HomeMy WebLinkAbout2015.01.12 Council Workshop PacketAGENDA
PASCO CITY COUNCIL
Workshop Meeting 7:00 p.m. January 12, 2015
1. CALL TO ORDER
2. ROLL CALL:
(a) Pledge of Allegiance.
3. VERBAL REPORTS FROM COUNCILMEMBERS:
4. ITEMS FOR DISCUSSION:
(a) Waiver of Sewer Utility Service Requirement (ME# USW 2014-004):
1. Agenda Report from Rick White, Community & Economic Development Director dated
January 6, 2015.
2. Sewer Waiver - Vicinity Map.
3. Sewer Waiver -Overview Map.
4. Sewer Waiver -Proposed Utility Service Waiver Agreement.
(b) Annexation RD 80 Area:
1. Agenda Report from Rick White, Community & Economic Development Director dated
January 7, 2015.
2. Annexation RD 80 Area - Boundary Map.
3. Annexation RD 80 Area - Vicinity Map.
(c) Certified Local Government Agreement (MF# PLAN 2014-001):
1. Agenda Report from Jeffrey B. Adams, Associate Planner dated January 7, 2015.
2. Certified Local Government - 2015 Agreement.
(d) HOME Consortium Subrecipient Agreements for 2014 Administration and Down
Payment Assistance (DPA):
1. Agenda Report from Angela R. Pitman, Block Grant Administrator dated January 5, 2015.
2. Proposed Resolution.
3. Subrecipient Agreements for Down Payment Assistance and Administration.
(e) Argent Road Widening Professional Services Agreement - Amendment No. 1:
1. Agenda Report from Ahmad Qayoumi, Public Works Director dated January 7, 2015.
2. Argent Road Widening - Amendment No. 1 Summary Sheet.
3. Argent Road Widening - Area Vicinity Map.
4. Argent Road Widening -Argent Rd/Rd 36 Intersection Map.
(f) 9th & Washington Lift Station VFD Equipment:
I . Agenda Report from Kent McCue, Interim Engineering Manager dated January 8, 2015.
2. 9h & Washington VFD Equipment - Proposed Resolution.
3. 9h & Washington VFD Equipment - Price Quote.
4. 9th & Washington VFD Equipment -Memo.
5. 9h & Washington VFD Equipment - Vicinity Map.
(g) Canter Club Estates Latecomers Agreement:
1. Agenda Report from Kent McCue, Interim Engineering Manager dated January 8, 2015.
2. Canter Club Estates - Proposed Agreement.
3. Canter Club Estates - Memorandum from Michael A. Pawlak, PE, City Engineer.
(h) Gesa Stadium Upgrades:
1. Agenda Report from Rick Terway, Administrative & Community Services Director dated
January 7, 2015.
2. Gesa Stadium Upgrades - Amendment # 2.
3. Gesa Stadium Upgrades - Section 6.3.
5. OTHER ITEMS FOR
(a)
(b)
(e)
6. EXECUTIVE SESSION:
(a)
(b)
(c)
Workshop Meeting 2 January 12, 2015
7. ADJOURNMENT
REMINDERS:
1. 6:00 p.m., Monday, January 12, Conference Room #1 — Old Fire Pension Board Meeting
(COUNCILMEMBER REBECCA FRANCIK, Rep.; SAUL MARTINEZ, Alt.)
2. 3:30 p.m., Wednesday, January 15, FCEM Office — Franklin County Emergency Management Board
Meeting. (MAYOR MATT WATKINS, Rep.; COUNCILMEMBER TOM LARSEN, Alt.)
AGENDA REPORT
FOR: City Council January 6, 2015
TO: Dave Zabell, City Manager Workshop Mtg.: 1/12/2015
Regular Mtg.: 1/20/2015
FROM: Rick White, 1--7
Community & Economic Development Director 0
SUBJECT: Waiver of Sewer Utility Service Requirement (MF# USW 2014-004
I. REFERENCE(s):
1. Sewer Waiver — Vicinity Map
2. Sewer Waiver — Overview Map
3. Sewer Waiver — Proposed Utility Service Waiver Agreement
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS:
1/12:
1/20: MOTION: I move to conditionally approve the sewer utility service waiver at
1209 Road 62 and authorize the City Manager to execute the
waiver agreement.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A. The applicant has applied for a utility service waiver to install a septic system for
new construction of a single family dwelling at 1209 Road 62 on an existing lot.
PMC 16.06 requires connection to the utility system when a building permit is
issued unless such requirement is waived by action of City Council.
B. Utility waivers are granted/denied by City Council in accord with the
requirements of PMC 16.06.050. This section of the PMC requires that City
Council base their decision on the following criteria:
• Special circumstances applicable to the property in question or the
intended use that do not generally apply to either properties or classes of
uses in the same vicinity or zoning classification.
• A waiver is necessary for the preservation and enjoyment of a substantial
property right or use possessed by other properties in the same vicinity and
same zoning classification, which because of special circumstances is
denied to the property in question.
• The granting. of the waiver will not be detrimental to the public welfare or
egregious to other property improvements in such vicinity and zoning
classification, which the subject property is located.
• The granting of a waiver will not conflict with the general intent of this
chapter.
C. The above criteria contained in PMC 16.06.050 is established to measure unusual
or unique circumstances peculiar to a certain property that would justify waiver of
a requirement for utility connections similar to the way a land use variance would
be evaluated.
M
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V. DISCUSSION:
A. Presently, the nearest existing sewer line is approximately 389 feet from the
applicant's property and it is not cost effective for a private party or the City to
provide for the extension of such line at this time.
B. Single family homes in this vicinity have been developed with septic systems on
roughly two -acre lots. The subject site was recently created by dividing one
approximately two -acre parcel while under city jurisdiction. A local improvement
district to extend sewer to this part of Pasco is not likely in the near future due do
the existing development pattern in the area.
C. Standards for septic systems are administered through the Benton Franklin Health
Department and will apply to the installation of septic systems on this property. It
is not expected that the waiver will be detrimental to public health or welfare in
this vicinity.
D. The granting of a waiver will not conflict with the intent of Chapter 16.06 of the
PMC. The significant costs associated with sewer line extension and the
unlikelihood of a local improvement district in the near future leads staff to
recommend that a sewer connection waiver be granted for the property.
Vicinity Item: Sewer Waiver
Ma Applicant: Muhlbeier N
Map File #: USW2014-004
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WHEN RECORDED RETURN TO:
City of Pasco, Washington
Engineering Department
525 North 3rd Avenue
Pasco, WA 99301
UTILITY SERVICE WAIVER AGREEMENT
(CHAPTER 16.06 PMC)
1) The undersigned is the owner of the real property situated in Franklin County, Washington
addressed as 1209 Road 62 and described as:
Tax Parcel (parent) #: 119-651-085
Legal: Lot 2, Short Plat 2014-38, according to the Plat thereof recorded
in Volume 1 of Plats Page 987, records of Franklin County
Auditor's Office, Washington
2) The undersigned has made application for waiver of the utility service requirements of Chapter
16.06 PMC and the Pasco City Council has by motion approved said waiver based on the
following Findings:
a) Presently, there is no sewer service provided near the property. The nearest existing sewer
line is approximately 389 feet from the applicant's property and it is not cost effective for a
private party or the City to provide for the extension of such line.
b) Standards for septic systems are administered through the Benton Franklin Health
Department and will apply to the installation of septic systems on this property. It is not
expected that the waiver will be detrimental to public health or welfare in this vicinity;
c) Single family homes in this vicinity have been developed with septic systems on roughly two
acre lots. The subject site was recently created by dividing one approximately two -acre
parcel. A local improvement district to extend sewer to this part of Pasco is not likely in the
near future due do the existing development pattern in the area;
d) The granting of a waiver will not conflict with the intent of Chapter 16.06 of the PMC. The
significant costs associated with sewer line extension, the timeframe expected for the
provision of infrastructure to allow the area to be served by city sewer, and the unlikelihood
of a local improvement district in the near future support the granting of a waiver for
connection to the city sewer system for the property.
UTILITY SERVICE WAIVER AGREEMENT (MF# USW2014-004)
In consideration of the mutual covenants contained herein, the sufficiency of which are
hereby acknowledged, the parties agree as follows:
3) The City waives connect of the above described property to the City sanitary sewer system prior
to granting of a development permit as required by PMC 16.06.010 until such time as the utility
services are available as defined in PMC 16.06.010 or the basis for the waiver as provided in
PMC 16.06.050 ceases to exist.
4) The waiver is conditioned upon the undersigned making the following agreements and
acknowledgments with the City, which the undersigned does hereby freely and voluntarily
make:
a) The undersigned agrees to provide the City of Pasco with all necessary Health District
approvals for the use of a septic tank system at the above referenced property;
b) The undersigned acknowledges that the granting of a sewer utility waiver does not exempt
him/her from any obligation that results from the formation of a Local Improvement District
to provide sanitary sewer and water to the undersigned's property;
c) The owners jointly and severally hereby (1) make, constitute and appoint the City as the
owners' true and lawful attorney in fact for them in their name, place and stead and as an
irrevocable proxy to sign a petition for the formation of a local improvement district or utility
local improvement district ("LID") hereafter to be formed by the City or its successors for
the improvement that will provide utilities available for the benefit of the real property
describe above and (2) waive their right under RCW 35.43.180 to protest formation of such
LID for such improvements. The property owners reserve and retain the right to object to the
amount of the LID assessment levied against the property and to appeal that assessment to
the Franklin County Superior Court;
d) The undersigned shall pay an equitable share of any private sewer utility extensions abutting
the undersigned's property;
e) This Agreement shall be a conveyance of an irrevocable interest in land and the owners do
by these presents convey to the City such limited interest in the property. The above
covenants to the City shall run with the land and be binding on the owner, on the
undersigned, his/her heirs, devisees, successors and assigns and all owners now or hereafter
of the land above described, or of any of said land described above;
f) A violation of any of the above covenants may be enjoined and the same enforced at the suit
of the City with attorney fees awarded to the substantially prevailing party,
g) The owners do hereby warrant that the persons named as "property owner" on the signature
lines below are all of the persons or entities having any interest in the property and that they
have full power to execute this Agreement.
UTILITY SERVICE WAIVER AGREEMENT (MF# USW2014-004)
This utility waiver and agreement has been approved by the Pasco City Council on day of
20
Signature of Legal Property Owner(s)
STATE OF WASHINGTON )
ss.
County of Franklin
On this day personally appeared before me , to be known
to be the individual(s) described in and who executed the within and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed for the uses and
purposes therein mentioned.
GIVEN under my hand and official seal this day of , 20_
NOTARY PUBLIC in and for the State of Washington
Residing at:
My Commission Expires:
Signature of Legal Property Owner(s)
STATE OF WASHINGTON )
ss.
County of Franklin
On this day personally appeared before me , to be known
to be the individual(s) described in and who executed the within and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed for the uses and
purposes therein mentioned.
GIVEN under my hand and official seal this day of 20_.
NOTARY PUBLIC in and for the State of Washington
Residing at:
My Commission Expires:
UTILITY SERVICE WAIVER AGREEMENT (MF# USW2014-004)
.............................................. a ...................... ..MENS....
This utility service waiver and agreement has been approved by the Pasco City Council on
_ day of 20_
Dave Zabell, City Manager
STATE OF WASHINGTON )
ss.
County of Franklin )
On this day personally appeared before me, Dave Zabell, City Manager, to be known to be
the individual(s) described in and who executed the within and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed for the uses and
purposes therein mentioned.
GIVEN under my hand and official seal this day of 20_.
NOTARY PUBLIC in and for the State of Washington
Residing at:
My Commission Expires:
UTILITY SERVICE WAIVER AGREEMENT (MF# USW2014-004)
AGENDA REPORT
FOR: City Council January 7, 2015
++"-_- Workshop Mtg.: 1/20/15
TO: Dave Zabell, City Manager n� Regular Mtg.: 1/12/15
FROM: Rick White,
Community & Economic Development Director
SUBJECT: Annexation RD 80 Area
I. REFERENCE(S):
1. Annexation RD 80 Area - Boundary Map
2. Annexation RD 80 Area— Vicinity Map
II. ACTION REQUESTED OF COUNCH./STAFF RECOMMENDATIONS:
1/12: DISCUSSION
1/20: MOTION: I move to authorize staff to initiate formation of an ad hoc citizen
committee to analyze the impact of annexation on properties in the
RD 80 Area.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
A. With City and County approval, the Pasco Urban Growth Area (UGA) was adopted in
1995 and joint zoning standards were adopted in 1999. The UGA serves as an important
tool for effective capital investment and financial planning. The City relies on this
boundary to make investments in water and sewer plants and facilities, fire stations, parks
and road maintenance operations and equipment. An example of such a capital
investment for eventual use in the Riverview unincorporated island is the City's Fire
Station on Road 68 just north of Argent.
B. The City has also installed utility and transportation infrastructure to serve the entire
UGA. When City water service (and recently sewer service) has been extended to
properties outside the City limits but within the UGA, the extension has been conditioned
on agreements (binding on successor owners), granting the City the power of attorney to
sign a future annexation petition on behalf of the property owner.
C. Through the accumulation of outside utility agreements/powers of attorney over several
years, the boundaries of a potential annexation area west of RD 80 have been identified
and annexation of this area is now possible.
D. Though challenged by a group of "donut hole" residents, a ballot issue in November 2013
resulted in city voters (and in excess of 60% of the annexed area voters) confirming that
Annexation Area #2 should remain part of Pasco.
E. Council adopted Resolution 3552 in May of 2014 expressing Council goals for calendar
years 2014 — 2015. Goal #11 of that Resolution express the City's goal to reduce the size
of the unincorporated "donut hole" through continued orderly annexation.
V. DISCUSSION
A. The RD 80 area as shown on Reference #1 is that portion of Pasco's UGA that is not yet
incorporated but is able to be annexed through the use of outside utility
agreements/powers of attorney. It has an assessed value of approximately $156,700,000,
is surrounded by City limits and City utilities extend to much of the area. RD 80 Area
residents use City streets for access to their homes and businesses, City police continually
drive through this area while on patrol, and residents participate in City recreational
programs and use City parks.
4(b)
B. An important part of paying for these services and facilities is property tax the City
receives. County residents do not contribute payment of property tax for use by the City,
and fees and charges for services are often not set to recover their full cost.
C. Potential annexation of the RD 80 Area would result in increased revenues from property
and utility taxes and State shared revenue. There would be loss of revenue from the
surcharge on water and an overall (although moderate) increase of expenditures for
governmental service (police, fire and general government).
D. Formation and use of a citizen committee to analyze impacts to properties and residents
of any potential annexation area is seen as an important step to objectively identify (by
citizens not necessarily staff) positive or negative impacts of annexation. Such a citizen
committee was formed and used for that purpose in conjunction with the Area #2
Annexation in late 2012. Staff requests Council concurrence to solicit members for such
a committee with the intent of providing the Mayor a list of potential candidates for
appointment.
E. This activity is predicated on Council's willingness to proceed with an annexation process
for this area with conclusion of such a process before August of this year. Staff would
benefit from Council discussion and direction on this issue.
AGENDA REPORT
FOR: City Council January 7, 2015
TO: Dave Zabell, City Manager/5 Workshop Mtg.: 1/12/15
Rick White, Regular Meeting: 1/20/15
Community & Economic Development Dire
ctor,44
FROM: Jeffrey B. Adams, Associate Planner
SUBJECT: Certified Local Government Agreement (MF# PLAN 2014-001)
I. REFERENCE(S)-
1. Certified Local Government— 2015 Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
1/12: DISCUSSION
1/20: MOTION: I move to approve the Certified Local Government Agreement
with the Washington State Department of Archaeology and
Historic Preservation (DAHP), and, finther, authorize the Mayor
to execute the agreement.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A. One of Council's 2012-2013 goals was to "assist the Historic Preservation
Commission :with the development of a Historic Preservation Plan for the City." In
November of 2013 the City approved a Historic Preservation Work Plan (Resolution
3521), which includes an action item to obtain approval as a Certified Local
Government (CLG).
B. City Council approved an amended Title 27 Historic Preservation (Ordinance 4178)
in October 2014 in partial fulfilment of the CLG application requirements. The
Historic Preservation Commission subsequently updated its Bylaws to align with the
revised Ordinance.
C. Finally, City Planning staff submitted Commissioner and staff resumes, along with a
letter detailing the City's HPC recruitment efforts to the Washington State
Department of Archaeology and Historic Preservation (DAHP) to complete the
Certified Local Government application.
V. DISCUSSION:
A. Local governments that establish a historic preservation program which meets federal
and state standards are eligible to apply to the State Historic Preservation Officer
(SHPO) and the National Park Service for certification. A local government that
receives such certification is known as a "Certified Local Government."
B. Benefits of participating in the program include eligibility to apply for special grants
from the State Historic Preservation Office (SHPO), authority to offer Special Tax
Valuation to locally listed properties, technical assistance and training from the
SHPO, access to the national historic preservation. assistance network, and to the State
Historic Preservation Office data exchange. CLGs are expected to maintain a historic
preservation commission, maintain a survey of local historic properties, enforce local
preservation laws, review National Register Nominations, and engage the public in
historic preservation activities.
C. Among the requirements for CLG status are passage of a Historic Preservation
Ordinance, adoption of a Historic Preservation Commission with qualified
commissioners, and adoption of HPC Bylaws.
4(c)
D. Staff has guided these efforts through the HPC and City Council, and the Department
of Archaeology and Historic Preservation has accepted the application and has sent
the attached Certified Local Government Agreement to the City for approval.
E. In addition, the CLG Agreement requires the City to do the following:
a. Enforce appropriate state or local legislation for the designation and protection
of historic properties.
b. Maintain a system for the survey and inventory of historic properties, and
employ the use of Statewide Historic Property Inventory Online Entry System
for future survey work within the City of Pasco.
c. Provide for adequate public participation in the local preservation program,
including the process of recommending properties to the National Register.
d. Employ sufficient professional staff to carry out its federal historic
preservation responsibilities.
e. Adhere to requirements outlined in the State of Washington's Certified Local
Government Program Requirements and Procedures, as amended 2002, issued
by the Department of Archaeology and Historic Preservation.
F. If Council concurs with the proposed agreement, it should be approved.
CERTIFICATION AGREEMENT
Pursuant to the provisions of the National Historic Preservation Act, as amended, to applicable
federal regulations (36 CFR 61), and to the State of Washington's Certified Local Government
Program Requirements and Procedures, as amended 2002, the City of Pasco agrees to:
1. Enforce appropriate state or local legislation for the designation and protection of historic
properties [Section 101(c)(1)(A)].
2. Establish an adequate and qualified historic preservation review commission by state or
local law [Section 101(c)(1)(13)].
3. Maintain a system for the survey and inventory of historic properties [Section 101(c)(1)(C)].
Employ the use of Statewide Historic Property Inventory Online Entry System for future
survey work within the City of Pasco.
4. Provide for adequate public participation in the local preservation program, including the
process of recommending properties to the National Register [Sections101(c)(1)(1)),
(c)(2)(A) and (c)(2)(13)]•
5. Satisfactorily perform the responsibilities delegated to it under the National Historic
Preservation Act, as amended [Section 101(c)(1)(E)].
6. Employ sufficient professional staff to carry out its federal historic preservation
responsibilities.
7. Adhere to requirements outlined in the State of Washington's Certified Local Government
Program Requirements and Procedures, as amended 2002, issued by the Department of
Archaeology and Historic Preservation.
Upon its designation as a Certified Local Government, the City of Pasco shall be eligible for all
rights and privileges of a Certified Local Government specified in the Act, federal procedures, and
the procedures of the State of Washington. These rights include eligibility to apply for available
CLG grant funds in competition only with other Certified Local Governments.
The following signatures imply consent to this Certification Agreement and any attachments
herein.
