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HomeMy WebLinkAbout2020.05.11 Council Remote Workshop PacketRemote Workshop Meeting AGENDA PASCO CITY COUNCIL 7:15 p.m. May 11, 2020 Page 1. REMOTE WORKSHOP INSTRUCTIONS: (a) To attend the Pasco City Council Workshop in "listen only" mode register at GoToWebinar. After registering, you will receive a confirmation email containing information about joining the webinar. Call-in information for "listen-only" mode is: (213) 929-4232 Access Code: 554-263-915 2. CALL TO ORDER: 3. ROLL CALL: 4. VERBAL REPORTS FROM COUNCILMEMBERS: 5. ITEMS FOR DISCUSSION: 3 - 5 (a) Interview for Joint Housing Authority Board, Position No. 4 6 - 51 (b) 2020 Washington State Legislative Session Wrap Up 52 - 56 (c) Comprehensive Plan Environmental Impact Statement (EIS) Update 57 - 58 (d) Administrative and Community Services - Reorganization 59 - 67 (e) Professional Services Agreement - PACE Engineering, PWRF Facility Plan and IPS - Amendment No. 6 68 - 75 (f) Professional Services Agreement - PACE Engineering, Columbia East Force Main & Pump Station - Amendment No. 4 6. MISCELLANEOUS COUNCIL DISCUSSION: 7. EXECUTIVE SESSION: 8. ADJOURNMENT: Page 1 of 75 Remote Workshop Meeting May 11, 2020 (a) REMINDERS: • Thursday, MAY 14, 7:00 PM: Ben Franklin Transit Board Meeting – Virtual Meeting via ZOOM (COUNCILMEMBER RUBEN ALVARADO, Rep.; COUNCILMEMBER ZAHRA ROACH, Alt.) • Friday, MAY 15, 11:30 PM: Benton-Franklin Council of Governments Board Meeting – Virtual Meeting (COUNCILMEMBER RUBEN ALVARADO, Rep., MAYOR PRO TEM BLANCHE BARAJAS, Alt.) This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 2 of 75 AGENDA REPORT FOR: City Council May 6, 2020 TO: Dave Zabell, City Manager Zach Ratkai, Administrative & Community Services Director Remote Workshop Meeting: 5/11/20 FROM: Debby Barham, City Clerk Administrative & Community Services SUBJECT: Interview for Joint Housing Authority Board, Position No. 4 I. REFERENCE(S): Resolution No. 3388 - Appointments to City Boards and Commissions Application (1) (Council only) II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Council to conduct a brief interview with Gregory Garcia. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The Housing Authority is a separate municipal corporation governed by its appointed board of directors. The Authority's basic mission is to provide safe and habitable housing for households with incomes below 80% of the regional medium household income. In the case of the Pasco Housing Authority, it owns and operates about 300 housing units in Pasco and offers other housing opportunities as other federal programs are made available and deemed appropriate by the Board. A Joint Housing Authority Board for the City of Pasco and Franklin County was formed in 1981 by joint Resolution. The Housing Authority Board is comprised of five Commissioners who are appointed for a term of office of five years. The Commissioners for Position Nos. 1 and 3 are selected by the Franklin County Commissioners subject to confirmation by the Pasco City Council, and must be residents of Franklin County. Likewise, the Commissioners for Position Nos. 2, 4 and 5 are selected by the Pasco City Council and subject to confirmation by the Franklin Page 3 of 75 County Commission, and must reside within the City. Position No. 4 term expired on January 28, 2020, which is currently held by Gregory Garcia. V. DISCUSSION: Recruitment for the Board commenced in late 2019 and closed in February 2020. A Council screening committee subsequently reviewed six (6) applications and selected Gregory Garcia, the Joint Housing Authority Board incumbent, to be interviewed by the full Council. Mr. Garcia has served on the Board for two consecutive terms and per Resolution No. 3388, is required to be interviewed at this time. Due to the onset of the COVID-19 pandemic, the interview/appointment process for the City's Boards and Commissions was placed on hold; however, it is proposed that since the Council is interviewing only one candidate for the position and the candidate is the incumbent, the interview could be conducted virtually. Mayor Martinez is recommending reappointment of Mr. Garcia to Position No. 4, subject to Council's confirmation at the May 18, 2020 meeting. Page 4 of 75 RESOLUTION NO. ` A RESOLUTION Providing a Process for Appointments to City Boards and Commissions. WHEREAS, the City of Pasco maintains several citizen advisory boards to assist the delivery of municipal services as well as to advise the City Council in making various policy decisions; and WHEREAS, the appointment process prescribed by the Pasco Municipal Code requires the Mayor to appoint citizens to vacancies on such boards, subject to confirmation of the City Council; and WHEREAS, the Mayor and City Council desire to establish an appointment process which is more collaborative yet efficient for both the applicants and City Council alike;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVES AS FOLLOWS: Section 1: Applications for city boards and commissions shall be solicited annually by the City Manager on behalf of the City Council. Section 2: All applications received by the City Manager shall be reviewed by a City Council committee appointed by the Mayor; such committee, to be known as the "Appointment Screening Committee," shall be ad-hoc, appointed annually, and consist of three members, including the Mayor. The Appointment Screening Committee shall select those applicants it deems best suited for the respective board/commission but not more than three applicants for each vacancy to be filled. The Appointment Screening Committee shall consider the following factors in making their selections for further consideration: a) Geographic representation; b) Gender representation; c) Ethnic representation; d) Familial and financial relationships of board members Section 3: Those applicants selected by the Appointment Screening Committee shall be interviewed by the City Council during a public meeting; provided, however, the Screening Committee may recommend reappointment of an incumbent applicant without interview by the City Council if the incumbent has •-- • - - -•served not more than two consecutive• terms since the last interview. At a City Council meeting following such interview, an interviewed candidate shall be selected by the Mayor for appointment to each vacancy. Any candidate selected by the Mayor shall be subject to confirmation vote of the City Council; a majority vote of the quorum present at such meeting shall be required to confirm the Mayor's appointments. Section 4: Any prior resolutions of the City Council in conflict with the provisions of this resolution shall be superseded by this resolution. PAS D by the City Council ity of Pasco at its regular meeting this 16th day of April, 2012. Matt Watkins, Mayor T T: f APP'S AS TO FORM: Debra Clark,City Clerk Leland B. Kerr, City Attorney Page 5 of 75 AGENDA REPORT FOR: City Council May 5, 2020 TO: Dave Zabell, City Manager Remote Workshop Meeting: 5/11/20 FROM: Dave Zabell, City Manager Executive SUBJECT: 2020 Washington State Legislative Session Wrap Up I. REFERENCE(S): Presentation by Briahna Murray, Vice President, Gordon Thomas Honeywell Governmental Affairs Overview of the 2020 Legislative Session II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: The 2020 legislative session adjourned March 12, 2020. This is the second year of the biennial cycle where the legislature is tasked with implementing supplemental budgets during a short 60-day session. Worth noting is that all bills introduced in the 2019 legislative session were automatically reintroduced in 2020 session. Gordon Thomas Honeywell Governmental Affairs (GTHGA) has been contracted to assist in developing and promoting the Council's legislative priorities to the legislature. GTHGA assists the City in Olympia by providing an on-the-ground presence in Olympia during session, monitoring the legislature throughout the year, and advancing the City's legislative agenda. The City has benefited by maintaining a proactive posture with the legislature regarding the interests of Pasco. One means by which Council has made its concerns and interests known to the legislature, and specifically its legislative delegation, is through the adoption of its City Legislative Priorities Statement. V. DISCUSSION: Page 6 of 75 The City achieved some significant successes during the 2020 session. The attached legislative report provides further detail. GTHGA, Vice President, Briahna Murray will present Council with a wrap up of session and discussion of issues on the horizon. Page 7 of 75 BRIAHNA MURRAY GORDON THOMAS HONEYWELL GOVERNMENTAL AFFAIRS CITY OF PASCO 2020 LEGISLATIVE SESSION Page 8 of 75 PURPOSE Overview of the 2020 Legislative Session Outcome of 2020 Pasco State Legislative Priorities Next steps 2Page 9 of 75 OVERVIEW OF 2020 LEGISLATIVE SESSION Second year of the two-year legislative biennium “Short” Session: lasted 60 days Democrats held majority in both House of Representatives and Senate Focused on adopting supplemental operating, capital, and transportation budgets 2019 legislation “carried over” to 2020 and was still under consideration Total of 3,773 bills considered, 386 passed the Legislature Governor vetoed several budget sections and bills in response to COVID-19 Special session to respond to COVID-19 likely 3Page 10 of 75 OVERVIEW OF 2020 LEGISLATIVE SESSION 2020 SUPPLEMENTAL OPERATING BUDGET SUMMARY The state operating budget funds all state agency operations State fiscal year runs July 1, 2019 -June 30, 2021 The supplemental operating budget amends the budget adopted in 2019 The final supplemental operating budget signed by the Governor authorized $726 million in new expenditures and left $3 billion in reserves •Governor vetoed $235 million in expenditures approved by the Legislature Next revenue forecast: June 2020 4Page 11 of 75 OVERVIEW OF 2020 LEGISLATIVE SESSION 2020 SUPPLEMENTAL CAPITAL BUDGET SUMMARY The state capital budget funds public and nonprofit construction projects (excluding transportation) throughout the state The supplemental capital budget amends the budget adopted in 2019 Total supplemental capital budget: $89.9 million •Average project appropriation: $215,000 5Page 12 of 75 OVERVIEW OF 2020 LEGISLATIVE SESSION 2020 SUPPLEMENTAL TRANSPORTATION BUDGET SUMMARY The supplemental transportation budget amends the budget adopted in 2019 I-976 caused a $453 million revenue shortfall in the 2019-21 Transportation Budget Prior to session, Governor paused projects to give the Legislature flexibility on how to resolve the revenue shortfall The supplemental transportation budget approved by the Legislature allowed all paused project to proceed forward on schedule Pushed out delayed projects and removed canceled projects to balance the 2019-21 budget -this created a long-term revenue shortfall with future years of Connecting Washington no longer balanced. 