HomeMy WebLinkAbout2021.03.08 Council Workshop Packet
AGENDA
City Council Workshop Meeting
7:00 PM - Monday, March 8, 2021
GoToWebinar
Page
1. REMOTE MEETING INSTRUCTIONS - The Pasco City Council Workshops
are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in
Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on
the City’s Facebook page at www.facebook.com/cityofPasco.
Call-in information to GoToWebinar for "listen-only" mode is:
(562) 247-8422 and use access code 465-398-545.
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
4. VERBAL REPORTS FROM COUNCILMEMBERS
5. ITEMS FOR DISCUSSION
3 - 19 (a) 2020 Hanford Communities Update
20 - 27 (b) DPDA Funding Agreement Extension
28 - 70 (c) 2019 City of Pasco Financial Audit Recap
71 - 74 (d) Ordinance - Budget Adjustment for Fire Equipment Purchase
75 - 83 (e) Ordinance - Amending PMC Title 23 Related to SEPA
6. MISCELLANEOUS COUNCIL DISCUSSION
7. EXECUTIVE SESSION
8. ADJOURNMENT
Page 1 of 83
9. ADDITIONAL NOTES
(a) Adopted 2020-2021 Council Goals (Reference Only)
(b) REMINDERS
• Tuesday, March 9, 2021, 5:30 PM: HAPO Center
Boardroom or Conference Call (MAYOR SAUL MARTINEZ
and COUNCILMEMBER CRAIG MALONEY)
• Thursday, March 11, 7:00 PM: Ben Franklin Transit Board
Meeting – Transit Facility (COUNCILMEMBER RUBEN
ALVARADO, Rep.; COUNCILMEMBER ZAHRA ROACH,
Alt.)
• Monday, March 15, 6:00 PM: LEOFF Disability Board –
Virtual Meeting (MAYOR SAUL MARTINEZ, 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 83
AGENDA REPORT
FOR: City Council March 3, 2021
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 3/8/21
FROM: Dave Zabell, City Manager
Executive
SUBJECT: 2020 Hanford Communities Update
I. REFERENCE(S):
PowerPoint Presentation
DHanford Communities Issue Agenda for 2021
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
None
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
Hanford Communities was formed and exists to facilitate a coordinated local
government Nuclear Hanford regarding decision in involvement making
Reservation's environmental contamination, remediation, waste management,
emergency response, and work force, as well as site transition issues on
issues affecting the surrounding jurisdictions. The organization advocates for
increased public awareness and involvement in Hanford's cleanup issues.
Board members interact with the U.S. Department of Energy (DOE), the
Washington State Department of Ecology, the U.S. Department of
Environmental Protection Agency (EPA) and others to further the interests of
the Tri-Cities region. Hanford Communities member agencies consist of the
Cities of Kennewick, Pasco, Richland and We st Richland, Benton and Franklin
Counties and the Port of Benton.
Councilmember Roach serves as the Pasco City Council representative on the
Hanford Communities Governing Board.
Page 3 of 83
V. DISCUSSION:
Hanford Communities Executive Director David Reeploeg, will provide the
annual Hanford Communities report to Council.
Page 4 of 83
David Reeploeg, Executive Director
Pasco City Council
Annual Update
March 8, 2021Page 5 of 83
About Hanford
Communities
•Formed in 1994
•Objectives:
•Coordinate local government
involvement on Hanford issues
•Increase public awareness and
involvement in Hanford cleanup
issues
•Advocate for community priorities
re. Hanford
•Provide technical and analytical
resources to review, evaluate and
monitor conditions and policies at
HanfordPage 6 of 83
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•Governing
BoardPage 7 of 83
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•Administrative
BoardPage 8 of 83
2020 Changes
May 2020: Transition to TRIDEC
Operation
September 2020: Signed Ecology
Grant with Updated Scope of Work
New Website:
www.HanfordCommunities.org
Communications: Social Media
(Facebook/Instagram/YouTube) &
Quarterly NewslettersPage 9 of 83
2021 Outlook
•New Administration –DOE
Changes
•Gov. Jennifer Granholm –Secretary
•Dave Huizenga –Acting Secretary
•David Turk –Deputy Secretary
nominee
•Assistant Secretary for Environmental
Management –TBD
•Prioritization/Approach to Hanford
cleanup –TBD
•DOE Reorganization
•Office of Environmental Management
reports to SecretaryPage 10 of 83
2021 Outlook:
New Congress
•Sen. Patty Murray
•Energy & Water Appropriations
Subcommittee
•Sen. Maria Cantwell
•Energy & Natural Resources
Committee
•Rep. Dan Newhouse
•Energy & Water Appropriations Subcommittee
•Congressional Western Caucus Chair
•Rep. Cathy McMorris Rodgers
•Energy & Commerce Committee (Ranking)Page 11 of 83
2021 Outlook: Hanford
Site Contract Changes
•Two prime contract transitions
complete Jan. 25
•Mission Support Alliance (MSA) –to –
Hanford Mission Integration Solutions
(HMIS)
•CH2MHill Plateau Remediation
Company (CHPRC) –to –Central
Plateau Cleanup Company (CPCCo.)
•Tank Closure Contract award
canceled –will be combined with
vitrification facility operations in
future solicitationPage 12 of 83
Priorities
•2021 Issue Agenda
•High Level Waste Interpretation
•Hanford Regulatory Approach
•Direct Feed Low Activity Waste
Facility (DFLAW)
•Waste Encapsulation Storage
Facility (WESF)
•324 Building (300-296 Waste Site)
•Local Business SubcontractingPage 13 of 83
David Reeploeg
dreeploeg@hanfordcommunities.org
www.hanfordcommunities.org / @HanfordCommunitiesThank You!Page 14 of 83
1
Hanford Communities Issue Agenda for 2021
Priority Issues: Progress on HLW Interpretation, and a Regulatory
Environment that Enables Cleanup
Section I. Top Priorities
High Level Waste (HLW) Interpretation: The Hanford Communities is encouraged by a recent DOE
report which indicates that up to $210 billion could be saved, and the timeline to complete tank waste
treatment could be reduced by 10 years if the revised HLW interpretation is applied at the Hanford Site. This
science-based approach would allow DOE to manage and treat waste according to its physical characteristics
and risk, rather than simply based on where it originated. If applied at Hanford, this process would open up
disposal options other than a deep geologic repository, along with opportunities to permanently ship waste
out of Washington state. DOE should continue working with its regulators, the Tri-City community and
regional tribes to further pursue this approach.
Regulatory Environment: The Hanford Communities is very concerned that the current regulatory
environment delays rather than enables cleanup progress at Hanford, which ultimately serves to prolong risks
to the Tri-City community. DOE and its regulators should emulate successful cleanup efforts elsewhere in
the DOE complex where alignment was reached on cleanup priorities, and the appropriate use of regulatory
discretion was applied, in order to expedite cleanup progress.
Movement of Cesium/Strontium Capsules to Dry Storage: The Waste Encapsulation and Storage Facility
(WESF) in the Central Plateau holds 1,936 capsules of cesium and strontium that were removed from tank
waste and stored underwater. These capsules represent approximately one-third of the total amount of curies
at the Hanford Site. WESF was not built for permanent storage of cesium and strontium and the facility
presents a significant risk and long-term mortgage cost. The Hanford Communities support the ongoing
effort to move the capsules to dry interim storage as soon as possible.
Tank Farm Operations: Funding for tank farm operations must be adequate to prepare for waste treatment
and ensure maintenance of the aging infrastructure in a safe configuration while waste is removed from
tanks. Many of the tanks are well beyond their design life, and many single shell tanks plus at least one
double shell tank are known to have leaked. Elimination, or at least reduction of risks must continue to be a
top priority.
DOE and its regulators must also proceed with closing tanks with grout, this will prevent tank collapses and
intruder possibilities. The Hanford Communities support adding Washington to the list of states that can use
the Sec. 3116 provision to close tanks. Adequate funding is essential to support tank farm upgrades as
necessary to protect the workforce and reduce the potential for vapor exposures.
Sustained Progress on
Environmental Cleanup
Tangible progress is being made to clean up
the Hanford Site and meet the requirements of
the Tri-Party Agreement and Consent Decree.
Adequate funding must be budgeted to keep
the progress on track and not continue to
drive lifecycle costs higher.
Community Vision
The people of the Tri-Cities region have risen to
meet some of our nation’s highest priority needs,
and we are now ready to take on the challenges of
the future. We request DOE’s continued
partnership as we seek to leverage the highly-
skilled workforce and federal assets that our region
possesses to leave a legacy of economic prosperity
for all the citizens we serve.
Page 15 of 83
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Groundwater Remediation: Great progress had been made in recent years on groundwater remediation
with the completion of pump and treat facilities. However, groundwater remediation is far from complete,
and these efforts must be continued across the Hanford Site. In addition, the existing systems should be
optimized to reach their full capacity and be able to respond to emerging conditions in the tank farms or
elsewhere in the Central Plateau. This is essential to ensure the protection of the Columbia River and
prevent the migration of contamination from the Central Plateau to the River Corridor.
Sustained Cleanup Progress: The Hanford Communities believe that cleanup of the Hanford site should be
risk based and reflect the community’s concerns and priorities. It should also be cost-effective and based on
compliance with cleanup regulations utilizing the best available science, state of the art processes and
technologies. To sustain congressional support for cleanup funding, the Department of Energy’s Richland
Operations Office (RL) and the Office of River Protection (ORP) must continue to demonstrate that taxpayer
dollars are effectively managed, produce the desired results, comply with Tri-Party Agreement (TPA)
requirements and other legal commitments.
FY 2022 Hanford Budget Request: While recognizing that there are budgetary realities, the Hanford
Communities supports funding for the Hanford cleanup that adequately funds community cleanup priorities.
