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HomeMy WebLinkAbout2018.01.08 Council Workshop PacketWorkshop Meeting AGENDA PASCO CITY COUNCIL 7:00 p.m. January 8, 2018 Page 1. CALL TO ORDER: 2. ROLL CALL: (a) Pledge of Allegiance 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Community & Economic Development Department Presentation Presented by Rick White, Director, Community & Economic Development (b) Fire Department Presentation Presented by Chief Bob Gear, Fire Department 3 - 5 (c) City Council Representation on Boards and Committees 6 - 8 (d) Water Rights and Private Property Development 9 - 29 (e) COPS Hiring Program Award 30 - 48 (f) CDBG Program Section 108 Guaranteed Loan Program (MF# BGAP 2017-007) 49 - 58 (g) Development Agreements 59 - 74 (h) Oregon Ave Corridor, No. 12002 - Supplement No. 7 with CH2M 5. MISCELLANEOUS COUNCIL DISCUSSION: 6. EXECUTIVE SESSION: 7. ADJOURNMENT. Page 1 of 74 Workshop Meeting January 8, 2018 REMINDERS: 1. 6:00 p.m., Monday, January 8, Conference Room #1 - Old Fire Pension Board Meeting. (COUNCILMEMBER SAUL MARTINEZ) 2. 7:00 p.m., Thursday, January 11, Transit Facility - Ben-Franklin Transit Board Meeting. (COUNCILMEMBER MATT WATKINS) (Subject to change depending upon Board & Committee assignments) 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 2 of 74 AGENDA REPORT FOR: City Council January 2, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 1/8/18 FROM: Stan Strebel, Deputy City Manager Executive SUBJECT: City Council Representation on Boards and Committees I. REFERENCE(S): Boards and Committees for City Council Appointments II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: City Council representation is required on a number of municipal and regional boards and committees. The practice of the City Council has been to make Council appointments to the various boards and committees on a biennial basis; thus, appointments generally are for a two-year period. Changes to these appointments, if necessary, can be made at any time by action of the Mayor and City Council. V. DISCUSSION: Following discussion on proposed board and committee assignments at the January 8 workshop meeting, a resolution and final assignment list will be presented for approval at the January 16 business meeting. Page 3 of 74 CITY COUNCIL BOARD AND COMMITTEE ASSIGNMENTS CALENDAR YEARS – 2018-2019 Mayoral Appointments to Board and Committee Membership BOARD/COMMITTEE DAY TIME LOCATION REPRESENTATIVE ALTERNATE Emergency Medical Services 1st Monday, Bi-Monthly 1:30 pm TRIOS Parks & Recreation Advisory Council * 1st Thursday 5:30 pm Parks & Rec. Classroom Old Fire Pension Board 2nd Monday, Quarterly 6:00 pm Conference Room #1 Mayor BFCG Tri-Mats Policy Advisory Committee 2nd Thursday 7:00 am Varies Ben-Franklin Transit Board 2nd Thursday 7:00 pm Ben-Franklin Transit Reserve Officers Board 3rd Monday, as needed 5:30 pm Conference Room #1 Mayor & Mayor Pro-Tem LEOFF Disability Board 3rd Monday 6:00 pm Conference Room #1 Mayor & Mayor Pro-Tem Good Roads & Transportation Association * 3rd Wednesday, Bi-Monthly 5:30 pm Varies Manhattan Project Historical Park 3rd Thursday 4:00 pm 7130 W. Grandridge FC Emergency Management Council 3rd Thursday, Quarterly 3:30 pm EMS Office Benton Franklin Council of Governments 3rd Friday 11:30 am Varies Hanford Area Economic Investment Fund 4th Monday 4:00 pm Ben-Franklin Transit TRAC Advisory Board * 4th Tuesday, Quarterly 5:00 pm TRAC Facility Visit Tri-Cities Board 4th Wednesday 7:30 am 7130 W. Grandridge TRIDEC Board of Directors 4th Thursday 4:00 pm 7130 W. Grandridge Hanford Communities Governing Board (and ECA) 4th Friday, Quarterly 7:30 am Richland Council Chambers Tri-Cities Regional PFD Board As called Varies Matt Watkins (10/19); Saul Martinez (10/20); ___________ (10/18) FC Solid Waste Advisory Committee As called FC Public Works Greater Columbia Accountable Community of Health (ACH) Board of Directors * 1, 2 3rd Thursday 12:00pm CBC Tri-Cities Public Market *1 Franklin County Law & Justice Council * As called Franklin County Courthouse Local Housing Trust Fund Oversight Committee * As called 710 W. Court Street Page 4 of 74 Revised 01/03/18 *Voluntary (does not require elected official as representative) 1 New Board/Committee added to list 2 The state and counties generally are responsible for community health by statute and practice. Cities receive no direct funding nor required to provide these services. Approved ___________ Page 5 of 74 AGENDA REPORT FOR: City Council January 4, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 1/8/18 FROM: Rick Terway, Public Works Director Public Works SUBJECT: Water Rights and Private Property Development I. REFERENCE(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Background In the early 2000’s the City was involved in acquiring the Quad City water right with West Richland, Richland and Kennewick. For Pasco, a major impetus behind this effort was that the City was beginning to experience the rapid residential and commercial growth on the west side of town that continues to this day. At the time the Department of Ecology (Ecology) was concerned that even with the increase in water rights the City could realize from the Quad City water right, Pasco had limited water rights to meet the rapidly growing demand for potable and irrigation water. Ecology made this concern a part of the Quad City water right litigation. In a nod to Ecology’s concern, the city adopted ordinances to assure that water rights of developing properties would be transferred to the City at the time of development. They can be found in the Pasco Municipal Code Title 3, Title 13 and Title 26. Page 6 of 74 V. DISCUSSION: Conditions have changed and the water rights ordinances approved in the 2000’s have become inadequate for the conditions of today, specifically Title 3.07 City Fee Summary. Currently, a property owner developing property utilizing city water, within or outside the city, is required to assign to the water right associated with the property to the city if one exists. In cases where no water exists the property owner is required to pay a water right acquisition fee of $1,725 an acre-foot. An acre- foot of water currently can go for anywhere from $1,750 per acre-foot to $5,000 per acre-foot. It is calculated a 10,000 square foot residential lot with potable and irrigation water services will consume approximately 20.52 ac-feet of water in 20 years. The cost to the city to purchase a water right at $1,725 per acre-foot to serve this property for 20 years is $36,225. This makes the original acquisition fee of $1,725 inadequate to meet the city’s future needs in purchasing water rights. The current requirements, while in theory could work, in actuality has in many cases resulted in the developer paying a relatively modest fee to the city with the burden of acquiring sufficient water rights to account for growth shifted to the city at the expense of the water ratepayers. Staff is suggesting that development requirements be made such that the developer bring sufficient water rights to the city for the property they wish to develop or in the alternative remit what fees and charges will be required to cover current and future cost to obtain the amount of water needed to cover both potable and irrigation water associated with the development. Conclusion The current water right fees in Title 3.07 do not reflect current financial impacts to the city when purchasing water rights to support residential growth. Industrial growth is not mentioned in the water rights fees resulting in further impacts to the city. Staff suggests the following to begin discussion on the cost of water to the city. 1) A requirement that new development (residential, commercial or industrial) supply or transfer to the city a water right to the city sufficient to meet the developments annual water needs (potable and irrigation or potable only) a t the time of development. 2) In a case where no water rights exist for a property, require a payment to the city equal to the annual water needs at the current market rate plus the administrative costs of acquisition. 3) Negotiate and purchase a water right from the Bureau of Reclamation sufficient to meet the needs of the development. Since this will be an annual Page 7 of 74 charge to the city by the Bureau of Reclamation, the city will pass that charge onto those within the development in the form of a surcharge to their monthly bill. The surcharge will be calculated based on residential use, commercial use or industrial use. 4) Negotiate and purchase a water right from Ecology sufficient to meet the needs of the development. Since this will be an annual charge to the city by Ecology, the city will pass that charge onto those within the development in the form of a surcharge to their monthly bill. The surcharge will be calculated based on residential use, commercial use or industrial use. Staff requests Council direction/discussion relating to development -related water rights and long-term action through the Bureau of Reclamation, Ecology or both. Page 8 of 74 AGENDA REPORT FOR: City Council January 5, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 1/8/18 FROM: Bob Metzger, Police Chief Police Department SUBJECT: COPS Hiring Program Award I. REFERENCE(S): 2016-2017 City Council Goals for Public Safety COPS Hiring Program Award Letter II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Federal Grant - $500,000 City Cost Share (General Fund) - $781,192 IV. HISTORY AND FACTS BRIEF: In July 2017, the Police Department requested funding from the US Department of Justice (DOJ) Community Oriented Police Services (COPS) for an additional four officers. The number of officers requested was based on a recommendation from COPS. In November 2017, the Department was notified that the grant for three years had been awarded for the four officers requested. Staff is requesting Council authorize the Department to accept this grant. V. DISCUSSION: Over the past 30 years the City has experienced significant growth. This has made it difficult for the Police Department to keep up with the staffing needed to address this increase. Even so, during this time the Department has been able to work with the community and reduce crime by over 80%. Page 9 of 74 The need to maintain the safety and security of the City is a concern that the Department spent time reviewing. In October 2015, a Strategic Plan was presented to Council. In part, this plan showed the need to review and increase staffing in the Police Department. Based on this plan, the City Manager authorized, and Council approved, additional staffing. These new positions included one additional Street Crimes Unit Detective, two additional general case Detectives, and two additional Area Resource Officers. As the population of the City has continued to increase, the need for additional staffing became more apparent. Budget constraints made adding these positions difficult without additional revenue. One source that was looked into was a grant from the COPS office. These are very competitive grants and not everyone that applies is successful. It was determined that staff should complete an application and see if funding was available from this source. As part of the grant requirements, the Department had to show a need for additional staffing. One area that was reviewed was the crime rate, yet the rate in Pasco was too low and, therefore, the City was not eligible on this basis. However, an issue for the Department is the large number of homeless persons that come into the City and create police service calls, especially in the downtown area. After reviewing the grant requirements, it was determined that this would be the focus of the grant application and the Department was successful in their request. Due to the large and sustained impact these positions will have on the General Fund, Staff is reviewing strategies to best maximize the value of this grant to the City. While such analysis is occurring, unless there is concern from the Council, Staff is intending to accept this grant award as the first step forward. Accepting the grant does not obligate the City to utilize the grant or hire the positions, it does however keep the City eligible to receive the grant. The grant is flexible in that the City may also mod ify the grant to fewer positions if after further analysis the fiscal obligations of the full grant prove to more than is affordable. Future Council Approval will be required to amend the budget to add any new staff funded through this grant, and will be dependent on the outcome of the staff analysis currently underway. Under the best of conditions the City will not be in a position to hire additional staff through this grant for 4-6 months (recruitment and civil service testing), at which point additional financial information for 2018 will be available. Page 10 of 74 November 1, 2017   Chief of Police Robert Metzger Municipal Manager Dave Zabell   Pasco Police Department 525 North 3rd Avenue P.O. Box 293 Pasco, WA  99301 ORI WA01102     Re: COPS Hiring Program award number 2017UMWX0103     Dear Chief of Police Metzger and Municipal Manager Zabell:   Congratulations on your agency's award for 4 officer position(s) and $500,000.00 in federal funds over a three-year award period under the 2017 COPS Hiring Program (CHP). The local cash match required for this award will be $781,192.00. Your agency may use CHP award funding to (1) hire new officers, (2) rehire officers who have been laid off, or (3) are scheduled to be laid off on a specific future date, as a result of local budget reductions, on or after the official award start date. Please note that any changes to the awarded hiring categories require an official review and approval by the COPS Office.   A list of conditions that apply to your award is included on your Award Document and Award Document Supplement, if applicable. A limited number of agencies may be subject to an Additional Award Notification as a result of an ongoing federal civil rights investigation, other award review, or audit of your agency by the Department of Justice. If applicable to your agency, the Additional Award Notification is included at the end of this letter and is incorporated by reference as part of this letter. In addition, a limited number of agencies may be subject to Special Conditions as a result of high risk designation or other unique circumstances. If applicable to your agency, these Special Conditions will be found in an Award Document Supplement in your award package. You should read and familiarize yourself with these conditions. To officially accept your award, the Award Document (including the conditions and special conditions, if applicable) must be signed electronically via the Account Access link on the COPS Office website at www.cops.usdoj.gov  within 90 days from the date of this letter.   The official start date of your award is 11/01/2017. Therefore, you can be reimbursed for allowable and approved expenditures made on or after this date. Please carefully review the Financial Clearance Memorandum (FCM) included in your award package to determine your approved budget, as some of your requested items may not have been approved by the COPS Office during the budget review Page 11 of 74 process and award funds may only be used for approved items. The FCM will specify the final award amount and will also identify any disallowed costs.   Supplemental online award information for 2017 COPS CHP recipients can be found on the CHP Program page at https://www.cops.usdoj.gov/default.asp?Item=2367. We strongly encourage you to visit this site immediately to access a variety of important and helpful documents that will assist you with the implementation of your award including the 2017 CHP Award Owner’s Manual, which specifies the programmatic and financial terms, conditions, and requirements of your award. In addition, the above website link includes the forms and instructions necessary to begin drawing down funds for your award. Please also ensure that you print out a copy of your application and maintain it with your award file records.     