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Home My WebLink About2018.10.22 Council Workshop PacketWorkshop Meeting AGENDA PASCO CITY COUNCIL 7:00 p.m. October 22, 2018 Page 1. CALL TO ORDER: 2. ROLL CALL: (a) Pledge of Allegiance 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: 3 - 4 (a) Downtown Pasco Development Authority Interviews Council to conduct brief interviews with Claudia Tapia, Edison Valerio and Jesus Ornelas. 5 - 40 (b) Presentation - Tri-Cities Air Quality Presentation by Robin Priddy, Control Officer/Executive Director at Benton Clean Air 41 - 131 (c) Presentation by Basin Disposal Inc. - Overview of Services, 2019 Rate Increase 132 - 146 (d) Presentation - 2017 Financial Audit 147 - 163 (e) Presentation - 16030 Chapel Hill Extension LID 150 164 - 169 (f) Annexation and Bonded Indebtedness 170 - 172 (g) Pricing of Real Property 173 - 189 (h) Pacific Power Franchise Extension 190 - 201 (i) 2019 Ad Valorem Tax Levy 5. MISCELLANEOUS COUNCIL DISCUSSION: 6. EXECUTIVE SESSION: Page 1 of 201 Workshop Meeting October 22, 2018 7. ADJOURNMENT. REMINDERS: 1. Monday, October 22, 4:00 p.m., Hanford Area Economic Investment Fund Advisory Committee Meeting – Ben Franklin Transit Main Conference Room (COUNCILMEMBER PETE SERRANO, Rep.). 2. Tuesday, October 23, 5:00 p.m., TRAC Advisory Board Meeting - TRAC (COUNCILMEMBER CRAIG MALONEY and COUNCIL MEMBER SAUL MARTINEZ). 3. Wednesday, October 24, 7:30 a.m., Visit Tri-Cities Board Meeting – 7130 W. Grandridge Blvd., Kennewick (COUNCILMEMBER PETE SERRANO, Rep.; COUNCILMEMBER CRAIG MALONEY, Alt.). 4. Thursday, October 25, 4:00 p.m., TRIDEC Board Meeting – 7130 W. Grandridge Blvd., Kennewick (COUNCILMEMBER DAVID MILNE, Rep.; COUNCILMEMBER CRAIG MALONEY. Alt.). 5. Friday, October 26, 7:30 a.m., Hanford Communities Governing Board Meeting – Richland City Council Chambers (COUNCILMEMBER SAUL MARTINEZ, Rep.; MAYOR MATT WATKINS, Alt.). 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. Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability. (Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad.) Page 2 of 201 AGENDA REPORT FOR: City Council October 16, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Stan Strebel, Deputy City Manager Executive SUBJECT: Downtown Pasco Development Authority Interviews I. REFERENCE(S): Applications (3) (Council only) II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Council to conduct brief interviews with Claudia Tapia, Edison Valerio and Jesus Ornelas. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The Downtown Pasco Development Authority (DPDA) undertakes and facilitates revitalization efforts in downtown Pasco and oversees the activities and efforts of the Authority's Executive Director. The DPDA is composed of seven members; terms are for four ye ars. The Board meets on the third Thursday of each month at 4:00pm. At the present time, there are two vacancies on the Board. 1. Position No. 3 (vacant) term expiration date of 12/20/20 2. Position No. 6 (vacant) term expiration date of 12/20/18 After review of all applications, the DPDA Board recommended the following for Council to interview: 1. Claudia Tapia 2. Edison Valerio 3. Jesus Ornelas V. DISCUSSION: Page 3 of 201 After conduct of interviews at the October 22 workshop meeting, it is proposed that appointments be made by the Mayor, subject to confirmation by the Council, at the October 29 special meeting. Page 4 of 201 AGENDA REPORT FOR: City Council October 15, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Steve Worley, Director Public Works SUBJECT: Presentation - Tri-Cities Air Quality I. REFERENCE(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation by Robin Priddy, Control Officer/Executive Director at Benton Clean Air III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Presentation agency mission, air quality efforts, the state and implications of air quality within the Tri-Cities region. Page 5 of 201 Ozone in the Tri Cities October 2018Page 6 of 201 Smog –Ground Level Ozone Page 7 of 201 Ozone in the Tri Cities -a brief history: •2013 –AirPact (model) showed potential for high ozone in Kennewick •2014 –Temporary Monitor on Kellogg; mobile monitoring •2015 –Permanent Monitor installed at BCAA offices; additional mobile monitoring •2015 –National Ambient Air Quality Standard for Ozone reduced to 70 ppb from 75 ppb •2016 –Precursor Study •2017 –Precursor Study Completed; Kennewick ozone values continue to be of concern •2018 –Community outreach Page 8 of 201 Why should we care about O3? •Ground level, not stratospheric (“good”) ozone. •Not released directly from sources. •Formed when certain gases react on hot days. •Health effects (next slide) •Chemistry is complex. Reducing wrong precursor can either increase ozone or yield little benefit. •Non Compliance with the Federal Standard may affect business and transportation projects Page 9 of 201 Affected Region Page 10 of 201 Local geography is part of the situation:Page 11 of 201 Area of interest: Benton Clean Air Agency Dept. of Ecology •Nuclear Program •Industrial Unit •Eastern Regional Office Benton County Walla Walla County Franklin County Page 12 of 201 Where does Ozone come from?Page 13 of 201 Page 14 of 201 Sources of NOx Page 15 of 201 Sources of Volatile Organic Compounds Page 16 of 201 Health Effects Page 17 of 201 Page 18 of 201 Page 19 of 201 Ozone Monitoring and Compliance with Federal Standard Page 20 of 201 August 13, 2015 (77 ppb) –mobile monitor Page 21 of 201 Ozone Design Value •Federal standards require the O3 “Design Value” to be less than 70ppb. •DV calculated as the average of the annual fourth highest maximum daily 8- hour average(MDA8). Kennewick O3 4th high MDA8, ppb # of days >70 ppb # days affected by wildfire smoke 2015 75 5 2016 68 2 2017 74 9 2 2018 74 *VERY PRELIMINARY 6 2 Latest DV 72 (71 without wildfire smoke)Page 22 of 201 0 10 20 30 40 50 60 70 80 90 100 Enumclaw Kennewick Issaquah Mt. Rainier Vancouver North Bend Spokane Cheney Turnbull Yelm Cheeka Peak Seattle Beacon Hill Custer Loomis Anacortes 4th Highest Values, 2015, 2016, 2017 2017 2016 2015 Page 23 of 201 0 10 20 30 40 50 60 70 80 Enumclaw Kennewick Issaquah Mt. Rainier Vancouver North Bend Spokane Cheney Turnbull Yelm Cheeka Peak Seattle Beacon Hill Custer Loomis Anacortes 2017 Design Value (average of 4th highest over three years)Page 24 of 201 Precursor Study –2016 Where are the precursors coming from? What is the meteorology? https://ecology.wa.gov/DOE/files/93/934a2f46-b000- 4f9a-837c-a286ccfa615e.pdf Page 25 of 201 Page 26 of 201 Main TCOPS findings •No single “smoking gun” •Precursor contribution and O3 production not always linear •No big contributions from afar •Airshed not VOC or NOx limited. •Modeling study needed to nail down specifics. •Moderate NOx and VOC cuts for now •Very crude estimate: 30% reduction -5ppb O3.Page 27 of 201 When does O3 build up? •Almost guaranteed in right conditions •Light north winds on hot days •Suggest constant & not sporadic precursor sources •Northerly flow dams up against Horse Heaven Hills, allowing O3 to “cook”Page 28 of 201 Page 29 of 201 How do you know vehicles contribute? •Emissions inventory •TCOPS: NOx spikes coincide with rush hour •Weekday/ weekend effect •Weekend O3 ~ 3.5ppb lower under comparable conditions Page 30 of 201 How much does industry contribute? •Ecology modeled NOx from large point sources •Though these had larger impacts nearby, they accounted for < 8% of the NOx measured by TCOPS mobile monitors •VOC and O3 impacts from industry and agriculture have not been assessed yet.Page 31 of 201 How much do wildfires contribute to O3? •Short answer: some, not much •Most days would have been high even without wildfire smoke •EPA has procedures for removing smoke-impacted O3 data from the record •But burden of proof is heavy when the contribution is small and hard to decipher Page 32 of 201 Where are we now, and what’s next?Page 33 of 201 Timeline Oct. 1, 2015 EPA finalizes 2015 Ozone NAAQS Oct. 1, 2016 October submission requested that Kennewick be declared “unclassifiable” as there are insufficient data to do otherwise Oct.1, 2017 EPA finalizes designations based on 2014-2016 DVs Kennewick considered unclassifiable (this is good news) May 2017 and forward If monitor readings continue to exceed the standard, there is potential that the area represented by the Kennewick monitor could be declared in non-attainment. (Benton, Franklin, Walla Walla) 2018 Community Outreach to begin to consider ramifications of non attainment and how we might develop solutions Local Entities explore strategies: Benton Franklin Council of Governments, Benton Clean Air, Department of Ecology, Benton Franklin Transit, Benton Franklin Health Department Oct. 1, 2020 •Ozone standard evaluated for revision Oct. 1, 2022 •(possible) Non-attainment designationPage 34 of 201 Affected Communities Regulated Sources Stationary sources of air pollution currently in a permit program: gas stations autobodies food processing chemical plants fertilizer plants Effects of Non-Attainment New Source Review Transportation Infrastructure Transportation projects and planning Transportation Conformity Economic Development Impact on manufacturing/production establishment and expansion Citizens Health impacts of ozone Sensitive populations most affected (elderly, young, cardiovascular conditions, allergies) General Quality of Life Transportation Mobile sources –passenger vehicles, trucking, rail shipping, barge/river shipping Transit Trip management resources Many potential impacts; many potential solutions; community effort.Page 35 of 201 Possible Solutions? •Trip reductions •Individual actions •Commute -rideshare, vanpool •Public Transit •Ozone Action Days Page 36 of 201 Benton Clean Air Agency 526 South Steptoe Street Kennewick, WA 99336 509-783-1304 www.bentoncleanair.org Robin Bresley Priddy, PE Page 37 of 201 Non Attainment New Source Review •Would apply to new or reconstructed sources of NOx and VOC •Lowest Achievable Emissions Rate (LAER) •The term "lowest achievable emission rate" means for any source, that rate of emissions which reflects: •the most stringent emission limitation which is contained in the implementation plan of any State for such class or category of source, unless the owner or operator of the proposed source demonstrates that such limitations are not achievable, or •the most stringent emission limitation which is achieved in practice by such class or category of source, whichever is more stringent. •Best Available Control Technology (BACT) is the current standard –it is much more flexible •Result of structured analysis on a case by case basis •Energy consumption, total source emission, regional environmental impact, and economic costs are taken into account.Page 38 of 201 Page 39 of 201 Page 40 of 201 AGENDA REPORT FOR: City Council October 16, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Stan Strebel, Deputy City Manager Executive SUBJECT: Presentation by Basin Disposal Inc. - Overview of Services, 2019 Rate Increase I. REFERENCE(S): Presentation Solid Waste Collection Agreement 11/16/2015 BDI Letter 7/18/2018 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Solid Waste Rates to Increase 4.4% 1/1/2019 IV. HISTORY AND FACTS BRIEF: BDI personnel will give a brief presentation on services in the City as well as discuss market conditions regarding recycled materials and solid waste disposal. This City has had a long relationship with Basin Disposal for handling the Cit y's solid waste. The agreement with BDI negotiated in 2015 is for a 15-year term with automatic 1-year extensions of the expiration date with each anniversary, unless notice of termination is given. The agreement sets the terms and classes of service and provides for the conditions of rate increases, which may occur annually. Basic rate increases are tied to the Consumer Price Index (80%) while other adjustments (i.e. tipping fees are disposal costs, etc.) due to outside costs,may also be requested. There is an annual rate adjustment cap of 5%. The proposed increase for 2019 is 4.4% (see 7/18/18 letter). BDI is responsible for Page 41 of 201 notification of customer rate adjustments. With the implementation of the rate increase, the cost for a standard 96 gallon container/disposal will rise from $19.69 per month to $20.58. The rate for for qualifying senior citizens will be $10.28, up from $9.83. V. DISCUSSION: Page 42 of 201 Basin Disposal Inc. Contract and Service Overview Darrick Dietrich –Basin Disposal Inc.Page 43 of 201 Basin Disposal Inc. -History Where we came from Est. 1941 in Pasco Local Family owned for 3rd Generation Who we are Darrick Dietrich –President Jaime Diaz –Route Manager Booker Nagely –Ops Manager Susan Myers –CS Manager Dave Atwell –Pricing Manager Page 44 of 201 Equipment Clean Modern Fleet Natural Gas Trucks 40% of applicable trucks are natural gas Curroto-Can https://www.youtube.com/watch?v=yBNNBCESOjQ Upcoming Advancements Fleet and Routing Software Goal: Maximize efficiency to Minimize Service Costs Page 45 of 201 Services Residential Commercial Industrial Recycle Page 46 of 201 Recycling -Market Disruption U.S Generated Recyclables Goal of increasing the quantity of the material recycled Chinese Market Goal of increasing the quality of the material recycled Conflicting goals Market disruption Summary Video https://youtu.be/Kqpt1Sti9NM Disposal Cost/Ton MSW: $46.25 RCY: $133.25 Page 47 of 201 Recycle Container Locations Page 48 of 201 Recycle Container Locations Virgie Robinson Elementary at 125 S Wehe Ave Grange Hall at Rd. 64 and Court St. Stevens Middle School at 1120 N 22nd Ave On the corner of 5th & Octave St Soccer Field at Court St. and Rd. 48 Grigg’s Dept. Store at Columbia and 9th St. Ochoa Middle School at 1801 E. Sheppard Community U. U. Church at 2819 Sylvester St. McLoughlin School at Argent and Rd. 84Page 49 of 201 Unlimited Residential Pickup Service No Charge for Extras Bag, Boxed, Bundled Bulky Items: OK Couches, Appliances, Refrigerators Freon disposal extra Minimal Charge for 2nd 96gal cart Coupon to Transfer StationPage 50 of 201 Disposal Cycle Drives Cost Curbside Pickup Transfer Station Transport Landfill As of 2018 PASCO SEATTLE ROUND TRIP TO DISPOSAL SITE (MILES)140 600 Disposal Cost per Ton $46.25 $134.59 Collection 96gal Cart $19.69 $111.45 Extra Bag/Bundle $0 $11.55 4yd Container $197.39 $540.38Page 51 of 201 Pasco: Customers Served 1 1.5 2 2015 2016 2017 2018ThousandsCommercial/Industrial COMMERCIAL INDUSTRIAL 16 17 18 ThousandsResidential 2017 to 2018 2015 to 2018 Residential 2.7%7.6% Commercial 6.4%7.9% Industrial -6.1%23.3% Annual Change in Customers Served Page 52 of 201 Contractual Rate Adjustments External Triggers Annual Adjustments Tied to Consumer Price Index (CPI) Periodic Adjustments Pass Through Expenses Disposal Fees Fuel Surcharge Internal Triggers General Rate Case Weighted Cost of Disposal (WACOD)Page 53 of 201 2019 Rate Adjustment New Rates Effective January 1st, 2019 Overall Weighted Average Rate Change: 4.44% Increase Service Component (CPI): 2.56% Increase Disposal Component (Disposal Fees): 2.05% Increase on Average Transfer Station Disposal Fee: 5.95% Increase Page 54 of 201 2019 Rate Adjustment (Con’t) Service 2018 2019 Residential: 96 gallon Cart –1 x Per Week $19.69 $20.58 Residential: 96 gallon Cart –Each Additional Cart $2.03 $2.12 Commercial: 4 Yard Container –1 x Per Week $197.39 $206.36 Industrial:Disposal Fee Per Ton $46.25 $49.00Page 55 of 201 On the Horizon Direction of the Recycling Program Revised Menu of Acceptable Recycle Materials Public education campaign Additional Neighborhood Recycling Center Locations Page 56 of 201 Questions?Page 57 of 201 COMPREHENSIVE SOLID WASTE COLLECTION AGREEMENT City of Pasco and Basin Disposal,Inc. November 16,2015 Page 58 of 201 Table of Contents RECITALS,AGREEMENT,DEFINITIONS ............................................................... ... ..1 AMENDMENT AND REPLACEMENT OF THE ORIGINAL AGREEMENT ..............1 TERM;AUTOMATIC EXTENSIONS ...................................................................... ...... ..1 3.1. 3.2.Automatic Extensions ............................................................... ....................... .. SCOPE OF WORK ................................................................. .......................................... ..2 4.1.General Terms and Conditions ................................................................... ..... ..2 4.2.City Service Area .......................................................... ................................... ..2 4.3.Sole and Exclusive Solid Waste Service Provider ...2 4.4.Annexation .............................................................. ......................................... ..3 4.5.Unsafe Conditions at Pick-Up Locations ...........................................................4 4.6.Hours/Days of Operation ............................................................. .................... ..4 4.7.Employee Conduct .................................................................. ......................... ..4 4.8.Disabled Persons Service.......5 4.9.Holiday Schedules .................................................................. ......................... ..5 4.10.Inclement Weather and Other Service Disruptions ...........................................5 4.11.Suspending Collection from Problem Customers ..............................................5 4.12.Missed Collections .................................................................. ......................... ..6 4.13.Schedule of Solid Waste Collection .............. 4.14.Required Equipment and Signs on Vehicles;Maintenance of Vehicles and Equipment ............................................... 4.15.Residential Carts and Containers Inventory ......................................................7 4.16.Ownership of Equipment ......................................................................... ........ ..7 4.17.Spillage ................................................................. ........................................... ..7 4.18.Disruption Due to Construction .................................................................. ..... ..7 4.19.Site Planning Assistance ............................8 4.20.Safeguarding Public and Private Property .........................................................8 4.21.Company Name .......................................................... ..................................... ..8 4.22.Coordination between City and Contractor .......................................................8 4.23.Disposal Restrictions and Requirements ...........................................................9 4.24.Disposal Site for Solid Waste .................9 4.25.Adjustment of Service Level for Certain Customers .........................................9 Comprehensive Solid Waste Collection Agreement Page ii Page 59 of 201 4.26.Violation of Ordinance .............................................................. ...................... ..9 4.27.Public Information .................................................................. ......................... ..9 4.28.Compaction of Solid Waste ...................................................................... ..... ..l0 SOLID WASTE SERVICE .................................................................... ........................ ..10 5.1 .Residential Service .................................................................. ....................... ..10 5.1 .1.Residential Customer Solid Waste Service ......................................................10 5.1.2.Residential Carts .................................................................... ........................ ..10 5.1.3.Senior,Low Income Discount .....1l 5.1.4.Household Hazardous Waste Program ............................................................13 5 .2.Commercial Service .............................................................................. ......... ..13 5.2.1.Commercial Customer Solid Waste Service ....................................................13 5.2.2.Commercial Containers .......................................................................... ....... ..14 5.2.2.1 Container Types .................................................................... ......................... ..14 5.2.2.2.General Terms and Conditions Applicable to Commercial Containers ...........14 5.2.2.3.Additional Fees ..................................................................... ........ ......15 5.2.2.4.Customer-Owned Drop-Box Containers ..........................................................15 5.3.Temporary Solid Waste Service Plans .............................................................16 5.4.Solid Waste Service to City Properties and Facilities .....................................16 5.5.Recyclable Materials and Green Waste ...........................................................17 5.6.Miscellaneous Solid Waste Services ...............................................................17 5.7.Customer Service 18 5.7.1.Customer Service Of?ce .........................................18 5.7.2.Complaints ......................................................................... ............................ ..18 5.7.3.Emergency Contact ............................................................................... ......... ..19 5.8.Reports ............................................................................ ............................... ..l9 COMPENSATION ............................................................................ ............................. ..19 6.1.Basis for Determination of Solid Waste Service Rates ...................................l9 6.2.Compensation for Solid Waste Services .................19 6.3.Adjustment to Solid Waste Service Rates .......................................................20 6.3.1.Annual Rate Adjustment ............................................................. ................... ..20 6.3.2.Adjustments to Tipping Fees and Disposal Fees .............................................20 6.3.3.Fuel Expense Adjustments ........................................................... .................. ..21 6.3.4.Annual Rate Adjustment Cap .................................................................... .... ..21 6.3.5.Solid Waste Disposal Cost Adjustment ...........................................................22 Comprehensive Solid Waste Collection Agreement Page iii Page 60 of 201 10. 6.3.6.Tax Additive ..................................................... ............ .....22 6.3.7.Other Modi?cations ........................................... ........................................... . .. 6.3.8.Changes in Impositions or Other Laws ......................................... ................. ..23 6.3 .9.Termination by Contractor ....................................... ...................................... ..23 6.4.Billing for Solid Waste Services;Delinquent Accounts ..................................23 6.5.Delinquent Accounts and other Customer Defaults....... PERFORMANCE FEES,DEFAULT AND REMEDIES .......................................... .... .. 7.1.Performance Fees ............................................ ............................................ ... ..24 7.2.Default and Remedies .......................................... .......................................... ..25 NOTICES ............................................. ............................................. .............................. ..25 INSURANCE AND BOND REQUIREMENTS..26 9.1.General Insurance Requirement ......................................... ............................ ..26 9.2.Minimum Scope of Insurance .......................................... .............................. ..26 9.3.Minimum Amounts of Insurance ........................................ ........................... ..26 9.4.Deductibles and Self-Insured Retentions ........................................ ............... ..27 9.5.Other Insurance Provisions ............................. 9.6.Acceptability of Insurers .............................................. .................................. .. 9.7.Verification of Coverage ........................................ ........................................ ..27 9.8.Subcontractors.......................................... .......................................... ............ ..27 9.9.Performance Bond/Surety.. GENERAL TERMS ........................................................ .......... .. 10.1.Indemni?cation.............................................. .............................................. .. .. 10.1.1.Indemnify and Hold Harmless .......................................... ............................. ..28 10.1.2.Notice to Contractor;Defense .......................................... ............................. ..28 10.1.3.Industrial Insurance Immunity Waiver 10.2.Transfer of the Contract ......................................... ............................. .. 10.2.1.Assignments,Subcontracts and Delegations ...................................... ........... ..29 10.2.2.Changes in Control ............................................ ............................................ ..29 10.3.Legal .......................................... .......................................... .......................... ..30 10.3.1 Laws to GovemNenue 10.3.2 Attorney Fees .......................................... .......................................... ............. ..30 10.3.3 Arbitration ............................................ ............................................ .............. ..30 10.4.Compliance With Laws ............................................... ................................... ..30 10.5.Non-Discrimination........................................... ........................................... . ..30 Comprehensive Solid Waste Collection Agreement Page iv Page 61 of 201 10.6. 10.7. 10.8. 10.9. 10.10. 10.10.] 10.10.2 10.11. 10.12. 10.13. Permits and Licenses..............................31 Relationship of Parties ........................31 Bankruptcy ....................................................................................... .............. ..31 Right to Renegotiate or Amend .................................................................. ... ..31 Force Majeure .................................................................................... ............ ,.32 Force Majeure Events ............................................................................ ........ ..31 Force Majeure Occurrences of Non-Default ....................................................32 Illegal Provisions/Severability ........................................................ ............... ..32 ....32 Entirety ........................................................................................... ................ ..33 Comprehensive Solid Waste Collection Agreement Page V Page 62 of 201 COMPREHENSIVE SOLID WASTE COLLECTION AGREEMENT This Comprehensive Solid Waste Collection Agreement (“Agreement”)is made and entered into this 16 day of November,2015 (“Effective Date”),by and between the City of Pasco,a Washington municipal corporation (the “City”),and Basin Disposal,Inc.,a Washington corporation (“Contractor”). RECITALS A.Contractor desires to provide,and has the experience,resources and expertise necessary,to perform solid waste collection services. B.Contractor currently provides solid waste collection service to the City under an agreement executed on March 15,1993 (as amended,the “Original Agreement”),which will expire not sooner than December 31,2022. C.The City and Contractor desire to amend and replace the Original Agreement in its entirety to recognize,among other things,the extensive,on-going capital investment made by Contractor to achieve and pass on to customers the cost savings from the ef?ciencies gained thereby. NOW,THEREFORE,in consideration of the mutual covenants,agreements and promises herein contained,the City and Contractor do hereby agree as follows: AGREEMENT 1.DEFINITIONS Capitalized terms used in this Agreement shall have the meanings given them in Exhibit A. 2.AMENDMENT AND REPLACEMENT OF THE ORIGINAL AGREEMENT Effective as of the Commencement Date,the Original Agreement is hereby amended and replaced in its entirety by this Agreement. 3.TERM;AUTOMATIC EXTENSIONS 3.1.Term The initial term of this Agreement (“Term”)shall be for fifteen (15)years, commencing on January 1,2016 (the “Commencement Date”),and expiring on the day before the sixteenth (16th)armiversary of the Commencement Date (the “Expiration Date”). Comprehensive Solid Waste Collection Agreement Page 1 Page 63 of 201 3.2.Automatic Extensions On each anniversary of the Commencement Date,the Expiration Date shall automatically be extended by one (1)year unless either party has given ninety (90) days written notice of termination to the other party,in which case the Agreement shall terminate on the Expiration Date in effect as of the date of such written notice of termination. SCOPE OF WORK 4.1.General Terms and Conditions Contractor shall collect,transport and dispose of all Solid Waste,Household Hazardous Waste and any other materials herein authorized,from each and every Customer within the Service Area pursuant to the tenns and conditions of this Agreement. 