HomeMy WebLinkAbout2014.11.17 Council Meeting PacketAGENDA
PASCO CITY COUNCIL
Regular Meeting 7:00 p.m. November 17, 2014
I. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance
3. CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine by
the City Council and will be enacted by roll call vote as one motion (in the form listed below).
There will be no separate discussion of these items. If further discussion is desired by
Councilmembers or the public, the item may be removed from the Consent Agenda to the Regular
Agenda and considered separately.
(a) Approval of Minutes:
1. Minutes of the Pasco City Council Meeting dated November 3, 2014.
(b) Bills and Communications: (A detailed listing of claims is available for review in the
Finance Manager's office.)
1. To approve claims in the total amount of $1,988,325.44.
2. To approve bad debt write-offs for utility billing, ambulance, cemetery, general
accounts, miscellaneous accounts, and Municipal Court (non -criminal, criminal, and
parking) accounts receivable in the total amount of $265,707.21 and, of that amount,
authorize $174,343.32 be turned over for collection.
(c) Settlement Agreement Charter Communications:
1. Agenda Report from Stan Strebel, Deputy City Manager dated November 4, 2014.
2. Settlement Agreement Charter Communications — Proposed Agreement.
To approve the Settlement and Release Agreement with Charter Communications and,
further, authorize the City Manager to execute the Agreement.
(d) I Approval of Utility Easement for Century Link (MF #ESMT2014-005):
1. Agenda Report from Dave McDonald, City Planner dated November 10, 2014.
2. Utility Easement, Century Link — Overview Map.
3. Utility Easement, Century Link — Vicinity Map.
4. Utility Easement, Century Link — Easement.
To authorize the Mayor to execute the easement granting Century Link an easement across
a portion of the Parks Division shop property adjacent to the City View Cemetery.
(e) I Approval of Final Plat, First Place, Phase 5 (MF #FP2014-004):
1. Agenda Report from Dave McDonald, City Planner dated November 10, 2014.
2. First Place Phase 5 — Overview Map.
3. First Place Phase 5 — Vicinity Map.
4. First Place Phase 5 — Final Plat.
To approve the final plat for First Place, Phase 5.
M I Approval of Final Plat, First Place, Phase 7 (MF #FP2014-005):
1. Agenda Report from Dave McDonald, City Planner dated November 10, 2014.
2. First Place Phase 7 — Overview Map.
3. First Place Phase 7 — Vicinity Map.
4. First Place Phase 7 — Final Plat.
To approve the final plat for First Place, Phase 7.
(g) Resolution No. 3600, a Resolution declaring the City's legislative priorities for the 2015
session of the Washington State Legislature.
I. Agenda Report from Dave Zabell, City Manager dated November 12, 2014.
2. 2015 Legislative Priorities — Priorities List.
3. 2015 Legislative Priorities — Proposed Resolution.
To approve Resolution No. 3600, declaring the City's Legislative Priorities for the 2015
session of the Washington State Legislature.
(RC) MOTION: I move to approve the Consent Agenda as read.
Regular Meeting 2 November 17 2014
4. PROCLAMATIONS AND ACKNOWLEDGMENTS:
(a) "Small Business Saturday" Proclamation. Council to present proclamation to Lori
Mattson, President & CEO, Tri -Cities Regional Chamber of Commerce.
(b)
(c)
5. VISITORS - OTHER THAN AGENDA ITEMS:
(a)
(b)
(c)
6. REPORTS FROM COMMITTEES AND/OR OFFICERS:
(a) Verbal Reports from Councilmembers
(b) Rick Terway, Administrative & Community Services Director: General Fund
Operating Statement through October 2014.
(c)
7. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO:
(a) 12015 Property Tax Levy — Ad Valorem Tax Levy.
1. Agenda Report from Rick Terway, Administrative & Community Services Director
dated November 5, 2014.
2. 2015 Property Tax Levy — Assessed Value/Tax Levy Rate History Chart.
3. 2015 Property Tax Levy — Summary of Options.
4. 2015 Property Tax Levy — 2015 Ad Valorem Tax Ordinance — Option 1.
5. 2015 Property Tax Levy — 2015 Ad Valorem Tax Ordinance — Option 2.
6. 2015 Property Tax Levy — 2015 Preserving Property Tax Levy Capacity Ordinance —
Option 2.
CONDUCT A PUBLIC HEARING
Ordinance No. , an Ordinance providing for the 2015 Ad Valorem Tax Levy, and a
levy for the 1999 Unlimited Tax General Obligation Bonds in the City of Pasco in
accordance with state law.
MOTION: I move to adopt Ordinance No. providing for the 2015 Ad Valorem
Tax Levy, and a levy for the 1999 Unlimited Tax General Obligation Bonds and, further,
authorize publication by summary only.
8. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS:
(a) Resolution No. , a Resolution of the City of Pasco approving a Transfer Agreement
governing the terms related to transfer of the City's cable television system franchise from
Franchisee Falcon Video Communications, L.P. to Comcast Communications and
authorizing the City Manager to execute the Agreement.
1. Agenda Report from Stan Strebel, Deputy City Manager dated November 3, 2014.
2. Cable Franchise Transfer— Proposed Resolution.
3. Cable Franchise Transfer — Transfer Agreement.
4. Cable Franchise Transfer — Comcast Franchise Guaranty.
MOTION: I move to approve Resolution No. _, approving a Transfer Agreement
governing the terms related to transfer of the City's cable television system franchise from
Franchisee Falcon Video Communications, L.P. to Comcast Communications and, finther,
authorize the City Manager to execute the Agreement.
9. UNFINISHED BUSINESS:
(None)
10. NEW BUSINESS:
(a) I Downtown Pasco Development Authority (RPDA) Funding Agreement:
L Agenda Report from Rick White, Community & Economic Development Director
dated November 12, 2014.
2. DPDA Funding Agreement — Proposed Funding Agreement for 2015-2016.
3. DPDA Funding Agreement — Request for 2014.
MOTION: I move to approve the 2015-2016 Funding Agreement with the DPDA and,
fiuther, authorize the City Manager to execute the Agreement.
Regular Meeting 3 November 17 2014
11. MISCELLANEOUS DISCUSSION:
(a)
(b)
(c)
12. EXECUTIVE SESSION:
(a)
(b)
(c)
13. ADJOURNMENT.
rRoll Call Vote Required
Item not previously discussed
Quasi -Judicial Matter
MF# "Master File #......
REMINDERS:
1. 6:00 p.m., Monday, November 17, City Hall Conference Room #1 — LEOFF Disability Board
Meeting. (MAYOR MATT WATKINS and COUNCILMEMBER REBECCA FRANCIK)
2. 5:00 p.m., Tuesday, November 18, TRAC — TRAC Advisory Board Meeting. (MAYOR MATT
WATKINS and COUNCILMEMBER AL YENNED
3. 4:00 p.m., Thursday, November 20, 7130 W. Grandridge Blvd — TRIDEC Board Meeting.
(COUNCILMEMBER MIKE GARRISON, Rep.; TOM LARSEN, Alt.)
4. 11:30 a.m., Friday, November 21 — Benton -Franklin Council of Governments Board Meeting.
(COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK, Alt.)
REGULAR MEETING
CALL TO ORDER:
MINUTES
PASCO CITY COUNCIL NOVEMBER 3, 2014
The meeting was called to order at 7:00 p.m. by Matt Watkins, Mayor.
ROLL CALL:
Councilmembers present: Rebecca Francik, Mike Garrison, Robert Hoffmann, Tom
Larsen, Saul Martinez and Matt Watkins. Excused: Al Yenney.
Staff present: Dave Zabell, City Manager; Stan Strebel, Deputy City Manager; Leland
Kerr, City Attorney; Richard Terway, Administrative & Community Services Director;
Rick White, Community & Economic Development Director; Ahmad Qayoumi, Public
Works Director; Bob Metzger, Police Chief and Dunyele Mason, Financial Services
Manager.
The meeting was opened with the Pledge of Allegiance.
CONSENT AGENDA:
Approval of Minutes:
Minutes of the Pasco City Council Meeting dated October 20, 2014.
Bills and Communications
To approve claims in the total amount of $3,184,024.59 ($1,612,353.61 in Check Nos.
200814-201025; $861,195.52 in Electronic Transfer Nos. 803011-803102, 803105-
803129, 803132-803194, 803196-803217, 803220-803308, 803310-803403; $46,041.36
in Check Nos. 47464-47506; 900000080; $536,481.06 in Electronic Transfer Nos.
30074493-30074968; $2,000.00 in Electronic Transfer Nos. 93; $125,953.04 in
Electronic Transfer Nos. 88-90).
Tourism Promotion Area:
To approve the 2015 Marketing Plan and Operating Budget for the Tourism Promotion
Area in the total amount of $1,130,000.
Lodging Tax Allocations:
To approve the allocation of 2015 Lodging Tax receipts as recommended by the Lodging
Tax Advisory Committee minutes of October 14, 2104.
Waiver of Sewer Utility Service Requirement (MF#USW2014-003):
To conditionally approve the sewer utility service waiver at 1006 Road 70 and, further,
authorize the City Manager to execute the waiver agreement.
Columbia Raw Water Supply Professional Services Agreement Amendment No. 2 —
Murray, Smith and Associates:
To approve the Amended Professional Services Agreement with Murray, Smith and
Associates, Inc., for the Columbia Water Supply, not to exceed $670,509.00 and, further,
authorize the City Manager to execute the agreement.
Oregon Avenue Corridor Amendment No. 2 (PSA CH2MHill):
To approve Amendment No. 2 to Professional Services Agreement with CH2MHi11,
continuing professional services with respect to the Oregon Avenue Corridor, in the
amount of $36,663 and, further, authorize the City Manager to execute the agreement.
3(a).1
MINUTES
REGULAR MEETING PASCO CITY COUNCIL NOVEMBER 3, 2014
Oregon Avenue Corridor PSA Oversize Truck Turning Movements (PSA
CH2MHM):
To approve the Professional Services Agreement with CH2MHill, continuing
professional services with respect to the Oregon Avenue Corridor, in the amount of
$13,025 and, further, authorize the City Manager to execute the agreement.
Road 68 Corridor Improvements Amendment No. 1(PSA HD.I):
To approve Amendment No. 1 to Professional Services Agreement with HDJ, continuing
professional services with respect to the Road 68 Corridor Improvements, in the amount
of $31,461.30 and, further, authorize the City Manager to execute the agreement.
Resolution No. 3596, a Resolution approving the 2015-2019 Tri -Cities Consolidated
Plan for Community Development Block Grant (CDBG) and HOME Investment
Partnerships (HOME) Programs.
To approve Resolution No. 3596, approving the 2015-2019 Tri -Cities Consolidated Plan.
MOTION: Ms. Francik moved to approve the Consent Agenda as read. Mr. Garrison
seconded. Motion carried by unanimous Roll Call vote.
PROCLAMATIONS AND ACKNOWLEDGMENTS:
Mayor Watkins presented Dunyele Mason, Financial Services Manager, with the
Government Finance Officers Association Certificate of Achievement.
REPORTS FROM COMMITTEES AND/OR OFFICERS:
Mr. Garrison attended the Hanford Communities Governing Board meeting.
Mayor Watkins reported on a meeting with the 16th District State Legislators.
Mr. Martinez reminded everyone to vote on Tuesday.
HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO:
Street Vacation (MF VAC2014-007) Portion of Road 92 in Coles Estates.
Mr. White explained the details of the proposed ordinance.
MAYOR WATKINS DECLARED THE PUBLIC HEARING OPEN TO CONSIDER THE PROPOSED
VACATION.
FOLLOWING THREE CALLS FOR COMMENTS, EITHER FOR OR AGAINST, AND THERE BEING
NONE, MAYOR WATKINS DECLARED THE PUBLIC HEARING CLOSED.
Ordinance No. 4181, an Ordinance vacating a portion of Road 92.
MOTION: Ms. Francik moved to adopt Ordinance No. 4181, vacating Road 92 north of
Majestia Lane and, further, authorize publication by summary only. Mr. Garrison
seconded. Motion carried unanimously. Mr. Garrison seconded. Motion carried
unanimously.
ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS:
Ordinance No. 4182, an Ordinance of the City of Pasco, Washington, amending the
zoning classification of property located in the 9600 Block of Sandifur Parkway
from C-1 (Retail Business) to CR (Regional Commercial).
MINUTES
REGULAR MEETING PASCO CITY COUNCIL NOVEMBER 3, 2014
Mr. White explained the details of the proposed ordinance.
MOTION: Ms. Francik moved to adopt Ordinance No. 4182, rezoning property located
in the 9600 Block of Sandifur Parkway from C-1 to CR and, further, authorize
publication by summary only. Mr. Martinez seconded. Motion carried unanimously.
