HomeMy WebLinkAbout2007.04.30 Council Workshop Packet AGENDA
PASCO CITY COUNCIL
Workshop Meeting 7:00 p.m. April 30,2007
1. CALL TO ORDER
2. VERBAL REPORTS FROM COUNCILMEMBERS:
3. ITEMS FOR DISCUSSION:
(a) Street and Storm Water Maintenance Presentation. (NO WRITTEN MATERIAL ON
AGENDA) Presented by Jess Greenough,Field Division Manager.
(b) Planning Commission Interviews:
1. Agenda Report from Gary Crutchfield,City Manager dated April 24, 2007.
2. Applications(4)(Council packets only).
(c) Yard Sale Regulations and Signs:
1. Agenda Report from Richard J. Smith, Community & Economic Development Director
dated April 23, 2007.
2. April 18, 2007 Memo.
3. Photographs (Council packets only; copies available in Planning Office or at the Pasco
Library for public review).
(d) Comprehensive Plan: Bikeway Plan (City of Pasco)(MF#CPA 07-001):
1. Agenda Report from David 1. McDonald,City Planner dated April 24, 2007.
2. Proposed Resolution Accepting the Bikeway Plan.
3. Bikeway Plan.
4. Staff Memos to Planning Commission.
5. Planning Commission Minutes dated 2/15/07,3/15/07 and 4/19/07.
(e) Richardson Pool Repairs:
1. Agenda Report from Stan Strebel, Administrative & Community Services Director dated
April 25, 2007.
2. Richardson Pool Alternatives Cost Comparison.
(f) Golf Course Lease:
1. Agenda Report from Stan Strebel, Administrative & Community Services Director dated
April 25, 2007.
2. Memo Outlining Lease Review Committee Recommendations.
3. Summary,City-Funded Golf Course Improvements since 2000.
(g) Comprehensive Independent Utility Rate Study:
1. Agenda Report from Jim Chase, Finance Manager dated April 23,2007.
2. Proposed.Professional Services Agreement.
3. Proposal of Scope of Services to be performed from HDR Engineering,Inc. (Exhibit A).
(h) Image Payment Processing Equipment Purchase:
1. Agenda Report from Jim Chase, Finance Manager dated April 23,2007.
2. Image Payment Processing Proposal.
3. Equipment Maintenance Agreement.
(i) Fire Hydrant Meter Deposit:
1. Agenda Report from Jim Chase, Finance Manager dated April 20,2007.
2. Proposed Ordinance.
(j) East"A"Street Design Standards:
1. Agenda Report from Gary Crutchfield,City Manager dated April 25, 2007.
2. Vicinity Map.
3. Proposed Resolution.
(k) Adjustment of Council District Boundaries:
1. Agenda Report from Gary Crutchfield, City Manager dated April 26,2007.
2. PMC Chapter 1.10.
3. Council District Boundary Maps (options A, B and Q. (Council packets only; copy
available for public review in the City Manager's office and at the Pasco Public Library.)
Workshop Meeting 2 April 30,2007
4. OTHER ITEMS FOR DISCUSSION:
(a)
(b)
(c)
5. EXECUTIVE SESSION:
(a)
(b)
(c)
6. ADJOURNMENT.
Reminders:
1. 12:00 p.m., Saturday, April 28, Pasco Red Lion — Catholic Daughters of the Americas State
Convention Welcome Address. (MAYOR PRO-TEM MATT WATKINS)
2. 12:00 p.m., Wednesday, May 2, 1135 E. Hillsboro Street — Franklin County Mosquito Control
District Board Meeting. (COUNCILMEMBER BOB HOFFMANN, Rep.; JOE JACKSON, Alt.)
3. 4:00 p.m., Wednesday, May 2, Pasco City Hall, Conference Room #1 — Regional Center Study
Oversight Committee Meeting. (COUNCILMEMBERS REBECCA FRANCIK and MATT
WATKINS)
4. 5:30 p.m., Thursday, May 3, Parks & Rec. Classroom — Parks and Recreation Advisory Council
Meeting. (COUNCILMEMBER REBECCA FRANCIK, Rep.; MIKE GARRISON,Alt.)
5. 11:00 a.m., Saturday, May 5, Downtown Pasco — Cinco de Mayo Parade (staging at 2nd &
Columbia Streets at 9:00 a.m.). (COUNCILMEMBERS REBECCA FRANCIK and JOE
JACKSON)
AGENDA REPORT
TO: City Council April 24, 2007
FROM: Gary Crutchfi Manager Workshop Mtg.: 04/30/07
SUBJECT: Planning Com ission Interviews
I. REFERENCE(S):
1. Applications (4) (Council packets only)
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30: Council to conduct brief interviews with Joe Cruz, Paul Mendez, Lloyd Reitz and
Amanda Waltman.
III. HISTORY AND FACTS BRIEF:
A) The Planning Commission is composed of nine members; terms are for six years.
The Commission meets on the third Thursday of each month at 7:00 p.m.
B) The Planning Commission conducts workshop meetings and public hearings on
land-use policy and development requests and issues recommendations for the
City Council.
C) At the present time there are two vacancies on the Commission:
1. Position No. 5 (vacant)term expiration date of 02/07
2. Position No. 9 (vacant)term expiration date of 02/09
D) There is one position whose term has expired:
1. Position No. 6 (Ray Rose)
E) General committee consensus that:
1. Position No. 6 be filled by reappointment of Ray Rose without interview.
F) After Council committee review of all applications, the following have been
selected to interview for Position No. 5:
1. Joe Cruz ....................................................................10109 W. Argent
2. Paul Mendez.........................................................4508 Desert Plateau
3. Lloyd Reitz..............................................................4008 Joshua Drive
4. Amanda Waltman..............................................................28 Ivy Lane
G) The committee noted the Planning Commission presently has no member residing
in the eastern portion of the community. Given the desire for broad geographical
representation, the committee recommends Council solicit applicants from that
part of the community and hold open Position No. 9 for future applicant
consideration.
IV. DISCUSSION:
A) After conduct of interviews at the April 30 Workshop meeting, it is proposed that
appropriate appointments be made by the Mayor to fill Positions No. 5 and 6,
subject to confirmation by the Council, at the May 7 meeting.
3(b)
AGENDA REPORT NO. 35
For: City Council April 23, 2007
To: Gary Crutchfi Manager Workshop: 04/30/07
From: Richard J. Smi h, Director
Community and Economic Development
SUBJECT: Yard Sale Regulations and Signs
I, REFERENCE(S):
A. April 18, 2007 memo
B. Photographs: Provided in'the Council Packets only. Copies are available in the
Planning Office or at the Pasco Library for public review.
II. ACTION:
4/30/07: Discussion
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A) In early April, a citizen addressed the City Council regarding his concern over the
appearance of yard sales signs around the City.
B) Staff researched current enforcement practices pertaining to yard sales and
associated signs. A memo containing the findings is attached.
C) Staff is seeking direction from Council regarding the need to modify yard sale
regulations and/or enforcement practices.
3(C)
A'
MEMORANDUM
DATE: April 18, 2007
TO: Gary Crutchfield, City Manager
FROM: Richard J. Smith, Director YW
Community & Economic Development
SUBJECT: Yard Sales and Associated Signage
Background
Yard sales are allowed within the City of Pasco, provided that they are
held in accordance with Chapter 5.52 of the Municipal Code (see
attached). Specifically, each individual household is limited to two sales
in a calendar year with each sale limited to not more than three
continuous calendar days. The sale must be conducted on private
property and shall not be permitted on any sidewalks, alleys, streets or
any other public way. Prior to conducting any yard sale, a permit must
be obtained from the City Clerk. The cost of this permit. is $5.00.
Signs advertising yard sales are permitted, provided they are only
displayed pursuant to the Chapter 17.05.020 of the Municipal Code.
Yard Sale signs are not permitted to be attached to any utility pole,
subdivision fence or public property. Signs may be placed on the right-of-
way, provided that they do not in any way interfere with vehicular or
pedestrian traffic. Signs are not allowed to be displayed for more than 72
hours, regardless of the length of the sale.
Complaints
The Code Enforcement staff has received very-Lew complaints over the
years about yard sales and yard sale signage. The complaints that have
been received largely center on people that conduct yard sales on a
regular basis well in excess of the two sales per year which are allowed.
There have been instances where individuals have used the pretext of a
yard sale to sell new merchandise on a regular basis. They-are in essence
operating retail stores from their homes.
Enforcement
Yard sale regulations are now enforced on a complaint basis unless an
inspector notices what appears to be a retail operation in the guise of a
yard sale.
Yard sale signage may be placed on private property or in a public right
of way provided they do not interfere with vehicular or pedestrian traffic.
These regulations are similar to the standards for "open house" signs
which were recently made at the request of the real estate community.
The Code Enforcement Division now has an inspector on duty on
Saturdays and Sundays for four hours. Their primary enforcement
emphasis is dust control, building without permits and complaints. Over
the past week-end an inspector took photos of yard sale signs found
around the city. Photos of the signs are attached.
Conclusion
The City's Code Enforcement Division, like any organization, has limited
resources. As such, the division has focused on housing code violations,
rental inspections, property maintenance, junk vehicles, mobile venders,
dust control and building without permits. Other violations, including
yard sales and yard sale signs, are addressed on a complaint basis.
If the City Council feels that yard sales and/or signs should be actively
addressed options include:
1. Regularly checking all yard sales for compliance with the two sales
per year regulation and requiring the $5 permit for each;
2. Removing signs from the public right-of-way which have been up
for longer than permitted or are located in prohibited areas such as
on light poles (or citing the violations);
3. Review purpose and extent of current yard sales regulations for
possible revision and subsequent active enforcement.
CHAPTER 5.52 RUMMAGE, YARD SALES
5.52.010 DEFINITIONS ....................................................................105
5.52.020 YARD SALES ..................:..................................................105
5.52.030 RUMMAGE SALES..............................................................106
5.52.040 SALES IN HOSPITALS OR SCHOOLS ..................................106
5.52.050 VIOLATIONS.......................................................................106
5.52.010 DEFINITIONS. A) "YARD SALE" means a yard sale, patio sale,
garage sale or any similar sale of merchandise by an individual or group for
profit when the merchandise to be sold is offered to the general public.
B) "RUMMAGE SALE" means a rummage sale, white elephant sale,
auction sale or any similar sale of merchandise by a nonprofit organization
when the proceeds of such sale are intended to be used in a community
service, child or youth activity, charitable or other welfare work.
C) "NONPROFIT ORGANIZATION" includes but is not limited to
fraternal organizations, hobby societies, educational societies, historical
societies, museums, hospital auxiliary groups, churches, church auxiliary
organizations, student groups and parent-teacher organization. (Ord. 1499 Sec.
1, 1971.)
5.52.020 YARD SALES. A) Yard sales shall be limited to two such sales
in each calendar year for each individual household. Any sale shall not be
conducted for a continuous period of more than three calendar days.
B) Merchandise offered for sale at a yard sale must consist of used or
secondhand material owned by the person granted the permit or members of
the individual household for a period of not less than six months prior to the
date of such sale, except that in the case of a person leaving the community, a
shorter period of ownership will be allowed providing the merchandise was
purchased for actual use by the person or member of the individual household
and that the necessity for such sale of the merchandise could not have been
foreseen at the time of purchase. Intended sale of merchandise owned for less
than six months shall be listed in the application for a permit.
C) Any individual household before conducting any yard sale must
have a permit. Such a permit is obtained by making written application to the
City Clerk. The application must be signed by a member of the individual
household eighteen years of age or older and shall describe the type of material
to be sold, the location and dates of the sale, and the listing of any material
owned less than six months which is to be offered for sale.
D) Upon completion and approval of the application a permit shall be
issued containing the information shown in the application. A permit shall not
be renewable until thirty days after the expiration of the previous permit and a
fee as set forth in Chapter 3.07 of this code shall be required for each permit
issued.
E) Any permits issued under this section shall not be restricted as to
location because of zoning regulations except that such sale must be
conducted on private property and shall not be permitted on sidewalks, alleys,
streets or any other public way. Location shall be limited to property occupied
by the person signing the application for the permit.
F) Any sale shall be conducted in an orderly manner and shall not
constitute a public nuisance nor hazard to persons or property. (Ord. 3560
Sec. 45, 2002; Ord. 1499 Sec. 2, 1971.)
5.52.030 RUMMAGE SALES. A) Nonprofit organizations as defined
herein may conduct rummage sales upon issuance of a permit by the City
Clerk. The permit will be issued when an application is submitted by an
authorized member of the organization. The application shall show the name
and type of organization, intended use of proceeds from the sale, type of
materials to be sold, the location and the date of the sale.
B) A fee as set for the in Chapter 3.07 in this code shall accompany
each application for permit and a permit shall be required for each separate
sale. The sale shall be conducted for a continuous period of not more than two
calendar days., The permit shall be displayed at the site of the sale.
C) Location shall not be limited by application of any zoning
requirements, but shall be restricted to private property not necessarily
occupied by the organization conducting the sale. Sale shall not be conducted
on sidewalks, alleys, streets or other public ways; except as expressly
authorized by the City Council.
D) Sales permitted herein shall be conducted in an orderly manner
and shall not constitute a public nuisance nor hazard to persons or property.
(Ord. 3560 Sec. 46, 2002; Ord. 1499 Sec. 3, 1971.)
5:52.040 SALES IN HOSPITALS OR SCHOOLS. Nothing contained in
this chapter shall restrict or prohibit the operation of gift shops in neither
hospitals nor sales by school or parent-teacher organizations within public or
private schools. (Ord. 1499 Sec. 4, 1971.)
5.52.050 VIOLATIONS. The conduct of any sale described herein
without possessions of the permit required herein or any false statement made
in an application for a sale permit shall be considered a violation of this
chapter. Any person or organization who shall violate any provision of this
chapter will be subject to a fine of not more than five hundred dollars. Each
day of violation hereof may be considered a separate offense. (Ord. 1499 Sec.
5, 1971.)
TITLE 17
SIGN CODE
17.05.020 SPECIAL PROVISIONS BY SIGN CLASSIFICATION.
A) Temporary signs. This signage shall not be restricted by content,
but is usually and customarily used to advertise real estate sales, political or
ideological positions, garage sales, special events having a specific date or
duration. Such signage shall be subject to the following provisions: .
1) All exterior real estate-signs - shall be placed entirely on the
property for sale, except as provided below.
2) Residential "open house" signs - are permitted only during
daylight hours and during times in which the broker/agent or seller or
an agent is in attendance at the property for sale. The sign may be placed
within the periphery of the roadway provided it does not interfere with
traffic safety as provided in 17.05.040 D and 17.09.030, but it shall not
be attached to a utility pole or traffic safety device. Such signs shall be
permitted only during weekends beginning at 5:00 pm Friday and ending
at 8:00 am Monday.
3) Political Signs - may be placed within the periphery of the
public roadway provided they do not interfere with traffic - vehicular or
pedestrian as provided in 17.05.040 D and 17.09.030, or interfere with
the use of any residential or commercial property. Political signs may be
placed upon privately owned property including fences, except
subdivision fences, with the consent of the property owner.
4) Grand Opening and Special Event Displays - temporary
signs, posters, portable reader boards, banners, strings of lights, clusters
of flags, blinking lights, inflatables, balloons, and searchlights are
permitted only to announce the opening of a completely new enterprise,
the opening of an enterprise under new management, or a special event.
a) All banners must be securely fasten taut against the
wall of a building and shall not extend above the building.
b) Tethered balloons and inflatables can not be more
than 70 feet above the surface of the ground.
C) Grand opening and special event signs for businesses
must be located on the premises where the grand opening or
special event is taking place.
d) Special event signs for a community event may be
displayed on or off the premises where the event is taking place
including in the periphery of the right-of-way.
e) Special event signs for a community event located in
the periphery of the right-of-way may not be larger than 6 square
feet.
fj Special event signs may be located on the Robert Frost
Elementary School pedestrian overpass on North 20th Avenue. Said
signs may be larger than 6 square feet.
5) Garage or Yard Sale Signs.
a) No garage/yard sale sign shall be placed, affixed,
stapled, glued, or taped to any utility pole, subdivision fence, or
any public property;
b) No garage/yard sale sign shall be placed on the right-
of-way of any roadway in such a manner as to interfere with traffic,
both vehicular and pedestrian, as provided in 17.05.040 (D) and
17.09.030, or interfere with any residential, commercial or
industrial property;
C) No garage/yard sale signs shall be placed on private
property for more than 72 hours, regardless of the length of the
sale.
a ,
AGENDA REPORT NO. 36
i
FOR: City Council Date: 4/24/07
TO: Gary Crutchfi 1 y anager Workshop: 4/30/07
Richard J. Smi it to Regular: 5/7/07
Community an Economic Development
FROM: David I. McDonald, City Planner,�__'
SUBJECT: Comprehensive Plan: Bikeway Plan(Ci!y of Pasco) (MF # CPA 07-
001
I. REFERENCEIS):
A. Proposed Resolution accepting the Bikeway Plan
B. Bikeway Plan
C. Staff Memos to Planning Commission
D. Planning Commission Minutes dated 2/15/07, 3/15/07 $v 4/19/07
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30/07: Discussion
5/7/07: Motion: I move to approve Resolution No. accepting
the Bikeway Advisory Committee recommendations on the Bikeway Plan
and establishing the-same as the Bikeway Plan for the City of Pasco.
III. FISCAL IMPACT: None
IV. HISTORY AND FACTS BRIEF:
A. Late last summer the City Council authorized the formation of an ad
hoc advisory committee to advise the Council on design standards and
other matters related to bike routes within the city.
