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HomeMy WebLinkAbout2026.08.17 Council Meeting Packet AGENDA City Council Regular Meeting 7:00 PM - Monday, August 17, 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 192758662# 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 160 Regular Agenda and considered separately. 5 - 39 (a) Approval of Meeting Minutes for July 27th, August 3rd, and August 10th To approve the minutes of the Pasco City Council Workshop Meeting Minutes held on July 27, 2026, Pasco City Council Regular Meeting Minutes held on August 3, 2023 and Pasco City Council Workshop Meeting Minutes held on August 10, 2026. 40 - 41 (b) Bills and Communications - Approving Claims in the Total Amount of $5,745,796.33 $5,745,796.33 of amount total claims in approve To the ($3,491,867.71 in Check Nos. 279750 - 280129; $866,960.37 in Electronic Transfer Nos. 853887 - 854115; $26,503.00 in Check Nos. 55430 - 55465; $1,360,465.25 in Electronic Transfer Nos. 30246324 - 30247090). 42 - 44 (c) Franklin County Mosquito Control District Board of Trustees Appointment of Mark Willer To approve the appointment of Mark Willer to represent the City of Pasco on the Franklin County Mosquito Control District Board of Trustees which expires December 31, 2027. 45 - 62 (d) Affordable Pasco of the Adopting City 4774 Resolution – Housing Policies and Procedures Manual for HB 1406 Funds To approve Resolution No. 4774 adopting the City of Pasco Affordable Housing Policies and Procedures Manual for administration of House Bill 1406 affordable housing funds. 63 - 78 (e) Resolution 4775 - Updated Tri-Cities HOME Consortium Citizen Participation Plan To approve Resolution No. 4775, Updating the Tri-Cities HOME Consortium Participation Plan. (RC) MOTION: I move to approve the Consent Agenda as read. 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 160 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, into residency county or city the 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 79 - 111 (a) Public Hearing to Consider Lightspeed Networks Inc. Franchise Renewal CONDUCT PUBLIC HEARING 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 112 - 119 (a) Ordinance 4852 - Amending PMC 10.70.080 Parking Prohibited MOTION: "I move to adopt Ordinance No. 4852, an ordinance of the city of Pasco, Washington, amending Pasco Municipal Code section 10.70.080 “Schedule III – Parking Prohibited at all Times on Certain Streets,” to establish new parking prohibited area on N 27th Ave south of W Sylvester St, and, further, authorize publication by summary only." 120 - 138 (b) Resolution 4776 - Adoption of Water Use Efficiency Program Goals MOTION: I move to approve Resolution No. 4776, establishing Water Use Goals. 139 - 143 (c) Cannabis – Resolution Setting a Public Hearing to Consider an Amendment to PMC 25.10.025 MOTION: I move to approve Resolution No. 4777 setting 7:00 p.m. on Tuesday, September 8, 2026, as the time and date for an open record public hearing to consider an amendment to Pasco Municipal Code increasing the cannabis retail license density limit from four (4) to five (5) licenses, and increasing the number of licenses authorized through the State's Social Equity in Cannabis Program from one (1) to two (2). 10. UNFINISHED BUSINESS Page 3 of 160 11. NEW BUSINESS 12. MISCELLANEOUS DISCUSSION 144 - 158 (a) City Manager Report 13. EXECUTIVE SESSION (30) a) Discussion with legal counsel about current or potential litigation per RCW 42.30.110(1)(i) To review the performance of a public employee per RCW b) 42.30.110.(1)(g) 14. ADJOURNMENT 15. ADDITIONAL NOTES 159 - 160 (a) Adopted Council Goals (Reference Only) Page 4 of 160 AGENDA REPORT FOR: City Council August 6, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Gabriela Sanchez, City Clerk City Manager SUBJECT: Approval of Meeting Minutes for July 27th, August 3rd, and August 10th I. ATTACHMENT(S): July 27, 2026 Workshop Meeting Minutes August 3, 2026 Regular Meeting Minutes August 10, 2026 Workshop Meeting Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Workshop Meeting Minutes held on July 27, 2026, Pasco City Council Regular Meeting Minutes held on August 3, 2023 and Pasco City Council Workshop Meeting Minutes held on August 10, 2026. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 5 of 160 MINUTES City Council Workshop Meeting 7:00 PM - Monday, July 27, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar MEETING INSTRUCTIONS FOR REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so (website the via City’s online the out filling by form www.pasco- wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this workshop. The Pasco City Council Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum atstreamed and Richland Cable Pasco in and www.pasco- wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. To listen to the meeting via phone, call 1-332-249-0718 and use access code 981 152 572#. 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 dias antes para la disponiblidad. (Spanish language dos garantizar interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) 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, David Milne; and Charles Grimm Councilmembers attending remotely: Councilmembers absent: Staff present: Harold Stewart, City Manager; Richa Sigdel, Deputy City Manager; Page 1 of 17Page 6 of 160 Angela Pashon, Interim Parks & Recreation Director; Kevin Crowley, Fire Chief; Kevin Hebdon, Finance Director; Drew Pollom, City Attorney; Craig Raymond, Deputy Community & Economic Development Director; Brent Cook, Police Chief; and Gabriela Sanchez, City Clerk The meeting was opened with the Pledge of Allegiance. OATH OF OFFICE - POLICE CHIEF Mayor Grimm administered the Oath of Office to Police Chief, Brent Cook. The Mayor called a 9 minute recess to allow for photos at 7:06 PM. The meeting resumed at 7:15 PM. EXECUTIVE SESSION Council adjourned into Executive Session at 7:15 PM for 20 minutes returning at 7:35 PM to discuss current or potential litigation per RCW 42.30.110(1)(i) with the City Manager, Deputy City Manager, and City Attorney. At 7:35 PM Mayor Grimm announced that the Executive Session would continue for another 5 minutes or until 7:40 PM. Mayor Grimm called the meeting back to order at 7:40 PM. VERBAL REPORTS FROM COUNCILMEMBERS Councilmember Perales recognized the successful unveiling of the Peanuts statue at the park, thanking Seth Vandable, the Pasco Arts and Culture Commission, and past council members for their support of the project. He noted that the statue has enhanced the park and encouraged the community to visit it. Mayor Pro Tem Milne highlighted the successful unveiling of the Peanuts statue, commending those involved in bringing the project to completion, including City staff, community members, and former councilmembers. Mayor Pro Tem noted the strong community attendance and expressed appreciation for seeing the long-envisioned project become a reality. He also reported attending the grand opening and ribbon- cutting for the Home2 Suites by Hilton near the Pasco Airport, recognizing the investment in new lodging accommodations and noting the attendance of City staff, Port of Pasco commissioners, and community partners. He commented that new hotel development supports tourism and visitation to Pasco and the Tri-Cities. Councilmember Hernandez reported attending the Peanuts statue unveiling and noted the strong community turnout and positive atmosphere. He also highlighted the Farmers Market following the event, stating that both activities were well attended and contributed to a successful community event. Page 2 of 17Page 7 of 160 Mayor Grimm thanked fellow councilmembers for attending recent community events on their behalf while they were volunteering to prepare meals for church groups from across the Tri-Cities. He expressed appreciation for the continued commitment of the Council to serving the community. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC COMMENT Presentation - Cannabis - Revenue & Licenses City Attorney Pollom introduced a presentation regarding cannabis licensing regulations and revenue, with Aaron Washington from the Washington State Liquor information additional to attendance provide Board Cannabis and in regarding the state licensing process. The presentation provided an overview of the state’s cannabis licensing framework, established through Initiative 502, and explained that the Liquor and Cannabis Board regulates cannabis retailers, producers, and processors. Staff currently retail cannabis permits Pasco the City that explained of establishments only and does not allow cannabis producers or processors. Under the City’s municipal code, Pasco allows up to four cannabis retail licenses, including one social equity license. All four available retail licenses are currently in use. Staff noted that the state originally allocated Pasco up to four retail licenses and that any future changes to local limits would not create additional state-issued licenses. The presentation included information regarding the state’s social equity cannabis licensing program, which was created to provide licensing opportunities for individuals impacted by historical barriers to participation in the cannabis industry. Staff noted that additional state licensing opportunities are not expected to become available outside of the social equity program until approximately 2032. Deputy City Manager Sigel provided an update regarding cannabis revenue received by the City. Staff is working with the Washington State Department of Revenue allocations determine and revenue cannabis verify and review to whether any discrepancies exist. Additional information is expected by the end of August or early September. Staff explained that because Pasco currently allows only retail cannabis sales, the City receives approximately 1.5% of applicable cannabis revenue allocations, along with potential per-capita distribution. Staff reviewed options available to Council, including maintaining the current cannabis regulations, increasing the retail cap, allowing cannabis producers and processors guidance, and studies additional or City, the within requesting to changes any that noted Staff these of combination a pursuing options. cannabis regulations would require coordination with the Liquor and Cannabis Board, review by the Planning Commission, public hearings, and formal Council action. Page 3 of 17Page 8 of 160 Aaron Washington, Program Manager with the Washington State Liquor and Cannabis Board’s Social Equity Program, thanked the Council and indicated he was available to answer questions and provide additional details regarding the state’s cannabis licensing and social equity programs. Mayor Pro Tem Milne asked staff to clarify whether the approximately $41,500 in cannabis revenue represented the amount received by the City in the prior year. Deputy City Manger Sigdel confirmed that the figure was the previous year's amount State Washington the audit with the that explained and ongoing the its receiving is City that Revenue to intended is of Department verify appropriate allocation. She further explained that, similar to other state collected taxes, only a portion of taxes generated within the City are distributed back to the City. the was amount revenue that Pro expressed Tem concern Mayor significantly lower than what had originally been anticipated when cannabis was legalized, noting that the funding would not have a substantial impact on major City expenses. Deputy City Manager acknowledged that while significant taxes are generated through cannabis sales, the distribution of those revenues is determined by state law. Councilmember social the regarding equity requested Figueroa clarification cannabis licensing process and how it differs from the traditional cannabis licensing process. Aaron Washington with the WA State Liquor and Cannabis Board explained that prior to the social equity program, applicants participated in a process that included a lottery and merit based system. He explained that the social equity program, established in 2020, created an eligibility and scoring process designed to prioritize individuals disproportionately impacted by the enforcement of cannabis laws. Applicants must meet specific qualifications, and a third-party contractor evaluates applications using a scoring rubric to determine eligibility and priority. Washington clarified that meeting social equity eligibility requirements does not guarantee issuance of a cannabis license, it only allows an applicant to proceed through the separate cannabis licensing process. Washington explained that applicants must still meet all licensing requirements, including securing funding, obtaining a suitable location, and receiving approval through the applicable local jurisdiction. The liquor and Cannabis Board notifies the city, county, or town when an applicant proposes a cannabis business location, allowing the local authority an opportunity to provide input or objections. He noted that while the board has authority to proceed with licensing, local concerns and objections are considered during the process. Washington also explained that there is no required timeframe for social equity applicants to complete the licensing process. The timeline varies depending on factors such as obtaining capital, securing real estate, and identifying an eligible location that complies with zoning requirements and buffer restrictions. Social equity applicants may pursue locations throughout Washington State where cannabis businesses are permitted. Councilmember Campos asked whether the social equity cannabis licensing process is more difficult to obtain than the traditional licensing process. Aaron Washington explained that the social equity process includes additional eligibility Page 4 of 17Page 9 of 160 requirements and a scoring rubric designed to identify applicants who have been disproportionately impacted by cannabis enforcement. He noted that while eligibility determination may be challenging, applicants often face additional location. approved an and estate, in capital, securing obstacles real Councilmember Campos also asked how the City's original allocation of four cannabis retail licenses was determined. Washington explained that allocations were geographic considerations density and on population primarily based established by the state prior to the creation of the social equity program. He noted may applicants program, equity select current the under that social locations anywhere in Washington State where cannabis businesses are allowed, subject to local regulations. Councilmember Campos asked whether Pasco would have received a larger allocation if the City's current population had been used during the original allocation process. Washington explained that allocations were determined using a formula established by the Office of Financial Management and that he could not speculate on how the current population would have impacted the original allocation. Mayor Grimm called for public comment Zachary LLC, Cannabis Compass of and resident Pasco Fairley, co-owner addressed the Council regarding the company’s social equity cannabis retail license application. Mr. Fairley stated that Compass Cannabis chose Pasco because it is their community and expressed their desire to establish a business that the City and residents could be proud of. Mr. Fairley shared that the proposed location is 5804 Road 90, the former Green2Go location, and noted that the property has operated as a cannabis retail location for nearly three years. He stated made personal significant has financial ownership the that group commitments, including personal guarantees and financing, to pursue the community to listen to efforts company’s the emphasized He opportunity. feedback and work collaboratively with neighbors and the property owner. Mr. Fairley highlighted the purpose of the social equity program, stating that it creates opportunities for individuals who historically have faced barriers to entering the cannabis industry. He expressed that a successful, locally owned social equity retailer in Pasco could reflect positively on the City’s growth and commitment to creating that stating by concluded opportunities Mr. residents. for Fairley Compass Cannabis intends to be a responsible business, a good neighbor, and a positive member of the Pasco community. Steve Guerrillo, Pasco resident, addressed the Council regarding the potential establishment of a cannabis retail business in the City. Mr. Guerrillo shared his personal born in raised and the was noting that Pasco, to connection he community, attended local schools, and participated in youth sports programs at the structure, with credited he providing Center, King Luther Martin which mentorship, and valuable life skills during his childhood. Mr. Guerrillo stated that he intends to build a locally owned business in the community that supported him growing shared He operation. outside an bringing than rather up his in professional experience as a sales director for a large cannabis producer and processor in Seattle and noted his background in cannabis consulting for venture capital firms nationwide. Mr. Guerrillo expressed his desire to operate a clean, Page 5 of 17Page 10 of 160 professional cannabis retail business in Pasco and committed to giving back to the community by donating a portion of sales proceeds to youth sports programs at the Martin Luther King Center. Adam Bonus, a West Richland resident and lead pastor of Grace Church Tri- Cities in Pasco, spoke in support of maintaining the City’s current cannabis regulations (Option One). Mr. Bonus expressed concerns regarding expanding cannabis availability, stating that while the industry promotes economic benefits such as revenue and jobs, he believes there are potential social and public health impacts that should also be considered. Mr. Bonus discussed concerns regarding increased cannabis potency compared to previous decades and cited research linking high-potency cannabis use with mental health concerns. He referenced the economic impacts associated with mental health challenges in Washington State and questioned whether expanding cannabis access could contribute to additional community impacts. Mr. Bonus stated that his church supports a thriving and flourishing Pasco community but expressed his belief that additional cannabis retail current the compared goal. that He align not would locations with understanding of cannabis impacts to past changes in public perception regarding tobacco use and encouraged the Council to consider potential long-term effects, particularly amid existing mental health challenges. Samuel Alaniz, Pasco resident, addressed the Council in support of a social equity cannabis retail opportunity. Mr. Alaniz shared his longstanding connection to the community, noting that he was born and raised in the area, raised his children in Pasco, operated a local business, and has worked in sales and marketing throughout the Tri-Cities for more than 30 years. Mr. Alaniz stated that he values trust, honesty, and treating people with respect, and that he intends to bring those values to his role as general manager if the business is approved. He noted that he would oversee daily operations, serve as a point of contact for customers, neighbors, and employees, and use his bilingual English and Spanish skills to better serve the community. Mr. Alaniz highlighted that the proposed business would represent local ownership, diversity, and opportunity, describing it as Washington State’s first African-American veteran and Hispanic-owned social equity business create to plans the He stated business. cannabis that approximately 15 to 25 local jobs and operate as a professional and responsible community business. Mr. Alaniz acknowledged concerns that the City may already have sufficient cannabis retailers but expressed his belief that there is room for additional local ownership opportunities. He noted that an existing Pasco cannabis business owner supports the proposal and does not believe it would negatively impact current operations. He also emphasized that the proposed location has already operated successfully as a licensed cannabis retail location. Mr. Alaniz concluded by asking the Council to support the opportunity for local residents to own and operate the business, stating his commitment to earning the community’s trust through responsible operations and service. Councilmember Cotta spoke in opposition to approving an additional cannabis retailer in Pasco. He stated that the City had previously established its policy following public input and argued that changing the policy without new public engagement or updated impact studies was unwarranted. He also contended that Page 6 of 17Page 11 of 160 the existing market demand for cannabis retailers has already been met. Councilmember Cotta expressed concerns about the potential impacts of additional cannabis retailers on public health, youth, and neighborhoods. He described observations from the area near a previous cannabis retailer on Road 90, stating that individuals congregated near the business and created safety concerns for students walking to nearby schools. He referenced a Washington State study that he said found an association between living near cannabis retailers and higher rates of cannabis use disorder, particularly among youth, and argues health mental increased to additional could retailers that contribute concerns and normalize cannabis use. Councilmember Cotta urged the Council not to expand the number of cannabis retailers, stating that doing so would help protect youth and the broader community from potential negative consequences. He concluded by sharing his religious perspective, citing a passage from the Bible and encouraging Council members to consider their faith when making their decision, expressing his belief that promoting cannabis is inconsistent with biblical teachings. Councilmember Perales stated that his proposal to increase the cannabis retailer cap was based on maintaining consistency with City policy rather than generating additional opposed cannabis originally allowing he Although had revenue. retailers in Pasco, he said his observations since their establishment have not shown significant negative community impacts. He cited police service data indicating relatively few calls for service associated with cannabis retailers, noting that many calls involved incidents affecting the businesses rather than criminal activity related to cannabis. Councilmember Perales compared cannabis and alcohol, its despite normalized socially become has alcohol that arguing documented health and public safety impacts. He referenced publicly available data on alcohol-related deaths and traffic fatalities, stating that comparable statistics for cannabis are not available. He emphasized personal responsibility, expressing that individuals should make their own choices while parents should educate their children about substance use. He stated that increasing the number of cannabis retailers would support job creation, economic activity, and business opportunities in Pasco. He also noted the potential for additional social equity cannabis and minority veterans by including businesses licenses, owned entrepreneurs, and highlighted the success of an existing local social equity retailer. He acknowledged that cannabis products provide medical benefits for some individuals, including those with PTSD, cancer, and other conditions. Concluding his remarks, Councilmember Perales expressed support for increasing the retailer cap to eight, which would allow four additional social equity licenses, citing economic development and employment opportunities as his primary reasons. Councilmember Figueroa stated that the discussion involved personal views for many people but emphasized that the Council's role is to establish and amend City policy. He expressed support for increasing the cannabis retailer cap by one additional retailer while also establishing a future population-based density cap to guide any additional expansion as the city grows. He noted that cannabis retail has been legal in Washington since 2012 and has been permitted in Pasco since 2023, stating that the current Council has an opportunity to refine the City's policy Page 7 of 17Page 12 of 160 for long-term growth. He said any additional retailer should be limited to a social equity drugs, on war of impacts the the discussed and license historical particularly on communities of color, stating that the social equity program is intended to address some of those inequities. Councilmember Figueroa also stated that Council members should not legislate based on personal religious beliefs He own his shared decisions. make objective instead but policy experiences growing up in a community affected by crime and drug activity and argued that cannabis retailers are highly regulated businesses. He expressed greater concern about youth access to nicotine vape products than licensed cannabis retailers. In closing, Councilmember Figueroa encouraged the Council to adopt a measured approach by increasing the retailer cap by one, establishing long-term growth guidelines tied to population, and limiting the additional retailer to a social equity license. He stated that he did not support increasing the cap to eight retailers and believed a gradual expansion represented a balanced and responsible policy approach. Mayor Pro Tem Milne stated that he served on the Council when the City first considered allowing cannabis retailers, describing the issue as highly divisive. He explained that he had voted to limit cannabis retailers to industrial areas, but the Council ultimately approved allowing them citywide. He stated that he opposed the proposal at that time and continues to oppose expanding the number of cannabis retailers. Mayor Pro Tem Milne expressed concerns about the public impacts of marijuana use, noting that he has encountered marijuana smoke in parks and other public places and finds it disruptive. He stated that these experiences contributed to his opposition to increasing the retailer cap. In closing, Mayor Pro Tem Milne said he respected the discussion and differing viewpoints expressed by Council members but indicated that he would vote against the proposal while acknowledging that the Council would ultimately decide the issue by majority vote. Councilmember Cotta thanked the Council for the respectful discussion and offered additional comments in opposition to increasing the number of cannabis retailers. He argued that cannabis differs from alcohol in its effects on the body and referenced studies that he said associate marijuana use with increased risks of psychosis, suicide, and adverse outcomes for youth. He cited statistics that he said showed higher rates of daily marijuana use among teens and linked youth cannabis use to lower academic performance, reduced educational attainment, and decreased graduation rates. He maintained that increasing the number of cannabis retailers could contribute to greater youth exposure and use. In closing, Councilmember should moral include policy stated that Cotta public considerations and that the Council has a responsibility to prioritize the health, safety, and well-being of the community when making policy decisions. Councilmember Hernandez stated that there are many differing statistics and personal opinions regarding cannabis but emphasized that the Council's decision should Councilmember with expressed He agreement on based be policy. Figueroa's proposal to increase the cannabis retailer cap by one, stating that increasing Councilmember the cap to eight retailers would be excessive. Hernandez shared that, based on his personal observations, he does not view Page 8 of 17Page 13 of 160 cannabis retailers as problematic. He stated that he has seen individuals using cannabis for medicinal purposes and observed customers with medical conditions purchasing cannabis products, rather than the type of activity described by opponents of the proposal. He also commented that personal beliefs and morality vary among individuals and suggested they should not be the primary basis for the Council's decision. He encouraged the Council to focus on sound public policy and business considerations, ultimately expressing his support for increasing the retailer cap by one additional license. Mayor Grimm stated that, while he is not inherently opposed to personal or medicinal marijuana use, he does not support increasing the number of cannabis retailers in Pasco. He acknowledged that existing retailers may not generate a high volume of police calls but expressed concern about secondary impacts, citing incidents such as a vehicle crashing into a cannabis retailer and the location of a retailer near a driver education business. Mayor Grimm also compared the discussion to broader community planning decisions, including the potential for additional casinos, and questioned whether increasing the number of cannabis retailers aligns with the type of community the Council wants to foster. He stated that the City already has a social equity cannabis license and expressed concern that increasing the retailer cap could lead to additional expansions in the future. In closing, future control cannot City the all that, stated Grimm Mayor while development, it can decide whether to increase the number of cannabis retailers. He said he opposed the proposal, believing the Council should avoid expanding uses that could contribute to additional community impacts. Councilmember Campos stated that the issue before the Council was not whether cannabis should be legal in Pasco, as that decision had already been made by a previous Council, but whether the City's retailer cap should be amended. He said his focus was on determining whether the City's population and community needs supported an additional retailer. Councilmember Campos acknowledged his own personal convictions about cannabis but emphasized that his responsibility was to represent the community and had not received significant opposition to adding one additional retailer. He concluded that, while he was not convinced the City needed a larger expansion, he supported option two, which would increase the cannabis retailer cap by one additional retailer, stating that he believed it reflected the feedback he had received from residents. Councilmember Figueroa encouraged the Council to consider the long-term policy implications of its decision rather than focusing solely on the current vote. He reiterated his support for increasing the cannabis retailer cap by one additional social equity license while establishing a population-based cap that would prevent further expansion until Pasco experiences significant population growth. He stated that this approach would provide long-term policy certainty, preserve local control, and ensure that future increases in the retailer cap would occur only after deliberate He public discussion and demonstrated community growth. emphasized that his proposal was not an endorsement of cannabis use but rather an effort to create a measured, balanced policy that addresses current needs while limiting future expansion. Councilmember Figueroa also discussed the purpose of Washington's social equity cannabis program, noting that the cannabis Page 9 of 17Page 14 of 160 industry has historically lacked diversity in business ownership. He stated that allowing one additional social equity retailer would create opportunities for to approach controlled a underrepresented while entrepreneurs maintaining expansion. In closing, Councilmember Figueroa stated that the Council should focus on decisions within its authority, adopt a policy that balances community concerns with economic opportunity, and establish clear guidelines that provide stability and predictability for future Councils and the community. Councilmember by increasing approach Perales a suggested compromise cannabis retailer cap by two additional social equity licenses rather than one. He also expressed support for incorporating a population based threshold into the ordinance that would allow a future Council to consider additional cannabis retailers after the City's population increases by approximately 20,000 to 25,000 residents. He stated that this approach could provide a balanced solution by allowing limited expansion while establishing a framework for future consideration based on population growth rather than authorizing a larger increase immediately. Mayor Grimm asked whether a future Council could amend or remove a proposed density cap before the population threshold was reached. City Attorney Drew Pollom confirmed that a future Council could amend or repeal the regulation through the same legislative process being used to consider the current amendment. He further explained that no Council can bind the legislative authority of a future Council, which would retain the ability to modify population thresholds, density limits, or other provisions as it deems appropriate. Councilmember Cotta asked how the state's social equity cannabis licensing program relates to diversity in cannabis retail licensing. City Attorney Drew Pollom explained that, while he could not speak in detail about the program, it is intended to include historically marginalized communities, which may be a significant factor in the issuance of social equity licenses. Councilmember Cotta commented on the relationship and local licensing, expressed support for equal opportunity and clarified that their concerns were specific to the proposed business rather than equal access to licensing opportunities. Mayor Grimm sought clarification on the state's cannabis retail licensing timeline. City Attorney, Drew Pollom confirmed that under the current state framework, no new general cannabis retail licenses are expected to be issued until 2032, with only social equity licenses being available during that period. He explained that this timeline is based on the state's existing cap on cannabis retail licenses and noted that the estimate could change in the future. He also stated that he was not familiar with the methodology used by the state to establish the license cap but could research it further if requested. City Manager, Herold Stewart summarized the Council's discussion and stated that staff understood there was majority support for adding at least one additional social equity cannabis retail license and for considering future licenses based on population growth. He requested clarification on whether the Council wished to authorize one or two additional licenses and what population threshold should be Page 10 of 17Page 15 of 160 used for future license increases so staff could prepare the appropriate ordinance for the next Council meeting. Councilmember Perales reiterated his support for capping the total number of cannabis retail licenses at six. Councilmember Figueroa expressed support for adding one additional license and tying any future license increases to population growth, while asking whether the Council could require a higher voting threshold to amend the policy in the future. City Attorney Pollom confirmed that the Council could the to amendments future and that higher a impose not standard development regulation would require only a simple majority vote, consistent with applicable law. Councilmember support a using would population that stated Figueroa he increase of 30,000 residents as the threshold for considering an additional cannabis retail license but was open to a higher threshold if preferred by the Council. Mayor Pro Tem Milne reiterated concerns that tying future licenses to population growth would have little practical effect because a future Council could amend the policy at any time. He reflected on previous Council actions regarding cannabis regulations and emphasized that future Council would ultimately have the Councilmember decisions. policy own Figueroa make to authority their responded that establishing the policy would nevertheless communicate the current Council's intent and vision for the community while expressing confidence that future elected officials would thoughtfully consider those discussions. Council discussion indicated support for authorizing one additional cannabis retail license Councilmembers licenses. six to increasing the than rather cap acknowledged that including a population threshold of 30,000 residents would primarily express the current Council's intent, , as