STATE:
Allyson Brooks, Ph.D. Director
State Historic Preservation Officer
LOCAL GOVERNMENT:
Matt Watkins, Mayor
City of Pasco
Date Date
AGENDA REPORT
FOR: City Council January 5, 2015
TO: David Zabell, City ManageWorkshop Mtg.: 1/12/15
Rick White, l!/I� V� Regular Mtg.: 1/20/15
Community & Economic Development Director
FROM: Angela R. Pitman, Block Grant Administrator COO
SUBJECT: HOME Consortium Subrecinient Agreements for 2014 Administration and Down
Payment Assistance (DPA)
L REFERENCE(S):
1. Proposed Resolution
2. Subrecipient Agreements for Down Payment Assistance and Administration
H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
1/12: DISCUSSION
1/20: MOTION: I move to approve Resolution No. , authorizing the City Manager
to execute the 2014 Administrative and Down Payment Assistance
Subrecipient Agreements with the Tri -Cities HOME Consortium Lead
Agency.
III. FISCAL IMPACT:
Pasco's current and future share of federal HOME entitlement funds ($200,000 for Program Year
2014), and administrative funds from Program Income when received.
IV. HISTORY AND FACTS BRIEF:
A. Pasco entered into a HOME consortium agreement with Richland and Kennewick in
1995, making the city eligible for federal HOME funds. The populations of the
individual cities alone do not meet the U.S. Department of Housing and Urban
Development (HUD) minimum. By joining together in a consortium, funds are available
to the three cities. The original consortium agreement ran from 1995 through 1998. In
2007, the agreement was amended to renew automatically unless one of the cities objects.
B. Per HUD regulations the Lead Agency (Richland) is required to execute subrecipient
agreements with each member city, which authorizes each member city to cavy out
projects on behalf of the Consortium.
C. The requirement for subrecipient agreements formalizes Pasco's relationship to the Lead
Agency. Without the subrecipient agreements, only the Lead Agency is authorized to
expend funds and carry out projects.
V. DISCUSSION:
A. In November, the 2014 subrecipient agreements were revised, beginning with 2014 grant
funds forward, as follows:
• DPA awards will be converted from loans to grants.
• DPA loans to be standardized and capped at $10,000 per household (depending
on need).
• In the event that any consortium -wide administrative shortfalls occur, the cost of
such shortfalls shall be shared equally by all members. Members agree that
compliance with new standardized forms, checklists, and processes are required
in order to keep the administrative costs to currently projected levels.
■ In the event that negative interest occurs as a result of the action(s) of a particular
Member, then that Member is fully responsible for reimbursing the Lead Entity;
However, if negative interest occurs that's not directly related to a single
Member's actions, then each Member shall equally share in that cost.
• Funding timelines are reduced to allow time to redirect funds to other areas prior
to timeliness becoming an issue.
B. As the proposed 2014 subrecipient agreement reflects the consensus of each member city
and will reduce administrative effort and costs for all, staff recommends Council / a
approval. to)
RESOLUTION NO.
A RESOLUTION APPROVING THE 2014 SUBRECIPIENT AGREEMENTS FOR HOME
PROGRAMS AND AUTHORIZING THE CITY MANAGER TO EXECUTE HOME
CONSORTIUM SUBRECIPIENT AGREEMENTS FOR PROGRAM YEARS 2014
WHEREAS, the Cities of Kennewick, Pasco and Richland entered into a cooperative agreement
to form a consortium to increase the local supply of decent affordable housing to low income residents as
authorized by Public Law 101-625, the National Affordable Housing Act of 1990 (NAHA); and
WHEREAS, Council has previously approved HOME programs contained in Consolidated Plan
for program years 2015-2019; and
WHEREAS, each program year Council approves programs to be carried out in the supplemental
Annual Action Plan, and
WHEREAS, HUD regulations require subrecipient agreements between the HOME Consortium
Lead Agency and the City of Pasco authorizing the City to cant' out programs, expend funds and execute
agreements; and
WHEREAS, HUD has further advised that subrecipient agreements for past, current and future
years and for each type of program will be required, NOW THEREORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
That the City Council approves subrecipient agreements for City of Pasco HOME programs to be
executed for program year 2014 to increase the supply of decent and affordable housing to low income
residents, and authorizes the City Manager to execute them.
BE IT FURTHER RESOLVED that this Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco this day of January, 2015
Matt Watkins
Mayor
ATTEST:
Debra L. Clark
MMC City Clerk
APPROVED AS TO FORM:
Leland B. Kerr
City Attorney
TRI -CITIES HOME CONSORTIUM
SUBRECIPIENT WRITTEN AGREEMENT
DOWNPAYMENT ASSISTANCE MANAGED BY SUBRECIPIENT
March 4, 2014
This HOME Program Subrecipient Agreement is made and entered into as of the _
day of , 20 , between the City of Richland, Lead Entity of the Tri -Cities
HOME Consortium, 505 Swift Avenue, Richland, Washington, hereinafter referred to as
"Consortium," and , a member City of the Consortium, whose
address is hereinafter referred to as "Subrecipient." This Agreement
is authorized by Title II, Sections 216 and 217 of the Cranston -Gonzalez National Affordable
Housing Act of 1990, as amended, and the correlating federal regulations found at 24 CFR Part
92, together known as the HOME Investment Partnerships (HOME) Program.
W -1 -T -N -E -S -S -E -T -H:
I. RECITALS
WHEREAS, the Federal Government has made funds available to the Consortium
pursuant to the HOME Program CFDA 14.239 to increase the number of families, especially low
income families, served with decent, safe, sanitary and affordable housing, and to expand the
long term supply of affordable housing; and
WHEREAS, the Consortium seeks to invest a portion of its HOME allocation to support
affordable home ownership opportunities through the provision of Downpayment Assistance to
eligible homebuyers; and
WHEREAS, the HOME Program authorizes contracts with public agencies to carry out
the objective identified above; and
WHEREAS, the City of Richland has been designated as the Lead Entity of the Tri -Cities
HOME Consortium as delineated in the 'Tri -Cities HOME Consortium Agreement" and
WHEREAS, the Lead Entity is responsible for the distribution of funds to the
Subrecipient(s) who manage projects utilizing said HOME funds; and
WHEREAS, the Lead Entity is also responsible for monitoring, reporting, and record-
keeping to assure compliance with federal regulations of the HOME Investment Partnership
Program; and
WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") requires
the Lead Entity to execute Subrecipient Agreements when applicable;
NOW, THEREFORE, the parties, for and in consideration of the promises and mutual
obligations set forth below, agree as provided for in this Agreement.
DPA Subrecipient Agreement Pasco 2014 Page 1 of 22
II. Definitions
Section 1 — Definitions (92.2)
Downpayment Assistance - HOME funds provided to assist eligible buyers in purchasing eligible
homes. Up to $10,000 in direct assistance will be used to assist eligible buyers purchase
eligible homes.
HOME Funds - The total amount of HOME Program dollars being provided to the Subrecipient
under this Agreement.
HOME Assisted Unit - Those units in the Project, which are assisted with the use of HOME
Funds in the form of Downpayment Assistance
Lead Entitv - The unit of local government designated by the Tri -Cities HOME Consortium to act
in a representative capacity of all members for the purposes of this Agreement (City of
Richland). The Lead Entity will assume overall responsibility for ensuring that the Tri -Cities
HOME Consortium is administered and operates in compliance with the requirements of the
HOME Program. The Lead Entity serves as the official and primary contact between HUD and
the Tri -Cities HOME Consortium.
Project - The activity and result for which HOME Funds are being provided under this
Agreement. Under this Agreement, 'Project' refers exclusively to HOME Downpayment
Assistance.
Project Delivery Costs - Reasonable and necessary costs incurred by the Subrecipient and/or
Lead Entity associated with the financing housing assisted with HOME funds. These may
include, but are not limited to, direct staff costs for work associated with a specific address and
costs for services required by private lenders.
Regulations - The requirements in 24 CFR Part 92 which govern the HOME Investment
Partnership Program and the use of HOME Funds, and all related and applicable OMB
Circulars, Codes, Regulations, State of Washington, and local requirements. Subrecipient
agrees to comply, and, as applicable, to require all third parties to comply with the requirements
of the regulations. Should anything in this Agreement be construed to conflict with HOME
regulations, the regulations shall prevail.
Subrecipient Administrator - HOME Consortium member(s) other than the non -Lead Entity who
perform some HOME administrative roles as delineated under separate, specific HOME written
Agreements. This term refers to the City of Kennewick and/or the City of Pasco.
Tri -Cities HOME Consortium - The particular Consortium operating under the HOME Program
consisting of the Cities of Kennewick, Pasco, and Richland. These three cities are each
"Consortium Members."
DPA Subrecipient Agreement Pasco 2014 Page 2 of 22
III. Agreement
Section 2 — The Project (92.205)
HOME Funds are being made available to the Subrecipient for the purpose of promoting
affordable housing to very low (50% and below median), and low-income (51 % to 80% median)
households through the provision of Downpayment Assistance, hereinafter called the "Project."
Project Description and Schedule of Completion:
Use of HOME funds:
Provision of direct assistance to buyers - down payment loan,
selling a home at a price below fair market value, principal
reduction, and/or prepay and closing cost assistance. Program
may be city-wide or limited to areas tar eted for revitalization.
Role of Subrecipient:
Program marketing, intake and screening of prospective
homebuyers, thorough buyer underwriting, income calculation
and documentation, executing required agreements with
buyers, recordkee in , and ensuring long-term compliance.
Role of Lead Entity:
Final buyer underwriting and approval. Data entry into IDIS.
Date funds must be
committed:
December 31, 2015
Date funds must be
June 30, 2016
expended:
The Subrecipient acknowledges and agrees that time is of the essence in this Agreement.
HOME funds uncommitted as of December 31. 2015 will be reallocated by the Lead Entity to a
CHDO development project or Downpayment Assistance in 2016.
All project work will be completed no later than June 30, 2016. Failure to complete the project as
agreed upon, or to comply with HOME Program and other applicable local, state or federal
requirements, can result in a breach of this Agreement and cause any HOME funds drawn or
incurred to become immediately due and repayable to the City of Richland, Lead Entity for the
Tri -Cities HOME Consortium.
Section 3 — Sources and Uses of Funds (92.504)
The total amount of HOME Funds to be allocated to this Downpayment Assistance Project is
$200,000 plus Program Income earned in fiscal year. The Project will use a combination of
HOME Funds from consortium fiscal year (Jan -Dec) 2014 and unallocated HOME Funds.
The Subrecipient will grant up to a maximum of $10,000 in funds to individuals in an amount
sufficient to make the homes affordable per underwriting guidelines established by the
Consortium. The Subrecipient, and/or Consortium Member, will be named as mortgagee on the
properties secured by a recorded Deed and Note as required by 24 CFR 92.254 for a period not
less than the period of affordability. The HOME funds shall be no lower in priority than second
position on the property unless prior written authorization is granted by the Consortium. The
property must be used as the household's primary residence during the term of the HOME
Program loan for both homebuyer and homeowner projects.
DPA Subrecipient Agreement Pasco 2014 Page 3 of 22
Section 4 — Income Eligibility (5.609)
Homebuyers assisted with HOME funds must have household incomes at or below 80% of Area
Median Income, as published annually by the Department of Housing and Urban Development.
Income documentation will be in a form consistent with HOME requirements as stated in the
HUD handbook "Technical Guide for Determining Income and Allowances Under the HOME
Program," 24 CFR Part 5. Documentation of household income must be examined in
accordance with Consortium HAP guidelines and projected for the next 12 -month period to
determine income eligibility. Household income must be re-examined to determine continued
eligibility for the HOME Program if the loan closing or recordation of the Deed of Trust occurs
later than 6 months from initial income verification. All household members aged 18 or older
must certify their gross annual income, including household members who declare no income
and non -related adults sharing a household.
Section 5 — Minimum HOME Investment (92.205(c))
Homeownership projects must meet the minimum per-unit subsidy amount at 24 CFR 92.205(c),
currently established as a minimum of one percent of the purchase price or $1,000, whichever is
greater.
Section 6 — Maximum HOME Investment (92.250)
The Consortium's maximum allowed Downpayment Assistance is $10,000 per household.
If Consortium HOME assistance is provided to a household that is receiving HOME assistance,
total HOME investment must not exceed the HOME subsidy limits set at 240% of the per unit
dollar limits established under Section 221(d)(3)(ii) of the National Housing Act (12 USC
17151(d)(3)(ii)) for elevator -type projects that apply to Area 4 Benton and Franklin counties (per
24 CFR 92.250). HUD periodically establishes this amount, and once known, the Lead Entity is
responsible for forwarding these limits to Subrecipient.
If Downpayment Assistance is provided to a buyer purchasing a home developed with HOME
funds, this activity must fall under the provisions of a HOME written agreement between the
Subrecipient and the Lead Entity separate from this Agreement.
Section 7 — Maximum Purchase Price (92.254(a)(2)
HOME funds are intended to provide modest housing. The maximum purchase price for existing
standard housing cannot exceed 95% of the median area purchase price for single family
housing in the jurisdiction as determined annually by HUD, or as determined by the Consortium
with written approval from HUD. A newly -constructed home may not exceed the maximum
purchase price limit as established annually by HUD. In addition, the purchase price of a
property may not exceed the appraised value of the property.
Section 8 — Displacement/Relocation Requirement (92.353) and URA
Any project that might displace a person, family, business, non-profit organization, or farm must
be approved by the Consortium prior to any commitment of HOME funds for the project, or of
entering into any type of agreement, whether verbal or written, with another party. Failure to
DPA Subrecipient Agreement Pasco 2014 Page 4 of 22
receive prior approval may cause the forfeiture/repayment of any and all sums under this
Agreement by the Subrecipient.
Section 9 — Environmental Review (92.352)
The effects of each activity related to the Project must be assessed in accordance with the
provisions of the National Environmental Policy Act of 1969 and the related authorities in 24
CFR Parts 50 and 58, and as detailed in 24 CFR 92.352. The Subrecipient must, prior to
committing or undertaking any activity that has physical impacts or limits the choice of
alternatives with respect to the Project, regardless of whether such activity is to be funded by
the HOME Program or other funds, comply, to the extent applicable, with the regulations found
at 24 CFR Part 58. For HOME activities involving only Downpayment Assistance, the 58.6
"Short Form" shall be completed to ensure that there is no environmental impact to the project.
Although the Consortium assumes overall responsibility for the environmental review, the
Subrecipient agrees to assist in providing information relating to the environmental review. All
applicable environmental review and mitigation requirements as provided in 24 CFR 58.5 must
be completed by the Lead Entity and approved by the U.S. Department of Housing and Urban
Development. The Subrecipient will abide by any special conditions, procedures and
requirements of the environmental review, and will advise the Consortium of any proposed
change in the scope of the Project or any change in environmental conditions in accordance
with 24 CFR 58.71(b).
The Subrecipient may not use any of the HOME Funds for acquisition or construction in
identified special flood hazard areas unless the Project is subject to the mandatory purchase of
flood insurance as required by Section 102(a) of the Flood Disaster Protection Act of 1973.
Failure to comply with this provision will cause an immediate cancellation of this Agreement and
forfeiture/repayment of HOME funds.
Section 10 — Disbursement of Funds (85.22)
The Subrecipient may request funds under this Agreement only when a written agreement (per
24 CFR 92.504(c)) has been fully executed, the funds are needed for payment of specific
allowable costs (per 24 CFR 92.206), and only in amounts needed to pay such costs as
identified in 24 CFR 85.22. The Subrecipient shall be reimbursed for eligible project costs after
review and approval by the Consortium of invoices, statements and other billings, supporting
documentation, and property inspection, if applicable. Upon prior approval from the Lead Entity,
the Consortium may pay a vendor or contractor directly.
Section 11 — Relationship
The relationship of the Subrecipient to the Consortium shall be that of an independent agency.
Nothing herein shall be deemed to create the relationship of employer/employee or
principal/agent between the parties.
Section 12 — Modifications and Amendments
This Agreement may only be amended in writing signed by the Consortium and the
Subrecipient. All modifications and amendments to this Agreement shall be in writing; such
DPA Subrecipient Agreement Pasco 2014 Page 5 of 22
modification or amendment shall not take effect until specifically approved in writing by the Lead
Entity of the Consortium and signed by all parties to this Agreement.
Section 13 —Waivers
No conditions or provisions of this Agreement shall be waived unless approved by the
Consortium in writing.
Section 14 —Assignment
The Subrecipient shall not assign any interest in this Agreement, and shall not transfer any
interest in this Agreement to any party (whether by assignment or novation) without prior written
consent of the Consortium.
Section 15 — Severability
If any provision of this Agreement, or portion thereof, is held invalid by any court of rightful
jurisdiction, the remainder of this Agreement shall not be affected, providing the remainder
continues to conform to applicable Federal and State law(s) and regulations and can be given
effect without the invalid provision.
Section 16 — Insurance and Bonds
The Subrecipient and its employees, volunteers, contractors or consultants shall carry
throughout the life of this Agreement General Liability Insurance, Comprehensive Automobile
Liability Insurance, and other such coverage as may be appropriate or required by State or
Federal law, for the services to be performed. This insurance shall include the following:
Professional Legal Liabilitv: Subrecipient shall maintain Professional Legal Liability or
Professional Errors and Omissions coverage appropriate to the Subrecipient's
profession and shall be written subject to limits of not less than $1 million per claim and
$1 million policy aggregate limit. The coverage shall apply to liability for a professional
error, act, or omission arising out of the scope of the work for this Agreement. Coverage
shall not exclude bodily injury, hazards, or property damage related to the work in this
Agreement, including testing, monitoring, measuring operations, or laboratory analysis
where such services are rendered as part of the Agreement.
Worker's Compensation (Industrial Insurance): Workers' Compensation insurance as
required by Title 51 RCW shall be maintained, and Subrecipient shall provide evidence
of coverage if so required.
3. Commercial General Liability: Commercial General Liability coverage shall be written on
ISO occurrence form CG 00 01 and shall cover liability arising from premises,
operations, independent contractors, personal injury and advertising injury. The
insurance shall include the Consortium, its members, officers, officials, employees and
agents with respect to performance of services, and shall contain no special limitations
on the scope of protection afforded as an additional insured. If this Agreement is over
$50,000 then Employers Liability Coverage shall also be maintained. Coverage shall
include limits of not less than $1 million per occurrence, and $2 million aggregate.
DPA Subrecipient Agreement Pasco 2014 Page 6 of 22
4. Automobile Liability: Business Automobile Liability insurance with a minimum combined
limit no less than $1 million per accident for bodily injury and property damage shall be
maintained. Coverage shall include owned, hired, leased, and non -owned automobiles.
Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a
substitute form providing equivalent liability coverage. If deemed necessary, the policy
shall be endorsed to provide contractual liability coverage.
Insurance is to be placed with insurers with a current A.M. best rating of not less than A: VII.
Subrecipient shall furnish the Consortium with original certificates and a copy of the amendatory
endorsements, including, but not necessarily limited to, the additional insured endorsement,
evidencing the insurance requirements prior to the commencement of the work.
The insurance coverage shall be primary with respect to any insurance or self-insurance
covering the Consortium, its members, elected and appointed officers, officials, employees and
agents. Any insurance, self-insurance, or insurance pool coverage maintained by the
Consortium shall be excess of the Subrecipient's insurance and shall not contribute with it.
Subrecipient shall give 30 days' prior written notice by certified mail, return receipt requested, to
the Consortium prior to any attempt to cancel any insurance policy maintained under this
Agreement.
Section 17 — Procurement Standards (84.40-48 Non Profit or 85.36(b) Government)
If applicable to its Downpayment Assistance program, the Subrecipient will establish
procurement procedures to ensure that materials and services are obtained in a cost-effective
manner. At a minimum, the Subrecipient shall comply with the nonprofit procurement standards
at 24 CFR 84.40-48, or 24 CFR 85.36(b) for governmental entities.
Section 18 — Program Income (92.503) and Administrative Funds (92.207)
Program income must be remitted to the Lead Entity within thirty (30) days of receipt to assist
the Consortium from drawing additional funds from the U.S. Treasury. The Subrecipient will
provide information as to the Project that generated the funds. Subrecipient will be eligible to
use 10% of its own generated program income for administrative purposes, and the balance of
90% will be distributed to projects in accordance with the approved Annual Action Plan.
