HomeMy WebLinkAbout2019.08.19 Council Meeting PacketRegular Meeting
AGENDA
PASCO CITY COUNCIL
7:00 p.m.
August 19, 2019
Page
1. CALL TO ORDER:
2. ROLL CALL:
(a) Pledge of Allegiance
3. CONSENT AGENDA: All items listed under the Consent Agenda are considered
to be routine by the City Council and will be enacted by roll call vote as one motion
(in the form listed below). There will be no separate discussion of these items. If
further discussion is desired by Council members or the public, the item may be
removed from the Consent Agenda to the Regular Agenda and considered
separately.
5 - 8 (a) Approval of Minutes
To approve the minutes of the Pasco City Council Meeting dated August 5,
2019.
9 - 14 (b) 2020 Community Development Block Grant (CDBG) Annual Work
Plan and Allocations (MF# BGAP 2019-003)
To approve Resolution No. 3911, approving the Program Year 2020
Community Development Block Grant Allocations and Annual Work Plan.
15 - 17 (c) Bills and Communications
To approve claims in the total amount of $3,585,913.52 ($1,843,772.96 in
Check Nos. 230654-230938; $891,448.98 in Electronic Transfer Nos.
825643-825645, 825653-825656, 825717, 825719-825723; $36,904.48 in
Check Nos. 52800-52849; $807,671.78 in Electronic Transfer Nos.
30137100-30137666; $6,115.32 in Electronic Transfer Nos. 613-617).
To approve bad debt write-off for Utility Billing, Ambulance, Cemetery,
General Accounts, Miscellaneous Accounts, and Municipal Court (non-
criminal, criminal, and parking) accounts receivable in the total amount of
$330,467.18 and, of that amount, authorize $142,132.48 to be turned over
for collection.
18 - 22 (d) 2020 HOME Annual Work Plan and Allocation (MF# BGAP 2019-004)
To approve Resolution No. 3912, approving Federal 2020 HOME Annual
Page 1 of 85
Regular Meeting August 19, 2019
Work Plan and Allocation.
23 - 27 (e) 2020 Neighborhood Stabilization Program (NSP) Annual Work Plan
Allocation (MF# BGAP 2019-005)
To approve Resolution No. 3913, approving the 2020 NSP Program Year
Annual Work Plan and Allocation.
28 - 31 (f) Agreement with Franklin County Historical Society
To approve Agreement for Services with Franklin County Historical Society
and, further, authorize the City Manager to execute the agreement.
(RC) MOTION: I move to approve the Consent Agenda as read.
4. PROCLAMATIONS AND ACKNOWLEDGEMENTS:
5. VISITORS - OTHER THAN AGENDA ITEMS: This item is provided to allow
citizens the opportunity to bring items to the attention of the City Council or to
express an opinion on an issue. Its purpose is not to provide a venue for debate or
for the posing of questions with the expectation of an immediate response. Some
questions require consideration by Council over time and after a deliberative
process with input from a number of different sources; some questions are best
directed to staff members who have access to specific information. Citizen
comments will normally be limited to three minutes each by the Mayor. Those with
lengthy messages are invited to summarize their comments and/or submit written
information for consideration by the Council outside of formal meetings.
6. REPORTS FROM COMMITTEES AND/OR OFFICERS:
(a) Verbal Reports from Councilmembers
7. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND
RESOLUTIONS RELATING THERETO:
8. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS:
32 - 63 (a) DNR Aquatic Lands Lease - Chiawana Park Western Dock
MOTION: I move to approve the Aquatic Lands Lease No. 20-A81594 with
the Washington State Department of Natural Resources for public use and
access recreational dock on the Columbia River, and further authorize the
City Manager to execute the lease.
64 - 70 (b) PACE Engineering Contract Amendment - Columbia East Force Main
& Lift Station Project
Page 2 of 85
Regular Meeting August 19, 2019
MOTION: I move to approve Amendment No. 3 for the Professional
Services Agreement with PACE Engineering for the Columbia East Force
Main and Lift Station project, and further, authorize the City Manager to
execute the amendment.
71 - 85 (c) PWRF Sediment Pond Cleanout - Bio Terra Environment Engineering
Contract
MOTION: I move to approve the Professional Services Agreement for the
Process Water Reuse Facility Holding Pond Sediment Removal with
BioTerra, and further, authorize the City Manager to execute the agreement.
9. UNFINISHED BUSINESS:
10. NEW BUSINESS:
11. MISCELLANEOUS DISCUSSION:
12. EXECUTIVE SESSION:
13. ADJOURNMENT.
(RC) Roll Call Vote Required
* Item not previously discussed
Q Quasi-Judicial Matter
MF# “Master File #....”
REMINDERS:
• Monday, August 19, 6:00-7:00 p.m.; LEOFF Disability Board - Conference Room 1
(Mayor Watkins, Rep.; Councilmember Maloney, Alt.)
• Tuesday, August 20, 4:00-5:00 p.m.; Pasco Public Facilities District Board - Council
Chambers (Councilmembers Maloney & Milne, Council Liaisons)
• Wednesday, August 21, 5:30-6:00 p.m.; Benton, Franklin & Walla Walla Counties
Good Roads & Transportation Association - Clover Island Inn (Councilmember
Alvarado, Rep.; Councilmember Martinez, Alt.)
• Thursday, August 22, 4:00-5:00 p.m.; TRIDEC Board - 7130 W Grandridge Blvd
(Councilmember Milne, Rep.; Councilmember Maloney, Alt.)
This meeting is broadcast live on PSC-TV Channel 191 on Charter Cable and streamed
at www.pasco-wa.gov/psctvlive.
Page 3 of 85
Regular Meeting August 19, 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 4 of 85
AGENDA REPORT
FOR: City Council August 13, 2019
TO: Dave Zabell, City Manager Regular Meeting: 8/19/19
FROM: Angela Pashon, City Clerk
Administrative & Community Services
SUBJECT: Approval of Minutes
I. REFERENCE(S):
Minutes 08.05.19
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve the minutes of the Pasco City Council Meeting dated August 5, 2019.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 5 of 85
REGULAR MEETING
MINUTES
PASCO CITY COUNCIL AUGUST 5, 2019
CALL TO ORDER:
The meeting was called to order at 7:00 p.m. by Matt Watkins, Mayor.
ROLL CALL:
Councilmembers present: Blanche Barajas, Craig Maloney, Saul Martinez, David
Milne, and Matt Watkins.
Staff present: Dave Zabell, City Manager; Eric Ferguson, City Attorney; Zach Ratkai,
Administrative & Community Services Director; Rick White, Community & Economic
Development Director; Steve Worley, Public Works Director; Richa Sigdel, Finance
Director; Ken Roske, Deputy Police Chief and Ed Dunbar, Deputy Fire Chief.
The meeting was opened with the Pledge of Allegiance.
CONSENT AGENDA:
Approval of Minutes
To approve the minutes of the Pasco City Council Meeting dated July 15, 2019
and Special City Council Meeting dated July 31, 2019.
Bills and Communications
To approve claims in the total amount of $9,073,035.96 ($5,140,148.47 in
Check Nos.230008-230653; $2,263,946.56 in Electronic Transfer Nos. 825182-
825285, 825301-825351, 825354-825515, 825526-825537, 825640; $81,364.09
in Check Nos. 52678-52799; $1,578,980.52 in Electronic Transfer Nos.
30135990-30137099; $8,596.32 in Electronic Transfer Nos. 603-612).
To approve bad debt write-off for Utility Billing, Ambulance, Cemetery,
General Accounts, Miscellaneous Accounts, and Municipal Court (non-
criminal, criminal, and parking) accounts receivable in the total amount of
$221,750.77 and, of that amount, authorize $112,128.92 to be turned over for
collection.
Service Agreement with TRIDEC
To approve the Industrial Recruitment Participant Agreement between the City
of Pasco and TRIDEC; and further, authorize the City Manager to execute the
Agreement.
(RC) MOTION: Mr. Maloney moved to approve the Consent Agenda as
read. Mr. Martinez seconded. Motion carried by unanimous Roll Call vote.
PROCLAMATIONS AND ACKNOWLEDGEMENTS:
Yard and Business of the Month Awards
Mayor Watkins to presented Certificates of Appreciation for July 2019 "Yard of
the Month" and "Business Appearance of the Month" to:
• Erendira Diaz, 828 N. Owen Avenue
Page 1 of 3 Page 6 of 85
REGULAR MEETING
MINUTES
PASCO CITY COUNCIL AUGUST 5, 2019
• Judy & Joe Church, 1539 W. Jay Street
• Bob & Jeanette Smith, 4304 Sedona Drive
• Robin Jackson, 8816 Landon Court
• Pizza Hut, 1921 W. Court Street
National Health Center Week Proclamation
Council to presented Proclamation to Jim Davis, Chief Executive Officer of
Tri-Cities Community Health.
VISITORS - OTHER THAN AGENDA ITEMS:
• Teresa Richardson from Habitat for Humanity stated 65 homes have been built
in Pasco, discussed permit fees, and invited all to a celebration on November 8.
REPORTS FROM COMMITTEES AND/OR OFFICERS:
Verbal Reports from Councilmembers
• Mr. Martinez attended the Hanford Communities Meeting, Police Chief's Forum,
and Colville Tribal event.
• Ms. Barajas attended the Colville Tribal event, Police Chief's Forum, and Habitat
for Humanity's dedication event.
• Mr. Maloney attended the Tri-Cities Legislative Council Appreciation event.
General Fund Monthly Report - June 2019
HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO:
Vacation: A Portion of East Duluth Street (MF# VAC2019-004)
Mayor Watkins declared the Public Hearing open to consider vacation. Following three
calls for comments, Mayor Watkins declared the Public Hearing closed.
MOTION: Mr. Maloney moved to approve Ordinance No. 4449, vacating a
portion of East Duluth Street, and further, authorize publication by summary
only. Mr. Martinez seconded. Motion carried unanimously.
ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS:
Kinnaman Rezone: C-1 to R-1 (MF# Z2019-006)
MOTION: Mr. Maloney moved to adopt Ordinance No. 4450, rezoning the
property addressed at 527 West Bonneville Street from C-1 to R-1 and further,
authorize publication by summary only. Mr. Milne seconded. Motion carried
unanimously.
Lawrence Stone Rezone: R-2 to I-1 (MF# Z 2019-005)
MOTION: Mr. Maloney moved to adopt Ordinance No. 4451, rezoning two
parcels Located at 28 West "A" Street from R-2 (Medium Density Residential)
Page 2 of 3 Page 7 of 85
REGULAR MEETING
MINUTES
PASCO CITY COUNCIL AUGUST 5, 2019
to C-3 (General Business), and further, authorize publication by summary only.
Ms. Barajas seconded. Motion carried unanimously.
PSA Amendment Process Water Treatment Facility - PACE Engineering
MOTION: Mr. Maloney moved to approve Professional Services Agreement
Amendment No. 5 with PACE Engineering and, further, authorize the City
Manager to execute the agreement. Mr. Martinez seconded. Motion carried
unanimously.
MISCELLANEOUS DISCUSSION:
• Mr. Zabell stated the City Council received annual audit reports, the City
received no findings.
• Mr. Zabell announced August 6 was National Night Out and several
Councilmembers would be doing ride-alongs with Pasco Police.
• Mr. Zabell announced Memorial Pool was hosting a Swim Night on August 6.
ADJOURNMENT.
There being no further business, the meeting was adjourned at 7:37 PM.
PASSED AND APPROVED this 19th day of August 2019
APPROVED: ATTEST:
Matt Watkins, Mayor Angela Pashon, Interim City Clerk
Page 3 of 3 Page 8 of 85
AGENDA REPORT
FOR: City Council August 12, 2019
TO: Dave Zabell, City Manager
Rick White, Director
Community & Economic Development
Regular Meeting: 8/19/19
FROM: Angie Pitman, Urban Development
Coordinator
Community & Economic Development
SUBJECT: 2020 Community Development Block Grant (CDBG) Annual Work Plan and
Allocations (MF# BGAP 2019-003)
I. REFERENCE(S):
Proposed Resolution
Planning Commission Minutes Dated: 6/20/19 and 7/18/19
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. _____, approving the Program Year
2020 Community Development Block Grant Allocations and Annual Work Plan.
III. FISCAL IMPACT:
CDBG Entitlement for 2020 is estimated at $1,129,071, which includes program
income and prior year reallocations.
IV. HISTORY AND FACTS BRIEF:
The City of Pasco receives an annual entitlement grant from United States Department
of Housing and Urban Development for the Community Development Block Grant
(CDBG) program authorized by Title I of the Housing and Community Redevelopment
Act.
The City’s grant allocation process is guided by Resolution 1969, approved in 1991,
which designates the Planning Commission as the Block Grant advisory committee and
addresses several community needs for which the CDBG program will provide
funding. The resolution places the highest priority on bricks and mortar physical
improvements and specifically excludes social service programs carried on by non-
profit organizations and governmental agencies designed to provide health, welfare,
Page 9 of 85
and educational activities for individual persons. Recreation programs operated by the
City do not fall under this definition of social service programs.
A "Request for Proposals" for 2020 CDBG funds was published in the Tri -City Herald
and Tu Decides newspapers in May. Thirteen (13) requests for grant funding were
considered totaling $2,011,605.
The Planning Commission held public hearings and discussion at the June 20, and July
18, 2019 meetings. The public hearings solicited public comment on any application
for funding, or reallocation for the City of Pasco 2020 Community Development Block
Grant (CDBG) Program. At the public hearings, thirteen (13) presentations were made
relating to proposed activities.
This item was discussed by Council at the August 12, 2019 workshop meeting.
V. DISCUSSION:
Planning 2019 18, the at July for recommendations presented Staff funding
Commission Meeting. The Planning Commission recommended approval of funding
recommendations as presented.
After a HUD financial monitoring visit in late July and after the Planning commission
made their funding recommendation to Council, HUD recommended all program
income generated and retained from the Pasco Specialty Kitchen Technical Assistance
activity be included in the Annual Action Plan. Therefore, the recommended activity
allocation the Specialty Pasco from program CDBG estimated includes income
Kitchen activity. The increase from $100,000 to $167,105 is an administrative
amendment and is reflected in the proposed Resolution.
There is always some question regarding funding levels approved by Congress. Actual
available funding for these FY 2020 activities will remain in question until the early
part of 2020 when the award is made. Staff recommends all projects not recommended
for whole or partial funding be put in the 2020 annual action plan as contingency
projects should funds become available. An amendment to the Annual Action Plan
would be necessary to allocate unobligated funds to any project not in the plan. If
funding activity estimated, higher lower or are levels than be will funding
proportionately adjusted prior to submission of the plan.
Page 10 of 85
RESOLUTION NO. _________
A RESOLUTION approving the Program Year 2020 Community Development Block Grant
Allocations and Annual Work Plan.
