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HomeMy WebLinkAbout2010.04.26 Council Workshop Packet AGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 p.m. April 26,2010 1. CALI,TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. 1TFMS FOR DISCUSSION: (a) Staff Presentation: Facilities. (NO WRITTEN MATERIAL ON AGENDA) Presented by Dan Dotta,Facilities Services Manager. (b) Parks & Recreation Advisory Council Interviews: 1. Agenda Report from Gary Crutchfield,City Manager dated April 22, 2010. 2. Applications(3) (Council packets only). (c) Franklin County Integrated Solid Waste Management Plan 2010: 1. Agenda Report from Rick White, Community & Economic Development Director dated April 20, 2010. 2. lnterlocal Agreement for establishing an Integrated Solid Waste Management Plan for Franklin County (July 2007). 3. Draft Franklin County hntegrated Solid Waste Management Plan (Council packets only; copy available for public review in the Planning office, the Pasco Library or on the city's webpage at htip:)/www.Masco-wa.govlwebadrla/cit .council pe�rts , (d) Utility Rate Adjustments: 1. Agenda Report from Stan Strebel,Deputy City Manager dated April 22, 2010, 2. Proposed Ordinance, 3, Water, Sewer Fund Analysis. (e) Signature Authority for the Neighborhood Stabilization Program (NSP): 1. Agenda Report from Angela Pitman, Block Grant Administrator dated April 20, 2010. 2. Resolution. (f) Signature Authority for the Community Housing Improvement Program (CHIP): 1. Agenda Report from Angela Pitman,Block Grant Administrator dated April 20,2010. 2. Resolution. 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT REMINDERS: L 4;00 p.m., Monday, April 26, Port of Benton — Hanford Area Economic Investment Fund Committee Meeting. (MAYOR PRO-TEM MATT WATKINS,Rep.;COUNCILMEMBER AL YENNEY, Alt.) 2. 6:00 p.m., Monday, April 26, Conference Room ##1 — Old Fire Pension Board Meeting. (COUNCILMEMBER REBECCA FRANCIK) 3. 4:00 p.m., Wednesday, April 28, 710 W. Court Street— Franklin County Affordable Housing Trust Fund Oversight Committee Meeting. (COUNCILMEMBERS REBECCA FRANCIK and MIKE GARRISON) 4. 5:30 p.m., Thursday, April 29, 710 W. Court Street — Benton-Franklin Community Action Committee Meeting. (COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK,Alt.) 5. 7:30 a.m., Friday, April 30, Richland City Council Chambers —Hanford Communities Governing Board Meeting. (COUNCILMEMBER MIKE GARRISON, Rep.; At,YENNEY,Alt.) 6. 5:00 p.m., Friday, April 30, TRAC Facility— Hispanic Academic Achiever's Program. (MAYOR PRO- TEM MATT WATKINS) 7. 11:00 a.m., Saturday, May 1, Downtown Pasco — Cinco de Mayo Parade (staging at 2nd & Columbia Streets at 9:00 a.m.). (MAYOR PRO-TEM MATT WATKINS, COUNCILMEMBERS BOB HOFFMANN and AL YENNEY) AGENDA REPORT TO: City Counci. April 22, 2010 FROM: Gary Crutch i Manager Workshop Mtg.: 4/26/10 SUBJECT: Parks and Recr ation Advisory Council Interviews I_ REFERENCE(S): 1. Applications (3) (Council packets only) 11. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 4/26: Council to conduct brief interviews with Abigail Kidd, Brigitte Miller and Daniel Patton. I11. HISTORY AND FACTS BRIEF: A) The Parks and Recreation Advisory Council is composed of seven members; terms are three years. The board meets on the 1 st Thursday of every month at 5:30 p.m. B) The Parks and Recreation Advisory Council advises the City Council on recreation activities and facilities needed in the community. C) There are three positions whose term has expired: I. :Position No. 4 (currently Duane Taber) 2. Position No. 6 (currently Michael Mathews) 3. Position No. 7 (vacant) D) The Council screening committee concluded that the incumbents in Position Nos. 4 and 6 be reappointed without interview. E) After Council Screening Committee review of all applications, the following have been selected to interview for possible appointment to Position No. 7: 1 , Abigail Kidd--------------------------------------------- ----3418 Emerald Downs Lane 2. Brigitte Miller............................................................5316 Bakerloo Lane 3. Daniel Patton..............................................................7807 Vendovi. Drive IV. DISCUSSION: A) After conduct of interviews at the April 26 Workshop meeting, it is proposed that appropriate appointments be made by the Mayor, subject to confirmation by the Council, at the May 3 meeting. 