HomeMy WebLinkAbout2019.05.28 Council Workshop PacketWorkshop Meeting
AGENDA
PASCO CITY COUNCIL
7:00 p.m.
May 28, 2019
Page
1. CALL TO ORDER:
2. ROLL CALL:
(a) Pledge of Allegiance
3. VERBAL REPORTS FROM COUNCILMEMBERS:
4. ITEMS FOR DISCUSSION:
3 - 25 (a) Pasco Public Facilities District Board Annual Financial Report
26 - 28 (b) Parks & Recreation Advisory Board Interviews
Council to conduct brief interviews with Bradyn Leyde and Jane Whitmire
29 - 31 (c) Planning Commission Interviews
Council to conduct brief interviews with Anne Jordan, Daniel Hollibaugh,
Jerry Cochran, Alejandro Romero, and Alexander Kegel
32 - 49 (d) Update of Business Licensing Program
50 - 55 (e) Proposed Ambulance Fee Update
56 - 62 (f) SRO 2019 Summer School Interagency Agreement
5. MISCELLANEOUS COUNCIL DISCUSSION:
6. EXECUTIVE SESSION:
7. ADJOURNMENT.
REMINDERS: NA
This meeting is broadcast live on PSC-TV Channel 191 on Charter Cable and
streamed at www.pasco-wa.gov/psctvlive.
Page 1 of 62
Workshop Meeting May 28, 2019
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 62
AGENDA REPORT
FOR: City Council May 28, 2019
TO: Dave Zabell, City Manager Workshop Meeting: 5/28/19
FROM: Stan Strebel, Deputy City Manager
Executive
SUBJECT: Pasco Public Facilities District Board Annual Financial Report
I. REFERENCE(S):
PFD Board President Message
PFD Annual Financial Statements - 2018
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
Provide an annual financial report in accordance with Article 8 of the District Charter,
established under Pasco Ordinance No. 3558.
V. DISCUSSION:
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PASCO PUBLIC FACILIT IES DISTRICT
Pasco, Washington
ANNUAL FINANCIAL STATEMENTS
For the fiscal year ended
December 31, 2018
Prepared by:
Finance Department
Richa Sigdel – Director
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TABLE OF CONTENTS
Directory of Board of Directors .................................................... 1
Management’s Discussion and Analysis ............................................. 2
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position ........................................................... 8
Statement of Activities ................................................................ 9
Fund Financial Statements
Balance Sheet – Governmental Fund ........................................ 10
Statement of Revenues, Expenditures and Changes in Fund
Balance – Governmental Fund .................................................. 11
Statement of Revenues , Expenditures and Changes in Fund
Balance - Governmental Fund Budget to Actual ....................... 12
Notes to the Financial Statements ....................................................... 13
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Pasco Public Facilities District 2018 Annual Financial Report
1
Directory of Board Directors
As of December 31, 2018
APPOINTED DIRECTORS TERM EXPIRES
PRESIDENT
Mark Morrissette 7/14/2020
VICE PRESIDENT
Leonard Dietrich 7/14/2022
DIRECTORS
Spencer Jilek 7/14/2021
Caroline Bowdish 7/14/2019
Marie Gillespie 7/14/2022
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Pasco Public Facilities District 2018 Annual Financial Report
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Management’s Discussion and Analysis
This management discussion and analysis of the Pasco Public Facilities District’s (PPFD) financial
performa nce provides an overview of the financial activities for the year ended December 31,
2018. Please read it in conjunction with the accompanying basic financial statements and the notes
to the financial statements.
Financial Highlights
The assets of the PPFD exceeded its liabilities at December 31, 2018 by $27,033.
The PP FD program revenues exceeded its expenses by $9,755.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the PP FD’s basic financial
statements. Those financial statements comprise three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains other required supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government -wide financial statements are designed
to provide readers with a broad overview of the PPFD ’s finances in a manner similar to a private-
sector business. The Statement of Net Position presents information on all of the assets and
liabilities with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the
PPFD is improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes).
The government -wide financial statements include a single function (classified as culture and
recreation) which is primarily supported by taxes and intergovernmental revenues (Governmental
Activities). The PPFD currently does not have any business-type activities. The governmental
activit y of the PPFD is to provide support to the Kennewick Convention Center. In addition, the
PPFD conducts some project concept planning and evaluation work through consultant contracts.
The government -wide financial statements can be found on pages 8-9 of this report.
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Pasco Public Facilities District 2018 Annual Financial Report
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Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The PPFD
like other governments uses fund accounting to ensure and demonstrate compliance with finance-
relat ed legal requirements.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike
the government -wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statements of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The PPFD maintains just one governmental fund; the general fund. Information is presented in
the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures and changes in fund balances. The general fund is a major fund as defined by the
Governmental Accounting Standards Board (GASB).
The PPFD adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found starting on page 8 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential to
a full understanding of the data provided in the fund statements. The notes to the financial
statements can be found starting on page 13.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the PPFD, assets exceeded liabilities by $27,033 at year end 2018. All of
the PPFD’s net position represents working capital (current assets minus current liabilities), as it
does not have any investments in long term capital assets or long term debt obligations. At the end
of the current and prior fiscal years, the PPFD was able to report positive net position. As of end
of 2018, the government’s net position increased by $9,755. Payables represent the amount of sales
taxes payable to the Kennewick Public Facilities District (KPFD), per inter-local agreement .
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Pasco Public Facilities District 2018 Annual Financial Report
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The following table is a comparison of current and prior year assets and liabilities.
Statement of Changes in Net Position
The following condensed table of changes in net assets compares the revenues and expenses for
the current year to prior year.
The primary revenue of the PPFD is sales tax. In addition to sales tax, the City contributes $20,000
annually and there is a small amount of interest earned on fund assets. The largest expense to the
fund is the pass through payment of sales tax ($551,578) to KPFD. Other expenses are
administrative in nature and there are occasional consulting or legal fees associated with potential
future projects.
Total Primary Government
2018 2017 2018 2017
Current assets 165,100$ 146,606$ 165,100$ 146,606$
Current liabilities 138,067 129,328 138,067 129,328
Total net position 27,033$ 17,278$ 27,033$ 17,278$
Governmental Activities
Pasco Public Facility District Net Position
Total Primary Government
2018 2017 2018 2017
Program revenues 20,389$ 20,329$ 20,389$ 20,329$
General revenues 551,378 513,004 551,378 513,004
Total revenues 571,767 533,333 571,767 533,333
Program expenses 562,012 533,926 562,012 533,926
Changes in net position 9,755$ (593)$ 9,755$ (593)$
Pasco Public Facility District Changes in Net Position
Governmental Activities
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Pasco Public Facilities District 2018 Annual Financial Report
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Financial Analysis of the Government’s Funds.
The PPFD uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements.
Governmental funds. The focus of the PPFD’s Governmental Funds is to provide information on
near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the PPFD financing requirements. In particular, unrestricted fund balance may serve as
a useful measure of a government’s net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the PPFD’s only governmental fund is its general fund.
The general fund is the chief operating fund of the PPFD and reported an ending fund balance of
$27,033, which represents an increase of $9,755, in comparison with the prior year. All of fund
balance cons ists of unassigned fund balance, which is available for spending at the board’s
discretion.
Overall, in 2018 revenues increased by $38,434 and total expenditures increased by $28,086. The
increase in revenue is a direct result of a 7.5% increase in sales tax in 2018. Generally, the revenues
and expenditures are expected to experience similar increases/decreases with most variances
relating to one-time expenditures for consulting or other services.
General Fund Budgetary Highlights
Sales tax revenue exceeded the budgeted amount and reflected a variance of 10.3% in 2018.
Continued growth in sales tax, and subsequent pass through payments to KPFD have resulted in
over budget amounts for revenues and expenditures. Total revenues at year end reflected a variance
of 9.9 % while total expenditures showed a variance o f 8.9 %.
Economic Factors and Next Year’s Budget
Ongoing residential and commercial development in Pasco continues to fuel the growth in sales
tax revenue s. 2018’s budget was developed with a conservative approach and t he expectation that
2018 activity would closely parallel 2017’s actual revenues and expenditures. The 2019 budget
reflects the significant growth in revenue that we have recognized in the previous two years.