4.2.City Service Area Contractor shall provide all of the services described in this Agreement to the entire City Service Area. 4.3.Sole and Exclusive Solid Waste Service Provider During the Term of this Agreement,Contractor shall be the sole and exclusive provider to manage,collect,transport and dispose of Solid Waste and Household Hazardous Waste,and,as applicable,to manage,collect,transport and process Recyclable Materials and Green Waste subject to a separate collection service requested by the City or the jurisdiction of the WUTC upon adoption of an appropriate jurisdictional overlay granting such authority to the WUTC,all as more particularly described in Section 5.5.herein,and any other materials authorized for collection pursuant hereto,within the City Service Area.When requested by Contractor,the City shall seek to enforce the rights the City has granted to Contractor hereunder;however,the City shall not be obligated to instigate litigation to protect the right of Contractor.Contractor may independently enforce its rights under this Agreement against third party violators,including but not limited to seeking injunctive relief,and the City shall use good faith efforts to cooperate in such enforcement actions brought by Contractor (without obligating the City to join any such litigation).Such efforts may include but not be limited to cease and desist letters, assistance with documenting violations and other activities.Notwithstanding the foregoing,the City shall enforce its municipal code in the ordinary course against any third parties providing unauthorized Solid Waste service. Any material discarded by a Customer for which it pays to collect,process and/or dispose of the material shall constitute “Solid Waste”subject to all terms and conditions of this Agreement.This Agreement will not apply to Solid Waste,Recyclable Materials,Green Waste,Household Hazardous Waste and Agricultural Processed Waste self—hauledby the generator,or Green Waste generated and hauled by private landscaping services. Comprehensive Solid Waste Collection Agreement Page 2 Page 64 of 201 4.4.Annexation If additional territory is added to the City through annexation or other means, Contractor shall make collections in such annexed areas in accordance with the provisions of this Agreement at the unit prices set forth in this Agreement,provided however,the remaining Term of this Agreement shall not be less than ??een (15)years from the effective date of such annexation.If the City has given Contractor a notice of termination of this Agreement prior to such annexation,the annexed area shall not be added to this Agreement except with the written consent of Contractor,which may be withheld at the sole discretion of Contractor.If the armexed area is added to this Agreement,the parties shall execute an amendment to this Agreement consistent with the provisions of this section,including the replacement of Exhibit B depicting the City Service Area.If Contractor possesses a WUTC certi?cate or other franchise for Solid Waste collection in the annexed area at the time of annexation,the amendment of this Agreement to add the annexation area to the City Service Area shall be in lieu of the grant of a franchise pursuant to RCW 3513280 or RCW 35.A.l4.900,as applicable, and Contractor shall waive and release its right to claim any damages or compensation from the City arising out of the cancellation of any pre-existing permit,certi?cate or franchise held by Contractor prior to annexation,and ?rrther speci?cally waives the right to receive any additional compensation or any rights of collection in the newly- annexed territory beyond what is provided herein.Subject to the provisions hereof, Contractor acknowledges that its certi?cate applicable to those future armexation areas shall be cancelled effective the date of annexation by the City. If a party other than Contractor holds the WUTC certi?cate for any such future annexed territory,the City shall work with such party in good faith using commercially reasonable efforts to provide for the timely termination of such party's right to provide Solid Waste collection service to the subject armexation area.Upon termination of such party’s right to provide Solid Waste service to said annexation area,the parties shall cause the subject annexation area to be added to the City Service Area as provided above and subject to the terms and conditions of this Agreement.The City will indemnify,hold harmless and defend Contractor from any and all claims,actions, suits,liabilities,losses,costs,expenses and damages,including costs and attorney fees, asserted by such parties providing solid waste collection service arising from Contractor’s service in such armexed territory pursuant to this Agreement. The City acknowledges that Contractor shall require a reasonable amount of time to secure the necessary equipment,including but not limited to vehicles,Residential Carts and Containers,to service the annexed area,and shall not penalize Contractor for reasonable delays in the provision of services to annexed areas covered by this Agreement due to procurement delays that are not within the commercially reasonable control of Contractor.Customers within the annexed area shall receive the Residential Carts and Containers described herein in accordance with the provisions of this Agreement.In the event that an annexed area is being serviced with Residential Carts and Containers different from the City’s program,Contractor shall be responsible for timely Customer notification and removal of the existing Residential Carts and Comprehensive Solid Waste Collection Agreement Page 3 Page 65 of 201 Containers and delivery of appropriate Residential Carts and Containers within a reasonable time. 4.5.Unsafe Conditions at Pick—UpLocations If,in Contractor’s commercially reasonable discretion,a Customer is located in an area that does not permit safe access,turn—aroundor clearance for Contractor’s vehicles, Contractor shall provide Solid Waste service to such Customer provided the Customer sets out its materials adjacent to the nearest Public Street or Private Road allowing such safe access and Contractor is provided with reasonable advance notice of such location. Contractor shall use commercially reasonable efforts to work with such Customer to determine a safe location in compliance with applicable law.If Contractor in its commercially reasonable discretion determines that a Private Road cannot be safely negotiated or that providing drive-in service for Residential Customers shall be impractical due to distance or unsafe conditions,Contractor and the City shall evaluate the on-site conditions and make a determination of the best approach for providing Solid Waste service to the affected Residential Customers.Contractor and the City shall present feasible service options to the Customers concerning the nearest safe and mutually convenient pick-up location.If Contractor believes that its vehicles shall cause damage to a Private Road in the ordinary course of operation,Contractor may withhold Solid Waste service from the respective Customers until such Customers provide a damage waiver agreement to Contractor. 4.6.Hours/Days of Operation Contractor shall make Solid Waste collections from Single-Family Residences,Multi- Family Complexes and Mixed-Use Buildings on Monday through Friday between the hours of 7:00 a.m.and 6:00 pm.,provided,however,that the City may authorize from time to time temporary extensions or written exemptions of the collection period to accommodate the special needs of Customers,provided further however,that Contractor may conduct from time to time Solid Waste collections on Saturdays to the extent necessary to make up missed collections.Contractor shall make Solid Waste collections from non-Residential Commercial Customers on Monday through Friday between the hours of 5:00 a.m.and 6:00 p.m.provided;however,the City shall have the authority to notify the Contractor of which Commercial areas are located near Residential zoned areas,and shall be subject to the Residential collection hours. 4.7.Employee Conduct Contractor shall require its employees at all times on routes to be courteous,refrain from making loud,inappropriate or obscene language,exercise due care,perfomi their work ef?ciently and expeditiously,and avoid damage to public or private property.Contractor shall further require its employees to use only that portion of private property reasonably necessary to complete their duties,and to the extent reasonably possible,stay within regular pedestrian walkways and paths and avoid crossing ?ower beds and hedges, Contractor’s employees shall wear reasonably clean and presentable clothing while on Comprehensive Solid Waste Collection Agreement Page 4 Page 66 of 201 their routes.If the City gives written notice to Contractor of any employee of Contractor failing to comply with the above requirements,Contractor shall use commercially reasonable efforts to remedy the issue as soon as possible,including temporarily or pennanently removing such employee from all further performance of the work described in this Agreement. 4.8.Disabled Persons Service Contractor shall provide,at no additional expense,carry-out service of Solid Waste to those Residential Customers that suffer from a documented disability that prevents them from placing a Residential Cart at the Curb.The Residential Customer shall provide Contractor with veri?able information and complete the appropriate documentation prior to such service being provided.Contractor’s criteria for carry-out service shall comply with all local,state and federal regulations,and shall be subject to the City’s review and approval prior to program implementation. 4.9.Holiday Schedules Contractor shall provide regular Residential and Commercial collection services on all weekdays,Monday through Friday inclusive,regardless of any holidays that may be observed.Drop—BoxContainer collection service shall not be performed on New Year’s Day,Memorial Day,Fourth of July,Labor Day,Thanksgiving Day and Christmas. 4.10.Inclement Weather and Other Service Disruptions If,in Contractor’s commercially reasonable discretion,weather or other route conditions pose a danger to the public,Contractor’s employees or equipment,Contractor shall provide Solid Waste service only to those portions of the City Service Area that do not pose such a danger.Contractor shall provide the City within a reasonable time after such event Contractor’s plans to make up missed Solid Waste collections.Unless the City gives Contractor written notice of the City’s objections to such plans,Contractor may perform limited Solid Waste collection services after 6:00 pm and/or on Saturdays following disruptions in order to make up missed collections. 4.11.Suspending Collection from Problem Customers The City and Contractor acknowledge that,from time to time,some Customers may cause disruptions or conflicts that make continued service to that Customer unreasonable. Those disruptions or con?icts may include,but not be limited to,repeated damage to Residential Carts or Containers,repeated refusal to position Residential Carts or Containers properly,repeated suspect claims of timely set-out followed by demands for return collection at no charge,and repeated claims of damage to the Customer’s property. Contractor shall make every reasonable effort to provide service to those problem Customers.However,Contractor may deny or discontinue service to a problem Customer if reasonable efforts to accommodate the Customer and to provide services fail. If the Customer submits a written letter to the City appealing Contractor’s decision,the Comprehensive Solid Waste Collection Agreement Page 5 Page 67 of 201 City may,in its sole discretion,intervene and attempt to mediate a resolution in the dispute.The City may also require the denial or discontinuance of service to any Customer who is abusing the service or is determined to be ineligible. 4.12.Missed Collections If Contractor fails to collect Solid Waste from a Customer without permissible excuse therefore,Contractor shall provide such service to the Customer within a reasonable time, but in no event later than 6:00 P.M.of the business day following Contractor’s receipt of noti?cation of the missed pick—up.Contractor shall maintain a record of all missed collections reported by Customers (whether reported by telephone or e—mail)and Contractor’s corrective action.If a Residential Cart or Container is set out inappropriately,improperly prepared or contaminated with unacceptable Solid Waste, Biomedical Waste or Hazardous Waste,Contractor shall not be obligated to collect the materials from such Residential Cart or Container.Contractor shall place a noti?cation tag on such Residential Cart or Container that identi?es the speci?c reason for not collecting the Solid Waste,and maintain a record of such missed collections.If Contractor is requested by the Customer to make a return trip due to no fault of Contractor,Contractor shall be permitted to charge the Customer an additional fee for this service at the rate speci?ed in the rate schedule attached hereto as Exhibit C (“Rate Schedule”). 4.13.Schedule of Solid Waste Collection Contractor shall perform Solid Waste services for each respective Residential Customer pursuant to a regmlar schedule on the same day and as close to a consistent time as possible;Contractor may vary,in its discretion,the collection routes and schedules for Commercial Customers.Contractor shall provide dispatch service and equipment capability to collect full Drop-Box Containers no later than the second (2nd)business day after the Customer’s request.Contractor shall indicate,on a detailed map acceptable to the City,the day of the week Solid Waste shall be collected from each Residential Customer.Contractor may change the day of collection from time to time by giving the City and the affected Residential Customers at least ?fteen (15)days prior written notice of the different collection date. 4.14.Required Equipment and Signs on Vehicles;Maintenance of Vehicles and Equipment Contractor shall cause each of its vehicles to display the vehicle’s inventory number and customer service telephone number in lettering not less than four (4)inches high and clearly visible from a minimum distance of twenty (20)feet,together with appropriate safety markings,including all highway lighting,?ashing and warning lights,clearance lights,and warning ?ags in accordance with applicable laws.Contractor shall equip each route,service and supervisory vehicle with properly licensed two-way communication equipment capable of communication throughout the entire City Service Area with a base station maintained by Contractor.In addition,Contraction shall cause all vehicles to Comprehensive Solid Waste Collection Agreement Page 6 Page 68 of 201 carry regularly-maintained and fully—functionalspill kits,including absorbent pads or granules,containment booms,storm drain covers,sweepers and other similar materials suf?cient to contain,control and,for minor events,appropriately clean-up spillage or release of wind-blown materials,litter,or leaks of ?uids or leachate from the vehicle. Spill kits shall also include Contractor’s spill response procedure,which procedure shall be developed as provided in Section 4.17. Contractor shall cause all vehicles and equipment to be maintained in good operating condition at all times.In addition,Contractor shall maintain its vehicles to ensure that no liquid wastes (such as Solid Waste leachate)or oils (lubricating,hydraulic or fuel)to be discharged from the vehicles except to appropriate facilities.Contractor shall regularly clean and wash thoroughly all vehicles used in the collection of Solid Waste.Contractor shall cause its vehicles to be repainted from time to time as needed to maintain a clean and professional appearance. 4.15.ResidentialCarts and Containers Inventory Contractor shall procure and maintain a suf?cient quantity of Residential Carts and Containers to service the City’s Customer base,including for seasonal and economic variations in the demand for Residential Carts and Containers. 4.16.Ownership of Equipment All vehicles,facilities and property used in performance of work under this Agreement shall be owned or leased by Contractor.The City shall have no obligation to provide equipment,facilities or personnel in connection with Contractor’s duties hereunder. 4.17.Spillage Contractor shall cause any blowing or spillage of Solid Waste,or leachate from Contractor’s vehicles,to be cleaned up immediately by Contractor’s employees.For any spill of leachate requiring more equipment or treatment other than the spill kits carried on a collection vehicle,Contractor shall promptly notify the City of such event.Contractor shall develop and submit to the City for its review a spill response procedure,and shall incorporate any commercially reasonable comments that the City provides.The spill response procedure shall include a list of emergency contacts,which shall be reviewed annually and updated as necessary. 4.18.Disruption Due to Construction If a Public Street is under construction such that the work interferes with Contractor’s services,Contractor shall use commercially reasonable efforts to account for such interruption to permit the prudent and safe collection of Solid Waste from affected Customers. Comprehensive Solid Waste Collection Agreement Page 7 Page 69 of 201 4.19.Site Planning Assistance The City shall,as part of its permitting process,cause written notice to be given to Contractor of any development permit application containing plans for the construction of a new or substantially remodeled building or other permanent structure,where commercial container service is contemplated for solid waste,so that Contractor may provide,but has no obligation to do so,written comments concerning Contractor’s ability to access Containers and provide safe and efficient collection services to such property. Upon request and at standard rates determined from time to time by Contractor, Contractor shall provide site planning assistance to property owners or their representatives.The site plarming assistance shall be available for all new construction or remodeling of buildings and structures within the City Service Area,and shall address the design and planning of Solid Waste removal areas and their location upon the site. Contractor shall provide its assistance for optimizing loading docks,enclosures, compactor equipment and other similar structures or areas,provided however,that such site planning consultation service shall be made without warranty and without liability of any sort,and Contractor may require a commercially reasonable waiver to such effect prior to giving such site planning assistance. 4.20.Safeguarding Public and Private Property Contractor shall use commercially reasonable efforts to avoid causing damage to any public and private improvements,facilities and utilities whether located on public or private property.If such improvements,facilities,utilities or Curbs me damaged and such damage is due to the negligence or intentional misconduct of Contractor,Contractor shall notify the City immediately in writing of such damage.If such damage is of a type not ordinarily suffered or in excess of normal wear and tear caused by vehicles operated by Contractor,Contractor shall either repair such damage,if practicable,or reimburse the City for the reasonable cost of repairing such damage,which cost shall be the cost of restoring such property to the condition immediately prior to such damage. 4.21.Company Name Contractor shall not use a trade name containing any words that implies Contractor is operated or owned by the City. 4.22.Coordination between City and Contractor Within a sixty (60)days time after receipt of written request of either party,the other party shall meet at the City’s offices to resolve any operational issues with Contractor’s services.Contractor shall provide the City with access to Contractor’s route and Customer service data,billing information,safety records,equipment,facilities and other applicable items,and the City shall provide Contractor with access to the City’s records applicable to the issue. Comprehensive Solid Waste Collection Agreement Page 8 Page 70 of 201 4.23.Disposal Restrictions and Requirements Except as expressly provided herein,Contractor shall not knowingly or negligently collect,transport or dispose of Hazardous Waste or Biomedical Waste,and shall have no responsibility for such waste.Contractor shall not be required to collect Hazardous Waste,Biomedical Waste or any other materials that are either restricted from disposal or would pose a danger to Contractor’s collection crews.If materials are rejected for this reason,Contractor shall leave a written notice with the rejected materials listing why they were not collected and providing the Customer with a contact for further information about proper disposal options.The Customer shall remain responsible for all costs associated with handling and disposal of such materials inadvertently collected by Contractor. 4.24.Disposal Site for Solid Waste Contractor shall deliver all Solid Waste to an appropriate disposal site operated by Contractor or such other disposal site or sites that satisfy applicable state regulations. Contractor shall provide the City with a list of the disposal sites being used by Contractor. 4.25.Adjustment of Service Level for Certain Customers If Contractor in its commercially reasonable discretion determines that a Residential Customer is generating quantities or types of Solid Waste different from a typical Residential Customer,Contractor shall notify City of the same.Within thirty (30)days of Contractor’s notice,City shall determine if the Residential Customer maintains a commercial enterprise from the Residence,for example by determining if a business license has been issued declaring the business address to be same as the Residence,and should be served by a commercial Solid Waste service plan.If City determines that the customer is operating as a commercial enterprise,said Residential Customer’s service shall be revised to the appropriate commercial service most closely approximating the service required by the affected Customer,as determined by Contractor. 4.26.Violation of Ordinance Contractor shall promptly give written notice to the City of any observed violations of the City’s ordinances concerning the containerization,collection,transport and disposal of Solid Waste. 4.27.Public Information The City may develop,at its expense,public outreach and education programs concerning the reduction of Solid Waste,the recycling of Recyclable Materials,any other programs concerning Solid Waste service within the City Service Area,including the mandatory Solid Waste collection requirements for all Customers in the City Service Area.Contractor shall cooperate in good faith with the City to design and distribute promotional materials to Customers throughout the City Service Area. Comprehensive Solid Waste Collection Agreement Page 9 Page 71 of 201 4.28.Compaction of Solid Waste If any Commercial Customer should deposit into its Container a substantial amount of compacted Solid Waste,or any other Solid Waste that has been subjected to a process modifying its composition or nature resulting in the reduction of its volume because of an increase in density,Contractor may assess against such Commercial Customer an additional charge equal to the difference in compacted and uncompacted Solid Waste service rates set forth in the Rate Schedule. SOLID WASTE SERVICE 5.1.Residential Service 5.1.1.Residential Customer Solid Waste Service Contractor shall collect,transport and dispose of Solid Waste from all Residential Customers within the City Service Area,provided that the Solid Waste is properly contained in Residential Carts supplied by Contractor and set out for collection at the Curb on or abutting Public Streets or Private Roads,together with any additional Solid Waste contained in appropriate bins,bags,cans or other receptacles that could not be placed in the Residential Carts.In addition, Contractor shall collect an unlimited number of Solid Waste Units that are properly set out by a Residential Customer adjacent to its Residential Cart. Contractor’s collection of Solid Waste placed outside of the Residential Cart shall be at no additional cost unless the materials could reasonably have been placed in the Residential Cart.Each Unit of Solid Waste not provided in this manner for collection shall be subject to a special pickup charge as provided in the Rate Schedule.Contractor shall also dispose of passenger vehicles tires,but not truck or tractor tires,from Residential Customers.If,in Contractor’s commercially reasonable discretion,Contractor determines that a Residential Customer is disposing of passenger vehicle tires in excess of four (4)per year,Contractor may assess the affected Residential Customer a charge for tire disposal in accordance with the rate set forth in the Rate Schedule. 5.1.2.Residential Carts Contractor shall provide each Residential Customer within seven (7)business days of the Customer’s request with a 96-gallon Residential Cart,provided however,that qualifying Residential Customers may request the use of a 64- gallon Residential Cart as described in Section 5.1.3.Residential Carts shall be rodent and insect proof,and equipped with functional wheels or rollers. Contractor shall maintain all Residential Carts in good condition without any jagged edges or holes.If Contractor’s employees note any damaged hinges, holes,poorly functioning wheels or other conditions requiring repair,Contractor shall repair,at its sole cost,such condition without need of request from the Customer.Contractor shall repair the Residential Cart within seven (7)business Comprehensive Solid Waste Collection Agreement Page 10 Page 72 of 201 days of request or notice of a condition requiring repair,or provide a temporary Residential Cart as necessary.Contractor shall replace,at its sole cost,any Residential Cart that is damaged or missing on account of accident,act of nature or the elements,?re,or theft or vandalism by other members of the public within three (3)business days.Contractor may provide replacement Residential Carts that are new or used and reconditioned,provided such Residential Carts are clean and presentable.Contractor shall collect and dispose of damaged and unusable Residential Carts.I?in Contractor’s commercially reasonable discretion, Contractor has to replace or repair a damaged Residential Cart as a result of excess wear and tear or otherwise the result of the negligence or intentional misconduct by the Residential Customer,Contractor may charge the Residential Customer a replacement fee for such Residential Cart at the rate set forth in the Rate Schedule.Residential Customers shall be responsible for the cleaning of their Residential Carts. Residential Carts placed for collection shall not weigh in excess of one hundred- twenty (120)pounds for the 64-gallon Residential Cart or one hundred-eighty (180)pounds for the 96—gallonResidential Cart. 5.1.3.Senior,Low Income Discount Contractor shall provide Solid Waste service to those Residential Customers qualifying for the senior,low income discount rate set forth in the Rate Schedule upon the same terms and conditions set forth in section 5.1.1 and Section 5.1.2, except that such qualifying Customers shall be provided with one 64—gallon Residential Cart,and such Residential Customers shall be limited only to the use of such Residential Cart for the disposal of Solid Waste.Each Unit of Solid Waste not placed within such Residential Cart for collection shall be subject to additional pickup charges at the rate set forth in the Rate Schedule.If a senior, low income Residential Customer sets out more Solid Waste than may be contained in a 64 gallon Residential Cart on two or more occasions in any calendar year,Contractor may at any time thereafter cause such Residential Customer to change to the Unlimited Residential Customer service plan at the applicable service rate set forth in the Rate Schedule. Prior to Contractor providing such discounted service,the City shall give written notice to Contractor that the senior,low income Residential Customer has certi?ed each of the following conditions to the City,and that the City has verified to the extent reasonably possible,as being true and correct: (i)The Residential Customer is a single occupant of or the head of a household all of whose members have combined armual income from all sources that is not greater than the United States Federal Poverty Level. Such poverty level shall be determined by the “Very Low Income Limits” and updated annually by the City;and Comprehensive Solid Waste Collection Agreement Page 11 Page 73 of 201 (ii)The Residential Customer must be the customer of the solid waste service and must be directly responsible for the payment of the solid waste bill; and (iii)The Residential Customer is the fee simple owner,or the primary tenant named on the lease,of a Single Family Residence and has resided at such location for a period of not less than ninety (90)consecutive days and must intend to remain at such place;and (iv)The Residential Customer is at least sixty—two(62)years of age or older; and (V)The Residential Customer shall state on oath that the one (1)64 gallon Residential Cart shall be adequate to meet the requirements of the Residential Customer without creating a public nuisance or a public health hazard;and (vi)The City may require the person demonstrating satisfactory proof for a house hold that quali?es for the rates set forth in this section to make an updated application at any time.