6Page 13 of 75 OVERVIEW OF 2020 LEGISLATIVE SESSION DEVELOPMENT OF TRANSPORTATION REVENUE PACKAGE The revenue shortfall caused by I-976 creates increased pressure to develop a package. There was some progress this session: •In the Senate, a draft transportation package/project list was shared in 2019; it was revised and shared a second time in 2020 •In the House, a proposal was introduced in 2020 to incrementally increase the gas tax by 9.7 cents over 10 years to fund state-owned culverts. Additionally, project applications were accepted to begin developing a project list Dozens of legislators signed a letter indicating that the Legislature would need to adopt a low carbon fuel standard before they would be willing to vote in favor of any transportation revenue package 7Page 14 of 75 OUTCOME OF PASCO 2020 STATE LEGISLATIVE PRIORITIES Lewis Street Overpass Project -Success Process Water Reuse Facility Improvements -Progress Downtown Pasco Revitalization -Success Economic Development Tools -Failed Defend Local Control -Success In addition to the City’s legislative agenda, the City reviewed dozens of additional proposals and expressed a position 8Page 15 of 75 LEGISLATIVE REQUEST: LEWIS STREET OVERPASS City received $15 million in Connecting Washington Funds •$1.251 million used for design; $13.749 million remaining for construction •City directed to secure grants for remaining funds •Freight Mobility Strategic Investment Board (FMSIB) awarded a $4.4 million grant Governor “paused” all projects after I-976 passed, including Lewis Street Overpass Legislative request for 2020: •Approve the $4.4 million FMSIB grant •“Un-pause” remaining $13.749 million allocated in Connecting Washington 9Page 16 of 75 Advocacy effort: •Testified in both House and Senate Transportation Committees •Met with Chairman Jake Fey, House Transportation Committee •Engaged legislative delegation, plus Rep. Matt Boehnke (R-Kennewick, 8th LD) Legislature “un-paused” $13.749 million in Connecting Washington funds $4.4 million allocated to project; not through FMSIB 10 LEGISLATIVE OUTCOME: LEWIS STREET OVERPASS Page 17 of 75 LEGISLATIVE REQUEST: PROCESS WATER REUSE FACILITY Improvements to expand existing process water reuse facility •Total cost: $43 million over 4 years •Public/private partnership Legislative agenda: city requests that the state contribution $5 million Long-term multi-year funding request Revised to request $500,000 for design due to limited funding availability 11Page 18 of 75 Advocacy effort: •Completed relevant funding request forms and developed request documents •Met with 9th district legislators before session began •Met with 9th district legislators during session Feedback: limited funding available in 2020 Focus on requesting funds in 2021 12 LEGISLATIVE OUTCOME: PROCESS WATER REUSE FACILITY Page 19 of 75 LEGISLATIVE REQUEST: DOWNTOWN REVITALIZATION Requested funding for wider sidewalks, pedestrian-friendly access, plazas, and gathering places to revitalize downtown Pasco Legislative agenda: city requests $2 million Long-term multi-year funding request Builds on previous efforts to secure funding for Peanuts Plaza 13Page 20 of 75 LEGISLATIVE OUTCOME: DOWNTOWN REVITALIZATION Advocacy Effort •Met with 16th District Legislators before session •Met with 16th District Legislators during session •Rep. Skyler Rude championed, with support from Sen. Walsh & Rep. Jinkin House proposed supplemental capital budget: $400,000 $50,000 was needed to complete an emergency levee project in Starbuck Final supplemental capital budget: $350,000 14Page 21 of 75 LEGISLATIVE REQUEST: ECONOMIC DEVELOPMENT TOOLS Local Revitalization Funding (LRF) •Multi-year credit against the state sales tax (e.g. $500,000 for 20 years) to fund infrastructure that, in turn, spurs private development Tax Increment Financing (TIF) •Allowed in most other states •Revenue generated from future economic development can be spent on infrastructure (e.g. future property tax revenues from a project are used to fund a sewer line for the project) •Requires amendment to the state constitution .09 Sales Tax Credit for Economic Development •Rural counties currently receive a .09 sales tax credit for economic development •Credit will expire soon 15Page 22 of 75 LEGISLATIVE OUTCOME: ECONOMIC DEVELOPMENT TOOLS HB 2804: Local Revitalization Financing (LRF) •$15 million in LRF awards; awards capped at $1 million/year for 20 years •Passed out of the House 94-3 •Died in Senate Ways & Means Committee HB 2778 & HJR 4212: Tax Increment Financing (TIF) •Public hearing in the House Finance Committee, but did not advance HB 2494 & SB 5899: .09 Sales Tax Credit for Economic Development •Passed the House Finance Committee •Died before being approved by the entire House of Representatives 16Page 23 of 75 Local Control •Several proposals introduced that would have preempted local decision making on land use •Through strong advocacy from cities, most proposals did not pass •SB 6177 is the only bill that passed removing local control: Removes the ability for cities to require on-site parking for accessory dwelling units (ADUs) within ¼ mile of a major transit stop receiving service at least every 15 minutes Cities may implement off-street parking requirements for ADUs in areas that lack access to street parking capacity, physical space impediments, or other parking infeasibilities Cities are also exempt from this requirement if they have amended or adopted ADU regulations within the last 4 years 17 LEGISLATIVE OUTCOME: LOCAL CONTROL Page 24 of 75 LEGISLATIVE ACTION: SUPPORT/OPPOSE ISSUES State-shared Revenues •Fully funded, for now Public Records Act •HB 1888 passed, exempting year of birth, photographs, and payroll deduction information of public employees and volunteers held in personnel files from public disclosure requirements, but permits the news media to have access to full dates of birth and photographs Local Transportation Funding •Public hearings held on HB 2362 & SB 6652 •Councilmanic sales tax, utility tax, and fuel tax authority for local transportation needs 18Page 25 of 75 LEGISLATIVE ACTION: SUPPORT/OPPOSE ISSUES, CONT. Affordable Housing •HB 1590 passed, authorizing counties to councilmanically increase the sales tax .01 of 1% for affordable housing. Cities get the authority on September 30, 2020 if the county has not imposed •$160 million in state funding allocated to housing and homelessness programs Basic Law Enforcement Academy •Two additional Basic Law Enforcement Academy courses funded, increasing the total number of courses from 19 to 21 per fiscal year Annexation of Unincorporated Islands •SB 5522 passed, authorizing code cities to annex pursuant to an interlocal agreement between the city and county. 19Page 26 of 75 NEXT STEPS Special session likely Next state revenue forecast: June November 2020: All of the House of Representatives & approximately half the Senate are up for re-election Legislature meets for pre-session committee days in September & December 2021 Legislative Session Begins: January 11, 2021 20Page 27 of 75 QUESTIONS? Briahna Murray Vice President Cell: (253) 310-5477 E-mail: bmurray@gth-gov.com Josh Weiss Vice President Cell: (360) 561-3560 E-mail: jweiss@gth-gov.com Shelly Helder Senior Consultant Cell: (360) 209-3339 E-mail: shelder@gth-gov.com Holly Cocci Assistant Consultant Cell: (253) 509-2403 E-mail: hcocci@gth-gov.com Page 28 of 75 1201 Pacific Ave, Suite 2100 203 Maryland Ave., NE Tacoma, WA 98401 www.gth-gov.com Washington, DC 20002 Phone: (253) 620-6500 Phone: (202) 544-2681 Fax: (253) 620-6565 Fax: (202) 544-5763 City of Pasco State Government Relations Report 2020 Legislative Session Dear Mayor & City Council, It was a pleasure to advocate for the City of Pasco throughout the 2020 legislative session. After months of hard work by myself and city staff , I am pleased to share that the City was successful in advancing its legislative priorities. Our biggest successes included ensuring that the Lewis Street Overpass project and associated funding was authorized to proceed forward on-schedule and securing $350,000 for downtown revitalization. These successes would not have been possible without an active and supportive legislative delegation: Sen. Mark Schoesler, Sen. Maureen Walsh, Rep. Mary Dye, Rep. Joe Schmick, Rep. Skyler Rude, and Rep. Bill Jenkin. Sen. Maureen Walsh announced her retirement earlier this year – she has been a strong advocate for Pasco and her many years of service deserve recognition. Additionally, this year, the City also reached out to the 8th district legislators for assistance in advancing the City’s priorities – Sen. Sharon Brown, Rep. Brad Klippert, and Rep. Matt Boehnke. Now that session is officially over, attention has turned to responding to the COVID-19 pandemic. There is much advocacy to do to ensure that state and city government have the resources needed to continue to effectively respond to the pandemic and manage the resulting forthcoming decline in revenue collections. As you’ll read in the attached report, it is likely that the Legislature will convene in a special session – the City’s advocacy will steadfastly continue into that special session. The attached report provides you with the following: 1) An Overview of the 2020 Legislative Session 2) Outcome of Pasco’s 2020 Legislative Priorities 3) Outcome of Pasco’s Support/Oppose Items 4) Information on AWC’s legislative efforts 5) Bill Tracking Thank you for the opportunity to be your advocate. As always, if there are any questions, concerns, or thoughts, please feel free to contact me or city staff. Briahna Murray Vice President Gordon Thomas Honeywell Government Affairs bmurray@gth-gov.com; cell: (253) 310-5477 Page 29 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 2 Overview of the 2020 Legislative Session The 2020 legislative session was the second year of the two-year legislative biennium and was scheduled to be a “short” legislative session lasting sixty days. The primary task of the Legislature in a short session is to develop the supplemental, operating, ca pital, and transportation budgets, which amend the biennial budgets adopted during the first year of the legislative biennium. The 2020 Legislature adopted supplemental budgets, approved 386 bills, and still managed to adjourn within the scheduled sixty days at 8:15PM on the 60th and final day of the legislative session. The Legislature adjourned just as the COVID-19 pandemic was beginning to ramp up, and before the Governor’s Stay Home, Stay Healthy Order was issued. While the Legislature has finished its required work for now, there are already rumors that a special ses sion may be needed later this year to make further changes to the budget in response to the COVID-19 pandemic. Throughout the 2020 legislative session, Democrats continued to hold the majority in b oth the House of Representatives and the State Senate. The House of Representatives was comprised of 57 Democrats and 41 Republicans and the State Senate was comprised of 27 Democrats and 22 Republicans. These majorities will remain in place throughout any special session(s) until December 31, 2019. Going into the 2020 session, legislative leadership cautioned that the session would truly be a “short” session and only address issues that are time pressing and supplemental in nature. This did not, however, prevent legislators from introducing a record number of l egislative proposals for consideration. Bills introduced in 2019 that did not pass into law continued to be under consideration in 2020. These bills, combined with those introduced in 2020, made for a total of 3,773 bills under consideration during the 2020 legislative session. The Legislature passed 386 of these bills – some of which the Governor later vetoed. One of the biggest challenges the Legislature faced this session was how best to respond to Initiative-976. Voters approved Initiative-976 in November 2019, reducing car tab fees to $30 and causing a $453 million revenue shortfall in the 2019 -21 transportation budget. Prior to the beginning of the legislative session, the Governor paused most transportation contracts that were not yet underway in order to provide the Legislature with flexibility in identifying on how best to address the revenue shortfall. To complicate the issue, throughout the legislative session legal challenges to the Initiative languished in the court system remaining unresolved. The 2020 Legislature chose to assume that the Initiative would be upheld and adopted a supplemental transportation budget that addressed the $453 million revenue shortfall and allowed most projects to proceed forward as scheduled. Below is a summary of each of the supplemental budgets adopted by the Legislature, including a highlight of those provisions that the Governor subsequently vetoed once it became clear that state revenues would decline significantly as a result of the COVID-19 pandemic. 