HomeMy WebLinkAbout2010.01.19 Council Meeting Packet AGENDA
PASCO CITY COUNCIL
Regular Meeting 7:00 p.m. January 19,2010
Please note that our Council meeting will cake place on Tuesday,January 19
as City Hall will be closed Monday, January 18 in honor of Martin Luther King Jr.
1. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance
3. CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine by the
City Council and will be enacted by roll call vote as one motion(in the form listed below). There will be
no separate discussion of these items. If further discussion is desired by Councilmembers or the public,
the item may be removed from the Consent Agenda to the Regular Agenda and considered separately.
(a) Approval of Minutes:
1. Minutes of the Pasco City Council Meeting dated January 4,2010.
(b) Bills and Communications: (A detailed listing of claims is available for review in the Finance
Manager's office.)
1. To approve General Claims in the amount of$1,146,939.50 ($26,113.23 in the form of Wire
"Transfer No. 5385; and $1,1.20,826.27 consisting of Claim Warrants numbered 175044
through 175208). (2009 EXPENSES)
2. To approve General Claims in the amount of$619,949.73 ($41,632.42 in the form of Wire
Transfer No. 5391; and$578,317.31 consisting of Claim Warrants numbered 1 75209 through
175258). (2010 EXPENSES)
3. To approve bad debt write-0ffs for utility billing, ambulance, cemetery, general accounts,
miscellaneous accounts, and Municipal Court (non-criminal, criminal, and parking) accounts
receivable in the total amount of$248,060.91 and, of that amount, authorize $175,605.52 be
turned over for collection.
(c) Federal Legislative Consulting Agreement:
1, Agenda Report from Gary Crutchfield,City Manager dated January 6, 2010.
2. Proposed Agreement.
To approve the agreement with Gordon Thomas .Honeywell Governmental Affairs for federal
legislative consultant services and, further, authorize the City Manager to sign the agreement.
(RC) MOTION: I move to approve the Consent Agenda as read.
4. PROCLAMATIONS AND ACKNOWLEDGMENTS:
(a)
(b)
(c)
5. VISITORS-OTHER THAN AGENDA ITEMS:
(a)
(b)
(c)
6. REPORTS FROM COMMITTEES AND/OR OFFICERS:
(a) Verbal Reports from Councilmembers
(b)
(c)
7. PUBLIC HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO-
(None)
Regular Meeting 2 January 19,2010
8. ORDINANCES AND RESOLUTIONS NOT RELATING TO PUBLIC HEARINGS:
(a) Resolution No. , a Resolution confirming Mayoral appointments of Councilrr�embers to
various Boards and Committees.
1. Agenda Report from Gary Crutchfield,City Manager dated January 14, 2010.
2. Resolution.
3. Proposed list of Board and Committee Assignments for 2010-2011.
MOTION: I move to approve Resolution No. , confirming Mayoral appointments to
various Boards and Committees.
9. UNFINISHED BUSINESS:
(None)
10. NEW BUSINESS,
(a) Potential Land Exchange with DNR:
1. Agenda Report from Gary Crutchfield, City Manager dated January 6, 2010,
2. Vicinity Map.
3. Letter to City Manager from DNR dated 11/30/09.
4. proposed Agreement(Letter of Intent).
MOTION: I move to approve the letter of intent with the Washington State Department of
Natural Resources and, further,authorize the Mayor to sign the agreement.
11. MISCELLANEOUS DISCUSSION:
(a)
(b)
(t)
1.2, EXECUTIVE SESSION:
(a)
(b)
(C)
13. ADJOURNMENT.
(RC) Roll Call Vote Required
* Item not previously discussed
MF# "Master File#......
Q Quasi-Judicial Matter
REMINDERS:
1. 7:00 p.m., Wednesday,January 20, Robinson Elementary School, 125 S. Wehe—Community Forum.
2. 12:00 p.m., Thursday, January 21, 515 W. Clark Street — Pasco Downtown Development Association
Board Meeting. (COUNCILMEMBER AL YENNEY,Rep.; MATT WATKINS,Alt.)
3. 3:30 p.m., Thursday, January 21, 502 Boeing Street — Franklin County Emergency Management Board
Meeting. (MAYOR JOYCE OLSON,Rep.; COUNCILMEMBER TOM LARSEN, Alt.)
MINUTES
REGULAR MEETING PASCO CITY COUNCIL. JANUARY 4, 2010
CALL TO ORDER:
The meeting was called to order at 7.00 p.m, by Joyce Olson, Mayor.
ROLL CALL;
Councilmembers present: Rebecca Francik, Michael Garrison, Robert Hoffmann, Tom
Larsen, Joyce Olson, Matt Watkins and Al Yenney.
Staff present: Gary Crutchfield, City Manager; Leland B. Kerr, City Attorney; Stan
Strebel, Deputy City Manager; Richard Terway, Administrative & Community Services
Director; Rick White, Community & Economic Development Director; Bob Alberts,
Public Works Director; Denis Austin, Police Chief and Bob Gear, Fire Chief.
The meeting was opened with the Pledge of Allegiance.
Election of Mayor and Mayor Pro-Tem:
Mr. Watkins nominated Joyce Olson for Mayor.
With no further nominations, Mayor Olson closed nominations.
Ms. Olson was declared Mayor for the years 2010 and 2011 by unanimous Roll Call vote.
Mr. Garrison nominated Matt Watkins for Mayor Pro-Tem.
Mr. Yenney nominated Robert Hoffmann for Mayor Pro-Tcm.
