HomeMy WebLinkAbout2013.10.14 Council Workshop PacketWorkshop Meeting
1. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance.
AGENDA
PASCO CITY COUNCIL
7:00 p.m.
3. VERBAL REPORTS FROM COUNCILMEMBERS:
4. ITEMS FOR DISCUSSION:
October 14, 2013
(a) Airport Exercise Presentation. (NO WRITTEN MATERIAL ON AGENDA). Presented by Dave
Hare, Pasco Fire Captain and Ron Foraker, Pasco Airport Manager.
(b) Tourism Promotion Area:
1. Agenda Report from Gary Crutchfield, City Manager dated October 9, 2013.
2. 2014 TPA Business and Marketing Plan (Council packets only; copy available in City
Manager's office for public review).
3. 2014 TPA Budget Summary.
(c) Recreational Marijuana:
1. Agenda Report from Rick White, Community & Economic Development Director dated
October 8, 2013.
2. Proposed Resolution.
(d) Road 60 and Three Rivers Drive Park Architectural Services:
1. Agenda Report from Rick Terway, Administrative & Community Services Director dated
October 3, 2013.
2. Vicinity Map.
3. PSA Summary Sheet.
(e) City Hall Repairs:
1. Agenda Report from Rick Terway, Administrative & Community Services Director dated
October 3, 2013.
2. PSA Summary Sheet - Vineyard Country Building and Design Inc.
3, PSA Summary Sheet - Matheson Painting Inc.
(f) Water Extension Agreement (Burns/Kohler Roads):
1. Agenda Report from Gary Crutchfield, City Manager dated October 10, 2013.
2. Vicinity Map,
3. Proposed Agreement.
5. OTHER ITEMS FOR DISCUSSION:
(a)
(b)
(c)
6. EXECUTIVE SESSION:
(a)
(b)
(c)
7. ADJOURNMENT
REMINDERS:
1. 6:00 p.m., Monday, October 14, Conference Room #1 - Old Fire Pension Board Meeting.
(COUNCILMEMBER REBECCA FRANCIK, Rep.; SAUL MARTINEZ, Alt.)
2. 11:45 a.m., Tuesday, October 15, Pasco Red Lion - Pasco Chamber of Commerce Membership
Luncheon. (Election Forum - Proposition #1 & #2)
3. 5:30 p.m., Wednesday, October 16 - Benton, Franklin & Walla Walla Counties Good Roads &
Transportation Association Meeting. (COUNCILMEMBER BOB HOFFMANN, Rep.; REBECCA
FRANCIK, Alt.)
4. 3:30 p.m., Thursday, October 17, FCEM Office - Franklin County Emergency Management Board
Meeting. (MAYOR MATT WATKINS, Rep.; COUNCILMEMBER TOM LARSEN, Alt.)
5. 7:30 a.m., Friday, October 18, Richland City Council Chambers - Hanford Communities Governing
Board Meeting. (COUNCILMEMBER MIKE GARRISON, Rep.; AL YENNEY, Alt.)
6. 11:30 a.m., Friday, October IS - Benton - Franklin Council of Governments Board Meeting.
(COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK, Alt.)
AGENDA REPORT
TO: City Council October 9, 2013
FROM: Gary Crutchfie anager Workshop Mtg.: 10/14/13
Regular Mtg.: 10/21/13
SUBJECT: Touri sm Prom ion Area
I. REFERENCE(S):
1. 2014 TPA Business and Marketing Plan (Council packets only; copy available in City
Manager's office for public review)
2. 2014 TPA Budget Summary
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
10/14: Presentation by Kris Watkins, President and CEO, Tri- Cities Visitor and Convention
Bureau,
10/21: MOTION: I move to approve the 2014 Business and Marketing Plan and Operating
Budget for the Tourism Promotion Area in the total amount of $1,060,000.
III. FISCAL IMPACT:
None.
IV. HISTORY AND FACTS BRIEF:
A) The Tourism Promotion Area (TPA) was formed in late 2004 to generate and administer the
proceeds of a "per room night assessment" on hotels /motels in the Tri- Cities, imposed by the
hotels themselves.
B) The interlocal agreement (between Pasco, Kennewick and Richland) that created the TPA
requires the annual budget and expenditure from the reserve account for the TPA to be
approved by the City Council.
V. DISCUSSION:
A) The TPA "assessment" is remitted by the hotels to the state which, in turn, distributes it to
the city in which it was collected. The city is obligated to pass the funds to the TPA, for use
in accordance with the approved budget.
B) The TPA Commission recently requested the city approve an increase in the room
assessment ($2 /night). The City Council recently approved the request, effective January 1,
2014. The increased rate throughout the Tri- Cities will provide an annual budget of
$1,060,000. The proposed budget and work plan reflects the increased rate.
C) Council should approve the 2014 TPA Operating Budget and Special Project Expenditures
or indicate changes necessary to gain approval.
4(b)
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Tourism Development
The Tri- Cities, being a three -to -four hour drive from major metropolitan areas, is gaining popularity for
weekend get- aways, particularly for those interested in wine, golf and recreation.