WHEREAS, staff has prepared the Program Year 2020 Annual Work Plan for activities totaling
$1,129,071 from estimated entitlement, program income and prior year reallocation funds; AND
Now, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
Section 1. That the Pasco City Council hereby approves the Annual Work Plan as follows:
Activity Funding
CDBG Program Administration $ 140,000.00
Civic Center -Youth Recreation Specialist $ 20,000.00
Martin Luther King Community Center Recreation Specialist $ 20,000.00
Senior Citizen's Center Recreation Specialist $ 20,000.00
Martin Luther King Recreation Programs $ 20,000.00
Theraputic Recreation Program Scholarship $ 5,000.00
Recreation Scholarship Program $ 4,000.00
Pasco Specialty Kitchen $ 167,105.00
Code Enforcement Officer $ 70,000.00
**Contingency: CHIP Owner Occupied Minor Rehabilitation $ 102,882.00
**Contingency: CHIP Rental Minor Rehabilitation
**Contingency: PSK Facility Improvements-Hood Expansion Project
**Contingency: Downtown Physical Improvements $360,084.00
DEBT REPAYMENT - SECTION 108 LOAN $200,000.00
TOTAL $ 1,129,071.00
Section 2. That the Pasco City Council hereby approves unfunded and partially funded
projects above as contingencies in the annual action plan; and
Section 3. If entitlement funds are less than estimated, program administration and public
services will be reduced to do not exceed limits, City projects may be voluntarily reduced, and all other
projects will be proportionately reduced; and
Section 3. That the City Manager or his delegate is authorized to sign all agreements in
accordance with the 5-Year Consolidated Plan and Annual Action Plan Supplements previously
approved by Council.
PASSED by the City Council of the City of Pasco this _____day of _______________, 2019.
_____________________________
Matt Watkins
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Angela Pashon Kerr Law Group
Interim City Clerk City Attorney Page 11 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JUNE 20, 2019
7:00 PM
PUBLIC HEARINGS:
B. Block Grant 2020 Community Development Block Grant (CDBG)
Allocations (MF# BGAP 2019-003)
Chairperson Myhrum read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the 2020 Community Development
Block Grant (CDBG) Allocations. The purpose of CDBG is to preserve and develop viable urban
communities; expand economic opportunities, provide decent affordable housing and create/sustain a
suitable living environment. The program requirements are: HUD approved 5-year Consolidated Plan
(goals and strategies for spending), Annual Action Plan Supplement (carries out annual goals and
objectives each program year), Consolidated Annual Plan Evaluation Report (evaluates the Annual Action
Plan performance) and Citizen Participation. The criteria for selecting programs for funding include:
Meets a national objective to benefit low-moderate income persons in Pasco, Meets eligibility criteria
defined in 24CFR570, Meets Consolidated Plan goals and objectives, Meets local priority needs
(Resolution 1969), Qualified applicant demonstrates capacity and Project scope and budge exhibits
feasibility.
Resolution 1969, designates the Planning Commission as advisory board. It considers projects that
address: housing, parks, community sponsored recreation, infrastructure, community facilities, economic
development, removing substandard/hazardous conditions, planning and other physical improvements
as priority. It allows capital improvement of facilities that house social agencies. It states that social
services such as health, education and welfare are not allowable.
The City of Pasco anticipates an entitlement of $700,000 for the program year of 2020, program income
(from NSP Program Conversion) of $80,468 and prior year reallocations of $260,084 for the total of
$1,040,552 available funds for use in 2020. Staff has received 14 proposals that total $1,864,075, meaning
there is a deficit for funds requested and what will be available of $823,523. The Planning Commission
will need to recommend to City Council which projects to fund.
Mr. White briefly addressed the program proposals that were included in the staff report to the Planning
Commission. The proposals were for: City Program Administration, three City employment opportunities
for youth and senior center recreation, YMCA Operations at the MLK Community Center, Parks &
Recreation Scholarship Fund, Technical and Arc Therapeutic Recreation Scholarship Fund, Downtown
Specialty Kitchen Incubator Kitchen, CHIP – Housing Rehabilitation Program, The Heritage Demonstration
Garden and Parking (Franklin County Historical Museum), Pasco Specialty Kitchen Facility Rehabilitation,
Code Enforcement Officer, Business District Improvements and the Section 108 Repayment (Revitalize
Peanuts Park and street improvements).
Page 12 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JUNE 20, 2019
7:00 PM
There were questions and discussion between Commissioners and Staff regarding the content in the staff
report, the proposals and requested allocations.
The public hearing was opened for public testimony.
Steve Howland, Richland, spoke in support of his application for the MLK Community Center Recreation
Programs in Pasco.
Julie Funfar, Pasco, spoke in support of her application for the Franklin County Historical Museum Heritage
Demonstration Garden and Parking.
Donna Tracy, Richland, spoke in support of her application for the Arc of Tri-Cities Therapeutic Recreation
Program Scholarship.
There was no further discussion and the public hearing was left open for the next Planning Commission
meeting in July.
Page 13 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JULY 18, 2019
7:00 PM
PUBLIC HEARINGS:
C. Block Grant 2020 Community Development Block Grant (CDBG)
Allocations (MF# BGAP 2019-003)
Chairperson Roach read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the 2020 Community Development
Block Grant (CDBG) Allocations. This is the second public hearing for this item. The first hearing public
testimony and comments were received. Included in the staff report were staff recommendations for the
allocations, including one new project for affordable/emergency housing assistance.
There was no further public testimony or comments.
Commissioner Cochran moved, seconded by Commissioner A. Campos, the Planning Commission close
the public hearing and recommend the City Council approve the use of funds for the 2020 Community
Development Block Grant Program as set forth in the “2020 Fund Summary” as recommended by Staff.
The motion passed unanimously.
Page 14 of 85
AGENDA REPORT
FOR: City Council August 15, 2019
TO: Dave Zabell, City Manager Regular Meeting: 8/19/19
FROM: Richa Sigdel, Director
Finance
SUBJECT: Bills and Communications
I. REFERENCE(S):
Accounts Payable 08.19.19
Bad Debt Write-off/Collection
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve claims in the total amount of $3,585,913.52 ($1,843,772.96 in Check Nos.
230654-230938; $891,448.98 in Electronic Transfer Nos. 825643-825645, 825653-
825656, 825717 825719, -52800Nos. Check 825723; $36,904.48 in -52849;
$807,671.78 in Electronic Transfer Nos. 30137100-30137666; $6,115.32 in Electronic
Transfer Nos. 613-617).
To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General
Accounts, Miscellaneous Accounts, and Municipal Court (non-criminal, criminal, and
parking) accounts receivable in the total amount of $330,467.18 and, of that amount,
authorize $142,132.48 to be turned over for collection.
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 15 of 85
REPORTING PERIOD:
August 19, 2019
Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined
Check Numbers 230654-230938 52800-52849
Total Check Amount $1,843,772.96 $36,904.48 Total Checks 1,880,677.44$
Electronic Transfer Numbers 825643-825645 30137100-30137666 613-617
825653-825656
825717
825719-825723
Total EFT Amount $891,448.98 $807,671.78 $6,115.32 $0.00 Total EFTs 1,705,236.08$
Grand Total 3,585,913.52$
Councilmember
402,536.53
13,900.17
0.00
0.00
9.49
0.00
0.00
10,678.42
9,013.93
832.58
0.00
68,131.16
1,684.88
2,919.57
2,021.72
27,133.71
822.35
3,403.99
0.00
0.00
79,688.27
3,377.66
HOTEL/MOTEL EXCISE TAX 0.00
0.00
446,389.96
759,133.26
87,880.70
8,902.59
0.00
0.00
447,409.95
0.00
5,051.88
1,204,990.75
GRAND TOTAL ALL FUNDS:3,585,913.52$
EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL
EQUIPMENT RENTAL - REPLACEMENT BUSINESS
MEDICAL/DENTAL INSURANCE
OLD FIRE OPEB
FLEX
PAYROLL CLEARING
STADIUM/CONVENTION CENTER
LID
GENERAL CAP PROJECT CONSTRUCTION
UTILITY, WATER/SEWER
EQUIPMENT RENTAL - OPERATING GOVERNMENTAL
EQUIPMENT RENTAL - OPERATING BUSINESS
SPECIAL ASSESSMENT LODGING
LITTER ABATEMENT
REVOLVING ABATEMENT
TRAC DEVELOPMENT & OPERATING
PARKS
ECONOMIC DEVELOPMENT
ATHLETIC PROGRAMS
GOLF COURSE
SENIOR CENTER OPERATING
MULTI-MODAL FACILITY
RIVERSHORE TRAIL & MARINA MAIN
C.D. BLOCK GRANT
HOME CONSORTIUM GRANT
NSP GRANT
MARTIN LUTHER KING COMMUNITY CENTER
AMBULANCE SERVICE
CEMETERY
Councilmember
SUMMARY OF CLAIMS BY FUND:
GENERAL FUND
STREET
ARTERIAL STREET
STREET OVERLAY
City of Pasco, Franklin County, Washington
We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as
described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim.
Dave Zabell, City Manager Richa Sigdel, Finance Director
We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this
19 day of August, 2019 that the merchandise or services hereinafter specified have been received and are approved for payment:
August 1 - 14, 2019
C I T Y O F P A S C O
Council Meeting of:
Accounts Payable Approved
The City Council
Page 16 of 85
BAD DEBT WRITE-OFF/COLLECTION
July 1 -July 31, 2019
1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-off are
under $20 with no current forwarding address, or are accounts in "occupant" status. Accounts
submitted for collection exceed $20.00.
2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00. Direct
write off including DSHS and Medicare customers; the law requires that the City accept
assignment in these cases.
3. COURT ACCOUNTS RECEIVABLE - These are all delinquent non-criminal and criminal
fines, and parking violations over 30 days past due.
4. CODE ENFORCEMENT – LIENS - These are Code Enforcement violation penalties which
are either un-collectable or have been assigned for collections because the property owner has
not complied or paid the fine. There are still liens in place on these amounts which will
continue to be in effect until the property is brought into compliance and the debt associated
with these liens are paid.
5. CEMETERY - These are delinquent accounts over 120 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed $10.00.
6. GENERAL - These are delinquent accounts over 120 days past due or statements are returned
with no forwarding address. Those submitted for collection exceed $10.00.
7. MISCELLANEOUS - These are delinquent accounts over 120 days past due or statements are
returned with no forwarding address. Those submitted for collection exceed $10.00.
Direct
Write-off
Referred to
Collection
Total
Write-off
Utility Billing $ 0.00 32.09 32.09
Ambulance $ 188,334.70 7,410.39 195,745.09
Court A/R $ .00 110,978.00 110,978.00
Code Enforcement $ .00 23,637.00 23,637.00
Cemetery $ .00 .00 .00
General $ .00 75.00 75.00
Miscellaneous $ .00 .00 .00
TOTAL: $ 188,334.70 142,132.48 330,467.18
Page 17 of 85
AGENDA REPORT
FOR: City Council August 12, 2019
TO: Dave Zabell, City Manager
Rick White, Director
Community & Economic Development
Regular Meeting: 8/19/19
FROM: Angie Pitman, Urban Development
Coordinator
Community & Economic Development
SUBJECT: 2020 HOME Annual Work Plan and Allocation (MF# BGAP 2019-004)
I. REFERENCE(S):
Proposed Resolution
Planning Commission Minutes Dated: 6/20/19 and 7/18/19
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. _____, approving Federal 2020 HOME
Annual Work Plan and Allocation.
III. FISCAL IMPACT:
Pasco's share of Federal HOME funds is $207,000 (including program income).
IV. HISTORY AND FACTS BRIEF:
Pasco entered into a HOME Consortium Agreement with Richland and Kennewick in
1996 making the City eligible for Federal HOME funds. Every three years, during the
renewal the from withdraw to opportunity the given are cities member cycle,
consortium, make changes to the cooperative agreement, or select a new Lead Agency.
In April 2019, the Consortium renewed the Agreement through December 31, 2022.
HOME funds are allocated based on need and income eligibility and may be used
anywhere within the city limits, however, neighborhoods designated as priority by
Pasco in targeted first is Funding receive first the Council City consideration.
Longfellow and Museum neighborhoods, then within low-moderate income census
tracts (201, 202, 203 and 204).
Page 18 of 85
If HOME funds cannot be applied to those areas, then they are used as needed within
the Pasco city limits for the benefit of eligible low-moderate income families.
This item was discussed by Council at the August 12, 2019 workshop meeting.
V. DISCUSSION:
The City is restricted to using HOME funds for down payment assistance for first time
homebuyers in accordance with the Tri-Cities HOME Consortium Cooperative
Agreement approved by all three cities in 2010, renewed in 2019.
From 2015 through 2018, HOME funds provided down payment assistance to 71 Pasco
first time homebuyers at a maximum of $10,000 per loan. In program year 2019, only
two (2) down payment assistance loans have been funded to date. A program change
allowing down payment assistance up to a maximum 20% of the purchase price is
expected to again make homeownership affordable for first time homebuyers. The loan
is a silent second, zero percent, deferred payment loan. Additional funds are available
up to $4,000 for eligible closing costs that may be forgiven after six (6) years.
Estimated HOME entitlement funds totaling $207,000 (including program income) will
be available to provide down payment assistance for an estimated four (4) or more first
time homebuyers in 2020, based on need. Staff presented recommendations for funding
at the July 18, 2019 Planning Commission meeting. The Planning Commission
recommended approval of staff funding recommendations as presented.
Page 19 of 85
RESOLUTION NO. __________
A RESOLUTION APPROVING FEDERAL 2020 HOME ANNUAL WORK PLAN AND
ALLOCATION
WHEREAS, the City of Pasco together with Kennewick and Richland renewed a cooperative
agreement in 2019 continuing participation through 2022 in the Consortium originally formed in 1996
under the Home Investments Partnership (HOME) Program; and
WHEREAS, the Consortium allows the three cities to be eligible for federal HOME funds; and
WHEREAS, the City has established a Community Housing Improvement Program (CHIP); and
WHEREAS, $207,000 is expected to be available from entitlement funds, plus program income,
for Pasco HOME projects in program year 2020, NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
Section 1. That the 2020 HOME funds received by the City of Pasco shall be allocated to
the Community Housing Improvement Program (CHIP) First Time Homebuyer Assistance program
which operates city-wide with priority given to neighborhood improvement areas and low-moderate
income census tracts as follows, and;
PY 2020 Proposed Activities Budget Units
2020 Restricted for Administration $ 10,000
2020 Down Payment Assistance (max 20% of purchase) $181,000 4
2020 Closing Costs (up to $4,000, forgiven) $ 16,000
$207,000 4
Contingent Project
Permanent Supportive Housing Up to $800,000 50
Section 2. That the City Manager or his delegate is hereby authorized to sign all agreements
in accordance with the 5-Year Consolidated Plan, and Annual Action Plan Supplements previously
approved by Council.
PASSED by the City Council of the City of Pasco this day of , 2019.
CITY OF PASCO:
_____________________________
Matt Watkins
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Angela Pashon Kerr Law Group
Interim City Clerk City Attorney
Page 20 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JUNE 20, 2019
7:00 PM
PUBLIC HEARINGS:
C. Block Grant 2020 HOME Fund Allocations (MF# BGAP 2019-004)
Chairperson Myhrum read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the 2020 HOME Fund Allocations.
The cities of Pasco, Kennewick and Richland entered into a HOME Consortium Agreement in 1996 making
the City eligible for Federal HOME funds. The agreement was renewed through 2023 for the purpose of
housing improvement. Pasco’s share of the entitlement is estimated to be $107,000. In addition to the
entitlement, HOME program income (money from repayment of previous loans) is estimated to be
$100,000 for 2020 and may be used for Down Payment Assistance or an eligible Community Housing
Development Organization (CHDO) project depending on need.
Staff recommends allocating 2020 HOME entitlement funds to the First Time Homebuyer Down Payment
Assistance Program, a contingent project for new construction infill or tenant based rental assistance
should also be added if needed to meet timeliness.