B. Following two workshops and a public hearing, which was held on April
19th, the Planning Commission recommended the City Council adopt
the proposed Bikeway Plan as prepared by the Bikeway Advisory
Committee.
V. DISCUSSION:
A. The proposed Bike Plan developed by the Bikeway Advisory Committee
contains a number of policies addressing concerns related to safety,
encouraging bike use, accessibility and maintenance of biking facilities.
B. The Bikeway Advisory Committee also developed a recommended bike
route map. The Pasco bike routes have been included in the recently
published Tri-City Cycling Guide prepared by the Regional Council of
Governments. The bike routes in the Tri-City Cycling Guide including
those in Pasco were recommended by the Tri-City Bicycle Club. The
Bikeway Plan has also been reviewed and accepted by the Park
Advisory Board,
C. Later this year the Bike Plan will be incorporated as a part of the
Transportation Element of the updated Comprehensive Plan.
3(d)
RESOLUTION NO.
A RESOLUTION establishing a Bikeway Plan for the City of Pasco.
WHEREAS, the Growth Management Act [RCW 36.70A.070 6 (a)(iii)]requires
the City to address pedestrian and bicycle facilities to encourage community access and
promote healthy life styles; and,
WHEREAS, the City Council authorized the formation of an ad hoc Bikeway
Advisory Committee; and,
WHEREAS, the Bikeway Advisory Committee prepared a number of policies
and statements and a bike route map, collectively constituting a bikeway plan for the City;
and
WHEREAS, the Planning Commission reviewed the Bikeway Plan prepared by
the Bikeway Advisory Committee during two public workshop meetings and conducted
one public hearing on the proposed Plan; and,
WHEREAS, following a public hearing, the Planning Commission unanimously
recommended the Bikeway Plan for City Council approval; and,
WHEREAS, the City Council has reviewed the Planning Commission's
recommendation for a Bikeway Plan; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
Section 1. That the Bikeway Plad attached as "Exhibit 1" hereto shall be the
Bikeway Plan for the City of Pasco.
Passed by the City Council of the City of Pasco this day of , 2007.
Joyce Olson
Mayor
ATTEST: APPROVED AS TO FORM:
Sandy L. Kenworthy Leland B. Kerr
Deputy City Clerk City Attorney
Exhibit # 1
CITY OF PASCO
Bikeway Plan
Introduction
Goals and objectives create the framework for a plan. A goal is a broad
statement that gives the community a sense of direction. Goals typically do not
change over time. Objectives are a more precise statement that, when
accomplished, help achieve a goal. There are multiple options for achieving goals
and therefore objectives may change based on new information, community
value shifts, technology, or other ideas. Modification of objectives is a continuous
process.
Overall Bikeway Goal
Overall Goal: Create and maintain a high-quality bikeway network that is safe,
direct, comfortable, and aesthetically pleasing, which encourages non-
motorized over automobile travel, and which allows cyclist access to every
destination accessible to automobiles. A well-designed bikeway will encourage
a healthier lifestyle and reduce negative impacts on the environment. Bicycles
should be seen as legal transportation devices and be afforded the same
consideration as motorized vehicles.
Policies and Objectives
The overall Goal can be broken down into several Policies and Objectives that
elaborate on and help quantify the goal statement. The plan's objectives
include the following:
1) Policy: Connectivity/Access--Bicyclists should have access to every City
destination accessible by motorized vehicles, where practical.
Objectives
a) Require bicycle lanes, paths, or trails and bicycle access points in new
development design.
b) Design bike paths for the most direct routes possible.
c) Remove/mitigate major barriers such as freeways and railroad crossings
by including over/underpass facilities. Crossing points to be at right
angles and to be as short as possible.
d) Connect "Missing Links" for bike path continuity.
e) Loop and interconnect paths, or trails to provide a variety of trail lengths
and destinations including small and large loops for a broad range of
experiences and ability levels
fl Provide safe bicycle access to and parking facilities for all major
commercial destinations, where practical.
1
Exhibit # 1
g) Provide safe bicycle access to and parking facilities for all major civic
destinations, (e.g., library, post office).
h) Provide safe bicycle routes to all schools.
2) Policy: Safety/Security--Bicyclists should have safe access to destinations
citywide, where practical.
Objectives:
a) Design bicycle routes and paths to minimize the conflicts between
motorists and bicyclists by increasing the separation of cyclists from
motorized vehicles as hazards increase as funding permits.
b) Design intersections with bicycle-friendly facilities such as bicycle-first
signaling as funding permits.
c) Include secure bicycle lock-up facilities at all destinations as funding
permits.
d) Design landscaping to be open and "visually secure," as funding permits.
e) Install clear Right-of Way indicators for automobiles and bicyclists as
funding permits.
Utilize "Traffic Calming" measures where appropriate.
g) Clearly mark bike paths and lanes for safety as funding permits.
h) Consider installation of lighting along bike paths and trails as funding
permits.
3) Policy: Corr( ort/Convenience—Bikeways shall be designed to encourage
non-motorized travel citywide.
Objectives:
a) Plant shade trees along bicycle paths for relief from summer heat. Trees
should be selected that do not produce a destructive root pattern for
paths and trails.
b) Include rest areas with water, air, and toilet facilities at convenient
intervals along bicycle routes.
c) Design bicycle lanes, paths, or trails for "flow," with as few stops as
possible.
d) Mark trails for distance monitoring.
4) Policy: Aesthetics— Bikeways shall be aesthetically pleasing so as to
encourage non-motorized travel citywide.
Objectives:
a) Plan bike paths and trails to provide visual and physical access to
natural areas and to the river.
b) Landscape bicycle lanes, paths, or trails to be interesting and attractive
to the user.
2
1
Exhibit # 1
c) Take soil conditions, surface drainage and other physical limitations that
may impact or cause over-use into account when designing bike paths or
trails.
5) Policy: Incentives/Promotion--Encourage non-motorized travel
a) Consider utilizing urban planning approaches that promote physical activity
wherever possible (As per Chapter 36.70A.070(1) RCW).
b) Make bikeway maps easily available (brochures and internet).
c) Continue to provide Safety guides/education.
6) Policy: Maintenance—Establish bike path maintenance policies and
schedules.'
a) Maintain roadways and bikeways to a relatively hazard-free standard.
i) Sweep pavement and paved shoulders with sufficient care.
ia) Patch potholes in an expeditious manner.
iii) Patch surfaces as smoothly as possible and require other agencies or
private companies to do likewise whenever a road or trail is excavated.
iv) Make sure pavement overlay projects feather the new surface into the
existing one or otherwise do not create new linear joints.
v) Replace such hazards as dangerous grates or utility covers as the
opportunity arises.
vi) Implement vegetation prevention programs as allowable and practical.
vii)Routinely cut back all encroaching vegetation on trails or popular bike
routes.
b) Encourage bicyclists to report maintenance problems and other hazards.
i) Develop a bicycle trail/path improvement form and distribute copies
throughout the bicycling community.
u) Make sure returned forms are acted on in a timely manner.
c) Design and build new roadways and bikeways in such a manner as to
reduce the potential for accumulation of debris.
i.) Use edge treatments, shoulder surfaces and access controls that
reduce the potential for accumulation of debris.
ii) Use materials and construction techniques that increase the longevity
of new trail surfaces.
d) Include maintenance costs and maintenance procedures in all bicycle
facility projects.
i) Include reasonable estimates for the maintenance costs in the project
budget.
ii) Establish clear maintenance responsibilities in advance of
construction.
Bike Routes
Bike routes for the City of Pasco are identified in the attached Bike Route Map
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CITY LIMITS Parks
April 2007
Memo
To: Planning Commission
From: Jeffrey B. Adams, Associate City Planner
Subject: Bikeway Policy Advisory Committee
Date: February 15, 2007
The City Council recently authorized appointment of an ad hoc Advisory
Committee to assist staff in developing policies relating to the design, location
and maintenance of bikeways throughout the city.
This newly formed Committee, in conjunction with staff representatives from
three City departments (Public Works, Planning, and Parks and Recreation) was
charged with the following tasks:
1. Propose design,'standards and options for bikeways throughout the city
2. Propose policie.s regarding bicycle accommodation in the city
3. Maintenance standards for'the bikeway system
This Committee convened for the first time on September 27th 2006 and held
subsequent meetings on October 11th, October 25th, November 15th, December
6th and finally on January 24th, 2007.
Design Standards
For design standards the Committee accepted the Public Works proposal of
adopting the "Bicycle Facilities" section of the Washington State Department of
7ti-ansportation Design manual by reference. The committee felt that a good
policy would be to increase the level of separation of bicycles from motorized
traffic as the traffic counts increased, as the speed increased, and as the
percentage of heavy vehicles increased.
Bicycle Accommodation in the City and Maintenance Standards
The Committee proposed a series of policies addressing some of the
impediments of bicycle use in the city. These include Connectivity and Access,
Safety and Security, Comfort and Convenience, Aesthetics, Incentives and
Promotion, and finally Maintenance Standards (See attached Proposed Bikeway
Goals, Policies and Objectives).
The Committee also produced an updated map (see Attached Bike Route Map)
delineating both existing and proposed routes and paths where bicyclists
should be able to travel safely and comfortably.
MEMORANDUM
DATE: March 15, 2007
TO: Planning Commission
FROM: Dave McDonald, City Planner
SUBJECT: Bike Plan Questions
At the last regular Planning Commission meeting Staff provided the
Commission with a listing of Bikeway goals and policies developed by the
Bikeway Advisory Committee. The proposed goals and accompanying
Advisory Committee Map generated a number of questions from
Commission members. The questions and observations centered on the
safety of proposed bike routes, projects for bike improvements and bike
path maintenance.
To assist with answering questions and to provide the Planning
Commission with a biker's prospective of the proposed goals and policies
Staff has invited the Chairman of the Bikeway Advisory Committee to the
March 15th meeting. The Bikeway Committee Chairman will be able to
address the Commission's concerns about the safety over certain
portions of the proposed routes and provide answers to other questions.
Specific questions related to capital improvement projects are issues the
Staff and the Bikeway Chairman can not really address. The City
Council addresses these issues with the development of the annual
Capital Improvement Program.
MEMORANDUM
DATE: April 19, 2007
TO: Planning Commission
FROM: Dave McDonald, City Planner
SUBJECT: Bike Plan
The Growth Management Act requires the City to include information
within the Comprehensive Plan dealing with or encouraging non
motorized transportation. The current comprehensive plan addresses
this mandate by including information on pedestrian/bike routes
throughout the City. This year's Plan update will need to include
information on bike routes within the transportation element.
The Planning Commission reviewed the work of the Bikeway Advisory
Committee at the regular meeting of February 15th and March 15th. At
the March 15th meeting the Chairman of the Bikeway Committee, along
with the Community and Administrative Services Director answered
questions about the proposed Bikeway Plan. The Bikeway Plan has since
been reviewed and accepted by the Park Advisory Board and the Bike
routes have been included in the recently published (by the Benton
Franklin Council of Governments) Tri-City Cycling Guide. The routes in
the Tri-City Cycling Guide including those in Pasco were recommended
by the Tri-City Bicycle Club.
The proposed Bikeway Plan has been scheduled for a public hearing on
April 19f.
RECOMMENDATION
Motion: I move that the Planning Commission recommend the City
Council adopt the proposed "Bikeway Plan".
Planning Commission Minutes
2/15/07
WORKSHOP:
A. Code Amendment Bikeways Plan (MF# CPA 07-001)
Staff explained a Bikeways Committee was recently convened to develop goals
and recommend bikeways standards and routes. The Committee work resulted
in the development of a bikeways plan. Staff explained the contents of the plan
for the benefit of the Planning Commission.
Commissioner McCollum asked if the cost of maintaining the bikeways will be
the City's responsibility.
Staff stated some of the pathways will be maintained by the City's Parks and
Recreation Department while other routes will be maintained as part of the
City's road system.
Commissioner McCollum suggested that the bikeways might be adopted by
local enthusiasts to maintain portions of the routes, similar to the adopt a
highway program.
Commissioner Schouviller asked if the plan is a requirement for the City or a
recommendation; he questions the impact upon the City of implementing the
plan.
Staff responded that the bikeways would become part of the City's Capital
Improvement Plan. The State has mandated that a bikeways plan be
implemented into the overall transportation plan.
Commissioner Little commented that the map illustrated a bikeway along Road
68; he would like to know where it is located.
Staff responded that clarification on the location of the bikeway would have to
given by the Director of Public Works. Staff further explained that some of the
bikeways are marked, some unmarked, etc.
Commissioner Little stated that he believes something should be done to
delineate the bikeway along Road 68. As traffic increases, the separation will
become more important.
Commissioner Samuel stated that he felt the bikeways plan is a terrific idea,
but that the proposed routes would entail a significant expense to the City in
order to make them safe.
Staff asked the Commission if what they would like to see is a map that rates
the different proposed routes in terms of safety and accessibility.
Commissioner Hay stated that he would like to see the existing bikeways are
properly maintained.
Commissioner McCollum stated that he agreed that the bikeways plan is a
terrific idea, particularly in light of environmental issues. He also stated that
perhaps the Committee should prioritize the project by rating the different
streets (for safety, extent of work to create the bike routes, etc.) He feels that
the bikeways plan should recognize priorities.
Commissioner Samuel stated that perhaps maintenance of the existing bike
paths should be the highest priority. Second would be those locations where
there is low danger, low traffic and relative ease of installation/designation of
the bike route. The lower priority locations would be those in high danger
zones, and with higher implementation costs.
Commissioner Hay asked about pathways currently existing along the freeway.
He wondered if that is a pedestrian path, a bike path, etc. and who maintains
it.
Staff responded that the paths along the freeway are in the WDOT right-of-way
The City maintains the path.
Commissioner McCollum stated that he felt that the plan should go back to the
Committee for them to prioritize the plan.
Commissioner Hay stated that he felt a path from the river to the highway
would be a good place to start.
Commissioner Schouviller commented that W. Sylvester is indicated as a bike
route, but that no shoulder exists in that location.
Commissioner Little commented that perhaps moving the proposed route from
Road 68 to Road 72 would be a safer alternative with less traffic.
Commissioner Samuel stated that the map of the routes is questionable. It
should be revised to indicate locations that are not safe, or would difficult to
make safe. He feels that the workability of the plan should be more closely
examined. The plan should also designate what work will be done now, what
ten years from now, etc.
Planning Commission Minutes
3/15/07
WORKSHOP:
A. Bike Plan Bikeways Plan (MF# CPA 07-001)
Vice Chairman Samuel read the Master file and asked Staff for a report.
Staff stated that at the last meeting, there was extensive discussion of the
proposed Bikeways Plan. Staff determined that the Commission might be best
served if their questions are answered by individuals on the Bikeways
Committee.
Jan Tidrick, 1704 W. Octave, introduced himself to the Commission as
Chairman of the Bikeways Committee. He stated that they had presented what
they felt they were asked to do by the Council. The Committee was comprised
of five members with a variety of experience in bicycling.
Vice Chairman Samuel asked if Mr. Tidrick had seen the questions that were
asked by the Commission at the previous meeting.
Mr. Tidrick responded that he had received a rough overview of the questions.
He commented that he was aware that they had requested a prioritization of
the paths, and recommended which paths should be completed first.
Commissioner Schouviller asked what criteria had been used to determine bike
routes.
Mr. Tidrick stated that there were no specific criteria. There are very few
north/south connections; there are only four locations in which it is possible to
cross the freeway in Pasco (under 20th, over Road 68, under Road 44 and over
Road 100). The committee included 20th in order to provide access to the
college.
Commissioner Schouviller commented that he does not consider Sylvester
Street to be bike friendly.
Mr. Tidrick responded that between 2001--2004, there were five bicycle
accidents along Sylvester Street and they were not in any particular location.
He added that there is a bike path that runs parallel to Sylvester, and he
believes that most of the bike traffic is on that path.
Commissioner Anderson stated that he runs on Sylvester Street and does not
feel the volume of traffic is unfriendly to bicycles. He asked for clarification of
the term "traffic calming measures" that was used in the report.
Mr. Tidrick responded that staff would be better able to answer that question.
Staff stated that traffic calming measures could take the form of a protrusions
from the edge of the street that would cause vehicles to slow down, speed
bumps, small roundabouts, etc. These features are placed every quarter-mile
or so to calm traffic.
Commissioner Rose asked if the Committee had any discussion regarding the
maintenance of these paths.
Mr. Tidrick responded that the Committee did discuss maintenance. There is a
big problem with tumbleweeds north of the freeway; south of the freeway
tackweeds are a problem. Mitigation measures might include poisoning (within
City limits), gravel along the paths, or cutting/removing the weeds.
Vice Chairman Samuel stated that the discussion at the prior meeting included
questions about maintenance of the current paths versus installation of new
paths. He wondered if the Committee had discussed which would be more
important.
Mr. Tidrick responded that they did not discuss which is more important. He
felt that these types of priorities would be something better suited for staff to
establish. The Committee focused their efforts on determining the best
linkages and North/South routes. He also noted that the Benton-Franklin
Governmental Council has established a set of standards for bikeways.
Vice Chairman Samuel asked if the Committee's position was that sidewalks
are not bike paths.
Mr. Tidrick responded that sidewalks that are designed at seven feet wide are
very easy to ride a bicycle on. The State establishes a dual purpose sidewalk
as eight feet wide.
Vice Chairman Samuel stated that it was obvious that the Committee had put
a lot of time and effort into development of the plan.