“Head of the household”means the person owning or having control of the dwelling unit.In the case of a husband and wife,either person shall be considered the “head of the household”;and (vii)The Residential Customer has ?led the appropriate application under oath with the City that the Residential Customer shall inform the City in writing if there is any change in the household’s status as it relates to the requirements set forth in (i)—(vii)above,and acknowledges the City may require a.n updated application at any time. The City shall,from time to time but not more than once per month,provide Contractor with a list of the Residential Customers that have satis?ed the above conditions and quali?ed for the applicable discount rate,which discount rate shall go into effect for the subject Residential Customers not later than thirty (30)days after the date of such written notice from the City. Contractor may terminate such discounted service if and when Contractor or the City has a reasonable belief that such Residential Customer no longer quali?es for such discounted service.The City upon its own volition,or within thirty (30) days of receipt of Contractor’s written notice,shall use reasonable due diligence to determine if such Residential Customer continues to qualify for such discounted service.If the qualifying Residential Customer loses such status, Contractor shall provide written notice to the Residential Customer and the service rate for Unlimited Residential Service shall be assessed for the first Solid Waste service occurring a?er the date of such written notice. Comprehensive Solid Waste Collection Agreement Page 12 Page 74 of 201 5.2. 5.1.4.Household Hazardous Waste Program Contractor shall accept Household Hazardous Waste from Customers residing in Residences within the City Service Area whose accounts with Contractor are in good standing.Contractor shall comply with all applicable State of Washington statutes and regulations including,but not necessarily limited to,Department of Ecology guidelines and permit requirements.At least once per week on a day approved by the City for a minimum of eight (8)consecutive hours,Contractor shall accept without charge Household Hazardous Waste at a facility properly licensed and approved by the City to receive such materials.Contractor may also accept,but has no obligation to do so,other hazardous waste from any other person or Customer,provided that such additional service complies with all applicable laws and contractual obligations of Contractor,and upon such terms and conditions and service rates acceptable to Contractor.Contractor shall transport and dispose of all collected Household Hazardous Waste to an appropriate disposal site.Contractor shall regularly publish brochures concerning the Household Hazardous Waste program,including the location of the facility and the hours of service. The parties hereto acknowledge that the Household Hazardous Waste program is conditioned upon and subject to the continuing effectiveness of that certain agreement by and among Contractor,the City and Franklin County,pursuant to which Franklin County has delegated to Contractor the county’s duties under Washington state law to implement and administer a Household Hazardous Waste program.Contractor shall cause the cost of such program to be included in the service rates set forth in the Rate Schedule in full compensation of such services. If and when such agreement or Contractor’s obligation thereunder has been terminated,the Household Hazardous Waste program made part of this Agreement shall also be automatically terminated.In such event,the portions of this Agreement authorizing and requiring Contractor to collect Household Hazardous Waste shall be deemed terminated without further action required of any party,and Household Hazardous Waste shall be deemed to be unacceptable waste for collection.On the next Annual Adjustment Date following the date on which Contractor is no longer required to collect such waste,Contractor shall equitably adjust its service charges for each level of Solid Waste service. Commercial Service 5.2.1.Commercial Customer Solid Waste Service Contractor shall collect Solid Waste from all Commercial Customers within the City Service Area,provided that the Solid Waste is properly contained within Containers supplied by Contractor. Comprehensive Solid Waste Collection Agreement Page 13 Page 75 of 201 5.2.2.Commercial Containers 5.2.2.1 Container Types Contractor shall provide to each Commercial Customer,and each Commercial Customer may select,the following types of Containers: 1.5-,2-,3-,4-,6-or 8-cubic yard Detachable Container;11-,20-,30-or 40-cubic yard Drop-Box Container;a 96—gallonor 64-gallon wheeled cart similar to the respective Residential Carts.Contractor may from time to time provide additional or remove existing Container service options,provided however,that Contractor shall provide at least thirty (30)days prior written notice to affected Commercial Customers with service plans for Containers that are being discontinued.Detachable Containers shall be watertight and equipped with tight-fitting metal or plastic covers,which covers shall be closed by Contractor after every collection service,and may be equipped with four (4)wheels for those Containers with volumes of 4-cubic yards or less.Drop-Box Containers shall be constructed of metal,and if requested by a Customer,equipped with a tight-?tting screened or solid cover operated by a winch system. Detachable Containers up to 8-cubic yards shall not weigh in excess of one thousand two hundred (1,200)pounds,and Drop-Box Containers shall not weigh in excess of twenty thousand (20,000)pounds. Commercial carts shall not weigh in excess of one hundred twenty (120) pounds for the 64-gallon commercial cart or one hundred—eighty(180) pounds for the 96-gallon commercial cart. 5.2.2.2.General Terms and Conditions Applicable to Commercial Containers Contractor shall furnish each Commercial Customer with the appropriate Container within seven (7)business days of the Customer’s request. Contractor shall deliver and place the Container on the Customer’s property in a location determined by the Customer,provided such location is reasonably acceptable to Contractor for the safe and efficient collection thereof.Contractor shall maintain all Containers in good condition without any leaks,jagged edges or holes.If Contractor’s employees note any damage to a Container requiring repair,Contractor shall repair,at its sole cost,the damage without need of request from the Customer.Contractor shall repair the Container within seven (7) business days of request or notice of a condition requiring repair,or provide a temporary Container as necessary.Contractor shall replace,at its sole cost,any Container that is damaged or missing on account of accident,act of nature or the elements,?re,or theft or vandalism by other members of the public within there (3)business days.Contractor may provide Customers with either a new or used and reconditioned Comprehensive Solid Waste Collection Agreement Page 14 Page 76 of 201 replacement Containers,provided such Containers are clean and presentable.Contractor shall collect and dispose of damaged and unusable Containers.If,in Contractor’s commercially reasonable discretion,Contractor must replace or repair a damaged Container as a result of excess wear and tear or otherwise the result of the negligence or intentional misconduct by the Commercial Customer,Contractor may charge the Customer a replacement fee for such Container.Not more often than once per year,Contractor shall clean without additional cost, said cost being included in the respective service plan,each Customer’s Container.In addition,Contractor shall also replace a Container within three (3)business days of request by the City if the City determines that the Container fails to comply with reasonable health and safety standards,provided however,that Contractor shall assess the Customer a cleaning fee at the rate set forth in the Rate Schedule. 5.2.2.3.Additional Fees Contractor shall not charge Commercial Customers an initial delivery fee for a Container,except in the case of temporary Container service or a Container redelivered to a Customer restarting service after having service suspended with its Container removed because of non-payment of invoices.Contractor shall charge a rollout fee in ten (10)foot increments for Containers that must be rolled by Contractor more than twenty (20)feet to reach the collection vehicle at its nearest point of access.Gate and/or disconnect charges shall be assessed as set forth in the Rate Schedule when Contractor must open,unlock,or close a gate in order to service a Container.Contractor may assess additional charges for excess materials loaded so as to lift,as applicable for such Commercial Customer,the Detachable Container lid or Drop-Box Container lid more than six (6)inches from the normally closed position. Commercial Customers may request extra collections of Detachable Containers in addition to the regular service,which additional service shall be subject to an additional charge equal to the proportional amount (e.g.one pick-up per week rate divided by 433 weeks per month)of their regular monthly rate for that service.Extra collections of Drop- Box Containers shall be provided at the regular rate set forth in the Rate Schedule. 5.2.2.4.Customer-Owned Drop-Box Containers Notwithstanding anything to the contrary in Section 5.2.2.1 above, Contractor may service compactor Drop-Box Containers owned by Commercial Customers at the special collection rates set forth in the Rate Schedule.Contractor shall have no obligation to maintain,repair or clean a compactor Drop-Box Container owned by a Commercial Customer,and shall have no liability to such Customers for damage Comprehensive Solid Waste Collection Agreement Page 15 Page 77 of 201 caused to such compactor Drop-Box Containers except in the event of gross negligence or intentional misconduct by Contractor.If,in the commercially reasonable discretion of Contractor,a Customer—owned compactor Drop-Box Container is not safe,Contractor may elect not to provide service until such compactor Drop-Box Container is made safe for usage and transport. 5.3.Temporary Solid Waste Service Plans Upon request of any Customer,Contractor shall provide on a temporary basis the Container requested by said Customer at the rate set forth in the Rate Schedule for such temporary service.The temporary service rate shall apply for all service requests that do not exceed ninety (90)consecutive days.If the Customer requires a Container for a longer period of time,Contractor may require the Customer to select the appropriate Commercial service plan set forth in the Rate Schedule for the requested Container.If the temporary service plan is in addition to a regular service plan in effect for the Customer, Contractor shall be authorized to bill the Customer for both service plans.Contractor may require the Customer to make a security deposit in advance of a temporary service plan at the rate set forth in the Rate Schedule. 5.4.Solid Waste Service to City Properties and Facilities Contractor shall provide the City with Solid Waste service from all City locations for which the City desires service pursuant to the City’s service plan set forth in the Rate Schedule.The City may modify the locations for which the City desires service by providing Contractor with ten (10)days prior written notice,in which case,Contractor shall adjust,if applicable,the fee payable by the City pursuant to the Rate Schedule Exhibit C).As part of the City’s service plan,Contractor shall also provide ,without direct cost to the City,Solid Waste service as defined in Exhibit “E”of up to 1,500 tons (Base Tonnage)of Solid Waste gathered by the City from alley clean-ups,street sweeping and sewer debris,and deposited in specially designated Drop-Box Containers supplied by Contractor.The Solid Waste service shall be increased in increments of 250 tons of Solid Waste every ?ve years based on the City’s solid waste need over the Base Tonnage.The Solid Waste service increase will be based on the following calculations: (a)Solid Waste tonnage from city owned properties less Base Tonnage equals Net Solid Waste tonnage from city owned properties with direct cost to the City,(b)if the Net Solid Waste tonnage from city owned properties with direct cost is less than 250 tons,then no change is required,and (c)if the Net Solid Waste tonnage from city owned properties with direct cost is greater than 250 tons,then an increase will be required. If the Net Solid Waste is greater than 250 tons,then the Net Solid Waste plus the Base Tonnage will equal the new Total Solid Waste service for the next five years.Based upon a change in the Total Solid Waste,the Contractor shall be able to adjust Solid Waste service rates consistent with section 6.3.7. Comprehensive Solid Waste Collection Agreement Page 16 Page 78 of 201 Contractor will send a quarterly accounting of the remaining balance of the total Solid Waste service to be provided to the City without direct cost.The accounting period for this Solid Waste service will begin on January l and end on December 31 of each contract period. 5.5.Recyclable Materials and Green Waste If,during the Term of this Agreement,the City elects to provide additional services related to Curbside recycling of Recyclable Materials and/or Green Waste from Residences consistent with revisions to and updating of the Franklin County Comprehensive Solid Waste Management Plan,the City may request that Contractor collect,transport,process and recycle Recyclable Materials from all Customers residing in Residences located within the City Service Area.Within ninety (90)days of receipt of such notice,Contractor shall provide the City with a written proposal of the service rates, planned service routes and schedules for Customers residing in Residences and,if also requested by the City,all other Customers,proposed Recycling Carts and Recycling Containers,commodities that will qualify as Recyclable Materials based on current market conditions,estimated interval to secure necessary equipment and facilities,and any other pertinent terms and conditions of such service.Contractor shall remit all proceeds from the sale of collected Recyclable Materials pursuant to the recycling program to the City.If Contractor’s proposal is acceptable to the City,the City shall give written notice (Exercise Date)to Contractor to commence providing such service within the City Service Area on the date set forth in the City’s notice that is consistent with Contractor’s proposal.Upon receipt of the City’s notice,the parties shall cooperate in good faith to develop and distribute materials and information to Customers within the City Service Area concerning the addition of the recycling and/or green service. If the City declines to require a separate Recyclable Materials and/or Green Waste service governed by this Agreement,the City shall permit,at Contractor’s written request,the Washington Utilities and Transportation Commission (“WUTC”)to assume jurisdiction of Curbside Recyclable Materials and/or Green Waste service plans,which will be implemented and operated by Contractor. 5.6.Miscellaneous Solid Waste Services Contractor shall also provide the following special services: (i)With respect to Residential Customers and those Commercial Customers residing in Residences located within Mixed—UseBuildings and Multi—FamilyComplexes within the City Service Area,Contractor shall provide a special Solid Waste service at the rate set forth in the Rate Schedule for Units of Solid Waste that exceed the limitations set forth in the definition of “Solid Waste Units,”which service shall be provided within ?ve (5)business days of the Customer’s request. (ii)With respect to qualifying Customers,Contractor shall administer and provide Solid Waste service as provided under and pursuant to Pasco City Code Section Comprehensive Solid Waste Collection Agreement Page 17 Page 79 of 201 (iii) (iv) 5.7. 6.04.240,“Special Collection and Residential Coupon,”for so long as said program is in effect under the Pasco City Code. With respect to Residential Customers and those Commercial Customers residing in Residences located within Mixed—UseBuildings and Multi—Fa1nilyComplexes within the City Service Area,Contractor shall collect and dispose of refrigeration and cooling devices common to households,such as refrigerators and air- conditioning units,at the rates set forth in the Rate Schedule,provided however, that the Residential Customer shall either request Contractor to purge and dispose of the cooling substance as required by applicable law or provide Contractor with a certi?cate reasonably satisfactory to Contractor from a quali?ed contractor stating that the same has been completed prior to collection and disposal of such item. With respect to all Customers within the Service Area (except as otherwise provided in Section 5.1.1),Contractor shall collect,transport,and dispose of tires from passenger vehicles and trucks at the rate set forth in the Rate Schedule. Customer Service 5.7.1.Customer Service Office Contractor shall maintain a Customer service of?ce within the City Service Area with a local telephone number or toll free phone number where Contractor may be contacted by Customers during the hours of 8:00 a.m.to 5:00 p.m.Monday through Friday,except for the holidays recognized by the State of Washington. Contractor shall provide customer service functions relating to service delivery, potential service options,service rates,receiving and resolving customer complaints,dispatching temporary Containers and special collections,and resolving billing questions. 5.7.2.Complaints Contractor shall give prompt and courteous attention to all Customer complaints received by Contractor.Contractor shall promptly investigate any complaint of a missed collection,and if veri?ed,shall arrange for collection as provided in this Agreement.Contractor shall maintain a record of actions taken on all material and legitimate complaints that could not be resolved during the initial communication with the Customer,regardless of how the complaint was received, including date,time,Customer’s name and address (if the Customer is willing to give this information),method of transmittal,and nature,date and manner of resolution of the complaint in a computerized daily log.Contractor shall make a conscientious effort to resolve all complaints promptly but otherwise within one (1)business day of the original call or e-mail.The computerized daily log shall be available for inspection by the City,or its designated representatives,during Contractor’s of?ce hours,and shall be in a format reasonably acceptable to the City. Comprehensive Solid Waste Collection Agreement Page 18 Page 80 of 201 5.7.3.Emergency Contact Contractor shall provide the City with the name and Contact information in the event of an emergency requiring contact with Contractor outside of normal of?ce hours.Contractor shall cause such representative to be available at said emergency telephone number during all hours other than normal of?ce hours. 5.8.Reports In addition to any report required by law,Contractor shall maintain records of the number of loads of Solid Waste collected and transported within the City Service Area and the approximate total tonnage of Solid Waste and any other material herein authorized hauled by Contractor to Contractor’s disposal site.Contractor shall make such records available to the City upon request.Subsequent to April 15 of each calendar year,and following at least two (2)months prior written notice,Contractor shall provide to the City a pro?t/loss ?nancial statement for the preceding calendar year together with a pro-fonna ?nancial statement for the ensuing calendar year.The City shall be permitted to review but not make copies of the ?nancial statements.Upon the City’s request,Contractor shall make available the same ?nancial statements to an accounting ?rm selected by the City and reasonably acceptable to Contractor,provided,however,that the accounting ?rm provides Contractor with a commercially acceptable form of con?dentiality agreement. Contractor shall bear all reasonable costs of such accounting ?rm. COMPENSATION 6.1.Basis for Determination of Solid Waste Service Rates The parties expressly intend that the rates and charges established by this Agreement are designed to capture all legitimate operating and capital costs incurred by Contractor and to provide a fair rate of return on Contractor’s investment in providing all services included under this Agreement as may be measured by extemal methodologies such as the Washington Utilities and Transportation Commission’s “Lurito-Gallagher” ratemaking methodology,or other such standards that will enable Contractor to establish fair,just,reasonable and suf?cient overall rates in order to allow Contractor to innovate, invest and continue to provide service types and levels responsive to the City’s reasonable requirements hereunder. 6.2.Compensation for Solid Waste Services Contractor may collect from each and every Customer within the City Service Area the appropriate charge for the Solid Waste service plan selected by such Customer,together with any additional charges,fees and expenses that may be incurred or requested by such Customer,at the rates set forth in the Rate Schedule.Contractor shall act in good faith to coordinate with Customers to minimize the charges assessed to Customers. Comprehensive Solid Waste Collection Agreement Page 19 Page 81 of 201 6.3.Adjustment to Solid Waste Service Rates 6.3.1.Annual Rate Adjustment Contractor’s service charges,excluding fuel expenses,for each level of Solid Waste service shall increase once every year in an amount not to exceed eighty percent (80%)of the annual percentage increase in the Consumer Price Index — All Urban Consumers;West Region,Size B/C,standard reference base period 1982-84 =100,hereinafter referred to as the “Adjustment Index,”as determined in this section.Adjustments to Contractor’s service charges shall be made in units of one cent ($0.01).Fractions less than one cent ($0.01)shall not be considered when making adjustments. Rates shall be adjusted annually,beginning January 1,2016 (the “Adjustment Date”).Contractor shall submit to the City for review and approval a “Rate Adjustment Statement”showing the calculations of new service rates for the following year,including a calculation of the percentage change in the Adjustment Index for the most recent twelve (12)month period ending the June prior to the Adjustment Date.Contractor’s calculations shall be provided to the City annually no later than October 1“and the City shall have ninety (90)days to con?rm Contractor’s rate modi?cation calculations.Upon receipt of the City’s approval,which shall not be unreasonably withheld or delayed,the new rates shall take effect on January 15‘of the subsequent year. 6.3.2.Adjustments to Tipping Fees and Disposal Fees A tipping disposal or acceptance fee charged for Solid Waste shall be the ?nancial responsibility of Contractor,provided however,Contractor may incorporate such disposal,tipping or acceptance fees as part of the service rates set forth in the Rate Schedule.In the event of an adjustment in tipping fees or disposal fees paid by Contractor,Contractor shall adjust the tipping fee and disposal fee component of the Solid Waste service rates for each level of service to re?ect such adjustment.Contractor shall provide the City with notice of any tipping fee or disposal fee adjustment promptly upon knowledge thereof by Contractor.Contractor shall provide to the City evidence supporting the requested change in service fees as a result of an adjustment to tipping fees and disposal fees at least forty-?ve (45)days prior to date requested by Contractor for such adjustment to go into effect,which in any event shall not be earlier than the date of the adjustment to the tipping fee or disposal fee.Upon receipt of the City’s con?rmation that the calculations are correct,the new Solid Waste service rates for each level of service shall take effect on the date requested by Contractor.Contractor shall include a notice in the next invoice issued to the Customers describing the increase in the service rates pursuant to this section. Comprehensive Solid Waste Collection Agreement Page 20 Page 82 of 201 6.3.3.Fuel Expense Adjustments Contractor may also assess to all Customers a “Fuel Surcharge,”provided the surcharge is determined and used in accordance with the provisions hereinafter set forth.The Fuel Surcharge shall be implemented and charged by Contractor in the instance that the resulting calculation equals 0.5%or more as described below. The following de?nitions apply to the use and application of the Fuel Surcharge: 0 Base Fuel Expense:the proportion of approved rates attributable to gross fuel expense,hereby ?xed at 5.87%. 0 Base Fuel Price:the average cost of diesel fuel used at the time of the 2016 rate authorization,hereby ?xed at $3.79. 0 Current Fuel Price:the per gallon price for retail sales of “West Coast Number 2 Diesel Ultra-Low Sulfur”(0-15 PPM)for the most recent full month reported in the “Monthly Diesel Prices —Ultra-Low”index published by the Energy Information Administration of the US Government or the DGE index. 0 Fuel Surcharge:the product of multiplying the base fuel expense by the percentage change between the base fuel price and current fuel price [e.g. $3.79*(current price/$3.79)]. The Fuel Surcharge shall be calculated by subtracting the Base Fuel Price from the Current Fuel Price and converting the difference to a percentage of the Base Fuel Price;that percentage shall then be multiplied by the Base Fuel Expense and the resulting product shall constitute the Fuel Surcharge.Contractor shall submit to the City a Fuel Surcharge calculation worksheet by the 15th day of the month immediately preceding the months of August,October,December,February, April and June.The Fuel Surcharge shall be deemed approved and authorized unless written objection from the City to the Contractor’s mathematical calculations is received by Contractor within seven (7)days of the City’s receipt of the worksheet.In such case,the parties shall meet within ?ve (5)business days and work in good faith to resolve any alleged errors in such mathematical calculations.A Fuel Surcharge shall commence only on the ?rst of each of the calendar months named herein above,and shall continue in effect for a two-month period,after which time a new Fuel Surcharge,if applicable,shall go into effect pursuant to the provisions hereof.Contractor shall incorporate such Fuel Surcharge in the Customers’invoices in a timely manner. 6.3.4.Annual Rate Adjustment Cap The Annual Rate Adjustment Cap is met when the cumulative rate increases of 6.3.](Annual Rate Adjustment),6.3.2 (Adjustments to Tipping Fees and Disposal Fees),6.3.3 (Fuel Expense Adjustment),and 6.3.5 (Solid Waste Disposal Cost Adjustment,if applicable)meet or exceed ?ve percent (5%)as de?ned by the Consumer Price Index in the United States Department of Labor--All Urban Consumers;West Region,Size B/C,standard reference base period 1982-84 = 100 (Adjustment Index). Comprehensive Solid Waste Collection Agreement Page 21 Page 83 of 201 If the Annual Rate Adjustment Cap is met,the Contractor may either limit all rate increases (sections 6.3.1,6.3.2,6.3.3,and 6.3.5)at the Annual Rate Adjustment Cap or proceed as outlined in section 6.3.7.The Contractor will notify the City within 45 days that the Annual Rate Adjustment Cap has been reached.The Annual Rate Adjustment Cap will be reset on January 15‘of every year as per section 6.3.1. 