There were questions and discussion between Commissioners and Staff regarding the content in the staff
report and requested allocations.
The public hearing was opened for public testimony.
There was no public testimony but the hearing was left open for the next Planning Commission meeting
in July.
Page 21 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JULY 18, 2019
7:00 PM
PUBLIC HEARINGS:
D. Block Grant 2020 HOME Fund Allocations (MF# BGAP 2019-004)
Chairperson Roach read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the 2020 HOME Fund Allocations.
This is the second public hearing for this item. Staff included recommended allocations in the staff report.
There was no further public testimony or comments.
Commissioner Bowers moved, seconded by Commissioner Cochran, the Planning Commission
recommend the City Council approve the use of funds for the 2020 HOME Investment Partnerships
entitlement as recommended by Staff. The motion passed unanimously.
Page 22 of 85
AGENDA REPORT
FOR: City Council August 12, 2019
TO: Dave Zabell, City Manager
Rick White, Director
Community & Economic Development
Regular Meeting: 8/19/19
FROM: Angie Pitman, Urban Development
Coordinator
Community & Economic Development
SUBJECT: 2020 Neighborhood Stabilization Program (NSP) Annual Work Plan Allocation
(MF# BGAP 2019-005)
I. REFERENCE(S):
Proposed Resolution
Planning Commission Minutes Dated: 6/20/19 and 7/18/19
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Resolution No. _____, approving the 2020 NSP
Program Year Annual Work Plan and Allocation.
III. FISCAL IMPACT:
$101,882 from NSP Program Income
IV. HISTORY AND FACTS BRIEF:
The City of Pasco received Neighborhood Stabilization Program (NSP) entitlement
pass-through grant funds, authorized under Title III of the Housing and Economic
Recovery Act of 2008 (HERA) from Washington State Department of Commerce (WA
DOC).
The City recovered 16 foreclosed properties to date, more than double the estimated
amount. Down payment assistance was provided to 12 homebuyers, three below 50%
of median income accounting for 43% of the funds used. The City also purchased and
rehabilitated four homes, which were sold to income eligible homebuyers.
In May, 2016, NSP Closeout Agreement 08-F6401-014 was executed which included a
Program Income Reuse plan requiring at least 25% of program income received be
Page 23 of 85
used to benefit persons 50% or below Area Median Income (AMI). At grant closeout,
the City had $64,819 of unexpended program income. Since closeout, program income
received has increased this amount to $101,882 from payoff of NSP down payment
assistance loans.
This item was discussed by Council at the August 12, 2019 workshop meeting.
V. DISCUSSION:
The city is able to convert NSP program income funds to the CDBG Program to
continue to recover foreclosed properties and offer down payment assistance in Pasco.
As of July 16, 2019, there is NSP program income on hand in the amount of
$101,882.18. This amount represents all program income less allocated expenses
collected since the grant close out. The city is requesting transfer of $101,882.18 of
NSP program income to the CDBG program and continued authorization to transfer
future program income.
Staff proposes the funds be used to provide homeowner assistance (DPA/owner
occupied rehabilitation) for up to three households located in target areas in the low -
moderate census tracts (201, 202, 203, and 204) or for a contingency project added for
Permanent Supportive Housing (50 units) to support priority homeless needs.
Staff presented recommendations for funding at the July 19, 2018 Planning
Commission meeting. The Planning Commission recommended approval of staff
funding recommendations as presented.
Page 24 of 85
RESOLUTION NO. __________
A RESOLUTION APPROVING THE 2020 NSP PROGRAM YEAR ANNUAL
WORK PLAN AND ALLOCATION
WHEREAS, the Neighborhood Stabilization Program (NSP) is authorized under Title III
of the Housing and Economic Recovery Act of 2008 (HERA), administered by the US
Department of Housing & Urban Development (HUD), and subject to both CDBG and HOME
regulations for the purpose of stabilizing neighborhoods negatively affected by foreclosures and
abandoned properties, and
WHEREAS, the City has requested transfer of NSP1 program income to its CDBG
program, and
WHEREAS, estimated program income funds totaling $101,882 are available to fund
CDBG eligible projects, NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
Section 1. That the Pasco City Council hereby approves the 2020 Neighborhood
Stabilization Program (NSP) Plan work plan allocation as follows:
2020 Proposed Activities Budget Units
Restricted for Administration 10% of PI (08-8014) $ 8,000.00
Down Payment Assistance/Minor Rehab (03-8014) $ 67,882.18 2
Down Payment Assistance/Minor Rehab **25% (04-8014) $ 26,000.00 1
**Households < 50% AMI $101,882.18 3
Contingent Project
Permanent Supportive Housing $100,000.00 50
PASSED by the City Council of the City of Pasco this _____ day of ___________, 2019.
_____________________________
Matt Watkins
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Angela Pashon Kerr Law Group
Interim City Clerk City Attorney
Page 25 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JUNE 20, 2019
7:00 PM
PUBLIC HEARINGS:
D. Block Grant 2020 Neighborhood Stabilization Program (NSP) Fund
Allocations (MF# BGAP 2019-005)
Chairperson Myhrum read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the 2020 Neighborhood
Stabilization Program (NSP) Fund Allocations. The City received $426,343 in CDBG funding for the
program in 2010. The City has recovered 16 foreclosed properties to date, more than double the
estimated amount. Down payment assistance has been provided to 12 homebuyers and the City has
purchased and rehabilitated 4 homes which have been sold to income eligible households. As of
December 2018, the City of Pasco shows program income on hand in the amount of $80,468. Staff is
requesting to transfer $80,468 of the program income from the Disaster Recovery Grant Reporting System
(DRGR) to the Integrated Disbursement Information System (IDIS) for receipt to the CDBG program as
program income.
Staff proposed the funds to be used to provide owner occupied rehabilitation for up to 3 households
located in target areas in the low-moderate census tracts (201, 202, 203 and 204).
There were questions and discussion between Commissioners and Staff regarding the content in the staff
report and requested allocations.
The public hearing was opened for public testimony.
There was no public testimony but the hearing was left open for the next Planning Commission meeting
in July.
Page 26 of 85
MINUTES
PLANNING COMMISSION MEETING
City Hall – 525 North Third Avenue – Council Chambers
THURSDAY, JULY 18, 2019
7:00 PM
PUBLIC HEARINGS:
E. Block Grant 2020 Neighborhood Stabilization Program (NSP) Fund
Allocations (MF# BGAP 2019-005)
Chairperson Roach read the master file number and asked for comments from staff.
Rick White, Community & Economic Development Director, discussed the 2020 Neighborhood
Stabilization Program (NSP) Fund Allocations. This is the second public hearing for this item. Staff
included recommended allocations in the staff report.
There was no further public testimony or comments.
Commissioner A. Campos moved, seconded by Commissioner Bykonen, the Planning Commission
recommend the City Council approve the use of funds for the 2020 Neighborhood Stabilization Program
(NSP) entitlement set forth above, as recommended by Staff. The motion passed unanimously.
Page 27 of 85
AGENDA REPORT
FOR: City Council August 15, 2019
TO: Dave Zabell, City Manager Regular Meeting: 8/19/19
FROM: April Culwell, Executive Administrative
Assistant
Executive
SUBJECT: Agreement with Franklin County Historical Society
I. REFERENCE(S):
Letter from Dr. Richard Scheuerman, Historical Society Executive Director
Proposed Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Agreement for Services with Franklin County Historical
Society and, further, authorize the City Manager to execute the agreement.
III. FISCAL IMPACT:
Current contract $9,500 annually; general fund
IV. HISTORY AND FACTS BRIEF:
The city has contracted with the Franklin County Historical Society since 1997 to
provide certain services to both the city and community as a whole. The agreement
modestly compensates Society for providing a reliable source of historical information
to community members. A popular and much commented venue has been the display
case in the City Hall lobby area.
The agreement is for a term of five (5) years, ending December 31, 2024.
V. DISCUSSION:
Discussion
Page 28 of 85
.9
''
.;_-;§
q .A
I
4&1 H‘|STOR|CAL SOCIETY
305 North 4th St 'Pasco,WA 93301-5324 '509—547—37l4°info@fchsmuseum.com
July 10,2019
Mr.Dave Zabell,Manager
City of Pasco
525 North 3”‘Avenue
Pasco,Washington 99301
Dear Mr.Zabell,
Thanks so much for the abiding support provided by the City of Pasco to the Franklin County
Historical Society and Museum.In recent years this critical funding has provided archival,
research,and exhibit services for the city through successful operation of the museum.In
accordance with our agreement we have continued quarterly exhibits at City Hall
highlighting area history including the recent installation of panels for the recent "Trails,
Traditions &Toil"exhibit on area Hispanic culture.We've been pleased to hear very
favorable reports from local community members and visitors commenting on the various
museum upgrades made this past year to promote appreciation of our city and regional
heritage.
Enclosed please find an updated agreement for your approval between the City of Pasco and
the Franklin County Historical Society.On behalfofour Board of Trustees and museum staff,
please convey our sincere appreciation to the members of the City Council.
All the best for your continued good work benefiting area residents,celebrating diversity,
and safeguarding our priceless heritage.
Sincerely,\
@0424/
Dr.Richard Scheuerman
Executive Director
CITY OF PASCU
JUL 1 0 2019
CITY MAN/\(ilIRԤon I-IH
Page 29 of 85
AGREEMENT FOR SERVICES
CITY OF PASCO AND FRANKLIN COUNTY HISTORICAL SOCIETY
This agreement is made and entered into between the City of Pasco,a municipal corporation of the State
of Washington,hereinafter called “City”and the Franklin County Historical Society,a Washington non-
pro?t corporation,hereinafter called “Society,”
WHEREAS,the City desires to enrich the cultural and historical awareness of its citizens and to
provide a resource for materials concerning the history of the City of Pasco;and
WHEREAS,the City itself does not have the current ability in-house to provide such services and the
Franklin County Historical Society is desirous of performing such services for the City,NOW THEREFORE,
For the mutual considerations set forth herein the parties agree as follows:
Section 1.Term:This agreement shall be a term of ?ve (5)years,commencing on January 1,2019 and
ending on the 315‘day of December 2024,and shall renew armually on January 1 each year thereafter,provided,
however,either party may terminate this agreement by giving the other party at least ninety (90)days advance
written notice of their desire to tenninate.
Section 2.Scope of Work;The Society shall provide all labor,materials and tools at its own expense,
(except as stated otherwise herein),necessary to provide the City and the citizens of the Pasco the following
during the term of this agreement:
A.Resources:
I Maps of Pasco and southern Franklin County
I News clippings and brochures related to Pasco and southern Franklin County businesses,
homes and leading citizens.
0 Photographs documenting the history of Pasco,including aerial View of Pasco and southern
Franklin County.
Telephone and business directories from past years.
Books,manuscripts and other documents relating Pasco’s local history.
Notebooks containing alphabetized obituaries of Pasco citizens.
School yearbooks and memorabilia from local civic organizations and businesses.
B.Oral Histories:purchase camera,equipment,materials,and provide staff time to interview citizens
regarding their contribution to Pasco and Franklin County.
C.Exhibits:prepare in install historical displays quarterly in the exhibit cases at the entrance to City
Hall.
D.Speaker’s Series:provide a resource for citizens and civic organizations who are interested in
historical and/or educational programs.
E.Hispanic History Project:add artifacts,photographs and archival materials to the Society’s
collection which will better re?ect the cultural diversity of the greater Pasco community.
Section 3.Compensation:The Society shall receive annual compensation from the City during the term
of this agreement in the amount of nine thousand ?ve hundred dollars ($9500.00),in equal semi—armual
payments in March and September.
Page 30 of 85
DATED THIS day of ,2019
CITY OF PASCO IVRANKLINCOUNTY HISTORICAL SOCIETY
Matt Watkins,Mayor Lara Hastings,President
Sandy Johnson,Secretary
Page 31 of 85
AGENDA REPORT
FOR: City Council August 8, 2019
TO: Dave Zabell, City Manager Regular Meeting: 8/19/19
FROM: Zach Ratkai, Director
Administrative & Community Services
SUBJECT: DNR Aquatic Lands Lease - Chiawana Park Western Dock
I. REFERENCE(S):
Proposed Lease
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve the Aquatic Lands Lease No. 20-A81594 with the
Washington access and use public for Resources Natural of Department State
recreational dock on the Columbia River, and further authorize the City Manager to
execute the lease.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
The attached Department of Natural Resources Lease is for the western-most dock at
Chiawana Park located in the vicinity of Rd 96 and Shuman Lane. This lease is known
as a Joint Aquatics Resources Permit, or JARPA for short. This particular lease covers
the encroachment of the dock into the Columbia River. The last action on the lease
occurred in 2007, with the current agreement expiring on August 31, 2019. The attached
is a twelve (12) year lease renewal for joint City/State use of this dock facility. This is a
no-cost lease for the duration of term, which now expires on August 31, 2031.
This United States Army Corps of Engineers has been informed of this lease and has
been made aware of the renewal action. City staff has received no adverse feedback from
the Corps on the continuation of this use.
V. DISCUSSION:
Staff recommends approval of the proposed lease renewal.
Page 32 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 1 of 31 Lease No. 20-A81594
When recorded, return to:
Zach Ratkai
525 N. 3rd Avenue
Pasco, WA 99301
AQUATIC LANDS LEASE
Lease No. 20-A81594
Grantor: Washington State Department of Natural Resources
Grantee(s): City of Pasco
Legal Description: (NE1/4 SW1/4), Section 20, Township 09 North, Range 29 East, W.M.
Complete Legal Description on Page 30
Auditor Reference Number 1712014
Assessor’s Property Tax Parcel or Account Number: Not Applicable
Assessor’s Property Tax Parcel or Account Number for Upland parcel used in conjunction with
this lease: Not Applicable
THIS LEASE is between the STATE OF WASHINGTON, acting through the Department of
Natural Resources (“State”), and CITY OF PASCO, a government agence (“Tenant”).
BACKGROUND
Tenant desires to lease the aquatic lands commonly known as Columbia River, which are
shorelands and bedlands, located in Franklin County, Washington, from State, and State desires
to lease the property to Tenant pursuant to the terms and conditions of this Lease. State has
authority to enter into this Lease under Chapter 43.12, Chapter 43.30 and Title 79 of the Revised
Code of Washington (RCW).
THEREFORE, the Parties agree as follows:
Page 33 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 2 of 31 Lease No. 20-A81594
SECTION 1 PROPERTY
1.1 Property Defined.
(a) State leases to Tenant and Tenant leases from State the real property described in
Exhibit A together with all the rights of State, if any, to improvements on and
easements benefiting the Property, but subject to the exceptions and restrictions
set forth in this Lease (collectively the “Property”).
(b) This Lease is subject to all valid interests of third parties noted in the records of
Franklin County, or on file in the Office of the Commissioner of Public Lands,
Olympia, Washington; rights of the public under the Public Trust Doctrine or
federal navigation servitude; and treaty rights of Indian Tribes.
(c) This Lease does not include a right to harvest, collect, or damage natural
resources, including aquatic life or living plants; water rights; mineral rights; or a
right to excavate or withdraw sand, gravel, or other valuable materials.
(d) State reserves the right to grant easements and other land uses on the Property to
others when the easement or other land uses will not interfere unreasonably with
the Permitted Use.
