Loading...
HomeMy WebLinkAbout2026.07.20 Council Meeting Packet AGENDA City Council Regular Meeting 7:00 PM - Monday, July 20, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco-wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this meeting. To listen to the meeting via phone, call 1-332-249-0718 and use access code 114373633# City Council meetings are broadcast live on PSC-TV Channel 191 on Charter/Spectrum at streamed and Richland and Pasco in Cable www.pasco-wa.gov/psctvliveand on the City’s Facebook page at www.facebook.com/cityofPasco. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Servicio de intéprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos dias antes para garantizar la disponiblidad. request. upon provided (Spanish may service interpreter language be Please provide two business day's notice to the City Clerk to ensure availability.) 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion these items. If further discussion is desired by of Councilmembers, the item may be removed from the Consent Agenda to the Page 1 of 194 Regular Agenda and considered separately. 6 - 19 (a) Approval of Meeting Minutes for July 6th To approve the minutes of the Pasco City Council Regular Meeting held on July 6, 2026, Regular Meeting. 20 - 21 (b) Bills and Communications - Approving Claims in the Total Amount of $8,281,420.02 $8,281,420.02 of amount total in claims approve To the ($3,146,521.03 in Check Nos. 279052 - 279470; $3,799,122.30 in Electronic 853597 853860; - 853587, 853586 Nos. Transfer - $13,487.80 in Check Nos. 55352 - 55390; $1,322,288.89 in Electronic Transfer Nos. 30244815 - 30245560). 22 - 34 (c) Resolution No. 4764 - Washington State Department of Transportation (WSDOT) Detour Agreement To approve Resolution No. 4764, authorizing the City Manager to execute Agency Haul Road/Detour Agreement with Washington State Department of Transportation for their US 395 Kartchner St I/C NB Ramp Terminal Improvements project. 35 - 38 (d) Planning Commission Appointment To appoint Sonny Virakpanyou to Position No. 1 (term expiration date 12/31/2027) to the Planning Commission. 39 - 41 (e) LEOFF Disability Board Appointment To appoint Jodi Christiansen to Position No. 3 (term expiration date 07/15/2028) to the LEOFF Disability Board. 42 - 48 (f) Pasco Public Facilities District Board Reappointment and Appointment To reappoint Marie Gillespie to Position No. 4 and appoint Craig Maloney to Position No. 5 to the Pasco Public Facilities District Board with both terms expiring on 07/15/2030. 5. PROCLAMATIONS AND ACKNOWLEDGEMENTS 6. PUBLIC COMMENTS - The public may address Council on any items unless it relates to a scheduled Public Hearing. This item is provided to allow the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to Page 2 of 194 specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. Lastly, when called upon, the into residency county city or name your state please and microphone before providing your comments. 7. REPORTS FROM COMMITTEES AND/OR OFFICERS (a) Verbal Reports from Councilmembers 8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 49 - 63 (a) Public Meeting & Resolution No. 4765 - Accepting a Notice of Intent 10% Annexation Goodwin Annexation Commence to Petition (ANX 2026-002) (5 minutes) CONDUCT A PUBLIC MEETING MOTION: I move to approve Resolution No. 4765, accepting the Notice of Intent to Commence Annexation proceedings for the Goodwin Annexation for Parcel No. 118180157 (Parcel 1 of AFN 456145), located south of Harris Road and north of Interstate 182, southwest of the future Road 108 and Harris Road intersection, in Section 18, Township 9 North, Range 29 E.W.M., establishing the proposed whether determining boundary annexation and simultaneous zoning and the assumption of bonded indebtedness will be required. 64 - 82 (b) Public Hearing and Ordinance No. 4848 - R-15 and R-S-12 Frontage Improvement Code Amendments CONDUCT A PUBLIC HEARING MOTION: I move to adopt Ordinance No. 4848, amending Pasco Municipal Code (PMC) Title 12.04 required sidewalk and driveway improvements; Title 12.36 concurrency; and Title 21.15 complete streets policy; and providing for severability and establishing an effective date. 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 83 - 86 (a) Ordinance No. 4849 - Creating Chapter 3.31 of the Pasco Municipal Code – Local Income Tax MOTION: I move to adopt Ordinance No. 4849 creating a new Chapter 3.31 of the Pasco Municipal Code entitled "Local Income Tax," within title 3 "Revenue and Finance" of the Pasco Municipal Page 3 of 194 Code, to oppose a local income tax on the residents and businesses of the City of Pasco providing for severability and establishing an effective date. 87 - 93 (b) Ordinance No. 4850 - Imposing a Six-Month Moratorium on Licenses and Permits related to New Data Centers, Cryptocurrency Mining Facilities, Blockchain Computing Facilities and Artificial Intelligence Computing Facilities on MOTION: I move to adopt Ordinance No. 4850, an ordinance of the City of Pasco, Washington, imposing a six-month moratorium on the acceptance and processing of business licenses and/or development permit cryptocurrency centers, data applications to related new mining facilities, blockchain computing facilities, artificial intelligence computing computing facilities; high-density and facilities, other setting forth preliminary findings in support of this moratorium; declaring an emergency; establishing an immediate effective date; authorizing directing to staff and only; summary by publication develop and return to City Council with recommended land use regulations addressing the permitting and licensing of these facilities within six months of adoption of the moratorium. 94 - 106 (c) Resolution No. 4766 - Washington State University and the City of Pasco for the Use of Body-Worn Camera Footage for Research Purposes. Motion: I move to approve Resolution No. 4766, authorizing the City Manager to execute an Agreement between the City of Pasco and Washington State University for the use of Pasco Police Department body-worn camera footage for approved academic research purposes. 107 - 111 (d) Resolution No. 4767 - Approval for Application to Public Works Board for Pre-Construction Funding for Butterfield WTP Land Acquisition MOTION: I move to approve Resolution No.4767, authorizing the submittal of a Public Works Board Pre-Construction Loan Application for the Butterfield WTP Land Acquisition. 112 - 130 (e) Resolution No. 4768 – Right-of-Way Dedication and Reimbursement Agreement MOTION: I move to approve Resolution No. 4768, authorizing the City Manager to execute right-of-way dedication and reimbursement agreement Big Sky Developers LLC, a Washington Limited Liability Company for additional right-of-way dedication along Convention Drive. 131 - 137 (f) Resolution No. 4769 - Targeted Urban Area (TUA) Tax Exemption Page 4 of 194 Program MOTION: I move to approve Resolution No. 4769, declaring intent to designate portions of the city’s industrial zones as a Targeted Urban Area for the purpose of an industrial and manufacturing tax exemption and establishing a public hearing on 7:00 p.m. on Tuesday, September 8, 2026. 10. UNFINISHED BUSINESS 138 - 180 (a) Agreement – Harris Road Realignment Agreement with VWA- Pasco, LLC, ("Visconsi") for Broadmoor Development MOTION: I move that the City Council authorize the City Manager to execute the Harris Road Realignment Agreement with VWA-Pasco, LLC., ("Visconsi") in substantially the form presented, with authority to make minor administrative or non-substantive revisions as may be necessary prior to execution. 11. NEW BUSINESS 12. MISCELLANEOUS DISCUSSION 181 - 192 (a) City Manager Report 13. EXECUTIVE SESSION 14. ADJOURNMENT 15. ADDITIONAL NOTES 193 - 194 (a) Adopted Council Goals (Reference Only) Page 5 of 194 AGENDA REPORT FOR: City Council July 13, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Gabriela Sanchez, City Clerk City Manager SUBJECT: Approval of Meeting Minutes for July 6th I. ATTACHMENT(S): July 6, 2026 Regular Meeting Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Regular Meeting held on July 6, 2026, Regular Meeting. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 194 MINUTES City Council Regular Meeting 7:00 PM - Monday, July 6, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar CALL TO ORDER The meeting was called to order at 7:00 PM by Charles Grimm, Mayor. ROLL CALL Councilmembers present:Abel Campos, Joe Cotta, Mark Figueroa,Calixto Hernandez, Leo Perales, Davis Milne, Charles Grimm Councilmembers attending remotely: Councilmembers absent: Staff present: Harold Stewart, City Manager; Richa Sigdel, Deputy City Manager; Angela Pashon, Interim Parks & Recreation Director; Kevin Crowley, Fire Chief; Kevin Hebdon, Finance Director; Daniel Kenny, City Attorney; Craig Raymond, Deputy Community & Economic Development Director; Brent Cook, Interim Police Chief; Maria Serra, Public Works Director; Gabriela Sanchez, City Clerk and Krystle Shanks, Deputy City Clerk The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA Approval of Meeting Minutes for June 8th, June 15th, June 22nd and June 23rd To approve the minutes of the Pasco City Council Special Meeting held on June 8, 2026, Workshop Meeting held on June 8, 2026, Regular Meeting held on June 15, 2026, Workshop Meeting held on June 22, 2026 and Special Meeting held on June 23, 2026. Bills and Communications - Approving Claims in the Total Amount of $6,863,260.41 and Write-off Totaling $311,650.37 Page 1 of 13Page 7 of 194 To approve claims in the total amount of $6,863,260.41 ($3,173,328.28 in Check Nos. 278803 - 279051; $2,342,177.84 in Electronic Transfer Nos. 853565 - 853569, 853574 - 853578, 853581 - 853585; $16,161.30 in Check Nos. 55315 - 55350; $1,331,592.99 in Electronic Transfer Nos. 30244089 - 30244814). To approve bad debt write-off for accounts receivable including Utility Billing, Ambulance, Cemetery, General Accounts, and Miscellaneous Accounts in the total amount of $311,650.37 and, of that amount, authorize $311,650.27 to be turned over for collection. Crash Prevention Zone Letter for the US 12 Corridor between "A" Street and Tank Farm Road (5 min) MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales To authorize the Mayor to submit a formal request to the Washington State Department of Transportation (WSDOT) for designation of the US 12 Corridor between "A" Street and Tank Farm Road as a Crash Prevention Zone. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos Resolution No. 4758 - Interagency Agreement with the Washington State Criminal Justice Training Commission MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales To approve Resolution No. 4758 authorizing the City Manager to execute an interagency Justice Criminal State the between agreement Washington Training Commission and the City of Pasco for the provision of facilities and personnel support for the Basic Law Enforcement Academy. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos *Resolution No. 4762 - Setting a Date to Consider a Notice of Intent to Commence Annexation Proceedings for Goodwin Annexation (ANX 2026-002) MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales To approve Resolution No. 4762, setting 7:00 PM on July 20, 2026, as the time and date for a public meeting with the initiators to consider the Goodwin Notice of Intent to Commence Annexation for Parcel No. 118180157 (Parcel 1 of AFN 456145), located south of Harris Road and north of Interstate 182, southwest of the future Road 108 and Harris Road intersection, in Section 18, Township 9 Page 2 of 13Page 8 of 194 North, Range 29 E.W.M. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales To approve the Consent Agenda as read by roll call vote. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos PROCLAMATIONS AND ACKNOWLEDGEMENTS PUBLIC COMMENTS Ken Pitky, expressed support for the proposed short-term rental ordinance and thanked the Council and staff for their work developing a framework that balances property rights with neighborhood protection. He requested clarification on whether a separate business license would be required for each short-term rental property, noting that long-term rental owners are not required to obtain multiple business licenses. He also asked Council to reconsider or clarify the proposed good neighbor policy, expressing concern that the one-hour response requirement for complaint may be difficult to meet given existing law enforcement and code enforcement resources. Lastly, he requested clarification regarding the inspection and certificate of inspection requirements, including whether inspections would be required annually and how those requirements compare to other residential rental properties. He reiterated his support for the ordinance and encouraged further discussion and clarification of these provisions. Bob Mangione, spoke in support of the proposed short-term rental ordinance. He thanked the council for considering the issue and expressed appreciation for the community members, business leaders, and organizations in attendance supporting the ordinance. He discussed the formation of the Columbia Basin STR Alliance, describing its mission to promote responsible short-term rental operations through advocacy, education, and stewardship. Mr. Mangione shared that health challenges have prevented him from continuing full-time work in his family's contracting business, making short-term rental income an important source of financial support. He stated that the proposed ordinance would benefit responsible short-term rental operators, local families, and small businesses, and encouraged the council to approve the ordinance. Page 3 of 13Page 9 of 194 Lynn, spoke in support of the proposed short-term rental ordinance. She shared that following the death of her husband, her financial circumstances changed significantly. She explained that the ability to operate a short-term rental in her longtime family home could provide supplemental income, allowing her to remain in her home despite being unable to work due to a disability. She encouraged the council to consider the broader benefits of short-term rentals for homeowners facing financial hardship and expressed her support for the ordinance. Brad Goldberg, discussed the proposed development of approximately 90 acres within to commitment development the team's He area. Broadmoor expressed delivering a high-quality project and praised City staff for their professionalism and collaboration throughout the infrastructure agreement process. Mr. Goldberg stated that the team values Pasco's commitment to quality development and offered to answer any questions from the council. The Mayor noted that discussion of the infrastructure agreement would occur later in the meting and requested that Mr. Goldberg leave his contact information in case follow-up questions arose. Rich Sexton, spoke in support of the proposed short-term rental ordinance. Drawing on his experience renting vacation homes in multiple states and countries, he stated that short-term rental guests generally seek to be respectful neighbors and avoid causing disturbances. He expressed his belief that responsible operators, guests, and rental platforms share an interest in maintaining properties and neighborhoods, and he encouraged the council to support the ordinance. proposed She development. casino the Razo, opposition in spoke Katelyn to expressed concern that increased access to gambling could contribute to gambling addiction, financial hardship, and negative impacts on families and the community. Ms. investments local support that prioritize Razo council the encouraged to businesses, quality jobs, education, affordable housing, and family-friendly spaces, and urged consideration of the long-term impacts on the community. Marcie Torres, addressed the council regarding concerns she had previously raised involving alleged harassment, public statements, and conduct by Mr. Perales and Mr. David Cortina. She alleged that false information about her and her family had been shared and child, minor her on about the concern expressed publicly, impact requested that the city hold those accountable. Ms. Torres also raised concerns regarding alleged misconduct related to grant application assistance for downtown businesses and questioned the city's support of certain individuals during a recent 4th of July parade. LaWanda Hatch, spoke regarding concerns about the proposed casino development and recent community events. She expressed appreciation for Pasco's family-oriented character and support for local small businesses, stating that she did not believe a casino aligned with the community's values. Ms. Hatch also raised concerns regarding a recent law enforcement matter involving an individual's arrest and alleged release of private information, requesting that the matter be investigated and emphasizing the importance of constitutional rights, due process, and proper procedures. Page 4 of 13Page 10 of 194 Robert "BJ" Olson, spoke in support of the proposed short-term rental ordinance on behalf of Bob Mangione. He expressed support for a balanced approach that provides additional lodging options for visitors, temporary workers, business travelers, and families while establishing accountability and safety standards. Mr. Olsen stated that short-term rentals serve a different market than traditional hotels and can help keep visitors and their spending within the community. He also emphasized the importance of property rights while noting that responsible regulations, including licensing, permits, insurance, and neighborhood protections, provide an appropriate balance between economic opportunity and community concerns. Marie Redout, addressed the council regarding concerns related to family court matters and the preservation of records. She requested that records and information related to certain cases be maintained and reviewed, and expressed concerns about court decisions involving children, protective orders, and restrictions she believes were made without sufficient evidence. Ms. Redout stated that additional families have asked her to share their experiences and emphasized the importance of ensuring concerns are documented and addressed appropriately. She also raised concerns remain should she information believed release the regarding of confidential. Iraseme Rojas, spoke in opposition to the proposed casino development. She shared her personal experience growing up in the Tri-Cities and witnessing the impacts of a family member's gambling addiction, including financial hardship and strain on family relationships. Ms. Rojas expressed concern that expanding casino access could negatively affect local families and encourage the council to carefully consider the long-term community impacts before moving forward. Amy Snow, addressed the council regarding concerns about her experiences with the Pasco Police Department and the justice system. She stated that when reporting incidents were concerns their felt family she and assistance, seeking and her dismissed and that their safety concerns were not adequately addressed. Ms. Snow shared examples involving a reported break-in and expressed concerns about feeling unsupported requested greater She requesting police when assistance. understanding and accountability to ensure community members feel heard, protected, and supported when seeking help. Tim Sanchez, spoke in support of the proposed short-term rental ordinance on behalf of Bob Mangione and his family. He shared his positive experiences using short-term rentals the and options, pet-friendly affordability, their travel, family for noting relationships formed with responsible hosts. Mr. Sanchez stated that short-term rentals families, and individuals for valuable supplemental provide can income including members of his own community. He shared his support for Bob Mangione and emphasized the importance of allowing responsible short-term rental opportunities to help community members facing financial challenges. Doug Gradin, addressed council regarding safety concerns at the intersection of Highway 12 and Tank Farm Road. Mr Gradin shared his experience as a motorcycle crash survivor at the intersection and urged the council to advocate for improvements Page 5 of 13Page 11 of 194 to prevent future crashes. He expressed concerns about traffic conditions, including truck movements and limited acceleration space, and requested that safety council the that noted Mayor improvements delayed. be not hadThe already approved sending a letter requesting state action regarding the intersection and acknowledged the importance of addressing safety concerns at area intersections. Mitch Snow, addressed council regarding concerns about receiving equal protection and treatment under the law. He shared his background as a medically discharged U.S. Army veteran and described his military service and injuries sustained during his time in service. Mr. Snow expressed that he is seeking fair and equal treatment and raised concerns regarding recent personal matters and interactions with local government. The Mayor thanked Mr. Snow for his comments, noted the limited public comment time, and offered to meet with him separately to discuss his concerns further. Celeste Francis Carlson Stanley, addressed the council regarding concerns related to fireworks and ethics issues. She expressed concerns about potential conflicts of interest involving councilmembers who have sold fireworks and requested that those individuals recuse themselves from discussion related to fireworks. Ms. Stanley also raised concerns regarding alleged harassment, retaliation, and disclosure of personal information, and stated that she has legal counsel addressing those matters. Matthew Ducat, spoke in support of the proposed short-term rental ordinance on behalf of the Mangione family. He stated that he believes the opportunity would benefit the Mangione family and the broader community, including families and seniors who may benefit from additional income opportunities. Laurie Thompson, addressed the council regarding several community issues. She expressed opposition to a proposed casino development, citing concerns about the impact of gambling on families and the community. Ms. Thompson also urged the council to address ongoing concerns at Tri-Cities Animal Services, requesting information regarding the appointment of a new police chief, and expressed frustration with illegal fireworks during the Fourth of July. She encouraged the city to seek additional assistance, including from the State of Washington, to improve enforcement and reduce the impacts of illegal fireworks on the community. Mayor Grimm called for public comments two (2) times and no one came forward to speak. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Councilmember Cotta reported attending a meeting with the Tri-City Regional Chamber, where recommendations related to addressing homelessness were discussed. He also commented on participating in the Fourth of July parade celebrating the nation's 250th anniversary and noted that interviews for boards and commissions were scheduled for Wednesday. Page 6 of 13Page 12 of 194 Councilmember Hernandez reported participating in the Fourth of July parade and serving as a judge for the Mayor's Choice award at the community car show. He noted to opportunity appreciated and the were events both that enjoyable participate in the community celebrations. Councilmember Perales reported attending a meeting with the Tri-City Regional Chamber, discussed. also He were where and homelessness development hosted a community meeting regarding Tri-Cities Animal Services, attended by approximately 40 residents, and noted that additional meetings are planned. Councilmember Perales assisted the Fourth of July parade and thanked Captain Parramore for promptly addressing a resident's concerns regarding a homeless encampment. During his report, he commented on the importance of respectful public participation, encouraged factual discussion during public comment, and responded to statements made during the meeting regarding allegations directed toward elected officials. A point of order was raised during his remarks, after which he concluded his report. Mayor Pro Tem Milne thanked City staff for organizing the meeting with the Tri- City Regional Chamber, noting the productive discussion and expressing interest in community also He other organizations. meetings similar holding with commented on the success of the Fourth of July parade, thanking attendees, fellow councilmembers, and community members for their participation. Mayor Grimm thanked the council for covering his responsibilities during his illness and brief absence. Councilmember Figueroa reported that the Fourth of July parade and Gesa Stadium fireworks celebration were successful community events that brought residents together. He also recognized Parks and Recreation staff for providing alternative activities, including a movie option at Fairchild Cinemas, for residents seeking to avoid fireworks. Councilmember Figueroa expressed appreciation for staff's while the of needs community the accommodate to efforts diverse supporting family-friendly events. Councilmember Campos highlighted the recent meeting with the Pasco Chamber, expressing appreciation for the opportunity to engage with local business leaders and community strengthening to council's the emphasizing commitment partnerships. He also commented on the success of the Fourth of July parade, noting the strong community participation and celebrating the opportunity to recognize both the nation and the Pasco community. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales to push item 9 (b) Ordinance No. 4847 - Regulations for Short-Term Rentals next in the agenda. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Page 7 of 13Page 13 of 194 Cotta, Councilmember Hernandez, and Councilmember Campos Ordinance No. 4847 - Regulations for Short-Term Rentals Deputy City Manager Sigdel presented Ordinance No. 4847, establishing a regulatory framework for short-term rentals as directed by the City Council. The proposed license business city obtain a operators requires ordinance to endorsement and a short-term rental permit for each property, designate a local representative available to respond to complaints, maintain liability insurance as required by state law, and complete an annual safety self-certification in lieu of city inspections. The ordinance also prohibits event type uses, such as weddings and large gatherings, and applies to all short-term rental operators regardless of booking platform. Staff noted that permit fees would be developed later in the year, with the ordinance proposed to take effect January 1, 2027. Additional land use code amendments will be brought forward through the Comprehensive Plan update process to clarify where short-term rentals are permitted. Councilmembers discussed permit requirements, complaint response procedures, self-certification, coordination with rental platforms, parking, and neighborhood concerns. Staff clarified the city would enforce its own municipal code but would not enforce homeowners' association (HOA) regulations, which remain private civil matters. Councilmembers expressed support for maintaining a simple, limited regulatory framework focused on safety, accountability, and property rights while addressing neighborhood concerns. Overall, councilmembers indicated support for the ordinance, stating it provides an appropriate balance between short-term rentals and ensuring responsible operation. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales to adopt Ordinance No. 4847, creating Chapter 5.120 Short-Term Rentals of the Pasco Municipal Code establishing a clear regulatory framework for short- term rentals within the City of Pasco, with an effective date of January 1, 2027. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO Essential Public Facilities (EPF), Secure Community Transition Facilities (SCTFs), and Less Restrictive Alternative (LRA) Housing Code Update The City Attorney explained that, based on previous Council direction, staff and Page 8 of 13Page 14 of 194 legal counsel are revising the proposed ordinance to incorporate additional changes, including evaluating an overlay district that would limit certain facilities to industrial areas. Because this work requires further analysis and coordination with the comprehensive plan and zoning code updates, the ordinance is not yet ready for consideration. The City Attorney advised that the public hearing scheduled for the current draft ordinance was no longer necessary, as a revised ordinance will be presented at a future public hearing to allow for public comment. He also noted that the existing moratorium on accepting applications is set to expire in August and recommended extending it for an additional six months to allow staff time to complete the ordinance revisions while maintaining the current restrictions. Councilmembers asked clarifying questions regarding the public hearing process and confirmed that public input received would help inform the revised ordinance. Additional discussion reiterated Council's previous direction to evaluate limiting less address to order areas in to housing alternative restrictive industrial community concerns while complying with state requirements. The Mayor then opened the public hearing for public testimony on the matter. LaWanda location a of potential less about concern expressed Hatch, the restrictive alternative housing facility near her rural neighborhood. She stated that the area is a quiet, family-oriented farming community and raised questions about public safety, emergency response times, facility security measures, and the potential impacts on nearby residents. She also requested additional information regarding how the facility would operate, including security, resident movement, and traffic impacts. Stephen Bauman thanked the council and staff for their work on the issue of less restrictive housing for sexually violent predators. He expressed concerns about the potential placement of such housing in the community. referencing a proposed facility in Kennewick with five occupants and citing a high recidivism rate for sexually violent predators. Stephen stated that the County is also discussing the issue and expressed appreciation for the Council's attention to the matter, emphasizing and collaboration continued community importance the of discussion. Mayor Grimm called for public comments two (2) times and no one came forward to speak. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Resolution Nos. 4759, 4760, 4761 - Surplus of City Properties (112042336, 112042245, 112034263 & 112041282) Staff presented a proposal to declare three city-owned downtown properties surplus purposes. municipal for needed are no they because The longer properties include 122–124 S. 4th Avenue, 321 W. Lewis Street, and 414 W. Page 9 of 13Page 15 of 194 Columbia Street. Staff explained each property's acquisition history and stated that surplus designation would allow the City to market the sites through a Request for Proposals (RFP) process to encourage redevelopment aligned with the Council's goals for economic growth and downtown revitalization. Proposals will be evaluated based on factors beyond purchase price, including proposed use, community benefit, and the applicant's experience and financial capacity. During Council discussion, members expressed interest in including a Council representative on the proposal evaluation committee, with Councilmember Hernandez volunteering to serve. Council also discussed the former Thunderbird site, noting that while it had previously been considered for a parking lot, increased costs due to new electric vehicle charging requirements and the potential private seek first to commercial prompted redevelopment for staff development proposals. Staff confirmed that the evaluation committee will make recommendations, with the final decision remaining with the full Council. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales to approve Resolution No 4759., approving the surplus of certain City-owned real property located along Lewis Street, Parcel No. 112034263. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales to approve Resolution No. 4760, approving the surplus of certain City-owned real 112042236 Nos. Parcel Avenue, and along located property 4th 112042245. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Cotta to approve Resolution No. 4761, approving the surplus of certain City-owned real property located along Columbia Street, Parcel No. 112041282. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos Resolution No. 4763 Regarding State and Local Personal Income Taxes Page 10 of 13Page 16 of 194 Staff presented a resolution expressing the City Council's opposition to a state income tax and, at Council's previous direction, also brought forward a previously drafted ordinance related to the issue. Councilmembers discussed the resolution and ordinance, with several expressing support for both as a way to state the City's position and require future Council action before any local income tax could be considered. The City Attorney advised that while an ordinance could be adopted, it would be largely symbolic because it would not legally bind future councils and could be repealed if a future council chose to pursue such a tax. During discussion, Councilmember Figueroa stated he supported the resolution but emphasized the importance of continuing conversations about tax fairness. He noted concerns about Washington's tax structure disproportionately impacting lower- and middle-income households and encouraged future discussions on creating a more equitable tax system while acknowledging that the resolution itself would not address those broader issues. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Perales to approve Resolution No. 4763 expressing the City of Pasco's opposition to state and local personal income taxes in Washington State. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos NEW BUSINESS Presentation - Confederated Tribes of the Colville Reservation Pasco Economic Development Project Update Cody and Council Business Chairman, Erickson, Jarred-Michael Colville Desautel, Executive Director, Confederated Tribes of the Colville Reservation will provide an informational presentation on the history, vision, and current status of the Pasco Economic Development Project. Representatives of the Confederated Tribes of the Colville Reservation provided an update on their proposed Pasco economic development project, including the planned casino and hotel development. They explained that progress has been delayed due to the federal fee-to-trust approval process and changes in the federal administration but emphasized their continued commitment to the project. The of economic creating goals presentation the highlighted project's opportunities, generating revenue to support tribal services, preserving tribal culture, creating an estimated 2,000 jobs, and fostering partnerships with the City of Pasco and other local agencies. Tribal representatives also discussed existing agreements and related to municipal services, public safety, infrastructure, Page 11 of 13Page 17 of 194 community investment, including provisions to share gaming revenues with local communities. Councilmembers thanked the tribe for the update and expressed appreciation for its longstanding partnership with the City. Discussion included the project's federal approval process, relationships with neighboring tribes, potential economic benefits, and ongoing communication with the City. Councilmembers also raised questions and concerns regarding traffic, public safety, infrastructure costs, social impacts associated with gambling, and ensuring adequate mitigation measures and community investment. Tribal representatives stated they remain committed to working collaboratively with the City, providing future project updates, and addressing community concerns as the project moves through the federal review process. MISCELLANEOUS DISCUSSION Agreement – Harris Road Realignment Agreement with VWA-Pasco, LLC, ("Visconsi") for Broadmoor Development Staff presented a preview of a proposed development agreement with Visconsi Development Group for the Broadmoor area, noting that the item will return for Council action at the next regular meeting. The agreement outlines the City's commitment to relocate Harris Road to improve long-term traffic circulation and support the area's overall transportation plan. The project is eligible for funding through the previously approved transportation impact fee (TIF) program, with the developer paying its proportional share of the costs. The agreement also includes a cost-sharing provision for construction cost overruns to reduce the City's financial risk. Councilmembers did not raise questions during the presentation. The Mayor expressed support for the project, noting that the development is expected to generate future City revenue and attract businesses that residents have identified as desired additions to the community. City Manager's Report The City Manager provided updates on recent City activities, including Fourth of July events, thanking Police, Fire, and Public Information staff for their efforts in public safety, education, and community outreach. He highlighted strong attendance at holiday events, continued high usage at the Pasco Aquatic Center, upcoming community activities such as Movies on the Lawn, National Night Out, Business Watch, and Coffee with a Cop, and noted ongoing improvements at the aquatic facility to address operational and mechanical issues. During Council discussion, members requested additional fireworks enforcement Page 12 of 13Page 18 of 194 data and discussed concerns regarding the use of illegal fireworks, increased calls for service, and community expectations for enforcement. Councilmembers emphasized the importance of balancing education and enforcement while recognizing the significant workload placed on police and fire personnel during the holiday. The Mayor concluded by sharing positive comments from visitors who praised Pasco's hospitality and Fourth of July celebrations, thanking City staff and residents for fostering a welcoming community. They Mayor called for a 5 minute recess at 9:42pm before they begin Executive Session at 9:47pm. EXECUTIVE SESSION Council adjourned into Executive Session at 9:47 PM for 30 minutes returning at 10:17 PM to discuss with legal counsel about current or potential litigation per RCW 42.30.110(1)(i) with the City Manager, Deputy City Manager, and City Attorney. At 10:17 PM Mayor Grimm announced that the Executive Session would continue for another 15 minutes or until 10:33 PM. At 10:33 PM Mayor Grimm announced that the Executive Session would continue for another 10 minutes or until 10:44 PM. Mayor Grimm called the meeting back to order at 10:44 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 10:44 PM. PASSED and APPROVED on _______________________. APPROVED: ATTEST: David Milne, Mayor Gabriela Sanchez, City Clerk Page 13 of 13Page 19 of 194 AGENDA REPORT FOR: City Council July 10, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Kevin Hebdon, Director Finance SUBJECT: Bills and Communications - Approving Claims in the Total Amount of $8,281,420.02 I. ATTACHMENT(S): Accounts Payable 06.18.26 to 07.08.26 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $8,281,420.02 ($3,146,521.03 in Check Nos. 279052 - 279470; $3,799,122.30 in Electronic Transfer Nos. 853586 - 853587, 853597 - 853860; $13,487.80 in Check Nos. 55352 - 55390; $1,322,288.89 in Electronic Transfer Nos. 30244815 - 30245560). III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 20 of 194 REPORTING PERIOD: July 20, 2026 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 279052 - 279470 55352 - 55390 Total Check Amount $3,146,521.03 $13,487.80 Total Checks 3,160,008.83$ Electronic Transfer Numbers 853586 - 853587 30244815 - 30245560 853597 - 853860 Total EFT Amount $3,799,122.30 $1,322,288.89 $0.00 $0.00 Total EFTs 5,121,411.19$ Grand Total 8,281,420.02$ Councilmember B 100 1,020,873.26 110 104,053.89 140 2,000.00 142 185,226.58 145 2,042.62 150 193,204.52 160 5,886.81 165 9,778.97 168 46,728.52 169 903.00 170 607.06 180 2,162.94 185 2,108.15 188 85,929.06 190 144.82 194 39,246.80 195 1,343.71 196 HOTEL/ MOTEL EXCISE TAX 10,000.00 367 444,662.83 410 3,284,136.36 510 30,990.48 515 26.25 520 464,871.67 630 2,308.43 690 2,342,183.29 GRAND TOTAL ALL FUNDS:8,281,420.02$ June 18 2026 to July 8 2026 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved The City Council City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim. Harold Stewart, City Manager Kevin Hebdon, Finance Manager We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 20th day of July 2026 that the merchandise or services hereinafter specified have been received and are approved for payment: C.D. BLOCK GRANT HOME CONSORTIUM GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE Councilmember A SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET MULTI-MODAL FACILITY RIVERSHORE TRAIL & MARINA MAIN SPECIAL ASSESSMENT LODGING REVOLVING ABATEMENT CEMETERY ATHLETIC PROGRAMS ANIMAL CONTROL AQUATIC CENTER - PPFD SENIOR CENTER OPERATING UTILITY, WATER/ SEWER EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL MEDICAL/ DENTAL/ VISION INSURANCE ECONOMIC DEVELOPMENT STADIUM/ CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION FLEX PAYROLL CLEARING Page 21 of 194 AGENDA REPORT FOR: City Council June 23, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Resolution No. 4764 - Washington State Department of Transportation (WSDOT) Detour Agreement I. ATTACHMENT(S): Resolution 4764 Agency Haul Road/Detour Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:the authorizing 4764, No. I approve to move City Resolution Manager to execute Agency Haul Road/Detour Agreement with Washington State Department of Transportation for their US 395 Kartchner St I/C NB Ramp Terminal Improvements project. III. FISCAL IMPACT: N/A - This is a WSDOT project, partially funded by proportionate shares collected from developers. IV. HISTORY AND FACTS BRIEF: Background A temporary detour is required to construct improvements to the Kartchner St. Interchange (in the vicinity of the NB Ramp Terminal). This project is led by Washington State Department of Transportation (WSDOT). The US 395 Kartchner St. I/C NB Ramp Terminal Improvements project includes addition of a is and St Kartchner at roundabout terminal ramp this at intersection anticipated to be constructed in 2026, with construction starting as early as August. The detour is required for construction of portions of the roundabout at the intersection of Kartchner St. and the US 395 northbound ramp terminal. This project is partially funded by developer's proportionate share contributions, which were transferred from the City to WSDOT in May of 2025, for a total Page 22 of 194 contribution of $218,280. Total estimated project cost is approximately $1.65 million. The project footprint is all within WSDOT jurisdiction with the exception of the temporary detour, as proposed in the agreement, to maintain access to local businesses through the use of segments of city owned streets. The Detour will utilize the following city streets: Kartchner St., Capitol Ave, Hillsboro St., and Commercial Ave during construction of the project. The proposed detour is anticipated to take approximately 15 working days (3 weeks) based on WSDOT's scheduling estimation. The proposed detour agreement identifies WSDOT being responsible for maintenance and repairs of City streets utilized as part of the detour when specifically attributed to the project use. WSDOT will be responsible for ensuring those streets are restored to the baseline condition as part of the agreement. Baseline will be established via a pre-construction inspection. Impact (other than fiscal) As with most construction detours, there is a temporary inconvenience and minor delays in travel time introduced in order to get around the work zone. Since WSDOT will be responsible for ensuring the pavement and striping conditions are returned to baseline conditions on City streets associated with the detour, additional impact may include repair work occurring on those City streets after the improvements at the interchange ramp are completed. This work may introduce additional temporary traffic control setups, including another temporary short-term detour, as needed. This work mitigates any long-lasting impacts to the local network. The ultimate benefit of an improved intersection, with a focus on addressing safety and congestion at this location outweighs the temporary inconvenience of one-time construction. V. DISCUSSION: Recommendation This item was presented to Council at the July 13, 2026 Workshop as a discussion item. Staff recommends approval of the Agency Haul Road/Detour Agreement with WSDOT. Constraints WSDOT's project is getting close to construction phase, and the project will be Page 23 of 194 constructed in 2026. It is typical to have temporary traffic control and/or detours when converting existing intersections into roundabouts. Next Steps After approval and execution of the agreement, staff will continue coordination with WSDOT regarding to schedule and timing of this detour taking place. Alternatives The Council may choose to deny approval of the agreement. In that case, WSDOT would consider a reconfiguration of the traffic control plan, resulting in bigger impacts to traffic at this intersection during construction. Page 24 of 194 Resolution – WSDOT Haul Road/Detour ILA - 1 Version 1.9.26 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGENCY HAUL ROAD/DETOUR AGREEMENT BETWEEN WASHINGTON STATE DEPARTMENT OF TRANSPORTATION (WSDOT) AND THE CITY OF PASCO. WHEREAS, WSDOT is administering a project at US 395/Kartchner Street interchange northbound ramp terminal; and WHEREAS, the project includes construction of a new roundabout at the existing intersection of Kartchner Street and Commercial Avenue, which is currently a two-way stop controlled intersection; and WHEREAS, the footprint of the project is entirely within WSDOT jurisdiction; and WHEREAS, construction of the project requires a temporary detour of traffic to provide access to the local businesses in this vicinity; and WHEREAS, the proposed detour utilizes segments of City streets, including Capitol Avenue, Hillsboro Street, Commercial Avenue, and Kartchner Street; and WHEREAS, WSDOT shall be responsible only for the maintenance and repairs of city’s roads specifically attributable to the project use and those will be restored to their Baseline Condition, which is established prior to starting the project construction; and WHEREAS, of due after Pasco, Washington, has City the of Council City the consideration, determined that it is in the best interest of the City of Pasco to enter into the Agency Haul Road/Detour Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the Agency Haul Road/Detour Agreement between WSDOT and the City of Pasco; a copy of which is attached hereto and incorporated herein by reference as Exhibit 1; and Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute said Agreement on behalf of the City of Pasco. Be It Further Resolved, that this Resolution shall take effect immediately. Page 25 of 194 Resolution – WSDOT Haul Road/Detour ILA - 2 Version 1.9.26 PASSED by the City Council of the City of Pasco, Washington, on this ____ day of ________________, 20__. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 26 of 194 Agency Haul Road/Detour Agreement Agency and Address Agreement Number State Route Number Control Section Number Section / Location Region Intended Use (Haul Road or Detour Road) Vehicle Restrictions Description of Roads or Streets This Agreement is between the Washington State Department of Transportation (WSDOT) and the above-named governmental entity (Agency) hereinafter referred to individually as the Party and collectively as the Parties. Recitals 1. WSDOT is planning the construction or improvement of a section of state highway as shown above; 2. WSDOT plans to use the Agency roads or streets described above and as further detailed in red on the attached Exhibit “A” for detour routes or for hauling purposes during construction of the project, and 3. It is anticipated that use of the Agency’s roads or streets for such purposes will result in the need for additional maintenance work on the roads or streets, the cost of which should be borne by WSDOT. Now Therefore, pursuant to chapter RCW 47.28.140 and in consideration of the terms, conditions, and performances contained herein, the recitals as stated above which are incorporated and made a part hereof, and any Exhibits attached hereto, it is mutually agreed as follows: 1. PURPOSE 1.1 The Agency hereby agrees to WSDOT’s use of the roads or streets covered by this Agreement subject to the conditions contained herein. 1.2 Immediately prior to the beginning of WSDOT’s use of the roads or streets, the Parties shall make a joint condition inspection. WSDOT shall prepare a “Memorandum” of the existing condition of said roads or streets, attached hereto as Exhibit B. The Memorandum shall include a statement of the extent and frequency of routine maintenance operations normally carried out by the Agency, shall contain an explanation of any repair or maintenance required prior to WSDOT’s use, and may include photographs showing condition of the existing roadway. The Memorandum shall establish the “Baseline Condition” of the roads or streets that are the subject of this Agreement. 1.3 In the event that the Memorandum establishes the need for the repair or maintenance of the roads or streets prior to WSDOT’s use, the Parties shall prepare an addendum to the Memorandum that provides a detailed description of work to be performed and division of responsibilities for performance of the work. Any repair or maintenance of the roads and streets prior to WSDOT’s use shall be documented in the addendum to the Memorandum. 1.4 The Agency agrees not to restrict the legal size, weight, or speed of vehicles using the roads or streets covered by this Agreement except as stated above under Vehicle Restrictions. DOT Form 224-014 Revised 09/2023 Page 1 of 4 City of Pasco 525 N. 3rd Avenue Pasco, WA 99301 HR5-1004 US 395 1101 US 395/Kartchner Street interchange northbound ramp terminal at milepost 23.69 South Central Region Detour Road N/A The work proposed under this Agreement is to provide access to the local businesses on North Commercial Ave. through the use of Kartchner St., North Capitol Ave., East Hillsboro St., and North Commercial Ave. Page 27 of 194 1.5 It is expressly understood that WSDOT shall be responsible only for the maintenance and repairs of the Local  streets covered by this Agreement the Parties will conduct a joint inspection to identify any damage to the roads or streets occasioned by WSDOT’s use thereof. The Baseline Condition as established in the Memorandum, and any addendum thereto, will be used for purposes of comparison. The Parties shall document the need for repair or maintenance of the roads or streets based on WSDOT’s use and shall determine the cost of the required maintenance and repair to restore the roads or streets to the Baseline Condition. 1.6 WSDOT shall reimburse the Agency for the actual direct and related indirect costs of the required maintenance and repairs to restore the roads or streets to the Baseline Condition or WSDOT shall complete the repair to the satisfaction of the Agency. 1.7 When indicated by a check mark in the box the Agency is a county, WSDOT and the Agency acknowledge that  2. PERIOD OF PERFORMANCE Subject to its other provisions, the period of performance of this Agreement shall commence on and be completed on unless terminated sooner as provided in this Agreement or extended through a properly executed amendment. 3. LEGAL RELATIONS   any other Party. No joint venture or partnership is formed as a result of this Agreement. 3.2 The Parties shall be deemed independent contractors for all purposes, and the employees of the Parties or any of their contractors, subcontractors, consultants, and the employees thereof, shall not in any manner be deemed to be employees of the other Party. 4. INDEMNIFICATION 4.1 To the extent allowable under law, each Party to this Agreement will protect, defend, indemnify, and save harmless  such, from any and all costs, claims, judgments, and/or awards of damages (both to persons and property), arising out of, or in any way resulting from, each Party’s negligent acts or omissions with respect to the provisions of this Agreement. Neither Party will be required to indemnify, defend, or save harmless the other Party if the claim, suit, or action for injuries, death, or damages (both to persons and property) is caused by the sole negligence of the other  or employees, and/or involve those actions covered by RCW 4.24.115, the indemnity provisions provided herein  employees. 4.2 The Parties agree that their obligations under this section extend to any claim, demand, and/or cause of action  mutual negotiation, hereby waive, with respect to each other only, any immunity that would otherwise be available against such claims under the Industrial Insurance provisions of Title 51 RCW.   5. DISPUTE RESOLUTION 5.1 The Parties shall work collaboratively to resolve disputes and issues arising out of, or related to, this Agreement. Disagreements shall be resolved promptly and at the lowest level of hierarchy. To this end, following the dispute    of or related to this Agreement. The representatives shall communicate regularly to discuss the status of the  the performance of this Agreement and the resolution of any disputes or issues arising during the term of this Agreement. DOT Form 224-014 Revised 09/2023 Page 2 of 4 August 3rd, 2026 October 31st, 2026 Page 28 of 194 5.1.2. A Party’s representative shall notify the other Party in writing, with email being acceptable, of any dispute or issue that they believe may require formal resolution. The representatives shall meet within five (5) working days of receiving the written notice and attempt to resolve the dispute. 5.1.3. In the event the representatives cannot resolve the dispute or issue, the Agency Public Works Director and WSDOT’s Region Administrator, or their respective designees, shall meet and engage in good faith negotiations to resolve the dispute. 5.1.4. In the event the Agency and WSDOT cannot resolve the dispute or issue, the Agency and WSDOT shall each appoint a member to a Dispute Board. These two members shall then select a third member not affiliated with either Party. The three-member board shall conduct a dispute resolution hearing that shall be informal and unrecorded. All expenses for the third member of the Dispute Board shall be shared equally by both Parties; however, each Party shall be responsible for its own costs and fees. 6. RECORDS AND AUDIT All records related to the Work performed under this Agreement shall be held and kept available for inspection and audit for a period of six (6) years from the date of termination of this Agreement or any final payment authorized under this Agreement, whichever is later. Each Party shall have full access to and right to examine said records, during normal business hours and as often as it deems necessary. In the event of litigation or claim arising from the performance of this Agreement, the Agency and WSDOT agree to maintain the records and accounts until such litigation, appeal or claims are finally resolved. This section shall survive the termination of this Agreement. 7. TERMINATION 7.1 This Agreement may be terminated, without penalty or further liability as follows: 7.1.1 Termination for Convenience This Agreement may be terminated for convenience by WSDOT at any time. The notice of intent to terminate for convenience shall be issued in writing no less than thirty (30) working days in advance of termination. WSDOT shall not be liable to the Agency for any direct, indirect, or consequential damages arising solely from termination of this Agreement. 7.1.2 Termination for Cause This Agreement may be terminated for cause by either Party if the other Party does not fulfill in a timely and proper manner its obligations under this Agreement, or if the other Party violates any of the terms and conditions of this Agreement. The notice of intent to terminate for cause shall be issued by a Party in writing and the other Party shall have the opportunity to correct the violation or failure within fifteen (15) working days of the date of the notice. If the failure or violation is not corrected within the time allowed, this Agreement will automatically terminate. 7.1.3 Termination for Withdrawal of Authority This Agreement may be terminated by WSDOT in the event that WSDOT’s authority to perform any of its duties is withdrawn, reduced, or limited in any way after the commencement of this Agreement. The notice of intent to terminate for withdrawal of authority shall be issued by WSDOT in writing no less than seven (7) calendar days in advance of termination. No penalty shall accrue to WSDOT in the event termination under this section is exercised. This section shall not be construed to permit WSDOT to terminate this Agreement in order to acquire similar services from a third-party. 7.1.4 Termination for Non-Allocation of Funds This Agreement may be terminated by either Party if insufficient funds are allocated or appropriated to the Party to continue its performance of this Agreement in any future period. The notice of intent to terminate for non-allocation of funds shall be issued in writing no less than seven (7) calendar days in advance of termination. 7.2 Any termination of this Agreement shall not prejudice any rights or obligations accrued to the Parties prior to termination. 8. GENERAL 8.1 Assurances. The Parties agree that all activity pursuant to this Agreement shall be in accordance with all applicable federal, State, and local laws, rules, and regulations as they currently exist or as amended. DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 Page 3 of 4 Page 29 of 194 8.2 Interpretation. This Agreement shall be interpreted in accordance with the laws of the state of Washington. The titles to paragraphs and sections of this Agreement are for convenience only and shall have no effect on the construction or interpretation of any part hereof. 8.3 Amendments. This Agreement may be amended only by the mutual written agreement of the Parties executed by personnel authorized to bind each of the Parties. 8.4 Waiver. A failure by a Party to exercise its rights under this Agreement shall not preclude that Party from the subsequent exercise of such rights and shall not constitute a waiver of any other rights under this Agreement unless stated to be such in writing and signed by an authorized representative of the waiving Party and attached to the original Agreement. 8.5 All Writings Contained Herein. This Agreement contains all of the terms and conditions agreed upon by the Parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind the Parties. 8.6 Venue. The Venue of any action brought under this Agreement involving WSDOT shall be in Superior Court for County, State of Washington. 8.7 Severability. If any term or condition of this Agreement is held invalid, such invalidity shall not affect the validity of the other terms or conditions of this Agreement. 8.8 Authority to Bind. The signatories to this Agreement represent that they have the authority to bind their respective organizations to this Agreement. 9. COUNTERPARTS This Agreement may be executed in counterparts or in duplicate originals. Each counterpart or each duplicate shall be deemed an original copy of this Agreement signed by each Party, for all purposes. Electronic signatures or signatures transmitted via email in portable document format (“PDF”) may be used in place of original signatures on this Agreement. Each Party intends to be bound by its electronic or PDF signature on this Agreement and is aware that the other Party is relying on its electronic or PDF signature. In Witness Whereof, the parties hereto have executed this Agreement as of the party’s date signed last below. AGENCY By: Printed: Title: Date: WASHINGTON STATE DEPARTMENT OF TRANSPORTATION By: Printed: Title: Date: DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 DOT Form 224-014DOT Form 224-014 Revised 09/2023Revised 09/2023 Page 4 of 4 Page 30 of 194 HR5-1004 Exhibit A Sheet 1 of 2 AGREEMENT HR5-1004 CITY OF PASCO EXHIBIT “A” SPECIFICATIONS AND DETAILS The work proposed under this Agreement includes a detour to maintain access to local businesses through the use of Kartchner St., North Capitol Ave., East Hillsboro St., and North Commercial Ave. during the US 395/Kartchner St. I/C – Northbound ramp Terminal Improvements Project in the City of Pasco in Franklin County, Washington. Short Term Detour Route Details Portions of the intersection of Kartchner St. and the US 395 northbound ramp terminal will be closed, depending on the phase of construction, limiting specific movements and requiring motorists to follow the posted detour to access local businesses. The detour will consist of the use of Kartchner St. between the US 395 northbound ramp terminal and North Capitol Ave, the use of North Capitol Ave. between Kartchner St. and East Hillsboro St., the use of East Hillsboro St. between North Capitol Ave. and North Commercial Ave., and the use of North Commercial Ave. between East Hillsboro St. and Kartchner St. In accordance with Section 1.6 of the Agreement, pavement repairs will be made by WSDOT’s contractor once usage of the detour route has ceased and will be completed by the end of the contract. The City of Pasco will not seek reimbursement for repairs. Duration and Time Frame: 24 hours a day for approximately 15 days between July 2026 and September 2026. Notification: WSDOT will notify the City’s representative 10 days prior to implementation of the detour. City of Pasco Representative: Andrey Avetisyan 525 N. 3rd Avenue 2nd Floor Pasco, WA 99301 Office: 509-544-4131 avetisyana@pasco-wa.gov WSDOT Representative: Andres Mendoza, P.E. Construction Project Engineer 1655 Fowler Street Richland, WA 99352 Office: 509-222-2440 Andres.Mendoza@wsdot.wa.gov Page 31 of 194 DETOUR PLAN 28 28 B. WHITE NB RAMP TERMINAL IMPROVEMENTS KARTCHNER ST I/C US 395 A. MENDOZA DU1 26Y002 U. VARGAS U. VARGAS P. COOPER C O M M E R CI A L R A I N I E R A V E A V E J A S O N C A P I T O L A V E KARTCHNER ST HILLSBORO ST COMMERCIAL AVE CLOSED US 395 KARTCHNER ST I/C- DETOUR PLAN 395 A V E LEVEL TYPE 3 BARRICADE TEMPORARY SIGN LOCATION DETOUR ROUTE "PAVEMENT REPAIR EXCAVATION INC HAUL" AND "HMA FOR PAVEMENT REPAIR". BY THIS DETOUR ROUTE SHALL BE REPAIRED BY BID ITEMS 4. AS APPROVED BY THE PROJECT ENGINEER, DAMAGES TO THE ROADWAY CAUSED 3. THE DETOUR PLAN SHALL BE USED IN CONJUNCTION WITH CLASS A SIGN PLAN. 2. COVER SIGNS WHEN NOT ON USE. 1. ALL SIGNS ARE BLACK ON ORANGE UNLESS OTHERWISE DESIGNATED. NOTES: CLOSED ROAD RO D CLOSED LOCAL TRAFFIC ONLY NOT TO SCALE HILLSBORO ST FILE NAME TIME DATE PLOTTED BY DESIGNED BY ENTERED BY CHECKED BY PROJ. ENGR. REGIONAL ADM. REVISION DATE BY LOCATION NO.CONTRACT NO. JOB NUMBER NO. REGION STATE FED. AID PROJ. NO. WASH PLAN REF NO BilslaB 22-Jun-2026 2:13:18 PM XL6976_PS_DT_Sheet_AD01.dgn 10 SHEET OF SHEETS p w : / / p r o j e c t s t o r e . w s d o t . w a . g o v : W S D O T / D o c u m e n t s / S o u t h C e n t r a l / _ P r o j e c t s / 3 9 5 / 0 . 3 6 _ K a r t c h n e r S t - N B R a m p _ C O N N E C T / D e s i g n / _ C A D D / S h e e t s / 4 2 0 - D e t o u r P l a n / A D 0 1 / X L 6 9 7 6 _ P S _ D T _ S h e e t _ A D 0 1 . d g n c : \ u s e r s \ b i l s l a b \ p w _ w s d o t \ d 0 9 9 1 0 6 9 \ X L 6 9 7 6 _ P S _ D T _ S h e e t _ A D 0 1 . d g n W SD O T STAMP BOX STAMP BOX AD1- NOTE ADDED 6/22/2026 ZCB DETOUR DETOUR DETOUR DETOUR DETOUR DETOUR M4-9R 30" 24" 48" 30" R11-2 (B/W) M4-9 30" 24" M4-9R 30" 24" 60" 30" R11-3A (B/W) M4-9L 30" 24" M4-9L 30" 24" M4-9L 30" 24" (R/B/W) R3-2 24" 24" Pa g e 3 2 o f 1 9 4 HR5-1004 Exhibit B Page 1 of 2 AGREEMENT HR5-1004 EXHIBIT “B” JOINT INSPECTION MEMORANDUM This Memorandum is to document the baseline conditions of the Agency road(s) to be utilized as part of the detour. Project: US 395 Kartchner St. I/C NB Ramp Terminal Improvements Agency Road(s): Kartchner St., N. Capitol Ave., E. Hillsboro St., N. Commercial Ave. Date of Inspection(s): 5/28/2026 Existing Conditions (circle condition and identify any areas needing attention): Pavement Condition (including shoulders): Excellent Good Acceptable Cracking Pavement Condition Notes: N Capitol Ave: all paving joints are showing early signs of cracking. Southbound lane has a longitudinal crack about 3’ from fogline on wheelpath. E Hillsboro St: lots of alligator cracking and a few blowouts. N Commercial Ave: looks to be the same condition as N Capitol Ave, maybe a bit better (not as many joints). Kartchner St: has concrete lanes and acceptable asphalt shoulders adjacent to curb and gutter. See pictures. Striping Condition (circle condition and identify any areas needing attention): Excellent Good Acceptable Worn Striping Condition Notes: N Capitol Ave: striping is acceptable E Hillsboro St: has one non-existent stop bar WB at N Commercial Ave. No striping other than that. N Commercial Ave: stripping is worn but, visible mostly. Kartchner St: stripping is worn but, visible mostly. Signage Condition (circle condition and identify any areas needing attention): Page 33 of 194 HR5-1004 Exhibit B Page 2 of 2 Excellent Good Acceptable Damaged Signage Condition Notes: Street signs are all in and visible. Repairs: Repairs to be completed prior to detour implementation including but not limited to delineation, pavement repair, and clearing of obstructions (List below or indicate N/A): 1. Pasco has no plans of work until the fall, which will be crack sealing. 2. Pasco has requested that we Grind and Pave E Hillsboro St., and Crack Seal Kartchner, N Capitol Ave and, N Commercial Ave. prior to implementing the detour. WSDOT cannot commit to this request due to the limited funds of the project and the detoured traffic is associated with local traffic movements, not re-routing of highway traffic on the local road. WSDOT will repair all pavement that has deteriorated as a result of the extra vehicles on the detour route. WSDOT will work with the city on determining these areas following the usage of the detour. 3. 4. Routine Maintenance: Routine maintenance will be completed by WSDOT or its contractor in accordance with standard maintenance practices throughout the use of the detour. Page 34 of 194 AGENDA REPORT FOR: City Council July 9, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Gabriela Sanchez, City Clerk City Manager SUBJECT: Planning Commission Appointment I. ATTACHMENT(S): Virakpanyou, Sonny Application II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to appoint Sonny Virakpanyou to Position No. 1 (term expiration date 12/31/2027) to the Planning Commission. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The Planning Commission is composed of nine members; terms are for five years. The Commission meets on the third Thursday of each month at 6:30 p.m. The Planning Commission conducts workshop meetings and public hearings on land-use policy and development proposals and issues recommendations for the City Council. V. DISCUSSION: Following conduct of interviews on July 8, 2026, the Mayor has suggested the appointment be made as outlined in the motion above. Page 35 of 194 BOARD/COMMISSION APPLICATION Application Type: Pasco Public Facilities District Board Secondary Choices: Planning Commission Name Sonny Virakpanyou Address Phone Alternative Phone Email Address District of Residence: District 3 Registered Voter: No DEMOGRAPHIC INFORMATION Length of Residency 41 What gender do you identify with? Male Race or Ethnicity Asian / Cambodian GENERAL QUESTIONS: Employment Status Employed Employer Sonar Insights Present Employment CEO - Feb 2020 Educational Background Washington State University (Pullman) - BA International Business and Marketing Columbia Basin College (Pasco) - AA Business Administration / Marketing Reason for Applying I’ve called Pasco home since I was three years old, and it’s truly shaped who I am today. This community has given me lifelong friendships, a strong sense of family, and the foundation to build my business. Growing up and working here has allowed me to understand not just the city itself, but the people—what they value, what they need, and where they see opportunity. That perspective is something I carry with a lot of pride. Serving on the board commission feels like a natural way to give back to the place that has given me so much. I see real potential for Pasco to continue growing, innovating, and standing out as a leading city in Washington. I want to be part of helping guide that future—making thoughtful decisions that reflect our community and create even greater opportunities. Most importantly, I want to ensure others have access to the same, or better, opportunities that I’ve been fortunate enough to experience here. Relevant Experience Page 36 of 194 Sonny Virakpanyou I have had the privilege of serving on the Benton Franklin Workforce Development Council and recently the West Richland Chamber of Commerce. In these roles, I’ve contributed thoughtful insights shaped by both my perspective as a community member and my professional background in market research. I bring a data-driven approach to board service—helping translate community needs into actionable insights. By applying proven research methodologies, I support these organizations in gathering meaningful feedback, understanding public sentiment, and leveraging data to make informed, strategic decisions that better serve the community. Community Involvement In my role as CEO of Sonar Insights, I have led a wide range of community-centered projects spanning both for-profit and nonprofit sectors. My work is rooted in helping organizations better understand the communities they serve—translating insights into strategies that build engagement, strengthen brand identity, and drive sustainable growth. Most recently, I partnered on the Pasco Aquatic Center project, where we worked closely with community members to shape the facility’s brand, name, and identity. This effort informed not only the visual and experiential elements of the center, but also ensured it reflected the values and expectations of the community it serves. I have applied a similar approach with organizations such as Senior Life Services (now Generational Care), Columbia Industries (now Columbia Ability Alliance), 3 Rivers Community Foundation, Columbia Basin College, Kennewick School District, the Art Center Task Force, Energy Northwest and B5, among others. Through this work, I’ve been fortunate to play a meaningful role in strengthening the fabric of our community. Truly an blessing. Have you served on this board, commission, or committee in the past and if so, how many terms did you serve? Not applicable Do you have any financial or personal conflicts of interest that would interfere with your participation on this board/commission? No I am available to participate in the regularly scheduled board/commission meetings Yes DEMOGRAPHIC INFORMATION: Length of Residency: 41 Race or Ethnicity: Asian / Cambodian What gender do you identify with? Male Disibility: No APPLICATION AGREEMENT I agree that all of the information contained in my responses to the questions on this application are true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also understand that this application and supporting documents may be available for public inspection. Page 37 of 194 Sonny Virakpanyou ☒ I Agree Signature: Sonny Virakpanyou Page 38 of 194 AGENDA REPORT FOR: City Council July 9, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Gabriela Sanchez, City Clerk City Manager SUBJECT: LEOFF Disability Board Appointment I. ATTACHMENT(S): Christiansen, Jodi Application II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to appoint Jodi Christiansen to Position No. 3 (term expiration date 07/15/2028) to the LEOFF Disability Board. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The LEOFF Disability board is composed of five members, terms are for 2 years. The board meets on the Third Monday of each month at 6:30 p.m. body decision-making local the as serves board Disability LEOFF The responsible for administering disability and certain medical benefits for eligible LEOFF plan 1 law enforcement officers and firefighters in accordance with Washington State law. The board does not oversee retirement benefits, personnel matters, or department operations, its role is limited to determining eligibility for benefits authorized under RCW 41.26. V. DISCUSSION: Following conduct of interviews on July 8, 2026, the Mayor has suggested the appointment be made as outlined in the motion above. Page 39 of 194 BOARD/COMMISSION APPLICATION Application Type: LEOFF Disability Board Secondary Choices: Planning Commission Name Jodi Christiansen Address Phone Alternative Phone Email Address District of Residence: District 3 Registered Voter: Yes DEMOGRAPHIC INFORMATION Length of Residency 15 What gender do you identify with? Female Race or Ethnicity Caucasian GENERAL QUESTIONS: Employment Status Employed Employer RC Engineering & Construction Management Present Employment President - 11/2019 - Present Previous position was Operations Manager/Business Development Manager - 03/2017-10/2019 Project Manager - HukariAscendent - 02/2014 - 03/2017 Business Development Director - Excelsior Design - 07/2013 - 07/2014 Senior Project Administrator/Business Development - 06/2009 - 06/2013 Educational Background I have an AA in General Studies and a Business Certificate from the UW Foster School of Business in Consulting & Business Development. Reason for Applying I have been a resident of Pasco for over 15 years and have decided it is time to give back to my community. As a business owner in Richland and a homeowner in Pasco, I see the impacts of decisions being made, and I want to be more involved. My primary interest is the LEOFF Disability Board because I have a deep respect for the men and women who choose public safety as a profession. Two of my uncles spent their careers as firefighters on the Hanford Site, and my stepson served three seasons as a wildlands firefighter. That experience made personal what I already believed - these are the people who walk toward danger when everyone else walks away. They deserve systems that work for them when they need it most, and I want to participate in a meaningful way in supporting those individuals. Page 40 of 194 Jodi Christiansen Relevant Experience In my roles and career progression, I have learned all aspects of business. As President of RC Engineering & Construction Management, I oversee all operations for a woman-owned small business serving federal clients including the Department of Energy and the Army Corps of Engineers. As an employer, I have dealt with HR issues, workplace injuries, and employees on disability — experience that translates directly to understanding the rules and regulations that govern LEOFF claims. My work also requires making consequential decisions that affect people's livelihoods while handling sensitive information with strict confidentiality. I take that responsibility seriously, which is reflected in my active federal security clearance. I also serve as Vice President of the National Contract Management Association Columbia Basin Chapter, where I have gained additional experience in board governance and fiduciary responsibility. Community Involvement Over the years I have volunteered with several community organizations including Toys for Tots, Bikes for Tikes, and security for various events. Prior to moving to Pasco, I volunteered with Benton County Fire District 4 auxiliary, providing rehabilitation support to firefighters during large-scale responses — an experience that gave me direct insight into the physical demands and risks these men and women face on the job. Have you served on this board, commission, or committee in the past and if so, how many terms did you serve? No I haven't, but I would like to get more involved. Do you have any financial or personal conflicts of interest that would interfere with your participation on this board/commission? No I am available to participate in the regularly scheduled board/commission meetings Yes DEMOGRAPHIC INFORMATION: Length of Residency: 15 Race or Ethnicity: Caucasian What gender do you identify with? Female Disibility: N/A APPLICATION AGREEMENT I agree that all of the information contained in my responses to the questions on this application are true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also understand that this application and supporting documents may be available for public inspection. ☒ I Agree Signature: Jodi Christiansen Page 41 of 194 AGENDA REPORT FOR: City Council July 9, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Gabriela Sanchez, City Clerk City Manager SUBJECT: Pasco Public Facilities District Board Reappointment and Appointment I. ATTACHMENT(S): Gillespie, Marie Application Maloney, Craig Application Maloney, Craig Letter of Recommendation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to reappoint Marie Gillespie to Position No. 4 and appoint Craig Maloney to Position No. 5 to the Pasco Public Facilities District Board with both terms expiring on 07/15/2030. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The Pasco Public Facilities District (PPFD) Board is composed of five (5) members with staggering position terms, which are for four (4) years each. The Board oversees operation of the Pasco Public Facilities District. In this capacity, the PPFD is authorized by charter to acquire, construct, operate and maintain any qualified public facility. The PFD oversees payment of Pasco's share of a special state sales tax grant intended for "regional centers," in partnership with the Kennewick Public Facilities District for the Three Rivers Convention Center. Per RCW 35.57.010(3)(a)(ii), three of the five PPFD Board members must be appointed by the legislative body based on recommendations by a "local organization(s)". Page 42 of 194 Position Nos. 2, 3 and 5 require the applicant(s) a recommendation from a local organization. Mr. Maloney's application packet includes a letter of recommendation from the Pasco Chamber of Commerce supporting his appointment to the PPFD Board. V. DISCUSSION: Following conducts of interviews on July 8, 2026, the Mayor has suggested the re-appointment and appointment as outlined in the motion above. Page 43 of 194 BOARD/COMMISSION APPLICATION Application Type: Pasco Public Facilities District Board Name MARIE GILLESPIE Address Phone Alternative Phone Email Address District of Residence: District 2 Registered Voter: Yes DEMOGRAPHIC INFORMATION Length of Residency 24 What gender do you identify with? female Race or Ethnicity asian GENERAL QUESTIONS: Employment Status Employed Employer CENTRAL PLATEAU CLEANUP COMPANY Present Employment PROJECT MANAGER AT HANFORD SINCE 2000 Educational Background BS BIOENGINEERING MS ENVIRONMENTAL ENGINEERING Reason for Applying Current PPFDB member for the past 8 years (2 terms) Relevant Experience I have served on the PPFDB for 2 terms. I helped get the Pasco Aquatic Center funded by the sales tax, design and build the facility. Community Involvement See above. Have you served on this board, commission, or committee in the past and if so, how many terms did you serve? See above. Do you have any financial or personal conflicts of interest that would interfere with your participation on this board/commission? Page 44 of 194 MARIE GILLESPIE none I am available to participate in the regularly scheduled board/commission meetings Yes DEMOGRAPHIC INFORMATION: Length of Residency: 24 Race or Ethnicity: asian What gender do you identify with? female Disibility: none APPLICATION AGREEMENT I agree that all of the information contained in my responses to the questions on this application are true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also understand that this application and supporting documents may be available for public inspection. ☒ I Agree Signature: Marie T Gillespie Page 45 of 194 BOARD/COMMISSION APPLICATION Application Type: Pasco Public Facilities District Board Name Craig Maloney Address Phone Alternative Phone Email Address District of Residence: District 6 Registered Voter: Yes DEMOGRAPHIC INFORMATION Length of Residency 20 years What gender do you identify with? Male Race or Ethnicity White GENERAL QUESTIONS: Employment Status Employed Employer PNNL Present Employment Research Analyst, October 2019 - Present Educational Background B. S., Applied and Computational Mathematical Sciences, Minor in Mathematics, University of Washington Reason for Applying I am excited to rejoin the board as it transitions from construction to operations. As a small business owner in Pasco, a project manager at PNNL, and long-standing community volunteer, I am well- equipped to help the PFD be successful. Relevant Experience Pasco PFD Board Member 2013 - 2017, Pasco City Council Liaison to Pasco PFD 2018 - 2023, and current Advisory Member of the Pasco PFD. Community Involvement Pasco City Council Member, District 6 2018 - 2023, Pasco Taco Crawl Committee Member 2015 - Present, etc. Have you served on this board, commission, or committee in the past and if so, how many terms did you serve? I previously served on the Pasco PFD Board, 2013 - 2017. Page 46 of 194 Craig Maloney Do you have any financial or personal conflicts of interest that would interfere with your participation on this board/commission? No. I am available to participate in the regularly scheduled board/commission meetings Yes DEMOGRAPHIC INFORMATION: Length of Residency: 20 years Race or Ethnicity: White What gender do you identify with? Male Disibility: None APPLICATION AGREEMENT I agree that all of the information contained in my responses to the questions on this application are true and accurate to the best of my knowledge. I further agree that, by checking the box below and submitting this application, online or otherwise, I am affixing my digital signature to this form as of the date submitted. I also understand that this application and supporting documents may be available for public inspection. ☒ I Agree Signature: Craig Maloney Page 47 of 194 1110 Osprey Pointe Boulevard, Suite 101 ן Pasco, WA 99301 ן (509) 547-9755 ן www.pascochamber.org June 9, 2026 Mayor Charles Grimm, City of Pasco 525 North 3rd Avenue Pasco, WA 99301 Dear Mayor Grimm: Please accept this letter of recommendation for re-appointment to the Pasco Public Facilities District for Mr. Craig Maloney. Mr. Maloney has dutifully served the Pasco community as a city councilmember Public for many years and his apportionment will further ensure that the overall mission for the PFD continues as it works to improve the business and tourism climate in Pasco. Craig has been a long-time community supporter and active in the Pasco Chamber of Commerce and Pasco Taco Crawl. Craig’s leadership and experience in the community makes him an excellent choice to be appointed to the Pasco PFD.. Sincerely, Colin Hastings Executive Director Page 48 of 194 AGENDA REPORT FOR: City Council June 29, 2026 TO: Harold L. Stewart II, City Manager City Council Regular Meeting: 7/20/26 FROM: Craig Raymond, Deputy Director Community & Economic Development SUBJECT: Public Meeting & Resolution No. 4765 - Accepting a Notice of Intent to Commence Annexation Goodwin 10% Annexation Petition (ANX 2026- 002) (5 minutes) I. ATTACHMENT(S): Resolution 4765 Exhibit A Exhibit B PPT II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT A PUBLIC MEETING MOTION: I move to approve Resolution No. 4765, accepting the Notice of Intent to Commence Annexation proceedings for the Goodwin Annexation for Parcel No. 118180157 (Parcel 1 of AFN 456145), located south of Harris Road and north of Interstate 182, southwest of the future Road 108 and Harris Road intersection, in Section 18, Township 9 North, Range 29 E.W.M., establishing the proposed annexation boundary and determining whether simultaneous zoning and the assumption of bonded indebtedness will be required. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: Annexation Process Overview At its July 6, 2026, meeting, the City Council established July 20, 2026, as the meeting date required under Chapter 35A.14 RCW following receipt of the Notice of Intent to Commence Annexation Proceedings for the proposed Goodwin Annexation. Page 49 of 194 The proposed annexation is being processed using the Direct Petition (60 Percent Petition) Method authorized under RCW 35A.14.120 through RCW 35A.14.150. At this stage of the process, the City Council is required to meet with reject, accept, to whether or and party initiating the determine geographically modify the proposed annexation area, determine whether the annexation area will assume all or a portion of the City's existing bonded indebtedness, and determine whether simultaneous zoning will be required. Acceptance of the Notice of Intent does not approve the annexation but authorizes the applicants and City staff to proceed with the remaining statutory annexation process. Background On May 22, 2026, Daisy Harris of Core States, on behalf of Larry and Malvina Goodwin, submitted a Notice of Intent to Commence Annexation Proceedings (10 Percent Petition) for Parcel No. 118180157 (Parcel 1 of AFN 456145), located south of Harris Road and north of Interstate 182, southwest of the future Road 108 and Harris Road intersection in Section 18, Township 9 North, Range 29 E.W.M., Franklin County, Washington. Following receipt of the Notice of Intent, staff reviewed the proposal for procedural and sufficiency and coordinated with affected agencies City departments. On July 6, 2026, the City Council adopted Resolution No. _____ establishing July 20, 2026, at 7:00 p.m. as the date and time to meet with the initiating party and consider the Notice of Intent to Commence Annexation Proceedings for the proposed Goodwin Annexation. Impact (Other than fiscal) The action before the City Council is limited to consideration of the Notice of Intent to Commence Annexation Proceedings. As part of this action, the Council will meet with the initiating party and determine whether to accept, reject, or geographically modify the proposed annexation area, determine whether simultaneous zoning will be required, and determine whether the annexation area will assume all or a portion of the City's existing bonded indebtedness. the not does Intent approve Notice the of Acceptance of annexation but authorizes the proposed annexation to proceed through the remaining statutory process. V. DISCUSSION: Recommendation: Staff recommends that the City Council approve the resolution accepting the Notice of Intent to Commence Annexation Proceedings for the proposed Goodwin the Annexation. Staff further recommends accepting proposed Page 50 of 194 annexation area as submitted, requiring simultaneous zoning of the annexation area, and requiring the annexation area to assume its proportionate share of the City's existing bonded indebtedness. Constraints (Time or other considerations) Pursuant to RCW 35A.14.120, the City Council is required to meet with the initiating parties within sixty (60) days of receiving a valid Notice of Intent to Commence Annexation Proceedings. This requirement was satisfied when the City Council established the meeting date on July 6, 2026, for consideration of the Notice of Intent on July 20, 2026. Following Council's action, staff will continue processing the proposed annexation in accordance with Chapter 35A.14 RCW. While there are few statutory deadlines governing the remainder of the annexation process, RCW 35A.01.040(8) provides that signatures dated more than six (6) months prior to the filing of the annexation petition must be stricken. Accordingly, staff will continue to advance the annexation process in a timely manner to ensure the petition remains valid and avoid the need to obtain new signatures. Staff Analysis Staff has reviewed the Notice of Intent and determined that it is procedurally sufficient to continue through the annexation process. The proposed the and Plan City's Comprehensive with consistent is annexation the Broadmoor Master Plan land use designation. Acceptance of the Notice of Intent establishes the framework for continued processing of the annexation but does not constitute approval of the annexation itself. Next Steps If the Council accepts the Notice of Intent, staff will proceed with the remaining annexation process, including certification of the annexation petition by the Franklin proposed of processing the Office Assessor's County and simultaneous zoning through the Hearing Examiner. Following the Hearing Examiner's recommendation, the City Council will consider both the annexation ordinance and the zoning ordinance. A public hearing before the City Council on the zoning recommendation will only be required if the Hearing Examiner's recommendation is appealed or if the City Council, by majority vote, elects to conduct its own public hearing. If ultimately annexed, the property will become subject to applicable City regulations, development standards, and municipal services. Alternatives 1. to staff direct and area proposed the Modify continue annexation processing the annexation. Such modifications may require revised petition materials and additional property owner signatures before the process can proceed. Page 51 of 194 2. Approve the resolution with different determinations regarding simultaneous zoning and/or the assumption of bonded indebtedness. 3. Reject the Notice of Intent to Commence Annexation Proceedings, thereby terminating the current annexation proposal. Page 52 of 194 Resolution: MF# ANX 2026-002 - 1 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING THE NOTICE OF INTENT TO COMMENCE ANNEXATION PROCEEDINGS FOR THE PROPOSED GOODWIN ANNEXATION; DETERMINING THE PROPOSED ANNEXATION AREA; AND DETERMINING WHETHER SIMULTANEOUS ZONING AND THE ASSUMPTION OF BONDED INDEBTEDNESS WILL BE REQUIRED. WHEREAS, the owners of property of Parcel No. 118180157 (Parcel 1 of AFN 456145) have filed a Notice of Intent to Commence Annexation Proceedings to the City of Pasco; and WHEREAS, on July 6, 2026 the City Council set a July 20, 2026, public meeting date with the initiators to consider (1) whether the City will accept, reject, or geographically modify the proposed a adoption of simultaneous the require will it whether (2) proposed annexation; zoning regulation; and (3) whether it will require the assumption of all or any portion of existing City indebtedness by the area to be annexed; and WHEREAS, the City Council has reviewed the Notice of Intent, conducted a public meeting with the initiators, and has determined it is in the best interests of the City to accept the proposal as described in Exhibit A and depicted in Exhibit B attached hereto; and WHEREAS, the City has determined that the proposed annexation site is within the Pasco Urban Growth Area, annexation of the proposed site would be a natural extension of the City and said annexation would be in the best interest of the Pasco community. NOW, THEREFORE, BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVE AS FOLLOWS: That the City will accept the proposed territory to be annexed as described in Exhibit A and depicted in Exhibit B attached hereto. Be It Further Resolved, that the territory to be annexed will not require simultaneous adoption of zoning regulations. Zoning will be determined through a public hearing process with input from affected property owners. Be It Further Resolved that the annexation area will be required to assume a proportionate share of existing City bonded indebtedness. Be It Further Resolved, that this Resolution shall take effect immediately. Page 53 of 194 Resolution: MF# ANX 2026-002 - 2 PASSED by the City Council of the City of Pasco, Washington, on this ____ day of ________________, 20__. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 54 of 194 EXHIBIT "A" Legal Description For APN/Parcel ID(s): 118180157 That portion of the Northeast Quarter of the Northwest Quarter of Section 18, Township 9 North, Range 29 East, W.M., records of Franklin County, Washington lying Northwesterly of the Northwesterly margin of State Highway SR 182 right of way and Easterly of the following described line: Beginning at a point on the North line of said Section which is 1711.47 feet East, as measured along said North line, from the Northwest corner thereof, said point being the True Point of Beginning; thence South 03°04' East a distance of 654.59 feet to intersect the Northwesterly right of way line of State Highway SR 182 and the terminus of said line EXCEPT Harris Road right of way along the North line thereof Page 55 of 194 Item:Parcel 118180157 Annexation N01 10% "Exhibit B"Applicant(s):Larry &Malvina Goodwin File #:ANX2026-002 NaK 210 410 820 1,200 1,60 III-:—:I Feet Pa g e 5 6 o f 1 9 4 Pasco City Council July 20, 2026 Regular Meeting Pa g e 5 7 o f 1 9 4 Public Meeting & Resolution – Accepting a Notice of Intent to Commence Annexation for the Goodwin Petition (ANX 2026-002) July 20, 2026 Pasco City Council Pa g e 5 8 o f 1 9 4 Pa g e 5 9 o f 1 9 4 Annexation Process Overview •Council considers: -Acceptance, rejection, or modification of annexation area -Assumption of City indebtedness -Simultaneous adoption of zoning regulations •If accepted, applicants submit formal 60% annexation petition for verification (sometimes 100% is received initially) •Petition reviewed and certified by Franklin County Assessor’s Office •Hearing Examiner reviews proposed zoning and forwards recommendation to City Council •City Council conducts a public hearing and adopts an annexation and zoning ordinance •Following approval, staff coordinates required notifications with OFM, County, utility providers, and other agencies Pa g e 6 0 o f 1 9 4 ANX 2026-002 – Goodwin Notice of Intent to Commence Annexation On July 6, 2026 City Council Passed a Resolution setting 7:00 PM, July 20, 2026, as the time and date for a public meeting to consider a Notice of Intent to Commence Annexation Proceedings for the Goodwin Annexation Area. City Council tonight will consider: -Acceptance, rejection, or modification of annexation area -Assumption of City indebtedness -Simultaneous adoption of zoning regulations July 6, 2026 Set Date Tonight -Public Meeting with Initiating Party & Accept Notice of Intent Later-Public Hearing for Annexation and Ordinance for Both Annexation and Zoning Determination Pa g e 6 1 o f 1 9 4 Recommendation •Accept the proposed annexation area as submitted. •Approve the resolution accepting the Notice of Intent to Commence Annexation Proceedings. •Require zoning of the annexation area to go through the Public Hearing process with input from affected property owners. •Require the annexation area to assume its proportionate share of the City's existing bonded indebtedness. Pa g e 6 2 o f 1 9 4 Questions? Thank you! Pa g e 6 3 o f 1 9 4 AGENDA REPORT FOR: City Council July 14, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Craig Raymond, Deputy Director Community & Economic Development SUBJECT: Public Hearing and Ordinance No. 4848 - R-15 and R-S-12 Frontage Improvement Code Amendments I. ATTACHMENT(S): 1. Draft Ordinance 2.Map of R-15 and R-S-12 zones 3.PowerPoint II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Conduct Public Hearing MOTION: I move to adopt Ordinance No. 4848, amending Pasco Municipal Code (PMC) Title 12.04 required sidewalk and driveway improvements; Title 12.36 concurrency; and Title 21.15 complete streets policy; and providing for severability and establishing an effective date. III. FISCAL IMPACT: The proposed amendments may reduce upfront development costs for property owners and builders within the affected residential zoning districts by deferring construction of certain frontage improvements. Future public infrastructure improvements may require City funding, grant funding, Local Improvement Districts, or other financing mechanisms if improvements are constructed at a later date. IV. HISTORY AND FACTS BRIEF: Background: On April 13, 2026, the City Council conducted a workshop to discuss frontage improvement requirements within the R-S-12 and R-S-20 (now R-15) residential zoning districts. The discussion reviewed the history of Ordinance 4454A, the City's Complete Streets Policy, right-of-way needs, pedestrian Page 64 of 194 safety considerations, Urban Growth Area standards, state middle housing requirements, and potential alternatives for addressing frontage improvements. The workshop materials outlined several policy options, including maintaining existing frontage improvement requirements, restoring exemptions, dedication. right-of-way requiring programs, fee-in-lieu implementing and Council reviewed the benefits and challenges associated with each option, including development costs, neighborhood character, future infrastructure needs, transportation planning considerations, and long-term City obligations. Since the April 13, 2026, workshop, the City's zoning code has been updated and the former R-S-20 zoning district has been replaced by the R-15 zoning district. Accordingly, references to the R-S-20 district discussed during the workshop have been replaced with the R-15 district in the proposed ordinance. Additionally, the City Council held a workshop meeting on July 13, 2026, where an updated draft of the proposed code language was reviewed and discussed. City Council Direction: Upon review and discussion, Council expressed that the draft as submitted was generally satisfactory to be presented during the July 20, 2026 public hearing inclusive of the provisions requiring right-of-way dedication as a non- waivable condition of development approval within the R-15 and R-S-12 zoning districts. The proposed amendments preserve future utility, roadway, bicycle, pedestrian, and other public infrastructure corridors while deferring construction of frontage improvements such as sidewalks, curbs, gutters, and streetlights. An additional element of the proposed amendments is the mechanism exemption acknowledge to the from benefiting owners property requiring possible future participation in public infrastructure financing. The proposed amendments require a recorded agreement acknowledging that the property owner will not contest the formation of a future Local Improvement District (LID) or similar funding mechanism for roadway or frontage improvements serving the or completion project following years (5) five of period a for area occupancy. V. DISCUSSION: Proposed Code Amendments: The proposed amendments would restore and revise PMC 12.04.080 (Optional Standards for the R-15 and R-S-12 Districts). Under the proposed code language, frontage improvements including sidewalks, curbs, gutters, and streetlights would not be required as a condition of permit approval when all of the following criteria are met: Page 65 of 194  Required right-of-way is dedicated as a non-waivable condition of development approval to preserve future capacity for roadway, bicycle, pedestrian, improvements infrastructure public and utility, other identified in adopted transportation plans;  A Traffic Impact Analysis, when required, does not identify frontage, pedestrian, bicycle or roadway improvements as necessary to satisfy concurrency, traffic safety, or life-safety requirements ; and  The property owner executes and records an agreement acknowledging that they will not contest the formation of a future Local Improvement District (LID) or similar funding mechanism established for roadway or frontage improvements serving the area for a period of five years following project completion or occupancy. PMC (Concurrency 12.36.050 proposed to amendments addition, In are Development Standards) and PMC 21.15.030 (Street Improvements) to ensure consistency between the frontage improvement exemption and existing concurrency, street improvement, and Complete Streets-related requirements. These amendments establish cross-references to PMC 12.04.080 and clarify that qualifying development within the R-15 and R-S-12 zoning districts may be exempt from frontage improvement requirements otherwise required by those sections. Environmental Review and Public Notice: A SEPA notice was processed on July 1, 2026. Comments received regarding the environmental review will be summarized and incorporated into the final staff report prepared for the July 20, 2026, public hearing. Notice was provided to the Washington State Department of Commerce on June 12, 2026, in accordance with RCW 36.70A.106. Notice of Public Hearing was published on June 24, 2026, for the July 20, 2026 public hearing. Impact (Other Than Fiscal): The proposed code amendments are expected to reduce upfront development costs within the R-15 and R-S-12 zoning districts by allowing qualifying development to defer construction of sidewalks, curbs, gutters, streetlights, and certain related frontage improvements that would otherwise be required under City code. The exemption would apply only when a Traffic Impact Analysis, if required, does not identify roadway, frontage, bicycle, or pedestrian improvements as necessary to satisfy concurrency, traffic safety, or life-safety requirements. The amendments would continue to require dedication of any necessary right-of- way as a non-waivable condition of development approval to preserve future Page 66 of 194 transportation and utility corridors identified in the City's adopted transportation plans. The amendments also establish exemptions from certain frontage improvement requirements contained within the City's concurrency and street improvement regulations while preserving the City's ability to require improvements where warranted by public safety, traffic safety, or concurrency requirements. Staff recognizes that the proposal may result in some roadway, frontage, bicycle, pedestrian, and Complete Streets improvements being constructed at a later date through future capital projects, Local Improvement Districts, grants, developer participation, or other funding mechanisms. Staff also notes that the proposal represents a policy shift from the City's longstanding approach of incrementally constructing transportation infrastructure as development occurs. However, staff believes the proposal can be implemented without creating legal conflicts with existing City plans, provided adequate right-of-way is preserved and traffic and life-safety requirements continue to be evaluated through the Traffic Impact Analysis process. Recommendation: Staff recommends consideration of the proposed ordinance implementing City Council direction by restoring frontage improvement exemptions within the R- 15 and R-S-12 zoning districts, requiring right-of-way dedication as a condition of development approval, requiring a recorded LID participation acknowledgment, and establishing corresponding amendments to the City's concurrency and street improvement regulations. Constraints (Time or Other Consideration): Timely adoption of preferred code amendments will facilitate the completion of ongoing plat and development projects. Next Steps The City Clerk’s Office will record it with the Franklin County Auditor and coordinate with General Code to ensure the updated code is published and effective on the adoption date. Alternatives: 1. Maintain existing frontage improvement requirements. 2. Adopt the proposed right-of-way dedication, Traffic Impact Analysis, and recorded LID participation acknowledgment approach. 3. Restore the frontage improvement exemption without requiring right-of- way dedication or a recorded LID participation acknowledgment. 4. Direct staff to evaluate alternative fee-in-lieu, reimbursement, or infrastructure financing programs. Page 67 of 194 Page 68 of 194 ORDINANCE NO. ____________ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING PASCO MUNICIPAL CODE (PMC) TITLE 12.04 REQUIRED SIDEWALK IMPROVEMENTSAND DRIVEWAY ; TITLE 12.36 CONCURRENCY; AND TITLE 21.15 COMPLETE STREETS POLICY; AND PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on September 3, 2019, the Pasco City Council adopted Ordinance 4484, removing previous exemptions from curb, gutter, sidewalk and streetlight requirements; and WHEREAS, certain development improvements including curb, gutter, sidewalk and streetlights increase up-front per-lot costs to new construction; and WHEREAS, in areas with very low traffic volume, these costs may not be proportionate with immediate need; and WHEREAS, the City of Pasco Planning Staff conducted a City Council workshop to discuss options for preserving semi-rural neighborhood character and incentivizing housing affordability in certain low-density Zoning Districts within the City; and WHEREAS, the City Council provided direction to City Staff to draft code amendments to be considered at a future public hearing; and WHEREAS, the City Council conducted an additional workshop meeting on July 13, 2026 to review proposed code amendments; and WHEREAS, the City Council held a public hearing on July 20, 2026 to discuss Ordinance XX; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Amending the Pasco Municipal Code Chapter 12.04, Required Sidewalk and Driveway Improvements Chapter 12.04 REQUIRED SIDEWALK AND DRIVEWAY IMPROVEMENTS Sections: 12.04.010 Purpose 12.04.020 Definitions 12.04.030 Responibility of abutting property 12.04.040 Permit Required 12.04.050 Permit Fee Page 69 of 194 12.04.060 Sidewalks 12.04.070 New Construction-Sidewalks and curbs required 12.04.080 Repealed Optional standards for the R-15 and R-S-12 districts 12.04.090 Security in lieu of completion of sidewalk and curb 12.04.100 Driveway standards 12.04.110 Abandoned driveway 12.04.120 Existing Driveways 12.04.130 Inspection-Conformance to plan 12.04.140 Maintenance of sidewalks 12.04.080 Optional standards for the R-S-20 and R-S-12 districts. Repealed by Ord. 4454. 12.04.080 Optional standards for the R-15 and R-S-12 districts. (1) Within the zones identified in this section, the installation of sidewalks, curbs, gutters, and streetlights shall not be required as a condition of permit approval for new construction, provided that all of the following criteria are met: (a) The applicant shall dedicate any required right-of-way as a non-waivable condition of development approval to preserve future capacity for roadway, bicycle, pedestrian, utility, and other public infrastructure improvements identified in the City's adopted transportation plans. (b) A Traffic Impact Analysis, when required, does not identify frontage, pedestrian, bicycle or roadway improvements as necessary to satisfy concurrency, traffic safety, or life-safety requirements; and (c) The property owner executes and records an agreement, in a form approved by the City, acknowledging that they will not contest the formation of a future Local Improvement District (LID) or similar funding mechanism established for the construction of roadway or frontage improvements serving the area. Such agreement shall remain in effect for a period of five (5) years following final occupancy or project completion, whichever occurs later, and shall be recorded against the property prior to issuance of any building permit. Section 2. Pasco Municipal Code Chapter 12.36.050 Concurrency Development Standards is amended as follows: 12.36.050 Concurrency development standards. All development activities, exempt or nonexempt, are subject to the following development standards: (1) Street Improvements Page 70 of 194 (a) Except as provided in PMC 12.04.080, Rright-of-way improvements shall be required at the time adjoining property is developed and shall be required on all property. As a minimum, a three-quarter street standard will be required if the property being developed only fronts on one side of the street. (b) Adequate and proper right-of-way improvements shall include curb, gutter, sidewalk, illumination, traffic control devices, drainage control, engineered road bases, asphalt driving and parking lanes, and monumentation. All such improvements shall be approved by the City prior to construction and acceptance. The three-quarter street standard shall include curb, gutter, and sidewalk on the developed side and a minimum of two complete traffic lanes. (c) The developer of real property shall be responsible for installing the required improvements within the respective half of right-of-way width abutting the real property being developed; provided, that such improvements consist of at least two traffic lanes. (d) Minimum sidewalk widths, not including the six-inch curb, shall not be less than the following: (i) Residential zones: four and one-half feet; (ii) Commercial zones: six and one-half feet. (2) Utility Improvements. Water and sewer improvements shall be required at the time adjoining property is developed and shall be required on all property. Water and sewer utilities shall be extended through the length of the property being developed. The design and construction of water and sewer utilities shall conform to the construction standards as prepared by the City Engineer. Section 3. Pasco Municipal Code 21.15.030 Street improvements, is amended as follows: 21.15.030 Street improvements. (1) Except as provided in PMC 12.04.080, Aadequate and proper right-of-way improvements shall be required at the time adjoining property is developed and shall be required on all property. As a minimum a three-quarter street standard will be required if the property being developed only fronts on one side of the street. (2) Adequate and proper right-of-way improvements shall include curb, gutter, sidewalk, illumination, traffic control devices, drainage control, engineered road bases, asphalt driving and parking lanes, nonmotorized facilities for bicyclists and pedestrians, and monumentation. All such improvements shall be approved by the City prior to construction and acceptance. The three -quarter street standard shall include curb, gutter and sidewalk on the developed side and a minimum of two complete traffic lanes. (3) The developer of real property shall be responsible for installing the required improvements within the respective half of right-of-way width abutting the real property being developed, provided such improvements consist of at least two traffic lanes. (4) Right-of-way widths shall be adequate for current, near-term, and long-term growth, and shall be adequate to accommodate bike/ped facilities suitable for all ages and capabilities in accordance with the Page 71 of 194 Complete Streets Ordinance (Chapter 12.15 PMC), and per the standard specifications as prepared by the City Engineer. (5) Functional classification designation and spacing is to be determined by the City Engineer based on application of road spacing recommendations provided in the Pasco Municipal Code, with consideration for existing nearby road classifications, existing ROW width, and accommodating areas of inadequate road infrastructure. (6) Except as provided in PMC 12.04.080, Aall improvements within the City of Pasco public right-of-way shall be in conformance with the Pasco Complete Policy, Chapter 12.15 PMC Section 4. 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 5. 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 6. Effective Date. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington this _____ day of _________ 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Ogden Murphy Wallace, PLLC City Clerk City Attorney Published: _____________________________ Page 72 of 194 ²0 1 Miles 6/24/2026DATE Zoning - R15 & R-S-12 Legend Zoning R-15, Low Density Residential District R-S-12, Residential Suburban District Municple Boundaries City Limits Urban Growth Areas Pa g e 7 3 o f 1 9 4 R-S-12 & R-15 Frontage Improvement Requirements Policy Considerations for Council July 20, 2026 Pa g e 7 4 o f 1 9 4 PURPOSE & BACKGROUND Staff presents both benefits and concerns to help Council make an informed policy decision. Ordinance 4454A (2019) Removed Section 12.04.080, which previously exempted R-S-12 and R-S-20 zones from sidewalk, curb, gutter, and street light requirements. Now proposed: Council is considering allowing developers in R-S-12/R-S-20 (now R-15) to once again opt out of frontage improvements at time of development. BACKGROUND WHAT THIS PRESENTATION COVERS • Urban Growth Area (UGA) standards • Complete Streets Policy (PMC 12.15) • Right-of-way & future density needs • Neighborhood Character BACKGROUND Pa g e 7 5 o f 1 9 4 R-S-20 & R-S-12 MAP Pa g e 7 6 o f 1 9 4 CASE FOR THE EXEMPTION Council's proposed exemption offers two genuine benefits worth weighing: Curb, gutter, sidewalk & street light installation adds significant per-lot costs to new construction. In areas with very low traffic volumes, these costs may not be proportionate to immediate need. Lower up-front costs can incentivize single- family construction and support housing affordability. NEIGHBORHOOD CHARACTER R-S-12 and R-15 are the City's lowest-density residential zones, with rural or semi-rural character. Residents in these areas may prefer to preserve the open, informal streetscape consistent with large-lot living. Requiring urban-style frontage improvements may feel inconsistent with the existing character of these neighborhoods. LOWER DEVELOPMENT COSTS Pa g e 7 7 o f 1 9 4 URBAN GROWTH AREA (UGA) STANDARDS City is actively working with County to develop UGA areas up to city infrastructure standards. NEGOTIATING LEVERAGE AT RISK The City's argument that UGA areas must build to city street standards is undermined if Pasco itself exempts its own zones from those same standards. It is difficult to require what the City does not apply internally. CONSISTENCY WITH COMP PLAN The Comprehensive Plan calls for an interconnected network of streets, trails, and access ways and encourages multi-modal transportation. Exemptions in RS zones create permanent barriers to achieving these stated goals. FUTURE ANNEXATION COSTS When UGA areas are eventually annexed with substandard streets, the City inherits the liability for retrofitting infrastructure, at significantly greater expense than requiring improvements at time of initial development. Pa g e 7 8 o f 1 9 4 COMPLETE STREETS POLICY In 2018, the Pasco City Council adopted Ordinance 4389 (Chapter 12.15 PMC) establishing a Complete Streets Policy, committing to design streets that safely serve all users: pedestrians, cyclists, transit riders, and motorists of all ages and abilities. POLICY CONFLICT Exempting R-S-12/R-15 from sidewalks and street lights directly conflicts with the Complete Streets Policy EXCEPTION STANDARDS PMC 12.15.040 allows exemptions only when there is a documented absence of need, when implementation is physically infeasible, or when cost is excessively disproportionate to benefit — not as a blanket zone-wide opt-out for developers. •Creates a con •Within City of Pasco Transportation System Master Plan, June 2022 •Creates a connected, multimodal network •Improves safety and accessibility •Combines projects into one coordinated system •Implemented over time with shared funding BIKE & PED MASTER PLAN Pa g e 7 9 o f 1 9 4 RIGHT-OF-WAY & FUTURE DENSITY NEEDS A key question for Council: Should the City require additional ROW dedication at time of development to protect future options? ROW ONCE —RETROFIT NEVER Requiring ROW dedication at time of permit is the City's only low-cost opportunity. Once a home is built, acquiring additional ROW requires costly condemnation or negotiation. MIDDLE HOUSING DENSITY HB 1110 allows 4-6 units per lot on existing RS lots. Current ROW widths may be insufficient to accommodate the curb, sidewalk, and utility corridor that higher density will eventually require. SEWER LIFT STATIONS Future growth in R-S-12/R-15 areas may require sewer lift stations or utility easements. Without additional ROW secured upfront, the City will lack space for these facilities without expensive land acquisition. GMA INFRASTRUCTURE OBLIGATION Under RCW 36.70A, the City must ensure infrastructure is adequate to serve planned growth. Failure to secure ROW now may mean the City cannot demonstrate concurrency for future development approvals. Pa g e 8 0 o f 1 9 4 SUMMARY • Lower development costs for R-S-12/R-15 builders • Preserves semi-rural neighborhood character • Reduces per-permit burden on individual property owners today • May incentivize housing construction in large-lot zones (including middle housing) CONCERNS •TIA policy may obscure traffic and life safety issue awareness • Undermines UGA City standard arguments • Conflicts with Complete Streets Policy • If HB 1110 increases density, infrastructure won't keep up • Loss of ROW opportunity for future utility needs • Pedestrian and traffic safety risks from dark, sidewalk-free streets ✓BENEFITS Pa g e 8 1 o f 1 9 4 Discussion & Questions Pa g e 8 2 o f 1 9 4 AGENDA REPORT FOR: City Council June 30, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Harold Stewart, City Manager City Manager SUBJECT: Ordinance No. 4849 - Creating Chapter 3.31 of the Pasco Municipal Code – Local Income Tax I. ATTACHMENT(S): Proposed Ordinance 4849 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. 4849 creating a new Chapter 3.31 of the Pasco Municipal Code entitled "Local Income Tax," within title 3 "Revenue and Finance" of the Pasco Municipal Code, to oppose a local income tax on the residents and businesses of the City of Pasco providing for severability and establishing an effective date. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: Background In February 2022, the Pasco City Council adopted Resolution No. 4150 expressing the City's opposition to a local income tax. During the 2026 Legislative legislation enacted Legislature Washington the Session, State establishing a statewide personal income tax on certain high-income individuals, representing a significant change in the State's historic tax structure. In response, the City Council adopted Resolution No. 4763 reaffirming the City's opposition to both state and local personal income taxes in Washington State. At the time the resolution was considered, Council also reviewed a proposed ordinance that would codify the City's longstanding policy within the Pasco Municipal Code. Council directed staff to return with the ordinance for formal Page 83 of 194 consideration. The proposed ordinance creates a new Chapter 3.31 of the Pasco Municipal Code entitled "Local Income Tax." The ordinance formally prohibits the imposition of a local income tax within the City of Pasco and codifies the City's longstanding tax competitive and stable to maintaining commitment a environment that supports economic development and business investment. Impacts Other than Fiscal The proposed ordinance has no immediate fiscal or operational impact. Rather, it codifies the City's existing policy position regarding local income taxes within the Pasco Municipal Code. V. DISCUSSION: Recommendation Adopt the proposed ordinance creating Chapter 3.31 of the Pasco Municipal Code entitled "Local Income Tax." Constraints The authority to authorize or prohibit local income taxes ultimately rests with the Washington State Legislature and applicable constitutional law. Adoption of this ordinance does not alter existing state law but formally establishes the City's policy within the Pasco Municipal Code opposing the imposition of a local income tax in the City of Pasco. Next Steps Upon adoption, the ordinance will be codified within the Pasco Municipal Code and become effective five (5) days after passage and publication as required by law. Alternatives  Adopt the ordinance as presented.  Amend the ordinance  Take no action. Page 84 of 194 Ordinance – Amending PMC, Creating Chapter 3.31 - 1 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, CREATING A NEW CHAPTER 3.31, ENTITLED “LOCAL INCOME TAX,” WITHIN TITLE 3, “REVENUE AND FINANCE” OF THE PASCO MUNICIPAL CODE, AND RESIDENTS TAX ON THE INCOME A LOCAL TO OPPOSE BUSINESSES OF THE CITY OF PASCO PROVIDING FOR SEVERABILITY AND ESTABLISHNG AN EFFECTIVE DATE. WHEREAS, the City of Pasco is committed to fostering a strong local economy through a stable, predictable, competitive tax environment that encourages investment, entrepreneurship, family-wage employment, and long-term economic growth; and WHEREAS, Washington State has historically relied upon a tax system consisting primarily of sales, property, business and occupation, and excise taxes rather than a broad-based personal income tax; and WHEREAS, the Pasco City Council previously adopted Resolution No. 4150 in 2022 expressing its opposition to the authorization and imposition of a local income tax, reaffirming the City's longstanding commitment to maintaining a favorable business climate; WHEREAS, during the 2026 Legislative Session, the Washington State Legislature enacted legislation establishing a personal income tax on certain high-income individuals, representing a significant change in the State's historic tax structure; and WHEREAS, legislation has also been introduced in prior legislative sessions proposing to authorize counties, cities, and towns to levy local personal income taxes under certain circumstances; and WHEREAS, the City Council believes that expanding reliance on personal income taxes, whether imposed by the State or authorized by local governments, may discourage private investment, business expansion, workforce attraction, and long-term economic development within communities such as Pasco; and WHEREAS, the City Council remains committed to policies that promote economic opportunities, encourage business retention and expansion, support workforce development, and maintain a tax environment that provides certainty for residents, employers, and local governments. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That a new Chapter 3.31 entitled “Local Income Tax” of the Pasco Municipal Code shall be and hereby is created and shall read as follows: Chapter 3.31 Local Income Tax Sections: 3.31.010 Purpose. Page 85 of 194 Ordinance – Amending PMC, Creating Chapter 3.31 - 2 3.31.020 Local Income Tax Banned. 3.31.010 Purpose. The imposition of a local income tax on the businesses and residents of the City of Pasco is a direct conflict with thethrough development economic promoting on City the value high the places attraction and expansion of financially healthy, family wage paying employers. Small businesses are the foundation of our that theimperative local, regional, state, and national it and economy is unnecessary put City not obstacles in the way of their success. 3.31.020 Local Income Tax Prohibited. No local income tax shall be imposed upon the Residents or Businesses of the City of Pasco. Section 2. This Ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, this day of , 2026. Charles Grimm, Mayor ATTEST: APPROVED AS TO FORM: Gabriela Sanchez, Ogden Murphy Wallace, PLLC City Clerk City Attorney Published: Page 86 of 194 AGENDA REPORT FOR: City Council July 16, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Craig Raymond, Deputy Director Community & Economic Development SUBJECT: Ordinance No. 4850 - Imposing a Six-Month Moratorium on Licenses and Mining Cryptocurrency Centers, Data related to Permits New Facilities, Blockchain Computing Facilities and Artificial Intelligence Computing Facilities on I. ATTACHMENT(S): Ordinance No. 4850 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. 4850, an ordinance of the City of Pasco, Washington, imposing a six-month moratorium on the acceptance and processing of business licenses and/or development permit applications blockchain facilities, mining cryptocurrency data new to related centers, computing facilities, artificial intelligence computing facilities, and other high- density computing facilities; setting forth preliminary findings in support of this moratorium; declaring an emergency; establishing an immediate effective date; authorizing publication by summary only; and directing staff to develop and return to City Council with recommended land use regulations addressing the permitting and licensing of these facilities within six months of adoption of the moratorium. III. FISCAL IMPACT: Fiscal: None anticipated at this time. IV. HISTORY AND FACTS BRIEF: Background: Permitting and construction of high-density computing facilities—including data centers, cryptocurrency mining operations, blockchain computing facilities, and artificial intelligence computing facilities—are rapidly expanding across the Page 87 of 194 country, including in Washington State and within our region. Under current Pasco Municipal Code, data centers are allowed by right in the I-2 and I-3 zoning districts. They are subject only to the City’s general zoning standards including but not limited to setbacks, height limits, lot coverage requirements, noise limits, and other applicable concurrency requirements. No data-center-specific conditions or regulations presently apply. 