In recent years, interest in history and cultural tourism has also created a demand for the Tri- Cities as a
destination. As tours of Hanford and the B- Reactor have become more accessible, visitors are able to plan their
vacations around these events. The popularity of the tours, attracting history buffs for tours that frequently sell
out the same day they are introduced, supports the idea that creating a Manhattan Project National Historical
Park (including Hanford, Oakridge and Los Alamos) would have a significant impact on the future of visitor
spending in the region. Inclusion as part of the National Parks System along with the Hanford Land Use Plan,
which incorporates recreation, increased river access, and education on the history of Hanford, have resulted in
a new way of thinking about how the Tri- Cities is marketed to the outside world.
The Visitor and Convention Bureau will continue to market the traditional attractions frequently referred to as
the 03 W's ", of water, weather and wine; but the potential for growth in other areas will receive increased focus
as we strive to attract new visitors and increase visitor spending in the community.
2014 Actions
Branding: The results of a community wide
branding program are expected to be completed
late in 2013. As a result, in 2014 a massive effort
to introduce the new brand to visitors and the
business community will take shape. This
branding initiative will affect all Bureau
marketing efforts and programs.
Promote the Destination: Promote increased
leisure travel through development of Golf &
Wine programs.
• Travel Tradeshows: Attend travel and golf
related trade shows in key Northwest markets,
such as Seattle, Spokane and British Columbia.
j • Materials: Develop marketing materials for golf
packaging; pairing hotels and local golf courses
to offer seamless one -stop shopping for
consumers.
• Advertise: Continue advertising campaigns to
? promote the Tri- Cities as a leisure travel
destination.
• Social Media: The Bureau has developed quite a
following on both Facebook and Twitter which
j can be used to promote the Tri- Cities.
1
24 _
• Relationships: Attend industry events for
the development of wine tourism in our
region, including promotion of the
Columbia, Yakima and Red Mountain
Appellations.
Hanford Land Use: The Bureau will
continue to take an active role in
developing and executing a Hanford Land
Use Plan and will continue supporting
legislation to achieve National Park Status
for the Manhattan National Historical Park
• Packages: Work with member hotels to
showcase their existing packages both via
our website and to travel media.
Increasing Communication: Implement
quarterly e-mail newsletter to a targeted
list of leisure travelers.
Washington Wine Country: In
conjunction with our partners, we will
continue to market Yakima, Tri - Cities and
Walla Walla as the authentic wine
experience. Components will include
website, advertising, media outreach and
industry outreach (wineries).
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Budget Su —With Increased 7ouvisni Prornotiorl fAssessrraesa °�
Revenues
Kennewick
Pasco
Richland
Total:
Expenditures
Group Markets
City Wide Conventions
Associations
Corporate & Government
SMERF (social, military,
education, religious, fraternal)
Sports
Housing & Groups Services
Tourism Development
Administration
(administrative staff, office
supplies, rent, telephone
postage, equipment
maintenance, etc.)
Opportunity Fund
Accounting/Professional
Capital Expenditures
Total:
26
2013
Proposed
2034
Fudgit
Bi,ttigei
$357,000 42%
$4.66,400
44%
$187,000 22%
$243,800
23%
$306,000 36%
$349,800
33%
$850,000 100%
$1,060,000
100%
$359,162 42% $402,412 38%
$57,762
7%
$59,362
5.6%
$180,31.3
21.4%
$302,063
28.8%
$178,763
21%
$7,81,163
17%
$50,000
5.9%
$90,000
8.5%
$22,OoO
2.6%
$22,000
2%
$3,000
.4%
$3,000
0.1%
$850,000 100% $1,060,0016 100%
i i u i i t
AGENDA REPORT
FOR: City Council,,
TO: Gary Crutchfie i anager
1
FROM: Rick White, Community &Economic Development
Director
SUBJECT: Recreational Mariivana (MF# CA2013 -005)
I. REFERENCE(S):
1. Proposed Resolution
October 8, 2013
Workshop Mtg.: 10/14/13
Regular Mtg.: 10/21/13
H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
10/14: DISCUSSION
10/21: MOTION: I move to approve Resolution , with a 12 month term that
adopts findings in support of retention and extension of the
moratorium on the issuance of licenses relating to recreational
marijuana.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A. In 2012, Initiative 502 (I -502) legalizing the recreational use of marijuana was approved
by the electorate. I -502 establishes a system, overseen by the State Liquor Control Board
(LCB), to license, regulate and tax the production, processing and sale of marijuana. The
licensing of marijuana production, processing and sales will be handled by the LCB
similar to the process for liquor licenses.
B. The LCB has announced that rules for production, processing and retail sales of
marijuana will be effective on November 16, 2013 and that the LCB will accept
applications for all license types on November 18, 2013.
C. The State operating budget has directed the LCB to work with the Departments of
Revenue and Health to develop recommendations to the Legislature regarding the
interaction of medical marijuana and the recreational marijuana system. The deadline for
these final recommendations is January 141", 2014 so the recommendations are available
for the 2014 Legislative Session.