With no further nominations, Mayor Olson closed nominations.
Mr. Watkins was declared Mayor Pro-Tem by the following Roll Call vote:
Watkins: Olson, Francik, Garrison, Watkins.
Hoffmann: Larsen, Hoffmann, Yenney.
CONSENT AGENDA:
(a) Approval of Minutes:
Minutes of the Pasco City Council Meeting dated December 21, 2009.
(b) Bills and Communications:
To approve General Claims in the amount of$664,437.94 ($130,942.32 in the form of
Wire Transfer Nos. 5375 and 5378; $8,133.79 in the fonn of Electronic Fund Transfer
No. 1009; and $525,361.83 consisting of Claim Warrants numbered 174900 through
175029). (2009 EXPENSES)
To approve General Claims in the amount of$994,446.46 ($994,446,46 consisting of
Claim Warrants numbered 175030 through 175043). (2010 EXPENSES)
To approve Payroll Claims in the amount of$2,928,869.30, Voucher Nos. 40547 through
40638; and EFT Deposit Nos. 30034377 through 30035191.
(c) Special Permit: (Appeal) Location of a daycare/preschool in an R-S-20 Zone
(Faith Assembly Imagination Studios) (MF#SP09-008):
To set 7:00 p.m., February 1, 2010 as the time and date for a Closed Record Hearing to
consider the appeal of the Planning Commission recommendation under Master File No.
SP09-008.
MOTION: Mr. Watkins moved to approve the Consent Agenda as read. Mr. Garrison
seconded. Motion carried by unanimous Roll Call vote.
1 3(a).1
MINUTES
REGULAR MEETING PASCO CITY COUNCIL JANUARY 4, 2010
REPORTS FROM COMMITTEES AND/OR OFFICERS:
Mayor Olson attended the New Year's Tri-Cities 2010 Appreciation Night on December
30th.
Mr. Larsen reported on the Emergency Medical Services Board Meeting.
Mr. Yenney attended the New Year's Tri-Cities 2010 Appreciation Night on December
30'h.
ORDINANCES AND RESOLUTIONS NOT RELATING TO PUBLIC HEARINGS:
Resolution No. 3211, a Resolution approving a Preliminary Plat for Linda Lovilsa
Division 2.
MOTION: Mr. Watkins moved to approve Resolution No, 3211, approving the
Preliminary Plat for Linda Loviisa Division 2. Mr. Garrison seconded. Motion carried
unanimously.
MISCELLANEOUS DISCUSSION:
Mr. Yonney noted Community Forums will be held January 12, 20 and 26 and a Business
Forum February 3.
Mayor Olson appointed Messrs. Watkins and Garrison to serve on a committee to review
consultant recommendations for upgrading the city's emergency communication system.
ADJOURNMENT:
There being no further business, the meeting was adjourned at 7:17 p.m.
APPROVED: ATTEST:
Joyce Olson, Mayor Debra L. Clark, City Clerk
PASSED and APPROVED this 19'h day of January, 2009.
2
CITY OF PASO
Council Meeting of:
January 19,2010
Accounts Payable Approved
The City Council
City of Pasco, Franklin County, Washington
We,the u igned,do hereby certify under penalty of perjury that the materials have been furnished,the
$ervices end ed or t or rformed.as described herein and that the claim is a just,due and unpaid
obligatio ag insl t city and th t we are authorized to authenticate and certify to said claim.
X�'Gary Cr chfield, Cil retchen E.Conn r, In rim Finance Manager
We,the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington,
do hereby certify that the merchandise or services hereinafter specified have been received;that Wire Transfer
No 5385 in the amount of$26,113.23, has been authorized; that Check No's 175044 through 175208 are
approved for payment in the amount of$1,120,826.27,for a combined dotal of$1,146,939.50 on this
19th day of January,2010,
Councilmember Councilmember
SUMMARY OF CLAIMIESIWIRE TRANSFERS BY FUND:
GENERAL FUND:
Legislative 629.18
Judicial 19,007.24
Executive 1,118.95
Police 23,732.58
Fire --- 20,377.47
Administration&Community Services 36,489.38
Community Development 404.92
Engineering 650.13
Non-Departmental 169,537.45
Library 2,368.19
TOTAL GENERAL FUND: 274,315.49
STREET 15,283.24
C. D. BLOCK GRANT 2119
KING COMMUNITY CENTER 4,034.47
AMBULANCE SERVICE 9,538.60
CEMETERY 34.48
ATHLETIC PROGRAMS 2,771.80
SENIOR CENTER 5,389.65
MULTI MODAL FACILITY 2,591.76
RIVERSHORE TRAIL&MARINA MAIN 0.00
LITTER CONTROL 0.00
REVOLVING ABATEMENT 70.00
PARKS FUND 0.00
TRAC DEVEL&OPERATING 0.00
STADIUM/CONVENTION CENTER 0.00
SPECIAL ASSESSMNT LODGING 96,595.69
GENERAL CONSTRUCTION 1,785.25
WATER/SEWER 746,031.12
EQUIPMENT RENTAL-OPERATING 14,919.37
EQUIPMENT RENTAL-REPLACEMENT 0.00
MEDICAL/DENTAL INSURANCE 26,113.23
CENTRAL STORES 526.41
PUBLIC FACILITIES DIST _ 23,910.99
PAYROLL CLEARING 0_00
LID CONSTRUCTION 119.09
TRI CITY ANIMAL CONTROL 3,887-57
GRAND TOTAL ALL FUNDS: $ _1,146 39.50
2009 EXPENSES
CITY OF PASCO
Council Meeting of:
January 19,2010
Accounts Payable Approved
The City Council
City of Pasco, Franklin County, Washington
We,the un signed,do hereby certify under penalty of perjury that the materials have been furnished,the
services r eyed or pwtsoor performed as described herein and that the claim is a just, due and unpaid
obligation ainst t city a d that we are authorized to authenticate and certify to said claim.
