HomeMy WebLinkAbout2011.12.12 Council Workshop Packet AGENDA
PASCO CITY COUNCIL
Workshop Meeting 7:00 p.m. December 12, 2011
1. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance.
3. VERBAL REPORTS FROM COUNCILMEMBERS:
4. ITEMS FOR DISCUSSION:
(a) Columbia Water Supply-Raw Water Intake Irrigation Pipeline:
1. Agenda Report from Ahmad Qayoumi,Public Works Director dated December 8,2011.
2. Professional Services Agreement with Scope of Work.
(b) Process Water Treatment System Optimization:
1. Agenda Report from Gary Crutchfield,City Manager dated December 8, 2011.
2. Professional Services Agreement.
(e) Tri-Cities Prep Street Agreements:
1. Agenda Report from Gary Crutchfield,City Manager dated December 8,2011-
2. Vicinity Map.
3. Proposed Joint Development Agreement.
4. Proposed Latecomer Satisfaction Agreement_
(d) Code Amendment: Rabbits and Hens in Residential Zones:
1. Agenda Report from Jeffrey Adams,Associate Planner dated December 6, 2011.
2. Proposed Ordinance.
3. Staff memo to the Planning Commission dated 11/17/11.
4. Planning Commission Minutes dated 10/20/11 and 11/17/11.
5. Summary Table.
(e) 2011 Budget Supplement:
1. Agenda Report from Dunyele Mason, Finance Manager dated December 8, 2011.
2. Proposed Ordinance Amending the 2011 Operating Budget.
3. Proposed Ordinance Amending the 2011 Capital Improvements Projects Budget,
4. Proposed Resolution Authorizing the Interfund Loans.
5. Memo from Finance Manager to City Manager.
6. Exhibit 1 -2011 Budget Supplement Worksheet.
(f) Golf Course Management Agreement:
1. Agenda Report from Rick Tenvay, Administrative & Community Services Director dated
December 6,2011.
2. Draft Management Agreement,
3. Examples of Incentives.
(g) Downtown Pasco Development Authority Agreements:
1. Agenda Report from Rick Terway, Administrative & Community Services Director dated
December 1, 2011.
2. Office Space Lease Agreement.
3_ Commercial Kitchen Business Incubator Lease Agreement.
4. Farmers Market Lease Agreement.
5. Funding Agreement,
(h) Franklin County Comprehensive Emergency Management Plan:
1. Agenda Report from Bob Gear, Fire Chief dated December 8, 2011.
2. Resolution.
3. Franklin County Comprehensive Emergency Management Plan (document is too large to
be included with agenda report and may be accessed on the Franklin County Emergency
Management website at www.franklinem.ori*_).
Workshop Meeting 2 December 12, 2011
(i) 2011 Franklin County Hazard Mitigation Plan Update:
1. Agenda Report from Bob Gear,Fire Chief dated December 5, 2011.
2. Synopsis of Plan Revisions,
3. Resolution.
4. 2011 Franklin County Hazard Mitigation Plan (document is too large to be included with
agenda report and may be accessed on the Franklin County Emergency Management
website at www.franklinem.on,,).
(j) Correspondence from Tri-Cities Regional Public Facilities District:
1. Agenda Report from Stan Strebel,Deputy City Manager dated December 8,2011.
2. October 18, 2011 letter from TCRPFD.
5. OTHER ITEMS FOR DISCUSSION:
(a)
(b)
(c)
6. EXECUTIVE SESSION:
(a)
(b)
(c)
7. ADJOURNMENT
REMINDERS:
1. 12:00 p.m., Monday, December 12, Pasco Red Lion — Pasco Chamber of Commerce Membership
Luncheon. (Holiday Luncheon featuring the 10"'Avemie Singers from Pasco High School)
2. 10:00 a.m., Tuesday, December 13, Senior Center— Senior Citizens Advisory Committee Meeting.
(COUNCILMEMBER TOM LARSEN,Rep.; BOB HOFFMANN, Alt.).
3. 5:30 p.m., Wednesday, December 14, Clover Island Inn—Benton, Franklin& Walla Walla Counties
Good Roads & Transportation Association Meeting. (COUNCILMEMBER BOB HOFFMANN,
Rep.; REBECCA FRANCIK, Alt.).
4. 11:30 a.m., Friday, December 16, Sandberg Event Center—Benton-Franklin Council of Governments
Board Meeting. (COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK, Alt.)
AGENDA REPORT NO. 13
FOR: City Council December 8, 2.01 1
TO. Gary Crutchfie r L ger
FROM: Ahmad QayourAi, Public Works Director '` lorkshop Mtg.: 12/12/2011
Regular Mtg.: 12/19/2011
SUBJECT: Columbia Water Supply - Raw Water Intake Irrigation Pipeline
I. REFERENCE(S):
1. Professional Services Agreement with Scope of Work
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
12112: Discussion
12119: MOTION: I move to approve the Professional Services Agreement with
Murray, Smith and Associates, Inc. authorizing professional
services with respect to the Columbia Water Supply—Raw Water
Intake Irrigation Pipeline, not to exceed $609,814.00 and further,
authorize the Mayor to sign the agreement.
III. FISCAL IMPACT:
None; paid by Ecology grant
IV. HISTORY AND FACTS BRIEF:
A) The City currently draws raw water to supply its new West Pasco Water Treatment
Plant(WPWTP) from an existing intake located immediately west of the I-182 bridge
on the north side of the Columbia River. The existing intake is an older City
irrigation system facility that has been modified to enable pumping through the new
membrane pressure filters at the WPWTP. Both irrigation and potable water is
withdrawn from here. The existing intake has a maximum hydraulic capacity of 9
MGD (approximately 3 MGD for irrigation and 6 MGD for WPWTP). The City
intends to construct the new intake structure by the end of 2015, including a pumping
facility and raw water pipeline designed and constructed to match the ultimate
capacity of the WPWTP (18 MGD).
The City also intends to construct a new irrigation system supply pipe and booster
pump station. This phase covers the design and construction of improvements to the
existing City of Pasco municipal irrigation system to deliver at least 1,000 Acre-feet
of water from the USBR permit. The project includes approximately 12,000 feet of
16-inch pipeline from the existing I-182 intake site to connect with the existing
irrigation system in Sandifur Parkway at Road 84, and a booster pump station along
the route of the 16-inch pipeline, near the southerly convergence of Harris Road and
I-]82, furtherance of the City's Irrigation Master Plan,
B) In April 2011, staff sent a formal Request for Proposals (RFP) to five consulting
firms and received two responses in May. City interviewed the two consulting firms
which met the criteria as outlined in the RFP. After extensive discussions and failed
negotiations with one of the consultants, the consultant selection team picked
Murray, Smith and Associates, Inc., and successfully negotiated the scope and budget
for the project.
V. DISCUSSION:
A) The selected consultant (Murray, Smith & Associates, Inc.) has over 30
years experience in Civil Engineering with expertise in public utilities such as water
and sanitary sewers. Over the years, MSA has built one of the strongest municipal
engineering groups in the Pacific Northwest. MSA demonstrated performance and
4(a)
excellent reputation has been key to the firm's continued growth and success. They
have presented a well-planned scoping that meets the City's guidelines and budget to
accomplish the project goals. It is a very complex project that involves reviews and
coordination with many agencies such as the Army Corps, Fish & Wild Life,
Department of Ecology and many more. MSA has designed and managed a number
of similar complex water and sewer projects with excellent results. The firm only
works with local agency projects and has a very good reputation with public agencies
in the Northwest.
Bj Work involves any tasks necessary to complete permitting of new and old facilities
including final drawings and specifications suitable for the City to solicit bids for
construction. The fee for this work is proposed at the lump sum of$609,814.00 and
is expected to be completed by October 1, 2013. The cost is fully offset by the recent
Ecology grant for this project.
ECOLOGY CONTRACT #C1200160
Attachment A
SCOPE OF WORK:
City of Pasco
Columbia River Basin Water Supply Development
City of Pasco Municipal Potable and Irrigation Water Supply Improvements
PROJECT DESCRIPTION:
The City of Pasco currently draws water through their 1-182 Columbia River intake for use in both
their raw water supply to the West Pasco Water Treatment Plant(WPWTP) and municipal irrigation
systems. According to the preliminary engineering work for the WPWTP, total withdrawals
through the I-182 intake are limited to approximately 9.0 MGD (6,250 gpm). In its current phase,
the WPWTP is designed to produce 6.0 MGD for potable water use, leaving 3.0 MGD for use in the
municipal irrigation system.
Per discussions with the Department of Ecology, the City will use the proposed 5,000 Acre-Foot of
water from the USBR permit for the proposed water supply improvements, with 1,000 Acre-feet
allocated for irrigation and 4,000 Acre-feet allocated for the domestic potable water system.
The Project will be completed in multiple phases, as follows:
PHASE 1 --NEW POTABLE WATER SYSTEM INTAKE AND PUMP STATION PERMITTING
AND DESIGN: This phase covers the permitting and design of the new intake structure and pump
station to deliver raw water to the West Pasco Water Treatment Plant (WPWTP). The new intake
and pump station facility will be located adjacent to the existing intake, which will be converted to
municipal irrigation system service after the new potable water system intake is constructed.
PHASE 2—NEW IRRIGATION SYSTEM SUPPLY PIPE AND BOOSTER PUMP STATION:
This phase covers the design and construction of improvements to the existing City of Pasco
municipal irrigation system to deliver 1,000 Acre-feet of water from the USBR permit, The project
includes approximately 12,000 feet of 16-inch pipeline from the existing I-182 intake site to
connection with the existing irrigation system in Sandifur Parkway at Road 84, and a booster pump
station along the route of the 16-inch pipeline, near the southerly convergence of Harris Road and I-
182, in compliance with the City's Irrigation Master Plan.
FUTURE PHASE 3 —NEW POTABLE WATER SYSTEM INTAKE AND PUMP STATION
CONSTRUCTION: This phase covers the construction of the new intake structure and pump
station to deliver raw water to the West Pasco Water Treatment Plant(WPWTP).
Page 6 of 16
ECOLOGY CONTRACT #C1200160
PROJECT BUDGET; The Project Budget is funded under a Grant from the Department of
Ecology,Office of the Columbia River, and other funding sources matched by the RECIPIENT.
PROJECT LOCATION: T9N, R.29E.
WORK PROGRAM: The RECIPIENT shall comply with the State Environmental Policy Act
(SEPA) and shall acquire all federal, state, and/or local permits necessary for this project. Copies of
all permits, plans, specifications, and documentation for compliance with necessary permits will be
submitted to DEPARTMENT prior to commencement of construction.
PROJECT TASKS
PHASE 1 — NEW POTABLE WATER SYSTEM INTAKE AND PUMP STATION
PERMITTING AND DESIGN
RECIPIENT has conducted a competitive process and selected a Consultant to complete Phase 1 of
the project. Consultant selection was in accordance with Adminis w g Reg-uirem=s for
e i ients_Qf Ecoloa Grapts and mans (The Yellow Book).
TASK 1: PROJECT MANAGEMENT
1.1; Develop and manage work plan; periodic project meetings with City staff; periodic
briefings to City Council; subconsultant management; monthly progress reporting to
City coordination with Ecology(by City).
Deliverables: Work plan; project status reports; monthly conference call/meetings or email
updates with Ecology(by City).
Deliverables: Work plan; project status reports.
Timeline: December 1, 2011 through September 30, 2013
Budget: $24,640
TASK 2: PERMITTING SERVICES AND INTERAGENCY COORDINATION
2.1 Preliminary regulatory review and assessments; preliminary agency consultations and
determination of requirements; site-specific environmental assessments
documentation and draft reporting; City and Agency reviews; final reporting; permit
applications and processing; interagency coordination.
Page 7 of 16
ECOLOGY CONTRACT #01200160
Deliverables: Permits and documentation for compliance.
Timeline: December 1,2011 through March 31, 2013
Budget: $62,554
TASK 3; FIELD INVESTIGATIONS, ARCHAEOLOGICAL INVESTIGATIONS AND
TECHNICAL STUDIES
3.1; Background data review; review existing project reports and technical memoranda;
hydraulic analysis; geotechnical investigations; survey and mapping; utility
investigations; archaeological and cultural investigations.
Deliverables: Archaeological and cultural reports.
Timeline: December 1, 2011 through June 30, 2012
Budget: $49,056
TASK 4: DESIGN SERVICES
4.1: Preliminary design (30%); design submittals (60% and 90%); final construction
documents("as-bid" set); construction pen-nits.
Deliverables: Two copies each: Final Design documents including all supporting
documentation signed and sealed by a professional engineer licensed in the
State of Washington.
Construction Contract including pricing information, exceptions to the
construction agreement and a construction schedule.
Timeline: July 1, 2012 through September 30, 2013
Budget: $273,585
TASK 5: PROPERTY ACQUISITION
5.1 Acquire permanent and construction easements for intake and pump station.
Page 8 of 16
ECOLOGY CONTRACT#01200160
Deliverables: Executed easements.
Timeline: December 1, 2011 through June 30, 2012
Budget: $140,165
PHASE 2 — NEW IRRIGATION SYSTEM SUPPLY PIPE AND BOOSTER PUMP
STATION
RECIPIENT has conducted a competitive process and selected a Consultant to complete permitting,
design and construction management assistance for Phase 2 of the project. Consultant selection was
in accordance with Administrative Requirements far Reci f e is of Ecology Grants and Ira (The
Yellow Book).
TASK 1: PROJECT MANAGEMENT
1.1: Periodic project meetings with City staff; periodic briefings to City Council; sub-
consultant management; monthly progress reporting to City; coordination with
Ecology (by City).
Deliverables: Project status reports; monthly conference call/meetings or email updates
with Ecology(by City).
Timeline: December 1, 2011 through June 30, 2013
Budget: $14,166
TASK 2: PERMITTING SERVICES AND INTERAGENCY COORDINATION
2.1 Preliminary regulatory review and assessments; preliminary agency consultations and
determination of requirements; site-specific environmental assessments
documentation and draft reporting; City and Agency reviews; final reporting; permit
applications and processing; interagency coordination.
Deliverables: Permits and documentation for compliance.
Timeline: December 1, 2011 through March 31, 2012
Budget; $18,826
Page 9 of 16
ECOLOGY CONTRACT #C1200160
TASK 3: FIELD INVESTIGATIONS, ARCHAEOLOGICAL INVESTIGATIONS AND
TECHNICAL STUDIES
3,1: Background data review; review existing project reports and technical memoranda;
hydraulic analysis; survey and mapping; utility investigations; archaeological and
cultural investigations.
Deliverables: Archaeological and cultural reports.
Timeline: December 1, 2011 through March 31, 2012
Budget: 528,987
TASK 4: DESIGN SERVICES
4.1: Preliminary design(30%); design submittals (60% and 90%); final construction
documents("as-bid" set); construction permits.
Deliverables: Two copies each: Final Design documents including all supporting
documentation signed and sealed by a professional engineer licensed in the
State of Washington.
Construction Contract including pricing information, exceptions to the
construction agreement and a construction schedule.
Timeline: December 1, 2011 through May 30, 2012
Budget: $86,803
TASK 5: BIDDING AND CONSTRUCTION PHASE ENGINEERING SERVICES
5.1: Construction management; bidding and award phase; construction contract
administration; shop drawing and submittal reviews; on-site engineering during
construction; testing, start-up, training and project close-out; record drawings.
Defiverables: Construction status reports; monthly conference call/meetings or email
updates with Ecolopy(by City).
Timeline: June 1, 2012 through March 31, 2013
Budget: $51,218 plus local match
Page 10 of 16
ECOLOGY CONTRACT #C1200160
TASK 6: BIDDING AND CONSTRUCTION
6.1 RECIPIENT will conduct Construction bid process and select a contractor(or
contractors) to complete construction of Phase 2 of the project. Contractor selection
will be in accordance with i trative l�:quirements for Recipients of lo
+Grants and Leans(The Yellow Book), The RECIPIENT will, at a minimum,
complete a competitive process to allow for multiple proposals.
6.2 Initiate construction contract.
6.3 Quality control, field inspection, and progress reporting. RECIPIENT and/or its
agents or assigns will construct the project and will maintain monthly reports
documenting progress, field inspections, and problems encountered, to support end-
of-project invoicing. Brief monthly status updates will he emailed to the Project
Manager at ajos461 Qec .wa.- v. Payments following construction will be based on
RECIPIENT reports on percent complete and will be verified by DEPARTMENT
technical staff prior to payment.
Deliverables: Construction Contract including pricing information, exceptions to the
construction agreement and a construction schedule. Monthly reports will be
produced and sent to DEPARTMENT.
Timeline: June 1, 2012 through March 31, 2013
Budget; 51,902,058
Page I1 of 16
ECOLOGY CONTRACT #C1200160
TASK 7: PROJECT CLOSEOUT
7.1: Project Closeout will include demonstration of full operation of the facilities as
designed. Operation will function at design criteria levels as verified in the field from
Construction Document level specifications and design drawings.
Deliverables: Two copies of a Final Project report, summarizing or including monthly
reports, signed and sealed by a professional engineer licensed in the State of
Washington will be submitted to DEPARTMENT. This report will include
as-built drawings, final specifications markups, and lien releases from
contractor(s) and major vendors. It will also include a declaration, signed and
stamped by the engineer,that the project was, to the best of hist'her
knowledge, constructed and completed in accordance with the construction
plans and specifications and generally accepted engineering/construction
practice.
Timeline: April 1, 2013 through June 30, 2013
Budget: $0 (local match)
TASK 8: PROPERTY ACQUISITION
8.1 Acquire permanent and construction easements for booster pump station.
Deliverables: Executed easements.
Timeline: December 1, 2011 through March 31,2102
Budget: $25,000
FUTURE PHASE 3 —NEW POTABLE WATER SYSTEM INTAKE AND PUMP STATION
CONSTRUCTION
Future Phase 3 construction scope, budget, timeline and funding sources will be determined after
permitting and design phases for the new potable water system intake and pump station are
completed under Phase 1.
TASK 1: BIDDING AND CONSTRUCTION PHASE ENGINEERING SERVICES
1.1: Construction management; bidding and award phase; construction contract
administration; shop drawing and submittal reviews; on-site engineering during
construction; testing, start-up,training and project close-out; record drawings.
Page 12 of 16
ECOLOGY CONTRACT #C1200160
Deliverables: TBD
Timeline: TBD—approx. October 2013 through December 2014
Budget: TBD
TASK 2: BIDDING AND CONSTRUCTION
2.1 RECIPIENT will conduct Construction bid process and select a contractor (or
contractors)to complete construction of Phase 2 of the project. Contractor selection
will be in accordance with 6dmini8tra ive Requirements for Recipients of E4.t�lo
Grants and Loans(The Yellow Book). The RECIPIENT will, at a minimum,
complete a competitive process to allow for multiple proposals.
2.2 Initiate construction contract.
2.3 Quality control, field inspection, and progress reporting. RECIPIENT and/or its
agents or assigns will construct the project and will maintain monthly reports
documenting progress, field inspections, and problems encountered, to support end-
of-project invoicing. Brief monthly status updates will be emailed to the Project
Manager at"o 61&0ecv.wa. = v. Payments following construction will be based on
RECIPIENT reports on percent complete and will be verified by DEPARTMENT
technical staff prior to payment.
Deliverables: Construction Contract including pricing information, exceptions to the
construction agreement and a construction schedule. Monthly reports will be
produced and sent to DEPARTMENT.
Timeline: TBD —approx. October 2013 through December 2014
Budget: TBD
TASK 3: PROJECT CLOSEOUT
3.1: Project Closeout will include demonstration of full operation of the facilities as
designed. Operation will function at design criteria levels as verified in the field from
Construction Document level specifications and design drawings.
Deliverables: Two copies of a Final Project report, summarizing or including monthly
reports, signed and sealed by a professional engineer licensed in the State of
Washington will be submitted to DEPARTMENT. This report will include
Page 13 of 16
ECOLOGY CONTRACT #C1200160
as-built drawings, final specifications markups, and lien releases from
contractor(s) and major vendors, It will also include a declaration, signed and
stamped by the engineer,that the project was, to the best of his/her
knowledge, constructed and completed in accordance with the construction
plans and specifications and generally accepted engineering/construction
practice.
Timeline: TBD—approx. October 2013 through December 2014
Budget: TBD
Page 14 of 16
ECOLOGY CONTRACT #C1200160
PROJECT BUDGET BY TASK
TASK TOTAL ECOLOGY RECIPIENT
PROJECT GRANT SHARE'
COSTS SHARE
Phase 1 —New Potable Water System
Intake And Pump Station Permitting
And Design
Task 1 : Project Management 524,640 $24,640 $0
Task 2: Permitting Services And
Interagency Coordination $b2,554 $b2,554 $0
Task 3: Field Investigations,
Archaeological Investigations And
$49,056 $49,056 $0
Technical Studies
Task 4: Design Services $273,585 $273,585 $0
Task 5: Property Acquisition 1 $140,165 $140,165 $0
Subtotal—Phase 1 $550,000 $550,000 $0
Phase 2 —New Irrigation System Supply
Pipe And Booster Pump Station
Task 1: Project Management $14,166 $14,166 $0
Task 2: Permitting Services And
Interagency Coordination $18,826 $18,826 $0
Task 3: Field Investigations,
Archaeological Investigations And
Technical Studies $28,987 $28,987 $0
Task 4: Design Services $86,803 $86,803 $0
Task 5: Bidding And Construction
Phase Engineering Services $51,218 $51,218 TBD
Task 6: Bidding And Construction $1,902,058 $1,902,058 $0
Task 7: Project Closeout TBD $0 TBD
Task 8: Propertyy Acquisition $25,000 $25,000 $0
Subtotal — Phase 2 $2,127,058 TBD
TOTAL--PHASES 1 AND 2 TBD $2,677,058 1 TBD
Page 15 of 16
ECOLOGY CONTRACT #C1200160
Future Phase 3 - New Potable Water
System Intake And Pump Station
Construction
Task 1: Bidding And Construction
Phase Engineering Services TBD TBD TBD
Task 2: Bidding And Construction TBD TBD TBD
Task 3: Project Closeout TBD TBD TBD
TOTAL—FUTURE PHASE 3 TBD L TBD TBD
Page 16 of 16
COLUMBIA WATER SUPPLY PROJECT � DRAFT
CITY OF PASCO }
PROPOSED FEE ESTI167ATE
(.AHU}(CLl\�1►/C.t7IOt 1 NIAKU 6l[1',t t(t'D 1 Flti
1•tSA DS1r Ga tt I priscipel �tau�r
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r Hvun SJeNOka 111N 1 (311 1 7(6 t5 3.N56 s4e1 41((R.t
PHASE I-INITIAL.EVALUATION,PERMITTING AND LAND AC UISMON
a it .•r1cnC r.pn vtew 2 6 _ _ 2 Iu T-7 ,01 c 1.575 S 30 S 3.DI5
1t' k Dcv lan�Man mans 8 2 li S 1050 _ S__SQ
c. tanadre Pro 1 ASrelrn (SCAM 4 0 13 S 5 11.06
d R•iod"<floc ryr(L'm•rd2 _ t 10 11 .907 100 S lco 4"I
e u`eorR meal 6 1017 3 10 1"1
( I.trnlM Pr b and (11v1 M _ _ 7 S I,}4. 52i S 50 09
rejAlAssowgr 60 711 S - S 1 DO - S - S S - S 430 S 4.670
PermIMR(SbrvJCes aqd Iota ena Coor+tfnaM4p
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PM min=,L •(Vjoy_I 1 DII. I a u Rao. n! 1 J t S 1.496 360 S _5,159
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4 5 460 5 765 s 23 S :'4'
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7 c4 .J) I 6 8 60_ S 9 5 ) S - 5 1.676 f 400 i SS+
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114rubc Oro I to 14 d J 5 4.139 s 50 s 4,144
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S S 9.634
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1�Ii 7
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rrsry C1n1 0°/nt 4 S 10 20 60 S 100 S 36.11u S 9,V96 I S 7N 1 1 S $.648
IXu n Su r6ur ..G0'•,'. 14 1 20 699 5 FA 39Q S 59.1(0 7 S 3 1.40 S 22112 1 lima at 13
! 'p tj,(=Documenis 14 6 30 __ 1 !Ci 1;r4 S I s I S S 1409
�Q^•,I14eliQLt..P�iLt --- 16 4 4 2 3 ,79 1 1012 c d 74
red 4 4 71 796 486 70 42 11 J TIAj-?4 S I S J.!0 S t S S - S S 11 S 733M
PHASE 3-CONSTRUCTIONS SERVI
:sl 07 1.09P 1 3 I'MI 1400 1 MOM 1 S 4 1;ltj
hiy
at pw* Marr.y,swlEb A at4acbtur.Inc. 1.01k ft ,a W-la Supply P(6)41
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HARRIS ROAD IRRIGATION BOOSTER PUMP STATION AND PIPING
CITY OF PASCO
PROPOSED FEE ESTIMATE
tAbON CIASSIMAT10. /eTTMATTD"AS
TASK $color Tal7icar I up. Stmk,r
Pvloclya4 h7oc11a1 .ltsoe t' 1 4T.,ILT"k (Ltkd 7cW t.i1K Cayeares Taa!
llcun UDJ RAW CLCWA
Task I.A.Pr edMana at
a Nriodw Pr -iM:ftrt(SuM 1 1 24 1 24 1 _ f r 1 48 11 ISM 1 1 1 1 9 )50 S 7 956
b Pcrwdre Bricfrn,s(CaueGl) 6 6 Is _L7121 Is 100 S 2.152
a Subcona+l tart ASan mart 4 4 i i __ A f_ 13D0 S 50 S I'•50
d Month rac A_ and fnvomn. 6 6 14 f __1,%41 S 50 S ).014
Task 1•A 0 46 34 4 0 0 0 86 S 73 16 S S 3 S 166
Task 1.B•Permatmg Services and latera Coo r".tion
a Frelircue Poeul hom ud Auestmuz 2 2 8 2 14 3.71 S 688 S 25 S 422
b Pmlo Avme Consuluumsand(5mm+nanonofR rdremmt3 2 1 8 1a S 2 t11 f 263 Is 25 S 2,792
C. S jj SPCCAC EM1Vi(VgPtr441 Apc13"IcLs Dmwr4nuarn and Drsfl 4 8 8 2 22 S 29761 1 f 25 S 3,001
d ClbandA eeev8(eriews 2 2 8 12 S 1636 $ 788 S 25 S 2
e Fvta1 R+ rL 2 4 8 4 a 4 30 3.356 S I'm S 200 5 tW6
f Permit Apylitanons and Proccump 2 4 2 E S 902.S 263 f 100 1,265
tntrn Cooeitmon 4 4 4 12 S 1768 t 525 S 50 5 2,343
Td1.I15rYird 30 48 0 4 8 t0 1 ltd S 14in S 3490 5 3 4 1 ?6
Task 3.Field ln�wi atiaw.Ar<hitol 14 itian and 7'etbatiaal Studies
a BaA;ro+odDauRevww 2 2 10 T 1.052• _ S 5o I 1,102
h Resseu 6auunl P+gav7 Repcttsand TeehnrW Memoranda I 4 4 2 It S l 3$6 S 50 f 1,430
e.Hvd=1teAaatja 2 16 16 2 % S 4856 - 5 -50
d Son. and Mcpnrne 2 8 2 6 19 S 137D'S 12.600 S 150 S 14..420
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AGENDA REPORT No. 19
TO: City Counci December 8, 2011
FROM: Gary Crutchfie , ager Workshop Mtg.: 12/12/11
Latment Q stem Regular Mtg.: 12/19/11
C y p T: Process Water SUBJE S Optimization
I. REFERENCE(S):
1. Professional Services Agreement
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
12/12: Discussion
12/19: MOTION: I move to approve the Professional Services Agreement with CES
authorizing professional services with respect to the
Comprehensive Sewer Plan, not to exceed $318,600 and further,
authorize the Mayor to sign the agreement.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A) The city treats and re-uses the process water generated by the Pasco processing
center during vegetable processing by applying it to agricultural crops grown on
the city's farm circles. The agronomic capacity of the land dictates the maximum
process water volume that can be delivered from the processing center to the city
for treatment and reuse. Without additional land or other changes, the city cannot
accommodate a new processor, nor expansion of existing processors.
B) Staff employed the services of Cascade Earth Sciences (CES) to analyze the
existing process water treatment system to identify opportunities to optimize the
capacity of the system. Their effort identified several improvements the city can
make to the system to achieve greater capacity(see reference #1).
V. DISCUSSION:
A) Staff proposes to optimize the treatment capability of the existing farm circles in
order to maximize the utility of the existing system and to improve operation of
the system. Improvements to the current system proposed by CES will be
beneficial, as it would improve crop growth and farmer income while also
maximizing the production potential for the food processors, It is also more cost
effective because it will first leverage the existing system before incurring costs to
expand the land base (the last resort).
B) Staff and a representative from CES will explain the optimization plan in a
presentation at the workshop meeting.
C) The improvements will create additional capacity for additional loading or
additional reuse water.
D) On December 7, 2011 staff met with the food processors who agreed to proceed
with the design and improvements as proposed.
4(b)
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT, made and entered into between the City of Pasco, hereinafter
referred to as the "City", and Cascade Earth Sciences (CES) hereinafter referred to as the
"Consultant".
WHEREAS, the City desires to engage the professional services and assistance of a
consulting firm to provide Professional Design Services with respect to the Process Water
Treatment System Phase Optimization, and Consultant has demonstrated that it is highly
qualified to perform these services.
NOW, THEREFORE, in consideration of mutual benefits accruing, it is agreed by and
between the parties hereto as follows:
1. Scol2e of w rk. The scope of work shall include all services and material necessary to
accomplish the above mentioned objectives in accordance with Exhibit A.
2. Ownership and use of documents.
A. The parties acknowledge that this Agreement shall be governed by RCW Chapter
42.56 and any other State or Federal law relating to confidentiality; intellectual
properties, and public disclosure. The parties shall make a good faith effort to
comply with such laws, and to the fullest extent allowed by law, comply with the
provisions of this section.
j B. All research, tests, surveys, preliminary data and any and all other work product
prepared or gathered by the Consultant in preparation for the services rendered
shall not be considered public records, 1rovided, however, that:
(1) All final reports, presentations and testimony prepared by Consultant shall
become the property of the City upon their presentation to and acceptance
by the City and shall at that date become public records.
(2) The City shall have the right, upon reasonable request, to inspect, review
and, subject to the approval of Consultant,copy any work product.
(3) In the event that Consultant shall default on this Agreement, or in the
event that this Agreement shall be terminated prior to its completion as
herein provided,the work product of Consultant, along with a summary of
work done to date of default or termination, shall become the property of
the City and tender of the work product and summary shall be a
prerequisite to final payment under this Agreement. The summary of
work done shall be prepared at no additional cost, if the Agreement is
terminated through default by Consultant. If the Agreement is terminated
CES Professional Services Agreement - i
through convenience by the City, the City agrees to pay Consultant for the
preparation of the summary of work done.
(4) Consultant shall maintain all documents associated with work performed
under this Agreement for a minimum period of three (3) years after
completion of the work. This provision shall survive termination of this
Agreement.
(5) Consultant shall respond to requests by the City for records within five (5)
business days by either providing the records, or by identifying in writing
that additional time is necessary to provide the records with a description
of the reasons why additional time is needed. Records shall be provided to
the City within twenty (20) days of the date of the request. Provisions of
Section 5 in this Agreement shall specifically apply to any claim arising
out of Consultant's failure to properly maintain or timely produce records
as described herein and as otherwise required by law.
3, Payments. The Consultant shall be paid by the City for completed work for services
rendered under this Agreement as provided hereinafter. Such payment shall be full
compensation for work performed or services rendered and for all labor, materials,
supplies, equipment and incidentals necessary to complete the work.
A. Payment for work accomplished under the terms of this Agreement shall be on a
lump sum basis as set forth on the fee schedule found in Exhibit A, provided, in
no event shall the payment for all work performed pursuant to this Agreement
exceed the sum of 531$,600, without approval from the City.
B. All vouchers shall be submitted by the Consultant to the City for payment
pursuant to the terms of this Agreement. The City shall pay the appropriate
amount for each voucher to the Consultant. The Consultant may submit vouchers
to the City monthly during the progress of the work for payment of completed
phases of the project. Billings shall be reviewed in conjunction with the City's
warrant process.
C. The costs records and accounts pertaining to this Agreement are to be kept
available for inspection by representatives of the City for a period of three (3)
years after final payment. Copies shall be made available upon request.
4. Time of performance. The Consultant shall perform the work authorized by this
Agreement promptly and before June 15,2012.
5. Hold harmless a-greement. In performing the work under this Agreement, the
Consultant agrees to defend the City, their officers, agents, servants and employees
(hereinafter individually and collectively referred to as "Indemnitees"), from all suits,
claims, demands, actions or proceedings, and to the extent permissible by law, indemnify
and hold harmless the Indemnitees from:
CES Professional Services Agreement -2
A. All damages or liability of any character including in part costs, expenses and
attorney fees, based upon, any negligent act, error, or omission of Consultant or
any person or organization for whom the Consultant may be responsible, and
arising out of the performance of professional services under this Agreement; and
B. All liability, loss, damage, claims, demands, costs and expenses of whatsoever
nature, including in part, court costs and attorney fees, based upon, or alleged to
be based upon, any act, omission, or occurrence of the Consultant or any person
or organization for whom the Consultant may be responsible, arising out of, in
connection with, resulting from or caused by the performance or failure of
performance of any work or services under this Agreement, or from conditions
created by the Consultant performance or non-performance of said work or
service.
6. General and professional liability insurance. Consultant shall secure and maintain in
full force and effect during the performance of all work pursuant to this Agreement a
policy of comprehensive general liability insurance providing coverage of at least
$1,000,000 per occurrence and $2,000,000 aggregate for personal injury; $1,000,000 per
occurrence and $2,000,000 aggregate for property damage; errors and omissions
insurance in the amount of $1,000,000; and automobile insurance as required by law.
Each such insurance policy shall name the city as an additional insured, The Consultant
agrees to provide thirty (30) days written notice to the City if the policies are cancelled
for any reason. The City shall be named as a certificate holder on each insurance policy.
Ccrtificates of coverage shall be delivered to the City within fifteen (15) days of
execution of this Agreement.
7. Discrimination er2hibited, Consultant shall not discriminate against any employee or
applicant for employment because of race, color, religion, age, sex, national origin or
physical handicap.
8. Consultant is an indel2endent contractor. The parties intend that an independent
contractor relationship will be created by this Agreement. No agent, employee or
representative of the Consultant shall be deemed to be an agent, employee or
representative of the City for any purpose. Consultant shall be solely responsible for all
acts of its agents, employees, representatives and subcontractor during the performance
of this Agreement. Consultant shall make no claims for benefits for employment against
the City including, but not limited to, sick leave, medical insurance, coverage under the
City's State Department of Labor and Industries policy, vacation benefits, retirement, or
unemployment benefits. Consultant shall comply with all State and Federal laws
including, but not limited to, the requirements of RCW 50.04.0140 and RCW 51.08.195.
9. Ci T approval. Notwithstanding the Consultant's status as an independent contractor,
results of the work performed pursuant to this Agreement must meet the approval of the
City.
CES Professional Services Agreement- 3
10. Termination. This being an Agreement for professional services, either party may
terminate this Agreement for any reason upon giving the other party written notice of
such termination no fewer than ten (10) days in advance of the effective date of said
termination.
11. Integration. The Agreement between the parties shall consist of this document and any
schedules or exhibits listed in this agreement and attached hereto. These writings
constitute the entire Agreement of the parties and shall not be amended except by a
writing executed by both parties. In the event of any conflict between this written.
Agreement and any provision of Exhibit A, this Agreement shall control.
12. Non-waiver. Waiver by the City of any provision of this Agreement or any time
limitation provided for in this Agreement shall not constitute a waiver of any other
provision.
13. Non-assignable. The services to be provided by the Consultant shall not be assigned or
subcontracted without the express written consent of the City.
14. Covenant against contingent fees. The Consultant warrants that he has not employed or
retained any company or person, other than a bona fide employee working solely for the
Consultant, to solicit or secure this Agreement, and that he has not paid or agreed to pay
any company or person, other than a bona fide employee working solely for the
Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other
consideration contingent upon or resulting from the award of making of this Agreement.
For breach or violation of this warranty, the City shall have the right to annul this
Agreement without liability or, in its discretion to deduct from the Agreement price or
consideration, or otherwise recover, the full amount of such fee, commission, percentage,
brokerage fee, gift, or contingent fee.
15. General Provisions. For the purpose of this Agreement, time is of the essence. In the
event a dispute regarding the enforcement, breach, default or interpretation of this
Agreement, the parties shall first meet in a good faith effort to resolve such dispute. In
the event the dispute cannot be resolved by agreement of the parties, said dispute shall be
resolved by arbitration pursuant to RCW 7.04A, as amended, and the Mandatory
Arbitration Rules (MAR); venue shall be placed in Franklin County, Washington, the
laws of the State of Washington shall apply; and the prevailing party shall be entitled to
its reasonable attorney fees and cost.
In the event any provision of this Agreement is deemed to be unenforceable, the other
provisions of the Agreement shall remain in full force and effect.
16. Notices. Notices to the City of Pasco shall be sent to the following address:
City of Pasco
P. O. Box 293
Pasco,WA 99301
CES Professional Services Agreement-4
Notices to the Consultant shall be sent to the following address:
Cascade Earth Sciences
12720 E. Nora Ave., Ste. A
Spokane,WA 99216
Receipt of any notice shall be deemed effective three (3) days after deposit of written
notice in the U. S. mails,with proper postage and properly addressed.
DATED THIS DAY OF , 20
CITY OF PASCO CONSULTANT:
By By:
Matt Watkins, Mayor Steven L, Venner, CPAg
Managing Soil Scientist
ATTEST:
Debbie CIark, City Clerk
APPROVED AS TO FORM:
Leland B. Kerr, City Attorney
CES Professional Services Agreement- 5
EXHIBIT A
� CES
Cascade Earth Sciences
A vakTwntT comPANY Conserving Resources. Improving Life.
12720 E. Nora Ave., Ste. A Ph: 509.921.0290
Spokane, WA 99216 Fax: 509.921.1788
November 23, 2011
Ahmad Qayoumi
Director of Public Works
City of Pasco
PO Box 293
525 N. Third Avenue
Pasco, WA 99301
SUBJECT: Proposal/Scope of Work for the Process Water Treatment System Optimization and
Improvement Plan - Phase 1
Dear Mr.Qayoumi:
Cascade Earth Sciences (CES) is pleased to submit this proposal to design Phase 1 of the Process
Water Treatment System Optimization and Improvement Plan.
Background
The City of Pasco (City) treats and reuses the process water produced by the Pasco Processing Center
during vegetable processing by applying it to agricultural crops grown on the City's land treatment
fields. The agronomic capacity of the land dictates the maximum process water volume that can be
delivered from the Pasco Processing Center to the City for treatment and reuse. Pre-treatment of the
process water can increase its loading limits within the current agronomic capacity, while the agro-
nomic capacity can increase with improvements in irrigation, cropping, operational and data man-
agement, and land use. The City would like to optimize the treatment capability of the existing sys-
tem, via pre-treatment and increasing the agronomic capacity, to maximize additional process water
loadings.
CES conducted a comprehensive inspection of the system from process water source to irrigation field
with a team of specialists in engineering, agronomy, irrigation design,and system configuration and
operations. We gained a complete understanding of the system, current sizing, operational aspects,
and weaknesses and opportunities for optimization. The key limitation is that the fields are essential-
ly at their agronomic capacity under the current operations. However,we identified several strate-
gies the City can employ to increase the agronomic capacity and amount of process water they can
apply if they implement specific operational and capital improvements. The City can optimize the
treatment potential of the existing system and maintain a passive low cost treatment philosophy to
provide the Pasco Processing Center with the maximum additional process water delivery capability
to the City at the lowest possible cost.
Currently there is Iittle system pre-treatment,which is affecting functionality and reducing system
treatment capability. Phase 1 improvements include medium screening, grit removal, fine screening,
and implementation of improved field monitoring and management. The benefits and estimated cost
of Phase 1 include:
City of Pasco
Process"later Treatment System �Es
Optimization and Improvement Plan-Phase 9
November 23,20]]
Page 2
• Reduced abrasion expanding system life
• Expand storage volume through reduced sediment deposition
• 77,000 lb of additional agronomic nitrogen capacity
• 103 MG additional process water delivery capability
• Budgetary cost is$1,454,000
Phase 2 will include sediment removal; potentially fats,oil, and grease (FOG) removal; and expansion
of the irrigated area within the existing City-owned land, The benefits and cost of Phase 2 include:
• Further reduction in abrasion expanding system life
a Phase 3 requires sediment removal
• FOG removal, if incorporated, will further reduce biochemical oxygen demand (BOD) and ni-
trogen concentrations
• 53,000 lb additional agronomic nitrogen capacity
• 79 MG of additional process water delivery capability
• Reduced hydraulic loading to the entire system in early spring and late fall
• Budgetary cost is $1,654,560
An Advanced Facultative Pond is the option considered for Phase 3 during the conceptual design ef-
forts because it will provide BOD reduction and additional storage passively. The benefits and cost of
Phase 3 include:
• Reduce biochemical oxygen demand concentration to allow longer storage time
• Increase the percentage of process water in the total irrigation made possible by storage longer
into the spring
• Expand storage volume by at least 30 million gallons
• Significantly reduce the odor potential in the spring
• Reduction in aerator operation will reduce power costs
a Reduced organic matter will significantly reduce the volume of biosolids produced in the
storage pond
Reduced biosolids production will reduce solids loading to the fields in early spring leading to
healthier soil conditions during crop emergence
20 MG additional process water delivery capability
• Budgetary cost is $1,350,000
With the improved water quality, crop production, and system management in place,further increas-
es in future process water delivery above the optimized system capacity will need to come from an
additional land base,which is outlined in Phase 4. It is not known if the City will purchase additional
land or develop a long-term land lease agreement, or where the land is located. However, for plan-
ning purposes we Can use a typical field size of 133 acres to provide the following benefits and cost
estimate per field:
• 47,200 lb of additional agronomic nitrogen capacity
City of Pasco L�r�
Process Water Treatment System
Optimisation and Improvement Plan-Phase 1
November 23,2011
Page 3
• 71 MG additional process water delivery capability
• Budgetary cost is$313,500 per field
Total potential increase of process water delivery capability with Phases 1, 2,and 3 is 202 MG. Actual
values will vary depending on site conditions and efficacy of all upgrades and management activities,
but we believe this estimate is balanced and achievable. Nevertheless, this large potential increase in
process water delivery capability clearly indicates significant opportunity to optimize the existing sys-
tem.
The City would like to implement the first phase of the system optimization in time for vegetable
processing in June 2012 and to begin field and cropping strategy improvements to meet the 2012
growing season. Phase 2 scheduling takes advantage of process flow and quality data collected up to
and following the Phase 1 pre-treatment installation and plans to use additional acreage during the
2013 growing season. The sedimentation portion of Phase 2 must be implemented before Phase 3.
Phase 3 scheduling accounts for the 2013-2014 storage seasons. The Phase 4 schedule considers being
on-line for the 2014 crop growing season.
This proposal is for the engineering design services,system management improvements, and data
management system for Phase 1 of the Process Water Treatment System Optimization and
Improvement Plan. Other recommended steps not included in this proposal can be provided
separately.
Objectives
This proposal has been prepared to provide a scope of work and cost estimate to design Phase 1 of the
Process Water Treatment System Optimization and Improvement Plan including:
1. Pre-treatment Preliminary Engineering and Data Acquisition
2. Pre-treatment Design
3. Pre-Treatment Final Design and Bid Document Preparation
4. System Management Improvement and Data Management System
Scope of Work
The following scope of work has been prepared to conduct a process water treatment system
evaluation.
Task 1: Pre-Treatment PreliminAU Engineering and Data Acquisition
CES will prepare a design basis technical memo to document the water quality, quantity, and timing
of flow and project objectives for review and approval by the City prior to starting design work. CES
will produce preliminary design documents with plan view drawings that show the size and location
of the each facility to be fully designed for phase 1 construction activities. These facilities include the
medium screen, grit chamber, and fine screen and a building to protect the screens from freezing
during winter operations. The preliminary design will also show the location of the proposed Phase 2
and Phase 3 facilities. After review and concurrence with the City, CES will proceed with surveying
and geotechnical engineering to gather the necessary data to proceed with full design of phase 1.
City of Pasco
Process Water Treatment System CES
Optimization and Improvement Plan- Phase 1
November 23,2011
Page 4
Deliverable:
Deliverables for Task 1 include design basis documentation, preliminary plan view drawings, sizing
information for major components of task 1,a topographic map of the construction site, and a
geotechnical report.
Task 2: Pre-Treatment Design
Based on the agreed upon preliminary design, CES will develop construction plans showing: foot-
print and profiles of the new structures, connection details to existing facilities, grading plans, civil
construction details, equipment installation locations, call-outs, and details, yard piping, mechanical
details, electrical line diagrams,controls,process flow diagrams, and hydraulic grade line for the new
facilities and adjacent existing facilities. Technical specifications will be provided. Plans and specifi-
cations will be acceptable quality to allow construction by a qualified contractor.
CES will provide the City with updates at least every two weeks on progress,choices that need to be
made for continued progress, assumptions made,changes from previous updates, projected comple-
tion dates, and costs to date.