Section 19 — Match Requirement (92.218)
The HOME program requires a non -federally funded 25% match to funds drawn from the federal
government. The Subrecipient is required to document sources of match, both cash and in kind,
and submit this information quarterly to the Lead Entity. The Subrecipient is responsible for
tracking and reporting any HOME Match generated by its Downpayment Assistance Program.
As written in the Tri -Cities HOME Consortium Agreement:
Should the Consortium's accrued HOME Match balance fall below one full year's
Match obligation, each Member shall be responsible for generating the required match
based on their share of funds. If the Match cannot be supplied by the responsible
Member, then HOME funds and associated match obligation may be transferred to
another Member by Lead Entity. If a member fails to supply sufficient match, their
share of HOME funding may be reduced commensurate with the match deficiency, as
delineated in any related Subrecipient Agreements.
DPA Subrecipient Agreement Pasco 2014 Page 7 of 22
Section 20 — Period of Compliance/Period of Affordability (92.254(b)4 Owner or 92.252(e)
Rental
The HOME -assisted housing must meet the affordability requirements established at 24 CFR
92.254(4) for owner -occupied units, or for a period not less than specified in the following table:
Homeownership Assistance
HOME amount per unit*
Minimum Period of Affordability
In Years
Under $15,000
5
$15,000 to $40,000
10
Over $40,000 or rehabilitation involving
refinancing
15
This period of compliance is called the "Period of Affordability" for the Project, beginning after
the Project is completed and occupied by an eligible household, and without regard to the term
of the loan or the transfer of ownership, except as noted below. The terms of affordability and
reporting requirements must be conveyed to the owner.
Section 21 — Termination of Period of Affordability (92.254(a)(5)(i)(A)
The applicability of the regulations may be terminated upon foreclosure or transfer in lieu of
foreclosure. The applicability of the affordability regulations shall be revived according to the
original terms if during the original Period of Affordability, the owner of record, before the
foreclosure or deed in lieu of foreclosure, or any entity that includes the former owner or those
with whom the former owner has or had family or business ties, obtains an ownership interest in
the project or property. Subrecipient may use purchase options, rights of first refusal, or other
preemptive rights to purchase the housing before foreclosure in order to preserve affordability.
Section 22 — Recapture Requirements (92.254)
Section 215 of the HOME statute requires that to be classified as affordable housing, the
property must have an initial purchase price that does not exceed 95% of the median purchase
price for the area, the house must be the principal residence of an owner who qualifies as low
income (80% or below median as established annually by HUD) at the time of purchase, and be
subject to either resale or recapture provisions. The Consortium uniformly applies the recapture
provision to ensure affordability as set forth in 24 CFR 92.254(a)(4), and 24 CFR
92.254(a)(5)(ii)(A)(1) and (A)(2), and (A)(5). Homebuyer direct assistance including
downpayment, closing costs and other direct subsidies such as principal reduction, interest buy -
downs, etc. are subject to recapture provisions. It also includes any HOME investment that
reduced the initial purchase price from fair market value to an affordable price (direct subsidy),
and/or principal and interest balance.
Deed of Trust restrictions, promissory notes, and written agreements are required on each
HOME assisted unit during the period of affordability, with specific loan terms and conditions
established by the Consortium. These documents enforce the recapture provision throughout
the period of affordability, which starts when all funds have been drawn, information has been
entered into HUD's Integrated Disbursement and Information System (IDIS), and the Project
has been closed in IDIS.
DPA Subrecipient Agreement Pasco 2014 Page 8 of 22
Recapture is triggered by any transfer of title, either voluntary or involuntary, or if the housing
does not continue to be the principal residence of the family during the period of affordability.
This period is not contingent on loan terms and an amortization period.
If the property is not used as the primary residence yet is held in ownership by the HOME -
assisted owner, under recapture provisions the entire HOME investment must be repaid, less
any HOME Program principal repayments already made, but is not subject to prorated or other
reductions during the period of affordability.
Recaptured funds from the sale are determined by the amount of net proceeds available from
the sale. Net proceeds are defined as the sales price minus superior loan repayment (other than
HOME funds) and any closing costs. The amount recaptured will not exceed the total net
proceeds available. Funds that are recaptured from the sale or transfer of property during the
period of affordability must be immediately returned to the City of Richland, as Lead Agency of
the Consortium.
Recapture Provisions
The method the Tri -Cities HOME Consortium will use to structure its recapture provisions is as
follows:
Direct HOME Subsidy. The PJ recaptures the entire amount of the direct HOME subsidy
provided to the homebuyer before the homebuyer receives a return. The recapture
amount is limited to the net proceeds available from the sale of the property during the
period of affordability. If there are insufficient net proceeds available at sale, the
homebuyer is not required to repay the difference between the total direct HOME
subsidy and the amount that is available from net proceeds, and the PJ is not required to
pay the difference to HUD.
Example: A homebuyer receives $5,000 of direct HOME Downpayment Assistance to
purchase a home at zero percent interest. The homebuyer sells the home after three years,
during the required 5 -year period of affordability. The PJ would recapture, assuming there
are sufficient net proceeds, the entire $5000 direct HOME subsidy. The homebuyer would
receive any net proceeds in excess of $5, 000.
The HOME Consortium will provide up to $10,000 in direct assistance to an eligible homeowner
for an eligible property. The direct assistance will be forgiven at the end of the five year period
of affordability.
The loan will become immediately due and payable to the HOME Consortium if any of the
following occurs during the duration of the loan: (1) the transfer or attempted transfer of an
interest in a portion or all of the Property, whether by sale, refinance, contract, assignment or
otherwise; (2) the death of all persons comprising the Borrower; (3) a default on any terms of
the First Subordinate Deed of Trust, the First Promissory Note or the First Deed of Trust; (4)
failure of the Borrower to use the Property continuously as the Borrower's principal or primary
residence; (5) the renting, leasing or subletting of the Property to any third party for any
purpose.
To preserve affordability, Consortium members may use purchase options, rights of first refusal,
or other preemptive rights to purchase previous HOME assisted housing prior to foreclosure or
at a foreclosure sale. HOME funds may not be used to repay a HOME loan or investment. The
DPA Subrecipient Agreement Pasco 2014 Page 9 of 22
additional HOME assistance, combined with the initial HOME investment, may not exceed the
maximum per unit subsidy limits established at 221(d)(3) for elevator construction. The
affordability restrictions may terminate upon foreclosure, transfer in lieu of foreclosure, or
assignment of an FHA insured mortgage to HUD. However, affordability restrictions must be
revived per the original terms if during the original affordability period, the owner of record,
before the termination event, obtains an ownership interest in the housing.
Section 24 — Property Standards (92.251)
All existing housing assisted with Homebuyer/Downpayment Assistance must be decent, safe,
sanitary, and in good repair. Acquisition of existing housing must be decent, safe, and sanitary,
meet Housing Quality Standards (HQS), pass a visual paint assessment if constructed prior to
1978, and meet local ordinances and zoning at the time of project completion. Homes must
meet all applicable Washington State and local City housing quality standards and code
requirements. If the property is new construction and not assisted with HOME funds during the
construction activities, it must have a Certificate of Occupancy issued prior to HOME
Homebuyer/Downpayment Assistance and loan closing.
Under the New HOME Final Rule, released in July 2013, homes must be free of any
deficiencies identified by HUD in the UPCS (pursuant to 24 CFR 5.705) based on the
inspectable items and inspected areas in HUD -determined physical inspection procedures. If
the housing does not meet these standards, the housing must be rehabilitated to meet the
standards or it cannot be acquired using HOME Downpayment Assistance funds. Note: Until
HUD issues specific guidance on OPCS standards, the property standard requirements in the
paragraph above will apply to all Projects.
Section 25 — Non -Discrimination and Equal Opportunity
The Subrecipient agrees that it will utilize and make available the HOME funds in conformity
with the non-discrimination and equal opportunity requirements set out in the HUD regulations in
the National Housing Affordability Act. These regulations include:
The requirements of the Fair Housing Act, 42 U.S.C. 3601-20, and implementing
regulations at 24 CFR Part 100; Executive Order 11063 (Equal Opportunity in Housing)
as amended by Executive Order 12259 and implementing regulations at 24 CFR 107;
and Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d, and implementing
regulations at 24 CFR Part 1 (Nondiscrimination in Federally Assisted Programs);
2. The prohibitions against discrimination on the basis of age under the Age Discrimination
Act of 1975 (42 U.S.C. 6101-07) and the regulations at 24 CFR 146;
3. The prohibitions against discrimination on the basis of handicap under Section 504 of
the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR,
Part 8;
4. The requirements of the Executive Order 11246 (Equal Employment Opportunity) and
the regulations issued under the Order at 41 CFR Chapter 60;
5. The requirements of Section 3 of the Housing and Urban Development Act of 1968, 12
U.S.C. 1702u (Employment Opportunities for Business and Lower Income Persons in
Connection with Assisted Projects); and
DPA Subrecipient Agreement Pasco 2014 Page 10 of 22
6. The requirements of Executive Orders 11625 and 12432 regarding Minority Business
Enterprise, and 12138 regarding women's Business Enterprise, and regulations
S.85.36(e) of Section 281 of the National Housing Affordability Act.
7. The requirements of Washington State law as found at RCW 49.60.
8. Equal Access to Housing in HUD Program Regardless of Sexual Orientation and Gender
Identity FR -5359 February 2012. Through this final rule, HUD implements policy to
ensure that its core programs are open to all eligible individuals and families based on
their need regardless of sexual orientation, gender identity, or marital status. This rule
follows a January 24, 2011 proposed rule which noted evidence suggesting that lesbian,
gay, bisexual, and transgender (LGBT) individuals and families are being arbitrarily
excluded from housing opportunities in the private sector. The rule clarifies that
individuals and families may not be excluded from participation because one or more
members of the household may be an LGBT individual, have an LGBT relationship, or
be perceived to be such an individual or in such relationship. Owners and operators of
HUD assisted housing or housing financed or insured by HUD may not inquire about the
sexual orientation or gender identity of the applicant for, or occupant of, the dwelling,
whether renter or owner occupied.
Section 26—Affirmative Marketing (92,351(a), MBE/WBE Records (92.351(b) and 85.36(e)
and Reports)
The Consortium's policy is to provide information and attract eligible persons to available
housing without regard to race, color, national origin, sex, religion, familial status (persons with
children under 18 years of age, including pregnant women), or disability. The procedures
followed are intended to further the objectives of Title VIII of the Civil Rights Act of 1968 (Fair
Housing Act), and Executive Order 11063, which prohibits discrimination in the sale, leasing,
rent and other disposition of properties and facilities owned or operated by the federal
government or provided with federal funds.
In accordance with the Affirmative Marketing regulations of the HOME Program 24 CFR
§92.351, the Consortium has established an "Affirmative Marketing Plan" to ensure that all
Subrecipient who are allocated HOME Funds employ a marketing plan that promotes fair
housing and ensures outreach to all potentially eligible households, especially those least likely
to apply for assistance.
Affirmative marketing steps will be taken by the Subrecipient to provide information and
otherwise attract eligible persons in the housing market area to the available housing without
regard to race, color, national origin, sex, religion, familial status or disability. A detailed
affirmative marketing plan must be submitted to the Lead Entity of the Tri -Cities HOME
Consortium at the start of the Project. The Subrecipient will document and provide data on the
outreach steps taken.
Reports will be provided in accordance with 92.508(3) that gives a description of each project
assisted, including the location, form, and term of assistance.
DPA Subrecipient Agreement Pasco 2014 Page 11 of 22
Section 27 — Lead -Based Paint
The Subrecipient must comply with the U.S. Department of Housing and Urban Development
Lead -Based Paint Regulations (24 CFR Part 35) issued pursuant to the Lead -Based Paint
Poisoning Prevention Act (42 U.S.C. Sections 4821-4846, et seq.) and the Residential Lead -
Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856) requiring elimination of
immediate lead-based paint hazards in residential structures; and notification of the hazards of
lead-based paint poisoning to purchasers and/or owners of residential structures constructed
prior to 1978. Properties must pass the lead-based paint visual inspection (if home built prior to
1978). The Subrecipient will be responsible for conducting a visual inspection of any homes built
prior to 1978 to identify any potential issues with lead-based paint. Should the visual inspection
identify potential issues, the prospective buyer will be informed, and the buyer and/or seller shall
be responsible for all lead-based paint testing, required repairs using safe work practices or a
certified lead-based paint abatement firm, and a clearance exam.
Section 28- Reimbursement for Project Costs
The Lead Entity shall reimburse the Subrecipient for the following documented costs:
1. Direct Assistance to Eligible Homebuyers: The Lead Entity shall reimburse the
Subrecipient for HOME Downpayment Assistance provided to eligible buyers for eligible
home purchases as delineated in this Agreement.
2. Proiect Delivery Costs: The Lead Entity shall reimburse the Subrecipient for eligible
project delivery costs as defined in Section 11 of this Agreement. Staff hours and all other
costs must be thoroughly documented to be fully reimbursed.
3. Administrative Costs for Proiects that do NOT go forward: If costs are incurred for a
project/homebuyer that does not result in a HOME assisted unit those costs then
become the financial responsibility of the Subrecipient and will not be reimbursed by the
Lead Entity.
The Subrecipient shall submit requests for reimbursement of eligible costs, along with all
appropriate documentation to the Lead Entity within 60 days of loan closing. Failure to submit
requests for reimbursement shall result in those costs becoming the financial responsibility of
the Subrecipient.
Section 29 — Conflict of Interest (92.356)
Generally, no employee, agent, member, consultant, officer or elected or appointed official of
the members in the Consortium or Subrecipient who exercises or has exercised any functions or
responsibilities with respect to any activities that are in any way connected with the decision to
provide the HOME Funds may obtain a financial interest, reside in, or benefit from those
activities, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for themselves or those with whom they have family or business
ties, during their tenure or for one year thereafter as stated in 24 CFR 92.356, and the
Subrecipient must take appropriate steps to assure compliance.
Section 30 — Records (92.508)
Project beneficiary information pertaining to household size, income levels, racial/ethnic
characteristics, disability status, household composition, female head of household composition,
DPA Subrecipient Agreement Pasco 2014 Page 12 of 22
and any other information required by the Consortium and HUD, will be collected and
documented in an individual and cumulative manner. Project management records must be kept
which demonstrate compliance with this Agreement and related regulations of the HOME
Program 24 CFR 92.
Records must be kept by the Subrecipient and be made available to the Consortium that
demonstrate compliance with this Agreement and with 24 CFR 92.508. Records must be
maintained for at least five (5) years after the Project completion date, except for documents
imposing recapture restrictions, which must be retained for five (5) years after the expiration of
the period of affordability, as specified above, or as any of the following apply:
1. Records that are the subject of audit findings must be retained for three (3) years after
such findings have been resolved;
2. Records for non -expendable property (as defined in OMB Circular #A-110 for non-profit
organizations) shall be retained for three (3) years after its final disposition.
If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started
before the expiration of the required record retention period, records must be retained until
completion of the action and resolution of all issues which arise from it, or until the end of the
required period, whichever is later.
Upon request, the Subrecipient agrees to immediately provide to the Lead Entity any and all
information to document compliance with the HOME Program and related laws, rules,
regulations and policies.
Section 31 — Public Records
The Subrecipient understands that this Agreement is subject to public records disclosure
pursuant to RCW 42.56 and agrees to timely provide documents as required by law. The
Subrecipient shall indemnify, defend and hold harmless the Lead Entity of the Consortium for
any liability arising out of the Subrecipient's failure to produce public records as required.
Section 32 — Monitoring
At least annually, or more often if deemed necessary, the Lead Entity will monitor the
performance of the Subrecipient to assure compliance with the requirements of this Agreement.
The review may include on-site inspections and review of records to determine compliance with
this Agreement through the contract period. Monitoring forms primarily used can be found at:
http://portal.hud.govlhudportal/HUD?src=/program offices/administration/hudclips/handbooks/cod/6509 2
Chapter 7 for the HOME Investment Partnership Program.
The Subrecipient agrees to provide any and all information to the Consortium to assist in
meeting administrative and monitoring requirements, including reporting progress of the Project
in IDIS. The Subrecipient agrees to work cooperatively with the Consortium to assist in meeting
its obligations to HUD.
Any duly authorized representative of the U.S. Department of Housing and Urban Development,
authorized federal or state agent, or the Consortium shall at all reasonable times have access to
and the right to inspect, copy, audit, and examine all books, records and other documents
relating directly to the Subrecipient's receipt and disbursement of the HOME funds, as well as
DPA Subrecipient Agreement Pasco 2014 Page 13 of 22
access to the project site(s) and all project records. The Subrecipient agrees to immediately
correct any deficiencies as noted by the Lead Entity, HUD, and/or other authorized entities.
The Subrecipient agrees to assist and cooperate with the Consortium in monitoring each
housing unit for principal residency as provided in 24 CFR 92.254(a)(3) upon completion of the
project and during the period of affordability.
Section 33 — Financial Responsibility and Timeliness of Reimbursement Requests
The Subrecipient agrees that it is financially and legally responsible for any monitoring/audit
exception which occurs due to its negligence or failure to comply with the terms of this
Agreement and/or HOME regulations. As provided in Section 28 regarding Reimbursement, the
Subrecipient acknowledges that failure to submit reimbursement requests with all appropriate
supportive documentation within 60 days of loan closing and direct assistance to the homebuyer
shall result in those costs becoming the financial responsibility of the Subrecipient.
The Subrecipient further acknowledges that if costs are incurred for a project/homebuyer that
does not result in a HOME assisted unit, those expenditures may be reimbursed from the
Subrecipient's administration funds derived from program income generated by other HOME
projects. If the Subrecipient has no balance of HOME program income from which such costs
can be reimbursed, those costs then become the financial responsibility of the Subrecipient and
will not be reimbursed by the Lead Entity.
Section 34— Indemnification
The Subrecipient will save and hold harmless and indemnify the Lead Entity against any and all
liability, claims and costs of whatever kind and nature for injury to or death of any person or
persons, and for loss or damage to any property, occurring in connection with or in any way
incident to or arising out of activities undertaken under this Agreement. Further, Subrecipient
shall reimburse the Lead Entity for all costs incurred in connection with a negative audit finding
resulting from Subrecipient's negligent or willful mismanagement of HOME funds, or its
negligent or willful disregard for the laws, rules and regulations governing the HOME Investment
Partnership Program.
Section 35 — Corrective and Remedial Action
Subrecipient will immediately correct or cause to be immediately corrected any and all actions
or performance deficiencies in the Project as may be determined by the Lead Entity, or the U.S.
Department of Housing and Urban Development (HUD). Failure to correct such actions or
performance deficiencies within thirty (30) days from written notification from the Lead Entity
shall result in suspending all HOME -funded projects, the cancellation of this Agreement and
other HOME Program contracts, the reprogramming of HOME funds to other eligible activities,
and/or the repayment of the HOME funds from non-federal sources.
Section 36 — Attorney's Fees and Costs
In the event of a lawsuit between the parties to this Agreement, the prevailing party shall be
entitled to recover judgment against the other party for reasonable attorney's fees and other
costs either at trial or on appeal. If either party exercises any non -judicial right or remedy to
enforce such party's rights hereunder, it shall be a condition for the cure of the default that the
defaulting party will pay the non -defaulting party's reasonable attorney's fees incurred and all
DPA Subrecipient Agreement Pasco 2014 Page 14 of 22
reasonable costs. Failure to pay such costs and reasonable attorney's fees shall constitute an
event of default under this Agreement.
Section 37 — Venue and Law
Except where federal law controls, this Agreement shall be governed by the laws of the State of
Washington. Venue for any action under this contract shall be in Benton County, Washington.
Section 38 — Suspension or Termination of Agreement
The Consortium may cancel this Agreement "for cause" or "not for cause" by providing written
30 days' notice by certified mail, return receipt requested, to the other signatory members of this
Agreement.