The TPA and Consent Decree require that DOE request adequate funding to meet legal requirements in the
President’s budget. Life-cycle cost analysis should also be provided to communicate the impacts of delaying
cleanup work due to less than required funding levels. The Hanford Communities will work with the Energy
Communities Alliance and others to request and promote sustained funding levels necessary to meet
Environmental Management program commitments. Both DOE-RL and DOE-ORP should receive adequate
funding to continue key cleanup activities. All parties need to recognize that the budget request must be
realistic and achievable.
Hanford lifecycle cleanup cost estimates released in 2019 indicate that it could require over $11 billion a year
for 60 years to complete cleanup as presently envisioned. Funding at that level is not feasible so it will be
necessary for DOE, EPA and the State of Washington to identify new strategies that will maximize cleanup
progress at realistically achievable funding levels.
Given these funding realities, the Tri-Party Agencies should actively pursue promising new technologies and
cleanup options which have the potential to expedite cleanup and reduce costs while meeting realistically
achievable cleanup goals. Additionally, adequate funding for startup and commissioning of the Direct Feed
Low Activity Waste Facility (DFLAW) is essential, and funding for technologies to pretreat and grout tank
waste for shipment to appropriate licensed facilities out of state should be supported.
Tank Waste Treatment: The Hanford Communities believe that removing waste from the tanks, stabilizing
and immobilizing the material, and putting it into safe storage to reduce risk must continue to be a high
priority for the cleanup effort. The tanks are aged and there is a possibility that there could be another leak in
a Double Shell Tank (DST) that could significantly impact available tank space. It is also imperative that the
Tank Farms are prepared to safely and reliably deliver waste feed to the WTP. Great progress is being made
at WTP with commissioning and the transition to start-up of the Direct Feed Low Activity Waste Facility
(DFLAW) and we support initiatives such as the Tank-Side Cesium Removal System (TSCR) will aid in
addressing the tank waste issues and prevent unnecessary spending to construct new tanks.
River Corridor: The Hanford Communities believe it is critical for DOE to remediate the radiological
waste site underneath the 324 Building as quickly as possible given its close proximity to the Columbia
River and the City of Richland. Continued efforts to monitor and remediate contaminant plumes must also
be a priority.
Plutonium Finishing Plant: Completion of the Plutonium Finishing Plant demolition has been a high
priority for the Hanford Communities for many years. We support the completion of stabilization of the site
and adjacent structures and continued remediation efforts in the area.
Page 16 of 83
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Legacy Facilities/High Risk Mitigation: Subsequent to the PUREX tunnel collapse additional high risk
situations have been identified as requiring mitigation. The Hanford Communities believe it is critical for
DOE to continue to proactively address the highest risks across the Hanford Site.
Tri-Party Agreement (TPA): Much of the Hanford cleanup strategy falls under the "Tri-Party Agreement"
between DOE, EPA and the State of Washington’s Department of Ecology. The Hanford Communities
strongly support the intention of the Tri-Party Agreement including changes and amendments, as
appropriate, to incorporate such issues as improved technology developments, better scientific understanding
and options for efficiencies.
The Tri-Party Agreement was entered into by the parties in May of 1989. There have been six amendments
and numerous modifications over the past thirty-one years. The Hanford Communities are concerned that
the structure of the Agreement may have outlasted its usefulness in moving toward the shared goal of
cleanup and removal of waste from the Site. Strict adherence to the Agreement has led various parties to use
its terms as a cudgel which has prevented the parties from achieving their shared goals.
Additionally, the commitments in the TPA are out of date and no longer meet the needs of local
communities.. The time is right for the Tri-Parties to reexamine the milestones in the agreement, taking into
consideration the current site conditions and prioritized risks the next decade, using realistic budget
assumptions and achievable schedules.
Hanford Workforce: The Hanford workforce is aging and it is essential to recruit and train new employees.
Hanford workers are well trained and experienced to perform these complex work activities but their safety
must be the highest priority. In order to prepare individuals for future Hanford jobs there needs to be a
concerted effort to expand STEM education from primary grades through post-secondary programs.
Apprenticeships and internships should be developed in partnership with local union programs, K-12 and
Community Colleges. As DOE and their contractors reach out to hire individuals from outside of this area we
should assist them by providing information about the quality of life of our region and communities.
Workforce should be provided back the ability to have payroll deductions that support local needs such as the
United Way.
Professional and Technical local business are being impacted by DOE contracting- We support DOE in
competing of contracts however we believe the current process has resulted in unintended consequences to
local businesses that have been a foundation of the technical and professional workforce at Hanford. ECA
and Hanford communities request that DOE does not implement this new policy at any other EM site until an
analysis has been made outlining the potential short- and long-term impacts of DOE on the community at
large. DOE should then implement a plan to ensure a smoother transition that will not unnecessarily
jeopardize the viability of local small businesses.
Infrastructure: Critical infrastructure systems including water, fire protection, sewer systems, primary
electrical power, and roads require ongoing maintenance to ensure safety and reliability. Additionally, the
focus of work to the Central Plateau and startup of operational facilities on-site creates the need for updates
and modifications of the systems to support future operations.
Page 17 of 83
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Section II. Local Priority Issues
Manhattan Project National Historical Park and B Reactor: The Hanford Communities strongly
supports efforts to grow and maximize the potential of the Manhattan Project National Historical Park at
Hanford. In particular it is critical that the B Reactor roof be replaced, and that other facility maintenance
activities and efforts to expand tour access be continued. An amendment to expand the boundary of the
park at Hanford and a funding request for infrastructure improvements is also supported, as are preservation
and restoration efforts for pre-Manhattan Project facilities located on the Hanford Site. It is important that
these facilities, archives as well as the B Reactor be made accessible to the public through the combined
efforts of the DOE and the National Parks Service.
HAMMER Training Center: Consistent and highly effective site-wide training requirements should apply
to all contractors and subcontractors. HAMMER has repeatedly demonstrated its value to meet Hanford’s
comprehensive training needs. The upcoming change in operational focus will increase the need for site-
wide training programs to ensure the safety and efficiency of workers on site. The Hanford Communities
encourage DOE to explore opportunities to continue to enhance the facility’s missions and capabilities in the
future
Economic Development and Diversification: The Hanford Communities support transferring surplus
Hanford assets, including land and excess personal property to TRIDEC/TARC to foster creation of private-
sector jobs and diversification of the regional economy. We encourage TRIDEC and DOE to put in place a
new agreement and procedure to replace the previous program. Our community seeks future missions in the
areas of clean energy, biosciences, environmental and computational sciences, grid and cybersecurity.
Waste Treatment Plant (WTP) Diesel: The Hanford Communities remains concerned about plans to burn
approximately 45,000 gallons of diesel per day at full operation of the WTP. A natural gas pipeline to
supply the Central Plateau is a much better alternative and the EIS should be completed. DOE is also
encouraged to explore opportunities to use process heat from proposed new advanced nuclear reactors
(supported by DOE’s Advanced Reactor Demonstration Program) to provide steam for the WTP as well.
Both of these options will provide substantial environmental benefits, reduce wear and tear on regional
highways, and support statewide desires to reduce carbon emissions that align with DOE’s mission.
Payment in Lieu of Taxes (PILT) In 1996, DOE entered into agreements with Benton, Franklin, and Grant
counties to provide PILT payments based on historical use of the site before the lands were expropriated by
the Manhattan Project. PILT funds are distributed by the counties to local entities including school districts,
library districts, and hospital districts, among others, to support the provision of basic public services. A new
formula for calculating Hanford PILT billings has been developed and accepted by all parties. DOE should
request funding to meet the commitment in their federal budget request. The Hanford Communities support
payment levels that are on-time, in-whole, and are otherwise consistent with the agreements.
Public Information and Involvement: In 1998, the Hanford Communities and the Washington State
Department of Ecology identified the need to more fully engage the Tri-Cities metropolitan region in the
Hanford cleanup. A program was developed to inform area residents and stimulate meaningful involvement.
The Hanford Communities recognize that this program will continue to be a high priority during 2021. It is
the goal of the Hanford Communities to renew the program and contract with the Department of Ecology for
the next state fiscal year. We also encourage DOE to refocus their outreach to the residents of the region
closest to, and most directly impacted by, the Hanford Site.
Yucca Mountain: Yucca Mountain was originally designated to receive high -level defense waste from DOE
sites around the country including Hanford’s high-level vitrified tank waste and spent nuclear fuel that has
been packaged and stored in the Canister Storage Building. It is also intended as a repository for the
commercial spent fuel which is currently being stored north of Richland near the Columbia Generating
Station. Without Yucca Mountain, Hanford will become a de -facto high level waste repository. We support
congressional funding efforts to complete necessary analysis and get Yucca Mountain open for business. Page 18 of 83
5
High Level Nuclear Waste: The Blue Ribbon Commission Recommendation to establish a new entity
dedicated solely to implement the nation’s high level waste management program is endorsed by the Hanford
Communities. The establishment of a licensed nuclear repository and an interim storage facility in Eddy
County, New Mexico, or in another community interested in hosting a site is also supported.
Local Governments as Host Communities and Service Providers: Although good relationships exist
between local area governments and local DOE offices, ports, cities and counties adjoining DOE sites are
often relegated to the subordinate role of special interest groups. It is important the DOE acknowledge that
local elected officials have authority and responsibility for services used by DOE such as sewer, water,
electricity, roads, law enforcement, and emergency response. Local elected officials also have regulatory
authority over land use planning and economic development on land adjacent to the Hanford Site. DOE-RL,
DOE-ORP and their contractors should partner with local government to make maximum use of their
capabilities. DOE must also work to address traffic congestion generated by the Hanford commute, along
with wear and tear of roads caused by activities at the Hanford Site.
Emergency Management: Whether a large brushfire, a transportation accident involving hazardous waste,
or a radioactive materials incident, emergencies at Hanford directly affect our local communities and its
citizens. Cooperation and coordination between DOE and local emergency responders is essential. DOE
provides funding for emergency management to the State of Washington and the state passes these funds on
to county emergency management agencies including Benton and Franklin counties. Funding for local
emergency preparedness necessary to coordinate with Hanford has not kept pace with inflation, and costs
such as PERS and health insurance continue to rise much faster than the available funding from DOE. The
Hanford Communities believe that DOE should increase its funding to the Benton and Franklin Emergency
Management Agencies, either through its allocation to the state or directly to the local counties.