14318, Order Executive government issued the 2025, July In federal Accelerating Federal Permitting of Data Center Infrastructure and America’s Action Plan, underscoring the national economic and security significance of data center infrastructure. Impact (Other than Fiscal): This will be a matter of significant public interest and will likely generate community discussion and participation. V. DISCUSSION: Recommendation: Given the pace, scale, and complexity of data center development—and recognizing environmental demands and significant infrastructure their impacts—staff recommends that the City of Pasco develop and adopt should regulations These reflect land-use data-center-specific regulations. community values, state and federal regulatory parameters, and the realities of local infrastructure capacity. Due to substantial public interest and anticipated community impacts, staff further recommends that the City Council adopt a temporary moratorium on new data center-related applications. This moratorium would remain in place until appropriate regulations are developed and formally approved by Council but no later than six months from the date of adoption. Staff emphasizes the complexity of the issues and recommends a thoughtful, deliberate approach to code development and transparent public engagement. Next Steps: 1. Approve the attached ordinance establishing a six-month moratorium on accepting data center-related development applications. This will provide time for staff to prepare recommended land-use regulations and conduct public engagement. 2. Hold a public hearing within 60 days of adopting the moratorium, as required by State law. 3. Conduct additional public hearings to gather community feedback on potential impacts and concerns. Page 88 of 194 4. Direct staff to draft and present a recommended data center ordinance no later than December 2026. 5. Council adopts ordinance and lifts moratorium no later than 6 months following adoption of the moratorium. Alternatives: 1. Council could direct staff to develop an interim/emergency ordinance between the moratorium and final ordinance. This would minimize the length of the moratorium, and the use of the interim ordinance is easier to extend if necessary than the moratorium. 2. Council could decide to leave data centers minimally regulated by existing Pasco Municipal Codes. Page 89 of 194 4916-5781-4717, v. 1 ORDINANCE NO. __________ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, IMPOSING A SIX-MONTH MORATORIUM ON THE ACCEPTANCE AND PROCESSING OF BUSINESS LICENSES AND/OR DEVELOPMENT PERMIT APPLICATIONS RELATED TO NEW DATA CENTERS, CRYPTOCURRENCY MINING FACILITIES, BLOCKCHAIN COMPUTING FACILITIES, ARTIFICIAL INTELLIGENCE COMPUTING FACILITIES, AND OTHER HIGH-FACILITIESDENSITY COMPUTING SETTING ; FORTH PRELIMINARY FINDINGS IN SUPPORT OF THIS MORATORIUM; DECLARING AN EMERGENCY AND ESTABLISHING AN IMMEDIATE EFFECTIVE DATE; PROVIDING FOR A PUBLIC HEARING WITHIN 60 DAYS; AND PROVIDING FOR SEVERABILITY WHEREAS, the City Council has authority under Article XI, Section 11 of the Washington State Constitution, RCW 35A.63.220, RCW 36.70A.200, and RCW 36.70A.390 to regulate land uses and adopt interim zoning controls and moratoria; and WHEREAS, the City anticipates future applications for data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and other high-density computing facilities, demonstrating an immediate need to evaluate whether the City's existing land use regulations adequately address these emerging uses; and WHEREAS, the City has not previously adopted specific development regulations, operational standards, or review criteria governing data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and other high-density computing facilities, making it necessary to evaluate these uses before new applications are accepted and processed; and WHEREAS, the City Council finds that it is in the public interest to temporarily suspend the acceptance and processing of applications for these uses while the City evaluates appropriate zoning classifications, development standards, review procedures, and operational performance standards to ensure that future development is compatible with surrounding land uses and consistent with the City's Comprehensive Plan and long-term planning objectives; and WHEREAS, data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities are large-scale facilities that house computer servers, storage systems, and associated infrastructure for processing, storing, and distributing digital data, and which typically require substantial land area, structures, electrical power, water for cooling, and associated mechanical equipment; and WHEREAS, the development of data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities has increased significantly in recent years as demand for cloud computing, artificial intelligence infrastructure, cryptocurrency mining, blockchain computing, and digital storage has Page 90 of 194 4916-5781-4717, v. 1 grown nationally and regionally, including in eastern Washington due in part to access to low-cost hydroelectric power; and WHEREAS, data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities impose unique and significant demands on local utility infrastructure, including electrical supply and water systems, which may strain existing City infrastructure and service capacity; and WHEREAS and code, zoning development regulations, City's the , existing Comprehensive Plan were not specifically designed to address the scale, characteristics, and potential impacts of data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities; and WHEREAS, the City Council also has determined that the City's current land use regulations may be inadequate to address the land use, environmental, infrastructure, noise, and compatibility impacts associated with the siting and operation of data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and other high-density computing facilities; and WHEREAS, the City Council finds that additional time is necessary to develop a clear review and approval process for data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities, evaluate zoning regulations and development standards, evaluate public safety and compatibility considerations, and adopt interim or permanent development regulations; and WHEREAS, without a moratorium, business license and/or permit applications related to data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities could vest under existing regulations that do not contain criteria or review procedures; and WHEREAS, the City Council intends to study regulations for data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities with input from the Planning Commission, staff, and the community; and WHEREAS, a temporary moratorium is necessary to protect the public health, safety, and welfare while the City develops appropriate regulations; and WHEREAS, a moratorium will allow the City time to study the characteristics and impacts of data centers, solicit public input, consult with affected utilities and agencies, and develop land use regulations that appropriately address data center development in a manner consistent with the City's Comprehensive Plan and community objectives; and WHEREAS, the City Council finds that the adoption of this moratorium is necessary as an emergency measure to preserve the public health, safety, and welfare and to protect the integrity of the City's land use planning process pending the development of appropriate standards; and Page 91 of 194 4916-5781-4717, v. 1 WHEREAS, this ordinance is intended to include necessary supporting recitals incorporated as findings of fact, impose a moratorium on acceptance and processing of applications related to data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities, exempt vested applications, establish a six-month duration, require a public hearing within 60 days, and declare an emergency establishing an immediate effective date. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings of Fact. The recitals set forth above are adopted as the City Council’s initial findings of fact in support of the moratorium established by this ordinance. Section 2. Declaration of Emergency. The City Council declares this moratorium to be an emergency measure necessary for the immediate protection of public health, safety, property, and welfare. Section 3. Moratorium Imposed. Pursuant to Article XI, Section 11 of the Washington State Constitution, RCW 35A.63.220, and RCW 36.70A.390, the City hereby imposes a temporary moratorium on the acceptance and processing of development permit applications related to data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities. This moratorium applies to, but is not limited to, business license applications, building permit applications, conditional use permit applications, site plan review applications, binding site plan applications, subdivision and short subdivision applications, pre-application conferences, and any other land-use approvals or development permit applications related to data centers, cryptocurrency mining facilities, blockchain computing facilities, artificial intelligence computing facilities, and high-density computing facilities. Section 4. Effect on Vested Rights. This moratorium applies prospectively only and does not affect applications determined to be complete prior to the effective date of this ordinance. Section 5. Duration of Moratorium. This moratorium shall remain in effect for six (6) months from the date of adoption unless extended in accordance with RCW 35A.63.220 and RCW 36.70A.390 or replaced by interim or permanent regulations. Section 6. Public Hearing. The City Council shall hold a public hearing within sixty (60) days of adoption of this ordinance to receive public testimony and consider additional findings of fact. Section 7. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance should be held to be 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. Page 92 of 194 4916-5781-4717, v. 1 Section 8. 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 regulation s; or numbering or referencing of ordinances or their sections and subsections. Section 9. Effective Date. This ordinance shall take effect immediately upon adoption. PASSED by the City Council of the City of Pasco, Washington this ___ day of _____, 202_. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Ogden Murphy Wallace, PLLC City Clerk City Attorney Published: _____________________________ Page 93 of 194 AGENDA REPORT FOR: City Council June 12, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Brent Cook, Police Chief Police Department SUBJECT: Resolution No. 4766 - Washington State University and the City of Pasco Research Footage Camera Body-Worn for Use the of for Purposes. I. ATTACHMENT(S): Resolution No. 4766 Data Use Agreement between Washington State University and City of Pasco II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Motion: I move to approve Resolution No. 4766, authorizing the City Manager to execute an Agreement between the City of Pasco and Washington State University for the use of Pasco Police Department body-worn camera footage for approved academic research purposes. III. FISCAL IMPACT: There is no direct fiscal impact associated with this agreement. The research project is being conducted by Washington State University (WSU) and does not require funding from the City of Pasco. IV. HISTORY AND FACTS BRIEF: Background: WSU has requested access to a limited sample of Pasco Police Department body-worn camera footage for an approved academic research project. The purpose of the study is to examine police-citizen interactions, communication, and procedural justice during contacts between law enforcement officers and members of the public. The project will involve reviewing, coding, and analyzing selected body-worn camera footage and preparing a summary report of the findings. Page 94 of 194 The proposed Data Use Agreement establishes the terms and conditions governing WSU's access to the footage, including confidentiality requirements, data security measures, background check requirements, and restrictions on the use and disclosure of information. The Pasco Police Department will retain ownership of all records provided under the agreement. Impact (other than fiscal): The proposed research is expected to provide the Pasco Police Department with objective information regarding police-public interactions that may assist in evaluating practices, enhancing training opportunities, and supporting continued efforts to strengthen public trust and professional service. The agreement also supports collaboration between local government and higher education institutions to advance research related to public safety and law enforcement practices. V. DISCUSSION: Recommendation: Staff recommends approval of the Resolution and authorization for the City Manager State Washington with Agreement execute the to Interagency University. Constraints (Time or other considerations): The agreement must be executed before any data may be shared with WSU. All access to body-worn camera footage will be subject to the terms and conditions outlined in the Data Use Agreement and applicable state and federal laws governing public records, privacy, and criminal justice information. Next Steps:  City Council approval of the Resolution  City Manager executes the Interagency Agreement.  Pasco Police Department coordinates with WSU regarding secure access to approved footage.  WSU conducts the research project and provides a summary report of findings upon completion. Alternatives:  Deny approval of the Interagency Agreement and decline participation in the research project.  Direct staff to negotiate modifications to the agreement and return to Council for future consideration. Page 95 of 194  Table consideration of the agreement pending additional information or discussion. Page 96 of 194 Resolution - _____ ILA - 1 Version 1.9.26 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERAGENCY AGREEMENT BETWEEN WASHINGTON STATE UNIVERSITY AND THE CITY OF PASCO FOR THE USE OF BODY-WORN CAMERA FOOTAGE FOR RESEARCH PURPOSES. WHEREAS, RCW 39.34, INTERLOCAL COOPERATION ACT, authorizes political subdivisions to jointly exercise their powers, privileges, or authorities with other political subdivisions of this state through the execution of an interlocal cooperative or interagency agreement; and, WHEREAS, Washington State University ("WSU") has requested access to certain Pasco Police Department body-worn camera footage for approved academic research regarding police- citizen interactions, including the evaluation of respectful and professional conduct during contacts between law enforcement officers and members of the public; and WHEREAS, terms, conditions, the establishes Use proposed Data the Agreement confidentiality requirements, and security measures governing WSU's access to and use of such footage for research purposes; and WHEREAS, the proposed research is expected to provide the Pasco Police Department with objective information regarding police- evaluating public interactions that may assist in practices, enhancing training opportunities, and supporting continued efforts to strengthen public trust and professional service; and WHEREAS, the City Council of the City of Pasco, Washington, has determined that it is in the best interest of the City of Pasco to enter into the Interagency Agreement with Washington State University for the authorized use of body-worn camera footage for research purposes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council approves the terms and conditions of the Interagency Agreement between Washington State University and the City of Pasco, a copy of which is attached hereto and incorporated herein by this reference as Exhibit A; and Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute said Agreement on behalf of the City of Pasco. Be It Further Resolved, that this Resolution shall take effect immediately. Page 97 of 194 Resolution - _____ ILA - 2 Version 1.9.26 PASSED by the City Council of the City of Pasco, Washington, on this ____ day of ________________, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 98 of 194 WSU DUA – Pasco Police Department Page 1 of 8 DATA USE AGREEMENT ORSO# 142041-003 I. PARTIES 1.1 THIS AGREEMENT (“Agreement”) is made and entered into by and between Washington State University (“WSU”), an institution of higher education and an agency of the state of Washington, and Pasco Police Department (“Department”). In this Agreement, the above entities are jointly referred to as PARTIES. II. PURPOSE 2.1 This Agreement provides the terms and conditions for a project which is of mutual interest and benefit to WSU and the Department. 2.2 The performance of such a sponsored project is consistent, compatible, and beneficial to the academic role and mission of WSU as an institution of higher education. 2.3 Washington State University desires access for approved research to certain body camera footage created by the Department (“Footage”), which is part of the Department’s law enforcement records owned and retained by the Department. This Footage includes de-identifiable information about those on the footage and is provided only for use in accordance with the use and storage conditions in this Agreement. III. DEFINITIONS 3.1 “WSU Project Director(s)” shall be Dr. David A. Makin, a WSU employee, designated by WSU to be the primary research contact with the Department. 3.2 “Agency Liaison” shall be Interim Chief of Police Brent Cook, a Department employee, designated by the Department to be the primary contact with the Project Director. 3.3 “Scope of Work” shall mean the sponsored project, under the direction of the Project Director, described in Attachment A–Scope of Work. 3.4 "Confidential Information" shall mean information in written, graphic, oral, or other tangible form protected by trade secret or other right of nondisclosure, including without limitation algorithms, formulae, techniques, improvements, technical drawings and data, and computer software, subject to applicable law. 3.5 “Copyright” shall mean any work developed under the Scope of Work that is subject to copyright under copyright law. Page 99 of 194 WSU DUA – Pasco Police Department Page 2 of 8 3.6 “Proprietary Information” means all data, sequences, and any other information obtained or developed during the course of the Scope of Work, subject to applicable law. 3.7 “Trademark” shall mean any trade or service marks developed under the Scope of Work whether or not registered under either state or federal trademark law. IV. SCOPE OF WORK 4.1 The Department acknowledges that this Agreement is for the performance of the Scope of Work as defined in Section 3.3 of this Agreement which shall be entitled, “Analysis of Police Citizen Interactions with the Public. V. GENERAL TERMS AND CONDITIONS In consideration of the mutual promises and covenants contained herein, the PARTIES agree to the following terms and conditions. 5.1 Period of Performance. The specific period of performance for the Scope of Work shall be upon execution of this Agreement to June 25, 2029, unless a time extension is mutually agreed upon in writing between the PARTIES in accordance with Section 5.15, Amendments. 5.2 Equipment. (RESERVED) 5.3 Key Personnel. The WSU Project Director may select and supervise other project staff as needed to perform the Scope of Work. No other person will be substituted for the Project Director except with the consent of the Department. The Project Director and the Agency Liaison shall mutually define the frequency and nature of these communications. 5.4 Confidential Information. 5.4.1 To the extent allowed by law, WSU and the Department agree to use reasonable of disclosure care avoid to unauthorized Confidential Information, including, without limitation, taking measures to prevent creating a premature bar to a United States or foreign patent application. Each party will limit access to Confidential Information received from another party hereto to those persons having a need to know. Each party shall empl in storing, receiving, safeguards oy same the reasonable transmitting, and using Confidential Information that prudent organizations normally exercise with respect to their own confidential information of significant value. 5.4.2 oral graphic, written, include or Information Confidential shall communication. Confidential Information shall not be disclosed by the receiving party to a third party for a period of five (5) years from receipt of such information or until a patent is pu Confidential blished or the Information is published by the disclosing party or unless the disclosing and receiving parties agree otherwise and in writing at the time of disclosure. Third parties shall include all governmental offices. Page 100 of 194 WSU DUA – Pasco Police Department Page 3 of 8 5.4.3 Confidential Information shall not include information which: 5.4.3.1 was in the receiving party's possession prior to receipt of the disclosed information; 5.4.3.2 is or becomes a matter of public knowledge through no fault of the receiving party. 5.4.3.3 is received from a third party without a duty of confidentiality. 5.4.3.4 is independently developed by the receiving party. 5.4.3.5 is required to be disclosed under operation of law. 5.4.3.6 is reasonably ascertained by WSU or the Department to create a risk to a trial subject or to public health and safety. 5.4.4 of state the of institution educational an as that understood is It Washington, WSU is subject to Washington state laws and regulations, including the Washington Public Records Act, Chapter 42.56 RCW. It is also understood that the Department is subject to the Public Records Act. If a Public Disclosure Act request is made to view Department’s Confidential Information, WSU will promptly notify Department of the request, such that Department has the opportunity to seek a court order enjoining disclosure. WSU will work collaboratively Department to identify any applicable exemption(s) to disclosure and appropriately redact the information to be released. The release of data will be limited to only those records that must be released to comply with the request. 5.5 Safeguards and Security Measures. 5.5.1 The safeguards and security measures in this section are to preserve the confidentiality and security of the data within the files that are the subject of this Agreement. WSU agrees to adopt, at minimum, the security safeguards and procedures described in this section. 5.5.2 WSU shall access and code video Footage only through the Evidence.com system and shall employ the following protocols and restrictions to ensure the confidentiality of the Footage. 5.5.3 Each individual researcher or coder that Dr. David A. Makin authorizes to access the Footage must complete CITI training on Human Subject Research as required by the WSU Institutional Review Board; sign an individual confidentiality agreement; receive a background check CJIS Level 2 certification; and be cleared to participate by the Department. Fingerprinting and background checks will be provided by the Pullman Police Department. 5.5.4 All coders who while accessing the Footage encounter any image or other identifiable information regarding a person with whom they are personally acquainted shall stop coding immediately and report the incident to Dr. David A. Makin and the lab manager. Dr. David A. Makin shall assign another coder to code the video. Page 101 of 194 WSU DUA – Pasco Police Department Page 4 of 8 5.5.5 According to the approved WSU Institutional Review Board, encrypted de- identified data shall refer to the confidential linked ID, which is generated in the data. This confidential linked ID de-identifies the officer, ensuring the data and any performed analysis cannot be tracked to a specific agency or officer. 5.5.6 WSU will be provided access to the footage only via Evidence.com. Limited Access accounts will be provided via individual accounts to access the Evidence.com system. Access shall require two-stage authentication and IP logging. To the extent practicable, WSU will use IP verification of the computer to enable only the computers in Dr. David A. Makin’s laboratory to access Evidence.com. Coders will then review the footage through Evidence.com. They will not be able to download any information from within the system. No video information will be stored on the WSU network files and will be encrypted as set forth above. 5.5.7 Limited access accounts will be provided for each coder such that a coder will have access to only videos from the Department’s Use of Force, Criminal Code Violations, and Traffic categories. If any researcher or coder encounters any portion of the Footage recorded inside a home or medical facility, the coder shall discontinue access to the Footage and report this to Dr. Makin. Dr. Makin will ensure those portions of the Footage are made unavailable to the researchers and coders. 5.5.8 To the extent not in conflict with this Agreement, the security terms in the protocol for the approved research shall also be adhered to and are incorporated in this Agreement as if set out in full. 5.6 Publication. WSU reserves the right to publish or permit to be published by WSU employees the results of the Scope of Work undertaken by WSU employees. To prevent untimely disclosure or exploitation of the Department’s Confidential Information, WSU shall provide the Agency Liaison with a copy of any proposed publication resulting from the Scope of Work at least thirty (30) days prior to submission for publication. The Department shall have thirty (30) days (the "Pre- publication Review Period") from receipt of the draft to review the proposed publication. If the Department determines that Department Confidential Information is included in the proposed publication, WSU will at the Department’s request remove the Department’s Confidential Information prior to submission for publication. If the proposed draft publication contains Department Confidential Information, the Department may request that WSU’s submission of the draft for publication be delayed for up to sixty (60) days beyond the end of the Pre- publication Review Period. If the Department seeks to delay publication, the Department shall make such request in writing prior to the expiration of the Pre- publication or information the of Review with together Period identification materials of concern and reasons why delay is warranted. Department may delay publication by ninety (90) days to allow WSU or the Department, as the case may be, to seek patent protection. 5.7 Publicity. The Department shall not include the name of Washington State University, WSU, Washington State University Research Foundation, WSURF, or any of either entity’s Trademarks in any advertising, sales promotion, or other Page 102 of 194 WSU DUA – Pasco Police Department Page 5 of 8 publicity matter without prior written approval of the President of WSU or their designee. 5.8 Termination for Convenience. This Agreement may be terminated by either party hereto upon written notice delivered to the other party at least thirty (30) days prior to the intended date of termination. By such termination, neither party may nullify obligations already incurred prior to the date of termination. 5.9 Termination for Cause. In the event either party shall commit any material breach of or default in any terms or conditions of this Agreement, and also shall fail to remedy such default or breach within sixty (60) days after receipt of written notice thereof, the non-breaching party may, at its option and in addition to any other remedies which it may have at law or in equity, terminate this Agreement by sending notice of termination in writing to the other party to that effect. Termination shall be effective as of the day of receipt of such notice. 5.10 Termination Obligations. Termination of this Agreement shall not relieve either party of any obligations incurred prior to the date of termination. 5.11 Data Rights. Copyright in all material created by WSU and paid for by the Department as part of this Agreement shall be the property of WSU, subject to applicable law. Both the Department and WSU may use these materials for research purposes. This material includes, but is not limited to: books, computer programs, documents, films, pamphlets, reports, sound reproductions, studies, surveys, tapes, and/or training materials. Material which WSU provides and uses to perform this Agreement but which is not created for or paid for by the Department shall be owned by WSU or such other party as determined by Copyright Law and/or WSU’s internal policies; however, for any such materials, WSU herby grants (or, if necessary and to the extent reasonably possible, shall obtain and grant) a perpetual, royalty free, non-exclusive research license to the Department to use the material for the Department’s non-commercial internal purposes. 5.12 Dispute Resolution. Except as otherwise provided in this Agreement, when a dispute arises between the PARTIES and it cannot be resolved by direct negotiation, any party may request a dispute resolution panel (DRP). A request for a DRP must be in writing, state the disputed issues(s), state the relative positions of the PARTIES, and be sent to all PARTIES. PARTIES must provide a response within thirty (30) days unless the PARTIES mutually agree to an extension of time. Each party shall designate a representative. The representatives shall mutually select an additional member. The DRP shall evaluate the facts, Agreement terms, and applicable statutes and rules and make a determination by majority vote. The decision is binding on the PARTIES. Nothing in this Agreement shall be construed to limit the PARTIES’ choice of a mutually acceptable dispute resolution method in addition to the dispute resolution procedure outlined above. 5.13 Disclaimer. WSU MAKES NO EXPRESS OR IMPLIED WARRANTY AS TO THE CONDITIONS OF THE SCOPE OF WORK, SPONSORED PROJECT OR ANY INTELLECTUAL PROPERTY, GENERATED INFORMATION, OR PRODUCT MADE OR DEVELOPED UNDER THIS AGREEMENT, OR THE OWNERSHIP, Page 103 of 194 WSU DUA – Pasco Police Department Page 6 of 8 MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE SPONSORED PROJECT, SCOPE OF WORK, OR RESULTING PRODUCT. 5.14 Indemnity. Each party to this Agreement agrees to be responsible for the liabilities arising out of their own conduct and the conduct of their officers, employees, and agents. 5.15 Amendments. This Agreement may be amended by mutual agreement of the PARTIES. Such amendments shall be in writing and signed by personnel authorized to bind each of the PARTIES. 5.16 Assignment. The work to be provided under this Agreement, and any claim arising hereunder, is not assignable or delegable by either party in whole or in part, without the express prior written consent of the other party, which consent shall not be unreasonably withheld. 5.17 Notices. Any notice or communication required or permitted under this Agreement shall be delivered by overnight courier, or by registered or certified mail, postage prepaid and addressed to the party to receive such notice at the address given below or such other address as may hereafter be designated by notice in writing. Notice given hereunder shall be effective as of the date of receipt of such notice: WSU: Name/Title: David A. Makin Phone: (509) 335-2455 Address: Washington State University Department of Criminal Justice 719 Johnson Tower Email: dmakin@wsu.edu City/State/Zip: Pullman, WA 99164-3140 CITY: Name/Title: Brent Cook/Interim Chief of Police Phone: (509) 545-3437 Address: 215 W. Sylvester Email: cookb@pasco-wa.gov City/State/Zip: Pasco, WA 99301 5.18 Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the state of Washington and the venue of any action brought hereunder shall be in the Superior Court of Whitman County. 5.19 Compliance with Laws. The Department understands that WSU and the Department are subject to United States laws and federal regulations, including the export of technical data, computer software, laboratory prototypes and other commodities (including the Arms Export Control Act, as amended, and the Export Administration Act of 1979), and that the Department’s and WSU’s obligations hereunder are contingent upon compliance with applicable United States laws and regulations, including those for export control. 5.20 Severability. If any provision of this Agreement or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid Page 104 of 194 WSU DUA – Pasco Police Department Page 7 of 8 provision, if such remainder conforms to the requirements of applicable law and the fundamental purpose of this Agreement, and to this end the provisions of this Agreement are declared to be severable. 5.21 Order of Precedence. In the event of an inconsistency in this Agreement, the inconsistency shall be resolved by giving precedence in the following order: 1. Applicable statutes and regulations; 2. Terms and Conditions contained in the basic Agreement; 3. Attachment A–Scope of Work; 4. Any other provisions incorporated by reference or otherwise into this Agreement. 5.22 Complete Agreement. This Agreement contains all the terms and conditions agreed upon by the PARTIES. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the PARTIES hereto. 5.23 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Agreement. IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement as of the later of the signature dates included below. WASHINGTON STATE UNIVERSITY PASCO POLICE DEPARTMENT Name: Maria Hernandez Name: Harold Stewart Title: AVP of Research Operations Title: City Manager Date: Date: Page 105 of 194 WSU DUA – Pasco Police Department Page 8 of 8 ATTACHMENT A – SCOPE OF WORK ORSO # 141780-005 The proposed Scope of Work involves coding body-worn camera (“BWC”) footage of police interactions to understand the objective use of procedural justice and presence of incivility associated with police contacts. WSU will perform the following tasks: 1. Develop an objective instrument benchmarking the presence of procedural justice and incivility. 2. View, code, and analyze a sample of incidents involving police contacts with members of the public. The proposed work will be completed over the period of this Agreement. See, Section 5.1 of the Agreement. This research has received approval by the WSU IRB. Pending funding, proposed corresponding activities and deliverables include: Effort 1: Coding of BWC Footage • View, code, and analyze interactions associated with police contacts. Effort 2: Data Analysis • Data cleaning and preparation. • Data analysis. • Result evaluation. Effort 3 Summary Report • Submit a summary report of the benchmarking activity. Page 106 of 194 AGENDA REPORT FOR: City Council July 6, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Maria Serra, Director Public Works SUBJECT: Resolution No. 4767 - Approval for Application to Public Works Board for Pre-Construction Funding for Butterfield WTP Land Acquisition I. ATTACHMENT(S): Resolution No. 4767 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No.4767, authorizing the submittal of a Public Works Board Pre-Construction Loan Application for the Butterfield WTP Land Acquisition. III. FISCAL IMPACT: The City is pursuing a pre-construction loan from the Washington State Public Works Board (PWB) program. The PWB loan is a low interest loan that can be used for all any activity preceding construction. As currently advertised, the maximum award amount is $1 million per jurisdiction per year in this program. The loan has a 5-year term with an effective interest rate of 0.93%. for distressed communities. Since the City of Pasco meets the criteria for distressed community, up to 15% of the sought award could be in the form of a grant. IV. HISTORY AND FACTS BRIEF: Background The City’s potable water is provided by two different water treatment plants. The Butterfield Water Treatment Plant (WTP) was originally constructed in 1946 and produces approximately three-quarters of the City’s drinkable water. The Butterfield WTP provides treated water that is critical for residents, businesses, industrial users, and fire suppression systems. Drinking water plants have a typical service life of 50-80 years. Although the Butterfield WTP Page 107 of 194 has undergone several expansions and upgrades since its original construction, most of the core components of the plant were constructed between 65 and 75 years ago. The Butterfield WTP Facility Plan (Plan) was completed by Carollo Engineers. The development of the Plan involved a multi-year process that established performance goals for the plant, reviewed past water quality issues, evaluated plant performance and condition, evaluated alternatives for plant processes, and developed a Capital Improvements Plan (CIP) that included repair and replacement projects for the Butterfield WTP. The design engineering team, Jacobs, has begun work on the first set of improvements ("Early Works"), with additional phases forthcoming. The next step of the project includes the acquisition of land to place the new plant. A Burlington Northern Santa-Fe (BNSF) railroad owned property has been identified for acquisition. This property is located near the existing Butterfield Raw Water Pump Station and Drying Beds. It is the intent to place the new facility in this property, as doing so will decrease the likelihood of interruptions to service at the existing Butterfield WTP during construction and will represent saving by not having to construct around the existing operating plant in a more complex sequence. Impact The PWB Traditional Programs makes funds available to counties, cities, and special purpose districts to repair, replace, or create infrastructure. Projects funded through this program are subject to state laws and regulations. Applications for the PWB Loan Program require authorization of the legislative body. Should the City be selected as a recipient for a PWB pre-construction loan, the loan agreement will be subject to Council review and approval. V. DISCUSSION: Recommendation Staff recommends authorization for submission of a low-interest loan application to the Washington State Department of Commerce Public Works Board program for land acquisition activities for the Butterfield WTP project. Council action, in the form of a resolution, is sufficient to meet funding application requirements. This action is consistent with proposed path forward in proposed rate analysis, targeting $80 million in low interest loans for water infrastructure in the next few years. Constraints The deadline for this cycle of PWB funding is July 31st, 2026. Next Steps Page 108 of 194 If approved, City staff will proceed in submitting an application to the Washington State Department of Commerce PWB program. Alternatives  Council may deny authorization and direct staff to find alternative funding mechanisms for the project, or wait to next year's call for projects. In that case, all work on this PWB loan application would be halted/rescheduled accordingly. Page 109 of 194 Resolution - _____ - 1 Version 1.9.26 RESOLUTION NO. ______ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE SUBMITTAL OF A PUBLIC WORKS BOARD PRE- CONSTRUCTION LOAN APPLICATION FOR THE BUTTERFIELD WATER TREATMENT PLANT LAND ACQUISITION PROJECT. WHEREAS, the Butterfield Water Treatment Plant (Butterfield WTP), originally built in 1946, is nearing the end of its forecasted service life, and a newly constructed plant is proposed; and WHEREAS, the City of Pasco (City) adopted the Butterfield WTP Facilities Plan, which defines a capital improvement strategy to address capacity, water quality, and end-of-life deficiencies; and WHEREAS, the City is requesting permission to submit an application for a low-interest pre-construction loan with the Public Works Board (PWB) to fund the acquisition of land to place the newly constructed WTP; and WHEREAS, the PWB Pre- makes funds Construction and Construction Loan Program available to counties, cities, and special purpose districts to repair, replace, or create infrastructure. This program is funded through federal and state money and subject to state and federal regulations; and WHEREAS, the PWB loan application process requires documentation of City Council approval of the submittal of a PWB loan application; and WHEREAS, as currently advertised, PWB pre-construction loans have a 0.93% distressed interest rate; and WHEREAS, if the City is selected as a recipient for the PWB pre-construction loan, the loan agreement will be subject to City Council review and approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council, of the City of Pasco, hereby authorizes the submittal of the pre- construction loan application to the PWB for the Butterfield WTP Land Acquisition Project. Be It Further Resolved, that this Resolution shall take effect immediately. Page 110 of 194 Resolution - _____ - 2 Version 1.9.26 PASSED by the City Council of the City of Pasco, Washington, on this 20th day of July, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 111 of 194 AGENDA REPORT FOR: City Council TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Resolution No. 4768 – Right-of-Way Dedication and Reimbursement Agreement I. ATTACHMENT(S): Resolution 4768 Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION:City the authorizing 4768, No. Resolution approve to move I Manager to execute right-of-way dedication and reimbursement agreement Big Sky Developers LLC, a Washington Limited Liability Company for additional right-of-way dedication along Convention Drive. III. FISCAL IMPACT: General Fund - Approximately $516,424.05 2025-2026 Biennium budget includes $500,000 for this purpose. Remainder of the funds would need to be supplemented during the budget adjustment process. City-led future a that estimated For City former the context, Engineer realignment of the Burns Road and Convention Drive intersection would cost approximately $2 million. The proposed acquisition secures the needed right- of-way at a fraction of that cost. IV. HISTORY AND FACTS BRIEF: Background  The intersection of Burns Road and Convention Drive is currently misaligned City posing future traffic flow challenges. The former Engineer estimated a City-led correction at approximately $2 million.  