Occasionally, the subrecipient may be a private for profit or not for profit entity. For these types of recipients, the provisions set forth in Roman Numeral II, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients’ compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section II-3(ii)(A), below and for compliance as described in Section II-5. I. Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) For Subrecipients That Are Governmental Entities: The following terms and conditions specify how recipients will assist EPA in meeting its Davis-Bacon (DB) responsibilities when DB applies to EPA awards of financial assistance under the FY 2013 Continuing Resolution with respect to State recipients and subrecipients that are governmental entities. If a subrecipient has questions regarding when DB applies, obtaining the correct DB wage determinations, DB provisions, or compliance monitoring, it may contact Department of Health. If a State recipient needs guidance, they may obtain additional guidance from DOL’s web site at http://www.dol.gov/whd/. 1. Applicability of the Davis- Bacon (DB) prevailing wage requirements. Under the FY 2013 Continuing Resolution, DB prevailing wage requirements apply to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by a State water pollution control revolving fund and to any construction project carried out in whole or in part by assistance made available by a drinking water treatment revolving loan fund. If a subrecipient encounters a unique situation at a site that presents uncertainties regarding DB applicability, the subrecipient must discuss the situation with the recipient State before authorizing work on that site. 2. Obtaining Wage Determinations. (a) Subrecipients shall obtain the wage determination for the locality in which a covered activity subject to DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that subcontractors follow the wage determination incorporated into the prime contract. (i) While the solicitation remains open, the subrecipient shall monitor www.wdol.gov weekly to ensure that the wage determination contained in the solicitation remains current. The subrecipients shall amend the solicitation if DOL issues a modification more than 10 days prior to the closing date (i.e. bid opening) for the solicitation. If DOL modifies or supersedes the applicable wage determination less than 10 days prior to the closing date, the subrecipients may request a finding from the State recipient that there is not a reasonable time to notify interested contractors of the modification of the wage determination. The State recipient will provide a report of its findings to the subrecipient. (ii) If the subrecipient does not award the contract within 90 days of the closure of the solicitation, any modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be effective unless the State recipient, at the request of the subrecipient, obtains an extension of the 90 day period from DOL pursuant to 29 CFR 1.6(c) (3) (iv). The subrecipient shall monitor www.wdol.gov on a weekly Page 281 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 36 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 basis if it does not award the contract within 90 days of closure of the solicitation to ensure that wage determinations contained in the solicitation remain current. (b) If the subrecipient carries out activity subject to DB by issuing a task order, work assignment or similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation, the subrecipient shall insert the appropriate DOL wage determination from www.wdol.gov into the ordering instrument. (c) Subrecipients shall review all subcontracts subject to DB entered into by prime contractors to verify that the prime contractor has required its subcontractors to include the applicable wage determinations. (d) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a subrecipient’s contract after the award of a contract or the issuance of an ordering instrument if DOL determines that the subrecipient has failed to incorporate a wage determination or has used a wage determination that clearly does not apply to the contract or ordering instrument. If this occurs, the subrecipient shall either terminate the contract or ordering instrument and issue a revised solicitation or ordering instrument or incorporate DOL’s wage determination retroactive to the beginning of the contract or ordering instrument by change order. The subrecipient’s contractor must be compensated for any increases in wages resulting from the use of DOL’s revised wage determination. 3. Contract and Subcontract provisions. (a) The Recipient shall insure that the subrecipient(s) shall insert in full in any contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a treatment work under the CWSRF or a construction project under the DWSRF financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in § 5.1 or the FY 2013 Continuing Resolution, the following clauses: (1) Minimum wages. (i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this Section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this Section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Borrower and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. Subrecipients may obtain wage determinations from the U.S. Department of Labor’s web site, www.dol.gov. (ii)(A) The subrecipient(s), on behalf of EPA, shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The State award official shall approve a request for an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and Page 282 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 37 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), documentation of the action taken and the request, including the local wage determination shall be sent by the subrecipient (s) to the State award official. The State award official will transmit the request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of receipt and so advise the State award official or will notify the State award official within the 30-day period that additional time is necessary. (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the subrecipient(s) do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including the views of all interested parties and the recommendation of the State award official, to the Administrator for determination. The request shall be sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt of the request and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii)(B) or (C) of this Section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (2) Withholding. The subrecipient(s), shall upon written request of the EPA Award Official or an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. (3) Payrolls and basic records. (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing Page 283 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 38 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to the subrecipient, that is, the entity that receives the sub-grant or loan from the State capitalization grant recipient. Such documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29 CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on the weekly payrolls. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s) for transmission to the State or EPA if requested by EPA, the State, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this Section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the subrecipient(s). (B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this Section. (D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this Section available for inspection, copying, or transcription by authorized representatives of the State, EPA or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. (4) Apprentices and trainees-- (i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually Page 284 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 39 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. (5) Compliance with Copeland Act requirements. The Borrower must comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. (6) Subcontracts. The Borrower and/or subcontractor must insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. (8) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. Page 285 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 40 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 (9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes will be resolved according to the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, the U.S. Department of Labor, or the employees or their representatives. (10) Certification of eligibility. (i) By entering into this contract, Borrower certifies that neither it (nor he or she) nor any person or firm who has an interest in the Borrower’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC 1001. 4. Contract Provision for Contracts in Excess of $100,000. (a) Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in paragraphs (a)(1), (2), (3), and (4) of this Section in full in any contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a)(1) of this Section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a)(1) of this Section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a)(1) of this Section. (3) Withholding for unpaid wages and liquidated damages. The subrecipient, upon written request of the EPA Award Official or an authorized representative of the Department of Labor, shall withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b)(2) of this Section. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a)(1) through (4) of this Section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a)(1) through (4) of this Section. (b) In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the Subrecipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Further, the Subrecipient shall insert in any such contract a clause providing hat the records to be maintained under this paragraph shall be made available by the Page 286 of 325 DWL31572-0 City of Pasco Butterfield #2024-4372 Page 41 of 41 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job. 5. Compliance Verification (a) The subrecipient shall periodically interview a sufficient number of employees entitled to DB prevailing wages (covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR 5.6(a)(6), all interviews must be conducted in confidence. The subrecipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on request. (b) The subrecipient shall establish and follow an interview schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. Subrecipients must conduct more frequent interviews if the initial interviews or other information indicated that there is a risk that the contractor or subcontractor is not complying with DB. Subrecipients shall immediately conduct interviews in response to an alleged violation of the prevailing wage requirements. All interviews shall be conducted in confidence." (c) The subrecipient shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that contractors or subcontractors are paying the appropriate wage rates. The subrecipient shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, if practicable, the subrecipient should spot check payroll data within two weeks of each contractor or subcontractor’s submission of its initial payroll data and two weeks prior to the completion date the contract or subcontract. Subrecipients must conduct more frequent spot checks if the initial spot check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In addition, during the examinations the subrecipient shall verify evidence of fringe benefit plans and payments thereunder by contractors and subcontractors who claim credit for fringe benefit contributions. (d) The subrecipient shall periodically review contractors and subcontractors use of apprentices and trainees to verify registration and certification with respect to apprenticeship and training programs approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and (c) above. (e) Subrecipients must immediately report potential violations of the DB prevailing wage requirements to the Department of Health and to the appropriate DOL Wage and Hour District Office listed at https://www.dol.gov/whd/WHD_district_offices.pdf. Page 287 of 325 Pasco City Council January 20th, 2026 Regular Meeting Pa g e 2 8 8 o f 3 2 5 DWSRF Construction Loan Agreement - Butterfield WTP Improvements January 20th, 2026 Pasco City Council Pa g e 2 8 9 o f 3 2 5 Project Location Butterfield WTP & Intake W A St. S 1 2 th Av e Pa g e 2 9 0 o f 3 2 5 DWSRF Loan Agreement DWL31572-0 Construction Loan – Butterfield Water Treatment Plant Improvements TOTAL AWARD: $ 14,727,000 24-year loan term at 1.75% interest Principal loan forgiveness of 35% of total award Funding construction for the Raw Water Pump Station and Electrical Improvements and the WTP Pilot (Early Phases of WTP Improvements) Pa g e 2 9 1 o f 3 2 5 Questions?Pa g e 2 9 2 o f 3 2 5 AGENDA REPORT FOR: City Council December 31, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 1/20/26 FROM: Harold Stewart, City Manager City Manager SUBJECT: Approve Tri-City Regional Hotel-Motel Commission (TCRHMC) Tourism Promotion Area (TPA) 2026 Budget and Marketing Plan I. ATTACHMENT(S): 2026 TCRHMC Budget & Marketing Plan II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve the Tri-City Regional Hotel-Motel Commission (TCRHMC) Tourism Promotion Area (TPA) 2026 Budget and Marketing Plan prepared by Visit Tri-Cities. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background: The Tourism Promotion Area (TPA) was formed in late 2004 to boost hotel usage in the Tri-Cities; its activities to be funded by special hotel industry assessment. The current assessment is $3.00 per night. Washington State Department of Revenue (DOR) collects the TPA fees monthly through an agreement with the City, which is then transferred to Visit Tri-Cities for administration of the Regional TPA. The Interlocal Agreement (between Pasco, Kennewick and Richland) creating the Regional TPA requires the annual budget, and any expenditures from the TPA reserve account, to first be approved by the City Councils of the three cities. At City Council's Workshop held on November 24, 2025, Mr. Lewis, President and CEO of Visit Tri-Cities presented their 2025 annual report, an outline of Page 293 of 325 their 2026 work plan, as well as a request for approval to spend funds from the TPA Reserve Account and the proposed Tri-City Regional Hotel-Motel Commission (TCRHMC) 2026 Budget and Marketing Plan. At the November 17, 2025, Council meeting, Council approved two of the three requests from Visit Tri-Cities, which included approval of the 2026 Annual Work plan and the request to appropriate funds from the TPA Reserves account to fund eight specific projects. However, the approval of the TCRHMC 2026 and Marking plan was not included for Council consideration. V. DISCUSSION: Recommendation: Visit Tri-Cities is requesting that City Council approve the Tri-City Regional Hotel-Motel Commission (TCRHMC) 2026 Budget and Marketing Plan. Constants (time and other considerations): This was the first year that the Visit Tri-Cities presentation schedule was changed from twice a year to an annual basis and as a result, the formal approval of the TCRHMC 2026 Budget and Marketing Plan was overlooked by staff. Next Steps: Per the Interlocal Agreement, only two out of the three Cities approval is needed to pass the Budget and Work Plan, however, Visit Tri-Cities is asking for formal approval from Pasco City Council to make the approval of the TCRHMC 2026 Budget and Marketing Plan unanimous with the three Cities. Alternative: City Council may choose not to approve the TCRHMC 2026 Budget and Marketing Plan and the 2026 Budget and Marketing Plan will remain adopted through the approval from the Cities of Richland and Kennewick. Page 294 of 325 7130 W. Grandridge Blvd. Suite B Kennewick, WA 99336 509-735-8486 1-800-254-5824 www.VisitTRI-CITIES.com info@VisitTRI-CITIES.com September 29, 2025 Mr. Harold Stewart City of Pasco 525 N 3rd Ave Pasco, WA 99301 Dear Mr. Stewart, On behalf of the Tri-City Regional Hotel-Motel Commission, we are pleased to present the 2026 Tri- City Regional Hotel-Motel Commission Budget and Marketing Plan for approval by the Pasco City Council. We appreciate the opportunity to have face-to-face time with city leaders and look forward to our scheduled presentation for the City Council this year. Enclosed with this letter is a full copy of the report, with an executive summary on the next page outlining the purpose, timeline, and key components. Please feel free to reach out if you have any questions or need further clarification on any part of the report. Thank you for your ongoing support of the Tri-City Regional Tourism Promotion Area. It has been an extremely successful regional collaboration that has greatly enhanced the destination marketing impact for the Tri-Cities. Sincerely, Kevin Lewis President & CEO Enclosures Page 295 of 325 2 Executive Summary 2026 Tri-City Regional Hotel-Motel Commission Budget and Marketing Plan Purpose • As outlined in the Interlocal Cooperation Agreement for Establishment of the Tri-City Regional Tourism Promotion Area, Visit Tri-Cities presents a Budget & Marketing Plan to the Tri-City Regional Hotel-Motel Commission, detailing projected revenues and expenses for the programs supported by the funds collected from the Tourism Promotion Assessment (TPA). Timeline • The enclosed 2026 Budget and Marketing Plan received the unanimous support from the Commissioners present at the September 18, 2025 commission meeting. The plan recommended by the Commission is due to the each of the cities by no later than October 1st of each year. City Councils must review and approve the plan by December 31, 2025. Background • Visit Tri-Cities is a 501c6 organization whose contracted purpose is to foster tourism, support local businesses, and promote economic growth within the Tri-Cities region. Our mission is to “Fuel transformational growth in the Tri-Cities through tourism.” • VTC utilizes TPA revenues to promote the destination and ensure that visitors experience the best our cities have to offer while also bolstering the overall prosperity of the community. 