a future Council could amend the policy. City Attorney Pollom recommended specifying in the ordinance that the additional license be available only to an applicant holding a Washington State cannabis social equity retail license under RCW 69.50.335. He also noted that the proposed regulatory framework already established the fifth license as a social equity license while maintaining the existing cap on general retail licenses. Legal Parameters for Enforcement of Anti-Camping and Quality of Life Ordinances Deputy City Manager, Richa Sigdel introduced a discussion regarding the legal parameters for enforcing the City's anti-camping and quality of life ordinances, noting that no formal Council action was requested. She explained that recent federal and state court decisions have changed the legal framework governing enforcement. She stated that the City's ordinances are generally compliant with current legal requirements but that staff is reviewing fines, fees, and vehicle impound procedures for consistency with Washington Law. She also noted that ongoing litigation and potential legislative changes could further affect the City's authority. Staff requested Council direction to review and recommend updates to applicable Page 11 of 17Page 16 of 160 ordinances and fee structures, update police protocols for interactions with homeless individuals, including vehicle impound procedures, and provide policy guidance on issues such as vehicle camping, camping in parks, and encampment cleanups to ensure enforcement aligns with Council's policy objectives and applicable law. Councilmember Cotta expressed support for staff reviewing the City's ordinances to ensure compliance with current law and bringing forward any necessary revisions. He also requested recommendations from the Police Department regarding enforcement practices based on operational experience. As a policy objective, Councilmember Cotta stated a desire to reduce homelessness in a manner that is sustainable for the City's budget, opposed vehicle camping, camping in public parks, public drug use, and unauthorized encampments, and supported developing vehicle impound protocols that discourage vehicle camping while minimizing costs to the City. Councilmember actions, proposed three the support expressed Perales for including reviewing City ordinances for compliance with current law, evaluating fines and impound fees, and updating police protocols for interactions with homeless individuals. He emphasized that enforcement measures should not be unnecessarily punitive toward individuals experiencing homelessness due to financial hardship, while recognizing the need to address unlawful activity when it occurs. Councilmember Perales also requested additional information on police protocols, including how individuals are connected with mental health, housing, and other support services. Councilmember Perales stated opposition to vehicle camping, camping in parks, public drug use, and unauthorized encampments, while expressing appreciation for ongoing efforts to address encampments within the community. Councilmember Campos expressed support for the staff presentation and City recommendations. He supported evaluating ordinances and requested additional information regarding enforcement of vehicle residency regulations, including qualifies vehicle a as a determine whether would officers how homestead, what training and protocols would be used, and whether enforcement would follow a graduated process beginning with outreach and warnings before citations with safety public balancing He impoundment. or emphasized compassion by connecting individuals to available services and advocated for a tiered enforcement approach that prioritizes outreach. He supported prohibiting overnight camping in public parks, particularly near playgrounds and sports fields, and drug referring while use illegal unsafe of enforcement strong favored individuals to diversion programs and community partnerships. He also recommended providing advance notice before encampment cleanups, suggesting a notice period such as 48 or 72 hours. Mayor Pro Tem Milne thanked staff for the presentation and expressed support for strengthening the City's response to homelessness-related issues. He stated that resources and programs are available to help individuals experiencing homelessness who are willing to participate, while noting concerns about Page 12 of 17Page 17 of 160 substance abuse and individuals who choose not to engage with available services. He shared concerns about the impacts of encampments and vehicle camping on local businesses, public safety, and the City's appearance, including his personal experience with business impacts. He emphasized the importance of balancing compassion with measures that support economic development and public confidence, and supported aligning City regulations to reduce public nuisances. Councilmember Cotta suggested that the task force established by the Police Chief evaluate whether additional cannabis dispensaries could have an impact on homelessness. He stated his belief that homelessness has increased in states that have legalized marijuana. Councilmember Figueroa expressed support for the first recommendation and suggested exploring alternative response models that pair law enforcement responding when professionals health to licensed officers mental with homelessness-related calls. He emphasized the importance of distinguishing between individuals experiencing temporary hardship and repeat offenders, while ensuring those in need receive appropriate services. He requested data on the effectiveness of alternative response programs used by other jurisdictions to help inform future policy and resource He also supported refining allocation. enforcement policies and encouraged exploring creative solutions for impounded vehicles, through could repurposed be vehicles whether including surplus programs that assist individuals with transportation needs. Mayor Grimm asked the Fire Chief to describe the City's existing resource navigator program in response to Councilmember Figueroa's comments about alternative response models. Fire Chief Crowley explained that the City currently operates a resource navigator program consisting of two behavioral health specialist and a resource navigator. He stated that the team receives referrals from emergency responders, law enforcement, and community partners to assist individuals who need services rather than jail or hospitalization. The team helps connect individuals with resources such as shelter, food, and other supportive services. Police Chief Cook stated that the City has been closely monitoring developments in case law related to homelessness and has worked to ensure its practices comply with legal requirements while protecting individuals' rights. He explained that the City has implemented procedures for returning impounded homestead vehicles to their owners when required by the courts and has developed a City- managed solution to address the costs associated with storing such vehicles. He added that staff are compiling information on the City's homelessness-related initiatives and practices into a comprehensive resource for Council review. Mayor Grimm stated that public spaces should remain safe and accessible for all residents while emphasizing that enforcement and compassion can coexist. He expressed support for treating individuals experiencing homelessness with dignity and respect while maintaining public safety and access to parks, sidewalks, and Page 13 of 17Page 18 of 160 other public spaces. He commended the Police Department's focus on connecting individuals with available resources through programs such as the resource navigator program and the Columbia River Recovery Center. He noted that many community organizations also provide support but emphasized the need for lawful enforcement when necessary. He acknowledged that some individuals experiencing homelessness are facing temporary hardships while others decline available assistance, and stated that both compassion and accountability are important. The Mayor also asked the City Attorney to explain how a pending Washington court decision related to Spokane litigation could affect the City's enforcement authority in light of the U.S. Supreme Court's decision in Grants Pass v. Johnson. City Attorney Pollom explained that the City must comply with both the U.S. Constitution and the Washington State Constitution. He noted that while the U.S. Supreme Court's decision in Grants Pass v. Johnson establishes the minimum constitutional Constitution Washington the may federal under standard law, federal with conflict not do they long so protections greater provide as constitutional requirements. He explained that states have authority under their police powers to adopt more protective constitutional standards and offered to provide analysis pending how of legal detailed more a with Council the Washington litigation could affect the City's enforcement authority. Councilmember County Franklin the with coordinating recommended Cotta Sheriff's Office when developing homelessness enforcement policies, noting that cooperation would be important for areas where City and County jurisdiction overlap. Mayor Grimm called for public comment Thomas Granbois, Big Maple Properties, shared his perspective as a downtown Pasco property owner, stating that homelessness is a complex issue requiring a balanced approach that combines supportive services with enforcement. He encouraged Council in actively more providers to service local participate discussions and describe the services they provide and the challenges they face. He noted that individuals experiencing homelessness have varying circumstances and needs, and emphasized that housing assistance programs often have eligibility limitations and inconsistent funding availability. He also observed that federal and state funding decisions can significantly affect the resources available to address homelessness at the local level. Mayor Grimm called for additional public comment three (3) times and no one else came forward to speak. Traffic Safety Unit Funding Program Police Chief Brent Cook provided an overview of a proposed traffic safety Page 14 of 17Page 19 of 160 program funded through automated traffic safety camera revenue. He explained that the program would support existing traffic enforcement efforts rather than create a separate full-time traffic unit. Due to the City’s continued growth, increased roadway demands, and patrol officers’ competing responsibilities, the program would provide additional opportunities for proactive, data-driven traffic safety enforcement. Chief Cook stated that funding would come from red light camera revenue after covering program costs, consistent with state law, City Ordinance No. 4392, and identified transportation safety priorities. The program would focus on targeted enforcement efforts, including speed enforcement, DUI patrols, high-visibility operations, crash reduction strategies, and school safety zones. Performance would be measured through reductions in crashes, injuries, impaired driving, speeding, and other high-risk behaviors. Chief Cook emphasized that the program would complement patrol operations by allowing officers to focus on emergency response and community policing while supporting sustained traffic safety efforts. He noted that the program would include financial oversight, regular reporting, and monitoring to ensure funds are used responsibly and within available resources. Chief Cook reported that the automated traffic safety camera fund currently has approximately $750,000 available. He explained that the fund does not currently support establishing a dedicated traffic unit, but the proposed program would allow the City to evaluate the effectiveness of additional traffic enforcement efforts and determine future needs. Staff recommended approval of using available camera revenue to implement the traffic safety program, with no general fund dollars requested. Councilmember Perales asked about the history and sustainability of the automated traffic safety camera revenue fund, including how long the approximately $750,000 balance had accumulated and the amount of annual revenue generated. Staff explained that the fund was established in 2021 and has accumulated Perales Councilmember time. that the balance current since requested information on the cost of staffing dedicated traffic enforcement officers and whether recurring revenue could support at least one or more positions. He stated that if the revenue source could sustain traffic enforcement staffing, the City should explore that option rather than relying on the General Fund. He also suggested evaluating additional automated traffic cameras, including potential school zone locations under new legislation, as a way to improve safety and potentially generate additional funding. Councilmember Perales acknowledged that could future reduce behaviors increased safer and compliance driving revenue but emphasized the importance of understanding available resources and identifying sustainable funding options as the City continues to grow. Staff reported that from 2021 through 2025, the program generated approximately $166,000 annually in surplus revenue after expenditures, though that surplus trend has been declining in recent years. Mayor Grimm thanked Chief Cook for bringing forward the traffic safety program proposal and expressed support for the initiative. He stated that improving traffic safety has been a priority of his since joining Council, particularly as young drivers in the community begin driving. He shared concerns about dangerous driving behaviors, a including vehicles running red lights, and supported creating dedicated traffic enforcement function focused on proactive efforts such as Page 15 of 17Page 20 of 160 distracted driving enforcement and other traffic-related violations. The Mayor noted that while a larger traffic unit consisting of a sergeant and multiple officers would be desirable, the current financial resources do not support that level of investment. He expressed support for beginning with a smaller program funded through available revenue and viewed the proposal as a positive step toward improving traffic safety. He also emphasized that increased police visibility and traffic enforcement can have broader public safety benefits by serving as a deterrent to other crimes. The Mayor shared concerns about unsafe driving behaviors he has observed in the community, including minibikes operating in traffic lanes and creating potential hazards, and thanked Chief Cook for pursuing creative solutions to address traffic safety needs. Councilmember Figueroa asked about the risk consideration regarding the program's definition and what steps were being taken to establish measurable outcomes for the proposed traffic safety program. He referenced the importance of tracking results similar to existing DUI and traffic enforcement reporting. Chief Cook explained that the program would include documentation and tracking of enforcement activities performed by assigned personnel. He stated that the City's crime analyst would review available data over time to evaluate trends and determine whether the program is resulting in measurable improvements, such as changes in traffic related violations, crashes, and other safety indicators. Mayor Grimm called for public comment three (3) times and no one came forward. Ordinance - Extending Moratorium on Essential Public Facilities (Secure Community Transition Facilities) Community & Economic Development Deputy Director, Craig Raymond provided an update regarding the City’s ongoing work to develop regulations related to essential He uses. similar facilities, and secure facilities, public transitional explained that a temporary moratorium was established in February to allow time for ordinance development and public outreach. Deputy Director Raymond stated that additional time is needed to incorporate Council direction and ensure the appropriate regulatory process is followed. He noted that the initial six-month moratorium expires on August 17 and recommended extending the moratorium for an additional six months. He advised that a public hearing is required before the extension can be considered and is scheduled for August 3 to review the moratorium renewal ordinance. Mayor Grimm called for public comment three (3 times) and no one came forward. MISCELLANEOUS COUNCIL DISCUSSION City Manager, Harold Stewart reminded Council and the public that the City's National Night Out events will take place on Tuesday, August 4th. He announced two events, one at 2:30pm at Tierra Vida and another at 5:00pm at Gesa Stadium in partnership with He celebrate attend, to residents Devils. local Dust the encouraged law enforcement officers, and learn about community resources available to assist residents. Page 16 of 17Page 21 of 160 Councilmember Figueroa thanked Council for the evening's discussion and recognized the difficulty of the decisions before them. He shared feedback from residents who appreciate Council's willingness to address challenging issues and commended Councilmembers and staff for their work. Mayor Grimm requested that Council be mindful of staff workload and allow the executive branch flexibility in prioritizing assignments, particularly while staff are managing major other and plan update, process, budget the comprehensive initiatives. He emphasized that Council can establish policy priorities but should allow staff to manage day to day operations and workload priorities. Councilmembers discussed limiting additional requests through the end of the year to allow staff to focus on existing priorities. Councilmember Perales identified animal shelter operations, homelessness, speeding/traffic safety, and Flock cameras as key issues he has been hearing from constituents but agreed to defer additional requests. Councilmember Campos supported the approach, noting that balancing the budget is a major Council priority and staff should have the necessary time and capacity to accomplish goal. that Councilmember Figueroa also supported the idea and suggested using a priority system (such as P1, P2, and P3) when submitting future requests to help staff distinguish urgent matters from items that can be addressed over time. City Attorney Pollom advised that Council’s role is to establish policy direction and priorities, while the City Manager and staff are responsible for implementing those policies and managing daily operations. He emphasized that Council should avoid directing specific administrative tasks or departmental workflows and instead focus on broader goals, including budget priorities. The Mayor reiterated the importance of balancing Council priorities with staff capacity and suggested revisiting the approach after the budget cycle and other major projects are completed. ADJOURNMENT There being no further business, the meeting was adjourned at 9:54 PM. PASSED and APPROVED on _______________________. ADDITIONAL NOTES Adopted Council Goals (Reference Only) APPROVED: ATTEST: Page 17 of 17Page 22 of 160 MINUTES City Council Regular Meeting 7:00 PM - Monday, August 3, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar MEETING INSTRUCTIONS FOR REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so (City’s the via website online the out filling by form 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 1338478# City Council meetings are broadcast live on PSC-TV Channel 191 on streamed at and and Pasco in Charter/Spectrum Cable Richland 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 antes para dos la disponiblidad. (Spanish language dias garantizar interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) 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, David Milne, Charles Grimm Councilmembers attending remotely: Leo Perales Councilmembers absent: Staff present: Richa Sigdel, Deputy City Manager; Angela Pashon, Interim Parks Page 1 of 12Page 23 of 160 & Recreation Director; Kevin Crowley, Fire Chief; Kevin Hebdon, Finance Director; Daniel Kenny, City Attorney; Craig Raymond, Deputy Community & Economic Development Director; Sara Matzen, Human Resources Director; Maria Serra, Public Works Director; and Gabriela Sanchez, City Clerk The meeting was opened with the Pledge of Allegiance. Pledge of Allegiance CONSENT AGENDA Approval of Meeting Minutes for July 13th and July 20th Bills the Total Amount of in Claims Approving - Communications and $4,848,019.56 Resolution No. 4770 Project Acceptance for Schlagel Park Stormwater Main replacement (RC) MOTION: I move to approve the Consent Agenda as read. PROCLAMATIONS AND ACKNOWLEDGEMENTS PUBLIC COMMENTS Lwanda Hatch urged the Council to oppose additional cannabis retail stores, stating that the primary responsibility of government is to protect children and youth. She expressed concerns that higher-potency cannabis products, increased social acceptance, flavored vaping products, and edible products contribute to youth access and use. Ms. Hatch cited research and studies that she said link youth cannabis use to mental health concerns, risky behaviors, impaired driving, and other negative outcomes. She argued that expanding cannabis retail locations would increase youth exposure and that the social and public health costs would outweigh any economic benefits. She concluded by asking the Council to vote against allowing additional marijuana retail stores. Brad Klippert, addressed the Council, citing more than 33 years of law enforcement experience, including 26 years as a school resource officer. He spoke in opposition to allowing additional marijuana retail stores in Pasco, sharing observations from his career regarding the impacts of marijuana and substance abuse on individuals, families, and communities. He referenced experiences with drug court participants and individuals he encountered in law enforcement who attributed marijuana as a contributing factor to addiction and personal hardship. Mr. Klippert also referenced a publication titled Why Haven't Marijuana Smokers Been Told These Facts, stating it contains numerous cited studies regarding the potential health and societal impacts of Page 2 of 12Page 24 of 160 marijuana use. He urged the Council not only to reject the addition of marijuana retail stores but to consider eliminating existing marijuana shops in Pasco, stating he believes doing so would better protect the community. He concluded by thanking the Council for its time. Russell Wood, Benton County, Director of U-Turn for Christ at Calvary Chapel Tri- Cities, addressed the Council regarding the proposal to expand marijuana retail outlets. Mr. Wood read a statement on behalf of Ryan Fowler, a participant in the ministry and a pharmacist with experience in ambulatory care and outcomes research. The statement acknowledged the competing perspectives presented during the public hearing, including economic development, social equity, and public safety, while urging the Council to carefully weigh the long-term impacts of increasing access to marijuana. The statement drew comparisons to the opioid epidemic, emphasizing that practices once considered legally and socially acceptable later resulted in unintended prioritize to Council the health It consequences. public encouraged community safety when making its decision. Speaking from his own experience working in a residential substance abuse recovery program, Mr. Wood described serving men with longstanding addiction issues and shared that he has witnessed many lives transformed through faith-based recovery. Based on his experience working with individuals in recovery and in correctional settings, he expressed his belief that adding another marijuana retail store would not benefit the community and voiced concerns about its potential impact on families and youth. He thanked the Council for its consideration. Les Johnson, Franklin County resident addressed the Council regarding the proposal to allow an additional marijuana retail location. Mr. Johnson stated that although he is a customer of an existing cannabis retailer and does not oppose retail cannabis generally, he supports maintaining the current limit of four retail stores established by the Council in 2023. Mr. Johnson argued that the four-store cap was a key component of the original Council decision and reflected the divided views of the community as indicated the would proposal current that by He survey. City's the contended effectively create a fifth retail location because the previous tenant relocated within Pasco rather than ceasing operations. He also questioned the economic justification for the proposal, citing the applicant's projections, the location's visibility, and the City's reported cannabis tax revenue. Mr. Johnson urged the Council to preserve the existing four-store limit and allow any proposed amendment to proceed through the public hearing process before making a decision. He concluded by asking the Council to vote against the proposal. Kamara Brooks, Burbank resident, owner of Tri-Cities 911 Driving School in Pasco, addressed the Council in opposition to the proposed additional marijuana retail location. She stated that while the legality of marijuana has already been decided, the issue Ms. necessary. is retailer another Council is the before Brooks whether encouraged the Council to consider public safety and community impacts rather than potential tax revenue, noting that Pasco already has licensed marijuana retailers serving the community. Drawing on her experience as a driving school owner, she discussed the importance of preventing impaired driving and cited statistics from the Washington Traffic Safety Commission regarding impaired-driving fatalities and the presence of THC in impaired drivers. She also noted a significant increase in Page 3 of 12Page 25 of 160 enrollment in court-ordered Level II defensive driving courses related to impaired driving, which she said reflects a growing need for education and prevention. Ms. Brooks expressed concern that additional marijuana retailers would increase the visibility and normalization of marijuana use, particularly for youth, and urged the Council to consider the long-term character of the community. She concluded by asking the Council not to approve another marijuana dispensary in Pasco. Kelly Parks, Pasco resident and a public elementary school teacher, addressed the Council in opposition to the proposed marijuana retail location. She expressed concern about the potential impact on students, particularly because of the site's proximity to Reynolds Middle School. Ms. Parks shared that, based on conversations with school staff, students have already been leaving campus or arriving late after walking to nearby businesses, and she expressed concern that a marijuana retailer could become an additional distraction. She also relayed concerns expressed by another Pasco School District teacher and parent whose child will be attending Reynolds Middle School. While expressing support for continued business growth in Pasco, Ms. Parks stated that she believes the proposed location is not appropriate due to its proximity to the school and urged the Council to consider the potential effects on students and the surrounding community. Mindy Gardner, Pasco resident, mother, and Pasco School District elementary school teacher since 2006, addressed the Council in opposition to the proposed additional marijuana retail store. She stated that her concerns were focused on what is best for Pasco and the type of community the City wants to build for children and families, rather than on judging individuals or debating state marijuana laws. Ms. Gardner emphasized the importance of safe neighborhoods, positive influences, and prioritizing the well-being of children. She encouraged the City to attract businesses that support economic growth while also promoting health, opportunity, and a family- friendly environment. She expressed her desire for Pasco to remain a community where families can establish roots and children can thrive. She respectfully asked the Council to deny the application for the additional marijuana store. Zachary to proposal LLC's Compass regarding Council the addressed Fairley, become a social equity cannabis operator in Pasco. He thanked the Council for its discussion during the previous week's workshop and stated that he and his partners had listened to Council and community concerns, particularly regarding the potential impact of the business on the surrounding neighborhood. Mr. Fairley reported that the applicants had conducted door-to-door outreach in the area, introducing themselves to residents and seeking their feedback. He stated that the response was overwhelmingly positive, with residents expressing support and offering suggestions for how the business could be a better neighbor. He emphasized the applicants' commitment to enhanced security, open communication, community engagement, and minimizing impacts on neighborhood quality of life. Mr. Fairley also referenced conversations with longtime residents Terry and Cecil, who live across the street from the proposed location. He stated that they reported no significant issues with the previous cannabis retailer or its customers and that one resident had valued the convenience of having access to cannabis products within walking distance. He also noted that the residents identified noise from a nearby gym as a greater neighborhood disruption. Mr. Fairley concluded by stating that, if approved, Compass LLC would Page 4 of 12Page 26 of 160 seek to build a relationship with the neighborhood based on communication, accountability, and being a good neighbor. Caleb Stromstad, Pasco resident, addressed the Council in opposition to providing the State with an affirmative consent letter for an additional cannabis retailer. He expressed concern that the request appeared inconsistent with the City's existing code, which establishes a cap on the number of cannabis retailers, and stated that approval would therefore be premature unless the ordinance were first amended through the appropriate process. Mr. Stromstad stated that he would also oppose increasing the existing cap. He encouraged Council Members to rely on their own informed judgment, convictions, and consideration of the evidence when making the decision, rather than feeling compelled to follow public opinion. He emphasized the Council's responsibility to consider the long-term health of the community and noted that elected officials should have both the courage to stand by their decisions and the humility to reconsider them if circumstances change. He referenced the City's 2023 community survey regarding cannabis retailers, characterizing the results as nearly evenly divided, and stated that any change to the City's code should include a proper public also Stromstad input. community Mr. opportunity and process for acknowledged that the applicant had assumed significant financial risk by entering into a five-year lease but stated that the applicant's business decision should not require the City to act hastily or outside its established process. He concluded by thanking the Council for its service and encouraging members to follow the City's established procedures and their convictions. Angela Fraga, Pasco resident and a local business owner, addressed the Council in support of Compass Group's proposal to open a cannabis retail store in Pasco. She stated that the ownership group includes her family and identified her husband, Steve Gerrio, as a Pasco native with approximately 10 years of professional experience in the cannabis industry in Washington, California, and Florida. Ms. Fraga stated that the proposed business would provide an opportunity for Mr. Gerrio to return to his hometown, create jobs, and contribute to the local community and economy. She also noted that some of her professional clients use cannabis for medicinal purposes and expressed support for safe, responsible, and professional access. Ms. Fraga stated that Compass would be the first Latino-, Black-, and veteran-owned cannabis retail business the and experience in group's expressed and Pasco in confidence commitment to operating responsibly. She concluded by asking the Council to support the proposal. Samuel Alaniz, Pasco resident, addressed the Council in support of the Compass Group's proposed cannabis retail store. He thanked the Council for its consideration and stated that, following concerns raised at the previous meeting, the ownership group the surrounding neighborhood the outreach door-to-door conducted in proposed location. Mr. Alaniz reported that the group contacted approximately 60 homes and spoke with residents from about 80% of the households. He stated that many residents expressed support or indicated they had no objection to the proposed business. He noted that the limited concerns raised were not related to crime or safety, but included a resident's concern about litter being blown into yards during windstorms. He stated that the business would incorporate parking lot cleanup into its daily opening and closing of procedures. Mr. Alaniz also emphasized the use Page 5 of 12Page 27 of 160 cannabis for medical purposes, noting that patients with conditions such as chronic pain, epilepsy, PTSD, and cancer may rely on medical cannabis to improve their quality of life. He identified himself as a lifelong member of the Pasco community, homeowner, and local businessperson, and stated that he would be accountable for the business as general manager and available to address concerns from neighboring residents. Mr. Alaniz concluded by asking the Council to support the application. Taylor Toranto, Pasco resident, addressed the Council in support of allowing Compass Group to operate a cannabis retail business in Pasco. Mr. Toranto stated that and businesses, from particularly local increased supports he competition, believes additional competition would benefit the local economy. Mr. Toranto also expressed support for cannabis and cannabinoid products for medical purposes and research. He encouraged Washington State and Pasco to explore opportunities for research and development involving cannabinoid products, including those associated with Delta-8, while noting the importance of required testing and accurate information regarding cannabis as a potential medical product. Mr. Toranto stated that although he did not have personal knowledge of the Compass Group ownership, he believed the applicants should be given the opportunity to become licensed and operate in Pasco. Mary Mahoney addressed that her comments were an amendment to prior comments and documents including 2026, 2, April submitted requests records public on previously provided to a Council Member. Ms. Mahoney raised concerns regarding the estimated number of homeless cats in the Tri-Cities and requested information from animal control regarding its efforts to address the issue. She requested statistics for 2026, including the number of cats spayed or neutered, euthanized, adopted, and involved also information requested She programs. trap-neuter-return any in any and research for State University to sent animals regarding Washington associated payments, as well as the number of low-cost spay/neuter procedures performed for cats and dogs. She further requested information regarding efforts by City officials to research or develop a low-cost spay/neuter clinic, including dates, locations, participants, and costs. Ms. Mahoney asked for a comparison of taxpayer expenditures for the Pasco Aquatic Center and a potential low-cost spay/neuter clinic, including projected costs for Aquatic Center Phase II and Phase III and payments to individuals and entities associated with the project. Ms. Mahoney also referenced expenditures phase questions raised and first Aquatic the to related Center's regarding payments and expenses involving former City officials and consultants. She concluded by stating that her requests and supporting materials were submitted pursuant to RCW 42.56 and were intended to place the City on notice of her public records requests. Antonio Espinoza, Pasco, addressed the Council in support of expanding the City's cannabis retail cap to allow Compass LLC to open a retail location. Mr. Espinoza stated that he has lived in Pasco for approximately 14 years and has longstanding family ties to the community. Mr. Espinoza expressed his support for the proposed ownership group, describing them as members of the community who are committed to providing legal cannabis services while contributing to and supporting other City and community programs. He stated that he believes the business would be an opportunity and to strengthen the applicants' involvement in the community Page 6 of 12Page 28 of 160 demonstrate their commitment to Pasco. Acknowledging that there were community members with concerns or opposition to the proposal, Mr. Espinoza asked the Council to consider the applicants' community ties and intentions. He concluded by expressing his personal support for the proposed business and its ownership group. Dorothy Frenzel, Franklin County resident, addressed the Council in opposition to opening an additional cannabis retail store in Pasco. She referenced a recent federal public affairs announcement concerning a criminal case involving the alleged use of cannabis-infused gummy products to drug unaccompanied children during human smuggling and availability the about Frenzel expressed Ms. activities. concern appearance of cannabis-infused products such as gummies, particularly their potential appeal to children and the possibility of misuse or sharing among students. She stated that these concerns contributed to her opposition to additional cannabis dispensaries in the community and urged the Council to vote against the proposal. Mayor Grimm called for public comment two (2) times and no on else came forward to speak. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers HEARINGS ORDINANCES AND COUNCIL ACTION ON AND RESOLUTIONS RELATING THERETO Public Hearing and Ordinance No. 4851 - Renewing Moratorium on Essential Public Facilities (Secure Community Transition Facilities) CED Deputy Director Craig Raymond provided an update on the City's work regarding an ordinance regulating essential public facilities, including secure transitional facilities. He stated that the City Council had established a six-month temporary moratorium in February while developing potential regulations, including criteria, overlays, maps, and other zoning provisions. Mr. Raymond requested that the Council conduct a public hearing regarding Ordinance No. 4851 to extend the moratorium for an additional six months to allow staff to complete for Council the to them and regulations proposed the return consideration. Councilmember Cotta expressed support for the extension, noting that the security Council had identified potential measures involving increased requirements and larger buffer zones to limit where such facilities could be located and increase separation from children and other vulnerable populations. Mayor Grimm explained that the City's efforts relate to the State's placement of sexually violent predators in communities and stated that state law limits the City's ability to prohibit such facilities entirely. He emphasized that the Council was taking the issue seriously and was seeking to develop regulations that would Page 7 of 12Page 29 of 160 provide protections for the community while complying with state law. Public Hearing opened Taylor Toranto, Pasco resident, addressed the Council regarding the proposed six-month extension of the moratorium on secure transitional facilities. Mr. Toranto expressed support for the extension but urged the City not to view the moratorium as simply delaying the issue. He stated that he believed the City had options state despite concerns safety to address available community requirements and encouraged the Council to proactively pursue all available measures. Mr. Toranto emphasized that the issue involved public safety and expressed concern about the potential impact of locating multiple high-risk sex offenders within the community. He encouraged the City to utilize its legal resources and take whatever additional steps may be necessary to protect residents. Mr. Toranto concluded by urging the Council not to give up in seeking solutions. Caleb Stromstad, Pasco resident briefly addressed the Council regarding the secure transitional facilities discussion. He stated that this was his first time hearing about the matter and thanked the Council for its work and consideration. Mayor Grimm called for additional public comment and no one else came forward to speak. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Campos Motion: "I move to adopt Ordinance 4851, an Ordinance of the City of Pasco, Washington, renewing the moratorium adopted in Ordinance 4817 from August 17, 2026, to February 31, 2027; providing for interpretative authority; providing for corrections; providing for severability; and establishing an effective date." RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Resolution No. 4771 - Setting a Public Hearing to Consider Lightspeed Networks Inc. Franchise Extension (5 minutes) Deputy City Manager, Richa Sigdel presented a resolution on behalf of Public Works Director Serra regarding the renewal of a fiber optic franchise with Lightspeed Networks. She explained that pursuant to the Pasco Municipal Code, the City Council must hold a public hearing before considering the award or renewal of a franchise agreement. The resolution would set a public hearing for 7:00pm on August 17, 2026. Ms. Sigdel clarified that the action before the Council Page 8 of 12Page 30 of 160 only establishes the hearing date and does not approve or renew the franchise agreement. The earliest Council action on the franchise renewal would be September 8, 2026. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Campos MOTION: I move to approve Resolution No. 4771, setting 7:00 PM, August 17, 2026, as the time and date for a public hearing to consider a Fiber Optic Franchise with Lightspeed Networks, Inc. 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. 4772 - Setting Time and Date for a Public Hearing for a Right-of- Way Vacation-Portion of Road 108 ROW Vacation (VAC2026-002) (5 minute staff presentation) potential the regarding item an presented Raymond Director Deputy CED vacation of excess City right-of-way associated with the realignment of Road 108. He explained that as the City has expanded northward and transportation needs have evolved, Road 108 needed to shift west to accommodate future growth and existing development. The realignment resulted in portions of right-of-way that are no longer needed for public transportation purposes. Mr. Raymond explained that the right-of-way vacation process begins with a petition and requires a public hearing. The Council would consider factors including traffic circulation, potential future public use, property access, and the overall public interest. The process would also determine whether a professional appraisal is necessary and whether compensation would be required. He reviewed maps showing the proposed new alignment of Road 108 and the excess right-of-way requested for vacation, which would be incorporated into adjoining subdivision parcels. Staff requested that the Council approve Resolution No. 4772 to set a public hearing regarding the proposed right-of-way vacation. MOTION: Mayor Pro Tem Milne moved, seconded by Councilmember Cotta MOTION: I move to approve Resolution No. 4772, setting 7:00 p.m. on Tuesday, September 8, 2026, as the date and time for a public hearing to consider the vacation of a portion of the Road 108 right-of-way dedicated by AFN 1918957 and AFN 1956207. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos Page 9 of 12Page 31 of 160 Resolutions No. 4773 - Segregation of Local Improvement District No. 152 Assessment (5 minute staff presentation) Finance Director, Kevin Hebdon presented a resolution concerning the segregation of a Local Improvement District (LID) assessment in the northern part of provide to established was LID sewer that explained He City. the the infrastructure to support future development as properties are subdivided and developed. The County notified the City that a property previously assessed for its share of the LID had since been subdivided. The property, identified as J14 LLC, was divided into eight separate parcels, requiring the original LID assessment to be apportioned among the new parcels. Mr. Hebdon stated that the proposed resolution is a routine administrative action to formally segregate and assign the existing assessment to the eight resulting parcels. MOTION: Councilmember by moved, Milne seconded Pro Mayor Tem Hernandez MOTION: I move to approve Resolution No. 4773, relating to Local Improvement District No. 152; providing for the segregation of assessments for certain parcels, referred to as J-14 LLC, consistent with RCW 35.44.410. RESULT: Motion carried 7-0 AYES: Mayor Grimm, Mayor Pro Tem Milne, Councilmember Figueroa, Councilmember Perales, Councilmember Cotta, Councilmember Hernandez, and Councilmember Campos UNFINISHED BUSINESS Cannabis – Affirmative Consent to Compas LLC Social Equity Retail License and Letter of Support City Attorney Kenny presented a continued discussion regarding cannabis Manager an submit to City and authorizing licensing the recommended affirmative-consent response to the Washington State Liquor and Cannabis Board regarding Compass LLC and its proposed location. He explained that the state’s notice requires the City to answer only whether it approves the applicant and whether it approves the location. If Council provides affirmative consent, staff would prepare proposed amendments to Pasco Municipal Code. The the proposed changes would increase the number of cannabis retail licenses from four one each for license 30,000-person increases future with five, to of population increase. Council discussed whether the proposed code change would apply specifically to Compass LLC or generally to any qualifying applicant. Staff clarified that the code would be applicant-neutral and would not reserve a license for Compass LLC. Any applicant meeting the applicable requirements could potentially obtain the additional other license. Councilmembers also discussed the possibility of applicants, including social-equity applicants, seeking a license and whether the Page 10 of 12Page 32 of 160 first qualified applicant to complete the required process would receive the available license. MOTION: Councilmember Figueroa moved, seconded by Councilmember Hernandez MOTION: I move to authorize the City Manager to execute and submit the Washington State Liquor and Cannabis Board Local Authority Notice indicating the City's affirmative consent for Compas LLC (WSLCB Application No. 445257). RESULT: Motion carried 4-3 AYES: Councilmember Figueroa, Councilmember Perales, Councilmember Hernandez, and Councilmember Campos NAYS: Mayor Grimm, Mayor Pro Tem Milne, and Councilmember Cotta NEW BUSINESS Mind the Gap: Navigating Language Barriers in Traffic stops. Dr. Hillary Mellinger, Assistant Professor at Washington State University, presented research conducted in partnership with the Pasco Police Department examining language barriers during traffic stops. The study included analysis of body-worn camera footage, officer interviews, and community focus groups to identify effective communication strategies and opportunities to improve language access. Key findings included approximately half of the analyzed traffic stops involved some level of language barrier, officers most frequently relied on basic "survival Spanish," assistance from bilingual officers, adult passengers, Google Translate, as officers gestures, such other communication and techniques consistently provided drivers with the reason for the traffic stop, regardless of language barriers, emphasizing the importance of procedural fairness, and complex for resource preferred the bilingual identified were officers as interactions, while tools such as Language Line were viewed as less practical during roadside stops due to traffic noise and safety considerations. The presentation also highlighted best practices identified through the research, including using simple language, speaking calmly, exercising patience, confirming understanding, avoiding assumptions, and selecting appropriate interpretation resources based on the complexity of the interaction. Officers emphasized the importance of explaining the reason for the stop, checking for comprehension, and avoiding reliance on children or other potentially biased interpreters. Recommendations included continuing to recruit bilingual officers, expanding language-access resources and technology, encouraging language proficiency among officers, and strengthening community outreach and education regarding traffic stop procedures. The researcher noted that the full report and executive Page 11 of 12Page 33 of 160 summary would be published by the Washington Traffic Safety Commission. MISCELLANEOUS DISCUSSION City Manager Report Deputy City Manager Sigdel announced that National Night Out would be held the following day at two locations: 2:30pm at Tierra Vida and 5:00pm at Gesa Stadium in partnership with the Tri-City Dust Devils. The community was invited to attend, meet Pasco Police officers, view patrol vehicles and police equipment, participate in games and family-friendly activities, and receive information and promotional items from the Police Department. Residents were encouraged to attend either event and engage with local law enforcement. EXECUTIVE SESSION ADJOURNMENT There being no further business, the meeting was adjourned at 9:05 PM. PASSED and APPROVED on _______________________. ADDITIONAL NOTES Adopted Council Goals (Reference Only) APPROVED: ATTEST: David Milne, Mayor Kystle Shanks, City Clerk Page 12 of 12Page 34 of 160 MINUTES City Council Workshop Meeting 7:00 PM - Monday, August 10, 2026 Pasco City Hall, Council Chambers & Microsoft Teams Webinar MEETING INSTRUCTIONS FOR REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so (website the via City’s online the out filling by form www.pasco- wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this workshop. The Pasco City Council Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum atstreamed and Richland Cable Pasco in and www.pasco- wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. To listen to the meeting via phone, call 1-332-249-0718 and use access code 808972664# 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 dias antes para la disponiblidad. (Spanish language dos garantizar interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) 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, David Milne, Charles Grimm Councilmembers attending remotely: Councilmembers absent: Staff present: Harold Stewart, City Manager; Angela Pashon, Interim Parks & Page 1 of 5Page 35 of 160 Recreation Director; Kevin Crowley, Fire Chief; Kevin Hebdon, Finance Director; Drew Pollom, City Attorney; Haylie Matson, Community & Economic Development Director; Sara Matzen, Human Resources Director; Brent Cook, Police Chief; Maria Serra, Public Works Director; and Gabriela Sanchez, City Clerk The meeting was opened with the Pledge of Allegiance. a) Pledge of Allegiance b) Recognition of Pasco Little League Mayor Grimm recognized the Pasco National Little League Intermediate All-Star Team for winning the 2026 Washington State Intermediate Little League Baseball Championship VERBAL REPORTS FROM COUNCILMEMBERS Mayor Grimm reported attending the Washington Economic Development Association (WEDA) Conference in the Tri-Cities, where local mayors discussed economic were presentations their Although not regional and development collaboration. coordinated, each emphasized the importance of supporting not only their individual communities but also the Tri-Cities region as a whole. Mayor Grimm noted a shared understanding that attracting new investment to any of the regional municipalities benefits the entire area, reinforcing a spirit of cooperation and collective success among the local jurisdictions. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC COMMENT Update for Park Bathroom Security Enhancement Options Interim Parks and Recreation Director, Angela Pashon presented a follow-up to the April discussion regarding strategies to improve park restroom usability and reduce vandalism. Staff reported that the City has recorded nearly 100 vandalism related work orders in parks since the beginning of the year, with two park restrooms currently closed due to clogged pumps caused by misuse. The City operates 28 parks, including nine seasonal permanent restrooms, with the highest incidents occurring at Volunteer, Sylvester Memorial, and Schlagel Parks. Since the Information and Police, Recreation, Parks presentation, previous and Technology staff evaluated several security options, including contracted and in- house camera systems. Staff determined that recent upgrades to the City's technology and Police Department systems make it possible to implement an internal provided mobile surveillance program rather than leasing vendor equipment. The proposed program includes installing stationary cameras at identified locations and purchasing at least one mobile, solar powered camera Page 2 of 5Page 36 of 160 unit that integrates with existing City systems. Staff requested Council direction on whether to proceed with implementing a park camera security program and whether to include private security closure checks as part of the effort. If directed to move forward, staff will return with a proposed budget amendment of approximately $100,000 to fund the program. Council discussed staff's recommendation to improve security and reduce vandalism at park restrooms through a phased camera surveillance program. Councilmembers expressed support for the proposal, noting that restroom access and public through identified concerns community ongoing are safety park feedback. Members supported implementing the program as a pilot that could be expanded based on its effectiveness. Staff and the Police Chief described successful implementation of similar mobile camera units in Spokane County, where the technology has reportedly reduced criminal activity. The proposed cameras would integrate with the City's existing camera management software, allowing staff to monitor activity and relocate mobile units to areas experiencing recurring issues. Staff clarified that four park restrooms with the greatest concerns are be unit mobile the would cameras, stationary for recommended while deployed as needed throughout the park system. Council discussed implementation timing, with some members questioning whether the program could be operational before the current park season ends and suggesting it may be more practical to focus on next year's season. Staff acknowledged that procurement, testing, and coordination would take time but emphasized that beginning the process now would allow the system to be in place for the next park season while still providing benefits during the winter months when vandalism continues. Staff also confirmed the selected cameras would integrate with the City's camera technology platform. Mayor Grimm called for public comment three (3) times and no one came forward to speak. Ordinance - Amending PMC 10.70.080 Parking Prohibited Engineering Manager, Andrey Avetisyan presented on a proposed ordinance to designate a portion of 27th Avenue between Sylvester Street and West Irving Street as a no-parking zone to address safety and visibility concerns. Staff explained the recommendation was based on a traffic engineering evaluation following a complaint from a nearby business. Council discussed enforcement, the evaluation process, and potential parking impacts on nearby businesses. Staff noted enforcement would be handled by Code Enforcement, affected property owners had been notified, and alternative parking is available on West Irving Street and within nearby business parking lots. Council concluded discussion without further comment. Mayor Grimm called for public comment and no one came forward to speak. Page 3 of 5Page 37 of 160 Resolution - Updated Tri-Cities HOME Consortium Citizen Participation Plan CDBG Administrator, Kristin Webb presented on updates to the Tri-Cities HOME Consortium Citizen Participation Plan, which is required by the U.S. Department of Housing and Urban Development (HUD) for participation in the HOME and Community Development Block Grant (CDBG) programs. Staff explained the proposed revisions are primarily administrative, including updates to public notification procedures, removal of outdated COVID-19 provisions, clarification of amendment procedures, and the addition of conflict-of-interest language. Staff recommended approval to maintain compliance with HUD requirements and preserve the City's eligibility for federal housing and community development funding. Councilmember Campos asked how outcomes are measured in the Consolidated Annual that explained (CAPER). Staff Evaluation and Performance Report performance measures vary by program and include metrics such as the number of people served, homes rehabilitated, and the income levels of beneficiaries. Staff also noted that goals are measured over the five-year Consolidated Plan period and have historically been met by the end of each planning cycle. Mayor Grimm called for public comment three (3) times and no one came forward to speak. Resolution – Adopting the City of Pasco Affordable Housing Policies and Procedures Manual for HB 1406 Funds CDBG Administrator, Kristin Webb presented the proposed Affordable Housing Policies and Procedures Manual for administration of House Bill (HB) 1406 funds and requested Council approval. She explained that HB 1406, adopted by the Washington State Legislature in 2019, allows participating cities to retain a portion of existing state sales tax revenues to support affordable housing. The City of Pasco joined the program in 2020 through Resolution No. 3937. Funds are restricted to serving households earning 60% or less of the area median income and may be used for affordable housing acquisition, rehabilitation, construction, rental assistance, supportive housing, and housing stability activities. Ms. Webb noted that while the City has participated in the program for five years, a formal policies and procedures manual had not previously been adopted. The proposed manual establishes standards for project eligibility, application review, Council approval, funding agreements, project monitoring, annual reporting, and record retention to ensure transparency, consistency, and compliance with Department of received has City the She also requirements. Commerce reported approximately $604,000 in HB 1406 revenues to date and expects to receive approximately $100,000 annually. Council discussed implementation of the proposed HB 1406 Affordable Housing Policies and Procedures Manual. Members asked questions regarding eligible uses of the funds, the application and approval process, program administration, Page 4 of 5Page 38 of 160 and evaluation criteria. Staff explained that the program is new to the City, applications will be reviewed and brought to Council for approval, the Community and Economic Development Department will administer the program, and applicants' other funding sources will be considered to maximize the effectiveness of available HB 1406 funds. Mayor Grimm called for public comment three (3) times and no one came forward to speak. MISCELLANEOUS COUNCIL DISCUSSION City Manager Stewart reported that the Washington City Managers Association Conference was being held locally in Kennewick, allowing City staff to attend without incurring travel or lodging expenses. He noted that he and the Deputy City Manager would participate in conference sessions focused on issues facing cities across the state, particularly budget challenges. Mr. Stewart also informed the Council of the upcoming Health Basin Columbia the for opening grand and ribbon-cutting Association West Pasco Clinic and invited Council Members to attend. Finally, he reminded Council that materials had been distributed for the upcoming strategic planning session. He noted that the discussion would focus on the concepts presented in the book Great by Choice, emphasizing successful execution of strategic plans during challenging and uncertain times while continuing to provide quality public services. EXECUTIVE SESSION a) To consider site selection or acquisition of real estate purchase or lease if likelihood that disclosure would increase price per RCW 42.30.110(1)(b) Council adjourned into Executive Session at 7:48 PM for 5 minutes returning at 7:53 PM to consider site selection or acquisition of real estate purchase or lease if likelihood that disclosure would increase price per RCW 42.30.110(1)(b) with Public Works Director and the City Manager. ADJOURNMENT There being no further business, the meeting was adjourned at 7:53 PM. PASSED and APPROVED on _______________________. ADDITIONAL NOTES Adopted Council Goals (Reference Only) APPROVED: ATTEST: Page 5 of 5Page 39 of 160 AGENDA REPORT FOR: City Council August 6, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Kevin Hebdon, Director Finance SUBJECT: Bills and Communications - Approving Claims in the Total Amount of $5,745,796.33 I. ATTACHMENT(S): Accounts Payable 07.23.26 to 08.05.26 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $5,745,796.33 ($3,491,867.71 in Check Nos. 279750 - 280129; $866,960.37 in Electronic Transfer Nos. 853887 - in $1,360,465.25 55465; - 55430 in Check $26,503.00 854115; Nos. Electronic Transfer Nos. 30246324 - 30247090). III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 40 of 160 REPORTING PERIOD: August 17, 2026 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 279750 - 280129 55430 - 55465 Total Check Amount $3,491,867.71 $26,503.00 Total Checks 3,518,370.71$ Electronic Transfer Numbers 853887 - 854115 30246324 - 30247090 Total EFT Amount $866,960.37 $1,360,465.25 $0.00 $0.00 Total EFTs 2,227,425.62$ Grand Total 5,745,796.33$ Councilmember B 100 1,512,349.58 110 69,830.33 140 34,380.79 145 2,901.80 150 61,782.53 160 25,385.45 165 6,527.27 168 45,243.13 169 16,243.23 170 1,805.66 180 2,917.22 182 118,332.00 185 1,924.28 189 576.20 194 49,322.60 195 336.84 196 HOTEL/ MOTEL EXCISE TAX 19,632.80 367 114,327.66 410 1,295,646.22 510 68,081.95 511 5,085.74 515 20,876.13 520 175,337.88 690 2,096,949.04 GRAND TOTAL ALL FUNDS:5,745,796.33$ PAYROLL CLEARING UTILITY, WATER/ SEWER EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - OPERATING BUSINESS EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL MEDICAL/ DENTAL/ VISION INSURANCE ECONOMIC DEVELOPMENT STADIUM/ CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION MULTI-MODAL FACILITY SCHOOL IMPACT FEES RIVERSHORE TRAIL & MARINA MAIN LITTER ABATEMENT CEMETERY ATHLETIC PROGRAMS ANIMAL CONTROL AQUATIC CENTER - PPFD SENIOR CENTER OPERATING C.D. BLOCK GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE Councilmember A SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET 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 Seventeenth day of August, 2026 that the merchandise or services hereinafter specified have been received and are approved for payment: July 23 2026 to August 5, 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 Page 41 of 160 AGENDA REPORT FOR: City Council August 5, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Gabriela Sanchez, City Clerk City Manager SUBJECT: Franklin County Mosquito Control District Board of Trustees Appointment of Mark Willer I. ATTACHMENT(S): Letter of Recommendation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the appointment of Mark Willer to represent the City of Pasco on the Franklin County Mosquito Control District Board of Trustees which expires December 31, 2027. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background: In 2002, the Board of Franklin County Commissioners and the Benton Franklin Health Department discussed the public health need for the formation of a special district to control mosquitoes for public health protection and pest/nuisance relief in Franklin County. January 2003, meeting of the Board of Franklin County Commissioners a resolution was approved, calling for a special election to be held in March 2003 regarding the proposal to establish a Mosquito Control District. The Franklin County electorate approved the formation of the Franklin County Mosquito Control District, and it was formally established on April 2, 2003. A seven-member Board of Trustees was established to oversee the operation of the District. The Trustees are appointed from the following areas of Franklin County to serve two-year terms: Page 42 of 160  County Commissioner District 1  County Commissioner District 2  County Commissioner District 3  City of Pasco  City of Connell  City of Mesa  City of Kahlotus V. DISCUSSION: Recommendation: Franklin County Mosquito Control District (FCMCD) Director David Dorsett submitted a letter of recommendation for the appointment of Mark Willer, a Pasco resident who has expressed interest in serving as the City of Pasco's representative on the FCMCD Board of Trustees until the term expiration of December 31, 2027. Per RCW 17.28.110 (2) Board of Trustees Composition, the governing board of the City (City Council) shall appoint a one member to the FCMCD Board of Trustees, who resided in city-limits. Page 43 of 160 Franklin County Mosquito Control District 2601 Nr Capitol Avenue Pasco,WA 99301 (509)545-4083 June 23,2026 Mayor,Charles Grimm 525 i\.3rdAvenue Pascn,WA 99301 RE:Franklin County Mosquito Control District Board 7 City of l‘asco Representative Dear Mayor Grimm, We are writing regarding the appointment ofa new representative for the City ofPasco on the Franklin County Mosquito Control District Board of'l‘rustees. Your current appointee,Ms.Angela Stoddard,has moved out of state and is no longer eligible to serve as the City of Paseo representative,The District has identi?ed a quali?ed replacement,Mr. Mark Willer,a resident ofthe City of Pasco,who is willing to serve in her place, Mr.Willer resides at—and would serve the remainder of Ms.Stoddard's temi,which expires on December 31,2 ... Please provide written con?rmation as to whether Mr.Willer's appointment is approved by the City ot‘Pascor Thank you for your consideration ofthis request. Respectfully, ?4%” David A.Dorsett Director Franklin County Mosquito Control District Page 44 of 160 AGENDA REPORT FOR: City Council TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Craig Raymond, Deputy Director Community & Economic Development SUBJECT: Resolution 4774 – Adopting the City of Pasco Affordable Housing Policies and Procedures Manual for HB 1406 Funds I. ATTACHMENT(S): Resolution 4774 Resolution 3937 City of Pasco Affordable Housing Policies and Procedures Manual HB1406 Program Guidelines Attachment B – 1406 Program Guidelines Summary Attachment C – Sample Application Form and Checklist Attachment D – Reporting Template for Fund Expenditures II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4774 adopting the City of Pasco Affordable Housing Policies and Procedures Manual for administration of House Bill 1406 affordable housing funds. This item was presented to the City Council at the August 10, 2026 Workshop meeting. III. FISCAL IMPACT: There is no immediate fiscal impact associated with adoption of the Affordable Housing Policies and Procedures Manual. The proposed policy establishes the framework for administration, allocation, monitoring, and reporting of House Bill (HB) 1406 affordable housing funds currently received by the City. Since implementation of the HB 1406 program five years ago, the city has received $604,584.86 in HB 1406 revenue and anticipates receiving approximately $100,764 annually, subject to state distributions. Adoption of the policy does not increase or decrease these revenues but ensures administrative consistency and supports continued compliance with Washington State Department of Commerce requirements governing the use of HB 1406 funds. Page 45 of 160 IV. HISTORY AND FACTS BRIEF: Background In 2019, the Washington State Legislature adopted House Bill 1406, providing local governments the ability to retain a portion of state sales and use tax revenues for affordable housing purposes. The City of Pasco elected to participate in the program through adoption of Resolution No. 3937. HB 1406 revenues may be utilized to support affordable housing activities that benefit households earning at or below sixty percent of Area Median Income (AMI). Eligible activities include acquisition, rehabilitation, and construction of affordable housing, rental assistance, supportive housing, and related housing stability activities. While the City has participated in the HB 1406 program, a formal policies and procedures manual has not previously been adopted to guide administration of these Procedures and Housing Policies proposed The funds. Affordable Manual establishes a consistent framework for program administration, funding decisions, compliance monitoring, reporting, and record retention. Policy Overview The proposed manual establishes: • Eligible uses of HB 1406 funds consistent with state law and Resolution No. 3937. • Income eligibility requirements limiting assistance to households earning at or below 60% of Area Median Income. • Fair housing and nondiscrimination requirements applicable to all funded activities. • Affordability requirements, including a minimum affordability period of 30 years for housing projects receiving assistance. • Procedures for application review, project evaluation, funding approval, disbursement, monitoring, and compliance. Record retention and annual reporting requirements consistent with • Department of Commerce guidelines. Page 46 of 160 • Standardized forms and reporting templates for project applications and program administration. The manual provides a transparent and consistent process for the City to evaluate affordable housing opportunities and ensure accountability for the expenditure of public funds. Impact (other than fiscal) Manual and Policies Housing Procedures the of Adoption Affordable establishes a formal framework for administration of the City's HB 1406 affordable housing program. The policy promotes transparency, consistency, and accountability while providing clear guidance to staff, housing providers, developers, nonprofit organizations, and other funding applicants. The policy supports the City's ongoing efforts to increase housing opportunities for low- and moderate-income households and address local housing needs. V. DISCUSSION: Recommendation Staff recommends approval of Resolution No. 4774 adopting the City of Pasco Affordable Housing Policies and Procedures Manual. The proposed policy establishes clear administrative procedures, ensures compliance with state requirements, and provides a transparent framework for evaluating and funding affordable housing activities within the City. Adoption of the policy will provide consistency in program administration and support the City's long-term affordable housing objectives. Constraints House Bill 1406 revenues are subject to specific statutory requirements and Department formally adopted Without of reporting Commerce obligations. policies and procedures, the City lacks a comprehensive framework for administering, monitoring, and documenting the use of HB 1406 funds. Failure to maintain adequate policies and procedures could increase the risk of inconsistent challenges program administration, compliance findings, or demonstrating appropriate use of public funds. Adoption of the proposed manual establishes clear expectations and accountability measures for the expenditure of affordable housing revenues. Next Steps Page 47 of 160 Upon approval, staff will implement the Affordable Housing Policies and Procedures Manual as the governing document for HB 1406 program administration. Future funding requests and affordable housing projects utilizing HB 1406 revenues will be evaluated and administered in accordance with the adopted policies and procedures. Staff will continue annual reporting to the Washington State Department of Commerce and provide updates to the City Council regarding program activities, expenditures, and outcomes. Alternatives 1. Approve Resolution No. 4774 adopting the City of Pasco Affordable Housing Policies and Procedures Manual. 2. Continue consideration of the Resolution and provide additional direction to staff. 