Stan Strebel; Administrative and Community Service Director for the City of
Pasco addressed the Commission. He stated they will attempt to develop a
more comprehensive maintenance document. He added that the costs of
implementing the plan may be absorbed into other projects.
Commissioner Schouviller stated that he felt the plan will help create an
enhanced sensitivity toward bicycle traffic to impact future street development.
Mr. Strebel stated that from this point forward the plan can be incorporated
into development proposals.
a
Commissioner Rose commented that the only new pathway would be along the
irrigation canal. He wondered how soon that might be installed.
Mr. Strebel responded that funding is currently being coordinated for that
pathway.
Vice Chairman Samuel asked what staffs next step be in the process.
Mr. Strebel responded that as the document is formalized, the route and
standard information can be applied to new development within the City as it
occurs.
Vice Chairman Samuel asked what the next step will be in approving this
document.
Staff responded the plan will need to be approved and later in the year
incorporated in the Transportation Element of the Comprehensive Plan.
Vice Chairman Samuel commented that he appreciated having the opportunity
to look at the plan and provide comments.
Commissioner Rose asked how the plan will be implemented in those areas
that are in the County's jurisdiction.
Staff responded that they are coordinated with the County through the Benton
Franklin Regional Council.
Planning Commission Minutes
4/19/07
E. Bikeway Plan Bikeways Plan (MF# CPA 07-001)
Chairman McCollum read the Master file and asked Staff for a report.
Staff stated that notice of the hearing had been published in the newspaper.
Staff explained this item had been reviewed by the Planning Commission in
workshops over the past two months. A final draft of the policy has been
provided to the Commissioners for review. Staff further explained the proposed
Bike Plan/Policy had been reviewed and accepted by the Parks Board. The
proposed bike routes in the plan were also recently included in the newly
published Tri-City Cycling Guide prepared by the Regional Council. The routes
in the guide including those in Pasco were recommended by the Tri- city
Bicycle Club.
The Chairperson opened the Public Hearing.
After three calls for public comment the Chairman closed the Public Hearing.
Commissioner Samuel moved to close the hearing on the proposed Bikeway
Plan and recommend approval to the City Council.
Commissioner Little seconded the motion; motion carried unanimously.
AGENDA REPORT
FOR: City Council Date: 4/25/07
TO: Gary Crutch Manager W/Shop Mtg.: 4/30/07
FROM: Stan Strebel,Adniinistrative&Community
i�AKices Director
SUBJECT: Richardson Pool Repairs
I. REFERENCEN:
A)Richardson Pool Alternatives Cost Comparison
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30 DISCUSSION,Provide Direction to Staff
III. FISCAL IMPACT:
Depends on Alternatives
IV. HISTORY AND FACTS BRIEF:
A) Council recently authorized the ORB Organization to prepare a cost study updating/preparing
construction and operational cost estimates for various swimming pool alternatives. The study
has been completed and staff is reviewing the information for presentation to Council at an
upcoming meeting.
B) Recent preparations for the opening of the pools for the approaching summer have revealed
significant problems with the pool decking and drain system at Richardson Pool that will require
immediate repairs if the pool is to be opened for 2007. While, given the age of the pools,
cracking of the concrete decking is not unusual(we patch and repair year to year as needed), the
current level of damage (settlement of slabs resulting in displacement of more than an inch and
displacement of subsurface material resulting in hollowed cavities under slabs) is beyond what
can be reasonably repaired with surface treatments.
C) Please see the attached sheet which summarizes the projected costs of alternative futures for
Richardson Pool including both near and long term. While the "must complete" repair estimate
for 2007 totals nearly $7,000, continuing operation in 2008 would require the additional outlay
of an expected $5,100 for modifications needed to meet new pool codes. If 2007 repairs are to be
made, it would make sense to do 2008 work at the same time. Ideally,the pool heater should also
be replaced ($10,000) as staff has been expecting its failure for some time. Failure during the
season would result in considerable disruption of scheduled activities.
D) Given the cost of the required repairs, plus the fact that, due to the aged condition of the pool,
additional similar "band-aid" repairs are inevitable in the short run, staff seeks Council's
direction as to whether it should go forward with the repairs or plan to not open the pool this
year, thus avoiding expense that may, in the long run, prove to be unnecessary or made without
the benefit of a complete review of all of the City's options for its pools.
E) Staff would have normally preferred to consider all of the pools together as an element of the
capital plan, however, owing to the need to take immediate steps for the repair of Richardson
Pool, or in the alternative, if a decision should be made to close the pool, it would be helpful to
include such notice in our summer recreation brochure, which outlines the pool use/lesson
schedules and is scheduled to go to the printer on May 7. If Council directs that closure is the
most rational decision, staff will work to modify schedules at Memorial and Kurtzman pools in
order to accommodate, as a first priority, swimming lessons, with other adjustments, (perhaps
extending normal operations till 10:00pm as opposed to 8:30pm) designed to serve the public as
much as possible.
3(e)
RICHARDSON POOL ALTERNATIVES
COST ESTIMATES
Annual
Operational
Capital Cost Cost*
1. Required Repairs 2007 6,900 15,000
2. Required Renovation, 2008 Code Compliance 5,100 15000
3. Should Complete
Heater Replacement 10,000 15000
Deck Replacement 35,000
4. Demolish, Restore Site 125,000 0
5. Complete Renovation 750,000 15,000
6. Replacement, As Is 1,100,000 15,000
7. Demolish, Replace with Sprayground 650,000 6600 **
(water re-use)
8. Demolish, Replace with Sprayground 400,000 7800 **
(flow through)
*Operational costs estimated including program/admission revenues
** Sprayground costs based on 25,000 gal per day, 8hr/day, 120 days.
Labor, electrical, water, sewer, chemicals
No revenue assumption
AGENDA REPORT
FOR: City Council Date: 4/25/07
TO: Gary Crutchfi 4anager W/Shop Mtg.: 4/30/07
Reg. Mtg.: 5/7/007
FROM: Stan Strebel, strative&Community
es Director
SUBJECT: Golf Course Lease
I. REFERENCE(S):
A) Memo Outlining Lease Review Committee Recommendations
B) Summary City-Funded Golf Course Improvements Since 2000
II. ACTION REQUESTED OF COUNCIUSTAFF RECOMMENDATIONS:
4/30 DISCUSSION
MOTION:
III. FISCAL IMPACT:
See Explanation,General Fund Revenue Increase
IV. HISTORY AND FACTS BRIEF:
A) In January, IRI Golf Inc., the golf course lessee, proposed making improvements at the golf
course to accommodate larger groups for tournaments and gatherings. In exchange for spending
approximately $50,000 to purchase and equip a tent-like banquet pavilion, IRI requested early
exercise of their option to renew the lease for an additional 5 year term as well as some changes
to the lease regarding the manner in which golf play fees are established. Council appointed a
review Committee consisting of Councilman Garrison and Duane Taber and Steve Putnam of the
Park and Recreation Advisory Council to review IRI's requests. The Committee has met with IRI
and has considered each of the requests. The final recommendations of the Committee are
represented in the attached memo which discusses each of the proposed changes,the impacts and
proposed language for amending the lease.
B) In summary, the Committee recommends that IRI be allowed to proceed with planning of the
pavilion and that the early extension of the lease be allowed (2011-2015). The Committee also
recommends that, beginning in 2009, IRI be allowed to set fees at the average of the"comparable
facilities" (as opposed to 85% of the average) and that only Columbia Point and Canyon Lakes
be included as comparable facilities(dropping Horn Rapids from the list). Season passes for City
of Pasco residents would be discounted 15%off the regular rates.
C) In exchange for the lease amendments requested by IRI, the Committee recommends that the
amount paid by IRI to the city, annually, as "capital replacement amount" be increased from
6.5%to 7.5%of"play revenue"(which will generate at least$7,500 additional income beginning
in 2009). The capital replacement amount is payable to reimburse the City for a portion of the
cost of improvements that it has made to the course since the original lease was signed. (See
Attachment`B"for summary of improvements).
D) Additionally,the Committee recommends that the threshold,beyond which the City will receive
additional revenue for the lease,be lowered from the current amount of$857,143 total annual
golf course play revenue,to the amount of play revenue generated for the 2008 calendar year
(The year immediately prior to the effective year for proposed lease changes). This amount will
likely be between $770,000 and$800,000,therefore,under this concept,the City would receive
an additional amount of up to$9,900 to$15,200 annually that would not be realized were the
threshold not lowered.
E) Finally, the proposed package will resolve the concern that IRI had raised about the transition
from the 2.5% Admission Tax on golf which was substituted in 2005 for a like percentage
charged on play revenue and remitted as part of the capital replacement amount.
F) Staff also recommends Council approval and acceptance of the proposed changes. If Council
approves with the Committee's recommendations, a document reflecting the changes to the lease
will be drafted for the meeting of May 7h.
3(f)
MEMORANDUM
TO: Pasco City Council
Gary Crutchfield, City Manager
FROM: Stan Strebel, Administrative aa&L-'ity Service Director
FOR: Golf Course Review Committee, Mike Garrison, Steve Putnam, Duane Taber
DATE: April 24,2007
RE: Final Recommendation on I.R.I. Requests for Lease Modification
This is to summarize the discussions and final recommendations of the Committee regarding
LR.L's request for modification of the Golf Course Lease dated January 10, 2007 and subsequent
e-mail request dated April 0 (attached). The following is formatted to align with I.R.I.'s
Renewal Term Rider Proposal as attached to their request(I.R.I. language shown as italic.)
1. I.R.1. to provide $50,000 in capital improvements for a pavilion in the first quarter of
2008.
The Committee supports this request but recommends that the location and site
screening be chosen so as to minimize potential concerns of adjacent homeowners. The
alternative to the west of the clubhouse may be a better option to address these issues,
though admittedly, may be more difficult from an operational standpoint due to distance.
Improvements would revert to the City on expiration of the lease.
2. City to Callow I.R.I. to]exercise the Renewal Option for five years for the Golf Course
Lease Agreement.
The Committee agrees with this request.
3. Recommended changes to contract with regard to the daily green fees and season fees to
start with the 2009 rates.
Committee agrees.
Revise section 7 3.b to delete the reference that the Fees must be 85%of the average
regular rate then being charged at Comparable Facilities for both daily green fees and
season passes. Change to allow Sun Willows to charge an average of the three
Comparable Facilities rounding up to the nearest whole dollar.
Committee recommends section to be amended to read: (deletions by interlineation,
additions by underline)
Limitations on Increases in Fees. Any increase in the Fees contemplated by
Subparagraph (a) above shall not result in the Fees being in excess of eight-five percent
(85%) of the average regular rates then being charged at the Comparable Facilities, unless
the consent of the City Representative is obtained, which shall not be unreasonably
withheld. When adjustment to the Fees are established,they may be rounded upward to
the nearest one-half dollar. Effective for the 2009 calendar year, any increase in the Fees
shall not result in the Fees being in excess of the average of the regular rates then being
charged at the Comparable Facilities.
It is our opinion at this time that Morn Rapids is not a comparable facility with Sun
Willows, Columbia Point and Canyon Lakes. We would like to ask you to consider
removing them from the Comparable Facility List.
Committee agrees with the request conditional upon increasing IRI's 's payment to the
City as "Capital Replacement Amount" from 6.5%to 7.5% of golf play revenue effective
in 2009 (the year that the fee provisions would go into effect). Prior to any fee
adjustments, this would produce approximately $7,500 additional annual income for the
City and would increase commensurate with increases in play revenue. It is further
proposed that the threshold, beyond which the City will receive annual additional
compensation(17.5%) for the course lease, be lowered from the current$857,143 level to
the level that is equal to the 2008 actual "play revenues".
Please see the attached sheets which show calculated averages for the"Comparable"
courses for daily fees and for annual passes plus the 15% discount for Pasco residents
both including Horn Rapids and without that facility. As can be seen,the major cost
effect of dropping Horn Rapids from the list will be on daily fee payers,while the
discount for season passes for City residents (see recommendation,below) would actually
serve to reduce those rates unless the other courses increased these rates before the 2009
effective date.
Implementation of these changes would require the following changes to the lease:
1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires, the terms defined in this Article I
shall have the following meanings:
(t) "Com arable Facilities" shall mean Columbia Point Golf Course,—and
Canyon Lakes Golf Course, and HeFa Rapids Golf Ceufse.
. T
2.2 Rent; Payment; Rental Credit. Lessee agrees to pay the City for the right, license
and privilege of leasing and operating and maintaining the Golf Course, food and
beverage concession, and other concessions, the following payments:
(b) Golf Course Additional Payment.
(i) In addition to the Annual Lease Payment, Lessee agrees to pay on an
annual basis,the amount, if any, by which 17.5% of Golf Course Play
Revenues exceeds an amount equal to the annual Lease Payment(the
"Additional Payment"). Effective January 1st, 2009 the Additional Payment
will be 17.5%of Golf Course Play Revenues generated in excess of the
amount of Golf Course Play Revenues for the 2008 calendar year.
4.2 Capital Reserve Account.
(b) Capital Replacement Amount. Commencing on January 1, 2003, Lessee shall
pay to the City and the City shall deposit to the Capital Reserve Account on an
annual basis (i.e. for each Lease Year) an amount(the "Capital Replacement
Amount") equal to the greater of-
(i) four percent(4%)of Golf Course Play Revenues, or
(ii) the sum of$20,000.00.
Commencing on July 1, 2005, Lessee's payment requirement shall increase to six
and one half percent(6.5%)of Golf Course Play Revenues.
Commencing on January 1, 2006, Lessee's payment requirement shall increase to
six and one half percent(6.5%) of Golf Course Play Revenues plus two and one
half percent(2.5%) of driving range revenues.
Commencing on January 1.2009, Lessee's payment requirement shall increase to
seven and one half percent(7.5%) of Golf Course Play Revenues plus two and
one half percent(2.5%)of driving range revenues.
Language could be added to state that the daily fee rate and season pass rate in any
category would not increase by more than 5% in any one year.
The Committee recommends that this language not be included. There are two
reasons for the recommendation. 1) The first is allow I.R.I.to increase rates a bit more
quickly toward the average as consideration for the issue regarding the"admissions tax".
(The admissions tax was intended by City Ordinance to be included or imbedded in the
published rates for admission to any of the covered activities. When the tax was removed
from golf by action of the City Council in 2005,the City and I.R.I. amended the lease to
reflect a 2.5%increase (the amount of the former admissions tax) in the"Capital
Replacement Amount"payable by I.R.I. to the City. Had the tax been "imbedded" in
admission prices there would have been no difference to T.R.I. in this change. Since
I.R.I.'s practice had been to add the tax on the admission price, they experienced a net
loss due to the change.) 2)The second reason is that it seems to make reasonable sense
to allow I.R.I. to bring the rates up to the average as they see fit,judging the local market.
We will offer a 15%discount to City of Pasco residents for Season Passes.
The Committee concurs with this request and suggests that Section 7.3(c) of the lease
be amended to read:
Special Programs. Lessee shall not discontinue programs such as Senior Discounts,
Senior Passes, Junior Discounts, Season Passes, (including a 15%discount on season
asses for Pasco residents), and similar programs benefiting the public which have been
historically maintained at the Golf Course without the prior consent of the City, which
consent shall not be unreasonably withheld so long as such programs have been
discontinued at one (1) or more of the Comparable Facilities or the maintenance of such
programs is no longer economically viable for the operation of the Golf Course. To the
extent that Lessee desires to increase the fees or charges relating to such programs, such
increases shall be determined and governed in the same manner as applicable to the Fees
under Subparagraphs (a) and(b) above.
2007 TRI-CITIES COURSE COMPARISON
12AILY FEE RATES
SUN WILLOWS
Weekend $36.00 inc tax
Friday $33.00 inc tax
Monday—Thursday $28.00 inc tax
COLUMBIA POINT
Weekend $40.00 inc tax
Friday $35.00 inc'tax
Monday -Thursday $30.00 inc tax $Yz.4D
HORN RAPIDS FAA dA 37, 47
Weekend $38.00 inc taxN - �
Friday $33.00 inc tax
Monday—Thursday $28.00 inc tax
CANYON LAKES
Weekend $49.82 inc tax
Friday $44.40 inc tax
Monday—Thursday $38.99 inc tax
ANNUAL PASS RATES
SUN WILLOWS
7 Day $1,190 Resident $1,395 Non Residents
5 Day $ 935 $1,195
Senior $ 765 $ 895
COLUMBIA POINT
7 Day $1,395
5 Day $1,050
Senior $ 895 7p,4�
HORN RAPIDS S'JOAY 4 9�0 !J oSz
7 Day $1,300 ,,
5 Day $1,000 $$$
Senior $ '875
CANYON LAKES
7 Day $1,395
5 Day $1,195
Senior $ 895
2007 TRI-CITIES COURSE COMPARISON
DAILY FEE RATES
T
SUN WILLOWS
Weekend $36.00 inc tax _ r
Friday $33.00 inc tax � N '4�`��
Monday--Thursday $28.00 inc tax
COLUMBIA POINT
Weekend $40.00 inc tax
Friday $35.00 inc tax w$,eK�Na
Monday - Thursday $30.00 inc tax
-HORNIUmbS
limn tax
Mort - 8 Aix
CANYON LAKES
Weekend $49.82 inc tax
Friday $44.40 inc tax
Monday-Thursday $38.99 inc tax
ANNUAL PASS RATES
SUN WILLOWS
7 Day $1,190 Resident $1,395 Non Residents
5 Day $ 935 $1,195
Senior $ 765 $ 895
COLUMBIA POINT
7 Day $1,395
5 Day $1,050 /5-.7 ItAs, AtlAAAA '
Senior $ 895 .p�SGd�NT
�-NHS
Buy 7�4r fir, 1 S4 411 ?-,r
Sell
t047 015y
CANYON LAKES gf?5-
7 Day $1,395
5 Day $1,195
Senior $ 895
SUMMARY CITY-FUNDED GOLF COURSE IMPROVEMENTS SINCE 2000
2000 2001 2002 2003 2004 2005 2006
Expense Expense Expense Expense Expense Expense Expense TOTALS
Golf Cart Storage Sheds 18,487.72 24,087.00 42,574.72
Golf Course Irrigation 730,868.82 362,240.53 1,093,109.35
Golf Course Ponds 251,083.11 251,083.11
Golf Course Reservoir 10,564.27 531,541.92 - 542,106.19
Golf Course RestaurantlCiubhouse
Remodel 378,925.06 378,925.06
2,307,798.43
2007 Budget: $20,000 Storage Sheds, $80,000 Cart Paths
AGENDA REPORT
FOR: City Council DATE: April 23, 2007
WORKSHOP: April 30, 2007
TO: Gary Crutch e i ager REGULAR: May 7, 2007
Stan Strebel, V a e&Community Services Director
FROM: Jim Qi tinance Manager
SUBJECT: COMP NSIVE INDEPENDENT UTILITY RATE STUDY.
