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2009.04.06 Council Meeting Packet
AGENDA PASCO CITY COUNCIL Regular Meeting 7:00 p.m. April 6,2009 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion(in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Councilmembers or the public, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. (a) Approval of Minutes: 1. Minutes of the Pasco City Council Meeting dated March 16, 2009. (b) Bills and Communications: (A detailed listing of claims is available for review in the Finance Manager's office.) 1. To approve General Claims in the amount of $1,440,128.46 ($176,916.36 in the form of Wire Transfer Nos, 5175, 5179 and 5184; and $1,263,212.10 consisting of Claim Warrants numbered 170775 through 171090). 2. To approve Payroll Claims in the amount of $1,835,419.45, Voucher Nos. 39380 through 39464; and EFT Deposit Nos. 30029010 through 30029550. (c) Appointments to Code Enforcement Board: (NO WRITTEN MATERIAL ON AGENDA) To reappoint Dwayne Speer to Position No. 1 and to appoint Daniel Gottschalk to Position No. 2 (both with the expiration date of 1/1/2011)to the Code Enforcement Board. *(d) Right-of-Way Dedication for the Intersection of Brown Street and 20 Avenue (MF #INF009-022): 1. Agenda Report from David 1. McDonald, City Planner dated March 26,2009. 2. Vicinity Map. 3. Right-of-Way Dedication Deed. To authorize the City Manager to sign and record the Dedication Deed necessary to establish street right-of-way for street improvements at the northwest corner of Brown Street and 26" Avenue. *(e) Resolution No. 3150, a Resolution fixing the time and date for a public hearing to consider the vacation of a portion of Colorado Avenue and a portion of Salt Lake Street. 1. Agenda Report from David I. McDonald, City Planner dated March 24, 2009. 2. Vicinity Map. 3. Proposed Resolution. 4. Vacation Petition. To approve Resolution No. 3150, setting 7:00 p.m., Monday, May 4, 2009 as the time and date to conduct a public hearing to consider the vacation of Colorado Avenue located between Blocks 16 and 17, Frey's Addition and the south 10 feet of Salt Lake Street adjacent to the same blocks. (RC) MOTION: I move to approve the Consent Agenda as read. 4. PROCLAMATIONS AND ACKNOWLEDGMENTS: (a) Presentation of Proclamation for"Municipal Clerks Week." Mayor Joyce Olson to present a Proclamation to Debbie Clark, City Clerk and Sandy Kenworthy, Deputy City Clerk. (b) (c) 5. VISITORS -OTHER THAN AGENDA ITEMS: (a) Pasco Public Facilities District Annual Report. (NO WRITTEN MATERIAL ON AGENDA) Presented by Bob Tippett, Pasco Public Facilities District Board President. (b) (c) Regular Meeting 2 April 6,2009 6. REPORTS FROM COMMITTEES AND/OR OFFICERS: (a) Verbal Reports from Councilmembers (b) (c) 7. PUBLIC HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO: (a) Final Assessment Roll for Local Improvement District (LID) No. 144 — Road 90 and Road 92 North of Sandifur Parkway: 1. Agenda Report from Doyle Heath, Utility Engineer dated March 31, 2009. 2. Final Assessment Map. 3. Assessment Method. CONDUCT A PUBLIC HEARING (b) Alley Vacation — A Portion of the East/West Alley in Block 5 Steffin's Amended Addition (MF#VAC09-004): 1. Agenda Report from David I. McDonald, City Planner dated March 24, 2009, 2. Vicinity Map. 3. Proposed Ordinance. CONDUCT A PUBLIC HEARING Ordinance No. , an Ordinance vacating a portion of the East/West Alley in Block 5, Steffin's Amended Addition. MOTION: I move to adopt Ordinance No. , vacating a portion of the East/West Alley in Block 5, Steffin's Amended Addition and, further, authorize publication by summary only. 8. ORDINANCES AND RESOLUTIONS NOT RELATING TO PUBLIC HEARINGS: (a) Ordinance No.—1 an Ordinance relating to the Waterworks Utility of the city, including the Sanitary Sewerage System and the System of Storm or Surface Water Sewers as a part thereof, adopting a system or plan of additions to and betterments and extensions of the Waterworks Utility of the city; providing for the issuance and sale of$ par value of water and sewer revenue bonds, 2009, for the purpose of obtaining the funds with which to pay the cost of carrying out such plan of additions and of improvements in Utility Local Improvement District No. 143, and to provide a reserve for and pay costs of issuance of such bonds; fixing the date, form, denomination, maturities, interest rates, terms and covenants of the bonds authorized herein; and providing for the sale and delivery of the bonds to Piper Jaffray & Co. of Seattle, Washington. 1. Agenda Report from Jim Chase, Finance Manager dated April 3, 2009. 2. Proposed Ordinance. 3. Preliminary Official Statement. 4. Standard&Poor's Credit Profile Summary. (Attachments in Council packets only; copies available for public review in the Finance Manager's office, the Pasco Library or on the city's webpage at htip://www.l?asco- wa.gov/generalinfo/citycouncilreports). MOTION: I move to adopt Ordinance No. , relating to the Waterworks Utility of the city, including the Sanitary Sewerage System and the System of Storm or Surface Water Sewers as a part thereof; adopting a system or plan of additions to and betterments and extensions of the Waterworks Utility of the city; providing for the issuance and sale of $9,955,000 (ESTIMATE) Par Value of Water and Sewer Revenue Bonds, 2009, for the purpose of carrying out such plan of additions and of improvements in Utility Local Improvement district No. 143; fixing the date, form, denomination, maturities, interest rates, terms and covenants of the bonds authorized herein; and providing for the sale and delivery of the bonds to Piper Jaffray &Co. of Seattle Washington. (b) Authorization to Purchase Personal Property with Local Option Capital Asset Lending (LOCAL)Program. 1. Agenda Report from Jim Chase, Finance Manager dated March 18, 2009. 2. Proposed Authorizing Ordinance. 3. Proposed Reimbursement Authorization Resolution. 4. Annex I —Copy of Notice of Intent to Utilize the LOCAL Program. 5. Annex 2—Copy of Sample Financing Contract. 6. Annex 3 —Certificate Designating Authorized Agency Representatives. Ordinance No. , an Ordinance authorizing the acquisition of personal property known as the Police Department Patrol Vehicle Computer Equipment and execution of a financing contract and related documentation relating to the acquisition of said personal property. MOTION: I move to adopt Ordinance No. , authorizing the acquisition of personal property known as the Police Department Patrol Vehicle Computer Equipment and a financing contract with the State of Washington Local Option Capital Asset Lending (LOCAL) Program and, further, authorize publication by summary only. Regular Meeting 3 April 6,2009 -AND- Resolution No. , a Resolution authorizing reimbursement for the purchase of personal property known as the Police Department Patrol Vehicle Computer Equipment through a financing contract. MOTION: I move to approve Resolution No. authorizing reimbursement for the purchase of the personal property known as the Police Department Patrol Vehicle Computer Equipment through a financing contract. (c) Resolution No. a Resolution approving the Neighborhood Stabilization Program (NSP)Plan Guidelines. 1. Agenda Report from Angie Pitman,Block Grant Administrator dated March 31,2009. 2. Resolution Approving Neighborhood Stabilization Program(NSP)Plan Guidelines. 3. Summary of Neighborhood Stabilization Guidelines. 4. Neighborhood Stabilization Program (NSP) Plan Guidelines (Council packets only; copy available for public review in the Planning office, the Pasco Library or on the city's webpage at http://www.pasco-wa.gov/generalinfo/citycouncilroorts). MOTION: I move to approve Resolution No. , approving Neighborhood Stabilization Program (NSP) Plan Guidelines. Q*(d) Resolution No. , a Resolution accepting the Planning Commission's recommendation and approving a Special Permit for the location of the Children's Daycare/Preschool at the 6200 Block of Burden Boulevard. 1. Agenda Report from Shane O'Neill, Planner I dated March 31, 2009. 2. Report to Planning Commission. 3. Planning Commission Minutes dated 2/19109 and 3/19109. 4. Proposed Resolution. MOTION: I move to approve Resolution No. , approving the Special Permit for the location of the Jigsaw Daycare/Preschool in the 6200 Block of Burden Boulevard as recommended by the Planning Commission. *(e) Resolution No. , a Resolution relating to disposition of firearms. 1. Agenda Report from Gary Crutchfield, City Manager dated April 1,2009. 2. Memorandum to City Manager from Police Chief dated 3/2/09. 3. Proposed Resolution. MOTION: I move to approve Resolution No. , relating to disposition of firearms. 9. UNFINISHED BUSINESS: (none) 10. NEW BUSINESS: (none) 11. MISCELLANEOUS DISCUSSION: (a) (b) (c) 12. EXECUTIVE SESSION: (a) (b) (c) 13. ADJOURNMENT. (RC) Roll Call Vote Required * Item not previously discussed MF# "Master File#...... Q Quasi-Judicial Matter Regular Meeting 4 April 6,2009 REMINDERS: 1. 1:30 p.m., Monday, April 6, KGH — Emergency Medical Service Board Meeting. (COUNCILMEMBER TOM LARSEN,Rep.; AL YENNEY,Alt.) 2. 6:30 p.m., Wednesday, April 8, Richland Council Chambers — Land Use Liability Training (MAYOR JOYCE OLSON and COUNCILMEMBER MATT WATKINS) 3. 7:00 p.m., Wednesday, April S, City Hall, Conference Room #1 — Animal Shelter Committee Meeting. (COUNCILMEMBERS BOB HOFFMANN and AL YENNEY) 4. 7:00 a.m., Thursday, April 9 - BFCG Tri-Mats Policy Advisory Committee Meeting. (COUNCILMEMBER BOB HOFFMANN,Rep.; TOM LARSEN, Alt.) 5. 7:00 p.m., Thursday, April 9, Transit Facility — Ben-Franklin Transit Board Meeting. (COUNCILMEMBER MATT WATKINS, Rep.; MIKE GARRISON, Alt.) 6. 9:30 a.m., Friday,April 10, KONA—KONA Mayor's Report. (MAYOR JOYCE OLSON) MINUTES REGULAR MEETING PASCO CITY COUNCIL MARCH 16, 2009 CALL TO ORDER: The meeting was called to order at 7:00 p.m. by Joyce Olson, Mayor. ROLL CALL: Councilmembers present: Rebecca Francik, Michael Garrison, Robert Hoffmann, Tom Larsen, Joyce Olson, Matt Watkins and Al Yenney. Staff present: Gary Crutchfield, City Manager; Leland B. Kerr, City Attorney; Stan Strebel, Administrative & Community Services Director; Rick White, Community & Economic Development Director; Bob Alberts, Public Works Director; Denis Austin, Police Chief; Bob Gear, Fire Chief; Jim Chase, Financial Services Manager and Paul Whitemarsh, Recreation Services Manager. The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA: (a) Approval of Minutes: Minutes of the Pasco City Council Meeting dated March 2, 2009. Removed from Consent Agenda and moved to Item 10(c). (b) Bills and Communications: To approve General Claims in the amount of$1,132,022.83 ($66,755.12 in the form of Wire Transfer Nos. 5170 and 5173; and $1,065,267.71 consisting of Claim Warrants numbered 170544 through 170774). To approve bad debt write-offs for utility billing, ambulance, cemetery, general accounts, miscellaneous accounts, and Municipal Court(non-criminal, criminal, and parking) accounts receivable in the total amount of$277,774.90 and, of that amount, authorize 222,717.59 be turned over for collection. (c) TPA Budget Amendment: To approve the transfer of$68,800 from the reserve account within the TPA budget to be used for promotional projects expenditures. (d) Resolution No. 3144, a Resolution approving an Identity Theft Prevention Program to meet the requirements of the Fair and Accurate Credit Transactions Act of 2003. To approve Resolution No. 3144, adopting an Identity Theft Prevention Program to comply with the Fair and Accurate Credit Transactions Act of 2003. (e) Resolution No. 3145, a Resolution entering into an Interlocal Agreement with the Port of Pasco. To approve Resolution No. 3145, approving 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. (f) Resolution No. 3146, a Resolution fixing the time and date for a public hearing to consider the vacation of a waterline easement and access easement in Section 11,Township 9 North, Range 29 East. To approve Resolution No. 3146, setting 7:00 p.m., Monday, April 20, 2009 as the time and date to conduct a public hearing to consider vacating a utility and access easement through Section 11, of Township 9 North, Range 29 East. MOTION: Mr. Watkins moved to approve the Consent Agenda as amended. Mr. Garrison seconded. Motion carried by unanimous Roll Call vote. 1 3(a).1 MINUTES REGULAR MEETING PASCO CITY COUNCIL MARCH 16, 2009 PROCLAMATIONS AND ACKNOWLEDGMENTS: Mayor Joyce Olson presented a Proclamation to Paul Whitemarsh, Recreation Services Manager, proclaiming March 20, 2009 "Paul Whitemarsh Day" in honor of his 37-year career with the City of Pasco. REPORTS FROM COMMITTEES AND/OR OFFICERS: Mr. Garrison reported on the TRIDEC Board of Directors meeting. Messrs. Yenney, Larsen and Hoffmann toured the Franklin Co. Emergency Dispatch Center. Mr. Hoffmann and Mr. Yenney toured the Animal Control Shelter. Mr. Hoffman toured the TRAC facility. Mayor Olson reported on the Franklin Co. Emergency Management EOC Activation drill. PUBLIC HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO: Critical Area Ordinance(MF#CA08-003): MAYOR OLSON DECLARED THE PUBLIC HEARING OPEN TO CONSIDER THE PROPOSED ORDINANCE. FOLLOWING THREE CALLS FOR COMMENTS,EITHER FOR OR AGAINST, AND THERE BEING NONE,MAYOR OLSON DECLARED THE PUBLIC HEARING CLOSED. Ordinance No. 3911, an Ordinance relating to Critical Areas repealing PMC Chapter 23.11 and establishing a new PMC Title 28 for regulating Critical Areas. MOTION: Mr. Watkins moved to adopt Ordinance No. 3911, 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. Mr. Garrison seconded. Motion carried unanimously. ORDINANCES AND RESOLUTIONS NOT RELATING TO PUBLIC HEARINGS: Ordinance No. 3912, 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. Council and staff discussed the details of the proposed use tax. MOTION: Mr. Watkins moved to adopt Ordinance No. 3912, imposing a Use Tax on Natural Gas used within city limits and, further, authorize publication by summary only. Mr. Garrison seconded. Motion carried unanimously. Ordinance No. 3913, an Ordinance amending Chapter 3.07 titled Fee Summary, authorizing an increase in the monthly Ambulance Utility Fee. Council and Staff discussed the proposed fee increase. Mr. Doug Tompkins, 1902 N. 7th Ave., inquired about the amount of the shortfall from Medicare payments for ambulance transport. 2 MINUTES REGULAR MEETING PASCO CITY COUNCIL MARCH 16, 2009 MOTION: Mr. Watkins moved to adopt Ordinance No. 3913, authorizing an increase in the monthly Ambulance Utility Fee and, further, authorize publication by summary only. Ms. Francik seconded. Motion carried 5-2. No— Larsen, Hoffrnann. Resolution No. 3147, a Resolution authorizing the use of the Pasco Softball Complex for the 2009 Pasco High All Class Reunion, including limited liquor use. MOTION: Mr. Watkins moved to approve Resolution No. 3147, authorizing the use of the Pasco Softball Complex for the 2009 Pasco All Class Reunion. Mr. Garrison seconded. Motion carried unanimously. Resolution No. 3148, a Resolution approving the Neighborhood Stabilization Program(NSP) Work Plan Allocation. MOTION: Mr. Watkins moved to approve Resolution No. 3148, approving the city's Neighborhood Stabilization Program (NSP) Work Plan Allocation. Ms. Francik seconded. Motion carried unanimously. Resolution No. 3149, a Resolution authorizing call for bids for purchase of city property at 26th Avenue and Brown Street. MOTION: Mr. Watkins moved to approve Resolution No. 3149, authorizing call for bids for purchase of city property at 26th Avenue and Brown Street. Mr. Garrison seconded. Motion carried unanimously. MOTION: Mr. Watkins moved to set the minimum bid at 528,000. Mr. Garrison seconded. Motion carried unanimously. NEW BUSINESS: Signal Pole Equipment: MOTION: Mr. Watkins moved to approve the purchase of goods and services from Sierra Electric for the signal pole equipment for Argent and Road 84 and Argent and Road 80, in the amount of$54,447.79, including shipping. Mr. Garrison seconded. Motion carried unanimously. 2009 Street Overlays, Project No. 09-3-03: MOTION: Mr. Watkins moved to award the low bid for the 2009 Street Overlays, Project No. 09-3-03 to Granite Northwest, Inc. (dba Transtate Asphalt) in the amount of $575,760.35, including Alternate Area#3 and, further, authorize the Mayor to sign the contract documents. Ms. Francik seconded. Motion carried by unanimous Roll Call vote. Minutes of the Pasco City Council Meeting dated March 2, 2009. Mr. Larsen questioned the accuracy of a motion. MOTION: Mr. Watkins moved to approve the minutes of the Pasco City Council Meeting dated March 2, 2009. Ms. Francik seconded. Motion carried unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned at 7:57 p.m. APPROVED: ATTEST: Joyce Olson, Mayor Sandy Kenworthy, Deputy City Clerk PASSED and APPROVED this 6th day of April, 2009. 