Resolution No. 3597, a Resolution accepting a notice of intent (ten percent petition)
to commence annexation proceedings, providing a determination on the territory to
be annexed and whether simultaneous zoning and the assumption of bonded
indebtedness will be required.
Mr. White explained the details of the proposed resolution.
MOTION: Ms. Francik moved to approve Resolution No. 3597, accepting a Notice of
Intent to commence annexation proceedings for the Sharma Annexation Area and
providing a determination on the boundary, zoning and indebtedness related thereto. Mr.
Garrison seconded. Motion carried unanimously.
Resolution No. 3598, a Resolution approving a Preliminary Replat for a portion of
the Whitehouse Addition.
Council and staff discussed the details of the proposed resolution.
MOTION: Ms. Francik moved to approve Resolution No. 3598, approving the
Preliminary Replat of a portion of the Whitehouse Addition. Mr. Martinez seconded.
Motion carried unanimously.
Resolution No. 3599, a Resolution accepting the Planning Commission's
recommendation and approving a Special Permit for the location of an automobile
and off-road vehicle sales business at 1225 S. 10th Avenue.
Mr. White explained the details of the proposed resolution.
MOTION: Ms. Francik moved to approve Resolution No. 3599, approving the Special
Permit for the location of a vehicular sales business at 1225 S. 10th Avenue as
recommended by the Planning Commission. Mr. Garrison seconded. Motion carried
unanimously.
NEW BUSINESS:
2015 Legislative Priorities:
Mr. Zabel] introduced Ms. Briahna Taylor and Mr. Alex Soldano, representing Gordon,
Thomas, Honeywell Governmental Affairs, who explained what to expect in the 2015
legislative session and presented the draft 2015 Legislative Priorities List.
Council concurred to add the 2015 Legislative Priorities List to the November 17th
regular meeting agenda.
MISCELLANEOUS DISCUSSION:
Mr. Zabell noted the draft 2015 Preliminary Budgets will be available later this week and
discussed at the November 10th workshop meeting beginning at 6 p.m.
EXECUTIVE SESSION:
Council adjourned to Executive Session at 7:57 p.m. for approximately 30 minutes to
discuss litigation or potential litigation with the City Manager, Deputy City Manager and
the City Attorney.
MINUTES
REGULAR MEETING PASCO CITY COUNCIL NOVEMBER 3, 2014
Mayor Watkins returned to the Council Chambers at 8:27 p.m. and noted the Executive
Session will continue an additional 10 minutes.
Mayor Watkins returned to Council Chambers at 8:37 p.m. and noted the Executive
Session will continue an additional 10 minutes.
Mayor Watkins called the meeting back to order at 8:48 p.m.
ADJOURNMENT:
There being no further business, the meeting was adjourned at 8:48 p.m.
APPROVED: ATTEST:
Matt Watkins, Mayor Debra L. Clark, City Clerk
PASSED and APPROVED this 17th day of November, 2014.
CITY OF PASCO
Council Meeting of: November 17, 2014
Accounts Payable Approved
The City Council
City of Pasco, Franklin County, Washington
We, the undersigned, do hereby certify under penalty of perjury that the materials have been furnished, the
services rendered or the labor performed as described herein and that the claim is a just due and unpaid
obligation against the city and that we are authorized to authenticate and certify to sal clairl e m//QA`
J al
Dave Zab&64jtyMVager o, Rick Terway, Aly Director
We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this
17 day of November, 2014 that the merchandise or services hereinafter specified have been received and are approved for payment:
Claims Bank
Payroll Bank Gen'I Bank Electronic Bank Combined
Check Numbers 201026-201227
47507-47554
STREET OVERLAY
900000082
Total Check Amount $741,492.93
$46,598.73 Total Checks $ 788,091.66
Electronic Transfer Numbers 803516:803535
3007496930075450 94-98 92;94
803538-803539
55.00
803593
2,212.11
Total EFT Amount $157,050.20
$570,125.26 $180,249.46 $292,808.86 Total EFTs $ 1,200,233.78
CEMETERY
Grand Total $ 1,988,325.44
ATHLETIC PROGRAMS
Councilmember
Councilmember
SUMMARY OF CLAIMS BY FUND:
GENERAL FUND
153,595.75
STREET
2,526.49
ARTERIAL STREET
0.00
STREET OVERLAY
0.00
C. D. BLOCK GRANT
10.09
HOME CONSORTIUM GRANT
10,000.00
BLVD MAINTENANCE
55.00
KING COMMUNITY CENTER
2,212.11
AMBULANCE SERVICE
17,665.81
CEMETERY
2,077.52
ATHLETIC PROGRAMS
1,683.32
GOLF COURSE
42,403.75
SENIOR CENTER OPERATING
1,503.82
MULTI MODAL FACILITY
33.97
SCHOOL IMPACT FEES
93,344.00
SPECIAL ASSESSMNT LODGING
22,221.10
LITTER CONTROL
1,373.36
REVOLVING ABATEMENT
1,040.00
TRAC DEVELOPMENT & OPERATING
0.00
PARKS
0.00
ECONOMIC DEVELOPMENT
1,536.04
GENERAL CAP PROJ CONSTRUCTION
228,908.62
WATER/SEWER
304,279.06
EQUIPMENT RENTAL - OPERATING GOVERNMENTAL
21,587.30
EQUIPMENT RENTAL - OPERATING BUSINESS
5,481.55
EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL
1,169.81
EQUIPMENT RENTAL - REPLACEMENT BUSINESS
0.00
MEDICAL/DENTAL INSURANCE
290,586.99
FLEX
2,221.87
PAYROLL CLEARING
780,808.11
GRAND TOTAL ALL FUNDS:
$ 1,988,325.44
3(b).1
AGENDA REPORT
FOR: City Council DATE: November 12, 2014
TO: Dave Zabell, City Manage REGULAR: November 17, 2014
FROM: Rick Terway, Administrative & Community S ces Director
SUBJECT: BAD DEBT WRITE-OFF'S/COLLECTION.
I. REFERENCE (S):
II.
In.
Write-off and collection lists are on file in the Finance Department.
ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
MOTION: I move to approve bad debt write-offs for utility billing, ambulance, cemetery, general
accounts, miscellaneous accounts, and Municipal Court (non -criminal, criminal, and
parking) accounts receivable in the total amount of $265,707.21 and, of that amount,
authorize $174,343.32 be turned over for collection.
HISTORY AND FACTS BRIEF:
1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-offs are under
$10 with no current forwarding address, or are accounts in "occupant" status. Accounts submitted for
collection exceed $10.00.
2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed $10.00. Direct write offs
including DSHS and Medicare customers; the law requires that the City accept assignment in these
cases.
3. COURT ACCOUNTS RECEIVABLE - These are all delinquent non -criminal and criminal fines, and
parking violations over 30 days past due.
4. CODE ENFORCEMENT — LIENS — These are Code Enforcement violation penalties which are
either un -collectable or have been assigned for collections because the property owner has not
complied or paid the fine. There are still liens in place on these amounts which will continue to be in
effect until the property is brought into compliance and the debt associated with these liens are paid.
5. CEMETERY — These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
6. GENERAL - These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
7. MISCELLANEOUS - These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
3(b).2
Amount
Direct
Referred to
Total
Write-offs
Collection
Write-offs
Utility Billing
$
91.55
1,481.01
1,572.56
Ambulance
$
90,856.84
9,170.31
100,027.15
Court A/R
$
.00
158,349.00
158,349.00
Code Enforcement
$
415.50
5,343.00
5,758.50
Cemetery
$
.00
.00
.00
General
$
.00
.00
.00
Miscellaneous
$
.00
.00
.00
TOTAL:
$
91,363.89
174,343.32
265,707.21
3(b).2
AGENDA REPORT
FOR: City Council
TO: Dave Zabell, City Manager
FROM: Stan Strebel, Deputy City Manage.
SUBJECT: Settlement Agreement Charter Communications
I. REFERENCE(S):
November 4, 2014
Workshop Mtg.: 11/10/14
Regular Mtg.: 11/17/14
1. Settlement Agreement Charter Communications — Proposed Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
11/10: Discussion
11/17: MOTION: I move to approve the Settlement and Release Agreement with
Charter Communications and, further, authorize the City Manager
to execute the Agreement.
III. FISCAL IMPACT:
Charter payment of $90,322.
IV. HISTORY AND FACTS BRIEF:
A) The City has been in negotiations with Charter Communications over the renewal
of Charter's franchise agreement for nearly three years. As part of the City's
preparation for negotiation, Council authorized the hiring of a consultant to advise
on a number of matters of importance covered under the franchise. One part of
the preparation included completion of an audit of Charter's past performance and
compliance with the terms of the franchise was conducted. The audit helped the
City to reach an agreement with Charter on the payment of $90,322 as a
settlement for the City's claims of underpayment of franchise fees and utility
taxes for the settlement period (10/1/07-10/30/14).
V. DISCUSSION:
A) Council approval the settlement agreement is recommended so that this issue can
be taken off the table for future franchise renewal discussions. As Council is
aware, Comcast has made a request to assume Charter's franchise and, assuming
FCC approval (plus a sufficient number of approvals by local franchise
authorities) of the transfer, the City is expecting to complete the remainder of the
renewal process with Comcast by next fall.
3(c)
SETTLEMENT AND RELEASE AGREEMENT
This Settlement and Release Agreement (the "Settlement Agreement") is made this
day of November, 2014, by and among City of Pasco (the "City"), and Falcon
Video Communications, L.P. locally known as Charter Communications ("Charter").
RECITALS
WHEREAS, Charter operates a cable system in the City and is required to pay to the
City franchise fees pursuant to a franchise agreement between the parties (the "Franchise"), and
utility taxes pursuant to local law;
WHEREAS, the City conducted an audit of the franchise fee payments made by Charter
for the period from October 1, 2007, to September 30, 2011 (the "Audit Period");
Period; WHEREAS, the City's audit claimed that Charter underpaid franchise fees for the Audit
WHEREAS, Charter disputed the results of the City's audit and arrived at a different
conclusion than the City's audit;
WHEREAS, the City and Charter extended the Audit Period up to and including the
period from October 1, 2011 to October 30, 2014, and further included the City's claim for
utility taxes from October 1, 2007 through October 30, 2014, in their discussions related to the
City's audit;
WHEREAS, Charter has agreed to submit payment to the City in the amount of ninety
thousand three hundred and twenty-two dollars ($90,322.00) to forever settle past claims on
franchise fees and utility taxes due the City for the period between October 1, 2007, and October
30, 2014 ("Settlement Period");
WHEREAS, the City and Charter now desire to conclude, settle, release and discharge
once and forever, all rights, claims, causes of actions, liabilities, disputes and demands relating to
the City's past claims on franchise fees and utility taxes due the City for the Settlement Period;
NOW THEREFORE, in consideration of the foregoing, and in consideration of the
mutual promises and obligations hereinafter set forth, and for good and valuable mutual
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this
Settlement Agreement hereto agree as follows:
AGREEMENT
1. SETTLEMENT AMOUNT
The City and Charter have agreed that Charter shall submit payment to the City in the
amount of ninety thousand three hundred and twenty-two dollars ($90,322.00) in full
settlement of past claims on franchise fees and utility taxes for the Settlement Period
("Settlement Amount"). Charter agrees to pay this amount to the City within thirty days
(30) days after receipt of the executed Settlement Agreement from the City. It is
expressly understood and agreed that the Settlement Amount represents full and complete
satisfaction and compromise of any and all claims, actions, causes of action,
controversies, demands, damages, debts, agreements, obligations, liabilities, interest,
liens, expenses, costs, attorney's fees and demands of any kind or nature, known or
unknown, arising out of or in any way related to the City's past claims on franchise fees
and utility taxes due the City for the Settlement Period. Notwithstanding any provision
of this Settlement Agreement, the parties hereby acknowledge that to the extent permitted
by and in a manner consistent with applicable law, Charter may, (1) recover the
Settlement Amount from subscribers, and (2) include the recovered amount as a line item
on subscriber bills.
2. RELEASE OF CLAIMS
This Settlement Agreement is entered into in compromise of disputed claims and rights
with respect to franchise fees and utility taxes paid and owed during the Settlement
Period. Specifically, the City and Charter desire to compromise, settle and discharge all
disputes, claims, demands, actions or causes of action whatsoever of every kind and
nature that pertain to, or arise out of, franchise fee and utility tax payments by Charter
during the Settlement Period. The City, therefore, hereby forever discharges and releases
Charter, and its parents, subsidiaries, related affiliates and their respective officers,
directors, shareholders, owners, partners, employees, agents, contractors, representatives,
predecessors, successors, assigns, insurers, and attorneys, and each of them from any and
all claims, demands, rights, liability, suits, debts, liens, actions and causes of action, of
every kind and nature whatsoever, at law or in equity, known and unknown, suspected
and unsuspected, disclosed and undisclosed which the City ever had, now has or hereafter
may have by reason or any act, omission, matter, cause or thing, arising out of the
Payment, nonpayment, underpayment, or overpayment of franchise fees and utility taxes
during the Settlement Period. It is understood and agreed that this is a compromise of
disputed claims and shall not be construed as an admission of any liability of Charter to
the City, nor shall it establish a precedent for how either party may proceed with regard
to franchise fees or utility taxes due to the City for timeframes after the Settlement
Period. Furthermore, the City expressly agrees that this Settlement Agreement and the
dispute between the parties concerning Charter's payment of franchise fees and utility
taxes during the Settlement Period that it settles, may not be used by the City in any way
in any subsequent judicial or administrative proceeding against Charter other than to
enforce the terms of this Settlement Agreement.