Gary utc eld, a ger retchen E.Co ner, interim Finance Manager
We,the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County,Washington,
do hereby certify that the merchandise or services hereinafter specified have been received;that Wire Transfer
No 5391 in the amount of$41,632.42, has been authorized;that Check No's 175209 through 175258 are
approved for payment in the amount of$578,317.31,for a combined total of$619,949-73,on this
19th day of January,2010,
Councilmember Councilmember
SUMMARY OF CLAIMSIWIRE TRANSFERS BY FUND:
GE=Nr=AL FUND:
Legislative 35.00
Judicial 1,090.50
Executive 39.03
Police 37,173.36
Fire 34.65
Administration&Community Services ^ , 5,283.17
Community Development 63.07
Engineering $3.07
Non-Departmental 172,869.96
Library 16.00
TOTAL GENERAL FUND: 216,667.81
STREET 35,891.84
C. D. BLOCK GRANT - - - 6.01
KING COMMUNITY CENTER 1,806.01
AM$U1a4NCE SERVICE 9,580.40
CEMETERY 2,100.01
ATHLETIC PROGRAMS 2,392-00
SENIOR CENTER 5,256.02
MULTI MODAL FACILITY 1,196.00
RIVERSHORE TRAIL&MARINA MAIN 1,794.00
LITTER CONTROL 0•00
REVOLVING ABATEMENT 1,856.00
PARKS FUND 0.00
TRAC DEVEL&OPERATING 0.00
STADIUM/CONVENTION CENTER 2,392.00
SPECIAL ASSESSMNT LODGING � 0.00
GENERAL CONSTRUCTION 0.00
WATER/SEWER 229 773.51
EQUIPMENT RENTAL-OPERATING 26,777.60
EQUIPMENT RENTAL- REPLACEMENT 0.00
MEDICAUDENTAL INSURANCE 41,632.42
CENTRAL STORES 0.00
PUBLIC FACILITIES DIST 0.00
PAYROLL CLEARING 40,828.10
LID CONSTRUCTION 0.00
TRI CITY ANIMAL CONTROL 0.00
GRAND TOTAL ALL FUNDS: $ 619,949.73
2010 EXPENSES
3(b).2
AGENDA REPOWf
FOR: City Council DATE: January 13,2010
TO: Gary Crutchf anager REGULAR: January 19,2010
Rick Terway, mim rative&Commu ity Se ices Director
FROM: Gretchen I,, Conner, Interim Finance Ma
SUBJECT: SA /CO LECTI
I. REFERENCE{ ;
Write-off and collection lists are on file in the Finance Department.
11. ACTION REQUF,5jQ2QE CQLjQL/STAFF RECOMMENDATIONS.
MOTION: I move to approve bad debt writs:-offs for utility billing, ambulance, cemetery, general
accounts, miscellaneous accounts, and Municipal Court (non-criminal, criminal, and
parking) accounts receivable in the total amount of $248,060.91 and, of that amount,
authorize$1 75,605.52 be turned over for collection.
Ill. HISTQRI LAND_J~ACTS BRIEF:
I. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-offs are under
$10 with no current forwarding address,or are accounts in "occupant"status. Accounts submitted for
collection exceed$10.00.
2. AMBULANCE -These are all delinquent accounts over 90 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed $10.00. Direct write oirs
including DSHS and Medicare customers; the law requires that the City accept assignment in these
cases.
3. COURT ACCOUNTS RECEIVABLE-These are all delinquent non-criminal and criminal fines,and
parking violations over 30 days past due.
4. CODE ENFORCEMENT — LIENS — These are Code Enforcement violation penalties which are
either un-collectable or have been assigned for collections because the property owner has not
complied or paid the fine. There are still liens in place on these amounts which will continue to be in
effect until the property is brought into compliance and the debt associated with these liens are paid.
5. CEMETERY—These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed$10.00.
6. .Si1�LVERAL- These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address, Those submitted for collection exceed$10.00.
7. &KELLANEOUS- These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. 'Those submitted for collection exceed$10.00.
Amount
Direct Referred to Total
Write-offs Collection Write-offs
Utility Billing $ .00 3,959.19 3,959,19
Ambulance $ 72,455.39 18,312.33 90,767.72
Court A/R. $ .00 147,619.00 147,619.00
Liens $ .00 4,962.00 4,962.00
Cemetery $ .00 .00 .00
General $ .00 753.00 753.00
Miscellaneous $ .00 .00 .00
TOTAL: $ 72,455.39 175,605.52 248,060.91
IV. ADMINISTRATLV_F,R.OUTING:
cc: Dot French, Municipal Court Clerk
3(b).3
AGENDA REPORT
TO: City Council January 6, 2010
FROM: Gary Crutch ty Manager Workshop Mtg.: 1111110
SUBJECT: Federal Legisl ive Consulting Agreement
I. REFERENCE(S):
1. Proposed Agreement
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
1/11: Discussion
1119: MOTION: I move to approve the agreement with Gordon Thomas Honeywell
Governmental Atlairs for federal legislative consultant services and,
further, authorize the City Manager to sign the agreement.
