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HomeMy WebLinkAbout2026.01.20 Council Mtg Handout from Padvorac ConsultingTechnical Memorandum To: Mayor Charles Grimm, District 2 Mayor Pro-Tem David Milne, District 5 Councilmember Leo Perales, District 3 Councilmember Joe Cotta, District 4 Councilmember Mark Figueroa, District 1 Councilmember Calixto Hernandez, District 6 Councilmember Abel Campos, At Large Cc: Harold Steward, City Manager, City of Pasco Richa Sigdel, Deputy City Manager, City of Pasco Maria Serra, Public Works Director, City of Pasco From: Jon Padvorac, Development Consultant, Padvorac Consulting, LLC Date: January 20, 2026 Subject: Concerns Regarding the Proposed Utility Connection Fee Increases Background The City is considering substantial increases to water and sewer connection fees. I am concerned the proposal will have broad impacts on development costs and affordable housing, with far ranging implications. I work with property owners and developers in the area and provide these comments in that context. These comments have been coordinated with the Home Builders Association of the Tri-Cities. If passed in their current amount, these fees could have significant, adverse impacts on the City, current and future City residents, and the developers who work in Pasco. This memo describes several concerns with the proposal to help inform Council's upcoming deliberations. Responding to stakeholder concerns and providing a justification for these significant fee increases is both good business practice for the City to minimize risk, and is a part of the City's responsibility is to administer their fee programs in a fair and equitable manner. Typically utility rate increases of this magnitude would typically be well documented and supported by a detailed fee study report, which are typically between 100 and 300 pages in length. If voted in by council, the proposed fee increase (around 17,000% for the water utility) will have Page 11 of millions of dollars of impacts on every significant sized project in Pasco. A decision of this magnitude should be carefully contemplated and made with care. Recommended Council Action We request that Council critically evaluate the proposed Sewer and Water connection fees being proposed. Based on the lack of responsiveness to questions raised earlier in this process, I recommend that council: 1) Request that staff decouple monthly service fee increases from connection fee increases. Staff want to pass monthly service fee increases the near -term to assist in the pursuit of funding, and lumping these two fees together into a single ordinance is artificially creating a level of unnecessary urgency. This would give plenty of time to address stakeholder concerns about the legitimacy of the significant connection fee increase being proposed. 2) Request that staff review previously unaddressed and new stakeholder concerns and address them prior to bringing water and sewer connection fee increases back to council. Issue 1: Missing Fee Study Report and Transparency (Previously Raised, Partially Addressed) The agenda packet for the connection fee increase notably omits the full FCS Group fee study report which would provide the analysis and data behind staff's recommendations. Omitting a full report is uncharacteristic of Staff Reports associated with fee studies / increases. The absence of a full report obstructs transparency and informed decision -making. Council and stakeholders are being asked to accept sharply higher fees without seeing the detailed methodology, data, and assumptions used to justify them. Given the magnitude of the increase, a full report from FCS would not be a mere formality— it is vital for understanding how fees were calculated and whether they are equitable so their legality can be reviewed, and later justified if the fee increase were to be challenged in court. Much less significant fee increases in the past have been supported by a full report, this one should be as well. Transparency calls for making such studies available well in advance, so elected officials and the public can understand the basis for the proposed fee increase. We urge that a full fee study be released in draft status so it can be reviewed by stakeholders and input incorporated well before any action is brought to council. Currently, raw spreadsheets have been released, but these lack logical explanation and justification, and are not an adequate substitute for a fee study. 12of9 Issue 2: Including Decades -Old Infrastructure Costs (and Interest) in New Connection Fees (Previously Raised, Not Addressed) The proposed fees would charge new development for infrastructure investments dating back decades, rolling forward original costs plus compounded interest. In effect, new residents would be paying for utility facilities that have long since been built and paid off by existing users and have little to no remaining useful life, while also being charged through utility rate increases for the replacement infrastructure, and connection fees for the additional capacity added to the system. This raises serious concerns about fairness and potential legal issues. Washington law authorizes connection charges so new customers pay their "equitable share" of system costs and is clear that no charges shall exceed the proportionate share of such utility or system's capital costs which the City can demonstrate proportional to the impact of the new housing units (RCW 82.02.020, RCW 82.02.060). Not pro -rating the existing infrastructure to take into account that it is at the very end of its Total Paid by a new home buyer in 2026 based on Proposed Fees who then lived in their house for 18 years for combined water and sewer service: Connection fee for existing (to -be -replaced) infrastructure + capacity improvements = $10,731 + 30% builder expense mark-up = $13,950.30 PLUS Additional monthly service fee in excess of a typical 3% per year annual rate increase to cover the new facilities = $12,646 Facilities paid for: The original plants (for a few years of use out of their 80 year service life), 2. Capacity upgrades 3. The new plants. Double-dipping? Yes! Fair or legal? No. service life, charging for capacity improvements, AND charging for the new infrastructure as part of significantly elevated service fees and connection fee structure would be double or triple dipping. Q: So even though I would only use the old water plant for a few years until it is replaced in 2029, 1 would have to pay my full share of the original construction cost back in the 1940's, inflated with interest? A: Yes — that is what the City proposes. Q: Wait — not prorated? When I pay full cost for something, I expect to get some service life out of it. You are charging me for the full price of a brand-new facility for the old plant, then turning right around and charging me the full price of the new plant through service fees, AND the added capacity upgrades? This seems to be double dipping! A: Yes, the City's goal is to keep rates as low as possible for our existing ratepayers according to the staff report. Example scrapped, at which point you will need to buy a new car at i full MSRP. Sorry in advance! Figure 1: Having the connection fee fully burdened by the value of the soon -to -be -replaced facilities that are not pro -rated for their remaining service life is like buying a used car near the end of its useful life for full original MSRP plus 10 years of interest, then having to go out and buy a new car almost immediately. 4of9 Issue 3: Misalignment with Adopted Plans (Comprehensive Plan & Butterfield Facility Plan) (Previously Raised, Not Addressed) The annual expenditure basis used to justify the proposed connection fees is not consistent with the City's adopted Comprehensive Plans and facility plans. The Comprehensive Plan and the Butterfield Water Treatment Plant Facility Plan (including amendments) phase major capacity projects over a 11 -to-1 6-year horizon, in direct conflict with the surge of spending in 2029 proposed to be included in the updated water connection fee. Attachment C (Facility Plan excerpts) shows a phased replacement of the Butterfield water treatment plant over 11 to 16 years. Council should seek clarity on whether the fee'sDroject list truly matches the phasing in the Comprehensive Plan and the Butterfield WTP Facility Plan (Attachments C and D), consistent with a number of laws including RCW 36.70A.120. Q: Do fee structures have to align with the Comprehensive Plan? A: Yes — per a number of laws including RCW 36.70A.120. Q: Is Pasco's proposed fee consistent with the Comprehensive Plan? A: It does not appear to be. Q: What?! Couldn't the new fee just be appealed then, and the City would have to pay the cost of damages and legal fees it caused by this mistake? A: Likely. RCW 36.70A.120 Planning activities and capital budget decisions —Implementation in conformity with Comprehensive Plan. Each county and city that is required or chooses to plan under RCW 36.70A.040 shall perform its activities and make capital budget decisions in conformity with its Comprehensive Plan. Annual Capita! Expenditures (Escalated) stbo.00 X SS4000 4 aoo S10000 ° 75.59 Woo $4000 S28.2 520.00 Sx►.t4 S10.49 $t3.80 �; S18.93 4t7.23 S! s�0 S0.00 2025 2026 2027 2025 ;i 203? 2032 2033 243d Figure 2: Excerpt from Staff Report dated 101612025 showing the forecasted water utility fund expenditures, which is inconsistent with the Butterfield facility plans. 5of9 Issue 4: Unclear "Capacity -Enhancing" Improvements vs. Maintenance / Deficiencies (Previously Raised, Not Addressed) The justification for these fee increases rests on funding capacity -enhancing improvements (i.e. new infrastructure or upgrades that expand system capacity to serve growth). The classification of capital projects as being related to capacity generation or remedy of existing deficiencies is systemically inconsistent with the City's published comprehensive plans and Capital Improvement Plan, see Attachments C and D. By law and common sense, new developments should not pay to fix existing problems or worn- out facilities that current customers should have been funding through rates, be charged for new capacity projects, AND also be charged for the new replacement facilities through the variety of fee structures (connection and service fees). This would be double or triple dipping. Yet, this is what the City is currently proposing. Lacking a full FCS report or the supporting analysis behind the proposed fees, the City's proposed rate increases are unsupported and unjustified. Spreadsheets showingwhich projects are considered capacity related are inconsistent with City planning documents without justification or rationale. We urge the City to provide clear criteria and project -level justification for what it deems capacity -increasing. Otherwise, there is a risk of inadvertently making newcomers pay two or three times for the system they use: first through connection fees for the soon -to -be - replaced facilities and the capacity upgrades, and again later through utility rates for overdue system replacement projects. Issue 5: Housing Affordability Impacts (Previously Raised, Not Addressed) Pasco's own Housing Action and Implementation Plan (HAIP) study found that even under recent conditions, few local residents can afford newly built homes. Since that study, interest rates have climbed and construction costs remain high —meaning the situation has only worsened. For context, Pasco's median home price jumped roughly 60% from 2017 to 2021 (from —$238k to —$379k), far outpacing income growth. The HAIP (Attachment B) noted a significant gap between housing costs and local incomes, with only a small percentage of households able to purchase a median -priced new home. Imposing a major increase in utility hookup fees — potentially thousands of dollars extra per new house — directly adds to the price of new housing. This will price out even more families. The City has recognized the housing affordability crisis and taken steps like code changes to encourage more housing types. However, these efforts could be undermined if fee hikes add substantial costs to every new home. In practical terms, a steep fee increase gets passed to buyers through higher lot and home prices, or it kills marginal housing projects altogether. Either outcome is counter to Pasco's affordability goals. We ask that Council weigh this carefully: the HAIP's findings (Attachment B) call for lowering barriers to housing, and the proposed fees will considerably and unnecessarily raise barriers by charging two or three times for the system capacity used by future residents. 16of9 Issue 6: Long -Term Financial Risk to City (Utility Revenues) (Previously Raised, Not Addressed) Finally, we caution that dramatically higher connection fees may carry long-term financial risks for the City's utilities and infrastructure funds. If the fee hikes slow down the pace of new housing construction (a likely outcome of reduced affordability and developer pullback), the City will see lower housing absorption in growth areas. Slower growth means fewer new utility customers paying monthlywater/sewer bills, which in turn means reduced future utility rate revenue. This will The City should avoid being "penny- wise but pound-foolish" and raising fees so much that it has a significant impact on growth, as this would leave the City without the growth needed to recover financial stability. cause a much more significant impact on the utility funds than having a lower connection fee, as well over half the revenue needed for the next 20 years of CIP water and sewer projects will be coming from homes yet to be constructed. In Attachment A's utility fund graphs, it is shown that the majority of funding for the 2025-2045 CIP projects will be provided by connection and service fees paid by new homes. The City's current financial plan is HIGHLY sensitive to changes in Pasco's growth rate. If the area doesn't grow, Pasco won't have money for their projects. The majority of the revenue from new homes is actually from their service fees -the City should avoid being "penny-wise but pound-foolish" and raising fees so much that it has a significant impact on growth, as this would leave the City without the growth needed to recover financial stability. 