6.3.5.Solid Waste Disposal Cost Adjustment Contractor may also adjust service rates for all levels of service based upon the change in the annual disposal cost of Solid Waste collected by Contractor (“WACOD Adjustment”).Commencing with the second full twelve month Adjustment Period after any “Exercise Date”pursuant to Section 5.5,and for each Adjustment Period thereafter (each,a “Comparison Period”),the Contractor shall determine the change in the annual disposal cost of Solid Waste collected by Contractor during such Comparison Period as compared to the first full twelve month Adjustment Period after the Exercise Date (“Base Period”).If the of Solid Waste collected for such Comparison Period has changed by more than ?ve percent (5%)from the Base Period,Contractor shall prepare a WACOD Adjustment calculation worksheet (“WACOD Adjustment Statement”)that calculates the WACOD Adjustment to the service rates pursuant to the formula set forth in Exhibit D.The WACOD Adjustment of the service rates shall be adjusted concurrently with armual adjustments to service rates pursuant to Section 6.3.1,with the first month of January two years after the Exercise Date being the ?rst potential date for an adjustment pursuant to this section.Concurrently with the Statement provided to the City pursuant to Section 6.2.1,the Contractor shall submit to the City for review and approval the WACOD Adjustment Statement calculating the adjustment to new rates for the next year,which statement shall show the calculations required in this Section.The City shall have sixty (60)days to con?rm the Contractor’s WACOD Adjustment to the service rates.Upon receipt of the City’s approval of the WACOD Adjustment Statement,which shall not be unreasonably withheld or delayed,the WACOD Adjustment to the service rates shall take effect on January 15‘of the subsequent year. 6.3.6.Tax Additive The State Refuse Collection Tax (currently at 3.6%)and any applicable City Taxes shall be added to the rates speci?ed for each class of service and may be identi?ed separately and as additive to said rate on each billing service. 6.3.7.Other Modi?cations Contractor may apply to the City for rate adjustments that result from increases in the cost of operations arising during the Term of the Agreement.Contractor shall submit a written request to adjust the rates not more than ninety (90)days and not Comprehensive Solid Waste Collection Agreement Page 22 Page 84 of 201 less than sixty (60)days prior to the proposed effective date of the requested change.The City shall promptly consider such proposed rate change with consideration of historical and industry-wide pro?t levels and rate making methodologies utilized by the Washington State Utilities and Transportation Commission. 6.3.8.Changes in Impositions or Other Laws If the City,county,state or federal authorities impose new taxes,fees or surcharges or change the rates of existing taxes,fees or surcharges after the Commencement Date,or there are other changes in federal,state or local laws or regulations,and the impact of these changes results in increased or decreased Contractor costs,Contractor and City shall enter into good faith negotiations to determine whether compensation adjustments are appropriate and if so,to determine the amount and the method of adjustment.If the City requires review of Contractor’s financial or other proprietary information in conducting its rate review,at the request of Contractor,the City shall retain a third party to review such information at Contractor’s expense,provided however,that Contractor may require such third party to execute a commercially reasonable con?dentiality agreement.Any such additional ?nancial review costs shall be considered allowable business expenses for future rates adjustment purposes. 6.3.9.Termination by Contractor If Contractor requests a rate adjustment pursuant to this Section 6 and the City fails to consent to such request for any reason within four (4)months of the date of Contractor’s written request,Contractor may terminate this Agreement by giving written notice of termination to the City not less than four (4)months and not more than eight (8)months after the date of Contractor’s written request for such rate adjustment.This Agreement shall terminate on the date set forth in Contractor’s written notice of termination,which in no event shall be less than six (6)months from the date of Contractor’s written notice of termination. 6.4.Billing for Solid Waste Services;Delinquent Accounts Contractor shall invoice,and shall be responsible for collecting,to and from each and every Customer within the City Service Area for the Solid Waste service plan selected by the Customer.Contractor shall cause each bill to include the following information:(i) Customer name;(ii)Contractor’s Customer account information;(iii)service address; (iv)service commencement and termination dates,as applicable;(V)billing period,(vi) date of the bill;(vii)Customer’s service plan;(viii)date payment is due;(ix)date payment is delinquent;(x)charges for the Customer service plan;and (xi)additional charges,if any.Contractor shall bear the risk of collection.It is the intent of the parties that all issues relating to service and rates under this Agreement should be the responsibility of the Customer,Contractor and the City,and no third party shall have standing to request,speak or represent issues of service in the City Service Area except Comprehensive Solid Waste Collection Agreement Page 23 Page 85 of 201 for the direct Customer,Contractor or the City. Notwithstanding the foregoing,the City reserves the right as provided in Pasco City Code Section 6.04.310 to assume the obligation of billing Customers within the City Service Area for Solid Waste services provided by Contractor hereunder.If the City elects to provide such service,the City shall give Contractor six (6)months prior written notice. The parties shall negotiate in good faith the terms and conditions of the transfer of such service to the City,including without limitation,the City assuming the risk of collecting payments. 6.5.Delinquent Accounts and Other Customer Defaults Contractor shall have any and all remedies provided under Pasco Municipal Code Chapter 6.04 and,as applicable,Washington law and regulations,with respect to delinquent accounts and other defaults by Customers,including without limitation, refusing or terminating Solid Waste service,but excluding those remedies in the City’s code expressly reserved to the City.The City shall assume no responsibility for the collection of any amount due by a Customer,provided however,that the City shall cooperate in good faith with Contractor in the enforcement of Contract0r’s rights and remedies to collect any delinquent accounts or cure defaults as may be provided under Pasco Municipal Code Chapter 6.04.Contractor shall provide the City on a monthly basis a report of all service terminations during the previous month. PERFORMANCE FEES,DEFAULT AND REMEDIES 7.1.Performance Fees In the event that Contractor fails to meet any performance obligation set forth in this Agreement,the City shall give written notice to Contractor regarding such failure,in which case Contractor shall promptly take such corrective action to remedy the issue raised in the City’s written notice.In addition,City reserves the right to impose the following fines if Contractor fails to meet certain obligations as provided in this Agreement. ACTION OR OMISSION AMOUNT Collection before or after the times Fi?y Dollars ($50)per truck route (each speci?ed in this Agreement,except as truck on each route is a separate incident). expressly permitted by the City. Failure to collect missed materials within Fifty Dollars ($50)per incident to a one (1)business day after receipt of maximum of Five Hundred Dollars notice.($500)per truck per day. The performance fees schedule set forth here shall not affect the City’s ability to terminate this Agreement as provided in Section 7.2,provided however,the City acknowledges that the performance fees described in this section are an adequate remedy Comprehensive Solid Waste Collection Agreement Page 24 Page 86 of 201 for the above named defaults,and the City may not terminate this Agreement for any of the defaults described in this section unless Contractor has incurred performance fees in excess of $25,000.00 each month for at least three (3)consecutive calendar months. Contractor shall pay such performance fees within thirty (30)days of demand therefore from the City.The City shall provide Contractor with reasonably acceptable documentation supporting such performance fees together with the City’s demand therefore.Contractor may appeal any performance fees imposed under this section to the City Manager of the City of Pasco,to whom Contractor shall be allowed to present evidence as to why the amount of performance fees should be lessened or eliminated. 7.2.Default and Remedies If Contractor abandons or materially breaches its obligations hereunder or fails to fully and promptly comply with all of its provisions or fails to give reason satisfactory to the City for noncompliance,the City may then declare Contractor to be in default of this Agreement and notify Contractor of such default and shall provide Contractor with thirty (30)days to cure such default.If Contractor fails to cure such default in a timely marmer, the City may thereafter give notice of termination to Contractor and its surety.Upon receipt of any such notice,this Agreement shall terminate. NOTICES Any notice required or permitted to be given under this Agreement shall be in writing and may be given by personal delivery,by certi?ed mail,or by air courier,and if given personally or by mail,shall be deemed suf?ciently given if addressed to the City or to Contractor at the following address: The City:City of Pasco P.O.Box 293 525 N.Third Ave. Pasco,WA 9930 Attn:City Manager To Contractor:Basin Disposal,Inc. 2021 North Commercial Avenue P.O.Box 3850 Pasco,WA 99302-3850 Attn:Darrick Dietrich Mailed notices shall be deemed given on the ?fth (5th)business day following deposit in the United States mail,certi?ed postage prepaid.Notices delivered personally or by air courier shall be deemed given upon receipt.Either party may by written notice to the other specify a different address for notice purposes. Comprehensive Solid Waste Collection Agreement Page 25 Page 87 of 201 INSURANCE AND BOND REQUIREMENTS 9.1.General Insurance Requirement Contractor shall procure and maintain,at its sole expense,insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the services provided under this Agreement by Contractor,its agents, representatives,employees or subcontractors,as provided in this Section 9.Contractor’s maintenance of insurance as required by the Agreement shall not be construed to limit the liability of Contractor to the coverage provided by such insurance,or otherwise limit the City’s recourse to any remedy available at law or in equity. 9.2.Minimum Scope of Insurance Contractor shall obtain insurance that meets or exceeds the following requirements: (i)Automobile Liability insurance covering all owned,non-owned,hired,and leased vehicles.The policy shall be endorsed to provide contractual liability coverage. The City shall be named as an additional insured under Contractor’s Automobile Liability insurance policy with respect to the work performed for the City. (ii)Commercial General Liability insurance covering liability arising from premises, operations,independent contractors,products-completed operations,personal injury and advertising injury,and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate per Project Endorsement ISO form CG 25 03 ll 85,or its equivalent. There shall be no endorsement or modi?cation of the Commercial General Liability insurance for liability arising from explosion,collapse or underground property damage.The City shall be named as an additional insured under Contractor’s Commercial General Liability insurance policy with respect to the work performed for the City. (iii)Workers’Compensation coverage as required by the Industrial Insurance laws of the State of Washington. (iv)Hazardous Waste Hauling.To the Automobile Liability Minimum Scope of Insurance,Pollution Liability coverage at least as broad as that provided under ISO Pollution Liability-Broadened Coverage for Covered Autos Endorsement CA 99 48 and the Motor Carrier Act Endorsement (MCS 90)shall be attached. 9.3.Minimum Amounts of Insurance Contractor shall maintain the following insurance limits: (i)Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $2,000,000 per accident. (ii)Commercial General Liability insurance shall be written with limits no less than $2,000,000 each occurrence,$2,000,000 general aggregate and a $2,000,000 products-completed operations aggregate limit. Comprehensive Solid Waste Collection Agreement Page 26 Page 88 of 201 9.4.Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions in excess of $50,000 must be declared to and approved by the City,which approval shall not be unreasonably withheld.In the event the deductibles or self-insured retentions are not acceptable to the City,the City reserves the right to negotiate with Contractor for changes in coverage deductibles or self-insured retentions;or alternatively,require Contractor to provide evidence of other security guaranteeing payment of losses and related investigations,claim administration and defense expenses. 9.5.Other Insurance Provisions The insurance policies shall contain,or be endorsed to contain,the following provisions for Automobile Liability and Commercial General Liability: (i)Contractor’s insurance coverage shall be the primary insurance with respect to the City,its of?cials,employees and agents.Any insurance,self-insurance,or insurance pool coverage maintained by the City shall be in excess of Contractor’s insurance and shall not contribute with it. (ii)Coverage shall state that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer’s liability. (iii)Contractor’s insurance shall be endorsed to state that coverage shall not be cancelled unless the City is given prior written notice as provided under RCW 48.18.290. 9.6.Acceptability of Insurers Contractor shall secure insurance policies from insurers with a current A.M.Best rating of not less than A:VII. 9.7.Veri?cation of Coverage Contractor shall fumish the City with original certi?cates including,but not necessarily limited to,the additional insured endorsements,evidencing the insurance policies required pursuant to this Article 9 prior to the Commencement Date. 9.8.Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certi?cates and endorsements for each subcontractor before commencement of the work.All coverages for subcontractors shall be subject to the same insurance requirements as stated herein for Contractor. 9.9.Performance Bond/Surety Contractor shall provide and maintain at all times a valid Contractor’s Performance and Comprehensive Solid Waste Collection Agreement Page 27 Page 89 of 201 10. Payment Bond or bonds,letter of credit or other similar instrument acceptable to and approved in writing by the City in the amount of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00).The bond,letter of credit or other similar instrument shall be issued for a period of not less than one year,and Contractor shall provide a new bond, letter of credit or similar instrument,and evidence satisfactory to the City of its renewability,not less than sixty (60)days prior to the expiration of the bond,letter of credit or other similar instrument then in effect.The City shall have the right to call the bond,letter of credit or other similar instrument in full in the event its renewal is not con?rmed at least ?ve (5)days before its expiration. GENERAL TERMS 10.1.Indemnification 10.1.1.Indemnify and Hold Harmless Contractor shall indemnify,hold harmless and defend the City,its elected officials,officers,employees,agents and representatives,from and against any and all claims,actions,suits,liabilities,losses,costs,expenses,and damages of any nature whatsoever,including costs and attorney’s fees in defense thereof,or injuries,sickness or death to persons,or damage to property,which is caused by or arises out of Contractor’s exercise of duties,rights and privileges granted by the Agreement,provided,however,that Contractor’s obligation to indemnify, defend and hold harmless for injuries,sickness,death or damage caused by or resulting from concurrent willful or negligent acts or actions of Contractor and the City shall apply only to the extent of Contractor’s negligence. 10.1.2.Notice to Contractor;Defense In the event an action is brought against the City for which indenmity may be sought against Contractor,the City shall promptly notify Contractor in writing. Contractor shall have the right to assume the investigation and defense,including the employment of counsel and the payment of all expenses.On demand of the City,Contractor shall at its own cost and expense defend,and provide quali?ed attorneys reasonably acceptable to the City to defend,the City,its of?cers, employees,agents and servants.The City shall fully cooperate with Contractor in its defense of the City,including consenting to all reasonable affirmative defenses and counterclaims asserted on behalf of the City.The City may employ separate counsel and participate in the investigation and defense,but the City shall pay the fees and costs of that counsel unless Contractor has agreed otherwise.Contractor shall control the defense of claims (including the assertion of counterclaims) against which it is providing indemnity under this section,and if the City employs separate counsel the City shall assert all defenses and counterclaims reasonably available to it. Comprehensive Solid Waste Collection Agreement Page 28 Page 90 of 201 10.2. 10.1.3.Industrial Insurance Immunity Waiver With respect to the obligations to hold harmless,indemnify and defend provided for herein,as they solely relate to claims against the City,its elected of?cials, officers,employees,agents and representatives,Contractor agrees to waive Contractor’s immunity under industrial insurance,Title 51 RCW,for any injury, sickness or death suffered by Contractor’s employees that is caused by or arises out of Contractor’s negligent exercise of rights or privileges granted by the Agreement. Transfer of the Contract 10.2.1.Assignments,Subcontracts and Delegations Contractor shall not assign or subcontract any of the work or delegate any of its duties under this Agreement without the prior written approval of the City and submittal of proof of insurance coverage.When requested,approval by the City of a subcontract or assignment shall not be unreasonably withheld.In the event of an assignment,subcontracting or delegation of duties,Contractor shall remain responsible for the full and faithful performance of this Agreement and the assignee,subcontractor,or other obligor shall also become responsible to the City for the satisfactory performance of the work assumed.The City may condition approval upon the delivery by the assignee,subcontractor or other obligor of its covenant to the City to fully and faithfully complete the work or responsibility undertaken.In addition,the assignee,subcontractor or obligor shall sign a separate statement agreeing to abide by all terms and conditions of this Agreement. 10.2.2.Changes in Control If Contractor is a corporation,limited liability company or limited liability partnership,then any transfer of this Agreement by merger or consolidation,or any change in the ownership o?or power to vote,the majority or controlling interest of its outstanding voting stock,membership interest,or limited partnership interests,or in the controlling interest at any tier in the ownership structure of Contractor,or change of the manager or general partner for LLCS and LPs,respectively,shall constitute an assignment for the purpose of this section.If Contractor is a partnership,then any transfer of any partnership interest shall constitute an assignment for the purpose of this section.Any transfer of this Agreement by (i)merger or consolidation,(ii)any change in the ownership of,or power to vote,the majority or controlling interest of its outstanding voting stock, membership interest or limited partnership interest,as applicable,(iii)any entity succeeding in the business and assets of Contractor,(iv)any transfer to an entity that controls or is under common control with Contractor,or (V)any transfer to a subsidiary or af?liate shall not be considered an assignment requiring the City’s consent,provided however,that in each case described above such entity has Comprehensive Solid Waste Collection Agreement Page 29 Page 91 of 201 equal or greater ?nancial net worth than Contractor on the date of transfer,such entity remains in the control of Darrick Dietrich,the transferee assumes all obligations under this Agreement and that written noti?cation of the transfer, including a copy of the transfer documentation,is provided to the City at least ?fteen (15)days prior to the transfer.For purposes of this section,the term “control”shall mean ownership of more than 50%of the outstanding voting stock,membership interest or partnership interest. 10.3.Legal 10.3.1.Laws to Govern/Venue This Agreement shall be governed by the laws of the State of Washington both as to interpretation and performance.Venue shall be in Superior Court in the State of Washington for Franklin County. 10.3.2.Attorney Fees The Contractor agrees to pay reasonable attorney fees in the event the City is required to retain an attorney to enforce the Contractor’s obligations here under. 10.3.3.Arbitration Any disputes in the ?rst instance shall be directed to the Director of Community Development for resolution.All unresolved disputes with respect to the handling of complaints under this agreement shall be submitted to the City Manager for ?nal resolution. 10.4.Compliance With Laws Contractor shall comply with all applicable federal,state,county,and local laws,statutes, rules,regulations or ordinances,including without limitation,all health and environmental regulations and standards applying to the collection,transport and disposal of Solid Waste.Contractor shall also comply with all applicable requirements of the Federal Occupational Safety and Health Act of 1970 (OSHA),the Washington Industrial Safety and Health Act of 1973 (WISHA),and the standards and regulations issued pursuant to these statutes from time-to-time. 10.5.Non-Discrimination Contractor shall not discriminate against any employee or applicant for employment because of age,race,religion,creed,color,sex,marital status,sexual orientation,political ideology,ancestry,national origin,or the presence of any sensory,mental or physical handicap,unless based upon a bona ?de occupational quali?cation.Contractor understands and acknowledges that if it violates this non-discrimination provision and fails to cure such violation to the satisfaction of the EEOC or state agency having Comprehensive Solid Waste Collection Agreement Page 30 Page 92 of 201 jurisdiction,including without limitation,compliance with all terms and conditions set forth in a settlement agreement,this Agreement may be tenninated by the City with thirty (30)days prior written notice. 10.6.Permits and Licenses Contractor shall secure all necessary business permits and licenses necessary to provide the Solid Waste services described herein.Contractor shall duly pay all applicable taxes, fees and charges incurred,including,but not limited to,license fees and all federal,state, regional,county and local taxes and fees,including income taxes,property taxes,permit fees,operating fees,business and occupation taxes,workers’compensation and unemployment bene?ts,surcharges of any kind that apply to any and all persons, facilities,property,income,equipment,materials,supplies or activities related to Contractor’s services provided under the Agreement. 10.7.Relationship of Parties The City and Contractor expressly acknowledge that the relationship between Contractor and the City shall at all times be as an independent contractor of the City.No agent, employee,servant or representative of Contractor shall be deemed to be an employee, agent,servant or representative of the City. 10.8.Bankruptcy If (i)Contractor makes any general arrangement or assignment for the bene?t of creditors;(ii)Contractor becomes a “debtor”as de?ned in 11 U.S.C.§101 or any successor statute (unless,in the case of a petition ?led against Contractor,the same is dismissed within ninety (90)days);or (iii)the appointment of a trustee or receiver to take possession of substantially all of Contractor’s assets,where possession is not restored to Contractor within ninety (90)days,the City may terminate this Agreement upon giving Contractor written notice thereof.In the event that any provision of this section is contrary to any applicable law,such provision shall be of no force or effect. 10.9.Right to Renegotiate or Amend The City shall retain the right to renegotiate this Agreement or negotiate an amendment based on subsequent changes in and to federal,state,county or city laws,regulations or policies that materially modify the terms and conditions of this Agreement,provided however,that the City may not modify the Rate Schedule or the terms by which service rates are determined.This Agreement may be amended,altered or modi?ed only by a written amendment,alteration or modi?cation,executed by authorized representatives of the City and Contractor. Comprehensive Solid Waste Collection Agreement Page 31 Page 93 of 201 10.10.Force Majeure 10.10.1 Force Majeure Events If any Force Majeure event occurs that is not in the direct control of Contractor and which results in a detrimental effect or a material hardship to Contractor in the performance of this Agreement,Contractor may request to make an adjustments to one or more of the Solid Waste service rates or other fees included in the Rate Schedule by providing written notice to the City together with an explanation of the need for such rate adjustments arising from such Force Majeure event.Contractor shall submit such written request not more than ninety (90) days and not less than sixty (60)days prior to the proposed effective date of the requested service rate change,and the City shall promptly consider such proposed rate change.If the City requires review of Contractor’s ?nancial or other proprietary information in conducting its rate review,at the request of Contractor, the City shall retain a third party to review such information at Contractor’s expense,provided however,that Contractor may require such third party to execute a commercially reasonable con?dentiality agreement.Any such additional ?nancial review costs shall be considered allowable business expenses for future rates adjustment purposes. 10.10.2 Force Majeure Occurrences of Non—Default Contractor shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if Contractor’s performance is prevented or delayed by acts of terrorism,acts of God including landslides,lightning,forest fires,storms,?oods,freezing and earthquakes,civil disturbances,wars, blockades,public riots,explosions,unavailability of required materials or disposal restrictions,governmental restraint or other causes,whether of the kind enumerated or otherwise,that are not reasonably within the control of Contractor (“Force Majeure”).If as a result of a Force Majeure event,Contractor is unable wholly or partially to meet its obligations under this Agreement,Contractor shall promptly give the City written notice of the Force Majeure event,describing it in reasonable detail.Contractor’s obligations under this Agreement shall be suspended,but only with respect to the particular component of obligations affected by the Force Majeure event and only for the period during which the Force Majeure event exists. 10.1 1.Illegal Provisions/Severability If any provision of this Agreement shall be declared illegal,void,or unenforceable,the other provisions shall not be affected,but shall remain in full force and effect. 