III. FISCAL IMPACT:
$60,000 annually
IV. HISTORY AND FACTS BRIEF:
A) The city has contracted with the consulting firm of Gordon Thomas Honeywell
(GTH) for legislative assistance at the state level for several years. In early 2009,
the city entered into a separate agreement with the Washington DC division of
GTH to provide for legislative consulting services specifically geared to federal
funding for the Lewis Street Overpass project.
B) The initial agreement with the Washington DC office has expired and a new
agreement is needed to sustain the consulting effort on the city's behalf in
Washington DC.
V. DISCUSSION:
A) The proposed agreement is identical to the 2009 agreement, except for the dates.
The scope of work, as identified in the attachment to the agreement, still focuses
on funding for construction of the Lewis Sheet Overpass project.
B) The expense of the contract remains at $5,000 monthly ($60,000 annually), The
assistance of the consultant was beneficial in 2009 through Representative
Hastings' effort to obtain a $750,000 allocation for the project in the 2010 federal
budget (will be received by the city this year) and working with other legislative
offices to assure the best opportunity to have Pasco's project included in the new
highway funding bill expected sometime within the next 18 months.
C) In view of the substantial financial benefit for this particular project, staff
recommends the agreement continue for another year.
3(c)
CONSULTING AGREEMENT
GORDON THOMAS HONEYWELL & CITY OF PASCO
This Agreement is entered into by and between City of Pasco and any other party hereto, as is
identified in the consultant's signature block below (hereinafter referred to as "Consultant"),
upon the following terms and conditions:
A. Scope of Work. Consultant will advise and assist the City of Pasco in accordance with
Consultant's Scope of Work, described in Attachment "A" hereto and incorporated herein,
and Consultant will do and produce such other things as are set forth in the Scope of Work
(the "Services"). Consultant's Services will be in compliance with applicable laws,
regulations, rules, orders, licenses and permits, now or hereinafter in effect, and Consultant
shall furnish such documents as may be required to effect or evidence such compliance.
B. Compensation; Expenses. The City of Pasco will pay Consultant for satisfactorily
rendered Services in accordance with the specific terms set forth in Attachment"A."
C. Invoices; Payment. Consultant will furnish the City of Pasco invoices at regular intervals,
as set forth in Attachment"A."
D. Term. Consultant shall promptly begin the Services hereunder on the date set forth in
Attachment "A" and shall terminate same on the date set forth in Attachment "A." The
City or Consultant may terminate Consultant services for convenience at any time prior to
the termination date set forth in Attachment "A," provided that the terminating party
provides 30-days written notice to the other party.
E. Ownership of Work Product. The product of all work performed under this agreement,
including reports, and other related materials shall be the property of the City of Pasco or
its nominees, and the City of Pasco or its nominees shall have the sole right to use, sell,
license, publish or otherwise disseminate or transfer rights in such work product.
G. Independent Contractor. Consultant is an independent contractor and nothing contained
herein shall be deemed to make Consultant an employee of the City of Pasco, or to
empower Consultant to bind or obligate the City of Pasco in any way. Consultant is solely
responsible for paying all of Consultant's own tax obligations, as well as those due for any
employee/subcontractor permitted to work for Consultant hereunder.
H. Release of Claims; Indemnity. Consultant hereby releases, and shall defend, indemnify
and hold harmless the City of Pasco from and against all claims, liabilities, damages and
costs arising directly or indirectly out of, or related to, Consultant's fault, negligence, strict
liability or produce liability of Consultant, and/or that of any permitted employee or
subcontract or Consultant, pertaining to the Services hereunder.
I. Assignment. Consultant's rights and obligations hereunder shall not be assigned or
transferred without the City of Pasco's prior written consent; subject thereto, this
Agreement shall be binding upon and inure to the benefit of the parties' heirs and
successors.
J. Governing Law; Severability. This Agreement shall be governed by the laws of the State
of Washington, U.S.A. (excluding conflict of laws provisions). if any term or provision of
this Agreement is determined to be legally invalid or unenforceable by a court with lawful
jurisdiction hereover (excluding arbitrators), such term or provision shall not affect the
validity or enforceability of any remaining terms or provisions of this Agreement, and the
court shall, so far as possible, construe the invalid portion to implement the original intent
thereof.
K. Arbitration. Any dispute between the parties related to or arising out of the subject matter
of this Agreement shall be resolved exclusively through binding arbitration under the
Commercial Arbitration Rules of the American Arbitration Association in Washington
State.
L. Entire Agreement; Etc. This Agreement, and its incorporated attachments hereto, state the
entire agreement between the parties regarding the subject matter hereof and supersede any
prior agreements or understandings pertaining thereto. Any modification to this Agreement
must be made in writing and signed by authorized representatives of both parties. Any
provision hereof which may be reasonably deemed to survive the expiration or termination
of this Agreement shall so survive, and remain in continuing effect. No delay or failure in
exercising any right hereunder shall be deemed to constitute a waiver of any right granted
hereunder or at law by either party.
CONSULTANT: CITY OF PASCO
Gordon Thomas Honeywell
Governmental Affairs
Sign: Sign:
Print: Dale Learn Print: Gary Crutchfield
Title: Title: City Manager
Date: mate:
Consulting Agreement for Federal Grants re: Uwis Street Overpass
Gordon Thomas Honeywell& City of Pasco
Page 2 of 3
ATTACHMENT "A"TO
CONSULTING AGREEMENT
GORDON THOMAS HONEYWELL & CITY OF PASCO
A. Scope of Work: Consultant shall provide the City of Pasco with the following federal
governmental affair services:
• Identify and track all federal grants that are available to the City of Pasco for funding
the Lewis Street Overpass.