Requests for Information
This financial report is designed to provide a general overview of the Pasco Public Facilities
District ’s finances for all tho se with an interest in the government’s finances. Questions concerning
any of the information provided in this report or requests for additional financial information
should be addressed to the Finance Director, City of Pasco , P.O. Box 293, Pasco, WA 99301.
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BASIC FINANCIAL STATEMENTS
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Governmental Total Primary
Activities Government
ASSETS
Cash and Investments 74,104$ 74,104$
Taxes Receivable 90,996 90,996
Total Assets 165,100 165,100
LIABILITIES
Accounts Payable 138,067 138,067
Total Liabilities 138,067 138,067
FUND BALANCES
Unrestricted 27,033 27,033
Total Fund Balance 27,033$ 27,033$
The notes to the financial statements are an integral part of this statement.
As of December 31, 2018
STATEMENT OF NET POSITION
PASCO PUBLIC FACILITIES DISTRICT
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Charges for Operating Capital Governmental Total Primary
Functional Programs Expenses Services Grants Grants Activities Government
Primary Government
Governmental Activities:
Cultural & Community Activities 562,012$ -$ 20,000$ -$ (542,012)$ (542,012)$
Total Governmental Activities 562,012 - 20,000 - (542,012) (542,012)
Total Primary Government 562,012$ -$ 20,000$ -$
General Revenue:
Taxes 551,378 551,378
Investment Earnings 389 389
Total General Revenues 551,767 551,767
Change in Net Position 9,755 9,755
Net Position Beginning 17,278 17,278
Net Position Ending 27,033$ 27,033$
The notes to the financial statements are an integral part of this statement.
For the Year Ended December 31, 2018
STATEMENT OF ACTIVITIES
PASCO PUBLIC FACILITIES DISTRICT
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ASSETS
Cash 74,104$
Sales Tax Receivable 90,996
Prepaid Insurance -
TOTAL ASSETS 165,100
LIABILITIES
Accounts Payable 138,067
TOTAL LIABILITIES 138,067
TOTAL NET ASSETS 27,033$
The notes to the financial statements are an integral part of this statement.
PASCO PUBLIC FACILITIES DISTRICT
BALANCE SHEET
As of December 31, 2018
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2018 2018
Budget Actual
REVENUES
Sales Tax 500,000$ 551,378$
Interlocal Agreement-Pasco 20,000 20,000
Interest Income 200 389
Total Revenues 520,200 571,767
EXPENDITURES
Advertising/Publications 500 67
Legal Services 1,200 1,062
Kennewick PFD 500,000 551,578
Professional Services 5,000 66
Insurance 3,150 3,146
Administrative Services 6,094 6,094
Total Expenditures 515,944 562,012
Net Change in Fund Balances 4,256 9,755
Beginning Fund Balance, January 1 20,000 17,278
Ending Fund Balance 24,256$ 27,033$
The notes to the financial statements are an integral part of this statement.
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
For Year Ending December 31, 2018
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Original Final
Budget Budget Actual Variance %Variance
REVENUES
Sales Tax 500,000$ 500,000$ 551,378 10.3%51,378$
Transfers In - City of Pasco (Interlocal Agreement)20,000 20,000 20,000 0.0%-
Interest Income 200 200 390 95.0%190
Total Revenues 520,200 520,200 571,768 9.9%51,568
EXPENDITURES
Current
Culture and Community Activities
Legal Services 1,200 1,200 1,062 -11.5%(138)
Professional Services 5,000 5,000 66 -98.7%(4,934)
Advertising/Publications 500 500 67 -86.7%(433)
Insurance 3,150 3,150 3,146 -0.1%(4)
Kennewick PFD 500,000 500,000 551,578 10.3%51,578
Administrative Services 6,094 6,094 6,094 0.0%-
Total Expenditures 515,944 515,944 562,012 8.9%46,068
Net Change in fund balance 4,256 4,256 9,755 129.2%5,499
Fund Balance - Beginning 20,000 20,000 17,278 -13.6%(2,722)
Fund Balance - Ending 24,256$ 24,256$ 27,033$ 11.4%2,777$
The notes to the financial statements are an integral part of this statement.
PASCO PUBLIC FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
BUDGET TO ACTUAL - GENERAL FUND
Year to Date Ending December 31, 2018
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the PPFD have been prepared in conformity with Generally Accepted
Accounting Principles (GAAP) as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The following is a summary of the more significant
policies.
A. Reporting Entity
The PPFD was created by the Council of the City the Pasco by passage of Ordinance No. 3558
on July 15, 2002, to participate in acquisition, construction, operation, and/or financing of a
regional center (as defined in RCW 35.57) in the Tri-Cities area.
State law, as defined in the Revised Code of Washington (RCW) Chapter 35.57 (the City PFD
Act), authorizes the City Council, as the legislative authority of the City, to create a public
facilities district coextensive with the boundaries of the City for the purposes, among others,
of acquiring, constructing, operating, and financing one or more “Regional Centers” through
cooperative and joint ve ntures with one or more qualifying public facilities districts.
A Regional Center is defined in the City Public Facilities District (PFD) Act as “…convention,
conference, or special events center, or any combination of facilities, and related parking
facilities, serving a regional population constructed, improved or rehabilitated after July 25,
1999 at a cost of at least $10,000,000 including debt service.”
State law also states a public facilities district created before July 31, 2002 that commences
construction or improvement of a Regional Center before January 1, 2004 may impose, solely
for Regional Center Purposes, a 0.033% sales and use tax. The Sales Tax operates to shift a
share of the State’s sales and use tax revenues to the public facilities dist rict at no additional
cost to taxpayers.
The Board of Directors is comprised of 5 members; two members appointed by the City
Council and 3 members appointed by the City Council based on recommendations from local
organizations. The Board then elects a President, a Vice President, and a Secretary/Treasurer.
The initial appointment of the Board called for one - one year term, one - two year term, one -
three year term and two - four year terms. Thereafter, appointments are for four year terms.
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B. Government-wide and fund financial statements
The government –wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the non-fiduciary activities of the primary
government. As there is just one fund, the general fund, there is no interfund activity in these
statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support. The PPFD had no business-type
activities in the current or prior year.
The S tatement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. The PPFD policy is to not allocate indirect
costs to a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting
the operational or capital requirements for a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
C. Measurement focus, basis of accounting, and financial statement presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting.
The PPFD reports the general fund as a major governmental fund. The general fund is the
PPFD’s primary operating fund. It accounts for all governmental financial resources.
Amounts reported as program revenues include 1) charges to customers, 2) operating grants
and contributions, and 3) capital grants and contributions. General revenues include all taxes.
The PPFD does not have a flow of funds policy and therefore utilizes the default provided by
GASB 54 which assumes restricted assets are used before unrestricted assets.
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Pasco Public Facilities District 2018 Annual Financial Report
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D. Assets, liabilities and equities
Deposits and investments
The government’s cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or le ss from the
date of acquisition and include amount invested in the State of Washington’s Local
Government Investment pool. This is done via City of Pasco’s City Treasurer. The investments
are held in the City of Pasco’s name and are recorded in the City accounts, as held on behalf of
the PPFD.
Receivables and payables
Receivable s consist of sales taxes receivable. Payables result from an inter-local agreement
with the KPFD that all sales tax received will be passed through to the KPFD.
Fund balance and fund flow policies
Fund balance of governmental funds is reported in various categories based on the nature of
any limitations requiring the use of resources for specific purposes. The District itself can
establish limitations on the use of resources through either a commitment (committed fund
balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for specific
purposes determined by formal action of the District ’s highest level of decision-making
authority. The Board is the highest level of decision making authority for the government that
can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once
adopted, the limitation imposed by the ordinance remains in place until a similar action is taken
(the adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the government
for specific purposes but do not meet the criteria to be classified as committed. The Board may
also assign fund balance as it does when appropriating fund balance to cover a gap between
estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike
commitments, assignments generally only exist temporarily. In other words, an additional
action does not normally have to be taken for the r emoval of an assignment. Conversely, as
discussed above, an additional action is essential to either remove or revise a commitment.
The District has not adopted a specific flow of funds policy relating to the use of restricted and
unrestricted resources when both are available. Therefore the statements are prepared using the
default option provided in GASB 54 which provides that when both restricted and unrestricted
resources are available, restricted resources are used first.