Use of CERCLA in place of RCRA for Nuclear Waste Remediation; The Consortium for Risk Evaluation
with Stakeholder Participation (CRESP) Omnibus report suggested that using CERCLA (Superfund)
regulations in place of RCRA makes more sense for radioactive contamination. We were encouraged that state
regulators and EPA have met to explore this and other opportunities to seek solutions for management and
disposal of waste that reduces cost and improves schedules. We are concerned about the overly burdensome
regulatory and permitting processes, and an unwillingness to exercise appropriate regulatory discretion. There
are numerous examples at other sites within the DOE-EM complex where this appropriate use of regulatory
discretion has led to expedited cleanup progress. Ultimately, we hope that these and other efforts will reduce
unnecessary delays in making cleanup progress.
Page 19 of 83
AGENDA REPORT
FOR: City Council March 2, 2021
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 3/8/21
FROM: Rick White, Director
Community & Economic Development
SUBJECT: DPDA Funding Agreement Extension
I. REFERENCE(S):
2020 Funding Agreement
Proposed 2021 Funding Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Expense: Remaining $75,000 of an annual contribution $100,000 for 2021.
Program Revenue: The City receives a credit on its Utility Tax obligations as a
result Development Pasco the to Downtown annual the of contribution
Authority (DPDA) through the Main Street tax incentive provisions
in $100,000 from resulting 2021, in for $64,000 (approximately credit
contributions in 2020. Approximately the same Utility Tax credit is expected in
2022 for contributions in 2021. The balance of the funding, approximate ly
$36,000 will be funded from the Economic Development (!94) Fund.
IV. HISTORY AND FACTS BRIEF:
In January 2021, the 2020 Funding agreement for the DPDA was extended
through this year's first quarter by Council action.
Also in 2020, the effect of the COVID-19 pandemic had a negative influence on
the DPDA operations and Downtown commerce. The typical gathering events
including Cinco de Mayo, Fiery Food Festival, Christmas Tree Lighting and
Farmers Market have all been reduced in size, scale and attendance.
Page 20 of 83
DPDA COVIDon focusing the with pivoted conditions -related business
assistance. Over the past year, the DPDA Executive Director has worked
extensively on a financial clean up of the organization's books; dealing with
ramifications of the COVID-19 pandemic and had implemented a business
assistance grant program using funding from the City's CDBG - CV and
CARES sources, as well as from a financial contribution from Group Health
Northwest.
V. DISCUSSION:
Both the existing and proposed Funding Agreement for 2021 contains the
following activity requirements for the DPDA:
• Develop and adopt a new 5-year Strategic Plan;
• Organize quarterly downtown business and property owner meetings;
• Organize, finance and manage Cinco De Mayo Festival;
• Organize, finance and manage Fiery Foods Festival;
• Organize and manage the Pasco Farmers Market each Saturday from
May through October;
• Manage the operations of the Pasco Specialty Kitchen;
• Provide a scholarship grant program consistent with the DPDA’s
501(c)(3) status,
• Continue recruitment for vacant downtown business space;
• Create and maintain a Downtown Property Inventory;
• Business recruitment, development and engagement activities.
New tasks in this year's proposed Agreement include: outreach to Downtown
businesses related to the schedule and possible impacts related to the Lewis
Street Overpass project; Lewis Street Improvement Project; and Farmers
Market/Peanut Park Revitalization Project. Also, additional new tasks include:
expanded DPDA outreach to the Downtown business community (Webpage,
Podcast, Radio, Weekly Informational Emails and Flyers) and coordination of
efforts related to preparation of a Downtown Master Plan
The City has typically funded the DPDA)in two-year increments; however,
because of the effects of the COVID-19 pandemic, staff is recommending the
Funding Agreement be effective only through 2021 so the above tasks receive
further review based on public health and any applicable circumstances.
Council discussion of this approach is appreciated.
Page 21 of 83
DPDA Funding Agreement - 1
DOWNTOWN PASCO DEVELOPMENT AUTHORITY
FUNDING AGREEMENT
THIS AGREEMENT is made and entered into this ______ day of ______________ 2020,
by and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to
as “City,” and the Downtown Pasco Development Authority, a non-profit Washington
Corporation, hereinafter referred to as “DPDA.”
WHEREAS, the City Council desires to foster revitalization of the downtown business
area and created the Downtown Pasco Development Authority (DPDA) in December 2010 under
Ordinance No. 3985, with the expectation of providing a three-year funding commitment to permit
the new agency to establish operations and demonstrate its ability to fulfill the revitalization goals
enunciated in Ordinance No. 3985 and the DPDA Charter; and
WHEREAS, DPDA has received a certificate of incorporation from the State of
Washington as a non-profit corporation; and
WHEREAS, DPDA has organized and developed operating procedures, hired an
executive director, reinitiated public events in Downtown Pasco (Cinco de Mayo and the Fiery
Foods Festival), undertaken management of the Pasco Farmers Market and Pasco Commercial
Kitchen, became a 501(c) (3) organization, became a certified Washington State Main Street
organization, conducted several business education classes and Downtown clean-up events, and
participated in the development of a Peanuts Park and Pasco Farmers Market refurbishment, and
(with City financial assistance) completed a 5 year Strategic Work Plan including website revisions
and “branding;” and
WHEREAS, DPDA tasks for 2020 include:
1. Develop and adopt a new 5-year Strategic Plan;
2. Organize quarterly downtown business and property owner meetings:
3. Organize, finance and manage Cinco De Mayo Festival;
4. Organize, finance and manage Fiery Foods Festival;
5. Organize and manage the Pasco Farmers Market each Saturday from May through October;
6. Manage the operations of the Pasco Specialty Kitchen;
7. Provide a scholarship grant program consistent with the DPDA’s 501(c)(3) status,
8. Continue recruitment for vacant downtown business space;
9. Create and maintain a Downtown Property Inventory;
10. Business recruitment, development and engagement activities.
WHEREAS, DPDA has requested that additional City funding be made available to
develop resources to eventually reduce the amount of the City subsidy; NOW THEREFORE,
IN CONSIDERATION of the mutual covenants contained herein and other valuable
consideration, it is agreed as follows:
Section 1: DPDA Responsibilities
The DPDA shall conduct its activities and efforts that further the purpose of the DPDA as
identified in Pasco Ordinance 3985 and Article IV of its Charter to include but not be limited to:
Page 22 of 83
DPDA Funding Agreement - 2
Review of City plans and policies. The DPDA shall review existing and evolving City land
use and capital improvement plans and policies affecting the Downtown Area and advise
the city of appropriate considerations.
Façade Improvement Program. The DPDA shall provide information, applications and
professional assistance to Downtown Area property owners wishing to participate in an
approved and funded Community Development Block Grant façade program.
Promotional Events. The DPDA should conduct or implement an additional promotional
or special event in addition to Cinco de Mayo and the Fiery Foods Festival that contribute
to the success of the Downtown Area or otherwise advance the goals of the DPDA.
Financing Strategy. In collaboration with City staff and/or other professionals, the DPDA
will develop a comprehensive inventory of public and private capital and development
financing tools and incentives that may be available to foster and support its revitalization
efforts. These should include tax credits or other incentives and identification of
infrastructure and other public capital investments that may be necessary to support private
redevelopment projects.
Marketing. The DPDA shall develop a strategy to identify and promote economic vitality
of the Downtown Area including the opportunities associated with the Farmer’s Market
and Specialty Kitchen. These strategies may include: creation of a Downtown Calendar,
quarterly business meetings for Downtown businesses, restaurant recruitment for vacant or
available properties and completion of the Downtown Survey.
Farmer’s Market and Pasco Specialty Kitchen. The DPDA shall optimize the opportunities
associated with the Farmer’s Market and Specialty Kitchen to increase economic activity
and promote recognition of the Downtown. Operation of these facilities must be in
accordance with the associated lease agreement.
Reports: A formal presentation to the City Council by the DPDA board shall be given on
or before December 1 each year. The DPDA shall deliver quarterly written status reports to the
Pasco City Manager detailing the activities, accomplishments and financial status of the DPDA.
Section 2: City Responsibilities
The City of Pasco will remit to DPDA or its designated bank up to $25,000 per quarter by
the 10th day of the first month of said quarter.
Section 3: Term
This agreement shall be effective January 1, 2020 and shall expire on December 31, 2020;
provided, however, either party may terminate the agreement with at least 180 days written notice
delivered to the President of the DPDA or the Pasco City Manager. It is further provided that this
agreement is predicated on the DPDA maintaining its Main Street status for calendar year 2020,
and the City’s contribution, as described in Section 2, is deemed eligible for Main Street tax credits
by the State Department of Revenue. Should the DPDA become ineligible for Main Street tax
credits, this Agreement may be returned to the Pasco City Council for determining its continuation.
The agreement may be extended up to 24 additional months, by mutual agreement of the
parties, subject to budget authority of the city manager.
Page 23 of 83
DPDA Funding Agreement - 3
Section 4: General Provisions
For the purpose of this Agreement, time is of the essence. Failure of the DPDA to either
provide the accounting or remit disallowed funds as required herein shall constitute a breach of
this agreement. The remedies available to the City shall include but not be limited to, return of all
funds delivered to the DPDA and denial of the right of the DPDA to apply for any future funding.
In the event of a dispute regarding the enforcement, breach, default or interpretation of this
Agreement, the parties shall first meet in a good faith effort to resolve suc h dispute. In the event
the dispute cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules (MAR);
venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall
apply; and the prevailing party shall be entitled to its reasonable attorney fees and costs.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this ______, day of ______________, 2020.