4(b) AGENDA REPORT FOR: City Council April 20, 2010 TO: Gary Crutchfi 1 Manager Workshop Mtg.: 04/26/10 FROM: Rick White, Co rnunity and Economic Development Director '0\4 SUBJECT: Franklin County Tnte t.ated Solid Waste Management Plan 2010 1. REFERENCE(S): 1. Interlocal Agreement for establishing an Integrated Solid Waste Management Plan for Franklin County(July 2007). 2. Draft Franklin County Integrated Solid Waste Management Plan (Council packets only; copy available for public review in the Planning office, the Pasco Library or on the City's webpage at bttp://www.pA.sco--�,a..Zo-,li",Atebapp/cit%,-counCilreRorts). II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 04/26: DISCUSSION: Presentation by HD'R Engineering, for Council discussion. III. FISCAL IMPACT: The fiscal impact is contingent upon the receipt of State grants over the next several years and the implementation of an interlocal agreement specifying solid waste activities and funding. There is a potential impact of approximately $87,000 from 2011 through 2015. IV. HISTORY AND FACTS BRIEF: A. Solid waste planning activities are required through State law. The 2010 Franklin County Integrated Solid Waste Management Plan (Plan) was developed in response to Washington and Oregon legislation. B. Each county, in cooperation with the cities within the county, is required to prepare a solid waste management plan. The solid waste planning effort began with an interlocal agreement between the cities of Pasco, Connell, Kahlotus and Mesa and with Franklin County. The agreement established Franklin County as the lead planning agency. C. The implementation of required activities is contingent upon distribution of financial grants through the Department of Ecology (DOE). Receipt of the grant requires a 25% local match. D. Currently, the local match is being paid through a surcharge Franklin County imposes on unincorporated Basin Disposal (BDI) accounts. The Plan proposes a formula for funding the local match based on the percentage of each jurisdiction's population to the entire County's population. The Plan also proposes that in 2010 and 2011, the County pay 50% of the required local match through the surcharge, and each city collectively pay the remaining 50% of the match in proportiou to its population (for example - Pasco at. 80%, and Connell at 5%). In 2012 and 2013 the proposed formula would repeat except the County payment would drop to 25% of the local match. In 2014 and beyond, the cities and County would pay the required local match per their proportional share of the entire County population. E. The plan has been submitted to the Department of Ecology, the Solid Waste Advisory Committee (SWAC), the county and cities and the public for review. The SWAC (including Councilmen Garrison and Larson) has recommended that the Plan be adopted. V. DISCUSSION: A. Adoption of the Plan will guide solid waste activities for the next 6 years. Implementation of any item in the Plan is dependent upon receipt of State funding (DOE grants) and the approval of an accompanying interlocal agreement. 4(c) Reference #1 466 VVMN RECORDED RETL"RN TO: INTERLOCAL AGREEMENT REGARDING ADOPTION OF SOLID WASTE MANAGEMENT PLAN FOR FRANKLIN COUNTY THIS INTERLOCAL AGREEMENT is executed by and between Franklin County ("County") and the Cities of Pasco, Connell, Mesa and Kahlotus ("Cities") (hereinafter jointly referred to as the "Parties") for the purposes of establishing an Integrated solid waste management plan for Franklin County; fulfilling the Cities and County's obligations under Chapter 70.95 RCW, and other State and Federal laws and regulations governing solid waste management; and contributing to the health and safety of all Franklin County residents. The Parties make and enter into this Interlocal Agreement("AgreemenL") effective the day of 2007, for the purposes and under the terms contained herein. WHEREA.S, the Parties recognize the need and obligation to meet Federal and State inandates for solid waste management planning; and WHEREAS, the Parties believe that the Integrated Solid Waste Martagemenz Plan ("Plan") can best be accomplished under the leadership of Franklin County in cooperation with the Cities; and WHEREAS, programs of solid waste reduction and recycling can be most effective when carried out pursuant to a coordinated