In the fund financial statements, governmental funds report restrictions of fund balance as
follows:
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Pasco Public Facilities District 2018 Annual Financial Report
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Non spendable fund balance - includes amounts that are not in spendable form such as
inventory or are required to be maintained intact such as the principal of a permanent fund.
Restricted fund balance - includes amounts that can be spent only for the specific purpose
stipulated by external resource providers such as for grant providers, bondholders, higher levels
of government, or through enabling legislation.
Committed fund balance – includes amounts that can be used only for the specific purposes
determined by a formal action of the Board. Commitments may be changed or lifted only by
the Board taking the same formal action that imposed the constraint originally.
Assigned fund balance – includes amounts intended to be used by the District for specific
purposes. Intent can be expressed by the governing body or by an official designated by the
governing body to which the governing body designates authority.
Unassigned fund balance - includes amounts that are available for any purpose.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Scope of Budgetary Accounting. Annual appropriated budgets are adopted for the PPFD on
the modified accrual basis of accounting. Annual appropriated budgets are adopted at the major
expenditure category level. Appropriations lapse at year-end. Budgetary accounts are
integrated in fund ledgers for all budgeted funds.
Amending the Budget. When the Board determines it is in the best interest of the PPFD to
increase or decrease the appropriation for a particular item, it may do so with a motion approved
by a n affirmative vote of at least three Board members.
The financial statements contain the original and final budget information. The original budget
is the first complete appropriated budget. The final budget is the original budget adjusted by
any authorized amendments.
Budget Compliance. The PPFD expenditures exceeded the budget appropriation by $46,068.
This is a direct result of sales tax revenue exceeding budget expectations and the interlocal
agreement that mandates all revenues are passed through to the KPFD.
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Pasco Public Facilities District 2018 Annual Financial Report
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NOTE 3 – DETAILED NOTES ON ALL FUNDS
A. Deposits and investments
As of December 31, 2018 the government had the following:
Weighted Average
Fair Value Maturities (Years)
Total Invested Cash Equivalents $74,104 N/A
Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. The PPFD does not have an investment policy, but manages
its exposure to declines in fair value by limiting investing only in the State of Washington’s
Local Government Investment Pool (LGIP).
Credit risk. Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The PPFD does not have an investment policy, but manages its exposure
to credit risk by limiting investing only in the State of Washington’s LGIP.
Concentration of credit risk. Concentration of credit risk is the risk of loss attributed to the
magnitude of a government’s investment in a single issuer. The PPFD does not have an
investment policy, but manages its exposure to concentration of credit risk by limiting
investing only in the State of Washington’s Local Government Investment Pool. The LGIP
invests in a variety of governmentally issued securities.
Custodial credit risk – deposits. This is the risk that in the event of a bank failure, the
governments’ deposits may not be returned. The PPFD does not have a deposit policy, but
manages its exposure to custodial risk by investing 100% of its fund in the State of
Washington’s Local Government Investment Pool and therefore does not maintain any
deposits in a bank.
Custodial credit risk – investments. For an investment, this is the risk that, in the event of the
failure of the counterparty, the government will be able to recover the value of its investments
or other collateral securities that are in the possession of an outside party. The PPFD does not
have a custodial credit risk policy, but manages its exposure by investing 100% of its funds in
the State of Washington’s Local Government Investment Pool.
B. Receivables and payables
Taxes receivable. The PPFD received November and December 2018 sales tax distributions
from the State of Washington in January and February 2019, respectively. The State receives
the sales tax from business in the month following the sales. It is then tabulated and distributed
to cities and counties the following month. As receivables are recognized when earned, the
sales taxes from underlying sales transactions are recognized as receivables in the period they
are earned. Per the inter-local agreement, 100% of the sales tax received is owed to KPFD.
Sales taxes are received on the last day of the month, creating a payable which is then paid to
KPFD during the next month.
Page 24 of 62
Pasco Public Facilities District 2018 Annual Financial Report
18
NOTE 4 - OTHER INFORMATION
A. Risk Management
The PPFD owns no property and does not hire any employees. Therefore, the PPFD does not
carry any insurance other than maintaining coverage for officials’ errors and omissions. In
2018, there were no policy coverage changes, claims, nor settlements.
B. Related organization
City of Pasco. Pursuant to RCW 35.57 (the “City PFD Act”) the Pasco Public Facilities
District was formed and created by City of Pasco Ordinance No. 3558 on July 15, 2002,
coextensive with the boundaries of the City of Pasco, with the powers and authority set forth
in the City PFD Act.
All corporate powers of the PPFD are exercised by or under the authority of the PPFD Board;
and the business, property and affairs of the PPFD are managed under the direction of the
PPFD Board, except as may be otherwise provided in the Charter. The PPFD operates
independently from the City of Pasco .
The PPFD contracts with the City of P asco to administer its accounting operations, manage its
cash and provide organizational administrative support. Sales tax proceeds are received by the
City for the benefit of the PPFD. The City Treasurer disburses funds on behalf of the PPFD
and invests any surplus amounts commingled with City investments. Separate accounts are
maintained within the City to designate and hold separately amounts on behalf of the PPFD.
Page 25 of 62
AGENDA REPORT
FOR: City Council May 17, 2019
TO: Dave Zabell, City Manager Workshop Meeting: 5/28/19
FROM: Stan Strebel, Deputy City Manager
Executive
SUBJECT: Parks & Recreation Advisory Board Interviews
I. REFERENCE(S):
Resolution No. 3388 - Appointments to City Boards and Commissions
Applications (2) (Council only)
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Council to conduct brief interviews with Bradyn Leyde and Jane Whitmire
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
The Parks and Recreation Advisory Board is composed of nine members; terms are
three years. The Board meets on the 1st Thursday of every month at 5:30pm.
The Parks and Recreation Advisory Board advises the City Council on recreation
activities and facilities needed in the community.
At the present time, there are two vacant, unexpired terms:
1. Position No. 5 (vacant) term expiration date of 2/2/21
2. Position No. 8 (vacant) term expiration date of 2/2/21
After Council screening committee review of all applications, the following have been
selected to interview for possible appointment to Positions No. 5 and 8:
1. Bradyn Leyde
2. Jane Whitmire
V. DISCUSSION:
After conduct of interviews at the May 28 Workshop meeting, it is proposed that
Page 26 of 62
appropriate appointments be made by the Mayor, subject to confirmation by the
Council at the June 3 Business meeting.
Page 27 of 62
RESOLUTION NO. `
A RESOLUTION Providing a Process for Appointments to City Boards and
Commissions.
WHEREAS, the City of Pasco maintains several citizen advisory boards to assist the delivery of
municipal services as well as to advise the City Council in making various policy decisions; and
WHEREAS, the appointment process prescribed by the Pasco Municipal Code requires the Mayor
to appoint citizens to vacancies on such boards, subject to confirmation of the City Council; and
WHEREAS, the Mayor and City Council desire to establish an appointment process which is more
collaborative yet efficient for both the applicants and City Council alike;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVES AS
FOLLOWS:
Section 1: Applications for city boards and commissions shall be solicited annually by the City
Manager on behalf of the City Council.
Section 2: All applications received by the City Manager shall be reviewed by a City Council
committee appointed by the Mayor; such committee, to be known as the "Appointment Screening
Committee," shall be ad-hoc, appointed annually, and consist of three members, including the Mayor. The
Appointment Screening Committee shall select those applicants it deems best suited for the respective
board/commission but not more than three applicants for each vacancy to be filled. The Appointment
Screening Committee shall consider the following factors in making their selections for further
consideration:
a) Geographic representation;
b) Gender representation;
c) Ethnic representation;
d) Familial and financial relationships of board members
Section 3: Those applicants selected by the Appointment Screening Committee shall be
interviewed by the City Council during a public meeting; provided, however, the Screening Committee may
recommend reappointment of an incumbent applicant without interview by the City Council if the incumbent
has •-- • - - -•served not more than two consecutive•
terms since the last interview. At a City Council meeting following such interview, an interviewed candidate
shall be selected by the Mayor for appointment to each vacancy. Any candidate selected by the Mayor shall
be subject to confirmation vote of the City Council; a majority vote of the quorum present at such meeting
shall be required to confirm the Mayor's appointments.
