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HomeMy WebLinkAbout2015.06.15 Council Meeting PacketAGENDA PASCO CITY COUNCIL Regular Meeting 7:00 p.m. June 15, 2015 Page 1. CALL TO ORDER: 2. ROLL CALL: (a) Pledge of Allegiance 3. CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Council members or the public, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. 6 - 9 (a) Approval of Minutes To approve the Minutes of the Pasco City Council Meeting dated June 1, 2015. 10-12 (b) Bills and Communications To approve claims in the total amount of $3,221,100.95 ($1,316,860.29 in Check Nos. 204284-204552; $371,481.19 in Electronic Transfer Nos. 805782, 806027, 806028, 806037, 806038-806041; $51,157.66 in Check Nos. 48014-48068; $623,763.84 in Electronic Transfer Nos. 30082151- 30082638; $857,837.97 in Electronic Transfer Nos. 143-158). To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General Accounts, Miscellaneous Accounts, and Municipal Court (non- criminal, criminal, and parking) accounts receivable in the total amount of $298,549.98 and, of that amount, authorize $188,509.59 be turned over for collection. 13-18 (c) I Accept 2015 Water Meter Relocations To approve Resolution No. 3642, accepting the work performed by Puget Sound Utility Services, hic., under contract for the 2015 Water Meter Relocations project. 19-23 (d) I Accept Lewis Street Demolition Project To approve Resolution No. 3643, accepting the work performed by Ray Page 1 of 189 inna 2015 Poland & Sons, Inc., under contract for the Lewis Street Demolition project. (RC) MOTION: I move to approve the Consent Agenda as read. 4. PROCLAMATIONS AND ACKNOWLEDGEMENTS: 5. VISITORS - OTHER THAN AGENDA ITEMS: This item is provided to allow citizens the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. 6. REPORTS FROM COMMITTEES AND/OR OFFICERS (a) Verbal Reports from Councilmembers 24 (b) General Fund Operating Statement through May 2015 7. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO: 25-45 (a) Road 80 Annexation (MF# ANX 2015-001) CONDUCT PUBLIC HEARING MOTION: I move to adopt Ordinance No. 4222, an Ordinance annexing certain real property to the City of Pasco, and, further, authorize publication by summary only. 46-69 (b) Sharma Annexation (MF# ANX 2014-003) CONDUCT PUBLIC HEARING MOTI6N A: I move to adopt Ordinance No. 4223, an Ordinance annexing certain real property to the City of Pasco and, further, authorize publication by summary only. MOTION B: I move to adopt Ordinance No. 4224, an Ordinance establishing R-1 and RS -1 zoning for the Sharma Annexation Area as recommend by the Planning Commission and, further, authorize publication Page 2 of 189 2015 by summary only. 70-76 (c) Six-year Transportation Improvement Plan 2016-2021 CONDUCT PUBLIC HEARING MOTION: I move to approve Resolution No. 3644, adopting the revised and extended Comprehensive Street, Storm Drain and Bridge Programs for the City of Pasco. 77-82 (d) Street Vacation: Portion of Duluth St. and California Ave. (MF# VAC 2015-009) CONDUCT PUBLIC HEARING MOTION: I move to adopt Ordinance No. 4225, an Ordinance vacating a portion of Duluth Street and a portion of California Avenue and, further, authorize publication by summary only. 83-88 (e) Street Vacation: Portion of Road 60 (MF# VAC 2015-006) CONDUCT PUBLIC HEARING MOTION: I move to adopt Ordinance No. 4226, an Ordinance vacating a portion of Road 60 and, further, authorize publication by summary only. 89-94 (fj Street Vacation: A Portion of Washington Street (MF# VAC 2015-010) CONDUCT PUBLIC HEARING MOTION A: I move to deny the Washington Street vacation. (Recommended) MOTION B: I move to adopt Ordinance No. 4227, an Ordinance vacating a portion of Washington Street and, further, authorize publication by summary only. 8. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS: 95- 162 (a) LTGO Bonds for Police Community Services Building MOTION: I move to adopt Ordinance No. 4228, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $9,000,000 aggregate principal amount of limited tax general obligation bonds to provide funds to design, construct and equip a new police facility and other capital purposes, as deemed necessary and advisable by the City, and to pay the costs of issuance and sale of the bonds; fixing or setting Page 3 of 189 Regular Meeting June 15, 2015 parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters and, further, authorize publication by summary only. 9. UNFINISHED BUSINESS: 10. NEW BUSINESS: 163- 177 (a) I Pasco Senior Center Purchase & Sale Agreement with Pasco School District MOTION: I move to approve the Purchase and Sale Agreement between the City of Pasco and Pasco School District #1 for the sale of the Pasco Senior Center and, further, authorize the City Manager to execute the agreement. 178-184 (b) 20th Avenue Safety Improvements - Lewis Street to Sun Willows Boulevard MOTION: I move to approve 20th Avenue Safety Improvements Professional Design - Lewis Street to Sun Willows Boulevard Professional Services Agreement with DKS Associates and, further, authorize the City Manager to execute the agreement. 185-189 (c) I Process Water Reuse Facility (PWRF) Dam Safety Compliance — Professional Engineering, Geotechnical, and Surveying Services MOTION: I move to approve the Process Water Reuse Facility Dam Safety Compliance Project Professional Services Agreement with GN Northern, Inc. and, further, authorize the City Manager to execute the agreement. 11. MISCELLANEOUS DISCUSSION: 12. EXECUTIVE SESSION: 13. ADJOURNMENT. (RC) Roll Call Vote Required * Item not previously discussed Q Quasi -Judicial Matter MF# "Master File #...... Page 4 of 189 Regular Meeting lune 15, 2015 REMINDERS: • 6:OOpm, Monday, June 15, Conference Room #1 - LEOFF Disability Board Meering. (MAYOR MATT WATKINS and COUNCILMEMBER REBECCA FRANCIK) • S:OOpm, Tuesday, June 16, TRAC Facility - TRAC Advisory Board Meeting. (MAYOR MATT WATKINS and COUNCILMEMBER AL YENNEY) • 6:OOam, Wednesday, June 17, Vancouver, WA - Economic Development Tour. (COUNCILMEMBERS REBECCA FRANCIK and BOB HOFFMANN) • S:OOpm, Wednesday, June 17, 3 -Rivers Convention Center - Leadership Tri -Cities Class #20 Celebration. (MAYOR MATT WATKINS) • 11:30am, Friday, June 19 - Benton Franklin Council of Governments Meeting. (COUNCILMEMBER AL YENNEY, Rep.; REBECCA FRANCIK, Alt.) This meeting is broadcast live on PSC -TV Channel 191 on Charter Cable and streamed at www.aasco-wa.eov/osctvlive. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Page 5 of 189 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager Rick Terway, Director Administrative & Community Services FROM: Sandy Kenworthy, Administrative Assistant II Administrative & Community Services SUBJECT: Approval of Minutes I. REFERENCE(S): Minutes of the June 1, 2015 meeting. June 8, 2015 Regular Meeting: 6/15/15 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the Minutes of the Pasco City Council Meeting dated June 1, 2015, III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 189 MINUTES REGULAR MEETING PASCO CITY COUNCIL JUNE 1, 2015 CALL TO ORDER: The meeting was called to order at 7:00 p.m. by Matt Watkins, Mayor. ROLL CALL: Councilmembers present: Rebecca Francik, Mike Garrison, Robert Hoffmann, Tom Larsen, Saul Martinez, Matt Watkins and Al Yenney. Staff present: Dave Zabell, City Manager; Leland Kerr, City Attorney; Rick White, Community & Economic Development Director; Ahmad Qayoumi, Public Works Director; Bob Metzger, Police Chief and Bob Gear, Fire Chief. The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA: Approval of Minutes To approve the Minutes of the Pasco City Council Meeting dated May 18, 2015. Bills and Communications To approve claims in the total amount of $1,962,234.59 ($598,803.34 in Check Nos. 204124-204283; $715,225.38 in Electronic Transfer Nos. 805471-805514, 805522 -805523,805525-805651,805653-805711,805713-805774;$39,112.37 in Check Nos. 47966-48013; $607,093.50 in Electronic Transfer Nos. 30081671-30082150; $2,000.00 in Electronic Transfer No. 142) Summer School Services Interagency Agreement To approve the Interagency Agreement with the Pasco School District providing School Resource Officers for the 2015 Summer School Session and, further, authorize the Mayor to execute the agreement. PUD EASEMENTS: Utility Easements (MF# ESMT 2015-003) To authorize the City Manager to execute the easements granting the Franklin County PUD an easement across a portion of Highland Park and a portion of Blocks 1 and 6 of the Whitehouse Addition. Road 80 Annexation (MF# ANX 2015-001) To set 7:00 pm, June 15, 2015 as the time and date to hold a public hearing to consider the Road 80 Annexation. Sharma Annexation (MF# ANX 2014-003) To set 7:00 pm, June 15, 2015 as the time and date to hold a public hearing to consider the Sharma Annexation. MOTION: Ms. Francik moved to approve the Consent Agenda as read. Mr. Garrison seconded. Motion carried by unanimous Roll Call vote. Page 1 of 3 Page 7 of 189 MINUTES REGULAR MEETING PASCO CITY COUNCIL PROCLAMATIONS AND ACKNOWLEDGEMENTS: Yard and Business of the Month Awards JUNE 1, 2015 Mayor Watkins presented Certificates of Appreciation for May 2015 "Yard of the Month" and "Business Appearance of the Month" to: • Elias & Patricia Tobon, 1316 W. Yakima Street • Marco Antonio & Rosa Elena Martinez, 3220 W. Wernett Road • Douglas & Evelyn White, 4711 Santa Rosa Court • Arnold Welden, 7608 Bonilla Drive • TerraGraphics Environmental Engineering Inc., 428 W. Shoshone Street VISITORS - OTHER THAN AGENDA ITEMS: Sierra Trinidad, 134 Diamond Dr., inquired about the repair of structure damage caused by the Pasco Police. Jeremy Petersen, 1414 W. 6th Ave., Kennewick, asked about the process of Tri - Cities Community Solutions engaging with Council now that the SlU Investigation Report is complete. Gabriel Portugal, 804 Road 52, inquired about the next steps in implementing District Based Elections. REPORTS FROM COMMITTEES AND/OR OFFICERS: Mr. Garrison attended the Visit TRI -CITIES Board meeting Mr. Yenney confirmed the redacted SIU Investigation Report will be publicly available after review by the Franklin County Prosecutor's Office. Ms. Francik invited all to join in with the Mid -Columbia Mastersingers Summer Sing. Mr. Hoffinann attended the Ribbon Cutting Ceremony for the new Bush Car Wash on Court Street. Mr. Larsen reported on the Emergency Medical Services Board meeting. Mayor Watkins reported on the Pasco Police Community Services Building Groundbreaking Ceremony. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO: Road 80 Annexation Zoning (MF# ZD 2015-001) Council and staff discussed the proposed ordinance. Mayor Watkins declared the Public Hearing open to consider the proposed ordinance. Steven Schlegel, 9304 W. Richardson Rd., requested the RS -20 zoning remain in effect for 10 years. Ross Carpenter, 3420 Rd. 88, agreed the zoning should remain in effect for 10 years and commented that more information should have been provided to residents. Page 2 of 3 Page 8 of 189 MINUTES REGULAR MEETING PASCO CITY COUNCIL JUNE 1, 2015 Bill Venema, 8517 W. Court St., would like to see the annexation zoning consistent will all other zoning in the city. Following three calls for comments, Mayor Watkins declared the Public Hearing Closed. MOTION: Ms. Francik moved to adopt Ordinance No. 4221, adopting pre- annexation zoning for the Road 80 Annexation Area and establishing RS -20 zoning for said area. Mr. Garrison seconded. Motion carried by the following Roll Call vote: Yes - Watkins, Yenney, Francik, Garrison, Hoffinann, Martinez. No - Larsen. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS: Preliminary Plat: Majestia Place (MFW PP 2015-001) Council and staff discussed the details of the proposed resolution. MOTION: Ms. Francik moved to approve Resolution No. 3641, approving Preliminary Plat for Majestia Place. Mr. Yenney seconded. Motion carried. EXECUTIVE SESSION: Council adjourned to Executive Session at 7:42 for approximately 10 minutes to establish the sales price or lease amount of real estate with the City Manager and the City Attorney. Mayor Watkins called the meeting back to order at 7:54 p.m. ADJOURNMENT: There being no further business, the meeting was adjourned at 7:54 p.m. APPROVED: Matt Watkins, Mayor ATTEST: Debra Clark, City Clerk PASSED and APPROVED this 15th day of June, 2015 Page 3 of 3 Page 9 of 189 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager Rick Terway, Director Administrative & Community Services FROM: Eva Lindgren, Deputy Director Administrative & Community Services SUBJECT: Bills and Communications I. REFERENCE(S): Accounts Payable Bad Debt Write-off/Collection June 9, 2015 Regular Meeting: 6/15/15 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $3,221,100.95 ($1,316,860.29 in Check Nos. 204284-204552; $371,481.19 in Electronic Transfer Nos, 805782, 806027, 806028, 806037, 806038-806041; $51,157.66 in Check Nos. 48014-48068; $623,763.84 in Electronic Transfer Nos. 30082151-30082638; $857,837.97 in Electronic Transfer Nos. 143-158). To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General Accounts, Miscellaneous Accounts, and Municipal Court (non -criminal, criminal, and parking) accounts receivable in the total amount of $298,549.98 and, of that amount, authorize $188,509.59 be turned over for collection. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 10 of 189 CITY OF PASCO Council Meeting of: June 15, 2015 Accounts Payable Approved The City Council City of Pasco, Franklin County, Washington We, the undersigned. do hereby certify under penalty of Perjury that the materials have been furnished, the services rendered or the labor performed as described herein and that the claim is a just, due and unpaid obfgation eins t the cand that we are authorized to authenticate and certify to said claim. 7Z441-1 7/64�' raw Davea 1, City Manager Rick Terway, A&C rector Zf We, the undersigned City Counclimembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 15 day of June, 2015 that the merchandise or services hereinafter specified have been received and are approved for payment: Claims Bank Payroll Bank Gen'I Bank Electronic Bank Combined Check Numbers 204284-204552 48014-48068 Total Check Amount $1,316,860.29 $51,157.66 Total Checks $ 1,368,017.95 Electronic Transfer Numbers 805782;806027 30082151-30082638 143-158 C. D. BLOCK GRAM 4,357.74 HOME CONSORTIUM GRANT 806028;806037 99UT LIB/FIRE 13.875.00 KING COMMUNITY CENTER 829.45 806038-806041 8,508.54 CEMETERY 2,953.31 Total EFT Amount $371,481.19 $623,763.84 $857,837.97 Total EFTS $ 1,853,083.00 3,071.69 MULTI MODAL FACILITY 91844 Grand Total—i 3,221,100.95 SPECIAL ASSESSMNT LODGING 21,674.04 LITTER CONTROL 0.00 REVOLVING ABATEMENT 1,203.00 Councilmember Councilmember 0.00 SUMMARY OF CLAIMS BY FUND: GENERALFUND 526,242.55 STREET 9,986.25 SCHOOL IMPACT FEE 172,007.00 STREET OVERLAY 21,196.64 C. D. BLOCK GRAM 4,357.74 HOME CONSORTIUM GRANT 27,000.00 99UT LIB/FIRE 13.875.00 KING COMMUNITY CENTER 829.45 AMBULANCE SERVICE 8,508.54 CEMETERY 2,953.31 ATHLETIC PROGRAMS 2,198.00 GOLF COURSE 70,632.54 SENIOR CENTER OPERATING 3,071.69 MULTI MODAL FACILITY 91844 RIVERSHORE TRAIL & MARINA MAIN 676.58 SPECIAL ASSESSMNT LODGING 21,674.04 LITTER CONTROL 0.00 REVOLVING ABATEMENT 1,203.00 TRAC DEVELOPMENT & OPERATING ECONOMIC DEVELOPMENT 0.00 STADIUb9CONVENTION CENTER 7,766.00 GENERAL CAP PROJ CONSTRUCTION 9,991.29 WATER/SEWER 63,521.33 1,002,259.21 EQUIPMENT RENTAL - OPERATING GOVERNMENTAL 39,318.76 EQUIPMENT RENTAL - OPERATING BUSINESS 10,518.25 EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL 125,862.31 EQUIPMENT RENTAL - REPLACEMENT BUSINESS MEDICAL/DENTAL INSURANCE 61,012.35 FLEX 148,837.90 PAYROLL CLEARING 5,201.42 850,081.36 GRAND TOTAL ALL FUNDS: $ 3,221,100.95 Page 11 of 189 BAD DEBT WRITE-OFF/COLLECTION May 1-31.2015 1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-off are under $10 with no current forwarding address, or are accounts in "occupant" status. Accounts submitted for collection exceed $10.00. 2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. Direct write off including DSHS and Medicare customers; the law requires that the City accept assignment in these cases. 3. COURT ACCOUNTS RECEIVABLE - These are all delinquent non -criminal and criminal fines, and parking violations over 30 days past due. 4. CODE ENFORCEMENT — LIENS - These are Code Enforcement violation penalties which are either un -collectable or have been assigned for collections because the property owner has not complied or paid the fine. There are still liens in place on these amounts which will continue to be in effect until the property is brought into compliance and the debt associated with these liens are paid. 5. CEMETERY - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. 6. GENERAL - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. 7. MISCELLANEOUS - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. Page 12 of 189 Direct Referred to Total Write-off Collection Write-off Utility Billing $ 65.37 2,885.76 2,951.13 Ambulance $ 103,583.66 14,524.28 118,107.94 Court A/R $ .00 167,845.00 167,845.00 Code Enforcement $ .00 1,418.00 1,418.00 Cemetery $ .00 1,504.22 1,504.22 General $ 28.00 332.33 360.33 Miscellaneous $ 6,363.36 .00 6,363.36 TOTAL: $ 110,040.39 188,509.59 298,549.98 Page 12 of 189 AGENDA REPORT FOR: City Council June 8, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 Ahmad Qayoumi, Public Works Director FROM: Kent McCue, Construction Manager Public Works SUBJECT: Accept 2015 Water Meter Relocations, Project #M7 -WT -2R-15-02 I. REFERENCE(S): Vicinity Map Photos of Project Resolution H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. accepting the work performed by Puget Sound Utility Services, Inc., under contract for the 2015 Water Meter Relocations project. III. FISCAL IMPACT: The project was listed and budgeted in 2015 as a water improvement project. IV. HISTORY AND FACTS BRIEF: On March 2, 2015, Council awarded the 2015 Water Meter Relocations project to Puget Sound Utility Services, Inc. for $100,485.41. V. DISCUSSION: The project was a continuation of LID 149 improvements in which new water mains were installed in the streets. This was done to provide reliable water service and reduce the cost of repairs and issues associated with old pipes in the area. In addition, by abandoning the old water mains, the City was able to vacate the alley right-of-way. The final project construction contract totaled $95,575.05, a savings of $4,910.36 (approximately 5%). Page 13 of 189 Staff conducted extensive outreach and coordination with the residents. There were no major issues and the project was completed without any delays or disruptions of water supply to existing residents. The work is now complete and staff recommends City Council's acceptance of this work. Page 14 of 189 H 15 '.. ' ' . I 1 � '�'• _ • yam.. 40 i 1, s -•jor� �f�'J' 7 el 46 e•r ��:, r'� ,j i \ X4,1' :i 4. o , .✓'- - 1 1J`y V . � M SSSSS977777 k tll � _ w �s'.Y �`'T'+�+` y>, � I }� ,;�� �� ..� a (mai ��j• c r � t 116. 9 �e S• t a , 00 , 10- �4q 4 kAms" 4 RESOLUTION NO. A RESOLUTION ACCEPTING WORK PERFORMED BY PUGET SOUND UTILITY SERVICES, INC., UNDER CONTRACT FOR THE 2015 WATER METER RELOCATIONS PROJECT. WHEREAS, the work performed by Puget Sound Utility Services, Inc., under contract for the 2015 Water Meter Relocations project has been examined by Engineering and has been found to be in apparent compliance with the applicable project specifications and drawings, and WHEREAS, it is Engineering's recommendation that the City of Pasco formally accept the contractor's work and the project as complete; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, that the City Council concurs with Engineering's recommendation and thereby accepts the work performed by Puget Sound Utility Services, Inc., under contract for the 2015 Water Meter Relocations project, as being completed in apparent conformance with the project specifications and drawings, and Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance, and Be It Further Resolved, that the final payment of retainage being withheld pursuant to applicable laws, regulations and administrative determination shall be released upon satisfaction of same and verification thereof by the Public Works Director and Finance Manager. PASSED by the City Council of the City of Pasco this 15th day of June, 2015. Matt Watkins Mayor Debra L. Clark City Clerk APPROVED AS TO FORM: Leland B. Kerr City Attorney Page 18 of 189 AGENDA REPORT FOR: City Council June 8, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 Ahmad Qayoumi, Public Works Director FROM: Kent McCue, Construction Manager Public Works SUBJECT: Accept Lewis Street Demolition, Project #C5 -ST -3A-13-01 I. REFERENCE(S): Vicinity Map Vicinity Map with Change Order Keynotes Resolution H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. accepting the work performed by Ray Poland & Sons, Inc., under contract for the Lewis Street Demolition project. III. FISCAL IMPACT: Surface Transportation Program (STP) - $500,000 Arterial Street Fund - $167,138 IV. HISTORY AND FACTS BRIEF: On April 7, 2014, Council awarded the Lewis Street Demolition project to Ray Poland & Sons, Inc. for $445,017.82. V. DISCUSSION: The project involved the demolition of several structures, including hazardous materials abatement, backfill and other associated work on land purchased for right-of- way purposes for the future Lewis Street Overpass. During demolition, crews encountered asbestos wrapped piping in several of the buildings and all buildings had lead vent pipe sleeves. Asbestos was also discovered in Page 19 of 189 under -coatings of sinks and tanks and inside layers of roofing. Due to the hazardous nature of them, the removal of materials such as asbestos and lead requires additional precautions and procedures specified by the Department of Labor & Industries. A discovery in one structure required additional certification of the contractor and halted demolition of that structure for several weeks. When century old buildings constructed under different regulations and remodeled many rimes over are opened up, it is difficult to predict what may be encountered. In this case, beyond the lead and asbestos, an additional underground storage tank was discovered and had to be removed, along with hydraulic lifts and contaminated soil. The presence of these materials, while anticipated to a degree, exceeded the contingency amount set aside to address such issues. As a result, the final project construction contract totaled $667,138.40, an overage of $222,120.58 (approximately 33%). The work is now complete, the site is clean and meets project specifications. Staff recommends City Council's acceptance of this work. Page 20 of 189 G, VICINITY MAP °" n°" MW SCALE: NONE WS PASCO 303 I __-- yJtLs� I1 r I� I I I a 1 ? 1 2 3 5 N Z o 0 '��mi ❑2 rn ® L&I ASBESTOS WORKER CARD FOR OPERATOR ❑3 REMOVE AND DISPOSE OF LEAD VENT PIPE SLEEVES (ALL BUILDINGS) ❑S O I r. I i ❑7 I 1 I I 1 0 D i b j o 231 217 I I 2 3 5 I I I I ---°ts — >1; -- 20s --- ------ -- T" W. CLARK ST 1 I W. I I T —_ - _—___-__-____--__ y I� I;I 9 ffi�. u I- J���ryµ _ --F 'G M a 1 CHANGE ORDER KEYNOTES 1� ADDITIONAL ASBESTOS REMOVAL AND DISPOSAL ❑7 HYDROSEED FOR DUST CONTROL (ENTIRE SITE) '��mi ❑2 —_ - _—___-__-____--__ y I� I;I 9 ffi�. u I- J���ryµ _ --F 'G M 1 1 CHANGE ORDER KEYNOTES 1� ADDITIONAL ASBESTOS REMOVAL AND DISPOSAL ❑7 HYDROSEED FOR DUST CONTROL (ENTIRE SITE) ❑2 REMOVE AND DISPOSE OF MERCURY SWITCHES (ALL BUILDINGS) ® L&I ASBESTOS WORKER CARD FOR OPERATOR ❑3 REMOVE AND DISPOSE OF LEAD VENT PIPE SLEEVES (ALL BUILDINGS) ❑S REMOVE AND DISPOSE OF HYDRAULIC LIFT AND TESTING OF ® REMOVE AND DISPOSE OF ADDITIONAL PCB BALLASTS ® SURROUNDING SOIL REMOVE AND DISPOSE OF UNDERGROUND STORAGE TANK W/ 05 CUT AND CAP EXISTING SEWER STUB PCB'S, AND SURROUNDING CONTAMINATED SOIL © SAWCUT, REMOVE, AND DISPOSE OF ADDITIONAL CONCRETE ©1 REMOVE AND DISPOSE OF CONTAMINATED SOIL IN DRYWELL © REMOVAL AND DELIVERY OF MURAL DISCOVERED IN BASEMENT DT N Call before ym O w RAL SIZE -SME IN RET: 1' - 10• W SIZE -MU N FEET: 1' - S0• CO GJ 1 1 RESOLUTION NO. A RESOLUTION ACCEPTING WORK PERFORMED BY RAY POLAND & SONS, INC., UNDER CONTRACT FOR THE LEWIS STREET DEMOLITION PROJECT. WHEREAS, the work performed by Ray Poland & Sons, Inc., under contract for the Lewis Street Demolition project has been examined by Engineering and has been found to be in apparent compliance with the applicable project specifications and drawings, and WHEREAS, it is Engineering's recommendation that the City of Pasco formally accept the contractor's work and the project as complete; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, that the City Council concurs with Engineering's recommendation and thereby accepts the work performed by Ray Poland & Sons, Inc., under contract for the Lewis Street Demolition project, as being completed in apparent conformance with the project specifications and drawings, and Be it Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance, and Be it Further Resolved, that the final payment of retainage being withheld pursuant to applicable laws, regulations and administrative determination shall be released upon satisfaction of same and verification thereof by the Public Works Director and Finance Manager. PASSED by the City Council of the City of Pasco this 15`h day of June, 2015. Matt Watkins Mayor ATTEST: Debra L. Clark City Clerk APPROVED AS TO FORM: Leland B. Kerr City Attorney Page 23 of 189 GENERAL FUND OPERATING STATEMENT PRELIMINARY, UNADJUSTED THROUGH MAY 2015 TOTAL EXPENDITURES 39,045,481 15,008,866 REQUIRED ADJUSTMENTS RELATING TO REVENUE RECOGNITION*: ENDING FUND BALANCE 5,442,206 7,662,275 TOTAL EXPEND & END FUND SAL 44,487,687 22,671,141 UNRESTRICTED CASH AND INVESTMENTS: 5,503,314 38.4% 46,012,564 15,467,020 33.6% EXPECTED PERCENTAGE OF REVENUES AND EXPENDITURE, FOR 5 MONTHS: *2014 revenue accruals to be reversed in 2015 These statements are intended for Management use only. (3,514,678) 5,695,202 7,359,367 51,707,766 22,826,387 4,075,269 42% Page 24 of 189 ADOPTED YTD %OF ADOPTED YTD % 2014 2014 TOTAL 2015 2015 ANNUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL BUDGET REVENUE SOURCES: TAXES: PROPERTY 6,845,170 3,583,029 52.3% 7,159,507 3,628,332 50.7% SALES 8,207,000 4,018,973 49.0% 8,640,765 4,559,435 52.8% PUBLIC SAFETY 1,100,000 476,236 43.3% 1,200,000 512,841 42.7% UTILITY 7,789,544 3,523,878 45.2% 8,349,000 3,426,706 41.0% OTHER 1,090,000 489,093 44.9% 1,046,000 531,487 50.8% LICENSES & PERMITS 1,124,800 891,191 79.2% 1,304,500 1,031,367 79.1% INTERGOVT REVENUE 1,496,000 400,459 26.8% 1,566,170 425,060 27.1% CHARGES FOR SERVICES 5,391,233 2,368,274 43.9% 6,224,521 2,242,062 36.0% FINES & FORFEITS 882,000 371,744 42.1% 806,650 362,647 45.0% MISC. REVENUE 581,160 245,546 42.3% 437,465 180,467 41.3% DEBT AND TRANSFERS IN 4,077,956 57,500 1.4% 8,471,423 57,500 0.7% TOTAL REVENUES 38,584,863 16,425,923 42.6% 45,206,001 16,957,904 37.5% BEGINNING FUND BALANCE 5,902,824 6,245,218 6,501,765 9,383.161 TOTAL SOURCES 44,487,687 22,671,141 51.0% 51,707,766 26,341,065 50.9% EXPENDITURES: CITY COUNCIL 113,152 44,606 39.4% 113,543 44,697 39.3% MUNICIPAL COURT 1,481,060 602,026 40.6% 1,564,015 614,880 39.3% CITY MANAGER 1,035,567 540,236 52.2% 1,280,054 571,018 44.6% POLICE 12,338,014 5,056,062 41.0% 12,867,742 5,517,361 42.9% FIRE 5,146,376 2,171,150 42.20/6 5,797,612 2,588,676 44.7% ADMIN & COMMUNITY SVCS 6,618,351 2,845,131 43.0% 7,458,396 3,171,242 42.5% COMMUNITY DEVELOPMENT 1,442,650 553,719 38.4% 1,518,261 607,367 40.0% ENGINEERING 1,771,200 686,325 38.7% 1,811,064 631,469 34.9% LIBRARY 1,148,380 511,840 44.6% 1,153,680 524,325 45.4% NON -DEPARTMENTAL 2,662,343 814,195 30.6% 3,082,901 751,615 24.4% DEBT AND TRANSFERS OUT 5,288,388 1,183,576 22.4% 9,365,296 444,470 4.7% TOTAL EXPENDITURES 39,045,481 15,008,866 REQUIRED ADJUSTMENTS RELATING TO REVENUE RECOGNITION*: ENDING FUND BALANCE 5,442,206 7,662,275 TOTAL EXPEND & END FUND SAL 44,487,687 22,671,141 UNRESTRICTED CASH AND INVESTMENTS: 5,503,314 38.4% 46,012,564 15,467,020 33.6% EXPECTED PERCENTAGE OF REVENUES AND EXPENDITURE, FOR 5 MONTHS: *2014 revenue accruals to be reversed in 2015 These statements are intended for Management use only. (3,514,678) 5,695,202 7,359,367 51,707,766 22,826,387 4,075,269 42% Page 24 of 189 AGENDA REPORT FOR: City Council June 5, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 Rick White, Director Community & Economic Development FROM: Dave McDonald, City Planner Community & Economic Development SUBJECT: Road 80 Annexation (MF# ANX 2015-001) I. REFERENCE(S): Overview Map Cost and Regulatory Comparison Proposed Ordinance IL ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT PUBLIC HEARING: MOTION: I move to adopt Ordinance No. , an Ordinance annexing certain real property to the City of Pasco, and, further, authorize publication by summary only. III. FISCAL IMPACT: Certain taxes and fees will be received by the City for the annexation area and the City will spend more for certain service functions. Overall the additional expense will be minimal due to the fact that major service functions (Police, Fire and Chiawana Park) are already in place. IV. HISTORY AND FACTS BRIEF: In January of this year the Council approved the formation of an "Annexation Facts Committee" comprised entirely of County residents. Over a two month period the Committee developed a "Cost and Regulatory Comparison" matrix that was provided to all property owners within the proposed Road 80 Annexation Area (a copy is attached to this report). Following the work of the Annexation Facts Committee a legally sufficient "Notice of Page 25 of 189 V. Intent to Commence Annexation Proceedings" was prepared by City Staff and received by the Council. On May 18, 2015 the Council passed Resolution No. 3640 accepting the boundary for the proposed Road 80 Annexation Area. The annexation petition for the annexation boundary approved by Resolution 3640 was prepared and submitted to the County Assessor for certification. The petition has been reviewed by the County Assessor and has been determined to be sufficient to constitute a legally acceptable petition under the direct petition method of annexation. Under the direct petition method of annexation, the petition must be signed by property owners representing at least sixty percent of the assessed value of the proposed annexation area. However, in situations where a proposed annexation has at least eighty percent of the annexation boundary coterminous to city limits, as is the case with the Road 80 Annexation, the petition only needs to be signed by property owners representing at least fifty percent of the assessed value for the area. The County Assessor certified the Road 80 Annexation petition as representing fifty-five percent of the assessed value for the area; more than enough signature value to effectuate the annexation. The next step in the annexation process requires the City Council to hold a public hearing on the proposed annexation. The annexation area contains 688 acres, an estimated 437 dwellings and a population of approximately 1,224. The current assessed taxable value of the proposed annexation area is $121,469,100. The proposed annexation Ordinance, if adopted, will cause the properties in question to be annexed into the City subject to the following conditions: 1. The Pasco Comprehensive Plan will continue to be applicable to the area; 2. The annexation area will not assume any existing bonded indebtedness; 3. The annexation area will be assigned to Voting District #5; and 4. The annexation area will be zoned RS -20 per pre -zone Ordinance No. 4221. The annexation will become effective on July 1 st of this year. 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U •C w G �'o o oQ o e o c ti c'o °a o•y 03Qti up•° i�Y o�° i3 NyN 0 °L' vwA �s°.ys M 0 r ti jn� 40 x y U C4 p>>O CO� a i3 Y o O , U•y0 Z "p~> bU cb0 P. O 0 O 4. 'fl q o v y w a a d to y C o o— a Cd a° •��' i 6 •a0 0 ° > 0 O d' d w ice. 5 b N �, .. O� o •g Q) A. id N O °+ U y N Y vi O .+" • V 0 WO °> p p O o p 4a p �N 2 0� R tia 4r CU 4- .aL KU HO cC LL0 O � N O y N pp G. Page 40 of 189 WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3' Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE relating to annexation and annexing certain real property to the City of Pasco. WHEREAS, the City Council of the City of Pasco has declared, its intent to annex the following described territory (Section 1.) known as the Road 80 Annexation Area to the City of Pasco pursuant to RCW Chapter 35A.14; and WHEREAS, in January of 2015 the City Council approved the formation of an "Annexation Facts Committee" to review information related to the possible annexation of all unincorporated properties west of Road 80; and WHEREAS, said "Annexation Facts Committee" consisted of residents and property owners only from within the proposed Road 80 annexation Area; and WHEREAS, a legally sufficient intent to commence annexation proceedings by the direct petition method of annexation was prepared by City staff and received by the City Council; and, WHEREAS, the City Council held a public meeting on May 18, 2015 to review the notice of intent to commence annexation proceedings for the Road 80 Annexation Area; and, WHEREAS, the City Council passed Resolution No. 3640 on May 18, 2015 accepting the proposed territory for annexation, determining that simultaneous zoning would be required and that the annexation area will not require the assumption of existing City bonded indebtedness; and, WHEREAS, on June 1, 2015 the second of two public hearings on zoning for the proposed annexation area was held to afford the public an opportunity to provide input on proposed zoning regulations for the proposed Road 80 Annexation Area; and, Page 41 of 18E WHEREAS, following testimony at June 1, 2015 public hearing the City Council of the City of Pasco adopted Ordinance No. 4221 establishing RS -20 (Suburban District) for the proposed Road 80 Annexation Area; and, WHEREAS, Ordinance No. 4221 was recorded in the Office of the Franklin County Auditor's on June 2, 2015; and, WHEREAS, the Franklin County Assessor on June 2, 2015 officially certified the sufficiency of the annexation petition prepared and filed by City officials; and, WHEREAS, the Road 80 Annexation Area is situated within the designated Pasco Urban Growth Area; and, WHEREAS, City of Pasco utilities, police, fire and other services are adequate and available to serve the proposed annexation area; and, WHEREAS, notice of the public hearing on the proposed annexation was published and posted as required by law; and, WHEREAS, a public hearing on the proposed annexation was held on June 15, 2015; and, WHEREAS, the City Council finds that annexation of the Road 80 area will improve the efficiency and distribution of necessary municipal services within the City's designated Urban Growth Area, to the benefit of all Pasco residents and taxpayers; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. That the following described area, situated in Franklin County, Washington to - wit: Beginning at a point on the south line of the FCID canal right-of-way, said point being the intersection with the west right-of-way line of Road 96 and the south right-of-way line of the FCID canal right-of-way; Thence southerly along the west right-of-way line of Road 96 to the intersection with the northeast comer of Lot 2 Short Plat 99-05; Thence westerly along the north line of Lot 2 Short Plat 99-05 to the northwest corner thereof; Thence southerly along the west line of Lot 2 Short Plat 99-05 to the southwest corner thereof, said southwest corner also being a point on the north line of Lot, 3 Basswood Estates; Thence westerly along the north line of Lot 3, Basswood Estates to the northwest corner of said Lot 3; Thence southerly along the west line of said Lot 3 to the southwest corner of said Lot 3, said corner also being the northwest corner of Lot 4, Basswood Estates; Thence southerly along the west line of Lot 4, Basswood Estates to the southwest corner of said Lot 4, said southwest comer also being the northwest corner of Lot 4 Short Plat 2003-01; Thence southerly along the west line of Lot 4, Short Plat 2003-01 to the north right-of-way line of West Argent Road; Thence west along the north right-of-way line of West Argent Road to the intersection with the northerly projection of the east right-of-way line of Road 100; Thence southerly along said projection to the intersection with the south right-of-way line of -2- Page 42 of 189 West Argent Road; Thence continuing southerly along the east right-of-way line of Road 100 to the intersection with the north right-of-way line of West Court Street; Thence easterly along the north right-of-way line of West Court Street to the intersection with the east right-of-way line of Road 84; Thence southerly along the east right-of-way line of Road 84 to the intersection with the northwest corner of Lot 13, Block 1, Back Roads Country Estates; Thence easterly along the north line of said Lot 13, Back Roads Country Estates and continuing easterly along the north line of Lots 14, and 15, Block 1, Back Roads Country Estates to the intersection with the northeast corner of said Lot 15, said comer of said Lot 15, being 635.78 feet more or less from the east right-of-way line of West Court Street; Thence southerly for a distance of 24 feet; Thence easterly for a distance of 6 feet to the northeast/southwest line of Lot 17, Block 1, Back Roads Country Estates; Thence easterly along the north line of said Lot 17 and Lots 18, 19, 20, 21 and 22, Block 1, Back Roads Country Estates to the intersection with the west right-of-way line of Road 80; Thence continuing easterly along the easterly projection of the north line of Lot 22, Block 1 Back Roads Country Estates to the intersection with the east right-of-way line of Road 80; Thence northerly along the east right-of-way line of Road 80 to the intersection with the northwest corner of Lot 4, Short Plat 76-10; Thence westerly along the westerly projection of the north line of Lot 4, Short Plat 76-10 to the intersection with the west right-of-way line of Road 80; Thence northerly along the west right-of-way Road 80 to the intersection with the south right-of-way line of West Argent Road; Thence westerly along the south right-of-way line of West Argent Road to the intersection with the east right-of-way line of Road 84; Thence westerly along the westerly projection of the south right-of-way line of West Argent Road to the intersection with the southerly projection of the west right-of-way line of Road 84; Thence northerly along said projection of Road 84 and continuing northerly along the west right-of-way line of Road 84 to the intersection with the south right-of-way line of the FCID canal right-of-way; Thence westerly along said canal right-of-way to the point of beginning. as depicted in the map attached hereto and labeled Exhibit "A" and the same is hereby annexed to the City of Pasco and is hereby declared to be within the corporate limits of the City of Pasco. Section 2. That the Comprehensive Plan of the City of Pasco be and the same is hereby adopted for the above described tract of land. Section 3. That said tract of land shall not assume any portion of the existing bonded indebtedness of the City of Pasco. Section 4. That said tract of land shall be in Voting District # 5. Section 5. That the annexation area shall be zoned RS -20 (Suburban District) per pre- zone Ordinance No. 4221 adopted by the Pasco City Council following a public hearing on June 1, 2015 and recorded with the Franklin County Auditor on June 2, 2015 under Auditors File No. 1829810. Section 6. That a certified copy of this ordinance be and the same shall be filed with the Franklin County Commissioners. Section 7. This ordinance shall be in full force and effect on July 1, 2015. -3- Page 43 of 189 PASSED by the City Council of the City of Pasco this 15a' day of June 2015. Matt Watkins, Mayor