10.12.Waiver No waiver of any right or obligation of either party hereto shall be effective unless in Comprehensive Solid Waste Collection Agreement Page 32 Page 94 of 201 writing,specifying such waiver,and executed by the party against whom such waiver is sought to be enforced.A waiver by either party of any of its rights under this Agreement on any occasion shall not be a bar to the exercise of the same right on any subsequent occasion or of any other right at any time. 10.13.Entirety This Agreement and the exhibits attached hereto represent the entire agreement of the City and Contractor with respect to the services to be provided under this Agreement.No prior written or oral statement or proposal shall alter any term or provision of this Agreement except as provided herein. WITNESS THE EXECUTION HEREOF on the day and year ?rst herein above written. BA DISPOSAL,INC.CITY OF PASCO %%4e%” Darrick Dietrich,President Matt Watkins,Mayor Ai?mwg? ebbie Clark,City Clerk Comprehensive Solid Waste Collection Agreement Page 33 Page 95 of 201 Exhibit A De?nitions Agricultural Processed Waste:“Agricultural Processed Waste”means any waste which consists exclusively of the remainder and residue of processed fruit or vegetables. Base Tonnage:“Base Tonnage”means the original 1,500 tons of solid waste services transported and removed by the Contractor to the City without any direct cost. Biomedical Waste:“Biomedical Waste”has the same meaning set forth in WAC 480-70-O41. Bulky Materials:“Bulky Materials”means bags,boxes,or bundles,or empty carriers,cartons, boxes,crates,etc.,or materials offered for disposal,all of which may be readily handled without shoveling (not loose,uncontained materials).Individual items shall not exceed two feet by two feet by ?ve feet (2’x 2’x 5’)in dimension,and not weight more than 65 pounds. Charge:“Charge”means a set ?at fee for performing a service.Or,the result of multiplying a rate for a unit times the number of units transported. City:“City”means the City of Pasco,Franklin County,Washington. City Service Area:“City Service Area”means the current corporate limits of the City, excluding only those areas for which a different Solid Waste collection company is providing Solid Waste service pursuant to a pre-existing franchise or permit. Commercial Customer:“Commercial Customer”means all non—Residential Customers, including but not limited businesses,institutions,governmental agencies,and all other users, including occupants of Residences,Mobile Home Parks,Multi-Family Complexes and Mixed- Use Buildings,of commercial-type Solid Waste collection services. Compactor Disconnect/Reconnect Charge:“Compactor Disconnect/Reconnect Charge”means a ?at fee established by the solid waste collection company for the service of disconnecting a compactor from a drop box or container before taking it to be dumped,and then reconnecting the compactor when the drop box or container is returned to the customer’s site. Container:“Container”means any Detachable Container,Drop-Box Container,or wheeled cart owned and provided by Contractor. Contractor:“Contractor”means Basin Disposal,Inc. Curb or Curbside:“Curb"or “Curbside”means a location on a Residential Customer’s property within ?ve (5)feet of a Public Street or Private Road without blocking sidewalks, driveways or on-street parking. Comprehensive Solid Waste Collection Agreement,Exhibit A Page 1 Page 96 of 201 Customer:“Customer”means all entities or persons required to utilize Solid Waste services within the City Service Area,including property owners,property managers and tenants,or as otherwise defined in Pasco Municipal Code Chap.6.04. Detachable Container:“Detachable Container”means a watertight metal or plastic Container equipped with a tight-?tting cover,capable of being mechanically unloaded into a collection vehicle,and that is not less than one and a half (1.5)cubic yards or greater than eight (8)cubic yards in capacity. Drop-Box Container:“Drop-Box Container”means an all-metal Container with ten (10)cubic yards or more capacity that is loaded onto a specialized collection vehicle,transported to a disposal or recycling site,emptied and transported back to the Customer’s site. Exercise Date:“Exercise Date”means the date that the City counter signed the Contractor’s proposal that the City requested under section 5.5 (Recyclable Materials and Green Waste)of this contract. Gate Charge:“Gate Charge”means a ?at fee charged for opening,unlocking,or closing gates in order to pick up solid waste. Garbage:“Garbage”means all putrescible Solid Waste. Hazardous Waste:“Hazardous Waste”means any substance that is: A.De?ned as hazardous by 40 C.F.R.Part 261 and regulated as Hazardous Waste by the United States Environmental Protection Agency under Subtitle C of the Resource Conservation and Recovery Act (“RCRA”)of 1976,42 U.S.C.§6901 et seq.,as amended by the Hazardous and Solid Waste Amendments (“HSWA”)of 1984;the Toxic Substances Control Act,15 U.S.C.§2601 et seq.;or any other federal statute or regulation governing the treatment,storage,handling or disposal of waste imposing special handling or disposal requirements similar to those required by Subtitle C of RCRA. B.De?ned as dangerous or extremely hazardous by Chapter 173-303 WAC and regulated as dangerous waste or extremely Hazardous Waste by the Washington State Department of Ecology under the State Hazardous Waste Management Act,Chapter 70.105 RCW,or any other Washington State statute or regulation governing the treatment,storage, handling or disposal of wastes and imposing special handling requirements similar to those required by Chapter 70.105 RCW. C.Hazardous Waste shall not include any materials de?ned as Household Hazardous Waste. Household Hazardous Waste:“Household Hazardous Waste”has the same meaning set forth in RCW 70.102.010(2),together with any applicable regulations promulgated by the Washington Department of Ecology pursuant thereto. Loose Material:“Loose Material”means material not set out in bags or containers,including materials that must be shoveled. Comprehensive Solid Waste Collection Agreement,Exhibit A Page 2 Page 97 of 201 Mixed Paper:“Mixed Paper”means magazines,junk mail,phone books,bond or ledger grade paper,cardboard,paperboard packaging,paper cups and other ?ber-based materials meeting industry standards,but excluding tissue paper,paper towels,food-contaminated paper or paper packaging combined with plastic,win;and foil. Mixed-Use Building:“Mixed-Use Building”means a structure inhabited by both Residential and Commercial Customers. Mobile Home Park:“Mobile Home Park”shall mean a parcel of land which has been planned, improved or is currently used for the placement of mobile homes and contains more than one (1) mobile home lot.Mobile Home Parks shall be billed collectively for collection service. Multi-Family Complex:“Multi-Family Complex”means a multiple-unit Residence with three or more attached units and billed collectively for collection service. Packer:“Packer”means a device or vehicle specially designed to pack loose materials. Pass Through Fees:“Pass Through Fees”means a fee collected by a solid waste collection company on behalf of a third party when the fee is billed directly to the customer without markup or markdown. Permanent Service:“Permanent Service”means Container and drop-box service provided at the customer’s request for more than 90 days. Private Road:“Private Road”means a privately owned and maintained right of way or access easement that allows for access by a service vehicle and that serves multiple Residences. Public Street:“Public Street”means a public right-of-way or easement maintained by the City, County or the State and used for travel by the public. Rate:“Rate”means a price per unit or per service.A rate is multiplied times the number of units or services. Recyclable Materials:“Recyclable Materials”means materials consisting of aluminum cans and foil;corrugated cardboard;tin cans;recyclable plastic containers that did not contain Biomedical Waste,Hazardous Waste or Household Hazardous Waste;Mixed Paper;newspaper; and such other materials that the City and Contractor may detemiine from time to time to be recyclable and are otherwise consistent with all applicable ordinances or comprehensive solid waste plans of the City,if any. Residence/Residential:“Residence”or “Residential”mean a living space,with a kitchen, individually rented,leased or owned. Residential Cart:“Residential Cart”means a 64-or 96-gallon wheeled cart suitable for deposit, storage and collection of Solid Waste. Comprehensive Solid Waste Collection Agreement,Exhibit A Page 3 Page 98 of 201 Residential Customer:“Residential Customer”means all Customers residing in a Single- Family Residences. Service Accord:“Service Accord”means limited services that the Contractor agrees to provide to The City as described in Exhibit “E” Single-Family Residence:“Single-Family Residence”means all one-unit houses,each living unit of a duplex if billed individually,and mobile homes that are billed for collection service individually and located on a Public Street or Private Road,and not part of a Mobile Home Park. Solid Waste:“Solid Waste”shall have the same meaning set forth in RCW 70.95.030,but shall not include Biomedical Waste,Hazardous Waste or Household Hazardous Waste.If and when the City permits a separate collection service for Recyclable Materials and Green Waste at City’s request or under the jurisdiction of the WUTC,Recyclable Materials and Green Waste shall be deemed to be separate categories of Solid Waste where expressly provided in this Agreement. Special Pickup:“Special Pickup”means a pick-up requested by the customer at a time other than the regularly scheduled pick-up time,that requires the special dispatch of a truck.If a special dispatch is required,the company will assess time rates established in the Contractor’s Exhibit. Solid Waste Unit:“Solid Waste Unit”means a receptacle made of durable,corrosion—resistant, nonabsorbent material that is watertight,and has a close-?tting cover and two handles,or is a bag,box,or bundle that contains Solid Waste.A Solid Waste Unit can hold no more than thirty- two gallons or four cubic feet of Solid Waste,and weigh no more than 65 pounds when ?lled.In addition,a Solid Waste Unit shall not exceed two feet by two feet by five feet (2’x 2’x 5’)in dimension. Unlocking:“Unlocking”means a ?at fee imposed by a solid waste collection company when the company's personnel must unlock padlocks or other locking devices to perform pickup services. WUTC:“WUTC”means the Washington Utilities and Transportation Commission. Comprehensive Solid Waste Collection Agreement,Exhibit A Page 4 Page 99 of 201 Exhibit B City Service Area n 3 C E 33 City of Pasco City Limits 2015 Comprehensive Solid Waste Collection Agreement,Exhibit B Page 1 Page 100 of 201 30-Oet-l5 Index Index Item 5 Item 40 Item 45 Item 50 Item 51 Item 53 Item 70 Item 80 Item 100 Item 100 Item 150 Item 160 Item 200 Item 205 Item 207 Item 21 0 Item 230 Item 240 Item 240 Item 255 Item 260 Item 270 Exhibit C Rate Schedule Page Index of Items Index by Item Index by Topic Application of Rates -Taxes Material Requiring Special Equipment,Precautions,or Disposal Material Requiring Special Testing and/or Analysis Retumed Check Charges Restart Fees New Customer Prepayrnents Return Trips Carryout Service Residential Can/Unit Service,Curbside Recycling,Greenwaate Service Residential Can/Unit Service,CurbsideRecycling,Greenwaste Service Loose and/or Bulky Material Time Rates Application of Detachable Container and/or Drop Box Rates -General Roll—OutCharges -Residential Carts and Detachable Containers Excess Weight -Rejection of Load,Overweight Charges to Transport Washing and Sanitizing Residential Cans,Detachable Containers and Drop Boxes Disposal Fees Container Service -Non-compacted Cart Container Service -Non-compactedContainer Container Service -Compacted -Customer-owned Container Drop Box Sen/ice -Non-Compacted -Company—OwnedDrop Box Drop Box Service -Compactcd -Company-Owned Drop Box Comprehensive Solid Waste Collection Agreement,Exhibit C Page 1 assess;::ms:sww«mmm»m»w~Lg Page 101 of 201 30-Oct-1 5 Page 3 Index of Topic Item No ?g; Index by Item ...2 Index by Topic 3 Bulky Material 1 50 11 Carryout service‘80 8 Detachable Container service,compacm 255 21 Detachable Container service,non-compacted,240 18 Detachyable Containers and/or Drop Boxes,availability 200 13 Detachable Containers and/or Drop Boxes,general rules 200 13 Detachable Containers and/or Drop Boxes.washing and sanili?ng 210 16 Prepayrnents.53 6 Disposalfees.230 17 Drop-box service,Cornpacted,270 23 Drop-Box service,Non-Compacled,.,.,260 22 Excess Weight -Rejection of Load,Overweight Charges to Transport..207 15 Residential Service .100 9 Restart Fees.5|5 Return Trips 70 7 Roll-out charges...205 14 Time mtes..160 l2 Comprehensive Solid Waste Collection Agreement,Exhibit C Page 2 Page 102 of 201 30-Oct-15 Page 4 Item 5 Item 5 --Agglication of Rates —Taxes Entity imposing:-ax:Description Amount of tax:Amalication(Commodities) Cityof Pasco Pasco Utili?Tax 8.50%AgulicalaleCustomers -Revenue State of Washggton WA Solid Waste Tax 3.60%Applicable Customers -Revenue Note 1:The rates defined within this Exhibit C include the Pasco Utility Tax of 8.5%. Note 2:The Washington State Solid Waste Tax will be applied as a line item to the rates as de?ned within this Exhibit C. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 3 Page 103 of 201 30-Oct-15 Items 40,45,50 Item 40 ~—Material Reguiring Sp_eciaI Quipment,Precautions,or Dismsal Transportation of solid waste requiring special equipment or precautions in handling or disposal will be subject to Time Rates named in Item 160,or to other speci?c rates contained in this appendix. Contractor will make every effort to be aware of the commodities that require special handling at the disposal sites,The Contractor shall maintaina list of those commoditiesand make it available for public inspection at the Contractors office Item 45 -4 Material Reguiring Sgcial Testing and/or Analysis When the Contractor or disposal facility determinesthat testing and/or analysis of solid waste is required to determine whether dangerous or prohibited substances are present,the actual cost for such testing and/or analysis will be paid by the customer.At the Contractors election,they may help provide the customer with testing and/or analysis of the dangerous or prohibited substance.If the Contractor elects to help with the testing and analysis,these costs will be passed through In the customer Item 50 --Returned Check Charges Returned Check Charge.Ifa customer pays with a check,and the customer's bank refuses to honor that check,the customer will be assessed a Return Check Charge in the amount of §”§§.0D. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 4 Page 104 of 201 30-Oct-15 Page Items 51 and 53 Item 51 --Restart Charge A Restart Charge will be assessed on all customers whose service is discontinued for non-payment and who subsequently reinstate services. Restart Charges are as follows: A Restart Charge of ?3.40 will be assessed to Residential Cart customers whose service is discontinued for non-payment.Please see Item 100. A Restart Charge of $43.40 will be assessed to Detachable Container customers whose service is discontinued for nun-payment.Please see Item 240. A Restart Charge of §43.40 will be assessed to Drop Box customers whose service is discontinued for non-payment.Please see Item 260. Item 53 --Prepaments for Residential,Commercial,Drop Box and Temporag Customers A Prepayment of $5.00 will be assessed to all first time (new)Residential Customers. The prepayment will be applied to the customer's account in the event of non-payment,after one year of service,or be returned to the customer upon tamitiation of the residential service.Please see Item 100. A Prepayment is equal to the first month‘:cost of service,and will be assessed to all first time (new)Commercial Customers.The prepayment will be appliedto the customer's account in the event of non-payment,after one year of service,or be returned to the customer upon termination of the commercial service.Please see Item 240 &255. A Prepayment of_$250.00 will be assessed to first time (new)Drop Box Customers. The prepayment will be applied to the customer's account in the event of non-payment,a?er one year of service,or be returned to the customer upon terrninatiori of the Drop Box service.Please see Item 260 &270. A Prepayment will be assessed for each given Temporary Service,and will be assessed at the time the customer signs up for the Temporary Service.The Prepayment will be appliedto the customer's account upon termination of the Temporary Service.Please see Items 240 &260 Comprehensive Solid Waste Collection Agreement,Exhibit C Page 5 Page 105 of 201 30-Oct-1 5 Page 7 Item 70 --Return Trigs When the Contractor is required to make a Return Trip,that does not require the special dispatchof a truck,to pick up material that was unavailable for collection for reasons under the control of the customer,the following additional charges,per pickup,will apply: Tvg ut‘Container Return Trig Charge Residential Cart (Senior only),64 gallons ...........r,3 11.00 Residential Cart,96 gallons .............$11.00 Detachable Container (Container).............S 21.85 Comprehensive Solid Waste Collection Agreement,Exhibit C Page 6 Page 106 of 201 30-Oct-15 Page 8 Item 80 Item 80 -—Carrv—OutService Contractor will assess the following additional charges when customers request that Contractor personnel provide Carry-Out Service of Residential Cans/Units not placed at the curb,the alley,or other point where the Contractor's vehicle can be driven to within ?ve feet of the Residential Cans/Units using improved access roads commonly available for public use.Driveways are not considered improvedaccess roads commonlyavailable for publicuse. Cara-Out Charge Commercial Rates Per Unig Per Pickup 64 or 96 gallon Cart 5 3.25 that must be carried auxaver 5 feet,but not over 25 jeet. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 7 Page 107 of 201 30-Oct-15 Page 9 Item 100 Item 100 --Residential Service —-Monthy Rates gcontinued on next gage! Rates below apply in the followingservice area'City of Pasco Number of Frequency Garbage Recycle Greenwaste Units or Type 411‘Service Service Service of Residential Carts Service gg ,R_2_te Q (1)64 gallon Residential Qrt (Senior/Low Income Only)WG $9.22 #N/A #N/A (1)96 gallon Residential Cart WG 3 18.45 #N/A #N/A (1)MulLiFamily/Duplex 96 gallon ResidentialCart WG $18.45 #N/A #N/A Each Additional96 gallon ResidendalCan WG $1.90 #N/A #N/A Frequency of Service Codes:WG=Week1yGarbage;NA=Service is not available at this time Comprehensive Solid Waste Collection Agreement,Exhibit C Page 8 Page 108 of 201 30-Oct-15 Note l: Note 2: Note 3: Note 4: Note 5: Note 6: Note 7: Note 8: Page 10 Tue of service Q Prepayment Charge $35.00 Restart Charge $43.40 Return Trip Charge as 1 1.00 Carry Out Service-up to 25 feet $3.25 Replacement Cart Charge S 8500 Return Check Charge $35.00 Freon DischargeCharge {/417171iances)$35.00 Passenger Tire Charge $5.00 Truck Tire Charge $10.00 A Prepayment Charge ofwill be assessed to a first time (new)Residential Oistomers. The prepayrrlem will be applied to the customers account in the event of noirpayrnent,after one year of service.or be retumed nothe cusmmerupon Lenmnationof the residentialservice,Please see Item 53. A Restart Charge will be assessed on all customers whose service is discontinued for non-payment and who subsequently reinstate services.Please see Item 51 . If the customer requests the Contractor to make a Return Trip Charge due to no fault of Contractor,Contractor shall be permitted to charge the Customer a Return Trip Charge Please see Item 70 Contractor will assess additional charges (Item 80)when customers request that Contractor personnel provide Carr_v—O|ItService of Residential Cans/Units not placed at the curb,the alley,or other point where the company:vehicle can be drivm to within five feet of the Residential Cans/Units using improved access roads commonly available for public use Driveways are not considered improved access roads commorilvavailable for nublic use. Ifany customer who destroys a Cart,does not return the Cartupon tennination,or service is shut off for non-payment and they refuse to surrender the Cart a Replacement cm Charge will be charged If a customer pays with a check,and the customers bank refuses to honor that check,the customer will be assessed a Return Check Charge. If a customer requests Contractor to pick up any appliance that comains Freon the customer will be charged a From:Discharge Charge. If a customer disposes of more than 4 passenger car tires,with or without rims,the Contractor will charge an additional Passenger or Truck Tire Charge. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 9 Page 109 of 201 30-Oct-15 Page 11 Item 150 Item 150 --Units,Bully Material &Aggliauceg,Furniture Minimum Charge Rate Per PlCl(l.I2 Solid Waste Umt $3.80 per unit N/A Bulky Materials S 14.15 per L-ubicyard S 1415 Appliances,Fumimre Items 3 14.15 perilem $14.15 Freon Discharge Charge 3 35.00 per item N/A Note 1:"Solid Waste Units"and "Bulky Materials"charges only apply when items are not properly containedfor collectnm as defined in section 5.1.1 of die contract Please see below refexenced Notes 2 and 3 for definition of sizes and containment of solid waste and bulky items. Note 2:"Bulky Materials"means begs,boxes,or bundles;or empty can-lets,cartons,crates ormatexials offered for disposal all of which may be readily handledwithout shoveling (not loose,uncontained materials)Individualitems shallnot exceed two feet by two feet by five feet (2'X 2’X 5')in dimension, and not weigh more than 55 pounds. Note 3."Solid Waste Unit"is defined in the Comprehensive Solid Waste Agreement,but generally means any mdividualreceptacle,can,plastic bag,cart,box,carton,or othez container that does not hold more than 32 gallons or 4 cu R of solid waste.and which does not weight more than 55 pounds when filled. Note 4:Appliances will be charged at the per item rate noted above.Lfthe Appliance has Freon, the Freon Disclmrge Charge will also be applied Comprehensive Solid Waste Collection Agreement,Exhibit C Page 10 Page 110 of 201 30-Oct-15 Page 12 Item 160 Item 160 --Time Rates When time rates apply.Time Rates named in this Item apply: (a)When material must be taken to a special site for disposal; (b)When the Contractor's equipment must wait at or return to,a customer's site to provide scheduled service due to no disability,fault,or negligence on the part of the company.Actual waiting time or time taken in retuming to the site will be charged for;or (c)When a customer orders a single,special,or emergency pickup,or when other items in this tari?‘ refer to this Item. How rates are recorded and charged.Time must be recorded and charged for to the nearest increment of 15 minutes.Time rates apply for the period from the time the Contractors vehicle leaves the terminal,until it returns to the terminal,or when it leaves its prescheduled route and drives towards the Customer's site, excluding interruptions.An interruption is a situation causing stoppage of service that is in the control of the company and not in the control of the customer.Examples include:work breaks,breakdown of equipment, and similar occurrences. Disposal fees in addition to time rates.Item 230 Disposal Fees for the disposal site or facility used will apply in addition to time rates. Rate Per Hour Each Extra Minimum T e of ui merit ordered Truck and Driver Person Charge Single rear drive axle:$60.00 $40.00 S 4000 Tandem rear drive axle:$95.00 $47.50 S 47.50 Comprehensive Solid Waste Collection Agreement,Exhibit C Page 11 Page 111 of 201 30-Oct-15 Page 13 Item 200 Item 200 ~-Detachable Containers and/or Drop Boxes --General Rules Availability.Contractor must maintain a supply of all sizes of Containers and Drop Boxes for which rates are listed in this Appendix.Ifa customer requests a Container or Drop Box of a size listed in the Contractor's Appendix,and the Contractor is unable to provide the requested size within 7 days of the customer request,the customer must be noti?ed in writing or by telephone. Alternate-sized Containers and/or Drop Boxes.Ifthe Contractor cannot provide the requested- sized Container or Drop Box (and that size is listed in this exhibit),the Contractor must provide altemate-sized Containers or Drop Boxes,sufficient to meet the capacity originallyrequested by the customer,at the same rates as would have applied for the requested Container or Drop Box. Disposal fees due on alternatevsized Drop Boxes.Ifthc Contractor provides altemate-sized Drop Boxes,the customer is responsible for all applicable disposal fees resulting from t.heuse of the alternate Drop Boxes Rates on partially-filled Containers and/or Drop Boxes.Full pickup and rental rates apply regardless of the amount of waste material in the Container or Drop Box at pickup time. Rates for compacted materials.Rates for compacted material apply only when the material has been compacted before its pickup by the Contractor (See Section 4.25 of Contract). Rates for loose material.Loose material dumped into the Contractor's packer truck is subject to the rates for nomcompacted material even though the material may be compacted later in the packer truck Permanent and Temporary Service.The following rules apply: (a)lfa customer requests a Container or Drop Box for less than 90 days,the customer will be billed at Temporary Service rates. (b)lfa Temporary Service customer notifies the Contractor that it has decided to retain the Container or Drop Box for more than 90 days,Permanent Service rates Wlll be assessed from the 91st day until the end of the period the customer retains the Container or Drop Box (0)Ifa customer requests a Container or Drop Box for more than 90 days,the customer will be billed under permanent rates.lfthat customer cancels service before the end of the 90-day period, the company may not rebill the customer at Temporary Service rates.The intent of the customer at the time service was requested applies. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 12 Page 112 of 201 30-Oct-15 Page Item 205 Item 205 --Roll-Out Charge,and Gate Charge Charges for Carts and Containers The Contractor will assess Roll-Out Charges where,due to circumstances outside ofthe control of the driver,the driver is required to move the Cart or Container more than ?ve (5)feet,but less than twenty-?ve (25)feet in order to reach the truck. The charge for this Roll-Out Charge is: $.25 per Cart or Container,per pickup The Contractor will assess a Gate Charge where the driver is required to unlock a container,locking bar,enclosure or open a gate in order to access a Cart or Container. The charge for this Gate Charge is: $325 per pickup Comprehensive Solid Waste Collection Agreement,Exhibit C Page 13 14 Page 113 of 201 30-Oct-15 Page 15 Item 207 Item 207 ~Excess Weight -—Rejection 0!‘Load,Charges in Transport The Contractor reserves the right to reject pickup of any DetachableContainer,stationary packer,or Drop Box which, upon reasonable inspection: (1)Appears to be overloaded (2)Would cause applicable vehicle load Limitatiomto be exceeded; (3)Would cause the company to violateload limitationsor result in unsafe vehicle operation; (4)Would negatively impact or otherwise damage road surface integrity;and/or (5)Contains anything that appears not to be MSW or could do damage to the vehicle. For the purposes of this Appendix the followingmaximumweighis apply Typelsize of Maximum Weight Container,Drop Box,Allowance per or Cart Becegcle [in pounds} Carts -64 Gallon 120 lbs Carts -95 Gallon 180 lbs Detachable Containers —l to 8 cu yds 1,20)lbs Drup Boxes -All Sizes 20,000 lbs Over?lled or overweight,charges if transported.If the Container,Drop Box,or Cart exceedsthe limis stated above,is ?lled beyond the marked ?ll line,or the top is unable to be closed,but the Coriu-actortransports the materials,the following additionalcharges will apply TypeISize of Container,Drop Box, gr Cart Chage Carts -All Sizes §i00 Per Pickup Detachable Container ~1 to 8 cu yds §14.1S Per Yard Drop Boxes —All Sizes 514.15 Per Yard Cumpacted material $8.30 Per Yard Comprehensive Solid Waste Collection Agreement,Exhibit C Page 14 Page 114 of 201 30—Oct-15 Page Item 2 l 0 ts 210 --Waslzi and ni i eiachable Containers and]r Boxes Upon customer request,the Corlmacmr will provide washing and sarlitizing serviceat the following rates: Size or Type of Container or DronBox E Steam Cleaning -Delachable Col-nainer 3 40.50 Steam Cleaning -Drop Box $100.50 Note 1:The rate for washing and sanitizing Detachable Containers and Drop Boxes includes the fee for delivering the newly cleaned Detachable Container or Drop Box back to the custolnefs location Comprehensive Solid Waste Collection Agreement,Exhibit C Page 15 16 Page 115 of 201 30-Oct-15 Page Item 230 Item 230 ~-Disposal Fem Charges in this item apply when other items in this Appendix speci?cally refer to this item. Type of Material Fee for Disposal MSW $44.31 Green Waste #N/A Commingled Recycle #N/A Note 1:The DisposalFee includes the Pasco Utility Tax of 8.5% Comprehensive Solid Waste Collection Agreement,Exhibit C Page 16 Page 116 of 201 30-Oct-15 Page Item 240 Item 240 —-Commercial Cart Service —~Dumped in Cnmpany‘s Vehicle Nomcompacled Material Rates stated per Commercial Cart per month Service Area:City of Pasco Size or Type ol'Container Permanent Service 64 Gal Cart 96 Gal Curl Pickup .One Time per Week $21.70 $40.15 Pickup -Two Times per Week 3 43.40 $30.30 Special Pickups 3 16.00 $2027 Additional Pickup $5 00 $9.27 Return Trip Charge $11.00 $11.00 Restart Charge $43 40 $43 40 Temporag Service Delivery $11.00 $11.00 Pickup Rate 3 7.00 $12.97 Rent Per Calendar Day $5.50 $5.50 Prepayment 3 35.00 $35 00 Note]:Permanent Service:Service is de?ned as no less than scheduled,every week pickup, Customer will be charged for service requested,even if fewer containers are serviced on a particular trip.No credit will be given for partially-filled containers. Note 2'Permanent Service‘A Prepayment of $35.00 will be assessed to all first time (new)Commercial Customers.The Prepayment will be applied to the customers account in the event ofnon-payment,a?er one year of service,or be returned to the customer upon termination of the commercial service. Note 3:Special Pickup is the Bach Addt‘l Pickup rate plus Item 70 Return Trip -Carts. Note 4:Restart subject to Item 51 —Restart Charges Note 5:A Prepayment will be assessed on Temporary Service accounts as noted above. Accessorial Charges gllds,unlocking,unlalcliing,etc.) Note 5: Note 7' A Gate Charge of $3.25 will be assessed on each pickup where the driver is required to unlock a container,locking bar,enclosure or open a gate in order to access a Cart or Container. A Return '1‘rip Charge of?li will be assessed when the company driver is required to make a return trip,that does not require the special dispatch of a truck,to pick up a Can or material that was unavailable for collection for reasons under the control of the customer. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 17 18 Page 117 of 201 30-Oct-l 5 Page 19 Item 240 Item 240 ——Detachable Container Service -~Dumped in Company's Vehicle (continuedi Non-compacted Material Rates stated per Detachable Container,per month Service Area:City of Pasco Size or Type of Container Permanent Service 15 Yard 2 Yar 3 Yard 4 Yard 6 are!8 Yard Pickup -One Time per Week S 110.00 S 130 00 S 150 00 $185.00 $235.00 $300 00 Pickup -Two Times per Week 5 212.00 $250 00 3 290.00 $365.00 Si 465.00 $585.00 Pickup -Three Times per Week 3 320.00 S 375.00 3 435.00 $540.00 S 69000 $880.00 Pickup »Four Times per Week 3 425.00 S 495.00 $570.00 S 705.00 $910.00 5 1,150 00 Pickup -Five Times per Week $520.00 S 610.00 $705.00 $870.00 $1,140.00 $1,425.00 Special Pickups $47.24 S 51.85 $56.47 $64.55 $76.08 $9109 Additional Piclcup S 25 39 $30.00 S 34.62 $42.70 $54.23 $69.24 Retum Trip Charge $21.85 $21.85 $21.85 $21.85 3 21.85 $21.85 Restart Charge $43.40 S 43 40 $43.40 5 43.40 $43.40 $43.40 Temporary Service 1 Delivery #N/A #N/A S 21.85 3 21.85 $21 85 $21.85 Pickup Rat/e #N/A #N/A $55.25 $65.25 $80.25 S 100.25 Rent Per Calendar Day #N/A #N/A $5.50 $5.50 S 5.50 $5.50 Prepayment #N/A #N/A 35125.00 5 125.00 S 125.00 $125.00 Notel:Permanent Service:Service is defined as no less than scheduled,every week pickup. Customer will be charged for service requested,even if fewer containers are serviced on a particular trip.No credit will be given for partia1ly»fi1led containers. Note 2:Special Pickup is the Each Addt'l Pickup rate plus Item 70 Return Trip -Container Note 3:Restart subject to Item 51 -Restart Charges Note 4:Permanent Service:A Prepayment is equal to the first month's cost of service,and will be assessed to all first time (new)Commercial Customers.The prepayment will be applied to the customer's account in the event of non-payment,after one year of service, or be returned to the customer upon tenninationof the Commercial Service Please see Items 240 and 255. Note 5:A Prepayment will be assessed on Temporary Service accounts as noted above. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 18 Page 118 of 201 30-Oct-l 5 Page 20 Item 240 Accessorial Charges [lids unlocking,unlatching,elc.)_ Note 6.A Gate Charge of $3.25 willbe assessed on each pickup where the driver is required to unlock a container,lockingbar,enclosure or open a gate in order to access a Caxtor Container, Note 7:A Return Trip Charge of SLSS will be assessed when the company driver is required to make a return trip,that does not require the special dispatch of a truck,to pick up 3 Container or materialthat was unavailable for collectionfor reasons under the control of the customer. Note 8:If customer requires a Loeking Container,21 one time fee of $95.00 will be assessed. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 19 Page 119 of 201 30-Oct-15 Page 21 Item 255 Item 255 ~-Detachable Container Service ~Dumgd in CommnfsVehicle Compacted Material Rates stated per Detachable Container,per onth Service Area:City of Pasco Size or Type of Container Permanent Service 2 Yard 3 Yard 4 Yard 6 Yard Pickup —One Time per Week S 170.35 $205.35 $250.35 S 325.35 Pickup -Two Times per Week $340.70 $410 70 3 500.70 $650.70 Special Pickups S 61.19 8 69.27 S 79.67 3 9699 Additional Pickup $39 34 S 47.42 $57.82 $75.14 Return Trip Charge $21.85 $21.85 $21.85 39 21.85 Restart Charge $43 40 $43.40 3 43.40 5 43.40 Note 1:Permanent Service:Service is defined as no lessthan scheduled,every week pickup. Customer will be charged for service requested,even if fewer containersare serviced on a particular trip.No credit will be given for partially-?lled containers. Note 2:Special Pickup is the Each Addrl Pickup rate plus Item 70 Return Trip -Container, Note 3'Restart subject to Item 51 ~Restart Charge. Note 4:Permanent Service:A Prepayment is equal to the first months cost of service,and will be assessed to all first time (new)Commercial Customers.The prepayment will be applied to the customer's account in die event ofnon-payment,after one year of service, or be returned to the customer upon termination of the Commercial Service Please see Items 240 and 255. Atcessurialcharges assessed(‘Q,gnlocldng,uglatching,etc] Note 5:A Gate Charge of $3.25 will be assessed on each pickup where the driver is required to unlock a container,locking bar,enclosure or open a gate in order to access a Cart or Container. Note 6:A Return Trip Charge of $11.85 will be assessed when the company driver is required to make a return trip,that does not require the special dispatch of a truck,to pick up a Cart or Container or material that was unavailable for collection for reasons under the control nf the nictnmar Note 7 A Disconnectflieeonneet Fee of $3.25 per pickup will be assessed when Containers are attached to a compactor that requires disconnecting or reconnecting. Comprehensive Solid Waste Collection Agreement,Exhibit C Page 20 Page 120 of 201 30-Oct-15 Page 22 Item 260 Item 260 mp Box Service —»To Disposal Site and Return N on-Com patted Material Rates stated per Drop Box,per pickup Service Area.City of Pasco Permanent Service Delivery Charge Haul Charge Trip Charge Iv?nimumMonthly Charge Prepayment Restart Charge Size or Type of Container ll Yard/15 Yard 20 Yard 30 Yard 40 Yard 50 Yard 55.00 55.00 3 55.00 $55.00 S 5500 140.00 145.00 $150.00 $160.00 $170.00 55.00 55.00 $55.00 $55.00 3 55.00 140.00 145.00 $150.00 $160.00 $17000 3000 250.00 $250.00 S 250.00 $250.00 43.40 43.40 $43.40 S 43.40 $43.40 esaaeameneeesaaeaeeeam Temporary Service Delivery Charge Haul Charge Trip Charge Daily Rental Charge Prepayment Note 1: Note 2: Note 3. Note 4: Note 5. Note 6: 55.00 140.25 55.00 7.50 50.00 55.00 S 55.00 $55.00 3 55.00 145.25 $150.25 $160.25 S 17025 55.00 $55.00 $55.00 S 55 00 7.50 $7.50 S 7.50 S 7.50 250.00 3 250.00 $250.00 S 250.00 eeweneaeaasegmuam Rates in this item are subject to Disposal Fees named in Item 230. Temporary Service.means providing Drop Box service at the customers request,for a period of ninety days or less. Permanent Service:means Drop Box service provided at customers request for more than 90 days. For Pennanent Service accounts,if a Drop Box is retained by a customer for a full month and no pickups are ordered,a Minimum Monthly Charge will be assessed Restart subject to Item 51 —Restart Charge -Drop Box. Rates named in this item apply for all hauls within the City Limits of Pasco,to the disposal site Any miles driven outside t.he City limits of Pasco will be charged for at§.25 per mile.Mileage Charge is in addition to all regular clmrges. A Prepayment will be assessed on Temporary Service accounts as noted above. Accessurial charges assessed {lids}unlocking,unhtchlng,eIc.)_ Note 7: Note 8. A can Charge or 33.25 will be assessed on each pickup where the driver is required to unlock a container,locking bar,enclosure or open a gate in order to access 2:Cart or Container. A Trip Charge of S§.00 will be assessed when the company driver makes a trip to the customers location,but.due to reasons under the control of the customer,was not able to complete the haul Comprehensive Solid Waste Collection Agreement,Exhibit C Page 21 Page 121 of 201 30-Ocl—15 Page 23 Item 270 item 270 --Drag Bax Se?ice --To Disposal and Relgrll Compacted Material Rates stated per Drop Box,per pickup Service Area:City of Pasco Sin or Type of Container Permanent Service 15 Yd 20 Yd 20 Yd 30 Ydl35 Yd 40 Yd Delivery Charge $55.00 $55.00 $55.00 3 55.00 $55.00 H.aulCl1a.rge $165.00 $155.03 $165.00 3 l55.00 5 165.00 Trip Charge $5500 $55.00 $55.00 3 55.00 3 55.00 Prepayment $250.00 $250.(X)$250.00 $250.00 $250.00 Restart Charge $43.40 3 43.40 $43.40 $43.40 $43.40 Note 1.Rates in this item are subject to Disposal Fees named in Item B0. Nole 2:If a Drop Box is retained by a customer for a full month and no pickups are ordered, and the Drop Box is owned by the Contractor,a Monthly Charge will be assess ed. Note 3:Restart subject to hem 5]~Restart Charge -Drop Box Note 4;Rates named in this item apply for all hauls within the City Limils of Pasco,to the disposal site. Any miles driven oumide the City limits of Pasco Wl.iibe charged for at $.25 per mile.Mileage Charge is in addition to all regular charges. Accessorial cIza_rges ssessed gggds,unlocking,Imlatching,en.-.g Note 5: Note 6: Note 7' Note 8: A Gate Charge of 13.25 will be assessed on each pickup where the driver is required to unlock a container,locking bar,enclosure or open a gate in order to access a Can or Container A Compactor Disconnectlkeconnect Charge of §3.25 per haul will be assessed when Drop Boxes with compactors require connecting or disconnecting. A Turn Around Charge of 330,00per haul will be assessed when company driver has to mm the Drop Box around in order to empty and/or reconnect the Drop Box. A Trip Charge of $55.00 will be assessed when the company driver makes a trip to the customers location,but due to reasons under the control of the customer, was not able to complete the haul Comprehensive Solid Waste Collection Agreement,Exhibit C Page 22 Page 122 of 201 Exhibit D WACOD Adjustment Formula The following de?nitions apply to the calculation of the WACOD Adjustment: If the following is true: Change in Volume =(TONSCp-T0NSBp )/TONSB1»>=5% Then,the following calculation shall be made by the Contractor: WACOD Adjustment =WACOD Expense X WACOD Change The following de?nitions shall apply to the above formulas: O O C C C I C O O I I WACOD Expense =the proportion of approved rates attributable to gross Solid Waste disposal expense,hereby ?xed at %. WACOD Change =(WACODCp-WACODBP)/WACODBP WACOD”=MSWBPX TONSMsw.B}>+RCYBPX TONSRCY_Bp+GRNBPX TONSc,RN_ BP WACODcy=MSWcp X TONSMsw_cp +RCYCPX TONSRcY.cp +GRNcp X TONSGRN. City Planner TONSBP=TONSMSW»BP+T0NSRcY—B1=+TONSGRN-BP TONSCP=T0NSMsw.c1>+TONSRCY-CP+TONSGRN~CP MSW3p =Contractor’s disposal rate for Solid Waste during the Base Period TONSMsw.Bp =Volume of Solid Waste collected during the Base Period RCY];p =Contractor’s processing rate for Recyclable Materials during the Base Period TONSRCY_3p=Volume of Recyclable Materials processed during the Base Period GRNB1»:Contractor’s processing rate for Green Waste during the Base Period TONSGRN.];p =Volume of Green Waste processed during the Base Period MSWCp =Contractor’s disposal rate for Solid Waste during the Comparison Period ToNSMsw.Cp =Volume of Solid Waste collected during the Comparison Period RCYCP=Contractor’s processing rate for Recyclable Materials during the Comparison Period TONSRcy.cy =Volume of Recyclable Materials processed during the Comparison Period GRNcp =Contractor’s processing rate for Yard Waste during the Comparison Period TON SGRN.Cp=Volume of Yard Waste processed during the Comparison Period If the City has not added separate collection services for Recyclable Materials and/or Yard Waste during the Base Period,then the values for those respective variables representing the volume of such materials will be set to zero,and shall remain zero for the term of this Contract,i.e.: TONSRCY-BP=TONSGRN-Bl’=0 Comprehensive Solid Waste Collection Agreement,Exhibit D Page 1 Page 123 of 201 Until such time as the City adds separate collection service for Recyclable Materials and/or Yard Waste,the values for those respective variables representing the volume of such materials will be set to zero,i.e.: TONSRcy.c}>'—'TONSGRN.C1==0 In either case,the volume of the Recyclable Materials and Yard Waste shall be included in the measured volume of Solid Waste until such time as the City implements such separate collections services. Comprehensive Solid Waste Collection Agreement,Exhibit D Page 2 Page 124 of 201 Exhibit E Service Accord The Solid Waste Services that the Contractor will provide to the City at NO Direct Costs are as follows: (1)Solid Waste gathered by the City from alley clean-ups; (2)Solid Waste gathered by the City from street sweeping; (3)Solid Waste gathered by the City from sewer debris;and (4)Solid Waste gathered by the City and deposited in specially designated Drop-Box Containers supplied by Contractor. These Solid Waste Services at No Direct costs include hauling and tip fees.The Solid Waste Services at NO Direct Costs are limited to 1,500 tons (Base Tonnage)in any calendar year.See section 5.4 of the contract for more details. The eligible Solid Waste Service locations within the City are as follows: (1)The City Shop(s)1025 South Grey,Pasco,WA 99301 (2)The City Yard(s)Rd 108 and Crescent,Pasco,WA 9930] Comprehensive Solid Waste Collection Agreement,Exhibit E Page 1 Page 125 of 201 Exhibit F Fuel Surcharge City of Pasco 1 Base Fuel Expense Base Fuel Expense =5.87%Fixed 2 Percentage Increase in Cost of Fuel Current Fuel Price $3.79 Variable Minus Base Fuel Price -$3.79 Fixed Equals Fuel Price Difference =$-Variable Divided By Base Fuel Price (Line 6)+$3.79 Fixed Equals Fuel Percent Change =0.00%Variable Fuel Surcharge 3 Calculation Base Fuel Expense (Line 1)5.87% Multiplied By Percent Change in Fuel Price x - Fuel Surcharge 0.00% Comprehensive Solid Waste Collection Agreement,Exhibit F Page 1 Page 126 of 201 Exhibit G Curbside Recycling Provisions (Page intentionally left blank) Comprehensive Solid Waste Collection Agreement,Exhibit G Page 1 Page 127 of 201 Exhibit H Green Waste Recycling Provisions (Page intentionally left blank) Comprehensive Solid Waste Collection Agreement,Exhibit H Page 1 Page 128 of 201 Exhibit I Electronic Waste Collection Provisions (E-Waste) (Page intentionally left blank) Comprehensive Solid Waste Collection Agreement,Exhibitl Page 1 Page 129 of 201 PO.Box3850 Pasco.WA993023850 phone [509]5472476 fax 4509)5418617 July 18,2018 Stan Strebel Deputy City Manager 525 N 3“Ave 3”‘Floor Pasco,WA 99301 Dear Mr.Strebel: I hope this letter ?nds you in good health and spirits.It is time for the contractual rate adjustment based on the Consumer Price Index (CPI).Also for the turn of the year,we have two pass through adjustments from the Transfer station,owned and operated by Columbia Basin,LLC.(CBLLC). The contract specifies an Annual Rate Adjustment tied to the CPI (Section 6.3.1 on page 20),based on 80%of the West Urban CPI,size class B/C.We are once again utilizing June data.The 12 month percentage change is 3.2%;the adjustment factor is 2.56%(3.2%x .80 12.56%)to be applied to all rates defined in the contract.For your convenience,I am enclosing a copy of the proposed rates along with a copy ofthe CPI sheet. The second portion of the year’s rate adjustment comes from increased disposal expenses (Section 6.3.2 on page 21),CBLLC has notified that the disposal rates for Solid Waste (MSW)and Freon have increased.MSW has increased from $46.25 per ton to $49.00 per ton and Freon disposal has increased from $35.00 per unit to $54.64 per unit,a 6%increase and 56%increase respectively.The overall weighted average change for disposal expense is 2.05%when applied to all services with a disposal expense component. Combining the two contractually authorized changes,the overall change to garbage rates will be 4.4%, effective January 1,2019. We are most willing to meet with you for conversation on the topic of the rate adjustment and any other solid waste issues.Thank you for your attention in this matter,and please feel free to contact me at 509- 542-4957 or 509—547—2476,should you have any questions. I would also like to take the opportunity to thank you and the City Council of Pasco for allowing us to serve the Pasco City Residents. Sincerely, E? Dave Atwell Pricing Manager Basin Disposal,Inc. Enclosures Page 130 of 201 BASIN a/dc‘/com! CITY OF PASCO RATES EFFECTIVE 1I1I19 P.O.BOX.3850 Pasco,WA 993023850 phcnv (509)547 2476 fax (509)5473617 PER PER SPEC RESI I MULTI-FAMILY FEES MONTH PRORATE COMMERCIAL CAN FEES MONTH PRORATE PIU 96 GAL-EACH $20.53 $4.75 64 GAL -EACH $24.20 $5.59 $17.35 95 GAL ADDTL -EACH $2.12 $0.49 96 CAL -EACH $44.78 $10.54 $22.51 SENIOR 64 GAL —EACH $10.23 $2.37 EXTRA TTEMS-EACH $4.23 CARRY OUT 7 ROLL OUT -5'-25‘$14.72 $3.40 RESTART FEE (NONPAY ONLY)$45.40 RETURN TRIP CHARGE $11.51 CARRY OUTIROLL OUT AFTER 5 $14.72 $3.40 RESTART FEE (NONPAY ONLY)$45.40 OVERSIZEIOVERWETGHT CART $5.33 RESIDENTIAL DEPOSIT $35.00 RETURN TRIP CHARGE -PER UI $11.51 GATE CHARGE —PER MONTHIPl $14.72 $3.40 DAILY EXTRA YARDS 7 EACH $15.79 TEMP CARTS &SMALL CONTAINERS EACH RENT PRE-PAY COMMERCIALCAN DEPOSIT $35.00 TEMP CART DELIVERY FEE $11.51 PER SPEC EXTRA 64 GAL PER DUMP $7.81 $5.02 $35.00 PERM SMALL CONTAINERS MONTH PER PIU PIU PIU 96 GAL PER DUMP $14.47 $5.02 $35.00 1 50 YD 1X $122.70 $28.34 $52.59 $28 34 TEMP CONTAINER DEUVERY FEE $22.35 1 50 YD 2><$235.49 $54.62 3YD (4 x 4 1/2 x 5)$51.53 $5.02 $125.00 1 50 YD ax $355.97 $32.44 4m (4 x 6 x 5)$72.78 $5.02 $125.00 1 50 YD 4><$474.10 $109.49 GYD (5 x e X 5)$59.52 $5.02 $125.00 1 50 YD 5x $530.07 $133.97 aYD (5 x 5 X 7)$111.23 $5.02 $125.00 2 0 YD 1><$145.01 $33.49 $57.34 $33.49 RETURN TRIP CHARGE -CART $11.51 2 0 YD2x $278.88 $54.41 RETURN TRIP CHARGE -CONTAINER $22.35 2 0 YD 3x $415.32 $95.51 2 0 YD 4X $552.18 $127.52 2 0 YD 5x $530.45 $157.15 DROP BOXES PERM TEMP 3 0 YD TX $167.33 $33.54 $62.99 $38.64 PREPAY TEMP,DEPOSIT PERM $250.00 $250.00 3 0 YD zx $323.49 $74.71 TEMP DAILYRENT N/A $7.35 3 0 YD 3X $455.25 $112.07 DELIVERY FEE $57.54 $57.54 3 0 YD 4x $535.34 $145.35 MILEAGE »To OUTSIDE CTTYLIMTTS"$3.39 $3.39 PERM MO 3 0 YD 5x $735.45 $151.53 DUMP FEES.PER TON $55.52 $55.52 RENT 4 0 YD 1x $205.35 $47.55 $72.00 $47.55 11 YD &15 YD $146.47 $146.72 $145.47 4 0 YD 2x $407.15 $94.03 20 YD $151.70 $151.95 $151.70 4 0 YD 3x $602.38 $139.12 30 YD $156.93 $157.13 $155.93 4 0 YD 4x $735.45 $1231.53 40 YD $157.39 $157.54 $157.39 4 0 YD 5X $970.50 $224.13 50 YD $177.35 $173.11 $177.35 6 0 YD 1x $252.15 $50.54 $84.87 $60.54 RESTART FEE (NONPAY ONLY)$45.40 $45.40 $45.40 5 0 YD 2x $513.71 $119.79 GATE CHARGE -PER PICK UP $3.40 6 0 YD 3x $759.71 $177.75 TRIP CHARGE $57.54 5 0 YD 4x $1,015.12 $234.44 6.0 YD 5><$1,271.59 $293.59 COMPACTORS PERM a 0 YD 1x $334.55 $77.29 $101.51 $77.29 DELIVERY FEE (TF EDI OWNED)$57.54 3 0 YD 2x $652.58 $150 71 DUMP FEES,PER TON $56.52 5 0 YD 3x $931.55 $225.71 1545 YD COMP HAUL CHARGE $130.55 3 0 YD 4x $1,232.34 $295.27 RESTART FEE (NONPAY ONLY)$45.40 5 0 YD 5x $1,589.60 $357.11 MILEAGE »TO OUTSIDE CTTYLIMITS"$3.39 EXTRAYARDS -EACH $15.79 TRIP CHARGE $57.54 RETURN TRIP CHARGE —PER UI $22.55 DISCONNECT FEE PER PICK UP $3.39 COMMERCIALDEPOSIT 1 MONTH SERVICE TURN AROUND CHARGE $31.33 DEPOSIT PERM $250.00 PER SPEC EXTRA FRONT LOAD COMPACTORS MONTH PER PIU PIU PIU 2 0YD CDMP1X $190.02 $43.33 $55.74 $43.83 MISC ADDITIONAL CHARGES EACH MONTHLY 3 OYD COMP 1X $229.08 $52 91 $75.77 $52.51 EXTRAITEMS ~EACH (COMMERCIAL ONLY)$4.23 4 0 YD COMP 1x $279.27 $54.50 $37.35 $64.50 EIULKYITEMSIFURNITURE -EACH $15.75 5 0 YD COMP 1x $352.94 $83.82 $105.53 $33.32 REFRIGERATED APPLIANCES 4 EACH $54.55 EXTRACOMP YARDS -EACH $31.57 STANDARD APPLIANCE -COMM ONLY $14.37 COMMERCIALDEPOSIT 1 MONTH SERVICE REPLACEMENT CAN CHARGE $88.93 RETURNED CHECK FEE $36.61 COMMERCIAL ADDITIONAL FEES EACH GATE CHARGE $3.40 $14.72 CARRY OUT/ROLLOUT 525'$14.72 $3.40 CAR TIRES 4 EACH $5.25 OVERWEIGHT CONT IPER YD $15.79 TRUCK TIRES -EACH $10.50 RESTART FEE (NONPAY ONLY)$45.40 STEAM CLEAN FEL CONTAINER $42.37 GATE CHARGE -FER MONTHIP1 $14.72 $3.40 STEAM CLEAN DROP BOX $105.13 HOURLY RATE (1/ZHR MIN)$99.39 LOCKING CONTAINER PREP $99.35 "MILEAGE ONLV CHARGEDFOR MILES DRWVENOUTSIDE CITYLIMITS" X:\CityCOnIraC(S\_BDl_Pa5co\ CORERateCharIg=_PasCo_Jan2O19 7/31/2015Page 131 of 201 Page 132 of 201 State Auditor’s Office (SAO) •Office of Washington State Auditor’s Office performs two audits for the City each year –Financial and Federal Audit –Accountability Audit Page 133 of 201 Financial and Federal Audit •Determine if the local governments' financial statements are accurate and complete •An independent assessment of the local governments financial positions •Reports on internal control over financial reporting and on compliance with provisions of state and federal laws, regulations, contracts and grant agreements that have a material effect on the financial statementsPage 134 of 201 Audit Opinion We issued an unmodified opinion which means the financial statements were fairly presented in all material aspects and required disclosures were included.Page 135 of 201 Finding •The City received one finding during the audit of City’s 2017 financials •The finding was regarding reporting of Other Post Employment Benefits (OPEB) prior period adjustment in Statement of Activities •SAO contends that the City should have reported the adjustment as a separate line rather than a net amount as shown in next slidePage 136 of 201 SUBMITTED FINANCIAL STATEMENTPage 137 of 201 Page 138 of 201 Page 139 of 201 CORRECTED FINANCIAL STATEMENTPage 140 of 201 Page 141 of 201 Page 142 of 201 IMPACT Before After •Net Position -$246,827,561 •Lack of clarity on impact of OPEB adjustment •Net Position -$246,827,561 •Provides clarity on regular revenue and OPED adjustment Page 143 of 201 NOTES Page 144 of 201 IMPACT Before After •Net Position - $246,827,561 •Lack of clarity on impact of OPEB adjustment •Net Position - $246,827,561 •Provides clarity on regular revenue and OPEB adjustment Page 145 of 201 QUESTIONS?Page 146 of 201 AGENDA REPORT FOR: City Council October 15, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Steve Worley, Director Public Works SUBJECT: Presentation - 16030 Chapel Hill Extension LID 150 I. REFERENCE(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: No action required. Presentation by Steve Worley, Public Works Director III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: The Chapel Hill Road extension project is the major east-west corridor through the rapidly developing former DNR property located between Rd 68 and Rd 84. The City Council has previously authorized LID 150 as a financing vehicle by which to fund the private share of the cost to develop this improvement. This presentation is intended to update the Council and public on the status of the project and to review the projected schedule. Page 147 of 201 Page 148 of 201 Page 149 of 201 Page 150 of 201 Page 151 of 201 Page 152 of 201 Page 153 of 201 Page 154 of 201 Page 155 of 201 Page 156 of 201 Page 157 of 201 Page 158 of 201 Page 159 of 201 Page 160 of 201 Page 161 of 201 Page 162 of 201 Page 163 of 201 AGENDA REPORT FOR: City Council October 16, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Rick White, Director Community & Economic Development SUBJECT: Annexation and Bonded Indebtedness I. REFERENCE(S): Resolution 3403 Proposed Resolution II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The Petition Method of annexation requires City Council to determine: • If the City will accept or modify the boundaries of a proposed annexation as depicted in a valid petition; • Whether the City will require simultaneous adoption of zoning; and • Whether the City will require the annexed properties to assume all or a portion of existing City indebtedness. In May of 2012 City Council considered and adopted Resolution 3403 which declared the City would not require the assumption of existed bonded indebtedness for newly annexed properties. The adoption of Resolution 3403 established formal recognition of the City's long standing practice of not requiring past bonded indebtedness on newly annexed properties. Resolution 3403 was adopted to preclude the objection to annexation that newly annexed residents of long established and developed areas would be required to pay a portion of their property tax to retire bonded indebtedness that they were not able to vote upon. This policy was largely related to annexation of a large unincorporated and Page 164 of 201 populated island(s) (commonly referred to as "the doughnut whole") surrounded by incorporated areas . Since May of 2012 the City has retired the debts on the then existing bonded indebtedness concerning the City Hall and Library remodel and the construction of Fire Station 81. City Council considered this issue at the Workshop Meeting of September 24, 2018 and generally concurred that the ability to incur bonded indebtedness for areas north and west of the current City Limits was logical; while continuing to exempt the "Riverview Area", based on the same reasoning considered in the adoption of Resolution 3403, was appropriate. Council also indicated that the ability to consider the incurrence of bonded indebtedness on a case specific basis was desired. V. DISCUSSION: As the City looks to serve an additional 51,000 residents over the next two decades and looks to the north for lands to accommodate those numbers that will become part of the City, it is reasonable to revisit this issue at this time for several reasons: 1. There is no current voted and bonded indebtedness that would apply to newly annexed properties. 2. At the time Resolution 3403 was adopted, annexations were largely coming from within developed portions of the "doughnut hole" area, in the future more will come from newly or undeveloped lands in the NW quadrant of the urban growth area. 3. Much of the land to the north of the current City limits and west of the airport is farmland, sparsely populated and will likely be included within the City amended Urban Growth Area. Annexation and development of these properties differ from the annexation of long-standing developed areas (like those within the unincorporated island) in that these properties will develop into new homes, neighborhoods and commercial facilities populated by new residents that recently moved to be part of Pasco and will add new demands on public infrastructure. 4. The long-standing population in the unincorporated islands while having an impact on City services for decades, do not in themselves create new impacts to such services as will be the case with development of lands to the northwest. 