HomeMy WebLinkAbout2011.08.15 Council Meeting Packet AGENDA
PASCO CITY COUNCIL
Regular Meeting 7:00 P.M. August 15,2011
1. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance
3. CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine by the
City Council and will be enacted by roll call vote as one motion(in the form listed below). There will be
no separate discussion of these items. If further discussion is desired by Councilmembers or the public,
the item may be removed from the Consent Agenda to the Regular Agenda and considered separately.
(a) Approval of Minutes:
1. Minutes of the Pasco City Council Meeting dated August 1,2011.
(b) Bills and Communications: (A detailed listing of claims is available for review in the Finance
Manager's office.)
1. To approve General Claims in the amount of $1,495.453.13 ($253,397.95 in the form of
Electronic Fund Transfer Nos. 6824, 6868, 6891, 6907 and 6930; and $1,242,055.18 in the
form of Wire Transfer Nos. 1111 through 1113; and Claim Warrants numbered 183560
through 183786).
2. To approve bad debt write-offs for utility billing, ambulance, cemetery, general accounts,
miscellaneous accounts, and Municipal Court (non-criminal, criminal, and parking) accounts
receivable in the total amount of$263,371.48 and, of that amount, authorize $181,521.71 be
turned over for collection.
*(c) Right-of-Way Dedication for a Portion of Sandifur Parkway(MF#DEED2011-004):
I. Agenda Report from David 1.McDonald, City Planner dated August 10,2011.
2. Overview Map.
3. Vicinity Map.
4. Right-of-Way Dedication Deed.
To accept the deed from William White for a portion of the Sandifur Parkway right-of-way.
(RC) MOTION: I move to approve the Consent Agenda as read.
4. PROCLAMATIONS AND ACKNOWLEDGMENTS:
(a) Presentation of Certificate of Appreciation to Christian Tenney,Memorial Pool Lifeguard.
(b)
(c)
5. VISITORS-OTHER THAN AGENDA ITEMS:
(a)
(b)
(c)
6. REPORTS FROM COMMITTEES AND/OR OFFICERS:
(a) Verbal Reports from Councilmembers
(b) Financial Services Manager:General Fund Operating Statement through July 2011.
(c)
7. PUBLIC HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO:
(a) Medical Marijuana(MF#CA2011-003).
1. Agenda Report. from Rick White, Community & Economic Development Director dated
August 10, 2011.
2. Resolution No. 3330.
3. City Attorney Memo dated June 23, 2011,
4. Preliminary Report on Pasco's Moratorium.
CONDUCT A PUBLIC BEARING
Regular lbleeting 2 August 15,2011
(b) Public Safety Sales Tax.
1. Agenda Report from Gary Crutchfield. City Manager dated August 12, 2011.
2. Franklin County Resolution No. 2011-281.
3. Proposed City Council Resolution.
CONDUCT A PUBLIC HEARING
Resolution No. , a .Resolution endorsing the Public Safety Sales Tax measure on the
November 2011 ballot and urging city voters to approve the same.
MUfION: I movie to approve Resolution No. , endorsing the Public Safety Sales Tax
measure on the November 2011 ballet and urgitfg city voters to approve the same,
8. ORDINANCES AND RESOLUTIONS NOT RELATING TO PUBLIC HEARINGS:
(a) Ordinance No, , an Ordinance of the City of Pasco, Washington, relating to contracting
indebtedness; providing for the issuance of par value of Limited Tax General
Obligation Refunding Bonds, 2011, of the City to provide:part of the funds with which to pay the
cost of refunding the City's outstanding Limited Tax General Obligation and Refunding Bonds,
2001 and paying the administrative costs of such refunding and the costs of issuance and sale of
such bonds; providing for and authorizing the purchase of certain obligations out of the proceeds
of the sale of the bonds herein authorized and for the use and application of the money derived
from those investments; authorizing the execution of an agreement with U.S. Bank National
Association of Seattle, Washington, as refunding trustee; providing for the call, payment and
redemption of the outstanding bonds to he refunded; fixing the terms and covenants of the bonds;
and providing for related matters.
1. Agenda Report from Stan Strebel, Deputy City Manager dated August 10, 2011.
2, Savings Summary from Piper Jaffray dated July 27,2011.
3. Proposed Ordinance.
MOTION: I move to adopt 0irdimoice No. ---., relating t() 4ontracting rndebtedrress;
providing for tbo issuance of pay value of 1_iraitcd Tax General Obligation Refunding
Bonds, 2011, of the City to provide part of the firnds with which to pay the cost of refunding tile;.
City's outstanding lJmited Tax Cieneral Obligation and Refunding Bonds, 2001 and paying the
adrni:7 strativc:e osts Of such rei'uttcl ng ar<d iltey cetsts of isst.Wne a �jjrcl "le of:auclt bolids, providing
for and authorizing the purcluasc Of e<e;rlain obligations out Of the IrrcJccerJs of the sale eof the bo.nds
herein authorized and for the use and application of the money derived from those investments;
authorizing; the execution of an agreement with U.S. Bank National Association of Seattle.
Washington. as refunding trrtstee; providing for the call. paymeN and redemption of the
outstanding bonds to be refunded: fixing the terms and covenants of the bands: and providing For
related matters and, further, authorize publication by summary only.
(b) Ordinance No. , an Ordinance of the City of Pasco, Washington, amending Sections
1.01.130 "Violations-Penalty"; 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.
1. Agenda Report from Sian Strebel, Deputy City Manager dated August 2, 2011.
2. Draft Ordinance.
MOTION: I move to.adopt Ordinance No, =ending sections of the Pasco Municipal
Code rc&frning the IMIXrr7LLln1 incarceration for gross misdemeanors a-ind redefioittg .graffiti
nuisanr_ as misd4; n€atyorq ajid. 1' Mber,atlthOrirc publicatita1r by surraartary only.
(c) Resolution No. , a Resolution authorizing development of an Interlocal Agreement with
the Port of Walla Walla for Wastewater Treatment Services.
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.
MOTION:I move to approve Resolutlon Pilo. . conceUruig in the core elements of a.
wastewa(cr tre�katment sr;rviccs agreement with the Port o;Walla Walla and, further, authorizing
the City fvlaifagcr to dcvelop a final interlocal agreecnem,
9, UNFINISHED BUSINESS:
(None)
Regular Meeting 3 August 15,2011
10. NEW BUSINESS:
(None)
11. MISCELLANEOUS DISCUSSION:
(a)
(b)
(c)
12. EXECUTIVE SESSION:
(a)
(b)
(c)
13. ADJOURNMENT.
(RC) Roll Call Vote Required
* Item not previously discussed
MF# "Master File 4...."
Q Quasi-Judicial Matter
REMINDERS:
1. 6:00 p.m., Monday. August 15, City Hall Conference Room #1 — LEOFF Disability Board Meeting.
(MAYOR MATT WATK.INS and COUNCILMEMBER REBECCA FRANCIK).
2. 5:30 p.m., Wednesday, August 17 — Benton, Franklin & Walla Walla Counties Good Roads &
Transportation Association Meeting. (COUNCILMEMBER BOB HOFFMANN, Rep.; REBECCA
FRANCIK, Alt.)
3. 11:30 a.m.,Friday, August 19, Sandberg Event Center—Benton-Franklin Council of Governments Board
Meeting. (COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK, Alt.)
4. 10:00 a.m., Saturday, August 20, Downtown Kennewick — Benton Franklin Fair and Rodeo Grand
Parade. (MAYOR MATT WATKINS)
MINUTES
REGULAR MEETING PASCO CITY COUNCIL AUGUST 1, 2011
CALL TO ORDER
The meeting was called to order at 7:00 p.m. by Matt Watkins, Mayor,
ROLL CALL:
Councilmembers present; Rebecca Francik, Mike Garrison, Robert Hoffmann, Tom
Larsen, Saul Martinez, Matt Watkins and Al Yenney.
Staff present; Gary Crutchfield, City Manager; Leland Kerr, City Attorney; Stan Strebel,
Deputy City Manager; Richard Terway, Administrative & Community Services Director;
Rick White, Community & Economic Development Director; Ahmad Qayoumi, Public
Works Director; Jim Raymond, Police Captain and Bob Gear, Fire Chief.
The meeting was opened with the Pledge of Allegiance.
CONSENT AGENDA:
(a) Approval of Minutest
Minutes of the Pasco City Council Meeting dated July 18, 2011.
Minutes of the Special Pasco City Council Meeting dated July 25, 2011,
(b) Bills and Communications
To approve General Claims in the amount of 51,252,083.79 (563,300.55 in the form of
Electronic Fund Transfer Nos. 6616, 6678 and 6750; and $1,188,783.24 in the form of
Wire Transfer Nos. 1097, 1098, 1102 through 1 106 and 1108; and Claim Warrants
numbered 183347 through 183559),
To approve Payroll Claims in the amount of$2,976,395.52, Voucher Nos. 42787 through
43101; and EFT Deposit Nos. 30045653 through 30046510.
(c) Community Survey:
To authorize the City Manager to contract for conduct of the 2011 National Citizen
Survey, not to exceed $11,000.
(d) Final Plat (MF# FP2011-003) Linda Loviisa Division 2, Phase 3 (Aho
Construction):
To approve the Final Plat for Linda Loviisa Division 2, Phase 3.
(e) Resolution No. 3331, a Resolution fixing the time and date for a public
hearing to consider the vacation of a portion of California Avenue.
To approve Resolution No. 3331, setting 7:00 p.m,, Tuesday; September 6, 2011 as the
time and date to conduct a public hearing to consider vacating a portion of California
Avenue.
MOTION: Ms. Francik moved to approve the Consent Agenda as read. Mr. Martinez
seconded. Motion carried by unanimous Roll Call vote.
PROCLAMATIONS AND ACKNOWLEDGMENTS:
Mayor Watkins presented Certificates of Appreciation for July 2011 "Yard of the
Month" to:
1
3(a).
MINUTES
REGULAR MEETING PASCO CITY COUNCIL AUGUST 1, 2011
Maria Rodriguez, 324 W. Sylvester
Brian and Sofia Roach, 4021 Riverhaven
John and Leah Clark, 3007 Road 70 Place
Randy and Jackie Zinnel, 6111 Chehalis Lane
Mayor Watkins presented a Certificate of Appreciation for July 2011 "Business of the
Month Appearance Award"to:
Western Dental, 3603 W. Court Street
VISITORS - OTHER THAN AGENDA ITEMS:
Mn Mac Miller, Boise Idaho. addressed Council regarding a rock in Volunteer Park.
REPORTS FROM COMMITTEES AND/OR OFFICERS:
Mr. Garrison reported on the Emergency Communications Study briefing, the TCVCB
Board meeting,the TRIDEC Board of Directors meeting and the Hanford Communities
Governing Board meeting.
Mr. Yenney attended the Benton-Franklin Community Action Committee meeting.
Ms. Francik attended the Energy Northwest tour.
Mr. Larsen attended the Energy Northwest tour and the Emergency Medical Services
Board meeting.
Mr. Martinez thanked all those involved with security services provided during the Water
Follies event.
Mayor Watkins reported on the Emergency Communications Study briefing.
Mr, Hoffmann attended the fort of Pasco's Annual Customer Appreciation Picnic,
PUBLIC HEARINGS AND COUNCIL ACTION ON ORDINANCES AND
RESOLUTIONS RELATING THERETO:
Street Vacation (MF# VAC2011-003) Saint Fran Court (Gary Earp).
MAYOR WATKINS CONTINUED THE PUBLIC HEARING TO CONSIDER THE PROPOSED
VACATION.
FOLLOWING THREE CALLS FOR COMMENTS,EITHER FOR OR AGAINST,AND THERE BEING
NONE, MAYOR WATKINS DECLARED THE PUBLIC HEARING CLOSED.
Ordinance No. 4015, an Ordinance vacating Saint Fran Court.
MOTION: Ms. Francik moved to adopt Ordinance No. 4015, vacating all of Saint Fran
Court and, further, authorize publication by summary only. Mr. Garrison seconded,
Motion carried unanimously.
ORDINANCES AND RESOLUTIONS NOT RELATING TO PUBLIC HEARINGS:
Ordinance No, , an Ordinance of the City of Pasco, Washington, amending
Sections 1.01,130 "Violations-Penalty"; 1.08.040 "Fraudulent Registration of
Unqualified Persons"; 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"; 9.85,040 "Penalties"; and 26.04.120
"'Enforcement" Redefining the Maximum Incarceration for Gross Misdemeanors.
Council concurred to remove this item from the agenda.
2
MINUTES
REGULAR MEETING PASCO CITY COUNCIL AUGUST 1, 2011
Ordinance No. 4016, an Ordinance of the City of Pasco, Washington, amending
Section 10.18.010 "Authority to Impound Vehicles"; and creating a new Section
10.18.015 "Mandatory Impound" providing for mandatory impound upon arrest
for driving while under the influence (RCW 46.61.502) and physical control of a
vehicle under the influence (RCW 46.61.504).
MOTION: Ms. Francik moved to adopt Ordinance No. 4016, amending Title 10 of the
Pasco Municipal Code regarding impoundment of vehicles and, further, authorize
publication by summary only. Mr. Martinez seconded. Motion carried unanimously.
Ordinance No. 4017, an Ordinance of the City of Pasco, Washington, amending
Pasco Municipal Code Section 11.02.010, regarding applicability of procedures for
"Civil Infractions" to include violations of Title 13, "Water and Sewers."
Council and staff discussed the details of this item.
MOTION: Ms. Francik moved to adopt Ordinance No. 4017, amending Pasco Municipal
Code Section 11 .02.010, regarding applicability of procedures for"Civil Infractions,"to
include violations of Title 13, "Water and Sewers" and, further, authorize publication by
summary only. Mr. Yenney seconded. Motion carried unanimously.
Resolution No. 3332, a Resolution accepting the Planning Commission's
recommendation and approving a special permit for a parking lot at 424 and 428
West Shoshone Street.
Council and staff discussed the details of this item.
MOTION: Ms. Francik moved to approve Resolution No. 3332, approving a Special
Permit for the location of a parking lot at 424 and 428 West Shoshone Street. Mr.
Garrison seconded. Motion carried unanimously.
NEW BUSINESS:
County-Wide Public Safety Sales Tax:
Council and staff discussed the details of this item.
NIOTION: Ms. Francik moved to affirm the city's intended use of the public safety sales
tax proceeds, if approved by voters, will be limited to a new police station and municipal
court as well as gang suppression and other public safety purposes. Mr. Garrison
seconded. Motion carried 6-1. No - Larsen.