Deliverable:
Deliverables for Task 2 will be an 85% complete design including drawings and specifications. CES
will publish four copies of the plans on 11x17 inch sheets and two copies of the plans on 22x34 inch
sheets, along with six sets of 8.5x11 inch text documents of the technical specifications. Within two
weeks of submittal of the 85% design, a CES project team member will meet with the City to discuss
the plan and identify any changes needed prior to preparation of the final plans
Task 3: Pre-Treatment Final Design and Bid Document Preparation
After receiving final comments on the design from the City, CES will make requested changes and
prepare final bidding documents. The documents will include invitation to bidders, bid form, con-
tract, general condition specifications, special condition specifications, plans, and technical specifica-
tions. CES can include standard City forms for the invitation to bidders,bid for, contract, and general
conditions or provide our own at the City's discretion.
Task 3 includes a pre-bid conference to be attended by a CES,project team member, a meeting with
the City after the bid to advise on bidder selection, and a pre construction meeting with the successful
bidder.
Construction management and inspection services will be discussed with the City, to be included in
an additional authorization.
Deliverable:
Deliverable for Task 3 is the Bid Documents including final engineering plans.
Tasks I- 3 Sub-Total Cost : $128,700.00
City of Pasco
Process Water Treatment System CES
Optimization and Improvement Plan-Phase I
November 23,2011
Page 5
Task 4: System Management Improvement and Data Management System
CES will review and update all soil, water, and crop monitoring protocols and methods, and consult
with Valmont Northwest to inspect and recommend pivot upgrades as needed, Specifically, we will
implement the following tasks: evaluate and recommend the correct soil moisture monitoring system
and their location in each field,work with the farmer co-operators to improve crop rotations and har-
vest timing, develop and implement a Land Treatment System Operation and Management Manual,
and design a data management system specific to process water reuse that will provide the system
operators and farmer co-operators with near real-time field-by-field nitrogen balances,field loadings,
and produce system management reports on-demand.
Deliverable:
Deliverables for Task 4 will include recommended moisture monitoring system and locations, crop
rotation and harvest improvements,land treatment system operations manual,Water Sentinel data
management system, and irrigation pivot upgrade recommendations.This task includes CES project
team members meeting with the City operators and farmer co-operators and communications as
needed.
Task 4 Sub Total Cost: $75,000.00
Project Cost
Total Estimated Project Cost: $203,700.00
Phase 1-Pretreatment Construction'
Component Preliminary Cost Estimate
Preliminary Engineering Construction Subtotal] $858,000
Engineering Design $128,700.00
Construction Management,Admin(recommended) $85,800.00
Subtotal $1,072,500.00
Contingency (20% Recommended) $214,500.00
Recommend Budget Prior to Design $1,287,040.00
Phase 1 Monitoring,Operations,and Irrigation Improvements
Soil moisture monitoring existing fields $42,000
Irrigation System Improvements $50,000
System Management Improvements $25,000
Data Management System $50,OOD
Subtotal $167,000
Phase 1 Planning Total $1,454,000.00
Cost included in this proposa I for authori2adon are shaded $203,700.00
Notes:
1)Costs are based on conceptual design and order of magnitude unit cost estimates(+/-30%)as shown in the Process
Water Treatment System Optimization and Capital improvement Plan report. Cost estimates developed from a nvx-
ture of vendor quotes,recent CES projects,engineering cost estimate guidelines,and professional experience. Full
design is required to develop prior to construction.
City of Pasco ��
Process Water'Treatment System
Optimization and Improvement Plan-Phase 1
November 23,2011
Page b
CES will honor the quoted cost estimate for ninety (90) days from the date of this estimate and
thereafter reserves the right to make any necessary modifications.
Assumptions and Limitations
The assumptions listed below and within the task descriptions above have been used to prepare the
proposed scope of work and cost estimate. Should differences from these assumptions be required or
encountered, CES will discuss the project cost implications with the City.
• Additional water quality data, as previously requested by CES,will be available prior to the
start of system design.
• Pilot testing of the potential treatment steps may be recommended to confirm actual perfor-
mance with existing water quality and site conditions. Cost to conduct the pilot testing is not
included in the scope of work,
• Property boundaries, location of existing buried utilities and accurate as-built drawings for the
existing infrastructure will be provided to CES. If CES needs to determine or create these we
will advise the City if additional cost will be incurred,
• Engineering designs will be prepared in anticipation of a public bidding process for system
construction.
Schedule
CES is scheduled to begin work immediately upon authorization and complete Tasks 1 - 3 by a target
date of February 1,2012, assuming Authorization by December 5,2011. Task 4 items will be
completed by the middle of the 2012 crop growing season.
Quality
CES is committed to providing quality products and services that consistently meet or exceed our
clients' expectations.
Safety
CES is committed to its safety mission: "A passion for world-class safety: excellence in execution,
employee commitment, innovation, exceptional communications_globally." CES employees will
apply the principles of this mission to ensure that safety is a priority for the duration of the project
and for everyone involved in its completion.
City of Pasco ��
Process Water Treatment System
Optimization and Improvement Plan-Phase 3
November 23,2011
Page 7
Compensation
The attached cost estimate is not a lump sum. Total estimated costs are based on available
information used to develop the scope of work and are a "good faith" estimate of charges that will not
be exceeded without additional authorization by the City. Actual billings will be based on a time and
materials basis per the Schedule of Fees attached. CES reserves the right to change our Schedule of
Fees on a yearly basis to reflect inflation and any increase in the cost of conducting business. Project
related outside services and other direct expenses, as well as the markup associated with these items,
are included in the overall cost of the project, If variables unknown at this time become apparent
during the course of perforating the services outlined and it is shown that additional staff time,
materials, testing,etc.will be required; CES will suspend work until a revised Work Authorization
has been signed by the City authorizing CES to proceed. The cost quotes contained in this proposal
do not include sales or other applicable taxes. If it is determined that taxes are required, they will be
in addition to cost quotes provided. All invoices net 30 days,18% per annum.
Terms and Conditions
All work under this authorization shall be in accordance with the City of Pasco Professional Service
Agreement provided by the City to CES. Work will commence upon receipt of this signed document,
or a City of Pasco Purchase Order listing CES proposal number P201123082 for the amount of
$203,700.00 at our Spokane field office. Please retain the copy of this proposal,with attached CES
Schedule of Fees,for your files.
Thank you for the opportunity to propose this scope of work and cost estimate. Please contact me at
(509) 921-0290 if you have any questions or comments. We look forward to working with you.
Sincerely,
CASCADE EARTH SCIENCES
A� V-,
Steven L.Venner,CPAg
Managing Soil Scientist II
SLV/mab
Enr. Schedule of Fees
PPN: P201123082
Doc: P201123082 City Pasco Phase 1,docx
City of Pasco ��J
Process Water Treatment System
Optimization and Improvement Plan-Phase 1
November 23,2011
Page 8
Authorization for CES to Provide Services
CES is authorized to provide the services outlined for the estimated cost of$203700.00. I understand
this is an estimate of the project costs and that the estimate will not be exceeded without additional
authorization. I also understand the scope of work,compensation, and terms and conditions provided
in the proposal.
Reviewed and
Authorized By;
Signature Date
Name/Title of Signer (please print or type)
Company(if other than Client)
-CES
Cascade Earth Sciences
A vaknont'V compvgy
SCHEDULE OF FEES
Professional Services*
• Administrative Support/ Field Technician $56/hour
• Administrative Coordinator $66/hour
• Technician /Drafter/Technical Editor $75/hour
• Technician I1/Engineering Designer $83/hour
• Environmental Scientist $88/hour
• Staff $91/hour
• Staff Il $97/hour
• Project $102/hour
• Project 11 $110/hour
• Senior $120/hour
• Senior II $127/hour
• Managing $137/hour
• Managing II $148/hour
• Principal $178/hour
• Expert testimony @ 150% of the above rates
*Professional staff including soil scientists, hydrologists, geologists, engineers, biologists, and contract
administrators
Reimbursables
Expenses associated with the performance of services, including but not limited to:
• CES-owned equipment, meals and lodging, and project materials as proposed
• Mileage @$0.60/mile ($0.70 for 1/2-ton vehicle or larger)
Outside Services
Subcontracted services and equipment rental as proposed.
Taxes
Sales and other applicable taxes will be charged when necessary to meet tax requirements.
Payment
Invoices are to be paid within 30 days from date of invoice.
Interest on late payments Q 18% per annum.
40
PROJECT EXPERIENCE
CES currently provides wastewater land application consulting and design services on most of the large
land treatment systems regulated by the Washington Department of Ecology (Ecology) in Eastern and
Central Washington. In addition, we serve clients with land treatment systems in Oregon,Idaho,
California, Montana, Nebraska, Minnesota, New Mexico, Arizona,Texas, Tennessee,Louisiana,Georgia
and abroad in China.
CES provides complete process water treatment and reuse services to our clients. Services vary by
project but our suite of services include: pretreatment(screening, silt and grit removal, etc.), storage and
integrated lagoons,irrigation and cropping systems, soil moisture and irrigation scheduling,water reuse
monitoring and reporting, permit application and negotiation, system operations and training,
engineering design,construction management, groundwater hydrogeology and monitoring, and
comprehensive consulting associated with process water reuse systems.
Some key local project experiences are listed below,while additional experiences are available upon
request.
City of Pasco - Pasco, Washington
Contact: Reuel IQempel, Wastewater Plant Manager, (509) 545-3468
Since 1996, CES has assisted the City with permitting,monitoring, reporting, and technical support. Our
land application services have included Permit renewals and Permit limit increases, Engineering Reports,
five-year crop plans, Annual Farris Operations and Irrigation and Crop Management Plans, and technical
and regulatory support.
In 2010, CES conducted a comprehensive Land Treatment Site Capacity Assessment to define and
compare the hydraulic and nutrient loadings and agronomic capacity; and compare the agronomic
capacity to the Permit limits. In 2011, CES prepared a Process Water Treatment System Optimization
and Capital Improvement Plan. The Plan sets forth the strategies and recommendations to optimize the
treatment capability of the existing system, via pre-treatment and increasing the agronomic capacity, to
maximize additional process water loadings from the processors.
Pasco Processing Center, Port of Pasco, Washington
CES has served three of the four processors in the Pasco Processing Center with permitting and
regulatory support Reser's Fine Foods Inc.- Rob Wiskerchen, Manager, (509) 543-4939. Pasco
Processing,LLC- Robert Duenas, Environmental & Regulatory, (509) 544.6730. Twin City Foods, Inc.-
Tom Foster, Pasco Division Manager, (509)546-0850.
ConAgra Foods (9 facilities)
Process Water Re-use Management and System Design
Paul Halberstadt,Sr. Director Environment(509) 736-2573
CES provides environmental consulting and engineering services for potato process water management
including design,permitting,and management of land treatment systems for Lamb-Weston facilities in
five states: Pasco, Connell, Richland, and Paterson Washington; Hermiston, Oregon;American Falls and
Twin Falls Idaho,Delhi, Louisiana;and Park Rapids,-Minnesota. Process water treatment ranges from
constructed wetlands to direct land application to secondary treatment followed by land application.
Engineering design and construction management support has included surge ponds,large storage ponds,
irrigation systems,pipelines,pump stations,and associated infrastructure. CES has prepared irrigation
CESA vahTWMt V COMPANY Cascade Earth Sciences—Project Experience
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PROJECT EXPERIENCE
and crop management plans;solids residual management plans;hydrogeologic evaluations and facility
engineering reports for this client. CES hydrogeologists have planned and supervised installation of
groundwater monitoring networks. CES has developed plans for monitoring groundwater, surface water,
residuals, soil properties, and crop harvest. CES also provides data management systems, and compliance
leak testing. Current CES activities at Lamb-Weston facilities include preparing annual reports and
management plans, providing consultations for permit negotiations, facilitating long-range process water
facilities planning and expansion, and substantial technical and engineering consulting. CES is proud to
have provided service to Lamb Weston since 1989.
Smith Frozen Foods -Weston, Oregon
Process Water Treatment, Management, and Reuse
Contract: Morris Hansen, Operations Manager, (541) 566-3810
CES has assisted Smith Frozen since 1987 with their process water treatment, management, and reuse.
Services vary by year and have included design and construction management of their storage pond,
transmission pipeline and surge pond; training of environmental personnel; groundwater well
installation,monitoring, analysis, and compliance negotiation;soil, crop monitoring and annual report
preparation; pretreatment of brine water separate from the main process water stream; pond leak testing
and certification; Phase I and 11 ESA; permit negotiations; and consulting in support of the process
water reuse system.
Hermiston Foods - Hermiston,OR
Site Evaluation and Permittin& Operations Planning and Consulting,Hydrogeology, and Reporting
Contact: Mr. Marie Steele - (503) 769-2101
Hermiston Foods has operated a land treatment system for its vegetable processing water for more than
20 years. CES prepared the original Site Characterization,Hydrogeologic Study and Operations
Management and Monitoring Plan in 1990 to support the permitting process. From mid-2009 to present,
CES has provided technical expertise and services for permitting a new land application site. The
services have included site soils evaluation, revisions to the Operations,Management and Monitoring
Plan(OM&M Plan), Hydrogeologic Study,Site Characterization Report, technical support for irrigation
design and operations,and testimony and support for public hearings and regulatory negotiations.
Oregon Department of Environmental Quality permit limits proved unworkable early in the startup
phase of the land treatment operations. CES has contributed directly to the development of practical
irrigation management and soil monitoring alternatives and moisture targets to create a workable
solution. CES has also provided consultations for reducing irrigation spray drift from pivot irrigation in
addition to groundwater data evaluation and reporting.
REC Silicon- Moses Lake, WA
Feasibility, Design, Construction Management, Hydrogeology, and Reporting
Contact: Mr. Greg Fillipi-(509) 766-9687
CES developed a feasibility study,cost estimate,and design for a land treatment system,and guided
REC Silicon through the permitting process. CES prepared the plans and specifications for construction
of a 60 MG storage pond for non-contact cooling water along with a pump station, pipeline, and
connection to an existing land application system. The pond is a two-cell storage facility that has a 100-
mil HDPE liner. The size of the pond necessitated Ecology Dam Safety approval,which CES obtained.
The design includes safety and maintenance features to facilitate cleaning. The pump station includes
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PROJECT EXPERIENCE
two sumps, a dry well, and a control building. Controls and valves, including backflow prevention,
allow use of either well water or process water on the irrigated property.
CES prepared the hydrogeologic study for this project and recently prepared both, an updated
hydrogeological study and the annual irrigation and crop management plan in support of the permit
requirements.
OB-3 Resource Management- Warden,WA
Feasibility, Design, Construction Management, Permitting, Hydrogeology, Monitoring, and Reporting
Contact: Mr. Jack Calder- (509) 349-2547
CES was retained by OB-3 Resource Management to investigate, design,permit,and construct an 8.5
mile long forced main pipeline, pump stations, and a 160 MG storage pond. CES provided support
during construction, and the storage pond leak detection plan. CES provided federal, state, and local
permitting support, which included two counties, Ecology Dam Safety, and the United States Bureau of
Reclamation.
The pipeline delivers 2.9 million gallons per day of wastewater from the City of Warden industrial
facility to a 4,000-acre land application treatment system. Pipeline construction required a jack and bore
crossing of the East Low Canal. Additionally, the pipeline required design and construction of two lift
stations.
CES prepared the Operations and Maintenance Manual,and currently provides regulatory support
including preparation of the annual irrigation and crop management plan,and assistance with data
management for the monthly discharge monitoring reports required by the permit.
Port of Moses Lake- Moses Lake,WA
Feasibility,Design, Construction Management, Permitting, Hydrogeology,Monitoring, and Reporting
Contact: Mr. David Bailey- (509) 762-5363
CES was hired to create a feasibility study, cost estimate, and design for a non-contact wastewater land
treatment system, and to guide the Port of Moses Lake through the permitting process. The project has
provided the Port of Moses Lake with decade's worth of expansion. The collection pipeline,pump
station,and covered storage pond were designed by Montgomery-Watson as CES' subcontractor. CES
designed the irrigation pump station, delivery piping and irrigation system, and provided full-time
construction engineering review and oversight.
CES prepared the engineering report, permit application, hydrogeological assessment, and conducted
the site soil and groundwater monitoring and reporting for the first year of operations. Subsequently,
CES provided technical support to add another user, the United States Forest Service Tanker Base, and in
discussions with another potential user,Takata, who was not added.
The existing system consists of a mile long gravity sewer to collect process water, which is then pumped
5 miles to a 29 million gallon (MG) lagoon. A four-acre, floating polypropylene lagoon cover minimizes
bird attraction to the runways of the Grant County International Airport. The irrigation pump station
supplies the process water to two computer-controlled center pivots for irrigation of alfalfa and grain
crops. The project currently accommodates 250,000 gallons per minute and cost$3.8 million.
CESA vabTKWIt V COMPANY Cascade Earth Sciences—Project Experience
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PROJECT EXPERIENCE
J.R. Simplot - Othello, WA
Reporting and Technical Support
ContacN Ms. Andrea Bongen- (509) 331-3983
CES has served J.R. Simplot in Othello since about 1997 and has prepared all of their annual regulatory
reports since that time. CES also prepared their leak detection plan and provides crop and soil
management support on an as needed basis.
National Frozen Foods- Quincy, WA
Reporting and Technical Support
Contact: Mr. Bill Wagoner- (509) 787-1585
CBS has served National Frozen Foods since about 1996 and has prepared all of their annual regulatory
reports since that time. CES has also prepared their Engineering Reports for land expansion,conducted
hydrogeological assessments, assisted with permit renewals, and regulatory and technical support. CES
also designed and prepared plans and specifications for an upgrade of water delivery pumping and
piping for the land expansion,
1. R. Simplot- Moses Lake, WA
Design, Permitting,Monitoring, and Reporting
Contact: Mr. Andy Erickson - (509) 793-1187
CPS has served J.R. Simplot in Moses Lake since about 1997 and has prepared all of their annual
regulatory reports since that time. CES has also prepared three Engineering Reports for process water
treatment upgrades or adding new land,conducted hydrogeological assessments and annual statistical
analysis, assisted with permit renewals, and provided substantial technical assistance. CES developed
the Operations and Maintenance Manual for the entire system including the anaerobic digester and
storage pond as well as preparing the anaerobic digester Leak Detection Plan.
Basic American Foods- Moses Lake, WA
Design, Permittin&Monitoring, and Reporting
Contact: Mr. Mike Dodds- (509) 766-7876
CES has provided Basic American Foods with technical and regulatory support for many years including
Engineering Report work, groundwater modeling,vadose zone monitoring design,data analysis, and
regulatory intervention.
Norco Inc, Moses Lake-WA
Permitting and Technical Support
Contact: Mr. Ned Pontious- (208) 336-1643
Norco Inc retained CES to assist them with wastewater quality and quantity evaluation in support of
preparation their Engineering Report. Norco Inc supplies non-contact cooling water discharge to the
City of Moses Lake.
C'EsA V71kTmmt'V cowANY Cascade Earth Sciences-Project Experience
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PROJECT EXPERIENCE
Western Polymer • Moses Lake, WA
Retention Pond Design,Permitting Technical Support, and Reporting
Contact: Ms. Bonnie White- (509) 765-1803
CES has provided Western Polymer with engineering and environmental services for many years
including: storage and settling pond designs, Engineering Reports in 1997 and 2003, regulatory annual
reporting since 2007,and permit and regulatory support on an as needed basis.
Boise Building Solutions-Kettle Falls, WA
Retention Pond Design and Ecology Dam Safety Approval
Contact: Ryan Lawrence- (509) 738-3249
CES provided plans and specifications for a two-ceIl HDPE lined pond with a capacity of 11 MG,and
two unlined stormwater ponds with capacities of 1.3 MG and 2.7 MG and a pump sump to be used in
emptying the lined pond. The lined pond is an off stream facility for containment and recycling of
process water. The unlined ponds are off-stream facilities with 13,000 cubic yards (cy) balanced
excavation and embankment fill. CES prepared documentation to obtain Ecology Dam Safety Office
approval in order to permit the lined pond.
The storage pond was constructed in an existing depression with a balanced cut and fill of
approximately 7,000 cy of sludge excavated and hauled away, and an earth excavation of 19,000 cy,
which was used as fill in the earthen dike. The storage pond design included a 60-mil HDPE liner,liner
ballast,ladders,and concrete inlet, outlet and overflow structures. A pump station was constructed and
enclosed in a building for potential winter operations. A chain link fence was included in the design to
prevent wildlife access to the pond.
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KEY PERSONNEL
CES is composed of highly qualified technical staff with specialized education and experience in the
earth sciences and engineering focused on practical cost effective process water treatment and reuse,
Traditional environmental consulting is dominated by engineers with construction or manufacturing
experience. Engineering practices alone are not always suitable for evaluating natural reuse and
treatment systems and identifying the most practical, sustainable and cost effective solution.
Following are biographical summaries of key personnel at CES who would manage, implement, and
present your project.
Steven Penner, CPAg
Managing II Scientist
Steven Veneer has served the City of Pasco since 1996 with permitting, monitoring, reporting, and
technical support. He has provided technical assistance on the Engineering Report and Irrigation and
Crop Management Plans to support permit renewals and permit limit increase and gain regulatory
approvals on the existing system. Mr.Venner fully understands the City's land treatment system and
regulatory needs. He conducted the Land Treatment Site Capacity Assessment in 2010 and was the
project manager for the Process Water Treatment System Optimization and Capital Improvement
Plan. He will continue to fill the role of project manager on this project and be the primary contact to the
City.
Mr.Venner has 15 years experience as a Soil Scientist/ Agronomist and 3 years experience as a Crop
Production Specialist. He has experience managing wastewater land application systems and meeting
regulatory requirements including permit development and renewals,NPDES permitting, and
development of Engineering Reports for industrial wastewater land application systems. Mr.Venner
has experience with wastewater farm management plans, irrigation and crop management plans for
food processors and municipalities, and soil investigations to assess site capacity for wastewater land
treatment. He has experience with land application of biosolids and by-products including field trial
design, agriculture registration,and evaluating beneficial re-use alternatives. His background includes
farming, field research, zero tillage farming systems, soil fertility monitoring, interpretation, and
recommendations.
Greg Thurman, PE
Managing II Engineer
Greg Thurman participated in the Pasco Processing Center Process Water System Optimization and
Improvement Plan including pretreatment system sizing and configuration. He will continue to
participate on the engineering team during all phases of the system design providing process water
treatment direction. Greg will lead the Advanced Facultative Pond sizing and design as our expert in
this area and will provide technical review on other treatment components. Greg's deep experience with
primary and secondary treatment of food process water is an asset to the design, balancing effectiveness,
cost,and dependability.
Mr. Thurman is a registered Washington professional chemical engineer with over twenty years of
consulting and project management experience. Mr.Thurman has managed and consulted on engineering
and environmental projects,both nationally and internationally,from conception to completion,including:
primary and secondary wastewater treatment;land application of industrial and agricultural wastewater;
irrigation design;hazardous waste investigations and remediations; lagoon design and management;
landfill design,operations and closures;hydrogeologic studies;and environmental
CESA vabTKmtY COMPANY Cascade Earth Sciences—Key Personnel
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KEY PERSONNEL
assessments/mitigation projects. Mr. Thurman also has extensive experience in various pollution control
evaluations,feasibility studies, cost analysis, risk assessment,permitting, and project management. Mr.
Thurman's strong project management background, familiarity with government regulations, and
expertise in both traditional and non-traditional engineering techniques are an asset for completing a wide
range of projects.
Jay Williams, PE
Managing 11 Engineer
Jay Williams provided the conceptual civil engineering components and sizing for the City of Pasco
Process Water Treatment System Optimization and Capital Improvement Plan, Jay will continue to
serve as the senior civil engineer on this project.
Jay Williams is a civil engineer with 30 years experience in engineering and construction. Mr. Williams'
experience includes designing piping systems, water control structures,open channel water systems,
and retaining structures and irrigation systems. He has also managed projects in construction of
pipelines, canals,concrete and steel structures,and earthwork. This experience includes new
construction,rehabilitation, and retrofit projects. He has managed operations and directed operations
and maintenance plans. Mr. Williams has experience in working with regulatory agencies to obtain the
necessary permits to complete projects. He has reviewed numerous development plans for compliance
with local regulations.
Steel Maloney
Principal Hydrologist
Steel Maloney participated in the Pasco Processing Center system inspection and expansion options
assessment and will continue to participate in the design and construction phases. His experience with
many other industrial land based water reuse projects will be an asset to the project team. He will assist
with system configuration, treatment approach/options, project contract and budgeting, technical
review and public or user participation processes.
Mr.Maloney has over 25 years of experience as a hydrologist consulting on environmental and water
quality,reuse,supply and efficiency. He has worked on a variety of projects domestically and
internationally which have included numerous land applications of industrial residuals and process
water,municipal wastewater management, surface water hydrology, permit negotiation, and
management of public participation, Mr. Maloney is President of CBS and oversees our key clients,
design-build projects, international business, as well as serving as a technical expert on water quality
management, water reuse, permit negotiations and public participation management.
Daniel Burgard, CPSS
Principal Soil Scientist
Dan Burgard has served the City of Pasco since 1996 with permitting,monitoring, reporting,technical
support, and principal oversight. Mr. Burgard fully understands the City's land treatment system and
regulatory needs.
Mr. Burgard has 23 years of experience as a soil scientist and 4 years of experience in manufacturing.
His background is wide ranging with experience focusing on beneficial uses of wastes and wastewater,
and soil chemistry. Mr. Burgard currently holds the position of Principal Soil Scientist with
responsibilities as, Technical Lead for Food Processing Business and corporate Soils Disciplines Lead.
CESA vab70Rt'f CCaWANY Cascade Earth Sciences—Key Personnel
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KEY PERSONNEL
Job responsibilities include project management, scientific staff supervision and mentoring,coordinating
the internal company continuing education training program,leading CES-sponsored land application
reuse workshops, developing business with food processors, and technical supervision/review of
waste/wastewater reuse projects and reports. Project areas have focused on land application reuse and
use of industrial and municipal wastes and wastewaters as resources for crop production. Projects have
included permitting, design, reporting, and consulting services for treatment and land treatment of
wastewaters from potato, fruit, vegetable, and meat processing, municipal wastewater treatment plants,
paper mills, power plants, and coal-bed methane producers. Expertise includes sludge management and
biosolids management. Key technical areas of expertise are treatment processes, soils, soil-plant-water
interactions, crop production, and irrigation.
Kristofor Snider
Staff II Engineer
Kristofor Snider has over five years of experience as an engineer. He has engineering experience in the
design of wastewater, drinking water, and stormwa ter projects. Mr. Snider has worked on all aspects of
the engineering process from project planning to project completion. He has designed pump stations,
wastewater pretreatment equipment, solids dewatering systems, mechanical aeration systems,
disinfection systems, and liquid storage tanks. Mr. Snider has conducted reviews of construction
submittals,requests for information, pay applications, and change order during the construction phase
of projects. In addition,he has also served as the onsite engineering representative during the
construction phase; where he was responsible for keeping daily logs of the contractors work and
verifying that the work was completed according to the contract documents.
Richard (Kyle) Billings
Engineering Technician/Drafter
Mr. Billings has 11 years of experience in providing engineering technician/ drafting services, He has
extensive use of AutoCAD Civil 3D 2008-2010,AutoTurn 2006-2010,and AutoCAD R14-LDD 2008.
As CES`engineering technician/drafter,Mr. Billings is responsible for the drafting and engineering
support needs of the engineers and scientists at CES. It is his responsibility to ensure that the drafting is
produced in a timely manner that meets the requirements set forth in CES' Quality Assurance, Quality
Control standards.
Mr. Billings is accountable for all drafting duties from design of general site maps to volume calculations.
He is also responsible for construction documents and specifications, and assembly and layout of large
wastewater land application irrigation systems.
As a Designer/Drafter, Mr. Billings has been responsible for the design and drafting of diverse civil
engineering projects including roadways; site development; land development(subdivision layout,
platting, roads, utilities,record drawings, etc.);sewer collection; sewer treatment; storm water collection,
storm water treatment, water distribution; water storage and booster pump stations.
Mr. Billings has provided Designer/Drafting support for the following Key projects with key elements
that will support the City of Pasco:
• Construction of anew 5,500 gallon per minute booster station and two 550,000 gallon water storage
reservoirs - City of College PIace, Washington.
• Replacement of Pumps and Well House's No. 1 and No. 3 -City of Walla Walla, Washington.
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KEY PERSONNEL
• Replacement of Rest Area Water System- WSDQT Indian john Hill Rest Area.
• Construction of a wastewater treatment facility- City of Plummer, Idaho.
• Design and relocation of process water lines, mine access roads,and main haul.road- Fort Knox
Gold Mine, Fairbanks,Alaska.
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QUALITY AND SAFETY
Quality Assurance Statement
CES' quality assurance policy is simple--do the right thing the right way the first time and do it with no
surprises. CES' quality assurance methods reduce the risk to our customers by providing a high quality
product that is managed, produced and reviewed by the most appropriate personnel. CES' senior
project managers start each project by assigning the appropriate technical staff from our team of resource
scientists and engineers. We believe that most client needs are best achieved by an interdisciplinary
team of soil scientists, geologists, hydrologists, engineers, etc. Each technical area in CES is led by a
discipline manager who has extensive training and experience in their area. The discipline managers are
a resource to our clients and junior staff for technical leadership.
Technical and management skills are maintained at a high level through internal transfer meetings and
project management training classes. CES' scientists
and engineers also teach, attend and provide
presentations at various industrial conferences and
workshops which allow us to stay current with new '
environmental solutions and issues.
CES projects undergo a review and checklist "
procedure to ensure a quality product is produced
and delivered. However, only you the client can be
the final judge of quality. Any product that you are x
not satisfied with will be completed to your
satisfaction.
Ninety eight percent of our clients in 2009, 2010,and .
2011 indicate that they will recommend CES and use CES is committed to its safety mission: "A passion for world-
us again(documented by post-project client class safety:excellence in execution,employee commitment,
questionnaires). We cannot think of a better way to innovation exceptional communications...globally."
demonstrate our commitment to customer
satisfaction.
Commitment to Safety
The CES Team is committed to its safety mission: "A passion for world-class safety: excellence in execution,
employee commitment, innovation,and exceptional communications: globally." CES Team employees will
apply the principles of this mission to ensure that safety is a priority for the duration of the project and for
everyone involved in its completion.
CES has not had a recordable safety incident in 2010 and 2011. Additional we are registered with
ISNetworld and Browz global procurement companies that screen and evaluate safety,insurance,and
compliance records.CES maintains a high rating with both.
CES has a strong commitment to safety during all aspects of a project and has developed and
implemented safety policies relating to our different work environments and situations. The policies are
available upon request. The CES field staff members are audited while on projects to ensure that safety
policies are practiced. Health and Safety Plans are developed and implemented for projects with
potential chemical exposures, or as appropriate.
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0 8
Cascade Earth Sciences
A .ah„«,t T co pAw Conserving Resources. Improving Life.
12720 E. Dora Ave., Ste. A Ph: 509.921.0290
Spokane, WA 99216 Fax: 509.921.1788
November 23, 2011
Ahmad Qayoumi
Director of Public Works
City of Pasco
PO Box 293
525 N. Third Avenue
Pasco, WA 99301
SUBJECT: Proposal/Scope of Work for the Process Water Treatment System Optimization
and Improvement Plan- Phase 2
Dear Mr. Qayoumi:
Cascade Earth Sciences (CES) is pleased to submit this proposal to design Phase 2 of the Process
Water Treatment System Optimization and Improvement Plan.
Background
The City of Pasco (City) treats and reuses the process water produced by the Pasco Processing Cen-
ter during vegetable processing by applying it to agricultural crops grown on the City's land
treatment fields. The agronomic capacity of the land dictates the maximum process water volume
that can be delivered from the Pasco Processing Center to the City for treatment and reuse. Pre-
treatment of the process water can increase its loading limits within the current agronomic capaci-
ty,while the agronomic capacity can increase with improvements in irrigation, cropping, opera-
tional and data management, and land use. The City would like to optimize the treatment capabil-
ity of the existing system, via pre-treatment and increasing the agronomic capacity, to maximize
additional process water loadings.
CES conducted a comprehensive inspection of the system from process water source to irrigation
field with a team of specialists in engineering,agronomy, irrigation design, and system configura-
tion and operations. We gained a complete understanding of the system, current sizing, opera-
tional aspects, and weaknesses and opportunities for optimization. The key limitation is that the
fields are essentially at their agronomic capacity under the current operations. However,we iden-
tified several strategies the City can employ to increase the agronomic capacity and amount of pro-
cess water they can apply if they implement specific operational and capital improvements, The
City can optimize the treatment potential of the existing system and maintain a passive low cost
treatment philosophy to provide the Pasco Processing Center with the maximum additional pro-
cess water delivery capability to the City at the lowest possible cost.
city of Pasco ���
Process Water Treatment System
Optimization and improvement Plan-Phase 2
November 23,2011
Page 2
Currently there is little system pre-treatment,which is affecting functionality and reducing system
treatment capability. Phase 1 improvements include medium screening, grit removal, fine screen-
ing, and implementation of improved field monitoring and management. The benefits and esti-
mated cost of Phase 1 include:
• Reduced abrasion expandu1g system life
• Expand storage volume through reduced sediment deposition
• 77,000 lb of additional agronomic nitrogen capacity
0 103 MG additional process water delivery capability
• Budgetary cost is $1,454,000
Phase 2 will include sediment removal;potentially fats, oil, and grease (FOG) removal; and expan-
sion of the irrigated area within the existing City-owned land. The benefits and estimated cost of
Phase 2 include:
Further reduction in abrasion expanding system life
• Phase 3 requires sediment removal
• FOG removal, if incorporated, will further reduce biochemical oxygen demand (BOD) and
nitrogen concentrations
53,000 Ib additional agronomic nitrogen capacity
• 79 MG of additional process water delivery capability
• Reduced hydraulic loading to the entire system in early spring and late fall
• Budgetary cost is$1,654,560
An Advanced Facultative Pond is the option considered for Phase 3 during the conceptual design
efforts because it will provide BOD reduction and additional storage passively. The benefits and
estimated cost of Phase 3 include:
• Reduce biochemical oxygen demand concentration to allow longer storage time
Increase the percentage of process water in the total irrigation made possible by storage
longer into the spring
• Expand storage volume by at least 30 million gallons
• Significantly reduce the odor potential in the spring
• Reduction in aerator operation will reduce power costs
• Reduced organic matter will significantly reduce the volume of biosolids produced in the
storage pond
• Reduced biosolids production will reduce solids loading to the fields in early spring lead-
ing to healthier soil conditions during crop emergence
0 20 MG additional process water delivery capability
• Budgetary cost is $1,350,000
City of Pasco
Process Water Treatment System
Optimization and Improvement Plan-Phase 2
November 23,2011
Page 3
With the improved water quality, crop production, and system management in place, further in-
creases in future process water delivery above the optimized system capacity will need to come
from an additional land base,which is outlined in Phase 4. It is not known if the City will pur-
chase additional land or develop a long-term land Iease agreement, or where the land is located.
However, for planning pyirposes we can use a typical field size of 133 acres to provide the follow-
ing benefits and cost estimate per field:
• 47,200 lb of additional agronomic nitrogen capacity
• 71 MG additional process water delivery capability
• Budgetary cost is$313,500 per field
Total potential increase of process water delivery capability with Phases 1, 2, and 3 is 202 MG. Ac-
tual values will vary depending on site conditions and efficacy of all upgrades and management
activities, but we believe this estimate is balanced and achievable. Nevertheless, this large poten-
tial increase in process water delivery capability clearly indicates significant opportunity to opti-
mize the existing system.
The City would like to implement the first phase of the system optimization in time for vegetable
processing in June 2012 and to begin field and cropping strategy improvements to meet the 2012
growing season. Phase 2 scheduling takes advantage of process flow and quality data collected up
to and following the Phase 1 pre-treatment installation and plans to use additional acreage during
the 2013 growing season. The sedimentation portion of Phase 2 must be implemented before
Phase 3. Phase 3 scheduling accounts for the 2013-2014 storage seasons. The Phase 4 schedule
considers being on-line for the 2014 crop growing season,
This proposal is only for the engineering design services for Phase 2 of the Process Water
Treatment System Optimization and Improvement PIan. Other recommended steps not included
in this proposal can be provided separately,
Objectives
This proposal has been prepared to provide a scope of work and cost estimate to design Phase 2 of
the Process Water Treatment System Optimization and Improvement Plan including:
1, Pre-treatment Preliminary Engineering and Data Acquisition
2. Pre-treatment Design
3. Pre-Treatment Final Design and Bid Document Preparation
Scope of Work
The following scope of work has been prepared to conduct a process water treatment system
evaluation.
Task 1: Pre-Treatment Preliminary En&ineerin&and Data Acc[uisition
CES will prepare a design basis technical memo to document the water quality, quantity, and
timing of flow, reflecting information determined in Phase 1,and project objectives for review and
City of Pasco CES
Process Water Treatment System
Optimization and Improvement Plan-Phase 2
November 23,2011
Page 4
approval by the City prior to starting design work. CES will produce preliminary design
documents with plan view drawings that show the size and location of the facility to be fully
designed for Phase 2 construction activities. This includes a sedimentation basin to remove
sediment and silt size particles. We will utilize the survey and geotechnical information produced
during Phase 1 for Phase 2 design.
Deliverable:
Deliverables for Task 1 include design basis documentation,preliminary plan view drawings,
sizing information for the sedimentation basin, and a topographic map of the construction site
showing the facility location.
Task 2: Pre-Treatment Design
Based on the agreed upon preliminary design,CES will develop construction plans showing: foot-
print and profiles of the new structure, connection details to existing facilities, grading plans, civil
construction details, equipment installation locations, call-outs, and details,yard piping,mechani-
cal details, electrical line diagrams,controls, process flow diagrams, and hydraulic grade line for
the new facility and adjacent existing facilities. Plans and technical specifications will be accepta-
ble quality to allow construction by a qualified contractor.
CES will provide the City with updates at least every two weeks on progress, choices that need to
be made for continued progress,assumptions made,changes from previous updates, projected
completion dates, and costs to date.
Deliverable:
Deliverable for Task 2 will be an 85% complete design including drawings and specifications. CES
will publish four copies of the plans on 11x17 inch sheets and two copies of the plans on 2204 inch
sheets, along with six sets of 8.5x11 inch text documents of the technical specifications. Within two
weeks of submittal of the 85% design,a CES project team member will meet with the City to dis-
cuss the plans and identify any changes needed prior to preparation of the final plans
Task 3: Pre-Treatment Final DesjFn,and Bid Document Preparation
After receiving final comments on the design from the City,CES will make requested changes and
prepare final bidding documents. The documents will include invitation to bidders,bid form,con-
tract, general condition specifications,special condition specifications, plans,and technical specifi-
cations. CES can include standard City forms for the invitation to bidders,bid for,contract, and
general conditions or provide our own at the City's discretion.
Task 3 includes a pre-bid conference to be attended by a CES project team member, a meeting with
the City after the bid to provide advice on bidder selection,and a pre-construction meeting with
the successful bidder.
Construction management and inspection services will be discussed with the City, to be included
in an additional authorization.
Deliverable:
Deliverable for Task 3 is the Bid Documents with final plans.
City of Pasco CIS
Process Water Treatment System J
Optimization and Improvement Plan-Phase 2
November 23,2011
Page 5
Task 4: C ly-owned Small Field Expansion Design
CES will design the necessary components to implement the conversion of City-owned small fields
from non-irrigated to irrigated fields to increase the acreage available for process water. We will
design the transmission and connection pipelines, any necessary pumping considerations,and ir-
rigation system controls. We will coordinate with Valmont Northwest who will provide the above
ground center pivot design details.
CES will produce plan view drawings that show the size,location, and installation details of the
piping. We will develop construction plans showing: plan and profiles of the piping,connection
details to existing facilities and new pivots,and necessary details. Plans and technical specifica-
tions will be acceptable quality for regulatory submittal and to allow construction by a qualified
contractor.
Deliverable:
Deliverable for Task 4 is complete design including drawings, specifications, and unit quantities
suitable for procurement contracting.
Project Cost
Total. Estimated Project Cost: $914,900.00
Phase 2-Sediment Chamber and ini ation Expansion'
Component Preliminary Cost Estimate
Sediment Chambers(2) $ 404,000
Detail AIlowance $ 40,000
Expansion of small field irrigation(150 ac total) $ 705,000
Preliminary Construction Subtotal' $ 1,149,000
Engineering Design $ 214,900
Construction Management(recommended) $ 114,900
Contingency(recommended) $ 275,760
Phase 2 Planning Total $ 1,654,560
Notes:
1)Costs are based on conceptual design and order of magnitude unit cost estimates(+/-30%)as shown in the Process Water Treat-
ment System Optimization and Capital Improvement flan report. Cost estimates developed from a mixture of vendor quotes,recent
CES projects,engineering cost estimate guidelines,and profession experience. Full design is required to develop prior to construc-
tion.
CES will honor the quoted cost estimate for ninety (90) days from the date of this estimate and
thereafter reserves the right to make any necessary modifications.
City of Pasco CES
Process Water Treatment System
optimization and Improvement Plan-Phase 2
November 23,2011
Page 6
Assumptions and Limitations
The assumptions listed below and within the task descriptions above have been used to prepare
the proposed scope of work and cost estimate. Should differences from these assumptions be
required or encountered, CES will discuss the project cost implications with the City.
• Additional water quality data gathered in Phase 1, will be available prior to the start of
system design.
• Pilot testing of the potential treatment steps may be recommended to confirm actual per-
formance with existing water quality and site conditions. Cost to conduct the pilot testing
is not included in the scope of work.
• Engineering designs 1AU be prepared in anticipation of a public bidding process for system
construction.
Schedule
CES is prepared to begin work following completion of Phase 1 upon authorization. Assuming
authorization by July 1,2012,we will complete Tasks 1 - 3 by a target date of August 15, 2012.
Task 4 item will be completed by a target date of January 1, 2013. Another schedule will be
developed, if requested by the City.
Quality
CES is committed to providing quality products and services that consistently meet or exceed our
clients' expectations.
Safety
CES is committed to its safety mission: "A passion for world-class safety: excellence in execution,
employee commitment, innovation, exceptional communications.,.globally." CES employees will
apply the principles of this mission to ensure that safety is a priority for the duration of the project
and for everyone involved in its completion.
Compensation
The attached cost estimate is not a lump sum. Total estimated costs are based on available
information used to develop the scope of work and are a "good faith" estimate of charges that will
not be exceeded without additional authorization by the City. Actual billings will be based on a
time and materials basis per the Schedule of Fees attached. CES reserves the right to change our
Schedule of Fees on a yearly basis to reflect inflation and any increase in the cost of conducting
business. Project related outside services and other direct expenses, as well as the markup
associated with these items, are included in the overall cost of the project. If variables unknown at
this time become apparent during the course of performing the services outlined and it is shown
that additional staff time,materials, testing, etc.will he required; CES will suspend work until a
revised Work Authorization has been signed by the City authorizing CES to proceed. The cost
quotes contained in this proposal do not include sales or other applicable taxes. If it is determined
that taxes are required, thev will be in addition to cost quotes provided, All invoices net 30 days,
18% per annum.
City of Pasco CES
Process Water Treatment System
4p6 mization and Improvement Plan-Phase 2
November Z3,2011
Page 7
Terms and Conditions
All work under this authorization shall be in accordance with the City of Pasco Professional
Service Agreement provided by the City to CES. Work will commence upon receipt of this signed
document, or a City of Pasco Purchase Order listing CES proposal number P201123083 for the
amount of$114,900.00 at our Spokane field office. Please retain the copy of this proposal,with
attached CES Schedule of Fees, for your files.
Thank you for the opportunity to propose this scope of work and cost estimate. Please contact me
at(509) 921-0290 if you have any questions or comments, We look forward to working with you.
Sincerely,
CASCADE EARTH SCIENCES
Steven L. Venner,CPAg
Managing Soil Scientist 11
SLV/mab
Enc: Schedule of Fees/ PPN:P201123083
Doc: P20112M83 City Pasco Phase 2.docx
Authorization for CES to Provide Services
CES is authorized to provide the services outlined for the estimated cost of$114 9900.00.
I understand this is an estimate of the project costs and that the estimate will not be exceeded
without additional authorization. I also understand the scope of work, compensation,and terms
and conditions provided in the proposal.
Reviewed and
Authorized By:
Signature Date
Name/Title of Signer(please print or type)
Company(if other than Client)
CES
Cascade Earth Sciences
A vaknont If co~
SCHEDULE OF FEES
Professional Services*
• Administrative Support/ Field Technician $56/hour
• Administrative Coordinator $66/hour
• Technician /Drafter/Technical Editor $75/hour
• Technician 11/Engineering Designer $83/hour
• Environmental Scientist $88/hour
• Staff $91/hour
• Staff 11 $97/hour
• Project $102/hour
• Project II $110/hour
• Senior $120/hour
• Senior Il $127/hour
• Managing $137/hour
• Managing II $148/hour
• Principal $178/hour
• Expert testimony @ 150% of the above rates
*Professional staff including soil scientists, hydrologists, geologists, engineers, biologists, and contract
administrators
Reimbursables
Expenses associated with the performance of services, including but not limited to:
• CE�owned equipment, meals and lodging, and project materials as proposed
• Mileage Q$0.60/mile($0.70 for 1/2-ton vehicle or larger)
Outside Services
Subcontracted services and equipment rental as proposed.