17of9 Sewer Forecasted Revenue: Proposed Connection Fee + City Recommended Rate Increases $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 c $40,000,000 $35,000,000 $30,000,000 c c a $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 5- i Annual Add1 Sewer Connection Fees Collected (New Fee) I Annual Add'] Sewer Service Fees Collected From New Homes • Sewer Fees Collected from Existing Homes 2025-2045 CIP Funding from Homes Built Btwn 2025-2045 ti N M cr "1 10 Ih 00 01 O l!1 %0 f` 00 0) M M cN+1 M M M T M M M Oyy q tiq� N�rr Mpp eVe�' O b 0 0 0 0 0 0 0 40 p 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N ev N N N N N N N Figure 4: Graph showing revenue from proposed sewer service fees and connection charges through 2044, assuming the proposed connection fee increases (even though they are likely far too high) and the staff -proposed rate increases. Additional graphs can be reviewed in Attachment A. As can be seen from the above graph above, monthly service fees and connection fees from newly constructed homes will fund a significant amount of the CIP project budget for replacement of aging infrastructure between now and 2044, as long as the City doesn't chase away developers and potential homebuyers with fees in excess of what should be charged. Service charges on existing homes, even with the staff proposed increases, will not support much above the O&M expenses of the existing infrastructure. Issue 7: Capacity Increasing Improvements Allocated Over 20 years (Previously Raised, Not Addressed) Rather than charging for only the amount of capacity used by a new connection, it appears from the Staff Report that FCS has amortized the full cost of a capacity upgrade over a period of 20 years, possibly correlating with loan payoff timeframes. This means that if a capacity upgrade provided enough additional capacity for 40 years of growth, the full cost would be distributed to only the first 20 years' worth of new connections. This may lead to an unconstitutional taking — someone being made to pay more than their fair share. Were this to be the case, the City could be liable for damages and the legal fees associated with an appeal. Page 18of9 Requests In summary, while ensuring adequate funding for utility capacity is important, the current proposal raises serious questions of fairness, alignment with policy, and economic impact. We respectfully ask the City Council and management take stakeholder concerns into consideration and provide responses before moving forward. Conclusion Thank you for considering our concerns. I am available to answer any questions you may have - feel free to reach out if you want to engage in further dialog regarding the information I have provided. Sincerely, Jonathan Padvorac Attachments: - Attachment A: Utility Fund Graphs for Sewer and Water* - Attachment B: Excerpts from Housing Action and Implementation Plan (HAIP) - Attachment C: Facility Plan Excerpts (Capital Facilities & Phasing not consistent with proposed fees) -Attachment D: Project Descriptions from Pasco CIP (many proposed connection fee projects are actually existing deficiencies) -Attachment E: Draft Agenda Report Published 01/19/2026 with Comments -Attachment F: Resolution No. 4690 - Agenda Setting Policy passed 12/1 /2025 -Attachment G: 11/10/2025 City Council Workshop Agenda (full W/S connection fee excerpt) -Attachment H: 11/10/2025 City Council Workshop Agenda (select slides) - FCS max fee & max escalation (accredited inflation index) *The sewer utility graphs generated from publicly available information seemed fairly consistent with those prepared by FCS, but the water utility graphs were not. As the supporting analysis and documentation is not provided, there is no way to track down the source of this discrepancy. 19of9 ATTACHMENTA $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 v $35,000,000 a� $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Water Forecasted Revenue: Proposed Connection Fee + City Recommended Rate Increases ri N M � Ln lD 1,- w m O r-i N M d' Ln lD t- w m O r-i N M llzt Ln CD I- w m O r-i N can ri r-i ri r-1 r-i r 4 r-i r-1 rH N N N N N N N N N rq M M M f'+°i M m M M m m lc:l- d 't 1 d O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N rq N N fV N N $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 u� $35,000,000 2 <qn nnn nnn $2 7,000,000 $20,000,000 Water Forecasted Revenue: Current Connection Fee + City.Recommended Rate Increases ■ Annual Add'I Water Connection Fees Collected (Current Fee) Add'I Water Service Fees Collected From New Homes ■ Water Fees Collected from Existing Homes Water Revenue Requirement Source: Staff council packet O&M Expenses Source: Staff council packet 2025-2045 CIP Funding from Homes Built Btwn 2025-2045 2025-2045 CIP Funding from Existing Homes 2025-2045 $15,000,000 - $10,000,000 $5,000,000 �-+ M:t Ln i4o � W M O ri C14 M d' Ln �.o r- M M O r1 N M zt Ln �.O I-- W M O N M r-9 r- 4 r-I r-1 r-1 � r-I r-1 r-1 N N N N i 4 N C-1 N N N M M M M M M M M M M : t Ct d' vzl O O O O O O O O O O 0 O O O O O O O O O O O O O O O O O O O O O O O C14 r-� N N N iN C14 N N r t n1 �! N r-4 N s. V N N N cV cV cV N rs9 N N N rq N r-4 N tv N N $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 > $40,000,000 a� }' $35,000,000 4-1 D $30,000,000 < $25,000,000 $20,,000,000 $15,000,000 $10,000,000 $5,000,000 Sewer Forecasted Revenue: Proposed Connection Fee + City Recommended Rate Increases w Annual Add'1 Sewer Connection Fees Collected (New Fee) Annual Add'I Sewer Service Fees Collected From New Homes ■ Sewer Fees Collected from Existing Homes Sewer Revenue Requirement Source: Staff council packet i CV M Ct Ln to � W M O r-i N M d ul to r- W M O ri N M d' Ln ;.0 r- W M O r-4 N M d ri ri ri r-1 rl rl ri r-i ri N N N N N N N N N N M M M M M M M M M M Cf d 1 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N . N N N N N N N N N N N N N N Sewer Forecasted Revenue: Current Connection Fee + City Recommended Rate Increases $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 a, $35,000,000 a� $30,000,000 $25,000,000 O&M Q $20,000,000 $15,000,000 Sours $10,000,000 $5,000,000 $- ri N M r—I r—I ri O O O N N N Ict Mt.0 r- W M O r-+ N M ct 4n 1.0 r. W M O ri N Mltz- LO910 r- W M O N M d' ri ri r—i ri ri r H N N N N N N lV N N N M M M M M M M M M Mlzt d d -Z:I- O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 N N N N r14 N N N N N c V cV fV N N N N N N N N N M N N N N N fV N N ATTACHMENT B I HOUSING ACTT IMPLEMENTATION -UNA - .1k jK Aim NOVEMBER 2024 OAOneza & Associates ECONorthwest FC&,'0MICS • ! INANCE • PUNNING E NYU WAGNER HOUSING OPTION FOR Worker affordability Exhibit 50 shows the average wages by industry in Franklin County and the maximum rent and median home price that workers in each industry could afford. More than half of the industries in Franklin County have high enough wages that can afford the average rent of $1,272 in Pasco. However, only one industry, the information industry, has a high enough wage to afford the median home price of $386,000 in Pasco. Pasco's employment is concentrated in educational services and retail trade. Based on the average wages earned in Franklin County 2021, workers in these industries cannot afford the average rent or the median priced home in Pasco. A select number of industries can support to afford the median home priced home if they 1.5 times per household. These industries include construction, wholesale trade, information, finance and insurance, professional and technical services, and government. City of Pasco Housing Action Plan 43 Exhibit 52. Housing Needed by Income Level in Pasco by 2045 Source: OFM, CHAS 2015-2019, ECONorthwest Calculations Income Category 0-30% AMI Underproduction 800 Need 2,484 Total Need 3,284 Share 14% 30-50%AM1 590 2,905 3,495 15% 50-80%AM1 295 4,468 4,763 20% 80-100%AM1 11 2,123 2,134 9% 100-120% AMI 37 2,351 2,388 10% 120-140% AMI 0 1,474 1,474 6% 140%+ AMI 0 5,780 5,780 25% Total 1,733 21,585 23,318 100% Summary of dousing Needs in Pasco Who Lives in Pasco Today? ■ Pasco has a relatively young population. Pasco's population generally skews younger with a median age of 29.9. In comparison, Franklin County has a median age of 30.5 and Washington 37.9. Children (ages 0 to 17 years old) represent 33 percent of the population, while young adults ages 18 to 39 make up about 31 percent. ■ Senior adults (60 years and older) saw the fastest growth in this the past decade. Seniors age 60 and older saw almost a 90 percent increase between 2010 and 2021. Although Pasco does not have a large senior population, this population cohort has rapidly grown over the past decade. ■ The Hispanic community continues to be a growing population group in Pasco. In 2021, over half (56 percent) of Pasco's population identified as Hispanic. Growth trends indicate that Pasco will continue to grow rapidly, and Hispanics will continue to be a majority ethnic group. ■ Socio-economic gaps exist between Non -Hispanic White residents and Black and Hispanic residents. Between 2010 and 2019, distribution of income has been higher among White non -Hispanic compared to Hispanic, and Black or African American. Median income of Hispanic households was 76% of the Non -Hispanic White households Countywide Median renter incomes have grown but remain very low. Median renter incomes have grown in the past decade, however in 2021 median renter incomes were $38,588 compared to $86,676 forthe median owner income. What will Pasco's Future Population Look like? ■ Pasco's population is projected to grow by 86 percent by 2045. From 2020 to 2045, Pasco's population will increase from an estimated population of 77,108 in 2020 to 143,657 in 2045. This estimate assumes that Pasco will continue to make about 80 Exhibit 48. Housing Affordability in Franklin County by Industry and Wages, 2023 C,nitrrA• r)PM F('r)Nnrth%A/P-,t C'alrid;;tinns All Industries $49,736 $1,243 No $186,648 No No Ag., forestry, fishing & hunting $36,126 $903 No $135,573 No No Mining $60,000 $1,500 $225,169 No Yes Construction $57,717 $1,443 $216,601 No Manufacturing $53,653 $1,341 $201,351 No No Wholesale trade $66,555 $1,664 $249,767 No Retail trade $42,457 $1,061 No $159,331 No No Transportation & warehousing $53,656 $1,341 $201,359 No No Information $109,235 $2,731 Yes $409,939 Finance and Insurance $71,792 $1,795 Yes $269,423 No Real Estate & Rental & Leasing $51,268 $1,282 Yes $192,400 No No Professional & Technical Services $59,876 $1,497 Yes $224,703 No Yes Administrative & Waste Services $43,787 $1,095 No $164,326 No No Educational Services $42,118 $1,053 No $158,062 No No Health Care & Social Assistance $45,692 $1,142 No $171,472 No No Art, Entertainment, & Recreational $37,732 $943 No $141,601 No No Accommodation & Food Services $23,462 $587 No $88,048 No No Government $64,056 $1,601 Yes $240,390 No Yes Median Sale Price of New Homes = Around $430k N AI ATTACHMENT C 0 City of Pasco City of VSkO BUTTERFIELD WATER TREATMENT Washingmn PLANT FACILITIES PLAN FINAL I September 2022 CHAPTER 6 1 BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN I CITY OF PASCO Table 6.4 Capital Improvement Plan Summary 1 Electrical Building $11,295,000 $1,129,000 $5,083,000 $5,083,000 2 Misc. improvements and Compressor Replacement $371,000 $371,000 3 Raw Water Pump Station Improvements $6,022,000 - 4 Flocculation and Sedimentation Basin Improvements ------ $1,279,000 $1,279,000 — 5 Chemical Building $16,317,000 $1,632,000 6 Filters �— $17,780,000 7 UV Disinfection $8,368,000 8 Flocculation Basins $10,211,000 9 Residuals Improvements (Phase 1) $1,196,000 10 Finished Water Pump Station $17,262,000 - 11 Ozone (including generation) $22,461,000 12 Residuals Improvements (Phase 2) $2,503,000 - 13 Admin Building $12,364,000 14 Backwash Lift Station Redundancy Improvements $2,967,000 15 WTP Repairs $164,000 $164,000 CIP Total (2021 Dollars)(') $130,560,000 $4,575,000 $5,083,000 $5,083,000 $2,409,000 $3,613,000 ;4,895,000 $7,343,000 $2,447,000 $1,778,000 $7,122,000. $3,347,000 .y $7,112,000 $1,778,000 $3,347,000 $837,000 Y $837,000 $2,043,000 $4,084,000 $4,084,000 - - $239,000 $957,000 - — - - - $3,452,000 $6,905,000 $6,905,000 $4,493,000 $8,984,000 $8,984,000 _ 4r�1:� $751,000 $1,752,000 $1,236,000 $5,564,000 $5,564,000 $1,187,000 $1,780,000 i. Ooc nnn to not nnn to C3i nnn tin Aro Ann tin /.Co nnA to iin !Mn tin 000 nnn tin o4o Mn tz )A/ nnn tin Tar Ann tin 77n nnn tf. 7G1 nnA t7?4b nnn IY 1- (1) Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable. (2) For this plan, effort was made to sequence and phase projects to align annual expenditures with the City's rate studies and overall funding availability. Should alternative funding opportunities become available, some projects maybe able to be advanced earlier than the timing shown. FINAL I SEPTEMBER 2022 j 6-15 Butterfield Water Treatment Plant Facilities Plan CIP Update - Cyanotoxins FINAL / October 2023 Aquatic Plants and Ica; viia CIP UPDATE - AQUATIC PLANTS AND CYANOTOXINS OCTOBER 2023 / FINAL / CAROLLO Table 4 Capital Improvement Plan Summary 1 Electrical Building $12,537,000 $251,000 $2,507,000 $5,015,000 $4,764,000$- 2 Misc. Improvements and Compressor Replacement $412,000 $412,000 3 Raw Water Pump Station Improvements $6,684,000 $134,000 $668,000 $3,342,000 $2,540,000 5 Chemical Building $18,111,000 $181,000 $3,622,000 $7,788,000 $6,520,000$- 6 Filters $19,736,000 $- $- $395 000 $1,579,000 $9,868,000 $7,894,000$- 8 Flocculation Basins $11,334,000 $- $ $227,000 $907,000 $6,234,000 $3,967,000$- 9 Residuals Improvements (Phase 1) $1,328,000 $- $- $- $- $133,000 $1,195,000$- 10 Finished Water Pump Station $19,159,000 $- $ $ $- $ $1,916,000 $9,580,000 17,664,000$- 11 Ozone (including generation) $24,931,000 $249,000 $4,986,000 $9,972,000 $9,723,000$- 12 Residuals Improvements (Phase 2) `$2,774,000 $ $- $- $ $ $- $ $ $ $832,000 $1,942,000 13 Admin Building $13,723,000 $- $- $- $ $- $- $- $1,372,000 $6,175,000 $6,175,000 $- $- 14 Backwash Lift Station Redundancy Improvements $3,294,000 $- $ $ $ $ $- $ $- $1,318,000 $1,976,000 $ $- 15 WTP Repairs $182,000 $182,000$- 16 Intake Screen Replacement $1,358,000 $136,000 $1,222,000 CIP Total (2023 Dollars)(') $135,563,000 $1,545,000 13,005,000 $26,739,000 $26,033,000 $16,235,000 $14,972,000 $9,580,000 1.9,036,000 $7,493,000 $8,151,000 $832,000 $1,942,000 Notes: i I (1)` Costs are provided in May 2023 dollars. Project costs should be escalatedforuse during budgetary planning. At the time of the writing of this plan, a 4% annual escalation rate was deemed reasonable. Table 5 Capital Improvement Plan Summary Continued 2 Misc. Improvements and Compressor Replacement $412,000 $- $- 50% 50% 0% 0% 3 Raw Water Pump Station Improvements $6,684,000 $- $- 50% 50% 0% 0% 5 Chemical Building $18,111,000 $- $- 25% 25% 25% ! 