• Lobby the Washington State Congressional delegation and others as necessary to
pursue a congressionally directed transportation funding request in the FY2011
Congressional Budget and/or in the anticipated highway reauthorization bill for a
road project related to the Lewis Street Overpass.
• Lobby the Washington State Congressional delegation and others as necessary to
assure inclusion within the Highway Reauthorization Bill authorization and funding
for a "bridge replacement program" or similar funding program for which the Lewis
Street Overpass Project would qualify.
• Organize meetings for City of Pasco officials, local community leaders and business
leaders to support the congressional transportation request.
• Provide the City of Pasco with periodic reports and updates on effort, status and
progress.
8. Compensation/Expenses: The City of Pasco shall pay Consultant a monthly fee of$5,000
for the services listed above. Consultant shall only bill communication expenses. The
expenses shall not exceed $2,500 for the term of the contract.
C. Invoices/Payments: (a) Consultant shall furnish the City of Pasco with invoices for
services performed on a monthly basis, and (b) the City of Pasco shall pay each of
Consultant's invoices within thirty (30) days after the City's receipt and verification of
invoice.
D. Term of Agreement: Consultant's services shall commence on January 1, 2010 and shall
terminate on December 31, 2010.
Consulting Agreement for Federal Grants re: Lewis Street Overpass
Gordon Thomas Honeywell&City of Pasco
Page 3 of 3
AGENDA REPORT
TO; City Council January 14, 2010
FROM; Gary Crutch 1 y Manager Regular Mtg.: 1/19/10
SUBJECT; City Council resentation on Boards and Committees
1. REFERENCE(S):
1. Resolution
2. Proposed list of Board and Committee Assignments for 2010-2011
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
I/19 MOTION: l move to approve Resolution No. , confirming Mayoral
appointments to various Boards and Committees.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A) City Council representation is required on a number of municipal and regional
boards and committees. The practice of the City Council has been to make
Council appointments to the various boards and committees on a biennial basis;
thus, appointments generally are for a two-year period. Changes to these
appointments, if necessary, can be made at any time by action of the Mayor and
City Council.
8(a)
RESOLU'T'ION NO.
A RESOLUTION confirming Mayoral appointments of Councilmembers
to various Boards and Committees.
WHEREAS, various boards and committees, serving both regional and local purposes,
require representation by the Pasco City Council; and
WHEREAS, PMC 2.06.020 reserves authority to the Mayor for appointment of members
to advisory committees subject to confirmation of the City Council; and
WHEREAS, Mayor Olson, after consultation with Councilmembers, has declared
appointments to the respective boards and committees reflected in the list attached hereto; NOW
THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO
RESOLVE AS FOLLOWS:
Section X: The Pasco City Council hereby confirms the appointments to the respective
boards and committees reflected in the list attached hereto, until otherwise modified by action of
the Mayor and City Council.
Passed by the City Council of the City of Pasco this 19th day of January 2010.
Joyce Olson, Mayor
ATTEST: APPROVED AS TO FORM:
Debra L. Clark,City Clerk Leland B. Kerr,City Attorney
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AGENDA REPORT
TO; City Council January 6, 2010
)~ROM: Gary Crutchf ty Manager Workshop Mtg.. 1/I I/10
Business Mtg.: 1/)9/10
SUBJECT: Potential Land Exchange with DNR
I. REFERENCE(S):
1. Vicinity Map,
2. Letter to City Manager from DNR dated 11/30/09
3. Proposed Agreement (Letter of intent)
II. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS:
1111: Discussion
1119: MOTION: 1 move to approve the letter of intent with the Washington State
Department of Natural Resources and, further, authorize the Mayor
to sign the agreement.
III. FISCAL IMPACT:
Between $10,000 and $20,000 for appraisals/administrative costs
IV. HISTORY AND FACTS BRIEF;
A) The State Department of Natural Resources (DNR) has owned about 300 acres in
west Pasco, bounded by roads 72 and 84 and I-182 and Argent Road since
statehood. The Pasco School District about 10 years ago acquired 80 acres from
DNR, which is now the site of the new Chiawana High School. Most of the
remaining 200 acres continues to be farmed under a lease by DNR to a local farm
operator.
B) As publicly-owned property, the parcel is not on the tax rolls and does not
generate local tax revenue to local agencies (city, school, county, port, etc.). Due
to the extraordinary growth over the past decade along the 1-182 corridor, the
DNR site is now virtually surrounded by urban development and is functionally
convenient to the 1-182/Road 68 interchange. Most urban development projects
require land ownership for financing purposes, but DNR's practice/preference is
to lease its land so as to provide annual income for the state's school trust fund;
hence, urban development of the 200 acres is highly unlikely unless a party is
willing and capable of exchanging a different parcel of equal value and of
comparable ease for leasing purposes.
C) The city owns 14 farm circles in support of its Process Water Reuse Facility
(PWRF), lying east of SR395 in the vicinity of Foster Wells Road. All 14 circles
are under lease for farming purposes and produce annual income accordingly.
Those farm circles present a viable opportunity for the city to exchange income
producing land of comparable value for the DNR circles lying west of Road fib.
D) Staff has discussed the potential exchange concept with DNR representatives over
the past year. DNR has tentatively agreed to an exchange process, which could
result in the city's receipt of the Road 68 properties in exchange for a comparable
value of the city's farm circles and possibly sell the remaining city farm circles to
DNR for current appraised value. The exchange process required for DNB's
involvement is reflected in the proposed agreement(letter of intent).