5. Future bonded indebtedness is a likely possibility going forward and as a matter of fairness, it seems appropriate for payments of bonded indebtedness be shared by all residents of the City - as City infrastructure benefits current City residents and properties not within city limits but within the Urban Growth Boundaries and residents of any future annexed area. The proposed Resolution repeals Resolution 3403 and establishes a general policy to exempt the "Riverview Area" from bonded indebtedness and incurs bonded Page 165 of 201 indebtedness on areas north and west of the existing City Limits. The proposed resolution also provides flexibility for Council consideration of bonded indebtedness to occur on a case specific basis. The proposed Resolution attempts to capture the most recent Council discussion of this issue, staff welcomes Council input on the Resolution and subject to Council input, anticipates bringing the Resolution back for consideration and action at the first regular City Council meeting of November 5, 2018. Page 166 of 201 RESOLUTION NO. 3 463 A RESOLUTION Concerning Annexation and Bonded Indebtedness. WHEREAS, the eventual incorporation of the entire western portion of the city's urban growth area has been a goal of the city for more than 30 years; and WHEREAS, the majority of the urban growth area has been incorporated through the annexation process; and WHEREAS,the City Council has determined for each annexation over the past 20 years, that the annexing properties would be exempted from paying the property tax otherwise required for bonded indebtedness approved by city voters prior to the date of annexation of the subject properties; and WHEREAS, the current annexation planning effort has raised the question of whether or not the city would require payment of existing bonded indebtedness of the city upon annexation of properties remaining in the urban growth area; and WHEREAS, the City Council finds it is in the best interest of all concerned to provide a clear and indisputable answer to the question; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, Section 1: That the City Council hereby declares that it will not require any properties within the current Pasco urban growth area to assume existing bonded indebtedness of the city in concert with annexation of the respective properties. PASSED by the City Council of the City of Pasco at its regular meeting this 7th day of May, 2012. Og,p0Z•1 Matt Watkins, Mayor AT ESJ: APPR AS TO FORM: 2 De ra ar , City Clerk Leland B. Kerr, City Attorney Page 167 of 201 RESOLUTION NO. _________ RESOLUTION OF THE PASCO CITY COUNCIL CONCERNING ANNEXATION AND BONDED INDEBTEDNESS WHEREAS, the majority of the Urban Growth Area has been incorporated through the Petition Method of annexation; and WHEREAS, the Petition Method of Annexation requires City Council to determine whether a newly annexed property will be required to assume all or a portion of bonded indebtedness; and WHEREAS, the City of Pasco does not currently have any existing voter approved bonded indebtedness; and WHEREAS, bonded indebtedness is used to finance City infrastructure that benefits both current and future residents of the City; and WHEREAS, the Pasco Urban Growth Area contains unincorporated properties that are substantially developed and located south of Interstate 182 and do not represent significant new demands on public infrastructure; and WHEREAS, the Pasco Urban Growth Area also contains unincorporated properties located north of Interstate 182 which were developed under Franklin County subdivision and development regulations and properties not yet developed that represent significant new demands on public infrastructure; and WHEREAS, it is appropriate for bonded indebtedness for the City to be shared by both current and future City residents; and WHEREAS, the issue of bonded indebtedness for newly annexed properties should be weighed against the need to finance public infrastructure that is needed to provide those properties with facilities that represent urban development standards; and WHEREAS, the Pasco City Council has the ability to decide upon the incurrence of bonded indebtedness for annexed properties with each annexation petition received in conformance with the Petition Method of Annexation; Now, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: Section 1.That Resolution 3403 be repealed; and Section 2.Properties within the area commonly referred to as the “Riverview Area” are considered to have had impacts to public infrastructure for many years and do not currently represent new demands on such infrastructure; and Section 3. Properties to the north and west of the City Limits are generally under-developed or undeveloped and would represent new demands on public infrastructure should annexation and/or urban development occur on those properties; and Page 168 of 201 Section 4. City Council may require on a case-specific basis the assumption of bonded indebtedness for annexed properties that represent demands on public infrastructure for which bonded indebtedness has been incurred. PASSED by the City Council of the City of Pasco this _____day of _______________, 2018 _____________________________ Matt Watkins Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Daniela Erickson Leland B. Kerr City Clerk City Attorney Page 169 of 201 AGENDA REPORT FOR: City Council October 17, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Stan Strebel, Deputy City Manager Executive SUBJECT: Pricing of Real Property I. REFERENCE(S): Vicinity Map II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion of Factors on Pricing Discussion of Price in Executive Session III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: The City currently has a 3.78 acre parcel listed for sale through the City's broker. The City has received an inquiry regarding the zoning, proposed use and timing of the sale. Each of these factors can influence the City's agreeable price for the property as well as its willingness to enter into a purchase and sale agreement. While the law allows the Council to discuss the price of real estate, considering the different value related factors, in executive session, the identification of the factors must be done in an open meeting. Staff recommends the following factors for consideration: 1. To what extent are the intended use/s beneficial to the City? 2. How would the intended use/s impact surrounding neighborhoods and the City's overall Comprehensive Plan? 3. Is the proposed timing right for the purchase/sale of the property? Considering the above factors, Council can discuss the bearing that each has on price Page 170 of 201 of the property in executive session. Page 171 of 201 Page 172 of 201 AGENDA REPORT FOR: City Council October 17, 2018 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Stan Strebel, Deputy City Manager Executive SUBJECT: Pacific Power Franchise Extension I. REFERENCE(S): Ordinance 3882 Vicinity Map Proposed Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: Pacific Power Corporation operates an electrical transmission line which runs from Pasco east to Highway 12 and into Walla Walla County. Pacific Power's substation is located near the Port of Pasco dock on the Columbia River, west of the railroad bridge. Pacific has a franchise with the City in order to place its lines within the rights -of-way. The franchise has been in place for decades. The current franchise, for a 10 year term, was approved by Council in October 2008 (Ordinance No. 3882). Staff is working with Pacific to reach agreement on a successor franchise document for consideration by Council at a later date. In the interim, Staff recommends an extension of the existing franchise until negotiations are completed on a successor agreement. The attached proposed Ordinance provides for an extension of 6 months, until April 25, 2019. V. DISCUSSION: Page 173 of 201 ORDINANCE NO. g AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, GRANTING TO PACIFICORP, AN OREGON CORPORATION DOING BUSINESS AS PACIFIC POWER& LIGHT COMPANY, A NON-EXCLUSIVE FRANCHISE TO CONSTRUCT, INSTALL, OPERATE, AND MAINTAIN AN ELECTRICAL POWER TRANSMISSION AND DISTRIBUTION SYSTEM IN, ON, OVER, UPON, ALONG, AND ACROSS CERTAIN DESIGNATED PUBLIC RIGHTS-OF-WAY OF THE CITY OF PASCO, WASHINGTON, PRESCRIBING CERTAIN RIGHTS, DUTIES, TERMS, AND CONDITIONS WITH RESPECT THERETO, AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, PacifiCorp, an Oregon Corporation, d.b.a. Pacific Power ("PacifiCorp"), is a regulated public utility that provides electric power and energy to the citizens of the City of Pasco (the "City") and other surrounding areas shown in Exhibit A; and WHEREAS, providing electrical power and energy requires the installation, operation and maintenance of power poles and other related facilities to be located within the public ways of the City shown in Exhibit A; and WHEREAS, the City desires to set forth the terms and conditions by which PacifiCorp shall use the public ways of the City; and WHEREAS, the City Council has the authority under RCW 35A.47.040 to grant franchises for the use of its streets and other public properties. NOW, THEREFORE, be it ordained by the City: SECTION 1. Grant of Franchise and General Utility Easement. The City hereby grants to PacifiCorp the right, privilege and authority to construct, maintain, operate, upgrade, and relocate its electrical distribution and transmission lines and related appurtenances, including underground conduits and structures, poles, towers, wires, guy anchors, vaults, transformers, transmission lines, and communication lines (collectively referred to herein as "Electric Facilities") in, under, along, over and across the present and future streets, alleys, and public ways (collectively referred to herein as "Public Ways") within the City, for the purpose of supplying and transmitting electric power and energy to the inhabitants of the City and persons and corporations beyond the limits thereof. PacifiCorp shall apply for and obtain a Construction Permit pursuant to PMC Chapter 12.2 prior to site-specific location and installation of any and all such electrical power facilities. All other Franchises heretofore granted by the City to PacifiCorp or its predecessors in interest of which it has acquired for utilization of streets, avenues, right-of-way, roads, alleys, lands or other public places within the City for electrical power, are cancelled and superseded in their entirety by this Franchise 1 Page 174 of 201 SECTION 2. Term. The term of this Franchise and General Utility Easement is for 10 (ten) years commencing on the date of acceptance by the Company as set forth in Section 3 below. SECTION 3. Acceptance by PacifiCorp. Within sixty (60) days after the passage of this ordinance by the City, PacifiCorp shall file an unqualified written acceptance thereof, with the City Recorder, otherwise the ordinance and the rights granted herein shall be null and void. SECTION 4. Non-Exclusive Franchise. The right to use and occupy the Public Ways of the City shall be nonexclusive and the City reserves the right to use the Public Ways for itself or any other entity that provides water or sewerage service to City residences; provided, however, that such use shall not unreasonably interfere with PacifiCorp's Electric Facilities or PacifiCorp's rights granted herein. SECTION 5. City Rezulatory Authority. In addition to the provision herein contained, the City reserves the right to adopt such additional ordinances and regulations as may be deemed necessary in the exercise of its police power for the protection of the health, safety and welfare of its citizens and their properties or exercise any other rights, powers, or duties required or authorized, under the Constitution of the State of Washington, the laws of Washington or City Ordinances. SECTION 6. Indemnification/Insurance. 6.1 Indemnification. The City shall in no way be liable or responsible for any loss or damage to property or any injury to, or death, of any person that may occur in the construction, operation or maintenance by PacifiCorp of its Electric Facilities. PacifiCorp shall indemnify, defend and hold the City harmless from and against claims, demands, liens and all liability or damage of whatsoever kind on account of PacifiCorp's use of the Public Ways within the City, and shall pay the costs of defense plus reasonable attorneys' fees for any claim, demand or lien brought thereunder. The City shall: (a) give prompt written notice to PacifiCorp of any claim, demand or lien with respect to which the City seeks indemnification hereunder; and (b) unless in the City's judgment a conflict of interest exists between the City and PacifiCorp with respect to such claim, demand or lien, permit PacifiCorp to assume the defense of such claim, demand, or lien with counsel satisfactory to City. If such defense is not assumed by PacifiCorp, PacifiCorp shall not be subject to liability for any settlement made without its consent. Notwithstanding any provision hereof to the contrary, PacifiCorp shall not be obligated to indemnify, defend or hold the City harmless to the extent any claim, demand or lien arises out of or in connection with any negligent or willful act or failure to act of the City or any of its officers or employees. 6.2 Insurance. During the term of this Franchise, PacifiCorp shall maintain in full force and effect, at its own cost and expense, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by PacifiCorp, its agents, representatives, employees, or subcontractors. 2 Page 175 of 201 PacifiCorp shall provide a certificate of insurance naming the City, its officials, boards, commissions, agents, and/or employees as additional insureds evidencing: (1) automobile liability insurance with limits no less than $2,000,000.00 combined single limit per accident for bodily injury and property damage; and (2) commercial general liability insurance written on a claims first-made basis with limits no less than $2,000,000.00 per claim and $4,000,000.00 general aggregate for personal injury, bodily injury, and property damage. Coverage shall include, but not be limited to blanket contractual, products/completed operation, broad form property damage, explosion, collapse and underground (XCU) if applicable, and employer's liability. PacifiCorp's insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. PacifiCorp's insurance shall be primary insurance with respect to the City, and any insurance maintained by the City shall not contribute with it. PacifiCorp shall file a certificate of insurance required by this Section with the City upon acceptance of this Franchise. The insurance policy and certificate shall contain a provision stating that it may not be canceled, suspended, or reduced in coverage without thirty (30) days advance written notice to the City. In the event that the policy is canceled, suspended, or reduced in coverage, PacifiCorp shall provide a replacement certificate evidencing the insurance coverage required by this Section at least fifteen (15) days prior to the cancellation, suspension, or reduction in coverage of the existing policy. PacifiCorp shall have the right to satisfy the insurance obligations set forth above through a program of self-insurance. SECTION 7. Annexation. 7.1 Extension of City Limits. Upon the annexation of any territory to the City, the rights granted herein shall extend to the annexed territory to the extent the City has such authority. All Electrical Facilities owned, maintained, or operated by PacifiCorp located within any public ways of the annexed territory shall thereafter be subject to all of the terms hereof. 7.2 Annexation. When any territory is approved for annexation to the City, the City shall, not later than ten (10) working days after passage of an ordinance approving the proposed annexation, provide by certified mail to PacifiCorp: (a) each site address to be annexed as recorded on county assessment and tax rolls; (b) a legal description of the proposed boundary change; and (c) a copy of the City's ordinance approving the proposed annexation. The notice shall be mailed to: PacifiCorp Customer Contact Center Attn: Annexations P.O. Box 400 3 Page 176 of 201 Portland, Oregon 97202-0400With a copy to: PacifiCorp Attn: Office of the General Counsel Suite 2000 825 N E Multnomah Portland, Oregon 97232 Additional or increased fees or taxes, other than ad valorem taxes, imposed on PacifiCorp as a result of an annexation of territory to the City shall become effective on the effective date of the annexation if notice is given to PacifiCorp by certified mail not later than ten (10) working days after the effective date of the annexation. However, if notification of the effective date of the annexation is provided to PacifiCorp later than the tenth (10` h) working day after the effective date of the annexation, the additional or increased fees or taxes will become effective on the date of the notification. SECTION 8. Planning, Design, Construction and Installation of Company Facilities. 8.1 All Electric Facilities installed or used under authority of this Franchise shall be used, constructed and maintained in accordance with applicable federal, state and city laws, codes and regulations. 8.2 Except in the case of an emergency, PacifiCorp shall, prior to commencing new construction or major reconstruction work in the public way or street or other public places, apply for a permit from the City which permit shall not be unreasonably withheld, conditioned, or delayed. PacifiCorp will abide by all applicable ordinances and all reasonable rules, regulations and requirements of the City, and the City may inspect the manner of such work and require remedies as may be necessary to assure compliance. Notwithstanding the foregoing, PacifiCorp shall not be obligated to obtain a permit to perform emergency repairs. 8.3 All Electric Facilities shall be located so as to cause minimum interference with the Public Ways of the City and shall be constructed, installed, maintained, cleared of vegetation, renovated or replaced in accordance with applicable rules, ordinances and regulations of the City. 8.4 If, during the course of work on its Electrical Facilities, PacifiCorp causes damage to or alters the Public Way or public property, PacifiCorp shall (at its own cost and expense and in a manner approved by the City) replace and restore it to a condition comparable to that which existed before the work commenced. 8.5 In addition to the installation of underground electric distribution lines as provided by applicable state law and regulations, PacifiCorp shall, upon payment of all charges provided in its tariffs or their equivalent, place newly constructed electric distribution lines underground as may be required by City ordinance. 4 Page 177 of 201 8.6 The City shall have the right without cost to use all poles and suitable overhead structures owned by PacifiCorp within Public Ways for City wires used in connection with its fire alarms, police signal systems, or other communication lines used for governmental purposes; provided, however, any such uses shall be for activities owned, operated or used by the City for a public purpose and shall not include the provision of CATV, internet, or similar services to the public. Provided further, that PacifiCorp shall assume no liability nor shall it incur, directly or indirectly, any additional expense in connection therewith, and the use of said poles and structures by the City shall be in such a manner as to prevent safety hazards or interferences with PacifiCorp's use of same. Nothing herein shall be construed to require PacifiCorp to increase pole size, or alter the manner in which PacifiCorp attaches its equipment to poles, or alter the manner in which it operates and maintains its Electric Facilities. City attachments shall be installed and maintained in accordance with the reasonable requirements of PacifiCorp and the current edition of the National Electrical Safety Code pertaining to such construction. Further, City attachments shall be attached or installed only after written approval by PacifiCorp. 8.7 PacifiCorp shall have the right to excavate the Public Ways subject to reasonable conditions and requirements of the City. Before installing new underground conduits or replacing existing underground conduits, PacifiCorp shall first notify the City of such work and shall allow the City, at its own expense, to share the trench of PacifiCorp to lay its own conduit therein, provided that such action by the City will not unreasonably interfere with PacifiCorp's Electric Facilities or delay project completion. 8.8 Before commencing any street improvements or other work within a Public Way that may affect PacifiCorp's Electric Facilities, the City shall give written notice to PacifiCorp. 8.9 No structures, buildings or signs shall be erected below PacifiCorp's facilities or in a location that prevents PacifiCorp from accessing or maintaining its facilities. SECTION 9. Relocation of Electric Facilities. 9.1 The City reserves the right to require PacifiCorp to relocate overhead Electric Facilities within the Public Ways in the interest of public convenience, necessity,health, safety or welfare at no cost to the City. Within a reasonable period of time after written notice, PacifiCorp shall promptly commence the overhead relocation of its Electrical Facilities. Before requiring a relocation of Electric Facilities, the City shall, with the assistance and consent of PacifiCorp, identify a reasonable alignment for the relocated Electric Facilities within the Public Ways of the City. The City shall assign or otherwise transfer to Company all right it may have to recover the cost for the relocation work and shall support the efforts of PacifiCorp to obtain reimbursement. 9.2 PacifiCorp shall not be obligated to pay the cost of any relocation that is required or made a condition of a private development. If the removal or relocation of facilities is caused directly or otherwise by an identifiable development of property in the area, or is made for the convenience of a customer, PacifiCorp may charge the expense of removal or relocation to the 5 Page 178 of 201 developer or customer. For example, PacifiCorp shall not be required to pay relocation costs in connection with a road widening or realignment where the road project is made a condition or caused by a private development. In such event, the City shall require the developer to pay PacifiCorp for such relocation costs as part of its approval procedures. SECTION 10. Subdivision Plat Notification. Before the City approves any new subdivision and before recordation of the plat, the City shall mail notification of such approval and a copy of the plat to PacifiCorp: PacifiCorp Attn: Property Management/ Right-of-Way Department 825 NE Multnomah, Suite 1700 Portland, Oregon 97232 SECTION 11. Vegetation Management. PacifiCorp or its contractor may prune all trees and vegetation which overhang the Public Ways, whether such trees or vegetation originate within or outside the Public Ways, to prevent the branches or limbs or other part of such trees or vegetation from interfering with PacifiCorp's Electrical Facilities. Such pruning shall comply with the American National Standard for Tree Care Operation (ANSI A300) and be conducted under the direction of an arborist certified with the International Society of Arboriculture. A growth inhibitor treatment may be used for trees and vegetation species that are fast-growing and problematic. Nothing contained in this Section shall prevent PacifiCorp, when necessary and with the approval of the owner of the property on which they may be located, from cutting down and removing any trees which overhang streets. SECTION 12. Renewal. At least 180 days prior to the expiration of this Franchise, PacifiCorp and the City shall agree to either extend the term of this Franchise for a mutually acceptable period of time or the parties shall use best faith efforts to renegotiate a replacement Franchise, SECTION 13. No Waiver. Neither the City nor PacifiCorp shall be excused from complying with any of the terms and conditions of this Franchise by any failure of the other, or any of its officers, employees, or agents, upon any one or more occasions to insist upon or to seek compliance with any such terms and conditions. SECTION 14. Transfer of Franchise. PacifiCorp shall not transfer or assign any rights under this Franchise to another entity, except transfers and assignments by operation of law, unless the City shall first give its approval in writing, which approval shall not be unreasonably withheld; provided, however, inclusion of this Franchise as property subject to the lien of PacifiCorp's mortgage(s) shall not constitute a transfer or assignment. SECTION 15. Amendment. At any time during the term of this Franchise, the City, through its City Council, or PacifiCorp may propose amendments to this Franchise by giving thirty(30) days written notice to the other of the proposed amendment(s) desired, and both parties thereafter, through their designated representatives, will, within a reasonable time, negotiate in good faith in 6 Page 179 of 201 an effort to agree upon mutually satisfactory amendment(s). No amendment or amendments to this Franchise shall be effective until mutually agreed upon by the City and PacifiCorp and formally adopted as an ordinance amendment. SECTION 16. Non-Contestability--Breach of Contract. 16.1 Neither the City nor PacifiCorp will take any action for the purpose of securing modification of this Franchise before either the Washington Utility and Transportation Commission or any Court of competent jurisdiction; provided, however, that neither shall be precluded from taking any action it deems necessary to resolve difference in interpretation of the Franchise nor shall PacifiCorp be precluded from seeking relief from the Courts in the event Washington Utility and Transportation Commission orders, rules or regulations conflict with or make performance under the Franchise illegal. 16.2 In the event PacifiCorp or the City fails to fulfill any of their respective obligations under this Franchise, the City, or PacifiCorp, whichever the case may be, will have a breach of contract claim and remedy against the other in addition to any other remedy provided by law, provided that no remedy which would have the effect of amending the specific provisions of this Franchise shall become effective without such action which would be necessary to formally amend the Franchise. SECTION 17. Recovery of Costs. PacifiCorp shall be subject to all applicable permit fees associated with activities undertaken through the authority granted in this Franchise or under the laws of the City as set forth in the Pasco Municipal Code and/or City ordinance. The City reserves the right to impose and collect from PacifiCorp all taxes, fees and charges permitted by RC W 3 5.21.860 as currently or hereafter amended or otherwise provided by state law. SECTION 18. Abandonment and Removal of PacifiCorA's Electrical Power Distribution Facilities. Upon the expiration or termination of this Franchise and consistent with the provisions of PMC Section 15.70.260, PacifiCorp shall remove all of its electrical power distribution facilities from the public ways of the City within one hundred eighty (180) days of receiving written notice from the Public Works Director. Except as specifically provided by PMC Title 15, PacifiCorp shall not be allowed to abandon any of its electrical power distribution facilities within the public ways of the City or upon public property subject to this Franchise. SECTION 19. Forfeiture and Revocation. The rights granted under this Franchise may be revoked or forfeited as provided in Chapter 15.90 of the Pasco Municipal Code; provided, that the City may elect, in lieu of the above and without any prejudice to any of its other legal rights and remedies, to obtain an order from the superior court having jurisdiction compelling PacifiCorp to comply with the provisions of this Franchise and to recover damages and costs incurred by the City by reason of PacifiCorp's failure to comply. 7 Page 180 of 201 SECTION 20. Dispute Resolution. Should any dispute arise concerning the enforcement, breach or interpretation of this Agreement, the parties shall first meet in good faith effort to resolve the dispute, however, if unresolved, the dispute shall be resolved by binding arbitration pursuant to RCW 7.04A, the Mandatory Rules of Arbitration. Venue shall be placed in Franklin County, Washington, and the prevailing party shall be awarded attorney fees and costs. SECTION 21. Repealer. Upon the effective date of this Ordinance and acceptance of such Ordinance and Franchise by PacifiCorp, Ordinance No 3318 shall be repealed in its entirety. SECTION 22. Notices. Unless otherwise specified herein, any notices or information required or permitted to be given to the parties under this Franchise shall be sent to the following addresses: city PacifiCorp Director of Public Works Customer and Community Affairs CITY OF PASCO Vice President PO Box 293 PACIFIC POWER Pasco WA 99320 825 NE Multnomah Lloyd Center Tower Suite 2000 Portland OR 97232 and such other office as PacifiCorp may advise the City of by written notice. SECTION 23. Severability. If any section, sentence, paragraph, term or provision hereof is for any reason determined to be illegal, invalid, or superseded by other lawful authority including any state or federal regulatory authority having jurisdiction thereof or unconstitutional, illegal or invalid by any court of common jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such determination shall have no effect on the validity of any other section, sentence, paragraph, term or provision hereof, all of which will remain in full force and effect for the term of the Franchise or any renewal}orr renewals thereof. IIPIIASSED by the City Council of the City of PC.l5eD , Washington this M day of OC 4 X.r , 200 Joyc is Mayor ATTEST: APPR AS TO FORM: Lat- Debra. L. Clark, City C Leland B. 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Ir ‘ ‘ I ‘—1 --I ‘L __ '"l M ‘I _....