Plan; and WHEREAS, the County has secured adequate grant funding to meet the financial obligations for solid waste planning as required by law, and WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapter 39.34 RCW, NOW, THEREFORE, IN CONSIDERATION of the mutual promises and covenant he-rein, it is hereby agreed. Interlocal Agreement Adoption of Solid Waste Management Plan- 1 pp s 4 6b S I. PURPOSE T ! This Agreement is entered into pursu= to Chapter 3934 RCW for the purpose of cooperative management of solid waste within Franklin County. It is the intent of the Parties to work cooperatively in developing a comprehensive solid waste management plan pursuant of Chapter 70.95 and 70.105 RCW that is viable and economically responsible to their citizens. Specifically, this Agreement will provide for the administration, planning and operations of the adopted Franklin County Comprehensive Solid Waste Management Program. It. DEFINITIONS For the purpose of this Agreement and any related agreement, contracts and documents executed, adopted, or approved to this Agreement, the parties shall use the definitions found in RCW 70.95.030, RCW 70.138.020, WAC 173-304-100 and WAC 173-350-100, tinless the context indicates otherwise. III. RESPONSWILY11LS OF FRANKLIN COUNTY The responsibilities of Franklin County shall be. A. Prepare and submit for approval on behalf of the Cities and County the Integrated Solid Waste Management Plan (ISWIvfP) as provided in RCW 70.95.080 and related provision E of law. Such Plan as finally prepared, amended or modified shall be binding upon the Parties in its solid waste management. B. Implement, in cooperation with the Cities, waste reduction and recycling programs within such Cities, as well as in uninwrporated areas, all as enumerated in the Plan. Where appropriate and agreed, the County may provide funding to the Cities to implement such waste reduction and recycling programs. IV. RESPONSIBILITIES OF CITIES The responsibilities of the Cities shall be: A. Cooperatively help prepare the Integrated Solid Waste Management Plan (ISWM-P) for Franklin County by participating in the Franklin County Solid Waste Advisory Committee (FCS WAC). 8. Review draft plan and respond for your city with comments to be adopted into the Plan prior to formal FCSWAC recommendations. i C. Any recommendation in the Plan, which would result in a cost to any governmental entity shall be pre-approved by the local government before presentation to the County Commission for adoption into the Plan. Interlocal Agreement Adoption of Solid Waste Management Plan-2 t i E p ' E D. Where appropriate and agreed, receive funding from the County to implement such waste reduction and recycling programs as outlined in the ISWIV2. t ; V. DISBURSEMENT OF ASSETS AND DEBTS _. r If this Agreement is terminated, all Parties to this Agreement shall determine the disbursement of any outstanding debts and the allocation of any assets. If the Parties cannot agree to the disbursement of any outstanding debts and the allocation of any assets,the issues are to be submitted for arbitration, pursuant to State law, RCW 7.04A. The County and the contesting jurisdiction agree that such arbitration shall he conducted before one (1) disinterested € arbitrator. i VT. DURATION This Agreement shall commence on the date set forth above and will continue in effect for six (6) years. As stipulated within RCW 70.95.110(1), each Plan shall be maintained in a current condition and reviewed and revised periodically as may be required by the W.DoE. Upon each review, such plans shall be extended to show long-range needs for solid waste handling facilities for twenty (20) years in the future, and a reviewed implementation schedule and implementation budget for six (6) years in the future. This Agreement may be earlier terminated by mutual agreement or by any party upon sixty(60)days advance written notice. { VII. INTERLOCAL COOPERATION ACT PROVISIONS 9 Each party shall be solely responsible for all costs, materials, supplies and services necessary for their performance under the terms of this Agreement. All property and materials secured by each party in the performance of this Agreement shall remain the sole property of that party. All funding incident to the fulfillment of this Interlocal Agreement, shall be borne by each party necessary for the