There are three (3) separate methods of suspension or termination of this Agreement:
By fulfillment. The Agreement will be considered to be terminated upon fulfillment
of its terms and conditions.
ii. By mutual consent. The Agreement may be terminated or suspended in whole or
in part, at any time, if both parties consent to such termination or suspension.
The conditions of the suspension or termination shall be documented by giving a
minimum of thirty (30) days' written notice.
For cause. The Consortium may suspend or terminate this Agreement in whole
or in part, for cause, when the Subrecipient has failed in whole or in part to meet
its commitments and obligations as outlined, and when the Consortium deems
continuation to be detrimental to its interest. Failure to carry out the project as
described and in compliance with HOME Program regulations found at 24 CFR
92 shall be deemed a failure to perform, and cause the immediate relinquishment
of any interest in future HOME funds and/or require repayment of expended
HOME funds.
In the event of suspension, the Consortium will notify the Subrecipient in writing of the corrective
action required. Further payment may be withheld at the Consortium's discretion until the
Subrecipient causes corrective action or the Agreement is terminated.
"For cause" includes:
a. Failure to comply with the terms and conditions of this Agreement, or to
substantiate compliance;
b. Improper or illegal use of project funds or resources;
C. Any illegal act by the Subrecipient and its representatives;
Failure to submit required reports on or before the due date or failure to
document compliance with the terms and conditions contained herein.
In the event of termination, the Lead Entity will notify the Subrecipient in writing of its
determination to terminate, the reason for such termination, and the effective date of the
DPA Subrecipient Agreement Pasco 2014 Page 15 of 22
termination. Payments made to the Subrecipient or recoveries by the Consortium will be in
accordance with the legal rights and liabilities of the parties. Recoveries include all HOME funds
on hand at the time of Agreement termination, any accounts receivable attributable to the use of
HOME funds, and any other assets acquired with HOME funds.
Actions by either party under this article shall not constitute a waiver of any claim by either party
arising from conditions or situations leading to such suspension or termination.
HOME funds not committed to specific projects as of the termination date will be relinquished to
the Consortium for redistribution to other qualified projects.
Section 39 — Dispute Resolution
The Lead Entity and the Subrecipient agree to negotiate in good faith for a period of 30 days
from the date of notice of all disputes between them prior to exercising their legal rights under
this Agreement or other law. All disputes not resolved by negotiation between the parties may
be arbitrated only by mutual agreement of the parties. If not mutually agreed to resolve the claim
by arbitration, the claim will be resolved by legal action. Arbitration of all claims will be in
accordance with the RCW 7.04A and the mandatory rules of arbitration with venue being placed
in Benton County, Washington. Arbitration shall include an award to the prevailing party of its
reasonable attorney fees and costs in action against the other.
Section 40 — Written Agreement with Homebuyers (92.504(a))
In accordance with the provisions of 24 CFR 92.504(c)(5), when assistance is provided to a
homebuyer or homeowner, a written agreement separate from deeds, promissory notes, or
other security instruments must be entered into that includes, at a minimum:
For homebuyers, the agreement must conform to the requirements in 92.254(a)
and specify the value of the property, principal residence, recapture provisions,
and lease -purchase, if applicable. The agreement must specify the amount of
HOME funds, the term and form of assistance whether grant or loan, the use of
the funds for down payment, closing costs, rehabilitation, etc., and the date by
which the housing must be acquired.
For homeowners, the written agreement must conform to the requirements in
92.254(b) and specify the amount, term, and form of HOME assistance,
rehabilitation work to be undertaken, roles and responsibilities, date for
completion, and property standards to be met.
The approved written agreement shall be provided to the Subrecipient by the Lead Entity
Section 41 - Debarment and Suspension (2 CFR 2424)
The Subrecipient may not award or permit an award of a contract to any party which is
debarred, suspended or ineligible to participate in a federal program. The Subrecipient certifies
that it is not debarred, suspended or ineligible to participate in a federal program. The
Subrecipient will submit to the Consortium the names of contractors and any subcontractors
prior to signing contracts to ensure compliance with 24 CFR Part 24, "Debarment and
Suspension." The Subrecipient will also assure that language pertaining to debarred,
suspended or ineligibility to participate is inserted in all contract agreements. If, during the time
DPA Subrecipient Agreement Pasco 2014 Page 16 of 22
of this Agreement, the Subrecipient is debarred, suspended or ineligible to participate in a
federal program, the Consortium may terminate this Agreement for cause.
Section 42 — Financial Management and Audits (92.506)
The Subrecipient shall adhere to the generally accepted accounting principles and procedures
issued by the American Institute of Certified Public Accountants, and will utilize adequate
internal controls and maintain necessary source documentation for all costs incurred. The
Subrecipient shall comply with cost principles as established by OMB Circulars A-87, relocated
to 2 CFR, Part 225, and with administrative requirements at A-102 if a state, local government,
or Indian tribe. If the Subrecipient is a non-profit organization, it will comply with cost principles
of OMB Circular A-122, relocated to 2 CFR, Part 230, and administrative requirements
established at OMB Circular A-110. All costs must be reasonable and necessary.
The Subrecipient shall also comply with auditing standards issued by the Comptroller General of
the United States and be conducted in accordance with 24 CFR 84.26 and 85.26. All
subrecipients who expend $500,000 or more in a year in federal awards, whether a direct
subrecipient of this Agreement or a sub-subrecipient receiving federal funds through a pass-
through entity, shall have a single audit conducted for that year in accordance with the provision
of OMB A-133, Subpart B. When a Subrecipient expends federal awards under only one federal
program, excluding Research and Development performed by a non-federal entity, and the
program's laws, regulations, or grant agreements do not require a financial statement audit, the
subrecipient may elect to have a program -specific audit conducted in accordance with Subpart
B, Section 235. A program -specific audit may not be elected for Research and Development
unless all of the federal awards expended were received from the same federal agency, or the
same federal agency and the same pass-through entity, and that federal agency, or pass-
through entity approves in advance a program -specific audit. The audit must be conducted
within 60 days of completion of this Agreement.
Non-federal entities who expend less than $500,000 a year in federal awards are exempt from
federal audit requirements for that year, except this does not limit the authority of federal
agencies, including HUD, Inspectors General, or General Accounting Office to conduct or
arrange for additional audits. All records shall be made available for review or audit by
appropriate local, state and federal entities.
Section 43 — Title Insurance
The title policy will name the Consortium as a beneficiary. For acquisition projects not involving
any type of construction, the Subrecipient may request a copy of the first lien right lender's title
insurance policy. Ownership must be fee simple.
Section 44 — DUNS Number
A Dun and Bradstreet Data Universal Numbering System (DUNS) number is required for any
business or agency that receives federal assistance per the Federal Funding Accountability and
Transparency Act of 2006 (FFATA). The Subrecipient will provide information on itself, will
assure that all assisted agencies/businesses have been assigned a DUNS number, and shall
provide this information to the Lead Entity. A free DUNS number may be requested via the web
at http://fedgov.dnb.com/webform/index.isp or by calling 1-866-705-5711.
DPA Subrecipient Agreement Pasco 2014 Page 17 of 22
Section 45 — SAM Registration
The Federal Funding Accountability and Transparency Act of 2006, as amended (FFATA)
requires the Office of Management and Budget (OMB) to maintain a single, searchable website
that contains information on all federal spending awards. As part of this, all agencies/businesses
that meet the following thresholds must register in SAM and report to the Consortium if they
had:
a) A gross income from all sources over $300,000 in the agency's previous tax year;
and
b) Are awarded HOME funds of $25,000 and over.
This information must be reported to the Consortium within five (5) days of signing this
Agreement. Free registration can be obtained at https://www.sam,gov/portal/public/SAM/.
Because this registration expires annually, it must be updated and kept current during the
contract period. The Subrecipient will provide information on itself and will assure that all
assisted agencies/businesses have registered and remain current in SAM. Additional
information is required if more than 80% of annual gross revenues of $25 million or more come
from the federal government, and employee and compensation information is not already
available through reporting to the SEC.
Section 46 — Assessment of Homebuyer Underwriting
Before a Subrecipient enters into a legally binding written agreement to provide 2012 and later
HOME funds for downpayment assistance, the Subrecipient will assist the Lead Entity in
conducting an underwriting review to ensure adequate need for HOME assistance. For all 2012
projects, the Subrecipient must certify to the Consortium that it has fully executed a written
agreement with a homebuyer that meets the requirements of the HOME regulations, and that all
statements and claims made are true and correct.
Section 47 — Reversion of Assets
Upon expiration of this Agreement, any HOME funds or accounts receivable that can be
attributed to the use of HOME funds will revert to the Lead Entity of the Consortium. Should the
Consortium Member stop participating in consortium programs or fail to perform in compliance
with program requirements, assets are subject to reversion to the Lead Entity.
Section 48 — Drug Free Workplace
In accordance with the Drug Free Workplace Act of 1988, Subrecipient will, or will continue to,
provide a drug-free workplace by:
Publishing a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited in the workplace,
and specifying the actions that will be taken against employees for violation of such
prohibition;
Establishing an ongoing drug-free awareness program to inform employees about:
a) The dangers of drug abuse in the workplace;
DPA Subrecipient Agreement Pasco 2014 Page 18 of 22
b) The Subrecipient/employer's policy of maintaining a drug-free workplace;
C) Any available drug counseling, rehabilitation, and employee assistance
programs; and
d) The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
3. Making it a requirement that each employee to be engaged in the performance of the
grant be given a copy of the statement required by paragraph 1;
4. Notifying the employee in the statement required by paragraph 1 that, as a condition of
employment under the grant, the employee will:
a) Abide by the terms of the statement; and
b) No later than five (5) calendar days after such conviction, notify the employer in
writing of his or her conviction for a violation of a criminal drug statute occurring
in the workplace;
5. Notifying the agency in writing within ten (10) calendar days after receiving notice under
subparagraph 4(b) from an employee, or otherwise receiving actual notice of such
conviction. Employers of convicted employees must provide notice, including position
title, to every grant officer or other designee on whose grant activity the convicted
employee was working, unless the federal agency has designated a central point for the
receipt of such notices. Notice shall include the identification number(s) of each affected
grant;
Taking one of the following actions, within 30 calendar days of receiving notice under
subparagraph 4(b), with respect to any employee who is so convicted:
a) Taking appropriate personnel action against such an employee, up to and
including termination, consistent with the requirements of the Rehabilitation Act
of 1973, as amended; or
b) Requiring such employee to participate satisfactorily in a drug abuse assistance
or rehabilitation program approved for such purposes by a federal, state, or local
health, law enforcement, or other appropriate agency;
Making a good faith effort to continue to maintain a drug-free workplace by
implementation and enforcement of this article while carrying out all HOME Program -
related activities.
Section 49 — Anti -Lobbying Certification
To the best of the signatory party's knowledge and belief:
No federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person
for influencing or attempting to influence an officer or employee of any agency, a member of
Congress, an officer or employee of Congress, or an employee of a member of Congress in
connection with the awarding of any federal contract, the making of any federal grant, the
making of any federal loan, the entering into of any cooperative agreement, and the extension,
DPA Subrecipient Agreement Pasco 2014 Page 19 of 22
continuation, renewal, amendment, or modification of any federal contract, grant, loan, or
cooperative agreement;
If any funds other than federal appropriated funds have been paid or will be paid to any person
for influencing or attempting to influence an officer or employee of any agency, a member of
Congress, an officer or employee of Congress, or an employee of a member of Congress in
connection with this federal contract, grant, loan, or cooperative agreement, it will complete and
submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions; and
The language of the above paragraphs of this anti -lobbying certification must be included in the
award documents for all sub -awards at all tiers (including subcontracts, sub -grants, and
contracts under grants, loans, and cooperative agreements) and all subrecipients/sub-
subrecipients shall certify and disclose accordingly.
The signatory parties are in compliance with restrictions on lobbying required by 24 CFR Part
87, together with disclosure forms, if required by that part.
Section 50 — Uniform Administrative Requirements (92.505)
Governmental subrecipients must comply with OMB Circular A-87 for determining allowable
costs and the following sections of 24 CFR Part 85:
85.6 Additions and Exceptions
85.12 Special Grant or Subgrant Conditions for "high-risk' Grantees
85.20 Standards for financial management systems
85.22 Allowable costs
85.26 Non -Federal Audit
85.32 Equipment
85.33 Supplies
85.34 Copyrights
85.36 Procurement
85.44 Termination for Convenience
85.51 Later Disallowances and Adjustments
85.52 Collection of Amounts Due
Nonprofit (nongovernmental) subrecipients must comply with OMB Circular A-122 and the
following section of 24 CFR Part 84:
84.2 Definitions
84.5 Subawards
84.13 Debarment and suspension; Drug -Free Workplace
84.14 Special Award Conditions
84.15 Metric System of Measurements
84.16 Resource Conservation and Recovery Act
84.21 Standards for Financial Management Systems
84.22 Payment
84.26 Non -Federal Audits
84.27 Allowable Costs
84.28 Period of Availability
DPA Subrecipient Agreement Pasco 2014 Page 20 of 22
84.30 Purpose of Property Standards
84.31 Insurance Coverage
84.34 Equipment
84.35 Supplies and Other Expendable Property
84.36 Intangible Property
84.37 Property Trust Relationship
84.40 Purpose of Procurement Standards
84.41 Recipient Responsibilities
84.42 Codes of Conduct
84.43 Competition
84.44 Procurement Procedures
84.45 Cost and Price Analysis
84.46 Procurement Records
84.47 Contract Administration
84.48 Contract Provisions
84.51 Monitoring and Reporting Program Performance
84.52 Financial Reporting
84.53 Retention and Access Requirements for Records
84.60 Purpose of Termination and Enforcement
84.61 Termination
84.62 Enforcement
84.72 Subsequent Adjustments and Continuing Responsibilities
84.73 Collection of Amounts Due
Section 51 — Homeownership Assistance Program (HAP)
Subrecipient agrees that it will follow and comply with Consortium -adopted HAP Guidelines 8.13
and forms, which may be modified periodically by Consortium members with Lead Entity final
approval.
FORM # _
FORM NAME.
01
Borrower(s) Application
01a -Non Borrower Certification of Income
01 b- Borrower/Applicant Release of Information
02
Addendum to Sales Agreement
Notice of Voluntary Arm's Length Transaction
03
Addendum to Sales Agreement
3a-HQS Inspection and Visual LBP Inspection (pre -1978)
3b-HQS Inspection(post-1978)
04
Seller Disclosure Fair Market Value
05
Needs Assessment
06
Financial Records Disclosure
07
Employment Security Department. Self -Request for Records
08
Verification of Employment (VOE)
09
4506-T Request for Transcript of Tax Return
10
Initial Disclosures/Final Disclosures
11
Initial Disclosure Letter
12
Protect Your Family From Lead In Your Home Notification Pamphlet EPA
DPA Subrecipient Agreement Pasco 2014 Page 21 of 22
13
Fair Housing — Equal Opportunity for All Notification Pamphlet
14
For Your Protection: Get a Home Inspection
15
Homebuyer Agreement
16
17
HOME Activity Funding Certification
18a
Commitment Letter
18b
Denial Letter
19
Visual Inspection Form
20
HQS Inspection Form
20a-HQS Homebuyer Self -Certification for Kitchen Appliances
21
Lead Safe Housing Requirements Screening Worksheet
22
Escrow Closing Instructions
23
Correction Agreement
24
Deed of Trust
25
Promissory Note
26
Individual Loan Data Form
27
Subsidy Layering Review—Acquisition Only
28
Sources/Uses Statement
The Agreement will be effective upon the date of signing by the City of Richland, Lead Entity of
the Tri -Cities HOME Consortium.
SUBRECIPIENT:
Signature Date
Print Name and Title
APPROVED AS TO FORM:
Heather Kintzley, City Attorney
City of Richland
CONSORTIUM:
Tri -Cities HOME Consortium
P.O. Box 190, MS 19
Richland, WA 99352
Cynthia D. Johnson, City Manager Date
City of Richland
DPA Subrecipient Agreement Pasco 2014 Page 22 of 22
TRI -CITIES HOME CONSORTIUM
SUBRECIPIENT WRITTEN AGREEMENT
GOVERNING ADMINISTRATIVE FUNDS
This HOME Program Subrecipient Agreement, hereinafter called "Agreement," has been
made and entered into as of the _day of , 20_, between the City of
Richland, Lead Entity of the Tri -Cities HOME Consortium, 505 Swift Avenue, Richland,
Washington, hereinafter referred to as "Consortium" or "Lead Entity', and
a member City of the Consortium, whose address is
hereinafter referred to as "Subrecipient." This Agreement is authorized
by Title ll, Sections 216 and 217 of the Cranston -Gonzalez National Affordable Housing Act of
1990, as amended, and the correlating federal regulations found at 24 CFR Part 92, together
known as the HOME Investment Partnerships (HOME) Program.
W -I -T -N -E -S -S -E -T -H:
I. RECITALS
WHEREAS, the Federal Government has made funds available to the Consortium
pursuant to the HOME Program CFDA 14.239 to increase the number of families, especially low
income families, served with decent, safe, sanitary and affordable housing, and to expand the
long term supply of affordable housing; and
WHEREAS, the HOME Program authorizes contracts with public agencies to carry out
the objective identified above; and
WHEREAS, the City of Richland has been designated as the Lead Entity of the Tri -Cities
HOME Consortium as delineated in the "Tri -Cities HOME Consortium Agreement"; and
WHEREAS, projects overseen by a Consortium Member acting as a Subrecipient may
generate HOME Program Income, ten percent (10%) of which may be utilized for administrative
costs incurred by the Subrecipient; and
WHEREAS, Consortium Members will be equally responsible for Lead Entity
administrative shortfalls; and
WHEREAS, the Lead Entity is responsible for the distribution of administrative funds
generated by HOME Program Income to the subrecipient when the Subrecipient's HOME
activities generate program income; and
WHEREAS, the Lead Entity is also responsible for monitoring, reporting, and record-
keeping to assure compliance with federal regulations of the HOME Investment Partnership
Program; and
WHEREAS, HUD requires the Lead Entity to execute Subrecipient Agreements when
applicable;
HOME Subrecipient Agreement -Administrative Activities 2014 Page 1 of 14
NOW, THEREFORE, the parties, for and in consideration of the promises and mutual
obligations set forth below, agree as provided for in this Agreement.
II. Definitions
Section 1 — Definitions (92.2)
Consortium Agreement - An executed written agreement governing how the Consortium
operates and outlining the roles and responsibilities of the Lead Entity and Consortium
Members.
HOME Funds - The total amount of HOME Program dollars being provided to the Subrecipient
under this Agreement.
Lead Entitv - The unit of local government designated by the
in a representative capacity of all members for the pur,
Richland). The Lead Entity will assume overall responsibi
HOME Consortium is administered and operates in compll
HOME Program. The Lead Entity serves as the official and
the Tri -Cities HOME Consortium.
Tri -Cities HOME Consortium to act
)oses of this Agreement (City of
ity for ensuring that the Tri -Cities
ance with the requirements of the
primary contact between HUD and
Program Income - Funds received by the Lead Entity or Subrecipient Administrators that are
directly generated by the use of HOME funds or matching contributions. Program income
includes, but is not limited to:
• Proceeds from the sale or long-term lease of real property acquired, rehabilitated or
constructed with HOME funds or matching contributions;
• Income from the use or rental of real property owned by the Lead Entity or Subrecipient
that was acquired, rehabilitated, or constructed with HOME funds or matching
contributions, minus the costs incidental to generating that income;
• Payments of principal and interest on loans made with HOME or matching funds, and
proceeds from the sale of loans or obligations secured by loans made with HOME or
matching contributions;
• Interest or other return on investment of HOME and matching funds;
• Interest on program income;
• Any other interest or return on the investment of HOME and matching funds.
Note: Recaptured HOME funds are the repayment of original HOME investments, and are not
technically program income.
Proiect Delivery Costs - Reasonable and necessary costs incurred by the Subrecipient and/or
Lead Entity associated with the development and/or financing of housing assisted with HOME
funds. These may include, but are not limited to, direct staff costs for work associated with a
specific address and costs for services required by private lenders.
