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HomeMy WebLinkAbout2009.03.09 Council Workshop Packet AGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 P.M. March 9,2009 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Tri-Cities Visitor & Convention Bureau. (NO WRITTEN MATERIAL ON AGENDA) Presented by Kim Shugart, Vice President of Operations, Tri-Cities Visitor and Convention Bureau. (b) Softball Complex for Pasco High Class Reunion: 1. Agenda Report from Stan Strebel, Administrative & Community Services Director dated March 4, 2009. 2. Special Event Application. 3. Pasco Municipal Code 9.20.020. 4. Resolution No. 2879. (c) Critical Area Ordinance(MF#CA08-003): 1. Agenda Report from David I. McDonald, City Planner dated March 4, 2009. 2. Proposed Ordinance. 3. Memos to the Planning Commission dated: 8/21/08, 9/18/08, 1/15/09 and 2/19/09. 4. Planning Commission Minutes dated 8/21108, 9/18/08, 1/15/09 and 2/19/09. (Attachments are provided in the Council packets only; copies available for public review in the Planning office, the Pasco Library or on the city's website at http://www.pasco- wa.g_ov/GenerallnforCityCouneiIReports). (d) Neighborhood Stabilization Program: 1. Agenda Report from Angie Pitman,CDBG Administrator dated March 2, 2009. 2. Options for Discussion. 3. Planning Commission Meeting Minutes dated 2119/09. 4. Map of Foreclosed Properties 2008 and 2009. (e) Interlocal Agreement between the Port and City of Pasco: 1. Agenda Report from Rick White, Community & Economic Development Director dated March 4, 2009. 2. Proposed Interlocal Agreement, 3. Vicinity Map. (f) Library Services Survey: 1. Agenda Report from Stan Strebel, Administrative & Community Services Director dated March 4, 2009, 2. Community Survey of Library Services (Council packets only; copy available in Administrative& Community Services office or on the city's website at http://www.pasco- wa.gov/Generallnfo/CityCouncilReports for public review). (g) Disposal of Forfeited Firearms: 1. Agenda Report from Gary Crutchfield, City Manager dated March 4,2009. 2. Memorandum to City Manager from Police Chief dated 3/2/09. (h) Use Tax on Natural Gas: 1. Agenda Report from Jim Chase,Finance Manager dated March 5, 2009. 2. Proposed Ordinance. (i) Ambulance Utility Monthly Rate Increase: 1. Agenda Report from Jim Chase,Finance Manager dated March 6, 2009. 2. Ambulance Service Fund Financial History. Workshop Meeting 2 March 9,2009 (j) Identity Theft Prevention Program: 1. Agenda Report from Jim Chase, Finance Manager dated February 19, 2009. 2. Copy of Memo from Ogden Murphy Wallace,PLLC, Attorneys at Law. 3. Proposed Resolution. 4. Initial Identity Theft Prevention Program. 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (C) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT. REMINDERS: 1. 12:00 p.m., Monday, March 9, Pasco Red Lion — Pasco Chamber of Commerce Membership Lunch. ("Auto Industry and the Economy"presented by Bill McCurley.) 2. 8:00 a.m., Tuesday, March 10, 502 Boeing Street — Franklin County Emergency Management EOC Activation Drill. (MAYOR JOYCE OLSON) 3. 11:00 a.m., Tuesday, March 10, Senior Center— Senior Citizens Advisory Committee Meeting. (COUNCILMEMBER TOM LARSEN,Rep.; BOB HOFFMANN, Alt.) 4. 8:00 a.m., Thursday, March 12, Cousins Restaurant — BFCG Tri-Mats Policy Advisory Committee Meeting. (COUNCILMEMBER BOB HOFFMANN,Rep.; TOM LARSEN, Alt.) 5. 8:00 p.m., Thursday March 12, Transit Facility — Ben-Franklin Transit Board Meeting. (COUNCILMEMBER MATT WATKINS, Rep.; MIKE GARRISON, Alt.) AGENDA REPORT FOR: City Council March 4, 2009 TO: Gary Crutchfi Manager FROM: Stan Strebel, A ministrative and Community Workshop Mtg.: 3/9/09 Services Director Regular Mtg.: 3/16/09 SUBJECT: Request to Use Softball Complex for Pasco High Class Reunion I. REFERENCE(S): 1. Special Event Application 2. Pasco Municipal Code 9.20.020 3. Resolution No. 2879 II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 3/9: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) Representatives of the 2009 Pasco High All Class Reunion have requested a Special Events Permit to hold a portion of the reunion (Friday, August 7, 2009) at the Road 68 Softball Complex. B) In addition to food and display booths the event includes live bands and dancing and a proposed beer garden. From 800—2,000 participants are expected. C) PMC 9.20.020 prohibits the possession or consumption of liquor in City parks or recreation facilities without a special permit. Resolution 2879 authorizes staff to issue permits that allow liquor use for public events only at three specific locations: Peanuts Park, Farmer's Market and Wade Park (Water Follies only). While it could be argued that this event is not a public event, staff has been hesitant to issue permits at recreational facilities due to the City's longstanding practice of not issuing such permits. D) According to class reunion representatives, they have had difficulty locating the event at more traditional convention venues. Representatives have been invited to the meeting to discuss their event and answer questions. E) There are no conflicting events at the complex for the proposed date; softball leagues usually wind down by the end of July. F) In the event that Council decides to approve the event at the softball complex, staff suggests a fee of $1,000 in addition to the typical supervision liquor insurance and deposit requirements, owing to the administration and logistics processing required for the event. 4(b) t 13g�� Cary of Pasco acy aerlcs offle 525 N r Ave PO Box 293 Pa=WA 99301 Ph:509-545-3402 Fax:509-543-5727 www.pasco-wa.gov Special Event Application Applicant Information: Applicant/Organization Name if8-20_0 �6 c S0,601 m ❑ Corporation ❑ LLC ❑ Partnership ❑ Sole-Proprietor [Other UBI# FEIN # or SS# Address P©. 3cT( EE City Pig 6O St WA,_ Zip Mailing Address 10�7 t City Rt��, St tL8 Zip Phan ax Email Contact Person tcl l Mailing Address Phone ax Other Contact Person ;:10 fvle 14-N Mailing Address Phon _ Fax Emai Event Information: ,�ev�`>n 'lli°y`''S Type of Event [( QSS 92 tC �06 �, V �►�tc� Name of Performers Describe all activities that will take place at Event Utz Ge r� s �' 0.55 i C. e� ✓t j -f�'r� c! Location of Event JC��7A�� Fie�r�S Address te5W ru...vN �d �rxSc a Date of Event 4 2�d`� i Hours of Operation Kc'T' +" f�PrIo " _— p n ts`h Set-up DatejTime_ o Dismantling Date/Time �� hn- lZ hrvt lea--P Contact Person During Event(ti d_kl- e- Phone During Even Estimated Number of Attendees �O Age of Attendees ± :� Will you have Vendors? ® Yes No Est# of Vendors _ Will you use amplification equipment? ® Yes No Did you receive Noise Ordinance? Yes ❑ No Will you have a sign? Yes ❑ No Alcohol Sales? ] Yes ❑ No Will you be charging Admission to this Event? Yes Q No If yes, how much?��S70_. '_ Special Events Application 315 4/2008 ......... ... .. City of Pasco City Clerk 5 Office 525 N 3'"Ave PO Box 293 Pasco WA 99301 Ph; 509-545-3402 Fax.509-543-5727 www.pasoo-wa.gov Person/Entity liable for collection and payment of Admission Tax ?R5 Ali C a:5'5 jFev'A 10 sn Mailing Address PO City PAS{-� St Zip Phon Fax Email qO �u T Person/Entity liable for payment of Retail Sates Tax_ P45 AU CJDLS5 Re-culcorl Mailing Address R)-31n City VSCfa St � - Zip 3b) Phone Fax Email O£Q?-5e0+ U #e yS,�LfiA00.C�'I Attachments. ,�• Copy of your Picture ID Ve Copy of any Brochures, Flyers, or Mailings advertising this event v• Map of your event location (streets, parking, buildings, stages etc) • Written consent of Owner of Property i • Copy of your Security Contract • Map of parade route • Preliminary Vendor list (Final List due 3 days before Event) Include Name, Ad dress. 1 Phone,, and Goodsl$ervices offer. i i INSURANCE—The City does not maintain insurance that will respond to claims against the applicant arising out s of the use of facilities by the applicant,its members, or those attending the event. Depending on the type of event you are planning,and the activity and risk level of your group, you may be required to obtain bodily Injury and property damages liability insurance In accordance with city policy, name the City as an additional Insured on the policy,and be.fesponsible for obtaining said insurance.After reviewing this application, the City will determine whether you must obtain liability Insurance. AGREEMENT—Deperiding on the type of event planned,you may be required to defend, Indemnify and hold harmless The City, its agents,employees and officials, while acting within the scope of their duties, from all causes of action,demands and claims, including the cost of their defense,arising in favor of the organization, the organization's employees or third parties on account of personal injuries, bodily injuries, death, or damage to property arising out of the acts of omissions of the organization, Its employees or representatives, concessionaires of the event or any other person or entity,except for liability caused due to the sole negligence of the City. After reviewing this application,the City will determine whether you must agree to indemnify the City and its agents. Signature Date r1_ AJ t CLASS R2Gt it Organization — Title special Events Application 4/5 4/2008 4. w ke..�.�.y��°'�3f�:Sf'�. •��� r��, 9 ���� F y yg 2 � 9k 5 : Y,':' ....i.. _,. i':-•t'!:f',:'.°.'�' �, a4. k.5f.. �9uisY.:c'::M::`.A.•`.� -..1- � , _ 1 f j a i .w r • gym.. _ r.! ��.,. .• sa...' }.:. t�i'::.�'�� is' _ �:t.r "7%�� �7� _ F 'jam .••.:..,rrxn.a.t...,-.... S'• of pppo ISTAGE DANC ♦ i� : A• . rY 4 � ' FOOD AREA K: E :e. AA. i i i IW CHAPTER 9.20 INTOXICATING LIQUOR Sections: 9.20.010 STATE ALCOHOLIC BEVERAGE CONTROL LAW ADOPTED................ 24 9.20.020 CONSUMPTION WITHIN PARK AND RECREATION FACILITIES PROHIBITED WITHOUT PERMIT.................................................................. 24 9.20.010 STATE ALCOHOLIC BEVERAGE CONTROL LAW ADOPTED - PENALTY FOR VIOLATIONS. Title 66 RCW, relating to alcoholic beverage control as amended, shall to the extent that its provisions are applicable to the police power of the City of Pasco, be the law of the City of Pasco. Every person who violates any provisions of Title 66 RCW and by reference thereof, of this title, shall be guilty of a violation of this chapter, and the penalties for such violations as set forth in Title 66 RCW, including but not limited to RCW 66.44.180, shall be the penalties for a violation of this chapter, not withstanding any other provision of Pasco Municipal Code. 9.20.020 CONSUMPTION WITHIN PARK AND RECREATION FACILITIES PROHIBITED WITHOUT PERMIT. A) It is unlawful to open a package containing liquor, or to possess or display an open container of liquor or to consume liquor in any City park or recreation buildings, facility or structures within the City without a current rental permit issued by the City. A rental permit may be issued upon application for such rental permit from the Administrative & Community Services Director of the City of Pasco or his designee. Such rental permit may be issued on the following conditions: (1)The applicant must produce evidence that he has a banquet permit from the Washington State Liquor Control Board; (2)Payment of rent in an amount fifty percent higher than the regular rental fee; (3)The applicant deposits a sum determined by the Administrative & Community Services Director to be sufficient to insure proper performance of cleanup by the applicant subsequent to the event for which the banquet and rental permit is issued and for payment of damages; (4)The applicant furnishes to the City evidence that he has in full force and effect a liability insurance policy that includes liquor liability, in such amounts and coverages as prescribed by the City's insurer covering any bodily injury or property damage arising out of or in any way connected with the use of the city facility by the applicant. A surety bond approved by the City in the same amounts may substitute for insurance; (5)The applicant must affirm in writing that the attendance at the function for which the rental permit is issued is not pursuant to a general invitation to the public, but pursuant to invitations to either specifically named individuals or to actual members of the applicant's organization; provided that the City Council may waive this requirement by resolution upon a showing by the applicant that special circumstances exist which would merit such waiver, and that adequate PMC Title 9 8/4/2008 24 provisions have been made to accommodate the anticipated number of persons who attend the function for which the rental permit is issued; (6)The applicant agrees that he or she will save the City of Pasco harmless from all losses or damage occasioned to him or her or to any third person or party by reason of any act or omissions of the applicant or anyone using the premises pursuant to the rental permit. He or she shall, after reasonable notice thereof, pay the expense of any suit, which may be commenced against the City of Pasco by any third person alleging injury or loss by reason of such acts; (7)The applicant shall furnish written confirmation from the Chief of Police of the City of Pasco that adequate provision has been made by the applicant for police, security, and traffic control, considering the type of activity purposed by the applicant; (8)The applicant shall comply with all applicable fire codes and regulations. (Ord. 3757 Sec. 1, 2006; Ord. 3495 Sec. 1, 2001; Ord. 2333 Sec. 1, 1982.) B) Any person violating this Section shall be guilty of a Class 3 civil infraction and subject to the penalties imposed thereon by law. (Ord. 3757 Sec. 1, 2006). PMC Title 9 8/4/2008 25 RESOLUTION NO. 2 $7 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, DESIGNATING ACCEPTABLE LOCATIONS FOR THE POSSESSION, DISPLAY OR CONSUMPTION OF LIQUOR SUBJECT TO CERTAIN REQUIREMENTS. WHEREAS, Pasco Municipal Code Section 9.20.020 provides that the City Council may, by Resolution, authorize park and recreation and other enclosed or restricted areas for the lawful possession,display or consumption of liquor subject to the requirements of said section; and WHEREAS, the City Council desires to designate acceptable locations for the possession, display or consumption of liquor;NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: 1. The following locations are designated as acceptable, subject to the provisions of PMC 9.20.020, for the possession, display or consumption of liquor: A. Peanuts Park B. Farmer's Market C. Wade Park(for the annual Water Follies event only) 2. The Director of Administrative and Community Services is authorized to issue permits for liquor use at the locations listed in Section 1 of this resolution pursuant to the provisions of PMC 9.20.020 and to waive the "specific individual" requirements of said section(e). 