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HomeMy WebLinkAbout2012.02.27 Council Workshop Packet AGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 p.m. February 27, 2012 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Zoning Code Amendments (MF#CA2012-003): 1. Agenda Report from Rick White, Community & Economic Development Director dated February 22,2012. 2. Submittal letter from Goodwill industries. (b) Interlocal Agreement with the Pasco School District: 1. Agenda Report from Rick White, Community and Economic Development Director dated February 22, 2012. 2. Proposed Interlocal Agreement. (c) School Impact Fees: 1. Agenda Report from Rick White, Community and Economic Development Director dated February 23,2012. 2_ Proposed Ordinance. 3. Memorandum to the City Manager. 4. School District Capital Facilities Plan 2011-2017.* 5. Public Correspondence.* *(References previously provided to Council; copy available for public review in the Planning office, the Pasco Library or on the City's webpage at pt� //www.p-asco- wa, ov/cit;coucilre s.) (d) Road 68 Corridor Study Presentation. (NO WRITTEN MATERIAL ON AGENDA) Presented by Ahmad Qayoumi, Public Works Director. (e) Amendment No. 1 to Professional Services Agreement with HDR Engineering, Inc., - Wastewater Treatment Plant Improvements: 1. Agenda Report from Ahmad Qayoumi,Public Works Director dated February 22,2012. 2. Amendment No. 1 to September 19, 2011 Professional Services Agreement. (f) Professional Services Agreement with HDR Engineering, Inc., - Wastewater Treatment Plant Improvements,Construction: 1. Agenda Report from Ahmad Qayoumi,Public Works Director dated February 22,2012. 2. Professional Services Agreement. 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT REMINDERS: 1. 4:00 p.m., Monday, February 27, Ben-Franklin Transit Office—Hanford Area Economic Investment Fund Committee Meeting. (COUNCILMEMBER AL YENNEY, Rep.; SAUL MARTINEZ, Alt.) 2. 9:30 a.m.,Wednesday, February 29, Lacey—WA Farm Bureau Building—Columbia River Policy Advisory Group Meeting. (MAYOR MATT WATKINS) 3. 5:30 p.m.,Thursday,March 1,Parks &Rec. Classroom—Parks and Recreation Advisory Board Meeting. (COUNCILMEMBER SAUL MARTINEZ,Rep.,MIKE GARRISON, Alt.) AGENDA REPORT FOR: City Council ; February 22, 2012 TO: Gary Crutchfie Manager Workshop Mtg.: 2/27/12 a FROM: Rick White, Community& Economic Development Director 2_�q SUBJECT: Zoning Code Amendment(MF# CA2012-003) I. REFERENCE(S): I. Submittal letter from Goodwill Industries Ii. ACTION REQUESTED OF COUNCIL I STAFF RECOMMENDATIONS- 2/27: DISCUSSION ITT. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. Goodwill Industries has requested that the City review the current zoning regulations that restrict retail sales of second-hand goods to the C-3 (General Business) and Industrial zones. B. The City enacted regulations restricting the retail operation of second-hand stores in 1990 to combat loss of property values and economic decline in the Central Business District and sustain the viability of C-1 zoned properties in and around the Downtown and at major intersections. C. The restrictions included prohibiting second-hand stores outright in C-1 (Retail Business), C-2 (Central Business), BP (Business Park), "O" (Office) and CR (Regional Commercial) zones and limiting second-hand stores to C-3 or Industrial zones with a minimum 1000 foot separation from other second-hand stores. D. The zoning restrictions were also intended to minimize stores used as repositories for junk and unwanted items, reduce the "clustering" of second-hand stores with marginal economic operations or poor business practices and avoid a public perception detrimental to private investment in particular areas of the City. V. DISCUSSION: A. Although the submittal letter from Goodwill Industries asks for a "special permit" for second-hand retail operations in a C-1 zone, the necessary mechanism to consider this would be an amendment to the Zoning Code. At present, the Zoning Code contains an outright prohibition of second-hand stores in C-1 zones without the opportunity to allow such through a special permit application. B. Staff would benefit from Council discussion of this issue, in particular, if Council has any interest in forwarding this matter to the Planning Commission for consideration through the code amendment process. 4(a) Goodwill Industries of the Columbia Executive Offices 815 N. Kellogg Street, Suite A Kennewick, WA 99336 February 14, 2012 RECEIVE FEB 15 2012 Mr. Rick White Director of Community Development COMMUNITY&ECONOMIC DEVELOPMENT City of Pasco 525 N. 3rd Avenue Pasco, Washington 99301 Dear Mr. White: Goodwill Industries of the Columbia is requesting the consideration of the City of Pasco for a special permit allowing a second hand store to operate in a C1 commercial business district. Since 1961, Goodwill has provided vocational rehabilitation services to individuals with disabilities and operated a thrift store from our 307 West Columbia Street, location. Since incorporating as a member agency of Goodwill Industries international in 1969, we have expanded our reach to include 13 counties in the North Central and Southeast region of Washington and Northeast Oregon. Goodwill is interested in expanding its retail footprint in Pasco by opening a second retail location. However, current zoning codes do not allow second hand stores to operate in a C1 commercial business district. Having been a member of the Goodwill staff during the time the moratorium was put in place, I understand why the zoning code was enacted, but believe our request today is well worth new consideration and further discussion. For more than 50 years, Goodwill has been providing job-skills training to individuals with significant disabilities and helping people with other barriers to employment go to work throughout our community. To accomplish our mission of helping people, Goodwill collects,transports, processes and sells donated household goods received from the public. Using the clothing and household items received from the public, Goodwill sorts, hangs, tickets, merchandises and sells products to the public while providing job-skills training preparing people for employment. Additionally, net revenues directly support our education,training and employment services. Goodwill operates seven retail and community training centers in the cities of Pasco, Kennewick, Richland, Surinyside, Wenatchee, Walla Walla and Hermiston, Oregon. Of our retail and community training centers, Goodwill owns five of the seven properties. In each city where we operate,we have been welcomed as a positive member of the business community and as a partner in community events and activities. We will do the same in Pasco. EJ Your Donations -Building Job Skills-Changing Lives, Telephone: (509) 735-7238 Fax: (509) 735-8691 Goodwill Industries Page 2. At our current West Columbia Street location (including our warehouse operation), Goodwill employs 57 full time employees and serve 36 individuals with significant disabilities, During 2011, Goodwill invested $1,600,000 in downtown Pasco bullding a warehouse to support our retail operation and improved a parking lot for our customers. The Pasco store is our highest volume retail store and the warehouse is the transportation hub of our operations fleet. Through market research and consultation with other Goodwill organizations, we know that opening a store in a C1 commercial business district will help us grow our business. Data suggests that buildings with a minimum of 20,000 sq.ft. located on or near a major arterial; with a population density of 75,000 households within a 10 minute drive is sufficient to double our current sales. At this time, Goodwill is prepared to invest more than $2 million to purchase and renovate a property that meets these criteria and create a world class retail store and community training center. We are prepared to make sure that this facility creates the type of appeal, success and image that represents Goodwill today and into the future and is one that the City and community can be proud of. So what will take place at the existing Pasco store location? Goodwill is interested in the developing the 307 W. Columbia St. property into an "outlet"store. The outlet concept is a "last chance" opportunity for shoppers to purchase items by the pound before the goods are recycled as salvage. Again, through market research, we know the market for this type of retailing exists. By opening an "outlet" store,we can further support Goodwill's mission to provide job-training and employment to individuals with disabilities while creating additional jobs for people in our community. We project this operation will create 15 to 20 new jobs in Pasco. Goodwill's Board of Director's fully support our plans and has encouraged staff to further discuss this subject with City of Pasco off lclals. I would appreciate the opportunity to have members of our staff meet with you to discuss our plans,the benefits to Goodwill and the Pasco community and how we may possibly move forward. Sin n2 y, x Scott J.Shinsato Associate Executive Director AGENDA REPORT FOR: City Council February 22, 2012 TO: Gary Crutch) pity Manager Workshop Mtg.: 2/27112 FROM: Rick White, Community and Economic Development Director SUBJECT: Interlocal Agreement with the Pasco Scbool_District 1. REFERENCE(S): 1, Proposed Interlocal Agreement 11. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 2127: DISCUSSION: I1I. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. In January of 2011 the Pasco School District informed the City Council that the District no longer had the capacity to accommodate increased student enrollment due do residential growth in the community. During the 10 year period between 2000 and 2010 the District's enrollment increased by 71%, an average of 620 students per year, enough to fill a new elementary school every year. B. At the time the School District informed the City there was no space in its schools to serve additional students the District asked both the City and County to consider including the District's Capital Facilities Plan within their Comprehensive Plan and adopt a school impact fee. C. In response to the School District's request, Council incorporated the District's Capital Facilities Plan into the City's Comprehensive Plan at the Council Meeting of February 21, 2012. That action constitutes the basis for the City to implement a school impact fee. V. DISCUSSION: A. An interlocal agreement is necessary to identify the duties and responsibilities of the City and the District regarding implementation of a school impact fee. B. The proposed interlocal agreement identifies the major responsibilities of the District which include updating their Capital Facilities Plan, limiting the activities for which the impact fees can be used, maintenance of proper accounting for the collection and use of the fees and reporting responsibilities of the District to the City. C. The proposed interlocal agreement further identifies the duties of the City, which include enacting a school impact fee ordinance, determining the appropriate fee for applicable development, establishing a fund for deposit of the impact fees and providing an appeal system. D. The proposed interlocal agreement also defines the procedures and responsibilities for audits and mutual indemnification of the City and the District for activities that may result in legal action. 4(b) WHEN RECORDED RETURN TO: City of Pasco, Washington 525 North 3rd Pasco WA 99301 INTERLOCAL AGREEMENT Between CITY OF PASCO and PASCO SCHOOL DISTRICT NO. 1 THIS INTERLOCAL AGREEMENT is made and entered into this _ day of , 2012, by and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as "City" and the Pasco School District No. 1, hereinafter referred to as "District." WHEREAS, the City has been empowered by State law to provide for the division of real property for the purpose of residential housing, which such plans provide adequate provisions for schools and other public facilities. The City is likewise empowered through the Growth Management Act (Chapter 36.70A RCW) to provide public facilities and infrastructure to be in place to meet the demands of new population growth, and by authorization by RCW 82.02.050 through 82.02.100 to access impact fees on the development activities as part of the financing for public facilities to serve the needs of a growing population; and WHEREAS, the District has experienced extraordinary increases in its student enrollment as determined by letter of January 11, 2011, that the District does not have space in its schools to serve families from new developments within the City and, therefore, cannot assure that there are adequate school facilities to serve the demands incident to new developments within the City without additional new sources for funding new schools; and WHEREAS, the District has adopted on December 13, 2011, its 2011-2017 revised Pasco School District Capital Facilities Plan which incorporates funding in part through the assessment of a school impact fee by the City; and lnterlocal Agreement City/ Pasco School District No. 1 (2/21/12) - 1 WHEREAS, the District has requested the City adopt the District's capital facilities plan as a part of the City's comprehensive plan; and WHEREAS, the City has conducted public meetings and hearings before its Planning Cormnission and the City Council regarding the District's request as a portion of the City's update of its comprehensive plan; and WHEREAS, as a condition of its adoption of the District's capital facilities plan as a part of the City's comprehensive plan and the assessment of impact fees as provided under that plan, the parties desire to enter into an Interlocal Agreement to set forth the duties and responsibilities of the parties with regards to implementation of the school impact fee program, as well as indemnification responsibilities for any legal challenges to that program. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1. ResponsihiIities of the District. The District shall by its authorized representative, to agree to the following terms and conditions upon the City's adoption of a School Impact Fee Ordinance: A. Submit an authorized implementation of the Pasco School District No. 1 Capital Facilities Plan 2011-2017 for inclusion within the City's Comprehensive Plan 2012 amendments warranting the factual sufficiency thereof, and its compliance with applicable laws. B. Submit information, evidence and testimony to the City to support the adoption of a School Impact Fee Ordinance with the assessment and collection of school impact fees, including the District's capital facilities plan, proposed impact fee schedule, and any other information required by the City's Ordinance. C. Bi-annually, submit to the City a six-year capital facilities plan or an update of the previously adopted plan, together with impact fee schedules which meet the requirements of Washington law and the City's School Impact Fee Ordinance commencing on , and submitted annually thereafter on or before the same date of each following year during the term of this Agreement. This shall include a report on school impact fees, and the School Impact Fee accounts showing the source and amount of all monies collected, earned, or received, and the public improvements that were financed in whole or in part by the impact fees. Interlocal Agreement City/ Pasco School District No. 1 (2/21/12)-2 D. Establish and maintain a procedure for receipt and processing of requests for adjustments, refunds or waivers, or appeals of the school impact fees including the determination of the value of dedication of lands for, improvements to, or new construction of any system improvements provided by the fee payer to the District. The District shall hear, consider, and comment to the City, for its consideration any applications for adjustment of the impact fees for any project based upon studies, data, calculations, and reports provided by the Developer; any requests for adjustment of the standard impact fee necessary to address unusual circumstances to void the impact fees being imposed unfairly. The District's final determination on such requests shall be transmitted to the City which may rely upon such determinations and the issuance of any permits for development activities. The District shall be responsible for defending the school impact fee including the District's responsibilities as set forth herein regardless of whether an appeal of the school impact fee is tiled with an appeal of the underlying permit. E. Establish and maintain School Impact Fee accounts as required by RCW 82.02.070, and PMC Chapter 3.133 (School Impact Fee Ordinance), and administer such fees and provide the City with all required notices. F. Properly expend and account for impact fees as required by RCW 82.02.050(4) and RCW 82.02.070(2). Such funds shall be used for public facilities improvements that will reasonably benefit the new development; and shall not be imposed to make up the deficiencies in the facilities serving the existing developments; and shall not be used for maintenance or operation. G. Impact fees may be spent for improvements, including but not limited to, facility planning, land acquisition, site improvements, necessary offsite improvements, construction, engineering, architectural, permitting, financing, grant matching funds and administrative expenses, applicable impact fees or mitigation costs, capital equipment pertaining to public facilities, and any other expenses which can be capitalized and are consistent with the capital facilities plans adopted by the City's amended comprehensive plan. H. Impact fees may also be used to recoup public facility improvements costs previously incurred to the extent that new growth and development will be served by the previously constructed improvements or incurred costs. I. In the event that bonds or similar debt instruments are or have been issued for the construction of public facilities or system improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities Interlocal Agreement City/ Pasco School District No. 1 (2121112)-3 or improvements provided are consistent with the requirement of this section, and are used to serve the new development. Public facilities plans causing impact fees for the purpose of assisting in the new provision of capital facilities or facility systems must clearly differentiate between funds used for new improvements and those funds used to correct existing deficiencies. J. Encumber and expend impact fees only as required in RCW 82.02.070(3) and where the District has extraordinary and compelling reasons for noncompliance with this statute, the District shall identify such reasons in written findings delivered to the City Council. K. Notify property owners of refunds available under RCW 82.02.080 and the processing and payment of any such refunds, together with any interest which may be due. L. Review and approve as to form, all covenants and declaration of restrictions as these documents are required by the School Impact Fee Ordinance to maintain exceptions from payment of school impact fees. In the event that such covenants and/or declarations of restrictions are violated, the District shall have the primary responsibility for enforcement. M. Maintain all accounts and records necessary to ensure compliance with this Agreement, the School Impact Fee Ordinance, and Chapter 82.02 RC W. N. Reimburse the City its actual costs incurred in the collection, administration, payment, accounting, and audit cost for the School Impact Fee. O. The District shall not impose, in addition to the School Impact Fee, a mitigation fee provided by Ch. 43.21C RCU' (SEPA) to assure that appropriate provisions are made for schools and school grounds incident to residential property development, 2. Responsibilities of the City. The City, by and through its authorized representatives, agree to ; A. Enact a School Impact Fee Ordinance as approved by the District, and attached as Exhibit A, to be effective on S. Amend its comprehensive plan including the adoption of the District's Capital Facilities Plan 2011-2017, and such amendments as may be provided thereafter, including modifications of the school impact fee schedule, Interlocal Agreement City/ Pasco School District No. 1 (2/21/12) -4 provided that such facilities plan, amendments and fee schedule are consistent with the law. C. As a portion of permitting development activities, the City shall: 1) Determine whether or not the residential development activity in the City is exempt from payment of the school impact fee as provided in that Ordinance. 2) Ensure that applicants for residential development activities have paid school impact fees in accordance with the fee schedules established hereby, and subject to credits, adjustments, and exemptions approved by the District prior to the issuance of any residential development activity permit. D. Establish and maintain a school impact fee fund into to which all school impact fees shall be deposited subject to monthly disbursement of such funds to the District. E. In the event the District fails to enforce such covenants or restrictions required in Section I.L. above, the City may enforce covenants or declarations and restrictions within the City which have been executed and recorded as a condition of an exemption of a development activity from school impact fees. When enforcement actions are appropriate, the City shall advise the District of such potential enforcement action, and the District shall determine whether to request that the City take enforcement action. Determinations for such actions shall be within the sole discretion of the City. F. Timely notification and acceptance of tender by the District of a judicial or administrative appeal of the school impact fees as provided in Section 3. G. Annually, following the report of the District, the City shall provide a report on the school impact fee accounts as required by RCW 82.02.070(1), detailing the fees received and the system improvements, financed in whole or in part by the fees. 3. Audit. A. The District's records and documents with respect to all matters covered by this Agreement shall be subject to inspection, review or audit, by the City or by other appropriate State agencies. lnterlocal Agreement City/ Pasco School District No. 1 (2/21/12)- 5 B. The District agrees to cooperate with any monitoring or evaluation activities conducted by the City that pertain to the subject of this Agreement. The District agrees to allow the City or appropriate State agencies and/or any of their employees, agents or representatives, to have full access to and the right to examine, audit, make excerpts or transcripts, and copies of documents during normal business hours, all of the District's records with respect to all matters covered by this Agreement The City shall provide the District no less than thirty (30) calendar days advance notice of its intent to conduct a physical audit. 4. Indemnification and Hold Harmless. A. The District is a separate municipal corporation, with the authority to adopt its capital facilities plan and to spend the school impact fees collected from the City from property owners/developers in the City. The District acknowledges that because the District gathers, collects, creates and interprets the data used to develop its capital facilities plan, that the District, not the City, is in the best position to ensure that is capital facilities plan conforms to the authorizing statutes and all other applicable law. The District further acknowledges that because the District will make its own discretionary decisions about how to spend the school impact fees from the City, that the District, not the City, is in the best position to ensure that its related actions conform to the authorizing statutes and all other applicable laws. With this in mind, the parties have agreed to indemnify the other as follows: 1) The District shall, at its own costs and expense, protect, defend, indemnify and hold harmless the City, its officers, employees and agents from any and all costs, claims, judgments or awards of damages, including attorneys' fees and expert witness fees, arising out of or in any way resulting from the acts or omissions of the District, its officers, employees or agents, relating to the District' implementation of the school impact fee program, performance of the duties set forth in Section l of this Agreement, or compliance with the School Impact Fee Ordinance, the authorizing statutes or applicable law, shall as may be amended from not to time. This indemnification by the District of the City includes, but is not limited to: a) The District's responsibility to refund any fees with interest, which are determined by a Court of competent jurisdiction to have been improperly paid, regardless of whether the City erroneously imposed and collected the school impact fee amount; lnterlocal Agreement City/ Pasco School District No. 1 (2/21/12) - 6 b) The District's agreement not to impose any liability on the City for the City's failure to collect the proper fee amount or any fee from an applicant conducting a development activity, provided that the City shall make reasonable attempts to collect such fee. B. The District shall, at its own costs and expense, protect, defend, indemnify and hold harmless the City, its officers, officials, employees and agents, from any and all costs, claims, judgments or awards of damages, including attorneys' fees and expert witness fees, resulting from any challenge to the constitutionality of legality of the School Impact Fee Ordinance or the fee schedule or determination for any individual permit application. Once the District assumes defense or any appeal relating to the School Impact Fee Ordinance, fee schedule or individual determination, the District shall not be responsible to reimburse the City for any of the City's attorneys' fees or litigation costs incurred thereafter, C. The District further agrees that the District shall, at its own cost and expense, defend, indemnify and hold harmless the City, its officers, officials, employees, and agents from any and all costs, claims, judgments or awards of damages, including attorneys' fees or