I. REFERENCE(S):
Proposed Professional Services Agreement
Proposal of Scope of Services to be performed from HDR Engineering, Inc. (Exhibit A)
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30/2007 DISCUSSION
5/7/2007 MOTION: I move to approve the proposed agreement with HDR
Engineering, Inc. to conduct a Comprehensive Rate Study for the Water,
Sewer, Stormwater and Irrigation Utilities.
III. FISCAL IMPACT:
$53,825 paid by the Water/Sewer Fund.
IV. HISTORY AND BRIEF FACTS:
The City has utilized the services of HDR Engineering(HDR)in the past to perform
water and sewer utility rate analysis. HDR's prior analysis and recommendations have
enabled the City to provide water and sewer services at rates sufficient to maintain
adequate cash reserves and meet capital improvement needs.
Pasco has grown dramatically over the past 10 years. The last comprehensive study(one
that included both a rate review and a cost of service analysis)was completed in 1993.
In 2002, HDR performed a revenue requirement study for the water and sewer utilities.
The irrigation utility system was purchased in 2002 and has grown from 900 customers to
over 2,960 in 2006. The system provides water to those customers from April through
October. The previous owner charged customers $32 per month. Staff determined the
rates could be reduced to cover anticipated costs. Council authorized a rate reduction for
-the 2003 irrigation season from $32 to $24 per month. This system has not been included
in past studies.
The stormwater management utility was formed in 1999 and has not been included in
previous studies. The present charge is $1.80 per month and the resulting revenues have
not been sufficient in covering operating costs and capital improvements to the system
for the last several years.. One of the major costs in the stormwater management program
is keeping the streets and gutters free of debris to allow rainwater easy access into the
drainage system. The street sweepers are utilized during slack traffic times to accomplish
this task with the added benefit of clean looking streets.
The last rate increase in water rates was the result of HDR's 2002 recommendation. The
monthly base rates were increased by 4% in January 2003 and an additional 4% in
January 2004. The monthly sewer base rates were also increased at those times by the
same percentages.
3(g)
The monthly sewer base rate fee was reduced by 10% in 7anu,ary.2007. This was a result
of staff's determination of a sufficient cash balance in that utility to cover-expenses and
anticipated capital improvements needs. It was anticipated a rate study would be
completed in 2007 to validate the lowering of those rates.
It is also important to note the water consumption fee has remained at 54 cents per one
hundred cubic feet since 1993. Approximately half of the billing revenues come from
base rates and the other half from consumption charges. The study will reveal if rates for
consumption should be higher to induce additional conservation efforts by our customers.
Many other cities use multiple tiers and rates depending on usage to assist in conservation
efforts. Pasco's single rate applies to all consumption.
V. DISCUSSION:
There are a number of different elements that make utility rate setting a complex process.
In short, the objective is to assure that the City's water and sewer utilities are adequately
funded, and that rates are fair and equitable to all customers. The utility also has an
obligation,per revenue bond covenants,to hold cash reserves sufficient to cover debt
service payments. In addition,capital projects need to be financed,whether by increased
rates or additional utility revenue bonds.
The goals and objectives for this study would be to provide a feasible financial and rate
plan for each utility's operating and capital needs and provide a presentation to Council
with documentation to summarize the findings and options.
HDR has agreed to complete this study for$53,825. The study will be a continuation of
the services that HDR has provided to the City in the past.
VI. OTHER COMMENTS:
In consideration of the need for timely rate information for planning purposes and in
consideration of HDR's past performance, staff recommends approval of the proposed
agreement. It is anticipated that any needed changes to utility rates would be made
effective in 2008 and used in preparation of the 2008 budget.
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 perform a Comprehensive Water, Sewer, Stormwater and Irrigation Utilities
Rate Study.
NOW, THEREFORE, in consideration of mutual benefits accruing, it is agreed by and
between the parties hereto as follows:
1. Scope of work. The scope of work shall include all services and material necessary
to complete the work as outlined in the scope of services entitled"Comprehensive Water, Sewer,
Stormwater and Irrigation Utilities Rate Study" that is dated April 18, 2007, and marked as
Exhibit A, attached hereto and incorporated herein by this reference.
2. Ownership and use of documents.
A. All studies, plans, specifications, documents, materials, methodology,
software, logic and systems developed under this Agreement whether finished or not shall
become the property of the City of Pasco, shall be forwarded to the City of Pasco at its request
and may be used by the City of Pasco as the City of Pasco sees fit. The City of Pasco agrees that
if products prepared by the Consultant are used for purposes other than those intended in this
Contract, the City of Pasco does so at the City's sole risk and agrees to hold the Consultant
harmless for such use.
B. All services performed under this Agreement will be conducted solely for
the benefit of the City of Pasco and will not be used for any other purpose without written
consent of the City of Pasco. Any information relating to the services will not be released
without the written permission of the City of Pasco.
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
invoiced and paid in 5 monthly installments and in no event shall the payment for all work
performed pursuant to this Agreement exceed the sum of$53,825.00 without prior authorization
of 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.
1
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 performance. The Consultant shall perform the work authorized by this
Agreement promptly and deliver the work product by July 18,2007.
5. Hold harmless agreement. In performing the work under this contract, the
Consultant agrees to defend the City, their officers, agents, servants and employees (hereinafter
individually and collectively referred to as "Indemnities"), from all suits, claims, demands,
actions or proceedings, and to the extent permissible by law, indemnify and hold harmless the
Indemnities from
A. All damages or liability of any character including in part costs, expenses
and attorney fees, 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 work or services other than
professional services under this Agreement, or from conditions created by the Consultant in the
performance or non-performance of said work or service, regardless of whether or not caused in
part by the party indemnified hereunder.
6. General and professional liability insurance. The Consultant shall secure and
maintain in full force and effect during performance of all work pursuant to this contract a policy
of comprehensive general liability insurance providing coverage of at least $500,000 per
occurrence and $1,000,000 aggregate for personal injury; $500,000 per occurrence and aggregate
for property damage; and professional liability insurance in the amount of $1,000,000. Such
general liability policies shall name the City as an additional insured and shall include a
provision prohibiting cancellation of said policy, except upon thirty (30) days written notice to
the City. The City shall be named as the certificate holder on the general liability insurance.
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 parties 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
2
purpose. Consultant shall be solely responsible for all acts of its agents, employees,
representatives and sub-consultants during the performance of this contract.
9. City approval. Notwithstanding the Consultant's status as an independent
contractor, results of the work performed pursuant to this contract 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. General Provisions. For the purpose of this Agreement, time is of the essence.
Should any dispute arise concerning the enforcement, breach or interpretation of this Agreement,
venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall
apply, and the prevailing parties shall be entitled to its reasonable attorney's fees and costs.
12. Inteeration. The Agreement between the parties shall consist of this document and
the Consultant's proposal 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 A, this Agreement
shall control.
13. 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.
14. Non-assignable. The services to be provided by the contractor shall not be
assigned or subcontracted without the express written consent of the City.
15. Covenant azainst contingent tees. The Consultant warrants that he has not
employed or retained any company or person, other than a bona fide employee working solely for
the Consultant, to solicit or secure this contract, 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 contract. For breach or violation of this warranty, the
City shall have the right to annul this contract without liability or, in its discretion to deduct from
the contract price or consideration, or otherwise recover, the full amount of such fee,
commission, percentage, brokerage fee, gift, or contingent fee.
3
1 d. 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:
Tom Gould,Vice President
HDR Engineering,Inc.
500108th Avenue NE,Suite 1200
Bellevue,WA 98004-5549
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 ,2007
CITY OF PASCO CONSULTANT: HDR Engineering,Inc.
By: By:
City Manager
Title:
4
EXHIBIT A
SCOPE OF SERVICES
Section
Scope of •
1.1 Introduction
The City of Pasco (City)has requested that HDR Engineering, Inc. (HDR) submit a proposal for
a water, sewer, stormwater and irrigation rate study. This scope of work has been provided
based on our limited knowledge and understanding of the City's goals and objectives of this
study. HDR is willing to adjust the scope to ensure the City's needs are met within the scope of
services, as described below.
1.2 Proposed Scope of Work
For each task described below, HDR has attempted to identify the main objective of that task,
along with the expected City staff support for the task and the task deliverables. Unless stated
otherwise, it is assumed that the task will be preformed for each utility.
The scope of services for the comprehensive water, sewer, stormwater and irrigation rate
analyses is designed to provide a feasible financial and rate plan for each utility's operating and
capital improvement projects.
Task I Initial Project Meeting
Task Objective: Bring the Consultant, City management and staff together at the start of the
project to assure that all parties have a mutual understanding of the goals, objectives, and
concerns related to the study.
The initial project "kick-off' meeting for the rate studies is important to the overall success of
this engagement since it forms the foundation for the rate study process. The initial project
meeting is used as a starting point in developing strong working relationships between HDR and
the City's rate study project team. At the same time, this meeting allows both parties to discuss
the overall goals and objectives for this study, while at the same time discussing any issues and
concerns that either party may have. It is proposed that the initial project meeting be
approximately two hours in length.
Expected City Staff Support for Task 1:
■ Have City key management/project team members attend a two hour planning meeting.
Deliverables as a Result of Task 1-Initial Project Kick-off Meeting:
• Identification of objectives,issues and concerns by both parties.
• Face-to-face meeting to get the study off to a positive start.
HDR Terms&Conditions for professional Services Page 3 of 15 revised 1012001
Task 2—Data Collection and Review
Task Objective: Review and assess the City's existing utility data, and provide a written data
request detailing the data required to complete the water, sewer, stormwater and irrigation rate
study.
The initial written data request details the data and information required to conduct the City's
rate studies. HDR will provide a written data request to the
City prior to the initial project meeting so that it can be "The data and information
discussed at the meeting and any problem areas quickly requested for this study
resolved. The data and information requested for this study should be,for the most
should be, for the most part,readily available information(e.g. part, readily available
financial, statistical, customer, etc.). It is important to keep in information (e.g.financial,
mind that a cost of service study requires data and information statistical, customer,etc.)."
that is more detailed than the data typically reported for
annual financial statement purposes.. However, given that the
City has conducted rate studies in the past, we do not anticipate any major data deficiencies.
For those areas where the data is not readily available, or will require significant labor and
expense on the City's part to provide, HDR and the City will determine the "sensitivity" or
"importance" of the data required and if alternative data sources are available. As with any
study, it is imperative that the City provide a timely response for the data requested.
Expected City Staff Support for Task 2:
■ Gather the data requested from the written data request provided by HDR. (Note: typically
requires 20–40 hours of total staff time to provide.)
Deliverables as a Result of Task 2-Data Collection and Review:
■ An initial written data request to the City.
■ Identification of any data constraints.
Task 3—Revenue Requirement Analysis
Task Objective: Using a generally-accepted rate-setting methodology, develop the City's
revenue requirement for each utility, for a projected five-year time period. By considering
various capital financing options, revenue requirements result in a financial plan and rate
strategy to adequately fund operations and capital needs.
The development of the revenue requirement analyses is the first
major analytical portion of the comprehensive utility rate study "This task considers
process. This portion of the study entails reviewing the various the prudent and
sources of funds (revenues) and comparing them to the applications proper funding for
of funds (expenses) for the utility, while considering the prudent O&M and capital
and proper funding for O&M and capital expenditures. It expenditures for the
determines the need for any future rate adjustments. A more City,.
detailed discussion of the various steps involved in developing the
revenue requirements is provided below.
STEP I – SELECTION of A TEST PERIOD – The first step in the development of the revenue
requirements is the selection of a "test period". A "test period" refers to a time frame of
reference for the accumulation of revenues, expenses and consumption data. In this case, a five-
HDR Terms&Conditions for Professional Services Page 4 of 15 revised 10/2001
year (e.g. 2008 — 2012) projected time period is recommended. This extended time period
should be sufficient to fully understand the issues of timing of the utility capital projects. At the
same time, the City can potentially take steps today to help minimize future impacts (e.g. rate
adjustment transition,accumulation of reserves, etc.).
STEP 2—METHOD of ACCUMULATING COSTS—Once the "test period" has been determined, the
next decision is to determine the basis or method of accumulating costs.
There are two choices (methodologies) for accumulating costs; the "cash" or "utility/accrual"
basis. Table 1-1 provides a simple comparison between these two "generally accepted"
methodologies.
Cash vs. Utility Basis Comparison
� "xt " r � � I G c. _,. � i+J1a�.;t el'�. & � � ��� .��"°•i x�°q �i^� ��Ir° r , �."� � i.5Y ��4 _'
i
p �}y
• O&M Expense + O&M Expense
• Taxes or Transfer Payments + Taxes or Transfer Payments
• Annual Depreciation Expense + Capital Projects Financed with
Rate Revenues(?Deprec.Exp.)
• Return on Rate Base(Investment) + Debt Service(P+I)
Revenue Requirement = Revenue Requirement
It should be noted that the "cash" basis approach is most commonly used by public (municipal)
utilities for determining and setting their revenue requirements since this closely follows their
budgeting process. This is the methodology that the City has historically used in the past to
conduct their water and sewer rate studies.
STEP 3 —ACCUMULATION OF REVENUES AND EXPENSES— Once the test period and method of
accumulating costs has been determined, HDR in conjunction with City management and staff
will develop the test period revenue requirements.
Revenue requirements are composed of two major types of costs; operational and ,capital
expenses. The operational costs are generally projected from budgeted costs, using assumed
escalation factors, and adjusted for any known changes (e.g. additional personnel,
growth/expansion, etc.) In development of the O&M projections, any changes in operations are
also taken into account (e.g. meter reading/customer service additions). While the projection of
the operational costs is fairly straightforward, the capital cost projections are generally the focus
of the analysis, and require more thought and planning.
The starting point for projecting capital costs(expenditures)will be the City's utility Master flan
for each utility, or capital budgeting documents. In the financial planning process, consideration
must be given to maximizing the capital expenditures, while minimizing rates. This is
accomplished in a variety of ways. However, the most important aspect of this discussion is that
there are multiple methods of financing capital expenditures, and it is through this process that
rates can be minimized. Table 1-2 provides an overview of the general approach that is used to
develop a capital expense plan for the revenue requirement analysis.
MDR Terms&Conditions for Professional Services Page 5 of 15 revised 1012001
Table 1-2
Overview . . . . .
the Financing of Capital Project Expenses
+ Total Capital Projects—
✓ Replacement and Refurbishment Capital Projects
✓ Legally Mandated Capital Projects
✓ System Growth and Expansion Capital Projects
Outside Funding Sources—
✓ Capital Reserves
✓ Grants
✓ Low-Interest Loans(State and/or Federal)
✓ Connection Fees/Contributed Capital
✓ Short-Term Borrowing
✓ Borrowed Funds/Long Terror Debt(e.g._Revenue Bond)
Capital Projects Financed with Rate Revenues(?Deprec.Exp.)
The basic framework shown in Table 1-2 is developed on a year-by-year basis for each of the
projected five (S) years of the revenue requirement analysis. In summary form, the general
approach is to list the annual capital projects, and then determine the various outside funding
sources for each of the projects. These outside funding sources may be low-interest loans,
grants, customer capital contributions, connection fees, etc. The balance of projects not funded
by the available sources of funds must be financed from a combination of long-term debt and
rates. It is the balancing of the use of long-term debt to the impact upon rates,which is critical to
the analysis.
A major component of this capital improvement funding analysis is the attempt to maximize
capital projects while minimizing rate impacts to customers. Through an iterative process, a final
plan can be developed that meets the City's regulatory
`: .. consideration must requirements and other capital needs, while providing a smooth
be given to maximizing transition from a financial and rate setting perspective.
the capital improvements
(expenditures)for the In balancing the use of debt to equity (rate) financing of capital
system, while at the same projects, a number of financial planning aspects are taken into
time,minimizing rates to account. First, the utility's debt service coverage ratio is an
its customers." important financial measure or indication of the utility's ability
to repay debt. The strength of the debt service coverage ratio is
a direct function of the amount of capital projects that are financed from rate revenues. At a
minimum, we assume that a utility should fund an amount equal to or greater than the utility's
annual depreciation expense for renewal and replacement of capital projects. By properly
funding for this component of the capital projects, it should provide the utility with greater
flexibility in its ability to borrow for capital projects. Given a better understanding of the overall
magnitude of the needed capital projects, a final financing plan can be developed which meets
the City's goals and objectives,while attempting to minimize rates and costs over time.
