HomeMy WebLinkAbout2017.11.20 Council Meeting PacketRegular Meeting
AGENDA
PASCO CITY COUNCIL
7:00 p.m.
November 20, 2017
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.
5 - 8 (a) Approval of Minutes
To approve the Minutes of the Pasco City Council Meeting dated November
6, 2017.
9 - 11 (b) Bills and Communications
To approve claims in the total amount of $2,502,946.42 ($1,152,862.34 in
Check Nos. 219042-219300; $660,824.75 in Electronic Transfer Nos.
818551-818556, 818599-818601; $33,276.41 in Check Nos. 51235-51269;
$653,802.65 in Electronic Transfer Nos. 30113909-30114399; $2,180.27 in
Electronic Transfer Nos. 417-422).
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
$307,859.72 and, of that amount, authorize $230,602.88 to be turned over
for collection.
12 - 18 (c) Contract for Collection Services with Washington Collectors Tri-Cities,
Inc.
To approve the Collection Agency Contract with Washington Collectors Tri-
Cities, Inc., and, further, authorize the City Manager to execute the
document.
(RC) MOTION: I move to approve the Consent Agenda as read.
Page 1 of 95
Regular Meeting November 20, 2017
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
19 (b) General Fund Operating Statement
7. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND
RESOLUTIONS RELATING THERETO:
20 - 24 (a) 2018 Operating & Capital Projects Budget Ordinances - Second
Reading
CONDUCT PUBLIC HEARING
MOTION: I move for the second reading and adoption of Ordinance No.
4362, for the City of Pasco Annual Operating Budget for the Year 2018 and,
further, authorize publication by summary only.
MOTION: I move for the second reading and adoption of Ordinance No.
4363, for the City of Pasco Capital Projects Budget for the Year 2018 and,
further, authorize publication by summary only.
8. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS:
25 - 33 (a) Code Amendment: Amending PMC 26.28 to Allow Administrative
Approval of Final Plats (MF# CA 2017-007)
MOTION: I move to adopt Ordinance No. 4366, an ordinance amending
PMC Title 26.28 allowing administrative approval of Final Plats, and
further, authorize publication by summary only.
34 - 69 (b) Revenue Bonds for Waterworks Utility
Page 2 of 95
Regular Meeting November 20, 2017
MOTION: I move to adopt Ordinance No. 4365 relating to the waterworks
utility of the City, including the sanitary sewerage system and the system of
storm or surface water sewers as a part thereof; specifying, adopting and
ordering the carrying out of a system or plan of additions to and betterments
and extensions of the waterworks utility of the City; providing for the
issuance of one or more series of water and sewer revenue bonds of the City
in an aggregate principal amount of not to exceed $10,000,000 for the
purpose of providing the funds necessary (a) to pay all or a portion of the
costs of carrying out the plan of additions, (b) to make a deposit to the debt
service reserve account as needed, (c) to refund and redeem outstanding
water and sewer revenue bonds of the City and (d) to pay the costs of
issuance and sale of the bonds and the administrative costs of the refunding;
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.
9. UNFINISHED BUSINESS:
10. NEW BUSINESS:
70 - 86 (a) Property Purchase
MOTION: I move to approve the Purchase and Sale Agreement with the
Pasco School District for 20.32 acres located north of Court Street, between
Roads 48-52 and, further, authorize the City Manager to execute all
necessary documents.
87 - 95 (b) * Bid Award: Oregon Avenue (SR 397) Corridor Improvements, Phase
1, No. 12002
(RC) MOTION: I move to award the Oregon Avenue (SR 397) Corridor
Improvements Phase 1 project to Culbert Construction, Inc. of Pasco,
Washington in the amount of $6,622,707.52 and, further, authorize the City
Manager to execute the contract documents.
11. MISCELLANEOUS DISCUSSION:
12. EXECUTIVE SESSION:
13. ADJOURNMENT.
(RC) Roll Call Vote Required
* Item not previously discussed
Q Quasi-Judicial Matter
Page 3 of 95
Regular Meeting November 20, 2017
MF# “Master File #....”
REMINDERS:
City Hall will be closed Thursday and Friday, November 23 and 24 for the Thanksgiving
Holiday. The next meeting of the City Council will be Monday, November 27.
This meeting is broadcast live on PSC-TV Channel 191 on Charter Cable and streamed
at www.pasco-wa.gov/psctvlive.
Audio equipment available for the hearing impaired; contact the Clerk for assistance.
Page 4 of 95
AGENDA REPORT
FOR: City Council November 9, 2017
TO: Dave Zabell, City Manager Regular Meeting: 11/20/17
FROM: Daniela Erickson, City Clerk
Administrative & Community Services
SUBJECT: Approval of Minutes
I. REFERENCE(S):
Minutes 11.06.17
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve the Minutes of the Pasco City Council Meeting dated November 6, 2017.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 5 of 95
REGULAR MEETING
MINUTES
PASCO CITY COUNCIL NOVEMBER 6, 2017
CALL TO ORDER:
The meeting was called to order at 7:00 p.m. by Matt Watkins, Mayor.
ROLL CALL:
Councilmembers present: Chi Flores, Rebecca Francik, Robert Hoffmann, Tom
Larsen, Saul Martinez, Matt Watkins and Al Yenney.
Staff present: Dave Zabell, City Manager; Stan Strebel, Deputy City Manager;
Leland Kerr, City Attorney; Richard Terway, Interim Public Works Director;
Rick White, Community & Economic Development Director; Richa Sigdel,
Finance Director; Dan Dotta, Interim Administrative & Community Services
Director; Bob Metzger, Police Chief; Bob Gear, Fire Chief and Michael Morales,
Economic Development Program Manager.
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 October 16,
2017 and the Special Meeting dated October 30, 2017.
Bills and Communications
To approve claims in the total amount of $4,462,502.61 ($2,145,926.43 in Check
Nos. 218718-219041; $918,329.59 in Electronic Transfer Nos. 817996-818134,
818141-818193, 818195-818429, 818493-818495; $72,406.68 in Check Nos.
51155-51234; $1,325,839.91 in Electronic Transfer Nos. 30112907-30113908).
DAHP Grant for Survey of African American Properties in Pasco (MF#
HIST 2017-002)
To authorize the City Manager to execute the Washington State Department of
Archaeology and Historic Preservation Grant Contract.
Tourism Promotion Area
To approve the 2018 Marketing Plan and Operating Budget for the Tourism
Promotion Area in the total amount of $1,421,663.
Dedication Deed: Right-of-Way for a Portion of Burns Rd (MF# DEED
2017-009)
To accept the deed from Leticia Rebolledo and Oscar Avalos for a portion of the
Burns Road right-of-way.
MOTION: Ms. Francik moved to approve the Consent Agenda as read. Mr.
Yenney seconded. Motion carried by unanimous Roll Call vote.
Page 1 of 3 Page 6 of 95
REGULAR MEETING
MINUTES
PASCO CITY COUNCIL NOVEMBER 6, 2017
VISITORS - OTHER THAN AGENDA ITEMS:
Gabriel Portugal, 804 Road 52, commented on the proposed budget and thanked
Councilmembers for their service.
REPORTS FROM COMMITTEES AND/OR OFFICERS:
Mr. Martinez reported on the Hanford Communities Governing Board meeting
and the Chapel Hill neighborhood meeting concerning a new park being
developed in their area.
Mr. Yenney noted the Veterans Day Parade in West Richland will take place
Saturday, November 11.
Ms. Francik, Mr. Flores and Mayor Watkins attended the grand opening of the
Auto Zone Distribution Center.
Mr. Hoffmann reported on the Franklin County Mosquito Control District Board
meeting.
HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO:
2018 Operating & Capital Projects Budget Ordinances - First Reading
Mr. Zabell explained the details of the proposed 2018 Budgets.
Mayor Watkins declared the Public Hearing open to consider the proposed 2018
Operating and Capital Projects Budgets.
Gabriel Portugal, 805 Road 54, inquired about the plans for the Peanuts
Park/Farmer's Market area.
Following three calls for comments, Mayor Watkins declared the Public Hearing
closed.
MOTION: Ms. Francik moved for the first reading of Ordinance No. 4362, for
consideration of the City of Pasco Annual Operating Budget for the Year 2018.
Mr. Yenney seconded. Motion carried unanimously.
MOTION: Ms. Francik moved for the first reading of Ordinance No. 4363, for
consideration of the City of Pasco Capital Projects Budget for the Year 2018. Mr.
Yenney seconded. Motion carried unanimously.
Second reading of the budget ordinances, public hearing, and adoption are
scheduled for the November 20th regular meeting.
ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS:
Rezone: Kidwell Rezone, I-1 to I-2 (MF# Z 2017-005)
Mr. White explained the details of the proposed ordinance.
MOTION: Ms. Francik moved to adopt Ordinance No. 4364, rezoning Lot 4,
Binding Site Plan 2016-06 from I-1 (Light Industrial) to I-2 (Medium Industrial),
and further, authorize publication by summary only. Mr. Yenney seconded.
Motion carried unanimously.
Page 2 of 3 Page 7 of 95
REGULAR MEETING
MINUTES
PASCO CITY COUNCIL NOVEMBER 6, 2017
Special Permit: Church in a C-3 Zone (MF# SP 2017-012)
Council and staff discussed the details of the proposed resolution.
MOTION: Ms. Francik moved to approve Resolution No. 3801, approving a
special permit for the location of a church in a C-3 zoning district at 3330 West
Court Street, as recommended by the Planning Commission. Mr. Martinez
seconded. Motion carried unanimously.
Preliminary Plat: Preakness Ridge (MF# PP 2017-008)
Council and staff discussed the details of the proposed resolution.
MOTION: Ms. Francik moved to approve Resolution No. 3802, approving the
Preliminary Plat for Preakness Ridge. Mr. Martinez seconded. Motion carried 6-
1. No - Yenney.
MISCELLANEOUS DISCUSSION:
Mr. Martinez thanked everyone involved in the organization of the WIAA Cross
Country Championship held last weekend at Sun Willows Golf Course.
Mr. Zabell added that the event is a partnership with PSD No. 1 and City of Pasco
with 1800 students from 448 schools participating, some as far away as Sequim
and Orcas Island. The economic impact to the area is estimated at $990,000.
Mr. Zabell also noted the Recreation division has partnered with Kennewick and
Richland to host a booth at Visit Tri-Cities "Tourism Showcase" and the National
Citizens Survey is being mailed out to citizens in the coming weeks.
ADJOURNMENT:
There being no further business, the meeting was adjourned at 7:46 p.m.
APPROVED: ATTEST:
Matt Watkins, Mayor Daniela Erickson, City Clerk
PASSED and APPROVED this 20th day of November, 2017
Page 3 of 3 Page 8 of 95
AGENDA REPORT
FOR: City Council November 16, 2017
TO: Dave Zabell, City Manager Regular Meeting: 11/20/17
FROM: Richa Sigdel, Director
Finance
SUBJECT: Bills and Communications
I. REFERENCE(S):
Accounts Payable 11.20.17
Bad Debt Write-off Collection 10.31.17
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve claims in the total amount of $2,502,946.42 ($1,152,862.34 in Check Nos.
219042-219300; $660,824.75 in Electronic Transfer Nos. 818551-818556, 818599-
818601; $33,276.41 in Check Nos. 51235-51269; $653,802.65 in Electronic Transfer
Nos. 30113909-30114399; $2,180.27 in Electronic Transfer Nos. 417-422).
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 $307,859.72 and, of that amount,
authorize $230,602.88 to be turned over for collection.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 9 of 95
November 20, 2017
Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined
Check Numbers 219042-219300 51235-51269
Total Check Amount $1,152,862.34 $33,276.41 Total Checks 1,186,138.75$
Electronic Transfer Numbers 818551-818556 30113909-30114399 417-422
818599-818601
Total EFT Amount $660,824.75 $653,802.65 $2,180.27 $0.00 Total EFTs 1,316,807.67$
Grand Total 2,502,946.42$
Councilmember
430,831.89
3,810.92
0.00
6.07
11,853.96
0.00
0.00
1,114.00
18,640.69
587.01
741.45
49,709.89
875.77
584.96
112,234.00
1,108.81
29,819.82
909.11
927.00
0.00
0.00
10,707.05
0.00
0.00
28,187.90
376,208.17
44,338.17
17,467.79
0.00
0.00
159,518.17
0.00
150.00
1,202,613.82
GRAND TOTAL ALL FUNDS:2,502,946.42$
EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL
EQUIPMENT RENTAL - REPLACEMENT BUSINESS
MEDICAL/DENTAL INSURANCE
OLD FIRE OPEB
FLEX
PAYROLL CLEARING
STADIUM/CONVENTION CENTER
LID
GENERAL CAP PROJECT CONSTRUCTION
UTILITY, WATER/SEWER
EQUIPMENT RENTAL - OPERATING GOVERNMENTAL
EQUIPMENT RENTAL - OPERATING BUSINESS
SPECIAL ASSESSMENT LODGING
LITTER ABATEMENT
REVOLVING ABATEMENT
TRAC DEVELOPMENT & OPERATING
PARKS
ECONOMIC DEVELOPMENT
ATHLETIC PROGRAMS
GOLF COURSE
SENIOR CENTER OPERATING
MULTI-MODAL FACILITY
SCHOOL IMPACT FEES
RIVERSHORE TRAIL & MARINA MAIN
C.D. BLOCK GRANT
HOME CONSORTIUM GRANT
NSP GRANT
MARTIN LUTHER KING COMMUNITY CENTER
AMBULANCE SERVICE
CEMETERY
Councilmember
SUMMARY OF CLAIMS BY FUND:
GENERAL FUND
STREET
ARTERIAL STREET
STREET OVERLAY
City of Pasco, Franklin County, Washington
We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as
described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim.
Dave Zabell, City Manager Richa Sigdel, Finance Director
We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this
20th day of November, 2017 that the merchandise or services hereinafter specified have been received and are approved for payment:
C I T Y O F P A S C O
Council Meeting of:
Accounts Payable Approved
The City Council
Page 10 of 95
BAD DEBT WRITE-OFF/COLLECTION
October 1 – October 31, 2017
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.
Direct
Write-off
Referred to
Collection
Total
Write-off
Utility Billing $ 64.00 .00 64.00
Ambulance $ 77,192.84 14,895.88 92,088.72
Court A/R $ .00 212,706.00 212,706.00
Code Enforcement $ .00 2,951.00 2,951.00
Cemetery $ .00 .00 .00
General $ .00 50.00 50.00
Miscellaneous $ .00 .00 .00
TOTAL: $ 77,256.84 230,602.88 307,859.72
Page 11 of 95
AGENDA REPORT
FOR: City Council November 14, 2017
TO: Dave Zabell, City Manager Regular Meeting: 11/20/17
FROM: Stan Strebel, Deputy City Manager
Executive
SUBJECT: Contract for Collection Services with Washington Collectors Tri-Cities, Inc.
I. REFERENCE(S):
Proposed Contract (Note: since the meeting of 11/13/17, minor corrections and
clarifications have been made to the agreement)
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve the Collection Agency Contract with Washington
Collectors Tri-Cities, Inc., and, further, authorize the City Manager to sign the
document.
III. FISCAL IMPACT:
The contract provides that the City will receive its full principal amount, plus interest
(50%) on collected amounts. The collection agency fees (40%) are added to principal
amounts and payable to the collection agency. The collection agency receives the other
50% of interest collected.
IV. HISTORY AND FACTS BRIEF:
The City has had a contract with Washington Collectors, a Pasco business, for many
years for the collection of its delinquent accounts and other unpaid bills. The City
most recently entered into a five-year collection agreement in 2013. The current
proposal is also for a five-year agreement (2018-2022). This agreement covers
collection needs for Municipal Court as well as the Finance Department.
In 2013, staff worked with Washington Collectors to update and clarify contract
language and procedures. Collection agencies must follow procedures set out in state
law.
V. DISCUSSION:
Page 12 of 95
This item was discussed at the November 13 Workshop meeting; minor corrections
have been made to the proposed agreement since the workshop meeting. Staff
recommends approval of the contract.
Page 13 of 95
CITY OF PASCO
COLLECTION AGENCY CONTRACT
THIS CONTRACT is made and entered into by and between,the City of Pasco,a municipal
corporation of the State of Washington,hereinafter referred to as “City”,and Washington Collectors
Tri~Cities,Inc.,a collection agency duly licensed under and pursuant to the laws of the State of
Washington,hereinafter referred to as “Agent”.
RECITALS:
WHEREAS,City desires Agent to undertakethe collection of delinquent accounts from time to time
in the manner and under the terms and conditions hereinafter set forth;and
WHEREAS,the parties contemplate a future course of dealing as City and Agent,and desire to set
forth and de?ne herein the mutual rights,obligations,and liabilities of the parties hereto in such
course of dealings;
NOW,THEREFOR,in consideration of the promises and of the mutual agreements of the parties
hereto,it is hereby agreed as follows:
1.AGENT APPOINTED:
City hereby appoints Agent as its agent to collect and receive for the City all sums of money due and
payable to the City of Pasco for debts which the City lists with the Agent.
2.COMPLIANCE WITH LAW:
Agent shall comply with the collection laws of the State of Washington and Public Law 95-109 (Fair
Debt Collection Practices Act)and all Federal regulations and laws governing collections,including
those mandated under the Health Insurance Portability and Accountability Act (HIPAA).New
legislation affecting City or Agent with respect to terms and conditionsof this contract shall be made
a part of this contract by notice of either party to the other and in all cases compliance with the
statute on its effective date shall be implemented until such time as an addendum to the contract can
be written.
3.DEFINITIONS:
A.“City”means the City of Pasco and all of its departments and divisions,including,
but not limited to the Finance Division and the Municipal Court.
B.“Collections”means monies collected from Debtor by Agent after date on which
Agent acknowledges receipt of the account.Remittance statements for collections
will show amounts for principal,contingent fees and interest separately,
Page 1 of 5
Page 14 of 95
C.“Court”means the City of Pasco Municipal Court.
D.“Debt”means unpaid amounts owed to the City including,but not limited to,utility
billings,ambulance billings,cemetery or other miscellaneous billings referred by the
Finance Division,plus unpaid infractions,criminal ?nes,civil judgments,and other
costs,assessments and forfeitures that have been imposed by the Court.
E.“Direct Payments”means the City receives money due from debtor.
F.“Debtor”means any individual,partnership,corporation or other entity which owes
money to City.
G.“Contingent F ees”means money due Agent from the City in payment for collection
services rendered,pursuant to RCW l9.l6.500.
4.TERM:
This Contract shall continue in effect for a period beginning January 1,2018 and ending December
31,2022,unless earlier terminated as provided for in Section 10 of this contract.
5.COMPROMISE SETTLEMENT:
Agent shall not accept any compromise settlement of principal amounts due the City without prior
approval of the City.
City shall not accept any compromise settlement of contingent fees and/or interest due the Agent
without prior consultation with the Agent.
After a case has been listed with Agent for in excess of 30 days,City will limit requests for account
cancellations to special circumstances (such as error,failure of reasonable notice,or Court-ordered
vacation of legal ?nancial obligations (LGO)as required by Richland v.Wake?eld)and prior
consultation with the Agent.
6.RELATIONSHIP OF PARTIES:
Agent is an independent contractor and nothing contained in this contract shall be construed as
constituting Agent as servant,agent or employee of City.Agent is solely responsible for the
employment,acts and omissions,control and direction of its employees.
7.INDEMNIFICATION:
Agent shall indemnify and save City harmless from any and all claims,demands,or causes of action
asserted against City,arising out of or in any way connected with the collection activities of Agent
on accounts referred to Agent by City,except due to the sole negligence of the City.
Page 2 of 5
Page 15 of 95
8.DESCRIPTION OF SERVICES:
Agent’s services to be provided under the following conditions:
A.All costs associated with pre-collection and collection,including postage,supplies,
and staff,will be provided by Agent.
Pre-collection services and monies collected during pre-collection are not subject to
contingent fees.No monies will be collected by Agent during pre-collection.All
payments during pre-collection shall be forwarded to the City.
Monies collected during regular collection will be subject to contingent fees and
reported as applicable to the City Finance Division and remitted on a semi-monthly
(by the 15"‘and 31“of each month respectively)basis or reported as applicable to the
Court and remitted on a monthly basis.In both cases,remittance statements will
show principal amounts and contingent fees separately.Interest postings will be
remitted monthly on a separate statement.
In all cases where the Revised Code of Washington (RCW 19.16500)allows
contingent fees,such contingent fees will be added to the account balance pursuant to
statute,at a rate of 40%,after pre-collection.Interest collect shall be split equally
between the City and Agent.
Direct contact with Debtors will be by trained collection staff.
Agent will advance legal costs and have an attorney on retainer.
Agent will provide reports and a Variety of specialize reports monthly.Semi—annual
and annual recaps of performance,for all types of accounts,will also be provided.
The License Restoration Program and its process will be at the discretion of Agent,
subject to the Court’s approval of the Agent’s policies and procedures.City shall
not waive or reduce Agent’s processing fee without consultation with the Agent.
If the City accepts payment on any account which has been listed with Agent.City
will forward payment to Agent to be applied accordingly.
In cases where payment is made by personal check,posting to release the hold will be
made when the check clears.
In cases where there is a hold (i.e.a “DOL”adjudication hold,a water lien or other)
the hold will remain in place until all principal,contingent fees and interest are
satis?ed.
Page 3 of 5
Page 16 of 95
9.KEY CONTACT PERSONS:
The authorized contact personnel for the City are:
0 Finance Division
0 Richa Sigdel,Financial Services Manager;
0 Stephanie Brock,Customer Service/Utility Billing Manager;
0 Tami Hewett,Accounts Receivable Clerk
I Municipal Court
0 Dot French,Municipal Court Administrator
The key contact personnel for Agent are:
0 Marcie Grace
-Jeana Mathews
10.EARLY TERMINATION:
Either party may at any time cause this contract to terminate without cause,upon giving ninety (90)
days written notice to the other party.The contract shall terminate at the end of the ninety days.
11.ASSURANCE OF NON-DISCRIMINATION:
Agent hereby con?rms,agrees to,and assures compliance with non-discriminatory practices
consistent with Titles VI and VII of the 1964 Civil Rights Act as amended in 1972;Executive Order
11246 as amended by Executive Order 11375;Sections 503 and 504 of the Rehabilitation Act of
1975 and the Age Discrimination in Employment Act of 1967;the 1974 Vietnam Era Veteran
Readjustment Assistance Act;and the Washington State Laws Against Discrimination,Chapter 490
RCW.
Page 4 of 5
Page 17 of 95
Is“WM ,2017.
WASHINGTON COLLECTORS TRI-CITIES,INC.
iéamw
SEAN LAMB U
President
Approved and executed on the ,day of
Approved and executed on the ,day of ,2017.