Taxes
Sales and other applicable taxes will be charged when necessary to meet tax requirements,
Payment
Invoices are to be paid within 30 days from date of invoice.
Interest on late payments @ 18% per annum.
PROJECT EXPERIENCE AOF
CES currently provides wastewater land application consulting and design services on most of the large
land treatment systems regulated by the Washington Department of Ecology (Ecology) in Eastern and
Central Washington. In addition,we serve clients with land treatment systems in Oregon, Idaho,
California, Montana, Nebraska,Minnesota,New Mexico, Arizona, Texas,Tennessee, Louisiana,Georgia
and abroad in China.
CES provides complete process water treatment and reuse services to our clients. Services vary by
project but our suite of services include: pretreatment (screening, silt and grit removal,etc.),storage and
integrated lagoons, irrigation and cropping systems, soil moisture and irrigation scheduling, water reuse
monitoring and reporting, permit application and negotiation, system operations and training,
engineering design,construction management, groundwater hydrogeology and monitoring,and
comprehensive consulting associated with process water reuse systems.
Some key local project experiences are listed below, while additional experiences are available upon
request.
City of Pasco • Pasco, Washington
Contact: Reuel Klempel, Wastewater Plant Manager, (509) 545-3468
Since 1996, CES has assisted the City with permitting,monitoring,reporting, and technical support. Our
land application services have included Permit renewals and Permit limit increases, Engineering Reports,
five-year crop plans, Annual Farm Operations and Irrigation and Crop Management Plans, and technical
and regulatory support.
In 2010, CES conducted a comprehensive Land Treatment Site Capacity Assessment to define and
compare the hydraulic and nutrient loadings and agronomic capacity;and compare the agronomic
capacity to the Permit limits. In 2011,CES prepared a Process Water Treatment System Optimization
and Capital Improvement Plan. The Plan sets forth the strategies and recommendations to optimize the
treatment capability of the existing system, via pre-treatment and increasing the agronomic capacity, to
maximize additional process water loadings from the processors.
Pasco Processing Center, Port of Pasco, Washington
CES has served three of the four processors in the Pasco Processing Center with permitting and
regulatory support. Reser's Fine Foods Inc.- Rob Wiskerchen, Manager, (509)543-4939. Pasco
Processing, LLC- Robert Duenas, Environmental&Regulatory, (509)544.6730. Twin City Foods, Inc.-
Tom Foster, Pasco Division Manager, (509)546-0850.
ConAgra Foods(9 facilities)
Process Water Re-use Management and System Design
Paul Halberstadt,Sr. Director Environment (509) 736-2573
CES provides environmental consulting and engineering services for potato process water management
including design,permitting,and management of land treatment systems for Lamb-Weston facilities in
five states: Pasco,Connell, Richland,and Paterson Washington;Hermiston,Oregon; American Falls and
Twin Falls Idaho; Delhi, Louisiana; and Park Rapids,Minnesota. Process water treatment ranges from
constructed wetlands to direct land application to secondary treatment followed by land application.
Engineering design and construction management support has included surge ponds,large storage ponds,
irrigation systems,pipelines,pump stations,and associated infrastructure. CES has prepared irrigation
CESA vaMvKmt V coMPANY Cascade Earth Sciences--Project Experience
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PROJECT EXPERIENCE
and crop management plans; solids residual management plans;hydrogeologic evaluations and facility
engineering reports for this client. CES hydrogeologists have planned and supervised installation of
groundwater monitoring networks. CES has developed plans for monitoring groundwater, surface water,
residuals, soil properties, and crop harvest. CES also provides data management systems, and compliance
leak testing. Current CES activities at Lamb-Weston facilities include preparing annual reports and
management plans, providing consultations for permit negotiations,facilitating long-range process water
facilities planning and expansion,and substantial technical and engineering consulting. CES is proud to
have provided service to Lamb Weston since 1989.
Smith Frozen Foods-Weston, Oregon
Process Water Treatment, Management, and Reuse
Contract:Morris Hansen,Operations Manager, (541)566-3810
CES has assisted Smith Frozen since 1987 with their process water treatment, management,and reuse.
Services vary by year and have included design and construction management of their storage pond,
transmission pipeline and surge pond; training of environmental personnel; groundwater well
installation, monitoring, analysis, and compliance negotiation; soil,crop monitoring and annual report
preparation; pretreatment of brine water separate from the main process water stream; pond leak testing
and certification; Phase I and 11 ESA; permit negotiations; and consulting in support of the process
water reuse system.
Hermiston Foods - Hermiston, OR
Site Evaluation and Permitting, Operations PIanning and Consulting, Hydrogeology, and Reporting
Contact: Mr. Mark Steele - (503) 769-2101
Hermiston Foods has operated a land treatment system for its vegetable processing water for more than
20 years. CES prepared the original Site Characterization,Hydrogeologic Study and Operations
Management and Monitoring Plan in 1990 to support the permitting process. From mid-2009 to present,
CES has provided technical expertise and services for permitting a new land application site. The
services have included site soils evaluation, revisions to the Operations,Management and Monitoring
Plan (OM&M Plan), Hydrogeologic Study, Site Characterization Report, technical support for irrigation
design and operations,and testimony and support for public hearings and regulatory negotiations.
Oregon Department of Environmental Quality permit limits proved unworkable early in the startup
phase of the land treatment operations. CES has contributed directly to the development of practical
irrigation management and soil monitoring alternatives and moisture targets to create a workable
solution. CES has also provided consultations for reducing irrigation spray drift from pivot irrigation in
addition to groundwater data evaluation and reporting.
REC Silicon - Moses Lake, WA
Feasibility, Design, Construction Management, Hydrogeology, and Reporting
Contact: Mr. Greg Fillipi- (509) 766-9687
CES developed a feasibility study,cost estimate, and design for a land treatment system, and guided
REC Silicon through the permitting process. CES prepared the plans and specifications for construction
of a 60 MG storage pond for non-contact cooling water along with a pump station,pipeline, and
connection to an existing land application system. The pond is a two-cell storage facility that has a 100-
mil HDPE liner. The size of the pond necessitated Ecology Dam Safety approval,which CES obtained.
The design includes safety and maintenance features to facilitate cleaning. The pump station includes
A V3hTW dV COIrWAW Cascade Earth Sciences—Project Experience
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PROJECT EXPERIENCE
two sumps, a dry well, and a control building. Controls and valves, including backflow prevention,
allow use of either well water or process water on the irrigated property.
CES prepared the hydrogeologic study for this project and recently prepared both, an updated
hydrogeological study and the annual irrigation and crop management plan in support of the permit
requirements.
OB-3 Resource Management-Warden, WA
Feasibility, Design, Construction Management,Permitting, Hydrogeology, Monitoring, and Reporting
Contact: Mr.Jack Calder- (509) 349-2547
CES was retained by OB-3 Resource Management to investigate, design,permit, and construct an 8.5
mile long forced main pipeline, pump stations, and a 160 MG storage pond. CES provided support
during construction,and the storage pond leak detection plan. CES provided federal, state,and local
permitting support, which included two counties, Ecology Dam Safety, and the United States Bureau of
Reclamation.
The pipeline delivers 2.9 million gallons per day of wastewater from the City of Warden industrial
facility to a 4,000-acre land application treatment system. Pipeline construction required a jack and bore
crossing of the East Low Canal. Additionally,the pipeline required design and construction of two Iift
stations.
CES prepared the Operations and Maintenance Manual,and currently provides regulatory support
including preparation of the annual irrigation and crop management plan, and assistance with data
management for the monthly discharge monitoring reports required by the permit.
Port of Moses Lake-Moses Lake, WA
Feasibility,Design, Construction Management, Perrnittin& Hydrogeology,Monitoring, and Reporting
Contact: Mr. David Bailey- (509) 762-5363
CES was hired to create a feasibility study,cost estimate, and design for a non-contact wastewater land
treatment system, and to guide the Port of Moses Lake through the permitting process. The project has
provided the Port of Moses Lake with decade's worth of expansion, The collection pipeline, pump
station,and covered storage pond were designed by Montgomery-Watson as CES' subcontractor. CES
designed the irrigation pump station, delivery piping and irrigation system, and provided full-time
construction engineering review and oversight.
CES prepared the engineering report, permit application,hydrogeological assessment, and conducted
the site soil and groundwater monitoring and reporting for the first year of operations. Subsequently,
CES provided technical support to add another user, the United States Forest Service Tanker Base, and in
discussions with another potential user,Takata,who was not added.
The existing system consists of a mile long gravity sewer to collect process water,which is then pumped
5 miles to a 29 million gallon (MG) lagoon. A four-acre, floating polypropylene lagoon cover minimizes
bird attraction to the runways of the Grant County International Airport, The irrigation pump station
supplies the process water to two computer-controlled center pivots for irrigation of alfalfa and grain
crops. The project currently accommodates 250,000 gallons per minute and cost$3.8 million.
CESA vahnontV cowAM' Cascade Earth Sciences—Project Experience
C-N Resa.ca Improving LAM Page 3
PROJECT EXPERIENCE
J. R.'Simplat- Othello, WA
Reporting and Technical Support
Contact: Ms. Andrea Bongen- (509)331-3983
CES has served J.R. Simplot in Othello since about 1997 and has prepared all of their annual regulatory
reports since that time. CES also prepared their leak detection plan and provides crop and soil
management support on an as needed basis.
National Frozen Foods -Quincy, WA
Reporting and Technical Support
Contact: Mr. Bill Wagoner-(509) 787-1585
CES has served National Frozen Foods since about 1996 and has prepared all of their annual regulatory
reports since that time. CES has also prepared their Engineering Reports for land expansion, conducted
hydrogeological assessments, assisted with permit renewals, and regulatory and technical support. CBS
also designed and prepared plans and specifications for an upgrade of water delivery pumping and
piping for the land expansion.
J. R. Simplot- Moses lake, WA
Design, Permitting,Monitoring, and Reporting
Contact: Mr. Andy Erickson- (509) 793-1187
CES has served J.R.Simplot in Moses Lake since about 1997 and has prepared all of their annual
regulatory reports since that time. CES has also prepared three Engineering Reports for process water
treatment upgrades or adding new land,conducted hydrogeological assessments and annual statistical
analysis,assisted with permit renewals, and provided substantial technical assistance. CES developed
the Operations and Maintenance Manual for the entire system including the anaerobic digester and
storage pond as well as preparing the anaerobic digester Leak Detection Plan,
Basic American Foods - Moses Lake,WA
Design, Permitting,Monitorin& and Reporting
Contact: Mr. Mike Dodds - (509) 766-7876
CES has provided Basic American Foods with technical and regulatory support for many years including
Engineering Report work, groundwater modeling, vadose zone monitoring design, data analysis, and
regulatory intervention.
Norco Inc, Moses Lake-WA
Permitting and Technical Support
Contact: Mr. Ned Pontious- (208) 336-1643
Norco lnc retained CES to assist them with wastewater quality and quantity evaluation in support of
preparation their Engineering Report. Norco Inc supplies non-contact cooling water discharge to the
City of Moses Lake.
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PROJECT EXPERIENCE 40
Western Polymer-Moses Lake, WA
Retention Pond Design, Permitting, Technical Support, and Reporting
Contact: Ms. Bonnie White - (509) 765-1803
CES has provided Western Polymer with engineering and environmental services for many years
including: storage and settling pond designs, Engineering Reports in 1997 and 2003, regulatory annual
reporting since 2007, and permit and regulatory support on an as needed basis.
Boise Building Solutions-Kettle Falls, WA
Retention Pond Design and Ecology Dam Safety Approval
Contact: Ryan Lawrence - (509) 738-3249
CES provided plans and specifications for a two-cell 1 DPE lined pond with a capacity of 11 MG, and
two unlined stormwater ponds with capacities of 1.3 MG and 2.7 MG and a pump sump to be used in
emptying the lined pond. The lined pond is an off stream facility for containment and recycling of
process water. The unlined ponds are off-stream facilities with 13,000 cubic yards (cy)balanced
excavation and embankment fill. CES prepared documentation to obtain Ecology Dam Safety Office
approval in order to permit the lined pond.
The storage pond was constructed in an existing depression with a balanced cut and fill of
approximately 7,000 cy of sludge excavated and hauled away, and an earth excavation of 19,000 cy,
which was used as fill in the earthen dike. The storage pond design included a 60-mil HDPE liner,liner
ballast, ladders,and concrete inlet, outlet and overflow structures. A pump station was constructed and
enclosed in a building for potential winter operations. A chain link fence was included in the design to
prevent wildlife access to the pond.
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KEY PERSONNEL
CES is composed of highly qualified technical staff with specialized education and experience in the
earth sciences and engineering focused on practical cost effective process water treatment and reuse.
Traditional environmental consulting is dominated by engineers with construction or manufacturing
experience, Engineering practices alone are not always suitable for evaluating natural reuse and
treatment systems and identifying the most practical,sustainable and cost effective solution.
Following are biographical summaries of key personnel at CES who would manage, implement, and
present your project.
Steven Venner, CPAg
Managing 11 Scientist
Steven Venner has served the City of Pasco since 1996 with permitting,monitoring, reporting,and
technical support. He has provided technical assistance on the Engineering Report and Irrigation and
Crop Management Plans to support permit renewals and permit limit increase and gain regulatory
approvals on the existing system. Mr.Veneer fully understands the City's land treatment system and
regulatory needs. He conducted the Land Treatment Site Capacity Assessment in 2010 and was the
project manager for the Process Water Treatment System Optimization and Capital Improvement
Plan. He will continue to fill the role of project manager on this project and be the primary contact to the
City.
Mr.Venner has 15 years experience as a Soil Scientist/ Agronomist and 3 years experience as a Crop
Production Specialist. He has experience managing wastewater land application systems and meeting
regulatory requirements including permit development and renewals, NPDES permitting, and
development of Engineering Reports for industrial wastewater land application systems. Mr. Venner
has experience with wastewater farm management plans,irrigation and crop management plans for
food processors and municipalities, and soil investigations to assess site capacity for wastewater land
treatment. He has experience with land application of biosolids and by-products including field trial
design,agriculture registration, and evaluating beneficial re-use alternatives. His background includes
farming, field research, zero tillage farming systems,soil fertility monitoring,interpretation, and
recommendations.
Greg Thurman, PE
Managing Il Engineer
Greg Thurman participated in the Pasco Processing Center Process Water System Optimization and
Improvement Plan including pretreatment system sizing and configuration. He will continue to
participate on the engineering team during all phases of the system design providing process water
treatment direction. Greg will lead the Advanced Facultative Pond sizing and design as our expert in
this area and will provide technical review on other treatment components. Greg's deep experience with
primary and secondary treatment of food process water is an asset to the design, balancing effectiveness,
cost, and dependability.
Mr.Thurman is a registered Washington professional chemical engineer with over twenty years of
consulting and project management experience. Mr. Thurman has managed and consulted on engineering
and environmental projects,both nationally and internationally,from conception to completion,including;
primary and secondary wastewater treatment;land application of industrial and agricultural wastewater;
irrigation design;hazardous waste investigations and Temediations;lagoon design and management;
landfill design,operations and closures;hydrogeologic studies; and environmental
CESA vaknontV cowANY Cascade Earth Sciences-Key Personnel
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KEY PERSONNEL
assessments/mitigation projects. Mr.Thurman also has extensive experience in various pollution control
evaluations, feasibility studies,cost analysis,risk assessment,permitting, and project management. Mr.
Thurman's strong project management background, familiarity with government regulations, and
expertise in both traditional and non-traditional engineering techniques are an asset for completing a wide
range of projects,
Jay Williams, PE
Managing II Engineer
Jay Williams provided the conceptual civil engineering components and sizing for the City of Pasco
Process Water Treatment System Optimization and Capital Improvement Plan. Jay will continue to
serve as the senior civil engineer on this project.
Jay Williams is a civil engineer with 30 years experience in engineering and construction. Mr. Williams'
experience includes designing piping systems, water control structures, open channel water systems,
and retaining structures and irrigation systems. He has also managed projects in construction of
pipelines,canals, concrete and steel structures, and earthwork. This experience includes new
construction, rehabilitation, and retrofit projects. He has managed operations and directed operations
and maintenance plans. Mr.Williams has experience in working with regulatory agencies to obtain the
necessary permits to complete projects. He has reviewed numerous development plans for compliance
with local regulations.
Steel Maloney
Principal Hydrologist
Steel Maloney participated in the Pasco Processing Center system inspection and expansion options
assessment and will continue to participate in the design and construction phases. His experience with
many other industrial land based water reuse projects will be an asset to the project team. He will assist
with system configuration, treatment approach/options, project contract and budgeting, technical
review and public or user participation processes.
Mr. Maloney has over 25 years of experience as a hydrologist consulting on environmental and water
quality, reuse,supply and efficiency. He has worked on a variety of projects domestically and
internationally which have included numerous land applications of industrial residuals and process
water, municipal wastewater management,surface water hydrology,permit negotiation, and
management of public participation. Mr. Maloney is President of CES and oversees our key clients,
design-build projects, international business, as well as serving as a technical expert on water quality
management, water reuse, permit negotiations and public participation management.
Daniel Burgard, CPSS
Principal Soil Scientist
Dan Burgard has served the City of Pasco since 1996 with permitting, monitoring, reporting, technical
support, and principal oversight. Mr. Burgard fully understands the City's land treatment system and
regulatory needs.
Mr. Burgard has 23 years of experience as a soil scientist and 4 years of experience in manufacturing.
His background is wide ranging with experience focusing on beneficial uses of wastes and wastewater,
and soil chemistry. Mr. Burgard currently holds the position of Principal Soil Scientist with
responsibilities as,Technical Lead for Food Processing Business and corporate Soils Disciplines Lead.
CESA vakTK dif coMPANY Cascade Earth Sciences—Key Personnel
CocuwmV Raou tm Improving LAe Page 2
KEY PERSONNEL 40
Job responsibilities include project management, scientific staff supervision and mentoring, coordinating
the internal company continuing education training program, leading CES-sponsored land application
reuse workshops, developing business with food processors, and technical supervision/review of
waste/wastewater reuse projects and reports. Project areas have focused on land application reuse and
use of industrial and municipal wastes and wastewaters as resources for crop production. Projects have
included permitting, design, reporting,and consulting services for treatment and land treatment of
wastewaters from potato, fruit, vegetable, and meat processing, municipal wastewater treatment plants,
paper mills,power plants, and coal-bed methane producers. Expertise includes sludge management and
biosolids management. Key technical areas of expertise are treatment processes, soils,soil-plant-water
interactions, crop production,and irrigation.
Kristofor Snider
Staff H Engineer
Kristofor Snider has over five years of experience as an engineer. He has engineering experience in the
design of wastewater,drinking water, and stormwater projects. Mr. Snider has worked on all aspects of
the engineering process from project planning to project completion. He has designed pump stations,
wastewater pretreatment equipment, solids dewatering systems,mechanical aeration systems,
disinfection systems, and liquid storage tanks. Mr. Snider has conducted reviews of construction
submittals, requests for information,pay applications, and change order during the construction phase
of projects. In addition,he has also served as the onsite engineering representative during the
construction phase;where he was responsible for keeping daily logs of the contractors work and
verifying that the work was completed according to the contract documents.
Richard (Kyle) Billings
Engineering Technicia*Drafter
Mr. Billings has 11 years of experience in providing engineering technician / drafting services. He has
extensive use of AutoCAD Civil 3D 2008-2010,AutoTum 2006-2010,and AutoCAD R14-LDD 2008.
As CES' engineering technician/drafter,Mr. Billings is responsible for the drafting and engineering
support needs of the engineers and scientists at CES. It is his responsibility to ensure that the drafting is
produced in a timely manner that meets the requirements set forth in CES' Quality Assurance,Quality
Control standards.
Mr. Billings is accountable for all drafting duties from design of general site maps to volume calculations.
He is also responsible for construction documents and specifications, and assembly and layout of large
wastewater land application irrigation systems.
As a Designer/Drafter, Mr.Billings has been responsible for the design and drafting of diverse civil
engineering projects including roadways;site development;land development (subdivision layout,
platting, roads,utilities,record drawings,etc.); sewer collection;sewer treatment;storm water collection,
storm water treatment, water distribution;water storage and booster pump stations.
Mr. Billings has provided Designer/Drafting support for the following Key projects with key elements
that will support the City of Pasco:
• Construction of a new 5,500 gallon per minute boaster station and two 550,000 gallon water storage
reservoirs- City of College Place, Washington.
• Replacement of Pumps and Well House's No. 1 and No. 3-City of Walla Walla, Washington.
CESA V3bTN)W'V COMPANY Cascade Earth Sciences—Key Personnel
C ns&-,irg P&sou w Improving L& Page 3
KEY PERSONNEL 40
• Replacement of Rest Area Water System- WSDOT Indian John Hill Rest Area.
• Construction of a wastewater treatment facility- City of Plummer, Idaho.
• Design and relocation of process water lines,mine access roads, and main haul road- Fort Knox
Gold Mine, Fairbanks, Alaska.
CESA vart'KwKV coMPANY Cascade Earth Sciences—Key Personnel
Conemrg kaouacm %Uk Page 4
QUALITY AND SAFETY 40
Quality Assurance Statement
CES' quality assurance policy is simple--do the right thing the right way the first time and do it with no
surprises. CES' quality assurance methods reduce the risk to our customers by providing a high quality
product that is managed, produced and reviewed by the most appropriate personnel. CES' senior
project managers start each project by assigning the appropriate technical staff from our team of resource
scientists and engineers. We believe that most client needs are best achieved by an interdisciplinary
team of soil scientists, geologists, hydrologists, engineers, etc. Each technical area in CES is led by a
discipline manager who has extensive training and experience in their area. The discipline managers are
a resource to our clients and junior staff for technical leadership.
Technical and management skills are maintained at a high level through internal transfer meetings and
project management training classes. CES' scientists
and engineers also teach,attend and provide y :w
presentations at various industrial conferences and
workshops which allow us to stay current with new
environmental solutions and issues.
CES projects undergo a review and checklist
procedure to ensure a quality product is produced
and delivered. However,only you the client can be
the final judge of quality. Any product that you are
not satisfied with will be completed to your t• �� - c
satisfaction.
Ninety eight percent of our clients in 2009,2010, and
2011 indicate that they will recommend CES and use CES is committed to its safety mission: "A passion for world-
us again (documented by post-project client class safety:excellence in execution,employee commitment,
questionnaires). We cannot think of a better way to innovation exceptional communications...globally."
demonstrate our commitment to customer
satisfaction.
Commitment to Safety
The CES Team is committed to its safety mission: "A passion for world-class safety:excellence in execution,
employee commitment,innovation, and exceptional communications: globally." CES Team employees will
apply the principles of this mission to ensure that safety is a priority for the duration of the project and for
everyone involved in its completion.
CES has not had a recordable safety incident in 2010 and 2011. Additional we are registered with
1SNetworld and Browz global procurement companies that screen and evaluate safety,insurance,and
compliance records.CES maintains a high rating with both.
CES has a strong comunitment to safety during all aspects of a project and has developed and
implemented safety policies relating to our different work environments and situations. The policies are
available upon request, The CES field staff members are audited while on projects to ensure that safety
policies are practiced. Health and Safety Plans are developed and implemented for projects with
potential chemical exposures, or as appropriate.
CESA vaiTKMt9f CCMAPAW Cascade Earth Sciences—Quality and Safety
C----%P,e-- 1 Lily. Page 1
AGENDA REPORT
TO; City Counc' December 8, 2011
FROM: Gary Crutch Manager Workshop Mtg.: 12/12/11
Regular Mtg.: 12/19/11
SUBJECT: Tri-Cities Prep 'treet Agreements
1. REFERENCE(S):
1. Vicinity Map
2. Proposed Joint Development Agreement
3. Proposed Latecomer Satisfaction Agreement
11. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
12/12: Discussion
12/19: MOTION: I move to approve the Joint Development Agreement between Tri-
Cities Prep, Tapteal Il LLC and the City for development of a new
street connecting St. Thomas Drive and Chapel Hill Blvd and,
further, authorize the City Manager to sign the agreement.
12/19: MOTION: I move to approve the Latecomer Satisfaction Agreement with Aho
Construction I and, further, authorize the City Manager to sign the
agreement.
111. FISCAL IMPACT:
See below
IV. HISTORY AND FACTS BRIEF:
A) In 2008, the owners of commercial property (Tapteal) at the west end of St.
Thomas Drive (near Burden Blvd interchange) desired installation of a traffic
signal at the intersection of St. Thomas and Burden Blvd to accommodate
commercial development on their property. Council determined at the time such a
measure would cause more problems and staff recommended a new street
connecting St. Thomas with Chapel Hill Blvd as a better long-term solution. An
effort by Tapteal, the city and Tri-Cities Prep to arrange for such a new street
failed.
B) Recently, Tapteal and Tri-Cities Prep resurrected the suggestion for a new street
and approached city staff with a new proposal. After some negotiation, a
proposed agreement between the city, Tapteal and Tri-Cities Prep would result in
construction of a new street connecting St. Thomas and Chapel Hill Blvd based on
financial contributions by Tapteal and the city and land transactions by Tri-Cities
Prep. The agreement provides the following essential elements:
• Tapteal will donate certain land to Tri-Cities Prep;
• Tri-Cities Prep will give certain land (new street alignment) to Tapteal;
• Tapteal will construct new street and pay first $100,000 of construction cost;
• City will pay street construction costs in excess of$100,000, up to a city-cost
of$70,000;
• If street costs more than $170,000; city and Tapteal will share additional cost
equally up to $200,000;
• Upon completion, street will be deeded to City.
4(C)
Q Staff has arranged for an agreement with Aho Construction (required by 3-party
agreement) to terminate the Chapel Hill Blvd latecomer agreement whereby the
city will pay $35,000 to Aho in exchange for full satisfaction of the latecomer
agreement ($68,000 value).
V. DISCUSSION:
A) In essence, the combination of agreements will result in a new street connecting
St. Thomas and Chapel Hill Blvd, thus eliminating the need for signalization at
Broadmoor Blvd and St. Thomas (which will also avoid the safety conflicts and
inadequate stacking space on Burden Blvd). The cost exposure to the city under
the combination of agreements is between $85,000 and $120,000 (city engineer's
cost estimate for the new street is $170,000 under private contract).
B) Staff believes the combination of agreements represents a "win-win-win" whereby
each of the three parties receives most of what each needs and the community
realizes a safer street and traffic system in that vicinity than is offered by the
present circumstances. Accordingly, staff recommends Council approval of the
agreements.
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JOINT DEVELOPMENT AGREEMENT
THIS JOINT DEVELOPMENT AGREEMENT is entered into this day of
November, 2011, by and between Tri-Cities Prep Catholic High School, a nonprofit Washington
Corporation (hereinafter referred to as "Prep"), Tapteal II, LLC, a Washington Limited Liability
Company (hereinafter referred to as "Tapteal"), and the City of Pasco, Washington, a
Washington Municipal Corporation (hereinafter referred to as "City"), for the purpose of
extending street and utility improvements for the mutual benefit oftheir properties.
WHEREAS, Prep has real property in West Pasco developed as a High School located
south of St. Thomas Drive; and
WHEREAS, Tapteal owns property across St. Thomas Drive and property to the east of
Prep; and
WHEREAS, to accommodate needs of the citizens of the City of Pasco as well as the
long-term traffic patterns to serve both properties, an additional City street will be necessary
between St. Thomas Drive and Chapel Hill Boulevard as a part of the street system of the City;
and
WHEREAS, Tapteal desires to make a charitable donation of real property to Prep for its
High School campus, and an additional charitable donation of roadway improvements upon
property received from Prep and thereafter dedicated to the City with the improvement of vehicle
access to this area; and
WHEREAS, though Prep has no compelling need for a street to separate its campus, it
desires to cooperate with the parties to facilitate installation of a new street under the terms of
this agreement; and
WHEREAS, the parties desire, by the exchange of properties, dedication of right-of-
way, and the construction of a roadway to City standards to improve the circulation of traffic
providing a long-term benefit to the City and their respective properties by this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree as follows:
Y. PREP OBLIGATIONS. Prep shall:
A. On or before December 31, 2011, convey to Tapteal approximately ,71
acres of real property for street right-of-way more particularly described in Exhibit A,
attached hereto and incorporated hereinby this reference, and designated herein as City
Street in consideration of Tapteal's construction of a City street thereon.
Joint Development Agreement
12/09/11
B. From and after the date of this Agreement until dedication by a dedication
deed, grant access to Tapteal for inspection, surveying, and construction of a City street,
and infrastructure improvements, if required, together with a 10-foot temporary
construction easement on either side of that real property described in Exhibit A, which
temporary constriction easement shall expire upon acceptance of the roadway
improvements by the City.
C. Accept on or before December 31, 2011, by donation or gift, real property
from Tapteal consisting of approximately 3.18 acres more particularly described in
Exhibit B attached hereto and incorporated by this reference. For the purpose of this
Agreement,the value of said property is $
D. Timely submit an application for a binding site plan dividing that portion
of Prep's property for the proposed City street, as described as Exhibit A, suitable for
transfer to Tapteal for the construction of the roadway, and eventual dedication to the
City; and by such binding site plan, identify that portion of Prep's property of
approximately 2.47 acres lying west of the proposed City Street as a separate tax parcel.
E. Identify, prior to the close of design, the desired location of all curb cuts
and utility service stubs, if any, to service the property lying on either side of the
proposed roadway designated as City Street described as Exhibit A. The inclusion and
location of all curb cuts, utility stubs, and other street improvements shall be solely
within the discretion of the City.
F. Shall execute all deeds, documents, permits, and checklists necessary for
the permitting and conveyance of the property described above and the performance of
this Agreement.
2. TAPTEAL OBLIGATIONS. Tapteal shall:
A. On or before the 31St day of December, 2011, convey by gift, donation, or
otherwise, to Prep, that real property consisting of approximately 3.18 acres lying east of
the Prep property and more particularly described in Exhibit B, which is attached hereto
and incorporated by this reference.
B. Acquire by transfer that real property owned by Prep for the construction
of the proposed City Street as described in Exhibit A by appropriate deed, and as sole
consideration, the street improvements to City Street as described in 2C below.
Joint Development Agreement
12109/1 1
C. Construct to the City's established street standards, and in accordance with
the plans and specifications as provided and approved by the City, a City street including
curb and gutter, street lighting, stormwater, and such other improvements as required by
City standards. The east line of the street shall include a standard sidewalk, provided the
total cost of the street, including said sidewalk, does not exceed 5175,000. Construction
shall commence on or before the day of , 2012, and be completed
on or before the day of m , 2012.
D. The estimated costs of the roadway construction, excluding utilities, is one
hundred seventy thousand dollars (S170,000.00) which shall be paid "up front" by
Tapteal prior to acceptance by the City. Of the total amount paid for the roadway
construction, Tapteal shall pay the first $100,000, and the balance, if any, representing
that portion for the general benefit of the City, shall be paid by the City up to a total of
$70,000, within thirty (30) days of acceptance. In the event the actual reasonable costs
incurred for the construction of the City Street exceeds $170,000, the balance above
$170,000 shall be divided as follows: 59% to be paid by Tapteal, and 41% to be paid by
the City. In no event, however, shall the total project cost exceed $200,000 without the
prior written approval of both the City and Tapteal. Tapteal shall provide documentation
of the actual costs incurred for the construction of the City Street,
E. Upon acceptance of the improvements described above, Tapteal shall
convey, by dedication deed, City Street as described in Exhibit A to the City.
F. Shall execute all deeds, documents, permits, and checklists necessary for
the permitting and conveyance of the property described in Exhibit B as may be
necessary to accomplish the purpose of this Agreement.
3. CITY OBLIGATIONS. City shall:
A. Process in its usual course, Prep's application for a binding site plan
providing for the division of its property, including the creation of City Street as
described above in a timely manner,
B. Provide project design and engineering, resulting in project plans and
specifications for the construction of the proposed City Street. In addition, the City shall
determine the necessity of utility extensions and improvements, if any, as may be
necessary to serve these properties. The City shall, prior to the close of design, give due
consideration to the request of Prep for utility locations, curb cuts and other
improvements. The City shall provide notice to Prep of its request fourteen (14) days
prior to the close of design.
C. Provide inspection services during the course of construction.
Joint Development Agreement
12/09/11
D. The City shall pay the actual reasonable construction costs for the City
Street in excess of $100,000, up to a maximum of $70,000. In the event the actual
reasonable construction costs exceed $170,000, the City shall pay 41%, and Tapteal shall
pay 59% of those costs exceeding $170,000. However, in no event, shall the total. actual
reasonable construction costs exceed 5200,000 without the prior written consent of both
the City and Tapteal.
E. Upon completion of the improvements described above, accept by
dedication deed, the right-of-way of improvements to the real property described as
Exhibit A, accept ownership thereof, and maintenance and operation of the improvements
thereafter.
F. The City agrees to forebear traffic signalization requirement at the
intersection of City Street and Chapel Hill Boulevard as a condition for acceptance of the
street dedication. As a result of this Agreement, Tapteal and Prep shall not be required to
bear the costs for the responsibility for traffic signalization except as may be incident to
the increase traffic demands incident to the future development of their properties or
incident to the creation of a local improvement district affecting these properties.
G. The City shall, for its own part and on behalf of any party benefitted by
that Latecomer Agreement dated the 10th day of June, 2004, affecting Chapel Hill
Boulevard, secure a waiver of such fees to be paid by Prep incident to the connection of
the new City Street with Chapel Hill Boulevard and additional curb cuts on Chapel Hill
Boulevard for access to existing Prep facilities, and hold Prep hannless therefrom,
4. TERM. This Agreement shall be effective commencing on the 20th day of
December 2011, and all improvements, conveyances and obligations of the parties shall
be complete on or before November 30, 2013, or as earlier required as provided above.
S. AUTHORITY TO APPROVE AGREEMENT. The parties represent and
warrant that all steps necessary for the approval of this Agreement have been completed by:
A. Prep by action of its Board of Directors.
B. Tapteal by its Managing Member.
C. City by the Pasco City Council.
The officers signing below are authorized to do so and that the execution of this Joint
Development Agreement is valid and binding for all purposes.
Joint Development Agreement
12/09/11
6. DISPUTE RESOLUTION. In the event of a dispute between the parties regarding the
interpretation, breach or enforcement of this Agreement, the parties shall first meet in a good
faith effort to resolve the dispute by themselves or with the assistance of a mediator. The
remaining dispute shall be resolved by arbitration pursuant to RCW 7.04A, the Mandatory Rules
of Arbitration (MAR), with all parties waiving the right of a jury trial upon de novo review, with
the substantially prevailing party being awarded its reasonable attorney fees and costs against the
other,
7. GENERAL PROVISIONS.
A. This Joint Development Agreement constitutes the entire agreement between the
parties, and no prior oral or written agreement shall be valid, and any modifications of
this Agreement must be in writing signed by all parties.
B. Covenant running with the land. This Joint Development Agreement shall
constitute a covenant running with the land and shall be binding on the parties, and their
successors and assigns.
C. For the purpose of this Agreement, time is of the essence.
8. MUTUAL COOPERATON AND FURTHER AGREEMENTS. The parties agree to
cooperate in good faith, with regard to each and every aspect required for the completion of the
construction of the roadway which is the object of this Agreement, and the transfer of property,
and to further sign all documents, deeds and permits reasonably necessary to accomplish the
purposes of this Agreement.
DATED this day of - 2011., - _ i
CITY OF PASCO
Gary Crutchfield
City Manager
TRI-CITIES PREP
Steve Potter Gordon Beecher
President Chairman of Board of Directors
TAPTEAL II, LLC
Grant Young
Managing Partner
Joint Development Agreement
12/09/11
LATECOMER SATISFACTION AGREEMENT
THIS AGREEMENT is entered into this day of December, 2011, by and between
Aho Construction 1, Inc., a Washington Corporation, hereinafter referred to as "Aho", and the
City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as "City."
WHEREAS, Aho and the City have entered into a Latecomers Agreement for
reimbursement of the costs of the construction of Chapel Hill Boulevard by Agreement dated the
10h day of June, 2004, wherein Aho is entitled to reimbursement of the costs incurred by it for
the construction of a portion of Chapel Hill Boulevard; and
WHEREAS, the remaining reimbursement obligation due Aho under such Latecomers
Agreement is in the sum of$68,697; and
WHEREAS, the City desires to provide connection to Chapel Hill Boulevard of a new
City street and accommodate development of that remaining property subject to the Latecomers
Agreement; and
WHEREAS, Aho agrees to accept payment of $35,000 from the City and desires, as a
tax deductible charitable deduction pursuant to RCW 35.21.100, to waive the remaining
obligation of$33,697 to provide for the public purposes provided above.
NOW,THEREFORE, the parties agree as follows:
1. Upon receipt of payment by the City of$35,000, Aho does hereby waive the balance
of its reimbursement rights in the Latecomers Agreement dated June 10, 2004, in the
sum of$33,697 as a charitable donation to the City of Pasco, Washington, pursuant to
RCW 35.21.100.
2. The City accepts such waiver as a donation effective the day and year first written
above.
DATED this day of December, 2011.
AHO CONSTRUCTION 1, INC. CITY OF PASCO, WASHINGTON
Gary Crutchfield, City Manager
AGENDA REPORT
FOR: City Council December 6, 2011
TO: Gary Crutchfie I a.ger � Workshop Mtg.: 12/12/11
Rick White,
Community & conomic Development Director
FROM: Jeffrey B. Adams,Associate Planner
SUBJECT: Code Amendment: Rabbits and Hens in residential Zones
1. REFERENCES
1. Proposed Ordinance
2. Staff memo to the Planning Commission dated 11/17/11
3. Planning Commission Minutes dated 10/20/2011 and 11/17/11
4. Summary Table
11. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
12/12: Discussion
III. FISCAL IMPACT:
NONE
IV. HISTORY AND FACTS BRIEF:
A. On October 20`x`2011 the Planning Commission held a workshop to discuss an amendment to the
"R" (Residential) district regulations that to allow for the keeping of laying hens in residential
zones provided certain perfonnance requirements are met.
B. During the workshop the provision for the keeping of rabbits was added to the discussion, and
On November 17, 2011 the Planning Commission held a public hearing to consider the keeping
of both rabbits and laying hens in residential zones.
C. Following the workshop the Planning Commission recommended approval of the proposed code
amendments as contained in Reference#1.
D. City Council held a workshop meeting on 11/28/2011 where concerns were raised about the
interpretation of the word "hen" to mean fowl other than barnyard variety chicken hens, and
noise. Action was postponed to accommodate additional time for a determination on the
proposed amendment.
V. DISCUSSION:
A. Rabbits and chickens are already allowed in the RS-20, RS-12, and R-S-1 zones, but with a
minimum lot size of 22,000 square feet for up to 20 rabbits/hens,or a minimum of 32,000 square
feet for up to 40 rabbits/hens.
B. The proposed amendment would allow for up to three rabbits or three hens, along with up to
three cats or three dogs, or a combination not to exceed six total animals on lots less than 22,000
square feet in the RT, RS-20, RS-12, and R-S-1 zones,and in the R-1, R-1-A, R-1-A2, R-2,R-3,
and R-4 zones with a 5,000 square-foot minimum lot size, when occupied by a single-family
structure.
C. Development standards would require rabbit hutches or chicken coops and runs to be set back a
minimum of 10' from neighboring yards to prevent possible nuisances.
D. Roosters are prohibited on lots with less than 22,000 square feet.
E. The RT (Residential Transition) zone was also amended to address animals where PMC 25.20
was otherwise silent.
F. The term "hens"has been replaced by "chicken hens," in order to clarify that this provision does
not apply to other fowl,such as peacocks,geese or ducks.
G. Below is an existing section from the PMC (Title 9.60 Public Nuisances) that addresses noise
and odor concerns:
9.60.030 SPECIFIC NUISANCES. The following specific acts, omissions, places, conditions,
and things are declared to be nuisances:
(2)The keeping of rabbits, chickens, goats,pigs,bees, mules,horses, mink,dogs, cats,muskrats,
or any other animals within the city limits of the city that are of such nature as to create offensive
smells,noises and conditions in the vicinity in which they are kept,
4(d)
ORDINANCE NO.
AN ORDINANCE RELATING TO ZONING AND AMENDING PMC TITLE 25
DEALING WITH LAYING CHICKEN HENS IN RESIDENTIAL ZONING
DISTRICTS.
WHEREAS, cities have the responsibility to regulate and control the physical
development within their borders and ensure that the public health, safety and welfare are
maintained; and,
WHEREAS, the City of Pasco has zoning regulations that encourage orderly
growth and development of the city, and,
WHEREAS, the City Council has reviewed the Planning Commission's
recommendations, and has determined that to further the purpose of the comprehensive
planning and to maintain and protect the welfare of the community, it is necessary to
amend PMC Title 25, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
Section 1. That Section 25.20.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.20.030 PERMITTED ACCESSORY USES, The following uses shall be permitted as
accessory in the R-T district:
(1) Accessory dwellings;
(2) Home occupations (see definition in Section 25.12.220);
(3) Ranch and farm buildings appurtenant to an agricultural use and agricultural uses
limited as defined in Section 25.12.040 except that the keepinp, of animals shall be
permitted on parcels consisting of at least ten thousand (10.000) square feet over and
above an area ecival in size to 12,000 square feet set aside for the dwelling on the parcel:
and
(4)Uses incidental and customary to a permitted use. (Ord. 3354 Sec. 2, 1999.);
5 The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats
For lots with a minimum of 5,000 square feet but less than 22, l�0 square feet an
containing lv one single,-family dwellin .unit, the keeping of dogs. cats, rabbits, and
chicken hens rovided such number of animals does not exceed three dogs and/or three
cats and/or three rabbits and/or three chicken hens the total number of animals not to
exceed six; in all cases animals shall not be allowed to roam or flv to other properties
roosters are not allowed.
Page 1 of 11
Section 2. That Section 25.22,030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.22.030 PERMITTED ACCESSORY USES. The following uses shall be permitted as
accessory to a permitted use in the R-S-20 suburban district:
(1) Detached residential garages as defined in Section 25.12.200, provided they do not
exceed the height of 18 feet and are no larger than 1,200 square feet in area;
(2)Home occupations as defined in Section 25.12.220;
(3) Storage buildings not exceeding 480 square feet of gross floor area and fifteen feet in
height; provided no container storage, as defined in Section 25.12.430, shall be permitted.
For each additional 20,000 square feet of lot area, the gross floor area of storage sheds
can be increased by 400 square feet;
(4)Agricultural uses (limited), as defined in Section 25.12.040, except that the keeping of
animals shall be permitted on parcels consisting of ten thousand (10,000) square feet over
and above an area equal in size to 12,000 square feet set aside for the dwelling on the
parcel;
(5) One animal unit (as defined in Section 25,12.065) shall be allowed for each full ten
thousand square foot increment of land over and above an area equal in size to 12,000
square feet set aside for the dwelling on the same parcel; provided that all barns,
barnyards, chicken houses, or corrals shall be Iocated not less than twenty-five feet from
a public roadway and not less than ten feet from any adjoining or abutting property held
under separate ownership; and provided said number of chickens, fowl or rabbits does not
exceed 2 animal units;
(6) The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats;
(7) For lots with a minimum of 5,000 square feet but less than 22,000 square feet and
containing gontaining only one sirLgle-family dwelling unit. the k e in a of doiz.s, cats_ rabbi t8- and
chicken hens, provided such number of anima dges not exceed three dogs. and/ r ee
cats, and/or three rabbits and/or three chicken hens the total number of animals not to
exceed six; in all cases. animals shall not be allowed to roam or fly to other prop rties•
roosters are not allowed.
Section 3. That Section 25.22.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.22.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Twenty thousand
(20,000)square feet;
(2) Density: One dwelling unit per lot, except as provide in 25.22.030 (8);
(3) Maximum Lot Coverage: Forty (40)percent;
(4) Minimum Yard Setbacks;
(a) Front: Twenty-five(25) feet.
(b) Side: Ten(10) feet.
(c) Rear: Principal Building: Twenty-five (25) feet.
Page 2 of 11
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens, such as rabbit hutches and/or chicken coops, must be at least ten (10) feet from any
property line. Properry owners shall not allow such structures to become a nuisancg due
to noise or odor.
Section 4. That Section 25.24.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.24.030 PERMITTED ACCESSORY USES.The following uses shall be permitted as
accessory to a permitted use in the R-S-12 suburban district:
(1) Detached residential garages as defined in Section 25.12.200, provided they do not
exceed 18 feet in height and 1,200 square feet in area;
(2) Home occupations as defined in Section 25.12,220;
(3) Storage buildings not exceeding 260 square feet of gross floor area and fifteen feet in
height; provided no container storage, as defined in Section 25.12.430, shall be permitted.
For each additional 12,000 square feet of lot area the gross floor area of storage sheds can
be increased by 260 square feet;
(4) Agricultural uses (limited), as defused in Section 25.12.040, except that the keeping of
animals shall be permitted on parcels consisting of ten thousand (10,000) square feet over
and above an area equal in size to 12,000 square feet set aside for the dwelling on the
parcel;
(5) One animal unit (as defined in Section 25.12.065) shall be allowed for each full ten
thousand square foot increment of land over and above an area equal in size to 12,000
square feet set aside for the dwelling on the same parcel; provided that all barns,
barnyards, chicken houses, or corrals shall be located not less than twenty-five feet from
a public roadway and not less than ten feet from any adjoining or abutting property held
under separate ownership; and provided said number of chickens, fowl or rabbits does not
exceed 2 animal units;
(6) The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats;
(7) For lots with a minimum of 5,000 square feet but less than 22.000 square feet and
contaiping only one single-family dwel—ling unit the keeping of do,&s,tcgts rabbits and
chicken hens. urovided such number of animals does not exceed three does. and/or three
cats and/or three rabbits and/or three chicken hens the total number of animals not to
exceed six, in all cases animals shall not be allowed to roam or fly to other vroverlie&
roosters are not allowed.