Realigning Convention Drive North of Burns Road would require Page 112 of 194 relocating high-voltage utility poles to the north, an approach that is cost-prohibitive and carries substantial risk given the complexity of the infrastructure involved.  Staff recommended that the developer of the parcel in the northeast quadrant of the intersection acquire right-of-way and/or easement in the northwest quadrant to facilitate alignment without correcting the alignment.  The Developer constructs Convention Drive to a complete standard City cross-section, the for required otherwise dedication the exceeding development.  The proposed Agreement documents the Parties’ obligations regarding construction, dedication, acceptance, and payment for the Additional Dedication Area – generally the far side of the street, estimated at 58,353 square feet.  The Developer remains solely responsible for all design, permitting, construction, City’s the costs; and bonding, inspection, warranty payment obligation is limited to the Additional Dedication Area only. Impact (other than fiscal) Acquisition of the Additional Dedication Area allows Convention Drive to be in a complete, alignment at intersection correcting configuration, standard the Burns Road and directly improving public safety, traffic circulation, access, and long-term now street maintainability. Aligning the intersection preserves flexibility for future developments north of Burns Road, positioning the City to accommodate growth safely and cost-efficiently. V. DISCUSSION: Recommendation Staff recommends Council approve the Resolution authorizing the City and execute Reimbursement Dedication Manager the to Right-of-Way Agreement. The partnership addresses critical safety concerns at a misaligned intersection, avoids costly infrastructure challenges the City would otherwise face, and ensures the street is built to City standards while sharing the financial burden in a cost-efficient manner. Constraints (time or other consideration) The City’s payment obligation arises only after all conditions precedent are met, and the final payment amount depends on the surveyed square footage of the Additional Dedication Area but Council's approval is needed to provide predictability for the Developer. Next Steps If approved, the City Manager will execute the Agreement. The Developer will complete deliver the improvements, dedication required the street or Page 113 of 194 conveyance documents and acceptable title evidence, and record the dedication. Upon satisfaction of all conditions precedent, the City will remit payment within thirty (30) days and formally accept the right-of-way. Alternatives 1. Direct staff to renegotiate the terms of the Agreement, including the per- square-foot rate or conditions of payment. 2. Provide staff with alternate direction. 3. Do not approve the Agreement. Page 114 of 194 Resolution - ____ Agreement - 1 Version 1.9.26 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE RIGHT-OF-WAY DEDICATION AND REIMBURSEMENT AGREEMENT BIG SKY WASHINGTON LIMITED LIABILITY COMPANY A DEVELOPERS LLC, FOR ADDITIONAL RIGHT-OF-WAY DEDICATION ALONG CONVENTION DRIVE.. WHEREAS, a and plat condition of as (City) requires Pasco City of the developers, development approvals and pursuant to the Pasco Municipal Code, development standards, and applicable permit approvals, to design, construct, and dedicate certain street frontage, right-of- way, and public improvements adjacent to or serving their developments; and WHEREAS, the City has determined that acquisition of additional right-of-way along Convention Drive, beyond the dedication otherwise required for the development of Glacier Park Phase 1, Tract D (Franklin County Parcel No. 114330193), serves a public municipal purpose by allowing Convention Drive standard complete cross constructed to a to be -section, improving public circulation, access, maintenance, and long-term street functionality;; and WHEREAS, under the Right-of-Way Dedication and Reimbursement Agreement, Big Sky Developers LLC (Developer) will voluntarily dedicate the additional right-of-way area, estimated at approximately 58,353 square feet, and the City will compensate the Developer at $8.85 per square foot of the final dedicated area, an estimated total of $516,424.05, payable only after all conditions precedent are satisfied, including the required street improvements, completion of recording of the dedication, and delivery of acceptable title; and WHEREAS, due City after Pasco, Washington, has of the Council City the of consideration, determined that it is in the best interest of the City of Pasco to enter into a Right-of- Way Dedication and Reimbursement Agreement with Big Sky Developers LLC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the Right- of-Way and Reimbursement Dedication Agreement and Pasco between the City of Sky Big Developers LLC as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Agreement on behalf of the City of Pasco. Be It Further Resolved, that this Resolution shall take effect immediately. Page 115 of 194 Resolution - ____ Agreement - 2 Version 1.9.26 PASSED by the City Council of the City of Pasco, Washington, on this ____ day of ________________, 20__. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 116 of 194 {DPK4904-5952-6841;1/13206.000004/} RIGHT-OF-WAY DEDICATION AND REIMBURSEMENT AGREEMENT This Right-of-Way Dedication and Reimbursement Agreement (“Agreement”) is entered into as of July 20, 2026 (“Effective Date”), by and between the City of Pasco, a Washington municipal corporation and (“City”), LLC, Developers Big Sky company limited a Washington liability (“Developer”). The City and Developer are each a “Party” and collectively the “Parties.” RECITALS WHEREAS, Developer owns or controls certain real property located within the City commonly known as Glacier Park Phase 2and legally described in Exhibit A attached hereto (“Property”); and WHEREAS, Developer has applied for or received City approval to subdivide and develop the Property as Glacier Park Phase 2 Plat (“Plat” or “Development”); and WHEREAS, as a condition of the Plat and under the City’s municipal code, development standards, required and construct, design, is to approvals, permit applicable and Developer dedicate to the City certain street frontage, right-of-way, and public improvements adjacent to or serving the Development (“Required Street Improvements”); and WHEREAS, Developer is voluntarily choosing to construct Convention Drive at a width, alignment, or the required for otherwise dedication area exceeds configuration that the Development; and WHEREAS, the chosen construction of Convention Drive will reflect a complete cross- section of the City’s standard street design when complete; and WHEREAS, the additional right-of-way dedication area is generally located on the far side of the Street and is approximately one-half of that far-side area, as depicted in Exhibit B (“Additional Dedication Area”). The final area shall be determined by the approved civil plans, final plat, record of survey, or other conveyance document approved by the City; and WHEREAS, the City has determined that acquisition of the Additional Dedication Area serves a public municipal purpose by allowing the Street to be constructed and dedicated in a standard or more complete configuration, improving public circulation, access, maintenance, and long-term street functionality; and WHEREAS, the Parties desire to document their respective obligations regarding construction, dedication, acceptance, and payment for the Additional Dedication Area. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows: Page 117 of 194 {DPK4904-5952-6841;1/13206.000004/} 1. Definitions For purposes of this Agreement, the following terms have the meanings set forth below. 1.1 Additional Dedication Area means the portion of the right-of-way or real property interest that is not otherwise required to be dedicated by Developer as a condition of the Plat or Development, but that Developer voluntarily will dedicate or convey to the City so or alignment, width, agreed standard Street may constructed at be that the the configuration. The Additional Dedication Area is generally depicted in Exhibit B and shall be plat, right approved final established by finally the -of-way dedication document, statutory warranty deed, easement, or other instrument approved by the City. 1.2 Required Dedication Area means all portions of the Property, right-of-way, easements, or other real property interests that Developer is required to improve, dedicate, convey, and/or permit code, City Plat, the condition of Development, as City the to grant a approvals, frontage improvement obligations, SEPA mitigation, or other applicable requirements, excluding the Additional Dedication Area. The Required Dedication Area is generally depicted in Exhibit B and shall be finally established by the approved final plat, right-of-way or other easement, deed, warranty statutory document, dedication instrument approved by the City. 1.3 Required Street Improvements means all street, frontage, utility, stormwater, sidewalk, curb, public related signage, control, and landscaping, illumination, gutter, traffic improvements required for the Plat or Development under City code, standards, permit approvals, or approved civil plans. 1.4 Street Improvements means the Required Street Improvements together with any additional improvements necessary to construct the Street in the configuration shown on the approved plans. The City’s payment obligation under this Agreement is limited to payment does for payment include not and for Dedication Additional the Area construction, labor, materials, utility relocation, design, permitting, inspection, bonding, maintenance, or other improvement costs. 2. Developer’s Street Construction Obligations 2.1 No Reduction of Development Obligations. This Agreement does not reduce, waive, or modify code, Developer’s obligations under the Plat, Development approvals, City frontage improvement requirements, utility standards, stormwater requirements, SEPA mitigation, or any other applicable requirement, except as expressly stated herein. 2.2 Developer Cost Responsibility. Except for the City’s payment obligation for the Additional Dedication Area under Section 4, Developer shall be solely responsible for all costs associated with the design, permitting, construction, inspection, testing, bonding, warranty, correction, maintenance, and dedication of the Street Improvements. Page 118 of 194 {DPK4904-5952-6841;1/13206.000004/} 2.3 No City Construction Obligation. The City is not obligated to design, construct, manage, or supervise the Street Improvements. City review, inspection, or approval of plans or improvements shall not relieve Developer of responsibility for compliance with applicable requirements or for defects, deficiencies, or nonconforming work. 3. Dedication and Conveyance 3.1 Required Dedication Area. Developer shall dedicate or convey the Required Dedication Area to the City at no cost to the City, as required by the Plat, Development approvals, City code, and applicable law. 3.2 Additional Dedication Area. Developer voluntarily agrees to dedicate or convey the Additional Dedication Area to the City in exchange for the payment described in Section 4, subject to all conditions precedent in this Agreement. 3.3 Method of Dedication or Conveyance. The Additional Dedication Area shall be dedicated or conveyed determined as methods, of the more following one by City the to or acceptable by the City Attorney and Community and Economic Development Director or his/her designee: (a) right-of-way dedication deed; (b) permanent public street easement; or (c) other conveyance instrument acceptable to the City. 3.4 Legal Description and Survey. Developer shall provide, at Developer’s sole cost, all legal descriptions, exhibits, surveys, record drawings, and other materials reasonably required by of the and location and area Required Dedication Area confirm the the City to Additional Dedication Area. 3.5 Title. Developer shall convey or dedicate the Additional Dedication Area to the City free and interests, obligations, monetary leases, all liens, of clear encumbrances, security licenses, possessory rights, and other title exceptions except those approved in writing by the City. Developer shall provide title evidence acceptable to the City before payment. 3.6 Taxes and Assessments. Developer shall be responsible for all taxes, assessments, charges, and obligations attributable to the Additional Dedication Area arising before recording of the dedication or conveyance to the City. 3.7 Acceptance by City. Dedication or conveyance of the Additional Dedication Area shall not be deemed accepted by the City until accepted in writing by the City or accepted through the City’s approval and recording of the final plat or other conveyance instrument, as applicable. Page 119 of 194 {DPK4904-5952-6841;1/13206.000004/} 4. City Payment for Additional Dedication Area 4.1 Payment Obligation. Subject to the terms and conditions of this Agreement, the City shall pay Developer for the Additional Dedication Area in the amount calculated under this Section. 4.2 Payment Amount. The payment amount shall be: $8.85 per square foot multiplied by the final square footage of the Additional Dedication Area. 4.3 The Parties presently estimate that the Additional Dedication Area consists of approximately 58,353.00 square feet. 4.4 No Payment for Required Dedication. The City shall not pay Developer for the Required Dedication Area, any Street Improvements, or any dedication, improvement, mitigation, or obligation required as a condition of the Plat or Development. 4.5 No Payment for Construction Costs Unless Expressly Stated. The City’s payment is solely for the Additional Dedication Area and does not include reimbursement for construction costs, contractor labor, materials, frontage improvements, utility costs, design costs, charges, inspection fees, permit fees, financing costs, administrative costs, overhead, profit, delay costs, or any other cost. 4.6 Conditions Precedent to Payment. The City shall have no obligation to pay Developer unless and until all of the following have occurred: (a) All Street Improvements have been completed, inspected, and bonded consistent with all applicable city regulations; (b) Developer dedication documents or conveyance all and executed has delivered required by the City; (c) the dedication or conveyance of the Additional Dedication Area has been recorded; (d) Developer that the has provided title evidence acceptable to the City showing Additional Dedication Area is conveyed free and clear of unacceptable title exceptions; (e) Developer has paid all taxes, assessments, and charges attributable to the Additional Dedication Area through the date of conveyance or dedication; and (f) Developer is not in default under this Agreement, the Plat approvals, or applicable permit conditions. 4.7 Time for Payment. The City shall make payment within thirty days after satisfaction of all conditions precedent in Section 4.6 unless the City reasonably determines that additional documentation is required. Page 120 of 194 {DPK4904-5952-6841;1/13206.000004/} 4.8 Full Compensation. Payment under this Agreement constitutes full and complete compensation for the Additional Dedication Area. Upon payment, Developer waives and releases any claim for additional compensation, damages, interest, relocation benefits, severance damages, inverse condemnation damages, or other amounts arising from or related to the Additional Dedication Area, except for claims based on the City’s breach of this Agreement. 4.9 Public Purpose and Consideration. The Parties acknowledge that the City’s payment is made for a public municipal purpose and in exchange for the conveyance or dedication of constitute payment the intend that Parties Additional Area. Dedication the The adequate consideration and not a gift of public funds. 5. Permits, Approvals, and Regulatory Authority 5.1 No Permit Approval by Agreement. This Agreement does not grant, approve, vest, modify, or guarantee any land use approval, subdivision approval, engineering approval, building permit, right-of-way permit, utility approval, concurrency determination, or other governmental approval. 5.2 City Police Power Preserved. Nothing in this Agreement limits the City’s legislative, regulatory, permitting, inspection, enforcement, or police-power authority. 5.3 Independent Review. The City’s obligations under this Agreement are independent from the City’s regulatory review of the Plat and Development. Developer shall remain subject to all applicable laws, standards, and permit conditions. 6. Environmental Disclosure 6.1 Environmental Condition. Developer shall disclose to the City any known environmental condition affecting the Additional Dedication Area before conveyance. The City may terminate this agreement if an environmental condition is disclosed which is not acceptable to the City. 7. Liens, Claims, and Encumbrances 7.1 No Liens. Developer shall keep the Additional Dedication Area and Street Improvements free from liens, claims, and encumbrances arising from Developer’s work, contractors, subcontractors, suppliers, consultants, or financing. 7.2 Discharge of Liens. If any lien or claim is asserted against the Additional Dedication Area, Street Improvements, or City property arising from Developer’s obligations, Developer shall promptly discharge, bond over, or otherwise resolve the lien or claim at Developer’s sole cost. Page 121 of 194 {DPK4904-5952-6841;1/13206.000004/} 7.3 Withholding. The City may withhold payment under this Agreement until Developer has resolved reasonable City’s to encumbrance or the title claim, lien, any objection, satisfaction. 8. Indemnification 8.1 Developer Indemnity. To the fullest extent permitted by law, Developer shall defend, indemnify, and officers, officials, appointed its elected the harmless hold and City, against damages, demands, all claims, volunteers and agents, employees, from and losses, liabilities, penalties, fines, costs, expenses, and attorney fees arising out of or related to Developer’s performance or failure to perform under this Agreement. 8.2 Limitations. Developer’s indemnity shall not apply to the extent a claim is caused by the sole or results by the concurrent from caused the a If City. of negligence claim is negligence of Developer and the City, Developer’s indemnity obligation shall apply only to the extent of Developer’s negligence, fault, or responsibility, subject to RCW 4.24.115. 8.3 Industrial Insurance Waiver. Solely for purposes of enforcing the indemnity obligations in this the granted be may that under any waives Developer Agreement, immunity Washington Industrial Insurance Act, Title 51 RCW, but only to the extent necessary to indemnify the City as required by this Agreement. The Parties acknowledge that this waiver has been mutually negotiated. 8.4 Survival. This Section survives completion, payment, dedication, acceptance, termination, or expiration of this Agreement. 9. Compliance With Law 9.1 General Compliance. Developer shall comply with all applicable federal, state, and local laws, codes, ordinances, regulations, permit conditions, and City standards. 9.2 Prevailing Wage and Public Works Requirements. The Parties intend that the City’s for not Area and Dedication Additional the Agreement is this under payment for construction labor or construction reimbursement. To the extent any prevailing wage, retainage, bonding, contractor registration, public works, or other labor or construction requirement applies to any work performed by Developer or its contractors, Developer shall be solely responsible for compliance. The City makes no representation to Developer regarding the applicability or non-applicability of such requirements. 9.3 Nondiscrimination. Developer shall comply with all applicable nondiscrimination laws in performing this Agreement. 10. Public Records and Audit Page 122 of 194 {DPK4904-5952-6841;1/13206.000004/} 10.1 Public Records. Developer acknowledges that this Agreement and records related to the City’s payment and acquisition of the Additional Dedication Area may be public records subject to disclosure under the Washington Public Records Act, chapter 42.56 RCW. 10.2 Records. Developer shall maintain records sufficient to document compliance with this Agreement for at least six years after final payment or for any longer period required by law. 10.3 Audit. Upon reasonable notice, Developer shall provide the City access to records reasonably the and Agreement this with Developer’s verify to necessary compliance conditions for payment. 11. Default and Remedies 11.1 Default. A Party is in default if it fails to perform a material obligation under this Agreement and does not cure the failure within thirty days after written notice from the non-defaulting Party. If the default cannot reasonably be cured within thirty days, the defaulting Party shall not be in default if it begins cure within the thirty-day period and diligently pursues cure to completion. 11.2 City Remedies. In addition to any other remedy available at law or equity, if Developer defaults, the City may withhold payment, seek specific performance, seek damages, or pursue any other lawful remedy. 11.3 Developer Remedies. If the City defaults, Developer may seek payment of amounts due under this Agreement after satisfaction of all conditions precedent, specific performance, or other remedies available at law or equity, subject to applicable limitations on claims against municipal corporations. 11.4 Consequential No Damages shall be liable to the other for Neither Party . consequential, speculative, or punitive damages arising from this Agreement. 12. Assignment and Binding Effect 12.1 Assignment. Developer may not assign this Agreement without the City’s prior written consent, which shall not be unreasonably withheld if the assignee assumes all obligations under this Agreement and has acquired the Property or the relevant portion thereof. 12.2 Binding Effect. This Agreement binds and benefits the Parties and their respective successors and permitted assigns. 13. Notices Page 123 of 194 {DPK4904-5952-6841;1/13206.000004/} All notices under this Agreement shall be in writing and shall be delivered personally, by nationally recognized overnight courier, by electronic mail, or by certified mail, return receipt requested, to the following addresses: City: City of ____________ Attn: ______________________ Address: ______________________ Email: ______________________ With a copy to: City Attorney Address: ______________________ Email: ______________________ Developer: Attn: ______________________ Address: ______________________ Email: ______________________ Notice is effective upon personal delivery or electronic email, one business day after deposit with an overnight courier, or three business days after mailing by certified mail. 14. Dispute Resolution; Governing Law; Venue 14.1 Meet and Confer. Before filing litigation, the Parties shall make reasonable efforts to meet and confer through representatives with authority to resolve the dispute. 14.2 Governing Law. This Agreement shall be governed by the laws of the State of Washington. 14.3 Venue. Venue for any action arising from this Agreement shall be in the superior court of Franklin County, Washington. 14.4 Attorney Fees. The prevailing Party in any action to enforce this Agreement shall be entitled to recover its reasonable attorney fees and costs, including fees and costs on appeal, to the extent permitted by law. 15. Miscellaneous Page 124 of 194 {DPK4904-5952-6841;1/13206.000004/} 15.1 Entire Agreement. This Agreement, including all exhibits, constitutes the entire agreement between the Parties regarding the subject matter herein and supersedes all prior discussions, negotiations, and understandings regarding that subject matter. 15.2 Amendment a by only amended written instrument may Agreement This . be signed by both Parties. 15.3 No Waiver. No waiver of any breach or default shall constitute a waiver of any other breach or default. No waiver is effective unless in writing and signed by the Party against whom waiver is asserted. 15.4 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in effect unless the invalid provision is material to the Agreement’s overall purpose. 15.5 Interpretation. This Agreement shall be interpreted according to its fair meaning and not strictly for or against either Party. 15.6 No Third-Party Beneficiaries. This Agreement is for the benefit of the Parties only and does subcontractors, contractors, including party, not create in any rights third lenders, purchasers, lot owners, adjacent owners, or members of the public. 15.7 Signatures and Electronic Counterparts in executed be may Agreement . This counterparts and by electronic signature, each of which shall be deemed an original and all of which together constitute one instrument. 15.8 Authority. Each person signing this Agreement represents and warrants that they have authority to sign on behalf of the Party for whom they sign. 16. Exhibits The following exhibits are incorporated into this Agreement: Exhibit A – Legal Descriptions of Property Exhibit B – Depiction and Legal Description of Additional Dedication Area and Required Dedication Area SIGNATURES IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. CITY: CITY OF PASCO, a Washington municipal corporation Page 125 of 194 {DPK4904-5952-6841;1/13206.000004/} By: _______________________________ Name: Harold Stewart Title: City Manager Date: ______________________________ Approved as to form: By: _______________________________ City Attorney DEVELOPER: Big Sky Developers LLC a Washington limited liability company By: _______________________________ Name: Brad Seabaugh Title: ______________________________ Date: ______________________________ ACKNOWLEDGMENTS STATE OF WASHINGTON County of ____________ I certify that I know or have satisfactory evidence that ______________________ is the person who appeared before me and said person acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument, and acknowledged it as the ______________________ of the City of ____________, a Washington municipal corporation, to be mentioned in purposes and uses the for entity of such act voluntary and free the the instrument. Dated: ______________________ Notary Public in and for the State of Washington Printed Name: ______________________ My appointment expires: _____________ STATE OF WASHINGTON County of ____________ Page 126 of 194 {DPK4904-5952-6841;1/13206.000004/} I certify that I know or have satisfactory evidence that ______________________ is the person who appeared before me and said person acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument, and acknowledged it as the ______________________ of ______________________, a ______________________, to be the free and voluntary act of such entity for the uses and purposes mentioned in the instrument. Dated: ______________________ Notary Public in and for the State of Washington Printed Name: ______________________ My appointment expires: _____________ Page 127 of 194 {DPK4904-5952-6841;1/13206.000004/} Exhibit A Franklin County Parcel Number: 114330193 Legal Description: Glacier Park Phase 1 Tract D Page 128 of 194 C O N V E N T I O N D R I V E G L A C I E R L A N E 3200 SF 128 3200 SF 129 3200 SF 130 3200 SF 131 3200 SF 132 3200 SF 133 3200 SF 134 4000 SF 135 4000 SF 136 4000 SF 137 4000 SF 138 4000 SF 139 4000 SF 140 5354 SF 141 16 0 0 2 S F TR A C T B 16 0 0 2 S F TR A C T B KAU TRAIL RD Exhibit B Page 129 of 194 C O N V E N T I O N D R I V E 3427 SF 120 3208 SF 121 3200 SF 122 3200 SF 123 3200 SF 124 4531 SF 125 3989 SF 126 3200 SF 127 3200 SF 128 16 5 8 2 S F TR A C T A 16 0 0 2 S F TR A C T B Page 130 of 194 AGENDA REPORT FOR: City Council March 16, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Resolution No. 4769 - Targeted Urban Area (TUA) Tax Exemption Program I. ATTACHMENT(S): Resolution 4769 Proposed Industrial Zone Map II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4769, declaring intent to designate portions of the city’s industrial zones as a Targeted Urban Area for the purpose of an industrial and manufacturing tax exemption and establishing a public hearing on 7:00 p.m. on Tuesday, September 8, 2026. III. FISCAL IMPACT: Unknown IV. HISTORY AND FACTS BRIEF: Background Targeted Urban Areas (TUA’s) are a new recruitment, retention, and expansion tool available in Washington per Chapter 84.25 of the Revised Code of Washington. It allows cities and counties to offer certain exemptions from property taxes for up to ten years the value of new construction of industrial and manufacturing facilities in qualifying designated geographic areas. exemption tax property (TUA) Urban Targeted State's Washington Area program, codified under Chapter 84.25 RCW became effective July 1, 2022. The manufacturing program's stated purpose is to encourage new and industrial development on undeveloped or underutilized lands zoned for those uses. It does so by allowing cities and counties to exempt the value of newly constructed manufacturing facilities from property taxation for a period of ten Page 131 of 194 years. The exemption applies only to the improvement value of qualifying new construction; land value and non-manufacturing-related improvements such as administrative offices are not included. To qualify, a company must: 1. Certify that the availability of the tax exemption is the deciding factor in choosing to locate in Washington State; commonly referred to as the "but-for" test. 2. Commit to creating a minimum of 25 new family-living-wage jobs averaging at least $23 per hour with health care benefits, construct a minimum of 10,000 square feet of new manufacturing space (not an addition to an existing structure) 3. Meet a minimum improvement value of $800,000 as defined under U.S. Department of Labor Division D (Manufacturing) or Division E (Transportation) classifications. The City of Richland was the first jurisdiction in Washington to implement the TUA County 2023. early in Benton its adopting program exemption, subsequently followed by adopting a matching TUA boundary, a coordination that proved administratively essential, as the two jurisdictions learned that non- identical boundaries create significant implementation complications. Council directed staff to move forward with legal steps to implement TUA during April 13, 2026 Council Workshop meeting where Stephen McFadden from Port of Pasco, John Rosenau from Franklin County Assessor, and Amanda Wallner from City of Richland provided their expert opinion on the matter. Additionally, City staff contacted Franklin County to gauge its interest in partnering with the City to establish matching TUA boundaries, which would streamline implementation of the program. To date, no response has been received from the County. Impact (other than fiscal) Adopting a Targeted Urban Area designation would position Pasco as a more competitive destination for manufacturing investment at a time when the region's industrial land supply represents a meaningful economic development asset. The program directly advances the Council's goal of expanding family- wage a to exemption the tying Pasco in opportunities employment by mandatory job creation threshold. Because the exemption applies only to new construction value and does not reduce any existing assessed value on the tax rolls, no current property owner or taxing district experiences a loss of existing revenue. property shift: tax a However, does program the produce Washington's levy rate system means that exempting new assessed value from the pool effectively spreads the existing levy, causing a rate increase for other impact, property owners during the exemption period. This while generally small at the individual level, is real and should be communicated transparently to the public should Council elect to move forward. The overall Page 132 of 194 tax shift impact on the broader property-owning population varies depending on several factors, including the value of any property tax exemptions granted to the manufacturing company, the assessed valuation of individual properties, and changes to the City's property tax rate over the relevant period. V. DISCUSSION: Recommendation Staff recommends the resolution as presented; setting a public hearing on September 9, 2026 Council Regular meeting. Constraints Two implementation constraints deserve Council's attention before proceeding. 1. Franklin County Assessor's Office is currently engaged in implementing Tax Increment Financing (TIF) within their assessment software, and that system does not currently support the TUA program. Should the City move forward, the County will need to engage their software vendor to develop TUA compatible functionality, a process that may introduce lead time between Council action and full program implementation. 2. Experience shared by the Benton County Assessor's Office underscores that the City's TUA boundary and the County's TUA boundary must be identical for the program to function effectively. Misaligned boundaries create administrative complexity and risk of error that could undermine the program's credibility with prospective applicants. As mentioned above, City has not received a response from the County on this matter. Next Steps If Council provides direction to proceed, City will take the following steps in sequence. 1. Identify contiguous parcels within City limits that are zoned for industrial and definition statutory the of and uses manufacturing meet undeveloped or underutilized land. - Completed 2. Initiate direct engagement with Franklin County Assessor's Office and the TUA shared a align on Commissioners County of Board to and boundary, discuss the County's software readiness timeline, determine whether the County intends to adopt a parallel resolution extending the exemption to county property taxes. - Completed 3. Once those foundational elements are in place, staff will return to Council with a proposed Resolution of Intent to designate the Pasco TUA and schedule the required public hearing. The public hearing notice must be published for two consecutive weeks, no more than 30 days before the hearing date. - In progress. 4. Additional outreach to community if Council desires. 5. Final Council action in the form of an ordinance or resolution formally establishing the Pasco Targeted Urban Area would follow the public Page 133 of 194 hearing. 6. Staff prepares a program plan for Council review to outline program process from application to tax exemption. Alternatives: 1. Take no action at this time, preserving the ability to revisit the program at a future date. Page 134 of 194 Resolution - Intent to Set Public Hearing for TUA - 1 Version 1.9.26 RESOLUTION NO. ______ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, THE OF TO DESIGNATE INTENT DECLARING PORTIONS CITY’S INDUSTRIAL ZONES AS A TARGETED URBAN AREA FOR THE PURPOSE OF AND AN INDUSTRIAL AND MANUFACTURING TAX EXEMPTION ESTABLISHING A PUBLIC HEARING DATE. WHEREAS, the Washington State Legislature finds that it is critical for Washington State to promote its continued strength in the fields of aerospace, technology, biomedical and other industries that will provide family-wage job growth; and WHEREAS, the Washington State Legislature also finds that many cities planning under the Growth Management Act, Ch. 36.70A RCW, have designated and zoned lands for industrial and manufacturing use; and WHEREAS, the industrial and manufacturing industries provide family living wage jobs; and WHEREAS, in 2025, approximately 30% of Franklin County workers earned less than the state-identified family living wage of $23.00 per hour; and WHEREAS, Council finds that there are insufficient family living wage jobs for its residents. WHEREAS, Chapter 84.25 RCW opportunity to governments with the provides local exempt certain properties from property taxes for the value of new construction of industrial and manufacturing facilities in targeted areas to encourage new manufacturing and industrial uses on undeveloped or employment to increase a as means for zoned underutilized lands said uses opportunities for family living wage jobs (referred to as a Targeted Urban Area or TUA); and WHEREAS, an area of approximately 8,100 acres as shown in Exhibit A attached hereto, is zoned Light Industrial (I-1), Medium Industrial (I-2), and Heavy Industrial (I-3). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: the That to designate City intends approximately 8,100 A, on Exhibit shown acres as attached hereto as a Targeted Urban Area (TUA), for the purpose of allowing property owners within this a and receive to apply for who qualify under area Ch. 84.25 RCW property tax exemption for the value of new construction of industrial and manufacturing facilities., and That the 8,100 manufacturing acres shown on Exhibit A are zones for industrial and purposes. Page 135 of 194 Resolution - Intent to Set Public Hearing for TUA - 2 Version 1.9.26 That creation of Targeted Urban Area as authorized under Ch. 84.25 RCW will assist in the new construction of industrial/manufacturing facilities that will provide employment for family living wage jobs. A public hearing to consider this intended action, as required pursuant to RCW 84.25.060, will be held during the regularly scheduled Pasco City Council meeting on September 8, 2026 at or after 7:00 p.m. Be It Further Resolved, that this resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this ____ day of ________________, 20__. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 136 of 194 C O LUM B IA R I V E R S N A K E R I V E R N 3 R d A v e E Ain s w o r t h A v e Us 3 9 5 S U S 3 9 5 S U S 3 9 5 N Ja s o n A v e N 2 4 T h A v e W C l a rk St S 2 8 Th A ve E Hillsboro St N 4 Th A v e W A S t W Colum b i a S t W Pearl St Ro a d 4 4 W Wernett Rd Herita g e B l v d E B roadway S t E Lewis St Ro a d 3 6 S 1 0 T hAve N 5 T h A v e E Do c k S t SOreg o n A v e N O r e g on Ave N 1 4 Th A ve N R a i l r o a d A v e W Court St I n d u s t r i a l Way Pasc o K a h l o t u s R d Clark Rd G l a d e N o r t h R d N Capitol Av e US 3 9 5 N N 20Th Ave W Le w i s S t NCo m m ercia l A v e I-18 2 E I-182 W U S 1 2 E U S 1 2 W nTargeted Urban Area =oning Legend Roads Major Minor TUA City Limits Urban Growth Areas Parcels EXHIBIT A Page 137 of 194 AGENDA REPORT FOR: City Council March 30, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 7/20/26 FROM: Harold Stewart, City Manager City Manager SUBJECT: Agreement – Harris Road Realignment Agreement with VWA-Pasco, LLC, ("Visconsi") for Broadmoor Development I. ATTACHMENT(S): Proposed Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move that the City Council authorize the City Manager to execute the Harris Road Realignment Agreement with VWA-Pasco, LLC., ("Visconsi") in substantially the form presented, with authority to make minor administrative or non-substantive revisions as may be necessary prior to execution. III. FISCAL IMPACT: Revenue: Traffic Impact Fee: $870 thousand Tax Increment Financing: $3.0 million Expense: Engineer's Cost Estimate: $3.8 million IV. HISTORY AND FACTS BRIEF: Background The Broadmoor Area in northwest Pasco is a 1,200-acre master-planned district identified as a critical growth corridor in the City’s Comprehensive Plan. Strategically envisioned a as is Broadmoor 182, Interstate near located regional hub for commercial, residential, and mixed-use development, including retail centers, restaurants, medical offices, and up to 5,000 residential units. The multimodal emphasizes connectivity, Master Broadmoor Plan by transportation, and sustainable urban design, supported significant infrastructure investments. It has been critical for the City to ensure that the Page 138 of 194 transportation infrastructure within this area is adequate for foreseeable future. To fund infrastructure improvements, the City has utilized Tax Increment Financing (TIF), ensuring these improvements occur without increasing taxes on current residents. Tax Increment Financing (TIF) in Washington allows cities, counties, and port districts to fund public infrastructure improvements by capturing the increase in property tax revenue (the “increment”) that results from rising property values within a designated area after development. Instead of raising new taxes, the future growth in property taxes is allocated to pay for public improvements or repay bonds. State property taxes and voter-approved school levies are excluded from this calculation. Projects planned to be funded by Tax Increment Financing (TIF) include the expansion of Broadmoor Boulevard, extension of Sandifur Parkway, new Road 108, and major upgrades to the Road 100/I-182 interchange. Harris Road The existing roadway configuration of Harris Road does not adequately support anticipated traffic volumes or connectivity required for large-scale commercial development and creates safety issues due to its proximity to soon to be four way intersection on Sandifur Parkway and Broadmoor Boulevard. Due to these factors, City has identified need to reroute Harris Road to Road 103 within the Broadmoor area. More information on traffic circulation in Broadmoor area can be found on Broadmoor Area Master Plan Section 2.2.3 Access and Circulation (Page 26) https://www.pasco- wa.gov/DocumentCenter/View/64884/Broadmoor-Master-Plan-Adopted-April- 17-2023-?bidId=. Council approved Ord. 4834 vacating the old Harris Road ROW at the May 4, 2026 Regular requires agreement meeting. The Council City proposed Visconsi to dedicate the right-of-way necessary for the new Harris Road alignment to the City at no cost upon closing of the property purchase, but no later than February 15, 2027, in accordance with the agreement. V. DISCUSSION: Discussion Visconsi, is a fourth generation, family-owned developer and manager of retail and other properties and a provider of real estate advisory services. They operate coast to coast and are under contract to develop south east end adjacent to Broadmoor Blvd as shown below in preliminary site plan (which is subject to change prior to finalization of plans). the at acreage develop land agreement purchase a has to Visconsi, intersection of Broadmoor and Sandifur. City staff and representatives from Page 139 of 194 Visconsi have been discussing and negotiating the need to realign Harris Road to support the commercial development and how it effects the site design of the property. The City has started scoping and design efforts that is expected to be complete in the fall of 2026, allowing for bidding in late 2026/early 2027. If approved by Council award of construction bid is scheduled for early 2027 and construction beginning in Spring 2027. Completion of construction is targeted for no later than 2028. This timeline allows for Visconsi to secure tenant agreements in 2026, construction of buildings in 2027, and tenant occupancy as soon as late 2027. The proposed agreement with Visconsi Companies sets a framework for cost- sharing, if necessary, and coordinates the Harris Road realignment to ensure timely investment, private supports This delivery. infrastructure alignment accelerates economic development, and advances the City’s goal of realigning Harris Road. Key aspects of this development agreements are that:  The City will design and construct the Harris Road realignment in accordance with State law, City codes, and the Broadmoor Master Plan. Landscaping responsibility lies with Visconsi along the east side of the realignment 2 adjacent to Phase 1, with future Phase owners responsible for landscaping on the west side upon development.  