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HomeMy WebLinkAbout2021.07.12 Council Workshop Packet AGENDA City Council Workshop Meeting 7:00 PM - Monday, July 12, 2021 City Council Chambers & GoToWebinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - 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 - 22 (a) Pasco Public Facilities District (PPFD) - Aquatic Center Update Presentation by Mark Morressette, President, Pasco Public Facilities District 23 - 54 (b) Resolution - Sun Willows Golf Course Ground Lease with CourseCo 55 - 87 (c) Resolution - Accepting a Notice of Intent to Commence Annexation Proceedings (ANX 2021-003) 88 - 123 (d) Resolution - $5M Drinking Water State Revolving Fund Loan - West Pasco Water Treatment Plant (WPWTP) Expansion Project, Phase 1 Page 1 of 140 124 - 134 (e) Resolution - Sole Source Approval - Citywide Traffic Signal Improvements Phase Two Project 6. MISCELLANEOUS COUNCIL DISCUSSION 7. EXECUTIVE SESSION (a) To consider acquisition of real estate per RCW 42.30.110(b) and establish the sales price or lease amount of real estate per RCW 42.30.110(c). 8. ADJOURNMENT 9. ADDITIONAL NOTES 135 - 140 (a) Adopted 2020-2021 Council Goals (Reference Only) (b) REMINDERS • Monday, July 12, 12:00 PM: Pasco Chamber of Commerce Lunch Meeting - Pasco Red Lion • Monday, July 12, 6:00 PM: Old Fire Pension Board - City Hall, Conference Room 1 (Mayor Martinez, Rep.; Mayor Pro Tem Barajas, Alt.) • Thursday, July 15, 3:30 PM: Franklin County Emergency Management Council - EMS Office (Maloney, Rep.; Mayor Martinez, Alt.) • Thursday, July 15, 4:00 PM: Tri-Cities National Park Committee Meeting - 7130 W. Grandridge, Kennewick, WA 99336 (Mayor Martinez, Rep.; Mayor Pro Tem Barajas, Alt.) • Friday, July 16, 10:00 AM: Benton-Franklin Council of Governments - Ben Franklin Transit, 1000 Colubmia Park Trail, Richland, WA 99352 (Alvarado, Rep.; Mayor Pro Tem 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 140 AGENDA REPORT FOR: City Council July 6, 2021 TO: Dave Zabell, City Manager City Council Workshop Meeting: 7/12/21 FROM: Zach Ratkai, Director Administrative & Community Services SUBJECT: Pasco Public Facilities District (PPFD) - Aquatic Center Update I. REFERENCE(S): PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation by Mark Morressette, President, Pasco Public Facilities District III. FISCAL IMPACT: No Direct Financial Impact to the City of Pasco IV. HISTORY AND FACTS BRIEF: In 2002, the Pasco Public Facilities District (PPFD) was formed in order to provide opportunities for the development of public facilities for the community. Throughout its existence, the PPFD has supported regional efforts to provide public facilities in Pasco and the Tri-Cities, and was an integral player in the unsuccessful bid through the Regional Public Facilities District (RPFD) for a regional aquatic center (to be located in Pasco) in 2013. Since the 2013 RPFD effort, the PPFD has continued working to provide an aquatic facility to the City of Pasco and the region at large. Over the last seven (7) years, through significant research, outreach, analysis, and a successful effort to change State law, the PPFD has determined that it is ready to seek a vote of the electorate on November 2, 2021 to consider a proposal to increase the local sales tax rate in Pasco by 0.2% to fund a $40 million bond to construct and operate an indoor/outdoor aquatic facility and a future second phase competition pool. In 2013, the RPFD attempted an effort during the August election to fund and develop an aquatics facility located in Pasco. The regional effort was unsuccessful. Page 3 of 140 It did see substantial support from the Pasco electorate with 57% of residents in favor. A post-election review indicated several concerns that may have contributed to the regional defeat: • Tax averse voters throughout the Tri-Cities. • Original request was a perpetual tax with no termination or "sunset" period. • Voters, mainly in Kennewick and Richland, felt that there was no need for such a facility. • Some felt that there was a conflict with private enterprise, (privately run health clubs). Since 2013, the PPFD unilaterally began working to define a new effort for the development of an aquatic center located in Pasco and scaled to serve the region. Embarking on a significant master planning and outreach effort, a new concept was developed to address some of the concerns from the regional election, while still maintaining the vision of an affordable public aquatic facility to serve the public. This concept was reduced in scope, to assuage any concern of competition with the private health club industry (removal of features such as a weight room, gymnasium, and running track, for example). The concept was also projected to be operated with a limited-term bonding period, meaning that any approval of an increase in sales tax would end as at the time the bonds funding the project are retired. Through the efforts of the City, in 2019 legislation, as outlined in RCW 35.57, was passed which allowed for the PPFD to seek a .2% sales and use tax appropriation as a unilateral agency. This renewed effort would focus on a facility that would be funded through increased sales tax collections for purchases made within the Pasco City Limits. With the change in legislation, the PPFD began refining its research and concept plans for a potential aquatic center. A two -phase indoor/outdoor aquatic facility, with the second phase competition pool, was developed. The breakdown is as follows: Phase I - Indoor Leisure Pool - Outdoor Activity Pool - Wet Classroom/Party Room - Concessional Stand - Locker Rooms, Offices, and Support Space Phase II - Indoor 8-lane Competition Pool (25 yard) The initial phase construction cost, as described above, is estimated (and adjusted for inflation) at $32 million. With the second phase estimated at $15 million for a total project cost of $47 million. Through financial analysis and predicted sales tax Page 4 of 140 trends, a $40million limited-term (25 year) bond will provide adequate funding for development of Phase I, including bond origination costs, land purchase, site development, design, and permitting. The sales tax generated at a rate of .2%, if approved by the voters, would adequately fund the debt service, administration, capital replacement reserve, operations, and supplement shortcomings in gate revenue. Predicted positive fund balance, compounded year after year, would fund the second phase competition pool on its own around Year 15 of the facility without requiring the issuance of additional debt. With the history, research, analysis, and concept development complete, the Pasco Public Facilities District has passed a resolution authorizing an election to be held on November 2, 2021 seeking a 2/10 of 1% (.002) sales and use tax provision for the construction of an aquatic center. V. DISCUSSION: The Pasco Public Facilities District seeks discussion and consideration from the Pasco City Council. Page 5 of 140 Click to edit Master title style 1 Aquatic Center Pasco Public Facilities District July 12, 2021Page 6 of 140 Click to edit Master title style 2 Agenda •History •Aquatic Facility Concept •Financial Analysis Discussion •2013 Election Review •Election Timeline Proposal 2Page 7 of 140 Click to edit Master title style 3 History 3Page 8 of 140 Click to edit Master title style 4 History •Pasco Demographics •City electorate has supported project since 2011 (source: 2011 Community Survey) •72% Supportive of the Center •Regional Aquatic Center was top “Potential Recreation Center” picked (61%) •80% supported either a .2% or .1% tax increase •Pasco is fastest growing city in region with the youngest population •Election and Vote History •2013 Regional Election: 57% Yes Votes from Pasco Residents •Vote failed due to negative voting from Richland and Kennewick •No New Taxes •No Sunset Clause on Tax •Voters Felt no Need •Competition with Private Industry •2019: Legislation Passed for Pasco PFD to move forward on its own 4Page 9 of 140 Click to edit Master title style 5 History •2019-2021: Research and Analysis •Revisions to Original Study •Outlined size of facility, features within, and predictive costs •New Timeline for Vote and, if successful, planning and construction •Financial Analysis 2019 •Why Doesn’t the Private Sector Build This? •August 2019, Private Financial Analysis •Public and Private Facilities Serve Decidedly Different Markets •Finance structure for construction and operation much more feasibile for public agencies. •Financial Analysis 2021 (post-Covid) •Independent 3rd Party •Analysis of Sales Tax History and Projections •Analysis of Predictive Operation costs and Revenue •Timing of Bond, Debt Service, and Timeline 5Page 10 of 140 Click to edit Master title style 6 Aquatic Facility Concept 6Page 11 of 140 Click to edit Master title style 7 Initial Facility 7 •Area Summary Description Phase I Phase II Total Facility Area 46,930sf 13,170sf 60,100sf Total Site Area (SF/Acres) 174,672sf 4 acres 26,688sf .61 Acres 201,360sf 4.61 AcresPage 12 of 140 Click to edit Master title style 8 Facility Amenities 8Page 13 of 140 Click to edit Master title style 9 Phase I Amenities 9Page 14 of 140 Click to edit Master title style 10 Financial Analysis Methodology and Findings 10Page 15 of 140 Click to edit Master title style 11 Financial Analysis •Analyzed •Sales Tax Data (Historical 2005-2020) •Ballard King Feasibility Study •Permitting and Construction Data (2005-2019) •Pasco Aquatic Center Operations Plan (Staffing, revenues, and expenditures) •Assumptions (Phase I) •$40million -25 year bond with revenue from a .2% sales tax approval •4.9% annualized growth sales tax (“middle of the road” prediction) •$2.8 Million annual debt service •Operations in the Future (conservative projections) •Ops at 5% increase (primarily labor) •Revenue at 4% increase 11Page 16 of 140 Click to edit Master title style 12 Financing 12 •Findings: •PFD has the capacity for a $40million Bond •Upon Election, PFD starts collecting .2% (.002) Sales Tax •Revenue from sales tax can accumulate prior to Bond Issuance •Base revenue can be used for bond initiation, land purchase, other start up •Bond issuance •Pays for A&E •Site Development •Facility Development •Initially Phase I facility •Also initiates debt service ($2.8 million/year, for 25 years). •Bond has a sunset –key factor in previous election •Sales Tax Revenue •.2% (.002) Revenue exceeds Expenses for Facility •All 3 scenarios shows a positive fund balance at end of each year (steady accumulation) •Also shows positive growth Page 17 of 140 Click to edit Master title style 13 Financing 13 •Findings: •Initial Costs: Bond Proceeds $40,000,000 Less -Bond broker fees (475,000) Attorney fees Real estate purchase (2,000,000) Closing costs 8.00%(160,000) Development costs (300,000) Const. contingency 10.00%(4,000,000) Facility cost $33,065,000 Bond Sale and Management Bond Counsel $ (100,000) Financial Advisor $(45,000) Dept of Commerce Feasibility Review $ (30,000) Underwriting Fee $ (250,000) City Attorney $ (50,000) TOTAL $ (475,000)Page 18 of 140 Click to edit Master title style 14 Financing 14 •Findings: •First Four Years •Includes Capital Replacement Reserve (within Facility Operating Costs) •Shows that Phase II could conceivably be constructed within 12-15 years with no additional bond •Excess Revenue intended to subsidize operations and fund future Phase II Expansion Facility Operating Costs $0 ($1,109,473)($2,329,894)($2,446,389) Facility Administrative Costs ($26,250)($55,125)($57,881)($60,775) Total Operating Costs ($26,250)($1,164,598)($2,387,775)($2,507,164) Facility Revenus $0 $0 $1,845,723 $1,919,552 ($26,250)($1,164,598)($542,052)($587,612) Bond Sale and Management ($475,000) Land Purchase ($2,000,000) Bond Payment (Debt Service) $0 ($2,838,098)($2,838,098)($2,838,098) TOTAL EXPENSE ($2,501,250)($4,002,696)($3,380,150)($3,425,710) .2% (.002) Sales Tax Revenue to PFD $3,646,391 $3,825,064 $4,012,492 $4,209,105 Excess Revenue (Expense) $1,145,141 ($177,632)$632,342 $783,395 Beginning Cash Balance $0 $1,145,141 $967,509 $1,599,851 Ending Cash Balance $1,145,141 $967,509 $1,599,851 $2,383,246 Page 19 of 140 Click to edit Master title style 15 2013 Election Review •RPFD Vote from 2013 •Unofficial Findings •Region was Tax Averse •Except Pasco voters positively favored. •Concerns of Perpetual Tax •2021 Proposal is a 25-year bond •PFD has a “Sunset” •Conflict with Private Enterprise •Amenities Reduced/Removed •Private Sector Funding for Similar Facility Difficult •Pre-Payment of Bond •Healthy Revenue Projections •Go to Support the Operations •No City Subsidy •Can be saved for Phase II Page 20 of 140 Click to edit Master title style 16 Election Timeline Upcoming Schedule: •July 12th Special PFD Meeting •Resolution Approval •July 12th •City Council Workshop •July 19th •City Council Hearing –Approve Resolution •Aug 3rd –5pm •Filing Deadline •November 2nd Election •No Other Tax Items Proposed* 16Page 21 of 140 Click to edit Master title style 17 Questions or Discussion Page 22 of 140 AGENDA REPORT FOR: City Council July 7, 2021 TO: Dave Zabell, City Manager City Council Workshop Meeting: 7/12/21 FROM: Zach Ratkai, Director Administrative & Community Services SUBJECT: Resolution - Sun Willows Golf Course Ground Lease with CourseCo I. REFERENCE(S): Proposed Resolution Proposed Ground Lease II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Annual Base Rent to City: $100,000 Annual Incentive Rent: 10% of Gross Revenue in Excess of $1,500,000 Annual Capital Replacement Fund: $25,000 IV. HISTORY AND FACTS BRIEF: For the last ten (10) years, the Sun Willows Golf Course has been operated through a management agreement with CourseCo. This agreement provides that CourseCo manages the operations and staffing of the course, while the City maintains all buildings, inventory, and daily accounting. The prior years for Sun Willows has seen robust usage of the course, including a new generation of players regularly playing, but volatility in usage came with weather impacts, smoke from wild fires in the summer, and Covid-19 restrictions. Staff commenced discussions over the last year to discuss how the City and CourseCo could optimize their role in delivering public golf to the community. From this, a ground lease (attached hereto) was drafted. The ground lease separates operational roles for the City and CourseCo in a more prudent manner. The City will own the land, while CourseCo would be in Page 23 of 140 charge and staff including operations, the and maintenance all of golf accounting. This transition ensures steady revenue for the City, frees up Pasco accounting staff time, and allows for a golf-centered company to fully operate Sun Willows. CourseCo will then have more flexibility in promotions, sales, events, tournaments, and