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HomeMy WebLinkAbout2014.10.13 Council Workshop PacketAGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 p.m. October 13, 2014 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Downtown Pasco Development Authority (DPDA) Funding Agreement: I. Agenda Report from Rick White, Community & Economic Development Director dated October 8, 2014. 2. DPDA Funding Agreement — Existing Funding Agreement from 2011. 3. DPDA Funding Agreement — Request for 2014. (b) Process Water Reuse Facility (PWRF) Leak Detection: I. Agenda Report from Ahmad Qayoumi, Public Works Director dated October 9, 2014. 2. PWRF Leak Detection — Professional Services Agreement Summary Sheet. 3. PWRF Leak Detection — Vicinity Map. 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT REMINDERS: 11:45 a.m., Monday, October 13, Pasco Red Lion — Pasco Chamber of Commerce Membership Luncheon. (Election Forum, Candidates for: Franklin County Commissioner; Franklin County Clerk; and Franklin County Sheriff) 2. 6:00 p.m., Monday, October 13, Conference Room #1 — Old Fire Pension Board Meeting. ( COUNCILMEMBER REBECCA FRANCIK, Rep.; SAUL MARTINEZ, Alt.) 3. 4:00 p.m., Tuesday, October 14, Conference Room #1 — Lodging Tax Advisory Committee Meeting. ( COUNCILMEMBER MIKE GARRISON) 4. 5:30 p.m., Wednesday, October 15 — Benton, Franklin & Walla Walla Counties Good Roads & Transportation Association Meeting. ( COUNCILMEMBER BOB HOFFMANN, Rep.; REBECCA FRANCIK, Alt.) 5. 3:30 p.m., Thursday, October 16, FCEM Office — Franklin County Emergency Management Board Meeting. (MAYOR MATT WATKINS, Rep.; COUNCILMEMBER TOM LARSEN, Alt.) 6. 11:30 a.m., Friday, October 17 — Benton - Franklin Council of Governments. Board Meeting. ( COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK, Alt.) AGENDA REPORT FOR: City Council October 8, 2014 TO: Dave Zabell, City Manager Workshop Mtg.: 10/13/14 FROM: Rick White, Community & Economic Development Director SUBJECT: Downtown Pasco Development Authority (DPDA) Funding Agreement I. REFERENCE(S): 1. DPDA Funding Agreement - Existing Funding Agreement from 2011 2. DPDA Funding Agreement - Request for 2014 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 10/13: DISCUSSION III. FISCAL IMPACT: An amount to be determined from the Economic Development and Infrastructure Fund IV. HISTORY AND FACTS BRIEF: A. City Council formed a Public Development Authority in December of 2010 to undertake revitalization of the Downtown area, provide management of the Pasco Specialty Kitchen and Farmer's Market and promote utilization of the fagade improvement program that is funded through the Community Development Block Grant allocation. B. The DPDA was licensed in Washington State as a non - profit corporation in May of 2011 and a full Board was appointed in July of 2011. The DPDA also received its 501(c)(3) tax status in 2012. C. In creating the Downtown Pasco Development Authority (DPDA), City Council acknowledged that the Authority would have operational expenses that exceed revenues and through a funding agreement with the DPDA, has obligated an annual amount of $60,000 for a three year period to supplement their revitalization efforts. The Economic Development and Infrastructure Fund is the source. The funding agreement with the DPDA is in effect from January 2012 through December of this year. D. The City and the DPDA have also entered into lease agreements for the Pasco Specialty Kitchen (PSK), Pasco Farmers Market (PFM) and Downtown Post Office properties. Those lease agreements are valid until December 31, 2016. V. DISCUSSION A. Since 2012, the DPDA has organized and developed operating procedures, hired an initial and a replacement executive director, reinitiated public events in Downtown Pasco (Cinco de Mayo and the Fiery Foods Festival), undertaken management of the PSK and PFM, conducted several business education classes and Downtown clean- up events, organized and implemented a Peanuts Park refurbishment and (with City financial assistance) completed a 5 year Strategic Work Plan including website revisions and "branding ". B. Major tasks for 2015 and 2016 include obtaining Main Street Certification (which will allow the opportunity for State B &O and State Utility Tax credit for donors — including the City), full implementation of the "Passport to Pasco Rewards Program," establishment of a scholarship grant program consistent with the DPDA's 501(c)(3) status, business outreach efforts including a marketing/fundraising program and analysis of the feasibility of a "year round" Farmers Market. 4(a) C. The DPDA has requested that additional City funding be made available for several important personnel requests and to fully implement the Strategic Work Plan. This would result in an increase in City funding levels for the next two years. The additional personnel sought by the DPDA would enable them to reduce the amount of the City subsidy after that. Provision of the additional funding would be contingent on the DPDA receiving Main Street accreditation and includes the possibility of the City receiving a credit for the subsidy against the amount the City pays for the State Utility Tax. D. Once accredited by Washington State as a Main Street Program, the DPDA will be eligible to receive donations with the donor receiving a 75% credit against applicable State Utility Taxes obligations (or against B &O taxes). As an example, if the City's contribution to the DPDA from the Economic Development and Infrastructure Fund is $90,000 in 2015, the City will be able to realize a credit to the amount that would ordinarily be paid for State Utility Tax in the amount of $67,500 in 2016 ($90,000 contribution X 75% credit = $67,500). If the. City contribution is $120,000 to the DPDA in 2016, the