25% 6 Filters $1,974,000 $17,762,000 $- 50% 50% 0% 0% 8 Flocculation Basins $1,134,000 $10,201,000 $- 0% 50% 50% 0% 9 Residuals Improvements (Phase 1) $- $1,328,000 $- 1000/0 0% 0°I° 0% 10 Finished Water Pump Station $- $19,160,000 $- 50% 50% 0% 0% 11 Ozone (including generation) $24,930,000 $- $ 0% 0% 100% 0% 12 Residuals Improvements (Phase 2) $- $- $2,774,000 100% 0% 0% 0% 13 Admin Building $- $1,372,000 $12,350,000 0% 100% 0% 0% 14 : Backwash Lift Station Redundancy Improvements $- $- $3,294,000 50% 50% 0% 0% 15 WTP Repairs u $182,000 $- $- 0% 100% 0% 0% 16 Intake Screen Replacement $1,358,000 $ $- 50% 0% '50% 0%° CIP Total (2023 Dollars)(') $67,322,000 $49,823,000 $18,418,000 $43,981,000 $51,250,000 $35,805,000 $4,528,000 Annual Cost (2023 Dollars)(') $16,831,000 $11,463,000 --- -- . - $993,000 $2,199,000 j $2,563,000 $1,790,000 $226,000 Notes: (1) Costs are provided in May 2023 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4% annual escalation rate was deemed reasonable. CITY OF PASCO BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN RUMMOPEM City of Pasco CITY OF PA�S�C�O � COMPREHENSIVE WATER SYSTEM PLAN murraysm�7�h� June 2018 Revised January 2019 Table 7-1 Supply CIP Projects Project ID Description Location Time Frame Cost AP-03' Butterfield Water Treatment Plant PLC and Control Upgrades Project #00039 Zone 1 2017-2018 $600,000 AP-04' Columbia Water Supply Project #11001 Zone 1 2017-2018 $8,705,000 AP-061 West Pasco Water Treatment Plant Backwash Ponds Project (City Project #16008 West Pasco WTP 2017-2020 $2,226,000 S-005' Riverview Heights PS Backup Power Riverview PS 2018 $380,000 S-004 ASR Feasibility Study System Wide 2019 $75,000 AP-05 Butterfield Water Treatment Plant Chlorine Safety Improvements (City Project #17004 Zone 1 2019-2020 $325,000 S-003 Butterfield WTP Facility Plan Butterfield WTP 2020 $300,000 S-0011 West Pasco WTP Expansion — Phase 1 West Pasco WTP 2024-2027 $1,350,000 S-0021 West Pasco WTP Expansion — Phase 2 West Pasco WTP 2035 $1,350,000 S-002-PS' West Pasco WTP Expansion — Phase 2 — Pump Station Upgrade West Pasco WTP 2035 $910,000 Total Supply CIP Cost $16,221,000 Note: Project costs were provided by the City and do not include all the assumptions defined in Appendix 7-A. 7.4.2 Storage As part of the storage capacity evaluation, pressure zones where the existing usable storage does not meet the equalization, fire suppression or emergency criteria were identified. Table 7-2 shows the recommended storage improvements, implementation timeframe, and associated cost opinions. Land acquisition costs are not included. Figure 7-1 presents the approximate location of storage improvements. Cost estimates for the planned Zone 2 reservoir were provided by the City and are presented in Table 7-2. Appendix 7-C expands on the description of the projects listed in Table 7-2. Table 7-2 Storage CIP Projects Project Description Location Time Volume HGL Cost ID Frame MG (FT) New storage reservoir — 2020- T-001' ground elevation storage Zone 2 2023 5.75 585 $11,700,000 (City Project #00041 T-002' New storage reservoir — Zone 3 2035 3.5 660 $7,469,000 Elevated tank Total Storage CIP Cost $19,169,000 Note: Cost based on elevated stora Zone 2 and Zone 3 tanks are pre-existing deficiencies, not growth related. 15-1710.1084 Page 7-4 City of Pasco June 2018 Capital Improvement Program Comprehensive Water System Plan ATTACHMENT D Alton Street Water Main Extension - Wehe Ave to Alley East of Owen Ave Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Project Number 21246 Description This project will involve constructing approximately 1,000 linear feet of 8" ductile iron water main along Alton St, stretching from Wehe Ave to the alley east of Owen Ave. As part of the project, one fire hydrant will be installed at the intersection of Wehe Ave and Alton St, while the existing fire hydrant on Alton between Owen St and Beech St will be relocated and connected to this new main. Additionally, the project will replace the existing undersized main (approximately 500 feet) in the alley directly west of Owen St with an 8" ductile iron pipe extending between Alton St and Helena St. Images Details Type of Project New Construction Reason for Project Growth - Enhance programs and services to meet growth needs Project Benefit Location w � •rNareiwki y •+• This extension will enhance the water system by creating a loop that eliminates dead-end pipes in the area. By replacing the undersized mains with properly sized ductile iron pipes, the project will significantly improve water flow and pressure, which is critical for effective fire protection and overall system reliability. Improved water infrastructure aligns with the council's workplan to enhance community safety and provide high -quality public services. City of Pasco ) Capital Improvement Plan Page 400 Project Assumptions The costs for this project have been updated to reflect the current price increases for ductile iron materials. The project is included in the 2021 rate study, ensuring that funding and financial planning align with updated project costs and timelines. Capital Cost Total Budget (all years) Project Total $490K $490K Capital Cost by Year 2029 ■ $66,150.00 2030 $423,850.00 $0 $120K $240K $360K Construction/Maintenance 49 Design Capital Cost for Budgeted Years Construction/Maintenance (87%)$423,850.O( Design (14%) $66,150.00 TOTAL $490,000.00 Capital Cost FY2029 FY2030 Total Design $66,150 $0 $66,150 Construction/Maintenance $0 $423,850 $423,850 Total $66,150 $423,850 $490,000 I,JJ City of Pasco i Capital Improvement Plan Page 401 Funding Sources Total Budget (all years) $490K Funding Sources by Year Project Total $490 K 0-.0 $66,150.00 :Z030 $423,850.00 $0 $120K $240K $360K Bond - Revenue - Unsecured Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$490,00, TOTAL $490,000.00 Funding Sources FY2029 FY2030 Total Bond - Revenue - Unsecured $66,150 $423,850 $490,000 Total $66,150 $423,850 $490,000 'J City of Pasco I Capital Improvement Plan Page 402 BWTP Project 1 - Electrical Building Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2025 Est. Completion Date 12/31/2028 Department Water Type Capital Improvement Description This project provides the capital improvements related to upgrades needed to maintain operability at the Butterfield Water Treatment Plant (WTP). Upgrades under this project scope include electrical power utility feed modifications, a standalone electrical building housing new motor control centers (MCCs), and additional standby power generator and storage. Images III( - Existing MCC equipment at Butterfield WTP Details Type of Project Other Reason for Project Capital -Critical needs driven by GMA or aging infrastructure Project Benefit Location This project provides for upgrades to an aging plant, which is key to the reliable supply of potable water to the customers. Ensuring that the electrical systems are up-to-date and reliable supports the overall efficiency and resilience of the water treatment process. This aligns with the Council Workplan's goals of promoting a high quality of life, community safety, and operational efficiency. Project Assumptions City of Pasco I Capital Improvement Plan Page 403 Road 49 'dater Main Replacement - Replace tin with Sin South of Sylvester Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2025 Est. Completion Date 12/31/2025 Department Water Type Capital Improvement Description This project will replace the aging water main that runs along Road 49, south of Sylvester Street. The current 2-inch diameter main will be upgraded to an 8-inch diameter main to enhance the water supply infrastructure. Images Details Type of Project Replacement Reason for Project Capital -Critical needs driven by GMA or aging infrastructure Location Project Benefit Upgrading the water main will improve fire flow availability to the hydrants in the area, significantly enhancing fire safety. Additionally, it will address and resolve existing water quality issues, ensuring a reliable and safe water supply for residents and businesses. Project Assumptions 11 City of Pasco i Capital Improvement Plan Page 445 The existing water main is considered a candidate for replacement due to its age and the condition of the infrastructure. This assumption is based on the assessment of the current system's performance and reliability. Capital Cost FY2025 Budget $1,000,000 Capital Cost by Year 202s Total Budget (all years) $1 M $0 $250K $500K $750K $1M Construction/Maintenance 0 Design Project Total $1 M $1,000,000.00 Capital Cost for Budgeted Years Construction/Maintenance (80%)$800,000.0 Design (20%) $200,000.00 TOTAL $1,000,000.00 Capital•Breakdown Capital Cost FY2025 Total Design $200,000 $200,000 Construction/Maintenance $800,000 $800,000 Total $1,000,000 $1,000,000 .i— ,aiCity of Pasco i Capital Improvement Plan Page 446 Funding Sources FY2025 Budget $1,000,000 Funding Sources by Year 2025 Total Budget (all years) Project Total $1M $1M $0 $250K $500K $750K $1M Bond - Revenue - Unsecured Funding Sources Bond - Revenue - Unsecured Total Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$1,000,0( TOTAL $1,000,000.00 FY2O25 $1,000,000 $1,000,000 Total $1,000,000 $1,000,000 '11 City of Pasco I Capital Improvement Plan Page 447 Rd 103 Water Main Extension - Maple Dr to Willow Way Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Project Number 21 247 Description This project will construct approximately 825 linear feet of 8" ductile iron water main along Rd 103, connecting the water mains on Maple Dr and Willow Way. The construction aims to improve the overall water distribution system by creating a loop, which enhances the flow characteristics and reliability of the water service in the area. Images Details Type of Project New Construction Reason for Project Capital -Critical needs driven byGMAor aging infrastructure Project Benefit Location This project will improve the reliability of service and flow characteristics by increasing the looping of the system. Enhanced looping ensures a more consistent water supply, reduces the potential for water stagnation, and improves pressure management throughout the distribution network. This contributes to better service for residents and businesses in the area. Project Assumptions City of Pasco i Capital Improvement Plan Page 427 This project is subject to funding availability and is included in the 2021 rate study. The construction of the water main extension is contingent on securing the necessary financial resources to proceed. Capital Cost Total Budget (all years) Project Total $255.15K $255.15K Capital Cost by Year 2029 $51,450.00 2030 $203,700.00 $0 $50K $100K $150K $200K Construction/Maintenance Design Capital Cost for Budgeted Years ConstructionjMaintenance (80%)$203,700.0( Design (20%) $51,450.00 TOTAL $255,150.00 Capital Cost FY2029 FY2030 Total Design $51,450 $0 $51,450 Construction/Maintenance $0 $203,700 $203,700 Total $51,450 $203,700 $255,150 �W �11 City of Pasco I Capital Improvement Plan Page 428 Funding Sources Total Budget (all years) $255.15 K Funding Sources by Year Project Total $255.15K 2029 $51,450.00 2030 $203,700.00 $0 $50K $100K $150K $200K Bond -Revenue -unsecured Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$255,150. TOTAL $255,150.00 Funding Sources FY2029 FY2030 Total Bond - Revenue - Unsecured $51,450 $203,700 $255,150 Total $51,450 $203,700 $255,150 City of Pasco i Capital Improvement Plan Page 429 Riverhaven Street Water Main Extension - Rd 36 to Rd 40 Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Project Number 23 454 Description This project will construct approximately 1,400 linear feet of 8" ductile iron water main along Riverhaven St from Rd 36 to Rd 40. The dead-end water mains at the southern end of these streets will be connected to the new water main, creating a continuous loop that enhances the system's reliability and performance. Images Details Location Type of Project New Construction Reason for Project Growth - Enhance programs and services to meet growth needs Project Benefit Connecting the dead-end water mains will significantly improve the flow characteristics of the water system, ensuring increased water pressure and flow rates that are essential for effective fire protection. By looping the system with properly sized mains, this project will enhance water quality for residents in the area by reducing the frequency of flushing required to maintain clean water in dead-end lines. Improved system efficiency and reliability align with the council's workplan to enhance community safety and quality of life. Project Assumptions City of Pasco I Capital Improvement Plan Page 442 The implementation of this project is contingent upon the availability of funding. It is included in the 2021 rate study, with bonds to be issued in accordance with the rate study assumptions. Capital Cost Total Budget (all years) $440 K Capital Cost by Year 2029 2030 Project Total $ 440 K $0 $100K $200K $300K Construction/Maintenance 0 Design $90,300.00 $349,700.00 Capital Cost for Budgeted Years Construction%Maintenance (79%)$349,700.0C Design (21%) $90,300.00 TOTAL $440,000.00 Capital Cost FY2029 FY2030 Total Design $90,300 $0 $90,300 Construction/Maintenance $0 $349,700 $349,700 Total $90,300 $349,700 $"0,000 .