business operations.. Within the lease, the City will receive base rent of $100,000/yr, with incentive rent of 10% of the gross revenues above $1,500,000. Additionally, CourseCo will create and contribute to an interest-bearing account for capital repairs, with a $25,000 will nonthree receive Pasco annual City The contribution. of - consecutive days of usage for public events at Sun Willows. Within 6 months, mutual planning for new facilities and improvements to customer facing areas such as the Pro Shop and Restaurant/Snack bar will take place. This will be conducted through a separate agreement. Tentative commencement date will be August 1, 2021. V. DISCUSSION: Staff will present this for discussion and questions. Page 24 of 140 Resolution – Sun Willows Pasco Golf, LLC Lease - 1 RESOLUTION NO. _______ A RESOLUTION APPROVING THE LEASE AGREEMENT WITH SUN WILLOWS PASCO GOLF, LLC, FOR THE PROFESSIONAL MANAGEMENT AND OPERATION OF SUN WILLOWS GOLF COURSE. WHEREAS, the City desires to ensure the highest quality of golf programs for the public; and WHEREAS, the City pursuant to RCW 35A.11.010 may contract and be contracted with, may lease, purchase, receive or otherwise acquire real property for the common benefit of the City; and WHEREAS, the City Council finds that this lease with Sun Willows Pasco Golf, LLC will be for the benefit of the City as it relates to a publicly owned golf course; and WHEREAS, the City desires to improve the existing golf course through its ground lease with Sun Willows Pasco Golf, LLC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City enter into a lease agreement with Sun Willows Pasco Golf, LLC for professional management and full service operation of Sun Willows Golf Course according to said agreement a copy of which is attached hereto and incorporated herein by this reference as Exhibit A; and Be it Further Resolved, that the City Manager is authorized to execute the lease agreement. PASSED by the City Council of the City of Pasco, Washington this ___ day of _____________, 2021. _____________________________ Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ __________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 25 of 140 LEASE AGREEMENT FOR THE PROFESSIONAL MANAGEMENT AND OPERATION OF SUN WILLOWS GOLF COURSE This Lease Agreement, made and executed as of the __ day of ________ 2021, by and between THE CITY OF PASCO, hereinafter referred to as "City" Lessor and Sun Willows Pasco Golf, LLC, , hereinafter referred to as "Lessee." ARTICLE 1 -BACKGROUND 1.1 Intent. To insure the highest quality of golf programs for the public, the City desires to improve the existing Sun Willows Golf Course, located on real property within the County of Franklin, City of Pasco, State of Washington, which is located on the real property, more particularly described on Exhibit A, attached hereto and fully incorporated herein by reference and referred to herein as "the Course" and to provide by lease for the overall professional management and full service operations of the Course, the construction and/or renovation and maintenance of all existing facilities and improvements and the addition of other facilities and improvements, and the collection of fees and other related golf services. Lessee, a golf course owner and operator, desires to provide the professional management services and full service operations for the Course, capital renovation and construction of buildings and facilities in cooperation with the City, maintenance of all facilities and improvements, and the collection of fees and other golf-related Course services for the City Courses described in this Lease. The parties agree that the Course shall be called the Sun Willows Golf Course. Lessee may change the name of the Course only with Lessor's consent, which consent shall not be unreasonably withheld, provided such name is consistent with portraying the Course as a public golf course. 1.2 Objectives for lessee's Performance. City and Lessee agree that the primary objectives for lessee's performance under this Lease are to: (l) operate the Course as intended, including recreation and competitive golf operations along with operations of the pro shop and restaurant facilities, (2) to renovate facilities as indicated in Exhibit C; and (3) to maximize the public use of the Course as well as the revenues to be received by City and the return on Lessee's investment as a result thereof. ARTICLE 2 2.1. "Mayor or Mayor of the City or his designee. "Mayor" or "Mayor of the City or his designee" shall mean the Mayor of the City or his designee of the City of Pasco or an authorized representative thereof. 2.2 Course. "Course" shall mean the Sun Willows Golf Course described in Exhibit A and, as the property is developed pursuant to this Lease, any improvements located thereon from time to time during the term hereof. 2.3 Course Operation. "Course Operation" shall mean the privilege of engaging in the activities authorized herein on the public property at the Course. Course Operation shall include the operation of the Course and its related operations. Page 26 of 140 2.4 Maintenance Standards. "Maintenance Standards," as well as equipment and materials standards, shall mean the standards for maintenance of the Course set forth in the Course Maintenance Standards attached hereto as Exhibit C and found herein in Article 5 and 10. Any changes or revisions in the "Maintenance Standards" are subject to the written approval of the Mayor of the City or his designee prior to implementation. 2.5 Premises. "Premises" or "Leased Premises" or "Demised Premises" shall mean the real property as shown in Exhibit A, the Course and all related facilities, including but not limited to, maintenance and/or service buildings, restaurant(s), and parking spaces, which together comprise the Course, and to any improvements located thereon from time to time during the term hereof, together with all easements, rights of way and licenses reasonably necessary to ingress, egress, utilities and signage necessary or appropriate to construct, maintain and operate the Course. 2.6 Maintenance Buildings. "Maintenance Buildings" shall mean all of the equipment storage space located on the Leased Premises. ARTICLE 3 -PREMISES 3.1 Leased Premises. City hereby leases to Lessee and Lessee leases from City, for the purpose of providing the overall professional management and full service operations of the Sun Willows Golf Course, the construction and maintenance of all facilities and improvements related thereto, and the collection of all fees for Course and other related Course services, those certain premises with the appurtenances, situated in Pasco, Franklin County, Washington, and more particularly described and shown in Exhibit A attached hereto and made a part hereof, that being the real property consisting of the Course and Course related facilities. The City represents that the realty conveyed and the Lessee represents that the constructed Course and all related facilities are or will be, as required above, in material compliance with all federal, state and local environmental and hazardous substance laws, rules and regulations. Lessee shall make no demand upon City for any initial or later construction of any improvement, or development, maintenance or alteration of the premises during the term of this Lease except as expressly provided in this Lease. 3.2 Personal Property/Equipment. The Personal Property/Equipment itemized on Exhibit A-2 shall remain the property of Lessor, but is leased to Lessee pursuant to the terms of this Lease. Lessee, at its sole cost and expense shall insure, repair and maintain the Personal Property/Equipment during the term of this Lease and agrees to keep said Personal Property/Equipment in good condition and repair, normal obsolescence and reasonable wear and tear excepted, and to obtain policies of casualty insurance for such Personal Property/Equipment Lease Agreement Sun Willows Golf Course in an amount equal to their full insurable value naming Lessor and Lessee as co-insureds as their interests may appear. Notwithstanding the fact that Lessor is the owner of the Personal Property/Equipment, during the term of this Lease, Lessee shall have the right to dispose of any of said Personal Property/Equipment provided concurrently Lessee replaces it with additional Personal Property/Equipment having the same or greater value and having substantially the same use. Any Personal Property/Equipment acquired by Lessee in replacement of any of the specific Personal Property/Equipment that is itemized on Exhibit A-2 shall belong to Lessee during the term of this Lease. Upon the expiration or termination of the Page 27 of 140 Lease said Personal Property/Equipment shall be surrendered to Lessor and shall thereupon, without further consideration, belong to Lessor (but subject to wear and tear and to any lease financing which may be applicable to any of the Personal Property/Equipment). Lessee acknowledges that if it acquires any Personal Property/Equipment subject to financing that could extend beyond the terms of this Agreement, then it shall consult with Lessor prior to finalizing such financing arrangements. Any and all additional Personal Property/Equipment acquired by Lessee during the Term for the exclusive use in connection with the operation of the Premises, shall be owned by Lessee during the Term and shall, upon the expiration or termination of this Lease, be surrendered to Lessor and shall thereupon, without further consideration, belong to Lessor (but subject to any lease financing which may be applicable to any of the Personal Property/Equipment). Any and all additional Personal Property/Equipment acquired by Lessee that is not for the exclusive use in connection with the operation of the Premises, shall be owned by Lessee during the Term and shall thereafter remain the property of Lessee and be retained by Lessee upon the expiration or termination of this Lease. Lessor, shall at its cost and expense inventory all items on Exhibit A-2 and provide a value of the Personal Property/Equipment. At the end of this lease the Lessee shall, at Lessee’s cost and expense, provide an inventory list of Personal Property/Equipment. Parties acknowledge that the purpose of these inventory lists is to provide an accounting for the Personal Property/Equipment at the beginning of the Lease, and that at the end of the Lease, the Lessee is agreeing to return the Premises with substantially equal or greater value in the Personal Property/Equipment on hand, subject to depreciation and normal wear. 3.3 Personal Property/Equipment As-Is. Lessee acknowledges that (a) Lessor is not the manufacturer of the Personal Property/Equipment or manufacturer's agent; (b) Lessee has accepted the Personal Property/Equipment based solely on Lessee's inspection, and expressly disclaims any reliance upon any statements or representations made by Lessor, and (c) that the Personal Property/Equipment is of a design, size, fitness and capacity acceptable to Lessee and that Lessee is satisfied that the same is suitable and fit for its use and purposes. Lessee is leasing the Personal Property/Equipment "AS-IS" without warranty, express or implied, including but not limited to the fitness for any particular purpose, use, quality, design, condition, durability, suitability, merchantability or any other matter. Lessee specifically waives all right to make any claim against Lessor for breach of any warranty of any kind whatsoever. Lessee agrees that Lessor is not responsible to Lessee for any loss, damage, claim or expense of any kind or nature caused, directly or indirectly by the Personal Property/Equipment, the use thereof, the failure of operation thereof, the repairs, services, or adjustments thereto or by any interruption of service or loss of business or damage whatsoever and howsoever caused. No defect or unfitness of the Personal Property/Equipment shall relieve Lessee of the obligation to pay rent or of any other obligations under this lease. Additionally, title to any structure, building or improvement affixed to the property shall be considered a fixture to the property and title shall vest in the Lessor ab initio. . B. Annual Reports, Plans and Reviews. To maintain the aesthetic standards and quality required by City with respect to the premises, Lessee shall submit to City thirty (30) days prior to the commencement of each Operating Year after the first Operating Year, a partial year, an annual report describing any improvements made during the previous year and plans for any Page 28 of 140 improvements, upgrading or other changes proposed for the following year, for review by City. City may use such annual report during its yearly inspection of the Leased Premises. Further, as more fully described below, any proposed plans for improvements exceeding a cost of $100,000 shall not be implemented, nor shall capital projects be started, without the prior written request from Lessee and the prior written approval from City. The annual report provided by Lessee shall not be considered a written request that must be separately provided by Lessee. City shall conduct an annual review of the Course Operations in accordance with the maintenance standards as described in Exhibit C and Article 5 and 10. The annual review shall become a part of the permanent record that will assist City in determining Lessee's fulfillment of and compliance with the Lease requirements as well as determining whether Lease options with Lessee should be approved by City. If for any reason the City shall not conduct said annual review, the same is not a breach of the City's duties herein, nor shall such failure to conduct an annual review be construe as causing damage to the Lessee, and shall not in any manner constitute a waiver of the City’s right to conduct an annual review. ARTICLE 4 -TERM 4.1 Initial Term. The Lease term of this Lease shall commence upon the full execution hereof and shall end at midnight on December 31, 2041, unless extended as hereinafter provided or unless terminated as hereinafter provided. 4.2 Possession. Lessee’s right to possession and obligations under the lease shall commence upon the execution of the lease. 