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.
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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