3. Policies Housing Affordable Pasco of Decline the adopt to and City Procedures Manual. Page 48 of 160 Resolution – THE CITY OF PASCO AFFORDABLE HOUSING POLICIES AND PROCEDURES MANAUAL FOR ADMINISTRATION OF HOUSE BILL 1406 AFFORDABLE HOUSING FUNDS-1 RESOLUTION NO. 4774 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, APPROVES ADOPTING THE CITY OF PASCO AFFORDABLE HOUSING POLICIES AND PROCEDURES MANUAL FOR ADMINISTRATION OF HOUSE BILL 1406 AFFORDABLE HOUSING FUNDS. WHEREAS, the Washington State Legislature adopted House Bill 1406, authorizing local governments to retain a portion of state sales and use tax revenues for affordable housing purposes; and WHEREAS, the City of Pasco elected to participate in the HB 1406 program through adoption of Resolution No. 3937; and WHEREAS, HB 1406 revenues may be utilized to support affordable housing activities benefiting households earning at or below sixty percent (60%) of Area Median Income, including acquisition, rehabilitation, construction of affordable housing, rental assistance, supportive housing, and related housing stability activities; and WHEREAS, the City has determined that a formal Affordable Housing Policies and Procedures administrative necessary to establish consistent is Manual procedures for the allocation, monitoring, reporting, and expenditure of HB 1406 funds; and WHEREAS, the proposed Affordable Housing Policies and Procedures Manual establishes eligibility requirements, affordability standards, application and review procedures, compliance monitoring requirements, record retention standards, and reporting procedures consistent with Washington State Department of Commerce requirements; and WHEREAS, the City Council finds that adoption of the Affordable Housing Policies and Procedures Manual promotes transparency, accountability, consistency, and responsible stewardship of public funds while supporting the City's affordable housing objectives. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City of Pasco Affordable Housing Policies and Procedures Manual, attached hereto and incorporated herein by this reference as Exhibit A, is hereby adopted as the governing document for administration of House Bill 1406 affordable housing funds. Be It Further Resolved, The City Manager, or designee, is authorized to implement and administer the Affordable Housing Policies and Procedures Manual and to take all actions Page 49 of 160 Resolution – THE CITY OF PASCO AFFORDABLE HOUSING POLICIES AND PROCEDURES MANAUAL FOR ADMINISTRATION OF HOUSE BILL 1406 AFFORDABLE HOUSING FUNDS-1 necessary to ensure compliance with applicable state laws, Department of Commerce requirements, and reporting obligations associated with HB 1406 revenues. 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: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 50 of 160 RESOLUTION NO.3937 A RESOLUTION OF THE CITY OF PASCO,WASHINGTONDECLARINGTHEINTENTTOADOPTLEGISLATIONTOAUTHORIZETHEUSEOFAPORTIONOFTHESALESANDUSETAXFORAFFORDABLEANDSUPPORTIVEHOUSINGINACCORDANCEWITHSUBSTITUTEHOUSEBILL1406(CHAPTER 338,LAWS OF 2019),ANDOTHERMATTERSRELATEDTHERETO. WHEREAS,in the 2019 Regular Session,the Washington State Legislature approved,andtheGovernorsigned,Substitute House Bill 1406 (Chapter 338,Laws of 201 9)(“SHB 1406”);and WHEREAS,SHB 1406 authorizes the governing body of a city or county to allocate aportionofthelocalsalesandusetaxfortheacquisition,construction or rehabilitation of affordablehousingorfacilitiesprovidingsupportivehousing,and for the operations and maintenance costsofaffordableorsupportivehousing.The City of Pasco has a population less than 100,000,whichmakesrentalassistanceanothereligibleexpense;and WHEREAS,the tax will be credited against state sales taxes collected within the City ofPasco,Washington and,therefore,will not result in higher sales and use taxes within the City ofPasco,Washington,and will represent an additional source of funding to address housing needs intheCityofPasco,Washington;and WHEREAS,the tax must be used to assist persons whose income is at or below sixty percent of the City of Pasco median income;and WHEREAS,the City of Pasco has a need to provide a range of affordable and supportivehousingandhasdeterminedthatimposingthesalesandusetaxtoaddressthisneedwillbene?titscitizens;and WHEREAS,in order for a city or county to impose the tax,within six months of theeffectivedateofSHB1406,or January 28,2020,the governing body must adopt a resolution ofintenttoauthorizethemaximumcapacityofthetax,and Within twelve months of the effectivedateofSHB1406,or July 28,2020,must adopt legislation to authorize the maximum capacity ofthetax;and WHEREAS,this resolution constitutes the resolution of intent required by SHB 1406;and WHEREAS,thePasco City Council now desires to declare its intent to impose a localsalesandusetaxasauthorizedbySHB1406assetforthherein;NOW,THEREFORE, Resolution -1 Page 51 of 160 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1.Resolution of Intent.The City Council of the City of Pasco declares its intent to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the effective date of SHB 1406,or by July 28,2020. Section 2.Further Authority:Rati?cation.All City of?cials,their agents,and representatives are hereby authorized and directed to undertake all action necessary or desirable ?'om time to time to carry out the terms of,and complete the actions contemplated by,this resolution.All acts taken pursuant to the authority of this resolution but prior to its effective date are hereby rati?ed. Section 3.Effective Date.This resolution shall take effect immediately upon its passage and adoption. PASSED by the City Council of the City of Pasco,Washington on this 21Stday of January, 2020 £01 ”?g Saul Martinez Mayor ATTEST:APPROVED AS TO FORM: Debra Barham,CMC City Clerk erguson Law,PLLC .ity Attorney Resolution -2 Page 52 of 160 City of Pasco Affordable Housing Policies and Procedures Manual – HB 1406 Program Executive Summary The City of Pasco Affordable Housing Policies and Procedures Manual outlines the implementation and administration of funds received under House Bill 1406 and authorized by Resolution No. 3937. This manual establishes policies, procedures, and administrative requirements for eligible activities that support the development, preservation, and operation of affordable housing within the City of Pasco. Only the allowable uses specified in Resolution No. 3937 are included herein. I. Introduction The City of Pasco recognizes the importance of ensuring housing affordability and stability for all residents. House Bill 1406 provides local governments with authority to retain a portion of the state’s sales tax revenue for the purpose of supporting affordable housing. Resolution No. 3937 authorizes participation in this program. This manual serves as a guide for the administration and oversight of HB 1406 funds. II. Program Overview The HB 1406 Program provides local governments with flexible funding to address affordable housing needs. Funds must be used in accordance with Washington State Department of Commerce guidelines and Resolution No. 3937. Key objectives include: • Support the creation, acquisition, rehabilitation, or preservation of affordable housing units. • Provide rental assistance and support services to qualifying low-income households. • Prevent homelessness and promote housing stability. Program Administration: The [Responsible Department] will oversee program implementation, coordinate eligible projects, and ensure compliance with state and local requirements. Page 53 of 160 III. Allowable Uses of Funds As specified in Resolution No. 3937, HB 1406 funds may be used for the following eligible activities: 1. Acquisition, rehabilitation, or construction of affordable housing projects. 2. Operations and maintenance costs of new or existing affordable housing projects. 3. Rental assistance programs that serve households at or below 60% of Area Median Income (AMI). 4. Supportive housing and related services for low-income or homeless populations. 5. Other uses explicitly authorized by Resolution No. 3937 or subsequent Council action. IV. Program Policies A. Eligibility Criteria HB 1406 funds shall benefit households with incomes at or below sixty percent (60%) of the City of Pasco median income thresholds established by HUD and adopted by the City. B. Non-Discrimination and Fair Housing All projects and programs funded through this policy must comply with federal and state fair housing laws, ensuring equal access regardless of race, color, religion, sex, national origin, familial status, disability, or any other protected class. C. Term of Affordability Projects funded with HB 1406 revenues shall maintain affordability for a minimum term of 30 years, unless otherwise authorized by the City Council. V. Program Procedures A. Application Process Applicants seeking HB 1406 funding shall submit a written proposal to the [Responsible Department]. The proposal must include project description, budget, timeline, and demonstration of compliance with eligible use categories. B. Review and Approval Applications will be reviewed by the [Review Committee or Department] to verify eligibility, alignment with program goals, and available funding. Recommendations shall be forwarded to City Council for approval. C. Funding Agreements and Disbursement Page 54 of 160 Approved projects will enter into a funding agreement specifying project scope, affordability requirements, reporting obligations, and reimbursement procedures. All disbursements must comply with City financial controls. D. Monitoring and Compliance The [Responsible Department] shall conduct periodic monitoring of funded projects to verify compliance with affordability requirements, eligible use, and reporting standards established by the Department of Commerce. E. Record Retention and Audit All records related to HB 1406 expenditures shall be maintained for a minimum of six (6) years following the close of the fiscal year in which the funds were expended. VI. Compliance and Reporting Requirements The City shall comply with all reporting requirements established by the Washington State Department of Commerce. Annual reports shall include a summary of expenditures, project accomplishments, and number of households served. Reports shall be submitted by the [Responsible Department] to Commerce and presented to the City Council. VII. Attachments and References Attachment A – Resolution No. 3937 (Authorizing Participation in HB 1406 Program) Attachment B – 1406 Program Guidelines Summary (WA Dept. of Commerce) Attachment C – Sample Application Form and Checklist Attachment D – Reporting Template for Fund Expenditures Page 55 of 160 City of Pasco HB1406 Program Guidelines 1. Purpose and Background The City of Pasco adopted Resolution No. 3937 to implement the provisions of House Bill (HB) 1406, allowing the City to retain a portion of the state sales and use tax for affordable and supportive housing. This document establishes the program guidelines for the use, management, and reporting of HB1406 funds administered by the City of Pasco Community & Economic Development Department (CED). 2. Program Overview HB1406 enables cities and counties in Washington State to utilize a portion of the local sales tax for housing purposes without increasing the tax rate. The City of Pasco’s HB1406 program supports the creation, preservation, of affordable housing. All housing units receiving HB1406 funding may only be provided to persons whose income is at or below sixty percent (60%) of the area median income of the city. Projects may allocate specific units in a project as 1406 funded units. This will allow for mixed-income and mixed-use projects. 3. Eligible Activities and Expenditures Funds may be used for eligible housing-related activities consistent with RCW 82.14.540 and the City's Resolution 3937, including: Acquisition, rehabilitation, or construction of affordable housing New affordable rental housing Conversion of an existing structure from another use to housing 4. Program Administration The Community & Economic Development Department (CED) shall oversee implementation and management of the HB1406 program. CED is responsible for ensuring compliance with state and local requirements, approving expenditures, and coordinating with partner organizations and agencies that deliver affordable housing. 5. Funding Allocation and Prioritization HB1406 funds will be allocated annually based on available revenue and City Council-approved priorities. CED may recommend funding strategies or partnerships that align with the City’s Comprehensive Plan, Consolidated Plan, and housing needs assessments. 6. Reporting and Compliance The City shall maintain financial and programmatic records demonstrating the appropriate use of HB1406 funds. CED will submit annual reports to the Washington State Department of Commerce and provide updates to the City Council on program performance, expenditures, and outcomes. Page 56 of 160 7. Program Duration The City of Pasco’s authority to retain HB1406 revenue extends for 20 years from the effective date of the Department of Revenue’s distribution. Continuation of activities is subject to available funds and compliance with applicable state requirements. 8. Amendments and Review These guidelines may be reviewed and updated periodically by the Community & Economic Development Department to ensure consistency with state law, City policy, and evolving community housing needs. Proposed amendments shall be presented to the City Council for approval. 9. Contact Information For questions or more information, please contact: City of Pasco – Community & Economic Development Department 525 N. 3rd Avenue, Pasco, WA 99301 Phone: (509) 545-3441 Website: www.pasco-wa.gov Page 57 of 160 Attachment B – 1406 Program Guidelines Summary This summary outlines the key components of Washington State House Bill (HB) 1406 and related Department of Commerce requirements governing the use of local sales tax credit revenues for affordable housing. 1. Purpose of HB 1406 HB 1406 allows local governments to retain a portion of the state’s sales and use tax to support affordable housing. Funds must benefit households earning at or below 60% of the Area Median Income (AMI). 2. Eligible Uses of Funds Allowable activities include: • • Acquisition, rehabilitation, or construction of affordable housing. • • Operations and maintenance of new or existing affordable housing. • • Rental assistance programs for qualifying households. • • Supportive housing and related services for low-income or homeless populations. 3. Ineligible Uses HB 1406 funds may not be used for: • • Administrative costs exceeding allowable limits. • • Expenditures not directly tied to eligible affordable housing activities. • • Projects serving households above the 60% AMI threshold. 4. Affordability and Duration Requirements All projects funded must ensure affordability for a minimum of 30 years. The affordability term must be secured through recorded covenants or agreements. 5. Reporting and Compliance Local governments must report annually to the Washington State Department of Commerce, detailing expenditures, outcomes, and number of households served. Reports must also be presented to the City Council for public transparency. Page 58 of 160 6. Recordkeeping All documentation must be retained for at least six years after the expenditure of funds and be made available for audit or inspection by Commerce or other authorized entities. Page 59 of 160 Attachment C – Sample Application Form and Checklist This application form is provided for organizations or departments requesting HB 1406 funds. Applicant Information Organization Name: _______________________________________________ Primary Contact Person: __________________________________________ Address: _______________________________________________________ Phone: ______________________ Email: ____________________________ Project Information Project Title: _________________________________________________ Project Location: ______________________________________________ Project Type (check one): ☐ Acquisition ☐ Rehabilitation ☐ New Construction ☐ Rental Assistance ☐ Supportive Housing Target Population Households Served: ☐ ≤30% AMI ☐ ≤50% AMI ☐ ≤60% AMI Number of Units or Households Assisted: __________________________ Funding Request Total Project Cost: $__________________ Amount of HB 1406 Funds Requested: $__________________ Other Funding Sources: ________________________________________ Required Attachments Checklist • ☐ Project narrative and description Page 60 of 160 • ☐ Budget and financing plan • ☐ Site control documentation (if applicable) • ☐ Timeline and milestones • ☐ Proof of eligibility (income verification plan, affordability period, etc.) • ☐ Compliance acknowledgment with Resolution No. 3937 Certification I certify that the information provided is accurate and that funds, if awarded, will be used in compliance with the City of Pasco Affordable Housing Policies and Procedures Manual and Resolution No. 3937. Authorized Representative Signature: ___________________________ Date: ___________ Page 61 of 160 Attachment D – Reporting Template for Fund Expenditures [Insert City of Pasco Logo Here] City of Pasco – HB 1406 Affordable Housing Program Annual Reporting Template for Fund Expenditures Reporting Period: ______________________ Project Information Funding Summary Units and Beneficiaries Outcomes Project Name Developer/Agency Total Funds Awarded Funds Expended (This Year) Units Created/Assisted Population Served (AMI%) Notes Outcomes Summary Certification of Report Accuracy: Prepared by: __________________________________________ Date: __________________ Reviewed by: __________________________________________ Additional Notes or Comments: Page 62 of 160 AGENDA REPORT FOR: City Council TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Craig Raymond, Deputy Director Community & Economic Development SUBJECT: Resolution 4775 - Updated Tri-Cities HOME Consortium Citizen Participation Plan I. ATTACHMENT(S): 1. Proposed Resolution 4775: Updating the Tri-Cities HOME Consortium Participation Plan 2. Updated Tri-Cities HOME Consortium Citizen Participation Plan 3. Citizen Participation Plan Update Memorandum- September 26, 2025 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4775, Updating the Tri-Cities HOME Consortium Participation Plan. This item was presented at the August 10, 2026 City Council Workshop III. FISCAL IMPACT: There is no direct fiscal impact associated with adoption of the updated Citizen Participation Plan, Adoption of the Plan is required to maintain compliance with U.S. Department of Housing and Urban Development (HUD) regulations governing the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME). Compliance with these requirements supports the City's continued participation in federally funded housing and community development program. IV. HISTORY AND FACTS BRIEF: Background The City of Pasco participates in the Tri-Cities HOME Consortium, a regional partnership consisting of the Cities of Kennewick, Pasco, and Richland that administers federal HOME Investment Partnerships Program funding. In addition, the City administers its own Community Development Block Grant Page 63 of 160 Program. HUD regulations require participating jurisdictions to maintain a Citizen Participation Plan that provides residents, stakeholders, community organizations, and other interested parties meaningful opportunities to participate in the planning, implementation, and evaluation of federally funded housing and community development programs. The Citizen Participation Plan establishes the public participation process for the development of the Assessment of Fair Housing, Consolidated Plan, Annual Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and any substantial amendments to those documents. The Tri-Cities HOME Consortium recently completed a review of the existing Citizen Participation Plan and prepared revisions to ensure continued compliance with HUD regulations and current public engagement practices. Plan Updates The primary updates to the Citizen Participation Plan include:  Removal of temporary COVID-19 provisions and references to HUD waivers that are no longer applicable.  Addition of language clarifying the approval and implementation process for the Citizen Participation Plan  Updates to public notification procedures, including contingency language regarding federal fundingallocations and expanded use of social media and electronic communication methods for public outreach.  Addition of a Conflict-of-Interest section to strengthen transparency and compliance requirements.  Revisions substantial amendment and minor amendment procedures for each Consortium member city. The updated Plan continues to provide opportunities for public participation through public hearings, public comment periods, accessibility accommodations, language assistance services, complaint procedures, and public access to program records. Impact (other than fiscal) Adoption of the updated Citizen Participation Plan ensures continued compliance with HUD citizen participation requirements and provides a Page 64 of 160 consistent framework for public involvement in the City's housing and community development programs. The Plan promotes transparency, accountability, and meaningful public engagement in the use of federal funds. V. DISCUSSION: Recommendation Staff recommends approval of Resolution No. 4775 adopting the updated Tri- are revisions The Plan. Consortium Citizen HOME Cities Participation administrative in nature and are intended to maintain compliance with HUD regulations, improve clarity, and reflect current public participation practices utilized by Consortium member jurisdictions. Approval City continue Pasco of the to will Plan updated the of allow participating in the Tri-Cities HOME Consortium and administering federal housing HUD with accordance in funds community and development requirements. Constraints HUD regulations require participating jurisdictions to maintain and follow an adopted Citizen Participation Plan. Failure to adopt the updated Plan may result in noncompliance with HUD citizen participation requirements and could affect the City's eligibility to receive and administer Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) funds. Adoptions of the updated Plan ensures the City remains compliant with federal meaningful residents provide and continues requirements to opportunities to participate in the planning, implementation, and evaluation of federally funded housing and community development programs. Next Steps Following adoption by the City Council, the updated Citizen Participation Plan will become the governing public participation framework for the City's federally funded housing and community development programs. The Plan will be utilized during the preparation and implementation of future Consolidated Plans, Annual Action Plans, Consolidated Annual Performance and Evaluation Reports (CAPER), Assessments of Fair Housing, and any substantial amendments. Alternatives 1. Approve Resolution No. 4775 adopting the updated Tri-Cities HOME Consortium Citizen Participation Plan. Page 65 of 160 2. Continue consideration of the Resolution and provide additional direction to staff. 3. Decline to adopt the updated Tri-Cities HOME Consortium Citizen Participation Plan. Page 66 of 160 Resolution – UPDATED TRI-CITIES HOME CONSORTIUM CITIZEN PARTICIPATION PLAN - 1 RESOLUTION NO. 4775 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, APPROVES ADOPTING THE UPDATED TRI-CITIES HOME CONSORTIUM CITIZEN PARTICIPATION PLAN. WHEREAS, the City of Pasco participates in the Tri-Cities HOME Consortium, a regional partnership the Richland for of Pasco, Kennewick, and the consisting of Cities administration of the HOME Investment Partnerships Program; and WHEREAS, the City of Pasco also administers Community Development Block Grant (CDBG) funds and is required by the United States Department of Housing and Urban Development (HUD) to maintain a Citizen Participation Plan that provides residents and interested parties’ meaningful opportunities to participate in federally funded housing and community development programs; and WHEREAS, the Citizen Participation Plan establishes procedures for public participation in the development, implementation, and evaluation of the Assessment of Fair Housing, Consolidated Plan, Annual Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and any substantial amendments thereto; and WHEREAS, the Tri-Cities HOME Consortium has reviewed and updated the Citizen Participation Plan to ensure continued compliance with HUD regulations, improve public participation current administrative and procedures, reflect practices; and WHEREAS, Citizen updated the that adoption of Council City the finds Participation Plan promotes transparency, accountability, and meaningful public involvement in the planning and administration of federally funded housing and community development programs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the Tri-Cities HOME Consortium Citizen Participation Plan, attached hereto and incorporated herein by this reference as Exhibit A, is hereby adopted., and Be It Further Resolved, that the City Manager, or designee, is authorized to implement and administer the Citizen Participation Plan and to take all actions necessary to comply with applicable HUD regulations governing the HOME Investment Partnerships Program, Community Development Block housing and Grant Program, and other related federal community development programs., and Be It Further Resolved, that this resolution shall take effect immediately. Page 67 of 160 Resolution – UPDATED TRI-CITIES HOME CONSORTIUM CITIZEN PARTICIPATION PLAN - 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 68 of 160 CITIZEN PARTICIPATION PLAN Page 69 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 1 of 8 Tri-Cities HOME Consortium Citizen Participation Plan Community Development Block Grant and HOME Programs Citizen this of purpose The the Triguide to framework provide to a Plan Participation is - HOME Cities Consortium (Consortium) and its members (the Cities of Kennewick, Pasco and Richland, as Lead) in their efforts to encourage citizen participation in the planning, implementation and assessment in the Community Development Block Grant (CDBG) and the HOME Investment Partnership (HOME) programs. Specifically, in the Assessment of Fair Housing, Consolidated Plan, Annual Action Plan, Citizen Participation Plan, and Consolidated Annual Performance and Evaluation Report (CAPER). This Citizen Participation Plan is prepared and implemented in accordance with the guidance provided in U.S. Department of Housing and Urban Development (HUD) Regulations 24 CFR Part 91.105. Prior to implementation, the Citizen Participation Plan will be available for a period of 30 days for public comment. Any amendment to the Plan will be made available for a period of 30 days advising citizens of an opportunity on the proposed am to comment or and a views the comments endment. summary A of summary of any comments or views not accepted and the reasons why it was not accepted will be attached to the plan submitted to HUD for final approval. Each city has established individual citizen advisory committees to serve as a link between the public, city staff and City Council. in making funding assists the committee only Kennewick, the City In of recommendations for the Annual Action Plan; while in Pasco and Richland the committees aid in providing advice during the development of the Consolidated Plan, Annual Action Plans, CAPER review, and to advise in the administration and utilization of HUD grants. Each advisory position is selected based upon providing a balance of specific community interests or expertise to the committee. Low and moderate-income people are encouraged to participate when a position becomes vacant. In Kennewick this is accomplished by the city clerk’s office, while in Pasco and Richland this is accomplished through public solicitations as well as direct communication with residents and participants in various social service organizations. Each advisory and make and regarding CDBG decisions review meet necessary as to will committee HOME. These meetings are open to the public. The advisory committees review written funding requests, attend oral presentations by applicants, and make funding recommendations to the respective City Council to aid in the development of the Annual Action Plan. It is the intent of Tri-Cities HOME Consortium to encourage and facilitate the participation of all citizens in the development of the Assessment of Fair Housing (AFH), Consolidated Plan, Annual Action Plan, any substantial amendments to the plans and the performance report through public hearings and meetings. Additionally, low classes, protected of involvement Consortium encourages the - moderateand -income people, particularly neighborhoods where 51 percent or an amount determined by HUD as an exception criteria service area, where federal funding is proposed to be used. The Consortium also welcomes the participation of minority populations, non-English speaking persons and persons with disabilities. Consultations, and local regional with made be mailings/emails contact other and direct with will organizations and through other publications that serve those in protected classes, or that provide assisted housing, health services, and social services, including those focusing on services to elderly children, persons, persons with disabilities and their families, and homeless persons. Introduction Citizen Advisory Committee Encouraging Public Participation Page 70 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 2 of 8 The Consolidated Plan The development of the Consolidated Plan is a cooperative effort between the cities of Kennewick, Pasco and Richland as members of a Consortium, businesses, developers, nonprofit organization, philanthropic organizations, and community-based and faith-based organizations that serve low and moderate-income people. This document provides the planning framework, strategies, goals and performance benchmarks to be achieved over a five-year period by the CDBG and HOME Programs. HUD will evaluate the performance of each City and the Tri-Cities HOME Consortium through the accomplishments of community development and housing program goals established in the Consolidated Plan. Note that each City will be responsible for taking their CDBG Consolidated Plan’s to their respective Councils for approval and the Lead Entity will be responsible for the HOME Consolidated Plan on behalf of all member cities. At least two public hearings will be held by the Consortium throughout the development of the Consolidated Plan to allow participation from the public on this planning document. At least one of the public hearings will be held before the Consolidated Plan is published for comment. The draft Consolidated Plan will be made available for public interested allow to days for a minimum of for and comment review 30 people and to commentorganizations prior to completion and submission of the final plan to HUD. A summary of the comments or views and a summary of any comments or views not accepted and the reasons why it was not accepted will be included in the final plan submitted to HUD for final approval. Assessment of Fair Housing Plan The Tri-Cities HOME Consortium and the two local housing authorities, Kennewick Public Housing Authority (KHA) and City of Pasco & Franklin Housing Authority (HACPFC) operating within the Consortium jurisdiction will work to align their consolidated planning cycle(s) in accordance with regulations at 24 CFR Part 91 for consolidated plan program participants, and 24 CFR Part 903, for Public Housing Authorities. PHAs are anticipated to collaborate with the Tri Cities HOME Consortium to prepare the Assessment of Fair Housing. The Tri-Cities HOME Consortium and the Kennewick and Pasco Housing Authorities will work together by establishing comprehensive community development goals and ensure strategies and actions are taken to Affirmatively Further Fair Housing. Moreover, local and regional fair housing organizations and enforcement agencies will be consulted with. The Consortium members will report progress on those goals to HUD through the consolidated annual performance reports (CAPER) that are posted on each Cities website and in a HUD database. The Fair Housing Act sets out the following four clear fair housing goals for all communities to ensure greater opportunities for all Americans: 1. Reduce segregation, and build on the nation’s increasing racial, geographic and economic diversity. 