MOTION: Ms. Francik moved to fix 7:00 p.m., Monday, August 15, 2011 as the time
and date to receive testimony from citizens in favor of or opposition to the public safety
sales tax ballot measure preceding Council consideration of a resolution expressing
support for or opposition to the ballot measure. Mr. Garrison seconded. Motion carried
unanimously,
MISCELLANEOUS DISCUSSION:
Mr. Yenney asked Mr. Kerr for clarification on vehicle impounds for vehicles without
insurance.
ADJOURNMENT:
There being no further business, the meeting was adjourned at 7:46 p.m.
APPROVED: ATTEST:
Matt Watkins, Mayor Debra L. Clark, City Clerk
PASSED and APPROVED this 22nd day of August; 2011.
Z
CITY OF PASCO
Council Meeting of: August 15,2011
Accounts Payable Approved
The City Council
City of Pasco, Franklin County,Washington
W me undersigne o her y certify under penalty of perjury that the materials have been furnished,the
ervlces render or the labo performed as described herein and that the claim is a just, due and unpaid
f obligati against the ch and that we are authorized to authenticate and certify to said claim.
Gary Crutchfield, City Ma Mriyele Mason, Finance Se n,460 Manager
1
We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County,Washington,do
hereby certify on this 15th day of August,2011 that the merchandise or services hereinafter specified have been received;
Check Numbers and 183560-183786 In The Amount Of: $1,242,055.18
Electronic Funds Transfers. 1111, 1112, 1113
In The Amount Of: $253,397.95
Electronic Funds Transfers: 6824.6868,6891
(Journal Entries) 6907'6930 Combined total of $1,495,453.13
Councilmemher Councilmember
SUMMARY OF CLAIMS BY FUND:
GENERAL FUND:
Legislative 454.90
Judicial 11,005.93
Executive 20,691.39
Police 20,895.71
Fire 9,214.22
Administration&Community Services 62,367.64
Community Development 1,603.30
Engineering 8813.56
Non-Departmental 22,833.74
Library 414.64
TOTAL GENERAL FUND: 150,370.03
STREET 3,004.66
ARTERIAL STREET 0.00
STREET OVERLAY 0.00
C. D. BLOCK GRANT 44,655.14
KING COMMUNITY CENTER 1,095.93
AMBULANCE SERVICE 6,569.56
CEMETERY 300.64
ATHLETIC PROGRAMS 1,300.64
GOLF COURSE 47,952.45
SENIOR CENTER OPERATING 2,123.13
MULTI MODAL FACILITY 772.64
RiVERSHORE TRAIL&MARINA MAIN 72.00
SPECIAL ASSESSMNT LODGING 18,142.23
LITTER CONTROL 0.00
REVOLVING ABATEMENT 597.00
TRAC DEVELOPMENT&OPERATING 0.00
PARKS 0.00
STADIUM/CONVENTION CENTER 0.00
GENERAL CAP PROD CONSTRUCTION 580,564.27
WATER/SEWER 249,131.38
EQUIPMENT RENTAL-OPERATING GOVERNMENTAL 38,846.62
EQUIPMENT RENTAL-OPERATING BUSINESS 4,564.78
EQUIPMENT RENTAL- REPLACEMENT GOVERNMENTAL 27,855.98
EQUIPMENT RENTAL- REFLACEMENT BUSINESS 0.00
MEDICAL/DENTAL INSURANCE 246,665.87
CENTRAL STORES 0.00
OLD FIRE PENSION 0.00
PAYROLL CLEARING 38,737.41
LID CONSTRUCTION 0.00
PUBLIC FACILITIES DIST: 31,998.66
TRI CITY ANIMAL CONTROL 30,71
SENIOR CENTER ASSOCIATION 100.80
GRAND TOTAL ALL FUNDS: $ 1,495,453.13
3(b).1
AGENDA REPORT
FOR: City Council DATE: August 10, 2011
TO: Gary Crutchfiel er REGULAR: August 15, 2011
Rick Terway, Administrative&Community Sc erector
i
FROM: Duayele Mason, Financial Services Manager
SUBJECT: BAD DEBT WRITE-OFF'S/COLLECTION.
I. REFERENCE(S):
Write-off and collection lists are on file in the Finance Department.
H. ACTION - 1,L T1 U OF CQU C[ STAFF RECOMMENDATIONS:
MOTION: I move to approve bad debt write-offs for utility billing, ambulance, cemetery, general
accounts, miscellaneous accounts, and Municipal Court (non-criminal, criminal, and
parkung) accounts receivable in the total amount of $263,371.48 and, of that amount,
authorize$181,521.71 be turned over for collection.
ILL JUSTORY AND FACTS BRIEF:
1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-offs are under
S10 with no current forwarding address,or are accounts in "occupant" status. Accounts submitted for
collection exceed$10.00.
2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed 510.00. Direct write offs
including DSIIS and Medicare customers; the law requires that the City accept assignment in these
cases.
3. COURT ACCOUNTS RECEIVABLE - These are all delinquent non-criminal and criminal fines, and
parking violations over 30 days past due.
4. CODE ENFORCEN.F NT — Li,LNS These are Code Enforcement violation penalties which are
either un-collectable or leave been assigned for collections because the property owner has not
complied or paid the fine. fhere are still liens in place on these amounts which will continue to be in
effect until the property is brought into compliance and the debt associated with these liens are paid.
5. CEMETERY—These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed$10.00.
6. GENERAL - These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
7. h ISCELLA_-IEOI_IS- These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
Amount
Direct Referred to Total
Write-offs Collection Write-offs
Utility Billing $ .00 642.12 642.12
Ambulance $ 58,996.98 22,477.98 81,474.96
Court A/R $ .00 155,527.00 155,527.00
Code Enforcement $ 200.00 1,860.00 2,060.00
Cemetery $ .00 .00 .00
General $ 3,706.79 694.61 4,401.40
Miscellaneous S 18,946.00 320.00 19,266.00
TOTAL: $ 81,849.77 181,521.71 263,371.48
IV, AQMINISTRA I'IVE R{ LITING.
cc: Dot French,Municipal Court Clerk
3(b)m2
AGENDA REPORT
FOR: City Council "I August 10, 2011
TO: Gary Crutchfi Manager Regular Mtg.: 8/15/11
Rick White, Dit o
Community 8c conoinic Development
FROM: David I. McDonald, City Planner
SUBJECT: Right-of-Way Dedication for a Portion of Sandifur Parkway (MF# DEED201 1-
004)
1. REFERENCE(S):
I. Overview Map
2. Vicinity Map
3. Right-of-Way Dedication Deed
11. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS:
8/I5: MOTION: I move to accept the deed from William White for a portion of
the Sandifur Parkway right-of-way.
III. FfSCAL IMPACT:
NONE
IV. HISTORY AND FACTS BRIEF:
A) The street right-of-way for the north side of Sandifur Parkway located between
Road 52 and Road 60 is incomplete. Not all of the properties on the north side of
Sandifur have provided their share of the necessary right-of-way. A full 80 feet of
right-of-way is need for Sandifiir Parkway. Currently in places there is only 40
feet of right-of-way.
B) The William White owner of one of the properties from which right-of-way is
needed, recently signed a dedication deed for a portion of the missing right-of
way.
3(c)
• •
Item: 40' Dedication , Sandifur •
Map File #: DEED Applicant: William White ►li
2011 -004
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Vicinity Item: 40' Dedication Deed - Sandifur Rd Map
Applicant: William `white File #♦ DEED 2011 -004
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After Recording,Return To:
City of Pasco, Washington
Attn:
525 '_North 3`d
Pasco; WA 99301
DEDICATION DEED (Individual Form)
Tax Parcel :No. 116-191-441
THE GRANTOR(S), William B White, for good and valuable
consideration, the receipt of which is hereby acknowledged, dedicates,conveys and
quit claims to the GRANTEE,THE CITY OF PASCO,a Municipal Corporation of
the State of Washington, for the public use, as a public right-of-way, all interest in
the land described in Exhibit 1, attached hereto and by this reference is made a part
thereof.
DATED this,,& day of J c ' 2001- _
-2` 7
By:
STATE OF WASHINGTON }
r : ss.
County of
On this Aeday of , 204, before me, the undersigned,duly
commissioned and sworn,personally peared 4 to me known to be
individual(s) described above and who executed the within and foregoing instrument as
owner(s) of record, and acknowledged to me that he/she/they signed the same and
his/her/their free and voluntary act and deed,for the uses and purposes therein mentioned,and
on oath stated that he/she/they is/are autho ' ed to execute the said instrument.
NOTARY PUBLIC i and f the S to of Washington
Residing at: �'�•I� 7� '
My Commission Expires: f,!s
BRENDA L.TlMPANY
NOTARY PUBLIC
Dedication Deed -Individual Form- 1 STATE OF WASHINGTON
COMMSION EXPIRES
MAY 9, 2015
Exhibit 1
A PARCEL OF LAND LYING IN A PORTION OF THE SOUTH HALF OF THE
SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 10, TOWNSHIP 9,
RANGE 29 EAST, WILLAMETTE MERIDIAN, FRANKLIN COUNTY, STA'L'E OF
WASHINGTON, MORE PARTICULARY DESCRIBED AS FOLLOWS:
THE SOUTH 40 FEET OF THE WEST 332.5 FEET OF THE EAST 665 FEET OF THE SOUTH HALF
OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 10,TOWNSHIP 9
NORTH, RANGE 29 EAST,WILLAMETTE MERIDIAN, RESERVING AN EASEMENT OVER THE
NORTH 30 FEET, RECORDS OF FRANKLIN COUNTY,STATE OF WASHINGTON
FITS
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5732 OVERTON ROAD
PARCEL # 118-191-041
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40 FOOT DEDICATION
SANDIFUR PARKWAY
1
GENERAL FUND OPERATING STATEMENT
THROUGH JULY 2011
YTD 2011 % OF YTD TOTAL % OF
2011 ORIGINAL ANNUAL 2010 2010 TOTAL
ACTUAL BUDGET BUDGET ACTUAL BUDGET ACTUAL
REVENUE SOURCES:
TAXES:
PROPERTY 3,372,895 6,000,000 56.2% 3,485,001 5,850,000 59.6%
SALES 5,091,107 8,225,000 61.9% 4,758,775 7,700,000 61.8%
UTILITY 4,616,475 7,560,000 61.1% 4,638,658 7,615,000 60.9%
OTHER 556,941 1,015,000 54.9% 705,553 1,015,000 69.5%
LICENSES & PERMITS 1,156,689 1,052,650 109.9% 1,242,123 1,020,200 121.8%
iNTERGOV'T REVENUE 1,284,441 1,632,200 78.7% 851,777 1,710,017 49.8%
CHARGES FOR SERVICES 1,750,527 3,007,750 58.2% 1,541,001 2,807,220 54.9%
FINES & FORFEITS 527,707 971,600 54.3% 436,075 927,700 47.0%
MISC. REVENUE 435,598 634,200 68.7% 406,420 734,700 55.3%
OTHER FINANCING SOURCES 61,672 100,000 61.7% 17,500 472,790 3.7%
TOTAL REVENUES 18,854,052 30,198,400 62.4% 18,082,883 29,852,627 60.6%
BEGINNING FUND BALANCE 9,414,299 6,000,118 9,860,107 6,000,000
TOTAL SOURCES 28,268,351 36,198,518 78.1% 27,942,990 35,852,627 77.9%
EXPENDITURES:
CITY COUNCIL 62,153 118,040 52.7% 72,382 116,525 62.1%
MUNICIPAL COURT 712,469 1,275,150 55.9% 723,075 1,267,353 57.1%
CITY MANAGER 509,194 915,410 55.6% 499,419 889,415 56.2%
POLICE 6,244,279 11,284,368 55.3% 5,975,434 10,827,443 55.2%
FIRE 2,413,026 4,193,418 57,5% 2,398,995 4,369,024 54.9%
ADMIN & COMMUNITY SVCS 3,393,264 5;595,700 60,6% 3,070,879 5,409,423 56.8%
COMMUNITY DEVELOPMENT 586,987 1,101,400 53,3% 610,272 1,035,931 58.9%
ENGINEERING 737,200 1;193,280 61,8% 617,991 1,136,332 54.4%
MISC. NON-DEPARTMENT 1,956,960 3,545,360 55,2% 2,205,682 4,330,406 50.9%
LIBRARY 805,319 1,148,880 70.1% 707,099 1,300,875 54.4%
TOTAL EXPENDITURES 17,420,851 30,371,006 57.4% 16,881,228 30,682,727 55,0%
ENDING FUND BALANCE 10,847,500 5,827,512 11,061,762 6,000,000
TOTAL EXPEND & END FUND BAL 28,268,351 36,198,518 27,942,990 36,682,727
AVAILABLE CASH BALANCE 9,535,350 8,601,209
PERCENTAGE OF BUDGET ALLOCATED FOR 7 MONTHS 58%
These statements are intended for Management use only.
6(b)
AGENDA REPORT
I-OR: City Council ` ,August 10, 2011
TO: Gary Crutchfict M�lanager
Regular Mtg.: 8/15/11
FROM: Rick White, ,
Community & Economic Development Directoi��
SUBJECT: Medical Marijuana(MF# CA2011-003)
1. REFERENCE(S):
1. Resolution 3330
2, City Attorney Memo dated June 23, 2011
3. Preliminary Report on Pasco's Moratorium
11. ACTION RE,QUESTED OF COUNCIL I STAFF RECOMMENDATIONS:
Conduct a public hearing
8115: NO MOTION IS NECESSARY
III. FISCAL IMPACT:
NONE
IV. HISTORY AND FACTS BRIEF:
A. In 1998 Initiative 692 was passed by Washington voters that permitted the use of
marijuana for medicinal purposes. The Initiative was codified as Chapter 69.51 A of the
Revised Code of Washington even though marijuana still remained illegal under the
Federal Control Substance Act.
B. In 2007, the State Legislature clarified RCW 69.51A by determining that a medically
authorized person could posses a 60-day supply of medicinal marijuana. Ilowever,
cultivating rnarguana still remained a felony under Federal law.
C. The 2011 the State Legislature attempted to address this through Engrossed Second
Substitute Senate Bill (E2SSB) 5073 which passed the Legislature in April of 2011. This
bill provided for collective gardening of medical marijuana and allowed local cities and
counties to adopt zoning and health regulations governing the production and distribution
of medical marijuana.
D. A majority of E2SSB 5073 was vetoed by Govemor Gregoire. Section 403 remains in
place which allows qualifying patients to jointly maintain collective gardens for
cultivating cannabis for medical use. The legislation also permits growing marijuana in
collective gardens with no more restrictions than it cannot be grown in public view and
contain no more than 15 plants per patient up to a total of 45 plants. E2SSB 5073 went
into effect on July 22, 2011.