fulfillment of their responsibilities under the terms of this Agreement. No v special budcets or funds are anticipated, nor shall be created incident to this Interlocal Cooperation Agreement. it is not the intention that a separate legal entity be established to ' conduct the cooperative undertakings, nor is the acquisition, holding, or disposing of any real or personal property anticipated under the terms of this Agreement. The Franklin County Administrator, or his designee, shall be designated as the Administrator of this Interlocal Cooperative Agreement. s A copy of this Agreement, shall be filed with the Franklin County Auditor; provided, € however,that failure to isle shall not affect the validity of this Agreement. j IN WITNESS WHEREOF, the Parties have executed this Agreement by duly authorized officers on the day and year first written above. i Interlocal Agreement Adoption of Solid Waste Mir-agement Plan-3 0 8 466 BOARD OF COUNTY COMMISSIONERS FRANIKLIN TY, WASHINGTON Rob Koch, Chainii Rick Miller, Member 'NcfZ-J. &-rk;y7rTMFFIn Pro-Tens Attest: Approved as to Fonn.- Mary wi9drs RyanY.Ve?hulp Clerk of the Board for Franklin County Chief Civil Deputy Prosecutor C1;TYF PASCO,WASE[INGTON Joy Mayor Jo 0 n, ayor test; Approved 0 nil: 0 Clark, Ciy rleik Leland B. Kerr, City Attorney CITY OF CONNELL,WASHINGTON Mayor Attest: Approved as to Form: City Clerk City Attorney CITY OF MESA,WASHINGTON Mayor At-test: Approved as to Form: City Clerk City Attorney Interlocal Agreement Adoption nf'Solid Waste Management Plan.4 I � 1 FRANKLEY COUNTY RESOLUTION tiro. BEFORE THF, BOARD OF COUNTY COMMISSIONERS Off' FRANKLIN COUNTY WASHINGTON RE: AGREEMENT BETWEEN FRANKLIN COUNTY SOLID WASTE AND THE CITY OF PASCO WHEREAS, pursuant to RCW 36.01.010 and RCW 36.32.120 the legislative authority of each county is authorized to enter into contracts on behalf of the County and have the care of County property and management of Count' funds and business; and WHEREAS, the Board of Franklin Cotiinty Commissioners constitutes the legislative authority Of Franklin County and desires to enter into the attached agreement as being in the best interest of Franklin County, NOW,THEREFORE,BE IT RESOLVED that the attached ab eement between Franklin County Soid Waste and the City of Pasco, is hereby approved by the Board, APPROVED this =Z_ day of 1;o%ember; 2008. BOARD OF COUNTY COMMISSIONERS FRANKLIN COUNTY, WASHINGTON Robet-t E. Koch, Chair Rick M' Chair Pro Tern i "'N 6-a Corkru ember Attest: Clerk ofc e Board t i AGENDA REPORT FOR: City Council April 22, 2010 TO: Gary Crutch :.t -Manager Workshop Mtg.: 4/26/10 Regular Mtg.: 513110 FROM: Stan Strebel, eputy Cry er SUBJECT: Utility Rate Adjustments 1. REFERENCE(S): 1. Proposed Ordinance 2. Water, Sewer Fund Analysis II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 4126: Discussion 5/3: MOTION: I move to adopt Ordinance No. , providing for adjustments to water and sewer utility rates effective July 1, 2010, and to irrigation rates effective January 1, 2011, and amending Chapter 3.07 of the Pasco Municipal Code regarding utility rates and, further, to authorize publication by suininary only. III. FISCAL IMPACT: (Water, Sewer, Utility Tax) IV. HISTORY AND FACTS BRIEF: A) In preparation for the issuance of S6 million of water and sewer revenue bonds to pay for a portion of the new water treatment plant ($3 million), and the second clarifier at the sewer plant and other sewer projects ($3 million), staff has prepared an analysis of the projected revenues and expenses for the water and sewer fund over the next several years. B) The analysis suggests that while the sewer fund is relatively healthy, the water fund will shortly be lacking the resources necessary to cover operating expenses, meet debt service obligations and accomplish smaller, but necessary capital projects. Additionally, the irrigation fund is in a negative cash situation owing to significant improvements that have been made over the last few years. The attached analysis sheets illustrate the effect of the proposed rate changes suggested below. C) Staff recommends a water service rate increase composed of two parts. First, the monthly residential base fee (314" meter) be increased by $2.00 to $12.50 (19 1/'r)); second, the consumption rate be increased from 54¢, to 65¢/hundred cubic feet (cf) (2.0.3%). Non-residential base and consumption rates would be increased by like percentages. The two adjustments, combined, are expected to generate an additional $996,700/yr; sufficient to cover the projected combination of operational and debt service expenses. The typical resident would realize an increase in monthly water rate charges of$3.10. 