3 CITY OF PASCO Council Meeting of: April 6, 2009 Accounts Payable Approver! The City Council City of Pasco, Franklin County,Washington We,the undersi ed do her fy under penalty of perjury that the materials have been furnished,the services rend ed the 1 or perfor ed as described herein and that the claim is a just, due and unpaid obligation agai he ci and that w are authorized to authenticate and c said�clai .. Gary Crutc field, City M ger James W. Ch e, Finance Manager We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County,Washington, do hereby certify that the merchandise or services hereinafter specified have been received;that Wire Transfer No.s 5175, 5179 and 5184 in the amount of$176,916.36, have been authorized;that Check No.s 170775 through 171090 are approved for payment in the amount of$1,263,212.10, for a combined total of$1,440,128.46 on this 6th day of April,2009. Councilmember Councilmember SUMMARY OF CLAIMSlWIRE TRANSFERS BY FUND: GENERAL FUND: Legislative 2,567.77 Judicial 9,407.11 Executive 3,985.23 Police 1 98,1 02.47 Fire 20,131.01 Administration&Community Services 111,985.66 Community Development 15,47147 Engineering 2,537,04 Non-Departmental 150,608.64 Library 102,618.88 TOTAL GENERAL FUND: 617,417.28 STREET 43,611.39 C. D. BLOCK GRANT 2,614.39 KING COMMUNITY CENTER 4,204.21 AMBULANCE SERVICE 12,070.67 CEMETERY 7,103.14 ATHLETIC PROGRAMS 4,201.17 SENIOR CENTER 8,38166 MULTI MODAL FACILITY 3,455.25 RIVERSHORE TRAIL& MARINA MAIN 221.54 SPECIAL ASSESSMNT LODGING 11,529.83 REVOLVING ABATEMENT 304.73 PARK DEVELOPMENT 950,00 TRAC DEVEL&OPERATING 110,082.50 STADIUM/CONVENTION CENTER 7,443.06 METRO DRUG TASK FORCE 10,017.46 METRO DRUG FORFEITURE FUND 2,235.72 GENERAL CONSTRUCTION 42,329.35 WATER/SEWER 206,156.81 EQUIPMENT RENTAL-OPERATING 38,584.03 EQUIPMENT RENTAL-REPLACEMENT 17,273.85 MEDICAL/DENTAL INSURANCE 176,916.36 CENTRAL STORES 194.36 PUBLIC FACILITIES DIST 19,415.36 PAYROLL CLEARING 46,615.74 LID CONSTRUCTION 228.00 TRI CITY ANIMAL CONTROL 46,568.60 GRAND TOTAL ALL FUNDS: $ 1,440,128.46 3(b).1 CITY OF PASCO Council Meeting of: Payroll Approval April 6, 2009 The City Council City of Pasco Franklin County, Washington The foil ing is a s of payroll claims against the City of Pasco for the month of March 2009 hare esented erewith for your review and approval.(4442- Gar D. ru eld, City Manager Jarnes W. C se, Financial Services Manager We, the undersigned City Council members of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify that the services represented by the below expenditures have been received and that payroll voucher No's. 39380 through 39464 and EFT deposit No's. 30029010 through 30029550 and City contributions in the aggregate amount of$1,835,419.45 are approved for payment on this 6th day of April 2009. Council member Council member SUMMARY OF PAYROLL BY FUND GENERAL FUND: Legislative $ 6,770.21 Judicial 69,959.28 Executive 48,557.14 Police 533,129.98 Fire 265,531.71 Administrative& Community Services 243,809.09 Community Development 76,477.88 Engineering 74,504.82 TOTAL GENERAL FUND 1,318,740.11 CITY STREET 34,870.28 BLOCK GRANT 7,287.07 MARTIN LUTHER KING CENTER 6,352.28 AMBULANCE SERVICE FUND 116,990.61 CEMETERY 12,185.04 ATHLETIC FUND 3,001.96 SENIOR CENTER 12,905.52 STADIUM OPERATIONS 0.00 MULTI-MODAL FACILITY 0.00 BOAT BASIN 0.00 REVOLVING ABATEMENT FUND 0.00 TASK FORCE 8,814.15 WATER/SEWER 288,998.40 EQUIPMENT RENTAL-OPERATING 25,274.03 GRAND TOTAL ALL FUNDS $ 1,835,419.45 Payroll Summary Net Payroll 860,834.09 Employee Deductions 538,441.68 Gross Payroll 1,399,275.77 City of Pasco Contributions 436,143.68 Total Payroll $ 1,835,419,45 3(b).2 AGENDA REPORT NO. FOR: City Council March 26, 2009 TO: Gary Crutchfiel y Manager Regular Mtg.: 4/6/09 Rick White, Dir or 'IA Community& Ec mic Development FROM: David 1. McDonald, City Planner SUBJECT: Right-of-Way Dedication for the Intersection of Brown Street and 26'h Avenue (MF# INF009-022) I. REFERENCE(S): 1. Vicinity Map 2. Right-of-Way Dedication Deed II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS: 416 MOTION: I move to authorize the City Manager to sign and record the dedication deed necessary to establish street right-of-way for street improvements at the northwest corner of Brown Street and 26th Avenue. III. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A) In February of 2007 the City acquired the lot at the northwest corner of Brown Street and 26`h Avenue. The lot was purchased as part of a project to improve access to businesses located on 28th Avenue. B) The intersection improvements at Brown Street and 26th Avenue were completed in 2008. The balance of the lot in question is not needed for any public purpose and can be surplused and sold. C) Prior to selling the lot the portion of the lot that is now occupied by street improvements needs to be incorporated into the adjoining public right-of-way. D) When recorded the attached deed will effectuate the necessary street dedication. 3(d) Montt I 0 oil foe S Ala w w. r _; .: i'' •.C�.:. ��. �''. �ri ..�I� � :.tom+ • Efv.� *,� y � r i F,. � c - r� r 4 6 . ' � •tie.'. ". '� :>K'i .Neer, etp., - ir�•' �'r � .r �:• a.'. - � � ! . After Recording,Return To: City of Pasco, Washington Attn: City Planner 525 North 3rd Pasco, WA 99301 DEDICATION DEED Tax Parcel No. 119-342-211 THE GRANTOR(S), The City of Pasco, by donation pursuant to RCW 35A.79.010,dedicates,conveys and quit claims to the GRANTEE,THE CITY OF PASCO,a Municipal Corporation of the State of Washington,for the public use,as a public right-of-way, all interest in the land described as follows: That portion of lot 12, block 1 as it appears on the Plat of Sunny Acres, as recorded in volume B of plats,page 73, records of Franklin County, Washington more particularly described as follows: Beginning at the Southeast corner of said lot 12, also being the true point of beginning; thence northerly, along the east line of said lot 12,North 00040'12" East, 57.29 feet to the beginning of a 94.50 feet radius non tangent curve which has a radius point bearing North 69°41'9" West; thence southwesterly along the arc of said curve, through a central angle of 50°45'00", 83.70 feet to its intersection with the south line of said lot 12; thence easterly, along said south line, South 89°1730" East, 57.29 feet to the true point of beginning. Containing 1144 square feet more or less. Dedication Deed- I Said dedication appears on exhibit `A' attached hereto. DATED this day of , 2009. GRANTOR(S) Owner(s) STATE OF WASHINGTON } ss. County of Franklin } On this day of ,2009, before me,the undersigned,duly commissioned and sworn,personally appeared to me known to be the individual(s)described above and who executed the within and foregoing instrument as an agent of the owner(s)of record,and acknowledged to me that he/she/they signed the same as his/her/their free and voluntary act and deed,for the uses and purposes therein mentioned,and on oath stated that he/she/they is/are authorized to execute the said instrument. GIVEN under by hand and official seal this day of 2009. Print Name: NOTARY PUBLIC in and for the State of Washington Residing at: My Commission Expires: Dedication Deed-2 EXHIBIT 'A' �I N O Q N Q Q 30' ri W L=83.70' R=94.50' N A=50'45'00° N NEW R.O.W. DEDICATED N °o z 57.29' TPOB a � M NEW STREET J CENTERLINE W. BROWN STREET S $9'1 7'30" E O OLD STREET CENTERLINE M 1 N Q AGENDA REPORT FOR: City Council March 24, 2009 TO: Gary Crutchfield, C anager Regular Mtg.: 4/6/09 Rick White, eo4j Community & Economic Development Director FROM: David I. McDonald, City Planner SUBJECT: STREET VACATION: A portion of Colorado Avenue and Salt Lake Street (MF# VAC09-006) L REFERENCE(S): 1. Vicinity Map 2. Proposed Resolution 3. Vacation Petition II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 4/6: MOTION: I move to approve Resolution No. J(Q, setting 7:00 p.m., Monday, May 4, 2009, as the time and date to conduct a public hearing to consider the vacation of Colorado Avenue located between Blocks 16 and 17, Freys Addition and the south 10 feet of Salt Lake Street adjacent to the same blocks. I1I. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. Property owners in the Freys Addition have petitioned to vacate Colorado Avenue located between Blocks 16 and 17 of the Freys Addition together with the south 10 feet of Salt Lake Street adjacent to the same blocks. The vacation is being requested to facilitate future development of said blocks for commercial purposes. B. The petition requires the City Council to fix a public hearing to consider the vacation request. The earliest regular City Council meeting available for a public hearing, which provides the statutory 20-day hearing notice, is May 4, 2009. 3(e) p • r • D` 9W 4 . •. y z \ ct ct 4-j CL CA d G. L a. 44 xl� C RESOLUTION NO. A RESOLUTION FIXING THE TIME AND DATE FOR A PUBLIC HEARING TO CONSIDER THE VACATION OF A PORTION OF COLORADO AVENUE AND A PORTION OF SALT LAKE STREET. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may vacate rights-of-way; and WHEREAS, R.C.W. 35.79 requires public hearings on vacations to be fixed by Resolution, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: That a public hearing to consider vacating Colorado Avenue between Blocks 16 and 17, Freys Addition and the south 10 feet of Salt Lake Street adjacent to the said blocks, will be held before the City Council of the City of Pasco in the Council Chambers at, 525 North 3rd Avenue, Pasco, Washington, at the hour of 7:00 p.m., on May 4, 2009. That the City Clerk of the City of Pasco give notice of said public hearing as required by law. Passed by the City Council of the City of Pasco this 6th day of April, 2009. Joyce Olson Mayor ATTEST: APPROVED AS TO FORM: Sandy L. Kenworthy Leland B. Kerr Deputy City Clerk City Attorney FEE $200 � A �1 ► CITY OF PASCO STREET/ALLEY VACATION PETITION MASTER FILE # Ike 0 4 -00 6 DATE SUBMITTED: I, we the undersigned, owners of two-thirds of the privately owned abutting property hereby petition the City Council of the City of Pasco to vacate the fol owing describ s reet/ ley ri is-of-way: eA- c 1 , � APPLICANT: 7vyr OPERTY,QWN D (Legal Description) Print Name: G 1 e A'L�C[ S 0 c Sign Name:-IX ')b -+o Address: oX0 n yx S+ sco wiq q i Phone # Date --1.� r)cl Print Name: l�-c��t'f* G l iG 7. tv C� Uac Sign Name: <� ----.. S Date - Print Name: 4.r_A_)z6t t FAe"'-1S 4DD zo i S 16 Td 6- 6,�Idz a 4L 4u.-ey �U;r Sign Name: 5;71<A-- Date 3-1-z-oc' AGENDA REPORT NO. 15 FOR: City Council March 31, 2009 TO: Gary Crutchfield, C' ager Regular Mtg.: 4/6/09 Robert J. Albert ,( orks Director FROM: Doyle L Heath, Utility EnginezW SUBJECT: Public Hearing on the Final Assessment Roll for Local Improvement District (LID) No. 144—Road 90 and Road 92 north of Sandifur Parkway. I. REFERENCE(S): I. Final Assessment Map 2. Assessment Method II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS: 04/06: Conduct a public hearing to consider the Final Assessment Roll for LID No. 144. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) LID 144 was formed by Ordinance No. 3864 at the May 19, 2008 Regular Council Meeting. Resolution No. 3132 was approved on January 20, 2009 setting the Public Hearing date on March 2, 2009. Resolution No. 3142 was approved on March 2, 2009 rescheduling the Public Hearing date for April 6, 2009. B) The project included the construction of Road 90 and Road 92 north of Sandifur Parkway approximately 1,300 feet. There are 17 property owners in the LID boundary. The attached map shows the Preliminary Assessment and the Final Assessment for each property. C) The Contractor has completed all of the construction provided for in the LID. Resolution No. 3130 accepted the work performed by Scott's Excavating Tri- Cities, LLC on January 20, 2009. V. DISCUSSION: A) The Public Hearing is to present and discuss the Final Assessment Roll of the LID. The final cost is approximately 12% less than the Preliminary Assessment Roll. All the property owners received their respective Final Assessment Roll cost by certified mail. See the Assessment Method map. B) Following the Public Hearing, a required ten day protest period begins. Staff will present, on April 20, 2009, an Ordinance confirming the Final Assessment Roll for Council action along any written protests that may have been received. 7(a) - N1 N31SNIAIS3M v N11 Ld JAMAW MW ow NJ- J-j cc LL- CO 04 Ls 30GA2 ad 06 OVON 9 r: C04 E41ES it LO 6 sy, 0) In Es A ro 14, j LO LID 144—Road 90 & Road 92 PUBLIC WORKS DEPARTMENT — ENGINEERING DIVISION U) x O O co O C), �ct o m 0 CD Co 4-4 O `*-+ +' x � �! 0 0 beg: � CO o 0 Q) C O ° I � C � w a� c CO 4-) ° c� 41 a �' O rn 4--I U� v O o cc G Q) cd v1 O Y) N w w ) 0 1 p>?o8 Q LID 144--Road 90 & Road 92 PROJECT NO.: — N of Sandifur Pkwy PUBLIC WORKS DEPARTMENT — ENGINEERING DIVISION oe3m, CITY OF PASCO or 1 M IXN SU�.E 1�# M/A o� aEOC " WE 3/31/09 APFF— IW MAN"@OINMY iWN047 M cm*Xc- •r AGENDA REPORT FOR: City Council March 24, 2009 TO: Gary Crutchfie Manager Regular Mtg.: 4/6/09 Rick White, Community & Economic Development Director FROM: David I. McDonald, City Planner SUBJECT: ALLEY VACATION: A portion of the East/West alley in Block 5 Steffin's Amended Addition (MF#VAC09-004 I. REFERENCE(S): 1. Vicinity Map 2. Proposed Ordinance II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS: Conduct Public Hearing: 416: MOTION: I move to adopt Ordinance No. an Ordinance vacating a portion of the east/west alley in Block 5, Steffin's Amended Addition. III. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. The property owner of Lots 12 and 13 in the Steffin's Amended Addition petitioned to vacate the alley located between said lots. The vacation was requested to facilitate future development of said lots by Northwest Agricultural Products for commercial/industrial purposes. B. The City Council set April 6, 2009 as the date to consider the vacation. V. DISCUSSION: A. The proposed alley vacation has been reviewed by the City Engineering Department and the utility providers. B. The Franklin County PUD and Qwest have requested an easement be retained across the proposed vacation area. 7(b) S E. } IMW AW K KAF ALDW * _ Ali o ! ; � r.