3. Applications for liquor use in Peanuts Park or the Farmer's Market shall be subject to the recommendation of the Pasco Downtown Development Association. 4. Any applicant who is aggrieved by the decision of the Director of Administrative and Community Services made pursuant to this resolution or PMC 9.20.020 may appeal to the City Council. 5. City of Pasco Resolution No. 2606 is hereby repealed. PASSED by the City Council of the City of Pasco this 20th day of June2005. iic -el L.Ca ison Mayor ATTEST: APPROVED AS TO FORM: r Sandy L. IUNdx6rthy eland B. Kerr Deputy City Cleric City Attorney AGENDA REPORT FOR: City Council March 4, 2009 TO: Gary Crutchfield, anager Workshop Mtg.: 3/9/09 Rick White, JvA Regular Mtg.: 3/16/09 Community&Eco omic Development Director FROM: David I. McDonald, City Planner, SUBJECT: Critical Area Ordinance(MF#CA08-003) I. REFERENCE(S): * (Note) A. Proposed Ordinance B. Memos to the Planning Commission Dated: 8/21/08, 9/18/08, 1/15/09 &2/19/09 C. Planning Commission Minutes Dated: 8/21/08, 9118/08, 1/15/09& 2/19/09 * Note: Attachments are provided in the Council Packets only. Copies of attachments are available for public review in the Planning Office, the Pasco Library or on the City's web site at www.pasco-wa.Qov. II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 3/9: DISCUSSION: 3/16: Conduct Public Hearing: MOTION: I move to adopt Ordinance No. an Ordinance repealing PMC Chapter 23.11 and enacting a new PMC Title 28 dealing with critical areas and, further, authorize publication by summary only. III. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. In the early 1990's the Growth Management Act (GMA) required the city to adopt regulations for the protection of critical or sensitive environmental areas. Subsequent amendments to the GMA mandated cities and counties to update critical area ordinances using the best available science. B. As required by the GMA a draft critical area ordinance was prepared for Planning Commission review in 2008. The Planning Commission held two workshops and two public hearings on a proposed critical area ordinance. Planning Commission workshops were held on August 21, 2008 and January 15, 2009. The public hearings were held on September 18, 2008 and February 19, 2009. C. Following the September 2008 hearing the draft ordinance was forwarded to.the State Department of Community Trade and Economic Development (CTED) for the required 60-day review by state agencies. CTED and the Department of Ecology made several suggestions for changes and corrections to the draft ordinance. The Planning Commission held its second hearing on the final draft during its February 19,2009 meeting. 4(c) V. DISCUSSION: Critical areas are defined by the GMA as wetlands, aquifer recharge areas with critical recharging effect on aquifers used for potable water, frequently flooded areas, fish and wildlife habitat conservation areas and geological hazard areas. In an ecological or natural sense, these lands provide beneficial values and functions by restoring ground water levels (as in aquifer recharge), serve as flood protection zones (wetlands) and provide critical food production areas for sustaining fish&wildlife(habitat). Geologically hazardous areas are deemed critical in the sense that they present potential hazards to life and property. These areas include lands that are susceptible to erosion, landslides, earthquakes and other geological hazards. The purpose of the critical area ordinance is to conserve and protect environmentally sensitive areas and to protect the public from losses due to seismic events and other geologic hazards. The adoption of a critical area ordinance by the city is not optional. It is a mandated requirement of the GMA. Because the critical area ordinances are part of the GMA requirements the City Attorney advises it will be necessary to hold a hearing prior to the adoption of the proposed code language. A hearing has been scheduled for March 1 b,2009. AGENDA REPORT FOR: City Council March 2, 2009 TO: Gary Crutchfield, ager Workshop Mtg.: 03/09/09 Rick White, Z1.11 4 Community& Eco omic Development Director FROM: Angie Pitman, CDBG Admoi=Nattko SUBJECT: Neiahborhood Stabilization Program SP I. REFERENCE(S): 1. Options for Discussion 2. Planning Commission Meeting Minutes dated February 19, 2009 3. Map of Foreclosed Properties 2008 and 2009 H. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 3/09: Discussion III. FISCAL IMPACT: $402,141 in NSP Grant Funds IV. HISTORY AND FACTS BRIEF: A) Washington State Community Trade and Economic Development (CTED) Department has been allocated $28,159,293 to establish and implement the Neighborhood Stabilization Program (NSP), which helps communities minimize the effects of foreclosures and abandonment of homes. The City of Pasco will receive $402,141 of the allocated NSP funds for neighborhood stabilization. The City accepted the NSP grant opportunity by letter on December 30, 2008. B) In response to a preliminary staff survey, the City estimated that funds would be utilized for the eligible activities in Reference I Option A. An Action Plan is required to be submitted to CTED by April 1, 2009 for use of the funds. C) An inventory of properties city-wide that have been abandoned or foreclosed through January 2009 indicate that there are 170 properties, 85 properties (50%) in low-income Census Tracts 201, 202, 203 and 204, and 85 properties (50%) in Census Tracts 205 and 206. A map of these foreclosed properties is attached. D) At the Planning Commission meeting of February 19, 2009 the work plan in Reference I Option A was reviewed and discussed prior to forwarding to City Council for review and approval. V. DISCUSSION: A) The City has established the Community Housing Improvement Program (CHIP) for the purpose of furthering affordable housing opportunities in Pasco. CHIP gives priority to the Longfellow and Museum Neighborhoods in Census Tract 202 and is in compliance with Housing and Urban Development's HOME Investment Partnerships regulations (24 CFR 57092). B) NSP Guidelines from the State, cite HOME Investment Partnership regulations for the Neighborhood Stabilization Program plan, with an exception allowing low- middle income beneficiaries up to 120% of area median income (AMI). C) Council affirmation of final activities and funding in the appropriate combination is needed for the Action Plan to be submitted to CTED by the April 1, 2009 deadline. 4(d) D) Program income from the purchase and sale of eligible properties is subject to program income guidelines of the State, it may be used for a similar project. Twenty-five percent (25%) of allocated NSP funds including program income must be used to benefit those at 50% or below AML E) Reference 1, Options for Discussion, contains two combinations of eligible activities for use of funds. Option A is the original NSP Work Plan Summary of proposed activities submitted to the CTED in a pre-award survey. F) Option B is the revised work plan targeting down payment assistance. Since demolition funds are currently available through the nuisance abatement fund, and since Option B directs the most funding to alleviating foreclosure impact to neighborhoods in the quickest manner, staff recommends that the action plan to CTED reflect Option B and administered on a city-wide basis. OPTIONS FOR DISCUSSION Traditional Style of Assistance Patterned after HOME-Funded Projects (Option A) Targets primarily low-moderate income neighborhoods. Homebuyers in these neighborhoods may require additional assistance to make loans affordable. Direct subsidy is usually in the form of a silent second mortgage that is payable when the property transfers ownership or when the home ceases to be the homeowner's principle residence. Receipt of program income from the silent second mortgage is not realized until the property transfers ownership. Program income not realized until after 2013 will have to be returned to the state unless the city is allowed continued use of the funds through special agreement with the state. Homebuyer Down Payment Assistance (Option B) Allows for down payment assistance city-wide. Beneficiaries up to 120% of AMI may be included. Down payment assistance is a direct subsidy and is usually in the form of a silent second mortgage that is payable when the property transfers ownership or when the home ceases to be the homeowner's principle residence. Receipt of program income from the silent second mortgage is not realized until the property transfers ownership. Program income not realized until after 2013 will have to be returned to the state unless the city is allowed continued use of the funds through special agreement with the state. Select Appropriate Activity Funding Levels: Option A: NSP Work Plan Summary Estimated Estimated Housing Individuals Activity Funds % Units Served Homeowner or Rental Purchase& Rehab $194,000 49% 2 10 Targeted at below 50% AMl $106,000 25% 1 5 Demolish blighted structures $43,000 11% 1 80 Down Payment Assistance $40,000 10% 5 15 Program Administration $19,141 5% TOTALS $402,141 100% 9 110 Option B: Revised Work Plan Summary Estimated Estimated Housing Individuals Activity Funds % Units Served First Time Homebuyers $277,000 70% 27 81 Assistance Targeted at below 50%AMI $106,000 25% 10 30 Program Administration $19,141 5% TOTALS $402,141 100% 37 111 REGULAR MEETING February 19, 2009 PLANNING COMMISSION MEETING WORKSHOP: A. Block Grant Neighborhood Stabilization Plan {City of Pasco) (MF# CDBG 09-0011 Chairman Samuel read the master file number and asked for comments from staff. Staff stated this particular block grant fund is part of the Neighborhood Stabilization Program which was authorized by Title 3 of the Housing & Economic Recovery Act of 2008 otherwise known as HERA. This particular block of funds is different from the CDBG entitlement funds. This was allocated to the State of Washington as the grantee and we are a sub recipient. All the citizens' participation requirements have been met by the State of Washington and they have submitted an annual action plan and we are as a sub recipient going to submit an annual action plan to them. Pasco has been identified by CTED as an area of greatest need and we are expecting to receive $402,141 for neighborhood stabilization projects. The purpose of HERA is to quickly address the needs and neighborhoods having the greatest impact from home foreclosure and subprime mortgage loans. To be eligible to use these funds, properties have to be abandoned which is vacant for 90 days and have delinquent taxes or have been foreclosed upon. Eligible activities are defined by CDBG regulations in 24 CFR 570.201. We must use 25% of the allocation to benefit persons who are at or below 50% of the area median income and it may be used to assist people who are at 120% of AMI. Activity A is for establishing financing mechanisms for purchase and redevelopment of foreclosed on homes and residential properties and those mechanisms can be things such as loan loss reserve, soft seconds. and shared equity loans for low and moderate home buyers, or down payment assistance. Foreclosure is required to be able to use funds for that and can be contributed towards 25% of the NSP funds that benefit those at or below the 50% AMI. Activity B is for purchase and rehabilitation of homes and residential properties in order to sell or rent or redevelop those homes and projects for other people to buy. Those eligible activities under 24 CFR 570.201 include acquisition, purchasing the property, disposing the property, relocation costs, if the homes are occupied, and ownership assistance which would be the down home payment assistance. That is also an activity that requires foreclosure to be eligible. Properties that are bought and rehabilitated cannot be sold for anything more than what we put into them. We cannot earn a profit on these sales. -1-. Activity C which would allow establishment of land banks by local government is not allowed under the Washington plan. Activity D demolition of blighted structures. In order for a structure to be eligible, it has to be determined to be a blighted structure by the local government and it has to be a clear danger beyond repair. Activity E is to redevelop demolished or vacant properties with new construction. This is not allowable under CDBG entitlement. Under NSP funds, you would be able to redevelop on vacant properties. Foreclosure is not required. They can be redeveloped as residential owner or renter occupied or non-residential which includes parks, commercial or mixed uses and these projects must meet the national objectives that apply for that activity. If it is a commercial activity, it would need to create new jobs, if it is parks and public facilities then it needs to be an area benefit, shelter housing would need to meet limited clientele requirements. CTED also encourages recipients of the funding to address housing needs of the homeless and those at risk of homelessness and also to address the housing needs of special needs population within the City and to support the local 10- year plan to end homelessness. The City of Pasco actively participates in these types of activities by being a member of the Benton Franklin Continuum of Care group called HOMEBASE. Where we meet and proactively try to find solutions to some of these problems and we are also working together with them in preparation of the 10-year plan. In response to these requests by the State, we have put out an RFP on January 6th to 11 of the organizations that are on that listing and they also forwarded the RFP to anyone interested in their organization with the hope that we would be able to bring forward projects for consideration for this plan. We also presented this to the BFCAC meeting on January 14, 2009 and issued a letter of intent to participate to the State on January 15, 2009. By the January 23, 2009 deadline, we received 1 proposal from Property Research Specialists, LLC and received 2 other requests for other information. Property Research Specialists, LLC applied for funding $400,000 to $100,000 which breaks down to $1,000 per home that would save 100 homes that are being foreclosed upon. In reviewing the proposal for eligibility, feasibility and whether it met the national objectives as well as the priority goals and objectives of the consolidated plan. It met all the criteria with the exception for eligibility for NSP funding. This particular block of funding is not allowable for foreclosure prevention or mitigation. Another source of funds that might be possible for the NSP or foreclosure mitigation would be CDBG entitlement funds, this project would be classified as a public service which by our own policy we do not