The FBI is retiring the current Summary Reporting System (SRS) and will transition to an all-National Incident-Based Reporting System (NIBRS) data collection system within the next 5 years. The transition to NIBRS will provide a more complete and accurate picture of crime at the national, state, and local level. Beginning in 2021, the FBI will no longer collect summary crime data and will only accept data in the NIBRS format. Consequently, COPS Office awards will be based on submitted NIBRS data. Transitioning all law enforcement agencies to NIBRS is the first step in gathering more comprehensive crime data. The COPS Office encourages its award recipients to submit NIBRS data to the FBI Criminal Justice Information Services Division in a timely manner, thereby ensuring sufficient and complete crime and arrest data is available for consideration.     Once again, congratulations on your 2017 CHP award. If you have any questions about your award, please do not hesitate to call your Grant Program Specialist through the COPS Office Response Center at 800-421-6770.       Russell Washington,                Date: 11/13/2017 Acting Director    Additional Award Notification   ORI WA01102 - Award 2017UMWX0103 - Award Letter 2017 - CHP - Page 2 of 2 Page 12 of 74 ​Award Document   COPS Hiring Program (CHP) CFDA - 16.710 - Public Safety Partnership and Community Policing Grants Treasury Account Symbol (TAS) 15X0406   Award Number: 2017UMWX0103 ORI Number: WA01102     OJP Vendor Number: 916001264     DUNS Number: 009974598 Applicant Organization's Legal Name: Pasco Police Department   Law Enforcement Executive / Agency Executive: Chief of Police Robert Metzger Government Executive / Financial Official: Municipal Manager Dave Zabell   Award Start Date: 11/01/2017      Award End Date: 10/31/2020      Award Amount: $500,000.00   Full-Time Officers Funded: 4   New Hires:  4     Rehires - Previously Laid Off: 0     Rehires - Scheduled for Lay-Off: 0 The FY 2017 COPS Hiring Program (CHP) award provides funding to law enforcement agencies to hire and/or rehire career law enforcement officers in an effort to increase their community policing capacity and crime prevention efforts. CHP awards provide up to 75 percent of the approved entry-level salaries and fringe benefits of full-time officers for a 36-month award period, with a minimum 25 percent local cash match requirement and a maximum federal share of $125,000 per officer position.   The Financial Clearance Memorandum (FCM), included in your award package, is incorporated by reference into this Award Document and shall become part of this Award Document. By signing this Award Document, the recipient agrees to abide by all FY 2017 COPS Hiring Program Award Terms and Conditions, the approved budget in the FCM and, if applicable, the Special Award Conditions and/or High Risk Conditions in the Award Document Supplement.   Russell Washington                                                                   Date: 11/13/2017 Acting Director   (Signature Pending)(Date Pending) Signature of the Program Official with the Authority to Accept this Grant Award Date   (Signature Pending)(Date Pending) Signature of the Financial Official with the Authority to Accept this Grant Award Date   False statements or claims made in connection with COPS Office awards may result in fines, imprisonment, debarment from participating in federal awards or contracts, and/or any remedy available by law to the Federal Government. Page 13 of 74 U.S. Department of Justice Office of Community Oriented Policing Services 2017 COPS Hiring Program Award Terms and Conditions   By signing the Award Document to accept this COPS Hiring Program (CHP) award, your agency agrees to abide by the following award terms and conditions:   1. Award Owner’s Manual. The recipient agrees to comply with the terms and conditions in the applicable COPS Office Program Award Owner's Manual; COPS Office statute (42 U.S.C. §3796dd, et seq.); the requirements of 2 C.F.R. Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) as adopted by the U.S. Department of Justice in 2 C.F.R. § 2800.101; 48 C.F.R. Part 31 (FAR Part 31) as applicable (Contract Cost Principles and Procedures); the Cooperative Agreement as applicable; representations made in the application; and all other applicable program requirements, laws, orders, regulations, or circulars.   2. Assurances and Certifications. The recipient acknowledges its agreement to comply with the Assurances and Certifications forms that were signed as part of its application.   3. Allowable Costs. The funding under this project is for the payment of approved full‐time entry‐level salaries and fringe benefits over three years (for a total of 36 months of funding) up to a maximum federal share of $125,000 per officer position for career law enforcement officer positions hired and/or rehired on or after the official award start date. Any salary and fringe benefit costs higher than entry‐level that your agency pays a CHP‐funded officer must be paid with local funds.   Your agency is required to use CHP award funds for the specific hiring categories awarded. Funding under this program may be used for the following categories:   •   Hiring new officers, which includes filling existing officer vacancies that are no longer funded in your      agency’s budget;   •  Rehiring officers laid off by any jurisdiction as a result of state, local, or Bureau of Indian Affairs (BIA)     budget reductions; and/or   •  Rehiring officers who were, at the time of award application, scheduled to be laid off (by your jurisdiction)      on a specific future date as a result of state, local, or BIA budget reductions   If your agency’s local fiscal conditions have changed and your agency needs to change one or more of the funded hiring categories, your agency should request an award modification and receive prior approval before spending CHP funding under the new category.   The Financial Clearance Memorandum (FCM), included in your award package, specifies the amount of CHP funds awarded to your agency. You should carefully review your FCM, which contains the final officer salary and fringe benefit categories and amounts for which your agency was approved. Please note that the salary and fringe benefit costs requested in your CHP application may have been adjusted or removed. Your agency may only be reimbursed for the approved cost categories that are documented within the FCM, up to the amounts specified in the FCM. Your agency may not use CHP funds for any costs that are not identified as allowable in the Financial Clearance Memorandum.   Only actual allowable costs incurred during the award period will be eligible for reimbursement and drawdown. If your agency experiences any cost savings over the course of the award (for example, your award application overestimated the total entry‐level officer salary and fringe benefits package), your agency may not use that excess funding to extend the length of the award beyond 36 months. Any funds remaining after your agency has ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 1 of 12 Page 14 of 74 drawn down for the costs of approved salaries and fringe benefits incurred for each awarded position during the 36‐month funding period will be deobligated during the closeout process and should not be spent by your agency. 4. Supplementing, Not Supplanting. State , local, and tribal government recipients must use CHP funds to supplement, and not supplant, state, local, or Bureau of Indian Affairs (BIA) funds that are already committed or otherwise would have been committed for award purposes (officer hiring) during the award period. In other words, recipients may not use COPS Office funds to supplant (replace) state, local, or BIA funds that would have been dedicated to the COPS Office‐funded item(s) in the absence of the COPS Office award (42 U.S.C. § 3796dd‐ 3(a)).   5. Extensions. Your agency may request an extension of the award period to receive additional time to implement your award program. Such extensions do not provide additional funding. Awards may be extended a maximum of 36 months beyond the initial award expiration date. Any request for an extension beyond 36 months will be evaluated on a case‐by‐case basis. Only those recipients that can provide a reasonable justification for delays will be granted no‐cost extensions. Reasonable justifications may include difficulties in filling COPS Office‐ funded positions, officer turnover, or other circumstances that interrupt the 36 month award funding period. An extension allows your agency to compensate for such delays by providing additional time to complete the full 36 months of funding for each position awarded. Extension requests must be received prior to the end date of the award.   6. Modifications. During the CHP award period, it may become necessary for an agency to modify its CHP award due to changes in an agency’s fiscal or law enforcement situation. Modification requests should be submitted to the COPS Office when an agency determines that it will need to shift officer positions awarded in one hiring category into a different hiring category, reduce the total number of positions awarded, shift funds among benefit categories, and/or reduce the entry‐level salary and fringe benefit amounts. For example, an agency may have been awarded CHP funding for 10 new, additional full‐time sworn officer positions, but due to severe fiscal distress/constraints, the agency determines it is unable to sustain all 10 positions and must reduce its request to five full‐time positions; or an agency may have been awarded CHP funding for two new, additional sworn officer positions, but due to fiscal distress/constraints the agency needs to change the hiring category from the new hire category to the rehire category for officers laid off or scheduled for layoff on a specific future date post‐ application. Award modifications under CHP are evaluated on a case‐by‐case basis. The COPS Office will only consider a modification request after an agency makes final, approved budget and/or personnel decisions. An agency may implement the modified award following written approval from the COPS Office. Please be aware that the COPS Office will not approve any modification request that results in an increase of federal funds.   7. Evaluations. The COPS Office may conduct monitoring or sponsor national evaluations of its award programs. The recipient agrees to cooperate with the monitors and evaluators.   8. Reports/Performance Goals. To assist the COPS Office in monitoring and tracking the performance of your award, your agency will be responsible for submitting quarterly programmatic progress reports that describe project activities during the reporting period and quarterly Federal Financial Reports using Standard Form 425 (SF‐425). The progress report is used to track your agency’s progress toward implementing community policing strategies and to collect data to gauge the effectiveness of increasing your agency’s community policing capacity through COPS Office funding.   9. Award Monitoring Activities. Federal law requires that law enforcement agencies receiving federal funding from the COPS Office must be monitored to ensure compliance with their award conditions and other applicable statutory regulations. The COPS Office is also interested in tracking the progress of our programs and the advancement of community policing. Both aspects of award implementation—compliance and programmatic benefits—are part of the monitoring process coordinated by the U.S. Department of Justice. Award monitoring activities conducted by the COPS Office include site visits, office‐based grant reviews, alleged noncompliance reviews, financial and programmatic reporting, and audit resolution. As a COPS Office award recipient, you agree ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 2 of 12 Page 15 of 74 to cooperate with and respond to any requests for information pertaining to your award.   10. Federal Civil Rights. As a condition of receipt of federal financial assistance, you acknowledge and agree that you will not (and will require any subrecipient, contractors, successors, transferees, and assignees not to), on the grounds of race, color, religion, national origin, sex, or disability unlawfully exclude any person from participation in, deny the benefits of, or employment to any person, or subject any person to discrimination in connection with any programs or activities funded in whole or in part with federal funds. You will also not discriminate in the delivery of benefits or services based on age. These civil rights requirements are found in the non‐discrimination provisions of Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. § 2000d); the Omnibus Crime Control and Safe Streets Act of 1968, as amended (42 U.S.C. § 3789d); Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794); the Age Discrimination Act of 1975, as amended (42 U.S.C. § 6101); Title IX of the Education Amendments of 1972, as amended (20 U.S.C. § 1681); and the corresponding U.S. Department of Justice regulations implementing those statutes at 28 C.F.R. Part 42 (subparts C, D, E, G, and I). You also agree to comply with Executive Order 13279, as amended by Executive Order 13559, and the implementing regulations at 28 C.F.R Part 38, Partnerships With Faith‐Based and Other Neighborhood Organizations, which requires equal treatment of religious organizations in the funding process and prohibits religious discrimination against beneficiaries.   11. Equal Employment Opportunity Plan (EEOP). All recipients of funding from the COPS Office must comply with the federal regulations pertaining to the development and implementation of an Equal Employment Opportunity Plan (28 C.F.R. Part 42 subpart E).   12. False Statements. False statements or claims made in connection with COPS Office awards may result in fines, imprisonment, debarment from participating in federal awards or contracts, and/or any other remedy available by law.   13. Duplicative Funding. The recipient understands and agrees to notify the COPS Office if it receives, from any other source, funding for the same item or service also funded under this award.   14. Additional High‐Risk Recipient Requirements. The recipient agrees to comply with any additional requirements that may be imposed during the award performance period if the awarding agency determines that the recipient is a high‐risk recipient (2 C.F.R. § 200.207).   15. System for Award Management (SAM) and Universal Identifier Requirements. The Office of Management and Budget requires federal agencies to include the following standard award term in all awards and cooperative agreements made on or after October 1, 2010: I. System for Award Management and Universal Identifier Requirements   A. Requirement for System for Award Management   Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain the currency of your information in the SAM until you submit the final financial report required under this award or receive the final payment, whichever is later. This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term.   B. Requirement for unique entity identifier   If you are authorized to make subawards under this award, you:   1. Must notify potential subrecipients that no entity (see definition in paragraph C of this award ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 3 of 12 Page 16 of 74 term) may receive a subaward from you unless the entity has provided its unique entity identifier to you.   2. May not make a subaward to an entity unless the entity has provided its unique entity identifier to you.   C. Definitions   For purposes of this award term:   1. System for Award Management (SAM) means the Federal repository into which an entity must provide information required for the conduct of business as a recipient. Additional information about registration procedures may be found at the SAM Internet site (currently at http://www.sam.gov).   2. Unique entity identifier means the identifier required for SAM registration to uniquely identify business entities.   3. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25, subpart C:   a. A Governmental organization, which is a State, local government, or Indian Tribe; b. A foreign public entity; c. A domestic or foreign nonprofit organization;   d. A domestic or foreign for‐profit organization; and   e. A Federal agency, but only as a subrecipient under an award or subaward to a non‐Federal entity.   4. Subaward:   a. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. b. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see 2 CFR 200.330). c. A subaward may be provided through any legal agreement, including an agreement that you consider a contract. 5. Subrecipient means an entity that: a. Receives a subaward from you under this award; and b. Is accountable to you for the use of the Federal funds provided by the subaward.   16. Reporting Subawards and Executive Compensation. The Office of Management and Budget requires federal agencies to include the following standard award term in all awards and cooperative agreements made on or ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 4 of 12 Page 17 of 74 after October 1, 2010: I. Reporting Subawards and Executive Compensation. a. Reporting of first‐tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111‐5) for a subaward to an entity (see definitions in paragraph e. of this award term). 2. Where and when to report. i. You must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.) 3. What to report. You must report the information about each obligating action that the submission instructions posted at http://www.fsrs.gov specify. b. Reporting Total Compensation of Recipient Executives. 1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if — i. the total Federal funding authorized to date under this award is $25,000 or more; ii. in the preceding fiscal year, you received — (A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report executive total compensation described in paragraph b.1. of this award term: i. As part of your registration profile at https://www.sam.gov. ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 5 of 12 Page 18 of 74 ii. By the end of the month following the month in which this award is made, and annually thereafter. c. Reporting of Total Compensation of Subrecipient Executives. 1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first‐tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if — i. in the subrecipient's preceding fiscal year, the subrecipient received — (A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and (B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and ii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term: i. To the recipient. ii. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year. d. Exemptions. If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report: i. Subawards, and ii. The total compensation of the five most highly compensated executives of any subrecipient. e. Definitions. For purposes of this award term: 1. Entity means all of the following, as defined in 2 CFR part 25: ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 6 of 12 Page 19 of 74 i. A Governmental organization, which is a State, local government, or Indian tribe; ii. A foreign public entity; iii. A domestic or foreign nonprofit organization; iv. A domestic or foreign for‐profit organization; v. A Federal agency, but only as a subrecipient under an award or subaward to a non‐Federal entity. 2. Executive means officers, managing partners, or any other employees in management positions. 3. Subaward: i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see Sec. __ .210 of the attachment to OMB Circular A‐133, "Audits of States, Local Governments, and Non‐Profit Organizations"). iii. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 4. Subrecipient means an entity that: i. Receives a subaward from you (the recipient) under this award; and ii. Is accountable to you for the use of the Federal funds provided by the subaward. 5. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)): i. Salary and bonus. ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments.   iii. Earnings for services under non‐equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. iv. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans. v. Above‐market earnings on deferred compensation which is not tax‐qualified. ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 7 of 12 Page 20 of 74 vi. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. 17. Debarment and Suspension. The recipient agrees not to award federal funds under this program to any party which is debarred or suspended from participation in Federal assistance programs. 18. Employment Eligibility. The recipient agrees to complete and keep on file, as appropriate, a Bureau of Citizenship and Immigration Services Employment Eligibility Verification Form (I‐9). This form is to be used by recipients of federal funds to verify that persons are eligible to work in the United States. 19. Whistleblower Protection. The recipient agrees not to discharge, demote, or otherwise discriminate against an employee as reprisal for the employee disclosing information that he or she reasonably believes is evidence of gross mismanagement of a federal contract or award, a gross waste of federal funds, an abuse of authority relating to a federal contract or award, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal contract (including the competition for or negotiation of a contract) or award. The recipient also agrees to provide to their employees in writing (in the predominant native language of the workforce) of the rights and remedies provided in 41 U.S.C. § 4712. Please see appendices in the Award Owner’s Manual for a full text of the statute. 20. Mandatory Disclosure. Recipients and subrecipients must timely disclose in writing to the COPS Office or pass‐through entity, as applicable, all federal criminal law violations involving fraud, bribery, or gratuity that may potentially affect the awarded federal funding. Failure to make required disclosures can result in any of the remedies, including suspension and debarment, described in 2 C.F.R. § 200.338. 21. Conflict of Interest. Recipients and subrecipients must disclose in writing to the COPS Office or pass‐through entity, as applicable, any potential conflict of interest affecting the awarded federal funding in accordance with 2 C.F.R. § 200.112. 22. Contract Provision. All contracts made by the award recipients under the federal award must contain the provisions required under 2 C.F.R. Part 200, (Appendix II to Part 200 — Contract Provisions for Non‐Federal Entity Contracts Under Federal Awards). Please see appendices in the Award Owner’s Manual for a full text of the contract provisions. 23. Restrictions on Internal Confidentiality Agreements. No recipient or subrecipient under this award, or entity that receives a contract or subcontract with any funds under this award, may require any employee or contractor to sign an internal confidentiality agreement or statement that prohibits or otherwise restricts the lawful reporting of waste, fraud, or abuse to an investigative or law enforcement representative of a federal department or agency authorized to receive such information. 24. Recipient Integrity and Performance Matters. The Office of Management and Budget requires federal awarding agencies to include the following standard award term in all awards over $500,000 made on or after January 1, 2016: A. Reporting of Matters Related to Recipient Integrity and Performance 1. General Reporting Requirement  If the total value of your currently active awards, cooperative agreements, and procurement contracts from all Federal awarding agencies exceeds $10,000,000 for any period of time during the period of performance of this Federal award, then you as the recipient during that period of time must maintain the currency of information reported to the System for Award Management ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 8 of 12 Page 21 of 74 (SAM) that is made available in the designated integrity and performance system (currently the Federal Awardee Performance and Integrity Information System (FAPIIS)) about civil, criminal, or administrative proceedings described in paragraph 2. of this award term and condition. This is a statutory requirement under section 872 of Public Law 110‐417, as amended (41 U.S.C. 2313). As required by section 3010 of Public Law 111‐212, all information posted in the designated integrity and performance system on or after April 15, 2011, except past performance reviews required for Federal procurement contracts, will be publicly available. 2. Proceedings About Which You Must Report Submit the information required about each proceeding that: a. Is in connection with the award or performance of an award, cooperative agreement, or procurement contract from the Federal Government; b. Reached its final disposition during the most recent five year period; and c. Is one of the following: (1) A criminal proceeding that resulted in a conviction, as defined in paragraph 5. of this award term and condition; (2) A civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more; (3) An administrative proceeding, as defined in paragraph 5. of this award term and condition, that resulted in a finding of fault and liability and your payment of either a monetary fine or penalty of $5,000 or more or reimbursement, restitution, or damages in excess of $100,000; or (4) Any other criminal, civil, or administrative proceeding if: i. It could have led to an outcome described in paragraph 2.c.(1), (2), or (3) of this award term and condition; ii. It had a different disposition arrived at by consent or compromise with an acknowledgment of fault on your part; and iii. The requirement in this award term and condition to disclose information about the proceeding does not conflict with applicable laws and regulations. 3. Reporting Procedures Enter in the SAM Entity Management area the information that SAM requires about each proceeding described in paragraph 2. of this award term and condition. You do not need to submit the information a second time under assistance awards that you received if you already provided the information through SAM because you were required to do so under Federal procurement contracts that you were awarded. 4. Reporting Frequency During any period of time when you are subject to the requirement in paragraph 1. of this award ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 9 of 12 Page 22 of 74 term and condition, you must report proceedings information through SAM for the most recent five year period, either to report new information about any proceeding(s) that you have not reported previously or affirm that there is no new information to report. Recipients that have Federal contract, award, and cooperative agreement awards with a cumulative total value greater than $10,000,000 must disclose semiannually any information about the criminal, civil, and administrative proceedings. 5. Definitions For purposes of this award term and condition: a. Administrative proceeding means a non‐judicial process that is adjudicatory in nature in order to make a determination of fault or liability (e.g., Securities and Exchange Commission Administrative proceedings, Civilian Board of Contract Appeals proceedings, and Armed Services Board of Contract Appeals proceedings). This includes proceedings at the Federal and State level but only in connection with performance of a Federal contract or award. It does not include audits, site visits, corrective plans, or inspection of deliverables. b. Conviction, for purposes of this award term and condition, means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere. c. Total value of currently active awards, cooperative agreements, and procurement contracts includes — (1) Only the Federal share of the funding under any Federal award with a recipient cost share or match; and (2) The value of all expected funding increments under a Federal award and options, even if not yet exercised. 25. Compliance with 8 U.S.C. 1373. Authority to obligate or expend contingent on compliance with 8 U.S.C. 1373. NOTE: This grant condition applies only to State or local government entities or to non‐State or local government entities that make subawards with these funds to a State or local government entity.  State or local government entity recipients of this award, and any subrecipient of this award at any tier that is an entity of a State or of a unit of local government, may not obligate or expend award funds if – at the time of the obligation or expenditure – the "program or activity" of the recipient funded in whole or in part with the award funds (which includes any such program or activity of any subrecipient at any tier) is subject to any prohibitions or restrictions on sending to, requesting or receiving from, maintaining, or exchanging information on citizenship or immigration status as described in 8 U.S.C. 1373(a) or (b), including any prohibitions or restrictions imposed or established by a State or local government entity or official.  A subrecipient of this award (at any tier) that is an entity of a State or of a unit of local government may not obligate or expend award funds if – at the time of the obligation or expenditure – the "program or activity" of the subrecipient (which includes any such program or activity of any subrecipient at any further tier) funded (in whole or in part) with award funds is subject to any prohibitions or restrictions on sending to, requesting or receiving from, maintaining, or exchanging information on citizenship or immigration status as described in 8 U.S.C. 1373(a) or (b), including any prohibitions or restrictions imposed by a State or local government entity or official.  ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 10 of 12 Page 23 of 74 Any obligations or expenditures of a recipient or subrecipient that are impermissible under this condition shall be unallowable costs for purposes of this award.  Rules of Construction/For purposes of this condition, "program or activity" means what it means under section 606 of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d‐4a). Pursuant to 8 U.S.C. 1551 note, references to the Immigration and Naturalization Service in 8 U.S.C. 1373 are to be read, as a legal matter, as references to particular components of the U.S. Department of Homeland Security.  Should any provision of a condition of this award be held to be invalid or unenforceable by its terms, then that provision shall first be applied with a limited construction so as to give it the maximum effect permitted by law (to any person or circumstance) under this award. Should it be held, instead, that a condition (or a provision thereof) is of utter invalidity or unenforceability, such condition (or such provision) shall be deemed severable from this award. Any questions about the meaning or scope of this condition should be directed, prior to acceptance of this award, to the Office of Community Oriented Policing Services Legal Division at 202‐514‐3750. 26. Contracts and/or MOUs with other Jurisdictions. Sworn law enforcement officer positions awarded must be used for law enforcement activities or services that benefit your agency and the population that it serves. The items funded under the CHP award cannot be utilized by other agencies unless the items benefit the population that your agency serves. Your agency may use items funded under the CHP award to assist other law enforcement agencies under a resource sharing, mutual aid, or other agreement to address multi‐jurisdictional issues as described in the agreement.   27. Retention. At the time of award application, your agency committed to retaining all sworn officer positions awarded under the CHP award with state and/or local funds for a minimum of 12 months following the conclusion of 36 months of federal funding for each position, over and above the number of locally‐funded sworn officer positions that would have existed in the absence of the award. Your agency cannot satisfy the retention requirement by using CHP‐funded positions to fill locally‐funded vacancies resulting from attrition.   