CITY OF PASCO DOWNTOWN PASCO DEVELOPMENT
AUTHORITY
_______________________________ _______________________________
Dave Zabell, City Manager Gabriel Portugal, President
Page 24 of 83
DPDA Funding Agreement - 1
DOWNTOWN PASCO DEVELOPMENT AUTHORITY
FUNDING AGREEMENT
THIS AGREEMENT is made and entered into this ______ day of ______________ 2021,
by and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to
as “City,” and the Downtown Pasco Development Authority, a non-profit Washington
Corporation, hereinafter referred to as “DPDA.”
WHEREAS, the City Council desires to foster revitalization of the downtown business
area and created the Downtown Pasco Development Authority (DPDA) in December 2010 under
Ordinance No. 3985, with the expectation of providing funding commitments to permit the new
agency to establish operations and demonstrate its ability to fulfill the revitalization goals
enunciated in Ordinance No. 3985 and the DPDA Charter; and
WHEREAS, DPDA has received a certificate of incorporation from the State of
Washington as a non-profit corporation; and
WHEREAS, DPDA has organized and developed operating procedures, hired an
executive director, reinitiated public events in Downtown Pasco (Cinco de Mayo and the Fiery
Foods Festival), undertaken management of the Pasco Farmers Market and Pasco Commercial
Kitchen, became a 501(c) (3) organization, became a certified Washington State Main Street
organization, conducted several business education classes and Downtown clean-up events, and
participated in the development of a Peanuts Park and Pasco Farmers Market refurbishment, and
completed a 5 year Strategic Work Plan including website revisions and “branding;” and
WHEREAS, DPDA tasks for 2020 and 2021 include:
1. Develop and adopt a new 5-year Strategic Plan;
2. Organize quarterly downtown business and property owner meetings:
3. Organize, finance and manage Cinco De Mayo Festival;
4. Organize, finance and manage Fiery Foods Festival;
5. Organize and manage the Pasco Farmers Market each Saturday from May through October;
6. Manage the operations of the Pasco Specialty Kitchen;
7. Provide a scholarship grant program consistent with the DPDA’s 501(c)(3) status,
8. Continue recruitment for vacant downtown business space;
9. Create and maintain a Downtown Property Inventory;
10. Business recruitment, development and engagement activities; and
WHEREAS, DPDA has requested that City funding be made available to develop
resources to eventually reduce the amount of the City subsidy; NOW THEREFORE,
IN CONSIDERATION of the mutual covenants contained herein and other valuable
consideration, it is agreed as follows:
Section 1: DPDA Responsibilities
The DPDA shall conduct its activities and efforts that further the purpose of the DPDA as
identified in Pasco Ordinance 3985 and Article IV of its Charter to include but not be limited to:
Page 25 of 83
DPDA Funding Agreement - 2
Review of City plans and policies. The DPDA shall review existing and evolving City land
use and capital improvement plans and policies affecting the Downtown Area and advise
the city of appropriate considerations. In 2021 this task includes specific collaboration and
outreach efforts with the City regarding communication, preparation and analysis efforts
for a Downtown Master Plan.
Façade Improvement Program. The DPDA shall provide information, applications and
professional assistance to Downtown Area property owners wishing to participate in an
approved and funded Community Development Block Grant façade program.
Promotional Events. The DPDA should conduct or implement an additional promotional
or special event in addition to Cinco de Mayo and the Fiery Foods Festival that contribute
to the success of the Downtown Area or otherwise advance the goals of the DPDA.
Financing Strategy. In collaboration with City staff and/or other professionals, the DPDA
will develop a comprehensive inventory of public and private capital and development
financing tools and incentives that may be available to foster and support its revitalization
efforts. These should include tax credits or other incentives and identification of
infrastructure and other public capital investments that may be necessary to support private
redevelopment projects.
Marketing. The DPDA shall develop a strategy to identify and promote economic vitality
of the Downtown Area including the opportunities associated with the Farmer’s Market
and Specialty Kitchen. These strategies may include: creation of a Downtown Calendar,
quarterly business meetings for Downtown businesses, restaurant recruitment for vacant or
available properties and other similar activities.
Farmer’s Market and Pasco Specialty Kitchen. The DPDA shall optimize the opportunities
associated with the Farmer’s Market and Specialty Kitchen to increase economic activity
and promote recognition of the Downtown. Operation of these facilities must be in
accordance with the associated lease agreement.
Reports: A formal presentation to the City Council by the DPDA board shall be given on
or before December 1 each year. The DPDA shall deliver quarterly written status reports to the
Pasco City Manager detailing the activities, accomplishments and financial status of the DPDA.
Section 3: Additional DPDA Tasks for 2021
The following Tasks are added for the 2021 Funding Agreement:
Outreach for Downtown Improvements. The DPDA shall conduct specific outreach efforts
to apprise the Downtown business community of the status and impacts of the Lewis Street
Overpass Project; Lewis Street Improvement Project; Farmers Market and Peanuts Park
Revitalization Project.
Expanded Public Communications. The DPDA shall initiate an expanded public
communication effort related to Downtown events and opportunities through enhanced
webpage information, podcasts, radio communications, weekly informational emails and
flyers.
Page 26 of 83
DPDA Funding Agreement - 3
Section 3: City Responsibilities
The City of Pasco will remit to DPDA or its designated bank up to $25,000 per quarter by
the 10th day of the first month of said quarter.
Section 3: Term
This agreement shall be effective April 1, 2021 and shall expire on December 31, 2021;
provided, however, either party may terminate the agreement with at least 180 days written notice
delivered to the President of the DPDA or the Pasco City Manager. It is further provided that this
agreement is predicated on the DPDA maintaining its Main Street status for calendar year 2021,
and the City’s contribution, as described in Section 2, is deemed eligible for Main Street tax credits
by the State Department of Revenue. Should the DPDA become ineligible for Main Street tax
credits, this Agreement may be returned to the Pasco City Council for determining its continuation.
The agreement may be extended up to 12 additional months, by mutual agreement of the
parties, subject to budget authority of the City Manager.
Section 4: General Provisions
For the purpose of this Agreement, time is of the essence. Failure of the DPDA to either
provide the accounting or remit disallowed funds as required herein shall constitute a breach of
this agreement. The remedies available to the City shall include but not be limited to, return of all
funds delivered to the DPDA and denial of the right of the DPDA to apply for any future funding.
In the event of a dispute regarding the enforcement, breach, default or interpretation of this
Agreement, the parties shall first meet in a good faith effort to resolve such dispute. In the event
the dispute cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Arbitration Rules (MAR);
venue shall be placed in Franklin County, Washington, the laws of the State of Washington shall
apply; and the prevailing party shall be entitled to its reasonable attorney fees and costs.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this ______, day of ______________, 2021.
CITY OF PASCO DOWNTOWN PASCO DEVELOPMENT
AUTHORITY
_______________________________ _______________________________
Dave Zabell, City Manager Gabriel Portugal, President
Page 27 of 83
2/24/2021
1
Exit Conference
City of Pasco
December 16, 2019
1
Disclaimer: This presentation is intended to be viewed in conjunction with the complete packet of exit materials provided. A copy of those
materials may be requested by contacting the presenters listed or by emailing PublicRecords@sao.wa.gov.
Ginny Waltman
Program Manager
Deborah O’Leary
Audit Lead
2
Results that Matter
Increased trust in government
Independent, transparent
examinations
Improved efficiency and
effectiveness of government Pat McCarthy
State Auditor
Page 28 of 83
2/24/2021
2
Accountability Audit Results
3
Results in Brief
This report describes the overall results and conclusions
for the areas we examined.
January 1, 2019 through December 31, 2019
In keeping with general auditing practices, we do not
examine every transaction, activity, policy, internal control,
or area. As a result, no information is provided on the
areas that were not examined.
In those selected areas, City operations complied, in all
material respects, with applicable state laws, regulations,
and its own policies, and provided adequate controls over
the safeguarding of public resources.
Accountability Audit Results
4
Using a risk-based audit approach, for the City, we
examined the following areas during the period:
•Cash receipting – timeliness and completeness of deposits
at the Police Department
•Accounts payable – general disbursements, travel
expenditures and electronic funds transfers
•Payroll – gross wages, leave cash outs and overtime
•Procurement – public works, purchases, professional
services and personal service contracts
•Self-insurance for unemployment and health and welfare
•Use of restricted funds – building permit revenue and
hotel/motel taxes
Page 29 of 83
2/24/2021
3
Financial Audit Results
5
• Opinion issued in accordance with U.S.
GAAP
• Audit conducted in accordance with
Government Auditing Standards
Unmodified
Opinion Issued
• We reported no significant deficiencies
in internal control
• We identified deficiencies that we
consider to be material weaknesses.
• We noted no instances of
noncompliance that were material to the
financial statements of the City
Internal Control
and Compliance
over Financial
Reporting
January 1, 2019 through December 31, 2019
Financial Statement
Preparation - Finding
2019-001: The City’s internal
controls over financial
reporting were inadequate to
ensure accurate reporting.
6
Page 30 of 83
2/24/2021
4
Financial Audit Results
7
• Uncorrected misstatements have been
provided for review
Required
Communications
Federal Grant Compliance Audit
Results
8
• Opinion issued on the City’s compliance
with requirements applicable to its
major programs
• Audit conducted in accordance with
Government Audit Standards and the
Uniform Guidance
Unmodified
Opinion Issued
• We reported no significant deficiencies
in internal control
• We identified no deficiencies that we
consider to be material weaknesses.