fund. This project is ineligible. -2- It is estimated 49% of the funds or $194,000 would be used to purchase and rehab homes for rental or homeowner properties, 25% $106,000 would be targeted to those individuals that are at 50% or below AMI. We have set aside 11% $43,000 for demolition of blighted structures. If that project does not appear, the funds can be reallocated into another activity. An estimated 10%, or $40,000 for financing mechanisms in the form of a down payment assistance program, and the 5% that was allowable would be used for administrative services. The next steps after approval would be to forward to the City Council for a workshop on March 16, 2009. It would then be open for public review for a 15 day period. After that 15 day period we would be able to submit to CTED as a final approved plan. Commissioner Schouviller questioned the application process for the distressed buyer. Staff stated this funding is not allowable for that, the City would like to partner with local organizations to provide that type of counseling or try to get into a comprehensive housing counseling program. Some of the requirements for purchasing a home require that the family go through S hours of first time homebuyers counseling which is currently provided by Consumer Credit Counseling as a HUD approved counselor. This funding is not allowed for counseling; however it is allowable for purchase of homes after they have been foreclosed upon. Commissioner Schouviller questioned who would make the decision on which properties are purchased. Staff stated after approval of the plan, a program would need to be set up to determine criteria for what houses to purchase. This program would be run by the City and the program administrator. Staff clarified this program would be similar to HOME, where homes are purchased and rehabilitated. The only difference between the 2 programs is that homes eligible for this program need to be foreclosed upon and/or vacant. Commissioner Little questioned if the houses would be privately refinanced. Staff stated the homes would be purchased at a discount, rehabilitate with a community partners such as Habitat for Humanity. Commissioner Little further questioned once they receive private money, does the money go back into the pool and re-circulate the money. Staff stated the program income goes back into the pool and will go out and do it again. The money would be allocated in the same percentages that were established earlier to make sure we maintain the minimum of 25% that goes to assist those that are 50% or below. -3- Commissioner Little questioned the number of homes that would be effected. Staff estimated 3 units which would serve approximately 15+ individuals. Commissioner Rose questioned if there were any other projects to reference. Staff stated this is a new program in the State of Washington. It is similar to the HOME program; however, payment is not expected right away. Chairman Samuel questioned how they determined the breakdown of the money. Staff stated they have a great need to purchase and rehabilitate vs. demolishing blighted structures. Money can be reallocated to best fit the needs of the community. Commissioner Schouviller moved, seconded by Commissioner Anderson that the Neighborhood Stabilization Action Plan is forwarded to the City Council for review and adoption. Karma Simmons and Tony Brown presented information on their program Property Research Specialists, LLC. -4- 1 f 3 � �yt��� ':i�~ ::ice.._i:_� •. -J'/ ....... ... jj 1 _� - •+� �. ice- •- r�--1 s I" OF 1 ; yam` E N N NI N L) ' O J }J N m N LL ti U U AGENDA REPORT FOR: City Council March 4,2009 TO: Gary Crutchfield, nager Workshop Mtg.:03/09/09 11�1 6 Regular Mtg.: 03/16/09 FROM: Rick White, Community&Economic Development Director SUBJECT: Interlocal Agreement between the Port and City of Pasco 1. REFERENCE(S): 1. Proposed Interlocal Agreement 2. Vicinity Map II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 03/02: DISCUSSION 03/09: MOTION: I move to approve the Interlocal Agreement with the Port of Pasco for a joint planning effort east of the Cable Bridge and, further, authorize the City Manager to sign the Agreement. Ill. FISCAL IMPACT: Cost sharing with the Port not to exceed$15,000 IV. HISTORY AND FACTS BRIEF: A. City Council approved a Development Agreement for the Port of Pasco in January of 2009. The Development Agreement affects lands within the Big Pasco Industrial Center and sets standards for permitted uses, design, public infrastructure installation, public access to the Columbia shoreline and phasing. B. The City leases land from the Corps of Engineers immediately west of the BPIC (Boat Basin), and there are also a number of private residences north of the Boat Basin. The Port owns land immediately west of these lands(Tanks Farm Remediation Area). C. The residential properties north of the Boat Basin form an isolated residential district within a predominantly industrial area. The Tank Farm properties are undergoing environmental clean-up for petroleum removal. V. DISCUSSION: A. Taken together,the lands described above form the entire contiguous rivershore area west of Sacagawea Park and east of the Cable Bridge: With the Port's Master Plan and approved Development Agreement, there is an opportunity to begin a planning process for a coordinated effort at land use,infrastructure and amenity planning for the rivershore area east of the Cable Bridge. B. The planning process is expected to include an inventory of the physical conditions of the planning area and a public participation process. It is also expected to include recommendations for preferred land use, which will help identify financing options for public infrastructure. C. The proposed Interlocal Agreement provides framework for a joint planning effort and assigns a minority share of the costs (not to exceed $15,000)to the City, and the City to assume the lead in administering the planning process. The Port is responsible for the remainder of the costs (not to exceed $35,000). The final product is. expected to be incorporated into the City's Comprehensive Plan. 4(e) INTERLOCAL COOPERATIVE PROJECT AGREEMENT BETWEEN THE PORT OF PASCO AND THE CITY OF PASCO BY THIS INTERLOCAL COOPERATIVE AGREEMENT, hereinafter referred to as "Interlocal Agreement," entered into this 2nd day of February, 2009, the City of Pasco, Washington, a municipal corporation, hereinafter referred to as the "City", and the Port of Pasco, Washington, a municipal corporation, hereinafter referred to as the "Port", enter into the following agreement: WHEREAS, this Interlocal Agreement concerns land use planning and related issues for property located east of the Cable Bridge and adjacent to the Columbia River shoreline, in the City, as shown on Exhibit "A". Portions of this property are owned and controlled by the Port ("Tank Farm"), other portions are owned and controlled by the City and private owners ("Boat Basin"); and WHEREAS, the Port has applied for and received a City shoreline substantial development permit for a proposed Master Plan (SMP 08-001) for the property as shown in Exhibit "B". The approved Master Plan includes a mix of land uses and is divided into four general areas: (1) the Riverfront Business Park; (2) the Expansion Area; (3) the Retention Area; and (4) the Rail/Barge Terminal Area, NOW, THEREFORE, the parties agree as follows: Section 1. The Port and the City desire to prepare a subarea plan that will include the Boat Basin public and private properties and the Tank Farm area. The subarea planning process is intended to be incorporated into the City's Comprehensive Plan. It is also intended that the subarea plan will functionally incorporate and coordinate elements of the existing Port Master Plan (SMP 08- 001) with the Tank Farm and Boat Basin properties. The Port and the City will use their best efforts to complete the subarea planning process in a manner acceptable to both parties within two (2) years from the date of this Interlocal Agreement. Section 2. The subarea planning process will include (at a minimum): a statement of the desired results of the planning process, an inventory of existing physical conditions of the planning area, a public participation component, identification of preferred land use, a transportation (including bicycle and pedestrian facilities) and infrastructure element and a capital facility element that will identify preferred financing options. Additional components (design guidelines, development standards, regulatory and environmental constraints...) are encouraged. INTERLOCAL COOPERATIVE PROJECT AGREEMENT- 1 Section 3. The Port and the City acknowledge that the planning process will involve the assistance of a planning consultant, and hereby agree to share the costs. The City shall contract with the consultant, and will pay 30% of such costs (not to exceed $15,000.00 total). The Port will pay the remainder, provided the entire cost shall not exceed $50,000.00. The Port shall reimburse the City for its respective share of the cost within thirty (30) days of receipt of an invoice. Section 4. The City and the Port may terminate this Interlocal Agreement by mutual agreement. In the event the Interlocal Agreement is terminated, both the City and the Port will receive an electronic and hard copy of all work conducted up to the termination date. Section 5. This Interlocal Agreement shall be construed and enforced in accordance with, and the validity and performance shall be governed by the laws of the State of Washington. Venue of any suit between the parties arising out of this Interlocal Agreement shall be the Superior Court for the County of Franklin, State of Washington. Section 6. This Interlocal Agreement may be changed, modified, or amended only upon written agreement executed by the parties. Section 7. It is not intended that a separate legal entity shall be established to conduct the cooperative undertaking nor is the acquiring, or holding, or disposing of real or personal property anticipated. The City Manager and Port Executive Director are designated as the Administrator of the project. Section 8. This Interlocal Agreement contains all the terms and conditions agreed upon by the parties. All items incorporated by reference are attached. No other understandings, verbal or otherwise, in regard to the subject matter of this Interlocal Agreement, shall be deemed to exist or to bind any of the parties. Section 9. This Interlocal Agreement shall be filed or placed on the City's and the Port's web sites as provided by RCW 39.34. CITY OF PASCO PORT OF PASCO By: By: Gary Crutchfield, City Manager James E. Toomey, Executive Director INTERLOCAL COOPERATIVE PROJECT AGREEMENT-2 I. Ap S .,• M!Aw�, r e g �#• J„y , .fir MR ll b T�i4. r5� l s"^1e-•, ��I t."�,i''i^ifi'1„T Li`: ,r`3�. _ �r. � �Z, t� �i�! t S U ty. .dt`; '`r Sri •D k i e '1�r°,;si�+'" ,fir .V'n •'' Y 14�b {'}', � !�''� .. •�; �jj s� ..;r ��, . ` @ *� /fit` M �¢�:t, i II� 4:a,.r 9���,• tis+ f.��.K: .w - r � ,,,., y�1^;�`�-i.t;�'}i"'Et.'v��it:4-�* i AGENDA REPORT FOR: City Council March 4, 2009 TO: Gary Crutchfie Manager FROM: Stan Strebel, A inist i e Community Workshop Mtg.: 3/9109 Services Director SUBJECT: Library Services Survey I. REFERENCE(S): 1. Community Survey of Library Services. Current Usage and Future Needs. prepared by Gilmore Research Group (Council packets only; copy available in Administrative and Community Services office or on the city's website at www.pasco-wa.gov for public review.) II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 319: Presentation. Staff will review the results of the survey. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) In December, Council authorized a contract with the Gilmore Research Group to conduct a survey of library usage and preferences to further inform the Council prior to discussion regarding the library services agreement with Mid-Columbia Library District which expires at the end of next year. B) The survey has been completed and staff will present a summary of the results. 4(f) Community Survey of Library Services: Current Usage and Future Needs Prepared by Gilmore Research Group February 9, 2009 G o RESEARCH x Page 2 Introduction • Purpose Understand current usage patterns of library services within and outside of the City of Pasco Determine resident needs and preferences for expanded library services in Pasco Explore residents' willingness to support a new facility and expanded services Assess preferences for location of a proposed new facility • Method 400 telephone interviews conducted with Pasco residents between January 12, 2009 and January 25, 2009, averaging 9.2 minutes in length Sample for the survey obtained from the City Utilities database Analysis by region of residency - Central, East, West (includes Plateau and Riverview) Margin of error: ± 4.9 percentage points at 95% confidence level (assumes a response proportion of 50%; for response proportions lesser or greater than 50%, margin of error decreases) r��;r Page 3 Summary of Results • Frequency of Using Library Services: 41 % of respondents said they use the library frequently (at least once a month or more often) and 43% said they use it rarely (once a year or never). • Usual Time of Day for Use: More than half (56%) visit between 3 PM and closing, including 37% who go to the library between 3 and 6 PM. 24% said they use the library between noon and 3 PM. • Time of Week to Visit: Nearly 3 out of 5 respondents (58%) said they typically use library facilities on weekdays, and 24% use it on weekends. • Location Most Often Visited: The majority of residents (68%) said they most often use the Pasco Branch for library services. 15% said they visit one of the Kennewick branches and 10% said the Richland City Library. r��;r Page 4 Summary of Results (Continued ) • Reasons for Using (Any) Library: Eight out of ten (81 %) said they use the library to check out books and other print materials. 28% said they check out electronic media and 26% said they visit the library to use the reference materials. • Reasons for Using Libraries Not Located in Pasco: 48% of respondents who visit libraries outside of Pasco said they go because the locations are more convenient. This reason emerged as the number one explanation no matter where respondents said they lived. 25% said they visit other libraries because they offer a larger selection of materials. • Importance of Factors in a Library: "Selection of Materials" surfaced as the most important factor in determining use of a library. 78% of respondents rated this an 8 to 10 (of "greatest importance"). "Access to computers" was the least important factor. 