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HomeMy WebLinkAboutFranklin County - Disbursement Agreement for Use of .09 FundsDISBURSEMENT AGREEMENT FOR USE OF 0.09 FUNDS This Agreement, between Franklin County (hereinafter "County"), and the City of Pasco (hereinafter "Recipient"), shall be effective upon execution by both parties. WHEREAS, the County adopted Resolution 2016-211 regarding economic development and the distribution of certain funds received from the State of Washington for the financing of certain "public facilities [projects] serving economic development purposes" as contemplated by State statute (RCW 82.14.370); and, WHEREAS, the County and the Recipient are authorized, including under Chapter 39.34 of the Revised Code of Washington, to contract with each other and other public agencies in order to effectively and efficiently operate, administer, and carry out their programs and public projects; and, WHEREAS, the Recipient intends to: Improve Pretreatment at the Process Water Reuse Facility as provided in the application attached and incorporated herein to this agreement as Exhibit A. WHEREAS, the above constitute the "Project"; and, WHEREAS, the Project will upgrade the Recipient's Process Wastewater Reuse Facility that provides wastewater handling to six major industrial companies and these improvements will help retain those companies; and, WHEREAS, the Recipient has requested $500,000.00 for the Project. NOW THEREFORE, in consideration of the mutual covenants, conditions, and terms contained herein, the County and the Recipient mutually agree to the following: 1. Based on the Recipient's request, the County agrees to reimburse the Recipient for up to $500,000.00 of qualified direct costs incurred by the Recipient for the Project after the execution of this Agreement; contingent upon (i) such funds being less than the amount allocated to the Recipient, and (ii) that each reimbursement is consistent with the County's Policy. 2. The Recipient represents that the use of revenues from the Fund for the Project is consistent with RCW 82.14.370. 3. The Recipient agrees to use all funds allocated by this Agreement solely for the purpose of financing the Project and warrants that all expenditures by the Recipient for which it seeks reimbursement will comply with RCW 82.14.370. 4. The parties agree that funds will be disbursed only as reimbursement for actual, direct costs incurred by the Recipient in connection with the Project. 5. The Recipient shall invoice the County every ninety (90) days after the effective date of this Agreement, identifying all Project costs incurred by the Recipient during the prior quarter that are eligible for and for which reimbursement is sought. All invoices shall be mailed to the County at the following address: City of Pasco/ Process Wastewater Reuse Facility Pretreatment Upgrade Page 1 of 3 Franklin County Commissioners Office ATTN: Keith Johnson, Administrator 1016 N. 4th Ave Pasco, WA 99301 6. The Recipient shall not hold the County liable for any delay in disbursements, but the County agrees to use its best efforts to make appropriate disbursement payments to the Recipient in a reasonably timely fashion. 7 . The Recipient shall be responsible for establishing policies for implementing this Agreement, monitoring progress of the Project, and monitoring the fulfillment of the Parties' responsibilities under the Agreement. In addition to other responsibilities set forth in this Agreement, the Recipient is responsible for following applicable bid and prevailing wage law policies and procedures when awarding bids for the Project contemplated by this Agreement. 8. The Recipient agrees to provide the County with a quarterly report along with each invoice outlining the status of the Project, including a spreadsheet detailing all costs being reimbursed by the County. 9. If funds are applied by the Recipient toward non-eligible expenditures, the County may cease all disbursements and the Recipient shall repay to the County all monies inappropriately expended. 10. The records and documents with respect to all matters covered by this Agreement shall be subject to inspection by the parties during the term of this Agreement and for three years after its termination. 11. It is not the intention that a separate legal entity be established with respect to the Project, nor is the joint acquisition, holding, or disposing of real or personal property anticipated. 12. The Recipient agrees to indemnify the County from and against any claims, actions, losses, costs, penalties, damages, attorneys' fees, and all other liabilities and costs of defense of any nature arising out of the County's agreement to disburse funds under this Agreement. 13. The Recipient shall not have the right to assign the rights under this Agreement nor to terminate its obligations hereunder without first securing the written consent of the County. 14. The term of this Agreement shall begin when executed by both parties, and shall expire on December 31, 2021. The Recipient shall complete and request reimbursement for all Project work eligible for reimbursement by the County under the terms and conditions of this Agreement no later than the expiration date. 15. This Agreement contains the entire, complete, and integrated statement of each and every term agreed-to by and between the Recipient and the County, and this Agreement supersedes any and all prior written and unwritten agreements and understandings pertaining to the Project. City of Pasco/ Process Wastewater Reuse Facility Pretreatment Upgrade Page 2 of 3 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date signed below. ~ CITY OF PASCO Clint Didier, Commission Chairman Date: Date: 1/u Ja;rz 1 i 1 ATTEST: ATTEST: Ma .tow L-- Karen Milham, Clerk to the Board Debra Barham, City Clerk APPROVED AS TO FORM: Chief Deputy Prosecuting Attorney City of Pasco/ Process Wastewater Reuse Facility Pretreatment Upgrade Page 3 of 3 n/a n/a EXHIBIT A: CITY OF PASCO APPLICATION City of Pasco/ Process Wastewater Reuse Facility Pretreatment Upgrade Exhibit A FRANKLIN COUNTY ECONOMIC DEVELOPMENT PROGRAM APPLICATION Organization: City of Pasco, Department of Public Works Contact Person: Steve M. Worley, Director Telephone: (509) 543-5738 Address: 525 North 3rd Avenue; Pasco WA 99301 Pro ject Title: PWRF Pretreatment Improvements