Expected City Staff Supportfor Task 3:
• Provide "as needed" assistance, via email and telephone, to explain the City's data and
information as it relates to developing the revenue requirements.
• Provide "as needed" data refinements or additional data needs as determined during the
HDR Terms&Conditions for Professional services Page 6 of 15 revised 1012001
process of developing the revenue requirements.
■ Attend a half-day project meeting to review the draft revenue requirement analysis.
Deliverables as a Result of Task 3-Development of the Revenue Requirement Analyses. From
the work accomplished above,the deliverables for this task will be as follows:
• A half-day conference call meeting to review revenue requirements for each utility.
• A projected revenue requirement analysis for a projected 6-year period that considers the
necessary operating and capital needs of each utility(water,sewer,stormwater and irrigation).
• A capital financing plan within the revenue requirement analysis, utilizing the utility Master
Plans or capital budget, which attempts to maximize capital expenditures, while minimizing the
impacts to customers over time.
• If needed,a transition plan to"phase in"any needed rate adjustments.
• Recommendations regarding key financial indicators (debt service coverage, capital
replacement,reserve levels,etc.).
Task 4—Cost of Service Analysis
Subtask Objective: Develop an average embedded cost of service study for the water and sewer
utilities, to equitably allocate the revenue requirements to the customers served by the City.
Develop a methodology that equitably allocates the costs to customers, while considering the
varying levels of service (e.g. residential, commercial, etc)
Given the results of the revenue requirement analysis, they will be allocated to the various
customer classes of service using an average embedded cost of service methodology. A cost of
service analysis will be conducted for the water and sewer utilities only. The stormwater and
irrigation utilities do not require a cost of service analysis. Instead, average unit costs will be
used to establish final rate designs for the stormwater and irrigation utilities.
In simplified terms, a cost of service study attempts to equitably allocate the revenue
requirements between the various customer classes of service (e.g_ residential, multi-residential,
commercial, etc.). A brief discussion of the major steps associated with a cost of service
analysis is provided below.
STEP 1 --SELECTioN OF TEST PmoD — The first step of a cost of service is to select a time
period for the allocation of costs. A cost of service analysis typically reviews a 1 to 2 year
period, or the period over which rates will ultimately be set. In the City's case, allocating the
2008 revenue requirements for cost of service purposes would appear to be appropriate, at this
time. HDR will confirm this test period with the City as the project
progresses. "In simplified terms, a
STEP 2 —SELECTIoN of THE METHoD To ACCUMULATE COSTS' — cost of service study
Much like the discussion of revenue requirements, the City must attempts to equitably allocate the revenue
determine whether to use a "cash" or "accrual" basis approach for requirements between
the cost of service study. At this point, it would seem that utilizing the various customer
the "cash basis" approach would be the most appropriate. HDR classes of service"
will verify the appropriateness of using the "cash basis"
methodology with the City at the initial project meeting.
STEP3—FUNCTIONALIZATION AND CLASSIFICATIoN OF EXPENSES—The next step in the cost of
service analysis is to functionalize the data. Functionalization refers to the arrangement of cost
data into its basic cost categories (e.g. source of supply/production, treatment, transmission,
distribution, etc. for water). This task is simplified greatly through the City's use of a uniform
HDR Terms&Conditions for Professional Services Page 7 of 15 revised 10/2001
system of accounts. Given functionalized costs, the costs are then classified to their various cost
components. Classification involves determining whether each specific cost or account item was
incurred to meet a consumer's capacity, commodity (flow), customer or fire protection related
need. Classification will be based upon"generally accepted"cost of service techniques.
STEP 4—DETERMINATION OF CLASSES of SERVICE--Development of the cost of service begins
with determining the classes of service that will be used for purposes of establishing cost
allocations and rates. The process of establishing classes of service is to group customers into
homogeneous groups. That is, customers with similar usage and/or facility requirements.
As a part of this task, HDR will work with the City to define customer classes of service cost of
service analysis. In 2001 HDR reviewed the outside rate. At the initial project meeting, the
team will determine if the City has a need to review that delineation again.
STEP S—ALLOCATIONOFEXPENSEs---The next analytical process involved in the cost of service
study is the allocation of the classified expenses to each of the customer classes of service. Once
the classes of service have been determined, the process of developing allocation factors is
undertaken. In developing the allocation factors, HDR will develop factors that are "equitable"
to all customers, and which rely upon City specific data where available.
STEPS—SUMMARY OF THE COST OF SER VICE—Given the
"The summary page for the development of all the allocation factors, the previous
cost of service study compares step allocated the expenses to each class of service. From
the difference between the this process, a summary page of the cost of service study
current level of rate revenues is provided. The summary page for the cost of service
received from each class of study compares the difference between the current level
service,and the allocated cost of rate revenues received from each class of service, and
of service for each class." the allocated cost of service for each class.
The cost of service will also provide average unit costs,
or cost-based water and sewer rates, for each customer class service. Average unit costs are
important in that they are used as the starting point for the development of final rate designs.
Average unit costs provide the City with an understanding of the cost/rate relationship between
fixed and variable costs. From this cost-based information, it can be combined with the City's
rate design goals and objectives to produce the final proposed rates for the City.
Expected City Staff Support for Task 4:
• Attend a half-day project meeting to review the findings and results of the water and sewer
cost of service analysis.
• Provide any "as needed" data refinements or additional data needs as determined during the
process of developing the cost of service analysis.
Deliverables as a Result of Task 4—Cost of Service Analysis:
• Review of the current customer classes of service and determine any revisions for cost allocation
purposes.
• An "equitable" allocation of the revenue requirements to the various classes of service for the
City's water and sewer systems.
• A water and sewer cost of service allocation method that recognizes the various service levels of
the City's customers.
• A summary of the average unit costs (cost-based rates) for the various customer classes of
HDR Terms&Conditions for Professional Services Page 8 of 15 revised 1012001
service.
Task 5--Rate Design Analyses
Task Objective: Develop rate design options utilizing the cost information developed as a part
of the previous tasks. Consider alternative rate structures that are contemporary, cost-based,
defensible and meet the specific rate design objectives of the City.
An important starting point for the rate design process is understanding the City's rate design
goals and objectives. These objectives may include ease of administration, simplicity, revenue
stability, efficient use, etc. Understanding the City's rate design objectives will assist HDR in
the development of the rate design alternatives.
As a part of this task, the City's present rate designs for each utility will be reviewed to ensure
that they conform to contemporary rate-setting goals and objectives. For each utility, up to two
(2) rate designs, for each customer class of service, will be prepared. With each rate design
developed, a bill comparison and graph will be provided that shows a comparison between the
present bill and the proposed bill at various levels of usage. Bill comparisons are useful in
assessing the potential impacts to a wide variety of customers. A comparison of neighboring
water utilities will also be provided for the proposed rate designs.
Expected City Staff Supportfor Task 5:
• Discuss with HDR the City's rate design goals and objectives for each utility.
• Review and comment on rate design alternatives for appropriateness.
Deliverables as a Result of Task 5-Rate Design Analysis:
• Review of the City's current rates and develop rate design alternatives for each utility.
• Bill comparisons and graphs for the rate design alternatives will be provided.
Task 6—Written Report
Task Objective: Provide a well-written report to summarize the findings, conclusions and
recommendations of the rate study.
Upon completion of the rate analysis, HDR will develop an electronic draft written report of the
rate study. The written report is intended to be comprehensive in nature and document the
activities undertaken as a part of the project, along with our findings, conclusions and
recommendations. Within all of our reports, HDR provides technical appendices of all the
technical analyses undertaken. HDR will provide an electronic copy of the draft final report(and
up to three hard copies if desired) to the City for its review and comment. Any comments,
suggestions or corrections from the City concerning the draft final report will be incorporated
into the final report. Two bound copies, 1 unbound copy, and an electronic copy of the final
report will be provided to the City. More copies can be provided if necessary.
Expected City Staff Supportfor this Task:
■ Review and comment on the draft written report.
Deliverables as a Result of Task t-Written Reports:
■ Copies of the draft and final written reports.
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Task 7—Computer Models
Task Objective: Provide a copy of all rate models developed as part of this study.
The financial/rate model developed for the City will be provided at the end of the study. The
model will be developed using Microsoft Excel.
Expected City Staff Supportfor this Task:
■ None
Deliverables as a Result of Task 7—Computer Models:
■ An electronic copy of the computer spreadsheet models used to develop the City's studies for
each utility.
Task S---Public Presentations
Task Objective.- Provide an effective public presentation of the findings, results and
recommendations of the utility rate studies.
The overall quality and value of a rate study is often measured by the quality of the public
presentation process. In addition, the ability of the consultant to present this technical material
in a manner that is easily understandable to the City Council and public is paramount. For
planning purposes, HDR will assume one (1)public presentation of the findings, conclusions and
recommendations of this study.
It is anticipated that the public presentation will be to the City Council and will be scheduled for
July 23rd or July 30th. Should additional meetings be required, they may be provided on a time
and material basis.
Expected City Staff Supportfor this Task:
■ Schedule and coordinate the meeting date and materials for the City Council meeting.
■ Review and comment on the proposed handout for the public meeting.
Deliverables as a Result of Task 8—Public Presentations:
• Provide presentation materials for Council packets.
• One(1)public presentation of the study's findings and recommendations.
This proposed rate study work plan has been developed based upon our limited understanding of
the City's specific needs. HDR is willing to modify our approach to meet the City's needs.
1.3 Proposed Project Time Schedule
The City has indicated an interest in completing the project by late July to fit into the budgeting
process. HDR can commit the staff and resources necessary to meet this completion date. We
assume the project will begin in early to mid-May, with various review meetings with staff
occurring over the summer. The public presentations will be provided at a mutually convenient
time. At this time, it is assumed the public presentation of the study will be held on either July
23`d or July 30th. This schedule will provide ample opportunity for the HDR and the City to have
the necessary review time and policy discussions to develop an appropriate and effective plan for
each utility.
HDR Terms&Conditions for Professional Services Page 10 of 15 revised 10/2001
Section
Project - Organization
2.1 Project Team Organization
Presented below in Table 2-1 is a graphical overview of the organization of our project team.
Tom Gould will be the Project Principal and Manager for this engagement_ As Project Principal,
Tom will be responsible for overall project quality control and project schedule. Tom will be
assisted by Cil Pierce, a senior financial analyst and project manager with HDR. Cil will provide
the day-to-day coordination of the project to ensure the schedule, budget, and quality meet or
exceed the City's needs.
Table 2-1
Organization of the Proposed
Project Principal/Manager
Tom Gould
Assistant Project.Manager
Cil Pierce
Rate Studies Meetings/
Task Leaders: PresentatiQna
Cil Pierce Tom Gould
Shawn Koorn
Kevin Lorentzen
Dina O'Reilly
Tom will provide the public presentation of the findings, conclusions and recommendations of
the study. The presentations are currently scheduled for July 23'a or July 30th. Should these
dates change, for whatever reason, they will be rescheduled at the mutual convenience of the
parties. Resumes are attached of the key individuals for this study.
HDR Terms&Conditions for Professional Services Page 11 of 15 revised 10/2001
Section 3
Project Fees
3.1 Hourly Billing Rates and Fees
The following hourly billing rates were used to establish the fees for this study.
Individual Project Role Hourly Rate
Tom Gould Project Principal/Manager $225.00/hour
Shawn Koorn Senior Financial/Rate Analyst 135.00/hour
Pricilla Pierce Senior Financial/Rate Analyst 140.00/hour
Kevin Lorentzen Financial/Rate Analyst 90.00/hour
Dina O'Reilly Project Analyst 90.00/hour
Others Project Clerical Support 85.00/hour
Should other HDR individuals be required for this project, they will be billed at their standard
hourly billing rate. If additional work is requested that is outside the scope of services, it shall
be provided at these hourly billing rates. Provided below in Table 3-2 is a summary of the
estimated fees for the City's project.
Table 3-2
Summary of the Fees for the
City of Pasco Comprehensive Utility Rate Studies
Y
Labor:
Task 1: Initial Project Kick-Off Meeting;Project Management $2,790
Task 2: Data Collection and Review 1,180
Task 3: Revenue Requirement Analyses 13,440
Task 4: Cost of Service Analyses(water and sewer only) 9,720
Task 5: Rate Design Analyses 12,510
Task 6: Written Reports 4,880
Task 7:Computer Models N/C
Task 8: Public Presentations 4965
Subtotal $49,485
Expenses:
Airfare,travel,mileage $1,400
Meals,hotels 425
Car Rental 250
Phone,fax,copies 175
Technology charges 2,090
Total Expenses $4,340
Grand Total"Not to Exceed"Fees $
HDR Terms&Condltions for Professional Services Page 12 of 15 revised 10/2001
The above fees are based upon the scope of work previously presented. Should the City request
any additional services under this contract, the services will be provided at the hourly billing
rates stated above.
3.2 Proposed Method of Payment
HDR is willing to enter into a fixed fee, lump sum payment for this project. HDR would
propose that the fees be split into five equal monthly payments. The last(5th)payment would be
held by the City until all final reports are completed and delivered to the City. At that point, the
final payment would be billed to the City and the project completed.
HDR Terms&Conditions for Professional Services Page 13 of 15 revised 10/2001
HDR Engineering, Inc.
Terms and Conditions for Professional Services
1.STANDARD OF PERFORMANCE CITY and CONSULTANT, respectively, bind themselves,
The standard of care for all professional engineering, their partners, successors, assigns, and legal
consulting and related services performed or furnished by representatives to the covenants of this Agreement. Neither
CONSULTANT and its employees under this Agreement will CITY nor CONSULTANT will assign, sublet, or transfer any
be the care and skill ordinarily used by members of interest in this Agreement or claims arising therefrom without
CONSULTANT'S profession practicing under the same or the written consent of the other.
similar circumstances at the same time and in the same
locality. CONSULTANT makes no warranties, express or 6.RE-USE OF DOCUMENTS
implied, under this Agreement or otherwise, In connections All documents,Including all reports,drawings,specifications,
with CONSULTANT's services. computer software or other terms prepared or furnished by
CONSULTANT pursuant to this Agreement,are instruments
2.INSURANCE of service with respect to the project.CONSULTANT retains
CONSULTANT agrees to procure and maintain, at Its ownership of all such documents. CITY may retain copies of
expense,Workers' Compensation insurance as required by the documents for its information and reference in
statute;Employers Liability of$250,000;Automobile Liability connection with the project;however,none of the documents
Insurance of $1,000,000 combined single limit for bodily are intended or represented to be suitable for reuse by CITY
injury and property damage covering all vehicles, Including or others on extensions of the project or on any other project,
hired vehicles,owned and non-owned vehicles.Commercial Any reuse without written verification or adaptation by
General Liability insurance of $1,000,000 combined single CONSULTANT for the specific purpose Intended will be at
limit for personal Injury and property damage; and CITY'S sole risk and without liability or legal exposure to
Professional Liability insurance of$1,000,000 per claim for CONSULTANT, and CITY will defend, Indemnify and hold
protection against claims arising out of the performance of harmless CONSULTANT from all claims, damages, losses
services under this Agreement caused by negligent acts, and expenses, including attorney's fee, arising or resulting
errors, or omissions for which CONSULTANT Is legally therefrom. Any such verification or adaptation will entitle
liable. Upon request, CITY shall be made an additional CONSULTANT to further compensation at rates to be
Insured on Commercial General and Automobile Liability agreed upon by CITY and CONSULTANT.
Insurance policies and certificates of insurance will be
furnished to the CITY. CONSULTANT agrees to indemnify 7.TERMINATION OF AGREEMENT
CITY for the claims covered by CONSULTANT'S insurance. CITY or CONSULTANT may terminate the Agreement, in
whole or In part, by giving seven (7) days written notice, if
3.CONTROLLING LAW the other party
This Agreement is to be governed by the law of the state substantially fails to fulfill its obligations under the Agreement
where CONSULTANT's services are performed. through no fault of the terminating party.Where the method
of payment is "lump sum," or cost reimbursement, the final
4.SERVICES AND INFORMATION invoice will include all services and expenses associated
CITY will provide all criteria and Information pertaining to with the project up to the effective date of termination. An
CITY's requirements for the project, including design equitable adjustment shall also be made to provide for
objectives and constraints,space,capacity and performance termination settlement costs CONSULTANT incurs as a
requirements,flexibility and expandability,and any budgetary result of commitments that had become firm before
limitations. CITY will also provide copies of any CITY- termination, and for a reasonable profit for services
furnished Standard Details, Standard Specifications, or performed.
Standard Bidding Documents which are to be Incorporated
Into the project. 8.SEVERABILITY
If any provision of this agreement is held invalid or
CITY will furnish the services of soils/geotechnical engineers unenforceable, the remaining provisions shall be valid and
or other consultants that include reports and appropriate binding upon the parties. One or more waivers by either
professional recommendations when such services are party of any provision, term or condition shall not be
deemed necessary by CONSULTANT. The CITY agrees to construed by the other party as a waiver of any subsequent
bear full responsibility for the technical accuracy and content breach of the same provision,term or condition.
of CITY-fumished documents and services.