�.4r 10 City of Pasco I Capital Improvement Plan Page 443 Funding Sources Total Budget (all years) Project Total $440K $440K Funding Sources by Year 2029 $90,300.00 2030 $349,700.00 $0 $100K $200K $300K. Bond - Revenue - Unsecured Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$440,00 TOTAL $440,000.00 Funding Sources FY2029 FY2030 Total Bond - Revenue - Unsecured $90,300 $349,700 $440,000 Total $90,300 $349,700 $4401000 City of Pasco I Capital Improvement Plan Rd 60 Water Main Replacement - Court St to W Pearl St Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Description This project will replace approximately 3,000 linear feet of deteriorating 6" thin wall PVC water line with a more robust system consisting of approximately 1,400 linear feet of 12" ductile iron pipe along Road 60 and 1,600 linear feet of 12" ductile iron pipe along W Pearl St, W Agate St, and 62nd PI. The installation will also include three new fire hydrants to enhance fire safety in the area.The project aims to ensure the safety and reliability of the city's infrastructure, promoting a high quality of life and community safety. Images Details Type of Project Reason for Project Replacement Capital -Critical needs driven by GMA or aging infrastructure Location w F City of Pasco I Capital Improvement Plan Page 430 Project Benefit Upgrading the existing infrastructure will significantly reduce the risk of future leaks and associated property damage claims. Thin wall PVC pipes are prone to breaks, leading to ground washout and settlement, which can cause further leaks and strain on the remaining pipes. The new ductile iron pipes will provide more reliable water flow, improving the efficiency of the water distribution system and ensuring optimal water pressure to the fire hydrants, thus enhancing public safety. Project Assumptions The successful implementation of this project depends on the availability of funding. It is included in the 2021 rate study, with bonds issued in accordance with rate study assumptions. Capital Cost Total Budget (all years) $1.365M Capital Cost by Year 2029 Project Total $1.365M $315,000.00 2030 $1,050,000.00 $0 $300K $600K $900K Construction/Maintenance 0 Design Capital Cost for Budgeted Years Construction/Maintenance (71%)$1,050,000X Design (23%) $315,000.00 TOTAL $1,365,000.00 Capital Cost FY2029 FY2030 Total Design $315,000 $0 $315,000 Construction/Maintenance $0 $1,050,000 $1,050,000 Total $315,000 $1,050,000 $1,365,000 141) City of Pasco ( Capital Improvement Plan Page 431 Funding Sources Total Budget (all years) $1.365M Funding Sources by Year Project Total $1.365M ,1029 $315,000.00 2030 $1,050,000.00 $0 $300K $600K $900K Bond - Revenue - Unsecured Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$1,365,0( TOTAL $1,365,000.00 Funding Sources FY2029 FY2030 Total Bond - Revenue - Unsecured $315,000 $1,050,000 $1,365,000 Total $315,000 $1,050,000 $1,365,000 City of Pasco ) Capital Improvement Plan Page 432 Rd 76 Water Main Replacement - Wernett Rd to W Court St Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Project Number 23452 Description This project aims to replace approximately 1,700 linear feet of outdated 4" and 6" thin wall irrigation class PVC water lines with more durable 8" and 12" ductile iron pipes. Additionally, new fire hydrants will be installed to enhance fire safety. The existing infrastructure is insufficient to support the growing residential areas along Road 76, which are experiencing significant development. Images Details Type of Project Replacement Reason for Project Capital -Critical needs driven by GMA or aging infrastructure Project Benefit Location Replacing the PVC pipes with robust ductile iron pipes will create a reliable loop system, connecting the 12" main from Argent Rd to the main in Court St. This improvement will ensure that new properties can access city water, enhance the fire department's ability to maintain a steady water supply for firefighting, and eliminate a critical bottleneck in the water distribution system. This project aligns with the council's workplan to ensure the safety and resilience of city services, promoting a high quality of life and community safety. Project Assumptions �i. ')11 City of Pasco i Capital Improvement Plan Page 433 Rd 76 Water Main Replacement - Wernett Rd to W Court St Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Project Number 23 452 Description This project aims to replace approximately 1,700 linear feet of outdated 4' and 6" thin wall irrigation class PVC water lines with more durable 8" and 12" ductile iron pipes. Additionally, new fire hydrants will be installed to enhance fire safety. The existing infrastructure is insufficient to support the growing residential areas along Road 76, which are experiencing significant development. Images Details Type of Project Replacement Reason for Project Capital -Critical needs driven by GMA or aging infrastructure Project Benefit .1W Location Replacing the PVC pipes with robust ductile iron pipes will create a reliable loop system, connecting the 12" main from Argent Rd to the main in Court St. This improvement will ensure that new properties can access city water, enhance the fire department's ability to maintain a steady water supply for firefighting, and eliminate a critical bottleneck in the water distribution system. This project aligns with the council's workplan to ensure the safety and resilience of city services, promoting a high quality of life and community safety. Project Assumptions 0. 11% City of Pasco i Capital Improvement Plan Page 433 The project's schedule is dependent on the availability of funding. It is included in the 2021 rate study, and bonds will be issued in accordance with rate study assumptions to cover the costs. The need for reliable infrastructure to support growing areas and emergency services is critical to the project's timely completion. Capital Cost Total Budget (all years) Project Total $960 K $960 K Capital Cost by Year 2029 $193,500.00 2030 $766,500.00 $0 $200K $400K $600K construction/Maintenance 0 Design Capital Cost for Budgeted Years Construction/Maintenance (80%)$766,500.0( Design (20%) $193,500.00 TOTAL $960,000.00 Capital Cost FY2029 FY2030 Total Design $193,500 $0 $193,500 Construction/Maintenance $0 $766,500 $766,500 Total $193,500 $766,500 $960,000 'JJ City of Pasco I Capital Improvement Plan Page 434 Funding Sources Total Budget (all years) $960 K Funding Sources by Year 2C;2 2030 Project Total $960 K $O $200K $400K $600K 41 Bond - Revenue - Unsecured $193,500.00 $766,500,00 Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$960,004 TOTAL $960,000.00 Funding Sources FY2029 FY2030 Total Bond - Revenue - Unsecured $193,500 $766,500 $960,000 Total $193,500 $766,500 $960,000 rL++ 11 City of Pasco i Capital Improvement Plan Page 435 Seismic Improvements - Various Facilities Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2027 Est. Completion Date 12/31/2029 Department Water Type Capital Improvement Description This project will perform seismic assessment and necessary seismic retrofits of the water treatment facilities, pump stations, storage tanks, and other assets as recommended in the 2020 Risk and Resiliency Assessment. The goal is to enhance the structural integrity and resilience of these critical infrastructures against seismic events. Images Details Type of Project Refurbishment Reason for Project Capital -Critical needs driven by GMA or aging infrastructure Location Paco Project Benefit This project provides for the resiliency of infrastructure to improve reliability of service and preparedness to maintain service for users. By reinforcing these facilities, the project ensures that essential services remain operational during and after seismic events, thereby protecting public health and safety. Project Assumptions ,I City of Pasco i Capital Improvement Plan Page 448 This project was recommended as part of the Risk and Resiliency Assessment conducted in 2020, as required by Federal Regulations. A study will be conducted to specifically identify needed improvements. This project is included in the 2021 rate study. Capital Cost Total Budget (all years) Project Total $3.5 M $3.5 M Capital Cost by Year 2027 �■ $800,000.00 2028 $1,500,000.00 2029 .� $1,200,000.00 $0 $400K $800K $1.2M 19 Construction/Maintenance 0 Design Capital Cost for Budgeted Years • Construction/Maintenance (77%)$2,700,000. • Design (23%) $800,000.00 TOTAL $3,500,000.00 Capital Cost FY2027 FY2028 FY2029 Total Design $800,000 $0 $0 $800,000 Construction/Maintenance $0 $1,500,000 $1,200,000 $2,700,000 Total $800,000 $115001000 $1,200,000 $3,500,000 J..i., lq City of Pasco ( Capital Improvement Plan Page 449 Funding Sources Total Budget (all years) Project Total $3.5 M $3.5 M Funding Sources by Year 2027 2028 2029 $0 $400K $800K $1.2M Bond - Revenue - Unsecured $800,000.00 $1,500,000.00 $1,200,000.00 Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$3,500,0 TOTAL $3,500,000.00 Funding Sources FY2027 FY2028 FY2029 Total Bond - Revenue - Unsecured $800,000 $1,500,000 $1,200,000 $3,500,000 Total $800,000 $1,500,000 $1,200,000 $3,500,000 �r City of Pasco i Capital Improvement Plan Page 450 Star Lane Water Main Replacement - Rd 100 to Rd 97 Overview Request Owner Engineering CIP Department, PW Engineering CIP Dept Est. Start Date 01/01/2029 Est. Completion Date 12/31/2030 Department Water Type Capital Improvement Project Number 19 046 Description This project will upsize an existing 2" water line with an 8" water main and install fire hydrant(s) to service this area. The replacement will cover the stretch of Star Lane between Road 100 and Road 97. The existing 2" water line has been identified as insufficient to meet the current and future water demand of the area, particularly for fire protection services. The new 8" water main will ensure adequate water flow and pressure, addressing both domestic water needs and emergency fire suppression requirements. Images Details Location Type of Project Replacement Reason for Project Capital -Critical needs driven by GMA or aging infrastructure awn Kmro Project Benefit This will increase the reliability of service and fire flow. By improving the flow characteristics of the system in the area, replacing the existing main with properly sized water mains provides increased flows and pressures that help meet fire protection needs. This aligns with the Council Workplan's focus on community safety and promoting a high quality of life. Project Assumptions �k. 11 City of Pasco i Capital Improvement Plan Page 451 The schedule is subject tofu nding availability. The project requires the acquisition of a permanent easement. This project is included in the 2021 rate study. Capital Cost Total Budget (all years) Project Total $325 K $325 K Capital Cost by Year 2029 $69,500.00 2030 ■ $255,500.00 $0 $80K $160K $240K Construction/Maintenance 0 Design Capital Cost for Budgeted Years Construction/Maintenance(79%)$255,500.00 +♦ Design (21%) $69,500.00 TOTAL $325,000.00 Capital Cost FY2029 FY2030 Total Design $69,500 $0 $69,500 Construction/Maintenance $0 $255,500 $255,500 Total $69,500 $255,500 $325,000 ;ICity of Pasco i Capital Improvement Plan Page 452 Funding Sources Total Budget (all years) Project Total $325 K $325 K Funding Sources by Year 2029 2030 $0 $80K $160K $240K Bond - Revenue - Unsecured $69,500.00 $255,500.00 Funding Sources for Budgeted Years Bond - Revenue - Unsecured (100%)$325,00C TOTAL $325,000.00 Funding Sources Breakdown Funding Sources FY2029 FY2030 Total i Bond - Revenue - Unsecured $69500 $255,500 $325,000 Total $69,500 $255,500 $325,000 ,1i City of Pasco i Capital Improvement Plan Page 453 Reservoir Storage Tank - Zone 2 Overview Request Owner Est. Start Date Est. Completion Date Department Type Project Number Engineering CIP Department, PW Engineering CIP Dept 01/01/2026 12/31/2029 Water Capital Improvement 23 453 Description This project will design and construct a new 3 to 4 million gallon (MG) water storage tank in Pressure Zone 2. The new tank aims to enhance the water storage capacity of the area, ensuring sufficient water supply to meet the demands of the community. Images Details Type of Project New Construction Reason for Project Growth - Enhance programs and services to meet growth needs Location FA Project Benefit This project will accommodate growth and projected water demand increase, in addition to addressing known storage deficiencies. By increasing the storage capacity, the project ensures a reliable and consistent water supply, supports future development, and improves the overall resilience of the water distribution system. Project Assumptions A potable water system storage evaluation performed in 2021 determined that, based on projected demands, a 3.5 MG tank reservoir would be sufficient to meet current demands. However, depending on future development beyond the current projections, the size of the tank may need to be reevaluated. This project is included in the 2021 rate study, and bond City of Pasco i Capital Improvement Plan Page 436 issuance will be in accordance with rate study assumptions. Capital Cost Total Budget (all years) Project Total $22 M $22 M Capital Cost by Year 2026 2027 2028 2029 $0 $2.SM $5M $7.SM $10M 40 Construction/Maintenance Design $1,000,000.00 $1,000,000.00 $10,000,000.00 $10,000,000.00 Capital Cost for Budgeted Years • Construction/Maintenance (82%)$18,000,00( • Design (18%) $4,000,000.00 TOTAL $22,000,000.00 Capital Cost FY2O26 FY2O27 FY2O28 FY2O29 Total Design $1,000,000 $1,000,000 $2,000,000 $0 $4,000,000 Construction/Maintenance $0 $0 $8,000,000 $10,000,000 $18,000,000 Total $1,000,000 $1,000,000 $10,000,000 $10,000,000 $22,000,000 149 City of Pasco I Capital Improvement Plan Page 437 Funding Sources Total Budget (all years) Project Total $22 M $22 M Funding Sources by Year 2026 $1,000,000.00 2027 $1,000,000.00 2028 $10,000,000.00 2029 $10,000,000.00 $0 $2.5M $5M $7.5M $10M Bond - Revenue- Unsecured 0 Loan -Unsecured Funding Sources for Budgeted Years Bond - Revenue - Unsecured (90/o)$2,000,00C Loan -Unsecured (91%) $20,000,000.00 TOTAL $22,000,000.00 Funding Sources FY2026 FY2027 FY2028 FY2029 Total Bond - Revenue - Unsecured $1,000,000 $1,000,000 $0 $0 $2,000,000 Loan - Unsecured $0 $0 $10,000,000 $10,000,000 $20,000,000 Total $1,000,000 $1,000,000 $10,000,000 $10,000,000 $22,000,000 \I' City of Pasco I Capital Improvement Plan Page 438 ATTACHMENT 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 (Under Legal Review) 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 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. 