•,• � 'tom-�;i 'f•- -� 4+� sq'�y:x „�s. r '�F^` ,�� - �' j.': • r` r,. .ws,k ,� "r.7k:..Y�"ic; •S Sti 1 t ';y4 +p'.,:'., "`�iaR J k y •� :� t '� • �. SRI: �.Y ��,'� � S ti �j WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3`d Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE VACATING A PORTION OF THE EAST/WEST ALLEY IN BLOCK 5, STEFFIN'S AMENDED ADDITION. WHEREAS, a qualified petition has been submitted to the City Council of the City of Pasco requesting vacation of certain public rights-of-way within the City of Pasco; and WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may vacate rights-of-way; and WHEREAS, all steps and procedures required by law to vacate said right-of-way have been duty taken and performed; NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That the east/west alley in Block 5, Steffin's Amended Addition between Lots 12 and 13, as depicted in Exhibit"1"be and the same is hereby vacated. Section 2. That the City shall retain an easement and the right to exercise or grant easements with respect to vacated alley described in Section 1 above for the construction, repair and maintenance of utilities and services. Section 3. That a certified copy of this ordinance be recorded by the City Clerk of the City of Pasco in and with the office of the Auditor of Franklin County, Washington. Section 4. This ordinance shall take full force and effect five(5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, this 6"' day of April, 2009. Joyce Olson Mayor ATTEST: APPROVED AS TO FORM: Sandy L_ Kenworthy Leland B. Kerr Deputy City Clerk City Attorney "' � end AVS Cl N 11 cn -- l Q � > end G NVIi IN 44 v AGENDA REPORT FOR: City Council April 3, 2009 TO: Gary Crutchfield anager Regular Mtg.: 416109 Stan Strebel, A s tive and Community Services Director FROM: Jim Chase, Finance Manager SUBJECT: 2009 WATER AND SEWER UTILITY REVENUE BONDS. I. REFERENCEM: 1. Proposed Ordinance 2. Preliminary Official Statement 3. Standard & Poor's Credit Profile Summary (Attachments in Council packets only, copies available for public review in the Finance Manager's office, the Pasco Library or on the city's webpage at httT)://www.t)asco- wa.p-ov/generalinfo/citycouncilreports . II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATION: 4/6 MOTION: I move to adopt Ordinance No. , an Ordinance relating to the Waterworks Utility of the City, including the Sanitary Sewerage System and the System of Storm or Surface Water Sewers as a part thereof; adopting a system or plan of additions to and betterments and extensions of the Waterworks Utility of the City; Providing for the issuance and sale of$9,955,000 (ESTIMATE) Par Value of Water and Sewer Revenue Bonds, 2009., for the purpose of carrying out such plan of additions and of improvements in Utility Local Improvement District No. 143; fixing the Date, Form, Denomination, Maturities, Interest Rates, Terms and Covenants of the Bonds authorized herein; and providing for the Sale and Delivery of the Bonds to Piper Jaffray, & Co. of Seattle,Washington. III. FISCAL IMPACT: Anticipated debt service requirements will be scheduled with other debt service requirements of the water and sewer utilities. Annual payments of the bonds for the new West Side Water Treatment Plant will vary little in total amount from year to year and are scheduled to be approximately $695,000. It is structured to provide level annual repayment (principal payments increase as interest payments decrease each year) until the bonds are repaid. The financing for Utility Local Improvement District #143 (ULID), (sewer installation in the Road 110 area) is structured differently. The principal repayment amount is constant each year ($60,000) and interest declines as principal is retired. Annual debt service for the treatment plant portion is based on estimated interest rates from 3.25% to 5.25% and for the ULID portion, 3.25% to 4.5%, depending on maturity. IV. HISTORY AND FACTS BRIEF: These bonds will finance the construction of a new West Side Water Treatment Plant, which was included in the 2009 - 2014 Capital Improvements Plan at $9,000,000. These bonds will be repaid over a 20 year period. The remaining amount will provide financing to the property owners of ULID #143 over a period of 15 years. Staff feels it is cost effective to combine the two financings into one. 8(a) The interest rate that was estimated in the ULID ordinance, and the amount that is currently being charged to the property owners for annual repayment, is 6%. This financing should enable that interest charge to be lowered to around 4.5%. VI. DISCUSSION: Staff recommends adoption of the proposed ordinance. VII. OTHER FACTS: Aided by the city's underwriter, staff sought a new credit rating from Standard & Poor (S&P); following a lengthily conference call to discuss the utility's financial profile, S&P issued its new rating of AA- (see reference#3) Staff will also review if purchasing bond insurance is cost effective. Purchasing bond insurance guarantees a rating of AAA and commands the lowest interest rates. The bonds will be sold on April 6. The completed bond ordinance will be available by the start of that council meeting. Jane Towery, Managing Director of Public Finance with Piper Jaffray, Inc. will be present at the April 6 meeting to report on the sales of the bonds. STANDARD RATINGsDIRECT OO April 2,2009 Summary: Pasco, Washington; Water/Sewer Primary Credit Analyst: Sussan Carson,New York(1)212-430-2014;sussan_corson@standardandpoors.com Secondary Credit Analyst: Chris Morgan,San Francisco(1)415-371-5032;chris_morgan@standardandpoors.com Table Of Contents Rationale Outlook www.standardandpoors.com/ratingsdiFect 1 Standard&Poor's.All rights reserved.No reprint or dissemination without S&P's permission.See Terms of 7 2615 1 X0187765 Use/Disclaimer on the last page. Summary: Pasco, Washington; water/Sewer US$9.955 mil wtr&swr rev bnds set 2009 due 05/01/2029 Long Term Rating AA-/Stable New Rationale Standard & Poor's Ratings Services assigned its 'AA-' long-term rating and stable outlook,to Pasco,Wash.'s water and sewer revenue bonds. The rating reflects our opinion of the waterworks utility system's: • Strong historical senior-lien debt service coverage(DSC),which has exceeded 4x in the past few years; • Strong liquidity,with 287 days' cash at the end of audited fiscal 2007 and a management target of six months' operating cash in the system; and • Stable service economy, which serves as a processing center for a surrounding agricultural area. These strengths are somewhat offset by what we view as moderate concentration in the system's largest customers, primarily food processors, and below-average income indicators. The bonds are secured by net revenues of Pasco's waterworks utility system,which includes the water, sewer, stormwater,process water reuse, and irrigation utilities.The bonds are also secured by utility local improvement district assessments,which are used to pay parity assessment bonds also backed by a lien on system revenues.The system will have$26.6 million of total parity debt outstanding after this sale, including all assessment and non-assessment bonds. Prepayments on the assessment bonds are used to redeem bonds. The utility system provides service to the residents of Pasco,which encompasses 34 square miles and is located in the tri-cities region in central Washington. The region's economy is largely agricultural, although it is also influenced by the federal government's Hanford Nuclear Reservation,which lies along the Columbia River. In our opinion,the city's household effective buying income(EBI) and per capita EBI levels are adequate, albeit below average, at 88% and 66% of the nation.The city's unemployment rate in 2007 was what we consider above average at 6.5%; according to the Bureau of Labor Statistics,as of November 2008 this rate has increased to 7.1% Water (15,567) and sewer (13,312) customers have increased between 5%-6% per year,on average, from fiscals 2005-2008,although growth slowed to about 2% in fiscal 2008.Although one-time capital expansion charges have declined as development has slowed in the city, system officials indicate residential construction continues and home prices in the region have fallen only 1% since 2008. System delinquencies have also remained low in our view at 0.5% of total collections. The utility's largest customers, including the system's food processing customers of the process water reuse utility, represent about 20% of the system charges; the largest customer is Pasco Processing LLC,a food processor that accounts for 5% of total water and sewer charges.The system's water supply comes from the Columbia River, and the system has a current permit from the state department of ecology to withdraw up to 12,000 acre feet, which officials indicate is sufficient for the next 10 years. System officials could apply to the Standard &Poor's Ratings0irect I April 2,2009 2 Standard&Poor's.All rights reserved.No reprint or dissemination without S&P's permission.See Terms of Use/Disclaimer on the last page. 71-6?513CC1,87755 Summary: Pasco, Washington, WaterlSewer department of ecology to raise the maximum permitted draws from the river in the future.The system's peak flow of 21 million gallons per day (mgd)in the summer is 87.5% of the water treatment plant's maximum capacity of 24 mgd. Bond proceeds will go toward the construction of a second water treatment plant with a design for an ultimate 18 mgd capacity,with an initial 6 mgd capacity beginning in April 2010.Sewer treatment capacity is adequate,with an average 4.5 mgd capacity and an 8.5 mgd peak capacity that handles an average daily flow of about 3.3mgd.The system's process water reuse system reuses wastewater from the food processors for irrigation purposes;the system actively monitors this water and officials indicate there are currently no environmental concerns. The financial performance of Pasco's waterworks utility system has been strong in our opinion,with net system revenues providing 4.3x annual senior-lien DSC,including assessment and non-assessment bonds in audited fiscal 2007;excluding one-time capacity expansion charges,coverage is still what we consider strong at 3.6x.Including all senior and subordinate debt,including the system's state revolving fund and public works trust fund loans,we believe annual DSC remains strong at 2.4x. Based on unaudited numbers,officials estimate annual senior-lien and total DSC of 3.5x and 2.0x,respectively,in fiscal 2008.In fiscal 2009,current estimates for fiscal year-end annual senior-lien and total DSC remain strong in our view,at 4.1x and 2.2x,respectively.Although bond provisions include a covenant to maintain 1.25x annual DSC on non-assessment senior-lien debt alone,management targets coverage levels of 3x or higher.We also consider the system's liquidity strong,with 287 days'cash at fiscal year-end 2007 and management targets six months'of operating cash in the system. Combined water and sewer rates for a single-family residence within the city are$43.43 per 7,500 gallons per month,which we consider manageable,and represent only 1.4% of the city's median household EBI.We view water rates as below average and sewer rates as conforming to average rates of other systems in the area.The system last reduced its sewer rates in 2007 by 10% based on continued historical growth and relatively stable operating costs. System officials expect to implement a modest water rate increase by year-end 2009 to maintain strong levels of liquidity in the system.The system does rate studies every few years and last commissioned a rate study that was completed in July 2008 that did not include the anticipated water treatment plant expansion and did not recommend any additional rate increases for the water and sewer systems.Pasco's current capital plan for the combined waterworks utility totals$25 million in the next five years,2010 through 2014,primarily for collection and distribution projects.Management expects to fund the plan with a combination of parity bond proceeds, subordinate loans,existing reserves,and customer charges. Bond provisions include an additional bonds test and rate covenant on the non-assessment bonds that permits additional debt if net revenues of the system(excluding assessments)cover non-assessment debt by 1.25x.In addition,assessment revenues plus surplus net system revenues must cover assessment debt by at least 1x.A debt reserve requirement of 10% of par, 1.25x average annual debt service,or maximum annual debt service has been fulfilled with a surety from Ambac Assurance Corp. (A/Negative/--). Outlook The stable outlook reflects Standard&Poor's expectation that the system will continue to generate net revenues sufficient to maintain good DSC and a strong liquidity position in line with Pasco's policy.We further expect that, in future,the system's regular rate studies,sufficient water supply,and adequate treatment capacity should minimize the potential for operational pressures due to capital needs and additional parity debt. 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Copyright©1994-2009 Standard&Poors,a division of The McGraw-Hill Companies.All Rights Reserved- www.standardandpoors.com/ratingsdiroct www.standardandpoors.com/ratingsdiroct 5 713,61513001V765 AGENDA REPORT NO. FOR: City Council Date: March 18, 2009 TO: Gary Crutchfiel anager W/Shop Mtg.: March 23, 2009 Stan Strebel,A nistr i e Yd Co rvice Director Reg. Mtg.: April 6. 2009 FROM: Jim hase, ance Mana SUBJECT: AUTHOR ATION TO PURCHASE PERSONAL PROPERTY WITH LOCAL OPTION CAPITAL ASSET LENDING (LOCAL)PROGRAM I. REFERENCE(S): A) Proposed Authorizing Ordinance B) Proposed Reimbursement Authorization Resolution C) Annex 1 - Copy of Notice of Intent to utilize the LOCAL Program D) Annex 2- Copy of Sample Financing Contract E) Annex 3 -Certificate Designating Authorized Agency Representatives U. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 3/23/09 Discussion 4/6/09 MOTION: I move to adopt Ordinance No. , authorizing the acquisition of personal property known as the Police Department Patrol Vehicle Computer Equipment and a financing contract with the State of Washington Local Option Capital Asset Lending (LOCAL) Program and to authorize publication by summary only. I move to approve Resolution No. , authorizing reimbursement for the purchase of the personal property known as the Police Department Patrol Vehicle Computer Equipment through a financing contract. III. FISCAL IMPACT: $240,000 budgeted. Financing of$200,000 is proposed at an estimated 4.25% interest. IV. HISTORY AND FACTS BRIEF: A. The 2009 budget includes$240,000.00 for the purchase of ruggedized permanent mounted computers for use in the city's police patrol vehicles. These computers were proposed to replace the current method of issuing one consumer grade laptop computer to each patrol officer. The current method has shown increasing costs and maintenance issues, including frequent repairs, downtime to the officers, inability to operate in the extreme temperatures without constant idling of the vehicles,resulting in short lifecycles. Using permanent mount computers in the patrol vehicles reduces the number of computers in the patrol division, saving licensing costs, computer replacements and the number of computers requiring support by the Information Services Division. They also provide additional officer benefits over the current laptops, including touch screens, backlit keyboards, and airbag safety compliance. B. By implementing the hard mount computers in the patrol division and phasing out laptop use by other officers, the police department will save an estimated 24%of officer computer costs each year, totaling$106,662.00 over the 6 year planned life cycle. This will also reduce the number of the IS division's highest maintenance computers by 22%, saving repair time and costs, plus software licensing fees. Additional savings will be realized through reduced un- attended patrol car idling and officer computer downtime. C. The purchase of the Police Department Patrol Vehicle Computer Equipment can be financed through the LOCAL Program over a 4 year period. The latest financing for personal property through the LOCAL Program was in December 2008 at an interest rate of approximately 4.25%. The State Treasurer's Office generally offers these financing options every 3 months. The next available financing for our purposes, however, would be in June and the City would receive the loan proceeds ($200,000) at that time. Interest rates are expected to remain about the same. 8(b) V. DISCUSSION: Financing through the LOCAL program would likely be at an interest rate of approx. 