Regulations - The requirements in 24 CFR Part 92 which govern the HOME Investment
Partnership Program and the use of HOME Funds, and all related and applicable OMB
HOME Subrecipient Agreement - Administrative Activities 2014 Page 2 of 14
Circulars, Codes, Regulations, State of Washington, and local requirements. Subrecipient
agrees to comply, and, as applicable, to require all third parties to comply with the requirements
of the regulations. Should anything in this Agreement be construed to conflict with HOME
regulations, the regulations shall prevail.
Subrecipient Administrator - HOME Consortium member(s) other than the non -Lead Entity who
perform some HOME administrative roles as delineated under separate, specific HOME written
Agreements. This term refers to the City of Kennewick and/or the City of Pasco.
Tri -Cities HOME Consortium - The particular Consortium operating under the HOME Program
consisting of the Cities of Kennewick, Pasco, and Richland. These three cities are each
"Consortium Members."
III. Agreement
Section 2 — Use & Amount of HOME Funds
Use of HOME
At the Member's option, the allowable percentage (10%) of program
Funds:
income generated by the Subrecipient HOME activities may be used
Administrative &
by the Subrecipient to be applied towards eligible and allowable
planning costs
administrative costs.
related to
administering the
Eligible administrative costs include:
HOME Program and
HOME projects
Staff Costs: Salaries, wages, and related costs of Subrecipient staff
persons responsible for HOME Program administration.
Other Administrative Costs:
• Goods and services necessary for administration (such as
utilities, office supplies, etc.);
• Administrative services under third party agreements (such as
legal services);
• Providing public information;
• Fair housing activities;
• Indirect costs under a cost allocation plan prepared in
accordance with applicable OMB Circular requirements;
• Preparation of the Consolidated Plan; and
• Complying with other Federal requirements;
NOTE: Some of the costs described above can be categorized as
either a project -related soft cost or an administrative cost.
Subrecipients must count each cost as either a project -related cost or
an administrative cost, but may not count a cost as both. In other
words, the Subrecipient cannot be reimbursed twice for the same
HOME Subrecipient Agreement - Administrative Activities 2014 Page 3 of 14
Amount of HOME
The Subrecipient may receive up to ten percent (10%) of the program
Funds:
income generated by HOME activities overseen and/or implemented
by the Subrecipient.
Administrative
Administrative costs over the allowable percentage of program
Costs Exceeding
income are the responsibility of the Subrecipient.
the Allowable 10%
Section 3 — Disbursement of Funds (85.22)
The Subrecipient may request funds under this Agreement only when a written agreement (24
CFR 92.504(c)) has been fully executed, the funds are needed for payment of specific allowable
costs (24 CFR 92.206), and only in amounts needed to pay such costs as identified in 24 CFR
85.22. The Subrecipient shall provide clear documentation of administrative costs to be
reimbursed by the HOME program. Documentation may include, but is not limited to, staff
timesheets, description of administrative activities conducted by staff, and receipts for supplies
and/or office rent. The Subrecipient shall be reimbursed for eligible administrative costs after
review and approval by the Lead Entity of invoices, statements, billings, and other supportive
documentation. Upon prior approval by the Lead Agency, the Consortium may pay a vendor or
contractor directly.
Section 4 — Subrecipient Administrator Responsibilities.
The Subrecipient Administrator shall be responsible for the following:
To supply to the Lead Entity, within fourteen (14) days after request, copies of all
documents which the Lead Entity is required to submit to HUD, including, but not limited to,
the Consortium Member's HOME -related Consolidated Planning Strategy and Annual
Action Plan.
To supply to the Lead Entity a written description(s) of their HOME program(s) prior to
contracting with another entity to deliver the program(s). Lead Entity retains final approval
and contracting authority. Descriptions should include:
o copies of program description
o listing of responsible staff for each step in the delivery of the program
o methods of affirmative marketing
o methods of procurement
o steps taken and standards imposed for the application and review process
leading to the award of funds
• To utilize Consortium -approved forms, policies, and procedures.
• To affirmatively further fair housing in their jurisdictions. Such actions may include planning,
education, outreach, and enforcement activities.
• To provide quarterly and annual performance reports to the Lead Entity regarding HOME
activities.
• To provide other documents as required by separate HOME written agreements governing
relationship between the Lead Entity and Members acting as Subrecipient Administrators.
HOME Subrecipient Agreement - Administrative Activities 2014 Page 4 of 14
Section 5 — Relationship
The relationship of the Subrecipient to the Consortium shall be that of an independent agency.
Nothing herein shall be deemed to create the relationship of employer/employee or
principal/agent between the parties.
Section 6 — Modifications and Amendments
This Agreement may only be amended in writing signed by the Consortium and the
Subrecipient. All modifications and amendments to this Agreement shall be in writing; such
modification or amendment shall not take effect until specifically approved in writing by the Lead
Entity of the Consortium and signed by all parties to this Agreement.
Section 7 — Waivers
No conditions or provisions of this Agreement shall be waived unless approved by the
Consortium in writing.
Section 8 — Assignment
The Subrecipient shall not assign any interest in this Agreement, and shall not transfer any
interest in this Agreement to any party (whether by assignment or novation) without prior written
consent of the Consortium.
Section 9 — Severability
If any provision of this Agreement, or portion thereof, is held invalid by any court of rightful
jurisdiction, the remainder of this Agreement shall not be affected, providing the remainder
continues to conform to applicable Federal and State law(s) and regulations and can be given
effect without the invalid provision.
Section 10 — Insurance and Bonds
The Subrecipient and its employees, volunteers, contractors or consultants shall carry
throughout the life of this Agreement, General Liability Insurance, Comprehensive Automobile
Liability Insurance and other such coverage as may be appropriate or required by State or
Federal law, for the services to be performed. This insurance shall include the following:
Professional Legal Liability: Subrecipient shall maintain Professional Legal Liability or
Professional Errors and Omissions coverage appropriate to the Subrecipient's
profession and shall be written subject to limits of not less than $1 million per claim and
$1 million policy aggregate limit. The coverage shall apply to liability for a professional
error, act, or omission arising out of the scope of the work for this Agreement. Coverage
shall not exclude bodily injury, hazards, or property damage related to the work in this
Agreement, including testing, monitoring, measuring operations, or laboratory analysis
where such services are rendered as part of the Agreement.
HOME Subrecipient Agreement - Administrative Activities 2014 Page 5 of 14
2. Worker's Compensation (Industrial Insurance): Workers' Compensation insurance as
required by Title 51 RCW shall be maintained, and Subrecipient shall provide evidence
of coverage if so required.
3. Commercial General Liabilitv: Commercial General Liability coverage shall be written on
ISO occurrence form CG 00 01 and shall cover liability arising from premises,
operations, independent contractors, personal injury and advertising injury. The
insurance shall include the Consortium, its members, officers, officials, employees and
agents with respect to performance of services, and shall contain no special limitations
on the scope of protection afforded as an additional insured. If this Agreement is over
$50,000 then Employers Liability Coverage shall also be maintained. Coverage shall
include limits of not less than $1 million per occurrence, and $2 million aggregate.
4. Automobile Liability: Business Automobile Liability insurance with a minimum combined
limit no less than $1 million per accident for bodily injury and property damage shall be
maintained. Coverage shall include owned, hired, leased, and non -owned automobiles.
Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a
substitute form providing equivalent liability coverage. If deemed necessary, the policy
shall be endorsed to provide contractual liability coverage.
Insurance is to be placed with insurers with a current A.M. best rating of not less than A: VII.
Subrecipient shall furnish the Consortium with original certificates and a copy of the amendatory
endorsements, including but not necessarily limited to the additional insured endorsement,
evidencing the insurance requirements prior to the commencement of the work.
The insurance coverage shall be primary with respect to any insurance or self-insurance
covering the Consortium, its members, elected and appointed officers, officials, employees and
agents. Any insurance, self-insurance, or insurance pool coverage maintained by the
Consortium shall be excess of the Subrecipient's insurance and shall not contribute with it.
Subrecipient shall give 30 days' prior written notice by certified mail, return receipt requested, to
the Consortium prior to any attempt to cancel any insurance policy maintained under this
Agreement.
Section 11 — Procurement Standards (84.40-48 Non Profit or 85.36(b) Government)
If applicable to its HOME administration activities, the Subrecipient will establish procurement
procedures to ensure that materials and services are obtained in a cost-effective manner. At a
minimum, the Subrecipient shall comply with the nonprofit procurement standards at 24 CFR
84.40-48, or 24 CFR 85.36(b) for governmental entities.
Section 12 — Conflict of Interest (92.356)
Generally, no employee, agent, member, consultant, officer or elected or appointed official of
the members in the Consortium or Subrecipient who exercises or has exercised any functions or
responsibilities with respect to any activities that are in any way connected with the decision to
provide the HOME Funds may obtain a financial interest, reside in, or benefit from those
activities, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for themselves or those with whom they have family or business
ties, during their tenure or for one year thereafter as stated in 24 CFR 92.356, and the
Subrecipient must take appropriate steps to assure compliance.
HOME Subrecipient Agreement - Administrative Activities 2014 Page 6 of 14
Section 13 — Records (92.508)
Records documenting time and costs related to HOME administration must be kept which
demonstrate compliance with this Agreement and related regulations of the HOME Program 24
CFR 92.
Records must be kept by the Subrecipient and be made available to the Consortium that
demonstrate compliance with this Agreement and with 24 CFR 92.508. Records must be
maintained for at least five (5) years after expenditure of administrative funds, except when any
of the following apply:
Records that are the subject of audit findings must be retained for three (3) years after
such findings have been resolved;
2. Records for non -expendable property (as defined in OMB Circular #A-110 for non-profit
organizations) shall be retained for three (3) years after final disposition of the property.
If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started
before the expiration of the required record retention period, records must be retained until
completion of the action and resolution of all issues which arise from it, or until the end of the
required period, whichever is later.
Upon request, the Subrecipient agrees to immediately provide to the Lead Entity any and all
information to document compliance with the HOME Program and related laws, rules,
regulations and policies.
Section 14 — Public Records
The Subrecipient understands that this Agreement is subject to public records disclosure
pursuant to RCW 42.56 and agrees to timely provide documents as required by law. The
Subrecipient shall indemnify, defend and hold harmless the Lead Entity of the Consortium for
any liability arising out of the Subrecipient's failure to produce public records as required.
Section 15 — Monitoring
At least annually, or more often if deemed necessary, the Lead Entity will monitor the
performance of the Subrecipient to assure compliance with the requirements of this Agreement.
The review may include on-site inspections and review of records to determine compliance with
this Agreement through the contract period. Monitoring forms primarily used can be found at:
httr):/Iportal.hud.gov/hudr)ortal/HUD?src=/I)rogram offices/administration/hudclios/handbooks/cod/6509 2
Chapter 7 for the HOME Investment Partnership Program.
The Subrecipient agrees to provide any and all information to the Consortium to assist in
meeting administrative and monitoring requirements. The Subrecipient agrees to work
cooperatively with the Consortium to assist in meeting its obligations to HUD.
HOME Subrecipient Agreement - Administrative Activities 2014 Page 7 of 14
Any duly authorized representative of the U.S. Department of Housing and Urban Development,
authorized federal or state agent, or the Consortium shall at all reasonable times have access to
and the right to inspect, copy, audit, and examine all books, records and other documents
relating directly to the Subrecipient's receipt and disbursement of the HOME funds. The
Subrecipient agrees to immediately correct any deficiencies as noted by the Lead Entity, HUD,
and/or other authorized entities.
Section 16 — Financial Responsibility & Timeliness of Reimbursement Requests
The Subrecipient agrees that it is financially and legally responsible for any monitoring/audit
exception which occurs due to its negligence or failure to comply with the terms of this
Agreement and/or HOME regulations. The Subrecipient acknowledges that failure to submit
reimbursement requests with all appropriate supportive documentation within 120 days of
incurring administrative costs shall result in those costs becoming the financial responsibility of
the Subrecipient.
Section 17 — Indemnification
The Subrecipient will save and hold harmless and indemnify the Lead Entity against any and all
liability, claims and costs of whatever kind and nature for injury to or death of any person or
persons, and for loss or damage to any property, occurring in connection with or in any way
incident to or arising out of activities undertaken under this Agreement. Further, Subrecipient
shall reimburse the Lead Entity for all costs incurred in connection with a negative audit finding
resulting from Subrecipient's negligent or willful mismanagement of HOME funds, or its
negligent or willful disregard for the laws, rules and regulations governing the HOME Investment
Partnership Program.
Section 18 — Corrective and Remedial Action
Subrecipient will immediately correct or cause to be immediately corrected any and all actions
or performance deficiencies in the project as may be determined by the Lead Entity, or the U.S.
Department of Housing and Urban Development (HUD). Failure to correct such actions or
performance deficiencies within thirty (30) days from written notification from the Lead Entity
may result in suspending the disbursement of HOME administrative funds, suspending all
HOME funded projects, cancellation of this contract and other HOME Program contracts,
reprogramming of HOME funds to other eligible activities, and/or repayment of the HOME funds
by the Subrecipient from non-federal sources.
Section 19 — Attorney's Fees -Costs
In the event of a lawsuit between the parties to this Agreement, the prevailing party shall be
entitled to recover judgment against the other party for reasonable attorney's fees and other
costs either at trial or on appeal. If either party exercises any non -judicial right or remedy to
enforce such party's rights hereunder, it shall be a condition for the cure of the default that the
defaulting party will pay the non -defaulting party's reasonable attorney's fees incurred and all
reasonable costs. Failure to pay such costs and reasonable attorney's fees shall constitute an
event of default under this Agreement.
Section 20 — Venue and Law
HOME Subrecipient Agreement - Administrative Activities 2014 Page 8 of 14
Except where federal law controls, this Agreement shall be governed by the laws of the State of
Washington. Venue for any action under this contract shall be in Benton County, Washington.
Section 21 — Suspension or Termination of Agreement
The Consortium may cancel this Agreement "for cause" or "not for cause" by providing written
30 days' notice by certified mail, return receipt requested, to the other signatory members of this
Agreement.
There are three (3) separate methods of suspension or termination of this Agreement:
i. By fulfillment. The Agreement will be considered to be terminated upon fulfillment of
its terms and conditions.
By mutual consent. The Agreement may be terminated or suspended in whole or in
part, at any time, if both parties consent to such termination or suspension. The
conditions of the suspension or termination shall be documented by giving a minimum
of 30 days' written notice.
iii. For cause. The Consortium may suspend or terminate this Agreement in whole or in
part, for cause, when the Subrecipient has failed in whole or in part to meet its
commitments and obligations as outlined, and when the Consortium deems
continuation to be detrimental to its interest. Failure to carry out the project as
described and in compliance with HOME Program regulations found at 24 CFR 92 will
be deemed a failure to perform, and cause the immediate relinquishment of any
interest in future HOME funds and/or require repayment of expended HOME funds.
In the event of suspension, the Consortium will notify the Subrecipient in writing of the corrective
action required. Further payment may be withheld at the Consortium's discretion until the
Subrecipient causes corrective action or the Agreement is terminated.
"For cause" includes:
a. failure to comply with the terms and conditions of this Agreement, or to
substantiate compliance;
b. Improper or illegal use of project funds or resources;
C. Any illegal act by the Subrecipient and its representatives.
Failure to submit required reports on or before due date or failure to document
compliance with the terms and conditions contained herein.
In the event of termination, the Lead Entity will notify the Subrecipient in writing of its
determination to terminate, the reason for such termination, and the effective date of the
termination. Payments made to the Subrecipient or recoveries by the Consortium will be in
accordance with the legal rights and liabilities of the parties. Recoveries include all HOME funds
on hand at the time of Agreement termination, any accounts receivable attributable to the use of
HOME funds, and any other assets acquired with HOME funds.
HOME Subrecipient Agreement - Administrative Activities 2014 Page 9 of 14
Actions by either party under this article shall not constitute a waiver of any claim by either party
arising from conditions or situations leading to such suspension or termination.
HOME funds not committed to specific projects as of the cancellation date will be relinquished to
the Consortium for redistribution to other qualified projects.
Section 22 — Dispute Resolution
The Lead Entity and the Subrecipient agree to negotiate in good faith for a period of 30 days
from the date of notice of all disputes between them prior to exercising their legal rights under
this Agreement or other law. All disputes not resolved by negotiation between the parties may
be arbitrated only by mutual agreement of the parties. If not mutually agreed to resolve the claim
by arbitration, the claim will be resolved by legal action. Arbitration of all claims will be in
accordance with the RCW 7.04A and the mandatory rules of arbitration with venue being placed
in Benton County, Washington. Arbitration shall include an award to the prevailing party of its
reasonable attorney fees and costs in action against the other.
Section 23 - Debarment and Suspension (2 CFR 2424)
The Subrecipient may not award or permit an award of a contract to any party which is
debarred, suspended or ineligible to participate in a federal program. The Subrecipient certifies
that it is not debarred, suspended or ineligible to participate in a federal program. The
Subrecipient will submit to the Consortium the names of contractors and any subcontractors
prior to signing contracts to ensure compliance with 24 CFR Part 24, "Debarment and
Suspension." The Subrecipient will also assure that language pertaining to debarred,
suspended or ineligibility to participate is inserted in all contract agreements. If, during the time
of this Agreement, the Subrecipient is debarred, suspended or ineligible to participate in a
federal program, the Consortium may terminate this Agreement for cause.
Section 24 — Financial Management and Audits (92.506)
The Subrecipient shall adhere to the generally accepted accounting principles and procedures
issued by the American Institute of Certified Public Accountants, and will utilize adequate
internal controls and maintain necessary source documentation for all costs incurred. The
Subrecipient shall comply with cost principles as established by OMB Circulars A-87, relocated
to 2 CFR, Part 225, and with administrative requirements at A-102 if a state, local government,
or Indian tribe. If the Subrecipient is a non-profit organization, it will comply with cost principles
of OMB Circular A-122, relocated to 2 CFR, Part 230, and administrative requirements
established at OMB Circular A-110. All costs must be reasonable and necessary.
The Subrecipient shall also comply with auditing standards issued by the Comptroller General of
the United States and be conducted in accordance with 24 CFR 84.26 and 85.26. All
subrecipients who expend $500,000 or more in a year in federal awards, whether a direct
subrecipient of this Agreement or a sub-subrecipient receiving federal funds through a pass-
through entity, shall have a single audit conducted for that year in accordance with the provision
of OMB A-133, Subpart B. When a Subrecipient expends federal awards under only one federal
program, excluding Research and Development performed by a non-federal entity, and the
program's laws, regulations, or grant agreements do not require a financial statement audit, the
subrecipient may elect to have a program -specific audit conducted in accordance with Subpart
B, Section 235. A program -specific audit may not be elected for Research and Development
HOME Subrecipient Agreement - Administrative Activities 2014 Page 10 of 14
unless all of the federal awards expended were received from the same federal agency, or the
same federal agency and the same pass-through entity, and that federal agency, or pass-
through entity approves in advance a program -specific audit. The audit must be conducted
within 60 days of completion of this Agreement.
Non-federal entities who expend less than $500,000 a year in federal awards are exempt from
federal audit requirements for that year, except this does not limit the authority of federal
agencies, including HUD, Inspectors General, or General Accounting Office to conduct or
arrange for additional audits. All records shall be made available for review or audit by
appropriate local, state and federal entities.
Section 25 — DUNS Number
A Dun and Bradstreet Data Universal Numbering System (DUNS) number is required for any
business or agency that receives federal assistance per the Federal Funding Accountability and
Transparency Act of 2006 (FFATA). The Subrecipient will provide information on itself, will
assure that all assisted agencies/businesses have been assigned a DUNS number, and shall
provide this information to the Lead Entity. A free DUNS number may be requested via the web
at http://fedqov.dnb.com/webform/index.*sp or by calling 1-866-705-5711.
Section 26 — SAM Registration
The Federal Funding Accountability and Transparency Act of 2006, as amended (FFATA)
requires the Office of Management and Budget (OMB) to maintain a single, searchable website
that contains information on all federal spending awards. As part of this, all agencies/businesses
that meet the following thresholds must register in SAM and report to the Consortium if they
had:
a) A gross income from all sources over $300,000 in the agency's previous tax year;
and
b) Are awarded HOME funds of $25,000 and over.