1.2 Survey and Property Descriptions.
(a) Tenant warrants that the legal description provided in Exhibit A is a true and
accurate description of the Property boundaries and the improvements to be
constructed or already existing on the Property. Tenant’s obligation to provide a
true and accurate description of the Property boundaries is a material term of this
Lease.
(b) State’s acceptance of the record of survey referenced in Exhibit A does not
constitute agreement that this record of survey accurately reflects the actual
amount of land used by Tenant. Tenant’s use or occupancy of any state-owned
aquatic lands outside the Property boundaries is a material breach of this Lease
and State may seek remedies under Section 14 of this Lease in addition to any
other remedies afforded by law or equity or otherwise.
(c) Tenant warrants that the Property lies only in front of upland property owned or
otherwise legally controlled by the Tenant.
(d) Tenant shall hold State harmless and will not seek damages from State in the
event a subsequent record of survey reveals an error in the legal description
provided in Exhibit A.
1.3 Inspection. State makes no representation regarding the condition of the Property,
improvements located on the Property, the suitability of the Property for Tenant’s Permitted Use,
compliance with governmental laws and regulations, availability of utility rights, access to the
Property, or the existence of hazardous substances on the Property. Tenant inspected the
Property and accepts it “AS IS.”
SECTION 2 USE
Page 34 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 3 of 31 Lease No. 20-A81594
2.1 Permitted Use. Tenant shall use the Property for:
Public Use and Access Recreational Dock
(the “Permitted Use”), and for no other purpose. This is a water-dependent use. Exhibit B
describes the Permitted Use in detail. The Permitted Use is subject to additional obligations in
Exhibit B.
2.2 Restrictions on Permitted Use and Operations. The following limitations and
requirements apply to the Property and adjacent state-owned aquatic land. Tenant’s compliance
with the following does not limit Tenant’s liability under any other provision of this Lease.
(a) Tenant shall not cause or permit:
(1) Damage to natural resources,
(2) Waste, or
(3) Deposit of material, unless approved by State in writing. This prohibition
includes deposit of fill, rock, earth, ballast, wood waste, refuse, garbage,
waste matter, pollutants of any type, or other matter.
(b) Tenant shall not cause or permit grounding, scour, or damage to aquatic land and
vegetation. This prohibition includes the following limitations:
(1) Tenant shall not allow floating structures to come in contact with
underlying shorelands or bedlands (“ground out”). Tenant must either (1)
locate all floating structures in water too deep to permit grounding out or
(2) install stoppers sufficient to prevent grounding, keeping the bottom of
the structure above the level of the substrate.
2.3 Conformance with Laws. Tenant shall, at all times, keep current and comply with all
conditions and terms of permits, licenses, certificates, regulations, ordinances, statutes, and other
government rules and regulations regarding Tenant’s use or occupancy of the Property.
2.4 Liens and Encumbrances. Unless expressly authorized by State in writing, Tenant shall
keep the Property free and clear of liens or encumbrances arising from the Permitted Use or
Tenant’s occupancy of the Property.
SECTION 3 TERM
3.1 Term Defined. The term of this Lease is twelve (12) years (the “Term”), beginning on
the 1st day of September, 2019 (the “Commencement Date”), and ending on the 31st day of
August, 2031 (the “Termination Date”), unless terminated sooner under the terms of this Lease.
3.2 Renewal of the Lease. This Lease does not provide a right of renewal. Tenant may apply
for a new lease, which State has discretion to grant. Tenant must apply for a new lease at least
one (1) year prior to Termination Date. State will notify Tenant within ninety (90) days of its
intent to approve or deny a new Lease.
Page 35 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 4 of 31 Lease No. 20-A81594
3.3 End of Term.
(a) Upon the expiration or termination of this Lease, Tenant shall remove
Improvements in accordance with Section 7, Improvements, and surrender the
Property to State in the same or better condition as on the Commencement Date,
reasonable wear and tear excepted.
(b) Definition of Reasonable Wear and Tear.
(1) Reasonable wear and tear is deterioration resulting from the Permitted Use
that has occurred without neglect, negligence, carelessness, accident, or
abuse of the Property by Tenant or any other person on the premises with
the permission of Tenant.
(2) Reasonable wear and tear does not include unauthorized deposit of
material prohibited under Paragraph 2.2 regardless of whether the deposit
is incidental to or the byproduct of the Permitted Use.
(c) If Property is in worse condition, excepting for reasonable wear and tear, on the
surrender date than on the Commencement Date, the following provisions apply.
(1) State shall provide Tenant a reasonable time to take all steps necessary to
remedy the condition of the Property. State may require Tenant to enter
into a right-of-entry or other use authorization prior to the Tenant entering
the Property if the Lease has terminated.
(2) If Tenant fails to remedy the condition of the Property in a timely manner,
State may take steps reasonably necessary to remedy Tenant’s failure.
Upon demand by State, Tenant shall pay all costs of State’s remedy,
including but not limited to the costs of removing and disposing of
material deposited improperly on the Property, lost revenue resulting from
the condition of the Property, and administrative costs associated with the
State’s remedy.
3.4 Holdover.
(a) If Tenant remains in possession of the Property after the Termination Date, the
occupancy will not be an extension or renewal of the Term. The occupancy will
be a month-to-month tenancy, on terms identical to the terms of this Lease, which
either Party may terminate on thirty (30) days’ written notice.
(1) The monthly rent during the holdover will be the same rent that would be
due if the Lease were still in effect and all adjustments in rent were made
in accordance with its terms.
(2) Payment of more than the monthly rent will not be construed to create a
periodic tenancy longer than month-to-month. If Tenant pays more than
the monthly rent and State provides notice to vacate the property, State
shall refund the amount of excess payment remaining after the Tenant
ceases occupation of the Property.
(b) If State notifies Tenant to vacate the Property and Tenant fails to do so within the
time set forth in the notice, Tenant will be a trespasser and shall owe the State all
amounts due under RCW 79.02.300 or other applicable laws.
SECTION 4 RENT
Page 36 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 5 of 31 Lease No. 20-A81594
4.1 Annual Rent.
(a) Until adjusted as set forth below, Tenant shall pay to State an annual rent of Zero
Dollars ($0).
(b) The annual rent, as it currently exists or as adjusted or modified (the “Annual
Rent”), is due and payable in full on or before the Commencement Date and on or
before the same date of each year thereafter. Any payment not paid by State’s
close of business on the date due is past due.
(c) Public Use and Access. This Use allows for free or reduced rent for public use
and access that meets the requirements of WAC 332-30-131. If the Use ceases to
meet these requirements, the State will charge Tenant water-dependent rent.
4.2 Payment Place. Tenant shall make payment to Financial Management Division, 1111
Washington St SE, PO Box 47041, Olympia, WA 98504-7041.
4.3 Adjustment Based on Use. Annual Rent is based on Tenant’s Permitted Use of the
Property, as described in Section 2 above. If Tenant’s Permitted Use changes, the Annual Rent
shall be adjusted as appropriate for the changed use.
4.4 Rent Adjustment Procedures.
(a) Notice of Rent Adjustment. State shall provide notice of adjustments to the
Annual Rent allowed under Paragraph4.5(b) to Tenant in writing no later than
ninety (90) days after the anniversary date of the Lease.
(b) Procedures on Failure to make Timely Adjustment. If the State fails to provide the
notice required in Paragraph 4.4(a), State shall not collect the adjustment amount
for the year in which State failed to provide notice. Upon providing notice of
adjustment, State may adjust and prospectively bill Annual Rent as if missed or
waived adjustments had been implemented at the proper interval. This includes
the implementation of any inflation adjustment.
4.5 Rent Adjustments for Water-Dependent Uses.
(a) Inflation Adjustment. State shall adjust water-dependent rent annually pursuant to
RCW 79.105.200-.360, except in those years in which State revalues the rent
under Paragraph 4.5(b) below. This adjustment will be effective on the
anniversary of the Commencement Date.
(b) Revaluation of Rent. At the end of the first four-year period of the Term, and at
the end of each subsequent four-year period, State shall revalue the
water-dependent Annual Rent in accordance with RCW 79.105.200-.360.
(c) Rent Cap. State shall increase rent incrementally in compliance with RCW
79.105.260 as follows: If application of the statutory rent formula for
water-dependent uses would result in an increase in the rent attributable to such
uses of more than fifty percent (50%) in any one year, State shall limit the actual
increase implemented in such year to fifty percent (50%) of the then-existing rent.
In subsequent, successive years, State shall increase the rental amount
incrementally until the State implements the full amount of increase as
determined by the statutory rent formula.
Page 37 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 6 of 31 Lease No. 20-A81594
SECTION 5 OTHER EXPENSES
5.1 Utilities. Tenant shall pay all fees charged for utilities required or needed by the
Permitted Use.
5.2 Taxes and Assessments. Tenant shall pay all taxes (including leasehold excise taxes),
assessments, and other governmental charges applicable or attributable to the Property, Tenant’s
leasehold interest, the improvements, or Tenant’s use and enjoyment of the Property.
5.3 Right to Contest. If in good faith, Tenant may contest any tax or assessment at its sole
cost and expense. At the request of State, Tenant shall furnish reasonable protection in the form
of a bond or other security, satisfactory to State, against loss or liability resulting from such
contest.
5.4 Proof of Payment. If required by State, Tenant shall furnish to State receipts or other
appropriate evidence establishing the payment of amounts this Lease requires Tenant to pay.
5.5 Failure to Pay. If Tenant fails to pay amounts due under this Lease, State may pay the
amount due, and recover its cost in accordance with Section 6.
SECTION 6 LATE PAYMENTS AND OTHER CHARGES
6.1 Failure to Pay Rent. Failure to pay rent is a default by the Tenant. State may seek
remedies under Section 14 as well as late charges and interest as provided in this Section 6.
6.2 Late Charge. If State does not receive full rent payment within ten (10) days of the date
due, Tenant shall pay to State a late charge equal to four percent (4%) of the unpaid amount or
Fifty Dollars ($50), whichever is greater, to defray the overhead expenses of State incident to the
delay.
6.3 Interest Penalty for Past Due Rent and Other Sums Owed.
(a) Tenant shall pay interest on the past due rent at the rate of one percent (1%) per
month until paid, in addition to paying the late charges determined under
Paragraph 6.2. Rent not paid by the close of business on the due date will begin
accruing interest the day after the due date.
(b) If State pays or advances any amounts for or on behalf of Tenant, Tenant shall
reimburse State for the amount paid or advanced and shall pay interest on that
amount at the rate of one percent (1%) per month from the date State notifies
Tenant of the payment or advance. This includes, but is not limited to, State’s
payment of taxes of any kind, assessments, insurance premiums, costs of removal
and disposal of materials or Improvements under any provision of this Lease, or
other amounts not paid when due.
Page 38 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 7 of 31 Lease No. 20-A81594
6.4 Referral to Collection Agency and Collection Agency Fees. If State does not receive
full payment within thirty (30) days of the due date, State may refer the unpaid amount to a
collection agency as provided by RCW 19.16.500 or other applicable law. Upon referral, Tenant
shall pay collection agency fees in addition to the unpaid amount.
6.5 No Accord and Satisfaction. If Tenant pays, or State otherwise receives, an amount less
than the full amount then due, State may apply such payment as it elects. State may accept
payment in any amount without prejudice to State’s right to recover the balance of the rent or
pursue any other right or remedy. No endorsement or statement on any check, any payment, or
any letter accompanying any check or payment constitutes accord and satisfaction.
6.6 No Counterclaim, Setoff, or Abatement of Rent. Except as expressly set forth
elsewhere in this Lease, Tenant shall pay rent and all other sums payable by Tenant without the
requirement that State provide prior notice or demand. Tenant’s payment is not subject to
counterclaim, setoff, deduction, defense or abatement.
SECTION 7 IMPROVEMENTS
7.1 Improvements Defined.
(a) “Improvements,” consistent with RCW 79.105 through 79.145, are additions
within, upon, or attached to the land. This includes, but is not limited to, fill,
structures, bulkheads, docks, pilings, and other fixtures.
(b) “Personal Property” means items that can be removed from the Property without
(1) injury to the Property or Improvements or (2) diminishing the value or utility
of the Property or Improvements.
(c) “State-Owned Improvements” are Improvements made or owned by State. State-
Owned Improvements includes any construction, alteration, or addition to State-
Owned Improvements made by Tenant.
(d) “Tenant-Owned Improvements” are Improvements authorized by State and (1)
made by Tenant or (2) acquired by Tenant from the prior tenant.
(e) “Unauthorized Improvements” are Improvements made on the Property without
State’s prior consent or Improvements made by Tenant that do not conform to
plans submitted to and approved by the State.
7.2 Existing Improvements. On the Commencement Date, the following Improvements are
located on the Property: main dock, gangway landing dock, gangway, 3 steel piles. The
Improvements are Tenant-Owned Improvements.
7.3 Construction, Major Repair, Modification, and Demolition.
(a) This Paragraph 7.3 governs construction, alteration, replacement, major repair,
modification, demolition, and deconstruction of Improvements (“Work”).
(b) All Work must conform to requirements under Paragraph 7.4. Paragraph 11.3,
which applies to maintenance and minor repair, also applies to all Work under this
Paragraph 7.3.
Page 39 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 8 of 31 Lease No. 20-A81594
(c) Except in an emergency, Tenant shall not conduct Work, without State’s prior
written consent, as follows:
(1) State may deny consent if State determines that denial is in the best
interests of the State or if proposed Work does not comply with
Paragraphs 7.4 and 11.3. State may impose additional conditions
reasonably intended to protect and preserve the Property. If Work is for
removal of Improvements at End of Term, State may waive removal of
some or all Improvements.
(2) Except in an emergency, Tenant shall submit to State plans and
specifications describing the proposed Work at least sixty (60) days before
submitting permit applications to regulatory authorities unless Tenant and
State otherwise agree to coordinate permit applications. At a minimum, or
if no permits are necessary, Tenant shall submit plans and specifications at
least ninety (90) days before commencement of Work.
(3) State waives the requirement for consent if State does not notify Tenant of
its grant or denial of consent within sixty (60) days of submittal.
(d) Tenant shall notify State of emergency Work within five (5) business days of the
start of such Work. Upon State’s request, Tenant shall provide State with plans
and specifications or as-builts of emergency Work.
(e) Tenant shall not commence or authorize Work until Tenant or Tenant’s contractor
has:
(1) Obtained a performance and payment bond in an amount equal to one
hundred twenty-five percent (125%) the estimated cost of construction.
Tenant shall maintain the performance and payment bond until Tenant
pays in full the costs of the Work, including all laborers and material
persons.
(2) Obtained all required permits.
(f) Before completing Work, Tenant shall remove all debris and restore the Property
to an orderly and safe condition. If Work is intended for removal of
Improvements at End of Term, Tenant shall restore the Property in accordance
with Paragraph 3.3, End of Term.
(g) Upon completing Work, Tenant shall promptly provide State with as-built plans
and specifications.
(h) State shall not charge rent for authorized Improvements installed by Tenant
during this Term of this Lease, but State may charge rent for such Improvements
when and if Tenant or successor obtains a subsequent use authorization for the
Property and State has waived the requirement for Improvements to be removed
as provided in Paragraph 7.5.
7.4 Standards for Work.
(a) Applicability of Standards for Work.
(1) The standards for Work in Paragraph 7.4(b) apply to Work commenced in
the five year period following the Commencement Date. Work
commences when State approves plans and specifications.
