HomeMy WebLinkAbout2011.04.25 Council Workshop Packet AGENDA
PASCO CITY COUNCIL
Workshop Meeting 7:00 p.m. April 25, 2011
1. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance.
3. VERBAL REPORTS FROM COUNCILMEMBERS:
4. ITEMS FOR DISCUSSION:
(a) Pasco Landfill Project Presentation. (NO WRITTEN MATERIAL ON AGENDA)
Presented by Barbara Smith, Harris and Smith Public Affairs, and Chuck Gruenenfelder,
Department of Ecology.
(b) Sewer Service to Burbank Area:
1. Agenda Report from Gary Crutchfield, City Manager dated April 19, 2011.
2. Vicinity Map,
3. Letter from Port of Walla Walla to Pasco City Manager dated 7/2,110.
4. Memorandum from CH2MHill to Ahmad Qayoumi dated 11/14/10.
5. Memorandum from City Manager to City Council dated 4/7111.
(c) Issuance of Note Funding LID 146 Expenditures:
1. Agenda Report from Dunyele Mason, Finance Manager dated April 21, 2011.
2, Ordinance,
3, Local Iinprovamcnt District No. 146 Installment Note.
4. Vicinity Map.
5. OTHER ITEMS FOR DISCUSSION:
(a)
(h)
(c)
6. EXECUTIVE SESSION:
(a)
(b)
(c)
7. ADJOURNMENT
REMINDERS:
1. 4:00 p.m., Monday, April 25, Ben-Franklin Transit Office — Hanford Area Economic luvestment
Fund Committee Meeting. (COUNCILMEMBER AL YENNEY, Rep.; SAUL MARTINEZ, Alt.)
2. 5:30 p.m., Tuesday, April 26, 4601 N. Horizon Drive — McGee Elementary School Science Fair
Judging. (MAYOR MATT WATKINS)
3. 7;30 a.m., Thursday, April 28, 7130 W. Grandridge Blvd— Tri-Cities Visitor & Convention Bureau
Board Meeting. (COUNCILMEMBER MIKE GARRISON,Rep.; TOM LARSEN, Alt,)
4. 3:30 p.m., Thursday, April 28, Franklin County Emergency Management Office — Franklin County
Emergency Management Board Meeting. (MAYOR MATT WATKINS, Rep.;
COUNCILMEMBER TOM LARSEN, Alt.).
5. 4:00 p.m., Thursday, April 28, 7130 W. Grandridge Blvd — TRIDEC Board Meeting.
(COUNCILMEMBER MIKE GARRISON, Rep.; TOM LARSEN, Alt.)
6. 5:30 p.m., Thursday, April 28, 710 W. Court Street—Benton-Franklin Community Action Committee
Meeting. (COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK,Alt.)
7. 9:00 a.m., Friday, April 29, Port of Pasco Office — Columbia River Crossing Study Tri-Cities
Meeting, (COUNCILMEMBER BOB HOFFMANN)
8. 5:00 p.m., Friday, April 29, TRAC — Hispanic Academic Achievers Program. (MAYOR MATT
WATKINS)
AGENDA REPORT
TO. City Council 0 April 19, 201 1
,-I i
FROM: Gary Crutehfi Manager Workshop Mtg.: 4125111
SUBJECT: Sewer Service to Burbank Area
1. REFERENCE(S):
1. Vicinity Map
2. Letter from Port of Walla Walla to Pasco City Manager dated 7/2/10
�. Memorandum from CH2MHi11 to .�lunad Qayoumi dated ] 1/14110
4. Memorandum from City Manager to City Council dated 4/7111
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
4/25: Discussion
111. FISCAL IMPACT:
See Reference No, 4
IV. HISTORY AND FACTS BRIEF:
A) The city received an inquiry from the Port of Walla Walla in July 2010, seeking
an agreement to allow the Port of Walla Walla to connect its proposed sewer
system to the City of Pasco's sewer plant. The Port's primary purpose is to
provide sewer service within its business park lands, presently owned or being
acquired by the Port in the vicinity of a new SR12 interchange being constructed
over the next year or two. In essence, the Port proposes to install all collection
lines and pump stations to serve the Port of Walla Walla land (in Burbank area),
install a force main across the Snake River and connect to Pasco's southeast trunk
line near Road 40 East. From there, wastewater would flow to the Pasco sewer
treatment plant located at Maitland and Ainsworth (see references 2 and 3).
B) A City Council committee of Watkins, Hoffmann and Francik accompanied the
City Manager and Public Works Director in meetings with Port of Walla Walla
representatives through the past fall and winter. Several issues consumed
considerable attention through the committee meetings; most notably the potential
secondary effects of industrial land competition, tax base loss and residential
impacts to Pasco (see reference 4).
V. DISCUSSION:
A) From a purely engineering standpoint, provision of Pasco's wastewater plant
capacity for Burbank is doable and sensible (more cost effective than building and
operating a new separate plant and discharge system to the Columbia River).
Major hurdles, however, are found in the policy issues associated with the
concept, as discussed in reference 4 and outlined specifically below:
Should Pasco facilitate creation of sewer-served industrial sites that will
compete with ,similar sites in Pasco (on the SR121395 corridor)? Certainly,
competing industrial sites are not desirable for Pasco, However, if the Port
can build its own plant, competing, sites may exist anyway (though sewer cost
would he substantially higher, absent federal/state grant funds to reduce
capital cost recovery). However, if Burbank's sewer service from Pasco was
limited to non-industrial uses (i.e., retail and housing), the competition risk
would be greatly diminished (if not eliminated).