3. VOLUNTARY AGREEMENT
This Settlement Agreement is freely and voluntarily given by each party, without any
duress or coercion, and after each party has consulted with its counsel. Each party has
carefully and completely read all of the terms and provisions of this Settlement
Agreement. It is understood and agreed by the City and Charter that nothing herein shall
be deemed to be an admission of liability by Charter with respect to the matter of this
Settlement Agreement.
Settlement Agreement — City of Pasco and Falcon Video Communications/Charter Communications
Page 2
4. AUTHORITY AND BINDING EFFECT
City and Charter represent and warrant to the other that each has the legal right, power
and authority to enter into this Settlement Agreement and to perform its obligations
hereunder. This Settlement Agreement will inure to the benefit of and be binding upon
the parties and their respective successors and assigns. The parties for themselves and
their respective successors and assigns agree to join in or execute any instruments and to
do any other act or thing necessary or proper to carry into effect this or any part of this
Settlement Agreement.
5. ENTIRE AGREEMENT
This Settlement Agreement sets forth the entire agreement between the City and Charter
relating to the subject matter of this Settlement Agreement.
6. GOVERNING LAW
This Settlement Agreement, and any controversies arising hereunder, shall be interpreted
in accordance with the laws of the State of Washington and adjudicated in a state or
federal court of competent jurisdiction located in the State of Washington.
IN WITNESS WHEREOF, the parties have executed this Settlement Agreement as
their free and voluntary acts and deeds, effective as of the date first above written.
City of Pasco, Washington
Dave Zabell, City Manager
Approved as to Form:
Leland B. Kerr, City Attorney
Attest:
Debbie Clark, City Clerk
Falcon Video Communications, L.P., lWa
Charter Communications
Mark Brown, Vice President
Approved as to Form:
Charter Communications Counsel
Settlement Agreement — City of Pasco and Falcon Video Communications/Charter Communications
Page 3
AGENDA REPORT
FOR: City Council November 10, 2014
TO: Dave Zabell, City Manage Regular Mtg.: 11/17/14
Rick White,
Community & Economic Development Director �{
FROM: David I. McDonald, City Planner
SUBJECT: UTILITY EASEMENT: CENTURY LINK (MF # ESMT 2014-005)
I. REFERENCE(S):
1. Utility Easement, Century Link - Overview Map
2. Utility Easement, Century Link - Vicinity Map
3. Utility Easement, Century Link - Easement
H. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
11/17: MOTION: I move to authorize the Mayor to execute the easement granting
Century Link an easement across a portion of the Parks Division
shop property adjacent to the City View Cemetery.
III. FISCAL IMPACT
None
IV. HISTORY AND FACTS BRIEF:
A. Dura Plastics is in the process of installing utilities and constructing access roads
into and through their property at 1601 North Idaho Avenue (north of Motel 6).
This work is being done in preparation for the construction of a large warehouse
and related development.
B. The current work on the Dura Plastics site has revealed several issues related to
the lack of utility easements for utilities serving the property and nearby
properties. In July of this year Dura Plastics granted an easement to the City for
an existing water line that was located on the property for many years without an
easement.
C. An easement for telecommunication lines is now needed to serve the Dura
Plastics site. Due to an off -set property line at the north end of Idaho Avenue
Century Link telecommunication lines extending north in Idaho Avenue will cross
a small portion of City owned property prior to entering the Dura Plastics site. An
18 -foot by 48 -foot easement is needed in this area for the telecommunication
lines. The proposed easement is located in the southeast corner of the Parks
Division shop property to the east of the City View Cemetery. This area of the
shop property is currently encumbered with water lines, valves and a vault and as
a result the proposed easement will have minimal impact on the property.
3(d)
x,
rv�kt�
ak
F
O
�
O
w
N
�
N
>lV
x,
rv�kt�
ak
>
F
Wei
>
After Recording, Return To:
City Engineer
City of Pasco
PO Box 293
Pasco, WA 99301
UTILITY EASEMENT
Tax Parcel No. 113400061
THE GRANTOR, City of Pasco, a Municipal Corporation of the State of Washington,
conveys and hereby grants to Century Link, a Washington Corporation, and to its
successors or assigns, a non-exclusive utility easement to construct, operate, maintain,
repair, replace or remove on and under the below described land telephone utilities
service lines and components with surface obstructions associated with said utility
service (i.e. pedestals, etc.):
THE SOUTH 48 FEET OF THE EAST 18 FEET OF THE WEST 150 FEET OF THE
NE QUARTER OF SECTION 20, TOWNSHIP 9 NORTH, RANGE 30 EAST, W.M,.
AS SHOWN IN EXHIBIT A.
DATED this day of 72014.
GRANTOR
Owner
STATE OF WASHINGTON )
. ss.
County of FRANKLIN )
On this day of , 2014, before me, the undersigned, duly
commissioned and sworn, personally appeared to me known to
be the individual(s) described above and who executed the within and foregoing
instrument as an agent of the owner(s) of record, and acknowledged to me that
he/she/they signed the same as his/her/their free and voluntary act and deed, for the uses
and purposes therein mentioned, and on oath stated that he/she/they is/are authorized to
execute the said instrument.
GIVEN under by hand and official seal this day of , 2014.
Print Name:
NOTARY PUBLIC in and for the State of Washington
Residing; at:
My Commission Expires:
Y�17EXHIBIT A600 0 600 1200FULL SIZE -SCALE IN FEET. 1 600'
\
.-
-- --
^--�^ --------- �----�-
17v16
21
m
N
AGENDA REPORT
FOR: City Council
TO: Dave Zabell, City Manager
Rick White,
Community & Economic Development Director/�'
FROM: David I. McDonald, City Planner
SUBJECT: First Place, Phase 5 Final Plat (MF# FP 2014-004).
I. REFERENCE(S):
1. First Place Phase 5- Overview Map
2. First Place Phase 5- Vicinity Map
3. First Place Phase 5- Final Plat
November 10, 2014
Regular Mtg.: 11/17/14
H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
11/17: MOTION: I move to approve the final plat for First Place, Phase 5.
III. FISCAL IMPACT:
NONE
IV. HISTORY AND FACTS BRIEF:
A. In November of 2006 the City Council approved a preliminary plat for First Place.
The developer is now seeking final plat approval for Phase 5.
B. The First Place subdivision is a single-family residential development located west
of Road 44 and north of the FCID irrigation canal.
V. DISCUSSION:
A. Prior to approval of a final plat, the developer is to either install all infrastructure or
post a bond or other instrument that secures the financing for the necessary
infrastructure improvements. In this case, the developer has completed the
infrastructure improvements.
B. The final plat shows and contains information on primary control points, tract
boundaries, dimensions, bearings, lot numbers and other necessary engineering
data. In addition, the plat contains the required descriptions, dedication and
acknowledgment, and approval sections.
3(e)
fill yt�yg
ppp§b
Ahip
'�
�' N '�'3 �� PL �i •Y axY. �$
0.4 r g g l
? G
b, i Sb y4
CO
81
1
will
h �svi�oYimfb .i.WNIPN}'NA ONbN� " � p.
k
€$��z�
5 d ffi ^' b Fyyg i §§gggg H
i C■� $�55g�aiip�is �#S
y C d4
11 A
$r age$§ ME $ e s' x � � �b $$ of
INN1y1yxp6$y6 � RIO; Ili'
��Ib������� � q),51� �6g6� p[�� �� !� �
{p� g§gp2C@ 4 p. ay %IBN R` ` 'a?i� 662 c, bYb Nit ,.
g x
'�Ixjjivql �'11 x
001111
e xpp flag,I*15 1
R b E'v - o 4
k i qy€ S
xyq
•b �i �qi CY a Y� Hop
s
y @h B a T p# % @qgg 3 s@
5 �� �,iR
1 K £i6g e E g p 8 b C yd
$ Y`] fG 5R8 ' �p$ gE �n4q$~ rqg��
4% oY a�34 cidn45 x cH 2E
R l`nR4'F'Y4ti a ..
ti• •��• e.�si
r
g
Y
°
ik
.q
m
YL
B
Q#
F
R b E'v - o 4
k i qy€ S
xyq
•b �i �qi CY a Y� Hop
s
y @h B a T p# % @qgg 3 s@
5 �� �,iR
1 K £i6g e E g p 8 b C yd
$ Y`] fG 5R8 ' �p$ gE �n4q$~ rqg��
4% oY a�34 cidn45 x cH 2E
R l`nR4'F'Y4ti a ..
ti• •��• e.�si
AGENDA REPORT
FOR: City Council
TO: Dave Zabell,City ManagerQQ���"�
Rick White,
Community & Economic Development Director � V
FROM: David I. McDonald, City Planner
SUBJECT: First Place, Phase 7 Final Plat (MF# FP 2014-005).
I. REFERENCE(S):
1. First Place Phase 7- Overview Map
2. First Place Phase 7- Vicinity Map
3. First Place Phase 7- Final Plat
November 10, 2014
Regular Mtg.: 11/17/14
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
11/17: MOTION: I move to approve the final plat for First Place, Phase 7.
III. FISCAL IMPACT:
NONE
IV. HISTORY AND FACTS BRIEF:
A. In November of 2006 the City Council approved a preliminary plat for First Place.
The developer is now seeking final plat approval for Phase 7.
B. The First Place subdivision is a single-family residential development located west
of Road 44 and north of the FCID irrigation canal.
V. DISCUSSION:
A. Prior to approval of a final plat, the developer is to either install all infrastructure or
post a bond or other instrument that secures the financing for the necessary
infrastructure improvements. In this case, the developer has completed the
infrastructure improvements.
B. The final plat shows and contains information on primary control points, tract
boundaries, dimensions, bearings, lot numbers and other necessary engineering
data. In addition, the plat contains the required descriptions, dedication and
acknowledgment, and approval sections.
3(f)
T - fir, v -
®GQRt n
It
g b r kFB tt
El MM�
11 ME
e�•
-+ R
AAII wv6 YY 81MxMMOXlM
3 � ��..x,�„� Y, g ni
b� gym. anw �.amm x �axr..c,a we q
�
gE _�--�.,
a n
M lie'
- e' b
5 �3
olgA,�
x s@ 3 §i5
it
,n .Harz 6 g66 2y�ja s @� 5 �d]yypp
q$y44 G q yak` % 8���-g+ q9 gP 5 eKb �Y
q`f yg`Rygg$�k. n n � n 8 � ps ddb�p 57 o3g 4 �'�
3�IV
HIM d gifli$'�yn�O5111 tl
"y n
11
e nb
qj
u�ag°Gnpgagy
NZ
91 fit
� W g�g9��'g•@�Mi��$��� °b��E�t�q33p�`�'yJYpptl d
F .t
16
r
bYJ HiMfi l A].w3 X aliWKq p &n�Yll
�
3
N HIM
C qg", �� ceg4glti+4
� N�N
@42 a^
�aX3��
a•�. �11d y gyp ' p �M� 1
Ydy*6 iM a
�I $a'")E '.��F . ��•�\3�4 ,/\`\\`\ � ��1' �� � �� ��q� R #e to
I I^ rrtr a qy a n e& B 3
I., i T'$�L,•y —� I'! R i 1 �� 6g#5"tips Ram
;a
___. __-J G Q $$ §pry d lg ¢ Is 4!'Y' je(pyg
i - • Yl'1 5�j g;E •.o•�• ydt- i s 9 tl11,&bt5 IN pE 5, 11 4!':ENH
,t
1
•� T.. Lam- _____ _,� '
I II \
P1 I' 1 1 • aµi yvV�iYu 1 1 I I ``
♦�+. ^� ^.e IIII,$j1i*gi
`Nyyal�i$ A 4 1- iits
ap
JY .