E. City Council approved Resolution 3330 on July 18, 2011. The Resolution placed a 6
month moratorium on siting collective medical marijuana gardening in all zoning districts
within Pasco.
V. DISCUSSION:
A. Cities may impose reasonable restrictions through Zoning regulations on collective
medicinal marijuana gardens. The restrictions must serve a legitimate government
interest and be reasonably calculated to achieve that government interest. The
moratorium established through Resolution 3330 provides the City time to establish a
work plan for developing appropriate regulations for collective gardens.
B. Instituting a moratorium requires a public hearing within 60 days of its imposition. The
purpose of the public hearing is to address the propriety of the moratorium.
C. As noted in the City Attorney's memorandum, the City can adopt findings of fact based
on the evidence presented at the public hearing. After the public hearing, staff will
prepare draft findings of fact for Council consideration and adoption. Depending on the
adopted findings of fact, Council will have the ability to retain or repeal the moratorium.
7(a)
RESOLUTION NO. 3330
A RESOLUTION of the City of Pasco, Washington, declaring a
moratorium prohibiting medical cannabis collective gardens in all zoning
districts within the City and setting public hearing thereon.
WHEREAS, the Washington legislature by Engrossed Second Substitute Senate Bill
5.073 (the Medical Cannabis Bill) provided for the establishment of State regulated medical
cannabis dispensaries and collective cannabis gardens to provide a source of medical cannabis
for qualifying patients, however, Washington Governor Christine Gregoire vetoed significant
portions of the Bill including all State agency regulations of the production, processing and
distribution of medical cannabis; and
WHEREAS, as a response to the Governor's veto, the legislature attempted, in the last
hours of the 2011 legislative session to introduce Senate Bill 9555 addressing the concerns raised
by the Governor's veto, however, this Bill did not survive the closing of the legislative session
and, therefore, further legislative action is unlikely until the convening of the 2012 legislature;
and
WHEREAS, the portions of the Medical Cannabis Bill that survived the veto permits
collective cannabis gardens subject to the City's determination of appropriate zoning, business
license, health and safety requirements to serve the best interests of the City;and
WHEREAS, the veto of major sections of the Medical Cannabis Bill has resulted in
great confusion as to its application and future legislation including a recently filed Initiative
which raises further questions in regards to the future affect and application of this act;and
WHEREAS, the City of Pasco does not currently have a specific provision addressing
the conditions or locations of collective cannabis gardens within the City; and
WHEREAS, it is anticipated that collective cannabis gardens may require an increased
risk to health and safety, require increased police and code enforcement activities, and affect the
use and enjoyment of surrounding properties without appropriate regulations; and
WHEREAS, the City intends to develop appropriate zoning and land use regulations to
accommodate collective cannabis gardens; and
WHEREAS, Washington law authorizes the City to adopt a moratorium with a public
hearing which must be held within sixty (60) days of the date of the adoption of a moratorium;
and
WHEREAS,the City Council has determined that it is in the best interest of the City that
a moratorium be established to provide the City an opportunity to study appropriate regulations
for such collective gardens, and to develop a work plan for the implementation of such
regulations; NOW,THEREFORE,
Resolution - l
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO
RESOLVE AS FOLLOWS:
Section 1. o t Established. A moratorium is imposed prohibiting the
establishment, maintenance, cultivation, or operation of a collective garden for growing medical
cannabis as defined by Section 1, Subsection 2 of the Engrossed. Second Substitute Senate Bill
5073 and RCW 69.51A.010 as amended, within all zoning districts within the City of Pasco; and
a moratorium is imposed on the filing with the City, or the Courts of Competent Jurisdiction,any
applications for licenses, permits, or other approvals for the location of a collective garden as
defined above during the term of this moratorium.
Section 2. Tenn of Moratorium. The moratorium imposed by this Resolution shall
become effective on the date hereof, and shall continue in effect for an initial period of six (6)
months, unless repealed, extended, or modified by the City Council after a public hearing and the
entry of appropriate findings of fact as required by RCW 35A.63.220, provided, however, that
the moratorium shall automatically expire upon the effective date of zoning regulations adopted
by the City Council to address collective gardens for medical cannabis within the City of Pasco.
Section 3. -Public Hearin%. A public hearing shall be scheduled for 7:00 p.m., or as
soon thereafter as the matter may be heard, on the 15th day of August, 2011, at the City Council
Chambers of the Pasco City Hall, where it will hear evidence and consider the comments and
testimony of those wishing to speak at such public hearing regarding the moratorcum.
Section 4. PPrgliminary Finding. Following the public hearing, the City Council
shall adopt Findings of Fact justifying its actions before the public hearing, and determine
whether a work plan is necessary to address the issues involving the collective gardens for
medical cannabis within the City and extending the moratorium to complete a work plan and
implementation of appropriate regulations.
Section 5. Effective Date. This Resolution shall be in full force and effect upon its
passage and signature below.
PASlS�D by the Ci y ouncil of the City of Pasco, Washington, as its regular meeting
dated this_116 day of ,2011.
Matt Watkins, Mayor
A APPRO ED TO FORM:
Debra L. Clark, City LkFf Leland B. Ken, City Attorney
Resolution -2
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Gary Crutchfield
June 23,2011
Page 2
The 2411 , egisiature attemptezi°tp.`adi ss #his::wider; ; ':.1!vlw icsl',G abas.•Bii•1.�and..Engrossed
:.
second ubstitute'S.eiiat 'Bz 15} 3 Bch: as ed;tt l agia � t 10 i 2I �.Slfo€& O
patient prrtectioriYS,,authorized.rtilleo?ti� ,g2ii'dei , astd:allovued local cites.aziil:eiiiatzties to aclopf
zoii%ng..and health:i�gt 3a# ot�s'go a ui <:t w pion u tioii ::pxo:cess g::=d ti sii;tiiiGio :cif int&64 .
•• P ;:a te:.licei g prvc duce::foii. pr�iiuivers'.ari#;,..p a ss�ars of
marijuana.. The. A.ct rovided
n-arij uaiaa-f'or.:-6'edieal:purposes i�vers��ri l y: ..��p aitia�ezi#'.df�i �i aid :t3ie. _:epa ent.:of
Agriculture.
As f.to$ d � - Spotane:h pf � a ta b p &,Y,
just prier to tiie dine the°Bill`hit the ouetor's: :
Governor. Gregoire; as,..a result.:of ttii .',:iriteise,:lesiire ltarii:lt3a sides;;;signed;.,tie:Bill; . '
hvwevei, vo6e&: the. vast .rn;ijbiit .'of tie.;, if1.,, ih,*' ; all ::sectzorrs,;,&al �g;.:vd- .fate.
regulations.. In her vetoed..message, she deola�redo sate ernpioyee.should. oe rtured.to
violate the federal crimi l levy zn order;to:fi i'11'. uti s' u c er:6.we 1 ."
Rezrining:iri;plaice;.however,,is-Secticin'X03,=. rj►et:. utii�ies•.`..` i :mg patinas.may,create;
and:partic pa#e:iri ccilleptive.gWetzs.'fbf,.the.` u 6- up g:;processz a ;: ausptit g -and -
deliverizig cannabis,4or medical;"use ;;:: " . ph.pr i is h ;'m ice:; ha i teri q?a 1i�:pati6#s.to ..
. .
participate in single collective gar up to a
total of 5 plAnt s :and.containin reo .tliazi- 4 �ztices:af.0 l canriabis'petpatitArttfor.up:tc�a
total of 12 ounces ou$ahle.caimabis':
I additicin,:aeciian.50 i-makes i#3?1e al;:to di'spla fined cal'can�zia is `pia'a rni�t�ner+ r Olace-whioh
-is opeA tb-fhe.view iDf the.-g6heral-ptiblic
The:Governor, lil vOse,retained 5:eet on 1:1. 2 ich:p uitiesc .
"Cities aitd,tukvns may aclopt;:artc �srce,:ar�3�:,.cif t.t*following pplu- i g.tc the .
process-.g,': , hisP4p a"is.• �3ugis:•whn pioductiori; i
theirr jiirisdictibri; 2ianMg.:regtiires xe its=:busiai ss.ii;.ceri iag:regturemOrits;:'haaltl�
and.saf r;.r quir ztie its Q#hirig,in this•act is:.MiOnde i to-
limit.tlZe;-authority of:cities:ai tk;?tti viis:to. is lros .;; an g;r u remerits yr ether
canditi6ns:'#94 licensed"dis ensers;.;scR 1Qng.as:such;retl it riieiits:tic�riot prelude
the possibility f siting l'cart ed.:dispensers tldhI hO.;jcirisdictioh"
The-:legislature itz a last-minute.effort..to, cure:this prof lip introduced S$ 5955.in•the..wa*g
fftomentt of t6 legislative,sessibn. '-his B i i,nc� e er;' i ;:ri'at make it eitt.of efl ittee Before
the close-ofthe session,•arid'tlieref6m", tfi_f be Rio Antlier leg sfatve direction ittil ilia next
legislative session
This leaves the-c t r:in a yery.avulcward ppsi#i4ti. 3e the.-vetoes:el irtated' t #e'regulAted
dispensaries, inc#'ti i ig evveii-the auth'or pre viapsly
the.chies cannot``preclude the possibint�' ' it14]1.Gerised dispensdrie�s Within:the jurise#ictioi�.''
Gary..Crutc hfield
June
Page 3
Secondly,. the:10,.�3siatiort:p r�riaits': WW ai:.Z.93r�jtt�ia.sri'�vlle�tiv� g4r4ens.;•wit4 no more
restrictions that rt:cairtot:ti: gFiin;glic;v'ietiv
.tt fel .of t pe Under kCW 6945d.6'068,:the
settg:peralties";£ci vialat� : f the". ozi 'subta :sc�t;, 'i"#e<ste: akes:;ite --that'..-
local laws and ordsiics-:fiat: e`3rieiisXStett: kt; ie}iurezen :::v£State'1 ?v `;sitli:tvt•be
enacted and'.(are) urtet*forceafile.: . �is.8.xesa t,.# ► .°C�ty c <rt:.' c#1 iit.or exclude �eo1leC ve
gardens-entirely.
The efore; .ori July 22, 201:1,;t e e r"> .at::least: 11v :pr3rEitr is':that"rem, ri - shall`So-into: .
effec#. A tl "punt; rt wifI bear -vtlun te'Saaiug�vn,for.giiaxig penis #�
"create., 'a ad, partzciP,ate. iz�.;'. ci�kli�t °:gaffe 5' ;,�� :;#fie: Pu�ose o�,.�iri deieiirg prgcessing;.
transporting- aid de 1, ef -gaziria3 is,"Sciri
While.the.oities'cazttiot` alfie:,:icolle dive gafide :.ilg ,.;?kteyxn ::xpa ?Fesonat�le"�st�cLz9�s'
thxougli.zQtai g:-reg 3 t ti'ds: Like.ail::: t er: gcdat , tt 3u t3 - ti3,~atld tiaaCetially...'serve.a .
legitimate goyerri lent ititetest ;:trl ::and=: ti rtE iguo s;: t1id' be -reascihq,,y,: ealctilated to
achieve:that govert=entaf-iiterest:.,
Once.-it has--been>.deter itied".t at`such.xe tTat ons.;ar ..nepessaxy .tl e':Citp:;will:rieed''tirrie to „ . . .
re.are, enir ` . .l` aiitl- eii6rceabe: r; :atrts..,.. Iit>:li` -t„off. ti .':suiti #a1:coifiison.'
Burro i 4:a this'. attti tl e:l igh.”prc�bsl "u : t e,.G ah es, flee City ariay,v i l�:.to:.impase':a . .
orate nutri"to i e. t .dTil i'etit i�me tea:-a c irripl l�.t is
RCW 35-:.6 . 24.ailo?ws ;tie pity o inc J°td>sci4pt iuci tciiiu i'Qr croate:,ari i terin: ni�r g
ordaftatice..w4jt'b ib�g-the:aet vi#.y.'-whili:t ::.City; 'air'a puY l'c:"lxeari g;' 'esta 'il ii .a.work.
plan;:cletartninas:a i?tal; fP:re.g a."Ons:,,
A.moratorium" iiay:';be declaxei%:.irr i ii f y:by.; eso Au 'on: h e •.zoi wg or 3 is . ori:.the
condit;oti tha'4: id lac:hea in' :is li Is v fJai ,6t1'tla 'it :a q':.Lion: T}Se y Coeiri it;oaii act'
l� .
Qzt the inorat�riuri;'vfetYrr:iat:it' ceives a reiizztati`rnorn:th `Flioiritziiss� :
die pity. Council must adapt fiiidg ::of.; 'act::jus; £3ug:tte,. otatai�:um: iatoriu can "
,Wnilr ue in effect'for,:s'ix�riiontlis:a , tzpt rI fife:a 3'o i#iori. a;sii #'ic''rNVik;:pl tit st'up:to one-
off
A moratorium ;may. then Ipe roz? Lveci:£c►r one tai Cora` t#dititnaT, six-trifltitl�,terms if
proceeded.by publio hearing:add:find ings.Offacti;ire made with each,renew al:
There.are two potential:.pr'oced ires:to"follOW. :
•The.•first.is�to fiiec�re.an:immediate,.._mQr�tcirft "pri���i�i�g:met .jai;rnr�ri� a�"atici;_�all�cti�e. '. • . ,
gard :.iii anyone.'wit}iiri:tfie City,ai�rrg;a:pkijc. e : : .wtiu : fl..cys: ' t?liowiaig:#lie .: "
public Ilea ing,"the-City COuneli cats a pt;;fut Ji gs_<af:fact'.iadseci an".evi fence:,iec:h't4.a'ft&
extend;the-motMOrium for.up,.t¢ si�c�..mcinths;::"Ax;..:es blisli.:a:' voriC:,plan:prgei<dur tert ng-tie....,
tnor06rh in for up.tii one year. ;
Gary Crutchfield
June 23-,201.1
Page 4
The-second procedure:is:.the City, irniinediate :adapts:the firit izigs d fact,andcp"s,a.:moratoriwn
ordinance or.resolution, zkew se,;pr�ivicing:for a p ibkc Ixearizig after:Whir the Council:may .
either.continue;or:ropeaf.tlie rmoratonwn'.:
.Several other juri diction's fro.M the '14te`:ha re., already.:enai ed rr�araf�ir�ums. `regarding
dispensaries; arid' Many mate ire exliecte€i:t0 enact mom Onuins regariiing collective gardens
before.:ttie.effectisre date of the statute.