4.25%. VI. OTHER COMMENTS: Staff recommends participating in the LOCAL Program for this purchase. Future budgets will include the cost to replace the equipment at the end of its useful life of six years. The financing, however, will be repaid in 4 years. The City last used the LOCAL Program in 2004 to finance the purchase of Digital Video Equipment installed in Patrol vehicles. The LOCAL program is an expanded version of the successful state agency lease/purchase program. The program was originally created by the Legislature in 1989 (RCW 39.94) to provide the lowest cost financing for state agency purchases by pooling funding needs into larger offerings of securities. The Legislature passed legislation in 1998 to provide local governments access to the program. Local government agencies of all types can finance equipment needs through the State Treasurer's office subject to existing debt limitations and financial considerations. The financing in December 2001 was the first real estate financing through the LOCAL Program. The major benefits of LOCAL program are (1) simplicity and (2)low cost financing. Participants will benefit from the current program rating of Moody's Aa2, low fees and expenses, and access to the public bond markets. ORDINANCE NO. AN ORDINANCE AUTHORIZING THE ACQUISITION OF PERSONAL PROPERTY KNOWN AS THE POLICE DEPARTMENT PATROL VEHICLE COMPUTER EQUIPMENT AND EXECUTION OF A FINANCING CONTRACT AND RELATED DOCUMENTATION RELATING TO THE ACQUISITION OF SAID PERSONAL PROPERTY. WHEREAS,the City of Pasco, Washington, has executed a Notice of Intent(NOI) to the Office of State Treasurer, in the form attached hereto as Annex 1, in relation to the acquisition of and the financing of the acquisition of the Property, as defined below, under the provisions of RCW ch 39.94; and WHEREAS, it is deemed necessary and advisable by the City Council of the City of Pasco that the City of Pasco acquire the equipment and/or personal property identified on Annex 1 attached hereto (Property); and WHEREAS, it is deemed necessary and advisable by the City Council of the City of Pasco that the City of Pasco enter into a Local Agency Financing Contract with the Office of the State Treasurer, in the form attached hereto as Annex 2 (the "Local Agency Financing Contract"), in an amount not to exceed $200,000, in order to acquire the Property, and finance the acquisition of the Property and related financing costs; and WHEREAS, the City of Pasco will undertake to acquire the Property on behalf of and as agent of the Washington Finance Officer's Association (the "Corporation") pursuant to the terms of the Local Agency Financing Contract, and in accordance with all applicable purchasing statutes and regulations applicable to the City of Pasco; and WHEREAS, the City of Pasco desires to appoint the individuals set forth in Annex 3 as the representatives of the City of Pasco in connection with the acquisition of the Property and execution of the Local Agency Financing Contract (each as an "Authorized Agency Representative"); NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Pasco as follows: SECTION 1: The individuals holding the offices or positions set forth in Annex 3 are each hereby appointed as a representative of the City of Pasco in connection with the acquisition of the Property and execution of the Local Agency Financing Contract and all other related documents. A minimum of 2 Authorized Agency Representatives shall be required to execute any one document in order for it to be considered duly executed on behalf of the City of Pasco. SECTION 2: The form of the Local Agency Financing Contract attached hereto as Annex 2 is hereby approved and the Authorized Agency Representatives are hereby authorized and directed to execute and deliver the Local Agency Financing Contract, in an amount not to exceed $200,000 and in substantially the form attached hereto with such changes as may be approved by the Authorized Representatives, for the acquisition of the Property and financing of the acquisition of the Property and related financing costs. SECTION 3: The City of Pasco hereby authorizes the acquisition of the Property as agent of the Corporation in accordance with the terms and provisions of the Local Agency Financing Contract. SECTIONS 4: The Authorized Agency Representatives are hereby authorized to execute and deliver to the Office of the State Treasurer all other documents, agreements and certificates, and to take all other action, which they deem necessary or appropriate in connection with the financing of the Property, including, but not limited to, any amendment to the NOI, any tax certificate and any agreements relating to initial and ongoing disclosure in connection with the offering of securities related to the financing. SECTION 5: This ordinance shall become effective immediately upon its passage. Passed by the City Council of the City of Pasco, Washington, at a regular meeting thereof held this 6t' day of April, 2009. Joyce Olsen, Mayor ATTEST: APPROVED AS TO FORM: Debra Clark, City Clerk Leland B. Kerr, City Attorney RESOLUTION NO. A RESOLUTION AUTHORIZING REIMBURSEMENT FOR THE PURCHASE OF PERSONAL PROPERTY KNOWN AS THE POLICE DEPARTMENT PATROL VEHICLE COMPUTER EQUIPMENT THROUGH A FINANCING CONTRACT. SECTION 1. The City of Pasco reasonably expects to reimburse the expenditures described herein with the proceeds of a financing contract to be entered into by the City of Pasco. SECTION 2. The expenditures with respect to which the City of Pasco reasonably expects to be reimbursed from the proceeds of Reimbursement Obligations are for the Police Department Patrol Vehicle Computer Equipment. SECTION 3. The expenditures with respect to which the City of Pasco reasonably expects to be reimbursed from the proceeds of Reimbursement Obligations will be made from the General Fund,Non-Departmental Capital Outlay. SECTION 4. The maximum principal amount of Reimbursement Obligations expected to be issued for the property described in Section 2 is $200,000. This resolution shall become effective immediately upon its adoption. APPROVED by the City Council of the City of Pasco, Washington,this 6tn day of April, 2009. Joyce Olsen, Mayor ATTEST: APPROVED AS TO FORM: Debra Clark, City Clerk Leland B. Kerr, City Attorney Annex 1 Notice of Intent State of Washington LOCAL (Local Option Capital Asset Lending) Local Government Information. County: Franklin Legal Name: City of Pasco MCAG No.: 292 Contact Person: Jim Chase Title:Jinancial Services Manager Address: P O Box 293 Zip: _99301_ Phone: 509-544-3065 Fax: 509-544-3082 E-mail: chasei(a_)pasco-wa.gov Would you prefer to receive financing documents(check one): x Already have financing documents ❑ MS Word 6.0 by e-mail ❑ 3.5"disk–Word 97 by U.S.mail ❑ Hard copy by U.S.mail Property (Real Estate or Equipment) Property description(include quantity,if applicable):—3 2 Motorola MW810 Computers Total cost: $ 235,953.05 Maximum amount to finance: $ 200,000.00 Finance term: Z_''Years_Useful life: 6 years(extended warranty bei g urchased)_Desired financing date: ASAP Purpose of property (Please be specific and include dept. of use): _Police Department Equipment: Computers will be purchased and permanently installed in Police Patrol Vehicles. Police officer's are currently using laptop coml2uters. Those are nearing the end of their useful lives and the new computers will be hard mounted in the vehicles for safe gu oses) We are purchasing extended warranty's(to 6 years)which cost will not be included in the financing. If real estate,the Real Estate Worksheet: ❑ Is attached ❑ Will be provided by(date)_ _ If equipment, will the property purchase price be paid with: ❑ program proceeds or© general funds to be reimbursed from program proceeds? If general funds are to be used, include a copy of the Iocal agency's reimbursement resolution with the financing documents. Security Pledge ❑Voted general obligation of local government.. ® Non-voted general obligation of local government Other Information Approximate population:_54,000 (not required for cities and counties). If any of the following apply,please provide a complete discussion on a separate page: ❑ Yes ® No Does the local government use registered warrants,interfund loans or other cash flow borrowing? ❑ Yes ® No Is the local govermnent a party to significant litigation? ® Yes ❑No Is this a reimbursement? If yes, date funds spent_Upon approval of LOCAL Financing We are not required to submit the Credit Form because_ _ Has local government received a bond rating in the last two years? ® Yes ❑No Bond rating(s):_2007 Revenue Bonds A3 (Moody's Rating Agency-June_19,2007) (attach rating agency letter) By executing this Notice of Intent,the local agency acknowledges,agrees to and accepts its designation and appointment as'the agent of the nominal lessor in connection with the acquisition of the proiect.By executing this Notice of Intent,the local agency further acknowledges and agrees that certificate counsel and any other special counsel to the state in connection with the authorization,issuance and delivery of the certificates and the related financing documents shall not be acting,and shall not be deemed to act,as counsel to the local agency,nor shall any atto - ]lent r ship exist or be deemed to exist between such counsel and any participating local agency in connection with such matter . Submitted by: Ga Cru fie] Title: City Manager Date: Signature: I Transaction No._ _ Annex 2 to Authorizing Resolution(Equipment) LOCAL AGENCY FINANCING CONTRACT,SERIES 2009 (Equipment) This Local Agency Financing Contract, Series 2009(the"Agency Financing Contract")is entered into by and between the state of Washington(the"State"), acting by and through the State Treasurer(the"State Treasurer"),and[Agency Name),a[Agency Type]of the State(the"Local Agency"). RECITALS WHEREAS,certain State agencies(as defined in Appendix I hereto,"State Agencies")are authorized to acquire real and personal property used or needed by such State Agencies through Agency Financing Contracts entered into pursuant to Chapter 356,Laws of Washington,1989,codified as Chapter 39.94 of the Revised Code of Washington(the"RCW"),as supplemented and amended(the"Act");and WHEREAS,Chapter 291,Laws of Washington,1998 supplemented and amended the Act to authorize the State to enter into Agency Financing Contracts on behalf of certain local agencies(as described therein,"Local Agencies"),including the Local Agency,to finance the acquisition of real and personal property by such Local Agencies;and WHEREAS,the State Treasurer has established a consolidated program providing for the execution and delivery of certificates of participation in such Agency Financing Contracts,or in Master Financing Contracts with respect thereto,in series from time to time in order to provide financing or refinancing for the costs of acquisition of real and personal property by State Agencies and Local Agencies;and WHEREAS,simultaneously with the execution and delivery hereof,the State is entering into a Master Financing Contract,Series 200_,dated as of the Dated Date(the"Master Financing Contract")with the Washington Finance Officers Association,a nonprofit corporation duly organized and existing under and by virtue of the laws of the state of Washington(the"Corporation"),to provide financing for the costs of acquisition of certain items of personal property by certain State Agencies and Local Agencies,including the Local Agency,under the terms set forth therein;and WHEREAS,the State Treasurer and the Local Agency have determined that it is necessary and desirable to enter into this Agency Financing Contract to provide financing or refinancing for the costs of acquisition of certain items of personal property,described in Exhibit B hereto(the"Property"),by the Local Agency;and WHEREAS,the State Finance Committee has authorized the execution and delivery of this Agency Financing Contract pursuant to Resolution No.987 adopted on October 7,2003,and WHEREAS, all acts, conditions and things required by law to exist,to have happened and to have been performed precedent to and in connection with the execution and delivery of this Agency Financing Contract do exist,have happened and have been performed in regular and due time,form and manner as required by law,and the Parties hereto are now duly authorized to execute,deliver and perform their respective obligations under this Agency Financing Contract; NOW THEREFORE,in consideration of the mutual covenants and agreements contained herein and for other valuable consideration,the Parties hereto mutually agree as follows: Section 1.1 Defined Terms.Capitalized terms used but not otherwise defined in this Agency Financing Contract shall have the respective meanings given such terms in Appendix I hereto. Section 1.2 Notice of Intenr Personal Property Certificate Certificate Designating Authorized Local Agency Representative. The Local Agency has" delivered a Notice of Intent to the State Treasurer in the form of Exhibit A attached hereto and incorporated herein by this reference. In order to evidence its acceptance of the Property financed and acquired pursuant hereto,the Local Agency has executed and delivered herewith,or will execute and deliver within 60 days from the Dated Date to the State Treasurer,a Personal Property Certificate in the form of Exhibit B attached hereto and incorporated herein by this reference.The Local Agency has delivered a Certificate Designating Authorized Agency Representatives to the State Treasurer in the form of Exhibit C attached hereto and incorporated herein by this reference.Said Certificate is currently in force and has not been amended,withdrawn or superseded,and the signatures shown thereon are true and correct originals of the signatures of the persons who hold the titles shown opposite their names.The signature of any one of the individuals shown on said Certificate is sufficient to bind the Local Agency under this Agency Financing Contract with respect to any of the undertakings contemplated herein.The terms and provisions set forth in Appendix U hereto are incorporated herein and made a part hereof by this reference. Section 1.3 Installment Sale and Purchase of Propgrty_The State hereby agrees to sell,assign and convey,and does hereby sell,assign and convey to the Local Agency,and the Local Agency hereby agrees to purchase,acquire and assume,and does hereby purchase,acquire and assume,from the State,all of the State's right,title and interest in and to the Property and all proceeds and profits thereof and therefrom,subject to the security interest created pursuant to Section 2.5 of Appendix 11 hereof, and the Local Agency agrees to pay in consideration thereof the Purchase Price therefor and interest thereon and the Additional Costs in accordance with Section 1.4 hereof,and all other amounts required to be paid by the Local Agency hereunder,all in accordance with the provisions of this Agency Financing Contract. Section 1.4 Agency Installment Payments. In consideration of the sale of the Property and the covenants and agreements of the State in this Agency Financing Contract,the Local Agency hereby promises to pay to the State the following amounts at the following times:(a)On each Agency Installment Payment Date,the Agency Installment Payment set forth in Exhibit D hereto,consisting of a Principal Component and/or an Interest Component as set forth in such Exhibit; and(b)All Additional Costs incurred by the State in connection with the sale of the Property to the Local Agency,the execution and delivery of the Certificates,and the observance and performance of the Series 200=Agreements,within thirty(30)days following receipt of an invoice from the State with respect thereto which includes(i)a brief description of each such Additional Cost,(ii)the party to whom payment is due,(iii)the amount thereof,and(iv)such additional information as the Local Agency may reasonably request. Section 1.5 Term.The term of this Local Agency Financing Contract shall commence on the Dated Date and shall terminate on the date on which all amounts due hereunder shall have been paid or the payment thereof duly provided for pursuant to Section 4.3 of Appendix 11 hereof. STATE OF WASHINGTON [AGENCY NAME] OFFICE OF THE STATE TREASURER as Local Agency By By Designated Treasurer Representative Authorized Agency Representative By Authorized Agency Representative 12 Annex 3 CERTIFICATE DESIGNATING AUTHORIZED AGENCY REPRESENTATIVES 1, Joyce Olson, Mayor the City of Pasco, hereby certify that, as of the date hereof, pursuant to Ordinance No. , the following individuals are each an "Authorized Agency Representative": as indicated by the title appended to each signature, that the following individuals are duly authorized to execute and deliver the Financing Contract to which this Certificate is attached as Annex 2, and all documentation in connection therewith, that the signatures set forth below are the true and genuine signatures of said Authorized Agency Representatives and that pursuant to such ordinance, 2 of the 3 following signatures are required on each of the aforementioned documents in order to consider such documents executed on behalf of the City. Gary Crutchfield, City Manager Stan Strebel, Administrative & Community Services Director James W. Chase, Financial Services Manager Dated this 6th day of April, 2009 Joyce Olson, Mayor City of Pasco SUBSCRIBED AND SWORN TO before me this day of By: NOTARY PUBLIC in and for the State of Washington,residing at: Printed Name: My Commission expires: AGENDA REPORT FOR: City Council March 31, 2009 TO: Gary Crutchfield, City r Workshop Mtg.: 03/23/09 Rick White, �i . ' Regular Mtg.: 04/06/09 Community & Economic Development Director FROM: Angie Pitman, Block Grant Administrator SUBJECT: Neighborhood Stabilization Program SP) Guidelines I. REFERENCE(S): 1. Resolution Approving Neighborhood Stabilization Program (NSP)Plan Guidelines 2. Summary of Neighborhood Stabilization Guidelines 3. Neighborhood Stabilization Program(NSP) Plan Guidelines (Council packets only; copies are available for public review in the Planning office,the Pasco Library or on the city webpage at http://www.pasco-wa.gov/Generallnfo/CityCouncilReports.) II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 3/23: Discussion 4/06: Motion: I move to approve Resolution Approving Neighborhood Stabilization Program(NSP) Plan Guidelines 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) Council approved the Neighborhood Stabilization Program (NSP) Work Plan by resolution at the March 16, 2009 meeting. C) The Neighborhood Stabilization Program (NSP) Action Plan required to be submitted to CTED by April 1, 2009 for use of the funds has been prepared in accordance with the approved NSP Work Plan. V. DISCUSSION: A) Guidelines for administration of the Neighborhood Stabilization Program (NSP) Action Plan are needed to provide criteria for participation in the plan, ensure compliance with Federal, State and City laws governing the program, and provide performance measurement and monitoring goals. B) The requirements of the program guidelines are summarized for Council review and comment, and delineated as to whether it is a Federal/State requirement of the program or local discretion. C) Per discussion at the Council Workshop of March 23, 2009, the"liquid asset" limits has been raised from $5,000 to $10,000 (page 3, NSP Guidelines). 