10(a)
V. DISCUSSION.
A) After considerable discussion between DNR and city staff, it is believed that the
potential exchange has considerable merit for both parties and the concept should
be pursued. A potential for the city to acquire and transfer the DNR site for urban
development will foster appropriate urban development much sooner than
otherwise would occur and utilize existing public infrastructure rather than extend
more to outlying areas. And the sooner the DNR property develops, the sooner
the community's tax base is benefitted.
B) The only significant issue (other than comparable values) is the ability to use the
existing city farm circles in support of the PWRF, To that end, DNR is
committed to a long-term lease of the circles to the city for that purpose and is
aware of the PWRF operation. Those details would be a critical element of any
final exchange package, if one is to be approved,
C) Given the potential benefit and modest cost of the exchange analysis and process,
staff recommends approval of the letter of intent,
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WASHINGTON STATE DEPARTMENT OF Caring for
Natural Resources your natural resources
Mer Goldmark•Commissioner of Public Lands now and forever
November 30, 2009 Y -
City of Pasco "ASCO CITY MALL
Attn: Gary Crutchfield, City Manager !'
P.O. Box 293
Pasco, WA 99301 DEC Q 1 200
Dear Mr. Crutchfield: ;,f Y MAINIAGEA'S
;7�FIC.E
Please regard this letter as our expression of interest in pursuing the acquisition of farm property
owned by the City of Pasco (City) in the vicinity of Foster Wells Road and US 395. In
exchange, the Washington Department of Natural Resources(DNR) would offer portions of our
ownership South of 1-182 and West of Road fib,plus additional funds to balance exchange
values.
We envision this trade as a potential benefit to both parties. The City may have a desire to
"steer" development,and be in a better position to capture the full value of the DNR property
from commercial and residential uses and resulting tax benefits. Conversely, DNR is better
suited to manage natural resource property with long-terra sustainability, outside of the urban
interface.
DNR understands the City's ongoing and long-term commitments to apply agricultural waste
water on their lands through a"State Waste Discharge Permit". As a condition of exchange
DNR would be willing to lease these properties back to the City through a long-term lease
agreement with subleases to farmers.
DNR has a long and continuing history in the farming community. At statehood, DNR was
granted Sections 16 and 36 in each Township from the Federal Government for the financial
support of schools, universities, and other public trusts. Today, DNR manages more than 5,6
million acres of state-owned forest, agricultural, range, commercial,aquatic,and conservation
lands. Our Southeast Region manages over 30,000 irrigated acres, under more than 115 leases,
We look forward to working with the City as a long-term partner as we pursue this exchange
opportunity.
Sincerely,
i
ary erndt
Acting Southeast Region Manager
Department of Natural Resources
SOUTHEAST REGION 1 713 BOWERS RD 1 ELLENSBURG,WA 98926-9301
TEL(509)925-$510 1 FAX(50S)925-8522 1 TTY(360)902.1125 1 TR5 711 1 W W W.DNK,WA.GOY
. p.+ FN im nPPnRTI INITY FMP i}I OYF /
WASHINGTON DEPARTMENT OF NATURAL RESOURCES
and
CITY OF PASCO
LETTER OF INTENT
for
EXCHANGE OF REAL ESTATE
1.0 Introduction.
This Letter of Intent"L01" is an expression of the good faith intent of both parties and is not
intended to be legally binding on either party, Neither this document nor anything contained
herein shall be construed as an actual agreement or contract. Neither party is required to go
forward with the proposal until a binding agreement is executed.
City of Pasco, herein referred to as "Exchanger", holds and controls certain irrigated farm land in
Franklin County which is desirable for state trust ownership. Lands under consideration for
exchange or for exchange and purchase are described in Exhibit A and will be referred to in this
document as "Exchange Lands".
The State Department of Natural Resources, herein referred to as"State", owns and manages
trust lands throughout Washington State that are isolated, scattered and otherwise less desirable
for long term trust ownership, including certain property considered suitable for ownership by
Exchanger. Such lands are shown in Exhibit B and will be referred to in this document as"State
Lands".
State proposes to exchange State Lands to Exchanger for property of equal value, and offers to
purchase additional property from Exchanger. The entire transaction is herein referred to as a
land exchange but is recognized to contain a purchase component if such is mutually desirable to
both parties.
This LOI outlines the anticipated duties, obligations and expectations of Exchanger and State
while moving forward and anticipating a future formalized exchange agreement. The intent of
this document is to provide guidance, direction and a framework for formal representations that
may be included in subsequent binding exchange agreement.
2.0 Exchange Properties.
2.1 Exchange Lands.
Exchange Lands are identified in Exhibit A. Exchanger and State will determine by
mutual agreement which properties will be included in the exchange or exchange-
purchase.
Pasco Farms Exchange, LOI 1 1/6/2010
2.2 State Lends.
State Lands are identified in Exhibit B. State and Exchanger will determine by mutual
agreement whether all or portions of the property will be included in the exchange.
3.0 Deeds,
3.1 Exchange Lands shall be conveyed by Statutory Warranty Deed.
3.2 State Lands shall be conveyed by Quitclaim Deed signed by the Governor. State's
deed may include reservation of minerals as set forth in RCW 79.11.210. Should
Exchanger have mineral rights comparable in quality to State's mineral rights, an
exchange of mineral rights can be considered.