C.'J, _6•Y� _@'L SAL_ 1Y ' ' Q{Ig
ualeaa alvlu �iw. �� L — / fpill
VYbGa 1IWu ti11ni
1.1811
gy�y�I�p��gtp��Fp���1p2�l6�N�s�g1���p€u�1{�
j py �q��y;hype �}I}¢�hypp
�'�.1Y�A}FS¢44ky`G1p{(..tl}ky54p6p?yyyily$1py,yaXlt�`gPjj1{yRj`pil4yp[4yyy�RjyF�4yyg1�y�1}I`eipl`y1l'jN¢�iygjyyS
I$
'a
r�
�•, �a+
¢igg�iii��IIppC4tt0.EpSi��1f 4RY;;g� g�f�\a Ciix65Xxki��{�Ttkq�CW{IYMRi•S�!°y�qY
4.,�
:
.c0j1
'�H16YffiMf'I �I�t9PR{SA% 6
�
'ti p m ra "+, o lTi
#gase'yn«e�859E39# �
4
wyaF�aZ
�+
�'banxngorteBgCBAESg88llA&B3A88®dH5tl9dg
R
Vm UcHwz
`.'
p ..
f1
9 R
�IQ�OhL.1 Y_
Pi
F .t
16
r
bYJ HiMfi l A].w3 X aliWKq p &n�Yll
�
3
N HIM
C qg", �� ceg4glti+4
� N�N
@42 a^
�aX3��
a•�. �11d y gyp ' p �M� 1
Ydy*6 iM a
�I $a'")E '.��F . ��•�\3�4 ,/\`\\`\ � ��1' �� � �� ��q� R #e to
I I^ rrtr a qy a n e& B 3
I., i T'$�L,•y —� I'! R i 1 �� 6g#5"tips Ram
;a
___. __-J G Q $$ §pry d lg ¢ Is 4!'Y' je(pyg
i - • Yl'1 5�j g;E •.o•�• ydt- i s 9 tl11,&bt5 IN pE 5, 11 4!':ENH
,t
1
•� T.. Lam- _____ _,� '
I II \
P1 I' 1 1 • aµi yvV�iYu 1 1 I I ``
♦�+. ^� ^.e IIII,$j1i*gi
`Nyyal�i$ A 4 1- iits
ap
JY .
C.'J, _6•Y� _@'L SAL_ 1Y ' ' Q{Ig
ualeaa alvlu �iw. �� L — / fpill
VYbGa 1IWu ti11ni
1.1811
AGENDA REPORT
TO: City Council
FROM: Dave Zabell, City Manager
SUBJECT: 2015 Legislative Priorities
I. REFERENCE(S):
1. 2015 Legislative Priorities — Priorities List
2. 2015 Legislative Priorities — Proposed Resolution
November 12, 2014
Regular Mtg.: 11/17/14
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
11/17: MOTION: I move to approve Resolution No. J, declaring the city's
Legislative Priorities for the 2015 session of the Washington State
Legislature.
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
A) The Washington State Legislature convenes on Monday January 12, 2015. The
upcoming session, commonly referred to as the "long session," is scheduled to
end on April 26, 2015. Being the first session of the biennium, considerable
activity is anticipated on major policy matters impacting Pasco and other
municipalities. These proposals have the potential to favorably or adversely
impact the city and its mission. Looming large this year is the Washington State
Supreme Court's McCleary decision relating to the funding of public schools and
its impact on the state budget.
B) The city has maintained a proactive posture with the legislature regarding the
interests of Pasco. One means by which Council has historically made their
concerns and interests known to the legislature, and specifically its legislative
delegation, is through the adoption of legislative priorities as a statement of the
City.
C) Given the breadth and scope of the City's priorities, in order to be effective, the
City contracts with a legislative consultant based in Olympia to provide an on -the -
ground presence in Olympia during session, monitor the state legislature
throughout the year, and advance the City's legislative agenda accordingly.
V. DISCUSSION:
A) On November 3, Briahna Taylor, Vice President, Gordon Thomas Honeywell
Governmental Affairs presented Council with an overview of the upcoming
session as well as discussed the attached list of priorities.
B) Staff recommends Council approval of the list of priorities, as contained in the
attached Resolution.
3(g)
City of Pasco
2015 State Legislative Priorities
PUBLIC WORKS REUSE FACILITY EXPANSION
The City requests $2.75 million in capital funding to expand its Public Works Reuse
Facility to support the economic growth of the food processing and agriculture sectors,
provide a less impactful environmental alternative to use of the municipal wastewater
treatment plant, and conserve water. Pasco's Public Works Reuse Facility offers food
processors significant savings by recycling food processing wastewater for agricultural use,
rather than discharging the wastewater to the municipal system and into the Columbia
River. The proposed expansion provides a lift station and wastewater pipeline that would
serve three more existing processors, and create capacity for future food processors. This
would also increase the amount of treated process water available to serve agricultural land.
An appropriation of $2.75 million would fund 50% of the expansion, with the remainder
being funded locally.
TRANSPORTATION FUNDING: LEWIS STREET OVERPASS
The Lewis Street Overpass project replaces a deteriorating and functionally obsolete 1937
railroad underpass on a former state highway. The project cost is approximately $26
million. The City is requesting state funds because the construction cost is simply beyond
the financial capacity of local taxpayers. With prior aid from the state, the City has
completed right-of-way acquisition and design of the new structure; and demolition of the
buildings purchased for right-of-way is nearing completion. The project is now "shovel
ready." The City is supportive of a transportation revenue package, including associated tax
increases, as long as the Lewis Street Overpass is fully funded. The City also encourages the
state to provide reforms to the state transportation system as part of any revenue package.
RESTORE "STATE -SHARED REVENUES" FOR CITIES
Pasco receives nearly $1 million annually from the state, categorized as "state -shared
revenues" (liquor excise tax, nuclear generating tax, sales tax mitigation, city/county
assistance, etc.). In recent years, a portion of these revenues have been redirected to the state
general fund. Pasco supports restoring and protecting these payments to cities; their loss will
put in jeopardy the reliable delivery of important local public safety services.
NOTIFICATION OF PRE -ANNEXATION AGREEMENTS
Annexation agreements are signed by a property owner; the City agrees to provide city
utility services, and, in return, the property owner agrees to be annexed into the City. When
a property is sold, buyers are currently notified of existing pre -annexation agreements on a
property's title report. Pasco has learned that homebuyers overlook the notation on the title
report, and purchase property unaware of whether such an agreement has been signed. The
City supports legislation improving notification of existing pre -annexation agreements
through the home buying process.
PUBLIC RECORDS REFORM
Pasco supports reform to statutes governing public records requests. While the City recognizes
the need for and benefits of transparency and accountability in government, all too often the right
to obtain public records is abused and extraordinary public costs are absorbed by cities.
Preliminary findings of the Ruckelshaus mediation process have indicated that a majority of
respondents are interested in a non judicial path to resolution of disputes regarding public
records requests. The City requests that the state allocate funding to continue the mediation
process.
ELECTION OF JUDGES
Pasco opposes legislation mandating that part-time municipal court judges be elected rather than
appointed. Appointed judges are equally qualified professionally and there is no compelling
evidence that appointed judges are a threat to the administration of justice. In fact, requiring
election of all judges would be very problematic for part-time courts, particularly in small and
rural communities found throughout eastern Washington.
MARIJUANA LAWS
The new recreational marijuana industry is subject to a state excise tax as high as 75%, but none
of this potential funding is directed to local agencies to address public safety needs and other
local impacts. The City supports sharing this revenue with the local level, maintaining local
control to ban and zone marijuana businesses, and clarifying the statutes governing recreational
and medical marijuana.
LABOR REFORM
One of Pasco's largest cost drivers is labor costs. The City supports legislation reducing these
costs. For example, under state law, police and fire personnel are guaranteed binding arbitration
for wages and benefits in lieu of the right to strike. While arbitration can be appropriate, current
language obligates the arbitrator to give paramount consideration to what "comparable
departments" are paying rather than the ability of the employer to absorb the cost. Modification
of the arbitration statute would better balance the interests of uniformed employees with those of
the taxpayer.
RESOLUTION NO., �W
A RESOLUTION declaring the city's legislative priorities for the 2015 session
of the Washington State Legislature.
WHEREAS, the 2015 session of the Washington State Legislature commences on January
12; and
WHEREAS, the City of Pasco, as a municipal corporation and subdivision of the state, can
be substantially affected by the actions of the legislature; and
WHEREAS, the City Council has evaluated proposed legislation that could adversely impact
the City as well as strategies to improve the services the City provides to its citizenry; and
WHEREAS, from this effort the City Council has developed a list of state legislative
priorities; and
WHERAS, the City Council desires to identify its legislative priorities for the 2015
legislative session so they can be provided to state legislators and the public prior to
commencement of the next legislative session; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO RESOLVE
AS FOLLOWS:
Section 1. That the legislative objectives stated herein below constitute the priorities of the
City of Pasco for the 2015 legislative session.
PUBLIC WORKS REUSE FACILITY EXPANSION: The City requests $2.75
million in capital funding to expand its Public Works Reuse Facility to support the
economic growth of the food processing and agriculture sectors, provide a less impactful
environmental alternative to use of the municipal wastewater treatment plant, and
conserve water. Pasco's Public Works Reuse Facility offers food processors significant
savings by recycling food processing wastewater for agricultural use, rather than
discharging the wastewater to the municipal system and into the Columbia River. The
proposed expansion provides a lift station and wastewater pipeline that would serve three
more existing processors, and create capacity for future food processors. This would also
increase the amount of treated process water available to serve agricultural land. An
appropriation of $2.75 million would fund 50% of the expansion, with the remainder
being funded locally.
TRANSPORTATION FUNDING, LEWIS STREET OVERPASS: The Lewis Street
Overpass project replaces a deteriorating and functionally obsolete 1937 railroad
underpass on a former state highway. The project cost is approximately $26 million.
The City is requesting state funds because the construction cost is simply beyond the
financial capacity of local taxpayers. With prior aid from the state, the City has
completed right-of-way acquisition and design of the new structure; and demolition of the
buildings purchased for right-of-way is nearing completion. The project is now "shovel
ready." The City is supportive of a transportation revenue package, including associated
tax increases, as long as the Lewis Street Overpass is fully funded. The City also
encourages the state to provide reforms to the state transportation system as part of any
revenue package.
■ RESTORE "STATE -SHARED REVENUES" FOR CITIES: Pasco receives nearly $1
million annually from the state, categorized as "state -shared revenues" (liquor excise tax,
nuclear generating tax, sales tax mitigation, city/county assistance, etc.). In recent years,
a portion of these revenues have been redirected to the state general fund. Pasco supports
restoring and protecting these payments to cities; their loss will put in jeopardy the
reliable delivery of important local public safety services.
NOTIFICATION OF PRE -ANNEXATION AGREEMENTS: Annexation
agreements are signed by a property owner; the City agrees to provide city utility
services, and, in return, the property owner agrees to be annexed into the City. When a
property is sold, buyers are currently notified of existing pre -annexation agreements on a
property's title report. Pasco has learned that homebuyers overlook the notation on the
title report, and purchase property unaware of whether such an agreement has been
signed. The City supports legislation improving notification of existing pre -annexation
agreements through the home buying process.
• PUBLIC RECORDS REFORM: Pasco supports reform to statutes governing public
records requests. While the City recognizes the need for and benefits of transparency and
accountability in government, all too often the right to obtain public records is abused
and extraordinary public costs are absorbed by cities. Preliminary findings of the
Ruckelshaus mediation process have indicated that a majority of respondents are
interested in a non judicial path to resolution of disputes regarding public records
requests. The City requests that the state allocate funding to continue the mediation
process.
■ ELECTION OF JUDGES: Pasco opposes legislation mandating that part-time
municipal court judges be elected rather than appointed. Appointed judges are equally
qualified professionally and there is no compelling evidence that appointed judges are a
threat to the administration of justice. In fact, requiring election of all judges would be
very problematic for part-time courts, particularly in small and rural communities found
throughout eastern Washington.
■ MARIJUANA LAWS: The new recreational marijuana industry is subject to a state
excise tax as high as 75%, but none of this potential funding is directed to local agencies
to address public safety needs and other local impacts. The City supports sharing this
revenue with the local level, maintaining local control to ban and zone marijuana
businesses, and clarifying the statutes governing recreational and medical marijuana.
2015 Legislative Priorities Resolution
Page 2
LABOR REFORM: One of Pasco's largest cost drivers is labor costs. The City
supports legislation reducing these costs. For example, under state law, police and fire
personnel are guaranteed binding arbitration for wages and benefits in lieu of the right to
strike. While arbitration can be appropriate, current language obligates the arbitrator to
give paramount consideration to what "comparable departments" are paying rather than
the ability of the employer to absorb the cost. Modification of the arbitration statute
would better balance the interests of uniformed employees with those of the taxpayer.
Section 2. The City Manager is hereby directed to inform state legislators and other
appropriate parties of the City's 2015 legislative priorities.
PASSED by the City Council of the City of Pasco at its regular meeting this 17th day of
November, 2014.