Section 4: Any prior resolutions of the City Council in conflict with the provisions of this
resolution shall be superseded by this resolution.
PAS D by the City Council ity of Pasco at its regular meeting this 16th day of April, 2012.
Matt Watkins, Mayor
T T: f APP'S AS TO FORM:
Debra Clark,City Clerk Leland B. Kerr, City Attorney
Page 28 of 62
AGENDA REPORT
FOR: City Council May 22, 2019
TO: Dave Zabell, City Manager Workshop Meeting: 5/28/19
FROM: Stan Strebel, Deputy City Manager
Executive
SUBJECT: Planning Commission Interviews
I. REFERENCE(S):
Resolution No. 3388
Applications (5) (Council only)
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Council to conduct brief interviews with Anne Jordan, Daniel Hollibaugh, Jerry
Cochran, Alejandro Romero, and Alexander Kegel
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
The Planning Commission is composed of nine members; terms are for six years. The
Commission meets on the third Thursday of each month at 7:00 pm.
The Planning Commission conducts workshop meetings and public hearings on land-
use policy and development proposals and issues recommendations for the City
Council.
At the present time, there are three vacancies:
1) Position No. 4 (vacant) term expiration of 2/2/24
2) Position No. 5 (vacant) term expiration 2/2/25
3) Position No. 9 (vacant) term expiration 2/2/21
Upon a review of all applications indicating an interest in the Planning Commission,
the Council Screening Committee selected the following candidates to be interviewed
for possible appointment to Position No. 4, 5 and 9:
1. Anne Jordan
2. Daniel Hollibaugh
Page 29 of 62
3. Jerry Cochran
4. Alejandro Romero
5. Alexander Kegel
V. DISCUSSION:
After conduct of interviews at the May 28 Workshop meeting, it is proposed that
appropriate appointments be made by the Mayor, subject to confirmation by the
Council at the June 3 Business meeting.
Page 30 of 62
RESOLUTION NO. `
A RESOLUTION Providing a Process for Appointments to City Boards and
Commissions.
WHEREAS, the City of Pasco maintains several citizen advisory boards to assist the delivery of
municipal services as well as to advise the City Council in making various policy decisions; and
WHEREAS, the appointment process prescribed by the Pasco Municipal Code requires the Mayor
to appoint citizens to vacancies on such boards, subject to confirmation of the City Council; and
WHEREAS, the Mayor and City Council desire to establish an appointment process which is more
collaborative yet efficient for both the applicants and City Council alike;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVES AS
FOLLOWS:
Section 1: Applications for city boards and commissions shall be solicited annually by the City
Manager on behalf of the City Council.
Section 2: All applications received by the City Manager shall be reviewed by a City Council
committee appointed by the Mayor; such committee, to be known as the "Appointment Screening
Committee," shall be ad-hoc, appointed annually, and consist of three members, including the Mayor. The
Appointment Screening Committee shall select those applicants it deems best suited for the respective
board/commission but not more than three applicants for each vacancy to be filled. The Appointment
Screening Committee shall consider the following factors in making their selections for further
consideration:
a) Geographic representation;
b) Gender representation;
c) Ethnic representation;
d) Familial and financial relationships of board members
Section 3: Those applicants selected by the Appointment Screening Committee shall be
interviewed by the City Council during a public meeting; provided, however, the Screening Committee may
recommend reappointment of an incumbent applicant without interview by the City Council if the incumbent
has •-- • - - -•served not more than two consecutive•
terms since the last interview. At a City Council meeting following such interview, an interviewed candidate
shall be selected by the Mayor for appointment to each vacancy. Any candidate selected by the Mayor shall
be subject to confirmation vote of the City Council; a majority vote of the quorum present at such meeting
shall be required to confirm the Mayor's appointments.
Section 4: Any prior resolutions of the City Council in conflict with the provisions of this
resolution shall be superseded by this resolution.
PAS D by the City Council ity of Pasco at its regular meeting this 16th day of April, 2012.
Matt Watkins, Mayor
T T: f APP'S AS TO FORM:
Debra Clark,City Clerk Leland B. Kerr, City Attorney
Page 31 of 62
AGENDA REPORT
FOR: City Council May 20, 2019
TO: Dave Zabell, City Manager Workshop Meeting: 5/28/19
FROM: Richa Sigdel, Finance Director
Finance
SUBJECT: Update of Business Licensing Program
I. REFERENCE(S):
PowerPoint Presentation
Proposed Ordinance
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Minimal Reduction in Licensing Revenue
IV. HISTORY AND FACTS BRIEF:
The State Legislature passed Business License Bill HB-2005 on July 23, 2017
requiring all cities with business license programs to partner for administration of
general business licenses with the Washington State Business License Services (BLS).
The bill further required cities to adopt a model business license threshold to
standa approved Council 2017, late In rdize the throughout licensing State.
recommendations made by staff that included extensive changes to the City's business
license program to comply with said law. At the time of adoption Council requested
Staff to report on the status once sufficient time had passed.
V. DISCUSSION:
Staff has been closely monitoring the program since its full implementation on March,
2018 and based on experience of administration and impact to business owners, staff is
recommending several changes for improvement. The changes primarily involve
clarification of language, correction of errors, and a recommendation to add a cap to
Page 32 of 62
the business license fee. While most of the changes are minor in nature, listed below
are the larger changes to the current code:
1. To prevent confusion, any licensing done directly through the City would be
labeled as a "Regulatory License." This reference would make the Pasco
Municipal Code (PMC) consistent with how the State and other Cities refer to
licenses issued directly by the City and that have special requirements and fees
attached to them.
2. Clarify PMC 5.05.170 (1) (Monetary Threshold) section in reference to "a place
of business." The monetary threshold applies to those businesses that do not
maintain a place of business. The addition of the language "at a commercial
location" would clarify that a brick and mortar business with a physical location
that customers can visit to conduct business would be considered a "place of
business."
3. Apply a late payment fee to all Regulatory Licenses so that penalty fees are
applied consistently to all delinquent licenses regardless of the issuing agency.
4. Limit the business license fees to a maximum of $5,000.
Staff is of the opinion that these changes will improve efficiency, equity, service to the
licensed businesses within the City and recommends the Council discuss and provide
direction to implement the recommended changes.
Page 33 of 62
Pasco City Council Meeting
May 28, 2019
Page 34 of 62
Changes in Business Licensing
Business License Bill (HB –2005) required all cities with a
business license program :
Partner on administration of business licenses with Washington State
Business License Service (BLS)
Adopt a standard model business license threshold by January 2019
City of Pasco implemented BLS partnership in March 2018
Established new simplified billing structure consisting of a base
fee and fee per employee
Page 35 of 62
Year in Review
BUSINESS LICENSING EXPERIENCE
Businesses already familiar with BLS
Vast majority appreciate the convenience
Increased compliance of Pasco Municipal Code
Increased in number of business licenses by 55%
Customers having difficulty identifying the correct
number of Full-Time Equivalent (FTE) employees
Page 36 of 62
Recommended Changes
BUSINESS LICENSING:
Changes to code to clarify current language
Apply late fee for licenses issued by City to be consistent
with general business license issued by BLS
Cap license fee at $5,000
Page 37 of 62
Changes in Ambulance Rate Structure
The City charges a monthly ambulance charge to fund the availability cost of
ambulance services
Historically, residential and commercial properties paid the same flat rate, an
inequity frequently cited and an inequity Council wanted to address
A 2015 rate analysis recommended the City adopt billing classifications
recognizing the difference in demand between different land uses
City’s recently adopted billing structure provides for categories:
1.Residential (Single and Multi-family) -Each residential unit
2.Commercial Business and Industries -Equivalent residential unit based on number of
full-time equivalent
3.Assisted Living and Nursing Homes -Number of occupants
4.Hotels/Motels -Equivalent residential unit based on occupancy and number of roomsPage 38 of 62
Year in Review
AMBULANCE UTILITY EXPERIENCE
Increase in number of ambulance units by 14%
Rate inequities mostly addressed –Hotel/Motel and
Assisted Living classifications cumbersome
Significant change to many businesses
Manual process for City employees to combine Utility
data with Business License data
Page 39 of 62
Recommended Changes
AMBULANCE UTILITY RATE
Modify code to clarify current language
Clarify responsible party for service fee payment
Combine Assisted Living and Hotel/Motel category into
Commercial/Industrial category
Page 40 of 62
Future
Continuous review of code, process, and policy
Pro-active in reviewing necessary policy issues with
Council as improvement opportunities arise
Monitor future legislation Page 41 of 62
ORDINANCE NO_______
AN ORDINANCE of the City of Pasco, Washington, amending Pasco
Municipal Code Title 5 “Business Licenses and Regulations” providing for
participation in the Washington State Business License Service; and
amending PMC Section 3.35 “Business Licenses.”