Section 5. That Section 25.24.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.24.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Twelve thousand
(12,000) square feet;
Page 3 of 11
(2) Density: One dwelling unit per lot, except as provide in 25.24.030 (S);
(3) Maximum Lot Coverage: Forty (40)percent;
(4) Minimum Yard Setbacks:
(a)Front: Twenty-five(25) feet.
(b) Side: Ten (10)feet.
(c)Rear: Principal Building: Twenty-five (25)feet.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens, such,_as ra�bjt,hN ches and/or chicken coons must bg at least ten. i 101 feet from any
pro eriv line. Property owners shall n.Qt allgw &c h sJMQtures to become a nuisance due
to noise or odor.
Section 6, That Section 25.26.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.26,030 PERMITTED ACCESSORY USES. The following uses shall be permitted as
accessory to a permitted use in the R-S-I suburban district:
(1) Detached residential garages as defined in Section 25.12.200, provided they do not
exceed 15 feet in height and 1,000 square feet in area; except on Iots that are 12,000
square feet or more the height may be increased by 3 feet and the area may increase by
200 square feet;
(2) Home occupations as defined in Section 25.12.220;
(3) Storage buildings not exceeding 200 square feet of gross floor area and fifteen feet in
height; provided no container storage, as defined in Section 25.12.430, will be permitted;
(4) Agricultural uses (Iimited), as defined in Section 25.12.040, except that the keeping of
animals shall be permitted on parcels consisting of ten thousand (10,000) square feet over
and above an area equal in size to 12,000 square feet set aside for the dwelling on the
parcel;
(5) One animal unit (as defined in Section 25.12.065) shall be allowed for each full ten
thousand square foot increment of Iand over and above an area equal in size to 12,000
square feet set aside for the dwelling on the same parcel, provided that all barns,
barnyards, chicken houses, or corrals shall be located not less than twenty-five feet from
a public roadway and not less than ten feet from any adjoining or abutting property held
under separate ownership, and provided said number of chickens, fowl or rabbits does not
exceed 2 animal units;
(6) The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats;
7 For lots with a minimum of 5,000 square feet but less than 22,000 square feet and
containing only one single-family a in of dog§. cats. rabbits,. and
chicken hens Provided such number of animals does not exceed three dos and/or three
Page 4of11
cats. and/or three rabbits and/or three chicken hens, the total number of animals not to
exceed six: in all cases, animals shall not be allowed to roam or fly to other-properties;
roosters are not allowed.
Section 7. That Section 25.26.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.26.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Ten thousand
(10,000) square feet;
(2) Density: One dwelling unit per lot, except as provided in 25.26.030(8);
(3) Maximum Lot Coverage: Forty (40) percent;
(4) Minimum Yard Setbacks:
(a) Front: Twenty(20) feet.
(b) Side: Principal building: Ten (10) feet.
Accessory structures: Five feet, provided the accessory structure is located behind the
rear building line.
(c) Rear: Principal Building: Equal to the height of the dwelling.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens such as rabbit hutches and/or chicken coovs, must be at least ten (10) feet from an
propexry line. Property owners shall not allow such structures to become a nuisance due
to noise or odor.
Section 8. That Section 25.28.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.28.030 PERMITTED ACCESSORY USES. The following uses shall be permitted as
accessory to a permitted use in the R-1 low density residential district:
(1) Detached residential garages as defined in Section 25.12.200, provided they do not
exceed 15 feet in height and 1,000 square feet in area; except on lots that are 12,000
square feet or more the height may be increased by 3 feet and the area may increase by
200 square feet;
(2)Home occupations, as defined by Section 25.12.220;
(3) Storage buildings not exceeding two hundred square feet of gross floor area and
fifteen feet in height; provided no container storage, as defined in Section 25.12.430,
shall be permitted;
(4) The renting of rooms for lodging purposes only; provided, however, such
accommodations shall not exceed two persons in a single-family dwelling. One off-street
parking space, per roomer, must be provided in addition to the requirement set forth
under Section 25.78.170(5);
Page 5 of 11
(5) The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats;
(6) On lots with a minimum of 5.000 square feet and containing only one single-family
dwelling unit, the keeping of dos cats, rabbits and chicken hens:provided such number
of animals does not exceed three doss, and/or three cats. and/or three rabbits and/or three
chicken hens, the total number of animals not to exceed six; in all cases. animals shall not
be allowed to roam or fly to other mopertic&roosters are not allowed.
Section 9. That Section 25.28.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.28.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Seven thousand two
hundred (7,200) square feet
(2) Density: One dwelling unit per lot, except as provide in 25.28.030 (7);
(3) Maximum Lot Coverage: Forty(40) percent;
(4) Minimum Yard Setbacks:
(a) Front: Twenty (20) feet,
(b) Side: Five (5) feet.
(c) Rear: Principal Building: Equal to the height of the dwelling.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens, such as rabbit hutches and/or chicken coops. must be at least ten(10) feet from any
Lop rty lines Prouerty_owners shall not allow such structures to become a nuisance due
to noise or odor.
Section 10. That Section 25.30.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.30.030 PERMITTED ACCESSORY USES. The following uses shall be permitted as
accessory to a permitted use in the R-1-A District;
(1) Detached residential garages, as defined in Section 25.12.200, provided they do not
exceed fifteen feet in height and 1,000 square feet in area;
(2) Home occupations, as defined in Section 25.12.220;
(3) Storage buildings not exceeding two hundred square feet of gross floor area and
fifteen feet in height; provided no container storage, as define in Section 25.12.430, shall
be permitted,
(4) The renting of rooms for lodging purposes only; provided, however, such
accommodations shall not exceed two persons in a single-family dwelling. One off-street
parking space, per roomer, must be provided in addition to the requirement set forth
under Section 25-78.170(5);
Page 6 of 11
(5)The keeping of dogs and cats, provided such number of animals does not exceed three
dogs and three cats;
(6) On lots with a minimum of 5,000 square feet and containinp- only one single-family
dwelling; unit. the keeping of f dogs, cats, rabbits, anal chickens for pgrsonal use..pLovided
such number of animals does not exceed three dogs and/or three cats, and/or three rabbits,
and/or three chicken hens, the total number of animals not to exceed six; in all cases,
animals shall not be allowed to roam or fly to other properties; roosters are not allowed;
Section 11. That Section 25,30.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.30.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Seven thousand two
hundred(7,200) square feet;
(2) Density: One dwelling unit per lot, except as provided in 25,30.030 (7);
(3) Maximum Lot Coverage: Forty (40)percent;
(4) Minimum Yard Setbacks:
(a)Front: Twenty(20) feet.
(b) Side: Five(5) feet
(c)Rear: Principal Building: Equal to the height of the dwelling, but not less than ten (10)
feet.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens such as rabbit hutches and/or chicken coos must be at least ten 10 feet from an
property line, Propet-ty owners shall not allow such structures to become a nuance due
to noise or odor.
Section 12. That Section 25.32.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.32.030 PERMITTED ACCESSORY USES, The following uses shall be permitted as
accessory to a permitted use in the R-1 A2 District;
(1) Detached residential garages, as defined in Section 25.12.200, provided they do not
exceed fifteen feet in height and 1,000 square feet in area;
(2) Home occupations, as defined in Section 25.12.220;
(3) Storage buildings not exceeding two hundred square feet of gross floor area and
fifteen feet in height, provided no container storage, as define in Section 25.12.430, shall
be permitted;
(4) The renting of rooms for lodging purposes only, provided, however, such
accommodations shall not exceed two persons in a single-family dwelling. One off-street
parking space, per roomer, must be provided in addition to the requirement set forth
under Section 25.78.170(5);
Page 7 of 11
(5) The keeping of dogs and cats, provided such number of animals does not exceed three
dogs and three cats,
6 On lots with a minimum of 5,000 square feet and containing onl • one single-family
dweliin„ unit, the keeping of dogs, and cats. rabbits, and chickens for personal use,
provided such number of animals does not exceed three dogs and/or three eats, and/or
three rabbits, and/or three chicken hens, the total number of animals not to exceed six; in
all cases, animals shall not be allowed to roam or fly to other properties; roosters are not
allowed:
Section 13. That Section 25.32.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.32.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Seven thousand two
hundred (7,200) square feet;
(2) Density: One dwelling unit per lot, except as provided in 25.32.030 (7);
(3)Maximum Lot Coverage: Forty (40)percent;
(4) Minimum Yard Setbacks:
(a) Front: Twenty (20) feet.
(b) Side: Five(5) feet.
(c) Rear: Principal Building: Equal to the height of the dwelling; but not less than ten(10)
feet,
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens, such as rabbit hutches and/or chicken coops, must be at least ten (10) feet from any
oropeny line. Pro erty owners shall not allow such structures to become a nuisance due
to noise or odor.
Section 14. That Section 25.34.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.34.030 PERMITTED ACCESSORY USES. The following uses shall be permitted as
accessory to a permitted use in the R-2 district:
(1) Detached single family residential garages, as defined in Section 25.12.200, provided
they do not exceed fifteen feet in height and 1,000 square feet in area;
(2) Home occupations as defined by Section 25.12.220;
(3) Storage buildings not exceeding two hundred square feet of gross floor area and
fifteen feet in height; provided no container storage, as defined in Section 25.12.434,
shall be permitted;
(4) The keeping of dogs and cats provided such number of animals does not exceed tlu•ee
dogs and three cats;
Page 8 of 11
5 n lots with a minimum of 5,000 square feet and contain 'n, only one single-family
dwelling t th ev' u (o three Llb_ its or tltne chicken hens for pgrsonal use
provided the total number of animals (including dogs, cats, rabbits, and chicken hens)
does not exceed six; in all cases, animals shall not be allowed to roam or fly to other
properties; roosters are not allowed;
Section 15. That Section 25.34.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.34,050 DEVELOPMENT STANDARDS. (1)Minimum lot area: Five thousand
(5,000) square feet;
(2) Density: One dwelling per 5,000 square feet of lot area except as provided in
25.34.030 (7);
(3) Maximum Lot Coverage: Forty (40) percent;
(4) Minimum Yard Setbacks:
(a) Front: Twenty (20) feet.
(b) Side: Five(5) feet.
(c) Rear: Principal Building: Equal to the height of the dwelling.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens, such as rabbit hutches and/or chicken coops, must be at least ten (10) feet from any
prop= line. Property owners shall not allow such structures to become a nuisance_ due_
to noise or odor.
Section 16. That Section 25.36.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.36.030 PERMITTED ACCESSORY USES, The following uses shall be permitted as
accessory to a permitted used in the R-3 district:
(1) Detached single family residential garages, as defined in Section 25.12.200, provided
they do not exceed fifteen feet in height and 1,000 square feet in area;
(2) Home occupations as defined by Section 25.12.220;
(3) Storage buildings not exceeding two hundred square feet of gross floor area and
fifteen feet in height; provided no container storage, as defined in Section 25.12.430,
shall be permitted;
(4) The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats;
5 On lots with a minimum of 5,000 square feet and containing only one single-family
wel irLg unit the keei3ing of u) to ee rabbits or three chicken hens for24LL9naI use
provided the total number of animals (including dogs, cats, rabbits, and chicken hens)
does not exceed six: in all cases, animals shall not be allowed to roam or fly to other
properties:roosters are not allowed:
Page 9 of 11
Section 17. That Section 25.36.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.36.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Five thousand
(5,000) square feet;
(2) Density: One dwelling unit per 5,000 square feet of lot area for single family
dwellings and 3,000 square feet of lot area for multiple family dwellings;
(3) Maximum Lot Coverage: Sixty(60)percent;
(4) Minimum Yard Setbacks:
(a) Front: Twenty(20) feet.
(b) Side: Five(5) feet,
(c)Rear: Principal Building: Equal to the height of the dwelling.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens, such as rabbit hutches and/or chicken coops, must be at least ten (10) feet from anv
prow line. Property owners shall not allow such structures to become a nuisance dug
to noise or odor.
Section 18. That Section 25.38.030 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.38.030 PERMITTED ACCESSORY USES. The following uses shall be permitted as
accessory to a permitted use in the R-4 district:
(1) Detached single family residential garages, as defined in Section 25.12.200, provided
they do not exceed fifteen feet in height and 1,000 square feet in area;
(2) Home occupations as defined by Section 25.12.220;
(3) Storage buildings not exceeding two hundred square feet of gross floor area and
fifteen feet in height; provided no container storage, as defined in Section 25.12.430,
shall be permitted;
(4) The keeping of dogs and cats provided such number of animals does not exceed three
dogs and three cats;
5 On lots with a minimum of 5,000 square feet and containing only one single-family
dwelling unit the keeping of 2p to three rabbits or three chicken hens for personal use,
provided the total number of animals (incIudinQ dogs, cats, rabbits, and chicken hens)
does not exceed six, in all cases, animals shall not be allowed to roam or fly to other
properties; roosters are not allowed,
Section 19, That Section 25.38.050 of the Pasco Municipal Code be and the same is
hereby amended to read as follows:
25.38.050 DEVELOPMENT STANDARDS. (1) Minimum lot area: Five thousand
(5,000) square feet;
Page 10 of 11
(2) Density: One dwelling unit per 5,000 square feet of lot area for single family
dwellings and 1,500 square feet of lot area for multiple family dwellings;
(3)Lot Coverage: Sixty (60) percent;
(4) Minimum Yard Setbacks:
(a) Front: Twenty (20) feet.
(b) Side: Five(5) feet.
(c) Rear: Principal Building: Equal to the height of the dwelling.
Accessory structures. Accessory structures adjacent an alley may be placed on the alley
line provided there are no openings in the wall parallel to the alley. Garages with vehicle
doors parallel to an alley shall be setback from the alley twenty (20) feet. Where there is
no alley, the set back shall be five (5) feet. Structures related to rabbits and/or chicken
hens. Such as rabbi} hutc gs an gI_ iWckgn c,Qoosi must be at least ten (10) feet from any
property line, Pro erty owngs shall not allow such t to-become a nuisance due
to noise or odor.
Section 20. This ordinance shall be in full force and effect five clays after
passage and publication as required by law.
PASSED by the City Council of the City of Pasco, at its regular meeting of
, 2011.
Matt Watkins
Mayor
ATTEST: APPROVED AS TO FORM:
Debra L. Clark Leland B. Kerr
City Clerk City Attorney
Page 11 of 11
MEMORANDUM
November 17, 2011
TO: Planning Commission
FROM: Jeffrey B. Adams, Associate Planner
RE: Hens in Residential Zones
Issue statement
The City of Pasco recently received a letter requesting the legalization of "small
numbers of hens . . . in residential zones in Pasco." This letter reflects the
sentiment of a growing number of Pasco residents that the Pasco Municipal
code should be modified to allow for laying hens in residential zones. As noted
in Exhibit 1, the inclusion of rabbits has also been suggested.
What is Currently Allowed
The Pasco Municipal Code (PMC) allows for "the keeping of farm animals upon
the premises . . . for a personal ii.-;e only . . ." in the RS-20, RS-12, and R-S-1
zones (PMC 25.12.040). No commercial animal husbandry operations are
allowed. Chickens are not allowed in any other zones in the City.
This provision for "the keeping of farm animals upon the premises . . . for a
personal use only . . ." is allowed as long as the lot in question has at least "ten
thousand (10,000) square feet over and above an area equal in size to 12,000
square feet set aside for the dwelling on the parcel." (See PMC 25.22.030;
25.24.030; 25.26.030). Thus farm animals are only allowed on parcels of
22,000 square feet (1/2 acre) or larger.
Furthermore, "for each full ten thousand square foot increment of land over
and above [the area) set aside for the dwellings' the owner may have one animal
unit. An "animal unit" is defined as "any one of the following: steer, cow, milk
cow, horse, mule/donkey, three goats, three sheep, three pigs, twenty chickens,
twenty fowl or twenty rabbits" (See PMC 25.12.065). A cap of "2 animal units"
is placed on the keeping of "chickens, fowl or rabbits" in these zones.
Finally, chicken houses must be located at least ten feet from any adjoining or
abutting property held under separate ownership and twenty-five feet from a
public roadway (See PMC 25.22.030; 25.24.030; 25.26.030).
In summary, if a property owner has at least 22,000 square feet of land in an
R-S-1, RS-12, or RS-20 zone, they may keep up to 20 chickens for personal
use; a person may keep up to 40 chickens if the lot has 32,000 or more square
feet. All coops and chicken-related structures need to be positioned at least 10
feet from the side and rear property lines and 25 feet from any public road.
Pros/Cons of Keeping Small Numbers of Hens
Pros, (as put forth, in the request letter):
Hens provide healthier eggs.
Page 1 of 5
Their eggs supplement the diets of low-income families.
Hens eat waste products like bugs, weeds, and kitchen scraps, changing
trash into food.
Chicken droppings provide valuable, odorless (sic) fertilizer that is high in
nitrogen, preventing the need for petroleum-based commercial fertilizer.
Chickens are fun, friendly pets.
Chickens have educational value for children about where food like eggs
comes from.
Chickens are much more suited to a smaller area (such as a backyard)
than a dog or a cat because they are smaller and don't have the need to
run and roam such as dogs and cats.
They contribute to sustainability and self-sufficiency.
Cons (gathered from various sources)
Both rabbit and chicken-raising requires personal responsibility.
Chicken eggs must be collected daily.
Both rabbits and chickens create a great deal of waste.
Rabbit and chicken waste creates a less than pleasing aroma for
neighborhoods.
Rabbit and chicken food may encourage rats and raccoons.
Chickens make unwanted noise.
Some yards are not large enough.
Chickens can quickly denude vegetation in a run or pen, causing blowing
dust concerns.
Chickens can fly into neighboring yards.
Rabbits may burrow into neighboring yards.
Code enforcement may increase.
On the Pros and Cons
Healthier eggs: Whether homegrown eggs are healthier is not necessarily a
zoning issue, and thus need not be dealt with here.
Cost effectiveness: As with perceived nutritional value of eggs, home poultry-
keeping economics is not a zoning issue, and will not be addressed.
Pest Control: Chickens do eat bugs, and chicken byproducts are typically not as
toxic as sprays.
Weed Control: Weed control is an important consideration for code
enforcement, but as noted above, chickens eat vegetation of all kinds. However,
Page 2 of 5
chickens given only a small patch of yard can quickly denude that area of
vegetation, thus creating a blowing dust nuisance.
Recycling Table Scraps: Chickens can efficiently convert most "wet" garbage,
such as lawn clippings, and fruit and vegetable scraps, into manure. Recycling
is an element of the City of Pasco's Comprehensive Plan
"Odorless" Manure: Rabbit and chicken manure is not unscented.
Accumulations of rabbit or chicken waste, like any animal waste, will create a
nuisance for neighbors. But this is not unlike dog or cat manure control;
owners are equally obligated to prevent pet waste buildup, regardless of the
type of animal. However, unlike dog or cat manure, rabbit and chicken manure
is generally safe for food crops. As well, chickens given adequate space to roam,
and kept off of impermeable surfaces, will work the manure into the dirt with
their scratching behaviors, thus fertilizing and improving soil quality.
Pets: Both rabbits and chickens, like many animals can be treated as
domesticated pets. All pets require a certain level of personal responsibility for
their care. For rabbits and hens this includes feeding, watering, protecting from
predators (skunks, raccoons, and neighborhood dogs), and for chickens, daily
egg collection. Most rabbits and hens are docile, but like any other "pet" they
(especially "broody" hens), can become unruly and would require special
handling. The care of an unruly rabbit or chicken would not be more onerous
than that required for a troublesome dog or cat, except that chickens have the
added feature of limited flight capability (Roosters would not be allowed under
this code amendment). Generally, rabbits and hens are fairly quiet, and can
usually be favorably compared to a dog or cat in terms of noise output.
Educational Value: The educational value of chickens may hP seen as
contributing to community self-reliance, as children can be instructed to some
degree on animal husbandry, food production, and farm economics.
Smaller Area: It may be true that chickens require a smaller area than a cat or
dog of similar size. However such small confinement may defeat the "free-
range" component of the "healthier chickens/better eggs" argument.
Sustainability/Self-sufficiency: As noted above, chickens fed and housed in a
certain way can contribute to sustainable agriculture/self sufficiency and
perhaps produce healthier eggs. However chicken-raising at home as opposed
to on a commercial ranch is not per se a guarantee of either.
Possible Implementation Guidelines
These code revisions would pertain only to residential zones (Rabbits and
chickens are already allowed in the RS-20, RS-12, and R-S-1 zones, but only
with a minimum lot size of 22,000 square feet).
The PMC could be revised to allow for up to three rabbits or three hens (no
roosters) along with up to three cats or three dogs, or a combination not to
exceed six total animals (see attached Draft Ordinance).
Page 3 of 5
Because much of the demand for rabbits and laying hens occurs in the
smaller-lot R-2, R-3, and R-4 zones, the code should be adapted for these
zones in such a way as to allow rabbits or hens only as long as yard space is
sufficient for rabbits or hens, hutches/coops, and runs. A 5,000 square-foot
minimum yard size is suggested (see attached Draft Ordinance).
Finally, development standards should reflect rules for placement of rabbit
hutches or chicken coops and runs to keep them away from neighboring yards
and to preempt a possible nuisance (see attached Draft Ordinance).
Findings of Fact
1. Rabbits and chickens are currently allowed only in the RS-20, RS-12,
and R-S-1 zones in the City.
2. The Pasco Municipal Code (PMC) allows for the keeping of up to 20
rabbits and chickens in the RS-20, RS-12, and R-S-1 zones for personal
use, provided there is a minimum lot size of 22,000 square feet (PMC
25.12.040) and allows for the keeping of up to 40 rabbits and chickens in
the RS-20, RS-12, and R-S-1 zones for personal use, provided there is a
minimum lot size of 32,000 square feet (PMC 25.12.040).
3. Butchering of animals in residential districts is prohibited (PMC
9.60.030(13).
4. PMC Title 25 currently allows up to 3 dogs and three cats, not to exceed
6 animals total, in all residential zones.
5. Rabbit hutches and chicken houses in the RS-20, RS-12, and R-S-1
zones must be located at least ten feet from any adjoining or abutting
property held under separate ownership and twenty-five feet from a.
public roadway.
6. A request has been received to consider an amendment to the Pasco
Municipal Code to allow the keeping of hens and rabbits in residential
districts.
7. The Planning Commission has researched and considered the request
and has recommended that such an amendment be approved with
appropriate conditions.
Recommendation
MOTION: I move the Planning Commission adopt the Findings of Fact as
contained in the November 17, 2011 staff memo on Code
Amendments for PMC Section 25.
MOTION: I move the Planning Commission recommend the City Council
adopt the proposed Code Amendments modifying PMC Chapters
25.20, 25.22, 25.24, 25.26, 25.28, 25.30, 25.32, 25.34, 25.36, and
25.38 as indicated on the attached Ordinance to include provisions
Page 4 of 5
for the keeping of rabbits and laying hens in residential ("R")
zoning Districts.
Page 5 of 5
REGULAR MEETING October 20, 2011
PLANNING COMMISSION MINUTES
A. Workshop Hens in Residential "R" Zones
Chairman Cruz read the master file number and asked for comments from staff.
Rick White, Community and Economic Development Director explained the City
received a written request for a code amendment to allow the keeping of hens in
residential zones subject to certain conditions. The suburban zones (RS-20, RS-12, and
RS-1) in Pasco allow the keeping of hens. There is a size limitation on the lots. None of
the other residential zones allow the keeping of hens or rabbits. Mr. White reviewed
details of the proposed code amendment, such as, quantity of hens, lot sizes, and
housing of the hens. The code amendment would only allow the keeping of three hens
on single family lots that do not now qualify for the keeping of hens. If personal
responsibility is exercised, staff doesn't see a large difference between keeping cats,
dogs, or other small animals provided conditions were met.
Commissioner Lukins asked what the other cities in the area (Kennewick and Richland)
were doing in regards to the codes on keeping of hens.
Mr. White answered that they are doing the same thing.
Amelia Larson, 8615 Studebaker Drive, stated Mr. White's report was accurate. As for
the noise issue, hens are not louder than any other pet, and keeping them away from
fences is important, as well as being a responsible owner. Hens take up less space than
dogs or many other animals.
Chairman Cruz asked about the proposed number of hens to be allowed. Ms. Larson
said three would be about right, perhaps five but that could be pushing it.
Chris Baugh, 5812 Curlew Lane, spoke in support of the proposal of the code
amendment. He personally has 12 hens (Mr. Baugh lives in a County R-S-20 Zone) and
it has taught his children a lot and has provided their family with food.
Mr. White explained the proposed code amendment item would be brought back for a
formal hearing and a staff report.
-1_-
REGULAR MEETING November 17, 2011
PLANNING COMMISSION MINUTES
PUBLIC HEARINGS:
A. Code Amendment Rabbits and Hens in Residential "R" Zones (MF# CA
2011-0051
Chairman Cruz read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, explained that the Commission
discussed this item at the October 20, 2011 workshop, The issue concerns a recent interest
among the community in establishing for personal use, the keeping of a small number of
hens or rabbits in residential zones with appropriate safeguards. Staff did thorough
research of the issue to come up with a proposed code amendment that would affect the
largest of the residential zones all the ,ray down to the medium density zones (RS-20 to R-4
Zoning Districts) with some qualifying conditions. The ability to have no more than six small
animals, which can include hens and/or rabbits, would be based on the proposed code
amendment provisions explained in the November 17, 2011 packet. Staff research
concluded that the appropriate personal responsibility for the keeping of hens and rabbits
isn't any different than the keeping of dogs and cats.
Mr. White corrected a comment made at the October 20, 2011 workshop about the City of
Kennewick's code. At that meeting it was explained that Kennewick adopted a code similar
to the one being proposed. However Kennewick changed its code three years ago,
prohibiting hens in all districts except for their equivalent of the City of Pasco's RS zoning
districts. The City of Richland allows up to six hens and doesn't limit the keeping of small
animals to three of one kind; a person can keep up to six at one time (i.e. hens, cats, dogs).
Mr. White explained that the wording in the ordinance is the same for all of the zoning
districts, with a slight change in wording for the RS Districts because they already allow the
keeping of up to 40 hens, depending on lot size.
Chairman Cruz asked of clarification between the proposed code and the Kennewick code
relating to lot size.
Mr. White stated Kennewick used to allow up to three hens in any zoning district. Now hens
are only permitted in Suburban Zones on lots ,5 acres or larger.
Gabriel Larson, 8615 Studebaker Drive, supported the code amendment because people
could learn the responsibility of taking care of an animal. He said that hens are not any
louder than a dog or a cat.
Amelia Larson, 8615 Studebaker Drive, explained the reasons why keeping hens in
residential zones was beneficial. She stated hens and rabbits were ideal for small spaces;
they are quiet, good with general waste, promote sustainability, and good for educational
purposes,
Chairman Cruz asked Ms. Larson if she was an advocate for hens on smaller lot sizes even
though the City of Kennewick did away with the keeping of hens on smaller lots,
-1-
Ms. Larson answered that she is curious as to why Kennewick did away with hens on the
smaller lots sizes because in her research, it was possible to have hens on a small lot with a
small number of hens. If done properly, she did not see a problem with hens on a small lot.
Mr. White stated the prohibition of hens in Kennewick had nothing to do with hens but
everything to do with roosters and since there was a rooster problem, the City of Kennewick
prohibited all chickens.
Chairman Cruz closed the Public Hearing.
Commissioner Hay explained that he has had to live next to someone who kept a rooster
and the noise was problematic. To keep away the problem of roosters, Mr. Hay proposed no
hens either.
Commissioner Anderson moved, seconded by Commissioner Kempf to adopt the Findings of
Fact, as contained in the November 17, 2011 staff report on code amendments for PMC
Section 25. The motion was approved with one dissenting vote from Commissioner Hay.
Commissioner Anderson moved, seconded by Commissioner Kempf that the Planning
Commission recommended that the City Council adopt the proposed code amendment
modifying PMC Section 25 to approve keeping of hens and rabbits in residential zones, with
conditions as contained in the November 17, 2011 staff report. The motion was approved
with one dissenting vote from Commissioner Hay.
Staff explained that this will go to City Council Workshop November 28, 2011 and then
most likely to the first City Council Meeting December 5, 2011.
-2-
Rabbits and Hens in "R" Zones
Summary Table
Zones Zones Zones
Provision RT; RS-20; RS-12; R-S-1 R-1; R-1A; R-1 A-2 R-2; R-3; R-4
Total # of Small Animals
Maximum 6* 6 6
Minimum Coop/Hutch/Run
Setback 10' 10' 10'
Roosters Prohibited Yes** Yes Yes
Single-Family Lots Only N/A N/A Yes
Minimum Lot Size N/A N/A 5,000 Sq. Ft.
* Up to 20 rabbits or hens allowed in RT, RS-20, RS-12, or R-S-1 zones with lots over 22,000
square feet; 40 with 32,000 square feet or more (40 maximum).
** There is currently no prohibition for roosters in RT, RS-20, RS-12, or R-S-1 zones with
lots over 22,000 square feet.
Printed 11/21/2011
CA 2011-005 Summary Table Rabbits and Hens.xlsx Page 1 of 1 at 2:33 PM
AGENDA REPORT
December 8,2011
FOR: City Council Workshop Meeting: 12/12/11
Regular Meeting: 12/19/11
TO: Gary Crutchfie I anager
FROM: Dunyele Mason, Financial Services Manager
SUBJECT: 2011 BUDGET SUPPLEMENT
1. REFERENCE(S):
A) Proposed ordinance amending the 2011 Operating Budget
B) Proposed ordinance amending the 2011 Capital Improvements Projects Budget
C) Proposed resolution authorizing the Interfund Loans
D) Memo from Financial Services Manager to City Manager
E) Exhibit 1 --2011 Budget Supplement Worksheet
IL ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
A) Discussion - December 12, 2011
B) Public Hearing - December 19, 2011
C) MOTION: 1 move to adopt Ordinance No. amending the 2011 Operating
Budget by providing a Revenue Supplement of $7,490,103 and an
Expenditure Supplement thereto in the amount of $9,983,518 and to
authorize publication by summary only.
D) MOTION: I move to adopt Ordinance No. amending the 2011 Capital
Improvements Budget by providing an Expenditure Supplement thereto
in the amount of $2,552,584 and to authorize the publication by
summary only.
E) MOTION: I move to approve Resolution No. , authorizing temporary inter-
fund loans from the General Fund to the Construction Fund and the
Community Development Block Grant Fund (CDBG) in the amount of
$1,130,000 and from the Blvd Maintenance Fund to the
Stadium/Convention Center Fund in the amount of $689,000 and from
the Pension Fund to the LID Construction Fund in the amount of
$89,351.
III. FISCAL IMPACT:
Per attached Exhibit I —2011 Budget Supplement Summary
IV. HISTORY AND FACTS BRIEF:
The items recommended to be included in the Supplemental Budget are for expenditures
that were unanticipated or indeterminable at the time of the 2011 Budget preparation.
Resources for the expenditures are:
1. Unanticipated revenue
2. Contributions from active funds
3. Ending fund balances
V. DISCUSSION:
Please see attached memo from the Financial Services Manager to the City Manager.
4(e)
ORDINANCE NO.
AN ORDINANCE AMENDING THE 2011 ANNUAL OPERTING BUDGET OF THE
CITY OF PASCO BY PROVIDING SUPPLEMENT THERETO; BY APPROPRIATING
REVENUE RECEIVED IN EXCESS OF ESTIMATED REVENUES FOR THE
CURRENT YEAR AND BY PROVIDING TRANSFERS AND ADJUSTMENT
AUTHORITY.
WHEREAS, staff has identified the need to make certain revisions to the 2011 Annual
Operating budget originally adopted through Ordinance No. 3945 on December 21, 2010, and
WHEREAS, a Public Hearing has been held subsequent to due notice, and the City
Council has, after consideration, deemed the proposed Supplement to the Annual Operating
Budget necessary and appropriate; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS
FOLLOWS:
§1. Pursuant to RCW 35A.33.120, the 2011 Operating Budget be and the same is hereby
amended to provide for the following adjustments to revenue and expenditures, and by providing
authority for any necessary transfer of money within or between funds indicated.
FUND REVENUES EXPENSES
GENERAL FUND 524,500 2,434,875
STREET FUND 887,448 703,000
ARTERIAL STREET FUND - 257,448
1-182 TRAFFIC IMPACT FUND - 134,983
COMMUNITY DEVELOPMENT GRANT FUND 1,463,615 1,286,082
AMBULANCE FUND 160,000 445,635
MARTIN LUTHER KING (10,000) -
CEMETERY FUND 231 16,000
BLVD MAINTENANCE FUND - 60,000
GOLF COURSE FUND 1,414,660 1,219,030
SENIOR CENTER FUND 35,000 -
MULTIMODAL FUND - 45,000
SPECIAL ASSESSMENT LODGING FUND 25,000 25,000
REVOLVING ABATEMENT FUND 8,000 31,735
TRAC DEVELOP & OPERATING FUND 190,000 210,500
PARK FUND 220,000 139,510
CAPITAL IMPROVEMENT FUND 100,000 -
STADIUM/CONVENTION CENTER FUND 120,000 16,000
LID 144 DEBT SERVICE 104,000 104,000
LID 145 DEBT SERVICE 144,470 144,470
LID 146 DEBT SERVICE FUND - 35,323
GENERAL CONSTRUCTION FUND 1,092,978 320,000
UTILITY FUND - 214,931
EQUIPMENT MAINTENANCE FUND -Gov 30,000 30,000
EQUIPMENT MAINTENANCE FUND- Utility 75,000 75,000
EQUIPMENT REPLACEMENT FUND - Gov 170,500 414,114
EQUIPMENT REPLACEMENT FUND-Utility 431,945 245,000
MEDICAL/DENTAL FUND - 900,000
CEMETERY TRUST FUND - 231
FIRE PENSION (OPEB) FUND 25,000 105,300
OLD FIRE PENSION - 89,351
LID CONSTRUCTION FUND 277,756 281,000
TOTAL CITY WIDE OPERATING BUDGET 7,490,103 9,983,518
The above items are shown as revenues and appropriations to specific budgets and items
within budgets in the attachment marked "Exhibit 1 - 2011 budget Supplement" the
Expenditure/Revenue detail, which is incorporated herein as though fully set forth. The General
fund is authorized to use amounts in addition to the above for the purpose of issuing duly
authorized interfund loans for the purpose of providing positive cash and fund balances as of
12/31/11 for any and all other funds.
§2. That the additions in appropriations and expenditures are hereby declared to exist in
the above funds for the said uses and purposes as shown above and in the Exhibit and the proper
City officials are hereby authorized and directed to issue warrants and transfer funds in
accordance with the provisions of this Ordinance,
§3. This Ordinance shall take effect five (5) days after passage and publication.
Adopted by the City Council of the City of Pasco, on this 19th day of December, 2011.
City of Pasco:
Matt Watkins, Mayor
Attest: Approved As To Form:
Debra Clark, City Clerk Leland B. Kerr, City Attorney
ORDINANCE NO.
AN ORDINANCE RELATING TO SUPPLEMENTAL CAPITAL IMPROVEMENT
PROJECTS BUDGET FOR THE YEAR 2010.
WHEREAS, staff has identified the need to make certain revisions to the 2011 Capital
Improvement budget originally adopted through Ordinance No. 3946 on December 21, 2010, and
WHEREAS during the year 2011 additional capital improvement expenditures became
necessary that were unanticipated and a need exists requiring a Supplement to provide for such
expenditure authority, and
WHEREAS a Public Hearing has been held subsequent to due notice, and the City
Council has after consideration, deemed the proposed Supplement to the Capital Improvements
Projects Budget necessary and appropriated; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS
FOLLOWS:
§I. The following capital improvement projects hereby authorized, budgets amended and
projects closed as detailed below:
Current Change In New Total
Proiect Description Authority Authority Authority
NEW 2011 PROJECTS
Waldemar/Helena (1 of 3 lots) - 17,500 17,500
Waldemar/Helena(2 of3 lots) - 17,500 17,500
Waldemar/Helena (3 of') lots) - 17,500 17,500
NSP Project # 1 - 66,000 66,000
CBC Main Entr & Argent Traffic Signal - 82,000 82,000
201 1 STP Grant Overlays - 8,500 8,500
Oregon Ave (SR397) - 10,000 10,000
Columbia Water Supply Project - 5,000 5,000
NW Common Lift Stations - 65,500 65,500
USBR Irrig Connection - 18,000 18,000
Total New 2011 Projects - 307,500 307,500
CONTINUING PROJECTS WITH 2011 INCREASES
Linda Loviisa(Capitol) Park 265,000 79,510 344,510
Lewis St Overpass 5,212,626 118,306 5,330,932
LID 9148 Kurtzman Park Ph, II St. Imp - 732,707 732,707
West Side Water Treatment Plant 12,000,000 1,265,331 13,265,331
LID9148 Kurtzman Park Ph. II Storm - 49,230 49,230
Continuing Projects with 2011 Increases 17,477,626 2,245,084 19,722,710
PROJECTS CLOSING IN 2011
NSP 2103 N l 9th Drive 76,896 56,278 133,174
NSP 404 N 19th Drive 83,889 77,383 161,272
NSP 2116 N 18th Avenue 111,699 39,449 151,148
HOME 120 N Owen Avenue - 99,367 99,367
HOME 533 S Owen - 233,303 233,303
HOME S24 S Waldemar Avenue - 134,699 134,699
Police Station 700,000 (700,000) -
Road 54 (Erwen Property) Improve 30,000 (30,000)
Soccer Facility 200,000 (200,000) -
Road 100& 1-182 Ramps 2,000,000 (1,893,260) 106,740
LID#146 Kurtzman Park St. Imp 443,979 - 443,979
Road 68 Improvements(Phase l) 300,000 88,482 388,482
20th Ave Gateway 130,000 44,447 174,447
}Harris Road Realignment 250,000 (250,000) -
3rd and Pearl (and Jan) - 91,989 91,989
Com'l/Sr12/Lewis St Water Line 600,000 (600,000) -
2011 Misc Wtr Line lmpr(Rd 60-62&Sylvester) - 91,102 91,102
2011 Filtrat Plant Improv (VFD Pumps) 50,000 (49,140) 860
Corn'I Ave Water Line Extension (WM.3.1) 500,000 13 0,92 3 630,923
Com'l Ave Water Line Extension (Phase 11) 275,791 20,231 296,022
201 1 Meter Replace &Cross Connect 150,000 - 150,000
2011 Wtr Line Ext 150,000 - 150,000
2009 Sewer Replacement (Older district) 336,336 678 337,014
2010 Sewer Line Ext (Kurtzman ) 281,961 102,561 384,522
2010 Sewer Replacement 500,000 69,600 569,600
2011 Sewer Line Ext -Road 100 500,000 (500,000) -
Corn' I Ave Sewer Line Ext & Purnp St 500,000 (105,100) 394,900
PWRF Irrigation Upgrade 110,000 - 110,000
2011 Drywell Retrofit 50,000 (5,062) 44,938
Total Projects Closing in 2011 8,330,551 {;3,052,070) 5,278,481
§2. This Ordinance shall take effect five (5) days after passage and publication.
Adopted by the City Council of the City of Pasco, on this 19th day of December, 2011.
City of Pasco:
Matt Watkins, Mayor
Attest: Approved As To Form:
Debra Clark, City Clerk Leland B. Kerr, City Attorney
RESOLUTION NO.
A RESOLUTION AUTHORIZING INTERFUND LOANS FROM THE
GENERAL FUND TO OTHER FUNDS.
WHEREAS, the City Council of the City of Pasco has, pursuant to RCW 35.33.121, found
that it is in the best interest of the City to lend funds from the General Fund to the Construction
Fund and the CDBG Fund, and from the Blvd Maintenance Fund to the Stadium/Convention
Center Fund, and from the Pension fund to the LID Construction Fund and from the General Fund
to any other fund that would otherwise not have a positive cash balance at 12/3 1/1 l and to provide
for the repayment thereof, and
NOW, THEREFORE,
THE CITY OF PASCO, WASHINGTON HEREBY RESOLVES AS FOLLOWS:
1. Authorization for loans. The Financial Services Manager of the City of Pasco is
hereby authorized and directed to make the following loans from the City of Pasco
funds as follows:
(A)From the General fund to the Construction fund to provide temporary financing
for LID 148 construction in the amount of$380,000;
(B) From the Blvd Maintenance fund to the Stadium/Convention Center fund to
provide adequate resources for working capital and to pre-pay certain external
debt obligations in the amount of$689,000;
(C)From the Old Fire Pension Fund to the LID Construction fund in the amount of
589,351 to repay the construction and provide permanent financing for the
LID 146 participants,
(D)From the General fund to the CDBG fund in the amount of$750,000 that would
otherwise not have a positive cash balance at 12/31/11 to ensure positive fund
balance in all funds as of 12/31/11.
2. Terms and Memo rialization. The effective dates of the loans shall be as listed below.
This resolution shall constitute memorialization of these loans and their terms.
(A) Disbursement is authorized in portions or in lump sum and shall bear zero
percent (0%) interest and is due for repayment when permanent financing is
secured after the end of construction. Disbursement is authorized retroactively
to the first day of construction spending.
(B)Disbursement is authorized with $60,000 to be disbursed 12/20/11 and
$629,000 to be disbursed 411112; the interest rate is set at 3% and the loan is
due 4/1/2019 with fixed annual payments starting 4/1/2013 and an interest only
payment due 4/1/2018.
(C)Disbursement is authorized as of 5/2/11; the interest rate set at 4.1% with a due
date of 512/21. Payments are due annually and are set at an amount equal to
cash collected from LID participants as of April 30'h of each year.
(D)Disbursement is authorized as of 12/31/11 and repayment is due as of I/l/2012.
The interest rate is zero percent (0%).
PASSED by the City Council of the City of Pasco, Washington, this 14th day of December 2011.
SIGNED in authentication of its passage this 19`h day of December, 2011.
Matt Watkins, Mayor
ATTEST: APPROVED AS TO FORM:
Debra Clark, City Clerk Leland B. Kerr, City Attorney
2011 Operating & Capital Budget Supplement Memorandum
Date: December 8, 2011
To: Gary Crutchfield, City Manager
Rick Terway, Administrative & Community Services Director
From: Dunyele Mason, Financial Services Manager
Subject: 2011 OPERATING AND CAPITAL IMPROVEMENTS PROJECTS BUDGET
SUPPLEMENT
As is traditionally the case, a budget supplement is required to increase the legal spending authority for
those items unanticipated or indeterminable at the time the 2011 Annual Operating and Capital
Improvements Projects Budgets were adopted.
2011 OPERATING BUDGET SUPPLEMENT
Resources for the 2011 Operating Budget Supplement will be unanticipated revenue, contributions from
active funds, and beginning fund balance. The budget supplement ordinance will only list those funds
that will actually increase revenue and/or expenditure amounts.
GENERAL FUND
The following departments require additional authority to cover unanticipated expenditures. Please refer
to the attached Exhibit to see the line items affected. The Exhibit is broken into three sections. Section 1
shows the changes relating to operating costs; Section 2 shows the changes in the interfund loans and
transfers and Section 3 shows the changes in the Capital Improvement Plan (CIP) project budgets.
1. The Municipal Court Department requires a supplement of $38,000. Increases in the Municipal
Court Division are $10,000 for Interpreters and $10,000 for Judge Pro-Tem and $18,000 for
increases in the interfund insurance premiums(which had a premium increase July 2011).
2. The Police Department requires a supplement of$50,000 to cover the cost of the care and custody
of prisoners.
3. The Fire Department requires a $126,575 increase in expense authority which is partially offset by
$14,000 of new revenues from Rescue Tearn Services and a grant of $76,000 (for Wildland
firefighting equipment and clothing). Most of the supplement is due to the $95,000 expense related
to a new Wildland firefighting grant, $27,440 is related to increase fuel and equipment
maintenance charges and the remaining 57,000 due to an increase in Other Agency Services,
4. The Administrative & Community Services Department requires a supplement of $186,200.
$124,000 is for outside legal services. The estimated 2011 legal activity is expected to be slightly
higher than prior year. Other increases include $11,300 for additional funding not available in the
replacement fund to pay the full cost of a vehicle purchased for recreation; $25,000 for part-time
wages at Memorial Pool; $8,000 in part-time wages for an additional Park Danger; $5,000 to
1
2011 Operating & Capital Budget Supplement Memorandum
address the Chiawana Park path improvement and $12,900 for additional funding not available in
the replacement fund to pay the full cost of a vehicle purchased for facilities.
5. The Engineering Department requires a supplement of $163,500. This increase is due to the
reorganization of the Engineering Department that moved Engineering personnel costs from the
utilities to the general fund. This allows the engineering costs to be more accurately charged to the
variety of projects and funds that receive these engineering services, Interfund Engineering
Services revenues to the general fund have increased accordingly.
6. Electrical and lighting repairs were done at the Library partially funded by a grant. Additional
budget of$42,000 is needed to cover costs not funded by the grant.