expert witness fees arising out of or in any way resulting from the District's failure to refund impact fees, or interest on such impact fees, including but not limited to a determination that impact fees from development activity that was not completed are not refundable because the funds were expended or encumbered by the District, whether or not the District's determination was made in good faith; provided, however, that once the District assumes defense of any such claim or action the District shall not be responsible to reimburse the City for any of the City's attorneys' fees or litigation costs thereafter. D. The City shall, at its own cost and expense, protect, defend, indemnify and hold harmless the District, its officers, employees, or agents from any and all cost, claims, judgments, awards, attorneys' fees or expert witness fees arising out of or in any way resulting from the acts or omissions of the City, its officers, officials or employees relating to the performance of the City's responsibilities as set from in Section 2 of this Agreement, The City's decision to adopt a School Impact Fee Ordinance using the information provided by the District (either initially, or as a result of its bi-annually report,) shall not be the basis for City liability, and the parties agree that if the City relies upon the information provided by the District initially or annually) in the adoption of a School Impact Fee Ordinance or any subsequent fee schedule, the City shall not be required to defend any appeal or challenge to the District's information data, use of school impact fees, calculation of fees or decisions on Interlocal Agreement City/ Pasco School District No. 1 (2/21/12)- 7 reconsideration/appeal. Once the City assumes defense of any claim or action, the City shall not be responsible to reimburse the District for any of the District's attorneys' fees or litigation costs incurred hereunder. E. The duties of the parties to each other under this Section shall not be diminished or extinguished by the prior termination of this Agreement, pursuant to Section 5. S. Effective Date and Termination. A. The effective date of this Agreement shall be B. Either party may terminate this Agreement, without cause, in whole or in part, upon six months advance written notice which such termination becoming effective upon the repeal or invalidation of the City's School Impact Fee Ordinance. All other obligations under this Agreement shall remain in effect until both of the following conditions have been satisfied: 1) The City or the District provides written notice that this Agreement is being terminated; and 2) The District no longer retains unexpended or unencumbered impact fees and interest earned thereon. The obligations under Section 4, Indemnification, shall be continuing and shall not diminish or be extinguished by the termination of this Agreement. C. The District shall have the duty to ensure that upon termination of this Agreement, any remaining unexpended or unencumbered impact fees and interest earned thereon are either properly expended or refunded as required by law. D. Nothing herein shall limit, waive, or extinguish any right or remedy provided by this Agreement or by law that either party may have in the event that the obligations, terms and conditions set forth in this Agreement are breached by the other party. 6. Modification. No changes or modifications to this Agreement shall be valid or binding upon either party unless such changes or modifications are in writing and executed by both parties. 7. Integration. This Agreement, together with the School Impact Fee Ordinance and any definitions adopted by the City to implement the Ordinance, Interloeal Agreement City/ Pasco School District No. 1 (2/21/12)- 8 contains all of the terms and conditions agreed upon by the parties, No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to bind either party. S. Severability. In the event that any term or condition of this Agreement or the School Impact Fee Ordinance, or application of either to any person or circumstances is held invalid, such invalidity shall not affect other terms, conditions or applications of this Agreement which can be given effect without the invalid term, condition of application, To this end, the terms and conditions of this Agreement are declared severable. 9. Right of Other Parties. It is understood and agreed that this Agreement is solely for the benefit of the parties hereto and conveys no right to any other party. 10. Disputes. In the event of a dispute arising between the parties regarding the enforcement, breach, or interpretation of this Agreement, the District's Superintendent and the City's City Manager shall first meet in a good faith effort to resolve the dispute, however, with or without agreed meditation. Any remaining dispute shall be resolved by binding arbitration pursuant to RCW 7.04A, and the Mandatory Rules of Arbitration, with venue placed in Franklin County, Washington, and the arbitrator shall award to the substantially prevailing party, judgment for its attorney fees and costs against the other. In the event of de nova review, both parties waive their rights to a jury trial. I1. Interlocal Agreement Provisions. This Agreement is entered into pursuant to RCW 39.34 as an Interlocal agreement between the parties. It is not intended that a separate legal entity shall be established to conduct the cooperative undertaking nor it the acquiring or holding or disposing of real personal property anticipated. This City's City Manager and the District's Superintendent are designated as co-administrators of this Agreement. This Interlocal Agreement shall be filed or placed on the City's and the District's website as provided by RCW 39.34. 12. Waiver, Waiver of any default in the perfonnance of this Agreement shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of this Agreement. IN WITNESS WHEREOF, the undersigned has full authorization on behalf of the parties, have executed this Agreement on the year and date set forth above. CITY OF PASCO, WASHINGTON PASCO SCHOOL DISTRICT NO. 1 Interlocal Agreement City/ Pasco School District No. 1 (2/21/12)- 9 Matt Watkins, Mayor Sherry Lancon, President Attest; Debbie Clark, City Clerk Approved as to Form. Leland B, Kerr, City Attorney lnterlocal Agreement City/ Pasco School District No. 1 (2/21/12) - 10 STATE OF WASHINGTON ) : ss. County of Franklin ) On this day personally appeared before me Matt Watkins, Mayor of the City of Pasco, Washington, to be known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this day of , 2012. NOTARY PUBLIC in and for the State of Washington Residing at: My Commission Expires: STATE OF WASHINGTON ) ss. County of Franklin ) On this day personally appeared before me Sherry Lancon, President of Pasco School District No. 1, to be known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that she signed the same as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this day of , 2012. NOTARY PUBLIC in and for the State of Washington Residing at: My Commission Expires: Interfocal Agreement City/ Pasco School District No. 1 (2/21/12) - I 1 AGENDA REPORT FOR: City Coun it February 23, 2012 TO: Gary Crutchfiel, ; alter Workshop Mtg.: 2/27/12 FROM: Rick White, Community and Economic Development Director 1� SUBJECT: School Impact Fees I. REFERENCE(S): 1. Proposed Ordinance 2. Memorandum to the City Manager 3. School District Capital Facilities Plan 2011-2017* 4. Public Correspondence* *(References previously provided to Council; copy available for public review in the Planning Office, the Pasco Library or on the City's webpage at http://www.oasco- wa.gov/citycouncilreports. II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 2/27: DISCUSSION: III. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. In January of 2011 the Pasco School District informed the City Council that the District no longer had the capacity to accommodate increased student enrollment due do residential growth in the community. During the 10 year period between 2000 and 2010 the District's enrollment increased by 71%, an average of 620 students per year, enough to fill a new elementary school every year. B. At the time the School District informed the City there was no space in its schools to serve additional students the District asked both the City and County to consider including the District's Capital Facilities Plan within their Comprehensive Plan and adopt a school impact fee. C. In response to the School District's request, Council incorporated the District's Capital Facilities Plan in the City's Comprehensive Plan at the Council Meeting of February 21, 2012. That action constitutes the basis for the City to implement a school impact fee. V. DISCUSSION: A. The School District is at its physical and funding capacity limits for new classroom space and, while mitigation through the SEPA process will address the requirements of RCW 58.17.110, the District would prefer developers mitigate impacts to the schools through payment of a school impact fee as recommended by the Planning Commission. The current system for review of new development through the SEPA process creates a great deal of uncertainty and inequity in the development process. Essentially RCW 58.17.1 10 is creating a moratorium on new development since the law does not permit the City to approve new subdivisions when the School District does not have the capacity to accommodate new students. This results in an inequity between existing lots and lots created through new plats. New subdivisions therefore would be paying a higher share of the costs of providing school facilities while development on existing lots makes no contribution to the provision for schools. Hence the preference for an impact fee that would apply equally to all development that impacts the school system. 4(C) B. The impact fee calculation contained in the Capital Plan follows a recognized and tested formula in the State of Washington. It is identical to the fee calculations used by most public entities. The School District has provided their recommended fee schedule of 54,683 for a single family home and $4,525 for a multi-family unit. The final impact fee will be the result of Council action on the proposed impact fee ordinance. C. There has been discussion about moving the point of collection of the school impact fee from the building permit stage (as with park and/or traffic fees) to the "closing" of the sale of the home. The rationale for the delayed payment of the school impact fee is to minimize or avoid the effect of each party involved in the construction and financing of the home adding their "percentage" to the final bill. For example, the real estate broker will add a 6% fee to the process, the builder will add a profit percentage of 15-20%, the bank financing the mortgage will charge "points" resulting in I% or 2% added to the home cost. if the impact fee is applied/collected at the point of closing the sale, it can avoid the inflation of various "add-on" percentages. Staff has provided a "deferral option" in the proposed ordinance that would allow this to occur (please see Reference 42). D. In discussions with the Home Builders Association, staff was advised that realtors, brokers and lenders would need approximately 30 days advance notice of the effective date of an impact fee ordinance to close out or finalize existing sales. E. Staff requests that Council determine the amount of the school impact fee and its effective date so the ordinance can be readied for formal action of the Council. ORDINANCE NO. AN ORDINANCE of the City of Pasco, Washington, Creating a New Chapter 3.133 "School Impact Fees"; and Creating a New Section 3.07.230 "School Impact Fees" WHEREAS, the City of Pasco is required by State law to determine that adequate provisions are made in each subdivision, short plat, and other division of property used for residential purposes, including the adequacy of schools and playgrounds; and WHEREAS, Pasco School District No. 1 has by letter of January 11, 2011, placed the City on notice that due to escalating student population, it is unable to accommodate additional students that are incident to new developments of residential housing and has by Resolution No. 809 adopted its Pasco School District Capital Facilities Plan demonstrating the need for additional classrooms to meet the anticipated demand of students residing within the new development areas of the City; and WHEREAS, the District has requested that its Capital Facilities Plan be adopted and incorporated as a public facilities within the City's Comprehensive Plan; and WHEREAS, the District's Comprehensive Plan provides for the imposition of an impact fee as permitted by law to offset in part the costs of school facilities necessary to meet a growing population; and WHEREAS, the City has amended its Comprehensive Plan with the adoption of the District's Capital Facilities Plan which, to effectuate, requires the implementation of additional source of funding through an impact fee to meet the demands for schools caused by new residential development; and WHEREAS, the Pasco Planning Commission has conducted public hearings to determine whether the City should adopt the District's Capital Facilities Plan as a part of its Comprehensive Plan, including the implementation of that Plan through an impact fee; and WHEREAS, the City Council after due consideration has adopted the Amended Comprehensive Plan incorporating the District's Capital Facilities Plan with impact fees as a means of implementation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That Chapter 3.133 entitled "School Impact Fees" of the Pasco Municipal Code, shall be and hereby is created and shall read as follows: School Impact Fees Ordinance 2122/12 Draft- 1 Chanter 3.133 SCHOOL IMPACT FEES Sections: 3.133.010 Purpose. 