4(b)
• Can the potential competition effect be adequately mitigated? Ideally, Pasco
and the Port would create a "tax base sharing" agreement whereby a fixed
percentage of new tax generated by sewer-induced investments would be
shared with Pasco agencies (city, county, schools, etc.). The next best
rechanism is a Payment in Lieu of Taxes (PILT); that mechanism can be as
simple or complex as the parties may agree. Whether it is sufficient in lieu of
a tax base sharing agreement is a policy question for Council.
• Will more employment in the Burbank area result in more housing demand
in Pasco, in turn resulting in more demand for non-existent school space in
Pasco (and without the industrial tax base associated with the jobs)? The
fundamental conflict inherent in this question is the tax-base issue. That is,
when Pasco realizes housing investments without the industrial tax base of the
employer (e.g., Tyson Foods, Broetje Orchards, Boise Cascade, etc.), the
Pasco school system suffers the financial consequence (most notably, space
for enrollment growth).
B) Staff recommends Council discuss the concept and associated impacts and policy
issues. It is recognized that such consideration may require multiple Council
workshops to arrive at a conclusion as to whether or not to go forward with any
agreement to provide sewer plant capacity for the Burbank area.
PASCO WASTE WATER TREATMENT PLANT
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ROAD 40 EAST SEWER INTERCEPTOR
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Walla Walla Regional Airport
WALL A WALLA Walla Walla, Washington 99362-2269
Phone: (509) 525-3100 FAX: (509) 525-3101 www.portwallawalla.com • www.wallawaUaairport.com
PASCO CITY HALL
July 2, 2010 PECEIVEC
JUL 0 6 Zulu
Gary Crutchfield
City Manager Y p FICEERt�
City of Pasco
525 N_ Third Ave.
Pasco, WA 99301
Dear Gary:
Thank you for visiting with me by phone concerning the Port of Walla Walla's interest in
connecting to the City of Pasco's sewer system. The Port would like to develop a business park
for the Burbank community in the western portion of Walla Walla County. A major obstacle is
the lack of a sewer system in Burbank.
The Port would appreciate the City of Pasco's favorable consideration to allow the Port of Walla
Walla to connect to its sewer system. The concept would be for the Port, at its sole cost, to
operate a central lift station at the proposed business park and pump raw or screened wastewater
to the City of Pasco for treatment. Connection to the City of Pasco would involve a Snake River
pipeline crossing along the river floor. A sanitary sewer tie-in to the City of Pasco collection
system would occur in the vicinity of the Big Pasco Industrial Center and Sacagawea State Park.
Enclosed is a preliminary map showing the proposed route along with the estimated cost the Pori
would incur.
Also enclosed are flow and load projections the City needs to assess our impact on your sewer
treatment facility. The Port understands the City will need to charge a capacity fee to the Port.
In addition based on your current codes the Port will be charged a 50% sewer treatment
surcharge in consideration we are outside the city limits.
The Port is willing to meet with the City to discuss any technical or policy issues as you analyze
this request. We believe both parties could benefit from this arrangement and would alleviate the
need to have multiple treatment facilities in close proximity to one another_ Thank you for your
consideration.
ncerely,
ames M. Kuntz
Executive Director
cc: Port Commissioners
Ronald W. Dunning, Commissioner
Michael Fredrickson, Commissioner James M.Kuntz,Executive Director
Paul H. Schneidmiller, Commissioner
TABLE 5-3
ALTERNATIVE A
CITY OF PASCO SERVICE
SYSTEM COMPONENT SIZEICAPACITY ESTIMATED SYSTEM
COST COST
Headworks
Screening Structure $80,000
Mechanical Screen 12-inch/inclined 85,000
H2S Control Tank and Feed 45,000
System
Headworks Accessories 20,000
$230,000
Lift Station
Wetweli 6-foot-diameter $18,000
Valve Vault 15,000
Valves, Fittings, Hatches, etc. 50,000
Triplex Pumps and Accessories 50-200 gpm VFD 95,000
Pump Control Panel 20,000
$198,000
Forcemain 6-inch Pressure Main 6,500 feet $260,000
Snake River Crossing 480,000
Gravity Transition to Pasco Sewer 45,000
$785,000
Miscellaneous
Yard Piping $15,000
Site Work 1 Mitigation 45,000
Electrical Supply and Controls 30,000
Emergency Generator 50,000
$140,000
Subtotal $1,353,000
Sales Tax(8.0%) $108,200
Subtotal $1,461,200
Contingency(15%) $203,000
Engineering, Contract Administration, Legal (20%) $271,000
Pipeline Easement $80,000
Pasco Capacity Purchase TBD
TOTAL COST ESTIMATE
Notes:
1. Cost to buy into Pasco wastewater utility to be determined and added to this estimate.
2, Connection to 30-inch East Pasco sewer at S Road 40 E/D Street.
611112010
SIDOCSV✓JW PORTWV385.221 BURBANK WASTEWATERITABLE 5-3 ALT A REV.xlsx
BURBANK BUSINESS PARK
FLOWS AND LOADS
Total Flow Total BOD Total SS
(gpd) (lb/day) (lb/day)
PHASE 1 Average Daily Flow(gpd) 30,200 82.3 82.3
Maximum Monthly Flow(gpd) 45,300
Maximum Daily Flow (gpd) 51,000
Peak Hour Flow (gpm) 76
PHASE_2 Average Daily Flow(gpd) 78,400 83.2 832
Maximum Monthly Flow (gpd) 117,600
Maximum Daily Flow(gpd) 132,300
Peak Hour Flow(9prn) _ 196
TOTAL PHASE 1 + 2 Average Daily Flow d 108,600 165 165
_Maximum Monthly Flow(gpd) 162,900
Maximum Daily Flow (gpd)-. _183,300
Peak Hour Flow (gpm) 272
S:000SIWW POR'RWwH-221 BURBANK WASYEWATERIFLOWS AND LOADSAIV
In
CQNN�CT j •
TO PASCO •� .