Matt Watkins
Mayor
ATTEST:
Debra Clark
City Clerk
APPROVED AS TO FORM:
Leland B. Kerr
City Attorney
2015 Legislative Priorities Resolution
Page 2
REVENUE SOURCES:
TAXES:
PROPERTY
SALES
PUBLIC SAFETY
UTILITY
OTHER
LICENSES & PERMITS
INTERGOV'T REVENUE
CHARGES FOR SERVICES
FINES & FORFEITS
MISC. REVENUE
DEBT AND TRANSFERS IN
TOTAL REVENUES
BEGINNING FUND BALANCE
TOTAL SOURCES
EXPENDITURES:
CITY COUNCIL
MUNICIPAL COURT
CITY MANAGER
POLICE
FIRE
ADMIN & COMMUNITY SVCS
COMMUNITY DEVELOPMENT
ENGINEERING
LIBRARY
NON -DEPARTMENTAL
DEBT AND TRANSFERS OUT
TOTAL EXPENDITURES
ENDING FUND BALANCE
GENERAL FUND OPERATING STATEMENT
THROUGH OCTOBER 2014
YTD
2014
% OF
YTD
2013
2014
AMENDED
ANNUAL
2013
AMENDED
ACTUAL
BUDGET
BUDGET
ACTUAL
BUDGET
1,771,200
1,017,391
1,148, 380
1,603,942
5,389,612
6,845,170
78.7%
5,242,997
6,400,000
8,625,389
8,207,000
105.1%
7,947,190
9,095,000
1,027,147
1,100,000
93.4%
941,956
1,000,000
7,092,896
7,789,544
91.1%
6,637,074
7,798,000
1,003,421
1,090,000
92.1%
1,017,345
1,065,000
1,464,172
1,124,800
130.2%
1,413,080
1,323,843
1,673,830
1,496,000
111.9%
1,482,919
1,392,613
4,715,717
5,391,233
87.5%
3,963,902
4,536,509
718,161
882,000
81.4%
758,998
792,650
476,008
581,160
81.9%
521,381
626,850
1,141,299
4,077,956
28.0%
626,596
1,295,303
33,327,652 38,584,863
5,264,801 5,902,824
38,592,453 44,487,687
87,893
113,152
1,283,542
1,481,060
1,024,794
1,041,567
10,073,825
12, 428, 014
4,382,228
5,207,376
6,068,266
7,161,101
1,207, 711
1,442,650
1,393,688
1,771,200
1,017,391
1,148, 380
1,603,942
1,739,143
82,394
5,511,838
28,225,673 39,045,481
10,366,781 5,442,206
TOTAL EXPEND & END FUND BAL 38,592,453 44,487,687
AVAILABLE CASH BALANCE 6,043,778
PERCENTAGE OF BUDGET ALLOCATED FOR 10 MONTHS
These statements are intended for Management use only.
86.4% 30,553,439 35,325,768
8,546,455 7,573,573
86.7% 39,099,894 42,899,341
77.7%
88,421
121,315
86.7%
1,125,248
1,376,639
98.4%
831,803
967,130
81.1%
9,416,386
12,145,846
84.2%
4,587,870
5,577,366
84.7%
5,374,398
6,421,954
83.7%
1,007,450
1,332,076
78.7%
1,336,798
1,535,558
88.6%
960,051
1,148,380
92.2%
1,523,026
2,353,476
1.5%
142,660
8,927,792
72.3% 26,394,110 41,907,532
12,705, 784 1,447,253
39,099,894 43,354,785
3,055,507
83%
6(b)
AGENDA REPORT
FOR: City Council November 5, 2014
TO: Dave Zabell, City Mann�a��ge Regular Mtg.: 11/17/14
FROM: Rick Terway — Di�qg�Administrative & Community Services
SUBJECT: 2015 Property Tax Levy - Ad Valorem Tax Levy
I. REFERENCE(S):
1. 2015 Property Tax Levy - Assessed Value/Tax Levy Rate History Chart
2. 2015 Property Tax Levy - Summary of Options
3. 2015 Property Tax Levy - 2015 Ad Valorem Tax Ordinance — Option 1
4. 2015 Property Tax Levy — 2015 Ad Valorem Tax Ordinance — Option 2
5. 2015 Property Tax Levy — 2015 Preserving Property Tax Levy Capacity Ordinance
— Option 2
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
CONDUCT PUBLIC HEARING
11/17: MOTION: I move to adopt Ordinance No. , providing for the 2015 Ad
Valorem Tax Levy, and a levy for the 1999 Unlimited Tax General
Obligation Bonds and, further, authorize publication by summary
only.
III. HISTORY AND FACTS BRIEF:
The maximum allowed levy rate, per State statute, that the city can levy (per $1,000 of
assessed value) is $3.60. The last time Pasco's levy rate was near that number was in
1994. From 1994 through 1999, the City's property tax levy rate was reduced by not
levying any of the allowable 6% increase available at that time.
In November 1999, the legislature reduced the Motor Vehicle Excise Tax (WET) to $30
per vehicle. To compensate for this loss, Council elected to use most of the unused or
banked levy capacity. The levy rate for 2000 taxes was set at $3.07 per $1,000 of
assessed value — still well below the $3.60 maximum.
In 2001, the voters approved Initiative 747, limiting the amount taxing districts could
increase property tax levy over the previous year by the lesser of 101% or the Implicit
Price Deflator (IPD), without voter approval. In November 2007, that initiative was
challenged and ruled unconstitutional in the Washington State Supreme Court; that
decision returned the limit to the lesser of 6% or IPD. Council chose not to increase the
2008 property tax levy rate by any allowable legal limit.
In January 2008, the legislature placed into law those limits (suggested by I-747). The
legal limit was to be the lesser of 1% or IPD; this limit is still in effect today. IPD is an
inflation indicator much like the Consumer Price Index. The IPD figure for the 2014 tax
calculation is 1.314%.
The preliminary budget document has been prepared using an estimated property tax levy
of $7,159,507 which is represented by Option 1 below. Option 1 reflects an increase of
$226,857 over the 2014 levy amount. The proposed increase in property tax revenue is
derived by a combination of enacting the recommended and statutorily allowed one (1)
percent increase in the City property tax levy and an increase in assessed valuation due to
new construction in 2014. Option 2 retains 100% of the 2014 levy plus the addition of
new construction raising the levied amount to $7,090,181. Option 3 depicts the
maximum amount the City could collect if Council chose to levy all prior property tax
7(a)
authority that has been preserved for future use (according to the State Department of
Revenue calculations).
Pasco has been buffered from the worst of the poor overall economic conditions that have
affected other parts of the country over the past ten years, in fact during this period the
City experienced rapid growth and the revenues that go along with such growth;
construction sales tax, development fees and increased valuation. In addition, new areas
were added to the City through annexation which further expanded the tax base. While
the City continues to experience healthy growth, demands on public services have
increased with the population, and the City can no longer rely on the kind of growth
related revenues experienced just a few years ago. Additionally, the State of
Washington's economic challenges in funding basic education could negatively affect
2015's outcomes if revenue sources from the state are sharply curtailed. Overall major
tax revenues for 2015 are projected to hold steady with 2014 year end estimates.
Pasco has been fortunate in using conservative budgeting practices which has resulted in
stable fund balances to prepare the 2015 budget. Fund Balance in the general fund is
expected to drop from an estimated $6.5 million at the beginning of 2015 to an estimated
$5.7million at the end of the year. In the budget proposal, staff expects that the increase
in ongoing revenues for the general fund will be approximately $50,000 less than the
increase in ongoing expenditures. Other factors contributing to the decline in fund
balance include some one-time expenditures for equipment in the facilities division as
well as retro pay for public safety collective bargaining agreements which are projected
to be settled in 2015.
Notably the 2014 revised budget calls for a $445 thousand dollar cash payment (and $3.3
million in 2013) of the Municipal Court building project. Paying cash as compared to a
20 year debt service payment for the Municipal Court project is estimated to save the
Pasco citizens over 1 million dollars of interest payments.
The property tax levy for 2015 will be comprised of the following two elements:
1. General Property Tax Levy
2. 1999 Unlimited Tax General Obligation Fire Station/Library Bonds Debt Service
The -City is required to certify property tax levies with the County by November 30 of
each year.
IV. DISCUSSION:
The Franklin County Assessor has provided a preliminary assessed valuation of
$3,687,411,102 which is used to calculate the 2015 property taxes. This amount includes
new construction of $80,525,097 and increase in the State assessed utilities values of $0
and annexations of property before the cutoff date of March 31St of $0. The Franklin
County Assessor's Office re -assesses all properties in the County each year.
GENERAL PROPERTY TAX LEVY
Several options for setting the 2015 levy are outlined as follows:
Option 1•
Since the IPD of 1.314% is greater than 1%, last year's levy would be increased by the
allowed 1% of $69,326 plus the value of new construction, new annexations and any
increases in State Assessed Utility values at last year's rate and adding those numbers to
last year's total levy.
■ 2014 (prior year) Total General Property Tax Levy.....................................$6,932,650
■
1% increase in the levy rate based on the allowable maximum increase amount
(lesser of IPD or I%) ..........................................................................................$69,326
■ New Construction Values of $80,525,097 using the prior year rate of
$1.956301/$1,000 Assessed Value...................................................................$157,531
■ New Annexation Values of $0 using the prior year rate of $1.956301/$1,000 Assessed
Value............................................................................................................................ $ 0
• Increase in the State Assessed Utilities of $0 using the prior year rate of
$1.956301/$1,000 Assessed Value............................................................... $0
Total Proposed 2015 Levy $7,159,507
A 2015 General Levy of $7,159,507 using the assessed value of $3,687,411,102
calculates to a levy rate of $1.94161 per $1,000 of assessed value. Under this option, the
2015 levy rate would be approximately $0.0147 per $1,000 less than the 2014 rate of
$1.956301
This is the option upon which staff has based the preliminary budget presented to Council
on November 10th.
Option 2•
Council could choose not to assess the 1% allowed and there would be no increase from
2014 to 2015's levy except to add increased value related to new construction,
annexations and the changes in the value of State assessed utilities. This would set the
levy rate at $1.92281 per $1,000 of assessed value. The decrease in the levy rate of
$0.0335 is a function of the increase in the assessed value between 2014 and 2015. Under
Option 2, the 2015 General Property Tax "base" levy would remain unchanged at
$7,090,181 compared to the $69,326 increase as described in Option 1.
Option 3:
Beginning in 1993 and continuing through 2014, the City has preserved its accumulated
taxing capacity of $8,690,390. If the City was to levy all of the tax available in Option 3
and choose to levy all the preserved levy capacity, the general levy would increase to
$8,934,825. The levy rate would calculate to $2.42306 per $1,000 of assessed value, still
well below the maximum rate allowed per State statute of $3.60 per $1,000 of assessed
value. Selecting this option would require a "super majority" vote of the Council, or five
affirmative votes.
PRESERVING FUTURE LEVY CAPACITY
Preserved levy capacity, also referred to as "banked" levy capacity, is NOT money that
has been put into a bank account. It is merely capacity that has not been levied and,
therefore, dollars left in the pockets of the taxpayers. The purpose of RCW 84.55.092
allowing a governmental entity to preserve future levy capacity is to `remove the
incentive for a taxing district to maintain its tax levy at the maximum level permitted
under this chapter, and to protect the future levy capacity of a taxing district that reduces
its tax levy below the level that it otherwise could impose under this chapter, by
removing the adverse consequences to future levy capacities resulting from such levy
reductions." This simply means if the tax is not needed, a City does not have to set the
levy at the maximum amount. The City can reserve that resource for future use.
Preserving any unused levy capacity requires a "super majority" vote of the Council.
A preservation ordinance has been prepared should any unused levy capacity be available
to preserve. If council enacts Option 2, then the banked levy capacity for future years
would be $1,844,739 which is the highest lawful levy amount of $8,934,920 less the
actual levy amount of $7,090,181. If Option 1 is selected, then the banked levy capacity
for future years would be $1,775,413 which is the highest lawful levy amount of
$8,934,920 less the actual levy amount of $7,159,507.
1999 UNLIMITED TAX GENERAL OBLIGATION BOND DEBT SERVICE
The 2015 debt service requirement for the 1999 UTGO Bonds issued for the purpose of
the Library Remodel and Fire Station Relocation is $56,363 and $71,387, respectively.
Staff recommends the 1999 Unlimited Tax General Obligation Bond tax levy be set at
those amounts. The two numbers are not combined because they appeared on the official
ballot separately when voted upon. The county assessor's office requires we set these
levies separately.
The estimated assessed value for properties subject to the tax is $2,997,778,517; this will
result in levy rates of approximately $0.0188 and $0.0238 respectively, or a combined
levy rate of $0.0426. The 2014 levy rates were $0.0200 and $0.0253, respectively, or
$0.0453 combined. The schedule of payments calls for principal payments of $100,000
each year. This will result in decreased levy rates for the remaining payment schedule as
the interest portion declines. The final payment for these bonds occurs in December
2019.
Staff recommends Option 1. In the event Council selects to take Option 2, the
corresponding ordinances are attached.