28. Community Policing. Community policing activities to be initiated or enhanced by your agency and the officers funded by this award program were identified and described in your CHP award application. In sections VI(A) and (B), your agency developed a community policing plan for the CHP award with specific reference to a crime or disorder problem and the following elements of community policing: (a) problem solving—your agency’s plan to assess and respond to the problem identified; (b) community partnerships and support, including related governmental and community initiatives that complement your agency’s proposed use of CHP funding; and (c) organizational transformation—how your agency will use the funds to reorient its mission to community policing or enhance its involvement in and commitment to community policing. Throughout the CHP award period, your agency is required to implement the community policing plan it set forth in the CHP award application.   The COPS Office defines community policing as a philosophy that promotes organizational strategies that support the systematic use of partnerships and problem‐solving techniques to proactively address the immediate conditions that give rise to public safety issues such as crime, social disorder, and fear of crime. CHP awards through the specific officers funded (or an equal number of redeployed veteran officers) must be used to initiate or enhance community policing activities. All newly hired additional or rehired officers (or an equal number of redeployed veteran officers) funded under CHP must implement your agency’s approved community policing plan, which you described in your award application.   29. Local Match. Recipients are required to contribute a local match of at least 25 percent toward the total cost of the approved award project, unless waived in writing by the COPS Office. The local match must be a cash match from funds not previously budgeted for law enforcement purposes and must be paid during the award period. The local match contribution must be made on an increasing basis during each year of the three‐year award period, ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 11 of 12 Page 24 of 74 with the federal share decreasing accordingly.   30. School Resource Officer (SRO) Training Requirement. COPS Office‐funded SRO(s) are required to complete a National Association of School Resource Officers (NASRO) basic training course no later than nine months after the date shown on the award congratulatory letter. If a COPS Office‐funded SRO leaves the recipient agency after completing the NASRO training, the recipient agrees to pay for the new SRO, who is assigned to backfill this position, to attend a NASRO basic training course. The new SRO must complete the training no later than nine months after being placed in the school.   ORI WA01102 - Award 2017UMWX0103 - Award Terms and Conditions 2017 - CHP - Page 12 of 12 Page 25 of 74   Financial Clearance Memorandum   COPS Hiring Program (CHP)     Chief of Police Robert Metzger Municipal Manager Dave Zabell   Pasco Police Department 525 North 3rd Avenue P.O. Box 293 Pasco, WA  99301 ORI WA01102    Re: COPS Hiring Program award number 2017UMWX0103     Dear Chief of Police Metzger and Municipal Manager Zabell:   A financial analysis of budgeted costs has been completed. Costs under this award appear reasonable, allowable, and consistent with existing guidelines. Exceptions / Adjustments are noted below.     Total officer positions awarded: 4      Approved costs per entry-level officer, per year   Year 1 Year 2 Year 3 Base salary $69,701.00 $75,026.00 $78,898.00 Benefits $31,787.73 $32,124.49 $32,760.70 Social Security $4,321.46 $4,651.61 $4,891.68 Medicare $1,010.66 $1,087.88 $1,144.02 Health insurance $16,874.61 $16,329.00 $16,329.00 Life insurance $50.00 $50.00 $50.00 Vacation $0.00 $0.00 $0.00 Sick leave $0.00 $0.00 $0.00 Page 26 of 74 Retirement $6,224.00 $6,699.00 $7,039.00 Worker's compensation $3,233.00 $3,233.00 $3,233.00 Unemployment insurance $0.00 $0.00 $0.00 Other costs: Vision Insurance $74.00 $74.00 $74.00   Approved total project costs Per officer Grand total Salaries and fringe benefits $320,297.92 $1,281,192.00 Federal share $125,000.00 $500,000.00 Applicant share $195,298.00 $781,192.00 Local match waiver not granted.     Notes:   N/A     ORI WA01102 - Award 2017UMWX0103 - Award Financial Clearance Memo 2017 - CHP - Page 2 of 2 Page 27 of 74 Award Document Supplement   COPS Hiring Program (CHP)     By signing the Award Document to accept this COPS Hiring Program (CHP) award, the recipient agrees to abide by the following Special Award Conditions and/or High Risk Conditions:     Special Award Conditions   Advancing Department of Justice Priority Crime Problem Awards   Your agency has been selected for a COPS Hiring Program (CHP) award to address a particular Department of Justice priority crime problem/focus area, based specifically on your CHP award application’s community policing plan to improve your agency’s public safety response to the critical issues of Illegal Immigration, Violent Crime, or Homeland Security.   Please be advised that, in accepting this award, your agency is agreeing to this Special Condition to its CHP award that requires your agency’s COPS-funded officers (or an equivalent number of locally- funded officers) to initiate or enhance your agency’s community policing plan to address one of the priority crime problems identified above. By signing the 2017 CHP award, your agency understands and agrees to the following:   Your agency will implement the one specific community policing plan identified in your CHP award application; Your agency will address its specific priority crime problem throughout the entire CHP award period; Your agency will implement any organizational changes identified in its CHP award application in Section 6B, Questions 12 and 13;  Your agency will cooperate with any award monitoring by the COPS Office to ensure that it is initiating or enhancing its community policing efforts to address its priority crime problem, which may include your agency having to respond to additional or modified reporting requirements.   Memorandum of Understanding Requirement   (School-based Policing through School Resource Officers Focus Area Only)   By signing the 2017 CHP award, recipients using CHP funding to hire and/or deploy School Resource Page 28 of 74 Officers into schools understand and agree to the following:   Your agency must submit a signed Memorandum of Understanding (MOU) between the law enforcement agency and the school partner(s) to the COPS Office before obligating or drawing down funds under this award. The MOU must be submitted to the COPS Office within 90 days of the date shown on the award congratulatory letter. Your agency’s MOU must contain the following information; The purpose of the MOU Clearly defined roles and responsibilities of the school district and the law enforcement agency, focusing officers’ roles on safety Information sharing Supervision responsibility and chain of command for the SRO Signatures   Note: Please refer to the MOU Fact Sheet for a detailed explanation of the requirements under each of the bullets Your agency’s implementation of the CHP award without submission and acceptance of the required MOU may result in expenditures not being reimbursed by the COPS Office and/or award de-obligation. ORI WA01102 - Award 2017UMWX0103 - Award Special Conditions 2017 - CHP - Page 2 of 2 Page 29 of 74 AGENDA REPORT FOR: City Council January 3, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 1/8/18 FROM: Rick White, Director Community & Economic Development SUBJECT: CDBG Program Section 108 Guaranteed Loan Program (MF# BGAP 2017- 007) I. REFERENCE(S): Resolution 3787 Staff Memo to Planning Commission 12/14/17 Section 108 Draft Application Planning Commission Minutes 12/21/17 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: DISCUSSION III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The Department of Housing and Urban Development (HUD) has established the Section 108 Loan Guarantee Program ("Program") in order to provide below market rate loans for qualified projects that serve the needs of low and moderate income persons. This program is critical towards funding important pieces of Downtown Revitalization. As an Entitlement Grantee receiving funds through the HUD Community Development Block Grant Program (CDBG), the City of Pasco meets the criteria to participate in the Program. Pasco may borrow up to five times our annual CDBG grant, enabling us to maximize the impact of available public funds. Section 108 is a loan guarantee program, not a grant. It offers lower rates both variable and fixed, and flexible repayment terms to meet specific needs and can provide funding to finance a wide variety of eligible activities. The maximum Section 108 loan capacity would be $3,475,000, based on our program year 2017 award of $695,000. Our CDBG entitlement annual allocation would be pledged - possibly in addition with Page 30 of 74 other collateral. Repayment of the loan would be over twenty (20) years. Loan repayment may be made from program income or from the CDBG annual entitlement. If the loan were repaid strictly from the CDBG entitlement funds, the annual allocation typically awarded by Council for infrastructure projects would be reduced for the amount of the loan repayment. For example, instead of allocating $200,000 each year for the next five (5) years for infrastructure projects, the total amount of $1,000,000 may be used to complete projects in one year, and repaid over time. City Council approved Resolution 3787 in September of 2017 authorizing staff to begin the Section 108 Program application. On December 21, 2017 the Planning Commission conducted the first of two required public hearings on the Program and has recommended Council approve the Section 108 Program for the revitalization efforts focused on the Pasco Farmers Market and Peanuts Park. V. DISCUSSION: Eligibility for the Section 108 program is substantially the same as participation in CDBG. Proposed projects must be eligible activities per 24 CFR 570 and meet National Objectives (24 CFR 570.208) such as job creation/retention, area benefit, and housing. The Downtown Revitalization Plan and Peanuts Park renovation projects are eligible activities which would qualify as area benefit. Purchasing a vacant building for the purpose of renting space to a small business would qualify as low-moderate job creation. Other examples of eligible projects: 1. Real estate/site-specific gap financing (projects that promote additional private investment in target area). 2. Location based loan pool to encourage neighborhood development, leverages existing programs, request for applications to identify potential projects and market research, such as: a. Redevelopment of vacant/historic properties for reuse; b. Mixed use commercial and retail development; c. Gateway development; and d. Flagship business. 3. Strategies designed to cultivate healthy markets, such as: a. Infrastructure and public facilities; b. Transit-oriented development; c. Mixed use commercial and retail development; d. Business development loans; and e. Other programs focused on downtown by providing additional Page 31 of 74 incentives. Interest rates charged on interim borrowing is priced at the three-month London Interbank Offered (LIBO) rate, plus 20 basis points. Permanent financing is pegged to yields on Treasury obligations of similar maturity to the principal amount. A small additional basis point spread, depending on maturity, will be added to the Treasury yield to determine the actual rate. The Section 108 Program can be a strong tool for economic revitalization of the Pasco Downtown. Staff has begun work on policies and procedures for the Section 108 Loan Guarantee Program following the individual project application process below: Step 1. Evaluate potential project in terms of community strategy Step 2. Determine whether proposed use of funds is eligible under the program Step 3. Underwrite project(s) for financial feasibility Step 4. Complete citizen participation process and local review Step 5. Application Submission and HUD Approval Step 6. Issuance of the loan guarantee As City Council must conduct the second required public hearing on the Section 108 Program in accord with federal requirements - staff will return this item to Council at the January 16, 2018 Council Meeting. Page 32 of 74 RESOLUTION NO. -2.) A RESOLUTION establishing the Section 108 Loan Guarantee Program and authorizing application to U.S. Department of Housing and Urban Development. WHEREAS, the City of Pasco has qualified as a Community Development Block Grant (CDBG) Entitlement jurisdiction in 1998; and WHEREAS, the City's status as a CDBG Entitlement grantee allows it to borrow U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee funds; and WHEREAS, a CDBG Entitlement grantee may borrow up to five times its annual CDBG allocation through the HUD Section 108 Loan Guarantee program; and WHEREAS, based on the 2017 CDBG entitlement of $695,000, maximum loan capacity is 3,475,000; and Now, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: Section 1. The City Council directs the City Manager to develop and maintain administrative policies procedures establishing a HUD Section 108 Loan Guarantee Program. Section 2. The Staff shall administer the Section 108 application process in compliance with HUD Section 108 guidelines and shall focus on economic opportunities and community infrastructure projects within the downtown revitalization area. PASSED by the City Council of the City of Pasco this (5;% day of e Ie -In bel-, 2017 Matt Watkins Mayor ATT ST: AP D AS TO FORM: Daniela Erickson Leland B. Kerr City Clerk City Attorney Page 33 of 74 MEMORANDUM DATE:December 14, 2017 TO:Planning Commission FROM:Angela R. Pitman, Block Grant Administrator SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM SECTION 108 GUARANTEED LOAN PROGRAM APPLICATION (MF# BGAP2017-007) Reference: 1) Draft Section 108 Application Background The Department of Housing the Department of Housing and Urban Development (HUD) has established the Section 108 Loan Guarantee Program ("Program") in order to provide below-market rate loans for qualified projects that serve the needs of low and moderate income persons. The City of Pasco meets the criteria to participate in the Program as a Grantee, receiving funds through the HUD Community Development Block Grant Program (CDBG). City Council approved participation in the Peanuts Park Renovation project that is partially funded with CDBG funds. The project will substantial benefit low and moderate income persons in east and central Pasco. Together with other improvements, the Peanuts Park renovation project is expected stimulate economic growth in the Downtown Revitalization area, and create jobs for low and moderate income persons. Estimated Funds Available Recipients may borrow up to five times their annual CDBG grant, enabling them to maximize the impact of available public funds by leveraging grant resources into private loans. Section 108 is a loan guarantee program, not a grant. It offers lower rates both variable and fixed, and flexible repayment terms to meet project-specific needs and provides funding to finance a wide variety of eligible activities. The maximum Section 108 loan capacity would be $3,475,000, based on the program year 2017 award of $695,000. Citizen Participation Application for Section 108 was included in the 2017 Annual Action Plan without the loan amount; therefore, an amendment is needed to update the plan to reflect the requested Section 108 loan application. A display advertisement was published in the local section of the Tri-City Herald on December 1 and 10, and in Spanish in Tu Decides on December 1 and 9 notifying the public of this Public Hearing before the Planning Commission on December 21, 2017. The publication also initiated the public comment period beginning December 15, 2017 and ending January 16, 2018. A copy of the draft Section 108 Application was made available at the Planning Department, public libraries