4.3 Option to Extend Terms. Lessee is given the option, to extend the term of this Lease for seven (7) additional periods of (10) years ("extended terms") beyond the initial term by giving written notice of the exercise of the option ("option notice") to City at least ninety (90) days but not more than one hundred eighty (180) days before the expiration of the initial term or any extended term. However. Lessee shall have the right to exercise a ten (l0) year extended term prior to one hundred eighty (180) days before the expiration of the initial term or any extended term in the event Lessee needs to extend such term for purposes of financing the improvements of the Course as set forth in Exhibit B and Article 9, or in the event Lessee needs additional time on the term for financing of any improvements pertaining to the Course project. In no event shall Lessee be entitled to renew the term hereof, even though such notice be timely given, unless Lessee shall have timely performed all of its obligations hereunder and shall not be in default in the performance of any thereof, on the date of the expiration of the initial term. The first and second extended terms, if any, shal1 continue on the terms and conditions set out herein, including the payment of rent as set forth in Article 8. 4.4 Holding Over. If Lessee holds over beyond the expiration of any term with consent, express or implied, of the City, such holding over shall only be from month-to-month, subject to the conditions of this Lease, and shall not be a renewal hereof, and shall be at the maximum allowable compensation provided herein, calculated for the number of months and/or days held over, and shall otherwise be on the terms and conditions herein specified, so far as applicable. Page 29 of 140 4.5 Mutual Termination. The parties may, upon mutual agreement expressed in writing, during the initial term of this Lease, or any extension thereof, on not less than one hundred eighty (180) days' notice prior to termination, dissolve and terminate this Lease and the relationship of the parties. City shall not be liable for completion of any construction or renovation initiated by Lessee, or its Lessees, assignees, licensees, concessionaires or permittees, and City shall be held harmless and indemnified therefrom. Page 30 of 140 ARTICLE 5 - LESSEE'S BASIC SERVICE OBLIGATIONS AND OPERATING RESPONSIBILITIES 5.1 Course Operation. Lessee shall operate the Course and related facilities on the premises as a public golf course. Lessee shall, at all times, operate the Course and conduct all operation in a good and businesslike manner and at least comparable to the standards of comparable golf courses. Lessee shall provide services customarily associated with the operation of a golf course and the related facilities, including, without limitation, the rental of golf-related equipment, provision of golf instruction, and sale of golf supplies, apparel and equipment, and operation of food and beverage service. The quality and grade of service shall be equal to or greater than the quality and grade of service to a comparable golf course. The Premises shall be used for no other purpose without the written consent of Lessor, which consent shall not be withheld unreasonably. If Lessee’s use is prohibited by subsequent law or governmental regulation, this Lease shall terminate. 5.2 Days and Hours of Operation. Lessee shall operate the Course and related facilities located on the premises every day of the year at least from dawn to dusk, except in the event of an emergency or inclement weather. Lessee may open the other limited access parts of the Course at other times as it sees fit and at its discretion. 5.3 Use by City for Non-Golf Events. Lessee shall make the Course available for the use of the City, or as directed by the City, for a non-cumulative maximum of 3 days per calendar year on the following conditions. For this purpose, a “day” shall mean a 24-hour period during which more than 50% of golf play is interrupted or displaces by a reason of the City’s use of the Course. A. City shall notify Lessee in writing not less than sixty (60) days in advance of such use and may not schedule such use during, or in conflict with, any other special event of tournament previously scheduled by Lessee. B. Lessee shall receive a rent credit equal to one half (50%) of the daily average gross income for that month multiplied by the number of event days. C. City shall pay all direct costs relating to such use, including, but not limited to clean up, trash removal and disposal, and security services. D. City shall pay for any and all repair and/or replacement of any damage caused during such use, including damage caused by invitees. 5.4 Inventory and FF&E. Without limiting any other provision contained in the lease, Lessee shall, at its sole expense (except for allowable use of the Capital Improvement Fund), acquire and maintain throughout the term sufficient furniture, fixtures, equipment, and inventory as are required to operate the Course and related facilities located on the Premises as contemplated by this lease. 5.5 Golf Carts. Tenant shall provide, through purchase or lease at its sole cost and expense, a sufficient number of golf carts to meet the public demand therefor at the Course. Tenant shall provide all maintenance, repair and service required by such golf carts, and shall replace them as reasonably required or appropriate. Lessee shall charge reasonable market fees for golf cart use. Page 31 of 140 5.6 Golf Course Fees and Prices. The Course and related facilities shall be open to the public at rates established by the lessee. Such rates shall be determined based on the economics of the Course and the competitive market, and may include a temporary surcharge, if needed. Lessee may vary the rates by season, by time of day, and by any other appropriate factor. Lessee may also develop stay and play packages with local hoteliers. City and Lessee will meet and confer if a problem arises with any aspect of the rate structure, as determined by either party. 5.7 Building and Equipment Maintenance. City shall not be obligated to perform any repairs, changes or alterations to the Premises or Improvements, nor shall the City be liable for the cost thereof. Tenant assumes full and sole responsibility for the condition, operation, repair, maintenance and management of the Premises and any permitted Improvements or Alterations, from and after the commencement date; provided, however, this obligation shall not include the assumption of any liability or responsibility by Lessee for the presence of any hazardous materials or underground tanks or the failure of the Premises to comply with any environmental laws, in each case as of the commencement date. In addition, if any portion of the Premises, or the City’s property located on or about the Premises, is damaged, by any of the activities conducted by Lessee or its agents or invitees hereunder, Lessee shall repair any and all such damage and restore the Premises or City’s property to its previous condition. A. Utilities, Roads. City shall be responsible for maintaining and repairing access roads and sewer and water facilities providing sewer and water service to the Premises, except for access roads that are located on the land and sewer and water facilities that solely or primarily benefit the Course. B. Maintenance Standards. Tenant shall perform the maintenance of the green, tees, fairways, rough, cart paths, and other turf areas comprising the Course in accordance with the standards for maintenance as described on Exhibit C. 5.8 Compliance with Laws. Lessee shall comply with all municipal ordinances and all state and federal laws and regulations applicable to Course Operation. Lessee shall not knowingly permit any illegal activities to be conducted on the leased premises. If any permits or licenses are required for the Course Operation or any construction authorized by this Lease, Lessee shall obtain all such required permits or licenses from the appropriate agency before undertaking the regulated activity. Lessee shall correct, at Lessee’s own expense, any failure of compliance created through Lessee’s fault or by reason of Lessee’s use, but Lessee shall not be required to make any structural changes to affect such compliance unless such changes are required because of Lessee’s specific use. 5.9 Compliance with Rules and Regulations. Lessee shall strictly comply with all rules and regulations set forth by any governmental body, agency or instrumentality, including any amendments thereto. Lessee shall correct, at Lessee’s own expense, any failure of compliance created through Lessee’s fault or by reason of Lessee’s use, but Lessee shall not be required to make any structural changes to affect such compliance unless such changes are required because of Lessee’s specific use. 5.10 Lessee's Obligation to Refrain from Discrimination. Lessee shall not discriminate Page 32 of 140 against any person or group of persons on account of race, color, creed, religion, ancestry, national origin, gender or disability in the execution of any activities in this Lease. Neither Lessee itself, nor any person claiming under or through it, shall establish or permit any practice of discrimination in the hiring of staff, selection of vendors and contractors, or in the access to and use of the Course facilities or in the execution of any other activity as permitted through this Lease. 5.11 Signs. Lessee shall not post signs of any kind, nature or size, other than customary signage for directional purposes, traffic control, parking, no littering, and any signs required by any applicable federal state or local laws or regulations, upon the leased premises or improvements thereon without the prior written approval of the Mayor of the City or his designee. 5.12 Utilities. Upon commencement of the term of this Lease, Lessee shall be responsible for, and shall provide and pay for, all utilities serving the leased premises, including but not limited to, water, gas, heat, light, power, telephone service, electricity, sewer and trash removal and other public utilities of every kind furnished to the premises throughout the term hereof, and all other costs and expenses of every kind whatsoever of or in connection with the use, operation, and maintenance of the premises and all activities conducted thereon, and City shall have no responsibility of any kind for any thereof. Lessee waives any and all claims against City for compensation for loss or damage caused by defect, deficiency or impairment of any utility system, including but not limited to, water or irrigation system, water supply system, drainage system, waste system, heating or gas system, electrical apparatus or wires, telephone service, light, power, sewer and trash removal serving the leased premises. If any utility services are provided by or through Lessor, charges to Lessee shall be comparable with prevailing rates for comparable services. If the charges are not separately metered or stated, Lessor shall apportion the charges on an equitable basis, and Lessee shall pay its apportioned share on demand. 5.13 Safety. Lessee shall immediately correct any unsafe condition of the premises, as well as any unsafe practices occurring thereon. Lessee shall use reasonable efforts to obtain emergency medical care for any member of the public who is in need thereof because of illness or injury occurring on the premises. Lessee shall cooperate fully with City in the investigation of any accidental injury or death occurring on the premises, including a prompt written report regarding all major injuries or deaths and deliver such to the Mayor of the City or his designee. Lessee shall immediately report, to the Mayor or his / her designee, any injury whether minor or major and any death occurring on the premises. A major injury is one attended to with, or requiring the service of, emergency personnel. 5.14 Meetings. Representatives of Lessee and City shall meet according to a schedule to be determined by the two parties and at such other times as may be required by City to review Lessee's performance under this Lease and to discuss any problems or matters as determined by City. 5.15 Prices, Goods and Services. Lessee shall at all times maintain a complete list or schedule of the prices charged for all goods and services supplied to the public on or from the premises. Such list or schedule of the prices shall be provided to the Mayor of the City or his designee upon request. Such prices shall be fair and reasonable based on the following considerations: that the Course operation is intended to serve the needs of the public for the goods and services supplied at a fair and reasonable cost; that the prices charged should be comparable Page 33 of 140 to prices charged for similar goods and services in the general area; and that the profit margin should be reasonable considering the cost of providing the goods or services in compliance with the obligations of this Lease. 5.16 Abandonment of Premises. Lessee shall not vacate or abandon the premises at any time during the term hereof; if Lessee shall abandon, vacate or surrender the premises, or be dispossessed by process of law, or otherwise, any personal property belonging to it and left on the premises shall be deemed to be abandoned, at the option of City, except such property as may be encumbered to City. Page 34 of 140 5.17 Right of Entry of the City. Lessee shall permit City , their agents and employees, to enter into and upon the demised premises at all reasonable times for the purpose of inspecting the same, or for the purpose of posting notices of non-responsibility for alterations, additions, or repairs, without any rebate of rent and without any liability to Lessee for any loss of occupation or quiet enjoyment of premises thereby occasioned, and shall permit City and its agents and employees, at any time to place on the demised premises any usual or ordinary "To Let" or "To Lease" signs and exhibit the premises to prospective tenants at reasonable hours. ARTICLE 6 – CAPITAL INVESTMENT; IMPROVEMENTS 6.1 Lessee’s Capital Investment. Lessee shall contribute the initial sum of twenty five thousand US dollars ($25,000) to the Capital Improvement Fund to the establish pursuant to Article 6.3. below. 6.2 Construction of Improvement. Except as otherwise expressly provided in this lease, Lessee shall not construct or install any improvement nor make or permit any alterations in, to, or about the Premises or any improvement, without the City’s prior written consent in each instance, which City shall not unreasonable withhold of delay; provided, however, such requirement to obtain the City’s prior written consent shall not apply to any work that costs twenty five thousand US dollars ($25,000) or less. Subject to the City’s consent as provided above, any permitted improvements or alterations shall be done at the Lessee’s sole expense (i) in strict accordance with plans and specification approved in advance by City in writing, (ii) by Lessee or fully licensed contractors, (iii) in a good and professional manner, and (iv) in strict compliance with all laws, including but not limited to, the adopted building codes at the time of construction. Lessee acknowledges that the City’s role as landlord hereunder is separate and distinct from its role as the issuer of building permits, grading permit, etc., and any permit application by lessee shall, and will, be processed by the City in its normal and ordinary course pursuant to the Pasco Municipal Code (PMC). 