$4.000 F -
$3.500
$3.000
H $2.500
i
0 $2.000
m $1.500
$2.4000
$2.2000
$2.0000
$1.8000
$1.000
$0.500
$0.000
Assessed Value
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PASCO PROPERTY TAX LEVY RATE HISTORY
(GENERAL FUND PORTION)
PER $1,000 OF ASSESSED VALUE
2.391221
1.94161
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Assessed Value (including New Construction, Annexations & Utilities)
OPTION 1
Prior Year Total General Property Tax Levy
1.000% 1 % or IPD - Increase in the levy rate based on the
allowable maximum increase amount
(Lesser of IPD 1.314% or I%) 1 %
New Construction Values of $ 80,525,097
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Annexation Values of $
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Increase in the State Assessed Utilities $ -
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Levy rate of $ 1.94161 per $1,000 of Total Assessed Value
OPTION 2
Prior Year Total General Property Tax Levy
IPD - No Increase of 1 % in the levy rate
New Construction Values of $
at the 2014 rate of $
of Assessed Value
80,525,097
1.956301 per $1,000
Annexation Values of $
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Increase in the State Assessed Utilities $
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Levy rate of $ 1.92281 per $1,000 of Total Assessed Value
OPTION 3
Highest Lawful Levy from Previous Years
Declare substantial need and increase highest allowed by I%
New Construction Values of $ 80,525,097
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Annexation Values of $
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Increase in the State Assessed Utilities $ -
at the 2014 rate of $ 1.956301 per $1,000
of Assessed Value
Levy rate of $ 2.42306 per $1,000 of Total Assessed Value
$ 3,687,411,102
$ 6,932,650
69,326
157,531
0
0
$
7,159,507
$
6,932,650
0
157,531
0
0
$
7,090,181
$
8,690,390
86,904
157,531
0
0
$
8,934,825
Option 1
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE 2015 AD VALOREM
TAX LEVY, AND A LEVY FOR THE 1999 UNLIMITED TAX GENERAL
OBLIGATION BONDS IN THE CITY OF PASCO IN ACCORDANCE
WITH STATE LAW.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN
AS FOLLOWS:
§l. The City Council of the City of Pasco (the population of which is greater than 10,000)
has met and considered its budget for the calendar year 2015;
§2. The City Council of the City of Pasco after public hearing and after duly considering
all relevant evidence and testimony presented, determined that the City of Pasco requires a
regular levy in the amount of $7,159,507, which does include the 1% allowable percentage
increase in property tax revenues from the previous year, and does include amounts resulting
from the addition of new construction and improvements to property and any increases in the
value of state -assessed property, and amounts authorized by law as a result of any annexations
that have occurred and refunds made, in order to discharge the expected expenses and
obligations of the district.
RCW 84.55.120 requires a specific statement regarding the amount of any increase in
regular property tax from the previous year. The actual general levy amount from the previous
year (2014) was $6,932,650. The City Council of the City of Pasco hereby authorizes the
following increase in the regular property tax levy to be collected in the 2015 tax year. The
dollar amount of the increase over the actual levy amount from the previous year shall be
$69,326 (Sixty-nine thousand, three hundred and twenty six dollars) which is a percentage
INCREASE of 1% (one PERCENT) from the previous year. This increase is exclusive of
additional revenue resulting from the addition of new construction and improvements, newly
constructed wind turbines to property, any increase in the value of state assessed property, and
any additional amounts resulting from any annexations that have occurred and refunds made.
The property tax from new construction to be included in the actual levy is calculated to
be $157,531. This number is the result of the amount of new construction and improvements to
property of $80,525,097, provided by the Franklin County Assessor's Office, multiplied by the
2014 (prior year) levy rate of $1.9656301 per $1,000 of that value. The property tax from
annexation to be included in the actual levy is calculated to be $0 This number is the result of
Annexation property values of $0 provided by the Franklin County Assessor's Office, multiplied
by the 2014 (prior year) levy rate of $1.956301 per $1,000 of that value. The property tax from
the increase in state assessed utilities to be included in the actual levy is calculated to be $0. This
number is the result of the amount of new increase of $0, provided by the Franklin County
Assessor's Office, multiplied by the 2014 (prior year) levy rate of $1.956301 per $1,000 of that
value.
§3. A tax for the following sums of money which includes new construction and
annexations to defray the expense and liabilities of the City of Pasco be and the same is hereby
levied for the purposes specified against all taxable property in the City for the fiscal year 2015:
General Expense, including Councilmanic Bond Debt Service $7,159,507
1999 Unlimited Tax General Obligation Bond/Library Remodel 56,363
1999 Unlimited Tax General Obligation Bond/Fire Station 71,387
$7,287,257
§4. This Ordinance shall take effect five (5) days after passage and publication.
Adopted by the City Council of the City of Pasco, on this 17th day of November, 2014.
City of Pasco:
Matt Watkins, Mayor
Attest:
Debra L. Clark, City Clerk
Approved As To Form:
Leland B. Kerr, City Attorney
Option 2
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE 2015 AD VALOREM
TAX LEVY, AND A LEVY FOR THE 1999 UNLIMITED TAX GENERAL
OBLIGATION BONDS IN THE CITY OF PASCO IN ACCORDANCE
WITH STATE LAW.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN
AS FOLLOWS:
§l. The City Council of the City of Pasco (the population of which is greater than 10,000)
has met and considered its budget for the calendar year 2015;
§2. The City Council of the City of Pasco after public hearing and after duly considering
all relevant evidence and testimony presented, determined that the City of Pasco requires a
regular levy in the amount of $7,090,181, which does not include the 1% allowable percentage
increase in property tax revenues from the previous year, and does include amounts resulting
from the addition of new construction and improvements to property and any increases in the
value of state -assessed property, and amounts authorized by law as a result of any annexations
that have occurred and refunds made, in order to discharge the expected expenses and
obligations of the district.
RCW 84.55.120 requires a specific statement regarding the amount of any increase in
regular property tax from the previous year. The actual general levy amount from the previous
year (2014) was $6,932,650. The City Council of the City of Pasco hereby authorizes the
following increase in the regular property tax levy to be collected in the 2015 tax year. The
dollar amount of the increase over the actual levy amount from the previous year shall be $0
(ZERO) which is a percentage INCRESE OF 0% (ZERO PERCENT) from the previous year.
This increase is exclusive of additional revenue resulting from the addition of new construction
and improvements, newly constructed wind turbines to property, any increase in the value of
state assessed property, and any additional amounts resulting from any annexations that have
occurred and refunds made.
The property tax from new construction to be included in the actual levy is calculated to
be $157,531. This number is the result of the amount of new construction and improvements to
property of $80,525,097, provided by the Franklin County Assessor's Office, multiplied by the
2014 (prior year) levy rate of $1.9656301 per $1,000 of that value. The property tax from
annexation to be included in the actual levy is calculated to be $0 This number is the result of
Annexation property values of $0 provided by the Franklin County Assessor's Office, multiplied
by the 2014 (prior year) levy rate of $1.956301 per $1,000 of that value. The property tax from
the increase in state assessed utilities to be included in the actual levy is calculated to be $0. This
number is the result of the amount of new increase of $0, provided by the Franklin County
Assessor's Office, multiplied by the 2014 (prior year) levy rate of $1.956301 per $1,000 of that
value.
§3. A tax for the following sums of money which includes new construction and
annexations to defray the expense and liabilities of the City of Pasco be and the same is hereby
levied for the purposes specified against all taxable property in the City for the fiscal year 2015:
General Expense, including Councilmanic Bond Debt Service $7,090,181
1999 Unlimited Tax General Obligation Bond/Library Remodel 56,363
1999 Unlimited Tax General Obligation Bond/Fire Station 71,387
$7,217,931
§4. This Ordinance shall take effect five (5) days after passage and publication.
Adopted by the City Council of the City of Pasco, on this 17th day of November, 2014.
City of Pasco:
Matt Watkins, Mayor
Attest:
Debra L. Clark, City Clerk
Approved As To Form:
Leland B. Kerr, City Attorney
Option 2
ORDINANCE NO.
AN ORDINANCE PRESERVING THE PROPERTY TAX LEVY
CAPACITY IN THE CITY OF PASCO, WASHINGTON FOR FISCAL
YEARS AFTER 2014 IN ACCORDANCE WITH STATE LAW.
WHEREAS, to provide the property tax revenues required by the general operating
budget of the City for fiscal year 2015, City Council of the City of Pasco levied property taxes
on all taxable property in the City for collection in fiscal year 2015 in the total amount of
$7,090,181, which dollar amount is the sum of (a) $6,932,650 is the amount of property taxes
levied by the City in fiscal year 2014, plus (b) $69,326 of the allowable increase of the lesser of
I% or the Implicit Price Deflator (1.314%), (c) $157,531 which is the amount of additional taxes
at the 2014 (prior year) levy rate of 1.956301 cents per $1,000 of assessed value resulting from
the addition of new construction and improvements to property in the City, plus (d) $0 relating to
property annexed into the City during fiscal year 2014, and (e) $0, which is the amount of
additional taxes at the 2014 (prior year) levy rate of 1.956301 cents per $1,000 of assessed value
resulting from the $0 increase in value of State -assessed utility property in the City, and,
WHEREAS, the City Council of the City desires to preserve in accordance with State
law (including but not limited to Chapter 84.55 RCW) the capacity of the City to levy property
taxes in future fiscal years after 2014, calculated as if the City in fiscal year 2014 had levied the
full amount allowed by state law upon a finding of substantial need therefore; and
WHEREAS, upon a finding of substantial need and based upon limit factors of the lesser
of 101% or IPD (1.314%) for the previous year and limit factors of 101% or 106% and IPD for
previous years as provided by RCW 84.55.0101 and $3.60 per $1,000 of assessed value by RCW
84.52.043 and 41.16.060, the City would be permitted to levy property taxes for fiscal year 2015
in a total amount of $8,934,825 (the "full amount allowed by law"), which dollar amount is the
sum of (a) $8,8690,390 (the actual highest lawful levy as of 2014), plus (b) $86,904 which
represents the lesser of 1% or the IPD; (c) $157,531, which is the amount of additional taxes at
the 2014 (prior year) levy rate of $1.956301 cents per $1,000 of assessed value resulting from the
addition of new construction and improvements to property in the City, plus (d) $0 which is the
amount of additional taxes at the 2014 (prior year) levy rate of $1.956301 cents per $1,000 of
assessed value resulting from property annexed into the City during fiscal year, and (e) $0, which
is the amount of additional taxes at the 2014 (prior year) levy rate of $1.956301 cents per $1,000
of assessed value resulting from no increase in value of State assessed utility; and
WHEREAS, the full amount allowed by law for fiscal year 2015 of $8,934,825 is
$1,775,318 greater than the actual property tax levy of the City for fiscal year 2015 of
$7,090,181 and such excess represents the unused 2015 property tax levy capacity that the City
desires to preserve for future fiscal years after 2014;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. The City Council of the City finds and determines that there is substantial
need for the City to preserve, for future fiscal years after 2014, the capacity to levy property
taxes on all taxable property in the City in the amount of $1,775,318, which is equal to the
unused levy capacity of the City for fiscal year 2015. This substantial need includes, without
limitation, the anticipated future requirements for additional property tax revenues that will be
needed for the construction and/or maintenance of roads, streets, bridges and other transportation
facilities of the City; to satisfy anticipated and unanticipated new regulatory requirements
applicable to the City; to provide for potential excess costs of capital facilities; and generally to
meet other substantial future financial requirements of the City.
Section 2. This ordinance shall take effect and be in force from and after its passage and
five days following its publication as required by law.
ADOPTED by the City Council by the affirmative vote of a majority plus one vote of the
members thereof and APPROVED by the Mayor of Pasco, Washington, at a regular open public
meeting thereof, this 17th day of November, 2014.
Matt Watkins, Mayor
ATTEST:
Debra L. Clark, City Clerk
APPROVED AS TO FORM:
Leland B. Kerr, City Attorney
AGENDA REPORT
FOR: City Council
TO: Dave Zabell, City Mana t4C
FROM: Stan Strebel, Deputy City Managerr
SUBJECT: Charter Cable Franchise Transfer to Comcast Cable
I. REFERENCE(S):
November 3, 2014
Workshop Mtg.: 11/10/14
Regular Mtg.: 11/17/14
1. Cable Franchise Transfer - Proposed Resolution
2. Cable Franchise Transfer - Transfer Agreement
3. Cable Franchise Transfer - Comcast Franchise Guaranty
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
11/10: Discussion
11/17: MOTION: I move to approve Resolution No. , approving a Transfer
Agreement governing the terms related to transfer of the City's
cable television system franchise from franchisee Falcon Video
Communications, L.P. to Comcast Communications, and further,
authorize the City Manager to execute the Agreement.
III. FISCAL IMPACT:
The recommended action should result in no financial impact to the City. Comcast will
continue to operate the cable system under the terms of the existing franchise, including
the payment of franchise fees to the City.