and Housing Authorities as well as on the city’s website. Application The City of Pasco proposes to submit the draft application (Reference 1) for the Section 108 Guaranteed Loan Program to HUD. The draft application proposes to establish an Economic & Community Development Loan Pool to benefit the revitalization of Downtown Pasco and surrounding neighborhoods. The loan pool may be used for area wide infrastructure improvements, as well as provide loans to for-profit businesses. The application must include a repayment schedule and security (CDBG funds, additional loan security) for loan repayment. If approved, HUD will issue a federal guarantee for the note to an approved Lender/Investor upon approval which serves as loan commitment to the application. Page 34 of 74 Loan Amount The requested loan amount for the City is as follows: Program HUD Allocation Program Income Total Section 108 Loan Guarantee $3,475,000 Requested To be determined $3,475,000 Requested Projects The City of Pasco will propose projects expected to be performed or completed with the loan and estimated accomplishments upon completion of the projects. As projects are initiated, the City would request advances or reimbursements (drawdowns from the line of credit). All program income received will be used to make repayment to the line of credit. In the case of infrastructure projects where program income is not received, the City will be using CDBG funding to repay the Section108 activities. The first project proposed in the fund is the redevelopment of the Pasco Farmers Market, Peanuts Park and related infrastructure. The projected loan amount for the first project is $2,500,000, subject to HUD eligibility and underwriting. Eligibility and National Objective Eligibility for the Section 108 program is the substantially the same as participation in CDBG. All projects must meet Eligibility and National Objective requirements specified in 24 CFR 570. The first project proposed meets eligibility requirements under HUD Matrix Code 03F Park, Recreational Facility improvements [24 CFR 570.200 and 24 CFR 570.703(b)] and National Objectives under Low-Moderate Area Benefit (24 CFR 570.208(a)(1)). Examples of project National Objective beneficiaries: Low-mod Housing (LMH) - $1.5 million in guaranteed funds used for rehabilitation of housing units (LMH). Units will be occupied by low-moderate households. Low-moderate Jobs (LMJ) - $1.3 million in guaranteed funds used to provide loans to small businesses, and $220K to micro-borrowers; businesses expect to create or retain 44 full-time equivalent jobs. Low-moderate Jobs (LMJ) - $15.1 million in guaranteed 3rd party loans to businesses (e.g. for- profit business manufacturing cosmetics and skin care products, created 700 jobs, and leveraged $17.2 million in private investment. Low-moderate Clientele (LMC) - $1.6 million in permanent financing to leverage $2.4 million for construction of an education center, one of three built in a high poverty area of the city for to low income clientele. Low-moderate Area (LMA) - $6 million in guaranteed loan funds for rehabilitation of an existing public facility that is no longer adequate to meet community needs, construction of multi-purpose recreation center located in an area serving population that is >60% LMI. Elimination of Slum & Blight – served as catalyst for redevelopment of entire neighborhood, dilapidated, deteriorated buildings and structures, soil and groundwater contamination. Produced 227,000 sf of retail space and 27,000 sf of restaurant space. Slum & Blight must be designated by Council. Activities must primarily benefit low-moderate income (70% LMI Benefit), and meet applicable public benefit standards (such as no more than $10,000 per job created for business providing services to low- moderate income areas, or $35,000 per job created for business creating jobs available to or held by low- moderate income persons). Page 35 of 74 Other regulatory requirements applicable to projects include Procurement, Environmental Review, Uniform Administrative Requirements (2 CFR 200), Labor Compliance (Davis Bacon), Relocation (URA), Fair Housing, and Lead Based Paint. Loan Guarantee Financing Fee In FY 2016, HUD regulations were changed to add a one time, upfront cost that is not annual and not added into the interest rate of the loan. The fee may be financed as part of the guaranteed loan and paid for with CDBG or another source of funding. The 2017 fee is 2.59% of the principal; for a loan of $2.5 million, this fee would be $64,750. Discussion The Planning Commission should evaluate the Section 108 Application and provide staff direction to formulate a recommendation for City Council. The Section 108 Program is a strong tool for economic revitalization. Proposed schedule for meeting requirements to apply for HUD Section 108 Loan Guarantee is as follows: 1. Completion of a Citizen Participation Process – January 16, 2018 2. Council Approval of Section 108 Application – January 16, 2018 3. Submittal to HUD – January 18, 2018 The City Staff would like to thank the members of the Planning Commission for your time and assistance. MOTION: I move the Planning Commission close the public hearing and recommend the City Council approve the Section 108 Loan Guarantee pre-application and proposed use of funds for the Peanuts Park Renovation/Farmers Market Redevelopment and Infrastructure Project. Page 36 of 74 CITY OF PASCO APPLICATION FOR LOAN GUARANTEE FROM U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR AN ECONOMIC AND COMMUNITY DEVELOPMENT LOAN FUND IN THE AMOUNT OF $3,475,000 December 2017 Page 37 of 74 ECONOMIC DEVELOPMENT LOAN FUND PASCO, WASHINGTON Project Description The purpose of this Section 108 application is to assist with economic and community development activities in the City of Pasco. The guaranteed loan funds will be used to create a loan pool targeted to projects that will have positive economic and community development benefits within East Pasco's neighborhood business district. Individual projects will be evaluated by City of Pasco's staff, as well as by consultant experts in financial underwriting. The City has identified two projects that will likely make use of this fund. The first of these, the Pasco Plaza Mercado (Market Plaza), is located on 4th Avenue between Lewis and Columbia Streets. The project includes renovation of the Pasco Farmers Market Pavilion, as well Peanuts Park. The Pasco Farmers Market celebrates its 30th Anniversary in 2018, and is a community resource and gathering place for a lower income, predominately minority community. The second project is the replacement of deteriorated sidewalks and installation of pedestrian amenities that connect the Market Plaza to the surrounding neighborhoods. The Section 108 loans for both of these projects will be debt serviced with CDBG funds. Section 108 Submission Requirements A.Community Development Objectives The Section 108 loan fund will result in lending for economic and community development in Pasco. This activity will further the City of Pasco's Economic Development Goals as listed in the City's Consolidated Plan, all of which are applicable. Policies B.Description of how the Proposal meets one of the Criteria in 24 CFR 570.200(a)(2) - National Objectives. Section 570.200(a)(2) lists the National Objectives that must be met by all Community Development Block Grants and therefore Section 108 projects. This section requires that all funded activities meet one of three national objectives. These objectives are: 1) benefit to low and moderate income families; 2) aid in the prevention or elimination of slums or blight; and 3) meeting other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available. Section 570.208 defines the criteria under which an activity may meet the requirements of Section 570.200(a)(2). Each project funded through the Section 108 loan fund will meet one of the National Objectives listed in Section 570.200(a)(2) as detailed in Section 570.208. The City of Pasco's Section 108 loan fund will create jobs for low and moderate income persons, provide services to low income areas, provide infrastructure to create housing opportunities for low income individuals, and/or eliminate conditions of blight as defined in Section 570.208.Page 38 of 74 C.Community Development Block Grant Eligibility In addition to furthering National Objectives, all Section 108 loans must also meet the eligibility requirements of the Community Development Block Grant program. All activities funded through the City of Pasco's Section 108 loan fund will meet the program eligibility requirements as set forth in Sections 570.201, .202, .203, or .204. The two projects currently identified meet the eligibility requirements of Section 570.20l(c). Under 570.201(c), the City can undertake public facilities and improvements through: "Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements, except as provided in Section 570.207(a)." Section 570.207(a) excludes "buildings or portions thereof, used for the general conduct of government, general governmental expenses and political activities." None of the projects to be assisted with Section 108 proceeds will include buildings used for the general conduct of government, general governmental expenses, nor for political activity. If the City identifies activities under Section 570.203, it will insure that those activities additional comply with Section 570.209 Section 570.209 Guidelines Guidelines and Objectives for Evaluating Project Costs and Financial Requirements. All activities eligible under Section 570.203 must meet the requirements of Section 570.209. This section outlines guidelines for ensuring that a proposed project carries out an economic development objective in an appropriate manner. These guidelines under 570.209(a) are not mandatory but serve as a framework for financially underwriting economic development projects. In evaluating proposed projects eligible under Section 570.203 and to be funded from the Section 108 Economic and Community Development Loan Fund, the City of Pasco will use the following criteria. Project Management The City of Pasco, Department of Community and Economic Development (DCED) will administer the fund. DCED will underwrite all loans. Should a project to assist a for profit business emerge as a candidate for loan funding, the city will use an experienced consultant to advise on project feasibility. Underwriting Standards for City of Pasco Section 108 Loan Fund 1.National Objective All loans shall meet a national objective as specified in 24 CFR 570.208. No loan shall be approved without verification of compliance with the national objective requirements, specified in 24 CFR 570.208, by the Washington State Office of the United States Department of Housing and Urban Development. Page 39 of 74 2.Eligibility In addition to meeting one of the program's National Objectives, all projects assisted through the loan fund must fall within one of the eligible activities listed in 570.703. 3.Guidelines for evaluating and selecting economic development projects For all activities eligible under 570.703(i), economic development activities, the project will be required to meet the guidelines listed under 570.209: Guidelines for evaluating and selecting economic development projects. No loan shall be approved without verification of compliance with the public benefit standards as specified in 24 CFR 570.209(b) by the Washington State Office of the United States Department of Housing and Urban Development. 4.Financial Underwriting In loan underwriting the City shall adhere to the following criteria. a.Real Estate Loans Real Estate Loans shall be evaluated based on: Ability to Repay Collateral Development Team Capacity and Experience Developer Commitment Character of the Developer Ability to Repay: Projects to be funded will have at least a 1.1 projected debt coverage ratio. If the project includes more than a small percentage of its rental income from start-up or financially weak tenants then a higher debt coverage ratio shall be required. Collateral: Projects to be funded should have a loan to value ratio of not greater than 80 percent. This value must be supported by an appraisal prior to funding. If greater than an 80 percent loan to value ratio is proposed, outside collateral sufficient to provide an 80 percent loan to value shall be required. In certain cases outside guarantees may suffice for additional collateral. Development Team Capacity and Experience: Projects funded shall have a development team that has both the capacity and experience to complete the project as demonstrated by past projects and financial strength. Developer Commitment: Developer commitment can take many forms. While each project is Page 40 of 74 likely to be different, the forms of developer commitment that can be expected include: adequate equity, guarantees of completion, guarantees to fund shortfalls or guarantees of minimum cash flow. Character: Projects to be funded should have developers with good credit histories, demonstrated integrity, and quality references. b.Business Loans Business Loans shall be evaluated based on: Ability to Repay Collateral Guarantees Financial Strength Management Experience Character of the Principals Ability to Repay: All businesses funded with the program shall have existing cash flow (profits after tax, plus depreciation, plus excess officers income, plus rent savings if applicable) sufficient to repay the loan. Projections must be supported by strong evidence that they will materialize. Collateral: All business loans must be supported by collateral. Real Estate must be supported by an appraisal and will be generally accepted up to 80 percent of its value. Machinery and equipment, depending on its nature, will be accepted from 40 percent to 60 percent of its fair market value. Accounts receivable and inventory will normally be used to secure operating debt and will generally not be taken as collateral. Outside collateral, such as personal residences, shall be valued up to 80 percent of their fair market value net of existing debt. Guarantees: All principals with 20 percent or more or a controlling interest, if less than 20 percent, shall provide personal guarantees. Financial Strength: Three years of financial statements on the business, plus a personal financial statement on all principals of the business shall be analyzed to determine if the company is well run and has the ability to manage its accounts and pay its obligations. Page 41 of 74 Management Experience: The management must have experience in the business or in a similar business, be able to demonstrate an ability to manage, and have the depth in management to withstand unforeseen transitions. Character of the Principals: The personal financial statements and credit history of the principals must demonstrate honesty and trustworthiness. D.Eligibility under 24 CFR 570.703 Each of the projects to be assisted with Section 108 guaranteed loan funds and Economic Development Incentive grant funds must meet one of the eligibility requirements listed in 24 CFR 570.703. The initial two projects detailed in this application are eligible under 570. 