This information must be reported to the Consortium within five (5) days of signing this
Agreement. Free registration can be obtained at https://www.sam.gov/portal/public/SAM/.
Because this registration expires annually, it must be updated and kept current during the
contract period. The Subrecipient will provide information on itself and will assure that all
assisted agencies/businesses have registered and remain current in SAM. Additional
information is required if more than 80% of annual gross revenues of $25 million or more come
from the federal government, and employee and compensation information is not already
available through reporting to the SEC.
Section 27 — Reversion of Assets
Upon expiration of this Agreement, any HOME funds or accounts receivable that can be
attributed to the use of HOME funds will revert to the Lead Entity of the Consortium. Should the
Consortium Member stop participating in consortium programs or fail to perform in compliance
with program requirements, assets are subject to reversion to the Lead Entity.
Section 28 — Drug Free Workplace
HOME Subrecipient Agreement - Administrative Activities 2014 Page 11 of 14
In accordance with the Drug Free Workplace Act of 1988, Subrecipient will, or will continue to,
provide a drug-free workplace by:
1. Publishing a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited in the workplace,
and specifying the actions that will be taken against employees for violation of such
prohibition;
2. Establishing an ongoing drug-free awareness program to inform employees about:
a) The dangers of drug abuse in the workplace;
b) The Subrecipient/employer's policy of maintaining a drug-free workplace;
C) Any available drug counseling, rehabilitation, and employee assistance
programs; and
d) The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
3. Making it a requirement that each employee to be engaged in the performance of the
grant be given a copy of the statement required by paragraph 1;
4. Notifying the employee in the statement required by paragraph 1 that, as a condition of
employment under the grant, the employee will:
a) Abide by the terms of the statement; and
b) No later than five (5) calendar days after such conviction, notify the employer in
writing of his or her conviction for a violation of a criminal drug statute occurring
in the workplace;
5. Notifying the agency in writing within ten (10) calendar days after receiving notice under
subparagraph 4(b) from an employee, or otherwise receiving actual notice of such
conviction. Employers of convicted employees must provide notice, including position
title, to every grant officer or other designee on whose grant activity the convicted
employee was working, unless the federal agency has designated a central point for the
receipt of such notices. Notice shall include the identification number(s) of each affected
grant;
6. Taking one of the following actions, within 30 calendar days of receiving notice under
subparagraph 4(b), with respect to any employee who is so convicted:
a) Taking appropriate personnel action against such an employee, up to and
including termination, consistent with the requirements of the Rehabilitation Act
of 1973, as amended; or
b) Requiring such employee to participate satisfactorily in a drug abuse assistance
or rehabilitation program approved for such purposes by a federal, state, or local
health, law enforcement, or other appropriate agency;
7. Making a good faith effort to continue to maintain a drug-free workplace by
implementation and enforcement of this article while carrying out all HOME Program -
related activities.
HOME Subrecipient Agreement - Administrative Activities 2014 Page 12 of 14
Section 29 — Anti -Lobbying Certification
To the best of the signatory party's knowledge and belief
No federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person
for influencing or attempting to influence an officer or employee of any agency, a member of
Congress, an officer or employee of Congress, or an employee of a member of Congress in
connection with the awarding of any federal contract, the making of any federal grant, the
making of any federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any federal contract, grant, loan, or
cooperative agreement;
If any funds other than federal appropriated funds have been paid or will be paid to any person
for influencing or attempting to influence an officer or employee of any agency, a member of
Congress, an officer or employee of Congress, or an employee of a member of Congress in
connection with this federal contract, grant, loan, or cooperative agreement, it will complete and
submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions; and
The language of the above paragraphs of this anti -lobbying certification must be included in the
award documents for all sub -awards at all tiers (including subcontracts, sub -grants, and
contracts under grants, loans, and cooperative agreements) and all subrecipients/sub-
subrecipients shall certify and disclose accordingly.
The signatory parties are in compliance with restrictions on lobbying required by 24 CFR Part
87, together with disclosure forms, if required by that part.
Section 30 — Uniform Administrative Requirements (92.505)
Governmental subrecipients must comply with OMB Circular A-87 for determining allowable
costs and the following sections of 24 CFR Part 85:
85.60 Additions and Exceptions
85.12 Special Grant or Subgrant Conditions for "high-risk" Grantees
85.20 Standards for financial management systems
85.22 Allowable costs
85.26 Non -Federal Audit
85.32 Equipment
85.33 Supplies
85.34 Copyrights
85.36 Procurement
85.44 Termination for Convenience
85.51 Later Disallowances and Adjustments
85.52 Collection of Amounts Due
HOME Subrecipient Agreement - Administrative Activities 2014 Page 13 of 14
The Agreement will be effective upon the date of signing by the City of Richland, Lead Entity of
the Tri -Cities HOME Consortium.
SUBRECIPIENT: City of [Pasco/Kennewick] CONSORTIUM:
Signature
Print Name and Title
APPROVED AS TO FORM:
Heather Kintzley, City Attorney
City of Richland
Date
Tri -Cities HOME Consortium
P.O. Box 190, MS 19
Richland, WA 99352
Cynthia D. Johnson, City Manager Date
City of Richland
HOME Subrecipient Agreement - Administrative Activities 2014 Page 14 of 14
AGENDA REPORT NO. 37
FOR: City Council January 7, 2015
TO: Dave Zabell, City Manager
FROM: Ahmad Qayoumi, Public Works Director Workshop Mtg.: 1/12/2015
Regular Mtg.: 1/20/2015
SUBJECT: Argent Road Widening Professional Services Agreement — Amendment No. 1
I. REFERENCE(S):
1. Argent Road Widening — Amendment No. 1 Summary Sheet
2. Argent Road Widening — Area Vicinity Map
3. Argent Road Widening —Argent Rd/Rd 36 Intersection Map
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
1/12: Discussion
1/20: MOTION: I move to approve Amendment No. 1 to Professional Services
Agreement with MacKay Sposito, continuing professional
services with respect to the Argent Road Widening Project, in the
amount of $13,905.29 and change the completion date to May 31,
2015 and further, authorize the City Manager to execute the
agreement.
HI. FISCAL IMPACT:
Arterial Fund — $13,905.29
IV. HISTORY AND FACTS BRIEF:
A) Argent Road is a principal arterial that provides vital east and west connection from
4th Avenue to Road 100. One section of the corridor (20'b Ave to Road 44) runs
along Port of Pasco and Columbia Basin College property.
B) In early 2011, the Port of Pasco and Columbia Basin College entered into discussions
regarding the future of Argent Road and the needs of the Port of Pasco, Pasco
Airport, the Fire Department, Columbia Basin College and the City as the area grows
and additional demand is placed on the corridor.
C) In October 2011, the City entered into an agreement with MacKay Sposito to deliver
a conceptual design development phase for the corridor from 20" Ave to Road 44.
The concept development scope included road widening to five lanes to meet the
future and current needs of the area, landscaping, bike lanes and access management.
D) Through a number of interactions and meeting with the Port of Pasco and Columbia
Basin College, a final concept plan was developed.
E) City staff allocated federal funds in the amount of $200,000 for the design of the
project.
V. DISCUSSION:
A) During the design phase of the project a traffic study was completed for the Argent
Road Corridor from 20"' Avenue to Rd 44. This traffic study showed that all
warrants are met for a new signal to be installed at the intersection of Argent Rd and
Rd 36. At the time of the original contract it was not known if a new signal would be
warranted at this location, so the design cost of this new signal was not included in
the original contract. The work needed for this design was shown as an optional task
15 in the original scope of work in the event that a traffic study was needed at the
intersection. The new traffic signal will improve safety and traffic flow through the
corridor. Design cost for this addition work will be $13,905.29.
B) The original Professional Services Agreement was scheduled to begin April 1, 2013
and end December 31, 2014. Due to unexpected delays in the project, outside of the
consultant's control, and the addition of a new traffic signal, the design of the project
is anticipated to be completed by May 31, 2015.
C) It is the City's goal to construct the traffic signal as Phase I, while seeking available
grants to complete the road improvements.
4(e)
MacKay sposito
To: CITY OF PASCO
Attn: Ahmad Clayoumi
City of Pasco
525 N. 3id Avenue
Pasco,
DATE: NOVEMBER 20, 2014
CHANGE ORDER # 2
FOR: 15620
Argent Road Widening Project
All terms and conditions of Contract dated May 18, 2013 shall apply to this authorization to provide necessary professional services and
professional costs to perform the following task(s). Per the signed contract, extra services will be billed on a time -and -materials basis.
However, for budgeting purposes an estimated date and cost to complete the tasks are provided below.
DESCRIPTION / SCOPE OF CHANGE ORDER AMOUNT
Task 15.0 Signal Design for Argent Road and Road 36 Intersection (Final Design) as previously proposed in
original contract. $13,905.29
TOTAL 1 $13,905.29
OriginalContract Amount.........................................................................................................................................
$225,416.00
Previous Change Orders Subtotal..............................................................................................................................
$1,712.00
Total Contract Amount to Date..................................................................................................................................
$ 227,128.00
CurrentChange Order Amount................................................................................................................................
$13,905.29
RevisedContract Amount.........................................................................................................................................
$ 241,033.29
Estimated Completion Date: March 31, 2015
Work Authorized By:
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AGENDA REPORT NO. 29
FOR: City Council
TO: Dave Zabell, City Manager k-45
Ahmad Qayoumi, P.E., Public Works Director
FROM: Kent McCue, Interim Engineering Manager l"
SUBJECT: 90'& Washington Lift Station VFD Equipment
I. REFERENCE(S):
1. 9h & Washington VFD Equipment - Proposed Resolution
2. 9"& Washington VFD Equipment - Price Quote
3. 9" & Washington VFD Equipment — Memo
January 8, 2015
Workshop Mtg.: 1/12/15
Regular Mtg.: 1/20/15
H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
01/12: Discussion
01/20: MOTION: I move to approve Resolution No. , waiving competitive
bidding requirements and approving the purchase of Variable Frequency
Drive (VFD) units and the Programmable Logic Controller (PLC), and
approving install of the equipment.
III. FISCAL IMPACT:
Sewer Funds
IV. HISTORY AND FACTS BRIEF:
A) The Public Works Department Plan Division is requesting the installation of new Allen-Bradley
Variable Frequency Drive (VFD) units, Programmable Logic Controllers (PLC), and associated
electrical appurtenances for controlling the pumps in the 9h & Washington Sanitary Sewer Lift
Station. A VFD is a type of adjustable -speed drive used in the electro -mechanical drive
systems to control AC motor speed and torque by varying motor input frequency and voltage.
The PLC is the "brain" behind the entire lift station control and functionality. The unit
monitors wet well levels which sends a message to the VFDs to start, stop, ramp up/down,
cycle pumps, etc.
B) Plant Division staff has been experiencing equipment failure on several occasions during the
past year. The existing equipment is old (installed in 1997), has been rebuilt on at least two
occasions, and is now beyond reasonable repair and is considered functionally obsolete.
C) Failure of one or more of the VFD units could yield the Lift Station inoperable, create sewer
flow backups in the system, and result in an emergency/potentially catastrophic event. The
majority of city wide sanitary sewer flows through this lift station prior to its discharge to the
wastewater treatment plant.
D) The initial installation of the equipment was completed by H&N Electric, a local company.
They have also provided all of the maintenance and repairs during the lifetime of the
equipment. The configuration of the existing system was specifically developed to conform to
the electrical and control systems used by the City.
V. DISCUSSION:
A) Allen-Bradley equipment is the current standard being used for City of Pasco Water and
Wastewater electrical plant equipment to increase serviceability and functionality. With Allen-
Bradley equipment the City would own the operating software and be able to make changes
when needed and not have to hire an outside contractor.
B) The Allen-Bradley PLC's do not use proprietary "black box" programming, which eliminates
the strict dependence on the supplier for programming modifications. A new Allen-Bradley
PLC will optimize controllability, maximize station capacity and increase station efficiency.
C) The City's Instrument Technician is fluent in Allen-Bradley software and programming; and
Allen-Bradley technicians are available locally through H&N Electric. H&N Electric originally
built the current panels and system and has serviced these units for the past 17 years. Using
H&N Electric will save time and money as they would not have to re-engineer the project.
Additionally, H&N Electric has the VFD specialist who worked on the initial build of the
current VFD's and who has performed the work on the system since its installation.
D) Original funding for this project was slated under 2014's maintenance budget. In late January
2015 the funds will be reallocated through a supplemental budget request.
4(f)
RESOLUTION NO.
A RESOLUTION WAIVING COMPETITIVE BIDDING REQUIREMENTS FOR THE
PURCHASE OF NEW VARIABLE FREQUENCY DRIVES (VFDs) AND ALLEN -BRADLEY
PROGRAMMABLE LOGIC CONTROLLER (PLCs) AND AUTHORIZING THE PURCHASE AND
INSTALLATION OF SAID EQUIPMENT BY H&N ELECTRIC.
WHEREAS, the existing VFDs are becoming unreliable due to age and lack of spare parts, and
must be replaced to maintain proper operation, and
WHEREAS, the City is now considering conversion to Allen-Bradley equipment to increase
serviceability and functionality, whenever existing outdated equipment is routinely replaced, and
WHEREAS, it is functionally desirable for the City to be able to own the operating software and
for City staff to be able to make changes when needed for ease of maintenance and efficiencies in order to
facilitate consistent and dependable operations, and
WHEREAS, the purchase of VFDs and Allen-Bradley PLCs will allow the City to reduce the
costs of operation, maintenance and repair, and the inventory of parts by having one system that is easily
programmable from a remote location, and
WHEREAS, H&N Electric installed and has provided all of the maintenance on the existing
equipment and system, and
WHEREAS, pursuant to RCW 39.04.280 H&N Electric is the sole source of the VFDs and
Allen-Bradley PLCs that are interchangeable with the equipment already installed, and the sole source
that will allow the City to interchange equipment; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, that the City
Council does hereby declare that the purchase of VFDs and Allen-Bradley PLCs is clearly and
legitimately limited to a single source of supply, and that the sole source of supply is H&N Electric, and
BE IT FURTHER RESOLVED, that the competitive bidding requirements for the City of
Pasco are hereby waived and the Pasco Public Works Department is authorized to purchase VFDs and
Allen-Bradley PLCs from H&N Electric who will install said equipment for the sum of $
PASSED by the City Council of the City of Pasco this 19th day of January, 2015.
Matt Watkins
Mayor
ATTEST:
Debra L. Clark
City Clerk
APPROVED AS TO FORM:
Leland B. Kerr
City Attorney
Kent McCue
From: Barney, Kim M. <kbarney@hnelectric.com>
Sent: Friday, September 26, 2014 2:51 PM
To: Todd Marden
Subject: RE: Contractor
Good afternoon Todd,
Below is a re -quote based on the quote of Aug. 29th to Brett C. and adding a line item for installation. Let me know if
you need anything further. We are looking forward to helping you complete this project!
Regards,
Kim
Brett,
We basically finished with the design work for the 4 retrofit UL assemblies for 9th & Washington. I know this took a bit
longer than I had hoped, but Mike and Steve had to make sure all the issues related to the retrofit were addressed, of
which there were quite a number. Anyway, I think we have a tentative 'final design" that will work like you want. Here
are costs for the basic assemblies/back panels, which would have all the components for a complete working system
once installed.
1) 75hp, UL Back panel assembly, w/New SVX9000, 75hp CT1100hp VT Drive, Nema 1, input fusing, w/remote keypad
kit, adapter plate, control power transformer, Thermostat (cooling), output filter, terminals/relays as required $
11,240.00 ea. (x 2 )
2) 150hp, UL Back panel assembly, w/New SVX9000, 125hp CT/150hp VT Drive, Nema 1, input fusing, w/remote
keypad kit, adapter plate, control power transformer, Thermostat (cooling), output filter, terminals/relays as
required $15,454.00 ea.
3) 150hp, UL Back panel assembly, w/ New SVX9000, 125hp CT/150hp VT Drive, Nema 1, w/ New 5811, Solid State
Starter Bypass (3 contactor), w/remote keypad kit adapter plate, control power transformer, Thermostat (cooling),
output filter, 24VDC Power supply, terminals/relays as required
$11,817.00 ea.
4) Installation of the 4 pre -assembled Back Panels above. Includes all work @ prevailing wage, electrical permit. $
17,950.00
Total for 4 drive packages and install - $ 79,701.00
Regards,
Kim
Kim Barney
Electrical Services Manager
H & N Electric—A Timken Brand
4224 E. B Street
Pasco, Washington 99301
PH: (509) S47-1691, EXT: 739
Memo
To: Dave Zabell, City Manager
Ahmad Qayoumi, PE, Public Works Director
From: Michael A. Pawlak, PE, City Engineer
Date: November 18, 2014
Public Works Department
Engineering Division
Re: 9''& Washington Lift Station Programmable Logic Controller (PLC) Equipment— Sole
Source
Introduction. The Public Works Department Plant Division has requested the installation of a new
Programmable Logic Controllers (PLC), and associated electrical appurtenances for controlling the
pumps in the 9"' & Washington Sanitary Sewer Lift Station. (A programmable logic controller,
PLC or programmable controller is a digital computer used for automation of typical industrial
electro -mechanical processes, such as control of machinery on factory assembly lines, amusement
rides, or light fixtures. PLCs are used in many industries and machines.) Plant Division staff has
been experiencing equipment failure at the Lift Station, on several occasions during the past year.
Staff has determined that it is necessary to update the existing controller equipment.
Evaluation. Plant Division staff has been experiencing failure of the Variable Frequency Drives
(VFDs) that drive the pumps at the Lift Station on a more frequent basis over the past year. The PLC
is the "brain" behind the entire lift station control and functionality.
Members of the Engineering Division have had numerous conversations with Derek Benningfield
regarding the use of various manufactured Programmable Logic Controllers (PLCs) at City of Pasco
water and wastewater facilities. Derek has suggested that we migrate from the use of Siemens PLC
equipment to Rockwell's Allen-Bradley PLC equipment on all new and remodel installations of the
City's supervisory control and data acquisition (SCADA) system. Upon listening to Derek's rationale
and conferring with Murray Smith and Associates (the City's Consultant on the Columbia Water
Supply Intake Project), a recommendation was made to City Council to sole source Allen-Bradley
PLCs on that project. That recommendation was approved by Council on November 3, 2014.
Either brand of PLC is likely reliable and capable of operating the City's SCADA system, as
evidenced by the fact that the City has owned and operated equipment from both manufacturers.
The more significant issues concerning the City are the ease of maintenance/modification of the
programming software and the availability of outside support in the event City staff cannot correct a
problem within the system. Maintenance issues seldom seem to be concerned with which PLC is
actually in use, but rather with how easy it is to understand the operating program and how the
affected instruments and separate components are attached to the system. For SCADA system
0 Page 1
maintenance personnel, software is very essential and needs to be straightforward, readily usable,
and easily modified. The product supplied by Siemens does not provide these features.
As in many regions of the United States, it is hard to find local Siemens support talent. Our current
use of Siemens equipment requires a sole source maintenance arrangement with S&B, Inc., located
in Bellevue, Washington. Additionally, S&B uses proprietary programming within a "black box" which
leaves the City further dependent upon them for subsequent modifications to the PLC coding. By
definition, S&B's on-site response time from Bellevue is often less than ideal and does not satisfy the
immediate needs of continuously maintaining a reliable municipal system.
Conversely, as Rockwell's Allen-Bradley has always been viewed in the U.S. as the benchmark for
easy to use software, experienced local support for Allen-Bradley PLC installations is more readily
available. In addition, the City's Instrumentation Technician has 15 years of experience working with
Allen-Bradley equipment and can personally modify the open sourced programming of these PLCs to
better match the needs of the City's water/sewer/irrigation support personnel. All future
instrumentation technicians hired by the City will also have (or receive training) the ability to work with
the open source code of the Allen-Bradley PLCs.