2020 Supplemental Operating Budget The 2020 supplemental operating budget adopted by the Legislature was smaller than originally anticipated. The February revenue forecast estimated that there would be $1.5 billion in additional Page 30 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 3 revenue for the 2019-21 biennium. Both the House and the Senate developed supplemental budget proposals that spent just over $1 billion. However, in the final days of the legislative session budget writers reduced the budget from early proposals to proactively prepare for a decline in revenues stemming from the COVID-19 epidemic. The supplemental budget approved by the Legislature included $961 million in new spending. The Governor vetoed $235 million of this new spending, to reduce the total amount of new spending in the final 2020 supplemental budget to $726 million. The operating budget totals $53.3 billion over the 2019-21 biennium, with $3 billion in reserves. The Legislature may be called into a special session to make further budget and policy changes in response to the COVID-19 pandemic. State revenues are expected to decline $3 -4 billion for the 2019-21 biennium. Local government budgets will also need to be revisited to reflect a significant decline in revenue as sales tax and other revenue collections decline and as util ity tax and property tax collections are delayed. As the Legislature explores ways to rebalance the state’s budget, local governments will need to advocate to prevent reductions from state -shared revenues. Below are those items in the supplemental operating budget important to local government, including highlights of which items the Governor vetoed: o $200 million to fund public health activities to manage and mitigate the impact of the COVID -19 pandemic. o $160 million for housing and homelessness. T his includes increased funding for shelter capacity, construction of affordable housing, housing and essential needs, and permanent supportive housing. o A one-time 3% increase for PERS 1 retirees; for local governments that have PERS 1 retirees, this will result in a cost increase at the local level. While the supplemental operating budget provides resources for its own costs, it does not provide additional resources for local governments.   o Two additional Basic Law Enforcement Academy classes are funded each fiscal year, increasing the number of classes from 19 to 21 per year.  3 classes will be held at the Spokane training center.    o Resources are provided for the Department of Fish and Wildlife to map and identify fish blocking culverts.      o A study is funded to develop a statewide medication assisted treatment program in jails.     o A study is funded to identify how to incorporate a “net ecological gain” standard into the Growth Management Act and Shoreline Management Act. The Governor vetoed the following provisions relevant to local governments: o $250,000 to fund a joint legislative task force to develop a business plan for a publicly owned depository/state bank. o $350,000 to fund a work group to make recommendations on changes to the Growth Man agement Act in light of the recent report released by the Ruckelshaus Center. o $10 million of additional funding for the Local Solid Waste Financial Assistance Program. o $75,000 to develop a strategy for future investments in outdoor recreation with a repor t due November 30, 2020. 2020 Supplemental Capital Budget Page 31 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 4 The 2019-21 biennial capital budget appropriated roughly $3.18 billion and left $70 million for the 2020 supplemental budget. An additional $19.8 million was realized by adjusting various accounts within the budget, which allowed for a total supplemental capital budget of $89.9 million. Some highlights of significant investments include:  $7.8 million for projects that enhance shelter capacity around the state.  $5 million for a new competitive grant program for community and cottage housing.  $1 million for preservation of manufactured and mobile home communities.  $10 million for the Community Economic Revitalization Board for projects that construct, repair, and acquire local public facilities to encourage business development and expansion in areas seeking economic growth.  The $95 million that was previously allocated to the Public Works Assistance Account was maintained, but there was no change made to the ongoing diversions from the Account to the Education Legacy Account.  $33.7 million for the Model Toxic Control Account for cleanup projects by local governments.  Although no additional funding is allocated toward fish barrier removal in the capital budget, the Fish Barrier Removal Board is directed to develop a comprehensive statewide culvert remediation plan that fully satisfies the requirements of the injunction. The plan will include recommendations for nonstate barrier corrections that maximize fish habitat gain and other benefits that will assist in salmon recovery. The plan is due to the Legislature by January 15, 2021. The Governor signed the supplemental capital budget approved by the Legislature in full. 2020 Supplemental Transportation Budget The final supplemental transportation budget assumes that Initiative 976 will ultimately be upheld by the Court, resulting in a $453 million loss of transportation revenue in the 2019 -21 biennium. The supplemental budget authorized all project contracts that were put on "pause" prior to the beginning of the legislative session to proceed forward on schedule. To make up for the funding gap, the supplemental budget delays or reduces rail capital projects into the 21 -23 biennium, delays WSDOT Public Transportation Program grants in the 21-23 biennium, makes project reductions based on updated information from WSDOT and incorporates savings from other cancelled or closed out projects. All of these are short-term strategies; several transportation accounts have negative ending fund balances in the next biennium. Altogether, there is a $600 million shortfall for the 21 -23 biennium.   The supplemental budget adds spending authority for agency needs that concern safety, security and support. Some of these investments include:   $6.0 million to the State Ferries System at WSDOT for training, inspections, and naval architecture support.    $2.3 million to the State Patrol to address backlogs of impaired driving case submissions at the state toxicology lab.    $13 million to WSDOT for the transition to a new back office system and customer service center for the Tolling Program.    There are a few adjustments within the final budget that both positively and negatively affect local governments:  $275 million for state-owned fish passage barrier correction, retaining proviso language to coordinate with Fish Barrier Removal Board on watershed approach. The budget directs WSDOT Page 32 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 5 to consider factors while complying with injunction, including presence of other barriers and di rects WSDOT and the Fish Barrier Removal Board to develop a statewide comprehensive plan.  The Safe Routes to School grant program received a $7.3 million increase for a total of $36.5 million over the biennium and the Bicycle and Pedestrian safety grant p rogram received an increase of $13.3 million for a total of $38.3 million over the course of the biennium.  A $10 million reduction in gas tax distribution to local governments (as a result of declining revenues). The Governor made minor line-item vetoes to the supplemental transportation budget approved by the Legislature. Development of Transportation Revenue Package Both the House and Senate Transportation Committee Chairs have indicated that additional transportation revenue is needed to balance the out-years of the transportation budget. Senate Transportation Committee Chair, Sen. Steve Hobbs (D-Lake Stevens) developed a transportation revenue package proposal in 2019 and refined that proposal during the 2020 legislative session. The updated version of the proposal released during the legislative session. The updated proposal included two options for the state to generate funding for transportation: 1) a carbon fee of $10 per metric ton for utilities and $15 per metric ton for other entities, or 2) a cap and invest system which limits greenhouse gas targets and utilizes resulting revenue for transportation purposes. In addition to one of these options, the proposal included a 6 -cent gas tax increase, an assessment on new construction (similar to an impact fee), a fee on for-hire vehicles (including Uber, Lyft, etc.), an automobile parts sales tax, rental car tax, a sales and use tax on bicycles, and several additional increases in existing fees. The proposal would generate $15 billion in new revenue which, once bonded, would make $18-19 billion available for transportation investments throughout the state. The proposal also included a breakdown of how the revenue would be spent, includin g a draft project list. The proposal did not advance in the 2020 legislative session but will serve as a framework for future discussions. The House of Representatives has not yet developed its version of the next transportation revenue package. However, House Transportation Committee Chair Rep. Jake Fey (D-Tacoma) introduced House Bill 2913, which would have raised the gas tax by 9.7 cents over the next 9 years to fund fish passage barrier removal. The first year would increase 0.7 cent per gallon and each following year would increase by an additional 1 cent until 2029. It is estimated this would generate $3.9 billion. Under the proposal, the revenue generated would only go toward state fish passage barriers. There was a public hearing on the bill, but it did not advance. Chairman Fey introduced the bill to demonstrate the size of the culvert problem and the need for substantial new revenue to address state owned culverts in the injunction area and culverts up/down stream. Additionally, dozens of legislators signed a letter indicating that the Legisla ture would need to adopt a low carbon fuel standard before they would be willing to vote on any transportation revenue package. The Legislature considered a low carbon fuel standard through House Bill 1110, sponsored by Representative Joe Fitzgibbon (D-Burien). The bill was originally introduced in the 2019 session and it passed the House 53-43 but died in the Senate. This session the bill passed the House again 52-44 and was referred to the Senate Transportation committee where there was a lengthy public hearing Page 33 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 6 with equal representation from supporters and those opposed. However, the bill was not voted out of the Senate Transportation Committee and died. One of the primary concerns with the policy is the expectation that it will increase gas prices and not result in additional tax revenue for the state to make investments in the transportation system, which is the largest contributor of greenhouse gases. In particular, the Senate Transportation Chair is more interested in a carbon pricing policy that will reduce carbon emissions and create a revenue stream for transportation needs such as fish barrier replacement and stormwater management. 2020 November Elections on the Horizon Now that the 2020 Legislature has concluded its work, attention will begin to shift to the 2020 November elections. All members of the House of Representatives and approximately half the members of the State Senate will need to seek re-election to maintain their position. Several members have announced that they will not seek re -election (listed below). These positions will be filled by new legislators. Official filing week is May 11-15, during this week candidates will formally announce whether they are running. - Representative Sherry Appleton (D-Poulsbo) - Representative Eric Pettigrew (D-Seattle) - Representative Christine Kilduff (D-Tacoma) - Representative Pat Sullivan (D-Covington) - Representative Gael Tarleton (D-Seattle) – running for Secretary of State - Representative Mike Pelliciotti (D-Federal Way) – running for State Treasurer - Representative Beth Doglio (D-Olympia) – running for 10th congressional district - Representative Chris Gildon (R-Puyallup) – running for the Senate - Representative Bill Jenkin (R-Prosser) – running for the Senate - Representative Norma Smith (R-Langley) - Representative Richard DeBolt (R-Chehalis) - Representative Jared Mead (D-Mill Creek) – appointed to the Snohomish County Council - Senator Maureen Walsh (R-Walla Walla) - Senator Randi Becker (R-Enumclaw) - Senator Hans Zeiger (R-Puyallup) – running for Pierce County Council position - Lt. Governor Cyrus Habib 2021 Redistricting The U.S. Census is currently underway and is scheduled to be completed by March 31, 2021. Once the census is completed, Washington State will begin the process of redistricting. Redistricting occurs every 10 years and is the process of adjusting the boundary lines of each legislative district to ensure that an equal number of people are in each district. Once the U.S. Census is complete, the Redistricting Commission will be appointed. The commission has five members: two from each of the majority party