ATTEST: Debra Clark, City Clerk -4- APPROVED AS TO FORM Leland B. Kerr, City Attorney Page 44 of 189 AGENDA REPORT FOR: City Council TO: Dave Zabell, City Manager Rick White, Director Community & Economic Development FROM: Dave McDonald, City Planner Community & Economic Development SUBJECT: Sharma Annexation (MF# ANX 2014-003) I. REFERENCE(S): Overview Map Proposed Annexation Ordinance Proposed Zoning Ordinance Planning Commission Report: 5/21/15 Planning Commission Minutes Dated: 4/16/15 & 5/21/15 June 5, 2015 Regular Meeting: 6/15/15 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT PUBLIC HEARING: MOTION A: I move to adopt Ordinance No. , an Ordinance annexing certain real property to the City of Pasco and, further, authorize publication by summary only. MOTION B: I move to adopt Ordinance No. , an Ordinance establishing R- 1 and RS -1 zoning for the Sharma Annexation Area as recommend by the Planning Commission and, further, authorize publication by summary only. III. FISCAL IMPACT: Certain taxes and fees will be received by the City for the annexation area and the City will spend more for certain service functions. IV. HISTORY AND FACTS BRIEF: On November 3, 2014 the City Council passed Resolution No. 3597 accepting a "Notice and Intent" to commence annexation proceedings for the Sharma Annexation Page 46 of 189 Area. The Sharma Annexation Area includes three parcels occupying 144 acres at the northwest corner of Burns Road and Broadmoor Boulevard. Following the passage of the resolution accepting the "Notice of Intent' to annex and establishing a proposed annexation boundary, the City Council has the option of annexing all or a portion of the annexation area. In this case Mr. Sharma has returned a petition with signatures representing two of the three parcels in the approved annexation boundary. The petition represented 100 percent of the value for two of the parcels. The petition has been reviewed by the County Assessor and has been determined to be sufficient to constitute a legally acceptable petition under the direct petition method of annexation. The next step in the annexation process requires the City Council to hold a public hearing on the proposed annexation. V. DISCUSSION: The proposed annexation Ordinance (Motion "A"), if adopted, will cause the area in question to be annexed to the City subject to the following conditions: 1. The Pasco Comprehensive Plan will continue to be applicable to the area; 2. The annexation area will not assume any existing bonded indebtedness; and 3. The annexation area will be assigned to Voting District #5. The Planning Commission concluded a zoning determination hearing for the proposed annexation area on May 21, 2015 and recommended the area be zoned R-1 (Low Density Residential) with an agreement and RS -1 (Suburban Residential) and. Motion "B" will establish zoning for the annexation area. The annexation will become effective on July 1 st of this year. Page 47 of 18f 4 .f h limmek 'I 1 I WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3'" Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE relating to annexation and annexing certain real property to the City of Pasco. WHEREAS, the City Council of the City of Pasco has declared, its intent to annex the following described territory known as the Sharma Annexation Area to the City of Pasco pursuant to RCW Chapter 35A.14; and WHEREAS, a legally sufficient intent to commence annexation proceedings by the petition method of annexation was submitted and received by the City; and, WHEREAS, The City Council held a public meeting on December 3, 2014 to review the notice of intent to commence annexation proceedings for the Sharma Annexation Area; and, WHEREAS, the Pasco City Council passed Resolution No. 3597 on December 3, 2014 accepting the proposed territory for annexation, determining that would be required and that the annexation area will not require the assumption of existing City bonded indebtedness; and, WHEREAS, the Franklin County Assessor on June 2, 2015 officially certified the sufficiency of the annexation petition prepared and filed by City officers; and, WHEREAS, the Sharma Annexation Area is situated within the designated Pasco Urban Growth Area; and, WHEREAS, City of Pasco utilities, police, fire and other services are adequate and available to serve the proposed annexation area; and, WHEREAS, notice of the public hearing on the proposed annexation was published and posted as required by law; and, Page 49 of 189 WHEREAS, a public hearing on the proposed annexation was held on June 15, 2015; and, WHEREAS, the City Council finds that annexation of the Sharma area will improve the efficiency and distribution of necessary municipal services within the City's designated Urban Growth Area, to the benefit of all Pasco residents and taxpayers; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: wit: Section 1. That the following described area, situated in Franklin County, Washington to - The southeast quarter of the southeast quarter of Section 6, Township 9 North, Range 29 East, W.M. Franklin County, Washington; except that portion deeded for Broadmoor Boulevard. as depicted in the map attached hereto and labeled Exhibit "A" and the same is hereby annexed to the City of Pasco and is hereby declared to be within the corporate limits of the City of Pasco. Section 2. That the Comprehensive Plan of the City of Pasco be and the same is hereby adopted for the above described tract of land. Section 3. That said tract of land shall not assume any portion of the existing bonded indebtedness of the City of Pasco. Section 4. That said tract of land shall be in Voting District # 5. Section 5. That a certified copy of this ordinance be and the same shall be filed with the Franklin County Commissioners. Section 6. This ordinance shall be in full force and effect on July 1, 2015. PASSED by the City Council of the City of Pasco this 15th day of June 2015. Matt Watkins, Mayor ATTEST: Debra Clark, City Clerk -2- APPROVED AS TO FORM Leland B. Kerr, City Attorney Page 50 of 189 WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3rd Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE of the City of Pasco, Washington, assigning zoning to certain real property within the City of Pasco. WHEREAS, on May 21, 2015, the Planning Commission of the City of Pasco concluded a public hearing and develop a recommendation for the assignment of zoning to certain property; in the event the property was incorporated within the City; and WHEREAS, on June 15, 2015, Ordinance No. effectively annexed certain real property to the City of Pasco; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. That the following described area, situated in Franklin County, Washington to -wit: The south half of the southeast quarter of the southeast quarter of Section 6, Township 9 North, Range 29 East, W.M. Franklin County, Washington; except that portion dedicated for County Roads as depicted in the map attached hereto and labeled Exhibit No. "1" be and the same is hereby assigned R- 1 (Low Density Residential) zoning. Section 2. That the change of the zoning classification as provided in Section 1 is contingent, and conditioned upon the execution and compliance with a Concomitant Agreement entered into between the Petitioner and the City which will attach to and ran with the real property described in Section 1 above. Said Concomitant Agreement is attached to this Ordinance as Exhibit No "2". Section 3. That the following described area, situated in Franklin County, Washington to -wit: Page 52 of 18£ The north half of the southeast quarter of the southeast quarter of Section 6, Township 9 North, Range 29 East, W.M. Franklin County, Washington; except that portion dedicated for County Roads as depicted in the map attached hereto and labeled Exhibit No. "1" be and the same is hereby assigned RS -1 (Suburban Residential) zoning. Section 4. That any and all zoning maps be and the same are hereby amended to conform to the aforesaid assignment of zoning. Section 5. This ordinance shall be in full force and effect on July 1, 2015. PASSED by the City Council of the City of Pasco this 15`" day of June, 2015. Matt Watkins, Mayor ATTEST: Debra Clark, City Clerk -2- APPROVED AS TO FORM: Leland B. Kerr, City Attorney Page 53 of 189 Exhibit #2 CONCOMITANT ZONING AGREEMENT WHEREAS, the City of Pasco, Washington, a non -charter code city, under the laws of the State of Washington (Chapter 35A.63 R.C.W. and Article 11, Section 11 of the Washington State Constitution) has authority to enact laws and enter into agreements to promote the health, safety and welfare of its citizens, and thereby control the use and development of property within its jurisdiction; and WHEREAS, the Owner(s) of certain property have applied for a rezone of such property described below within the City's jurisdiction; and WHEREAS, the City pursuant to R.C.W. 43.12(c), the State Environmental Policy Act, should mitigate any adverse impacts which might result because of the proposed rezone; and WHEREAS, the City of Pasco and the Owner(s) are both interested in compliance with the Pasco Municipal Code provisions relating to the use and development of property situated in the City of Pasco, described as follows: The south half of the southeast quarter of the southeast quarter of Section 6, Township 9 North, Range 29 East, W.M. Franklin County, Washington; except that portion dedicated for County Roads (Parcel # 115180064) WHEREAS, the Owner(s) have indicated willingness to cooperate with the City of Pasco, its Planning Commission and Planning Department to insure compliance with the Pasco Zoning Code, and all other local, state and federal laws relating to the use and development of the above described property; and WHEREAS, the City, in addition to civil and criminal sanctions available by law, desires to enforce the rights and interests of the public by this concomitant agreement, NOW, THEREFORE, In the event the above-described property is rezoned by the City of Pasco to R-1 (Low Density Residential) and in consideration of that event should it occur, and subject to the terms and conditions hereinafter stated, the applicant does hereby covenant and agree as follows: 1. The Owner(s) promise to comply with all of the terms of the agreement in the event the City, as full consideration herein grants a rezone on the above-described property. 2. The Owner(s) agrees to perform the terms set forth in Section 4 of this agreement. 3. This agreement shall be binding on their heirs, assigns, grantees or successors in interest of the Owner(s) of the property herein described. CONCOMITANT ZONING AGREEMENT PAGE t OF 2 Page 55 of 189 4. Conditions: Exhibit #2 A. The minimum lot size shall not be less than 8,500 square feet The person(s) whose names are subscribed herein do hereby certify that they are the sole holders of fee simple interest in the ,above-described /property: � Owner: � µ-'f1'n ° STATE OF WASHINGTON) ) ss. County of Franklin On this '_ day of Q.,, N, -a— , 2015, before me, the undersigned, duly commissioned and sworn, personally appeared A 4,¢.&*_ to me known to be the individual(s) described above and who executed the within and foregoing instrument as an agent of the owner(s) of record, and acknowledged to me that he/she/they signed the same as his/her/their free and voluntary act and deed, for the uses and purposes therein mentioned, and on oath stated that he/she/they is/are authorized to execute the said instrument. GIVEN under by hand and official seal this day of �, 2015. Notary Public State of Washington Notary Public in and for the State KRYSTLEL.SHANKS MY COMMISSION EXPIRES of Washington, residing at Pa-se.c7 January 5,2016 CONCOMITANT ZONING AGREEMENT PAGE 2 OF Page 56 of 189 REPORT TO PLANNING COMMISSIONER MASTER FILE NO: (MF# ZD2015-002) APPLICANT: City of Pasco HEARING DATE: 4/16/2015 PO Box 293 ACTION DATE: 5/21/2015 Pasco, WA 99301 BACKGROUND REQUEST: Develop zoning recommendation for the Sharma Annexation Area. 1) AREA ID: Area Size # of Dwellings Population Sharma Annexation Area 144 acres 2 5 2) UTILITIES: City water lines are located at the corner of Burns Road and Broadmoor Boulevard. A water line is also located in Burns Road along the southern boundary of the proposed annexation area. 3) LAND USE AND ZONING: The proposed annexation area is currently zoned AP 20 under the County zoning regulations. Most of the site in being farmed. 4) COMPREHENSIVE PLAN: The Comprehensive Plan designates the proposed annexation area for low density residential development. Surrounding properties are also designated for low density residential development. 5) ENVIRONMENTAL DETERMINATION: The City of Pasco is the lead agency for this project. Based on the SEPA checklist, the adopted City Comprehensive Plan, City development regulations, and other information, a threshold determination resulting in a Determination of Non -Significance (DNS) has been issued for this project under WAC 197-11-158. ANALYSIS On November 11, 2014 the City Council approved Resolution 3547 accepting a Notice of Intent to commence annexation proceedings for a 157 acre area located at the northwest corner of Broadmoor Boulevard and Burns Road. Following acceptance of the Notice of Intent and prior to Council action on an annexation petition, the Planning Commission is to hold a zoning determination hearing. The purpose of said hearing is for the Planning Commission to recommend appropriate zoning for the proposed annexation area in the event it may become part of the City. In determining the most appropriate zoning for the annexation area the Planning Commission needs to consider the existing land uses, development patterns, current County zoning and policies of the Comprehensive Plan and the land use designations of the land use map. The Planning Commission Page 57 of 189 also needs to be guided by the criteria in PMC 25.88.060 (as discussed below) in developing a zoning recommendation. The annexation area contains a farm and two dwellings. The largest parcel is 119 acres and is being farmed. The other two parcels are vacant with the exception of a mobile home and an abandoned house. The Comprehensive Plan designates the annexation area for low-density residential development. The Comprehensive Plan describes low-density development as residential development with two to five units per acre. Zoning districts applicable to the low-density designation include RS -20, RS -12, RS -1, R-1 and R -1-A. Zoning must be consistent with the Comprehensive Plan which limits the range of districts to the ones previously listed. No commercial or industrial zoning can be considered for the annexation area. There are no subdivisions within the annexation area to provide an established development pattern from which to consider zoning. The Broadmoor Estates subdivision to the Southeast of the annexation area is the closets subdivision from which to draw a comparison. Broadmoor Estates was zoned R-1 with conditions establishing an average lot size of around 9,000 square feet. The RS -1 zoning district would most closely meet the established development configuration of Broadmoor Estates. To achieve a development pattern similar to Broadmoor Estates the annexation area would need to be zoned R-1 with a concomitant agreement. The Planning Commission had a lengthy discussion over the range of low- density zoning that would be appropriate for the annexation area. Considering input from adjoining property owners the general consensus was that the areas should be zoned with densities similar to Broadmoor Estates near the southern end of the site and then transitioning to lower densities toward the north end of the site. The site then would be zoned R-1 and RS -1 near the intersection of Broadmoor Boulevard and Burns Road with RS -12 and RS -20 for areas to the north. The northern edge of the site would be zoned RS -20. The initial review criteria for considering a rezone application are explained in PMC 25.88.030. The criteria are listed below as follows: 1. The changed conditions in the vicinity which warrant other or additional zoning: • The property is located within the Pasco Urban Growth Boundary. • The property in question may be annexed to the City of Pasco. • The major change is the annexation of the parcels in question. Upon annexation the area will need to be zoned. 2 Page 58 of 189 • Burns Road and Broadmoor Boulevard have both been extended past the annexation site. • A major water line has been installed in Burns Road and is being installed north in Dent Road. • Properties along Dent Road are being platted and developed with single-family dwellings. • The Six Year Capital Facilities Plan includes the installation of a major sewer trunk line in Burns Road. • Broadmoor Estates is located directly to the southeast of the site. • The Pasco School District has purchased property 1,400 feet to the east of the annexation area for a future school. 2. Facts to justify the change on the basis of advancing the public health, safety and general welfare. The property may be annexed to the City and will need to be zoned. The justification for the rezone is the fact that if a zoning designation is not determined the property could become annexed without a zoning. For the advancement of the general welfare of the community the property needs to be zoned consistent with the established development patterns. 3. The effect rezoning will have on the nature and value of adjoining property and the Comprehensive Plan. Zoning the southeast corner of the proposed annexation area to generally reflect the current zoning in the closest subdivision to the east will maintain the current nature and value of Broadmoor Estates. Graduating zoning from R-1 to RS -20 in a south to north direction with RS -20 along the northern boundary of the annexation area will provide consistency with the lower density development in the County. The RS - 20 zoning would match the zoning of the new subdivisions being developed along Dent Road to the west in the County. Past annexation rezones have not negatively altered the value of adjoining properties in the City or the County 4. The effect on the property owners or owner of the request is not granted. Without the annexation area being assigned a specific zoning district, the area will essentially be un -zoned upon annexation. The area needs to be zoned for the benefit of the property owners and property owners adjoining the proposed annexation area. 5. The Comprehensive Plan land use designation for the property. The Comprehensive Plan designates all of the annexation area for low- density residential development. The Growth Management Act requires zoning to be consistent with the Comprehensive Plan. R-1, RS -1, RS -12 3 Page 59 of 18£ and RS -20 are all listed residential zoning districts that are consistent with the low-density residential land use designation of the Comprehensive Plan. FINDINGS OF FACT Findings of fact must be entered from the record. The following are initial findings drawn from the background and analysis section of the staff report. The Planning Commission may add findings to this listing as the result of factual testimony and evidence submitted during the open record hearing. 1) The site is within the Pasco Urban Growth Boundary. 2) The Urban Growth Boundary was established by Franklin County in 1994. 3) The property is being proposed for annexation by August 2015. 4) The annexation area is identified in the Comprehensive Plan for low-density residential uses. 5) The Comprehensive Plan indicates RS -20, RS -12, RS -1 R-1 and R -1-A zoning district are applicable to the low-density land use designation 6) The Growth Management Act requires zoning to be consistent with the Comprehensive Plan. 7) Burns Road and Broadmoor Boulevard have both been extended past the annexation site. 8) A major water line has been installed in Burns Road and is being installed north in Dent Road. 9) New single-family residential subdivisions are being developed along Dent Road north of Burns Road. 10)The new subdivisions along Dent Road are zoned RS -20 in the County. 11)Broadmoor Estates directly across Broadmoor Boulevard to the southeast of the annexation area is zoned R-1. 12)In 2014 the Pasco School District purchased 40 acres of land located 1,400 feet directly east of the proposed annexation area. The land was purchased for a new school to be built in the future 13)The Six Year Capital Facilities Plan includes the installation of a major sewer trunk line in Burns Road. 14)RS-1 zoning will permit development with lots sizes similar to those in the Broadmoor Estates subdivision to the southeast of the annexation site. CONCLUSIONS BASED ON STAFF FINDINGS OF FACT Before recommending approval or denial of a rezone the Planning Commission must develop its conclusions from the findings of fact based upon the criteria listed in PMC 25.88.060 and determine whether or not: (1) The proposal is in accord with the goals and policies of the Comprehensive Plan. 0 Page 60 of 1K Zoning the area low-density (R-1 through RS -20) will reflect the land use designations in the Comprehensive Plan and will cause the proposal to be in accord with the Plan. (2) The effect of the proposal on the immediate vicinity will not be materially detrimental. Zoning the area R-1, RS -1, RS -12 and RS -20 will support the land use designations of the Comprehensive Plan for the annexation site and surrounding properties. (3) There is merit and value in the proposal for the community as a whole. It is in the best interest of the community and neighborhood to have the annexation area zoned to support the low density nature of the area. Without zoning, the value and character of the neighborhood would not be protected or maintained. (4) Conditions should be imposed in order to mitigate any significant adverse impacts from the proposal. Conditions should be imposed on any R-1 zoning to ensure lots sizes are consistent with development within the Broadmoor Estates subdivision to the southeast. (5) A concomitant agreement should be entered into between the City and the petitioner, and if so, the terms and conditions of such an agreement. A concomitant agreement is needed to maintain lot size consistency with Broadmoor Estates for the area at the northwest corner of Broadmoor Boulevard and Burns Road. STAFF RECOMMENDATION MOTION: I move the Planning Commission adopt the Findings of Fact as contained in the May 21, 2015 staff report. MOTION: I move, based on the findings of fact as adopted, the Planning Commission recommend the City Council zone the Sharma Annexation Area to R-1 through RS -20, as indicated on the zoning map identified as Exhibit # 1 attached to the May 21, 2015 staff report. 5 Page 61 of 1K I Planning Commission Minutes 4/16/15 E. Zoning Determination Zoning Determination for Sharma Annexation (City of Pasco) (MF# ZD 2015-0021 Chairman Cruz read the master file number and asked for comments from staff. Dave McDonald, City Planner, discussed the zoning determination for the Sharma Annexation. Staff has worked with the property owners for some time in an effort to have the property annexed. The site consists of three separate parcels with a total of 144 acres. The site is within the urban growth boundary and designated for low- density residential development in the Comprehensive Plan. Under low-density residential the property could either be zoned RS -20, RS -12, R -S-1, R-1 or R -1-A. Staff recommended zoning the area RS -1 (Low -Density Residential). Chairman Cruz asked why RS -12 zoning isn't proposed. The site is has a lot of agriculture around it, there is a surplus of R-1 and RT zoning. He suggested splitting the zoning to have some RS -1 and some RS -12. Mr. McDonald responded that eventually the property to the south will be developed and the property owner seeking zoning similar to what is on the east side of the road. The School District recently bought a site to the east which will likely be a middle school. Property to the west in the County is starting to be converted to single-family residential. Another thing to consider is the expense of extending utilities larger the lots make the extensions more expensive. Chairman Cruz stated that if the goal is to drive population to the center of the city then the zoning on this property should be lower and have the higher density neighborhoods closer to the city center. This site is on the edge of town and RS -1 zoning might be a little too dense. He added that he would feel more comfortable splitting the zoning and having R-1 zoning on the south end of the property and RS -12 or RS -20 on the north end of the property. Commissioner Khan asked what the average lot sizes are of the homes to the west. Mr. McDonald answered RS -20 due to the fact that there's no sewer. Commissioner Khan asked what the other surrounding parcels are zoned. Mr. McDonald explained the surrounding zoning. Commissioner Khan asked if there are plans to the north. Mr. McDonald answered that currently that land is outside of the urban growth Page 65 of 189 boundary so it will remain that way until the urban growth boundary is modified. Rick White, Community & Economic Development Director, added that the City's urban boundary is surrounded by production agriculture and owned by many of the same individuals. At this time they are not interested in selling property for urban development. Price of agricultural commodity is very high and everyone is doing well. Water rights are also getting more difficult to purchase. There might be a time in the near future when the City will have to take a look at the urban boundary in this area and possibly make some difficult decisions on holding the line on density and utilities. The School District paid a great deal of money for their property but they had to do it. Commissioner Khan stated that she is in agreement with Commissioner Cruz in transitioning to RS -12 due to the land to the west being larger lot sizes. Chairman Cruz responded that the reason he suggested the RS -12 zoning is to concentrate density and commercial property around nodes. Commissioner Bowers was also in agreement with Chairman Cruz. She asked if his proposed zoning could encourage growth off of Road 100. Chairman Cruz answered that it could allow for a better balance and transition from more intense to less intense zoning districts. Commissioner Bowers asked staff how they felt about the Chairman Cruz's proposal. Mr. McDonald replied that it has merit and staff likes to see a higher density closer to major intersections for dispersing the traffic and it could work well with the bottom half of the site being RS -1 and the top half being RS -12. Keeping part of it R -S-1 would help spread the cost of the utilities making it more affordable to purchase those lots and homes. Chairman Cruz noted that it is important to have a variety of zoning and homes. Commissioner Bachart added that he would like to see RS -20 zoning in the top and R- S -1 in the bottom. Commissioner Greenaway stated that she would like to see some RS -12 zoning in along the I-182 Corridor on the northern half since there isn't much of that zoning offered there. Commissioner Bowers asked where she could find the land use definitions for the different zones. Mr. McDonald responded that they are found in the zoning regulations and he briefly defined them. Chairman Cruz stated developers tend to maximize their property and build as many Page 66 of 18£ homes allowed to maximize their return. Mr. White stated you will get what you allow. Commissioner Khan asked for clarification on the RT zone to the south. Mr. McDonald responded that it is a holding zone until the time it is ready to be rezoned and developed. The Comprehensive Plan has the northern part of that property as low density residential and a band of high density residential on the southern portion followed by commercial. Joseph Flerchinger, 7215 Byers Road, owns a small vineyard and the thought of development moving towards his property is concerning but having RS -12 or RS -20, preferably RS -20, zoning would make him feel more comfortable. Chairman Cruz stated that in the future when subdivision plats come forward to the Planning Commission they can look at conditions requiring walls, barriers and buffers. Commissioner Polk asked if there would be a specific timeline. Chairman Cruz answered that there isn't a timeline. It is all dependent on when a developer is ready to develop the property. Commissioner Bowers asked what the zoning is for the vineyard on Burden Boulevard near Road 60. Mr. McDonald answered that it is zoned C-1. They had to get a special permit. Commissioner Bowers asked Mr. Flerchinger if that zoning would be appropriate near his property for his vineyard. Mr. Flerchinger responded that close to his property he would like to see closer to one acre lots but then wouldn't mind a gradient to smaller lot sizes. Commissioner Bachart stated that when the site is developed there cannot be complaints on the vineyard since it is already existing. Rick Aldrich, 7216 Byers Road, stated that he is a resident north of the proposed site and has lived there since 1978. It has been a very rural area and appreciates the idea of zoning larger lots to keep the character of the neighborhood. He would like to see RS -20 zoning, roughly one acre, lots. Mr. McDonald clarified that RS -20 zoning is half acre lots. Mr. Aldrich stated that he would prefer to see acre lot sizes. One of his concerns is 3 Page 67 of 189 the effect new development might have on his ability to raise cattle as well as pesticides sprayed on crops. Ashok Sharma, 1201 Brentwood Avenue, Richland, WA spoke on behalf of his application. He stated that he is the property owner of one of the southern parcels in the proposed zoning determination and would like to develop the property. His property has water, electric and sewer is roughly 2 blocks away from his site. He would like to have this developed as soon as possible. Chairman Cruz responded that most of his concern is the northern part of the proposed site and that there needs to be a gradient. There also needs to be careful planning used so that there aren't split plats. Commissioner Portugal asked for clarification as to where there is R-1 zoning in the County. Mr. White answered that there are minimum of 5 acre lots currently in the County. Commissioner Bowers had concerns about splitting the zoning into three separate zones but instead respect some of the current lot sizes and zone it as an "L" shape. Chairman Cruz responded that he isn't too picky as long as the integrity is maintained for the character of the area and that staff should work it out it bring it back to the Commission. With no further comments the public hearing was closed. The Planning Commission planned to deliberate and make a decision at the next meeting. Planning Commission Minutes 5/21/15 B. Zoning Determination Zoning Determination for Sharma Annexation Area !City of Pascol IMF # ZD 2015-0021 Chairman Cruz read the master file number and asked for comments from staff. Dave McDonald, City Planner, discussed the zoning determination application for the Sharma Annexation Area. He reminded the Planning Commission that there was considerable discussion on this item at the previous meeting. The proposal has been modified to reflect the Commissions discussion about graduated zoning being applied to the property. RS -20 was proposed for the north end of the site zoning, followed by RS -12, and RS -1 with R-1 at the southeast corner where Mr. Sharma's property is 4 Page 68 of 189 located. A concomitant agreement was recommended for the R-1 zoning to ensure minimum lot sizes would be consistent with the 8,500 square foot lots in the subdivisions to the south east. The Planning Commissioners were in agreement and liked the zoning that was proposed for the annexation area. Commissioner Portugal moved, seconded by Commissioner Greenaway, to adopt the findings of fact as contained in the May 21, 2015 staff report. The motion passed unanimously. Commissioner Portugal moved, seconded by Commissioner Greenaway, based on the findings of fact, as adopted, the Planning Commission recommend the City Council zone the Sharma Annexation Area to R-1 through RS -20, as indicated on the zoning map identified as Exhibit #1 attached to the May 21, 2015 staff report. The motion passed unanimously. 5 Page 69 of 189 AGENDA REPORT FOR: City Council June 9, 2015 TO: Dave Zabell, City Manager Regular Meering: 6/15/15 FROM: Ahmad Qayoumi, Director Public Works SUBJECT: Six-year Transportation Improvement Plan 2016-2021 I. REFERENCE(S): Plan Project Map Resolution II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: ** CONDUCT PUBLIC HEARING ** MOTION: I move to approve Resolution No. adopting the revised and extended Comprehensive Street, Storm Drain and Bridge Programs for the City of Pasco. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: Cities and counties in the State are required annually to adopt an updated Six-year Transportation Improvement Plan. The plan update is also necessary to qualify for federal and state funding. The proposed plan update includes small and large projects varying from street overlays, street widening, traffic signal projects, and ADA improvements to pedestrian facilities, as well as larger projects, such as the Lewis Street Overpass. These projects are included in the project list and depicted on the project map. The proposed six-year program update represents those projects that are anticipated to be needed within six years. Several projects will need to be coordinated with utility projects, which could change the actual timing of the projects. Although this process of Page 70 of 189 adopting a six-year plan is a State requirement, the plan is not fiscally constrained. The Council will review a more refined project list as part of the annual Six-year Capital Improvement Project plan and budgeting process. The project worksheets provide important project information such as scope, schedule and potential funding sources. Most of the projects listed will be dependent upon competitive funding, which, if not available, will impact schedule, scope, or both. Staff has been successful in obtaining state and federal grants and will continue to aggressively pursue all avenues. V. DISCUSSION: The Plan is being presented to the public in the form of a public hearing this evening. An adopted plan update is due to Washington State by June 30, 2015. Page 71 of 1K m N O 07 07 City of Pasco - Six Year Transportation Improvement Plan Year 2016-2021 6/3/2015 jProject Name Location I Project Cost I Potential Funding Sources YEAR 2016 2016 Pavement Preservation Program (Crack Seal, Overlay, Microsurfacing) Various Locations $ 1,000,000.00 Overlay Funds Powerline Road Feasibility Plan (Road 52 to Foster Wells Road) Road 52 to Foster Wells Road $ 100,000.00 Arterial Funds Pavement Rating Update (last rating in 2011) Citywide $ 100,000.00 Overlay Funds Alley Hard Surface Maintenance & Preservations Various Locations $ 80,000.00 Local Funds Transportation System Plan Various Locations $ 200,000.00 Arterial Funds/STP Annual ADA Access Handicap Ramp Retrofit Various Locations $ 60,000.00 CDBG and Local Funds Wrigley Drive Extension (Design & Construction) Wrigley Drive $ 250,000.00 Arterial/TI Traffic Signal Controller Upgrades (Construction) Various Locations $ 2,200,000.00 STP/Arterial Argent Road Widening (Construction) Road 40 to 20th Ave $ 4,000,000.00 LID Funds/STP/TIB Dual RT SB Road 68 (Construction) Burden Blvd to I-182 $ 486,000.00 STP/TIF Interchange Feasibility Study & IJR US 395 to Road 100 $ 500,000.00 STP Oregon Ave (US 397) Phase I (Construction) I-1821US 395 to "A" Street $ 7,000,000.00 STP/M/Arterial Funds/Federal Safety Funds Chapel Hill (Design) Road 68 to Road 84 $ 300,000.00 Arterial/Utility 50k Sandifur Parkway Widening (Design & Construction) Convention to Road 68 $ 300,000.00 ArteriaVFIF/STP Burden & Road 60 Traffic Signal (Design) Burden Blvd and Road 60 $ 30,000.00 General/TIF/Overlay Road 68 Triple Right (Construction) Road 68/West Bound Off Ramp $ 350,000.00 STP/Arterial Lewis Street Overpass Design & NEPA Update 2nd Avenue to Oregon Avenue $ 1,200,000.00 STP 20th Ave (Construction) Marie to Argent Road $ 1,600,000.00 1 STP/Arterial/Federal Safety Funds $ .19,756,000.00 TOTAL FOR 2016 YEAR 2017 2017 Pavement Preservation Program (Crack Seal, Overlay, Microsurfacing) Various Locations $ 1,000,000.00 Overlay Funds Powerline Road 50% Design Road 52 to Foster Wells $ 150,000.00 Arterial Funds Powerline Road 100% Design & Right -of -Way Acquisition Road 68 to Convention Road $ 200,000.00 Arterial Funds/TIF Alley Hard Surface Maintenance & Preservations Various Locations $ 100,000.00 Local Funds Annual ADA Access Handicap Ramp Retrofit Various Locations $ 60,000.00 CDBG and Local Funds I-182 Interchange Stud (US 395 to Road 68) US 395 to Road 68 $ 250,000.00 STP/A terial/TIF Road 68 Widenin - South of I-182 (Design) I-182 to Argent Road $ 100,000.00 Arterial Downtown Street (Construction) Lewis, Columbia, 3rd Ave & 4th Ave $ 2,500,000.00 TIB/Safety/Arterial/STP Lewis Street Downtown Circulation Plan 2nd Avenue to 10th Avenue $ 2,000,000.00 Arterial/STP Sandifur Parkway from Road 52 - Road 60 (Construction) Road 52 to Road 60 $ 398,000.00 TIF/STP Harris Road Realignment (Design & Construction) Sandifur Parkway & Broadmoor Blvd $ 250,000.00 Private Developer Chapel Hill (Construction) Road 68 to Road 84 $ 1,363,000.00 TIF/Overlay/STP Oregon Ave (US 397) Entrance Phase II (Construction) Oregon Ave and Ainsworth Ave 1 $ 500,000.00 LID Ore on Ave (US 397) Phase II (Construction) "A" Street to Ainsworth Ave $ 1,030,000.00 1 STP/LID Funds Road 76 Overpass - Argent to Burden (Design) Argent Road to Burden Blvd $ 9,901,000.00 ITOTAL FOR 2017 YEAR 2018 2018 Pavement Preservation Program (Crack Seal, Overlay, Microsurfacing) Various Locations $ 1,000,000.00 Overlay Funds I-182 Interchange Study & Environmental Study (US 395 to Road 68) US 395 to Road 68 $ 200,000.00 A terial/TIF/STP Oregon Ave (US 397) Phase II (Construction) "A" Street to Ainsworth Ave. $ 1,000,000.00 STP/LID Funds Alley Hard Surface Maintenance & Preservations Various Locations $ 100,000.00 Local Funds Annual ADA Access Handicap Ramp Retrofit Various Locations $ 60,000.00 CDBG and Local Funds Sacajawea Heritage Trail/Levee (Construction) Road 52 to Road 72 $ 850,000.00 GeneIal/STP/WA Grant Lewis Street Overpass Design & NEPA Update 2nd Avenue to Oregon Avenue $ 200,000.00 STP Road 68 Widening - South of I-182 (Construction) Argent Road to I-182 $ 600,000.00 Capital Improvement Funds/STP Road 76 Overpass - Argent to Burden (Design) Argent Road to Burden Blvd $ 100,000.00 STP Road 68 & Court Street Signal (Construction) Road 68 to Court Street $ 250,000.00 TIF Funds Sidewalk on Sylvester Street Overpass Sylvester Street at US 395 Overpass $ 1,500,000.00 TIB/Safety/STP $ 5,860,000.00 TOTAL FOR 2018 YEAR 2019 2019 Pavement Preservation Program (Crack Seal, Overlay, Microsurfacing) Various Locations $ 1,000,000.00 Overlay Funds Alley Hard Surface Maintenance & Preservations Various Locations $ 100,000.00 Local Funds Annual ADA Access Handicap Ramp Retrofit Various Locations $ 60,000.00 CDBG and Local Funds Lewis Street Overpass 2nd Ave to Oregon Street $ 15,000,000.00 WA State Transportation Funds Off Ramp at Road 44 WB Road 44 & I-182 $ 200,000.00 Arterial/Overlay/STP I-182 Interchange Study & Environmental Study (US 395 to Road 68) IUS 395 to Road 68 $ 200,000.00 Arterial/TIF/STP Argent & Road 100 Traffic Signal (Design & Construction) jArgent Road and Road 100 $ 250,000.00 TIF Funds YEAR 2020 2020 Pavement Preservation Program (Crack Seal, Overlay, Microsurfacing) Various Locations $ 1,000,000.00 Overlay Funds Alley Hard Surface Maintenance & Preservations Various Locations $ 100,000.00 Local Funds Annual ADA Access Handicap Ramp Retrofit Various Locations $ 60,000.00 CDBG and Local Funds Road 76 Overpass - Argent to Burden (Construction) Argent Ave to Burden Blvd $ 10,680,000.00 STP/ WA Grant Road 44 & Burden Traffic Signal Road 44 and Burden Blvd $ 160,000.00 TIF Funds Madison Ave & Burden Blvd Traffic Signal Madison Ave and Burden Blvd $ 190,000.00 TIF Funds Sidewalk on Road 68 Overpass I-182 Overpass $ 1,025,000.00 Arterial/State Grant/STP Lewis Street Overpass esign, NEPA &Railroad Easement) 12nd Ave to Oregon Avenue $ 2,000,000.00 State Grant/STP/Arteria $ 15,215, 000. 