4(d) D) Fortunately, continued growth in sewer revenues, with monthly static expenses, offers the opportunity to offset part of the water rate increase to the typical homeowner. Given current projections, staff recommends the monthly residential sewer fee be reduced by$1.53 and other user classes by a commensurate 5%. The effect of this change will reduce the combined impact to a typical resident to $1.57/month. See the table below for a comparison of current and proposed fees for a typical single family home on a monthly basis: CURRENT PROPOSED Water Base $10.50 $12.50 Water Consumption $5.40 $6.50 1,000 cl Sewer 527.53 $26.00 TOTAL $43.43 $45.00 E) With the proposed rate adjustments, the City's overall utility rates would still compare favorably to those of neighboring cities as shown below; PASCO RICHLAND KENNEWICK Water $19.00 $30.20 $19,89 Sewer $26.00 $2535 ' $19.24 TOTAL $45.00 $55.55 $39.13 F) Irrigation water rates were reduced from $32.00 to $24.00 per month in 2004. The system has undergone considerable growth and improvements over the last several years and growth has paid for most of the improvements. In order to replace the irrigation fund into a positive cash position, a $2.00 per month increase (9.3%) to $26.00 is recommended. Irrigation charges apply from April through October. In order to limit the impact on homeowners for this year, it is recommended that this increase become effective January 1, 2011. V. DISCUSSION: A) Water base rates were last increased by 4% in 2003 and 2004 following the completion of a utility rate study. Sewer rates were increased by 2% in each of those years. Sewer Rates (excluding the liotel/hotel rate) were reduced by 10% beginning in 2007. B) It should be noted that the last water rate adjustment occurred in 2004. Had the water base and consumption rate been adjusted each year for inflation (CPI), the current monthly cost would be $18.31 (a 15.2% increase over $15.90) and slightly lower than the $19.00 that will result from this recommendation. Having delayed those adjustments until truly needed (2010), ratepayers have paid the least possible for quality water service over the past six years. C) In terns of actual dollars (not percentages) the combined monthly expense for a typical residence in 2004 was $46.90. After the proposed adjustments to both water and sewer, the same resident would pay$45.00 monthly, D) Staff recommends approval of the water and sewer rate adjustments effective July 1, 2010. ORDINANCE NO AN ORDINANCE of the City of Pasco, amending Pasco Municipal Code Sections 3.07.160 (Water User Fees), 3.07.170 (Sewer User Fees) and 3.07.210 (Irrigation Water Utility) regarding utility rates. WHEREAS, The City Council has determined that certain amendments to the Water, Sewer and Irrigation user fees are needed; NOW, THEREFORE, the City Council of the City of Pasco, Washington, Does Ordain as Follows: Section 1. PMC Section 3.07.160, subsections A), B) and C) are amended to read as follows: 3.07.164 WATER USER FEES: A) Inside City: Fee/C are Reference 1) Consumption—per 100 cubic foot $044$0.65 13.20.050 2) Bulk—per 1000 gallons S@-.7-5 $0.90 13.20.070 B) Residential—single family base fees; Effective Dates: 1/1/04 7/1/10 1) 314 and 5/8 inch— per month P0.50 $12.50 13.20,020 2) 1 inch—per month $i 5.75 $18.74 13,20.020 3) Outside City; effective 1 1/1/02 90% surcharge 13.20,080 Sr. Citizen/Low Income: 4) 3/4 and 5/8 inch — per month 83.59 $4.17 13.20.040 5) 1 inch— per month S55 $6.25 13.20.040 6) Outside City; effective 1 111102 90% surcharge C) Commercial —multi-family, irrigation, commercial base fees; 1) 3/4 inch—per month $-14.9 $17.61 13.20.030 2) 1 inch —per month Pi.37 $25.43 13.20.030 3) 1-1/2 inch — per month 941.69 $49.61 13.20.030 4) 2 inch—per month $66.88 $79.59 13.20.030 5) 3 inch— per month $91.34 $108.69 13.20.030 6) 4 inch— per month $131.60 $156.60 13.20.030 7) 6 inch — per month $205.43 $244.46 13.20.030 8) 8 inch—per month $294A9 $338.77 13.20.080 9) Outside City; effective 1 l/1/02 90% surcharge Section 