CITY OF PASCO
Dave Zabell
City Manager
ATTEST APPROVED AS TO FORM:
Daniela Erickson,City Clerk Lee Kerr,City Attorney
Page 5 of 5
Page 18 of 95
APPROVED YTD % OF ADOPTED YTD % OF
2016 2016 ANNUAL 2017 2017 ANNUAL
BUDGET ACTUAL BUDGET BUDGET ACTUAL BUDGET
REVENUE SOURCES:
TAXES:
PROPERTY 7,655,000$ 5,678,612$ 74.2%7,825,655$ 5,780,720$ 73.9%
SALES 11,807,000 10,205,753 86.4%13,275,000 10,954,864 82.5%
PUBLIC SAFETY 1,365,000 1,181,820 86.6%1,400,000 1,245,052 88.9%
UTILITY 9,228,000 7,349,981 79.6%8,892,000 7,830,947 88.1%
OTHER 1,158,000 1,087,517 93.9%1,204,000 1,138,712 94.6%
LICENSES & PERMITS 1,743,400 1,820,713 104.4%2,121,964 1,997,677 94.1%
INTERGOV'T REVENUE 2,151,648 1,798,810 83.6%2,123,737 1,880,452 88.5%
CHARGES FOR SERVICES 6,508,414 5,382,000 82.7%6,279,131 5,354,347 85.3%
FINES & FORFEITS 879,800 629,462 71.5%872,100 659,639 75.6%
MISC. REVENUE 493,440 468,986 95.0%498,260 481,975 96.7%
DEBT AND TRANSFERS IN 1,268,000 119,170 9.4%638,000 605,840 95.0%
TOTAL REVENUES 44,257,702 35,722,824 80.7%45,129,847 37,930,225 84.0%
BEGINNING FUND BALANCE 17,289,115 17,289,115 14,633,214 14,633,214
TOTAL SOURCES 61,546,817$ 53,011,939$ 86.1%59,763,061$ 52,563,439$ 88.0%
EXPENDITURES:
CITY COUNCIL 113,338$ 88,227$ 77.8%111,975$ 90,207$ 80.6%
MUNICIPAL COURT 1,666,508 1,306,448 78.4%1,544,115 1,190,228 77.1%
CITY MANAGER 1,444,191 1,190,630 82.4%1,627,585 1,412,547 86.8%
POLICE 15,012,148 11,679,331 77.8%16,240,559 12,811,392 78.9%
FIRE 5,545,292 4,593,709 82.8%7,593,061 6,166,743 81.2%
ADMIN & COMMUNITY SVCS 8,375,563 7,344,314 87.7%7,040,648 6,176,563 87.7%
COMMUNITY DEVELOPMENT 1,499,956 1,190,171 79.3%1,619,376 1,472,208 90.9%
FINANCE*- - 0.0%2,019,332 1,735,029 85.9%
ENGINEERING 1,752,618 1,551,007 88.5%1,498,269 1,394,659 93.1%
LIBRARY 1,305,200 1,170,803 89.7%1,330,220 1,222,906 91.9%
NON-DEPARTMENTAL 3,064,010 1,829,978 59.7%2,071,797 1,579,013 76.2%
DEBT AND TRANSFERS OUT 7,752,675 6,415,865 82.8%3,732,400 2,209,942 59.2%
TOTAL EXPENDITURES 47,531,499 38,360,485 80.7%46,429,337 37,461,436 80.7%
ENDING FUND BALANCE 14,015,318 14,651,454 13,333,724 15,102,003
TOTAL EXPEND & END FUND BALANCE 61,546,817$ 53,011,939$ 59,763,061$ 52,563,439$
UNRESTRICTED CASH AND
INVESTMENTS:10,354,983$ 11,611,812$
EXPECTED PERCENTAGE OF REVENUES AND EXPENDITURE, FOR 10 MONTHS 83%83%
These statements are intended for Management use only.
*Previously included in the Administrative and Community Services Department
GENERAL FUND OPERATING STATEMENT
THROUGH OCTOBER 2017
Page 19 of 95
AGENDA REPORT
FOR: City Council November 16, 2017
TO: Dave Zabell, City Manager Regular Meeting: 11/20/17
FROM: Richa Sigdel, Director
Finance
SUBJECT: 2018 Operating & Capital Projects Budget Ordinances - Second Reading
I. REFERENCE(S):
2018 Preliminary Annual Operating & Capital Improvement Budget - Link
http://www.pasco-wa.gov/budget
Proposed 2018 Operating Budget Ordinance
Proposed 2018 Capital Projects Budget Ordinance
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
CONDUCT PUBLIC HEARING
MOTION: I move for the second reading and adoption of Ordinance No.
____________, for consideration of the City of Pasco Annual Operating Budget for the
Year 2018 and, further, authorize publication by summary only.
MOTION: I move for the second reading and adoption of Ordinance No.
____________, for consideration of the City of Pasco Capital Projects Budget for the
Year 2018 and, further, authorize publication by summary only.
III. FISCAL IMPACT:
$213,712,293 - Annual Operating Budget (Includes fund balance)
$33,192,735 - Capital Projects Budget
IV. HISTORY AND FACTS BRIEF:
The City Council was provided a comprehensive briefing of the 2018 Preliminary
Budget, along with associated policy issues at the October 30, 2017 Special City
Council Meeting.
Page 20 of 95
A public hearing and First Reading of the proposed 2018 Operating and Capital
Projects Budget took place on November 6, 2017.
Consistent with State statute, and in furtherance of Council's goals with respect to
transparency and providing opportunities for community engagement and input, the
scheduled public hearing is being held for comment on the recommended 2018 budget.
In the interest of time staff will provide a more condensed budget presentation, than
was provided at the workshop, in advance of the public hearing.
V. DISCUSSION:
Since the First Reading of the 2018 Preliminary Budget proposal on November 6,
2017, there have been two changes made to the proposed budget ordinances.
1. The City is acquiring a parcel of land on Road 48 and Court Street. This action
was anticipated to be completed in 2018, however, the process was able to be
completed in 2017. Therefore, the funds budgeted to complete this purchase,
$757,000, were removed from the 2018 Capital Projects Budget Ordinance
(previously under Parks & Facilities).
2. The project scope for Lewis Street Overpass work has been increased from $1.1
million to $2.0 million, to continue the momentum for this high value project.
Please refer to the proposed 2018 Capital Projects Budget Ordinance under
Transportation - Lewis Street Overpass.
A public hearing to attain final input from the public prior to the Second Reading of the
budget ordinance has been advertised. Final direction from the City Council may
modify the final budget.
Barring a desire from Council to revise the proposal, staff recommends approval of the
2018 Operating and Capital budget by passage of the proposed ordinances.
Page 21 of 95
WHEREAS, subsequent to due notice and public hearing thereon, the City Council of the City of Pasco has approved
an operating budget for the year 2018; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS:
Section One.The following budget containing the totals set forth for each fund for the year 2018 is hereby adopted.
EXPENDITURE REVENUE
010 GENERAL FUND 59,635,218$ 59,635,218$
110 CITY STREET FUND 2,344,269 2,344,269
120 ARTERIAL STREET FUND 1,502,746 1,502,746
125 I-182 CORRIDOR TRAFFIC IMPACT FUND 1,293,083 1,293,083
130 STREET OVERLAY FUND 4,693,097 4,693,097
14X COMMUNITY DEVELOPMENT GRANT FUND 1,522,644 1,522,644
145 M.L. KING JR. COMMUNITY CENTER FUND 294,900 294,900
150 AMBULANCE SERVICES FUND 8,310,719 8,310,719
160 CITY VIEW CEMETERY FUND 286,947 286,947
161 BOULEVARD PERPETUAL MAINTENANCE FUND 2,335,392 2,335,392
165 ATHLETIC PROGRAM FUND 365,690 365,690
166 GOLF COURSE 1,912,000 1,912,000
170 SENIOR CENTER OPERATING FUND 351,061 351,061
180 MULTI-MODAL FACILITY FUND 472,847 472,847
182 SCHOOL IMPACT FEES 2,500,000 2,500,000
185 RIVERSHORE TRAIL & MARINA MAINTENANCE FUND 62,725 62,725
188 SPECIAL LODGING ASSESSMENT FUND 275,000 275,000
189 LITTER ABATEMENT FUND 27,201 27,201
190 REVOLVING ABATEMENT FUND 683,402 683,402
191 TRAC DEVELOPMENT & OPERATING FUND 493,147 493,147
192 PARK DEVELOPMENT FUND 2,391,937 2,391,937
193 CAPITAL IMPROVEMENTS FUND REET 1ST QTR 4,936,745 4,936,745
194 ECONOMIC & INDUSTRIAL DEVELOPMENT FUND 2,850,083 2,850,083
195 STADIUM / CONVENTION CENTER FUND 638,035 638,035
24X LID DEBT SERVICE FUND 490,199 490,199
367 GENERAL CAPITAL PROJECTS 22,128,145 22,128,145
4XX WATER / SEWER UTILITY FUND 56,819,926 56,819,926
510 EQUIPMENT OPERATION FUND - GOVERNMENT TYPE 1,257,324 1,257,324
511 EQUIPMENT OPERATION FUND - PROPRIETARY TYPE 551,943 551,943
515 EQUIPMENT REPLACEMENT FUND - GOVERNMENT TYPE 12,150,939 12,150,939
516 EQUIPMENT REPLACEMENT FUND - PROPRIETARY TYPE 5,819,051 5,819,051
52X MEDICAL/DENTAL INSURANCE FUND 8,695,971 8,695,971
530 CENTRAL STORES FUND 12,511 12,511
605 CITY VIEW CEMETERY ENDOWMENT 516,729 516,729
610 OLD FIREMEN'S PENSION TRUST FUND 2,525,145 2,525,145
619 OLD FIRE MEDICAL (OPEB)2,565,522 2,565,522
GRAND TOTAL ALL FUNDS 213,712,293$ 213,712,293$
Section Two.This Ordinance shall be in full force and effect on January 1, 2018.
PASSED by the City Council of the City of Pasco this 20th day of November 2017.
ATTEST:
Matt Watkins, Mayor Daniela Erickson, City Clerk
Approved as to Form:
Leland B. Kerr, City Attorney
FUND
AN ORDINANCE ADOPTING THE CITY OF PASCO OPERATING BUDGET FOR THE YEAR 2018.
ORDINANCE NO.
Page 22 of 95
AN ORDINANCE ADOPTING THE CITY OF PASCO CAPITAL PROJECTS BUDGET FOR THE YEAR 2018
WHEREAS, subsequent to due notice and public hearing thereon, the City Council for the City of Pasco has approved the following
Capital Project Budget for the year 2017; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO DOES ORDAIN AS FOLLOWS:
Section One:
That the capital projects are hereby authorized as detailed. The following schedule summarizes newly authorized projects as well as
continuing projects and constitutes the Capital Projects Budget.
CAPITAL PROJECTS BUDGET FOR THE YEAR 2018
2018
Budget
General
Animal Control 803,000
City Hall Remodel 1,100,000
Community Center 900,000
Downtown Police Substation & Services Facility 100,000
PSK Facility Upgrades 96,000
Wayfinding and Signage 35,000
Relocation of Station 83 300,000
Station 84 400,000
Training Facility Site Work & Modular Building Installation 650,000
Total General 4,384,000
Irrigation
Chapel Hill Boulevard (Road 84 to Road 68) 120,000
Total Irrigation 120,000
Park & Facilities
1st Avenue Center - Phase 2 180,000
Chapel Hill Park 20,000
Facilities Shop Remodel 150,000
Highland Park Restroom/Concession/Storage Building 10,000
Marina Dock Replacement 500,000
Park Restroom Installations 100,000
Pasco Sporting Complex - Softball Complex Updates 150,000
Peanuts Park Restoration 1,539,145
Sacajawea Heritage Trail - Levee Lowering 50,000
Schlagel Park Improvements 64,000
Total Park & Facilities 2,763,145
Transportation
Argent Road Widening (20th Ave to Road 44)150,000
Chapel Hill Blvd LID (Rd 68 to Rd 84)4,670,000
City Wide Traffic Signal Ph 2 300,000
Crescent Road 45,000
James Street Improvements 480,000
Lewis Street Overpass 2,000,000
Oregon Ave (SR397) - Phase 1 7,015,000
Road 68 Interchange Improvements 114,000
Road 84 Safe Walking Route Connection 215,000
Rowena Chess School Crossing 88,140
Total Transportation 15,077,140
Water
Annual System Improvements - Development 100,000
Annual Upsize - Development 100,000
Butterfield WTP PLC & Control Upgrades 500,000
Chapel Hill Boulevard (Road 68 to Road 84) - Watermain Main Upsize 920,000
Columbia Water Supply Project 2,584,450
Water Main Installation – Crescent-Chapel Hill/Sandifur Transmission Main 501,000
Waterline Extension—Schuman Lane (West from Road 96) 80,000
Total Water 4,785,450
Sewer
9th & WA Lift Station 830,000
Annual System Improvements - Development 100,000
Annual Upsize - Development 100,000
NW Area Sewer Transmission Main 2,500,000
Pearl Street Lift Station 223,000
Wastewater Treatment Plant PLCs and Controls Upgrade 750,000
West Pasco Trunk Sewer Relining (Transmission Main Rehabilitation – Rd 60 to Rd 100)50,000
WWTP Facility Plan Capital Improvement Projects 500,000
Total Sewer 5,053,000
PWRF
Industrial Pump Station (IPS) Improvements 160,000
Kahlotus Hwy Sewer Force Main (Dietrich Lift Station)550,000
PWRF Drying Beds 300,000
Total PWRF 1,010,000
TOTAL CIP BUDGET 33,192,735
ORDINANCE NO. ___________
Page 23 of 95
Section Two:
This Ordinance is approved at the program level as shown below and shall be in full force and effect on January 1, 2018.
2018
Program Budget
General 4,384,000
Irrigation 120,000
Park & Facilities 2,763,145
Transportation 15,077,140
Water 4,785,450
Sewer 5,053,000
PWRF 1,010,000
TOTAL CIP BUDGET 33,192,735
PASSED by the City Council of the City of Pasco this ______ day of ____________________, 2017.
ATTEST:
_________________________________________________________
Daniela Erickson, City Clerk Matt Watkins, Mayor
Approved as to Form:_______________________
Leland B. Kerr, City Attorney
Page 24 of 95
AGENDA REPORT
FOR: City Council November 13, 2017
TO: Dave Zabell, City Manager
Rick White, Director
Community & Economic Development
Regular Meeting: 11/20/17
FROM: Darcy Bourcier, Planner I
Community & Economic Development
SUBJECT: Code Amendment: Amending PMC 26.28 to Allow Administrative Approval of
Final Plats (MF# CA 2017-007)
I. REFERENCE(S):
Proposed Ordinance
Planning Commission Memo
Planning Commission Minutes Dated: 9/21/17 and 10/19/17
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to adopt Ordinance No. ____, an ordinance amending PMC Title
26.28 allowing administrative approval of Final Plats, and further, authorize
publication by summary only.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
On July 1, 2018 a revision to State law became effective amending RCW 58.17.100,
58.17.170, and 58.17.190 relating to the approval of final plats. The bill authorizes the
legislative body of a city to delegate final plat approval to a planning commission or
other authorized administrative personnel. Currently, the City of Pasco’s review
process of the subdivision of land includes preliminary and final plat approval by the
City Council.
According to the current code, the Planning Commission holds a hearing to review a
preliminary plat and ensure that the plat conforms to all planning standards as
established in the PMC. The Planning Commission subsequently makes a
recommendation to City Council which the Council may adopt or reject. Once adopted
Page 25 of 95
the plat may proceed forward.
At the time of final plat approval, once staff has determined that all conditions relating
to the plat as previously determined by the City Council have been satisfied, the plat is
scheduled for consideration of final approval by the City Council. The lag between
staff's determination of compliance and the next available regular meeting where
Council can take action can be as long as three weeks. For the plat developer, this wait
time occurs during the period where carrying costs are at their peak.
On September 21, 2017 the Planning Commission conducted a workshop to consider
amending PMC 26.28 to allow administrative approval of final plats as specified in the
attached proposed Code Amendment Ordinance. Subsequently, the Planning
Commission conducted a public hearing on October 19, 2017 to take public input
regarding this code amendment and to form a recommendation to City Council.
Following the conduct of a public hearing, the Planning Commission reasoned it would
be appropriate to recommend an ordinance amending PMC 26.28 (see attached
Ordinance) to allow for administrative approval of plat.
On November 13, 2017 this item was discussed at a City Council Workshop.
V. DISCUSSION:
The revision to State law, the Planning Commission's recommendation and the
proposed ordinance offers an opportunity to expedite approval of final plats in a
manner that limits liability to the City, provides predictability and lessens time related
carrying costs to the investors of the project, and reduces costs passed on to the end
users without compromising the quality of the project.
For the reasons stated above, staff believes that delegating final plat approval to the
City Manager or Designee benefits the City, investors and potential end users of
property being subdivided through the platting process.
Page 26 of 95
Ordinance – Amending PMC 26.28 - 1
ORDINANCE NO._____
AN ORDINANCE AMENDING PMC CHAPTER 26.28 ALLOWING ADMINISTRATIVE
APPROVAL OF FINAL PLATS.
WHEREAS, the development and approval of plats within the State of Washington are
governed by RCW 58.17; and,
WHEREAS, local subdivision regulations including the City of Pasco subdivision
regulations within Title 26 of the Pasco Municipal must conform to RCW 58.17; and,
WHEREAS, the State Legislature recently amended RCW 58.17 grant cities the option
of administratively approving final plat without City Council action; and,
WHEREAS, PMC Title 26 currently contains provisions for administrative approval of
short plat; and,
WHEREAS, to provide for timely approvals of final plats the City Council hereby
exercises the option to authorize administrative approvals of final plats as authorized by RCW
58.17.100; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
Section 1. That section 26.28.010 of the Pasco Municipal Code shall be and hereby is
amended and shall read as follows:
26.28.010 APPLICATION. (1) Except as provided in subsection (2) below, a
final plat meeting all of the requirements of this Chapter shall be submitted to the City
Council City Manager or Designee for approval within seven (7) years of the date of the
preliminary plat approval if the date of the preliminary plat approval is was on or after
January 1, 2008 but before December 31, 2014, and within five (5) years of the date of
preliminary plat approval, if the date of preliminary plat approval is was on or after
January 1, 2015.
(2) A final plat meeting all requirements of this Chapter shall be submitted to
the City Council City Manager or Designee for approval within ten (10) years of the date
or preliminary plat approval if the project is within the City limits, not subject to the
requirements adopted under Chapter 90.48 RCW (Shoreline Management Plan), and the
date of the preliminary plat approval is was on or before December 31, 2007.
(3) The proposed final plat shall be submitted for recording purposes, together
with such supplementary information, certificates and bonds as may be required, to the
City Planner at least fifteen (15) days before the City Council meeting at which approval
is sought.
(4) A complete application shall consist of the original signed, dated and
stamped mylar drawing of the subdivision with ten copies, a title certificate, applicable
Page 27 of 95
Ordinance – Amending PMC 26.28 - 2
instrument identified in 26.28.050 to cover the cost of outstanding improvements, and
digital copy of the final plat in a format specified by the City Engineer.
(3) A complete application for final plat approval shall consist of ten full
sized, four 11x17 paper copies and an electronic copy of the plat. The paper copies
together with such supplementary information and certificates which may be required
shall be submitted to the City Manager or Designee at least twenty days prior to the date
sought for final plat approval. Following written notification of corrections or
modifications necessary for the final plat, if any, the applicant shall submit a signed,
dated and stamped mylar drawing of the subdivision with an updated electronic copy and
the applicable bonding instrument as identified in 26.28.050. A bond will only be needed
if there are outstanding improvements to complete.
Section 2. That section 26.28.030 (14) of the Pasco Municipal Code shall be and
hereby is amended and shall read as follows:
(14) Spaces for certificates or approvals of the following officials or agencies:
a) Mayor City Manager or Designee
b) Chairman, City Planning Commission. City Planner
c) City Engineer
d) County Engineer (where applicable)
e) Franklin County P.U.D. or applicable utility provider
f) Franklin County Irrigation District #1 (where applicable)
g) Benton Franklin Health District (where applicable)
h) County Assessor
i) County Treasurer
j) County Auditor
Section 3. That section 26.28.060 of the Pasco Municipal Code shall be and hereby is
amended and shall read as follows:
26.28.060 CITY COUNCIL ADMINISTRATIVE REVIEW PROCESS. The
final approval of a plat is an administrative function not requiring action by the City
Council. City Council shall have sole authority to approve final plats. Such approval
shall occur by majority affirmative vote of the City Council during a regular City Council
meeting. The administrative review process shall require a complete application for the
final plat which A final plat shall only be approved if the City Council administrative
review process finds the subdivision proposed for final plat approval conforms to all
terms of the preliminary plat approval, and the said subdivision meets the requirements of
Chapter 58.17 RCW, other applicable state laws and this title which requirements were in
effect on the date of submission of a fully completed preliminary plat application.
Section 4. That section 26.28.070 of the Pasco Municipal Code shall be and hereby is
amended and shall read as follows:
Page 28 of 95
Ordinance – Amending PMC 26.28 - 3
26.28.070 TERMS OF APPROVAL. (1) A subdivision shall be governed by
the terms of approval of the final plat, and the statutes, zoning ordinances and regulations
in effect on the date of preliminary plat approval for a period of seven (7) years after final
plat approval if the date of the final plat approval is on or before December 31, 2014; and
for a period of five (5) years after the final plat approval if the date of final plat approval
is on or after January 1, 2015, unless the City Council finds through the administrative
approval process it is found that a change in conditions creates a serious threat to the
public health or safety in the subdivision. If a serious threat to public health and safety is
found as determined by the City Manager or Designee the plat may be reviewed by the
City Council.
(2) A subdivision shall be governed by the terms of approval of the final plat,
and the statutes, zoning ordinances and regulations in effect at the time of approval of the
preliminary plat for a period of ten (10) years after final plat approval if the project is
located within the City limits, not subject to the requirements adopted under Chapter
90.58 RCW (Shoreline Management Plan), and the date of the final plat approval is on
before December 31, 2007, unless the City Council finds through the administrative
approval process it is found that a change in conditions creates a serious threat to the
public health or safety in the subdivision. If a serious threat to public health and safety is
found the plat may be reviewed by the City Council.
Section 5. This ordinance shall be in full force and effect five days after passage and
publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, and approved as
provided by law this ____ day of _________________, 2017.
______________________________
Matt Watkins
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ____________________________
Daniela Erickson Leland B. Kerr
City Clerk City Attorney
Page 29 of 95
1
M E M O R A N D U M
DATE: October 19, 2017
TO: Planning Commission
FROM: Darcy Bourcier, Planner I
SUBJECT: Ordinance Amending PMC Chapter 26.28 Allowing Administrative
Approval of Final Plats (MF# CA2017-007)
Earlier this year in July the Senate passed a bill amending RCW 58.17.100,
58.17.170, and 58.17.190 which addresses the approval of final plats. The
bill authorizes the legislative body of a city to delegate final plat approval to a
planning commission or other authorized administrative personnel.
Currently, the City of Pasco’s review process of the subdivision of land
includes preliminary and final plat approval by the City Council.
According to the current code, the Planning Commission holds a hearing to
review a preliminary plat and ensure that the plat conforms to all planning
standards as established in the PMC. The Planning Commission subsequently
makes a recommendation to City Council which the Council may adopt or
reject. At the time of final plat approval, all issues related to zoning,
environmental impact, and building have been resolved.