D. City Council approved Resolution 3507 on September 3, 2013 establishing a moratorium
on City issuance of all types of licenses related to recreational marijuana.
V. DISCUSSION:
A. Issuing city business licenses for possession and sale of marijuana conflicts with Federal
law as marijuana is currently a Schedule 1 drug under the Federal Controlled Substances
Act. As a controlled substance, the possession, sales, production and processing of
marijuana is illegal at the Federal level.
B. Statewide - there is a great amount of uncertainty on the direction of local regulations
regarding this issue. Pasco's moratorium is intended to provide adequate time to clarify
the Federal position on recreational marijuana, research other examples of local
regulations, learn from the experiences of other municipalities that have adopted local
regulations, and incorporate any new legislative directives as a result of the 2014
Legislative Session.
C. Once the 2014 State Legislative Session has concluded, staff will finalize proposed
regulations with the Planning Commission and return to Council with a recommended set
of local regulations.
D. The proposed resolution extends the moratorium until September 1, 2014. The work plan
contained in the resolution depicts the staging expected for adoption of appropriate
regulations for recreational and medical marijuana use. The moratorium will expire upon
adoption of regulations by Council.
4(c)
RESOLUTION NO.
A RESOLUTION OF THE CITY OF PASCO ADOPTING FINDINGS IN SUPPORT OF RETENTION
OF THE MORATORIUM PROHIBITING PRODUCING, PROCESSING AND RETAIL SALES OF
RECREATIONAL MARIJUANA WITHIN THE CITY.
WHEREAS, Initiative 502 was passed by the voters of the State of Washington in November
2012 providing a framework which marijuana producers, processors, and retailers can become licensed by
the State of Washington; and
WHEREAS, under Initiative 502, the Washington State Liquor Control Board (Board) is tasked
with the responsibility to adopt regulations governing the licensing and operation of marijuana producers,
processors, and retailers, and the Board is currently working on the regulations and is projecting that the
regulations will be issued later this year; and
WHEREAS, collective gardens and marijuana production, processing, and retailing uses must be
addressed in the City's zoning code, but the impacts of these uses are still largely unknown and the
regulations that the City will need to address them are uncertain pending the Board's adoption of its
licensing regulations and procedures; and
WHEREAS, possession and use of marijuana for any purpose, including medical use, remains
illegal under Federal Law. Marijuana is listed as a Schedule I drug under the Federal Controlled
Substance Act; and
WHEREAS, there are several lawsuits pending, which would eventually impact regulations
related to marijuana production, distribution, sales and use; and
WHEREAS, it is anticipated that producing, processing, and retail sales of recreational marijuana
may increase the risk to health and safety, require increased police and code enforcement activities, and
affect the use and enjoyment of surrounding properties without appropriate regulations; and
WHEREAS, unless the City addresses production, processing and retail sales of marijuana, and
other marijuana- related uses, such uses may be able to locate in the city without regulation and thereby
have adverse impacts on the City and its citizens; and
WHEREAS, the City intends to develop appropriate zoning and land use regulations to
accommodate the production, processing, and retail sales of recreational marijuana to the extent such
activities do not conflict with Federal Law; and
WHEREAS, The Liquor Control Board and Departments of Revenue and Health are directed to
make recommendations to the State Legislature in January of 2014 regarding the interaction of laws
relating to recreational and medical use of marijuana; and
WHEREAS, the City Council has determined that it is in the best interest of the City that a
moratorium be established to provide the City an opportunity to study appropriate regulations for
production, processing and retail sales of recreational marijuana and to develop a work plan for the
implementation of such regulations that comply with State and Federal Law; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO RESOLVE AS
FOLLOWS:
Resolution - 1
Section 1. The City of Pasco makes the following findings:
A. The City of Pasco does not currently have specific regulations addressing the conditions or
locations of recreational marijuana producing, processing or retail facilities within the City.
B. The City adopted a moratorium on the issuance of all types of licenses regarding recreational
marijuana through Resolution 3507 on September 3rd, 2013.
C. The City conducted a public hearing on the propriety of the moratorium in an effort to
provide the opportunity for public comments on October 7h, 2013 and heard testimony from
1 citizen expressing concern over a moratorium on recreational marijuana with a prohibition
on medical marijuana already in place.
D. The City Council finds that zoning, licensing, and permitting regulations should be
established in corroboration with recommendations stemming from the 2014 State Legislative
session.
E. The City must ensure that proposed locations for producers, processors and retail sales of
marijuana do not cause secondary impacts to existing land uses — including burglaries, theft,
trespass or public use of marijuana.
F. The City has developed a work plan for the development of regulations regarding recreational
marijuana attached to this Resolution as Exhibit "A."
Section 2. Moratorium Retained. The moratorium imposed by Resolution 3507 on
September 3rd, 2013 is retained prohibiting the issuance of all types of licenses relating to recreational
marijuana within all zoning districts of the City of Pasco.
Section 3. Term of the Moratorium. The moratorium established by Resolution 3507 shall
continue in effect for a period extending to September 1, 2014, unless repealed, extended or modified by
the City Council after a public hearing and the entry of appropriate findings of fact as required by RCW
35A.63.220, provided that the moratorium shall automatically expire upon the effective date of
regulations adopted by the City Council to address producing, processing, and retail sales of recreational
marijuana within the City of Pasco.