703(1): Acquisition, construction, reconstruction, rehabilitation, or installation of public facilities (except for buildings for the general conduct of government), public streets, sidewalks and other site improvements and public utilities. Other projects to be funded under the program may also qualify under 570.703(a)(b)(c)(d)(e)(f)(h)&(l). c.Substitution of CDBG funds for Private Sources City staff assisted by consultants will review all projects to ensure that each loan minimizes the use of CDBG funds. It is in the City of Pasco's self interest to insure that there is no substitution of CDBG funding for non-federal funding. Given the limited availability of federal funds, the city staff will work diligently to maximize the use of private, non-federal funding in all projects. All projects will be reviewed to ensure that private sources of financing have been maximized and that the rate of return on equity is reasonable and within general standards. E.A Description of the Pledge of CDBG Guarantee The City of Pasco understands that if the participants in this Section 108 loan fund fail to make timely payments and the City of Pasco therefore fails to make a required payment on its notes, HUD will deduct that payment from the City of Pasco's CDBG Letter of Credit. In accepting this loan guarantee, the City of Pasco has pledged its CDBG funds and all other applicable grants as security for the guarantee. (Please refer to Attachment A - Certifications.) Page 42 of 74 In requesting approval of this loan guarantee fund the City of Pasco is requesting a commitment for a 20-year term. The principal repayment term will be determined for each loan at time of closing. F.Certifications The City of Pasco will comply with all certification required under 570.704. Page 43 of 74 Schedule for Repayment of the Loan The applic ant must provide the f unding matrix s how n below , listing each pr ogram or program component f or w hic h HUD f unding is being r eques ted and submit this inf ormation w ith the application f or f ederal f inancial as sistance. Grant Program* HUD Matching Other HUD Other Federal State Local/Tribal Other Program Total Shar e Funds Funds Share Share Share Funds Inc ome Sectio n 108 Ec o no m ic D ev elo pm ent Lo an Fund City of Pas co 3,475,000.00$ 3,475,000.00$ Gr and Totals 3,475,000.00$ 3,475,000.00$ Page 44 of 74 Page 45 of 74 0MB Approval No. 2501-0017 (exp. 03/31/2011) HUD-424-M Funding Matrix The applicant must provide the funding matrix shown below, listing each program or program component for which HUD funding is being requested and submit this information with the application for federal financial assistance. Grant Program· Section 108 Economic Development Loan Fund $3,352,180 $3,352,180 City of Pasco. A Grand Totals $3,352,180 $3,352,180 Page 1 of2 form HUD-424-M (03/2003) HUD Matching Other HUD Other Federa State Local/Tribal Other Program Total Share Funds Funds Share Share Share Funds Income Page 46 of 74 PLANNING COMMISSION MINUTES 12/21/2017 PUBLIC HEARING: F. Block Grant Section 108 Loan Program Application - CDBG Chairman Cruz read the master file number and asked for comments from staff. Michael Morales, Economic Development Program Manager, discussed the Section 108 Loan Program Application for block grant funds. Mr. Morales reminded the Commission that this item had been discussed in a workshop during the previous Planning Commission meeting. He explained that this will be the City’s first effort in pursuing this program as an entitlement community. It is a loan guarantee provision of the Block Grant program and the Planning Commission is the advisory board for that program with the city. The program is a tool that was developed as a way for cities to leverage their CDBG funds. The City is eligible to borrow up to five times its annual entitlement amount and at this time that number sits at approximately 3.3 million dollars. These loan projects, Mr. Morales says, must meet all the rules, public benefit, and national objectives as CDBG. CDBG is always the backstop as loan security for these loans, first and foremost there are always typical real estate collateral personal guarantees involved when one is dealing with the private sector. Where a city takes out a public facilities project, there is still some negotiation with HUD that takes account of what the cost benefit will be and what sort of collateral the city will be able to provide. In this case, Pasco is fortunate that it has a number of properties around the community, and HUD is typically flexible about being subordinate to senior loans. Mr. Morales goes on to say that in the last decade, cities began establishing loan pools as a way to put a marker on the amount of Section 108 dollars. Each project is individually underwritten to take to HUD for future approval. In this particular case, the City would be moving forward in establishing a 3.3 million dollar pool and then pursuing a public facilities project in the downtown area as its first project. The City is looking to make a number of improvements in the downtown core area to help it better position itself as a place for regional events and tourism. Projects like the Lewis Street overpass will help drive investment in downtown, so it could be timely for the City to leverage those investments for additional grant dollars. The initial focus area is between Clark Street and Columbia Street, north and south, and between 2nd Avenue and 4th Avenue on the east and west. The goal is to make the downtown area more pedestrian, tourist, and family friendly by offering different amenities. Repurposing underutilized buildings and working with existing or new property owners gives Pasco a little more flare. One of the first projects the City would be proposing is a market plaza, which will build upon the repurposing and rebranding of Peanuts Park as well as the North Promenade. Mr. Morales then discusses the design layout of the said Market Plaza and the reimagination of Peanuts Park. The City will follow with a financing piece for the Plaza. It is estimated that the Plaza Page 47 of 74 will be budgeted in the 5 to 6 million dollar range. Chairman Cruz asked the Commission if there were any questions. Commissioner Portugal stated that in the past, locating electrical outlets was a challenge and asked if that would be addressed. Mr. Morales assured the Commission this would be addressed and also stated that where and how they are utilized is important. Commissioner Mendez asked where the rest of the funding is going to come from if the project will cost 6 million dollars. Mr. Morales responded that the City has submitted as capital budget request to the State Legislature in the last two sessions and is also looking at additional grant resources. The City is also considering naming rights as a possibility for the Famers Market. With no further questions or comments the public hearing was closed. Commissioner Campos moved, seconded by Commissioner Bykonen, to close the hearing on the Section 108 Loan Program Application and recommend the City Council approve the Section 108 Loan Guarantee pre-application and proposed used of funds for the Peanuts Park Renovation/Farmers Market Redevelopment and Infrastructure Project. The motion passed unanimously. Page 48 of 74 AGENDA REPORT FOR: City Council December 28, 2017 TO: Dave Zabell, City Manager Workshop Meeting: 1/8/18 FROM: Rick White, Director Community & Economic Development SUBJECT: GMA Development Agreements I. REFERENCE(S): Planning Commission Memo dated Nov. 1, 2017 Planning Commission Minutes Nov. 16, 2017 Proposed Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A 1995 State law enacted the Local Project Review Act - which was codified as 36.70B RCW. This addition to State law provides specific authority and direction for development agreements. A development agreement is a voluntary contract between a local jurisdiction and a person who owns or controls property. A development agreement details the obligations of both parties (jurisdiction and owner) and specifies the standards and conditions that will govern development of the property. A development agreement provides assurances to the developer that the development regulations that apply to a project will not change during the term of the agreement. An agreement can also provide certainty to a jurisdiction that certain standards or conditions will be imposed on a project to better incorporate timing of improvements, fees or physical improvements and amenities. Such agreements are commonly utilized by cities as a tool to address issues unique to the proposed development of a particular property or properties. Page 49 of 74 The Planning Commission considered the proposed ordinance at a public hearing on November 16, 2017 and has forwarded a recommendation of approval to Council. V. DISCUSSION: Although development agreements are voluntary, once made they are binding on the parties and their successors. Typical duration of a development agreement is 10 years - usually with a provision for extension upon agreement of both parties. Local jurisdictions must hold a public hearing prior to approving a development agreement and may only impose impact fees, dedications, mitigation measures and standards as authorized by other laws. Development agreements can be particularly useful within Pasco as a tool to outline responsibilities of developers in order for extension of City water/sewer service outside the corporate boundaries. The proposed ordinance would add a Chapter to the Pasco Municipal Code and establish provisions for the execution of development agreements. The ordinance outlines what is included in the term "development standard" and specifies that the required hearing be held before the Planning Commission. Staff believes this proposed ordinance will provide the ability to better manage development in complex circumstances - such as what may occur in the Broadmoor Master Plan area and for properties needing City utility services that are outside the City limits but with the Urban Growth Area.Council discussion is requested. If Council concurs with the contents of the draft ordinance, it will be brought back for Council action. Page 50 of 74 MEMORANDUM DATE:November 1, 2017 TO:Planning Commission FROM:Rick White, Director Community & Economic Development SUBJECT:Creating a New Chapter 26.50 “GMA Development Agreements” in the Pasco Municipal Code (MF# 2017-006) A 1995 State law enacted the Local Project Review Act - which was codified as 36.70B RCW. This addition to State law provides specific authority and direction for development agreements. A development agreement is a voluntary contract between a local jurisdiction and a person who owns or controls property within the jurisdiction. A development agreement details the obligations of both parties (jurisdiction and owner) and specifies the standards and conditions that will govern development of the property. A development agreement provides assurances to the developer that the development regulations that apply to a project will not change during the term of the agreement. An agreement can also provide certainty to a jurisdiction that certain regulations or conditions will be imposed on a project to better incorporate timing of improvements, fees or development standards. Although development agreements are voluntary, once made they are binding on the parties and their successors. Typical duration of a development agreement is 10 years - usually with a provision for extension upon agreement of both parties. Local jurisdictions must hold a public hearing prior to approving a development agreement and may only impose impact fees, dedications, mitigation measures and standards as authorized by other laws. Development agreements can be particularly useful within Pasco as a tool to outline responsibilities of developers in order for extension of City water/sewer service outside the corporate boundaries or for use in potentially complex development scenarios that may apply in the Broadmoor area or any other master planned situation. The proposed ordinance would add a Chapter to the Pasco Municipal Code and establish provisions for the execution of development agreements. The ordinance outlines what is included in the term "development standard" and specifies that the required hearing be held before the Planning Commission. Staff believes this proposed ordinance will provide the ability to better manage development in certain circumstances - particularly for properties needing City utility services that are outside the City limits but with the Urban Growth Area. Page 51 of 74 This item has been advertised for a public hearing for the Planning Commission meeting tonight. If the Commission is comfortable with making a recommendation to Council – the motion below would in order: MOTION: I move the Planning Commission recommend to City Council that a new Chapter in the Pasco Municipal Code 26.50 titled “GMA Development Agreements”, as contained in the November 16, 2017 staff report be adopted. If the Commission has questions or needs further discussion – then the item can be returned as appropriate. Page 52 of 74 PLANNING COMMISSION MINUTES 11/16/2017 C. Code Amendment Creating a new Chapter 26.50 “GMA Development Agreements” in the Pasco Municipal Code (MF# CA 2017-006) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Director, discussed the proposed code amendment creating a new Chapter 26.50 “GMA Development Agreements” in the Pasco Municipal Code. This item involves a tool for land use and was established by the State in 1995. A related this item to how concomitant agreements are used when zone changes occur and said that the GMA development agreements would be similar except they wouldn’t require a rezone application to have a development agreement. A development agreement is an agreement between a land owner and in this case, the City, which would establish terms of development and expectations. It would lock in development regulations for the period of time specified in the agreement and then it would have the benefit of having a public hearing which is proposed to be held by the Planning Commission. There would also be the ability to offer an extension to the timeframe if appropriate. It is simply a contract to develop in a certain way and lock in development regulations for a period of time. This tool is used in both Kennewick and Richland. It would be particularly helpful in Pasco as we are in the middle of working through a County plats that needs to have certain City responsibilities. Currently it is being handled through an awkward SEPA process. It would be particularly beneficial in instances where the City is able to extend water and sewer services to County properties not yet incorporated but inside the Urban Growth Area. Or, if a development is happening in a Master Plan Area, such as the Broadmoor Area, where things become complex and you want to lay out the expectations and the product you hope to achieve in a manner that’s more formal than just a zone change or guidance from the Comprehensive Plan. Chairman Cruz asked if the Planning Commission could have very broad terms to the contract. Mr. White responded that the Planning Commission could request anything in the contract that is not prohibited by law. Commissioner Roach asked if it would vary based on what type of development it was. Mr. White said that it would be very likely. Commissioner Roach asked if they would see the details of that text prior to the municipal code and asked for clarification on the timeframe to lock in the dates of the agreements. Mr. White said yes and they could be anything from 10 to 15 years or 5 years with the Page 53 of 74 option for an extension. Commissioner Bowers asked if the advantage would be to be able to take more things into account. Mr. White replied yes. For a typical subdivision there may not be much difference but it would help with more complex developments. Commissioner Alvarado asked if the benefit for the developer would be them knowing better how to plan and budget. Mr. White responded that they would have that benefit as well as knowing that they have that agreement for the given time and the criteria will not change for them in that timeframe. Chairman Cruz gave the example if someone had 1,000 acres and took 20 years to develop, things could change with City requirements but those changes would not impact the developer if they have an agreement. And the Planning Commission could work out whatever deal needed to protect both the City and the developer. Commissioner Mendez asked if the City wants a consistent vision why would this agreement be voluntary and not a requirement and why hasn’t this process been used in the past or currently. Mr. White said that it comes out of State law that it is not mandatory but provides the option for municipalities to use in their code. Commissioner Roach said she couldn’t find the allotted timeframe in the proposed code. Chairman Cruz said it would vary for each agreement unless the Commission wanted to place a cap. Mr. White replied that there was language addressed in the proposed code for timeframes and extensions. Chairman Cruz added that it also addressed that it would be valid up to the time of annexation so in the case it takes a long time for the City to annex, the agreement would still be enforceable. With no further questions or comments the public hearing was closed. Commissioner Portugal moved, seconded by Commissioner Bowers, to close the public hearing and recommend to City Council that a new Chapter in the Pasco Municipal Code 26.50 titled “GMA Development Agreements”, as contained in the November 16, 2017 staff report be adopted. The motion passed unanimously. Page 54 of 74 Page 55 of 74 Ordinance – Adopting PMC 26.50 - 1 ORDINANCE NO. ______ AN ORDINANCE of the City of Pasco, Washington, Creating Chapter 26.50 “GMA Development Agreements” WHEREAS, RCW 36.70B.170 authorizes local governments to enter into GMA Development Agreements with persons having ownership or control of real property within its jurisdiction; and WHEREAS, RCW 36.70B.170 authorizes local governments to enter into GMA Development Agreements for real property outside its boundaries as part of a proposed annexation or a service agreement; and WHEREAS, The City of Pasco City Council finds that the lack of certainty in the approval of development projects can result in a waste of public and private resources, escalate housing costs for consumers and discourage the commitment to comprehensive planning which would make maximum efficient use of resources at the least economic cost to the public and that assurance to a development project applicant that upon government approval the project may proceed in accordance with existing policies and regulations, and subject to conditions of approval, all as set forth in a GMA Development Agreement, will strengthen the public planning process, encourage private participation and comprehensive planning, and reduce the economic costs of development. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That a new Chapter 26.50 entitled GMA Development Agreements of the Pasco Municipal Code, shall be and hereby is adopted and shall read as follows: Chapter 26.50 GMA DEVELOPMENT AGREEMENTS Sections: 26.50.010 GMA Development Agreements Authorized. 26.50.020 Enforceability. 26.50.030 Recording. 26.50.040 Approval. 26.50.010 GMA DEVELOPMENT AGREEMENTS AUTHORIZED. (1) The City may enter into a GMA Development Agreement with a person having ownership or control of real property within its jurisdiction. The City may enter into a GMA Development Agreement for real property outside its boundaries as part of a proposed annexation or a utility service agreement. A GMA Development Agreement must set forth the Page 56 of 74 Ordinance – Adopting PMC 26.50 - 2 development standards and other provisions that shall apply to, govern and vest the development, use, and mitigation of the development of the real property for the duration specified in the agreement. A GMA Development Agreement shall be consistent with all applicable development regulations. (2) Sections 26.50.010 through 26.50.030 do not affect the validity of a contract rezone, concomitant agreement, annexation agreement, or other agreement in existence or adopted under separate authority, that includes some or all of the development standards provided in subsection (3) of this section. (3) For the purposes of this section, “development standards” include, but are not limited to: (a) Project elements such as permitted uses, residential densities, and nonresidential densities and intensities or building sizes; (b) The amount and payment of impact and mitigation fees imposed or agreed to in accordance with any applicable provisions of state law, any reimbursement provisions or other financial contributions by the property owner, inspection fees, or dedications; (c) Mitigation measures, development conditions, and other requirements under RCW 43.21C; (d) Design standards such as maximum heights, setbacks, drainage and water quality requirements, landscaping, and other development features; (e) Affordable housing; (f) Parks and open space preservation; (g) Phasing; (h) Review procedures and standards for implementing decisions; (i) A build-out or vesting period for applicable standards; and (j) Any other appropriate development requirement or procedure. (4) The execution of a GMA Development Agreement is a proper exercise of the City’s police power and contract authority. A GMA Development Agreement may obligate a party to fund or provide services, infrastructure, or other facilities. A GMA Development Agreement shall reserve authority to impose new or different regulations to the extent required by a serious threat to public health and safety. GMA Development Agreements within the City are limited to a ten-year timeframe. An extension of one to ten years may be exercised upon Page 57 of 74 Ordinance – Adopting PMC 26.50 - 3 mutual approval of both the developer and the City (PMC 26.50.050). GMA Development Agreements outside the City continue in effect at least until annexation. 26.50.020 ENFORCEABILITY. Unless amended or terminated, a GMA Development Agreement is enforceable during its term by a party to the agreement. A GMA Development Agreement and the development standards incorporated in the agreement govern during the term of the agreement, or for all or that part of the build-out period specified in the agreement, and may not be subject to an amendment to a zoning ordinance or development standard or regulation or a new zoning ordinance or development standard or regulation adopted after the effective date of the agreement. A permit or approval issued by the City after the execution of the GMA Development Agreement must be consistent with the terms of the GMA Development Agreement. 26.50.030 RECORDING. A GMA Development Agreement shall be recorded with the real property records of Franklin County. During the term of the GMA Development Agreement, the agreement is binding on the parties and their successors, including the City when it assumes jurisdiction through incorporation or annexation of the property covered by the GMA Development Agreement. 26.50.040 APPROVAL. The City shall only approve a GMA Development Agreement after a pre-decision open record public hearing. The public hearing shall be held before the Planning Commission whose recommendation and record shall be acted on by the City Council by Resolution approving or denying the GMA Development Agreement. Section 2. This Ordinance shall take full force and effect five (5) days after its approval, 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 _________________, 2018. __________________________________ Matt Watkins, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ __________________________________ Daniela Erickson, City Clerk Leland B. Kerr, City Attorney Page 58 of 74 AGENDA REPORT FOR: City Council December 26, 2017 TO: Dave Zabell, City Manager Workshop Meeting: 1/8/18 FROM: Dan Ford, City Engineer Public Works SUBJECT: Oregon Ave Corridor, No. 12002 - Supplement No. 7 with CH2M I. REFERENCE(S): Vicinity Map Supplemental Agreement No. 7 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion 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. CH2M Design Contract: Previous Agreement: $576,636 Supplement No. 7: $121,407 Adjusted Total Cost: $698,043 IV. HISTORY AND FACTS BRIEF: Oregon Avenue (SR397) Corridor Improvements project is a project that will incorporate transportation and pedestrian safety improvements to Oregon Avenue (SR397) from its connection with the interchange of I-182/SR12 on the north to 'A' Street on the south. The corridor supports a heavy freight load and has experienced a Page 59 of 74 significant number of crashes over the last several years, highlighting a need for these improvements. On November 19, 2012, City Council signed a Professional Services Agreement (PSA) with CH2M Hill in the amount of $350,000 to complete design of the Oregon Avenue Corridor in accordance with initially agreed scope and fees. Additional scope has been added to the design as the project progressed. A summary of supplemental agreements for the contract is listed below for your reference: 1. Supplement No. 1 was approved on January 21, 2014. It increased the PSA amount by $25,829 for a Traffic Noise Report and additional geotechnical field investigation, laboratory and analysis, for a total of $375,829. 2. Supplement No. 2 was approved on November 3, 2014. It increased the PSA amount by $36,663 for additional signal warrant analysis and design, additional stormwater design and coordination, additional environmental documentation associated with historic property inventories, and environmental documentation and engineering analysis associated with noise attenuation, for a total of $412,492. 3. Supplement No. 3 was approved on December 16, 2015. This was a no cost supplement; the agreement extended time for completion. The PSA remained at a total of $412,492. 4. Supplement No. 4 was approved on February 16, 2016. It increased the PSA amount by $164,144 for additional design services due to updated Franklin PUD illumination standards, intersection modifications, working with property owners, and the addition of bidding and construction support activities, for a total of $576,636. 5. Supplement No. 5 was approved in December of 2016. This was a no cost supplement; the agreement extended time for completion, primarily due to WSDOT delays in right-of-way acquisition. The PSA remained at a total of $576,636. 6. Supplement No. 6 was approved in December of 2017. This was a no cost supplement; the agreement extended time for completion, primarily due to WSDOT delays in right-of-way acquisition. The PSA remained at a total of $576,636. V. DISCUSSION: Supplement No. 7 proposes to amend the scope of the current agreement with CH2M. The attached Supplemental Agreement includes detailed information with additional scope for the project and brings the project plans, specifications and engineer's estimate to a bid ready status. The primary changes in the scope are as follows: • Additional roadway and traffic design services and coordination associated with traffic signal approval process and revisions. • Additional design services associated with the inclusion of an emergency signal at Fire Station 81. Page 60 of 74 • Additional design work due to Washington State Department of Transportation (WSDOT) requirements including channelization plans and design revisions. Due to the additional scope and changes for the betterment of the corridor, the total cost of services contracted with CH2M for the design of the corridor is increased from the currently apporved amount of $576,636 to $698,043, which continues to be within the acceptable standard for the cost of design and within available resources for design services. Page 61 of 74 OREGON AVE (SR 397) CORRIDOR IMPROVEMENTS - PHASE I VICINITY MAP References Project Phase 1 Project Phase 2 (Future) Proposed new Traffic Signal Upgrade to existing Traffic Signal Port of Pasco Schools EMS/Fire Station Commercial/Industrial Area Lewis St. Overpass N “A” Street Lewis Street `` Broadway Street Page 62 of 74 DOT Form 140-063 Revised 09/2005 Supplemental Agreement Number Organization and Address Phone: Original Agreement Number Project Number Execution Date Completion Date Project Title New Maximum Amount Payable Description of Work The Local Agency of desires to supplement the agreement entered in to with and executed on DQGLGHQWL¿HGDV$JUHHPHQW1R $OOSURYLVLRQVLQWKHEDVLFDJUHHPHQWUHPDLQLQHIIHFWH[FHSWDVH[SUHVVO\PRGL¿HGE\WKLVVXSSOHPHQW The changes to the agreement are described as follows: I Section 1, SCOPE OF WORK, is hereby changed to read: II 6HFWLRQ,97,0()25%(*,11,1*$1'&203/(7,21LVDPHQGHGWRFKDQJHWKHQXPEHURIFDOHQGDUGD\V for completion of the work to read: III 6HFWLRQ93$<0(17VKDOOEHDPHQGHGDVIROORZV DVVHWIRUWKLQWKHDWWDFKHG([KLELW$DQGE\WKLVUHIHUHQFHPDGHDSDUWRIWKLVVXSSOHPHQW If you concur with this supplement and agree to the changes as stated above, please sign in the Appropriate VSDFHVEHORZDQGUHWXUQWRWKLVRI¿FHIRU¿QDODFWLRQ By:By: Consultant Signature Approving Authority Signature Date City of Pasco, WA CH2M HILL, INC. 11/26/2012 STPUS-0397(008) See Exhibit A-1, Scope of Work, attached. 7 STPUS-0397(008) CH2M HILL, INC. 295 Bradley Boulevard, Suite 300, Richland, WA 99532 509.375.3444 STPUS-0397(008)11/26/2012 12/31/2018 Oregon Avenue (SR397) Corridor Traffic Study and Design $698,043.00 Additional management, design and right-of-way plan and description services. No Change-N/A The Total Maximum Amount Payable under the agreement is increased by $121,407 to $698,043 Mark A. Brower, P.E. Dave Zabell, City Manager Page 63 of 74 SUPPLEMENT #7, EXHIBIT A-1: SCOPE OF WORK REVISED: 12/22/2017 PAGE 1 OF 5 CITY OF PASCO, WASHINGTON OREGON AVENUE (SR-397) CORRIDOR TRAFFIC STUDY & DESIGN Supplement #7 – Supplemental Professional Services EXHIBIT A-1: SCOPE OF WORK INTRODUCTION  This  Supplemental  Agreement  No.  7  Scope  of  Work  modifies  the  scope  of  CH2M  HILL,  Inc.’s  (CONSULTANT) professional engineering services and compensation for the original agreement (dated  11/26/2012) to include:  Task 1:    Project  management  and  administrative  services  associated  with  the  extended  project  duration.  Original agreement assumed project duration thru December 2016.  Current project  anticipated to be complete in December, 2017.  Task 3:  Redesign  of  the  intersection  curb  returns  due  to  comments  from  Washington  State  Department of Transportation’s (WSDOT) Channelization Plan review.  Task 3:  Revision of the landscaped median at the north end of the project, including striping design,  storm drain design due to decisions to reduce construction costs.  Task 3:  Revising landscape drawings due to decisions to reduce construction costs.  Task 3:  Revising the Idaho Street intersection traffic signal due to lack of signal warrant.  The revised  design will still propose underground features including conduit, junction boxes, and pole  foundations.  Task 3:   Designing an emergency traffic signal at the Fires Station 81 location as a bid additive, including  updating plans, specifications, and estimate due to the addition of this bid additive.  Signing  and striping plans will also be updated to reflect this bid additive.  Task 3:   Revising  design  plans  and  right‐of‐way  plans  based  on discussions  and  negotiations  with  property owners between November 19, 2015 and the proposed bid date.  Task 3:   Cooperating with utility owners to determine relocations.  Task 6:   New  work  associated  with  developing  legal  descriptions for temporary construction  easements.  Task 9:  New task associated with developing channelization plans for WSDOT review and approval.  The CONSULTANT will provide the following services:   Page 64 of 74 SUPPLEMENT #7, EXHIBIT A-1: SCOPE OF WORK REVISED: 12/22/2017 PAGE 2 OF 5 TASK 1. PROJECT MANAGEMENT AND COORDINATION  Additional effort is needed to complete the following tasks:  The CONSULTANT will provide project management and administration services for the work elements  described in this document.  1.1. Contract Management  The CONSULTANT will provide services to manage the contract, manage project scope, schedule and  budget, amend professional agreements with subconsultants, prepare and process monthly invoicing,  progress reporting, and other internal management duties.  The CONSULTANT will provide the CITY with a monthly Progress Report, in writing, reporting on the  CONSULTANT’S progress and any known issues or anticipated changes in performing the Work.      Task 1.1 Assumptions:  Additional duration of 12 months (December 2016 to December 2017) Task 1.1 Deliverables:  Monthly Progress Reports (1 hard copy and .pdf electronic format)  1.2. Project Coordination  1.2.1. Correspondence and Meetings  The CONSULTANT will partner with the CITY to accomplish the Oregon Avenue (SR 397) Corridor  Traffic Study & Design.  Coordination of the project work elements will include an additional 8  months (assumed) of:   Coordination meetings with CITY to be conducted at appropriate intervals throughout the  project.   