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HomeMy WebLinkAbout2011.08.08 Council Workshop Packet AGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 P.M. August S,2011 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Sewer Service to Burbank Area: 1. Agenda Report from Gary Crutchfield,City Manager dated August 4, 2011. 2. Vicinity Map. 3. June 9, 2011 Agenda Report (with attachments). 4. Concept Elements Comparison. 5. Proposed Resolution. (b) Refunding 2001 Limited Tax General Obligation Bonds: 1. Agenda Report from Stan Strebel, Deputy City Manager dated August 5,2011. 2. Savings Summary from Piper Jaffray dated July 27, 2011. (c) Municipal Code Amendments on Gross Misdemeanors: 1. Agenda Report from Stan Strebel,Deputy City Manager dated August 2,2011. 2. Draft Ordinance. (d) Capital Improvement Plan: 1. Agenda Report from Gary Crutchfield,City Manager dated August 4,2011. 2. Proposed Capital Improvement Plan 2012-2017 (Council packets only; copy available for public review in the City Manager's office, the Pasco Library or on the city's webpage at http://www,pisco-wa. ov/index.aspx?NID=255). 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c} 7. ADJOURNMENT REMINDERS: 1- 12-00 p-m., Monday, August 8, Pasco Red Lion — Pasco Chamber of Commerce Membership Luncheon. (Presenter: Jim Toomey, Director,Port of Pasco) 2. 10:00 a.m., Tuesday, August 9, Senior Center — Senior Citizens Advisory Committee Meeting. (COUNCILMEMBF.R TOM LARSEN, Rep.; BOB HOFFMANN, Alt.) 3. 7:00 a.m., Thursday, August 11, Sterling's, Walla Walla — BFCG Tri-Mats Policy Advisory Committee Meeting. (COUNCILMEMBER BOB HOFFMANN,Rep.; REBECCA FRANCIK,Alt.) 4. 7:00 p.m., Thursday, August 11, Transit Facility - Ben-Franklin Transit Board Meeting. (MAYOR MATT WATKINS, Rep.; COUNCILMEMBER MIKE GARRISON, Alt.) AGENDA REPORT TO: City Council ,� August 4, 2011 FROM: Gary Crutchfit- Manager Workshop Mtg., 8/8/11 Regular Mtg.: 8/15/11 SUBJECT: Sewer Service tO Burbank Area I. REFERENCE(S): 1. Vicinity Map 2. June 9, 2011 Agenda Report (with attachments) 3. Concept Elements Comparison 4. Proposed Resolution II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 818: Discussion 8/15: MOTION: I move to approve Resolution No. concurring in the core elements of a wastewater treatment services agreement with the Port of Walla Walla and, further, authorizing the City Manager to develop a final interlocal agreement. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) The Port of Walla Walla inquired about the potential for wastewater treatment services at the Pasco sewer plant in July 2010 and a City Council committee worked with the Port over the past year to explore the potential for a mutually beneficial agreement. The request and the committee's observations were reflected in the June 9, 2011 agenda report (attached as reference 2). Council discussion at its June 13 workshop concluded the suggested agreement concept did not provide sufficient benefit to the city to warrant approval. B) Further discussions with the Port have resulted in a substantial increase in the financial elements of the suggested agreement concept; a comparison of the "previous" and "new" concept elements is attached as reference 3. V. DISCUSSION: A) The improved financial elements reflect a 20% premium in the price of the capacity units and assures receipt by the city of at least $1.8 million within 17 years of signing an interlocal agreement (this represents approximately 20% of the expected cost of the city's new sewer treatment plant needed to accommodate growth in the northwestern part of the city). In addition, the PILT floor will adjust annually to avoid erosion by inflation. B) Previous concerns, other than financial, focused on the potential to create competition for industrial sites and the potential for more employment in the Burbank area contributing to school enrollment growth in Pasco. ■ Land competition: as noted previously, the Port has the legal ability to build/operate its own sewer treatment plant or to accommodate new development using septic systems. Though both options would be more costly (in one form or another), the fact remains that it can be done (witness the existence of Tyson Foods and Boise Cascade in that general vicinity). Thus, competition is likely to occur over time, regardless. 4(a) ■ School enrollment: this consideration hinges on actuality of development in Burbank. As has been the case, many employees of Burbank businesses reside in Pasco; this is not likely to change, as many people either prefer a more urban environment (city) or cannot obtain satisfactory housing in Burbank. Again, if development can occur in Burbank without Pasco sewer service (and thus create additional enrollment growth in Pasco), provision of wholesale sewer treatment service is unlikely to be a significant contributor to Pasco school enrollment growth beyond what would occur otherwise. C) The Port has indicated it desires formal action by the City Council, so it can proceed accordingly; if the city declines to go forward with an agreement, then the Port knows that option is not available to it and can proceed with its other option(s). PASCO WASTE WATER TREATMENT PLANT ROAD 40 EAST SEWER INTERCEPTOR � 'try +�• 'j'+�/,.'•���w,<? ^^ .S� ,�.. ��-fi,'-orc` �� -` ,� ` moo._ ..�•�� f ._, �ZQ�, _��•�T rl I . '`fie 1:'*.�. '`^ � "^ ''- •\. ��.� -- f � «"' ,K, PORT OF ti �J WALLA WALLA ~� •� - , liq 1"=Mo' AGENDA REPORT TO: City Counci s June 4, 201 1 FROM: Gary Crutchfi Manager Workshop Mtg.: 6/t 3/11 SUBJECT: Sewer Service to Burbank Area 1. REFERENCE(S): I. Vicinity Map 2. Letter from Port of Walla Walla to Paso City Manager dated 7/2110 3. Memorandum from CH2MHill to Ahmad Qayoumi dated I 1/14/10 4. Memorandum from City Manager to City Council dated 4/7/11 5. Memorandum from City Manager to City Council dated 5/5/11 6. Letter from Pasco Chamber of Commerce dated 6/7111 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 6/13: 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 Mo. 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 ,S'R12 1395 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 cast would be substantially higher, absent federal/state grant funds to reduce capital cost recovery). However, if Burbank's sewer service from Pasco was 4(a) limited to non-industrial uses (i.e., retail and housing), the competition risk would be greatly diminished (if not eliminated). • 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 mechanism is a Paymcnt 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. Tllat 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) In addition to the 515111 memorandum providing further explanation, the Pasco Chamber of Commerce was asked to advise the city of its perspective in this matter, recognizing that the provision of sewer service to the Burbank area could have adverse influences on Pasco businesses and/or investments. Given the relatively short timeline for a response, the Chamber addressed it at its recent board meeting; the Chamber's letter is attached as Reference 6. In essence, the Chamber's position is that the proposed concept agreement provides much more financial benefit to Burbank than to Pasco and the potential risks to Pasco are not sufficiently mitigated. The Chamber does note that receipt of sufficient water rights, however, may make the agreement more of a "win-win" arrangement (in recognition of Pasco's need for water rights). C) In view of the previous city council discussions, coupled with the observations Provided by the Chamber of Commerce, staff suggests council either: 1. Decline to further consider the proposed agreement; OR 2. Offer to develop an interlocal agreement with the Port of Walla Walla based on the proposed concept agreement, but to include the following changes: • Restriction of industrial uses to adequately minimize potential industrial Iand competition; • Higher compensation for Pasco and payment in form of acceptable water rights. H k'°w''� sSt.