WHEREAS, The State Legislature passed Business License Bill HB-2005 July
23, 2017 requiring all cities with business license program to partner for administration
of general business license with Washington State Business License Services (BLS),
and
WHEREAS, The City adopted changes to its business license program to comply
with Bill HB-2005, and
NOW, THEREFORE, The City Council has determined that certain amendments
to the municipal code regarding business licenses are needed, as follows:
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. PMC Section 5.05.010 Definition is hereby amended and shall read
as follows:
“Regulatory License” means a license with requirements and/or fees that is
issued directly through the City. Regulatory Licenses include Ambulance Service;
Adult Entertainment Facility; Special Events and Entertainment; Juke Boxes,
Pinball Games and Other Amusement Devices; Utilities; Rental; Solicitors and
Residential Soliciting; Pawnbrokers and Secondhand Dealers; Flea Markets,
Swap Meets, Buy-Sell Marts and the Like; Rummage and Yard Sales; Sidewalk
Sales; Fireworks Sales and Wholesale Distribution; Taxicab and Transportation
Network Companies; and Occupancy Registration.
Section 2. PMC Section 5.05.030 Procedure for issuance of license is hereby
amended and shall read as follows:
(1) Every person required to procure a license under this chapter must submit a
complete business license application to the Business Licensing Service. In the
case of licenses regulated through other chapters of this title, Regulatory licenses
the application must be submitted directly to the City on the appropriate form or
in the manner provided by the City, and provide all information and fees required
by the City.
(a) Unless otherwise provided, a complete application must be approved
or disapproved by the City within 15 working days of receipt by the City.
(2) License Renewal Procedure. The licensee must submit a complete renewal
Page 42 of 62
application to the Business Licensing Service and provide all information and pay
all fees due. In the case of licenses regulated under other chapters of this title
Regulatory licenses, the renewal must be submitted directly to the City on forms
or in the manner provided by the City, and must provide all information and fees
required by the City. The renewal application must provide information concerning
the applicant’s business during the preceding licensing period reasonably
necessary to determine his eligibility for a renewal license and the computation
of license fees.
(3) Duplicate License Procedure. To receive a replacement license that was
issued under this chapter, the licensee must contact the Business Licensing
Service. For Regulatory licenses issued under other chapters of this title, the
licensee must ask the City for a duplicate license. Duplicate licenses issued
through the City will be issued for the amount indicated in the fee schedule in
PMC 3.35.050.
(4) License Changes. When a licensee must update the business license
account record created under this chapter, or intends to change the physical
place of business, the adjustment must be made through the Business Licensing
Service. For a change of physical location, a new business license application
may need to be submitted to the Business Licensing Service, providing the
appropriate information and payment of fees due. The change will be referred to
the City for review and reapproval before a new license will be issued. For
Regulatory licenses issued under other chapters of this title, the requested
adjustment or change must be submitted directly to the City in the manner
provided by the City, along with any information and fees required for the change.
(5) Disapproval of License. When the issuance of a license is denied and any
action is instituted to compel its issuance, the applicant may not engage in the
activity for which the license was refused while the matter is being reviewed, and
until a license is issued.
Section 3. PMC Section 5.05.060 Application for license is hereby amended and
shall read as follows:
Each applicant for a license shall file an application through Business Licensing
Service or in the case of Regulatory Licenses the application must be submitted directly
to the City.(excluding rental license, solicitors, for hire drivers, special events, and
nonprofit organizations, including occupancy registrations, while shall be licensed
directly through the City). Upon payment of the license fee, and satisfactory compliance
with other applicable City ordinances and general laws, the license shall be issued.
Section 4. PMC Section 5.05.070, subsection (1) Responsibility of
applicant/licensee is hereby amended and shall read as follows:
(1) Information. Any applicant for a business license shall be responsible for the
Page 43 of 62
accuracy of the information given and statements made on the application form. In
the event information provided on the application form becomes incorrect or
inaccurate for any reason after issuance of a license, the licensee is personally
responsible to update and manage their business information changes with the
Business Licensing Service or the City in the case of Regulatory Licenses.
Section 5. PMC Section 5.05.100 Term of licenses is hereby amended and shall
read as follows:
Business licenses issued under this title are effective upon approval, and must
be renewed through the Washington State Business Licensing Service annually, on or
before the expiration date of the license, in order to continue doing business within the
City after the expiration date. Regulatory Licenses are effective for one calendar year
and must be renewed on or before the expiration date of the license. Depending on the
type of regulatory license, the license/renewal may vary between the calendar year of
January 1 to December 31, or annually based on the date of issuance. All licenses shall
be for a period of one year, unless otherwise provided herein.
Section 4. PMC Section 5.05.160 Fees is hereby amended and shall read as
follows:
An annual license fee as set in Chapter 3.35 PMC shall apply to all Regulatory
Licenses and all business categories (excluding rental license, solicitors, for hire drivers,
special events, and nonprofit organizations, including occupancy registration). In addition
to the annual license fee, for businesses there will be a fee for each employee:
(1) The number of employees is determined by adding the total number of hours
worked by all employees within the City limits of Pasco during the 12-month period
immediately preceding the year for which the license fee is payable, divided by
1,920, the annual per-person full-time work hour figure used by the Washington
State Department of Labor and Industries. The result must be rounded to the
nearest whole number.
(2) Employers without 12 months of employment history must estimate the
number of employee hours that will be worked during the coming 12-month period
and use the above calculation on that total.
(3) The annual fee amount may be prorated to accommodate synchronization of
a license expiration date with a date established by the Business Licensing
Service.
(4) Handling Fees. All business license applications and renewals filed through
the Business Licensing Service must include payment of the handling fees
authorized by RCW 19.02.075 and WAC 458-02-200.
(5) Late Payment Fee. A late payment fee, as set forth in Chapter 3.35 of this
Page 44 of 62
code, will be added to all annual Regulatory Licenses not procured before March
1st of each year. All business license applications must be renewed on or before
the expiration date. Any business license which is not renewed by the expiration
date may be assessed a late penalty payable through Business Licensing Service
(RCW 19.02.085) or the City (PMC 3.35.050), whichever is applicable. A license
that remains delinquent for 120 or more days after the expiration date will be
cancelled. Cancellation of a license requires reapplication for a license in order
to conduct business within the City.
Section 5. PMC Section 5.05.170, Subsection (1) entitled Monetary Threshold is
hereby amended and shall read as follows:
(1) Monetary Threshold. Any person or business whose annual value of products,
gross proceeds of sales, or gross income of the business in the City is equal to or
less than $2,000 and who does not maintain a place of business at a commercial
location within the City shall be exempt from the general business license
requirements in this chapter. The exemption does not apply to regulatory license
requirements or activities that require a specialized permit.
Section 6. PMC Section 5.85.050 is hereby amended and shall read as follows:
Each applicant for a license shall file an application with the City Clerk per
Chapter 5.05.020 and 5.05.030. The application shall be in writing and signed by the
applicant and shall give the applicant’s residence address and business address and
such other information as shall be required by the City Clerk. Upon payment of the
license fee, and satisfactory compliance with other applicable City ordinances and
general laws, the Clerk shall issue the license shall be issued.
Section 7. PMC Section 5.85.060 is hereby amended and shall read as follows:
The license shall be for a period of one year per Chapter 5.05.100.