(2) If Tenant commences Work five years or more after the Commencement
Date, Tenant shall comply with State’s then current standards for Work.
Page 40 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 9 of 31 Lease No. 20-A81594
(3) Tenant may ascertain State’s current standards for Work as follows:
(i) Before submitting plans and specifications for State’s approval as
required by Paragraph 7.3 of the Lease, Tenant shall request State
to provide Tenant with then current standards for Work on State-
owned Aquatic Lands.
(ii) Within thirty (30) days of receiving Tenant’s request, State shall
provide Tenant with current standards for Work, which will be
effective for the purpose of State’s approval of Tenant’s proposed
Work provided Tenant submits plans and specifications for State’s
approval within two (2) years of Tenant’s request for standards.
(iii) If State does not timely provide current standards upon Tenant’s
request, the standards under Paragraph 7.4(b) apply to Tenant’s
Work provided Tenant submits plans and specifications as required
by Paragraph 7.3 within two (2) years of Tenant’s request for
standards.
(iv) If Tenant fails to (1) make a request for current standards or (2)
timely submit plans and specifications to State after receiving
current standards, Tenant shall make changes in plans or Work
necessary to conform to current standards for Work upon State’s
demand.
(b) Standards for Work.
(1) Tenant shall only conduct in-water Work during time periods authorized
for such work under WAC 220-660-110, Authorized Work Times in
freshwater Areas, as amended, or as otherwise directed by the Washington
Department of Fish and Wildlife (WDFW), United States Fish and
Wildlife Service (USFWS), or National Marine Fisheries Service (NMFS).
(2) Tenant shall install grating on new floats, piers, wharves, fingers, docks,
decks, fixed docks, and/or gangways as follows: For floats, fingers, and
docks, Tenant shall install unobstructed grating on at least fifty (50)
percent of the surface area; grating material must have at least sixty (60)
percent functional open space or forty (40) percent or greater multi-
directional open space. For gangways, piers, wharves, decks, and fixed
docks, Tenant shall install grating on one hundred (100) percent of the
surface area; grating material must have at least sixty (60) percent
functional open space or forty (40) percent or greater multi-directional
open space.
7.5 Tenant-Owned Improvements at End of Lease.
(a) Disposition.
(1) Tenant shall remove Tenant-Owned Improvements in accordance with
Paragraph 7.3 upon the expiration, termination, or cancellation of the
Lease unless State waives the requirement for removal.
(2) Tenant-Owned Improvements remaining on the Property on the
expiration, termination, or cancellation date shall become State-Owned
Improvements without payment by State, unless State elects otherwise.
State may refuse or waive ownership. If RCW 79.125.300 or 79.130.040
Page 41 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 10 of 31 Lease No. 20-A81594
apply at the time this Lease expires, Tenant could be entitled to payment
by the new tenant for Tenant-Owned Improvements.
(3) If Tenant-Owned Improvements remain on the Property after the
expiration, termination, or cancellation date without State’s consent, State
may remove all Improvements and Tenant shall pay State's costs.
(b) Conditions Under Which State May Waive Removal of Tenant-Owned
Improvements.
(1) State may waive removal of some or all Tenant-Owned Improvements
whenever State determines that it is in the best interests of the State and
regardless of whether Tenant re-leases the Property.
(2) If Tenant re-leases the Property, State may waive requirement to remove
Tenant-Owned Improvements. State also may consent to Tenant’s
continued ownership of Tenant-Owned Improvements.
(3) If Tenant does not re-lease the Property, State may waive requirement to
remove Tenant-Owned Improvements upon consideration of a timely
request from Tenant, as follows:
(i) Tenant must notify State at least one (1) year before the
Termination Date of its request to leave Tenant-Owned
Improvements.
(ii) State, within ninety (90) days of receiving Tenant's notification,
will notify Tenant whether State consents to some or all Tenant-
Owned Improvements remaining. State has no obligation to grant
consent.
(iii) State’s failure to respond to Tenant’s request to leave
Improvements within ninety (90) days is a denial of the request.
(c) Tenant’s Obligations if State Waives Removal.
(1) Tenant shall not remove Improvements if State waives the requirement for
removal of some or all Tenant-Owned Improvements.
(2) Tenant shall maintain such Improvements in accordance with this Lease
until the expiration, termination, or cancellation date. Tenant is liable to
State for cost of repair if Tenant causes or allows damage to
Improvements State has designated to remain.
7.6 Disposition of Unauthorized Improvements.
(a) Unauthorized Improvements belong to State, unless State elects otherwise.
(b) State may either:
(1) Consent to Tenant ownership of the Improvements, or
(2) Charge rent for use of the Improvements from the time of installation or
construction and
(i) Require Tenant to remove the Improvements in accordance with
Paragraph 7.3, in which case Tenant shall pay rent for the
Improvements until removal, or
(ii) Consent to Improvements remaining and Tenant shall pay rent for
the use of the Improvements, or
Page 42 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 11 of 31 Lease No. 20-A81594
(iii) Remove Improvements and Tenant shall pay for the cost of
removal and disposal, in which case Tenant shall pay rent for use
of the Improvements until removal and disposal.
7.7 Disposition of Personal Property.
(a) Tenant retains ownership of Personal Property unless Tenant and State agree
otherwise in writing.
(b) Tenant shall remove Personal Property from the Property by the Termination
Date. Tenant is liable for damage to the Property and Improvements resulting
from removal of Personal Property.
(c) State may sell or dispose of all Personal Property left on the Property after the
Termination Date.
(1) If State conducts a sale of Personal Property, State shall apply proceeds
first to the State’s administrative costs in conducting the sale, second to
payment of amount that then may be due from the Tenant to the State.
State shall pay the remainder, if any, to the Tenant.
(2) If State disposes of Personal Property, Tenant shall pay for the cost of
removal and disposal.
SECTION 8 ENVIRONMENTAL LIABILITY/RISK ALLOCATION
8.1 Definitions.
(a) “Hazardous Substance” means any substance that now or in the future becomes
regulated or defined under any federal, state, or local statute, ordinance, rule,
regulation, or other law relating to human health, environmental protection,
contamination, pollution, or cleanup.
(b) “Release or threatened release of Hazardous Substance” means a release or
threatened release as defined under any law described in Paragraph 8.1(a).
(c) “Utmost care” means such a degree of care as would be exercised by a very
careful, prudent, and competent person under the same or similar circumstances;
the standard of care applicable under the Washington State Model Toxics Control
Act (“MTCA”), Chapter 70.105D RCW, as amended.
(d) “Tenant and affiliates” when used in this Section 8 means Tenant or Tenant’s
subtenants, contractors, agents, employees, guests, invitees, licensees, affiliates,
or any person on the Property with the Tenant’s permission.
(e) “Liabilities” as used in this Section 8 means any claims, demands, proceedings,
lawsuits, damages, costs, expenses, fees (including attorneys’ fees and
disbursements), penalties, or judgments.
8.2 General Conditions.
(a) Tenant’s obligations under this Section 8 extend to the area in, on, under, or
above:
(1) The Property; and
(2) Adjacent state-owned aquatic lands if affected by a release of Hazardous
Substances that occurs as a result of the Permitted Use.
Page 43 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 12 of 31 Lease No. 20-A81594
(b) Standard of Care.
(1) Tenant shall exercise the utmost care with respect to Hazardous
Substances.
(2) Tenant shall exercise utmost care for the foreseeable acts or omissions of
third parties with respect to Hazardous Substances, and the foreseeable
consequences of those acts or omissions, to the extent required to establish
a viable, third-party defense under the law.
8.3 Current Conditions and Duty to Investigate.
(a) State makes no representation about the condition of the Property. Hazardous
Substances may exist in, on, under, or above the Property.
(b) This Lease does not impose a duty on State to conduct investigations or supply
information to Tenant about Hazardous Substances.
(c) Tenant is responsible for conducting all appropriate inquiry and gathering
sufficient information about the existence, scope, and location of Hazardous
Substances on or near the Property necessary for Tenant to meet Tenant’s
obligations under this Lease and utilize the Property for the Permitted Use.
8.4 Use of Hazardous Substances.
(a) Tenant and affiliates shall not use, store, generate, process, transport, handle,
release, or dispose of Hazardous Substances, except in accordance with all
applicable laws.
(b) Tenant shall not undertake, or allow others to undertake by Tenant’s permission,
acquiescence, or failure to act, activities that result in a release or threatened
release of Hazardous Substances.
(c) If use of Hazardous Substances related to Tenant’s use or occupancy of the
Property results in violation of law:
(1) Tenant shall submit to State any plans for remedying the violations, and
(2) Tenant shall implement any remedial measures to restore the Property or
natural resources that State may require in addition to remedial measures
required by regulatory authorities.
8.5 Management of Contamination, if any.
(a) Tenant and affiliates shall not undertake activities that:
(1) Damage or interfere with the operation of remedial or restoration
activities, if any;
(2) Result in human or environmental exposure to contaminated sediments, if
any;
(3) Result in the mechanical or chemical disturbance of on-site habitat
mitigation, if any.
(b) If requested, Tenant shall allow reasonable access to:
(1) Employees and authorized agents of the Environmental Protection
Agency, the Washington State Department of Ecology, health department,
or other similar environmental agencies; and
(2) Potentially liable or responsible parties who are the subject of an order or
consent decree that requires access to the Property. Tenant may negotiate
Page 44 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 13 of 31 Lease No. 20-A81594
an access agreement with such parties, but Tenant may not unreasonably
withhold such agreement.
8.6 Notification and Reporting.
(a) Tenant shall immediately notify State if Tenant becomes aware of any of the
following:
(1) A release or threatened release of Hazardous Substances;
(2) Any new discovery of or new information about a problem or liability
related to, or derived from, the presence of Hazardous Substances;
(3) Any lien or action arising from Hazardous Substances;
(4) Any actual or alleged violation of any federal, state, or local statute,
ordinance, rule, regulation, or other law pertaining to Hazardous
Substances;
(5) Any notification from the US Environmental Protection Agency (EPA) or
the Washington State Department of Ecology (DOE) that remediation or
removal of Hazardous Substances is or may be required at the Property.
(b) Tenant’s duty to report under Paragraph 8.6(a) extends to lands described in
Paragraph 8.2(a) and to any other property used by Tenant in conjunction with the
Property if a release of Hazardous Substances on the other property could affect
the Property.
(c) Tenant shall provide State with copies of all documents Tenant submits to any
federal, state or local authorities concerning environmental impacts or proposals
relative to the Property. Documents subject to this requirement include, but are
not limited to, applications, reports, studies, or audits for National Pollution
Discharge and Elimination System Permits; Army Corps of Engineers permits;
State Hydraulic Project Approvals (HPA); State Water Quality certification;
Substantial Development permit; and any reporting necessary for the existence,
location, and storage of Hazardous Substances on the Property.
8.7 Indemnification.
(a) Tenant shall fully indemnify, defend, and hold State harmless from and against
Liabilities that arise out of, or relate to:
(1) The use, storage, generation, processing, transportation, handling, or
disposal of any Hazardous Substance by Tenant and affiliates occurring
whenever Tenant occupies or has occupied the Property;
(2) The release or threatened release of any Hazardous Substance resulting
from any act or omission of Tenant and affiliates occurring whenever
Tenant occupies or has occupied the Property.
(b) Tenant shall fully indemnify, defend, and hold State harmless for Liabilities that
arise out of or relate to Tenant’s breach of obligations under Paragraph 8.5.
8.8 Reservation of Rights.
(a) For Liabilities not covered by the indemnification provisions of Paragraph 8.7, the
Parties expressly reserve and do not waive any rights, claims, immunities, causes
of action, or defenses relating to Hazardous Substances that either Party may have
against the other under law.
Page 45 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 14 of 31 Lease No. 20-A81594
(b) The Parties expressly reserve all rights, claims, immunities, and defenses either
Party may have against third parties. Nothing in this Section 8 benefits or creates
rights for third parties.
(c) The allocations of risks, Liabilities, and responsibilities set forth in this Section 8
do not release either Party from or affect the liability of either Party for Hazardous
Substances claims or actions by regulatory agencies.
8.9 Cleanup.
(a) If Tenant’s act, omission, or breach of obligation under Paragraph 8.4 results in a
release of Hazardous Substances that exceeds the threshold limits of any
applicable regulatory standard, Tenant shall, at Tenant’s sole expense, promptly
take all actions necessary or advisable to clean up the Hazardous Substances in
accordance with applicable law.
(b) Tenant may undertake a cleanup of the Property pursuant to the Washington State
Department of Ecology’s Voluntary Cleanup Program, provided that Tenant
cooperates with the Department of Natural Resources in development of cleanup
plans. Tenant shall not proceed with Voluntary Cleanup without the Department
of Natural Resources approval of final plans. Nothing in the operation of this
provision is an agreement by the Department of Natural Resources that the
Voluntary Cleanup complies with any laws or with the provisions of this Lease.
Tenant’s completion of a Voluntary Cleanup is not a release from or waiver of
any obligation for Hazardous Substances under this Lease.
8.10 Sampling by State, Reimbursement, and Split Samples.
(a) State may enter the Property and conduct sampling, tests, audits, surveys, or
investigations (“Tests”) of the Property at any time to determine the existence,
scope, or effects of Hazardous Substances.
(b) If such Tests, along with any other information, demonstrate a breach of Tenant’s
obligations regarding Hazardous Substances under this Lease, Tenant shall
promptly reimburse State for all costs associated with the Tests, provided State
gave Tenant thirty (30) calendar days advance notice in nonemergencies and
reasonably practical notice in emergencies.
(c) In nonemergencies, Tenant is entitled to obtain split samples of Test samples,
provided Tenant gives State written notice requesting split samples at least ten
(10) calendar days before State conducts Tests. Upon demand, Tenant shall
promptly reimburse State for additional cost, if any, of split samples.
(d) If either Party conducts Tests on the Property, the conducting Party shall provide
the other with validated final data and quality assurance/quality control/chain of
custody information about the Tests within sixty (60) calendar days of a written
request by the other party, unless Tests are part of a submittal under Paragraph
8.6(c) in which case Tenant shall submit data and information to State without
written request by State. Neither party is obligated to provide any analytical
summaries or the work product of experts.
SECTION 9 ASSIGNMENT AND SUBLETTING
Page 46 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 15 of 31 Lease No. 20-A81594
9.1 State Consent Required. Tenant shall not convey, transfer, or encumber any part of
Tenant’s interest in this Lease or the Property without State’s prior written consent.
(a) In determining whether to consent, State may consider, among other items, the
proposed transferee’s financial condition, business reputation, and experience, the
nature of the proposed transferee’s business, the then-current value of the
Property, and such other factors as may reasonably bear upon the suitability of the
transferee as a tenant of the Property. Tenant shall submit information regarding
any proposed transferee to State at least thirty (30) days prior to the date of the
proposed transfer.
(b) State reserves the right to condition its consent upon:
(1) Changes in the terms and conditions of this Lease, including, but not
limited to, the Annual Rent; and/or
(2) The agreement of Tenant or transferee to conduct Tests for Hazardous
Substances on the Property or on other property owned or occupied by
Tenant or the transferee.
(c) Each permitted transferee shall assume all obligations under this Lease, including
the payment of rent. No assignment, sublet, or transfer shall release, discharge, or
otherwise affect the liability of Tenant.
(d) State’s consent under this Paragraph 9.1 does not constitute a waiver of any
claims against Tenant for the violation of any term of this Lease.