The SCADA system at the City's Process Water Reuse Facility (PWRF) is a prime example of an in-
house success story. During construction of the recent expansion project, Allen-Bradley PLCs were
substituted for the previously specified Siemens PLCs. Since completion of the project, the City's
Instrumentation Technician has, performed numerous small adjustments to the control logic
programming at the request of the PWRF staff, in order to fine tune the operation of the facility.
Utilization of S&B to perform these modifications on a propriety Siemen's system would have likely
been both more time consuming and costly.
Responses to the Sole Source Worksheet questions. The following are responses to the Sole
Source Worksheet developed by the City Attorney for the purposes of ensuring that a reasonable
and rationale evaluation is conducted in accordance to WA State Law for these types of purchases.
1. Please describe the items and its function:
The 9t' and Washington Lift Station pumps approximately 75% of Pasco's wastewater
through the system and to the Wastewater Treatment Plant. The existing VFDs that control
the pumps are experiencing periodic failure (which often precedes complete failure); a failure
of one or more of those units would yield the Lift Station inoperable, create sewer flow
backups in the system, and result in an emergency / potentially catastrophic event including
but not limited to potential discharge of raw sewage to the Columbia River.
The PLC is the "brain" behind the entire lift station control and functionality. This unit monitors
wet well levels which sends a message to the VFD's to start, stop, ramp up/down, cycle
pumps etc. The existing PLC is nearly 20 years old and functionally obsolete. A new
updated Allen-Bradley PLC will optimize controllability, maximize station capacity and
increase station efficiency.
0 Page 2
2. This is a sole source because:
(a) Sole provider of items that are compatible with existing equipment, inventory systems,
programs or services.
(b) Sole provider of goods or services that will meet the specialized needs of the City or
perform the intended function.
The more significant issues concerning the City are the ease of maintenance/modification of
the programming software and the availability of outside support in the event City staff cannot
correct a problem within the system. Maintenance issues seldom seem to be concerned with
which PLC is actually in use, but rather with how easy it is to understand the operating
program and how the affected instruments and separate components are attached to the
system. For SCADA system maintenance personnel, software is very essential and needs to
be straightforward,. readily usable, and easily modified. The product supplied by Siemens
does not provide these features.
As in many regions of the United States, it is hard to find local Siemens support talent. Our
current use of Siemens equipment requires a sole source maintenance arrangement with
S&B, Inc., located in Bellevue, Washington. Additionally, S&B uses proprietary programming
within a "black box' which leaves the City further dependent upon them for subsequent
modifications to the PLC coding. By definition, S&B's on-site response time from Bellevue is
often less than ideal and does not satisfy the immediate needs of continuously maintaining a
reliable municipal system.
3. What necessary features does this vendor provide which are not available from other
vendors?
The more significant issues concerning the City are the ease of maintenance/modification of
the programming software and the availability of outside support in the event City staff cannot
correct a problem within the system. Maintenance issues seldom seem to be concerned with
which PLC is actually in use, but rather with how easy it is to understand the operating
program and how the affected instruments and separate components are attached to the
system. For SCADA system maintenance personnel, software is very essential and needs to
be straightforward, readily usable, and easily modified. The product supplied by Siemens
uses proprietary programming within a "black box' which leaves the City further dependent
upon them for subsequent modifications to the PLC coding.
Why use Allen-Bradley PLC:
• City-wide we are converting to Allen-Bradley from Siemens to increase serviceability and
functionality. Siemens (S&B programming) is proprietary software to which we do not
own the rights. With Allen-Bradley electrical equipment, we would own the operating
software and be able to make changes when needed and not have to hire an outside
contractor to do so;
• There are fewer technicians that work on Siemens products compared to Allen-Bradley;
• Allen-Bradley technicians are available locally;
• Page 3
• City of Pasco's instrument technician is fluent in Allen-Bradley software and
programming;
• The City is currently using Allen-Bradley equipment in the following locations: Ultraviolet
Disinfection Building, Headworks Building, Rotating Drum Thickener VFD's at the
Wastewater Treatment Plant, East Side Booster Pump Station, Foster Wells Road Lift
Station, Industrial Pump Station at the Process Water Reuse Facility, and the Pall water
treatment system at the West Pasco Water Plant.
• The City is currently in the process of installing Allen-Bradley equipment at: Harris Road
Irrigation Pump Station, Butterfield Water Treatment Plant, Riverview Pump Station, and
the Maitland Sanitary Sewer Lift Station.
4. What steps were taken to verify that these features are not available elsewhere?
Other brands/manufacturers were examined. Public Works staff has used both Allen-Bradley
and Siemens equipment and have found the Allen-Bradley equipment more desirable due to:
• technical support is more readily available (and local),
• equipment is easier to operate and maintain,
• equipment & controls are more flexible and can be adjusted by in-house staff
(Siemens software is proprietary and can only be adjusted by a Siemens technical
support staff member),
5. Sole source vendor certifies that the City is getting the lowest price offered for this
item.
On previous installations, Allen-Bradley PLC equipment has been competitive with similar
products from Siemens. The City will solicit bids for the furnishing and installation of the
equipment through an open bidding process to provide for overall competition.
Recommendation. Staff recommends that the City of Pasco sole source the purchase of a new
Allen-Bradley Programmable Logic Controller (PLC) for the 9`" & Washington Sewer Lift Station
through a competitive bid solicitation for the furnishing, installation, and initial programming of the
PLC and associated equipment.
• Page 4
Memo
To: Dave Zabell, City Manager
Ahmad Qayoumi, PE, Public Works Director
From: Michael A. Pawlak, PE, City Engineer
Date: November 17, 2014
Public Works Department
Engineering Division
Re: Yh & Washington Lift Station VFD Equipment — Sole Source
Introduction. The Public Works Department Plant Division has requested the installation of new
Variable Frequency Drive (VFD) units, and associated electrical appurtenances for controlling the
pumps in the 9h & Washington Sanitary Sewer Lift Station. (A VFD is a type of adjustable -speed
drive used in electro -mechanical drive systems to control AC motor speed and torque by varying
motor input frequency and voltage.) Plant Division staff has been experiencing equipment failure on
several occasions during the past year. The existing equipment is old (installed in 1997), has been
rebuilt on at least two occasions, and is now beyond reasonable repair and is considered functionally
obsolete.
Evaluation. Plant Division staff has been experiencing failure of the VFDs on the smaller sized
pumps at the Lift Station on a more frequent basis over the past year. The VFDs that control the
larger (main) pumps are the same type of equipment and a failure of one or more of those units
would yield the Lift Station inoperable, create sewer flow backups in the system, and result in an
emergency / potentially catastrophic event. The current approved 2014 Public Works Department
operating budget does include a line item for the replacement of this equipment.
Staff continuously researches equipment, suppliers and technical support providers for the various
pieces of equipment used in the wastewater treatment process, as the system is required to be
functional and operational at all times. Outside consultants and contractors are routinely used to
maintain and repair pumps, VFDs, electrical components, etc. H&N Electric (local company)
completed the initial installation and has provided all of the maintenance and repairs during the
lifetime of the equipment, for the 9'" & Washington Lift Station. The configuration of the existing
system was specifically developed for that particular lift station to conform to the electrical and control
systems used by the City.
This request to sole source the purchase and installation of specific equipment is recommended
based on the following points and more specifically addressed in the responses for the attached Sole
Source Worksheet:
0 Page 1
• The current VFDs were installed more than 18 years ago, and are outdated, functionally
obsolete, and experiencing breakdowns that could cause a potentially catastrophic event;
• Replacement parts for the existing VFDs, which were readily available in the past are now
becoming very difficult to locate due to the age of the equipment and the advent of newer
technologies and improvements;
• Cutler -Hammer "EATON" drives (VFDs) are a "like kind" replacement for the older existing
units, and are similar as VFDs used throughout other Plant Division facilities in the City;
• The Cutler -Hammer "EATON' drives are proven reliable pieces of equipment, used by the
City in other facilities associated with wastewater treatment and discharge;
• H&N Electric is familiar with the current system (having built, installed and maintained it for
nearly 20 years), provides nearly immediate response time, will not need to "learn the
installation' in order to make these upgrades, and therefore, would be more cost effective.
Responses to the Sole Source Worksheet questions. The following are responses to the Sole
Source Worksheet developed by the City Attorney for the purposes of ensuring that a reasonable
and rational evaluation is conducted in accordance to WA State Law for these types of purchases.
1. Please describe the items and its function:
The 9h and Washington Lift Station pumps approximately 75% of Pasco's wastewater
through the system and to the Wastewater Treatment Plant. The existing VFDs that control
the pumps are experiencing periodic failure (which often precedes complete failure); a failure
of one or more of those units would yield the Lift Station inoperable, create sewer flow
backups in the system, and result in an emergency / potentially catastrophic event including
but not limited to potential discharge of raw sewage to the Columbia River.
A VFD is a type of adjustable -speed drive used in electro -mechanical drive systems to
control AC motor speed and torque by varying motor input frequency and voltage. The
existing Cutler -Hammer drives have served the City well for more than 18 years. Historically,
replacement parts have been readily available but have since become increasingly more
difficult to obtain due to the age of the equipment.
The proposed new replacement equipment will be a "like kind" replacement utilizing the same
interfaces, operational protocols and features with which Plant Division staff are familiar. The
Cutler -hammer equipment would be similar to other VFDs currently being used by the City in
both Water and Wastewater operations.
H&N Electric installed and configured the existing electrical/mechanical system in the 9h &
Washington Lift Station to the customized specifications provided by the City nearly 20 years
ago. While certain pieces of equipment are being updated, the overall system will remain
intact. H&N has maintained, serviced and repaired the equipment since its installation. The
company is uniquely qualified and knowledgeable with the equipment and system having
maintained it since it was installed.
2. This is a sole source because:
(a) Sole provider of items that are compatible with existing equipment inventory systems
programs or services.
0 Page 2
(b)
Cutler -Hammer "EATON" drives are "like kind" replacements for the existing drives,
are compatible with the systems and pumps in the Lift Station and are consistent
with the equipment currently in use in other City of Pasco Wastewater treatment
and discharge facilities.
While there are more than one provider who can install VFDs in facilities, H&N
Electric is uniquely qualified in as much as the company installed to original custom-
designed system and has exclusively maintained and repaired the equipment and
operating systems for nearly 20 years. Any other installer would need to "learn the
system" to replace the old VFDs. Staff believes that another installer would take
additional time and costs would be greater. Possible downtime of the Lift Station
would also likely be greater with another installer. Minimizing downtime during
equipment replacement is extremely critical given the importance of the 9t' &
Washington Lift Station to the City's overall wastewater conveyance and treatment
system.
I What necessary features does this vendor provide which are not available from other
vendors?
H&N Electric originally built the current panels and system; since we are reusing the cabinets
and air conditioning ducting, it stands to reason that they will be able to retrofit the equipment
and instrumentation in less time and money. H&N Electric has also serviced these units for
more than 18 years; they know what Inputtoutputs are needed which will save time and
money as they will not have to re-engineer the project. Finally, this provider has the VFD
specialist who worked on the initial build of the current VFD's and who has performed the
work on the system since its installation.
Reason's for replacing VFD's:
• Current VFD's are obsolete, parts are harder and more expensive to attain;
• VFD's are becoming unreliable due to age and lack of spare parts;
• Lift station needs to have reliable and serviceable equipment to maintain proper
operation; and
• New VFD's will be able to operate larger horsepower (HP) pumps to accommodate
future growth.
4. What steps were taken to verify that these features are not available elsewhere?
While there are more than one provider who can install VFDs in facilities, H&N Electric is
uniquely qualified in as much as the company installed to original custom-designed system
and has exclusively maintained and repaired the equipment and operating systems for nearly
20 years. Any other installer would need to "learn the system" to replace the old VFDs. Staff
believes that another installer would take additional time and costs would be greater.
Possible downtime of the Lift Station would also likely be greater with another installer.
Minimizing downtime during equipment replacement is extremely critical given the
importance of the 9'' & Washington Lift Station to the City's overall wastewater conveyance
and treatment system.
0 Page 3
5. Sole source vendor certifies that the City is getting the lowest price offered for this
item.
H&N Electric has provided all of the maintenance and repair efforts on this equipment and
has historically presented the City with competitive invoices. The City will include a
certification statement in the contract agreement requiring H&N Electric to certify that the
pricing for this work will be competitive (lowest price).
Recommendation. Staff recommends that the City of Pasco sole source the purchase of new
Cutler -Hammer "EATON' variable frequency drives (VFDs) and further contract with H&N Electric for
the installation of this equipment and any appurtenances at the 9"' & Washington Lift Station.
0 Page 4
AGENDA REPORT No. 33
FOR: City Council January 8, 2015
TO: Dave Zabell, City Manager
Ahmad Qayoumi, PE, Public orks Director
FROM: Kent McCue, Interim Engineering Manager
SUBJECT: Canter Club Estates Latecomers Agreement
I. REFERENCE(S):
Workshop Mtg.: 1/12/15
Regular Mtg.: 1/20/15
1. Canter Club Estates - Proposed Agreement
2. Canter Club Estates - Memorandum from Michael A. Pawlak, PE, City Engineer
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
01/12: Discussion
01/20: Public Hearing
MOTION: I move to approve the Latecomers Agreement water system
extension agreement with J&J Kelly Construction, Inc. and,
further, authorize the City Manager to sign the agreement.
IH. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
A) The Owner of Parcel #118 501009, J&J Kelly Construction, Inc. (Jeff & Jennifer
Kelly) constructed a single-family residential development known as Canter Club
Estates. As part of the development, J&J Kelly Construction extended City of
Pasco watermain along N. Pearl Street from Road 64 to Road 67, including
necessary valving, fittings, hydrants and other appurtenances.
B) J&J Kelly provided the City with notice at the start of construction if it's intent to
request a Latecomers Agreement and provided a construction cost estimate. At
the conclusion of construction, J&J Kelly filed an application for Latecomers
Agreement and supplied the required documentation to substantiate the request.
C) During the construction of Canter Club Estates and the installation of the N. Pearl
Street watermain extension, Mr. Leonid Parkhotyuk, owner of Parcel #18 591
043, requested that a watermain stub be extended to the north to facilitate the
development of the parcel, which is located on the north side or and immediately
adjacent to the N. Pearl Street right-of-way. That request was accommodated.
V. DISCUSSION:
A) City staff reviewed the actual construction cost documentation provided by J&J
Kelly Construction, Inc. and determined it to be reasonable. The request for
reimbursement is for 635 LF of 8 -inch watermain, valves, hydrants and
appurtenances that fronts both parcels. The requested reimbursement amount
included the costs for furnishing and installing materials, required construction
inspection and testing, and appropriate permit fees.
un
B) Development of both parcels would require the watermain extension including
connection to both existing watermains located along Roads 64 and 67, prior to
development approval. Development of parcels, within the City of Pasco, are
required to extend public infrastructure, including watermains, along the frontage
of the parcel. Fronting parcels may seek reimbursement from other adjacent or
benefitting landowners at the time of development of those parcels; i.e.
Latecomers Agreement.
C) In this circumstance, both parcels would be required to extend the watermain.
The timing of which development preceded the other would make no difference in
the responsibility of either parcel. Nor would the riming of either development
preclude the property owner/developer from seeking a Latecomers Agreement for
reimbursement of certain costs.
D) Staff determined that Parcels #118 591 043 and 118 601 009 received direct
benefit from the installation of and connection to the watermain extension.
Considering that either parcel would be required to extend the watermain in order
to create a subdivision of buildable single-family residential lots, and that neither
subdivision of property could happen without the presence of a water source; it
stands to reason that each parcel would gain the same benefit, regardless of how
the parcels might be subdivided. Staff, therefore, determined that it is reasonable
to assess fifty percent (50%) of the actual costs to each property owner.
E) Staff recommends approval of the Latecomers Agreement and individual
assessments.
WHEN RECORDED RETURN TO:
City of Pasco, Washington
525 North 3' Avenue
Pasco, WA 99301
CITY OF PASCO
LATECOMERS AGREEMENT
THIS AGREEMENT, made and entered into this day of January 2015,
by and between the City of Pasco, a Municipal Corporation of the State of Washington,
hereinafter referred to as "City", and J & J Kelly Construction, Inc., their heirs,
successors and assigns, hereinafter referred to as "Developers"; and
WHEREAS, RCW Chapter 35.91 authorizes contracts between City and
owner/developers of real estate within City, or within 10 miles of the City limits, who
construct facilities to serve their own properties and other properties whereby such
owner/developer may be reimbursed by the owners of other real property who did not
contribute to the original cost of the construction of the facilities, but who later desire to
connect their properties to the facilities previously constructed.
NOW, THEREFORE, the parties hereby mutually agree as follows:
Developers have constructed or will construct the following described
improvement to City's facilities:
635 feet of 8 inch ductile iron waterline including fire hydrants, valves and
other_ appurtenances on the new Pearl St_west of Road 64
A. The improvements have been or will be constructed in accordance
with plans and specifications approved by City prior to construction
and Developers have supplied City with reproducible as -built drawings
regarding the facilities.
B. Developers shall deed to City any and all easements pertaining to the
facilities, said easements to be recorded concurrently with the final
acceptance of this Agreement.
2. The facilities to be constructed will serve the following described real
property:
Parcel 118-591-043 and 118-601-009 (see Exhibit A)
3. If the facilities are certified as acceptable to City by the City Administrator or
his designee, Developers will convey such facilities and the easements or
lands wherein they lie to City for the monetary consideration provided herein
Latecomers Agreement - 1
and the benefits of City services and of this Agreement. City will thereafter
own and operate said facilities as part of City water/sewer system subject to
all of the laws and regulations, fees and assessments of City.
4. City and Developers agree that the actual costs for the construction of the
facilities is or will be Thirty nine thousand, six hundred eighteen dollars and
seventy-eight cents ($39,618.78) and may be recovered for Developers in
accordance with this Agreement.
5. Developers are the owners of the real property described above which will be
served by the facilities described herein.
6. Unless the City provides written notice to the Developer of its intent to request
a comprehensive plan approval, the Developer must request a comprehensive
plan approval for utility system improvements, if required.
7. Connections of the sewer water facility to the municipal system must be
further conditioned upon:
a. Inspection and approval of the utility system improvements by the City;
b. Full compliance with the Developers obligations under the Agreement and
with the City's rules and regulations;
c. Provision of sufficient security to the City to ensure completion of the
utility system improvements and other performance under the Agreement;
d. Payment by Developers to the City of all the City's costs associated with
the utility system improvements including, but not limited to, engineering,
legal, and administrative costs;
e. Verification and approval of all Agreements and costs related to the utility
system improvements; and
f. Within one hundred and twenty (120) days of the completion of the utility
system improvements, the Developers must submit the total cost of the
utility system improvements to the City.
8. For a period of twenty (20) years from the date thereof, any person, firm or
corporation now or hereafter owning real estate as described above, desiring
to connect to the described facilities shall pay the cost of the construction of
said facilities; i.e. $25.00 ;per each linear frontage foot of each parcel or
portion of the real property above described that is connected to the City
sewer services.
9. No person, firm or corporation shall be granted a permit or be authorized by
City to tap into or use the referenced facilities during the period of time
prescribed in Paragraph 6 above without first paying to City, in addition to any
Latecomers Agreement - 2
and all other costs, assessments and charges made and assessed for such tap or
use, the amount required by the provisions of this contract. All amounts so
received by City shall be remitted to Developers or assigns within sixty (60)
days of the receipt thereof.
10. Whenever any tap or connection is made into the described facilities, without
such payment having first been made, the City may remove, or cause to be
removed, such unauthorized tap or connection and all connecting tile or pipe
located in the facilities right of way and dispose of unauthorized material so
removed without any liability whatsoever.
11. Any funds collected by City in accordance with the terms of this contract shall
be remitted Developers at the following address:
Address: 1006 Christopher Lane, Pasco, WA 99301
Email: KeII)LWMily87&1nail.com
Developers shall notify City in writing of any change in address.