111. FISCAL IMPACT: Proposed rate increase Fex r s d in %) as follows: CC (Single 2026 2027 2028 2029 Family Home Water $6,148 20.75% �20.75% 20.75% 9.5% Sewer $4,354 8% _� tv, 8% 8% Proposed connection chATWCCrWater - Effective Date: Rates: March 1, 2026 Connection Fees: anuary 1, 2027 8, Sewer - $4,583 Impacts (other than fiscal): The updated analysis indicates that the City's water and sewer Do new connection start in 2026 or 2027? Unclear. Start in 2026 with 20.75% escalation? ities face 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: Rate studies assess the annual revenue necessary to fund all financial 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 City's comprehensive Water and Sewer Rate Study, including recommended adjustments to monthly rates and connection charges. The rate study fulfills the standard requirement for enterprise -funded utilities to 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. • 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 Linkedln • 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 Water and Sewer rate adjustments: 2026 Utility Rate Adjustments I Pasco, WA - Official Website V. DISCUSSION: Recommendation: Approve the proposed Water and S March 1, 2026 and connection fees Important later, not consistently implemented in proposed ordinance s( utility rate adjustments to be effective e effective as of January 1, 2027. In addition to updated connection fees that will provide sufficient infrastructure for future growth, the proposed Vnethodology 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 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 f our residents. City has discount program for low income senior sidents that provides discounted water, sewer and irrigation services. ouncil expanded this service to include irrigation in 2025. ht s://www. asco-wa. ov/276/Low-Income-Senior-Discounts 3. Hi torically, utility connection fees have been low and unpredictable, whi h has not adequately reflected the cost of infrastructure capacity or gro h impacts. The revised methodology results in significant increases to nnection fees, which presents affordability and perception chall ges for new customers and development. Implementation requir s amendments to City code, as reflected in the proposed ordinar\ces included in the packet. Next Steps: Ordinance prov ed for Council consideration to formally adopt the updated monthly utility r tes and connection charges, with rates being effective on March 1, 2026 a d connection fees being effective on January 1, 2027. Upon adoption, staff ll proceed with implementation of the ne rates and connection fee me odology in accordance with the approved ordi ances and updated code provi ions. Alternatives: ' °\ 1. Council can rej ct the ordinance as proposed and direct staff to revise the recommend tion. This might result in losing $14.7 million i funding from DOH. 2. Council can revi the motion and take separate actions on ra es and connection fee; to ng action on one and delaying the other. D ays in adoption of rates right result in losing the aforementioned funding It seems that the intent was to have the proposed water/sewer connection fees effective in 2027. Staff bundling connection and service fees into a combined ordinance, knowing that service fees have a near -term deadline created an unnecessary timing crisis. These tactics should not interfere with due process, staff knew about stakeholder concerns and have not addressed them yet. This does not appear to be consistent throughout the document. 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 [2626 Ordinance — Amending PMC for Water & Sewer Connection Fees - 1 Inside city: Consumption - per 100 cubic feet: Residential/corn $0.88 $0.94 $1.00 $1.07 $1.12 $1.18 13.20.050 mercial Bulk -per 1,000 $1.45 $1.54 $1.64 $1.75 $1.84 $1.93 13.20.080 gallons Residential - single- family base fees: 3/4 and 5/8 $20.55 $21.89 $23.31 $24.83 $26.07 $27.37 13.20.020 inch - per month 1 inch - per $30.81 $32.82 $34.95 $37.22 $39.08 $41.03 13.20.020 month Senior reduced/low income: 3/4 and 5/8 $6.83 $7.27 $7.74 $8.24 $8.65 $9.08 3.65.150 inch - per month 1 inch - per $10.30 $10.97 $11.68 $12.44 $13.06 $13.71 3.65.150 month Commercial - base fees: 3/4 inch - per $28.97 $30.85 $32.86 $35.00 $36.75 $38.59 13.20.030 month 1 inch - per $42.37 $45.12 $48.05 $51.17 $53.73 $56.42 13.20.030 month Ordinance - Amending PMC for Water & Sewer Connection Fees - 2 1-1/2 inch -per $81.60 $86.90 $92.55 $98.57 $103.50 $108.68 13.20.030 month 2 inch - per $130.86 $139.37 $148.43 $158.08 $165.98 $174.28 13.20.030 month 3 inch - per $178.74 $190.36 $202.73 $215.91 $226.71 $238.05 13.20.030 month 4 inch - per $257.54 $274.28 $292.11 $311.10 $326.66 $342.99 J 3.20.030 month 6 inch - per $402.01 $428.14 $455.97 $485.61 $509.89 $535.38 13.20.030 month 8 inch - per $557.10 $593.31 $631.88 $672.95 $706.60 $741.93 13.20.030 month 10 inch - per $967.36 $1,015.73 $1,066.52 13.20.030 month Fee/Charge Reference Outside City; effective l l / 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 Ordinance - Amending PMC for Water & Sewer Connection Fees - 3 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, 13.20.080 as determined by the Director of Finance Nonrefundable removal fee $30.00 13.20.080 Monthly base rental fee $62.00 Late payment and not returning $50.00 meter after 48 hrs. (per day) Hydrant rental — outside corporate limits, $20.00 13.20.070 per year Charges for water meters and services: Meter and service costs equal to average 13.45.010 cost to City based on prior year Move meter for owner Cost + 15% 13.30.060 Change meter size Cost + 15% 13.30.050 Water system capital expansion/replacement charges Ordinance — Amending PMC for Water & Sewer Connection Fees - 4 Not yet updated? Unclear if this should be struck through Inside City limits: 3/4-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 Outside City limits: 3/4 — 10-inch meter Front footage (per foot): Residential: In and out City limits Commercial: In and out City limits Square Footage (per sq. ft.): Residential: In and out City limits Commercial: $360.00 13.25.010 $601.00 13.25.010 $1,198 13.25.010 $1,918 13.25.010 $3,599 13.25.010 $5,999 13.25.010 $11,995 13.25.010 $19,192 13.25.010 $27,591 13.25.010 90% surcharge 13.25.020 $20.00 13.45.020 $25.00 13.45.020 $0.0388 13.45.020 Ordinance — Amending PMC for Water & Sewer Connection Fees - 5 In and out City limits $0.0426 13.45.020 Water rights acquisition fee — per acre foot $4,150.00 Base water rights acquisition fee — per $1,245.00 residential unit ($4,150.00 per acre foot x potable use factor .30) 13.45.060( 2) 21.05.120( 2) 13.15.030( 1 Potable water irrigation fee (no irrigation Equal to 50% of the area of the 13.15.030( water available) lot or parcel to be served 1� expressed in acres or portion of acres x 3.5 acre feet of water x $4,150.00 (per acre foot) 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 Ordinance — Amending PMC for Water & Sewer Connection Fees - 6 Residential - single- family base fees: 3/4 and 5/8 $31.48 $38.01 $45.90 $50.26 13.20.020 inch - per month 1 inch - per $47.19 $56.98 $68.80 $75.34 13.20.020 month Senior reduced/low income: 3/4 and 5/8 $10.44 $12.61 $15.23 $16.68 3.65.150 inch - per month 1 inch - per $15.77 $19.04 $22.99 $25.18 3.65.150 month Commercial - base fees: 3/4 inch - per $44.38 $53.58 $64.70 $70.85 13.20.030 month 1 inch - per $64.88 $78.34 $94.60 $103.53 13.20.030 month 1-1/2 inch - per $124.98 $150.91 $182.22 $199.53 13.20.030 month 2 inch - per $200.42 $242.01 $292.22 $319.99 13.20.030 month 3 inch - per $273.75 $330.56 $399.15 $437.07 13.20.030 month 4 inch - per $394.44 $476.29 $575.12 $629.75 13.20.030 month Ordinance - Amending PMC for Water & Sewer Connection Fees - 7 6 inch — per $615.69 $743.45 $897.71 $983.00 13.20.030 month 8 inch — per $853.22 $1,030.26 $1,244.04 $1,362.23 13.20.030 month 10 inch —per $1226.49 $1480.99 $1,788.30 $1958.19 13.20.030 month Fee/Charge Reference Fire hydrants: Meter rental: Refundable deposit Not to exceed 110% 13.20.080 of Cost, as determined by the Director of Finance Nonrefundable removal fee $30.00 13.20.080 Monthly base rental fee $62.00 Late payment and not returning $50.00 meter after 48 hrs. (per day) Hydrant rental — outside corporate limits, $20.00 13.20.070 per year Charges for water meters and services: Meter and service costs equal to average 13.45.010 cost to City based on prior year Move meter for owner Cost + 15% 13.30.060 Ordinance — Amending PMC for Water & Sewer Connection Fees - 8 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 $6,148 13.25.010 1-inch meter $10 267 13.25.010 1-1/2-inch meter 2-inch meter 3-inch meter 4-inch meter 6-inch meter 8-inch meter 10-inch meter Outside City limits: 3/4 — 10-inch meter I $20,472 13,25.010 $32,767 13.25.010 $65,596 13.25.010 $100,392 13.25.010 $204,902 13.25.010 $327,856 13.25.010 $471,323 13.25.010 Still charges per front footage? Is this the intent? Redundant with connection fee? 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 Ordinance — Amending PMC for Water & Sewer Connection Fees - 9 Still charges per square foot? Is this the intent? Redundant with connection fee? 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 effectiv January 1, 2027 Inside City limits: 3/4-inch meter $360.00 13.25.010 T 1-inch meter $6�1.00 13.25.010 1-1/2-inch meter $1 198 13.25.010 2-inch meter 3-inch meter 4-inch meter 6-inch meter 8-inch meter 10-inch meter Water rights acquisition fee — per acre foot $1 918 $3 599 $5 999 $11,995 $ 9,192 $ 7,591 $ ,150.00 Base water rights acquisition fee — per $ ,245.00 residential unit ($4,150.00 per acre foot x potable use factor .30) 13.25.010 13.25.010 13.25.010 13.25.010 13.25.010 13.45.060(2) 21.05.120(2) 13.15.030(1) Yay! Fees went back down. Ordinance —Amending PMC for Water &Sewer Connection This is probably a typo. Potable water irrigation fee (no irrigation Equal to 50% of the 13.15.030(1) water available) Water rights transfer fee 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) $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 throup-h 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 Residential: Ordinance — Amending PMC for Water & Sewer Connection Fees - 11 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 1-1.50.010 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 Commercial Hotel/motel Residential: none 50% surcharge 50% surcharge Single-family one unit - per month 50% surcharge Senior reduced/low income - per 50% surcharge month Ordinance - Amending PMC for Water & Sewer Connection Fees - 12 13.50.070 13.50.070 13.50.070 13.50.070 Multifamily 1 — 4 units — per 50% surcharge month Multifamily 5+ units — per month 50% surcharge Commercial — base fee — per month 50% surcharge Hotel/motel base fee per unit/per 50% surcharge month Out of date Sewer stub -out connection fee Capital expansion: Residential: Fee/Charge 2016 2017 2018 $4,000.00 Fee/Charge Inside City — Homes (per unit) $1,288.00 Inside City — Hotel/motel (per $524.00 unit) Outside City — Homes (per unit) 50% surcharge Commercial: Ordinance — Amending PMC for Water & Sewer Connection Fees - 13 13.50.070 13.50.070 13.50.070 13;50.070 Reference 13.60.030 Reference 13.60.010 13.60.010 13.60.020 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: In and out City limits $25.00 13.65.020 Ordinance — Amending PMC for Water & Sewer Connection Fees - 14 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 Marc 1, 2026 and shall read as follows: 3.35.170 Sewer utility Fee/Charge Refer nce 2026 2027 2028 2029 Inside city: Consumption —per 100 cubic feet over 1,000 cubic feet: =Emmediately, is tent? Residential none Commercial $2.16 $2.33 $2.52 $2.72 13.50.030 Ordinance — Amending PMC for Water & Sewer Connection Fees - 15 Hotel/motel $2.16 $2.33 $2.52 $2.72 13.50.020 Residential: Single-family one $41.33 $44.4 $48.21 $52.07 unit — per month Senior reduced/low $13.82 $14.93 $16.12 $17.41 3.65.150 income — per month Multifamily 1 — 4 $41.33 $44.64 $48.21 $52.07 13.50.010 units — per month Multifamily 5+ $33.33 $36.00 $38.87 $41.98 13.50.01.0 units — per month Commercial — base fee — $55.57 $60.01 $64.81 $70.00 13.50.030 per month Hotel/motel — base fee per $8.76 $9.46 $10.22 $11.03 13.50.020 unit/per month Sewer stub -out connection fee