• �.�!' �v F Yi. ~- —v � •.�."'Xt� ` -----^^-T�= _— e' rf �r'..� PASCO WASTE WATER TREATMENT PLANT , ROAD 40 EAST SEWER INTERCEPTOR -S Via. F PORT OF 4 �, ��,,•. � WALLA WALLA � , r 1"=2000' 310 A Street Walla Walla Regional Airport WALLA WALLA Walla Walla,Washington 99362-2269 Phone: (509) 525-3100 FAX: (509) 525-3101 www.portwaUawalla.com • www.wallawallaairport.com PASCO CITY HALL July 2, 2010 PFCEIVED JUL 0 6 2010 Gary Crutchfield City Manager �I I Y OFFICER'S 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 Port 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 fbr your consideration. Sincerely, ?Executive s M. Kuntz 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-inchrinclined 85,000 H2S Control Tank and Feed 45,000 System Headworks Accessories 20.000 $230,000 Lift Station Wetwell 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 $198,0001 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 EID Street. 611 1 010 S.1D0CS1WW'PORnW385-221 BUR8ANK'WAS7EWA'EMTAElE 5-3ALT A REV.XIsx BURBANK BUSINESS PARK FLOWS AND LOADS Total Flow Total SOD Total SS (gpd) (lb/day) (Ib/day) PHASE 1 Average DaPy Flow d 30,200 82.3 .—.82.3 Maximum Monthly Flow d 45,366 Maximum Daily Flow (gpd) 51,000 Peak Hour Flow(gpm) 76 PHASE 2 Average Daily Flow(gpd) 78,400 83.2 83.2 Maximum Monthly Flow d 117,600 Maximum,.Qai1y Flow (q.pd). _ 132,300 Peak Hour Flow m 196 TOTAL PHASE 1 + 2 Average Daily Flow d 108,600 165 965 Maximum Monthly Flow d 162,900 Maximum Daily Flow d___ _ 183,300 Peak Hour Flow m 272 S:MOCS)W W PORT%W 0&-,221 BURBANK WASTE WAT ERTLOW S AND LOAOS,xW Y /• 1 4o1`y` f n/ �* � ff y • h ~ l ♦ 1 CONNECTm •y � FO,PASCO SEWER y J j}� SCREEN AND 1 UFT STATION ' PORT Of WALLA WALLA FIGURE Y pa f(qjp ndeCSOn BURBANK BUSINESS PARK &Qissoc7alos,inc. 5-3 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,RE. FROM: Thornas ). Helgeson, RE. DATE! November 14,2010 In August 2010,CH2M 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 coruTection of the fort of Walla Walla (POWW).That memorandum, entitled "Southeast Trunk Main Connection" described the following impacts: 0 Effect on treatment and conveyance capacity 0 Effect on treatment and conveyance capability Potential connection and usage charges In the interim, the POW"' 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 (AADF) and 162,900 gpd M!YIDF. The current POW W 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 connected. The purpose of this memo is to update the conclusions of our earlier memorandum to refloct 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 'rhe Pasco WWTP is designed to treat 8.0 million gallons per day (mgd) 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 4.3 ingd, 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 mgd,The SF 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 'IM'() of this capacity (based on a 2,4:1 ratio of peak flow to IVIIv1DF). Without knowing the proposed purnping Facility characteristics,however, actual flows will likely differ from this value, TC.Al2J101114-PWi1N-CONNECTION.UPDRTE.DOCX 1 PORT OF WALLA WALLA SEWER CONNECTION UPDATE Since the actual flows will be dependent on the actual pump station configuration and operation, the C=ity 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/I.BOD,250-300 mg/L TSS,3040 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 WWTP. 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 pH outside the range of 5.5 to 9.0 • BUD exceeding 300 mg/L • Temperature greater than 40° C • Other specific exclusions POWW's revised proposal states that"[w]aste 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 ROD concentrations that those allowed by City Code, but this appears to no longer be anticipated. 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 through a 6,500 foot 6-inch forcemain. As a result, two concerns arise relative to operations: At Iow 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 from 47 to 193 minutes PLUS the lag 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 0.55 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, so it is not possible to determine whether additional actions, charges, or pretreatment may be required. A disclosure of anticipated discharges TCA120101114„POWW CONNECTION_UPDATE.DOU 2 PORT OF WALLA VIALLA SEWER CONNF.GTION UPOAI E and connecting entities should be provided before a final determination is made on treatment impacts. Connection and Use Charges Exhibit 1 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 flan 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 plamiing level only). To determine the baseline value of this impairment, the capital costs of the WWTP expansion and the value of the SE Pasco Trunk are considered. These costs ($28,000,000 and $3,100,000 respectively) have been adjusted to reflect the increase in consh•uction costs since the projects were built. AS is typical for such price adjustments,the Engineering News Record Constniction 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 coru-iections 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). 1CA/201D'114_POV,�N CONNFC717,N-JPOATE0OCX PORT OF WALLA WALLA SEWER CONNECTION UPDATF EXHIBIT 2 Proposed Connection and Use Charges Pori of Walla Walla Connection Charge: Capital Cost,WWTP capacity 1113r $45,334,000 of capacity impaired by Pori 3.75% Treatment capacity cost share $1.700,000 Capital Cost, SE Trunk capacity (2'(31 $5.019,000 % tarrying capacity at peak flow 10.0% Conveyance capacity cost share $501,000 Total Connection Charge $2,201,000 Use Charge: Current O&M cost,treatment)41 $1,497,876 Cost factor for treatment, annual it) $56.170 Current O&M cost,conveyance '"' $573,457 Cost factor for conveyance, annual''51 $57,646 CUrrentO&M cost, ad ministrationlp' $1,511,350 Cost factor for administration,annual s5j $4,800 Total Use Cost Factors, annual $118,616 I'1 Treatment Capital cost based on most recent upgrade to facility, which enables this connection 12) Conveyance Capital Cost based on cost of construction at$10/inch diameter/foot 13) Capital cost adjusted for increase In construction costs (ENR Index 1995= 5471,August 2010= 8858) 'A1 O&M