7. The Non-Departmental increase found in Section 1 of the attached Exhibit for the Generai Fund
reflects the $25,000 contribution for Pasco's share of the Regional Public Facility District. Section
2 of the Exhibit shows an additional increase of $2,009,100 which is for interfund loans
($1,128,495), transfers ($790,615) to subsidize other funds' operations as well as $89,990 for
additional current year constniction.
The total amount of the 2011 General Fund's supplemental budget expenditure increases is
$2,434,875 (for operating costs of $425,775 and for interfund loans & transfers of $2,009,100.
These expenditure increases are funded by additional operating revenues of$253,500, transfers in
of$271,000 and fund balance of$1,160,375.
OTHER OPERATING FUNDS
CITY STREET FUND
The City Street Fund requires $828,390 in additional spending authority for various Street Fund items.
Two grants totaling $320,000 increase the revenues for this fund as well as additional expenditures (to
spend the grant money). Undercoating Lewis St underpass is $29,000, other supplies of $20,000,
adjustments for the administrative chargeback methodology change is $7,000, medical dental premium
increases of$15,000 and Engineering Services (which were previously included as part of the General
Fund) are estimated at $280,000. Overall total expenditure increase for this fund is $703,000 which is
funded 5320,000 from grant revenues and $383,000 from transfers in. The remaining transfer in is used
to restore fund balance.
ARTERIAL STREET FUND
The Arterial Street Fund requires $30,000 in additional spending authority to fund production of the
conceptual design for Oregon Ave upgrades and $227,448 for transfers in support of miscellaneous
street projects. The total supplemental budget is $257,448 and is funded through use of fund balance.
I-182 TRAFFIC IMPACT FUND
This fund is transferring $134,983 to new construction projects. One project is for a new light on Argent
and Columbia Basin College is participating in this project. The other is to provide funding for Road 68
Phase 1 improvements. These (transfer) expenditures will utilize existing fund balance.
2
2011 Operating & Capital Budget Supplement Memorandum
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
The Community Development Block Grant Fund requires a $750,000 interfund loan in order for the
fund to have positive cash balance at year end. The loan will be repaid in January. $1,286,082 is
needed to provide expenditure budget authority for 2011 activities of which $671,000 is to be funded
through grant revenues, $42,615 through general fund transfers for code enforcement services, $750,000
through an overnight loan and $177,533 through the use of fund balance.
AMBULANCE FUND
A total expenditure budget increase of $445,635 is needed for the ambulance fund. $I75,000 is a
bookkeeping change pursuant to auditor recommendation which changes the recording of bad debt
write-offs to be classified as an expense rather than as a reduction in revenues. One position was moved
to this fund to more accurately reflect then number of ambulance personnel adding $69,000, Increased
call volume has pushed up overtime by $46,000 and medical supplies by $11,000. The July
medicaUdental premium increase added $31,120, An additional amount of $113,515 was needed to
supplement the equipment replacement reserve contributions to fund the purchase an ambulance chassis,
defibrillators and MDTs.
MLK FUND
Funding allocation for various city services changed with the adoption of the 2011 CDBG spending
plan. $10,000 of funding previously budgeted was allocated in this spending plan to other city programs
for 2011.
CEMETERY FUND
The cemetery requires an additional $16,000 to cover salary and wage costs which will be funded
through use of fund balance.
BOULEVARD MAINTENANCE FUND
This fund will provide funding to the Stadium/Convention center fund via an interfund loan which will
be disbursed in two parts. The first part equaling $60,000 provides adequate working capital and
positive cash balances at year end. The second part is to provide funding for the Stadium/Convention
center to pay-off of its external loan April 1, 2012 and pay also for repaving of the parking lot. This loan
will be repaid with interest over seven years. These terms are beneficial to both funds by providing
higher interest earnings for the Boulevard Maintenance fund and low cost financing for the
Stadium/Convention Center fund.
GOLF COURSE FUND
This is a new fund created in 2011 due to the termination of the land lease in February 2011 being
replaced by a management operating agreement. All the revenues and expenses of the golf course now
run through this fund. Accordingly $1,219,030 of expenditures are budgeted which are funded by
$1,221,660 of revenues with the remaining $2,630 to create a fund balance.
3
2011 Operating & Capital Budget Supplement Memorandum
SENIOR CENTER FUND
This fund received $25,000 from the General Fund to refinish the floor at the Sr. Center and received an
increase in funding support of$10,000 from the CDBG grant program.
MULTIMODAL FUND
The door replacement for this facility was approved and planned for installation in 20I0 but due to
weather conditions the contractor was not able to obtain and install the replacement until 2011. $45,000
of budget authority therefore needs to be added to 2011 and will be funded by use of existing fund
balance.
SPECIAL ASSESSMENT LODGING FUND
This fund serves as a "pass through" for the "TPA: fee imposed by hotels for increased visitor traffic.
Revenues for the year are expected to be higher than original estimates by $25,000. Thus both revenues
and expenditure budgets are increased by this amount with no expected changed in fund balance.
REVOLVING ABATEMENT FUND
This fund has a total of$31,735 of additional expenditures. $8,000 is a bookkeeping change pursuant to
auditor recommendation which changes the recording of bad debt write-offs to be classified as an
expense rather than as a reduction in revenues; the additional cost of recording liens and other payments
to the Franklin County Auditor's office is $8,500 and this fund's purchase of a trailer and generator
increased the budget by $15,235. These increases will be funded through an estimated increase in
revenues of$8,000 and use of$7,235 of fund balance.
TRAC DEVELOPMENT AND OPERATING FUND
An additional 5210,500 in spending authority is needed this year to cover necessary subsidy payments to
TRAC including Pasco's share of any operating losses. This higher amount includes three components:
1) $59,787 in payments in April of this year for settlement of final 2009 operating losses; 2) $47,920 in
additional subsidy payments for 2010 operating losses, and 3) $102,793 in higher-than-budgeted
monthly subsidy and to provide for a positive ending fund balance for 2011. A final settlement for 2011
operating losses will occur in February or March of 2012; however, the exact amount is not yet known.
$190,000 of the expenditures will be funded through a transfer from the General Fund and the remaining
$20,500 through the use of fund balance,
PARK FUND
This fund provides resources for various park projects. Once projects start other funding sources (e.g,
grants) may come available. When projects are finished under budget then additional funds are available
to return to this fund from the construction fund. $139,510 is disbursed to new projects and $220,000 is
being returned from other projects which are closing.
4
2011 Operating & Capital Budget Supplement Memorandum
CAPITAL IMPROVEMENT FUND
This fund provides resources for various capital projects. Once projects start other funding sources (e.g.
grants) may come available. When projects are finished under budget then additional funds are available
to return to this fund from the construction fund. A change in funding sources for Linda Loviisa Park
has allowed the return of 5100,000 to the capital improvement fund.
STADIUM/CONVENTION CENTER FUND
An amount of 516,000 is needed to pay for the amount of the Tri-City Visitors Bureau in excess of the
original budget, This along with $44,000 to provide for a positive cash balance in the fund at year-end
will be funded through an interfund loan from the Boulevard Maintenance fund.
LID 144 &145 DEBT SERVICE FUNDS
These funds exist to collect payments from LID participants and to repay the financing of LID
construction. Thus disbursements occur to the extent revenues are received and so no use of fund
balance is needed.
GENERAL CONSTRUCTION FUNDS
This fund collects funds from a variety of sources and constructs non-utility projects. Once projects start
other funding sources (e.g. grants) may come available. When projects are finished under budget then
additional funds arc available to return to this fund from the construction fund. There are $1,092,978 of
additional funding sources and $320,000 to return to a variety of funds.
WATER/ SEWER FUND
This utility received a stormwater grant and chose to use this grant to purchase a street sweeper. Since
all utility equipment is owned by the Equipment Replacement (Utility) Fund there is a$214,931 transfer
out to pass the stormwater grant through to the Equipment Replacement fund to acquire the sweeper.
EQUIPMENT MAINTENANCE (GOV'T) FUND
"Phis fund provides maintenance services including fuel for vehicles not used in utility operations. An
additional $30,000 is needed to supplement the fuel purchases budget. The additional cost is funded
through additional charges to the funds that use those vehicles, Thus no use of fund balance is needed.
EQUIPMENT_NLkINTENANCE {UTILITY) FUND
This fund provides maintenance services including fuel for vehicles used in utility operations. An
additional $75,000 is needed to supplement the fuel purchases budget. The additional cost is funded
through additional charges to the funds that use those vehicles. Thus no use of fund balance is needed.
5
2011 Operating & Capital Budget Supplement Memorandum
EQUIPMENT REPLACEMENT (GOV'T) FUND
A detailed review of vehicle and equipment replacement was undertaken in 2011 . Some vehicle
purchases scheduled for the current year were postponed to future years. Conversely some vehicles that
were scheduled for replacement in future years were deemed necessary to purchase in the current year.
Not all vehicles had sufficient funds set aside in the equipment reserves to fully fund the new purchases.
The total supplement is 5332,140. Some of the major additions are $96,000 for ambulance, $126,000 for
defibrillators, $35,000 for buy-out ot'various police vehicle leases, $20,000 for an engineering vehicle
and $86,000 for a dump truck chassis. These additions were offset by $50,000 in vehicles originally
budgeted for replacement that were not replaced this year. A vehicle belonging to this fund (previously
used by Streets) was transferred to the Equipment Replacement (Utility) fund for use in utility
operations. The book value of this vehicle was$3,014. So even though this was not a cash transfer,
approval by council is required. This transfer was funded through use of fund balance.
EQUIPMENT REPLACEMENT (UTILIT'hw`) FUND
Two street sweepers were purchased in the current year resulting in a supplementary budget of
$245,000. This was funded $214,000 through a stormwater grant that was provided to this fund via
transfers and the remaining costs not available in the replacement reserves was funded through interfund
charges and through the use of find balance. A vehicle that was used in street operations was transferred
to the Equipment Replacement (Utility) fund for use in utility operations. The book value of this vehicle
was $3,014. So even though this was not a cash transfer, approval by council is required.
MEDICAL/DENTAL FUND
The city is self-insured for employee medical, dental and vision, The claims to date have been higher
than expected and already exceed the current year's budget. Due to the nature of the claims it is difficult
to predict and so current year spending and the highest month's claim in the current year was used to
determine the supplemental request. As 2011 claims continue to be processed through January and to
ensure adequate budget the total supplement is $900,000.
OLD FIRE PENSION (OPEB) FUND
This is a new fund created in 2011 when the Old Fire Pension fund was split into two funds per
accounting standards. This fund pays the medical premiums for its members and the total expenditure
budget is $105,300. It is funded $25,000 from investment income and 580,300 from fund balance.
OLD FIRE PENSION FUND
This fund purchased a long term investment in the form of financing LID 146 obligations through an
interfund loan for a total of$89,351 using existing fund balance.
e
2011 Operating & Capital Budget Supplement Memorandum
LID CONSTRUCTION FUND
This fund was previously used for collecting resources related to LID construction projects. Temporary
construction financing was provided through the general fund. This fund is now being closed and the
residual cash (and fund balance) being returned to the general fund in the amount of$281,000.
2011 CAPITAL IMPROVEMENT BUDGET SUPPLEMENT
Some projects will be complete by the end of 2011 and will be closed and removed from the Capital
Improvement Budget. Also, during the course of the year some capital improvements projects exceed
their original appropriation and some are new and thus not included in the 2011 Capital Improvements
Projects Budget. Therefore, a supplement to the 2011 Capital Improvements Projects Budget is required,
The total amount of increased authority is $385,000. New projects total $307,500, continuing projects
with 2011 increases total $2,245,084 and the net effect of closing projects total $(3,052,070). The total
overall change in the Capital Improvement Budget is $(499,486). It is somewhat unusual for the overall
change to be a decrease. The decrease is due to several older projects that have been in the Capital
Improvements Projects Budget for several years, and for which grant and other external funding did not
become available, are being removed from the budget in the current year.
7
w
2011 Operating Budget Supplement
(Operations - Section 1)
Net Change In
Account Descripli4n REVFNt1ES EXPF,ND FUND BAL Explanation
GENERAL FUND
COURT
Judge Pro-Tem 10,000 Impact ofjudge retiring
Interpreters 10,000 Consistent with past spending levels
Medical/Dental Interfund 18,000 Judicial -July premium increase
Total Muni Court 38,000
POLICE
Care Custody o1'Prisoner 50,000 Budget$1,3m;actual $I.35m.
'total Police 50,000
FIRE
Grant items 76,000 95,000 Wildland firefighting tools,equipment,protective clothing
Interfund Equip Rental 24,575 Add') contribution needed for MDTs($21 K)
Other Agency Services 7,000 Increase in calls with assistance from other agencies
Interfund Rescue Team Svcs 14,000 Interfund from Utility Fund
Total Fire 90,000 126,575
A &C'S-LEGALSF11VI€'ES
Outside legal services 124,000 Reflect current year's services
A&CS-R.ES:RF,AT1ON
Interfund Equip Rental 11,300 Additional ennuibution needed For vehicle purchase price
A&CS-Pool,s
Part-time wages 25,000 Memorial Pool staffing level; increased coding accuracy
A&CS-FACILITIES
Part-time wages 8,000 Additional Park Ranger
Repair&Maintenance 5,000 Chiawana Park Path
Interfund Equip Rental 12,900 Additional contribution needed for vehicle purchase price
Total AC&S 186,200
ENGINEERING
Salaries 133,000 Reclass engineering personnel costs from Utilities;
Benefits 15,500
MedicaUDental Interfund 15,000
Interfund Engineering Charges 163,500
Total Engineering 163,500 163,500
LIBRARY
Repair&Maintenance- Bldg 42,000 Electrical work; PUD grant not as high as expected
NOND 'PAR'rNjENTAl_
Organization Services 25,000 Reginnal Public Facility District
Total Non Departmental 25,000
"TOTAL GENERAL FUND 253,500 425,775 {172,274}
12/9/20112:24 PM 8
2011 Operating Budget Supplement
(Operations - Section 1)
Net Change In
4ccopw Rescriplion REVENUES EXPEND FUND BAL Explanation
STREET FUND
Maintenance Projects 29,000 Lewis St Underpass Coating- additional
Internal hngincering 280.000 Internal Engineering support
Street Light Maintenance 200.000 Energy hfficiency Grant;$282,490 in 2012
Repair/Maintenance Supplies 20,000 "No Truck Parking"signs
Tools!Equip/lurn <15,001 152.000 School '!_one Beacons Grant Project
Interfund Admin Chargeback 7.000 Updated allocation model per auditor
Medical Dental 15,000 July premium increase
Conservation Grant 200,000 Street light replacements
School Beacon Grant 120,000 School Zone Beacons Grant Project
TOTAL STREET FUND 320,000 703,000 (383,000)
ARTERIAL STREET FUND
Consultant Services 30,000 Concept Design- Oregon Ave
TOTAL ARTERIAL Si'RFET 30,000 (30,000)
COMMUNITY DEVELOPMENT GRANT FUND
Salaries 22,000 Additional grant authority&use or prior grant authority
Other Services 285,000 Additional grant authority& use of prior grant authority
Capital Expenditures 486,000 Additional grant authority& use of prior grant authority
Grant&Program Revenue 671,000 Additional grant authority
TO,rAl,CDBG FUND 671,000 793,000 (122,000)
AMBULANCE FUND
Bad Debt Expense 175,000 175,000 Budgeted as reduction of revenue;not as an expense
Salaries& Wages 69,000 Change in position allocation approved after original budget
Over Time Wages 46,000 Increasing call volume
Medical Supplies 11,000 Increasing call volume
Interfund Equip Rental 113,515 Additional contribution needed For Chassis&Derib's,MD'Ps
Medical Dental 31,120 July premium increase
Ambulance Utility Charge (15,000) Based on current year activity
'ro'rAL AMBULANCE 160,000 445,635 (285,635)
CEMETERY FUND
Salary&Wages 16,000 Consistent with prior year activity level
TOTAL CEMETERY 16,000 (16,000)
GOLF COURSE FUND
Mise Supplies 9.685
Credit Card lees 20,000
Combined Insurance Policy 1.240
B&O Taxes 21,980
Interfund Engineering 1,500
Equip Replacement 41,280
Interfund Rental 260,000
lviise Professional Services 863.345
Service Charge Fee 50
12/9/2013 2.24 PM 9
2011 Operating Budget Supplement
(Operations - Section 1)
Net Change In
Account Descri- ion REVENUES EXPEND FUND BAL Explanation
Season Pass Sales 188,250
Greens Fees 496,100
Tournament Green Fees 5,000
Cart Rental 175,000
Driving Range 69,000
Lessons 4,000
Pro Shop Merchandise 115,000
Sales Discounts (30,000)
Other Revenues 4,200
F&D Snack Bar& Grill 192,500
F&H 'rournaments 2,000
Investment Interest 60
Miscellaneous 500
TOTAI,GOLF COURSE 1,221,660 1,219,030 2,630
MULTLY10DA L FUND
Repair/Mainz of Bldg 45,0_00 Replacement door install delayed From 2010.
TOTAL NIULTIMODAL 45,000 (45,000)
SPECIAL ASSESSMENT LODkING FIND
Organizational Services 25,000 25,000 Contingency estimate;spending depends on revenues.
TOTAL LODGING 25,000 25,000
R .VOLVINC:ABATEMENT FUND
Bad Debt Expense 81000 81000 Budgeted as reduction of revenue;not as an expense
Miscellaneous Services 8,500 Franklin county auditor lees
Vehicles-Equipment 15,235 New trailer/generator purchase
TO'rAL ABATEMENT 81000 31,735 (23,735)
TRAC DEVELOP & OPERATING FUND
County Services 210.500 Operating subsidy for past and current years
't OTAL'rRAC - 210,500 (210,500)
STADIUN11CONVENTION CENTER FEND
Organizational Services 16,000 Trl-Cities Convention Bureau
Interfund Loan Proceeds 60,000 To provide working capital
TOTAL.STADIUM 60,000 16,000 44,000
LID 144 DEBT SERVICE
Loan debt Service 104,000 Pay off debt with early prepayments received
],can proceeds received 104,000
TOTAL LID 144 104,000 104,000 -
LID 145 DEBT SERVICE
Loan debt service 144,470 Pay oft'debt with early prepayments received
Loan proceed~ received 144,470
TOTAL LID 145 144,470 144,470 -
LQUIPMENT MAINTENANCE FLNI) -Gov
Fuel 30,000 Additional fuel purchase costs
12/9/20112•.24 PM fit)
2011 Operating Budget Supplement
(Operations - Section 1)
Net Change In
Account Des_crin ion REVENUES EXPEND FUND RAL Explanation
Interfund ER Fucl 30,000
'r01'AI,GOV''r EQUIP MAINT 30,000 30,000
E QUIPMEti N N F ND- Utilit
Fuel 75,000 Additional fuel purchase costs
Interfund ER Fuel 75,000
'r0'I'.AL UTILITY EQUIP MAINT 75,000 75,000
EQUIPMENT REPLACENIE.NT FUND -Gov
Vehicle purchases 332,140 Vehicle purchases
ER Repl Police Equip x$5,000 78,960 DVR Purchase(approx$5K each)
Interfund Equip Contributions 170,500 Various Depts contributions to make up shortfall
TOTAL GOY"r EQUIP REPL 170,500 411,100 (240,600)
EQUIPMENT REPLACEMENT FUND-Utility
Vehicle purchases 245,000 Vehicle purchases;$214K Grant Reimbursed
Interfund fiquip Contributions 214,000 .Additional funds for non-grant Street Sweeper
TOTAL UTILEQUIP REPLACE 214,000 245,000 (31,000)
MEDICALIDEISTAL FUND
Medical Claims 900,000 Estimate to provide sufficient authority to pay claims
TOTAL NIED/DENTAL FUND - 900,000 (900,000)
FIRE PENSION IOPERI FUND
Admin Fee 8,300 New accounting fund -no intial budget
Medical/Dental premiums 97,000 New accounting fund-no intial budget
Dividend Income 25,000
TOTAL FIRE MEDICAL FIEND 25,000 105,300 (80,3001
I2/9/2011 2 24 PM 11
2011 Operating Budget Supplement
TRANSFERS and INTERFUND LOANS (Section 2)
Net Change In
Account Qa5rip1j= REVENUES EXPEND FUND BAL Explanation
GENERAL FUND
NONIXTARTNIFNT U�
Interfund loan to Construction fund 378,495 Interim construction financing for LID 148
Interfund loan to CDBG Fund 750,000 Provide for postive cash flow at year end
Transfer Out to Street 350 000 Facilitate interRind charge allocations
Transfer Out to CDBG 42,615 Code Enforce costs not covered by 2010&2011 grants
Transfer Out to Sr Center 15,000 iefnish floor
Transfer Out to TRAC 190.000 Settlement of prior year costs:provide positive fund balance
Transfer Out to Construction 89.990 3rd&Pearl&Jan Street:LID#148
Transler Out to Golf Course 193.000 New pad& Estimate to create positive ending fund balance
Transfer in from LID Const 28L000 To close out fund 700
l'ranslcr in tiom CI)BG (10,000) Grant was reallocated between Sr.Ctr/MLK/Gen'I Fund
TO'T'AL GENER,11.FUND 271,000 2,009.100 (1.738.100)
STREET FUND
Transfer in from General 350.000 Maintain adequate fund balance
Transfer in from Ail Street 217,448 2010 Wsc Traf Signal;2011 Misc Street Improve
TO'T'AL STREET FUND 567,448 - 567,448
ARTERIAL STREET FIEND
Transfers out to Street Fund 217,448 klisc Traffic Signal and other improvements
Transfers out to Constr Fund 10,000 Oregon Ave(SR397)
TOT,ALARTFRIALSTRF.ET 227,448 (227,448)
LU„jRAFF,It IM_(PACT FQ VD
Transfers out to Constr Fund 134,983 C'BC&Argent Tral'fic Signall Road 68 Phase I
TOTAL TRAFFIC IMPACT FUND 134,983 (134,983)
CDHG FUND
Interfund loan proceeds 750,000 Provide for postive cash now at year end
lnterfund transfers 153,082 LID 146 ARRA to 700
lnterfund transfers 340,000 LID#148 Kurtzman Park Ph 11 St Imp
Transfer in from General __ 42.615 _ Enforcement Salaries not covered by grant
TOTAL CDBG FUND 792,615 493,082 299,533
:s
yt.lR rIN l:��TkJ�:}�I�.1NG
TranslCr in from CDBG (10,000) Grant was reallocated between Sr.Ctr1MLK/Gen'l Fund
J'0'1AL MLK FIND (10,000) - (10,000)
BLVD MAIN rFNANCE:FUND
Interfund Loan to Stadium Fund 60,000 ?r.-vide 2011 working capital: keep fund halanee positive.
TOTAL BLVD MAINT FUND 60,000 {60,000)
GOLF COURSE FU VD
Transfer)n From General 193.000 Provide for postive cash flow at year end
TOTAL GOLF COURSE FUND 193,000 193,00,1
U,ta2R('ENTER FS;ND
Transfer in from Gen'l fund 33,000 Refinish Floor&Grant budget realloaction
TO'TA L SR CENTER FUND 35,000 35.000
rAAC Q9VxL9'gA_Q�INC FIND
Transfer in from Gen'l Fund 190,000 Trac Operating
12/9/2011211 PM 12
2011 Operating Budget Supplement
TRANSFERS and INTERFUND LOANS (Section 2)
Net Change In
A.ccnuat D&MCilrtinn R}:VF:NLP, t<.?tPFA1D FIi, nA I Explanation
TOTAL'I'RAC FUND 190.000 190.000
PARK FUND
Transler to Constr Fund 139,510 CIP funding changes between park districts Linda Lovissa
Transler from Constr Fund 220,000 Return prior year temporary construction financing
TOTAL PARK FUND 220,000 139 510 80,490
l'APETAit.IM'IFHOVJ. LENT FUND.
Retum funds to Capital Imp 100,000 Neighborhood Park Linda Lovissa:change in funding source
TOTAL CAPITAL IN1PRN'FUND 100,000 100,000
S FAD111.11%I C'ONVENT10N CENTER FUND
Proceeds from ln(erfund Loan 60,000 Proceeds from Blvd Fund:Provide adequate fund balance
TOTAL STADIUN1 FEND 60,000 - 60,000
1,iD 146 DEB'r$ RVICE F1.)ND
Transfer out to 700 fund 35,323 "transfer prepayments to pay off I,II) 146 amstruction
TOI'AL LID 146 FUND 35323 (35,323)
GLNFRAL t't3NST 1ICTION_FLfIL
Interfimd Loan Proceeds 378,495 - LID 148 temporary construction loan
Return funds to Park Develop 100,000 Linda Lovissa new funding source
Return funds to Capital Imp 100,000 Soccer field
Return funds to Park Develop 120.000 Road 54(E.rwen Property); Chiawana Park District
Transfer in from 1-182 Coori dor 134,963 CBC Main Emir&Argent TrafTic Signal; Rd 68 Ph I
Transfer in from CDBG 340.000 LID 9 148 Kurtzman Park Phase I1 St Impr
Transfer in from Gcn'I Fund 89,990 3rd& Pearl&lan Street: LID 4148
Transfer in front Arterial Street 10,000 Oregon ave(SR397;
Transfer in from Park Dev Fund 139.510 Neighborhood park
TOTAL GEN'L CONSTR FUND 1,092,978 320,000 772,978
IWILTTY FUND
Transler out Equip Replacement 214,931 'Transfer sweeper grant proceeds to ER
TOTAL UTILITY FUND - 214,931 (214,931)
fV111PSIFIrT REPLACEMENT rGOVITI FUND_
Transfer out 3,014 Transfer vehicle from Streets lu Water
TOTAL GOVT EQUIP REPL - 3.014 3.014;
LouipmrNT tiEjACE-A NT{11TILU-Y1 FUND
Transfer in from Storm water 214,931
Transfer in from Street 3,014 Transler vehicle from Streets to Water
TOTAL 1ITn,EQUIP REM 217,945 217,945
OLD HIRE:PENSION
lnterfund Loan Disbursement 89,351 Invest in LID 146,Repay Construction Cost
r0'FAL OLD FIRE PENSION 89,351 09,3511
JJ2- QNSTR111'1'10N FL[-u
Transfer out to Gen Fund 281,000 Transfer to close out fund(Limited to actual cash)
Transfer In fund 246 35,323 Transfer in LID prepayments to pay LID 146 construction
Transfer In from CDBG 153,082 LID 146 ARRA to Fund 700
12/9/2011 2 21 PM 13
2011 Operating Budget Supplement
TRANSFERS and 1NTERFUND LOANS(Section 2)
Nal Change In
Am= IXurhy#ion. REVENUES EXPEND FUND BAL Explanation
Inlerfund Loan Proceeds 89,351
TOTAL LID CONSTRUCT 277,756 281,000 (3,244)
TOTAL TRANSFERS&LOANS 4,007,742 4,007,742
12/9120212:21 AM 14
2011 Capital Budget Supplement
CIP Changes (Section 3)
Current Change In New'1'otal
Pr.aiu Descriplin Authority Authori Authority
NEW 2011 PROJECI-S
Waldemar/Helena(I of3lots) - 17.500 17,500
Waldemar/Helena(2 o1'3 lots) - 17,500 17,500
Waldemar/Helena(3 or lots) - 17,500 17,500
NSP Project# 1 - 66.000 66,000
CBC Main lintr&Argent Trallic Signal - 82.000 82,000
201 1 STP Grant Overlays 8.500 81500
Oregon Ave(SR397) - 101000 10,000
Columbia Water Supply Project - 5,000 5,000
NW Common Lift Stations - 65,500 65,500
USBR Irrig Connection 18,000 18,000
Total New 2011 Projects 307,500 307,500
LONTTNUING FRJJ!i CTS JyITLJ 2911 INCREASE-S
Linda Loviisa(Capitol)Park 265,000 79,510 344,510
Lewis S1 Overpass 5,212,626 118,306 5,330.932
LID 9148 Kurtzman Park Ph.11 St.Imp 732,707 732,707
West Side Water Treatment Plant 12,000.000 1,265,331 13.265.331
LID#148 Kurtzman Park Ph. 1I Storm - 49.230 49,230
Continuing Projects with 2011 htcmwes 17,477.626 2,245,D84 19,722,710
'}fit'TFGTS_"QSINt;IN X11
NSP 2103 N 19th Drive 76,896 56,278 133,174
NSP 404 N 19th Drive 83.889 77,383 161,272
NSP 2116 N 18th Avenue 1 1 1,699 39.449 151,148
HOME 120 N Owen Avenue - 99,367 99,367
HOME 533 S Owen 233,303 233303
HOME 524 S Waldemar Avenue 134,699 134,699
Police Station 700.000 (700,000) -
Road 54(@.even Property)Improve 30.000 (30,000) -
Soccer Facility 200.000 (200,000)
Road 100& 1-182 Ramps 2,000,000 (1,893,260) 106,740
LID#146 Kurtzman Park St.Imp 443.979 - 443,979
Road 68 improvements(Phase I) 300,000 88.482 388,482
20th Ave Gateway 130,000 44,447 174,447
1farris Road Realignment 250.000 (250,000) -
3rd and Pearl(and Jan) - 91,989 91,989
Com'VSrl2tLewis St Water Line 600,000 (600,000) -
2011 Misc Wir Line Impr(Rd 60-62&Sylvester) - 91,102 91,102
2011 Filtrat Plant lmprov(V FD Pumps) 30,000 (49,140) 860
Com'l Ave Water Line Extension(WM.3.1) 500.000 130,923 630,923
Com'I Ave Water Line Extension(Phase 11) 275,791 20.231 296.022
2011 Meter Replace&Cross Connect 150,000 150,000
2011 Wtr Line Ext 150,000 - 150.000
2009 Sewer Replacement(Older district) 336.336 678 337,014
2010 Sewer Line RxI(Kurtzman) 281,961 101561 384.522
2010 Sewer Replacement 500.000 69.600 569,600
2011 Sewer Linc Ext -Road 100 500,000 (500.000)
Com'I Av4 Sewer Line Ext&Pump St 500.000 (105.100) 394,900
PWRF Irrigation Upgrade 11D,000 - 110,000
2011 Drywell Retrofit 50,000 (5,062) 44,938
rota)Projects Closing in 2011 8 330,551 3,052,070) 5,278,481
12/9/2011 2'24 FM 15
AGENDA REPORT
FOR: City Council December b, 2011
TO: Gary Crutchfiel 4ctor. ager Workshop Mtg.: 12/12/11
Regular Mtg: 12/19/11
FROM: Rick Terway, Ddmin & C ommun S ices
SUBJECT: Golf Course Management Agreement
I. REFERENCE(S):
1. Draft Management Agreement
2. Examples of incentives
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
12/12: Discussion
12/19: MOTION: I move to approve the Management Agreement with CourseCo Inc.
for management of Sun Willows Golf Course and, further, authorize
the City Manager to sign the Agreement.
111. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A) On February 28, 2011 the city took possession of Sun Willows Golf course due to
breach of contract by IRI Golf Group. On March 3, 2011, Council approved an
Interim Management Agreement with CourseCo Inc.
B) On June 13, 2011, Council directed staff to start the Request for Proposal process for
long term management of the golf course. On August 18, 2011 a pre-submittal
conference was held with 3 management firms in attendance. Ultimately, 2 firms
submitted proposals and after review by the selection committee reference checks
were made of both firms. CourseCo Inc. was selected and negotiations began. Golf
course staff, city staff and golfers alike have been very satisfied with operations
during the interim period.
C) Negotiations are now complete and the management agreement is before you for
consideration. Some minor legal items need to be adjusted and this will be done
before final approval.
V. DISCUSSION:
A) Staff recommends approval of the Management Agreement with Course Co Inc.
4(f)
SUN WILLOWS GOLF COURSE MANAGEMENT
AGREEMENT
Sun Willows Management Agreement
TABLE OF CONTENTS
SECTION PAGE NUMBER
1.0 DEFINITIONS..........................................................................................................3
2.0 TERM.........................................................................................................................7
3.0 MANAGEMENT OF GOLF COURSE..................................................................8
4.0 APPROVALS..........................................................................................................23
5.0 ANNUAL PLAN......................................................................................................24
6.0 MANAGEMENT FEE......................... .................................................................28
7.0 FINANCIAL AND ACCOUNTING PROCEDURES.........................................29
8.0 BUSINESS RECORDS...........................................................................................32
9.0 INSURANCE AND INDEMNIFICATION..........................................................34
10.0 DEFAULT ...............................................................................................................38
11.0 CONTRACT ENDING TRANSITION PROCEDURES....................................41
12.0 WORK STOPPAGES, DAMAGE OR DESTRUCTION...................................43
13.0 SUBMISSION OF PAYMENTS, REPORTS AND NOTICES..........................45
14.0 DISPUTE RESOLUTION......................................................................................46
15.0 MISCELLANEOUS PROVISIONS......................................................................46
Sun Willows Golf Course Management Agreement
THIS GOLF COURSE MANAGEMENT AGREEMENT between the City of
Pasco, a Washington Municipal Corporation (hereinafter referred to as "City"), and CourseCo,
Inc., a California Corpo ration,(herein after referred to as "Contractor"), is entered into this
day of December, 2011for the management and operation of the Sun Willows Municipal
Golf Course (hereinafter referred to as "Golf Course") according to the following terms and
conditions.
WHEREAS, City is the owner of the Sun Willows Golf Course that includes an 18-
hole golf course, a driving range, a snack bar/restaurant, a pm shop, maintenance facilities, and
all appurtenances incident thereto; and
WHEREAS, City desires to utilize the services of Contractor for the overall
management, maintenance and operation of the Golf Course, collection of fees and other golf,
food and beverage services provided at the Golf Course; and.
WHEREAS, Contractor represents that it has the necessary experience and
qualifications to manage, operate and maintain the Golf Course in accordance with the terms
and conditions of this Agreement; and
WHEREAS, City and Contractor agree that the primary objectives for the Contractor's
performance under this Agreement are to provide the high quality golf experience with food
and beverage services, high quality maintenance practices and to generate revenues sufficient to
cover all expenses of the Golf Course.
NOW, THEREFORE, in consideration for the mutual promises hereinafter set forth,
the parties hereto agree to as follows:
1.0 DEFINITIONS.
The following terms shall be defined as follows for the purposes of this Agreement:
1.01 Affiliate. "Affiliate" is any and all corporations, partnerships. trusts and other entities
directly or indirectly controlled by, controlling or subject to direct or indirect common control
of an entity or person.
1.02 Capital Budget. "Capital Budget" is a budget submitted by the Contractor with the
Annual Plan to set forth anticipated Capital Expenditures for that year,
1.03 Capital Ex uditures. "Capital Expenditures" are an), equipment or alteration,
addition, improvement, repair, replacement, rebuilding or renovation to the Golf Course, the
cost of which is equal to or exceeds Five Thousand Dollars ($5,000.00) and which has a useful
life of more than one (1) year.
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l.04 Cart Barn Storage "Cart Barn Storage" is the area on the Golf Course to be used for
storage of golf carts and related activities.
1.05 City. "City" is the City of Pasco and owner of the Golf Course.
1.06 City Manager. "City Manager" is the person holding the position of the City Manager
of the City of Pasco or his or her designee,
1.07 Clubhouse. "Clubhouse" is the snack bar/restaurant/restroom building located on the
Sun Willows Golf Course premises.
1.08 Combined Management Fee. "Combined Management Fee" is the Fixed
Management Fee and Incentive Management Fee, which constitute the annual consideration
paid to Contractor for the performance of services under this Agreement.
1.09 Comparable Facilities. _"Comparable Facilities" shall mean other local course with
similar green fee rates since green fees per round is best hidex of comparability.
1.10 Compensation. "Compensation" is the direct salaries and wages paid to or accruing for
the benefit of the management staff and all other persons employed by Contractor at the Golf
Course, together with all fringe benefits payable to or accruing for the benefit of such
employees, including employer's contribution under the Federal Insurance Contributions Act
("FICA"), unemployment compensation, or other employment taxes, pension fund
contributions, worker's compensation, group life and accident and health insurance premiums,
retirement, disability and other similar benefits.
1,11 Cost of Goods Sold. "Cost of Goods Sold" is defined as beginning Resale Inventory
plus purchases for Resale Inventory minus ending Resale Inventory.
1.12 Crew. "Crew" is the Golf Course maintenance staff employed by Contractor.
1.13 Director. "Director" is the City Director of Administrative & Community Services, or
such designee, that is responsible for the management of the golf course incident to their
employment with the City.
1.14 Facilities. "Facilities" are the buildings, structures, improvements, irrigation system
and controls, cart paths, fencing, fixtures, trade fixtures, furnishings and equipment, clubhouse,
maintenance facility, maintenance yard, parking lots, utility systems, snack bar/restaurant
facilities, and such other existing and future components of the Golf Course.
1.15 Furnishings and Equipment. "Furnishing and Equipment" are all furniture,
furnishings, trade fixtures, apparatus and equipment, including without limitation, course
maintenance vehicles and equipment, golf carts, driving range pickers and pullers, mats, range
hall baskets, cash registers, rental golf clubs and bags, ball washers, benches, uniforms, kitchen
equipment, appliances, china, glassware, silverware, office equipment, computers, copy
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machines, facsimile machines, telephone systems (not including pay telephones), and other
personal property used in or held in storage for use in the operation of the Golf Course, other
than Resale Inventory.
1.16 GCSAA. "GCSAA" is the Golf Course Superintendents Association of America.
1.17 General Manager. "General Manager" is an employee of Contractor who oversees the
operations of the entire Golf Course and preference given to Class "A" PGA or LPGA golf
professional, unless otherwise approved by the director.
1.18 Golf Course. "Golf Course" or "Premises" or "Course" is the municipal golf course
owned by the City, including but not limited to the land, the driving range, the clubhouse,
maintenance facility, maintenance yard, parking lots, utility systems, snack bar/restaurant
facilities, and such other existing and future components of the Golf Course.
1.19 Golf Course Expenses, "Golf Course Expenses" are all costs and expenses incurred in
the operation, management, and maintenance of the Golf Course, including: (a) all expenditures
incurred by City for the benefit of the Golf Course; (b) the "Combined Management Fee" paid
to Contractor pursuant to Section 6.41 of this Agreement; (c) all expenses specifically
identified as " Direct Costs" in this Agreement; and (d) all other expenses incurred by
Contractor in connection with the Golf Course or this Agreement, which expenses were not
reasonably anticipated by the parties or otherwise provided in this Agreement and which are
consistent with the operation of a golf course and were approved in writing by the Director.
1.20 Gross Revenues. "Gross Revenues" are all money received as a result of the operation
of the Golf Course and the sale of goods and services at the Golf Course, determined on a
modified accrual basis in accordance with generally accepted accounting principles consistently
applied. The deposit of Gross Revenues shall include, but are not limited to all green fees;
rental fees for golf carts, golf clubs and bags, and other rental items; range balls; resident card
fees, reservation fees; fees for golf handicap service: rental and concession payments; food and
beverage sales; liquor sales; revenue generated from space rentals and from golf-related
meetings, banquets, parties, tournaments, and other group gatherings; merchandise sales; golf
instruction fees; revenues from golf schools; gross receipts received by licensees or
concessionaires; and all other revenues generated by the Golf Course. Gross Revenues shall be
reduced by any cash refunds or credits allowed on returns by purchasers. Gross Revenues shall
not include the following: (a) the amount of any gratuities to Golf Course employees, or
service charges added to customer billings which represent gratuities to Golf Course employees
(b) proceeds of any borrowings by Contractor or City; (c) initial operating funds in the Bank
Account and funds subsequently provided by City to satisfy the working capital needs of the
Golf Course; (d) refunds for the value of merchandise, Supplies or equipment returned to
shippers, suppliers or manufacturers; and (e) unearned or deferred revenues such as gift
certificates/cards, nonrefundable tournament and event deposits, and pre-paid driving range
fees 0 proceeds from insurance; any amount received by Contractor in connection with any
claim, demand, or lawsuit unless the amount recovered would have been included in gross
revenue initially g) sales tax received or any other tax received from the customer.
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1.21 Impositions. "Impositions" are all taxes and assessments (including without limitation
real property taxes and assessments, possessory interest taxes, and personal property taxes),
water, sewer or other similar rents, rates and charges, levies, license fees, permit fees,
inspection fees and other authorization fees and charges, which at any time may be assessed,
levied, confirmed or imposed on the Golf Course or the operation of the Golf Course
1.22 Insurance Requirements.� "Insurance Requirements" are all requirements of each
insurance policy, and all orders, rules, regulations and other requirements of the National Board
of Fire Underwriters (or any other body exercising similar functions) applicable to the Golf
Course or the operation of the Golf Course.
1.23 Invitee. "Invitee" is anyone present on the Golf Course for golfing, dining or other
lawful purpose.
1.24 Legal Requirements. "Legal Requirements" are all laws, statutes, ordinances, orders,
rules, regulations, permits, Iicenses, authorizations, directives and requirements of all
governments and governmental authorities, which now or hereafter may be applicable to the
Golf Course or the operation of the Golf Course, including, but not limited to, the Americans
with Disabilities Act and implementing regulations as well as other federal, state and local laws
and regulations governing access and all federal, state and local laws and regulations pertaining
to the storage, use and disposal of "hazardous or toxic wastes, substances or materials" as
defined by applicable law.
1.25 Maintenance Yard. "Maintenance Yard" is the area utilized for the storage and
maintenance of equipment and supplies including underground devices, storage facilities, and
related items.
1.26 Maintenance Standards. "Maintenance Standards" are the standards generally
accepted in the industry and as defined by this Agreement for the maintenance, care and
protection of the Golf Course.
1.27 Operating Net Cash Flow. "Net Cash Flow" is the difference between the Gross
Revenue and all expenses, including Direct Costs, other operating expenses, debt service for all
debt in existence on the Effective Date, additional debt service to the extent agreed to in writing
by both parties, and Fixed and Incentive Management Fees.
1.28 Operating Year. "Operating Year" is the period frotn the Effective Date of January 1,
2012 thru December 31, 2012 and each following twelve (12) calendar month period for the
terfn of the Agreement.
1.29 PGA/LPGA. "PGA" is the Professional Golfers' Association of' America. "LPGA"
shall mean the Ladies Professional Golfers' Association of America.
1.30 Premises. *'Premises" is the Golf Course as defined above.
1.31 Pro Shop. "Pro Shop" is the golf professional shop located in the Clubhouse.
6
1.32 Recognized Clubs. "Recognized Clubs" are those clubs that consider the Golf Course
home.
1.33 Resale Inventory. "Resale Inventory" is Pro Shop merchandise and food and beverage
items.
1.34 Senior Golfers. "Senior Golfers" are golfers who are at least fifty five (62) years of
age.
135 Superintendent. "Superintendent" is an employee of Contractor who is in charge of
Golf Course maintenance, is a Class A member of the GCSAA and has a State Applicator
Certificate ("QAC") in categories B and F.
1.36 Supplies. "Supplies" are consumable items not for Resale and used in or held in
storage for use in the operation of the Golf Course, including but not limited to, scorecards and
cart tickets, driving range balls, locker room and bathroom supplies, towels, fuel, cleaning
materials, fertilizers, pesticides, seed, maintenance parts and supplies, office supplies, and other
similar items.
1.37 USGA. "USGA" is the United States Golf Association.
2.0 TERM.
2.01 Term. The initial term of this Agreement shall commence on January 1, 2012 (the
"Effective Date") and expire on December 31, 2015, unless it is tenninated or extended
pursuant to the terms of this Agreement.
2.02 Extension.
2.02.1 This Agreement shall be automatically renewed for two (2) consecutive five (5)
Year terms upon the same terms and conditions as provided in this A reement except
Section 6, which shall be subieet to mutual agreement of the parties. The City or
Contractor may, however, give notice to the other of its intent not to automatically
renew the extension of this Agreement by written notice to the other of its intent not to
renew the extension of this Agreement not less than (12) months prior to the expiration
of the current term. The parties shall negotiate diligently and in good faith, during the
Exclusive Negotiating Period described in Section 2.02.2,to determine the Management
Fee as provided in Section 6 below, applicable to the Renewal Period and extension of
this Agreement in the event either party gives notice of their intent not to renew the
extension of this Agreement, or the extension of the Agreement upon expiration of the
original and renewal terms hereof, upon such terms and conditions as the parties may
mutually agree..
2.02.2 Exclusive Negotiating Period. The negotiating period under this Agreement
shall commence not later than twelve (12) months prior to the termination of the initial
7
term of the Agreement. Either party may give written notice to the other party of its
interest in pursuing negotiations for the extension of the Agreement. Upon delivery of
such notice, the parties shall enter into an exclusive good faith negotiating period (the
"Exclusive Negotiating Period") of up to one hundred and eighty (180) days (or such
longer period as the parties may agree) from the date of notice to agree upon terms for
an extension of the Agreement or to conclude that the Agreement will not be extended.
During the Exclusive Negotiating Period, the City shall not solicit, market or negotiate
with any other person or entities, other than the Contractor, regarding the services set
forth under this Agreement, or solicit or entertain bids or proposals to do so.
2.02.3 Continuation ofAgreernent. If this Agreement is not extended, Contractor shall,
if requested by City, continue to provide all services pursuant to this Agreement and
subject to the then current terms and conditions of this Agreement on a month-to-month
basis for up to twelve (12) months if determined necessary by City in order to give City
sufficient time to select a new Contractor. City may terminate the month-to-month
agreement by providing thirty (30) days written notice to Contractor.