3.133.020 Definitions. 3.133.030 Assessment of Impact Fees. 3.133.040 School Impact Fee Deferral Option, 3.133.050 Exemptions 3.133.060 Permitted Adjustments. 3.133.070 School Impact Fee Fund. 3.133.080 School Impact Fee Refunds. 3.133.090 Interlocal Agreement. 3.133.100 Annual Review. 3.133.010 PURPOSE. The City Council of the City of Pasco hereby finds that the City has sustained significant population growth and anticipates that growth to continue into the future. Pasco School District No. 1 has determined that it does not have sufficient resources to meet the students anticipated by this additional growth, and that a means by which thus new growth should pay a proportionate share of the costs of developing new facilities is needed. Therefore, pursuant to RCW 82.02, the City Council adopts a school impact fee to address identified impacts of new residential development on schools and to ensure that new development bears a proportionate share of the costs of the capital expenditures necessary to meet demands for schools to serve the best interest of the citizens of the City of Pasco. The provisions of this Chapter shall be liberally construed in order to carry out the purpose of the Council in establishing a school impact fee. 3.133.020 DEFINITIONS. For purposes of this Chapter, the following terms shall have the indicated meanings: A) "Boeckh index" is a construction trade index of construction costs for various kinds of buildings; it is adjusted annually. B) "Capacity" means the number of students the District's facilities can accommodate district-wide,based on the District's standard of service, as determined by the District. C) "Capital facilities plan" means the Pasco School District No. 1 Capital Facilities Plan 2011 - 2017, and as hereafter amended. D) "Capital improvement" means land, improvements to Iand, structures and relocatable structures (including site planning, acquisition, design, permitting and construction), initial furnishings and selected equipment. Capital improvements have an expected useful life of at least ten (10) years. Other capital costs, such as motor vehicles and motorized equipment, School Impact Fees Ordinance 2122/12 Draft-2 computers and office equipment, office furnishings, and small tools are considered to be minor capital expenses and are not considered capital improvements. E) "City" means the City of Pasco. F) "Classrooms" means educational facilities of the District required to house students for its basic educational program. The classrooms are those facilities the District determines are necessary to best serve its student population. Specialized facilities are identified by the District, including but not limited to gymnasiums, cafeterias, libraries, administrative offices,and childcare centers, shall not be counted as classrooms. G) "Construction cost per student (CS)" means the estimated costs of construction of a permanent school facility in the District for the grade span of school to be provided, as a function of the District's design standard per grade span. H) "Developer"" means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed. I) "Development activity" means any residential construction, including the placement of a mobile home, or expansion of a building, structure or use, any change in use of a building or structure, or any change in the use of land that creates additional demand for school facilities. J) "District" means Pasco School District No. 1. K) "Elderly" means a person aged 55 or older. L) "Encumbered" means to reserve, set aside, or otherwise earmark the impact fees to pay for commitments, contractual obligations, or other liabilities incurred for public facilities as set out in the adopted capital facilities plan. M) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for school facilities needed to serve new growth and development that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the school facilities, and that is used for such facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee. N) "Impact fee schedule" means the impact fees to be charged per dwelling unit of development that shall be paid as a condition of residential development with the City. O) "Interlocal agreement" means the agreement between the District and the City governing the operation of the school impact fee program and describing the relationship, duties and liabilities of the parties. School Impact Fees Ordinance 2/22/12 Draft-3 P) "Permanent facilities" means facilities of the District, including relocatable facilities. Q) "Program standard" means the standard adopted by the District which identifies the program year, the class size by grade span and taking into account the requirement of students with special needs, the number of classrooms, the types of facilities the District determines will best serve its student population, and other factors as identified by the District. R) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development. S) "Relocatable facilities (also referred to as Portables)" means any structure, transportable in one or more sections, that is intended to be used as an education space to meet the needs of service areas within the District, to provide specialized facilities, or to cover the gap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities. T) "Service area" means property within the City limits of the City of Pasco, including hereafter annexed territory, served by the Pasco School District No. 1. U) "Student factor (SF)" means the number derived to the District to describe how many students of each grade span are expected to be generated by a dwelling unit. Student factors shall be based on District records of average actual student-generated rates for comparable developments constructed over a period of not more than six (5) years prior to the date of the fee calculation; provided, that if such information is not available in the District, data from adjacent Districts, or districts with similar demographics or county-wide averages may be used. Student factors must be updated on an annual basis and separately determined for single- family and multifamily dwelling units and for grade spans. 3.133.030 ASSESSMENT OF IMPACT FEES. A) Fee Required. Each development activity within the service area, as a condition of approval, shall be subject to the school impact fee established pursuant to this Chapter. The school impact fee shall be calculated in accordance with the formula established in Attachment A, and as may be hereafter amended. The school impact fee due and payable, together with the administrative costs, shall be that amount designated in PMC 3.07.230. The school impact fee shall be required prior to the issuance of building permits, unless deferred as provided below. The amount of the school impact fee shall be based on the fee schedule in effect at the time of the building permit application. B) "pact Fee Limitations. 1) School impact fees shall be imposed for District capital facilities that are necessarily related to the development under consideration, shall not exceed a proportionate share of the costs of the system improvements that are reasonably needed School Impact Fees Ordinance 2/22/12 Draft -4 to the development, and shall be used for system improvements that will reasonably benefit the new development. 2) School impact fees must be expended or encumbered for permissible use within ten (10) years of receipt by the District. 3) To the extent permitted by law, school impact fees may be collected for capital facilities costs previously incurred to the extent that new growth and development will he served by the previously constructed capital facilities, provided, that school impact fees shall not be imposed to make up for any existing system deficiencies. 4) A developer required to pay a fee pursuant to RCW 43.021 C.060 (SEPA) for capital facilities shall not be required to pay a school impact fee pursuant to this Chapter and RCW 82.02.050 through RCW 82.02.090 for the same capital facilities. C) Credit for In-Kind Contributions. 1) A developer may request and the District may grant a credit against school impact fees otherwise due under this Chapter for the value of any dedication of land, improvement to, or new construction of any capital facilities identified in the District's capital facilities plan provided by the developer. Such requests must be accompanied by supporting documentation of the estimated value of such in-kind contributions. All requests must be submitted to the District in writing prior to the City's determination of the impact fee. 2) Where the District detennines that a development activity is eligible for a credit for a proposed in-kind contribution, it shall provide the City and the developer with a letter setting forth the justification for and a dollar amount of the credit, the legal description of any dedicated property, and a description of the development activity to which the credit may be applied. The value of any such credit may not exceed the impact fee obligation of the development activity application. 3) Where there is agreement between the developer and the District concerning the value of proposed in-kind contributions, the developer's eligibility for a credit, and the amount of any credit, the City may: a) Approve the request for credit and adjust the impact fee obligation accordingly;and b) Require that such contributions be made as a condition of development approval. Where there is disagreement between the developer and the District regarding the value of in-kind contributions, however, the City may render a decision that can be appealed by either party pursuant to the procedures provided in PMC 3.132.110 below. School Impact Fees Ordinance 2122/12 Draft- 5 D) SEPA Miti�,ation and Other Review. 1) The City shall review development proposals and development activity permits pursuant to all applicable State and local laws and regulations, including the State Environmental Policy Act (Chapter 43.21C RCW), the State subdivision law (Chapter 58.17 RCW), and the applicable sections of this Code. Following such review, the City may condition or deny development approval as necessary or appropriate to mitigate or avoid significant adverse impacts to school services and facilities, to assure that appropriate provisions are made for schools, school grounds, and safe student walking conditions, and to ensure that development is compatible and consistent with the District's services, facilities, and capital facilities plan. 2) Impact fees required by this Chapter for development activity, together with compliance with development regulations and other mitigation measures offered or imposed at the time of development review and development activity review, shall constitute adequate mitigation for all of a development's specific adverse environmental impacts on the school system for the purposes of this Chapter. Nothing in this Chapter prevents a determination of significance from being issued, the application of new of different development regulations, and/or requirements for additional environmental analysis, protection, and mitigation measures to the extent required by applicable law. 3.133.040 SCHOOL IMPACT FEE DEFERRAL OPTION. The developer, may, at its option, deposit into an interest-bearing account maintained by the City, an amount equal to the total school impact fees due as a result of the development activity. The fees shall be secured by the deposit, and the deposit refunded to the developer upon payment of the impact fee at the time of closing of the sale or refinance of each unit, the issuance of a certificate of occupancy of each unit, or 12 months from the date of issuance of the original building permit, whichever event first occurs. Upon payment of the school impact fee, the City shall refund to the developer their deposit, or the developer may elect to continue the deposit for security for the payment of school impact fees for other development activities. 