caucuses (this year, two Democrats and two Republicans), and a non -partisan, non- voting Chair. Each House and Senate caucus leader appoints one voting member to the commission in January 2021. Outcome of 2020 Pasco Legislative Priorities Page 34 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 7 Lewis Street Overpass The City of Pasco has worked with the legislative delegation for several years to secure funding for the Lewis Street Overpass project. In the 2015 Connecting Washington package, the Legislature appropriated $15 million for the project, and directed the city to look at grant and local funds for the remaining funding needed to complete the project then estimated to cost $30 million. Over the past five years, the City used $1.251 million of the $15 million appropriated to complete design work for the project and worked diligently to secure grant funding. As part of the City’s efforts to secure grant funding, the City applied for and received a $4.4 million grant from the Freight Mobility Strategic Investment Board (FMSIB). However, for FMSIB to award the grant, the Legislature needed to approve the grant as part of the grant agen cy’s LEAP list. When the City developed its Legislative Agenda in early fall of 2020, the City’s top priority request was to request that the Legislature authorize this $4.4 million FMSIB grant. In November 2020, voters approved I -976, causing a $453 million revenue shortfall in the 2019-21 Transportation Budget. The Governor responding by pausing projects to provide the Legislature with flexibility on identifying how best to address the revenue shortfall. One of the many projects put on pause was the $13.749 million for Lewis Street Overpass project. Ensuring that the project was “un - paused” and that the $13.749 million appropriated then also became a top legislative priority for the City. Early in the legislative session, City Manager Dave Zabell traveled to Olympia and testified before both the House and Senate Transportation Committees indicating the importance of authorizing the Lewis Street Overpass project to proceed forward on-schedule. Much of Mr. Zabell’s testimony was captured by local media outlets, which provided further momentum and support for the City’s advocacy efforts. In addition to testifying, the City met with Rep. Jake Fey (D-Tacoma), Chairman of the House Transportation Committee. Rep. Fey understood the importance of the project, but also expressed from concern that, in his opinion, FMSIB did not have a good track record of appropriately administering grant funds. The City worked with its legislative delegation; however, no members of the City’s legislative delegation serve on the House or Senate Transportation Committees. However, Rep. Matt Boehnke (R-Kennewick) in the neighboring 8th legislative district serves on the House Transportation Committee. Ms. Murray and Mr. Zabell met with Rep. Boehnke prior to the beginning of th e legislative session, as well as throughout the legislative session. As a member of the House Transportation Committee, he was helpful in advocating for Lewis Street Overpass. When the House and Senate each released their proposed 2020 supplemental transportation budgets, both proposals provided the necessary funding for Lewis Street Overpass; however, did so in slightly different ways:  The House budget proposal allocated $4.4 million on the LEAP ALL PROJECTS list under “Lewis Street Bridge” and allocated $13.749 million on the LEAP ALL PROJECTS list under “Lewis Street Overpass.” (i.e. rather than allocating the funds through FMSIB, the $4.4 million is allocated directly to the City) Page 35 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 8  The Senate budget proposal allocated $4.4 million FMSIB LEAP LIST under “Lewis Street Overpass” and allocated $13.749 million on the LEAP ALL PROJECTS under “Lewis Street Overpass.” The Mayor sent a formal letter to the House and Senate Transportation Committee Chairs, thanking them each for fully funding the project, and encouraging them to ensure that the final 2020 supplemental transportation fully fund the project through one approach or another. Ms. Murray followed up with the House and Senate Transportation Committee Chairs confirming their receipt of the letter. The final 2020 Supplemental Transportation budget adopted by the Legislature and signed into law by the Governor included a combined appropriation of $18.149 million in state funds to the City of Pasco for the Lewis Street Overpass project; thereby authorizing the project to proceed forward on schedule. This should be considered a great success, and the City should express thanks to the legislative delegation and the chairs of the House and Senate transportation committees. The City has also developed a strong working relationship with Rep. Matt Boehnke to assist in navigating the City’s future transportation needs. Funding for Improvements to the Process Water Reuse Facility Recognizing that the 2020 legislative session would be a “short” legislative se ssion with limited funding opportunities, the City developed a funding request for improvements to the Process Water Reuse Facility expecting it to be a multi-year, long-term funding request. As such, the legislative agenda states that the City requests $5 million over the next two years to contribute to the public- private partnership. Prior to the beginning of the legislative session, Ms. Murray and Mr. Zabell met with the 9th district legislators and discussed this funding request with them. They indicated that there would be limited funding opportunities, and to revise the request to make it smaller and reflect an initial phase of the project. Ms. Murray worked with city staff to revise the request to $500,000 for designing the project. Early in the legislative session, we once again met with the 9th district legislators. They indicated that funding was even more limited than initially understood. They offered to submit a funding request for $50,000. However, rather than submitting a request for that small amount, the City instead indicated that it would be best to work on a larger request for the 2021 legislative session. Moving forward, the City will need to work with the 9th district legislators in the months leading up to the 2021 legislative session. Downtown Revitalization To build on investments into the Lewis Street Overpass and Peanuts Plaza, the City requested $2 million to revitalize downtown Pasco to widen sidewalks for outdoor cafes, improve pedestrian- friendly access, and construct plazas and gathering places. The City did not anticipate receiving the full $2 million requested given the limited funding but was hopeful to receive funding for the initial phase. Page 36 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 9 Mr. Zabell and Ms. Murray met with the 16th district legislators prior to the beginning of the legislative session. Rep. Skyler Rude (R-Walla Walla) agreed to champion the request, with support from Sen. Maureen Walsh and Rep. Bill Jenkin. Rep. Rude submitted the funding request for $2 million to House capital budget writers. As a result of his work with the budget writers, the project was allocated $400,000 in the House proposed capital budget. After the House budget proposal was released, the 16th district legislators learned of the need to fund an emergency levee project in Starbuck for $50,000. The only way to fund the project was to reduce the $400,000 appropriated to the Downtown Revitalization project to $350,000 and appropriate the $50,000 project to Starbuck. The 16th district legislators were appreciative of the City’s understanding of the emergent need. The final supplemental capital budget that was adopted by the Legislature and approved by the Governor included $350,000 for the Downtown Revitalization project. In future years, the City will need to identify specific project components for which to request funding. Economic Development Tools The City requested that the Legislature authorize economic development tools for cities to spur private development within their communities. This was also an Association of Washington Cities’ legislative priority. There were three different proposals considered this session. While none of them passed, they each advanced further this session tha n previous sessions. Below is a description of each proposal:  Local Revitalization Financing (LRF): House Bill 2804, sponsored by Rep. Davina Duerr (D- Bothell) would have provided a competitive process for cities to receive Local Revitalization Financing awards. The awards are a credit against the state sales tax of up to $1 million/year for 20 years for the city to invest in infrastructure that is likely to spur economic development. The Local Revitalization Financing (LRF) program was originally authorized by the Legislature in the mid-2000s but has been remained unfunded since. Projects that were awarded in the mid-2000 have resulted in a significant increase in state and local tax collections, demonstrating that these awards present a good return on investment for the state. The bill was introduced early in session and had two public hearings in the House Local Government and House Finance committees with panels of local government officials testifying to the value of such a tool. The bill did not make it out of the House prior to the House of Origin cutoff, but leadership indicated it was necessary to implement the budget (NTIB) and therefore not subject to cutoff. When the House operating budget was released, it referenced House Bill 2804 and the NTIB designation was confirmed. In the final week of the legislative session, the bill was voted out of the House with near unanimous support, 94-3. The Senate Ways & Means Committee held a public hearing on the bill. There were over two dozen other organizations signed in support of the bill and no one was opposed. The bill was scheduled to be voted out of committee the same day as the hearing, but the committee chose to not vote on the bill. In speaking with several members of the committee afterwards, it was shared that concern over a looming recession in response to Page 37 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 10 the COVID-19 outbreak caused hesitation in supporting a proposal that would have committe d the state to $15 million investment each year for the next 20 years. When the bill passed the House, it did so after release of the strong economic revenue forecast. The day the bill was to be voted out of the Senate committee, the stock market plunged, and COVID-19 continued to spread in Washington, causing Senators to make fiscal decisions in light of a potential recession. Although the bill did not pass, significant progress was made, and momentum was built for a revisit to the policy in the 2021 session.  Tax Increment Financing (TIF): House Bill 2778 and House Joint Resolution 4212, both sponsored by Rep. Pat Sullivan (D-Covington) would have authorized tax increment financing in Washington State – most other states already have tax increment financing. Article IX Section, 2 of the State Constitution requires that the state tax for common schools be applied exclusively to the support of the common schools. Previous Supreme Court rulings have found that tax increment financing is unconstitutional because it diverts property tax revenues from the common schools. For this very reason, introduction of House Bill 2778 was accompanied by HJR 4212 which would have amended the state constitution to allow for tax increment financing. Both proposals had favorable public hearings in the House Finance committee and were voted out of the committee only to die in the House Rules committee. If HJR 4212 had passed both chambers with a 2/3 majority, it would have to be approved by a majority of Washington voters. Although this is an ambitious objective, the W ashington State Constitution has been amended 107 times, so it is not impossible. Over the interim months, Ms. Murray will continue working with the Association of Washington Cities and other cities to educate state legislators on the value and importance of tax increment financing for local economic development. Unlike local revitalization financing (described above), tax increment financing does not require funding from the state budget.  .09 Credit Against the State Sales Tax for Counties: The City of Pasco joined other counties, cities, ports, and other stakeholders in requesting that the .09 credit against the state sales tax for economic development be renewed. Franklin County currently receives funding under this program and appropriates it to many economic development efforts that benefit Pasco and the greater Tri-City community. The statutory authority for this program is due to sunset in 2023. This was a statewide effort led by the Washington Economic Development Association (WEDA) and Greater Spokane Inc. (GSI), although GTH-GA remained engaged in on-the-ground lobbying and strategizing to advance the bill. Sen. Mark Mullet (D- Issaquah) introduced legislation last year, Senate Bill 5899; however, efforts focused on House Bill 2494, sponsored by Rep. Monica Jurado Stonier (D- Vancouver). The bill received strong support from the House Finance Committee. However, once passing out of committee, the bill did not advance. Legislative opposition to the bill is largely based on budget writers’ reluctance to commit any portion of state sales tax revenues. This reluctance was already strong when the Legislature had $1.5 billion in new revenue and was insurmountable once the economic impact from the COVID-19 pandemic became apparent. Page 38 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 11 Moving forward, the City of Pasco should work closely with other coalition partners through the interim to determine whether it will be fruitful to pursue this again in the 2021 session, and if so, what the appropriate legislative strategy will be. Defend Local Control Like the 2019 legislative session, several legislative proposals were introduced in 2020 that would have preempted the City’s authority to regulate land use. Fortunately, most of these bills did not pass into law, in large part due to a group of legislators in the House of Representatives referred to as the “Local Government Champions Caucus.” This group of legislators strongly opposed proposals that preempted local control, and instead encouraged the advancement of proposals that provided local governments with incentives or options on how best to accomplish public policy objectives. Below are the bills that were discussed this legislative session, with those that passed into law listed first, and italicized:  Incentivizing Density: House Bill 2343, sponsored by Rep. Joe Fitzgibbon (D-Burien), expands options for actions cities may take to increase density. The bill is a “sequel” to House Bill 1923, which passed during the 2019 legislative session. House Bill 1923 provided cities with a menu of options to increase density or prompted cities to complete a housing action plan; this bill expands this list of options and adjusts parking requirements. The bill also extends SEPA and GMA appeals from April 1, 2021 to April 1, 2023. The bill was approved by the Legislature, has been signed into law by the Governor, and is effective June 11, 2020.  Regulation of Accessory Dwelling Units (ADUs): Senate Bill 6617, sponsored by Sen. Marko Liias (D-Lynnwood), removes the ability for cities to require on-site parking for accessory dwelling units within ¼ mile of a major transit stop receiving service at least every 15 minutes. Cities may implement off-street parking requirements for ADUs in areas that lack access to street parking capacity, physical space impediments, or other parking infeasibilities. Cities are also exempt from this requirement if they have amended or adopted ADU regulations within the last 4 years. New ADU requirements take effect July 1, 2021. Senate Bill 6617 began as a strict mandate around ADU regulations that was strongly opposed by cities. Cities opposed the bill throughout the session, and the version that passed is significantly narrower than any of the previous iterations. The bill passed the Legislature, has been signed into law by the Governor, and is effective June 11, 2020.  Preemption on Duplex, Triplex, etc. in Single-Family Neighborhoods: House Bill 2780 sponsored by Rep. Nicole Macri, (D-Seattle), and Senate Bill 6536, sponsored by Sen. Mona Das (D-Covington), would have mandated that most cities and counties fully-planning under the GMA eliminate single-family zoning within Urban Growth Areas (UGAs). The bill was opposed by cities and counties but supported by builders, Futurewise, and housing advocates. While stakeholder negotiations resulted in amendments to the bill that slightly narrowed the scope of the zoning mandates, the bill remained highly preemptive for most cities and fully- planning GMA counties. Ultimately local government opposition was enough to prevent both versions of the bill from passing into law, but only with concerted effort. Page 39 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 12  Regulating Number of Unrelated Persons in a Home: Senate Bill 6302, sponsored by Sen. Christine Rolfes (D-Bainbridge Island), would have limited a cities' ability to regulate the number of unrelated persons in a home. The bill was introduced as an attempt to remove barriers to affordable housing options for individuals who would not be able to afford a housing unit on their own, which is a noble aim. However, the drafting of the bill would have prevented use of reasonable criteria such as septic system capacity to regulate the number of occupants in a home. Cities developed an amendment to retain the authority to regulate the number of people in a home based on square footage, but the bill was never brought up for a vote in the House and did not pass into law. Although this bill did not advance this session, it is likely to return in 2021. Outcome of Pasco Support/Oppose Issues In addition to the City’s top legislative priorities, the City identified several issues that it would also support/oppose throughout the legislative process . Additionally, the City reviews bills as they are introduced with city staff and takes positions in support or opposition of bills based on staff review. The outcome of those efforts are outlined below: Finance/General Government:  State-Shared Revenues: The Legislature fully funded state-shared revenues for the 2019-21 legislative biennium. The City of Pasco receives approximately $1.3 million annually from these state accounts. The state is expected to experience a significant decline in state revenues due to the COVID-19 pandemic. This decline may force the state to make budget reductions, including reductions to state-shared revenues.  Property Tax Cap: House Bill 2145, sponsored by Rep. Gerry Pollet (D-Seattle), would have replaced the 1% cap on annual property tax levy increases with a cap based on population and inflation, not to exceed a 3% increase. This legislation has been requested by local governments for several legislative sessions. As with efforts in previous years, the bill did not advance this legislative session. As a reminder, the state temporarily removed the 1% cap on the state’s annual property tax levy as part of the package to respond to McCleary.  Election of Judges: While this issue has been discussed several times in previous legislative sessions, there were no proposals introduced on this subject in 2020.  Labor Reform: The City of Pasco joins AWC and other local governments in opposing legislation that increases labor costs. The Legislature did approve one proposal that increases labor costs and amounts to an “unfunded mandate” on cities: o House Bill 1390, sponsored by Rep. Mari Leavitt (D-University Place), provides a one- time 3% increase to the retirees in the Public Employees’ Retirement System and the Teachers’ Retirement System Plans 1. The increase is capped at $62.50 and will go into effect on July 1, 2020. For jurisdictions who have PERS 1 retirees, this will result in a cost increase at the local level. The state budget provided resources for its own costs but not for local governments. The bill passed both chambers unanimously, was signed into law by the Governor, and is effective July 1, 2020. Page 40 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 13  Public Records Act (PRA) Reform: Pasco is committed to public records openness and transparency while also advancing reasonable reforms to the Public Records Act. This year, the Legislature approved House Bill 1888, sponsored by Rep. Zack Hudgins (D-Renton), which exempts month and year of birth, photographs, and payroll deduction information of public employees and volunteers held in personnel files from public disclosure requirements, but permits the news media to have access to full dates of birth and photographs. The bill was signed into law by the Governor and is effective June 11, 2020. Infrastructure & Economic Development  Infrastructure Funding: Pasco supports funding tools for infrastructure and funding for the Public Works Assistance Account. The 2019 Legislature allocated $95 million to the account; the 2020 Legislature did not increase that funding.  Local Transportation Funding: Pasco supports the efforts of the Association of Washington Cities to advance legislation that would provide cities with more options to increase revenue to fund local transportation projects. The Association of Washington Cities (AWC) worked with Rep. Bill Ramos (D-Issaquah) and Sen. Joe Nguyen (D-White Center) to develop the legislation. This legislation was developed in response to the Joint Transportation Committee study that was released in mid-2019 and estimated the statewide city transportation funding need is $900 million per year. House Bill 2362, and Senate Bill 6652 would have authorized cities to councilmanically: o Increase the sales tax by up to .04 percent of 1% o Impose an additional 2% utility tax (above the current 6% cap) o Impose a local 2-cent fuel tax, with an additional 2 cents that can be voter-approved. Both bills died prior to fiscal cutoff but the House and Senate held public hearings to begin the discussion of local options that could be included in the next transportation revenue package. The public hearings held this session laid the groundwork for these or similar proposals to advance in future legislative sessions or as part of a transportation revenue package.  Lower Snake River Dams: Pasco opposes the removal of dams along both the Columbia and Snake Rivers and encourages the State to perform additional analysis on the economic impact of any such proposals. In 2019, the Legislature allocated $750,000 for a neutral third party to establish a process for local, state, tribal, and federal leaders and stakeholders to address issues associated with the possible breaching or removal of the four lower Snake River dams in order to recover the Chinook salmon populations. That study is currently underway. There was no further legislative action in 2020 regarding the issue.  