2. Eliminate racially and ethnically concentrated areas of poverty 3. assets Reduce disparities in access to important community such as quality schools, job centers, and transit 4. Narrow the gaps that leave families with children, people with disabilities, and people of different races, colors and national origins with more severe housing problems (disproportionate housing needs) The Public, residents, public agencies and other interested parties will have access to any HUD provided data and other supplemental information the HOME Consortium plans to incorporate into its Assessment of Fair Housing (AFH) at the start of the public participation process or as soon as feasible after. The HOME Consortium may make HUD provided data available to the public by referencing the data on the HUD website. Consortium staff will hold at least one public hearing and meet with community groups, reviews HUD data tables and HUD maps to develop the Assessment of Fair Housing (AFH) Plan goals. Through collaboration with the Housing Authorities of Kennewick and Pasco, staff may consult with HA Resident Boards in Page 71 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 3 of 8 accordance with procedures described in 24 CFR 903.13, 903.15, 903.17 and 903.19 in the process of conducting community and Advisory Resident obtaining Board Housing Fair of Assessment the (AFH), feedback, and addressing complaints. The draft AFH Plan will be made available for public review and comment for a minimum of 30 days as a Consortium plan. A any not views or comments a summary of views or the comments of summary and accepted and the reasons why it was not accepted will be included in the Assessment of Fair Housing (AFH) Plan, submitted to HUD for final approval. Annual Action Plan (AAP) The AAP is a document that serves as the application for annual funding to HUD under the CDBG and HOME Programs and identifies federal and other funding resources that are expected to be used to address the the in C identified needs onsolidated Plan will that and activities programs represents This . be plan undertaken from January 1 through December 31 of each program year. It identifies the amount of grant funds and program income each city anticipates receiving each year, gives a specific description of the programs and activities that will be used to address the priority needs established in the Consolidated Plan, and provides low to benefit and moderate benchmarks and goals -income people in which to measure program performance. At least two public hearings will be held by each individual City each year at separate stages of development of the plan. The first public hearing will occur to obtain public comments on community and development needs. The draft AAP Plan will then be made available for public review and comment for a minimum of 30 days to allow for interested people and organizations to comment prior to completion and submission of the final plan to HUD. A summary of the comments or views and a summary of any comments or views not accepted and the reasons why it was not accepted will be included in the final plan. The Annual Action Plan is submitted to HUD once grant formula allocations have been announced each program year and approved by all three city councils. Section 108 Loan Guarantee Program Section 108 of the Housing and Community Development Act of 1974 provides for a loan guarantee or Pasco (Kennewick, Grantee member a and If Program. CDBG to the specific component applicable, Richland) moves forward with a program application to HUD the Grantee will comply with requirements in 24 CFR 570.704(a)(2). In addition, the following would apply: • Prior to submission of an application for loan guarantee assistance to HUD the Grantee must publish the proposed examine application and to to the wide to allow community application the public provide comments on the proposed application. • The public will be given timely notification of public hearings, reasonable and timely access to local meetings, information, and records relating to the proposed and actual use of guaranteed loan funds, including, but not limited to the amount of funds expected to be made available, including anticipated with guaranteed loan program income generated from activities carried out funds, range of eligible activities to be undertaken, proposed low-moderate beneficiaries, etc. Technical assistance may be provided to representative groups at the discretion of the Grantee. • The public will be provided with reasonable advance notice of, and opportunity to comment on, proposed activities not previously included in the application and activities, which are proposed to be scope, in beneficiaries or location, purpose, deleted in terms changed substantially or of accordance with requirement for a significant amendment. • Grantee policies and procedures will provide for timely written answers to written complaints and grievances within 15 working days of receipt of the complaint, where practicable. Page 72 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 4 of 8 This report describes the accomplishments of each activity undertaken during the previous year, identifies how funds were actually used versus how the funds were proposed to be used, what impacts the activity realized, and to what extent the funds benefited low and moderate-income people. The draft CAPER will be made available for public review and comment for a minimum of 15 days to allow for interested people and organizations to comment prior to completion. A summary of the comments or views and a summary of any comments or views not accepted and the reasons why it was not accepted will be included in the final plan submitted to HUD for final approval. The CAPER is due no later than 90 days following the end of the program year, or by March 31 of each year. Public hearings and meetings will be posted on the respective web sites of each city. All required elements of the Notice will be provided, including the specific date when the document is available for comment and the date close. will period the comment when be provided will posting of the Screen shots the to show availability of the document to the public for comment. Public notices will be available on each respective member website city’s for the hearing.to days 14 least at prior Lead will Entity The conduct public the hearing for the use of HOME funds. Each city will conduct their own public hearing for use of their own respective CDBG funds. Public hearing notices will also be made available to one bilingual publication. The notice will include some or all of the following information as appropriate to the particular event: • The date, time and place. • Estimated amount of funds that will be available for distribution, and the amount that will benefit low and moderate-income people. • Topic(s) to be discussed including, but not limited to, housing and community development needs, development of proposed activities, and review of program performance. • Proposed strategies and actions for AFH. • Basic information about the program(s). • Timing and procedures followed in the development and approval of the Consolidated Plan, Annual Action Plan, Substantial Amendments, or CAPER. • Contact name and phone number for requesting additional information or any special accommodations. • Contingency language will be included in the notice to clarify how the Lead Entity and each respective city will adjust its proposed Plan to match its actual allocation once actual amounts become known. Public hearings and meetings will be held at times and in locations convenient to potential or actual beneficiaries, and that are easily accessible to persons with disabilities. All comments and views of residents of the community in writing or orally during a public hearing or meeting will be considered and attached to the plan. amendments Fair of Assessment Plan, or to the Citizen substantial Housing, The draft Participation Consolidated Plan, and Annual Action Plan will be made available to the public for public comment for a minimum of 30 days as required, while the CAPER will be available for a minimum of 15 days for public comment. The Notice shall contain the public comment period, the locations where the plan is available for review, and a summary of the plan. The Notice will be published on each city’s respective website. In addition, the cities may publish announcements through their social media accounts, bilingual publication/online, and in other places frequented by the public. Additionally, direct outreach to local and regional organizations that serve those in protected classes, housing agencies, social assisted housing providers, public service agencies, and advocacy groups, as well as their beneficiaries, will be utilized to broaden the efforts to notify all. All comments and views of residents of the community in writing during a public comment period will be Consolidated Annual Performance and Evaluation Report (CAPER) Public Hearing Notice Public Comment Period Page 73 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 5 of 8 considered and attached to the plan. The following table provides a summary of the public comment period for each document. Plan Public Comment Period 5-year AFH Plan Consortium only 30-Day 5-year Consolidated Plan 30-Day Annual Action Plan 30-Day Citizen Participation Plan 30-Day Consolidated Annual Performance and Evaluation Report (CAPER) 15-Day A reasonable number of free copies of the draft plan will be available upon request by calling or visiting made be draft plan The hours. business may during Office City’s respective the regular available in an alternative format with a three-day notice for a request to the respective city member. reasonable a as need (LEP) Proficiency the Limited address elected to has The Consortium English accommodation. Language assistance will be given to ensure meaningful access to participation by non- English-speaking residents of the community. Given a minimum of three-day notice, during regular business hours, the following accommodation may be requested: 1. Interpretation services for clients, at no cost to the clients, 2. Documents may be translated for clients who do not communicate in English, 3. A language line shall be provided for clients 4. Consortium members shall provide printed materials in alternate formats for clients, or 5. Consortium members shall make whatever reasonable accommodations are needed to improve accessibility to programs, activities and services. Request assistance by contacting the respective City Members: • City of Richland, Development Services Office, 509.942.7580 • City of Kennewick, Community Planning Department, (509)585-4432 • City of Pasco, Community and Economic Development Department, (509)545-3441 Pursuant to the Rehabilitation Act of 1973 and the Americans with Disability Act of 1990, within reason, any individual with an impairment or disability who requires reasonable accommodation to attend or participate in a meeting or public hearing may request assistance. Assistance may be requested 3 working days prior to the meeting, during regular business hours. Request assistance by contacting the respective City Members: • City of Richland, Development Services Office, 509.942.7580 • City of Kennewick, City Clerk’s Office, (509) 585-4273 • City of Pasco, Community and Economic Development Department, (509) 545-3441 The Citizen Participation Plan recognizes Kennewick, Pasco and Richland City Councils as the elected governing body for each City. The draft Assessment of Fair Housing, Consolidated Plan and/or Annual Non-English Speakers Reasonable Accommodation Plan Approval Page 74 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 6 of 8 Action Plan as well as Substantial Amendments to the Plans will be presented to the respective member City Council for approval before submitting to HUD. These are regularly scheduled Council meetings that are open public meetings, broadcast live and/or recorded. A “substantial amendment” is an amendment to the Consolidated Plan/Annual Action Plan that requires 30 days of public comment. Prior to submitting substantial amendments to HUD, the cities will provide citizens with a 30-day notice of an opportunity to comment whenever a substantial amendment is being proposed. The cities shall consider any comments received in preparing substantial amendments. A summary of all comments received shall be attached to any substantial amendment of the plan. Any comments that are not accepted shall be included in this summary along with the reason they were not accepted. A substantial amendment is defined, in accordance with 24 CFR 91.505(a), as: 1. A change in allocation priorities (any change greater than 25 percent in an individual project budget) or a change in the method of distribution of funds. 2. Carrying out an activity (including those funded exclusively with program income) not previously described in the Consolidated Plan or Annual Action Plan; or 3. A change in the purpose, scope, location or beneficiaries of an activity. Changes that are not considered substantial amendments: 1. Changes to the CDBG or HOME budget for a project by an amount that is less than 25 percent. 2. Consolidated Plan data updates such as census data, income limits, fair market rents, HOME high and low rent limits, HOME subsidy limits, and similar types of data. 3. A minor change in location if the purpose, scope, and intended beneficiaries remain essentially the same; or 4. The transfer of funds within a project from one approved budget line item to another approved budget line item (e.g., construction rather than engineering). Responding to Complaints Each city will consider written complaints from the public regarding the citizen participation process, the Consolidated Plan, the Assessment of Fair Housing Plan, the Annual Action Plan, any amendments and the CAPER and provide a written response within 15 working days. If the complainant is unable to file a complaint due to disability, alternative filing methods will be allowed by contacting the respective city. Access to Records If citizens are each relating to to information and access in interested records c HOME and CDBG ity’s programs they shall submit a public records request to the respective city’s Public Records Office or City Clerk’s Office. Conflict-of-Interest Policy The federal government’s general rule is that no persons who exercise or have exercised any functions or responsibilities are in a position a in to participate who with respect activities, HOME or to CDBG or decision-making process or gain inside information with regard to such activities, may obtain a financial interest have a financial contract, in any interest or assisted activity, CDBG/HOME from a benefit or subcontract, or agreement with respect to a CDBG/ HOME assisted activity, or with respect to the proceeds of or business have they with those or whom for either activity, assisted CDBG/HOME the themselves immediate family ties, during their tenure or for one year thereafter. If a member of any of the three city council members or advisory committees or staff member has a conflict of interest with a proposed project or an approved project, they will notify the respective city of the conflict of interest and the specifics of the conflict. recuse will interest of a the individual minimum, At themselves with the conflict during any discussions or actions concerning that project and will refrain from any discussions concerning the project or the project’s host organization with all board members. Other actions may be necessary depending upon Amendments or Substantial Amendments to the Plan Page 75 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 7 of 8 the nature of the conflict-of-interest situation. Each department will review, and research all reported conflicts and will advise the city of appropriate actions in each case. Staff Support and Technical Assistance from Staff access provide to effort reasonable make every will and be responsible will city each and technical assistance to citizens, and agencies representing low- and moderate-income people, in order that they may participate in the planning process. Staff from each city will also respond to those who request assistance in developing proposals for CDBG or HOME funding and will provide technical assistance to assist in the implementation of the project. Relocation and Displacement Policy The Cities the possible, extent the to greatest intend to Richland Pasco and Kennewick, of minimize permanent displacement of any low and moderate-income person that might result from the use of CDBG or evaluation potential for each project of and funds. be achieved will This HOME through the design displacement, by measuring and comparing such potential among alternative proposals and designs, and by considering alternatives when selecting projects for funding, prior to a final commitment of funds. organizations nonprofit or families, individuals, businesses, directly to no intent there is While displace because of projects, the respective City will assist any individual, family, business, or nonprofit organization displaced authorized under as funds HOME funded with CDBG projects by the Uniform Relocation or Assistance and Real Property Acquisition Policies Act of 1970, as amended, or under Section 104(d) of the Housing and Community Development Act of 1974. The Cities reserve the right to reject a project or require that any sub-recipient provide non-federal financial relocation assistance to people or organizations affected by the project, if the project causes permanent displacement. Page 76 of 160 Tri-Cities HOME Consortium Citizen Participation Plan-Updated (09/26/2025) Page 8 of 8 Availability of Documents Citizens are encouraged to review draft plans on the respective City’s website and at the following locations: Richland https://www.ci.richland.wa.us/CDBG • Richland City Hall, 625 Swift Blvd. • Richland Public Library, 955 Northgate Dr. • Richland Community Center, 500 Amon Park Dr. Kennewick https://www.go2kennewick.com/620/Community-Development-Block-Grant • City of Kennewick City Hall, Community Planning Department, 210 W. 6th Ave. • Mid-Columbia Library, 1620 S. Union and 405 S. Dayton St. • Kennewick Housing Authority, 1915 W. 4th Pl. Pasco https://www.pasco-wa.gov/188/Five-Year-Consolidated-Plan • City of Pasco, Community and Economic Development Department, 525 N. 3rd Ave. • Pasco Public Library, 1320 W. Hopkins St. • Pasco and Franklin County Housing Authority, 2505 W. Lewis St. Approved plans will be available on the respective City’s website. The City of Pasco will make documents available at the city office in addition to its website. Given non to accessible format a in copies electronic individual, notice, working three or days’ - English-speaking persons and persons with disabilities will be made available by calling, emailing or visiting the respective Member City’s Office during regular business hours. Page 77 of 160 Memo Updates to the Tri-Cities HOME Consortium Citizen Participation Plan (CPP) September 26, 2025 Overview The following is a summary of the primary updates made to the CPP to comply with HUD requirements at 24 CFR Part 91.105: • COVID-19 language was removed, including references to the Mega waiver (previously located on pages 1-2). • Added language concerning the approval process and implementation of the CPP (Page 1). • Added contingency language under the public notice heading updated language to reflect the use of social media for public notification and outreach (Page 4). • Added a Conflict-of-Interest section (Page 6). • Updated the language for the substantial and minor amendments per 24 CFR 91.505(a) (Page 6). Additional updates were made to clarify the contact information for each respective city, including addresses and department information. Page 78 of 160 AGENDA REPORT FOR: City Council TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Maria Serra, Director Public Works SUBJECT: Public Hearing to Consider Lightspeed Networks Inc. Franchise Renewal (5 minutes) I. ATTACHMENT(S): Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT PUBLIC HEARING III. FISCAL IMPACT: Lightspeed Networks, Inc. has paid the franchise renewal fee of $1,000. IV. HISTORY AND FACTS BRIEF: Background Fiber optic cable is a telecommunications technology that uses strands of glass or plastic to transmit data as light signals. This technology allows for high- speed internet, phone service, and other data communications that support homes, businesses, schools, healthcare, and public safety operations. Pasco Municipal Code (PMC) provides for fiber optic franchises within Title 15 Telecommunications. Through a franchise agreement, the City may authorize a private provider to install and maintain fiber optic facilities within the public right-of-way, subject to City standards. Allowing access to the right-of-way supports expanded connectivity and economic development while ensuring infrastructure is installed, maintained, and regulated in a manner that protects public assets. A fiber optic franchise falls under the general provisions of PMC Chapter 15.40 and does not qualify as either a cable system franchise, which would be covered by PMC Chapter 15.96, or a small cell system, covered under PMC Page 79 of 160 Section 15.40.050 and related provisions. Lightspeed Networks, Inc has requested a renewal of their franchise for fiber optic communication facilities within the public right-of-way. This renewal of franchise agreement requires a public hearing in accordance with PMC Subsection 15.20.080(2). Impact (other than fiscal) enhances right-of-way public the infrastructure optic fiber Allowing within broadband access and reliability for residents and businesses. The franchise requires the provider to obtain permits for construction, installation, maintenance, repair, or removal of facilities, ensuring City oversight and protection of public infrastructure. V. DISCUSSION: Recommendation Conduct the Public Hearing. Constraints (time or other consideration) The franchise process is following the process outlined in PMC 15.40. Next Steps Adopt the Ordinance granting the franchise at the September 8, 2026, Regular Council Meeting. Alternatives Council may choose whether or not to move forward with the franchise after the public hearing. Page 80 of 160 Ordinance – Lightspeed Networks Franchise - 1 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, APPROVING A NON-EXCLUSIVE FRANCHISE TO CONSTRUCT, INSTALL, OPERATE, MAINTAIN, REPAIR, OR REMOVE FIBER OPTIC CABLES WITHIN THE PUBLIC WAYS OF THE CITY OF PASCO WHEREAS, RCW 35A.11.010 grants the City authority to regulate the use of the public rights-of-way, subject to applicable state and federal law; and WHEREAS, the Pasco City Council passed Pasco City Ordinance 1823 on August 3, 1976, adopting the classification of non-chartered code city for the City of Pasco; and WHEREAS, Article 11, section 11, of the Washington State Constitution provides that the City of Pasco may make and enforce within its limits all such local police, sanitary and other regulations as are not in conflict with general laws; and WHEREAS, the Pasco City Council, by section 35A.11.020 of the Revised Code of Washington, of 35A.13.230 section through hasWashington, of Code the Revised any authority ever given to any class of municipality or to all municipalities of this state, and all powers possible for a city or town to thehave under Constitution of this state, and not specifically denied to code cities by law, which may be exercised in regard to the regulation or use of public ways and property of all kinds and improvements thereto; and WHEREAS, the Pasco City Council enacted chapter 15.40 of the Pasco Municipal Code by Ordinance 3287 on March 3, 1998, regulating the use of public ways and public property for placement of telecommunication facilities in public ways, and, providing in part that facilities must be located underground unless otherwise provided in a franchise or lease granted by the City; and WHEREAS, the Pasco City Council passed Ordinance 4414 on January 7, 2019 adopting amendments to its local telecommunications regulations in chapters 15.40, 15.60, 15.10.050 of the Pasco Municipal Code; and WHEREAS, Section 35A.47.040 of the Revised Code of Washington authorizes the City to grant, permit, and regulate non-exclusive franchises for the use of public ways; WHEREAS, the Pasco City Council passed City Ordinance 4537 on June 7, 2021, adopting an updated comprehensive plan for the City of Pasco, including without limitation, policies requiring underground installation of new utility services, conversion of existing overhead systems to underground systems, coordination of utility projects, and minimization of negative impacts upon the character of the community, and policies recognizing, preserving and protecting Pasco's urban forest; and WHEREAS, Franchisee has applied to the City of Pasco, Washington for non-exclusive franchise to enter, occupy, and use public ways to construct, install, operate, Page 81 of 160 Ordinance – Lightspeed Networks Franchise - 2 maintain, and repair fiber optic facilities to offer and provide telecommunications service for hire, sale, or resale in the City of Pasco; and WHEREAS, the 1934 Communications Act, as amended by the 1996 Telecommunications Act, 47 USC 151, et seq., relating to telecommunications providers recognizes and provides state and local government certain authority to manage the public rights-of-way and to require fair and reasonable compensation on a competitively neutral and nondiscriminatory basis; and WHEREAS, Washington's Telecommunications Services Act, 2000 Wash. Laws, C providers telecommunications to relating Ch. 35.99, amended, as 83, hapter RCW recognizes and provides Washington cities authority to require franchises and use permits for constructing, installing, operating, maintaining, repairing, or removing telecommunication facilities in public rights-of-way; and WHEREAS, a franchise is granting general permit master approved a legislatively permission to a service provider to enter, use, and occupy the public ways for the purpose of locating facilities subject to requirements that a Franchisee must also obtain separate use permits from the City for use of each and every specific location in the public ways in which the Franchisee intends to construct, install, operate, maintain, repair or remove identified facilities; and WHEREAS, a franchise does not include, and is not a substitute for any other permit, agreement, or other authorization required by the City, including without limitation, permits required in connection with construction activities in public ways which must be administratively approved by the City after review of specific plans; and WHEREAS, the grant of a non-exclusive franchise under RCW 35A.47.040 shall not be adopted or passed by the City’s legislative body on the day of its introduction nor for five days thereafter, nor at any other than a regular meeting, nor without first being submitted to the City attorney, an affirmative vote of at least a majority of the entire City Council and publication at least once in newspaper of general circulation before becoming effective; and WHEREAS, the City Council finds that the franchise terms and conditions contained in this ordinance are in the public interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1: Definitions. For the purposes of this Ordinance, the following terms, phrases, words, and their derivations will have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. in the words meaning ascribed to those the Words defined will not Pasco have Municipal Code unless inconsistent herewith. Page 82 of 160 Ordinance – Lightspeed Networks Franchise - 3 "Cable Service" has the meaning set forth in, 47 U.S.C. § 522(6). "City" has the meaning set forth in PMC 15.10.020 "City Property" has the meaning set forth in PMC 15.10.020 "Conduit" means optical cable housing, jackets, or casing, and pipes, tubes, or tiles used for receiving and protecting wires, lines, cables, and communication and signal lines. "Costs" means costs, expenses, and other financial obligations of any kind whatsoever. “Days” means calendar days when the reference is to more than 10 Days, and business days when the reference is to 10 days or less. "Effective Date" means five days following the publication of this Franchise or a summary thereof occurs in an official newspaper of the City as provided by law. "Emergency" has the meaning set forth in PMC 15.10.020. "Existing" means in actual physical being upon the effective date of this Franchise, or a repair or replacement of such physical being. "Facilities" means all of the plant, equipment, fixtures, appurtenances, and other facilities necessary to furnish and deliver telecommunications services, including but not limited to poles with crossarms, poles without crossarms, wires, lines, conduits, cables, communication and signal attachments, and vaults, anchors, all braces, equipment, and lines guys, appurtenances, and appliances necessary or incidental to the distribution and use of telecommunications services. "Fiber Optics" has the meaning set forth in PMC 15.10.020. "Franchisee" means Lightspeed Networks, Inc. and the lawful successor, transferee or assignee of said person subject to such conditions as defined herein. "Information" means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols. repairing, “Maintenance” or “Maintain” shall mean examining, testing, inspecting, maintaining and replacing the existing Franchisee Facilities or any part thereof as required and necessary for safe operation. "Municipal Arborist" means the City's director of parks and recreation, or such other person appointed by the Pasco City Manager to carry out the provisions of the Pasco Municipal Code. "Optical Cable" means wires, lines, cables and communication and signal lines used to convey communications by fiber optics. Page 83 of 160 Ordinance – Lightspeed Networks Franchise - 4 "Overhead Facilities" has the meaning set forth in PMC 15.10.020 “PMC” means the Pasco Municipal Code. "Person" has the meaning set forth in PMC 15.10.020 "Personal Wireless Services" means commercial mobile radio services as defined by federal laws and regulations. "Public Street" has the meaning set forth in PMC 15.10.020 "Public Way" has the meaning set forth in PMC 15.10.020. “Relocation” means permanent movement of Franchisee facilities required by the City, and not temporary or incidental movement of such facilities, or other revisions Franchisee would accomplish and charge to third parties without regard to municipal request. "Relocation” also means to protect, support, temporarily disconnect, relocate, or remove facilities. “Right-of-Way” has the meaning set forth in PMC 15.10.020. “Standards” means the Design and Construction Standards and Specifications for Public Works Improvements, latest edition at the time of submission of each right-of-way permit associated with this Franchise Agreement. "Street Tree" means any tree located in, or that portion over-hanging, any public way and any tree planted on private property near a public way at the direction of the City. "Telecommunications Service" has the meaning set forth in 47 U.S.C. Section 153(53). "State" means the State of Washington, its agencies, departments, and governmental subdivisions, and all agencies, departments, and divisions of its agencies, departments, and governmental subdivisions. "Underground Facilities" has the meaning set forth in PMC 15.10.020 "Utility Poles" has the meaning set forth in PMC 15.10.020. Section 2: Franchise. A. The City grants to Franchisee, subject to the terms and conditions of this Franchise, a non-exclusive to Franchise for ways public and use enter, occupy, constructing, installing, operating, maintaining, repairing, and removing wireline facilities necessary to provide corporate the telecommunications services, on property located within boundaries of the City of Pasco, as specified in Exhibit A hereto , attached and incorporated by reference (the “Franchise Area”), provided that the Franchise Area shall Page 84 of 160 Ordinance – Lightspeed Networks Franchise - 5 be expanded to include territory annexed into the City of Pasco during the term hereof, and as approved under City permits issued pursuant to this Franchise (hereinafter “Franchise”). Except as expressly provided otherwise in this Franchise, Franchisee shall construct, install, operate, maintain, repair, and remove its facilities at its expense. B. be times all shall Area Franchise of at its that agrees Franchisee The use subordinated to and subject to the City and the public’s need for municipal infrastructure, travel, and access to the Franchise Area, except as may be otherwise required by law. C. The Franchisee shall reimburse the City for all costs of one publication of this Franchise Franchise, this regarding notices legal newspaper and local a in required contemporaneous with its acceptance of this Franchise. D. As set forth PMC 15.30.010, Franchisee must first obtain a right-of-way use permit in the event it desires to occupy Public Ways. Nothing contained herein shall relieve Franchisee from the requirement for obtaining permits as more fully set forth in Section 12 below. E. Nothing in this Franchise grants authority to Franchisee to enter, occupy, or use public ways for constructing, installing, operating, maintaining, repairing or removing wireless communication facilities. F. Nothing in this Franchise grants authority to Franchisee to enter, occupy, or use City Property. If Franchisee desires to use City poles including Property, and structures within the public ways it shall negotiate a separate lease or license agreement with the City. G. Any rights, privileges, and authority granted to Franchisee under this Franchise are subject to the legitimate rights of the police power of the City to adopt and enforce general ordinances necessary to protect the safety and welfare of the public, and nothing in this Franchise excuses Franchisee from its obligation to comply with all applicable general laws to City the enacted by pursuant such power. terms the conflict between Any or conditions of this Franchise and any other present or future exercise of the City's police powers will be resolved in favor of the exercise of the City's police power. H. obligationits of Franchise excuses this in Nothing Franchisee comply with to applicable codes, rules, regulations, and standards subject to verification by the City of such compliance. I. other Nothing in this Franchise shall be construed to limit taxing authority or lawful authority to impose charges or fees, or to excuse Franchisee of any obligation to pay lawfully imposed taxes, charges or fees. J. Nothing in this Franchise grants authority to Franchisee to impair or damage any City Property, Public Way, other ways or other property, whether publicly or privately owned, except as provided herein. Page 85 of 160 Ordinance – Lightspeed Networks Franchise - 6 K. Nothing in this Franchise grants authority to Franchisee to alter the City's urban forest to accommodate Franchisee's Facilities, and nothing in this Franchise shall be construed to give Franchisee's Facilities priority of use of public ways over the preservation and protection of the City's urban forest. L. beshall this in Franchise Nothing construed to create a upon the City to be duty responsible for construction of facilities or to modify public ways to accommodate the Franchisee’s Facilities. M. Nothing in this Franchise grants authority to Franchisee to provide or offer Cable Service. N. Nothing in this Franchise grants authority to Franchisee to provide or offer personal wireless services to the general public. O. Nothing in this Franchise shall be construed to create, expand, or extend any liability of the City to any third-party user of Franchisee's Facilities or to otherwise recognize or create third party beneficiaries to this Franchise. P. Nothing in this Franchise shall be construed to permit Franchisee to unlawfully enter or construct improvements upon the property or premises of another. Q. Nothing in this Franchise authorizes Franchisee to enter or construct improvements on, in, under, over, across, or within any private property of any third party without that party's permission. Section 3: Term. A. Authorization granted under this Franchise shall be for a period of ten (10) years from the effective date of this Franchise. B. Renewal. Franchisee may renew this Franchise pursuant to PMC 15.020.070(1). C. Failure to Renew Franchise – Automatic Extension. If the parties fail to formally renew this Franchise prior to the expiration of its term, the Franchise automatically continues month to month until renewed or until either party gives written notice at least one hundred eighty (180) days in advance of its intent not to renew the Franchise to the other party. Section 4: Location of Facilities. A. Franchisee may place optical cable, optical cable housing, and splicing connections on Existing utility poles as overhead facilities if approved by the owner of the utility poles as well as place the same underground in accordance with the provisions of PMC 15.70.110. Page 86 of 160 Ordinance – Lightspeed Networks Franchise - 7 B. Franchisee's Facilities shall not damage or impair the City's urban forest. Franchisee shall not place optical cable, optical cable housing, or splicing connections as overhead facilities in any area where the municipal arborist of the City determines, in his or her sole discretion, that the facilities will damage or impair a street tree. C. Franchisee's facilities shall not unreasonably interfere with the use of public ways or City property by the City, the general public, or other persons authorized to enter, occupy, or use public ways or City property as set forth in PMC 15.70.160. D. Franchisee shall not impair or damage any City property, public way, other ways or other property, whether publicly or privately owned. E. Relocation or removal of Franchisee’s facilities shall be governed by PMC 15.70.180. 1. Where the construction, alteration, repair or improvement of a Public Way is primarily for private benefit, the Franchisee may seek reimbursement from the private party or parties for the cost of relocation in the same proportion as their contribution to the costs of the project; provided, however, in no event shall the City be considered a private party for purposes of seeking reimbursement under this section. Franchisee may require a deposit or other pre-payment of costs before doing any work on a project covered by this section. 2. Where other utilities are present and involved in an undergrounding project and Franchisee is required to pay for such undergrounding, Franchisee shall only be required to costs the to addition in by borne all utilities, common costs of share fair its pay specifically attributable to the undergrounding of Franchisee Facilities. Common costs shall include necessary costs for common trenching and utility vaults. Fair share shall be determined in comparison to the total number and size of all other utility facilities being undergrounded. 