9.2 Rent Payments Following Assignment. The acceptance by State of the payment of rent
following an assignment or other transfer does not constitute consent to any assignment or
transfer.
9.3 Terms of Subleases.
(a) Tenant shall submit the terms of all subleases to State for approval.
(b) Tenant shall incorporate the following requirements in all subleases:
(1) The sublease must be consistent with and subject to all the terms and
conditions of this Lease;
(2) The sublease must provide that this Lease controls if the terms of the
sublease conflict with the terms of this Lease;
(3) The term of the sublease (including any period of time covered by a
renewal option) must end before the Termination Date of the initial Term
or any renewal term;
(4) The sublease must terminate if this Lease terminates for any reason;
(5) The subtenant must receive and acknowledge receipt of a copy of this
Lease;
(6) The sublease must prohibit the prepayment to Tenant by the subtenant of
more than the annual rent;
(7) The sublease must identify the rental amount subtenant is to pay to
Tenant;
(8) The sublease must provide that there is no privity of contract between the
subtenant and State;
Page 47 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 16 of 31 Lease No. 20-A81594
(9) The sublease must require removal of the subtenant’s Improvements and
Personal Property upon termination of the sublease;
(10) The subtenant’s permitted use must be within the scope of the Permitted
Use;
(11) The sublease must require the subtenant to meet the Indemnification
requirements under Section 10;
(12) The sublease must require the subtenant to meet the Insurance
requirements under Section 10
9.4 Short-Term Subleases of Moorage Slips. Short-term subleasing of moorage slips for a
term of one year or less does not require State’s written consent or approval pursuant to
Paragraphs 9.1 or 9.3. Tenant shall conform moorage sublease agreements to the sublease
requirements in Paragraph 9.3.
SECTION 10 INDEMNITY, FINANCIAL SECURITY, INSURANCE
10.1 Indemnity.
(a) Tenant shall indemnify, defend, and hold State, its employees, officers, and agents
harmless from Claims arising out of the use, occupation, or control of the
Property by Tenant, its subtenants, contractors, agents, invitees, guests,
employees, affiliates, licensees, or permittees to the fullest extent permitted by
law and subject to the limitations provided below.
(b) “Claim” as used in this Paragraph 10.1 means any financial loss, claim, suit,
action, damages, expenses, costs, fees (including attorneys’ fees), fines, penalties,
or judgments attributable to bodily injury, sickness, disease, death, and damages
to tangible property, including, but not limited to, land, aquatic life, and other
natural resources. “Damages to tangible property” includes, but is not limited to,
physical injury to the Property, diminution in value, and/or damages resulting
from loss of use of the Property.
(c) State shall not require Tenant to indemnify, defend, and hold State harmless for
claims caused solely by or resulting solely from the negligence or willful act of
the State or State’s elected officials, employees, or agents.
(d) Tenant specifically and expressly waives any immunity that may be granted under
the Washington State Industrial Insurance Act, Title 51 RCW in connection with
its obligation to indemnify, defend, and/or hold State and its agencies, officials,
agents, or employees harmless. Further, the indemnification obligation under this
Lease shall not be limited in any way by any limitation on amount or type of
damages, compensation, or benefits payable to or for any third party under the
worker’s compensation acts.
(e) Only to the extent RCW 4.24.115 applies and requires such a limitation, if a
claim, suit, or action for injuries or damage is caused by or results from the
concurrent negligence of (a) the State or State’s agents or employees and (b) the
Tenant or Tenant’s subtenants, agents, or employees, these indemnity provisions
shall be valid and enforceable only to the extent of the negligence of the Tenant
and those acting on its behalf.
Page 48 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 17 of 31 Lease No. 20-A81594
(f) Section 8, Environmental Liability/Risk Allocation, exclusively shall govern
Tenant’s liability to State for Hazardous Substances and its obligation to
indemnify, defend, and hold State harmless for Hazardous Substances.
10.2 Insurance Terms.
(a) Insurance Required.
(1) Tenant certifies that on the Commencement Date of this Lease it is a
member of a self-insured risk pool for all the liability exposures, its self-
insurance plan satisfies all State requirements, and its self-insurance plan
provides coverage equal to that required in this Paragraph 10.2 and by
Paragraph 10.3, Insurance Types and Limits. Tenant shall provide to State
evidence of its status as a member of a self-insured risk pool. Upon
request by State, Tenant shall provide a written description of its financial
condition and/or the self-insured funding mechanism. Tenant shall provide
State with at least thirty (30) days’ written notice prior to any material
changes to Tenant’s self-insured funding mechanism. If during the term of
this Lease Tenant’s self-insurance plan fails to provide coverage equal to
that required in Paragraph 10.2 and Paragraph 10.3 of this Lease, Tenant
shall procure additional commercial insurance coverage to meet the
requirements of this Lease. The requirements in Paragraph 10.2(a)(3) and
(4) only apply where the Tenant procures additional commercial insurance
to meet the requirements of this Lease.
(2) Unless State agrees to an exception, Tenant shall provide insurance issued
by an insurance company or companies admitted to do business in the
State of Washington and have a rating of A- or better by the most recently
published edition of Best’s Reports. Tenant may submit a request to the
risk manager for the Department of Natural Resources to approve an
exception to this requirement. If an insurer is not admitted, the insurance
policies and procedures for issuing the insurance policies shall comply
with Chapter 48.15 RCW and 284-15 WAC.
(3) All general liability, excess, umbrella, builder’s risk, and pollution legal
liability insurance policies must name the State of Washington, the
Department of Natural Resources, its elected and appointed officials,
agents, and employees as an additional insured by way of endorsement.
(4) All property insurance must name the State of Washington, the
Department of Natural Resources, its elected and appointed officials,
agents, and employees as loss payees.
(5) All insurance provided in compliance with this Lease must be primary as
to any other insurance or self-insurance programs afforded to or
maintained by State.
(b) Waiver.
(1) Tenant waives all rights against State for recovery of damages to the
extent insurance maintained pursuant to this Lease covers these damages.
(2) Except as prohibited by law, Tenant waives all rights of subrogation
against State for recovery of damages to the extent that they are covered
by insurance maintained pursuant to this lease.
Page 49 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 18 of 31 Lease No. 20-A81594
(c) Proof of Insurance.
(1) Tenant shall provide State with a certificate(s) and endorsement(s) of
insurance executed by a duly authorized representative of each insurer,
showing compliance with insurance requirements specified in this Lease;
and, if requested, copies of policies to State.
(2) The certificate(s) of insurance must reference the Lease number.
(3) Receipt of such certificates, endorsements or policies by State does not
constitute approval by State of the terms of such policies.
(d) State must receive written notice before cancellation or non-renewal of any
insurance required by this Lease, as follows:
(1) Insurers subject to RCW 48.18 (admitted and regulated by the Insurance
Commissioner): If cancellation is due to non-payment of premium,
provide State ten (10) days’ advance notice of cancellation; otherwise,
provide State forty-five (45) days’ advance notice of cancellation or non-
renewal.
(2) Insurers subject to RCW 48.15 (surplus lines): If cancellation is due to
non-payment of premium, provide State ten (10) days’ advance notice of
cancellation; otherwise, provide State twenty (20) days’ advance notice of
cancellation or non-renewal.
(e) Adjustments in Insurance Coverage.
(1) State may impose changes in the limits of liability for all types of
insurance as State deems necessary.
(2) Tenant shall secure new or modified insurance coverage within thirty (30)
days after State requires changes in the limits of liability.
(f) If Tenant fails to procure and maintain the insurance described above within
fifteen (15) days after Tenant receives a notice to comply from State, State may
either:
(1) Deem the failure an Event of Default under Section 14, or
(2) Procure and maintain comparable substitute insurance and pay the
premiums. Upon demand, Tenant shall pay to State the full amount paid
by State, together with interest at the rate provided in Paragraph 6.3 from
the date of State’s notice of the expenditure until Tenant’s repayment.
(g) General Terms.
(1) State does not represent that coverage and limits required under this Lease
are adequate to protect Tenant.
(2) Coverage and limits do not limit Tenant’s liability for indemnification and
reimbursements granted to State under this Lease.
(3) The Parties shall use any insurance proceeds payable by reason of damage
or destruction to property first to restore the real property covered by this
Lease, then to pay the cost of the reconstruction, then to pay the State any
sums in arrears, and then to Tenant.
10.3 Insurance Types and Limits.
(a) General Liability Insurance.
(1) Tenant shall maintain commercial general liability insurance (CGL) or
marine general liability (MGL) covering claims for bodily injury, personal
Page 50 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 19 of 31 Lease No. 20-A81594
injury, or property damage arising on the Property and/or arising out of
Tenant’s use, occupation, or control of the Property and, if necessary,
commercial umbrella insurance with a limit of not less than One Million
Dollars ($1,000,000) per each occurrence. If such CGL or MGL insurance
contains aggregate limits, the general aggregate limit must be at least
twice the “each occurrence” limit. CGL or MGL insurance must have
products-completed operations aggregate limit of at least two times the
“each occurrence” limit.
(2) CGL insurance must be written on Insurance Services Office (ISO)
Occurrence Form CG 00 01 (or a substitute form providing equivalent
coverage). All insurance must cover liability arising out of premises,
operations, independent contractors, products completed operations,
personal injury and advertising injury, and liability assumed under an
insured contract (including the tort liability of another party assumed in a
business contract) and contain separation of insured (cross-liability)
condition.
(3) MGL insurance must have no exclusions for non-owned watercraft.
(b) Workers’ Compensation.
(1) State of Washington Workers’ Compensation.
(i) Tenant shall comply with all State of Washington workers’
compensation statutes and regulations. Tenant shall provide
workers’ compensation coverage for all employees of Tenant.
Coverage must include bodily injury (including death) by accident
or disease, which arises out of or in connection with Tenant’s use,
occupation, and control of the Property.
(ii) If Tenant fails to comply with all State of Washington workers’
compensation statutes and regulations and State incurs fines or is
required by law to provide benefits to or obtain coverage for such
employees, Tenant shall indemnify State. Indemnity shall include
all fines; payment of benefits to Tenant, employees, or their heirs
or legal representatives; and the cost of effecting coverage on
behalf of such employees.
(2) Longshore and Harbor Workers’ and Jones Acts. Longshore and Harbor
Workers’ Act (33 U.S.C. Section 901 et seq.) and/or the Jones Act (46
U.S.C. Section 688) may require Tenant to provide insurance coverage in
some circumstances. Tenant shall ascertain if such insurance is required
and, if required, shall maintain insurance in compliance with law. Tenant
is responsible for all civil and criminal liability arising from failure to
maintain such coverage.
(c) Employers’ Liability Insurance. Tenant shall procure employers’ liability
insurance, and, if necessary, commercial umbrella liability insurance with limits
not less than One Million Dollars ($1,000,000) each accident for bodily injury by
accident and One Million Dollars ($1,000,000) each employee for bodily injury
by disease.
10.4 Financial Security.
Page 51 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 20 of 31 Lease No. 20-A81594
(a) At its own expense, Tenant shall procure and maintain during the Term of this
Lease a corporate security bond or provide other financial security that State, at its
option, may approve (“Security”). Tenant shall provide Security in an amount
equal to Zero Dollars ($0), which is consistent with RCW 79.105.330, and secures
Tenant’s performance of its obligations under this Lease, with the exception of
the obligations under Section 8, Environmental Liability/Risk Allocation.
Tenant’s failure to maintain the Security in the required amount during the Term
constitutes a breach of this Lease.
(b) All Security must be in a form acceptable to the State.
(1) Bonds must be issued by companies admitted to do business within the
State of Washington and have a rating of A-, Class VII or better, in the
most recently published edition of Best’s Reports, unless State approves
an exception. Tenant may submit a request to the risk manager for the
Department of Natural Resources for an exception to this requirement.
(2) Letters of credit, if approved by State, must be irrevocable, allow State to
draw funds at will, provide for automatic renewal, and comply with RCW
62A.5-101, et. seq.
(3) Savings account assignments, if approved by State, must allow State to
draw funds at will.
(c) Adjustment in Amount of Security.
(1) State may require an adjustment in the Security amount:
(i) At the same time as revaluation of the Annual Rent,
(ii) As a condition of approval of assignment or sublease of this Lease,
(iii) Upon a material change in the condition or disposition of any
Improvements, or
(iv) Upon a change in the Permitted Use.
(2) Tenant shall deliver a new or modified form of Security to State within
thirty (30) days after State has required adjustment of the amount of the
Security.
(d) Upon any default by Tenant in its obligations under this Lease, State may collect
on the Security to offset the liability of Tenant to State. Collection on the Security
does not (1) relieve Tenant of liability, (2) limit any of State’s other remedies, (3)
reinstate or cure the default or (4) prevent termination of the Lease because of the
default.
SECTION 11 MAINTENANCE AND REPAIR
11.1 State’s Repairs. State shall not be required to make any alterations, maintenance,
replacements, or repairs in, on, or about the Property, or any part thereof, during the Term.
11.2 Tenant’s Repairs, Alteration, Maintenance and Replacement.
(a) Tenant shall, at its sole cost and expense, keep and maintain the Property and
all improvements (regardless of ownership) in good order and repair, in a
clean, attractive, and safe condition.
(b) Tenant shall, at its sole cost and expense, make any and all additions,
Page 52 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 21 of 31 Lease No. 20-A81594
repairs, alterations, maintenance, replacements, or changes to the Property
or to any improvements on the Property which may be required by any
public authority having jurisdiction over the Property and requiring it for
public health, safety and welfare purposes.
(c) Except as provided in Paragraph 11.2(d), all additions, repairs, alterations,
replacements or changes to the Property and to any improvements on the
Property shall be made in accordance with, and ownership shall be
governed by, Section 7, above.
(d) Routine maintenance and repair are acts intended to prevent a decline, lapse, or
cessation of the Permitted Use and associated Improvements. Routine
maintenance or repair that does not require regulatory permits does not require
authorization from State pursuant to Section 7.
11.3 Limitations. The following limitations apply whenever Tenant conducts maintenance,
repair, or replacement.
(a) Tenant shall not use or install treated wood on decks, pilings, or any other
structure at any location above or below water, except that Tenant may use ACZA
treated wood for above water structural framing. Tenant shall never use CCA,
ACQ, or creosote-treated wood at any location.
(b) Tenant shall not use or install tires (for example, floatation or fenders) at any
location above or below water.
(c) Tenant shall install only floatation material encapsulated in a shell resistant to
ultraviolet radiation and abrasion. The shell must be capable of preventing
breakup and loss of floatation material into the water.
(d) Tenant shall not allow new floating structures to come in contact with underlying
shorelands or bedlands (“ground out”). Tenant must either (1) locate all new
floating structures in water too deep to permit grounding out or (2) install stoppers
sufficient to prevent grounding, keeping the bottom of the structure above the
level of the substrate.
SECTION 12 DAMAGE OR DESTRUCTION
12.1 Notice and Repair.
(a) In the event of damage to or destruction of the Property or Improvements, Tenant
shall promptly give written notice to State. State does not have actual knowledge
of the damage or destruction without Tenant’s written notice.
(b) Unless otherwise agreed in writing, Tenant shall promptly reconstruct, repair, or
replace the Property and Improvements as nearly as possible to its condition
immediately prior to the damage or destruction in accordance with Paragraph 7.3,
Construction, Major Repair, Modification, and Demolition and Tenant’s
additional obligations in Exhibit B, if any.