-._J -.v39" I’' ‘1 _ “ ,"9“rr-.-.r,.nr.‘1..-.-.‘2 ‘ Mm 1 —m .1‘,y .1 _____‘_.‘_54?:V)—‘.—-«—A_g _'-' —-—.._ i 9 »“'___.-...- .w.‘.; am: 7 ’!‘mm. m.» M ! r~......'\4 ..M72 ,\ \~—M»:‘um.-n'.‘..\ _m.:um:.3 aw \ .~1. ‘.;'‘ ~—-. “ M. -3..__ F-a m ' A sn 1‘ ,1‘r ... ‘ —nuuvru ~..._rnnum.+:w..a ‘--A-<-> m«r "n »,.,,_,“-, mm |\-in n -.".'«ArkPasco,WA A V_‘*C"VL‘"'”VPACIFICORP 1 .T I515snwaxrsnvus »-1 Pacificorp Transmission Line Daalsprmertedin > Sdvm?v-w ‘ ' um Zone 11,NADE2,m2Iers '.4-W ‘ ,___Paci?corp Distribution Line Pzd?carvmakesnuvevresentahonsurwzrranllesistolhe r_-:-'-yr‘. I’m__\accuracy,completeness er mnesslora panmnarpurpnse , VwithrespectIntheinformationuenramedinthismap '.__Pici?cnrpsha?hav:nu mpansubuny nrhzbxlitym aw -,,_,A pauflcorp gubstatmn pssan or enmyresullmg fmm thzuseufanvlnfarmntlun . furnished In thts map .7 N00512 M ' Miles A '»‘ ' ""‘‘ -" _ -1’_ my (_.-...1 . oum/zru:nzusvzzGwmzpz ,m<.»:mrp.:om \\w ram us\rifs\PDXCO\5H|?C7\TC omIs\r=.,-ns\zo1s\»a—z1o\P.~.scn or Ivlew mxnPage 187 of 201 Ordinance - 1 ORDINANCE NO._______________ An ORDINANCE of the City of Pasco, Washington, Extending the Electrical Power Franchise Agreement with PacifiCorp an Oregon Corporation Doing Business as Pacific Power and Light Through April 25, 2019 WHEREAS, the provision of electric power services is a critical service for many Columbia Basin residents, businesses and the public at large; and WHEREAS, provision of electrical power services necessitates an agreement for use of public right-of-way between the City of Pasco (“City”) and all electrical power service providers operating facilities within the City limits; and WHEREAS, the current electrical power franchise agreement was entered into pursuant to Ordinance No. 3882 on October 20, 2008; and WHEREAS, said Franchise has a date of expiration on October 25, 2018; and WHEREAS, Grantee and the City have been unable to complete negotiations on terms for a Franchise renewal prior to the Franchise expiration date; and WHEREAS, the City is willing to grant an extension of the current Franchise until April 25, 2019 while it considers provisions within the renewal request, if PacifiCorp agrees to abide by the terms and conditions of the existing Franchise during any such extension, and neither party is otherwise prejudiced by the extension; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Extension of the Term of the Franchise Agreement through April 25, 2019. The Franchise rights granted under the above-mentioned Franchise Agreement, dated October 20, 2008 under the authority of Ordinance 3882, as amended, are hereby extended subject to the terms and condition set forth below until the earlier of April 25, 2019 or when a new Franchise Agreement is enacted by the City. Section 2. Terms and Conditions of Extension of the Agreement. The City’s consent to the extension, described above, is subject to, and conditioned upon, the following terms and conditions: A. All terms and conditions of the existing Franchise Agreement shall remain in full force and effect beginning on the expiration date of the Franchise Agreement entered into pursuant to Ordinance No. 3882 and during the extension period. Page 188 of 201 Ordinance - 2 B. The extension shall have no adverse effect on Grantee’s compliance, nor shall the extension be grounds for any change or modification in the remaining terms, conditions and obligations of the Franchise Agreement. Further, the extension of the franchise agreement will not affect, diminish, impair or supercede the binding nature of the existing ordinances and agreements applicable to operation of the electric system. C. The City and Grantee’s agreement to extend the Franchise Agreement, as set forth herein, shall not be construed, in any manner whatsoever, to constitute a waiver or release of any rights that the City or the Grantee may have under the Franchise Agreement. D. Nothing herein shall be deemed or construed as a waiver, release or surrender of any right that either party may have under any applicable law. Section 3. 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 October, 2018. __________________________________ Matt Watkins, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ __________________________________ Daniela Erickson, City Clerk Leland B. Kerr, City Attorney Page 189 of 201 AGENDA REPORT FOR: City Council October 18, 2017 TO: Dave Zabell, City Manager Workshop Meeting: 10/22/18 FROM: Richa Sigdel, Director Finance SUBJECT: 2019 Ad Valorem Tax Levy I. REFERENCE(S): White Paper on Property Tax Levy II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Sets the City share of the property tax rate. The impact to the General Fund depends on the option selected. IV. HISTORY AND FACTS BRIEF: As part of the annual budget process, per RCW 84.55.120, cities are required to conduct a public hearing on General Fund revenue sources for the coming year's budget, including possible increases in property tax revenues. Following the hearing, Council may choose to pass an ordinance at the same meeting authorizing the property tax levy for the ensuing year, consistent with statutory limitations. State statue limits the property tax rate the City can levy to $3.60 per $1,000 of assessed valuation. Other general fund revenue includes sales tax, fees and charges, utility taxes, fines and forfeitures, and transfers. Property tax, however, requires a public hearing and vote separate from the budget and is the primary focus of this narrative. Revenues generated through the City property tax levy represent a major source of funding for essential government services such as: police, fire, parks, community development, finance, administration, as well as a significant portion of streets and Page 190 of 201 other services deemed necessary by the Council through the budget process. In 2001, the voters approved Initiative 747 limiting the amount taxing districts could increase the total property tax levy over the previous year by the lesser of 1% or the Implicit Price Deflator (IPD) without voter approval. In November 2007, that initiative was challenged and ruled unconstitutional by the Washington State Supreme Court; the Court's ruling returned the limit to the lesser of 6% or IPD. The Legislature subsequently placed into law those limits suggested by I-747. The current legal limit is the lesser of 1% or IPD. The IPD differs significantly from a regional Consumer Price Index (CPI) in that, unlike the CPI, the IPD is not based on a fixed basket of goods and services in a region. The IPD basket spans the nation and is based on changes from year to year with people's consumption and investment patterns. The IPD figure for the 2019 tax calculation is 1.0%. Since final tax levy data has yet to be issued by Franklin County Assessor’s Office, including information on any increases to State-assessed utilities, the calculations provided herein are estimates. Furthermore, because the Assessor’s Office is not allowed to set the levy to exceed what is shown in the City’s budget, we are p roviding information on both our estimated calculations and the rounded amount to be used for presentation in the budget. V. DISCUSSION: CITY PROPERTY TAX LEVY OPTIONS FOR 2019 The City Manager's recommended budget has been prepared using an estimated property tax levy of $8,811,504, less $80,656 to account for delinquency, and is represented by Option A below. Option A reflects an estimated increase of $418,928 over the 2018 levy amount. The proposed increase in property tax revenue is derived by a combination of enacting the recommended and statutorily allowed 1.0% increase in the City property tax levy, and an estimated increase in assessed valuation due to new construction and annexation in 2018. The effect of the new construction and annexation adds to the overall assessed valuation of the City, which in turn serves to reduce the levy rate for 2019 by $0.121 from the $1.746 per $1,000 of assessed valuation in 2018 to $1.625 in 2019. Option B depicts the amount the City would collect if the Council chose to adopt the statutorily allowed 1.0% increase, plus an estimated increase due to new construction and annexation in 2018, and banked capacity of $1,500,000. $1,500,000 is the estimated debt service cost to relocate and build two fire stations as discussed previously. This alternative would increase the levy rate for 2019 by $0.156 per $1,000 of assessed valuation from $1.746 in 2018 to $1.902 in 2019 and facilitate progress of the Council goal to maintain the recent improvement in the City's community rating by Page 191 of 201 the Washington State Rating Bureau. Option C depicts the amount the City would collect if the Council chose to adopt the statutorily allowed 1.0% increase, plus an estimated increase due to new construction and annexation in 2018, and the full banked capacity of $1,860,000. This alternative would increase the levy rate for 2019 by $0.222 per $1,000 of assessed valuation from $1.746 in 2018 to $1.968 in 2019 and facilitate the progress of Council goals requiring significant capital investments like fire stations, levee lowering and a community center. A more thorough explanation and rationale for the three options is provided in the attached white paper. Based on the analysis provided and the City Council's adopted goals, staff recommends that Council implement Option C, utilizing the full-banked capacity. For 2019, the Franklin County Assessor has provided a preliminary City assessed valuation of $5,422,601,412, which will be used as the basis to calculate the 2019 property taxes. This amount includes new construction of $186,110,300 and an estimated State-assessed utility of $7,000. STATUTORY DEADLINE FOR PROPERTY TAX DETERMINATION Finally, for the Franklin County Assessor to levy property taxes, the City is required to certify property tax levies with the County by November 30th of each year. Page 192 of 201 1 | Page Introduction Council has been briefed previously on the need to replace Fire Stations 83 and temporary Station 84, along with possible funding alternatives. To summarize, relocation of Fire Station 83 to the vicinity of Road 68 and Sandifur Parkway will significantly lessen response times to homes and businesses within the station service area and accommodate for response times within adopted standards for the developing areas in the Road 100 area. While the repurposing of an old volunteer station and modification of an adjacent single-family home on Road 48 south of Court Street as a temporary Fire Station (84) greatly accelerated the City’s ability to improve response times in the Riverview area, a permanent Fire Station 84, designed for the mission and located closer to Court Street arterial is necessary. Both stations are proposed to be located on property the City currently owns. Background The recently adopted Emergency Services Master Plan identified the relocation of Fire Station 83 to the area of Road 68 and Sandifur Parkway, and the construction of a permanent Fire Station 84, which will be located near Court Street in the Riverview area. This action was recommended as the most efficient and effective manner in which to meet the travel time recommendations of 6 minutes to 90% of incidents experienced within the City limits. While beneficial on all levels to residents, businesses and property owners within the City, these proposed stations represent a significant financial investment which will necessitate the issuance of debt and the need for a funding source to service the debt. The City has a few options for the Council to consider in funding such a significant investment which are listed immediately below. Fire Station Projected Costs The City Council was provided a briefing on August 27, 2018 on the Station 83 and 84 projects, with estimated costs reported at approximately $21 million dollars for both facilities. In the interim, Staff has worked closely with the pre-design team and has been able to reduce projected costs to $18 million dollars without sacrificing the quality or utility of either station. Assuming a 20-year loan with an interest rate of 5.0%, the annual debt service needed to fund these two projects is approximately $1.5 million. Page 193 of 201 2 | Page Funding Alternatives Options: As discussed during the September briefing, there are essentially three means by which to finance a project like the Fire Station replacement. As a refresher, below is a description of each of the available options and pertinent background information. Unlimited Tax General Obligation Bond (UTGO) A common method of financing capital improvements for local governments is through the issuance of municipal bonds known as “Unlimited Tax General Obligation Bonds” or “UTGO Bonds.” The voters of the local government must approve UTGO Bonds. UTGO Bonds are secured by and payable out of annual property taxes, in excess of regular property taxes, unlimited as to rate or amount. In other words, a local government is obligated to levy excess property taxes at whatever rate is necessary to repay the UTGO Bonds. Further, UTGO Bonds constitute a general obligation of the local government, and, as such, the full faith, credit and resources of the local government are pledged for their repayment. The approval process requires the local government voters to approve the bond ballot proposition at a properly conducted election. UTGO Bonds must be approved by 60% of the qualified voters within the local government. In addition, the total number of voters casting ballots at the election cannot be less than 40% of the number of votes cast in the last State general election. Further, a local government may only place a bond ballot proposition before its voters twice in any calendar year. Voted indebtedness for cities may not exceed 2.5% of Assessed Value (AV) for general municipal purposes (any outstanding non-voted or councilmanic debt is counted against this 2.5%), 2.5% for certain utility purposes, and 2.5% for certain parks, open space and economic development purposes. The total amount of voted and non-voted debt may not exceed 7.5%. The City has significant bonding capacity, with voted indebtedness being 0.2588% in 2017. The City has no UTGO bonds outstanding. The last UTGO bond issued by the City was in 1999 to fund a Library and a Fire Station (Station 81). The graph below illustrates the City’s total net debt as a percentage of debt limit for general municipal purposes since the high point of 1994. Page 194 of 201 3 | Page Limited Tax General Obligation Bond (LTGO) Another often utilized method of financing capital improvements is through the issuance of Limited Tax General Obligation Bonds, also called “councilmanic” bonds or non-voted debt. These bonds may be issued by a majority vote of the legislative body. Because the voters have not been asked to approve a tax increase to pay for the principal and interest, existing general fund revenues must be pledged to pay the debt service on a LTGO Bond. It is important to note that unlike the UTGO process, LTGO debt does not provide any additional revenue to fund debt service payments, but must be paid from existing revenue sources. As an example, the City issued $8,795,000 of LTGO bond in 2015 to build the Pasco Police and Community Services Building, which is being serviced by a voted Public Safety Tax. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% TOTAL NET DEBT AS A PERCENTAGE OF DEBT LIMIT Page 195 of 201 4 | Page Fire Tax Levy Municipalities are authorized to levy an additional property tax of $0.225 per thousand dollars of assessed value against all taxable property. The graph below illustrates a rapidly declining property tax rate for the City since 2006. This decline is primarily due to the statutory limit of a 1% increase on prior year’s property tax, rising home and property values, and the addition of assessed valuation through new construction within the City and annexations. The City has been levying a Fire Tax Levy for at least the last five decades. Once the rate was incorporated into the property tax, it became subject to the same restrictions as the City’s general levy. Thus, this levy rate has been significantly diluted as the assessed valuation of the City has grown. Upon consultation with numerous property tax law experts, Municipal Research and Services Center (MRSC), and Department of Revenue (DOR), it has been determined that there is no way under current law to restore the original levy rate to the statutory $0.225 per thousand dollars of assessed valuation. Page 196 of 201 5 | Page Debt Service Whether a bond is voter approved (UTGO) or councilmanic (LTGO), the debt on that bond requires servicing for the length of the bond. As noted above, a UTGO bond is serviced by revenue generated from voter-approved increased property taxes. However, existing financial resources can service councilmanic bonds, such as an increase in revenues through property taxes, increased utility taxes, or other stable sources of revenue. A quick feasibility of these alternatives concludes the following:  Use of current resources. The City lacks existing General Fund revenues on a level to service the amount of debt necessary to fund development and construction of the aforementioned Fire Stations.  Increase in utility tax on all utilities. The voters previously approved an increase in utility taxes to 8.5% several years ago to fund pavement preservation and public safety. While it is possible to ask the electorate to increase the utility tax, this would create a revenue source that will increase over time for a cost that is fixed for the term of the bond.  Increase in utility tax on city-owned utilities. Similar to the option above, with a significant difference being that Council can unilaterally increase the utility tax on city-owned utilities, such as water, sewer, stormwater, and irrigation. A difference being that this source could be adjusted by Council periodically to match debt service needs or other purposes approved by Council.  Use of banked capacity. Beginning in 1986, local governments have been allowed to levy less than the maximum increase in property taxes allowed under law without losing the ability to levy higher taxes later, if necessary. This provision encouraged districts to levy only what they needed rather than the maximum allowable with the confidence that, when additional revenues were needed, they would be available, subject to a vote of the legislative body. The banked capacity concept allowed municipalities to be more fiscally conservative and strategic without being penalized. The City has taken advantage of the flexibility allowed by law and has opted to bank the capacity over the years as part of a long-term strategy. The banked capacity for the City as of 2010 was $1,525,000 annually. However, a Department of Revenue (DOR) audit of Franklin County Assessor’s Office conducted in 2010 reduced the City’s banked capacity to $114,000. In evaluating the history of this transition over the past couple of years, Staff came to believe that this reduction by DOR was based on a clerical error and that the adverse annual financial impact of $1,411,000 was not proportional to the error. Staff has been working with the Franklin County Assessor’s office and DOR to resolve this issue for the past two years. As of October 16, 2018, both DOR and Franklin County Assessor’s office are in agreement with the City’s assessment of the situation. DOR has provided the Franklin County Assessor’s office a path forward for reinstatement of the City’s banked capacity to an amount of $1,859,000. This Page 197 of 201 6 | Page process is expected to be completed by end of November 2018. Without this action, the City’s banked capacity was slated to be just over $400,000 annually. To provide a frame of reference, $1,859,000 (implementation of the full-banked capacity available to the City) represents a potential increase from $1.746 to $1.968 per $1,000 assessed valuation, an increase of $0.222 per $1,000 of assessed valuation. This increase adds up to about $44 a year for a home valued at $200,000. Fire Station Funding Strategies Given the above, the most plausible courses of action to establish a reliable source of funding for the Fire Stations are: 1) UTGO, or 2) LTGO, with the strategic use of banked capacity. Should Council choose to build the new Fire Stations, the UTGO bond option provides the City with new revenue in the form of an additional tax levy to service the debt. However, as mentioned above, UTGO Bonds must be approved by 60% of the voters within the local government. In addition, the total number of voters casting ballots at the election cannot be less than 40% of the number of votes cast in the last State general election. The City would put the UTGO bond vote to the people in 2019 with the hope that the bond will not only get 60% of the votes, but also that 40% of the number of votes cast in the 2018 General Election will be cast in 2019. If the bond is approved, the construction of the fire stations will be moved to 2020-2021, and Staff estimates the cost escalation for this project to be about $900,000 each year due to construction cost inflation plus the cost of the election. If Council chooses to issue a LTGO bonds through a majority vote of the Council, construction could commence in 2019 and the construction inflation referenced above would be avoided. The $1.86 million in banked capacity is the result of Council choosing to save the statutorily allowed increase to property taxes over many years. Due to this, the only action needed to implement banked capacity is majority Council approval during the yearly Ad Valorem Tax Levy process. An LTGO bond without taking the banked capacity will necessitate at least $1.5 million dollars of yearly cost reductions to the General Fund which could not occur without immediate major program reductions that would be difficult to implement and more difficult to sustain over the life of the bond. As noted above, projected debt service for the Fire Stations is approximately $1.5 million annually. However, should Council choose to implement all of the available banked capacity, projects like the Community Center and Levy Lowering, with potential for uniform benefit across the community, could be partially funded through this process with the excess. Additionally, Council has approved seven full-time equivalent (FTE) positions to strengthen public safety: three in Fire and four in Police. Currently these positions are being partially reimbursed through grants; however, the City will incur full costs upon completion of the three-year period of performance for both grants. Page 198 of 201 7 | Page Recommendation Staff recommends that Council implement all of the banked capacity available to the City and authorize the issuance of LTGO bonds to be serviced with the banked capacity for following reasons: 1. Council had been banking the levy authority to fund future capital projects like Fire Stations and the Community Center. 2. The McCleary Act creates a one-time windfall of historic proportions for all property taxpayers in the City by reducing the property tax for residents by approximately $2.44 per $1,000 assessed value. This provides the City a rare opportunity to take the banked capacity without significantly impacting the tax burden of its residents. The graph below illustrates the actual property tax amounts collected in 2016, 2017, projected for 2018 based on current levy rates, and estimated for 2019. The increase in the 2018 tax is due to the increase in State taxes to fund basic education, whereas the drop in 2019 represents the decrease in the School Maintenance and Operation Bond from the current amount of $3.94 to $1.50 per $1,000 assessed value. This drop represents a significant decrease of $488 a year for a home with an assessed value of $200,000. As previously mentioned, the estimated increase in property tax due to the City taking the banked capacity is estimated at $44 annually for the same home. The property owner will still benefit from a substantial decrease in property tax. 3. Council has made a significant investment to the public safety services in last five years. This includes an increase in staffing, investment in infrastructure – for example, the temporary Fire Station and Burn Training Prop – consolidation of emergency dispatch services, and the addition of programs such as Community Risk Reduction. This long-term vision and commitment to the community has made a significant impact; the City has been recognized as the third safest City in Washington and the Washington State Rating Bureau has improved the community rating from Class 5 to Class 3. The improvement to the City’s community rating class alone equates to an estimated savings of $100 per year Page 199 of 201 8 | Page for a typical household within the City, more than double the impact of the increased City levy, should the Council implement all of the City’s banked capacity. 4. Finally, Staff spent a considerable amount of effort to reinstate the banked capacity from $400,000 to the current $1,859,000. There are lingering concerns over the future of the current capacity and any subsequent audits that might reduce it further. Staff is confident that the City and the Franklin County Assessor’s Office have been correctly banking the capacity. The City is not the primary party to certify levies to the State; the County does. As we have experienced, the risk of any mistake, not just by the City, but by the County or the State can negatively affect the official banked capacity of the City. In this case, the tenacity of the Finance Director is what brought life back to this alternative. Staff is requesting Council to consider the following options: Option A: Council would fund the fire stations through a UTGO and have a voted bond pay for the resulting debt service. This option increases the property tax rate by $.29 or $59 per year for a home assessed at $200,000. Option B: Council would opt to take $1.5 million of levy capacity banked by the Council in previous years to fund debt service for the fire stations and leave the remaining banked capacity to be implemented, or not, at some point in the future. This option increases the property tax rate by $.156 or $31 per year for a home assessed at $200,000 Option C: Recommended option, Council would implement all of the levy capacity banked by the Council in the previous years. This will help the City fund debt service for the Fire Stations, the Community Center, Levee Lowering, and other large infrastructure projects, if Council decides to undertake them. This option increases the property tax rate by $.222 or $44 per year for a home assessed at $200,000. As an alternative to the options outlined above, Council could opt not to construct the new stations at this time. This would result in limiting growth in the Broadmoor area due to the limited reach of Station 83 in its current location, and the continued use of temporary Station 84 which was built for another time and purpose and does not meet standards. Conclusion and Recommendation In summary,  A voted UTGO Bond will conservatively add nearly $1.8 million in construction costs to the project due to a two-year delay in the construction schedule.  Implementation of banked capacity, Options B and C, will potentially generate similar concerns as the difference in impact between the two is minimal.  Through Council’s prior actions in the area of fire protection and community safety, the resulting Class 3 designation will save the example $200,000 home an estimated $100 annually on homeowners insurance. All properties across the community will enjoy a $2.44 per thousand of assessed valuation decrease in Page 200 of 201 9 | Page overall property taxes equating to an annual reduction of $488 for the example $200,000 home.  Finally, the need for the Fire Stations, but also the Community Center, and possible backfill for the police and fire grants as they time out, are all justified needs of the community. This writer does not take the topic of property tax increases or the exercise of unilateral authority of City Council lightly; however, the aforementioned factors coexisting at one point in time represent a minimal impact on the community tax-wise, while providing a maximum benefit service-wise and are a set of circumstances one could only imagine. If there is ever a time to use banked capacity, in my experience, and based on the unique circumstances at-hand, such an action could not be more easily explained, justified and defended. For these reasons, Staff will be recommending that the Council opt to exercise Option C by levying the full $1,859,000 of banked capacity during the Ad Valorem Tax discussion Monday evening. Council is not anticipated to take potential action on this recommendation until the October 29th Special Meeting. Page 201 of 201