Section 8. PMC Section 3.35.010 is hereby amended and shall read as follows:
2019 2020 Reference
Ambulance Service Rates
Resident Rate $650.00 $650.00 3.85.080
Nonresident Rate $1,100 $1,100 3.85.080
Monthly Utility Rate per ERU $15.58 $16.20 3.85.040
Ambulance Service Business License $150.00 $150.00 5.15.030
Page 45 of 62
Section 9. PMC Section 3.35.050 is hereby amended and shall read as follows:
Fee/Charge Reference
License base fee $80.00 5.05.160
Employee fee – per full time
equivalent
$20.00 5.05.160
Late penalty:
Rentals – dwelling units, per license
20% of amount
due
5.60.020
Rental dwellings – includes first unit
(No maximum fee)
$50.00 5.60.020
Rental dwelling - Each additional
unit
$10.00 5.60.020
Late penalty:
Rental license
Regulatory license (unless
otherwise specified)
20% of amount
due
$30.00
5.60.020
5.05.160
Special events:
Athletic, competitive or festival $25.00 5.35.130
Auction sales – for 3 days $75.00 5.35.130
Carnivals and circuses – first day
fee
$275.00 5.35.130
Each and every day after first $125.00 5.35.130
Concert $25.00 5.35.130
Dance hall – without liquor $75.00 5.35.130
Dance hall – with liquor $350.00 5.35.130
Demonstration $15.00 5.35.130
Outdoor music festival $25.00 5.35.130
Parade $15.00 5.35.130
Public dance $15.00 5.35.130
Page 46 of 62
Fee/Charge Reference
Temporary special sales event –
(maximum for event $500.00)
$40.00 for the
first vendor
5.35.130
Each additional vendor $20.00
Street and intersection closure
review fee
$50.00 5.35.180(1)(e)
Fireworks sales and wholesale
distribution
5.35.050
Fourth of July license term $115.00 5.96.030
- fire safety inspection ($75.00)
- license fee ($40.00)
New Year license term $115.00 5.96.030
- fire safety inspection ($75.00)
- license fee ($40.00)
Solicitors $150.00 5.65.060
Pawnshop $250.00 5.80.020
Ambulance Service Business
License
Amusement device distributor
$150.00
$500.00
5.15.030
5.40.060
Amusement device user – 1-6
machines
$50.00 5.40.060
Amusement device user – 6+
machines
$100.00 5.40.060
Adult entertainment facility: $700.00 5.20.110
Adult entertainer $150.00 5.20.110
Adult waitperson $150.00 5.20.110
Adult ent. bus. mgr. $150.00 5.20.110
Taxicab and transportation network
company licensing
Annual for-hire (taxicab/TNC) 5.110.040
Page 47 of 62
Fee/Charge Reference
business license application review
and business license fee in the
amount as follows:
Companies employing or
contracting with 10 or fewer drivers
$300.00
Companies employing or
contracting with 11 to 40 drivers
$700.00
Companies employing or
contracting with 41 or more drivers
$2,000.00
Annual for-hire driver business
license
$40.00 5.110.050
Photograph (as applicable) $5.00 5.110.060
Fingerprints (as applicable) $10.00 5.110.060
Criminal History Check (as
applicable)
$30.00 5.110.060
WSP/FBI Criminal History Check $34.75 5.110.060
Sidewalk sales No fee 5.95.010
Mobile home park
Inspection fee $20.00 19.15.040
Yard sale permit No fee 5.90.020
Yard sale sign violation $50.00 17.15.020
Section 10. This Ordinance shall take full force and effect five days after its
approval, passage and publication as required by law.
Page 48 of 62
PASSED by the City Council of the City of Pasco this _____ day of June 2019.
Matt Watkins, Mayor
ATTEST: APPROVED AS TO FORM:
____________ __________________
Angela Pashon, City Clerk Erik Ferguson, City Attorney
Page 49 of 62
AGENDA REPORT
FOR: City Council May 20, 2019
TO: Dave Zabell, City Manager Workshop Meeting: 5/28/19
FROM: Richa Sigdel, Finance Director
Finance
SUBJECT: Proposed Ambulance Fee Update
I. REFERENCE(S):
Proposed Ordinance
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Approximately $35,000 reduction to Ambulance Service revenue.
IV. HISTORY AND FACTS BRIEF:
A monthly Ambulance Utility Fee is charged to all customers within the City. The
utility fee, fee for transport and General Fund subsidy cover the cost to assure
ambulance services are properly staffed, equipped, supplied, housed and supported.
Before 2018, all customers within the City, Residential or Commercial, were charged
the same flat monthly fee; a point frequently brought to the City's attention by
residential customers comparing their bill to a large industrial facility or commercial
center. This inequity was also identified by staff and the City's Utility Rate Consultant,
FCS Group, during the Ambulance Utility Rate Study.
Council was briefed on the inequity of the former billing structure and subsequently
adopted a new billing structure for the following categories:
1. Residential Units (Single and Multi-family) - Each residential unit.
2. Commercial Business and Industries - Equivalent residential unit based on the
number of full-time equivalent employees.
3. Assisted Living and Nursing Homes - Number of occupants.
4. Hotels/Motels - Equivalent residential unit based on occupancy and number of
rooms.
Page 50 of 62
This new structure was implemented and staff has had sufficient history to evaluate and
report on its effects.
V. DISCUSSION:
While more equitable overall, the classification of system customers represented a
significant change to the billing structure of the utility. For that reason, staff has been
closely monitoring the program with a focus on continuous improvement. Considerable
outreach and internal/external analysis has occurred as part of the review process,
which resulted in the recommendations below:
• Describe the word "Employee" to further clarify the difference between an
employee and a contractor of a business (Beauticians/salons, Brokers/Realtors,
etc.).
• Clarify that billing is based on the full-time equivalent employees (FTE)
employed for any and all businesses located at one/each utility account/service
location.
• The City's old licensing structure did not factor FTE as a basis for licensing fee.
Business owners are getting familiar with our new structure. Correct FTE
information is not always input into the State Business License Services (BLS).
When possible, staff will update the FTE data in BLS with verification from
employers of the correct count. Wording will be added to Code to allow the
City to update employee counts with verification and documentation.
• Office buildings with one utility account for multiple businesses (some strip
malls, for instance) are responsible for paying the monthly ambulance service
fee for all FTE employees at that location. Further clarification expressing this
is needed in the current code.
• Remove categories for Assisted Living and Nursing Homes and Hotels/Motels
to standardize the billing process that is extensively manual. Treating these
facilities similar to residential units has proven difficult for multiple reasons:
Federal/State Assisted where Medicare/Medicaid relating regulations to
Living/Nursing Homes are concerned, operational inefficiencies, and a history
indicating a low use of ambulance services overall where Hotels/Motels are
concerned.
Implementation of the recommended changes will:
• Provide greater clarity for professional business operations.
• Improve self-reporting of FTE counts.
• Assure all business operators are treated fairly by their existence, rather than
whether the building they are housed in is served by one or multiple meters.
• Lower current fees to Hotel/Motel customers and increase slightly fees to
Assisted Care/Nursing facilities, which are currently among the highest users of
the service, yet pay a similar level as a single-family home.
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Overall, the recommended changes would reduce fund revenues by an estimated
$35,000 annually.
Staff recommends Council discuss the aforementioned recommendations and direct
staff to prepare an ordinance implementing these changes as proposed.
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ORDINANCE NO. _______
AN ORDINANCE of the City of Pasco, amending Pasco Municipal Code
Sections 3.85.010 (Definitions), and Section 3.85.040 (Monthly utility service fees
and rates).
WHEREAS, Ordinance No. 4369 was adopted and took effect on January 1, 2018, and
PMC 3.05.025, subsection B) was amended to require different classification of customers and
resulted in different rates, and
NOW, THEREFORE, The City Council has determined that certain amendments to the
municipal code regarding definitions and ambulance service fund classifications are needed, as
follows:
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS
FOLLOWS:
Section 1. PMC Section 3.85.010 Definitions is hereby amended and shall read as follows:
For the purpose of this chapter, these terms shall have the following meanings:
“Availability costs” means those costs attributable to the basic infrastructure needed to respond
to a single call for service within the utility’s response criteria, including costs for dispatch, labor,
training of personnel, equipment, patient care supplies, and maintenance of equipment.
“Commercial/Bbusiness” means any business (refer to definitions in 5.05.010) located and
operating within the City and paying a utility service fee under this chapter including
hotels/motels, and assisted living facilities.
“Demand costs” means those costs that are attributable to the burden placed upon the ambulance
service by individual calls for ambulance service. Demand calls shall include costs relating to
frequency of calls, distances from hospitals, and other factors identified in a costs-of-service study
conducted to assess burdens imposed on the ambulance utility.