8(c) RESOLUTION NO. A RESOLUTION APPROVING THE NEIGHBORHOOD STABILIZATION PROGRAM (NSP) PLAN GUIDELINES WHEREAS, the City of Pasco has been awarded $402,141 under the Neighborhood Stabilization Program (NSP) authorized under Title III of the Housing and Economic Recovery Act of 2008 (HERA) and administered by the US Department of Housing & Urban Development (HUD), and subject to both CDBG and HOME regulations for the purpose of stabilizing neighborhoods negatively affected by foreclosures and abandoned properties; and WHEREAS, the Pasco City Council approved the Neighborhood Stabilization Program (NSP) Work Plan in March, 2009; and WHEREAS, the Neighborhood Stabilization Program (NSP) Plan has been prepared in accordance with Community Trade and Economic Development (CTED) Guidelines and the approved NSP Work Plan; NOW,THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: Section 1. That the Neighborhood Stabilization Program (NSP) Plan Guidelines (attached) are hereby approved. PASSED by the City Council of the City of Pasco this day of , 2009 CITY OF PASCO: Joyce Olson Mayor ATTEST: APPROVED AS TO FORM: Sandy L. Kenworthy Leland B. Kerr Deputy City Clerk City Attorney SUMMARY NSP PROGRAM REQUIREMENTS A O L w rz o a a Applicability Program Requirement Applicant United States citizen,United States non-citizen national X or qualified alien; • Middle-income(120%AMI)and below; X • Demonstrate a financial need for NSP assistance. X Suitable Borrower . Complete approved home buying course X • Must make a minimum contribution of at least$1,000 of X their own funds to be used towards the purchase of the property as evidence of the borrower's financial participation. • Sufficient income to support the primary debt and able to X show evidence of approved funding from primary lender. Real Property • Be a foreclosed property; X • Within Pasco city limits; X • Have a maximum purchase price that does not exceed the X current median purchase price for the area, as established annually by HUD; • Meet the definition of single family housing at 24 CFR X 92.254(a)(1); • Meet the definition of affordable, modest housing X contained in 24 CFR 92.254(a)(2); • Meet the property standards contained in 24 CFR X 92.251(a)(2); • Free of chipped or peeling paint if the home was built X before 1978, per 24 CFR 92.355; • Fee Simple Title—the borrower must provide a X preliminary title report that is satisfactory to the City. • Occupied by the seller(owner),or the house is vacant; X • "As Is"meets HUD HQS and local housing standards X • Current property taxes. X Manufactured Home • In addition to above real property requirements: X • Constructed after June 15, 1976 and in accordance with X standards established under 24 CFR Part 3280; • Located on land that is held by the first-time homebuyer, X or the homebuyer has a lease interest in the land for the entire required affordability period; • Meet local building and zoning standards; X • Be fixed to a permanent foundation; X • Be taxed as real property, i.e.title eliminated; and X • Be connected to permanent utility hook-ups. X - 1 - Printed 3119109 D � IOU f� ai o y a Applicability Program Re uirement Eligible Project Reasonable and necessary project costs as allowable per X Costs OMB-A87 and 24 CFR 92.602(b)(1) and(3) • Total closing costs no greater than 3.5% per note X • Loan to Value Ratio no greater than 103.5%of the sales X price of the home, including required and necessary closing costs. _ Inspections • Meets HUD Housing Quality Standards X Required . Meets Environmental Review requirements X • Meets Lead-Based Paint minimum requirements X • Appraisal X Down Payment • Up to 50% of required down payment X Assistance Loan . Recapture or resale of 100% of NSP investment if X Terms transfer occurs during period of affordability(5 years) • Repayment terms for resale or recapture from net X proceeds(pro-rated to return some of owner's investment) + Lien in no less than 2nd position X • Up to$10,000 of direct assistance as silent second X + Zero percent interest rate on silent second X • Acceptable primary loan types(conventional loan,fixed X rate,no greater than 30 year term),no adjustable rate or subprime mortgages X • Principle residence of owner for life of the loan X • Real property taxes and hazard insurance must be current X at all times • Property kept in good condition, repair and permit no X waste thereof • The home may not be used for any activities prohibited X by law. Other Regulations + Fair Housing Act Equal Credit Opportunity Act(ECOA)• X Applicable • Real Estate Settlement Practices Act(RESPA) X • Truth in Lending Act(TILA)(Part of federal Consumer X Credit Protection Act) • Right to Financial Privacy Act of 1978 [Codified to 12 X U.S.C. 3401 note] • Title IV of the Personal Responsibility and Work X Opportunity Reconciliation Act of 1996, Monitoring • City will monitor the homebuyer via postal mail or other X methods throughout the life of the NSP loan to ensure compliance with residency requirements. - 2 - Printed 3119/09 NEIGHBORHOOD STABILIZATION PROGRAM(NSP) GUIDELINES I. PURPOSE............................................................................................................................... 1 II. PROGRAM DESCRIPTION.................................................................................................. 1 Regulations ................................................................................................................................. 1 III. DEFINITIONS.................................................................................................................... 1 DownPayment Assistance.......................................................................................................... 1 Homeownership.......................................................................................................................... 1 ApprovedLender........................................................................................................................ 2 EligibleApplicant....................................................................................................................... 2 IncomeEligible...........................................................................................................................2 SuitableBorrower....................................................................................................................... 2 Approved Homebuyer Training Class........................................................................................ 3 AssetLimit.................................................................................................................................. 3 LiquidAssets .......................................................................................................................... 3 OtherAssets............................................................................................................................3 EligibleProperties....................................................................................................................... 3 IneligibleProperties.................................................................................................................... 4 IV. NSP LOAN CRITERIA...................................................................................................... 4 NSP Loan Amount, Terms and Conditions................................................................................ 5 NSPLoan Fees............................................................................................................................ 5 Availabilityof Funds .................................................................................................................. 5 Down Payment Homebuyer Assistance:..................................................................................... 5 Subordination.............................................................................................................................. 5 Compatibility with Primary Loan and Other Funds ................................................................... 6 V. NSP PROJECT CRITERIA.................................................................................................... 6 EligibleProject Costs.................................................................................................................. 6 IneligibleProject Costs............................................................................................................... 7 Property Inspections and Approvals Prior to Closing................................................................. 7 Inspections and Reviews Conducted by City of Pasco............................................................... 7 EnvironmentalReview............................................................................................................ 7 PropertyStandards.................................................................................................................. 7 Lead-Based Paint Hazards...................................................................................................... 8 Other required reviews and inspections...................................................................................... 9 Appraisal................................................................................................................................. 9 Closingand NSP Documents...................................................................................................... 9 NSPLoan Application............................................................................................................ 9 Required Addenda to Sales Agreement.................................................................................. 9 Loan Requirements after Closing............................................................................................. 10 Period of Affordability and Recapture...................................................................................... 10 Subordination............................................................................................................................ 11 Uniform Relocation Act (URA)................................................................................................ 11 Outreach& Marketing.............................................................................................................. 12 VI. OTHER FEDERAL LAWS.............................................................................................. 12 VII. PROGRAM ADMINISTRATION................................................................................... 15 VIII. MONITORING............. ................................................................................................. 15 Last printed 3/31/2009 - 1 - IX. ATTACHMENT A - 2008 INCOME GUIDELINES ...................................................... 16 No qualified person shall be denied the benefits of, the participation in, or be subjected to discrimination under any program or activity funded by the City of Pasco on the basis of race, color, national origin, seat, religion, disability or familial status. Last printed 3/31/2009 - i - I. PURPOSE Washington State Community Trade and Economic Development (CTED) Department has been allocated $28,159,293 to establish and implement the Neighborhood Stabilization Program (NSP) in Washington state. The NSP is authorized under Title III of the Housing and Economic Recovery Act of 2008 (HERA) and administered by the US Department of Housing & Urban Development (HUD) for the purpose of stabilizing neighborhoods negatively affected by foreclosures and abandoned properties. II. PROGRAM DESCRIPTION The City of Pasco has been identified by CTED as an area of greatest need within the state and has received approximately $402,141 of allocated NSP funds for neighborhood stabilization City-Wide. The City of Pasco, Community & Economic Development Department staff works with local lenders to offer the Neighborhood Stabilization Program (NSP). NSP makes ownership of single family housing in Pasco more affordable for qualified low to moderate- income homebuyers by reducing the cash needed to purchase the home and by reducing monthly mortgage payments. The goal of the Pasco Homebuyer Program is to help eligible homebuyers become successful homeowners. To accomplish this goal the City has developed criteria to determine suitability. These "suitability requirements" apply to the borrower(s) that will occupy the unit. Co-signer(s) are not allowed as part of NSP. The NSP Homebuyer's Down Payment Assistance (DPA) program is available for a limited time, dependent on funding availability, and is offered on a first come,first eligible served basis. Regulations The NSP is governed by: 1. Housing and Economic Recovery Act of 2008 (HERA) Title III; 2. Community Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP) 24 CFR 570; and 3. HOME Investment Partnerships 24 CFR 570.92. III. DEFINITIONS Down Payment Assistance Secondary loan that helps pay for down payment and closing costs. Homeownership The term "homeownership" is defined at 24 CFR 92.2. Acceptable forms of homeownership for a NSP loan include ownership in fee simple title or at least 99-year leasehold interest, or in the case of a manufactured home, must be on a permanent foundation with a leasehold interest of the lot for the entire required affordability period. Last printed 3/31/2009 - I - Approved Lender Any local lender licensed to do business in Washington State. Mortgage brokers, designated brokers and loan originators must be licensed by the Washington State Department of Financial Institutions Division of Consumer Services. Eligible Applicant To qualify for NSP assistance, the applicant must: — Be a United States citizen, United States non-citizen national or qualified alien; — Middle-income (120% of AMI) and below; and — Demonstrate a financial need for NSP assistance. The term "low to moderate-income" is defined at 24 CFR 92.2. A low to moderate-income family is a family whose annual income does not exceed 80 percent of the median area income, and a low to middle-income family is a family whose annual income does not exceed 120 percent of the median area income for the Pasco, Kennewick and Pasco MSA, as determined annually by HUD, (Attachment A). Income Eligible City of Pasco staff will determine whether a family is income eligible based on the family's gross annual income. The NSP follows the "Part 5" definition of"Annual Income" as defined at 24 CFR 5.609. This method takes into account the total gross annual income of each household member 18 years of age and older that is anticipated to be received during the coming 12-month period and includes: 1. Wages, salaries, overtime,tips, commissions, bonuses, etc.: 2. Self-employment income from owned business, including proprietorships and partnerships; 3. Interest, dividends, net rental income, or income from estates or trusts; 4. Social Security or railroad retirement; 5. Supplemental Security Income, Aid to Families with Dependent Children, or other public assistance or public welfare programs; 6. Retirement, survivor, or disability pensions; and 7. Any other source of income received regularly, including Veterans (VA) payments, unemployment compensation,child support and alimony. Suitable Borrower Each loan application must comply with the applicable HUD regulations. As part of its underwriting obligation, the City of Pasco will rely on the primary lender to analyze each loan application to determine that the applicant is a suitable borrower, as described below, before an applicant starts the NSP process. The purpose of the underwriting analysis is to reduce the risk of fraud or loan default to the City and to ensure that the borrowers will be able to maintain their home after purchase. Last printed 3/31/2009 - 2 - Since the goal of the Pasco Homebuyer Program is to help eligible homebuyers become successful homeowners, borrowers must meet suitability requirements. — The borrower must complete an approved home buying course from a HUD Approved Housing Counselor or Washington State Housing Finance Commission certified provider and provide certification of achievement. -- The borrower