Attached is.a.draft Resolution.€ollc Wih g:the ItA:Pr c.e a fa><your.:consideration:
If you haae any, questions,or concertts;.l lea .e.:do rit7t.hesitate#o:give-nie-a call::
LBKfsla
Attachment
cc.: Lisa:Beaton
Toni Lainpson
Stan Strebel
Rick White
MEMORANDUM
DATE: August 11, 2011
TO: Gary Crutchfield, City Manager
FROM: Rick White, Cominunity and Economic Development Director
SL RTECT: Preliminary Repoit on Pasco's Medical Marijuana Moratorium
Through Resolution 3330, the City adopted a moratorium on the siting of collective medical marijuana
gardens in all zoning districts on July 18, 2011. State law requires that a public hearing be field within 60
days of instituting a moratorium. This preliminary report is intended to assist City Council in the public
hearing process by placing on the record the City's concerns that are inherent with the siting of collective
medical marijuana gardens.
Legislative
A. The possession or distribution of marijuana has been and continues to be a violation of state law
pursuant to Chapter 69.50 Revised Code of Washington (Washington's Uniform Controlled
Substances Act), and federal law,through the Controlled Substances Act("CSA").
B. Initiative Measure No. 692, approved by the voters of Washington State on November 30, 1998,
and now codified as Chapter 69.5 IA RCW, created a limited defense to marijuana charges under
state, not federal, law if the person charged could demonstrate that he or she was a qualifying
patient or designated provider as those terms are defined in Ch. 69.51A RCW. In 2007, the state
legislature amended the law, and again in 2011, the state legislature passed a third amendment to
the lard, F.2SSB 5073, Chapter 181, Laws of 2011, portions of which the Govenior vetoed. The
newly amended law took effect on July 22, 2011.
C. Because the Governor vetoed 36 of the 58 sections of the legislature's bill amending Chapter
69.51A RCW, the law, in its final form, understandably has inconsistencies and ambiguities. For
example,certain sections that were not vetoed make reference to other sections that were vetoed.
D. The recent amendments to Chapter 69.51A RCW change the scope and effect of the law. New
sections affect the rights of qualifying patients and their designated providers. The law now
allows "collective gardens" that provide for growing and cultivating up to 45 plants to serve no
more than 10 qualifying patients. The law also provides other changes to the rights and
responsibilities of medical marijuana patients and their designated providers.
E. The new law clearly delegates to cities the authority to implement zoning requirements, business
licensing requirements, health and safety requirements, and business taxes as those requirements
and taxes relate to the production, processing, or dispensing of medical marijuana. In particular,
local regulations could address ambiguities concerning the location and operation of collective
gardens.
Public Health and Safety Issues
A. Collective garden can serve up to 10 qualified patients and can have up to 15 plants per patient,
but no more than 45 plants and no more than 24 ounces of useable cannabis per patient up to a
total of 72 ounces. Only qualified patients may participate in or receive cannabis from a
collective garden. However, there is no limit on the number of collective gardens a patient may
be a member of and no limit on the amount of time that they must maintain their membership.
The lack of regulations is cause for concern that a system of interconnected collective gardens
could effectively operate as commercial dispensaries.
B. Cities in Washington State have experienced the establishment of medical marijuana
"dispensaries." These dispensaries offer marijuana and marijuana products to numerous persons,
asserting that they are operating as designated providers within the meaning of Chapter 69.51A
RCW as it currently exists. These businesses are variously referred to as dispensaries,
cooperatives, patient cooperatives, or patient networks, both for profit and not for profit. These
businesses are illegal under both state and federal law.
C. The Pasco Police Department (PPD) has expressed concerns that collective medical marijuana
gardens will invite vandalism,theft and trespass and will compromise neighbo►fhood safety. The
PPD has also expressed the need for development of regulations that will minimize these
expected impacts
Land Use Issues
A. City staff should analyze the impacts of allowing collective medical marijuana gardens in
residential and commercial zones as well as impacts arising from the proximity of such collective
gardens to schools, daycares, parks, religious facilities,jails and courthouses. The City does not
have provisions in its zoning ordinances that address or mitigate these impacts. Without
provisions addressing collective medical marijuana, gardens, the public is likely to experience
improperly regulated collective gardens that constitute a threat to public safety and enjoyment of
property.
B. The City must ensure that proposed locations for these collective gardens are appropriate and that
any potential secondary impacts arising from the operation of collective gardens are minimized
and mitigated. These secondary impacts may include, but are not limited to burglaries associated
with the marijuana maintained on the site, or an increase of other illegal activities, such as drug
use, within the vicinity of collective medical marijuana gardens
AGENDA REPORT
TO: City Council August 12, 2011
FROM: Clary Crutchti 6Manager Rcgular Mtg.: 8/15/11
t
SUBJECT: Public Safety dales Tax
I. REFERENCE(S);
1. Franklin County Resolution No. 2011-281
2. Proposed City Council Resolution
II. ACTION REQUESTED OF COUNCIL / STAFF RECONINIENDATIONS:
CONDUCT A PUBLIC HEARING
8115: MOTION: I move to approve Resolution No. , endorsing the Public
Safety Sales Tax measure on the November 2011 ballot and urging
city voters to approve the same.
M. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A) Franklin County has noted the overcrowding and poor condition of its jail for
several years and has developed a plan whereby renovation of the existing jail and
construction of a new jail could occur, with approval of a three-tenths sales tax by
voters of the County. Franklin County Resolution No. 2011-281 (attached),
approved by the Franklin County Board of Commissioners last week, reflects the
essential background information and the proposed sales tax measure to appear on
the November ballot.
B) If approved by voters, 40% of the sales tax proceeds are distributed (by law) to
the cities, based on population. Pasco would receive approximately $1.1 million
annually. Previous discussion by City Council indicated its intent to use the
proceeds to pay for construction of a new municipal court space (at the County
Courthouse) and a new police station. The remaining proceeds would be used to
fund increased gang suppression activities and other public safety services.
C) A public hearing; was scheduled by City Council for August 15 to receive
testimony as to whether or not the City Council should formally endorse the sales
tax measure and urge voters to approve it in November. Though individual
Counciimembers can state their personal view/endorsement of the measure, any
position (for or against the measure) by the City Council (as a body) must be
preceded by a public hearing (so constituents may advise the City Council prior to
its action).
V. DISCUSSION:
A) A proposed City Council resolution endorsing the measure and urging its
approval by voters is offered for potential consideration by the City Council.
Following a public hearing, City Council should deliberate the matter and
determine whether or not the Council, as a body, wishes to approve the resolution.
If so, a motion is offered above.
7(b)
FRANKLIN COUNTY
RESOLUTION NUMBER 2011-281
BEFORE THE BOARD OF COUNTY COMMISSIONERS, FRANKLIN COUNTY, WASHINGTON
RE. IN THE SUBJECT MATTER OF CALLING FOR AN ELECTION ON THE LEVY
OF A SALES AND USE TAX FOR COUNTY AND CITIES' CRIMINAL JUSTICE
AND PUBLIC SAFETY PURPOSES INCLUDING FOR THE IMPROVEMENT,
EXPANSION, OPERATION, AND MAINTENANCE OF A COUNTY JAIL AND
OTHER FACILITIES
WHEREAS, in Franklin County and the Cities therein there continues to be an increasing demand
placed on local public safety services,facilities and the criminal justice system; and
WHEREAS, in 1980 Franklin County had a population of 35,025 and In 1990 a population of
37,473; and
WHEREAS, the Franklin County Corrections Center (County Jail) was constructed in 1984 to
confine a maximum of 102 inmates (102 inmate beds); and
WHEREAS, in recent years due to increases in the County Jail inmate population averaging 190
inmates per day the County Jail has double bunked inmates increasing the jail capacity to 147 beds;and
WHEREAS, Franklin County has a current estimated population of 82,500, amounting to a 100+%
increase in population since the County Jail was constructed over 25 years ago, and
WHEREAS, the County Jail has a current average inmate population of 190, amounting to a per
day average of 85+ inmates beyond the facility's 1984 capacity and routinely an inmate population above
the facility's current capacity; and
WHEREAS, a significant portion of the population increase has occurred in the City of Pasco and
continues to do so;and
WHEREAS, the County Jail provides for the incarceration of persons arrested within both the
incorporated cities' and unincorporated county areas, and thereafter sentenced to jail by all the courts in
Franklin County; and
WHEREAS, the increase in local population has increased criminal caseloads for the entire local
criminal justice system including the Franklin County Sheriffs Office, Prosecuting Attorney, local courts,
the County Clerk's Office, and Cities' police departments all of which utilize the County Jail and serve
"criminal justice purposes" per RCW 82.14.450(5); and
WHEREAS, demand for criminal justice and public safety services continues to increase due to
increased traffic, growth, and development pressures that have overburdened the County Jail, as well as
other Franklin County facilities and services, hereby necessitating services expansion, facilities
improvement and addition; and
WHEREAS, County property taxes are limited to a maximum annual growth rate of one (1)
percent or the Implicit Price Deflator(IPD), whichever is lower. In conjunction, the County's costs for staff,
personnel benefits, and operations have increased at a rate higher than the local consumer price index.
Funds available to the County have decreased while the cost of providing services has increased resulting
in the County being unable to generate sufficient revenue to ensure citizen safety and adequately serve an
increasing population; and
Franklin County Resolution Number 2011-281 Page 1 of 4
WHEREAS, the 2003 Washington State Legislature noted that local governments are presented
with significant challenges in funding criminal justice services,and hence provided a legal means by which
Counties and Cities could seek local revenues to better protect the health, safety, and welfare of its
residents. Said legal means came through the enactment of RCW 82.14.450 authorizing the Franklin
County legislative authority to submit a proposition to voters at a primary or general election that would
authorize sales and use tax at the rate of three-tenths of one percent (0.003) to be collected throughout
Franklin County. Said law requires one-third of such revenue collected be used for "criminal justice
purposes," including"...the construction, improvement, and expansion of existing Franklin County Jail, E-
911 Dispatch, Sheriff's Department, and related facilities, RCW 82.14.450(5); RCW 82.14.340(5). All
improvements and new construction shall be "basic design;" and
WHEREAS, the expansion, improvement, operation, and maintenance of the County Jail would
relieve jall overcrowding therein and amounts to a proper use of revenue for "criminal justice,purposes"
per RCW 82.14,450(5); and
WHEREAS, other public purposes would be accomplished through expansion, improvement,
operation, and maintenance of other county offices, departments, and facilities used by or providing
ancillary services to the County Jail; and
WHEREAS, Washington State Law requires the revenue received under this proposal to be
shared with sixty (60) percent retained by the County, and the remaining forty (40) percent to be retained
and distributed on a per capita basis to the Cities therein and the estimated collection for the County's
60% portion is approximately $1.7 million per year and the estimated collection for the Cities is
approximately$1.1 million to be distributed on a per capita basis.
WHEREAS, Washington State Law requires for the passage of this proposal a majority of fifty
percent (50%) +1, of persons voting at a primary or general election must approve. The next general
election is November 8, 2011; and
WHEREAS, Franklin County will conduct a county wide mail-in ballot election at the next general
election on November 8, 2011,and
WHEREAS, if the voters approve this proposal on November 8, 2011, the additional sales and
use tax will be collected beginning on January 1, 2012, and jurisdictions will begirt receiving revenue in
February 2012; and
WHEREAS, interest rates are at historic lows, al;owing substantial savings on a 30-year bond and
construction costs are estimated 15 to 18 percent lower than recent years; and
WHEREAS, it is the judgment of this Board that the citizens of Franklin County should be offered
the opportunity to accept or reject a special tax levy of this kind; and
WHEREAS, if approved, the special tax should be levied beginning in 2012 with three-tenths of
one percent (0.003)of said tax to be collected for a period of thirty years; now therefore,
BE IT HEREBY RESOLVED BY THE BOARD OF THE COUNTY COMMISSIONERS OF
FRANKLIN COUNTY that a county wide mail-in ballot election be held on November 8, 2011, for the
purpose of submitting to the affected voters the determination of whether or not to authorize a sales and
use tax at the rate of three-tenths of one percent (0.003) for thirty years to be levied beginning in 2012 in
the absence of further action by the voters and the proceeds to be shared pursuant to RCW 82.14.450 by
the County and Cities therein for the aforementioned purposes; and
Franklin County Resolution Number 2011-281 Page 2 of 4
IT IS FURTHER RESOLVED that the Franklin County Auditor is hereby requested to place a proposition
on the November 8, 2011 ballot in substantially the following form:
PROPOSITION NO. 1
FRANKLIN COUNTY
COUNTY AND CITIES' CRIMINAL JUSTICE AND PUBLIC SAFETY TAX
"The Board of Franklin County Commissioners adopted Resolution No. 2011-.
concerning a proposition for a county and cities' criminal justice sales and use tax. This
proposition would authorize the sales and use tax in Franklin County and cities therein be
increased three-tenths of one parcont (0.003) for thirty years to improve public safety,
including criminal gang suppression, and to expand, operate, and maintain the County
jail, Pasco Municipal Courts, and the Pasco Police Department, and in support of other
criminal justice and public safety purposes. Should this proposition be approved?
Yes.........................Ci
No....................—Fl"
BE IT FURTHER RESOLVED that the Board of County Commissioners of Franklin County
recognizes any resolutions from Cities therein urging support of the local option sales and use tax, which
revenue would be allocated pursuant to Chapter 82.14 RCW, with sixty percent going to the County. The
remaining forty percent of the revenue shall go to the Cities therein on a per capita basis. The revenue
allocation to the Cities for each subsequent year shall be calculated using the final, official June 30th
population figures published by the Office of Financial Management;and
BE IT FURTHER RESOLVED that the Clerk of the Board is directed to provide a copy of this
resolution to the Franklin County Auditor, and each City therein in Franklin County.
Done this AQ day of August, 2011.
BOARD OF COUNTY COMMISSIONERS
FRANKLI LINTY, ASHINGTON
Robert E. ch, Chairperson
Rick Miller, Chair Pro Tern
�Z—�
Brad Peck, Member
ATTEST:
Clerk oft Board
Franklin County Resolution Number 2011-281 Page 3 of 4
APPROVED AS TO FORM:
f:�o
Rya E. Vdrhulp
Deputy Prosecuting Attorney
Franklin County Resolution Number 2011-281 Page 4 of 4
RESOLUTION NO,
A RESOLUTION endorsing the Public Safety Sales Tax measure on the
November 2011 ballot and urging city voters to approve the same.