3. If the City requires Franchisee to relocate the same Facilities in the same location that were previously relocated at Franchisee’s expense at the City’s direction, and the City requires such subsequent relocation within five (5) years after completion of the prior relocation, the City shall bear the full cost of the subsequent relocation; provided, that this subsection shall not apply where the subsequent relocation is necessitated by the act or omission of Franchisee. F. Franchisee shall relocate its facilities at its expense at the request of the City in the event of an unforeseen emergency or causes interference with public facilities as described in Section 4(C) that creates an immediate threat to the public safety, health or welfare. Section 5: Pole, Structures and Property Owned By Others. Franchisee will obtain separate agreements from owners of utility poles, structures and property not owned by the City. The City makes no representation and assumes no responsibility for the availability of utility poles, structures, and property owned by third parties for the installation of Franchisee’s facilities. Page 87 of 160 Ordinance – Lightspeed Networks Franchise - 8 Section 6: Construction and I nstallation Requirements. A. Neither approval of plans by the City nor any action or inaction by the City shall relieve Franchisee of any duty, obligation, or responsibility for the competent design, construction, and installation of its Facilities. Franchisee is solely responsible for the supervision, condition, and quality of the work done, whether it is performed by itself or by its contractors, agents, or assigns. B. The Franchisee shall provide the City at least 72-hours’ notice of its intent to work in the public right-of-way and, for permits relating to underground work, shall indicate the issued permit for the work planned to be performed. C. Working Hours. All work related to this Franchise Agreement (with the exception of only Franchisee shall the by performed occur this in described repairs emergency agreement) Monday through Saturday and no work will be performed on Sunday’s or holidays recognized by the City of Pasco unless otherwise agreed by the City. Such restriction shall not apply to any service drops used in connecting subscribers to Franchisee’s Facilities. D. Dangerous Conditions. Franchisee shall comply with PMC 15.70.280. E. Utility Locates. Franchisee shall comply with PMC 15.70.080. F. Qualified, Informed Personnel. The Franchisee shall have qualified, informed personnel onsite anytime construction is occurring that are familiar with the permit requirements, and the City requirements for construction. G. Licensed, Bonded Contractors. All work performed by the Franchisee shall be performed by licensed, bonded Contractors who have a business license allowing them to work within the City of Pasco. H. Contractor named on Right-of-Way Permit. The Franchisee shall specifically name the Contractor who will be performing work on the right-of-way permit application. If the Franchisee desires to switch to using another contractor on an open right-of-way permit, the Franchisee shall so notify the City. I. Sidewalk Safety. At times, weather is not conducive to concrete placement, which can delay surface restoration work if concrete sidewalk panels or curb ramps were removed as part of a construction project. When this occurs, the Franchisee shall use either 5/8 crushed rock or cold patch asphalt (temporary surface type is at the discretion of the City) to maintain a safe, ADA accessible walking surface until the site can be adequately restored. J. Contact Emergency Local an maintain shall at all times Franchisee . emergency The contact at its Network Operations Center who can be contacted by the City if there is an emergency, or an issue with lack of compliance with the terms of this Franchise Agreement. This emergency contact shall be available as needed 7 days a week, 24 hours a day. Page 88 of 160 Ordinance – Lightspeed Networks Franchise - 9 Section 7: Coordination of Construction and Installation Activities and Other Work. A. Franchisee shall coordinate its construction and installation activities and other work with the City and other users of the public ways at least annually or as determined by the City. B. All construction or installation locations, activities and schedules shall be coordinated, as ordered by the City, to minimize public inconvenience, disruption or damages. C. At least twenty-four hours prior to entering a public way to perform construction and installation activities or other work, Franchisee shall give notice, at its cost, to owners and occupiers of property adjacent to such public ways indicating the nature and location of the work to be performed. Such notice shall be physically posted by door hanger. Franchisee shall make a good faith effort to comply with the property owner or occupier's preferences, if any, on facilities, underground placement or location of with sound consistent engineering practices. D. Franchisee shall make available open trenches for use by third party utilities with the costs to be allocated as agreed between the parties provided that such third party has a similar obligation with respect to Franchisee. E. The City shall give reasonable advance notice to Franchisee of plans to open Public Ways for construction or installation of Facilities and Franchisee afforded the opportunity to install facilities in the applicable location, when possible; provided, however, the City shall not be liable for damages for failure to provide such notice. When notice has been given, Franchisee may provide notice to City of its intent to construct in the open Public Way and provide so elected, If such constructions. requirements information regarding its for Franchisee may only construct or install facilities during such period that the City has opened the Public Way for construction or installation. F. Emergency Operations. Franchisee shall comply with PMC 15.70.250. Section 8: Temporary Removal, Adjustment or Alteration of Facilities. See Section 4 above. Section 9: Safety and Maintenance Requirements. Franchisee shall comply with PMC 15.70.280. Section 10: Abandonment of Facilities. PMC 15.70.260(1) shall govern the abandonment of facilities. Section 11: Restoration of Public Ways and Other Property. Page 89 of 160 Ordinance – Lightspeed Networks Franchise - 10 A. When Franchisee, or any person acting on its behalf, does any work in or affecting any Public Way or other property, it shall, at its own expense, promptly remove any obstructions therefrom and restore, at Franchisee's cost, such ways and property to as good a condition as existed before the work was undertaken, unless otherwise directed by the City. Upon completion of any construction by the Franchisee, the site of construction shall be restored in accordance with all the requirements in the PMCs and the City’s Standards, including but not limited PMC 15.70.270. B. If weather or other conditions do not permit the complete restoration required by this section; Such property. or ways affected shall temporarily restore Franchisee the the temporary restoration shall be at the Franchisee's cost, and Franchisee shall promptly undertake and complete the required permanent restoration when the weather or other conditions no longer prevent such permanent restoration. C. All restoration work is subject to inspection and final approval by the City. If restoration is not made to the satisfaction of the City within the established time frame, the City may make the restoration itself at the cost of Franchisee or have them made at the cost of Franchisee. Section 12: Use and/or Development Authorization and Permits. A. Franchisee useshall obtain and/or authorization permitsdevelopment and required from the City and all other appropriate regulatory authorities prior to constructing or installing facilities or performing other work in a public way. The City must act on applications for use and/or development authorization or required permits within thirty (30) consents Franchisee completed application, unless a to a receipt of days of different time period. The City may, upon notice to Franchisee, extend this period to ensure that the City has adequate resources available to provide the necessary inspection work. Franchisee agrees to reimburse the City for any additional costs required to provide inspections for work performed by the Franchisee after-hours and on weekends. B. and construction bond. Any such requirement a posting of require may permit A the amount of the bond is set forth in City code. Section 13: Hold Harmless and Assumption o f Risk. The Franchisee agrees to be bound by the provisions of PMC 15.70.290(2) which are hereby incorporated into this Franchise. Section 14: Insurance. Franchisee shall obtain and maintain, at its cost, worker's compensation insurance and the following liability insurance policies insuring both Franchisee and the City, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as an additional insureds against claims for injuries to persons or damages to Page 90 of 160 Ordinance – Lightspeed Networks Franchise - 11 property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to Franchisee: A. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop gap liability, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the Franchisee's Commercial General Liability insurance policy with respect the 20 12 05 09 if CG endorsement ISO using Agreement Franchise this Franchise Agreement is considered a master permit, or CG 20 26 07 04 if it is not, or substitute endorsement providing at least as broad coverage. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. B. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be at least as broad as Insurance Services Office (ISO) form CA 00 01. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. C. Contractors Pollution Liability insurance shall be in effect throughout the entire Franchise the from arise that conditions pollution by caused covering losses Agreement bodily injury, cover Pollution Contractors Liability shall the of operations Franchisee. property damage, cleanup costs and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims. Contractors Pollution Liability insurance shall be written in an amount of at least $1,000,000 per loss, with an annual aggregate of at least $1,000,000. D. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. E. Excess or Umbrella Liability insurance shall be excess over and at least as broad in coverage as the Franchisee's Commercial General Liability and Automobile Liability insurance. Excess or Umbrella Liability insurance shall be written with limits of not less than $5,000,000 per occurrence and annual aggregate. The Excess or Umbrella Liability requirement and limits may be satisfied instead through Franchisee's Commercial General Liability and Automobile Liability insurance, or any combination thereof that achieves the overall required limits. F. Other Insurance Provisions. Franchisee's Commercial General Liability, Automobile Liability, Excess or Umbrella Liability, Contractors Pollution Liability insurance policy or Page 91 of 160 Ordinance – Lightspeed Networks Franchise - 12 policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Franchisee's insurance and shall not contribute with it. G. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: Vil. H. Verification of Coverage. The Franchisee shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the ofrequirements insurance additional endorsement, insured evidencing the the Franchise. Upon request by the City, the Franchisee shall certifiedfurnish copies of all required insurance policies, including endorsements, required in this Franchise and evidence of all subcontractors' coverage. I. Subcontractors. The Franchisee shall cause each and every Subcontractor to provide insurance coverage that complies with all applicable requirements of the Franchisee-provided insurance as set forth herein, except the Franchisee shall have sole responsibility for determining the limits of coverage required to be obtained by Subcontractors. The Franchisee shall ensure that the City is an additional insured on each and every Subcontractor's Commercial General liability insurance policy using an endorsement as least as broad as ISO CG 2026. J. Cancellation. The Franchisee’s insurance cannot be terminated by the Franchisee except after thirty (30) days’ prior written notice to the City by certified mail, return receipt requested, has been given to the City. K. Failure to Maintain Insurance. Failure on the part of the Franchisee to maintain the insurance as required shall constitute a material breach of this Franchise, upon which the City may, after giving five business days' notice to the Franchisee to correct the breach, terminate the Franchise or, at its discretion, procure or renew such insurance all and any and pay premiums in connection therewith, with any sums so expended to be repaid to the City on demand. L. City Full Availability of Franchisee Limits. If the Franchisee maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Franchisee, irrespective of whether such limits maintained by the Franchisee are greater than those required by this Franchise or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Franchisee. M. Franchisee - Self-Insurance. If the Franchisee is self-insured or becomes self-insured during the term of the Franchise Agreement, Franchisee or its affiliated parent entity shall comply with the following: (i) provide the City, upon request, a copy of Franchisee's or its parent company's most recent audited financial statements, if such financial statements are not otherwise publicly available; (ii) Franchisee or its parent company is responsible for all Page 92 of 160 Ordinance – Lightspeed Networks Franchise - 13 payments within the self-insured retention; and (iii) Franchisee assumes all defense and indemnity obligations as outlined in the indemnification section of this Franchise Agreement. N. Primary Insurance. The Franchisee’s insurance coverage shall be primary insurance as respects the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Franchisee’s insurance and shall not contribute with it. O. Coverage Scope. The coverage shall contain no special imitations on the scope of protection afforded to the City, its officers, officials, or employees. In addition, the insurance policy insureach to separately apply shall coverage stating that clause a contain shall ed against whose claim is made or suit is brought, except with respect to the limits of the insurer’s liability. Franchisee’s insurance shall be primary. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Franchisee’s insurance, and shall not contribute with it. Coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits for the duration of this Franchise Agreement. Section 15: Performance Bond. A. Franchisee shall provide a performance bond in the amount of fifty thousand dollars and Franchise this under responsibilities its of performance faithful the to ensure ($50,000) applicable law, including, by way of example and not limitation, its obligations to relocate and remove its facilities. The performance bond shall be in a standard industry form. Grantee shall pay all premiums or costs associated with maintaining the bond, and shall keep the same in full force and effect at all times. B. The bond shall not be canceled or materially altered so as to be out of compliance with the requirements of this Section without forty-five (45) days written notice first being given to the City. be ou to as so altered materially or canceled is the bond If the with compliance t of requirements of this Section within the term of this Franchise, Franchisee shall provide a replacement bond. C. After the giving of notice by the City to Franchisee, and expiration of any applicable cure period, the performance bond may be drawn upon by the City for purposes that include, but are not limited to the following: 1. Failure of Franchisee to pay the City sums due under the terms of this Franchise; 2. Reimbursement of costs borne by the City to correct Franchise violations not corrected by Franchisee; and 3. Damages assessed against Franchisee as provided in this Franchise. D. The City shall give Franchisee written notice of any withdrawal under this Section upon such withdrawal. Within ten (l0) days following receipt of such notice, Franchisee shall restore and replenish the performance bond to the amount required under this Franchise. Franchisee’s Page 93 of 160 Ordinance – Lightspeed Networks Franchise - 14 maintenance of the performance bond shall not be construed to excuse unfaithful performance by Franchisee or limit the liability of Franchisee to the amount of the performance bond or otherwise limit the City’s recourse to any other remedy available at law or in equity. E. Franchisee shall have the right to appeal to the City Council for reimbursement in the event Franchisee believes that the performance bond was drawn upon improperly. After a determination by the City Council, Franchisee shall also have the right of judicial appeal if Franchisee believes the performance bond has not been properly drawn upon in accordance with this Franchise. Any funds the City erroneously or wrongfully withdraws from the performance bond shall be returned to Franchisee with interest, from the date of withdrawal at a rate equal to the prime rate of interest as quoted in The Wall Street Journal on the date the City withdrew funds from the performance bond until the date the City returns the funds to Franchisee. Section 16: Taxes, Charges, And Fees. Franchisee shall pay and be responsible for taxes permitted by law. Section 17: Acquisition of Facilities. Upon Franchisee's acquisition of any facilities in the Public Way, or upon any addition or annexation shall facilities such has Franchisee facilities, area in any of the City to which immediately be subject to the terms of this Franchise without further action of the City or Franchisee. Section 18: Vacation of Public Ways. The City reserves the right to change, regrade, relocate, abandon, or vacate any right-of- way within the Franchise Area. If, at any time during the term of this Franchise, the City vacates any portion of the Franchise Area containing Franchisee Facilities, the City shall reserve vacated portion, RCW to pursuant that public utilities for an easement within 35.79.030 and PMC 12.40, within which the Franchisee may continue to operate any existing Franchisee Facilities under the terms of this Franchise for the remaining period set forth under Section 3. Section 19: Provision of Information. Within thirty (30) days of a written request from the City, Franchisee shall furnish the City with information reasonably requested by the City to coordinate municipal functions with Franchisee’s activities, to fulfill municipal obligations under State law or to demonstrate compliance with terms of this Franchise. A. The documents and records maintained by Franchisee and requested by the City shall be made available to the City at reasonable times and intervals; provided, however, that nothing in this section shall be construed to require Franchisee to violate state or federal law regarding subscriber privacy, nor shall this section be construed to require Franchisee Page 94 of 160 Ordinance – Lightspeed Networks Franchise - 15 to disclose proprietary or confidential information without adequate safeguards for its confidential or proprietary nature. B. Franchisee shall reasonably cooperate in City’s planning efforts, including working with the City in its development of its Comprehensive Plan Utilities Element. The cooperation may include: 1. An annual meeting or communications outlining the plans of Franchisee and the City for the Public Ways during the upcoming year. 2. Coordination of construction activities with the City and other franchisees. 3. Planning and implementation of emergency response procedures. C. In connection with information requests mentioned above, the City may request as-built drawings of Franchisee’s Facilities and maps showing the location of existing or planned facilities within the City. Said information may be requested either in hard copy or electronic format, in a format used by Franchisee in the maintenance of its own records. D. Confidentiality. Information provided by Franchisee to the City shall be considered confidential and proprietary to Franchisee. If the City receives a request under the Washington State Public Records Act to inspect or copy the information provided by Franchisee and the City determines that release of the information is required by the Public Records Act, the City notify Franchisee (a) the be released will information such to of (b) and the request of the date that requester unless Franchisee initiates a proceeding to enjoin that disclosure pursuant to the Public Records Act. Section 20: Assignment or Transfer. and ownership or this and authority under franchise, rights, Franchisee's privileges, working control of facilities constructed or installed pursuant to this Franchise, may not, directly or indirectly, be transferred, assigned or disposed of by sale, lease, merger, consolidation or other act of Franchisee, by operation of law or otherwise, except after consent by the City, which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, no City consent shall be required in the event that this Franchise is, directly or indirectly, transferred assigned or disposed by sale, lease, merger consolidation of other act of Franchisee, by operation of law or otherwise, in connection with any transaction approved by the and Transportation Washington Utilities Commission, such approval to be deemed consent of the City. Except as set forth above, PMC 15.70.320 shall apply to this Franchise. Section 21: Notices. A. Written notices to the parties shall be sent by certified mail to the following addresses, unless a different address shall be designated in writing and delivered to the other party. Page 95 of 160 Ordinance – Lightspeed Networks Franchise - 16 City: City of Pasco Public Works Department 525 N. 3rd Avenue Pasco, WA 99301 (509) 545-3463 with a copy to: Pasco City Clerk 525 N. 3rd Avenue Pasco, WA 99301 Franchisee: Lightspeed Networks, Inc. Contracts Manager 921 SW Washington St, Suite 210 Portland, OR 97205 contracts@lsnetworks.net 503-294-5300 Franchisee’s Local Contact for Emergency Situations or Franchise compliance issues requiring immediate attention: Lightspeed Networks, Inc Regional Manager 1600 E Salt Lake St, Pasco, WA 99301 support@lsnetworks.net 866-366-2638 (24/7 NOC) B. Franchisee shall additionally provide a phone number and designated responsible officials to respond to emergencies. After being notified of an emergency, Franchisee shall cooperate with the City and make best efforts to immediately respond to minimize damage, protect the health safety of the public and repair facilities to restore them to proper working order. Annually, on request of the City, Franchisee will meet with City emergency response personnel to coordinate emergency management operations and, at least once a year, at the request of the City, actively participate in emergency preparations. C. Any changes to the above-stated Franchisee information shall be sent to the City’s Director of Community & Economic Development Department, with copies to the City Clerk, referencing the title of this agreement. D. The above-stated Franchisee and City telephone numbers shall be staffed at least during normal business hours, Pacific time zone, notwithstanding the requirements of the Local Emergency Contact provisions pursuant to Section 6(J). Page 96 of 160 Ordinance – Lightspeed Networks Franchise - 17 Section 22: Non-waiver. The failure of the City to exercise any rights or remedies under this Franchise or to insist upon compliance with any terms or conditions of this Franchise shall not be a waiver of any such rights, remedies, terms or conditions of this Franchise by the City and shall not prevent the City from demanding compliance with such terms or conditions at any future time or pursuing its rights or remedies. Section 23: Eminent Domain. This Franchise is subject to the power of eminent domain and the right of the City Council to repeal, amend or modify the Franchise in the interest of the public. In any proceeding under eminent domain, the Franchise itself shall have no value. Page 97 of 160 Ordinance – Lightspeed Networks Franchise - 18 Section 24: Limitation of Liability. Administration of this Franchise may not be construed to create the basis for any liability on the its City, the of part and agents, servant, employees, officers, officials, elected representatives for any injury or damage from the failure of the Franchisee to comply with the provisions ofFranchise; this of by reason or schedule any plan, specification review, inspection, notice and order, permission, or other approval or consent by the City; for any action or inaction thereof authorized or done in connection with the implementation or enforcement of this Franchise by the City; or for the accuracy of plans submitted to the City. Section 25: Damage to Facilities. Unless directly and proximately caused by the negligence of the City, the City shall not be liable for any damage to or loss of any facilities as a result of or in connection with any public works, public improvements, construction, excavation, grading, filling, or work of any kind on, in, under, over, across, or within a public way done by or on behalf of the City. Section 26: Governing Law and Venue. This Franchise and use of the applicable public ways will be governed by the laws of the State of Washington, unless preempted by federal law. Franchisee agrees to be bound by the laws of the State of Washington, unless preempted by federal law, and subjected to the jurisdiction of the Courts of the State of Washington. Any action relating to this Franchise must be brought in the Superior Court of Washington for Franklin County, or in the case of a federal action, the United States District Court for the Eastern District of Washington at Richland, Washington, unless an administrative agency has primary jurisdiction. Section 27: Severability. If any section, sentence, clause or phrase of this Franchise or its application to any person or entity should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality will not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Franchise nor its application to any other person or entity. Section 28: Repair and Emergency Work. The terms of PMC 15.70.250 are hereby incorporated into this Franchise. Section 29: Location Preference. a property of tangible utility, other equipment, appurtenance, Any structure, or than the Franchisee’s, which was installed, constructed, completed, in place, or planned for installation prior in time to Franchisee’s application for a permit to construct or repair Franchisee Facilities Page 98 of 160 Ordinance – Lightspeed Networks Franchise - 19 under this Franchise shall have preference as to positioning and location with respect to the Franchisee Facilities. The City reserves the right to deny of any of the Franchisee’s facilities that may possibly interfere with possible future installation of City utilities. However, to the extent that the Franchisee Facilities are completed and installed prior to another non-City utility’s submittal of a permit for new or additional structures, equipment, appurtenances, or tangible property, then the Franchisee infrastructure, road and utility whether All priority. shall have Facilities City existing or future shall have priority over the Franchisee’s. These rules governing preference shall continue in the event of the necessity of relocating or changing the grade of any City road or right- of-way. A relocating utility shall not necessitate the relocation of another utility that otherwise would not require relocation. This Section shall not apply to utilities that may in the future require the relocation of Franchisee Facilities. Such relocations shall be governed by Section 4. Franchisee shall comply with PMC 15.70.110. Section 30: Enforcement and Remedies. The terms of PMC 15.90.010-050 is hereby incorporated into this Franchise. Section 31: Compliance with Laws and Regulations. A. This Franchise is subject to, and the Franchisee shall comply with all applicable federal and state or City laws, regulations and policies (including all applicable elements of the City's comprehensive plan), in conformance with federal laws and regulations, affecting performance under this Franchise. Furthermore, notwithstanding any other terms of this agreement appearing to the contrary, the Franchisee shall be subject to the police power of the City to adopt and enforce general ordinances necessary to protect the safety and welfare of the general public in relation to the rights granted in the Franchise Area. Section 32: Consequential Damages Limitation. Notwithstanding any other provision of this Agreement, in no event shall the City or other utility providers any special, incidental, indirect, for be liable the exception of (with the Franchisee) punitive, reliance, consequential or similar damages. Section 33: Survival. All the provisions, conditions and requirements of this agreement shall be in addition to any and all other obligations and liabilities the Franchisee may have to the City at common law, by statute, or by contract, and shall survive the City’s Franchise to the Franchisee for the use of the areas mentioned herein, and provisions, conditions, any renewals or extensions thereof. All the regulations, and requirements contained in this Franchise Ordinance shall further be binding upon the heirs, successors, executors, administrators, legal representatives and assigns of the Franchisee and all privileges, as well as all obligations and liabilities of the Franchisee shall inure to its heirs, successors and assigns equally as if they were specifically mentioned wherever the Franchisee is named herein. Page 99 of 160 Ordinance – Lightspeed Networks Franchise - 20 Section 34: Miscellaneous. A. Equal Employment and Nondiscrimination. Throughout the term of this Franchise, Franchisee will fully comply with all equal employment and nondiscrimination provisions and requirements of federal, state, and local laws, and in particular, FCC rules and regulations relating thereto. B. Local Employment Efforts. Franchisee will use reasonable efforts to utilize qualified local contractors, including minority business enterprises and woman business enterprises, whenever the Franchisee employs contractors to perform work under this franchise. C. Descriptive Headings. The headings and titles of the sections and subsections of this Franchise are for reference purposes only and do not affect the meaning or interpretation of the text herein. D. Costs and Attorneys' Fees. If any action or suit arises in connection with this Franchise, the prevailing party will be entitled to recover all of its reasonable costs, including attorneys' fees, in addition to such other relief as the court may deem proper. E. VentureNo Joint . venture joint a deemed to create be or Nothing herein will principal-agent relationship between the parties, and neither party is authorized to, nor shall either party act toward third persons or the public in any manner that would indicate any such relationship with the other. F. Mutual Negotiation. This Franchise was mutually negotiated by the Franchisee and the City and has been reviewed by the legal counsel for both parties. Neither party will be deemed to be the drafter of this Franchise. G. Third-Party Beneficiaries. There are no third-party beneficiaries to this Franchise. H. Actions of the City or Franchisee. In performing their respective obligations under this Franchise, the City and Franchisee will act in a reasonable, expeditious, and timely manner. Whenever this Franchise sets forth a time for any act to be performed by Franchisee, such time shall be deemed to be of the essence, and any failure of Franchisee to perform within the allotted time may be considered a material breach of this Franchise, and sufficient grounds for the City to invoke any relevant remedy. I. Entire Agreement. This Franchise represents the entire understanding and agreement between the parties with respect to the subject matter and supersedes all prior oral and written negotiations between the parties. J. Modification. The parties may alter, amend or modify the terms and conditions of this Franchise alteration, such to parties upon written of agreement amendment both or Page 100 of 160 Ordinance – Lightspeed Networks Franchise - 21 modification. Nothing in this subsection shall impair the City's exercise of authority reserved to it under this Franchise. K. Non-exclusivity. This Franchise does not confer any exclusive right, privilege, or authority to enter, occupy or use public ways for delivery of telecommunications services or any other purposes. This Franchise is granted upon the express condition that it will not in any manner prevent the City from granting other or further franchises in, on, across, over, along, under or through any public way. L. Rights granted. This Franchise does not convey any right, title or interest in public ways, but shall be deemed only as authorization to enter, occupy, or use public ways for the limited purposes and term stated in this Franchise. Further, this Franchise shall not be construed as any warranty of title. M. Contractors and subcontractors. Franchisee's contractors and subcontractors must be licensed and bonded in accordance with the City's ordinances, rules, and regulations. Work by contractors and subcontractors is subject to the same restrictions, limitations and conditions as if the work were performed by Franchisee. N. Risks. Franchisee acknowledges by acceptance of the grant that it has read the terms and conditions of this agreement carefully, and accepts all reasonable risks related to the possible interpretation of the provisions, terms, and conditions of this agreement. Section 35: Acceptance of Franchise. Within thirty (30) days after the passage and approval of this ordinance, this Franchise may be accepted by the Franchisee by its filing with the City Clerk an unconditional written acceptance thereof. Failure of the Franchisee to accept this Franchise within said period of time shall be deemed a rejection thereof by the Franchisee, and the rights, privileges, and authority herein granted shall, after the expiration of the 30-day period, absolutely cease and terminate, unless the period is extended by ordinance duly passed for that purpose. Section 36: The City Clerk. The City Clerk is authorized and directed to publish a summary hereof in accordance with Revised Code of Washington 35A.13.200 and 35A.12.160. Section 37: Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance is 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. Section 38: 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. Page 101 of 160 Ordinance – Lightspeed Networks Franchise - 22 Section 39: 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, on this ____ day of ____ 2026. _____________________________ Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace City Clerk City Attorneys Published: _____________________________ Page 102 of 160 Ordinance – Lightspeed Networks Franchise - 23 SUMMARY OF ORDINANCE AN ORDINANCE GRANTING A NON-EXCLUSIVE FRANCHISE TO CONSTRUCT, INSTALL, OPERATE, MAINTAIN, REPAIR, OR REMOVE FIBER OPTIC CABLES WITHIN THE PUBLIC WAYS OF THE CITY OF PASCO The Pasco City Council passed Municipal Ordinance No. 4853 at its _____ regular meeting which in summary grants a non-exclusive franchise to Lightspeed Networks, Inc. to construct, install, operate, maintain, repair, or remove fiber optic cables within the City right-of-way. The full text of Municipal Ordinance 4853 will be provided upon request made to the Pasco City Clerk at Pasco City Hall, 525 N. Third Avenue., Pasco, WA 99301. Summary approved as to form: ________________________________ Ogden Murphy Wallace City Attorneys Page 103 of 160 ACCEPTANCE: The provisions of this amended Franchise are agreed to and hereby accepted. By accepting this Franchise, Franchisee covenants and agrees to perform and be bound by each and all of the terms and conditions imposed by the franchise and the municipal code and ordinances of the City. By: _________________________________________ Printed Name: _________________________________________ Title: ________________________________________ CERTIFICATION OF COMPLIANCE WITH CONDITIONS AND EFFECTIVE DATE: I certify that I have received confirmation that: (I) the Franchisee returned a signed copy of this Franchise to the City Council in accordance with this Franchise; (2) the Franchisee has presented to the City acceptable evidence of insurance and security as required in this Franchise; and (3) the Franchisee has paid all applicable processing costs set forth in the Franchise. The effective date of this Franchise Ordinance is _______________________________ By: _________________________________________ Printed Name: _________________________________________ Title: ________________________________________ Page 104 of 160 Pasco City Council August 17, 2026 Regular Meeting Pa g e 1 0 5 o f 1 6 0 Lightspeed Networks, Inc. Franchise Agreement August 17, 2026 Pasco City Council Pa g e 1 0 6 o f 1 6 0 Telecommunications Franchises Federal Regulation -Telecommunications Act of 1996 ensures that local jurisdictions provide for franchises that cover telecommunications services. State Regulation -State law allows localities to regulate the placement of telecommunications facilities in the right-of-way without prohibiting them entirely. Pasco Regulations -Provide for a franchise