costs based on current year budget amounts 'b1 Use charge cost factors based on capacity percentages above for treatment and collection,administrative based on estimated 48 hours per year at a burdenee labor cost of$100,1hour 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. TCN70101114 PO'NWCONNECTION SJPDATE.DOCx 4 MEMORANDUM April 7, 2011 TO, City Council FROM: Gary Crutcht -1 ity Manager RE: Sewer Service to urbank 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 SR12 (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 commerciaPindustrial development with sewer service available. In effect, then, a sewer service agreement from Pasco would create more competition for industrial investment in the SRI 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, Possible 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 low'cr 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 [beused 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 Port could not convince the other taxing entities (Walla Walla County, school, fire 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 property 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. TENTATIVE AGREEMENT CONCEPT The committee recommends City Council consider the tentative agreement reached with Port of Walla Walla representatives (Exhibit I3) 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 server plant over that period of time. • Capacity: • Plant: reservation of 300,000gpd epresents 3.75% of existing total capacity of the sewer plant; it represents about /o 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 Paseo'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 passible to duplicate the southeast trunk line to add capacity (though costly). • 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 reserved 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 accorrunodate that, the committee recommends three blocks of 100,000gpd each, be offered at a lump sum of$750,0001'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 5% 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 time. • 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 Urea: 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 SRI interchange at Humorist Road as well as potential industrial users in the vicinity of SR12 and SR124. 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/tIz Attachments EXHIBIT A Possible Property Tax Effects (re: Burbank Sewer Service) Pasco Franklin PSD Port of Total County Pasco _ l;Q . Gas StationiMim-Mart $.5m) 985 820 1 3,320 170 5,295 Retail Strip Center I Ok sf($1.0m) 1,970 1,640 6,640 340 t 0,590 Warehouse 50k sf($3.5m) 6,895 5,740 23,240 1,190 37,065 100k sf($6.0m) 1 11,820 9,840 39,840 2,040 63,540 Processing Plant 100k sf($ O:m 15,760 13,120 53,120 2,720 84,720 Equipment ($10.0m) L 19,700 1 16,400 1 66,400 1 3,400 105,900 S29rn 1 57,130 1 47,560 1 192,560 1 9,860 307,110 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 [$750,000 x Seattle CPI (not to exceed 59ro annually) 1112 to date of block purchase]; payment may be made in equal annual payments over three years. • O&M: PWW install, operate and maintain all collection litres, pump stations, force main and other appurtenances necessary to collect and 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 5300/monthly for the first two years or until the first user is connected to the PWW system. + 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) W Operational Conditions. o City has unrestricted access to inspect the conveyance system owned and operated by the Port. C The City standards will govern conveyance system from the lift station to the gravity manhole, where ownership and maintenance changes. + PWW is responsible for maintenance of the conveyance system. + Water quality test at the City's discretion. O 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 the size of the gravity pipe. • PWW is responsible for purchasing the flow meter. o PWW to complete design of the system that will be reviewed and subject to approval by the City. o PV61W is responsible for obtaining any necessary right-of-way, easements and permits to complete construction. ■ Termination: (?) EXHIBIT C 34,tIirbanklEarbank Heights C&orlivkated Water System Plan -- —= 1 F� -° ,kE rya\� --- - - ,0-,A S SR 12� �_ I Ws 1-.�.-..1. (�,� l.a y eeucru kkrrd 13u t.- �1��� _ T',Ooluml+lu 13ar,ie 8 1 - .I tmfu ♦- r Cat en btoa I HUMOR -� - - R eatai ant ;yam Burbank " F' hunch Irrigation Dist. . 'C• r H n Ray vir v 'ding Club ter ter Sye LEGEND Class A (2 to 25 Connectiorias Critical Water Supply �`'/j Service Boundary 0�y�i Port of Walla Walla Proposed Retail Service Area Cp v�y - _, Public Water District G�j, port o�� lla Walla Servin g More Than 25 Connections Burbank Rural Activity Center P opqsed Who sale S r"cii A&ea &Port of Walla Walla Proposed ; I Wholesale Service Area Wildlife Refuge - !f Disclaimer The data contained in Walla Walla Countys Geographic Information System(GISJ 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 County's GIS is provided by the County AS IS without warranty of any kind,implied or expressed- By,proceeding to use the County's 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. MEMORANDUM May 5, 2011 TO: City Council FROM: Gary Crutehfie Ma ager RE: Burbank Sewe Service Concept Council discussion of this subject matter at its April 25 workshop meeting resulted in several questions being posed that required follow up by staff. This memorandum is intended to address those questions, to the extent possible at this point in time. LAND VALUE: Much of the land to be served by the Burbank sewer system is or will be owned by the Port of Walla Walla; whether those sites are sold or leased will be a decision of the Port. The commercial sites in the vicinity of the new interchange will likely draw the higher prices and adding sewer service will likely increase the value of those sites by at least $10,000/acre (according to local real estate advisors). Industrial sites, almost exclusively owned by the Port, would also realize an increase in value of sewer available (though one must consider the cost of providing the sewer service where determining the net value gain). The principal value associated with sewer service to Burbank is the substantial increase in land utilization opportunities because: 1) more potential users of land; 2) avoid dedication of land area for drain field use; and 3) avoid conflict of groundwater influences. Candidly, the Burbank/Port of Walla Walla industrial sites are quite limited in market potential due to groundwater influences which constrain the range and size of potential users; sewer service will reduce those influences. To a degree, sewer service to Burbank will make land values more comparable (that is, Burbank sites with sewer available will cost more than currently is the case for sites without sewer, thus reducing the current price differential between Burbank sites and Pasco sites with sewer service available). Pasco industrial sites (with sewer service) range in value (depending on