• We noted no instances of
noncompliance that are required to be
reported
Internal Control
and Compliance
over Major
Programs
January 1, 2019 through December 31, 2019
Page 31 of 83
2/24/2021
5
Major Programs Selected for
Audit
9
CFDA No. Program or Cluster Title Total Amount
Expended
14.218 CDBG - Entitlement Grants Cluster -
Community Development Block
Grants/Entitlement Grants
$739,180
20.205 Highway Planning and Construction
Cluster - Highway Planning and
Construction
$866,734
These costs amount to approximately 68 percent of the total federal
expenditures for 2019
Single Audit Scope
•Performed risk assessments on all City awards
over $187,500
•Selected two major programs and determined
compliance requirements for each program
•Assessed design of internal controls, and tested
controls, over each compliance requirement
•Tested applicable compliance requirements for
each of the City’s two federal major programs
1010
Page 32 of 83
2/24/2021
6
11
Tracker: A clear path to all your
audit information
Using tracker, your government can:
•Get up to speed more quickly when turnover
occurs
•Better and more quickly prepare for
upcoming audits
•More easily identify and resolve issues
•Enter a status update at the time of the
change
•Show quickly that it resolved an issue – and
get the credit for that expedient resolution
Closing Remarks
•Audit costs are in alignment with our original estimate
•Next audit: April 2021
•Accountability for public resources
•Financial statement
•Federal programs
An estimated cost for the next audit has been provided
in our exit packet
12
Page 33 of 83
2/24/2021
7
Report Publication
Audit reports are published on our
website.
Sign up to be notified by email when
audit reports are posted to our website:
https://sao.wa.gov/about- sao/sign-up-
for-news-alerts/
Audit Survey
When your report is released, you will
receive an audit survey from us.
We value your opinions on our
audit services and hope you
provide feedback.
13
14
Thank You!
•We thank City officials and staff for timely communications throughout
the audit process.
•In particular, we would like to thank Griselda Garcia, Lead Accountant for
facilitating a smooth audit process as well as the Information Services staff
for working with us to ensure our audit staff had remote access to the
City’s database.
Page 34 of 83
2/24/2021
8
15
Questions?
Contact Ginny Waltman, Program Manager
Ginny.Waltman@sao.wa.gov
(509) 734-7104
15
15
Page 35 of 83
Accountability Audit Report
City of Pasco
For the period January 1, 2019 through December 31, 2019
Published (Inserted by OS)
Report No. 1027416
Page 4 of 46Page 36 of 83
Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (564) 999-0950 Pat.McCarthy@sao.wa.gov
Office of the Washington State Auditor
Pat McCarthy
Issue Date – (Inserted by OS)
Mayor and City Council
City of Pasco
Pasco, Washington
Report on Accountability
Thank you for the opportunity to work with you to promote accountability, integrity and openness
in government. The Office of the Washington State Auditor takes seriously our role of providing
state and local governments with assurance and accountability as the independent auditor of public
accounts. In this way, we strive to help government work better, cost less, deliver higher value and
earn greater public trust.
Independent audits provide essential accountability and transparency for City operations. This
information is valuable to management, the governing body and public stakeholders when
assessing the government’s stewardship of public resources.
Attached is our independent audit report on the City’s compliance with applicable requirements
and safeguarding of public resources for the areas we examined. We appreciate the opportunity to
work with your staff, and we value your cooperation during the audit.
Sincerely,
Pat McCarthy
State Auditor
Olympia, WA
Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov.
Page 5 of 46Page 37 of 83
Office of the Washington State Auditor Page 3
TABLE OF CONTENTS
Audit Results ................................................................................................................................... 4
Related Reports ............................................................................................................................... 5
Information about the City .............................................................................................................. 6
About the State Auditor's Office ..................................................................................................... 7
Page 6 of 46Page 38 of 83
Office of the Washington State Auditor Page 4
AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In those
selected areas, City operations complied, in all material respects, with applicable state laws,
regulations, and its own policies, and provided adequate controls over the safeguarding of public
resources.
In keeping with general auditing practices, we do not examine every transaction, activity, policy,
internal control, or area. As a result, no information is provided on the areas that were not
examined.
About the audit
This report contains the results of our independent accountability audit of the City of Pasco from
January 1, 2019 through December 31, 2019.
Management is responsible for ensuring compliance and adequate safeguarding of public resources
from fraud, loss or abuse. This includes the design, implementation and maintenance of internal
controls relevant to these objectives.
This audit was conducted under the authority of RCW 43.09.260, which requires the Office of the
State Auditor to examine the financial affairs of all local governments. Our audit involved
obtaining evidence about the City’s use of public resources, compliance with state laws and
regulations and its own policies and procedures, and internal controls over such matters. The
procedures performed were based on our assessment of risks in the areas we examined.
Based on our risk assessment for the year ended December 31, 2019, the areas examined were
those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the
following areas during this audit period:
Cash receipting – timeliness and completeness of deposits at the Police Department
Accounts payable – general disbursements, travel expenditures and electronic funds
transfers
Payroll – gross wages, leave cash outs and overtime
Procurement – public works, purchases, professional services and personal service
contracts
Self-insurance for unemployment and health and welfare
Use of restricted funds – building permit revenues and hotel/motel taxes
Page 7 of 46Page 39 of 83
Office of the Washington State Auditor Page 5
RELATED REPORTS
Financial
Our opinion on the City’s financial statements and compliance with federal grant program
requirements is provided in a separate report, which includes the City’s financial statements. That
report is available on our website, http://portal.sao.wa.gov/ReportSearch.
That report includes a finding for a material weakness in internal controls over financial reporting
regarding financial statement preparation.
Federal grant programs
We evaluated internal controls and tested compliance with the federal program requirements, as
applicable, for the City’s major federal programs, which are listed in the Schedule of Findings and
Questioned Costs section of the separate financial statement and single audit report. That report is
available on our website, http://portal.sao.wa.gov/ReportSearch.
Page 8 of 46Page 40 of 83
Office of the Washington State Auditor Page 6
INFORMATION ABOUT THE CITY
The City of Pasco, incorporated in 1891, and serves about 75,000 Franklin County citizens. The
City provides services including police, fire, Municipal Court, emergency response, parks and
recreation, a senior center, a golf course, public works, and planning and economic development.
The City also operates a cemetery, a water system, sewer system and an irrigation system.
An elected, seven-member Council governs the City. The Council selects one of its members to
serve as Mayor. The Council also appoints management to oversee the City’s daily operations and
about 365 employees. The City had about $87 million in expenditures for 2019.
Contact information related to this report
Address: City of Pasco
525 N. 3rd
P.O. Box 293
Pasco, WA 99301
Contact: Richa Sigdel, Finance Director
Telephone: (509) 545-3488
Website: www.pasco-wa.gov
Information current as of report publish date.
Audit history
You can find current and past audit reports for the City of Pasco at
http://portal.sao.wa.gov/ReportSearch.
Page 9 of 46Page 41 of 83
Office of the Washington State Auditor Page 7
ABOUT THE STATE AUDITOR’S OFFICE
The State Auditor’s Office is established in the state’s Constitution and is part of the executive
branch of state government. The State Auditor is elected by the citizens of Washington and serves
four-year terms.
We work with our audit clients and citizens to achieve our vision of government that works for
citizens, by helping governments work better, cost less, deliver higher value, and earn greater
public trust.
In fulfilling our mission to hold state and local governments accountable for the use of public
resources, we also hold ourselves accountable by continually improving our audit quality and
operational efficiency and developing highly engaged and committed employees.
As an elected agency, the State Auditor’s Office has the independence necessary to objectively
perform audits and investigations. Our audits are designed to comply with professional standards
as well as to satisfy the requirements of federal, state, and local laws.
Our audits look at financial information and compliance with state, federal and local laws on the
part of all local governments, including schools, and all state agencies, including institutions of
higher education. In addition, we conduct performance audits of state agencies and local
governments as well as fraud, state whistleblower and citizen hotline investigations.
The results of our work are widely distributed through a variety of reports, which are available on
our website and through our free, electronic subscription service.
We take our role as partners in accountability seriously, and provide training and technical
assistance to governments, and have an extensive quality assurance program.
Contact information for the State Auditor’s Office
Public Records requests PublicRecords@sao.wa.gov
Main telephone (564) 999-0950
Toll-free Citizen Hotline (866) 902-3900
Website www.sao.wa.gov
Page 10 of 46Page 42 of 83
Financial Statements and Federal Single Audit
Report
City of Pasco
For the period January 1, 2019 through December 31, 2019
Published (Inserted by OS)
Report No. 1027509
Page 11 of 46Page 43 of 83
Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (564) 999-0950 Pat.McCarthy@sao.wa.gov
Office of the Washington State Auditor
Pat McCarthy
Issue Date – (Inserted by OS)
Mayor and City Council
City of Pasco
Pasco, Washington
Report on Financial Statements and Federal Single Audit
Please find attached our report on the City of Pasco’s financial statements and compliance with
federal laws and regulations.
We are issuing this report in order to provide information on the City’s financial condition.
Sincerely,
Pat McCarthy
State Auditor
Olympia, WA
Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov.
Page 12 of 46Page 44 of 83
Office of the Washington State Auditor
TABLE OF CONTENTS
Schedule of Findings and Questioned Costs ................................................................................... 4
Schedule of Audit Findings and Responses .................................................................................... 6
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards..................................................................................................... 9
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control Over Compliance in Accordance With the Uniform Guidance ......................... 12
Independent Auditor's Report on Financial Statements ................................................................ 15
Financial Section ........................................................................................................................... 19
Corrective Action Plan for Findings Reported Under Uniform Guidance ................................... 21
About the State Auditor's Office ................................................................................................... 22
Page 13 of 46Page 45 of 83
Office of the Washington State Auditor
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
City of Pasco
January 1, 2019 through December 31, 2019
SECTION I – SUMMARY OF AUDITOR’S RESULTS
The results of our audit of the City of Pasco are summarized below in accordance with Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Financial Statements
We issued an unmodified opinion on the fair presentation of the financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate discretely
presented component units and remaining fund information in accordance with accounting
principles generally accepted in the United States of America (GAAP).
Internal Control over Financial Reporting:
Significant Deficiencies: We reported no deficiencies in the design or operation of internal
control over financial reporting that we consider to be significant deficiencies.
Material Weaknesses: We identified deficiencies that we consider to be material
weaknesses.