33% rated this an 8 to 10, and 42% gave it a rating of 1 to 3 (of "least importance"). Page 5 Summary of Results (Continued ) • Importance of Other Factors in Determining Use: About one in five respondents (19%), said there were other factors of importance in determining their use of a library. These included "staff and customer service" (named by 27% of those who said there were other factors) and "safety, cleanliness" (named by 22%). • Importance of Having Additional Services in a Library: 65% of respondents gave a rating of 8 to 10 to having "an increased number of books." 45% gave a similar top rating to having "an increased number of other materials" such as electronic media and magazines. Having an "increased number of computers" and "more in-library programs" was rated of "greatest importance" by 39% of respondents. About one third (32%) gave an 8 to 10 rating (of "greatest importance") to having more materials in Spanish. r��;r Page 6 Summary of Results (Continued ) ■ Importance of Having Other Additional Services: 13% of respondents (n=52) said there were other additional services that were of importance that were not mentioned. These included "new branch, more convenient location" (mentioned by 23% of those who said there were other factors), "Bookmobile" (15%) and "expanded hours" (13%). ■ Preferred Location for Increased Services: 51 % said they would prefer to have increased services offered at the existing Pasco Library. 43% said they would like them offered at an additional branch. Those who live in Central Pasco (72%) and East Pasco (75%) said they would prefer having them offered at the current library, while West Pasco residents were more likely to want them at an additional branch (54%). ■ 1 St, 2nd & 3rd Choices for Location of Additional Services: Respondents who said they wished to have services at some other location than the current library more often named the Plateau area as their top choice (49%). The Riverview area gathered a 29% top share. r��;r Page 7 Summary of Results (Continued ) • Support for Type of Facility to Offer Additional Services: Results found respondents evenly divided in their support for a new library branch (paid for by a one-time property tax increase), and a satellite facility to be opened without a property tax. 82% said they would be likely to support a new facility (including 42% "very likely") and 82% said they would be likely to support a satellite facility (including 44% "very likely"). 16% said they would be unlikely to support a new facility and 17% said they would be unlikely to support a satellite facility. • Overall Preference for Type of Facility: Respondents were significantly more likely to prefer having a full service facility even if it requires a small tax to pay for it, than a limited service facility requiring no tax (55% v. 43%). r��;r Page 8 Conclusions and Recommendations • Results of this survey found a large majority of Pasco residents in favor of having an additional library facility, including those residents who use the library only rarely. Whether the decision is made to build a new branch location, or to open a satellite facility, keep in mind that more than 80% said they would be likely to support either option. Consider offering a levy on the next ballot to determine whether the significant majority who indicated their preference for having a new full service library, even though it would require a new tax, will be representative of the voting public. • By a razor-thin margin (51 %), respondents said they would like to have increased services offered at the existing Pasco Library. Note that primary advocates for this alternative can be found among those who live in Central and East Pasco and are closer to this facility. Heed the residents of West Pasco, who are more likely to favor having increased services at an additional branch, who are more distant from the existing Pasco Library and who are more likely to use the branches in neighboring Kennewick and Richland. 4!5� Page 9 Conclusions and Recommendations (continued) • Assure an increase in the size of the collections as a priority in the new contract with the Mid-Columbia Library District based on survey findings that indicate City residents place high value on print materials, including reference resources, as the primary service offered in a library: Checking out books and other print materials surfaced as the number one reason for using a library. Having a good selection of materials was the most important factor in determining use of a library. An increased number of books was the most important expanded service desired in a library. • We recommend that decision-makers evaluate selection and service levels currently available at the existing library with an intention to increase diminished resources — particularly in the area of print materials, if possible. • If the decision is made to build a new facility, aim for a location in the Plateau Area of West Pasco, and one with the most convenient access from 1-182. 0!5� Page 10 Demographic Information Area of Residence Page 11 In which part of Pasco do you ive? ■ Most respondents said they live in West Pasco, more often in Plateau the Plateau region (37%) than 37% in Riverview (29%). ■ Respondents interviewed in Riverview Spanish were more likely than 29% English-language respondents to say they are residents of East Central Pasco (48% v. 16%) 8% and East Pasco (19% v. 6%). DK 5% ■ Respondents interviewed in Central 21% English were more likely to say they reside in West Pasco (72% v. 29% Spanish respondents). S1/S1A: The City of Pasco has several different areas and we would like to get a good representation of all of them. In which part of Pasco do you live? Base: (n=400) 4!5� Profile of Respondents Page 12 • Gender - 42% male, 58% female • Type of Residence - 95% said they live in single family dwellings • Language - 85% of interviews conducted in English, 15% in Spanish • Age: Mean age of respondents overall was 47.7 years old Mean age for residents of Central Pasco (47.7) and residents of West Pasco (48.0) significantly higher than mean age for residents of Eastern Pasco (40.1 years) • Children at Home: 50% reported having children at home with an average number of 1 .28 children per household A higher proportion of households in Central Pasco said they have children; respondents interviewed in Spanish more likely than those interviewed in English to have children living at home • Home Ownership 90% said they own their own homes Rate of home ownership is higher in West Pasco (94%) than Central or East Pasco; Rate of home ownership is higher among respondents interviewed in English than respondents interviewed in Spanish (91% v. 80%) 0!5� Page 13 Usage Patterns 4!5� Use of Library Facilities Page 14 • All respondents were asked how often they use library services, which library they usually visit (in Pasco or another location), for what primary purposes, at what time of the day they go and on what day of the week. • If respondents use facilities other than the Pasco Branch, they were also asked to give reasons for using other facilities. r��;r Frequency of Using Library Services Page 15 • Results found respondents about equally divided between frequent library users (41 %, at least once a month), and those who use library services rarely (43%, once a year or never). • Residents who have children living at home and those interviewed in Spanish were more likely to say they use library services most frequently "at least once a week" (18% and 27%, respectively). 0 Once a week 0 Once a month 0 Every quarter © Once a year M Seldom/Never 28% O% 20% 40% 60% 80% 100% Q1. In general, how often do you use Library facilities? Base: All respondents (n=400); 1% of respondents (n=2) answered "don't know." 4!5� Usual Time of Day for Using the LibraryPage 16 • More than half of all respondents (56%) said they typically visit the library from 3:00 until closing, most often between 3 and 6 PM (37%). Of those remaining, about one quarter (24%) said they use the library between noon and 3:00 PM. • Subgroups more likely to visit between noon and 3 PM include residents of West Pasco (28%), and seniors (65 years old and older - 41 %). • Respondents interviewed in Spanish (59%), residents who have children at home (42%) and those younger than age 65 (40%) were more likely to say they use library services between 3 and 6 PM. • Male respondents were more likely than females to say they use library services after 6 PM (25% v. 15%, females). 0 Before Noon E:1 Noon to 3 PM 0 3 PM to 6 PM 0 After 6 PM E Don't Know 24% 3 O% 20% 40% 60% 80% 100% Q4. What time of the day do you typically use Library services? Base: All respondents (n=400) Most Typical Time of the Week to Visit Page 17 • A majority of those surveyed said they are more likely to use Library facilities on weekdays (58%) than on weekends (24%). One out of six (17%) said they use Library facilities during both times of the week. • Residents who are older than age 65 and females are more likely to use the library on weekdays (88% and 62%, respectively). • Respondents who are 18 to 29 years old (41 %) and males (32%) are more likely to visit on weekends. ❑ Weekdays ❑ Weekends ❑ Both 24% 0% 20% 40% 60% 80% 100% Q5. Are you more likely to use Library facilities weekdays or weekends? Base: All respondents (n=400); 1% of respondents (n=4) said "don't know." Library Location Visited Most Often Page 18 • More than two-thirds of respondents (68%) said they most often use the Pasco Branch for library services. As a part of the "Other" category, 2% mentioned using the Bookmobile. • About one quarter said they use either of the branch libraries in Kennewick (15%) or use the Richland City Library (10%). Pasco Branch 68% Kennewick Branch 15% Richland City 10% Library Bookmobile or 4% Other Don't Know 3% O% 10% 20% 30% 40% 50% 60% 70% 80% Q2. Where do you most often go to use the Library? Base: All respondents (n=400) r��;r Library Location Visited Most Often Page 19 • Pasco Branch: These subgroups were more likely than others to say they most often use library services at the Pasco Branch: residents of Central and East Pasco (90% and 84%, respectively); seniors (older than age 65 — 86%); respondents interviewed in Spanish (88%); and respondents who said they would prefer having a limited service library facility without a tax, if offered (79%). • Richland City Library: Subgroups more likely to say they use the Richland City Library include: residents of West Pasco (14%), respondents who are 41 to 65 years old (15%) and those who said they would prefer having a full service library facility even with a tax, if offered (15%). • Kennewick Union Branch: Residents of West Pasco (17%) and respondents age 18 to 40 (19%) were more likely than others to say they use the Kennewick Union Branch most often. 4!5� Page 20 Reasons for Using the Library r�51 Reasons for Using the Library (Any Library) Page 21 ■ A large majority (81%) visit the library to check out materials in print, and nearly 3 out of 10 check out videos, CDs and other electronic media. About one quarter (26%) said they go there to use reference books, and 18% use the library computers for access to the Internet. One out of ten (10%) said they go to the library to do homework, and 11% said they participate in library services that are offered, such as "Story Time." Check out books, print material 81 Check out electronic 28% media Use reference books 26% Use computer for Internet 18% Participate in library 11 % services Do homework 10% Other services 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 °i Q2.Where do you most often go to use the Library? Base: All respondents (n=400) r�51 Reasons for Using the Library (Any Library) Page 22 • Subgroups more likely to use the library to check out books and other print materials include females (86%) and "frequent users" (those who go to the library at least monthly or more often (88%). • Respondents who have children living at home (32%), those age 30 to 40 (40%) and "frequent users" said they visit the library to check out electronic media (37%). • Males and respondents interviewed in English were more likely than others to say they use the reference books at the library (33% and 28%, respectively). • Respondents who have children living at home (17%) and those age 30 to 40 (20%) were more likely than others to say they use in-library services such as "Story Time." • Respondents interviewed in Spanish were more likely than those interviewed in English to visit the library to use computers for Internet access (32% v. 15%, English interviewees) and to do homework (32% v. 6%). r��;r Reasons for Using Libraries Not Located In Page 23 Pasco ■ "More convenient locations" surfaced as the number one reason for using libraries outside of Pasco (48%). This comment emerged as the number one reason given across all regional subgroups and all demographic subgroups, without variance. More convenient locations 48% Larger selection of materials 25% Less crowded 11% More convenient hours 11% Better access to computers 10% Other reasons 8% Don't know 9% 0% 10% 20% 30% 40% 50% Q6.What are the most important reasons you use a facility(other than the Pasco Library)? Base: Respondents who use other libraries besides the Pasco Branch (n=128) 4!5� Page 24 Importance of Factors in Determining Use of a Library 4!5� Page 25 Importance of Factors in Determining Use of a Library • Everyone was asked to evaluate the importance of four factors in determining their use of a library. They were also asked whether there were other factors not mentioned that are of importance, and if so, what they are and how important they are. • Evaluations were given on a scale of 1 to 10, with 1 being "not at all important" and 10 being "extremely important." • "Selection of materials" was rated of greatest importance (given a rating of 8 to 10) by more respondents than others. About three-quarters (78%) of those surveyed gave this factor a rating of 8 to 10. "Location, convenience" was rated most important by 71 % and "hours of operation" was rated an 8 to 10 by 63%. It is notable that only about one third of all respondents (33%) rated "access to computers" of greatest importance. • Subgroups differed significantly in their assessments of importance. Respondents interviewed in Spanish were more likely than those interviewed in English to give top importance ratings to all factors except "access to computers." Females were more likely than males to give top importance ratings to "location, convenience," "hours of operation" and "selection of materials." Residents of East Pasco were more likely than residents of West Pasco to give an 8 to 10 rating to "access to computers" (69% v. 26%). 