IV. HISTORY AND FACTS BRIEF:
A) Earlier this year, a major merger and transfer of cable ownership was announced
involving Comcast Communications, Time Warner Cable, and Charter. This
merger and transfer of ownership involves hundreds of cities across the country
and is subject to Federal Communication Commission and Department of Justice
approval. As part of this multi -part transaction, the ownership of the Charter
system serving the City of Pasco will be transferred to Comcast. Under Pasco's
franchise agreement, Charter is required to gain approval from the City Council
for the transfer of cable ownership.
B) On June 18, the City received a request from Comcast Corporation on behalf of
Charter Communications, hic. (the ultimate parent of Falcon Video
Communications, the holder of the cable television franchise) seeking consent for
transfer of control of the local franchise agreement to Comcast Corporation.
According to federal law, the City has 120 days to act upon this transfer, or it is
deemed approved. By mutual consent, this window was extended to November
19, 2014 to allow sufficient time to negotiate a transfer/change of control
agreement.
C) A "change of control" is similar to the assignment of a real property lease. The
change of control/transfer of ownership process is guided by FCC rules. If the
application materials are in order, and if the parties assuming control have the
ability to adequately fulfill the terms of the cable franchise, little discretion is
available to the City. The City has compiled with those rules and engaged in an
analysis of the information submitted by Comcast/Charter. As a result a transfer
agreement has been negotiated under which Comcast agrees that it will "step into
Charter's shoes" and take full responsibility for all matters, past, present, and
8(a)
future including franchise violations known and unknown and the formal proposal
submitted by Charter in response to the Request for Formal Proposal (RFRP)
issued by the Cities of Pasco and Richland as part of the franchise renewal
process.
D) Charter will be relinquishing control of the cable system to Comcast if the transfer
is approved. Therefore, Charter and Comcast have agreed have that the City
deadline for acting on the formal request for renewal of the franchise and the
decision to grant or deny the request for franchise renewal be extended to
September 30, 2015. This will permit the City to engage in discussions with
Comcast, the new franchise holder, after the Federal Communication Commission
and the Department of Justice act on the request for transfer of control and
ownership.
V. DISCUSSION:
A) Staff, the City's cable consultant, and outside counsel have reviewed the
application materials and collaborated on the change of control agreement, and
recommend that the agreement be approved.
RESOLUTION NO.
A RESOLUTION of the City of Pasco approving a Transfer Agreement
governing the terms related to transfer of the City's cable television system
franchise from Franchisee Falcon Video Communications, L.P. to Comcast
Communications and authorizing the City Manager to execute the agreement.
WHEREAS, Falcon Video Communications, L.P. ("Franchisee") currently operates a
cable system under the terms and conditions of a cable franchise (the "Franchise Agreement")
granted by the City pursuant to Ordinance, as lawfully amended from time to time in accordance
within the provisions in such documents (collectively "Franchise Documents") and applicable
law; and
WHEREAS, Charter Communications, Inc. ("Charter") is the ultimate parent company
of Franchisee (Franchisee and Charter may be referred to collectively herein as "Companies");
and
WHEREAS, pursuant to a multi -step transaction (the "Proposed Transaction") described
in the Comcast/Charter Transaction Agreement dated as of April 25, 2014 between Charter and
Comcast (the "Transaction Agreement"), the cable television system located within the City
("System") currently operated by the Franchisee will become owned by a wholly-owned
subsidiary of Comcast; and
WHEREAS, if consummated, the Proposed Transaction will result in a merger under
which Franchisee will become COO Transfers, LLC through an internal Charter restructuring
and immediately thereafter COO Transfers, LLC will become a wholly owned subsidiary of
Comcast (the "Transaction") ("COO" as used herein refers to the entity as owned by Comcast
Corporation after the closing of the Transaction); and
WHEREAS, the Franchise Documents provide that prior approval of the City is required
for a transfer of the System; and
WHEREAS, on June 19, 2014, the Companies and Comcast filed with the City an FCC
Form 394 (the "Transfer Application") pursuant to the federal Cable Act and FCC regulations,
and have requested that the City consent to the Proposed Transaction in accordance with the
terms of the Franchise Documents, and all applicable federal, state, and local law; and
WHEREAS, pursuant to the federal Cable Act and FCC regulations, the City is required
to act on the Transfer Application within 120 days of the City's receipt of a complete and
accurate Transfer Application unless the parties agree to an extension of that time period; and
WHEREAS, the City responded by letter to the Companies' and Comcast's Transfer
Application requesting answers to a series of questions; and
WHEREAS, the Companies and Comcast responded to the City's letter on July 28,
2014; and
WHEREAS, the 120 -day deadline for the City to act on the Transfer Application would
be October 17, 2014, if the application were deemed complete, however Comcast and Charter
issued an extension of the deadline to November 19; and
WHEREAS, the City has reviewed the Transfer Application and examined the financial,
technical, and legal qualifications of Comcast in accordance with applicable laws and the
Franchise Documents; and
WHEREAS, the Companies, COO, and Comcast have agreed that, following the
completion of the Proposed Transaction, COO as the new franchisee will continue to be bound
by and comply with, and be liable for any past failure of Franchisee to comply with all of the
commitments, duties and obligations under the Franchise Documents and all applicable federal,
state and local laws, to the maximum extent required by law; and
WHEREAS, the foregoing agreement is embodied in a Transfer Agreement by and
among the City, the Companies, Comcast, and COO; and
WHEREAS, based upon the parties' Transfer Agreement and the City's review and
examination, and in reliance upon the representations, documents, and information provided by
the Companies and Comcast in connection with the Proposed Transaction and supplemental
information, the City is willing to grant its consent to the Transaction.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of the Pasco:
Section 1 The Transfer Application and the Change of Control of the Franchisee as
described above is hereby approved as of November 19, 2014, subject to the following
conditions:
A. The Companies and Comcast must execute the Transfer Agreement in
substantially the form attached hereto and deliver the executed copy of the Transfer Agreement
to the City Clerk no later than 5:00 p.m. PST on December 1, 2014.
B. Guarantors must execute a Guaranty in substantially the form attached hereto
and deliver the executed copy of the Guaranty to the City Clerk no later than 5:00 p.m. PST on
December 1, 2014.
C. The Proposed Transaction must be consummated on or before June 30, 2015,
and on terms that do not materially and adversely affect the City and that are not in any material
respect different from those described in the Transfer Agreement, the Transfer Application and
other related materials provided to the City by the Companies and Comcast, otherwise the
consent provided herein shall by voidable at the option of the City.
Section 2 If the foregoing conditions are satisfied, the Transfer Application and the
Transfer of the Franchisee shall be deemed approved in accordance with applicable law. If any
of the aforementioned conditions is not satisfied, the Transfer Application and Transfer of the
Franchisee shall be deemed denied as of 5:00 p.m. PST on November 18, 2014 under applicable
law.
Cable TV Transfer Agreement — Charter to Comcast
Page 2
Section 3 The City Manager is authorized to execute the Transfer Agreement.
ADOPTED by the City Council of the City of Pasco at a regular meeting on the
day of 2014
CITY OF PASCO:
Matt Watkins, Mayor
ATTEST:
Debbie Clark, City Clerk
APPROVED AS TO FORM:
Leland B. Kerr, City Attorney
Cable TV Transfer Agreement — Charter to Comcast
Page 3
TRANSFER AGREEMENT
This Agreement is made this _ day of 2014, by and among:
1.1.1. City of Pasco, Washington, a Municipal Corporation ("City");
1.1.2. Falcon Video Communications, L.P. ("Franchisee");
1.1.3. Charter Communications, Inc. ("Charter");
1.1.4. COO Transfers, LLC ("COO"), as used herein refers to the entity as owned by
Comcast Corporation after the closing of the Transaction;
1.1.5. Comcast Corporation ("Comcast"); and
1.1.6. Franchisee and Charter may be referred to collectively herein as "Companies."
RECITALS
WHEREAS, Franchisee currently operates a cable system under the terms and
conditions of a cable franchise (the "Franchise Agreement") granted by the City pursuant to
Ordinance , as lawfully amended from time to time in accordance within the provisions in
such documents (collectively, the "Franchise Documents") and applicable law; and
WHEREAS, Charter is the ultimate parent company of Franchisee; and
WHEREAS, pursuant to a multi -step transaction (the "Proposed Transaction') described
in the Comcast/Charter Transaction Agreement dated as of April 25, 2014, between Charter and
Comcast (the 'Transaction Agreement"), the cable television system located within the City
("System") currently operated by the Franchisee will become owned by a wholly-owned
subsidiary of Comcast; and
WHEREAS, if consummated, the Proposed Transaction will result in a merger under
which Franchisee will become COO through an internal Charter restructuring and immediately
thereafter COO will become a wholly owned subsidiary of Comcast (the "Transaction"); and
WHEREAS, the Franchise Documents provide that prior approval of the City is required
for a transfer of the System; and
WHEREAS, on June 18, 2014, Charter and Comcast filed with the City an FCC Form
394 (the "Transfer Application") pursuant to the federal Cable Act and FCC regulations, and
have requested that the City consent to the Proposed Transaction in accordance with the terms of
the Franchise Documents, and all applicable federal, state, and local law; and
WHEREAS, the City and Franchisee have been engaged in an extended franchise
renewal process that is not yet complete; and
WHEREAS, the City and Franchisee have agreed to extend the term of the Franchise to
September 30, 2015; and
WHEREAS, the Companies and Comcast have agreed that, following the completion of
the Proposed Transaction, COO will continue to be bound by and comply with, and be liable for
any past failure by Franchisee to comply with, all of the commitments, duties and obligations
under the Franchise Documents and all applicable federal, state and local laws, to the maximum
extent required by law; and
WHEREAS, Comcast has agreed to guaranty the performance of COO as the new
franchisee under the Franchise; and
NOW, THEREFORE, in consideration of the City's consent to the Transfer, and subject
to the terms and conditions of this Agreement and of the City's Resolution granting consent to
the Transfer, THE PARTIES DO HEREBY AGREE as follows:
1. TRANSFER OF THE FRANCHISE
1.1 The City's consent to the Transfer Application and the transfer of control of the
Franchise in connection with the Proposed Transaction, through the adoption of the Transfer
Resolution in substantially the form attached hereto (the "Transfer Resolution'), is a condition
precedent to this Transfer Agreement becoming effective. This Transfer Agreement will be
voidable if the Proposed Transaction is not consummated by June 30, 2015, or if the City
Council does not consent to the Transfer Application and the transfer of control of the Franchise
by adopting the Transfer Resolution.
2. AFFIRMATION OF FRANCHISE OBLIGATIONS
2.1 Comcast and COO hereby accept, acknowledge and agree that, after
consummation of the Proposed Transaction, COO as the new franchisee will be bound by and
responsible for all the commitments, duties, and obligations, past, present, continuing and fixture,
embodied in the Franchise Documents, whether those commitments, duties or obligations arose
before or after the date of consummation of the Proposed Transaction or the date that the City
Council adopts the Transfer Resolution, to the maximum extent permitted by law, and that
neither consummation of the Proposed Transaction nor the City's approval of the Transfer
Application will have any effect on these obligations.
2.2 Comcast and COO agree that neither consummation of the Proposed Transaction
nor the City's approval of the Transfer Application shall in any respect relieve COO as the new
franchisee of any responsibility it may have for past acts or omissions, known or unknown,
including any liability for any and all previously accrued but unfulfilled obligations of the
Franchisee to the City under the Franchise Documents and applicable law, for all purposes,
including but not limited to review of past performance for purposes of determining whether the
Franchise should be renewed. Neither consummation of the Proposed Transaction nor this
Transfer Agreement shall modify the rights of the Companies and/or the City under or related to
the Franchise Documents as compared to the rights that could have been exercised by the
Franchisee and/or the City had the Proposed Transaction not occurred. This Agreement shall
have no effect on the rights of the City to ensure compliance, or cure of non-compliance, by
Franchisee or COO as the new franchisee under the Franchise Documents, and the Companies
and Comcast shall not raise a claim to the contrary.
Transfer Agreement — Charter to Comcast
Page 2
2.3 The City agrees that this Agreement is without prejudice to or waiver of the
Franchisee's or COO's rights to defend any claim of default or non-compliance with the
Franchise Documents on the basis that such default or non-compliance has not occurred, or has
been cured or from raising any other defense.
3. ADDITIONAL CONDITIONS
3.1 In the event the Proposed Transaction described in the Transfer Application does
not close by June 30, 2015, or closes on terms that are in any material respect different from the
terms disclosed to the City in writing, then any City consent to the Transfer Application shall be
voidable by the City and of no force or effect if so voided, and the Transfer Application shall be
deemed to have been timely denied if so voided.