Section 4. Effective Date. This Resolution shall be in full force and effect upon its passage
and signature below.
PASSED by the City Council of the City of Pasco, Washington, as its regular meeting dated this
day of 2013.
Matt Watkins, Mayor
ATTEST:
Debra L. Clark, City Clerk
Resolution - 2
APPROVED AS TO FORM:
Leland B. Kerr, City Attorney
EXHIBIT "A"
October 2013 Recreational Marijuana Work Plan
The following steps are intended to identify the expected process of creating legislation unique to the City
of Pasco's needs and legislative priorities.
1. Research cities /states with similar circumstances /laws pertaining to recreational marijuana.
2. Research Washington Cities Insurance Association, Association of Washington Cities and the
Municipal Research and Service Center to determine latest developments, cautions, examples and
experiences in regulation of recreational marijuana.
3. Research current State law and reconcile the discrepancy of federal laws concerning
cultivation/production, processing and retail sale of recreational marijuana, the question of
precedence of State versus federal law and the risk of prosecution to City personnel implementing
State law.
4. Involve City Departments to determine the extent and degree of intervention needed from
permitting, licensing, taxation, code enforcement, crime prevention, public safety (police and fire
protection) and zoning standpoints.
5. Research the degree of consistency for regulation desired/needed from Benton and Franklin
counties and the cities if Kennewick, Richland and West Richland, and meet with these
jurisdictions as necessary to coordinate efforts.
6. Prepare interim report to City Council on progress of the work plan and anticipated timeline for
completion, and present to City Council after the conclusion of the 2014 State legislative session.
7. Develop draft legislative alternatives for regulating the production, processing and sale of
recreational marijuana.
8. Review with City management and revise as directed.
9. Conduct public workshops with the Planning Commission and revise draft regulatory alternatives
as needed.
10. Review developing State legislative amendments to State law concerning the production,
processing and sale of recreational marijuana. Consider extension of the moratorium and
adjustment of the work plan as necessary.
11. Conduct formal public hearing(s) with the Planning Commission to determine the Commission's
recommendation to City Council.
12. Present the recommended legislation to City Council at a Workshop.
13. Return to City Council for formal action as directed.
AGENDA REPORT
FOR: City Council ( ! October 3, 2013
TO: Gary Crutchfi�Manager Workshop Mtg.: October 14, 2013
lj.! Regular Mtg.: October 21, 2013
FROM: Rick Terway, erector, Administra e & Community Services
SUBJECT: Road 60 and Three Rivers Dr. Park Architectural Services
I. REFERENCE(S):
1. Vicinity Map
2. PSA Summary Sheet
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
10/14: Discussion
10/21: MOTION: I move to approve the Professional Services Agreement with CKJT
Architects for design of the Road 60 and Three Rivers Drive park and, further,
authorize the City Manager to sign the Agreement.
III. FISCAL IMPACT:
$35,980 — Park Impact Fees
IV. HISTORY AND FACTS BRIEF:
A) It has been the practice of the City when the joint construction of a new school
and park take place, for the City to contract with the same firm that is designing
the school to allow for project coordination. CKJT Architects is that firm. In
2004 the City and the School District entered into an Interlocal agreement which
defines the relationship between the District and the City for each project site, this
project will be `Schedule 3' to that agreement.
V. DISCUSSION:
A) The agreement is for the design of the park located at Road 60 and Three Rivers
Drive. After design phase is complete, CKJT will follow the project through the
construction phase to completion. The City portion of the project is bid with the
school and the City will reimburse the school district for the construction cost that
relate to the City's portion of the project. Staff will be coming back to Council
for approval of the construction phase once the project is bid and approval of the
addendum (Schedule 3) to the Interlocal agreement.
B) Staff recommends the approval of the agreement with CKJT Architects.
4(d)
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Professional Services Agreement
(Summary Sheet)
Project: Road 60 and Three Rivers Drive Park Proiect
Consultant: CKJT Architects
Address: 128 Vista Wav Kennewick WA 99336
Scope of Services: Desim and construction monitorine for a new nark at Road 60 and Three
Rivers Drive. This is a ioint Droiect with the Pasco School District. This Droiect is included in the
CIP Budaet and the Citv's Park Plan.
Term: November 1. 2013 Completion Date: December 2015
Payments to Consultant:
® Other: $35,980
Insurance to be Provided:
1. Commercial General Liability:
® $1,000,000 each occurrence;
® $2,000,000 general aggregate; or
2. Professional Liability:
® $1,000,000 per claim;
® $1,000,000 policy aggregate limit; or
Other Information:
AGENDA REPORT
FOR: City Council October 3, 2013
d
TO: Gary Crutchfi d' anager Workshop Mtg.: October 14, 2013
Regular Mtg.: October 21, 2013
FROM: Rick Terway, Director, A 4ative & Community Services
SUBJECT: City Hall Repairs
I. REFERENCE(S):
1. PSA Summary Sheet — Vineyard Country Building and Design Inc.
2. PSA Summary Sheet — Matheson Painting Inc.
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
10/14: Discussion
10/21: MOTION: I move to approve the Professional Service Agreement with
Vineyard Country Building and Design Inc. for repairs to City Hall
exterior and, further, authorize the City Manager to sign the
Agreement.