SEWER ` ! •�4'�r — •
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SCREEN AND
LIFT STATION
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PORT OF WALLA WALLA FIGURE
o �;�6pn�de�rson BURBANK BUSINESS PARK
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assoc
CONNECT TO PASCO
MEMORANDUM CH2MHILL
Port of Walla Walla Sewer Connection Update
To: Ahmad Qayoumi, P.E. - Director of Public Works, City of Pasco
Copies: Wally Hickerson,P.E.
FROM: Thomas J. Helgeson, P.F.
DATE; November 14, 2010
In August 2010, CH2Nl HILL prepared a memorandum for the City of Pasco discussing
potential impacts to the Southeast Trunk Sewer and Wastewater Treatment Plant resulting
from the proposed connection of the Port of Walla Walla (POWW).That memorandum,
entitled "Southeast Trunk Main Connection" described the following impacts:
• Effect on treatment and conveyance capacity
• Effect on treatment and conveyance capability
• Potential connection and usage charges
In the interim, the POWW has proposed a Framework Agreement covering the addition of
up to 300,000 gallons per day (gpd) Maximum Monthly Design Flow (MMDF)of sanitary
sewage meeting the influent limits of the City. In the earlier proposal, the POWW
anticipated an ultimate flow contribution of 108,000 gpd Average Annual Daily Flow
(AAD17) and 162,900 gpd MNfDF.
The current POWW proposal also differs in that there is no discussion of discrete phases.
Presumably, flows will develop to the full 300,000 gpd in a gradually increasing manner or
in a stepwise manner as significant new uses are cormected.
The purpose of this memo is to update the conclusions of our earlier memorandum to reflect
the increase in proposed flows. As in the earlier memorandum, all calculations are based on
the full ultimate flow.
Effect on Wastewater Treatment and Conveyance Capacity
The Pasco tiVWTP is designed to treat 8.0 million gallons per day (Ingd) of domestic and
pre-treated 'industrial wastewater to the standards required by the Washington Department
of Ecology. Currently, flows are averaging approximately 4,0 to 43 mgd, or roughly 50% of
design flow.
The additional flow proposed by the Port represents approximately 3.75° of the WWTP's
design capacity of 8.0 rngd, 'The SE Pasco Trunk was designed for a capacity of 5,000 to 6,200
gpm and the assumed peak flows proposed by the Port could represent as much as 10`io of
this capacity (based on a 2.41 ratio of peak flow to MMDF). Without knowing the proposed
pumping facility characteristics, however,actual flows will likely differ from this value.
TCN20101114-POWW_CONNEC t ION_UPDATE,DOCX 1
PORT OF NALLA WALLA SEWER CONNECTION UPD&TE
Since the actual flows will be dependent on the actual pump station configuration and
operation, the City should request that the design be subject to their review in order to
avoid potential conveyance capacity concerns.
Effect on Wastewater Treatment and Conveyance Capability
The WWTP was designed, and operates, based on influent flow characteristics of a typical
domestic wastewater (250-300 mg/l, BOD, 250-300 rng/L'rSS,30-40 mg/L TN, 6-8 mg/L
TP, no appreciable contribution from metals and other exotic components).Significant
variance from these values for new discharges could interfere with normal operations and
treatment efficiencies at the VVVVTP,
In recognition of these potential interferences, the limitations on discharges to the public
sewers are codified in sections 13A.52.190 et seq of the Pasco Municipal Code. This code is
mostly qualitative in nature,prohibiting those discharges which could interfere with
treatment and that could pose significant safety and/or operational hazards. Specific
quantitative limitations include:
• Wastewater ply outside the range of 5.5 to 9.0
• BOD exceeding 300 mg/L
• Temperature greater than 40°C
• Other specific exclusions
POWW's revised proposal states that"(wlaste strength will be that of normal strength
municipal wastewater" and such contributions should not impact the City's treatment
capabilities. It should be.noted that the earlier proposal did indicate nominally higher BOD
concentrations that those allowed by City Code, but this appears to no longer he cu-iticipated.
Given that there will potentially be industrial and significant contributors of regulated
compounds, the POWW will be required to comply with the City's requirements. If
consistent high-strength wastewater is conveyed to the City's system, additional surcharges
would apply. Accordingly, the final agreement should not preclude future surcharges.
From an operational perspective, the flows proposed by the port connection represent
relatively small volumes that will be pumped thxough a 6,500 foot 6-inch forcemain. As a
result, two concerns arise relative to operations;
• At low proposed pump flows(50 to 200 gpm), the transit time of the sewage from
the Port pump station to the SE Pasco Trunk would range h-om 47 to 193 minutes
PLUS the Iag time between pump starts. This could allow septic conditions to arise
inside the forcemain which could result in increased odors and treatment difficulties.
• At the low pipeline velocities (ranging from 0.56 to 2.26 feet per second), the
forcemain could be subject to clogging.While it is anticipated that maintenance of
this line will remain POWW's responsibility, this will still affect the level of service
to the ultimate customer.
In addition,the revised proposal does not provide sufficient additional information as to the
nature of the proposed waste stream, sa it is not possible to determine whether additional
actions, charges, or pretreatment may be required. A disclosure of anticipated discharges
TCAJ201DI114,POW'N..CONNEC7ION-UPQATE,DOCX 2
PORT OF WALLA WALLA SEWER CONNECTION UPDATE
and connecting entities should be provided before a final determination is made on
treatment impacts.