must have sufficient income to support the primary debt and must be able to obtain approval from a primary lending institution for the purchase of the home. Prior to reservation of funds and final eligibility approval, applicant must show evidence of approved funding from primary lender. — The borrower must make a minimum contribution of at least $1,000 of their own funds to be used towards the purchase of the property as evidence of the borrower's financial participation. Approved Homebuyer Training Class An approved homebuyer training class is one that has been approved by the Washington State Housing Finance Commission. A list of approved homebuyer education training is available through the Consumer Credit Counseling website or Washington State Housing Finance Commission website. Any alternative course must be approved by the City. Asset Limit Liquid Assets The Asset Limit refers to the applicant's personal (non-business) liquid assets. Liquid assets are defined as cash and assets that can be readily converted to cash. Liquid assets include checking and savings accounts, certificates of deposit, money market accounts, stocks, bonds and profit sharing accounts (if funds can be withdrawn without penalty). Retirement investments, college savings plans, medical savings plans, and other similar vehicles are not considered liquid assets. To be eligible for the NSP loan, the borrower must not have liquid assets after closing in excess of five thousand dollars ($10,000). Borrowers who have additional liquid assets in excess of $10,000 must use those prior to utilizing NSP. In order to participate in the NSP the borrower may not receive cash back at closing; any funds in excess must be applied to a principal reduction or returned to the City of Pasco. Other Assets The Borrower cannot have any interest in other real estate or in a business other than the borrower(s) source of income. Eligible Properties To qualify for NSP assistance, the property selected by the homebuyer must meet ALL of the following criteria. The house must: Be a foreclosed property; Last printed 3/31/2009 - 3 - — Be located within Pasco city limits; — Have a maximum purchase price that does not exceed the current median purchase price for the area, as established annually by HUD; — Meet the definition of single family housing at 24 CFR 92.254(a) (1); — Meet the definition of affordable, modest housing contained in 24 CFR 92.254(a) (2); — Meet the property standards contained in 24 CFR 92.251(a); — Be free of chipped or peeling paint if the home was built before 1978, per 24 CFR 92.355; — Be occupied by the seller(owner), the homebuyer or the house is vacant; — Be current on property taxes; — Have clear title — the borrower must provide a preliminary title report that is satisfactory to the City. Only single family housing units qualify for NSP funding. A single family housing unit includes a single unit in a one- to four-family residence, a condominium unit, or a combination of manufactured housing and lot. To qualify for NSP assistance, a manufactured housing unit must: — Have been constructed after June 15, 1976 and in accordance with standards established under 24 CFR Part 3280; — Be located on land that is held by the homebuyer, or the homebuyer has a lease interest in the land for the entire required affordability period; — Be fixed to a permanent foundation; — Be taxed as real property, i.e. title eliminated; and — Be connected to permanent utility hook-ups. Ineligible Properties Tenant-occupied properties are not eligible under the NSP; or, tenants have been given notice or have been required to vacate in order to sell this property. This will be verified by City staff. The house must be vacant or occupied by the seller throughout the sale period and at the time title is transferred. The only exception to this is if the homebuyer is occupying the home as a renter. An "AS IS"home, in need of repair(s) necessary to meet the HUD HQS Inspection and/or local code does not qualify for the City' s NSP. IV. NSP LOAN CRITERIA To qualify for a loan through a NSP program: — Homebuyer must be an "Eligible Applicant"; — Homebuyer must be a "Suitable Borrower"; and — The house selected must be an "Eligible Property". Last printed 3/31/2009 - 4 - NSP Loan Amount, Terms and Conditions NSP is a secondary loan that helps pay for down payment and closing costs. The NSP-eligible costs are defined in the Eligible Costs section of the Guidelines. Minimum: The minimum amount of NSP funds that must be invested in a project is $1,000. NSP Loan Fees There are no loan fees associated with a NSP loan. There are recording fees to Franklin County and, when applicable, title fees. The Lender's Good Faith Estimate and the final settlement statement of costs must not include fees for the NSP loan. Availability of Funds Funds are available on a first-come, first-eligible served basis. The City of Pasco Community & Economic Development staff will reserve funds for a specific borrower when staff receives the required information and documentation and determines that the applicant is an Eligible Applicant, a Suitable Borrower, and that the property is an Eligible Property. Funding reservations will be held for a maximum of three months with a possible one-month extension. Down Payment Homebuyer Assistance: Up to $10,000 and is provided in the form of a zero-percent interest, deferred-payment loan with no payments due until a transfer event or a default event occurs. Of this amount, up to 50% may be used for the down payment required by the lender. The remainder may be used for closing costs, prepays and other fees associated with closing. Subordination In most cases, the NSP loan is subordinate only to the primary mortgage. The borrower must occupy the home being purchased as their primary residence throughout the life of the loan. The borrower cannot rent or lease the property, in its entirety, to other persons, even on a temporary basis. Should the borrower sell, lease, or transfer title to the property, the loan must be paid back. A Transfer Event is defined as the occurrence of one or more of the following: — The transfer or attempted transfer of an interest in a portion or all of the Property, whether by, sale, refinance, contract, assignment or otherwise; or — The death of the Borrower's). Where ownership is joint the loan shall become due and payable immediately upon death of the survivor who had an interest in and resided in the property at the date of the Promissory Note. A Default Event is defined as the occurrence of one or more of the following: - A default on any of the terms of the Promissory Note, or the First Subordinate Deed of Trust; or a default of the First Promissory Note or the First Deed of Trust; The failure of the Borrower to use the Property continuously as the Borrower's primary place of residence; or Last printed 3/31/2004 - 5 - The renting, leasing or subletting of the Property to any third party for any purpose, whether rental income is received or not. Sale or transfer of the property does not include: — An encumbrance by a governmental agency in the form of an assessment for streets, sidewalks, lighting or sewer, so long as the borrower pays such assessments when due; or — The transfer of the property to the surviving borrower upon the death of one borrower provided that the surviving borrower had an interest in and resided in the property at the date of the Promissory Note. Notwithstanding the above, transfers resulting from marriage, divorce or dissolution of marriage or death of a spouse shall not constitute a Transfer Event, provided that the party acquiring an interest as the result of such event executes an agreement assuming all of the obligations of the transferring party under the terms of the original agreement. Compatibility with Primary Loan and Other Funds A NSP loan may be combined with a fully amortized primary loan that has at most a 30-year term and a fixed interest rate and the primary loan must be mortgage insurable unless the loan-to- value (LTV) rate is less than 80%. The types of loans that are compatible with NSP include, but are not limited to, the following: — FHA insured; — Conventional; — VA The following are not allowed: — Private land sales contracts; — Adjustable rate mortgages; — Prepayment penalties. NSP may be combined with gifts from family members or other down payment assistance programs as long as the suitable borrower contributes the minimum amount of their own funds to participate in a NSP loan. V. NSP PROJECT CRITERIA Eligible Project Costs The NSP-eligible project costs identified at 24 CFR 92.602(b)(1) and (3) include the costs of acquiring single family housing and the reasonable and necessary soft costs incurred by the homebuyer or The City of Pasco and associated with the financing of the property. Reasonable loan fees are defined as combined loan origination fee and discount points that do not exceed 1.75% of the amount of the note. Total closing costs should not be more than 3.5%. This cap applies to each note. Last printed 3/31/2009 - 6 - The Maximum Loan to Value Ratio is 103.5% of the sales price of the home, including required and necessary closing costs. Necessary soft costs include those items that are incidental to the sale of real estate and include: — Processing and settlement costs — Private lender origination fees — Credit reports — Fees for title evidence — Fees for recordation and filing of legal documents — Attorneys fees — Private appraisal fees — Escrow accounts to pay for up to three months of real estate taxes and one year of hazard insurance (homeowners insurance) — Professional Home Inspection Ineligible Project Costs Delinquent taxes, fees, and other charges that are the seller's responsibility; Mortgage insurance; Costs related to new construction of housing; or Rental assistance. Property Inspections and Approvals Prior to Closing The following standards must be met prior to closing. Inspections must be requested with advance notice, before closing to permit for correction and re-inspection if necessary and desired. Inspections and Reviews Conducted by City of Pasco Environmental Review Community & Economic Development staff must complete the Environmental Review requirements of 24 CFR Part 58 before CDBG NSP funds are committed to the project. The Environmental Review, for existing homes, includes location in a flood plain, lead-based paint and other hazardous materials. Property Standards One of the goals of the City of Pasco's housing programs is to provide "'decent, safe and sanitary housing". To accomplish this, HUD regulations set forth basic Housing Quality Standards (HQS) which all homes must meet before federal assistance can be provided. The house must meet the Property Standards per 24 CFR 92.251(a)(2) and pass a HQS Inspection, performed by the City Last printed 3/31/2009 - 7 - prior to closing. If violations are found, the property is not eligible for purchase unless the violations are corrected and a second inspection is performed. THE HOS INSPECTION DOES NOT SUBSTITUTE A PROFESSIONAL HOME INSPECTION NOR DOES THIS INSPECTION GUARANTEE THE CONDITION OF THE HOME. Lead-Based Paint Hazards The Lead Safe Housing Rule applies to any housing unit built prior to January 1, 1978 and is assisted with HUD funds. The rule affects the way the City of Pasco implements the homebuyer programs as follows: 1. Visual Assessment. The City will conduct a visual assessment at the property. All painted surfaces, interior and exterior, must be free of defective paint(peeling, Chipping, chalking or cracking. If the property passes a lead-based paint visual assessment, no corrective work or clearance testing is required. 2. If defective paint is found, the property is not eligible for purchase unless the deficiencies are corrected. 3. 10-day period. The buyers must be given a 10-day period to obtain a lead-based paint inspection or a risk assessment from a certified risk assessor at their own expense to examine any defective paint and determine if it is lead-based paint. 4. The defective paint surfaces must be corrected by workers trained in lead-safe work practices or workers supervised by a trained and certified supervisor or contractor. Once corrective measures have been completed and the surrounding area cleaned, a certified risk assessor must perform a clearance examine. The seller shall pay the cost of clearance testing. The house must pass the clearance examination prior to closing. 5. Notification and Disclosure: a. The seller must disclose known lead-based paint and lead-based paint hazards and provide available reports to the buyers and to the City of Pasco. b. A lead-based paint information pamphlet (EPA/HUD/CPSC pamphlet, "Protect Your Family from Lead in Your Home" EPA747-K-99-001) and a lead-based paint disclosure notice must be provided to the buyer. Prior to closing, the City must receive documentation that the homebuyer has received the pamphlet and disclosure notice. C. Sellers and real estate agents share responsibility for ensuring compliance with 24 CFR 35.94 which requires disclosure of any available lead hazard evaluation report, and the disclosure of the existence of any available records or reports pertaining to lead-based paint of lead-based paint hazards. d. The sales contracts must include the notification and disclosure language to comply with 24 CFR 35.80- 35.98. Notification and Disclosure language must contain these elements: — Lead Warning Statement Seller's Disclosure Last printed 3/31/2004 - 8 - Purchaser's Acknowledgement(including receipt of pamphlet) — Agent's Acknowledgement — Certification of Accuracy Signatures and dates of all parties b. Lenders, realtors, buyers and sellers are encouraged to educate themselves regarding the hazards of lead-based paint and the requirements of notification and disclosure of lead-based paint. Other required reviews and inspections Appraisal A complete residential appraisal by a Washington State-licensed appraiser is required on all NSP loans regardless of the primary loan product used. Closing and NSP Documents NSP documents will be signed at closing along with the primary lender's documents. The buyer and seller are required to sign all applicable NSP documents prior to funding. The following is a list of NSP documents. NSP Loan Application Certification by Lender that applicant is a suitable borrower — Beneficiary/Household composition information — Certification of Household Income Release of Information Property eligibility information Required Addenda to Sales Agreement — Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) contingency -- Establishes a voluntary sale under the URA and clarifies that there is no re-location payment. — ER, Property Standards and LBP contingency -- Makes contract contingent upon the home passing the following reviews and inspections performed by Community & Economic Development staff: ■ For houses built pre-1978, a Visual Assessment of the property and optional evaluation for the presence of potential LBP hazards. ■ Environmental Review form-- Required by HUD, prepared by City staff. ■ Property Standards Inspection Request form-- Notifies City staff to conduct physical inspection of the property. Last printed 3/31/2009 - 9 - — Correction Agreement (Limited Power of Attorney) -- Allows City staff and Title Company to correct typographical or clerical errors in documents within 120-day period from closing date. — Disclosure of Fair Market Value—Follow-up to Addendum 41. Informs seller of Fair Market Value from appraisal report. (This is a URA requirement and applies if CDBG or HOME funds are used.Not required if only ADDI funds are used.) — The City of Pasco Financial Record Disclosure form -- Buyer grants City access to financial records held by financial institution(s). — NSP Loan Commitment Letter. — Promissory Note -- Sets forth the terms of the loan. — First Subordinate Deed of Trust and Deed of Trust Rider --Secures Promissory Note. — Equal Credit Opportunity Act Notice -- Informs Buyer that it is illegal for creditors to discriminate. — Title Insurance Company Instructions -- Cover letter sent by City staff that itemizes documents needed and explains how funds will be sent. — Request for Verification of Income (VOI) form— City staff may use information that Lender has obtained. If information obtained by Lender is not adequate or if the date of verification is more than 6 months prior to NSP loan approval then the City of Pasco must perform its own VOL — Property Standards Inspection Report indicating that house has passed. — Closing instructions. Loan Requirements after Closing Property purchased with NSP funds must be