9.INVOICES
In performing professional consulting and related services CONSULTANT will submit monthly invoices for services
hereunder, it is understood by CITY that CONSULTANT is rendered and CITY will make prompt payments in response
not engaged in rendering any type of legal, Insurance or to CONSULTANTS Invoices.
accounting services, opinions or advice. Further, it is the
CITY's sole responsibility to obtain the advice of an attomey, CONSULTANT will retain receipts for reimbursable
insurance counselor or accountant to protect the CITY's expenses in general accordance with Internal Revenue
legal and financial interests. To that end, the CITY agrees Service rules pertaining to the support of expenditures for
that CITY or the CITY's representative will examine all Income tax purposes. Receipts will be available for
studies, reports, sketches, drawings, specifications, inspection by CITY's auditors upon request.
proposals and other documents,opinions or advice prepared
or provided by CONSULTANT,and will obtain the advice of If CITY disputes any items in CONSULTANT' invoice for
an attorney, insurance counselor or other consultant as the any reason,including the lack of supporting documentation,
CITY deems necessary to protect the CITY's interests before CITY may temporarily delete the disputed item and pay the
CITY takes action or forebears to take action based upon or remaining amount of the invoice. CITY will promptly notify
relying upon the services provided by CONSULTANT. CONSULTANT of the dispute and request clarification and/or
correction. After any dispute has been settled,
5.SUCCESSORS AND ASSIGNS CONSULTANT will Include the disputed item on a
HDR Terns&Conditions for Professional Services Page 14 of 15 revised 10/2001
subsequent, regularly scheduled invoice, or on a special CITY hereby releases and holds harmless CONSULTANT
Invoice for the disputed Item only. from any liability above such amount.
CITY recognizes that late payment of invoices results in 16.LITIGATION SUPPORT
extra expenses for CONSULTANT. CONSULTANT retains In the event CONSULTANT is required to respond to a
the right to assess CITY interest at the rate of one percent subpoena, government inquiry or other legal related to the
(1%) per month, but not to exceed the maximum rate services in connection with a legal or dispute resolution
allowed by law, on Invoices which are not paid within forty- proceeding to which CONSULTANT is not a party, CITY
five (45) days from the date of the invoice. In the event shall reimburse CONSULTANT for reasonable costs in
undisputed portions of CONSULTANT's invoices are not responding and compensate CONSULTANT at its then
paid when due, CONSULTANT also reserves the right, after standard rates for reasonable time incurred in gathering
seven (7) days prior written notice, to suspend the information and documents and attending depositions,
performance of Its services under this Agreement until all hearings,and trial.
past due amounts have been paid in full.
10.CHANGES
The parties agree that no change or modification to this
Agreement,or any attachments hereto,shall have any force
or effect unless the change Is reduced to writing,dated,and
made part of this Agreement. The execution of the change
shall be authorized and signed in the same manner as this
Agreement. Adjustments in the period of services and in
compensation shall be in accordance with applicable
paragraphs and sections of this Agreement. Any proposed
fees by CONSULTANT are estimates to perform the services
required to complete the project, as CONSULTANT
understands it to be defined. For those projects Involving
conceptual or process development services,activities often
are not fully definable in the initial planning. In any event,as
the project progresses, the facts developed may dictate a
change in the services to be performed,which may alter the
scope. CONSULTANT will inform CITY of such situations so
that changes in scope and adjustments to the time of
performance and compensation can be made as required. If
such change, additional services, or suspension of services
results in an increase or decrease in the cost of or time
required for performance of the services, an equitable
adjustment shall be made, and the Agreement modified
accordingly.
11.CONTROLLING AGREEMENT
These Terms and Conditions shall take precedence over any
inconsistent or contradictory provisions contained in any
proposal, contract, purchase order, requisition, notice-to-
proceed,or like document.
12,EQUAL EMPLOYMENT AND NONDISCRIMINATION
In connection with the services under this Agreement,
CONSULTANT agrees to comply with the applicable
provisions of federal and state Equal Employment
Opportunity, and other employment, statutes and
regulations.
14.EXECUTION
This Agreement, including the exhibits and schedules made
part hereof, constitute the entire Agreement between
CONSULTANT and CITY supersedes and controls over all
prior written or oral understandings.This Agreement may be
amended, supplemented or modified only by a written
instrument duly executed by the parties.
15.LIMITATION OF LIABILITY
CONSULTANTS total liability to CITY for any loss or
damage, Including but not limited to special and
consequential damages arising out of or in connection with
the performance of services or any other cause, including
CONSULTANT's professional negligent acts, errors, or
omissions, shall not exceed the greater of $50,000 or the
total compensation received by CONSULTANT hereunder,
except as otherwise provided under this Agreement, and
HDR Terms&Conditions for Professional Services Page 15 of 15 revised 1012001
w
AGENDA REPORT
FOR: City Council DATE: April 23, 2007
WORKSHOP: April 30, 2007
TO: Gary Crutchfi Mana REGULAR: May 7, 2007
Stan Strebel, A min tray ' . mmunity Services Director
FROM: J se, Finance Manager
SUBJECT: IMAGE PAYMENT PROCESSING EQUIPMENT PURCHASE
I. REFERENCE(S):
I) Image Payment Processing Proposal
2) Equipment Maintenance Agreement
I1. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30/07 Discussion
5/7/07 MOTION: I move to approve the purchase of equipment and services
included in the Image Payment Processing Proposal from Technology
Unlimited, Inc., and authorize the City Manager to sign the related
documents.
111. FISCAL IMPACT:
$32,997.39 - Purchase price of the new equipment plus travel expenses for training.
Travel and training cost would likely be in the $800 range. Ongoing maintenance fees
would be approximately$3,000 (beginning in 2009). It is anticipated this equipment
would be used for at least five years, making the annual cost, including maintenance,
about$9,300.
The purchase would also eliminate a part time position and result in annual wage and
benefits savings. Over the past 12 months those costs have been $9,977.
IV. HISTORY AND BRIEF FACTS:
A) The City receives about 500 payments by check each day. The majority of those are
from utility customers.
New technology has provided improved ways to handle checks received from
customers. Equipment is available to electronically scan the checks and payment
stubs, create a electronic file to keep a copy of those documents, send the file to the
utility billing software to record the payments on account and send the file to the bank
to deposit those funds.
B) Staff attended a demonstration in the spring of 2006 of the Image Payment Processing
system presented by Technology Unlimited, Inc. (TUT). The demonstration was held
at the Basin Disposal, Inc. offices. Since the demonstration, Basin Disposal and
Franklin PUD have purchased the system.
Staff recently visited Franklin PUD to view the system in operation. PUD staff was
very enthusiastic with the system performance and with the results and time savings.
The Franklin County Treasurer's Office and the Yakima County Treasurer's Office
also began using the system just last week. The Benton County Treasurer's Office
and the Walla Walla County Treasurer's Office are also currently using the system.
3(h)
V. DISCUSSION
A) Currently, a part time staff person opens the utility payments received in the mail
each day. The City receives, on average, about 500 checks per day. It takes that staff
person about 4 hours per day to open, sort and total the payments and deliver them to
the utility billing staff to prepare the bank deposit and enter those payments by hand
and/or scan them individually into the utility billing system with a hand held
electronic device.
With this new equipment, the part time position can be eliminated. The customer
service division can absorb that time difference.
B) An added benefit with the machine is having an electronic copy of each check
received and the payment stub on file.
An additional benefit is the reduced time cashier's would need to balance their tills
each day. The checks received over the counter can also be.easily scanned and
deposited electronically to the bank. Each payment window could physically be open
a little longer each day to provide additional customer service.
C) Staff also reviewed whether a lock box service would be more cost efficient to
process check payments. The City of Richland recently began using a Seattle
company to process their utility payments. The customer mails their payment to a
Seattle address for processing. Richland is being charged 11 cents per item where the
check and a payment stub are present and 28 cents per item for exception items.
Exception items are when payments need to be manually handled(checks and stubs
do not equal, multiple stubs and one check, the computer cannot read the writing on
the check, etc.). There are also some additional basic monthly fees. They estimate
they will pay$35,000 per year for this service for approximately 22,000 payments per
month. This equates to about 13 cents per item. If this method was used for Pasco's
utility mail, it would cost approximately$15,600 per year. Therefore this method
does not appear to be cost effective compared to the scanning alternative of$9,300
per year.
D) Staff recommends purchasing system from TUI to take advantage of the time
efficiencies this new technology provides and to include this expenditure in the year
end budget supplement.
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TECHNOLOGY UNLIMITED INC.
-Presents —
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Image Payment Processing
Proposal
QUICY
Dait—oea Kam__y
April 17, 2007
TABLE OF CONTENTS
SECTION 1: MISSION STATEMENT
SECTION 2: COMPANY PROFILE AND EXECUTIVE SUMMARY
SECTION 3: HARDWARE AND SOFTWARE REQUIREMENTS
SECTION 4: PROCEDURES AND PROJECT IMPLEMENTATION
SECTION 5: SYSTEM PRICING FOR PURCHASE / LEASE
SECTION 6: COST JUSTIFICATION
SECTION 7: WARRANTY
SECTION 8: QUALIFICATIONS AND STAFFING
SECTION 9: EXPERIENCE
SECTION 10: UNIQUE I CREATIVE APPROACH
SECTION 11: PAYMENT TERMS
SECTION 12: DOCUMENTATION
Technology Unlimited Inc. Payment Processing System Proposal
Table of Contents April 17,2007
SECTION 1: MISSION / VISION STATEMENT
TO PROVIDE LEADERSHIP AND EXPERTISE IN THE ITEM PROCESSING
AND FINANCIAL EQUIPMENT INDUSTRY.
WE COMMIT TO CREATING A PARTNERSHIP, TOGETHER WITH OUR
CUSTOMERS, BY PROVIDING CONSULTATION, SERVICE, SUPPORT AND
SALES FOR ALL ITEM PROCESSING AND FINANCIAL EQUIPMENT NEEDS.
WE TO KEEPING OUR CUSTOMERS UPDATED AND EDUCATED ON
CURRENT INDUSTRY TRENDS, SO THAT THEY CAN MAKE INFORMED
DECISIONS ABOUT THEIR ITEM PROCESSING AND FINANCIAL
EQUIPMENT NEEDS.
WE COMMIT TO THE HIGHEST DEGREE OF QUALITY AND CUSTOMER
SATISFACTION IN SERVICE, SUPPORT AND SALES.
Technology Unlimited Inc. Payment Processing System Proposal
Section 1 April 17,2007
SECTION 2: COMPANY PROFILE AND EXECUTIVE SUMMARY
This executive summary provides an overview of the operational benefits and features
of the Canon CR180 digital check scanner and Aqurit Capture software proposed by
Technology Unlimited Incorporated.
City of Pasco personnel will sort received payments into agreed upon payment types,
i.e. Single Transactions (one coupon, one check), Multiple Transactions (multiple
checks, one coupon, multiple coupons, one check, or variations of both), Check Only
(over the counter payments or payments through the mail with no coupon) Check and
List,(mortgage company payments) or other job types as required by City of Pasco.
Once the work has been sorted into job types the payments pass through the transport
at up to 180 items per minute on the Canon CR180. Depending on the application/job
type being run, various processes are performed beginning with the autofeeding of the
document, optical character recognition (OCR) reading of all payment coupons and
magnetic character recognition (MICR) read of all checks. Courtesy Amount
Recognition (CAR) and Legal Amount Recognition (LAR) software is applied to each
check image and the system will "pass on confidence" or"reject on confidence" that
check. If the system passes confidence that check dollar amount will not have to be
manually keyed by an operator, but should the CAR/LAR engine "fail on confidence"
that individual check will be presented via image to an operator to key. Ink jet printers
then imprint pertinent endorsement data on the back each document. The front and/or
the back of the documents are imaged and then sorted into individual pockets. The
software will automatically apply specific business balancing rules to each transaction to
assist in balancing the transaction. If the transaction is found to be "in balance"
(Business rules could utilize a rule that states that a transaction is in balance if it is
within $5 of amount billed for example) the transaction is "killed" or automatically
balanced with no further input by the operator. The information captured off the
remittance document and /or check is then transmitted to the mainframe host computer
through a PC attached to the CR180 and posted to the customer's accounts. This
transmission can be via FTP or by sending the posting file to a folder or other location
on the network. This transmission protocol depends on City of Pasco specific network
requirements. The complete system is controlled by a PC processor for ease of training
and daily operation.
The Canon CR180 system utilizes industry standard PC's and can accommodate nearly
unlimited amounts of hard drive storage. In addition a RAID array or other media may
be used to store images and data in the database or on network databases. The
operating system allocates disk and memory more efficiently than any other operating
system available. Due to the Canon CR180 intelligence and Aqurit software features,
you can perform several tasks at one time. Growth of your system is an important
factor in your decision and the Aquracy software allows the customer to upgrade
transports for higher throughput speeds (up to 600 DPM) and also add Check21 Image
Exchange with your financial institution to transmit images directly to the bank thereby
eliminating paper check deposits. The growth potential is the best in the industry.
In conclusion, the experience and flexibility of Technology Unlimited's hardware /
software support and the vast experience in application software from Aquracy
Corporation will provide City of Pasco with a quality long-term payment processing
solution.
Technology Unlimited Inc. Payment Processing System Proposal
Section 2 April 17,2007
SECTION 2: COMPANY PROFILE AND EXECUTIVE SUMMARY
Proposal Submitted By:
Technology Unlimited Incorporated
1179 Andover Park West
Seattle, Washington 98188
(206) 575-8644 FAX (206) 575-4602
Year established: 1983
Robert W. Sproul - Owner
Bidder Contact: Jeff Parmenter
1179 Andover Park West
Seattle, Washington 98188
(206) 812-0624 FAX (206) 575-4602 E-Mail jeff @tuiusa.com
Company History
Technology Unlimited began operations in 1983, providing complete on-site
maintenance of NCR item processing equipment for numerous financial institutions.
Immediately thereafter, the company moved into the sales and service of many other
types of financial and item processing equipment. Currently, our dealerships,
distributorship and authorized maintenance service include: NCR, Unisys, Canon,
Maverick, Opex, Sharp, Standard Register, Kodak, Banctec, Glory, Billcon, Brandt,
Hedman and many others.
Technology Unlimited sells and maintains many different models and makes of item
processing equipment for hundreds of financial and retail institutions throughout
Washington, Oregon, California, Idaho, Montana, Texas, Nevada and British Columbia.
We maintain over 1200 Unisys and NCR proof machines for customers such as:
Washington Mutual, Columbia Bank, Union Bank of California, DHL Express, Costco,
Puget Sound Energy, King County Treasurer, Everett Clinic, EDS WA/CA, FISERV
WA/OR/CA, Premera Blue Cross of WA/AK and many other customers in the Western
U.S. We provide our customers with a mixture of on-site and/or depot maintenance
contracts. This maintenance approach allows Technology Unlimited the ability to
provide our customers with increased response time, decreased down time and
unsurpassed customer service. It also gives us the ability to.tailor our service to the
customers needs quickly and efficiently. Our Business philosophy is to work WITH our
customers and tailor our service, sales and price to fulfill their needs.
Technology Unlimited Inc. Payment Processing System Proposal
Section 2 April 17,2007
SECTION 3: HARDWARE / SOFTWARE REQUIREMENTS
CANON HARDWARE INCLUDES:
CR180 BASE UNIT WITH FRONT/REAR IMAGE CAMERAS, ENDORSER
Base transport with image cameras, endorser and system software
SCSI /USB 2.0 INTERFACE
Communication with PC for Data and Images
DATABASE / IMAGE
SERVER DELL PRECISION 380 IMAGE/DATABASE SERVER
includes Windows XP Pro, 2-25OGB HD, 100 TX Adapter card, KB, CD-
R Drive, and 17"Flat Panel Color Monitor
BASE AQURACY INCLUDES:
Base Functionality
Feature Rich Remittance System
Full, partial/odd payments
Single, multiple, automatic modes
Balancing
Instant Reject Reentry and Balancing
Multi-Institution (Lockbox)Capability
Multi-Day Processing
Advanced Editing
Multi-Media Support
Image Functionality
Bi-tonal or Gray Scale Image Capture
CD-ROM/DVD Generation
Image Reject Reentry and Balancing
CAR Functionality (Optional)
Open PC Platform
Highly Scaleable
Supports Bi-tonal or Grayscale Images
Reads Personal or Commercial checks
Technology Unlimited Inc. Payment Processing System Proposal
Section 3 April 17,2007
t
SECTION 4; TECHNICAL SUPPORT INFORMATION,
PROCEDURES AND PROJECT IMPLEMENTATION
SETUP AND MAINTENANCE
Technology Unlimited is an authorized sales and service provider of NCR products and
services. The corporate headquarters is in Seattle, Washington with field offices in
Vancouver, Washington, San Leandro, California, Glendale, California, Spokane,
Washington, Houston, Texas, and San Diego, California
The maintenance pricing is based on an annual contract. Time and material contracts
are available but not recommended for such a time critical process.
Technology Unlimited agrees to no more than a four (4) hour response time from
placement of service call in most geographic regions. Customer will receive confirming
call not more than 45 minutes from time initial call was placed. Should service call be
placed with less than four hours before end of contracted service hours, Technology
Unlimited will employ every effort to respond that day; otherwise call will be responded
to next day at beginning of service hours.
Software support is performed via internet connectivity utilizing WebEx software.
Software support carries a two hour response time from the time the call is placed.
Every effort is made to respond to software support calls under the two hour response
window and the majority of support calls are typically handled over the phone with no
remote support required.
Preventive maintenance calls are scheduled with the customer to provide the least
amount of work disruption. Generally a preventive maintenance call lasts two hours and
two PM's are allowed annually as part of service contract.
Customer preventive maintenance includes the weekly cleaning of transport track,
weekly sensor cleaning, image camera cleaning and the changing of the autofeed
scrubber wheels. Technology Unlimited will train and educated customer on the proper
cleaning procedures and schedules.