WHEREAS, the City contracts with Franklin County for housing of City misdemeanant
offenders being adjudicated through Pasco Municipal Court, so having adequate jail space for
pre-trial as well as post- confinement of felons and misdemeanants alike is critically important to
the maintenance of public safety in the greater Pasco community; and
WHEREAS, the City has operated its Municipal Court within space at the Franklin
County Courthouse under terms of a 40-year lease which will expire in 2012; and
WHEREAS, the Franklin County Commission and Pasco City Council previously
considered the efficiencies to be gained for both parties and jointly concluded that the citizens
and taxpayers of all of Franklin County will be greatly benefilted if Pasco Municipal Court
functions can be housed, long term, at the Franklin County Courthouse; and
WHEREAS, Franklin County has planned for construction of a new 225 bed jail as well
as renovation of the old jail and would accommodate construction of new municipal court space,
at City cost, as part of that project; and
WHEREAS, the cost of such a facility requires the issuance of debt by the County, the
repayment of which will require a voter-approved source of revenue; and
WHEREAS, the Franklin County Commission and the Pasco City CuLmeil have
previously considered the only two available options, an excess property tax levy or a three-
tenths of one percent sales tax increase; and
WHEREAS, Pasco City Council finds that the sales tax option is much preferred because
it provides sufficient funding for construction of both the jail and court facilities but will also
provide sufficient funds for operation of those and other public safety functions throughout the
County as well as the City and avoids an increase in the existing property tax burden on owners
of property throughout the County, including the city; and
WHEREAS, the Franklin County Commission has placed a three-tenths sales tax
increase proposal on the November 2011 general election ballot which, if approved by voters,
would generate sullcient funds to construct and operate the new County jail as well as a new
municipal court, City police station and improved gang suppression and other public safety
purposes; NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO
RESOLVE AS FOLLOWS:
Section 1. The Pasco City Council strongly endorses the sales tax ballot measure for the
stated purposes and, further, urges voters of the City to vote for the ballot measure in November
2011.
PASSED by the City Council of the City of Pasco at its regular meeting dated this 15th
day of August, 2011.
Matt Watkins, Mayor
ATTEST;
Debra Clark, City Clerk
APPROVED AS TO FORM:
Leland B. Ken-, City Attorney
Public Safety Sales Tax Measure
Page 2
AGENDA REPORT
FOR: City Council August 10, 2011
TO: Gary Crutchfi t Manager Regular Mtg.: 8/15/11
FROM: Stan Strebel, Dieputy City Manage
SUBJECT: Refunding 2001 Limited Tax General Obligation Bonds
1. REFERENCE(S):
1. Savings Summary from Piper Jaffray dated July 27, 2011
2. Proposed Ordinance
Il. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
8/15; MOTION: 1 move to adopt Ordinance No. , relating to contracting
indebtedness; providing for the issuance of par value of
Limited Tax General Obligation Refunding bonds, 2011, of the
City to provide part of the funds with which to pay the cost of
refunding the City's outstanding Limited Tax General Obligation
and Refunding Bonds. 2001 and paying the administrative costs of
such refunding and the costs of issuance and sale of such bonds;
providing for and authorizing the purchase of certain obligations
out of the proceeds of the sale of the bonds herein authorized and
for the use and application of the money derived from those
investments; authorizing the execution of an agreement with U.S.
Bank National Association of Seattle, Washington, as refunding
trustee; providing for the call, payment and redemption of the
outstanding bonds to be refunded; fixing the terms and covenants
of the bonds; and providing for related.matters.
11I. FISCAL IMPACT:
Estimated net present value savings of$455,000; issue of$4,190,000 bonds.
1V. 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 "A2") will
positively impact the City's savings on this issue through lower interest rates.
V. DISCUSSION:
A) Daren Bell, of Piper Jaffray, plans to attend the meeting of August 15 to present
the results of the bond sale and the bond purchase agreement.
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.
8(a)
Pipe"Jagrav,
SAVINGS
City of Pasco, WA Limited Tax General Obligation Bonds
Refunding 2001 LTGO Bonds
Present Value
Prior Refunding to 09/01/2011
Date Debt Service Debt Service Savings @ 2.4721098%
12/01f2011 104,337.50 89,125.00 15,212.50 15,119.35
12/01/2012 598,675,00 545,400.00 53,275.00 52,102.85
12101/2013 600,930.00 547,200.00 53,730.00 51,213.02
1210112014 601,865.00 548,800.00 53,065.00 49,295.25
12/01/2015 601,440.00 545,900.00 55,540.00 50,286.55
121002016 599,840.00 542,700.00 57,140.00 50,426.82
12/01x2017 601,810.00 544,200.00 57,610.00 49,555.53
12)01i2018 602,307.50 545,600.00 56,707.50 47.567.04
12101 12019 601,307.50 546,200.00 55,1 07.50 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
Savin s Summa
YV of savings from cash flow 452,731.76
Plus.Refunding funds on hatid 2,393.68
Net PV Savings 455,625.44
Jul 27,2011 1 0:13 am Prepared by Piper Jufftay&Cu. (finance 6.020 Pesco:RF", DIG) Pane 8
DRAFT DATED 8/5/2011
CITY OF PASCO, WASHINGTON
ORDINANCE NO.
AN ORMNANCC of the City of Pasco, Washington, relating to
contracting indebtedness; providing for the issuance of par value of
Limited Tax General Obligation Refunding Bonds, 2011, of the City to provide
part of the fmids with which to pay the cost of refunding the City's outstanding
Limited Tax General Obligation. and Refunding Bonds, 2001 and paying the
administrative costs of such refunding and the costs of issuance and sale of such
bonds; providing for and authorizing the purchase oFcertain obligations out of the
proceeds of the sale of the bonds herein authorized and for the use and application
of the money derived from those investments; authorizing the execution of an
agreement with U.S. Bank National Association of' Seattle, Washington, as
refunding trustee; providing; for the call; payment and redemption of the
outstanding bonds to be refunded; fixing the terms and covenants of the bonds;
and providing for related matters.
Passed August_, 2011
Thin document prepared by:
Foster Pepper PLLC
1111 Third Avenue, Suire 3400
Seattle, Washington 98101
(106) 447-4400
5115]?66
TABLE OF CONTENTS
Page
Section1, [)efiDiti0Ux ................................—.......................... .................................................l
Section 2. Recitals and Findings................................................................................... ...........3
Section3. Debt Cnnxciiy .......................................................... ...............................................4
Section 4. Authorization nf Bonds ...........................................................................................5
Section 5, Description nf Bonds...............................................................................................5
Section 6. Bond Registrar; Registration and Transfer OfBonds —...........--.----...5
Section 7, Form and Execution of Bonds..... ...........................................................................6
Section 8. Payment of Bonds......... ............ .............................................................................7
Section 9. Redemption Provisions and Open Market Purchase 0f Bonds................................7
Section10. Pledge ut Taxes ............................... .......................................................................8
Section 11, Tax Covenants; [}eSjguati0O of Bonds as "Qualified Tax-Exempt
Obligations....---.---^--.—.~.......—...--.—.—..--..~..---8
Section 12. Refunding ozDefeamaDceof the Bonds ...................................................................4
Section 13. Bond Fund and Deposit v[Bond Proceeds............................... ............................ 9
Section 14. Refunding of the Refunded Bonds ..........................................................................9
5eoLino 15. Call for Redemption 0fthc Refunded Bonds ........................................................ll
Section 16. City Findings with Respect tn Refunding..............................................................ll
Section 17. Undertaking 10Provide Continuing Disclosure............................... ..................... l2
Section 18. Approval of Bond Purchase Contract; Delivery 0F Bonds....................................l4
Section 19. (]ffioiUJStatement.... ..................... ................................ ......................................}4
Section 20. General Authorization and Qalficatiun.................................................................}5
Section21, SeYurability................................................... ........................................................ l5
Section '2. Effective Date of Ordinance................ ...... ..........................................................l5
51153266
CITY OF PASCO, WASHINGTON
ORDINANCE NO,
AN ORDINANCE of the City of Pasco, Washington, relating to
contracting indebtedness; providing for the issuance of J par value of'
Limited Tax General Obligation Refunding Bonds, 2011, of the City to provide
part of the funds with which to pay the cost of refunding the City's outstanding
Limited Tax Gcncral Obligation and Refunding Bonds, 2001 and paying the
administrative costs of such refunding and the costs of issuance and sale of such
bonds; providing for and authorizing the purchase of certain obligations out of the
proceeds of the sale of the bonds herein authorized and for the use and application
of the money derived from those investments; authorizing the execution of an
agreement with U.S. Bank National Association of Seattle, Washington, as
refunding trustee; providing for the call, payment and redemption of the
outstanding bonds to be refunded; fixing the terms and covenants of the bonds;
and providing for related matters.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS
FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following words shall have the
following meanings:
(a) "Authorized Denomination" means $5,000 or any integral multiple thereof
within a maturity.
(b) "Acquired Obligations" means those United States Treasury Certificates
of Indebtedness, Notes, and Bonds--State and Local Government Series and other direct,
noncallable obligations of the United States of America purchased to accomplish the refunding
of the Refunded Bonds as authorized by this ordinance.
(c) "Beneficial Owner" means the owner of any beneficial interests in the
Bonds.
(d) "Bond Fund" means the Limited Tax General Obligation Refunding Bond
Fund, 2011, created by this ordinance for the payment of the Bonds.
(e) "Bond Register" means the books or records maintained by the Bond
Registrar.
(f) "Bond Registrar" means the Fiscal Agent,
(g) "Bonds" means the [ ] par value Limited Tax General
Obligation Refunding Bonds, 2011, of the City issued pursuant to and for the purposes provided
in this ordinance.
(h) "2001 Bonds" means the Limited Tax General Obligation and Refunding
Bonds, 2001, of the City issued pursuant to Ordinance No. 3463, for the purpose of(i) providing
funds with which to pay and redeem the City's outstanding Limited Tax General Obligation
Bond Anticipation Notes, 1999, which were issued for general City purposes, including the
acquisition and construction of the Softball Fields Project, the Civic Center Project, the Library
Project and the Fire Station Project; and (ii) provide funds with which to pay the cost of advance
refunding a portion of the City's outstanding Limited Tax General Obligation Bonds, 1994,
Series B, which were issued for the purpose of providing the funds to pay part of the cost of
acquiring and equipping a new civic center located at McLaughlin School, including City
government offices and an activity center and to pay part of the cost of acquiring and
constructing a new spoils stadium.
(i) "City" means the City of Pasco, Washington, a municipal corporation duly
organized and existing under the laws of the State.
0) "City Council" means the governing body of the City, acting in its
legislative capacity.
(k) "Code" means the United States Internal Revenue Code of 1986, as
amended, and applicable rules and regulations promulgated thereunder.
(1) "DTC" means The Depository Trust Company, New York, New York.
(m) "Finance Manager" means the Finance Manager of the City or the
successor officer.
(n) "Fiscal Agent" means the fiscal agent of the State, as the same may be
designated by the State from time to time.
(o) "Letter of Representations' means the Blanket Issuer Letter of
Representations dated August 31, 1998, between the City and DTC, as it may be amended from
time to time.
(p) "MSRB" means the Municipal Securities Rulemaking Board.
(q) "Owners" means, without distinction, the Registered Owner(s) and the
Beneficial Owner(s),
(r) "Refunded Bonds" means the Limited Tax General Obligation and
Refunding Bonds, 2001, of the City, maturing in the years 2012 through 2018, inclusive and
2020, issued pursuant to Ordinance No. 3463, the refunding of which has been provided for by
this ordinance.
(s) "Refunding Plan"means:
(i) the placement of sufficient proceeds of the Bonds which,
with other money of the City, if necessary, will acquire the Acquired
2
5 1 s s:aau 3
Obligations to be deposited, with cash, if necessary, with the Refunding
Trustee;
(ii) the payment of the principal of and interest on the
Refunded Bonds when due up to and including December 1, 2011, and the
call, payment, and redemption on December 1, 2011, of all of the then-
outstanding Refunded Bonds at a price of par plus accrued interest to
December 1, 2011; and
(iii) the payment of the costs of issuing the Bonds and the costs
of carrying out the Reftinding Plan.
(t) "Refunding Trust Agreement" means a Refunding Trust Agreement
between the City and the Refunding Trustee substantially in the form of that which is on file with
the City Clerk and by this reference incorporated herein.
(u) "Refunding Trustee" means U.S. Bank National Association, Seattle,
Washington, serving as trustee or escrow agent or any successor trustee or escrow agent.
(v) "Registered Owner" means the person in whose name a Bond is registered
on the Bond Register, For so long as the City utilizes the book—entry system for the Bonds under
the Letter of Rcpresentations, Registered Owner shall mean DTC.
(w) "Registration Ordinance" means City Ordinance No. 2845 establishing a
system of registration for the City's bonds and other obligations.
(x) "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
(y) "SEC" means the United States Securities and Rxchange Commission.
(z) "State" means the State of Washington.
(aa) ["Term Bonds" means those bonds maturing in.,
(bb) "Undertaking" means the continuing disclosure agreement set forth in
Section 17 of this ordinance.
(cc) "Underwriter" means Piper Jaffray & Co. of Seattle, Washington,
Section 2. Recitals and Findings,
(a) Outstanding Bonds. There are presently outstanding $4,280,000 par value
of 200I Bonds maturing on December l of each of the years 201 l through 2018, inclusive, and
in year 2020 and bearing various interest rates from 4.25% to 5,05%.
3
51153.66 1
r
(b) Findings With Respect to Refunding.
W Background. Pursuant to Ordinance No. 3463, the City
heretofore issued its $6,900,000 par value Limited Tax General Obligation and
Refunding Bonds, 2001, for the purpose of (i) providing funds with which to pay
and redeem the City's outstanding Limited "lax General Obligation Bond
Anticipation Notes, 1999 and (ii) provide funds with which to pay the cost Of
advance refunding a portion of the City's outstanding Limited Tax General
Obligation Bonds, 1994, Series B, and by that ordinance reserved the right to
redeem the 2001 Bonds prior to their maturity on December 1, 2011, at a price of
par plus accrued interest to the date fixed for redemption.
(ii) Substantial Savings. After due consideration, it appears to
the City Council that the Refunded Bonds may be refunded by the issuance and
sale of the Limited Tax General Obligation Refunding Bonds, 2011 authorized
herein (the "Bonds") so that a substantial savings will be effected by the
difference between the principal and interest cost over the life of the Bonds and
the principal and interest cost over the Iife of the Refunded Bonds but for such
refunding, which refunding will be effected by carrying out the Refunding Plan.
(iii) Effeci of Refunding Plan. To effect that refunding in the
manner that will be most advantageous to the City, it is found necessary and
advisable that certain Acquired Obligations bearing interest and maturing at such
time or times as necessary to accomplish the refunding as aforesaid be purchased
out of a portion of the proceeds of the Bonds.
(c) Purchase Offer. The Underwriter has offered to purchase the Bonds under
the terms and conditions set forth in this ordinance and in the Purchase Contract (hereinafter
defined).