Connection and Use Charges
Exhibit l provides an estimate for the connection and use charges for the Port's proposed
connection revised to show a non-phased approach and the larger proposed flows.
The proposed connection represents a condition not included in Pasco's Comprehensive
Sewer Plan as the Port has not been considered within the service area for planning
purposes. As such,the connection represents an impairment of capacity already committed
(albeit at a planning level only). To determine the baseline value of this impairment, the
capital costs of the WWTP expansion and the value of the SF:Pasco Trunk are considered.
These costs ($28,000,000 and $3,100,004 respectively)have been adjusted to reflect the
increase in construction costs since the projects were built, As is typical for such price
adjustments, the Engineering News Record Construction Cost Index for August 2010 was
compared to that for the year 1995.
'The cost of conveyance and treatment of the flows are consistent and proportional to those
currently incurred by the City. Current operating and maintenance costs are based on the
budgeted amounts for the current year.The current monthly use rates for commercial
connections are$34.95 plus$1.29/100 cubic feet over 1000.There is no surcharge in the code
for commercial accounts outside the City (unlike residential and Hotel/Motel),
7CAi20101 1aPaWw CON NEC,7I0N_JPOATF.DOCX g
PORT OF'NALLA WALLA SEWER CONNECTION UPDATE
EXHIBIT 2
Proposed Connection and Use Charges
Port of Walla Walla
Connection Charge:
Capital Cost,WWTP capacity f1)(3) $45,334,000
%of capacity impaired by Pori 3.75%
T,eatrnem capacity cost share $1,700,000
Capital Cost, 5E Trunk capa:ity r�it3i $5,019,000
carrying capacity at peak flow 10.0%
Conveyance capacity cost share $501,000
Total Connection Charge $2,201,000
Use Charge:
Current 0&M cost,treatment(41 $1,497,876
Cost factor for treatment,annualr $56,170
Current O&M cost,conveyance r°' $573,457
Cost factor for conveyance,annual''5j $57.646
Current O&M cost,administration(4' $1,511,350
Cost factor for administration,annual c5f $4,800
Total Use Cost Factors,annual $118,616
r"Treat~nent Capita!cost based on most recent upgrade to facility, which enables
this connection
1 21 Conveyance Capital Cast based on cost of construction at$101inch
diameter/foot
(3" Capital cost adjusted for increase in construction costs(ENR Index 1995=
5471,August 2010= 8858)
(d) O&M costs based on current year budget amounts
�5l Use charge cost factors based on capacity percentages abovo for treatment
and collection, administrative based on estimated 48 hours per year at a
burdened labor cost of$1001hour
The values shown in Exhibit 1 are based on the assumptions stated in the memorandum and
do not include potential additional surcharges based on wastewater quality. before any final
determination is made as to any surcharges resulting from the wastewater characteristics,
the Port should provide a more detailed breakdown on the anticipated connections and
their resulting waste streams as they relate to other potentially interfering compounds,
We greatly appreciate the opportunity to provide this information and are available to
discuss any comments or questions you may have.
TCA0101114,POWW_CONNECTION_UPDATE.DOCX 4
MEMORANDUM
April 7, 201 1
TO: City Council
FROM: Gary Crutchfield, City Manager
RE: Sewer Service to Burbank Area
In response to a July 2010 request by the Port of Walla Walla, Mayor Watkins appointed an ad-hoc
committee (composed of himself, Ms. Francik and Mr. Hoffmann) to join the City Manager in
exploring with Port of Walla Walla officials the possibility of providing sanitary sewer service to
the Burbank area. Through several meetings over the course of eight months, the committee and
staff concluded that sanitary sewer service could be provided relatively easily, from an engineering
standpoint. It also appears to be financially advantageous to the Port of Walla Walla to obtain
service from Pasco, versus the option of permitting, constructing and operating its own small sewer
system. The major hurdle, however, is found in the potential secondary considerations, most
notably "local tax base competition."
POLICY CONCERNS
Pasco has significant amounts of industrial land in its eastern portion along SRI (the same
highway serving the Burbank, area) that are already served by city sewer or readily served by the
city's sewer system. That urban service is an attribute sought by most industrial investments. If
Pasco provides sewer service access to Burbank, the Port of Walla Walla will naturally market its
landholdings for commercial/industrial development with sewer service available. In effect, then, a
sewer service agreement from Pasco would create more competition for industrial investment in the
SR12 corridor at a time when Pasco has much industrial land to market itself and when the Pasco
community is in such dire need for industrial investment (to increase its tax base, particularly with
respect to school funding), (See Exhibit A, Possihle Property Tax Effects.)
An additional concern is the potential for new industrial jobs in Burbank to create more residents in
Pasco, While this is not a problem on the surface, the creation of more homes and school-aged
children for the Pasco School District without the additional industrial tax base is clearly contrary to
the Pasco community's goals. Candidly, the existing Tyson and Boise Cascade industrial plants in
Burbank are long-standing; examples of why Pasco's "assessed value per capita" is so much lower
than other communities (Pasco receives the homes/apartments tax base while Walla Walla County
gets the industrial tax base without the "people costs").
Extensive discussion between the Council committee and Port of Walla Walla officials focused on
the potential for the sewer service to cause more industrial investment in Burbank at the expense of
Pasco (in terms of'tax base). The obvious solution of"tax base sharing" was rejected by the Port, as
the fort could not convince the other taxing entities (Walla Walla County, school, fare district) to
share any property tax growth that might result from sewer induced investments in Burbank.