2. FMC Section 3,07.170 subsection A) is amended to read as follows: 3.07.170 SEWER USE FEES: A) Residential and Commercial Base Fee Fee/Charge Reference Effective 7/1110 1) Residential: a) 1-4 Units—per month $27.53 $26.00 13.40.020 b) 5 and over— per month $22.05 $20.95 13.40.020 c) Outside City 50% surcharge 13.40.060 d) Consumption None Sr. Citizen/Low Income: a) Single Dwelling Unit $9.48 $8.72 13.40,050 b) Outside City 50% surcharge 13.40.060 2) Commercial a) Base Fee: per month $36.79 $34.95 13.40.040 b) Consumption per 100 cubic feet over 1000 $1.29 13.40.040 cubic feet 3) Hotel/Motel: a) Base Fee: per unit/per month $640 $5.51 13.40.030 b) Consumption per 100 cubic feet over 1000 $1.29 13.40.040 cubic feet c) Outside City 50% surcharge 13.40.060 Section 3. PMC Section 3.07,210 subsections A) and D) are amended to read as i'ollows: 3.07.210 IRRIGATION 'WATER UTILITY A) Irrigation water service; monthly rate, during Fee/Charge Reference irrigation season: Effective Dates 4/1/04 1/1111 1) Base rate, per unit, for single family residential $24.00 $26.00 13.61.190(A) properties 2) Base rate,per unit, for non-single family $24,00 $26.00 13.61.190(B) residential property 3) Per irrigation unit $ 59 $8.12 13.61.190(C) 4) Per irrigated acre (public parks, playgrounds and $70.09 $75.81 13.61.190(D) open spaces) B) Unauthorized turn-on (any repair cost additional) $50.00 13.61.090 C) Discoruiect"Connect Service due to violation $50.00 13.61.100 D) Annual System Availability fee $82-00 $88.80 13.61.060 Ordinance Amending PMC 3,07.160, 3,07.170 and 3.07.2 10 Page 2 I Section 4. This ordinance shall be in full force and effect on and after July 1, 2010 after passage and publication, as provided by law. PASSED by the City Council of the City of Pasco at a regular meeting the 3rd day of May, 2010. Matt Watkins, Mayor Pro-Tem ATTEST: APPROVED AS TO FORM: Debra L. Clark, City Clerk Leland B. Kerr, City Attorney Ordinance Amending PMC 3.07.1 b0, 3.07.170 and 3.07.2.10 Page 3 WATER Actual Estimated Estimated Estimated Estimated Estimated Estimated 2009 2010 2011 2012 2013 2014 2015 TOTAL OPERATING REVENUES 6,687,079 7,162,625 7,680,100 7,822,296 7,966,616 8,113,159 8,252,976 TOTAL OPERATING EXPENSES 4,492,167 4,932,843 5,178,583 5,351,613 5,532,061 5,720,266 5,916,585 NET INCOME 2,194,912 2,229,783 2,501,517 2,470.683 2,434,555 2,392,893 2,336,391 TOTAL CAP OUTLAYS 7,223,814 8,675,000 820,000 824,000 820,000 820,000 820,000 LESS; OUTSIDE FUNDING SOURCES 9,941,061 3,000,000 0 0 0 0 0 DEBT SERVICE 1,223,826 1,691,772 1,822,875 1,818,986 1,809,187 2,042,487 2,042,487 TRANSFERS OUT 35,215 28,238 28,238 28,238 28,238 28,238 28,238 BEGINNING CASH RESERVES 2,399,549 6,087,883 950,893 809,535 641,232 446,599 -22,995 ENDING CASH RESERVES 6,087,883 950,893 809,535 641,232 446,599 -22,995 -549,091 NET INCOME FOR DEBT SERVICE REQT 3,163,394 3,447,907 3,781,093 3,762,826 3,739,537 3,710,993 3,667,894 NET INCOME AFTER DEBT SERVICE 1,939,569 1,756,135 1,958,218 1,943,839 1,930,350 1,668,506 1,625,407 DEBT SERVICE COVERAGE RATIO 2.58% 2.04% 2.070/6 2.070A 2.07% 1.82% 1.800/. Assume 2010 operating revenues increase by$498K Assume 2011 operating revenues at 102% 2010 plus$498K 2012 and beyond, prior year plus 2% SEINER Actual Estimated Estimated Estimated Estimated Estimated Estimated 2009 2010 2011 2012 2013 2014 2015 TOTAL OPERATING REVENUES 7,609,737 7,450,914 7,651,997 7,761,470 7,965,454 8,187,605 8,417,328 TOTAL OPERATING EXPENSES 3,592,312 4,202,252 3,842,046 3,990,636 4,145,594 4,307,208 4,475,778 NET INCOME 41017,425 3,248,662 3,809,950 3,770,834 3,819,660 3,880,397 3,941,550 CAPITAL OUTLAYS 1,520,250 2,120,000 3,050,000 770,000 500,000 500,000 500,000 LESS: OUTSIDE FUNDING SOURCES 369,606 3,367,646 355,244 240,301 227,800 227,300 227,300 DEBT SERVICE 2,430,006 2,546,067 2,648,601 2,532,520 2,509,600 2,509,100 2,509,100 TRANSFERS-OUT 1,127,996 288,000 300,000 312,000 324,000 336,000 336,000 BEGINNING CASH RESERVES 1,184,249 493,028 2,155,270 321,863 718,477 1,432,537 2,195,134 ENDING CASH RESERVES 493,028 2,155,270 321,863 718,477 1,432,537 2,195,134 3,018,884 NET INC. FOR DEBT SERV. COVERAGE 4,703,056 3,897,823 4,471,012 4,447,913 4,513,428 4,590,938 4,669,563 NET INCOME AFTER DEBT SERV. 2,273,050 1,351,756 1,822,411 1,915,393 2,003,828 2,081,838 2,160,463 DEBT SERV COVERAGE RATIO 1.94% 1.53% 1.69% 1.76% 1.80% 1.83% 