3.133.050 EXEMPTIONS. The following development activities are exempt from the requirements of this Chapter. A ) Reconstruction, remodeling or construction of housing projects for the elderly, including nursing homes, retirement centers, assisted living facilities or other types of housing projects that are age restricted for the elderly, which have recorded covenants or declaration of restrictions precluding school-aged children as residents of those projects. This exemption does not include individual single-family homes on platted lots unless the subject plat has such age- restricted recorded covenants. Where such covenants have not already been recorded, but the exemption is sought, the City may require the recording of a covenant or recorded declaration of restriction precluding the property for other than exempt purposes. If property using this exemption is subsequently used for a nonexempt purpose, the school impact fees then in effect shall become immediately due and payable. School impact Fees Ordinance 2/22/12 Draft- 6 B) Rebuilding of lawfully established dwelling unit(s) destroyed or damaged by fire, flood, explosion, act of nature, or other accident or catastrophe; provided, that such rebuilding takes places within one (1) year after destruction and that no additional dwelling units are created. C) Alteration, expansion, reconstruction, remodeling, or rebuilding of existing single-family or multifamily dwelling units, including mobile or manufactured homes; provided, that no additional dwelling units are created. D) Condominium projects in which existing dwelling units are converted into condominium ownership and where no new dwelling units are created. E) Any development activity for which school impacts have been mitigated pursuant to a condition of a plat, short plat, planned unit development, binding site plan or similar approval to pay fees, dedicate land or construct or improve school facilities, unless the condition of that plat, planned unit development, short plat, or binding site plan approval provides otherwise. The condition of the plat, planned unit development, short plat, site plan, or other similar approval must have been secured prior to XXXX, 2012, the effective date of the fee imposition by the City and was actually imposed specifically as mitigation for impacts upon the District. Proof must also be submitted to the City that the required mitigation has been tendered for the development activity which would otherwise be subject to this Chapter. F) Any development activity for which school impacts have been mitigated pursuant to a voluntary agreement entered into with the District to pay fees, dedicate land or construct or improve school facilities, unless the terms of the voluntary agreement provide otherwise. The agreement and development activity application must also have been secured prior to XXXX, 2012, the effective date of the school impact fee. Proof must also be submitted to the City, prior to issuance of the development activity permit, that the required mitigation has been tendered for the development activity which would otherwise be subject to this Chapter. G) The replacement of a mobile home with another mobile home within an existing mobile home park. 3.133.060 PERMITTED ADJUSTMENTS. A) The current school impact fee may be adjusted by the Director of Community & Economic Development, if one of the following circumstances exists: 1) The developer demonstrates that an impact fee assessment was improperly calculated; or 2) Unusual circumstances demonstrated by the developer that adjustments to the school impact fee at the time the fee is imposed are necessary to accommodate unusual circumstances in specific cases to ensure that the impact fees are imposed fairly. School Impact Fees Ordinance 2/22/12 Draft-7 B) Developer demonstrates that the school impacts have been mitigated pursuant to a voluntary agreement entered into with the District upon the dedication of land or the construction or improvement of school facilities that warrant either a reduction, or exemption, from the payment of school impact fees. C) In all cases where the developer requests an adjustment or exemption from fees, the Director of Community & Economic Development shall consult with the District and the District shall advise the Director of Community & Economic Development prior to the Director making the final impact fee determination. The Director of Community & Economic Development, shall, consider in addition to the advice of the District, any studies, data, calculations and reports provided by the developer as a part of its request for a fee calculation adjustment prior to making the final impact fee determination. D) The developer, or the District, may appeal the final determination of the Director of Community & Economic Development regarding adjustments, exemptions, or credits to be applied to the school impact fee obligation in the same manner as provided in PMC 3.132.110 "Appeals." 3.133.070 SCHOOL IMPACT FEE FUND. There is established and created a special fund to be known as the "School Impact Fee Fund" and to which all school district impact fees shall be deposited. On a monthly basis, and in accordance with the current Interlocal Agreement between the City and the District, the City shall remit to the District the school impact fees collected in the preceding month. Impact fees received by the District shall be earmarked specifically and retained by the District in appropriate interest-bearing accounts. All school impact funds and interest shall be expended for the purpose as may be permitted by law. Annually, in accordance with the Interlocal Agreement, the District shall prepare and submit to the City a report on school impacts fees and the school impact fee account showing the source and amount of all monies collected, earned, received, and the public improvements that were financed in whole or in part by the school impact fees. 3.133.080 SCHOOL IMPACT FEE REFUNDS. A) The current owner of the property on which a school impact fee has been paid, may receive a refund of such fees if the school impact fees have not been expended or encumbered within ten (10) years of receipt of the school impact fees by the District, unless there exist an extraordinary or compelling reason for fees to be held longer than ten (10) years. Such extraordinary or compelling reason shall be identified to the City by the District in a written report. In any decision approving such extension, the City shall identify the District's extraordinary or compelling reasons for the fees to be held longer than ten (10) years in written findings. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. B) The District shall notify potential claimants by first class mail deposited in the United States postal service addressed to the current owner of the property as shown in the Franklin County tax records. School Impact Fees Ordinance 2/22/12 Draft-8 C) An owner' s request for a refund must be submitted to the District in writing within one (1) year of the date the right to claim the refund arises or the date that notice is given, whichever shall last occur. Any impact fees that are not expended or encumbered by the District in conformance with the capital facilities plan within these time limitations, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistently with the provisions of the law. Refunds of impact fees shall include any interest earned on the impact fees. D) A developer may request and shall receive a refund, including interest earned on the impact fees, when: 1) The developer does not proceed to finalize the development activity as required by statute, City code, or the applicable building codes; and 2) The District or the City has not expended or encumbered the impact fees in good faith prior to the application for a refund. In the event that the District or the City has expended or encumbered the fees in good faith, no refund shall be forthcoming. However, if within a period of three years, the same or subsequent owner of the property for which fees were paid, proceeds with the same or substantially similar development activity, the owner shall be eligible for a credit equal to the school impact fees paid and accrued actual interest. The owner must petition the City and the District in writing and provide receipts of impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof. The City after consultation with the District, shall determine whether to grant a credit, and such determinations may be appealed by foIIowing the procedures set forth in PMC 3.132.110 "Appeals." E) In the event the City seeks to terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which an impact fee was paid. Upon the finding by the City Council that any or all fee requirements are to be terminated, the City shall place a notice of such termination and the availability of refunds, in a newspaper of general circulation, at least two times, and shall notify all potential claimants by first class mail addressed to the owner of the property as shown in the Franklin County tax records. All funds available for refund shall be retained for a period of one (1) year. At the end of one (1) year, any remaining funds shall be retained by the City as to funds within its possession and the District as to funds within its possession, but must be expended for the original purposes, consistent with the provisions of this Chapter. This notice requirement shall not apply if there are no unexpended or encumbered balances within either the City's school impact fee fund, or the District's school impact fee account, 3.133.090 INTERLOCAL AGREEMENT. As a condition of the City's authorization and adoption of a school impact fee ordinance, the City and the District shall enter into an interlocal Agreement governing the operation of the school impact fee program, and describing the relationship and liabilities of the respective parties. The agreement must provide that the School Impact Fees Ordinance 2/22/12 Draft-9 District shall be liable and shall defend and hold the City harmless for all damages which may occur as a result of any failure by the District to comply with the provisions of this Chapter, Chapter 82.02 RCW, or other applicable law. The agreement must provide that the District shall be liable, hold the City harmless and reimburse the City for defense and payment of all claims, including claims for damages, which may occur or arise as a result of any failure or alleged failure to comply with this Chapter, Chapter 82.02 RCW, or other applicable law in the adoption, administration, or implementation of the school impact fee provided in this Chapter and any actions related to it. 3.133.100 ANNUAL REVIEW, A) On or before July 1 of each year commencing on July 1, 2013, the District shall prepare and submit to the City a report on the impact fees and the impact fee account, showing the source and amount of all monies collected, earned, or received, and the public improvements that were financed in whole or in part by the school impact fees, and such additional information as may be required under the Interlocal Agreement. B) On at least a biannual basis, the City Council shall review the information submitted by the District required.above. The review shaIl be in conjunction with any update of the capital facilities plan element of the City's comprehensive plan. The City Council may also at this time determine if an adjustment to the amount of the impact fee is necessary; provided, that any school impact fee adjustment that would increase the school impact fee shall require the submittal of a written request for the adjustment from the District concurrent with the submittal of its annual capital facilities plan. In making its decision to adjust the school impact fees, the City Council will take into consideration the quality and completeness of the information provided in the district's capital facilities plan and may decide to enact a fee less than the amount supported by the capital facilities plan. Section 2. SEVERABILITY. If any provision of this Ordinance, or its application to any person or circumstances is held invalid by a Court of competent jurisdiction, the remainder of this regulation or the application of the provisions of this Chapter to other parties or circumstances, shall not be affected. Section 3. That Section 3.07.230 of the Pasco Municipal Code shall be and hereby is created to read as follows: 3.07.230 SCHOOL IMPACT FEES. Fee/Charge Reference A) Single family residence $4,683.34 3.133.030 B) Multifamily residence $4,525.86 3.133.030 School Impact Fees Ordinance 2/22/12 Dram- 10 Section 4. This Ordinance shall take full force and effect on XXXX 2012. PASSED by the City Council of the City of Pasco, Washington, and approved as provided bylaw this day of _, , _„ --, 2012. Matt Watkins, Mayor Attest: Approved as to Form: Debbie Clark, City Clerk Leland B. Kerr, City Attorney School Impact Fees Ordinance 2122112 Draft- 11 Attachment "A" PASCO SCHOOL DISTRICT 25%reduction 2011 Impact Fee Calculation .S'!