6.3 Capital Improvement Program A. On the commencement date Lessee shall, on behalf of the City, establish and maintain a separate, interest-bearing trust account (the “Capital Improvement Fund”) for the funding of capital acquisitions and improvements to the Premises. Commencing on or after July 2, 2021, Lessee and Lessor shall, annually, each separately deposit an amount equal to twenty five thousand US dollars ($25,000). B. All such funds are to be held by Lessee in trust for the benefit of the City’s interest in the Premises, including its reversionary interest in the Premises upon the expiration or earlier termination of this Lease. Interest earned on fund held in such account shall become part of the Capital Improvement Fund and all amounts remaining in the Capital Improvement Fund at the end of the Term or any earlier termination of this lease shall be remitted to the Lessor. Lessor and Lessee will develop written procedures for approval and release of fund from the Capital Improvement Fund, including the accounting and auditing procedures with respect thereto. C. Funds held in the Capital Improvement Fund shall be used exclusively for additional capital items or the repair and replacement of capital items which are needed to Page 35 of 140 repair or replace, over time, capital items which are subject to wearing out after a useful life and which are included in, located on or used in connection with the Premises, and which if not replaced or repaired, could adversely affect the Lessor’s interest upon the expiration or earlier termination of the lease, and for the reimbursement of funds advanced for such purposes by Lessee in accordance with Article 6.3(e) below. Funds held in Capital Improvement Fund may be expended only in accordance with a Capital Improvement Plan approved by the Lessor in accordance with this section. . D. Not later than the first (month) following the creation of the Capital Improvement Fund and thereafter on (Month tbd) of every second year term thereafter, Lessee shall submit to Lessor a biannual plan for the use of the Capital Improvement Fund monies in the subsequent two lease years (each considered a “Capital Improvement Plan”). Each Capital Improvement Plan shall include the description of each proposed expenditure and Capital Improvement Plan monies, the purpose for each expenditure, and the proposed timeframe for such expenditure. Lessor shall review each Capital Improvement Plan and shall not unreasonably withhold its consent thereto. The failure of the Lessor to respond within forty-five (45) days of delivery of any proposed Capital Improvement Plan shall be deemed consent of the Lessor to such plan. E. Notwithstanding the provision hereof, Lessee shall be entitled to be reimbursed (with interest at the prime rate) from the Capital Improvement Fund for any expenditure incurred by Lessee prior to the accumulation of fund for such expenditures in the Capital Improvement Fund if, and to the extent, such expenditures otherwise meet the requirements of Article 6.3(c) and would have been appropriate to be approved (including the approval of the Lessor as provided in subparagraph (c) (above) for inclusion in the Capital Improvement Plan if there had been sufficient funds in the Capital Improvement Fund at the time of such expenditure were made. 6.4 Disruption of Play due to Capital Projects. Certain Lessor projects, including but not limited to street improvements, undergrounding of utilities, etc., may impact access to the Premises or portions of the premises. The Lessor will ensure that Lessor staff and contractors coordinate with Lessee to minimize any negative impacts of these projects, to the extent possible. 6.5 Construction of Pro Shop and Food and Beverage Facility on Premises. Lessee and Lessor agree to commence a feasibility study by a mutually agreed upon third-party consultant within 180-days of the commencement of the lease. The cost of this study to determine the options and economic feasibility of the new clubhouse construction will be a shared expense with lessee and lessor. ARTICLE 7 -CITY'S COVENANTS AND REPRESENTATIONS 7.1 Lessor warrants that it has the right to lease the Premises and will defend Lessee’s right to quiet enjoyment of the Premises from the lawful claims of all persons during the Lease term. 7.2 Governmental Agencies. City has no knowledge of any existing conditions in or about the Property or otherwise which violate any city, county, state or federal law, ordinance or regulation, including but not limited to, regulations related to zoning and use of the Property, and City has not received any notice, written or otherwise from any governmental agency requiring the Page 36 of 140 correction of any condition with respect to the Leased Premises that might be in violation of any law, ordinance or regulation. 7.3 Title to the Real Property, Personal Property and Improvements. City has good and defensible title to the Real property, Intangible Personal Property, Personal Property and Improvements, free and clear of all liens, claims and encumbrances of any nature, except for the existing real property conditions. 7.4 Litigation, Claims or Proceedings. There are no existing or pending actions, suits, litigation, claims, proceedings or governmental investigations with respect to any aspect of any of the Leased Premises, nor, to the knowledge of City, have any such actions, suits, litigation, claims, proceedings or governmental investigations been threatened or asserted. 7.5 Permits. City and Lessee shall cooperate fully with one another as necessary to enable the proper party to procure and/or transfer and maintain all licenses, permits or authorizations necessary for the operation of the Leased Premises. Upon the conversion or termination of this Lease, any permits or licenses will be transferred, as permitted to law, to City, and any expenses incurred with respect thereto shall be an Operating Expense of Lessee. Page 37 of 140 7.6 Warranties. Lessee will maintain all warranties, guarantees, and maintenance contracts on the equipment and furnishings of the Premises and will endeavor to cause the reimbursement of expenses for maintenance, repair and replacement, and for labor and materials associated with all warranted or guaranteed equipment and furnishings utilized in the operation of the Leased Premises. 7.7 Violation of Lease. Neither the execution and delivery of this Lease by City nor City's performance of its obligations hereunder will result in a violation or breach of any term or provision, or constitute a default, or accelerate the performance required under any other agreement or document to which City is a party or is otherwise bound or to which the Leased Premises, or any part thereof, is subject, and will not constitute a violation of any law, ruling, regulation or order to which City is subject. ARTICLE 8 -RENT AND OTHER CONSIDERATIONS 8.1 Minimum Rent to City. The minimum rent due to the Lessor in consideration of this lease shall be One-Hundred Thousand US dollars ($100,000.00) per lease, lessee to commence its obligations herein. Rent shall be paid on a quarterly basis beginning _______ 8.2 Additional Rent to City. The additional rent due to the City in consideration of this Lease shall be ten percent (10%) of the gross revenue in excess of one million five hundred thousand US dollars ($1,500,000), minus the cost of goods sold. (1) The Additional Rent payment shall be annually, with the first payment, due within sixty (60) days after the end of the applicable calendar year during which gross revenues exceeded one million five hundred thousand US dollars (1,500,000). 8.3 Interest on Unpaid Rent. Rent due pursuant to this Article which is not immediately paid when due shall bear interest from the date due until paid at the maximum rate an individual is permitted by law to charge. Notice of late payment is not required but may be provided by City to Lessee. 8.4 Late Charge. Lessee acknowledges a late payment by Lessee to City of any rent payment required by this Article will cause City to incur costs not contemplated by this Lease, the exact amount of which costs is extremely difficult and impractical to fix. Such costs include, without limitation, legal fees, processing and accounting charges. Notice of late payment is not required but may be provided by City to Lessee. The parties agree that this late charge represents a fair and reasonable estimate of the costs City will incur by reason of late payment by Lessee. Other breaches and damages associated therewith may be addressed individually. Acceptance of any late charge shall not constitute a waiver of Lessee's default with respect to the overdue amount or prevent City from exercising any of the other rights and remedies available to City. ARTICLE 9 -INDEMNITY: INSURANCE 9.1 Indemnity. City shall not be liable for any loss, injury, death or damage to persons or property which at any time may be suffered or sustained by Lessee or by any person whomsoever may at any time be using or occupying or visiting the demised premises or be in, on or about the same, whether such loss, injury, death or damage shall be caused by or in any way result from or Page 38 of 140 arise out of any act, omission or negligence of Lessee or of any occupant, subtenant, visitor or user of any portion of the premises, or shall result from or be caused by any other matter or thing whether of the same kind as or of a different kind than the matters or things above set forth, and Lessee shall indemnify City against all claims, liability, loss or damage whatsoever on account of any such loss, injury, death or damage. Lessee hereby waives all claims against City for damages to the building and improvements that are now on or hereafter placed or built on the premises and to the property of Lessee in, on or about the premises, and for injuries to persons or property in or about the premises, from any cause arising at any time. Lessee shall indemnify, hold harmless and assume defense of, in any actions at law or in equity, City, its officers, employees, agents and elected officials and appointive boards from all claims, losses, damages, including property damage, personal injury, including death, and liability of every kind, nature and description arising from or connected with the use of occupancy of leased premises by Lessee or performance of this Lease by Lessee or any person directly under the control of Lessee. Acceptance of insurance certificates or policy endorsements required under this lease does not relieve Lessee from liability under this Section 9.1. This Section 9.1 shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims of damages. 9.2 Insurance. During the term of this Lease, Lessee shall obtain and maintain in full force and effect as a cost of the operation the following insurance coverage: A. Workers' Compensation Insurance. Full workers' compensation insurance necessary in connection with the performance of this Lease to protect Lessee and its employees under the Workers' Compensation Act. Such insurance shall relieve City from all responsibility therefor. B. Liability Insurance. Broad form property damage, personal injury, automobile, employers and comprehensive form liability insurance with carriers acceptable to City in the amount of one million US dollars ($1,000,000) for injury to or death of any one person, and one million US dollars ($1,000,000) for injury to or death of any number of persons in one occurrence, and property damage liability insurance in the amount of one million US dollars ($1,000,000) insuring against all liability of Lessee and its authorized representatives arising out of and in connection with Lessee's use of occupancy of the leased premises; provided that (1) City, its officers, agents and employees shall be added as additional insureds to the policy, (2) the policy shall stipulate that this insurance shall operate as primary insurance, and (3) the policy shall stipulate that no other insurance affected by City or other named insureds will be called upon to cover a loss covered thereunder. All public liability insurance and property damage insurance shall insure performance by Lessee of the indemnity provisions of Section 9.1. Lessee shall file with the Mayor of the City or his designee, within fifteen (15) days of the execution of this Lease, endorsements to its insurance policy that shall provide for the above requirements. Such insurance shall specifically insure Lessee against all liability assumed by it hereunder, as well as liability imposed by law, and shall insure both City and Lessee but shall be so endorsed as to create the same liability on the part of the insurer as though separate policies had been written for City and Lessee. Page 39 of 140 C. Lessee's Fire and other loss Insurance. Lessee, as an operating expense, shall maintain and keep on all its personal property, Lessee's improvements, and alterations in, on or about the leased premises, including but not limited to, buildings and other improvements, a policy of standard fire and extended or other coverage insurance (including but not limited to fire, wind, and vandalism, with sprinkler damage, vandalism and malicious mischief endorsements, to the extent of one hundred percent (100%) of their full replacement value, without reduction for depreciation of Lessee's improvements or alterations if damages, with loss payable to City and Lessee as their interests may appear. Any loss adjustment shall require the written consent of both City and Lessee. In the event of an insured loss, Lessee agrees to use the insurance proceeds to replace and repair the insured loss to the extent required under this Lease. D. Certificate of Insurance. Lessee shall complete and file in the Mayor or his designee's office, within thirty (30) days of the execution of this Lease, and prior to engaging in any operation or activity set forth in this Lease, certificates of insurance which shall provide that no cancellation, major change in coverage or non-renewal by the insurance company will be made during the term of this Lease, without thirty (30) days' written notice to City prior to the effective date of such cancellation or change in coverage. E. City's Right to Pay Premiums on Behalf of Lessee. All insurance policies referred to in this section shall be written in form satisfactory to City and by insurance companies satisfactory to City. Lessee shall pay all of the premiums therefor and deliver such policies, or certificates thereof, to City, and in the event of the failure of Lessee, either to effect such insurance in the names herein called for or to pay the premiums therefor or to deliver such policies, or certificates