We noted no instances of noncompliance that were material to the financial statements of the City.
Federal Awards
Internal Control over Major Programs:
Significant Deficiencies: We reported no deficiencies in the design or operation of internal
control over major federal programs that we consider to be significant deficiencies.
Material Weaknesses: We identified no deficiencies that we consider to be material
weaknesses.
Page 14 of 46Page 46 of 83
Office of the Washington State Auditor
We issued an unmodified opinion on the City’s compliance with requirements applicable to each
of its major federal programs.
We reported no findings that are required to be disclosed in accordance with 2 CFR 200.516(a).
Identification of Major Federal Programs
The following programs were selected as major programs in our audit of compliance in accordance
with the Uniform Guidance.
CFDA No. Program or Cluster Title
14.218 CDBG – Entitlement Grants Cluster – Community Development Block
Grants/Entitlement Grants
20.205 Highway Planning and Construction Cluster – Highway Planning and
Construction
The dollar threshold used to distinguish between Type A and Type B programs, as prescribed by
the Uniform Guidance, was $750,000.
The City did not qualify as a low-risk auditee under the Uniform Guidance.
SECTION II – FINANCIAL STATEMENT FINDINGS
See Finding 2019-001.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED
COSTS
None reported.
Page 15 of 46Page 47 of 83
Office of the Washington State Auditor
SCHEDULE OF AUDIT FINDINGS AND RESPONSES
City of Pasco
January 1, 2019 through December 31, 2019
2019-001 The City’s internal controls over financial reporting were
inadequate to ensure accurate reporting.
Background
The City’s elected officials, state, and federal agencies, and the public rely on the
information included in the financial statements and reports to make decisions. City
management is responsible for designing, implementing and maintaining internal
controls that provide reasonable assurance regarding the reliability of financial
reporting.
Government Auditing Standards, prescribed by the Comptroller General of the
United States, requires the auditor to communicate material weaknesses, defined
below in the Applicable Laws and Regulations section, as a finding.
Description of Condition
Our audit identified the following deficiencies in internal controls over financial
reporting that, when taken together, represent a material weakness:
Governmental Accounting Standards Board Statement No. 34 (GASB 34)
outlines the criteria for reporting a major fund on the financial statements.
Governmental and proprietary fund financial statements focus on major
funds. The financial statements should present major funds individually and
non-major funds in aggregate. Accounting standards provide quantitative
thresholds for identifying which funds must be reported as major. The City
prepared a calculation to determine its major funds. However, the City
missed two major funds because it did not incorporate current guidance in
the tool it used to determine the criteria for reporting a major fund.
The City did not have an effective process in place to review the financial
statements to ensure they were accurate and complete.
Cause of Condition
The City uses a spreadsheet to help with the calculation and determination of major
funds. The City did not update the spreadsheet to align with current guidance and
ensure the calculation of major funds included all applicable criteria. In addition,
the City did not dedicate adequate resources to perform a detailed review of the
financial statements.
Page 16 of 46Page 48 of 83
Office of the Washington State Auditor
Effect of Condition
The material weakness in internal controls caused the following material errors
found in the financial statements submitted for audit:
The City did not report the Ambulance Fund or the Local Improvement
District Loan Fund as major funds, as required by GASB 34.
Our audit identified several other, less significant errors in the statements,
notes, and schedules.
Recommendation
We recommend the City dedicate sufficient resources to preparing accurate
financial statements under generally accepted accounting practices (GAAP),
including ensuring that tools used to prepare the financial statements reflect current
guidance. In addition, the City should establish a robust process to review the final
financial statements to ensure they are accurate and complete.
City’s Response
The City is appreciative of the work of the State Auditor’s Office, and agrees with
their finding. The City recognizes the importance of accurate reporting and strives
to continuously improve reporting. Upon notification of the error, the spreadsheet
calculation was corrected and the 2019 report recreated to provide correct
presentation. Since the finding notification, the City has implemented a software
solution that integrates with our accounting program. This program will support
the production of future annual statements. Use of the program, will standardize
incorporation of all financial information for report preparation. Additionally, the
software is updated annually to reflect new accounting pronouncements.
Auditor’s Remarks
We appreciate the City’s commitment to resolve this finding and thank the City for
its cooperation and assistance during the audit. We will review the corrective action
taken during our next regular audit.
Applicable Laws and Regulations
Government Auditing Standards, December 2011 Revision, paragraph 4.23
establishes reporting requirements related to significant deficiencies or material
weaknesses in internal control, instances of fraud or abuse, and noncompliance with
provisions of law, regulations, contracts, or grant agreements.
Page 17 of 46Page 49 of 83
Office of the Washington State Auditor
The American Institute of Certified Public Accountants defines significant
deficiencies and material weaknesses in its Codification of Statements on Auditing
Standards, section 265, Communicating Internal Control Related Matters Identified
in an Audit, paragraph 7.
Page 18 of 46Page 50 of 83
Office of the Washington State Auditor
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
City of Pasco
January 1, 2019 through December 31, 2019
Mayor and City Council
City of Pasco
Pasco, Washington
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate discretely
presented component units and remaining fund information of the City of Pasco, as of and for the
year ended December 31, 2019, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements, and have issued our report thereon dated
December 16, 2020.
As discussed in Note 16 to the 2019 financial statements, in February 2020, a state of emergency
was declared that could have a negative financial effect on the City. Management’s plans in
response to this matter are also described in Note 16.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
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deficiencies may exist that were not identified. However, as described in the accompanying
Schedule of Audit Findings and Responses, we identified certain deficiencies in internal control
that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the City’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance. We consider the deficiencies described in the
accompanying Schedule of Audit Findings and Responses as Finding 2019-001 to be material
weaknesses.
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free
from material misstatement, we performed tests of the City’s compliance with certain provisions
of laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing
an opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
CITY’S RESPONSE TO FINDINGS
The City’s response to the findings identified in our audit is described in the accompanying
Schedule of Audit Findings and Responses. The City’s response was not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion
on the response.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City’s internal control or on compliance. This report is an integral part of an audit performed in
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Office of the Washington State Auditor
accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose. However, this
report is a matter of public record and its distribution is not limited. It also serves to disseminate
information to the public as a reporting tool to help citizens assess government operations.
Pat McCarthy
State Auditor
Olympia, WA
December 16, 2020
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Office of the Washington State Auditor
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH THE UNIFORM GUIDANCE
City of Pasco
January 1, 2019 through December 31, 2019
Mayor and City Council
City of Pasco
Pasco, Washington
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM
We have audited the compliance of the City of Pasco, with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could
have a direct and material effect on each of the City’s major federal programs for the year ended
December 31, 2019. The City’s major federal programs are identified in the accompanying
Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal
programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
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Office of the Washington State Auditor
referred to above that could have a direct and material effect on a major federal program occurred.
An audit includes examining, on a test basis, evidence about the City’s compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination on the City’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended December 31, 2019.
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal
program in order to determine the auditing procedures that are appropriate in the circumstances
for the purpose of expressing an opinion on compliance for each major federal program and to test
and report on internal control over compliance in accordance with the Uniform Guidance, but not
for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
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Office of the Washington State Auditor
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose. However, this report is a matter of public record and its distribution is not limited. It also
serves to disseminate information to the public as a reporting tool to help citizens assess
government operations.
Pat McCarthy
State Auditor
Olympia, WA
December 16, 2020
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Office of the Washington State Auditor
INDEPENDENT AUDITOR’S REPORT ON
FINANCIAL STATEMENTS
City of Pasco
January 1, 2019 through December 31, 2019
Mayor and City Council
City of Pasco
Pasco, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the discretely presented component units and
remaining fund information of the City of Pasco, as of and for the year ended December 31, 2019,
and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements as listed on page 19.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
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Office of the Washington State Auditor
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the City’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate discretely presented component units and remaining fund
information of the City of Pasco, as of December 31, 2019, and the respective changes in financial
position and, where applicable, cash flows thereof, and the budgetary comparison for the General
and Ambulance funds, for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Matters of Emphasis
As discussed in Note 16 to the 2019 financial statements, in February 2020, a state of emergency
was declared that could have a negative financial effect on the City. Management’s plans in
response to this matter are also described in Note 16. Our opinion is not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information listed on page 19
be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board
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Office of the Washington State Auditor
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The accompanying
Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
This schedule is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated, in all material respects, in relation to the basic financial statements
taken as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated
December 16, 2020 on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
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Office of the Washington State Auditor
integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
Pat McCarthy
State Auditor
Olympia, WA
December 16, 2020
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Office of the Washington State Auditor
FINANCIAL SECTION
City of Pasco
January 1, 2019 through December 31, 2019
REQUIRED SUPPLEMENTARY INFORMATION
Management’s Discussion and Analysis – 2019
BASIC FINANCIAL STATEMENTS
Statement of Net Position – 2019
Statement of Activities – 2019
Balance Sheet – Governmental Funds – 2019
Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental
Funds – 2019
Reconciliation of Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balance to the Statement of Activities – 2019
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual
– General Fund – 2019
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual
– Ambulance Fund – 2019
Statement of Net Position – Proprietary Funds – 2019
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds
– 2019
Statement of Cash Flows – Proprietary Funds – 2019
Statement of Net Position – Fiduciary Funds – 2019
Statement of Changes in Fiduciary Net Position – 2019
Notes to Financial Statements – 2019
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Net OPEB Liability and Related Ratios – Old Fire OPEB –
2019
Schedule of Investment Returns – Old Fire OPEB – 2019
Schedule of City Contributions – LEOFF 1 OPEB – 2019
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Office of the Washington State Auditor
Schedule of Changes in the Total OPEB Liability and Related Ratios – LEOFF 1 OPEB –
2019
Schedule of Changes in the City’s Net Pension Liability and Related Ratios – Old Fire
Pension Fund – 2019
Schedule of Contributions – Fire Pension Fund – 2019
Schedule of Investment Returns – Fire Pension Plan – 2019
Schedule of Proportionate Share of the Net Pension Liability (Asset) – PERS 1, PERS
2/3, LEOFF 1, LEOFF 2
Schedule of Employer Contributions – PERS 1, PERS 2/3, LEOFF 1, LEOFF 2 – 2019
SUPPLEMENTARY AND OTHER INFORMATION
Schedule of Expenditures of Federal Awards – 2019
Notes to the Schedule of Expenditures of Federal Awards – 2019
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Office of the Washington State Auditor
CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER
UNIFORM GUIDANCE
City of Pasco
January 1, 2019 through December 31, 2019
This schedule presents the corrective action planned by the City for findings reported in this report
in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance).