Ultimately, the City committee concluded that a Payment in Lieu of Taxes ("PILT") might be
sufficient in lieu of a tax base sharing agreement. The PILT would be a fee separate from (and in
addition to)the fee for sewer usage and would be received by the City's general fund as
compensation "in lieu of properly tax" the city's general fund might receive if the development was
located in Pasco rather than Burbank. Rather than attempt to calculate the PILT each year based on
actual tax values of new development in Burbank each year, the PILT could equal 100% of the
monthly sewer fee with an appropriate "floor" or minimum annual payment.
TENTATWE AGREEMENT CONCEPT
The committee recommends City Council consider the tentative agreement reached with Port of
Walla Walla representatives (Exhibit B) as discussed below.
• Term: the 75-year term, though on the "high end" may be reasonable, given the nature of the
utility service (relatively permanent) and the significant investment to be made by the Port,
in the form of its own pipelines, pump stations and the Snake River crossing. One should
also remember that the Port will pay monthly sewer charges based on rates likely to increase
over time and which will include any expenditures by the City necessary to upgrade the
sewer plant over that period of time.
• Capacity:
• Plant: reservation of 300,000gpd represents 3.75% of existing total capacity of the
sewer plant; it represents about 12% of current unused plant capacity, Given the
likelihood of a second sewer plant to serve the growing northwestern portion of the
City, reservation of 300,000gpd at the old plant should not be a problem over time.
• Trunk Line: reservation of 300,000gpd represents 10% of existing total capacity of
the southeast trunk line, Given the likelihood that most users in Pasco's industrial
area (east of Oregon Avenue and south of Lewis Street) will be modest users of the
sewer system, the Port's reservation should not prove problematic over time. Should
a significant user in Pasco unexpectedly require more trunk capacity, it is possible to
duplicate the southeast trunk line to add capacity (though wstly).
• Capacity Costs: both the plant and trunk line investments have been adjusted using
engineering construction cost standards to reflect 2010 values; plant: $45 million;
trunk line: $5 million. Applying the respective percent of design capacity resen ed
for the Port, respective cost shares are $1.7 million for the plant and $500,000 for the
trunk line, or$2.2 million total. Given that development of sewer users will take
considerable time and will likely be gradual, the Port prefers to purchase the capacity
in blocks over time. To accommodate that, the committee recommends three blocks
of 100,000gpd each, be offered at a lump sum of$750,000/ea. In recognition of the
extended time it may take for the Port to utilize the second or third blocks, the
$750,000 price should be adjusted by the Seattle CPI, but not to exceed 511/o annually.
• Sewer Use Costs: ordinarily, sewer service outside the city requires a surcharge of 50%.
However, in this case, the committee recommends the Port be charged the same commercial
use rate as if the user was located in the City. This recommendation is made in
consideration that the Port will install and maintain all collection lines,pump stations, etc.,
and will bill their customers; thus, the Port will, in effect, be a wholesale customer in the
city and the City avoids much of the operations costs (other than treatment at the plant). The
rate charged the Port will adjust over time just as the City adjusts its sewer use rates over
tithe.
• PILT: as discussed previously, the PILT is the committee's attempt to offset the potential
risk of competing industrial investment in Burbank that might be occasioned by extension of
sewer service. The PILT, at $2,000 per month minimum, is likely not to grow for an
extended period of time, barring a major user of the sewer service. Unlike the sewer use
charges, the PILT payments would go to the general fund, as compensation for potential loss
of property tax opportunity.
• Service Area: the initial service area for the agreement is that portion of Burbank lying south
of the McNary Wildlife Refuge (see Exhibit Q. it includes a current mix of moderate value
residential development, a public school complex and a few small industrial facilities. The
Port expects to accommodate commercial development interest in the vicinity of the new
SR12 interchange at Humorist Road as well as potential industrial users in the vicinity of
SR 12 and SR 124. Service to existing and potential residential developments is possible, but
not nearly as likely as the business interests, The Port desires the possibility of adding
Burbank Heights (above or north of the McNary Wildlife Refuge) to the service area; given
the strong likelihood that all such development in that area would be residential, that
potential should present no concerns to Pasco.
GC/tlz
Attachments
EXHIBIT A
Possible Property Tax Effects
(re: Burbank Sewer Service)
Pasco Franklin ` PSD Port of Total
County ! Pasco
1.64 b: ( - .34 _10 9
Gas Station./Mini-Mart
($.5M) 985 820 3,320 170 5,295
Retail Strip Center
lOksf(SI.0m) L 1,970 1 1,640 6,640 340 10,590
Warehouse
50k sf($3.5m) 6,895 5,740 23,240 1,190 37,065
100k sf($6.0m) 11,820 9,840 39,840 2,040 63,540
Processing Plant
IOR sf $8.0m 15,760 13,120 53,120 2,720 84,720
Equipment (S 10.0m) 19,700 16,400 1 66,400 3,400 105,900
$29m 571130 47,560 1 192,560 9—,8-6 0--F 307,110
EXHIBIT B
Sewer Contract Concept
• Interlocal Agreement
• Term: 75 years
• Capacity:
City commits 300,000 gpd capacity of existing sewer plant and southeast trunk line; current
value at $2.2 million. Port of Walla`'Walla (PWW) purchase first 100,000 gpd block of
capacity ($750,000) within 12 months of agreement; failure to timely consummate purchase
terminates agreement. Payment of$750,000 purchase may be made in equal amount
payments of$250,000 over three years. Additional blocks of capacity to be purchased by
PWW in 100,000 gpd increments at updated value [5750,000 x Seattle CPI (not to exceed
5% annually) 1112 to date of block purchase]; payment may be made in equal annual
payments over three years.