thereof, to City, City shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor, which premiums shall be repayable to City with the next installment of rental, and failure to repay the same shall carry with it the same consequence as failure to pay any installment of rental. Each insurer mentioned in this section shall agree, by endorsement on the policy or policies issued by it, or by independent instrument furnished to City, that it will give to City sixty (60) days' written notice before the policy or policies in question shall be altered or cancelled. City agrees that it will not unreasonably withhold its approval as to the form or to the insurance companies selected by Lessee. F. Definition of Full Replacement Value. The term "full replacement value" of improvements, as used herein, shall mean the actual replacement cost thereof from time to time less exclusions provided in the normal fire insurance policy. In the event either party believes that the full replacement value (that is to say, the then replacement cost less exclusions) has increased or decreased, it shall have the right, but, except as provided below, only at intervals of not less than two (2) years, to have such full replacement value redetermined by the fire insurance company which is then carrying the largest amount of fire insurance carried on the demised premises (hereinafter referred to as "impartial appraiser"). The party desiring to have the full replacement value so redetermined by such impartial appraiser shall forthwith on submission of such determination to such impartial appraiser give written notice thereof to the other party hereto. The determination of such impartial appraiser shall be final and binding on the parties hereto, and Lessee shall Page 40 of 140 forthwith increase (or may decrease) the amount of the insurance carried pursuant to this section, to the amount so determined by the impartial appraiser. Such determination shall be binding for a period of two (2) years, and until superseded by agreement between the parties hereto or by a subsequent redetermination by an impartial appraiser. Lessee shall pay the fee, if any, of the impartial appraiser. If during any such two (2) year period Lessee shall have made improvements to the premises, City may have such full replacement value redetermined at any time after such improvements are made, regardless of when the full replacement value was last determined. G. Adjustment of Coverage. If City reasonably determines, based on inflation or based on insurance limits customarily maintained by owners and operators of similar property to the Course, that the limits of the personal injury or property damage public liability insurance then carried to be insufficient, City shall raise the limits for such insurance then to be carried and such insurance shall thereafter be carried with the limits thus raised. The expenses of such determination, if any, shall be borne by the Lessee. H. Blanket Insurance Policies. Notwithstanding anything to the contrary contained in this section, Lessee's obligations to carry the insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Lessee; provided, however that the coverage afforded City will not be reduced or diminished or otherwise be different from that which would exist under a separate policy meeting all other requirements of this Lease by reason of the use of such blanket policy of insurance, and provided further that the requirements of the foregoing Paragraph E of this section are otherwise satisfied. I. Cost of Insurance Deemed Additional Rental. The cost of insurance required to be carried by Lessee in this section shall be deemed to be additional rental hereunder. ARTICLE 10 -PROHIBITION OF INVOLUNTARY ASSIGNMENT; EFFECT OF BANKRUPTCY OR INSOLVENCY 10.1 Prohibition of Involuntary Assignment. Neither this Lease nor the leasehold estate of Lessee nor any interest of Lessee hereunder in the demised premises or in the building or improvements thereon shall be subject to involuntary assignment, transfer or sale, or to assignment, transfer or sale by operation of law in any manner whatsoever (except through statutory merger or consolidation, or devise, or intestate succession) and any such attempt at involuntary assignment, transfer or sale shall be void and of no effect. 10.2 Effect of Bankruptcy. Without limiting the generality of the provisions of the preceding Paragraph 10.1 of this section, Lessee agrees that in the event any proceedings under the Bankruptcy Code or any amendment thereto be commenced by or against Lessee, such event shall be deemed to constitute a breach of this Lease by Lessee and shall, at the election of City but not otherwise, without notice or entry or other action of City terminate this Lease and also all rights of Lessee under this Lease and in and to the demised premises and also all rights of any and all persons claiming under Lessee. ARTICLE 11 -ENCUMBRANCE OF CITY'S INTEREST, NON-DISTURBANCE AND ATTORNMENT Page 41 of 140 11.1 No Subordination of Fee Interest. Lessee shall not have the right, at any time during the term of this Lease to subject the fee interest of City in the demised premises, or any part or parts thereof, including all rights and easements appurtenant thereto, to anyone or more mortgages, liens, deeds of trust or other encumbrances of such fee interest. 11.2 Mortgages of Lessee's Interest. Lessee and every successor and assign of Lessee (including, but not limited to, any Lessee of Lessee, but only with City's prior consent) are hereby given the right by City in addition to any other rights herein granted. without City's prior written consent, to mortgage their interests in this Lease, or any part or parts thereof, and assign the Lease, or any part or parts thereof, and any lease(s) as collateral security for such mortgagees), upon the conditions that (i) al1 rights acquired under such mortgagees) shall be subject to each and all of the covenants, conditions and restrictions set forth in this Lease and to all rights and interests of City herein, none of which covenants, conditions or restrictions is or shall be waived by City by reason of the right given so to mortgage such interest in this Lease, except as expressly provided herein and (ii) the proceeds of any such financing shall be used solely to pay costs and expenses related to the Course and improvements thereto. If Lessee and/or City's successors and assigns (including, but not limited to, any Lessee of Lessee, but only with City's prior consent) shall mortgage this leasehold, or any part or parts thereof, and if the holder(s) of such mortgagees) shall, within thirty (30) days of its execution, send to City a true copy thereof, together with written notice specifying the name and address of the mortgagee and the pertinent recording data with respect to such mortgagees), City agrees that, so long as any such leasehold mortgage{s) shall remain unsatisfied of record or until notice of satisfaction is given by the holder(s) to City, the following provisions shall apply: A. There shall be no cancellation, surrender or modification of this Lease by joint action of City and Lessee without the prior written consent in writing of the leasehold mortgagee(s). B. City shall, upon serving Lessee with any notice of default, simultaneously serve a copy of such notice upon the holder(s) of such leasehold mortgagee(s). The leasehold mortgagee(s) shall thereupon have the same period, after service of such notice upon it, to remedy or cause to be remedied the defaults complained of, and City shall accept such performance by or at the instigation of such leasehold mortgagee(s) as if the same had been performed by Lessee. C. Anything herein contained notwithstanding, while such leasehold mortgage(s) remains unsatisfied of record, or until written notice of satisfaction is given by the holder(s) to City, if any default shall occur which, pursuant to any provision of this Lease, entitles City to terminate this Lease, and if, before the expiration of ten (10) days from the date of service of notice of termination upon such leasehold mortgagee(s), such leasehold mortgagee(s) shall have notified City of its desire to nullify such notice and shall have paid to City all rent, additional rent and other payments herein provided for, and then in default, and shall have complied or shall commence the work of complying with all of the other requirements of this Lease, if any are then in default, and shall prosecute the same to completion with reasonable diligence, then in such event City shall not be entitled to terminate this Lease and any notice of termination theretofore given shall be void and of no effect. Page 42 of 140 D. City agrees that the name of the leasehold mortgagee(s) may be added to the "Loss Payable Endorsement" of any and all insurance policies required to be carried by Lessee hereunder on condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the leasehold mortgages, or collateral document shall so provide. E. City, Lessee and any leasehold mortgagee agree that in the event of a default under any leasehold mortgage, the transfer of the lease pursuant to any foreclosure under any leasehold Mortgage (or any transfer in lieu of foreclosure), the assignee or transferee of Lessee's right under the lease shall be subject to City's reasonable approval. Any such assignee must be experienced in the operation of courses (or employ a management company experienced in operating courses). If City does not approve any such proposed assignee which is experienced in operating golf courses (or in employing a management company experienced in operating golf courses) then the City shall operate the course or select the operator for the course, in which case City shall assume the indebtedness owed by Lessee to the leasehold mortgagee and/or shall pay such indebtedness in full. The fair market value of the Improvements will be determined in accordance with Section 11.4 below. F. Lessee agrees that, in the event of termination of this Lease by reason of any lessee default shall enable the City to enter into a new lease of the Demised Premises with the leasehold mortgagee(s) or its nominee(s), for the remainder of the term, effective as of the date of such termination, at the rent and upon the terms, provisions, covenants and agreements as herein contained and subject only to the same conditions of title as this lease is subject to on the date of the execution hereof, and to the rights, if any, of any parties then in possession of any part of the demised premises, provided: (i) Any new lease or transfer for such Mortgagee(s) or its nominee(s) is subject to City's prior written approval, which approval shall include the requirement that the mortgagee or its nominee (or its management company which will operate the Course) is experienced in operating courses and the mortgagee(s) or its nominee must have the financial ability to perform its obligations under the lease. (ii) Said mortgagee(s) or its nominee(s) shall make written request upon City for such new tease within fifteen (15) days after the date of such termination and such written request is accompanied by payment to City of (A) sums then due City under this Lease; and (B) a written, enforceable agreement by which leasehold mortgagee or its nominee agrees to be bound by the terms, provisions, and conditions hereof, in a form reasonably satisfactory to City. (iii) Said leasehold mortgagee(s) or its nominee(s) shall pay to City, at the time of the execution and delivery of said new lease, all sums which would, at the time of the execution and delivery thereof, be due pursuant to this lease but for such termination, and in addition thereto, any expenses, including reasonable attorneys' fees, to which City shall have been subjected by reason of such default. Page 43 of 140 (iv) Said leasehold mortgagee(s) or its nominee(s) shall perform and observe all covenants herein contained to be performed on Lessee's part and shall further remedy any other conditions which Lessee under the terminated lease was obligated to perform under the terms of this lease. (v) Such new lease shall be expressly made subject to the rights, if any, of City under the terminated lease. (vi) Lessee under such new lease shall have the same right obligations related to the buildings and improvements on the demised premises as Lessee had under the terminated lease. G. The proceeds from any insurance policies arising from a condemnation are to be held by any leasehold mortgagee(s) and distributed pursuant to the provisions of this lease, but the leasehold mortgagee(s) may reserve its right to apply to the mortgage debt all, or any part, of Lessee's share of such proceeds pursuant to such mortgages. H. City shall, upon request, execute, acknowledge and deliver to each leasehold mortgagee an agreement prepared at the sale cost and expense of Lessee, in a form reasonably satisfactory to such leasehold mortgagee, between City, Lessee and leasehold mortgagee, agreeing to all of the provisions of this Section 11.2. The term "mortgage," whenever used herein, shall include whatever security instruments are used in the locale of the demised premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term "mortgage," whenever used herein, shall also include any instruments required in connection with a sale- leaseback transaction. 