Finding ref number:
2019-001
Finding caption:
The City’s internal controls over financial reporting were
inadequate to ensure accurate reporting.
Name, address, and telephone of City contact person:
Richa Sigdel, Finance Director;
525 N 3rd, Pasco, WA 99301;
(509) 545-3488
Corrective action the auditee plans to take in response to the finding:
The City has updated its major fund calculation spreadsheet as well as implemented a software
system which will complete a separate major fund calculation to ensure accuracy. Further,
independent review of the major fund calculations is an itemized step in the City’s CAFR
Checklist.
Anticipated date to complete the corrective action: Completed
Finance Department (509) 545-3420 Fax (509) 544-3082
P.O. Box 293 525 N. Third Ave. Pasco, WA 99301
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Office of the Washington State Auditor
ABOUT THE STATE AUDITOR’S OFFICE
The State Auditor’s Office is established in the state’s Constitution and is part of the executive
branch of state government. The State Auditor is elected by the citizens of Washington and serves
four-year terms.
We work with our audit clients and citizens to achieve our vision of government that works for
citizens, by helping governments work better, cost less, deliver higher value, and earn greater
public trust.
In fulfilling our mission to hold state and local governments accountable for the use of public
resources, we also hold ourselves accountable by continually improving our audit quality and
operational efficiency and developing highly engaged and committed employees.
As an elected agency, the State Auditor’s Office has the independence necessary to objectively
perform audits and investigations. Our audits are designed to comply with professional standards
as well as to satisfy the requirements of federal, state, and local laws.
Our audits look at financial information and compliance with state, federal and local laws on the
part of all local governments, including schools, and all state agencies, including institutions of
higher education. In addition, we conduct performance audits of state agencies and local
governments as well as fraud, state whistleblower and citizen hotline investigations.
The results of our work are widely distributed through a variety of reports, which are available on
our website and through our free, electronic subscription service.
We take our role as partners in accountability seriously, and provide training and technical
assistance to governments, and have an extensive quality assurance program.
Contact information for the State Auditor’s Office
Public Records requests PublicRecords@sao.wa.gov
Main telephone (564) 999-0950
Toll-free Citizen Hotline (866) 902-3900
Website www.sao.wa.gov
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AGENDA REPORT
FOR: City Council March 3, 2021
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 3/8/21
FROM: Bob Gear, Fire Chief
Fire Department
SUBJECT: Ordinance - Budget Adjustment for Fire Equipment Purchase
I. REFERENCE(S):
Draft Ordinance
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
$310,000 Funding Available for Fire Equipment
$ 95,000 Funding Available for Ambulance Equipment
$405,000 Transfer from Equipment Rental Replacement Fund to PFD's
Operating Budget
IV. HISTORY AND FACTS BRIEF:
The City of Pasco Fire Department (PFD) maintains compliance with NFPA
1561, 1710, 1061, and WAC 296-305-05000 and NIMS. To maintain
compliance the PFD has need to replace its portable radios which have
reached the end of their service life. The current portable radios that are in use
by the PFD are over fifteen (15) years of age and are not serviced or supported
by the manufacturer. Additionally, the current PFD radios do not meet the
current Federal Communications Commission (FCC) for interoperability and
digital radio technology. Purchasing updated radios will ensure that PFD has
interoperability radio communications with the local and state fire and police
agencies across our Tri-County region.
The City of PFD maintains its authorized EMS certified provider (EMT and
Paramedic) scope of practice provisions in accordance with RCW 18.71.205,
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RCW 246WAC 246.976.920 WAC 18.73.081, and -976-the One 182. of
medical tools used by PFD to provide the service is a portable combination
EKG monitor and external heart defibrillator. Some of the portable combination
EKG monitor and external heart defibrillator that PFD is using have reached
their end of life cycle and the vendor is no longer providing the softwa re
updates or technical support to these medical devices. To ensure PFD can
meet the service deliver requirements the portable combination EKG monitor
and external heart defibrillator are in need of replacement.
V. DISCUSSION:
Following of review a the and Equipment Services Emergency Fire
Replacement fund, where anticipated cost and timing of planned purchases
was evaluated, a surplus of $310,000, was determined to be available in
accordance with the projected equipment replacement schedule.
• This funding will allow the purchase of 100 replacement portable radios,
spare batteries for the portable radios, battery chargers and external
microphones/speakers.
Following a review of the Ambulance Equipment Replacement fund, where
anticipated cost and timing of planned purchases was evaluated, a surplus
$95,000, was determined to be available in accordance with the projected
equipment replacement schedule.
• This funding will allow the purchase of four (4) replacement portable
combination EKG monitor and external heart defibrillators.
Staff recommends Council adopt the Ordinance for the budget adjustment and
use of funds from equipment replacement fund to allow for the purchase of new
portable radios and portable combination EKG monitor and external heart
defibrillators.
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Ordinance – 2021 Operating Budget Amendment - 1
ORDINANCE NO. _______
AN ORDINANCE AMENDING THE 2021-2022 BIENNIAL
OPERATING BUDGET (ORDINANCE NO. 4503) OF THE CITY OF
PASCO, WASHINGTON, BY PROVIDING SUPPLEMENT THERETO; TO
PROVIDE ADDITIONAL APPROPRIATION IN THE CITY’S GENERAL
FUND FOR THE PURCHASE OF NEEDED FIRE DEPARTMENT
EQUIPMENT.
WHEREAS, on December 7, 2021, the Pasco City Council approved Ordinance No. 4503,
adopting the 2021-2022 Biennial Budget.
WHEREAS, the Pasco Fire Department staff have determined the need to purchase new,
replacement, portable radios, as well as purchase replacements of the combination EKG monitors
and heart defibrillators.
WHEREAS, no funds were appropriated in the 2021-2022 Equipment Rental
Replacement Fund to purchase the needed equipment.
WHEREAS, the Pasco Fire Department staff have determined sufficient funds are
available in the Equipment Rental Replacement Fund to purchase the needed equipment and
recommend amendment to such budget.
WHEREAS, the application of funds have been identified and the City Council of the
City of Pasco finds and determines that such amendment of the 2021-2022 Biennial Budget is in
the best interests of residents of the City of Pasco and will promote the general health, safety and
welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. Pursuant to RCW 35A.33.120, the 2021-2022 Operating Budget be and the
same is hereby amended to provide for the following adjustments to revenues, transfers in,
expenditures, and transfers out b y providing authority for any necessar y transfer of money within
or between funds indicated, and their subsequent impact to end fund balance:
Fund Revenue Expense Net Change
EQUIPMENT RENTAL REPLACEMENT FUND -
GOVERNMENT TYPE 0
405,000 (405,000)
Total 0 405,000 (405,000)
Section 2. That the additions in appropriations and expenditures are hereb y declared to
exist in the above funds for the said uses and purposes as shown above and the proper City officials
are hereby authorized and directed to issue warrants and transfer funds in accordance with the
provision of the Ordinance.
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Ordinance – 2021 Operating Budget Amendment - 2
Section 3. Except as amended herein, Ordinance 4503 as previously adopted heretofore
shall remain unchanged
Section 4. This ordinance, being an exercise of a power specifically delegated to the City
legislative body, is not subject to referendum, and shall take full force and effect five (5) days after
approval, passage and publication as required by law.
Adopted by the City Council of the City of Pasco, this ___ day of __________, 2021.
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Published: ___________________________
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AGENDA REPORT
FOR: City Council March 4, 2021
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 3/8/21
FROM: Rick White, Director
Community & Economic Development
SUBJECT: Ordinance - Amending PMC Title 23 Related to SEPA
I. REFERENCE(S):
Hearing Examiner 2020 Annual Report
Proposed Ordinance Amending Title 23 PMC
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
In mid 2019, City Council approved use of a Hearing Examiner system to
conduct public hearings and process various land use permits and rezone
requests. Previously the City's Planning Commission conducted these
processes with final decisions provided by Council.
Use of a Hearing Examiner has been positively received by the community and
development industry and has provided a much needed reduction in potential
liability for contentious land use decisions.
Each year, Pasco's Hearing Examiner submits an annual report summarizing
the year's activities and notes any areas of potential concern.
This year the Examiner has provided the attached Annual Report and has
recommended review of existing Pasco Municipal Code (PMC) regulations
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incorporating applicable provisions of the Washington Administrative Code
(WAC) regarding the State Environmental Policy Act (SEPA) protocols.
V. DISCUSSION:
The City Attorney's office has prepared the attached ordinance revising the
dated SEPA Appeal provisions in the PMC after considerable discussions with
staff and the Pasco Hearing Examiner.
The revisions are compliant with State law and the WAC and affe ct clarity;
notice requirements; appeal deadlines and the scope and consolidation of
appealable actions.
The City Attorney's office and staff will be available to discuss the revisions at
the Council Workshop.
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City of Pasco Hearing Examiner Services, 2020 Report Page 2
5400 Carillon Point, Bldg. 5000, Ste. 476
Kirkland, Washington 98033
(206) 682-0767 • susan@susandrummond.com
The Hearing Examiner conditionally approved the special permits and preliminary plat
applications. The variance requests were denied. The Hearing Examiner recommended approval
of the five rezones. The SEPA appeal was granted in part (fire fee), with one issue found to be
moot (traffic impact analysis). The short plat appeal on a project condition was granted. In
addition, two administrative exception requests were granted. All recommendations and
decisions were issued on or before ten business days of record closure.