Thus, staff believes that delegating final plat approval to the Planning
Director or City Manager would benefit both the City and applicants who
submit subdivision proposals by decreasing the review process by nearly two
weeks and eliminating a formality that has the potential to cause liability.
Staff has scheduled a public hearing for the Planning Commission meeting of
October 19, 2017.
Page 30 of 95
PLANNING COMMISSION MINUTES
9/21/17
WORKSHOP:
A. Code Amendment Ordinance Amending PMC Chapter 26.28
Allowing Administrative Approval of Final Plats
(MF# CA 2017-007)
Chairwoman Roach read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the ordinance
amending PMC Chapter 26.28, allowing administrative approval of final plats.
Currently, preliminary plats come to the Planning Commission for public hearing,
then come back for deliberations and are then sent on to City Council for a
recommendation to approve or deny a preliminary plat with a number of conditions.
The applicant will have 5 years to fulfill those conditions based on the preliminary plat
approval. When it is complete, and they are often done in phases, the phases go to
City Council for approval. It is a pro-forma approval because at that stage everything
is complete. The improvements are constructed, conditions complied with and if the
improvements aren’t constructed, a bond is posted in case the developer walks from
the project the City can complete the public improvements, such as a road or park.
Up until July of 2017, State Law requires that final plat process to go through City
Council for approval but that has been changed to allow administrative approval of the
final plat. Staff has developed an ordinance that appears to change a lot in our
existing subdivision code but it actually changes very little. It clarifies some items and
allows administrative approval instead of City Council approval. The process the
Planning Commission is involved with won’t change at all and the City Council will
still be hearing the Commission’s recommendations on preliminary plats just as they
do now. But in 5 years from now when the plat is completed, City Council won’t be
involved should this code amendment be processed and approved.
Chairwoman Roach asked if this ordinance would take 5 years to be put into effect.
Mr. White replied that if it is approved it will go into effect when it is adopted by City
Council but it is an amendment to the subdivision code. The Planning Commission
should weigh in on what Council should do.
Chairwoman Roach said she would support the process to move more expediently as
there has been such requests from the public and applicants. This may help move
things along.
Mr. White added that once the preliminary plat is approved by Council they may not
see plat again and neither does the Planning Commission. When it does come back to
Council for final approval it’s on the consent agenda, it’s not even a hearing or
discussed. It would save 2-4 weeks of time at the end of the process when everything
is complete and the developer just needs approval which is what the state law was
Page 31 of 95
getting at.
Commissioner Portugal added that there needs to be a balance between expedience
and the process to make sure nothing backfires. While he understands there are
deadlines, he does want us to use caution to ensure the well-being of the residents.
Commissioner Greenaway said she agreed with Commissioner Portugal but the
problem is 5 years down the road when the project is complete that step in the process
should be quick.
Commissioner Bykonen reminded the Commission that once the plat is ready for final
approval by Council, it is put on the consent agenda and Council doesn’t even discuss
it and that has been her experience regardless of the jurisdiction.
Commissioner Alvarado asked if staff saw any drawbacks to the ordinance amending
the PMC.
Mr. White said no.
Commissioner Portugal discussed the process of cell towers and how it is decided for
the companies to disguise them, such as the pine tree cell tower on Road 68 and
Court Street or not disguise them as some other towers in the community. He asked if
it was possible to have a requirement for cell towers or to make older cell towers to
look more aesthetic.
Mr. White responded that as Commissioner Cruz once pointed out, that sometimes it
is site specific and a tower disguised as a tree may look good in one location but out of
place and worse in another location. At the same meeting where the cell tower
disguised as a pine tree was approved there was also a cell tower approved disguised
as a church steeple on top of a church. It is more of a location basis but the Planning
Commission weighs in on the decision.
Commissioner Alvarado asked if the item they were discussing the ordinance
amendment was for development of plats.
Mr. White replied yes and with the code amendment the Planning Commission
typically looks at it first at a workshop and then staff takes direction and makes any
necessary changes based on feedback and then schedule a hearing to come back to
the Planning Commission with a draft ordinance for a recommendation.
There were no further questions or comments.
Page 32 of 95
PLANNING COMMISSION MINUTES
10/19/17
PUBLIC HEARINGS:
G. Code Amendment Ordinance Amending PMC Chapter 26.28
Allowing Administrative Approval of Final Plats
(MF# CA 2017-007)
Chairman Cruz read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the proposed
code amendment to PMC Chapter 26.28 which would allow administrative approval of
final plats. Mr. White explained that State law changed this past legislative session to
allow cities to delegate the authority to approve final plats to an administrative staff. It
was discussed at the September 21, 2017 Planning Commission meeting that when an
item finally proceeds to City Council for final plat approval, everything has been
fulfilled beforehand—the conditions have been developed, approved, and recorded. The
implementation of the approval is completed through the final plat process; a final plat
does not proceed to Council until it is done. Mr. White pointed out that staff sees it as
not only a way to decrease liability on behalf of the City, but also a way to increase
efficiency. This code amendment, he said, will eliminate a two to three week process of
getting a final plat to City Council for approval.
Mr. White proposed the Commission conduct the public hearing and recommend
approval to City Council.
Chairman Cruz asked for discussion, comments, or questions from the Commission
members. There were none.
Chairman Cruz opened the item for public hearing. There were no comments from the
audience, so Chairman Cruz closed the public hearing.
Commissioner Portugal moved, seconded by Commissioner Mendez, to close the public
hearing and recommend the City Council amend PMC 26.28 to allow administrative
approval of final plats. The motion passed unanimously.
Page 33 of 95
AGENDA REPORT
FOR: City Council November 16, 2017
TO: Dave Zabell, City Manager Regular Meeting: 11/20/17
FROM: Richa Sigdel, Finance Director
Finance
SUBJECT: Revenue Bonds for Waterworks Utility
I. REFERENCE(S):
Ordinance
Project Listing
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to adopt Ordinance No. 4365 relating to the waterworks utility of
the City, including the sanitary sewerage system and the system of storm or surface
water sewers as a part thereof; specifying, adopting and ordering the carrying out of a
system or plan of additions to and betterments and extensions of the waterworks utility
of the City; providing for the issuance of one or more series of water and sewer
revenue bonds of the City in an aggregate principal amount of not to exceed
$10,000,000 for the purpose of providing the funds necessary (a) to pay all or a portion
of the costs of carrying out the plan of additions, (b) to make a deposit to the debt
service reserve account as needed, (c) to refund and redeem outstanding water and
sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of the
bonds and the administrative costs of the refunding; 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.
III. FISCAL IMPACT:
Estimated total bonds of approximately $10 million to be issued. Debt service
requirements to be met from revenue generated by utility user fees.
IV. HISTORY AND FACTS BRIEF:
As previously planned and discussed with Council during rate, Capital Improvement
Plan (CIP) and preliminary budget presentations, the proposed revenue bonds will
finance the design, construction, equipment and furnishings for water and sewer system
Page 34 of 95
projects per the CIP and an additional amount to fund the required reserve fund to
assure bond repayment. The subject bonds are expected to be repaid over a 20-year
period.
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 (S & P) which is expected to be beneficial to the City in time
of sale and interest on the bonds.
The proposed ordinance names 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, when completed for November 20, will
provide the parameters within which the Designated Representative may act (See
Proposed Ordinance Exhibit A. Please note that at the time of writing this report, not
all parameters had been proposed. Recommended parameters will be provided in the
proposed final 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 on December 4).
V. DISCUSSION:
A listing of projects included in the funding is attached. Staff anticipates being able to
provide final information, including the rating for the bonds at the December 4 Council
Meeting. The City's current S & P rating for Water and Sewer bond is AA -.
This item was discussed at the November 13, 2017 Council Workshop.
Page 35 of 95
51615205.7
CITY OF PASCO, WASHINGTON
ORDINANCE NO. 4365
AN ORDINANCE relating to the waterworks utility of the City, including
the sanitary sewerage system and the system of storm or surface water sewers as a
part thereof; specifying, adopting and ordering the carrying out of a system or
plan of additions to and betterments and extensions of the waterworks utility of
the City; providing for the issuance of one or more series of water and sewer
revenue bonds of the City in an aggregate principal amount of not to exceed
$10,000,000 for the purpose of providing the funds necessary (a) to pay all or a
portion of the costs of carrying out the plan of additions, (b) to make a deposit to
the debt service reserve account as needed, (c) to refund and redeem outstanding
water and sewer revenue bonds of the City and (d) to pay the costs of issuance
and sale of the bonds and the administrative costs of the refunding; 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: November 20, 2017
This document was prepared by:
FOSTER PEPPER PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
Page 36 of 95
-i-
51615205.7
TABLE OF CONTENTS
Page
Section 1. Definitions................................................................................................................1
Section 2. Findings and Determinations ...................................................................................8
Section 3. Plan of Additions ...................................................................................................10
Section 4. Authorization of the Bonds ....................................................................................10
Section 5. Appointment of Designated Representative; Description of the Bonds ................10
Section 6. Registration and Transfer of Bonds .......................................................................11
Section 7. Form and Execution of Bonds. ..............................................................................12
Section 8. Payment of Bonds ..................................................................................................12
Section 9. Redemption Provisions and Purchase of Bonds ....................................................13
Section 10. Failure to Pay Bonds ..............................................................................................14
Section 11. Bond Fund; Payments into Bond Fund ..................................................................14
Section 12. Pledge, Lien and Charge for Payment of the Bonds ..............................................15
Section 13. Flow of Funds ........................................................................................................16
Section 14. Covenants ...............................................................................................................16
Section 15. Provisions for Future Parity Bonds ........................................................................17
Section 16. Tax Covenants .......................................................................................................18
Section 17. Refunding or Defeasance of Bonds .......................................................................18
Section 18. Deposit of Bond Proceeds; Creation of Construction Accounts ............................19
Section 19. Use of Refunding Proceeds; the Refunding Plan ...................................................20
Section 20. Sale and Delivery of the Bonds .............................................................................22
Section 21. Official Statement; Continuing Disclosure ............................................................22
Section 22. General Authorization and Ratification .................................................................23
Section 23. Severability ............................................................................................................23
Section 24. Effective Date of Ordinance ..................................................................................23
Exhibit A Parameters for Final Terms
Exhibit B Parity Conditions
Exhibit C Form of Undertaking to Provide Continuing Disclosure
Page 37 of 95
-1-
51615205.7
CITY OF PASCO, WASHINGTON
ORDINANCE NO. 4365
AN ORDINANCE relating to the waterworks utility of the City, including
the sanitary sewerage system and the system of storm or surface water sewers as a
part thereof; specifying, adopting and ordering the carrying out of a system or
plan of additions to and betterments and extensions of the waterworks utility of
the City; providing for the issuance of one or more series of water and sewer
revenue bonds of the City in an aggregate principal amount of not to exceed
$10,000,000 for the purpose of providing the funds necessary (a) to pay all or a
portion of the costs of carrying out the plan of additions, (b) to make a deposit to
the debt service reserve account as needed, (c) to refund and redeem outstanding
water and sewer revenue bonds of the City and (d) to pay the costs of issuance
and sale of the bonds and the administrative costs of the refunding; 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 words shall have the
following meanings:
(a) “2009 Bonds” means the outstanding Water and Sewer Revenue Bonds, 2009, of
the City issued pursuant to Ordinance No. 3915.
(b) “2010A Bonds” means the outstanding Water and Sewer Improvement and
Refunding Revenue Bonds, 2010A, of the City issued pursuant to Ordinance No. 3962.
(c) “2010T Bonds” means the outstanding Water and Sewer Refunding Revenue
Bonds, 2010T (Taxable), of the City issued pursuant to Ordinance No. 3962.
(d) “2013A Bonds” means the outstanding Water and Sewer Revenue Bonds, 2013A,
of the City issued pursuant to Ordinance No. 4126.
(e) “2013T Bonds” means the outstanding Water and Sewer Revenue Bonds, 2013T
(Taxable), of the City issued pursuant to Ordinance No. 4126.
(f) “2015 Bonds” means the outstanding Water and Sewer Improvement and
Refunding Revenue Bonds, 2015, of the City issued pursuant to Ordinance No. 4254.
(g) “Acquired Obligations” means the United States Treasury Certificates of
Indebtedness, Notes, and Bonds-State and Local Government Series and/or other Government
Obligations, as identified in the Refunding Trust Agreement, purchased to carry out the
Refunding Plan.
Page 38 of 95
-2-
51615205.7
(h) “Alternate Security” means any bond insurance, collateral, security, letter of
credit, guaranty, surety bond or similar credit enhancement device providing for or securing the
payment of all or part of the principal of and interest on any specified Parity Bonds, issued by an
institution which has been assigned a credit rating at the time of issuance of the applicable Parity
Bonds, respectively, secured by such Alternate Security in the highest rating categories by both
Moody’s Investors Service, Inc., and S&P Global.
(i) “Annual Debt Service” for any or all Parity Bonds for any year means all the
interest, plus all principal which will mature or come due in such year, less all bond interest
payable from the proceeds of any such bonds in that year.
(j) “Assessment Bonds” means, at the time of determination, Parity Bonds then
outstanding equal to the sum of the nondelinquent unpaid principal amount of ULID
Assessments then outstanding plus any ULID Assessment payments then on deposit in the
Principal and Interest Account of the Bond Fund. Assessment Bonds shall be allocated to each
remaining maturity of Parity Bonds in the same proportion as the total of the Assessment Bonds
relates to the total of the Parity Bonds then outstanding.
(k) “Authorized Denomination” means $5,000.00 or any integral multiple thereof
within a maturity.
(l) “Average Annual Debt Service” means, at the time of its calculation, the sum of
the Annual Debt Service for the remaining years to the last scheduled maturity of the applicable
Parity Bonds divided by the number of those years.
(m) “Beneficial Owner” means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(n) “Bond” means each Project Bond and each Refunding Bond issued pursuant to
and for the purposes provided in this ordinance.
(o) “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.
(p) “Bond Fund” means the Water and Sewer Revenue and Refunding Bond
Redemption Fund, 1991, of the City created and established by Ordinance No. 2846 for the
payment of the principal of and interest on the Parity Bonds.
(q) “Bond Purchase Agreement” means an offer to purchase the Bonds, or a Series of
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.
(r) “Bond Register” means the books or records maintained by the Bond Registrar
for the purpose of identifying ownership of each Bond.
Page 39 of 95
-3-
51615205.7
(s) “Bond Registrar” means the Fiscal Agent, or any successor bond registrar
selected by the City.
(t) “City” means the City of Pasco, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(u) “City Clerk” means the City Clerk of the City or the successor to the functions of
that officer.
(v) “City Contribution” means legally available money of the City, in addition to
proceeds of the Bonds, necessary or advisable to carry out the Refunding Plan, as determined by
the Designated Representative.
(w) “City Council” means the legislative authority of the City, as duly and regularly
constituted from time to time.
(x) “Code” means the United States Internal Revenue Code of 1986, as amended,
and applicable rules and regulations promulgated thereunder.
(y) “Construction Accounts” means such accounts created in the Water/Sewer Fund
as the Finance Director shall designate for the purpose of paying the costs of the Plan of
Additions and the costs of issuance of the Bonds.
(z) “Coverage Requirement” in any year means an amount of Net Revenue of the
Waterworks Utility, together with the ULID Assessments collected in that year, equal to at least
the Maximum Annual Debt Service on all Assessment Bonds plus an amount of the Net Revenue
of the Waterworks Utility not used to calculate the Coverage Requirement on Assessment Bonds
equal to at least 1.25 times Maximum Annual Debt Service on all bonds payable from the Bond
Fund that are not Assessment Bonds.
(aa) “DTC” means The Depository Trust Company, New York, New York, or its
nominee.
(bb) “Designated Representative” means an officer of the City appointed in Section 5
of this ordinance to serve as the City’s designated representative in accordance with RCW
39.46.040(2).
(cc) “Final Terms” means the terms and conditions for the sale of a Series of Bonds
including, but not limited to 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, including minimum savings for refunding bonds (if
the refunding bonds are issued for savings purposes).
(dd) “Finance Director” means the City’s Finance Director or such other officer of the
City who succeeds to substantially all of the responsibilities of that office.
(ee) “Fiscal Agent” means the fiscal agent of the State, as the same may be designated
by the State from time to time.
Page 40 of 95
-4-
51615205.7
(ff) “Future Parity Bonds” means any and all water and sewer revenue bonds or other
obligations of the City issued or incurred after the date of the issuance of the Bonds pursuant to
the provisions of the Parity Bond Ordinances, the payment of the principal of and interest on
which constitutes a lien and charge upon the Net Revenue of the Waterworks Utility and ULID
Assessments on a parity with the lien and charge upon such Net Revenue and ULID Assessments
for the Outstanding Parity Bonds and the Bonds, but shall not include variable rate obligations.
(gg) “Government Obligations” has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(hh) “Gross Revenue of the Waterworks Utility” or “Gross Revenue” means all of the
earnings and revenues received by the City from the maintenance and operation of the
Waterworks Utility and all earnings from the investment of money on deposit in the Bond Fund,
except ULID Assessments, government grants, proceeds from the sale of Waterworks Utility
property, City taxes collected by or through the Waterworks Utility, principal proceeds of bonds
and earnings or proceeds from any investments in a trust, defeasance or escrow fund created to
defease or refund Waterworks Utility obligations (until commingled with other earnings and
revenues of the Waterworks Utility) or held in a special account for the purpose of paying a
rebate to the United States Government under the Code.
(ii) “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.
(jj) “Letter of Representations” means the Blanket Issuer Letter of Representations
between the City and DTC dated August 31, 1998.
(kk) “Maximum Annual Debt Service” means, at the time of calculation, the maximum
amount of Annual Debt Service that will mature or come due in the current year or any future
year on the outstanding Parity Bonds.
(ll) “Mayor” means the Mayor of the City or the successor to the functions of that
office.
(mm) “MSRB” means the Municipal Securities Rulemaking Board.
(nn) “Net Revenue of the Waterworks Utility” or “Net Revenue” means the Gross
Revenue less Operating and Maintenance Expenses.
(oo) “Official 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.
(pp) “Operating and Maintenance Expenses” means all reasonable expenses incurred
by the City in causing the Waterworks Utility to be operated and maintained in good repair,
working order and condition, including payments made to any other municipal corporation or
private entity for water service and for sewage treatment and disposal service or other utility
service in the event the City combines such service in the Waterworks Utility and enters into a
Page 41 of 95
-5-
51615205.7
contract for such service, but not including any depreciation or taxes levied or imposed by the
City or payments to the City in lieu of taxes, or capital additions or capital replacements to the
Waterworks Utility.
(qq) “Outstanding Parity Bonds” means the outstanding 2009 Bonds, 2010A Bonds,
2010T Bonds, 2013A Bonds, 2013T Bonds, and 2015 Bonds. Outstanding Parity Bonds do not
include any Refunded Bonds.
(rr) “Owner” means, without distinction, the Registered Owner and the Beneficial
Owner.
(ss) “Parity Bonds” means the Outstanding Parity Bonds, the Bonds and any Future
Parity Bonds.
(tt) “Parity Bond Ordinances” means Ordinance No. 3915, Ordinance No. 3962,
Ordinance No. 4126, Ordinance No. 4254 and this ordinance.
(uu) “Parity Conditions” means the conditions for issuing Future Parity Bonds set
forth in Exhibit B to this ordinance, which is incorporated herein by this reference.
(vv) “Plan of Additions” means the system or plan of additions to and betterments and
extensions of the Waterworks Utility specified, adopted and ordered to be carried out by this
ordinance.
(ww) “Principal and Interest Account” means the account of that name created in the
Bond Fund for the payment of the principal of and interest on all Parity Bonds.
(xx) “Project Bond” means each bond issued pursuant to this ordinance for the
purpose of providing money required to carry out and accomplish the Plan of Additions,
including without limitation paying the allocable share of the costs related to the issuance, sale
and delivery of such bond and providing for the Reserve Requirement with respect to the Project
Bonds.
(yy) “Purchaser” means D.A. Davidson & Co. of Seattle, Washington, or such other
purchaser of the Bonds whose offer is accepted by the Designated Representative in accordance
with this ordinance.
(zz) “Rating Agency” means any nationally recognized rating agency then
maintaining a rating on the Bonds at the request of the City.
(aaa) “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.
(bbb) “Redemption Date” means, with respect to each series of the Refunded Bonds, a
date or dates selected by the Designated Representative.
Page 42 of 95
-6-
51615205.7
(ccc) “Refunded Bonds” means the Refunding Candidates selected by the Designated
Representative and identified in the Refunding Plan.
(ddd) “Refunding Bond” means each bond issued pursuant to this ordinance for the
purpose of carrying out the Refunding Plan, including without limitation paying the
administrative costs of the refunding and the allocable share of costs related to the issuance, sale
and delivery of such bond and providing for the Reserve Requirement with respect to the
Refunding Bonds.
(eee) “Refunding Candidates” means: (1) the currently outstanding $6,485,000
principal amount of the 2009 Bonds not subject to extraordinary redemption maturing on
December 1 of each of the years 2018 through 2021 and 2023 through 2029; and (2) the
currently outstanding $4,480,000 principal amount of the 2010A Bonds maturing on June 1 of
each of the years 2018 through 2020, 2025 and 2029.
(fff) “Refunding Plan” means (as further described in the Refunding Trust
Agreement):
(1) the deposit with the Refunding Trustee of proceeds of the Bonds in
an amount, together with the City Contribution (if any), sufficient to acquire the
Acquired Obligations and establish a beginning cash balance;
(2) the receipt by the Refunding Trustee of the maturing principal of
and interest on the Acquired Obligations, and the application of such amounts
(together with any other cash held by it) to pay principal of and interest on the
Refunded Bonds when due up to and including the applicable Redemption Dates,
and the call, payment and redemption of the Refunded Bonds on the applicable
Redemption Dates at a price equal to the principal amount to be redeemed; and
(3) payment of the costs of issuing the Bonds and the costs of carrying
out the foregoing elements of the Refunding Plan, if payment of such costs is so
specified in the Refunding Trust Agreement.
(ggg) “Refunding Trust Agreement” means the refunding trust agreement between the
City and the Refunding Trustee, providing for the carrying out of the Refunding Plan.
(hhh) “Refunding Trustee” means the trustee, or any successor trustee, designated by
the Designated Representative to serve as refunding trustee to carry out the Refunding Plan.
(iii) “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.
(jjj) “Reserve Account” means the account of that name created in the Bond Fund for
the purpose of securing the payment of the principal of and interest on the Parity Bonds.
Page 43 of 95
-7-
51615205.7
(kkk) “Reserve Insurance” means, in lieu of cash and investments, insurance obtained
by the City to fund all or a portion of the Reserve Requirement for any Parity Bonds then
outstanding for which such insurance is obtained; and for the Outstanding Parity Bonds and the
Bonds means the Surety Bond provided by the Reserve Insurer.
(lll) “Reserve Insurer” means Ambac Assurance Corporation for the Outstanding
Parity Bonds and the Bonds.