City would be able to realize a credit of $90,000 in 2017. This example would also apply to privatelbusiness donors with applicable B &O taxes. E. Since the lease agreements for the PSK, PFM and Post Office are valid until the end of 2016, staff requests Council's favorable consideration of extension of the funding agreement for the DPDA through the end of 2016. This will result in a five year funding commitment and the ability to more accurately assess the progress in Downtown revitalization at the conclusion of calendar year 2016. Staff also requests Council discussion and direction on the amount of funding for Downtown Revitalization efforts through the DPDA. DOWNTOWN PASCO DEVELOPMENT AUTHORITY FUNDING AGREEMENT THIS AGREEMENT is made and entered into this _,MMlday of December 2011, by and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as "City," and the Downtown Pasco Development Authority, a non -profit Washington Corporation, hereinafter referred to as "DPDA." WHEREAS, the City Council desires to foster revitalization of the downtown business area and created the Downtown Pasco Development Authority (DPDA) in December 2010 under Ordinance No. 3985, with the expectation of providing a three -year funding commitment to permit the new agency to establish operations and demonstrate its ability to fulfill the revitalization goals enunciated in Ordinance No. 3985 and the DPDA Charter; and WHEREAS, DPDA has spent calendar year 2011 to organize and has received a certificate of incorporation from the State of Washington as a non -profit corporation and expects to incur operational expenditures in calendar year 2012 as well as overseeing operation of the Pasco Farmers Market and Pasco Commercial Kitchen; NOW THEREFORE, IN CONSIDERATION of the mutual covenants contained herein and other valuable consideration, it is agreed as follows: Section 1: DPDA Responsibilities The DPDA shall organize and conduct its activities and efforts that further the purpose of the DPDA as identified in Pasco Ordinance 3985 and Article IV of its Charter to include but not be limited to: • Review of City plans and policies. The DPDA shall review existing and evolving City land use and capital improvement plans and policies affecting the Downtown Area and advise the city of appropriate considerations. • Facade Improvement Program. The DPDA shall provide information, applications and professional assistance to Downtown Area property owners wishing to participate in an approved and funded Community Development Block Grant fagade program. • Promotional Events, The DPDA should conduct or implement promotional or special events that contribute to the success of the Downtown Area or otherwise advance the goals of the DPDA. • Financing Strategy. In collaboration with City staff and/or other professionals, the DPDA will develop a comprehensive inventory of public and private capital and development financing tools and incentives that may be available to foster and support its revitalization efforts. These should include tax credits or other incentives and identification of infrastructure and other public capital investments that may be necessary to support private redevelopment projects. • Marketing. The DPDA shall develop a strategy to identify and promote economic vitality of the Downtown Area including the opportunities associated with the Farmer's Market and Specialty Kitchen. Such a marketing strategy shall include but not be limited to web based strategies, information and promotional brochures and videos. DPDA Funding Agreement - 1 a3 t,. , • Farmer's Market and Pasco Specialty Kitchen The DPDA shall optimize the opportunities associated with the Farmer's Market and Specialty Kitchen to increase economic activity and promote recognition of the Downtown. Operation of these facilities must be in accordance with the associated lease agreement. Reports: A formal presentation to the City Council by the DPDA board shall be given on or before March 1 each year. The DPDA shall deliver quarterly written status reports to the Pasco City Manager detailing the activities, accomplishments and financial status of the DPDA. Section 2: City Responsibilities The City of Pasco will remit to DPDA or its designated bank $5,000 by the 10's day of each month. Section 3: Term This agreement shall be effective January 1, 2012 and shall expire on December 31, 2014; provided, however, either party may terminate the agreement with at least 180 days written notice delivered to the President of the DPDA or the Pasco City Manager. Section 4: General Provisions For the purpose of this Agreement, time is of the essence. Failure of the DPDA to either provide the accounting or remit disallowed funds as required herein shall constitute a breach of this agreement. The remedies available to the City shall include but not be limited to, return of all funds delivered to the DPDA and denial of the right of the DPDA to apply for any future funding. In the event of a dispute regarding the enforcement, breach, default or interpretation of this Agreement, the parties shall first meet in a good faith effort to resolve such dispute. In the event the dispute cannot be resolved by agreement of the parties, said dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules (MAR); venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall apply; and the prevailing party shall be entitled to its reasonable attorney fees and costs. IN WITNES WHEREOF, the parties hereto have caused this agreement to be executed this 2') . day of &b r 2011. DPDA Funding Agreement - 2 DOWNTOWN PASCO DEVELOPMENT AUTHORITY Michael Miller, President downtown pasco Rick White Director of Community and Economic Development 525 N V Avenue Pasco, WA 99301 RE: Downtown Pasco Development Authority Funding