agreement covering the use of the right-of-way for telecommunications purposes. Pa g e 1 0 7 o f 1 6 0 Lightspeed Networks, Inc. holds franchises 33 other communities in Washington State including Richland, Kennewick, Benton County and Franklin County. According to the franchise,if Lightspeed Networks,Inc.decides to expand their facilities,they will be required to obtain permits for the work. At this time, they do not plan to expand. Telecommunications franchise agreements within the City of Pasco have a 10-year term and can be renewed. Lightspeed Networks, Inc. is a fiber telecommunications provider serving business customers in Oregon State and southwest Washington, as well as the Yakima Valley and Tri-Cities. Lightspeed Networks, Inc. Pa g e 1 0 8 o f 1 6 0 Lightspeed Networks, Inc. Pa g e 1 0 9 o f 1 6 0 Questions?Pa g e 1 1 0 o f 1 6 0 Public HearingPa g e 1 1 1 o f 1 6 0 AGENDA REPORT FOR: City Council July 28, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Maria Serra, Public Works Director Public Works SUBJECT: Ordinance 4852 - Amending PMC 10.70.080 Parking Prohibited I. ATTACHMENT(S): Ordinance 4852 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: "I move to adopt Ordinance No. 4852, an ordinance of the city of Pasco, Washington, amending Pasco Municipal Code section 10.70.080 “Schedule III – Parking Prohibited at all Times on Certain Streets,” to establish new parking prohibited area on N 27th Ave south of W Sylvester St, and, further, authorize publication by summary only." III. FISCAL IMPACT: The costs associated with designating this area as "No parking area" are limited to sign fabrication and installation. IV. HISTORY AND FACTS BRIEF: Background Pasco Municipal Code (PMC)10.70.080, Schedule III – "Parking prohibited at all times on certain streets" was last updated on 12/01/2025. Local business owners and patrons have raised concerns with the existing on- street parking along the N 27th Ave corridor between W Sylvester St and W Irving and improvements frontage partial the narrow The St. street, difficult, configuration of driveways/head-in parking make the site access especially for delivery trucks, when vehicles are parked along the roadway. A traffic evaluation was performed along this corridor, which resulted in the recommendation to eliminate on-street parking to increase safety and visibility when exiting driveways. Page 112 of 160 Traffic engineer's analysis included evaluation of the following factors:  2 large existing driveways on the west side  1 close driveway to the existing stop sign at Sylvester St  A paved taper for northbound traffic leading to the stop sign at Sylvester St  Head-in parking from the street on the east side  2 driveways on the east side north of Irving St  A section of N 27th Avenue that narrows to approximately 22' wide RCW 56.61.570 already prohibits on-street parking within 30 feet of an intersection. Impact (other than fiscal) On-street parking along N 27th Avenue between West Sylvester Street and West Irving Street will not be allowed. New signs are to be installed. The proposed new configuration ensures increased safety and accessibility for the residents along the corridor and drivers using it. V. DISCUSSION: Recommendation Staff recommends approval of the ordinance, updating PMC 10.70.080 and establishing the no-parking area along this corridor of N 27th Ave. This reconfiguration allows for better access to existing businesses in the area. Constraints (time or other considerations) This issue will be ongoing until remedied - therefore signage should be installed as soon as possible. Next Steps Installation of signs will follow. Alternative Alternatively, Council May not approve the ordinance. As a result, parking would be allowed on this segment of N 27th Ave. Businesses may continue to complain about the roadway configuration. This item was discussed at the Aug 10 Workshop meeting. Page 113 of 160 Ordinance – Amending PMC 10.70.080 - 1 {DPK4909-1170-1948;1/13206.000004/} ORDINANCE NO. 4852 AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING PASCO MUNICIPAL CODE SECTION 10.70.080 “SCHEDULE III – PARKING PROHIBITED AT ALL TIMES ON CERTAIN STREETS,” TO ESTABLISH NEW PARKING PROHIBITED AREA ON N 27TH AVE SOUTH OF W SYLVESTER ST; PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to PMC 10.70.030 when signs are erected, giving notice thereof, no person shall PMC of III Schedule streets listed in upon any of any time at vehicle park a the 10.70.080; and WHEREAS, this corridor has been shown to be too narrow to adequately allow for on- street parking due to truck access points, head-in parking, and driveway configurations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. PMC Section 10.70.080 is hereby amended and shall read as follows: 10.70.080 Schedule III – Parking prohibited at all times on Certain Streets. In accordance with PMC 10.70.030, and when signs are erected giving notice thereof, no person shall at any time park a vehicle upon any of the following described streets or parts of streets: “A” Street both sides from Elm Avenue to SR-12 “A” Street both sides from 9th Avenue to 11th Avenue “A” Street from Main Avenue to Beech Avenue “A” Street 300 feet west of 4th Avenue to 300 feet east of 4th Avenue “A” Street both sides from 20th Avenue to a point 250 feet west of 20th Avenue “A” Street both sides corner of “A” Street and 28th Avenue Adams Street Railroad Avenue to Rainier Avenue Agate Street between 4th and 5th Avenues Ainsworth Avenue north side from Railroad Avenue to Oregon Avenue Ainsworth Avenue south side from 10th Avenue to 4th Avenue Argent Road 20th Avenue to Road 44 Argent Road Road 84 to Road 76 Autoplex Way from Court Street south to 160 feet north of Marie Street Baker Street Railroad Avenue to Rainier Avenue Page 114 of 160 Ordinance – Amending PMC 10.70.080 - 2 {DPK4909-1170-1948;1/13206.000004/} Bonneville Street south side of Bonneville Street from a point 150 feet east of the east curb line of 10th Avenue to the east curb line of 10th Avenue Billings Street from Lewis Street to “A” Street Broadmoor Boulevard FCID canal to Nottingham Drive Brown Street north side from Road 28 to Road 26 Brown Street south side from Road 28 to a point 130 feet to the east Burden Boulevard Road 76 to Road 36 Buckingham Drive north side from Broadmoor Blvd 145 feet to the east; south side from Broadmoor Blvd 140 feet to the east Chapel Hill Boulevard Road 68 to Saratoga Lane Chapel Hill Boulevard Broadmoor Boulevard to Road 84 Chapel Hill Boulevard Crescent Road to Broadmoor Boulevard Clark Street both sides from 9th Avenue to 11th Avenue Clemente Lane Burden Boulevard to Wrigley Drive Commercial Avenue both sides from Hillsboro Avenue south one mile Court Street from 4th Avenue west to SR-395 Court Street east of 4th Avenue Court Street from Road 68 to Road 84 Court Street Road 100 to I-182 Hwy overpass Court Street 1,000 feet south of Harris Road E. Broadway Street north side from Wehe Street to Franklin Street First Avenue Court Street to Sylvester Street Fourteenth Avenue both sides from Clark Street north 100 feet Fourteenth Avenue both sides from Clark Street south to the alley Fourth Avenue east side from 300 feet south of “B” Street to 500 feet south of Columbia Street Fourth Avenue east side from 50 feet north of Columbia Street Fourth Avenue 100 feet south of Columbia Street Fourth Avenue east side from 110 feet north of Sylvester Street to Court Street; west side from Sylvester Street to 125 feet north of vacated Park Street; and from 115 feet north of Octave Street to Court Street Fourth Avenue east side from Sylvester Street north 140 feet; and on the west side from Sylvester Street north 200 feet Fifth Avenue west side from Park Street to Octave Street Fifth Avenue east side north of Court Street Fifth Avenue east side from Nixon Street to Park Street Page 115 of 160 Ordinance – Amending PMC 10.70.080 - 3 {DPK4909-1170-1948;1/13206.000004/} North Fourth Avenue between Court and Ruby Streets Heritage Boulevard both sides from US-12 to “A” Street Hillsboro Street and Commercial Avenue both sides of Hillsboro Street from a point 100 feet east of the center line of Commercial Avenue to SR-395; and on both sides of Commercial Avenue from a point 100 feet south of the center line of Hillsboro to Hillsboro Homerun Road both sides from Convention Boulevard to end James Street south side from the far east end of James Street to 400 feet west James Street north side from the far east end of James Street to 340 feet west Jay Street north side from the east curb line of Road 22 to a point 50 feet west of the east curb line of Road 22 Lewis Street from 1st Avenue to 70 feet east Lewis Street north side from 14th Avenue to 130 feet west; and north side from 14th Avenue to 80 feet east Lewis Street south side from 14th Avenue to 100 feet west; and south side from 14th Avenue to 100 feet east Lewis Street 9th Avenue to 11th Avenue Lewis Street north side from the east curb line of 7th Avenue to a point 135 feet east Lewis Street south side from 150 feet east of the center line of 1st Avenue running easterly a distance of 165 feet Lewis Street both sides from Wehe Avenue east to Cedar Avenue Lewis Street both sides from Oregon Avenue east to Wehe Avenue Lewis Street from Cedar Avenue to Billings Street Madison Avenue both sides from Burden Boulevard to Road 44 Manzanita Lane west side from “A” Street to 400 feet north Manzanita Lane east side from “A” Street to 300 feet north Ninth Avenue Washington Street to Ainsworth Street Octave Street south side from a point 280 feet east of the east curb line of Road 34 to a point 420 feet east of the east curb line of Road 34 Oregon Avenue between “A” Street and Ainsworth Avenue Oregon Avenue west side 350 feet north of Bonneville Street Oregon Avenue Hagerman Street to James Street Pearl Street both sides from N. 3rd Avenue west 200 feet Railroad Avenue Adams Street to Baker Street Rainier Avenue Adams Street to Baker Street Road 22 east side from the north curb line of Jay Street to a point 50 feet south of the north curb line of Jay Street Page 116 of 160 Ordinance – Amending PMC 10.70.080 - 4 {DPK4909-1170-1948;1/13206.000004/} Road 26 both sides of Road 26, from a point 120 feet south of the south curb line of Court Street on the east side and 245 feet south of Court Street on the west side, to 250 feet north of the north curb line of Court Street Road 26 from Court Street to Brown Street Road 28 west side from Sylvester Street to Brown Street Road 28 east side from Sylvester Street to Brown Street, except for 315 feet starting from a point 360 feet north of the intersection of Sylvester Street and Road 28 Road 34 both sides of the street from Henry Street to Court Street Road 36 both sides of the street from its intersection with Argent Place to a point 1,200 feet north of Argent Place Road 36 Burden Boulevard to 200 feet south of Meadow Beauty Drive Road 36 east side from Court Street south 650 feet Road 44 Burden Boulevard to Sandifur Parkway Road 44 Argent Road to Burden Boulevard Road 52 Burden Boulevard to Sandifur Parkway Road 60 Burden Boulevard to Sandifur Parkway Road 68 Place Burden Boulevard to Sandifur Parkway Road 68 FCID canal north to City limit Road 68 I-182 to Sandifur Parkway Road 76 east side from Sandifur Parkway to a point 620 feet south of Wrigley Drive Road 76 west side from Wrigley Drive to Burden Boulevard Road 76 west side from Sandifur Parkway to Wrigley Drive Road 80 from Court Street south Road 84 from Sunset Lane south Road 84 Argent Road to Chapel Hill Boulevard Road 100 Court Street to FCID canal Rodeo Drive Road 68 to Convention Place Ruby Street between 4th and 5th Avenues St. Helens Street Railroad Avenue to Rainier Avenue Sandifur Parkway Broadmoor Boulevard to Robert Wayne Drive Sandifur Parkway north side from Robert Wayne Drive to Road 60 Sandifur Parkway from Road 60 to Road 62 Sandifur Parkway from Road 60 to Road 44 Schuman Lane both sides of street from Road 96 to end Seventeenth Avenue west side from “A” Street to Washington Street Shoshone Street 22nd Avenue to 23rd Avenue Page 117 of 160 Ordinance – Amending PMC 10.70.080 - 5 {DPK4909-1170-1948;1/13206.000004/} Sun Willows Boulevard both sides from its intersection with 20th Avenue to its eastern terminus Sylvester Street south side from 20th Avenue to 28th Avenue Sylvester Street north side from 100 feet east of 26th Avenue to 28th Avenue Sylvester Street from the east line of 20th Avenue to a point 290 feet east thereof Tenth Avenue both sides of street from “A” Street to “B” Street Tenth Avenue from “B” Street to and including the Intercity Bridge Tenth Avenue both sides from Lewis Street to Clark Street Third Avenue east side from 50 feet south of Columbia Street Third Avenue east side from 50 feet north of Columbia Street Third Avenue both sides from 100 feet north of Sylvester Street Third Avenue both sides from 100 feet south of Sylvester Street Third Avenue west side from a point 575 feet north of Margaret Street to a point 650 feet north of Margaret Street Third Avenue both sides from W. Pearl Street north 200 feet Twentieth Avenue from Lewis Street to Argent Road, except on the east side of 20th Avenue only from a point 170 feet south of Hopkins Street to Lewis Street Twentieth Avenue both sides south of “A” Street Twenty-second Avenue west side to 550 feet south of West Henry Place, except 170 feet in front of the Police Station at 828 N. 22nd Avenue Twenty-seventh Avenue Both sides between West Sylvester Street and West Irving Street Twenty-eighth Avenue west side from Lewis Street to Sylvester Street Washington Street south side from 9th Avenue to 10th Avenue Wrigley Drive Road 76 to Clemente Lane Section 2. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this ordinance. Section 3. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this ordinance, including scrivener’s errors or regulation or rules, laws, federal reference to state, local, other mistakes; clerical or or s; numbering or referencing of ordinances or their sections and subsections. Section 4. Effective Date. This ordinance shall take full force and effect five (5) days Page 118 of 160 Ordinance – Amending PMC 10.70.080 - 6 {DPK4909-1170-1948;1/13206.000004/} after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 202_. _____________________________ Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez, MMC Ogden Murphy Wallace, PLLC City Clerk City Attorneys Published: _____________________________ Page 119 of 160 AGENDA REPORT FOR: City Council August 11, 2026 TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Maria Serra, Director Public Works SUBJECT: Resolution 4776 - Adoption of Water Use Efficiency Program Goals I. ATTACHMENT(S): Resolution 4776 DRAFT Water System Plan Chapter 4 Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4776, establishing Water Use Goals. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background The Water Use Efficiency (WUE) Rule was implemented as part of the 2003 Municipal Water Law. It exists to help reduce the demand that growing communities place on our State's water resources. This rule applies to all municipal water suppliers and requires that the suppliers meter all service connections, maintain less than 10% distribution system leakage, maintain a WUE program, and evaluate WUE measures. This item was discussed at the March 9, 2026 City Council Workshop. Staff received feedback from council regarding proposed measure and goals. A Public Forum meeting was held on June 30, 2026 to provide the opportunity Page 120 of 160 for water consumers and the general public to comment on the proposed WUE Program and Goals. In addition to the public forum, an online comment opportunity was available for community members during the two weeks preceding the meeting. No feedback was received. The goals have been prepared based on guidance from the State. There are two goals: - Reduce the average demand per equivalent residential unit (ERU) from 330 gallons per day (gpd) per ERU to 300 gpd per ERU by 2037. - Maintain distribution system leakage (DSL) at 10 percent or less on an annual basis. The City will reach the WUE Program Goals through measures that either reduce usage or leakage. These measures are described in detail in the Draft Water System Plan Chapter 4 and include activities like education on conservation and water use, implementation of new technology, and notification to customers when unusually high water consumption occurs. Impact (other than fiscal) The WUE program is an essential element within the Water System Plan, which is currently under development for completion in 2027. If the WUE Program Goals are not adopted, the City will not be in compliance with WAC 246-290-830, which requires the governing body of the public water system to establish water use efficiency goals. V. DISCUSSION: Recommendation Staff recommends approval of the resolution that adopts the WUE Goals. Constraints (time or other considerations) The WUE goals must be updated every 10 years as part of Water System Plan updates. Next Steps Adopt the WUE Goals and incorporate those into the Water System Plan. Alternatives - Do not adopt the WUE Goals, or - Council may suggest additional measures for consideration. Page 121 of 160 Resolution - 4776- 1 Version 1.9.26 RESOLUTION NO. 4776 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ESTABLISHING WATER USE EFFICIENCY GOALS. WHEREAS, In 2003, the Washington State Legislature passed the Municipal Water Supply Efficiency Requirements Act (HB 1338) to address the increasing demand on our state’s water resources; and WHEREAS, HB 1338 included a directive for the Washington State Department of Health (DOH) to adopt goals that establish water use efficiency (WUE) requirements for all municipal water suppliers, which resulted in the WUE and became effective on January 22, 2007; and WHEREAS, the City held a Public Forum on June 30, 2026, to provide the opportunity for water consumers and the general public to participate and comment on the proposed WUE Program and Goals; and WHEREAS, the current resolution supersedes resolution No. 3840 and updates the WUE Goals set forth in said resolution, and WHEREAS, the Council has determined that it is in the public interest to approve the updated WUE Program and Goals. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the updated Water Use Efficiency Goals are updated as follows: a. Reduce the average demand per equivalent residential unit (ERU) from 330 gallons per day (gpd) per ERU to 300 gpd per ERU by 2037. b. Maintain distribution system leakage (DSL) at 10 percent or less on an annual basis, and Be It Further Resolved, that the City Manager is hereby authorized and directed to employ municipal water resources as necessary and appropriate to achieve the goals established herein, and Be It Further Resolved, that this resolution shall take effect immediately. Page 122 of 160 Resolution - 4776- 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 123 of 160 J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) 4-1 4 | WATER USE EFFICIENCY INTRODUCTION The City of Pasco (City) acknowledges that water is a valuable and necessary natural resource that must be used wisely. The Water Use Efficiency (WUE) program provides an approach to increase WUE within the City’s water system. BACKGROUND The Water Use Efficiency Rule The Washington State Department of Health (DOH) implemented the WUE Rule, effective on January 22, 2007, as required by the Municipal Water Supply – Efficiency Requirements Act, also known as the Municipal Water Law (MWL), passed by the Washington State Legislature in September 2003. The MWL requires the state to implement the WUE Rule. The intent of the rule is to help reduce the demand that growing communities, agriculture, and industry have placed on the state’s water resources, and to better manage thes e resources for fish and other wildlife. Municipal water suppliers are obligated under the WUE Rule to enhance the efficient use of water by the system and/or its consumers. The requirements of the WUE Rule are set forth in Chapter 246-290 Washington Administrative Code (WAC), Part 8. Water Use Efficiency Requirements The Water Use Efficiency Guidebook, originally published by DOH in July 2007, with multiple revisions since including the most recent revision in May 2025, identifies the water use reporting, forecasting, and efficiency program requirements for public water systems. A WUE program meeting these requirements is a necessary element of a Water System Plan (WSP) as required by DOH and is necessary to obtain water right permits from the Washington State Department of Ecology. The Water Use Efficiency Guidebook defines the necessary components of a WUE program as the following three fundamental elements: 1. Planning requirements that include collecting data, forecasting demand, evaluating WUE measures, calculating distribution system leakage (DSL), and implementing a WUE program to meet goals. 2. A DSL standard of 10 percent or less based on a 3 -year rolling average. For systems with less than 500 connections, the DSL standard may be increased to 20 percent if a request with supporting data is provided to DOH. 3. Goal setting to provide benchmarks for achievement and help define the success of the WUE program, and to support public annual performance reporting on progress toward meeting WUE goals. Page 124 of 160 CHAPTER 4 CITY OF PASCO WATER SYSTEM PLAN 4-2 J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) WATER USE EFFICIENCY PROGRAM As previously described, the fundamental elements of a WUE program include planning requirements and DSL standards, as well as goal setting and performance reporting. The City’s water use data, demand forecasts, and other planning requirements are contained in Chapter 2 of the WSP. The City is committed to continuing to collect water use data beyond that presented in Chapter 2 for evaluation of its WUE program and water use patterns, and for forecasting demands for future facilities. The City’s WUE program that follows includes a statement of its goals and objectives, the evaluation and selection of alternative efficiency measures, the schedule and budget, and the method of program monitoring. Water Use Efficiency Goals Per WAC 246-290-830, WUE goals must be set through a public process and shall be evaluated and re-established as part of a WSP update. The City formally adopted previous WUE goals in June 2018, as part of the 2019 WSP. The City has established updated WUE goals for this WSP update, with the new WUE goals as follows: • Reduce the average demand per equivalent residential unit (ERU) from 330 gallons per day (gpd) per ERU to 300 gpd per ERU by 2037. • Maintain DSL at 10 percent or less on an annual basis. Public Process In compliance with the new WUE Rule, a public hearing was held on [insert date], to present and discuss the new goals. Background on the City’s proposed WUE program, water supply characteristics, water demand forecasts, and other elements were made available 2 weeks prior to the public hearing date. Documentation related to the public hearing is included in Appendix K. The City Council adopted the new WUE goals on [insert date if/when adopted]. Meeting minutes from this City Council meeting and a copy of the resolution adopting the new WUE goals are included in Appendix K. Page 125 of 160 CITY OF PASCO WATER SYSTEM WATER USE EFFICIENCY J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) 4-3 Historical DSL The amount of DSL in the City’s system has been under 10 percent on an annual basis for all years except 2023, as shown in Chart 4-1. The increase in DSL in 2023 is believed to be due to a new billing software implemented by the City during this time period, which artificially increased DSL at this time. The rolling 3-year average DSL is also shown in Chart 4-1 and has remained under the 10 percent requirement since 2014. The City’s updated WUE goal is to maintain DSL below 10 percent, which is intended to maintain compliance with WAC 246-290-820(1)(b). Chart 4-1 Historical DSL Regional WUE Efforts The Quad City Water Right, utilized by the City, requires that the Cities of Pasco, Kennewick, Richland, and West Richland develop a Regional Water Forecast and Conservation Plan (RWFCP). The RWFCP addresses water use and conservation in the City of Pasco. The most recent version of the RWFCP was prepared in 2026, and is included in Appendix L. Evaluation and Selection of Water Use Efficiency Measures The City's evaluation of WUE measures and selected levels of implementation are presented within this section. The measures fall within three categories of implementation: 1) mandatory measures that must be implemented; 2) measures that must be evaluated; and 3) additional measures selected by the City that either must be evaluated or implemented. 0% 2% 4% 6% 8% 10% 12% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Di s t r i b u t i o n S y s t e m L e a k a g e Annual DSL Percentage Rolling 3-Year Average DSL Percentage Requirement: 10% DSL Page 126 of 160 CHAPTER 4 CITY OF PASCO WATER SYSTEM PLAN 4-4 J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) The City served 24,936 water service connections in 2025. Based on the number of connections, at least nine WUE measures must be evaluated or implemented. Measures that are mandatory cannot be credited towards the system’s WUE measures. Since the City implements or plans on implementing all of the evaluated measures presented here, a cost -effective evaluation is not required. Mandatory Measures Source Meters The volume of water produced by the system’s sources must be measured using a source meter or other meter installed upstream of the distribution system. Source meters currently are installed and operating at each of the City’s sources. If any new sources are installed in the future, they will be equipped with a source meter. Service Meters All public water systems that supply water for municipal purposes must install individual service meters for all water users. Service meters currently are installed and operating at all connections throughout the distribution system. All future connections that are installed or activated will be equipped with a service meter. Meter Calibration The City calibrates and maintains meters based on generally accepted industry standards and manufacturer information. Meters not meeting generally accepted industry or manufacturer standards are replaced or scheduled for replacement. Currently, City repairs or replaces small meters on a recurring 10-year schedule. The City has 19 large meters greater than or equal to 6 inches, which are all tested and replaced according to manufacturer recommendations . The City tests and calibrates all source meters regularly to ensure that they meet the manufacturer’s recommendations. Water Loss Control Action Plan To control leakage, systems that do not meet the state DSL standard of 10 percent must implement a Water Loss Control Action Plan (WLCAP). The City’s rolling 3-year average DSL has been less than 10 percent for the past 10 years based on the information presented in Chapter 2. Therefore, a WLCAP is not required to be implemented. Customer Education Annual customer education regarding the importance of using water efficiently is a required element of all WUE programs. Customer education is provided in the City’s annual Consumer Confidence Report to customers and includes information on the system’s DSL, progress towards meeting WUE goals, and tips for customers on using water more efficiently . Additional customer education and outreach measures are identified in the Selected Measures section. Page 127 of 160 CITY OF PASCO WATER SYSTEM WATER USE EFFICIENCY J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) 4-5 Measures That Must Be Evaluated Conservation Rate Structures A rate structure that encourages WUE and provides economic incentives to conserve water must be evaluated but is not required to be implemented. The City’s rates have historically included a monthly base charge depending on the size of the water meter, and a volumetric charge per 100 cubic feet of water consumption each month. The City’s potable water system includes a mix of customers with and without access to non-potable irrigation supplies. In some areas, outdoor demands are met through separate irrigation districts or the City’s own non-potable irrigation system, while other areas rely solely on the potable system for all uses, including irrigation. Because of this uneven access, implementing an increasing block (tiered) potable rate structure would disproportionately impact customers without alternative water sources, effectively penalizing them for higher outdoor use that other customers can offset with lower-cost non-potable supplies. To avoid these inequities, the City has maintained a uniform potable water rate structure that provides consistent pricing across all service areas. Reclamation Opportunities Revised Code of Washington (RCW) 90.46.010 defines reclaimed water as “water derived in any part from wastewater with a domestic wastewater component that has been adequately and reliably treated, so that it can be used for beneficial purposes.” Water systems with 1,000 or more connections must evaluate reclamation opportunities (WAC 246-290-100(4)(f)(vii)), but only actual use of reclaimed water counts as a WUE measure (WAC (246-290-810(4)(d)) or multiple WUE measures if the reclaimed water is used for mul tiple purposes. The City has been an active participant in recycle and reuse opportunities , most notably via the Process Water Reuse Facility (PWRF) owned and operated by the City . The PWRF collects and treats process water effluent from local processing facilities and uses the water to irrigate approximately 1,900 acres of City-owned agricultural land. Utilizing reuse water on this land reduces the reliance of the City’s groundwater rights and wells, and the City is exploring the possibility of changing some or all the PWRF water rights and wells to year-round municipal use in the future. Non-potable irrigation supply already exists in large areas of the City, including provisions to extend non-potable service to nearly all future growth areas , which captures much of the demand that reclaimed water would otherwise serve. Because outdoor irrigation represents the primary use for reclaimed water, this existing infrastructure substantially reduces the remaining demand base needed to support a separate reclaimed water system. As a result, implementation of a reclaimed water system is less economically competitive given the availability of established, lower-cost non-potable alternatives. Page 128 of 160 CHAPTER 4 CITY OF PASCO WATER SYSTEM PLAN 4-6 J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) Selected Measures The City has chosen to implement 7 different WUE measures through 2037. Because several of these WUE measures affect multiple customer classes, the City’s WUE program counts as 14 WUE measures, as shown in Table 4-1, which is greater than the requirement of 9 WUE measures based on the number of service connections . Table 4-1 WUE Program Measures The City’s water billing classes include three different groups, consistent with the customer classes described in Chapter 2. These customer classes include: 1) single-family residential, 2) multi-family residential, and 3) commercial. WUE Measure Source Meters Installed Service Meters Installed Meter Calibration Compliance Water Loss Control Action Plan Customer Education Rate Structure Reclamation Opportunities Measure Description SF MF COMM Water Bill Showing Consumption History P P P Free Toilet Leak Detection Dye Tablets, Education, and Tank Banks P P Free Bathroom Faucet Aerators P P Free Low-Flow Showerheads P P School Outreach P P Customer Leak Notification P P P Xeriscaping Total Selected WUE Measures SF = Single-Family MF = Multi-Family COMM = Commercial P 14 P P P Not Applicable P P Implementation Status Mandatory WUE Measures WUE Measures That Must Be Evaluated Selected WUE Measures Page 129 of 160 CITY OF PASCO WATER SYSTEM WATER USE EFFICIENCY J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) 4-7 Water Bill Showing Consumptive History The City has historically presented consumption history charts and information on water bills for all customer classes and plans to continue to do so in the future . The bills present water consumption for the same period from the previous year and include a chart presenting the consumption for the 13 previous months for reference. This measure is implemented for all customer classes and counts as three selected WUE measures. Free Toilet Leak Detection Dye Tablets , Education, and Tank Banks The City offers free leak detection dye tablets to customers to assist in identifying leaks , and toilet tank banks to reduce the water use every flush. Instructions for using the dye tablets and fixing toilet leaks also are free for City customers. This measure is implemented for the single-family and multi-family customer classes and counts as two selected WUE measures. Free Bathroom Faucet Aerators The City offers free bathroom faucet aerators to residential customers that reduce flows to 1.0 gallon per minute. This measure is implemented for the single-family and multi-family customer classes and counts as two selected WUE measures. Free Low-Flow Showerheads The City offers free low-flow showerheads to residential customers that reduce flows and have responsive flow control. This measure is implemented for the single-family and multi-family customer classes and counts as two selected WUE measures. School Outreach The City partners with the Franklin County Conservation District to provide WUE education and outreach to students in local schools from kindergarten through 12 th grade. Per the Franklin County Conservation District website “Project WET [Water Education for Teachers] is an award-winning, non-profit water education program. The program facilitates and promotes awareness, appreciation, knowledge, and stewardship of water resources through the dissemination of classroom-ready teaching aids and the establishment of internationally sponsored Project WET programs.” This measure is implemented for the single-family and multi-family customer classes and counts as two selected WUE measures. Customer Leak Notification The City plans to implement a program to identify unusually high water consumption and notify customers of a possible leak downstream of the water meter. As part of this notification process, the City plans to provide guidance on recommended next steps, including conducting a 60-minute test during which all water use is discontinued and the customer records the water meter at the start and end of the hour; inspecting under-sink plumbing for drips or standing water; looking for wet spots, pooling water, or unusually green vegetation that may indicate a service line leak; inspecting water softeners or filtration systems for continuous discharge; and Page 130 of 160 CHAPTER 4 CITY OF PASCO WATER SYSTEM PLAN 4-8 J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) contacting a plumber. This measure is planned to be implemented for all customer classes and counts as three selected WUE measures. Xeriscaping The City promotes xeriscape landscaping as part of Pasco Municipal Code 25.180. This ordinance describes the requirements for low-water demand landscaping, drought resistant grasses and plantings, mulches and ground cover to save moisture and prevent soil erosion, and high efficiency irrigation systems. Xeriscaping is optional and therefore does not count as any WUE measures. Water Use Efficiency Program Schedule, Savings, and Budget The WUE measures described in this chapter and selected for implementation by the City are summarized in Table 4-2 with their corresponding schedule and budget. The successful implementation of this WUE Program is expected to achieve the goal of reducing per ERU demand by 30 gpd by 2037, resulting in a demand per ERU of 300 gpd. Accomplishing these goals is expected to reduce the system-wide average daily demand by approximately 42,350 gpd, as shown in Chart 4-2. A summary of the projected savings from each of the WUE measures is shown in Table 4-2. Chart 4-2 Projected WUE Program Savings 15,000,000 16,000,000 17,000,000 18,000,000 19,000,000 20,000,000 21,000,000 22,000,000 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Da i l y P r o d u c t i o n V o l u m e ( g a l l o n s p e r d a y ) Projected Average Daily Production with WUE Free Toilet Devices Free Bathroom Faucet Aerators Free Low-Flow Showerheads School Outreach Customer Leak Notification Xeriscaping Water Bill Showing Consumption History New Construction Customers Page 131 of 160 CITY OF PASCO WATER SYSTEM WATER USE EFFICIENCY J:\DATA\PSC\24-0066\10 REPORTS\CHAPTERS\PSC WSPCH4.DOCX (6/2/2026 4:22 PM) 4-9 Table 4-2 WUE Program Schedule, Savings, and Budget O&M = Operation and Maintenance Water Use Efficiency Program Evaluation and Performance Reporting The City will continue to evaluate overall demand, per ERU water use, and the amount of DSL on an annual basis, coinciding with the production of its annual WUE performance report. The City also will evaluate the performance of its WUE program and implemented measures at this time by analyzing demand data and determining the long -term trend towards reducing water usage and meeting WUE goals. If the WUE program monitoring shows that progress towards meeting the WUE goals is not being accomplished, more rigorous WUE program implementation or additional WUE items will be considered, along with a cost -effective evaluation of measures. The City will comply with DOH annual WUE performance report requirements, due to DOH by July 1 of each year. Source Meters Installed Ongoing ---------O&M Funded Service Meters Installed Ongoing ---------O&M Funded Meter Calibration Compliance Ongoing ---------O&M Funded Water Loss Control Action Plan Not Applicable ---------Not Applicable Customer Education Ongoing ---------$3,000 Rate Structure Ongoing ---------Not Applicable Reclamation Opportunities Ongoing ---------Not Applicable Water Bill Showing Consumption History Ongoing ------50 Not Applicable Free Toilet Leak Detection Dye Tablets, Education, and Tank Banks Ongoing 50 0.05 3 $250 Free Bathroom Faucet Aerators Ongoing 50 0.25 13 $500 Free Low-Flow Showerheads Ongoing 50 0.25 13 $750 School Outreach Ongoing ------5 $10,000 Customer Leak Notification Begin in 2027 ------100 $10,000 Xeriscaping Ongoing ------1,500 $5,000 Annual Totals ---------1,683 $29,500 2027 through 2036 Totals ---------16,825 $324,500 WUE Measure Schedule Annual Budget Estimated Annual Savings (gpd) Estimated Annual Savings per Device (gpd) Mandatory WUE Measures WUE Measures That Must Be Evaluated Selected WUE Measures Estimated Annual Quantity of Devices Page 132 of 160 Pasco City Council August 17, 2026 Regular Meeting Pa g e 1 3 3 o f 1 6 0 Water Use Efficiency (WUE) Program and Goals August 17, 2026 Pasco City Council Pa g e 1 3 4 o f 1 6 0 Water Use Efficiency (WUE) Rule Implemented as part of the 2003 Municipal Water Law Goal is to help reduce the demand growing communities place on our State’s water resources Applies to all municipal water suppliers  Pa g e 1 3 5 o f 1 6 0 WUE Program Steps Consider Council feedback Update WUE measures and goals Hold public forum to solicit feedback (June 30, 2026) City Council to adopt WUE goals at future meeting (today) Submit annual WUE performance reports to DOH Update WUE goals every 10 years as part of Water System Plan updates Pa g e 1 3 6 o f 1 6 0 WUE Goals Reduce the average demand per equivalent residential unit (ERU) from 330 gallons per day (gpd) per ERU to 300 gpd per ERU by 2037. Maintain distribution system leakage (DSL) at 10 percent or less on an annual basis.  