0!5� Page 26 Importance of Factors in Determining Use of a Library ■ "Selection of materials" surfaced as the most important factor in determining use of a library (78% rated this an 8 to 10). "Access to computers" emerged as the least important factor, with more than 4 out of 10 respondents (42%) giving this item a rating between 1 and 3. El Greatest Importance (8 to 10) ❑ Medium Importance (4 to 7) ❑ Least Importance (1 to 3) Mean Selection of materials : ' , 19% c ' , 8.47 Location, convenience 26% 8.1 Hours of operation 337/6 7.75 Access to computers 24% 5.0 0% 20% 40% 60% 80% 100% Q7A to Q71). How important is each of the following in determining your use of a library facility? Base: All respondents (n=400); Non-response (don't know/refused)was 1% or less for these factors. 4!5� Page 27 Importance of Other Factors in Determining Use ■ One out of five respondents (19%) said there were other factors of importance in determining their use of a library that were not mentioned. Topping the list of these factors was "staff and customer service," followed by physical attributes of the library, such as "safety and cleanliness" and children's programs and materials. Staff, customer service 27% Safety, cleanliness 22% Children's services J% Bookmobile 4% 0% 10% 20% 30% Q7E. Is there any other factor that we didn't mention? Base: Respondents who answered "yes"when asked whether there were additional factors of importance (n=74) 4!5� Importance of Other Factors in Determining Use Page 28 • Asked to rate the level of importance of additional factors, respondents who named other factors most often gave them a rating of 8 to 10 (89% gave this rating). The mean importance rating for other factors was 9.11 , higher than the mean ratings given for any of the factors that were asked about. • Among those who named physical attributes of the library ("safety, cleanliness") 81 % gave the factor a rating of 10 ("extremely important"), and of those who mentioned "staff, customer service" 55% rated it "extremely important." ❑ Greatest Importance (8 to 10) ❑ Medium Importance (4 to 7) ❑ Least Importance (1 to 3) 7% 0% 20% 40% 60% 80% 100% WE Using the same 1 to 10 scale, how would you rate this factor? Base: Respondents who answered "yes" when asked whether there were additional factors of importance (n=74); 1% of respondents said "don't know." r45PF Page 29 Importance if City Expanded Library Services 4!5� Page 30 Importance if City Expanded Library Services • Besides rating the importance of basic factors in determining use of a library, all respondents were asked to rate the importance of having library services expanded in specific ways. • Evaluations were again given on a scale of 1 to 10, with 1 being "not at all important" and 10 being "extremely important." • About two-thirds of respondents gave a rating of "greatest importance" (a rating of 8 to 10) to "increased number of books." Nearly half (45%) gave a rating of 8 to 10 for having more "other materials" such as magazines, CDs and DVDs. • One third (32%) indicated it was of "greatest importance" to have "more books and other materials in Spanish." Respondents interviewed in Spanish were significantly more likely than those interviewed in English to give this an 8 to 10 rating (92% compared to 22%). 0!5� Page 31 Importance if City Expanded Library Services © Greatest Importance (8 to 10) ❑ Medium Importance (4 to 7) ❑ Least Importance (1 to 3) Mean Increased number of 29% 7.87 books Increased other materials ' , 38% • ' 6.53 Increased number of computers 24% 5.69 Increased in-library • ' , 45% • ' , 6.34 programs Increased materials in Spanish 16% 4.57 0% 20% 40% 60% 80% 100% Q8A to Q8E. How important is each of the following in determining your use of a library facility? Base: All respondents (n=400). Non-response (don't know/refused)was 1% or less for these factors. 4!5� Page 32 Importance if City Expanded Library Services The following subgroups gave significantly more top ratings to the following additional library services than others: • Increased number of books 6- Residents of East Pasco (88%) • "Frequent users" (use the library at least monthly or more often) — 77% • Those who would prefer having a full service library facility even with a tax, if offered (73%) Respondents who have children living at home (75%) • 30 to 40 year old respondents (77%) • Females (70%) • Increased number of public access computers Residents of East Pasco (69%) Respondents who have children living at home (47%) Respondents who are less than 66 years old (43%) • Other materials (magazines, electronic media) •% Residents of East Pasco (63%) • Those who would prefer having a full service library facility even with a tax, if offered (51%) * Respondents who have children living at home (53%) * 30 to 40 year old respondents (59%) • Increased availability of books and other materials in Spanish Residents of Central and East Pasco (45% and 63%, respectively) "Frequent users" (use the library at least monthly or more often) — 39% Respondents who have children living at home (41%) Respondents who are 18 to 40 years old (45%) • Increased in-library programs Residents of Central and East Pasco (51% and 59%, respectively) • Respondents who have children living at home (52%) t Respondents who are 18 to 40 years old (54%) t Those who would prefer having a full service library facility even with a tax, if offered (45%) • Respondents who were interviewed in Spanish were more likely than those who were interviewed in English to give top importance ratings to all additional library services. Page 33 Importance of Other Services if City Expanded ■ About one out of eight respondents (13%) answered "yes" when asked whether there were other additional services of importance that were not named. Nearly one quarter (23%) named "new branch" or a "more convenient location." Residents of the Riverview area were significantly more likely than residents of the Plateau area to mention "new branch" or "more convenient location" (38% compared to 12%). New branch, more convenient location 23% Bookmobile 15% Expanded hours 13% O% 10% 20% 30% Q81F. Is there any other factor that we didn't mention? Base: Respondents who answered "yes"when asked whether there were additional factors of importance(n=52); 1%of respondents (n=2)said "don't know." 4!5� Importance of Other Services if City Expanded Page 34 • Asked to rate the level of importance of additional services, respondents who named other services most often gave them a rating of 8 to 10 (90% gave this rating). The mean importance rating for additional services was 9.0, higher than the mean ratings given for any of the factors that were asked about. • Among those who named "new branch" (n=12 respondents), 83% rated it an 8 to 10. 88% of respondents who mentioned "bookmobile" gave it a rating of 8 to 10, and 100% of the 7 respondents who mentioned "expanded hours of operation" gave "expanded hours" a rating of "1 0.11 ❑ Greatest Importance (8 to 10) ❑ Medium Importance (4 to 7) ❑ Least Importance (1 to 3) . 1% ' 0% 20% 40% 60% 80% 100% WE Using the same 1 to 10 scale, how would you rate this factor? Base: Respondents who answered "yes" when asked whether there were additional factors of importance (n=50); 4!5� Page 35 Preferred Location for Increased Services 4!5� Preferred Location for Increased Services Page 36 • Just over half of all respondents (51%) said they would prefer having increased services offered at the existing Pasco Library. 43% said they would like to have additional services offered at another branch location. • Respondents who live in Central Pasco (72%) and East Pasco (75%) were more likely than those who live in West Pasco (40%) to prefer services be offered at the existing Pasco Library. Spanish-language respondents and residents older than age 65 were also more likely to prefer the current Pasco Library (80% and 66%, respectively). • Those who in live in West Pasco were more likely prefer having increased services offered at an additional branch (54%). ❑ Existing Pasco Library ❑ An additional branch ❑ Some other location M Don't Know 43% 0% 20% 40% 60% 80% 100% Q9. If you were interested in any increased services, where would you like to see the services offered? Base: All respondents (n=400) 4!5� 1 St, 2nd and 3rd Choice Locations for Increased Page 37 Library Services • Respondents who said they would like increased services to be provided at some other place than the existing Pasco Library were asked to name their top choice for location of these services, followed by their second choice of location and their third choice. • The Plateau area was most favored as a first choice, gathering nearly half (49%) of all respondents' "top choice" mention. Riverview was named as the first choice of a location by 29% of Pasco residents. • When the results were analyzed by region of residency it was found that more residents of the Plateau area specified the Plateau as their number one choice (65%) than residents of the Riverview area specified Riverview as their top choice (55%) or residents of East Pasco specified the Eastern part of the City as their top choice (50%). 45� 1 St' 2nd and 3rd Choice Locations for Increased Page 38 Library Services • The Plateau Area was the 1St or 2nd choice of location for new library services among 74% of respondents, overall. • The Riverview Area gathered 65% of respondents' 1 st or 2nd choice of location. • Another 12% mentioned West Pasco in general as the 1st or 2nd choice of location. First Choice Second Choice Third Choice Plateau Area 49% 25% 1% Riverview Area 29% 36% 3% West Pasco (general) 10% 2% 2% East Side 6% 7% 16% Central Area 1% 2% 5% Some Other Location 3% 2% 2% Q10A—Q10C. Where would you prefer such a facility be located? What would be your second choice? And what would be your third choice? Base: Respondents who answered "yes"when asked whether there were additional factors of importance (n=52); 1% of respondents answered "don't know." Page 39 Support and Preference for Full Service vs . Limited Facility 4!5� Page 40 Support for Type of Facility for Expanded Services ■Respondents were asked whether they were likely to support two types of facilities under consideration. One facility is a new branch, comparable in size to the existing library that would require a one-time property tax increase of about $15 to $20 paid annually for an average $150,000 home. The other facility under consideration is a satellite library possibly operated as a `storefront' that would require no property tax increase. ■Results found respondents equally likely to support either type of facility. ■The new facility would be "likely" supported by 82% and "not likely" supported by 16%. Almost 87% of East Pasco residents and 84% of West Pasco residents were "likely" to support the new facility. ■The satellite facility would be "likely" supported by 82% and "unlikely" supported by 17%. Almost 83% of West Pasco residents were "likely" to support the new facility. 4!5� Page 41 Support for Type of Facility for Expanded Services Respondent subgroups differed significantly in these ways: • Likely to support a new branch with a tax increase: • Respondents 50 years old and younger, compared to those older than 50 • Residents who have children living at home, compared to those who have none • Respondents who said they would prefer having a full-service type of facility paid for by a small tax, compared to those who would prefer a limited service facility requiring no tax subsidy • Unlikely to support to a new branch with a tax increase: • Residents of Central Pasco, compared to residents of East Pasco and West Pasco • Residents who have no children living at home • Respondents who prefer having limited service library facilities requiring no tax • Males, compared to females • Likely to support a satellite facility • Plateau area residents, compared to those who reside in Riverview • Respondents who prefer having limited service library facilities requiring no tax, compared to those who prefer a full-service facility • Unlikely to support a satellite facility: ■ Riverview area residents, compared to Plateau area residents 45� Page 42 Support for Type of Facility for Additional Services ■ Respondents were about equally likely to support either type of facility that was proposed. CM Very likely M Likely © Unlikely 0 Highly unlikely New facility with tax 40% Satellite facility with no 0 tax 38/o 0% 20% 40% 60% 80% 100% Q11. If the City of Pasco builds a new branch that is about the same size as the existing library and yearly property taxes increased one time by$15 to$20 for an average $150,000 house, how likely are you to support such a branch? Q12:The City is considering the possibility of smaller,satellite library facilities which could possibly be located as a'storefront'in a commercial area. This facility would be likely to have a limited selection of materials,a computer to search the entire library collection,free access to a number of computers for Internet and other use and would be a place to pick up and drop off materials. There would no additional property tax cost. How likely would you be to support such a facility? Base: All respondents(n=400). Non-response(don't know/refused)was 2%for Q11 and 1%for Q12. 4!5� Overall Preference for Type of Facility Page 43 • Respondents were significantly more Q13: If a new facility is likely to prefer having a full service offered, which would ou facility, even with a small tax to pay for Y it, than a limited service facility requiring prefer? no tax (55% v. 43%). ■ Subgroups more likely to prefer a full Full Limited service facility include: service w Residents of East Pasco compared to / tax service w residents of Central Pasco (69% v. / no tax 46%) 55% 43% Respondents who have children living at home compared to those who have none (66% v. 43%) Respondents who are 50 years old and younger compared to those older than age 50 • Subgroups more likely to prefer a limited service facility include: Don't Residents of Central Pasco compared to know residents of Eastern Pasco (49% v. 28%) Respondents who have no children living 2% at home, compared to those who have children in the household (54% v. 31%) Respondents over 50 years of age, Base: All respondents (n=400) compared to those 50 years old and younger 4!5� AGENDA REPORT TO: City Council March 4, 2009 FROM: Gary Crutchfi anager Workshop Mtg.: 3/9/09 SUBJECT: Disposal of Fo eited Firearms I. REFERENCE(S): 1. Memorandum to City Manager from Police Chief dated 3/2/09 H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 3/9: Discussion III. FISCAL IMPACT: Varies; refer to reference#1 IV. HISTORY AND FACTS BRIEF: A) Council discussion of a recent recommendation to dispose of firearms by auction through a licensed firearms dealer revealed some concern on the part of Council that the disposition process should include the ability for individual citizens (not licensed firearms dealers) to be able to bid for and acquire individual firearms. Staff was requested to review the legal obligations associated with disposal of firearms and to identify how other local agencies dispose of them. That information is outlined in reference #l, memorandum from Chief Austin dated 3/2/09. V. DISCUSSION: A) RCW 9.41.098(2)(a) clearly authorizes disposal of forfeited weapons: "...in any manner determined by the local legislative authority" (that is, City Council). Chief Austin's memorandum outlines the process used by the city since 1993 (when the statute was amended to authorize local discretion); at that time, the city elected to continue the practice of selling forfeited weapons to licensed firearms dealers only. B) Council should discuss the pertinent information and provide appropriate direction to staff, in the form of a policy conclusion. 