“Employee” means any person who performs work, labor, or services for a business and is on the
business payroll. The term “employee” also includes self-employed person, sole proprietors,
owners, managers, partners, and all full-time, part-time, and temporary employee on the business
payroll.
“Equivalent residential unit” shall mean a unit of measure to express the number of people
dwelling in a single-family residence as provided by Office of Financial Management;
“Family residential” means each single-family dwelling within the City as defined by PMC
25.15.060.
“Full-time equivalent” shall mean the ratio of total number of paid hours during a year divided by
the number of working hours in that year (1,920 hours).
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“Industrial” means any industrial facility as permitted under Chapters 25.115 and 25.120 PMC
located and operating within the City and paying a utility service fee under this chapter.
“Multifamily residential” means each unit, space, apartment or lot available for rent or lease within
a multiple dwelling unit, including group, convalescent home, mobile or manufactured home parks
and condominiums. Multifamily residential units do not include hotels, motels, rooming houses,
or recreational vehicle parks, each of which is included within the “commercial/business” definition
above.
“Resident” means a person who utilizes a dwelling unit inside the City as a fixed abode, and is
not a guest, visitor, or other temporary inhabitant. A student who is regularly enrolled in an
educational institution outside the City, but who would normally and regularly be a City resident,
but for attendance at such educational institution, shall be deemed to reside within the City.
Types of Service. To distinguish between nonemergency and emergency services the following
definitions shall apply:
(a) “Emergency medical services” shall mean an apparent sudden need of medical attention
based on injury or other unforeseen acute physical or mental event, which poses an
immediate threat to life or physical well-being;
(b) “Transport” shall mean the movement of a patient by ambulance from the scene of an
emergency to the closest appropriate hospital;
(c) “Nontransport medical services” shall mean where a person receives medical services or
treatment by Pasco ambulance personnel and is not transported to a medical facility by
the ambulance;
(d) “Transfer” shall mean the movement of a patient by ambulance from or between one
hospital to another, to a medical facility, to a residence, to an airport for transfer to
another city, to another city or to any other designated location.
“Utility” means the City of Pasco ambulance service utility, including without limitation all
equipment, employees, agents, supplies, overhead and other associated costs incurred to deliver
all regulatory and ambulance services.
Section 2. PMC Section 3.85.040 Monthly utility service fees and rates, section (2)
Classifications, is hereby amended and shall read as follows:
(2) Classifications. The monthly service fee shall be determined, in part, based upon the
identified types of service provided to end users, including residential, accident scene response,
health care facilities, senior care, public facilities and other identified ambulance service users.
The monthly service fee shall be assessed on each of the following utility user classifications:
(a) Single-Family Residential. Each residential unit shall be assessed as one ERU per
residence in the amount indicated in the fee schedule in PMC 3.35.010.
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(b) Multifamily Residential. Each residential unit shall be assessed as one ERU per
residential unity unit in the amount indicated in the fee schedule in PMC 3.35.010.
(c) Commercial/Business/Industrial. Each business shall be assessed a monthly base utility
charge in the amount indicated in the schedule of fees and charges for each ERU in PMC
3.35.010. The number of ERU shall be calculated by dividing the total number of FTEs
employed by such business or industry by the number representing the average household
size of residential and housing units within the City (as published and updated by Office
of Financial Management of the State of Washington) computed on an annual basis. If
there are multiple businesses located at one utility account location, the FTEs employed
for all businesses will be used in the calculation. The City reserves the right to update the
business FTEs based on information received from the business and/or official data
collected by the State of Washington. Utility account owner will receive notification of any
changes made by the City.
(d) Assisted Living. Any assisted living facility shall be billed based on the number of
occupants residing at the facility as authorized by the governmental agency having
jurisdiction over such matters, with each occupant being an ERU. The City will solicit
occupancy information on a monthly basis. Occupants who are Medicaid eligible shall be
exempt from this calculation. Each assisted living facility shall be assessed a monthly base
utility charge in the amount indicated in the fee schedule in PMC 3.35.010.
(e) Hotels/Motels. Each hotel/motel shall be assessed a monthly base utility charge based
on the total number of rooms assuming a 1.5 occupancy per room average. The total
number of rooms per hotel/motel will be multiplied by 1.5, the average occupancy factor,
and then divided by the ERU. This product will then be multiplied by the occupancy rate
(as published and updated by Visit Tri-Cities) on an annual basis. Each hotel/motel shall
be assessed a monthly base utility charge in the amount indicated in the fee schedule in
PMC 3.35.010.
Section 3. This Ordinance shall take full force and effect five days after its
approval, passage and publication as required by law.
PASSED by the City Council of the City of Pasco this ____ day of June 2019.
Matt Watkins, Mayor
ATTEST: APPROVED AS TO FORM:
____________ __________________
Angela Pashon, City Clerk Erik Ferguson, City Attorney
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AGENDA REPORT
FOR: City Council May 14, 2019
TO: Dave Zabell, City Manager Workshop Meeting: 5/28/19
FROM: Larry Dickerson, Interim Director
Police Department
SUBJECT: SRO 2019 Summer School Interagency Agreement
I. REFERENCE(S):
Proposed Interagency Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Pasco School District Funds - $11,173.00
IV. HISTORY AND FACTS BRIEF:
School Resource Officers (SRO) are full-time uniformed police officers primarily
dedicated to providing law enforcement resource services to assigned schools and
surrounding neighborhoods. The Pasco School District has requested an extension of
the SRO services for the 2019 Summer School at Chiawana and Pasco High School.
Normally, SRO services are not provided during summer months; however, as a
measure to enhance service to the schools, the School District has requested SRO
services for up to eight hours each day of summer school. Chiawana has 12 summer
school days from June 18 to July 3 while Pasco High School has 11 Summer School
days from June 19 to July 3.
V. DISCUSSION:
The proposed Interagency Agreement would be effective June 18 through July 3, 2019
and provide two School Resource Officers for the 2019 Summer School. The School
District will reimburse the City for the salary and fringe benefits costs for two officers
during 12 days of summer school. Council’s approval of the Agreement is required.
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INTERAGENCY AGREEMENT
Between
Pasco School District No. 1
And
City of Pasco, Washington
This agreement, pursuant to Chapter 39.34 RCW is made and entered into by and between the
Pasco School District No. 1, hereafter referred to as the “District” and the City of Pasco, a
municipal corporation of the State of Washington, hereafter referred to as the “City.”
No special budget or funds are anticipated, nor shall be created. It is not intended that a separate
legal entity be established to conduct this cooperative undertaking, nor is the acquiring, holding,
or disposing of real or personal property other than as specifically provided within the terms of
this Agreement, anticipated. The Chief of Police of the City of Pasco, Washington, shall be
designated as the Administrator of this Interlocal Agreement.
This Agreement shall be filed with the Franklin County Auditor, or alternatively listed by subject
on either parties’ website or other electronically retrievable public source.
It is the purpose of this agreement to:
1. Enhance the safety and security of students, teachers, staff, and visitors and provide
patrol of the various campuses of the District located within the City of Pasco,
Washington.
2. Provide for the presence of armed and uniformed City Police Officers both inside and
outside the school buildings on selected campuses of the District during certain school
hours in support of such safety and security and the maintenance of a secure and peaceful
learning atmosphere.
3. Provide for prevention, intervention, and prompt effective enforcement by the City’s
Police Department in situations involving, but not limited to:
a. Maintenance of order
b. Use, possession, or sale of illegal drugs and alcohol on school premises
c. Crimes against persons
d. Crimes against property
e. Any other situations or activities which require the intervention of law enforcement
officers; and
4. Provide for participation by police officers in the educational activities and role modeling
to foster and enhance knowledge of and respect for law enforcement and law
enforcement officers by students and the community.
5. Provide positive and supportive interface between law enforcement representatives and
the District’s substance abuse and harassment prevention efforts including, but not
Interagency Agreement between Pasco School District No. 1 and the City of Pasco.
Page 1 of 6
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limited to Natural Helpers, Student Assistance Teams, Anti-Harassment and Bullying
Project and other intervention and prevention efforts by the District.