00 TOTAL FOR 2020 YEAR 2021 2021 Pavement Preservation Program Crack Seal, Overlay, Microsurfacin Various Locations $ 1,000,000.00 Overlay Funds Alley Hard Surface Maintenance & Preservations Various Locations $ 100,000.00 Local Funds Annual ADA Access Handicap Ramp Retrofit Various Locations $ 60,000.00 CDBG and Local Funds Foster Wells Interchange (Design) Foster Wells/SR 395 $ 500,000.00 State Grant/STP US -12 & "A" Street (Construction) US -12 & "A" Street $ 3,000,000.00 State Grant/STP Lewis Street Overpass (Construction) 2nd Ave to Oregon Ave $ 23,000,000.00 State Grant/STP/Arterial Road 100 Widening - South of Chapel Hill (Design & Construction) Chapel Hill Blvd to Court St $ 1,220,000.00 STP/Arterial $ 28,880,000.00 1 TOTAL FOR 2021 $ 96,992,000.00 GRAND TOTAL FOR 6 -YEAR TIP v m V A O 00 00 CITY OF PASCO SIX YEAR TRANSPORTATION IMPROVEMENT PROGI YEAR 2016 - 2021 ; ---- nil --- ni J' r �— —� /� 1■1... `,w ® �� Mimi �l�l■N��� © � �� 1 , � �� �� ^� ■�!f■���C` �:�i amiwm man �: • " �IYII11 �—�■—w� m � ��w■ ��p�■ -■w■. 111111111'ti� 1 � ■1► •• � rww7 w �=='�==- === 11111111 v .�� 1■ '_, t ; a:,r�1■��-■'moi —. �i����♦�� �■� /m1■■■= .. ■ ------- ��►�♦♦�♦� ♦ gym• \/ 1 ' IIImill I ■/���-------1�p♦♦♦♦♦ice ♦ • ��'1 1 w-----�/ ,♦♦♦�I CITY OF PIIIACllO SCALE: NTS I I I I I I A I # Project Name # Project Name # IP19ject Name # Ifroject Name V Pavement Preservation Program (Crack Seal, Overlay, Microsurfac' 11 Oregon Ave (US 397) Phase I (Construction) 21 IDowntown Street (Corotruction) 31 111d 84 & Chapel HB Traffic Signal V -Alley Hard Surface Maintenance & Preservations n Ave (US 397) Phase R 12 Ore (Construction) 22 Lewis Street Downtown Circulation Plan 32 Road 44 & Burden Traffic Signal V Annual ADA Access Handicap Ramp Retrofit 13 Chapel Hill (Design & Construction) 23 Harris Road Rea' (Desgr & Constnntion) 33 IMadison Ave & Burden Blvd Traffic Signal V Traffic Signal Controller Upgrades (Constnxtim) 14 Sandilirr Parkway Widening (Design & Corstnetion) 24 Road 76 Overpass - Argent to Broden (Design &Construction) 34 ISidewak on Road 68 Overpass 5 Powerline Road Feasibility Plan 15 Sanddirr Parkway Widening (Construction) 25 Road 68 & Court Street Signal (Construction) 35 IFoster Wells Interchange (Design) 6 Powerline Road (Design & Right -Cf -Way Acquisition) 16 Burden & Road 60 Traffic Signal (Design) 26 Off Ramp at Road 44 WB 36 US -12 & "A" Street (Construction) Wrigley Drive Extension (Design & Construction) 17 lRoad 68 Triple Right WB (Construction) 27 Argent & Road 100 Traffic Signal (Design & Corshuction) 37 Road 100 Widening - South of Chapel Hill (Design & Construction Argem Road Widening (Construction) 18 Lews Street Overpass (Design Update, NEPA, RR Esmt & Cotstructim) 28 Sacajawea Heritage TraW-evee (Construction) 38 Sidewalk on Sylvester Street Overpass Dual RT SB Road 68 (Construction) 19120th Avenue (Construction)29 Heria Ave & "A' Street Traffic S' V Pavement Rating Update 0 Interchange Feasibility Study & UR & Enviromnental Study 20 Road 68 Widening - South ofI-182 (Design) 30 Lewis St & Heritage Ave Traffic Signal ransportation System Plan IN /y s 4 RESOLUTION NO. A RESOLUTION adopting the revised and extended Comprehensive Street, Storm Drain and Bridge Programs for the City of Pasco. WHEREAS, RCW 35.77.010 provides for annual revision and extension of the Comprehensive Street Program of each city and town, after public hearing thereon; and WHEREAS, it is now time to revise and extend the Comprehensive Street, Storm Drain and Bridge Programs; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, that the City Council of the City of Pasco hereby adopts the revision and extension of the Comprehensive Street, Storm Drain and Bridge Programs for the ensuing six years as attached hereto and labeled "Six -Year Transportation Improvement Plan 2016 - 2021" incorporated by this reference as though fully set forth herein; and Be It Further Resolved, that the Comprehensive Street, Storm Drain and Bridge Programs shall be filed with the Benton -Franklin Regional Council and the State of Washington. PASSED by the City Council of the City of Pasco this 15th day of June, 2015. Matt Watkins Mayor 0_01*w Debra L. Clark City Clerk APPROVED AS TO FORM: Leland B. Kerr City Attorney Page 76 of 189 AGENDA REPORT FOR: City Council May 27, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 Rick White, Director Community & Economic Development FROM: Dave McDonald, City Planner Community & Economic Development SUBJECT: Street Vacation: Portion of Duluth St. and California Ave. (MF# VAC 2015- 009) I. REFERENCE(S): Overview Map Vicinity Map Proposed Ordinance H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. an ordinance vacating a portion of Duluth Street and a portion of California Avenue, and further, authorize publication by summary only. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The owner of the property located within Blocks 8 and 24 of the Freys Addition has petitioned for the vacation of the portion of Duluth Street adjacent to his property and a portion of California Avenue. As previously recommended, the City Council set June 15, 2015 as the date to consider the proposed vacation. V. DISCUSSION: Duluth Street is one of the streets identified for vacation in the Circulation Plan for the Oregon Avenue Corridor. California Avenue is 80 feet wide and can be reduced to 60 Page 77 of 189 feet in width. Due to the lack of utilities within the right-of-way proposed for vacation there is no need to retain an easement. Page 78 of 189 MM3 O S ct Cv/5) o a.� o I kv to �OV ow WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3d Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE VACATING A PORTION OF DULUTH STREET AND A PORTION OF CALIFORNIA AVENUE. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may vacate right-of-way; and WHEREAS, all steps and procedures required by law to vacate said right-of-way have been duly taken and performed; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That all of Duluth Street from the east line of Block 24, Freys Addition to the east line of California Avenue together with the east 10 feet of California Avenue from the north line of Duluth Street to the north line of Spokane Street except that a 25 foot radius shall be retained at the intersection of Spokane Street and California Avenue as depicted in Exhibit "1" be and the same is hereby vacated. Section 2. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, this 15'" day of June, 2015. Matt Watkins Mayor ATTEST: Debra L. Clark, City Clerk APPROVED AS TO FORM: Leland B. Kerr, City Attorney Page 81 of 189 z y N �p O �N W ct p O N �'' � NSP Pv� � U > Gp.L�FOFL � � N W Pa e82of18 AGENDA REPORT FOR: City Council May 28, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 Rick White, Director Community & Economic Development FROM: Dave McDonald, City Planner Community & Economic Development SUBJECT: Street Vacation: Portion of Road 60 (MF# VAC 2015-006) I. REFERENCE(S): Overview Map Vicinity Map Proposed Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. , an ordinance vacating a portion of Road 60, and further, authorize publication by summary only. III. FISCAL IMPACT: None fC�:iT.YIT177'/\il_1�L�JI KY t3 N I �I �i V. The City Council recently vacated the east 15 feet of Road 60 south of Sylvester Street at the request of an adjoining property owner. The property owner on the opposite side of the street has now petitioned to vacate the west 15 feet for the same section of Road 60. As previously recommended, the City Council set June 15, 2015 as the date to consider the vacation. Road 60 south of Sylvester Street is unimproved except for a pathway that provides public access to the Columbia River. Because Road 60 provides pedestrian and bicycle Page 83 of 189 access to the Columbia River levee trail, this matter was referred to the Park Board for review and comment. The Park Board considered the vacation at their May Board Meeting and recommended the vacation proposal be approved. The proposed vacation will not diminish public access to the river, in its current configuration, as the center 30 feet of Road 60 will remain in place, however, this 30 foot section of right-of-way will need to remain intact in perpetuity to ensure public access to the levee trail. The retention of an easement will not be needed in this case because there are no utilities in the Road 60 right-of-way south of Sylvester Street. Page 84 of 189 WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3`d Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE VACATING A PORTION OF ROAD 60. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may vacate right-of-way; and WHEREAS, all steps and procedures required by law to vacate said right-of-way have been duly taken and performed; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That the west 15 feet of Road 60 lying south of the south right-of-way line of West Sylvester Street, as depicted in Exhibit "1" be and the same is hereby vacated. Section 2. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, this 15'b day of June, 2015. Matt Watkins Mayor ATTEST: APPROVED AS TO FORM: Debra L. Clark, City Clerk Leland B. Kerr, City Attorney Page 87 of 189 z •O^ O I N U � O 09 db'02jct O N Q ~ (D ' w U) W W U W Pa a 88 of 18 AGENDA REPORT FOR: City Council May 28, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 Rick White, Director Community & Economic Development FROM: Dave McDonald, City Planner Community & Economic Development SUBJECT: Street Vacation: A Portion of Washington Street (MF# VAC 2015-010) I. REFERENCE(S): Overview Map Vicinity Map Proposed Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION A: I move to deny the Washington Street vacation. (Recommended) MOTION B: I move to adopt Ordinance No. an ordinance vacating a portion of Washington Street, and further, authorize publication by summary only. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The Port of Pasco and a private property owner have petitioned to vacate the portion of Washington Street between 5th Avenue and the BNSF Railroad right-of-way. As previously recommended, the City Council set June 15, 2015 as the date to consider the vacation. V. DISCUSSION: This vacation request was initially considered by the City Council in 2013. At that time the vacation was denied because of concerns over inconsistencies with the Boat Basin Page 89 of 189 and Marine Terminal Plan and Mr. Morales's plans to build a shop. Little has changed since the orginal vacation request in 2013. The Boat Basin and Marine Terminal Plan adopted by the City and Port in 2010 indicates the area along the east side of South 5th Avenue should be developed as an open landscaped area providing a buffer between the BNSF main line and the remainder of the old tank farm property to the west. Mr. Morales's proposed development is not consistent with the adopted Plan for the area. Vacating Washington Street would only serve to allow the further expansion of a project that does not support the vision of the adopted Boat Basin and Marine Terminal Plan. Staff recommends the proposed vacation be denied. A building permit can be issued for the shop without the street vacation but the fact that the street exists as a platted street complicates the permitting process. Requiring the street to be improved at the time the shop is built does not appear logical due to the fact the street dead ends into the BNSF mainline. A street improvement deferral agreement can be used to permit the construction project to proceed without the installation of the street improvements in Washington Street. Should the Council wish to vacate the right-of-way in question Motion "B" has been provide to assist in that effort. Page 90 of 189 u �\J M Air ` 4t I l�lillaillwilli iii Impalh [mili� 1A9� Co �1bQ 2 Ao ti SU® ��� Isamw 4 Aw W H Lu - 3. All 0POO EVA %i Orcti 0POO EVA WHEN RECORDED PLEASE RETURN TO: City of Pasco Attn: City Planner 525 North 3d Pasco, WA 99301 ORDINANCE NO. AN ORDINANCE VACATING A PORTION OF WASHINGTON STREET. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may vacate right-of-way; and WHEREAS, all steps and procedures required by law to vacate said right-of-way have been duly taken and performed; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That all of Washington Avenue between the east right-of-way line of South 5`" Avenue and the BNSF railroad right-of-way, as depicted in Exhibit "1" be and the same is hereby vacated subject to the easement retained in Section 2 below. Section 2. That the City shall retain an easement and the right to exercise or grant easements with respect to the southern 45 feet of the right-of-way vacated in Section 1 above for the construction, repair and maintenance of public utilities and services. Section 3. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, this 15`" day of June, 2015. Matt Watkins Mayor ATTEST: Debra L. Clark, City Clerk APPROVED AS TO FORM: Leland B. Kerr, City Attorney Page 93 of 189 AGENDA REPORT FOR: City Council June 10, 2015 TO: Dave Zabell, City Manager Workshop Meeting: 6/15/15 FROM: Stan Strebel, Deputy City Manager SUBJECT: LTGO Bonds for Police Community Services Building I. REFERENCE(S): Proposed Ordinance Preliminary Official Statement Bond Summary Statistics II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Ordinance No. 4228, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $9,000,000 aggregate principal amount of limited tax general obligation bonds to provide funds to design, construct and equip a new police facility and other capital purposes, as deemed necessary and advisable by the City, and to pay the costs of issuance and sale of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters and, further, authorize publication by summary only. IH. FISCAL IMPACT: Estimated total project costs of $8.5 million. Debt service requirements can be met with the City's portion of the 3/1 Oths of one percent Public Safety Sales Tax approved by voters in 2011. IV. HISTORY AND FACTS BRIEF: The proposed LTGO bonds will finance the design, construction, equipment and furnishings for the Pasco Police Community Services Building plus anticipated expenditures for City information systems space and equipment to be housed in the building. Bonds are expected to be repaid over a 20 -year period. Council recently authorized the construction contract for the building in the amount of $7.148 million; construction is anticipated to be completed by early summer 2016. Page 95 of 189 The City has retained the services of a financial advisor to assist with decisions relating to the structuring and sale of the bonds. The City has also applied for a bond rating with Standard and Poor's which is expected to be beneficial to the City in time of sale and interest on the bonds. The proposed ordinance designates the City Manager as the City's Designated Representative to conduct the bond sale in the manner and upon the terms deemed most advantageous to the City. The ordinance provides the parameters within which the Designated Representative may act in Exhibit A, attached to the ordinance. The attachment provides some flexibility to the Designated Representative in making final sale decisions, in the event that conditions change prior to the actual date of the sale (anticipated to take place during the 4th week of June, with closing early in July). 1. While the total principal amount needed is anticipated to be $8.5 million, should estimates of the need change, the ordinance allows the Designated Representative to authorize up to $9 million in bonds. 2. While the current rate of interest is expected to be near 4%, the Exhibit sets an upper limit of 5.0%. 3. While it is expected to finance the repayment of the bonds over 20 years, the Exhibit provides for up to 21 years in the event that such proves advantageous to the City at the time of the sale. 4. The attached, proposed ordinance is the most current draft, it is possible that minor edits may be suggested for the final ordinance to be considered on June 15. V. DISCUSSION: Page 96 of 189 CITY OF PASCO, WASHINGTON ORDINANCE NO. 4228 AN ORDINANCE of the City of Pasco, Washington, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $9,000,000 aggregate principal amount of limited tax general obligation bonds to provide funds to design, construct and equip a new police facility and other capital purposes, as deemed necessary and advisable by the City, and to pay the costs of issuance and sale of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. Passed June 15, 2015 This document prepared by: Foster Pepper PLLC 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 (206) 447-4400 51398050.3 Page 97 of 189 Section I. Section 2 . Section 3 . Section 4 . Section 5 . Section 6. Section 7. Section 8 . Section 9. Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Exhibit A Exhibit B TABLE OF CONTENTS* Definitions....................................................................................... Findings and Determinations........................................................... Authorization of Bonds.................................................................... Description of Bonds; Appointment of Designated Representative Bond Registrar; Registration and Transfer of Bonds ...................... Form and Execution of Bonds......................................................... Paymentof Bonds............................................................................ Funds and Accounts; Deposit of Proceeds ...................................... Redemption Provisions and Purchase of Bonds .............................. FailureTo Pay Bonds....................................................................., Pledgeof Taxes............................................................................... TaxCovenants................................................................................ Refunding or Defeasance of the Bonds .......................................... Sale and Delivery of the Bonds ...................................................... C D' 1 Page Offictal Statement, onthmm�g tsc osure............................................. Supplemental and Amendatory Ordinances ........................................... General Authorization and Ratification.................................................. Severability............................................................................................. Effective Date of Ordinance................................................................... Parameters for Final Terms Form of Undertaking to Provide Continuing Disclosure ..6 ..............6 ..............7 ..............7 ..............8 ..............8 ..............9 ..............9 ............10 ............10 ............10 .............11 .............11 .............12 *The cover page, table of contents and section headings of this ordinance are for convenience of reference only, and shall not be used to resolve any question of interpretation of this ordinance. _1 51398030.3 Page 98 of 189 ................. l ......................4 ......................4 ......................5 5 Offictal Statement, onthmm�g tsc osure............................................. Supplemental and Amendatory Ordinances ........................................... General Authorization and Ratification.................................................. Severability............................................................................................. Effective Date of Ordinance................................................................... Parameters for Final Terms Form of Undertaking to Provide Continuing Disclosure ..6 ..............6 ..............7 ..............7 ..............8 ..............8 ..............9 ..............9 ............10 ............10 ............10 .............11 .............11 .............12 *The cover page, table of contents and section headings of this ordinance are for convenience of reference only, and shall not be used to resolve any question of interpretation of this ordinance. _1 51398030.3 Page 98 of 189 CITY OF PASCO, WASHINGTON ORDINANCE NO. 4228 AN ORDINANCE of the City of Pasco, Washington, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $9,000,000 aggregate principal amount of limited tax general obligation bonds to provide funds to design, construct and equip a new police facility and other capital purposes, as deemed necessary and advisable by the City, and to pay the costs of issuance and sale of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as follows: Section 1. Definitions. As used in this ordinance, the following capitalized terms shall have the following meanings: (a) "Authorized Denomination" means $5,000 or any integral multiple thereof within a maturity. (b) "Beneficial Owner" means, with respect to a Bond, the owner of any beneficial interest in that Bond. (c) "Bond" means each bond issued pursuant to and for the purposes provided in this ordinance. (d) "Bond Counsel' means the firm of Foster Pepper PLLC, its successor, or any other attorney or firm of attorneys selected by the City with a nationally recognized standing as bond counsel in the field of municipal finance. (e) "Bond Fund" means the Limited Tax General Obligation Bond Fund, 2015, of the City created for the payment of the principal of and interest on the Bonds. (f) "Bond Purchase Agreement" means an offer to purchase the Bonds setting forth certain terms and conditions of the issuance, sale and delivery of those Bonds, which offer is authorized to be accepted by the Designated Representative on behalf of the City, if consistent with this ordinance. (g) "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of each Bond. (h) "Bond Registrar" means the Fiscal Agent, or any successor bond registrar selected by the City. 513980503 4 -Page 99 of 189 (i) "City" means the City of Pasco, Washington, a municipal corporation duly organized and existing under the laws of the State. 0) "City Council" means the legislative authority of the City, as duly and regularly constituted from time to time. (k) "Code" means the United States Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. (1) "DTC" means The Depository Trust Company, New York, New York, or its nominee. (m) "Designated Representative" means the officer of the City appointed in Section 4 of this ordinance to serve as the City's designated representative in accordance with RCW 39.46.040(2). (n) "Final Terms" means the terms and conditions for the sale of the Bonds including the amount, date or dates, denominations, interest rate or rates (or mechanism for determining interest rate or rates), payment dates, final maturity, redemption rights, price, and other terms or covenants. (o) "Deputy Director" means the City's Deputy Director of Administrative and Community Services or such other officer of the City who succeeds to substantially all of the responsibilities of that office. (p) "Fiscal Agent" means the fiscal agent of the State, as the same may be designated by the State from time to time. (q) "Government Obligations" has the meaning given in RCW 39.53.010, as now in effect or as may hereafter be amended. (r) "Issue Date" means, with respect to a Bond, the date of initial issuance and delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond. (s) "Letter of Representations" means the Blanket Issuer Letter of Representations between the City and DTC, dated August 31, 1998, as it may be amended from time to time, and any successor or substitute letter relating to the operational procedures of the Securities Depository. (t) "MSRB" means the Municipal Securities Rulemaking Board. (u) "Oficial Statement" means an offering document, disclosure document, private placement memorandum or substantially similar disclosure document provided to purchasers and potential purchasers in connection with the initial offering of the Bonds in conformance with Rule 15c2-12 or other applicable regulations of the SEC. (v) "Owner" means, without distinction, the Registered Owner and the Beneficial 10717M 513990503 -2 Page 100 of 189 (w) "Project" means the design, construction and equipping of a new police facility located on property owned by the City adjacent to City Hall, and other capital purposes, as deemed necessary and advisable by the City. Incidental costs incurred in connection with carrying out and accomplishing the Project, consistent with RCW 39.46.070, may be included as costs of the Project. The Project includes acquisition, construction and installation of all necessary furniture, equipment, apparatus, accessories, fixtures and appurtenances. (x) "Project Account" means the Police Community Services Building Account of the City created for the purpose of carrying out the Project. (y) "Purchaser" means Piper Jaffray & Co. of Seattle, Washington, or such other purchaser of the Bonds whose offer is accepted by the Designated Representative in accordance with this ordinance. (z) "Rating Agency" means any nationally recognized rating agency then maintaining a rating on the Bonds at the request of the City. (aa) "Record Date" means the Bond Registrar's close of business on the 15th day of the month preceding an interest payment date. With respect to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar's close of business on the date on which the Bond Registrar sends the notice of redemption in accordance with Section 9. (bb) "Registered Owner" means, with respect to a Bond, the person in whose name that Bond is registered on the Bond Register. For so long as the City utilizes the book -entry only system for the Bonds under the Letter of Representations, Registered Owner shall mean the Securities Depository. (cc) "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. (dd) "SEC" means the United States Securities and Exchange Commission. (ee) "Securities Depository" means DTC, any successor thereto, any substitute securities depository selected by the City that is qualified under applicable laws and regulations to provide the services proposed to be provided by it, or the nominee of any of the foregoing. (ff) "State" means the State of Washington. (gg) "System of Registration" means the system of registration for the City's bonds and other obligations set forth in Ordinance No. 2845 of the City. (hh) "Term Bond" means each Bond designated as a Term Bond and subject to mandatory redemption in the years and amounts set forth in the Bond Purchase Agreement. (ii) "Undertaking" means the undertaking to provide continuing disclosure entered into pursuant to Section 15(c) of this ordinance. 3 51396050.3 Page 101 of 189 Section 2. Findings and Determinations. The City takes note of the following facts and makes the following findings and determinations: (a) Authority and Description of Project. The City is in need of a new police facility, and the City under State law has broad authority to acquire and construct facilities appropriate to the good government of the City. The City Council therefore finds that it is in the best interests of the City to carry out the Project. (b) Plan of Financing. Pursuant to applicable law, including without limitation chapters 39.36 and 39.46 RCW, the City is authorized to issue general obligation bonds for the purpose of financing the Project. The total expected cost of the Project is approximately $8,500,000, which is expected to be made up of proceeds of the Bonds. (c) Debt Capacity. The maximum amount of indebtedness authorized by this ordinance is $9,000,000. Based on the following facts, this amount is to be issued within the amount permitted to be issued by the City for general municipal purposes without a vote: (1) The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes for collection in the calendar year 2015 is $3,679,413,343. (2) As of December 31, 2014, the City has limited tax general obligation indebtedness, consisting of bonds, notes, leases and conditional sales contracts outstanding in the principal amount of $4,063,122, which is incurred within the limit of up to 1'h% of the value of the taxable property within the City permitted for general municipal purposes without a vote. (3) As of May 1, 2015, the City has unlimited tax general obligation indebtedness for capital purposes only outstanding in the principal amount of $500,000 for general municipal purposes. The indebtedness described in this paragraph has been incurred with the approval of the requisite proportion of the City's qualified voters at an election meeting the minimum turnout requirements, within the limit of up to 2%2% of the value of the taxable property within the City for general municipal purposes (when combined with the outstanding limited tax general obligation indebtedness), 2'/2% for utility purposes and 2'/2% for open space, parks and economic development purposes. (d) The Bonds. For the purpose of providing the funds necessary to carry out the Project and to pay the costs of issuance and sale of the Bonds, the City Council finds that it is in the best interests of the City and its taxpayers to issue and sell the Bonds to the Purchaser, pursuant to the terms set forth in the Bond Purchase Agreement as approved by the City's Designated Representative consistent with this ordinance. Section 3. Authorization of Bonds. The City is authorized to borrow money on the credit of the City and issue negotiable limited tax general obligation bonds evidencing indebtedness in the principal amount not to exceed $9,000,000 to provide funds necessary to carry out the Project and to pay the costs of issuance and sale of the Bonds. The proceeds of the 51399050.3 _4 Page 102 of 189 Bonds allocated to paying the cost of the Project shall be deposited as set forth in Section 8 of this ordinance and shall be used to carry out the Project, or a portion of the Project, in such order of time as the City determines is advisable and practicable. Section 4. Description of Bonds; Appointment of Designated Representative. The City Manager is appointed as the Designated Representative of the City and is authorized and directed to conduct the sale of the Bonds in the manner and upon the terms deemed most advantageous to the City, and to approve the Final Terms of the Bonds, with such additional terms and covenants as the Designated Representative deems advisable, within the parameters set forth in Exhibit A, which is attached to this ordinance and incorporated by this reference. Section 5. Bond Registrar; Registration and Transfer of Bonds. (a) Registration of Bonds; Bond Register. Each Bond shall be issued only in registered form as to both principal and interest and the ownership of each Bond shall be recorded on the Bond Register. The Bond Register shall contain the name and mailing address of each Registered Owner and the principal amount and number of each Bond held by each Registered Owner. (b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and the System of Registration. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on each Bond. The Bond Registrar may become an Owner with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Owners. (c) Transfer or Exchange. A Bond surrendered to the Bond Registrar may be exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same interest rate and maturity. A Bond may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be obligated to exchange any Bond or transfer registered ownership during the period between the applicable Record Date and the next upcoming interest payment or redemption date. (d) Securities Depository; Book -Entry Only Form. DTC is appointed as initial Securities Depository. Each Bond initially shall be registered in the name of Cede & Co., as the nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held fully immobilized in book -entry only form by the Securities Depository in accordance with the provisions of the Letter of Representations. Registered ownership of any Bond registered in the name of the Securities Depository may not be transferred except: (i) to any successor Securities Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any 51398050.3 -5 Page 103 of 189 person if the Bond is no longer to be held in book -entry only form. Upon the resignation of the Securities Depository, or upon a termination of the services of the Securities Depository by the City, the City may appoint a substitute Securities Depository. If (i) the Securities Depository resigns and the City does not appoint a substitute Securities Depository, or (ii) the City terminates the services of the Securities Depository, the Bonds no longer shall be held in book - entry only form and the registered ownership of each Bond may be transferred to any person as provided in this ordinance. Neither the City nor the Bond Registrar shall have any obligation to participants of any Securities Depository or the persons for whom they act as nominees regarding accuracy of any records maintained by the Securities Depository or its participants. Neither the City nor the Bond Registrar shall be responsible for any notice that is permitted or required to be given to a Registered Owner except such notice as is required to be given by the Bond Registrar to the Securities Depository. Section 6. Form and Execution of Bonds. (a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on its Issue Date. (b) Authentication. Only a Bond bearing a Certificate of Authentication in substantially the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate Of Authentication. This Bond is one of the fully registered City of Pasco, Washington, Limited Tax General Obligation Bonds, 2015, described in the Bond Ordinance." The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. Section 7. Payment of Bonds. Principal of and interest on each Bond shall be payable in lawful money of the United States of America. Principal of and interest on each Bond registered in the name of the Securities Depository is payable in the manner set forth in the Letter of Representations. Interest on each Bond not registered in the name of the Securities Depository is payable by electronic transfer on the interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment date to the Registered Owner at the address appearing on the Bond Register on the Record Date. However, the City is not required to make electronic transfers except pursuant to a request by a Registered Owner in writing received on or prior to the Record Date and at the sole expense of the Registered Owner. Principal of each 51398050.3 -6 Page 104 of 189 Bond not registered in the name of the Securities Depository is payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject to acceleration under any circumstances. Section 8. Funds and Accounts; Deposit of Proceeds. (a) Bond Fund. The Bond Fund is created as a special fund of the City for the sole purpose of paying principal of and interest on the Bonds. Accrued interest on the Bonds, if any, shall be deposited into the Bond Fund. All amounts allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund as necessary for the timely payment of amounts due with respect to the Bonds. The principal of and interest on the Bonds shall be paid out of the Bond Fund. Until needed for that purpose, the City may invest money in the Bond Fund temporarily in any legal investment, and the investment earnings shall be retained in the Bond Fund and used for the purposes of that fund. (b) Project Account. The Project Account has been previously created as an account of the City for the purpose of paying the costs of the Project. Proceeds received from the sale and delivery of the Bonds shall be deposited into the Project Account and used to pay the costs of the Project and costs of issuance of the Bonds. Until needed to pay such costs, the City may invest those proceeds temporarily in any legal investment, and the investment earnings shall be retained in the Project Account and used for the purposes of that fund, except that earnings subject to a federal tax or rebate requirement (if applicable) may be withdrawn from the Project Account and used for those tax or rebate purposes. Section 9. Redemption Provisions and Purchase of Bonds. (a) Optional Redemption. The Bonds shall be subject to redemption at the option of the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A. (b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A and except as set forth below, shall be called for redemption at a price equal to the stated principal amount to be redeemed, plus accrued interest, on the dates and in the amounts as set forth in the Bond Purchase Agreement. If a Term Bond is redeemed under the optional redemption provisions, defeased or purchased by the City and surrendered for cancellation, the principal amount of the Term Bond so redeemed, defeased or purchased (irrespective of its actual redemption or purchase price) shall be credited against one or more scheduled mandatory redemption installments for that Term Bond. The City shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest mandatory redemption date for that Term Bond for which notice of redemption has not already been given. (c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the outstanding Bonds are to be redeemed at the option of the City, the City shall select the maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity are to be redeemed, the Securities Depository shall select Bonds registered in the name of the Securities 51398050.3 -� 9 Pa e 105 of 189 Depository to be redeemed in accordance with the Letter of Representations, and the Bond Registrar shall select all other Bonds to be redeemed randomly in such manner as the Bond Registrar shall determine. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same maturity and interest rate in any Authorized Denomination in the aggregate principal amount to remain outstanding. (d) Notice of Redemption. Notice of redemption of each Bond registered in the name of the Securities Depository shall be given in accordance with the Letter of Representations. Notice of redemption of each other Bond, unless waived by the Registered Owner, shall be given by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Registered Owner at the address appearing on the Bond Register on the Record Date. The requirements of the preceding sentence shall be satisfied when notice has been mailed as so provided, whether or not it is actually received by an Owner. In addition, the redemption notice shall be mailed or sent electronically within the same period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and with such additional information as the Deputy Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of any Bond. (e) Rescission of Optional Redemption Notice. In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the redemption by giving a notice of rescission to the affected Registered Owners at any time on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded shall be of no effect, and each Bond for which a notice of redemption has been rescinded shall remain outstanding. (f) Effect of Redemption. Interest on each Bond called for redemption shall cease to accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond Fund or in a trust account established to refund or defease the Bond. (g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 10. Failure To Pay Bonds. If the principal of any Bond is not paid when the Bond is properly presented at its maturity or date fixed for redemption, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Registered Owner. Section 11. Pledge of Taxes. The Bonds constitute a general indebtedness of the City and are payable from tax revenues of the City and such other money as is lawfully available and 51398050.3 -o Page 106 of 189 pledged by the City for the payment of principal of and interest on the Bonds. For as long as any of the Bonds are outstanding, the City irrevocably pledges that it shall, in the manner provided by law within the constitutional and statutory limitations provided by law without the assent of the voters, include in its annual property tax levy amounts sufficient, together with other money that is lawfully available, to pay principal of and interest on the Bonds as the same become due. The full faith, credit and resources of the City are pledged irrevocably for the prompt payment of the principal of and interest on the Bonds and such pledge shall be enforceable in mandamus against the City. Section 12. Tax Covenants. (a) Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bonds. (b) Post -Issuance Compliance. The Deputy Director is authorized and directed to review and update the City's written procedures to facilitate compliance by the City with the covenants in this ordinance and the applicable requirements of the Code that must be satisfied after the Issue Date to prevent interest on the Bonds from being included in gross income for federal tax purposes. Section 13. Refunding_or Defeasance of the Bonds. The City may issue refunding bonds pursuant to State law or use money available from any other lawful source to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of and interest on any or all of the Bonds (the "defeased Bonds"); (b) redeeming the defeased Bonds prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust account"), money and/or Government Obligations maturing at a time or times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void. Thereafter, the Owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds shall be deemed no longer outstanding. In that event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose. Unless otherwise specified by the City in a refunding or defeasance plan, notice of refunding or defeasance shall be given, and selection of Bonds for any partial refunding or defeasance shall be conducted, in the manner prescribed in this ordinance for the redemption of Bonds. 51398050.3 -9-Page 107 of 189 Section 14. Sale and Delivery of the Bonds. (a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is authorized to sell the Bonds by negotiated sale to the Purchaser, based on the assessment of the Designated Representative of market conditions, in consultation with appropriate City officials and staff, Bond Counsel and other advisors. In accepting the Final Terms, the Designated Representative shall take into account those factors that, in the judgment of the Designated Representative, may be expected to result in the lowest true interest cost to the City. The Bond Purchase Agreement for the Bonds shall set forth the Final Terms. The Designated Representative is authorized to execute the Bond Purchase Agreement on behalf of the City, so long as the terms provided therein are consistent with the terms of this ordinance. (b) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at City expense and will be delivered to the Purchaser in accordance with the Bond Purchase Agreement, together with the approving legal opinion of Bond Counsel regarding the Bonds. Section 15. Official Statement; Continuing Disclosure. (a) Preliminary Official Statement Deemed Final. The Designated Representative shall review and, if acceptable to him or her, approve the preliminary Official Statement prepared in connection with the sale of the Bonds to the public. For the sole purpose of the Purchaser's compliance with paragraph (b)(1) of Rule 15c2-12, the Designated Representative is authorized to deem that preliminary Official Statement final as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers of the Bonds of a preliminary Official Statement that has been approved by the Designated Representative and been deemed final, if applicable, in accordance with this subsection. (b) Approval of Final Official Statement. The City approves the preparation of a final Official Statement for the Bonds to be sold to the public in the form of the preliminary Official Statement that has been approved and deemed final in accordance with subsection (a), with such modifications and amendments as the Designated Representative deems necessary or desirable, and further authorizes the Designated Representative to execute and deliver such final Official Statement to the Purchaser if required under Rule 15c2-12. The City authorizes and approves the distribution by the Purchaser of the final Official Statement so executed and delivered to purchasers and potential purchasers of the Bonds. (c) Undertaking to Provide Continuing Disclosure. If necessary to meet the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a participating underwriter for the Bonds, the Designated Representative is authorized to execute a written undertaking to provide continuing disclosure for the benefit of holders of the Bonds in substantially the form attached as Exhibit B. Section 16. Sunnlemental and Amendatory Ordinances. The City may supplement or amend this ordinance for any one or more of the following purposes without the consent of any Owners of the Bonds: 51398050.3 -10 Page 108 of 189 (a) To add covenants and agreements that do not materially adversely affect the interests of Owners, or to surrender any right or power reserved to or conferred upon the City. (b) To cure any ambiguities, or to cure, correct or supplement any defective provision contained in this ordinance in a manner that does not materially adversely affect the interest of the Beneficial Owners of the Bonds. Section 17. General Authorization and Ratification. The Designated Representative and other appropriate officers of the City are severally authorized to take such actions and to execute such documents as in their judgment may be necessary or desirable to carry out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of the Bonds to the Purchaser thereof and for the proper application, use and investment of the proceeds of the Bonds. All actions taken prior to the effective date of this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 18. Severability. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and void with respect to the particular person or circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. -11- 51398050.3 Page 109 of 189 Section 19. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by law. PASSED by the City Council and APPROVED by the Mayor of the City of Pasco, Washington, at a regular open public meeting thereof, this 15th day of June, 2015. Matt Watkins, Mayor ATTEST: Debra L. Clark, City Clerk APPROVED AS TO FORM: Foster Pepper PLLC Bond Counsel 12- 51396050.3 Page 110 Of 189 Exhibit A EXHIBIT A DESCRIPTION OF THE BONDS (a) Principal Amount. The Bonds may be issued in an amount not to exceed the aggregate principal amount of $9,000,000. (b) Date or Dates. Each Bond shall be dated its Issue Date, which date may not be later than one year after the effective date of this ordinance. (c) Denominations, Name, etc. The Bonds shall be issued in Authorized Denominations and shall be numbered separately in the manner and shall bear any name and additional designation as deemed necessary or appropriate by the Designated Representative. (d) Interest Rate(s). Each Bond shall bear interest at a fixed rate per annum (computed on the basis of a 360 -day year of twelve 30 - day months) from the Issue Date or from the most recent date for which interest has been paid or duly provided for, whichever is later. One or more rates of interest may be fixed for the Bonds. No rate of interest for any Bond may exceed 5.0%, and the true interest cost to the City for the Bonds may not exceed 5.0%. (e) Payment Dates. Interest shall be payable at fixed rates semiannually on dates acceptable to the Designated Representative, commencing no later than December 1, 2015. Principal payments shall commence on a date acceptable to the Designated Representative and shall be payable at maturity or in mandatory redemption installments annually thereafter, on dates acceptable to the Designated Representative. (f) Final Maturity. The Bonds shall mature no later than the date that is 21 years after the Issue Date. (g) Redemption Rights. The Designated Representative may approve in the Bond Purchase Agreement provisions for the optional and mandatory redemption of Bonds, subject to the following: (1) Optional Redemption. Any Bond may be designated as being (A) subject to redemption at the option of the City prior to its maturity date on the dates and at the prices set forth in the Bond Purchase Agreement; or (B) not subject to A-1 51398050.3 Page 111 of 189 redemption prior to its maturity date. If a Bond is subject to optional redemption prior to its maturity, it must be subject to such redemption on one or more dates occurring not more than 10'/z years after the Issue Date. (2) Mandatory Redemption. Any Bond may be designated as a Term Bond, subject to mandatory redemption prior to its maturity on the dates and in the amounts set forth in the Bond Purchase Agreement. (h) Price. The purchase price for the Bonds may not be less than 96% or more than 120% of the stated principal amount of the Bonds. (i) Other Terms and Conditions. (1) The Bonds may not be issued if it would cause the indebtedness of the City to exceed the City's legal debt capacity on the Issue Date. (2) The Designated Representative may determine whether it is in the City's best interest to provide for bond insurance or other credit enhancement; and may accept such additional terms, conditions and covenants as he or she may determine are in the best interests of the City, consistent with this ordinance. A-2 51398050.3 Page 112 of 189 Exhibit B [Form oil UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE City of Pasco, Washington Limited Tax General Obligation Bonds, 2015 The City of Pasco, Washington (the "City"), makes the following written Undertaking for the benefit of holders of the above -referenced bonds (the "Bonds"), for the sole purpose of assisting the Purchaser in meeting the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for the Bonds. Capitalized terms used but not defined below shall have the meanings given in Ordinance No. 4228 of the City (the "Bond Ordinance"). (a) Undertaking to Provide Annual Financial Information and Notice of Listed Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (i) Annual financial information and operating data of the type included in the final official statement for the Bonds and described in paragraph (b) ("annual financial information"); (ii) Timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 — TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) modifications to rights of holders of the Bonds, if material; (8) bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a successor or additional trustee or the change of name of a trustee, if material. (iii) Timely notice of a failure by the City to provide required annual financial information on or before the date specified in paragraph (b). 51398050.3 B-1 Page 113 of 189 (b) Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in paragraph (a): (i) Shall consist of (1) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles applicable to local governmental units of the State such as the City, as such principles may be changed from time to time, which statements may be unaudited, provided, that if and when audited financial statements are prepared and available to the City they will be provided; (2) principal amount of general obligation bonds outstanding at the end of the applicable fiscal year; (3) assessed valuation for that fiscal year; (4) property tax levy amounts and rates for that fiscal year; and (5) a statement of revenues for that fiscal year from any other revenue sources pledged to the Bonds; (ii) Shall be provided not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2014; and (iii) May be provided in a single or multiple documents, and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. (c) Amendment of Undertaking. This Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. (d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder of each Bond, and shall not inure to the benefit of or create any rights in any other person. (e) Termination of Undertaking. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely notice of such termination to the MSRB. (f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the City learns of any failure to comply with this Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with this Undertaking shall constitute a default in respect of the Bonds. The 51398050.3 B-2 Page 114 of 189 sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated person to comply with this Undertaking, including seeking an order of specific performance from an appropriate court. (g) Designation of Official Responsible to Administer Undertaking. The Deputy Director or his or her designee is the person designated, in accordance with the Bond Ordinance, to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the following actions: (i) Preparing and filing the annual financial information undertaken to be provided; (ii) Determining whether any event specified in paragraph (a) has occurred, assessing its materiality, where necessary, with respect to the Bonds, and preparing and disseminating any required notice of its occurrence; (iii) Determining whether any person other than the City is an "obligated person" within the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of listed events for that person required under Rule 15c2-12; (iv) Selecting, engaging and compensating designated agents and consultants, including financial advisors and legal counsel, to assist and advise the City in carrying out this Undertaking; and (v) Effecting any necessary amendment of this Undertaking. 51399050.3 B-3 Page 115 of 189 CERTIFICATION I, the undersigned, City Clerk of the City of Pasco, Washington (the "City"), hereby certify as follows: 1. The attached copy of Ordinance No. 4228 (the "Ordinance") is a full, true and correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the regular meeting place thereof on June 15, 2015, as that ordinance appears on the minute book of the City. 2. The Ordinance will be in full force and effect five days after publication in the City's official newspaper, which publication date is 12015. 5. A quorum of the members of the City Council was present throughout the meeting and a majority of the members voted in the proper manner for the passage of the Ordinance. Dated: 2015. CITY OF PASCO, WASHINGTON Debra L. Clark, City Clerk 5/3980503 Page 116 of 189 PRELIMINARY OFFICIAL STATEMENT DATED JUNE _, 2015 NEW ISSUE BOOK -ENTRY ONLY RATING REQUESTED: STANDARD & POOR'S In the opinion of Foster Pepper PLLC, Seattle, Washington (`Bond Counsel'), under existing federal law and assuming a mpkance with applicable requirementr of the Internal Revenue Code of 1986, as amended (the "Cod,'q, that must be satisfied subsequent to the issue date of the Bondy interest on the Bonds is excluded from gross income fn -federal income taxpurposes and is not an item of tax preference for purposes of the alternative minimum tax app&able to indioiduals. However, while interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax app&rable to corporations, interest on the Bonds received by corporations is taken into account in the computation of cu carted current eandngs far purposes of the alternative minimum tax applicable to corporation , interest on Bonds rereived by certain S corporations may be myea to tax, and interest on the Bonds received by foreign corporations with United States branches may be subject to a foreign brarrcb profits tax. Receipt of interest on the Bonds may bane otber federal tax consequences for wimn taxpayers. See the captions `Tax Exemption"and `Certain Other Federal Ta Consequences" herein. DATED: Date of Delivery CITY OF PASCO, WASHINGTON $7,730,000' Limited Tax General Obligation Bonds, 2015 DUE: December 1, as shown on inside cover The City of Pasco, Washington (the "City's Limited Tax General Obligation Bonds, 2015 (the `Bonds', will be issued in fully registered form and, when issued, will be registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company, New York, New York ("DTC'. DTC will act as securities depository for the Bonds. The Bonds will be initially issued in book -entry form only in the denomination of $5,000 or any integral multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased. The Bonds will bear interest payable on December 1, 2015 and semiannually thereafter on June 1 and December 1 of each year, to the maturity or early redemption of the Bonds. The principal of and interest on the Bonds are payable by the fiscal agency of the State of Washington, currently, U.S. Bank National Association, Seattle, Washington (the `Bond Registrar'). For so long as the Bonds remain in a "book -entry only" transfer system, the Bond Registrar will make such payments only to DTC, which will in tum remit such principal and interest to the DTC participants for subsequent disbursement to Beneficial Owners of the Bonds. See Appendix R--`'BOOK-ENTRY TRANSFER SYSTEM" hereto. MATURITY SCHEDULE - SEE INSIDE COVER The Bonds are subject to redemption prior to maturity. See "DESCRIPTION OF THE BONDS — Redemption Provisions" herein. The Bonds constitute a general indebtedness of the City and are payable from tax revenues of the City and such other money as is lawfully available and pledged by the City for the payment of principal of and interest on the Bonds. For as long as any of the Bonds are outstanding, the City has irrevocably pledged that it will, in the manner provided by law within the constitutional and statutory limitations provided by law without the assent of the voters, include in its annual property tax levy amounts sufficient, together with other money that is lawfully available, to pay principal of and interest on the Bonds as the same become due. The full faith, credit and resources of the City have been pledged irrevocably for the prompt payment of the principal of and interest on the Bonds, and such pledge is enforceable in mandamus against the City. See "DESCRIPTION OF THE BONDS—Security." The Bonds are offered for sale to Piper Jaffray & Co. (the "Undenvriter'� subject to the final approving legal opinion of Bond Counsel. The form of Bond Counsel's opinion is attached hereto as Appendix A. It is expected that the Bonds will be ready for delivery to the Bond Registrar on behalf of DTC by Fast Automated Securities Transfer, on or around July 14, 2015 (the "Date of Delivery"). Thu cover page contains certain information for quick reference on#. It is not a summary of tbu issue. Investors must read the entire Offrdal Statement to obtain information essential to the making of an infornud investment dedsion. * Preliminary, subfea to change. Piped affray Page 117 of 189 CITY OF PASCO, WASHINGTON $7,730,000' LIMITED TAX GENERAL OBLIGATION BONDS, 2015 MATURITY SCHEDULE Serial Maturities Due Interest CUSIP No. Dec. 1 Amount' Rate Yield Base 702554)(1) 2016 $260,000 2017 270,000 2018 280,000 2019 290,000 2020 305,000 2011 315,000 2022 330,000 2023 340,000 2024 355,000 2025 370,000 2026 385,000 2027 400,000 2028 415,000 2029 435,000 2030 450,000 2031 470,000 2032 485,000 2033 505,000 2034 525,000 2035 545,000 (1) The CUSIP data herein is provided by CUSIP Global Services, managed on behalf of the America Bankers Association by Standard & Poor's. The CUSIP numbers are not intended to create a database and do not serve in any way as a substitute for CUSIP service. CUSIP numbers have been assigned by an independent company not affiliated with the City and are provided solely for convenience and reference. The CUSIP numbers for a specific maturity are subject to change after the issuance of the Bonds. Neither the City nor the Underwriter takes any responsibility for the accuracy of the CUSIP numbers. *Ptehounag, -bjea to change. Page 118 of 189 This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. No dealer, broker, salesperson, or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in this Official Statement and, if given or made, such information or representations must not be relied upon. The City makes no representation regarding the accuracy or completeness of Bond Counsel's form of opinion, information related to the Underwriter or information provided by the Underwriter regarding the reoffering prices, or the information in Appendix B--`'Book-Entry Transfer System," which has been provided by DTC. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made by use of this Official Statement shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Certain statements contained in this Official Statement do not reflect historical facts, but are forecasts and "forward- looking statements." No assurance can be given that the future results discussed herein will be achieved, and actual results may differ materially from the forecasts described herein. In this respect, words such as "estimated," "projected," "anticipate," "expect," "intend," "plan," "believe" and similar expressions are intended to identify forward-looking statements. AD projections, assumptions and other forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth in this Official Statement. These forward-looking statements speak only as of the date they were prepared. The City specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of this Official Statement, except as otherwise expressly provided in "CONTINUING DISCLOSURE." The presentation of certain information, including tables of receipts from taxes and other revenues, is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City. No representation is made that past experience, as it might be shown by such financial and other information, will necessarily continue or be repeated in the future. Information relating to debt and tax limitations is based on existing statutes and constitutional provisions. Changes in State law could also alter these provisions. The order and placement of materials in this Official Statement, including the appendices, are not to be deemed to be a determination of relevance, materiality or importance, and this Official Statement, including the appendices, must be considered in its entirety. The offering of the Bonds is made only by means of this entire Official Statement. The Bonds have not been registered under the Securities Act of 1933, as amended, and the Bond Ordinance has not been qualified =der the Trust Indenture Act of 1939, as amended, in reliance upon exemptions contained in such acts. The registration or qualification of the Bonds in accordance with applicable provisions of securities laws of the state in which the Bonds have been registered or qualified and the exemption from the registration or qualification in other states cannot be regarded as a recommendation thereof. Neither these states nor any of their agencies have passed upon the merits of the Bonds or the accuracy or completeness of this Official Statement. Any representation to the contrary may be a criminal offense. The connection with this offering, the Underwriter pay over -allot or effect transactions that stabilize or maintain the market price of the Bonds at levels above those which might otherwise prevail in the open market. Such stabilization, if commenced, may be discontinued at any time without prior notice to any person. This Preliminary Official Statement, as of its date, is in a form deemed final by the City for purposes of Securities and Exchange Commission Rule 150-12(b)(1) but is subject to revision, amendment, and completion in a final Official Statement which will be available within seven business days after the sale date. Page 119 of 189 Members Matt Watkins Rebecca Francik Robert Hoffmann Michael Garrison Saul Martinez Tom Larsen Al Yenney Dave Zabell Stan Strebel Rick Terway Eva Lindgren CITY OF PASCO, WASHINGTON 525 NORTH THIRD AVENUE P.O. Box 293 PASCO, WA 99301 (509)545-3404 www.pasco-wa.gov* ELECTED OFFICIALS Position Mayor Mayor Pro -Tem Council Member Council Member Council Member Council Member Council Member CITY ADMINISTRATIVE STAFF Term Expires December 31, 2015 December 31, 2015 December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2015 City Manager Deputy City Manager Administrative and Community Services Director Administrative and Community Services Deputy Director BOND REGISTRAR AND PAYING AGENT U.S. Bank National Association Seattle, Washington BOND COUNSEL Foster Pepper PLLC Seattle, Washington FINANCIAL ADVISOR A. Dashen & Associates Bellevue, Washington UNDERWRITER Piper Jaffray & Co. Portland, Washington * The City s website is not part of ibis Offdal Statement, and invertors should not rely on information which is presented in the City's website in determining whether to purchase the Bands. This inactive textual refetrnce to the City's website is not a hyperk'nk and doer not incorporate the City s website by eefetence. Page 120 of 189 TABLE OF CONTENTS Page INTRODUCTION.......................................................................1 DESCRIPTION OF THE BONDS........................................1 Authorization of Bonds...............................................................1 Principal Amounts, Dates, Interest Rates, and Maturities .....1 Bond Registrar and Registration Features................................1 Redemption Provisions and Purchase of Bonds ......................2 Failure to Pay Bonds....................................................................3 Refunding or Defeasance............................................................3 PURPOSE AND USE OF BOND PROCEEDS..................4 Purpose...........................................................................................4 Sources and Uses of Bond Proceeds..........................................4 SECURITY FOR THE BONDS BONDED INDEBTEDNESS...................................................5 Authorizationof Debt..................................................................5 Limitations on Indebtedness........................................................5 Bonded Debt and Other Outstanding Obligations..................6 Debt Capacity Computation........................................................6 Limited Tax General Obligation Debt Service .........................7 Unlimited Tax General Obligation Debt Service .....................7 Net Direct and Overlapping Debt..............................................8 Bonded Debt Ratios......................................................................8 DebtPayment Record...................................................................8 Future Financings..........................................................................8 TAXING AUTHORITY...............................................................9 Authorized Property Tax Levies.................................................9 Property Taxes and Limitations...................................................9 Regular Property Tax Limitations.............................................10 Overlapping Taxing Districts.....................................................11 Assessed Valuation Determination ........................................... 12 Property Tax Collection Procedure..........................................12 Collection Record.......................................................................12 Largest Taxpayers........................................................................13 Collection of Other Taxes..........................................................13 FINANCIAL INFORMATION..............................................15 Statement of Revenues, Expenditures and Changes in Fund Balances...................................................................15 General Fund Budget Summary................................................16 Page CITYPROFILE.........................................................................17 CityCouncil ...............................................................................17 Key Administrative Personnel.................................................17 LaborRelations.........................................................................18 Pensions.....................................................................................18 Other Post Employment Benefits..........................................20 Risk Management......................................................................21 Accounting and Budgeting Policies........................................21 Auditing of City Finances........................................................22 Authorized Investments..........................................................22 GENERAL AND ECONOMIC INFORMATION .......23 Population...................................................................................23 Largest Employers....................................................................23 EconomicData.........................................................................24 TAXEXEMPTION..................................................................26 Certain Other Federal Tax Consequences ............................26 Preservation of Tax Exemption.............................................27 RATING.......................................................................................27 CONTINUING DISCLOSURE............................................27 CERTAIN INVESTMENT CONSIDERATIONS ........28 INITIATIVE AND REFERENDUM.................................29 LEGAL AND UNDERWRITING........................................29 Approval of Counsel................................................................29 Financial Advisor......................................................................29 Litigation....................................................................................30 Underwriting...............................................................................30 Conflictsof Interest.................................................................30 CONCLUDING STATEMENT APPENDIX A - FORM OF LEGAL OPINION APPENDIX B - BOOK -ENTRY TRANSFER SYSTEM APPENDIX C - 2013 AUDITED FINANCIAL STATEMENTS -iv- Page 121 of 189 OFFICIAL STATEMENT CITY OF PASCO, WASHINGTON $7,730,000* Limited Tax General Obligation Bonds, 2015 INTRODUCTION The City of Pasco, Washington (the "City"), a municipal corporation duly organized and existing under and by virtue of the laws of the State of Washington (the "State', furnishes this Official Statement in connection with the offering of $7,730,000 principal amount of Limited Tax General Obligation Bonds, 2015 (the `Bonds'. This Official Statement provides information concerning the City and the Bonds. All of the summaries of provisions of the Constitution and laws of the State, of ordinances and resolutions of the City, and of other documents contained herein are subject to the complete provisions thereof and do not purport to be complete statements of such laws or documents, copies of which may be obtained from the City upon request A full review should be made of the entire Official Statement. The offering of the Bonds to prospective investors is made only by means of the entire Official Statement. DESCRIPTION OF THE BONDS Authorization of Bonds The Bonds are issued in accordance with the provisions of the Constitution and chapters 39.36 and 39.46 of the Revised Code of Washington and other applicable statutes of the State, and pursuant to Ordinance No. 4228 (the "Bond Ordinance's of the City Council, passed on June 15, 2015. Principal Amounts, Dates, Interest Rates, and Maturities The Bonds are dated and bear interest from their date of initial delivery to the Underwriter. The Bonds mature on the dates and in the principal amounts as set forth on the inside cover of this Official Statement. The Bonds will bear interest payable semiannually, on each June I and December 1, commencing December 1, 2015, at the rates set forth on the inside cover of this Official Statement. Interest on the Bonds will be computed on the basis of a 360 -day year of twelve 30 -day months. Bond Registrar and Registration Features Bond Registrar. The State's fiscal agent, currently U.S. Bank National Association (the `Bond Registrar'), will authenticate the Bonds and act as the paying agent and registrar for the purpose of paying the principal of and interest on the Bonds, recording the purchase and registration, exchange or transfer, and payment of Bonds and performing the other respective obligations of the paying agent and registrar. No resignation or removal of the Bond Registrar shall become effective until a successor has been appointed and has accepted the duties of Bond Registrar. Book -Entry System. The Bonds will be issued as fully registered bonds and, when issued, will be initially registered in the name of Cede & Co., as the nominee of DTC. DTC will act as initial securities depository for the Bonds. Individual purchases and sales of the Bonds may be made in book -entry form only in denominations of $5,000 or integral multiples thereof within a maturity ("Authorized Denominations'). So long as the Bonds are in book -entry only form, principal of and interest on the Bonds will be payable as required by the operational arrangements of DTC referenced in the Blanket Issuer Letter of Representations between the City and DTC, dated August 31, 1998, (the "Letter of Representations'). The Beneficial Owners will not receive certificates representing their interest in the Bonds (see Appendix B attached hereto). The City makes no representation as to the accuracy or completeness of the information in Appendix B provided by DTC. Purchasers of the Bonds should confirm this information with DTC or its broker-dealer participants. * Reh--q, mbjat to rbang,. -1- Page 122 of 189 No Book -Entry System. During any period in which the Bonds are not in book -entry only form, principal of and interest on the Bonds will be payable by the Bond Registrar. Interest on the Bonds will be payable by check mailed to the Registered Owners, at the addresses appearing on the Bond Register on the 15" day of the month preceding an interest payment date or by electronic transfer on the interest payment date. The City is not required to make electronic transfers except to a Registered Owner of the Bonds pursuant to a request in writing (and at the sole expense of that Registered Owner) received at least 15 days before an interest payment date. Principal of the Bonds will be payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. Pmcedutv in the Event of Revisions of Book -Entry System.0 If (i) DTC resigns as the securities depository and the City does not appoint a substitute securities depository, or (ii) the City terminates the services of DTC, the City will execute, authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully registered form, in Authorized Denominations. Transfer and Exchange of Bonds. The Bonds will be subject to transfer and exchange as provided in the Bond Ordinance. Redemption Provisions and Purchase of Bonds Optional Redemption. The Bonds maturing on or after December 1, 20_ are subject to redemption prior to their stated maturity dates, at the option of the City, at any time on or after 1, 20_, as a whole or in part at par plus accrued interest to the date fixed for redemption. (Mandatory Redemption. The Bonds maturing on December 1, 20_ are term bonds (the "Term Bonds', and, if not optionally redeemed or purchased, will be called for redemption at a price equal to the principal amount to be redeemed plus accrued interest, if any, to the date fixed for redemption on December 1 in the years and principal amount as follows: Term Bonds Redemption Date Principal Redemption Date Principal (December 1) Amount (December 1) Amount (1) (1) Final manuity.] Selection ofBondr for Redemption.(] If fewer than all of the outstanding Bonds are to be redeemed at the option of the City, the City will select the maturities to be redeemed. For as long as the Bonds are in book -entry only form, if fewer than all of the Bonds of a maturity are called for redemption, the selection of Bonds within a maturity to be redeemed will be made by DTC in accordance with its operational procedures then in effect See Appendix B attached hereto. If the Bonds are no longer held in book -entry only form, then the Bond Registrar would select Bonds for redemption randomly within a maturity in such manner as the Bond Registrar determines. Partial Redemption. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there will be issued to the person in whose name a Bond is registered (the "Registered Owner'), without charge a new Bond (or Bonds, at the option of the Registered Owner) of the same maturity and interest rate in any Authorized Denomination in the aggregate principal amount remaining unredeemed. Notice of Redemption (Book-Entry).11 So long as the Bonds are in book -entry only form, notice of any redemption of Bonds will be given as required by the Letter of Representations. Notice of Redemption (No Book-Entry).O During any period in which the Bonds are not in book -entry only form, unless waived by any Registered Owner of the Bonds to be redeemed, official notice of any redemption of Bonds will be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by fust class mail, postage prepaid, at least 20 days and not more than 60 days prior to the date fixed for redemption, to the Registered Owners of the Bonds to be redeemed at the address shown on the books or records maintained by 2 Page 123 of 189 the Bond Registrar for the purpose of identifying ownership of the Bonds (the "Bond Register' on the date the Bond Registrar sends the notice, and such requirement will be satisfied when notice has been mailed as so provided, whether or not it is actually received by the Registered Owner or Beneficial Owner. Conditional Notice of Redemption.11 In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the redemption by giving a notice of rescission to the affected Registered Owners at any time on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded will be of no effect, and each Bond for which a notice of redemption has been rescinded will remain outstanding. Effect of Redemption. Interest on each Bond called for redemption will cease to accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded, or money sufficient to effect such redemption is not on deposit in the City's Limited Tax General Obligation Bond Fund 2015 (the `Bond Fund' or in a trust account established to refund or defease the Bond. Purchase of Bonds. The City has reserved the right to purchase any or all of the Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to the date of purchase. Failure to Pay Bonds If the principal of any Bond is not paid when the Bond is properly presented at its maturity or date fixed for redemption, as applicable, the City will be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Registered Owner. Refunding or Defeasance The City may issue refunding bonds pursuant to State law or use money available from any other lawful source to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of and interest on any or all of the Bonds (the "defeased Bonds'; (b) redeeming the defeased Bonds prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust account") money and/or "government obligations" (as defined by chapter 39.53 RCW, as now in effect or hereafter amended) maturing at a time or times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the owners of the defeased Bonds in the covenants of the Bond Ordinance and in the funds and accounts obligated to the payment of the defeased Bonds will cease and become void. Thereafter, the owners of defeased Bonds will have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds will be deemed no longer outstanding. In that event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose. Unless otherwise specified by the City in a refunding or defeasance plan, notice of refunding or defeasance will be given, and selection of Bonds for any partial refunding or defeasance will be conducted, in the manner prescribed in the Bond Ordinance for the redemption of Bonds. As currently defined in RCW 39.53.010(4), "government obligations" means (a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America and bank certificates of deposit secured by such obligations; (b) bonds, debentures, notes, participation certificates or other obligations issued by the Banks for Cooperatives, the Federal Intermediate Credit Bank, the Federal Home Loan Bank System, the Export -Import Bank of the United States, federal land banks or the Federal National Mortgage Association, (c) public housing bonds and project notes fully secured by contracts with the United States; and (d) obligations of financial institutions insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, to the extent insured or guaranteed as permitted under any other provision of State law. -3- Page 124 of 189 PURPOSE AND USE OF BOND PROCEEDS Purpose The Bonds are being issued to provide funds to pay the costs of designing, constructing and equipping a new police facility located on property owned by the City adjacent to City Hall and other capital purposes deemed necessary and advisable by the City, and to pay the costs of issuance and sale of the Bonds. Sources and Uses of Bond Proceeds Proceeds of the Bonds are to be applied as follows: Sources of Funds Principal Amount of the Bonds $ Original Issue Premium/Discount Total Sources of Funds $ Uses of Funds Deposit to Project Account $ Costs of Issuance It) Total Uses of Funds $ (1) Includes legal fees, rating agency fees, printing costs, and other costs associated with the issuance of the Bonds. SECURITY FOR THE BONDS The Bonds constitute a general indebtedness of the City and are payable from tax revenues of the City and such other money as is lawfully available and pledged by the City for the payment of principal of and interest on the Bonds. For as long as any of the Bonds are outstanding, the City has irrevocably pledged that it will, in the manner provided by law within the constitutional and statutory limitations provided by law without the assent of the voters, include in its annual property tax levy amounts sufficient, together with other money that is lawfully available, to pay principal of and interest on the Bonds as the same become due. The full faith, credit and resources of the City have been pledged irrevocably for the prompt payment of the principal of and interest on the Bonds, and such pledge is enforceable in mandamus against the City. The City may, subject to applicable laws, apply other funds available to make payments with respect to the Bonds. The Bonds do not constitute a debt or indebtedness of the State or any political subdivision thereof other than the City and are not payable from any proprietary or enterprise fund of the City (including the City's utilities). The Bonds are not secured by any lien or any other security interest in City property. The Bonds are not subject to acceleration upon the occurrence of a default. The City therefore would be liable only for principal and interest payments as they become due. In the event of multiple defaults in payment of principal of or interest on the Bonds, the Registered Owner of each Bond would be required to bring a separate action for each such payment not made. This could give rise to a difference in interests between Registered Owners of earlier and later maturing Bonds. State law provides that the payment of general obligation bonds shall be enforceable in mandamus against the issuer. There is no express provision in the State Constitution or statutes on the priority of payment of debt service on general obligations incurred by a Washington municipality. Additionally, certain taxes and other money deposited in the City's governmental funds are restricted by State law to specific purposes and may not be available to pay debt service on the Bonds. The rights and remedies of anyone seeking enforcement of the Bonds are subject to laws of bankruptcy and insolvency and to other laws affecting the rights and remedies of creditors and to the exercise of judicial discretion. See "CERTAIN INVESTMENT CONSIDERATIONS—Limitations on Remedies." 4- Page 125 of 189 BONDED Authorization of Debt The power of the City to incur debt of any kind is controlled and limited by State law. All debt must be incurred in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur liabilities in excess of budgetary appropriations. In an emergency, the City Council may put a plan into effect and authorize indebtedness outside the current budget. All expenditures for emergency purposes must be paid by checks from any available money in the fund properly chargeable with such expenditures. Limitations on Indebtedness The State Constitution and statutes limit the City's ability to incur general obligation indebtedness based on a percentage of the assessed value of the taxable property within the City at the time the indebtedness is incurred. See "TAXING AUTHORITY —Assessed Value." Non -Voted Debt. The Bonds are issued as non -voted debt. State law provides that the City may, without voter approval, incur general obligation debt in an amount not to exceed 1.5% of the assessed value of all taxable property within the City. The amount of non -voted debt plus the outstanding voter -approved debt for general municipal purposes also is subject to the aggregate debt limitation described below. Non -voted general obligation debt may be issued as follows: (1) pursuant to an ordinance specifying the amount and object of the expenditure of the proceeds, the City may borrow money for corporate purposes and issue bonds or notes within the constitutional and statutory limitations on indebtedness; (2) the City may execute conditional sales contracts for the purchase of real or personal property; and (3) the City may execute financing leases with or without an option to purchase. Voter Approved Debt. Subject to 60% voter approval meeting minimum voter turnout requirements, the City may incur general obligation debt in an amount not to exceed 2.5% of assessed value for general municipal purposes (when combined with any outstanding non voted debt), 2.5% for certain utility purposes, and 2.5% for certain parks, open space, and economic development purposes. The minimum turnout must be at least 40% of City voters who voted at the last preceding State general election. If the ballot proposition approving the issuance of voter -approved debt also approved the levy of taxes without limitation in amounts sufficient to repay those voter - approved bonds, then the bonds will be payable from a special excess tax levy. See "TAXING AUTHORITY— Property Taxes and Limitations." Aggregate Debt I nutations. The combination of voter -approved and non -voted general obligation debt for "general" municipal purposes may not exceed 2.5% of assessed value. The total of all general obligation debt for all purposes may not exceed 7.5% of the City's assessed value. Short -Term Obligations. Within the limitations described above, State law permits municipal corporations to borrow money and issue short-term obligations for any lawful purpose and in anticipation of the receipt of revenues, taxes, grants or the sale of bonds, if the bonds have been authorized by the governing body or the voters, as applicable. Short-term obligations issued in anticipation of taxes must be repaid within six months after the end of the fiscal year in which they are issued. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] -5- Page 126 of 189 Bonded Debt and Other Outstanding Obligations Debt Capacity Computation The City may incur general obligation debt only if, at the time debt is incurred, the City has sufficient debt capacity. Once the debt has been incurred, changes in assessed value have no effect on the validity of outstanding debt or the City's ability to refund outstanding debt. Declines in assessed value can limit the ability to incur additional general obligation debt. The following information shows the assessed value of property within the City and the outstanding general obligation debt of the City. GENERAL OBLIGATION DEBT CAPACITY (As of July 14, 2015) Assessed Valuation for 2015 Tax Collections Non -Voted Debt C60aaty (1 r/2 % ofA.rterred Value) Less: Non -Voted Bonds Outstanding (1) Less: Other Non -Voted Obligations Outstanding (2> Less: the Bonds * Remaining Non -Voted Debt Capacity Voted and Non -Voted Debt Ca paa&.- (2V2% ofA.rrerred Value) Less: Voted Bonds Outstanding (3) Less: Non -Voted Bonds Outstanding (t) Less: Other Non -Voted Obligations Outstanding (2) Less: the Bonds * Remaining Voted and Non -Voted Debt Capacity $3,679,413,343 $55,191,200 (2,815,000) (76,696) (7,730,000) $44,569,504 $91,985,334 (500,000) (2,815,000) (76,696) (7,730,000) $80,863,638 (1) Includes the City's Lunited Tar General Obligation Refunding Bonds, Series 2011. (2) Includes the City's portion of a Port of Pasco Airport Fire Building Loan (PPAFB Loan') and State Local Option Capital Asset Lending Program Loans ("State LOCAL Loan'). (3) Includes the City's Unlimited Tax General Obligation Bonds, Series 1999. * Preliminary, tnbjett to change sourrc City ofPWO -6- Page 127 of 189 Amount Outstanding Dated Maturity Amount as of General Obligation Debt - Non -Voted and Voted Date Date Issued 07/14/15 Non -Voted LTGO Bonds - LTGO Refunding Bonds, Series 2011 09/15/11 12/01/20 $4,110,000 $2,815,000 LTGO Bonds, Series 2015* 07/14/15 12/01/35 7,980,000 7,730,000 Total LTGO Bonds $12,090,000 $10,545,000 Other Non -Voted LTGO Obligations - 2001 State LOCAL - Animal Control Facility Land 11/01/01 12/01/16 $275,500 $58,948 2006 Port Airport Fire Building 07/12/06 07/12/16 120,000 17,748 Total Other Non -Voted Obligations $395,500 $76,696 Voted UTGO Bonds - UTGO Bonds, Series 1999 10/01/99 12/01/19 $1,700,000 $500,000 Total UTGO Bonds $1,700,000 $500,000 Total Outstanding General Obligation Debt $14,185,500 $11,121,696 * Prek'--g, mbjea to ebange. Debt Capacity Computation The City may incur general obligation debt only if, at the time debt is incurred, the City has sufficient debt capacity. Once the debt has been incurred, changes in assessed value have no effect on the validity of outstanding debt or the City's ability to refund outstanding debt. Declines in assessed value can limit the ability to incur additional general obligation debt. The following information shows the assessed value of property within the City and the outstanding general obligation debt of the City. GENERAL OBLIGATION DEBT CAPACITY (As of July 14, 2015) Assessed Valuation for 2015 Tax Collections Non -Voted Debt C60aaty (1 r/2 % ofA.rterred Value) Less: Non -Voted Bonds Outstanding (1) Less: Other Non -Voted Obligations Outstanding (2> Less: the Bonds * Remaining Non -Voted Debt Capacity Voted and Non -Voted Debt Ca paa&.- (2V2% ofA.rrerred Value) Less: Voted Bonds Outstanding (3) Less: Non -Voted Bonds Outstanding (t) Less: Other Non -Voted Obligations Outstanding (2) Less: the Bonds * Remaining Voted and Non -Voted Debt Capacity $3,679,413,343 $55,191,200 (2,815,000) (76,696) (7,730,000) $44,569,504 $91,985,334 (500,000) (2,815,000) (76,696) (7,730,000) $80,863,638 (1) Includes the City's Lunited Tar General Obligation Refunding Bonds, Series 2011. (2) Includes the City's portion of a Port of Pasco Airport Fire Building Loan (PPAFB Loan') and State Local Option Capital Asset Lending Program Loans ("State LOCAL Loan'). (3) Includes the City's Unlimited Tax General Obligation Bonds, Series 1999. * Preliminary, tnbjett to change sourrc City ofPWO -6- Page 127 of 189 Limited Tax General Obligation Debt Service (1) Does not include the outstanding PPAFB loan and outstanding State LOCAL loan (2) Preliminary, subject to change; assumes interest rates range from 0.68% to 3.10% Unlimited Tax General Obligation Debt Service Outstanding LTGO Bonds The Bonds Total Year Principal Interest Debt Service Total Year Principal Interest Principal Interest Debt Service 2015 $430,000 $103,850 16,800 $117,668 $651,518 2016 445,000 90,950 $260,000 309,200 1,105,150 2017 460,000 77,600 270,000 298,800 1,106,400 2018 475,000 59,200 280,000 288,000 1,102,200 2019 495,000 40,200 290,000 276,800 1,102,000 2020 510,000 20,400 305,000 265,200 1,100,600 2021 - - 315,000 253,000 568,000 2022 - - 330,000 240,400 570,400 2023 - - 340,000 227,200 567,200 2024 - - 355,000 213,600 568,600 2025 - - 370,000 199,400 569,400 2026 - - 385,000 184,600 569,600 2027 - - 400,000 169,200 569,200 2028 - - 415,000 153,200 568,200 2029 - - 435,000 136,600 571,600 2030 - - 450,000 119,200 569,200 2031 - - 470,000 101,200 571,200 2032 - - 485,000 82,400 567,400 2033 - - 505,000 63,000 568,000 2034 - - 525,000 42,800 567,800 2035 - - 545,000 21,800 566,800 $2,815,000 $392,200 $7,730,000 $3,763,268 $14,700,468 (1) Does not include the outstanding PPAFB loan and outstanding State LOCAL loan (2) Preliminary, subject to change; assumes interest rates range from 0.68% to 3.10% Unlimited Tax General Obligation Debt Service [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 7- Page 128 of 189 Outstanding UTGO Bonds Total Year Principal Interest Debt Service 2015 $100,000 $27,750 $127,750 2016 100,000 22,300 122,300 2017 100,000 16,800 116,800 2018 100,000 11,200 111,200 2019 100,000 5,600 105,600 $500,000 $83,650 $583,650 [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 7- Page 128 of 189 Net Direct and Overlapping Debt The following tables show the outstanding principal amount of general obligation debt incurred by the City ("Direct Debt's and the estimated allocable share of the outstanding principal amount of general obligation bonds of other taxing districts whose boundaries overlap a part or all of the City ('Overlapping Debt'. The estimated allocable share of Overlapping Debt is calculated based on a percentage of the overlapping taxing district's assessed value that lies within the boundaries of the City. The tables below are adjusted to reflect the issuance of the Bonds where indicated. The City has obtained the information regarding the Overlapping Debt from the overlapping taxing districts and Franklin County (the "County') and other sources the City believes to be reliable, but has not independently verified the accuracy or completeness of such information. The amounts described below show general obligation bonds issued by the various taxing districts and may not reflect certain leases or other contracts that may constitute indebtedness under State law. The tables below do not reflect any special revenue obligations (e.g., utility revenue bonds) issued by any taxing district. The taxing districts listed below may have issued additional general obligation debt since the dates indicated below and may have plans to issue future general obligation debt. Direct Debt (as of July 14, 2015) Non -Voted General Obligation Bonds Outstanding 0) $10,621,696 Voted General Obligation Bonds Outstanding 500,000 Net Direct Debt $11,121,696 Overlapping Debt gune 1, 2015) Petcent Principal Balance Net 2015 of of G.O. Debt Overlapping Assessed Value Overlap(2) Outstanding Debt Franklin County $6,077,967,248 53.77% $30,130,000 $16,200,901 Pasco School District No. 1 4,944,378,712 63.75 148,143,723 94,441,623 Port of Pasco 5,999,449,471 53.97 6,710,000 3,621,387 Total Overlapping Debt $114,263,911 Total Direct and Overlapping Debt $125,385,607 (1) Preliminary; subject to change. (2) Represents the percentage of each taxing district's assessed value within the City. Source: Fmnkfin Como Turas mr'r 01m and EMMA, a.mnam oflke Mmopal Senwnfter Rulemaking Baard Bonded Debt Ratios (1) Assessed Valuation for 2015 Tax Collections $3,679,413,343 2014 City Population 67,700 Direct Debt as a Percentage of Assessed Valuation 0.30% Direct & Overlapping Debt as a Percentage of Assessed Valuation 3.41% Per Capita Assessed Valuation $54,349 Per Capita Direct Debt $164 Per Capita Direct & Estimated Overlapping Debt $1,852 (1) Preli ni ; subject to change Debt Payment Record The City has promptly met all debt service payments on outstanding obligations. Additionally, no refunding bonds have been issued to prevent an impending default. Future Financings Other than the Bonds, the City has no authorized but unissued general obligation bonds, nor does it anticipate issuing additional long-term general obligation debt within the next 12 months. The City anticipates issuing water and sewer revenue bonds within the next 12 months, but the date and amount of issuance are not known at this time. -8- Page 129 of 189 TAXING AUTHORITY Below are general descriptions of the City's taxing authority and relevant statutory and constitutional limitations and descriptions of tax revenues other than property taxes. The City is authorized to levy regular property tax levies and excess property tax levies, and to impose various other taxes described below. See "Property Taxes and Limitations" and "Collection of Other Taxes." In some cases, State law specifies the purposes for which various taxes can be used. The City's major sources of governmental fund tax revenue are its regular property tax levy, sales and use taxes, and utility taxes. Neither the State nor any municipal corporation collects a tax on net income. Authorized Property Tax Levies For general city purposes, a city may levy regular property taxes up to $3.375/$1,000 of assessed value. The maximum levy rate for a city that is annexed into a library district or a fire protection district is $3.60/$1,000, less the levy rates imposed by those districts (up to a maximum of $1.50/$1,000 for a fire protection district and $0.50/$1000 for a library district). For 2015, the City's regular levy rate is $1.9563/$1,000 on all taxable property within the City. Cities are also permitted to impose certain additional levies for specific purposes, each of which is subject to its own statutory limitations. Examples of these include a levy for a firefighter pension fund (which may be used for general municipal purposes if not needed for the pension fund), for the maintenance of a local improvement guaranty fund and a voter -approved levy for emergency medical services. For the purpose of maintaining a local improvement guaranty fund (the "guaranty fund', a city or town is required to provide for the levy of a sum sufficient to pay warrants or obligations issued against the guaranty fund during the prior fiscal year and not paid by other revenue sources of the guaranty fund. The levy must not exceed the greater of (i) 12 percent of the outstanding obligations guaranteed by the guaranty fund, or (ii) the total amount of delinquent assessments and interest accumulated on the delinquent assessments. The taxes levied for the maintenance of the guaranty fund will be in addition to and, if need be, in excess of all statutory and charter limitations applicable to tax levies in any city or town. The City's Local Improvement District No. 145 has assessments currently outstanding in the amount of $135,165. The following table shows the City's property tax levy rates and dollar amounts levied since 2011. AD YALOREMTAX LEVIES (Dollars per $1,000 of Assessed Value) Collection Levy Rates Levy Amounts Year Regular Bond Total Regular Bond Total 2015 $1.945632 $0.042010 $1.987642 $7,158,785 $127,750 $7,286,535 2014 1.956301 0.045243 2.001544 6,931,249 133,150 7,064,399 2013 1.967327 0.197397 2.164724 6,492,512 518,099 7,010,611 2012 1.968362 0.203188 2.171550 6,327,851 522,400 6,850,251 2011 1.971575 0.211860 2.183435 6,112,376 526,050 6,638,426 Saw= Fmn"n GunoAvow''s Ofia Property Taxes and Limitations The following provides a general description of the City's authority to levy property taxes and limitations thereon, the method of determining the assessed value of real and personal property. In General. Under the State's laws and Constitution, property taxes are classified as either "regular" property taxes or "excess" property taxes. The City is authorized to levy both types of taxes. The City adopts a levy ordinance each November, in conjunction with its annual budget process. It submits a levy amount request to the County Assessor, who calculates the levy rate by spreading the levy amount on the tax rolls, following procedures established by the State Department of Revenue ("DOR' . The County Assessor confirms that the levy is within applicable statutory and constitutional limitations and makes any necessary reductions before the County Treasurer may begin to collect the levy on behalf of the City. See "Property Tax Collection Procedures." -9- Page 130 of 189 Regular Pmpery Taxes.[] Regular property taxes are subject to constitutional and statutory limitations as to rate and amount. See "Regular Property Tax Limitations" below. They are usually levied for any general municipal purposes, although certain statutes authorize additional levies for particular limited purposes. General purpose levies may be used for the payment of debt service on limited tax general obligation indebtedness, such as the Bonds, but State law does not provide any priority of use. In general, regular property taxes for general purposes do not require voter approval, though certain statutes authorizing limited purpose levies may require voter approval. Certain tax limitations may be exceeded upon voter approval. Excess Property Taxec0 Excess property taxes are not subject to constitutional or statutory limitation as to rate or amount, but must be authorized by a 60% approving vote meeting minimum voter turnout requirements (expect for certain levies by school districts, which require only a simple majority approval). Excess property tax levies may be made (1) by any taxing district for the repayment of voter -approved general obligation bonds issued for capital purposes, excluding replacement of equipment, (2) by any taxing district for one year for any governmental purpose; or (3) without a vote when necessary to prevent impairment of an obligation of contract, if ordered by a court of last resort. Excess levies for the repayment of voter -approved general obligation bonds must meet a minimum voter turnout of 40% of the number who voted at the last November general election. Regular Property Tax Limitations Aggregate Levy Rate Limitation. The State Constitution and statutes limit the aggregate of all regular property tax levies imposed on any tax parcel by the State and all overlapping taxing districts, except port districts and public utility districts, to 1% of the true and fair value of property. Within the 1% limitation, the levy by the State may not exceed $3.60/$1,000 and the aggregate of all regular levies by all taxing districts (other than the State and other than certain specified levies) may not exceed $5.90/$1,000 of assessed value. Those specified levies excluded from the $5.90/$1,000 limitation include port or public utility district levies; excess property tax levies; levies for acquiring conservation futures; levies for emergency medical care or emergency medical services; levies to finance affordable housing for low-income housing; certain portions of levies by metropolitan park districts; certain levies imposed by ferry districts; levies for criminal justice purposes; certain portions of levies by fire protection districts; levies by counties for transit -related purposes; and portions of certain levies by certain flood control zone districts. Because various taxing districts may overlap, the aggregate levy rate applied to any two tax parcels within a single taxing district may not be identical. If the aggregate levy rate exceeds the aggregate rate limitation on any single parcel within a taxing district, the regular levy rates of each taxing district that includes that parcel may be reduced. Because of the constitutional requirement for uniformity of taxation within a taxing district (described below), any reduction affects the entire taxing district. If reductions are required, they are made by the County Assessor, in accordance with State statutes and guidance from the DOR setting forth a prioritization of regular levies. The regular levies of the State, counties, road districts, cities, towns, port districts, and public utility districts are considered "senior" levies; the regular levies of all other taxing districts are considered "junior" levies. State statute prescribes the order in which the levies of the various junior levies are reduced or eliminated in order to comply with the aggregate rate limitations. Senior levies, such as the City's, are not subject to reduction or elimination based on aggregate rate limitations. Maximum Rate Limitation.[] State law also limits the amount of a regular levy for any particular year to the highest amount that could have been levied in any prior year, multiplied by a specified percentage (the "limit factor' plus an adjustment for new construction, annexations, certain improvements to property, and state assessed property. The limit factor is defined as the greater of (1) the least of 101% or 100% plus inflation or (2) if approved by a majority plus one vote of the governing body upon a finding of substantial need, any percentage up to 101%. If a taxing district levies less than its highest allowable levy, the amount not levied is nonetheless included in the base for determining the maximum amount increase limitation for succeeding years. This difference between the highest allowable levy amount and the amount actually levied is sometimes referred to as "banked" levy capacity. The City's banked levy capacity for 2015 is $388,859. The maximum amount increase limitation may be exceeded upon approval of a simple majority of voters. This is known as a "levy lid lift." A levy lid lift permits a levy amount increase greater than would otherwise be allowed, which increase may be effective indefinitely or for a limited period of time. Tax receipts from the incremental increase may be (but are not required to be) restricted in the ballot proposition to satisfy a limited purpose. A levy lid lift will not increase the levy if it would cause the taxing district's levy to exceed the applicable maximum rate limitations or the aggregate rate limitations described above. The City does not have a levy lid limit in place at this time. 10- Page 131 of 189 Relationship Between Rate and Amount Limitations. Regular levies are limited by both the rate limitation and the amount limitations described above and, therefore, may need to be reduced below one threshold to avoid exceeding the other. Because the regular property tax increase limitation applies to the total dollar amount levied rather than to the levy rate, increases in the assessed value of all property in the taxing district (excluding new construction, improvements and State -assessed property), which exceed the rate of growth in taxes allowed by the limit factor, may result in decreased regular tax levy rates, unless voters authorize a higher levy or the taxing district uses banked levy capacity. Decreases in the assessed value of all property in the taxing district (including new construction, improvements and State -assessed property) or increases in such assessed value that are less than the rate of growth in taxes imposed, among other events, may result in increased regular tax levy rates. As assessed values rise, the levy amount increase limitation may restrict levy growth. As assessed values fall, the levy rate limitation may restrict levy growth. Uniformly Reguirrment0 The State Constitution requires that property taxes be levied at a uniform rate upon the same class of property within the territorial limits of a taxing district levying the tax. The Constitution also provides that all real estate constitutes a single class, except for certain agricultural properties eligible for special use classification, which may be valued based on current use. It is possible, because of overlapping taxing district boundaries, the maximum permissible levy might vary within the boundaries of a particular taxing district. In that event, to comply with the constitutional requirement for uniformity of taxation, the lowest permissible rate for any part of the taxing district would be applied to the entire taxing district. Overlapping Taxing Districts The overlapping taxing districts within the City have the statutory power to levy regular property taxes at the following rates subject to the limitations provided by chapter 84.55 RCW, and to levy certain other voter approved property taxes. For purposes of demonstration, representative levy rates for "levy code 101" of the County, as well as the statutory regular levy rate limitation of each type of potential overlapping district, are listed below. Levy code 101 is wholly within the City, however, it does not include all of the property within the City; as a result, additional taxing districts, not listed below, levy taxes within the City. LEVY RATES FOR THE 2015 TAX COLLECTION YEAR (1) Taxing Authority Franklin County Port of Pasco The City State Schools School District No. 1 $1.43177 Statutory Representative Regular Rate Levy Rates Rate Limit Per $1,000 of Per $1,000 of Assessed Value Assessed Value $1.43177 $1.80(2) 0.31343 0.4513) 1.98764 3.60(4) 2.35553 3.60 (s) 6.88560 n/a (6) Total Rate for the County levy code 101: $12.97397 (1) Rates levied for collection in 2015, shown in dollars per $1,000 of assessed value. Levy rates vary from year to year due to changes in assessed value and in application of the rate and amount limitations discussed above. (2) Pursuant to RCW 84.52.043(1), a county may increase its levy from $1.80 per $1,000 of assessed value to a rate not to exceed $2.475 per $1,000 of assessed value for general county purposes if (i) the total levies for both the county and any mad levy imposed within the county do not exceed $4.05 per $1,000 of assessed value and (ii) no other taxing district has its levy reduced as a result of the increased county levy. Road levies are collected only within the unincorporated portions of a county and therefore do not apply to any territory within the City. The County does not impose a road levy. (3) Port districts have available four different levies of up to $0.450 each. Each levy carries a specific purpose, and some require voter approval or other special circumstances. (4) Pursuant to RCW 41.16.060, $0.225 of the total $3.60 must be used for Esse pension funding purposes, if required; otherwise this tax may be levied and used for any other municipal purpose. (5) Pursuant to RCW 84.52.043(1), the levy by the State may not exceed $3.60 per $1,000 of assessed value adjusted to the State equalized value in accordance with the indicated ratio fixed by the State Department of Revenue, which levy is to be used exclusively for the support of the common schools. (6) Washington school districts do not have nonvoted regular levy authority. Souse: Fraakhx CounyA✓sessor's Offrn -11- Page 132 of 189 Assessed Valuation Determination The County Assessor (the "Assessor') determines the value of all real and personal property throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's duties and methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the DOR For tax purposes the assessed value of property is currently set at 100% of its actual value. By State statute all property is subject to revaluation at least every four years. The County revalues property every four years such that one-fourth of the property in the County is revalued every year. The property is listed by the Assessor on a tax roll at its current assessed value and the tax roll is filed in the Assessor's office. The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain property, subject to further revision by the State Board of Equalization. After all administrative procedures are completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing district. Property Tax Collection Procedure Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing districts in the County (including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of the property within the various taxing districts. The method of giving notice of payment of taxes due, accounting for the money collected, the division of the taxes among the various taxing districts, giving notice of delinquency, and collection procedures are all covered by detailed statutes. The Assessor extends the taxes to be levied within each taxing district upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax account number to each tax lot. The tax roll is delivered to the County Treasurer by January 15 of each year, and an abstract of the tax roll, showing the total amount of taxes collectible in each of the taxing districts for the year, is delivered to the County Executive (an elected official) at the same time. All taxes are due and payable on April 30 of each year, but if the amount due from a taxpayer exceeds $50, one-half may be paid then and the balance no later than October 31 of that year. The lien for property taxes is prior to all other liens or encumbrances of any kind on real or personal property subject to taxation except for federal civil judgment liens and the possible application of the State "homestead exemption" described below. A federal lien on personal property that is filed before the personal property tax is levied is senior to the local personal property tax lien. In addition, a federal civil judgment lien (but not a federal tax lien) is senior to real property taxes that are levied after the judgment lien has been recorded. By law the Treasurer may not commence foreclosure of a tax lien on real property until three years have passed since the first delinquency. The State's courts have not decided whether the Homestead Law (chapter 6.13 RCW) may give the occupying homeowner a right to retain the first $125,000 of proceeds of the forced sale of the family residence or other "homestead" property for delinquent general property taxes. The United States Bankruptcy Court for the Western District of Washington has held that the homestead exemption applies to the lien securing property taxes, while the State Attorney General has taken the position that it does not. See also Algona v. Sharp, 30 Wn. App. 837, 638 P.2d 627 (1982) (holding that liens securing improvement district assessments are subject to the homestead exemption). Collection Record The following table shows the current and historical assessed value, property tax levy amounts and property tax collection record for the City from 2011 to 2015. (1) Assessed value is based upon 100% of estimated actual valuation. (2) As of 05/01/15. Sours, Franklin Como,Asmssor'r and Treaemer'.r Offias -12- Page 133 of 189 Percent Percent Assessed Collected In Collected as of Year Valuation(t) Tax Levy Year of Levy 05/01/15 2015 $3,679,413,343 $7,286,535 49.88%(1) 49.88% 2014 3,543,038,495 7,064,399 98.20 99.01 2013 3,300,169,365 7,010,611 97.50 99.46 2012 3,214,780,310 6,850,251 97.70 99.85 2011 3,100,250,228 6,638,425 97.60 99.91 (1) Assessed value is based upon 100% of estimated actual valuation. (2) As of 05/01/15. Sours, Franklin Como,Asmssor'r and Treaemer'.r Offias -12- Page 133 of 189 Largest Taxpayers The following lists the ten largest property taxpayers within the City for tax collection year 2015. Taxpayer Syngenta Seeds Inc. Pasco Processing LLC Twin City Foods Bybee Foods LLC Grine nway Enterprises Inc. The Crossing at Chapel Hill LLC Broadmoor LLC Wal-Mart, Inc. Reser's Fine Foods Kenyon Zero Storage Inc. Subtotal - 10 Largest Taxpayers All Other City Taxpayers Total City Taxpayers Some: Franklin Coun[yAsresr 's Offia Collection of Other Taxes 2015 MAJOR PROPERTY TAXPAYERS In addition to regular property tax levies, the City is also authorized to impose various other taxes, including those described below. Neither the State nor any municipal corporation of the State is authorized under the Constitution to impose a tax on net income. Retail Sales and Use Tax Distributions. In addition to the State rate of 6.5%, the City, County and other local taxing jurisdictions can impose a sales and use tax as a percent of the selling price for value on any retail sale or use of tangible personal property within the City. A portion of the total sales and use tax collected is a local tax and is returned to the City or County or certain other local jurisdictions where the sales transaction took place. The City's sales and use tax is collected by the DOR under a contract with the City that provides for a deduction by the DOR of 1 percent (not exceeding 2 percent of the tax collected) for the DOR's administration costs. Of the remaining 99 percent, the DOR distributes 15 percent to the County and distributes the remaining 84 percent to the City on a monthly basis. The criminal justice tax is an additional local sales and use tax of 0.1 percent for funding criminal justice programs. The criminal justice sales tax distribution is based on population. This tax is levied only by the County and is imposed countywide, but the receipts are shared with the cities. The adoption of this tax does not require a vote of the people. Of the revenue collected for criminal justice, 1 percent is retained for administration. Of the amount remaining, 10 percent is distributed to the county and 89 percent to cities and counties on a per capita basis based on their official April 1 populations Stnamlined Sales and Use. In 2003, the State Legislature approved legislation authorizing the State's membership in the Streamlined Sales and Use Tax Agreement (the "SSUTA'�, in an effort to make sales and use taxes in the State more uniform with other states. Congress has required that state sales taxes be more uniform before Congress will permit taxation of interstate catalogue and Internet sales. In 2007, the State Legislature adopted legislation fully conforming to the SSUTA. Effective July 1, 2008, the sales tax system changed in the State from an origin -based system to a destination -based system. Under destination sourcing, sales taxes on goods delivered to customers in the State are credited to the taxing jurisdiction where the goods are delivered (as opposed to the point of sale) and the rate of the tax is determined by the local rate in the destination taxing jurisdiction. In 2014, the amount of the mitigation for the impact of the SSUTA received by the City was $173,100. -13- Page 134 of 189 2015 % of Total Assessed Assessed Type of Business Value Value Seed Producer $36,442,105 0.99% Food Processing 29,574,000 0.80 Food Processing 21,360,227 0.58 Food Processing 20,981,000 0.57 Food Processing 17,819,803 0.48 Real Estate 16,174,000 0.44 Real Estate (Apt. Complex) 15,382,400 0.42 Retail department/food store 14,056,300 0.38 Food Processing 13,662,200 0.37 Sub -zero and cold storage 12,997,600 0.35 198,449,635 5.39 3,480,963,708 94.61 $3,679,413,343 100.00% In addition to regular property tax levies, the City is also authorized to impose various other taxes, including those described below. Neither the State nor any municipal corporation of the State is authorized under the Constitution to impose a tax on net income. Retail Sales and Use Tax Distributions. In addition to the State rate of 6.5%, the City, County and other local taxing jurisdictions can impose a sales and use tax as a percent of the selling price for value on any retail sale or use of tangible personal property within the City. A portion of the total sales and use tax collected is a local tax and is returned to the City or County or certain other local jurisdictions where the sales transaction took place. The City's sales and use tax is collected by the DOR under a contract with the City that provides for a deduction by the DOR of 1 percent (not