'technology Unlimited Inc. Payment Processing system Proposal
Section 4 April 17,2007
INSTALLATION PROCEDURES AND RESPONSIBILITIES
Step 1: Requirement Definition - Customerrl-LII
Step 2: Pre-installation site Survey - Customer/TLII
Step 3: Provide Sample Documents - Customer
Step 4: Provide Test File - TUI
Step 5: Testing - Customer/TUI
Step 6: Hardware Installation -TUI
Step 7: Hardware Testing -TUI
Step 8: Software Installation - TLII
Step 9: Software Testing - Customer/TUI
Step 10: Training - Customer/TUI
Step 11: System Implementation - Customer/TUI
Step 12: System Acceptance - Customer
Day 0 - Signed Agreements, equipment ordered.
Day 5 - Customer receives conversion surveys from TUI.
Day 10 - Customer returns completed surveys to TUI.
Day 15-17 - Pre-installation site visit, review conversion survey and
implementation schedule.
Day 20-45 - Software Programming.
Day 45-50 - Equipment delivery, staging and testing off-site.
Day 50-51 - Delivery of equipment to customer site.
Day 51-52 - Hardware installation, testing and certification.
Day 52-60 - Training, on-site testing and Live implementation
Day 60 - Customer certification of completion.
*Very conservative estimate.
Technology Unlimited Inc. Payment Processing System Proposal
Section 4 April 17,2007
SECTION 5: SYSTEM PRICING
HARDWARE PRICING CANON CR180 IMAGE SYSTEM
CANON CR180 DIGITAL CHECK TRANSPORT $ 4,890.00
• FMC 1 Bin Check Jogger
DATABASE/IMAGE/SERVER $ 2,100.00
DELL Precision 380 3.8GHz
2 250 GB Hard Disk Drives
2.0 GB Ram, Keyboard, Mouse, Win XP Pro, SQL 5 CAL
• 17" Flat Panel Color Monitor
Installation/Software Load $ 500.00
SOFTWARE PRICING
A02 AQURIT REMITTANCE SOFTWARE $ 12,595.00
-Aqurit Capture Tier 2 Canon CR180
Aqurit Server 1
•Aqurit PassONCE CAR/LAR Module
250,000 uses renews annually
Barcode/OCR Processing Client 1
FormXtra 125,000 uses renews annually
Aqurit Report Activator
-Aqurit Invoice Keying Client
Mark Sense
Non-Encode Option
AQ2 xChange CHECK21 MODULE $ 2,995.00
Electronic Deposit of Checks to Bank
MAINTENANCE / INSTALLATION PRICING
Canon CR180 Hardware Maintenance (Annual) $ 800.00
Software Maintenance (Annual) $ 2,123.00
On-Site Training and Installation $ 4,500.00
Subtotal $ 30,503.00
Sales Tax $ 2,494.39
TOTAL SYSTEM COST $32,997.39*
* Plus customary travel and living expenses
Technology Unlimited Inc. Remittance Processing System Proposal
Section 5 April 17,2007
SECTION 5: SYSTEM PRICING - 60 MONTH LEASE
HARDWARE PRICING CANON CR180 IMAGE SYSTEM
CANON CR180 DIGITAL CHECK TRANSPORT $ 4,890.00
• FMC 1 Bin Check Jogger
DATABASE/IMAGE/SERVER $ 2,100.00
DELL Precision 380 3.8GHz
2 250 GB Hard Disk Drives
2.0 GB Ram, Keyboard, Mouse, Win XP Pro, SQL 5 CAL
17" Flat Panel Color Monitor
Installation/Software Load $ 500.00
SOFTWARE PRICING
AQ2 AQURIT REMITTANCE SOFTWARE $ 12,595.00
-Aqurit Capture Tier 2 Canon CR180
-Aqurit Server 1
Aqurit PassONCE CAR/LAR Module
250,000 uses renews annually
Barcode/OCR Processing Client 1
FormXtra 125,000 uses renews annually
Aqurit Report Activator
-Aqurit Invoice Keying Client
Mark Sense
Non-Encode Option
MAINTENANCE / INSTALLATION PRICING
Canon CR180 Hardware Maintenance (Annual) $ 800.00
Software Maintenance (Annual) $ 2,123.00
On-Site Training and Installation $ 4,500.00
TOTAL MONTHLY LEASE COST $ 847 .30=
* Plus customary travel and living expenses. $1.00 buyout at end of 60 month lease.
Technology Unlimited Inc. Remittance Processing System Proposal
Section 5 April 17,2007
SECTION 6: COST JUSTIFICATION
HARDWARE/SOFTWARE/INSTALLA71"I0N $ 27,580.00
Total System Cost $ 27,580.00*
Depreciated by 60 Months
Monthly Cost $ 459.66
Daily Cast (20 days per month) $ 22.48
*Does not include consumable items or maintenance costs
Technology Unlimited Inc. Remittance Processing System Proposal
Section 6 April 17,2007
SECTION 7: WARRANTY
Technology Unlimited and A02 Corporation warrant their application
Hardware/Software) for a period of 90 days from date of customer acceptance of the
system. Warranty shall cover all defects in material and workmanship, parts, labor, and
any associated travel time.
Technology Unlimited Inc. Payment Processing System Proposal
Section 7 April 17,2007
SECTION 8: QUALIFICATIONS AND STAFFING
The following resumes constitute all Technology Unlimited employees that may be
associated with this project. The project manager will be Sylvia Valdez, CTO
Technology Unlimited. Sylvia oversees every remittance project Technology Unlimited
installs or has installed since 1994 (Currently over 100). She has the technical
experience as well as application knowledge to successfully manage the proposed
project. Being the CTO, Sylvia coordinates the entire installation/support team (9
employees) on a daily basis making her the best suited for this installation and ongoing
support. Technology Unlimited currently may utilize or has available for this project: 5
technical professionals, 4 training personnel, 6 service technicians, 4 administrative
personnel and 1 sale professional with 18 years of experience.
Technology Unlimited Inc. Remittance Processing System Proposal
Section 8 April 17,2007
SECTION 9: EXPERIENCE
Technology Unlimited has been installing and supporting remittance processing
systems since 1992. Over 100 customers have successfully implemented remittance or
payment processing systems since that time. Our customers range from the very large
such as DHL (30 million payments per month), Costco (400,000 month) and Puget
Sound Energy (2.4 million month), to the medium volume such as Spokane County
Treasurer (220,000 annually), AAA of Washington (50,000 month) to the smaller
customers such as Clallam County PLID (16,000 month), Everett Clinic (13,000 month)
and Tillamook PLID (10,000 month). Technology Unlimited works with each and every
customer to guarantee the system will perform to their specific applications and give a
complete return on investment.
Technology Unlimited Inc. Remittance Processing System Proposal
Section 9 April 17,2007
SECTION 10: UNIQUE/CREATIVE APPROACH
Since Technology Unlimited has vast experience in implementing remittance processing
systems we have created some unique approaches to our implementation that are not
typically offered by other vendors they are as follows:
- Complete system implementation and support:
Technology Unlimited installs and maintains the hardware, software and provides
on-going support. Customers only have to make one phone call to receive answers to
questions or support issues.
- Local Hot-Staging of entire system:
Technology Unlimited will hot-stage all equipment in our Seattle/Vancouver locations.
We set up and completely test the hardware and software prior to installation. This
eliminates any costly downtime during the implementation.
- Local company providing local service/support:
Since we are a local company, response to support issues is timely and more cost
effective than non-local vendors.
- Customer Service:
We listen to our customers to facilitate them in implementing the proper solution and
continued support they ask for. Our reputation in the local area is vitally important to us
and continuing customer support/service is what keeps customers recommending us to
others in the industry.
Technology Unlimited Inc. Remittance Processing System Proposal
Section 10 April 17,2007
SECTION 11 : PAYMENT TERMS
Upon agreement and contract signatures, 50% of the total contracted amount is due.
An additional 30% is due at the time of hardware delivery and the remaining 20% at the
completion of customer training and acceptance.
Technology Unlimited Inc. Remittance Processing System Proposal
Section 11 April 17,2007
SECTION 12: DOCUMENTATION
The following attached information outlines both the Canon CR180 image processing
transport as well as AQ2 Aqurit software.
Technology Unlimited Inc. Remittance Processing System Proposal
Section 12 April 17,2007
Technology Unlimited Inc. 1179 Andover Park West 9 Seattle, Washington 98188
(206)575-8644 Fax(206)575-4602 www.tuiusa.com
TECHNOLOGY UNLIMITED, INC.
EQUIPMENT MAINTENANCE AGREEMENT
Agreement No.
April 20, 2007
This equipment maintenance agreement is entered into by and between TECHNOLOGY
UNLIMITED, INC., at 1179 Andover Park West, Seattle, Washington and CITY OF PASCO
("COP"), 525 North 3rd Avenue, Pasco, Washington 99301. This contract is separate and not part
of the Master Agreement with Technology Unlimited, Inc. dated
The parties to this contract agree as follows:
Article L SCOPE OF SERVICES
Technology Unlimited Incorporated shall perform, or cause to be performed, the Services
generally described below and identified and defined as Technology Unlimited Incorporated
responsibilities throughout this contract (the"Services"):
Technology Unlimited Incorporated will provide on-site maintenance on ONE (1) Canon
CR180 Remittance Processor (the "Equipment') with quality parts and install them to suggested
manufacturer specifications, at the following location: 1) 525 North 3'd Avenue, Pasco, Washington
99301_ Maintenance shall include all parts and labor except as follows-
-Any normal consumable supply items such as ribbons,
ink rollers, bulbs, feeder kits and lister paper.
-Any service due to accident involving damage to
equipment, operator negligence, or problems caused by
any unauthorized modifications, misuse or relocation of
equipment.
-Any problems due to outside environment, such as power
failure, excessive dirt and dust, or failure by customer to
maintain machine according to manufacturer specifications.
In addition to the above, Technology Unlimited Incorporated will also perform preventive
maintenance on the equipment on a mutually agreed upon schedule to be provided after the initial
installation is completed. The preventive maintenance will include two scheduled calls per year.
Article II. INDEPENDENT CONTRACTOR
It is understood and mutually agreed upon by the parties that Technology Unlimited
Incorporated shall perform the services pursuant to this contract as an Independent Contractor and
not as an agent or employee of CITY OF PASCO.
1
April 20, 2007
Article III. CONTRACT TERM AND SERVICE HOURS
A. The term of this contract shall be ONE (1)year beginning on the date indicated on the
last page of this contract as"start date."
B. Technology Unlimited Incorporated will provide Services for CITY OF PASCO between
the hours of 8 A.M. and 5 P.M. Monday through Friday, excluding holidays.
C. Technology Unlimited Incorporated will meet quarterly or as necessary with CITY OF
PASCO representatives to discuss status of service and equipment availability.
Article IV. MAINTENANCE FEE AND PAYMENT
A. CITY OF PASCO shall pay Technology Unlimited Incorporated annually for Services
rendered. (See Addendum A.) Payment made to Technology Unlimited Incorporated shall not
constitute acceptance of the work or any portion thereof which is not in accordance with this
contract.
B. CITY OF PASCO shall pay Technology Unlimited Incorporated upon receipt and
approval of Technology Unlimited Incorporated's invoice. Technology Unlimited Incorporated will
bill thirty (30)days in advance of maintenance.
Article V. ASSIGNMENT AND SUBCONTRACTS
A. This contract shall not be assigned by either party, either in whole or in part, without the
prior written approval of the other, not to be unreasonably withheld. Any attempted assignment
without such written consent shall be void.
B. As required by the work and if approved in advance in writing by CITY OF PASCO ,
Technology Unlimited Incorporated may enter into contracts with other firms for services not
normally performed by Technology Unlimited Incorporated.
C. Any subcontract entered into by Technology Unlimited Incorporated subsequent to the
execution of this contract must be approved in writing by CITY OF PASCO. This paragraph shall
be included in all subcontracts with contractors and/or consultants with whom Technology
Unlimited Incorporated will require services.
2
April 20, 2007
Article VI. CON"fROL AND APPROVAL
A. Technology Unlimited Incorporated will appoint a Representative who will be in charge of
the maintenance contract for Technology Unlimited Incorporated and have authority to make
binding decisions on behalf of Technology Unlimited Incorporated (the "Representative"). All
notices regarding maintenance services required or changes in the contract shall be sent to the
Representative. Technology Unlimited Incorporated's Representative for this maintenance
contract will be:
Name Jeff Parmenter
Title Vice President
Address 1179 Andover Park West
City, State, Zip Seattle,WA, 98188
Phone# (206) 575-8644
Article VII. INSURANCE
A. Technology Unlimited Incorporated shall keep in force during the contract period, liability
insurance coverage, adding CITY OF PASCO as an additional insured, in the minimum amounts
indicated below:
Public Liability $ 1,000,000 combined single limit
Automobile Liability $ 1,000,000 combined single limit
Umbrella Excess Liability $ 2,000,000 per occurrence over
and above the limits described
above for Public and Automobile Liability.
B. Technology Unlimited Incorporated will furnish CITY OF PASCO with certificates
showing evidence of insurance coverage as defined above.
Article VIII. 'TERMINATION
CITY OF PASCO may terminate this contract at any time by providing Technology
Unlimited incorporated thirty (30) days written notice of such termination. The maintenance
contract can be discontinued at any time without penalty or additional cost to CITY OF PASCO.
Technology Unlimited Incorporated may terminate this agreement by providing CITY OF PASCO
thirty(30)days written notice.
Article IX. LIMITATION OF LIABILITIES
Neither party is liable for any consequential, incidental, indirect or special damages,
including commercial loss, which directly or indirectly arises from Services provided by Technology
Unlimited Incorporated.
3
April 20, 2007
Article X. CHANGES AND EXTRA WORK
No modification 'to this contract shall be effective unless in writing and signed by both
parties.
Article XI. CONFIDENTIALITY
Technology Unlimited Incorporated shall hold and maintain as strictly confidential all
information concerning the business of CITY OF PASCO, CITY OF PASCO financial affairs, CITY
OF PASCO customers, relations with clientele and employees, as well as any other information
which may be specifically classified as confidential by CITY OF PASCO.
Article XII. LAWFULNESS
If a court or a governmental agency with proper jurisdiction determines that any provision of
this Agreement is unlawful, the remainder of the Agreement will continue in effect.
Article XIII. ENTIRE AGREEMENT
This document constitutes the whole contract between the parties. The contract shall not
be modified or amended except by written amendment, executed by both parties. All notices
required be given hereunder shall be deemed to be sufficiently given if mailed by certified mail,
postage prepaid, to the address noted below.
IN WITNESS WHEREOF, the parties hereto have entered into this contract dated this day
Of 2007"Start Date".
City of Pasco Technology Unlimited, Inc.
525 P Street 1179 Andover Park West
Pasco, Washington 99301 Seattle, Washington 98188
BY: BY:
Title Title
4
TECHNOLOGY UNLIMITED, INC.
EQUIPMENT MAINTENANCE AGREEMENT
ADDENDUM A
April 20, 2007
ADDENDUM TO MAINTENANCE AGREEMENT
With respect to Article IV A., the fees for services rendered shall be as follows:
For service of ONE (1) Canon CR180 Remittance Processor as described more fully in Article I.
$ 800.00 per year
The service fee shall be for the above equipment per year.
for CITY OF PASCO for TECHNOLOGY UNLIMITED
Title Title
5
AGENDA REPORT
FOR: City Council DATE: April 20,2007
WORKSHOP: April 30, 2007
TO: Gary Crutch#", anager REGULAR: May 7, 2007
Stan Strel l,: i istr tive &Community Services Director
FROM: Jim h , Finance Manager
SUBJECT: FIRE HYDRANT METER DEPOSIT
1. REFERENCE(S):
Proposed Ordinance
1I. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30/2007 DISCUSSION
5/7/2007 MOTION: I move to adopt Ordinance No. providing for a
change in the Hydrant Meter Refundable Deposit Amount and amending
section 3.07.160 (D) of the Pasco Municipal Code and to authorize the
publication by summary only.
III. FISCAL IMPACT:
None
IV. HISTORY AND BRIEF FACTS:
With the required dust control standards, contractors are relying heavily upon obtaining
water for that purpose through City fire hydrants. The City charges for the water going
through Fire Hydrant Meters rented to those contractors. These are specialized meters
that track the amount of water flowing through so the water consumption can be billed.
The water is charged at 56 cents per 1,000 gallons of water going through the meter per
the PMC. This charge is almost identical to the water consumption rate of 54 cents per
one hundred cubic feet to residential and commercial utility accounts. Pasco also charges
a monthly usage or base fee for those meters.
The cost of Hydrant Meters has risen dramatically over the years. The PMC requires a
refundable deposit be charged for Fire Hydrant Meters of$100. The current replacement
cost for new meters is closer to $875 plus sales tax. Staff has actually been collecting a
deposit of$600 since 1995 because of the increased cost of the meters at that time. The
PMC has not been changed.
Ten years ago the City owned about 20 hydrant meters and only about half of those were
rented at any given time for dust control. Today the City owns approximately 60 meters.
About 50 are currently rented and in the field and an additional 10 are in inventory.
V. DISCUSSION:
With the rising cost of inventory, the municipal code could be amended to allow staff to
collect a deposit of sufficient amount to more closely cover the replacement cost of any
lost or damaged teeters. This deposit helps to remind the contractor to take care of city
property. The contractor can get their deposit back when the City's meter is returned.
VI. OTHER COMMENTS:
The Finance Manager could determine the amount of the deposit needed to replace a
meter,plus sales tax. It is suggested that the position be given the discretion to change
the deposit amount based on replacement costs without Council approval.