(mmm) “Reserve Requirement” means:
(1) For the Outstanding Parity Bonds and the Bonds, an amount equal to the
least of (a) 10% of the issue price of the then-outstanding Parity Bonds, (b) Maximum
Annual Debt Service on the then-outstanding Parity Bonds and (c) 1.25 times Average
Annual Debt Service on the then-outstanding Parity Bonds. For the purposes of
determining Maximum Annual Debt Service and Average Annual Debt Service for
calculating the Reserve Requirement, all bonds payable or proposed to be paid from the
Bond Fund shall be treated as a single issue and the number of years to the last scheduled
maturity for any of those issues shall be used as the denominator.
(2) For any Future Parity Bonds secured by the Reserve Account, an amount
equal to the difference between the Reserve Requirement for the then-outstanding Parity
Bonds secured by the Reserve Account and the least of (a) 10% of the issue price of the
then-outstanding Parity Bonds secured by the Reserve Account and the Future Parity
Bonds proposed to be issued, (b) Maximum Annual Debt Service on the then-outstanding
Parity Bonds secured by the Reserve Account and the Future Parity Bonds proposed to be
issued and (c) 1.25 times Average Annual Debt Service on the then-outstanding Parity
Bonds secured by the Reserve Account and the Future Parity Bonds proposed to be
issued, but in no event to exceed an amount equal to the least of 10% of the issue price of
the proposed Future Parity Bonds, Maximum Annual Debt Service on those bonds and
1.25 times Average Annual Debt Service on the proposed bonds. For the purposes of
determining Maximum Annual Debt Service and Average Annual Debt Service for
calculating the Reserve Requirement, all bonds payable or proposed to be paid from the
Bond Fund secured by the Reserve Account shall be treated as a single issue and the
number of years to the last scheduled maturity for any of those issues shall be used as the
denominator.
(nnn) “Rule 15c2-12” means Rule 15c2-12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
(ooo) “SEC” means the United States Securities and Exchange Commission.
(ppp) “Series of Bonds” or “Series” means a series of the Bonds issued pursuant to this
ordinance.
(qqq) “State” means the State of Washington.
Page 44 of 95
-8-
51615205.7
(rrr) “Surety Bond” means the surety bond issued by the Reserve Insurer guaranteeing
certain payments into the Reserve Account with respect to the Outstanding Parity Bonds and the
Bonds as provided in and subject to the limitations set forth in that surety bond.
(sss) “Term Bonds” 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. For
any Outstanding Parity Bonds or Future Parity Bonds, “Term Bonds” means those bonds of any
single issue or series designated as Term Bonds pursuant to the ordinance authorizing their
issuance or sale and which are subject to mandatory prior redemption or for which mandatory
sinking fund installments are provided.
(ttt) “ULID” means utility local improvement district.
(uuu) “ULID Assessments” means all ULID assessments and installments thereof, plus
interest and penalties thereon, in any ULID created to secure the payment of any Parity Bonds
and pledged to be paid into the Bond Fund.
(vvv) “Undertaking” means the undertaking to provide continuing disclosure entered
into pursuant to Section 21(c) of this ordinance.
(www) “Water and Sewer Revenue Fund” means that special fund of the City into which
all of the Gross Revenue of the Waterworks Utility of the City shall be deposited.
(xxx) “Waterworks Utility” means the combined sewerage system and water system of
the City, together with the storm or surface water sewers and agricultural/industrial wastewater
treatment facilities heretofore or hereafter authorized to be constructed and installed as a part of
such combined systems, and together with all additions thereto and betterments and extensions
thereof now or hereafter made.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Background. The City, by Ordinance No. 531, passed March 7, 1944, provided
that the system of sewerage of the City, including all additions, extensions and betterments
thereto, should be operated as a part of and as belonging to the Waterworks Utility of the City
pursuant to the provisions of Chapter 193 of the Laws of 1941 of the State of Washington (RCW
35.67.320 et seq.).
(b) Plan of Additions. The City has determined that it is necessary and in the best
interests of the City that certain improvements be made and there be adopted a system or plan of
additions to and betterments and extensions of the Waterworks Utility (the “Plan of Additions”).
(c) Outstanding Parity Bonds. Pursuant to Ordinance No. 2846, the City heretofore
issued and sold its 1991 Bonds (all of which have been paid and retired), and reserved the right
to issue additional water and sewer revenue bonds of the City which would have a lien and
charge upon the Net Revenue of the Waterworks Utility and ULID Assessments on a parity with
those 1991 Bonds if the Parity Conditions are met. The City currently has outstanding the
Page 45 of 95
-9-
51615205.7
following water and sewer revenue bonds issued on a parity of lien and charge on the Net
Revenue of the Waterworks Utility and ULID Assessments with the 1991 Bonds:
Name of Issue
Original
Principal
Amount
Dated
Date
Authorizing
Ordinance
Ordinance
Passage
Date
2009 Bonds 10,045,000 4/17/2009 3915 4/06/2009
2010A Bonds 9,070,000 6/03/2010 3962 5/17/2010
2010T Bonds 1,240,000 6/03/2010 3962 5/17/2010
2013A Bonds 2,520,000 12/05/2013 4126 11/18/2013
2013T Bonds 7,235,000 12/05/2013 4126 11/18/2013
2015 Bonds 14,380,000 12/22/2015 4254 11/30/2015
(d) Parity Conditions Met. The City Council finds and declares that (1) all payments
required by the Outstanding Parity Bonds are provided for in this ordinance or have been
provided for or made into the Bond Fund for those outstanding bonds and that no deficiency
exists in such fund; (2) provision is hereinafter made for the deposit in the Reserve Account of
the Bond Fund of the Reserve Requirement for the Bonds; and (3) that all other conditions set
forth in the Parity Conditions will have been met and satisfied before the Bonds are delivered to
the initial purchaser.
(e) Refunding Candidates. In order to realize a debt service savings to the City and its
ratepayers, the City Council wishes to refund all or a portion of the Refunding Candidates.
Chapter 39.53 RCW and other laws of the State authorize the City to carry out the Refunding
Plan.
(f) Sufficiency of Gross Revenue; Due Regard. The City Council finds and
determines that the Gross Revenue of the Waterworks Utility will be more than sufficient to
(1) meet all Operating and Maintenance Expenses thereof (and the cost of maintenance and
operation as contemplated by RCW 35.92.100), and the debt service requirements of the
Outstanding Parity Bonds, and (2) permit the setting aside into the Bond Fund out of the Net
Revenue of the Waterworks Utility of the City of amounts sufficient to pay the principal of and
interest on the Bonds when due. The City Council declares that in creating the Bond Fund and in
fixing the amounts to be paid into that fund, it has exercised due regard for Operating and
Maintenance Expenses (and the cost of maintenance and operation contemplated by RCW
35.92.100) and the debt service requirements of the Outstanding Parity Bonds, and the City has
not bound or obligated itself to set aside and pay into the Bond Fund a greater amount or
proportion of the Gross Revenue of the Waterworks Utility of the City than in the judgment of
the City Council will be available over and above such Operating and Maintenance Expenses and
debt service requirements of the Outstanding Parity Bonds, and that the City has not pledged any
portion of the Gross Revenue of the Waterworks Utility of the City for any indebtedness other
than the Outstanding Parity Bonds.
(g) Issuance of Bonds. Based on the foregoing, the City Council finds that it is in the
best interest of the City to issue and sell the Bonds to the Purchaser, pursuant to the terms set
forth in the Bond Purchase Agreement as approved by the Designated Representative consistent
with this ordinance.
Page 46 of 95
-10-
51615205.7
Section 3. Plan of Additions. The City specifies, adopts and orders the carrying out
of a system or plan of additions to and betterments and extensions of the Waterworks Utility
consisting of the following improvements (the “Plan of Additions”), which are included and
more particularly described in the City’s Capital Improvement Plan 2018-2023 approved
September 5, 2017:
(a) Water system improvements, including pumping capacity and filter backwash
capability improvements to the West Pasco Water Treatment Plant and water line replacement
improvements in Richardson Road; and
(b) Sewer system improvements, including suction valve, access hatch, pump and
pipe improvements to the 9th and Washington lift station, transmission main improvements in the
northwest area, Pearl Street lift station replacement, repair and relining improvements to the
West Pasco trunk sewer transmission line, and other improvements identified in the capital
facility plan for the wastewater treatment plant facility, as may be further developed and
amended.
There shall be included in the foregoing system or plan the acquisition and installation of
all necessary valves, pumps, fittings, couplings, connections, equipment and appurtenances, and
replacements and improvements necessary or desirable to maintain or increase the effectiveness
of the service provided by such facilities, other improvements to and extensions of the
Waterworks Utility, the acquisition of any easements, rights-of-way and land that may be
required and the performance of such work as may be incidental and necessary.
All of the foregoing shall be in accordance with the plans and specifications therefor
prepared by the staff and consulting engineers of the City.
The City Council may modify the details of the Plan of Additions where, in its judgment,
it appears advisable if such modifications do not substantially alter the purposes of the Plan of
Additions.
The estimated cost of the acquisition, construction, installation and financing of the
above-described improvements to be paid from the proceeds of the Bonds is declared to be
approximately $9,995,000. Any excess proceeds of the Project Bonds remaining following
payment of the costs of the Plan of Additions shall be applied to costs of other improvements to
the Waterworks Utility of the City heretofore or hereafter approved in the City’s Capital Budget
Section 4. Authorization of the Bonds. The City is authorized to issue, sell and
deliver water and sewer revenue bonds in one or more Series (as determined by the Designated
Representative pursuant to the parameters for Final Terms set forth in Exhibit A, which is
attached to this ordinance and incorporated by this reference) for the purpose of providing funds
necessary to (a) pay costs of carrying out the Plan of Additions, (b) carry out the Refunding Plan;
(c) make a deposit to the Reserve Account as needed to satisfy the Reserve Requirement and
(d) pay the costs of issuance and sale of the Bonds.
Section 5. Appointment of Designated Representative; Description of the Bonds. The
Finance Director and the Deputy City Manager are each appointed as the Designated
Representative of the City, both with the individual authority to conduct the sale of the Bonds in
Page 47 of 95
-11-
51615205.7
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.
Section 6. 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, the Bond Register, 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 Series, 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
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.
Page 48 of 95
-12-
51615205.7
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 7. 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, Water and
Sewer Revenue [Bonds] [Refunding Bonds] [Improvement and Refunding Bonds], [2017]
[2018] 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 8. 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. 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 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 payable solely out of
the Bond Fund and shall not be general obligations of the City. The Bonds are not subject to
acceleration under any circumstances.
Page 49 of 95
-13-
51615205.7
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 Series
and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a
Series are to be redeemed, the Securities Depository shall select Bonds registered in the name of
the Securities 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 Series, 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 Finance 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
Page 50 of 95
-14-
51615205.7
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 or in the open market 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 date 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. Bond Fund; Payments into Bond Fund. The Bond Fund has been
previously created and established as a special fund of the City known and designated as the
Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, which fund has been
divided into two accounts, namely, the Principal and Interest Account and the Reserve Account.
So long as any Parity Bonds are outstanding against the Bond Fund, the Finance Director shall
set aside and pay into the Bond Fund all ULID Assessments upon their collection and, out of the
Net Revenue of the Waterworks Utility, certain fixed amounts without regard to any fixed
proportion, namely, amounts, together with any ULID Assessments collected by the City and
deposited into the applicable account in the Bond Fund and investment earnings in that account,
as follows:
(a) Into the Principal and Interest Account, on or before each interest or principal and
interest payment date, an amount equal to the interest or the principal and interest to become due
and payable on that interest or principal and interest payment date of all Parity Bonds; and
(b) Into the Reserve Account, on the Issue Date of the Bonds, an amount sufficient,
together with the Reserve Insurance, to fully fund the Reserve Requirement for all Parity Bonds.
Money deposited in the Reserve Account for the Reserve Requirement for all Parity
Bonds may be decreased for any issue of Parity Bonds when and to the extent the City has
provided for an Alternate Security or Reserve Insurance for those bonds.
When the 2009 Bonds, 2010A Bonds, 2010T Bonds, 2013A Bonds, 2013T Bonds are no
longer outstanding, the following paragraph shall become effective: The City may establish, for
one or more series of Future Parity Bonds, a separate reserve requirement (which may be zero),
to be held in a separate reserve account, for the purpose of securing those Future Parity Bonds,
Page 51 of 95
-15-
51615205.7
and those Future Parity Bonds shall not be secured by amounts in the Reserve Account or by any
Reserve Insurance credited to the Reserve Account.
The City may establish additional accounts in the Bond Fund for the deposit of ULID
Assessments after the deposit of the required amount in the other funds.
The Reserve Account for any Future Parity Bonds may be accumulated from any other
funds which the City legally may have available for such purpose in addition to using ULID
Assessments and Net Revenue of the Waterworks Utility.
The City further agrees that when the required amounts have been paid into the Reserve
Account in the Bond Fund, the City will maintain those amounts therein at all times, except for
withdrawals therefrom as authorized herein, until there is sufficient money in the Bond Fund,
including the Reserve Account therein, to pay the principal of and interest to maturity on all
outstanding bonds payable from the Bond Fund, at which time no further payments need be
made into the Bond Fund, and the money in the Bond Fund, including the Reserve Account, may
be used to pay that principal and interest.
If there shall be a deficiency in the Principal and Interest Account to meet maturing
installments of either principal or interest, as the case may be, on the Bonds, the deficiency shall
be made up from the Reserve Account by first the withdrawal of cash and investments therefrom
and after all cash and investments have been depleted, then by the draws on the Reserve
Insurance for that purpose on a pro rata basis. Any deficiency created in the Reserve Account by
reason of any withdrawal shall then be made up from the Net Revenue of the Waterworks Utility
first available after making necessary provisions for the required payments into the Principal and
Interest Account. The Reserve Insurer shall be reimbursed first, within one year, to reinstate the
Reserve Insurance, before the balance of the Reserve Requirement is restored.
All money in the Reserve Account not needed to meet the payments of principal and
interest when due may be kept on deposit in the official bank depository of the City or in any
national bank or may be invested in any legal investment for City funds maturing not later than
the interest or principal and interest payment date when the money will be needed. Interest on
any of those investments or on that bank account shall be deposited in and become a part of the
Reserve Account until the Reserve Requirement shall have been accumulated therein, after
which time the interest shall be deposited in the Principal and Interest Account.
Notwithstanding the provisions for the deposit or maintenance of earnings in accounts of
the Bond Fund, any earnings which are subject to a federal tax or rebate requirement may be
withdrawn from the Bond Fund for deposit into a separate fund or account for that purpose.
If the City shall fail to set aside and pay into the Bond Fund the amounts which it has
obligated itself by this section to set aside and pay therein, the Owner of any Bond may bring
suit against the City to compel it to do so.
Section 12. Pledge, Lien and Charge for Payment of the Bonds. The Net Revenue of
the Waterworks Utility and ULID Assessments are pledged to the payment of the principal of
and interest on the Bonds when due and shall constitute a lien and charge upon that Net Revenue
of the Waterworks Utility and ULID Assessments prior and superior to any other charges
Page 52 of 95
-16-
51615205.7
whatsoever, except that the lien and charge upon such Net Revenue and ULID Assessments for
the Bonds shall be on a parity with the lien and charge thereon for any outstanding Parity Bonds.
Section 13. Flow of Funds. Funds in the Water and Sewer Revenue Fund shall be used
in the following order of priority:
(1) To pay Operating and Maintenance Expenses;
(2) To make all payments required to be made into the Bond Fund to pay and secure
the payment of the Annual Debt Service on all outstanding Parity Bonds;
(3) To make all payments required to be made into the Reserve Account and to make
all payments (principal and interest) required to be made in connection with
Reserve Insurance and any Alternate Security, except if there is not sufficient
money to make all payments for Reserve Insurance and any Alternate Security,
the payments shall be made on a pro rata basis with deposits in the Reserve
Account;
(4) To make all payments required to be made into the loan redemption funds or
accounts, and other revenue bond redemption funds created to pay the debt
service on any revenue obligation having a lien upon the Net Revenue of the
Waterworks Utility subordinate to the lien of the Bonds; and
(5) To make necessary additions, betterments, improvements or repairs to the
Waterworks Utility, and to retire by redemption or purchase any outstanding
Parity Bonds, or for any other lawful purpose.
Section 14. Covenants. The City covenants and agrees with the owner of each of the
Bonds as follows:
(a) It will not sell, lease, mortgage, or in any manner encumber or dispose of all the
properties of the Waterworks Utility unless provision is made for payment into the Bond Fund of
an amount sufficient either to defease all outstanding Parity Bonds or to pay the principal of and
interest on all the outstanding Parity Bonds in accordance with the terms thereof; and further
binds itself irrevocably not to mortgage, sell, lease or in any manner dispose of any part of the
Waterworks Utility that is used, useful and material to the operation of such utility unless
provision is made for replacement thereof or for payment into the Bond Fund of an amount
which shall bear the same ratio to the amount of outstanding Parity Bonds as the Net Revenue
available for debt service for such bonds for the twelve months preceding such sale, lease,
encumbrance or disposal from the portion of the Waterworks Utility so leased, encumbered or
disposed of bears to the Net Revenue available for debt service for such bonds from the entire
Waterworks Utility for the same period. Any such money so paid into the Bond Fund shall be
used to retire outstanding Parity Bonds at the earliest possible date.
(b) It will maintain and keep the Waterworks Utility in good repair, working order
and condition and to operate such utility and the business in connection therewith in an efficient
manner and at a reasonable cost.
Page 53 of 95
-17-
51615205.7
(c) It will maintain and collect such rates as will produce sufficient Net Revenue of
the Waterworks Utility, together with ULID Assessment collections, as will make available for
the payment of the principal of and interest on the Parity Bonds as they come due and for
payments as required to be made into the Reserve Account therein an amount at least equal to the
Coverage Requirement and, in addition thereto, that it will pay all Operating and Maintenance
Expenses and otherwise meet the obligations of the City as herein set forth.
(d) It will keep proper books of accounts and records separate and apart from other
accounts and records, in which complete and correct entries will be made of all transactions
relating to the Waterworks Utility of the City, and it will make available to any Owner on written
request the annual operating and income statements of the Waterworks Utility.
(e) Except to aid the poor or infirm, to provide for resource conservation or to
provide for the proper handling of hazardous materials, it will not furnish water or sewerage
service to any customer whatsoever free of charge and it shall, not later than 60 days after the
end of each calendar year, take such legal action as may be feasible to enforce collection of all
collectible delinquent accounts and, in addition thereto, shall promptly avail itself of its utility
lien rights, as set forth in applicable statutes.
(f) It will carry the types of insurance on its Waterworks Utility properties in the
amounts normally carried by private water and sewer companies engaged in the operation of
water and sewerage systems, and the cost of such insurance shall be considered a part of
Operating and Maintenance Expenses, or it will implement and maintain a self-insurance
program or an insurance pool program with reserves adequate, in the judgment of the City
Council, to protect the owners of the Parity Bonds against loss.
(g) To the extent permitted by State law, it will maintain its corporate identity and
existence so long as any Bonds remain outstanding.
(h) It will not grant any competing utility service franchise and will use all legal
means to prevent competition with the Waterworks Utility.
(i) If on the first day of January in any year, two installments of any ULID
Assessment are delinquent, or the final installment of any ULID Assessment has been delinquent
for more than one year, the City shall proceed with the foreclosure of the delinquent assessment
or delinquent installments thereof in the manner provided by law.
Section 15. Provisions for Future Parity Bonds. The City reserves the right to issue
Future Parity Bonds if the Parity Conditions set forth in Exhibit B are met and complied with at
the time of the issuance of those Future Parity Bonds.
Nothing herein contained shall prevent the City from issuing Future Parity Bonds to
refund any maturing Parity Bonds then outstanding, money for the payment of which is not
otherwise available.
Nothing herein contained shall prevent the City from issuing revenue bonds or incurring
other obligations that are a charge upon the Net Revenue of the Waterworks Utility of the City
subordinate or inferior to the payments required to be made therefrom into the Bond Fund for the
Page 54 of 95
-18-
51615205.7
payment of Parity Bonds or from pledging the payment of utility local improvement district
assessments into a redemption fund created for the payment of the principal of and interest on
those subordinate lien bonds or obligations as long as such utility local improvement district
assessments are levied for improvements constructed from the proceeds of those subordinate lien
bonds or obligations.
Section 16. 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 Finance 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.
(c) Designation of Bonds as “Qualified Tax-Exempt Obligations.” The Designated
Representative may designate the Bonds as “qualified tax-exempt obligations” for the purposes
of Section 265(b)(3) of the Code, if the following conditions are met:
(1) the Bonds are not “private activity bonds” within the meaning of
Section 141 of the Code;
(2) the reasonably anticipated amount of tax-exempt obligations (other
than private activity bonds and other obligations not required to be included in
such calculation) that the City and any entity subordinate to the City (including
any entity that the City controls, that derives its authority to issue tax-exempt
obligations from the City, or that issues tax-exempt obligations on behalf of the
City) will issue during the calendar year in which the Bonds are issued will not
exceed $10,000,000; and
(3) the amount of tax-exempt obligations, including the Bonds,
designated by the City as “qualified tax-exempt obligations” for the purposes of
Section 265(b)(3) of the Code during the calendar year in which the Bonds are
issued does not exceed $10,000,000.
Section 17. Refunding or Defeasance of Bonds. The City may issue refunding bonds
pursuant to State law or use money available from other lawful sources 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
Page 55 of 95
-19-
51615205.7
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 Gross Revenue of the Waterworks Utility, ULID Assessments, funds
and accounts obligated to the payment of the defeased Bonds, other than the right to receive the
funds so set aside and pledged, 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, subject only to the rights of the Owners of any other Parity Bonds then
outstanding.
If the refunding or defeasance plan provides that the defeased Bonds or the refunding
bonds to be issued be secured by money and/or Government Obligations pending the prior
redemption of the defeased Bonds and if such refunding plan also provides that certain money
and/or Government Obligations are pledged irrevocably for the prior redemption of the defeased
Bonds included in that refunding plan, then only the debt service on the Bonds which are not
defeased Bonds and the refunding bonds, the payment of which is not so secured by the
refunding plan, shall be included in the computation of the Coverage Requirement for the
issuance of Future Parity Bonds and the annual computation of the Coverage Requirement for
determining compliance with the rate covenants.
Section 18. Deposit of Bond Proceeds; Creation of Construction Accounts.
Immediately upon the issuance and delivery of the Bonds, the City shall cause the following to
occur:
(a) Reserve Account. Proceeds of the Bonds as needed to satisfy the Reserve
Requirement shall either be deposited in the Reserve Account or used to acquire Reserve
Insurance in an amount sufficient to satisfy the Reserve Requirement with respect to the Bonds.
(b) Refunding Plan. The remaining proceeds of the Refunding Bonds shall be
deposited with the Refunding Trustee as set forth in Section 19.
(c) Construction Accounts. The Finance Director is authorized to establish one or
more special accounts within the Water/Sewer Fund, designated as the Construction Accounts.