The Harris Road realignment is a planned public infrastructure project identified in the City's adopted Six-Year Transportation Improvement Program and funded through the Broadmoor Tax Increment Financing (TIF) program. The project is not a financial incentive or subsidy for this development, the that improvement supports planned a but public transportation network and long-term growth of the Broadmoor area.  Construction is funded through previously authorized TIF bond proceeds and does waive, not agreement Fees. Impact Transportation The reduce, or reimburse any fees otherwise required of the development. Visconsi remains responsible for paying all applicable Transportation Impact Fees, permit fees, utility connection fees, and other development-related costs required by City code. As this and future developments occur within the Broadmoor TIF district, the resulting increase in property tax revenues will contribute toward repayment of the public infrastructure investment.  The City will complete construction within 28 months of award of the construction contract, provided the conditions outlined in the agreement have been satisfied, including acquisition of the property by Visconsi and dedication of the required right-of-way.  Visconsi will dedicate the required 80-foot-wide right-of-way to the City at no cost upon closing of the property purchase, but no later than Page 140 of 194 February 15, 2027.  Cost Sharing Framework (if bids come over the engineer estimate) o Less than 10% - City covers full cost. o 10% to 20% - City and Visconsi each pay 50% of this overage cost. o More than 20% to 30% - Visconsi pays 100% of this overage cost. o If bids exceed 30%, the City may reject all bids and terminate the agreement. If the City later cancels the project after receiving the right-of-way dedication, Visconsi may construct the improvements and potential and fee credits transportation pursue impact developer reimbursement as allowed by City code. Realignment to Harris Road to Road 103 is a project included in City most recent Transportation Impact Fee project list. Transportation Impact Fees only pay directly growth. to related cost Allocated the of portion for project Transportation Impact Fee cost for this project per the Transportation Impact Fee visit study the on information please For $869,250. is study more https://www.pasco-wa.gov/1512/Transportation-Impact-Fees. Engineering estimates for the project is $3.80 million. City issued bonds in July of 2024 (link to agenda issuance bond https://pasco.civicweb.net/document/297669/Ordinance%20No.%204720%20- %20Issuance%20of%202024%20Bond%20- %20Li.pdf?handle=D6F3D969AD4B47E4856EB63CE1CCFF4A) for $39,000,000. Broadmoor Properties and Pasco Public Facilities District have backstopped some of the debt for projects that supported their Development. They pay for 100% of debt service for Sandifur Pkwy Extension to Road 108 and Road 108 Extension to Harris Road. Broadmoor Properties also entered into an agreement with the City that backstops $5.5 million in any future projects. The agreements allow for the City to bill the partners for any deficit in TIF revenues till the TIF revenues are sufficient to support debt service. Once the TIF revenues exceed debt service, City is obligated to make payments back to the partners accordingly. The agreements are attached to the staff report. City has received favorable bids for past and current projects, resulting in remaining funds of nearly $13 million (including $5.5 million for future projects). Staff is recommending usage of combination of Tax Increment Financed bond proceeds and Transportation Impact Fee to complete this project. Recommendation Staff recommends City Council authorize the City Manager to execute the Harris Road Realignment Agreement with VWA-Pasco, LLC., ("Visconsi") in substantially the form presented, with authority to make minor administrative or non-substantive changes as may be necessary prior to execution. Page 141 of 194 Alternatives Council can reject the development agreement and direct staff to revise certain elements of the agreements. Impact The developer needs the agreement with the City to continue recruiting prospective businesses to the site. Delay in approval of the agreement could result in delays to, or loss of, future commercial development opportunities Page 142 of 194 1. . . . .. . . " a n . . .. .. . _I "1 . I I. . I. _ I I. I I I n . . 1 . . . . L I .. I . II . . Ja m . . . “ I_ . . h 1 . . . n _ ? . . _ m u . . . . . u . u _ . . I . . f _ . . . . _ n f . . . . . . . a u w .. . I . . . . . . r r . ” . . . . . n . . . rI I I . . .. . . . . . I I I .. . 1 . . u . . 1 LI . .. . . I . .I I H I L I .. . . .. .. .I .| . I .I .“ I . I. . -I W I I I h I - “I I- " I II " II I II - II - . .. . " . .. . a I . _ u n- . u . . II II . .“ r . . . .. u. .. u . . . . . . .. . .. . — I . .. . . I I. . . ” . . . . . l .. I. I H _I . — . . H .. . . .. I .. I. u. .. .... .. I ._ .. . n . .. . _ . . 1| 1 .— . .. . .— I. .u I I . . .. .. .u I .LI . . . — . I. .I .". . I r .. ...— L. . u. . .— ... . .. I .. .. . . L . . I1 . q I . .. . I I. . .. . . .I . .. . I . . . I .— .m x . . . . I. I . n .. .u . .” I II . ._ .. .. I I I u. I II .L I I I II . . .1 .u I l l l I II I I .I . . . u _ . . . _ l u . .- ” & H I. . . . . . L I - .I .. m . .n .. .. I . .. . . . .. u Ew ? ? i ? t l 3% \O O O \ ] O \ U l - D U J N 10 11 12 13 14 15 16 17 18 19 2O HA R R I S RO A D RE A L I G N M E N T AG R E E M E N T Th i s Ha r r i s Ro a d Re a l i g n m e n t Ag r e e m e n t (“ R e a l i g n m e n t Ag r e e m e n t ” or “Ag r e e me n t ” ) is en t e r e d in t o th i s th i s da y of 20 2 6 , by an d be t w e e n th e Ci t y of a Wa s h i n g t o n St a t e Mu n i c i p a l Co r p o r a t i o n (“ C i t y ” ) , an d VW A - P a s c o , LL C , an Oh i o li mi te d li a b i l i t y co m p a n y (“ V i s c o n s i ” ) . Th e Ci t y an d Vi s c o n s i ar e ea c h a “P a r t y ” an d co l l e c ti v e l y th e “P a r t i e s ” to th i s Ag r e e m e n t . I. RE C I T A L S A. Vi s c o n s i is a pa r t y to a pu r c h a s e an d sa l e ag r e e m e n t wi t h Br o a d m o o r Pr o p e rt i e s , LL C (“ B P ” ) , th e ow n e r of pr o p e r t y ge n e r a l l y kn o w n as Lo t 10 of Re c o r d Su r v e y No . 19 5 6 3 16 an d/or Fr a n k l i n Co u n t y Ta x Pa r c e l No . 11 5 2 1 0 0 4 0 (t h e “P r o p e r t y ” ) . B. Vi s c o n s i st a t e s th a t th e ab o v e re f e r e n c e d pu r c h a s e an d sa l e ag r e e m e n t al l o w s to de l i n e a t e an d pu r c h a s e a po r t i o n of Lo t 10 wh i c h is re f e r r e d to in th i s Ag r e e m e n t as P ha se 1an d de p i c t e d in Ex h i b i t A. C. Th e Ci t y of Pa s c o de s i r e s to co n s t r u c t a re l o c a t i o n of Ha r r i s Ro a d ac r o s s a of th e Pr o p e r t y wi t h i n Ph a s e 1. Th e Ci t y ha s in c l u d e d Pr o j e c t No . 52 (H a r r i s Ro a d Re a l i g nm e n t ) in it s 20 2 5 - 2 0 3 0 Si x - Y e a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m (“ S T I P ” ) . F G : 11 04 77 72 2. 1 Page 143 of 194 WE I I' I l t ? - i - _J - a - F ? - l -. _ - . . - .' r . - ' ! - . ' - _J . - . . E - _ .- _ .1 . . - I. I. .I I. II I I I' l l . - . I -. .I 'I : I I “4 . 1 % " I I: I- . .I - . . |. ' ' .- - r. .I - In n - f .' - '_ I I- J - I II I I. . . IE " - I- . :_ . - #? q I .| _ ”| '. _ Il l a ' r g ' é - Tg i i - ? t g : _ - . . ' I - l l I. I I -- I I l I I. l l I l _ . II - T p n I ' T .E - I - I I : . -: . : ' } r l " - : ' I I '- _ - . ' . I . " . " '1 ‘ . . Il a . Fi ' H J I I - I I E . . . I I H ' _ | ' I : - ; .r j . - - . - . : : . - ' . i - - . - . - - - I -- . E- __ . : 5 : EL ; ' r .- :' . 1 | ' = -. I _ .. __ r -: _ I. II . I - r . ' .. _ _ . _ ‘ _ . _- . ' -- "- . r {I J- ." . . ' . " . I . I . ' I . '_ I _ ' - I. - . ' -. . I' I _- . r . . - h . I + _ - . -' - '. - .. - I .- -I - I .. - 'l -. .' I I I '- ' I - I II I. l 'I - '. . - .- ' '- I - '. . - -. - - . ._ ' - . - 1 -- - I. l- r I .. _ I I I. 'l I I. - I - '_ I - ' . . I ' . -. - a I I I I I. .- _ -. I - _ I_ .l I. - I _l . I ': . - -- . . ._ ._ -. .1 . '- I I I I . 10 ll 12 13 14 15 16 17 II . AG R EE M EN T 1. Ha r r i s Ro a d Re a l i g n m e n t . Th e wi l l de s i g n an d co n s t r u c t are a l i g n m e n t of Ha r r i s Ro a d in ac c o r d a n c e wi t h Ci t y co d e s , pl a ns , sp ec i?ca ti o ns ,an d re g u l a t i o n s , an d assh o w n in ST I P Pr o j e c t No . 52 , su b j e c t to th e te r m s an d co nd it i on s of th i s Ag r e e m e n t . Th e pr o c e s s fo r de s i g n an d co n s t r u c t i o n of th e Ha r r i s Ro a d re a l i g n m e n t i sas fo l l o w s: a. Th e Ha r r i s Ro a d Re a l i gn m e nt sh a l l be ce n t e r e d on th e in t e r s e c t i o n of Sa n d i f u r Pa r k w a y an d Ro a d 10 3 , an d ha v e a n 8 0- fo ot -w id eri g h t - o f - w a y an d sh a l l be inth e lo c a t i o n , al i g n m e n t an d wi t h th e im p r o v e m e n t s g e n e r al l yde p i c t e d inth e Si t e Pl a n at t a c h e d as Ex h i b i t A (t h e “R e a l i g n m e n t ” ) . Th e Re a l i g n m en t de s ig n wi l l pr o v i d e fo r tw o co n n e c t i o n s toan in t e r i o r ro a d in t e r n a l to Ph a s e 1 (a co n c e p t u a l on l y isin c l u d e d inEx h i b i t A) . Th e Ci t y D. Th e Pr o p e r t y is cu r r e nt l y de s ig n at e das“C o m m e r c i a l ” un d e r th e Pa s c o Co m p r e h e n s i v e Pl a n an d is co m m e r c i a l l y zo n e d th e Pa s c o Mu n i c i p a l Co d e (P M C ) . Vi s c o n s i pr o p o s e s to de v e l o p Ph a s e I of th e Pr o p e r t y w it hami x e d - us e de v e l o p m e n t co n s i s t i n g of re t a i l , gr o c e r y , re s t a u r a n t , an d me d i c a l of ? c e (“ th e De v e l o p m en t ” ) . Th e De v e l o p m e n t wi l l re q u i r e an d be n e ? t fr o m re l o c a t i o n of Ha r r i s aspr o p o s e dby th e Ci t y ’ s ST I P Pr o j e c t No . 52 . E. Th e pa r t i e s de s i r e toen t e r in t o th i s Ag r e e m e n t tofa c i l i t a t e th e Ha r r i s Ro a d Re a l i g n m e n t . RE A L I GN M E NT AG R E E M E NT Pa g e 2 24 06 / 3 0 / 26 F G : 110 4 7 77 2 2 .] Page 144 of 194 ?L f ' I F .- .I ' I . ‘? m __ - ,NI L E ; $5 , ? ? ? .l I? T - i ‘ - _. T . I I ga r - H I E . It ‘ l l - 5 1 9 % . ? II + ._ I. I - I I I t '_ I . I I I 5 : E I : : " " ' '- '- . "" ' L ‘l l - -| I | I - k. . .- . -. . ' _ . 'I ni l " . __ _ I _ " :' : I If _ - LI I - I I LI I — 2 . : 2; : 5 . _' : _ : . I1 ' | ' i : . - I‘ I - _' . ' I '- - . J I I I. I - I . ' _ I I I I II " : ?g IE } . I: . I : : 1 I = .l I :I I - I I - I I I I I I — 11 " 'i - I I I ‘ I ' II - I I I I I I i I E F - i ? - . {I I II I II I .- . - * - : -- . - mm Ls . , 1 . _ _ : L ' ~ ' + - . - L. - - ,5 , .. -" | ; ' r- '- " " . . ! | '. ' 55 . x " . - ”- 5 . - _J - '- 1' - ;- ' .. - : - . . = ; . '_ : j ' :_ -. .. i ' - ' - ”i n : -" -' - : . - ' ". :- ' -" " : - ' -: i " . ' i . = - - ‘ :3 5 - r i. I. . _ I I I I 'I ._ - -. I I- . _ II I I. I" : I. I - I E “ ”E ' 'I ' : ' . ' I' l - I :I ' : '- . ' 'I fI ' ' I- _ 'I 1" “ Ia r n i ' . ‘ 5" " -' .- I. : - .I -. - - __ ?r m ? g ? ? a } -- + "" - E ‘ - ‘ _ * L ' i : - Li 1 ' . - : L L ' 1 . - I - . :s L . -_ . L : ; - . v I. I ' l : .1 " — ' . I :I F - u c ' II I . . I ' r I ' I ' . - I | I _ I I I _ I . . I . I "I I I - " " 3 ? II I I 'I - I . - I I 1 - I I I I . I I | _ I I 'g . '- ' "5 - ! - IE - I L ai ? n E' I . -. F . : . ' _ - :I - I I I F I ' L T I ' m : : 1 I r ni l - I f - 5 I ' - I- I ‘- -l : "I I I: ' '- " T : - ' .' I L. . - H II “ : II ' - I‘ l l - I I r I' If - '. I- l ' :I I I P - I - I i r - .- I I .r :. - r - I. l. - .i ' -- : I . - . - ' _ - _I I I. -- - . _ I -. Ir I I I - I - I I. II I I : -I - ' I - - l - 'I I f I. I- '- Il l . :I I I‘ l l - I - l. - I I {: I I . F- ' I I_ '- ' I F ' - I - ll . _ I. I :u - I - I :r . I '- r ' I I - ' -- : - " _- . " - . -- - - _ .. ._ I- ; T I. I. II ; I I. - I - I __ . . . I '. _ :. : - . 1 - :- {L . _ _ I :l . .- . I' - I :I 1' 1 . . . I' .r . - I | . I II I. I I_ . ' I :l _I _ II I I II I ' If l _ I ' II . '- ' rI - II I I :— I. __ I -I 'I ' .- 'I I I I I I I - II . . . - II I '1 . ll - I I ' '- - 'u . I' HI ' I r. I _I I 1 ': - _. I If . I 1 10 ll 12 13 14 15 wi l l co n s i d e r in go o d fa i t h in p u t fr o m Vi s c o n s i co n c e r n i n g th e pr e c i s e lo c a t i o n of th e tw o i n te r n al ro a d co n n e c t i o n s to th e Re a l i g n m e n t ; pr o v i d e d , ho w e v e r , th a t th e Ci t y wi l l ma k e ?n a l de t e r m i n a t i o n of th e ro a d co n n e c t i o n lo c a t i o n s in th e Ci t y ’ s so l e di s c r e t i o n , ba s e d on en gi ne er in g ju d g m e n t , pu b l i c sa f e t y an d ve h i c u l a r ci r c u l a t i o n , am o n g ot h e r co n s i d e r a t i o n s . Vi s c on s i ma y re q u e s t th a t th e Ci t y in c l u d e ad d i t i o n a l cu r b cu t s in th e Re a l i g n m e n t in lo c a t i o n s th a t wi t h Vi s c o n s i ’ s Ph a s e 1 si t e pl a n , wh i c h th e Ci t y ma y in it s so l e di s c r e t i o n de t e r m i n e wh e t h e r in cl u d e or no t in c l u d e in th e Re a l i g n m e n t , pr o v i d e d th a t Vi s c o n s i sh a l l pa y al l co s t s as s o c i a t e d an y su c h ad d i t i o n a l cu r b cu t s , in c l u d i n g wi t h o u t li m i t a t i o n ad d i t i o n a l de s i g n co s t s ; in c r e a se d la b or , ma t e r i a l an d / o r co n s t r u c t i o n co s t s ; di f f e r i n g si t e co n d i t i o n s ; de l a y or sc h e d u l e ex t e n s i on co s ts ; an d / o r co n s t r u c t i o n ch a n g e or d e r . La n d s c a p i n g of th e ri g h t - o f - w a y is no t in c l u d e d in t Ha rr i s Ro a d Re a l i g n m e n t , bu t Vi s c o n s i wi l l be th e re s p o n s i b l e fo r la n d s c a p i n g on th e ea s t si d e of th e Re a l i g n m e n t ab u t t i n g Ph a s e 1, an d th e ow n e r of th e re m a i n d e r of th e Pr o p e r t y wi l l be re sp o ns ib le fo r la n d s c a p i n g on th e we s t si d e of th e Ha r r i s Ro a d Re a l i g n m e n t at th e ti m e of de v e l o pm e n t of th a t po r t i o n of th e Pr o p e r t y . b. Th e Ci t y wi l l pu b l i s h a Re q u e s t fo r Bi d s (“ R F B ” ) fo r th e Re al i g nm en t sh o w n in Ex h i b i t A; pr o v i d e d , ho w e v e r , th a t in ad d i t i o n to or in li e u of th e al i g n m e n t in Ex h i b i t A, at th e Ci t y ’ s di s c r e t i o n th e Ci t y ma y in c l u d e in th e RF B a Bi d Al t e r n a t e No . 1 sh o w n RE A L I GN M E N TAG R E E M E NT Pa g e 3 24 06 / 3 0 / 26 Page 145 of 194 ._ - ._ _ _ - . r _ .. _ 5 ' | 1 _ . - . . - : ' -. - ' r ' I ' , ' . - . . _: . . . _ : . . _ - "I ' .I I . .I '- I' l l - l " . -' -- :5 1" " 'I r ? '_ _ - 9 & 3 : EF T - u n ? — .“ g ? _- . _ _ : _ I ' -- . - . _ ' . I' . : : 1 - rl 1 : . . - . -_ . ._ ._ .. - ' . I '- . : . J - . ' : . ' _- . fi r 9- 4 . 5 : -~ " — .- - ‘ . ‘- II “' _ _ I - - - _I 1- '1 . _ I. . . 'I . - - " - ' .- : .- _I I _ II - I. .I I I. . - '? ' -. _. - - - -- - . .- - r . _ .. . ._ - ._ - '. ' I .- '_ ' ' .- . I . I . . . Ii If I I I- - - - -' _- .- -I - -. ' . - J . - I _ -. - : I. I -. .- ._ - - .- I 10 11 12 13 14 15 16 17 in Ex h i b i t B, al l o w i n g fo r a sm a l l e r se g m e n t of Ha r r i s Ro a d to be co n s t r u c t e d , so lo n g th eBi d Al t e r n a t i v e 1 ro a d w a y al i g n m e n t an d co n s t r u c t i o n is su c h th a t th e Ha r r i s Ro a d Re a l i g nm e n t ca n be ex t e n d e d an d co m p l e t e d wh e n Ph a s e 2 of th e Pr o p e r t y is de v e l o p e d . Th e Ci t y wi l l p u b li s h th e RF B af t e r it s co m p l e t i o n of 10 0 % de s i g n do c u m e n t s fo r th e Re a l i g n m e n t , bu t be f o r e 31 , 20 2 6 . c. Pr o v i d e d th a t : (i ) th e Ci t y En g i n e e r ’ s co s t es t i m a t e an d th e bi ds fo rth e Ha r r i s Ro a d Re a l i g n m e n t ar e ac c e p t a b l e to th e Pa s c o Ci t y Co u n c i l in it s so l e di s c r et i o n ; (i i ) Vi s c o n s i ha s cl o s e d an d re c o r d e d it s pu r c h a s e fr o m BP of th e Ph a s e 1 Pr o p e r t y ; (i i i ) th e re s p o n s i b l e an d re s p o n s i v e bi d is wi t h i n 30 % of th e Ci t y ’ s En g i n e e r ’ s Es t i m a t e of Pr o j ec t co s t s; (i v ) a co n t r a c t fo r co n s t r u c t i o n is aw a r d e d by th e Pa s c o Ci t y Co u n c i l an d ex e c u t e d be tw ee n th e Ci t y an d th e re s p o n s i b l e , re s p o n s i v e bi d d e r , an d (v ) th e ri g h t of wa y de d i c a t i o n de s cr i be d in Se c t i o n 2 (D e d i c a t i o n of La n d ) be l o w is co m p l e t e d an d ac c e p t e d by th e Pa s c o Ci t y Co u nc i l init s so l e di s c r e t i o n ; th e Ci t y wi l l in i t i a t e co n s t r u c t i o n of th e Ha r r i s Ro a d Re a l i g n m e n t , wi l l c o o r d i n a t e Ci t y co n s t r u c t i o n ac t i v i t i e s wi t h Vi s c o n s i re g a r d i n g th e De v e l o p m e n t an d ac h i e v e a s u b s t a n ti a l co m p l e t i o n da t e wi t h i n 28 mo n t h s of th e da t e of aw a r d of th e co n s t r u c t i o n co n t r a c t . Fo r of th i s su b s e c t i o n , “s u b s t a n t i a l co m p l e t i o n da t e ” sh a l l ha v e th e me a n i n g pr o v i d e d in th e of th e Wa s h i n g t o n St a t e De p a r t m e n t of Tr a n s p o r t a t i o n (W S D O T ) St a n d a r d Sp e c i ? c a t i o n s Ro ad , RE A L I GN M E N TAG R E E M E NT Pa g e 4 24 06 / 3 0 / 26 F G : 11 04 77 72 2.1 Page 146 of 194 . '_ .- . . ' - . :. I ;‘ 1 ; . - . ' : ' - . - . I ' - ' 3 5 ' - I - I :: I . . : l . - = . : ' - : - .' _ ' . . - .. _ - -: . - . -. _ ., ' . - ' . . 1 " .- . - _ . " . ' : ' " ' £ I ' : | ' 2 1 : - ' 1 : : ' . ‘ : . = 2 5 ' : .: '. ' I L I ' : - ' : - ' _ - 3: 5 1 ? - rl ' : ' . ' : i - r I I : I ' I ' I. - ' . _ .- ' 'l r i — l -' '. _ = . . - -. ak a : -I-I. I. .-.--. .. l. . _ .-I -. ' - I . -. '- l '. ' . I- . - I I--.-I ' '- . I ' 'I ' :_ '- . '. J a HI - " I - I . _ :' I I .' = -1 _ - I : - I. - - .- - 'I . '- L " " _. I ' '. ' . - .l _ :I .. .- ‘I I - ? l f - 1 " _ .. : I I .3 1 . “ . ' -' - 'I ' :_ _a - _ . 'I - _ T I I .I . r 'I - .' - . - ._ . ' . . -. - -. . - ' - 1 - ' '- r _- ‘ - _ - II - r- . .- I . - . .- I - .j - . . -. - .. '- . ' : - " " ' l" - -. I . - - - .J . . _- | - . - .' I . r . aw , - _ '_ _ ' - . I . . 10 11 12 13 14 15 Br i d g e an d Mu n i c i p a l Co n s t r u c t i o n , as mo d i ? e d by an y Ci t y lo c a l ag e n c y am e n d m e n t s , to th e Ha r r i s Ro a d Re a l i g n m e n t co n s t r u c t i o n co n t r a c t . In th e ev e n t th a t on e or mo re of th e fo r e g o i n g re q u i r e m e n t s ar e no t me t , th e Ci t y ma y te r m i n a t e th i s Ag r e e m e n t as pr o v i d e d S e ct io n 3 be l o w . (1 . In th e ev e n t th a t th e co s t of a co n t r a c t aw a r d e d fo r co n s t r u c t i o n of t Ha rr i s Ro a d Re a l i g n m e n t ex c e e d s th e am o u n t of th e Ci t y En g i n e e r ’ s Es t i m a t e , th e Pa r t i e s to al l o c a t e th e ex c e s s co s t s as fo l l o w s : (1 ) if th e am o u n t of th e aw a r d e d co n t r a c t is le s s th a n 1 0 %of th e En g i n e e r ’ s Es t i m a t e , th e Ci t y wi l l be a r th e ad d i t i o n a l am o u n t ; (2 ) if th e am o u n t of th e co n t r a c t is 10 % to 20 % ov e r th e En g i n e e r ’ s Es t i m a t e , th e Ci t y an d Vi s c o n s i wi l l ea c h pa y 5 0 %of th e am o u n t fr o m 10 % - 20 % ; an d (3 ) if th e am o u n t of th e aw a r d e d co n t r a c t is mo r e th a n an d up to 30 % ov e r th e En g i n e e r ’ s Es t i m a t e , Vi s c o n s i is re s p o n s i b l e fo r th e am o u n t of th e co n t r a c t co s t ex c e e d i n g 20 % an d up to 30 % ov e r th e Es t i m a t e . If bi d s ex c e e d 30 % of th e th e Ci t y ma y re j e c t al l bi d s an d te r m i n a t e th i s Ag r e e m e n t as pr o v i d e d in Se c t i o n 3 be l o w. To il l u s t r a t e , a $4 mi l l i o n En g i n e e r ’ s Es t i m a t e wo u l d re s u l t in th e fo l l o w i n g co s t a l l o c a t i o n : (1 ) Ci t y is re s p o n s i b l e fo r up to $4 , 4 0 0 , 0 0 0 if th e am o u n t of th e aw a r d e d co n t r a c t is u p to10 % ov e r th e Es t i m a t e ; (2 ) th e Ci t y is re s p o n s i b l e fo r $4 , 6 0 0 , 0 0 0 an d Vi s c o n s i is re s p o ns i b l e fo r $2 0 0 , 0 0 0 if th e am o u n t of th e aw a r d e d co n t r a c t is 20 % ov e r th e En g i n e e r ’ s Es t i m a t e ; a n d (3 )th e RE A L I GN M E N TAG R E E M E NT Pa g e 5 24 06 / 3 0 / 26 Page 147 of 194 ... . . . .I . r. .— . .. . . I. . . . . . . ... . . . .. T" . -. . . I I - . .. I - I I . I . . I . - . . .. l . . .. .. . — qu . l . .I . - " H 1 u. - .. ” . . .. I . . . .. .. . . I 1 . I. . . . .1 . . . .. I . _ . _ I .. . . .. . . . . .. . . . . . . 1 .. 1. . Fa d - “ . J e ? r s ? . .u. . . . . . IF I II I II II I I I II I II I u I "I I I I I .. . .. . . .I . .. .r . . .. . . _. _ . . . . . . . . . . . . . . -. - .. . . . . .. . . . . . : .. .. .. . . . . I. . - - . . . . . . .. .. . . . .. . . . . . .. .I . . . . " I . . . I. . . In n w .I . I . .. n . I . . . .I .. I In . . .I . . - . . I . .. .I . . - .. . u . I wI I - I I1 I- -I 1- '- I. . . I 1 . . . . .E .. . . .u .. . . r . . . . . . vb . . . ” .. . I I . . .. .. . .. . . . . r — I . I . ...... .. . d1 . .. I. . .. .. . . . . J w - .. . $1 . - . . . . . . - ._ . .. . - . . . . lu l l . L .... . . . L u ... I . . .. I . Hm . .. . . I - I . I1 .I ?_ . . . . . I . _ . "u m . I .m — u. .. . . .. . I ... .. . .. . . . . . . i. . . . 1. . . . . . ” 10 ll 12 13 14 Ci t y is re s p o n s i b l e fo r $4 , 6 0 0 , 0 0 0 an d Vi s c o n s i is re s p o n s i b l e fo r $6 0 0 , 0 0 0 if th e am o u nt of th e aw a r d e d co n t r a c t is 30 % ov e r th e En g i n e e r ’ s Es t i m a t e . Vi s c o n s i wi l l re i m b u r s e th e Ci t y an y am o u n t s du e un d e r th i s su b s e c t i o n wi t h i n t (3 0 ) da y s of th e da t e of th e Ci t y ’ s an d re s p o n s i b l e bi d d e r ’ s ex e c u t i o n of th e co n s t r u c t i o n co nt r ac t fo r th e Ha r r i s Ro a d Re a l i g n m e n t . Th e Pa r t i e s ag r e e th a t pa y m e n t of an y co s t s by Vi s c o n s i th i s su b s e c t i o n sh a l l no t en t i t l e Vi s c o n s i to a cr e d i t ag a i n s t tr a n s p o r t a t i o n im p a c t fe e s pa i d fo rth e De v e l o p m e n t un d e r PM C 3. 4 0 . 0 8 0 . If th e Ci t y ha s no t ex p e n d e d an y am o u n t s re i m b ur se d he r e u n d e r on co n s t r u c t i o n of th e Ha r r i s Ro a d Re a l i g n m e n t wi t h i n ?v e (5 ) ye a r s of co l l e ct i o n , th e Ci t y sh a l l re f u n d su c h am o u n t s wi t h i n th i r t y (6 0 ) da y s of th e da t e of Vi s c o n s i ’ s wr i t t e n th e r e f o r . e. Co n d i t i o n s of Ci t y la n d us e or ot h e r pe r m i t ap p r o v a l s fo r th e De v e l o p me n t ma y re q u i r e co n s t r u c t i o n of or pa y m e n t of pr o ra t a co n t r i b u t i o n s to w a r d s ot h e r st r e e t , ro a d , or ot h e r im p r o v e m e n t s ne e d e d to se r v e an d / o r mi t i g a t e im p a c t s fr o m th e De v e l o p m e n t . T h e Ci ty ’ s co n s t r u c t i o n of th e Ha r r i s Ro a d Re a l i g n m e n t sh a l l no t be co n s t r u e d as li m i t i n g th e im p os i t i on of ot h e r w i s e — a p p l i c a b l e st a t e or ci t y la w s , or d i n a n c e s , or re g u l a t i o n s au t h o r i z i n g or re q u i ri n g su c h ot h e r im p r o v e m e n t s , mi t i g a t i o n me a s u r e s or pa y m e n t of fe e s as a co n d i t i o n of Ci t y us e ap p r o v a l s or pe r m i t s ne e d e d fo r th e De v e l o p m e n t . RE A L I GN M E NT AG R E E M E NT Pa g e 6 24 06 / 3 0 / 26 Page 148 of 194 -w z g a r - I. II I. '- :- —' : : | _ - l l l . - I r - I _ _ I ! _ ! I .. .l _ -. _ . - _- . 10 11 12 13 14 15 16 2. De d i c a t i o n of La n d . On or be f o r e th e da t e of cl o s i n g of Vi s c o n s i ’ s ac q u i s i t i o n of th e Pr o p e r t y, an dno la t e r th a n Fe b r u a r y 15 , 20 2 7 , Vi s c o n s i wi l l de d i c a t e or ca u s e to be de d i c a t e d to th e Ci t y , no co s t to th e Ci t y su f ? c i e n t ri g h t - o f — w a y fo r th e Ha r r i s Ro a d Re a l i g n m e n t as de s c r i b e d in S ec ti o n 1. a . ab o v e an d Ex h i b i t s A an d B. De d i c a t i o n sh a l l be ac c o m p l i s h e d by a Ba r g a i n an d Sa l e D e e d inth e fo r m at t a c h e d he r e t o as Ex h i b i t C an d su b j e c t on l y to an y ex i s t i n g ex c e p t i o n s an d th e s t pr i n t e d ex c e p t i o n s ti t l e id e n t i ? e d in th e pr e l i m i n a r y co m m i t m e n t fo r ti t l e in s u r a n c e d at e d [da t e he r e ] . At co n v e y a n c e , Vi s c o n s i wi l l pr o v i d e Ci t y wi t h $6 5 0 , 0 0 0 AL T A st a n d a r d ti t l e in s u r i n g Ci t y ag a i n s t lo s s or da m a g e ar i s i n g fr o m an y de f e c t s in ti t l e su b j e c t to an y e x i s ti n g ex c e p t i o n s an d th e st a n d a r d pr i n t e d ex c e p t i o n s id e n t i ? e d in th e pr e l i m i n a r y co m m i t m e nt f o rti t l e in s u r a n c e da t e d [d a t e he r e ] . At th e Ci t y ’ s re q u e s t , th e ti t l e po l i c y ma y in c l u d e ex t e n d e d or en d o r s e m e n t s (s u b j e c t to th e ti t l e co m p a n y ’ s ap p r o v a l of ex t e n d e d co v e r a g e or en d o rs e m en t ) , bu t th e Ci t y wi l l be a r th e ex p e n s e fo r an y ex t e n d e d co v e r a g e or en d o r s e m e n t s . D e m ol i ti o n, re m o v a l or ab a n d o n m e n t of an y ex i s t i n g pa v e m e n t or ut i l i t i e s re m a i n i n g wi t h i n th e cu r r e nt Ha rr i s Ro a d al i g n m e n t as of th e da t e of an y or d i n a n c e va c a t i n g Ha r r i s Ro a d sh a l l be re s p o n s i b i l i t y . 3. Co n t i n g e n c y Pl a n n i n g an d Te r m i n a t i o n . RE A L I GN M E NT AG R E E M E NT Pa g e 7 24 06 / 3 0 / 26 F G : 11 04 77 72 2.1 Page 149 of 194 10 11 12 13 14 15 16 a. If th e Ci t y ha s no t re c e i v e d a de d i c a t i o n of a Re a l i g n m e n t ri g h t - of — wa y by Fe b r u a r y 15 , 20 2 7 , th e Ci t y ma y up d a t e it s Ci t y En g i n e e r ’ s co s t es t i m a t e an d th e bi d s fo r Ha rr i s Ro a d Re a l i g n m e n t an d re c o m p l e t e th e pr o c e s s ou t l i n e d in Se c t i o n 2. b — 2. d du r i n g th e s u b s e q u e n t bi d cy c l e . b. In th e ev e n t th a t : (a ) Vi s c o n s i fa i l s to ta k e al l of th e ac t i o n s de sc r ib ed in Se c t i o n 1( b ) by Fe b r u a r y 15 , 20 2 7 ; (b ) on e or mo r e of th e re q u i r e m e n t s in Se c t i o n 1( c ) a r e n otme t or (0 ) bi d s fo r co n s t r u c t i o n of th e Ha r r i s Ro a d Re a l i g n m e n t ex c e e d 30 % of th e En g i n e e r ’ s an d th e Ci t y re j e c t s al l bi d s ; th e Ci t y ma y un i l a t e r a l l y te r m i n a t e th i s Ag r e e m e n t . Te r m i n a ti o n sh a l l be ef f e c t i v e up o n el e c t r o n i c , ma i l or in - p e r s o n de l i v e r y of wr i t t e n no t i c e of sa m e to Vi s c on s i . c. If th e Ci t y ha s re c e i v e d a de d i c a t i o n of a Re a l i g n m e n t ri g h t - o f —w a y an d su b s e q u e n t l y ca n c e l s th e Re a l i g n m e n t pr o j e c t an d te r m i n a t e s th i s Ag r e e m e n t , Vi s c on s i ma y co n s t r u c t at Vi s c o n s i ’ s co s t th e Ha r r i s Ro a d Re a l i g n m e n t wi t h i n th e de d i c a t e d Re a l i g n m en t ri g ht - of - w a y , an d re c e i v e a cr e d i t fo r th e co n s t r u c t i o n co s t s ag a i n s t tr a n s p o r t a t i o n im p a c t fe e s p a i dby Vi s c o n s i fo r it s Ph a s e 1 pr o j e c t . Vi s c o n s i ma y al s o se e k ap p r o v a l fo r a de v e l o p e r re i m b ur s e me n t ag r e e m e n t pu r s u a n t to Ch . 14 . 2 5 of th e Pa s c o Mu n i c i p a l Co d e , up to th e am o u n t of Re al i gn me nt co n s t r u c t i o n pa i d by Vi s c o n s i in ex c e s s of th e am o u n t of an y cr e d i t ag a i n s t Ph a s e 1 tr a n sp o r ta t i o n im p a c t fe e s . RE A L I GN M E NT AG R E E M E NT Pa g e 8 24 06 / 3 0 / 26 F G : 11 04 77 72 21 Page 150 of 194 10 11 12 13 14 15 16 4. De ? n i t i o n s . Wo r d s an d ph r a s e s hi g h l i g h t e d in bo l d he r e i n sh a l l ha ve th eme a n i ng as c r i b e d to th e m by th i s Ag r e e m e n t . Al l ot h e r wo r d s an d ph r a s e s sh a l l be in t e r p re t e d us i n g th e or d i n a r y me a n i n g de r i v e d fr o m di c t i o n a r i e s in co m m o n us a g e su c h as Ox f or d ' s Am e ri c a n Di c t i o n a r y , Me r r i a m - W e b s t e r ' s Di c t i o n a r y , or th e Am e r i c a n He r i t a g e Co l l e g i a t e 5. Re c i t a l s an d Ex h i b i t s In c o r p o r a t e d by Re f e r e n c e . Al l Re c i t a l s a n dEx h i b i ts re f e r e n c e d in th i s Ag r e e m e n t ar e he r e b y in c o r p o r a t e d by th i s re f e r e n c e an d sh a l l b e c o n s i d e r e das ma t e r i a l te r m s of th i s Ag r e e m e n t . 6. In t e g r a t i o n . Th i s Ag r e e m e n t an d it s co m p o n e n t el e m e n t s co n s t it u t e th e en t i r e un d e r s t a n d i n g be t w e e n th e Pa r t i e s re g a r d i n g th e su b j e c t ma t t e r he r e o f , an d no pr i o r orwr i t t e n ag r e e m e n t sh a l l be va l i d . 7. He a d i n g s . Th e he a d i n g s us e d in th i s Ag r e e m e n t ar e fo r co n v e n i e n c e an d sh a l l no t be us e d to in t e r p r e t th e te r m s of th i s Ag r e e m e n t . 8. Ob l i g a t i o n to Ab i d e by La w . Th e Pa r t i e s ac k n o w l e d g e th e i r re s p e c ti v e ob l i ga t i on s to ab i d e by ci t y , st a t e , an d fe d e r a l la w s an d re g u l a t i o n s ap p l i c a b l e to th i s Ag r ee m en t an d th e De v e l o p m e n t . No t h i n g he r e i n sh a l l pr e v e n t th e Ci t y fr o m en f o r c i n g su c h la w s w he re ap p li c a bl e , in c l u d i n g wi t h o u t li m i t a t i o n su c h la w s , or d i n a n c e s or re g u l a t i o n s ap p l i c a b l e to th e RE A L I GN M E NT AG R E E M E NT Pa g e 9 24 06 / 3 0 / 26 Page 151 of 194 -; - ' . n ~ . ; . - W" "_ : - . . ' . - '1 4 : ? 1: : 53 ¢ “ . .; -- I- I - ._ .u .- - - 35 ' ! .a . - . _ . - 1 . ' { ' ? - L - ' : " " ' - " ' - " ' l . : . - u- ' : F = " ' 1 . _ _ . " ' i ' - H 1 - - .- : - : _ ' - .- _ - ' . - . “f I.G‘ s - H E W ” ; we : 1: : .' f + c * 1 _ - ' ~ . . ' . - - - : 14 . : . ”p a w . $9 ¢ 1 E H :- 3 3- 5 ; } . 32 1 : ; lu m p ; ' .- . - - . - ' _ ii i - H y “- I H W I I I E P I - I F I é I h I - I - I I : .I ‘ - l . . . - '_ : '- _ . - . .J .I ' 14 ' ] I' I .J .- - _- ' - . -i _' - . ' - ' : _ . ' - . ' _ : u ' "i n E-. " ' - _ r .' - ' _- ' '- —l - ' 'I - '1 . _r I. ' _ ' - _ - I ' - . =- .- . ' - : ' - I I . - - .' :' I ._ '. . - . r .. '_ . ' . _ - . _ : . ' . -' . - _ " - -- " .- -_ _ 'I ' I ' -- - _ - _ __ : I II . - -I - '. - . ' .‘ I I. - .- "" . - __ _' I .I ' P- I " _ ., - ' ._ '- - '. 2 - l I" ' '. — ' . ' - ' 1 ' - ' - " - . : - : l l ' _ : | ' - e . - -- - - 10 11 12 13 14 15 16 17 in c l u d i n g an y re l a t e d to st r e e t , ro a d , ut i l i t y or ot h e r in f r a s t r u c t u r e re q u i r e d to th e De v e l o p m e n t or mi t i g a t e it s im p a c t s , an d / o r re l a t e d to Ci t y ?J n d i n g re q u i r e m e n t s . 9. In t e r p r e t a t i o n . Th i s Ag r e e m e n t ha s be e n re v i e w e d an d re v i s e d by le g al c o u n s el fo r al l Pa r t i e s , an d no pr e s u m p t i o n or ru l e co n s t r u i n g am b i g u i t y ag a i n s t th e dr a f t e r of th e sh a l l ap p l y to th e in t e r p r e t a t i o n or en f o r c e m e n t of th i s Ag r e e m e n t . No t h i n g he r e i n s h a l lbe co n s t r u e d as a wa i v e r of th e Ci t y ' s co n s t i t u t i o n a l an d st a t u t o r y po w e r s . No t h i n g he r e i n s h a llbe co n s t r u e d or im p l i e d th a t th e Ci t y ha s by th i s Ag r e e m e n t co n t r a c t e d aw a y it s co n s t i t u t io n a l an d st a t u t o r y po w e r s , ex c e p t as ot h e r w i s e au t h o r i z e d by la w , no r th a t th e Ag r e e m e n t in wa y re q u i r e s th e Ci t y to ac t co n t r a r y to or ot h e r th a n in co m p l i a n c e wi t h al l ap p l i c a b l e fe d er a l st a t e , co u n t y an d Ci t y of Pa s c o st a t u t e s , la w s , ru l e s , re g u l a t i o n s an d or d i n a n c e s . 10 . Au t h o r i ? . Ea c h si g n a t o r y to th i s Ag r e e m e n t re p r e s e n t s an d wa r r a n t s th a t or sh e ha s fu l l po w e r an d au t h o r i t y to ex e c u t e an d de l i v e r th i s Ag r e e m e n t on be h a l f of th e Pa r t y wh ic h he or sh e is si g n i n g , an d th a t he or sh e wi l l de f e n d an d ho l d ha r m l e s s th e ot h e r P ar ti es an d si g n a t o r i e s fr o m an y cl a i m th a t he or sh e wa s no t fu l l y au t h o r i z e d to ex e c u t e th i s Ag r e em e nt on be h a l f of th e pe r s o n or en t i t y fo r wh o m he or sh e si g n e d . Up o n pr o p e r ex e c u t i o n an d de l i ve r y, th i s Ag r e e m e n t wi l l ha v e be e n du l y en t e r e d in t o by th e Pa r t i e s , an d wi l l be en f o r c e a b l e ag ai n st ea c h Pa r t y in ac c o r d a n c e wi t h th e te r m s he r e i n . RE A L I GN M E NT AG R E E M E NT Pa g e 1 0 o f24 06 / 3 0 / 26 Page 152 of 194 ." Ir d r u w g - ‘ n ' f ’ r ' a : __ . _ - | . . - - I ' - I: ' - __ : ' - . ' : - " " ' I ' I " - " - - : " :I ’ ? ' “H ’ 1r " J? i ‘ ? FE E - H } . I? i E - n ' f ?' i i H? ? ’ ? - '- ‘ | : I | ' - ' - | - " ' . . 1' J L . . - _ ' _ _ 1 ' ; _ _ ? . “ 7 : . ; ‘ _ . ' . - : ?i ? $4 5 . 1 3 ; ? ! nF I E ' J H h - "‘ _ - .- . -_ - : . _ " " : ' : . ! ' . j ' - ' " - ' - ' _ - . . "5 - 3 ; " - '. ' . ' . - . ‘ - .' I : _ I- i ' - ‘ I 1 - _ - ' - . . : ' - , ' : ; . _ - ' : I. I I II I - : " I . " ' + ' : a I .. ?r ? -I _ - . - . - _ _ _ ._ . I _1 - '. . '- . . I - In n - 5 . 1 . . -- . - -. . ' . - - .- -. ' - . 11 . M. If an y Pa r t y is d e l a y e d inth e pe r f o r m a n c e of it s ob l i g a t i o n s inth i s Ag r e e m e n t du e to Fo r c e Ma j e u r e , th e n p er fo r m a n ce of su c h ob l i g a t i o n sh a l l be ex c u s e d fo r th e pe r i o d of de l a y . Fo r c e Ma j cu r e me a n s ex t r ao r di n a ry na t u r a l ev e n t s orco n d i t i o n s su c h aswa r , ri o t , la b o r di s p u t e s , or ot h e r ca u s e s be y o n d th e co n t r o l of th e ob l i g a t e d pa r t y . 12 . No t i c e s . Al l no t i c e s , re q u e st s , de ma nd s ,an d ot h e r co m m u n i c a t i o n s ca l l e d fo r or co n t e m p l a t e d by th i s Ag r e e m e n t sh a l l be i an d sh a l l bedu l y gi v e n byma i l i n g th e sa m e by ce r t i ? e d ma i l , re t u r n re c e i p t re q u e s t e d , o rbyde l i v e r i ng th e sa m e byha n d , toth e fo l l o w i n g ad d r e s s e s , or to su c h ot h e r ad d r e s s e s as th e ma y de s i g n a t e bywr i t t e n no t i c e inth e ma n n e r af o r e s a i d . V u co , WA tt o r n e y : Fo s t e r Ga r v e y PC 11 1 1 3r d Av e n u e , Su i t e 30 0 0 Se a t t l e , WA 98 1 0 1 c/ o : Bo b St e r b a n k Vi s c o n s i Co m p a n i e s , Lt d . RE A L I GN M E NT AG R E E M E NT Pa g e 1 1 o f24 06 / 3 0 / 26 Ci t y of Pa s c o Ci t y Ma n a g e r Ci t y Ha l l 52 5 N 3r d A An d to it s A Page 153 of 194 OO \ ] O \ ' J I \O 10 11 12 13 14 15 16 17 18 19 30 0 5 0 Ch a g r i n Bl v d . Pe p p e r Pi k e , OH 44 1 2 4 c/ o : Br a d Go l d b e r g An d to it s At t o r n e y : Th a r s i s La w PS 32 3 26 t h Av e . Se a t t l e , WA 98 1 2 c/ o : Je r e m y Ec k e r t 13 . Di s p u t e Re s o l u t i o n . It is th e Pa r t i e s ' in t e n t to wo r k co o p e r a t i v e l y an d to di s p u t e s in an ef ? c i e n t an d co s t - e f f e c t i v e ma n n e r . a. Se t t l e m e n t Me e t i n g . If an y di s p u t e ar i s e s be t w e e n th e Pa r t i e s re l a t i n g th i s Ag r e e m e n t , th e n th e Pa r t i e s sh a l l me e t an d se e k to re s o l v e th e di s p u t e in go o d fa i t h , wi t hi n te n (1 0 ) da y s af t e r a Pa r t y ' s re q u e s t fo r su c h a me e t i n g . b. Un r e s o l v e d Di s p u t e s . In th e ev e n t th a t th e Pa r t i e s ar e un a b l e to re s o l ve th ei r di s p u t e at th e Se t t l e m e n t Me e t i n g , ei t h e r Pa r t y ma y bu t is no t re q u i r e d to pr o v i d e th e ot h er P ar ty wi t h a No t i c e of De f a u l t , se t t i n g ou t th e na t u r e of th e di s p u t e an d pr o p o s e d re s o l u t i o n . Th e P a rt y is s u i n g th e No t i c e of De f a u l t is re f e r r e d to he r e i n as th e “N o n — D e f a u l t i n g Pa r t y ” an d th e P a rt y re c e i v i n g th e No t i c e of De f a u l t is re f e r r e d to as th e “D e f a u l t i n g Pa r t y ” . Th e De f a u l t i n g Pa r ty sh al l ha v e te n (1 0 ) bu s i n e s s da y s to re s p o n d to No t i c e of De f a u l t . If th e De f a u l t i n g Pa r t y fa i l s to r RE A L I GN EN T AG R E E M E NT Pa g e 1 2 o f24 06 / 3 0 / 26 F G : 110 4 77 7 22 1 Page 154 of 194 .. . .. L l . . .. . . I . ._ . _ . . . . .. -. .. . ... u. . . I- .. . . u . . I .. . I . . . .. I .n I I .. . . -1 3 . . . I . i . u . .. . . .. . .. . . I . . .. F . . .. r .. h . I .— . . .. . . .. u . . _ . .. . I w . . . I. .. . . . I. . . . .. . 1 .. .. .u m I . . .. I .u . _. .. . . II .. . . .. .. .. . . . .. . . . . I h ? . . I .. I .I .. . . L. I. _I .. . I 1 .. I. . . L I I. - . . - I .. _ . .. u ... . - . I .. . .— .. . . .. . I. . I . .. .. . I . .. L . .. . .m . . ” . . . I .I . . . .I . u . .. . . . J. . I. .. . .. . . . .. I . .. . . . I. . _ . . .I . .1 ” 1 '- - . = '1 : :: ' - -- - | I- .- I q I .. . . " I I' .- 1 II - I l ?L . I - . ' . ' - '- FH - . I-. .' I 'l I. ' I I— I ' ' __ . - -. | . I. _ - _ : . . a _. _ . . .