(d) Issuance of the Bonds. Based on the foregoing, the City Council deems it
to be in the best interests of the City to issue and sell the Bonds to pay the cost of carrying out
the Reffinding Plan.
Section 3. Debt Capacity, The assessed valuation of the taxable property within the
City as ascertained by the last preceding assessment for City purposes for the calendar year 2011
is $3,100,250,228.
(a) The City has outstanding general indebtedness as follows:
(i) Limited tax general obligation bonds and loans outstanding
in the principal amount of$7,434,033, which is incurred within the limit of up to
1'/z% of the value of the taxable property within the City permitted for general
municipal purposes.
(ii) Unlimited tax general obligation bonds for capital purposes
only outstanding in the principal amount of $1,950,000 for general municipal
purposes; $0 for City-owned water, artificial light, and sewers; and $0 for
4
511 s1?6u 3
acquiring or developing open space, park facilities, and capital facilities
associated with economic development, The debt described in this paragraph is
unlimited tax general obligation debt and incurred with the approval of the
requisite number of the City's qualified voters, within the limit of up to 2%z% of
the value of the taxable property within the City for general municipal purposes
(when combined with the outstanding limited tax general obligation
indebtedness), 21/2% for utility purposes and 21/2% for open space and economic
development purposes.
(b) The amount of indebtedness authorized by this ordinance is
and is issued within the limitation permitted for general municipal purposes without a vote.
Section 4. Purpose and Authorization f'Bonds. The City shall borrow money on the
credit of the City and issue negotiable limited tax general obligation bonds evidencing that
indebtedness in the amount of [ I to accomplish the Refunding Plan, and pay the
costs of issuance and sale of the Bonds.
Section 5. Description of Bonds. The Bonds shall be called City of Pasco,
Washington, Limited Tax General Obligation Refunding Bonds, 2011. The Bonds shall be
issued in the aggregate principal amount of [ J; shall be dated their date of initial
delivery to the Underwriter; shall be in Authorized Denominations; and shall be numbered
separately in the manner and with any additional designation as the Bond Registrar deems
necessary for purposes of identification.
The Bonds shall bear interest at the rates per annum (computed on the basis of a 360-day
year of twelve 30-day months) payable semiannually on each June 1 and December 1,
commencing December 1, 2011, to the maturity of the Bonds; and shall mature on December 1
in years and amounts and bear interest at the rates per annum as set forth in Exhibit A. which is
attached to this ordinance and incorporated by this reference.
Section 6. Bond Registrar; Registration and Transfer of Bonds,
(a) Registration of Bonds, The Bonds shall be issued only in registered form
as to both principal and interest and shall be recorded on the Bond Register.
(b) Bond Registrar. The Bond Registrar shall keep, or cause to be kept,
sufficient books for the registration and transfer of the Bonds, which shall be open to inspection
by the City at all times. The Bond Register shall contain the name and mailing address of the
Registered Owner of each Bond and the principal amount and number of each of the Bonds held
by each Registered Owner.
The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds
transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to
serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers
and duties under this ordinance and City's Registration Ordinance.
The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become either a
5
51153166 3
Registered or Beneficial Owner of Bonds with the same rights it would have if it were not the
Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of
its officers or directors to act as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Beneficial Owners.
Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any Authorized
Denomination of an equal aggregate principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to
the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee.
The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days
preceding any principal payment or redemption date.
(c) DTC and the Book Entry System. The Bonds initially shall be registered
in the name of Cede & Co., as the nominee of DTC, The Bonds so registered shall be held in
fully immobilized form by DTC as depository in accordance with the provisions of the Letter of
Representations. Neither the City nor the Bond Registrar shall have any responsibility or
obligation to DTC participants or the persons for whom they act as nominees with respect to the
Bonds regarding accuracy of any records maintained by DTC or DTC participants of any amount
in respect of principal of or interest on the Bonds, or any notice which is permitted or required to
be given to Registered Owners hereunder (except such notice as is required to be given by the
Bond Registrar to DTC).
For as long as any Bonds are held in fully immobilized form, DTC, its nominee or its
successor depository shall be deemed to be the Registered Owner for all purposes hereunder and
all references to registered owners. bondowners, bondholders or the like shall mean DTC or its
nominee and, except for the purpose of the City's undertaking herein to provide continuing
disclosure, shall not mean the Beneficial Owners. Registered ownership of such Bonds; or any
portions thereof, may not thereafter be transferred except: (i) to any successor of DTC or its
nominee, if that successor shall be qualified under any applicable laws to provide the services
proposed to be provided by it; (ii) to any substitute depository appointed by the City or such
substitute depository's successor; or (iii) to any person if the Bonds are no longer held in
immobilized form,
Upon the resignation of DTC or its successor (or any substitute depository or its
successor) from its functions as depository, or a determination by the City that it no longer
wishes to continue the system of book entry transfers through DTC or its successor (or any
substitute depository or its successor), the City may appoint a substitute depository. Any such
substitute depository shall be qualified under any applicable laws to provide the services
proposed to be provided by it.
If (i) DTC or its successor (or substitute depository or its successor) resigns from its
functions as depository, and no substitute depository can be obtained or (ii) the City determines
that the Bonds are to be in certificated form, the ownership of Bonds may be transferred to any
person as provided herein and the Bonds no longer shall be held in fully immobilized form.
Section 7. Form and Execution of Bonds. The Bonds shall be prepared in a form
consistent with the provisions of this ordinance and state law and shall be signed by the Mayor
6
S N 532EE 7
and 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 Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the
benefits of this ordinance: "Certificate Of Authentication. This Bond is one of the fully
registered City of Pasco, Washington, Limited Tax General Obligation Refunding Bonds, 2011,
described in the Bond Ordinance." The authorized signing of a Certificate of Authentication
shall be conclusive evidence that the Bond so authenticated has been duly executed,
authenticated and delivered and is entitled to the benefits of this ordinance.
If any officer whose manual or facsimile signature appears on the Bonds ceases to be an
officer of the City authorized to sign bonds before the Bonds bearing his or her manual or
facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City,
those Bonds nevertheless may be authenticated, issued and delivered and, when authenticated,
issued and delivered, sha11 be as binding on the City as though that person had continued to be an
officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City
by any person who, on the actual date of signing of the Bond, is an officer of the City authorized
to sign bonds, although he or she did not hold the required office on the date of issuance of the
Bonds.
Section S. Payment of Bonds. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. For as long as the Bonds are
registered in the name of DTC or its nominee, payment of principal of and interest on the Bonds
shall be made in the manner set forth in the Letter of Representations. If the Bonds cease to be
in book-entry-only form, interest on the Bonds shall be paid by checks or drafts of the Bond
Registrar mailed on the interest payment date to the Registered Owners at the addresses
appearing on the Bond Register on the 15th day of the month preceding the interest payment date
or by electronic transfer on the interest payment date. The City shall not be required to make
electronic transfers except to a Registered Owner of Bonds pursuant to a request in writing and at
the sole expense of that Registered Owner at least 10 days before an interest payment date.
Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the
Registered Owners to the Bond Registrar.
Section 9. Redemption Provisions and Open Market Purchase of Bonds,
(a) Optional Redemption. The Bonds shall be issued without the right or
option of the City to redeem the Bonds prior to their stated maturity. [NOTE— Provisions to be
added for Term Bonds, dependent on pricing.]
(b) Open Market Purchase. The City reserves the right and option to purchase
any or all of the Bonds in the open market at any time at any price acceptable to the City plus
accrued interest to the date of purchase.
(c) Cancellation of Bonds. All Bonds purchased under this section shall be
canceled.
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51153?fio 1
(d) Failure To Redeem Bonds. if any Bond is not redeemed when properly
presented at its maturity, the City shall be obligated to pay interest on that Bond at the same rate
provided in the Bond from and after its maturity until that Bond, both principal and interest, is
paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund and
the Bond has been called for payment by giving notice of that call to the Registered Owner.
Section 10. Pledge of Tapes. For as tong as any of the Bonds are outstanding, the City
irrevocably pledges to include in its budget and levy taxes annually, within the constitutional and
statutory tax limitations provided by law without a vote of the electors of the City, on all of the
taxable property within the City in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of and interest on the Bonds.
The full faith, credit and resources of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal and interest.
Section 11, Tax Covenants; Designation of Bonds as "Qualified Tax-Exempt
Obligations._
(a) Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds from being included in
gross income for federal income tax purposes, and it will neither take any action nor make or
permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be
included in gross income for federal income tax purposes. The City also covenants that it will, to
the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the
Bonds, take all actions necessary to comply (or to be treated as having complied) with those
requirements in connection with the Bonds, including the calculation and payment of any
penalties that the City has elected to pay as an alternative to calculating rebatable arbitrage, and
the payment of any other penalties if required under Section 148 of the Code to prevent interest
on the Bonds from being included in gross income for federal income tax purposes.
(b) Small Governmental Issuer Arbitrage Rebate Exception and Designation
of Bonds as "Qualified Tax-Exempt Obliaations." The City finds and declares that (a) it is a
duly organized and existing governmental unit of the State and has general taxing power; (b) no
Bond which is part of this issue of Bonds is a "private activity bond" within the meaning of
Section 141 of the Code; (c) at least 95% of the net proceeds of the Bonds will be used ibr local
governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely
within the jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations
(other than private activity bonds and other obligations not required to be included in such
calculation) issued by the City and all entities subordinate to the City (including any entity that
the City controls, that derives its authority to issue tax-exempt obligations from the City, or that
issues tax-exempt obligations on behalf of the City) during the calendar year in which the Bonds
are issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt
obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations"
for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds
are issued does not exceed $10,000.000. The City therefore certifies that the Bonds are eligible
for the arbitrage rebate exception under Section 148(f)(4)(D) of the Code and designates the
Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code.
8
5115322663
Section 12. Refunding or Defeasance of' the Bonds. The City may issue refunding
bonds pursuant to the laws of the State or use money available from any other lawful source to
pay when due the principal of and interest on the Bonds, or any portion thereof'included in a
refunding or defeasance plan, and to redeem and retire, refund or defease all such then-
outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the costs of
the refunding or defeasance. if money and/or "government obligations" (as defined in chapter
39.53 RCW, as now or hereafter amended) maturing at a time or times and bearing interest in
amounts (together with money, if necessary) sufficient to redeem and retire, refund or defease
the defeased Bonds in accordance with their terms are set aside in a special trust fund or escrow
account irrevocably pledged to that redemption, retirement or defeasance of defeased Bonds
(hereinafter called the "trust account"), then all right and interest of the Owners of the defeased
Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment
of the defeased Bonds shall cease and become void. The Owners of defeased Bonds shall have
the right to receive payment of the principal of and interest on the defeased Bonds from the trust
account. The City shall include in the refunding or defeasance plan such provisions as the City
deems necessary for the random selection of any defeased Bonds that constitute less than all of a
particular maturity of the Bonds, for notice of the defeasance to be given to the owners of the
defeased Bonds and to such other persons as the City shall determine, and for any required
replacement of Bond certificates for defeased Bonds. The defeased Bonds shall be deemed no
longer outstanding, and the City may apply any money in any other fund or account established
for the payment or redemption of the defeased Bonds to any lawful purposes as it shall
determine.
If the Bonds are registered in the name of DTC or its nominee, notice of any defeasance
of Bonds shall be given to DTC in the manner prescribed in the Letter of Representations for
notices of redemption of Bonds.
Section 13. Bond fund and Deposit of Bond Proceeds. The Bond Fund is hereby
created and established in the office of the Finance Manager as a special fund designated the
Limited Tax General Obligation Bond Fund, 2011, for the purpose of paying principal of and
interest on the Bonds. All taxes and other amounts allocated to the payment of the principal of
and interest on the Bonds shall be deposited in the Bond Fund.
Section 14. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. U.S. Bank National Association of Seattle;
Washington, is appointed Refunding Trustee,
(b) Use of Bond Proceeds: A!:quisition of Acruired Obli atg ions, A sufficient amount
of the proceeds of the sale of the Bonds, shall be deposited immediately upon the receipt thereof
with the Refunding Trustee and used to discharge the obligations of the City relating to the
Refunded Bonds under Ordinance No, 3463 by providing for the payment of the amounts
required to be paid by the Refunding Plan, To the extent practicable, such obligations shall be
discharged fully by the Refunding Trustee's simultaneous purchase of the Acquired Obligations,
bearing such interest and maturing as to principal and interest in such amounts and at such times
so as to provide, together with a beginning cash balance, if necessary, for the payment of the
amount required to be paid by the Refunding Plan. The Acquired Obligations are listed and
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511526(,3
more particularly described in Exhibit A attached to the Refunding Trust Agreement between the
City and the Refunding Trustee, but are subject to substitution as set forth below. Any Bond
proceeds or other money deposited with the Refunding Trustee not needed to purchase the
Acquired Obligations and provide a beginning cash balance, if any, and pay the costs of issuance
of the Bonds shall be returned to the City at the time of delivery of the Bonds to the initial
purchaser thereof and deposited in the Bond Fund to pay interest on the Bonds on the first
interest payment date.
(c) Substitution of Ac 4a_Ql�1igglans. Prior to the purchase of any Acquired
Obligations by the Refunding 'Trustee, the City reserves the right to substitute other direct,
noncallable obligations of the United States of America ("Substitute Obligations") for any of the
Acquired Obligations and to use any savings created thereby for any lawful City purpose if, (a)
in the opinion of Foster Pepper PLLC, the City's bond counsel, the interest on the Bonds and the
Refunded Bonds will remain excluded from gross income for federal income tax purposes under
Sections 103, 148, and 149(d) of the Code, and (b) such substitution shall not impair the timely
payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally
recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Substitute Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds or the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
effect on the date of such substitution and applicable to obligations issued on the issue dates of
the Bonds and the Refunded Bonds, as applicable, and that the City obtain, at its expense: (1) a
verification by a nationally recognized independent certified public accounting firm acceptable
to the Refunding Trustee confirming that the payments of principal of and interest on the
substitute securities, if paid when due, and any other money held by the Refunding 'Trustee will
be sufficient to carry out the Refunding Plan; and(ii) an opinion from Foster Pepper PLLC, bond
counsel to the City, its successor, or other nationally recognized bond counsel to the City, to the
effect that the disposition and substitution or purchase of such securities, under the statutes,
rules, and regulations then in force and applicable to the Bonds, will not cause the interest on the
Bonds or the Refunded Bonds to be included in gross income for federal income tax purposes
and that such disposition and substitution or purchase is in compliance with the statutes and
regulations applicable to the Bonds. Any surplus money resulting from the sale, transfer, other
disposition, or redemption of the Acquired Obligations and the substitutions therefor shall be
released from the trust estate and transferred to the City to be used for any lawful City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or Substitute Obligations) and to make the
payments required to be made by the Refunding Plan from the Acquired Obligations (or
Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance. All Acquired Obligations (or Substitute Obligations) and the money deposited with
the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied
in accordance with the provisions of Ordinance No. 3463, this ordinance, chapter 39.53 RCW
and other applicable statutes of the State of Washington and the Refunding Trust Agreement.