2. Overview of 2020 Hearing Examiner Review Process
The City is familiar with the Hearing Examiner review process. However, in general, the
City's independent Examiner reviews the administrative documents, including the Staff Report,
which are transmitted to the Examiner before the hearing. On permit applications, at the hearing
the Planning Department summarizes the proposal. This summary is followed by applicant
presentation and citizen comment. The applicant often addresses questions and concerns raised
in comment, and staff may provide clarification or technical input. When necessary to further
address concerns raised, the record is kept open for a set number of days. For all remote
application hearings, the record is kept open for at least two days, just in case there was anyone
who wished to comment but had technical difficulties. There have been no reported difficulties,
but this allowance is still made. Within ten business days of record closure, a decision is issued.
An appeal hearing can be more complex. Two appeals were heard this past year. As on
previous appeals, the appellant presented first, followed by the Planning Department. The
appeals were somewhat more complex than in the past, with a focus on project conditions.
Decisions issued within ten business days following record closure (on the appeal, or on the
underlying permit when applicable).
3. Issues of Local Concern
The hearing system allows for the submission of citizen and agency comment to inform
the review of certain land use applications and for conditions to be tailored to development
proposals to address their impacts.
The Examiner understands the extensive background work involved in submitting an
application to the Examiner, so pays particular attention to the record prepared before the
hearing, which typically comprises the majority of the evidence reviewed. At the hearing, these
materials are supplemented with additional documents and testimony.
The Examiner considers the evidence submitted and regulatory requirements. Matters
such as height and lot size are often not credibly subject to dispute. But, for matters requiring
that the evidence be weighed, evidence submitted by a qualified professional with expertise on
the issue is useful, although most evidence is not from expert witnesses. The entire record is
considered to ensure local concerns and impacts are adequately accounted for.
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City of Pasco Hearing Examiner Services, 2020 Report Page 3
5400 Carillon Point, Bldg. 5000, Ste. 476
Kirkland, Washington 98033
(206) 682-0767 • susan@susandrummond.com
4. Suggestions
Overall, from the Examiner's perspective, the hearing examiner process has worked well.
The City may wish to update its SEPA code and procedures to provide standard 14-day comment
and appeal periods.2 And, in addressing SEPA mitigation, it would be worth considering whether
City SEPA procedures and policies should be adjusted. In an appeal, these procedures can be
particularly important. Also, the record is central is determining both application and appeal
issues, so developing sufficient information before a decision is made, and then providing same
to the Examiner, is important.
5. Conclusion
Going forward, the Examiner will continue to endeavor to provide parties an adequate
opportunity to raise concerns and to efficiently render decisions based on the record and local
requirements. The City is constantly evaluating its approach to land use review, and the
Examiner is always open to improvements to same.
Thank you for the opportunity to serve as your Hearing Examiner. Please let me know if
there are questions.
2 See e.g., RCW 43.21C.060, .075; WAC 197-11-340, 680.
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Ordinance Amending PMC 23.35.070 - 1
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PASCO, WASHINGTON, AMENDING PMC SECTION 23.35.070
“APPEALS”
WHEREAS, the State Environmental Policy Act RCW 43.21C. (SEPA) authorizes cities
to draft local SEPA policies; and
WHEREAS, SEPA requires that all local SEPA policies comply with the Department of
Ecology’s model SEPA rules; and
WHEREAS, the Department of Ecology’s model SEPA rules permit the City to provide
for a SEPA appeals process; and
WHEREAS, the City has previously adopted a SEPA appeal process; and
WHEREAS, the City has now determined it is appropriate to modify its SEPA appeal
process in order to clarify the procedural rights of parties commencing SEPA appeals.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. That Section 23.35.070 entitled “Appeals” of the Pasco Municipal Code shall
be and hereby is amended and shall read as follows:
23.35.070 Appeals.
(1) Except for permits and variances issued pursuant to Chapter 90.58 RCW (Shoreline
Management Act), When any nonexempt action, not requiring a decision of the City Council, is
conditioned or denied or after a threshold determination is made on the basis of SEPA by a
nonelected official, the decision may be appealed to the Hearing Examiner.
(2) Such appeal may be perfected by the proponent or an aggrieved party by giving notice to
the responsible official. Appeals on threshold determinations shall be filed within 10 days or
prior to the lapse of any comment period on a threshold determination under WAC 197-11-
340(20). All other appeals shall be filed within 10 days. The appeals shall be filed by the
required deadlines of this chapter.
(a) The appeal shall be filed in writing and shall contain the name and address of the
person filing the appeal and the name of the organization or agency represented, if any.
(b) The appeal shall set forth the specific reason, rationale, and/or basis for the
appeal.
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Ordinance Amending PMC 23.35.070 - 2
(c) Payment of the appeal fee in the amount of $200.00 shall occur at the time the
appeal is filed.
(3) In addition to the exhibits submitted, the City may submit a responsive memorandum to
the Hearing Examiner and provide copies to the other parties at least one (1) day prior to the
hearing.
(34) If the appeal has been timely filed and complies with the requirements of
subsection (2) of this section, the Hearing Examiner shall conduct an open record appeal hearing
into the merits of the appeal, at which time the Hearing Examiner shall hear and receive
testimony, documentary evidence, and arguments from the appellant(s) parties solely on the
issues raised or identified by the appeal.
(a) The person(s) filing the appeal shall have the burden of going forward with the
evidence and the ultimate burden of persuasion.
(b) Notice of any open record appeal hearing held pursuant to this section shall be
provided as specified in PMC 25.210.040to the parties at least fourteen (14) days prior to
the hearing.
(c) The Hearing Examiner may continue the open record appeal hearing from time to
time without further mail or delivered notice.
(d) The Hearing Examiner shall maintain an electronic record of the testimony and
arguments presented and a record of any physical evidence/documents presented.
(e) The Hearing Examiner’s decision shall be rendered within ten (10) working days
of the conclusion of an open record appeal hearing unless a longer period is agreed to by
the appellant parties. This will be the effective date of the decision.
(f) The Hearing Examiner’s decision shall include findings of fact and conclusions in
support of the decision.
(g) The Hearing Examiner’s decision under this section may be to grant or deny the
appeal in whole or in part, or to remand the threshold determination to the responsible
official for reconsideration.
(h) Appeal hearings held by the Hearing Examiner pursuant to this section shall be de
novo.
(i) The Hearing Examiner’s decision shall become final unless timely appealed by an
aggrieved party within 10 working days from the effective date of the decision.
(45) Appeal of the final decision of the Hearing Examiner under this section shall be to the
superior court of Franklin County.
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Ordinance Amending PMC 23.35.070 - 3
(56) Substantial Weight Accorded Responsible Official. The procedural determinations made
by the City’s responsible official shall carry substantial weight in any appeal proceeding under
this chapter.
(67) Record. For any appeal to superior court under this chapter, the City shall provide for a
record that shall consist of the following:
(a) Findings and conclusions;
(b) Testimony under oath; and
(c) A taped or written transcript, the cost of which shall be borne by the appellant;
and
(d) Admitted exhibits.
(78) Exhaustion of Remedies. SEPA appeal procedures, as provided herein, must be utilized
prior to judicial review of the SEPA decision.
(9) Appeal of intermediate steps prohibited. Appeal of the intermediate steps under SEPA
(e.g., lead agency determination, scoping, draft EIS adequacy) shall not be allowed.
(10) One administrative appeal permitted. Only one administrative appeal of a threshold
determination or of the adequacy of an EIS shall be permitted under these rules; successive
administrative appeals on these issues are not allowed. This limitation does not apply to
administrative appeals before another agency.
(11) Scope of appeals limited. Appeals on SEPA procedures shall be limited to review of a
final threshold determination and final EIS. These appeals may occur prior to an agency's final
decision on a proposed action.
(12) Appeal to be consolidated with underlying permitted action. In any appeal, except that of
a threshold determination, the appeal shall consolidate any allowed appeals of procedural and
substantive determinations under SEPA with a hearing or appeal on the underlying governmental
action in a single simultaneous hearing before the Hearing Examiner. This hearing shall be one at
which the Hearing Examiner will consider either the agency's decision or a recommendation on
the proposed underlying governmental action.
(13) Consolidated appeals required. Any appeal of a procedural or substantive determination
under SEPA issued at the same time as the decision on a project action shall be filed within
fourteen (14) days after a notice of decision under RCW 36.70B.130 or after other notice that the
decision has been made and is appealable. In order to allow public comment on a DNS prior to
requiring an administrative appeal to be filed, this appeal period shall be extended for an
additional seven days if the appeal is of a DNS for which public comment is required under this
chapter. For threshold determinations issued prior to a decision on a project action, any
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Ordinance Amending PMC 23.35.070 - 4
administrative appeal shall be filed within fourteen (14) days after notice that the determination
has been made and is appealable.
(14) Conflict with other City rules. In the event any of the SEPA appeal rules conflict with
other sections of Pasco Municipal Code, the SEPA appeal rules shall govern, except for
consolidated appeals. For consolidated appeals, the timelines here shall govern unless PMC
4.02.100 provides for a longer time period, in which case the longer period shall govern.
(15) Conflict with SEPA statute and regulations. In the event any of the City’s SEPA rules
conflict with any portion of WAC 197-11, RCW 43.21C, or RCW 36.70B, the rules contained in
the State statutes and regulations shall govern. [Ord. 3765 § 2, 2006; Ord. 3297 § 8, 1998; Ord.
2886 § 1, 1992; Ord. 2512 § 1, 1984; Code 1970 § 23.07.070.]
Section 2. This ordinance shall take full force and effect five (5) days after its
approval, passage and publication as required by law.
PASSED by the City Council of the City of Pasco, this ______ day of __________ 2021.
Saul Martinez
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ____________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Published: _____________________
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