Regular  coordination  meetings  with  internal  CONSULTANT  team,  including  subconsultants to be conducted at appropriate intervals throughout the project.    Task 1.2 Assumptions:  Weekly Coordination Meetings with CITY via phone or in CONSULTANT offices up to start of  Phase I construction, then as needed.   CITY staff will conduct necessary meetings with Council and CONSULTANT will not attend.   Assumes two CONSULTANT staff will attend two (2) meetings with the CITY at CITY offices.  Task 1.2 Deliverables:  Meeting Agendas and Meeting Notes (.pdf electronic format)  Page 65 of 74 SUPPLEMENT #7, EXHIBIT A-1: SCOPE OF WORK REVISED: 12/22/2017 PAGE 3 OF 5 TASK 3. FINAL ROADWAY DESIGN  Additional effort is needed to complete the following:  3.1. Final Roadway Design Plans  3.1.1. Temporary Erosion & Sedimentation Control (TESC) Plans  TESC plans will be modified to reflect changes at intersections and the landscaped median.  3.1.2. Typical Sections  Typical sections will be modified to reflect changes in the landscaped median, pavement  section, and striping.  3.1.3. Site Preparation Plans  Site preparation plans will be updated to reflect changes to intersections and landscaped  median.  3.1.4. Drainage and Utility Plans  Drainage and utility plans will be updated to reflect changes to intersections and landscaped  median.  3.1.5. Roadway Paving Plans  Roadway paving plans will be updated to reflect changes to intersections and landscaped  median.  3.1.6. Intersection Layouts  Intersection layout plans will be updated to reflect changes to intersections due to WSDOT  requirements.  3.1.7. Traffic Signal and Illumination Plans  Traffic Signal and Illumination plans will be updated to reflect changes to the Idaho Street  traffic signal and intersection changes at A St, Broadway St, and Salt Lake St. due to WSDOT  requirements.  A new emergency signal will be designed at the Fire Station 81 location.  Plans, special  provisions, and estimates will be updated to include this emergency signal as a bid additive  to the project.   3.1.8. Signing and Pavement Marking Plans  Signing and pavement marking plans will be updated to reflect change in lane widths and  intersection changes due to WSDOT requirements. Signing and pavement markings sheets  will be modified to reflect the emergency signal bid additive.  Page 66 of 74 SUPPLEMENT #7, EXHIBIT A-1: SCOPE OF WORK REVISED: 12/22/2017 PAGE 4 OF 5 3.1.10. Landscaping & Irrigation Plans  Landscaping and irrigation plans will be modified to reflect reduced landscaping to reduce  construction costs.  Subtask 3.1 Assumptions:  Phase I and Phase II submittal milestones may not be coincident.  It is anticipated that Phase  I will be bid for 2017 construction, and Phase II will be bid no sooner than 2018.   Construction  traffic  control  plans  are  not  required  and  may  be handled  via  contract  specifications.   CITY to provide design and plans for backage roadway required due to access management  recommendations on Oregon Avenue.  CONSULTANT will incorporate CITY‐provided plans  in bid sets.   Landscape design plans for Phase II are accomplished in Task 4.   This task will require redesign of 52 curb returns and the adjacent pavement areas to  comply with ADA requirements.   Assumes 2 redesigns of the Broadway intersection signal: 1 due to WSDOT requirements,  another due to property owner acquisition negotiations.    Assumes additional modifications to the Salt Lake Street signal due to utility relocations.   Assumes additional modifications to the Salt Lake Street intersection plans due to recent  development in the northwest corner of the intersection.   Assumes custom designed curb ramps will be required at all but 4 of the curb ramps due to  lack of available space within which to fit a standard curb ramp layout.   Assumes changing the striping and lane widths to accommodate WSDOT comments in both  the typical sections and the signing and striping sheets.   CONSULTANT will cooperate with utility owners and the City to determine anticipated utility  relocations.  3.3. Summary of Quantities and Opinion of Cost  CONSULTANT will update opinions of cost for Phases I with revised unit prices based on current pricing  data.  Summary of quantities will be updated based on design changes in Phases I and II.  3.4. Plan Updates Based on Property Owner Discussions  CONSULTANT will update the design plans based on negotiations between the CITY and property  owners.      TASK 6.  RIGHT‐OF‐WAY PLANS  Task 6 scope of work is supplemented with the following task:   6.5 Temporary Construction Easement Legal Descriptions   The CONSULTANT will prepare legal descriptions for each temporary construction easement  shown on the right‐of‐way plans.  Legal descriptions will be prepared per WSDOT standards and  Page 67 of 74 SUPPLEMENT #7, EXHIBIT A-1: SCOPE OF WORK REVISED: 12/22/2017 PAGE 5 OF 5 requirements.  The CONSULTANT will resolve review comments from the CITY and WSDOT and  incorporate resolved comments into the final legal descriptions.  Subtask 6.5 Assumptions:  CITY will provide title reports, deeds, and other necessary material to prepare each legal  description.   The CITY and WSDOT will review the legal descriptions once prior to final submittal.    Task 6 scope of work is supplemented with the following task:  6.6 Plan Updates Based on Property Owner Discussions  CONSULTANT  will  update  the  right‐of‐way  plans  based  on  negotiations  between  the  CITY  and  property owners.    Add the following task to the scope of work:  TASK 9.  CHANNELIZATION PLANS  9.1 Channelization Plans  CONSULTANT will prepare channelization plans for the 16 intersections within the project limits.   Channelization plans will be prepared to WSDOT standards.  CONSULTANT will submit plans to  the CITY for review, and the CITY will submit the plans to WSDOT for review.  CONSULTANT will respond to review comments from the CITY and WSDOT.  Draft submittals will  be delivered electronically in PDF format, and final signed and sealed channelization plans will be  submitted on 24x36 inch Mylar.      Subtask 9.1 Assumptions:  2 Draft Submittals are anticipated.  The first draft will include AutoTurn movements, and  the second draft will not.   Redesign  of  the  intersections  based  on  recently  developed  WSDOT  requirements  is  anticipated.   This task assumes 2 redesigns of the horizontal layouts for all the intersections, based on  WSDOT direction and comments.     Subtask 9.1 Deliverables:  Draft Channelization Plans in PDF format.     Final Channelization Plans on 24x36 inch Mylar, signed and sealed.   Page 68 of 74 City of Pasco, Washington Exhibit E-1 Oregon Avenue (SR-397) Corridor Traffic Study & Design CH2M HILL Employee or Category Hrs. Direct Salary Cost 2 Project Manager 32 76.99$ $2,463.68 4 Sr. Traffic Engineer 101 44.44$ $4,488.44 5 Traffic Engineer 0 -$ $0.00 7 Transportation Engineer 394 47.29$ $18,632.26 8 Utilities/Stormwater Engineer 60 47.29$ $2,837.40 11 Jr. Civil/Structural Engineer 226 25.48$ $5,758.48 20 CADD Designer 612 21.63$ $13,237.56 21 Project Acct/Procurement 15 38.35$ $575.25 22 Administrative Assistant 1 28.78$ $28.78y Labor Hours (See Attached Labor Summary) 1,469 $49,304.25 Direct Salary Cost $49,304.25 Direct Salary Escalation Cost (estimated) N/A 0%$0.00 Total Direct Salary Cost $49,304.25 Overhead Cost @ 114.16% of Total Direct Salary Cost $56,285.73 Fixed Fee @ 30.0% of Total Direct Salary Cost $14,791.28 Total Overhead & Fixed Fee Cost $71,077.01 Total Labor Cost $120,381.26 Direct Expenses No. Each Cost Reports 0 $0.05 $0.00 Misc. copies 0 $0.05 $0.00 Reprographics 20 $40 $520.00 Mail/Deliveries/etc. 0 $15 $0.00 Mileage 0 Mi. @ $0.535 /Mile $0.00 Auto Rental/Gasoline 2 days @ $85 /day $170.00 Lodging 0 days @ $110 /day $0.00 Aerial Photographs 0 $3,000 $0.00 Travel Total (airfare, train, etc) 0 $500 $0.00 Equipment Rentals, EDM, GPS 0 $50 $0.00 Parking 0 $30 $0.00 Per Diem 0 days @ $75 /day $0.00 Drilling 0 $4,500.00 $0.00 Excavating/Test Pit 0 $2,000.00 $0.00 Materials Lab 0 $600.00 $0.00 Total Expenses $690.00 Subcontracts Bernardo | Wills Architects $336.21 Total Subcontracts $336.21 Total Lump Sum Price (Labor, Expenses, Subcontracts) $121,407 Page 1 of 6 Page 69 of 74 TaskCH2M HILL HoursCH2M HILL Labor SubcontractsExpense TotalOverall TotalTASK 1 - PROJECT MANAGEMENT AND COORDINATION59 $8,508 $0 $170 $8,678TASK 3 - FINAL ROADWAY DESIGN859 $71,047 $336 $0 $71,383TASK 6 - RIGHT-OF-WAY PLANS47 $4,352 $0 $400 $4,752TASK 9 - CHANNELIZATION PLANS504 $36,475 $0 $120 $36,595Total 1469 $120,381 $336 $690 $121,407Subs/Expenses BreakdownBernardo | Wills Architects 336$ CH2M HILL Expenses 690$ Total 1,026$ LABOR SUMMARY BY TASKPage 70 of 74 City of Pasco, Washington TASK 1 - PROJECT MANAGEMENT AND COORDINATION CH2M HILL Employee or Category Hrs.x Rate =Cost 1 Principal-In-Charge 0 -$ $0.00 2 Project Manager 27 76.99$ $2,078.73 3 Sr. Quality Control 0 -$ $0.00 4 Sr. Traffic Engineer 0 44.44$ $0.00 5 Traffic Engineer 0 -$ $0.00 6 Sr. Civil/Trans Engineer 0 61.68$ $0.00 7 Transportation Engineer 20 47.29$ $945.80 8 Utilities/Stormwater Engineer 0 47.29$ $0.00 9 Lead Geotech Engineer 0 -$ $0.00 10 Sr. Geotech Reviewer 0 -$ $0.00 11 Jr. Civil/Structural Engineer 0 25.48$ $0.00 12 Project Archaeologist 0 30.48$ $0.00 13 Senior Environmental Reviewer 0 -$ $0.00 14 Senior Environmental Scientist 0 56.14$ $0.00 15 Sr. Architectural Historian 0 60.24$ $0.00 16 NEPA Planner 0 65.84$ $0.00 17 Right-of Way Land Surveyor 0 45.80$ $0.00 18 Survey CADD Technician 0 43.61$ $0.00 19 Technical Editor 0 -$ $0.00 20 CADD Designer 0 21.63$ $0.00 21 Project Acct/Procurement 12 38.35$ $460.20 22 Administrative Assistant 0 28.78$ $0.00 23 Senior GIS Analyst 0 -$ $0.00 Total Hrs. 59 $3,484.73 Direct Salary Cost $3,484.73 Direct Salary Escalation Cost (estimated) NA 0%$0.00 Total Direct Salary Cost $3,484.73 Overhead Cost @ 114.16%of Direct Labor $3,978.17 Fixed Fee @ 30.0%of Direct Labor $1,045.42 Total Overhead & Fixed Fee Cost $5,023.59 Total Direct Salary Cost $8,508.32 Direct Expenses Reproduction Cost No. Each Cost Reports 0 $0.05 $0.00 Misc. copies 0 $0.05 $0.00 Reprographics 0 $40 $0.00 Mail/Deliveries/etc. 0 $15 $0.00 Mileage 0 Mi. @ $0.535 /Mile $0.00 Auto Rental/Gasoline 2 days @ $85 /day $170.00 Lodging 0 days @ $110 /day $0.00 Aerial Photographs 0 $0 $0.00 Travel Total (airfare, train, etc) 0 $0 $0.00 Equipment Rentals, EDM, GPS 0 $0 $0.00 Parking 0 $0 $0.00 PerDiem 0 days @ $150 /day $0.00 $170.00 Subcontracts Bernardo | Wills Architects 0 $0 $0.00 $0.00 Subtotal $170.00 Total $8,678.32 Page 71 of 74 City of Pasco, Washington TASK 3 - FINAL ROADWAY DESIGN CH2M HILL Employee or Category Hrs.x Rate =Cost 1 Principal-In-Charge 0 -$ $0.00 2 Project Manager 5 76.99$ $384.95 3 Sr. Quality Control 0 -$ $0.00 4 Sr. Traffic Engineer 101 44.44$ $4,488.44 5 Traffic Engineer 0 -$ $0.00 6 Sr. Civil/Trans Engineer 0 61.68$ $0.00 7 Transportation Engineer 225 47.29$ $10,640.25 8 Utilities/Stormwater Engineer 60 47.29$ $2,837.40 9 Lead Geotech Engineer 0 -$ $0.00 10 Sr. Geotech Reviewer 0 -$ $0.00 11 Jr. Civil/Structural Engineer 112 25.48$ $2,853.76 12 Project Archaeologist 0 30.48$ $0.00 13 Senior Environmental Reviewer 0 -$ $0.00 14 Senior Environmental Scientist 0 56.14$ $0.00 15 Sr. Architectural Historian 0 60.24$ $0.00 16 NEPA Planner 0 65.84$ $0.00 17 Right-of Way Land Surveyor 8 45.80$ $366.40 18 Survey CADD Technician 0 43.61$ $0.00 19 Technical Editor 0 -$ $0.00 20 CADD Designer 348 21.63$ $7,527.24 21 Project Acct/Procurement 0 38.35$ $0.00 22 Administrative Assistant 0 28.78$ $0.00 23 Senior GIS Analyst 0 -$ $0.00 Total Hrs. 859 $29,098.44 Direct Salary Cost $29,098.44 Direct Salary Escalation Cost (estimated) NA 0%$0.00 Total Direct Salary Cost $29,098.44 Overhead Cost @ 114.16%of Direct Labor $33,218.78 Fixed Fee @ 30.0%of Direct Labor $8,729.53 Total Overhead & Fixed Fee Cost $41,948.31 Total Direct Salary Cost $71,046.75 Direct Expenses Reproduction Cost No. Each Cost Reports 0 $0.05 $0.00 Misc. copies 0 $0.05 $0.00 Reprographics 0 $40 $0.00 Mail/Deliveries/etc. 0 $15 $0.00 Mileage 0 Mi. @ $0.535 /Mile $0.00 Auto Rental/Gasoline 0 days @ $85 /day $0.00 Lodging 0 days @ $110 /day $0.00 Aerial Photographs 0 $0 $0.00 Travel Total (airfare, train, etc) 0 $350 $0.00 Equipment Rentals, EDM, GPS 0 $0 $0.00 Parking 0 $0.00 PerDiem 0 days @ $150 /day $0.00 $0.00 Subcontracts Bernardo | Wills Architects 1 $336 $336.21 $336.21 Subtotal $336.21 Total $71,382.96 Page 72 of 74 City of Pasco, Washington TASK 6 - RIGHT-OF-WAY PLANS CH2M HILL Employee or Category Hrs.x Rate =Cost 1 Principal-In-Charge 0 -$ $0.00 2 Project Manager 0 76.99$ $0.00 3 Sr. Quality Control 0 -$ $0.00 4 Sr. Traffic Engineer 0 44.44$ $0.00 5 Traffic Engineer 0 -$ $0.00 6 Sr. Civil/Trans Engineer 0 61.68$ $0.00 7 Transportation Engineer 11 47.29$ $520.19 8 Utilities/Stormwater Engineer 0 47.29$ $0.00 9 Lead Geotech Engineer 0 -$ $0.00 10 Sr. Geotech Reviewer 0 -$ $0.00 11 Jr. Civil/Structural Engineer 0 25.48$ $0.00 12 Project Archaeologist 0 30.48$ $0.00 13 Senior Environmental Reviewer 0 -$ $0.00 14 Senior Environmental Scientist 0 56.14$ $0.00 15 Sr. Architectural Historian 0 60.24$ $0.00 16 NEPA Planner 0 65.84$ $0.00 17 Right-of Way Land Surveyor 20 45.80$ $916.00 18 Survey CADD Technician 0 43.61$ $0.00 19 Technical Editor 0 -$ $0.00 20 CADD Designer 16 21.63$ $346.08 21 Project Acct/Procurement 0 38.35$ $0.00 22 Administrative Assistant 0 28.78$ $0.00 23 Senior GIS Analyst 0 -$ $0.00 Total Hrs. 47 $1,782.27 Direct Salary Cost $1,782.27 Direct Salary Escalation Cost (estimated) NA 0%$0.00 Total Direct Salary Cost $1,782.27 Overhead Cost @ 114.16%of Direct Labor $2,034.64 Fixed Fee @ 30.0%of Direct Labor $534.68 Total Overhead & Fixed Fee Cost $2,569.32 Total Direct Salary Cost $4,351.59 Direct Expenses Reproduction Cost No. Each Cost Reports 0 $0.05 $0.00 Misc. copies 0 $0.05 $0.00 Reprographics 10 $40 $400.00 Mail/Deliveries/etc. 0 $15 $0.00 Mileage 0 Mi. @ $0.535 /Mile $0.00 Auto Rental/Gasoline 0 days @ $85 /day $0.00 Lodging 0 days @ $110 /day $0.00 Aerial Photographs 0 $0 $0.00 Travel Total (airfare, train, etc) 0 $0 $0.00 Equipment Rentals, EDM, GPS 0 $0 $0.00 Parking 0 $0 $0.00 PerDiem 0 days @ $0 /day $0.00 $400.00 Subcontracts Bernardo | Wills Architects 0 $0 $0.00 $0.00 Subtotal $400.00 Total $4,751.59 Page 73 of 74 City of Pasco, Washington Channelization Plans CH2M HILL Employee or Category Hrs.x Rate =Cost 1 Principal-In-Charge 0 -$ $0.00 2 Project Manager 0 76.99$ $0.00 3 Sr. Quality Control 0 -$ $0.00 4 Sr. Traffic Engineer 0 44.44$ $0.00 5 Traffic Engineer 0 -$ $0.00 6 Sr. Civil/Trans Engineer 0 61.68$ $0.00 7 Transportation Engineer 138 47.29$ $6,526.02 8 Utilities/Stormwater Engineer 0 47.29$ $0.00 9 Lead Geotech Engineer 0 -$ $0.00 10 Sr. Geotech Reviewer 0 -$ $0.00 11 Jr. Civil/Structural Engineer 114 25.48$ $2,904.72 12 Project Archaeologist 0 30.48$ $0.00 13 Senior Environmental Reviewer 0 -$ $0.00 14 Senior Environmental Scientist 0 56.14$ $0.00 15 Sr. Architectural Historian 0 60.24$ $0.00 16 NEPA Planner 0 65.84$ $0.00 17 Right-of Way Land Surveyor 0 45.80$ $0.00 18 Survey CADD Technician 0 43.61$ $0.00 19 Technical Editor 0 -$ $0.00 20 CADD Designer 248 21.63$ $5,364.24 21 Project Acct/Procurement 3 38.35$ $115.05 22 Administrative Assistant 1 28.78$ $28.78 23 Senior GIS Analyst 0 -$ $0.00 Total Hrs. 504 $14,938.81 Direct Salary Cost $14,938.81 Direct Salary Escalation Cost (estimated) NA 0%$0.00 Total Direct Salary Cost $14,938.81 Overhead Cost @ 114.16%of Direct Labor $17,054.15 Fixed Fee @ 30.0%of Direct Labor $4,481.64 Total Overhead & Fixed Fee Cost $21,535.79 Total Direct Salary Cost $36,474.60 Direct Expenses Reproduction Cost No. Each Cost Reports 0 $0.05 $0.00 Misc. copies 0 $0.05 $0.00 Reprographics 1 $120 $120.00 Mail/Deliveries/etc. 0 $15 $0.00 Mileage 0 Mi. @ $0.535 /Mile $0.00 Auto Rental/Gasoline 0 days @ $85 /day $0.00 Lodging 0 days @ $110 /day $0.00 Aerial Photographs 0 $0 $0.00 Travel Total (airfare, train, etc) 0 $0 $0.00 Equipment Rentals, EDM, GPS 0 $0 $0.00 Parking 0 $0 $0.00 PerDiem 0 days @ $150 /day $0.00 $120.00 Subcontracts Bernardo | Wills Architects 0 $0 $0.00 $0.00 Subtotal $120.00 Total $36,594.60 Page 74 of 74