4(g) PA'S CU CI r Y '-i f>,1.. P=�;E►vFr7 200 4a4tce CV Y V11AI�A -ER oEpr JF�►C E pA6C� O y V Memorandum Cffice of the Chief To: Gary Crutchfield, City Manager From: Denis Austin, Chief of Police Subject: Firearm Disposal, Auction, or Sell Procedures Date: March 2, 2009 The following information on local agency practices for disposal, auction, or sale of forfeited firearms is provided below. Revised Code of Washington Requirements: RCW 9.41.098 Forfeiture of firearms—Disposition—Confiseation (2) Upon order of forfeiture, the court in its discretion may order destruction of any forfeited firearm. A court may temporarily retain forfeited firearms needed for evidence. (a) Except as provided in (b), (c), and (d)of this subsection,firearms that are: (i)Judicially forfeited and no longer needed for evidence, or(ii)forfeited due to a failure to make a claim under RCW 63.32.010 or 63.40.014; maybe disposed of in any manner determined by the local legislative authority.Any proceeds of an auction or trade may be retained by the legislative authority. This subsection(2xa)applies only to firearms that come into the possession of the law enforcement agency after June 30, 1993. By midnight, June 30, 1993, every law enforcement agency shall prepare an inventory, under oath, of every firearm that has been judicially forfeited, has been seized and may be subject to judicial forfeiture, or that has been, or may be,forfeited due to a failure to make a claim under RCW 63.32.010 or 63.40.010. (b) Except as provided in (c)of this subsection, of the inventoried firearms a law enforcement agency shall destroy illegal firearms, may retain a maximum of ten percent of legal forfeited firearms for agency use, and shall either: (i)Comply with the provisions for the auction of fiream}s in RCW 9.41.098 that were in effect immediately preceding May 7, 1993-, or (ii)Trade, auction, or arrange for the auction of, rifles and shotguns. In addition, the law enforcement agency shall either trade, auction, or arrange for the auction of, short firearms, or shall pay a fee of twenty-five dollars to the state treasurer for every short firearm neither auctioned nor traded,to a maximum of fifty thousand dollars. The fees shall be accompanied by an inventory, under oath, of every short firearm listed in the inventory required by(a)of this subsection, that has been neither traded nor auctioned. The state treasurer shall credit the fees to the firearms range account established in RCW 79A.25.210. All trades or auctions of firearms under this subsection shall be to licensed dealers. Proceeds of any auction less costs, including actual costs of storage and sale, shall be forwarded to the firearms range account established in RCW 79A.25.210. (c)Antique firearms and firearms recognized as curios, relics, and firearms of particular historical significance by the United States Treasury Department Bureau of Alcohol, Tobacco, and Firearms are exempt from destruction and shall be disposed of by auction or trade to licensed dealers. (d) Firearms in the possession of the Washington State Patrol on or after May 7, 1 993, that are judicially forfeited and no longer needed for evidence, or forfeited due to a failure to make a claim under RCW 63.35.020, must be disposed of as follows: (i) Firearms illegal for any person to possess must be destroyed; (ii)the Washington State Patrol may retain a maximum of ten percent of legal firearms for agency use; and (iii)all other legal firearms must be auctioned or traded to licensed dealers. The Washington State Patrol may retain any proceeds of an auction or trade. (3)The court shall order the firearm returned to the owner upon a showing that there is no probable cause to believe a violation of subsection (1)of this section existed or the firearm was stolen from the owner or the owner neither had knowledge of nor consented to the act or omission involving the firearm which resulted in its forfeiture. (4)A law enforcement officer of the state or of any county or municipality may confiscate a firearm found to be in the possession of a person under circumstances specified in subsection (1)of this section. After confiscation, the firearm shall not be surrendered except: (a)To the prosecuting attorney for use in subsequent legal proceedings; (b)for disposition according to an order of a court having jurisdiction as provided in subsection(1)of this section; or(c)to the owner if the proceedings are dismissed or as directed in subsection(3) of this section. Pasco PD Procedure: When a weapon is forfeited by the court to Pasco PD or is a found or unclaimed weapon retained for safekeeping, a computer check is conducted to determine if it is stolen or wanted by another agency for an active investigation. After determining that a forfeited weapon in the possession of the police department is not stolen or wanted by another agency, it is examined for value by the Support Services Division Captain to determine if it is suitable for submission to auction or should be destroyed. The weapon is then submitted to the Investigative Services Division Captain for review and recommendation to the Chief of Police for auction or destruction of the weapon. The weapon is then submitted to the Chief for final authorization to either auction or destroy. If approved for auction, the weapon is retained in evidence until a group of weapons is accumulated and likewise approved and submitted for auction. The weapons are declared as excess property and submitted to the City Clerk for approval to auction. The City Clerk provides the excess property declaration to the City Council for approval to auction. The auction process is coordinated with the police department evidence technician and the weapons are released to a Federal Firearm Licensed Dealer and Auctioneer for auction with the following conditions: 1. The Auctioneer assumes responsibility for all expenses incurred in the advertisement and conducting of the auction_ 2_ The Auctioneer agrees to only sell the weapons to other Federal Firearm Licensed Dealers following a competitive bidding process. 3. The Auctioneer retains 25% of the selling price as a commission. 4. The Auctioneer submits a check to the City Clerk for remaining 75% of selling price. 5. The City's finance manager pays the Washington State Treasurer 10%of the selling price as required by RCW. The City's finance manager deposits the remaining 65% of the sell price in the City General Fund. After the auction, the FFL Dealers who purchased the firearms are allowed to sell the firearms to individuals as permitted by state and federal laws. Franklin County Sheriffs Office Procedure: In order to keep 100% of the"money" received from the firearm sales, FCSO does not take cash. FCSO has the firearms dealer issue a "credit" to the department for use toward future equipment purchases. When the FCSO orders new firearms or has one repaired by the same dealer, the cost is covered or"paid"from the accumulated credit. According to FCSO, this process is legal and was recently reviewed and confirmed as appropriate. Benton County Sheriffs Office Procedure: A firearm is subject to auction in the following circumstances: 1. Forfeited by the court 2. The owner fails to pickup the weapon (then it is considered abandoned) 3. If not able to return the weapon to the owner due to the owner being a convicted felon The Patrol Lieutenant determines if the weapon has a value and whether to destroy or auction it. The Lieutenant waits until he has a quantity of firearms and then puts out a notice to several Federal Firearms Licensed Dealers for bids. BCSO gets a "credit" for the value of the firearms based on the winning bid. BCSO uses the "credit"to purchase ammunition or firearms for the department. Kennewick Police Department Procedure: KPD follows the requirements set forth in the RCW. KPD accumulates a quantity of firearms for disposal, the Chief of Police views the firearms and determines which ones will be auctioned and which will be destroyed. The evidence technician separates the firearms to be auctioned, documents each one, and contacts the auctioneer to schedule the auction. Firearms scheduled for destruction are chopped up on a date after the auction. The KPD Records Unit is notified of all transactions for the department files. Richland Police Department Procedure: RPD doesn't auction off firearms.They trade them to an FFL dealer for credit to purchase arms equipment for the PD. The auctioneer is sent a spread sheet with the information he needs (make, model, serial number, etc). Then the dealer comes in and looks at the guns to get a value, submits the list it to the Captain, who reviews it. The Chief signs off on it and gives the go-ahead to release the guns.The dealer comes and picks up the guns and the PD gets "x" amount of dollars in credit to purchase new weapons. This method has worked successfully for several years. RPD trades off about 60 guns a year this way. As you can see, each agency does it a little bit differently. No one way is right or wrong. I have provided you with several options and a recommendation. It boils down to each City's philosophy on dealing with guns. Options for City of Pasco Based on the law Pasco could process forfeited weapons as follows: 1. We could continue to process these weapons, as we have been. That is, auctioning them through a licensed dealer to licensed dealers for cash. 2. We could destroy all forfeited weapons, as a matter of policy. 3. We could sell the weapons directly to the public. This could expose Pasco to major liability. 4. We could trade them to a licensed dealer for credit or trade, later purchasing weapons for the department. Recommendation It is the Police Department recommendation that we continue to process these weapons as we have in the past. Selling only to licensed dealers insures that the weapons will be sold to citizens only after a thorough background. All appropriate paperwork is completed and the purchaser cleared by computer check. Our experience is that this has been the best method to get maximum dollars for any sale. If you have any questions please contact me. AGENDA REPORT FOR: City Council March 5, 2009 TO: Gary Crutchfi i Manager Workshop Mtg.: 3/9/09 Stan Strebel, A & S Director Regular Mtg.: 3/16/09 FROM: Jim Chase, Finance Manager SUBJECT: Use Tax on Natural Gas I. REFERENCE(S): I. Proposed Ordinance II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 3/9: Discussion 3/16: MOTION: I move to adopt Ordinance No. imposing a Use Tax on Natural Gas used within City Limits. III. FISCAL IMPACT: $30,000+ annually IV. HISTORY AND FACTS BRIEF: A) The city has collected utility/occupational tax for natural gas from various sources for decades. Cascade Natural Gas is the largest payer of the tax. As a result of deregulation by the state in the early 1980s, some businesses started purchasing their natural gas supplies from "brokers" (at discount rates) and contracted with Cascade Gas to transport the gas from point A to point B. Those "brokers" have also been required to pay the city's utility tax. B) A 2007 lawsuit involving a manufacturing company purchasing natural gas outside the city limits of the City of Tacoma and trucking it into Tacoma where it was used in their manufacturing process, originally favored Tacoma's taxing of the gas actually used within city limits. It was based on RCW 82.14.230 authorizing cities to impose a use tax for the privilege of using the natural gas. That decision was appealed and overturned last year by the State of Washington Court of Appeals. The court's decision agreed with that of the manufacturing company that RCW 82.12.010 indicates that "use" is the first act within the state by which the taxpayer takes or assumes dominion or control. The first act typically takes place outside of the city limits. That appeal has been presented to the Supreme Court for review and is pending. C) The effect of the court case, unless overturned by the Supreme Court, will reduce Pasco's utility tax income an estimated $30,000 annually. V. DISCUSSION: A) The Association of Washington Cities on behalf of more than 40 cities across the state, has asked the State Legislature to change the language in the state law so the use tax on natural gas can occur where the tax is used (House Bill 1422). B) Staff recommends adopting the proposed ordinance clarifying the tax on "brokered" natural gas as a "use tax." Doing so will minimize the 2009 loss of utility tax income, assuming legislative approval of HB 1422. 