exceeding 2 percent of the tax collected) for the DOR's administration costs. Of the remaining 99 percent, the DOR distributes 15 percent to the County and distributes the remaining 84 percent to the City on a monthly basis. The criminal justice tax is an additional local sales and use tax of 0.1 percent for funding criminal justice programs. The criminal justice sales tax distribution is based on population. This tax is levied only by the County and is imposed countywide, but the receipts are shared with the cities. The adoption of this tax does not require a vote of the people. Of the revenue collected for criminal justice, 1 percent is retained for administration. Of the amount remaining, 10 percent is distributed to the county and 89 percent to cities and counties on a per capita basis based on their official April 1 populations Stnamlined Sales and Use. In 2003, the State Legislature approved legislation authorizing the State's membership in the Streamlined Sales and Use Tax Agreement (the "SSUTA'�, in an effort to make sales and use taxes in the State more uniform with other states. Congress has required that state sales taxes be more uniform before Congress will permit taxation of interstate catalogue and Internet sales. In 2007, the State Legislature adopted legislation fully conforming to the SSUTA. Effective July 1, 2008, the sales tax system changed in the State from an origin -based system to a destination -based system. Under destination sourcing, sales taxes on goods delivered to customers in the State are credited to the taxing jurisdiction where the goods are delivered (as opposed to the point of sale) and the rate of the tax is determined by the local rate in the destination taxing jurisdiction. In 2014, the amount of the mitigation for the impact of the SSUTA received by the City was $173,100. -13- Page 134 of 189 The State Legislature enacted certain provisions to mitigate net losses in sales and use tax collections of local taxing jurisdictions resulting from the change to a destination -based system. To qualify, the local taxing jurisdiction must be negatively impacted by the legislation and the local sales tax must be in effect before July 1, 2008, among other requirements. Money for mitigation is subject to appropriation by the State Legislature. Under the mitigation legislation, on each July 1, the State Treasurer is required to transfer an amount determined by the DOR to fully mitigate negatively impacted local jurisdictions. Mitigation for the first year is determined by the DOR from tax reporting data to determine actual losses less gains from voluntarily registered sellers. Begirming December 31, 2008, distributions from the account are required to be made quarterly. After the first year, the DOR is required to determine each local jurisdiction's annual losses, and distributions are required to be made quarterly representing one-fourth of a jurisdictions annual loss less voluntary compliance revenue from the previous quarter. Losses in sales tax revenues are based on a business by business comparison of sales patterns in each jurisdiction before and after the change to destination -based sales tax. "Voluntary compliance revenue" is the local sales tax revenue gain to each local taxing jurisdiction reported to the DOR by sellers in other states voluntarily registered through the SSUTA. Utilities Tax. Utility taxes may be levied on the gross operating revenues earned by private utilities performing operations within the boundaries of a city and by a city's own municipal utilities. Utilities on which taxes are currently levied include electric, water, irrigation, sewer, storm water, solid waste, gas, telephone, cable TV and cellular phone service. There are no restrictions on the tax rates for water, irrigation, sewer, solid waste and storm water utilities. Legislation passed in 1982 limits the tax rate that a city may impose on electric, gas, steam and telephone utility services to six percent; the city may impose a higher tax if fust approved by a majority of the city voters. The City levies an additional 2.5% for a total of 8.5% on these utilities Cellular telephone and pager services may be taxed at the same rate as other telephone services from these utilities. The City also imposed an 8.5% levy on the other utilities. Real Estate Excise Tax Distributions Another source of tax revenue for the City is areal estate sale excise tax, which is levied on each sale of real property within the City which is currently at the rate of 0.50 percent of the selling price. Prior to 2010, the City levied only 0.25 percent of the selling price. The following table shows the historical and budgeted revenues from these taxes. General Tax Revenues Historical and Budgeted Tax Collections (Amount in Thousands) Budget 2015 Property Taxes $7,298 Sales Taxes 10,521 B&O and Utility Taxes 9,390 Gambling, Excise & Admissions Taxes 1,046 Actual 2014 2013 2012 2011 2010 $7,179 $7,118 $6,844 $6,676 $6,059 12,695 11,472 10,284 9,403 8,245 9,592 8,894 8,634 8,713 8,691 1,092 1,098 1,244 1,062 835 Total Taxes $28,255 $30,558 $28,582 $27,006 $25,854 $23,830 * NOTE: The "Total Taxes" does not equal the taxes shown as General Fund taxes on the following table because the number shown here includes tax revenues in other funds such as real estate excise taxes and fuel taxes that are reported in Special Revenue Funds. s0mv Gty of Pun, -14- Page 135 of 189 FINANCIAL INFORMATION Statement of Revenues, Expenditures and Changes in Fund Balances REVENUES Taxes Licenses and permits Intergovernmental revenue Charges for services Fines and forfeits Miscellaneous Total Revenues EXPENDITURES Current General government Public safety Natural & economic environment Transportation Health and human services Culture and recreation Capital outlay Debt Service: Principal Interest Total Expenditures Excess Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Debt proceeds from refinancing Debt proceeds used in refinancing Insurance recoveries/other sources Transfer in Transfer out Total Other Financing Sources (Uses) Net Change in Fund Balance Prior Year Adjustments([) Year Ended December 31 Unaudited 2014 2013 2012 $28,523,685 $26,345,139 $24,846,828 1,587,827 1,466,675 1,571,850 1,960,962 1,796,829 1,838,746 5,683,455 4,737,688 4,125,398 868,689 937,047 849,631 690,740 624,571 783,492 39,315,358 35,907,949 34,015,945 7,673,927 6,705,485 6,380,710 18,692,966 18,675,555 16,766,090 1,756,317 1,648,750 2,908,254 1,669,218 1,545,972 - 0 - 18,614 4,432,438 4,260,846 4,070,144 89,612 296,892 257,193 457,316 468,042 2,132,463 122,514 133,172 180,056 34,894,308 33,734,714 32,713,524 4,421,050 2,173,235 1,302,421 138,000 138,000 539,090 (2,475,940) 5,608,583 3,563,677 (2,337,940) 5,470,583 3,024,58 2,083,110 (3,297,348) (1,722,166) 1,054,831 2011 2010 2009 $23,671,711 $21,761,029 $22,614,629 1,589,554 1,674,474 1,586,917 2,087,937 1,887,298 1,852,035 3,511,244 2,932,969 2,839,213 902,265 898,383 1,012,084 785,500 771,016 831,708 32,548,211 29,925,169 30,736,586 6,086,874 6,547,150 5,846,586 16,101,436 16,503,753 16,327,460 2,271,570 2,082,336 2,284,011 14,252 10,707 12,400 3,899,162 3,794,352 3,771,508 177,390 186,876 1,180,315 645,312 550,363 657,732 341,265 335,719 227,655 29,537,261 30,011,256 30,307,667 3,010,950 (86,087) 428,919 4,443,726 - - (4,280,000) - - - 59 212,312 370,712 459,791 119,676 1,445,605 (815,800) (1,950,796) (911,167) (355,950) (1,618,808) 2,099,783 (442,037) (1,189,889) 42,654 FUND BALANCE - BEGINNING OF YEAR 6,245,219 9,542,567 11,264,734 (0 9,158,689 (2) 9,856,336 f4 10,962,088 FUND BALANCE - END OF YEAR $9,383,160 $6,245,219 $9,542,568 $11,258,472 $9,414,299 59,814,853 (1) Prior period adjustments are the result of both a correction to and a change in application of accounting principles relating to the recognition of tax revenues. (2) As restated. Soum: CityofPmw AuAded Fiaonaal Statemextt. -15- Page 136 of 189 General Fund Budget Summary The following table shows a summary of the City's 2015 and 2014 General Fund budgets 16- Page 137 of 189 Adopted Amended 2015 2014 Revenues Taxes $26,395,272 $27,176,714 Licenses & Permits 1,304,500 1,424,800 Intergovernmental 1,566,170 1,496,000 Charges for Services 6,224,521 5,751,233 Fines & Forfeitures 806,650 837,000 Miscellaneous Revenues 437,465 329,160 Interfund Transfers & Other Financing 8,471,423 4,077,956 Total Revenues 45,206,001 41,092,863 Beginning Fund Balance 6,501,765 5,902,824 Total General Fund Resources $51,707,766 $46,995,687 Expenditures Salary & Wages $18,121,861 $17,465,233 Personnel Benefits 6,956,111 6,643,770 Supplies 1,170,014 1,443,892 Services 8,363,274 8,981,087 Capital Outlay 512,550 189,800 Debt Service 575,030 3,593,518 Interfund Payments for Services & Equipment 1,523,458 1,387,523 Interfund Transfers 8,790,266 2,598,942 Total Expenditures 46,012,564 42,303,765 Ending Fund Balance 5,695,202 5,422,206 Total General Fund Expenditures $51,707,766 $47,725,971 16- Page 137 of 189 CITY PROFILE The City, located in southeastern Washington, encompasses approximately 33.6 square miles and has a 2014 estimated population of 67,700. The City and the adjacent cities of Richland and Kennewick make up what is known as the Tri -Cities. The City serves as the Franklin County seat and is the largest city in the County. The City was incorporated in 1891. The City has a Council -Manager form of government. The City Manager is appointed by the City Council and is responsible for the administration of all aspects of City operations. Council members are part-time officials, elected every four years through city-wide elections. The Council is comprised of seven members, one of whom is selected by the members to serve as Mayor for a two-year term The City provides a full range of services normally associated with a municipality. These services include police and fire protection, ambulance service, parks and recreational activities, street maintenance and construction, planning and zoning and general administrative services. The City owns and operates water, sewer and stormwater utility and a cemetery. The City owns and operates a golf course. City Council Following are the current members of the City Council and their term expiration dates. Members Matt Watkins Rebecca Francik Robert Hoffmann Michael Garrison Saul Martinez Tom Larsen Al Yenney Key Administrative Staff Position Mayor Mayor Pro -Tem Council Member Council Member Council Member Council Member Council Member Term Expires December 31, 2015 December 31, 2015 December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2017 December 31, 2015 Dane Zabell, City Manager, assumed his position with the City in August 2014. Mr. Zabell has been in local government for over 33 years, and was formerly the City Manager for the City of Fife, Washington, a position he held since 2011. Prior to that he was Assistant City Manager for Yakima, Washington, from 2005-2011 and Public Works Director for the City of Bothell, Washington, from 2000-2005. Mr. Zabell also worked for the City of Marysville, Washington, from 1985 - 2000, serving in positions including Engineer, Public Works Director and City Administrator for the last seven years. Mr. Zabell has a Master of Public Administration degree from the University of Washington and a Bachelor of Science degree in Public Administration from Upper Iowa University. Stan Strebel, Deputy City Manager, assumed his current responsibilities in July 2009. Prior to then, he served as City's Director of Administrative and Community Services from 1999. Mr. Strebel has also served as City Manager of the City of Femdale, Washington for seven years and as City Manager of the City of Bisbee, Arizona for four years. He has a total of 35 years experience in local government administration. He holds a Bachelor of Arts Degree in Urban Planning from the University of Washington and an MPA from Brigham Young University. Rick Terway, Administrative and Community Services Director, began serving as the Director of the City's Department of Administrative and Community Services Department in July 2009. The department consists of five service divisions: Administration, Facilities, Finance, Information Systems, and Recreation. Prior to coming to the City, Mr. Terway served as Parks, Recreation and Forestry Manager for the City of Fergus Falls, Minnesota for three years and as Public Service Director for the City of Vadnais Heights, Minnesota. His experience also includes mote than 12 years working for Washington State Parks. Mr. Terway holds a Bachelor of Science in Applied Management from National American University and an Associate of Applied Science in Natural Resources from the University of Minnesota. Eva Lindgren, Deputy Director Administrative and Community Semites Department, served for a brief period as the City's Interim Finance Manager beginning in the fall of 2014. She was appointed to her current position in early 2015, where she has primary responsibility to oversee the finance operations of the City. Ms. Lindgren is a Certified Public Accountant, licensed in both Washington and Alaska. She has over two decades of experience auditing and working for local governments. She was a Staff Accountant for four years, the Accounting Manager for the City of Ketchikan, Alaska for nine years; the Controller for the North Slope Borough, Alaska for three years; and the Finance Manager for the City of Chehalis, Washington for six years. -17- Page 138 of 189 Labor Relations The City currently employs 336 employees (316 full time equivalents, not including 32 seasonal employees) people including part-time workers. There are 210 employees represented by 5 bargaining units as follows: No. of Current Contract Bargaining Unit Employees Expiration Date International Union of Operating Engineers, Local No. 280 International Association of Firefighters Pasco Police Officers Assoc. "Uniformed" Employee Pasco Police Officers Assoc. "Non -uniformed" Employee Pasco Code Enforcement Officer's and Permit Technicians 72 December 31, 2015 57 December 31, 2015 67 December 31, 2015 8 December 31, 2016 6 December 31, 2015 210 The City considers labor relations with its bargaining units to be good. There have been no recent strikes or major labor relations problems. Pensions Substantially all of the City employees are enrolled in the State Public Employees Retirement System ('PERS') or the Law Enforcement Officers and Fire Fighters Retirement System ("LEOFF'). PERS Plans 1 and 2 and LEOFF are defined benefit plans and PERS Plan 3 is both a defined benefit plan (employer share) and defined contribution plan (employee share). These plans are administered by the State. Contributions by both employees and employers are based on gross wages. Those PERS and LEOFF participants who joined the system by September 30, 1977 are Plan 1 members. PERS participants who joined on or after October 1, 1977, are Plan 2 members, unless they exercise an option to transfer to Plan 3. PERS participants joining on or after September 1, 2002, have the irrevocable option of choosing membership in PERS Plan 2 or PERS Plan 3. LEOFF participants who joined on or after October 1, 1977, are Plan 2 members. State law requires systematic actuarial based funding to finance the retirement plans. Actuarial calculations to determine employer and employee contributions are prepared by the Office of the State Actuary ('OSA', a nonpartisan legislative agency charged with advising the Legislature and Governor on pension benefits and funding policy. To calculate employer and employee contribution rates necessary to pre -fund the plans' benefits, OSA uses actuarial cost and asset valuation methods selected by the Legislature as well as economic and demographic assumptions. The Legislature adopted the following economic assumptions for contribution rates beginning July 1, 2013: (1) 7.9% (7.8% as of July 1, 2014) rate of investment return; (7.5% for LEOFF Plan 2); (2) general salary increases of 3.75%; (3) 3.0% rate of Consumer Price Index increase; and (4) 0.95% growth in membership (1.25% for LEOFF). The long-term investment return assumption is used as the discount rate for determining the liabilities for a plan. The 10 -year (2005-2014) annualized return on the investment of the retirement funds was 8.35%. Plan Funding Contribution Rater and Amouna. All State -administered retirement plans are funded by a combination of funding sources: (1) contributions from the State for certain plans; (2) contributions from employers (including the State as employer and the City and other governmental employers); (3) contributions from employees; and (4) investment returns. Retirement funds are invested by the Washington State Investment Board, a 15 -member board created by the Legislature in 1981. The City's total contribution for the year ended December 31, 2014, was $1,546,052, representing 7.2 percent of covered payroll. The City contributed $807,853 in 2013 and $996,260 in 2014 to PERS, and $573,271 in 2013 and $549,792 in 2014 to LEOFF for all of the City's employees that are covered under PERS and LEOFF. Under State statute, contribution rates are adopted by the Pension Funding Council ("PFC' (and, for LEOFF 2, by the LEOFF 2 Board) in even -numbered years for the next ensuing State biennium. The rate -setting process begins with an actuarial valuation by the OSA, which makes non-binding recommendations to the Select Committee on Pension Policy, which then recommends contribution rates to the PFC and the LEOFF 2 Board. No later than the end of July in even -numbered years, the PFC and the LEOFF 2 Board adopts contribution rates, which are subject to revision by the Legislature. The following table outlines the current contribution rates of employers and employees under PERS and LEOFF. -18- Page 139 of 189 Contribution Rates for the 2013-15 Biennium Expressed as a Percentage of Covered Payroll Employer(l) Employee PERS Plan 1 9.21% 6.00% PERS Plan 2 9.21 4.92 PERS Plan 3 9.21 Variable P LEOFF Plan 1 0.18 0.00 LEOFF Plan 2 5.23 8.41(3) (1) Includes a 0.18% DRS administration expense fee. (2) Rates vary from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. (3) The State also contributes 3.36% to this plan. Source: Deyartment of Refirement Systems. In July 2014, the PFC adopted contribution rate increases to be phased in over the next three biennia, beginning with the 2015-2017 biennium. For the 2015-2017 biennium, the PFC adopted employer rates of 11% (plus an additional 0.18% administration fee) for PERS Plans 1, 2 and 3 (in each case, net of administrative fees), and an employee rate of 6.12% for PERS Plan 2. The LEOFF 2 Board did not adopt a rate increase for the 2015-2017 Biennium. While the City's prior contributions represent its full current liability under the retirement systems, any unfunded pension benefit obligations could be reflected in future years as higher contribution rates. It is expected that the contribution rates for employees and employers in the PERS Plans 2 and 3 will increase in the coming years. The OSA website (which is not incorporated into this Official Statement by reference) includes information regarding the values, funding levels and investments of these retirement plans. During the years 2001 through 2010 the rates adopted by the Legislature were lower than those that would have been required to produce actuarially required contributions to PERS Plan 1, a closed plan with a large proportion of the retirees. The State Actuary's actuarial valuation for PERS Plan 1 as of June 30, 2012 showed a 69% funded ratio (unfunded liability of $3.8 billion) while PERS Plans 2 and 3 and LEOFF Plans 1 and 2 had valuation assets that exceed their accrued liability by $2.3 billion (a 111% funded ratio), $1.4 billion (a 135% funded ratio) and $1.2 billion (a 119% funded ratio), respectively. The State Actuary's actuarial valuation for PERS Plan 1 as of June 20, 2013 showed a 63% funded ratio (unfunded liability of $4.831 billion) while PERS Plans 2 and 3 and LEOFF Plans 1 and 2 had valuation assets that exceed their accrued liability by $537 million (a 102% funded ratio), $1.1 billion (a 125% funded ratio) and $1.0 billion (a 115% funded ratio), respectively. The decrease in the funded status and increase in the unfunded accrued actuarial liability primarily reflect changed demographic assumptions, including projected improvements in mortality rates, and the statutory requirement that the assumed rate of return be reduced to 7.8% from 7.9%. OSA uses the Projected Unit Credit C PUC' cost method and the Actuarial Value of Assets ('AVXto report a plan's funded status. PUC is one of several acceptable measures of a plan's funded status under current GASB rules. The PUC cost method projects future benefits under the plan, using salary growth and other assumptions and applies the service that has been earned as of the valuation date to determine accrued liabilities. The AVA is calculated using a methodology which smooths the effect of short-term volatility in the Market Value of Assets by deferring a portion of annual investment gains or losses over a period of up to eight years. PERS Plans 2 and 3 are accounted for in the same pension trust fund and may legally be used to pay the defined benefits of any PERS Plan 2 or 3 members. Assets for one plan may not be used to fund benefits for another plan: however, all employers in PERS are required to make contributions at a rate (percentage of payroll) determined by the OSA every two years for the sole purpose of amortizing the PERS Plan 1 unfunded actuarial accrued liability within a rolling 10 -year period. The Legislature has established certain maximum contribution rates that began in 2009 and will continue until 2015 and certain minimum contribution rates that are to become effective in 2015 and remain in effect until the actuarial value of assets in PERS Plan 1 equals 100% of the actuarial accrued liability of PERS Plan 1. These rates are subject to change by future legislation enacted by the State Legislature to address future changes in actuarial and economic assumptions and investment performance. In 2011, the Legislature ended the future automatic annual increase, which is a fixed dollar amount multiplied by the member's total years of service, for most retirees in the PERS Plan I plan, which is forecast to reduce the unfunded accrued actuarial liability in PERS Plan 1. The State Supreme Court recently upheld the constitutionality of this legislation. -19- Page 140 of 189 Other Retirzment Systems–Firemen's Pension Fund. The City is the administrator of a single employer defined benefit pension plan, the Firemen's Pension Fund (the "Firemen's Pension Fund Plan'). The Firemen's Pension Fund Plan is limited to firefighters and beneficiaries employed before March 1, 1970, and as of March 1, 1970, was closed to new entrants. Firefighters hired before March 1, 1970, at retirement receive the greater of the pension benefit provided under the Firemen's Pension Fund Plan or under LEOFF. Any excess benefit over the LEOFF benefit is provided by the Firemen's Pension Fund Plan. As of December 31, 2014, there were a total of 11 individuals covered by the Firemen's Pension Fund Plan, and 5 of the 11 are widows. All future obligations of the Firemen's Pension Fund Plan were assumed by LEOFF. For additional information, see Appendix C—"2013 AUDITED FINANCIAL STATEMENTS—Note 5(C) Employee Retirement Systems and Pension Plans." The information in this section has been obtained from the City's financial statements and information on the State Actuary's and State Department of Retirement System's websites. Other Post -Employment Benefits LEOFF 1. In accordance with chapter 41.26 RCW, the City provides continuation of medical insurance coverage to employees that retire under the LEOFF retirement system, which includes all police officers and fire fighters who were hired prior to October 1, 1977. Medical coverage continues for the fife of the retiree. The plan is a closed, single employer defined benefit healthcare plan administered by the City. As of December 31, 2014, there were 32 retirees and two active employees in this plan. The City's annual other postemployment benefit ("OPEB'� cost is calculated based on the annual required contribution ("ARC'S, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The tables in Note 5(F) of Appendix C show the components of the City's annual OPEB cost for 2014, the amount actually contributed to the plan and changes in the City's net OPEB obligation. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the years 2012 through 2014 were as follows: Fiscal Year Annual % of Annual Net Ended Cost OPEB Contributed OPEB Obligation 12/31/2014 $1,091,609 59% $2,423,910 12/31/2013 800,733 64 1,981,585 12/31/2012 948,878 45 1,695,149 The City currently funds post -employment healthcare benefits on a pay-as-you-go basis. The City finances the plan by purchasing medical insurance and self -funding vision and medical benefits not covered by the insurance. Firemen's Pension, As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977 under a single employer, defined benefit healthcare plan administered by the City. The members' necessary hospital, medical, and nursing care expenses not payable by worker's compensation, social security, insurance provided by another employer, or other pension plan, or any other similar source are covered. Most medical coverage for eligible retirees is provided by the City's employee medical insurance program. Under authorization of the LEOFF Disability Board, direct payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Members of the Fire Pension plan purchase medical insurance through the City's medical insurance program. Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by the RCW. The City's funding policy is based upon pay-as-you-go financing requirements for any requirements in excess of amounts previously set aside in the Fire Pension OPEB Trust Fund. The City of Pasco has a total of 6 LEOFF plan 1 members that are also members of the Old Firemen's Pension Plan and are fully funded through the Old Fire Pension Fund. All are retired. Based on the 2014 in-house evaluation, the Actuarial Accrued Liability for the Fire Pension OPEB Trust Fund is $1,988,453. As of December 31, 2014, the fund had assets of $2,326,321. -20- Page 141 of 189 The City's OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB obligation for the years ending December 31 are shown on the following schedule: Fiscal Year Annual % of Annual Net Ended Cost OPEB Contributed OPEB Obligation 12/31/2014 $0 n/a $0 12/31/2013 0 n/a 0 12/31/2012 0 n/a 0 For more detailed information on the City's OPEB obligations, see Note 5(I) of Appendix C. Risk Management The City is a member of the Washington Cities Insurance Authority C WCIA'�. Nine cities originally formed WCIA in 1981 for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self- insuring, and/or jointly contracting for risk management services. WCIA currently has over 175 members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police, public officials' errors or omissions, stop gap, and employee benefits liability. Limits are $4 million per occurrence self insured layer, and $16 million per occurrence in the re -insured excess layer. The excess layer is insured by the purchase of reinsurance and insurance. Total limits are $20 million per occurrence, subject to aggregate sublimits in the excess layers. The WCIA Board of Directors detertnines the limits and terms of coverage annually. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's annual assessment. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasures to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. Accounting and Budgeting Process Baru ofAcounting. The accounting and reporting policies of the City conform to the Budgeting, Accounting and Reporting System (`BARS' as prescribed by the State Auditor. The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The Budget Pmce s.. Washington law, chapter 35A.33 RCW, prescribes the method and schedule for annual budgeting for the City. Annual appropriated budgets are adopted at the fund level. Local improvement district debt service and certain custodial agency funds, however, are not budgeted. A budget increase or decrease to a fund must be authorized by the City Council, while appropriation transfers within a fund may be authorized by the City Manager. All budgets are controlled on an organizational basis. The budgets constitute the legal authority for expenditures at that level. Annual appropriations for all funds lapse at the fiscal period end. -zl- Page 142 of 189 Auditing of City Finances The City's financial statements are prepared in conformity with generally accepted accounting principles ('GAAP' as applied to governmental units, and are regulated by the Washington State Auditor's Office, division of Audit. The Government Accounting Standards Board ('GASB' is the accepted standard setting body for establishing governmental accounting and financial reporting principles. Accounting systems and budgetary controls are prescribed by the Office of the State Auditor ("SAO') in accordance with RCW 43.09.200, RCW 43.09.230 and GAAP. State statutes require audits for cities to be conducted by the SAO. The City complies with the systems and controls prescribed by the SAO and establishes procedures and records which reasonably assure safeguarding of assets and the reliability of financial reporting. The SAO is required to examine the affairs of cities. The City is audited annually. The examination must include, among other things, the financial condition and resources of the City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of the accounts and reports of the City. The SAO reviewed the City's financial statements and accounting practices for fiscal year 2013, and issued an unqualified opinion on the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information. The City's audited financial statements for the year ended December 31, 2013 are attached herein as Appendix C. Authorized Investments Chapter 35.39 RCW limits the investment by cities and towns of its inactive funds or other funds in excess of current needs to the following authorized investments: United States bonds; United States certificates of indebtedness; bonds or warrants of the State and any local government in the State; its own bonds or warrants of a local improvement district which are within the protection of the local improvement guaranty fund law; and any other investment authorized by law for any other taxing district or the State Treasurer. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable certificates of deposit in designated qualified public depositories; in obligations of the US government, its agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in the obligations of the federal home loan bank, federal national mortgage association and other government corporations subject to statutory provisions and may enter into repurchase agreements. Utility revenue bonds and warrants of any city and bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030). Money available for investment may be invested on an individual fund basis or may, unless otherwise restricted by law, be commingled within one common investment portfolio. All income derived from such investment may be either apportioned to and used by the various participating funds or for the benefit of the general government in accordance with city ordinances or resolutions. Funds derived from the sale of bonds or other instruments of indebtedness will be invested or used in such manner as the authorizing ordinances, resolutions or bond covenants may lawfully prescribe. Local Government Investment Pool The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP', which invests money on behalf of more than 450 cities, counties and special taxing districts. In its management of LGIP, the State Treasurer is required to adhere, at all times, to the principles appropriate for the prudent investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands. The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool which provides its participants the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them. The pool is restricted to investments with maturities of one year or less, and the average life typically is less than 90 days. Investments permitted under the pool's guidelines include U.S. government and agency securities, bankers' acceptances, high quality commercial paper, repurchase and reverse repurchase agreements, motor vehicle fund warrants, and certificates of deposit issued by qualified Washington State depositories. The City may withdraw its funds in whole or in part on less than 24 hours notice. Authori.Zed Investments for Bond Proceeds. In addition to the eligible investments discussed above, bond proceeds may also be invested in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less than four years; municipal securities rated in one of the four highest categories; and -22- Page 143 of 189 money market funds consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating categories of a nationally recognized rating agency. Bond proceeds may also be invested in shares of money market funds with portfolios of securities otherwise authorized by law for investment by local governments (RCW 39.59.030). City Investments. The City's investments are categorized to give an indication of the risk assumed at year-end. The following summary shows the City's investments at year-end categorized by risk. Category 1 includes investments that are either insured or registered and held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments that are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or its trust department or agent, but not in the City's name. As of March 31 2015, the City's investments, excluding investments held in trust funds, at market value totaled $41,022,300. The concentration of credit risk as a percentage of total investments is as follows: % of City of Pasco Issuer Total Fair Value U.S. Government Securities 25.3% $10,370,061 Local Gov't. Investment Pool 74.7 30,652,239 100.00% $41,022,300 GENERAL AND ECONOMIC INFORMATION The City is located in southeastern Washington in Franklin County (the "County' at the confluence of the Columbia and the Yakima rivers, approximately 200 miles southeast of Seattle, 150 miles southwest of Spokane and 200 miles northeast of Portland, Oregon. Pasco is one of three cities which make up the urban area known as the Tri -Cities, the others being Kennewick and Richland in neighboring Benton County. Population With a 2014 estimated population of 67,700, the City is the largest of four incorporated communities in Franklin County. Historical populations for the City and Franklin County are as follows: Year City of Pasco Franklin County 2014 67,700 86,600 2013 65,600 84,800 2012 62,670 82,500 2011 61,000 80,500 2010 59,781 78,163 Soum: lrl-btnglon Stole OF- ofF,-na dMawgement Largest Employers The table below shows a list of the top ten employers ranked by number of employees. Emolover Pasco School District Columbia Basin College Lourdes Health Network Boise Cascade Pasco Processing City of Pasco Douglas Fruit Franklin County Tri -Cities Airport Reser's Fine Foods PAsco AREA MAIoR EMPLOYERS Service/Product Employees Schools — K-12 2,717 Schools — Universities 834 Health Care 635 Manufacturing 575 Frozen Food Processing 400 Government 336 Tree Fruit Grower 280 Government 267 Airport 250 Food Processing 214 Sou Gly ofParra -23- Page 144 of 189 Economic Data Following are additional economic indicators for the City, the County and the Tri -Cities Area. CITY OF PASCO BUILDING PERMITS Commercial/Industrial Permits Residential(') Year Permits Value(2) 2015(l) 547 $22,960 2014 1,525 73,319 2013 1,705 73,701 2012 1,507 85,314 2011 1,817 113,320 Commercial/Industrial Permits Value(2) 119 $21,710 353 90,492 408 51,035 382 56,677 317 20,110 (1) Includes Single Family, Two Family, Three or more families, accessory structures and alterations. (2) Expressed in thousands. (3) As of May 1, 2015. Sown: GO ofPaseo Badifing Department TAXABLE RETAIL SALES (1) Most recent data available. Sosaw Washington State Department of Rer mar Franklin County $1,196,017,085 1,110,256,894 1,037,096,265 1,007,226,336 964,584,879 PERSONAL AND PER CAPITA INCOME City of Year Pasco 20140) $1,016,794,531 2013 933,301,675 2012 861,063,279 2011 839,174,157 2010 825,267,219 (1) Most recent data available. Sosaw Washington State Department of Rer mar Franklin County $1,196,017,085 1,110,256,894 1,037,096,265 1,007,226,336 964,584,879 PERSONAL AND PER CAPITA INCOME (2) Most recent data available. Sowze: U.S. Department afCo me BweaaofEronomnAwlyax Total Permits Franklin County 666 Total Personal Per Capita Year Income ($000's) Personal Income 2013(1) $2,645,389 $30,534 2012 2,587,381 30,164 2011 2,569,484 30,904 2010 2,331,604 29,463 2009 2,136,678 28,689 (2) Most recent data available. Sowze: U.S. Department afCo me BweaaofEronomnAwlyax Total Permits Value(2) 666 $44,670 1,878 163,811 2,113 124,736 1,889 141,991 2,134 133,430 State of Washington Total Personal Per Capita Income ($000's) Personal Income $332,654,857 $47,717 324,458,394 47,055 303,999,485 44,565 286,862,463 42,547 280,943,954 42,137 ESTIMATED MEDIAN HOUSEHOLD INCOME (1) Year Franklin County 20140) $58,188 2013(2) 57,196 2012 56,221 2011 53,644 2010 53,355 Washington State $58,686 57,544 56,444 55,500 54,888 (1) The Revenue Forecast Council's November 2014 forecast of the state personal income is used in the projection of 2013 median household income. (2) In addition to the state personal income data published by BEA, the payroll data compiled by the state Employment Security Department are used in the preliminary estimates of 2010 median household income. Source: Washington State Department of Rememe. -24- Page 145 of 189 RESIDENT CIVILIAN LABOR FORCE AND EMPLOYMENT AND CIVILIAN NON -AGRICULTURE WAGE AND SALARY EMPLOYMENT(t) -25- Page 146 of 189 Annual Average 20150 2014 2073 2012 2011 Kennewick -Richland -Pasco MSA Labor Force 127,320 128,320 129,860 132,440 133,100 Total Employment 19,0400 118,100 118,680 120,640 122,430 Total Unemployment 8,280 10,130 11,180 11,790 10,670 Unemployment Rate 6.5% 7.9% 8.6% 8.9% 8.0% Franklin County Labor Force 37,920 38,240 37,390 38,050 37,870 Total Employment 35,270 35,000 33,930 34,490 34,530 Total Unemployment 2,650 3,240 3,460 3,560 3,340 Unemployment Rate 7.0% 8.5% 9.3% 9.4% 8.8% NAICS INDUSTRY(3) Kennewick -Richland -Pasco MSA Total Nonfarm 106,200 104,300 101,700 101,300 104,000 Total Private 86,800 85,600 83,400 83,100 85,900 Goods Producing 14,500 14,300 13,600 13,400 13,600 Mining Logging & Construction 6,400 6,300 6,200 6,000 6,500 Manufacturing 8,100 8,000 7,400 7,400 7,100 Service Providing 91,700 89,900 88,100 87,900 90,300 Trade, Transportation & Utilities 17,500 18,000 17,500 17,100 16,700 Financial Activities 4,500 4,300 4,200 3,900 3,700 Professional & Business Services 21,200 20,700 20,800 21,700 24,900 Educational & Health Services 14,800 14,400 13,700 13,400 13,300 Leisure & Hospitality 10,000 9,800 9,600 9,500 9,400 Government 19,400 18,600 18,300 18,200 18,100 Workers in Labor/Management Disputes 0 0 0 0 0 (1) Detail may not add to indicated totals due to rounding. Excludes proprietors, agriculture, self-employed, unpaid family, domestic workers and military. Includes all full,and part -tune wage and salary workers receiving pay during the pay period including the 12'" of the month by place of work. (2) Preliminary report as of April 2015. (3) North American Industry Classification System. Sa- Wartingion State Employment Seeunty Department. -25- Page 146 of 189 TAX EXEMPTION Exclusion From Gross Income. In the opinion of Bond Counsel, under existing federal law and assuming compliance by the City with applicable requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issue date of the Bonds, interest on the Bonds will be excluded from gross income for federal income tax plrposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. Continuing Requirements. The City is required to comply with certain requirements of the Code after the date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on investing gross proceeds of the Bonds in higher yielding investments in certain circumstances, and the requirement to comply with the arbitrage rebate requirement to the extent applicable to the Bonds. The City has covenanted in the Bond Ordinance to comply with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not undertaken and does not undertake to monitor the City's compliance with such requirements. Corporate Alternative Minimum Tax. While interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, under Section 55 of the Code, tax exempt interest, including interest on the Bonds, received by corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations (as defined for federal income tax purposes). Under the Code, alternative minimum taxable income of a corporation will be increased by 75% of the excess of the corporation's adjusted current earnings (including any tax exempt interest) over the corporation's alternative minimum taxable income determined without regard to such increase. A corporation's alternative minitnum taxable income, so computed, that is in excess of an exemption of $40,000, which exemption will be reduced (but not below zero) by 25% of the amount by which the corporation's alternative minimum taxable income exceeds $150,000, is then subject to a 20% minimum tax. A small business corporation is exempt from the corporate alternative minimum tax for any taxable year beginning after December 31, 1997, if its average annual gross receipts during the three -taxable -year period beginning after December 31, 1993, did not exceed $5,000,000, and its average annual gross receipts during each successive three - taxable -year period thereafter ending before the relevant taxable year did not exceed $7,500,000. Tax on Certain Passive Investment Income of S Corporations. Under Section 1375 of the Code, certain excess net passive investment income, including interest on the Bonds, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has Subchapter C earnings and profits at the close of the taxable year may be subject to federal income taxation at the highest rate applicable to corporations if more than 25% of the gross receipts of such S corporation is passive investment income. Foreign Braneb Profits Tax. Interest on the Bonds may be subject to the foreign branch profits tax imposed by Section 884 of the Code when the Bonds are owned by, and effectively connected with a trade or business of, a United States branch of a foreign corporation. Possible Consequences of Tax Compliance Audit. The Internal Revenue Service (the "IRS') has established a general audit program to determine whether issuers of tax-exempt obligations, such as the Bonds, are in compliance with requirements of the Code that must be satisfied in order for interest on those obligations to be, and continue to be, excluded from gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS would commence an audit of the Bonds. Depending on all the facts and circumstances and the type of audit involved, it is possible that commencement of an audit of the Bonds could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of its ultimate outcome. Certain Other Federal Tax Consequences Bonds `Not,Quafied Tax -Exempt Obligations' for Fimmial Institutions. Section 265 of the Code provides that 100% of any interest expense incurred by banks and other financial institutions for interest is allocable to tax-exempt obligations acquired after August 7, 1986, will be disallowed as a tax deduction. However, if the tax-exempt obligations are obligations other than private activity bonds, are issued by a governmental unit that, together with all entities subordinate to it, does not reasonably anticipate issuing more than $10,000,000 of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) in the current calendar year, and are designated by the governmental unit as "qualified tax-exempt obligations," only 20% of any interest expense deduction allocable to those obligations will be disallowed. -26- Page 147 of 189 The City is a governmental unit that, together with all subordinate entities, reasonably anticipates issuing more than $10,000,000 of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) during the current calendar year and has not designated the Bonds as "qualified tax-exempt obligations" for purposes of the 80% financial institution interest expense deduction. Therefore, no interest expense of a financial institution allocable to the Bonds is deductible for federal income tax purposes. Reduction of Loss Reserve Deductions for Property and Casualty Insurance Companies. Under Section 832 of the Code, interest on the Bonds received by property and casualty insurance companies will reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15 percent of tax exempt interest received during the taxable year. Effect on Certain Social Security and Retirement Benefits. Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take receipts or accruals of interest on the Bonds into account in determining gross income. Other Possible Federal Tax Consequences. Receipt of interest on the Bonds may have other federal tax consequences as to which prospective purchasers of the Bonds may wish to consult their own tax advisors. Potential Future Federal Tax Lam Changes. From time to time, there are legislative proposals in Congress which, if enacted, could adversely affect the tax treatment market value or marketability of the Bonds. It cannot be predicted whether future legislation may be proposed or enacted that would affect the federal tax treatment of interest received on the Bonds. Prospective purchasers of the Bonds should consult with their own tax advisors regarding any proposed or pending legislation that would change the federal tax treatment of interest on the Bonds. Preservation of Tax Exemption The City has covenanted in the Bond Ordinance that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. RATING Standard & Poor's Rating Services has assigned a rating of "_" to the Bonds. The rating was applied for by the City and certain information was supplied by the City to the rating agency to be considered in evaluating the Bonds. The rating reflects only the view of the rating agency and an explanation of the significance of the rating may be obtained from the rating agency. There is no assurance that the rating will be retained for any given period of time or that the rating will not be revised downward or withdrawn entirely by the rating agency if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of the rating would be likely to have an adverse effect on the market price of the Bonds. CONTINUING DISCLOSURE Basic Undertaking to Provide Annual Financial Information and Notice of Listed Events. To meet the requirements of the United States Securities and Exchange Commission ("SEC') Rule 15c2 -12(b)(5) (the "Rule'), as applicable to a participating underwriter for the Bonds, the City will undertake (the "Undertakitg'� for the benefit of holders of the Bonds to provide or cause to be provided, either directly or through a designated agent, to the Municipal Securities Rulemaking Board ('MSRB'), in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (a) annual financial information and operating data of the type included in this Official Statement as general described below ("annual financial information') and (b) timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 —TEB) or other material notices or determinations with respect to the tax status of the Bonds; (7) modifications to rights of holders of the Bonds, if material; (8) Bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and -27- Page 148 of 189 tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a successor or additional trustee or the change of name of a trustee, if materiaL Type of Annual Financial Information Undertaken to be Provided The annual financial information that the City undertakes to provide will consist of (1) annual financial statements prepared (except as noted in the financial statements) in accordance with generally accepted accounting principles applicable to local governmental units of the State such as the City, as such principles may be changed from time to time, which statements may be unaudited, provided, that if and when audited financial statements are prepared and available they will be provided; (2) principal amount of general obligation bonds outstanding at the end of the applicable fiscal year; (3) assessed valuation for that fiscal year; (4) property tax levy amounts and rates for that fiscal year; and (5) a statement of revenues for that fiscal year from any other revenue sources pledged to the Bonds. The annual financial information will be provided to the MSRB not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2014. The annual financial information may be provided in a single or multiple documents, and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. Amendment of Undertaking. The Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency or the MSRB, under the circumstances and in the manner permitted by the Rule. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. Termination of Undertaking. The City's obligations under the Undertaking will terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under the Undertaking will terminate if those provisions of the Rule which require the City to comply with the Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such termination to the MSRB. Remedy for Failure to Comp# with Undertaking. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Bonds. The sole remedy of any holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking. Prior Compliance with Continuing Disclosure Undertakings. The City previously entered into undertakings under the Rule with respect to certain of its outstanding bonds. In October of 2013, the City discovered that it failed to (1) submit event notices with respect to downgrades to the insured ratings on its Unlimited Tax General Obligation Bonds, 1999, Unlimited Tax General Obligation Refunding Bonds, 2002, and Water and Sewer Revenue Bonds, 2009, and (2) timely file certain financial information as required by undertakings entered into in connection with certain outstanding bonds. The City filed with EMMA event notices with respect to these items on October 30, 2013. The City has otherwise complied in all material respects with the provisions of its various continuing disclosure undertakings, and has taken affirmative action to ensure full compliance with the undertakings by assigning appropriate staff to the tasks and enrolling in the MSRB's a -mail reminder system CERTAIN INVESTMENT CONSIDERATIONS Limitations on Remedies. Any remedies available to the owners of the Bonds are in many respects dependent upon judicial actions, which are in tum often subject to discretion and delay and could be both expensive and time consuming to obtain. If the City fails to comply with its covenants under the Bond Ordinance or to pay principal of or interest on the Bonds, there can be no assurance that available remedies will be adequate to fully protect the -28- Page 149 of 189 interests of the owners of the Bonds. In addition to the limitations on remedies contained in State law, the rights and obligations under the Bonds and the Bond Ordinance may be limited by and are subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, and other laws relating to or affecting creditors' rights, to the application of equitable principles, and to the exercise of judicial discretion in appropriate cases. The legal opinion of Bond Counsel regarding the validity of the Bonds will be qualified by reference to bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium and other similar laws affecting the rights of creditors generally, and by general principles of equity. Bankntptg. A municipality, such as the City, must be specifically authorized under State law in order to seek relief under Chapter 9 of the U.S. Bankruptcy Code (the `Bankruptcy Code'. Chapter 39.64 RCW, entitled the "Taxing Relief Bankruptcy Act," appears to permit any "taxing district" (defined to include any municipality or political subdivision, including cities) to voluntarily petition for relief under the Bankruptcy Code. A creditor cannot bring an involuntarily bankruptcy proceeding against a municipality, including cities. Under Chapter 9, a federal bankruptcy court may not appoint a receiver for a municipality or order the dissolution or liquidation of the municipality. If a municipality filed for bankruptcy, the bankruptcy court would have some discretion with respect to how to treat past and future obligations of such municipality regarding priority of payment to creditors under a plan for adjustment of debt under Chapter 9 of the Bankruptcy Code. INITIATIVE AND REFERENDUM General Under the State constitution, the voters of the State have the ability to initiate legislation and to modify existing statutes through the powers of initiative and referendum. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiatives) and four percent (referenda) of the number of voters registered and voting for the office of Governor at the preceding regular gubernatorial election. Any law approved through the power of initiative by a majority of the voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the Legislature, but thereafter is subject to amendment or repeal by the Legislature in the same manner as other laws. Future Initiatives Initiative petitions affecting tax collections and levy rates (not including the taxes pledged to the repayment of the Bonds) and other matters may be filed in the future. The City cannot predict whether any such initiatives will qualify to be submitted to the voters or, if submitted, will be approved. Likewise, the City cannot predict what actions the Legislature might take, if any, regarding future initiatives approved by voters. LEGAL AND UNDERWRITING Approval of Counsel Legal matters incident to the authorization, issuance and sale of the Bonds by the City are subject to the approving legal opinion of Bond Counsel. The form of the opinion of Bond Counsel with respect to the Bonds is attached as Appendix A. The opinion of Bond Counsel is given based on factual representations made to Bond Counsel, and under existing law, as of the date of initial delivery of the Bonds, and Bond Counsel assumes no obligation to revise or supplement its opinion to reflect any facts or circumstances that may thereafter come to its attention, or any changes in law that may thereafter occur. The opinion of Bond Counsel is an expression of its professional judgment on the matters expressly addressed in its opinion and does not constitute a guarantee of result. Bond Counsel will be compensated only upon the issuance and sale of the Bonds. Financial Advisor A. Dashen & Associates, Bellevue, Washington, serves as financial advisor to the City in conjunction with the issuance of the Bonds (the "Financial Advisor). The Financial Advisor has not audited, authenticated or otherwise verified the information set forth in this Official Statement or any other related information available to the City with respect to the accuracy and completeness of disclosure of such information, and no guaranty, warranty or other representation is made by the Financial Advisor respecting the accuracy and completeness of this Official Statement or any other matter related to this Official Statement. The Financial Advisor is an independent financial advisory firm and is not engaged in the business of underwriting, marketing, trading or distributing municipal securities. -29- Page 150 of 189 Litigation There is no litigation pending or threatened questioning the validity of the Bonds nor the power and authority of the City to issue the Bonds. There is no litigation pending or threatened that would materially affect the finances of the City or affect the City's ability to meet debt service requirements on the Bonds. Conflicts of Interest All or a portion of the fees of the Underwriter, Financial Advisor and Bond Counsel are contingent upon the issuance and sale of the Bonds. In addition, Bond Counsel from time to time serves as counsel to the Underwriter with respect to bonds issued by issuers other than the City. None of the Council members or other officers of the City have any conflict of interest in the issuance of the Bonds that is prohibited by applicable law. Underwriting The Bonds are being purchased by the Underwriter. The purchase contract provides that the Underwriter will purchase all of the Bonds, if any are purchased, at a price of percent of the par value of the Bonds. The Bonds will be reoffered at an average price of percent of the par value of the Bonds. After the initial public offering, the public offering prices may be varied from time to time. Piper Jaffray & Co. and Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, entered into an agreement (the "Agreement') which enables Pershing LLC to distribute certain new issue municipal securities underwritten by or allocated to Piper Jaffray & Co., including the Bonds. Under the Agreement, Piper Jaffray & Co. will share with Pershing LLC a portion of the fee or commission paid to Piper Jaffray & Co. Piper Jaffray & Co. has entered into a distribution agreement ("Distribution Agreement) with Charles Schwab & Co., Inc. ("CS&Co") for the retail distribution of certain securities offerings at the original issue prices. Pursuant to the Distribution Agreement, CS&Co. may purchase Bonds from Piper Jaffray & Co. at the original issue price less a negotiated portion of the selling concession applicable to any Bonds that CS&Co. sells. CONCLUDING STATEMENT So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be construed as representing all conditions affecting the City or the Bonds. Additional information may be obtained from the City. The statements relating to the Ordinance are in summarized form, and in all respects are subject to and qualified in their entirety by express reference to the provisions of such document in its complete form. The agreements of the City are set forth in such documents, and the information assembled herein is not to be construed as a contract with Owners of the Bonds. The preparation and distribution of this Official Statement have been authorized by the City. -30- Page 151 of 189 APPENDIX A FORM OF LEGAL OPINION Page 152 of 189 FP FOSTER PEPPER,,., [FORM OF BOND COUNSEL OPINION] City of Pasco, Washington Re: City of Pasco, Washington, $ Limited Tax General Obligation Bonds, 2015 We have served as bond counsel to the City of Pasco, Washington (the "City"), in connection with the issuance of the above referenced bonds (the "Bonds"), and in that capacity have examined such law and such certified proceedings and other documents as we have deemed necessary to render this opinion. As to matters of fact material to this opinion, we have relied upon representations contained in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation. The Bonds are issued by the City pursuant to Ordinance No. (the "Bond Ordinance") for general City purposes to provide funds to design, construct and equip a new police facility and other capital purposes, as deemed necessary advisable by the City, and to pay the costs of issuance and sale of the Bonds, all as set forth in the Bond Ordinance. Reference is made to the Bonds and the Bond Ordinance for the definitions of capitalized terms used and not otherwise defined herein. We express no opinion herein concerning the completeness or accuracy of any official statement, offering circular or other sales or disclosure material relating to the issuance of the Bonds or otherwise used in connection with the Bonds. Under the Internal Revenue Code of 1986, as amended (the "Code"), the City is required to comply with certain requirements after the date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on investing gross proceeds of the Bonds in higher yielding investments in certain circumstances and the arbitrage rebate requirement to the extent applicable to the Bonds. The City has covenanted in the Bond Ordinance to comply with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could become taxable retroactive to the date of issuance of the Bonds. We have not undertaken and do not undertake to monitor the City's compliance with such requirements. TEL: 206.447.4400 FAx:206.447.9700 UV THIRD AVENUE, Sarre MM SEATTLE, WASHINGTON 98ior-3299 www.FOSTER.com SEATTLE wASHINGH)N SPOKANE WASHINGTON Page 153 of 189 City of Pasco, Washington [Date] Page 2 Based upon the foregoing, as of the date of initial delivery of the Bonds to the purchaser thereof and full payment therefor, it is our opinion that under existing law: 1. The City is a duly organized and legally existing code city under the laws of the State of Washington. 2. The Bonds have been duly authorized and executed by the City and are issued in full compliance with the provisions of the Constitution and laws of the State of Washington and the ordinances of the City relating thereto. 3. The Bonds constitute valid and binding general obligations of the City payable from tax revenue of the City and such other money as is lawfully available and pledged by the City to be levied within the constitutional and statutory limitations provided by law without the assent of the voters, except only to the extent that enforcement of payment may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the application of equitable principles and the exercise of judicial discretion in appropriate cases. 4. Assuming compliance by the City after the date of issuance of the Bonds with applicable requirements of the Code, the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals; however, while interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by corporations is to be taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign corporations with United States branches may be subject to a foreign branch profits tax. We express no opinion regarding any other federal tax consequences of receipt of interest on the Bonds. This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. We bring to your attention the fact that the foregoing opinions are expressions of our professional judgment on the matters expressly addressed and do not constitute guarantees of result. Respectfully submitted, Page 154 of 189 APPENDIX B The Depository Trust Company A subsidiary of The Depository Trust & Clearing Corporation 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully - registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non - U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 0 DTCC® The Depository Trust & Clearing Corporation Page 155 of 189 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (`Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] 6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. (0 DTCC. The Depository Trust & Clearing Corporation Page 156 of 189 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transferthe Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC account. 10. DTC may discontinue providing its services as depository withrespect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. Issuer may decide to discontinue use ofthe system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. 40 OTM The Depository inert & Clearing Corporation Page 157 of 189 APPENDIX C 2013 AUDITED FINANCIAL STATEMENTS Page 158 of 189 May 22, 2015 3:35 pm Prepared by Piper Jaffray & Co. - BPW (Pasco:PASCO-15_I.TGO ) Page 159 of 185 BOND SUMMARY STATISTICS City of Pasco, Washington Limited Tax General Obligation Bonds, Series 2015 Current Market Rates (5.22-15) Dated Date 07/14/2015 Delivery Date 07/14/2015 Last Maturity 12/01/2035 Arbitrage Yield 2.S27104% True Interest Cost (TIC) 2.916817% Net Interest Cost (NIC) 3.123026% All -In TIC 2.980662% Average Coupon 4.000000% Average Life (years) 12.171 Duration of Issue (years) 9.701 Par Amount 7,730,000.00 Bond Proceeds 8,605,317.00 Total Interest 3,763,267.78 Net Interest 2,938,195.78 Total Debt Service 11,493,267.78 Maximum Annual Debt Service 571,600.00 Average Annual Debt Service 563,933.00 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change 2016-2035 Serial Bonds 7,730,000.00 111.324 4.000% 12.171 6,300.45 7,730,000.00 12.171 6,300.45 All -In Arbitrage TIC TIC Yield Par Value 7,730,000.00 7,730,000.00 7,730,000.00 + Accrued Interest - - - + Premium (Discount) 875,317.00 875,317.00 875,317.00 - Underwriter's Discount -50,245.00 -50,245.00 - Cost of Issuance Expense -52,000.00 - Other Amounts - Target Value 8,555,072.00 8,503,072.00 8,60S,317.00 Target Date 07/14/2015 07/14/201S 07/14/2015 Yield 2.916817% 2.980662% 2.527104% May 22, 2015 3:35 pm Prepared by Piper Jaffray & Co. - BPW (Pasco:PASCO-15_I.TGO ) Page 159 of 185 BOND PRICING May 22, 2015 3:35 pm Prepared by Piper Jaffray & Co. - BPW (Pasco:PASCO.15_LTG O) Page 160 of 189 City of Pasco, Washington Limited Tax General Obligation Bonds, Series 2015 Current Market Rates (5-22.15) Maturity Yield to Call Call Premium Bond Component Date Amount Raw Yield Price Maturity Date Price (-Discount) 2016-1035 Serial Bonds: 12/012016 260,000 4.000% 0.680% 104.SS3 - - 11,837.80 11/012017 270,000 4.000% 0980% 107.088 - - 19,137.60 11/01/2018 280,000 4.000% 1.280% 108.969 - - - 25,113.20 ]21012019 290,000 4.000% 1.440% 110.828 - - 31,401.20 12/012020 30S,000 4.000% 1.620% 112.214 - - - 37,2S2.70 12/012021 31$,000 4.000% 1.850% 112.881 - 40,575.15 11/012022 330,000 4.000% 1.950% 114.026 - - - 46,285.80 11/012073 340,000 4.000% 2.090% 114.611 - - - 49,677.40 17/012024 355,000 4.000% 2.180% 115.362 - - - 54,535.10 12/012025 370,000 4.000% 2.300% 115.616 - - - S7,779.20 17/012026 385,000 4.000% 2.430% 114.325 C 2.542% 17/012025 100.000 55,151.25 17/01/2027 400,000 4.000% 2.530% 113.344 C 2.723% 12/012025 100.000 53,376.00 17/01/2028 415,000 4.000% 2.630% 112.372 C 2.879% 17/(112025 100.000 51,343.80 12/012029 435,000 4.000% 2.690% 111.793 C 2985% 12/01/2025 100.000 51,799.55 12/01/2030 450,000 4.000% 2.770% 111.028 C 3.093% 121012025 100.000 49,626.00 121012031 470,000 4.000% 2.830% 110.457 C 3.176% 11/01/2025 100.000 49,147.90 17/012032 485,000 4.000% 2.890% 109.890 C 3.250% 121012025 100.000 47,966.50 11/01/2033 505,000 4.000% 2.930% 109.514 C 3.303% IVOIIZ02S 100.000 48,045.70 17/012034 525,000 4.000% 2970% 109.140 C 3.3SS% 12/012025 100.000 47,985.00 12/012035 545,000 4.000% 3.010% 108.767 C 3.400% 12/01/2025 100.000 47,780.15 7,730,000 875,317.00 Dated Date 07/142015 Delivery Date 07/14201S First Coupon 12/01/2015 Par Amount 7,730,000.00 Premium 875,317.00 Production 8,605,317.00 111.323635% Underwriter's Discount -50,245.00 -OASOD00% Purchase Prim 8,555,072.00 110.673635% Accrued Interest Net Proceeds 8,555,072.00 May 22, 2015 3:35 pm Prepared by Piper Jaffray & Co. - BPW (Pasco:PASCO.15_LTG O) Page 160 of 189 SOURCES AND USES OF FUNDS City of Pasco, Washington Limited Tax General Obligation Bonds, Series 2015 Current Market Rates (5-22-15) Dated Date 07/14/2015 Delivery Date 07/14/2015 Sources: Bond Proceeds: Par Amount 7,730,000.00 Premium 875,317.00 8,605,317.00 Uses: Project Fund Deposits: Project Fund 8,500,000.00 Cost of Issuance: Bond Counsel 30,000.00 S&P Rating Fee 11,000.00 Paying Agent 1,000.00 Financial Advisor 10,000.00 111 Ff Underwriter's Discount: Other Underwriter's Discount 50,245.00 Other Uses of Funds: Additional Proceeds 3,072.00 8,605,317.00 May 22, 2015 3:35 pm Prepared by Piper Jaffray & Co. - BPW (Pasco:PASCO-15_LTGO) Page 161 of 189 BOND DEBT SERVICE City of Pasco, Washington Limited Tax General Obligation Bonds, Series 2015 Current Market Rates (5.22-15) Dated Date 07/14/2015 Delivery Date 07/14/2015 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 12/01/2015 - - 117,667.78 117,667.78 117,667.78 06/01/2016 - - 154,600.00 154,600.00 - 12/01/2016 260,000 4.000% 154,600.00 414,600.00 569,200.00 06/01/2017 - - 149,400.00 149,400.00 - IV012017 270,000 4.000% 149,400.00 419,400.00 568,800.00 06/01/2018 - - 144,000.00 144,000.00 - 12/01/2018 280,000 4.000% 144,000.00 424,000.00 568,000.00 06/01/2019 - - 138,400.00 138,400.00 - 12/01/2019 290,000 4.000% 138,400.00 428,400.00 566,800.00 06/01/2020 - - 132,600.00 132,600.00 - IV012020 305,000 4.000% 132,600.00 437,600.00 570,200.00 06/01/2021 - - 126,500.00 126,500.00 - 12/01/2021 315,000 4.000% 126,500.00 441,500.00 568,000.00 06/01/2022 - - 120,200.00 120,200.00 - 12/01/2022 330,000 4.000% 120,200.00 450,200.00 570,400.00 06/01/2023 - - 113,600.00 113,600.00 - 12/01/2023 340,000 4.000% 113,600.00 453,600.00 567,200.00 06/012024 - - 106,800.00 106,800.00 - 12/01/2024 355,000 4.000% 106,800.00 461,800.00 568,600.00 06/012025 - - 99,700.00 99,700.00 - 12/012025 370,000 4.000% 99,700.00 469,700.00 569,400.00 06/012026 - - 92,300.00 92,300.00 - 12/01/2026 385,000 4.000% 92,300.00 477,300.00 569,600.00 06/01/2027 - - 84,600.00 84,600.00 - 12/01/2027 400,000 COW% 84,600.00 484,600.00 569,200.00 06/01/2028 - - 76,600.00 76,600.00 - 12/012028 415,000 4.000% 76,600.00 491,600.00 568,200.00 06/012029 - - 60.00 8,30 68,300.00 - 12/Ol/2029 435,000 4.000% 68,300.00 503,300.00 571,600.00 06/012030 - - 59,600.00 59,600.00 - 12/01/2030 450,000 4.000% 59,600.00 509,600.00 569,200.00 06/01/2031 - - 50,600.00 50,600.00 - 12/01/2031 470,000 4.000% 50,600.00 520,600.00 571,200.00 06/01/2032 - - 41,200.00 41,200.00 - 12/01/2032 485,000 4.000% 41,200.00 526,200.00 567,400.00 06/01/2033 - - 31,500.00 31,500.00 - 12/01/2033 505,000 4.000% 31,500.00 536,300.00 568,000.00 06/01/2034 - - 21,400.00 21,400.00 - 12/01/2034 525,000 4.000% 21,400.00 546,400.00 567,800.00 06/01/2035 - - 10,900.00 10,900.00 - 12/01/2035 545,000 4.000% 10,900.00 555,900.00 566,800.00 7,730,000 3,763,267.78 11,493,267.78 11,493,267.78 May 22, 2015 3:35 pm Prepared by Piper Jaffray & Co. - BPW (Pasco:PASCO-15_LTGO) Page 162 of 189 AGENDA REPORT FOR: City Council June 12, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 FROM: Rick Terway, Director Administrative & Community Services SUBJECT: Consideration of Purchase and Sale Agreement regarding sale of Senior Center Property to Pasco School District I. REFERENCE(S): Purchase and Sale Agreement Map H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve the Purchase and Sale Agreement between the City of Pasco and Pasco School District #1 for the sale of the Pasco Senior Center and, further, authorize the City Manager to execute the agreement. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: One of the City Council's stated goals for 2014-2015 was to "provide an appropriate sized and located Senior Center, to replace the current Senior Center." The goal was amended earlier this year to "Community Center" with a senior activities element, rather than a "Senior Center." V. DISCUSSION: Part of the strategy to fund and sustain a new Community Center is to liquidate the current Senior Center facility. While a solid structure, from a logistical and programming standpoint, the current structure is not sustainable as a senior center or a community center. Late in 2014 the Pasco School District approached the City about purchase of the building. The District would repurpose the structure for education purposes. Over the last several months, staff has negotiated with the District on the sale of property, along with the lot located east of the property adjacent to Brown Street (see attached map). Page 163 of 189 A Purchase and Sale Agreement (PSA) has been agreed to, subject to approval by the City Council. The highlights of the PSA are as follows: Purchase price - The District agrees to pay $1,235,000, with no contingency for the properties. The District agrees to accept the building and real property in an "as -is" condition. Closing costs for the transaction will be divided equally between the City and the District. The City is not responsible for any commissions due under the terms of the Agreement. Continued use of the building - The city will be allowed to occupy the building until January 2016. This will provide staff with ample time to continue to maintain programming and develop a plan to transition programming for seniors to another location(s) prior to the opening of a new community center. Staff is in the process of preparing a program continuation plan for 2016 so that we can continue to operate the basic health care, craft, dance and other programs currently offered at the center. It will not be possible to offer these activities in one location; utilization of the gym areas and craft rooms in both City Hall and the MLK Center, recreation classrooms in City Hall and Cyber Stop in Kurtzman Park are some examples of where these activities may occur. Staff will be working with senior center clients on an outreach and communication plan to minimize confusion and maximize participation. District feasibility study - The District will be provided 90 days from execution of the Agreement to evaluate and inspect the facility to ensure its usability for the intended purposes. Earnest money — District will deposit $10,000 into an escrow account as earnest money. Upon completion of the feasibility study and District satisfaction, the District will add an additional $40,000 to the escrow account. Staff recommends approval of the Purchase and Sales Agreement. Page 164 of 189 PURCHASE AND SALE AGREEMENT (Senior Citizens Center) THIS PURCHASE AND SALE AGREEMENT (hereinafter "Agreement") is entered into on this _ day of , 2015, by and between the City of Pasco, a Washington Municipal Corporation (hereinafter "City") and the Pasco School District No. 1, a Washington Municipal Corporation (hereinafter "District") for establishing the terms and conditions for the sale of real property and improvements thereon (hereinafter "Property") and legally described as follows: Tax Parcel Nos. 112-152-300, LOT 1, Short Plat 2003-05 and 112-152-299, LOT 2, Short Plat 2003-05 Together with the security cameras, sound system and speakers located on the property, WHEREAS, City is the owner of the above-described real property and improvements thereon, commonly known as the "Senior Citizens Center" located in Franklin County, Washington, which it is willing to sale; and WHEREAS, the District desires to purchase such real property and the improvements thereon under those certain terms and conditions as set forth below; NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows: Purchase and Sale. City agrees to sell, and District agrees to purchase: (a) That certain parcel of real property described above, together with the security cameras, sound system and speakers located on the property; (b) All development rights relating to the real property; (i) all rights to obtain utility service in connection with the real property; (ii) assignable licenses and other governmental permits and permissions relating to the real property and the operation thereof. (c) The land, improvements, and appurtenances which constitute real property are hereafter collectively defined as the "Real Property." All of the Property included by reference within the foregoing paragraphs 1(a) through 1(c), both real and personal, is hereinafter collectively referred to as the "Property." 2. Purchase Price/Financing. The purchase price for the Property and improvements thereon is One Million Two Hundred Thirty -Five Thousand Dollars ($1,235,000.00) paid in cash with no financing contingency. Method of Pa rte. Within ten (10) business days following the last party's execution of this Agreement and delivery of a fully executed original thereof to the other party, District will deposit with an escrow agent (Chicago Title), Ten Thousand and 00/100ths Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1 — Page 1 - (HME — 6-3-15) Page 165 of 189 Dollars ($10,000.00). This initial deposit, together with the additional deposit provided for in Section 4 shall all constitute deposits and shall be held in an interest bearing trust account. All deposits, together with the interest earned in the interest bearing trust account, shall be applied to the purchase price at closing. (a) District agrees that the deposit/eamest money shall be paid to City if the District fails to close this transaction after the District has waived its inspection and feasibility contingency as provided in Section 4 (d) below. (b) City agrees that the initial deposit, together with any interest earned in the interest bearing trust account held by the escrow agent shall be refunded to the District if this Agreement is terminated because the District did not waive the inspection and feasibility contingency as provided in Section 4(d) below, or if this Agreement is terminated due to a default by Seller hereunder. (c) City agrees that the initial deposit and any additional deposit made pursuant to Section 4(e), together with any interest earned in the interest bearing trust account held by the escrow agent shall be refunded to the District if this Agreement is terminated due to a default by the City. (d) At closing, District shall electronically transfer the balance of the purchase price or issue a cashier's check in the amount of the balance of the purchase price to the escrow agent. 4. Inspection and Feasibility Period. (a) District shall have 90 days from the date of the last party's execution of this Agreement within which to conduct an inspection of the Property to determine within its sole discretion the suitability of the Property for its intended purpose. The District, and their authorized agents, contractors, and consultants, shall have the right to go upon the Property at reasonable times for the purpose of inspecting each and every part thereof to determine its present condition and, at District's sole cost and expense, to prepare such reports, tests, and studies as District deems appropriate, including but not limited to surveys, soil tests, engineering studies and environmental tests. Before conducting any invasive or intrusive testing such as borings or test holes, District shall give City at least forty-eight (48) hours prior written notice, and shall coordinate the date and time of such testing to enable City's representatives and/or consultants to be present to take duplicate samples and record the methods used by the District's consultants. (b) District agrees to repair any damage to the Property resulting from any activities of District or his agents or consultants on the Property before closing. District agrees to defend, indemnify and hold the City harmless from any and all damages, expenses, claims, or liabilities (including but not limited to attorney's fees and costs) arising out of any activities of District or his agents or consultants on or about the Property before closing, except to the extent that the same results from the City's negligence. District shall not be liable for any inspection claim Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1 — Page 2 - (HME — 6-3-15) Page 166 of 189 resulting from District's discovery of any pre-existing condition (including, but not limited to, the existence of any hazardous materials) in, on, under or about the Property or any exacerbation of a pre-existing condition in, on, under or about the Property, except to the extent that the exacerbation results from the negligent act or omission of District or his agents or consultants. (c) As -is. Except for those representations and warranties specifically included in this Agreement: (i) City makes no representations or warranties regarding the Property; (ii) City hereby disclaims, and District hereby waives, any and all representations or warranties of any kind, express or implied, concerning the Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous material on site, occupancy rate or any other matter of similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose, tenantability, habitablity and use; (iii) District otherwise takes the Property "AS IS;" and (iv) District represents and warrants to City that the District has sufficient experience and expertise such that it is reasonable for District to rely on its own pre-closing inspections and investigations. The District waives the right to receive a Seller's Disclosure Statement as required by RCW 64.06 relying on its own inspection of the Property. Initials: City Date District Date (d) Feasibility Contingency. The District's obligations under this Agreement are conditioned upon the District's satisfaction in the District's sole discretion concerning all aspects of the Property, including its physical condition; the presence of or absence of any hazardous substances; the availability of government permits and approvals; and the feasibility of the Property for the District's intended purpose. This Agreement shall terminate and the District shall receive a refund of all deposits, together with any accrued interest thereon, unless the District gives written notice to City waiving the Feasibility Contingency prior to the conclusion of the inspection and feasibility period as provided in Section 4(a). If written notice waiving the inspection and feasibility contingency is timely given, the feasibility contingency stated in this Section 4 shall be deemed satisfied, and any deposits made by the District shall become nonrefundable, unless termination of this Agreement is caused by default of the City. (e) In the event the District waives the feasibility contingency as provided in Section 4(d) above, the District shall pay an additional $40,000.00 deposit, which shall be held by the escrow agent pursuant to Section 3. 