1.86% Assume 2010 operating revenues decrease by $152.5K Assume 2011 operating revenues at 103% 2010 less $152,5K 2012 and beyond, prior year plus 3% - IRRIGATION Actual Estimated Estimated Estimated Estimated Estimated Estimated 2009 2010 2011 2012 2013 2014 2015 TOTAL SOURCES OF FUNDS 721,553 1,238,428 850,193 885,424 920,972 956,812 992,910 TOTAL OPERATING EXPENSES 598,069 681,517 713,050 740,245 768,501 797,870 828,401 NET INCOME 123,484 556,911 137,142 145,179 152,470 158,942 164,509 TOTAL CAPITAL OUTLAYS 392,843 180,000 100,000 100,000 100,000 100,000 100,000 LESS: OUTSIDE FUNDING SOURCES 0 0 0 0 0 0 0 DEBT SERVICE 67,944 67,785 66,366 66,477 66,477 66,477 66,477 TRANSFERS OUT 0 0 0 0 0 0 0 BEGINNING CASH RESERVE -102,005 -439,308 -130,182 -159,405 -180,703 -194,709 -202,245 ENDING CASH RESERVE -439,308 -130,182 -159,405 • -180,703 -194,709 -202,245 -204,212 NET INCOME FOR DEBT SERVICE REQT 185,025 621,171 209,851 220,982 231,367 240,933 249,594 NET INCOME.AFTER DEBT SERVICE 115,025 551,171 139,851 150,982 161,367 170,933 179,594 DEBT SERVICE COVERAGE RATIO 2.64% 8.87% 3.00% 3.16% 3.31% 3.44% 3.57% Assumes 2011 Irrigation Rate @ 26/mo AGENDA REPORT FOR: City Council April 20, 2010 TO: Gary Crutchfield, 'Inager Workshop Mtg.: 4/26/10 Rick White,' f Regular Mtg.: 5/3/10 Community& Eco comic Development Director FROM: Angela R. Pitman, Block Grant Administrator SUBJECT: Signature Authority for the Neighborhood Stabilization Program (NSP) I. REFERENCE(S): A. Resolution II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 4/26: DISCUSSION 5/3: MOTION: I move to approve Resolution authorizing the city manager to execute all documents related to the acquisition, rehabilitation and resale of real properties for the Neighborhood Stabilization Program. III. FISCAL IMPACT: $379,704 in federal NSP funds. IV. HIS'T'ORY AND FACTS BIUEF: A. The NSP is a federal Block Grant program aimed at minimizing the effects of foreclosures on communities. In February 2009, the City entered into a contract with Washington State Department of Commerce for the administration and implementation of the NSP Plan. The Housing and Urban Development Department (HUD) recently accelerated the deadline for obligating hands from March 19, 2013 to September 18, 2010. Funds not obligated by that date will be required to be returned to HUD. B. The original focus for use of funds for the NSP was to provide down payment assistance for purchase of foreclosed properties. Due to the accelerated timeframe, Council amended the NSP program to allow for acquisition and rehabilitation of foreclosed properties. This occurred on March 15, 2010 through Resolution 3220. V. DISCUSSION A. HUD and state auditors routinely request documentation that City Council has granted authority for appropriate staff to sign project-level documents that implement a Council-approved program. The NSP and the amendment described above constitute the NSP and have been approved by Council. This Resolution granting signature authority to the city manager implements the approved NSP and provides the necessary accounting documentation. B. It is estimated that two to four foreclosed properties will be acquired, then rehabilitated and sold. Authorizing the city manager to execute project-related documents will allow the City to implement the commitnnent of NSP funds in an effective and timely manner. 4(e) RESOLUTION NO. A RESOLUTION GRANTING SIGNATURE AUTHORITY FOR THE NEIGHBORHOOD STABILIZATION PROGRAM (NSP) PLAN ACTIVITIES WHEREAS, the City has resolved in previous resolutions as follows; Resolution 3148 - Approved the NSP Work Plan for stabilizing neighborhoods negatively affected by foreclosures and abandoned properties; and Resolution 3152 - Approved NSP Guidelines for carrying out down payment assistance activities; and Resolution 3220 - Amended the NSP Work Plan to reallocate fiends for acquisition and rehabilitation activities; and WHEREAS, the City has entered into a contract with Washington State Department of Commerce for the administration and implementation of the Neighborhood Improvement Program Plan with a deadline for obligating fiends totaling $426,343 by September 18, 2010; and WHEREAS, participation in certain federal programs is beneficial to increase the supply and quality of affordable housing, provide economic opportunities to housing stakeholders, and