- 15 5 $ - EH " - I .. . : 1 r " JL l . - .I - . _ _ . _ . : II ' .I . - L. - '. I : I : . I . - . . I : u - _: I ' 3-.I ' .I . I' - I. .I ' . " 1 I 1 15 16 or th e di s p u t e re m a i n s un r e s o l v e d at th e en d of th e te n (1 0 ) da y pe r i o d , th e No n - De f a u l t in g Pa r t y ma y co m m e n c e an ac t i o n in Su p e r i o r Co u r t to en f o r c e th i s Ag r e e m e n t . Th e Pa r t i e s inth e i r jo i n t di s c r e t i o n mu t u a l l y ag r e e to ex t e n d th e te n (1 0 ) da y pe r i o d fo r cu r e . If an ex t e n s io n ag r ee me nt is re a c h e d , th e No n - De f a u l t i n g Pa r t y sh a l l no t ex e r c i s e an y le g a l re m e d i e s un t i l un l es s th e ap p l i c a b l e cu r e pe r i o d ha s ex p i r e d an d th e de f a u l t re m a i n s ma t e r i a l l y un c u r e d at su ch ti m e. c. Go v e r n i n g La w an d Ve n u e . Th i s Ag r e e m e n t sh a l l be go v e r n e d by co n st r u ed in ac c o r d a n c e wi t h th e la w s of th e St a t e of Wa s h i n g t o n . Ve n u e fo r an y ju d i c i a l ac t io n ar i si n gou t of or re l a t i n g to th i s Ag r e e m e n t sh a l l li e in Fr a n k l i n Co u n t y Su p e r i o r Co u r t . d. Sp e c i ? c Pe r f o r m a n c e . Th e Pa r t i e s sp e c i f i c a l l y ag r e e th a t da m a ge s ar e no t an ad e q u a t e re m e d y fo r br e a c h of th i s Ag r e e m e n t an d th a t th e Pa r t i e s ar e en t i t l e d to c o sp e c i ? c pe r f o r m a n c e of al l ma t e r i a l te r m s of th i s Ag r e e m e n t by an y Pa r t y in de f a u l t he r e o f . te r m san d pr o v i s i o n s of th i s Ag r e e m e n t ar e ma t e r i a l . 6. At t o r n e y s ' Fe e s . In an y ad m i n i s t r a t i v e or ju d i c i a l ac t i o n to en f o r c e o rde t er m in e a pa r t y ' s ri g h t s un d e r th i s Ag r e e m e n t , th e pr e v a i l i n g pa r t y (o r th e su b s t a n t i a l l y pr e v ai l i n g pa r t y , if no on e pa r t y pr e v a i l s en t i r e l y ) sh a l l be en t i t l e d to re a s o n a b l e at t o r n e y s ' fe e s , ex p e r t fe e s , an d co s t s , in c l u d i n g fe e s an d co s t s in c u r r e d in th e ap p e a l of an y ru l i n g of a lo w e r c o ur t. RE A L I GN M E NT AG R E E M E NT Pa g e 1 3 o f24 06 / 3 0 / 26 P 110 4 7 77 2 2 . ] Page 155 of 194 Ig - II . I 'I - " .. ' I '1 ': .I . - l -: | I . :- . '. I ' 1 '- '_ . " . :- . . - _- . ~ ' ; . . : 1 - . - . 1 1 1 = . 1 1 . 1 : f . a 1 1 1 _ 1 1 . : a . 1 - 1 :1 1 : 1 1 ; 1. 1 1 : . Em m i : ' ._ _ . ' 1 I . 1 1 I _d ? ? c a . . j q = 1 = 1 o s : 1 1 ? ? a. L I I f . 1 - t ‘ 1 1 1 1 -. _-, _ . I 1; . . . 11 - 1 1 - - «? r - “ 1 . . - 14 : 1 5 15 1 5 1 : . - . . ‘1 " . 2 : _ . . - . . {g m - 1 J " E " : : 1 _ 1 " - 1 "1 _ . i . + _ 3 : . 51 1 1 ' . Ri f t - 1 % . = ‘I I I I I I I I I . {? v ? ' i f h ? ? f ? ' g II I I ’ E I - z .: I . - ' _ . Il l - T H E : :- __ .- 1" - I' FI I ' F J - 1 ' T ' f 5 - I ' 1 - r l ' i E - i "_ ' | _ l : ' __ ' L - I I I j g ' Z - II H I - -I = 1 - ' | . ' F I I .- ' . ' -' - - ." Ju l i - 1 ' 3 ” I' 1 I _ ' - -I . ". ' . :- I. - - . . .. - I I_ _I - . _I II . - _I T I I . . . . ._ - '. Ii . I I J _- : ; - : ¢ : . I I .' I I I] . . . I I _ - r - '- J" : - _E - I :- I' _ . I _ . .- 'I ' .- . - . . - - _ - -' I _. _ _ - a . -- T- ‘ I I - u l ' aw n - q r : : _ I _ -. .. fl ' . -. ' '- .- l' -. . ” I : . ' : I ' . I ' I. - - l - ' I. -. - .' “ I E I . .- .I I I . _. I I .- . 'E ' J - I ' : .' . ' : - I I -_ . ' __ . _ . - . a. _- a . _ _' _ . - - I. - -. _ _ _ _ I _1 - - - - 'r 1. . 1. . - _ - __ - I - .' I . .: . -I I _- .I I . - - __ . I_ __ . _. . _ I. II . . I _ F“ '2 ; — '- _. 1 I .J . .I . I . _. _ " - I' I ' '3 ' " . .' . _J . '. . .. I r - .- -I .I _ r I . - - - .. - II .I -- . 1 :I ' : I I - .1 I- . - . . I E - I. . _. ‘ - I -- . I. - I I -g . I II . -I - .| _ - II _ I. I_ __ . I- . I _ : ' .. I _ r_ _ . I . ._ _ .I . _. r . . '- . - . ' :I _ . | ' -. - I | - . gu n - L E I ; .l 33 ' II I I . . . I - . -: . I . . -I ‘ f l ' . . -' I - _ . - _ r. I . - - 1 - -- . - 1 . . .- - : - . 1. .- I' '- . . .- _ . __ _ I. . ,, I. -. J. . I I I ._ . 4' . 1 . 1I | '. ' -. | 12 13 14 15 16 17 14 . N0 Th i r d - P a r t y Be n e f i c i a r y . Th i s Ag r e e m e n t is ma d e an d en t e r e d in t o fo r so l e pr o t e c t i o n an d be n e ? t of th e Pa r t i e s he r e t o an d th e i r su c c e s s o r s an d as s i g n s . No ot h e r pe r s on sh a ll ha v e an y ri g h t of ac t i o n ba s e d up o n an y pr o v i s i o n of th i s Ag r e e m e n t . 15 . Se v e r a b i l i g . Th i s Ag r e e m e n t do e s no t vi o l a t e an y fe d e r a l or st a t e st a t u te , ru l e, re g u l a t i o n or co m m o n la w kn o w n ; bu t an y pr o v i s i o n wh i c h is fo u n d to be in v a l i d or in of an y st a t u t e , ru l e , re g u l a t i o n or co m m o n la w sh a l l be co n s i d e r e d nu l l an d vo i d , th e re m a i n i n g pr o v i s i o n s re m a i n i n g Vi a b l e an d in ef f e c t . 16 . Co o p e r a t i o n in Ex e c u t i o n of Do c u m e n t s . Th e Pa r t i e s ag r e e to pr o p er l y an d pr o m p t l y ex e c u t e an d de l i v e r an y an d al l ad d i t i o n a l do c u m e n t s th a t ma y be ne c e s s a r y t o r e n d e r th i s Ag r e e m e n t pr a c t i c a l l y ef f e c t i v e . Th i s Pa r a g r a p h sh a l l no t re q u i r e th e ex e c u t i o n an y do c u m e n t th a t ex p a n d s , al t e r s or in an y wa y ch a n g e s th e te r m s of th i s Ag r e e m e n t . 17 . Ex h i b i t s . Th i s Ag r e e m e n t in c l u d e s th e fo l l o w i n g ex h i b i t s wh i c h ar e in c o rp o r at e d by re f e r e n c e he r e i n : 1. Ex h i b i t A: Lo t 10 Ph a s e 1 Si t e Pl a n & Ha r r i s Ro a d Re a l i g n m e nt 2. Ex h i b i t B: Ha r r i s Ro a d Re a l i g n m e n t Bi d Al t e r n a t e No . 1 18 . Su c c e s s o r s an d As s i g n s . Th i s Ag r e e m e n t sh a l l be bi n d i n g up o n an d in u re toth e be n e ? t of th e he i r s , ad m i n i s t r a t o r s , ex e c u t o r s , su c c e s s o r s in in t e r e s t an d as s i g n s of ea c h o fth e RE A L I GN M E NT AG R E E M E NT Pa g e 1 4 24 06 / 3 0 / 26 F G : 11 04 77 72 2.1 Page 156 of 194 _ - :. . - .. . - I | - : I ' : Il . - . . .. - _ . - iI I I I I I - II H I ' I I - E I I '- -. I . I I " " : - .I I - I I‘ - E. . ' - ?a t ; .‘ . i — é ? ? ? ‘ '~ ‘ : ‘ : i : § i : I - . r g _ : v '.: - ¥ " : . - " " ' _- I -' - ' I :: ‘ " J : ' . ' ! r _ = " ; ; 'i E - E l a ? . Er a - ” E m a “ 3: : “ ' *' Ha i l - T . #‘ j é g j ; *‘ F ? c r '- . _ j 4 _ : = . u . : ‘ 7 ‘ . = . ? * ' . _ # t ‘ t - ._ _. I II i F H I I ' f I - I I — I ? - I I I L - II I I I " II I I I I E I I I I II I I I ' I' I ' I. _ - I I II I - Z : - . LE E - I I EI I I I I I I . 12 7 3 * ? m e :5 “ - :1 5 : .- - " ? = " 'f ‘ r ‘ J J ' F F ' F I T . - '" : . .J ? i ; : . ~ 1 " 1 5 . ' - 2 ; " - . " _ : ' . ' . : ' . ! I ' I . ' . - n _. r - “ f - J ii ' g s ' ” ' ". " “ . " . - ’ ". ‘ . t ' i -" _ . -" ' . ' ~ e ' f“ : -. I _. I .- :. I ' '_ . I .' . _- .I . .' I I r __ .I . - .- :_ _ a . ' - H "I I ' ' I. ' _ I .- -. ' .. - I. . . I . .. f. I. I - .- - I I _I I .I - -. . .- r ‘I _ ' I :I .- .- F' I I! pa r t i e s . An y re f e r e n c e in th i s Ag r e e m e n t to a sp e c i ? c a l l y na m e d pa r t y bede e m e d toap p l y to an y su c c e s s o r , he i r , ad m i n i s t r a t o r , ex e c u t o r or as s i g n of su c h pa r t y wh o ac q u ir e d it s in t e r e s t in co m p l i a n c e wi t h th e te r m s of th i s Ag r e e m e n t , or un d e r la w . 19 . Re a l i g n m e n t Ag r e e m e n t No t a De v e l o p m e n t Th e Pa r t i e s ac k n o w l e d g e th a t th i s Ha r r i s Ro a d Re a l i g n m e n t Ag r e e m e n t is no t Ag r e e m e n t wi t h i n th e me a n i n g of RC W 36 . 7 0 B . 1 7 0 — . 2 1 0 . Th i s Ag r e e m e n t do e s no t a p p r o v eth e De v e l o p m e n t or se t fo r t h th e de v e l o p m e n t st a n d a r d s or ot h e r pr o v i s i o n s th a t ap p l y t a n d /o rgo v e r n orve s t th e de v e l o p m e n t , us e , an d mi t i g a t i o n of th e de v e l o p m e n t of th e Pr o p e r t y. An yap p l i c a t i on ( s ) fo r su b d i v i s i o n of th e Pr o p e r t y , bi n d i n g si t e pl a n ap p r o v a l , la n d us e ap p r ov a l orbu i l d i ngpe r m i t s fo r th e De v e l o p m e n t sh a l l be su b j e c t to ap p l i c a b l e pr o c e s s e s se t fo r t h in t h e P as c oMu n i c i pa l Co d e . IN WI T N E S S WH E R E O F , th e pa r t i e s he r e t o ex e c u t e d th i s Ag re e me nt th e da y an d ye a r ?r s t ab o v e wr i t t e n . [S I G N A T U R E S ON TH E FO L L O W I N G PA G E] RE A L I GN M E NT AG R E E M E NT Pa g e 1 5 24 06 / 3 0 / 26 F G : 11 04 77 72 2.1 Page 157 of 194 \O O O Q O N U I A U J N r — I CI T Y OF PA S C O By _ _ _ _ _ — Ha r o l d St e w a r t , Ci t y Ma n a g e r AT T E S T : Kr y s t l e Sh a n k s , Ci t y Cl e r k AP P R O V E D AS TO FO R M : Da n i e l P. Ke n n y , In t e r i m Ci t y At t o r n e y ST A T E OF WA S H I N G T O N ) ss . vv Co u n t y of Fr a n k l i n I ce r t i f y th a t I kn o w or ha v e sa t i s f a c t o r y ev i d e n c e th a t pe r s o n wh o ap p e a r e d be f o r e me , an d ac k n o w l e d g e d th a t s/ h e si g n e d th i s in s t r u m e n t , on oa t h st a t e d th a t s/ h e wa s au t h o r i z e d to ex e cu t e th e in s t r u m e n t an d ac k n o w l e d g e d it as th e , of Ci t y of Pa s c o th a t ex e c u t e d th e wi t hi n an d fo r e g o i n g in s t r u m e n t , to be th e fr e e an d vo l u n t a r y ac t of su c h pa r t y of th e us e s an d pu r p os e s me n t i o n e d in th e in s t r u m e n t . No t a r y Pu b l i c in an d fo r th e St a t e of Wa s h i n g t o n , re s i d i n g at RE A L I GN M E N TAG R E E M E NT Pa g e 1 6 24 06 / 3 0 / 26 F G : 11 04 77 72 2.1 Page 158 of 194 RE A L I GN M E N TAG R E E M E NT Pa g e 1 7 o f24 06 / 3 0 / 26 M y c oex p i r e s : F G : 11 04 77 72 2.1 12 3 4 5 6 Page 159 of 194 ad v : [\ J \O O O \ I O \ U I - l > U. ) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 IN WI T N E S S WH E R E O F , th e pa r t i e s he r e t o ex e c u t e d th i s Ag r e e m e n t th e da y an d ye ar ?r s t ab o v e wr i t t e n . VW A - P A S C O , LL C , an Oh i o li m i t e d li a b i l i t y co m p a n y By : Do m i n i c A. Vi s c o n s i , Jr . It s : Ma n a g e r ST A T E OF OH I O ) ) Co u n t y of ) I ce r t i f y th a t I kn o w or ha v e sa t i s f a c t o r y ev i d e n c e th a t pe r s o n wh o ap p e a r e d be f o r e me , an d s /h e ac k n o w l e d g e d th a t s/ h e si g n e d th i s in s t r u m e n t , on oa t h st a t e d th a t s/ h e wa s au t h o r i z e d to ex e c ut e th e in s t r u m e n t an d ac k n o w l e d g e d it as th e Ma n a g e r of VW A - P a s c o , LL C , th a t ex e c u t e d th e wi t h i n an d fo r e g o i n g in s t r u m e n t , to be th e fr e e an d vo l u n t a r y ac t of su c h pa r t y of th e us e s an d pu r p o s e s me n t i o n e d in th e in s t r u m e n t . SS . No t a r y Pu b l i c in an d f r th St a t e of Oh i o , re s i d i n g at My co m m i s s i o n ex p i r e s : AL I S O N AM B R O S E No t a r y Pu b l i c St a t e of Oh i o My Co m m . Ex p i r e s Ja n u a r y 21 , 20 2 9 RE A L I GN M E NT AG R E E M E NT Pa g e 1 8 o f24 06 / 3 0 / 26 h. (/ W 0/7 Page 160 of 194 Ex h i b i t A HA R R I S RO A D RE A L I G N M EN T -AP R I L3,20 2 6 E RE A L I GN M E N TAG R E E M E NT Pa g e 1 9 o f24 06 / 3 0 / 26 a 5: 5 I z r x t V |\ I» ! .l l .1 I 3!: 1 El i md w n lo t - 1 M1 0 3 ) mu m s - m a ul n a - d mu , Page 161 of 194 >. . , FU T U R E PH A S E AL T E RN A T E BI D SC O P E HA R R I S RO A D RE A L I G NM E N T -AP R I L 3,20 2 6 E RE A L I GN M E NT AG R E E M E NT Pa g e 2 0 o f24 06 / 3 0 / 26 Ifnrrrrrra __ *— Se ct i on A ta m a l iv e sa y-am , ma n an m m d d e - y In n - o d d E x h i B F G : 11 04 77 72 2.1 34 5 6 Page 162 of 194 m. L . . . I . .. . . I . . .... . . _ .. . . L . .. . T _ . I .L . . . _ r . . . . .. . . . I . . . . _ . l . .r l . . _ . .I ... . . . . . . . . u . . .. . EH M W . ?n i a l .. . . . . w n — m .. _ . _ I . ._ _ I . I " _ . _ _ . . I ?r m — A L U M L H M H . . _. .. I . . E - .. . . . . _ - .. . . . . -. . . . . . .. I I . ? ” .. . .. m . .LE W “ .. . . . . . w . . . : . . . . . i u m . . . : . u. . 2. 1 % . . . .. I I . " . I . .I . . u . . I I . . . . . . 1 I . _ . .. I . . Lp . . . . . . . . . . . . uI . . . . .. .. . . . . I . “ .. H . _ . . . M I . . . . . £ Wh a m .I . . I . . . . . u . _ . . "t h a n “ "n . .. . . . m . u H I . . I . . . . . . _. . . .. . . . . .. I . .. . . u . . I .. . _ _ ._ . . . . . r1 . ?. . - . I r _. . . . . n . . .. . . . ‘I .. _ u. L l- I . . : E . I l _ h u u — I . . . . * . m . d l . l . u . . . . - . . . I . . — I - ”5 . . . MW .. - I .t h - a . ”. u . . . . * . . . ._ . . . — L .. . I 1. 1 I. .. . u l . r . . u I . . .. . I . . . . _ .... . . . hw n l .1 . . I . _ . . . _ . I . . n m . . . r m I m _ I . . .. u . ? . . % . 1 . . . . m . . u . L m u . . . L . . . . I . . ? n . . . l . . . . l u - _. u . " . . . " I H W F . “W u .n . . _ . . . _ m n . .. . . . W . . I I . Hu n g ? . .. u w ? v m x . . .. . .. m. . . .. . _ _ . _ _ . _. '- ' u' d ' l ' l l ; ' .I - I - 1$ I h . '- '- -' ul -- I. i - .I I - h u I I ' I l ' I I - I. I - .l ' n l ' -I . ' . r I . - I ' - I I ' I J— u — I - I - I I _l Ia Ii .l . II I ' I - u ' I — J L ‘I L ' . I I " I ' - r | ' - ' .. . - e m ; I : El f - { I ' - _ I . -: _ . *1 . - -_ - I I - 'I - L: n- m r F1 [4 ' _- : ' J - i I ' I I .I ' I ' I "' I - I . ' '- ?i t - E L ' I I ' I I - I L . E II I - "" " " " ' 1 " " '. [I E - r u - _. ' I” . _:-- - ' . I I '- I - i :I'- II I ' _ ' . I - I ' . -: . . . .. . I . _I . l I. L . I . H l II ; I . 1. L l . _ h. .. . . + .1 . . n . .— .r _ .. .I I . L I H I I I I .. . OO \ ] O \ U I - b b J N ! — ‘ WW W W N N N N N N N N N N r — r — t — I r — d r — t — t v — r — t r — t — I WN F - ‘ O O O O V Q L I I A W N P — ‘ O C O O N C N L I I A U J N P — ‘ O C Ex h i b i t C —B a r g a i n an d Sa l e De e d Fo r m AF T E R RE C O R D I N G RE T U R N DO C U M E N T TO : Ci t y of Pa s c o Ci t y Cl e r k Pa s c o Ci t y Ha l l 3r d Fl o o r 52 5 N. 3r d Av e n u e Pa s c o WA 99 3 0 1 BA R G A I N AN D SA L E DE E D Gr a n t o r : VW A - P a s c o , LL C , an Oh i o li m i t e d li a b i l i t y co m p a n y Gr a n t e e : Ci t y of Pa s c o Ab b r e v i a t e d Le g a l De s c r i p t i o n : Lo t 10 of Re c o r d Su r v e y No . 19 5 6 3 1 6 (co mp l et e le g a l de s c r i p t i o n at Ex h i b i t A) As s e s s o r ' s Ta x Pa r c e l No : 11 5 2 1 0 0 4 0 Th e Gr a n t o r , VW A - P A S C O , LL C , an Oh i o li m i t e d li a b i l i t y co m p a n y , fo r an d in co n s i d e r a t i o n of th e su m of Te n Do l l a r s ($ 1 0 . 0 0 ) an d ot h e r go o d an d va l u a b l e co n s i d e r a ti o n , th e re c e i p t an d su f ? c i e n c y of wh i c h is he r e b y ac k n o w l e d g e d , he r e b y ba r g a i n s , se l l s , an d co nv ey s to th e Gr a n t e e CI T Y OF PA S C O , a mu n i c i p a l co r p o r a t i o n of th e St a t e of Wa s h i n g t o n , an d it s su c c e s s o r s an d as s i g n s , th e re a l pr o p e r t y le g a l l y de s c r i b e d in Ex h i b i t A an d de p i c t e d in B, su b j e c t on l y to ma t t e r s se t fo r t h in Ex h i b i t C, si t u a t e d in th e Ci t y of Pa s c o in Fr a n k l i n Wa s h i n g t o n , fo r pu b l i c fo r ri g h t - o f - w a y pu r p o s e s in c l u d i n g wi t h o u t li m i t a t i o n pu b l i c ve hi cu la r an d pe d e s t r i a n tr a v e l , gr a d i n g , st r e e t s , si d e w a l k s , mu l t i - u s e pa t h s , st r e e t li g h t s , an d ut i l i t ie s (i n c l u d i n g wi t h o u t li m i t a t i o n wa t e r , se w e r , st o r m w a t e r , el e c t r i c , ga s , te l e c o m m u n i c a t i o n s, ca bl e an d ?b e r op t i c s , wh e t h e r ow n e d or op e r a t e d by Gr a n t e e or ot h e r ut i l i t i e s pr o v i d i n g se r v i ce to RE A L I GN M E NT AG R E E M E NT Pa g e 2 1 o f24 06 / 3 0 / 26 F G : 110 4 77 7 22 . l Page 163 of 194 \O O O Q O ‘ x U l - B U J N r — t Gr a n t e e an d it s re s i d e n t s vi a fa c i l i t i e s wi t h i n th e ri g h t - o f - w a y pu r s u a n t to pe r m i s s i o n by Gr a n t e e by fr a n c h i s e , pe r m i t or ot h e r au t h o r i z a t i o n ) . DA T E D th i s da y of , 20 2 6 by Gr a n t o r , VW A - P A S C O , LL C . VW A - P A S C O , LL C . By : Do m i n i c A. Vi s c o n s i , Jr . It s : ST A T E OF OH I O ) ) ss Co u n t y of I ce r t i f y th a t I kn o w or ha v e sa t i s f a c t o r y ev i d e n c e th a t pe r s o n wh o ap p e a r e d be f o r e me , an d s/ h e ac k n o w l e d g e d th a t s/ h e si g n e d th i s in s t r u m e n t , on oa t h st a t e d th a t s/ h e wa s au t h o r i z e d to ex e c u t e th e in s t r u m e n t an d ac k n o w l e d g e d it as th e ma n a g e r of VW A - P a s c o , LL C , th a t ex e c u t e d th e wi t h i n an d fo r e g o i n g in s t r u m e n t , to be th e fr e e an d vo l u n t a r y ac t of su c h pa r t y of th e us e s an d pu r p o s e s me n t i o n e d in th e in s t r u m e n t . No t a r y Pu b l i c in an d f r th St a t e of Oh i o , re s i d i n g at My CO I I l I I l l S S l O l ’ l ex p l r e s : AL I S O N AM B R O S E No t a r y Pu b l i c St a t e of Oh i o My Co m m . Ex p i r e s Ja n u a r y 21 , 20 2 9 RE A L I GN M E NT AG R E E M E NT Pa g e 2 2 o f24 06 / 3 0 / 26 L4 D O Page 164 of 194 .. . . _ _ . : .n . . . . . _ _ _ _ . . . . . . . . u _ n . . n . n ._ . . w . . a . n . . a. .. . . .. . . . . . . . . ” . “ .. . . - . . . . . . HP . . . - .. . . . " . . _ m . 1 . . . - “a u r a - m . .3 ” . . . H. .. .u . . . -_ _ - _ . ” u ”I “ in . I. I 1 - n l __ I . .- .x #: 1 1 1 9 4 .. . . . , . . . u I. . . .1 I. .. 1 I1 .r ... "I OO \ ] O \ L l l - I > U J N v — d AC C E P T E D th i s _ da y of , 20 2 6 fo r Gr a n t e e , CI T Y OF PA S C O , by : By _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Ha r o l d St e w a r t , Ci t y Ma n a g e r AT T E S T : Kr y s t l e Sh a n k s , CM C De p u t y Ci t y Cl e r k AP P R O V E D AS TO FO R M : Da n i e l P. Ke n n y , In t e r i m Ci t y At t o r n e y ST A T E OF WA S H I N G T O N ) Co u n t y of Fr a n k l i n ) I ce r t i f y th a t I kn o w or ha v e sa t i s f a c t o r y ev i d e n c e th a t pe r s o n wh o ap p e a r e d be f o r e me , an d s / ac k n o w l e d g e d th a t s/ h e si g n e d th i s in s t r u m e n t , on oa t h st a t e d th a t s/ h e wa s au t h o r i z e d to e x ec ut e th e in s t r u m e n t an d ac k n o w l e d g e d it as th e , of Ci t y of Pa s c o th a t ex e c u t e d th e an d fo r e g o i n g in s t r u m e n t , to be th e fr e e an d vo l u n t a r y ac t of su c h pa r t y of th e us e s an d pu r po s es me n t i o n e d in th e in s t r u m e n t . RE A L I GN M E NT AG R E E M E NT Pa g e 2 3 o f24 06 / 3 0 / 26 F G : 11 04 77 72 2.1 Page 165 of 194 .. . . . n . . . . . . km “1 . . . . 5. . . ”. 5 . . . . . . _ u . . . . _. . . . . . . . .. . 5 . .. ”. . .. . . . . .L H — h — “ ? J — H T W . ” he m — u n m a n ? J . iI m H I W H H m H . . m - u u . n + I. . . “ .. L. . . . I II .. n. . . . .. . . . H . . H I .. . H .F ” . . . . . “ I . . . h . _ . . nl u - - I I .5 5 5 “H .u . .I l . r . 1 1. . . .- .- .. I I . . . .u . “ .- I In . " . _u . - 1 I . . I I. - LI . . . .. II . . I 1 .— «a n . . . p5 , . . . 5. . FE E . . . .- .. 5 - 5 .1 5 ” ”” 1 . . . . . .. . u l . _ _ . . . . I” . .— .. .. I L r .n .. _ . I l u . .. ... ?h l .. . . I I— .I . .- . . _. I. . . . . . . . . . u . . u . . “ | : .. . . . . u . In n “ 1 In . . h. .. . E i u RE A L I GN M E NT AG R E E M E NT Pa g e 2 4 o f24 06 / 3 0 / 26 No t a ry P ub li c inan d fo r th e St a t e of Wa s hi n g t on , re s i d i n g at \O O O \ ] O ' \ U I - I > U J I \ J p — a My co m m i s s i o n ex p i r e s : P G : 110 4 7 77 2 2 .] Page 166 of 194 1 FG: 102705068.5 AGREEMENT ON FUNDING AND CONSTRUCTION OF BROADMOOR INCREMENT AREA ROADWAY IMPROVEMENTS This Agreement on Funding and Construction of Broadmoor Increment Area Roadway Improvements (this “Agreement”) is entered into by and among the City of Pasco, Washington (the “City”), Pasco Public Facilities District, a public facilities district created and existing pursuant to Chapter 35.57 RCW (the “PFD”), and Broadmoor Properties, LLC (“BP,” and, together with the City and the PFD, the ‘Parties”) to provide for certain matters relating to the funding and construction of roadway improvements within and serving the City’s Broadmoor Increment Area created by Ordinance No. 4618 of the City. The City, PFD and BP are each a “Party” and collectively the “Parties” to this Agreement. The Parties agree as follows. Part One. RECITALS A. By the passage of Ordinance No. 4618, the City Council of the City created a tax increment area designated as the Broadmoor Increment Area (the “Increment Area”) that became effective on June 1, 2023, pursuant to the provisions of Chapter 39.114 RCW (the “Act”). B. The purpose of creating the Increment Area is to encourage new private developments within the Increment Area that would not reasonably be expected to occur without the City’s provision of certain public infrastructure improvements within and/or outside of and serving the Increment Area. C. These public infrastructure improvements include certain roadway improvements described in Exhibit A attached to this Agreement and shown on the Broadmoor Development Lot Layout Sketch attached to this Agreement as Exhibit B (together with Exhibit A, the “roadway project descriptions”). D. The roadway improvements described and shown in green in the roadway project descriptions represent those roadway improvements having an estimated cost of $23 million (the “initial roadway improvements”) that the City had been planning to finance with the issuance in August 2024 of approximately $24 million of non-voted limited tax general obligation bonds (“LTGO bonds”) of the City as authorized by the Act and other applicable law. E. The roadway improvements described and shown in red in the roadway project descriptions represent additional roadway improvements having an estimated cost of $11.5 million (the “additional roadway improvements”) that the City had been planning to finance with a second, later issuance of additional LTGO bonds in a principal amount within the maximum principal amount of $39 million authorized to finance roadway improvements serving the Increment Area. F. The City’s LTGO bonds used to finance roadway improvements serving the Increment Area will be issued as general obligations of the City to which the City will pledge its full faith, credit Page 167 of 194 2 FG: 102705068.5 and resources as well as “tax allocation revenues” (as defined by the Act) expected to be received by the City from regular property taxes levied on new private developments within the Increment Area. G. The City intends and expects that tax allocation revenues received by the City from new private developments within the Increment Area during the term of its LTGO bonds issued to finance roadway improvements serving the Increment Area will be sufficient to pay or reimburse all of the City’s debt service payments on those LTGO bonds, either directly from current tax allocation revenues received by the City or by using later-received tax allocation revenues to reimburse the City for earlier debt service payments that were required to be made from the City’s other available tax revenues or other lawfully available money. H. BP is the current owner of the majority of the land included in the Increment Area, and the PFD wishes to purchase approximately 20 acres of land generally depicted as Lots 20 and 24 on the Broadmoor Development Lot Layout Sketch (to be created by future subdivision) within the Increment Area from BP to serve as the site for the construction by the PFD of a new Aquatic Center, as approved by the voters of the City, that would be served by the additional roadway improvements. I. To encourage and facilitate the financing and construction by the City of the additional roadway improvements earlier than otherwise planned by the City, BP and the PFD have agreed to enter into this Agreement to provide certain financial accommodations to the City with respect to the City’s receipts of tax allocation revenues needed to pay debt service payments on the additional LTGO bonds required to finance the additional roadway improvements. J. The financial accommodations to be provided by BP and the PFD to the City pursuant to this Agreement generally consist of the agreement by BP and the PFD to advance funds to the City to reimburse the City for the City’s debt service payments on the additional LTGO bonds made from the City’s other available tax revenues or other lawfully available money (thereby mitigating budgetary impacts on the City’s general fund) as a result of a shortfall in tax allocation revenues available for that debt service payment purpose during the term of the City’s LTGO bonds, with those shortfall advances made by BP and the PFD to be refunded to BP and the PFD from tax allocation revenues received by the City in subsequent years when such collections, if any, are sufficient to be available for such reimbursement purposes during the term of this Agreement. K. The Parties agree that the actions to be taken by them pursuant to this Agreement are intended to encourage the construction of new private developments within the Increment Area as promptly as practicable so that the total amount of tax allocation revenues available to the City for the payment of its LTGO bonds issued to finance the roadway improvements serving the Increment Area will be timely received by the City in amounts sufficient to pay or reimburse, in full, the City’s debt service payments on those bonds. Page 168 of 194 3 FG: 102705068.5 Part Two. AGREEMENT TERMS 1. City Financing and Construction of Broadmoor Roadway Improvements. (a) Subject to the City’s determination that municipal bond market conditions are acceptable to the City, the City will issue tax-exempt LTGO bonds in a maximum principal amount of up to $34.5 million to finance roadway improvements serving the Increment Area, including up to $11.5 million in principal amount of additional LTGO bonds allocated to the construction of the additional roadway improvements described and shown in red in the roadway project descriptions. (b) BP will dedicate and convey to the City by statutory warranty deed, at no cost to the City, all land and interests in land required by the City for construction of the additional roadway improvements. (c) The City shall have full control over the design and construction of the roadway improvements, including but not limited to decisions concerning the selection of contractors pursuant to applicable public works laws and decisions concerning the cost of construction. (d) If the Aquatics Center is to be built in proximity to or within the increment Area, the City will undertake best efforts to: (1) construct the additional roadway improvements in accordance with City standards necessary to accommodate the traffic impacts of the PFD’s proposed Aquatics Center; (2) coordinate City’s construction of the additional roadway improvements to the extent practicable with the PFD’s schedule for the construction of the Aquatics Center; and (3) include necessary frontage improvements related to the Aquatics Center, such as sidewalks, in the design of Road 108. (e) The City will award bids for and manage the construction to completion of the roadway improvements. The City will own, operate and maintain the roadway improvements ; the roadway improvements shall be used for general public use; and neither BP nor the PFD shall have any special legal entitlements to use the roadway improvements. 2. SEPA and Other Conditions. (a) This Agreement is subject to the compliance with applicable federal and state laws, including prior compliance with applicable requirements of the State Environmental Policy Act (“SEPA”). In particular, the City’s obligation to construct the roadway improvements is expressly limited by completion of SEPA review through issuance of a threshold determination; the City’s consideration of the SEPA review and its determination whether it is appropriate to proceed with or without additional or revised conditions based on the SEPA review; and the resolution of any challenges to construction of the roadway improvements in a manner reasonably acceptable to the City. Page 169 of 194 4 FG: 102705068.5 (b) This Agreement is subject further to the City obtaining all required permits for construction of the roadway improvements, and the receipt of responsible bids to construct the roadway improvements serving the Increment Area at a cost that does not exceed the proceeds of the City’s LTGO bonds available for that purpose. 3. Financial Accommodations to be Provided by BP and the PFD to the City. (a) If tax allocation revenues received by the City derived from regular property taxes on new private developments within the Increment Area for any tax collection year are not sufficient to pay 100% of the debt service that was due and payable on the City’s LTGO bonds issued for the roadway improvements in that tax collection year, with the result that the City is required to use and apply other available tax revenues to meet that shortfall in tax allocation revenues, then BP will advance 70% and the PFD will advance 30% of that shortfall to the extent allocated to the debt service payments on the additional LTGO bonds used to finance the additional roadway improvements. For this purpose, a ratable portion of each maturity of the City’s outstanding LTGO bonds issued to finance all of the roadway improvements serving the Increment Area will be allocated to the financing of the additional roadway improvements. For example, if the City issues $33,500,000 principal amount of LTGO bonds, and $10,500,000 of that principal amount is used to finance the additional roadway improvements, then 31% of the debt service payable on the LTGO bonds in that tax collection year will be allocated to the additional roadway improvements. The PFD’s 30% shortfall advance for any tax collection year shall be subject to a cap of $300,000. (b) The City, by January 15 of the calendar year immediately following each applicable tax collection year, will provide to BP and the PFD a statement, based on reports and information received by the City from the Franklin County Treasurer and the debt service payment schedule for the City’s LTGO bonds issued for the roadway improvements serving the Increment Area (a “shortfall report”), showing (i) the total amount of tax allocation revenues with respect to regular property taxes levied for the applicable tax collection year received by the City in that tax collection year, (ii) the pro rata allocations of those tax allocation revenues applied to debt service payments made on the respective portions of the LTGO bonds allocable to the financing of the initial roadway improvements and the additional roadway improvements, (iii) the respective shortfalls in tax allocation revenues related to the debt service payments made on those portions of the LTGO bonds, and (iv) calculations of the 70% and 30% portions of the shortfall related to the debt service payments on the additional LTGO bonds required to be advanced by BP and the PFD, respectively, to the City (the “shortfall advances”). By February 15 of the calendar year immediately following the applicable tax collection year, BP and the PFD will transfer their respective shortfall advances to the City. (c) The obligations of BP to the City under this Agreement shall continue in full force and effect for so long as BP or any other person or entity that is controlled by, controlling, or under common control with BP, continues to be the owner of any land in the Increment Area, irrespective Page 170 of 194 5 FG: 102705068.5 of any subdivision and sale by BP of other parcels of land in the Increment Area to other private entities for the purpose of constructing new private developments in the Increment Area. (d) The City will keep records for each tax collection year that show, on a cumulative basis, the aggregate amount of shortfalls in tax allocation revenues related to the City’s annual debt service payments on the portion of its outstanding LTGO bonds allocated to the financing of the initial roadway improvements and on the additional LTGO bonds allocated to the financing of the additional roadway improvements, respectively. The City also will keep records of the cumulative amounts of BP’s and the PFD’s shortfall advances to the City with respect to debt service payments on the additional LTGO bonds as well as the cumulative shortfalls in tax allocation revenues borne by the City in relation to its debt service payments on outstanding LTGO bonds allocated to the financing of the initial roadway improvements. If, for any tax collection year, tax allocation revenues received by the City exceed the amount of debt service that was paid by the City in that tax collection year, that excess amount of tax allocation revenues shall be applied by the City as follows: first, the City shall reimburse the City for a like amount of all debt service payments on the LTGO bonds previously paid from sources other than tax allocation revenues, such as other available tax revenues or other lawfully available money of the City ; second, on February 15 of the calendar year immediately following each applicable tax collection year, the City shall credit a reimbursement amount (derived from that excess amount of tax allocation revenues) ratably among the City, BP and the PFD to reduce or refund, as applicable, (i) the aggregate unreimbursed amount of the City’s prior debt service payments made from other available tax revenues of the City, (ii) the aggregate amount of BP’s shortfall advances not yet refunded from tax allocation revenues, and (iii) the aggregate amount of the PFD’s shortfall advances not yet refunded from tax allocation revenues; and, third, the City shall apply any remaining tax allocation revenues to any purpose authorized by Ordinance No. 4618. (e) Notwithstanding any other provision of this Agreement, the financial accommodations provided by BP and the PFD to the City under the terms of this Agreement, including any shortfall advances made by BP and the PFD to the City to fund any BP shortfall advance, are not intended by the Parties to constitute, and shall not be treated as, a guarantee by BP or the PFD of payment of the City’s debt service payments on the City’s LTGO bonds, or as a guarantee of the payment of regular property taxes levied on new private developments constructed within the Increment Area. BP and all other owners of taxable property in the Increment Area will be required to pay annual property taxes on their taxable property in the Increment Area as generally provided by Washington law. The purposes of the undertakings by BP and the PFD under this Agreement are, first, to encourage the construction of new private developments within the Increment Area as promptly as practicable, and, second, to assist the City to mitigate any temporary budgetary impacts on the City that may result from the City’s use of funds other than tax allocation revenues for the payment of debt service on its LTGO bonds issued to finance the roadway improvements in the early years during the term of those bonds. 4. Term of Agreement. The term of this Agreement shall end (the “Termination”) on the earlier of: (a) December 31st, 2049; or (b) on the date 30 days following the date of the City’s Page 171 of 194 6 FG: 102705068.5 shortfall report provided to BP and the PFD showing that the respective total amounts of shortfall advances made by BP and the PFD to the City have been refunded in full to BP and the PFD, respectively. Upon Termination, the obligations of the Parties end, including the obligations of BP and the PFD to make shortfall advances to the City and the obligation of the City to refund shortfall advances previously made by BP and the PFD. EXECUTED AND AGREED TO BY THE PARTIES as of the last date written below: CITY OF PASCO, WASHINGTON By ________________________ City Manager Date: ______________________ BROADMOOR PROPERTIES, LLC By ________________________ Managing Member Date: ______________________ PASCO PUBLIC FACILITIES DISTRICT By ________________________ Executive Director Date: ______________________ 6/8/20246/8/2024 6/8/2024 Page 172 of 194 PROJECT ESTIMATE City BP PFD City BP PFD Eastbound ramp and roundabout - Full buildout (see plan sheet)$11,500,000 100% 0% 0% $916,309 $0 $0 Signalized intersection - full buildout (see plan sheet)$3,500,000 100% 0% 0% $278,877 $0 $0 Signalized intersection - full buildout (see plan sheet) * involves ROW acquisition from third party* $4,800,000 100% 0% 0% $382,459 $0 $0 Roadway improvements full buildout: sidewalk (north) pathway (south). Estimate includes signal at Rd 103. Utilities are existing $3,200,000 100% 0% 0% $254,973 $0 $0 Roadway improvements core road (curb & drainage): Utilities are existing except catch basins. $2,700,000 0% 70% 30% $0 $150,593 $64,540 Roadway improvements core road (curb & drainage): Estimate includes roundabout at sandifur and Rd 108. Utilities are existing except catch basins. $4,500,000 0% 70% 30% $0 $250,989 $107,567 2 lanes of traffic and median. Curbs, drainage, partial sidewalk (PFD Facility), no signals or other intersection treatments. Utilities are existing. $3,300,000 0% 70% 30% $0 $184,059 $78,882 $33,500,000 $1,832,617 $585,641 $250,989 ANNUAL DEBT SERVICE SCOPE % RESPONSIBILITY EXHIBIT A Pa g e 1 7 3 o f 1 9 4 EXHIBIT B Pa g e 1 7 4 o f 1 9 4 1 FG: 102740705.1 SUPPLEMENTAL AGREEMENT ON FUNDING AND CONSTRUCTION OF BROADMOOR INCREMENT AREA ROADWAY IMPROVEMENTS This Supplemental Agreement on Funding and Construction of Broadmoor Increment Area Roadway Improvements (this “Agreement”) is entered into by and between the City of Pasco, Washington (the “City”), and Broadmoor Properties, LLC (“BP,” and, together with the City, the ‘Parties”) to provide for certain matters relating to the funding and construction of roadway improvements within and serving the City’s Broadmoor Increment Area created by Ordinance No. 4618 of the City. The Parties agree as follows. Part One. RECITALS A. By the passage of Ordinance No. 4618, the City Council of the City created a tax increment area designated as the Broadmoor Increment Area (the “Increment Area”) that became effective on June 1, 2023, pursuant to the provisions of Chapter 39.114 RCW (the “Act”). B. The purpose of creating the Increment Area is to encourage new private developments within the Increment Area that would not reasonably be expected to occur without the City’s provision of certain public infrastructure improvements within and/or outside of and serving the Increment Area. C. These public infrastructure improvements serving the Increment Area include the roadway improvements described in Exhibit A attached to this Agreement. D. The City expects to finance the roadway improvements with the proceeds of not more than $39.0 million of non-voted limited tax general obligation bonds (“LTGO bonds”) of the City as authorized by the Act and other applicable law. E. The City’s LTGO bonds used to finance roadway improvements will be issued as general obligations of the City to which the City will pledge its full faith, credit and resources as well as “tax allocation revenues” (as defined by the Act) expected to be received by the City from regular property taxes levied on new private developments within the Increment Area. F. The City intends and expects that tax allocation revenues received by the City from new private developments within the Increment Area during the term of its LTGO bonds issued to finance roadway improvements will be sufficient to pay or reimburse all of the City’s debt service payments on those LTGO bonds, either directly from current tax allocation revenues received by the City or by using later-received tax allocation revenues to reimburse the City for earlier debt service payments that were required to be made from the City’s other available tax revenues or other lawfully available money. Page 175 of 194 2 FG: 102740705.1 G. BP is the current owner of the majority of the land included in the Increment Area. To encourage and facilitate the financing and construction by the City of the roadway improvements earlier than otherwise planned by the City, BP has agreed to enter into this Agreement to provide certain financial accommodations to the City with respect to the City’s receipts of tax allocation revenues needed to pay debt service payments on up to $5.5 million in principal amount of the LTGO bonds required to finance the roadway improvements. H. The financial accommodations to be provided by BP to the City pursuant to this Agreement generally consist of the agreement by BP to advance funds to the City to reimburse the City for the City’s debt service payments on that $5.5 million portion (the “BP supplemental portion”) of the LTGO bonds made from the City’s other available tax revenues or other lawfully available money (thereby mitigating budgetary impacts on the City’s general fund) as a result of a shortfall in tax allocation revenues available for those debt service payments during the term of the City’s LTGO bonds, with those shortfall advances made by BP to be refunded to BP from tax allocation revenues received by the City in subsequent years when such collections, if any, are sufficient to be available for such reimbursement purposes during the term of this Agreement. I. The Parties agree that the actions to be taken by them pursuant to this Agreement are intended to encourage the construction of new private developments within the Increment Area as promptly as practicable so that the total amount of tax allocation revenues available to the City for the payment of its LTGO bonds issued to finance the roadway improvements serving the Increment Area will be timely received by the City in amounts sufficient to pay or reimburse, in full, the City’s debt service payments on those bonds. Part Two. AGREEMENT TERMS 1. City Financing and Construction of Broadmoor Roadway Improvements. (a) Subject to the City’s determination that municipal bond market conditions are acceptable to the City, the City will issue tax-exempt LTGO bonds in a maximum principal amount of up to $39.0 million to finance the roadway improvements serving the Increment Area. (b) BP will dedicate and convey to the City by statutory warranty deed, at no cost to the City, all land and interests in land required by the City for construction of the roadway improvements. (c) The City shall have full control over the design and construction of the roadway improvements, including but not limited to decisions concerning the selection of contractors pursuant to applicable public works laws and decisions concerning the cost of construction. (d) The City will award bids for and manage the construction to completion of the roadway improvements. The City will own, operate and maintain the roadway improvements; the roadway Page 176 of 194 3 FG: 102740705.1 improvements shall be used for general public use; and BP shall not have any special legal entitlements to use the roadway improvements. 