location) from $30,000 to $60,000 per acre; Burbank industrial sites(without sewer) are currently estimated in the $20,000 range (according to real estate advisors). ANNEXATION POLICY: Pasco's policy on sewer service has been steadfastly limited to properties within the city, with rare exceptions (one is the service connection for Livingston Elementary School and McLoughlin Middle School, both situated outside the city but requiring sewer service to accommodate the enrollment growth at both schools within the past decade). The primary reason behind the policy is the lack of authority of the city to annex the service land after sewer service is provided, thus conflicting with the state's growth management objectives (urban services, like sewer, should be provided by cities) as well as the city's own growth management objectives (all properties within the Pasco urban area should eventually be within the city so that all public resources within the urban area are available for service delivery throughout the urban area). City Council May 5, 2011 RE: Burbank Sewer Service Concept Page 2 Provision of sewer service on a wholesale basis presents the opportunity to sell the unused capacity of the city's sewer system to another public agency (in this case, the Port of Walla Walla) for an area outside Pasco's Urban Growth Area(UGA). If the properties were within the Pasco UGA, city policy would and should require annexation, to fulfill the city's UGA objective. For a specific "wholesale" example, Pasco entered into an agreement with the state of Washington in the late 1980s or early 1990s under which the city agreed to provide (sell) city water to the residents of "Clark Addition" (an unincorporated neighborhood about one mile north of the Tri-Cities airport) on the condition that the residents there create a water district to install all the water lines necessary to transmit the water from the city system to their neighborhood and pay all associated costs with maintenance and operation of the lines outside the city. The agreement was never implemented by the Clark Addition residents. So, for the "wholesale" option to be available, the land area to be served shall be: l)outside the current and foreseeable UGA; and 2) be represented by a qualified public agency (state law precludes private ownership of a sewage system serving multiple properties), and 3) the public agency must pay for all collection lines, pump stations and force mains required within the unincorporated sewer service area. The Port of Walla 'Walla proposal fits the foregoing criteria for the possibility of wholesale service, as distinguished from "retail" sewer service available via annexation to Pasco (for private properties within Pasco's UGA), INDUSTRIAL COMPETITION: As noted during the April 25 workshop discussion, accommodating sewer service to the Burbank/Part of Walla Walla area may create competition with Pasco landowners for industrial development (with Pasco's increasing need for private industrial investment, competition would clearly represent a conflict with Pasco's overriding goals). The Port of Walla 'Walla, however, noted during the April 25 discussion that it has limited ability to serve industrial development, suggesting that most development in the Burbank area would be retail and business park activities (not food processing, for example). The Port, as staff requested, has provided written explanation of the limitations it sees regarding potential for industrial investments within its land area (see exhibit A). The Port's letter provides some degree of clarification, but does not entirely assure that competition for the same industrial investments would not occur in the future. One method of providing a greater degree of assurance to Pasco is to include a mutually-acceptable restriction in the sewer service agreement (language that would clearly avoid the undesirable conflict with Pasco's goals). Following the April 25 Council discussion of this matter, and the public awareness of a potential agreement, questions were raised in the business community as to potential effects. As the sewer agreement concept has not been vetted by the business community, it may be appropriate for a brief delay in the deliberation process (not more than one month) to provide an opportunity for the business community, acting through the Pasco Chamber of Commerce, to comment on the proposal. GC/tlz attachments 310 A Street Walla Walla Regional Airport IEZI Walla Walla, Washington 99362-2269 Phone: (509) 525.3100 FAX: (509) 525-3101 www.portwallawalia.com • www.wallawallaairport.com PASCO CITY HALL PECEIVED May 4, 2011 2517 Gary Crutchfield Cffy MANAGER'S City Manager City of Pasco P.O. Box 293 Pasco, WA 99301 Dear Gary: The purpose for this letter is to provide additional clarity regarding the Port of Walla Walla's development plans for the Burbank business park. Please find enclosed a chart highlighting the allowed uses per the Walla Walla County zoning code. You will note the permitted uses are more oriented towards commercial, retail and professional business park activities. The more traditional types of industrial uses are not allowed. Another important factor in developing the Burbank business park is the close proximity of Columbia School District's elementary, middle and high school, All three schools border the business park. This necessitates a more commercial business park development plan. The Port also has limited water resources at 800 gallons per minute and 463 acre feet per year for the entire business park. The Port would not be able to accommodate a large water user associated with an industrial type tenant. For the above referenced reasons, the Port does not believe the City of Pasco providing sewer treatment services to the Burbank business park would create industrial development competition between our jurisdictions. Please do not hesitate to contact me should you have any questions regarding this letter. *cerely, amen M. Kuntz Executive Director Ronald W. Dunning,Commissioner Michael Fredrickson, Commissioner fames M. Kuntz, Exccutive Director Paul H. Schncidmiller. Commissioner Uses Allowed in Burbank's Industrial Business Park Zone INDUSTRIAL/ BUSINESS P i e - 4 , Use PermittedtlPL Conditional Use lCl Hotels/Motels P Farmworker Dwellings AC, with conditions Automotive Dealers P. with conditions Automobile Leasing/Rental P, with conditions Building Material, Hardware, and Garden Supply P, with conditions Eating and Drinking Establishinents P, with conditions Food Stores P, with conditions General Merchandise Stores P, with conditions Heavy Equipment Sales and Rental P Honte Furniture, Furnishings, and Equipment Stores P Horticultural Nurseries, Retail P Irrigation Systems/Equipment, Sales Service & Storage P Produce Stand P, with conditions Produce Market P, with conditions Retail,Miscellaneous P, with conditions Durable Goods P Non Durable Goods P Commercial Greenhouses P Acc:eySory Use (RetaiUWholesaie Land Uscti) P, with conditions Firc Station P Animal Hospital P Automotive Repair and Services P