3.0 MANAGEMENT OF GOLF COURSE.
3.01 Retention of Contractor.
3.01.1 Role of the Contractor. Subject to the terms of this Agreement, City hereby
retains Contractor as an independent contractor, and Contractor agrees, to: (i)
implement the policies, standards, and schedules for the operation and maintenance of
the Golf Course and all matters affecting customer relations, in accordance with this
Agreement, including; (ii) hiring, training, and supervising the General Manager, Golf
Course Superintendent, and Food Service Manager (collectively "Management Staff')
and all Golf Course employees; (iii) supervise and direct all phases of advertising, sales,
and business promotion for the Golf Course; (iv) establish accounting and payroll
procedures and functions for the Golf Course in accordance with City policies; and (v)
procure such equipment as directed and authorized by the City, which shall be the sole
property of the City, and to maintain all equipment in good working order and operate
such as necessary and appropriate for the profitable and efficient operation of the Golf
Course. The costs of undertaking the services above are reimbursed pursuant to Section
5 of this Agreement as a Direct Cost. Contractor agrees to work with the City to adjust
Direct Cost budget, as necessary, to provide for a profitable operation and a positive Net
Cash Flow.
3.01.2 Goal of A mreement. It is the intent and goal of the City of Pasco that the Golf
Course be operated in a professional, efficient and productive manner that shall provide
for the highest quality of experience for Invitees of the Golf Course and Food and
Beverage Operations as found in the comparable golf courses, achieve the desired
results of an effective maintenance program on the Golf Course and Clubhouse, and
achieve the budgeted results for the Golf Course.
8
3.02 Overall Responsibilities of Contractor. Contractor shall perform the following
services, or cause the same to be performed for the Golf Course, and all expenditures of
Contractor and costs and expenses incurred by Contractor in performing these services shall be
Direct Costs:
a) Consummate arrangements with intended users of the Golf Course, subject to
the terms of Section 3.03 below.
b) Enter into such contracts no later than the effective date of this agreement for the
furnishing of utilities and building maintenance and other services to the Golf
Course;
C) Make all repairs, decorations, replacements, additions, revisions, alterations and
improvements to the Golf Course as shall be reasonably necessary for
maintenance of the Golf Course in good order, condition and repair, subject to
the terms of Section 3.05 of this Agreement;
d) Incur such expenses as shall be necessary for the proper operation and
maintenance of the Golf Course, including without limitation purchase or rental
expenses for Furnishings and Equipment. Where contractor leases equipment
on behalf of the City, with the City's prior written consent, but in contractor's
name, City agrees to assume remaining payments if contractor's period of
operation is less than the period of the lease so long as equipment remains in
possession of the City.
e) Maintain a level of Resale Inventory necessary for the effective operation of the
Golf Course consistent with the terms of Section 3.03,1;
f) Apply for, and obtain and maintain, all licenses and permits required of
Contractor in connection with the operation and management of the Golf
Course, including the on-sale liquor license which shall be obtained in the
Contractor's name; and City agrees to execute any and all applications and such
other documents as shall be reasonably required and to otherwise cooperate, in
all reasonable respects, with Contractor in the application for, and obtaining and
maintenance of, such licenses and permits;
g) Do, or cause to be done, all such acts and things in and about the Golf Course as
shall be reasonably necessary to comply with all Insurance Requirements and
Legal Requirements, and Contractor shall not knowingly permit any illegal
activities to be conducted on or about the Premises;
h) Pay all Golf Course Expenses, Impositions and insurance premiums, whether
incurred by City or Contractor, when due;
0 Implement the Marketing and Promotional Plan for the Golf Course described in
Section 5.02(f);
9
j) Maintain a level of Supplies necessary for the effective operation of the Golf
Course consistent with the terms of Section 3.01.2.
3.03 Golf Professional Services. Contractor shall, as a Direct Cost, provide golf starter
services; provide Course marshaling services; sell and rent golf equipment; sell golf-related
clothing and supplies; provide instructional services in the playing of golf; rent golf carts; and
operate the driving range. Such services shall be provided by or under the on-Premises direct
supervision of the Golf Professional.
3.03.1 Pro Shop and Merchandise. The Pro Shop shall be open during the normal
operating hours of the golf course.
A. Inventory. Contractor shall procure and maintain in the Pro Shop such
inventory of golf merchandise as deemed necessary or appropriate to
adequately meet public demand and consistent with the goal in Section
3.01.2.
B. Mark Down of Merchandise. Merchandise that can reasonably be
classified as "stale" or "unsellable" may be marked down. After six (6)
months, if Contractor determines that any aged merchandise in the Pro
Shop cannot be sold or should not be sold because of the reputation or
image of the Pro Shop, then Contractor may sell the merchandise at less
than cost and include the payment for the merchandise in the Gross
Revenues.
3.03.2 Golf Instruction. Contractor shall provide for golf instruction by qualified
instructors supervised by the Golf Professional. All instructors shall be PGA or LPGA
Class A golf professionals or apprentices, unless otherwise approved by Director. All
golf instructors shall be employees of Contractor, unless Contractor proposes an
alternative plan that is approved by the Director. Contractor shall cause all golf
instructors to comply with the rules and regulations consistent with the goal in Section
3.012. It is expected that the Golf Professional and instructors will provide tips and
mini-lessons at no cost to golfers as appropriate.
A. Availability. Contractor shall use best efforts to have a PGA or LPGA
Class A golf professional or apprentice, available on the Premises to
answer questions and address customer concerns during the primary golf
season.
B. City Recreation Classes. The Contractor shall work in conjunction
with the Director to provide services for City golf programs at the
driving range, putting greens and Course.
C. ,Junior Golf Programs. The Contractor shall encourage and support
junior golf programs such as LPGA Girls Golf and First Tee.
10
3.03.3 Golf Carts. Contractor shall procure by lease on behalf of the City and maintain
in good condition power-driven golf carts in sufficient numbers to meet the public
demand. The Director shall have the right, in Director's sole and absolute discretion, to
require a change in the number or types of golf carts in use at the Golf Course;
provided, however, that the City shall increase or decrease the applicable Direct Cost
Budget(s) reasonably to account for resulting increased or decreased Direct Costs. Prior
to procuring golf carts, Contractor shall give Director written documentation identifying
the type of golf cart, features of golf carts, and proposed lease terms. Contractor shall
lease golf carts in accordance with Director's written approval. All carts shall be 4-
wheel, and shall be equipped with canopies and windshields. Contractor may prohibit
the use of golf carts on the Golf Course whenever weather conditions expose the user to
danger or the Golf Course to damage. Contractor shall either employ an on-site
mechanic or secure by contract an available mechanic capable of promptly repairing
and maintaining golf carts.
3.03.4 Driving._Range. Contractor shall operate and manage all driving range
operations, and procure and maintain all equipment and facilities necessary and
appropriate to meet the goal set forth in Section 3.01,2. Driving range balls shall be of
high quality, and all cracked and worn range balls shall be removed in a timely manner.
3.03.5 Golf Course Starter Services. Contractor shall render and provide Golf Course
starter services including, but not limited to, collecting all green and tournament fees in
accordance with City cash handling procedures, taking reservations from the telephone,
online and at the Golf Course and recording the reservations on starter sheets, placing
golfers' names on a call sheet as necessary and appropriate, sending golfers to the tee
and starting them off at proper intervals, receiving requests from groups for
tournaments, booking tournaments and collecting appropriate fees prior to each
tournament's starting date, coordinating tournament food and beverage needs, taking all
actions as necessary and appropriate to speed play on the Golf Course, entering each
golfer's name on the automated tee sheet to the extent feasible, selling/issuing resident
cards, verifying resident status when checking in golfers and issuing a receipt to each
golfer upon payment of the applicable green fee. Contractor shall install a Point of Sale
system that tracks all rounds played and fees collected by fee category on a daily basis.
Such information shall be made available for review by the Director, as requested.
3.03.6 Marshaling: Tirane. Contractor shall procure the services of marshals at such
times and in such numbers as necessary and appropriate to expedite play and ensure
compliance with all rules and regulations consistent with the provisions of Section
3.01,2.
3.03.7 Suspension of Play. Temporary suspension of play shall be determined by
Contractor in cases where weather or other conditions expose the user to danger or the
golf course to damage.
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3.04 Facilities Maintenance Services. The parties acknowledge that the premises are
public property which the City has a responsibility to ensure are used in a manner which
effectively serves the public. Accordingly, the City has a greater interest than most landlords in
ensuring the quality of the maintenance and operation of the premises. At all times, as a Direct
Cost, Contractor shall maintain and operate the Clubhouse, including the banquet facilities,
snack bar, pro shop, Clubhouse restrooms, on-course restrooms and cart barn and all other
facilities and services offered in connection therewith in a manner equal to or better than
comparable municipally-owned golf courses in the region, and furnish and maintain a standard
of service at least equal to the class of similar businesses in the City and in adjacent
communities during the entire term of this agreement. Contractor shall keep all fixtures,
furnishings and equipment within the facilities clean, neat, safe, and sanitary, in good order and
in a manner equal to or better than the comparable golf courses in the region. Contractor shall
maintain and operate the Clubhouse and other facilities reasonably in accordance with the
highest commercial standards of cleanliness and shall keep the Clubhouse and other facilities
clean and free from rubbish.
Contractor shall, during the term of this Agreement maintain and keep in good order, condition
and repair the interior nonstructural portions of the Pro Shop, snackbar/restaurant, maintenance
facilities, Clubhouse and other facilities, including, but not limited to, the following: the interior
surface of exterior walls; all windows, doors, door frames, and door closures; all plate glass,
storefronts and showcases; all carpeting and other floor covering; HVAC, all electrical systems,
and equipment; the grease trap; and all interior plumbing and sprinkler systems, doors, door
locks, plate glass, display windows, window casements, exterior restaurant light fixtures, light
bulbs, ballast transformer and electrical panel if any, installed therein. Contractor expressly
agrees that the use of roof areas shall be limited to ingress for maintenance purposes only, and
that said roof areas shall not be used for storage of inventory or for any other use. All costs
associated with cleaning and maintenance of the Clubhouse and other facilities shall be Direct
Costs.
Contractor agrees to enter into preventative and regular maintenance contracts, with providers
approved by Director, for services to include, but not be limited to, pest control, refrigeration,
window cleaning, carpet cleaning, hood cleaning, and grease trap. All costs associated with these
service contracts shall be Direct Costs.
3.05 Grounds Maintenance Services. Contractor shall provide grounds maintenance
services to the Premises in compliance with the City approved annual maintenance plan,
including, but not limited to, the obligation to mow, edge, trim, overseed, fertilize, aerate, sod,
change cups, service tees, top-dress, raise divots, rake traps, spray, spot irrigate, syringe and
renovate turf and shrub areas, as well as to provide weed, disease and pest control, litter control
and rubbish removal, parking lot sweeping, tree maintenance, maintenance of irrigation
systems including mainlines, pumps, boosters and controllers, to keep swales in good repair
and to provide the necessary and appropriate maintenance of any appurtenant structures and
equipment, and to maintain the lakes. Contractor shall replace or change any supplies,
materials, or procedures used by Contractor that are found reasonably objectionable by
Director, within five (5) calendar days after receipt of Director's Smitten request for such
replacement or change. Contractor shall comply with all applicable local, state and federal
12
clean water regulatory requirements, including but not limited to all federal NPDES
requirements.
3.05.I Chemical Herbicides and Pesticides. Contractor shall ensure that employees are
trained and knowledgeable about best management practices for using fertilizers,
herbicides and pesticides to prevent any Hazardous Materials release and how to handle
any such accidental release. Contractor shall obtain any required Washington State
Department of Agriculture pesticide applicator licensing, permits and submit any
required reports related to the use of permitted biocides, defoliants, chemical fertilizers,
pesticides, herbicides or other agri-chemicals. if requested by the City, an Integrated
Pest Management and Chemical Application Management Plan (IPM-CHAMP) will be
jointly developed by the City and the Contractor. The cost to develop and implement
the plan will be a Direct Cost.
3.05.2 Water. Contractor shall not cause any ponding on the Premises or any flooding
on adjacent land. Unless otherwise specifically directed by City, Contractor shall not
engage in any activity that causes any change, disturbance, fill, alteration or impairment
to the bed, bank, canal or channel of any natural water course, wetland or other body of
water on, in, under, or about the Premises; nor shall Contractor engage in any activity
that would pollute or degrade the surface or subsurface waters or result in the
diminution or drainage of such waters.
3.05.3 Protection of Utilities. At all times during the Term of this Agreement,
Contractor shall use its reasonable best efforts to protect the facilities of utilities located
on the Golf Course from any damage, injury or disturbance. If Contractor or any of its
agents or Invitees damages, injures or disturbs any of the foregoing facilities, Contractor
shall immediately notify City of that occurrence.
3.05.4 Trees and Other Plant Materials. Contractor shall maintain all trees and other
plant materials on the Golf Course. Contractor shall not remove or destroy any tree or
other plant materials on the Premises without the prior written approval of the Director.
In the case that a tree, or portion of a tree, has fallen on the Golf Course and becomes a
safety hazard, Director's verbal approval is acceptable for removal or pruning. All
pruning shall be consistent with City guidelines and the International Society of
Arboriculture Tree Pruning Guidelines. Contractor shall not plant any trees or other
plant materials on the Premises that are not included in the Course Maintenance Plan,
without the prior written approval of the Director.
3.05.5 Maintenance Personnel. Contractor shall employ and maintain in its employ a
Golf Course Superintendent and Crew at the Premises unless otherwise approved by the
director. Contractor shall employ sufficient personnel to perform all work required.
3.06 Parkins; Lot Maintenance Services. Contractor shall keep all parking lots on the
Premises in a clean and good condition, and shall provide normal (non-capital) parking lot
maintenance services, including, but not limited to daily trash removal and landscaping
maintenance. All costs of such parking lot maintenance will be Direct Costs.
13
3.07 Food and Beverage Services. Contractor shall have the exclusive right and obligation
to provide food and beverage services at the Golf Course, the expenses for which shall be
Direct Costs. The food and beverage service shall include operation of a snack bar, which
includes a full service bar, indoor dining facility, and at least one mobile cart providing food
and beverages on the Golf Course when usage dictates. Director shall also have the right to
pen-nit, upon such conditions as may be reasonably proposed, operation of an outdoor grill or
other type of outdoor food service. Fending machines may be installed with Director's
approval. Contractor shall not permit the sale of food and beverage at the Golf Course from
outside entities without having first obtained Director's approval, which approval shall not be
unreasonably withheld.
3.07.1 Hours ecation. Contractor shall keep the Food Service Facilities open for
business during the hours specified by the City.
3.07.2 Management and Other Food Service Staff. Contractor shall hire a professional
manager ("Food Service Manager") to manage and conduct clay-to-day operations at the
Food Service Facilities. Contractor shall also hire other food service personnel in
numbers sufficient to satisfy customer demands for food service. The Food Service
Manager, or his or her designee, shall be present on the Premises during all times the
Food Service Facilities are open for business.
3.07.3 Health Certificates. Contractor shall comply with all local, state and federal
health laws, regulations and procedures that are applicable to operation of the Golf
Course and Food Service Facilities.
3.07.4 Licenses. Contractor shall obtain and maintain for the terra of this Agreement
any and all permits and licenses required by any federal, state or local governmental
agency in connection with the services to be provided by Contractor under this
Agreement, including the on-sale general liquor license and a City business license.
Acquisition of all licenses and permits shall be considered a direct cost that shall be
reimbursed as part of the Direct Cost Budget. Contractor shall use its best efforts to
notify all contractors and vendors of their obligation to obtain a City business license.
3.07.5 j, a v of Service. The food and beverage services provided at the Golf Course
shall be consistent with the goal set forth in Section 3.01.2. Contractor shall provide
food and beverage service in accordance with all Legal Requirements and Insurance
Requirements and reputable business standards. Contractor shall ensure that food and
beverages are kept in stock sufficiently to meet customer demand.
3.07.6 Alcohol Sales from Cart(sj. City reserves the right to prohibit or limit the sale
of alcoholic beverages from the food and beverage cart(s) on the Golf Course if; in the
Director's sole and absolute discretion, Director determines that such sales are leading
to behavior which is disruptive to or inconsistent with the proper functioning of the Golf
Course.
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3.07.7 Existing Evens, Contractor acknowledges that the current food and beverage
service operator may have booked events or reserved dates for events occurring after
the Effective Date. Contractor agrees to work in good faith with City to provide food
and beverage services related to those events. Contractor acknowledges the
commitment by the City to the Washington Interscholastic Activities Association to
host the State cross country championships on an annual basis as scheduled by the
WIAA and the City.
3.07.8 Future Events. Contractor agrees not to book any events at the Golf Course for
dates after the initial term of this Agreement or any extension without the prior approval
of the Director.
3.08 Personnel.
3.08.1 General. Contractor, as a Direct Cost, shall employ all of the employees of the
Golf Course and set all terms and conditions of the employment. Contractor shall make
all decisions relating to the hiring of employees, the employment of its employees and
the direction of its work force. The number of Contractor's employees shall be no more
than reasonably necessary to efficiently operate the Golf Course. Contractor shall
recruit, hire, train, discharge, promote and supervise the Management Staff of the Golf
Course defined as the General Manager, Superintendent of the Golf Course, Food
Service Manager, and all other employees of the Contractor. All employees of the Golf
Course shall be properly qualified for their positions. Contractor may at its expense
assign management trainees to the Golf Course, who shall remain under supervision of
the Contractor's on-site Management Staff. If the management trainee is performing
work that would normally be performed by other personnel, the costs shall be a direct
cost. Contractor shall provide reports showing all employees and their job titles, as
requested by Director. Contractor's Management Staff shall not be assigned to work at
other golf courses managed or operated by the Contractor without the written approval
of the Director.
Contractor shall retain at all times on the Premises during hours of operation a manager
who will be responsible for the Golf Course in matters pertaining to the performance of
the duties and obligations in this Agreement. Contractor shall during operating hours
have sufficient personnel on the Premises to provide a level of service in accordance
with Section 3.01.02 and to provide a level of service customary in the industry.
All employees shall be identifiable by wearing a shirt or jacket with a course logo and
an easily readable name badge. Employees of the Contractor shall be courteous and neat
in appearance at all times. If any employee fails to meet this standard, is negligent in
performance of his/her responsibilities, and Contractor is unable after a reasonable
period of time to bring the employee up to this standard, Contractor shall take
reasonable actions to remove the employee from employment at the Golf Course.
3.08.2 Compensation. Compensation of Contractor's employees shall be no greater
than that paid at other golf courses managed by Contractor, unless specifically approved
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by the Director, taking into consideration the budget, recognizable differences in scope
of work and cost of living at other golf courses. All employees of Contractor, other
than the Management Staff, shall use a time clock to keep track of the hours worked.
3.08.3 Employee Benefits. Contractor shall have the obligation to provide all legally
mandated employee benefits to its employees plus standard company provided benefits
for all full time employees included and fully disclosed in the Annual Approved
Budget, or if not part of the budget, then upon prior written approval of the Director.
The allocable share of such employee benefits accrued while working at the Golf
Course shall be a Direct Cost.
3.08.4 Tem .orarv_Assignment of Other Contractor Personnel. If the positions of
General Manager, Course Superintendent, or Food Service Manager are not filled for
whatever reason, Contractor shall permanently fill those positions within 90 days of
vacancy. Upon approval of the Director, Contractor may temporarily assign to these
positions the staff of other golf courses and country clubs operated or managed by
Contractor. During such time as these employees are temporarily assigned to the Golf
Course, all such employees will be paid their regular Compensation, and the pro-rata
share of such employees' compensation equal to the actual time such employees worked
at the Golf Course shall be a Direct Cost.
3.09 Management Staff, The Management Staff shall be the following positions, which
may be combined with City approval, that will be solely dedicated to and resident at the Golf
Course:
3.09.1 The General Manager, Golf Course Superintendent, and Food Service Manager.
City shall approve, which approval shall not be unreasonably withheld, the
Management Staff before hire and shall be infonned prior to the termination, except
termination for cause, or transfer of any of the Management Staff. Contact information
(name, cell phone number and email address) for all Management Staff shall be
provided, in writing,to the City and shall be current at all times.
A. General Manager. The General Manager of the Golf Course shall be
responsible for the day-to-day management and operation of the Golf Course.
The General Manager must have at least five (5) years experience as a golf
course operations manager or assistant manager. General Manager should have
at least two (2) years experience in supervising banquet operations; and have at
least three (3) years of experience as a golf professional unless otherwise
approved by the Director. The General Manager shall be reasonably available
during normal working hours to meet with the Director. After normal working
hours, the General Manager shall be reasonably available to appear at the Golf
Course or City meetings, if deemed necessary by the Director. The General
Manager shall be responsible for golf instruction, golf services, driving range
operations and the Pro Shop.
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B. Superintendent, The Superintendent for the Golf Course shall have a Qualified
Applicators Certificate ("QAC") in categories B and F unless otherwise
approved by the director. Prior experience as a golf course superintendent is
desired. The Superintendent shall be responsible for the maintenance of the
buildings, equipment and grounds of the Golf Course.
C. Food Service Manager. The Food Service Manager shall be responsible for the
Food Service Facilities and providing food and beverage, tournament and
banquet services. The Food Service Manager shall report directly to the General
Manager. The Food Service Manager shall have at a minimum a two-year
college degree or equivalent and at least two (2) years of food and beverage and
banquet and catering supervisory experience.
D. Notification to City of Defect or Illegal Activity. Contractor shall
immediately notify City upon discovering a possible workmanship or material
defect in any structure or improvement on the Golf Course or upon discovery of
any unauthorized dumping, disposal or illegal use or activity on the Golf Course.
3.10 Equipment. Supplies and Materials. Contractor shall procure and maintain (as a
Direct Cost) all necessary and appropriate equipment, supplies and materials of good quality
and in sufficient number to fulfill the maintenance requirements of this Agreement, but
expenditures, in total, shall not exceed the amounts allocated in the Annual Direct Cost Budget
without the prior written notification to the Director. The required equipment, supplies and
materials shall be the sole property of the City, and shall include,but not be limited to:
a) All equipment necessary and appropriate to operate the Golf Course;
b) All necessary and appropriate gas, oil, maintenance and operating supplies, and
spare and replacement parts for all equipment used at the Golf Course;
C) All necessary and appropriate topdressing, seed, fertilizers, pesticides,
fungicides, insecticides and herbicides for maintenance of the Golf Course and
other landscaped areas on the Premises and in compliance with Section 3.05;
d) Parts, supplies and equipment necessary for the repair and maintenance of all
Golf Course irrigation systems;
e) Tee towels, soaps, ball washers, putting green cups and flags, benches, trap
rakes, tee markers, tee mats, trash receptacles, trash receptacle liners, cleat
brushes, distance markers on sprinkler heads and all other pertinent golf course
equipment;
fa Materials for the installation and maintenance of French drains;
g) Sand for traps on an as-needed basis; and
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h) Procurement of all necessary retail and concession inventory and consumable
supplies such as janitorial cleaning supplies, paper products, soap, etc. This
does not include Cost of Goods Sold.
3.11 Intrusions. Contractor shall treat non-invitee users with consideration and courtesy
even when they may be wrongfully on the Premises, but shall have the right to deny use of the
Premises for unauthorized purposes and to bar future access to the Golf Course for an indefinite
or definite period of time. City reserves the right from time to time during the term of this
Agreement, to promulgate such reasonable rules and regulations concerning the use of the
Premises and any part or parts thereof, as City, in its sole discretion, shall deem appropriate.
3.12 Improvements. Except in the event of an emergency threatening imminent injury to
persons or damage to property, Contractor shall make no improvements, additions, alterations
or changes to the Golf Course ("Improvements") in excess of which would meet the definition
of Capital Expenditure in Section 1.03, unless Contractor: (i) obtains the prior written approval
of the Director, which approval may be granted or withheld in the sole and absolute discretion
of the Director; (ii) complies with such terms and conditions as may be imposed by the
Director; (iii) secures all applicable licenses, permits and other governmental approvals for the
Improvements; and (iv) causes the Improvements to be designed and constructed so as to be
consistent with the architecture and design of the currently-existing Golf Course, unless
otherwise specifically approved by the Director in writing. Any such Improvements shall be
shown on as-built drawings that shall be delivered to the Director within thirty (30) days of
completion of the work.
3.I3 Days and Hours of Overation. The minimum hours of operation shall be Dawn to
Dusk. Contractor shall make no changes in the days and hours for operation of the Premises
without the prior written approval of the Director.
3.14 Technology.
3.14.1 Technology Systems. Contractor, as a Direct Cost, shall procure and maintain
as the sole property of the City, telephones, wiring, computers, software, licenses, data
circuits, voice circuits, Internet circuits and all equipment necessary and appropriate to
operate and support telephone communications to and within the Premises, automated
tee sheet and starter functions, Point-of-Sale for all Pro Shop and Food and Beverage
operations, and a website which provides public, on-line access to golf reservations.
Contractor shall use such systems to market, record all Golf Course and Food and
Beverage sales, retain customer and sales transaction data and produce all documents
and reports necessary to effectively operate the Golf Course and comply with the City's
reporting and auditing requirements with capability for preparing monthly activity
reports to be pro vided to the City. Technology systems shall satisfy City's and other
government requirements for security and internal controls, including but not limited to,
security of credit card and other customer data. Such requirements shall be
communicated to Contractor and City shall make prompt final detennination as to the
extent of compliance required and approval for such costs.
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3.14.2 Scoring Terminal. A scoring tenninal shall be provided in a convenient location
at the Clubhouse.
3,14.3 Security of Data. Contractor shall notify the City immediately upon any
known or suspected loss, theft or disclosure of City data, including but not limited to
loss of customer personal or credit data,
3.14.4 Security Procedures. Contractor will be solely responsible for the selection,
implementation, and maintenance of security procedures, anti-virus, and similar
defensive measures and policies that are sufficient to ensure that (a) Contractor's
technology systems are secure and used only for authorized purposes; and (b)
Contractor's business records and data, and any data kept on behalf of the City, are
protected against improper access, use, loss, alteration or destruction. All credit card
systems shall meet PCI standards to the extent available at a cost acceptable to the city.
3.15 Waste Disposal. Contractor shall provide adequate trash facilities on the Premises
and shall promptly empty the containers regularly. Contractor shall not permit the burning,
dumping or other disposal on, under or about the Premises of landfill, refuse, hazardous
materials or other materials, with the exception of Golf Course clippings that can be dispersed
on the Golf Course. Contractor shall dispose of all wastes in compliance with Legal
Requirements and Environmental Laws. This disposal expense shall be a direct cost.
3.16 Ernergenc. Services. Contractor shall provide City's Director with contact
information for all Management Staff in order that they can respond to any emergency on a
twenty-four hour basis. During periods of severe inclement weather conditions, Contractor will
provide reasonably sufficient personnel for the purpose of performing tasks necessary to
prevent serious damage to Golf Course improvements and Facilities. In the event either party
becomes aware of an emergency, they shall promptly notify the other to determine immediate
actions necessary and authorization for emergency expenditures. Costs for emergency services
shall be a direct cost.
3.17 Nondiscrimination. During the performance of this Agreement, Contractor and its
subcontractors shall not unlawfully discriminate against any employee or applicant for
employment, or customer, because of race, color, ancestry, religion, sex, national origin,
marital status, age, physical disability, mental disability, medical condition or sexual
orientation. Equal opportunity for employees extends to, but is not limited to, recruitment,
compensation, benefits, layoff, termination, and all other conditions of employment.
Contractor and subcontractor shall ensure that the evaluation and treatment of their employees,
applicants for employment and Invitees are free of such discrimination. Contractor and
subcontractors shall comply with the provisions of all applicable State and Federal laws.
Contractor and its subcontractors shall give written notice of their obligations under this clause
to labor organizations with which they have a collective bargaining or other agreement.
Contractor shall include the nondiscrimination and compliance provisions of this clause in all
subcontracts to perform work under this Agreement. Contractor shall permit access by
representatives of the Federal and State agencies, and City upon reasonable notice at any time
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during normal business hours, but in no case less than 24 hours' notice, to such of its books,
records, accounts and other sources of information and its facilities as said Department or City
shall require to ascertain compliance with this clause.
3.18 Drug Free Workplace. Contractor shall certify that it has complied with all State and
Federal Drug Free Workplace guidelines and requirements.
3.19 S�. Contractor, as a Direct Cost, shall be responsible for installing and maintaining
all signage necessary for the Golf Course operations. Contractor shall not post outdoor signs at
or on the Premises without the prior written approval of the Director, as well as the approval of
the Community Development Department, as required by law, with the exception of temporary
directional or advisory signs (e.g. "Front entrance closed; use side entrance"; "Temporary no
parking area"; "Wet Steps.").
3.20 Publicity. Any commercial advertisements, press releases, articles, or other media
information not provided for in the Annual Marketing Plan and Budget shall be subject to the
prior approval of City, which approval shall not be unreasonably withheld.
3.21 Utilities. Contractor shall ensure utility services, including but not limited to, water,
gas, electricity, sewer, and waste disposal is provided to effectively operate the Golf Course.
Contractor's costs for such utility service, as well as Contractor's costs incurred in correcting
any defect, deficiency or impairment of any utility system, water system, water supply system,
drainage system, water system, heating or gas system or electrical apparatus or wires serving
the Premises, shall be Direct Costs.
3.22 Safer- and Security. Contractor shall exercise caution at all times for the protection of
persons and property. Contractor shall install adequate safety guards and protective devices for
all equipment and machinery. Contractor shall post appropriate caution signs to alert personnel
or the public of unsafe conditions. Contractor shall comply with all applicable laws relating to
safety precautions. Contractor shall iinmediately contact director to discuss any unsafe
condition of the Premises, as well any unsafe practices occurring thereon. Promptly after the
occurrence of injury or damage to persons or property occurring on the Premises, Contractor
shall submit to Director a report on the incident. Contractor shall cooperate fully with City in
any further the investigation of any injury or damage to persons or property occurring on or
about the Premises. The Golf Course contains appropriate security systems, security alarm
systems, motion detection sensors for after hours control, and locks for the maintenance yard
and perimeter gates. Contractor shall consult with the City to capitalize on opportunities to
participate in City contracts for the above-mentioned security systems. The alarm system at the
Golf Course shall be tied into an offsite monitoring station. City may require Contractor, as a
Direct Cost, to install and maintain video monitoring in cash operation areas. if video
monitoring is installed, Contractor shall comply with applicable records retention policies.
3.23 Use of Premises: Restrictions. Unless Contractor has obtained the prior written
approval of the Director, which approval may be withheld or conditioned in the sole and
absolute discretion of the Director, Contractor shall not conduct, authorize or permit any events
or activities requiring the exclusive use of the Premises or any portion thereof, other than
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normal shotgun tournaments. Contractor shall cooperate with City in allowing City to have
access to the Clubhouse for use for City recreation programs, provided that any costs to
Contractor in doing so shall be Direct Costs and further provided that such use shall not
negatively impact Gross Revenues.
3.24 Prices and Fees.
3.24.1 Goods and Services. Contractor shall at all times maintain a complete list or
schedule of the prices charged for all food and beverage supplied to the public on or
from the Premises. Such list or schedule of prices shall be provided to the Director with
the Annual Plan. The prices shall be fair and reasonable based on the following
considerations: (a) that the operation of the Premises is intended to serve the needs of
the public for the goods and services, supplied at a fair and reasonable cost; (b) that the
prices charged should be comparable to prices charged for similar goods and services in
the general area; and (c) that the margin of profit should be reasonable considering the
cost of providing the goods and services in compliance with the obligations of this
Agreement. If the Director notifies Contractor that the prices being charged are not fair
and reasonable, Contractor shall have the right to confer with the Director and justify
such prices. Following reasonable conference and consultation thereon, Contractor
shall make such price adjustments as may be ordered by the Director; provided,
however, that in no event shall Contractor be required to price any item below its
wholesale cost.
3.24.2 Golf Course Fees. City hereby reserves the right to establish the schedule for
green, driving range, golf cart rental, lesson and resident card fees for the Premises
which shall be in compliance with the City's approved annual plan. Further, City
hereby reserves the right to establish the golf cart rental fees and other equipment rental
fees that may be charged by Contractor. No changes in green fees, driving range fees,
lesson fees, golf cart rental fees, or golf equipment rental fees may be made by
Contractor without the advance written consent of City in City's sole and absolute
discretion, however such fees shall determine the standard of comparable courses that
Contractor is required to meet per section 1.09. From time to time, Contractor may
discount fees as a promotion to build business with the Director's approval.
All fees must fall within the ranges specified in the City's approved annual plan, with
the exact fees to be approved in advance in writing by the Director. if Contractor
desires changes to the green fees, driving range fees and/or golf cart rental fees,
Contractor shall submit a written request and analysis requesting the approval to change
fees.
3.25 Meetings. Representatives of the Contractor and the Director shall meet on an as-
needed basis (monthly if needed, and as least during each calendar quarter at a minimum) to
review Contractor's performance under this Agreement, complies with the annual plan, review
of the monthly financial reports submitted by Contractor, and the equipment maintenance plan,
and to discuss any problems or matters concerning the Golf Course. The City reserves the right
to enter the Golf Course premises for inspections and to meet with the Management Staff
without prior notice.
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3.26 Hazardous Materials.
3.26.1 Definition of Hazardous Materials. Hazardous Materials shall inean a)
petroleum; b) asbestos; c) polychlorinated biphenyls; d) radioactive materials; e) any
and all substances, products, by-products, waste or other materials of any nature or kind
which is or becomes listed, regulated or addressed by any federal, state or local laws,
statutes, ordinances, regulations, resolutions, decrees, rules, regulations, directives,
orders, guidelines or court decisions (collectively "Environmental Laws"); f) any
materials, substances, products, by-products, waste or other materials of any nature or
kind whatsoever whose presence in and of itself or in combination with other materials,
substances, products, by-products or waste give rise to liability under any
Environmental Law or any statutory or common law theory based on negligence,
trespass, intentional tort, nuisance, strict or absolute liability or under any reported
decision of the state or federal court; or g) any substances, products, by-products, waste
or other materials which may be hazardous or harmful to the air, water, soil,
environment or affect industrial hygiene, occupational, health, safety or general welfare
conditions.
3.26.2 Use and StoMe.of Hazardous Materials Prohibited. The use and storage of any
Hazardous Materials on the Premises are prohibited except as follows:
A. Contractor may park and use vehicles and equipment on the Premises in
connection with Golf Course activities under this Agreement, which vehicles
may contain gasoline, petroleum products, batteries, diesel fuel, and oil of those
kinds and quantities normally contained in such vehicles and equipment.
Contractor shall ensure that employees are trained and knowledgeable about best
management practices for operating and maintaining such vehicles and
equipment to prevent any Hazardous Materials release and how to handle any
such accidental release.
B. Fertilizers, herbicides, fungicides and pesticides on the Golf Course in a manner
consistent with the Maintenance Standards outlined in Section 3.05 and
Environmental Laws, Biocides, defoliants, chemical fertilizers, pesticides,
herbicides, fungicides or other agri-chemicals shall be stored in the Maintenance
Yard in an appropriate structure or location designated by City. Contractor
shall ensure that employees are trained and knowledgeable about best
management practices for using fertilizers, herbicides and pesticides to prevent
any Hazardous Materials release and how to handle any such accidental release.
3.26.3 Contractor's Res o sibilit . Contractor shall be responsible for the cleanup,
removal and disposal for any Hazardous Materials release on the Premises or any
Hazardous Materials release caused or exacerbated by Contractor's activities, including
but not limited to a release of gasoline, petroleum products, diesel fuel or oil from
vehicles or equipment parked or used on the Golf Course in connection with
Contractor's activities, or releases of fertilizers, herbicides, fungicides or pesticides into
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the sewage or storm drain systems or into groundwater or any natural or man-made
surface waters arising out of Contractor's operation and maintenance of the Golf
Course. Contractor shall immediately notify the Director and all other applicable
regulatory agencies of any Hazardous Materials release. Contractor shall timely comply
with all requirements of regulatory agencies. If Contractor does not promptly
commence and diligently pursue any required investigation, remediation or clean-up
activities, City, in its discretion and in addition to any other rights or remedies that the
City may have, may perform the investigation, remediation or clean-up activities. If the
Contractor caused or exacerbated the need for the cleanup, removal and disposal of
Hazardous Materials, Contractor shall reimburse City within five (5) days of City's
demand for payment or City may deduct the amount from any amounts owing
Contractor; otherwise such costs shall be reimbursed by City. If the Golf Course or a
portion of it is closed in order to investigate, remediate or clean-up a Hazardous
Materials release, then Director may require the cessation of some or all activities on
the Golf Course and Contractor shall not be entitled to payment of any fees, expense or
other compensation that would otherwise accrue during this period.
3.26A Indemnification for Hazardous Materials. Contractor shall indemnify, hold
harmless and defend City, its officers, officials, employees, volunteers and agents from
all loss, damage, liability and expense resulting from the presence, use or release of
Hazardous Materials by the Contractor or arising from Golf Course operations under the
control of Contractor. Contractor shall not be responsible for, nor shall it indemnify,
hold harmless or defend City, its officers, officials, employees, volunteers and agents
from any loss, damage, liability and expense resulting from the presence, use or release
of Hazardous Materials prior to the earlier of the Effective Date or the date Contractor
assumes responsibility for maintenance of the Golf Course.
4.0 APPROVALS.
4.01 Standard for Approvals. Wherever this agreement provides for- the approval of the
Director, such approvals shall be issued in writing. Except as otherwise provided in this
Agreement, and, specifically, where this Agreement expressly provides that an approval or
determination is within the sole and absolute discretion of Director, in which case this
paragraph shall not apply, a consent or approval referred to herein of either party shall not be
unreasonably withheld or conditioned. In the event that either party refuses to give its consent
or approval to any request by the other, such refusing party shall indicate by written notice to
the other the reason for such refusal unless this Agreement permits the consent or approval to
be withheld without cause or in the sole discretion of either party.
4.02 Other Citv Approvals. Neither City's execution of this Agreement nor any consent or
approval given by City hereunder in its capacity as a party to this Agreement shall waive,
abridge, impair or otherwise affect City's power and duties as a governmental body. Any
requirements under this Agreement that Contractor obtain consents for approvals of City are in
addition to and not in lieu of any requirements of law that Contractor obtain approvals or
permits. However, City shall attempt to coordinate its procedures for giving contractual and
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governmental approvals so that Contractor's requests and applications are not unreasonably
denied or delayed.
5.0 ANNUAL PLAN.
5.01 Preparation of the Annum Plan. Contractor shall submit to the City a proposed
Annual Plan for the Golf Course for the next Operating Year ("Annual Plan") no later than June
30 of each year unless otherwise approved by the director. The Director shall either approve
the proposed Annual Plan or make reasonable changes to the proposed Annual Plan no later
than July 31 of each year or 30 days after submittal date whichever is later. Once approved by
the Director, the Annual Plan is subject to changes by City until the budget is approved by the
City Council. In conjunction with this process, Contractor shall provide changes to the Annual
Plan as requested by the Director. The Annual Plan for the first Operating Year, including start
up costs, shall be submitted to the City no later than thirty (30) days after execution of this
Agreement and shall be approved, subject to any reasonable changes, by the Director within
thirty (30) days after submittal.
5.02 Contents of the Annual Plan, The Annual Plan shall include:
a) Actual numbers for previous year, current year, current year revised and
estimates for the next Operating Year, including the following items: (i) Gross
Revenues separated into green fees, driving range fees, cart fees, lesson fees,
merchandise revenue, resident cards, golf food and beverage revenue, banquet
food and beverage revenue and tournament revenue, (ii) number of rounds
played/projected.
b) Operating budget (the "Direct Cost Budget") showing Golf Course and Food
and Beverage Expenses for previous year, current year, current year revised and
estimates of all Golf Course Expenses for the next Operating Year, including,
but not limited to expenditures for: (i) labor, (ii) operations and maintenance,
(iii) repairs, replacements, and alterations which do not constitute Capital
Expenditures, (iv) Furnishings and Equipment and Cost of Goods Sold, and (iv)
advertising, sales, and business promotion;
C) Net Cash Flow Budget for previous year, current year, current year revised and
projected for the next Operating Year. Net Cash Flow budget shall contain
Gross Revenue and all expenses, including Direct Costs, and Fixed and
Incentive Management Fees;
d) Course Maintenance Plan including a report of maintenance activities
undertaken during the current year for performance of the ground maintenance
services as provided under Section 3.05, as well as projections for the next
Operating Year;
e) Annual staffing plan outlining the number of employees and positions for the
previous year, current year, and the next Operating Year;
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f} Marketing and Promotion Plan for the Golf Course including a report of
activities undertaken during the current year as well as projections for the next
Operating Year;
g) Capital Expenditures for previous year, current year and budget for proposed
Capital Expenditures ("Capital Budget"), as well as a proposed five (5) year
capital investment plan;
h) For the first Operating Year, start-up costs, if any; and
i) All food and beverage menu prices and proposed changes.
5.03 Approval of the Annual Plan. The Director shall have final authority for approval of
the Annual Plan as submitted by Contractor.
5.04 Compliance. Contractor shall comply with the applicable Approved Annual Plan,
Without the prior consent of the Director, the actual amount expended for Direct Costs shall not
exceed the program budget, including budget adjustments, approved by the City. Consent shall
be presumed if identified and itemized separately within the expense projections provided to
the city in monthly financial statements show total expenses in excess of budget and the
director does not specifically direct Contractor to not spend beyond budgeted amounts so long
as total expenses do not exceed the amount of the forecast by more than 5%.
5.05 Quarterly Review of Annual Plan. The Director and Contractor's Management Staff
shall meet quarterly and discuss the operation and maintenance of the Golf Course. The parties
shall agree upon any amendments or revisions to the Annual Plan to take into consideration
variables or events that did not exist, or could not be anticipated by Contractor or City, at the
time the Annual Plan was prepared. Any revisions to the Annual Plan shall require approval of
the Director, who in his sole and absolute discretion may require further approval by the City.
5.06 Direct Costs. Direct Costs shall be those costs which are directly related to the resident
staff, operation and maintenance of the Premises and which are established by the Direct Costs
Budget, including, but not limited to the following:
a) Employee salaries and employee severance payments as approved by the
director.
b) Employee benefits including vacation, sick leave, health insurance, disability
insurance, worker's compensation insurance and retirement benefits.
C) Purchase, lease and/or rental of equipment necessary for the operation of the
Premises. if Director determines that purchasing any item of equipment would
be most cost-effective, then the annual Direct Cost associated with that
equipment shall be Contractor's actual cost, provided the Director gives advance
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written approval of the amount of such cost, in the Director's sole and absolute
discretion.
d) Repair and maintenance of golf carts, irrigation systems and other equipment
used solely in the operation of the Premises.
e) Fuel, oil and lubricants.
t) Fertilizers, pesticides, chemicals and grounds maintenance supplies as described
in Section 3.05 of this Agreement.
g) Uniforms, laundry and linens.
h) Operating supplies, office supplies, cleaning supplies and other miscellaneous
supplies.
i) Accounting and audit expenses,
j) Advertising and marketing expenses.
k) Mileage reimbursement and travel related expenses.
l) Training expenses.
rn) Telephone, postage and freight.
n) Fees for permits and licenses.
o) Utilities, including natural gas, water, electric power, telephones, propane,
garbage, trash collection and recycling.
P) Insurance premiums.
q) Accounting, credit card processing and related services.
r) Parking lot maintenance expenses.
S). Cost of Resale Inventory.
t) Lesson Expenses as defined in Section 5.10.
u) Taxes and assessments arising out of Contractor's operations at the Golf Course,
but only to the extent attributable to equipment and other items of personal
property used exclusively at the Golf Course or Business and Occupation taxes
levied on operator for reimbursements at any time in the future, if any.
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V) Professional (including approved legal services) and Consulting services.
w) Contract services including removal of hazardous materials, trees and debris.
X) Computer equipment and software.
Y) Cost of performance bond required, if any.
Z) Late fees when determined, that prior to written approval by the Director, to be
in the best interest of the city or course..
5.07 Excluded Costs. The following costs are not considered Direct Costs, shall not be
reimbursed and shall not be included in the Direct Cost Budget:
a) Any penalties or fines imposed by any governmental agency, except for those
penalties or fines caused by the act or omission of City or not reasonably related
to the acts or omissions of Contractor.
b) Expense of Contractor's corporate office if any, except for any travel included in
the approved annual budget and accounting services to be provided by
Contractor's employee(s) at Contractor's office at a total cost of $1,000.00 per
month for Year 1; with accounting services to be increased thereafter at the
beginning of each Operating Year based on the Consumer Price Index Seattle
CPI-U as of June 30 of the preceding Calendar Year with .tune 30'x', 2011 as the
base year for purposes of such calculation.
C) Employee salaries or any Compensation of any corporate or regional employee
of Contractor.
5.08 Direct Cost Budget. The Direct Cost Budget is the total sum budgeted annually for
Direct Costs. Contractor is responsible for monitoring adherence to the Direct Cost Budget.
5.09 Lesson Expenses. All payinent for lessons shall be processed through the Pro Shop
cash register and shall be included in the daily Gross Revenue Deposits in accordance with the
cash handling procedures which meet the City's security and internal control policies. Lesson
Expenses are defined as, and limited to, that portion of golf lesson fees that are paid to golf
instructors and shall be paid twice monthly to the instructors, if they are Contractors of the
Manager. The portion of the golf lesson fees that may be paid to the golf instructors shall not
exceed 90% unless otherwise approved of by the Director. if the golf instructors are employees
of the Contractor, the portion of the golf lesson fees that may be paid to the golf instructors in
addition to salaries shall not exceed 95 % of the golf lesson fees and shall be paid with the
regular payroll.