2026 Forecast • TPA revenues are projected to reach approximately $2.4 million • Nationally travel and hotel occupancy levels are projected to decrease slightly • 2025 began with local occupancy and RevPAR outpacing state averages before mid-year softening indicates shifting market conditions • Ongoing marketing and sales efforts, combined with group bookings for both amateur and signature events continue to drive demand and position the region for long-term growth • Major developments including the expanded Three Rivers Convention Center, new hotels, The Flying Pickle facility and Pasco’s Aquatic Center, will enhance capacity and visitor experience Meeting & Convention Projections • 21,000 Room Nights • $7.3m Economic Impact • $2.8m Direct Hotel Spending • $110,119 Program Budget Sports & Tournament Projections • 22,000 Room Nights • $12.7m Economic Impact • $3.5m Direct Hotel Spending • $186,480 Program Budget Tourism Development & Marketing Programs • Targeted Multi-channel Campaigns & Seasonal Promotions • Advanced Digital Strategy with Geofencing & Retargeting • Data-Driven Insights to Optimize Reach & Reporting • Visitor Guide Distribution & Expanded Interactive Content • Enhanced Website Storytelling & Planning Tools • $637,232 Program Budget Page 296 of 325 Tri-City Regional Hotel-Motel Commission 2026 BUDGET AND MARKETING PLAN Page 297 of 325 TABLE OF CONTENTS Introduction 3 Acknowledgments 4 Tourism Outlook 5-6 Competitive Situation Analysis 7-8 2026 Group Sales Initiatives 8 Meetings and Conventions 9-10 Sports and Tournaments 11-12 Tourism Development 13-14 DMO Funding Comparative 15-17 Visit Tri-Cities TPA Budget 18 2 Page 298 of 325 INTRODUCTION Visit Tri-Cities is a 501(c)(6) organization whose contracted purpose is to foster tourism, support local businesses, and promote economic growth within the Tri-Cities region. Visit Tri-Cities (VTC) is supported by the Tri-City Regional Hotel-Motel Commission which was created in 2004. Through an interlocal agreement between the Cities of Kennewick, Pasco, and Richland, and the lodging properties within those cities, VTC was designated as the unified authority to strategically coordinate promotion and development of the destination. Funding is provided through a Tourism Promotion Assessment (TPA) which currently collects $3 for each night a guest stays in a hotel. As detailed in the agreement, TPA funds are designed to supplement, not replace other VTC funding sources such as lodging tax and membership dues. As a crucial player in economic development, VTC utilizes TPA revenues to promote the destination and ensure that visitors experience the best our cities have to offer while also bolstering the overall prosperity of the community. By bringing together resources from the three cities, VTC creates a strong collaborative platform, allowing us to brand and market the region effectively and attract a diverse range of tourists. In 2026, TPA revenues are projected to reach approximately $2.4 million. These funds are put to judicious use to fuel transformational growth in the Tri-Cities. Five strategic pillars guide the work of the organization: Strategic Sales, Effective Marketing, Collaborative Destination Development, Proactive Community Engagement, and Innovative and Meaningful Operations. These pillars encompass a wide array of endeavors including group sales initiatives, destination marketing and public relation campaigns, infrastructure development, hospitality training programs, and collaborative efforts to facilitate meetings, sports, and events that draw tourists throughout the year. Within the annual TPA budget, a Tourism Opportunity Fund has been established to ensure funds are available to support and incentivize key events to book their business here. Before being granted, recommended incentives are reviewed and approved by the Hotel-Motel Commissioners based on the number of hotel rooms each event books in the area. Incentive funds are paid out after successful completion of each event. Additional TPA revenues are allocated to conduct research and collect valuable data to better understand visitor trends and preferences, enabling VTC to make informed decisions for the continuous improvement in our promotional efforts and tourism offerings. The Tri-City Regional Hotel-Motel Commission stands as a vital force in enhancing the economic viability of our communities. Driving our region’s tourism sector forward yields numerous benefits for residents, businesses, and visitors alike. The following pages outline the TPA budget and marketing plan to demonstrate how these funds will be utilized in 2026. 3 Vision Inspire, reward, and celebrate the spirit of exploration and discovery. Mission Fuel transformational growth in the Tri-Cities through tourism. Please Note: The attached document reflects only those programs and costs associated with Tourism Promotion Area (TPA) funding. Visit Tri-Cities manages many other aspects of tourism development, which are funded by hotel and lodging taxes and membership investment. Such programs include, Rivershore Enhancement, Media Outreach, Visitor Services and Member Development. Tourism Promotion Area Marketing Plan prepared by Visit Tri-Cities for: CITY OF KENNEWICK CITY OF PASCO CITY OF RICHLAND Page 299 of 325 ACKNOWLEDGMENTS We greatly appreciate the time and dedication of our city partners and hoteliers who meet monthly to provide Visit Tri-Cities with support and direction on how to invest the proceeds from the tourism promotion assessments collected in Kennewick, Pasco, and Richland. Tri-City Regional Hotel-Motel Commission KENNEWICK Mike Brown, Hampton Inn Kennewick at Southridge Michael Garza, Hilton Garden Inn Kennewick Erin Erdman, Ex Officio, City of Kennewick PASCO Monica Hammerberg, Hampton Inn & Suites Pasco/Tri-Cities Jerry Beach, A1-Hospitality Harold Stewart, Ex Officio, City of Pasco RICHLAND Yesenia Galvez, LivAway Suites Lacey Stephens, Home2 Suites by Hilton Jon Amundson, Ex Officio, City of Richland The Tourism Promotion Area is Managed by Visit Tri-Cities. 4 Page 300 of 325 TOURISM 2026 NATIONAL OUTLOOK The U.S. travel and hotel industry faces a more guarded outlook for 2026 amid persistent inflation, softening demand, and international headwinds. STR and Tourism Economics revised national forecasts, with expectations of reduced occupancy and RevPAR and modest growth in ADR. 5 OCCUPANCY LEVELS Occupancy is expected to decrease slightly to around 62.3% in 2026, reflecting softer demand in cost-sensitive segments and slower recovery in some leisure and group markets. Growth in higher-rated segments and select urban destinations will help offset broader market declines. AVERAGE DAILY RATES (ADR): ADR is projected to rise about 1.0% in 2026, with gains concentrated in markets benefiting from strong event calendars, limited new supply, and higher-spending travelers. Competitive pricing pressure will keep rate growth below inflation in many areas. REVENUE PER AVAILABLE ROOM (REVPAR): RevPAR is expected to grow by approximately 0.8% in 2026, driven almost entirely by rate increases rather than occupancy gains. This modest growth reflects a maturing recovery cycle and the impact of ongoing economic and geopolitical headwinds. Ongoing inflation, geopolitical uncertainty, and restrictive visa and travel policies have weakened inbound international travel, with analysts estimating the U.S. could lose up to $29 billion in visitor spending in 2025. Despite these headwinds, demand is expected to be supported in 2026 by recovering group and business travel and strong event calendars. Amanda Hite, President of STR, commented that “unrelenting uncertainty and inflation, coupled with tough calendar comps and changing travel patterns, have caused lower demand,” but remains cautiously optimistic that once trade talks conclude and legislation takes effect, hotel performance could begin to recover. Overall, growth is expected to continue in 2026, though more tempered and uneven, with gains driven primarily by rate increases rather than occupancy recovery. Occupancy ADR RevPAR 63.0% $158.26 $99.72 62.5% $159.53 $99.62 62.3% $161.13 $100.42 Projected U.S. Hotel Key Performance Metrics* 2024 Actual 2025 Forecast 2026 Forecast 63.0% $155.46 $99.72 2023 Actual *STR August 2025 Forecast Page 301 of 325 TOURISM 2026 LOCAL OUTLOOK Despite national headwinds, the Tri-Cities tourism market remains relatively strong. Key performance indicators such as occupancy and RevPAR were up through mid-2025, with Tri-Cities among the top-performing destinations in the state. After a good start, the pace of convention and sports bookings has flattened and signs of the softening market hit home as occupancy levels decreased significantly in July. On the positive front, several new developments are poised to elevate the visitor experience in 2026 and beyond. Construction is underway on the $71 million expansion of the Three Rivers Convention Center, which will add 60,000 square feet of column-free exhibit space, and is set to be completed in Fall of 2026. The adjacent AC Marriott hotel also broke ground and will include 156 rooms, meeting space, and a rooftop bar/ restaurant, and is set to be complete Winter 2026. Additional hotel projects include the 126-room LivAway Suites completed last fall, the 107-room Home2Suites by Hilton Pasco Airport to be completed Spring 2026, and the renovation of the Clover Island Inn into a Hilton Spark property. On the recreation side, The Flying Pickle—a 50,000-square- foot indoor pickleball and entertainment facility—is under development in Badger Canyon and is expected to open in early 2026. It will feature 18–20 indoor courts, a restaurant, bar, lounge, and retail space, adding a new sports and leisure attraction to the region. The Pasco Public Facilities District is well underway on a new regional Aquatic Center, marking the commencement of a multi-phase development designed to enhance the region’s recreational infrastructure. Phase One of the project will include indoor pools, interactive water features, competition lanes, and multi-use community space. The facility is intended to serve both local residents and draw regional visitation through event-based and leisure travel. Construction is currently underway, with Phase One scheduled for completion in early 2026. Tri-Cities expects continued demand for amateur and signature sports events. With substantial investment in meeting space, lodging, and recreation, the region is positioning itself for future tourism growth in 2026. 