Request Mr. White, As the time has come for the Downtown Pasco Development Authority (DPDA) to renew itsfunding agreement this letter is to inform you of our request for $90,000 in 2015 and $120,000 in 2016 in contributions from the City of Pasco. Since its inception in 2012 the DPDA has successfully obtained a 501c3 Non- Profit Status, partnered with major community organizations to benefit the Downtown Pasco business community, re- launched its brand complete with social media presence and completed a 5 year strategic work plan that was approved by the DPDA Board of Directors and the City of Pasco's City Council. Now it is time to execute that Strategic Work Plan. As we continue to push forward on our Main Street Accreditation, a goal for the City of Pasco and its Council, and execute our work plan we would like to become self- sustaining over the next 3 to 5 years. However, to do that we need to fully develop a team that can raise the funds to be able to secure long term partnerships that help contribute to our goals. Our plan is to hire a Full Time Director of Sales and Marketing so that we can contribute efforts to not only securing financial contributions, but also increase revenue streams at the Pasco Farmer's Market and Pasco Specialty Kitchen. With our Main Street Accreditation and the tax credit that is associated with financial contributions we feel this is obtainable. We have completed an extensive three year plan that outline's the City of Pasco's contributions and the benefit that would come from the city's contribution to their public utility tax. In addition we have included other avenues we are looking to draw contributions from which would lessen the burden from the city s funding sources. Some of these included CDBG Funds from Richland and Kennewick as well as Lodging Tax. With the increased contributions the DPDA will be able to fully execute our work plan, obtain our own funding, and focus on the continued success we have already have. With that we would like to ability to present to City Council our proposed budget, our initial sales and marketing plan, and what the end result would be. Thank you for taking the time to consider this proposal. Sincerely, Michael Goins Michael Miller Executive Director DPDA Chair AGENDA REPORT NO. 31 FOR: City Council TO: Dave Zabell, City Manager FROM: Ahmad Qayoumi, Public Works Director SUBJECT: Process Water Reuse Facility (PWRF) Leak Detection I. REFERENCE(S): October 09, 2014 Workshop Mtg.: 10/13/2014 Regular Mtg.: 10/20/2014 1. PWRF Leak Detection - Professional Services Agreement Summary Sheet 2. PWRF Leak Detection — Vicinity Map II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 10113: Discussion 10/20: MOTION: I move to approve the Professional Services Agreement with Leak Location Services, Inc., authorizing professional leak detection services with respect to the PWRF project in the amount of $30,020, and further, authorize the City Manager to sign the agreement. III. FISCAL IMPACT: PWRF Funds $32,020 IV. HISTORY AND FACTS BRIEF: A) As a condition of State Waste Discharge Permit Number ST 5369, section S4.E, the results of an electronic leak detection inspection of the equalization and winter storage pond must be submitted to Ecology no later than February 1, 2014, and must include a description of all holes, tears, etc., and the repairs that were made. B) With the City implementing upgrades at the Process Water Reuse Facility (PWRF) including construction of new lined storage ponds and relining of the equalization pond, the City requested an extension of the February 1, 2014 deadline for the electronic leak detection report until the work was completed. The Washington State Department of Ecology ( WSDOE) approved the extension request for submitting the report by November 2, 2014. C) Due to the liner in the EQ pond being tom and having to be replaced, the industrial wastewater entering the PWRF in the winter was placed in the 115 million gallon (MG) winter storage pond without being first routed through the EQ pond to settle out solids in the wastewater. As a result, once the 115 MG pond was drained in the spring the pond then had to be cleaned to remove an excessive amount of solids remaining in the pond. The 115 MG pond is still actively being cleaned and the City has delayed having a leak detection survey performed until the cleaning of the 115 MG pond has been completed. In doing so, the City will avoid having to pay a second mobilization fee to have the company return to inspect the additional pond. The City has discussed this with WSDOE and they have verbally agreed to an additional extension. The City has provided a request for the additional extension on October 8, 2014. V. DISCUSSION: D) Staff recommends approval of the Professional Services Agreement in the amount of $30,020 with Leak Location Services, LLC. to perform a leak location survey on the ponds at the PWRF the first week of November 2014. 4(b) Professional Services Agreement (Summary Sheet) Project: Process Water Reuse Facility Leak Detection Consultant: Leak Location Services, Inc. Address:_ 16124 University Oak San Antonio Texas 78249 Scope of Services:_ Conduct a geomembrane leak location survey for Four Ponds at the Process Water Reuse Facility. Term: 40 days Completion Date: 11/30/2014 Payments to Consultant: ❑ Hourly Rate: ❑x Fixed Sum of-.$ 30,020 ❑. Other: Insurance to be Provided: 1. Commercial General Liability: ❑ $1,000,000 each occurrence; ❑ $2,000,000 general aggregate; or ® $1,000,000 each occurrence; and $ 2,000,000 general aggregate 2. Professional Liability: IN $1,000,000 per claim; ❑ $1,000,000 policy aggregate limit; or ❑ $ per claim; and $ per policy aggregate limit Other Information: a v Z N N 0 Y N C O a Y_ �u m LL N U/ •. 41 Y (0 3 N N d U CL`