Fee/Charge $4,000.00 Fee/Charge Reference 11.60.010 Reference Sewer Capital expansion charges effective through December 31, 2026 Residential: Inside City — Homes (per unit) $1,288.00 13.60.010 Ordinance — Amending PMC for Water & Sewer Connection Fees - 16 Inside City — Hotel/motel (per $524.00 13.60.010 unit) Outside City — Homes (per 50% surcharge 13.60.020 unit) 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 Ordinance — Amending PMC for Water & Sewer Connection Fees - 17 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 effectiv January 1, 2027 Residential Homes (per unit) $4,354 13.60.010 Commercial Ordinance — Amending PMC for Water & Sewer Connection Fees - 18 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 biWag. Capital Expansion/Replacement Charges — Eligibility and Utility Billing Commencement PMG 13.25.010 and 13.60.010 shall not be aeeepted by the City tmiess the premises to be serve A to eaffffneaee 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 Cit 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 utilitv 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. a A fee as set forth in Chapter 3.35 PAC and PMC 13.05 ' , for each of the 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: Ordinance — Amending PMC for Water & Sewer Connection Fees - 19 3/4-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. City fimR,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 P:NJ(' Chapter 3.35 Ply and PMC 13.05.095, for the following categories: 3/4-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 [Ord. 3654 § 1, 2004; Ord. 3608 § 13, 2003; Ord. 2961 § 5, 1993; Code 1970 § 13.22.020.] Ordinance — Amending PMC for Water & Sewer Connection Fees - 20 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 aid 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 PN4G 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 amended and shall read as follows: WIN MI-11-111,0001~1- - Amending PMC for Water & Sewer Connection Fees - 21 Are the current fees (including front footage) to be effective through the end of 2026? If so, this language is still needed for a year. �r���ttT.�I•T�i'i[�=•T�T•Tta�ti7iT_if.`ii[• - • •T. • • 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. (i) Fhe front foetaee ehar-ee under- RNIC 13.45.020 shall be waived for- eoftneetion to the newW installed line by the pai4y to thevar-eel(s) of propefty ow fl )(2)-- The installing party when connecting his or her parcel(s) of property to the extension shall pay s"ar-e + t.,ge Wain ystem capit, _;,__ __. _+lacement charges, in accordance with PMC Chapter 3.35 and .PMC 1305.095 for the parcels(s) of the property served as provided under PMC`13.45.0240-eme if the ex4ension passes by one or- more par -eels of pr-epeily 1-indew -At-h-iffir- owner -ship pfepei4y at the fime of their- eefmeefian. In deduefiee may be Qf3) 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 tim- of appligatio ti or 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 1`t' G and PMC 13.05095, shall be alai_ 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. Commercial - The sanitary sewer system capital expansion/replacement charges, as set forth in PMC Chapter 3.35 RA4E, shall be based on Equivalent Residential Unit. A Ordinance — Amending PMC for Water & Sewer Connection Fees - 22 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- serv4Ee�s speeW eenditiens apply. hn whieh for- eaehof the fellewig- Ord. 654 § 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. 3 The fees established by the preceding section shall be applicable to sewer service outside the City limits Nvkh the addition of a sehafge, as set forth in Chapter PMC 3.35 PMC ui_ic PMC,5. [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 Chapter PN1G, 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 Ordinance — Amending PMC for Water & Sewer Connection Fees - 23 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. Repeal PMC Chapter 13.65 Sewer Extensions M MI ■ .. ... I i . MMKIIII.. Orval" �3 f����lT_TOT•=!�iT'=iT.T.Tea���i�ii3rii�.T.Tra�T.��iC.TiT.T'i�e�Lr.Tii�l Section 16. PMC Section 13.70.120 Permit Required is hereby amended and shall read as follows: 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 Ordinance — Amending PMC for Water & Sewer Connection Fees - 24 Chapter 3.35 PW. 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 a 13.05.095, a",-' " d. 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. Ordinance — Amending PMC for Water & Sewer Connection Fees - 25 PASSED by the City Council of the City of Pasco, Washington, on this day of , 2026. Charles Grimm Mayor ATTEST: Debra Barham, MMC City Clerk Published: APPROVED AS TO FORM: Ogden Murphy Wallace, PLLC City Attorneys Ordinance — Amending PMC for Water & Sewer Connection Fees - 26 Waterworks Utility Historical Operating Results Operating Revenues (1) Water Sales (less City tax) Irrigation Sales Sewer Sales Process Water Reuse Sales Stormwater Sales Other Utility Charges (2) Total Operating Revenues Operating & Maintenance Expenses Salaries & Wages Personnel Benefits (3) Supplies Services (less taxes) Total Operating Expenses Net Operating Income Non -Operating Revenues (4) 2020 2021 2022 2023 2024 $ 10,639,412 $ 11,355,254 $11,964,375 $13,001,427 $14,253,326 1,656,949 1,783,145 1,858,703 1,861,594 1,923,457 9,405,342 10,036,100 10,400,116 10,546,300 10,454,685 5,194,727 4,170,626 4,524,882 7,498,080 5,551,592 1,936,365 2,070,306 2,203,255 2,072,198 2,107,598 802,427 783,138 954,071 961,270 1,312,020 29,635,222 30,198,569 31,905,402 35,940,869 35,602,678 3,984,668 4,015,954 4,817,364 5,743,786 6,224,551 1,414,194 497,962 1,444,187 1,777,076 1,771,459 2,119,289 2,086,280 2,554,116 2,738,326 2,287,692 10,707,922 10,121,183 10,178,840 10,722,397 10,593,550 18,226,073 16,721,379 18,994,505 20,981,585 20,877,252 11,409,149 13,477,190 12,910,895 14,959,284 14,725,426 Interest Income 188,493 197,458 Miscellaneous Income 343,770 89,881 Total Non -Operating Revenues 532,263 287,339 Capital Contributions — Cash $ 2,194,387 $ 3,262,342 Net Revenue Available for Debt Service $ 14,135,799 $ 17,026,871 Parity Bonds Debt Service(5) $ 4,176,102 $ 4,213,260 Parity Bonds Debt Service Coverage (6) 3.38x 4.04x 247,332 1,009,643 1,482,404 115,406 833,643 73,122 362,738 1,843,286 1,555,526 $ 2,993,144 $ 2,462,793 $ 4,182,397 $ 16,266,777 $19,265,364 $ 20,463,349 $ 3,843,812 $ 5,479,118 $ 6,775,629 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. -27- Building Permit Fees Fee Comparison - Single Family Dwelling Fees Pasco Kennewick Richland West Richland Fee Notes Fee Notes Fee Notes Fee Notes Permit Fees $2,153 $2,153 $2,153 $2, 66 Plan Review Fee $50 $0 $o $1, 20 State Fee $7 $7 $ Park impact fee $i,9o8 $1,158 Service Area 1 West $1,730 $3,19 Traffic impact fee $2,216 North TIF District $1,675 District 1- Southrid e Area $2,730 Traffic Impact Zone 1 $1 16 School Impact Fee $0 No School Impact fee $0 No School Impact fee $0 No School Impact fee $0 No School Impact fee Building Total $6,333 $ ,99z $6,612 $8,203 DPW Fees 3/4" meter fee $2 8 $1,020 $66o Water - New Service - Residential Area Charge $6148 $ 00 $0.015/sq ft. $1, 00 $2,000 $o.10 s ft. Frontage 00 $9 Sq ft $1 00 $15 Per foot frontage fee W System Fees - 3/4 inch $745 $2,100 $6,617 Sewer - New Service - Residential Area Charge $4 583 $4 8o0 ,000 o Per foot frontage fee z 000 $o.io s ft. S System Fees $2,995 $4,o6o DPW TOTAL $1o,989 $6, 5 $12,115 $15,337 TOW Cost 017,323 $11 $1$ O ATTACHMENT F AGENDA REPORT FOR: City Council November 26, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 12/1 /25 FROM: Harold Stewart, City Manager City Manager SUBJECT: Resolution No. 4690 - Agenda -Setting Policy for Regular and Special City Council Meetings and Workshops (5 minute staff presentation) ATTACHMENT(S): Resolution II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4690, adopting a Council Agenda - Setting Policy for Regular and Special Council Meetings and Workshops. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background City Manager Stewart has implemented Agenda -Setting Policies in other municipalities to improve the clarity, consistency, and timeliness in preparing and publishing agenda reports to Council. To support these same goals in Pasco, he directed staff to develop an Agenda -Setting Policy that ensures Council and the public receive agenda packets at least one week prior to each scheduled meeting or workshop. In addition, Mr. Stewart established an interdepartmental Agenda Review Committee to strengthen the quality of staff reports by ensuring they are clear, concise, and easily understood by both Council and the community. V. DISCUSSION: Recommendation It is recommended City Council approve the Agenda -Setting Policy for Regular and Special City Council Meetings and Workshops by a resolution. Proposed Policy Highlights 1. An agenda item should be in the City Manager workflow approvals a minimum of twenty-one days prior to the desired Regular Meeting or Workshop. 2. The agenda packet will be published no later than 7 days prior to the Regular Meeting or Workshop. 3. If an agenda item is added to a previously published Regular Meeting agenda packet, then the item must be placed under the appropriate action sections of the agenda and not placed on the Consent Agenda. 4. Agenda items that are routine, fully developed, or ready for consideration may proceed directly to a Regular Meeting and bypass a review at a Regular City Council Workshop. Impact (other than fiscal) The City Council and public will have ample time to review agenda packet for the upcoming regularly scheduled Council meeting or workshop. Next Steps 1. Staff will be advised of the new deadlines for finalizing and submitting agenda reports for approval. 2. Staff will work towards finalizing and publishing Council agenda packets one -week prior to the scheduled regular meetings or workshops by the first meeting in March 2026. Alternatives 1. The City Council may amend the draft resolution to include any other changes to the policy. 2. The City Council may not approve the resolution and staff would continue with the current agenda report process. RESOLUTION NO.4690 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ADOPTING A COUNCIL AGENDA -SETTING POLICY FOR REGULAR AND SPECIAL COUNCIL MEETINGS AND WORKSHOPS. WHEREAS, the City of Pasco (City) Council has two regular business meetings, and two regular workshop meetings scheduled each month per the Pasco Municipal Code (PMC) Section 2.05.010 "Time and Place of Meetings"; and WHEREAS, the City Council may also hold special and emergency special meetings per PMC Section 2.05.025; and WHEREAS, to maintain orderly and consistent agenda -setting practices, the City Council desires to implement an agenda -setting policy; and WHEREAS, this Resolution is meant to help the City Council be informed and have time to review agenda items prior to the City Council meetings, as well as to allow the public to have time to know what items will be considered on the agenda. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, that: The following agenda -setting policy is hereby established: 1. Purpose The purpose of the City of Pasco's (City) Agenda Setting Policy is to establish and adopt the following guidelines relating to setting the agenda for City Council meetings. 2. Regular City Council Meetings and Workshop Meetings a. Agenda Item Deadline Any member of the City Council, the City Manager, or Department Directors/Assistant Department Directors or designee may have an item placed on the agenda. Agenda items shall be submitted through the City Manager's established internal agenda approval process. To ensure adequate review time, an agenda item shall be submitted a minimum of twenty-one (21) business days (Monday -Friday) prior to the Regular City Council meeting or workshop at which the item is requested to appear. Resolution — Council Agenda -Setting Policy - 1 b. Agenda Item Requirements All agenda items shall be submitted using the City's agenda management software. Any applicable documents (e.g., proposed ordinances; proposed resolutions; proposed contracts; background information; presentation documents) shall be attached to the agenda item. Incomplete agenda items not accompanied by necessary documentation and/or reviewed and/or approved by appropriate departments will be rejected and not included on the City Council agenda until the agenda item is fully compliant with this policy. c. Agenda Item Placement and Meeting Type Not all agenda items must appear at both a City Council Workshop and a Regular Meeting. Workshop agendas are used for items that require Council discussion, guidance, or directional input before staff prepares final recommendations. Items that are routine, fully developed, or ready for consideration may proceed directly to a Regular Meeting agenda. The City Manager, in coordination with the City Clerk, will determine the appropriate agenda placement. d. Public Notice of Regular City Council Meeting or Workshop The City Clerk shall provide public notice for each City Council meeting or workshop in accordance with state law. The City Clerk shall prepare a proposed agenda. The City Clerk and City Manager shall review the submitted agenda items and determine which items should be considered under the consent agenda and which items should be considered under the action item agenda. As soon as the agenda is finalized and provided to the City Council, it shall be posted and provided to the public in the same manner as the meeting notice. The agenda will be published no later than seven (7) days prior to the Regular City Council meeting or workshop. e. Modification to Published Agenda Prior to Meeting In the event an agenda item is submitted after the deadline provided in Section 2(a), the agenda item shall be placed on the subsequent City Council meeting agenda, unless the City Manager, the Mayor, and the Mayor Pro-Tem unanimously agree that the agenda item should be added to the previously published agenda. If an agenda item is added to a previously published agenda, the item must be placed under the Action Items section of the agenda. Resolution — Council Agenda -Setting Policy - 2 f. Modification to Published Agenda During Meeting The City Council, by majority vote, can add or alter agenda items at the time of the meeting. 