6 2025 Performance January - June* OCC ADR RevPar RevPar vs Prior Year SEATTLE SPOKANE TACOMA TRI-CITIES VANCOUVER YAKIMA 68.7% 60.4% 60.7% 68.1% 66.4% 52.0% $195.24 $141.90 $142.07 $127.14 $132.37 $112.87 $134.16 $85.70 $86.22 $86.52 $88.14 $58.87 -1.6% +0.4% +9.2% +3.9% -2.8% -9.1% *STR Data January - June 2025 WALLA WALLA 53.0%$141.12 $74.72 +2.0% Page 302 of 325 COMPETITIVE SITUATION ANALYSIS In order to promote the Tri-Cities as a preferred destination for group, business and leisure travelers, it is important to recognize both the strengths and challenges within our community and to set sales strategies accordingly. Convention and Sports Destination Strengths • Variety of hotels and brands • Positive relationship between Visit Tri-Cities, hotels, and meeting venues • Three Rivers Convention Center and HAPO Center • Unique offsite event venues (i.e., wineries, museums, etc.) • Ample complimentary parking available • Sports facility infrastructure • Strong Sports Council • Opportunity funds available • Amenities and attractions that appeal to convention groups (i.e., wine experiences, outdoor recreation, etc.) • Centrally located in the Pacific Northwest and favorable weather conditions Destination Challenges • Lack of hotels capable of 150+ room block • Lack of resort-style hotels with ample meeting space • Meeting venues with larger meeting space in competing locations • Limited number of meeting rooms and exhibit space available under one roof • Number of hotel rooms within walking distance of Convention Center/large facilities • The number of hotel rooms available to groups due to inventory • Competing locations have expanded or have plans to expand their Convention Centers • Lack of sports officials • Lack of family friendly attractions pending the opening of the Pasco Aquatics Center • Competing locations have newly developed indoor/outdoor multi-use sports facilities with state-of-the-art amenities • Distance from I-5 corridor vs. competition • Lack of restaurants within walking distance of meeting venues Leisure Travel Destination Strengths • Tri-Cities Airport offers direct flights to 10+ major hubs • Centrally located within a few hours’ drive of Seattle, Portland, and Spokane • Washington’s largest wine region • Over 200 wineries within a one-hour drive • Cultivating 99% of Washington’s wine grapes • Award-winning and prestigious wineries • Year-round wine experiences, plus growing craft brewery and cider experiences • Home to the cutting-edge Wine Science Center • Watersports like boating, fishing, swimming, and paddle sports on the Columbia, Yakima, and Snake rivers • Seven scenic riverfront parks • Riverside dining and leisure cruises • Annual Tri-City Water Follies event • Miles of riverfront paths and trails for biking, running, and walking • Official American World War II Heritage City • Manhattan Project National Historic Park • CPCCo Planetarium • REACH Museum • Groundbreaking science at the Laser Interferometer Gravitational-Wave Observatory (LIGO) • Pasco Aquatics Center (Opening Summer 2026) • Annual Art in the Park Festival • Professional baseball and hockey games • Annual Benton-Franklin Fair & Rodeo • Tri-City Raceway • Farmers’ markets in every city, u-pick farms, and lavender fields • Nearly 300 days of sunshine each year • Ten golf courses • 30 hiking and mountain bike trails • 21 recreational parks • 67 miles of paved pedestrian and bike trails • Strong partnerships with local governments and businesses to enhance tourism assets • Growing tourism infrastructure Destination Challenges • Lower national visibility compared to other Pacific Northwest destinations • Heavy weekend traffic on I-90 • Drivers may encounter snowy winter conditions from key driving routes • Airfare can be pricey, with challenges in air travel • Summer temperatures can reach triple digits • Summer wildfire smoke can reduce air quality and impact outdoor activities • Seasonal high winds are common • Cold temperatures in December and January may limit outdoor activities • Perceived lack of family activities • Area’s reputation as a wine destination is weaker compared to Walla Walla • Limited late-night dining and entertainment options, nightlife is perceived as limited • Transportation challenges with spread-out communities and attractions • Limited walkable districts • Some attractions have limited accessibility • Lack of central gathering places • Many businesses are closed on Sundays and Mondays • No defined “downtown” or entertainment district • Shopping options are limited • B Reactor closed for tours pending structural updates • Lingering negative perceptions about Hanford exist • Lack of a major performing arts center or large indoor cultural venue • The area is seen as unsophisticated • The desert landscape is perceived as lacking greenery or trees 7 Page 303 of 325 COMPETITIVE SITUATION ANALYSIS Business Travel Destination Strengths • Less price sensitive for airfare and hotels • Mid-week demand complements weekend and convention groups • Recently expanded Tri-Cities Airport • Direct flights from Denver, Salt Lake City, Seattle, Phoenix, San Francisco, Las Vegas, Minneapolis, Los Angeles, and Burbank Destination Challenges • Destination choice not influenced by sales and marketing efforts • Mostly mid-week travel • Government budget cuts on travel spending Convention Bookings Sports Bookings TOTAL 20,343 18,601 2024 Actual 38,944 17,000 19,000 2025 Forecast* 36,000 Guestroom Productivity 21,000 22,000 43,000 2026 Goals 8 RFP Productivity QTR 1 QTR 2 QTR 3 QTR 4 TOTAL 49 39 42 2024 50 180 46 32 50* 2025 55* 178* 45* 45* 55* 2026 60* 205* LEADS ISSUED *Estimated Production Quarter 1 January - March • Host Sports Planner Customer Event in Portland • Launch ad campaign on PlayEasy • Customer Event in Olympia • Olympia Sales Blitz • MPI Cascadia Conference • Professional Convention Management Association Convening Leaders • Northwest Event Show • Launch digital ads targeting MPI attendees • Launch meeting planner incentive package 2026 GROUP SALES INITIATIVES Quarter 2 April - June • Sports ETA Event Symposium • E-Sports Conference • Washington Society for Association Excellence Convention • Ad campaign targeting WSAE Members • Launch first time sports event incentive • Sports Relationship Invitational Quarter 3 July - September • Sports Relationship Conference • Publish Sports Facilities Map • Host Customer Event for Tri-Cities Sports Council • Bring Your Meeting Home campaign • Cvent retargeting campaign Quarter 4 October - December • TEAMS Conference • Launch digital ads targeted at TEAMS attendees • Direct mail “Remember Tri-Cities” gift • Olympia Sales Blitz *Estimated Production Page 304 of 325 21,000 PROJECTED GUEST ROOMS $7,310,350 ESTIMATED ECONOMIC IMPACT* $2,848,014 ESTIMATED DIRECT HOTEL SPENDING* 2026 Actions SALES BLITZES Develop two separate multi-day sales blitzes in Spring (Olympia) and Fall (Olympia). CUSTOMER EVENTS Organize meeting planner customer luncheon in the spring to promote the Tri-Cities as a destination. Event to be held in conjunction with Spring Sales Blitz. MEETING PLANNER FAM TOURS Host qualified meeting planners for individual and group, customized FAM tours. RELATIONSHIPS Continue staff attendance at Washington Society for Association Excellence (WSAE), Meeting Professionals International (MPI) Washington Chapter and Professional Convention Management Association (PCMA) meetings to strengthen relationships with key meeting planners. Staff will continue to serve on industry boards and committees such as WSAE. ADVERTISING Digital campaigns of industry tradeshows and site campaigns of meeting professionals by geographic location. MEETING INCENTIVES Utilize the opportunity fund specifically to offset costs for new group business and groups that block more than 300 rooms per night city-wide. Create meeting planner incentives and develop a “deals” page outlining any hotel sponsored incentives. REGIONAL/STATE/NATIONAL CONFERENCES AND TRADESHOWS Attend the WSAE Conference. In addition, attend MPI Cascadia Annual Conferences, Professional Convention Management Association Convening Leaders, and the Northwest Event Show. Participate in additional sponsorship opportunities at each of these events for increased exposure. SKYNAV AND KUULA Convention sales department will leverage the SkyNAV and Kuula platforms to promote Tri-Cities and meeting venues to convention professionals. The interactive tour highlights points of interest and will be included with all electronic proposal packets, digital Meeting Planner Guide as well as communications to meeting groups. CONVENTION CENTER EXPANSION AND MEETING SPACE RENOVATIONS As meeting venues expand and receive renovations, staff will focus on pursuing new business opportunities to maximize the enhanced meeting spaces. MEETINGS & CONVENTIONS 9 *Revenue impacts are calculated using Destination International’s Event Impact Calculator, an industry-wide standard tool. Page 305 of 325 $110,119 ADVERTISING • MPI site retargeting campaign: $9,350 (Jan) • Cvent Diamond Listing: $13,000 (Sept) • Digital targeting campaigns