3(i�
ORDINANCE NO.
AN ORDINANCE AUTHORIZING A CHANGE IN THE HYDRANT
METER REFUNDABLE DEPOSIT AMOUNT AND AMENDING
CHAPTER 3.07.160 OF THE PASCO MUNICIPAL CODE ENTITLED
"WATER USE FEES".
WHEREAS, the Hydrant Meter Rental Deposit Fee for meters to provide dust control
within the city was last amended in 1977; and
WHEREAS, the actual cost of a Fire Hydrant Meter is currently substantially higher than the
fee as provided; and
WHEREAS, the increase in the number of Fire Hydrant Meters owned by the City in the
past 10 years has increased substantially thereby increasing the risk of loss; and
WHEREAS, the City Council finds, after analysis and recommendation of the Finance
Manager, that allowing that position to set the deposit amount for those meters in relation to cost
is appropriate ; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO HEREBY
ORDAIN AS FOLLOWS:
Section 1. Effective immediately, the amount to be collected as a deposit for the use of
a Fire Hydrant Meter shall be changed to reflect a deposit fee not to exceed 110%of the cost of a
new hire Hydrant Meter as determined by the Finance Manager.
Section 2. Section 3.07.160 (D) entitled "Fire Hydrants" of the Pasco Municipal Code
shall be and hereby is amended and shall read as follows:
D) Fire Hydrants:
1) Meter Rental:
a) Refundable Deposit $190 A9 13.20.070
Not to exceed 110% of
Cost, as determined by
the Finance Manager
b) Non-refundable Removal Fee $25.00 13.20.070
c) Monthly Base Rental Fee $47.95
d) Late Payment and Not Returning $50.00
Meter after 48 Hrs. (per day)
2) Hydrant Rental --outside corporate $15.00 13.20.060
limits, per year
Section 3. This Ordinance shall take full force and effect after its approval, passage
and publication as required by law. .
PASSED by the City Council of the City of Pasco, Washington and approved as
provided by law this 7th day of May, 2007.
Joyce Olson
Mayor
ATTEST: APPROVED AS TO FORM:
Debra Clark Leland B. Kerr
City Clerk City Attorney
AGENDA REPORT
TO: City Council April 25, 2007
FROM: Gary Crutchfi ty Manager Workshop Mtg.:4 /30/07
Regular Mtg.: 5/7/07
SUBJECT: East"A" Streetl Design Standards
1. REFERENCE(S):
1. Vicinity Map
2. Proposed Resolution
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30 Discussion
5/7 MOTION: I move to approve Resolution No. approving a design
plan for East"A" Street.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A) Staff presented to Council at its March 12 Workshop meeting the proposal to
pursue a modified design for reconstruction of East"A" Street, generally from the
new north/south truck route easterly to SR12. That proposal involved a three-lane
design plan for the initial reconstruction; if traffic volumes warrant additional
lanes in the future, a four-lane section could be developed within the same right-
of-way. Both options are illustrated in Exhibit A of the proposed resolution.
V. DISCUSSION:
A) Given the investment by the city in the north/south truck route linking East "A"
Street to the East Lewis interchange with SR12, coupled with the benefits of
eliminating truck traffic on East Lewis Street and encouraging more industrial
investment south of"A" Street, staff recommends Council approve the proposed
resolution. Doing so will formalize the city's intent to accommodate industrial
traffic on East "A" Street and inform affected property owners of the city's
intentions.
30)
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RESOLUTION NO.
A RESOLUTION approving a design plan for East"A" Street.
WHEREAS, adequate arterial streets and truck routes for the movement of goods and
services within and through the community are a necessity; and
WHEREAS, adequate developed and improved rights-of-ways for truck routes are necessary
for the continued and future orderly development of the city and serve to improve and secure
property values as well as economic viability; and
WHEREAS, present truck route designations include "A" Street between Oregon Avenue
(SR397 and SR12) as well as East Lewis Street between Oregon Avenue (SR397) and SR12; and
WHEREAS, the City of Pasco has caused to be constructed recently a new truck route
connecting East "A" Street with the East Lewis Street interchange with SR12, thereby relieving the
need to use East Lewis Street as a designated truck route and reducing the use of the East "A" Street
intersection with SR12 for truck movements; and
WHEREAS, the Public Works Department has recommended the City Council authorize
both a three-lane and four-lane option for design and reconstruction of East "A" Street between the
new truck route and SR-12, recognizing that the three-lane design will accommodate anticipated
truck traffic volumes and the four-lane option may be used within the expected right-of-way if traffic
volume increases warrant such a change in the future; and
WHEREAS, the City Council has reviewed the East "A" Street design plan options and has
determined the plan appropriately accommodates the anticipated changes in truck traffic patterns as
well as the need to properly serve the intended future land uses within the vicinity; NOW
THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO RESOLVE
AS FOLLOWS:
Section 1: That the East"A" Street roadway plan, composed of a three-lane plan and a four-
lane plan, shall be substantially as illustrated in Exhibit"A" attached hereto.
Section 2: That upon opening of the new truck route for public use, it shall be formally
designated and signed as such and East Lewis Street shall be removed from the list of designated
truck routes.
Passed by the City Council of the City of Pasco this day of , 2007.
Joyce Olson,Mayor
ATTEST: APPROVED AS TO FORM:
Sandy Kenworthy, Deputy City Clerk Leland B. Kerr, City Attorney
a' ROW
13=� ,3'
LANE i.ANE LANE LANE SiDEW
- -I i-o"- -- - MR---c J i T
PLANTER 15' 15'
BIKE PATH EXISTING EOP EXISTING EOP PLANTER
4 LAN E
PROPOSED "A" STREET FROM BILLINGS TO SR- 12
4'
18 LANE
LANE LANE SIDENYAL K
PAR 15' 15' 9'
BIKE PATH DUSTING EOP EXISTING EOP PLANTER
3 LAN E 3
PROPOSED "A" STREET FROM BILLINGS TO SR- 12
a
RECOMMENDED CHANGE 22 A" STREET CROSS SECTIONS NOT TO SCALE
AGENDA REPORT
TO: City Council April 26, 2007
PROM: Gary Crutchfi 1 Manager Workshop Mtg.: 4/30/07
SUBJECT: Adjustment of 'ouncil District Boundaries
1. REFERENCE(S):
1. PMC Chapter 1.10
2. Council District Boundary Maps (options A, B and C) (Council packets only; copy
available for public review in the City Manager's office and at the Pasco Public
Library.)
11. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
4/30: Discussion
Ill. FINANCIAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A) PMC Chapter 1.10 provides that the city be divided into five Council districts,
principally to assure geographic representation on the City Council. Thus, five of
the seven Council seats are each filled by an individual residing in the respective
district, while the remaining two Council seats are filled by "at large" Council
representatives (no restriction on residence location). PMC 1.10 also provides that
Council district boundaries must be nearly equal, in that none of the Council
districts may be more than 10 percent larger or smaller(in terms of population) than
any other Council district.
B) The population of each Council district (and voting precinct) has been updated to
reflect housing units completed since the 2000 census. Council district boundaries
must coincide with voting precinct boundaries (which are fixed by Franklin
County). Staff submitted to the Franklin County Auditor in March a map of
proposed voting precinct boundaries, to better reflect the population changes over
the past six years. While many of the city's suggestions were accepted for the
western portion of the city, most of those in the central portion (those within the
bypass highway) were not. To complicate matters further, the Auditor's office
determines voting precinct boundaries by "registered voters" — not population;
consequently, the city's primary guideline is very different than the County's
primary consideration. The Franklin County Commissioners tentatively approved
the 2007 precinct changes on April 9; final approval is expected by May 2.
C) The Council district boundaries were last revised in 2005 in advance of the general
municipal elections that year. The adjustments were required at that time due to
population growth. Since then, again because of population growth, District 3 (the
least populous) now contains a population 23 percent smaller than District 5 (the
most populous).
D) PMC Chapter 1.10 requires the Council district boundaries to be adjusted but that
such adjustment cannot occur "... less than 60 days prior to the next general
municipal election..." Due to state legislative action last year, however, the 2007
primary election (representing the "next general municipal election") is scheduled
for August 21; 60 days prior to that date is June 20. To complicate matters further,
the candidate filing period is also much earlier now; it will occur between June 4
and 8. In view of the state's changes, Council district boundaries should be
formally amended by May 21 (two weeks prior to the filing period), if not sooner.
3(k)
E) To add another constraint, state law requires the city to conduct at least one public
hearing on the proposed plan and that such hearing occur at least one week before
formal adoption of the plan.
V. DISCUSSION:
A) PMC 1.10.130 obligates the City Manager to define City Council district
boundaries and 1.10.010 provides guidelines to be considered in fixing those
boundaries. Given the extraordinary growth in population over the past few years
(principally in the western plateau) and the guidelines for modification, the historic
arrangement of district boundaries are due for radical change. Map options A and B
reflect two such radical change scenarios which would better reflect the guidelines
than does the historical arrangement of district boundaries. Unfortunately, the time
constraints imposed by actions of the state legislature have made it impractical to
have a sweeping change in district boundaries and still provide the community
adequate time to digest and respond to the magnitude of such a change.
B) In view of the time constraints, staff suggests option C be adopted for the current
year and Council schedule a more timely process for late 2008 or early 2009 for
implementation of option A or B (as either may be modified further to reflect
additional population growth by then).
C) Procedurally, Council must conduct a public hearing at least one week prior to
adoption of any change. Given the time constraints, again, one of the following
timelines should be used:
• Public hearing on May 7, adoption on May 14 (special meeting);
• Public hearing on May 7, discuss on May 14, adoption May 21;
• Public hearing on May 14 (special meeting), adoption May 21.
The third option provides the most time to inform the community of the intended
changes and result in adoption at least two weeks prior to the candidate filing
period.
CHAPTER 1.10 VOTING DISTRICTS
1.10.010 NUMBER OF DIVISIONS - EQUAL POPULATION IN
EACH ................................................................................................. 15
1.10.020 DISTRICT ONE. ................................................................... 15
1.10.030 DISTRICT TWO. ................................................................... 15
1 .10.040 DISTRICT THREE. ............................................................... 15
1.10.050 DISTRICT FOUR. ................................................................. 16
1.10.060 DISTRICT FIVE. ................................................................... 16
1.10.070 ELECTION OF COUNCILMEN COUNCILMAN-AT-LARGE. ..... 16
1 .10.080_ COUNCILMEN - RESIDENTIAL REQUIREMENT
REMOVAL .......................................................................................... 16
1.10.090 RE-ESTABLISHMENT OF DISTRICT BOUNDARIES. ............. 17
1 10.100 ANNEXATION. ..................................................................... 17
1.10.110 RECALL PETITIONS. ............................................................ 17
1.10.1.20 FILLING VACANCIES. .......................................................... 17
1 .10.130 VOTING PRECINCTS............................................................ 17
1.10.010 NUMBER OF DIVISIONS - EQUAL POPULATION IN
EACH. The City is divided into five voting districts. Each district shall
be as nearly equal in population as possible; compact as possible;
consist of geographically contiguous area; be configured as to not favor
or disfavor any racial group or political party; and to the extent feasible,
coincide with the existing recognized natural boundaries so as to
preserve existing communities of related and mutual interest. (Ord.
3472 Sec. 1, 2001; Ord. 1472 Sec. 1, 1971 .)
1.10.020 DISTRICT ONE. Voting district one shall encompass the
area within the City of Pasco comprised of precinct numbers one, two,
and three, as those precincts are described on the maps and property
descriptions on file with the Auditor of Franklin County. (Ord. 3724 Sec.
1, 2005; Ord. 3625 Sec. 1, 2003; Ord. 3476 Sec. 1, 2001; Ord. 3240 Sec.
1, 1997; Ord. 2943, Sec. 1, 1993; Ord. 2824 Sec. 1, 1991; Ord. 1871
Sec. 1 (part), 1977.)
1.10.030 DISTRICT TWO. Voting district two shall encompass the
area within the City of Pasco comprised of precinct numbers nine, ten,
eleven, twelve, fifteen and twenty-seven as those precincts are described
on the maps and property descriptions on file with the Auditor of
Franklin County. (Ord. 3724 Sec. 2, 2005; Ord. 3625 Sec. 2, 2003, Ord.
3476 Sec. 2, 2001; Ord. 3240 Sec. 1, 1997; Ord. 2943, Sec. 2, 1993;
Ord. 1871 Sec. 1 (part), 1977.)
1.10.040 DISTRICT THREE. Voting district three shall encompass
the area within the City of Pasco comprised of precinct numbers four,
five, six, seven, eight, thirty-three and thirty-four as those precincts are
described by the maps and property descriptions on file with the Auditor
of Franklin County. (Ord. 3724 Sec. 3, 2005; Ord. 3625 Sec. 3, 2003;
Ord. 3476 Sec. 3, 2001; Ord. 3240 Sec. 1, 1997; Ord. 2284, Sec. 1,
1981; Ord. 1871 Sec. 1 (part), 1977.)
1.10.050 DISTRICT FOUR. Voting district four shall encompass
the area within the City of Pasco comprised of precinct numbers twenty-
nine, thirty-one, and thirty-two, as those precincts are described on the
maps and property descriptions on file with the Auditor of Franklin
County. (Ord. 3724 Sec. 4, 2005; Ord. 3625 Sec. 4, 2003; Ord. 3476
Sec. 4, 2001; Ord. 3240 Sec. 1, 1997; Ord. 2824 Sec. 2, 1991; Ord. 2365
Sec. 1, 1982; Ord. 1871 Sec. 1 (part), 1977.)
1..10.060 DISTRICT FIVE. Voting district five shall encompass the
area within the City of Pasco comprised of precinct numbers thirteen,
fourteen, sixteen, seventeen, eighteen, nineteen, twenty, twenty-one,
twenty-two, twenty-three, twenty-four, twenty-five, twenty-six, twenty-
eight, and thirty, as those precincts are described on the maps and
property descriptions on file with the Auditor of Franklin County. (Ord.
3724 Sec, 5, 2005; Ord. 3625 Sec. 5, 2003; Ord. 3479 Sec. 1, 2001; Ord.
3476 Sec. 5, 2001; Ord. 3365 Sec. 1, 1999; Ord. 3240 Sec. 1, 1997; Ord.
2824 Sec. 3, 1991; Ord. 2365 Sec. 2, 1982; Ord. 2284 Sec. 2, 1981; Ord.
1871 Sec. 1 (part), 1977.)
1.10.070 ELECTION OF COUNCILMEN COUNCILMAN-AT-LARGE.
The qualified electors of each voting district, and they only, shall
nominate from among their number candidates for the office of
councilman of such voting district to be voted for at the following general
election. Such candidates shall be nominated in the same manner as
other candidates at the primary election held on the third Tuesday of
September preceding a general election. In addition, two councilmen,
designated councilmen-at-large, shall be nominated in a similar manner.
One of the councilman-at-large positions shall be designated as council
position number one. The City Clerk, not fewer than ten days prior to
the time for filing declarations of candidacy in the next councilman
election, shall designate, by consecutive numbers, commencing with
number two and ending with number seven, all other positions on the
council to be nominated by district or to be elected-at-large. The two
candidates having the highest vote totals for each council position shall
be certified as having been nominated and shall run for that position in
the general election. Councilmen shall be elected by all of the qualified
voters of the City and the person receiving the highest number of votes
for the office of councilman for the position for which he is a candidate
shall be declared duly elected. (Ord. 1955 Sec, 1, 1978; Ord. 1472 Sec.
7, 1971.)
1.10.080 COUNCILMEN - RESIDENTIAL REQUIREMENT
REMOVAL. Councilmen elected from districts shall be residents of the
district from which they are elected. Removal of a councilman from the
district from which he was elected shall create a vacancy in that office;
provided, that no change in the boundaries of districts shall affect the
term of any councilman,but he shall serve out his term in the district of
his residence at the time of his election. (Ord. 1873 Sec. 1, 1977; Ord.
1472 Sec. 8, 1971.)
1.10.090 RE-ESTABLISHMENT OF DISTRICT BOUNDARIES. The
Council shall re-establish district boundaries whenever the population in
any district exceeds by ten percent or more the population in any other
district; provided, that no change in the boundaries of any district shall
be made within sixty days next before the date of a general municipal
election, nor within twelve months after the districts have been
established or altered. (Ord. 3476 Sec. 6, 2001; Ord. 1472 Sec. 9, 1971.)
1.10.100 ANNEXATION. When additional territory is added to the
City, it may, by act of the City Council, be annexed to contiguous
districts or attached to any other district as the Council may determine
without affecting the right to re-district at the expiration of twelve
months after the last previous division. (Ord. 3476 Sec. 7, 2001; Ord.
1472 Sec. 10, 1971.)
1.10.110 RECALL PETITIONS. Any registered voter shall be
eligible to sign a petition for the recall of any councilman. (Ord. 1472
Sec. 11, 1971.)
1.10.120 FILLING VACANCIES. If a vacancy in the Council occurs
or if a district office is not filled by the election process, the remaining
members of the City Council shall appoint a person to fill such office
until the next regular general municipal election, at which time a person
shall be elected to serve for the remainder of the unexpired term.
Persons appointed to fill district offices shall be the residents of that
district. (Ord. 1472 Sec. 12, 1971.)
1.10.130 VOTING PRECINCTS. Voting precincts within the five
districts shall be established by the City Manager or under his direction
and shall be submitted to the County Commissioners, Franklin County,
for approval. No voting precinct shall be located in more than one
district. (Ord. 1472 Sec. 13, 1971.)