Affordable Housing: Affordable housing has been a hot topic discussed by the Legislature in recent years. For example, in 2019, the Legislature approved House Bill 1406 to provide cities with a credit against the state sales tax to fund affordable housing. The Legislature con sidered several legislative proposals: Page 41 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 14 o Extend and Expand the Multi-Family Property Tax Exemption: Current law authorizes cities to grant multi-family developments an 8-year property tax exemption; or a 12-year tax exemption if 20% of the units are dedicated to low-income individuals. Each jurisdiction has the authority to further tailor the tax exemption program to include additional income restrictions or identify specific areas of the city where the exemption is offered. Thus far, developers in Pasco have not taken advantage of this tool. House Bill 2620, sponsored by Rep. Amy Walen (D-Kirkland) and Senate Bill 6411, sponsored by Sen. Mona Das (D-Covington), would have authorized local jurisdictions to extend the exemption an additional twelve years for projects that have already been awarded the exemption (either the 8-year or the 12-year) if 20% of the units remained or, in the case of the 8-year became, income restricted. The bill would have also adjusted the population eligibility threshold, allowing cities under 15,000 to use the program. While a broad stakeholder group met several times to reconcile the differences between these two proposals and find agreement, stakeholder discord and opposition from key stakeholders caused the bills to die prior to the chamber-of-origin cutoff deadline. Notably, labor interests expressed opposition to the bill unless any project offered the exemption be required to use prevailing wage. Late in the legislative session, Rep. Nicole Macri (D-Seattle) introduced House Bill 2950. Because the bill was introduced after cutoff deadlines, it was deemed “not subject to cutoff.” The bill established a formal stakeholder group to develop consensus around a proposal to expand and extend the use of the multi-family property tax exemption program prior to the beginning of the 2021 legislative session . The bill also extends any immediately expiring 12-year exemptions until the end of 2021, which primarily impacts housing units in the City of Seattle. The bill received widespread support and passed the Legislature. However, the Governor vetoed the formal stakeholder group to reduce state expenditures as an early cost savings measure to prepare for a forthcoming revenue shortfall stemming from the COVID-19 pandemic. o Local Option Sales Tax Authority: House Bill 1590, sponsored by Rep. Beth Doglio (D- Olympia), authorizes cities and counties to councilmanically impose a .01 of 1% sales tax increase to fund affordable housing and behavioral health facilities. This authority exists in current law but requires voter approval. If the County does not impose the tax by September 30, 2020, then the City will have the authority to impose the tax. The bill was one of the final bills to pass the Legislature and has been signed into law by the Governor. It will become effective law on June 11, 2020. The City of Pasco did not take a position on this bill. o Changes to State Funding for Affordable Housing: House Bill 2797, sponsored by Rep. June Robinson (D-Everett), is commonly referred to as the “trailer bill to House Bill 1406” because the bill makes several changes to the statute enacted in 2019 through House Bill 1406, which allowed counties and cities to receive a credit against the state sales tax to fund affordable housing. House Bill 2797 would have extended the deadline for cities to adopt a qualifying local tax until December 31, 2021. If a City adopts a qualifying local tax, it is eligible to receive twice as much state funding. The bill was Page 42 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 15 widely supported by local governments and housing advocates. The bill passed the Legislature but was vetoed by the Governor as part of his efforts to save state funds in response to the COVID-19 pandemic. The City of Pasco did not take a position on this bill. It’s likely this bill will return in either a special session or the 2021 legislative session.  Main Street Tax Credit Incentive Program: While this issue has been discussed several times in previous legislative sessions, there were no proposals introduced on this subject in 2020. Public Safety  Basic Law Enforcement Academy: Two additional Basic Law Enforcement Academy classes are funded each fiscal year, increasing the number of classes from 19 to 21 per year.  Three classes will be held at the Spokane training center.     Funding to Reduce Gang Violence: In 2019, the Legislature appropriate $1 million for a grant program for criminal street gang prevention and intervention. The 2020 Legislature did not increase or reduce this appropriation.  Marijuana Laws: There were several laws considered related to marijuana laws: o House Bill 2247, sponsored by Rep. Keith Goehner (D-Chelan), would have required the Liquor and Cannabis Board to not issue or renew a marijuana license for any premises located in a jurisdiction that provided a written objection to the LCB stating the marijuana license violates local zoning. The bill was heard in the House Commerce & Gaming Committee but did not otherwise advance in the legislative process. Had the bill passed, it would have brought about greater consistency for marijuana license applicants. o House Bill 2870, sponsored by Rep. Eric Pettigrew (D-Seattle), establishes a Social Equity Program authorizing the Liquor and Cannabis Board (LCB) to issue previously forfeited, cancelled, and revoked marijuana retailer licenses to applicants disproportionately impacted by the enforcement of marijuana prohibition laws. These applicants must also submit a social equity plan to the LCB addressing how they will impact social equity in their business practices. Additionally, the bill establishes a Technical Assistance Competitive Grant Program under the Department of Commerce to provide technical assistance grants to applicants who need assistance with submitting a social equity plan. The bill also establishes a Marijuana Social Equity Task Force to make recommendations to the LCB, including how best to establish and develop the social equity program. House Bill 2870 requires the task force to submit a report of recommended policies to the Governor and the Legislature by December 1, 2020. The report must include a recommendation on whether to issue new marijuana licenses. AWC is included on the task force. House Bill 2870 passed both the House and Senate and is now headed to the Governor for signature. Land Use Page 43 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 16  Pasco DNR Property: The City of Pasco has worked with the Department of Natural Resources (DNR) and the Legislature to facilitate the sale of a portion of the Road 68 property to residential developers. The City is continuing to work with DNR on facilitating the sale of the remaining Road 68 property. The Senate proposed supplemental operating budget included language that would have made it challenging for the Department to sell any further DNR-owned properties. The City of Pasco joined other stakeholders in signing a letter to express concerns with this language. The final supplemental operating budget included the following, less concerning, language: DNR shall report to the appropriate policy and fiscal committees of the legislature by July 2020 information on those parcels currently used for commercial or non-resource use purposes and those identified by the department as transition lands likely to be sold or redeveloped for non-resource use. The appropriate policy and fiscal committees of the legislature shall be kept informed of all proposed transactions, land sales, and exchanges involving trust lands prior to approval by the board, and all related financial and legal documents shall be available as public records immediately following the transaction's completion, as allowed under chapter 42.56 RCW.  Notification of Pre-Annexation Agreements: While this issue has been discussed several times in previous legislative sessions, there were no proposals introduced on this subject in 2020.  Annexation of Unincorporated Islands: The Legislature adopted Senate Bill 5522, sponsored by Senator Dean Takko (D-Longview), allowing counties and code cities to jointly initiate an annexation process for unincorporated territory by adopting an interlocal agreement. A public hearing is required, but a vote of the people is not required. Cities proposing to annex territory are required to give notice of the annexation to an adjacent city and to impacted special purpose districts and allows such an adjacent city or special purpose district to prevent the proposed annexation. Areas zoned for residential use within the annexed area must maintain a zoning designation that allows residential development for five years after the annexation. Pasco Supports the Association of Washington Cities Pasco closely coordinates with the Association of Washington Cities on legislative efforts. To review legislative materials from the Association of Washington Cities regarding the 2020 legislative session, please utilize the links below:  AWC End of Session Webinar: https://wacities.org/advocacy/News/advocacy- news/2020/03/23/awc-legislative-session-wrap-up-webinar (you do not need to register to watch a recording of the webinar)  AWC Budget Matrix: https://wacities.org/docs/default- source/Legislative/1921govsuppbudgets.pdf?sfvrsn=8 Page 44 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 17  AWC End of Session Report: https://wacities.org/advocacy/News/advocacy- news/2020/03/30/2020-session-begins-on-an-optimistic-note-and-ends-on-a-downbeat Pasco Bill Tracking General Government/Finance Bill # Short Description Status Sponsor Position EHB 1390 Providing a benefit increase to certain retirees of the public employees' retirement system plan 1 and the teachers' retirement system plan 1. Passed into law Leavitt HB 1679 (SSB 5676) Authorizing cities planning under the growth management act to impose certain real estate excise taxes by councilmanic action. Died in House Finance/Senate Rules Frame Support HB 2145 Modifying the annual regular property tax revenue growth limit. Died in House Finance Pollet HB 2230 (SB 6080) Subjecting federally recognized Indian tribes to the same conditions as state and local governments for property owned exclusively by the tribe. Passed into law Gregerson Neutral SHB 2889 Concerning utility tax disclosures. Passed into law Griffey HB 2900 Concerning marijuana excise tax distributions to local governments. Died in House Appropriations Peterson Neutral SB 6194 Prohibiting cities and towns from citing the same statutory authority to impose multiple business taxes. Died in Senate Local Gov. Braun Affordable Housing Bill # Short Description Status Sponsor Position HB 1590 Allowing the local sales and use tax for affordable housing to be imposed by a councilmanic authority. Passed into law Doglio Page 45 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 18 ESHB 1754 (SB 5644) Concerning the hosting of the homeless by religious organizations. Passed into law Santos SHB 2343 (SSB 6334) Concerning urban housing supply. Passed into law Fitzgibbon Support SHB 2384 (SB 6232) Concerning the property tax exemption for nonprofit organizations providing rental housing or mobile home park spaces to qualifying households. Passed into law Doglio HB 2452 Reducing the real estate excise tax for multiple-unit housing. Died in House Finance Barkis SHB 2620 (2SSB 6411) Expanding the property tax exemption for new and rehabilitated multiple-unit dwellings in urban growth areas. Died in House Rules/Senate Rules Walen ESHB 2629 (SSB 6414) Waiving utility connection charges for certain properties. Died in Senate Rules Walen SHB 2634 (SB 6366) Exempting a sale or transfer of real property for affordable housing to a nonprofit entity, housing authority, or public corporation from the real estate excise tax. Gov vetoed Walen EHB 2797 (SSB 6631) Concerning the sales and use tax for affordable and supportive housing. Gov vetoed Robinson Neutral HB 2898 (SB 6618) Concerning housing benefit districts. Died in House Community Development Walen SHB 2950 Addressing affordable housing needs through the multifamily housing tax exemption by providing an extension of the exemption until January 1, 2022, for certain properties currently receiving a twelve-year exemption and by convening a work group. Passed into law Macri Page 46 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 19 SB 6212 (HB 2489) Concerning the authority of counties, cities, and towns to exceed statutory property tax limitations for the purpose of financing affordable housing for very low-income households and low-income households. Passed into law Das 2SSB 6231 (HB 2630) Expanding and studying the property tax exemption for physical improvements to single-family dwellings. Passed into law Kuderer SSB 6302 Prohibiting local governments from limiting the number of unrelated persons occupying a home. Died in Senate Rules Rolfes Oppose SB 6386 Reducing impact fees for low- income housing. Died in Senate Rules Zeiger Human Services Bill # Short Description Status Sponsor Position SHB 2649 Concerning homeless shelter capacity. Died in House Rules Ryu Economic Development Bill # Short Description Status Sponsor Position SHB 2494 Concerning sales and use tax for public facilities in rural or border counties. Died in House Rules Stonier Support HB 2778 Concerning community redevelopment financing in apportionment districts. Died in House Rules Sullivan Support ESHB 2804 Addressing local government infrastructure. Died in House Rules Duerr Support HJR 4212 Providing for community redevelopment financing in apportionment districts. Died in House Rules Sullivan Support Marijuana Page 47 