12.2 State’s Waiver of Claim. State does not waive any claims for damage or destruction of
the Property unless State provides written notice to Tenant of each specific claim waived.
Page 53 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 22 of 31 Lease No. 20-A81594
12.3 Insurance Proceeds. Tenant’s duty to reconstruct, repair, or replace any damage or
destruction of the Property or any Improvements on the Property is not conditioned upon the
availability of any insurance proceeds to Tenant from which the cost of repairs may be paid. The
Parties shall use insurance proceeds in accordance with Paragraph 10.2(g)(3).
12.4 Rent in the Event of Damage or Destruction. Unless the Parties agree to terminate this
Lease, there is no abatement or reduction in rent during such reconstruction, repair, and
replacement.
12.5 Default at the Time of Damage or Destruction. If Tenant is in default under the terms
of this Lease at the time damage or destruction occurs, State may elect to terminate the Lease and
State then shall have the right to retain any insurance proceeds payable as a result of the damage
or destruction.
SECTION 13 CONDEMNATION
13.1 Definitions.
(a) “Taking” means that an entity authorized by law exercises the power of eminent
domain, either by judgment, settlement in lieu of judgment, or voluntary
conveyance in lieu of formal court proceedings, over all or any portion of the
Property and Improvements. This includes any exercise of eminent domain on any
portion of the Property and Improvements that, in the judgment of the State,
prevents or renders impractical the Permitted Use.
(b) “Date of Taking” means the date upon which title to the Property or a portion of
the Property passes to and vests in the condemner or the effective date of any
order for possession if issued prior to the date title vests in the condemner.
13.2 Effect of Taking. If there is a taking, the Lease terminates proportionate to the extent of
the taking. If this Lease terminates in whole or in part, Tenant shall make all payments due and
attributable to the taken Property up to the date of taking. If Tenant has pre-paid rent and Tenant
is not in default of the Lease, State shall refund Tenant the pro rata share of the pre-paid rent
attributable to the period after the date of taking.
13.3 Allocation of Award.
(a) The Parties shall allocate the condemnation award based upon the ratio of the fair
market value of (1) Tenant’s leasehold estate and Tenant-Owned Improvements
and (2) State’s interest in the Property; the reversionary interest in Tenant-Owned
Improvements, if any; and State-Owned Improvements, if any.
(b) If Tenant and State are unable to agree on the allocation, the Parties shall submit
the dispute to binding arbitration in accordance with the rules of the American
Arbitration Association.
SECTION 14 DEFAULT AND REMEDIES
Page 54 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 23 of 31 Lease No. 20-A81594
14.1 Default Defined. Tenant is in default of this Lease on the occurrence of any of the
following:
(a) Failure to pay rent or other expenses when due;
(b) Failure to comply with any law, regulation, policy, or order of any lawful
governmental authority;
(c) Failure to comply with any other provision of this Lease;
(d) Commencement of bankruptcy proceedings by or against Tenant or the
appointment of a trustee or receiver of Tenant’s property.
14.2 Tenant’s Right to Cure.
(a) A default becomes an “Event of Default” if Tenant fails to cure the default within
the applicable cure period following State’s written notice of default. Upon an
Event of Default, State may seek remedies under Paragraph 14.3.
(b) Unless expressly provided elsewhere in this Lease, the cure period is ten (10) days
for failure to pay rent or other monetary defaults; for other defaults, the cure
period is thirty (30) days.
(c) For nonmonetary defaults not capable of cure within thirty (30) days, State will
not unreasonably withhold approval of a reasonable alternative cure schedule.
Tenant must submit a cure schedule within thirty (30) days of a notice of default.
The default is not an Event of Default if State approves the schedule and Tenant
works diligently and in good faith to execute the cure. The default is an Event of
Default if Tenant fails to timely submit a schedule or fails to cure in accordance
with an approved schedule.
14.3 Remedies.
(a) Upon an Event of Default, State may terminate this Lease and remove Tenant by
summary proceedings or otherwise.
(b) If the Event of Default (1) arises from Tenant’s failure to comply with restrictions
on Permitted Use and operations under Paragraph 2.2 or (2) results in damage to
natural resources or the Property, State may enter the Property without
terminating this Lease to (1) restore the natural resources or Property and charge
Tenant restoration costs and/or (2) charge Tenant for damages. On demand by
State, Tenant shall pay all costs and/or damages.
(c) Without terminating this Lease, State may relet the Property on any terms and
conditions as State may decide are appropriate.
(1) State shall apply rent received by reletting: (1) to the payment of any
indebtedness other than rent due from Tenant to State; (2) to the payment
of any cost of such reletting; (3) to the payment of the cost of any
alterations and repairs to the Property; and (4) to the payment of rent and
leasehold excise tax due and unpaid under this Lease. State shall hold and
apply any balance to Tenant’s future rent as it becomes due.
(2) Tenant is responsible for any deficiency created by the reletting during
any month and shall pay the deficiency monthly.
(3) At any time after reletting, State may elect to terminate this Lease for the
previous Event of Default.
Page 55 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 24 of 31 Lease No. 20-A81594
(d) State’s reentry or repossession of the Property under Paragraph 14.3 is not an
election to terminate this Lease or cause a forfeiture of rents or other charges
Tenant is obligated to pay during the balance of the Term, unless (1) State gives
Tenant written notice of termination or (2) a legal proceeding decrees termination.
(e) The remedies specified under this Paragraph 14.3 are not exclusive of any other
remedies or means of redress to which the State is lawfully entitled for Tenant’s
breach or threatened breach of any provision of this Lease.
SECTION 15 ENTRY BY STATE
State may enter the Property at any reasonable hour to inspect for compliance with the terms of
this Lease, to monitor impacts to habitat, or survey habitat and species. Tenant grants State
permission to cross Tenant’s upland property to access the Property. Regulatory authorities may
accompany State when State enters the Property. State’s failure to inspect the Property does not
constitute a waiver of any rights or remedies under this Lease.
SECTION 16 DISCLAIMER OF QUIET ENJOYMENT
16.1 No Guaranty or Warranty.
(a) State believes that this Lease is consistent with the Public Trust Doctrine and that
none of the third-party interests identified in Paragraph 1.1(b) will materially or
adversely affect Tenant’s right of possession and use of the Property, but State
makes no guaranty or warranty to that effect.
(b) State disclaims and Tenant releases State from any claim for breach of any
implied covenant of quiet enjoyment. This disclaimer and release includes, but is
not limited to, interference arising from exercise of rights under the Public Trust
Doctrine; Treaty rights held by Indian Tribes; and the general power and authority
of State and the United States with respect to aquatic lands and navigable waters.
(c) Tenant is responsible for determining the extent of Tenant’s right to possession
and for defending Tenant’s leasehold interest.
16.2 Eviction by Third-Party. If a third-party evicts Tenant, this Lease terminates as of the
date of the eviction. In the event of a partial eviction, Tenant’s rent obligations abate as of the
date of the partial eviction, in direct proportion to the extent of the eviction; this Lease shall
remain in full force and effect in all other respects.
SECTION 17 NOTICE AND SUBMITTALS
Following are the locations for delivery of notice and submittals required or permitted under this
Lease. Any Party may change the place of delivery upon ten (10) days’ written notice to the
other.
Page 56 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 25 of 31 Lease No. 20-A81594
State: DEPARTMENT OF NATURAL RESOURCES
Aquatic Resources Division / Rivers District
PO Box 280
Castle Rock, WA 98611
Tenant: CITY OF PASCO
PO Box 293
Pasco, WA 99301
The Parties may deliver any notice in person, by facsimile machine, or by certified mail.
Depending on the method of delivery, notice is effective upon personal delivery, upon receipt of
a confirmation report if delivered by facsimile machine, or three (3) days after mailing. All
notices must identify the Lease number. On notices transmitted by facsimile machine, the Parties
shall state the number of pages contained in the notice, including the transmittal page, if any.
SECTION 18 MISCELLANEOUS
18.1 Authority. Tenant and the person or persons executing this Lease on behalf of Tenant
represent that Tenant is qualified to do business in the State of Washington, that Tenant has full
right and authority to enter into this Lease, and that each and every person signing on behalf of
Tenant is authorized to do so. Upon State’s request, Tenant shall provide evidence satisfactory to
State confirming these representations.
18.2 Successors and Assigns. This Lease binds and inures to the benefit of the Parties, their
successors, and assigns.
18.3 Headings. The headings used in this Lease are for convenience only and in no way
define, limit, or extend the scope of this Lease or the intent of any provision.
18.4 Entire Agreement. This Lease, including the exhibits, attachments, and addenda, if any,
contains the entire agreement of the Parties. This Lease merges all prior and contemporaneous
agreements, promises, representations, and statements relating to this transaction or to the
Property.
18.5 Waiver.
(a) The waiver of any breach or default of any term, covenant, or condition of this
Lease is not a waiver of such term, covenant, or condition; of any subsequent
breach or default of the same; or of any other term, covenant, or condition of this
Lease. State’s acceptance of a rental payment is not a waiver of any preceding or
existing breach other than the failure to pay the particular rental payment that was
accepted.
(b) The renewal of the Lease, extension of the Lease, or the issuance of a new lease to
Tenant, does not waive State’s ability to pursue any rights or remedies under the
Lease.
Page 57 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 26 of 31 Lease No. 20-A81594
18.6 Cumulative Remedies. The rights and remedies of State under this Lease are cumulative
and in addition to all other rights and remedies afforded by law or equity or otherwise.
18.7 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of
this Lease.
18.8 Language. The word “Tenant” as used in this Lease applies to one or more persons and
regardless of gender, as the case may be. If there is more than one Tenant, their obligations are
joint and several. The word “persons,” whenever used, shall include individuals, firms,
associations, and corporations. The word “Parties” means State and Tenant in the collective. The
word “Party” means either or both State and Tenant, depending on the context.
18.9 Invalidity. The invalidity, voidness, or illegality of any provision of this Lease does not
affect, impair, or invalidate any other provision of this Lease.
18.10 Applicable Law and Venue. This Lease is to be interpreted and construed in accordance
with the laws of the State of Washington. Venue for any action arising out of or in connection
with this Lease is in the Superior Court for Thurston County, Washington.
18.11 Statutory Reference. Any reference to a statute means that statute as presently enacted
or hereafter amended or superseded.
18.12 Recordation. At Tenant’s expense and no later than thirty (30) days after receiving the
fully-executed Lease, Tenant shall record this Lease in the county in which the Property is
located. Tenant shall include the parcel number of the upland property used in conjunction with
the Property, if any. Tenant shall provide State with recording information, including the date of
recordation and file number.
18.13 Modification. No modification of this Lease is effective unless in writing and signed by
both Parties. Oral representations or statements do not bind either Party.
18.14 Survival. Any obligations of Tenant not fully performed upon termination of this Lease
do not cease, but continue as obligations of the Tenant until fully performed.
Page 58 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 27 of 31 Lease No. 20-A81594
18.15 Exhibits and Attachments. All referenced exhibits and attachments are incorporated in
the Lease unless expressly identified as unincorporated.
THIS AGREEMENT requires the signature of all Parties and is effective on the date of the last
signature below.
CITY OF PASCO
Dated: , 20
DAVE ZABELL
City Manager
PO Box 293
Pasco, WA 99301
STATE OF WASHINGTON
DEPARTMENT OF NATURAL RESOURCES
Dated: , 20
AMALIA WALTON
Deputy Supervisor for Aquatics and Geology
1111 Washington Street SE
Olympia, WA 98504
Master approved as to form
17th day of January 2019
Jennifer Clements, Assistant Attorney General
Page 59 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 28 of 31 Lease No. 20-A81594
REPRESENTATIVE ACKNOWLEDGMENT
STATE OF WASHINGTON )
) ss.
County of Franklin )
I certify that I know or have satisfactory evidence that DAVE ZABELL is the person who
appeared before me, and said person acknowledged that he signed this instrument, on oath stated
that he was authorized to execute the instrument and acknowledged it as the City Manager of the
City of Pasco to be the free and voluntary act of such party for the uses and purposes mentioned
in the instrument.
Dated: , 20
(Notary Signature)
(Seal or stamp)
(Print Name)
Notary Public in and for the State of
Washington, residing at
My appointment expires
Page 60 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 29 of 31 Lease No. 20-A81594
STATE ACKNOWLEDGMENT
STATE OF WASHINGTON)
) ss.
County of Thurston )
I certify that I know or have satisfactory evidence that AMALIA WALTON is the person who
appeared before me, and said person acknowledged that she signed this instrument, on oath
stated that she was authorized to execute the instrument and acknowledged it as the Deputy
Supervisor for Aquatics and Geology of the Department of Natural Resources, to be the free and
voluntary act of such party for the uses and purposes mentioned in the instrument.
Dated: , 20
(Notary Signature)
(Seal or stamp)
(Print Name)
Notary Public in and for the State of
Washington, residing at
My appointment expires
Page 61 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 30 of 31 Lease No. 20-A81594
EXHIBIT A
That real property legally described and shown as Lease 20-081594 in that Record of Survey
recorded in Franklin County, Washington on December 5, 2007, under Auditor’s File Number
1712014 and in Volume 3 of Surveys at Page 59.
Page 62 of 85
Aquatic Lands Lease (Rev. 1/17/2019) Page 31 of 31 Lease No. 20-A81594
EXHIBIT B
PLAN OF OPERATIONS
1. DESCRIPTION OF PERMITTED USE
Existing Facilities. Main dock- 82.4’ x 6’ (4 - 20.6’ sections), Gangway landing dock- 16’ x 8’,
Gangway- 40’ x 5’ (22’ on SOAL), 3 Steel Piles- 20” diameter (encased in plastic with cone
tops)
A. Proposed Work. Tenant proposes no new facilities or Work.
2. ADDITIONAL OBLIGATIONS
State has not authorized Tenant to conduct any Work on the Property. Tenant shall obtain
State’s prior written consent before conducting any Work Pursuant to Section 7.3 of this
Lease and obtain all necessary regulatory permits for such Work.
A. Tenant shall post clearly the following signs provided by State: “Spills Aren’t
Slick.
Master Approved as to form this
10th day of December 2018
Jennifer Clements, Assistant Attorney General
Page 63 of 85
AGENDA REPORT
FOR: City Council August 9, 2019
TO: Dave Zabell, City Manager Regular Meeting: 8/19/19
FROM: Steve Worley, Director
Public Works
SUBJECT: PACE Engineering Contract Amendment - Columbia East Force Main & Lift
Station Project
I. REFERENCE(S):
Amendment No. 3
Vicinity Map
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve Amendment No. 3 for the Professional Services
Agreement with PACE Engineering for the Columbia East Force Main and Lift Station
project, and further, authorize the City Manager to execute the amendment.