Automotive Parking P Business Services P Catering EStablishrneuts P Clinic P Day Care Center P Finance, Insurance, Real Estate P Uses Allowed In Burbank's Industrial Business Park Zone Page I o]'2 Hospitals P Laboratories, Research and Testing P Offices P Orphanage/Charitable Institutions P Personal Services P Repair Shops find related services P Utility Facilities C Warehousing and Storage P Accessory Use (Govermnent/General Services Land Uses) P, with conditions Apparel and Other Textile Products P Computer and Office Equipment P Dairy Products Processing P Electronic and Other Electric Equipment P Food and Kindred Products P Leather and Leather Goods P Lumber and Wood Products, Except Fumiture P Printing and Publishing P Rubber and Miscellaneous Plastics P Storage/Packing Agricultural Produce P Textile Mill Products P Winery Type 1 P, with conditions Winery Type it P, with conditions Miscellaneous Light Manufacturing P Accessory Use (industrial/Manufacturing Land Uses) P, with conditions Park P Recreational Facility, public P Recreational Facility(Private when 50% or less is owned/ P partnered by a public agency) Theaters P Art Galleries P Assembly Halls P Libraries P Museums P Accessory Use (Recreational/Cultural Land) P, with conditions Growing of Crops P Accessory Use (Resource Lands Uses) P, with conditions Colleges, business colleges, trade schools P and similar organizations, all without students in residence offering training in specific fields Helistops AC Microwave Relay Stations P Radio and'Television Broadcasting Stations and Towers P, with conditions Railroad Freight Yards P Railroad Terminals P Wireless Communication Facility P, with conditions Wireless Communication Facility, Attached P, with conditions Accessory Use (Regional Land Uses) P, with conditions Uwq Allowed In Burbank's Industrial Busines.� Park Zone Page 2 nf'2 -PASCO �� s�q/ June 07,2011 Pasco City Council 525 N.Third Ave. Pasco, WA 99301 Dear Pasco City Council, Please accept The Pasco Chambers gratitude for allowing our members to weigh in on the Port of Walla Walla sewer proposal. The Pasco Chamber board discussed at length the pros and cons of the City's choice to accept the proposed engagement. We commend all of you for going through the process of ensuring a well informed decision. Your time and efforts are greatly appreciated. There was a great amount of discussion on the future effects this could hold on our City. The growth that may be stifled, due to the lack of planning in the surrounding areas, was a broiling topic. There was great concern on the impact this could have if Walla Walla County gained some momentum as an industrial business competitor. There was discussion on the positive aspects of promoting growth in our region, as well as how it could increase Pasco's tax base. Discussed at length were the following questions: What Impacts will this decision have on our Community 75 years from now? Will we need the extra sewage capacity in the future to accommodate our own community's growth? Would this relieve the impact of our schools and slow housing in our area? The dollar amount seemed minimal to most and the majority suggested leveraging the possibility to trade for water rights. It seemed that this would prove to be a win-win for both parties. Thank you again for considering our input and appreciate the opportunity. Sincerely, Nikki Gerds Executive Director Pasco Chamber of Commerce Port of Walla Walla Sewer New Previous Capacity Blocks/Price $900,000/ea; +CPI/5% $750,000/ea (100k gpd x 3) maxfyr Capacity Purchase/Timing I" Block within 1 year I" Block within 1 year 2nd Block within 15 years 3rd Block may be cancelled by city if not purchased within 50 years Payment Terms 3 years each block Same (one-third/year from I" year of purchase) Sewer Use Rate 100% applicable city rate Same PILT 100% of monthly sewer 100% of monthly sewer charge, not less than charge, not less than $2,000/month; + CPI after $2,000/month year 5; maximum annual adjustment 5% Land Use No restriction, provided Same wastewater limitations are met Term 75 years; Port may terminate 75 years with 5 years notice Service Area Coincide with Port's Port's "wholesale" service "wholesale" service area (see area, excluding that portion map) north of McNary Refuge (see map) 8/3/11 il:+��':Iyct tru / u�r�arii Heights �Mated Water System Plan y ¢tr0 E Jf ���•, `_�. °g�`7'w1 R'gutt Sup n• _ MCN .:Y 1 i.1 s Cal HUMORIST R m ,rrnt:it3co'e tZeenta t1t � 2 / 1 j H' n r+uay � LEGEND Class A (2 to 25 Connectio64) Critical Water Supply lkly" /✓rl 1; Service Boundary Port of Walla Walla - Proposed Retail wiz `-6 Service Area Public Water District 4��y Fort 41WOUa �7 alla Serving More Than ` 25 Connections Q Burbank Rural Activity Center t'sip"ed who ale Svr x1Eice, AwEa &Port of Walla Walla Proposed Wholesale Service Area • ci Wildlife Refuge Disclaimer The data contained in Walla Walla County's Geographic Information System(GIS)is subject to constant change.Wallas Walla County does not guarantee that the information presented is accurate,precise,current or complete.All data contained in the County's GIS is provided by the County AS IS without warranty of any kind,implied or expressed. By proceeding to use the County's GIS,each user agrees to waive, release and indemnity Walla Walla County,its agents,consultants,contractors or employees from any and all claims,liability,actions,or causes of action for damages or injury top;rrsons or property arising from the use or inability to use Walla Walla County's GIS data. RESOLUTION NO. A RESOLUTION authorizing development of an Interlocal Agreement with the Port of Walla Walla for Wastewater Treatment Services, WHEREAS, the Port of Walla Walla desires to establish wastewater services in the Burbank area; and, WHEREAS, Pasco owns and operates a wastewater treatment plant which has substantial unused capacity, a portion of which could be allocated to treat wastewater delivered by the Port of Walla Walla to the Pasco plant; and, WHEREAS, a committee of'City Councilmembers and appropriate staff worked with Port of Walla Walla representatives over the course of the past year to determine whether or not a mutually beneficial agreement could be developed; NOW, THEREFORE, BE IT RESOLVED BV THE CITY COUNCIL OF THE CITY OF PASCO: Section 1. That the Pasco City Council hereby concurs in the following core elements of an agreement for provision of wastewater services for the Port of Walla Walla: ELEMENT PROVISION Capacity Blocks/Price $900,000/ea; +CPI/5% max/yr (I 00k gpd x3 Capacity Purchase/Timing V Block within 1 year 2'd Block within 15 years 3rd Block may be cancelled by city if not purchased within 50 years Payment Terms 3 years each block (one-third/year from 1" year of purchase) Sewer Use Rate 100% applicable city rate Pl IA, 100% of monthly sewer charge, not less than $2,000/month; + CPI after year 5; maximum annual adjustment 5% Land Use No restriction, provided wastewater limitations are met Term _ 75 ears; Port may terminate with 5 years notice Service Area _ Y Coincide with Port's "wholesale" service area (see map attached Section 2. That the City Manager is hereby authorized and directed to develop a foimaI interlocal agreement with the Port of Walla Walla, consistent with the foregoing core elements, to include all appropriate provisions in such a Iong-term agreement for provision of wastewater treatment services for the Burbank area. Passed by the City Council of the City of Pasco this day of , 2011 Matt Watkins, Mayor ATTEST; APPROVED AS TO FORM: Debbie L. Clark, City Clerk Leland B. Kerr, City Attorney Suy°'aJiail klBuHrbarlk Heights Coo.r° ' ;raiated Water S-vsteml f'l'an x. SR 124' l _ _nom t rhOreln VMtpftl P.bvd t3U vlumbin Haain A 1 r7� r HUMORiST Rd Col a aneiaca'a Pleats ht `r1 Burbanis "�.r/41� , - 1^ .barch j Irrigation Dist r s t'R tertegr Bya LEGEND Class A (2 to 25 Connections) _ Critical Water Supply Service Boundary Gy Port of Walla Walla Proposed Retail ro,� C, - Service Area '0<1 Purling Water Distract �y Po" of\W Ua Waua 4 Servin More Than 25 Connections Burbank Rural Activity Center Proposed Who le s. iovice A!r a 8 Port of Walla Walla Proposed '!P ,. Wholesale Service Area •Q' j Wildlife Refuge Fire 3- 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 County's GIS is provided by the County AS IS without warranty of any kind,implied or expressed. By proceeding to use the County s 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 August 5, 2011 TO: Gary Crlltchtl 4*anager Workshop Mtg.: 8!8111 FROM: Stan Strebel, De auty City Man SUBJECT: Refunding 2001 Limited Tax Bonds 1. REFERENCE(S): I. Savings Summary from Piper Jaffray dated July 27, 2011 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 818: Discussion III. FISCAL INTPACT: Estimated net present value savings of$455,000; issue of$4,190,000 bonds. IV. HISTORY AND FACTS BRIEF: A) In 2001 the City issued $6.9 million of Limited Tax General Obligation (LTGO - non-voted) Bonds associated with refinancing and funding various construction projects including the Road 68 Softball Complex and refunding the 1994 LTGO bonds for City Hall, B) Due to favorable market conditions, Piper Jaffray, the City's bond underwriter, estimates that the City can save approximately $455,000 by refunding the 2001 bonds, while maintaining the current repayment schedule. The last bond payment is scheduled for December 1, 2020. Savings will depend on interest rates at the time of the sale, August 15. C) The City applied to Standard and Poor's for a rating on this issue, which was published on .August 4. The "AA-" rating, which is a two step improvement over the City's last general obligation issue rating (2002, Moody's "AT') will positively impact the City's savings on this issue through lower interest rates. V. DISCUSSION: A) Daren Bell, of Piper ,!affray, plans to attend the meeting of August 15 to present the results of the bond sale and the bond purchase agreement. Staff is awaiting a draft of the ordinance necessary to authorize the bond sale and refunding issue. B) Standard and Poor noted factors in the City's improved rating as follows: economic base - agriculture and Hanford; strong reserves, in accordance with policy; good financial policies and practices. 4(b) PiperjAray SAVINGS City of Pasco,WA Limited Tax General Obligation Bonds Refunding 2001 LTGO Bonds Present Value Prior Refunding to U9101/2011 Date Debt Service Debt Service Savings 2.4721098% 12/01/2011 104,337.50 89,125.00 15,212.50 15,119.35 12/111/2012 598,675.00 545,400.00 53,275.00 52,102.85 12/01/2013 600,930.00 547,200.00 53,730.00 51,213.02 12/01/2014 601,865.00 548,800.00 53,065.00 49,295.25 12101/2015 601,440.00 545,900.00 55,540.00 50,286.55 12101/2016 599,840,00 542,700.00 57,140.00 50,426.82 12/01/2017 601,810,00 544.200.00 57,610.00 49,555.53 12101/2018 602.307.50 545.600.00 56,707.50 47,567.04 12/01/2019 601,307 50 546,200.00 55,107.50 45,072.84 12/01/2020 598,785.00 546,000.00 52,785.00 42,092.50 5,511,297.50 5,001,125.00 510,172,50 452,731.76 Savings Summary PV of savings from cash flow 452,731.76 Plus:Refunding flmdg on hand 2,893.68 Net PV Savings 455.625.44 Jul 27,2011 10:13 am Prepared by Piper laffray&Co. (Finance 6.020 PascoAFFUNDTG) Page 8 AGENDA REPORT FOR: City Council q August 2, 2011 TO: Gary Crutch&_ "# Manager Workshop Mtg.: 8/8/11 Regular Mtg.: 8/15/11 FROM: Stan Strebel, Deputy City Manager SUBJECT: Municipal Code Amendments on Gross Misdemeanors 1. REFERENCE(S): 1. Draft Ordinance 1I. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 818: Discussion 8/15 MOTION: I move to adopt Ordinance No, , amending sections of the Pasco Municipal Code redefining the maximum incarceration for gross misdemeanors and redefining graffiti nuisances as misdemeanors and, ftmher, authorize publication by summary only. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: A) The 2011 State Legislature passed SSB 5168 which reduces the maximum period of incarceration, for a person convicted of a gross misdemeanor, from one year to 364 days. B) In order to be consistent with the new law, which is effective July 22, staff has identified all PMC references to gross misdemeanors where the penalty is inconsistent with the new law and which must be revised. The attached draft ordinance will amend the municipal code to limit any incarceration penalty for these offenses to a term not to exceed 364 days, as required by statute for most of the instances; will specify gross misdemeanor with no penalty range in two instances (thus reserving discretion to the court); and will clarify, in the case of graffiti nuisances, violations as a misdemeanor, thereby avoiding any conflict with the new law. V. DISCUSSION: A) In the following sections, the only change is substituting "364 days" for "1 year" regarding incarceration penalties. • Section 1 —PMC 1.01.130— General Provisions • Section 2—PMC 5.27.270--Adult Entertainment Business Licenses • Section 3 —PMC 5.45.200— For Hire Vehicles • Section 4 --PMC 5.46.060 — Private Detective and Security Business Licenses • Section 5 —PMC 5.70.050 — Massage Business Licenses • Section 6 —PMC 9.01.090— Peace, Safety Morals • Section 7 —PMC 9.02.020 -- Failure to Appear in Court B) In the following two sections, staff suggests that violations simply continue to be classified as gross misdemeanors, the penalty for conviction (which cannot exceed $5,000 fine or incarceration of 364 days, or both), being unspecified, thereby leaving discretion to the municipal court: 4W • Section 8 -- PMC 5.78.030— Rental Business License o Current — fine not more than $5,000 or incarceration not more than 6 months, or both o Proposed—not specified. • Section 9 —PMC 26,04,120 — Subdivision Regulations o Current — fine not less than $100 or more than $300 or incarceration not more than 90 days, or both. Proposed --not specified. C) The following section regarding graffiti nuisances currently defines violations as gross misdemeanors, yet the prescribed penalties (even for multiple offenses) each fall within the statutory definition of a misdemeanor. Staff therefore suggests that violations be defined as only misdemeanors with