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 20 Bill # Short Description Status Sponsor Position HB 2247 Aligning marijuana licensing decisions by the liquor and cannabis board with local zoning ordinances. Died in House Commerce & Gaming Goehner Support E2SHB 2870 (SB 6604) Allowing the issuance and reissuance of marijuana retail licenses under the social equity program. Passed into law Pettigrew Neutral Parks Bill # Short Description Status Sponsor Position ESHB 2625 (Dead) Concerning local parks funding options. Died in House Rules Eslick Neutral Planning Bill # Short Description Status Sponsor Position ESHB 2342 Aligning the timing of comprehensive plan updates required by the growth management act with the timing of shoreline master program updates required by the shoreline management act. Passed into law Fitzgibbon ESHB 2427 (SB 6453) Tackling climate change as a goal of the growth management act. Died in House Rules/Senate Local Government Duerr HB 2609 (SB 6335) Addressing climate change through growth management. Died in House Environment/Se nate Local Government Duerr SHB 2673 Concerning exemptions for infill development under the state environmental policy act. Passed into law Barkis EHB 2687 Planning for affordable housing under the growth management act. Died in House Rules Barkis HB 2780 (SSB 6536) Creating more housing options in traditionally single-family zones. Died in House Environment/Se nate Rules Macri Oppose Page 48 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 21 HB 2802 Aligning the administration of the growth management hearings board with other boards within the environmental land use and hearings office by modifying requirements pertaining to growth management hearings board membership and the duties and responsibilities of members, streamlining procedures in cases before the growth management hearings board, and allowing the use of administrative appeals judges in growth management hearings board proceedings. Died in House Environment Fitzgibbon ESSB 5522 Providing code cities with the ability to annex unincorporated areas pursuant to a jointly approved interlocal agreement with the county. Passed into law Takko ESSB 5946 Concerning the application of the state environmental policy act to temporary shelters and transitional encampments. Died in Senate Rules Nguyen SSB 6364 Incentivizing smaller, more affordable single-family home development through impact fee schedule modifications. Died in Senate Rules Zeiger Support SB 6387 Accelerating housing infrastructure investments by adjusting impact fee timelines. Died in Senate Housing Zeiger Oppose SB 6388 Concerning impact fees for multifamily and single-family housing. Died in Senate Housing Zeiger Oppose SSB 6536 (HB 2780) Creating more housing options in traditionally single-family zones. Died in Senate Rules Das Oppose ESSB 6617 Concerning accessory dwelling unit regulation. Passed into law Liias Oppose Police/ Fire/ Corrections Bill # Short Description Status Sponsor Position HB 2307 Concerning fireworks prohibitions adopted by cities or counties. Died in House Rules Fitzgibbon HB 2537 Establishing the law enforcement training standards and education board for the purpose of improving the basic law enforcement education academy and other programs and Died in House Public Safety Maycumber Page 49 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 22 curriculum hosted or designed by the criminal justice training commission. HB 2560 Concerning basic law enforcement training. Died in House Appropriations Maycumber HB 2735 Allowing limited authority officers to issue infractions for violations detected through automated traffic safety and school bus safety cameras. Died in House Public Safety Springer Support SHB 2789 (SSB 6527) Collecting information regarding police use of deadly force. Died in House Rules Lovick SB 6316 Prohibiting the consideration of the number of citations for traffic infractions issued by a law enforcement officer in the performance review of the officer. Died in Senate Rules Holy Oppose SSB 6570 Concerning law enforcement officer mental health and wellness. Passed into law King SSB 6585 Requiring county jails to use medication-assisted treatment. Died in Senate Ways & Means Zeiger Support Public Records Bill # Short Description Status Sponsor Position 2SHB 1888 Protecting employee information from public disclosure. Passed into law Hudgins Support SHB 2484 Concerning sunshine committee recommendations regarding juveniles. Died in House Rules Van Werven SB 6543 Concerning penalties against agencies which subsequently discover and produce additional responsive records after the close of an initial public records production. Died in House State Gov Short Support Public Works Bill # Short Description Status Sponsor Position HB 2507 Addressing illicit discharges of wastewater pollution. Died in House Environment Irwin Page 50 of 75 Gordon Thomas Honeywell Governmental Affairs End of Session Report 23 ESHB 2565 Concerning the labeling of disposable wipes products. Passed into law Fitzgibbon ESHB 2713 Encouraging compost procurement and use. Passed into law Walen Transportation Revenue Bill # Short Description Status Sponsor Position HB 2362 (SB 6652) Addressing local transportation revenue options. Died in House/Senate Transportation Ramos Support HB 2913 Concerning transportation revenue. Died in House Transportation Fey SB 6041 Dedicating the state sales tax on motor vehicles to transportation improvements. Died in Senate Ways & Means Braun SSB 6586 Implementing a per mile charge on electric and hybrid vehicles. Died in Senate Rules Saldana o Page 51 of 75 AGENDA REPORT FOR: City Council May 6, 2020 TO: Dave Zabell, City Manager Rick White, Director Community & Economic Development Remote Workshop Meeting: 5/11/20 FROM: Jacob Gonzalez, Senior Planner Community & Economic Development SUBJECT: Comprehensive Plan Environmental Impact Statement (EIS) Update I. REFERENCE(S): Summary of EIS Alternatives II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: As part of the ongoing Comprehensive Planning update, staff and consultants are preparing to release the Non-Project Draft Environmental Impact Statement (EIS). The EIS is a required document under the State Environmental Protection Act (SEPA) process that evaluates the possible impacts of a proposed action. Several different ways of achieving the goal must be explored and contrasted before a final alternative is chosen. The EIS alternatives provide a framework for analyzing impacts and making comparisons among different land use options. The EIS discusses the current state of the City and presents two action and one no- action alternative for the future of the City, and analyzes expected changes under each alternative. During the fall of 2018, the City (Lead Agency) sought agency and public comment on the proposed scope of the Draft EIS. Over thirty comments were received and used to develop and refine proposed alternatives of the Urban Growth Area expansion, Page 52 of 75 specifically Alternative No. 3. The following alternatives were proposed: 1. No Action; No UGA Expansion 2. Alternative No. 2; Traditional Growth Target (~4,800 acres) 3. Alternative No. 3; Compact Growth Target (~3,500 acres) The EIS document itself covers a variety of measures including: • Environment • Surface Water • Plants and Animals • Land Use • Health (Environmental) • Shoreline Use • Population, Housing and Employment • Parks and Recreation • Heritage Conservation V. DISCUSSION: The public release of the Non-Project EIS is the beginning of the agency and public comment process, along with the development of the formal Urban Growth Area application to the Franklin County Planning Commission and Board of Commissioners. As Council is aware - per the Growth Management Act - the Franklin County Commissioners have final decision making-authority on the Urban Growth area boundaries. An updated schedule of target dates and deliverables is below: Target Date Item / Deliverable May 15, 2020 Issue Draft EIS; Available for Agency/Public Comment May 21, 2020 Urban Growth Area & Comprehensive Plan Update; Pasco Planning Commission June 15, 2020 Draft EIS Comment Period Ends June 22, 2020 Special Council Meeting; Approval (Resolution) of Preferred Urban Growth Area June 23, 2020 Urban Growth Area application submittal to Franklin County August 3, 2020 Issue Final EIS August 20, 2020 Public Hearing and Recommendation at the Pasco Planning Commission September 28, 2020 Public Hearing and Recommendation at the Pasco City Council Page 53 of 75 Table 1: Summary of Alternatives & Goals of the Growth Management Act Goals (RCW 36.70A.020) Alternative 1: No Action Alternative 2 Alternative 3 Urban Growth: Encourage development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner. Least future growth in the City. Dispersed future growth throughout the city and low rise pattern. Focused growth within the UGA. Focused growth within the UGA with higher density. Reduce Sprawl: Reduce inappropriate conversion of undeveloped land into sprawling, low-density development. Dispersed land development patterns that would exceed the UGA to accommodate growth, added sprawl. Growth within the UGA, but of suburban nature will result in sprawl. Concentrated and compact growth within the UGA, planned areas would reduce sprawl. Transportation: Encourage efficient multi- modal transportation systems based on regional priorities and coordinated with the City Plan. Retains current Transportation plans with limited improvements. Adds new transportation improvements to improve connectivity and street design that supports urban environment. Adds new transportation improvements to improve connectivity and street design that supports urban environment. Adds multi-modal travel options. Housing: Encourage the availability of affordable housing to all economic segments of the population, promote a variety of residential densities and housing types, and encourage preservation of existing housing stock. Housing not adequate to meet the 20-year demand. Disbursed and low rise pattern of housing development. Housing meets the 20-year demand with limited housing types. Housing meets the 20-year demand with a variety of housing types and residential densities. Page 54 of 75 Goals (RCW 36.70A.020) Alternative 1: No Action Alternative 2 Alternative 3 Economic Development: Encourage economic development consistent with adopted Plans, promote economic opportunity for all citizens, especially for the unemployed and the disadvantaged, and encourage growth in areas experiencing insufficient economic growth, all within the capacity of the state’s natural resources, public services and public facilities. Current economic development trends continue. Employment to occur in the existing commercial and industrial areas. Economic opportunities are identified in the plan. Some employment will occur in the limited commercial areas. Economic opportunities are identified in the plan. Additional commercial and mixed-use areas will accommodate more employment. Open Space and Recreation: Encourage the retention of open space and development of recreation opportunities, conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks. Maintains existing parks and Natural Open Space. Recreation opportunities will be provided based on the Parks and Recreation’s adopted Level of Service. Maintains existing parks and natural open space and adds additional park land to serve future growth. Maintains existing parks and natural open space and adds additional park land to serve future growth. Environment: Protect the environment and enhance the City’s high quality of life, including air and water quality, and the availability of water. Environmental qualities are protected based on the current regulations and development pattern. A sprawl type growth will involve more land for development, resulting in higher vehicular traffic that could negatively impact the air quality. Environmental qualities are protected based on the current regulations and development pattern. A low density growth pattern will involve more land for development, resulting in higher vehicular traffic that could negatively impact the air quality. Environmental qualities are protected based on the current regulations and development pattern. A higher density development will involve less land, reduce