MOTION: I move to approve the Professional Service Agreement with
Matheson Painting Inc. for repairs to City Hall exterior and,
further, authorize the City Manager to sign the Agreement.
III. FISCAL IMPACT:
General Fund
IV. HISTORY AND FACTS BRIEF:
A) City Hall was built in 1922 as Pasco High School and in 1954 it became
McLoughlin Junior High. The City renovated the facility in 1995 and it became
Pasco City Hall. At that time both the interior and exterior were
renovated/remodeled to current day standards and is what we use today. The
exterior area located at the front of the building has come to the end of its life and
is in need of repair.
V. DISCUSSION:
A) The decorative front (cream colored area) as you enter City Hall from 3rd Avenue
is separating or spauling off the building. This is a safety hazard since it is above
the main entrance. Moisture and the extreme temperatures we experience have
caused cracking and finally total failure in places. CKJT Architects, the firm that
was contracted for the remodel, has looked at the deterioration and affirms staff's
recommendation.
B) The repairs involve sand blasting the loose material off the building, replacing it
with new material (which should have a longer life than the materials used in
1995) and repainting.
C) Staff recommends approval of the agreements with Vineyard Country Building
and Design Inc. and Matheson Painting Inc.
4(e)
Professional Services Agreement
(Summary Sheet)
Project: Citv Hall Exterior Repairs
Consultant: Vinevard Country Building and Design Inc,
Address: PO Box 2773 Pasco WA 99302
Scope of Services: Replace loose material to conform to current design. Repair areas as needed
and apDly stucco material to building
Term: November 1. 2013 Completion Date:
Payments to Consultant:
® Other: $16.620 w/o sales tax upon completion of work
Insurance to be Provided:
1. Commercial General Liability:
® $1,000,000 each occurrence;
® $2,000,000 general aggregate.
2. Professional Liability:
® $1,000,000 per claim;
® $1,000,000 policy aggregate limit.
Other Information: Proiect is weather dependent and may have to be completed in the spring
Professional Services Agreement
(Summary Sheet)
Project: Citv Hall Exterior Repairs
Consultant: Matheson Painting Inc
Address: 615 S Oregon Ave Pasco WA 99301
Scope of Services: Sandblasting & recovery of loose material
Term: November 1, 2013 Completion Date:
Payments to Consultant:
N Other: $13.350 w/o sales tax upon completion of work
Insurance to be Provided:
1. Commercial General Liability:
N $1,000,000 each occurrence;
N $2,000,000 general aggregate.
2. Professional Liability:
N $1,000,000 per claim;
N $1,000,000 policy aggregate limit.
Other Ihformation: Proiect is weather dependent and may have to be completed in the spring
AGENDA REPORT
TO: City Council
FROM: Gary Crutchfir,, anager
SUBJECT: Water Extension Agreement (Bums/Kohler Roads)
I. REFERENCE(S):
1. Vicinity Map
2. Proposed Agreement
October 10, 2013
Workshop Mtg.: 10/14/13
Regular Mtg.: 10/21/13
H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
10/14: Discussion
10/21: MOTION: I move to approve the water system extension agreement with Big Sky
LLC and Ted Tschrky and, fiuther, authorize the City Manager sign the
agreement.
III. FISCAL IMPACT:
Water Utility Fund ($290,000)
IV. HISTORY AND FACTS BRIEF:
A) Owners of two parcels of land in the northwest quadrant of the Pasco Urban Growth Area
(UGA) have planned for residential development of their respective parcels. Both parcels
are currently outside the city boundaries but within the Pasco UGA. Consequently, they
have determined it most appropriate for their developments to extend city water for domestic
use. Doing so allows half -acre lots with septic tanks, rather than one -acre lots with septic
tank and on -site well. Franklin County has approved the zoning to accommodate half -acre
lots dependent on city water service and is scheduled to approve the first plat later this
month.
B) The developers (Big Sky LLC and Ted Tschrky) have coordinated with city staff over the
past several months to identify an appropriate extension of the city's water system. A water
extension agreement has been drafted to memorialize the obligations of the developers and
the city, respectively, in terms of cost - sharing for the extension as well as design
requirements, annexation agreements and water rights. In essence, the developers will pay
the cost equivalent to an 8" waterline (minimum size) the entire length of the extension,
while the city will pay the equivalent cost of "oversizing" the waterline (to 12" and 16"
sizes) so it can function as a distribution main for the water system and serve the larger
vicinity in the future (this will avoid duplicate line installations in the future).
C) The city's share of the extension project will not exceed $290,000, or about 43 percent of the
total project cost. The developers will pay the balance of the project costs and the city will
provide them a "latecomer agreement ", whereby future connections to the water main will
reimburse the developers their fair share of the developers' expense not attributable to their
own properties. Participation in the developers' extension results in a much lower cost
project, as it is a private project not subject to prevailing wages; consequently, the city's cost
is likewise lower.