III. FISCAL IMPACT:
Services Professional the to pertain following listed impacts fiscal The below
Agreement (PSA) for the Columbia East Force Main and Lift Station (Project #17003)
Original PSA $559,393.20
Amendment #1 $ 26,709.80
Amendment #2 $ 41,849.00
Amendment #3 $ 39,136.13 (Proposed)
Revised Budget $667,088.13
Costs associated with this PSA are funded through the following:
- Franklin County Economic Development (.09) Grants (2017 and 2018)
- Washington State Capital Budget Direct Appropriation
- Debt Service Paid by the Processors
IV. HISTORY AND FACTS BRIEF:
The City entered into a Professional Services Agreement (PSA) with PACE Engineers
for the design and right-of-way acquisition for the Columbia East Force Main and Lift
Page 64 of 85
Station project in early 2018. The proposed design included:
1. The Columbia East Lift Station: under construction and currently nearing
completion
2. The Columbia East Force Main: a 4.5 mile dual force main extending from the
Columbia East Lift Station to the PWRF along the proposed easements in
private property and City/County public right-of-way
Due to some property owners not willing to grant utility easements to the City for the
construction and operation of the force mains, approximately 1,400 linear feet of the
pipe alignment needs to be adjusted. The modified alignment parallels the previous
alignment, but is shifted approximately 40 feet to the northeast as shown in the "revised
alignment area" in the attached vicinity map.
Adjusting the proposed alignment of the force main requires changes to the design
documents as well as additional acquisition efforts to secure easements on several new
parcels. The scope of Amendment No. 3 accounts for this additional work.
This amendment includes additional topographic surveys to ensure accurate location
and depth of the force mains, revised plan and profile drawings, title reports,
preparation of legal description and exhibits for temporary and permanent utility
easements, preparation of offer letters, negotiations with property owners for utility
easements, and assist the City with recording easement documents.
Council approved the original (PSA) with PACE on April 16, 2018. Two subsequent
amendments have been approved since:
Amendment #1 - Provided additional scope for construction engineering support
services during the Columbia East Lift Station construction.
Amendment #2 - Additional design scope to incorporate odor control in force main,
through pH adjustment and to create a separate set of contract documents for force
main.
V. DISCUSSION:
Staff proposes to expand the scope of work with PACE Engineering to allow for
revising the force main alignment and assist the City with utility easement acquisition.
An amendment to the PSA has been negotiated in the amount of $39,136.13 to
compensate PACE for these additional services.
Professional the to 3 No. of Services approval recommends Staff Amendment
Agreement with PACE Engineering for the Columbia East Force Main and Lift Station
project in the amount of $39,136.13
Page 65 of 85
AMENDMENT NUMBER 3 to
PROFESSIONAL SERVICES AGREEMENT
17003 -COLUMBIA EAST LIFT STATION AND FORCEMAIN PROJECT
CONTRACT #CP9-SR-2A-17-01
WHEREAS,the City and PACE Engineers,Inc.entered into a Professional Services
Agreement on 5/31/2018 to provide engineering services with respect to the Columbia East Lift
Station and Force Main Project.
NOW,THEREFORE,this agreement is amended to allow PACE Engineers,Inc.to
provide additional engineering services as described on Exhibit A &B.
1.Scope of Work:
See Exhibit A ~Revising of Columbia East Pump Station &Forcemain Alignment
2.Fee:
The compensation for the work is based on a Time and Materials Basis not to exceed
the amount of $39,136.13 for a total authorization amount of $667,088.13.Refer to
Exhibit B for the breakdown of hours.
3.Time of performance:
The services shall be complete for the project on or before 12/31/2020.
DATED THIS DAY OF
CITY OF PASCO:
Dave Zabell,City Manager
2019.
PAC ENGINEERS,INC.:
1
/_
‘
4,
,4’/«/I \//i
(4,
v’
/I/LLQ /V'l'cLiK/f-C
Robin D.Nelson.P.E.,Senior Principal Engineer
Page 66 of 85
EXHIBIT A
City of Pasco
Columbia East Regional
Pump Station and Forcemain PS&E
Amendment #3
Scope of Work
The City has requested PACE revise the forcemain alignment and remove from encroaching onto
the Simpiot property.The City reviewed three possible alignments and selected a preferred route
shown below.
§*>\_‘..'
Figure 1 -Forcemain AlignmentAlternzlives
The preferred alignment is shown in black and follows the easterly fence line for Simpiot.This
alignment parallels the original alignment but approximately 40 feet to the east.This alignment is
within the Area of Potential Effect established for environmental evaluation therefore not requiring
amendment to the completed environmental documentation.
This revised alignment will cross the following three parcels;
1.113510088,1336 Dietrich RD,Pasco WA,Cittagazze LLC (Cyle Boeck),
2.113510093,Dietrich RD,Pasco WA,Craft Enterprises LLC (Ron Craft)
3.113510092,1530 Dietrich RD,Pasco WA,Oxarc INC (C.Kelly Bladow,Regional
Operations Manager)
This amendment includes obtaining rights of entry to access each parcel to conduct additional
topographic survey,revising right of way plans and civil plan and pro?le sheets of the 60%check
set for this project,obtaining title reports,preparing legal description and exhibits for three
temporary and permanent utility easements,right of way support to Tierra,preparing offer letters
and negotiating with property owners for utilityeasements,and assisting the City with recording
easement documents.Page 67 of 85
Right of way sub-consultant,Tierra &Associates,Inc.will use the appraisal data and costs
prepared for Simplot to establish compensation for the utility easements along the preferred
alignment above.Tierra agents will prepare and obtain rights of entw for survey purposes from 3
parcels.Tierra will mail all ROE's initially to property owners for signing.Forthose that we receive
no response,Tierra willcontact the property owner via email or telephone and attempt to get a
signed document.if this doesn't work,Tierra will attempt to meet the owner in person by either
scheduling an appointment or knocking on doors.One mailing and two follow up attempts via
email,telephone or in person to obtain signed ROE’s.
Tierra agents will perform and oversee property negotiations for the 3 parcels.Tierra will:
0 Evaluate the AOS(s)and prepare each file Electronically and physically.
0 Prepare three (3)offer package and promptly present offers to purchase the
required real property interests.
-Offer packages to include:offer letter,copy of the AOS,easement documents,
exhibits and other related acquisition documents using WSDOT approved
forms.
o Offer Presentation:Tierra will contact the property owner and meet the owner
in person to present to discuss the project.After the offer is presented to
each property owner,Tierra will attempt to make two “in-person”meetings
with a property owner and three (3)follow up conversations,which will be
via email or phone conversation,to complete negotiations
0 Administrative Settlement:If necessary and properly supported and when
negotiation amounts exceed the just compensation amount,Tierra will
make recommendations for administrative settlements.Subject to Client
approval,Tierra will attempt to secure administrative settlements with
property owners to avoid the condemnation process.
o Provide executed conveyance documents and ROE‘s to the City.
0 Prepare and maintain diaries.
0 Prepare and provide status updates bi-weekly or per the request of the
Client.
0 Agent quality assurance (QA)offiles for submittal to Project Manager.
Budget:
The estimated budget to complete this scope of work revising the forcemain alignment and
assisting the City with utility easement acquisition Is $39,136.13.This budget amends the original
budget along with any previous amendments.
Original Budget =$559,393.20
Amendment #1 =$26,709.80
Amendment #2 =$41,849.00
Amendment #3 =$3.9 1%13
Revised Total Budget:$667,088.13
End of Scope of Work
Page 68 of 85
EXHIBIT B
_u>ommaasoma_...3_.mn.wcnao.<<2_a__2..,.83z_:=_n_um_zmam
_u8_.mQzmsmoo_:3Emmam.mc_.am_.=m.:m£._._2__2_.388:3_umm8<<>Fmum_.maE”m.2&3
Fo_.aQan33»so08%an3%#am?$23
rmwoq:2;3.28m8
ms:.35»Ammm_.wu2ma:?..6_£.3
ms:Sum:oS_<mam
$22n:=n_um_9.22.v3_mn.
_uS<<_=o:.mmx._.___mméa?.mesa.__
Q6.39.
_
53%.
3%
_
.3.8333922
z_m%_8
c3mmmmama_.mom_wwmxaga
S:N.xmsmm2%man_u§.__mmama15:5
mmx“WmmsmmmosEmaEm_._E
IncaAci...es
r,.._$~_8
m_mn38_msezmm.W_u>nmwa531%.w;_mS.8
omo_mo:28_m:m_=$_._..§3_u_.=mm_u_mmxumammm
wS.oo=m:_S=_m§.8m.a
:58$253.5xmucnwv.92.398m5§_a___§_.m:Eo.n_2.398.33.v§..§manna
._.mo:=c_oo<mma?g.2Eco;H.
z_mmom\.:m<m<_um?U63
3.m:uu_m:§._.zo.9am.mm»<<o:a:mm__u_.__._.m9mini?#2_._<_
Page 69 of 85
Page 70 of 85
AGENDA REPORT
FOR: City Council August 13, 2019
TO: Dave Zabell, City Manager Regular Meeting: 8/19/19
FROM: Steve Worley, Director
Public Works
SUBJECT: PWRF Sediment Pond Cleanout - Bio Terra Environment Engineering Contract
I. REFERENCE(S):
Professional Services Agreement
Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to approve the Professional Services Agreement for the Process
Water Reuse Facility Holding Pond Sediment Removal with BioTerra, and further,
authorize the City Manager to execute the agreement.
III. FISCAL IMPACT:
Estimated cost of approximately $1.35 million.
The majority of the project will be funded through assessment to the PWRF food
processors as a maintenance expense and will be supplemented by the recent $500,000
grant awarded through Franklin County .09 Fund.
IV. HISTORY AND FACTS BRIEF:
Prior to 2016 nearly all of the solids in the waste streams from each of the Processors
passed through the PWRF and pumped directly to the crop circles. No facility was in
place to capture any of the organic or inorganic solids in the process water. This
caused numerous problems including premature wear and tear on the piping, pumps,
and equipment, clogged nozzles on the pivots and coated the crops with a film of dirt
such that the nitrogen uptake was significantly reduced and crop yields were adversely
impacted.
In 2013 the City began construction of the sedimentation basin (clarifier) to capture
sand and other solids that passed through the rotary screens process. This improvement
Page 71 of 85
was intended to prevent solids from being conveyed to the crop circles eliminating the
aforementioned performance issues. By 2016 staff determined the volume of sand and
other solids received from the processors was far greater than the design capacity of the
clarifier. In 2016 additional sand traps were installed to capture more sediment. At
that same time the 5MG EQ Pond (now referred to as the sedimentation pond) was
cleaned out and began being used to store the sediment captured and cleaned from the
clarifier, the sand traps and the other three larger storage ponds. These improvements
have helped to significantly enhance treatment and improve performance. However a
consequence is the need to store and disposal of the captured materials.
Over the past several years, City staff has used the 5M gallon pond to store granular
soils captured out of the industrial waste stream received at the PWRF, including solids
removed from the clarifier and the 12 one-thousand-gallon sand traps.
The storage pond is full and is a significant contributor to odors coming from the
facility. The pond also needs to be emptied to address odor issues and to make room
for upcoming Phase 2 improvements.
Several alternatives to remove solids from the sedimentation pond were evaluated,
including an option to apply solids onto an Ecology approved land application
treatment facility. The City is aware of two Ecology approved land-treatment facilities
in the region; Natural Selections and BioTerra Environmental Engineering. These two
were chosen and quotes were requested. Bio Terra has the lowest price for cleaning the
sedimentation pond.
V. DISCUSSION:
This item was discussed at the August 12 Workshop meeting. Staff recommends
approval of the contract.
Page 72 of 85
PUBLIC WORKS DEPARTMENT (509)543-5738/FAX (509)543-5737
PO Box 293/525 North 3rd Ave. Pasco, WA 99301/www.pasco-wa.gov
PWRF Sediment Pond Cleaning Proposal
Maria Serra and Steve Worley held a telephone conversation on July 15, 2019 with Andrew Schmitt of BioTerra
Environmental Engineering (BioTerra). Below is a summary of the information discussed regarding the potential
contracting with BioTerra for the removal of sediment from the PWRF sediment pond.
BioTerra proposes to us a hydraulic pumping system with a separate power unit for the removal of solids. They
will use what is commonly called a ‘pit pump’, which is designed for pumping sludge and other miscellaneous
materials. The pump will be connected to a 6” discharge line with floats, directing the pumped material to a n
elevated stand that will allow trucks to drive beneath it (similar to an elevated water tank at a construction site).
The proposed system is very similar to a “floating dredge” that is used to remove sediment from water bodies.
The elevated stand for the discharge pipe will be built by BioTerra onsite so as not to obstruct PWRF site access
yet allowing for easy loading of the trucks to haul away the material. All suction from the pump will be
performed below the surface to avoid disturbing the top layer of material and, therefore, minimize emission of
further odor/gases.
The operation will initially use tanker trucks to accommodate the fluid nature of the removed material. BioTerra
understand the material may vary as the pumping operation progresses deeper into the pond. It is possible that
this proposed pumping system would become ineffective and require changes to adapt to thicker/denser/dryer
material.
In that case, BioTerra will dismantle the initial pumping system and replace it with another one appropriate for
the new conditions. In this case, dump trailers will be used instead of tanker trucks to haul the material away.
BioTerra does not foresee at this time a need to add water to the pond to assist in pumping the material out of
the pond. If a need for this does arise, an arrangement would be made between both parties to measure the
amount of water added and discount the added weight from the price of each load.
Timing: BioTerra would like four weeks after execution of the agreement to procure the specialized equipment
and tanker trucks and build the elevated stand for the proposed operation.
BioTerra is currently anticipating nine truckloads per day with approx. 30 tons per truckload; three trucks
making three trips each. They are willing to work 12-hr days Monday through Saturday as long as access to the
PWRF is available. Andrew believes they can complete the work in less than 6 months, and the pace of the
operation can be adjusted to meet City’s need.
Bioterra holds a permit with no limitation as to land application, meaning they are allow to apply during winter
months as long as the ground is not frozen (as they plan an injection-type disposal). For them to be able to
continue to work on this project through winter months two conditions must be met: roads must be in adequate
driving condition and the ground at the disposal site must not be frozen.
This will be a performance-based contract. Contract provisions can be tailored to address specific City needs.
The cost per pound of solids removed is fixed at $0.015 and any changes in operation will be the sole
responsibility of Bioterra at no extra charge to the City.
Page 73 of 85
BioTerra Engineering Contract –
PWRF Sediment Pond Cleaning
Page 74 of 85
History
Six food processors discharge waste flows to PWRF
Flows include organic & inorganic solids
Solid passed straight through and pumped directly to the
farm fields for many years
Sediment hurts the quality and yield of crops
Maintenance nightmare for pumps, elbows, pivots & nozzles
2013 –construction of clarifier to settle out solids
2016 -solids volume too great for clarifier; added 12 sand
traps
Solids removed from clarifier and sand traps stored in
Sediment Pond
Sediment Pond now full & cause of major odor problem
Clarifier
Page 75 of 85
Estimates
Staff contacted two qualified firms:
BioTerra Environmental Engineering
Natural Selections
These are the only two companies that have Ecology-
approved disposal sites for PWRF solids
Estimates
BioTerra: $0.015 per wet pound, approximately
$1.5 -$2 million total
Natural Selections: dredging, hauling, composting,
mgmt. fee, fixed fee, approximately $8.7 million total
Source of funding: Processors & Franklin County .09 Grant
Page 76 of 85
Summary
Processor’s and City agree pond needs cleaning
Processors agree to pay for it (except Grimmway)
Discussed pond cleaning at Council’s May 12, 2019 Workshop
Contract approval to Council next week
Solids to be removed Page 77 of 85
Questions?Page 78 of 85
Page 79 of 85
Page 80 of 85
Page 81 of 85
Page 82 of 85
(Imp
De Vm DE
1:
I7)
ffec
Page 83 of 85
Page 84 of 85
Page 85 of 85