• O&M:
P\kV install, operate and maintain all collection lines, pump stations, force main and other
appurtenances necessary to collect mid transport sewage from Burbank service area, across
Snake River,to point of connection at Pasco southeast trunk line.
• Sewer Use Billing:
Metered at point of connection with southeast trunk line to measure use; city to bill PWW
monthly as follows:
+ Actual use to be billed at published rate applicable to Pasco commercial/industrial users,
but not less than $500 monthly; provided the minimum shall be $300/monthly for the first
two years or until the first user is connected to the PWW systen.
+ Each monthly bill shall include a"PILT (payment in lieu of taxes) Surcharge" equal to
100% of the respective monthly sewer use bill, but not less than $2;000 monthly.
• Service Area: (see map)
• Operational Conditions:
+ City has unrestricted access to inspect the conveyance system owned and operated by the
Port.
• The City standards will govern conveyance system from the lift station to the gravity
manhole, where ownership and maintenance changes.
• PNVW is responsible for maintenance of the conveyance system.
• Water quality test at the City's discretion.
• City to have unrestricted access to inspect the pump station.
• City reserves the right to review new projects within PWW early in the process for
wastewater review and compliance with city wastewater standards.
• City wastewater standards (constituents; maximum strength; etc.) shall apply to entire
system.
EXHIBIT B
■ Design/Construction:
• An access vault needs to be constructed at a manhole before it changes to gravity system
that will include a flow meter and sampling station.
• The transition from forcemain to gravity needs to occur at the earliest possible location.
From the manhole that transitions from forcemain to gravity, the City will determine Che
size of the gravity pipe.
• PWW is responsible for purchasing the flow meter.
Pu'W to complete design of the system that will be reviewed and subject to approval by
the city.
• PWW is responsible for obtaining any necessary right-of-way, easements and permits to
complete construction.
■ Termination: (?)
EXHIBIT C
Burbank/Burbank Heights
Coordinated dater System Plan
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LEGEND
Class A
(2 to 25 Connections) / >
Critical Water Supply
Service Boundary �.
Port of Walla Walla
Proposed Retail C o4/
Service Area
r _ Public Water District 0%6y
Serving More Than Port Of y
", a Walla
25 Connections
Burbank Rural Activity Center Prorosed Whotq ale Sp l' Ietc I.Wom
&Port of Walla Walla Proposed \ i l I
Wholesale Service Area a ✓~
Wildlife Refuge t
Disclaimer
The data contained in Walla Walla County's Geographic Information System(GIS)is subject to constant change.Walla Walla County does not guarantee that the information
presented is accurate,precise,current or complete.All data contained in the Countys GIS is provided by the County AS IS without warranty of any kind,implied or expressed,
By proceeding to use the Countys GIS,each user agrees to waive,release and indemnify Walla Walla County,its agents,consultants,contractors or employees from any and
all claims,liability,actions,or causes of action for damages or injury to persons or property arising from the use or inability to use Walla Walla County's GIS data.
AGENDA REPORT
FOR: City Council April 21, 2011
I
TO: Gary Crutchfiel t anager
Rick Terway, A ministrative& C Ity Services Director
FROM: Dunyele Mason, Financial Services Manager Workshop: 4/25/2011
Regular Meeting: 5/2/2011
SUBJECT: Ordinance approving issuance of Note funding LID 146 expenditures
1. REFERENCE(S):
1. Ordinance
2. Local Improvement District No. 146 Installment Note
3. Vicinity Map
11. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
12/13: MOTION: I move to approve Ordinance No. relating to
Local Improvement District No. 146 fixing the amount, form,
date, interest rate and maturity of the Local Improvement
District No. 146 installment note; providing for the purchase of
such note by the city from funds on deposit in the fire pension
fund and fixing the interest rate on Local Improvement District
No. 146 assessment installments.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A) LID 146 was formed by Ordinance No. 3932 on November 3, 2009.
B) The LID included improvements to Elm Avenue north of Alton Street and south
of Lewis Street; Sycamore Avenue, Hugo Avenue, Waldemar Avenue and Cedar
Avenue north of `A' Street and South of Butte Street: and Butte Street east of
Sycamore Avenue and ,vest of Cedar Avenue. Improvements included street
widening, curb, gutter, sidewalks, stoma drainage, and street lighting.
C) Construction work is now complete. The final assessment roll was approved by
Ordinance No. 3991 on February 7, 2011 for $124,673.
D) 30 day interest free letters were mailed on February 20, 2011. Per notification,
the 30 day interest free period expired on March 22, 2011.
E) Due to the cost of debt issuance and the size of the debt issuance, the city has
opted to fund Local Improvement District No. 146 internally with a ten year
installment note rather than issuing an external bond and set the assessment
collections for the same ten year term.
F) The collections of pre-payments as of April 21, 2011 for Local Improvement
District No. 146 is $35,322 leaving a balance of $$9,351 to be funded by the
installment note.
V. DISCUSSION:
A) The interest on the installment note was set at the 10 year U.S. Treasury rate of
3.56 rounded to 3.6%.
B) The interest on the assessments includes a 0.5% administrative and processing fee
for a total rate of 4.1%.
C) On April 11, 201 i the Fire Pension Board voted and approved the use of funds to
invest in the ten year Local Improvement District No. 146 installment note at a
rate of 3.6%.
D) Staff recommends the approval of the issuance and purchase of the installment
note and setting of the interest rates for the note and assessments.
4(c)
ORDINANCE NO.
AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 146
FIXING THE AMOUNT, FORM, DATE, INTEREST RATE AND MATURITY OF
THE LOCAL IMPROVEMENT DISTRICT NO. 146 INSTALLMENT NOTE;
PROVIDING FOR THE PURCHASE OF SUCH NOTE BY THE CITY FROM
FUNDS ON DEPOSIT IN THE FIRE PENSION FUND AND FIXING THE
INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 146
ASSESSMENT INSTALLMENTS
'V\7HEREAS, pursuant to RCW 35.45.150, the City Council of the City of Pasco,
Washington (the "City"), has determined to issue its Local Improvement District No. 146
Installment Note in the aggregate principal amount of$89,352 and finds it is in the best interest
of the City that such note be purchased by the City from funds on deposit in the Fire Pension
Fund of the City and available for investment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section i. ATHORIZATION AND DESCRIPTION OF NOTE. The total amount of
the assessment roll in Local Improvement District No. 146 in the City of Pasco, Washington (the
"City"), created under Ordinance No. 3991 which passed February 7, 2o11 was $124,673. The
3o-day period for making cash payments of assessments without interest in the District expired
on March 24, 2011 and the total amount of assessments paid in cash to date is $35,322 leaving a
balance of assessments unpaid on the assessment roll in the sum of $89351• The Local
Improvement District No. 146 Installment Note (the "Note") shall,therefore,be issued pursuant
to RCW 35.45.15o as a single installment note in the total principal sum of$89,351. The '.vote
shall be dated May 2, 2011 shall mature on May 2, 2021 shall be in fully registered form; and
shall be numbered R-1. The Note shall bear interest at the rate of 4.1%per annum(computed on
the basis of a 36o-day year of twelve 3o-day months), payable annually on each May 2,
beginning May 2, 2012.
Section 2. APPOINTMENT OF NOTE REGISTRAR; REGISTRATION AND
TRANSFER OF NOTE. The Financial Services Manager of the City is appointed Note
Registrar for the Note. The Note shall be issued to the City's Fire Pension Fund (the "Registered
Owner") only in the registered form as to both principal and interest and shall be recorded on
books or records maintained by the Note Registrar (the "Note Register"). The Note Register
shall contain the name and mailing address of the Registered Owner. The Note may not be
assigned or transferred by the Registered Owner. When the note has been paid in full, both
principal and interest, it shall be surrendered by the Registered Owner to the Note Registrar,
who shall cancel the Note.
The Note Registrar shall keep, or cause to be kept, at her office, sufficient books for the
registration of the Note. The Note Registrar is authorized, on behalf of the City, to authenticate
and deliver the note in accordance with the provisions of the Note and this ordinance, to serve
as the City's paying agent for the Note and to carry out all of the Note Registrar's powers and
duties under this ordinance. The Note Registrar shall be responsible for the representations
contained in the note registrar's Certificate of Authentication on the Note.
Section 3. PAYMENT OF NOTE. Both principal of and interest on the Note shall be
payable solely out of the Local Improvement Fund, District No. 146 (the "Note Fund"), and from
the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the
United States of America. Interest on the Note, and any prepaid principal thereof, shall be paid
by check, draft or interfund transfer on the interest payment date to the Registered Owner at the
address appearing on the Note Register. The final installment of principal of and interest on the
Note at maturity or prior repayment is payable at the office of the Note Registrar in Pasco,
Washington,upon presentation and surrender of the Note.
Section 4. PREPAYMENT PROVISIONS. The City reserves the right to prepay
principal of the Note prior to its stated maturity on any interest payment date, at par plus
accrued interest to the date fixed for prepayment, whenever there shall be sufficient money in
the Note Fund to prepay the principal of the Note over and above the amount required for the
payment of the interest then due on the Note. No notice of prepayment to the Registered owner
is required. Interest on the principal of the Note so prepaid shall cease to accrue on the date of
such prepayment.
Section g. PLEDGE OF ASSESSMENT PAYMENTS. Assessments collected in
Local Improvement District No. 146 together with interest and penalties, if any, are pledged to
the payment of the Note, and shall be deposited in the Note Fund, The Note is payable solely
out of the Note Fund and the Local Improvement Guaranty Fund of the City in the manner
provided by law and constitutes a lien and charge upon such Note Fund and Local Improvement
Guaranty Fund, The Note is not a general obligation of the City.
Section 6. FAILURE TO REDEEM NOTE. If the Note is not redeemed when
properly presented at its maturity or prepayment date, the City shall be obligated to pay interest
on the Note at the same rate provided therein from and after its maturity or prepayment date
until the Note, both principal and interest, is paid in full or until sufficient money for its
payment in full is on deposit in the Note Fund and the note has been called for payment by
giving notice of that call to the Registered Owner.
Section 7. FORM AND EXECUTION OF NOTE, The Note shall be printed,
lithographed or typed on good bond paper in a form consistent with the provisions of this
ordinance and state law, shall be signed by the Mayor and the City Clerk, either or both of whose
signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction
thereof shall be impressed or printed thereon.
Only the Note bearing a Certificate of Authentication in the following form, manually
signed by the Note Registrar, shall be valid or obligatory for any purpose or entitled to the
benefits of this ordinance.
CERTIFICATE OF AUTHENTICATION
This Note is the fully registered City of Pasco, Washington, Local Improvement District
No. 146 Installment Note described in the Note Ordinance.
Financial Services Manager
Note Registrar
The authorized signing of the Certificate of Authentication shall be conclusive evidence that the
Note has been duly executed, authenticated and delivered and is entitled to the benefits of this
ordinance.