no changes to the CLLrrent fine schedule. Misdemeanors cannot carry fines exceeding $1,000 nor incarceration teems exceeding 90 days, or both. ■ Section 10 —FMC 9.85.040 —Graffiti Nuisance o Current-- I" offense not more than $250 2'0 offense not more than $500 Subsequent offenses, not more than $1,000 or incarceration not more than 60 days, or both c Proposed -- fines — same schedule, redefine as misdemeanor allowing incarceration of up to 90 days. ORDINANCE NO, AN ORDINANCE of the City of Pasco, Washington, amending Sections 1.01.130 "Violations - Penalty"; 1.08.040; 5.27.270 "Penalty"; 5.45.200 "Penalty"; 5.46.060 "Violations and Penalties; 5.70.050 "Violation and Penalty"; 5.78.030 "Violations"; 9.01.090 "Gross Misdemeanor - Penalty"; 9.02.020 "Penalty"; and 26.04.120 "Enforcement" Redefining the Maximum Incarceration for Gross Misdemeanors and amending Section 9.85.040 "Penalties" redefining Graffiti Nuisances as Misdemeanors. WHEREAS, the Washington legislature by Substitute Senate Bill 5168, recognized that a maximum sentence by a Court in the State of Washington for gross misdemeanors can, under Federal law, result in the automatic deportation of a person who has lawfully immigrated to the United States, is a victim of domestic violence, or a political refugee, even when all or a portion of the sentence or confinement is suspended; and WHEREAS, the legislature further has found that under the present definition of"gross misdemeanor", there is a disproportionate outcome, when compared to a person who has been convicted of certain felonies, which under the State's detenninate sentencing law, must be sentenced to less than one (1) year. As a result, an inequity exists which may be cured by reducing the maximum sentence for gross misdemeanors by one (1) day; and WHEREAS, such legislation has amended RCW 3.50.440 by which the Municipal Courts are empowered to provide punishment for gross misdemeanor violations including imprisonment for a maximum of 364 days, and requires amendment of the City's code to be consistent with this change in the law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That Section 1.01.130 entitled "Violations — Penalty" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 1.01.130 VIOLATIONS - - PENALTY, It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this code. Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this code, except for traffic infractions under the Washington Model Traffic Ordinance as adopted by the City of Pasco and for such violations specifically noted in this code as a "civil infraction", shall upon conviction of a gross misdemeanor, be punished by a fine of not more than Five Thousand Dollars ($5,000.00), or by imprisonment for a period of not more than three hundred and sixty-four (364) days, or by both such fine and imprisonment or upon conviction of a misdemeanor, be punished by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment for a period of not more than ninety (90) days, or by both such fine and imprisonment. Each such person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of this code is committed, continued, or permitted by such person and shall be punished accordingly. In addition to the penalties herein above provided, any condition caused or permitted to exist in violation of the provisions of this code shall be deemed a public nuisance and may be, by this City, summarily abated as such, and each day that such condition continues shall be regarded as a new and separate offense. (Ord. 3481 Sec. 1, 2001; Ord, 2743 Sec. 1, 1989; Ord. 2593 Sec. 1, 4-7-86; Ord, 2549 Sec. 6, 1985; Ord. 2391 Sec. 1, 1982; Ord. 1438 Sec, 13, 1970.) Section 2. That Section 5.27.270 entitled "Penalties" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 5.27.270 PENALTIES. A) Any violation of this chapter shall be a gross misdemeanor, and shall be subject to a fine not to exceed Five Thousand Dollars ($5,000), or to imprisonment for a term not to exceed one three hundred and sixty-four (364) days, or both such fine and imprisonment. Each day or portion thereof such violation continues or occurs shall be considered an additional and separate offense. B) Any person violating any of the provisions of this chapter shall also be subject to license suspension or revocation as set forth herein. (Ord. 3262 Sec. 3, 1997.) Section 3. That Section 5.45.200 entitled "Penalty" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 5.45.200 PENALTY. Any Operator, Driver, or passenger violating or failing to comply with any of the provisions of this chapter shall be guilty of a gross misdemeanor and shall be punishable by a fine not to exceed five thousand dollars ($5,000), or by imprisonment for-not more than one ( f three hundred and sixty-four (364) days, or by both such fine and imprisonment. (Ord. 3335 Sec. 2, 1998.) Section 4. That Section 5.46.060 entitled "Violations and Penalties" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 5.46.060 VIOLATIONS AND PENALTIES. Every person, whether acting as an individual owner, employee of the owner, operator or employee of the operator, or whether acting as a mere agent or independent contractor for the owner, employee or operator, or acting as a participant or worker in any way directly or indirectly, who acts in violation of any of the provisions of this chapter shall be guilty of a gross misdemeanor and upon conviction, such person shall be pimished by a fine not to exceed $5,000 or by imprisonment for a period not to exceed ene year three hundred and sixty-four 364) days, or by both such fine and imprisonment. (Ord. 2841 Sec. 1, 1991,) Ordinance Redefining the Maximum Incarceration for Gross Misdemeanors - 2 Section 5. That Section 5.70,050 entitled "Violation and Penalty" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 5,70.050 VIOLATION AND PENALTY. Every person, except those persons who are specifically exempted by this chapter, whether acting as in individual owner, employee of the owner, operator or employee of the operator, or whether acting as a mere agent or independent contractor for the owner, or acting as a participant or worker in any way directly or indirectly who gives massages or operates a massage business, or any of the services defined in this chapter, without first obtaining a license or permit and paying a fee to do so as required by this chapter, or violates any provisions of this chapter, shall be guilty of a gross misdemeanor and upon conviction, such person shall be punished by a fine not to exceed $5,000 or imprisonment for a period not to exceed one yeaf three hundred and sixty-four (364) days, or by both such fine and imprisonment. (Ord. 2840 Sec, 1, 1991) Section 6. That Section 9,01.090 entitled "Gross Misdemeanor - - Penalty" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 9.01.090 GROSS MISDEMEANOR - - PENAL'T'Y. Every person convicted of a gross misdemeanor defined in this code shall be punished by imprisonment in the county jail for a maximum term fixed by the court; of not more than one ye three hundred and sixty-four 364 days, or by a