4.0 Tale Insurance.
4.1 Exchange Lands:
Exchanger shall provide a preliminary commitment for title insurance to State covering
Exchange Lands within 60 days of execution of this LOi. Exchanger will provide a final
title commitment at closing of the exchange. Title insurance will be for the amount of
State's indicated values (appraised value accepted by State). Exchanger shall be
responsible for any fees associated with obtaining the preliminary title commitment and
final title insurance. The preliminary title commitment shall cover all Exhibit A
properties and include paper or electronic copies of all encumbrance documents, copies
of all deeds for subject properties going back for at least 20 years, and legal descriptions
provided in electronic format if possible.
4.2 State Lands:
State shall provide a title abstract from the State Title and Records Office for State Lands
within 60 days of execution of this L01. Exchanger shall have the option of obtaining a
preliminary commitment for title insurance to the State Lands. State will not provide or
pay for a preliminary or final commitment for title insurance or title insurance for State
Lands.
5.0 Encumbrances.
Exchanger and State shall provide encumbrance documents on respective ownerships as
available whether recorded or unrecorded or whether the encumbrances are listed on any
preliminary commitment for title insurance.
Exchanger desires to retain a leasehold interest in the Exchange Lands. State and Exchanger will
explore mutually acceptable leasing language for all or a portion of the Exhibit A property.
Pasco Farms Exchange, LOI 2 1/6/2010
Exchanger and State shall each be responsible for identifying and notifying the other party of
unacceptable encumbrances or conditions to the title on properties being acquired as mentioned
in Section 4.0.
6.0 Property Information.
Both parties will provide property information that may be of use to a property appraiser or
landowner, such as: surveys, crop reports, water rights, aerial photo images, leases, irrigation
system information, improvements, known hazardous materials.
7.0 Appraisal and Appraisal Review.
In the interest of facilitating the exchange Exchanger agrees to pay half the cost of completing an
appraisal for all properties included in the proposal, Exchanger may enter into a separate contract
with the appraiser to pay half the fee, or Exchanger may provide funds to State prior to appraiser
beginning work on the appraisal. In the event the exchange is not completed, neither party will
be obligated to reimburse the other for appraisal costs.
In order for State to maintain fiduciary responsibility to trust beneficiaries, State must ensure all
appraisal work is impartial, objective, and meets prescribed standards. To achieve this objective,
Exchanger and State agree to implement the following appraisal procedure:
Unless otherwise agreed in writing, all properties included in the exchange proposal shall be
appraised to USPAP standards by a licensed land appraiser to conclude a value that supports the
appraiser's highest and best use determination. State shall control the appraisal process by
selecting and contracting with an appraisal firm that is acceptable to both parties and is on the
State's list of personal service contractors for appraisals. Exchanger and State will be named as
co-clients. Exchanger and State shall each receive one or more copies of the completed
appraisal. Exchanger will review the draft appraisal bid solicitation letter and instructions prior
to State sending to appraisal firm(s). State will contact Exchanger to discuss appraisal bids in
advance of the State engagement of appraisal contractors.
Exchanger and State will have an opportunity to review the appraisal and jointly submit, through
State, comments and concerns to the appraiser for clarification/correction of content and/or
conclusions. The final product when accepted by Exchanger and State will be used as a basis for
negotiation of exchange equity.
8.0 Exchange Equity.
State shall establish exchange and acquisition equity based on internal review and acceptance of
appraised values. State and Exchanger will propose parcel configurations until each party is
satisfied that equitable balance is achieved. State exchange law (RCW 79.17.010) provides that
the exchange be of equal value, Additionally. State is authorized-to purchase additional property
from Exchanger at market value.
Pasco Farms Exchange, LOI 3 1/6/2010
9.0 Administrative Costs.
State desires to obtain cash from Exchanger to cover State's administrative costs of this
transaction, as provided for in RCW 79.17.010. Statute allows State to collect up to 5%of the
value of the State land from the Exchanger and to convey property of equal value as
compensation. Example: if Exchanger pays $100,000 in exchange costs, Exchanger will receive
$100,000 in land as part of the exchange.
An initial payment of$10,000 for staff time and incidental costs is required in order for the State
to begin work on the exchange. Upon completion of the exchange, this amount plus the portion
of the appraisal fee paid by Exchanger will be credited to Exchanger, and the remaining costs
will be collected at closing. If the exchange is not completed, the unspent portion of the$10,000
deposit will be refunded to Exchanger. if$10,000 or more has been expended at the time the
exchange terminates, no refunds will be given.
The total cost of this exchange is estimated to be$100,000. At the time the exchange agreement
is finalized, the actual amount will be determined and memorialized in the agreement. For
information purposes, it is common for exchanges to cost between one hundred and two hundred
fifty thousand dollars, depending on complexity. Exchanger understands and agrees to provide
cash at closing.in exchange for equivalent value property.
10.0 Exchange Agreement.
A binding Exchange Agreement is anticipated to be executed by both parties once exchange
equity is achieved. The Exchange Agreement will be in a form substantially as provided by
State and shall include standard clauses that identify the terms and conditions of the exchange as
mutually agreed upon by the parties. The document shall be executed prior to Board review.
11.0 Board Review.
All transactions are subject to Board of Natural Resources review and approval as provided by
RCW 43.30.215, The Board is an independent body with full authority over State land
transaction proposals. Additionally, the Board acts, by law, as the Board of Appraisers and
establishes values for all state trust land leaving State ownership. State shall retain responsibility
to present and seek Board approval of the proposed transactions. Exchanger will be notified of
Board presentation meetings,but will not be required to participate.
12.0 Taxes and Assessments.
12.1 Exchanger shall be responsible: for payment of all taxes and assessments on
Exchange Lands prorated to time of closing.