D) The agreement includes provision to ensure the developments provide for or offset their
consumption of the limited pool of water rights owned by the city. The calculation of
average domestic use by a home which has separate lawn irrigation water is .45 acre -feet. At
a market value of $1,500 per acre-foot, that represents approximately $700 per dwelling unit.
The agreement provides for payment of that amount before the city accepts the waterline
improvements. However, staff intends to propose an ordinance for Council consideration in
the near future to establish that fee as part of the cost of connecting a new home outside the
city boundary to the city's water system (currently, new homes outside the city are not
compensating the city for the water rights they are consuming).
4(f)
V. DISCUSSION:
A) The proposed agreement ensures appropriate extension of the city's water system to a portion
of its UGA that is quite likely to experience growth over the next decade. If not extended,
development will either not occur at all or will occur with wells and septic tanks on one acre
lots. The latter scenario would frustrate the logical extension of the water system over time,
eventually increasing costs for rate payers and retarding development values.
B) staff recommends approval of the extension agreement as presented.
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WATER SYSTEM EXTENSION AGREEMENT
THIS WATER SYSTEM EXTENSION AGREEMENT is entered into this day
of October, 2013, by and between Big Sky Developers, LLC, a Washington Limited Liability
Company (hereinafter referred to as Big Sky), Ted Tschirky, an Individual (hereinafter referred
to as Tschirky), and the City of Pasco, Washington, a Washington Municipal Corporation
(hereinafter referred to as "City"), for the purpose of extending water system improvements for
the benefit of the properties to be developed by Big Sky and Tschirky.
WHEREAS, Big Sky has entered into negotiations to purchase and develop certain real
property adjacent to Kohler Road, north of Burns Road for residential use, known as Spencer
Estates, and said real property is situated within the Pasco Urban Growth Area as designated by
Franklin County; and
WHEREAS, Tschirky owns certain real property adjacent to Dent Road, north of Burns
Road, and desires to develop the property for residential use and said real property is situated
within the Pasco Urban Growth Area as designated by Franklin County; and
WHEREAS, both Big Sky and Tschirky desire to have City of Pasco water service
extended to the developed properties for domestic use; and
WHEREAS, Big Sky and Tschirky are committed to constructing a water system trunk
line extension and distribution lines to the proposed developments as described in Exhibit A, and
then dedicate the waterlines and appurtenances to the City; and
WHEREAS, the City of Pasco possesses the capacity to provide water utility services to
citizens and real properties within its municipal boundaries and its urban growth boundaries; and
WHEREAS, the City of Pasco's long range water plan provides for the systematic
extension of water utilities throughout the City's urban growth area; and
WHEREAS, the parties desire, by this cooperation agreement, to jointly participate in
the cost of the waterline construction that provides benefits to all parties and their respective
properties.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree as follows:
1. BIG SKY OBLIGATIONS. Big Sky shall:
A. In cooperation with Tschirky, provide the complete design of the proposed
water system extension, as described in Exhibit A and Exhibit C, by a Professional
Engineer registered to practice Engineering in the State of Washington. The water
system design shall include pipe and all appurtenances from a connection point with the
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 1
October 10, 2013
City's existing system at the intersection of Burns Road and Broadmoor Boulevard (Road
100), and extending west along Burns Road to the intersection of Kohler Road. The
design shall also include the waterline extensions north along Kohler Road and Dent
Road. The design of the water system extensions shall be in accordance with the latest
City of Pasco requirements and standards including any adopted or referenced state and
federal requirements and standards. The engineering design, construction plans and
specifications shall be submitted to the City for review and/or approval at the 60% and
Final stages of design.
B. From the design, as approved by the City, construct the system extensions
including all valves, hydrants and appurtenances in accordance with applicable City, state
and federal standards and requirements.
C. Be responsible for one - fourth (25 %) the cost of the design of the water
system extension along Burns Road between Broadmoor Boulevard (Road 100) and Dent
Road, one -half (50 %) the cost of design of the water system extension along Burns Road
from Dent Road to Kohler Road, and one -half (50 %) the cost of the design of the water
system extension along Kohler Road, as described in Exhibit B. Big Sky shall assume
Tschirky costs in excess of Tschirky's maximum total limit of $80,000 plus Washington
State Sales Tax.
D. Be responsible for the costs associated with the furnishing of materials
and labor, and construction of the equivalent of an 8 -In. diameter pipeline including
valves, hydrants and associated appurtenances necessary to provide adequate domestic
water service to the proposed development, as follows: along Burns Road between
Broadmoor Boulevard (Road 100) and Dent Road — 50 %; along Burns Road between
Dent Road and Kohler Road — 100 %; and along Kohler Road — 100 %, as described in
Exhibit B. Big Sky shall assume Tschirky costs in excess of Tschirky's maximum total
limit of $80,000 plus Washington State Sales Tax.
E. Shall at its own cost and efforts secure all reviews, approvals and permits
from any and all applicable jurisdictions, and pay all associated fees.