5. Title. Title to the Property is to be so insurable at closing under terms of the title policy required to be delivered by City under terms of paragraph 6 hereof. All title insurance charges for the policy referenced in paragraph 6 below in the amount of the purchase price shall be paid by the City, except for the cost of any special endorsements requested by District and cancellation fees shall be paid by District, unless termination of this agreement is caused by default of the City. Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 3 - (HME — 6-3-15) Page 167 of 189 6. Preliminary Commitment. Within fifteen (15) days from the last party's execution of this agreement, City shall furnish District with a preliminary report/commitment from Chicago Title for an ALTA owner's policy of title insurance with respect to the Real Property, together with a copy of each document forming the basis for each exception referenced therein. District shall advise City of any title objections within twenty (20) days of its receipt of the report/commitment to remove all exceptions or conditions in the title commitment. If within ten (10) days after its notice to City, District has not received evidence satisfactory to it that such unsatisfactory items can and will be removed at or prior to closing at City's sole cost and expense, then District may elect to (a) terminate this Agreement and receive a full refund of the deposit and any additional deposit, plus interest as set forth in Section 3, (b) waive such defects, or (c) continue this Agreement in effect pending their removal. Removal of unsatisfactory items or their waiver shall be a condition of closing. If District does not make an election within twenty-five (25) days after its notice to City, District shall be deemed to have waived the defects. Title Inspection Period. Within fifteen (15) days following the last party's execution of this Agreement, City shall provide District with the title commitment described in paragraph 6 above, together with all relevant documents relating to the Property, including but not limited to copies of all easements, lot segregation and all other covenants and restrictions with respect to all or portions of the Property; and all existing surveys and other reports and studies relating to the Property or its use or development in the possession of City. 8. Pro -rations. Real Property taxes, assessments, water and other utilities, and all other expenses for the month of closing, shall be prorated as of closing. All expenses, fees and sums owing or incurred for the Property for periods prior to closing shall be paid by City, when and as due. 9. Closing. Closing shall be on January 11, 2016, by Chicago Title Company. By 12:00 p.m. on the closing date: (a) The City will deposit in escrow a duly executed statutory warranty deed covering the Property; a FIRPTA affidavit; and all other documents and monies required of it to close this transaction in accordance with the terms hereof. All such documents shall be in form satisfactory to District's counsel. (b) District will deposit in escrow the monies required of it to close the transaction in accordance with the terms hereof. Time is of the essence in the performance of this Agreement. 10. INTENTIONALLY OMITTED. 11. Closing Costs. All excise, transfer, sales and other taxes, if any, incurred in connection with the sale, recording fees on the deed and the escrow fee shall be equally divided between the parties. The City shall pay the title insurance premium as provided in Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 4 - QA4E — 6-3-15) Page 168 of 189 Section 5. Each party shall bear its own attorneys' fees, except as otherwise expressly provided herein. 12. Possession. The District shall be entitled to possession of the Property on closing, which shall occur on January 11, 2016. 13. Counterparts. This Agreement may be signed in counterparts which, taken together, shall constitute the complete Agreement. 14. Actions During Term. During the term hereof, City shall not enter into any lease or other agreement affecting the Property or its operation, or modify, extend or otherwise change the terms of any lease or other agreement affecting the Property or its operation or otherwise permit any change in the status of title to the Property without District's prior written consent. 15. Assimnent. District may not assign District's interest in this Agreement to any other party or entity without the prior written consent of the City. 16. City's Warranties; Indemnity. City makes the following representations and warranties, which shall be deemed remade as of the closing date: (a) The Property and improvements are not in violation of any applicable covenant, condition or restriction or any applicable statute, ordinance, regulation, order, permit, rule or law, including, without limitation, any building, private restriction, zoning or environmental restriction. (b) Other than the obligations of record, there are no obligations in connection with the Property, which will be binding upon District after closing other than liability for the payment of real estate taxes and utility charges incurred after the date of closing. (c) There are no claims, actions, suits or governmental investigations or proceedings existing or, to the best of City's knowledge, threatened against or involving City or the Property (including, without limitation, any condemnation or eminent domain proceeding or matter related to the formation of or assessment by a local improvement district) and City has received no written notice thereof. (d) All insurance policies now maintained on the Property will be kept in effect, up to and including the closing. City has received no notice from any insurance company or rating organization of any defects in the condition of the Property or of the existence of conditions which would prevent the continuation of existing coverage or would increase the present rate of premium. (e) There are no leases affecting the Property. (f) City shall not be liable for any commissions due to any real estate broker or agent that arise from this Agreement. Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1 — Page 5 - (HME — 6-3-15) Page 169 of 189 (g) To the best of City's knowledge no underground storage tanks are located on the Property. (h) To the best of City's knowledge, no part of the Property has ever been used for a landfill, dump, toxic or other waste disposal site. (i) To the best of City's knowledge, no hazardous or other toxic substances have been released or discharged on the Property. (j) City has the full right and authority to enter into this Agreement and to transfer all of the Property and to consummate or cause to be consummated the transaction contemplated by this Agreement, and all requisite action necessary to authorize City to enter into this Agreement and to carry out its obligations hereunder have been taken and the person signing this Agreement on behalf of City is authorized to do so. (k) All such representations and warranties shall be reaffirmed by City as true and correct as of the Closing Date and shall survive the Closing. If, prior to closing, City becomes aware of any fact or circumstance which would change a representation or warranty, then City shall deliver to District a certificate, dated as of the date of Closing and executed on behalf of City by a duly authorized officer thereof, identifying any representation or warranty which is not, or is no longer, true and correct and explaining the state of facts giving rise to the change, but such notice shall not relieve the City of its obligations hereunder. Subject to any changes identified in any such certificate, City shall be deemed to have made all of the foregoing representations as of closing. 17. Environmental Indemnification. (a) City will defend, indemnify, and hold District and his partners, agents and employees and assignee (collectively, the "Indemnified Parties") harmless from and against any and all claims, obligations, damages, causes of action, costs and expenses, losses, fines, penalties, and liabilities, including, without limitation, attorneys' fees and costs, imposed upon or incurred by or asserted against an Indemnified Party arising out of or in connection with the occurrence of any of the following: (i) prior to closing: (A) any Environmental Matter affecting or relating to the Property arising out of City's use and ownership of the Property; or (B) any violation of any Environmental Law by City with respect to the Property; and (ii) subsequent to closing: (C) the manufacture, storage, sale, use, disposal, release, or discharge of Hazardous Substance in, on or under the Property by City; or (D) any violation of any Environmental Law by City with respect to the Property. City shall also be responsible for all costs, expenses, fines, and penalties arising out of or in connection with the investigation, removal, remediation, clean- up, and restoration work resulting from the matters described in the preceding sentence. City represents that to the best of its knowledge, after reasonable inquiry, it is not aware of any violation of any Environmental Laws relating to the Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1 — Page 6 - (HME — 6-3-15) Page 170 of 189 Property, any Hazardous Materials located on the Property or any Environmental Matter relating to the Property. City's obligations and representations under this Section 22 shall survive closing. (b) "Environmental Laws" shall mean any federal, state or local laws, ordinance, permits or regulations, or any common law, regarding health, safety, radioactive materials or the environment, including but not limited to, the following federal statutes: Clean Air Act (42 U.S. C. §§ 7401 et seq.) ("CAA"), Clean Water Act (33 U.S.C. §§ 1251 et seq.) ("CWA"), Resource Conservation and Recovery Act (42 U.S.C. §§ 6091 et seq.) ("RCRA"), Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C. §§ 9601 et seq.) ("CERCLA"), Emergency Planning and Community Right -To -Know Act (41 U.S.C. §§ 11001 et M.) ("EPCRA" ), Safe Drinking Water Act (42 U.S.C. §§ 300f et seq.) ("SDWA"), Hazardous Material Transportation Act of 1975 (49 U.S.C. §§ 1801 et se .) ("HMTA" ), Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.) ("TSCA"), Endangered Species Act of 1973 (16 U.S.C. §§ 1531 et seq.) ("ESA"), Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. §§ 136 et seq.) ("FIFRA"), the Occupational Safety and Health Act (29 U.S.C. §§ 651 et sea.) ("OSHA"), the Washington Model Toxics Control Act (RCW Chapter 70.150D) ("MTCA" ), or the Hazardous Waste Management Act (RCW Chapter 70.105) ("HWMA"), each as amended, and any regulations promulgated thereunder, guidance and directives issued with respect thereto, or policies adopted by the applicable authorities thereunder. (c) "Hazardous Substances" shall mean: (i) any radioactive materials; (ii) any substance or material the transportation, storage, treatment, handling, use, removal or release of which is subject to any Environmental Law; or (iii) any substance or material for which standards of conduct are imposed under any Environmental Law. Without limiting the generality of the foregoing, "Hazardous Substances" shall include: asbestos and asbestos -containing materials (whether or not friable); urea -formaldehyde in any of its forms; polychlorinated biphenyls; oil, used oil; petroleum products and their by-products; lead-based paint; radon; and any substances defined as "hazardous waste," "hazardous substances," "pollutants or contaminants," "toxic substances," "hazardous chemicals," "hazardous pollutants," or "toxic chemicals" under the CAA, CWA, RCRA, CERCLA, EPCRA, SDWA, HMTA, TSCA, OSHA, MTCA or HWMA. (d) "Environmental Matter" shall mean any of the following: (i) the release of any Hazardous Substance on or at the Property or any other property; (ii) the migration of any Hazardous Substance onto or from the Property; (iii) the environmental, health or safety aspects of transportation, storage, treatment, handling, use or release, whether any of the foregoing occurs on or off the Property, of Hazardous Substances in connection with the operations or past operations of the Property; (iv) the violation, or alleged violation with respect to the Property, of any Environmental Law, order, permit or license of or from any governmental authority, agency or court relating to environmental, health or safety matters; (v) the presence of any underground storage tanks within the Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 7 - (HME — 6-3-15) Page 171 of 189 confines of the Property; (vi) the presence of wetlands within the confines of the Property; (vii) the presence of any endangered species on, in or around the Property; or (viii) soil, groundwater and surface conditions on, in or around the Property which may have an adverse affect upon the use or value of the Property. (e) All provisions in this Section 17 shall survive the closing of this transaction 18. Costs and Expenses. Except as otherwise expressly provided herein, each party hereto will bear its own costs and expenses in connection with the negotiation, preparation and execution of this Agreement, and other documentation related hereto, and in the performance of its duties hereunder. 19. Notices. All notices provided for herein may be delivered in person, sent by commercial overnight courier, telecopied or mailed by U.S. registered or certified mail, return receipt requested, and, if mailed, shall be considered delivered three (3) business days after deposit in such mail. The addresses to be used in connection with such correspondence and notices are the following, or such other address as a party shall from time -to -time direct: City: City of Pasco 525 North 3rd Pasco, WA 99301 Attn: Dave Zabell, City Manager (509) 545-3404 District: Pasco School District No. 1 1215 W. Lewis Street Pasco, WA 99301 Attn: Sarah Thornton Assistant Superintendent of Operations & Legal Affairs (509) 546-2880 Courtesy copy of Notices to: (If mailed) Tippett Company of Washington, LLC PO Box 3027 Pasco, WA 99302 Attn: Kirt Shaffer, Managing Broker (509) 545-3355 (If delivered) Tippett Company of Washington, LLC 2815 Saint Andrews Loop, Suite F Pasco, WA 99301 Attn: Kirt Shaffer, Managing Broker (509) 545-3355 Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 8 - (HME — 6-3-15) Page 172 of 189 20. Miscellaneous. (a) Further Documentation. Each of the parties agrees to execute, acknowledge, and deliver upon request by the other party any document which the requesting party reasonably deems necessary or desirable to evidence or effectuate the rights herein conferred or to implement or consummate the purposes and intents hereof, so long as such imposes no different or greater burden upon such party than is otherwise imposed hereunder. (b) Headings. The headings in this Agreement are for convenience only and do not in any way limit or affect the terms and provisions hereof. (c) Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday. The final day of any such period shall be deemed to end at 5 p.m., Pacific Time. (d) Time of Essence. Time is of the essence of this Agreement. (e) Gender. Wherever appropriate in this Agreement, the singular shall be deemed to refer to the plural and the plural to the singular, and pronouns of certain genders shall be deemed to include either or both of the other genders. (f) Exhibits. The Exhibits referred to herein and attached to this Agreement are incorporated herein as if set forth in full. (g) Unenforceability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the remainder of such provision or any other provisions hereof. (h) Amendment, Modifications. This Agreement may not be altered, amended, changed, waived, terminated or modified in any respect or particular unless the same shall be in writing and signed by or on behalf of the party to be charged therewith. 21. Attorneys' Fees. If any lawsuit or arbitration arises in connection with this Agreement, the substantially prevailing party therein shall be entitled to receive from the losing parry, the substantially prevailing party's costs and expenses, including reasonable attorneys' fees incurred in connection therewith, in preparation therefore and on appeal therefrom, which amounts shall be included in any judgment entered therein. 22. Waiver. A party may, at any time or times, at its election, waive any of the conditions to its obligations hereunder, but any such waiver shall be effective only if contained in writing signed by such party. No waiver shall reduce the rights and remedies of such Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1 — Page 9 - (HME — 6-3-15) Page 173 of 189 party by reason of any breach of any other party. No waiver by any party of any breach hereunder shall be deemed a waiver of any other or subsequent breach. 23. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. 24. Facsimile Signatures. Each party (a) has agreed to permit the use, from time -to -time and where appropriate, of telecopied signatures in order to expedite the transaction contemplated by this Agreement, (b) intends to be bound by its respective telecopied signature, (c) is aware that the other will rely on the telecopied signature, and (d) acknowledges such reliance and waives any defenses to the enforcement of the documents effecting the transaction contemplated by this Agreement based on the fact that a signature was sent by telecopy. 25. Agency Disclosure. At the signing of this Agreement, City represents itself, and the District is represented by Tippett Company of Washington, LLC/Kirt R. Shaffer. All parties acknowledge receipt of the pamphlet entitled "The Law of Real Estate Agency". 26. Confidentiality. Until closing has been consummated, District and City shall follow reasonable measures to prevent unnecessary disclosure of information obtained in connection with the negotiation and performance of this Agreement, EXCEPT AS CITY OR DISTRICT MAY BE REQUIRED TO DISCLOSE INFORMATION ASSOCIATED WITH THIS PURCHASE AND SALE AGREEMENT IN CONJUNCTION WITH THE REQUIREMENTS OF THE WASHINGTON PUBLIC DISCLOSURE ACT. Neither party shall use or knowingly permit the use of any such information in any manner detrimental to the other party. 27. REMEDIES. IF DISTRICT FAILS, AFTER THE REMOVAL OF ITS CONTINGENCIES, AND WITHOUT LEGAL EXCUSE, TO COMPLETE THE PURCHASE OF THE PROPERTY EXCEPT AS PROVIDED HEREIN, THE DEPOSIT SHALL BE FORFEITED TO CITY AS LIQUIDATED DAMAGES AND THE SOLE AND EXCLUSIVE REMEDY TO CITY FOR SUCH FAILURE. IN THE EVENT OF CITY'S DEFAULT, DISTRICT MAY PURSUE ANY REMEDY AVAILABLE AT LAW OR IN EQUITY, INCLUDING SPECIFIC PERFORMANCE. City's Initials District's Initials 28. Entire Agreement. This Agreement and the exhibits hereto constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements, oral or written, express or implied, and all negotiations or discussions of the parties, whether oral or written, and there are no warranties, representations or agreements among the parties in connection with the subject matter hereof except as set forth herein. Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 10 - (HME — 6-3-15) Page 174 of 189 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates noted below. DISTRICT Sarah Thornton Date Assistant Superintendent of Operations & Legal Affairs, Pasco School District No. 1 CITY Dave Zabell, City Manager Attest: Debbie, City Clerk STATE OF WASHINGTON) ) ss. County of Franklin ) Date Approved as to form: Leland Kerr, City Attorney On this _ day of 2015, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared DAVE ZABELL to me known to be the City Manager of the City of Pasco, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument. SUBSCRIBED and sworn to before me this day of Notary Public in and for Residing at My Commission Expires: 2015. the State of Washington, Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 11 - (HME — 6-3-15) Page 175 of 189 STATE OF WASHINGTON) ss. County of ) On this _ day of , 2015, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared SARAH THORNTON to me known to be the Assistant Superintendent of Operations & Legal Affairs of Pasco School District No. 1, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute the said instrument. SUBSCRIBED and sworn to before me this day of 2015. Notary Public in and for the State of Washington, Residing at My Commission Expires: Purchase and Sale Agreement, City of Pasco & Pasco School District No. 1— Page 12 - (HMI — 6-3-15) Page 176 of 189 v AL , K•! lid AGENDA REPORT FOR: City Council June 9, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 FROM: Ahmad Qayoumi, Director Public Works SUBJECT: 20th Avenue Safety Improvements - Lewis Street to Sun Willows Boulevard I. REFERENCE(S): Vicinity Map Federal Highway Safety Improvement Program (HSIP) Grant Award Professional Services Agreement Summary II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve 20th Avenue Safety Improvements Professional Design - Lewis Street to Sun Willows Boulevard Professional Services Agreement with DKS Associates and, further, authorize the City Manager to execute the agreement. HI. FISCAL IMPACT: HSIP Grant Fund - $150,300 Design cost Arterial Street Fund - $6,118 Design cost IV. HISTORY AND FACTS BRIEF: 20th Avenue is a principal north/south transportation corridor in the City. It serves one of the City's larger commercial districts and provides regional access to Columbia Basin College and the Pasco Airport. Based on current traffic counts, approximately 20,000 vehicles travel daily through the 20th Avenue corridor. The corridor also experiences the second highest pedestrian volume, after downtown, for users accessing the college, schools and retail activities. Beginning in 2013, staff identified several areas within the 20th Avenue corridor in need of improvements for both vehicular and pedestrian traffic. Due to Americans with Disabilities Act (ADA) non-compliance, as well as structural and general safety concerns, in June of 2014, the Pasco School District removed the pedestrian overpass on 20th Avenue, north of Pearl Street. Page 178 of 189 Last year, staff applied for a competitive federal safety grant. As a result, on December 31, 2014, the City was awarded $1,373,500 in a Federal HSIP grant for design and safety improvements to the 20th Avenue corridor. Staff has completed the initial preliminary conceptual engineering. A consultant has been selected through the Request for Proposal process to complete the design. Staff interviewed and selected the most qualified consultant to complete the design for the improvements. Construction is expected to be complete by Fall 2016. V. DISCUSSION: In February 2015, staff issued a Request for Proposals for the design of the 20th Avenue Safety Improvements project. The City received proposals from two consultants. Staff subsequently evaluated the proposals, including interviews with each of the design teams. DKS Associates was selected to be the most qualified to complete the design of this project. The project will include the following elements in the design: • Raised medians to provide access management at Lewis Street, Court Street and Sun Willows Boulevard (as currently designed by the City Engineering staff); • Widening at Pearl Street to I-182 (in the vicinity of the recently removed pedestrian overpass); • Traffic signal improvements and ADA ramp improvements at Lewis Street, Sylvester Street, Henry Street, Pearl Street, I-182 Eastbound ramp, I-182 Westbound ramp and Sun Willows Boulevard; • Installation of hybrid pedestrian signals and ADA ramp improvements at Marie Street and Yakima Street; • Traffic signal improvements at Court Street to include the removal of split phasing and the addition of flashing yellow arrow left turn phasing; • Safety analysis to be conducted for the intersections along 20th Avenue between Lewis Street and Sun Willows Boulevard; and • Operational analysis to be conducted for the intersection of 20th Avenue and Court Street to confine the proposed lane configuration changes will operate at an acceptable level of service. While design needs to be more complete before final cost estimates can be prepared, staff is anticipating constructions costs to be approximately $1.2 million. The 2015 budget allocates $600,000 for this project, of which $6,118 will be used for finalizing the design process. The remaining $150,300 needed to complete the design will be funded by the HSIP grant awarded to the City. Staff recommends approval of the Professional Services Agreement with DKS Associates. Page 179 of 189 Page 180 of 189 WSDOT is pleased to advise you that the above mentioned safety project was recently selected. The federal funding is limited to the amount shown below: Project Title: N. 20th Avenue Safety Improvements — W. Lewis Street to Sun Willows Blvd. $1,373,500 Scope: See enclosed Detailed Project Description Note: Safety projects require a 10 percent local match for design and right of way; projects that obtain construction authorization by September 30, 2017, are eligible for 100 percent federal funding for the construction phase. In order to meet state and federal requirements, the following are required: • Projects utilizing federal funds must be included in your current Transportation Improvement Program (TIP) as a complete programmed project. Once your TIP amendment is approved, WSDOT will amend the Statewide Transportation Improvement Program (STIP). • Project expenditures incurred before receiving notice from Local Programs of federal fund obligation are not eligible for reimbursement. • Any changes in scope, schedule, or budget will require approval from HQ Local Programs. • To maintain funding, a Quarterly Project Report form (including schedule, scopes, and budget) must be completed by the end of March, June, September, and December each year. The online database can be found at: hqp://www.wsdot.wa.gov/10calprograms/. To access the database you will need an account name and password. Your account name is Pasco and your password is Pasco408. The password is case sensitive. To obligate funding for the project, please refer to the information above and your Local Agency Guidelines (LAG) manual for additional information. As a reminder, Local Programs encourages all agencies to submit monthly progress billings to ensure timely reimbursement of eligible federal expenditures. For assistance please contact Roger Arms, your Region Local Programs Engineer, at 509.577.1780. KBD:km:sas �Sincerely, Kathleen B. Davis Director Local Programs Enclosure cc: Roger Arms, Region Local Programs Engineer Page 181 of 189 � Washington State Transportation Building Park A Department of Transportation P.O. Boxpl4 300 Avenue S.E. Olympia, WA 98504-7300 Lynn Peterson 360-705-7000 Secretary of Transportation TTY: 1-800-833-6388 December 31, 2014 www.wsdot.wa.gov Mr. Ahmad Oayoumi Public Works Director City of Pasco 525 N. Third Avenue Pasco, Washington 99301 N. 20'h Avenue Safety Improvements — W. Lewis Street to Sun Willows Blvd. FFY 2014 Ciiy Safety Program Federal Highway Safety Improvement Program (HSIP) Funding Dear Mr. O.'& WSDOT is pleased to advise you that the above mentioned safety project was recently selected. The federal funding is limited to the amount shown below: Project Title: N. 20th Avenue Safety Improvements — W. Lewis Street to Sun Willows Blvd. $1,373,500 Scope: See enclosed Detailed Project Description Note: Safety projects require a 10 percent local match for design and right of way; projects that obtain construction authorization by September 30, 2017, are eligible for 100 percent federal funding for the construction phase. In order to meet state and federal requirements, the following are required: • Projects utilizing federal funds must be included in your current Transportation Improvement Program (TIP) as a complete programmed project. Once your TIP amendment is approved, WSDOT will amend the Statewide Transportation Improvement Program (STIP). • Project expenditures incurred before receiving notice from Local Programs of federal fund obligation are not eligible for reimbursement. • Any changes in scope, schedule, or budget will require approval from HQ Local Programs. • To maintain funding, a Quarterly Project Report form (including schedule, scopes, and budget) must be completed by the end of March, June, September, and December each year. The online database can be found at: hqp://www.wsdot.wa.gov/10calprograms/. To access the database you will need an account name and password. Your account name is Pasco and your password is Pasco408. The password is case sensitive. To obligate funding for the project, please refer to the information above and your Local Agency Guidelines (LAG) manual for additional information. As a reminder, Local Programs encourages all agencies to submit monthly progress billings to ensure timely reimbursement of eligible federal expenditures. For assistance please contact Roger Arms, your Region Local Programs Engineer, at 509.577.1780. KBD:km:sas �Sincerely, Kathleen B. Davis Director Local Programs Enclosure cc: Roger Arms, Region Local Programs Engineer Page 181 of 189 Project Summary Program: 2014 City Safety Program Date: December 2014 Agency: City of Pasco Project Title: N. 20th Ave. Safety Improvements — W. Lewis St. to Sun Willows Blvd. Project Number: Not assigned Project Type: Spot location (corridor) Project Description: Lengthen a left turn lane, widen lanes to tie into existing lane widths, install a curbed median and pedestrian hybrid beacons, install accessible countdown pedestrian signals and push buttons, realign crosswalks, upgrade curb ramps, and modify traffic signal phasing. Detailed Project Description: A. Install a curbed median on both legs of N. 201^ Ave. in advance of the following intersections: 1. Sun Willows Blvd. 2. Court St. 3. Lewis St. B. Convert from traditional pedestrian signals to accessible countdown pedestrian signals (signals and pushbuttons) on N. 20th Ave. at the following intersections: 1. Sun Willows Blvd. (8 pedestrian signals) 2. I-82/US 12 WB ramps (4 pedestrian signals) 3. I-82/US 12 EB ramps (2 pedestrian signals) 4. W. Pearl St. (8 pedestrian signals) 5. W. Henry St. (6 pedestrian signals) 6. W. Sylvester St. (8 pedestrian signals) 7. W. Lewis St. (8 pedestrian signals) C. At the following intersections on. N. 20th Ave., remove existing curb ramps and crosswalks. Install crosswalks on a new alignment and install new ADA compliant ramps. 1. Sun Willows Blvd. (includes 8 new ramps) 2. I-82/US 12 WB ramps (includes 4 new ramps) 3. I-82/US 12 EB ramps(includes 2 new ramps) 4. W. Pearl St. (includes 8 new ramps) 5. W. Henry St. (includes 6 new ramps) 6. W. Sylvester St. (includes 8 new ramps) 7. W. Lewis St. (includes 8 new ramps) D. Remove existing curb ramps, install a pedestrian hybrid beacon, and install 4 new ADA compliant curb ramps on N. 20th Ave. at Made St. E. On N. 20th Ave. at Yakima St. remove one existing crosswalk. Remove existing curb ramps. Install a pedestrian hybrid beacon and install 4 new ADA compliant curb ramps. F. At the intersection of N, 20th Ave. and Court St.: 1. Modify the north -south signal heads on N. 20th Ave. to eliminate split phasing. 2. Replace the east -west protected -permitted signal heads on Court. St. with flashing yellow signal operation. 3. Lengthen the north -south left tum lane. G. On N. 201h Ave. between W. Pearl St. and 1-182 where a pedestrian overpass was recently removed: 1. Widen from 10-10'/ foot -wide lanes to 12 foot -wide lanes (the existing lane width on each end of the widening). 2. Widen from 5 foot -wide to 7 foot -wide sidewalks. 3. Remove fixed objects and change to crashworthy features at the edge of the roadway. Page 1 of 2 Page 182 of 189 Project Schedule (Estimated): Project added to local agency Transportation Improvement Plan IP 812014 Project added to regional TIP 10/2014 Project added to Statewide Transportation Improvement Plan STIP 1/2015 Project definition/Begin preliminary engineering PEphase 2/2015 NEPA kickoff 3/2015 Environmental documents approved 6/2015 Right-of-way start NA Right-of-way complete(certification) NA Geometdc/30% design complete 5/2015 General Ian/60%design complete 7/2015 Advertisement 9/2015 Contract awarded 11/2015 Open to traffic (operationally complete) 712016 Project Cost and Award Amount: Phase Total cost 10% local Amount funded Match Amount Amount match from previous provided requested awarded required federal funds (Amount (Does not count funded from toward the local other sources) match Preliminary $167,000 $16,700 $0 $16,700 $150,300 $150,300 En ineerin Ri ht-of-Wa $0 $0 $0 $0 $0 $0 Construction $1,223,200 1 $0* $0 $0* $1,223,200* $1,223,200* Total $1,390,20 $16,700 $0 $16,700 $1,373,500 $1,373,500 *Project must be advertised by September 30, 2017 to waive the 10% local match requirement for the construction phase. Page 2 of 2 Page 183 of 189 Professional Services Agreement (Summary Sheet) Project: 20a' Avenue Safety Improvements — Lewis Street to Sun Willows Blvd. Consultant: DKS Associates Address: 720 SW Washington Street, Suite 500, Portland, OR 97025 Scope of Services: Complete the design for the 20`1' Avenue Safety Improvements project focusing on traffic signal and ADA improvements along the corridor. The improvements include traffic signal improvements and ADA directional ramp improvements at seven locations, hybrid pedestrian signal and directional ADA ramp improvements at two locations traffic signal improvements at Court Street, as well as the design of other upgrades. The proposed tasks include Project Management & Administration. Safety Review and Operations Analysis Traffic Signal Modification Design, Hybrid Beacon Design, Civil Final plans specifications and costs estimate, Traffic Signal Timing Conversions and Bidding Support. Term: 8 months Completion Date: February 28, 2016 Payments to Consultant: ® Hourly Rate: not to exceed $156,418.18 ❑ Fixed Sum of: $ ❑ Other: Insurance to be Provided: 1. Commercial General Liability: ❑ $1,000,000 each occurrence; ❑ $2,000,000 general aggregate; or ® $1,000,000 each occurrence; and $2,000,000 general aggregate 2. Professional Liability: ® $1,000,000 per claim; ❑ $1,000,000 policy aggregate limit; or ❑ $ per claim; and $ per policy aggregate limit Other Information: Signature by: ❑ Mayor ® City Manager Page 184 of 189 FOR: City Council June 1, 2015 TO: Dave Zabell, City Manager Regular Meeting: 6/15/15 FROM: Ahmad Qayoumi, Director Public Works SUBJECT: Process Water Reuse Facility (PWRF) Dam Safety Compliance — Professional Engineering, Geotechnical, and Surveying Services I. REFERENCE(S): Vicinity Map Process Water Reuse Facility Layout Professional Services Agreement Summary H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve the Process Water Reuse Facility Dam Safety Compliance Project Professional Services Agreement with GN Northern, Inc. and, further, authorize the City Manager to execute the agreement. III. FISCAL IMPACT: Food Processor Reuse Fund — not to exceed $90,610 IV. HISTORY AND FACTS BRIEF: On April 21, 2014, the City commenced construction of two ponds, one 35 million gallon (MG) and the other 8 MG at the PWRF to expand the winter storage capacity at the facility. Construction of the ponds necessitated construction of dams, as defined by Washington State Administrative Code (WAC) 173-175-030, which defines a "dam" as any artificial barrier and/or any controlling works, together with appurtenant works that can or does impound or divert water. The City received a compliance letter from the Department of Ecology (Ecology) — Dam Safety Office (DSO) dated December 17, 2014 notifying the City of the need for additional analysis of the 35 million gallon (MG) and 8 MG ponds at the PWRF. WAC 173-175 requires the City to submit plans and specifications and a construction inspection plan for review and approval by the DSO prior to the construction of any dam. To comply with Ecology's DSO requirements, the City sent a Request for Page 185 of 189 Proposals (RFP) for a licensed engineer to conduct the analysis required by Ecology. In February 2015, staff issued a Request for Proposal for professional engineering, geotechnical, and surveying services. The City received two proposals from qualified consultants. Staff subsequently evaluated the proposal and the strengths of both teams and determined GN Northern, Inc. as the consultant most qualified to complete the necessary work. V. DISCUSSION: The project scoping includes: • As -built survey of the 115 MG lagoon and berms and dike in the 5 MG equalization basin; • Limited geotechnical exploration and laboratory testing; and • Stability analyses of the berms of the lined 35 MG and 8 MG ponds and the dike in the 5 MG equalization basin to determine if the as -built berms are stable or if modifications/mitigations are required for dam safety compliance. Staff recommends approval of the Professional Services Agreement with GN Northern. Page 186 of 189 Zjo,pisco R Page 187 of 189 Page 188 of 189 Professional Services Agreement (Summary Sheet) Project: Process Water Reuse Facility (PWRF) Dam Safety Compliance — Professional Engineering, Geotechnical and Surveying Services Consultant: GN Northern, Inc. Address: 2618 W. Kennewick Ave.. Kennewick, WA 99336 Scope of Services: As -built survey of 115 MG lagoon and berms and dike in the 5 MG equalization basin, limited Reotechnical exploration and laboratory testing, stability analyses of the berms of the lined 35 MG and 8 MG ponds and the dike in the 5 MG equalization basin to determine if the as -built berms are stable or if the modifications/mitigations are required for dam safety compliance. Term: Completion Date: December 31, 2015 Payments to Consultant: ® Hourly Rate: not to exceed $90,610 ❑ Fixed Sum of. $ ❑ Other: Insurance to be Provided: 1. Commercial General Liability: ❑ $1,000,000 each occurrence; ❑ $2,000,000 general aggregate; or ® $1,000,000 each occurrence; and $2,000,000 general aggregate 2. Professional Liability: ® $1,000,000 per claim; ❑ $1,000,000 policy aggregate limit; or ❑ $ per claim; and $ per policy aggregate limit Other Information: Signature by: ❑ Mayor ® City Manager Page 189 of 189