4(h) ORDINANCE NO. AN ORDINANCE RELATING TO IMPOSING A USE TAX ON NATURAL GAS AND ADDING A NEW SECTION TO CHAPTER 3.98 OF THE PASCO MUNICIPAL CODE WHEREAS, the City of Pasco currently requires all business within the City of Pasco to be licensed and pay the required fees, and, WHEREAS, the license fee for any Utility is the payment of the Utilities-Occupation Tax, and, WHEREAS, this tax would include businesses selling, manufacturing, or distributing natural gas for residential,commercial or industrial consumption, and WHEREAS, the Occupation-Utility Tax is currently eight and one-half percent (8.5%) of the gross operating revenues from such sales within the limits of the city, and WHEREAS, there are businesses that broker the sales of natural gas to customers inside city limits, whose sales may technically take place outside of Pasco city limits, and WHEREAS, in order to assure equity in the collection of a tax on all natural gas used within Pasco city limits, it is necessary to impose a Use Tax on the use of Brokered Natural Gas that is used within city limits, and WHEREAS, the rate of use tax on Brokered Natural Gas shall be set at the same rate as the Utility-Occupation Tax, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO HEREBY ORDAIN AS FOLLOWS: Section 1. There is hereby added a new section 3.98.022 to Chapter 3.98 of the Pasco Municipal Code to read as follows: 3.98.022 NATURAL GAS — USE TAX IMPOSED. There is hereby levied and shall be collected from every person within the City a use tax for the privilege of using natural gas within the City as a consumer. The tax shall be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rate imposed upon the occupation or business activity of furnishing or selling natural gas as provided in Section 5.32.040 (C) as now or hereafter amended. The amount shall be subject to such exemptions and exclusion and procedures as provided by RCW 82.12.022 and the rules of the State of Washington Department of Revenue adopted in accord therewith. Section 2. This ordinance shall be in full force and effect five (5) days after passage and publication. PASSED by the City Council of the City of Pasco, Washington and approved as provided by law this 16th day of March 2009. Joyce Olson Mayor ATTEST: APPROVED AS TO FORM: Debra L. Clark Leland B. Kerr City Clerk City Attorney Use Tax on Natural Gas Page 2 AGENDA REPORT FOR: City Council March 6, 2009 TO: Gary Crutchfi y anager Workshop Mtg.: 3/9/09 Stan Strebel, A minis ative& Community Services Director Regular Mtg.: 3/16/09 FROM: Jim Chase, Finance Manager SUBJECT: Ambulance Utility Monthly Rate Increase I. REFERENCE(S): 1. Ambulance Service Fund Financial History II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 3/9 DISCUSSION: III. FISCAL IMPACT: See below IV. HISTORY AND FACTS BRIEF: In 2007, after the Ambulance Utility Rate Study was completed by HDR, Inc., the City began charging a monthly ambulance utility fee of $3.00. Also, as a result of the rate study, the amount billed for an ambulance transport for residents was reduced to $660, from the previous rate of $950. The non-resident rate was also reduced to $990, from $1,140. The monthly ambulance utility fee of $3.00, which every residential and commercial location pays, generated a total of$693,937 for the utility in 2008. Ambulance transports and the related mileage fees billed during 2008 generated a "net" total of $835,857 (Medicare & Medicaid/DSHS write-offs totaled $591,344 and the amount sent to collection totaled $172,591). The City's General Fund is also required, per state law, to contribute to the utility. That amount totals $420,000 each year. Total revenues in the utility for 2008 amounted to $1,977,759. Total operating expenses (not including capital expenditures) for the utility in 2008 amounted to $2,035,240. This equates to an operating loss of about $57,480. Capital assets purchased in 2008 totaled about $59,277. This represents a shortfall in the fund of$116,757. 2009 budgeted revenues less budgeted operating expenditures indicate a shortfall of approximately $63,950. Capital assets budgeted totals $12,500 for an overall shortage of $76,450 (for 2009). V. ADDITIONAL DISCUSSION To recover the shortfall from 2008 and provide additional funding in 2009, a rate adjustment needs to be made. Option 1: The monthly fee could be increased to $3.60 (a 20% increase) and would generate approximately$135,000 of revenue. This would equate to an additional $7.20 per year for a single family residence. 4(i) Option 2: Increase transport fees by 23% to $815 resident and $1,225 non-resident. This would generate approximately the same dollar amount. This estimate calculation is more complex in that approximately two thirds of the transports are billed to Medicare or Medicaid/DSHS where the City is required to accept a reduced payment amount. The amount the City receives from Medicare for Advanced Life Support (ALS) and Basic Life Support (BLS) for 2009 is $349.94 and $294.68 respectively. Staff then bills the client the authorized co-pay amount (usually$75 to $95), and writes off the remainder. The amount received from Medicaid/DSHS for ALS and BLS for 2009 is $168.43 and $115.34 respectively and the City writes off the remainder (there is no co-pay billed to the patient). Option 3: Provide additional General Fund support (in addition to the $420,000 it is already obligated to provide). VI. ADDITIONAL INFORMATION The City of Richland's current monthly ambulance utility rate is $3.16. Their transport rate is$608.18 for residents and $912.27 for non-residents. The City of Kennewick's current monthly ambulance utility rate is $3.12. Their transport rates are $578.06 for residents and $867.09 for non-residents. Both Richland and Kennewick have lower percentages of Medicare and Medicaid/DSHS billings than Pasco. The City of Moses Lake current monthly fee is $3.58. The City of Sunnyside charges $3.75. O O O O O 0 O O O O O O O U') C)O Co (pn (Qn O Cl O O O N U) y O O O N O v Ch lr 00 V CA Cl) O O 0 O N r 0 C) (D 0 O 00 a o O M O N ~ ao r m c to O CD 0 N N N m f+ 1f7 co r "Cr O r r r CL O o o O 0 v M h (n ao co o p O O O O O O O CD M N to (D O CD 'cr ti r Cn CO 00 C✓i O O 6 O 0 V 00 t4 0 O 0 r O r- N N O � � O to 6) O N r" O 7 tri 00 f- M O (- (n 0 C to 06 Cl O O N N < v m O O CD r U N Q r r O 0 O Cl O O Cl O CD M N (t) Cn f-- 00 O co c O O O O O r O � N h ti r M V N ,O 0 r (� (G I-t O Cl N �t Cn O r r � O M CO 00) O O r O 0 I` 1q' CD O OD O 0 0 a O O N N Q � M CQ co 0 rt CD 00 N co N N r r r LL 3 CD c O O O O Cn O M v Cl) 0 CO 0 I- I O CD O O O O tt) N 6) v M M N O O M 000 3 d (n O r r O M m r O N Co N 00 O 0 r N O U N (n r- 00 N Cl) to 0 N a N r N Q N r 0 0) N 6 64 N `- r 4R N 9 a) * U O O O O co O N N tl0 O v O r- r- ti •� O O O O N M r CC) CO v O C[) r (t) 0 W n M Ln N `-' to O � O 0 0 M N Cfl co O � 0 O r r O y CO ti 00 O 00 O CD C CD 0 r N N U 0 ONvO m 6N) Cn N r- - N r: Q - " C1 4H r r r r ER W 0 _ C O Co O O O O Cn N 06 co O 00 tt CD O N "J U') O O 0 0 O m 0 (n 0 0 0 O 00 to M O r O (n O O ([7 t0 ' to N fa 0 O r C'7 O N r N V r C2 cn co r r O 7 O O C) r O N O 'cr N O r (n M O r r to V N (f CD ti N Q N O O N ";r (Y N CD r r r O EH 64 r W, N •k 0 O O O 00 r 61) N 0 N O v v O O (n 0 O O 00 CD N r- Cl) N O M 00 I- +n N Ch M N 0 O O Il- O ti N CD � ti O 0 Ln v (D r r 0 � N 0 O O N � � CD N N 0 0v 0 N N Q co 00 M Cl 6% r r r Z a) to 0 � N CD N nw - � N C (C4 U- N N ym.� U- Q Q Q to Uj .N+ O7 d X ZT Li a) Q7 3 is C tL F 0 C li LL tL N Z 2 2 N e`a CDa F- t°'a W c c m Q H v aci N L) W > m m @ N v [) (ca x (tea m Z _ a0i Q � (U L � 0) 3 75 W a � Q cn E to U a� a� � E °c' O E J O C N O Q i c O 7 .'ACS C v U 7 N Cam) Q a Q 2 E a) o TO Q) of 6 a m 0 a ¢ w z Q m Q 2 0 0 0 U r AGENDA REPORT FOR: City Council DATE: February 19, 2009 WORKSHOP: March 9, 2009 TO: Gary Crutchfi ty Manager REGULAR: March 16, 2009 Stan Strebel, A st nity Services Director r. FROM: Jim ha mane Manager SUBJECT: IDENTITY THEFT PREVENTION PROGRAM I. REFERENCE(S): 1) Copy of Memo from Ogden Murphy Wallace, PLLC, Attorneys at Law 2) Proposed Resolution 3) Initial Identity Theft Prevention Program 11. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 3/9/09 DISCUSSION 3/16/09 MOTION: 1 move to approve Resolution No. adopting an Identity Theft Prevention Program to comply with the Fair and Accurate Credit Transactions Act of 2003. III. FISCAL IMPACT: There will be staff time involved with managing the program. IV. HISTORY AND BRIEF FACTS: The Federal Trade Commission has issued regulations requiring financial institutions and creditors to develop and implement identity theft prevention programs and policies. These identity theft prevention programs must provide for the identification, detection, and response to patterns, practices, or specific activities—known as "red flags"—that could indicate identity theft. The "Red Flag"rules apply to "financial institutions" and"creditors" with "covered accounts." Pasco is considered a"creditor" in that it extends credit to utility customers that are billed after they receive the goods and/or services. The Federal Trade Commission has granted a six month delay from the initial November 1, 2008 deadline. The program needs to be in place not later than May 1, 2009. V. DISCUSSION: Identity theft is a growing concern. The customer service(utility) staff currently has many procedures in place to minimize the chance of identity theft. Further training will be provided. We can all benefit from continuing education regarding identity theft and how to spot potential situations and/or prevent it from happening. VI. OTHER COMMENTS The Act requires approval and authorization of the initial program from the Board of Directors or City Council to comply. The program will be updated as needed. 4(j) DEN �PHY AULSACE n L L. c. A 9 7 p R 1 L. Y S AI L A K MEMORANDUM DATE: October 20, 2008 TO: All Cities FROM: Kristin N. Eick Phil A. Olbrechts RE: FACTA Red Flag Guidelines The Federal Trade Commission has issued regulations requiring financial institutions and creditors to develop and implement written identity theft prevention programs by November 1, 2008, under the Fair and Accurate Credit Transaction Act of 2003 (FACTA). Municipal utilities are subject to these requirements, and the City Councils of all cities that operate utilities must adopt programs that meet the requirements of FACTA. These identity theft prevention programs must provide for the identification, detection, and response to patterns,practices, or specific activities- known as "red flags" -that could indicate identity theft. Accompanying this memo is a sample program that complies with FACTA requirements. Who must comply with FACTA? Financial institutions and"creditors"that maintain "covered accounts," as defined in the Act, must comply with FACTA's Red Flag requirements. Under FACTA, a"creditor" means an entity that regularly extends, renews,or continues credit.' Non-profit and government entities are included within this definition of"creditor."2 The Code of Federal Regulations establishes that the term "creditor" includes lenders such as banks, finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies.3 "Credit" is defined in the Act as "the right granted by a creditor to a debtor to defer payment of debt or to incur debts ' 16 C.F.R. §681.2(b)(5)(2008); 15 U.S.C. § 1681a(r)(5)(2006); 15 U.S.C. 1691a(e)(2006). Federal Trade Commission,FTC Business Alert,New"Red Flag"Requirements for Financial Institutions and Creditors Will Help Fight Identity Theft,June 2008,available at http://www.ftc.gov/bcp/edu/pubs/business/alerts/altO5O.sbtm. s 16 C.F.R. §681.2(b)(5)(emphasis added). {KNE707333.DOC;1100005.1010331}ESTABLISHED 1402 A Member of the International Lawyers Network with independent member law firms worldwide 1601 Fifth Avenue,Suite 2100 • Seattle,WA 98101-1686 • 206.447.7000 • Fax: 206.447.0215 • Web: www.omwlaw.com All Cities October 20,2008 Page 2 and defer its payment or to purchase property or services and defer payment therefor. ,4 Therefore, essentially any business, whether public or private, that provides services and accepts payment later is considered a creditor if it maintains"covered accounts." "Covered accounts" include accounts that financial institutions or creditors offer or maintain primarily for personal, family, or household purposes,that involve or are designed to permit multiple payments or transactions, such as a credit card account,mortgage loan, automobile loan, margin account, cell phone account, utility account, checking account, or savings account.5 The term "covered accounts" also includes any other account that the financial institution or creditor offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the financial institution or creditor from identity theft, including financial, operational, or litigation risks.6 Because"covered accounts" specifically include utility accounts, municipalities deferring payment for services such as water, electric, or garbage collection must comply with FACIA. How do I comply with FACTA? FACTA requires that municipalities, as creditors, develop a written Identity Theft Protection Program that is appropriate for the size and complexity of the municipality.7 The Program must include elements to identify, detect, and respond to Red Flags. In addition, the Program must provide for a periodic updating process to reflect changes in risks to the creditor's customers.8 Each creditor is required to obtain approval of the initial written Program from either its board of directors or an appropriate committee of the board, i.e.,the City Council.9 The board of directors, a committee of the board, or an employee at the level of senior management must be assigned the duties of oversight, development, implementation, and administration of the Program.16 Further, staff must be trained appropriately and must oversee service providers providing services relating to the Act.11 Staff should prepare a report at least annually for the person specifically responsible for oversight of the program. This report should include an evaluation of the effectiveness of the Program with respect to opening accounts, existing covered accounts, service provider arrangements, significant incidents involving identity theft and responses, and recommendations for changes to the Program.12 What are "Red Flags?" 4 16 C.F.R. § 681.2(b)(4); 15 U.S.C. 1681a(r)(5); 15 U.S.C. 1691a(d). 5 16 C.F.R.§681.2(b)(3)(i)(emphasis added). 6 16 C.F.R.§681.2(b)(3)(ii). 16 C.F.R.§681.2(d)(1). s 16 C.F.R.§681.2(d)(2). 4 16 C.F.R. §681.2(e)(1). L0 16 C.F.R. §681.2(e)(2). " 16 C.F.R. §681.2(e)(3)-(4). 12 16 C.F.R. app. § 1681 A(VI)(b)(1). All Cities October 20, 2008 Page 3 Red Flags are patterns,practices, or specific activity that indicate the possible existence of identity theft.' There are five general categories of Red Flags. The Federal Trade Commission has also provided a list of 26 suggested Red Flags in the appendix to the Code of Federal Regulations. The five categories are: • Alerts or notifications from consumer reporting agencies or service providers, such as fraud detection services; • Presentation of suspicious documents, such as identification documents that have been forged or altered; • Presentation of suspicious personal identifying information, such as a suspicious address change or social security number; • Unusual use of or other suspicious activity relating to a covered account, such as identification of use of an account in a manner inconsistent with established patterns of activity on the account; and • Notices from customers, victims of identity theft, law enforcement, or other persons regarding identity theft in connection with covered accounts held by the creditor.'4 Appropriate responses to Red Flags include: • Monitoring an account; • Contacting the customer; • Changing passwords and security codes; • Reopening an account with a new number; • Not opening a new account; • Closing an existing account; • Notifying law enforcement; and • Determining that no response is warranted under the particular circumstances.15 How is FACTA enforced? FACTA does not allow for private enforcement of the Red Flag regulations. However, the regulations are enforced by the Federal Trade Commission.16 If the creditor fails to develop and implement a Program,the Federal Trade Commission may enforce the failure as an unfair or deceptive act or practice in commerce.'