occupied as the buyer's principal residence throughout the life of the loan. The NSP loan must be repaid in full upon title transfer, sale or default, or if the borrower no longer occupies the home as their primary residence. Renting a unit in its entirety is not permitted. Deed restrictions will reflect this requirement. Real property taxes and hazard insurance must be current at all times. Keep property in good condition, repair and permit no waste thereof. The home may not be used for any activities prohibited by law. Period of Affordability and Recapture In accordance with 24 CFR 92.254(a) (4), the period of affordability for NSP assisted loans, is outlined as follows: Last printed 3131/2009 _ 10 - Homeownership Assistance Minimum Period of NSP amount per unit Affordability In Years Under$15,000 5 $15,000 to $40,000 10 Over$40,000 15 In accordance with 24 CFR 92.254(a)(5), should the property be sold or title transferred, or should the owner no longer use the property as the primary residence during the period of affordability, the entire amount of NSP funds invested in the project will be recaptured. If the there are no net proceeds from the sale of the property, or the net proceeds are insufficient to repay the entire NSP investment due, the amount of NSP funds recaptured will be based on the net proceeds available from the sale, if any. The net proceeds are defined as the remainder of the final sale price of the property minus any superior non-NSP loan repayment, closing costs and capital improvements. Subordination Subordinations are allowed only if a borrower is refinancing the first mortgage and all of the following criteria are met: — The borrower must maintain sufficient equity of at least 10%of the current value of the home; — The City lien position does not change; — The borrower is refinancing the existing debt to lower the first lien right interest rate of at least one percent — No cash equity to the borrower; — The Title Report is acceptable to the City; and — The borrower must meet the low to moderate-income guidelines at the time of the request for subordination. A request for subordination must be made in writing and addressed to the City of Pasco Community & Economic Development Department, 525 N Third Avenue, Pasco, WA 99301. Uniform Relocation Act (URA) The purchase and sale agreement must establish that the acquisition is a voluntary acquisition under the URA. The City's URA Addendum must be attached to the purchase and sale agreement. — An owner-occupant who sells a property to a homebuyer is not eligible for relocation assistance under URA provided that, prior to sale, the seller is informed in writing: Last printed 3/31/2009 - 1 - — Of the fair market value of the property, and — That the buyer does not have the power of eminent domain and therefore will not acquire the property if negotiations fail to result in an amicable sale agreement. The fair market value of the home will be determined by a qualified third parry appraiser. Outreach & Marketing Work with the Pasco Housing Authority and Benton Franklin Community Action Committee to educate low to moderate income families assisted by public housing of the potential for homeownership through our NSP. Have informational flyers describing the NSP available at various locations at City of Pasco facilities. Send informational flyers describing NSP to large employers which include, but are not limited to: Reser's Fine Foods, IBP Inc., ConAgra Foods & Lamb-Weston. Advertise NSP in the Tri-City Herald, La Voz Hispanic Newspaper, PSC Cable Channel 12 and through the Community Development Office at the City of Pasco. Web Site. The City of Pasco's web site will describe NSP and encourage participation by low to moderate income residents and offer links to additional educational resources regarding purchasing a home. VI. OTHER FEDERAL LAWS Act Rationale Fair Housing Act A number of laws have been written in support of fair housing, including but not limited to Title VI of the Civil Rights Act of 1964; Title VIII --The Fair Housing Act of 1968, and as amended; and the Rehabilitation Act of 1973 (Section 504). The City of Richland supports the core principles of fairness and anti-discrimination to housing choice for all citizens. No qualified persons shall be denied the benefits of, the participation in, or be subjected to discrimination under any program or activity funded by the City of Richland on the basis of race, color, national origin, sex, religion, disability, or familial status. The City of Richland shall also affirmatively further Fair Housing and take appropriate actions to overcome the effects of any impediments identified, including but not limited to language barriers, architectural barriers in housing structures, housing for older persons, etc. Within three days of receipt of application, borrowers receives as part of disclosures: Fair Housing Equal Opportunity for All Form 21 —Pamphlet U.S. Department of Housing and Urban Development Fair Housing websites: Last printed 3/31/2004 - 12 - Act Rationale http://www.hud.gov/offices/fheo http://www.hud.gov/complaints/housediscrim-efin Equal Credit Opportunity ECOA applies to HAP; therefore, disclosures are sent at the time Act (ECOA). of loan application and at settlement. Within three days of receipt of application, borrowers receives as part of disclosures: Equal Credit Opportunity Act Notice Form10-Disclosures Real Estate Settlement htti)://www.hud.gov/offices/hsojsfli/res s 2602.cfm Practices Act (RESPA) RESPA applies to HAP;therefore, disclosures are sent at the time of loan application and at settlement. Within three days of receipt of application, borrowers receive as part of disclosures: Settlement Costs "Special Information" Booklet; Good Faith Estimate Mortgage Servicing Disclosure Statement Form 10-Disclosures Truth in Lending Act TILA applies to HAP, therefore, disclosures are sent at the time (TILA) (Part of federal of loan application and at settlement. Within three days of Consumer Credit Protection application, borrowers receive as part of disclosures: Act) Form 10 Disclosures Right to Financial Privacy CONFIDENTIALITY OF RECORDS---GOVERNMENT Act of 1978 [Codified to 12 AUTHORITIES SEC. 1102 Except as provided by section U.S.C. 3401 note] 1103(c) or(d), 1113, or 1114, no Government authority may have access to or obtain copies of, or the information contained in the financial records of any customer from a financial institution unless the financial records are reasonably described and such customer has authorized such disclosure in accordance with section 1104; Form 07-Financial Records Disclosure Last printed 3131/2009 - 13 - Act Rationale Title IV of the Personal Title IV of the Personal Responsibility and Work Opportunity Responsibility and Work Reconciliation Act of 1996 provides that only United States Opportunity Reconciliation citizens, United States non-citizen nationals and "qualified Act of 1996. aliens" are eligible for public benefits. To ensure compliance, the Pasco Homebuyer Programs follows the guidance provided by the United States Department of Justice and the United States Department of Housing and Urban Development. Last printed 3131/2009 - 14 - VII. PROGRAM ADMINISTRATION City of Pasco City of Pasco Finance Department Community& Economic 525 N Third Avenue Development Department Pasco,WA 99301 525 N Third Avenue Phone: (509)545-3441 Pasco,WA 99301 Fax: (509)545-3499 Phone: (509)545-3441 Fax: (509)545-3499 VIII.MONITORING The City will monitor the homebuyer via postal mail or other methods throughout the life of the NSP loan to ensure compliance with residency requirements. Last printed 3/31/2009 - 15 - IX. ATTACHMENT A - 2009 INCOME GUIDELINES (or current) 2009 Income Guidelines (NSP) For Richland,Kennewick, Pasco WA Effective March 10, 2009 1 Person 2 Person 3 Person 30% $13,600 30% $15,550 30% $17,500 50% $22,700 50% $25,900 50% $29,150 60% $27,240 60% $31,080 60% $34,980 70% $31,780 70% $36,260 70% $40,810 80% $36,300 80% $41,500 80% $46,650 Median $45,400 Median $51,800 Median $58,300 - 100% - 100% - 100% 120% $54,480 120% $62,160 120% 1 $69,960 4 Person 5 Person 6 Person 30% $19,450 30% $21,000 30% $22,550 50% $32,400 50% $35,000 50% $37,600 60% $38,880 60% $42,000 60% $45,120 70% $45,360 70% 1 $49,000 70% $52,640 80% $51,850 80% $56,000 80% $60,150 Median $64,800 Median $70,000 Median $75,200 - 100% - 100% - 100°l0 120% $77,760 120% $84,000 120% $90,240 7 Person 8 Person 30% $24,100 30% $25,650 50% $40,200 50% $42,750 60% $48,240 60% $51,300 70% $56,280 70% $59,850 80% $64,300 80% $68,450 Median $80,400 Median $85,600 - 100% - 100% 120% $96,480 120% $102,720 To qualify for NSP assistance, gross annual income from all household members aged 18 or over must be 120%or below median income, based on how many people reside in the household. Last printed 3/31/2009 - 16 - a.. f cdj. . N 77 FT h r F AW I Li LL Von • �� � t tt �-'"�" r.... _ e. Vii' ui b o cg co C+4 C4 ��''C.F it •.�a` F�::: � 3 7 I� � N o LL LL S .4�w�•�st , �� a � a x r l T,.p; �#•� "�'i :!'':His AGENDA REPORT FOR: City Council March 31, 2009 TO: Gary Crutchfield, C nager Regular Mtg.: 4/6109 Rick White, Community & Economic Development Director FROM: Shane O'Neill, Planner I SUBJECT: SPECIAL PERMIT: Location of a Children's Daycare/Pre-School in a C-1 District. (MF# SP09-002) I. REFERENCE(S): 1. Report to Planning Commission 2. Planning Commission Minutes: Dated 2119/09 & 3/19/09 3. Proposed Resolution II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS: 4/6: MOTION: I move to approve Resolution No. approving the special permit for the location of the Jigsaw Daycare/Pre- School in the 6200 Block of Burden Boulevard, as recommended by the Planning Commission. III. FISCAL IMPACT: NONE IV. HISTORY AND FACTS BRIEF: A. On February 19, 2009, the Planning Commission conducted a public hearing to determine whether or not to recommend a special permit for a Children's Daycare/Pre-School to be located in the 6200 Block of Burden Boulevard. B. Following conduct of a public hearing, the Planning Commission reasoned that with conditions, it would be appropriate to recommend approval of a special permit for Daycare/Pre-School in a C-1 Zoning District. The recommended conditions are contained in the attached March 19, 2009 Planning Commission report and in the attached Resolution. C. No written appeal of the Planning Commission's recommendation has been received. s(d) REPORT TO PLANNING COMMISSION MASTER FILE NO: SP 09-002 APPLICANT: Jigsaw Development LLC. HEARING DATE: 2/ 19/2009 8027 West Entiat Place ACTION DATE: 3/19/2009 Kennewick, WA 99336 BACKGROUND REQUEST: SPECIAL PERMIT: Location of a Children's Daycare/Pre-School in a C-1 District. 1. PROPERTY DESCRIPTION: Legal: The North 160 feet of Lot 3, BSP 2001-08 General Location: 6200 Block of Burden Blvd Property Size: 94,824 square feet (2.2 acres) 2. ACCESS: The site is accessible from Burden Boulevard. 3. UTILITIES: All municipal utilities are available to the site from Burden Boulevard. 4. LAND USE AND ZONING: The site is currently zoned C-1 (Retail Business) and vacant. Properties to the north are developed with the Sunny Meadows Subdivision and are zoned R-1 (Low Density Residential). Properties to the east and west are zoned C-1 and developed with multi-tenant office buildings together with a mini-storage facility. The TRAC facility and the City owned GESA baseball stadium are located to the south. The TRAC is zoned C-1 and most of the ball stadium site is zoned R-1. 5. COMPREHENSIVE PLAN: The Comprehensive Plan designates the site for Commercial uses. Goal LU-3-A encourages the location of daycare facilities in each residential neighborhood. 6. ENVIRONMENTAL DETERMINATION: This proposal has been issued a determination of non-significance in accordance with review under the State Environmental Policy Act (SEPA), Chapter 43.21(c) RCW. ANALYSIS The applicant is proposing to construct a new daycare/pre-school facility on the site in question. The proposed building will be a modular structure treated on the exterior with materials and features to meet the I-182 Overlay District standards. The Applicant is planning on providing daycare and learning services for up to 220 children at any given time. The 9,877 square foot building will contain six classrooms, an administrative office, a kitchen and a nap room. A playground area will be located on the east side of the building adjacent to the mini-storage facility. The ages of the children served will range from 1 month to 5 years. Initial hours of operation will be from 5:00 AM to 7:00 PM Monday through Friday. The site is located on Burden Boulevard 2,820 feet east of Road 68, both of which are arterial streets. Burden Boulevard is fully developed in this area with the exception of sidewalks. Traffic to and from the proposed daycare/pre-school will typically coincide with the morning and afternoon peak traffic through the neighborhood. The 1TE Trip Generation Manual (Volume 7) indicates the daycare/pre-school could generate up to 560 vehicle trips per day. The Applicant is estimating that vehicle trips will be in the neighborhood of 380-400 trips per day if the daycare was occupied to capacity. The proposed site contains 40 parking spaces. A daycare facility of the size proposed requires about 50 parking spaces. Additional parking is available directly to the west, in the Times Square Commercial Center parking lot. The lot in question is part of the same binding site plan which indicates shared access and parking. Daycares/nursery schools are defined as community service facilities and as such are required to obtain a special permit before locating anywhere within the city. Daycare facilities and schools are often located in or adjacent to residential neighborhoods. Daycare and school activities in residential neighborhoods typically do not generate complaints from neighbors. By way of comparison, the C-1 district permits among other uses the development of auto repair shops, car washes, restaurants, taverns, and membership clubs. These uses often are open for business well into the evening and on weekends. INITIAL STAFF FINDINGS OF FACT Findings of fact must be entered from the record. The following are initial findings drawn from the background and analysis section of the staff report. The Planning Commission may add additional findings to this listing as the result of factual testimony and evidence submitted during the open record hearing. 1. The site is zoned C-1 (Retail Business). 2. Daycares/nursery schools are defined by the zoning regulations (PMC 25.12.155) as community service facilities. 2 3. Community service facilities require review through the special permit process (PMC 25.86) prior to locating within the City. 4. The Comprehensive Plan identifies the site for Commercial uses. 5. Auto repair shops, car washes, restaurants, taverns, membership clubs and retail stores are permitted uses in the C-1 district. 6. Restaurants, taverns, membership clubs and retail stores are generally open for business 7 days per week. 7. Business hours for restaurants, taverns, membership clubs and retail stores can extend to 9:00 pm or later. 8. The site proposed for a children's daycare/pre-school is currently vacant. 9. The proposed daycare/pre-school could generate up to approximately 560 vehicle trips per day (including employees) if each child arrived in an individual vehicle. 10. The applicant indicated a maximum capacity of 220 children for the daycare/pre-school. 11. The daycare/pre-school will accommodate children ages 0-5 years. 12. The daycare/pre-school will have up to 25 staff members. 13. The site plan indicates forty (40) on-site parking stalls. TENTATIVE CONCLUSIONS BASED ON INITIAL STAFF FINDINGS OF FACT Before recommending approval or denial of a special permit the Planning Commission must develop findings of fact from which to draw its conclusions based upon the criteria listed in P.M.C. 25.86.060. The criteria are as follows: I) Will the proposed use be in accordance with the goals, policies, objectives and text of the Comprehensive Plan? The site is identified in the Comprehensive Plan for commercial uses. The proposed daycare/pre-school supports Plan Goal LU-3-A which encourages such facilities to be located in neighborhoods. 2) Will the proposed use adversely affect public infrastructure? All municipal utilities are currently available to the proposed site from Burden Boulevard. Connection to City sewer/water and underground power will be required as a part of the permitting process. 3) Will the proposed use be constructed, maintained and operated to be in harmony with existing or intended character of the general vicinity? 