The remaining proceeds of the Project Bonds shall be paid into the Construction Accounts and
used to pay the costs of the Plan of Additions and the costs of issuing the Project Bonds (if not
included in the Refunding Plan). Until needed to pay those costs, the City may invest principal
proceeds deposited in the Construction Accounts temporarily in any legal investment, and the
investment earnings may be retained in such accounts and be spent for the purposes of those
accounts, except that earnings subject to a federal tax or rebate requirement may be withdrawn
therefrom and used for those tax or rebate purposes.
Page 56 of 95
-20-
51615205.7
Section 19. Use of Refunding Proceeds; the Refunding Plan.
(a) Appointment of Refunding Trustee. The Designated Representative is authorized
and directed to appoint a financial institution to serve as the Refunding Trustee and to perform
the duties of Refunding Trustee under this ordinance.
(b) Selection of Refunded Bonds. The Designated Representative is authorized and
directed to select the Refunding Candidates to be refunded by the Bonds. The Designated
Representative may choose to refund fewer than all of the Refunding Candidates. The Refunded
Bonds, as selected by the Designated Representative, shall be identified in the Refunding Plan
set forth in the Refunding Trust Agreement.
(c) Use of Refunding Proceeds; Purchase of Acquired Obligations. On the Issue
Date, sufficient proceeds of the sale of the Refunding Bonds, together with any City
Contribution, shall be deposited with the Refunding Trustee and used to discharge the
obligations of the City relating to the Refunded Bonds under the applicable Parity Bond
Ordinances by providing for the payment of the amounts required to be paid by the Refunding
Plan. To the extent practicable, such obligations shall be discharged fully by the Refunding
Trustee’s simultaneous purchase of the Acquired Obligations, bearing such interest and maturing
as to principal and interest in such amounts and at such times so as to provide, together with a
beginning cash balance, if necessary, for the payment of the amount required to be paid by the
Refunding Plan. The Acquired Obligations shall be listed and more particularly described in a
schedule attached to the Refunding Trust Agreement, but are subject to substitution as set forth
below. The Designated Representative is authorized and directed to approve the Acquired
Obligations, if any, to be purchased.
Any Project Bond proceeds deposited with the Refunding Trustee and not used to pay the
costs of issuance of the Project Bonds shall be returned to the City for deposit in the
Construction Accounts. Any Refunding Bond proceeds or other money deposited with the
Refunding Trustee not needed to carry out the Refunding Plan shall be returned to the City for
deposit in the Principal and Interest Account to pay interest on the Refunding Bonds on the next
upcoming interest payment date.
(d) Substitution of Acquired Obligations. The City reserves the right at any time to
substitute cash or other direct, noncallable obligations of the United States of America
(“Substitute Obligations”) for any of the Acquired Obligations if the City obtains (1) an opinion
of Bond Counsel to the effect that the interest on the Refunding Bonds and the Refunded Bonds
will remain excluded from gross income for federal income tax purposes under Sections 103,
148 and 149(d) of the Code, and (2) a verification by a nationally recognized independent
certified public accounting firm that such substitution will not impair the timely payment of the
amounts required to be paid by the Refunding Plan. Any surplus money resulting from the sale,
transfer, other disposition or redemption of the Acquired Obligations and the substitutions
therefor shall be released from the trust estate and transferred to the City to be used for any
lawful purpose.
(e) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or Substitute Obligations) and to make the
Page 57 of 95
-21-
51615205.7
payments required to be made pursuant to the Refunding Plan from the Acquired Obligations (or
Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance and the Refunding Trust Agreement. All Acquired Obligations (or Substitute
Obligations) and money deposited with the Refunding Trustee and any income therefrom shall
be held irrevocably, invested and applied in accordance with the provisions of the applicable
Parity Bond Ordinance authorizing the Refunded Bonds, this ordinance, chapter 39.53 RCW and
other applicable laws of the State and the Refunding Trust Agreement. All necessary and proper
fees, compensation and expenses of the Refunding Trustee and all other costs incidental to the
setting up of the escrow to accomplish the Refunding Plan and costs related to the issuance, sale
and delivery of the Bonds, including bond printing, rating agency fees, verification fees, Bond
Counsel's fees and other related expenses, shall be paid out of the proceeds of the Bonds.
(f) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan,
the Designated Representative is authorized and directed to execute and deliver to the Refunding
Trustee the Refunding Trust Agreement setting forth the duties, obligations and responsibilities
of the Refunding Trustee in connection with the payment, redemption and retirement of the
Refunded Bonds as provided herein and stating that the provisions for payment of the fees,
compensation and expenses of the Refunding Trustee set forth therein are satisfactory to it.
(g) Call for Redemption of the Refunded Bonds. The Designated Representative is
authorized to call the Refunded Bonds for redemption on their applicable Redemption Dates at
par, plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the
Bonds to the Purchaser. The Refunding Trustee is authorized and directed to give or cause to be
given such notices as required, at the times and in the manner required, pursuant to the
ordinances authorizing the issuance of the Refunded Bonds and the Refunding Trust Agreement
to carry out the Refunding Plan.
(h) Additional Finding with Respect to Refunding. Prior to the execution and delivery
of the Bond Purchase Agreement, the Designated Representative shall determine, on behalf of
the City, that the issuance, sale and delivery of the Refunding Bonds will effect a net present
value savings to the City and its ratepayers as set forth in paragraph (i)(2) of Exhibit A. The City
Council finds and determines that such net present value savings is a substantial savings and that
achieving such net present value savings by issuing the Bonds is in the best interest of the City
and in the public interest. In making the finding and determination that the issuance, sale and
delivery of the Bonds will effect such net present value savings, the Designated Representative
shall give consideration to the fixed maturities of the Refunding Bonds and the Refunded Bonds,
the costs related to the issuance, sale and delivery of the Refunding Bonds and the known earned
income from the investment of the proceeds of the issuance and sale of the Refunding Bonds and
the City Contribution, if any, used in the Refunding Plan pending payment and redemption of the
Refunded Bonds.
The Designated Representative further shall find and determine that the money to be
deposited with the Refunding Trustee to carry out the Refunding Plan will discharge and satisfy
the obligations of the City under the applicable Parity Bond Ordinance, and the pledges, charges,
trusts, covenants and agreements of the City therein made or provided for as to the Refunded
Bonds, and that the Refunded Bonds will no longer be deemed to be outstanding under
Page 58 of 95
-22-
51615205.7
applicable Parity Bond Ordinance immediately upon the deposit of such money with the
Refunding Trustee.
Section 20. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. It is anticipated that each Series of
Bonds will be sold by negotiated sale to the Purchaser and that the Purchaser will present a Bond
Purchase Agreement to the City offering to purchase each or multiple Series of Bonds. The
Designated Representative is authorized on the City’s behalf to accept the Final Terms of, and
execute, one or more Bond Purchase Agreements, based on the assessment of the Designated
Representative of market conditions, in consultation with appropriate City officials and staff,
Bond Counsel and other advisors, and so long as the terms provided therein are consistent with
the terms of this ordinance. 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 shall
set forth the Final Terms of each Series of Bonds.
(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 21. 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. 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 C.
Page 59 of 95
-23-
51615205.7
Section 22. 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 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 23. 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.
Section 24. 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 provided by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Pasco,
Washington, at a regular open public meeting, this 20th day of November, 2017.
Matt Watkins, Mayor
ATTEST:
Daniela Erickson, City Clerk
APPROVED AS TO FORM:
Foster Pepper PLLC
Bond Counsel
Page 60 of 95
A-1
51615205.7
EXHIBIT A
PARAMETERS FOR FINAL TERMS
(i) Principal Amount. The Bonds may be issued in one or more Series and shall not exceed
the aggregate principal amount of $10,000,000.
(ii) Date or Dates. Each Bond shall be dated its Issue Date, which date may not be later
than December 31, 2018.
(iii) 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.
(iv) 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 each Bond or any Series of Bonds.
No rate of interest for any Bond or any Series of Bonds may exceed 5.50%, and the true
interest cost to the City for each Series of Bonds may not exceed 5.00%.
(v) Payment Dates. Interest shall be payable semiannually on each June 1 and December 1
(or such other semiannual dates acceptable to the Designated Representative),
commencing no later than the next such semiannual date following the Issue Date of
such Series of Bonds. 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.
(vi) Final Maturity. The final maturity date of the Project Bonds following allocation, if
necessary under (xi) below, shall be no later than the date that is 30 years after the Issue
Date. The final maturity date of the Refunding Bonds following allocation, if necessary
under (xi) below, shall be no later than the final maturity date of the Refunded Bonds
refunded by such Refunding Bonds.
(vii) 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
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 10½ 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.
Page 61 of 95
A-2
51615205.7
(viii) Price. No rate of interest for any Bond or any Series of Bonds may exceed 98%, and the
true interest cost to the City for each Series of Bonds may not exceed 130%.
(ix) Section 265(b)(3) Designation. Pursuant to Section 16(c) of this ordinance, the
Designated Representative may designate any qualifying Series of Bonds as “qualified-
tax exempt obligations” for purposes of Section 265(b)(3) of the Code.
(x) Selection of Refunded Bonds. Under the terms and conditions of this ordinance, the
Designated Representative is authorized to select the Refunded Bonds to be refunded
by the Refunding Bonds. Refunded Bonds, as selected by the Designated
Representative, shall be identified in the applicable Bond Purchase Agreement and/or
the applicable Refunding Trust Agreement.
(xi) Allocation of Bonds. For any combined Series of Bonds, the Designated Representative
shall allocate the maturing principal amounts to the Project Bonds and the Refunding
Bonds in such manner as will comply with applicable requirements of the Code, meet
restrictions of State law and effectuate any other allocation deemed necessary or
advisable for accounting and debt administration purposes.
(xii) Minimum Savings. Each Series of Refunding Bonds shall produce a minimum net
present value savings to the City and its ratepayers of 5.00% (as a percentage of the
Refunded Bonds refunded by such Series of Refunding Bonds). Net present value
savings means the aggregate difference between (i) annual debt service on the
Refunded Bonds, less (ii) annual debt service on the Refunding Bonds (including
expenses related to costs of issuance of such Refunding Bonds) discounted to the Issue
Date using the yield on the Bonds as the discount rate, plus (iii) excess cash, if any
distributed to the City on the Issue Date, and less (iv) the amount of the City
Contribution, if any, made on such Issue Date.
(xiii) Other Terms and Conditions.
(1) 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.
(2) The Designated Representative must have determined that the Parity Conditions
have been met and satisfied as of the Issue Date of the Bonds.
Page 62 of 95
B-1
51615205.7
EXHIBIT B
PARITY CONDITIONS
(a) There shall be no deficiency in the Bond Fund.
(b) The ordinance providing for the issuance of the Future Parity Bonds shall provide
that all ULID Assessments shall be paid directly into the Bond Fund, except for any prepaid
assessments permitted by law to be paid into a construction fund or account.
(c) The ordinance providing for the issuance of such Future Parity Bonds shall
provide for the deposit into the Reserve Account (if such Future Parity Bonds are secured by the
Reserve Account) of (i) an amount equal to the Reserve Requirement for those Future Parity
Bonds from the Future Parity Bond proceeds, or (ii) Reserve Insurance or Alternate Security or
an amount plus Reserve Insurance or Alternate Security equal to the Reserve Requirement for
those Future Parity Bonds, or (iii) to the extent that the Reserve Requirement is not funded from
Future Parity Bond proceeds or Reserve Insurance or Alternate Security at the time of issuance
of those Future Parity Bonds, by no later than the fifth anniversary date from the dated date of
the respective issue of Future Parity Bonds from ULID Assessments, if any, levied and first
collected for the payment of the principal of and interest on those Future Parity Bonds and, to the
extent that ULID Assessments are insufficient, then from the Net Revenue of the Waterworks
Utility in approximately equal annual payments, the Reserve Requirement for those Future Parity
Bonds. No Reserve Insurance or Alternate Security may be used to satisfy the Reserve
Requirement for Future Parity Bonds unless (i) the insurance policy or Alternate Security is non-
cancelable and (ii) the insurer or provider of the Alternate Security as of the time of issuance of
such insurance or Alternate Security is rated in the highest rating categories by both Moody’s
Investors Service, Inc., and Standard & Poor’s Ratings Services; however, when the 2009
Bonds, 2010A Bonds, 2010T Bonds, 2013A Bonds, 2013T Bonds are no longer outstanding,
the Reserve Insurance or Alternate Security may be rated as of the time of issuance of such
insurance or Alternate Security in one of the two-highest categories by either Moody’s
Investors Service, Inc., or S&P Global.
(d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide
for the payment of mandatory redemption or sinking fund requirements into the Bond Fund for
any Term Bonds to be issued and for regular payments to be made for the payment of the
principal of such Term Bonds on or before their maturity, or, as an alternative, the mandatory
redemption of those Term Bonds prior to their maturity date from money in the Principal and
Interest Account.
(e) There shall be on file from a licensed professional engineer experienced in the
design, construction and operation of municipal utilities, or from an independent certified public
accountant, a certificate showing that in his or her professional opinion the Net Revenue of the
Waterworks Utility for any 12 consecutive calendar months out of the immediately preceding 24
calendar months shall be equal to the Coverage Requirement for each year thereafter, except that
such certificate may be provided by a City representative if it is based solely upon actual
historical Net Revenue of the Waterworks Utility without any adjustment.
Page 63 of 95
B-2
51615205.7
The certificate, in estimating the Net Revenue of the Waterworks Utility available
for debt service, shall use the historical Net Revenue of the Waterworks Utility for any 12
consecutive months out of the 24 months immediately preceding the month of delivery of the
Future Parity Bonds. Net Revenue of the Waterworks Utility may be adjusted to reflect:
(1) Any changes in rates in effect and being charged or expressly adopted by
ordinance to take effect within 180 days after the date of this Certificate;
(2) Income derived from customers of the Waterworks Utility that have
become customers during the 12 consecutive month period or thereafter adjusted to
reflect one year’s net revenue from those customers;
(3) Revenue from any customers to be connected to the Waterworks Utility
who have paid the required connection charges;
(4) Revenue received or to be received which is derived from any person,
firm, corporation or municipal corporation under any executed contract for water, sewage
disposal or other utility service, which revenue was not included in the historical Net
Revenue of the Waterworks Utility;
(5) The engineer’s or accountant’s estimate of the Net Revenue of the
Waterworks Utility to be derived from customers to connect within 180 days after the
date of the completion of the additions to and improvements and extensions of the
Waterworks Utility to be paid for out of the proceeds of the sale of the additional Future
Parity Bonds or from other additions to and improvements and extensions of the
Waterworks Utility then under construction and not fully connected to the facilities of the
Waterworks Utility when such additions, improvements and extensions are completed;
and
(6) Any increases or decreases in Net Revenue as a result of any actual or
reasonably anticipated changes in Operating and Maintenance Expense subsequent to the
12 month period.
If Future Parity Bonds proposed to be so issued are for the sole purpose of refunding
outstanding bonds payable from the Bond Fund, such certification of coverage shall not be
required if the amount required for the payment of the principal and interest in each year for the
refunding bonds is not increased over the amount for that year required for the bonds to be
refunded thereby and if the maturities of such refunding bonds are not extended beyond the
maturities of the bonds to be refunded thereby.
Prior: Ordinance No. 3915, Section 18 (2009 Bonds)
Ordinance No. 3962, Section 21 (2010A Bonds; 2010T Bonds)
Ordinance No. 4126, Section 16 (2013A Bonds; 2013T Bonds)
Ordinance No. 4254, Section 15 (2015 Bonds)
Page 64 of 95
C-1
51615205.7
EXHIBIT C
[Form of]
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
City of Pasco, Washington
[Name of Series]
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. 4365 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)(i) (“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.
Page 65 of 95
C-2
51615205.7
(iii) Timely notice of a failure by the City to provide required annual financial
information described in paragraph (b)(i) on or before the date specified in
paragraph (b)(ii).
(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; (2) a statement of authorized, issued and
outstanding bonded debt secured by the Net Revenue of the Waterworks Utility; (3) debt
service coverage ratios; and (4) general customer statistics for the Waterworks Utility;
(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, 2017; 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.
If not submitted as part of the annual financial information described in paragraph (b)(i)
above, the City will provide or cause to be provided to the MSRB audited financial statements,
when and if available.
(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, maturity or prior redemption 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.
Page 66 of 95
C-3
51615205.7
(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
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 Finance
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.
Page 67 of 95
51615205.7
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. 4365 (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 November 20, 2017, 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 __________ ___, 2017.
3. 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: __________ ___, 2017.
CITY OF PASCO, WASHINGTON
Daniela Erickson, City Clerk
Page 68 of 95
Projects2017 Reimbursement201820192020Capital Avenue Lift Station CP7SE1A1603 448,000 0 0 0Pearl Street Lift Station Replacement CP7SE1A1541 75,000 223,000 510,000 580,0009th & Washington Lift Station CP7SE2R1603 50,000 830,000 0 0Road 36 Lift Station Upgrades CP7SE2R1602 50,000 0 0 030" Sanitary Sewer Main (NW Area) CP7SE2A1402 360,000 2,500,000 0 0The Maitland Lift Station CP7SE1A1543 68,108 0 0 016001 Kahlotus Lift Station CP7SE1A1601 10,000 0 0 017013 Sewer Immediate Needs CP9SE1A1701 475,000 0 0 013001 WWTP Primary Clarifier 3 CP7SE2A1302 70,000 0 0 014002 West Pasco Trunk Sewer Relining (Transmission Main Rehabilitation ‐ Rd 60 to 100)0 50,000 1,295,000 000060 WWTP Facility Plan Capital Improvement Projects 0 500,000 5,000,000 5,000,00000059 Wastewater Treatment Plant PLCs and Controls Updgrade 0 750,000 0 01,606,108 4,853,000 6,805,000 5,580,000
Page 69 of 95
AGENDA REPORT
FOR: City Council November 15, 2017
TO: Dave Zabell, City Manager Regular Meeting: 11/20/17
FROM: Stan Strebel, Deputy City Manager
Executive
SUBJECT: Property Purchase
I. REFERENCE(S):
Vicinity Map
Real Estate Purchase and Sale Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve the Purchase and Sale Agreement with the Pasco School
District for 20.32 acres located north of Court Street, between Roads 48-52 and,
further, authorize the City Manager to execute all necessary documents.
III. FISCAL IMPACT:
Purchase Price $883,920 (REET 1, Park Development)
IV. HISTORY AND FACTS BRIEF:
Previously the City entered into an agreement to purchase property (20.32 acres) from
the Pasco School District located north of Court Street and between Roads 48-52.
While most of the property is currently undeveloped, a portion of the property has been
used for playfields for several years.
Staff considers the property suitable for the eventual relocation of Fire Station 84 and
for development as a community park pursuant to the Park Master Plan.
V. DISCUSSION:
The City has reviewed the property for possible environmental and/or title
encumbrances and has identified none. As such, staff recommends the Council
approve the purchase in the total amount of $883,920 (REET1, Park Development
fund) and, further, authorize the City Manager to complete the purchase.
Page 70 of 95
This item was discussed at the November 13 Workshop meeting.
Page 71 of 95
COURT
PEARL
ROAD 48ROAD 52PEARL
VICINITY MAPPROPOSED PAR K and FIRE STATION 84
Page 72 of 95
• TIPP~JJ
--a;-..; ... w~;..-c..;·
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Suite F
Pasco, WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
c Commercial Brokers ~
Associallon 201 1
All RIGHTS RESERVED
CBA Form PS-1A
P11cllase & Sale Agaoment
Rev. 11201 1
Page t of 13
This has btum prepared for submission to your attorney for review and approval prior to
signing. No representation Is mads by licensee as tofts s uff'teiency or tax consequences
Reference Date: September 22, 2017
City of Pasco. a Washington Municipal Corporation ("Buyer") agrees to buy and Pasco School District No_. 1 ("Seller")
a gree's to sell , on the following terms, the commercial real estate and all improvements thereon (collectively, the
"Property") commonly known as Franklin County Tax Parcel Nos. 119·1 1 1-050. 119·111-069 and 119-112-031.
consisting of±/-20.32 acres in the City of Pasco, Franklin County, Washington, legally desc.ribed on attached Exhib it
A. The Reference Date above is intended to be used to reference this Agreement and is not the date of "Mutual
Acceptance," which is defined in Section 23.
1. PURCHASE PRICE. The purchase price is Eight Hundred Eighty Three Thousand Nine Hundred Twenty Dollars
($883.920.00) payable as follows (check only one):
1:8:1 All cash at closing with no financing contingency.
0 All cash at closing contingent on new financing in accordance w ith the Financing Addendum (attach CBA
Form PS_FIN).
D $ __ OR __ % of the purchase price in cash at closing with the balance of the purchase price paid as
follows (check one or both, as applicable): D Buyer's assumption of the outstanding principal balance as of
the Closing Date of a first lien note and deed of trust (or mortgage), or real estate contract, in accordance w ith the
Financing Addendum (attach CBA Form PS_FIN); 0 Buyer's delivery at closing of a promissory note for the
balance of the purchase price, secured by a deed of trust encumbering the Property, in accordance with the
Financing Addendum (attach CBA Form PS_FIN ).
D Other: __ .
2. EARNEST MONEY. The earnest money in the amount of $40.000.00 shall be in the form of D Cash 1:8:1
Personal check D Promissory note (attached CBA Form EMN) D Other: __
The earnest money shall be held by 0 Selling Firm 181 Closing Agent. Selling Broker may, however, transfer
the earnest money to Closing Agent.
Buyer shall deliver the earnest money no later than:
1:8:1 five (5) days after Mutual Acceptance.
D On the last day of the Feasibility Period defined in Section 5 below.
D Other:
If the earnest money is to be held by Selling Firm and is over $10,000, it shall be deposited to: D Selling Firm 's
pooled trust account (with interest paid to the State Treasurer) D A separate interest bearing trust account in
Selling Firm's name. The interest, if any, shall be credited at closing to Buyer. If this sale fails to close, whoever is
entitled to the earnest money is entitled to interest.
Selling Rrm shall deposit any check to be held by Selling Rrm within 3 days after rece ipt or Mutual Acceptance,
whichever occurs later. Buyer agrees to pay financing and purchase costs incurred by Buyer. Unless otherwise
provided in this Agreement, the earnest money shall be applicable to the purchase price.