of industry tradeshows: $6,000 ($500 per month) • Cvent retargeting campaigns: $12,000 (April) • Meeting News NW: $5,000 (March) • Meeting Planner Guide: $5,000 (March) Total: $50,350 TRAVEL • Washington Society of Association Excellence, attend one association meeting: $500 (Sept) • Washington Society of Association Excellence Conference: $1,400 (May) ($700 per staff x 2) • Meeting Planners International Annual Convention: $1,100 (March) • Meeting Planners International, association meeting: $500 (May) • Olympia Spring Sales Blitz: $2,500 (March) ($500 per staff x 5) • Fall Sales Blitz: $2,000 (Oct) ($500 per staff x 4) • Sales Education and Training Conferences: $8,000 (March and July) (hotels, meals, flight at $2,000 per session per staff member x 4) • National Meeting Professionals Tradeshow: $1,500 (Aug) • Northwest Event Show: $2,300 (Jan) ($1,150 per staff x 2) • Professional Convention Management Association Convention: $2,000 (Jan) • Mileage for site inspections: $480 ($40 per month) Total: $22,280 TRADE SHOWS • Meeting Planners International (MPI) registration for hosted buyer program: $2,000 (Jan) • Washington Society for Association Excellence Conference Registration: $450 (May) • WSAE Conference Sponsorship: $1,775 (May) • National trade show targeted at meeting planners, travel media and travel advisors: $2,000 (March) • Northwest Event Show booth registration: $4,000 (Sept) • Professional Convention Management Association Convening Leaders: $2,000 (Dec) • Association meetings: $500 (Feb, May, Sept) Total: $12,725 STAFF DEVELOPMENT • Sales Education and Training Conferences: $6,000 (Feb, March, July) ($1,000 registration per staff x 4) • Sales Team Training: $4,000 • Destinations International Professional Management Certifications: $1,190 ($595 registration per staff x 2) Total: $11,190 PROMO ITEMS • Amenities: $800 (Feb: $400, Aug: $400) • Logo’d items: $700 (Feb: $350, Aug: $350) Total: $1,500 DUES AND SUBSCRIPTIONS • WSAE Gems sponsorship: $3,700 (Nov) • Meeting Planners International: $495 (Dec) • Professional Conference Management Association: $485 (Nov) • National Tour Association: $700 (Feb) • Religious Conference Management Association Dues : $195 (July) • Military Reunion Network: $699 (May) • DI MINT subscription: $5,800 (Jan) Total: $12,074 TRAVEL20% TRADE SHOWS 12% DUES AND SUBSCRIPTIONS 11% PROMO ITEMS 1% STAFF DEVELOPMENT 10% 46% MEETINGS & CONVENTIONS PROGRAM TOTAL 10 ADVERTISING Page 306 of 325 22,000 PROJECTED GUEST ROOMS $12,682,169 ESTIMATED ECONOMIC IMPACT* $3,540,719 ESTIMATED DIRECT HOTEL SPENDING* 2026 Actions SPORTS COUNCIL Organize and administer activities for the Tri-Cities Sports Council. ADVERTISING Place print and digital advertising as appropriate in publications such as: Playeasy, Sports Events, Sports Destination Management, and Sports Planning Guide. SALES BLITZ Sales calls in the Portland or Seattle metropolitan areas in Q1. PROMOTE RESOURCES Update the sports facilities guide, provide e-version, and QR code links for consumer access. VIRTUAL TOURS SkyNav and Kuula tour links will be promoted in our communications to sports groups. SkyNav and Kuula allows tournament directors to experience the Tri-Cities virtually and the ability to see first-hand the venues, amenities, attractions, and accommodations that would be available to their teams. The interactive tours highlight points of interest with image galleries, videos, and information to aid tournament directors in understanding the advantages of selecting the Tri-Cities. OPPORTUNITY FUND Utilize the opportunity fund specifically to offset tournament costs for groups that block more than 300 rooms per night city-wide. TRADESHOWS Promote the Tri-Cities as a premier sports destination at national tradeshow events such as TEAMS, S.P.O.R.T.S. Relationship, S.P.O.R.T.S. Invitational, and Sports ETA. CUSTOMER EVENTS Sponsor event at annual national sports tradeshows, such as TEAMS and Sports ETA Symposium. In addition, host customer event luncheon in conjunction with the Sales Blitz . BIDDING FEES Bid on new regional/national level tournaments that demand bidding fees to host events. NEW BUSINESS As expansion of convention center meeting space progresses, staff will pursue indoor tournaments held during the shoulder season. In addition, after hosting two years of the IRONMAN triathlon, staff will pursue more outdoor endurance race events. SPORTS & TOURNAMENTS 11 *Revenue impacts are calculated using Destination International’s Event Impact Calculator, an industry-wide standard tool. Page 307 of 325 $186,480 ADVERTISING • Ads to support tournaments: $925 (Jan: $100, March: $150, May: $325, Nov: $200, Dec: $150) • Sports Events: $40,000 • Sports Events Magazine featured listing: $6,000 (Oct: $3,000 & Dec: $3,000) • Sports Planning Guide site inspection feature: $2,000 (July) • Playeasy platform destination spotlight: $3,250 • Printed Sports Facilities Map: $600 (Jun) Total: $52,775 BID FEES AND EVENT SUPPORT • Parallex Soccer: $10,000 (June) • National Softball Association Ice Breaker: $3,000 (Apr) • National Softball Association State Championships: $4,000 (July) • IRONMAN: $14,000 (Oct) • WIAA State Fall Championships: $5,000 (Nov) • WIAA State Spring Championships: $5,000 (Jun) • NWAC Championships: $2,000 (Mar) • Tri-City Water Follies: $10,000 (Aug) • USA BMX Championships: $5,000 (Sept) Total: $58,000 TRAVEL • Sports ETA Symposium: $4,875 (May) ($1,625 per staff x 3; hotel: $200 x 4 = $800, airfare:$700, meals: $125) • TEAMS Conference: $5,235 (Oct) ($1,745 per staff x 3) • S.P.O.R.T.S Relationship Conference: $1,745 (Sept) • S.P.O.R.T.S Invitational: $1,800 (June) • EsportsTravel Summit: $1,490 (June) • Sports Sales Blitz/Customer Event: $1,680 ($560 per staff x 3) • Sales Education and Training Conferences: $6,000 (May and July) ($2,000 per staff x 3) • Mileage for site inspections: $300 Total: $23,125 TRADE SHOWS • TEAMS Conference: $15,000 (Feb) (two staff members: $3,750, TEAMS Conference sponsorship: $11,250) • EsportsTravel Summit registration: $3,000 (Feb) • S.P.O.R.T.S Relationship Conference: $8,000 (Mar) (registration: $1,500, sponsorship: $6,500) • Sports ETA Symposium: $14,185 (Dec) (three staff members: $4,185, sponsorship: $10,000) • S.P.O.R.T.S. Invitational registration: $2,000 (Apr) Total: $42,185 STAFF DEVELOPMENT • Sales Education and Training Conferences: $3,000 (May and July) ($1,000 registration per staff x 3) Total: $3,000 PROMO ITEMS • Sports Amenities: $1,200 (April: $600 and Sept: $600) Total: $1,200 DUES AND SUBSCRIPTIONS • Sports ETA Membership: $1,195 (Dec) Total: $1,195 PLATFORM FEES • Playeasy Digital Platform: $5,000 (March) Total: $5,000 SPORTS & TOURNAMENTS PROGRAM TOTAL TRAVEL12% TRADE SHOWS 23% STAFF DEVELOPMENT 2% PROMO ITEMS 0.6% ADVERTISING23% DUES AND SUBCRIPTIONS 0.6% PLATFORM FEES 3% BID FEES AND EVENT SUPPORT 31% 12 Page 308 of 325 SOCIAL MEDIA • Boost top-performing content with Sprout Social. • Evaluate Threads and niche online travel communities. • Focus on user-generated content and branded hashtags to amplify authentic voices. STORYTELLING • Strengthen destination perception through storytelling and thought leadership. • Content streams: • Official Visitor Guide • Blog features • Social media stories • Enhanced website storytelling TECHNOLOGY • Improve visitor experience, strengthen marketing, and guide strategic decision-making through continued use of platforms supporting: • Itinerary planning • Immersive digital experiences • Interactive mapping • Efficient asset management WEBSITE • 2024 relaunch highlights: • English–Spanish translation • Intuitive navigation funnel • Hero imagery for emotional connection • Clearer presentation of experience categories • 2026 Focus: • Ongoing analysis of user behavior • Interactive maps, curated itineraries • Video and testimonial integration TOURISM DEVELOPMENT 2026 Actions PROMOTE THE DESINATION • Continue refining five experience categories: Wineries & Vineyards, River Recreation, History & Science, Events & Entertainment, Sunshine & Open Spaces. • Add seasonal/niche campaigns: • Shoulder-season wine events • Agritourism experiences • Heritage tourism packages • Target drive markets while expanding fly markets to align with new hotels and convention expansion. ADVERTISING • 2026 mix: Majority digital with select traditional (e.g. print) where they complement strategy. • Digital focus: Geofencing, retargeting, lookalike audiences, pixel tracking. • Traditional support: Signature event promotions in lifestyle/travel magazines. • Benchmarks: • 446M impressions achieved in 2024 • $16.7M revenue from ad-driven bookings • ROI: $37 to hotels / $352 to community per $1 ad spend DATA-DRIVEN MARKETING • Leverage Datafy partnership to layer geolocation and event audience insights. • Use visitor data for: • Smarter retargeting • Expanded reporting • 2025 Performance (as of June): • Display CTR: 0.30% (industry avg: 0.12–0.18%) • Native ads CTR: 0.72% (industry avg: 0.14–0.25%) • Video/audio completion rate: 83.44% (benchmark 75%) PRINT & DIGITAL COLLATERAL • Enhance website usage and visitor decision making with rich content and interactive tools, including: • Official Tri-Cities Visitor Guide (print and digital). • Digital content expansion: itineraries, interactive maps, and video vignettes. PUBLIC & MEDIA RELATIONS • Expand influencer campaigns with measurable KPIs (engagement, conversions, content use). • Proactively pitch stories on new developments: • AC Marriott Hotel opening • Convention Center expansion • Pasco Aquatics Center • Leverage earned media: 2024 results showed a 161% increase in placements and 3.6B audience reach. 