Section 8. PURCHASE AND SALE OF NOTE. The City will purchase the Note:
from funds available for investment on deposit in the Fire Pension Fund of the City at a price of
par plus accrued interest from the date of the Note to the date of its transfer to the City. The
proper City officials are authorized and directed to do everything necessary for the prompt
delivery of the Note and for the proper application and use of the proceeds of the sale thereof.
Section 9. FIXING INTEREST RATE ON ASSESSMENTS. The interest rate on
the installments and delinquent payments of the special assessments in Local Improvement
District No. 146 are revised and fixed at the rates of 4.1% per annum and 8.00% per annum,
respectively.
Section io. EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect
and be in force five (5) days from and after its passage and five (5) days following its publication
as required by law.
No. R-1 $89,402
LNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF PASCO
LOCAL IMPROVEMENT DISTRICT NO. 146 INSTALLMENT NOTE
Interest Rate: 3.6% Maturity Date: 5/2/2021
Registered Owner: CITY OF PASCO FIRE PENSION FUND
Principal Amount: $89,351
N.B. The laws of the State of Washington under which this Note is issued contain the following section (RCW
35.45.070):
'Neither the holder nor owner of any bond, interest coupon, warrant, or other short-term obligation issued
against a local improvement fund shall have any claim therefore against the city or town by which it is issued, except
forpayment from the special assessments made for the improvement for which the bond or warrant was issued and
except also frepayment from the local improvement guaranty fiend of the city or town as to bonds issued after the
creation of a local improvement guaranty fund of that city or town. The city or town shall not be liable to the holder or
owner of any bond, interest coupon, warrant, or other short-term obligation for any loss to the local improvement
guaranty fund occurrrng in the lawful operation thereof. A copy of the foregoing part of this section shall be plainly
writterr,printed or en graved on each bond."
The CITY OF PASCO,WASHINGTON (the "City"),a municipal corporation of the State of Washington, promises to pay
to the Registered Owner identified above on the Maturity Date indentified above the Principal Amount identified above and to
pay interest(computed on the basis of a 360-day year of twelve 30-day months) thereon from the date of this Note or from the
most recent interest payment date to which interest has been paid at the Interest Rate per annum identified above,payable
annually beginning May 2, 2012 to the maturity or earlier prepayment of this Note. If this Note is not redeemed when property
presented at its maturity date, then interest shall continue to accrue at the Interest Rate identified above until this Note, both
principal and interest, is paid in full or until sufficient money for its payment in full has been deposited in Local Improvement.
Fund, Distract No. 146 (the "Note Fund"), and this Note has been called for payment.
This Note,designated the Local Improvement District No. 146 Installment Note,is issued by the City in fully
registered form pursuant to and in full compliance with the Constitution and laws of the State of Washington and ordinances
of the City,including Ordinance No. (the"Note Ordinance"). This Note is issued for the purpose of providing the funds
necessary to pay the costs of constructing the improvements within Local Improvement District No. 146 of the City as ordered
to be carried out by Ordinance No. 3932 of the City.
The City has reserved the right to prepay principal of this Note prior to its stated maturity date on any interest
payment date,at par plus accrued interest to the date fixed for prepayment,whenever there is sufficient money in the Note
Fund to prepay the principal of the Note over and above the amount required for the payment of the interest then due on the
unpaid Note. No notice of prepayment to the Registered Owner is required. Interest on the principal of this Note so prepaid
shall cease to accrue on the date of such prepayment.
Both principal of and interest on this Note are payable in lawful money of the United States of America Interest on
this Note,and any prepaid principal thereon, shall be paid by check,drag or Wterfund transfer on the interest payment date
to the Registered Owner at the address appearing on the registration books of the City (the'Note Register") maintained by the
Finance Services Manager of the City(the"Note Registrar'). The final installment of principal and interest on the Note at
maturity or prior repayment is payable at the office of the Note Registrar in Pasco,Washington,upon presentation and
surrender of this Note.
The funds deposited in the Note Fond and the Local Improvement Guaranty Fund of the City have been and are
pledged irrevocably to the payment of the principal of and interest on this Note. This note is not a general obligation of the
City.
This Note shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon has
been signed by the Note Registrar.
The principal of and interest on this note shall be paid only to the Registered Owner and to no other person or entity,
and this Note may not be assigned or transferred.
The City and the Note Registrar may deem and treat the Registered Owner of this Note as its absolute owner for the
purpose of receiving payment of principal and interest and for all other purposes, and neither the City nor the Note registrar
shall be affected by any notice to the contrary, As used herein, Registered Owner means the person or entity named as
Registered Owner of this Note on the first page hereof and on the Note Register.
It is certified, recited and declared that all acts,conditions and things required to be done precedent to and in the
levying of any assessments and the issuance of this Note have been done properly, have happened and have been performed in
regular and due form,as required by law, and that this Note has not been issued in an amount in excess of the cost of
improvements in Local Improvement District No. 146.
IN WITNESS WHEREOF, the City has caused this Note to be executed on behalf of the City by its Mayor and City
Clerk.,and the seal of the City to be impressed hereon, this 2 day of May,2011.
CITY OF PASCO,WASHINGTON
By
Mayor
(SEAL)
By.
City Clerk
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This Note is the fully registered City of Pasco,Washington,Local Improvement District No. 146 Installment Note described in
the Note Ordinance,
By
Financial Services Manager, Note Registrar
LID NO. 146 INSTALLMENT NOTE
PAYMENT RECORD
Interest Principal
Payment Date Payment Interest Principal Balance Note
Received Paid Prepaid Due Registrar
Beginning principal balance:
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
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