/:- I C'six1e) �5.11) �{I 1 1)" 1 x:,,.1 1-x 71,72 I ..1 . l:r L 1Y J il3 r i) Single Family Residence: Elementary MlddleSchool High School Formula UZ263,MGO 5000 S675.01>0 OC Faciutycost 2,244 300 15C Additional Ca paaly 532 203 05 $c 00 $4,500 OC Cost per Student(CS) 0 490 0 180 0 19C 61tudent Factor(SF) $14.491,37 50,00 sas&00 CS x SF SIW 17 51W 17 $180 17 Doeck Index 90 OD 11700 130 OC 06PI Sq Ft 8610% 6610% 13810% State Match Cliglghty% %28262 so 00 SO OC $late klatch Credit(SM) 58,208.76 $0.00 iair5.A0 CS x SF-SM ,01$174 Cost per Single Family Residence 00434 Average Interest Rate 0 525365058 Fax Credit Numerator 0 06637401 Tax Credt Denornlnator 7 97 5336432 Tax Credit MultlpN er(TCM) 3147,(00 OC Average Assessed Value(AAV) 1177159 W TCM x AAV 0 W24C Fax Levy Rate CrLR) $2,819 3C TCM x AAV x TLR a ITC) $8,244.7 Cost per Single Family Residence-Tax Credit S16511.1 25 4,6 reduction W $4,68134 Calculated Single Family Fee Amount TED Recommended Fee Amount Multi-Famiiy Residence: Elementary Middle School High School Famula 572263.60000 $000 567500000 Facilay Cost 2244 300 15C AWrliaralCapaody 532,203 05 30.00 54,500 0C Cost per S14dent(CS) 0.750 0 120 0 17C Student FactorlSF) $11,271,07 $0.00 5840,00 CS x SF $18017 51$017 5180'7 6ceck Index 9000 11700 130 O0 CSPI Sq Fl 8610% 66 10% 6610% State Match Ellglts6ty% $4886 48 $000 S000 State Match Credit(Sr?.) S8,3u4.6o 50.00 0.00 CS x SF-SM X A.5v Cost per Multi-Famity Residence 00434 Average Interest Rate 0529355056 Tax Gedt Numerator 0 06637431 Tax Credit Denomrnalol 7 879330462 Tax Credit Mud;pller(TCM) $46,600 00 Average Assessed Va:ue(AAV) 371650 68 TCM x AAV 000240 Tax Levy Rate(TLR) 5890'0 TCM x AAV x TLR=(TC) 034.48 Cost parWIH-FamilyResidenee-Tax Credit 51 508 62 25%reouckm(A) $4,525.66 Calculated Multi.Family Fee Amount T8D Recwtim nded Fee Amount Pasco School District Capital Facilities Plan Page 21 of 21 November 2011 MEMORANDUM DATE: February 22, 2012 TO: Gary Crutchfield, City Manager FROM: Rick White, Community and Economic Development Director SUBJECT: School District Impact Fees The Pasco School District's Capital Plan (incorporated into the City Comprehensive Plan on 2/21/12) outlines needed capital facilities over the next six years (two elementary schools and an early learning center). The Capital Plan also outlines funding of those necessary capital investments. A portion of the funding mix includes the assumption of an impact fee. The Capital Plan identifies how the impact fee is calculated for single-family and multi-family dwellings. The calculation provides for the actual cost per student for needed facilities and then provides a number of adjustments against that actual cost. These adjustments include: • Calculating the cost for "brick and mortar" facilities only for new students (an impact fee cannot be used to correct existing deficiencies), • Reducing the cost per student to account for the amount of State funding per square foot that is provided for new public educational facilities, • A factor for the payment of future property taxes (and capital bond costs) that will be paid by the owner of a new dwelling, • A reduction in the fee to insure that the fee does not pay for more than the impacts of new students. The calculation contained In the Capital Plan follows a recognized and tested formula in the State of Washington. It is identical to the fee calculations used by most public entities. There has been discussion about moving the point of collection of the school impact fee from the building permit stage (as with park and/or traffic fees) to the closing stage of the sale or occupancy of the home. Staff notes this may unnecessarily complicate closing home sales or fail to provide any measurable cost savings to the buyer. Deferral of the fees would require the developer to assign a lien against the property that would be fled and then removed upon closing — presumably through escrow. Lenders are 1 unlikely to place themselves in a second position if the fees are deferred until closing. This places the City in second position to collect the lien if the developer defaults on the underlying loan and creates a risk that may be unacceptable to the City. Lenders have also noted that a procedure such as this may unnecessarily complicate the closing procedure and provide an additional point of contention at a very late stage in the sale process, It is probable that the lender will require the developer to assume a larger project loan in order to pay the fee up front and avoid encumbering the property. Deferring the collection until sale or occupancy will also require administrative costs — Including recording and release fees that are properly obtained from the developer. It is expected that minimum fees for this to occur will be $289 ($124 for recording and release of a lien and $164 for a first stage title report). These costs appear to be more than any savings that may accrue if the point of collection is deferred in this manner, An option may be to require a cash deposit of the impact fee with the City into an interest bearing account when a building permit application is submitted. This will insure the fee will be paid if a default occurs, and will eliminate the need for a lien. The developer could also leave the deposit in the account for future building permits. An administrative fee should be charged for costs associated with tracking and processing the cash deposit, but this is expected to be far less than the costs associated with a lien against a property. This option has been included in the proposed ordinance. 2 AGENDA REPORT NO. 2 FOR: City Council February 22, 2012 C TO: Gary Crutchfiel. anager Workshop Mtg.: 02/27/12 FROM: Ahmad Qayourni; Public Works Director Regular Mtg.: 03/05/12 SUBJECT: Amendment No. 1 to Professional Services Agreement with HDR Engineering, Inc. - Wastewater Treatment Plant Improvements 1. REFERENCE(S): 1. Amendment No. 1 to September 19, 2011 Professional Services Agreement 1I. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 02127: Discussion 03105: MOTION: I move to approve Amendment No. I to the September 19, 2011 Professional Services Agreement with HDR Engineering, Inc. authorizing additional engineering services for Wastewater Treatment Plant Improvements, not to exceed $15,070 and further, authorize the Mayor to sign the agreement. III. FISCAL IMPACT: A) $15,070; Sewer utility Account IV. HISTORY AND FACTS BRIEF: A) In June 2010, the City received an approved permit from the Department of Ecology for the Waste Water Treatment Plant located at Gray Street which expires June 15, 2015. The permit contained a condition that the City must complete a Comprehensive Engineering Study. The study will enable the City to have a plan for optimization of the plant for operations to meet Department of Ecology (DOE) requirements. B) HDR was contracted to assist the City in negotiating and addressing a reasonable schedule for the submittal of the required facility plan update in the most recent NPDES Permit. C) HDR completed the Comprehensive Engineering Study, which included findings and recommended improvements to optimize the plant operations and to meet the requirements of the DOE Permits. D) On September 19, 2011, Council approved the Professional Services Agreement with HDR Engineering, Inc, to provide engineering services for the Wastewater Treatment Plant Improvements project. HDR would develop engineering design plans that would enable the City to bid the Wastewater Treatment Plant project by November 2011. The professional services agreement included tasks for project management, permit/ regulatory approval, design of improvements, preparation of equipment and construction specifications and startup services, V. DISCUSSION: A) Construction bids were received on November 30, 2011 and evaluated by City and Consultant staff. B) During the bid evaluation period two bid protests were received and evaluated. The City requested HDR staff to assist with responding to the protests. Those efforts included reviewing qualifications information for the bidders, checking references, responding to legal questions, and preparing declaration statements for the City Attorney. C) Proposed Amendment No. 1 formally recognizes those required efforts and authorizes additional engineering services budget in the amount of$15,070. 4(e) AMENDMENT NUMBER 1 to PROFESSIONAL SERVICES AGREEMENT WHEREAS, the City and HDR Engineering, Inc. entered into a Professional Services Agreement on September 19, 2011 to provide engineering services with respect to Wastewater Treatment Plant Improvements project. NOW, THEREFORE, this agreement is amended to allow HDR Engineering, Inc. to provide additional engineering services as described on Exhibit B, 1. Scone of Work: Scope of services includes additional professional services required for the Wastewater Treatment Plant Improvements project. 2. Fee: The compensation for the work is based on a time and material basis not to exceed the amount of$15,070. 3. Time of,performpnce The services shall be complete for the project on or before August 31, 2012, DATED THIS DAY OF , 2012. CITY OF PASCO: CONSULTANT—HDR Engineering, Inc.: Matt Watkins, Mayor Mike L. Cross, P.E. ATTEST: APPROVED AS TO FORM: Debbie Clark, City Clerk Leland B. Kerr, City Attomey HDR Engineering, Inc. l Amendment No. l Professional Services Agreement—Wastewater Treatment Plant Improvements EXHIBIT B SCOPE OF SERVICES Additional Services - Bid Protest Support Background The City of Pasco, Washington (City) has awarded a contract to Apollo Construction for Wastewater Treatment Plant (WWTP) Improvements Design Project. The following changes or circumstances have necessitated a revision to the scope of services for this project. A. A bid protest was issued during the conclusion of the Bid Period, and an award dispute was brought forward by the second low bidder, William Charles West Construction. The City requested HDR provided assistance during the Protest which began immediately after the bid opening on November 30, 2011, and continued until an award was made on December 19, 2011 These services were not included in the Scope of Services In the original contract Dated September 11, 2011, and are Additional Services. Task 100 — Project Management Objective An adjustment in the Project Management (PM) services that have or will be provided by HDR is needed due to the reduction and addition(s) noted above. A. PM Services associated with supporting the City staff while resolving the Bid Protest were not foreseen and are added to the contract. Consultant Services 1, Coordinate and manage the Consultant's team. 2. Provide over-site of e-mail and other written correspondence to document decisions and conclusions about relevant construction issues as they materialize. 3. Provide correspondence on any major issues that surface for which a recommendation or decision is requested. 4. Prepare monthly status reports to be submitted with invoices which will include the following Information: a. Services completed during the previous month b. Services planned for the next month c. Budget information updates 5. Prepare monthly invoices. 6. Provide responsive communication to any issue that is brought forward by the City staff. City Responsibilities 1. Timely processing and payment of invoices. 2. Review and process contract change requests and amendments, if needed. Wastewater Treatment Plant Improvements 1 Professional Services Agreement—Amendment 1 3. Respond in a timely manner to issues brought out in correspondence and through direct communication with the Consultant. Assumptions 1. A similar small percentage of the HDR tabulated Bid Protest Support Services will be shown on the fee compensation accounting sheet as Project Management services (Task 100). 2. Invoices will be Consultant's standard invoice listing personnel and the hours they have worked on each task. Monthly progress report will be a one page summary of the work completed to date, work anticipated for next month, outstanding issues and budget summary. 3. Expense backup will not be provided with invoices but will be available for review at Consultant's office. Deliverables 1. Relevant correspondence will be delivered using the most expeditious method possible, i.e. e-mail over mail wherever appropriate. 2. Monthly reports and invoices (one copy with invoice can be mailed or e-mailed PDF file) 3. Monthly services budget updates. Task 600 -- ADDITIONAL ENGINEERING SERVICES Consultant Services HDR provided unforeseen assistance to the City in responding to Contractor Bid Protests. City staff requested assistance from HDR to work through the protest issues as described in detail below, The following items represent the work completed out of scope for the Pasco Wastewater Treatment Plant Improvements Project while supporting the bid protest resolution. 1. HDR assisted the City with reviewing and investigating the Bid Protest Letters from William Charles West (WCW) and Apollo Inc. (Apollo). 2. Based on the Bid Protest letter investigations, HDR assisted with the City's responses to the Bid Protests. 3. HDR assisted and attended three meetings with the City and City Attorney to discuss the bid protests and required actions to position for award of the contract. 4. HDR prepared declarations, affidavits, and responses for the City to support the decision to award the contract to the responsible and apparent low bidder. 5. HDR prepared for and attended two City Council Meetings to support City staff with the Bid Protest responses and Bid Award. 