3. Special City Council Meetings a. Call for Special Meeting Special meetings and emergency special meetings shall be called as provided for in Chapter 42.30 RCW, the Open Public Meetings Act, as it now exists or when it is hereafter amended as stated in PMC Section 2.05.025. b. Agenda Items for Special Meetings The individual(s) who called for the special meeting, or his or her delegate, shall submit an agenda item to the City Clerk, with all applicable attachments. The agenda item(s) shall be submitted with the call for the special meeting, or as soon as practicable thereafter. c. Public Notice of Special City Council Meeting The City Clerk shall provide public notice of the date, time, and location of the special City Council and the topics to be considered in accordance with state law. d. Modification to Published Special Meeting Agenda Prior to Meeting In the event there is a request to add an additional agenda item to a special City Council meeting agenda, the agenda item shall only be placed on the special City Council meeting agenda if the Mayor, the Mayor Pro-Tem, and the City Manager unanimously agree that the agenda item should be added to the previously published special meeting agenda. In the event an agenda item is added to a previously published special City Council meeting agenda, the City Clerk shall provide an additional notice to the individuals or entities described in Section 3(c). e. Modification to Published Agenda During Meeting A special City Council meeting agenda cannot be modified during a special City Council meeting. Only the specific topics included in the notice may be discussed. Resolution — Council Agenda -Setting Policy - 3 4. State and Local Law In the event of a conflict between the terms of this Resolution and state and/or local law, the state and/or local law shall govern. 5. Amendment or Termination of Resolution This Resolution may be amended or terminated at any time by a majority of the City Council. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this 1st day of December, 2025. 5 DocuSigned by: � w. , D ffMFE4AE_. Mayor ATTEST: Signed by: '�I ''. �� a IA.GIA'�t D A P'}4ttYt9B-MMC City Clerk Resolution — Council Agenda -Setting Policy - 4 APPROVED AS TO FORM: ^— Sign ed by: G F u.w' K"m6RI"m'"'Law, PLLC City Attorneys ATTACHMENT G AGENDA REPORT FOR: City Council November 4, 2025 TO: Harold Stewart, City Manager City Council Regular Meeting: 11/10/25 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Adjustment to Utility Rate and Connection Fee - Water and Sewer (25 minute presentation) 1. ATTACHMENT(S): Presentation Reduced Connection Fee Option 11. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: All scenarios presented will increase utility rates and connection fees for City's water and sanitary sewer utility users. IV. HISTORY AND FACTS BRIEF: This item was presented at the October 6th Regular Council Meeting by Brooke Tacia, Project Manager from Bowman Consulting Group and Maria Serra, City's Public Works Director, including full rate study and resulting rates and connection charges options. As an enterprise fund, a utility is treated as an independent business, separate from the general government services, both in accounting practices and legal requirements. It is standard for utility systems to conduct rate studies on a periodic basis to ensure they provide adequate revenue for the utilities and that the system conforms with laws, obligations, and conditions that impact its operation. A rate study evaluates annual revenue necessary to fund all financial obligations like operating expenses, debt service payments, and capital investments. Furthermore, the system is required to meet and maintain certain Page 41 of 282 -p CO CD 00 0 N 00 N Connection Charge Calculation Existing Cost Basis Current & Future Capacity by Function Future Cost Basis Future Capacity by Function $2,268 $1,725 $2,858 Total Connection Charge per MCE/ERU $6y148 $4,583 Notes: MCE = Meter Capacity Equivalent, or meter size ERU = Equivalent Residential Unit -4FCS B--";-, Future Capacity Added = 21,000 new units Slide 35 •;�� Connection Charge Results • Water connection charge will be determined by meter size 3/a meter = $6,148 Charges increase for larger meters and are related to the flow capacity of the meter • Sewer connection charge will be calculated by equivalent residential units _U a) (ERUs) (0 CD » 1 single family residence = 1 ERU O CO » ERU = 249 gallons per day (non-residential uses calculated based on flow) �• Calculated charges are "maximum allowable" By policy may set below maximum allowable and / or phased -in -Rates make up the difference 0 • May be adjusted annually by an accredited inflation index (e.g., ENR CCI) > �'�_,� Slide 36 CD 00 N O IV OD N •;�� Impacts of Connection Fees • Revenue requirement scenarios assume connection charges are phased in to the calculated maximum over three years • In absence of connection charge increases, rate revenues will need to increase to fund all obligations • Without connection charge increases, each rate strategy presented would need to increase by an average of 1.50% per year A1,*:�FCS a Bo mwn cw*�p+ny Slide 39 Checklist for Proposed Water and Sewer Connection Fees in Pasco, WA YES NO RESPONSE?QUESTION WHY THIS Q1: Has the current City Attorney completed a formal review of the No Only Staff have spoken on the matter in the public setting. 3 proposed fees and provided direct feedback to Council? W q2: Would the City be in a good position to defend their position Sufficient materials have not been provided. FCS did not prepare the type of study typically provided for decisions of this magnitude, which is not consistant with their were it to be challenged in court? No typical practice . Instead, a limited set of spreadsheets and a PowerPoint presentation were used as the basis for collecting tens of millions of dollars in additional fees. Staff implemented different fees than their consultant recommended. lag J Has the City addressed the legal concerns raised by No Stakeholders have identified concerns regarding the legality of the proposed fees which have not been substantively addressed. stakeholders? stakeholders? 06 Q4: Have all current Councilmembers participated in a Council No Initial connection fee scenarios were presented to the previous City Council in late 2025. New Councilmembers have not participated in a dedicated workshop. workshop about this proposed fee increase? 6 Z Q Q5: Has the typical level of due dilligence been performed? No Council and the public were not provided a comprehensive report with detailed justification and rationale supporting the proposed fees. Only raw spreadsheets were shared, W = U LU and the data they contain is inconsistent with the Staff -proposed fee increase and difficult to evaluate. - a 0 Z ° Q6: Have stakeholder questions and concerns been answered? No Multiple questions submitted by stakeholders remain unanswered. o: Q7: Was a completed agenda report posted a week in advance for No A placeholder note was provided a week in advance (without content), a rough draft of the agenda report still pending legal review was posted on 1119, and presumably o final councilmember and stakeholder review per Resolution 4690? staff report will be available the dov of the meetinq, leavinq minimal time for stakeholder and councilmember review. See Attachment F to 01 20 2026 Handout. Q8: Has an independent professional been used to prepare the V. 14 FCS Group was hired to develop updated water and sewer connection fees and a maximum allowable fee analysis was completed. proposed fee increase? 00 Q9: Are Staff s recommendations consistent with those of their For example, FCS Group calculated that the maximum allowable water connection fee is $6,148 and recommended a three year escalation period to reach this maximum fee, Z consultant? and escilation not to exceed a construction cost index. City Staff proposed implementing this maximum fee immediately and escalating it significantly in excess of construction cost index limits over the following years, resulting in fees approaching nearly twice the consultant's calculated maximum within a short timeframe. NQ10: Z oaG Is the City's course of action well documented so it can easily be checked for accuracy by Councilmembers, as well as Key supporting documentation from FCS Group is incomplete. FCS did not prepare the type o stud typically Y pp 9 f p P P P YP J° Y tYP Y provided for decisions of this magnitude. Instead, large and difficult -to -interpret spreadsheets were presented without clear justification or an easy -to -follow rationale. astakeholders? Z Z Q31: Is the financial model that served as the basis for this Among a number of things, the near -term wholesale replacement of the Butterfield Water Plant was not contemplated in the comprehensive plan as a burden on the water ,LU proposed fee increase consistant with the Comprehensive Plan, as utility fund. I.- Z required? Q12: Is the correct timeframe used for the rate analysis? No Costs of capacity creating infrastructure with o 50 year service life are compressed to within a 20 year window, artifically shifting responsibility to near -term connections. Q13: Is the lifecycle of various components correctly reflected in No The proposed front -loaded connection fees impose decades of future capacity costs on early connections. Infrastructure with a 60-80 year service life is proposed to be the proposed rate? funded by the first 20 years of new connections, allowing later users to benefit without proportionate contribution. Q14: Are the proposed fees free from overlap with other existing For example, more than $10 million in water rights costs are proposed to be included in the water connection fee, while the City already requires developers to provide water fees, to prevent double-dipping? No rights or pay an in -lieu fee. Under the proposed structure, developers would pay twice for the same thing. Cr The proposed fees would charge a new homeowner: 1) The cost of existing infrastructure escalated to today's dollars which would only be used briefly before replacement w Q15: If these connection fee updates were passed, would Pasco's (through connection fees), 2) the cost of capacity -increasing improvements to provide the expanded capacity needed to serve the new home (through connection fees), and 3) Zutility fees as a whole fairly allocate burden between Pasco's the cost of replacing existing infrastructure which is past its useful service life (monthly service fees, such as the Butterfield Water Treatment Plant). N current and future citizens? Are the proposed fee increases Zproportionate to the services provided? In contrast, existing homeowners would only pay for replacing existing infrastructure that is past its useful service life (through monthly service fees), and the purchase price of their home may have included a relatively modest connection fee for capital expansion costs. Q 'i The proposal includes the Zone 2 and Zone 3 water tanks as capacity enhancing upgrades, even though the City's adopted Comprehensive Plan identifies these facilities as Q16: Are existing deficiencies excluded from the connection fee addressing existing deficiencies. The proposal also includes seismic upgrades to bring older facilities into compliance —another form of deficiency correction that cannot legally charge? be funded by connection fees. Connection fees cannot fund existing deficiencies. See Attachment D to 112012026 handout, many existing deficiency projects were included, si nificently inflating the proposedfee. C Q17: Has Staff explored a wide variety of options? A comprehensive funding alternatives analysis has not been performed. Council was not presented with options combining modest citywide rate increases, grants, low interest Q a loans, or Tax Increment Financing (TIF). Relying solely on large connection fees concentrates financial risk on new connections. 