3 . EXHIBITS AND ADDENDA. The following Exhibits and Addenda are made a part of th is Agreement:
1:8:1 Exhibit A~ Legal Description
INITIALS : Buyer a~ Date qJ~/11 7 Seller r;zjwot~~
Buyer -------Date ________ .Seller _____ ...:;v;___Date --------
Page 73 of 95
TIPP~I.T
··:~~'!·::~~-~~~-
Tippett Company LLC
2815 Sa int Andrews Lp I PO Box 3027, Suite F
Pasco, WA 99302
Phone: (509) 545 -3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
0 Earnest Money Promissory Note, CBA Form EMN
0 Promissory Note, LPB Form No. 28A
0 Short Form Deed of Trust, LPB Form No. 20
0 Deed ofTrust Rider, CBA Form DTR
0 Utility Charges Addendum, CBA Form UA
0 FIRPTA Certification, CBA Form 22E
0 Assignment and Assumption, CBA Form PS-AS
[8J Addendum/Amendment, CBA Form PSA
0 Back-Up Addendum, CBA Form BU-A
0 Vacant Land Addendum, CBA Form VLA
0 Financing Addendum, CBA Form PS_FIN
0 Tenant Estoppel Certificate, CBA Form PS_TEC
0 Defeasance Addendum, CBA Form PS_D
0 Other
Cl Commercial Broken! CD("
Association 201 1
All RIGHTS RES ERVED
CBA Foon PS-1A
Pl.n:h .. e & Sale Agreement
Rev. 112011
Page2of 13
4. SELLER'S UNDERLYING FINANCING. Unless Buyer is assuming Seller's underlying financing , Seller shall be
responsible for confirming the existing underlying financing is not subject to any "lock out• or simi lar covenant
which would prevent the lender's lien from being released at closing. In addition, Seller shall provide Buyer notice
prior to the end of the Feasibility Period if Seller is required to substitute securities for the Property as collateral for
the underlying financing (known as "defeasance"}. If Seller provides this notice of defeasance to Buyer, then the
parties shall close the transaction in accordance with the process described in CBA Form PS_D or any different
process identified in Seller's defeasance notice to Buyer. ·
5 . FEASI BILITY CONTINGENCY. Buyer's obligations under this Agreement are conditioned upon Buyer's
satisfaction in Buyer's sole discretion, concerning all aspects of the Property, including its physical condition ; the
presence of or absence of any hazardous substances ; the contracts and leases affecting the property; the
potential financial performance of the Property; the availability of government permits and approvals; and the
f easibility of the Property for Buyer's intended purpose. This Agreement shall terminate and Buyer shall receive a
refund of the earnest money unless Buyer gives written notice to Seller within 60 days (30 days if not filled in} (the
"Feas ibility Period") of Mutual Acceptance stating that this condition is satisfied . If such notice is timely given , the
feas ibi lity contingency stated in this Section 5 shall be deemed to be satisfied.
a. Books, Records, Leases, Agreements. Seller shall make available for inspection by Buyer and its agents
w ithin __ days (2 days if not f illed in} after Mutual Acceptance all documents in Seller's possession or control
relating to the ownership, operation, renovation or development of the Property, excluding appraisals or othe r
statements of value , and including: statements for real estate taxes , assessments, and utilities for the last three
years and year to date; property management agreements and any other agreements with professionals or
consultants ; leases or other agreements re lating to occupancy of all or a portion of the Property and a su ite-by-
suite schedule of tenants , rents, prepaid rents, deposits and fees; plans, spec ifications , permits, applications ,
drawings, surveys, and studies; maintenance records, acco unting records and audit reports for the last three
years and year to date; and "Vendor Contracts" which shall include maintenance or service contracts , and
installments purchase contracts o r leases of personal property or fixtures used in connection with the Property.
Buyer shall determine within the Feas ibility Period: (i} whether Seller will agree to terminate any objectionable
Vendor Contr acts; and (ii) whether Seller will agree to pay any damages or penalties resulting from the
termination of objectionable Vendor Contracts. Buyer's waiver of the Feasibility Contingency shall be deemed
Buyer's acceptance of all Vendor Contracts which Seller has not agreed in w rit ing to terminate. Buyer shall be
solely responsible for obtain ing any required consents to such assumption and the payment of any assumption
fees . Selle r shall cooperate w ith Buyer's efforts to receive any such consents but shall not be required to incur
IN ITIALS: Buyer ~ o:::: Date q / ,;J.(p /I 7 .. :. · . 'Se iJer .. ·. 9-~/l--Date "i /i 1/ l (
Buyer _______ Date ________ Seller _______ Date -----
Page 74 of 95
• TIPPETT ........
L..it:;;A.~~~·.:,
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Suite F
Pasco, WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
~ Commercial Bro kers CB('
Association 2011
ALL RIGHTS RESERVED
CBA FotrnPS-1A
PUfChase & Sale Agre~ment
Rev. 1/2011
Page 3 of 13
any out-of-pocket expenses or liability in doing so. Seller shall transfer the Vendor Con tracts as provided in
Section 17.
b. Access. Seller shall permit Buyer and its agents , at Buyer's sole expense and risk to enter the Property at
reasonable times subject to the rights of and after legal notice to tenants, to conduct inspections concerning the
Property and improvements, including without limitation, the structural condition of improvements, hazardous
materials, pest infestation, soils conditions, sensitive areas, wetlands, or other matters affecting the feasibility of
the Property for Buyer's intended use. Buyer shall schedule any entry onto the Property with Seller in advance
and shall comply with Seller's reasonable requirements including those relating to security, confidentiality, and
disruption of Seller's tenants. Buyer shall not perform any invasive testing including environmental inspection$
beyond a phase I assessment or contact the tenants or property management personnel without obtaining the
Seller's prior written consent, which shall not be unreasonably withheld . Buyer shall restore the Property and
improvements to the same condition they were in prior to inspection. Buyer shall be solely responsible for all
costs of its inspections and feasibility analysis and has no autho ri ty to bind the Property for purposes of statutory
liens. Buyer agrees to indemnify and defend Seller from all liens, costs, claims, and expenses, including
attorneys' and experts' fees, arising from or relating to entry onto or inspection of the Property by Buyer and its
agents. This agreement to indemnify and defend Seller shall survive closing. Buyer may continue to enter the
Property in accordance with the foregoing terms and conditions after removal or satisfaction of the feasibil ity
contingency only for the purpose of teasing or to satisfy conditions of financing.
c. Buyer waives the right to receive a seller disclosure statement ("Form 17 -Commercial") if required by RCW
64.06. However, if Seller would otherwise be required to provide Buyer with a Form 17-Commerciat, and if the
answer to any of the questions in the section of the Form 17-Commercial entitled "Environmental" would be "yes,"
then Buyer does not waive the receipt of the "Environmental" section of the Form 17-Commercial which shall be
provided by Seller.
6. TITLE INSURANCE.
a. Title Report. Seller authorizes Buyer, its Lender, Usting Broker, Selling Broker or Closing Agent, at Seller's
expense, to apply for and deliver to Buyer a ~ standard 0 extended (standard, if not completed) coverage
owner's pol icy of title insurance. Buyer shall pay the increased costs associated with an extended policy including
the excess premium over that charged for a standard coverage policy, and the cost of any survey requ ired by the
title insurer. The title report shall be issued by Chicaao Title Insurance Company (a title company of Seller's
choice, if not completed}. If Seller previously received a prel iminary comm itment from a t itle insurer that Buyer
declines to use, Buyer shall pay any cancellation fee owing to the original title insurer. Otherwise, the party
applying for title insurance shall pay any title cancellation fee, in the event such a fee is assessed.
b. Permitted Exceptions. Buyer shall notify Seller of any objectionable matters in the t itle report or any
supplemental report within the earlier of: (1} twenty (20) days after Mutual Acceptance of this Agreement; or (2)
the expiration of the Feasibility Period . This Agreement shall terminate and Buyer shall receive a refund of the
earnest money, less any costs advanced or committed for Buyer, unless within five (5) days of Buyer's notice of
such objections (1} Seller agrees, in writing, to remove all objectionable provisions or (2} Buyer notifies Seller that
Buyer waives any objections which Seller does not agree to remove. If any new title matters are disclosed in a
supplemental title report, then the preceding termination, objection and waiver provisions shall apply to the new
title matters except that Buyer's notice· of objections must be delivered within five (5} days of delivery of the
supplemental report and Seller's response or Buyer's waiver must be delivered within two (2) days of Buyer's
notice of objections. The closing date shall be extended to the extent necessary to permit time for these notice s.
Buyer shall not be required to o bject to any mortgage or deed of trust liens, or the statutory lien for real property
taxes, and the same shall not be deemed to be Permitted Exceptions ; provided, however, that the lien securing
any financing which Buyer has agreed to assume shall be a Permitted Exception. Except for the fo rego ing, those
INITIALS: Buyer ~J-Moate q /;;)..&>(t] SeHer ;J..fL.. Date ~ /-z.1/t-:t
Buyer Date Seller Date -----
Page 75 of 95
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Suite F
Pasco, WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
C) COIIVT>ercl al Brokers CD('
Assodtl101'1 2011
ALL RIGHTS RESERVED
CBA Fonn PS-1A
Purchase & Sale Agreement
Rev.1/2011
Page 4of 13
provisions not objected to or for which Buyer waived its objections shall be referred to collectively as the
"Permitted Exceptions." Seller shall cooperate with Buyer and the title company to clear objectionable title
matters but shall not be required to incur any out-of-pocket expenses or liability other than payment of monetary
encumbrances not assumed by Buyer and proration of real property taxes, and Seller shall provide an owner's
affidavit containing the information and reasonable covenants requested by the title company. The title policy shall
contain no exceptions other than the General Exclusions and Exceptions common to such form of policy and the
Permitted Exceptions. ·
7. CLOSING OF SALE. The sale shall be closed ~no later than 30 days from the date the Feasibility Contingency
is satisfied, ("Closing") by Bonnie Thompson -Chicago Title Insurance Company ("Closing Agenr) (Seller shall
select the Closing Agent, if not completed). Buyer and Seller shall deposit with Closing Agent by 12:00 p .m. on
the scheduled Closing date all instruments and monies required to complete the purchase in accordance with this
Agreement. "Closing" shall be deemed to have occurred when the deed is recorded and the sale proceeds are
available to Seller. Time is of the essence in the performance of this Agreement. Sale proceeds shall be
considered available to Seller, even though they cannot be disbursed to Seller until the nex1 business day after
Closing . Notwithstanding the foregoing, if Seller informed Buyer during the Feasibility Period that Seller's
underlying financing requires that it be defeased and may not be paid off, then Closing shall be conducted in
accordance with the three-day closing process described in CBA Form PS_D. This Agreement is intended to
constitute escrow instructions to Closing Agent. Buyer and Seller will provide any supplemental instructions
requested by Closing Agent provided the same are consistent with th is Agreement.
8. CLOSING COSTS AND PRORATIONS. Seller shall deliver an updated rent roll to Closing Agent not later than
two (2) days before the scheduled Closing date in the form required by Section 5(a) and any other information
reasonably requested by Closing Agent to allow Closing Agent to prepare a settlement statement for Closing.
Seller certifies that the information contained in the rent roll is correct as of the date submitted. Seller shall pay
the premium for the owner's standard coverage title policy. Buyer shall pay the excess premium attribu1able to
any extended coverage or endorsements requested by Buyer, and the cost of any survey required in connection
with the same. Seller and Buyer shall each pay one-half of the escrow fees . Any real estate excise taxes shall be
paid by the party who bears primary responsibility for payment under the applicable statute or code. Real and
personal property taxes and assessments payable in the year of closing ; collected rents on any existing
tenancies; interest; utilities; and other operating expenses shall be pro-rated as of Closing . If tenants pay any of
the foregoing expenses directly, then Closing Agent shall only pro rate those expenses paid by Seller. Buyer
shall pay to Seller at Closing an additional sum equal to any utility deposits or mortgage reserves for assumed
financing for which Buyer receives the benefit after Closing. Buyer shall pay all costs of financing including the
premium for the lender's title policy. If the Property was taxed under a deferred classification prior to Closing,
then Seller shall pay all taxes, interest, penalties, deferred taxes or similar items which result from removal of the
Property from the deferred classification. At Closing, all refundable deposits on tenancies shall be credited to
Buyer or delivered to Buyer for deposit in a trust account if required by state or local law. Buyer shall pay any
sales or use tax applicable to the transfer of personal property included in the sale.
a. Unpaid Utility Charges. Buyer and Seller D WAIVE [81 DO NOT WAIVE (do not waive if neither box
checked) the right to have the Closing Agent disburse closing funds necessary to satisfy unpaid utility charges
affect ing the Property pursuant to RCW 60.80. If "do not waive" is checked, then attach CBA Form UA ("Utility
Charges" Addendum) to this Agreement.
9. POST-CLOSING ADJUSTMENTS, COLLECTIONS, AND PAYMENTS. After Closing, Buyer and Seller shall
reconcile the actual amount of revenues or liabilities upon receipt or payment thereof to the ex1ent those items
were prorated or credited at Closing based upon estimates. Any bills or invoices received by Buyer after Closing
which relate to services rendered or goods delivered to the Seller or the Property prior to Closing shall be paid by
INITIALS: Buyer ~ Date _<q__,/_~ __ ·1_1_1 '-----'Seller _--=..fiL-...;__ ____ Date
Buyer _______ Date _______ __:Seller _______ oate -----
Page 76 of 95
Tippett Company LLC
2815 Saint And rews Lp I PO Box 3027, Su ite F
Pasco , WA 99302
Phone: (509) 545 -3355
Fax : (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
e Cornmo rciai Biokers ~
Assoc•aUon 201 1
Al l R IG HTS R ESERVED
CBA F onn PS -1A
Purchase & Sal e Agroe.ment
Rev. 11201 1
Page 5 of 13
Seller upon presentation of such bill or invoice. At Buyer's option, Buyer may pay such bill or invoice and be
reimbursed the amount paid plus interest at the rate of 12o/o per annum beginning fifteen (15) days f rom the date
of Buyer's written demand to Seller for reimbursement until such reimbursement is made . Notwithstanding the
foregoing, if tenants pay certain expenses based on est imates subject to a post-closing reconciliation to the actual
amount of those e xpenses, then Buyer shall be entitled to any surplus and shall be liable for any credit result ing
from the reconciliation. Rents collected from each tenant after Closing shall be applied first to rentals due most
recently from such tenant for the period after closing , and the balance shall be applied for the benefit of Seller for
delinquent rentals owed for a period prior to closing. The amounts applied for the benefit of Seller shall be turned
over by Buyer to Seller promptly after receipt. Seller shall be entitled to pursue any lawful methods of collec tion of
delinquent rents but shall have no right to evict tenants after Clos ing.
10. OPERATIONS PRIOR TO CLOSING. Prior to Closing, Seller shall continue to operate the Property in the
ordinary course of its business and maintain the Property in the same or better condition than as existing on the
date of Mutual Acceptance but shall not be required to repair material damage from casualty except as otherwise
provided in th is Agreement. After the Feasibility Period , Seller shall not enter into or modify e xi sting rental
agreements or leases (except that Seller may enter into, modify, extend, renew or terminate residential rental
agreements or residential leases in the ordinary course of its business), service contracts, or other agreements
affecting the Property which have terms extending beyond Closing without first obta ining Buye r's consent, which
shall not be unreasonably withheld.
11. POSSESSION. Buyer shall be entitled to possession~ on closing D __ (on clos ing , if not completed).
Buyer shall accept possession subject to all tenancies d isclosed to Buyer during the Feasibility Period .
12. SELLER'S REPRESENTATIONS. Except as disclosed to or known by Buyer prior to the satisfaction or waiver of
the feasibil ity contingency stated in Section 5 above, including in the book s, records and documents made
available to Buyer, or in the title report or any supplemental report or documents referenced therein , Seller
represents to Buyer that, to the best of Seller's actual knowledge, each of the following is true as of th e date
hereof: (a) Seller is authorized to enter into the Agreement, to sell the Property, and to perform its o bligation s
under the Agreement; (b) Th e books, record s, leases, agreements and other items delivered to Buyer pursuant to
this Agreement comprise all material documents in Seller's possession or control regarding the operation and
condition of the Property; (c) Seller has not received any written notices that the Property or the bu sin e ss
conducted thereon violate any applicable laws, regulations , codes and ordinances; (d) Seller has all certifi cates of
occupancy, permits , and other governmental consents necessary to own and operate the Property for it s current
use; (e) There is no pending or threatened litigation which would adversely affect the Property or Buye r's
ownership thereof after Closing ; (f) There is no pending or threatened condemnation or similar proceedings
affecting the Property, and the Property is not within the boundaries of any planned or authorized local
improvement district; (g) Seller has paid (except to the extent prorated at Closing) all local, state and federa l taxes
(other than real and personal property taxes and assessments described in Section 8 above) attributable to the
period prior to closing which , if not paid, could constitute a lien on Property (includ ing any personal property), or
for which Buyer may be held liable after Closing ; (h) Seller is not aware of any concealed material defects in th e
Property except as disclosed to Buyer in writing during the Feasib ility Period; (i) The re are no Ha zardou s
Substances (as defined below) currently located in, on, or under the Property in a manner or quantity that
presently violates any Environmental Law (as defined below); there are no underground storage tanks loc ated on
the Property; and there is no pending or threatened investigation or remedial action by any governmental agen cy
regarding the release of Hazardous Substances or the vio lation of Environmental Law at the Property . As used
herein, the term "Hazardous Substances" shall mean any substance or material now or hereafter defin ed or
regulated as a hazardous substance, hazardous waste , toxic substan ce , pollutant, or contaminant und er any
federal , state, or local law, regulation, or ordinance governing any substance that could cause actual or susp ected
INITIALS' """"~Dale q {;;>{.,> )/7 S.Ue•_· __ fu=....-.=:.-:;....-__ Date o/v1/l7
Buyer Date ________ .Seller _______ Dale ____ _
Page 77 of 95
• TIPP~.!.!
...... ltt-:i'~~.~--...... , ·' .......... ~
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027 , Suite F
Pasco, WA 99302
Phone: (509 ) 545-3355
Fax : (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
o Commercial Brokers CD('
Association 20 11
ALL RIGHTS RESERVED
CBA Folm PS-1 A
f'l.n:hase & Sale Agreement
Rev. 112011
Pages of 13
harm to human health or the environment ("Environmental Law"). The term "Hazardous Substances • spec ifically
includes, but is not limited to, petroleum, petroleum by-products, and asbestos.
If prior to Closing Seller or Buyer discovers any information which would cause any of the representations above
to be fa lse if the same we re deemed made as of the date of such discovery, then the party discovering the same
shall promptly notify the other party in writing. If the newly-discovered information will result in costs or liability to
Buyer in excess of the lesser of $100,000 or five percent (5%) of the purchase price stated in this Agreement, or
will materially adversely affect Buyer's intended use of the Property, then Buyer shall have the right to terminate
the Agreement and rece ive a refund of its earnest money. Buyer shall give notice of termination within five (5)
days of discovering or receiving written notice of the new information. Noth ing in this paragraph shall prevent
Buyer from pursuing its remedies against Seller if Seller had actual knowledge of the newly-discovered
information such that a representation provided for above was fa lse.
13. AS-IS. Except for those representations and warranties specifically included in this Agreement: (i) Seller makes
no representations or warranties regarding the Property; (ii) Seller hereby disclaims, and Buyer hereby waives ,
any and all representations or warranties of any kind, express or implied , concerning the Property or any po rti on
thereof, as to its condi ti on, va lue, compliance with laws , status of perm its or approvals , existence or absence of
hazardous material on site , occupancy rate or any other matter of sim ilar or d iss imilar nature relating in a ny way
to the Property, including the warranties of fitness for a particular purpose, tenantability, habitability and use; (iii)
Buyer otherwise takes the Property "AS IS ;" and (iv) Buyer represents and warrants to Seller that Buyer has
sufficient experience and expertise such that it is reasonable for Buyer to rely on its own pre-closing inspections
and investigations.
14. PERSONAL PROPERTY.
a. This sale includes all right, title and interest of Seller to the following tangible personal property: cgj None
0 That portion of the personal property located on and used in connection with the Property, which Seller will
itemize in an Exhibit to be attached to th is Agreement within ten (1 0) days of Mutual Acceptance (None, if not
completed). The value assigned to the personal property shall be $ __ (if not completed , the County-assessed
value if available , and if not available, the fair market value determined by an appraiser selected by the Listing
Broker and Selling Broker). Seller warrants title to, but not the condition of, the personal property and shall convey
it by bill of sale.
b. In addition to the leases and Vendor Contracts assumed by Buyer pursuant to Section 5(a) above, this sale
includes all right , title and interest of Seller to the following i.ntangible property now or hereafter existing w ith
respect to the Property including without limitat ion : all rights-of-way, rights of ingress or egress or other interests
in , on, or to, any land, highway, street, road, o r avenue, open or proposed, in, on, or across , in front of, abutting or
adjoining the Property; all rights to uti lit ies serving the Property; all drawings, p lans, spec ifications and other
architectural or engineering work product; all governmental permits, certificates, licenses, authorizations and
approvals ; all rights, claims , causes of action , and warranties under contracts with contractors, engineers ,
architects , consultants or other parties associated with the Property; all utility, security and other deposits and
reserve accounts made as security for the fu lfillment of any of Seller's obli gations ; any name of or telephone
numbers for the Property and related trademarks, service marks or trade dress ; and guaranties, warranties or
other assurances of performance received .
15. CONDEMNATION AND CASUALTY. ·Seller bears all risk of loss until Closing, and thereafter Buyer shall bear
the risk of loss. Buyer may terminate this Agreement and obtain a refund of the earnest money if improvements
on the Property are destroyed or materially damaged by casualty before Closing, or if condemnation proceedings
are commenced against all or a portion of the Property before Closing. Damage will be considered material if the
cost of repair exceeds the lesser of $100,000 or five percent (5%) of the purchase price stated in this Agreement.
Alternatively , Buyer may elect to proceed with closing, in which case , at Closing, Seller shall assign to Buyer all
INITI ALS: Buyer ~ Date q \~) (p l\1 Seller . =\'VI c Date tt)1c1 ,,_
Buyer Da te Seller Date -----
Page 78 of 95
• TIPPETT
.~ ~.il:'* ~.~ .~
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Suite F
Pasco, WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
o Commerci al BrokoNI CIW
Assoeialion 2011
All RIGHTS RESERVED
CBA Form PS-1A
Pura-& Sale Agr'"!men l
Rev.1/201 1
Page 7 ol 13
claims and right to proceeds under any property insurance policy and shall credit to Buyer at Closing the amount
of any deductible provided for in the policy.
16. FIRPTA-TAX WITHHOLDING AT CLOSING. Closing Agent is instructed to prepare a certification (CBA or
NWMLS Form 22E, or equivalent) that Seller is not a "foreign person" w ithin the meaning of the Foreign
Investment in Real Property Tax Act, and Seller shall sign it on or before Closing . If Seller is a foreign person , and
this transaction is not otherwise exempt from FIRPT A, Closing Agent is instructed to withhold and pay the
required amount to the Internal Revenue Service.
17. CONVEYANCE. Title shall be conveyed by a Statutory Warranty Deed subject only to the Permitted Exceptions .
If this Agreement is for conveyance of Seller's vendee's interest in a Real Estate Contract, the Statutory Warranty
Deed shall include a contract vendee's assignment sufficient to convey after acquired title . At C losing, Se ll er and
Buyer shall execute and deliver to Closing Agent CBA Form No. PS-AS Assignment and Assumption Agreement
transferring all leases and Vendor Contracts assumed by Buyer pursuant to Section 5(a) and all intangible
property transferred pursuant to Section 14(b).