11.3 Estoppel Certificate. At any time and from time to time, but not less than twenty (20) days subsequent to the receipt of a written request by either of them from the other, City and Lessee agree to execute, acknowledge and deliver to the requesting party a statement in writing certifying (i) that this lease is unmodified and is in full force and effect (or if there have been such modifications, that the same is in full force and effect as modified, and stating the modification); (ii) the date to which the rent and other charges have been paid; and (iii) that no notice has been received of any default which has not been cured and, to the best of its knowledge and belief, no default exists (or, if there has been notice or a default exists, a description of same). It is intended that any such statement delivered pursuant to this section may be relied upon by any prospective fee purchaser, any mortgagee or assignee of any mortgage upon the fee or leasehold interest in the demised premises, or any assignee of Lessee if such assignment is approved by City consistent with this lease agreement. ARTICLE 12 -SUBLETTING AND ASSIGNMENT No part of the premises may be assigned, mortgaged, leased, nor may any right of use of any portion of the premises be conferred on any third person by any other means, without the City’s prior written consent. This provision shall apply to all transfers by operation of law. If Page 44 of 140 Lessee is a corporation, Limited Liability Company or partnership, this provision shall apply to any transfer of a majority interest in Lessee’s stock or ownership interest. No consent in one instance shall prevent the provision from applying to a subsequent instance. City shall consent to a transaction covered by this provision when withholding such consent would be unreasonable in the circumstances. In determining whether to consent to assignment, City may consider the financial ability of assignee, business experience of assignee, and any other factors it deems relevant. Lessee may not sublet the premises in whole or in part without City's prior written consent except for vendor negotiated in the ordinary practice of course operations. The making of any such lease shall not release Lessee from, or otherwise affect in any manner, any of Lessee's obligations hereunder. Lessee may allow independent private service companies to enter and conduct business on the premises for the benefit of the Lessee's customers on an as-needed basis without a formal lease or license agreement, provided that the service is occasional and incidental to the Lessee's operation and that any compensation paid to Lessee is included in gross receipts. Lessee may assign this lease to any entity in which Lessee is an owner and a manager. Any other assignment or transfer of this lease, or any interest herein, shall require City’s prior written consent, and consent to an assignment shall not be deemed to be consent to any subsequent assignment. Any such assignment without such consent shall be void and shall, at the option of City, terminate this lease. Neither this lease nor the leasehold estate of Lessee nor any interest of Lessee hereunder in the demised premises or any buildings or improvements thereon shall be subject to involuntary assignment, transfer or sale, or to assignment, transfer or sale by operation of law in any manner whatsoever, and any such attempted involuntary assignment, transfer or sale shall be void and of no effect and shall, at the option of City, terminate this lease. ARTICLE 13 -TAXES AND ASSESSMENTS 13.1 Taxes as Additional Rental. As additional rental hereunder, Lessee shall pay and discharge as they become due, promptly and before delinquency, all taxes, assessments, rates, charges, license fees, municipal liens, levies, excises or imposts, whether general or special, or ordinary or extraordinary, of every name, nature and kind whatsoever, including all governmental charges of whatsoever name, nature or kind, which may be levied, assessed, charged or imposed, or which may become a lien or charge on or against the land hereby demised, or any part thereof, the leasehold or Lessee herein, the premises described herein, any building or buildings, or any other improvements now or hereafter thereon, or on or against Lessee's estate hereby created which may be a subject of taxation, or on or against City by reason of its leasehold of the fee underlying this lease, during the entire term hereof. Lessee shall pay as due all taxes on its personal property located on the premises and all statutory leasehold excise taxes. 13.2 Assessments Affecting Improvements. Specifically, and without in any way limiting the generality of the foregoing, Lessee shall pay all special assessments and levies or charges made by any municipal or political subdivision for local improvements, and shall pay the same in cash as they shall fall due and before they shall become delinquent and as required by the act and proceedings under which any such assessments or levies or charges are made by any municipal or political subdivision. If the right is given to pay either in one sum or in installments, Lessee may elect either mode of payment and its election shall be binding on City. If, by making any such Page 45 of 140 election to pay in installments, any of such installments shall be payable after the termination of this lease or any extended term thereof, such unpaid installments shall be prorated as of the date of termination, and amounts payable after such date shall be paid by City. All taxes and charges under this Section shall be prorated at the commencement and expiration of the term hereof. 13.4 Contesting Taxes. If Lessee shall in good faith desire to contest the validity or amount of any tax, assessment, levy or other governmental charge herein agreed to be paid by Lessee, Lessee shall be permitted to do so, and to defer payment of such tax charge, the validity or amount of which Lessee is so contesting, until final determination of the contest, on giving to City written notice thereof prior to the commencement of any such contest, which shall be at least sixty (60) days prior to delinquency, and on protecting City on demand by a good and sufficient surety bond against any such tax, levy, assessment, rate or governmental charge, and from any costs, liability or damage arising out of any such contest. 13.5 Disposition of Rebates. All rebates on account of any such taxes, rates, levies, charges or assessments required to be paid and paid by Lessee under the provisions hereof shall belong to Lessee, and City will, on the request of Lessee, execute any receipts, assignments or other acquittance that may be received by City. 13.6 Receipts. Lessee shall obtain and deliver receipts or duplicate receipts for all taxes, assessments and other items required hereunder to be paid by Lessee, promptly on payment thereof. ARTICLE 14-LIENS 14.1 Lessee's Duty to Keep Premises Free of Liens. Lessee shall keep the premises and every part thereof and all buildings and other improvements at any time located thereon, other than mortgages or liens on Lessee's interest, which are authorized under Article 11 of this lease, free and clear of any and all mechanics', materialmen's and other liens for or arising out of or in connection with work or labor done, services performed or materials or appliances used or furnished for or in connection with any operations of Lessee, any alteration, improvement or repairs or additions which Lessee may make or permit or cause to be made, or any work or construction, by, for or permitted by Lessee on or about the premises, or any obligations of any kind incurred by Lessee, and at all times promptly and fully to pay and discharge any and all claims on which any such lien mayor could be based, and to indemnify City and all of the premises and all buildings and improvements thereon against all such liens and claims of liens and suits or other proceedings pertaining thereto. 17.2 Contesting Liens. If Lessee desires to contest any such lien, it shall notify City of its intention to do so within ten (10) days after the filing of such lien. In such case, and provided by Lessee shall on demand protect City by a good and sufficient surety bond against any such lien and any cost, liability or damage arising out of such contest, Lessee shall not be in default hereunder until ten (l0) days after the final determination of the validity thereof, within which time Lessee shall satisfy and discharge such lien to the extent held valid; but the satisfaction and discharge of any such lien shall not, in any case, be delayed until execution is had on any judgment rendered thereon, and such delay shall be a default of Lessee hereunder. In the event of any such contest, Lessee shall protect and indemnify City against all loss, expense and damage resulting Page 46 of 140 therefrom. ARTICLE 15 -DEFAULT 15.1 Except as to the provisions of Articles 8 and 12 hereof, , Lessee shall not be deemed to be in default hereunder unless City shall first give to Lessee thirty (30) days' written notice of such default, and Lessee fails to cure such default within that thirty (30) day period. Lessee shall be deemed to be in default upon failure to pay any rent or other charge within thirty (30) days after it is due. Lessee's Default. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Lessee: A. Lessee's abandonment or vacation of the premises; or B. Lessee's failure to pay any rent or charges required to be paid by Lessee under this Lease where such failure continues for thirty (30) days after notice from City that such sum is past due; or C. Lessee's failure to, promptly and fully keep and perform, or a violation by Lessee of, any of the covenants, conditions or agreements contained in this lease where such failure continues for thirty (30) days after written notice from City to Lessee; or D. The levy of a writ of attachment or execution on this lease or on any of Lessee’s property located on the premises which is not released or terminated within thirty (30) days; or E. The making by Lessee of a general assignment for the benefit of creditors, or of an arrangement, composition, extension or adjustment with its creditors; or F. The filing by or against Lessee of a petition for relief or other proceeding under the federal bankruptcy laws or state or other insolvency laws; or G. The failure of Lessee to pay any other sum of money due hereunder within thirty (30) days after notice from City that the same is past due. H. Lessee’s failure to construct and maintain facilities as required herein. I. Lessee’s failure to make any payments or maintain or provide records as required herein. J. Lessee’s failure to perform any material provision of this agreement. 15.2 In the event of Lessee’s default under this lease, City, in addition to the other rights or remedies it may have, shall have the immediate right of re-entry and may remove all persons and property from the premises; such property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account of Lessee. Should City elect to re-enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice Page 47 of 140 provided for by law, City may either terminate this Lease or it may from time to time, without terminating this Lease, re-let the demised premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental or rentals and on such other terms and conditions as City in the sole discretion of City may deem advisable with the right to make alterations and repairs to the demised premises. On each such re-letting (a) Lessee shall be immediately liable to pay to City, in addition to any indebtedness other than rent due hereunder, the expenses of such re-letting and of such alterations and repairs, incurred by City, and the amount, if any, by which the rent reserved in this Lease for the period of such re-letting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the demised premises for such period on such re-letting; or (b) at the option of City, rents received by such City from such re-letting shall be applied first, to the payment of any indebtedness, other than rent due hereunder from Lessee to City; second, to the payment of any expenses of such re-letting and of such alterations and repairs; third, to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by City and applied in payment of future rent as the same may become due and payable hereunder. If Lessee has been credited with any rent to be received by such re- Letting under option (a) hereof, an such rent shall not be promptly paid to City by the new tenant, or if such rentals received from such re-letting under option (b) hereof during any month is less than that to be paid during that month by Lessee hereunder, Lessee shall pay any such deficiency to City. Such deficiency shall be calculated and paid monthly. No such re-entry or taking possession of the demised premises by City shall be construed as an election on the part of City to terminate this Lease unless a written notice of such intention is given to Lessee or unless the termination thereof is decreed by a court of competent jurisdiction. Notwithstanding any such re- letting without termination, City may at any time thereafter elect to terminate this Lease . Should City at any time terminate this Lease for any breach, in addition to any other remedy it may have, City may recover from Lessee all damages incurred by reason of such breach, including the cost of recovering the premises, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this lease for the remainder of the stated term over the then reasonable rental value of the premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Lessee to City. 15.3 City's Right to Perform. In the event that Lessee by failing or neglecting to do or perform any act or thing herein provided by it to be done or performed, shall be in default hereunder and such failure shall continue for a period of thirty (30) days after written notice from City specifying the nature of the act or things to be done or performed, then City may, but shall not be required to, do or perform or cause to be done or performed such act or thing (entering on the demised premises for such purposes, if City shall so elect), and City shall not be or be held liable or in any way responsible for any loss, inconvenience, annoyance or damage resulting to Lessee on account thereof, and Lessee shall repay to City on demand the entire expense thereof, including compensation to the agents and employees of City. Any act or thing done by City pursuant to the provision of this section shall not be or be construed as a waiver of any such default by Lessee, or as a waiver of any covenant, term or condition herein contained or the performance thereof, or of any other right or remedy of City, hereunder or otherwise. All amounts payable by Lessee to City under any of the provisions of this Lease, if not paid when the same become due as is in this Lease provided, shall bear interest from the date they become due until paid at the rate of eight percent (8%) per annum, compounded annually. ARTICLE 16 -REMEDIES Page 48 of 140 16.1 Remedies. In the event of Lessee's default hereunder, and in addition to any other rights or remedies City may have under this Lease or under law, City may elect: A. To immediately terminate this lease and Lessee's right to possession of the premises by giving written notice to Lessee and (I) to recover from Lessee an award of damages equal to the sum of the unpaid rental which had been earned at the time of termination, (2) to recover any other amount necessary to compensate City for all the detriment either proximately caused by Lessee's failure to perform Lessee's obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, and (3) to recover all such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time under applicable law; or B. To have this lease continue in effect for so long as City does not terminate this Lease and Lessee's right to possession of the premises, in which event City shall have the right to enforce all of the rights and remedies provided by this Lease and by law. including the right to recover the rental and other charges payable by Lessee under this Lease as they become due; or C. To have a receiver appointed to collect rent and conduct Lessee's business. Neither the filing of a petition for the appointment of a receiver nor the appointment itself shall constitute an election by City to terminate this Lease; or D. To exercise any or all of the remedies set forth in this Lease. 