fine in an amount fixed by the court, of riot more than Five Thousand Dollars ($5,000,00), or by both such imprisonment and fine. (Ord. 3482 Sec. 1, 2001.) Section 7. That Section 9.02.020 entitled "Penalty" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 9.02,020 PENALTY. The penalty for willful failure to appear shall be a fine of not more than Five Thousand Dollars ($5,000.00) or imprisonment for not more than ate yea,, three hundred sixty-four (364) days, or both, The penalty imposed under this Section shall not exceed the maximum penalty for the original crime charged or, if there has been no charge, the offense for which the person was arrested. (Ord. 2592 Sec, 1, 3-7-86.) Section 8. That Section 5.78.030 entitled "Violations" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 5,78.030 VIOLATIONS. A) Any person violating any of the provisions or failing to comply with any of the requirements of this chapter, shall upon a finding that the act or omission had been committed, be punished by a fine of not more than $500 dollars and shall be guilty of a code infraction. Each such person is guilt), of separate code infraction for each and every day during any portion of which any violation of any provision of this chapter is committed, continued, or permitted by such person and shall be punished as aforestated. B) Any person who knowingly submits or assists in the submission of a falsified certificate of inspection., or knowingly submits falsified information upon which a certificate of Ordinance Redefining the Maximum Incarceration for Gross Misdemeanors-3 inspection is issued, shall, in addition to the penalties provided in subsection (A) above, be guilty of a gross misdemeanor and shall–be ^ 'one uF T.a eiy than $5,000 00 d..irn.... . +m risonm nt a i of� r3 MON thn- ROFR-h , Ol' beffig SUeh -i re °„k ��•���� 'fens for each and every day during any portion of which any violation of this subsection shall be committed. C) In addition to the penalties provided above, any violation of this chapter may result in the revocation of the business licenses provided in this title. Any violation of this chapter including the determination by the City after an inspection of the dwelling unit, that a condition exists which substantially endangers or impairs the health or safety of a tenant may, in addition to the penalties provided above, result in the issuance of a notice of civil violation by subject to the penalties as imposed under the provisions of this code. (Ord. 3231 Sec. 2, 1997.) Section 9. That Section 26,04.120 entitled "Enforcement” of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 26.04.120 ENFORCEMENT. Any person violating the provisions of this title is guilty of a gross misdemeanor and s k...., red dallaf�i $100 eF mey-e than ihr-ee heiidfed (300) dellaFs $300 ar to imp i - 3-1 The City Attorney shall commence an action to enjoin further violations or attempted violations and to compel compliance with this title. (Ord. 3398 Sec. 2, 1999,) Section 10. That Section 9.85.040 entitled "Penalties" of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: (1) Fines and Imprisonment. Any person violating this Ordinance shall be guilty of a g-r-as misdemeanor and punished by a fine of$250 44ar-s for the first offense; $500 des for the second offense; and $1,000 des for each subsequent offense, or by imprisonment in the city jail for a term not to exceed-i*t�-, ninety 90 days or by both fine and imprisonment at the discretion of the court. (2) Restitution. In addition to any punishment specified in this section; the court shall order any violator to make restitution to the victim for damages or loss caused directly or indirectly by the violator's offense in the amount or manner determined by the court. (3) Community Service, In lieu of, or as part of, the penalties specified in paragraph one of this section, a minor or adult may be required to perform community service as described by the court based on the following minimum requirements: (a) The offender shall perform at least 50 hours of community service. (b) The entire period of community service shall be performed under the supervision of a community service provider approved by the Courts. Ordinance Redefining the Maxiinuni Incarceration for Gross Misdemeanors-4 (c) Reasonable efforts shall be made to assign the offender to a type of community service that is reasonably expected to have the most rehabilitative effect on the offender, including community service that involves graffiti removal. (Ord. 33701 Sec. 2, 1999.) Section 11. This Ordinance shall take full force and effect five (5) days after its approval, passage, and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, and approved as provided by law this day of , 2011 . Matt Watkins, Mayor ATTEST: APPROVED AS TO FORM; Debra L. Clark, City Clerk Leland B. Kerr, City Attorney Qrdinance Redefining the Maximum Incarceration for Gross Misdemeanors- 5 AGENDA REPORT TO: City Council August 4, 2011 FROM: Gary Crutchfi anager Workshop Mtg,: 8/8111 SUBJECT: Capital Improvement flan 1. REFERENCE(S); I. Proposed Capital Improvement Plan 2012-2017 (Council packets only; copy available for review in the City Manager's office, Pasco Library or on the city's website at http://www,Vasco-wa. Jov/ px?NID",25.5). II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 818: Discussion 111, FISCAL IMPACT: IV, HISTOR17 AND FACTS: A) The city spends several million dollars annually on a wide variety of capital expenditures necessary to deliver or improve municipal services to its citizenry. Those capital expenditures range from parks, streets and utilities to buildings, fire engines and computers. B) Some of the capital improvement projects require debt financing. Given the constraints on operating revenues, it is important to properly plan for additional debt service obligations. Development of a six-year Capital Improvement Plan, which identifies the various capital projects expected to be undertaken each year and the method of financing for each, is essential to effective financial planning for the city. It is also beneficial to the general public, which can reasonably anticipate when certain improvements are expected to occur. C) Development of the annual Capital Improvement Plan occurs as a prelude to the annual budget; the first year of the approved Capital Improvement Plan is then incorporated into the subsequent annual budget document. Thus, review and discussion of the Capital Improvement Plan should be carried out with the notion that the conclusions reached represent guidance to staff in developing next year's budget. V. DISCUSSION: A) Staff will be prepared to answer questions about any of the projects included in the proposed Capital Improvement flan at the Workshop. It is recommended that Council gain a thorough understanding of the document through discussion at the Workshop. Staff expects Council to take formal action approving the Capital Improvement Plan in September so that it can be used to develop the 2012 fiscal year budget during September/October. 4(d)