6. Provide WWTP modeling services as requested by the City staff—to determine the impacts of continuing the discharge from an industrial client that is exceeding the City's waste strength limitations. Wastewater Treatment Plant Improvements 2 Professlonal Services Agreement—Amendment 1 Assumptions 1. The services that were provided under this request were not planned or documented in the original contract scope of services. 2. The services are recoverable under the original contract under Task 600--Additional Engineering Services. 3. HDR did not question the City's request for HDR staff to provide the services, even though they were recognized as outside the contract. There was an exigency to award the contract, and HDR recognized that the City provided the requested services in as timely a manner as they were requested. Deliverables 1. All deliverables were provided to the City staff and/or the City's legal counsel as the bid protest was on-going. END OF SCOPE Fee estimate for services outlined above are included in the "Compensation Exhibit" which is attached hereto. Wastewater Treatment Plant Improve men Is 3 Professional Services Agreement--Amendment 1 HDR ENGINEERING CITY OF PASCO WASTEWATER TREATMENT PLANT IMPROVEMENTS PROJECT Compensation Exhibit- Amendment No. 1 Description Included Tasks Total Cost Project Management Task 100 - Project Management $ 2,142 and QA/QC Additional Engineering Task 600 - Additional Services Engineering Services Bid Protest Services $ 12,926 Services Total $ 15,070 Notes: HDR provided unforeseen assistance to the City in responding to Contractor Bid Protests. City staff requested assistance from HDR to work through the protest issues as described in detail below. The following items represent the work completed out of scope for the Pasco Wastewater Treatment Plant Improvements Project while supporting the bid protest resolution. 1, HDR assisted the City with reviewing and investigating the Bid Protest Letters from William Charles West (WCW) and Apollo Inc. (Apollo). 2. Based on the Bid Protest letter invesVagations, HDR assisted with the City's responses to the Bid protests. 3. HDR assisted and attended three meetings with the City and City Attorney to discuss the bid protests and required actions to position for award of the contract. 4. HDR prepared declarations, affidavits, and responses for the City to support the decision to award the contract to the responsible and apparent low bidder. 5. HDR prepared for and attended two City Council Meetings to support City staff wi*h the Bid Protest responses and Bid Award. Based on the above efforts the following is a breakdown of the hours required from HDR staff to complete the above listed tasks. Title Roars Project Principal 1 Project Manager 32 Senior Wastewater Engineer tEid Pro ect Engineer Pro ect Controller Pasco WWTP Improvements Project AGENDA REPORT NO. 3 FOR: City Council ,i February 22, 2012 c t TO; Gary Crutchfs t anager Workshop Mtg.: 02/27/12 FROM: Ahmad Qayouri4i, Public Works Director Regular Mtg.: 03/05/12 SUBJECT: Professional Services Agreement with HDR Engineering, Inc. - Wastewater Treatment Plant Improvements- CONSTRUCTION I. REFERENCE(S): 1. Professional Services Agreement II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 02/27: Discussion 03/05: MOTION: I move to approve the Professional Services Agreement with HDR Engineering, Inc. authorizing engineering construction services for Wastewater Treatment Plant Improvements; not to exceed $45,774 and further, authorize the Mayor to sign the agreement, III. FISCAL IMPACT: A) $45,774; Sewer Utility Account IV. HISTORY AND FACTS BRIEF: A) In June 2010, the City received an approved permit from the Department of Ecology for the Waste Water Treatment Plant located at Gray Street which expires June 15, 2015. The permit contained a condition that the City must complete a Comprehensive Engineering Study. The study was completed in 2011 and has enabled the City to develop a plan for optimization of the plant for operations to meet Department of Ecology(DOE)permit requirements. B) On September 19, 2011, Council approved the Professional Services Agreement with HDR Engineering, Inc. to provide engineering design services for the Wastewater Treatment Plant Improvements project. HDR would develop engineering design plans that would enable the City to bid the Wastewater Treatment Plant project by November 2011. The design services have been completed and services during construction were not included. V. DISCUSSION: A) The Wastewater Treatment Plant Improvements Project is now in the construction phase. City staff will be providing construction management and certain part-time inspection of the construction activities. Given the nature of the improvements and the specialized skills needed to ensure high quality performance and compliance with the technical specifications, City staff has recognized the need to seek a consultant to assist with shop drawing and submittal reviews, inspection of equipment installation and additional review of start-up procedures and operations &:maintenance manuals. C) Staff recommends that the attached Professional Services Agreement with HDR, Inc. in the amount of$45,774 be approved by Council. The work of this agreement is the continuation of the project in which HDR provided design and bid support services. 4(f) PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, made and entered into between the City of Pasco, hereinafter referred to as the "City", and HDR Engineering, Inc. hereinafter referred to as the "Consultant". WHEREAS, the City desires to engage the professional services and assistance of a consulting firm to provide CONSTRUCTION engineering and consulting services with respect to the Wastewater Treatment Plant Improvements, and Consultant has demonstrated that it is highly qualified to perform these services. NOW, THEREFORE, in consideration of mutual benefits accruing, it is agreed by and between the parties hereto as follows: 1. Scone of work. The scope of work shall include all services and material necessary to accomplish the above mentioned objectives in accordance with Exhibit B. 2. Ownership and use of documents. A. The parties acknowledge that this Agreement shall be governed by RCW Chapter 42.56 and any other State or Federal law relating to confidentiality, intellectual properties, and public disclosure. The parties shall make a good faith effort to comply with such laws, and to the fullest extent allowed by law, comply with the provisions of this section. B. All research, tests, surveys, preliminary data and any and all other work product and deliverables, as defined in the Scope of Services, and prepared or gathered by the Consultant in preparation for the services rendered shall not be considered public records, rop vided, however, that: (1) All final deliverables prepared by Consultant shall become the property of the City upon their presentation to and acceptance by the City and shall at that date become public records. (2) The City shall have the right, upon reasonable request, to inspect, review and, subject to the approval of Consultant, copy any work product. (3) In the event that Consultant shall default on this Agreement, or in the event that this Agreement shall be terminated prior to its completion as herein provided, the deliverable(s) of Consultant, along with a summary of services performed to date of default or termination, shall become the property of the City and tender of the deliverable(s) and summary shall be a prerequisite to final payment under this Agreement. The summary of services provided shall be prepared at no additional cost, if the Agreement is terminated through default by Consultant. If the Agreement is Professional Services Agreement—HDR-- Wastewater Treatment Plant Improvements CONSTRUCTION I terminated through convenience by the City, the City agrees to pay Consultant for the preparation of the summary of services provided. (4) Consultant shall maintain all documents associated with services provided under this Agreement for a minimum period of three (3) years after completion of the work. This provision shall survive termination of this Agreement. (5) Consultant shall respond to requests by the City for project-specific accounting records within five (5) business days by either providing the records, or by identifying in writing that additional time is necessary to provide the records with a description of the reasons why additional time is needed. Records shall be provided to the City within twenty (20) days of the date of the request. provisions of Section 5 in this Agreement shall specifically apply to any claim arising out of Consultant's failure to properly maintain or timely produce records as described herein and as otherwise required by law. 3. Payments. The Consultant shall be paid by the City for completed work for services rendered under this Agreement as provided hereinafter. Such payment shall be full compensation for work performed or services rendered and for all labor, materials, supplies, equipment and incidentals necessary to complete the work. A. Payment for work accomplished under the terms of this Agreement shall be on a time and material basis as set forth on the fee schedule found in Exhibit B, provided, in no event shall the payment for all work performed pursuant to this Agreement exceed the sum of $45,774, without approval from the City. B. All vouchers shall be submitted by the Consultant to the City for payment pursuant to the terms of this Agreement. The City shall pay the appropriate amount for each voucher to the Consultant. The Consultant may submit vouchers to the City monthly during the progress of the work for payment of completed phases of the project. Billings shall be reviewed in conjunction with the City's warrant process. C. The costs records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City for a period of three (3) years after final payment, Copies shall be made available upon request. 4. Time of Rerformance, The Consultant shall perform the work authorized by this Agreement promptly and before August 31, 2012. 5. Hold harmless ap_reement. In performing the work under this Agreement, the Consultant agrees to defend, and to the extent permissible by law, indemnify and hold harmless the City, their officers, agents, servants and employees (hereinafter individually Professional Services Agreement—HDR—Wastewater Treatment Plant Improvements CONSTRUCTION 2 and collectively referred to as "indemnitees"), from all suits, claims, demands, actions or proceedings, from: A. All damages or liability of any character including in part costs, expenses and attorney fees, to the extent based upon, any negligent act, error, or omission of Consultant or any person or organization for whom the Consultant may be responsible, and arising out of the performance of professional services under this Agreement; and B. All liability, loss, damage, claims, demands, costs and expenses of whatsoever nature, including in part, court costs and attorney fees, based upon, or alleged to be based upon, any act, omission, or occurrence of the Consultant or any person or organization for whom the Consultant may be responsible, arising out of, in connection with, resulting from or caused by the performance or failure of performance of any non-professional work or services under this Agreement, or from conditions created by the Consultant performance or non-performance of said work or service. 6. General and professional liability insurance. Consultant shall secure and maintain in full force and effect during the performance of all work pursuant to this Agreement a policy of comprehensive general liability insurance providing coverage of at least $1,000,000 per occurrence and $2,000,000 aggregate for personal injury; 51,000,000 per occurrence and $2,000,000 aggregate for property damage; professional liability insurance in the amount of $1,000,000; and automobile insurance as required by law. Each such insurance policy, except Professional Liabilty and Worker's Compensation, shall name the City as an additional insured and shall include a provision prohibiting cancellation of said policies, except upon thirty (30) days written notice to the City. The City shall be named as a certificate holder on each insurance policy. Certificates of coverage shall be delivered to the City within fifteen (15) days of execution of this Agreement. 7. Discrimination prohibited, Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, age, sex, national origin or physical handicap. 8. Consultant is an independent contractor. The p arties. intend that an independent contractor relationship will be created by this Agreement. No agent, employee or representative of the Consultant shall be deemed to be an agent, employee or representative of the City for any purpose. Consultant shall be solely responsible for all acts of its agents, employees, representatives and subcontractor during the performance of this Agreement. Consultant shall make no claims for benefits for employment against the City including, but not limited to, sick leave, medical insurance, coverage under the City's State Department of Labor and Industries policy, vacation benefits, retirement, or unemployment benefits. Consultant shall comply with all State and Federal laws including, but not limited to, the requirements of RCW 50.04,0140 and RCW 51.08,195. Professional Services Agreement—HDR—Wastewater Treatment Plant Improvements CONSTRUCTION 3 9. City approval. Notwithstanding the Consultant's status as an independent contractor, results of the work performed pursuant to this Agreement must meet the approval of the City. 10. Termination. This being an Agreement for professional services, either party may terminate this Agreement for any reason upon giving the other party written notice of such termination no fewer than ten (10) days in advance of the effective date of said termination. 