5.10 Capital E.x enditures. Capital Expenditures are expenditures for equipment,
improvements to existing Facilities or construction of new Facilities, the cost of which is equal
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to or in excess of Five Thousand Dollars ($5,000) and have a useful life of more than one (1)
year.
a) All Capital Expenditures are in the City's sole control and discretion, and all
costs and expenses of Capital Expenditures shall be paid from CITY funds.
Contractor shall not make any Capital Expenditure prior to obtaining the written
approval of the Director, in his or her sole and absolute discretion. Capital
Expenditures shall not be included in any category of the Direct Cost budget,
unless expressly approved by the Director in writing.
b) Except in the event of an emergency threatening imminent injury to persons or
damage to property, the parties acknowledge and agree that this Agreement
imposes no responsibilities or obligations on the part of Contractor with respect
to any aspect of a Capital Expenditure project, including design, construction, or
supervision. In the event City desires Contractor to be involved in any capacity
in a Capital Expenditure project, the parties will enter into a separate agreement
setting forth the terms and conditions of such involvement, including without
limitation fees to be received by Contractor for such involvement.
5.11 No Incentives or Disincentives. Contractor shall not be entitled to any portion of the
savings if the level of Direct Costs is less than the Direct Cost Budget during an Operating
Year, nor shall Contractor be required to pay any portion of cost overruns if the level of Direct
Costs is more than the Direct Cost Budget during an Operating Year, unless required
notifications and/or approvals were not obtained as defined elsewhere in this agreement.
5.12 Termination for Direct Cost Overruns. If the Direct Costs in any Operating Year are
more than 10% higher than the Direct Cost Budget, except if the level of such cost overruns is
greater than might reasonably be caused by 'increased levels of patronage of the Premises,
results from causes beyond Contractor's reasonable control or if Contractor has given City
written notice of the event(s) causing such cost overruns, City may terminate this Agreement in
accordance with Section 10, subject to Contractor's right to cure such cost overrun by
depositing Contractor's own funds in the Direct Cost Bank Account. City shall act reasonably
in exercising its rights under this Section.
6.0 MANAGEMENT FEE.
6.01 Combined Management Fee. City shall pay to Contractor a Management Fee
consisting of a Fixed Management Fee and an incentive Management Fee.
6.02 Annual Fixed Management Fee. Annual Fixed Management fee shall be:
Year One: $70,000
Year Two: $75,000
Year Three: $80,000
Fee to increase annually by CPI after Year Three, but not more than 5% per year.
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6.03 Payment of Fixed Management Fee. The annual Fixed Management Fee shall be paid
in 52 equal installments and he included with the payment of Direct Costs as listed in section
7.03.
6.04 Incentive Management Fee. The incentive is calculated as a percentage of the
increase in Gross Revenues over the Base Year. The Base Year would be the average revenue
for the years 2007 —2010 as shown in Attachment 41. The incentive Fee percentages applied to
increase in Gross Revenues over Base Year are as follows:
Gross Golf Revenue(Green Fees, Carts, Range, Other Golf Revenue) = 10%
Merchandise Revenue=3%
Food & Beverage Revenue = 7.5%
6.05 Payment of Incentive Management Fee. The Incentive Fee is calculated and paid
annually and would be limited such that the Incentive Fee could not exceed the percentage of
the Total Fee (Base and Incentive Fee combined) allowable under IRS Revenue procedure 97-
13.
6.06 Correction to Gross Revenues and Incentiye_Manat?ement Fee. If an inspection or
audit pursuant to Article 8.0 results in a correction of the amount of Gross Revenues: (a) City
shall pay Contractor any additional Incentive Management Fee amount pursuant to Section
6.04 within thirty (30) days of receipt of notice of the correction, if the amount of Gross
Revenues has been adjusted upward; or (b) Contractor shall refund to City the amount of any
overpayment of the Incentive Management Fee pursuant to Section 6.04 within thirty (30) days
of receipt of notice of the correction, if the amount of Gross Revenues has been adjusted
downward.
6.07 Proiect Management. If the City determines it is in its best interest to have the
Contractor provide project management of capital improvements, a management fee shall be
negotiated between the parties.
7.0 FINANCIAL AND ACCOUNTING PROCEDURES.
7.01 Bank Account. The parties shall maintain two separate bank accounts. The City shall
maintain a bank account into which all monies collected on behalf of the golf course shall be
deposited. All ownership and rights to the money reside with the City. The Contractor shall
create and maintain a separate account from which Contractor expenses related to the City of
Pasco golf course, and only the City of Pasco golf course, shall be paid. All ownership and
rights to the money in this account reside with the Contractor. Under no circumstances shall
proceeds that belong to the City be deposited into this account or any other account other than
the City account designated above.
7.02 Deposits. All monies received on behalf of the City golf course shall be deposited by
the end of each day it was received into the City's bank account according to procedures
approved by and on forms as prescribed by the Citv. All credit card transactions will be settled
at the close of business on the same day. Variance from these deadlines may be approved at the
city's discretion by the Director.
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7.03 Patment of Direct Costs_. Upon receipt of proper documentation (see Financial
Reports section 7.06) by noon on Thursday, the City shall reimburse the Contractor by wire
every Thursday afternoon for Contractor services. The cost of the wire shall be a City cost and
not a Contractor cost. If Thursday is a holiday, then the processing day is moved to the
Wednesday immediately prior. This weekly wire shall include payment for the weekly Fixed
Management Fee (pursuant to section 6.03) as well as reimbursement for Direct Costs paid by
the Contractor prior or equal to the wire date. The Contractor shall maintain purchasing and
payment internal controls adequate to ensure all the materials have been furnished, the services
rendered or the labor performed and that the claim for payment is just, due and an obligation of
the City of Pasco golf course. Original invoices and receiving documentation shall be
maintained on premise at the City of Pasco golf course for seven years,
7.04 Supplies. Inventorv. Working Capital and Otreratinz Equipment. All supplies,
inventory, working funds and operating equipment belong to the City.
7.05 Working Capital Advance. The Contractor shall maintain adequate working capital in
the Contractor's bank account to ensure disbursements from that bank account are adequately
funded. Any and all fees related to maintaining the Contractor's bank account (including any
returned items) are the responsibility of the Contractor and are not reimbursable by the City as
a Direct Cost. The Contractor shall provide the City access to view activity to the Contractor
bank account (as designated in section 7.01) at any time and to provide the city with a copy of
the monthly bank statement within three business days of issuance by the bank.
7.06 Financial Reports.
a) Daily reports. The Contractor shall deliver to the City Finance Division revenue
and deposit reports by no later than 9:00 a.m. for the prior day's activities.
Reports for Friday, Saturday and Sunday activities shall be prepared by
individual day's activities and are due no later than 9:00 a.m. Monday. Variance
from these deadlines may be approved at the city's discretion by the City
Revenue Accounting Lead, Financial Services :Manager, Administrative &
Community Service Director, Deputy City Manager or City Manager, The
reports shall be prepared in a manner, form and content as approved by the City
that meets the City's accounting and audit requirements.
b) Weekly reports. The Contractor shall deliver to the City Finance Division
Direct Cost reports. The reports shall be prepared in a manner, form and content
as approved and amended by the City.
C) Monthly reports. The Contractor shall deliver to the City Finance Division a
listing of all journal entries recorded in the prior month showing accounts,
amounts and explanation; a Balance Sheet and a Revenue & Expense Statement
for the month and year to date; by no later than the 20th of the month following
the reported month's activity.
d) Annual reports. The Contractor shall deliver to the City Administrative &
Community Service Director a preliminary annual budget report (for the next
calendar year's activity) by June 30th of each year listing out in detail the next
years' revenues and expense budgets. The Contractor shall deliver a final annual
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budget request to the City Administrative & Community Service Director by
July 31 st of each year. See section 5.0
e) Reports upon request. The Contractor shall provide access to all accounting
transactions, documents and records upon city request and within five business
days from the date of request.
7.07 State of Washington Sales Tax, Use Tax and Excise Tax ReQortine. The contractor
is responsible for knowing and understanding the State of Washington sales, use tax and other
excise tax laws and to properly record transactions and report in accordance with those laws.
Revenue related transactions shall be recorded separately between revenues and sales tax in the
point of sales system. The City shall prepare and submit excise tax returns to the Department
of Revenue for City golf course revenue related activities. Use tax on purchase transactions
shall be recorded on purchasing transactions in a manner similar to sales tax paid. The
Contractor's amount of Direct Costs submitted to the City for payment shall include the
appropriate use tax amount, The Contractor shall prepare and submit excise tax returns to the
Department of Revenue to report and remit the use tax. Any Contractor calculation, reporting,
payment deficiencies or penalties related to those deficiencies are the sole responsibility of the
Contractor and are not reimbursable by the City. A copy of the report shall be submitted to the
city within five business days of filing so the City can verify the Contractor is reporting timely.
7.08 Cash Registers. All sales, revenue, deposits, receivable collection and other applicable
transactions shall be processed using City approved cash registers and point of sale systems;
and in accordance to procedures approved by the City.
7.09 Contracts and Agreements. All third-party contracts relating to the operation and
maintenance of the Golf Course (including without limitation golf professional contracts,
contracts for maintenance and repair services, pest control, supplies, and landscaping services,
and contracts for tournaments, banquets, and other group functions) shall abide by the
requirements in this section and the City's Purchasing Policy and Procedures. Except as
provided in this Agreement, all leases and financing agreements for Furnishings and
Equipment, and all contracts and agreements relating to the operation and maintenance of the
Golf Course entered into during the term of this Agreement, shall be entered into by Contractor
as the contracting party. If the term of the lease, financing agreement, or other contract or
agreement is for more than one year or extends beyond the expiration date of this Agreement or
if the date for performance under such contract is after the expiration date of this Agreement,
then approval of the Director is required and the contract shall allow assignment to City
without approval of the other party.
7.09.1 Contracting:_Procedures
A. Purchases over $10,000. if such purchases are included in the
Approved Annual Budget, then no additional approvals are required.
When not included in the Approved Annual Budget, then approval of the
Director is required.
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B. Emergency Expenditures. Upon notice provided in Section 3.1.6
above, Contractor shall attempt to receive approval of director where
expenditures are significant, but in any case shall expend minimum
funds required to appropriately remedy the emergency situation and such
expenditures shall be considered a direct cost.
C. Purchases by Contractor for City's Account. Contractor shall make
such purchases where possible and practical when requested in writing
by the Director or as part of the Approved Annual Budget
D. Trade Discounts, Rebates, Refunds and National Accounts. All such
discounts, refunds etc. shall be refunded back to the course.
E. Purchases from Contractor Affiliates. Any purchases of goods or
services for the Golf Course made from or through an Affiliate of
Contractor, or the sale, rental, or transfers of goods or services of the
Golf Course, including equipment, materials, inventory, or other services
provided to the Contractor's affiliates or other entities, shall require the
prior written approval of the Director unless such purchases are
specifically identified as purchases from Contractor's affiliates and
included in the Approved Annual Budget. Any such charges for such
goods or services, shall be on the same terms and prices as applicable to
other golf courses and country clubs operated by the Contractor.
7.09.2 Approval of the Cite. If a contract has not been approved through the Annual
Budget or exceeds the budgeted amount for the item or service, approval of the Director
is required.
7.09.3 Requirements for Third-Part° Contracts. Subcontractors, lessees,
concessionaires, tenants and any other third-party contractors shall:
A. 'Maintain and carry insurance in the amounts set forth in Airticle 9.0 with
the City named as additional insured by endorsement, unless covered by
the Contractor's insurance.
B. Comply with the requirements of this Management Agreement, including but
not limited to the nondiscrimination provision set forth in Section 3.17, the drug
free workplace provision in Section 3.18, which shall be included in all
subcontracts, leases, concessionaire and other third-party contracts.
7.10 Reports. Contractor shall provide a list of all open contracts and agreements related to
the Golf Course, with a brief description of the contract, teen, dollar amount, contact name and
phone number, as requested by Director.
8.0 BUSINESS RECORDS
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8.01 Tvtres of Records. Contractor shall maintain a modified accrual method of accounting
that complies with generally accepted accounting principles for all the revenues and expenses
(including without limitation, Gross Revenues, City-Assessed Fees and Direct Costs) in
connection with the operation of the Premises. Contractor shall establish and implement
adequate internal controls for the operation of the Golf Course. The accounting, books and
records for the operation of the Golf Course shall be separate from the accounting, books and
records for any other business operated or managed by Contractor. Such accounting, books and
records shall include the keeping of at least the following documents;
a) Regular books of account such as general ledgers showing all assets, liabilities
including cash balances, accounts payable, deposits, accounts receivables, fixed
assets and equipment inventory;
b) Journals, including, without limitation, any supporting and underlying
documents such as vouchers, checks, tickets, bank statements, etc.;
C) Cash register reports that will enable identification of day-to-day sales; and
d) Any other accounting, books and records for the operation of the Golf Course
that City, in its sole discretion, deems necessary or appropriate for proper
reporting of Gross Revenues and Direct Cost disbursements;
e) Contractor shall maintain a computerized system, showing all information on
the number and types of rounds of golf played and the corresponding revenues
and fee categories, customer addresses and associated data, resident versus non-
resident status,and the fee paid per round; and
f) Logs showing the dates and times of golf play and lessons must be maintained
and available at the site for inspection by City at any time. In the event driving
range equipment that tracks dates and times of play is not available at a price
acceptable to Director, Contractor shall maintain and keep available
documentation sufficient to facilitate an audit of driving range revenues.
8.02 Audit of Records. All documents, books and accounting and financial records kept by
Contractor pursuant to this Article 8, and relating in any manner to the Premises, shall be open
for inspection by City at any reasonable tirne during the term of this Agreement and for at least
three (3) years thereafter. In addition, City or its authorized representatives may, from time to
time, conduct an audit of the books of the operation of the Premises, observe the operation of
the business and review internal controls, security, and cash handling procedures for adequacy.
City shall use reasonable efforts to minimize the interruption to the normal operation of the
Premises during any inspection or audit performed pursuant to the provisions of this Section.
8.03 Annual Financial Statements. if authorized by the Director, the Contractor may be
required to submit audited, reviewed or other agreed upon procedures (AUP) financial
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statements for the operation of the Premises including an independent auditor's report and
corresponding management letter to City within ninety (90) days after the end of each
Operating Year when required. The audit, review or AUP shall be performed by an independent
certified public accountant acceptable to City, and the cost of the audit or other procedure shall
be included as a Direct Cost.
8.04 Public Records. All information obtained in connection with City's inspections of
Contractor's records or audits, with respect to the Premises, may be or become subject to public
inspection and/or reproduction as public records.
8.05 Comparable Market Data. Contractor undertakes a fiduciary role for the City, and
covenants to treat City's Golf Course in an equitable manner vis-a-vis any other golf course it
may lease or operate. With a reasonable request of City, Contractor shall provide non-
confidential, comparable market data or information regarding a certain Golf Course Expense
or Fee item. The market data or information may not specifically identify a particular golf
course. If the information being provided is not a public record, then the City shall keep this
infonmation confidential to the extent allowed by law.
8.06 Monthly Financial Reports. Within twenty (20) calendar days after the end of each
month, Contractor shall provide City with the following reports and documents:
a) Year-to-date balance sheet and income and expense statement, including but not
limited to, unearned and deferred revenues, all Direct Costs for that month and
Gross Revenues for that month (itemizing each source of Gross Revenues
including, without limitation, green fees, golf cart rentals, Pro Shop sales, golf
food and beverage sales, lesson fees, banquet food and beverage sales, driving
range operations, resident cards);
b) Duplicate bank statement;
C) Check register or equivalent report;
d) A reconciliation between the bank statement and the check register and year-to-
date balance sheet;
e) Consolidated sales report from Point of Sale system for the month reported; and
t) Total number of golf rounds played by fee categories for the month reported and
Operating Year to-date.
g) Other financial information requested that is a reasonable request,
9.0 INSURANCE AND INDEMNIFICATION
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9.01 Insurance. Contractor shall at all times during the term hereof, produce and continue
in force Commercial General Liability Insurance, Automobile Insurance and Workers'
Compensation Insurance as follows.
A. Minimum Scope of Insurance. Coverage shall be at least as broad as:
I) Commercial General Liability Insurance.
2) Automobile Liability Insurance,
3) Liquor Liability Insurance.
4) Workers' Compensation insurance as required by the Industrial Insurance
Laws of the State of Washington.
5) Contractor may provide any of the insurance herein required by means of
an endorsement on a blanket liability policy or policies.
B. '.Minimum Limits of Insurance.
Contractor shall maintain policy limits no less than:
I) Commercial General Liability insurance shall be written with limits of
no less than $2,000,000 per occurrence and shall cover liability arising
from premises, operations, independent contractors, products-completed
operations, stop gap liability personal injury and advertising injury and
liability assumed under an insured contract, with a general aggregate of
$2,000,000 which shall apply separately to this location and a
$2;000,000 products-competed operations aggregate limit. The City
shall be named as an additional insured.
2) Automobile Liability: $2,000,000 combined single lunit per accident for
bodily injury and property damage.
3) Liquor Liability: Contractor shall procure and maintain for the duration of
the agreement Liquor Liability insurance in the amount of $1,000,000
each occurrence. The City is to be named as an additional insured on
Liquor Liability insurance.
C. Deductibles and Self Insured Retentions.
Any deductibles in excess of Five Thousand Dollars ($5,000) or self-insured
retentions must be declared to and approved by the City. At the option of the
City, either the insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects the City, its officers, officials, employees and volunteers, or
the city will approve in writing the appropriate deductible or self-insured amounts
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in relation to the cost of such coverage. Contractor shall guarantee payment of
losses and related investigations, claim administration and defense expenses,as
applied to deductible and self-insured retentions.
D. Other Insurance Provisions.
The policies shall contain, or be endorsed to contain,the following provisions:
1) City, its officers, officials, employees, agents and volunteers are to be
covered as additional insured's as respects: (i) liability arising out of
activities performed on behalf of the Contractor; (ii) products and
completed operations of Contractor; (iii) premises owned, occupied, or
used by Contractor (including the Common Areas); or (iv) automobiles
owned, leased, hired or borrowed by Contractor. The Coverage shall
contain no special limitations on the scope of protection afforded to the
City, its officers,officials, employees, agents, or volunteers.
2) Contractor's insurance coverage shall be primary insurance as respects the
City, its officers, officials, employees, and volunteers. Any insurance or
self-insurance maintained by the City, its officers, officials, employees,
agents or volunteers shall be the excess of Contractor's insurance and
shall not contribute with it.
3) Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the City, its officers, officials, employees,
agents, or volunteers.
4) Contractor's insurance shall apply separately to each insured against whom
claim is made or suit is brought, except with respect to the limits of the
insurer's liability.
5) The insurer shall waive all rights of subrogation against the City, its
officers, officials, employees, and volunteers for losses arising from the
acts, omissions or use of the premises by the Contractor.
6) Each insurance policy required by this clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by first class mail, return receipt requested, has been given to the
City (except that ten (10) days' notice shall be sufficient for any
cancellation due to non-payment by Contractor.
7) Insurance is to be placed with insurers with a Best's Insurance Reports
rating of no less than B+:X.
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9.02 Insurance Issuers and Policies. All insurance required to be carried by Contractor
hereunder shall be issued by insurance companies, qualified to do the business of issuing the ap-
plicable types of policies in the State of Washington and acceptable to City, City's lender and
Contractor. Copies of all policies, and original endorsements evidencing the existence and
amounts of such insurance, shall be delivered by each party to the other no later than the Delivery
Date. No such policy shall be cancelable or substantially reduced in limits or coverage except
after thirty (30) days written notice to the other party. Contractor shall, at least (30) thirty days
prior to the expiration of such policy, furnish City with renewals or "binders" thereof together
with original endorsements if available from insurer, or City may order such insurance and
charge the cost thereof to Contractor, which amount shall be payable by Contractor upon
demand. Any insurance required hereunder may be carried under so-called "blanket coverage"
form of insurance policies. The coverage afforded will not be materially reduced or diminished
or otherwise materially different from what would exist under a separate policy meeting all of
the requirements of this Section 9.0.
9.03 Increases In Limits. Not more often than every three (3) years during the term of this
Management Agreement, City may require increases in all of Contractor's insurance policy limits
for all insurance to be carried by Contractor as set forth in this Article, if such increases are
commercially reasonable. Neither party shall be required to carry earthquake insurance.
9.04 Commercial Crime Insurance. Contractor shall obtain and keep in full force and
effect during the term of this Agreement a commercial crime policy which includes, without
limitation, a blanket bond for all employee dishonesty in the amount of$ 250,000; coverage for
theft, disappearance and destruction of monies and securities in or on the Premises or outside
the Premises in an amount not less than $35,000; and depositor's forgery in the amount of
$250,000. Contractor shall obtain Director's written permission before individually bonding
any individual employee and if allowed shall be in an amount not less than $500,000.
9.05 Indemnification and Hold Harmless. Contractor shall fully defend, indemnify and
hold harmless City and its elective and appointive boards, commissions, officers, agents, and
employees, and volunteers from and against any and all damages, liabilities, claims, suits, costs
or expenses, including but not limited to reasonable attorneys' fees and costs, for economic
damage to third parties, property damage or bodily injury, including but not limited to death:
a) which result from any act or omission by Contractor or any officer, director,
employee or subcontractor of Contractor in connection with Contractor's
performance under this Agreement or operation of the Golf Course;
b) which result from any action taken by Contractor relating to the Golf Course (i)
that is prohibited by this Agreement, or (ii) that is not within the scope of
Contractor's duties under this Agreement, or (iii) that is not within Contractor's
delegated authority under this Agreement;
C) which result from Contractor's violation of Insurance Requirements or Legal
Requirements, or
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d) which City, by reason of any alleged breach of a "non-delegable duty," is
subject to, because of the Contractor's violation of any national, state or total
law, regulation or order which pertains to providing safe working conditions for
Contractor's employees, or because of Contractor's failure to provide sate
working conditions for Contractor's employees.
The foregoing indemnification shall not apply to any damages or other liability caused by the
sole negligence or willful misconduct of City, nor shall it limit any right of Contractor
hereunder to pursue any remedy for City's failure to pay the Management Fee or to terminate
this Agreement for any breach by City.
Should a court of competent jurisdiction determine that this Agreement is subject to RCW
4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or
damages to property caused by or resulting from the concurrent negligence of the Contractor
and the City, its officers, officials, employees, and volunteers, the Contractor's liability
hereunder shall be only to the extent of the Contractor's negligence. It is further specifically
and expressly understood that the indemnification provided herein constitutes the Contractor's
waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this
indemnification. This waiver has been mutually negotiated by the parties. The provisions of
this section shall survive the expiration or termination of this Agreement.
9.06 Indemnification for Fines. Contractor shall fully defend, indemnify and hold City and
its elective and appointive boards, commissions, officers, agents; and employees, harmless
from and against any fines imposed by administrative or regulatory bodies for actions caused
by Contractor or its officers, employees or agents.
10.0 DEFAULT
1 0.01 Contractor's Default. The occurrence of anyone or more of the following events shall
constitute a material default and breach of this Management Agreement by the Contractor;
a) Contractor's abandonment or vacation of the Premises for a period of twenty-
four(24) hours.
b) Contractor's expenditure of Direct Costs exceeds the Direct Cost Budget by 10%
annually of, except if the level of such costs is greater than might reasonably be
caused by increased patronage of the Premises, results from causes beyond
Contractor's reasonable control or if Contractor has given CITY written notice
of the event(s) causing such cost overruns.
c) Contractor's Cost of Goods Sold for Pro Shop merchandise during any six (6)
month period exceeds 80% of gross sales during that period and food and
beverages during any six (6) month period exceeds 45% of gross sales during
that period except if the level of such costs is greater than might reasonably be
caused by increased levels of patronage of the Premises, required merchandise
clearance events, results from causes beyond Contractor's reasonable control or
38
if Contractor has given City written notice of the event(s) causing such cost
overruns.
d) Failure by the Contractor to timely pay, within sixty (60) days of the date due,
any Direct Costs except for vendors where a bonafide dispute over payment,
performance, or amount exists. When such a dispute exists and the amount
exceeds $500, Contractor shall notify city of such dispute. This also would not
include any situation where vendor offers teens beyond the due date stated on
the invoice.
C) Failure to observe or perform any of the other covenants, conditions or
provisions of this Agreement where such failure continues for a period of thirty
(30) days after written notice from the City, or an event of default occurs more
often than once in a twelve (12) month period; provided, however, if more than
thirty (30) days are reasonably required for a cure of a default, then Contractor
shall not be deemed to be in default if Contractor commences such cure within
said thirty (30) days, and thereafter, diligently prosecutes such cure to
completion.
f) Contractor's use of Bank Account funds for any purpose not expressly provided
for by this Agreement or approved by the Director in writing.
g) The levy of a writ of attachment or execution on this Agreement or on any of the
property of Contractor located in or on the Premises and such levy or execution
is not stayed prior to the enforcement of such writ of attachment or execution.
h) An event of bankruptcy or insolvency including but not limited to: (i)
Contractor applies for or consents to the appointment of a receiver, trustee or
liquidator of Contractor or of all or a majority of its assets; (ii) Contractor files a
voluntary petition in bankruptcy or commences a proceeding seeking
reorganization, liquidation, or an arrangement with creditors; (iii) Contractor
files an answer admitting the material allegations of a bankruptcy petition.,
reorganization proceeding, or insolvency proceeding filed against Contractor;
(iv) Contractor admits in writing its inability to pay its debts as they come due;
(v) Contractor makes a general assignment for the benefit of creditors; or(vi) an
order,judgment or decree is entered by a court of competent jurisdiction, on the
application of a creditor, adjudicating Contractor a bankrupt or insolvent or
approving a petition seeking reorganization of Contractor or appointing a
receiver, trustee or liquidator of Contractor or of all or a majority of its assets,
and such order, judgment or decree continues unstayed and in efTect for any
period of thirty (30) consecutive days.
i) Failure to take advantage of prompt pay strategies except when approved by the
Director as in the best interest of the Course to forego such prompt pay
strategies..
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j) The assignment or attempted assignment or transfer of any or all interest of the
Contractor in this Agreement, or the subcontracting of all or any portion of this
Agreement without the prior written consent of the City.
10.02 Citv's Default, The City's breach of any provision of this Agreement, the failure to
keep, observe or perform any material covenant including, without limitation, the covenant to
pay the Management Fee, shall constitute a default and breach of this Agreement by City.
10.03 Curing Default. Except as otherwise expressly stated in this Agreement, the defaulting
party shall have ten (10) days after receipt of written notice from the other party to cure any
monetary default under this Agreement. The defaulting party shall have thirty (30) days after
receipt of written notice from the other party or the specific time permitted under this
Agreement to cure any default under any other covenant, condition or agreement contained in
this Agreement or, in the event that any such default is of a nature such that it cannot be cured
within thirty (30) days, the defaulting party shall immediately commence to cure and thereafter
diligently pursue such cure to completion. In the event of a second, or snore, event of default
within a twelve (12) month period of time, no further notice shall be required. Notwithstanding
the foregoing, Contractor shall be in default under this Agreement, with or without written
notice from City, in the event Contractor abandons or vacates the Premises for any period
exceeding twenty-four (24) hours except if such abandonment or vacating results from a force
majeure event or other cause beyond Contractor's control.
10.04 Remedies.
10.04.1 City's ability to do the work at Contractors expense. In the event of
Contractor's default as described in Section 10.0 1, if Contractor fails to cure the default
by the date specified, City may elect to undertake the work that Contractor has failed to
do or any work necessary or appropriate to diligently maintain the Premises. Should
City elect to undertake such work, it shall serve Contractor written notice of its intent to
enter the Premises and the exact nature of the work or correction it intends to perform.
Contractor may void the notice and City's right to enter and perform the work by
promptly performing the work set forth in the City's notice. The performance of the
foregoing work by City shall be at the sole expense of Contractor and shall not be
included as a Direct Cost.
If City undertakes work pursuant to these procedures, City shall make a demand upon
Contractor for payment of its costs. If Contractor fails to pay the costs incurred by City
within thirty (30) days of the date the demand is made, City may bring legal action to
collect the sums due and/or may deduct such costs from the Fixed Management Fee and
Incentive Management Fee otherwise payable to Contractor. If legal action is necessary
or appropriate to collect the amounts expended by City, Contractor shall pay all City's
attorneys' tees, including the fees of in-house counsel at the prevailing area rates, and
costs, court costs, and staff costs together with interest from the date which is thirty(30)
days after City has made demand for payment. Any actions taken by City pursuant to
this Section 10.04,Lshall not cure any default by.
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10.04.2 Termination of the Agreement. In the event the defaulting party fails to cure
any default of this Agreement within the applicable cure period, the other part}, may
terminate this Agreement upon expiration of the cure period by written notice to the
defaulting party.
If City terminates this Agreement pursuant to this Section, City shall have the following
rights:
a) to collect from Contractor any and all monies owing City under this
Agreement;
b) to take sole possession of the Bank Accounts;
C) to take sole possession of all equipment and materials, and
d) to pursue any and all other appropriate civil and criminal remedies.
Contractor shall be entitled to any unpaid portion of the Fixed Management Fee
attributable to performance that occurred prior to Contractor's default, less any damages
incurred by City as a result of Contractor's default.
If Contractor terminates this Agreement pursuant to this Section, Contractor shall have
the right to collect from City any and all monies owing Contractor under this
Agreement.
10.04.3 Remedies Cumulative. Neither the right of termination, nor the right to sue for
damages, nor any other remedy available to a party under this Agreement shall be
exclusive of any other remedy given under this Agreement or now or hereafter existing
at law or in equity.
10.05 Effect of Termination. The termination of this Agreement under the provisions of this
Article 10 shall not affect the rights of the terminating party with respect to any damages it has
suffered as a result of any breach of this Agreement, nor shall it affect the rights of either party
with respect to any liability or claims accrued, or arising out of events occurring, prior to the
date of termination.
11.0 CONTRACT ENDING TRANSITION PROCEDURES.
11.01 Contract Ending Transition Period. The "Contract Ending Transition Period" shall
mean: (i) the six (6) month period immediately prior to expiration of the term; (ii) the period
from the date CITY gives notice of default under Section 10.02 until the date of termination;
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11.02 Contract Ending Transition Procedures, During the Contract Ending Transition
Period:
a) Contractor shall allow City and others to interview and discuss employment
opportunities with Contractor's on-site employees.
b) Contractor shall not transfer any without the consent of Director, said approval
not to be unreasonably withheld.
C) Contractor and City shall refrain from coercing, threatening or harassing any
employee who expresses interest in being employed by City, Contractor or other
party after the Agreement has expired, or has been terminated or cancelled.
d) Contractor and City shall cooperate in good faith on post-contract support
services, data management, inventory control, transfer of employees and other
issues necessary and appropriate to ensure smooth transition of operating
responsibilities from one party to another. Nothing in this paragraph shall be
construed to require City or Contractor to hire additional personnel or spend
additional monies.
e) Contractor shall deliver to City all records and information related to
tournaments, banquets and other events booked at the Golf Course for the
Contract Transition Period or any time thereafter.
f) Contractor shall deliver to City current copies of all contracts, permits and
licenses affecting Golf Course operations, including without limitation, leases
for golf carts and other Golf Course equipment.
g) All real and personal property that is currently located at the Golf Course,
together with any real or personal property purchased or leased in accordance
with the Direct Cost Budget or otherwise with City funds is and shall remain the
property of City. Contractor shall transfer possession of the Premises, Facilities,
Furnishings and Equipment, supplies, software, databases, books, records and
materials purchased, prepared or maintained under this Agreement to the new
operator or City, as City shall direct. If City determines that the Premises, any
Facilities, Furnishings and Equipment or other item is not in an acceptable
condition accounting for normal wear and tear and budget constraints, if any,
Contractor shall have the burden of demonstrating that the item was properly
maintained or that the item is useable and in good condition. Contractor shall
reimburse City for the cost of repair or replacement of any item that is not in
useable and good condition, normal wear and tear and budget constrains
excepted. Contractor shall surrender the Premises in broom clean condition.
h) Contractor shall transfer all keys, convey all alarm codes and vacate the
Premises.
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i) Contractor shall assign to City and City shall assume Contractor's obligations
under any loans and leases incurred or entered into by Contractor with respect to
Furnishings and Equipment or supplies then in use at the Golf Course, provided
that the following conditions are met unless waived by the City: (i) Contractor
shall have delivered to City written documentation acceptable to City showing
that Contractor has fully performed its obligations under such loans and leases
through the date City assumes such obligations, and (ii) with respect to any
agreements in excess of one year or whose teen extended beyond the expiration
date of this Agreement, City shall have given its written approval to the
agreem ent.
j) Contractor shall promptly transfer the liquor license for the premises to the
City's designee for the suwu of S 1.00.
12.0 WORK STOPPAGES, DAMAGE OR DESTRUCTION
12.01 Work Stoppages. In the event concerted activities by labor groups (e.g., picketing,
strikes, etc.) result in Contractor's employees not entering and working at the Premises,
Contractor shall, if Director so requests in writing, seek appropriate administrative or court
orders to return operations to normal. During such period, Contractor shall operate the
Premises on a best efforts basis until labor relations are normalized. If and only if Director
gives Contractor a written request to seek administrative or court orders will the cost of doing
so shall be a Direct Cost. If the city has provided approval to seek appropriate administrative
or court orders to return operations to normal and Contractor's best efforts to operate the
Premises is insufficient to maintain and operate the Golf Course in a manner satisfactory to the
City, the City may enter the Premises and perform such maintenance and operation, at the sole
expense of the Contractor, until operations are permitted to return to normal.
12.02 Damage or Destruction. Should the Golf Course be destroyed or substantially
damaged by fire, Mood, acts of God, or other casualty, City, by written notice to Contractor,
shall have the right to cancel this Agreement pursuant to Article 12 on the basis that City does
not choose to rebuild or restore the Golf Course, and in such event neither party shall have any
further obligation to the other party under this Agreement, except with respect to liabilities
accruing, or based upon events occurring;, prior to the effective date of such cancellation. For
the purpose of this Section, the Golf Course shall be deemed to have been substantially
damaged if the estimated length of time required to restore the Golf Course substantially to its
condition and character just prior to the occurrence of such casualty shall be in excess of six (6)
months. If this Agreement is not cancelled in the event of damage to the Golf Course either
because (a) the damage does not amount to substantial damage as described above, or (b)
notwithstanding destruction of or substantial damage to the Golf Course, and the City elects, in
its sole and absolute discretion, to restore the Golf Course, then City may proceed, at City's
own expense, to commence and complete restoration of the Golf Course to its condition and
character just prior to the occurrence of such casualty. if as a result of any damage or
destruction to the Golf Course as provided in this Section, the responsibilities of Contractor
under this Agreement are substantially changed, then the parties shall meet and discuss in good
faith appropriate modifications to this Agreement including the Combined Management Fees.
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Any insurance proceeds made available after such damage or destruction shall be payable to
City.
12.03 Eminent Domain. If all of the Golf Course shall be taken through the exercise of the
power of eminent domain, or by agreement in lieu of the exercise of eminent domain, then
upon the date that City shall be required to surrender possession of the Golf Course, this
Agreement shall terminate and neither party shall have any further obligation to the other party
under this Agreement except with respect to liabilities accruing, or based upon events
occurring, prior to the effective date of such termination. Likewise, if such a substantial
portion of the Golf Course is taken through the exercise of eminent domain, or an agreement in
lieu of the exercise of eminent domain, so to make it unfeasible, in the reasonable opinion of
City, to restore and continue to operate the remaining portion of the Golf Course for the
purposes contemplated in this Agreement, then upon the date that City shall be required to
surrender a substantial portion of the Golf Course, this Agreement shall terminate and neither
party shall have any further obligation to the other party under this Agreement except with
respect to liabilities accruing, or based upon events occurring, prior to the effective date of such
termination. If such taking of a portion of the Golf Course shall not make it unfeasible, in the
sole and absolute discretion of City, to restore and continue to operate the remaining portion of
the Golf Course for the purposes contemplated in this Agreement, then this Agreement shall
not terminate, and City may proceed, at City's own expense, to alter or modify the Golf Course
so as to render it a complete architectural unit which can be operated as a golf course of
substantially the same type and character as before. If as a result of any alteration or
modification of the Golf Course, the responsibilities or rights of Contractor under this
Agreement are substantially changed, then the parties shall meet and discuss in good faith
appropriate modifications to this Agreement including the Combined Management Fee. Any
award pursuant to a taking by right of eminent domain shall belong to and be paid to City.
12.04 Force Majeure Events: As used in this Agreement, the tern "Force Majeure" means
declared or undeclared war, sabotage, riot or acts of civil disobedience, acts or omissions of
governmental agencies, accidents, fires, explosions, floods, earthquakes, or other acts of God,
shortages of materials, or any other event not within the control of Contractor and not caused
by the negligence or intentional wrongful conduct of Contractor or City.
If Contractor or City is unable by reason of Force Majeure to carry out any obligation under
this Agreement, such obligation shall be suspended only so far as it is physically affected by
such Force Majeure. The party unable to perform shall give the other party prompt notice of
such Force Majeure with a detailed explanation and the probable extent to which it will be
unable to perfonn or be delayed in performing such obligation. The party unable to perform
shall use all possible diligence to remove such Force Majeure as quickly as possible. The
requirement that any Force Majeure shall be removed with all possible diligence shall not
require the settlement by the party unable to perform because of strikes, lockouts or other labor
disputes or the meeting of any claims of or demands by any supplier or government entity
which reasonably may be harmful to the best interests of the City or Contractor.
Costs incurred as a result of a Force Majeure shall be reimbursed by the City, if the expenditure
was approved in advance by the Director, which approval will not be unreasonably withheld.
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If as a result of the occurrence of a Force Majeure, the responsibilities of Contractor under this
Agreement are substantially changed, then the parties shall meet and discuss in good faith
appropriate modifications to this Agreement including the Combined Management Fee.
13.0 SUBMISSION OF PAYMENTS,REPORTS AND NOTICES
13.01 Payments and-Financial Reports. Any payments and financial reports and documents
required by this Agreement shall be submitted or emailed to:
Director of Administrative & Community Services
CITY OF PASCO
525 North Third
Pasco WA 99301
aesadmin @pasco-wa.gov
With copy to:
Finance Manager
CITY OF PASCO
525 North Third
Pasco WA 99301
13.02 Other Notices. Any notice, demand, request, consent, approval or communication that
either party desires or is required to give to the other party shall be in writing and shall be
deemed given as of the time of hand delivery to the addresses set forth below, or three (3) days
after deposit into the United States mail, postage prepaid, by first class mail. Unless notice of a
different address has been given in accordance with this Article 13, all such notices shall be
addressed as follows:
If'to City:
Director of Administrative& Community Services
CITY OF PASCO
525 North Third
Pasco WA 99301
With a copy to:
Leland B. Kerr
KERR LAW GROUP
7025 West Grandridge Blvd, Suite A
Kennewick WA 99336
If to Contractor:
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CourseCo, Inc.
PO Box 1019
Petaluma CA 94953-1019
14.0 DISPUTE RESOLUTION
14.01 Controversies Subject to Mediation. Any controversy between the parties regarding
the construction or application of this Agreement, and any claim arising out of this Agreement
or its breach, may first be submitted to a mediator mutually selected by the parties.
14.02 Mediation Schedule. The mediation shall take place before the mediator at the time
and place selected by the mediator unless the parties agree otherwise. The mediator shall select
the time and place promptly and shall give each party written notice of the time and place at
least ten (10) days before the date selected; provided that the meeting shall take place not less
than thirty (30) days after the request for mediation.
14.03 Cost of Mediation. Each party hereto shall bear the attorneys' fees, costs, and
expenses incurred by it in connection with such Mediation, and both parties shall share equally
the costs and expenses attributable to the services of the mediator.
14.04 Other Proceedings. If mediation does not prove successful, either party may institute a
proceeding in a court of competent jurisdiction with venue being placed in Pasco, Franklin
County, Washington, or the parties may agree to nonbinding or binding arbitration pursuant to
RCW 7.04A.
15.0 MISCELLANEOUS PROVISIONS
15.01 Ownership. Ownership of the Golf Course, all Facilities, Furnishings and Equipment,
Resale Inventory and Supplies acquired by City or acquired by the Contractor on behalf of
City, and all alterations, additions or betterments thereto, shall remain the property of the City.
15.02 Warranties
15.011 Contractor Warranties. Contractor warrants and represents that it has
full power and authority to enter into this Agreement and perform the obligations in this
Agreement; that consummation of this Agreement will not create a default under any
other agreement and will not violate any law, regulations, order, judgment, decree or
rule; that Contractor has conducted its own review of the plans and specifications for
the Golf Course prior to execution of this Agreement; and that Contractor is not relying
on any representation of the City in connection with the execution of this Agreement.
Contractor warrants and represents that it is authorized to transact business in the State
of Washington and that all of Contractor's employees are properly licensed and trained
for their respective positions and responsibilities.
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15.02.2 City Warranties, City warrants and represents that it has full power and
authority to enter into this Agreement and perform the obligations in this Agreement
and that consummation of this Agreement will not create a default under any other
agreement and will not violate any law, regulations, order, judgment, decree or rule.
City warrants and represents that it is authorized to transact business in the State of
Washington and that all of City's employees are properly licensed and trained for their
respective positions and responsibilities.
15.03 Premises.
15.03.1 City's Right of Possession. This Agreement does not constitute a lease
and the right of possession of the Premises shall at all times remain with City. City and
its authorized representatives shall have the right to enter the Premises at any time
without notice and for any purpose, including, without limitation, the following: (i) to
determine whether the Premises are in good condition and whether Contractor is
complying with its obligations under this Agreement; (ii) to do any necessary
maintenance and to make any restoration to the Premises that City has the right to
perform; to serve, post or keep posted any notices required or allowed under the
provisions of this Agreement; (iii) to show the Premises to prospective brokers, agents,
buyers, tenants, operators any time during the term of the Agreement; and (iv) to
undertake emergency maintenance, repairs or restoration. City reserves the right to
establish, grant or utilize easements or rights-of-way over, under, along and across the
Premises.
15.03.2 Condition of Premises. Contractor acknowledges that, except as
expressly set forth in this Agreement, City has made no representations or warranties
concerning the condition of the Premises and Contractor agrees to commence
operations on the Premises on the Effective Date of this Contract, as determined by the
Director. This Agreement is subject to all easements, liens and other interests affecting
title to the Premises, whether or not they are of record.
15.04 Waiver. No delay or failure on the part of any party in exercising any right hereunder
shall impair any such right or any remedy of the party so delaying or failing. No waiver of any
provision of this Agreement shall be binding unless executed in writing by the party making the
waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a
waiver of any other provision, whether or not similar, nor shall any waiver constitute a
continuing waiver.
15.05 Integration. This agreement is the entire agreement between the parties, and
supersedes all prior and contemporaneous agreements, representations and understanding of the
parties concerning the subject matter hereof.
15.06 Modification of Agreement. No modification, amendment or supplement to this
Agreement shall be binding unless executed in writing by both of the parties.
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15.07 Severabi;lity. if any court of competent jurisdiction holds that any provision of this
Agreement is void, voidable, illegal or unenforceable, or that this Agreement would be void,
voidable, illegal or unenforceable unless any provision of it were severed, that provision shall
be severable from and shall not affect the continued operation of the rest of this Agreement;
provided that if the provision to be severed is a material part of this Agreement, the foregoing
shall not apply, and the parties shall in good faith renegotiate such provision.
15.08 Time of the Essence. Time is of the essence in the performance of all obligations
under this Agreement for which specific time periods have been specified.
15.09 Assignment. City shall have the right to assign its interest in this Agreement without
]imitation, except that City shall not have the right to assign its interests hereunder without
Contractor's prior written agreement if, in the reasonable judgment of the Contractor, such an
assignment will affect Contractor's performance of this Agreement or expose Contractor's
confidential and proprietary information to a competitor. Upon any such assignment, City
shall be relieved of any further obligation under this Agreement provided such assignee
assumes all of City's obligations under this Agreement. Contractor acknowledges that City is
entering into this Agreement in reliance on the unique skill and experience of Contractor and its
employees. Contractor shall not subcontract or assign all or any part of its right or obligations
under this Agreement, unless approved in writing by Director, said approval not to be
unreasonably withheld. Any change in the control of Contractor, including, without
limitation, any transfer or acquisition of a controlling percentage of Contractor's equity or stock
or a controlling percentage of the equity or stock of CourseCo, Inc., shall constitute an
assignment for purposes of this Agreement.
15.10 Time References. Except as otherwise specifically provided in this Agreement, all
references to "days" herein shall mean calendar days and not business days,
15.11 No Third Party Beneficiaries. This Agreement is not intended for the benefit of any
specific person, entity or third party beneficiary other than the named parties hereto and no
person or entity who is not specifically named as a party herein shall have any right to enforce
the provisions of this Agreement.
15.1? Golf Course Names. The Golf Course shall be known by Sun Willows Golf Course, or
such trade name and/or t.rademarlc or logo as may from time to time be determined by City.
The parties acknowledge and understand that the names, logos, and designs used in the
operation of the Golf Course, together with appurtenant goodwill, are the exclusive property of
City. Contractor may identify the Golf Course as a golf course managed and operated by
Contractor.