? The consequences may include a cease and desist order from the Federal Trade Commission after a hearing and civil penalties not to exceed$2,500 per violation.'8 13 16 C.F.R. §681.2(b)(9). 14 16 C.P.R. Supplement A to App.§ 1681 A. 1' 16 C.F.R.app. § 1681 A(N). 16 15 U.S.C.§ 1681m(h)(8);see also Perry v. First Nar'l Bank,459 F.3d 816,819-20(7th Cir.2006). " 15 U.S.C. § 1681m(h)(8)(B); 15 U.S.C. § 1691s(a)(1). 1a 15 U.S.C. §45(a)(1); §45(b);§ 1681s(a)(2)(A). All Cities October 20, 2008 Page 4 What Type of Program Must I Adopt? Attached you will find a sample program that the City Council may adopt. It is important to remember, however,that the Red Flag Guidelines were designed to provide flexibility to the individual utility in adopting their Program. Because the process used to open new accounts and monitor existing accounts will vary by utility,not every Red Flag will be applicable to each utility. For example,the utility may not use credit reporting, and therefore, will not encounter Red Flags relating to consumer reports. Thus, the goal is to be aware of the Red Flags, remain vigilant in detecting those Red Flags that are applicable to a particular utility, and notify the Finance Director of the City if a Red Flag is encountered. As most cities will readily observe, the Red Flags have little relevance to the billing practices of city utilities. The Federal Trade Commission, responsible for enforcement of FACTA, offers no guidance on how city utilities can implement these policies other than to suggest"common sense." There is obviously little common sense in designating City utilities as "creditors" subject to FACTA. Implementing proactive measures to detect identity theft, such as comparing the names of all persons paying utility bills to the owners of property served, can be highly disruptive and costly to city operations. The recommended program minimizes costs as much as possible and is comparable to programs adopted throughout the country. More may be required of cities as court opinions and federal regulations further clarify the responsibilities of city utilities. KNE: RESOLUTION NO. A RESOLUTION APPROVING AN IDENTITY THEFT PREVENTION PROGRAM TO MEET THE REQUIREMENTS OF THE FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003 WHEREAS, The Fair and Accurate Credit Transactions Act of 2003, ("Red Flags Rule") requires certain financial institutions and creditors with "covered accounts" to prepare, adopt, and implement an identity theft prevention program to identify, detect, respond to and mitigate patterns,practices or specific activities which could indicate identity theft; and WHEREAS, the City maintains certain continuing accounts with utility service customers and for other purposes which involve multiple payments or transactions, and such accounts are "covered accounts" within the meaning of the Red Flags Rule; and WHEREAS, to comply with the Red Flags Rule, the City Council is required to approve the initial Identity Theft Prevention Program; now THEREFORE, THE CITY COUNCIL OF PASCO, WASHINGTON HEREBY RESOLVES AS FOLLOWS: Staff is hereby authorized and directed to implement the accompanying initial Identity Theft Prevention Program in accordance with, and to comply with,the Fair and Accurate Credit Transactions Act of 2003. PASSED by the City Council of the City of Pasco, Washington, this 16th day of March, 2009. SIGNED in authentication of its passage this 16th day of March, 2009. Joyce Olson, Mayor ATTEST APPROVED AS TO FORM: Debra Clark, City Clerk Leland B. Kerr, City Attorney CITY OF PASCO IDENTITY THEFT POLICY I. BACKGROUND The risk to the City, its employees and customers from data loss and identity theft is of significant concern and can be reduced only through the combined efforts of every employee and contractor. II. PURPOSE The City adopts this sensitive information policy to help protect employees, customers, contractors and the municipality from damages related to the loss or misuse of sensitive information. This policy will: 1. Define sensitive information; 2. Describe the physical security of data when it is printed on paper; 3. Describe the electronic security of data when stored and distributed; and 4. Place the City in compliance with state and federal laws regarding identity theft protection. This policy enables the City to protect existing customers, reducing risk from identity fraud, and minimize potential damage to the City from fraudulent new accounts. The program will help to: 1. Identify risks that signify potentially fraudulent activity within new or existing covered accounts; 2. Detect risks when they occur in covered accounts; 3. Respond to risks to determine if fraudulent activity has occurred and act if fraud has been attempted or committed; 4. Update the program periodically, including reviewing the accounts that are covered and the identity risks that are part of the program. III DEFINITIONS Identity Theft means fraud committed or attempted using the identifying information of another person without authority. A Covered Account means: 1. An account that a financial institution or creditor offers or maintains,primarily for personal, family, or household purposes that involves or is designed to permit multiple payments or transaction. Covered accounts include credit card accounts, utility accounts, checking accounts and savings accounts, and 2. Any other account that the financial institution or creditor offers or maintains for which there is a reasonable foreseeable risk to customers of to the safety and soundness of the financial institutions or creditor from identity theft, including financial, operational, compliance, reputation or litigation risks. "Identifying information" is defined under the Rule as "any name or number that may be used, alone or in conjunction with any other information, to identify a specific person," including: name, address, telephone number, social security number, date of birth, government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number, unique electronic identification number, computer's Internet Protocol address, or routing code. II IDENTIFICATION OF RED FLAGS. In order to identify relevant Red Flags, the Utility considers the types of accounts that it offers and maintains, the methods it provides to open its accounts, the methods it provides to access its accounts, and its previous experiences with Identity Theft. The Utility identifies the following red flags, in each of the listed categories: A. Suspicious Documents Red Flap-s 1. Identification document or card that appears to be forged, altered or inauthentic; 2. Identification document or card on which a person's photograph or physical description is not consistent with the person presenting the document; 3. Other document with information that is not consistent with existing customer information (such as if a person's signature on a check appears forged); and 4. Application for service that appears to have been altered or forged. B. Suspicious Personal Identifying Information Red Flags 1. Identifying information presented that is inconsistent with other information the customer provides (example: inconsistent birth dates); 2. Identifying information presented that is inconsistent with other sources of information(for instance, an address not matching an address on a credit report); 3. Identifying information presented that is the same as information shown on other applications that were found to be fraudulent; 4. Identifying information presented that is consistent with fraudulent activity(such as an invalid phone number or fictitious billing address); 5. Social security number presented that is the same as one given by another customer; b. An address or phone number presented that is the same as that of another person; 7. A person fails to provide complete personal identifying information on an application when reminded to do so (however, by law social security numbers must not be required); and 8. A person's identifying information is not consistent with the information that is on file for the customer. 2 C. Suspicious Account Activity or Unusual Use of Account Red Flats 1. Change of address for an account followed by a request to change the account holder's name; 2. Payments stop on an otherwise consistently up-to-date account; 3. Account used in a way that is not consistent with prior use(example: very high activity); 4. Mail sent to the account holder is repeatedly returned as undeliverable; 5. Notice to the Utility that a customer is not receiving mail sent by the Utility; 6. Notice to the Utility that an account has unauthorized activity; 7. Breach in the Utility's computer system security; and S. Unauthorized access to or use of customer account information. D. Alerts from Others Red Flay 1. Notice to the Utility from a customer, identity theft victim, law enforcement or other person that it has opened or is maintaining a fraudulent account for a person engaged in Identity Theft. III DETECTING RED FLAGS. A. New Accounts In order to detect any of the Red Flags identified above associated with the opening of a new account, Utility personnel will take the following steps to obtain and verify the identity of the person opening the account: Detect 1. Require certain identifying information such as name, date of birth, residential or business address,principal place of business for an entity, driver's license or other identification; 2. Verify the customer's identity(for instance, review a driver's license or other identification card); 3. Review documentation showing the existence of a business entity; and 4. Independently contact the customer. B. Existing Accounts In order to detect any of the Red Flags identified above for an existing account,Utility personnel will take the following steps to monitor transactions with an account: 3 Detect 1. Verify the identification of customers if they request information(in person, via telephone, via facsimile, via email); 2. Verify the validity of requests to change billing addresses; and 3. Verify changes in banking information given for billing and payment purposes. IV PREVENTING AND MITIGATING IDENTITY THEFT In the event Utility personnel detect any identified Red Flags, such personnel shall take one or more of the following steps, depending on the degree of risk posed by the Red Flag: A. Prevent and Mitigate I. Continue to monitor an account for evidence of Identity Theft; 2. Contact the customer; 3. Change any passwords or other security devices that permit access to accounts; 4. Not open a new account; 5. Close an existing account; 6. Reopen an account with a new number; 7. Notify the Program Administrator for determination of the appropriate step(s)to take; 8. Notify law enforcement; or 9. Determine that no response is warranted under the particular circumstances. B. Protect customer identifying information In order to further prevent the likelihood of Identity Theft occurring with respect to Utility accounts, the Utility will take the following steps with respect to its internal operating procedures to protect customer identifying information: I. Ensure that its website is secure or provide clear notice that the website is not secure; 2. Ensure complete and secure destruction of paper documents and computer files containing customer information; 3. Ensure that office computers are password protected and that computer screens lock after a set period of time; 4. Keep offices clear of papers containing customer information; 5. Request only the last 4 digits of social security numbers (if any); 6. Ensure computer virus protection is up to date; and 7. Require and keep only the kinds of customer information that are necessary for utility purposes. 4 V PROGRAM UPDATES The Financial Services Manager will serve as the Program Administrator. The Program Administrator will periodically review and update this Program to reflect changes in risks to customers and the soundness of the Utility from Identity Theft. In doing so, the Program Administrator will consider the Utility's experiences with Identity Theft situations, changes in Identity Theft methods, changes in Identity Theft detection and prevention methods, and changes in the Utility's business arrangements with other entities. After considering these factors, the Program Administrator will determine whether changes to the Program, including the listing of Red Flags, are warranted. If warranted, the Program Administrator will update the Program. VI. PROGRAM ADMINISTRATION. A. Oversight Responsibility for developing, implementing and updating this Program lies with the Identity Theft Committee for the City. The Committee is headed by the Program Administrator. The Utility Billing/Customer Service Manager shall also serve as a member of the committee. The Program Administrator may appoint other City staff to the committee as necessary. The Program Administrator will be responsible for the Program's administration, ensuring the appropriate training of staff, reviewing any staff reports regarding the detection of Red Flags and the steps for preventing and mitigating Identity Theft, determining which steps of prevention and mitigation should be taken in particular circumstances and considering and making periodic changes to the Program. B. Staff Training and Reports Personnel responsible for implementing the Program shall be trained either by or under the direction of the Program Administrator in the detection of Red Flags,and the responsive steps to be taken when a Red Flag is detected. Staff should prepare a report at least annually for the Program Administrator, including an evaluation of the effectiveness of the Program with respect to opening accounts, existing covered accounts, service provider arrangements, significant incidents involving identity theft and responses, and recommendations for changes to the Program. C. Service Provider Arrangements In the event the City engages a service provider to perform an activity in connection with one or more accounts, the City will take the following steps to ensure the service provider performs its activity in accordance with reasonable policies and procedures designed to detect,prevent, and mitigate the risk of Identity Theft. 1. Require, by contract, that service providers have such policies and procedures in place; and 2. Require,by contract, that service providers review the City's Program and report any Red Flags to City staff. 5