3 The intended commercial neighborhood will be developed with commercial buildings. The proposed daycare/nursery school will be housed in a commercial building that must meet the I-182 overlay design standards. In this respect the proposed building will be constructed and maintained in harmony with the intended character of the general vicinity. 4) Will the location and height of proposed structures and the site design discourage the development of permitted uses on property in the general vicinity or impair the value thereof? The daycare/nursery school facility will be a one story building constructed with an appearance similar to adjoining commercial buildings. The County Assessor's records indicate the value of the adjoining residential properties to the north have increased over the past four years. The existing commercial zoning and development has not impaired the value of adjoining residential properties. S) Will the operations in connection with the proposal be more objectionable to nearby properties by reason of noise, fumes, vibrations, dust, traffic, or flashing lights than would be the operation of any permitted uses within the district? Development of the site will eliminate the weeds and dusty conditions that now exist. Traffic to and from the site will correspond to the morning and evening peaks through the neighborhood and will access the site from Burden Boulevard rather than the residential neighborhood from the north. This use will not generate vibrations, noise or fumes that often accompany permitted uses such as car washes, restaurants and taverns. A daycare/nursery-school may be less disruptive to the adjacent residences than other permitted uses due to the fact the daycare/nursery school will be closed on weekends and during evening hours when people tend to be home. 6) Will the proposed use endanger the public health or safety if located and developed where proposed, or in any way become a nuisance to uses permitted in the district? Daycares are similar to schools, which are commonly located in or adjacent to residential neighborhoods where they are generally not viewed as a nuisance. Other uses permitted in the C-1 zone such as car-washes, taverns, nightclubs and restaurants are more likely to be disruptive than the proposed daycare/pre-school. 4 RECOMMENDATION MOTION: I move the Planning Commission adopt the Findings of Fact and conclusions as contained in the March 19, 2009 staff report. MOTION: I move, based on the findings of fact as adopted, the Planning Commission recommend the City Council grant a special permit to Jigsaw Development LLC. for the location of a daycare/pre-school in the 6200 block of Burden Boulevard with conditions as contained in the March 19, 2009 staff report: APPROVAL CONDITIONS 1) The special permit shall be personal to the applicant; 2) The applicant shall comply with all DSHS operational requirements for the daycare; 3) The daycare/nursery school shall not object to the transfer, renewal or issuance of a liquor license for an existing or new establishment within 1,000 feet of the property; 4) All outdoor light fixtures shall be fully shielded in such a manner that the entire light source shall be level or above the edge of the light fixture to limit direct line of sight of a fixture's lamp to the property upon which the fixture is installed; 5) The north edge of the parking lot shall be screened or landscaped to limit vehicle head lights from encroaching on neighboring residential properties; 6) The proposed development and preschool building shall meet all I-182 Corridor Overlay District design standards (PMC 25.58); 7) The special permit shall be null and void if a building permit has not issued by April 1, 2010. 5 .l w - 7 AW ' J ' t xt e4 VKKRM,4'� IN MA Ad s l ��J Qy a •.;«iii'.. >,: rte.:..-^ •Y �x„ _ i. r I •%. t:�"; ':'� ' t ��_ • ' �Ill'3 y:�.r� � 1 I• ` r'�,3?::.:...:� ��Yiro"{F + .,'ir i �'j Y 1 �" - man ,• •.(�'JP'� P ' '.!'�- ""j'^"', ^vt.,—y+''��,��` L 4,,•'T�i��.y. ;��..j^r�. `r y E� `i�s:.�.x�� -, 09 a`dOb z 0 o .� i � N d LL O al w 4-4Q z LL rv-1 s3atl J � � V �w Iii cn E O wn �s V ba NIb'M -W3 89b 09 a`d02i 0 0 U 6f. v � D r C� y w ct � U OC V c a, c � TON 1899 �i � r f 4 I �S • 1 1 ! i i f } i i 1 i `�: '::�':.�'�: ;T.. �..��� :tip,�� .,. - •\`,.+`, i�, .r_�`�:� .\\ ��� .:a,' i any`` .'\:. '� �.`'�,.,'\ `. �� r.�.t. .t\` � .. \..•. ..,'\,, �,.�,\ }��. '�`�•\ ��5...''` \..-� x,Y, - .tom•\. rw:�+ � t •,`,p,�'"'."�,'.bt'.,.\\, �• .�•,t,'�'�,. �..rr' a�.- ~�ii' ,i,'l.-aa�...�\�:¢�,'1\;::atr"�+e�.;=X1,.7 �%� _� i i 1 - r1 t . I t i f � h. IMSAVJ 19 t'. s s w I ae �e At vc I' ac j o► i r t x.ixaa-un I. j I AIITZ)VJ'IOGH3,SMkV-qWV3AVU MOSVY40EL wag IdOi SXV'ld'IVWfUDMI14DdV on 4 ° 4 All, Idie : U 40 i r� :7 r3A' P L-——————— —-- v3ovbol6 Y 5z F1 Do 0: 0 0: Planning Commission Minutes February 19, 2009 A. Special Permit Daycare/Preschool (Jigsaw Development) (6200 Block of Burden Blvd.) (MF# SP 09- 002 Chairman Samuel read the master file number and asked for comments from staff. Staff explained the proposal involved the location of a daycare/nursery school in a C-1 zone. The proposed daycare plans to occupy the north 1/2 of the site located in the 6200 block of Burden Boulevard. Staff discussed surrounding land uses zoning. The site proposal included 40 parking stalls, a playground area and a building large enough for up to 220 children. The Comprehensive Plan (LU3-A) encourages the location of daycare facilities in each residential neighborhood. Daycares are defined as community service facilities in the Pasco Municipal Code and as such are required to obtain a special permit before locating anywhere in the city. It was pointed out that the proposal would be significantly less disruptive to nearby residential properties than other uses permitted in the C-1 zone. Scott Thomason, 8027 W. Entiat Place, Kennewick, WA was present to speak in favor of the proposal. Mr. Thomason explained the teaching staff will be certified with college degrees. Their emphasis will be towards teaching vs. babysitting. Classrooms will be set up with 3 teachers per classroom. The playground will contain jungle gyms and other equipment for learning activities. The facility will also have a commercial kitchen to provide healthy meals. Mr. Thomason will be partnering with the Health Dept. to create healthy menus for the children. Chairman Samuel asked what impact the project would have on neighbors residing next to the facility. Mr. Thomason stated his building would be attractive; hours of operation will be during the day vs. having a nightclub (tavern) or carwash which would have evening traffic. Chairman Samuel asked if the daycare would be open during the weekends. Mr. Thomason stated it would be open Monday thru Friday. Commissioner Little asked about traffic impacts and parking. Mr. Thomason stated the majority of students would come from families that live close by. Additional traffic would not be created since most families would drop off children on their way to work. 1 Commissioner Rose asked for clarification of the qualifications of Mrs. Thomason. Mr. Thomason stated she is a fully credentialed teacher. Commissioner Kempf asked about security measures. Mr. Thomason stated a security system would be installed and the site would be fenced. Chairman Samuel asked what the fencing requirements were. Staff stated the Department of Social and Health Services requires minimum fencing of 4 feet. Mr. Thomason stated he will be in full compliance with any requirements of the City and DSHS. Chairman Samuel asked Mr. Thomason if he would be concerned with the vacant lot in front of his property being occupied in the future by a tavern or similar use. Mr. Thomason stated he has an agreement with the property owner about this issue. Chairman Samuel asked if the access to the property would be through the driveway into Times Square. Mr. Thomason stated yes. Chairman Samuel then asked if the City Engineering Department had reviewed the proposal. Staff stated the Engineering Department was primarily concerned about easements for utilities and construction of the sidewalk along Burden Blvd. Commissioner Little asked if the proposed school/daycare would have precedence over other businesses locating in this area. Staff stated there was not precedence. The School District is the only entity that that can impact liquor licensing. Chairman Samuel asked if the lighting would cause problems for the neighbors. Mr. Thomas stated the lighting would not be excessive. Commissioner Anderson asked what the hours of operation would be. Mr. Thomason stated Monday - Friday from 6:00am - 6:30pm. 2 Chairman Samuel opened the public hearing. Rob Masan, 6308 W. Fenway Drive, spoke in favor of the business. Mr. Mason had some concerns about lighting at night, traffic, parking, and he wondered if owning a firearm would be an issue living next to this facility. Commissioner Anderson stated the restriction was for the possession of firearms on school property not private property. The facility is a commercial business and not a school. Barbara Chaney, 5903 Road 58, was not in favor of the location for this facility and stated Burden Blvd was already congested with traffic. Chairman Samuel questioned staff if the driveway would be on Burden Blvd.. Staff stated there was a joint driveway on Burden Blvd. and another driveway on Robert Wayne Drive. With no further comment, the public hearing was closed. Staff stated the concerns over alcohol sales and lighting could be addressed in the special permit conditions. Chairman Samuel mentioned he would also like clarification on the fence requirements. Chairman Samuel asked if there was a model daycare/facility in the area that could be referenced for the type of landscaping required. Staff stated the 1-182 Corridor standards specify the types and number of bushes/trees required. Chairman Samuel asked if the utilities were sufficient for the site. Staff explained the only concern from the Engineering Department was over easements. The water meter will be out by Burden Blvd.. Commissioner Rose moved, seconded by Commissioner Kempf to close the hearing on the proposed daycare/nursery school and initiate deliberations and schedule adoption of Findings of Fact, Conclusions and a Recommendation to the City Council for the March 19, 2009 meeting. The motion passed unanimously. Staff explained this item would go to the Planning Commission for deliberations and a recommendation to the City Council will follow. 3 PLANNING COMMISSION MINUTES March 19, 2009 A. Special Permit Daycare/Preschool (Jigsaw Development LLC) (6200 Block of Burden Blvd.) (MF# SP 09-0021 Chairman Samuel read the master file number and asked for comments from staff. Staff explained that during the public hearing last month the Planning Commission raised some concerns about the impact of this facility on restaurants serving liquor, the standard language prohibiting objection of issuance of a liquor license from this facility; night lighting and landscaping of a screening hedge or small fence that will prohibit lights from cars reaching into the neighborhood. Chairman Samuel questioned if there was an example of a daycare/school with 250 children in such close proximity to a residential neighborhood. Staff mentioned there is a new school Maya Angelou Elementary, is located in the Columbia Place subdivision. That school is required to place a barrier between the parking lot and the homes to the east for lights, noise, etc. All Elementary Schools are located in the middle of residential neighborhoods with the exception of Captain Gray. Commissioner Anderson moved, seconded by Commissioner Kempf that the Planning Commission adopts the Findings of Fact as contained in the March 19, 2009 staff report. Commissioner Anderson further moved, seconded by Commissioner Kempf based on the Findings of Fact as adopted, the Planning Commission recommend the City Council grant a special permit to Jigsaw Development LLC for the location of a daycare/pre-school in the 6200 block of Burden Boulevard with conditions as contained in the March 19, 2009 staff report. Staff stated this item would go to the City Council at their first regular meeting in April. Staff briefly explained the appeal process. RESOLUTION NO. A RESOLUTION ACCEPTING THE PLANNING COMMISSION'S RECOMMENDATION AND APPROVING A SPECIAL PERMIT FOR THE LOCATION OF THE CHILDREN'S DAYCARE/PRE-SCHOOL AT THE 6200 BLOCK OF BURDEN BOULEVARD WHEREAS, Jigsaw Development submitted an application for a Special Permit for locating a Children's Daycare/Pre-School at the 6200 Block of Burden Boulevard on January 30, 2009; and, WHEREAS, the Planning Commission held a public hearing on February 19, 2009 to review Jigsaw Development's proposed daycare facility. WHEREAS, following deliberations on March 19, 2009 the Planning Commission recommended approval of a Special Permit for the location of the Children's Daycare/Pre-School in the 6200 Block of Burden Boulevard with certain conditions; NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: 1. That a Special Permit is hereby granted to Jigsaw Development LLC. for the location of the Children's Daycare/Pre-School at the 6200 Block of Burden Boulevard (Lot 1, BSP 2009-01) under Master File # SP09-002 with the following conditions: (a) The special permit shall be personal to the applicant; (b) The applicant shall comply with all DSHS operational requirements for the daycare; (c) The daycare/nursery school shall not object to the transfer, renewal or issuance of a liquor license for an existing or new establishment within 1,000 feet of the property; (d) All outdoor light fixtures shall be fully shielded in such a manner that the entire light source shall be level or above the edge of the light fixture to limit direct line of sight of a fixture's lamp to the property upon which the fixture is installed; (e) The north edge of the parking lot shall be screened or landscaped to limit vehicle head lights from encroaching on neighboring residential properties; (f) The proposed development and preschool building shall meet all I-182 Corridor Overlay District design standards (PMC 25.58); (g) The special permit shall be null and void if a building permit has not issued by April 1, 2010. AGENDA REPORT TO: City Council April 1, 2009 FROM: Gary Crutch ty Manager Regular Mtg.: 4/6/09 SUBJECT: Disposal of Forfeited Firearms I. REFERENCE(S): 1. Memorandum to City Manager from Police Chief dated 3/2/09 2. Proposed Resolution II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 4/6: MOTION: 1 move to approve Resolution No. , relating to disposition of firearms. 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 #1, 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) Following discussion at the March 9 workshop meeting, staff prepared the attached resolution to reflect consensus of the Council deliberation. 8(e) PASCO CITY HAI, ?_ PPC EIVE-r) MAR 0 3 20()9 �Or7M UNITY 4oerTa C1!Y��tH1JNciFR'�, OFFICE pASC Memorandum Office 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 fwearms—Disposition—Confiscation (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 63.40.010; may be 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,tune 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 firearms 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, 1993, 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 Sheriff's Office Procedure: A firearm is subject to auction in the following circumstances: 1. Forfeited by the court 2. The owner fails to pick up 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 wonted 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. RESOLUTION NO. A RESOLUTION relating to disposition of firearms. WHEREAS, the Pasco Police Department occasionally receives private firearms through forfeiture and other means, as provided by law; and WHEREAS, the City Council has considered the options available under law for the disposition of such firearms and finds that such firearms will bring the highest financial return to the city if sold only to licensed firearms dealers; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: Section 1: That all firearms declared surplus by action of the City Council shall be sold in accordance with state law via auction by a licensed firearms dealer only to licensed firearms dealers. Section 2: The Police Chief shall advise the City Council annually in writing of the number of firearms destroyed, disposed via auction and the proceeds therefrom. PASSED by the City Council of the City of Pasco this day of , 2009. Joyce Olson, Mayor ATTEST: APPROVED AS TO FORM: Sandy Kenworthy, Deputy City Clerk Leland B. Kerr, City Attorney