13 Page 309 of 325 $637,232 ADVERTISING • Cohesive multi-channel campaign to include a mix of digital ads targeting leisure travelers in strategically selected geographic markets: $335,000 • Social Media Advertising and Management: $11,900 • Visit Tri-Cities Visitor Guide Enhancements: $40,000 • Washington State Official Visitor Guide: $7,500 (Jan) (*Remainder Paid by Hotel-Motel Tax) • Wine specific digital advertising campaign to complement presence at Taste Washington targeting western Washington leisure travelers: $10,000 • Creative Multi-Channel Campaign Production: $25,000 Total: $429,400 TRAVEL • Tri-Cities Wine Tourism Council – Taste Washington: $1,900 ($950 per staff x 2) • Consumer Travel Show: $1,600 (Oct) ($800 per staff x2) • Marketing, Technology and PR Training: $8,000 (Feb, Mar, May and Jun) ($2,000 per staff x4) Total: $11,500 TRADE SHOWS • Taste Washington: $20,000 • Consumer Travel Show: $2,500 Total: $22,500 WEBSITE/INTERNET MARKETING • Invest in Search Engine Optimization for website: $36,000 ($3,000 monthly) Total: $36,000 COMPUTER LICENSING FEE • Website Hosting Fee: $20,400 ($1,700 monthly) • iDSS: $14,000 ($3,500 per quarter – Mar, Jun, Sept, Dec) • Proposal Path/Blue Buzzard: $1,560 ($130 monthly) • Management of Digital Assets: $15,015 (June) • Marketing and Creative Platforms: $9,790 ($814 monthly) • Visitor Kiosks and Information Platforms: $30,000 • Destination Visitation Data & Research: $32,177 ($2,681 monthly) Total: $122,942 STAFF DEVELOPMENT • Marketing, Technology and PR Training: $8,000 (Jan, Feb, May, June, July, Sept) ($1,500 per registration x6) • Destinations International Professional Management Certifications: $1,190 ($595 registration per staff x 2) Total: $9,190 PROMO ITEMS • Registration Bags: $3,700 (Feb and Aug) • Logo’d Swag: $2,000 (Apr and Aug) Total: $5,700 TOURISM DEVELOPMENT PROGRAM TOTAL TRAVEL2% TRADE SHOWS 4% STAFF DEVELOPMENT 1% PROMO ITEMS 1% ADVERTISING67%WEBSITE/INTERNET MARKETING 6% COMPUTER LICENSING FEE 19% 14 Page 310 of 325 15 DESTINATION MARKETING ORGANIZATION (DMO) FUNDING COMPARATIVE Overall Budget The following chart provides historical look at a total budget comparative (including Hotel Motel Tax, Membership Investments and Tourism Promotion Assessment) in key competitive markets. $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 $5,400,000 $4,300,000 $1,360,000 SEATTLE SPOKANE TACOMA PIERCE COUNTY YAKIMA VALLEY $2,500,000 VANCOUVER WALLA WALLA $3,400,000 TRI-CITIES $4,056,421 $38,000,000 VANCOUVER Hotel-Motel Tax Investments The following chart provides historical look at hotel-motel tax investments in key competitive markets. $2,400,000 $1,800,000 $1,200,000 $600,000 $0 $0 SEATTLE SPOKANE TACOMA PIERCE COUNTY YAKIMA VALLEY TRI-CITIES WALLA WALLA $1,791,000 $831,229 $1,000,000 $850,000 $645,000 $2,100,000 Page 311 of 325 16 DESTINATION MARKETING ORGANIZATION (DMO) FUNDING COMPARATIVE The following chart provides historical look at a tourism promotion assessments in key competitive markets. $24,000,000 $18,000,000 $12,000,000 $6,000,000 $0 $24,000,000 $3,202,000 $856,000 $1,300,000 2,300,000 1,300,000 $465,000 TPA Budget SEATTLE SPOKANE TACOMA PIERCE COUNTY YAKIMA VALLEY VANCOUVER WALLA WALLA TRI-CITIES Page 312 of 325 17 APPENDIX COMPETING CITY Visit Seattle $38,000,000 15,662 $2,426.25 Visit Spokane $5,400,000 5,774 $935.23 Visit Tacoma Pierce County $4,300,000 6,524 $659.10 Yakima Valley Tourism $4,056,421 3,301 $1,228.85 Visit Tri-Cities $3,400,000 3,670 $926.43 Visit Vancouver $2,500,000 3,065 $815.66 Visit Walla Walla $1,360,000 991 $1,372.35 DMO BUDGET NUMBER OF HOTEL ROOMS $ SPENT PER ROOM DESTINATION MARKETING ORGANIZATION (DMO) FUNDING COMPARATIVE The following chart provides historical look at a total budget comparative (including Hotel Motel Tax, Membership Investments and Tourism Promotion Assessment) in key competitive markets. Visit Tacoma Pierce County $2,100,000 6,524 $321.88 Visit Spokane $1,791,000 5,774 $310.18 Visit Vancouver $1,000,000 3,065 $326.26 Visit Walla Walla $850,000 991 $857.72 Visit Tri-Cities $831,229 3,670 $226.50 Yakima Valley Tourism $645,000 3,301 $195.40 Visit Seattle $- 15,662 $- COMPETING CITY HOTEL/MOTEL TAX NUMBER OF HOTEL ROOMS $ SPENT PER ROOM The following chart provides historical look at hotel-motel tax investments in key competitive markets. Visit Seattle $24,000,000 15,662 $1,532.37 Visit Spokane $3,202,000 5,774 $554.55 Visit Tri-Cities $2,300,000 3,670 $626.70 Yakima Valley Tourism $1,300,000 3,301 $393.82 Visit Vancouver $1,300,000 3,065 $424.14 Visit Tacoma Pierce County $856,000 6,524 $131.21 Visit Walla Walla $465,000 991 $469.22 COMPETING CITY TPA NUMBER OF HOTEL ROOMS $ SPENT PER ROOM The following chart provides historical look at a tourism promotion assessments in key competitive markets. Page 313 of 325 EXPENSES 2025 BUDGET 2025 FORECAST 2026 PROJECTED BUDGET 2026 BUDGET VARIANCE TO 2025 BUDGET 2026 BUDGET VARIANCE TO 2025 FORECAST APPENDIX VISIT TRI-CITIES 2026 TPA BUDGET REVENUES 2025 BUDGET 2025 FORECAST 2026 PROJECTED BUDGET 2026 BUDGET VARIANCE TO 2025 BUDGET 2026 BUDGET VARIANCE TO 2025 FORECAST 18 City of Kennewick $920,000 $996,517 $980,000 60,000 $(16,517) City of Richland $812,000 $854,489 $862,000 50,000 $7,511 City of Pasco $568,000 $569,820 $558,000 -10,000 $(11,820) 1000 Total Revenues $2,300,000 $2,420,826 $2,400,000 100,000 $(20,826) 18 5010 Salaries $851,000 $847,605 $905,000 $54,000 $57,395 5012 401k $43,700 $38,500 $45,250 $1,550 $6,750 5015 Health Insurance $146,580 $134,553 $156,792 $10,212 $22,239 5030 Payroll Taxes $86,000 $76,220 $88,000 $2,000 $11,780 5035 Accounting Services $25,747 $25,745 $25,740 $(7) $(5) 5050 Telephone & Toll free $7,200 $6,579 $7,200 $- $621 5060 Office Expense $9,000 $7,131 $9,000 $- $1,869 5070 Office Insurance $7,140 $5,650 $7,140 $- $1,490 5080 Postage $6,500 $4,603 $6,500 $- $1,897 5090 Equipment Upkeep $20,000 $18,597 $25,020 $5,020 $6,423 5092 Vehicle Expenses $6,000 $5,800 $9,000 $3,000 $3,200 5095 Capital Expenditures $15,000 $13,140 $15,000 $- $1,860 5100 Building Expenses $45,000 $44,268 $52,000 $7,000 $7,732 5105 Legal/Professional $3,500 $3,100 $4,000 $500 $900 5110 Dues & Subscriptions $13,409 $11,148 $14,070 $661 $2,922 5112 Platform Fees $87,000 $87,319 $95,000 $8,000 $7,681 5115 Computer Licensing Fee $37,000 $35,132 $37,000 $- $1,868 5225 Website Maintenance $38,000 $36,831 $38,000 $- $1,169 5230 Training $17,500 $17,500 $25,880 $8,380 $8,380 5290 Advertising/Marketing $531,304 $513,000 $533,693 $2,389 $20,693 5300 Promo Items $8,400 $7,500 $8,400 $- $900 5310 Bid Fees & Event Support $58,000 $47,416 $58,000 $- $10,584 5315 Travel $53,760 $43,225 $56,905 $3,145 $13,680 5317 Trade Shows $73,260 $65,450 $77,410 $4,150 $11,960 5500 Opportunity Fund $110,000 $64,905 $100,000 $(10,000) $35,095 Total Expenses $2,300,000 $2,160,917 $2,400,000 $100,000 $239,083 Page 314 of 325 7130 W. Grandridge Blvd., Ste. B Kennewick, WA 99336 (509) 735-8486 | (800) 254-5824 VisitTri-Cities.com Page 315 of 325 Page 1 of 8 TO: Mayor, Charles Grimm Members of the City Council FROM: Harold Stewart, City Manager DATE: January 20, 2026 City Manager: Two public input meetings were held regarding the proposed water and sewer rate increases and the connection fee increase. There were several in attendance at the meeting held for developers, and a few citizens attended the general public input meeting. Thank you to many of the Council members who also attended. A few recognitions of appreciation were held honoring the retirement of City Clerk Debby Barham. Though I have only had the opportunity to work with her for a few months I have come to appreciate her passion for service and her positive demeanor. We also look forward to Krystle Shanks taking on the role of City Clerk. The City Manager will be joining the Mayor, a couple of Council members, key staff, and our Legislative Lobbyist in Olympia to speak with State Representatives on several bills and initiatives with potential impact to the Pasco community. While the Department Heads will provide updates specific to their responsibilities here are several priorities identified by the City Manager since taking office being worked on in addition to the regular day to day operational duties (Changes/updates from the last report are highlighted in red): 1. Broadmoor Development- Meetings are ongoing discussing developer interest, progress, and potential City partnership 2. HAPO Center- Lease expired after December 2025. County and City discussing future, roles and partnership going forward. Lease extension has been provided to the County. 4. Animal Shelter- Serves the entire Tri-Cities. Cost sharing between the three jurisdictions needs re-evaluated and agreed upon. ACA meeting will be held on February 12th and all City Managers will attend to discuss the role and future needs of the Committee. 5. Transportation Tab Fees- Will be placed on February Regular City Council meeting as directed by Council at the November 17th Council meeting. 6. Water and Sewer Rates- Consultant analysis and recommendations are complete. Public input meetings were held and this item is on the January 20th agenda as directed by Council. 7. Union Contracts- Currently negotiating. Page 316 of 325 Page 2 of 8 8. Hiring City Attorney-Position has been reposted with a first review date in mid- February. 