All necessary and proper fees, compensation, and expenses of the Refunding Trustee for the
10
i 1 153256.1
Bonds and all other costs incidental to the setting up of the escrow to accomplish the refunding
of the Refunded Bonds and costs related to the issuance and delivery of the Bonds, including
bond printing, verification fees, [bond insurance premium,] bond counsel's fees, and other
related expenses, shall be paid out of the proceeds of the Bonds.
(e) Authorization for Refunding Trust Agreement,. To carry out the Refunding Plan
provided for by this ordinance, the Deputy City Manager or Finance Manager of the City is
authorized and directed to execute and deliver to the Refunding Trustee a Refunding Trust
Agreement substantially in the form on file with the City Clerk and by this reference made a part
hereof setting forth the duties, obligations and responsibilities of the Refunding Trustee in
connection with the payment, redemption, and retirement of the Refunded Bonds as provided
herein and stating that the provisions for payment of the fees, compensation, and expenses of
such Refunding Trustee set forth therein are satisfactory to it. Prior to executing the Refunding
Trust Agreement, the Deputy City Manager or Finance Manager of the City is authorized to
make such changes therein that do not change the substance and purpose thereof or that assure
that the escrow provided therein and the Bonds are in compliance with the requirements of
federal law governing the exclusion of interest on the Bonds from gross income for federal
income tax purposes.
Section 15. Call for Redemption of the Refunded Bonds. The City calls for
redemption on December 1, 2011, all of the Refunded Bonds at a price of par plus accrued
interest, Such call for redemption shall be irrevocable after the delivery of the Bonds to the
initial purchaser thereof. The date on which the Refunded Bonds are herein called for
redemption is the first date on which those bonds may be called.
The proper City officials are authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required, pursuant to Ordinance No. 3463 in
order to effect the redemption prior to their maturity of the Refunded Bonds.
Section 16, City+ Findings with Respect to Refunding. The City Council of the City
finds and detennines that the issuance and sale of the Bonds at this time will effect a savings to
the City and is in the best interest of the City and its taxpayers and in the public interest. In
making such finding and determination, the City Council has given consideration to the fixed
maturities of the Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the
known earned income from the investment of the proceeds of the issuance and sale of the Bonds
pending payment and redemption of the Refunded Bonds,
The City Council further Finds and determines that the money to be deposited wMth the
Refunding Trustee for the Refunded Bonds in accordance with Section 14 of this ordinance will
discharge and satisfy the obligations of the City under Ordinance No. 3463 with respect to the
Refunded Bonds, and the pledges, charges, trusts, covenants, and agreements of the City therein
made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be
deemed to be outstanding under such ordinance immediately upon the deposit of such money
with the Refunding 'Trustee,
] 1
Si157?E6]
Section 17. Undertaking to Provide Continuing Disclosure. To meet the requirements
of paragraph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for the Bonds,
the City makes the following written Undertaking for the benefit of holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice of
Listed Events. The City undertakes to provide or cause to be provided, either directly or through
a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB,
accompanied by identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type
included in the final official statement for the Bonds and described in
subsection (b) of this section ("annuaI financial information"),
(ii) Timely notice (not in excess of 10 business days after the
occurrence of the event) of the occurrence of any of the following events with
respect to the Bonds: (1) principal and interest payment delinquencies; (2) non-
payment related defaults, if material; (3) unscheduled draws on debt service
reserves reflecting financial difficulties; (4) unscheduled draws on credit
enhancements reflecting financial difficulties; (5) substitution of credit or
liquidity providers, or their failure to perform; (6) adverse tax opinions, the
issuance by the Internal Revenue Service of proposed or final determinations of
taxability, Notice of Proposed Issue (IRS Form 5701 — TEB) or other material
notices or determinations with respect to the tax status of the Bonds; (7)
modifications to rights of holders of the Bonds, if material; (S) bond calls (other
than scheduled mandatory redemptions of Term Bonds), if material, and tender
offers; (9) defeasances; (10) release, substitution, or sale of property securing
repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy,
insolvency, receivership or similar event of the City, as such "Bankruptcy Events"
are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation,
or acquisition involving the City or the sale of all or substantially all of the assets
of the City other than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if
material; and (14) appointment of a successor or additional trustee or the change
of name of a trustee, if material.
(iii) Timely notice of a failure by the City to provide required
annual financial information on or before the date specified in subsection (b) of
this section.
(b) Type of Annual Financial Information Undertaken to be Provided. The
annual financial information that the City undertakes to provide in subsection (a) of this section:
(i) Shall consist of (1) annual financial statements prepared
(except as noted in the financial statements) in accordance with applicable
generally accepted accounting principles applicable to State Iocal governmental
units such as the City, as such principles may be changed from time to time,
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which statements shall not be audited, except, however, that if and when audited
financial statements are otherwise prepared and available to the City they will be
provided; (2) outstanding general obligation bonds; (3) assessed valuation for the
fiscal year; (4) regular property tax levy rate and regular property tax levy rate
limit for the fiscal year; and (5) general fund revenues from other major tax
sources;
(ii) Shall be provided not later than the last day of the ninth
month after the end of each fiscal year of the City (currently, a fiscal year ending
December 31), as such fiscal year may be changed as required or permitted by
State law, commencing with the City's fiscal year ending December 31, 2010; and
(iii) May be provided in a single or multiple documents, and
may be incorporated by specific reference to documents available to the public on
the Internet website of the MSRB or filed with the SEC.
(c) Amendment of Undertaking. The Undertaking is subject to amendment
after the primary offering of the Bonds without the consent of any holder of any Bond, or of any
broker, dealer, municipal securities dealer, participating underwriter, rating agency or the MSRB,
under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice
to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. if the amendment changes the type of annual
financial information to be provided, the annual financial information containing the amended
financial information will include a narrative explanation of the effect of that change on the type
of information to be provided.
(d) Beneficiaries. The Undertaking evidenced by this section shall inure to
the benefit of the City and any Beneficial Owner of Bonds, and shall not inure to the benefit of or
create any rights in any other person.
(e) 'Termination of Undertaking, The City's obligations under this
Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's
obligations under this Undertaking shall terminate if those provisions of Rule 15c2-12 which
require the City to comply with this Undertaking become legally inapplicable in respect of the
Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other
counsel familiar with federal securities laws delivered to the City, and the City provides timely
notice of such termination to the MSRB.
()) Remedy for Failure to Comply with Undertaking. As soon as practicable
after the City learns of any failure to comply with the Undertaking, the City will proceed with
due diligence to cause such noncompliance to be corrected. No failure by the City or other
obligated person to comply with the Undertaking shall constitute a default in respect of the
Bonds. The sole remedy of any Beneficial Owner of-a Bond shall be to take such actions as that
Beneficial Owner deems necessary, including seeking an order of specific performance from an
appropriate court, to compel the City or other obligated person to comply with the Undertaking.
13
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(g) Designation_of Official Resrjonsible to Administer Undertaking,. The
Finance Manager of the City (or such other officer of the City who may in the future perform the
duties of that office) or his or her designee is authorized and directed in his or her discretion to
take such further actions as may be necessary, appropriate or convenient to carry out the
Undertaking of the City in respect of the Bonds set forth in this section and in accordance with
Rule 15c2-12, including, without limitation, the following actions:
(i) Preparing and filing the annual financial information
undertaken to be provided;
(ii) Determining whether any event specified in subsection (a)
has occurred, assessing its materiality, where necessary, with respect to the
Bonds,and preparing and disseminating any required notice of its occurrence;
(iii) Determining whether any person other than the City is an
"obligated person" within the meaning of Rule 15c2-12 with respect to the Bonds,
and obtaining from such person an undertaking to provide any annual financial
information and notice of listed events for that person in accordance with
Rule 15c2-12;
(iv) Selecting, engaging and compensating designated agents
and consultants, including but not limited to financial advisors and legal counsel,
to assist and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 18. ARproval of Bond Purchase Contract; Delivery of Bonds. The
Underwriter has presented a purchase contract (the "Purchase Contract") to the City offering to
purchase the Bonds under the terms and conditions provided in the Purchase Contract, which
written Purchase Contract is on file with the City Clerk. The City Council finds that entering
into the Bond Purchase Contract is in the City's best interest and accepts the offer contained
therein and authorizes its execution by the Finance Manager,
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Foster Pepper
PLLC, municipal bond counsel of Seattle, Washington, regarding the Bonds.
Section 19, Official Statement. The City has been provided with copies of a
preliminary official statement dated [August 9, 2011], prepared in connection with the sale of the
Bonds. For the sole purpose of the Underwriter's compliance with paragraph(b)(1) of Rule
15c2-12, the City "deems final" that Preliminary Official Statement as of its date, except for the
omission of information permitted to be omitted by Rule 15c2-12 and ratifies the distribution by
the Underwriter of that preliminary official statement to potential purchasers of the Bonds.
The City authorizes and approves the preparation, execution by the Finance Manager and
delivery to the Underwriter of a final official statement for the Bonds, in the form of the
preliminary official statement, with such modifications and amendments thereto as shall be
deemed necessary or desirable by the City, The City authorizes and approves the distribution by
14
51153?bb 3
the Underwriter of that final official statement to potential purchasers and purchasers of the
Bonds.
Section 20. General Authorization and Ratification. The Finance Manager, and other
appropriate officers of the City are severally authorized and directed to take any actions and to
execute documents as in their judgment may be necessary or desirable to carry out the terms of,
and complete the transactions contemplated by, this ordinance and the Purchase Contract
(including everything necessary for the prompt delivery of the Bonds to the Underwriter and for
the proper application, use and investment of the proceeds of the sale thereof), and all actions
heretofore taken in furtherance thereof and not inconsistent with the terms of this ordinance are
ratified and confirmed in all respects.
Section 21. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all
appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as
to any person or circumstance, such offending provision shall, if feasible, be deemed to be
modified to be within the limits of enforceability or validity. However, if the offending
provision cannot be so modified, it shall he null and void with respect to the particular person or
circumstance, and all other provisions of this ordinance in all other respects, and the offending
provision with respect to all other persons and all other circumstances, shall remain valid and
enforceable.
Section 22. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Pasco,
Washington, at an open public meeting thereof, this day of August, 2011,
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Foster Pepper PLLC, Bond Counsel
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51153266 3
EXHIBIT A
Bond Maturity Schedule:
Maturity Years Amounts Interest Rates
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CERTIFICATION
I, the undersigned, City Clerk of the City of City, Washington (the "City"), hereby certify
as follows:
I, The attached copy of Ordinance No. ___ (the "Ordinance") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City
held at the regular meeting place thereof on August _, 2011, as that ordinance appears on the
minute book of the City; and the Ordinance will be in full force and effect five days after
publication in the City's official newspaper; and
2. A quorum of the members of the City Council was present throughout the
meeting and a majority of the members voted in the proper manner for the passage of the
Ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this day of August, 2011.
CITY OF PASCO, WASHINGTON
Debra L, Clark, City Clerk
AGENDA REPORT
FOR: City Council August 2, 2011
TO: Gary Crutch"' t Manager Workshop Mtg.: 8/8/11
Regular Mtg.: 8/15/11
FROM: Stan Strebel, Dgputy City Manager
SUBJECT: Municipal Code Amendments on Gross Misdemeanors
1. REFERENCE(S):
I . Draft Ordinance
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
8/8: 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,
further, 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
clays.
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 timit 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 "I year"
regarding incarceration penalties.
• Section 1 — PMC 1.01.130—General. Provisions
• Section 2 --PMC 5.27.270—Adult Entertainment Business Licenses
• Section 3 —PT\4C 5.45.200 —For faire 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:
8(b)
■ 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 current fine
schedule. Misdemeanors cannot carry fines exceeding $1,000 nor incarceration
terms exceeding 90 days, or both.
■ Section 10— PMC 9.85.040 —Graffiti Nuisance
o Current— I"offense not more than $250
2"d offense not more than $500
Subsequent offenses, not more than $1,000 or incarceration
not more than 60 days, or both
o 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 1.111.130 "Violations - Penalty"; 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 determinate 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 ene (1) dear three
hundred and sixty-four 3641 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
ene{ }ye three hundred and sixty-four (364LLqys, 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 (1) yeas 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 punished by a fine not to exceed $5,000 or by imprisonment for a period not to
exceed one ye three hundred and sixty-four (364) days, or by both such fine and imprisonment.
(Ord. 2841 Sec. 1, 1991.)
Ordinance Redefining the Maximurn
lncarcera6on 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, ,vithout first obtaining a license or permit and paying a fec 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 ene deaf 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 - - PENALTY. 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 ene dear three hundred and sixty-four
(364) days, or by a fine in an amount fixed by the court, of not 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 he 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 hive Thousand Dollars ($5,000.00) or imprisonment for not more than ene-feaF 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 V10LATTONS.
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 tine of not more than $500 dollars and shall be guilty of a code infraction,
Each such person is guilty 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 Misdememors-3
inspection is issued, shall, in addition to the penalties provided in subsection (A) above, be guilty
of a gross misdemeanor and ,
.b pftfa4., aff ns 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 satiety 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 find shall W un -(100)
d*Aw-., $100 or mefe .h.,., tili2ee .btin,feA MDA ,-,-J�aFr_.�? E� E4r i ���t ::: - w eXeee,4;--
«� ..u
nifiety (9 s of be+h. 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 Imprisornnent. Any person violating this Ordinance shall be guilty of a
greas misdemeanor and punished by a fine of$250 dellar-s for the first offense: $500 dellms for
the second offense; and $1,000 della� for each subsequent offense, or by imprisonment in the
city jail for a term not to exceed y-, 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 Maximurri
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. 3370
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
Ordinance Redefining the Maximum
Incarceration for Gross Misdemeanors- 5
AGENDA REPORT
TO: City Council August 4, 2011
FROM: Gary Crutchfi Manager Workshop Mtg.: 818111
Regular Mtg.: 8115111
SUBJECT: Sewer Serb ice to Burbank Area
1. 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:
8/8: 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 armually 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 moods and Boise Cascade in that general vicinity).
Thus, competition is likely to occur over time, regardless.
8(c)
■ 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 man), 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).