vehicular traffic, and will reduce impact to air quality and ozone. Page 55 of 75 Goals (RCW 36.70A.020) Alternative 1: No Action Alternative 2 Alternative 3 Public Facilities and Service. Adequate public facilities to serve the development. Public facilities continue to serve the current development pattern. Additional public facilities will be required in certain areas for urban development. Additional public facilities will be required in certain areas for urban development. Public facilities will be more efficient due to the more densely planned development pattern. Historic Preservation. Identify and encourage the preservation of lands, sites and structures that have historical or archaeological significance. Historical or archaeologically significant sites or structures are protected under the current regulations during construction phase. Historical or archaeologically significant sites or structures are protected in the planning phase, and also under the current regulations during construction phase. Historical or archaeologically significant sites or structures are protected in the planning phase, and also under the current regulations during construction phase. Page 56 of 75 AGENDA REPORT FOR: City Council May 6, 2020 TO: Dave Zabell, City Manager Remote Workshop Meeting: 5/11/20 FROM: Zach Ratkai, Director Administrative & Community Services SUBJECT: Administrative and Community Services - Reorganization I. REFERENCE(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion and consideration of request III. FISCAL IMPACT: Approximate budget savings: $230,000 IV. HISTORY AND FACTS BRIEF: Over the past year, the Administrative and Community Services (ACS) Department has been working on a reorganization plan of the staffing for the Parks, Forestry, and Facilities Division in order to meet the rising year round need for staff support of the City's growing inventory of parks and facilities. This plan reduces the number of seasonal employees historically hired during the peak growing season by converting a portion of those dollars to seven (7) full time employees. This proposed s hift in resources right-sizes staffing capabilities with the needs of the current inventory and complexity of parks, publicly owned forestry, boulevards and open space maintained by the department as the system has evolved over the past several years. The seven FTEs being created from a portion of the seasonal positions are as follows: - Five (5) Groundsman II (mid-level) positions - Two (2) Groundsman I (entry-level) positions The change in staff configuration will result in more efficient maintenance of current assets, along with enhanced capabilities to address one-time issues that may be encountered in a park or city facility. V. DISCUSSION: Page 57 of 75 Financially, the result of the transition and reorganization of the Parks, Forestry, and Facilities Division of the ACS Department will require no additional overall general fund budget increase, and in fact is projected to lessen costs immediately and over the foreseeable future. Therefore, rather than a budget amendment, this is a request to increase the "headcount" for full time City staff. Page 58 of 75 AGENDA REPORT FOR: City Council May 6, 2020 TO: Dave Zabell, City Manager Remote Workshop Meeting: 5/11/20 FROM: Steve Worley, Director Public Works SUBJECT: Professional Services Agreement - PACE Engineering, PWRF Facility Plan and IPS - Amendment No. 6 I. REFERENCE(S): PMC 3.55, Purchasing Amendment No. 6 to Professional Services Agreement (PSA) II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Combined Projects Amount IPS Facility Plan Original PSA $977,632.00 $162,640 $814,992 Amendment No. 1 0 0 0 Amendment No. 2 $47,380.00 $47,380.00 0 Amendment No. 3 $61,432.65 $9,844.52 $51,588.13 Amendment No. 4 0 0 0 Amendment No. 5 $87,108.20 $87,108.20 0 Amendment No. 6 (Proposed) $66,149.51 $16,992.83 $49,156.68 Revsed Total $1,239,702.36 $323,965.55 $915,736.81 All costs associated with this Agreement are funded through the $1.5M HAEIFAC Loan previously awarded to the City. IV. HISTORY AND FACTS BRIEF: The scope of the Agreement with PACE Engineering provided for the development of a Capital Facilities Plan and Engineering Report relating to the Process Water Page 59 of 75 Treatment Facility (PWRF) and design for the replacement of the Irrigation Pump Station (IPS). The IPS is a key element to the operation of the PWRF, pumping pretreated water from the PWRF out to the 16 farm circles for final treatment/disposal. The current IPS is beyond its useful life, has experienced an increasing number of major emergency repairs in recent years and is considered unreliable. The need to upgrade the IPS was identified early on; hence the design of it's replacement was performed simultaneously with the overall Capital Facility Plan, under one PSA. This amendment will pay for out of scope services authorized to respond to a second iteration of comments on the Department of Ecology's review of the Draft PWRF Facilities Plan, additional Coordination Meetings with City staff, additional Design Engineering, revisions to the IPS construction drawings and additional Construction Engineering Services not previously anticipated. The Scope of Work for Amendment No. 6 is attached. Council approved the Agreement with PACE Engineering on August 21, 2017, in the amount of $977,632.00. Subsequent amendments have been approved consistent with the City adopted purchasing policy. The three significant amendments include: Amendment #2 - necessary to evaluate an alternate piping alignment to supply effluent from the 115 MG pond to the Irrigation Pump Station. Amendment #3 - needed to capture out of scope services incurred in the design phase for the IPS Pump Station Improvements. Amendment #5 - allow for limited construction management services to be provided by PACE during the bid and construction phases of the project Construction of the IPS is underway with Apollo, Inc. and is currently scheduled to be completed in Fall 2020. V. DISCUSSION: Staff recommends expanding the scope of work with PACE Engineering for this project. Amendment No. 6 has been negotiated in the amount of $66,149.51. Page 60 of 75 Page 61 of 75 \ |._Y'ig'«'IAl ';H.¥iLIfnf EXHIBIT A Page 62 of 75 Page 63 of 75 QM Engineers ';P;-:r'.1s-rs 3 Surveyors 4 I >’r:'n»u: /9 .‘;.1 Enginaanng Ssrvlces bompzn; additional services.Further,we would reprioritize our schedules in an attempt to meet the Ecology imposed deadline.Per our original agreement,responding to this second iteration of comments would be billed at a time and materials basis.PACE proceeded as instructed to respond and revise the report. During this timeframe,(November 12,‘2019 to November 29,2019),the City received additional -review comments from Ecology Hydrogeologist,Lyn Doremus,to the Hydrogeologic Study (Chapter 2 of the final document).On or about November 23,"2019,the City received the additional comments from Eco|ogy’s Hydrogeologist to include in the Capital Facilities Plan/Engineering Report but with one additional request to provide a stand alone Hydrogeologic Report separate from what was included in the Capital Facilities Plan. Allthis additional work associated with the second Ecology submittal was completed and the amended final document submitted to Ecology for approval.Please note,the City received approval of the final plan from Ecology on December 16,2019 in time to secure the ECY $1.5M funding request. LEVEL OF EFFORT ESTIMATE AMENDMENT#6 The following summarizes the additional effort and cost to address the second iteration of Ecology comments discussed above. TASK #1 —ADDRESS 2"”ROUND OF ECOLOGY COMMENTS Capital Facilities Plan (CES $16,800) Chapter 1 -Prepare responses to Ecology comments on the Capital Facility Plan,Land Treatment System Assessment (Section 1)provided to CES,November 12,2019,and provide the responses to PACE.Make update modifications to Section1 based on our response to Ecology comments and provide the updated Section 1 to PACE in electronicform.The following limitations contained in the original scope of work were exceeded: -Updating Section 1 required significant rework of nutrient and water balances and related calculations,with large amounts of time conducting research to address Ecology's comments.Significant effort was required and CES discussed the nature and effort required with PACE to gain additional budget authorization. -Formal,extended meetings,via phone or in person,or additional fo|low—upresponses were ‘required. -The prepared responses and updated Section 1 were submitted electronically. Hydrogeologic Study (Jacobs $11,249.76) Chapter 2 —Responding to Ecology review comments for hydrogeologic study from both Diana Washington and Lyn Doremus.Comments were issued independently.This work included coordinating with Ecology reviewers,additional research and revisions to Chapter 2 delivered on December 9,2019 and revisionstoChapter 2 and preparing independent Hydrogeologic study delivered on December30,2019.~ ‘ Capital Facilities Plan ($17,069.00) Chapter 3 through 14 -Additional services were provided to address 2”°"round of Ecology review comments for the Capital Facilities Plan.Ecology issued 55 comments in their 2”“review.This work included preparing review response matrix,subconsultant coordination and oversight,preparing Page 64 of 75 Engineers ‘;'°"fe':S'.;rve‘,'o. Page 65 of 75 Page 66 of 75 Page 67 of 75 AGENDA REPORT FOR: City Council May 6, 2020 TO: Dave Zabell, City Manager Remote Workshop Meeting: 5/11/20 FROM: Steve Worley, Director Public Works SUBJECT: Professional Services Agreement - PACE Engineering, Columbia East Force Main & Pump Station - Amendment No. 4 I. REFERENCE(S): PMC 3.55, Purchasing Amendment No. 4 to Professional Services Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Original Agreement $559,393.20 Amendment No. 1 $26,709.80 Amendment No. 2 $41,849.00 Amendment No. 3 $39,136.13 Amendment No. 4 $83,020.00 (Proposed) Revised Total $750,108.13 Costs associated with this Agreement 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 of the Columbia East Force Main and Pump Page 68 of 75 Station project in early April of 2018. The proposed design included: 1. The Columbia East Lift Station: completed construction in 2019. 2. The Columbia East Force Main: a 5-mile force main extending from the Columbia East Lift Station to the City’s Process Water Reuse Facility (PWRF), located within easements on private property and City/County public rights-of-way The Columbia East Force Main project remains a high priority project for the City of Pasco and its stakeholders. The construction of this pipeline will allow, primarily, the redirection of Grimmway’s carrot processing effluent away from the Municipal Wastewater Treatment Plant (WWTP) to the PWRF. This redirection of Grimmway’s discharge reclaiming WWTP, at relief the provides PWRF the to capacity approximately 1.2 million gallons per day during the peak carrot season. Acquisition for of the necessary easements has been challenging. Negotiations easements with some of the property owners along the originally proposed force main alignment were unsuccessful resulting in the need to change alignments a couple times and thus increased project costs due to: • Additional survey • Design engineering • Environmental compliance rework with each alignment modification • Prolonged easement negotiation efforts, in some cases including additional survey documentation. • Additional design revision plans to eliminate one of the parallel force mains and support to allow for construction engineering during bidding and construction of the project. 4 attached. is Council No. The for Work of Scope approved Amendment the Professional Services Agreement with PACE on April 16, 2018. Three subsequent amendments have been approved by staff: 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 the force main. Amendment #3 - 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 Page 69 of 75 V. DISCUSSION: Staff recommends approval of the expanded scope of work with PACE Engineering for this project as described in proposed Amendment No. 4 along with a corresponding increase in cost in the amount of $83,020.00. Page 70 of 75 Page 71 of 75 .“l'g~.TIP:I “iuw.1, 13XH_1BA Page 72 of 75 "‘|.'\rn :l'IIyy‘Engineers Pianners j 5.;P/eycrs Page 73 of 75 Page 74 of 75 Page 75 of 75