9. Grievances/Personnel Matters 10. Reviewing Boulevard Design, Traffic study, Lighting, and Curb, Gutter, Sidewalk Policies-All in various stages of review. See Community and Economic Development Directors report for more information. 11. Evaluating Executive Structure (CM, DCM, ACM) and responsibilities-Ongoing. Potential redistribution of department reporting structure. 12. Consideration of annexation into Library District-Council, Library Board and County Commission have all approved this to go on the ballot. County staff was able to complete the necessary actions to place this on the February 2026 Special Election Ballot. 13. Consideration of annexation into Conservation District- Was to be discussed at the October 27th Council Agenda, however, staff has been working with legal counsel and the Conservation District to verify the proper process and actions. There is some unclarity due to State law language and the fact the City opted out of the District years ago. Will come forward once the proper process is verified. 14. Water Conservation Program- Since the August 25 presentation, staff have advanced key water conservation initiatives, including public outreach, irrigation retrofits, and updated development and boulevard standards. Work is also underway on a City facility water audit, landscape conversion projects, and potential residential incentives to promote xeriscaping. 15. Court Street Traffic Concerns- Traffic Radar signs have been installed and are collecting data. Engineer’s recommendation was to analyze the data after 6 months, which will be January of 2026. Upon completion of data collection staff will need time to analyze and will discuss results with Council in February or March of 2026. Staff has begun review of the data. 16. Pop up Vendors- Ongoing monitoring by staff and coordination with the Health District. Presentation by the Health Department at the Jan. 20th Council meeting. 17. FY 27/28 Budget-Staff is beginning the process of establishing a timeline for budget development, and internal processes for preparation. Meetings attended since the last report: Communication meetings with the Mayor, Mayor Pro Tem, and all Council members; attended the Purple Heart Award Ceremony for Officer Hanks; monthly communication meeting with Pasco Chamber Director; toured local Emergency Management Center; and many other internal communication and project meetings. Human Resources Director, Sara Matzen City of Pasco – Monthly HR Council Report Reporting Month: December 2025 1. Headcount vs. Budgeted Positions • Active Headcount: 446 • Budgeted Positions: 510.35 • Variance: (-64.35) • 2. Recruitment Activity • Open Positions (as of month-end): 18 • Positions Filled This Month: 9 Page 317 of 325 Page 3 of 8 • Critical/Hard to Fill positions • o Senior Traffic Engineer – Position is looking for specific license & exp. with traffic design that is hard to find. Involving staffing agency for assistance o Sr. Plans Examiner – Reposting position with new 2026 wages, anticipating higher engagement with refresh o Senior Engineer – Hard to find related experience for the role – specific engineering license. Involving staffing agency for assistance. Additionally, 2026 wage update will help 3. Medical Claims – Trends & Budget to Actual (will be 2mos prior data) – Disclaimer: The figures provided do not include pharmacy costs as there were technical issues with the pharmacy vendor, and they could not provide the figures for November. • YTD Claims (Budget vs. Actual): $6,838,591 vs. $10,222,620 • % of Budget Used YTD: 149.5% • 12-Month Trend Snapshot: 4. Monthly Medical Claim Costs by Plan (Paid through 11/30/2025) - Disclaimer: The figures provided do not include pharmacy costs as there were technical issues with the pharmacy vendor, and they could not provide the figures for November. Page 318 of 325 Page 4 of 8 5. Leave Counts (Aggregate Only and only those currently out on continuous or intermittent) – • Protected Leave of Absence (PFML, FMLA) o Intermittent Schedule: 5 Employees o Continuous: 18 employees • Workers’ Compensation: 1 employee 6. Turnover Rate (YTD) • Voluntary: 11.66% • Involuntary: 2.91% • Total Turnover YTD: 15.70% • Average Length of Service at separation: 4.5 years 7. Strategic Projects / Updates Human Resources – Monthly Update Human Resources continues to balance complex, long-term initiatives with immediate operational and compliance responsibilities, while preparing for several major transitions in 2026. • Labor Relations and Collective Bargaining: All materials are prepared to present two one-year collective bargaining agreements to Council at the January 26 meeting. • Recruitment and Workforce Planning: The in-house City Attorney position was reposted during the past week. Recruitment efforts are also underway for a Finance Manager and several additional positions within City Hall. At the same time, HR has begun planning for upcoming PFD recruitment efforts, which are expected to require significant coordination and resources before the opening. • Benefits Administration and Transition to New TPA: The City is now officially live with its new third-party administrator, Premera. The transition has begun smoothly overall, particularly given the scope of the change. As expected with any TPA conversion, HR is currently addressing and resolving initial system and process adjustments to ensure continued stability for employees. • Employee Handbook and Policy Work: Work continues toward finalizing the Employee Handbook, which remains a substantial undertaking due to the need to align City policies with state law, Administrative Orders, and collective bargaining requirements. Coordination with the City Manager’s Office will follow once the remaining sections are finalized. • Compliance and Year-End Closeout: The department remains focused on year-end compliance activities, including final policy updates and regulatory readiness as the City transitions into the new calendar year. Page 319 of 325 Page 5 of 8 • Planning Ahead: In parallel with closing out 2025 obligations, HR is actively developing 2026 departmental goals and workload planning to support anticipated recruitment demands, labor activity, and ongoing compliance requirements. Finance Director, Kevin Hebdon Finance Department Update As the City of Pasco’s new Finance Director, I am pleased to provide an update on the work underway within the Finance Department. Our team remains focused on improving efficiency, transparency, and customer service through strategic process improvements that strengthen internal operations and enhance service delivery for Pasco residents. I am committed to continuing the important progress and initiatives established under interim leadership, while working collaboratively with City departments and the community to ensure responsible stewardship of public resources and meet the City’s financial needs. Staffing and Organizational Capacity Lots of changes happening in the Finance Department with regards to staffing. Kevin Hebdon is the new Finance Director. We are hiring a Finance Manager and a Payroll Specialist by the end of January. Three new hires into existing positions, two of which being leadership, brings opportunities to evaluate roles and responsibilities within the department. Cross training among staff accountants and others is underway to increase depth of knowledge and prepare for succession and other transitions. State Accountability Audit The accountability audit is complete. An exit conference with the State Auditor's Office was held on December 15, 2025. During the audit, the areas examined included elements of activity associated with accounts payable, payroll, procurement, cash receipting, surplus land, compliance with Community Development Block Grant, contract compliance associated with the HAPO Center, compliance with the Open Public Meetings Act and the City's financial condition. Results were that City operations complied in all material respects with applicable state laws, regulations and our own policies, and provided adequate controls over the safeguarding of public resources. The audit report can be viewed at the SAO website,https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1038664&isFinding =false&sp=false. The next audit will occur with the conclusion of the 2025 financial report. Process Improvement Initiatives Several major Finance initiatives are advancing: • Paperless Accounts Payable: The authorization request has been submitted to the City Manager. The project is currently in the testing phase, with a full rollout anticipated in March 2026. • Bank Vendor Portal and Electronic Payments: Staff are evaluating an existing ERP- based solution prior to final selection. Setup and testing are expected to begin by the end of the first quarter of 2026. Utility Billing and Payment Process Improvements Since November 2025, the City of Pasco has implemented several major improvements to Utility Billing systems to modernize payment processing and improve customer service. A new receipting lockbox service is now in place to process mailed payments more efficiently. Customers mailing payments should note that the City’s remit address has changed to Vancouver, Washington, as payments are now routed directly to the lockbox for faster processing. The service is performing well overall, with a small number of payment posting Page 320 of 325 Page 6 of 8 issues identified and currently being resolved with