11. Integration, The Agreement between the parties shall consist of this document and any schedules or exhibits listed in this agreement and attached hereto. These writings constitute the entire Agreement of the parties and shall not be amended except by a writing executed by both parties. In the event of any conflict between this written Agreement and any provision of Exhibit B,this Agreement shall control. 12. Non-waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 13, Non-assignable. The services to be provided by the Consultant shall not be assigned or subcontracted without the express written consent of the City. 14. Covenant against continMat fees. The Consultant represents that he has not employed or retained any compan y or person, other than a bona fide employee working solely for the Consultant, to solicit or secure this Agreement, and that he has not paid or agreed to pay any company or person, other than a bona fide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award of making of this Agreement. For breach or violation of this representation, the City shall have the right to annul this Agreement without liability or, in its discretion to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 15. General Provisions. For the purpose of this Agreement, time is of the essence. In the event a dispute regarding the enforcement, breach, default or interpretation of this Agreement, the parties shall first meet in a good faith effort to resolve such dispute. In the event the dispute cannot be resolved by agreement of the parties, said dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules (MAR); venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall apply; and the prevailing party shall be entitled to its reasonable attorney fees and cost, In the event any provision of this Agreement is deemed to be unenforceable, the other provisions of the Agreement shall remain in full force and effect, Professional Services Agreement—HDR—Wastewater Treatment Plant Improvements CONSTRUCTION 4 16. Notices. Notices to the City of Pasco shall be sent to the following address: City of Pasco P. O. Box 293 Pasco, WA 99301 Notices to the Consultant shall be sent to the following address: Miles L. Cross, P.E. HDR Engineering, Inc. 2805 St. Andrews Loop,Suite A Pasco,WA 99301 Receipt of any notice shall be deemed effective three (3) days after deposit of written notice in the U. S. mails, with proper postage and properly addressed. DATED THIS DAY OF , 20 CITY OF PASCO CONSULTANT: By: By: Matt Watkins, Mayor Miles L. Cross, P.E.—Vice President ATTEST: Debbie Clark, City Clerk APPROVED AS TO FORM: Leland B. Kerr, City Attorney Professional Services Agreement—HDR—Wastewater"treatment Plant Improvements CONSTRUCTION 5 EXHIBIT B SCOPE OF SERVICES Construction Support Services Background The City of Pasco,Washington (City) has awarded a contract to Apollo Construction for Wastewater Treatment Plant (WWTP) Improvements Design Project. The following changes or circumstances have necessitated a revision to the scope of services for this project. A. The construction bid award was made for a portion of the advertised improvements. HDR Engineering, Inc. (consultant) was under contract to provide Operations Services for all equipment included in the bid schedule as advertised. This amendment reduces fees for Startup Services and Operational and Maintenance Manual Update services that will not be performed. B. The City also desires to have HDR Engineering, Inc. provide Construction Support Services for the construction of the WWTP Improvements project. The Construction Support Services were not included in the original contract dated September 11, 2011. Task 100 - Project Management Objective An adjustment in the Project Management (PM) services that have or will be provided by HDR is needed due to the reduction and addition(s) noted above. A. PM Services that would have been provided for Operations Services that are being removed from the contract should be estimated, accounted for, and reduced from the contract. B. PM Services associated with providing Construction Support Services are added to the contract. These services will support the following activities: reviews of the contractor's shop drawings, issuance of responses to Requests for Information (BFI's), subsequent issuance of construction documentation by e-mail and in writing, and issuance of invoices for services provided. The limited construction support services will be provided under a limited budget, with consideration that fees for services under any subtask may overrun, and with the further understanding that overall contract limits will not be exceeded unless an amendment or city authorization is given in writing. Consultant Services 1. Coordinate and manage the Consultant's team. 2. Provide over-site of e-mail and other written correspondence to document decisions and conclusions about relevant construction issues as they materialize. 3. Provide correspondence on any major issues that surface for which a recommendation or decision is requested. 4. Prepare monthly status reports to be submitted with invoices which will include the following Information: Wastewater Treatment Plant Improvements 1 Professional Services Agreement—Amendment 1 a. Services completed during the previous month b. Services planned for the next month c. Budget information updates 5. Prepare monthly invoices. 6. Provide responsive communication to any issue that is brought forward by the City staff. City Responsibilities 1. Timely processing and payment of invoices. 2. Review and process contract change requests and amendments, if needed. 3. Respond in a timely manner to issues brought out in correspondence and through direct communication with the Consultant. Assumptions 1. Project management meetings will be required while performing new Task 700 of the new Contract, Pasco WWTP Construction Support Services. 2_ Invoices will be Consultant's standard invoice listing personnel and the hours they have worked on each task. Monthly progress report will be a one page summary of the work completed to date, work anticipated for next month, outstanding issues and budget summary. 3. Expense backup will not be provided with invoices but will be available for review at Consultant's office. 4. The services provided will be coordinated with city staff. Fees for services will be tracked on a monthly basis at first, and more often as the project moves forward. Consultant will notify City in writing when budget is 85 percent spent. If the budget becomes exhausted before construction is complete,the consultant will suspend his work, unless a supplement is authorized by the city. Deliverables 1. Relevant correspondence will be delivered using the most expeditious method possible, i.e. e-mail over mail wherever appropriate. 2. Monthly reports and invoices (one copy with invoice can be mailed or e-mailed PDF file 3. Monthly services budget updates. Task 500 — OPERATIONS SERVICES Consultant Services 1. Remove the Screw Press from the list under Task 501 Startup Services and the implied inclusion in Task 502, Operational and Maintenance Manual Update of the original Pasco Wastewater Treatment Plant Improvements Project. 2. Task 501 is revised to read as follows: Task 501 Startup Services Wastewater Treatment Plant Improvements 2 Professional Services Agreement—Amendment 1 1, After the contractors field startup services have been completed, assist the City in starting the process operation for each system: a. Blower b. Screen and Screenings Washer Compactor c. Aeration Basin Modifications 2. Provide operator training on each of the individual components of the aeration systems, and then the entire System functionality. Task 502 Operational and Maintenance Manual Update 1. All Assumptions and Deiiverables remain the same, with the understanding that the updated Operational and Maintenance Manual will not include the Screw Press or Solids Handling Equipment. Task 700 - CONSTRUCTION SUPPORT SERVICES Objective Add Construction Support Services to the contract at the request of the City staff, to supplement City provided services, and provide a complete construction management team to complete the project. HDR staff will review shop drawings as submitted from the contractor and passed on by the City's construction management principal. HDR will provide assistance to the City in responding to RFI's. Day to day construction observation will not be provided by HDR staff, however these serves are planned to be performed by the City's construction management principal and his staff. Task 701 Shop Drawing Review 1. Review the shop drawings as submitted by the contractor and passed on by the City's construction management team. 2. Review and approve or take other appropriate action in respect to Shop Drawings and Samples and other data which Contractor is required to submit, but only for conformance with the information given in the Contract Documents and compatibility with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. 3. Reviews and approvals or other actions will not extend to means, methods, techniques, sequences, or procedures of construction or to safety precautions and programs incident thereto. Consultant shall meet any Contractor's submittal schedule that is listed in the specifications. Consultant has allocated hours to review the shop drawings as listed in .the "compensation exhibit", which is attached. 4. Evaluate and determine the acceptability of substitute or"or-equal"materials and equipment proposed by Contractor. The Consultant has allocated in the budget for the review of two substitute or equal submittals. Wastewater Treatment Plant improvements 3 Professional Services Agreement—Amendment 1 Task 702 Response to Contractor's Request for Information (RFI's) 1. The Contractor may request clarification of the scope and intent of the Contract Documents. 2. Respond to the BFI's (Request for Information) forwarded by the City's construction management team. Consultant has allocated 35 hours of time in the budget to respond to contractor's RFI's. Assumptions 1. The duration of task(s) 701 and 702 is assumed to be 9 months from award of the contractor to the final construction completion. 2. Day-to-day construction observation will be performed by the City's construction management team. 3. Consultant has not allocated any time to make site visits during construction. 4. Progress payment reviews will be performed by the City's construction management team. 5. Construction Schedule reviews and Schedule of Value reviews will be performed by the City's construction management team. 6. Preconstruction conference will be held by the City's construction management team. 7. Logging and tracking of RFI's, Shop Drawings, O&M Manuals, issuance of field orders and deficiency notices will be performed by the City's construction management team. 8. Reviewing contractor's multiple submittals, incomplete submittals or multiple re-submittals will be invoiced as additional services at the hourly rates listed in the budget sheet. 9. O&M Manual submittals and processing of acceptance correspondence will be completed by the city staff. Services which qualify for additional engineering services, such as more than 2 reviews of shop drawings, representing the client during resolution of unreasonable claims, services requiring out of town travel, and/or review of O&M manuals, will not be required. Deliverables 1. Consultant will review Shop Drawing within 14 days of receipt from the City, and issue correspondence of acceptance, need for partial re-submittal, and or rejection and requirement for complete new submittal. END OF SCOPE Fee estimate for services outlined above are included in the "Compensation Exhibit" which is attached hereto. Wastewater Treatment Plant Improvements 4 Professional Services Agreement—Amendment 1 HDR ENGINEERING CITY OF PASCO WASTEWATER TREATMENT PLANT IMPROVEMENTS PROJECT Compensation Exhibit-CM Services Contract Description Included Tasks Total Cost Project Management Task 100- Project Management $ 5.687 and QA/QC Operations Services Task 500- Operations Services Task 501 - Startup Services $ (3,183) Effort Reduced from Original (Screw Press Startup Removed) Task 502-operational and $ (7,568) Maintenance Manual (Screw Press O&M Removed) Construction Support Task 700 -Construction Support Services Services Task 701 -Shop Drawing $ 46,062 Reviews Task 702 - Response to $ 4,777 Contractor's BFI's Services Total $ 45,774 Pasco WWTP Improvements Project