F. Shall execute all deeds, documents, permits, annexation agreements and
checklists necessary for the permitting and conveyance of property and construction of
the system extension described above and the performance of this Agreement.
G. Shall, prior to City acceptance of the waterline improvements
contemplated herein, provide the City certificated surface water rights within the McNary
Pool equal to one -third acre -foot per platted lot contained within the respective
development or a payment to the city in an amount equal to $700 for each platted lot
contained within the respective development, unless mutually agreed otherwise in writing
prior to City acceptance of the improvements.
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 2
October 10, 2013
H. Enter into a Latecomer's Agreement with the City, to provide for future
reimbursement of incurred costs from owners /developers of property who desire to
connect but did not contribute to the costs of the water system extension improvements.
2. TSCHIRKY OBLIGATIONS. Tschirky shall:
A. In cooperation with Big Sky, provide the complete design of the proposed
water system extension by a Professional Engineer registered to practice Engineering in
the State of Washington. The water system design shall include pipe and all
appurtenances from a connection point with the City's existing system at the intersection
of Burns Road and Broadmoor Boulevard (Road 100), and extending west along Burns
Road to the intersection of Kohler Road. The design shall also include the waterline
extensions north along Kohler Road and Dent Road. The design of the water system
extensions shall be in accordance with the latest City of Pasco requirements and
standards including any adopted or referenced state and federal requirements and
standards. The engineering design, construction plans and specifications shall be
submitted to the City for review and/or approval at the 60% and Final stages of design.
B. Be responsible for one - fourth (25 %) the cost of the design of the water
system extension along Burns Road between Broadmoor Boulevard (Road 100) and Dent
Road, and one -half (50 %) the cost of the design of the water system extension along Dent
Road, except as limited by a total maximum expenditure as described in Exhibit B.
C. Be responsible for the costs associated with the furnishing of materials
and labor, and construction of the equivalent of an 8 -In. diameter pipeline including
valves, hydrants and associated appurtenances necessary to provide adequate domestic
water service to the proposed development, as follows: along Burns Road between
Broadmoor Boulevard (Road 100) and Dent Road — 50 %; and along Dent Road — 100 %,
up to the total maximum limit of $80,000 plus Washington State Sales Tax as described
in Exhibit B.
D. Shall at its own cost and efforts secure all reviews, approvals and permits
from any and all applicable jurisdictions, and pay all associated fees.
E. Shall execute all deeds, documents, permits, annexation agreements and
checklists necessary for the permitting and conveyance of property and construction of
the system extension described above and the performance of this Agreement.
F. Enter into a Latecomer's Agreement with the City, to provide for future
reimbursement of incurred costs from owners /developers of property who desire to
connect but did not contribute to the costs of the water system extension improvements.
G. Shall, prior to City acceptance of the waterline improvements
contemplated herein, provide the City certificated surface water rights within the McNary
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 3
October 10, 2013
Pool equal to one -third acre -foot per platted lot contained within the respective
development or a payment to the city in an amount equal to $700 for each platted lot
contained within the respective development, unless mutually agreed otherwise in writing
prior to City acceptance of the improvements.
3. CITY OBLIGATIONS. City shall:
A. Process in its usual course, Big Sky's and Tschirky's applications for plan
review and permits associated with the water system extension project as described above
and in Exhibit A, in a timely manner.
B. Provide project design criteria, and determine the size of pipe, spacing of
isolation valves and hydrants and other appurtenances required to maintain the integrity
of the City's water system.
C. Provide timely reviews of the engineering design, construction plans and
specifications at the 60% and Final submittals.
D. Provide inspection services during the course of construction consistent
with the level of effort utilized on other capital and development projects within the City,
or as may be required to ensure the required quality of the completed work.
E. Be responsible for one -half (50 %) of the costs of design of the water
system extension. The City's share of the design and construction engineering and
inspection costs shall not exceed $20,100.
F. Be responsible for the incremental increase in cost between an 8 -In. pipe
system and the actual pipe size required, as estimated in the construction cost estimates
prepared by Einar Frimodt, IV and provided by Big Sky in March 2013, and as
summarized in Exhibit B. The City's share of the construction costs shall not exceed
$269,688, including Washington State Sales Tax.
G. Be responsible for a share of the total costs associated with this
Agreement, including design engineering, construction, inspection, and incidentals as
described hereinbefore, not to exceed $289,788, except as may be negotiated and agreed
upon by both parties, in writing, by amendment to the Agreement.
H. Upon satisfactory completion of the improvements described above,
accept the dedication of the water system improvements as described in Exhibit A and
Exhibit C, and by Council resolution accept ownership thereof, and maintenance and
operation of the improvements thereafter.
I. Enter into Latecomer's Agreements with Big Sky and Tschirky, to provide
for future reimbursement of incurred costs from owners /developers of property who
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 4
October 10, 2013
desire to connect but did not contribute to the costs of the water system extension
improvements.
J. Construct as a separate capital project, a 16 -inch diameter water trunk
main from the Broadmoor Storage Tank and Pump Station to connect with the system
extension being constructed under this agreement.