18. NOTICES AND COMPUTATION OF TIME. Unless otherwise specified , any notice required or permitted in , or
related to, this Agreement (including revocations of offers and counteroffers) must be in writing. Notices to Seller
must be signed by at least one Buyer and must be delivered to Seller and Listing Broker w ith a courtesy copy to
any other party identified as a recipient of notices in Section 28. A notice to Seller shall be deemed delivered only
when received by Seller, Listing Broker, or the licensed office of Listing Broker. Notices to Buyer must be signed
by at least one Seller and must be delivered to Buyer, with a copy to Se lling Broker and with a courtesy copy to
any other party identified as a recipient of notices in Section 28. A notice to Buyer shall be deemed delivered only
when received by Buyer, Selling Broker, or the licensed office of Selling Broker. Selling Broker and Li sting Broker
have no responsibility to advise of receipt of a notice beyond either phoning the represented party or causi ng a
copy of the notice to be delive red to the party's address provided in this Agreement. Buyer and Seller shall ke ep
Selling Broker and Listing Broker advised of their whereabouts in order to receive prompt notification of receipt of
a notice. If any party is not represented by a licensee, then notices must be delivered to and shall be effective
when received by that party at the address, fax number, or email indicated in Section 28.
Unless otherwise specified in this Agreement, any period of time in this Agreement shall mean Pacific Time and
shall begin the day after the event starting the period and shall exp ire at 5 :00 p.m . of the last calendar day of the
specified period of time, unless the last day is a Saturday, Sunday or legal holiday as defined in RCW 1.16.050, in
which case the specified period of time shall expire on the next day that is not a Saturday, Sunday or le gal
holiday. Any specified period of f ive (5) days or less shall not include Saturdays, Sundays or legal holidays.
Notwithstanding the foregoing, references to specific dates or times or number of hours shall mean those dates,
times or number of hours; provided, however, that if the Closing Date falls on a Saturday, Sunday, or legal holiday
as de fined in RCW 1.16.050, or a date when the county record ing office is closed , then the Closing Date sh all be
the next regu lar business day.
19. AGENCY DISCLOSURE. At the signing of this Agreement,
Selling 8FekeF ~
represented itself
and the Listing Broker Kirt R. Shaffer -Tippett Company of Wash ington. LLC
repres ented Selle r.
Selling Firm , Selling Firm's Designated Broker, Selling Broke r's Branch Manager (if any) and Selling Broker's
Managing Broker (if any) represent the same party that Sell ing Broker re presents. Li sting Firm, Li sting Firm 's
IN ITIALS: Buyer~Date <:?:f I ,0{11 11 / Seller ('h:{/ Date tf/7: "b 7
Buyer Date Seller Date ____ _
Page 79 of 95
TIPP~!.T
.; .. il..t..-·r~h~ .. ~ . '
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Su ite F
Pasco , WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
e> Commercial Brokers cor"
Association 2011
AU RIGHT S RESERVED
CBA Form PS-1A
P<.fl:hase & Sale Agr_,ent
Rev. 1120 11
Page 8 of 13
Designated Broker, Listing Broker's Branch Manager (if any), and Listing Broker's Managing Broker (if any)
represent the same party that the Listing Broker represents. If Selling Broker and Listing Broker are different
persons affil iated with the same Firm , then both Buyer and Seller confirm their consent to the Brokers' Designated
Broker, Branch Manager (if any), and Managing Broker (if any) representing both parties as a dual agent. If
Selling Broker and Listing Broker are the same person representing both parties, then both Buyer and Seller
confirm their consent to that person and his/her Designated Broker, Branch Manager (if any), and Managing
Broker (if any) representing both parties as dual agents. All parties acknowledge receipt of the pamphlet entitled
''The Law of Real Estate Agency."
20. ASSIGNMENT. Buyer [gl may D may not (may not, if not completed) assign this Agreement , or Buyer's
rights hereunder, without Seller's p rior written consent, unless provided otherwise herein. If the "may not" option
is selected and the words "and/or assigns" or simila r words are used to identify the Buyer, then this Agreement
may be assigned with notice to Seller but without Seller's consent only to an entity which is controlled by or under
common control with the Buyer identified in this Agreement. Any other assignment requires Seller's consent. The
party identified as the initial Buyer shall remain responsible for those obligations of Buyer stated in this Agreement
notwithstanding any assignment and, if this Agreement provides for Seller to finance a portion of the purchase
price, then the party identified as the initial Buyer shall guarantee payment of the Seller financing .
21. DEFAULT AND ATTORNEY'S FEE.
a. Buyer's default. In the event Buyer fails , without legal excuse, to complete the purchase of the Property,
then (check one):
[gl S ell er may terminate this Agreement and keep the earnest money as liquidated damages as the sole and
e xclusive remedy available to Seller for such fa ilure ; or
D Seller may, at. its option, (a) terminate this Agreement and keep as liquidated damages the earnest money as
the sole and exclusive rem edy available to Seller for such fa ilure, (b) bring su it against Buyer for Seller's actual
da mages, (c) bring suit to specifically enforce this Agreement and recover any incidental damage s, or (d) pursue
any oth er rights or remedies available at law or equity.
b. Seller's default. In the event Seller fails, without legal excuse, to complete the sale of the Property , then
(check one):
~ As Buyer's sole remedy, Buyer may either (a) terminate th is Agreement and recover all earnest money or
fees paid by Buyer whethe r or not the same are identified as refundable or applicable to the purchase price; or (b)
bring suit to specifically enforce this Agree ment and recover Incidental damages, provided, however, Buyer must
fil e suit within sixty (60) days from the scheduled date of closing or from th e date Seller has informed Buyer in
w riting that Seller w ill not proc eed with closing, whichever is earlier; or
D Buyer may , at its option, (a) bring suit against Seller for Buyer's actual damages, (b) bring suit to specifically
enforce this Agreement and recover any inc idental damages, or (c) pursue any other rights or remedies available
at law or equity.
Neither Buy er nor S eller may recover consequentia l dam ages such as lost profits . If Buyer or Seller institutes suit
against the other concern ing this Agreement, the prevailing party is entitled to reasonable attorneys' fees and
e xpenses. In the event of trial, the amqunt of the attorney's fee shall be fixed by the court. The venue of any su it
shall be th e c ounty in which the Property is located, and this Agreement shall be governed by th e laws of the state
where th e Property is located.
22. MISCELLANEOUS PROVISIONS.
INITIALS: Buyer __ ~"'-=''?""-+----Date _q......:.....:../.;_;;t.___;;~;,;{.;_\_]L.__Seller __ _,__;__ ___ Date 'if-).. 1 /z, 1
Buyer _______ Date ________ Seller _______ Date -----
Page 80 of 95
• TIPP~J.'f
~Atr..-,.,.,s,;;:~·· .... -. -·. ~-.. ~
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Su ite F
Pasco, WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
c Commercial Broken ~
Assoclallon 2011
ALL RIGHTS RESERVED
CBA Form PS-1A
P.n:ha sa & Sal e Agreement
R ev.1/2011
Page9 ot 13
a. Complete Agreement. This Agreement and any addenda and exhibits thereto state the entire understanding
of Buyer and Seller regarding the sale of the Property. There are no verbal or other written agreements which
modify or affect the Agreement.
b. Counterpart Signatures. This Ag reement may be signed In counterpart, each signed counterpart shall be
deemed an original, and al l counterparts together shall constitute one and the same agreement
c. Electronic Delivery. Electronic delivery of documents (e.g ., transm ission by facsimile or email) including
signed offers o r counteroffers and notices shall be legally sufficient to bind the party the same as delivery of an
original . At the request of either party, or the Closing Agent, the parties will replace e lectronically delivered offers
or counteroffers with original documents.
d. Section 1031 Like-Kind Exchange. If either Buyer or Seller intends for this transaction to be a part of a
Section 1031 like-kind exchange, then the other party agrees to cooperate in the completion of the like-kind
exchange so long as the cooperating party incurs no additional liability in doing so , and so long as any expenses
(including attorneys fees and costs) incurred by the cooperating party that are related only to the exchange a re
paid or reimbursed to the cooperating party at or prior to Closing. Notwithstanding Section 20 above, any party
completing a Section 1031 like-kind exchange may assign this Agreement to its qualified intermediary or any
entity set up for the purposes of completing a reverse exchange.
23. ACCEPTANCE; COUNTEROFFERS. Seller has until midnight of September 26, 201Z (if not filled in, the third
business day) following the day Buyer delivers the offe r to accept this offe r, unless sooner withdrawn. If th is offe r
is not timely accepted, it shall lapse and the earnest money shall be refunded to Buyer. If either party makes a
futu re counteroffer, the other party shall have until 5:00p.m. on the fifth (5 1h ) business day (if not filled in , the
second business day) following receipt to accept the counteroffer, unless sooner withdrawn . If the counteroffer is
not timely accepted o r countered, this Agreement shall lapse and the earnest money shall be refunded to the
Buyer. No acceptance, offer or counteroffer from the Buyer is effective until a s igned copy is received by the
Seller, the Listing Broker or the licensed office of the Listing Broker. No acceptance, offer or counte roffer f rom the
Seller is effective until a signed copy is received by the Buyer, t he Selling Broker or the licensed office of the
Selling Broker. "Mutual Acceptance" shall occur when the last counteroffer is signed by the offeree, and the fully-
signed counteroffer has been received by the offeror, his or her broker , or the licensed office of the broker. If any
party is not represented by a broker, then notices must be delivered to and shall be effective when received by
that party.
24. INFORMAT10N TRANSFER. In t he event this Agreement is terminated , Buyer agrees to deliver to Seller within
ten (10) days of Seller's written request copies of all materials received from Seller and any non-privileged plans,
studies, reports , inspections, appraisals, surveys, drawings, permits, applications or other development work
product relating to the Property in Buyer's possession or control as of the date this Agreement is terminated.
25. CONFIDENTIALITY. Until and unless closing has been consummated , Buyer and Seller shall follow reasonable
measures to p revent unnecessary disclosure of information obtained in connection w ith the negotiation and
performance of this Agreement. Neither party shall use or knowingly permit the use of any such i nformation in
any manner detrimental to th e other party. ExCEPT AS BUYER MAY BE REQUIRED TO DISCLOSE INFORMA TION
ASSOCIATED WITH THIS PURCHA SE AND SALE AGREEMENT AS REQUIRED BY LAW, INCLUDING THE REQUIREMENTS OF THE
WASHINGTON PUBUC RECORDS A CT.
26. SELLER'S ACCEPTANCE AND BROKERAGE AGRE EMENT. Seller agrees to sell the Property on the term s
and conditions herein, and further agrees to pay a commission in a total amount computed in acc ordance with the
listing or commission agreement. If there is no written listing or commission agreement, Seller agrees to pay a
commission of __ % of the sales price or $ __ . The commission shall be apportio ned betwee n Listing Firm
and Selling Firm as specified in the listing or any co-brokerage agreement. If there is no listing or written c o-
INITI ALS : B uye~~ Date q ( d-01 ( l Sell er ~ Date t\{t:-'1{tJ
Buye r _______ Date ________ .Seller _______ Date -----
Page 81 of 95
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027 , Suite F
Pasco, WA 99302
Phone: (509) 545-3355
Fax : (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
c Commercial Bmkllno cor'
Assodatlon 2011
ALL RIG HTS RESERVED
CBAFonnPS-1A
Purdlase & Sale Agreement
Rev. 1120 11
Page 10of 13
brokerage agreement, then Listing Firm shall pay to Selling Firm a commission of __ o/o of the sa les price or
$ __ . Seller assigns to Listing Firm and Sell ing Firm a portion of the sales proceeds equal to the commission. If
the earnest money is retained as liquidated damages, any costs advanced or committed by Listing Firm or Selling
Firm for Buyer or Seller shall be reimbursed or paid therefrom, and the balance shall be paid one-half to Seller
and one-half to Listing Firm and Selling Firm according to the listing agreement and any co-brokerage agreement.
i n any action by Listing Firm or Selling Firm to enforce th is Section , the prevail ing party is en titled to reasonable
attorneys ' fees and expenses. Neither Listing Rrm nor Selling Firm are receiving compensation from more than
one party to this transaction unless disclosed on an attached addendum, In wh ich case Buyer and Seller consent
to such compensation . The Property described in attached Exhibit A is commercial real estate. Notwithstanding
Section 25 above, the pages containing this Section, the parties' signatures and an attachment describing the
Property may be recorded .
27. LISTING BROKER AND SELLING BROKER DISCLOSURE. EXCEPT AS OTHERWISE DISCLOSED IN
WRITING TO BUYER OR SELLER, THE SELLING BROKER, LISTING BROKER, AND FIRMS HAVE NOT
MADE ANY REPRESENTATIONS OR WARRANTIES OR CONDUCTED ANY INDEPENDENT INVESTIGATION
CONCERNING THE LEGAL EFFECT OF THIS AGREEMENT, BUYER'S OR SELLER'S FINANCIAL
STRENGTH , BOOKS , RECORDS, REPORTS, STUDIES , OR OPERATING STATEMENTS; THE CONDITION
OF THE PROPERTY OR ITS IMPROVEMENTS; THE FITNESS OF THE PROPERTY FOR BUYER'S
INTENDED USE; OR OTHER MAITERS RELATING TO THE PROPERTY, INCLUDING WITHOUT
LIMITATION, THE PROPERTY'S ZONING , BOUNDARIES, AREA, COMPLIANCE WITH APPLICABLE LAWS
(INCLUDING LAWS REGARDING ACCESSIBILITY FOR DISABLED PERSONS), OR HAZARDOUS OR TOXIC
MATERIALS INCLUDING MOLD OR OTHER ALLERGENS . SELLER AND BU YER ARE EACH ADVISED TO
ENGAGE QUALIFIED EXPERTS TO ASSIST WITH THESE DUE DILIGENCE AND FEASIBILITY MATIERS,
AND ARE FURTHER ADVISED TO SEEK INDEPENDENT LEGAL AND TAX ADVICE RELATED TO THIS
AGREEMENT.
INITIALS: Buyer ~ Date c!:J {::2v f II Date 7/z1/ t{
Buyer _______ Date _______ .Seller _______ Date ____ _
Page 82 of 95
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Suite F
Pasco, WA 99302
e Commercial Btokera ~
Association 201 1
All RIGHTS RESERVED
C8A Form PS-1A
Purchase & Sale Agreement
Rev. 112011
P-12of13
Phone: (509) 545-3355
Fax : (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
Courtesy Copy of Notices to Buyer to: Courtesy Copy of Notices to Seller to:
Name: Name:
Address: Address:
Business Phone: Business Phone:
Fax: Fax:
Mobile Phone: Mobile Phone:
Email: Email:
IN WITNESS WHEREOF, the parties have signed this Agreement intending to be bound.
Buyer CITY OF PASCO, A WASHINGTON
MUNICIPAL CORPORATION
Printed name and type of entity
/1 \ /-f~ .... ;f
Buyer __ 'fA.-:!l::::::bc::..::,;:;.---::::::~..:..·<'~-hr~....,.,/.-7 =-===/~~/~.:AA..::A./L:....:=:_:::=-----
1S ignatu[e-=and title
Date signed __ ~9_-_Z6 __ ·_1_....1 ______ _
Seller PASCO SCHOOL DISTRICT NO. 1 ----
Printed name and type of entity
Buyer
Printed name and type of entity
Buyer __________ ~--------~-------------
Signature and title
Date signed -----------------------------
Seller
Printed name and type of entity
I)/ ~ )\ r Se!ler --::-=--------=-:---------:-:------------
Seller ~1(./tf ( P.:.:Pt.AJ )ffa t; /J'>'edvr rrua{J ~v·t:U Signature and title
Sign(atufe"and title
Date signed -----------------------------
Date signed j ( ~1jr1
INITIALS: Date _q~(,_>__:_i4"_1_t_l...:..__ Seller __ ___:.9..!._Y...:...7 __;L_="--Date
Buyer _______ Date-------Seller ________ Date ---------
Page 83 of 95
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027, Suite F
Pasco , WA 99302
Phone: (509) 545-3355
Fax : (509) 545-1689
" Comm ercial BrokOt$
Associ a~on 201 1
ALL RI GHTS RESERVED
CBA Form PS-1A
Purchase & Sale Agreemenl
Rev. 112011
Page 1 1 o1 13
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
28. IDENTIFICATION OF THE PARTIES. The following is the contact information for the parties Involved in this
Agreement:
Contact: Citv of Pasco Contact: Pasco School Dist rict No. 1 ____ _
Address: PO Box 293!525 North 3rc1 Avenue) Pasco WA Address: 1215 West Lewis Street. Pasco WA 99301
99301 Business Phone:
Business Phone: 509-545-3404 Mobile Phone:
Mobile Phone:
Fax: 509-545-3403 -----------
Email:
Selling Firm
Name:
Assumed Name (if applicable) : _____ _
Selling Broker: ___________ _
Address:
Business Phone:
Mobile Phone:
Email:
Fax:
CBA Office No.:
Licensed Office of the Selling Broker
Address:
Business Phone:--------~--
Email:
Fax:
CBA Office No.:
INITIALSo _, ~D•Ie 1/ ;;)_(., /J/
Fax:
Email:
Listing Firm
Name : Tippett Company of Wash ington. LLC __ _
Assumed Name (If applicable) : N/A ____ _
Listing Broker: Kirt A. Shaffer ______ _
Address: 2815 St. Andrews Loop. Suite F. Pasco WA
99301
Business Phone: ~50~9!...·5~4:!.>5~-3~3~5~5. ______ _
Mobile Phone: 509-521-9183 ______ _
Email: kirt@tippettcompany .com ______ _
Fax: 509-545-3355
CBA Office No.:
Licensed Office of the Listing Broker
Address:
Business Phone:
Email:
Fax:
CBA Office No.:
Seller ~ Date
Buyer _______ Date _______ Seller _______ Dale ____ _
Page 84 of 95
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027. Su ite F
Pasco , WA 99302
Phone: (509) 545-3355
Fax: (509) 545-1689
COMMERCIAL & INVESTMENT REAL ESTATE
PURCHASE & SALE AGREEMENT
(CONTINUED)
EXHIBIT A *
[Legal Description]
e Commerelal Brokers ~
Assodalion 201 1
All R IGHTS RESERv.ED
CBA Form PS-1A
Pureh ase & Sale Agreement
Rev. 112011
Page 13of 13
Franklin County Tax Parcel No. 119-111-050:
The Northwest quarter of the Southwest quarter of the Southwest
quarter of Section 23, Township 9 North, Range 29 East, W.M. Franklin
County, Washington EXCEPT the North 150 feet of the West 150 feet
thereof.
Franklin County Tax Parcel No. 119-111 -069:
The Northeast quarter of the Southwest quarter of the Southwest
quarter of Section 23, Township 9 North, Range 29 East, W.M. Franklin
County, Washington EXCEPT the South 132 feet thereof.
Franklin County Tax Parcel No. 119-112-031:
*
The Southeast quarter of the Southwest quarter of the Southwest
quarter of Section 23, Township 9 North, Range 29 East, W.M. Franklin
County, Washington EXCEPT the South 344 feet and except County
Roads.
To ensure accuracy in the legal description, consider substituting the legal description contained in the preliminary
commitment for title insurance or a copy of the Property's last vesting deed for this page. Do not neglect to label
the substitution "E x hibit A ." You should avoid transcrib ing the legal description because any error in transc ription
may render the legal description inaccurate and this Agreement unenforceable.
INITIALS: Selle r ---1-ft--Date 1{1 --1 /r1
Buyer _______ Date _______ Selle r _______ Date ____ _
Page 85 of 95
• TIPP~JJ
. i;~i;i.,k-~i.w· .
Tippett Company LLC
2815 Saint Andrews Lp I PO Box 3027 , Suite F
Pasco, WA 99302
Phone : (509) 545-3355
Fax: (509) 545-1689
ADDENDUNVAMENDMENTTO
PURCHASE AND SALE AGREEMENT
CBA Text Discla imer: Text deleted by licensee Indicated by strike .
New text inserted by Hcensee indicated by small capital letters.
C Commercial Brokers ,...... • /
Association 2011 lJ:SI{
ALL RIGHTS
RESERVED
CBAForm PSA
Addendum/Amendm ent
to PSA
Rev. 1/2011
Page 1 of 1
The following is part of the Purchase and Sale Agreement dated September 22, 2017 (the "Agreement") between City
of Pasco. a Washington Municipal Corooration ("Buyer") and Pasco School District No. 1 ("Seller") regarding the sale
of the property k nown as Franklin County Tax Parcel Nos. 119-111-050. 119-111-069 and 119-112-031, consisting of
+/-20.32 acres. Pasco, WA 99301 (the "Property").
IT IS AGREED BETWEEN THE BUYER AND SELLER AS FOLLOWS:
ADDENDUM NO .1
1. 60 days from date of Mutual Acceptance of this Agreement. Seller shall . at Seller's expense. have the Property
surveyed and the boundaries staked by a survey company qualified to perform such services.
2. Prior to Closing, Seller shall provide a copy of a survey of Subject Property to Buyer. If such survey indicates that
subject property is more or less than 20.32 acres. the amount of land more or less than 20.32 acres shall be multipli ed
by $43.500/acre and the purchase price shall be adjusted accordingly.
:::.ER:~th~.:~·~m\: ;~~Sd~ --c:~~=-----Date -...;.,~~~~~7/'--1'-7 __ _
Buyer -------Date ________ Sell er _______ Date _______ _
Page 86 of 95
AGENDA REPORT
FOR: City Council November 14, 2017
TO: Dave Zabell, City Manager
Rick Terway, Interim Public Works Director
Regular Meeting: 11/20/17
FROM: Dan Ford, City Engineer
Public Works
SUBJECT: Bid Award: Oregon Avenue (SR 397) Corridor Improvements, Phase 1, No.
12002
I. REFERENCE(S):
Vicinity Map
Bid Tabulation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to award the Oregon Avenue (SR 397) Corridor Improvements
Phase 1 project to Culbert Construction, Inc. of Pasco, Washington in the amount of
$6,622,707.52 and, further, authorize the City Manager to execute the contract
documents.
III. FISCAL IMPACT:
Transportation Improvement Board (TIB) Grant $4,864,500
Highway Safety Improvement Program Grant $875,900
Surface Transportation Program Grant $903,550
City of Pasco - Arterial and Overlay Funds $1,399,378
Total Project Cost (Past and Future*) $8,043,328
*Previously spent and anticipated costs.
IV. HISTORY AND FACTS BRIEF:
This is a street improvement project of Oregon Avenue (SR 397) from the US12/I-182
Interchange to 'A' Street that focuses on safety enhancements of this route.
Improvements include installation of sidewalks, curb and gutter, paving, storm
drainage, striping, widening, turn lane channelization, and installation of a new traffic
signal at the Idaho intersection. The project also includes an emergency signal at th e
fire station, and illumination along the length of the project.
Page 87 of 95
V. DISCUSSION:
On October 25, 2017, the City received seven (7) bids for construction of the project.
The low bid was from Culbert Construction, Inc. in the amount of $6,622,707.52. The
Engineer's construction estimate was $6,607,066.00.
Constructions costs, plus the cost of design, project management and inspection for the
duration of the total $8,043,328.
This project is included in the City's 2018-2023 Capital Improvement Plan. After
award of the project, the starting date of construction will be coordinated with the
contractor, with the majority of construction completed in 2018.