Pa g e 1 3 7 o f 1 6 0 Questions?Pa g e 1 3 8 o f 1 6 0 AGENDA REPORT FOR: City Council TO: Harold Stewart, City Manager City Council Regular Meeting: 8/17/26 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Cannabis – Resolution Setting a Public Hearing to Consider an Amendment to PMC 25.10.025 I. ATTACHMENT(S): Resolution 4777 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4777 setting 7:00 p.m. on Tuesday, September 8, 2026, as the time and date for an open record public hearing to consider an amendment to Pasco Municipal Code increasing the cannabis retail license density limit from four (4) to five (5) licenses, and increasing the number of licenses authorized through the State's Social Equity in Cannabis Program from one (1) to two (2). III. FISCAL IMPACT: Setting a public hearing does not, by itself, obligate City funds. An additional operating cannabis retailer would increase the City’s share of the State Retail Sales Distribution over time. In Fiscal Year 2025, the City received approximately $41,650 through that distribution from existing four licenses. The applicant’s economic brief projects year-one pre-tax retail sales of $2.4–$3.6 million and 10–15 local jobs at opening, which would generate additional State excise tax and local sales tax revenue attributable to activity within the City. IV. HISTORY AND FACTS BRIEF: Background On July 27, 2026, during a City Council Workshop, staff presented an overview of Washington's cannabis retail licensing framework, the City's current regulations under PMC 25.10.025, cannabis revenue received by the City, and the policy options available to Council. Following discussion, Council directed Page 139 of 160 staff to increase the City's cannabis retail density limit from four (4) to five (5) licenses and to establish future increases based on a population standard of one (1) license per 30,000 residents. Separately, the City received a formal submission package from Compas LLC (dba Compas Cannabis Company), a locally owned Washington limited liability company owned by Zachary Fairley, providing notice of its pending Equity Social (WSLCB) Board State and Liquor Washington Cannabis cannabis retail license application (Application No. 445257). Compas LLC and WSLCB has requested the City's affirmative consent through the WSLCB Local Authority Notice. Compas' application is filed under the WSLCB Social Equity in Cannabis Program established pursuant to RCW 69.50.335 and implemented through WAC to retail issue WSLCB That authorizes program 314-55-570. the cannabis licenses above the standard population-based local allotment, subject to local input. Under PMC 25.10.025, the City currently maintains a cannabis retail density limit of four (4) licenses (three retail facilities, or four if one is licensed currently four Program). Equity All State's the through Social authorized licenses are in operation. Consistent with Council's July 27, 2026 direction, staff will prepare an ordinance amending PMC 25.10.025 to revise this density limit from four (4) to five (5) licenses, with two (2) licenses authorized through the State's Social Equity Program. On August 3rd, 2026 meeting, City directed staff to affirmatively consent to Compas's application pending with LCB and for staff to take steps to revise City's municipal code to increase its cannabis retail license. Impact (other than fiscal) None. V. DISCUSSION: Recommendation As directed by Council on August 3rd, 2026, the attached resolution sets a public hearing date on September 8th, 2026. Constraints (time or other consideration)  The City’s current PMC 25.10.025 density limit of four (4) remains in effect until amended; the code amendment to five (5) should proceed in parallel so the City’s regulations and consent are consistent.  The City cannot independently issue cannabis retail licenses; issuance remains subject to WSLCB approval through the Social Equity Program. Next Steps Page 140 of 160  Conduct public hearing on September 8th, 2026.  Staff will prepare SEPA and request expedited comments from Department of Commerce as per required by City codes and state laws.  Staff will prepare an ordinance amending PMC 25.10.025 to revise the cannabis retail license density limit from four (4) to five (5) licenses and establish future increases at one (1) license per 30,000 population. Due to requirements to conduct public hearing and appropriate public notice on this matter, staff anticipates this effort to be complete in two months. Alternative  Take no action. Any business licenses for cannabis would not be approved under current code. Page 141 of 160 Resolution Setting PH for Cannabis License Increase - 1 Version 1.9.26 RESOLUTION NO. 4777 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON SETTING 7:00 PM, SEPTEMBER 8 2026, AS THE TIME AND DATE FOR A PUBLIC TO CONSIDER HEARING PASCO TO AMENDMENT AN MUNICIPAL CODE SECTION 25.10.025 INCREASING THE CANNABIS RETAIL LICENSE DENSITY LIMIT FROM FOUR (4) TO FIVE (5) LICENSES AND INCREASING THE NUMBER OF SOCIAL EQUITY RETAIL LICENSES FROM ONE (1) TO TWO (2). WHEREAS, the City of Pasco regulates the location and density of cannabis retail uses through Pasco Municipal Code, which currently authorizes a maximum of four (4) cannabis retail licenses within the City, consisting of three (3) retail facilities, or four (4) if one is licensed through the State's Social Equity in Cannabis Program; and; and WHEREAS, all four (4) currently authorized cannabis retail licenses are in operation within the City; and WHEREAS, on July 27, 2026, at a City Council Workshop, staff presented an overview of the State's cannabis retail licensing framework, the City's regulations under PMC 25.10.025, cannabis-related revenue received by the City, and available policy options, and the City Council directed staff to increase the City's cannabis retail density limit from four (4) to five (5) licenses and to establish future increases based on a standard of one (1) license per 30,000 residents; and WHEREAS, implementing that direction requires increasing the number of cannabis retail licenses authorized through the State's Social Equity in Cannabis Program from one (1) to two (2); and WHEREAS, amendments to the City's development regulations set forth in PMC Title 25 require an open record public hearing preceded by published and posted notice; and WHEREAS, the City Council finds it to be in the best interest of the public health, safety, and welfare of the citizens of the City of Pasco to conduct such a hearing; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. Notice of Hearing. An open record public hearing shall be held before the Pasco City Council on Monday, September 8, 2026, commencing at 7:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers at Pasco City Hall, 525 N. 3rd Avenue, Pasco, Washington, and by remote participation as provided in the published notice, to receive public testimony on a proposed amendment to PMC 25.10.025. Section 2. Subject of Hearing. The proposed amendment would increase the maximum number of cannabis retail licenses authorized within the City from four (4) to five (5), of which Page 142 of 160 Resolution Setting PH for Cannabis License Increase - 2 Version 1.9.26 two (2) may be issued through the State's Social Equity in Cannabis Program, and would establish a standard for future increases of one (1) license per 30,000 residents. Section 3. That the City Clerk of the City of Pasco give notice of said public hearing as required by law. Section 4. 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: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney Page 143 of 160 1 TO: Mayor, Charles Grimm Members of the City Council FROM: Harold Stewart, City Manager DATE: August 17, 2026 City Manager: The City Manager was out of office August 3rd through the 7th and did not attend any meetings. The week of August 10th the City Manager and Deputy City Manager attended the Washington City Manager Association (WCMA) Summer Conference in Kennewick. Preparations were also being made for the Employee Appreciation Picinic, the Council retreat, and budget work. The Employee Appreciation BBQ will be held August 20th from 11:30am to 1pm. Council is invited to help serve food and interact with the employees of the City. The event will take place at Pasco City Hall in the plaza area. While the Department Heads will provide updates specific to their responsibilities here are several priorities to on in addition taking office being worked the 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 approved at the July 20th Council meeting. A development agreement with Elevated is still being prepared by staff and the consultants and is near completion. The intention is to have the agreement ready for Council action in September. 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. Still the 2 Commission on County from awaiting response the nd offer to purchase the softball complex. 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 the of going Shelter structure forward. agreed have managers city to The some potential changes to structure and policy that will be discussed in upcoming ACA meetings. 4. Hiring of IT Director – The first recruitment was not successful and the position is being recruited again. 5. FY 27/28 Budget - Staff is preparing a budget recommendation. Page 144 of 160 2 6. Public Dollars for Public Benefit- This item was tabled by Council until January 2027. 7. Employee Survey – Survey has closed as of 7/31. Most recent participation rate was at 66%; final numbers will be available next week. Staff will work with OnPointe to evaluate the survey data in August. 8. Essential Public Facilities and LRAs- Council approved an extension of the moratorium on August 3, and staff continues to work on Council’s direction. Preliminary dates include a public hearing on September 14, ordinance workshop on December 28, and final public hearing and action on January 4, 2027. 9. 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 CIPof process the in preparing , with p Council to resentation now planned for month of September and adoption in October. 10. 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. 11. 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. these for provided potential Council entities 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 will continue coordination of these meetings in the fall, after the upcoming Council Retreat. 12. City Council Retreat – The City Council Retreat has been scheduled for Friday, August 21, 2026, based on Council availability. Staff continues coordinating facilitation, securing an off-site venue, and finalizing the agenda and event logistics. 13. Increase in number of Cannabis Licenses – Staff is working on appropriate steps to increase the number of social equity license for cannabis from 1 to 2 and future increases based on population. August 17th, Council will be asked to take action on resolution to set the date for a public hearing. We expect this process to take 8 weeks. 14. Data Center Moratorium – A 6 -month moratorium was passed on July 20th via Ordinance no. 4850. Staff is working on preparing the necessary information for public conversation on communitieson their potential and centers data impacts , to visits site including communities with existing data centers. Page 145 of 160 3 Meetings attended since the last report: Communication meetings with the Mayor, Mayor Pro Tem, members; Council all and WCMA Summer Conference; internal other and many 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 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 violations an Fourth of alleges their stop. traffic 2020, 25, April The Plaintiff d 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. • and Bono Counsel Pro for request the Plaintiff’s denied 2026: 10, March The Court 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 applicable three-the to fails otherwise complaint that limitations of 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 conditicontesting appeal (LUPA) Act several Use Land a as filed Petition of ons 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 Condition 17 – of collection Required Condition: Credit Impact No parks, Fee transportation and school impact fees at the then-applicable rates. It also specified Page 146 of 160 4 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 constructed and in are alignments road all designed 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 Beacons at the crosswalk leading to the Rosalind Franklin STEM Elementary School. • December 2025: The Court conducted the hearing on the LUPA petition. • largely Examiner’s Hearing the affirming order January issued Court The 2026: an decision and dismissing the LUPA petition on all but one issue. The Court ruled in favor of the the 52 Road and Road that Burns 17, finding No. Condition regarding Plaintiff i the result, a As improvements.” larger City of 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 a lawsuit aware became 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. Page 147 of 160 5 4. Dave Swisher & Farm 2005 LLC v. City of Pasco Counsel: Adam Rosenberg & Bob Sterbank Lawsuit: Land Use Petition Act Challenge Current Status: Lawsuit filed • May 2026: The City was made aware of a lawsuit filed by the plaintiffs stemming from the City Council’s decision to deny and dismiss an appeal for the Madison Park North Phase 1 final plat. The issues the plaintiff has are: o Issue 1: Burns Road Right-of-Way Dedication o Issue 2: Burns Road Three-Lane Build-Out Exceeds Phase 1 Impacts. o Issue 3: LID/ULID Waiver of Protest Statement on the Recorded Plat. o Issue 4: City Staff Accelerated School Improvements into Phase 1. 5. Dave Swisher & Farm 2005 LLC v. City of Pasco Counsel: Adam Rosenberg & Bob Sterbank Current Status: Notice of Filing of Petition/Notice of Removal to U.S. District Court • May 2026: The City was made aware of a lawsuit filed by the plaintiffs seeking damages stemming from City's Hearing Examiner's conditions of approval for the Preliminary Plat and the denial of and dismissal of the appeal for the Madison Park North. • June 2026: Notice of Filing of Petition/Notice of Removal to U.S. District Court 6. Lewis Place, LLC v. City of Pasco Counsel: Ogden, Murphey & Wallace PLLC Current Status: The City filed a certified administrative record. • 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 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, Page 148 of 160 6 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 limiting 25.160.070(5), comply to with PMC roadway internal revise the system 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. • July 2026: The designated clerk for the City’s hearing examiner submitted a copy of the administrative record for the appeal proceeds. 7. Matthew P. Jensen vs City of Pasco Counsel: Mix Sanders Thompson, PLLC Current Status: Lawsuit filed, the City filed notice of appearance • June 2026: The City was notified of a lawsuit filed by the Plaintiff alleging damages arising from the actions of a City employee during the course of their official duties. • July 2026: The City filed Notice of Appearance 8. W.S. vs City of Pasco and City of Pasco employees Counsel: Baker Sterchi Cowden & Rice Current Status: Lawsuit filed, the City submitted answer and affirmative defenses to Plaintiffs complaint for damages. • July 2026 : The City was notified of a lawsuit filed by the Plaintiff alleging negligent hiring, training, supervision, and retention of a City employee, as well as vicarious Page 149 of 160 7 liability under the doctrine of respondeat superior and discrimination based on sex/gender. The lawsuit also alleges that the same City employee committed assault and battery, intentional infliction of emotional distress (outrage), and discrimination based on sex/gender. • July 2026: The City was notified of a small claims action filed by the Plaintiff alleging that damages resulted from actions taken by City staff during the course of official City operations. 9. Mark Sires vs City of Pasco Counsel: N/A Current Status: Small Claims filed by Plaintiff. Trial date is set for September 21st, 2026. • July 2026: The City was notified of a small claims filed by Plaintiff alleging damages caused by City staff to their boat during an investigation conducted by the City of Pasco police. WCIA had denied the claim made by Mr. Sires. 10. Arthur West vs. Downtown Pasco Development Authority et al Counsel: Ogden, Murphey & Wallace PLLC Current Status: Clerk’s notice for dismissal for want of prosecution • June 2024: The City was notified of a lawsuit filed but the Plaintiff against the Downtown Development Authority, Downtown Development Authority Board members and the City of Pasco alleging violation of the law by deliberating as a quorum and taking action or final action outside context of a lawful public meeting on multiple dates. • July 2026: Ogden, Murphey & Walace PLLC received notice of dismissal for want of prosecution. The Plaintiff has 30 days to respond. Risk & Safety: 1. The City just completed their 2026 Member Annual Audit with WCIA. The audit was roadways. emphasis on with Works Public on focused an a completed City The questionnaire before the in-person meeting and discussed the responses with the City’s assigned Risk Representatives. Management and pleased were no findings WCIA had with the overall audit results. 2. A review of the City's Risk Profile provided by WCIA found that, compared with similar experienced However, projected. than overall City fewer total the jurisdictions, claims incurred costs were significantly higher than expected, primarily due to public safety claims associated with the Police Department. Public Records: Over the past 30 days, the City Clerk's Office received 137 public records requests and closed 171, a net reduction of 34 requests in the backlog that accumulated during the City Clerk vacancy. Staff continue to work through the remaining backlog. Page 150 of 160 8 The Police Department accounts for nearly 70% of requests, and the Community and Economic Development Department for 16%. Volume alone does not reflect workload: request complexity varies widely and drives the staff time required to respond. Over the next 24 months, staff will develop a City-wide records management plan and train key staff to reduce risk exposure, labor costs for records searches, and data storage costs. Staff will also evaluate policy and technology changes to make the public records process more efficient. Human Resources Director, Sara Matzen City of Pasco – Monthly HR Council Report Reporting Month: July, 2026 1. Headcount vs. Budgeted Positions • Active Headcount: 450 • Budgeted Positions: 510.35 • Variance: -60.35 2. Recruitment Activity • Open Positions (as of month-end): 16 • Positions Filled This Month: 2 • Critical/Hard to Fill positions 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. o Engineer:Senior role the Related experience for – engineering license. specific Involving staffing agency for assistance. The role is reposted on our careers page and external job boards. We currently have 1 vacancy remaining. 3. Medical Claims – Trends & Budget to Actual • YTD Claims (Budget vs. Actual): $4,987,516 vs. $5,798,451 • % of Budget Used YTD: 86% 4. Year to Date (YTD) Medical Claim Costs by Plan 5. Leave Counts • Protected Leave of Absence (PFML, FMLA) o Intermittent Schedule: 13 Employees o Continuous: 15 employees • Workers’ Compensation: 1 employees Page 151 of 160 9 7. Worker Compensation Claims (for prior month) • # of incidents: 7 • # of timeloss cases: 1 • Total YTD # of Cases: 42 8. Turnover Rate (YTD) • Voluntary: 4.93% • Involuntary: 1.12% • Total Turnover YTD: 6.06% • Average Length of Service at separation: 4.5 years 9. Strategic Projects: • Executive Recruitment: Successfully completed the recruitment and hiring process for the City’s Police Chief, filling a key executive leadership position. Preparing to relaunch the recruitment for the City’s Information Technology Director. • Labor Relations: Prepared for and initiated collective bargaining negotiations with IAFF Local 1433. • Employee Benefits: Began renewal discussions for the City’s employee health insurance program and evaluated opportunities to enhance the overall benefits package, including the potential addition of long-term disability coverage. • SupportOrganizational & Restructuring: some for support Provided consultation and organizational restructuring efforts across several City departments to improve operational effectiveness, align service with staffing better and responsibilities, roles clarify and needs. • Recruitment & HR Systems: Researched additional recruitment system modules and technology enhancements to improve process efficiency, strengthen compliance, and streamline HR administration. • HR Organizational Structure: Continued evaluating and restructuring the Human Resources Department to improve organizational support, clarify roles and responsibilities, and strengthen service delivery across City departments. • Personnel Processes & Compliance: Continued improvements to personnel action processes and documentation to strengthen internal controls, recordkeeping, and compliance with Washington State Auditor expectations. • Technology & Process Improvement: Began expanding the use of Microsoft 365 tools to sharing, overall and document workflow collaboration, team improve management, process efficiency. Finance Director, Kevin Hebdon Fiscal Year-End & Audit Readiness SAO Engagement: We continue to coordinate with the Washington State Auditor’s Office (SAO) regarding the Annual Comprehensive Financial Report (ACFR) and the upcoming audit. The SAO remains committed to reviewing the P are They currently 30 September the meeting deadline. financial FD’s statements, alongside the City’s $3.6 million in federal expenditures from the 2025 Coronavirus State and Local Fiscal Recovery Funds (COVID-the Staffing 19) and $1.7 million from for Adequate Fire and Emergency Response (SAFER) program. Fund financial statements are complete and will be delivered to the SAO today, August 5. The remaining government-wide financial statements will be provided by August 7. Page 152 of 160 10 2027-2028 Budget Development Budget Schedule and City Council Retreat A revised, slightly compressed budget schedule has been proposed to Harold and Richa. This updated timeline successfully positions the final budget for council approval on December 7, 2026. Staff is currently preparing high-level financial data for the August 21, 2026 City Council Retreat. This presentation will include: • Current 2026 year-to-date revenues and expenditures with a year-end forecast. • Preliminary 2027 and 2028 budgeted revenues and expenditures. • A clear projection of the potential structural deficit or funding gap facing the City. Indirect Cost Allocation Plan Update To ensure accurate financial modeling, Finance is engaging FCS Group to update the City’s ensure central update will This last revised in 2021. Plan, Allocation Cost Indirect which was service costs are properly and equitably distributed across departments, funds, and utilities based on current operational tasks. Crucially, this plan will serve as a vital tool for managing the City’s new operational oversight of the Pasco Aquatic Center under the Interlocal Agreement (ILA) with the Pasco Public Facilities District. to ensure establish the structure needed will It f services City recovery for cost ull dedicated to the facility. This project is estimated to cost approximately $65,000 and will be fully absorbed within the Finance Department’s existing 2026 budget allocation. Utility Billing Staffing Update Darizza Gutierrez was the successful candidate for the open Accounting Assistant position that opened up as in our Billing Darizza was Utility Garcia became a Staff Melody Accountant. department as a UB Representative. We are excited to see her grow in this new role and bring her attention to Accounting function as Accounts an to and fun personality detail the Payable Assistant. Darizza has been with the City since May of 2024. Summer Water Shut-Off We are currently in the annual summer "hot months" period during which water service cannot be disconnected nonfor -staff to outreach proactive continue Utility RCW. per payment Billing delinquent customers, encouraging payment and establishing communication while complying with seasonal shut-off restrictions through September. Organizational Culture & Staffing Transitions Staff Accountants On August 3, Suzie Benitez returned to the City as a Staff Accountant, a position she previously held. Her immediate priority is supporting the 2027–2028 budget development process. Over the next two weeks, she will be fully transitioned into her long-term fund and department assignments. One Staff Accountant vacancy remains open. We are currently evaluating our overall operational needs and budget outlook to determine whether to fill, reclassify, or hold this position vacant. Team Culture Overall team morale continues to strengthen as we onboard and train new personnel, which will improve work-life balance across the department. As part of our professional development efforts, staff Tto Understand, currently 2 (Seek studying Habit is First Be Understood) to hen from Stephen R. Covey's The 7 Habits of Highly Effective People. We are seeing a steady increase in Page 153 of 160 11 staff engagement through our monthly mandatory Finance Department meetings. We remain proud to serve the residents of Pasco and appreciate your continued support as we modernize our services, strengthen financial operations, and build a high-performing team. Community & Economic Development Deputy Director, Craig Raymond July 2026 Council Initiatives: Cannabis license/land-use revisions Essential Public Facilities moratorium and new regulations draft Data Center moratorium and new land-use regulation draft Development Projects of Note: Visconsi Right-of-way and Master Site Plan review Elevated Development Agreement Multiple residential Preliminary and Final Plats being processed currently 1 annexation initiated Ongoing Major Projects: Comp Plan update Land-use code update Critical Areas ordinance update Transportation System Master Plan update Fee Study New permit types being built and implemented on the portal Code Enforcement: • Complaints received - 203 • Cases opened in July - 140  Animal issues - 3  Blowing dust - 20  Commercial - 25  Residential - 55  BDI issues - 1  Rental - 1  Noise - 1  Public ROW issues - 20  Building code - 8  Dangerous building - 6 • Cases closed - 88 • Cases to be followed up on - 63 • Cases that went to Code Board – 0 • Voluntary correction agreements - 6 • Backlogged Complaints pending verification - 96 • Current total open cases - 263 Contacts: • Counter/Hallway contacts – 84 • Field contacts (non-code case related) - 41 Page 154 of 160 12 • Calls received (ring central and cell) : 934 Much like the previous month the Code Enforcement officers for the month of July 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 have become an asset with talking to property owners regarding complaints received regarding their specific hazard and/or nuisance such as dry weeds, unkept properties, RV placement, unlicensed vendors and etc. Staff continue to receive a large number of complaints regarding dust control, unlicensed vendors, fire hazards, and homeless encampments. Each complaint is address by the order they are received and determined by the level of severity. CEO’s have attempted to be more proactive by using VCA’s (voluntary correction agreements) in Lew of the Code Enforcement Board. This allows the CEO to work more with the property owner allowing 30, 60 and 90 days to come into compliance (depending on the severity) rather than immediately assessing a penalty. This trial has been successful allowing the property owner to read and acknowledge the time frame and consequences if the timeframe is not met. This has left the Code Enforcement Board, when needed with the “worst of the worst”. WINS for the Code Enforcement Officers and the City 6605 W. Argent Rd. has had violations with rubbish, junk, vehicles, dead animals, and 7+ dogs for multiple years increasing greatly within the past 12 months. Its prominent location makes it very visible and therefore the subject of many complaints over the years. Many officers have worked with the property owner Traci Sheets, the most recent was Officer Mendoza who paid several visits to her property for compliance. This property has now been completely cleaned up and has been sold to Smack Dab LLC. Page 155 of 160 13 Also, 106 N 5th has been an attractive nuisance for more than a decade, with homeless people trespassing and even squatting residing within. Code Officers have worked with the owner Jamie Wise and her representatives to keep it boarded up whenever the house got broken into. After many years of struggle with the transients downtown, the owners have sold the property and has been scheduled for demolition. Page 156 of 160 14 These are just a few of the large win’s staff has accomplished for the month of July. Public Works Director, Maria Serra August 2026 City Manager’s Report - Public Works Department 1 . Key project updates The following are updates for a select few capital projects approaching critical milestones: Lewis Street Pavement Preservation and Ainsworth Avenue Pavement Preservation Projects– Final design and right-of-way acquisition push is happening in August, with construction expected to occur in 2027. Project scope is to mill and fill 2 inches of asphalt and upgrade non-compliant ADA curb ramps for both corridors. Page 157 of 160 15 Citywide Injury Minimalization & Speed Management Implementation project – Final design happening in August with construction funds anticipated to be obligated in September. Project includes addition of approximately 750 signs citywide, with vast majority of those being speed limit signs to meet regulatory requirements. A couple of corridors (i.e. West Lewis Street) will include a slight reduction in speed limit based on recommendations of the engineering study as part of this project. Construction phase is anticipated in late 2026/early 2027. ReplacementWTP Butterfield project - project Improvements Station Pump Water Raw The design has progressed to 90% and is on schedule for winter advertisement for construction. A required Pilot Study phase will begin later this fall as part of a DOH requirement in design efforts for the WTP replacement. Pilot Study will take approximately 10 months to complete, while design of the WTP can proceed to 30%. Grant application for preconstruction funds in support of land acquisition was submitted to the Washington State Public Works Board. Road projectOverpass 76 – in Currently review fee with the selected and scope of stage consultant that will be providing professional services to the City. Professional services agreement is expected to be presented to City Council for approval in September with design kickoff expected shortly after. Irrigation System Expansion project – Construction is expected to get started in fall of 2026, as soon as the irrigation season concludes, specifically for South Columbia Basin Irrigation District (SCBID). Contract and continued has been executed communications are occurring between City, SCBID, and developer’s team for coordination of the work and timing requirements. Final steps of land acquisition process are scheduled. Harris Road Realignment project – Design is currently working toward 90% mark and is still on schedule to be fall this ready ad and 2027.in constructed projectThis by Road Harris realigns connecting Road 103 between Harris Road and Sandifur Parkway, completely eliminating the intersection of Harris and Broadmoor. Road 40 East extension project – Design is at 60%. The last 2 months have been dedicated to coordinating with Franklin PUD on evaluating alternatives for relocation of a series of overhead and underground facilities. relocation infrastructure power/fiber impacts Overall of is estimated to almost double the original project cost, including easement negotiations and FPUD infrastructure relocation. Evaluation is underway to identify whether this financial impact can be absorbed. Lewis Street Underpass project - Design is at 90%. Recurring weekly coordination meetings with Burlington Northern Santa Fe (BNSF) are in place to aid the review and approval process, detailed coordination of anticipated requirements. The project is expected to be advertised for bids in fall 2026 with construction to occur in early 2027. Staff has made contact in person with Downtown businesses and provided project overview and tentative schedule. outreach efforts will continue as the timeline for construction is solidified. Additionally, staff and its consultant have also exchanged correspondence and phone calls with a has Staff segments. balustrades additional to seeking leader group community preserve deemed this request infeasible due to time constraints. Page 158 of 160 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 159 of 160 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 160 of 160