19.2 Right of Entry and Expenses of Lessee's Default. If Lessee shall default in the performance of any obligation on Lessee's part to be performed under this lease, City may, following reasonable notice to Lessee, enter the premises and perform the same for Lessee's account with City personnel and equipment or with the services of a private contractor. If City at any time is compelled or elects to pay or incur any cost or expense (including, but not limited to, reasonable attorneys' fees) by reason of Lessee's default, Lessee shall, upon demand, pay to City as additional rental the amount of such costs and expenses, together with interest at the maximum rate set forth in this lease from and after the date paid or incurred. 16.3 Partial Payment: Allocation of Payments. No Lessee payment or receipt by City of a lesser amount than the rent and charges provided for in this lease shall be deemed to be other than on account of the earliest due rent or charges. No endorsement or statement on any check or letter accompanying any check or payment shall be an accord and satisfaction, and City may accept any such check of payment without prejudice to City's right to recover the balance of the rent and charges due hereunder or pursue any other remedy provided in the lease or by law. City shall have the absolute right in its sole discretion to apply any Lessee payment received to any other Lessee account or payment obligations then delinquent. 16.4 City's Default. In the event City fails to perform any covenant, condition or agreement contained in this Lease within thirty (30) days after Lessee’s written notice specifying such default or, where City's default cannot reasonably be cured within thirty (30) days and City fails to commence to cure within that period, then City shall be liable to Lessee for any damages sustained by Lessee resulting from City's breach. Lessee shall not have the Page 49 of 140 right to terminate this lease or to withhold, reduce or offset any amount against any payments of rents or charges due and payable under this Lease, except as may be specifically provided herein. Lessee shall not have, and hereby waives, any claim against City for money damages arising by reason of any refusal, withholding or delay by City in giving any consent, approval or statement of satisfaction. City will not unreasonably withhold any such consent, approval or statement of satisfaction. Lessee's only remedies for any such refusal, withholding or delay shall be an action for specific performance, injunction or declaratory judgment. ARTICLE 17 -EFFECT OF EMINENT DOMAIN A. Effect of Total Condemnation. In the event the entire demised premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, this lease shall terminate and expire as of the date of such taking, and Lessee shall thereupon be released from any liability thereafter accruing hereunder and Lessee shall receive all condemnation awards applicable to the improvements constructed and paid for by Lessee on the demised premises as set forth in subparagraph C below. B. Effect of Partial Condemnation. In the event a portion of the demised premises shall be so appropriated or taken and the remainder of the property shall not be suitable for the use then being made of the property by Lessee, or if the remainder of the property is not one undivided parcel of property, Lessee shall have the right to terminate this Lease as of the date of such taking on giving to City written notice of such termination within thirty (30) days after City has notified Lessee in writing that the property has been so appropriated or taken and Lessee shall receive all condemnation awards applicable to the improvements constructed and paid for by Lessee on the demised premises as set forth in subparagraph C below. In the event of such partial taking and Lessee does not so terminate this lease, then this lease shall continue in full force and effect as to the part not taken, and the rental to be paid by Lessee during the remainder of the term, subject to adjustment as provided in the rental adjustment provisions of Section Three above, shall be determined in the manner hereinabove provided for in such rental adjustment provisions, and any such determination shall not affect or change the times at which City may require an adjustment in rent under such provisions, provided, however, that the words "which in no event shall be less than the rental then being paid by Lessee" appearing in such rental adjustment provisions shall not apply with respect to such determination, but shall apply with respect to any subsequent adjustment under such rental provisions. Page 50 of 140 C. Condemnation Award. In the event of the termination of this lease by reason of the total or partial taking of the premises by eminent domain, then in any such condemnation proceedings City and Lessee shall be free to make claim against the condemning or taking authority for the amount of any damage done to them, respectively, as a result thereof. In the event of a partial taking of the premises and this lease is not terminated, then Lessee shall have the right to make claim against the condemning or taking authority for only the un-amortized cost of the improvements placed on the demised premises by Lessee and located thereon at the time of the taking or appropriation, which improvements shall be deemed to have been amortized in equal annual amounts over the period commencing with the date of completion of such improvements at an assumed interest sale equal to twelve percent (12%) per year. ARTICLE 18 -MISCELLANEOUS PROVISIONS 18.1 Waiver. Any City waiver of, or failure to take action with respect to any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition, or subsequent breach of the same, or any other term, covenant, or condition therein contained. City’s subsequent acceptance of rent hereunder shall not be deemed to be a waiver of any preceding Lessee breach of any term, covenant, or condition of this lease, other than the Lessee’s failure to pay the particular rental so accepted, regardless of City's knowledge of such preceding breach at the time of acceptance of such rent. No covenant, term or condition of this Lease shall be deemed to have been waived by City, unless such waiver be in writing by City. 18.2 Transfer of Security. If any security Lessee provides to secure the faithful performance of all or any of the covenants of this lease on Lessee’s behalf, City may transfer or deliver the security, as such, to the purchaser of the reversion, in the event that the reversion be sold, and thereupon City shall be discharged from any further liability in reference thereto. 18.3 Independent Contractor. It is understood by and between the parties hereto that Lessee, in the performance of this Lease, shall act as, and be, an independent contractor and not an agent or employee of City. The parties agree and acknowledge neither have any intention to create a joint venture or partnership relation between Lessor and Lessee and the same is hereby expressly disclaimed by both. 18.4 Timely Implementation. The parties hereto agree to immediately and diligently proceed with their respective duties as set forth herein to the end that the course will be managed and operated in a satisfactory manner. 18.5 Factors Beyond Lessee's Control. Lessee is not responsible for damages and will not be in default or deemed to be in default by reason of strikes, lockouts, accidents or acts of God, or City failure to furnish timely information or to approve or disapprove Lessee's work promptly, or delay or faulty performance of City, other contractors or governmental agencies, or any other delays beyond Lessee's reasonable control. 18.6 Surrender. Upon expiration of the term hereof, or earlier termination or cancellation as herein provided, Lessee shall peaceably vacate the premises and any and all improvements Page 51 of 140 located herein and deliver up the same to City in a reasonably good condition, ordinary wear and tear excepted. subject to the other provisions of this lease. Lessee shall pay the rent and all other sums required to be paid by Lessee hereunder in the amounts, at the times, and in the manner herein provided, and shall keep and perform all the terms and conditions hereof on its part to be kept and performed. In the event of the non-performance by Lessee of any of the covenants of Lessee undertaken herein, this lease may be terminated as herein provided. The voluntary or other surrender of this lease by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of City, terminate all or any existing leases or subtenancies (unless otherwise agreed by the City in writing), or may, at the option of City, operate as an assignment to it of any or all such leases or subtenancies. 18.7 Administration. The City and the Mayor of the City or his designee shall be responsible for the administration of this lease on behalf of City and shall be assisted therein by those officers and employees of City having duties in connection with the administration thereto. 18.8 Attorneys' Fees. If any action at law or in equity shall be brought to recover any rent under this lease, or for or on account of any breach of, or to enforce or interpret any of the covenants, terms, or conditions of this Lease, or for the recovery of the possession of the demised premises, the parties shall be responsible for their own costs and attorneys' fees and shall not be allowed to recover same from the other party. 18.9 Notices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, certified mail. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other party shall be addressed to the party for whom intended as follows: THE CITY OF PASCO: LESSEE: Page 52 of 140 Either party may change its address by notifying the other party of the change of address. Notice shall be effective when received. Notice shall be deemed received within seventy-two (72) hours from the time of mailing if mailed as provided in this section. 18.10 Exhibits. All exhibits referred to, whether or not they are attached to this Lease, are incorporated herein by reference. 18.11 Number and Gender. Whenever the singular is used in this lease and when required by the context, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders, and the word "person" shall include corporation, firm or association. 18.12 Tables of Contents and Captions. The table of contents and captions of this lease are not a part of this lease and shall have no effect upon the construction or interpretation of any part of this lease. 18.13 Covenants and Conditions. Each term and each provision, including, without limitation, the obligation for the payment of rental to be performed by Lessee or City as the case may be, shall be construed to be both a covenant and a condition of this lease. 18.14 Binding. Except as otherwise provided herein, each of the terms, covenants, and conditions of this lease shall extend to and be binding on and shall inure to the benefit of not only City and Lessee but to each of their respective heirs, administrators, executors, successors and assigns. Whenever in this lease reference is made to either City or Lessee, the reference shall be deemed to include, wherever applicable, the heirs, administrators, executors, successors and assigns of such parties, the same as if in every case expressed, and all of the parties hereto shall be jointly and severally liable hereunder. 18.15 Interpretation. This lease shall be construed and interpreted in accordance with the laws of the State of Washington. The language in all parts of this lease shall be in all cases construed simply according to its fair meaning, and not strictly for or against City. 18.16 Entire Agreement. This lease, and any exhibits or addenda attached hereto and forming a part hereof, including the RFP and the proposal by Lessee, set forth all the covenants, agreements and conditions between City and Lessee concerning the premises, the building and other improvements, and there are no covenants, agreements or conditions either oral or written between them other than as are herein set forth. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this lease shall be binding upon City or Lessee unless reduced to writing and signed by the party to be charged with their performance. 18.17 Time of the Essence. Time is of the essence of this lease, and of each and every covenant, term, condition, and provision hereof. 