2 Y Q18: Were assumptions carefully evaluated and sensitivity analysis No sensitivity analysis was provided to test slower growth scenarios. New connections and associated service fees represent a majority of projected funding, yet Staff have N Q R performed? acknowledged that permit fee revenue has been declining as fees increase and the market slows down. Z 06 Q19: Is the proposed fee increase relatively inconsequential and The proposed fee would cost individual projects millions of dollars that were not considered when land was purchased, significent investments made, and approvals were a Z therefore low risk? If high risk, were extra percautions taken to obtained. Cc -mitigate the risk? Prepared by Jon Padvorac for 1/20/2026 Pasco City Council Meeting PASCO SEWER CONNECTION FEE PROJECT LIST % R&R % R&R CITY CALC'd STAKEHOLDER CALC'd (City (Stakeholder Repair / Repair / Upgrade / Project # Description Calc'd) Check) Total Cost Replacement Upgrade /Expansion Replacement Expansion Notes 1 9th & Washington Lift Station Improvements 100% 100% $ 1,000,000 $ 1,000,000 $ $ 1,000,000 $ 2 Annual Sewer Upsizing Program 0% 0% $ 3,160,190 $ - $ 3,160,190 $ - $ 3,160,190 3 CSP #14 - Court St Sewer Main Upsize - Rd 100 to Rd 509'0 50% $ 4,818,000 $ 2,409,000 $ 2,409,000 $ 2,409,000 $ 2,409,000 110 4 CSP #15 - Court St Sewer Main Upsize - Rd 97 to Rd 88 50% 50% $ 3,730,000 $ 1,865,000 $ 1,865,000 $ 1,865,000 $ 1,865,000 5 CSP #17 - USACE Easement Sewer Main Upsize - Rd 50% 50% $ 4,225,000 $ 2,112,500 $ 2,112,500 $ 2,112,500 $ 2,112,500 72 to Rd 60 6 CSP #18 - Sylvester St Sewer Upsize - Rd 60 to 44 50% 50% $ 6,400,000 $ 3,200,000 $ 3,200,000 $ 3,200,000 $ 3,200,000 7 CSP #20 - USACE Easement Sewer Main Upsize -Rd 36 50% 50% $ 2,825,000 $ 1,412,500 $ 1,412,500 $ 1,412,500 $ 1,412,500 West of US 395 8 CSP #21 - USACE Easement Sewer Main Upsize - Rd 50g'o 50% $ 1,525,000 $ 762,500 $ 762,500 $ 762,500 $ 762,500 28 to US 395 9 CSP #23 - Washington St Sewer Upsize -15th Ave to 50% 50% $ 3,050,000 $ 1,525,Q00 $ 1,525,000 $ 1,525,000 $ 1,525,000 9th & Washington Lift Station This lift station is being installed due to a desire by a very small number of parcels to develop, and does not benefit the City at large or a significent amount 10 Riverview West Sewer Lift Station 0% 100% $ 3,365,000 $ - $ 3,365,000 $ 3,365,000 $ of users over the next 20 years. This project which benefits just a very small number of parcels in the near term should have the costs assigned to developable parcels within the service basin via a regional connection fee, latecomer, or LID mechanism. This lift station is being installed due to a desire by a very small number of parcels to develop, and does not benefit the City at large or a significant amount 11 Road 68 Lift Station 0% 100"m $ 3,500,000 $ - $ 3,500,000 $ 3,500,000 $ of users over the next 20 years. This project which benefits just a very small number of parcels in the near term should have the costs assigned to developable parcels within the service basin via a regional connection fee, latecomer, or LID mechanism. 12 Wastewater Treatment Plant (WWfP) Improvements 25% 50% $ 10,200,055 $ 2,550,014 $ 7,650,041 $ 5,100,028 $ 5,100,028 Unknown - inadequate information provided to justify costs. They are surprisingly round figures, which means they likely weren't precisely calculated. Phase 2 This should be investigated further. Wastewater Treatment Plant (WWTP) Improvements 75c $ 32,850.000 $ 16,425,000 $ 16,425,000 $ 24,637,500 $ 8,212,500 Unknown - inadequate information provided to justify costs. They are surprisingly round figures, which means they likely weren't precisely calculated. 13 Phase 3 50% o 1his should be investigated further. Wastewater Treatment Plant (WWiP) Improvements I51:'6 $ 37,500,000 $ 18,750,000 $ 18,750,000 $ 28,125,000 $ 9,375,000 Unknown - inadequate information provided to justify costs. They are surprisingly round figures, which means they likely weren't precisely calculated. 14 Phase 4 50% 1 This should be investigated further. This value (which actually should be $5,764,435 per the council workshop packet dated 6/9/2025) is a requirement of the City's funding approach to 15 LID 152 CAPACITY RESERVE 0% 1 ott°o $ 6,000,000 $ - $ 6,000,000 $ 6,000,000 $ - provide a temporary security the LID debt. This value is not constructing anything that adds capacity, and it is not stated that this value would be refunded to those who paid it after the reserve fund is no longer needed, and this is unlikely. Unless this fund ammount would be refunded to those who paid the connection f t., (with interest), funds put in a temporary security fund should not be assigned to a connection fee. BIG TICKET ITEMS FOR O&M $ - $ $ - $ 16 Primary Clarifier 211 & 221 full replacement of internal 100% 100% 1,000,000 $ 1,000,000 $ - $ 1,000,000 $ - mechanism, Concrete rehab, etc 17 Secondary Clarifier 702 Rehab (200K) 2027 100% 1001/0 250,000 $ 250,000 $ $ 250,000 $ 18 Hot water Boiler Retube (2 boilers at 50K each) 2035 100% 100% 150,000 $ 150,000 $ $ 150,000 $ 19 Rebuild Headworks Screens (2 units at 175K each) 100% 100% 612,500 $ 612,500 $ $ 612,500 $ 2028 20 Repair/replace buildings/digesters roof membranes 100% 100% 300,000 $ 300,000 $ $ 300,000 $ 20QK? 2028/2029 21 Replace various Varec gas equipment, update to 100% 100% 312,500 $ 312,500 $ $ 312,500 $ current safety codes 250K 2025/202 22 Replace Dystor membranes (clean digester, replace 100% 100% 750,000 $ 750,000 $ $ 750,000 $ valves and membranes 500K) 2025 23 Replace Boiler water Hot water supply/return lines and 100% 100% 600,000 $ 600,000 $ - $ 600,000 $ - associated equipment 2027 24 Replace time silo with additional caustic soda tank with 100% o 100% 400,000 $ 400,000 $ - $ 400,000 $ - containment and pump (400K) 25 Replace Primary effluent piping between primary l00% 1000/0 500,000 $ 500,000 $ - $ 500,000 $ - clarifiers and Aeration basins 2027 2s Add locker room/office space above primary ppum 100% 100°i° 1,000,000 $ 1,000,000 $ - $ 1,000,000 $ - room & combine existing locker room 27 Replace Blower 605 & 606 (installed 2012) with larger 100% 100% 700,000 $ 700,000 $ - $ 700,000 $ blowers to match 601 & 602 700K 28 Replace Non potable water pumps 2028 100% 100% 800,000 $ 800,000 $ $ 8.00,000 $ 29 Replace Non potable backwash screen 50K 2028 100% 100% 50,000 $ 50,000 $ '~�( �( 50,000 30 9th/WA LS -Create Emergency Bypass Plan 100% 100% 0 $ $ $ SUM: $ 131,573,245 $ 59,436,514 $ 72,136,731 $ 92,439,028 39,134,218 Note 1: When an existing deteriorated facility is replaced because it is at the end of its useful service life, and rather than replace in -kind, the City replaces with a facility providing greater capacity, only the cost differential between replacing in -kind and replacing and upsizing should be allocated to connection fees Correction: 20 to 50 yr design life 250% Correction- Deficiency projects removed 184% pparnx:+3un� Corrected Capital Expendature Forecast 1 $ 16,608,677 50 divided by 20 - making sure that each connection pays their fair share of the facility, and future connections don't get a "free ride" after the 20 year City proposed financial planning horizon 30,718,166 divided by 70,847,316 PASCO WATER CONNECTION FEE PROJECT LIST % R&R % R&R CITY CALC'd STAKEHOLDER CALC'd (City (Stakeholder Repair / Repair / Upgrade / Upgrade/Expansion Notes Project# Description Cate'd) Check) Total Cost Replacement Replacement Expansion 1 BWTPearlyworks 100% 100°% $ 14,300,000 $ 14,300,000 $ $ 14,300,000 $ 2 BWTP Phase 1 100% 100% $ 33,395,000 $ 33,395,000 $ $ 33,395,000 $ 3 BWTP Phase 1 100°% 100°% $ 12,500,000 $ 12,500,000 $ $ 12,500,000 $ 4 BWTP Phase 1 100% 100% $ 27,400,000 $ 27,400,000 $ $ 27,400,000 $ 5 BWTP Phase 2 100% 100°% $ 3,800,000 $ 3,800,000 $ $ 3,800,000 $ 6 BWTP Phase 3 100% 100% $ 8,700,000 $ 8,700,000 $ $ 8,700,000 $ 7 BWTP Phase 3 100% 100% $ 7,800,000 $ 7,800,000 $ $ 7,800,000 $ 8 BWTP Phase 4 100% 100°% $ 25,305,000 $ 25,305,000 $ $ 25,305,000 $ 9 BWTP Phase 4 100% 100°% $ 12,500,000 $ 12,500,000 $ $ 12,500,000 $ 10 BWTP Phase 4 100°% 100°% $ 11,095,000 $ 11,095,000 $ $ 11,095,000 $ 11 BWTP Phase 5 100°% 100% $ 29,598,000 $ 29,598,000 $ $ 29,598,000 $ 12 BWTP Phase 5 100°% 100% $ 12,500,000 $ 12,500,000 $ $ 12,500,000 $ 13 BWTP Phase 5 1000% 100% $ 16,720,000 $ 16,720,000 $ $ 16,720,000 $ 14 BWTP Phase 6 100°% 100% $ 12,000,000 $ 12,000,000 $ $ 12,000,000 $ 15 BWTP Phase 6 100% 100°% $ 14,800,000 $ 14,800,000 $ $ 14,800,000 $ 16 BNSF Land Purchase 100% 100°% $ 1,500,000 $ 1,500,000 $ $ 1,500,000 $ - 17 West Pasco Water Treatment Plant Expansion (Phase 0°% 0% $ 2,600,000 $ - $ 2,600,000 $ - $ 2,600,000 2) -12MGD 18 West Pasco Water Treatment Plant Expansion Phase 3 0°% 0% $ 14,700,000 $ $ 14,700,000 $ - $ 14,700,000 &4 19 Reservoir Storage Tank - Zone 2 0% 100% $ 10,000,000 $ $ 10,000,000 $ 10,000,000 $ - Designated as an existing deficiency in the comprehensive plan, not eligible for inclusion in a connection fee 20 Reservoir Storage Tank - Zone 3 (corrected to 3, staff Q°% 100% $ 12,000,000 $ - $ 12,000,000 $ 12,000,000 $ - Designated as an existing deficiency in the comprehensive plan, not eligible for inclusion in a connection fee report had a typo, had Zone 2 Listed twice Road 49 Water Main Replc - Replc 2in with Bin South of 0% 100% $ 1,000,000 $ $ 1,000,000 $ 1,000,000 $ Replacing existing deteriorating 2" pipe with minimum size allowed per City standards - not "upsized" for regional benefit. Should not be included in 21 Sylvester connection fee. 22 Seismic Improvements - Various Facilities 0°a 100% $ 3,500,000 $ $ 3,500,000 $ 3,500,000 $ Existing faciUties have existing seismic deficiencies, this improvement does not increase capacity and should not be included in connection fees. Richardson Road Water Main Repic Road 92 to Road 100% 100% $ 485,100 $ 485,100 $ $ 485,100 $ Water line not connected, made up of undersized thin wall PVC pipe. Will be replaced with 8" ductile iron pipe meeting minimum City standards, 23 96 eliminating 3 dead-end lines and installatin of new hydrants to meet current standards 24 Riverhaven St Water Main Extension - Rd 36 to 40 0°% 100% $ 880,000 $ $ 880,000 $ 880,000 $ Repairing an existing deficiency (existing dead-end water mains), to increase pressure and Row locally around the existing deficiency, not a system capacity upgrade. Should not be included in connection fees. 25 Road 60 Water Main Replc - Court St to W. Pearl 50'Yo 75% $ 1,365,000 $ 682,500 $ 682,500 $ 1,023,750 $ 341,250 placing existing deteriorating 6" thin wall PVC. When replaced, 12" line will be installed. See Note 1. Exact percentage estimated - would need more specifics to confirm Replacing outdated 4" and 6" thin wait irrigation class PVC water lines with more durable 8" and 12" ductile iron pipes not meeting current standards and 26 Road 76 Water Main Replc - Wernett Rd to W. Court St 1000% 100% $ 960,000 $ 960,000 $ - $ 960,000 $ - providing hydrants per current standards. See note 1. When 8" pipe is installed, this is the minimum size allowed per City standards -not "upsized" for regional benefit. Should not be included in city-wide connection fee. Road 103 Water Main Extension - Maple Dr to Willow 0% ° 900"m $ 255,150 $ - $ 255,150 $ 255,150 $ Repairing an existing deficiency (existing dead-end water mains), to increase pressure and flaw locally around the existing deficiency, not a system 27 Way capacity upgrade. Should not be included in connection fees. 28 Road 103 Water Main Extension - Maple Dr to Willow 00%100Su $ 255,150 $ - $ 255,150 $ 255,150 $ - Duplicate entry by mistake -should not be included in connection fee. W Replacing existing deteriorating 2" pipe with minimum size allowed per City standards -not "upsized" for regional benefit. Should not be included in 29 Afton St Water Main Extension - Wehe Ave to Alley East 0 100ti:-o $ 490,000 $ 122,500 $ 367,500 $ 490,000 $ connection fee. Repairing an existing deficient (existing dead-end water mains), to increase pressure and flow locally around the existing deficiency, not P g g Y( g ) P Y r� Y of Owen Ave a system capacruf uos rade. Should nat be included in connection fees. 30 Star lane Water Main Replc Road 100 to Road 97 100% 100% $ 325,000 $ 325,000 $ $ 325,000 $ Replacing existing undersized 2' water line not meeting current standards. Replacement Will be 8", the minimum size per City standards, not upsized for regional benefit. Should not be included in connection fee. Road 47 Water Main Replacement-W Nixon St to W 100°0 $ 950,000 $ 950,000 $ $ 950,000 $ This protcc:t does not appear to be in the CIP or comprehonsive plan, so information about it is not available. If it indeed is not in the comprehensive plan, 31 ,Sylvester St. 1004+� - it cannot be included in the connection fee. 32 26th Ave, Court St/Autoplex Way, & Court Court SUN50'➢, 100% $ 950,000 $ 475,000 $ 475,000 $ 950,000 $ This project does not appear to be in the CIP or comprehensive plan, so information about it is not available. It it indeed is not in the comprehensive plan, St/Rd 32 Valve Installations it cannot be included in the connection fee. 33 Bonneville St Valve Replacement on Transmission 1000/. 100% $ 950,000 $ 950,000 $ $ 950,000 $ Main - N 13th Ave to N 20th Ave 34 Alley between N 4th Ave & N 5th Ave Water Main 100% 100°% $ 950,000 $ 950,000 $ $ 950,000 $ Replacement - W Jan St to 1-182 ROW 35 Alley between N 4th Ave & N 5th Ave Water Main 100°% 100% $ 950,000 $ 950,000 $ - $ 950,000 $ Replacement - W Court St to W Marie This project does not appear to be in the CIP or comprehensive plan, so information about it is not available. If it indeed is not in the comprehensive plan, 36 Rd. 36 Water Booster Station - Installation of 0% 100% $ 950,000 $ - $ 950,000 $ 950,000 $ it cannot be included in the connection fee. Additionally, lack of a backup generator is an existing deficiency, and the addition of a backup generator does Emergency Backup Generator not increase system capacity. This charge should not be included in the connection fee. 0% 100% $ 10,105,100 $ $ 10,105,100 $ 10,105,100 $ The City of Pasco requires residential subdivisions (the primary water consumer) to either dedicate water rights adequate to serve the subdivision or pay 37 Water Rights Purchases an in -lieu fee. Also incorporating a water rights fee into connection fees is double-dipping: This charge should not be included in the connection fee. 38 Devetopmentupsize 0% 1 $ 10,076,916 $ $ 10,0 6,91 $ - $ 10,076,9 39 Broadmoor area upsize 0% Is 3,000,000 $ 3,000,600 3 00, 00 SUM: $ 321,610,416 $ 250,763,1r $ 70,847,316 J 290,892,2r $ Note 1: When an existing deteriorated facility is replaced because it is at the end of its useful service life, and rather than replace in -kind, the City replaces with a facility providing greater capacity, only the cost differential between replacing in -kind and replacing and upsizing should be allocated to connection fees Correction: 20 to 50 yr design life 250% Correction: Deficiency projects removed 231°% Corrected Capital Expendature Forecast $ 14,740,310 30,718,166 50 divided by 20 - making sure that each connection pays their fair share of the facility, and future connections don't get a "free ride" after the 20 year City proposed financial planning horizon 30,718,166 divided by 70,847,316