4. TERM. This Agreement shall be effective commencing on the day of
October, 2013, and all improvements, conveyances and obligations of the parties shall be
complete on or before July 1, 2014. The Agreement shall terminate on August 1, 2014, or with
the completion and acceptance of the water system extension improvements, whichever is
sooner.
5. AUTHORITY TO APPROVE AGREEMENT. The parties represent and
warrant that all steps necessary for the approval of this Agreement have been completed by:
A. Big Sky Developers, LLC by its Managing Member.
B. Ted Tschirky, Individual Property Owner
C. City of Pasco by the Pasco City Council.
The officers signing below are authorized to do so and that the execution of this Water
System Extension Agreement is valid and binding for all purposes.
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 parry being awarded its reasonable attorney fees and
costs against the other.
7. GENERAL PROVISIONS.
A. This Water System Extension 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. This Water System Extension Agreement shall be binding on the parties,
and their heirs, successors and assigns.
Water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 5
October 10, 2013
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
CITY OF PASCO
Gary Crutchfield
City Manager
day of
BIG SKY DEVELOPERS, LLC
Dave Greeno
Managing Member
0091
TED TSCHIRKY
Ted Tschirky
Property Owner
water System Extension Agreement — Big Sky Developers, LLC & Ted Tschirky Page 6
October 10, 2013
EXHIBIT A
CITY OF PASCO WATER SYSTEM EXTENSION IN NORTHWEST CITY URBAN GROWTH
AREA
DESCRIPTION OF PROJECT
Introduction: For the past several months, Mr. Dave Greeno of Big Sky Developers, LLC and Mr. Ted
Tschrky, a private landowner, have been discussing development plans, with the City, for parcels of land
on Kohler Road and Dent Road, north of Burns Road, west of the City. Mr. Greeno and Mr. Tschrky
propose to develop the land for large lot single - family residential purposes. Both have approached the
City of Pasco and requested that the City provide domestic water service for the developments. At a
meeting on February 22, 2013, Mr. Greeno presented a cost estimate for the waterline extension along
with a proposal of cost sharing percentages. Since that time, the City, Mr. Greeno and Mr. Tschrky have
been in discussions with regard to the feasibility of providing City water system extension improvements
to the sites and the potential cost sharing options. Both developments are located within the City of Pasco
Urban Growth Area, although outside the Pasco City Limits.
Project Description: The proposed project will extend City of Pasco domestic water service from the
Broadmoor Tank and Pump Station (located on Broadmoor Boulevard, near Nottingham Drive) north to
Burns Road, then west along Burns Road to the intersection of Kohler Road. In addition, service will be
extended north approximately 1,000 feet along both Kohler Road and Dent Road.
For the purposes of planning and estimating the project elements and costs, the project has been divided
into five (5) segments, as follows:
• Segment A — 16 -inch diameter water system trunk line extending approximately 5,280 LF along
Burns Road from Broadmoor Boulevard to Dent Road;
• Segment B — 12 -inch diameter watermain along Dent Road for a distance of approximately 1,000
LF north of Burns Road;
• Segment C — 16 -inch diameter water system trunk line extending approximately 2,640 LF along
Burns Road between Dent Road and Kohler Road;
• Segment D — 12 -inch diameter watermain along Kohler Road extending north of Bums Road
approximately 960 LF;
• Segment E — Connection to the Broadmoor Tank and Pump Station and extension of
approximately 660 LF of 16 -inch diameter water system trunk line along Broadmoor Boulevard
to Burns Road.
The water system extension will include necessary inline isolation valves, fittings, fire hydrants and other
appurtenances as determined by the City of Pasco. Design and construction will be in accordance with all
current applicable City of Pasco standards and requirements and all applicable state and federal standards
and requirements as may be adopted or referenced by the City. The water system trunk line alignment
Exhibit A — Big Sky Developers, LLC & Ted Tschrky Page 1
October 4, 2013
will be located as determined by the City and in coordination with Franklin County. Franklin County
currently owns the right -of -way along Bums Road, Kohler Road and Dent Road.
General Cost Sharing Proposal: All parties have negotiated a cost sharing arrangement that generally
provides for the following:
• Desien — The City of Pasco will share 50% of the cost of design, topographical survey,
preparation of construction documents, construction survey, and City construction inspection
efforts for the work associated with the water system extensions as defined in Segments A
through D, above. Big Sky Developers, LLC and Ted Tschrky will be responsible for the other
50% of the costs in proportion to the estimated footage of pipe necessary to serve their respective
developments.
• Construction — Big Sky Developers, LLC and Ted Tschrky will be responsible for the entire cost
of the equivalent of an 8 -inch pipe system for Segments A through D, as defined above. The City
of Pasco will be responsible for the cost differential to provide the large pipe system.
• Segment E — The City of Pasco will construct this segment as a separate capital project because
of its broader benefit to the community, and be responsible for the entire cost of this work.
• Development specific costs — Each developer will be responsible for the costs associated with
their individual developments. The City shall bear no responsibility for these costs.
Exhibit A — Big Sky Developers, LLC & Ted Tschrky Page 2
October 4, 2013
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