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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 ? 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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 $$ §pry d lg ¢ Is 4!'Y' je(pyg i - • Yl'1 5�j g;E •.o•�• ydt- i s 9 tl11,&bt5 IN pE 5, 11 4!':ENH ,t 1 •� T.. 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R i 1 �� 6g#5"tips Ram ;a ___. __-J G Q $$ §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