Project Pro ject Descri ption: The City of Pasco (City) requests $500,000 to assist with the design of Improvements of the Process Water Reuse Facility (PWRF), which would include Facility Modifications & Rehabilitation and consists of several phases. The purpose of these improvements is to maintain its economic competitiveness and remain in compliance with environmental regulations. This, in turn, allows for the imminent implementation of the PWRF expansion plans that will create and retain jobs in our largest employment sector. Using funds from Franklin County, the Washington State Department of Ecology, contributions from project users, and City Capital Reserve Funds, the City will design and construct a series of improvements that currently include, but are not limited to: additional winter storage pond(s), additional screens and enhanced treatment, amongst others. All these upgrades are for the purpose of increasing the capacity to treat process water at the facility. This facility upgrade and expansion is part of an overall effort to provide reliable service to many existing processors and prepare for new processors to come to the region . The City's and Processor's commitment to these improvements is evident in the level of investment and tenacity shown through the work performed to date, which includes the following Capital Improvement Projects associated with entire PWRF system: • Foster Wells force main: A 2.5 mile redundant 20" HDPE force main connecting the Foster wells lift station and the PWRF facility. Status: construction completed. Funding: Locally funded. $4 Million. • Columbia East Pum p Station: A pump station located at the intersection of Commercial Ave and Pasco- Kahlotus Highway. Status: construction completed. Funding: 2016 Washington State Capital Budget appropriation (administered by Washington State Department of Commerce), Franklin County Economic development grant and local funds. $3.5 Million. • Columbia East Force Main: A companion project to the aforementioned pump station. This project consists of a 20-inch HDPE dual force main connecting Columbia East Pump Station and the PWRF. Status: Design 95%, right-of-way acquisition underway. Construction is expected to begin in Fall 2020. Funding: U.S. Economic Development Administration (EDA) grant and local funds. $11 Million. • Irrigation Pum p Station: replacement of the existing pump station directing flows to the farm fields for land application (final treatment and disposal). Status: Construction underway. Construction completion is anticipated in late Fall 2020. Funding: Locally funded . $8.8 Million. Additionally City of Pasco has pursued and recently completed the acquisition of one additional farm circle from the Bureau of Reclamation for the expansion of the land treatment system. After completion of the Facility Plan for the PWRF, City of Pasco also commissioned a Value Engineering Study. For this study, additional, more exhaustive flow and constituent data of the wastewater received, treated and disposed of through the facility was analyzed . This study is instrumental in determining the best set of improvements to implement at the facility, with regards to, both, capital investment and Operations and Maintenance costs through the lifecycle ofthe proposed improvements. Current project scope is aligned with the Facility Plan recommendations. The results of the VE study suggest higher level of treatment will be required to meet the project objectives. The City is currently exploring a set of additional alternatives to be implemented instead of, or jointly with, the planned facility improvements; such as further expansion of the land treatment system, or a treatment plant with biogas generation. The final alternative may result in additional project costs. It is the City's intention to pursue funding partnerships to alleviate the burden of the ratepayers for this system . Pro ject Status: Please check one. Project is Conceptual □ Project is in Planning IZl Project is in Engineering □ Project is Ready to Bid □ Pro ject Schedule: Design Complete: December 2021 Construction Start: April 2022 Completion Date: December 2024 Private Investment: The funds listed below from private investors are funds used towards improvements to their existing processing plants. Machinery & Equipment: $10,000,000.00 Structures/Land: $8,000,000 .00 Other: $1,000,000 .00 Descri ption of Pro ject Fundin g: Describe the need for 0.09 funding and how that funding will leverage other funds. The City is seeking funding partners in the form of grants and low interest loans to fund the final engineering and construction phases of this project. The City has successfully assembled the following funding partners and cost allocation; Public Works Board awarded $1M pre-construction (i.e . "design") loan Department of Ecology Water Quality expecting formal award of $1.SM pre-construction loan in 2020 City Revenue Bond issued in 2020 for l.SM for this project City will pursue $10M for construction loan from the Public Works Board City is pursuing State Legislature contributions for the Construction of the project The rest of the cost will be covered by a future revenue bond issued by the City and paid by the Food Processors/rate payers discharging to the industrial facility The need for the 0 .09 funding is substantial to this project. Without it the city would have to increase both the cash contributions and user rates and taxes on the processing community. That could create a hardship and severely diminish Pasco and Franklin County's competitiveness to retain and recruit food processors. In addition, lack of funding could put the city and processors at increased risk of violating state and federal environmental regulations, thereby jeopardizing eligibility for required permits. Pro ject Bud get: Provide an estimate of the project costs. The expenditure areas are suggestions; please feel free to use designations more appropriate to your project. Project Expenditures Planning/Engineering Land Acquisition Construction Machinery/Equipment Other Total Notes: *Planned Total Grant Project Request Cost 4,500,000 500,000 25,000,000 29,500,000 500,000 State (Public IState (WA Capital Public Works Board IState dept. State (Revenue bond Loan) of Ecology) Budget to be paid by processors) 1,000,000 1,500,000 1,500,000 *10,000,000 *5,000,000 *10,000,000 11,000,000 1,500,000 5,000,000 11,500,000 Focusing on the proposed improvements for the facility the City would approach the improvements in a phased manner. The total project cost is currently estimated at approximately $30M . Total cost includes design, permitting and construction. There is no land acquisition nor machinery purchases in this case. General Pro ject Information: Describe the nature of the public/private investment: Private sector investment will be made by the City's primary customers to the project through cash contributions, and potentially in-kind contributions of additional spray field acreage. The processors understand the need and value of both private and public-sector investment, and are engaged partners in the design, construction and ultimate operation of the project. The City's cash contributions are coming from state and federal grants and loans. How will the project compliment the County's existing economic development strategy? The project is consistent with and supports the following Franklin County Economic Development Policies and Objectives: Goal 1: Encourage economic development consistent with adopted comprehensive plans. Goal 2: Enhance economic and job opportunities for all citizens Goal 3: Enhance the existing agricultural economic base through diversification. Goal 4: Encourage the Economic Diversification of the County and its municipalities as well as strengthening existing business and industries to add to the diversity of economic opportunity and employment. Goal 5: Pursue an active and aggressive recruitment program to induce a variety of commercial and industrial enterprises to settle in the County. Goal 6: Employment Centers. Encourage the growth of readily-available large planned employment center development sites, properly zoned and serviced within infrastructure. Goal 8: Infrastructure: Assure that adequate infrastructure is provided to accommodate economic growth. Goal 11: Environment: Maintain the environmental quality of life so that Franklin County is a preferred place to work. Goal 13: Coordination: Coordinate the economic development element of the Comprehensive Plan with other portions of the Comprehensive Plan and Economic Development Plan so that a clear and consistent economic policy is followed. The development of the Pasco PWRF has been the largest manufacturing job creator over the last 25 years in Franklin County. This has occurred through collaboration with the Port of Pasco and public/private partnerships with the food processing industry. The Port initially purchased land for industrial subdivisions and the City purchased land for the application of the "gray water" from the food processing industry and operation of the water disposal system. With one of the lowest manufacturing or primary job ratios in Washington, support of this manufacturing and processing industry is key to the future of the Tri-Cities. The success of the Processing Center shows the level of cooperation between the food and food processing industries and local and state governments. It is also a clear example of effective project management by administrative staff and elected officials, particularly as elected officials have designated the appropriate and strategic funding efforts towards leveraging public investments with private investments in this successful industrial cluster. The City of Pasco continues to devote capital improvement monies through a strategic and long-term investment policy that enhances this regional success in food and transportation related industries. The City's capability and capacity to administer and implement a successful economic development program for creating jobs and attracting private investment is exemplified in the partnership the City has with the Port of Pasco and the Tri-City Industrial Development Council (TRIDEC).Through this partnership (which is ongoing) and the construction and management of the Pasco Processing Center and the Process Water Reuse Facility (PWRF) the City has been very successful in attracting private investment. The current grant application will enable the City to further strengthen its capacity to attract private sector investment and jobs. The construction of the proposed project to be funded in part by this grant will further strengthen the City's capacity to attract private investments by providing a public service (process water disposal) that is critical to the needs of the food processing industry. The City's economic development partner, TRI DEC, has recently entered into an agreement with the Hong Kong Trade Council to help promote and market agricultural products from the Pasco area. This new marketing initiative will support and expand the City's capacity to attract additional private sector investment. This new marketing program will support the public investment in the proposed project. Will this project compliment existing infrastructure? If yes, how? Yes, the project helps to preserve wastewater capacity for the city's residents and businesses. Preserves approx. 650mg to lbg of wastewater, and up to 650,000 pounds of nitrogen from entering into Columbia River; no added fertilizer required . Will this project create demand for additional infrastructure? Yes. The project is part of a series of capital improvements and capacity expansion, which are already underway, that will be necessary to continue serving the needs of this industry. However, the demand and timing of each phase is also dependent on, and responsive to, the growth projections of existing and potential future processors, while sustaining adequate capacity at the city's wastewater treatment facilities for other commercial and residential growth. Please describe any unique economic development opportunities the project will provide? The City of Pasco and surrounding farmlands contain a strong processing cluster located on both sides of SR 395 and the north side of SR 12. This area contains an estimated $130 million worth of public and private investment and currently contains over 1,100 jobs engaged in the primary industry of food processing and exportation. The replacement of existing aging features and expansion of the processing capabilities will leverage the existing public and private advantages for this industry sector and allow its economic support of the region to continue.