2. SEPA and Other Conditions. (a) This Agreement is subject to the compliance with applicable federal and state laws, including prior compliance with applicable requirements of the State Environmental Policy Act (“SEPA”). In particular, the City’s obligation to construct the roadway improvements is expressly limited by completion of SEPA review through issuance of a threshold determination; the City’s consideration of the SEPA review and its determination whether it is appropriate to proceed with or without additional or revised conditions based on the SEPA review; and the resolution of any challenges to construction of the roadway improvements in a manner reasonably acceptable to the City. (b) This Agreement is subject further to the City obtaining all required permits for construction of the roadway improvements, and the receipt of responsible bids to construct the roadway improvements serving the Increment Area at a cost that does not exceed the proceeds of the City’s LTGO bonds available for that purpose. 3. Financial Accommodations to be Provided by BP to the City. (a) If tax allocation revenues received by the City derived from regular property taxes on new private developments within the Increment Area for any tax collection year are not sufficient to pay 100% of the debt service that was due and payable on the City’s LTGO bonds issued for the roadway improvements in that tax collection year, with the result that the City is required to use and apply other available tax revenues to meet that shortfall in tax allocation revenues, then BP will advance that shortfall amount to the City to the extent it is allocable to the debt service payments on the BP supplemental portion of the LTGO bonds used to finance the roadway improvements. For this purpose, a ratable portion of each maturity of the City’s outstanding LTGO bonds issued to finance the roadway improvements serving the Increment Area will be allocated to the BP supplemental portion of the LTGO bonds used to finance the roadway improvements. (b) The City, by January 15 of the calendar year immediately following each applicable tax collection year, will provide to BP a statement, based on reports and information received by the City from the Franklin County Treasurer and the debt service payment schedule for the City’s LTGO bonds issued for the roadway improvements (a “shortfall report”), showing (i) the total amount of tax allocation revenues with respect to regular property taxes levied for the applicable tax collection year received by the City in that tax collection year, (ii) the pro rata allocations of those tax allocation revenues applied to debt service payments made on the BP supplemental portion of the LTGO bonds and the other portions of the LTGO bonds allocable to the financing of the roadway improvements, (iii) the respective shortfalls in tax allocation revenues related to the debt service payments made on those respective portions of the LTGO bonds, and (iv) calculations of the portion of the shortfall related to the debt service payments on the BP Page 177 of 194 4 FG: 102740705.1 supplemental portion of the LTGO bonds required to be advanced by BP to the City (the “shortfall advances”). By February 15 of the calendar year immediately following the applicable tax collection year, BP will transfer its shortfall advance to the City. (c) The obligations of BP to the City under this Agreement shall continue in full force and effect for so long as BP or any other person or entity that is controlled by, controlling, or under common control with BP, continues to be the owner of any land in the Increment Area, irrespective of any subdivision and sale by BP of other parcels of land in the Increment Area to other private entities for the purpose of constructing new private developments in the Increment Area. (d) The City will keep records for each tax collection year that show, on a cumulative basis, the aggregate amount of shortfalls in tax allocation revenues related to the City’s annual debt service payments on the BP supplemental portion of its outstanding LTGO bonds issued to finance the roadway improvements and the cumulative amounts of BP’s shortfall advances to the City with respect to those debt service payments. If, for any tax collection year, tax allocation revenues received by the City exceed the amount of debt service that was by the City paid in that tax year, that excess amount of tax allocacollection tion revenues shall be by the City as applied follows: first, the City shall reimburse the City for a like amount of all debt service payments on the LTGO bonds previously paid from sources other than tax allocation revenues, such as other available tax revenues or other lawfully available money of the City; second, on February 15 of the calendar year immediately following each applicable tax collection year, the City shall credit a reimbursement amount (derived from that excess amount of tax allocation revenues) ratably to reduce or refund, as applicable, (i) the aggregate unreimbursed amount of the City’s prior debt service payments on the LTGO bonds issued for the roadway improvements made from other available tax revenues or other lawfully available money and not funded from any shortfall advances made by BP under this Agreement or from shortfall advances made by BP and the Pasco Public Facilities District (the “PFD”) under the Three-Party Agreement (defined below), (ii) the respective aggregate amounts of BP’s and the PFD’s shortfall advances made under the Three- Party Agreement not yet refunded from tax allocation revenues, and (iii) the aggregate amount of BP’s shortfall advances under this Agreement with respect to debt service payments on the BP supplemental portion not yet refunded from tax allocation revenues; and third, the City shall apply any remaining tax allocation revenues to any purpose authorized by Ordinance No. 4618. (e) Notwithstanding any other provision of this Agreement, the financial accommodations provided by BP to the City under the terms of this Agreement, including any shortfall advances made by BP to the City are not intended by the Parties to constitute, and shall not be treated as, a guarantee by BP of payment of the City’s debt service payments on the City’s LTGO bonds, or as a guarantee of the payment of regular property taxes levied on new private developments constructed within the Increment Area. BP and all other owners of taxable property in the Area will be required Increment to pay annual property taxes on their taxable property in the Increment Area as generally provided by Washington law. The purposes of the undertaking by BP under this Agreement are, first, to encourage the construction of new private developments within the Increment Area as promptly as practicable, and, second, to assist the City to mitigate any Page 178 of 194 5 FG: 102740705.1 temporary budgetary impacts on the City that may result from the City’s use of funds other than tax allocation revenues for the payment of debt service on its LTGO bonds issued to finance the roadway improvements in the early years during the term of those bonds. 4. Agreement Supplemental. This Agreement is intended by the City and BP only to supplement, and not to alter or amend, their respective responsibilities under that certain Agreement on Funding and Construction of Broadmoor Increment Area Roadway Improvements entered into on June 8, 2024, by the City, BP and the Pasco Public Facilities District (the “Three- Party Agreement”) by making the provisions herein for BP’s undertaking to provide the additional financial accommodations to the City with respect to the $5.5 million BP supplemental portion of the City’s LTGO bonds to be issued to finance the roadway improvements serving the Increment Area. 5. Term of Agreement. The term of this Agreement shall end (the “Termination”) on the earlier of: (a) December 31, 2049; or (b) on the date 30 days following the date of the City’s shortfall report provided to BP showing that the total amount of shortfall advances made by BP to the City have been refunded in full to BP. Upon Termination, the obligations of the Parties end, including the obligations of BP to make shortfall advances to the City and the obligation of the City to refund shortfall advances previously made by BP. EXECUTED AND AGREED TO BY THE PARTIES as of the last date written below: CITY OF PASCO, WASHINGTON By ________________________ City Manager Date: ______________________ BROADMOOR PROPERTIES, LLC By ________________________ Managing Member Date: ______________________ 6/11/20246/12/2024 Page 179 of 194 #PROJECT PROJECT ESTIMATE City BP PFD City BP PFD 8 Additional Public Roadway/Utilities Improvement TBD $5,500,000 0% 100% 0% $0 $438,235 $0 ANNUAL DEBT SERVICE SCOPE % RESPONSIBILITY EXHIBIT A Pa g e 1 8 0 o f 1 9 4 1 TO: Mayor, Charles Grimm Members of the City Council FROM: Harold Stewart, City Manager DATE: July 20, 2026 City Manager: Held first ever Employee of the Year Nominee luncheon. While the Employees of the Year get recognized, and will be recognized at the Annual Employee Picinic in August, it is also important to recognize the important work of the others who were nominated. While the Department Heads will provide updates specific to their responsibilities here are several priorities the on in addition taking office being worked to Manager the City identified by since regular day to day operational duties (Changes/updates from the last report are highlighted in red): 1. Broadmoor Development- Meetings are ongoing discussing developer interest, progress, and potential City partnership. Agreements are being negotiated. First agreement with Visconsi was presented at the July 6th Council meeting and is on the July 20th agenda for Council action. 2. HAPO Center- Lease expired after December 2025. County and City discussing future, roles and partnership going forward. Lease extension has been provided to the County. On March 3rd the CMO office received a letter from the County Administrator and a check for $1 buying out the City’s interest in the HAPO Center as per the ILA and asserting full control of the Center. Staff is working with legal to assess the legality of the action and any potential recourses. Have received a response from the City’s representation and will discuss further with Council in the near future. 3. Animal Shelter- Serves the entire Tri-Cities. Cost sharing between the three jurisdictions needs re-evaluated and agreed upon. In addition, some issues have arisen with the old facility that will require significant investment to repair. Staff is preparing and identifying the anticipated needs and associated costs to discuss with Council in the near future. A deeper conversation amongst the Tri-Cities city managers has begun regarding the needs and structure of the Shelter going forward. 4. Hiring of Police Chief-Public Announcement was made at the July 13th Council Work Session. 5. Hiring of IT Director – The first recruitment was not successful and the position will be recruited again. 6. FY 27/28 Budget-Staff is preparing budget estimates and needs. Deadline for internal submittal was May 28th. City Manager’s office is preparing to have a discussion with Council regarding a in July projects, pressures, budget picture perspective of and big needs and to receive Council priorities for budget consideration. The plan was to have a Page 181 of 194 2 facilitator for the meeting and beginning the development of a Strategic Plan, however, the costs were higher than expected. Costs of a Strategic Plan will be discussed/considered as part of the upcoming budget process. City Manager is anticipating scheduling a retreat/prioritization session in August. 7. Public Dollars for Public Benefit- This item was tabled by Council until January 2027. 8. Employee Survey – Survey is open for employee participation. 9. Essential Public Facilities and LRAs- Staff is preparing an extension of the moratorium and the other directions from Council for action. 10. Capital Improvement Plan (CIP)/Transportation Improvement Program (TIP) - The City of Pasco scheduled two public engagement meetings to gather community input on updates to CIP and TIP. The first meeting was held on April 8 at City Hall, with both virtual and in-person attendance options available. The second opportunity for community members to participate in-person was held on April 14 at Rey Reynolds Middle School. Staff are in the process of preparing CIP, with presentation to Council planned for month of August and adoption in September. 11. Crash Prevention Zone - Discussion and direction took place at the July 6th Council meeting. The approved letter, signed by the mayor has been provided to DOT and a meeting has been scheduled for the last week of July with to coordinate next steps. 12. Joint Council & Legislative Entity Meetings - During a recent council meeting, there was discussion around coordinating joint Council and legislative entity meetings with key local partners. Council provided potential entities for these meetings to bring up for consideration. These meetings are intended to help strengthen relationships, align on shared priorities, and support Council’s goals and objectives moving forward. Staff is requesting direction from Council on which entities to proceed coordinating annual meetings and to work alongside to build a collaborative agenda. a. Pasco Chamber b. Pasco School District Board c. Franklin County d. Port of Pasco e. Mid-Columbia Libraries Board f. Union Gospel Mission (UGM), Clean Sweep, & U-Turn for Christ g. LBA h. Visit Tri-Cities i. Tri-City Hispanic Chamber of Commerce j. Downtown Business Roundtable k. Public Health District A joint meeting with the Pasco Chamber was held June 23rd. Staff is preparing joint meetings with the other entities identified above. Meetings attended since the last report: Communication meetings with the Mayor, Mayor Pro Tem, and Council all members; Compass; meeting with United Way; meeting with CREATE meeting; and many other internal communication and project meetings. Legal Matters: Below is a summary of the litigation matters currently pending against the City of Pasco. 1. Inosensio Buenaventura v. City of Pasco Police Department & City of Pasco Employee Counsel: Micheal J Throgmorton Page 182 of 194 3 Current Status: Order dismissing the case has been granted with prejudice. • September 2025: The Plaintiff filed a First Amended Complaint against a City of Pasco employee and the City of Pasco Police Department, seeking monetary damages related to an alleges stop. traffic 2020, 25, April The Plaintiff and Fourth their violations of Fourteenth Amendment rights. • December 2025: The Court issued an Order Granting Opportunity to Amend Complaint after finding that the complaint failed to state a claim upon which relief could be granted. • February 12, 2026: The Court granted the Plaintiff’s second Motion for Extension of Time to Amend the Complaint, extending the deadline to February 27, 2026. • February 27, 2026: The Plaintiff filed a Motion for Appointment of Pro Bono Counsel. • request and Bono Counsel Pro for the Plaintiff’s denied The Court 2026: 10, March dismissed the claims against the City of Pasco Police Department contained in the First Amended Complaint. The Court Clerk was also directed to issue a Summons, Notice of Lawsuit, and Request for Waiver of Service to the City of Pasco employee named in the lawsuit. • April 8th, 2026: The City filed a Motion to Dismiss, arguing that the claims are barred by the threeapplicable -to fails otherwise complaint the that of limitations statute year and state a claim upon which relief can be granted. • June 18th, 2026: Motion to dismiss was granted with prejudice. The plaintiff has 30 days to file an appeal to the Ninth Circuit. 2. Dave Swisher & Farm 2005 LLC v. City of Pasco Counsel: Adam Rosenberg & Bob Sterbank Lawsuit & Appeal: Land Use Petition act Challenge Current Status: Appeal filed with Division III of the Court of Appeals • April 2025: The City of Pasco became aware of a lawsuit filed by the Plaintiffs challenging the Hearing Examiner’s approval of the Madison Park North Preliminary Plat. The matter was filed of conditions contesting appeal (LUPA) several Petition Use Land a as Act approval imposed by the Hearing Examiner, including: o Condition 3 – LID ‘No Protest’ Condition: The Hearing Examiner required the Plat to include a statement waiving future protests to the formation of a road or utility LID o 17 Condition – Condition: parks, of collection Required Credit Fee Impact No transportation and school impact fees at the then-applicable rates. It also specified that a credit against TIFs was not required, based on related Findings of Facts and Conclusions of Law determining that the required improvements to Road 52, Burns Road and Deseret Drive was no “system improvements” as that term is defined in state statute, and therefore no credit against impact fees was required. o Condition 19 – Street Improvement Condition: Required the plaintiff t to “ensure that PMC with accordance in constructed alignments designed are road all and 21.15.030(1) and (2), and the City’s codes and standards in relationship to adjoining plats and their streets. o Condition 21 – School Zone Warning Signs Condition - Required the plaintiff to install school zone advance warning beacons, and Rectangular Rapid Flashing Page 183 of 194 4 Beacons at the crosswalk leading to the Rosalind Franklin STEM Elementary School. • December 2025: The Court conducted the hearing on the LUPA petition. • Examiner’s Hearing the affirming order an largely Court The 2026: January issued decision and dismissing the LUPA petition on all but one issue. The Court ruled in favor of the Burns 52 Road and Road the regarding finding 17, No. Condition Plaintiff that i As the result, a improvements.” of City larger constituted part mprovements “system Plaintiff was determined to be entitled to credit against Transportation Impact Fees for the costs associated with those roadway improvements. • March 2026: The Plaintiff appealed the Superior Court’s decision to Division III of the Washington State Court of Appeals. Lawsuit: Complaint Damages Current Status: Pending, awaiting resolution of the LUPA matter • April 2025: Plaintiff filed a lawsuit against the City of Pasco alleging damages resulting from what they characterize as arbitrary, capricious, and unlawful agency actions related to permitting decisions and processing delays associated with the Madison Park North preliminary plat application. • May 2025: The lawsuit was removed to the United States District Court for the Eastern District of Washington. 3. Corey Bitton, Tamara Bitton, Great Basin Land Co. LLC & Spritz, Inc v. City of Pasco and multiple City Employees Counsel: Quinn Plant Current Status: Pending • alleging Plaintiffs the by filed lawsuit a became aware City The 2025: December of arbitrary enforcement of the Pasco Municipal Code, failure to recognize vested permits, and the absence of constitutionally adequate appeal procedures. • February 2026: The City filed a Motion for Judgment on the Pleadings. The Plaintiffs subsequently filed motions seeking leave to exceed the applicable page limits and to expedite the hearing schedule. The City opposed both motions. • March 2026: The Court granted the Plaintiffs’ motions for excess pages and for an expedited hearing. • April 2026: The Court issued a scheduling order governing the progression of the case. 4. Lewis Place, LLC v. City of Pasco Counsel: Ogden, Murphey & Wallace PLLC Current Status: Lawsuit filed, preliminary hearing scheduled for July 1, 2026 • June 2026: The City of Pasco was made aware of a lawsuit filed by the plaintiffs stemming from the City’s hearing examiner’s land use decision granting a special use permit for the construction of an RV park at 434 E Lewis Place. This lawsuit involves a Page 184 of 194 5 Land Use Petition Act (LUPA) challenge to the Hearing Examiner’s conditions of approval. The conditions that the plaintiff was arguing against were: o Condition 1 – Site Plan Compliance Condition: Required the applicant to submit a revised site plan prior to construction permit issuance demonstrating full compliance with PMC 25.160, including RV spacing requirements, open space, landscaping and buffering standards, dimensional requirements for RV spaces, and all supporting measurements and calculations. Failure to demonstrate compliance could result in permit denial. o Condition 2 – Internal Circulation Plan Condition: Required the applicant to submit a revised internal circulation plan prior to construction permit issuance demonstrating safe and functional vehicle movement throughout the site, including compliant traffic circulation, elimination or mitigation of backing movements in one-way drive aisles, and clear identification of travel directions, turning movements, and access points. Additional Special Use Permit review could be required if circulation standards could not be met. o Condition 5 – RV Spacing Verification Condition: Required the applicant to demonstrate compliance with PMC 25.160.070(2) and minimum RV separation standards, including 15 feet side-to-side and 12 feet end-to-end spacing between recreational vehicle units, prior to civil plan approval. o Condition 7 – RV Site Density Reduction Condition: Required the applicant to modify the site layout and reduce the total number of RV spaces as necessary to achieve compliance with PMC 25.160 standards related to spacing, open space, and internal circulation. o Condition 8 – Vehicle Turning Movement Condition: Required the applicant to provide turning movement diagrams demonstrating adequate circulation for recreational vehicles and emergency vehicles, subject to review and approval by the City Engineer and Fire Department. o Condition 9 – Sight Distance Compliance Condition: Required the applicant to ensure that sight distance at the site entrance complied with PMC 25.160.070(3) by adjusting signage, fencing, landscaping, or other site features as necessary to maintain unobstructed visibility. o Condition 16 – Fire Hydrant Installation Condition: Required installation of a minimum of three internal fire hydrants along internal roadways at locations approved by the Fire Department, unless the Fire Marshal determined in writing that fewer hydrants were sufficient and permitted under the Pasco Municipal Code. o Condition 24 – Internal Roadway Design Condition: Required the applicant to revise the internal roadway system to comply with PMC 25.160.070(5), limiting one-way roads to areas with drive-through RV spaces and requiring compliant two-way circulation or alternative access where drive-through spaces were not provided. Human Resources Director, Sara Matzen City of Pasco – Monthly HR Council Report Reporting Month: June 2026 1. Headcount vs. Budgeted Positions • Active Headcount: 451 Page 185 of 194 6 • Budgeted Positions: 510.35 • Variance: -59.35 2. Recruitment Activity • Open Positions (as of month-end): 21 • Positions Filled This Month: 13 • Critical/Hard to Fill positions o Senior Engineer: Related experience for the role – specific engineering license. Involving staffing agency for assistance. The role is reposted on our careers page and external job boards. We have one candidate scheduled to start 7/20; currently have 1 additional vacancy. o Senior Traffic Engineer: Position is looking for specific license & exp. with traffic design that is hard to find. Involved staffing agency for assistance, the role is reposted on our careers page and external job boards. Conducting compensation analysis to consider a wage increase. 3. Medical/Rx Plan Cost – Trends & Budget to Actual • YTD (Budget vs. Actual): $4,830,990 vs $4,385,794 • % of Budget Used YTD: 91 % 4. Year to Date (YTD) Medical Claim Costs by Plan 5. Leave Counts (Aggregate Only and only those currently out on continuous or intermittent) • Protected Leave of Absence (PFML, FMLA) o Intermittent Schedule: 14 Employees o Continuous: 17 employees • Workers’ Compensation: 2 employees 7. Worker Compensation Claims (for prior month) • # of incidents: 1 • # of timeloss cases: 0 • Total YTD # of Cases: 27 8. Turnover Rate (YTD) Page 186 of 194 7 • Voluntary: 2.91% • Involuntary: 1.12% • Total Turnover YTD: 5.38% • Average Length of Service at separation: 4.5 years 9. Strategic Projects / Updates • Provided Human Resources support to successfully staff the Aquatics Center for its June opening. • Coordinated and facilitated the Police Chief recruitment interview process. • Continued collective bargaining negotiations with the IAFF Administrative bargaining unit for its initial collective bargaining agreement. • Coordinated and facilitated interviews for the IT Director recruitment. Finance Director, Kevin Hebdon Fiscal Year-End & Audit Readiness SAO Engagement: We have continued coordinating with the Washington State Auditor's Office (SAO) regarding the Annual has SAO The audit. the upcoming (ACFR) Report Financial Comprehensive and by we if that confirmed provide the ACFR July 20 they meet can remain confident , they the September 30 federal deadline for the grant program review, which also requires completion of the financial statement audit. 2027-2028 Budget Development Budget Progress: While our primary focus has been completing the ACFR, budget development continues to move forward. both balance staff as continuing is work planned, than slower been has Progress but priorities. Labor Cost Modeling: Payroll is currently completing the position budgeting module, which will calculate salaries for all authorized positions, cost including step progression, -of- other and (COLA), living adjustments anticipated compensation changes. Personnel costs represent approximately 80-85% of City expenditures, making this a critical component of the budget process. This have created new departments been particularly detailed as process year's has organizational structures and general ledger accounts. Staff assignments are being aligned minimize yearto budgeting the within correctly system -and adjustments end improve financial reporting accuracy. We anticipate completing the 2027 base labor budget by July 16, followed by compensation assumptions, targeted labor budget and review, data validation, with a draft for July 24. Revenue Forecast & Budget Outlook: Concurrently, we are finalizing revenue forecasts and compiling departmental budget requests. By July 24 high level projected including the picture, budget first to have expect we , gap the between anticipated revenues and expenditures, providing the foundation for upcoming budget discussions. Page 187 of 194 8 Utility Billing Staffing Update: Mariano Rodriguez was successfully promoted to Utility Billing Specialist following the reclassification of a lower-level position. As departmental processes have become more streamlined, the need shifted toward higher-level technical responsibilities. Mariano is progressing well in training and has been a valuable addition to the team. Process Improvements: We have eliminated the requirement for management staff to carry a wirelessly connected iPad to respond to after-hours customer calls. Our contracted answering service now utilizes enhanced decision trees and scripted guidance to resolve situations previously escalated to management. This change has improved responsiveness to customer inquiries while significantly improving staff morale and work-life balance. Summer Water Shut-Off: We are currently in the annual summer "hot months" period during which water service cannot be disconnected for non-payment. Utility Billing staff continue proactive outreach to delinquent customers, encouraging payment and establishing communication while complying with seasonal shut-off restrictions through September. Banking Improvements Internal Controls: As new staff members have joined the department, we have strengthened banking authorizations and segregation of duties. These improvements enhance internal controls over payments, wire transfers, ACH transactions, and other banking activities, further safeguarding public funds. Operational Efficiencies: We have implemented several new banking services through U.S. Bank that improve efficiency while reducing administrative effort and cost. • Accounts Payable Optimizer: This vendor payment platform manages payment card credit virtual or preferences eligible for while identifying vendors ACH payments. In addition to increasing payment efficiency, it extends the City's cash float, allowing funds to remain invested longer and increasing interest earnings and rebate opportunities. • Payroll Direct Deposit Visa Cards: Employees who prefer not to provide personal banking information—or who are unable to establish a traditional bank account— will now have the option of receiving wages through a payroll debit card, effective date yet to be established. We anticipate this program will be especially beneficial for to our relationship and banking Due and seasonal temporary employees. account analysis credits, this program will be provided at essentially no additional cost to the City as is the case with all of these operational enhancements through US Bank. • Account Payroll Validation: banking employee new service validates This information in real time, eliminating the need for pre-note files and first-payroll paper checks. including New employee accounts can be verified almost immediately, Page 188 of 194 9 routing information and account ownership, resulting in a faster, more secure onboarding process. Organizational Culture & Staffing Transitions Finance Supervisor: Joseph Mugo continues to grow into his Finance Supervisor role and is making steady progress. Accounting Supervisor: Christine Tudor has been an excellent addition to the department, providing strong leadership in Payroll Melody transition created by Garcia's and Accounts Payable while supporting the promotion. We also have a significant situation with a staff member out on intermittent leave that requires Christine's attention in back filling these duties and responsibilities. A little bit of baptism by fire for her. Staff Accountants: AJ Garza has assumed responsibility for Capital Improvement Projects (CIP) and Fixed Assets and has Staff a into transitioned Garcia valuable contributions. make to continues Melody Accountant role through an internal promotion, bringing her Accounts Payable experience into her expanded responsibilities. Beginning August 3, Suzie Benitez will return to the City as a Staff Accountant, a position she previously held. We are excited to welcome her back to the team. One Staff Accountant vacancy remains. We intend to evaluate operational needs and the overall budget outlook before determining whether to fill that position. Accounting Assistant Recruitment: Christine and Julie are currently reviewing applications for the Accounting Assistant position vacated by Melody Garcia. Interviews are scheduled for July 10. Fiscal Impact: Department restructuring and staffing transitions continue to track at little to no net budget impact. Team Culture: Overall team morale continues to strengthen as strive to fill positions, train new staff, and hope for improved work life balance for all. We recently held a brief cornhole tournament during a staff meeting, teamfor opportunity an enjoyable provided which building. ongoing Combined with process improvements and the addition of new team members, the department continues to build a positive and collaborative work environment. we continued support your and appreciate Pasco as residents the to serve proud We are of strengthen our financial operations, modernize our services, and build a high-performing Finance Department. Community & Economic Development Deputy Director, Craig Raymond Pre first has held staff CED the - development the Visconsi to Application meeting related in Broadmoor. A second applicant had a pre-app meeting scheduled but delayed it so they can finish up some coordination with their team. Page 189 of 194 10 Additional on the to have continued types permit be added to - are month New line portal. this Commercial Plumbing and Mechanical Permits and Commercial Tenant Improvement Permits will be added by end of next week. CED staff and I.T. continue to work with software vendors to solve on-line payment problems Code Enforcement Activity: • Complaints received – 173 • Code cases opened – 116  Building Issues - 46  Dangerous buildings - 4  Fire hazards – 38  Public nuisance – 27  Zoning Issue - 1 • Code cases closed – 48 • Cases to be followed up on – 82 • Cases that went to Code Board – 0 • Voluntary Correction agreements issued – 1 • Backlogged Complaints pending verification – 33 • Total open cases - 947 • Counter/Hallway contacts – 116 • Phone calls received (ring central and cell phone) – 910 The Code Enforcement officers for the month of June have continued to focus on outreach specifically for areas and properties with a high Fire Hazard. In order to focus on this and other concerns temporary code officers were hired. The temp staff not only addressed Fire Hazards with continuous follow up they have also been tasked with addressing unlicensed venders. Staff are inspecting, validating, and uploading their own photos, opening cases, and verifying compliance (with assistance). Staff have been working with property owners, one-on-one and creating timelines for compliance based on level of complaints and severity. They are actively monitoring for unlicensed vendors and have attained compliance with the vendors that they do come in to contact with. Staff have received a large number of complaints for dust control, unlicensed vendors, fire hazards, and homeless encampments To address a few wins for Code Enforcement and the City of Pasco: • 4110 W. Marie St was a known Hoarding house that has received dozens of complaints over the years. CEO Mendoza worked with the family and recently gained compliance and complements from neighbors. • 7617 W. Court St. was found to have between 45 and 60 goats on there property in a zone that allowed 2. CEO Gomez worked with the owner and slowly gained compliance on June 30th. • Staff successfully had an accumulated 26 acres of tall, dead and dry vegetation mowed prior to July 4th. This does not include other properties that were also cleaned in preparation of the Firework season. Public Works Director, Maria Serra July 2026 City Manager’s Report - Public Works Department Page 190 of 194 11 1.Regional partnerships and upcoming advocacy opportunities a . Transportation Legislative Tour organized by Good Roads Association The Benton Franklin Walla Walla Good Roads Association (BFWGRA) is organizing a legislative on transportation highest region's the of tour priorities August 19 biregular its followed by , - monthly meeting. Public Works Director Maria Serra, who serves as Co-Chair of the BFWGRA Legislative Committee, is working with Ben Franklin Transit to develop the approximately 3.5-hour tour route. The tour a at look firsthand with legislative and state legislators provide will candidates transportation projects that are critical to supporting regional mobility, economic development, and public safety. Featured projects include: 1. US Highway 12 – Phase 8 2. US 12 / "A" Street Crossing Improvements (City of Pasco) 3. SR 240 / I-182 / Aaron Drive Complete Streets Improvements 4. Columbia Center Boulevard Widening 5. US Highway 12 / Clinton Street Interchange 6. Road 76 Overpass (City of Pasco) With two of the six featured projects located in Pasco, the tour provides an important opportunity to City's significance, regional their the transportation priorities, and showcase highlight strengthen relationships with state policymakers. By providing decision-makers with an on-the- ground understanding of these projects, the City and its regional partners aim to build support for future legislative and funding opportunities. Due to limited project presenters, legislators and legislative will be given to seating, priority candidates, and members of the BFWGRA Executive Board. Additional participants may be accommodated as space allows. b. Washington's Water Future: Tri-Cities Regional Roundtable attendance Public Works leadership and City Manager’s office have been invited to participate in a regional roundtable discussing Washington’s Water Future tentatively scheduled for August 3. Attendance is via invitation only. Washington’s Water Future is a new statewide initiative led by Governor Bob Ferguson and the Washington growing water State Department of Ecology to help Washington prepare for challenges. This summer, Ecology is hosting regional and sector-based roundtables with Tribal governments, en utilities, industries, agricultural governments, local groups, vironmental together bringing By Washington. community groups and organizations, many across different voices, Ecology is hoping to build a shared understanding of the current and future challenges, interests, needs, and solutions. These conversations can help identify a range of potential future policy, planning, and on-the-ground actions to respond to impacts of climate change on our water and safeguard ample and clean water for today and for the future (Washington’s Water Future webpage). c. Strategic partnership with Benton Franklin Council of Governments (BFCOG) Public Works, Community and Economic Development and City Manager’s office will participate in a workshop with Benton Franklin Council of Governments (BFCOG) on August 10. This Page 191 of 194 12 meeting is an opportunity for key staff from BFCOG and the City of Pasco to share strategic priorities and discuss opportunities for collaboration over the next 12 months. BFCOG serves as the region’s metropolitan planning organization and plays a key role in coordinating transportation planning, administering certain federal transportation funding programs, supporting regional legislative and policy discussions, and facilitating collaboration among local jurisdictions. BFCOG will be meeting individually with member jurisdictions in order to fully plan upcoming work which will be essential to regional and local transportation funding. 2. Water and Sewer: 2026 Mid-Year System Performance Water System Pasco's water system continues to meet increasing demand as the community grows: • Produced 2.45 billion gallons of drinking water in the first half of 2026, an 8% increase from last year in the same period. • The West Pasco Water Treatment Plant more than doubled production after the expanded facility became operational late last year, improving both system reliability and operational efficiency. • Responded to 45 after-hours water emergencies and 26 after-hours irrigation calls. • Completed 34 new water service connections and responded to 1,774 utility locate requests. Sewer System The City's wastewater system continues to perform reliably while accommodating growth. • The 9th & Washington Lift Station, which conveys about 75% of the City's wastewater, is projected to handle 1.6 billion gallons this year, up from 1.4 billion gallons in 2025. • The Maitland Lift Station continues to operate with gradual increase of flows as development in eastern Pasco and the LID No. 152 areas continue developing. Page 192 of 194 Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure. City Council Goals QUALITY OF LIFE 2024-2025 Enhance the long-term viability, value, and service levels of services and programs. FINANCIAL SUSTAINABILITY Promote a highly functional multi-modal transportation system. COMMUNITY TRANSPORTATION NETWORK Implement targeted strategies to reduce crime through strategic investments in infrastructure, staffing, and equipment. COMMUNITY SAFETY Promote and encourage economic vitality. ECONOMIC VITALITY Identify opportunities to enhance City of Pasco identity, cohesion, and image. CITY IDENTITY Page 193 of 194 METAS DEL CONCEJO MUNICIPAL 2024-2025 Promover una alta calidad de vida a través de programas, servicios y inversion apropiada y reinversión en la comunidad infraestructura comunitaria. CALIDAD DE VIDA Promover viabilidad financiera a largo plazo, valor, y niveles de calidad de los servicios y programas. SOSTENIBIILIDAD FINANCIERA Promover un sistema de transporte multimodal altamente funcional. RED DE TRANSPORTE DE LA COMUNIDAD Implementar estrategias específicas para reducir la delincuencia por medios de inversiones estratégicas en infraestructura, personal y equipo. SEGURIDAD DE NUESTRA COMUNIDAD Promover y fomentar vitalidad económica. VITALIDAD ECONOMICA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen. IDENTIDAD COMUNITARIA Page 194 of 194