Staff reviewed the bid submittal and found no exceptions or irregularities and,
therefore, recommends award of the contract to Culbert Construction, Inc. of Pasco,
Washington.
Page 88 of 95
OREGON AVE (SR 397) CORRIDOR IMPROVEMENTS - PHASE I
VICINITY MAP
References
Project Phase 1
Project Phase 2 (Future)
Proposed new Traffic Signal
Upgrade to existing Traffic Signal
Port of Pasco
Schools
EMS/Fire Station
Commercial/Industrial Area
Lewis St.
Overpass
N
“A” Street
Lewis Street
``
Broadway Street
Page 89 of 95
Page 90 of 95
FILE: BID DATE: OCTOBER 25, 2017 Oregon Ave (SR397) Bid Summary.pub SHEET of 2 6 Contract No.: CP5-ST-3A-12-57 Fed. Aid No.: STPUS-0397(008) Continued from Previous Sheet CITY OF PASCO Oregon Ave (SR 397) Corridor Improvements, Phase 1 Project No. 12002 BID SUMMARY Oregon Ave (SR 397) Improvements, Phase I Selland Construction, Inc. Inland Asphalt Co. Tapani, Inc. Granite Construction Co. PROJECT NUMBER: 12002, CP5-ST-3A-12-57 Wenatchee, WA Richland, WA Battle Ground, WA Pasco, WA Fed. Aid No. : STPUS-0397(008) Item Bid Security Bid Bond Bid Bond Bid Bond Bid Bond No. Description Quantity Unit Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount 1 Mobilization 1 LS 449,209.50 449,209.50 450,000.00 450,000.00 722,000.00 722,000.00 1,221,473.00 1,221,473.00 2 Clearing and Grubbing 6.00 ACRE 5,000.00 30,000.00 2,000.00 12,000.00 8,500.00 51,000.00 17,500.00 105,000.00 3 Removal of Structures and Obstructions 1 LS 213,000.00 213,000.00 425,000.00 425,000.00 350,000.00 350,000.00 100,000.00 100,000.00 4 Roadway Excavation Incl. Haul 8400 CY 50.00 420,000.00 34.00 285,600.00 19.00 159,600.00 80.00 672,000.00 5 Common Borrow Incl. Haul 2700 CY 12.00 32,400.00 12.00 32,400.00 17.00 45,900.00 34.00 91,800.00 6 Modify Catch Basin 1 EACH 1,000.00 1,000.00 1,500.00 1,500.00 1,300.00 1,300.00 1,486.00 1,486.00 7 Catch Basin Type 1 (COP) 79 EACH 1,400.00 110,600.00 715.00 56,485.00 1,500.00 118,500.00 2,935.00 231,865.00 8 Adjust Catch Basin 6 EACH 300.00 1,800.00 270.00 1,620.00 300.00 1,800.00 790.00 4,740.00 9 Catch Basin Type 2 48 In. Diam. 4 EACH 2,500.00 10,000.00 2,268.00 9,072.00 5,000.00 20,000.00 5,164.00 20,656.00 10 48 In. Diam. Storm Drain Manhole 32 EACH 2,500.00 80,000.00 1,944.00 62,208.00 5,000.00 160,000.00 6,800.00 217,600.00 11 Infiltration Trench, Complete 470 LF 300.00 141,000.00 325.00 152,750.00 400.00 188,000.00 710.00 333,700.00 12 Catch Basin Type 1 (WSDOT) 2 EACH 1,400.00 2,800.00 875.00 1,750.00 1,500.00 3,000.00 2,534.00 5,068.00 13 Solid Wall PVC Storm Sewer Pipe 10 In. Diam. 3900 LF 105.00 409,500.00 48.00 187,200.00 73.00 284,700.00 70.00 273,000.00 14 Solid Wall PVC Storm Sewer Pipe 12 In. Diam. 4000 LF 65.00 260,000.00 45.00 180,000.00 65.00 260,000.00 75.00 300,000.00 15 Moving Existing Hydrant 8 EACH 5,400.00 43,200.00 3,900.00 31,200.00 11,000.00 88,000.00 7,140.00 57,120.00 16 Adjust Water Meter Box 26 EACH 300.00 7,800.00 1,050.00 27,300.00 150.00 3,900.00 500.00 13,000.00 17 Relocate Water Meter Box 3 EACH 1,300.00 3,900.00 525.00 1,575.00 400.00 1,200.00 1,400.00 4,200.00 18 Pedestrian Railing 82 LF 200.00 16,400.00 200.00 16,400.00 90.00 7,380.00 250.00 20,500.00 19 Crushed Surfacing Base Course 6000 TON 25.00 150,000.00 38.00 228,000.00 30.00 180,000.00 67.00 402,000.00 20 Crushed Surfacing Top Course 300 TON 45.00 13,500.00 45.00 13,500.00 50.00 15,000.00 122.00 36,600.00 21 HMA CL. 1/2 In. PG 64-28 7800 TON 103.00 803,400.00 105.90 826,020.00 100.00 780,000.00 200.00 1,560,000.00 22 Adjust Valve Box 9 EACH 350.00 3,150.00 1,100.00 9,900.00 75.00 675.00 800.00 7,200.00 23 Silt Fence 1800 LF 4.00 7,200.00 3.00 5,400.00 5.00 9,000.00 7.00 12,600.00 24 ESC Lead 240 DAY 25.00 6,000.00 150.00 36,000.00 47.00 11,280.00 1.00 240.00 25 Topsoil Type A 1340 CY 45.00 60,300.00 28.00 37,520.00 25.00 33,500.00 23.00 30,820.00 26 Stabilized Construction Entrance 216 SY 12.00 2,592.00 60.00 12,960.00 20.00 4,320.00 22.00 4,752.00 27 Inlet Protection 99 EACH 100.00 9,900.00 80.00 7,920.00 45.00 4,455.00 75.00 7,425.00 28 Soil Amendments 340 CY 83.00 28,220.00 85.00 28,900.00 95.00 32,300.00 87.00 29,580.00 29 Dry River Bed Rock 4500 SF 0.95 4,275.00 1.00 4,500.00 1.00 4,500.00 1.00 4,500.00 30 Landscape Boulders 44 EACH 85.00 3,740.00 89.00 3,916.00 100.00 4,400.00 85.00 3,740.00 31 Landscape Repair 1 LS 5,000.00 5,000.00 6,875.00 6,875.00 12,000.00 12,000.00 600.00 600.00 32 Irrigation System 1 LS 235,000.00 235,000.00 240,000.00 240,000.00 175,000.00 175,000.00 280,000.00 280,000.00 33 PSIPE Large Trees 92 EACH 340.00 31,280.00 370.00 34,040.00 275.00 25,300.00 360.00 33,120.00 Page 91 of 95
FILE: BID DATE: OCTOBER 25, 2017 Oregon Ave (SR397) Bid Summary.pub SHEET of 3 6 Contract No.: CP5-ST-3A-12-57 Fed. Aid No.: STPUS-0397(008) Continued from Previous Sheet CITY OF PASCO Oregon Ave (SR 397) Corridor Improvements, Phase 1 Project No. 12002 BID SUMMARY Oregon Ave (SR 397) Improvements, Phase I Engineer's Estimate Culbert Construction, Inc. Total Site Services, LLC Apollo, Inc. PROJECT NUMBER: 12002, CP5-ST-3A-12-57 Pasco, WA Richland, WA Kennewick, WA Fed. Aid No. : STPUS-0397(008) Item Bid Security Bid Bond Bid Bond Bid Bond No. Description Quantity Unit Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount 34 PSIPE Evergreen Trees 9 EACH 350.00 3,150.00 195.75 1,761.75 0.00 2,843.24 286.00 2,574.00 35 PSIPE Shrubs and Groundcover 27800 SF 3.00 83,400.00 0.37 10,286.00 0.00 20,677.40 1.25 34,750.00 36 Seeded lawn Installation 7900 SY 0.90 7,110.00 2.66 21,014.00 0.00 5,660.28 3.00 23,700.00 37 Dual-Faced Cement Conc. Traffic Curb 600 LF 25.00 15,000.00 59.12 35,472.00 0.00 24,117.42 57.00 34,200.00 38 Cement Conc. Type A Curb and Gutter 15710 LF 25.00 392,750.00 22.34 350,961.40 0.00 471,831.94 26.00 408,460.00 39 Extruded Cement Concrete Mow Strip 1200 LF 6.00 7,200.00 10.41 12,492.00 0.00 4,708.36 5.50 6,600.00 40 Cement Conc. Pedestrian Curb 75 LF 20.00 1,500.00 59.44 4,458.00 0.00 1,796.06 69.00 5,175.00 41 10" Cement Conc. Pedestrian Curb 130 LF 30.00 3,900.00 59.44 7,727.20 24.15 3,139.50 70.00 9,100.00 42 Plastic Line 29250 LF 1.30 38,025.00 0.82 23,985.00 0.90 26,325.00 0.90 26,325.00 43 Plastic Wide Lane Line 3950 LF 2.50 9,875.00 2.20 8,690.00 2.45 9,677.50 2.35 9,282.50 44 Plastic Crosswalk Line 4920 SF 6.80 33,456.00 8.46 41,623.20 9.39 46,198.80 9.00 44,280.00 45 Plastic Stop Line 930 LF 7.00 6,510.00 12.81 11,913.30 14.21 13,215.30 13.00 12,090.00 46 Plastic Traffic Arrow 78 EACH 200.00 15,600.00 256.22 19,985.16 284.32 22,176.96 275.00 21,450.00 47 Permanent Signing 1 LS 25,000.00 25,000.00 32,796.15 32,796.15 36,393.18 36,393.18 35,000.00 35,000.00 48 Illumination System, Complete 1 LS 940,000.00 958,000.00 798,445.74 798,445.74 886,618.18 886,618.18 852,000.00 852,000.00 49 Traffic Signal, Complete (Oregon Ave/East 'A' Street) 1 LS 140,000.00 158,000.00 206,867.82 206,867.82 226,495.21 226,495.21 218,000.00 218,000.00 50 Traffic Signal, Complete (Oregon Ave/Lewis St) 1 LS 240,000.00 258,000.00 278,972.19 278,972.19 306,457.90 306,457.90 295,000.00 295,000.00 51 Traffic Signal (Oregon Ave/Broadway St) 1 LS 30,000.00 48,000.00 57,840.08 57,840.08 61,072.31 61,072.31 59,000.00 59,000.00 52 Traffic Signal, Complete (Oregon Ave/Salt Lake St) 1 LS 160,000.00 178,000.00 248,775.14 248,775.14 272,948.90 272,948.90 263,000.00 263,000.00 53 Traffic Signal (Oregon Ave/Idaho St) 1 LS 45,000.00 63,000.00 69,669.24 69,669.24 74,198.88 74,198.88 71,000.00 71,000.00 54 Traffic Signal, Complete (Oregon Ave/Fire Station 81) 1 LS 100000.00 100000.00 119076.64 119076.64 129025.21 129025.21 125000.00 125000.00 55 ITS (Interconnect Conduit) 1 LS 200,000.00 218,000.00 125,824.46 125,824.46 139,624.72 139,624.72 135,000.00 135,000.00 56 Project Temporary Traffic Control 1 LS 85,000.00 85,000.00 211,125.19 211,125.19 324,809.16 324,809.16 400,000.00 400,000.00 57 Roadway Surveying 1 LS 50,000.00 50,000.00 53,276.07 53,276.07 16,490.66 16,490.66 16,000.00 16,000.00 58 Cement Conc. Sidewalk 8200 SY 35.00 287,000.00 54.89 450,098.00 46.49 381,218.00 59.60 488,720.00 59 Cement Conc. Curb Ramp Type Single Direction C 24 EACH 3,000.00 72,000.00 2,038.70 48,928.80 1,707.03 40,968.72 2,500.00 60,000.00 60 Cement Conc. Curb Ramp Type Single Direction B 2 EACH 3,000.00 6,000.00 2,044.87 4,089.74 1,484.96 2,969.92 2,500.00 5,000.00 61 Cement Conc. Curb Ramp Type Parallel A 25 EACH 3,000.00 75,000.00 2,037.84 50,946.00 1,264.50 31,612.50 2,500.00 62,500.00 62 Cement Conc. Curb Ramp Type Perpendicular A 4 EACH 3,000.00 12,000.00 2,044.82 8,179.28 1,468.41 5,873.64 2,500.00 10,000.00 63 Cement Conc. Curb Ramp 4 EACH 3,000.00 12,000.00 2,044.82 8,179.28 2,166.08 8,664.32 2,500.00 10,000.00 64 Cement Conc. Driveway Entrance 4589 SY 70.00 321,230.00 77.24 354,454.36 54.01 247,851.89 74.60 342,339.40 65 Cement Conc. Driveway Entrance Type 4 132 SY 70.00 9,240.00 86.90 11,470.80 55.50 7,326.00 83.50 11,022.00 Page 92 of 95
FILE: BID DATE: OCTOBER 25, 2017 Oregon Ave (SR397) Bid Summary.pub SHEET of 4 6 Contract No.: CP5-ST-3A-12-57 Fed. Aid No.: STPUS-0397(008) Continued from Previous Sheet CITY OF PASCO Oregon Ave (SR 397) Corridor Improvements, Phase 1 Project No. 12002 BID SUMMARY Oregon Ave (SR 397) Improvements, Phase I Selland Construction, Inc. Inland Asphalt Co. Tapani, Inc. Granite Construction Co. PROJECT NUMBER: 12002, CP5-ST-3A-12-57 Wenatchee, WA Richland, WA Battle Ground, WA Pasco, WA Fed. Aid No. : STPUS-0397(008) Item Bid Security Bid Bond Bid Bond Bid Bond Bid Bond No. Description Quantity Unit Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount 34 PSIPE Evergreen Trees 9 EACH 200.00 1,800.00 210.00 1,890.00 250.00 2,250.00 200.00 1,800.00 35 PSIPE Shrubs and Groundcover 27800 SF 0.40 11,120.00 0.40 11,120.00 1.00 27,800.00 0.40 11,120.00 36 Seeded lawn Installation 7900 SY 3.15 24,885.00 3.00 23,700.00 3.00 23,700.00 3.00 23,700.00 37 Dual-Faced Cement Conc. Traffic Curb 600 LF 33.00 19,800.00 33.00 19,800.00 55.00 33,000.00 43.00 25,800.00 38 Cement Conc. Type A Curb and Gutter 15710 LF 20.00 314,200.00 25.00 392,750.00 22.00 345,620.00 31.00 487,010.00 39 Extruded Cement Concrete Mow Strip 1200 LF 10.00 12,000.00 7.50 9,000.00 24.00 28,800.00 9.00 10,800.00 40 Cement Conc. Pedestrian Curb 75 LF 24.00 1,800.00 22.00 1,650.00 65.00 4,875.00 36.00 2,700.00 41 10" Cement Conc. Pedestrian Curb 130 LF 48.00 6,240.00 20.00 2,600.00 25.00 3,250.00 41.00 5,330.00 42 Plastic Line 29250 LF 0.80 23,400.00 0.85 24,862.50 2.00 58,500.00 1.88 54,990.00 43 Plastic Wide Lane Line 3950 LF 2.15 8,492.50 2.25 8,887.50 3.00 11,850.00 2.00 7,900.00 44 Plastic Crosswalk Line 4920 SF 8.25 40,590.00 8.75 43,050.00 5.00 24,600.00 9.10 44,772.00 45 Plastic Stop Line 930 LF 12.50 11,625.00 13.00 12,090.00 13.00 12,090.00 10.00 9,300.00 46 Plastic Traffic Arrow 78 EACH 250.00 19,500.00 275.00 21,450.00 175.00 13,650.00 157.00 12,246.00 47 Permanent Signing 1 LS 32,000.00 32,000.00 35,000.00 35,000.00 25,000.00 25,000.00 29,000.00 29,000.00 48 Illumination System, Complete 1 LS 820,000.00 820,000.00 785,000.00 785,000.00 900,000.00 900,000.00 780,000.00 780,000.00 49 Traffic Signal, Complete (Oregon Ave/East 'A' Street) 1 LS 205,000.00 205,000.00 200,000.00 200,000.00 210,000.00 210,000.00 200,000.00 200,000.00 50 Traffic Signal, Complete (Oregon Ave/Lewis St) 1 LS 270,000.00 270,000.00 275,000.00 275,000.00 300,000.00 300,000.00 270,000.00 270,000.00 51 Traffic Signal (Oregon Ave/Broadway St) 1 LS 55,000.00 55,000.00 60,000.00 60,000.00 75,000.00 75,000.00 54,000.00 54,000.00 52 Traffic Signal, Complete (Oregon Ave/Salt Lake St) 1 LS 250,000.00 250,000.00 245,000.00 245,000.00 275,000.00 275,000.00 240,000.00 240,000.00 53 Traffic Signal (Oregon Ave/Idaho St) 1 LS 70,000.00 70,000.00 68,000.00 68,000.00 125,000.00 125,000.00 66,000.00 66,000.00 54 Traffic Signal, Complete (Oregon Ave/Fire Station 81) 1 LS 115000.00 115000.00 120000.00 120000.00 175000.00 175000.00 114000.00 114000.00 55 ITS (Interconnect Conduit) 1 LS 130,000.00 130,000.00 125,000.00 125,000.00 100,000.00 100,000.00 123,000.00 123,000.00 56 Project Temporary Traffic Control 1 LS 330,000.00 330,000.00 835,000.00 835,000.00 275,000.00 275,000.00 500,000.00 500,000.00 57 Roadway Surveying 1 LS 24,000.00 24,000.00 78,000.00 78,000.00 35,000.00 35,000.00 45,000.00 45,000.00 58 Cement Conc. Sidewalk 8200 SY 55.00 451,000.00 41.00 336,200.00 65.00 533,000.00 52.00 426,400.00 59 Cement Conc. Curb Ramp Type Single Direction C 24 EACH 2,900.00 69,600.00 2,150.00 51,600.00 2,800.00 67,200.00 2,500.00 60,000.00 60 Cement Conc. Curb Ramp Type Single Direction B 2 EACH 1,900.00 3,800.00 2,100.00 4,200.00 3,400.00 6,800.00 2,560.00 5,120.00 61 Cement Conc. Curb Ramp Type Parallel A 25 EACH 2,400.00 60,000.00 2,100.00 52,500.00 2,800.00 70,000.00 2,500.00 62,500.00 62 Cement Conc. Curb Ramp Type Perpendicular A 4 EACH 1,500.00 6,000.00 1,950.00 7,800.00 2,800.00 11,200.00 2,500.00 10,000.00 63 Cement Conc. Curb Ramp 4 EACH 2,600.00 10,400.00 1,500.00 6,000.00 3,500.00 14,000.00 3,000.00 12,000.00 64 Cement Conc. Driveway Entrance 4589 SY 52.00 238,628.00 48.00 220,272.00 84.00 385,476.00 114.00 523,146.00 65 Cement Conc. Driveway Entrance Type 4 132 SY 65.00 8,580.00 62.00 8,184.00 90.00 11,880.00 114.00 15,048.00 Page 93 of 95
FILE: BID DATE: OCTOBER 25, 2017 Oregon Ave (SR397) Bid Summary.pub SHEET of 5 6 Contract No.: CP5-ST-3A-12-57 Fed. Aid No.: STPUS-0397(008) Continued from Previous Sheet CITY OF PASCO Oregon Ave (SR 397) Corridor Improvements, Phase 1 Project No. 12002 BID SUMMARY Oregon Ave (SR 397) Improvements, Phase I Engineer's Estimate Culbert Construction, Inc. Total Site Services, LLC Apollo, Inc. PROJECT NUMBER: 12002, CP5-ST-3A-12-57 Pasco, WA Richland, WA Kennewick, WA Fed. Aid No. : STPUS-0397(008) Item Bid Security Bid Bond Bid Bond Bid Bond No. Description Quantity Unit Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount 66 Chain Link Fence Type 3 3630 LF 20.00 72,600.00 13.27 48,170.10 12.99 47,153.70 12.50 45,375.00 67 Chain Link Fence Type 5 450 LF 22.00 9,900.00 30.75 13,837.50 46.75 21,037.50 33.00 14,850.00 68 Glare Screen 150 LF 22.00 3,300.00 15.37 2,305.50 17.06 2,559.00 17.00 2,550.00 69 Cast-In-Place Gravity Wall 1275 SF 50.00 63,750.00 95.59 121,877.25 41.44 52,836.00 53.00 67,575.00 70 Modular Block Wall 30 SF 100.00 3,000.00 68.06 2,041.80 17.06 511.80 48.00 1,440.00 71 Mailbox Support Type 1 22 EACH 600.00 13,200.00 476.57 10,484.54 528.84 11,634.48 350.00 7,700.00 72 SPCC Plan 1 LS 2,000.00 2,000.00 231.19 231.19 636.88 636.88 1,000.00 1,000.00 73 Record Drawings 1 LS 25,000.00 25,000.00 462.38 462.38 4,549.14 4,549.14 4,400.00 4,400.00 Total: 6,607,066.00 6,622,707.52 6,968,068.59 7,220,930.90 Page 94 of 95
FILE: BID DATE: OCTOBER 25, 2017 Oregon Ave (SR397) Bid Summary.pub SHEET of 6 6 Contract No.: CP5-ST-3A-12-57 Fed. Aid No.: STPUS-0397(008) Continued from Previous Sheet CITY OF PASCO Oregon Ave (SR 397) Corridor Improvements, Phase 1 Project No. 12002 BID SUMMARY Oregon Ave (SR 397) Improvements, Phase I Selland Construction, Inc. Inland Asphalt Co. Tapani, Inc. Granite Construction Co. PROJECT NUMBER: 12002, CP5-ST-3A-12-57 Wenatchee, WA Richland, WA Battle Ground, WA Pasco, WA Fed. Aid No. : STPUS-0397(008) Item Bid Security Bid Bond Bid Bond Bid Bond Bid Bond No. Description Quantity Unit Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount 66 Chain Link Fence Type 3 3630 LF 15.00 54,450.00 60.00 217,800.00 15.00 54,450.00 13.00 47,190.00 67 Chain Link Fence Type 5 450 LF 35.00 15,750.00 71.50 32,175.00 35.00 15,750.00 33.00 14,850.00 68 Glare Screen 150 LF 15.00 2,250.00 70.00 10,500.00 18.00 2,700.00 17.00 2,550.00 69 Cast-In-Place Gravity Wall 1275 SF 40.00 51,000.00 40.00 51,000.00 95.00 121,125.00 28.00 35,700.00 70 Modular Block Wall 30 SF 45.00 1,350.00 22.00 660.00 100.00 3,000.00 20.00 600.00 71 Mailbox Support Type 1 22 EACH 475.00 10,450.00 500.00 11,000.00 500.00 11,000.00 410.00 9,020.00 72 SPCC Plan 1 LS 1,000.00 1,000.00 1,750.00 1,750.00 500.00 500.00 500.00 500.00 73 Record Drawings 1 LS 500.00 500.00 10,000.00 10,000.00 2,000.00 2,000.00 500.00 500.00 Total: 7,377,377.00 7,850,002.00 8,153,076.00 10,429,977.00 Page 95 of 95