3.2 The Companies, COO, and Comcast waive any and all claims that they may have
that any denial of the Transfer Application that may result from Subsection 3.1 fails to satisfy the
deadlines established by applicable law including, without limitation, claims based on, arising
out of, or relating to the time limits set forth in 47 USC § 537, as amended, or 47 CFR §
76.502(a), and agree that they shall be deemed to have agreed to an extension of time for the City
to act on the Transfer Application within the meaning of 47 CFR § 76.502(c) as required to make
any denial effective.
4. ADDITIONAL AGREEMENTS OF THE PARTIES
4.1 The City reserves all rights not expressly granted in this Agreement. In particular
and without limitation:
4.1.1 Neither this Agreement, nor any other action or omission by the City at or
before the execution of this Agreement, shall be construed to grant the City's consent to any
future transfer of the Franchise, and/or change in ownership and/or control of the Franchisee, or
to mean that the City's consent to any such future transfer is not required.
4.1.2 The City's consent to the Transfer Application shall not constitute a
waiver or release of any of the City's rights or claims with respect to Franchisee's compliance
(or non-compliance) with the terms, conditions, requirements and obligations set forth in the
Franchise Documents, whether arising before or after the date of the Transfer Resolution or
consummation of the Proposed Transaction. The City's approval of the Transfer Application
shall in no way be deemed an agreement or concession by the City that Franchisee is in
compliance with all of its obligations under the Franchise Documents.
4.1.3 The City, in collaboration with the City of Richland (collectively
"Cities"), has been engaged in a franchise renewal process with the Franchisee pursuant to 47
USC 546 (a) — (h). On July 31, 2013, the Cities proceeded with the Cable Act's formal renewal
process and issued an RFRP. On December 30, 2013, the Franchisee submitted a formal renewal
proposal in response to the RFRP issued by the Cities ("Renewal Proposal"). In order to permit
further time for informal renewal negotiations, the parties entered into an agreement tolling the
formal renewal process, which expires on September 30, 2015.
4.1.4 Comcast and COO shall not contend that the City is barred, by reason of its
consent to the Transfer Application, from considering or raising any claim based on Franchisee's
past or present failure to comply with any term or condition of the Franchise Documents or
applicable law, including, without limitation, any unpaid franchise fees lawfully due the City
from Franchisee, any known and unresolved consumer complaints, and any construction,
Transfer Agreement — Charter to Comcast
Page 3
security or facility requirements of the Franchise Documents that are unsatisfied, and regardless
whether any such claim arose before or after the date of the Transfer Resolution or
consummation of the Proposed Transaction.
4.1.5 Comcast and COO agree to assume all risks associated with any future non-
renewal or non -extension or other potential termination of the Franchise, and further agree that
they will not raise any claim or defense that they are entitled to renewal or protected from
revocation by the City's approval of the Proposed Transaction.
4.1.6 Except as otherwise expressly provided for herein, this section 4 is without
prejudice to the Companies' and Comcast's rights to defend any claim of default or non-
compliance with the Franchise Documents on the basis that such default or non-compliance did
not occur, or has been cured, or from raising any other defense.
5. RATES
5.1 Comcast and COO further agree that neither the Proposed Transaction, the
Transfer Application consent process, the City's Resolution granting conditional consent to the
Proposed Transaction, nor this Transfer Agreement, standing on its own or collectively, provides
any basis for increasing the amounts paid by subscribers through cost pass-through as so-called
"external costs" or as new franchise requirements, and neither the City's consent process nor the
City Council resolution granting conditional consent, standing on its own or collectively,
provides any basis for increasing the amounts paid by subscribers in any manner.
6. REPRESENTATIONS AND WARRANTIES
6.1 The Companies, Comcast, and COO acknowledge the City's representation that
its consent to the Transfer Application is made in reliance upon the representations, documents,
and information provided by the Companies and Comcast in connection with the Transfer
Application and supplemental information thereto.
6.2 Comcast, COO, and the City represent and warrant that the Proposed Transaction
is not based on any representation by the City (other than as provided by federal and state law)
that the Franchise will be renewed or extended; that Comcast and COO assume all risks
associated with any future non -renewal or non -extension of the Franchise; and that the
Companies and Comcast and COO retain all rights, claims, and defenses they or their
predecessors may have regarding the operation of the cable system under applicable law,
including under 47 USC § 546.
6.3 Comcast represents and warrants that the Proposed Transaction will not in any
respect adversely affect COO's ability to meet the lawful and valid requirements of the Franchise
Documents.
6.4 Comcast and COO agree they will not file a request under Section 625 of the
Cable Act with the City seeking modification of any existing franchise requirements as a result
of any increase in debt service, debt service coverage or equity requirements incurred in
connection with the Proposed Transaction.
Transfer Agreement — Charter to Comcast
Page 4
6.5 The Companies, Comcast, and COO acknowledge that the City has not
undertaken a franchise compliance audit as a part of its review of the Transfer Application and
that there may be issues related to Franchisee's possible non-compliance with the Franchise
Documents that are not known to the City at this time. Pursuant to Section 2.1 of this
Agreement, Comcast, COO, and the Companies agree that COO as the new franchisee shall be
bound by and liable for all the commitments, duties, and obligations, past, present, continuing
and future, of Franchisee embodied in the Franchise Documents, to the maximum extent
permissible by law, and that the City's action to approve the Transfer Application shall not be
interpreted as, or deemed to be, a waiver of the City's rights to enforce the Franchise Documents,
regardless whether any claim by the City relating to any failure by Franchisee to comply with the
Franchise Documents arose before or after the date of this Agreement.
7. INDEMNIFICATION
7.1 The Companies agree to indemnify and hold the City harmless against any loss,
claim, damage liability or expense (including, without limitation, reasonable attorneys' fees)
proximately caused by any representation or warranty made by the Companies herein which
proves to be untrue or inaccurate in any material respect.
7.2 Comcast and COO agree to indemnify and hold the City harmless against any
loss, claim, damage liability or expense (including, without limitation, reasonable attorneys'
fees) proximately caused by any representation or warranty made by Comcast or COO herein
which proves to be untrue or inaccurate in any material respect.
8. BREACHES
8.1 Any breach of this Transfer Agreement shall be deemed a breach of the Franchise
Documents.
9. MISCELLANEOUS PROVISIONS
9.1 Effective Date: This Agreement shall be effective and binding upon the parties
upon closing of the Proposed Transaction.
9.2 Entire Agreement: This Agreement constitutes the entire agreement of the parties
with respect to the matters addressed herein. No statements, promises or inducements
inconsistent with this Agreement made by any party shall be valid or binding, unless in writing
and executed by all parties. This Agreement may only be modified by written amendments
hereto signed by all parties.
9.3 Binding Acceptance: Any purported assignment of this Agreement or the rights
or privileges of any party hereunder is void without the express written consent of the signatories
hereto. Subject to the foregoing, this Agreement shall bind and benefit the parties hereto and
their respective and permitted heirs, beneficiaries, administrators, executors, receivers, trustees,
successors and assigns, and the promises and obligations herein shall survive the expiration date
hereof.
Transfer Agreement — Charter to Comcast
Page 5
9.4 Voluntary Agreement: This Agreement is freely and voluntarily agreed to by
each party, without any duress or coercion, and after each party has consulted with its counsel.
Each party has carefully and completely read all of the terms and provisions of this Agreement.
Neither the Companies nor Comcast, nor any of their affiliates, nor the City, will take any action
to challenge any provision of this Agreement; nor will any of them participate with any other
person or entity in such action.
9.5 Drafting: This Agreement is a product of common negotiation among the parties
and shall not be construed against any party on grounds relating to drafting, revision, review or
recommendation by any agent or representative of such party.
9.6 Counterparts: This Agreement may be executed in several counterparts, each of
which when so executed shall be deemed to be an original copy, and all of which together shall
constitute one agreement binding on all parties hereto, notwithstanding that all parties shall not
have signed the same counterparts.
9.7 Governing Law: This Agreement shall be governed in all respects by the law of
the State of Washington.
9.8 Captions and References: The captions and headings of sections throughout this
Agreement are intended solely to facilitate reading and reference to the sections and provisions
of this Agreement. Such captions shall not affect the meaning or interpretation of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Transfer Agreement as
of the day and year first above written.
APPROVED:
City of Pasco
Dave Zabell, City Manager
ATTEST
Debbie Clark, City Clerk
APPROVED AS TO FORM
Leland Kerr, City Attorney
Falcon Video Communications, L.P
Title:
Charter Communications, Inc.
Title:
COO Transfers, LLC.
Title:
Comcast Corporation
Transfer Agreement — Charter to Comcast
Page 6
FRANCHISE GUARANTY
Comcast Corporation ("Comcast"), a Pennsylvania corporation, is delivering this
Franchise Guaranty in connection with, and in consideration for the City of 's
("City") conditional consent to the assignment and transfer of control of the entity
("Franchisee") holding the Cable Franchise Agreement, dated as of , as amended
and as may hereinafter be amended or renewed (the "Franchise"), with the City. Comcast
hereby guarantees to the City that: (i) the Franchisee will timely comply with the
Franchise and all applicable city, state and federal laws, regulations, codes, standards and
administrative or judicial decisions ("Applicable Laws"); (ii) the Franchisee will pay all
fees, taxes, damages, judgments, costs or expenses ("Liabilities") owed to the City as a
result of Franchisee's failure to timely comply with the Franchise or Applicable Laws;
(iii) in the event the Franchisee fails to comply with or satisfy any such obligations,
Comcast will promptly cause Franchisee to cure such nonperformance or pay such
Liabilities, or Comcast will itself make good on any such nonperformance or Liabilities
beyond the ability or willingness of the Franchisee to cure or pay, including without
limitation any and all past, present and future Liabilities under the Franchise, in the same
capacity as the Franchisee; and (iv) Comcast will not interfere directly or indirectly with
the Franchisee's ability to comply, nor will it directly or indirectly cause Franchisee to
fail to comply, with the Franchise or Applicable Laws.
EXECUTED as of the day of. 2014.
COMCAST CORPORATION
By: _
Name:
Title:
Address:
1701 JFK Boulevard
Philadelphia, PA 19103
Attention: General Counsel
STATE OF )
ss.
COUNTY OF )
The foregoing Franchise Guaranty
2014, by the _
act and deed of Comcast Corporation.
Seal
was acknowledged before me this _ day of
of Comcast Corporation, to be the
Notary Public
AGENDA REPORT
FOR: City Council November 12, 2014
TO: Dave Zabell, City Manager Regular Mtg.: 11/17/14
FROM: Rick White, U
Community & Economic Development Director
SUBJECT: Downtown Pasco Development Authority (DPDA) Funding Aareement
I. REFERENCE(S):
1. DPDA Funding Agreement —Proposed Funding Agreement for 2015 — 2016
2. DPDA Funding Agreement — Request for 2014
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
11/17: MOTION: I move to approve the 2015 — 2016 Funding Agreement with the
DPDA and further, authorize the City Manager to execute the
Agreement
III. FISCAL IMPACT:
Approximately $120,000 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.
E. Council reviewed the proposed agreement for 2015 — 2106 at the 10/8/14 Council
Workshop and generally concurred with the funding arrangements.
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.
10(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 privateibusiness 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.
DOWNTOWN PASCO DEVELOPMENT AUTHORITY
FUNDING AGREEMENT
THIS AGREEMENT is made and entered into this day of
2014, 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 received a certificate of incorporation from the State of
Washington as a non-profit corporation; and
WHEREAS, 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 Pasco Farmers Market and
Pasco Commercial Kitchen, 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";
and
WHEREAS, DPDA tasks for 2015 and 2016 include obtaining Main Street
Certification, implementation of the "Passport to Pasco Rewards Program," establishment of a
scholarship grant program consistent with the DPDA's 501kc)(3) status, business outreach efforts
including a marketing/fundraising program and analysis of the feasibility of a "year round"
Farmers Market and other tasks identified in the 5 Year Strategic Work Plan; and
WHEREAS, DPDA has requested that additional City funding be made available to
develop resources to eventually reduce the amount of the City subsidy; 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 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.
DPDA Funding Agreement - 1
• 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.
• 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 up to $10,000 by the 10`h
day of each month.
Section 3: Term
This agreement shall be effective January 1, 2015 and shall expire on December 31,
2016; 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. It is further provided
that this agreement is predicated on the DPDA receiving Main Street status for calendar years
2015 and 2016 and the City's contribution, as described in Section 2, is deemed eligible for Main
Street tax credits by the State Department of Revenue.
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.
DPDA Funding Agreement - 2
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this , day of 2014.
CITY OF PASCO
DOWNTOWN PASCO DEVELOPMENT
AUTHORITY
Dave Zabell, City Manager Michael Miller, President
DPDA Funding Agreement - 3
downtown pasco
�'6vGLQP"�EI�T .'� IuC�f+�Ti
Rick White
Director of Community and Economic Development
525 N 3rd 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 its funding 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
Executive Director
C
Michael Miller
DPDA Chair