It is therefore mutually agreed that:
1. Statement of Work. The City shall furnish the necessary personnel and services and
otherwise do all things necessary for and incidental to the performance of the work stated
herein. The City shall:
a. Assign two full-time uniformed police officers for eight consecutive hours each day
from 07:30 AM to 3:30 PM to provide School Resource Officer services at specific
schools in accordance with the following schedule:
i. Chiawana High School: June 18 – July 3 , 2019 Monday – Friday
ii. Pasco High School: June 19 – July 3, 2019 Monday – Friday
One SRO will be assigned to Chiawana High School beginning June 18. The second
SRO will be assigned to Pasco High School beginning June 19. Both officers are
responsible for responding to incidents at the other schools as needed during the
overlap period. Each SRO shall make certain that the Administration at their assigned
school is notified when they are required to respond to another school. Generally, the
quickest way to get an SRO to respond to an alternate school will be to call the
Franklin County Emergency Dispatch Center and request an SRO be sent to the
incident at a specific school. Except in incidents where a particular SRO may have
prior knowledge or involvement in a specific case or other extenuating factors, the
on-duty police supervisor will designate which SRO responds.
Office space shall be provided as available at each school for the use of the School
Resource Officer. Such office shall be equipped with one office desk and chair, and
one locking cabinet. The City shall provide a lockable cabinet capable of securing
police department equipment when not in use by the officer.
b. Cooperate with the District to provide training and education to each assigned officer
to insure effective communication and interrelation with the school community and
its students;
c. Cooperate with the District to monitor and evaluate the effectiveness of the assigned
officers and the program;
d. Meet as needed during the academic year with the District’s representative (as
designated by the District) to evaluate the effectiveness of the program;
e. Cooperate with the District’s representative to investigate and report on any
complaints regarding the conduct of an assigned officer, share fully, as permitted by
law, with the District’s representative all results of such investigations for the purpose
of responding to each complaint and cooperate to resolve each complaint. Provided,
that it shall be the responsibility of the District to respond to any complaint the
Interagency Agreement between Pasco School District No. 1 and the City of Pasco.
Page 2 of 6
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District received from a student, parent or patron of the District and communicate the
results of any investigation to such person or persons.
2. Terms and Conditions. All rights and obligations of the parties to this agreement shall
be subject to and governed by the terms and conditions contained in the text of this
agreement.
3. Period of Performance. Subject to its other provisions, the period of performance of
this agreement shall commence on June 18, 2019 and be completed on July 3, 2019
unless terminated sooner as provided herein.
The principal shall be responsible for notifying the Chief of the City’s Police Department
of the school calendar, schedule of events and activities, and any changes in the same.
The principal shall determine the specific hours when an officer shall be present within
the limits set forth in Section 1.a. of the Agreement.
4. Payment. The District shall reimburse the City for its expenses in employing two
officers for 192 hours as follows:
a. For June 18, 2019 through July 3, 2019, an estimated total of eleven thousand one
hundred seventy three dollars ($11,173.00).
b. Actual amount will be determined by the parties based upon any negotiated wage
increase between the City and the police officer’s collective bargaining unit. The
current wage rate with benefits is $58.19 per hour.
5. Billing Procedure. The City shall submit a monthly invoice or billing statement to the
District. Payment shall be made to the City according to the regular procedures of the
District.
6. Funding. If for any reason the District exhausts its budgeted funds for payment to the
City for its services described herein or funds from any expected funding source become
unavailable, the District shall notify the City and the obligations of the City shall
immediately cease and this agreement terminate, unless the district otherwise assumes the
obligations for the payment of services rendered by the Police Department.
7. Non-discrimination. In the performance of this agreement, the District and the City
shall comply with the provisions of Title VI of the Civil Rights Act of 1964 (42 USC
200d), Section 504 of the Rehabilitation Act of 1973 (29 USC 7904) and Chapter 49.60
RCW, as now and hereafter amended. Both shall not, except as they may be specifically
allowed by laws to do so, discriminate on the grounds of race, color, national origin, sex,
religion, marital status, age, creed, Vietnam-Era and Disabled Veterans status, or the
presence of any sensor, mental, or physical handicap.
In the event of non-compliance by either party or refusal to comply with the above
provisions this agreement may be rescinded, canceled, or terminated in whole or in part.
Interagency Agreement between Pasco School District No. 1 and the City of Pasco.
Page 3 of 6
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The non-complying party shall, however, be given a reasonable time in which to cure this
non-compliance. Any dispute may be resolved in accordance with the “Disputes”
procedure set forth herein.
8. Records Maintenance. The City shall maintain books, records, documents and other
evidence that sufficiently and effectively reflect all direct and indirect cost expended in
the performance of the services described herein. These records shall be subject to
inspection, review or audit by the personnel of both parties, other personnel authorized by
either party, the Office of the State Auditor and federal officers, if any, so authorized by
law. The City and District shall retain all books, records, documents, and other materials
relevant to this agreement for five (5) years after expiration. The office of the State
Auditor, federal auditors, and any persons authorized by the parties shall have full access
and the right to examine any of these materials during this five-year period.
9. Responsibilities and Authority of School Administrator. The principal or other
administrator designated by the District is responsible for the supervision and daily
operations of the school shall, subject to the lawful exercise of the officer’s law
enforcement responsibilities, schedule, assign and direct the officer’s duties under this
agreement.
The principal is responsible for the investigation of non-criminal incidents that occur at
or are related to the school. If the principal finds that he or she or any individual is in
physical danger, the principal may request the law enforcement officer to assist him or
her.
In the case of a search of student property for the violation of District rules or other
administrative reasons, the school principal or designated administrator or District
employee will conduct the search. Once the principal has reason to believe that a crime
has been or may be committed, the principal or other designated administrator shall
request the law enforcement officer to assume responsibility.
The building administrator shall have the responsibility to contact and report to parents
and patrons regarding activities and findings of the law enforcement officer, where
appropriate.
10. Indemnification. Each party shall defend, protect and hold harmless the other party
from and against all claims, suits and/or actions arising from any negligent or intentional
act or omission of that party’s employees or agents while performing under this
agreement.
11. Agreement Alterations and Amendments. The District and the City may mutually
amend this agreement. Such amendments shall not be binding unless they are in writing
and signed by the personnel authorized to bind the District and the City.
12. Termination. Except as otherwise provided in this agreement, either party may
terminate this agreement by providing sixty (60) days advance written notification to the
Interagency Agreement between Pasco School District No. 1 and the City of Pasco.
Page 4 of 6
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other party of their intent to terminate the agreement. If this agreement is so terminated,
the terminating party shall be liable only for performance, in accordance with the terms
of this agreement for performance rendered prior to the effective date of termination.
13. Savings. Should any portion of this agreement be declared illegal, the balance of the
agreement shall remain in full force and effect to carry out the purposes of this
agreement.
14. Disputes. In the event that a dispute arises under this agreement, it shall be resolved in
the following manner: The Director of Educational Services of the District shall appoint a
member to the Dispute Board. The Pasco Chief of Police shall appoint a member to the
Dispute Board. The Director of Educational Services and the Pasco Chief of Police shall
jointly appoint a third member to the Dispute Board. That person shall act as
chairperson, convene the Dispute Board and cause a determination of the dispute, arrived
at by a majority of the Board, to be rendered in a timely manner. The determination of
the Dispute Board shall be final and binding on the District and the City.
15. Notices. Any notices required herein or related hereto shall be delivered in writing to the
District at:
Pasco School District No.1
Attn.: Executive Director, Operations
1215 West Lewis Street
Pasco, WA 99301
And to the City at: Pasco Police Department
Attn: Chief of Police
525 North 3rd Avenue
Pasco, WA 99301
16. All Writings Contained Herein. This agreement contains all the terms and conditions
agreed to by the parties. No understandings, oral or otherwise, regarding the subject
matter of this agreement shall be deemed to exist or to bind any of the parties to this
agreement.
Interagency Agreement between Pasco School District No. 1 and the City of Pasco.
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In Witness whereof, the parties have executed this agreement effective this _____ day of
2019.
City of Pasco: Pasco School District No. 1:
Matt Watkins, Mayor Michelle Whitney, Superintendent
Attest:
Daniela Erickson, City Clerk Sarah Thornton, School District Counsel
Approved as to Form:
City Attorney
Interagency Agreement between Pasco School District No. 1 and the City of Pasco.
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