12. If prior to the expiration of one (1) year after the date of execution of this
Agreement or the completion of the construction of the facilities, whichever
occurs later, any work is found to be defective, Developers shall promptly
without cost to City, either correct such defective work or, if it has been
rejected by City, remove and replace it with non -defective work. If
Developers do not promptly comply with the terms of such instructions, City
may have the defective work corrected or the rejected work removed and
replaced and all direct and indirect costs of such removal and replacement,
including compensation for professional services, shall be withheld from the
latecomer's payment to Developers.
13. Developers agree that once Developers have been paid the total amount
authorized for reimbursement as set forth in Paragraph 4 above, City shall
collect no further fees under this contract and the provisions of this
Latecomers Agreement for the collection of latecomer fees shall terminate.
14. Developers hereunder are an independent contractor and are not an agent or
employee of City.
15. Developers agree to indemnify, defend and hold the City harmless from any
action, claim or proceeding brought or maintained by any latecomer
challenging the validity or enforceability of this Agreement. In turn, the City
agrees to cooperate with the developer in the course of any such claim,
proceeding or action to provide reasonable and lawful access to City records
and witnesses.
Latecomers Agreement - 3
CITY OF PASCO, WA
David Zabell
City Manager
DEVELOPERS:
Jeff Kelly Jennifer Kelly
STATE OF WASHINGTON
:as
County of Franklin )
On this day personally appeared before me DAVE ZABELL, City Manager of the City of Pasco,
to be known to be the individual described in and who executed the within and foregoing instrument, and
acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN under my hand and official seal this day of , 20 .
NOTARY PUBLIC in and for the State of
Washington residing
My Commission Expires:
STATE OF WASHINGTON )
:ss
County of Franklin )
On this day personally appeared before me Jeff and Jennifer Kelly, husband and wife, to be known
to be the individuals described in and who executed the within and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN under my hand and official seal this day of 20_.
NOTARY PUBLIC in and for the State of
Washington residing
My Commission Expires:
Latecomers Agreement - 4
Memo
To: Dave Zabell, City Manager
Ahmad Qayoumi, PE, Public Works Director
From: Michael A. Pawlak, PE, City Engineer
Date: November 14, 2014
Public Works Department
Engineering Division
Re: Canter Club Estates — Latecomers Agreement Request
Introduction. Jeff Kelly of J&J Kelly Construction, Inc., developer of Canter Club Estates, has
applied for a Latecomers Agreement with regard to the new watermain installed along N. Pearl
Street, west of Road 64. As part of the installation of public infrastructure to serve the new
residential development (Canter Club Estates), J&J Kelly Construction installed 635 LF of 8 -inch
Ductile Iron Water Pipe, including fire hydrants, valves and other appurtenances. The new
watermain will also serve the adjacent undeveloped property along the N. Pearl Street right-of-way,
upon its future development. The owner of that property, Leonid Parkhotyuk, negotiated with J&J
Kelly Construction and the City at the time of the watermain installation, to have a stub watermain
installed to the north for future connection.
Cost and /Assessment Evaluation. Mr. Kelly submitted documentation quantifying the cost of
construction of the line including pipe, fittings, hydrants, tap to the existing City watermain in Road
64, engineering plan review and construction inspection costs, and utility costs. That
documentation has been reviewed by the Pasco Engineering Division and found to be reasonable
and complete. Staff has also reviewed the proposed assessment area and is in agreement that the
costs associated with the watermain installation should be shared equally (50/50) by each of the
properties abutting N. Pearl Street along the length (635 LF) of pipe installation.
The attached Exhibit A depicts both properties and the location of the new watermain. Upon
development application either property would be required to extend City water along the N. Pearl
Street alignment and connect to existing watermains at Road 64 and Road 67. Both property
owners would also be eligible to make application for a Latecomers Agreement for partial
reimbursement of eligible costs.
Assessment of costs may be determined in a variety of methods; front footage, square footage,
number of units, or zone and termini (PMC 14.12.040). Canter Club Estates ultimately developed a
total of 27 lots. At the time of application and calculation of assessments, no proposals had been
received for the property on the north side of the N. Pearl Street extension. In accordance with
PMC 12.36.050, properties are required to extend utilities along the frontage of the parcels to be
developed. The typical approach to assessing proportionate share of latecomer reimbursements
0 Page 1
along utility installations is the front footage method. A total estimated cost for the installation of the
watermain is $39,618.78. Assessments to the two property owners would then equal:
• Canter Club Estates (applicant) $19,809.39
• Leonid & Larisa Parkhotyuk (property located to the north of Pearl St) $19,809.39
Subsequent Development Application. Subsequent to the original application for developer
reimbursement by J&J Kelly Construction, an application for development of the parcel on the north
side of the N. Pearl Street alignment was received from Leonid Parkhotyuk. The application for
Legacy Flats (Parkhotyuk) is for subdivision of the property into 4 lots fronting N. Pearl Street and 2
lots fronting on Road 64. The development application was received on September 11, 2014; two
weeks after the August 29, 2014 preliminary assessment notification was sent to both property
owners.
Had Parkhotyuk applied for development of his parcel prior to the development of Canter Club
Estates, he would have been required to extend the watermain from Road 64 to Road 67 and tie
into both existing mains. He would have also been eligible to apply to the City Council for a
Latecomers Agreement in order to receive some reimbursement from the adjoining property owner
(Canter Club Estates) for a proportionate share of the watermain costs. That calculation would
have been prepared suing the front footage method. To change the method of calculation at this
time would not be fair and equitable, would place an additional burden on one property owner for
the benefit of the other.
Staff, therefore, recommends notification of the affected property owners and assessment of
proportionate share of costs in accordance with PMC Chapter 14.12. Street and Utilities
Assessment Reimbursement Agreements — Latecomers Agreements
0 Page 2
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AGENDA REPORT
FOR: City Council 1j„- January 7, 2015
TO: Dave Zabell, City Managerr',s� Workshop Mtg.: 1/12/15
Regular Mtg.: 1/20/15
FROM: Rick Terway, Director, Administratiommunity Services
SUBJECT: Gesa Stadium Upgrades
I. REFERENCE(S):
1. Gesa Stadium Upgrades - Amendment # 2
2. Gesa Stadium Upgrades - Section 6.3
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
1/12: Discussion
1/20: MOTION: I move to approve the Amendment # 2 with the Tri -City Dust
Devils, and authorize the City Manager to execute the agreement.
III. FISCAL IMPACT:
Neutral
IV. HISTORY AND FACTS BRIEF:
A) The City of Pasco and the Tri -City Dust Devils have created a strong partnership that
has helped keep Professional Baseball in Pasco. The City of Pasco and the entire
community have benefited from this partnership through economic development,
civic pride and the improved quality of life that flows from a successful local
professional sports team. The partnership began in 2004 and continues to flourish.
V. DISCUSSION:
A) Minor League Baseball has repeatedly notified the City of Pasco and the Dust Devils
that the Home Clubhouse/Locker Room fails to meet professional baseball standards
because it is roughly 500 square feet below the minimum size allowed. Since this is a
structural improvement to the stadium, as per the City's lease agreement with the
team, the responsibility for this change falls on the City. However, in the spirit of the
partnership between the team and the City, the team has worked with an architect to
identify a possible solution and is willing to work with the City in order to make this
improvement a reality.
B) The Dust Devils propose to help the City with this improvement similar to the way
the team supported the City with the Office Building Improvement (Section 6.3 of our
lease agreement).
C) The Dust Devils will agree to pay for the clubhouse improvement project (up to
$40,000) in exchange for an annual rent credit for the next 8 years, starting in 2015.
The rent credit will be equal to 1/8th of the cost of the project, not to exceed $40,000.
The details of the advance payment and rent credit would mirror the partnership
language included in Section 6.3 of the current lease. In addition, the team will pay
the cost of furnishing the new area and the cost of furnishing does not need to be
reimbursed to the team by the City.
D) Staff recommends approval of amendment #2-
4(h)
SECOND AMENDMENT TO
BASEBALL STADIUM LEASE
THIS SECOND AMENDMENT TO BASEBALL STADIUM LEASE is made and
entered into this day of January, 2015, by and between the City of Pasco, a Washington
Municipal Corporation ("City"), and Northwest Baseball Ventures I, LLC, a Washington limited
company (the "Tenant").
RECITALS:
A. City and Tenant have executed that certain Baseball Stadium Lease Agreement
dated January 14, 2008 (the "Lease"), which was subsequently amended by the First Amendment
to Baseball Stadium Lease ("First Amendment") on the2nd day of June, 2008; and
B. City and Tenant desire to modify certain terms of the Baseball Stadium Lease as
provided below.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, it is
agreed as follows;
Rent. Section 4.1 entitled "Rent" shall be and hereby is amended and shall read
as follows:
4.1 Rent. Tenant agrees to pay annual rent in the following amounts ("Rent"):
Period Annual Rent
From the Effective Date to 12/31/08
$25,000.00
1/1/09 to 12/31/09
$26,000.00
1/1/10 to 12/31/10
$27,000.00
1/l/11 to 12/31/11
$28,000.00
1/1/12 to 12/31/12
$29,000.00
1/1/13 to 12/31/13
$30,000.00
1/1/14 to 12/31/14
$31,000.00
1/1/15 to 12/31/15
$28,358.74
1/1/16 to 12/31/16
$29,244.95
1/1/17 to 12/31/17
$30,131.16
Rent shall be paid to City at 525 North 3rd Avenue, Pasco, Washington 99301, Attention:
City Treasurer ("City's Address"). Tenant shall pay Rent in a lump sum annually on June 15 of
each calendar year during the Tenn. Tenant shall pay a late service charge on all past due rent at
the rate of five percent (5%) per month, but in no event higher than the legit limit. In addition to
the Rent specified in Section 4. 1, from and after January 1, 2015, the Tenant shall pay leasehold
excise tax in accordance with Chapter 82.29A RCW (the "Leasehold Tax") for the remainder of
the terms in the following amounts:
Second Amendment to
Baseball Stadium Lease - 1
Period Tax
1/1/15 to 12/31/15 $3,641.26
1/1/16 to 12/31/16 $3,755.05
1/1/17 to 12/31/17 $3,868.84
If City raises the admission tax on tickets to view events in the Baseball Stadium above
two and one-half percent (2.5%), the Rent set forth above shall be reduced on a dollar for dollar
basis for each year the dollar amount of admission taxes collected by Tenant has already paid
Rent, City shall refund to Tenant a portion of the Rent overpaid as a result of the application of
this provision.
2. Improvements. That Section 6.3 entitled "Improvements" shall be and hereby is
amended by the addition of the following:
6.3 Improvements.
f. In addition to the Improvements as provided in Section 6.3.a above, the
City shall allow Tenant to make and install Improvements to the clubhouse facility having an
approximate value of $40,000. Tenant shall use good faith and diligent efforts to complete the
construction of the Improvements and for the Improvements to be ready for occupancy no later
than June 1, 2015. The Improvements shall be constructed and installed according to all
governing laws and regulations, including but not limited to, the Americans with Disabilities
Act. Prior to constructing or installing the Improvements, Tenant shall submit to City plans and
specifications for the Improvements for City approval, such approval not to be unreasonably
withheld. The location of the Improvements shall be subject to the prior approval of City.
During the term of the Lease, Tenant shall maintain ownership of the Improvements; however, at
the expiration of the Term, City may (i) require Tenant to remove the Improvements or (ii) allow
Tenant to abandon the Improvements, at which time, the Improvements shall become part of the
Property and be owned by City.
g. In addition to the Improvements as provided in Section 6.3.b above,
Tenant shall provide City with an accounting of the actual third -party costs and expenses
incurred by Tenant to install the Improvements to the clubhouse facility, including paint,
carpet/flooring and any built-in cabinets and counters, such costs not to include fees to Tenant or
affiliates of Tenant, furniture or fixture costs, or other non -third party expenses. If requested by
the City, the accounting shall be accompanied by receipts, contracts, or any other reasonable
evidence of the costs incurred by Tenant for the Improvements. Upon City review and approval
of such accounting, the costs incurred by Tenant to install the Improvements shall constitute the
Approved Costs.
h. In addition to the Improvements as provided in Section 6.3.c above, City
shall provide Tenant with an annual credit for the against the Rent in an amount equal to one-
eighth (1/8th) of the Approved Costs for the clubhouse facility, such credit shall not exceed
$5,000 annually, or $40,000 in the aggregate (the "Rent Credit").
Second Amendment to
Baseball Stadium Lease - 2
i. If City and Tenant mutually agree upon the Rent during the Extension
Term and extend this Lease through the Extension Term for the clubhouse facility, then Tenant
shall be eligible for the Rent Credit through the Extension Term in accordance with the rate
provided in subsection h above. If Tenant terminates this Lease after the expiration of the Initial
Term without exercising its option to extend the lease, then Tenant shall have forfeited any
remaining Rent Credit.
j. If Tenant exercises its option to extend this Lease for the clubhouse
facility, but City and Tenant have not mutually agreed on the Rent for the Extension Term at
least twelve (12) months prior to the last day of the Initial Term, then (i) upon expiration of this
Lease following the end of the Initial Term and provided that Tenant has otherwise complied
with the terms of this Lease, Tenant shall receive one-third (1/3) of the Rent Credit as a
termination fee within sixty (60) days following the last day of the Initial Term; and (ii) this
Lease shall terminate upon the expiration of the Initial Term. Notwithstanding the preceding
sentence, if City proposes an amount for annual Rent for the Extension Term which does not
exceed $34,000, and Tenant does not accept this proposal, then Tenant shall have forfeited any
right to a termination fee upon the expiration of this Lease.
3. Remaining Terms and Conditions. All remaining terms and conditions of the
Baseball Stadium Lease as amended by the First Amendment to Baseball Stadium Lease not
inconsistent with the Amendments provided by this Agreement, shall remain in full force and
effect. If there are any conflicts between the terms and provisions of the Lease, the First
Amendment, and this Second Amendment, the terms of the Second Amendment shall control.
4. Counterparts. This Second Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. This Lease or any counterpart may be executed and delivered by
facsimile transmission with an executed hard copy to follow.
5. Definitions. All terms and definitions used in this Second Amendment hot herein
defined are to be give the definition of the term as provided in the Lease, unless specifically
stated otherwise.
6. Authorization. Each party represents and warrants to the other that it fully
empowered and authorized to execute and deliver this Second Amendment, and the individual
signing this Second Amendment on behalf of such party represents and warrants to the other
party that he or she is fully empowered and authorized to do so.
IN WITNESS WHEREOF, City and Tenant have executed this Second Amendment the
day and year first above written.
Second Amendment to
Baseball Stadium Lease - 3
CITY:
City of Pasco, a Washington
Municipal Corporation
M
Dave Zabell, City Manager
TENANT:
Northwest Baseball Ventures I, LLC, a
Washington Limited Liability Company
LO
Title:
Second Amendment to
Baseball Stadium Lease - 4
e. If the Additional Rent is included in contract rent for purposes of
calculating the Leasehold Tax, City shall pay such Leasehold Tax, including all applicable
penalties and interest thereon, from the Additional Rent remitted by Tenant and the Additional
Rent shall be deemed to have been reduced by the amount of such Leasehold Tax.
f. Tenant shall include in all written agreements with third parties that
sponsor Other Events, the right of City to audit such third parties' records regarding payment of
sublease/license fees.
V. UTILITIES
5.1 Utilities
a. Utility Charges. Tenant shall pay or cause to be paid when due, and shall
indemnify, protect and hold harmless City and the Premises from all charges for public or private
utility services to the Premises during the Term, including without limiting the generality of the
foregoing, all charges for heat, light, electricity, potable water, gas, telephone service, garbage
collection and sewer and drainage service. Notwithstanding the foregoing, the City shall provide
un -metered well irrigation water to Tenant at no cost to Tenant.
b. Interruptions of Utility Services. City shall not be liable to Tenant in
damages or otherwise (i) if any utility shall become unavailable from any entity (including City)
supplying or distributing such utility, or (ii) for any interruption in any utility service (including,
without limitation, any heating, air-conditioning or sprinkler) caused by the making of any
necessary repairs or improvements or by any cause, and the same shall not constitute a
termination of this Lease or an eviction of Tenant. If any utility service, used at the Premises and
for which City is responsible, shall be interrupted, City shall restore such utility service as soon
as practical.
VI. CONDITION OF PREMISES; IMPROVEMENTS
6.1 Current Condition. Tenant agrees to accept the Premises and Baseball Stadium in
its current "as is, where is" condition. Tenant acknowledges the opportunity prior to its
execution of this Lease to conduct a thorough inspection of the Premises.
6.2 Air Conditioning.
The air conditioning, previously installed by Tenant in the "home team" clubhouse/locker
room, is part of the Premises, and during the Term shall be maintained by Tenant at Tenant's
cost. Upon expiration or earlier termination of this Lease, the air conditioning equipment shall
become the property of City, without additional cost or expense to City.
6.3 Improvements. Tenant has requested City's permission to install certain fixtures
on the Premises during the Lease Term. City consents to Tenant's request pursuant to the
requirements and conditions contained in this Section 6.3.
El
a. City shall allow Tenant to install a modular office building on the Property
containing approximately square feet (the "Improvements"). Tenant shall use good
faith and diligent efforts to complete the construction of the Improvements and for the
Improvements to be ready for occupancy no later than June 15, 2008. The Improvements shall
be constructed and installed according to all governing laws and regulations, including but not
limited to, the Americans with Disabilities Act. Prior to constructing or installing the
Improvements, Tenant shall submit to City plans and specifications for the Improvements for
City approval, such approval not to be unreasonably withheld. The location of the Improvements
shall be subject to the prior approval of City. During the Term of the Lease, Tenant shall
maintain ownership of the Improvements; however, at the expiration of the Term, City may (i)
require Tenant to remove the Improvements or (ii) allow Tenant to abandon the Improvements,
at which time, the Improvements shall become part of the Property and be owned by City.
b. Following completion of the Improvements, Tenant shall provide City
with an accounting of the actual third -party costs and expenses incurred by Tenant to install the
Improvements, including paint, carpet/flooring and any built-in cabinets and counters, such costs
not to include fees to Tenant or affiliates of Tenant, furniture or fixture costs, or other non -third
party expenses. If requested by the City, the accounting shall be accompanied by receipts,
contracts, or any other reasonable evidence of the costs incurred by Tenant for the
Improvements. Upon City review and approval of such accounting, the costs incurred by Tenant
to install the Improvements shall constitute the Approved Costs.
C. City shall provide Tenant with an annual credit against the Rent in an
amount equal to one -fifteenth (1/15s') of the Approved Costs, such credit not to exceed $11,666
annually or $175,000 in the aggregate (the "Rent Credit').
d. If City and Tenant mutually agree upon the Rent during the Extension
Term and extend this Lease through the Extension Term, then Tenant shall be eligible for the
Rent Credit through the Extension Term. If Tenant terminates this Lease after the expiration of
the Initial Term without exercising its option to extend the Lease, then Tenant shall have
forfeited any remaining Rent Credit.
e. If Tenant exercises its option to extend this Lease but City and Tenant
have not mutually agreed on the Rent for the Extension Term at least twelve (12) months prior to
the last day of the Initial Term, then (i) upon expiration of this Lease following the end of the
Initial Term and provided that Tenant has otherwise complied with the terms of this Lease,
Tenant shall receive one-third (1/3) of the Rent Credit as a termination fee within sixty (60) days
following the last day of the Initial Term; and (ii) this Lease shall terminate upon the expiration
of the Initial Term. Notwithstanding the preceding sentence, if City proposes an amount for
annual Rent for the Extension Term which does not exceed $34,000, and Tenant does not accept
this proposal, then Tenant shall have forfeited any right to a termination fee upon the expiration
of this Lease.
VII. REPAIRS AND MAINTENANCE
7.1 City Obli ation. City shall, at its own cost and expense, maintain and repair all
structural portions of the Premises in a good and safe condition during the Term, reasonable wear
and tear excepted, promptly after City is made aware of the need for such structural maintenance
and/or repair. Structural portions of the Premises shall include, without limitation, all sidewalks
IFA