the vendor. In mid-January 2026, the City will also implement an electronic lockbox that will allow electronic bill-pay payments to be deposited directly without paper checks, further improving accuracy and efficiency. The City’s new online Utility Billing Access Portal launched on November 24, 2025, allowing customers to view bills, make payments, and enroll in AutoPay. Adoption has been strong, growing to more than 9,400 customer portal accounts by January 8, 2026. The most common challenge for customers has been adding their account to the portal, which requires information to be entered exactly as it appears on their bill. This contributed to high call volumes and in- person visits in the weeks following launch. During this period, no utility service shutoffs were occurring. Utility Billing staff, with support from Finance and other City departments, responded to hundreds of customers calls and emails each day and conducted 405 scheduled phone and in-person appointments to assist customers one-on-one. Utility Billing staff have now caught up on a surge in call volume and are currently returning customer voicemail messages the same business day. Online appointment scheduling remains available through the end of January to continue supporting customers who need additional assistance. To support customers during the transition, the City has conducted extensive outreach, including direct emails to AutoPay customers, ongoing bill messages, social media posts, updated email auto-responses, and in-person assistance materials with QR codes linking to portal instructions and appointment scheduling. These efforts will continue as customers complete their portal and AutoPay setup. In addition, the City is finalizing a new utility bill design and transitioning to a new bill print and mail vendor. While awaiting vendor readiness, Utility Billing staff have been printing and mailing bills in-house, a significant effort during the holiday season and period of high customer demand. During this temporary in-house process, bills are mailed without return envelopes. Full bill printing and mailing services, including return envelopes, will resume when the new vendor goes live on January 15, 2026. Community & Economic Development Director, Haylie Matson Community & Economic Development Fee Study (Cost of Service Analysis) This year, staff will initiate and complete a comprehensive Community & Economic Development fee study to evaluate whether current land use, planning, and permitting fees align with the actual cost of providing services. The study will include data collection, workload and staffing analysis, comparative review of peer jurisdictions, development of cost-of-service fee models, and policy options for Council consideration. As discussed during development review fees discussion in 2024/2025, the city is not charging enough in land use application and permit fees to cover the staff time required to process and review applications. As a result, development review activities are being subsidized by the City’s General Fund, meaning residents and existing taxpayers are paying for a portion of private development review rather than development paying for development. Staff recommended a comprehensive rate study needed to legally increase these rates, Council directed staff to postpone the study to the following year and make modest increase to the development review fees. While reduced permit fees can sometimes serve as an incentive for development, Pasco is already experiencing a high level of development compared with previous decades. Adjusting fees to recover all, most, or a substantial portion of department costs could help relieve Page 321 of 325 Page 7 of 8 pressure on the General Fund and more fairly allocate the cost of development review to the development community. This study will allow staff and Council to fully understand the level of subsidization, especially in context of challenging budget preparation for Biennium 2027-2028. State law does not allow cities to recover 100% of all department activities; however, a very large percentage of eligible costs may be recovered through properly structured user fees. Once the study is complete, Council will be presented with scenarios showing different recovery levels and corresponding rate options and will be asked to make a policy decision regarding how much of CED’s costs should be covered by fees versus other funds. CED has been in transition over the past year, with major improvements now underway, including new systems, municipal code updates, the Comprehensive Plan update, near-full staffing levels, and implementation of standard operating procedures for every step in the permit process. With these improvements (many of which will continue over time) we believe the increased customer service, efficiency, and predictability in development review provided to the development community justifies aligning fees more closely with the true cost of service. Completion of the study and presentation of recommendations is expected within the calendar year. Public Works Director, Maria Serra Brief update on upcoming Capital Projects The following Capital projects are being launched into design phase. The design phase is the stage in which a capital project is planned in detail before construction begins. During this phase, staff work to secure and formalize project funding, including any available federal or state grant awards. The agency then requests qualifications from engineering firms, selects the most qualified firm, and executes contracts for professional services (Typically referred as PSA). Engineers prepare detailed plans, drawings, and cost estimates while ensuring the project complies with applicable safety standards and regulatory requirements. These technical documents are compiled into a bid package that is publicly advertised, allowing contractors to competitively bid for the construction work. The delivery of capital projects and the procurement processes used for these projects are highly regulated by state law. The purpose of the design phase is to ensure the project is fully defined and ready to move into construction. • Road 76 Overpass: Federal grant funded design, funds are obligated. Request For Qualifications (RFQ) is planned to be advertised by the end of January. A contract for design is likely to be presented to council in May 2026. • Clark Street Improvements: State grant funded. Funds to be obligated, then followed by RFQ advertisement. • Road 76 and Sandifur Parkway Intersection Improvements: Federal grant funded. Funds are obligated. Consultant is under contract. Preliminary design activities are commencing. • Road 40 East Extension: Locally funded. RFQ and consultant selection process completed. Scope and fee negotiation underway. Anticipated to have consultant under contract in February 2026. • Lewis Street Underpass Demolition: State funded. Funding contracting is underway. Consultant is coordinating with BNSF and beginning design work. Page 322 of 325 Page 8 of 8 • Cable Bridge Lighting: locally funded by various local agencies. Scope and fee are being negotiated with Consultant. • Shoreline Sewer Trunk Upsizing: state funded. Consultant under contract. Beginning pre-design activities. Potential Impacts of Bateman Island Causeway Removal to Pasco’s Water and Sewer Infrastructure The Bateman Island Causeway project is being carried out by the U.S. Army Corps of Engineers to remove the existing structure that connects Bateman Island to the mainland (Richland). The goal of the project is to restore more natural water movement, improve fish habitat, and support long-term river health. As part of the project, the rock structure is being removed in phases. When the causeway is taken out, a considerable amount of sediment that has built up over time is expected to be released and carried downstream by the river. During the State Environmental Policy Act (SEPA) comment period, the City expressed concerns about potential impacts from the Bateman Island Causeway removal on downstream infrastructure and sediment movement. For the City of Pasco, this includes the Butterfield Water Treatment Plant’s water intake and the City’s Wastewater Treatment Plant outfall pipe and diffusers. The SEPA comments submitted by the City during the permitting process were not fully addressed. As a result, in late 2024, Public Works staff gathered additional information to better evaluate potential risks. A bathymetric survey was completed in the areas of the river where City infrastructure is located. A bathymetry can be thought of as an underwater map that shows how deep the water is and how the bottom of a river is shaped. Bathymetric surveys help engineers understand changes to the riverbed over time, including erosion or buildup of sediment. This survey provides a “before-project” picture of the riverbed, which can be compared with future surveys to determine whether sediment from the project has altered river conditions impacting Pasco’s infrastructure. A diver’s inspection was also performed and documented. Water turbidity (water clarity) will continue to be monitored to identify any changes over time. These efforts are performed to protect the City’s investment in infrastructure and safeguard the service these utilities provide to our customers. Page 323 of 325 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 324 of 325 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 325 of 325