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AGENDA REPORT
TO: City Counci ' June 9, 2011
FROM- Gary Crutchfi Manager Workshop Mtg.: 6/13/11
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
3. Memorandum from CH2MHil1 to Ahmad Qayoumi dated 11/14/10
4. Memorandum from City Manager to City Council dated 417111
5, Memorandum from City Manager to City Council dated 515111
& Letter from Pasco Chamber of Cc minerce dated 6/7111
II. ACTION REQUESTED OF COUNCIL 1 STAFF RECOMMENDATIONS:
6113: Discussion
III. 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 SRI 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 vase 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 corridoi)? Certainly,
competing industrial sites are not desirable for Pasco. However, if the Port
can build its own plant, competing sites may exist anyway (though sewr:r cost
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 Part would create a "tax base sharing" agreement whereby a fixed
percentage cif new tax generated by sewer-induced investments wouid be
shared with Pasco agencies (city, county, schools, etc.). The next best
mechanism 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) In addition to the 5/5/11 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 land competition;
• IIigher compensation for Pasco and payment in forin of
acceptable water rights.
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• Walla Walla Regional Airport
WALLA WA L L A . Walla Walla, Washington 99362-2269
Phone; (509) 525-3100 FAX: (509) 525-3101 www.portwallawalia.com • www.waRawallaairport.com
PASCO CITY HALL
July 2, 2010 PECEIVE'D
JUL 0 m 2010
Gary Crutchfield
City Manager "I i.Y OFFER'S
OFFICE
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 tic-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 for your
consideration.
k ely,
1 14_6 g'
M. Kuntz tive Director
cc: Port Commissioners
Ronald W. Dunning, Commissioner
Michael Fredrickson, Commissioner lames M. Kuntz, Executive Director
Paul H. Schneidmiller, Commissioner
TABLE 5-3
ALTERNATIVE A
CITY OF PASCO SERVICE
SYSTEM COMPONENT SIZE/CAPACITY ESTIMATED SYSTEM
COST COST
Headworks
Screening Structure $80,000
Mechanical Screen 12-inch/inclined 85,000
1-12S Control Tank and Feed 45,000
System
Headworks Accessories 20,000
$230,00
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
$198,000
Forcemain 6-inch Pressure Main 6,500 feet $260,000
Snake River Crossing 480,000
Gravity Transition to Pasco Sewer 45,000
$786000
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%) $108,20
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 X2.015.200
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,
611 112 01 0
S3D0CSIWW PORTWJ385-221 BURBANK WASTEWATEMTABLE 5-3 ALT A REV,xlsx
BURBANK BUSINESS PARK
FLOWS AND LOADS
Total Flow Total BOD Total SS
(gpd) (lb/day) (Ib/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 Flaw(gpm) 76
PHASE 2 Average Daily Flow (gpd)_ _ 78,400 83.2 w 83.2
Maximum Monthly Flow(gpd) 117,600
Maximum Daily Flow (gpd) 132,300
Peak Hour Flow m 196
TOTAL PHASE 1 + 2 Average Daily Flaw d 108,600 165 165
Maximum Monthly Flow(gpd) 162,900
Maximum Daily Flow (gpd} 183,300
Peak Hour Flow m 272
8:V[=SMW PORnW365421 BURBANK WASTEWATCRT-OWS AND LOADSidu
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PORT OF WALLA WALLA FIGURE
r,—))a n d e rs o n BURSANK BUSINESS PARK
assocfetes,m. 5-3
CONNECT TO PASCO ��
MEMORANDUM CH211!'1HILL
Port of Walla Walla Sewer Connection Update
ro: Ahmad Qayoumi,P.B. - Director of Public Works,City of Pasco
COPIES: Wally Hickerson,P.E.
FROM Thomas r. Helgeson, P.E.
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 connection of the Port of Walla Walla(POW W).'i'hat memorandum,
entitled "Southeast'Prunk 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
(AADF) and 162,900 gpd MMDF.
'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 connected.
'rhe 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 WW'1'P 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 mgd, or roughly 50% of
design flow.
'The additional flow proposed by the Port represents approximately 3.75% of the WWT11's
design capacity of 8.0 mgd.l1Ze SE Pasco Trunk was designed for a capacity of 5,000 to 5,200
gpm and the assumed peak flows proposed by the Port could represent as much as 10% of
this capacity (based on a 2.4:1 ratio of peak flow to MMDF), Without knowing the proposed
pumping facility characteristics, however, actual flows will likely differ from this value.
1 CA12010111 d_POWW_CONNECTION_UPDATE,DO CX 1
PORT OF WALLA WAL1 A SF,WF.R CONNECT ION UPDATE
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.
E=ffect 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,30-40 rng/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
• BOD exceeding 300 mg/L
• Temperature greater than 40°C
• Other specific exclusions
POWW's revised proposal states that"lw]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 BOD
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 POWs' 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 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 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 0.56 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, so it is not possible to determine whether additional
actions,charges, or pretreatment may be required. A disclosure of anticipated discharges
TCA12O101 ll4 POWWJ CDNNLCTlOr4 UPDATF DOM 2
PORT OF WALLA WALLA SEWER CCNNFCTION UPDATE
and connecting entities should be provided before a final determination is made im
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 rion-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 SE Pasco Trunk are considered.
These costs ($28,000,000 and $3,100,000 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 Constn{ction Cosf 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 534.95 plus $1.29/100 cubic feet over 1000.There is no surcharge in the code
for commercial accounts outside the City (unlike residential and Dote]/Motel).
I'CAi2P101114_PL)WW CONNECTION_UPOATF.DOCX
PORT OF WALLA WALI A SEWER CONNEC I ION UPDATE
EXHIBIT 2
Proposed Connection and Use Charges
Port of Walla Walla
Connection Charge:
Capital Cost,WWTP capacity""'y $45.33a,000
%of capacity impaired by Port 3.75%
Treatment capacity cost share $1,700,000
Capital Cost, SE Trunk capacity $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 O&M cost,treatment(4) $1,497,976
Cost factor for treatment, annual
Current O&M cost,conveyance(41 $573,457
Cost factor for Conveyance, annual 15) $57,646
Current O&M cost, administration(4) $1.511,350
Cost factor for administration,annual(5) $4,800
Total Use Cost f=actors,annual $118,616
{'I Treatment Capital cost based on most recent upgrade to facility,which enables
this connection
t21 Conveyance Capital Cost based on cost of construction at$I0linch
diametertfoot
19)Capital cost adjusted for increase in construction costs (ENR Index 1995
5471, August 2010=8858)
I41 O&M costs based on current year budget amounts
I'F Use charge cost factors based on Capacity percentages above for treatment
and collection,administrative based on estimated 48 hours per year at a
burdened labor cost of$100 1hour
The values shown in Exhibit I 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.
TCN201 D1114_PnW W_CONNF CTION„UPDATF.DOCX 4
MEMORANDUM
April 7, 2011
TO: City Council
FROM: Gary Crutchl I ity Manager
RF: 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. I loffmann) 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, 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 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 Per, 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 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:
o Plant: reservation of 300,0009pd epresents 3.75% of existing total capacity of the
sewer plant; it represents about wn/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,OOOgpd at the old plant should not be a problem over time.
o 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 costly).
o 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 tijne 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$750,0001ea. 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 CPT, 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
ti me.
• 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 52,000 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 N1cNary Wildlife Refuge (see Exhibit C). 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 cornrnercial development interest in the vicinity of the new
SR12 interchange at I lumorist 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.
GCltl-/.
Attachments
EXHIBIT A
Possible Property Tax Effects
(re; Burbank Sewer Service)
Pasco Franklin PSD Port of Total
County I Pasco
Gas Station/Mini-Mart
(S.5m) 985 820 3,320 170 5,295
Retail Strip Center
I Ok sf(S 1 ,0m) 1,970 1,640 6,640 340 10,590
Warehouse
50k sf($3.5m) 6,895 1 5,'140 23,240 1,190 37,065
100k sf($6.0m) 11;820 1 9,840 39,840 2,040 63,540
Proeessing Plant
100k sf($8,Om) 15,760 13,120 53,120 2,720 84,720
Equipment ($1 0.0m) 19,700 16,400 66,400 3,400 105,900
$29m 57,130 47,560 192,560 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. Part 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
5% annually) 1/12 to date of block purchase]; payment may he made in equal annual
payments over three years.
O&M:
PWW install, operate and maintain all collection lines,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.
W 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 cominercial/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 system.
4 Each monthly bill shall include a "PII.T (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:
G City has unrestricted access to inspect the conveyance system owned and operated by the
Port.
0 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.
City to have unrestricted access to inspect the pump station.
o 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.
a PWW to complete design of the system that will be reviewed and subject to approval by
the City.
e PWW is responsible for obtaining any necessary right-of-way, easements and permits to
complete construction.
o Termination: (?)
EXHIBIT C
",iri-panklIgarbank Heights
'oiair�Uhated Water System Plan
CIO
PINO
SR 124" _ �1'� � _ IC�
�� xzaorz
r _ .T
Fs y �
�s lurnbia On BAA 't
'•4 �, 1 1107 i Ma4ry NLu .1
WijdNto Rafnt N G N 61-r9 i
�- Halt"ri -•�� _ tr (E;d,.ittiip;a ;---� I Ri a
C l � `71
ume'ei� HUMOR16
Y � enaieco'u
Burbank .pie` i huff. �l
Irrigation Di
H 04n Ray I p
En
ding lub z
LEGEND
Class A
(2 to 25 Connections)
,q Critical Water Supply //Z f , x/'^ 4-44
Service Boundary
Port of Walla Walla a `�//�
Proposed Retail t�i7 C10
Service Area CsG �'�� i
Public Water District
® � Serving More Than Port oir\W lla Walla j +j
25 Connections
Burbank Rural Activity Center Proposed Who ale Service' Arwa
&Port of Walla Walla Proposed
Wholesale Service Area V1rP 3
I Wildlife Refuge
�—--' Disclaimer
The data contained in W aila 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 inabillty W use Walla Walla County's GIS data.
MEMORANDUM
May 5, 2011
TO: City Council
FROM: Gary Crutchlie M alter
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 $1 0,000/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), lithe 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, 1) outside the
current and foreseeable UG,A; 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/Port 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 fort'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/tl
attachments
310 A Street
- Po-�R If Walla Walla Regional Airport
Z"66WALLA Walla Walla, Washington 99362-2269
Phone: (509) 525-3100 FAX: (509) 525-3101 • www.portwallawalia.com • www.waltawallaairport.com
PASCO CITE' HALL
PECEIVED
May 4, 2011
MY 0 5 2011
Gary Crutchfield GI fY OFRCEER 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,�/�/J
r /J ! "
M. Kuntz
tive Director
Ronald W Dunning, Commissioner
Michael Fredrickson,Commissioner lames M. Kuntz, Executive Director
Paul H, Schneidmiller.Commissioner
Uses Allowed In Burbank's Industrial Business Park Zone
J INDUSTR1ALl ---_�
BUSINESS PARK `
+ 7
1
Uie PernAtted(K Coaditignal Use t
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 Establishments P. with conditions
Food Stores P, with conditions
General Merchandise Stores P, with conditions
Heavy Equipment Sales and Rental P
Home 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
Nero Durable Goods P
Commercial Greenhouseh P
Accessory Use (Retail/Wholesale Land Uses) P, with conditions
Fire Station P
Animal Hospital P
Automotive Repair and Services P
Automotive Parking P
Business Services P
Catering Establishments P
Clinic P
Day Cate Center P
Finance, Insurance, Real Estate P
Uses Allowed ht Burbank:c Industrial Business Park Zone
Page 1 of 2
Hospitals P
Laboratories. Research and Testing P
Offices P
Orphanage/Charitable Institutions P
Personal Services P
Rcpair Shops and related services P
Utility Facilities C
Warehousing and Storage P
Accessory Use(Government/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 Furniture P
Printing and Publishing P
Rubber and Miscellaneous Plastics P
Storage/Packing Agricultural Produce P
Textile Mill Products P
Winery Type I P, with conditions
Winery Type 11 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 Tenninals P
Wireless Communication Facility P, with conditions
Wireless Communication Facility, Attached P, with conditions
Accessory Use ( Regional Land Uses) P, with conditions
Uses Allowed In Burbank's Industrial Business Park-Zon e
Page 2 o/'2
a
r
VASCO
June 07, 2013
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 wln-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) max/yr
Capacity Purchase/Timing 1" Block within I year 1" Block within 1 year
2id Block within 15 years
Std 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) r
8/3/11
System Plan
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LEGEND
Class A
(2 to 25 Connectiontt) ✓= !r `
r
Critical Water Supply¢
Service Boundary °!y
Port of Walla Walla C,
Proposed Retail
Service Area C,
v PurlinMort District U. Fo0rt 0 a wawa
Serving More Than an 1 i
25 Connections
Burbank Rural Activity Center 3.reposed Whol Tale Service,ice Axiwa
&Port of Walla Walla Proposed +r° — �.
Wholesale Service Area
Wildlife Refuge 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 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 to persons or property arising from the use or inability to use Walla Walla County's GIS data.
RESOLUTION NO.
A RESOLUTION authorizing development of an lnterlocal 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 fort of
Walla Walla to the Pasco plant; and,
WHEREAS, a committee of City Councilmembcrs 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 BY 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 $400,000/ea; +CP1/5% max/yr
(100k gpd x 3)_ -
Capacity Purchase/'Timing I" Block within 1 year
2"d Block within 15 years
3rd Block may be cancelled by city if not purchased within S0 ears
Payment Terms 3 years each block
(one-third/year from I" year of purchase)
Sewer Use Rate 100%applicable city rate
PILT 100%of monthly sewer charge, not less than $2,000/month; + CPl
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 M
Service Area Coincide with Port's "wholesale" service area see map attached)
Section 2. That the City Manager is hereby authorized and directed to develop a formal
interlocal agreement with the Port of Walla Walla, consistent with the foregoing core elements, to
include all appropriate provisions in such a long-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 . 201 1
Matt Watkins, Mayor
ATTEST: APPROVED AS TO FORM:
Debbie L. Clark, City Clerk Leland B. Kerr, City Attorney
SurrbanklBurbank Heights
Al
Coovdinated Water System Plan
AW
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SR 1.24 �'� _ _._ iG.�-�
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LEGEND
Class A
(2 to 25 Connectiont!
Critical Water Supply
Service Boundary 12�� /
Port of Walla Walla
7
iac
Proposed Retail �C , • r
Service Area o��� - �. I
Public Water District Port ot�, la Walla
Serving More Than �
25 Connections �(
Burbank Rural Activity Center
Proposed WhoY+�ale SVX70ce Ax oa
&Port of Walla Walla Proposed
Wholesale Service Area
� Yligure 3
Wildlife Refuge
Disclaimer
The data contained in Walla Waila Countys 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 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.