15.13 Independent Contractor. Contractor shall at all times be considered an independent
contractor under this Agreement. Nothing contained in this Agreement shall be construed to be
or create a partnership or joint venture between City and its successors and assigns, on the one
part, and Contractor and its successors and assigns, on the other part. Contractor agrees to be
solely responsible for its own matters including payment of its employees, compliance with
Social Security, withholding and other such personnel regulations. Contractor's employees
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shall not be entitled to any salary, fringe benefits, pension, workers' compensation, sick leave,
insurance or any other benefit or right connected with employment with City.
15.14 Headings, The Article, Section and Subsection headings contained in this Agreement
are for convenience and reference only and are not intended to define, limit or describe the
scope or intent of any provision of this Agreement.
15.15 Survival of Covenants. Any covenant, term or provision of this Agreement which in
order to be effective must survive the termination of this Agreement shall survive any such
termination.
15.16 Applicable Law. This Agreement shall be construed and interpreted in accordance
with, and shall be governed by, the laws of the State of Washington.
15.17 No Presumption Regarding Drafter. The language of each and all paragraphs, terms
and/or provisions of this Agreement, shall, in all cases and for any and all purposes, and in any
way and all circumstances whatsoever, be construed as a whole, according to its fair meaning.
City and Contractor acknowledge and agree that the terms and provisions of this Agreement
have been negotiated and discussed between City and Contractor, and that this Agreement
reflects their mutual agreement regarding the subject matter of this Agreement. Because of the
nature of such negotiations and discussions, it would be inappropriate to deem either City or
Contractor to be the drafter of this Agreement, and therefore no presumption for or against the
drafter shall be applicable in interpreting or enforcing this Agreement.
15.18 Counterparts. This Agreement and any amendment may be executed in counterparts,
and upon all counterparts being so executed each such counterpart shall be considered as an
original of this Agreement or any amendment and all counterparts shall be considered together
as one agreement.
15.19 Authority. The parties represent for themselves that (a) such party is duly organized
and validly existing, (b) the person or persons executing this Agreement on behalf of such party
is/are duly authorized to execute and deliver this Agreement on behalf of such party, (c) by so
executing this Agreement, such party is formally bound to the terms and provisions of this
Agreement, and (d) the execution of this Agreement does not violate any provision of any other
agreement to which such party is bound.
15.20 Conflict of Interest. Contractor shall avoid all conflict of interest or the appearance of
conflict of interest in performance of this Agreement. The parties hereto hereby covenant that
during the term of this Agreement they will not employ any person to administer any portion of
this Agreement that has an interest, direct or indirect, which would conflict in any manner or
degree with the performance of services required under this Agreement.
16.0 GUARANTEE. Contractor's performance under the terms and conditions of this
Agreement are subject to a guarantee attached hereto as consideration and inducement for the
City entering into this Agreement.
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17.0 AUTHORIZATION. By signature below, each party warrants their authorization and
authority to enter into this Agreement binding their respective principals as parties to this
Agreement, and by signature below, create a conclusive presumption of such authority.
IN WITNESS WHEREOF, the undersigned have executed this Agreement effective
as of the date first above written.
CITY OF PASCO CONTRACTOR
By: By:
Gary Crutchfield, City Manager
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APPROVED AS TO FORM:
By:
Leland B. Kerr, City Attorney
GUARANTEE OF PERFORMANCE
As inducement for the City to enter into the Management Agreement above, and as
additional consideration for such Agreement, the undersigned Guarantor irrevocably and
unconditionally guarantees all payments when due, and all obligations and liabilities due and to
become due to the City from the Contractor under the above Management Agreement upon
notice by the City of any default in performance for payment by the Contractor which remains
uncured by the conclusion of the cure period provided in this Agreement.
The undersigned Guarantor specifically waives notice of nonperformance of or demand
on the Contractor, and such guarantee shall not be diminished or affected by amendments,
modification, or forbearance by either party under-the temis of the Management Agreement.
DATED this day of , 2011.
Guarantor:
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Incentive Management Fee Scenarios
Base Revenues_Possible Difference from
_ - - -
Year Amount Revenue_ — Base Revenue Amount Due
Golf Revenue _ _2012' _$864,0_48.001 900,000.00. _ _ $35,952.00 $3,595.20
10'/6 incentive �- _2013 --_ - 1 860,000.00 _ $4,048.00• _ $0.00
2014' $6,952^00' $695.20
I
Merchandise Revenue 201_2 $373,104.00, 4001000.001 _ _$26,896.00 _ $806.88
3%incentive --~ 2013 _! _410,000.001 -_ $36,896.00 $1_,106_88
2014! 360,000.001 -$13,104.00 $0.00
1 I -
Food & Bev Revenue _T 2012; $246,358.001 y241,000.001 - -_$5,358.00!-- - $0.00
7.5% incentive 2013' 253,000.001 $6,642.001 $498.15
20141 250,000.001 $3,642.001 $273.15
Total Incentive_ --
Golf revenue increase shown in 2012 of$35,652.00 of that the city retains $32,356.80 _
In each case the city retains a much greater share of the increased revenue.
AGENDA REPORT
FOR: City Counci December 1, 2011
TO: Gary Crutchfi Manager Workshop Mtg.:12/12/11
Regular Mtg.: 12/19/11
FROM: Rick Terway, irector, Administrative & Co ty Services
SUBJECT: Downtown Pasco Development Authority Agreements
1. REFERENCE(S):
1. Office Space Lease Agreement
2. Commercial Kitchen Business Incubator Lease Agreement
3. Farmers Market Lease Agreement
4. Funding Agreement
II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS:
12112: Discussion
12119: MOTION: I move to approve the lease agreement with the Downtown Pasco
Development Authority for business office space located at 401 W.
Lewis St. and further, authorize the City 'Manager to sign the
agreement.
MOTION: I move to approve the lease agreement with the Downtown Pasco
Development Authority for operation of the Commercial Kitchen
Business Incubator located at 110 South Fourth Avenue and
further, authorize the City Manager to sign the agreement.
MOTION: I move to approve the lease agreement with the Downtown Pasco
Development Authority for operation of the Farmers Market
located at S. 4`h Ave. and W. Columbia St. and further, authorize
the City Manager to sign the agreement.
MOTION: I move to approve the funding agreement with the Downtown
Pasco Development Authority and further, authorize the City
Manager to sign the agreement.
III. FISCAL IMPACT:
$60,000 annual expense (Industrial Development Infrastructure Fund)
IV. HISTORY AND FACTS BRIEF:
A) In December 2010, The Downtown Pasco Development Authority (DPDA) was
created to revitalize and promote downtown Pasco. The DPDA is becoming
operational to assume the management of the Farmers Market, the Commercial
Kitchen and lease business office space at the old Post Office building, formally
occupied by the U.S. Geological Survey.
B) Council also agreed to supplement the revitalization efforts of the DPDA with an
annual amount of $60,000 for a three year period using the Industrial
Development Infrastructure Fund.
V. DISCUSSION:
A) These actions are general "housekeeping" items in moving the operation from the
Pasco Downtown Development Association to the new authority.
B) Staff recommends approval of the DPDA Farmers Market, Commercial Kitchen
and Office Space lease agreements, and the DPDA funding agreement.
4(g)
OFFICE SPACE LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this day of December,
2011, by and between the City of Pasco, Washington, a Municipal Corporation, hereinafter
referred to as "City", and the Downtown Pasco Development Authority, a non-profit Washington
Corporation, hereinafter referred to as"DPDA."
IN CONSIDERATION of the mutual covenants contained herein and other valuable
consideration, it is agreed as follows:
1. Premises. City does hereby lease to DPDA, upon the following terms and
conditions those areas within that building designated as the "Old Pasco Post Office" located at
401 W. Lewis St. Pasco, more particularly described in Exhibit A attached hereto and
incorporated herein by, consisting of approximately 1,200 square feet as designated on the
drawing attached hereto and incorporated herein by this reference as Exhibit B, hereinafter
referred to as the"Premises."
2. Term. The term of this Lease shall be for five (5) years commencing on the 1"
day of January 2012, and ending on the 31" day of December 2016. The Parties may agree to
extend the lease term for a maximum period of five (5) years by executing a written amendment
hereto, and upon negotiation of reasonable rent for the extended term.
3. Rent. DPDA shall pay to City a total annual rent of$6,000.00 per year. Rent is
payable on or before the first day of January each and every year, in advance for that year's
occupancy of the Premises. Rent for any period less than one (1) year shall be prorated based
upon the number of days in said period.
4. Leasehold Excise Tax. DPDA shall pay any leasehold excise tax due pursuant to
RCW 84.29A to the City on or before the first day of January during each year of this
Agreement. If the State of Washington changes the leasehold excise tax or an additional tax is
imposed on such leasehold,the tax payable by the DPDA shall be correspondingly changed.
5. Use. DDPA shall use the premises for the following purposes and no others
without the prior written consent of the City: Business Office.
No other uses, activities, or operations shall be conducted by the DPDA from the leased
Premises without first obtaining the prior written consent of the City.
DPDA shall maintain the Premises in clean and sanitary conditions, free of fire or other
casualty hazards. The DPDA shall be solely responsible for the security, maintenance, and
protection of its property stored at the Premises.
6. Insurance. DPDA shall procure and maintain for the duration of the Agreement,
insurance against claims for injuries to persons or damage to property which may arise
from or in connection with the DPDA's operation and use of the Farmers Market.
Insurance shall conform to the following:
DPDA Lease Agreement- l
A. Minimum Scope of Insurance
DPDA shall obtain insurance of the types described below:
1. Commercial General Liability insurance shall be written on Insurance
Services Office (ISO) occurrence form CG 00 01 and shall cover premises and
contractual liability. The City shall be named as an insured on Lessee's
Commercial General Liability insurance policy using ISO Additional Insured-
Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement
providing equivalent coverage.
2. Property insurance shall be written on all risk basis.
B. Minimum Amounts of Insurance
DPDA shall maintain the following insurance limits:
1. Commercial General Liability insurance shall be written with limits no less
than $1,000,000 each occurrence, $2,000,000 general aggregate.
2. Property insurance shall be written covering the full value of DPDA's
property and improvements with no coinsurance provisions.
C. Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following
provisions for Commercial General Liability insurance:
1. DPDA's insurance coverage shall be primary insurance as respect the City.
Any Insurance, self-insurance, or insurance pool coverage maintained by the
City shall be excess of the DPDA's insurance and shall not contribute with it.
2. DPDA's insurance shall be endorsed to state that coverage shall not be
cancelled by either party, except after thirty (30) days prior written notice by
certified mail, return receipt requested, has been given to the City.
D. Verification of Coverage
DPDA shall furnish the City with original certificates and a copy of the amendatory
endorsements, including but not necessarily limited to the additional insured
endorsement.
E. Waiver of Subrogation
DPDA and City hereby release and discharge each other from all claims, losses and
liabilities arising from or caused by any hazard covered by property insurance on or
in connection with the premises or said building. This release shall apply only to the
extent that such claim, loss or liability is covered by insurance.
DPDA shall be solely responsible for the loss, damage, or casualty to its personal
property located at the Premises, regardless of cause. DPDA is encouraged to secure "content's
coverage" insurance for DPDA personal property.
7. Indemnity and f old Harmless. DPDA agrees to indemnify and hold the City
harmless as provided herein to the maximum extent possible under the law. Accordingly, the
DPDA agrees for itself, successors and assigns, to defend, indemnify and hold harmless the City,
its appointed and elected officials, and employees from and against liability for all claims,
damages, suits, and judgments including the cost of defense thereof, for injury to person, death,
or property damage which is caused by, arises out of, or is incident to the DPDA's exercise of its
rights and privileges as granted by this Agreement, except to the extent of the City's sole
negligence.
DPDA Lease Agreement - 2
8. Assiznment or Sublet. DPDA shall not assign or transfer this Agreement or any
interest therein, nor sublet the whole or any part of the Premises, not grant an option for
assignment, transfer or sublease for the whole or any part of the Premises, nor shall this
Agreement or any interest therein be assignable or transferable by operation of Iaw, or by any
process or proceeding of any Court or otherwise without the prior written consent of the City.
9. General Provisions. For the purpose of this Agreement, time is of the essence.
In the event of a dispute regarding the enforcement, breach, default or interpretation of this
Agreement, the parties shall first meet in a good faith effort to resolve such dispute. In the event
the dispute cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules (MAR);
venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall
apply; and the prevailing party shall be entitled to its reasonable attorney fees and costs.
10. Entire_Ap-reement. This Agreement contains the entire agreement between the
parties, and no modification of this Agreement shall be binding upon the parties unless
evidenced by an agreement in writing signed by the City and the DPDA after the date hereof.
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and
year first written above.
CITY OF PASCO
Gary Crutchfield, City Manager
DOWNTOWN PASCO DEVELOPMENT AUTHORITY
Michael Miller, President
DPDA Lease Agreement- 3
COMMERCIAL KITCHEN BUSINESS
INCUBATOR LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this day of December,
2011, by and between the City of Pasco, Washington, a Municipal corporation, hereinafter
referred to as "City", and the Downtown Pasco Development Authority, a non-profit
Washington Corporation, hereinafter referred to as "DPDA".
IN CONSIDERATION: of the mutual covenants contained herein and other valuable
consideration, it is agreed as follows:
1. Premises
City does herby lease to DPDA, upon the following terms and conditions, the building
located at 110 South Fourth Avenue for a downtown commercial kitchen business
incubator.
2. Term
The term of the Lease shall be five (5) years commencing on the I" day of January 2012,
and ending on the 31" day of December 2016. The Parties may agree to extend the lease
term for a maximum period of five (5) years by executing a written amendment hereto.
3. Use
DPDA shall use the premises for the following purposes and no others without the prior
written consent of the City: Commercial Kitchen.
No other uses, activities, or operations shall be conducted by the DPDA from the leased
Premises without first obtaining the prior written consent of the City.
DPDA shall maintain the Premises in clean and sanitary conditions, free of fire or other
casualty hazards. The DPDA shall solely responsible for the security, maintenance, and
protection of tis property stored at the Premises.
The DPDA shall have the right to rent the facility, establish rental rates, purchase
equipment, hire/dismiss staff and other actions necessary to operate the commercial
kitchen business incubator in accordance with the purposes established by the Economic
Development Administration, the North American Development Bank and Community
Development Block Grant Program,
4. Indemnifieation/Hold Harmless
DPDA shall defend, indemnify, and hold harmless the City, its officers, officials,
employees and volunteers from and against any and all claims; suits, actions, or liabilities
for injury or death of any person, or for Ioss or damage to property, which arises out of
DPDA's use of Premises, or from the conduct of its business, or from any activity, work
or thing done, permitted, or suffered by DPDA in or about the Premises, except only such
injury or damage as shall have been occasioned by the sole negligence of the City.
DPDA will require each and every user at the commercial kitchen business incubator to
sign a Contract of Indemnity on the form set forth as Exhibit "A" hereto. Each user of the
Commercial Kitchen Lease- I
facility shall be required to sign a new agreement annually and the DPDA shall hold and
maintain the agreement for a period of at least three (3) years from the date of signing.
5. Assignment or Sublet
DPDA shall not assign or transfer this Agreement or any interest therein, nor sublet the
whole or any part of the Premises, not grant an option for assignment, transfer or sublease
for the whole or any part of the Premises, nor shall this Agreement or any interest therein
be assignable or transferable by operation of law, or by any process or proceeding of any
Court or otherwise without the prior written consent of the City.
6. Insurance
DPDA shall procure and maintain for the duration of the Agreement, insurance against
claims for injuries to persons or damage to property which may arise from or in
connection with the DPDA's operation and use of the Commercial Kitchen. Insurance
shall conform to the following:
A. Minimum Scope of Insurance
DPDA shall obtain insurance of the types described below:
I. Commercial General Liability insurance shall be written on Insurance
Services Office (ISO) occurrence form CG 00 01 and shall cover premises and
contractual liability. The City, shall be named as an insured on Lessee's
Commercial General Liability insurance policy using ISO Additional Insured-
Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement
providing equivalent coverage.
2. Property insurance shall be written on all risk basis.
B. Minimum Amounts of Insurance
DPDA shall maintain the following insurance limits:
1. Commercial General Liability insurance shall be written with limits no less
than $1,000,000 each occurrence, $2,000,000 general aggregate.
2. Property insurance shall be written covering the full value of DPDA's
property and improvements with no coinsurance provisions.
C. Other Insurance Provisions
The insurance policies are to contain; or be endorsed to contain, the following
provisions for Commercial General Liability insurance:
I. DPDA's insurance coverage shall be primary insurance as respect the City.
Any Insurance, self-insurance, or insurance pool coverage maintained by the
City shall be excess of the DPDA's insurance and shall not contribute with it.
2. DPDA's insurance shall be endorsed to state that coverage shall not be
cancelled by either party, except after thirty (30) days prior written notice by
certified mail, return receipt requested,has been given to the City.
D. Verification of Coverage
DPDA shall furnish the City with original certificates and a copy of the amendatory
endorsements, including but not necessarily limited to the additional insured
endorsement.
E. Waiver of Subrogation
DPDA and City hereby release and discharge each other from all claims, losses and
liabilities arising from or caused by any hazard covered by property insurance on or
Commercial Kitchen Lease-2
in connection with the premises or said building. This release shall apply only to the
extent that such claim, loss or liability is covered by insurance.
7. Prol2erty Insurance
City shall purchase and maintain during the term of the agreement all-risk property
insurance covering the buildings for their full replacement value without any coinsurance
provisions.
S. Fees
The DPDA shall establish appropriate fees and charges for the use of the commercial
kitchen business incubator. The use of such funds collected shall be limited to payment of
expenditures for staff salaries, advertising, promotion, insurance, utilities, maintenance,
management, and other costs directly attributable to the operation of the Incubator. After
the payment of expenditures, any excess funds shall be used for operating the DPDA.
9. Cleaning/Maintenance
The DPDA shall be responsible, at its own cost and expense, for the routine cleaning,
maintenance and upkeep of the commercial business incubator building, including
supplies as required to operate the premises and minor, nonstructural, repairs, including
plumbing (i.e., faucets, fixtures and exposed pipes and electrical (i.e., switches, outlets,
fixtures, etc.) all in accordance with customary standards for similar facilities and prudent
maintenance practices.
In the event that the costs of maintenance or repairs exceed the revenues derived from the
operation of the commercial kitchen the DPDA should seek alternative funds. If none are
available the DPDA shall provide City with documentation of need and revenue
shortage.
10. Funds
On an annual basis, the DPDA shall apply for an allocation of CDBG funds in
accordance with the established schedule and procedures. Any funds awarded shall be
disbursed in accordance with the provisions of the CDBG Subrecipient Grant Agreement.
11. Rules/Guidelines
The DPDA shall administer the commercial kitchen business incubator in accordance
with the provisions of the grant agreements with the U.S. Economic Development
Administration, North American Development Bank, and US Department of Housing &
Urban Development. The DPDA shall file required job creation and other progress
reports in a timely manner.
The DPDA shall maintain written rules and guidelines for the commercial kitchen
business incubator operation.
The DPDA shall maintain adequate financial records and submit a written report to the
City Manager by February 15'x' of each year. The records shall include the incubator's
income, expenditures, users, and other market activities. Such records shall be kept for at
least a period of three (3) years or longer at the direction of the City Manager.
The DPDA shall comply with applicable federal, state, and local laws and regulations.
Commercial Kitchen Lease -3
12. Anti-Discrimination
No person shall, on the grounds of race, color, sex, religion or national origin, be
excluded from participation in the commercial kitchen business incubator activities or be
subject to discrimination.
13. Termination
This Agreement shall continue until either party gives sixty (60) days written notice to
the other party of its termination.
The terms and conditions of this Agreement may be modified only in writing on the
signature of both parties.
14. General Provisions
For the purpose of this Agreement, time is of the essence. In the event of a dispute
regarding the enforcement, breach, default or interpretation of this Agreement, the parties
shall first meet in a good faith effort to resolve such dispute. In the event the dispute
cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules
(MAR); venue shall be placed in Franklin County, Washington, the laws of the State of
Washington shall apply; and the prevailing party shall be entitled to its reasonable
attorney fees and costs.
15. Entire Agreement
This Agreement contains the entire agreement between the parties, and no modification
of this Agreement shall be binding upon the parties unless evidenced by an agreement in
writing signed by the City and the DPDA after the date hereof.
IN WITNESS WHEREOF,the parties hereto have caused this agreement to be executed
this , day of ,2011.
CITY OF PASCO DOWNTOWN PASCO DEVELOPMENT
AUTHORITY
Gary Crutchfield, City Manager Michael Miller, President
Commercial Kitchen,Lease-4
EXHIBIT "A"
CONTRACT OF INDEMNITY FOR
COMMERCIAL KITCHEN
AGREEMENT made this day of , 20_, between
, herein called `INDEMNITOR", and the Downtown
Pasco Development Authority, a nonprofit Washington corporation, herein called
`INDEMNITEE", witnesseth:
Whereas, the INDEMNITOR desires to lease kitchen space in accordance with the
permitted uses of the Downtown Commercial Kitchen in the City of Pasco, Washington; and
Whereas, the INDEMNITEE desires to encourage Commercial Kitchen activity and has
an agreement with the City of Pasco to provide a Commercial Kitchen at 110 S. Fourth Ave.
NOW, THEREFORE, in consideration of the above-stated premises, INDEMNITOR
agrees that it will indemnify INDEMNITEE and the City of Pasco against, and save
INDEMNITEE and the City of Pasco harmless from and against all claims, suits, damages,
costs, losses and expenses in any manner, including but not limited to attorney's fees resulting
from, arising out of, or connected with the INDEMNITOR'S use of kitchen space in accordance
with those permitted uses of the Downtown Commercial Kitchen.
THIS AGREEMENT shall be binding on and inure to the benefit of the heirs, executors,
administrators, successors and assigns of the respective parties hereto.
DATED this first date written above.
INDEMNITOR:
By
DOWNTOWN PASCO DEVELOPMENT AUTHORITY,
INDEMNITEE:
By:
Commercial Kitchen Lease -5
FARMERS MARKET LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this day of December, 2011, by
and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as
"City", and the Downtown Pasco Development Authority, a non-profit Washington Corporation,
hereinafter referred to as -`DPDA."
IN CONSIDERATION of the mutual covenants contained herein and other valuable
consideration, it is agreed as follows:
I. Premises
City does herby lease to DPDA, upon the following terms and conditions, the public
parking lot at Fourth and Columbia Street, in the City of Pasco, as well as "Peanuts
Park", a public plaza on the south side of Lewis Street (a diagram of said parking lot and
plaza being attached hereto and marked Exhibit "A" and made a part hereof) for a Pasco
Farmers Market. Pavilion/Parking Area will be used for public parking when not in use
by Farmers Market or City.
2. Term
The term of this Lease shall be five (5) years commencing on the I" day of January 2012,
and ending on the 3151 day of December 2016. The Parties may agree to extend the least
term for a maximum period of five (5) years by executing a written amendment hereto.
3. Use
DPDA shall use the premises for the following purposes and no others without the prior
written consent of the City: Farmers Market.
No other uses, activities, or operations shall be conducted by the DPDA from the leased
Premises without first obtaining the prior written consent of the City.
DPDA shall maintain the Premises in clean and sanitary conditions, free of fire or other
casualty hazards. The DPDA shall solely responsible for the security, maintenance, and
protection of its property stored at the Premises,
4. Indemnification/Hold Harmless
DPDA shall defend, indemnify, and hold harmless the City, its officers, officials,
employees and volunteers from and against any and all claims, suits, actions, or liabilities
for injury or death of any person, or for loss or damage to property, which arises out of
DPDA's use of Premises, or from the conduct of its business, or from any activity, work
or thing done, permitted, or suffered by DPDA in or about the Premises, except only such
injury or damage as shall have been occasioned by the sole negligence of the City.
5. Assignment or Sublet
DPDA shall not assign or transfer this Agreement or any interest therein, nor sublet the
whole or any part of the Premises, not grant an option for assignment, transfer or sublease
for the whole or any part of the Premises, nor shall this Agreement or any interest therein
be assignable or transferable by operation of law, or by any process or proceeding of any
Court or otherwise without the prior written consent of the City. During periods of non-
Farmers Mkt Lease - t
usage by DPDA the City may use the facility for other events or programs and will
coordinate with DPDA as necessary.
b. Insurance
DPDA shall procure and maintain for the duration of the Agreement, insurance against
claims for injuries to persons or damage to property which may arise from or in
connection with the DPDA's operation and use of the Farmers Market. Insurance shall
conform to the following:
A. Minimum Scope of Insurance
DPDA shall obtain insurance of the types described below:
1. Commercial General Liability insurance shall be written on Insurance
Services Office (ISO) occurrence form CG 00 01 and shall cover premises and
contractual liability. The City shall be named as an insured on Lessee's
Commercial General Liability insurance policy using ISO Additional Insured-
Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement
providing equivalent coverage.
2. Property insurance shall be written on all risk basis.
B. Minimum Amounts of Insurance
DPDA shall maintain the following insurance limits:
1. Commercial General Liability insurance shall be written with limits no less
than $1,000,000 each occurrence, $2,000,000 general aggregate.
2. Property insurance shall be written covering the full value of DPDA's
property and improvements with no coinsurance provisions.
C. Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following
provisions for Commercial General Liability insurance:
1. DPDA's insurance coverage shall be primary insurance as respect the City.
Any Insurance, self-insurance, or insurance pool coverage maintained by the
City shall be excess of the DPDA's insurance and shall not contribute with it.
2. DPDA's insurance shall be endorsed to state that coverage shall not be
cancelled by either party, except after thirty (30) days prior written notice by
certified mail, return receipt requested, has been given to the City.
D. Verification of Coverage
DPDA shall furnish the City with original certificates and a copy of the amendatory
endorsements, including but not necessarily limited to the additional insured
endorsement.
E. Waiver of Subrogation
DPDA and City hereby release and discharge each other from all claims, losses and
liabilities arising from or caused by any hazard covered by property insurance on or
in connection with the premises or said building. This release shall apply only to the
extent that such claim, loss or liability is covered by insurance.
7. Prone y Insurance
City shall purchase and maintain during the term of the agreement all-risk property
insurance covering the buildings for their full replacement value without any coinsurance
provisions.
Farmers Mkt Lease -2
81 Vendor's Indemnity
DPDA will require each and every vendor at the Pasco Farmers Market to sign a Contract
of Indemnity on the form set forth as Exhibit `B" hereto. Each vendor shall be required to
sign a new agreement annually and the DPDA shall hold and maintain the agreement for
a period of at least three (3) years from the date of signing. DPDA shall also determine
the type and amounts of insurance carried by each vendor.
9, Market Policies and Procedures
DPDA shall maintain and enforce policies and procedures appropriate to the activities
conducted at the Farmers Market and Peanuts Park
10. Peanuts Park
The Peanuts Park area shall be made available for food concessions, artworks and crafts,
and entertainment during the same days that the Farmers Market is in operation, or
pursuant to special permit issued by the City.
11, Days of Oiieration
Specific days of operation must be approved in advance by the City Manager or his
designee and such approval shall not be unreasonably withheld.
12. Fees
The vendor fees for the Market shall be set yearly by the DPDA and shall be uniformly
applied for each vendor class,
13. Use of Fees Proceeds
The use of all such fees collected shall be limited to payment of expenditures for
advertising, promotion, management, and other costs attributable to the operation of the
Market. After the payment of expenditures, any excess funds shall go to the DPDA for
use on various projects to benefit the Pasco Farmers Market or operation of DPDA.
14, Cleaning
The DPDA shall maintain the cleanliness of the Market area and Peanuts Park restroom
facilities. Additionally, for each day that Farmers Market is conducted, DPDA shall be
responsible to clean the parking lot and park of litter. DPDA shall place all trash, litter
and debris in an appropriate container following each day of operation.
15. PDDA Maintenance/Stora e
The DPDA shall be responsible, from May through October at its own cost and expense,
for the routine maintenance and upkeep of the market area and Peanuts Park (See
attached map Exhibit A) and for providing adequate, portable restroom (ADA
Accessible) facilities, including supplies as required for operating the premises. Routine
maintenance shall be defined as litter control, cleaning hard surface areas, monitor area
for potential hazards.
DPDA is authorized to use the old restroom facility for storage of Farmers Market
materials, and for no other purpose, without City's written permission.
Farmers Mkt Lease - 3
16. City Maintenance
City shall, at its own cost and expense, maintain and repair all structural portions of the
premises, including electrical and plumbing repairs that require alteration of structural
portions of the premises, in a good and safe condition. Structural portions of the
premises shall include without limitation, roof, exterior walls, structural members, and
floors, City shall determine if portable restroom facilities are required for the months of
November through April and shall provide such, if required,
17. Utilities
DPDA shall pay for the electrical charges billed with meter 432286 (located on the
building at the east end of the parking lot) as well as for charges billed on the temporary
service meter 927572, for its special events. City shall pay for all other electric meter
charges.
18. Records
The DPDA shall maintain adequate financial records and submit a written report to the
City Manager at the conclusion of each Market season, The records shall include the
Market's income, expenditures, vendors, and other market activities. Such records shall
be kept for at least a period of six (6) years or longer at the direction of the City Manager,
19. General Provisions
For the purpose of this Agreement, time is of the essence. In the event of a dispute
regarding the enforcement, breach, default or interpretation of this Agreement, the parties
shall first meet in a good faith effort to resolve such dispute. In the event the dispute
cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules
(MAR); venue shall be placed in Franklin County, Washington, the laws of the State of
Washington shall apply; and the prevailing party shall be entitled to its reasonable
attorney fees and costs.
20. Anti-Discrimination
No person or vendor shall, on the grounds of race, color, sex, religion, or national origin,
be excluded from participation in the Farmers Market activities or be subject to unlawful
discrimination by DPDA or its agents.
21. Termination
Either party may terminate this Agreement upon the giving of sixty (60) days written
notice to the other party,
Farmers Mkt Lease -4
22. Entire Agreement
This Agreement contains the entire agreement between the parties, and no modification
of this Agreement shall be binding upon the parties unless evidenced by an agreement in
writing signed by the City and the DPDA after the date hereof
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this , day of , 2011.
CITY OF PASCO
Gary Crutchfield, City Manager
DOWNTOWN PASCO DEVELOPMENT AUTHORITY
Michael Miller, President
Farmers Mkt Lease- 5
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EXHIBIT "B"
CONTRACT OF INDEMNITY FOR
FARMERS' MARKET PARTICIPANTS
AGREEMENT made this day of , 20_, between
, herein called `INDEMNITOR", and the Downtown
Pasco Development Authority, a nonprofit Washington corporation, herein called
`INDEMNITEE", witnesseth:
Whereas, the INDEMNITOR desires to sell commodities in accordance with those
permitted in the Farmers Market Policies and Procedures in one or more farmers market type
settings in the City of Pasco, Washington; and
Whereas, the INDEMNITEE desires to encourage "Farmer's Market" activity and has
an agreement with the City of Pasco to provide a "Farmers' Market" at Pasco's parking area
south of Peanuts Park in downtown Pasco and at Peanuts Park;
NOW, THEREFORE, in consideration of the above-stated premises, INDEMNITOR
agrees that it will indemnify INDEMNITEE and the City of Pasco against, and save
INDEMNITEE and the City of Pasco harmless from and against all claims, suits, damages,
costs, losses and expenses in any manner, including but not limited to attorney's fees resulting
from, arising out of, or connected with the INDEMNITOR'S sale of commodities in accordance
with those permitted in the Farmers Market Policies and Procedures in a "Farmers Market" in
the parking lot adjacent "Peanuts Park" or in "Peanuts Park" in downtown Pasco.
THIS AGREEMENT shall be binding on and inure to the benefit of the heirs, executors,
administrators, successors and assigns of the respective parties hereto.
DATED this first date written above.
INDEMNITOR:
By
DOWNTOWN PASCO DEVELOPMENT AUTHORITY,
INDEMNITEE:
By:
Farmers Mkt Lease -7
CITY OF PASCO AND DOWNTOWN PASCO DEVELOPMENT AUTHORITY
FUNDING AGREEMENT
THIS AGREEMENT, between the City of Pasco (City), and the Downtown Pasco
Development Authority (DPDA) establishes parameters for City supplements to the DPDA
budget and for DPDA use of those supplemental funds.
Background, In December of 2010, the Pasco City Council created the Downtown
Pasco Development Authority though Ordinance 3985. The DPDA is authorized by
RCW 39.21.730 and was created to provide for the revitalization and enhancement of the
Downtown Pasco area. Ordinance 3985 contains the DPDA Charter and Bylaws. The
Charter and Bylaws further describe efforts and responsibilities of the DPDA. The DPDA
has received its certificate of incorporation from the State of Washington as a nonprofit
corporation.
Budget. In creating the DPDA, the City Council acknowledged that the Authority would
have operational expenses that exceed revenues. The City has obligated an annual
amount of$60,000 for a three year period to supplement the revitalization efforts of the
DPDA. This supplemental source of funding for the DPDA is to be combined with
revenue from the Farmer's Market and Downtown Pasco Specialty Kitchen in the
estimated amount of $34,000 annually. This allows for a total operating budget of
approximately $94,000.
The City of Pasco will deposit $5,000 per month into the DPDA bank account located at
Sterling Savings Bank in Pasco. This monthly deposit reflects the City Council's
intention to provide the support necessary to account for $60,000 of funding as an
operating subsidy for the DPDA.
All the monies provided by the City are to be spent for the sole purpose of operating the
DPDA to achieve its purpose as identified in City of Pasco Ordinance 3985 and its
Charter and By-Laws.
Reports, A fornial presentation to the City Council by the DPDA board shall be given
on or before February 15`h each year. The DPDA shall deliver quarterly written status
reports detailing, the activities, accomplishments and financial status of the DPDA to the
Pasco City Manager.
Distaute Resolution, Failure of the DPDA to either provide the accounting or remit
disallowed funds as required herein shall constitute a breach of this agreement. The
remedies available to the City shall include but not be limited to, return of all funds
delivered to the DPDA and denial of the right of the DPDA to apply for any future
funding. In the event suit is filed to enforce the terms and conditions of this agreement
the non-prevailing party agrees to pay the costs and reasonable attorney fees of the
prevailing party.
Term. This agreement shall be effective January 1, 2012 and shall expire on December
31, 2014; provided, however, the either party may terminate the agreement with at least
one (1) year written notice delivered to the President of the DPDA and or the Pasco City
Manager.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this , day of
CITY OF PASCO
Gary Crutchfield, City Manager
DOWNTOVV-N PASCO DEVELOPMENT AUTHORITY
Michael Miller, President
AGENDA REPORT
FOR: City Counci December 8, 201 1
TO: Gary Crutch' Cit Manager Workshop Mtg.: 12/12/11
Regular Mtg.: 12/19/11
FROM Robert Gear, Fir ief
SUBJECT: Franklin County Comprehensive Emergency Management Plan
1. REFERENCE(S):
1. Resolution
2, Franklin County Comprehensive Emergency Management Plan (document is too
large to be included with agenda report, and may be accessed on the Franklin
County Emergency Management-vebsite www.franklinem.or.g)
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
12/12: Discussion
12/19. MOTION: I move to approve Resolution No. , adopting the
2011 updates to Franklin County Comprehensive Emergency
Management Plan.
111. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A) Franklin County Emergency Management is required by federal and state law to
have a "Comprehensive Emergency Management Plan". This plan defines the
methods, procedures and roles and responsibilities for participants in the event of
disasters within Franklin County
B) Periodically, Franklin County Emergency Management finds a need to update the
plan.
V. DISCUSSION:
A) The 2011 updates of the Franklin County Comprehensive Emergency
Management Plan were minor "housekeeping' changes that did not affect
participation or responsibilities to the City of Pasco.
B) Staff recommends that Council adopt the 2011 Franklin County Comprehensive
Emergency Management Plan.
4(h)
RESOLUTION NO.
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON
ACCEPTING AND ADOPTING THE 2011 FRANKLIN COUNTY
COMPREHENSIVE EMERGENCY MANAGEMENT PLAN.
WHEREAS, the City of Pasco is part of an interlocal agreement which establishes
Franklin County Emergency Management governed by RCW 38.52.070; and
WHEREAS, the Franklin County Comprehensive Emergency Management Plan
establishes the framework for an effective system to mitigate emergencies and disasters within
the County and its municipalities; and
WHEREAS, the plan outlines the roles and responsibilities of the City of Pasco in the
event of natural, manmade or technological emergencies or disasters; and
WHEREAS, It is important that the city is able to assist its citizens in the event of
emergencies or disasters; NOW, THEREFORE,
BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PASCO,
1. Accepts and adopts the Franklin County Comprehensive Emergency Management
Plan.
2. Will comply with the sections of the plan that addresses the responsibility of the City
of Pasco for emergencies or disasters affecting the city.
3. Recognizes that in the event of a major emergency or disaster outside assistance to
the community may take up to 72 hours. The city will prepare itself to operate
independently for up to 72 hours.
4. Will encourage the citizens of the City of Pasco to prepare themselves to survive up
72 hours without assistance of the City, County, State or Federal Government.
PASSED by the City Council of the City of Pasco at its regular meeting this 19th day of
December, 2011.
Matt Watkins, Mayor
ATTEST: APPROVED AS TO FORM:
Debra L. Clark, City Clerk Leland B. Kerr, City Attorney
AGENDA REPORT
FOR: City Counc' December 5, 2011
TO: Gary Crutc 'e ty Manager Workshop Mtg.: 12/12/11
Regular Mtg.. i2/I9/11
FROM Robert Gear, Fi 'h' f
SUBJECT: 2011 Franklin County Hazard Mitigation Plan Update
I. REFERENCE(S):
1. Synopsis of Plan Revisions
2. Resolution
3. 2011 Franklin County Hazard Mitigation Plan (document is too large to be included
with agenda report, and may be accessed on the Franklin County Emergency
Management website www.franklinem.org)
IL ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
12112: Discussion
12/19: MOTION; 1 move to approve Resolution No. , adopting the 2011
update of the Franklin County Emergency Management Hazard
Mitigation Plan.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A) Hazard mitigation is any action taken to permanently eliminate or reduce the long
term risk to human life and property from natural or manmade disasters, Federal
law requires the development and updating of hazard mitigation plans as a
condition of eligibility for federal grant assistance.
B) The Franklin County Hazard Mitigation Plan was developed in 2004 jointly
between Franklin County Emergency Management and participating local
government agencies.
V. DISCUSSION:
A) The 2011 updates of the Hazard Mitigation Plan are "housekeeping" in nature and
place no new requirements on the city.
B) Actions required of the city are;
1. Coordinating with Franklin County Emergency Management to update and
maintain plan as needed.
2. Implementing Pasco specific portions of the plan would require applying for
hazard mitigation grant funding.
C) Staff recommends that Council adopt the 2011 Franklin County Hazard
Mitigation Plan.
4(i)
A synopsis of the revisions made to the various chapters of the plan is listed below.
Chapter 1
• Updated names of the Steering Committee and Planning Committee members
• Replaced important dates and elements in the plan development process to reflect actions
taken to update the 2004 HMP to the five year 2009 update.
• Changed the plan evaluation and update schedule from 2005-2009 to meet a new
schedule to update the plan through the years 2009-2014.
• Removed the special purpose districts
Chapter 2
• Updated the Population section to show the forecasted population growth for the years
2010 through 2030. This was done using the Washington State Office of Financial
Management, These numbers were also confirmed with Franklin County GIS.
Chapter 3
• No changes to the Mitigation Goals and Objectives.
• Incorporated Chapter Five Proposed Mitigation Initiatives of the 2004 HMP, with
Chapter three.
• There were only minor changes to some of the Proposed Mitigation Initiatives. For the
most part the Initiatives remained the same due to lack of funding.
Chapter 4
• Removed all Mitigation 20120 software data information,
Chapter 5
• Due to incorporation to Chapter three of this plan Chapter five is now the Appendices.
Chapter 6—Has been omitted from the plan.
RESOLUTION NO.
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON ACCEPTING
AND ADOPTING THE FRANKLIN COUNTY HAZARD MITIGATION PLAN
WHEREAS, the facilities, operations and personnel of the City of Pasco are vulnerable to the
human and economic costs of natural, technological and societal disasters; and
WHEREAS, the City of Pasco recognizes the importance of reducing or eliminating these
vulnerabilities for the overall good and welfare of the community; and
WHEREAS, the City of Pasco has been an active participant in the Franklin County Hazard
Mitigation Task Force, which has established a comprehensive, coordinated planning process to eliminate
or decrease these vulnerabilities; and
WHEREAS, the City of Pasco's representatives and staff have identified,justified and prioritized
a number of proposed projects and programs needed to mitigate the vulnerabilities of the City of Pasco to
the impacts of future disasters, NOW, THEREFORE,
BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PASCO,
1) The City of Pasco hereby accepts and approves of its designated portion of the Franklin
County Hazard Mitigation Plan including any required changes by FEMA or State
Emergency Management.
2) The City of Pasco hereby accepts, approves of and commits to participate and cooperate in
the implementation of the county-wide mitigation initiatives.
3) The directors and staff of the City of Pasco are requested and instructed to pursue available
funding opportunities for implementation of the proposals designated therein.
4) The City of Pasco will, upon securing such funding or other necessary resources seek to
implement the proposals contained in its section of the strategy.
5) The City of Pasco will continue to participate and cooperate in the Hazard Mitigation Task
Force to update and expand the Franklin County Hazard Mitigation Plan in the years ahead.
6) The City of Pasco will further encourage other businesses, industries and community groups
within Pasco to also participate in the Hazard Mitigation Task Force to support the Franklin
County Hazard Mitigation Plan in the years ahead.
PASSED by the City Council of the City of Pasco at its regular meeting this 19'" day of
December, 2011.
Matt Watkins, Mayor
ATTEST; APPROVED AS TO FORM:
Debra L. Clark, City Clerk Leland B. Kerr, City Attorney,
AGENDA REPORT
FOR: City Council December 8, 2011
TO: Gary Crutchf41putyt anager Workshop Mtg.: 12/12/11
FROM; Stan Strebel, Manager
",0 X
SUBJECT: Correspondence from Tri-Cities Regional Public Facilities District
L REFERENCE(S):
1. October 18, 2011 letter from TCRPFD
11. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
12/12: Discussion
11I. FISCAL IMPACT:
TBD
IV. HISTORY AND FACTS BRIEF:
A) As Council is aware, the Tri-Cities Regional Public Facilities District (TCRPFD)
has been considering which of four projects it should recommend to voters for
funding approval at an election proposing an increase in the sales tax.
B) The TCRPFD Board recently began discussing the concept of limiting its role to
capital funding of projects which would be operated by other entities (presumably
cities and/or public facility districts) with such entities being responsible for
ongoing project operating expenses. The attached letter highlights the discussion
and invites the cities and public facility districts to comment.
C) The Board decided to postpone its continued discussion of this issue from
November 9 to its next meeting, which will be held December 14,
V. DISCUSSION:
A) In discussions the Board identified a number of reasons to consider limiting the
role of TCRPFD to capital funding of projects only, including:
• The lack of operational expertise and experience associated with the
RPFD as compared to local PFDs and cities,
• The ability, potentially, to accomplish more projects if limited sales tax
revenue are not obligated for operational expenses (often the most costly
part of a project).
• The opportunity to provide more careful screening of projects if an
additional (governmental) sponsor must necessarily assume operational
costs.
B) Some points in opposition to the concept were also made, including:
• Since the project(s) would be regional in nature, the burden of operating
costs should be a regional responsibility.
• Some worthy projects without additional sponsorship might not be
realized.
C) Staff suggests that Council discuss this item and provide direction to staff.
4(j)
Tri-Cities Regional Public Facilities District
President
Steve Young,Vice-President
Sandra Kent,SecretatylTreasurer
October 18, 2011 Don Britain
Rebecca Francih
John Givens
Gary Crutchfield, City Manager John Merle
City of Pasco Ed Rn,ch
525 N, 3rd Avenue SheilaS14llivall
Pasco, WA 99301
Dear Mr. Crutchfield:
As you may be aware, the Tri-City Regional Public Facilities District (TCRPFD) is continuing a process
to evaluate projects for possible consideration by the voters as early as November 2012, At the meeting
of October 12,the Board discussed the issue of operating expenses, which may include shortfalls from
operational revenue potentially associated with any project. A number of considerations were discussed,
including:
• State of the national economy
• The question of the sales tax rate increase/duration that voters are likely to approve
• Multiple projects with construction cost estimates as follows:
• Aquatic Facilit}............................................$37.5 million
• Perfonning Arts Center..................................$36 million
• Reach interpretative Center............................$14 million
• Three Rivers Convention Center....................$15 million
• Whether the TCRPFD Board is ready to become an operational entity in addition to a
construction financing entity
• The need to be able to evaluate submitted pro-formas thoroughly and carefully and within the
Board's time table
Discussion of the above items, among others, led the Board to determine to invite the cities,the public
facility districts and the project sponsors to consider and comment on the concept of the TCRPFD
limiting its role to providing construction financing for projects which can be backed by either a city(ies)
or PFD(s) or other entity which is capable of guaranteeing operational expenses for the life of a project,
thus allowing the RPFD greater capacity and flexibility to consider providing regional projects of
significance.
As the Board will be discussing this issue at its meeting of November 9(5:45pm, Pasco City Hall), we
invite your written continent in advance of the meeting(please send to Gwen Luper,Benton Franklin
Council of Governments, P. 0. Box 216, Richland,WA 99352; or�.luperiOfco ..us), or your
participation that evening.
Sincerely,
f
Matt Watkins, President
Tri-Cities Regional Public Facilities District
PO Box 293 4 Pasco,WA 99301 4 509.545.3404