stabilize neighborhoods; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: That the city manager is hereby authorized to execute all documents related to the acquisition, rehabilitation and resale of real properties for the Council-approved Neighborhood Stabilization Program in compliance with federal, state and local regulations. PASSED by the City Council of the City of Pasco this day of , 2010. CITY OF PASCO: Matt Watkins Mayor Pro-Tem ATTEST: APPROVED AS TO FORM: Debra L. Clark Leland 13. Kerr CMC City Clerk City Attorney AGENDA REPORT FOR: City Council April 20, 2010 TO: Gary Crutchfield, I lager Workshop Mtg.: 4/26/10 Rick White, ` \I Regular Mtg.: 5/3/10 Community & Economic Development Director FROM: Angela R. Pitman, Block Grant Administrator SUBJECT: Signature Authority for the Community Housing Improvement Program(CHIP) I. REFERENCE(S): A. Resolution II. ACTION REQUESTED OF COUNCIL/ STAFF RECOMMENDATIONS: 4/26: DISCUSSION 5/3: MOTION: I move to approve Resolution authorizing the city manager to execute all documents related to the acquisition, rehabilitation and resale of real properties for the Community Housing Improvement Program. III. FISCAL IMPACT: Various amounts as approved by Council in any given program year. IV. HISTORY AND FACTS BRIEF: A. The CHIP is a community housing improvement program funded with federal HOME Block Grant funds aimed at improving decent housing opportunities in Pasco. City Council approves the annual expenditure of HOME funds. B. Activities funded by the CHIP program include doN"i payment assistance for first time homebuyers, rental rehabilitation loans for owner-occupied and rental properties, and infill. The infill project involves acquisition of vacant property and development of affordable housing units for low-moderate income families. C. The City has used HOME funds to purchase property and construct three single- family houses on South 5`t' Street north of Ainsworth Avenue. These three homes are nearly ready to close for purchase. D. Council has approved an infill project similar to 5th Street and Ainsworth Avenue as a strategy for use of HOME fiends in 2010 (estimated use of $171,700 in HOME funds). V. DISCUSSION A. HUD and state auditors routinely request documentation that City Council has granted authority for appropriate staff to sign project-level documents that implement a Council-approved program. The allocation of HOME Program funds is approved by Council on an annual basis. This Resolution granting signature authority to the city manager implements the approved annual HOME Program and provides the necessary accounting documentation. B. It is anticipated that vacant properties will be acquired, then developed and sold during 2010 and future program years. Authorizing the city manager to execute project-related documents will allow the City to effectively administer the HOME program and the use of federal grant funds. 4(f) RESOLUTION NO. A RESOLUTION GRANTING SIGNATURE AUTHORITY FOR COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP) ACTIVITIES WHEREAS, the City has resolved in previous resolutions as follows: Resolution 2908 - Approved CHIP regulations to increase affordable housing opportunities utilizing federal funds; and Resolution 2912 - Approved acquisition of two vacant lots for affordable housing opportunities with HOME, funds; and WHEREAS, the City has entered into a contract with Tri-Cities HOME Consortium that is automatically renewed annually for receipt of HOME entitlement funds; and WHEREAS, Staff prepares an annual Work Plan for the approval of Council, for use of the annual HOME entitlement funds; and WHEREAS, participation in certain federal programs is beneficial to increase the supply and quality of affordable housing, provide economic opportunities to housing stakeholders, and stabilize neighborhoods; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: That the City Manager is hereby authorized to execute all docuFnents related to the acquisition, rehabilitation and sale of real properties for the Council-approved Community Housing Improvement Program in compliance with federal, state and local regulations. PASSED by the City Council of the City of Pasco this day of , 2010. CITY OF PASCO: Matt Watkins Mayor Pro-Tern ATTEST: APPROVED AS TO FORM: Debra L. Clark Leland B. Kerr CMC City Clerk City Attorney