12.2 State shall be responsible for payment of all taxes and assessments on State Lands
prorated to time of closing. Land in State ownership is exempt from property tax
assessment.
Pasco Farms Exchange, L01 4 1/6/2010
12.3 Exchanger shall pay any excise tax due the counties at time of closing.
12.4 Exchange Lands held in Open Space or Forest Land tax designations under RCW
84.33 and 84.34 may be subject to compensating tax upon sale or exchange to a
tax exempt agency. Compensating tax exemptions that may apply are identified
in RCW 84.33.140(13)(a) and RCW 84.34.108(6)(a). Should exemptions not
apply, and compensating tax become due, the amount of the exchange equity will
be adjusted in proportion to the tax obligation within limits acceptable to State,
and Exchanger shall be responsible for payment of the tax at closing.
13.0 Public Outreach and Hearing.
State law requires public hearings be held as provided by RCW 79,17.050 before exchanging any
state land. State shall be responsible for establishing and conducting such hearings. In addition,
State may hold one or more informational public meetings to respond to questions and gain
public input. Exchanger will be notified of all meetings and hearings. Exchanger agrees to
provide at least one representative for all informal public meetings (if any) and for one hearing.
Exchanger shall also provide State with a contact address, contact person, and phone number that
the State can provide to the public or media should they have questions of the Exchanger.
14.0 Miscellaneous.
14.1 Exchanger and State agree to segregate Lands on final Exhibits A and B and
avoid management activities such as land sales, new leases and easements
("management activities"), and abstain from undertaking activities resulting in an
encumbrance of the property or affecting the condition of the property unless
advance notification is provided to the other party. If in the opinion of the party
seeking to acquire the lands, it is determined that the new management activities
affect the value or condition of the property, such land may be removed from the
exchange at the option of the party acquiring the lands. Upon execution of the
Exchange Agreement, further management activities or activities that may affect
the value or condition of the property shall not be undertaken unless the party
owning said lands obtains prior written consent from the acquiring party of said
lands.
14.2 Exchanger and State agree to continue to manage respective ownerships to protect
the lands from losses such as fire and theft and to maintain compliance with all
applicable laws,
14.3 State is not represented by any real estate agent(s) as part of this proposed
transaction. State;shall not be responsible to pay any fees to any realty agent or
broker associated with the proposed transaction.
14.4 Any and all documents in State's possession may be subject to public disclosure
under the Public Disclosure Act (RCW 42.17). Documents such as legal
correspondence and appraisals may be exempt as provided in RCW 42.17.310.
Pasco Farms Exchange, LQI S 1/6/2010
14.5 Each party shall have an opportunity to conduct due diligence on the property to
be acquired and shall have a right to inspect such properties to determine the
environmental condition of the property and determine whether the property is
suitable for its intended use.
14.6 The parties shall negotiate mutually agreed upon representations and warranties to
be included in the Exchange Agreement regarding the condition of the properties
to be included in the exchange.
15.0 Notices.
15.1 Exchanger Notice.
Gary Crutchfield, City Manager
525 N Third Ave
PO Box 293
Pasco, WA 99301
509-545-3404
Fax: 509-545-3403
15.2 State Notice.
Julie Armbruster, Project Manager
I 111 Washington St SE
PO Box 47014
Olympia, WA 98504-7014
360-902-1636
Fax: 360-902-1789
With Copy to:
Jeanne Williams, Region Transactions Coordinator
713 Bowers Road
Ellensburg, WA 98926-9301
(509) 925-0908
Pasco Farms Exchange, LOI 6 1/6/2010
16.0 Process Time Line.
The following dates are suggested targets and not firm commitments.
2010
February Finalize and sign Letter of Intent
May State solicits appraisal requests and engages appraisal contractors.
September Appraiser completes appraisals of properties.
September Public hearing completed and comments reviewed,
October Appraisal review completed. Values accepted.
December Exchange Agreement reached and executed.
2011
February Board of Natural Resources presentation and decision and City decisions
obtained,
April Closing of exchange/purchase.
17.0 Signatures.
Neither this document nor anything contained herein shall be construed as an actual agreement or.
contract, This Letter Of Intent is not intended to have legally binding effect, but is an expression
of the good faith intentions of both parties.
CITY OF PASCO STATE OF WASHINGTON
"EXCHANGER" DEPARTMENT OF NATURAL
RESOURCES
"STATE"
By: By:
Title: Title:
Date: Date:
Pasco Farms Exchange, L01 7 1/6/2010
WASHINGTON DEPARTMENT OF NATURAL RESOURCES
and
CITY OF PASCO
LETTER OF INTENT
EXHIBIT A
EXCHANGE LANDS
Parcel # A.vprox. A_ereage SubSection - Section,Township, RanM
All or part of the following sections, to be further defined and described prior to contracting an
appraisal:
Sections 2, 3, 11 and 12 of Township 9 North, Range 30 East, W. M., and
Section 34 of Township 10 North, Range 30 East, W, M,, all in Franklin County.
Pasco Farms Exchange, L01 8 1/6/2010
WASHINGTON DEPARTMENT OF NATURAL RESOURCES
and
CITY OF PASCO
LETTER OF INTENT
EXHIBIT B
STATE LANDS
Parcel # Approx. Acreage SubSection - Section Township, Range
Portions of Section 16, Township 9 North, Range 29 East, W, M., Franklin County, to be further
defined and described prior to contracting an appraisal.
Pasco Farms Exchange, LOI 9 1/6/2010