18.18 Section Captions. The captions appearing under the section number designations of this lease are for convenience only and are not a part of this lease and do not in any way limit or amplify the terms and provisions of this lease. Page 53 of 140 ARTICLE 19 -LIST OF EXHIBITS Exhibit A -Description of Premises Obligations ARTICLE 20 -MEMORANDUM OF LEASE The City and Lessee agree to execute and record a memorandum of this lease in the Register's Office of Franklin County, Washington evidencing the terms of this lease, which memorandum of lease shall include, without limitation, a description of the term of the lease and any renewal of extension options set forth herein. IN WITNESS WHEREOF, the parties have hereunto set their hands as of the date first above written. CITY OF PASCO: SUN WILLOWS PASCO GOLF, LLC: ________________________ ________________________________ Dave Zabell, City Manager Michael Sharp, President ATTEST: APPROVED AS TO FORM: ________________________ _________________________________ Debra Barham, CMC Kerr Ferguson Law PLLC City Clerk Page 54 of 140 AGENDA REPORT FOR: City Council July 7, 2021 TO: Dave Zabell, City Manager City Council Workshop Meeting: 7/12/21 FROM: Rick White, Director Community & Economic Development SUBJECT: Resolution - Accepting a Notice of Intent to Commence Annexation Proceedings (ANX 2021-003) I. REFERENCE(S): Proposed Resolution to Consider Annexation Overview Map Vicinity Map Notices of Intent to Commence Annexation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The City received three Notices of Intent to Commence Annexation from the owners of property located north of Burns Road between Road 44 and Convention Drive. The Notices of Intent were combined for processing as one request and contain sufficient signatures to initiate the annexation process. Notices of Intent are required to contain the signatures of property owners representing at least ten (10) percent of the assessed value of an area proposed for annexation. In this case, the Notices of Intent contain the signatures of owners representing approximately 73.63% of the assessed value within the proposed annexation area, as described and depicted in the draft Resolution. Page 55 of 140 Staff recommends the inclusion of four additional parcels, two owned by Pasco School District #1 (Parcels #114330047 and 114330046) and two owned by Fred Olberding (Parcels 114330045 and 114330048), to the requested annexation in order to obtain contiguity with current City limits an d to consolidate annexation efforts. Staff has also removed a portion of parcel 114250016 in alignment with with the approved Urban Growth Boundary as it accommodates the Airport Clear Zone #2. V. DISCUSSION: The petition method of annexation is a two-step process requiring the submittal of a Notice of Intent to Commence Annexation Proceedings, followed at a later date by an actual Annexation Petition. Upon receipt of a Notice of Intent to Commence Annexation the Council is required by law to set a date to hold a public meeting to consider: 1. Whether the City will accept, reject, or geographically modify the proposed annexation; 2. Whether it will require the simultaneous adoption of a proposed zoning regulation; and 3. Whether it will require the assumption of all or any portion of existing city indebtedness by the area to be annexed. The next available date for a public meeting is August 16, 2021. Following Council review of the proposed annexation and passage of a resolution, generally accepting the boundary, staff will prepare the annexation petition. Upon return of the petition it will be forwarded to the County Assessor for certification. Following the certification a date will be set for a public hearing f or Council to formally consider the annexation. Page 56 of 140 Resolution – Proposed Olberding & Farm 2005 Annexation - 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, ACCEPTING A NOTICE OF INTENT TO COMMENCE ANNEXATION PROCEEDINGS FOR THE OLBERDING & FARM 2005 ANNEXATION, PROVIDING A DETERMINATION ON THE BOUNDARY TO BE ANNEXED, AND WHETHER SIMULTANEOUS ZONING AND THE ASSUMPTION OF BONDED INDEBTEDNESS WILL BE REQUIRED. WHEREAS, the owners of a property in a portion of the Northwest corner of Section 8, Township 9 North, Range 30 East, Willamette Meridian., have filed a Notice of Intent to Commence Annexation Proceedings to the City of Pasco; and WHEREAS, the City Council of the City of Pasco has reviewed the Notice of Intent and has determined the annexation site is within the Pasco Urban Growth Area, annexation of the site would be a natural extension of the City and said annexation would the in best interest of the Pasco community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, DOES RESOLVE AS FOLLOWS: That the City will accept the proposed territory to be annexed as described in Exhibit A and depicted in Exhibit B attached hereto. Be It Further Resolved, that the territory to be annexed will not require simultaneous adoption of zoning regulations. Zoning will be determined through a public hearing process with input from affected property owners. Be It Further Resolved, that the annexation area will be required to assume a proportionate share of existing City bonded indebtedness. PASSED by the City Council of the City of Pasco, Washington this ____ day of ____________, 2021. Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 57 of 140 Exhibit A  Legal Descriptions Olberding & Farm 2005 Annexation (ANX 2021‐003)  114330031 SHORT PLAT 2020‐31 PARCEL B  114330041 "THAT PARCEL OF LAND LOCATED IN A PORTION OF THAT CERTAIN PARCEL OF LAND  CONVEYED AS PARCEL C BY DEED RECORDED UNDER AUDITOR’S FILE NUMBER 1838729 RECORDS OF  FRANKLIN COUNTY, WASHINGTON, LOCATED IN A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE  29 EAST, WILLAMETTE MERIDIAN, FRANKLIN COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS;  BEGINNING AT THE NORTHWEST COMER OF THE SOUTHEAST QUARTER OF SAID SECTION 3; THENCE  SOUTH 01°55’20” WEST ALONG THE WEST LINE OF SAID DEEDED PARCEL C, 772.18 FEET; THENCE SOUTH  01°09’09” WEST ALONG THE WEST LINE OF SAID DEEDED PARCEL C, 574.63 FEET TO THE SOUTH LINE OF  THE NORTHWEST QUARTER OF SAID SOUTHEAST QUARTER; THENCE NORTH 89°26’04” EAST ALONG THE  SOUTH LINE OF SAID NORTHWEST QUARTER, 1323.71 FEET TO THE SOUTHEAST COMER THEREOF;  THENCE NORTH 01°55’38” EAST ALONG THE EAST LINE OF SAID NORTHWEST QUARTER, 1346.19 FEET TO  THE NORTH LIEN OF SAID DEEDED PARCEL; THENCE NORTH 89°02’15” WEST ALONG THE NORTH LINE OF  SAID DEEDED PARCEL C, 406.65 FEET; THENCE SOUTH 88°49’09” WEST ALONG THE NORTH LINE OF SAID  DEEDED PARCEL C, 925.06 FEET TO THE POINT OF BEGINNING;”  114330042 "THAT PARCEL OF LAND LOCATED IN A PORTION OF THAT CERTAIN PARCEL OF LAND  CONVEYED AS PARCEL C BY DEED RECORDED UNDER AUDITOR’S FILE NUMBER 1838729 RECORDS OF  FRANKLIN COUNTY, WASHINGTON, LOCATED IN A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE  29 EAST, WILLAMETTE MERIDIAN, FRANKLIN COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS;  BEGINNING AT THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 3; THENCE  SOUTH 01°55’56” WEST ALONG THE EAST LINE OF SAID SOUTHEAST QUARTER, 1336.10 FEET TO THE  SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF SAID SOUTHEAST QUARTER; THENCE SOUTH  89°26’04” WEST ALONG THE SOUTH LINE OF SAID NORTHEAST QUARTER OF SAID SOUTHEAST QUARTER,  1331.43 FEET TO THE SOUTHWEST COMER THEREOF; THENCE NORTH 01°55’38” EAST ALONG THE WEST  LINE OF SAID NORTHEAST QUARTER THE SOUTHEAST QUARTER, 1346.19 FEET TO THE NORTH LINE OF  SAID DEEDED PARCEL C; THENCE SOUTH 89°02’15” EAST ALONG THE NORTH LINE OF SAID DEEDED  PARCEL C, 203.61 FEET; THENCE NORTH 89°40’16” EAST ALONG THE NORTH LINE OF SAID DEEDED PARCEL  C, 1127.58 FEET TO THE POINT OF BEGINNING;”  114330043 "THAT PARCEL OF LAND LOCATED IN A PORTION OF THAT CERTAIN PARCEL OF LAND  CONVEYED AS PARCEL C BY DEED RECORDED UNDER AUDITOR’S FILE NUMBER 1838729 RECORDS OF  FRANKLIN COUNTY, WASHINGTON, LOCATED IN A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE  29 EAST, WILLAMETTE MERIDIAN, FRANKLIN COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS;  BEGINNING AT THE SOUTHWEST COMER OFT HE SOUTHEAST QUARTER OF SAID SECTION 3; THENCE  NORTH 89°11’53” EAST ALONG THE SOUTH LINE OF SAID SOUTHEAST QUARTER, 1331.56 FEET TO THE  SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF SAID SOUTHEAST QUARTER; THENCE NORTH 01  °55’38” EAST ALONG THE EAST LINE OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER,  1341.60 FEET TO THE NORTHEAST COMER THEREOF; THENCE SOUTH 89°26’04” WEST ALONG THE NORTH  LINE OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER, 1323.71 FEET TO THE WEST LINE OF  SAID DEEDED PARCEL C; THENCE SOUTH 01°09’09” WEST ALONG THE WEST LINE OF SAID DEEDED PARCEL  C, 525.68 FEET; THENCE SOUTH 02°57’09” WEST ALONG THE WEST LINE OF SAID DEEDED PARCEL C,  821.93 FEET TO THE POINT OF BEGINNING;”  Page 58 of 140 114330044 "THAT PARCEL OF LAND BEING THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER  OF SECTION 3, TOWNSHIP 9 NORTH, RANGE 29 EAST, WILLAMETTE MERIDIAN, FRANKLIN COUNTY,  WASHINGTON, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEAST CORNER OF SAID SOUTHEAST  QUARTER OF SECTION 3; THENCE NORTH 01°55’56” EAST, ALONG THE EAST LINE OF SAID SOUTHEAST  QUARTER OF THE SOUTHEAST QUARTER, 1336.10 FEET TO THE NORTHEAST CORNER THEREOF; THENCE  SOUTH 89°26’04” WEST ALONG THE NORTH LINE OF SAID SOUTHEAST QUARTER OF THE SOUTHEAST  QUARTER, 1331.43 FEET TO THE NORTHWEST COMER THEREOF; THENCE SOUTH 01°55’38” WEST ALONG  THE WEST LINE OF SAID SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER, 1341.60 FEET TO THE  SOUTHWEST COMER THEREOF; THENCE NORTH 89°11’53” EAST ALONG THE SOUTH LINE OF SAID  SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER, 1331.56 FEET TO THE POINT OF BEGINNING;”  114330045 "A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE 29 EAST, W.M., FRANKLIN  COUNTY, WASHINGTON, ALSO BEING A PORTION OF 'PARCEL D' AS SHOWN ON FRANKLIN COUNTY  RECORD OF SURVEY FOR SEGREGATION RECORDED IN VOLUME 3 OF SURVEYS AT PAGE 649, UNDER  AUDITOR’S FILE NUMBER 1837780, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST  CORNER OF SAID SECTION 3 AND SAID 'PARCEL D'; THENCE ALONG THE WEST LINE OF SAID SECTION 3,  NORTH 0°54'52"" EAST A DISTANCE OF 1357.86 FEET TO THE TRUE POINT OF BEGINNING; THENCE  CONTINUING ALONG THE WEST LINE OF SAID SECTION, NORTH 00°54'52” EAST A DISTANCE OF 1357.86  FEET TO THE NORTHWEST CORNER OF SAID 'PARCEL D’ AND THE NORTHWEST CORNER OF THE  SOUTHWEST QUARTER OF SAID SECTION 3; THENCE LEAVING SAID WEST LINE, NORTH 89°41'26” EAST  ALONG THE NORTH LINE OF SAID 'PARCEL D’ A DISTANCE OF 933.25; THENCE CONTINUING ALONG SAID  NORTH LINE NORTH 89°23'50” EAST A DISTANCE OF 397.17 FEET TO A POINT OF INTERSECTION WITH THE  EAST LINE OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 3; THENCE  LEAVING SAID NORTH LINE, SOUTH 00°54’59” WEST ALONG SAID EAST LINE A DISTANCE OF 1330.40 FEET  TO THE SOUTHEAST CORNER OF SAID NORTHWEST QUARTER OF THE SOUTHWEST QUARTER; THENCE  SOUTH 88°25’18"" WEST ALONG THE SOUTH LINE OF SAID NORTHWEST QUARTER OF THE SOUTHWEST  QUARTER A DISTANCE OF 1331.28 FEET TO THE TRUE POINT OF BEGINNING."  114330046 “A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE 29 EAST, W.M., FRANKLIN  COUNTY. WASHINGTON, ALSO BEING A PORTION OF 'PARCEL D' AS SHOWN ON FRANKLIN COUNTY  RECORD OF SURVEY FOR SEGREGATION RECORDED IN VOLUME 3 OF SURVEYS AT PAGE 649, UNDER  AUDITOR’S FILE NUMBER 1837780, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST  CORNER OF SAID SECTION 3 AND SAID 'PARCEL D'; THENCE ALONG THE WEST LINE OF SAID SECTION 3,  NORTH 00°54'52” EAST A DISTANCE OF 2715.72 FEET TO THE NORTHWEST CORNER OF SAID 'PARCEL D’  AND THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER 0F SAID SECTION 3; THENCE LEAVING SAID  WEST LINE, NORTH 89°41’26”EAST ALONG THE NORTH LINE OF SAID 'PARCEL D' A DISTANCE OF 933.25  FEET; THENCE CONTINUING ALONG SAID NORTH LINE NORTH 89°23'50” EAST A DISTANCE OF 397.17 FEET  TO A POINT OF INTERSECTION WITH THE WEST LINE OF THE NORTHEAST QUARTER OF THE SOUTHWEST  QUARTER OF SAID SECTION 3 AND THE TRUE POINT OF BEGINNING: THENCE CONTINUING ALONG SAID  NORTH LINE NORTH 89°23’50" EAST A DISTANCE OF 518.80 FEET; THENCE CONTINUING ALONG SAID  NORTH LINE NORTH 86°39’02”EAST A DISTANCE OF 813.71 FEET TO THE CENTER OF SAID SECTION 3 AND  THE NORTHEAST CORNER OF SAID ’PARCEL D'; THENCE SOUTH 01°55'07” WEST ALONG THE EAST LINE OF  SAID ’PARCEL D’ A DISTANCE OF 771.98; THENCE CONTINUING ALONG SAID EAST LINE SOUTH 00°08'56”  WEST A DISTANCE OF 574.47 FEET TO A POINT OF INTERSECTION WITH THE PROJECTED SOUTH LINE OF  SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE LEAVING SAID EAST LINE, SOUTH  Page 59 of 140 88°25'18” ALONG SAID SOUTH LINE AND THE EASTERLY PROJECTION THEREOF A DISTANCE OF 1339.01  FEET TO THE SOUTHWEST CORNER OF THE NORTH‐EAST QUARTER OF THE SOUTHWEST QUARTER OF  SAID SECTION 3; THENCE NORTH 00°54'59”EAST ALONG THE WEST LINE OF SAID NORTH‐EAST QUARTER  OF THE SOUTHWEST QUARTER A DISTANCE OF 1330.40 FEET TO THE POINT OF BEGINNING.”  114330047 “A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE 29 EAST, W.M., FRANKLIN  COUNTY, WASHINGTON, ALSO BEING A PORTION OF 'PARCEL D' AS SHOWN ON FRANKLIN COUNTY  RECORD OF SURVEY FOR SEGREGATION RECORDED IN VOLUME 3 OF SURVEYS AT PAGE 649. UNDER  AUDITOR’S FILE NUMBER 1837780, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST  CORNER OF SAID SECTION 3 AND SAID 'PARCEL D'; THENCE ALONG THE SOUTH LINE OF SAID SECTION 3  AND THE SOUTH LINE OF SAID 'PARCEL D', NORTH 88°10'57” EAST A DISTANCE OF 1331.49 FEET TO THE  SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 3  AND THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID SOUTH LINE, NORTH 00°54'59” EAST ALONG  THE WEST LINE OF SAID SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER A DISTANCE OF 1352.30  FEET TO THE NORTHWEST CORNER OF SAID SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER;  THENCE NORTH 88°25'18” EAST ALONG THE NORTH LINE OF SAID SOUTHEAST QUARTER OF THE  SOUTHWEST QUARTER AND THE EASTERLY PROJECTION THEREOF A DISTANCE OF 1339.01 FEET TO A  POINT OF INTERSECTION WITH THE EAST LINE OF SAID ’PARCEL D'; THENCE SOUTH 00°08'5‘6" WEST  ALONG THE EAST LINE OF SAID 'PARCEL D’ A DISTANCE OF 525.54 FEET; THENCE CONTINUING ALONG  SAID EAST LINE, SOUTH 01°56’56” WEST A DISTANCE OF 821.71 FEET TO THE SOUTHEAST CORNER OF  SAID 'PARCEL D' AND THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION; THENCE  SOUTH 88°10'57” WEST ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION A  DISTANCE OF 1331.49 FEET TO THE POINT OF BEGINNING.”  114330048 “A PORTION OF SECTION 3, TOWNSHIP 9 NORTH, RANGE 29 EAST, ALSO BEING PARCEL D  AS SHOWN ON FRANKLIN COUNTY RECORD OF SURVEY UNDER AUDITOR’S FILE NUMBER 1899129,  DESCRIBED AS FOLLOWS: THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER SECTION 3,  TOWNSHIP 9, NORTH, RANGE 29 EAST, WM, FRANKLIN COUNTY WASHINGTON.”  “114250016 “The Southwest ¼ of Section 2, Township 9 North Range 29 East, exclusive of that portion intersecting with Tri-Cities Airport Clear Zone #2, as depicted in Exhibit B”  Page 60 of 140 CITY LIMITS CITY LIMITS ROAD 68SANDIFUR P K W YROAD 68 NCLARK RD BURNS RDTAYLORFLAT SRDZ o n e 4 Z o n e 1 Z o n e 2 Z o n e 2 Zo n e 2 Zone 3 Zone 3Zone 5Zone 5 114250016 114330031 114330044 114330042114330041 114330043114330047 114330046114330045 114330048 Urban Growth Boundary Urban Growth Boundary Urban Growth Bounda r y 0 1,000 2,000 3,000 4,000500 Feet "Exhibit B" Item: Olberding & Farm 2005 Annexation Applicants: Allen & Cheryl Olberding & Steve West/Farm 2005 File #: ANX 2021-003 ANX 2021-003 City Option 01 City Limits UGA 2021 COP.SDE.Airport_Clear_Zone Layer Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6Page 61 of 140 CITY LIMITS CITY LIMITS ROAD 68SANDIFUR P K W YROAD 68 NCLARK RD BURNS RDTAYLORFLAT SRDZ o n e 4 Z o n e 1 Z o n e 2 Z o n e 2 Zo n e 2 Zone 3 Zone 3Zone 5Zone 5 114250016 114330031 114330044 114330042114330041 114330043114330047 114330046114330045 114330048 Urban Growth Boundary Urban Growth Boundary Urban Growth Bounda r y Benton County WA, Pasco GIS, Maxar 0 1,000 2,000 3,000 4,000500 Feet 0 1,000 2,000 3,000 4,000500 Feet Overview Map Item: Olberding & Farm 2005 Annexation Applicants: Allen & Cheryl Olberding & Steve West/Farm 2005 File #: ANX 2021-003 ANX 2021-003 City Option 01 City Limits UGA 2021 COP.SDE.Airport_Clear_Zone Layer Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6Page 62 of 140 CITY LIMITS CITY LIMITS ROAD 68CLARK RD Z o n e 4 Zone 1Z o n e 2 Z o n e 2 Zo n e 2Zone 3Zone 3114250016 114330031 114330044 114330042114330041 114330043114330047 114330046114330045 114330048 Urban Growth Boundary Urban Growth Boundary U rb an Growth Bou n d a r y Benton County WA, Pasco GIS, Maxar 0 1,000 2,000 3,000 4,000500 Feet 0 1,000 2,000 3,000 4,000500 Feet Vicinity Map Item: Olberding & Farm 2005 Annexation Applicants: Allen & Cheryl Olberding & Steve West/Farm 2005 File #: ANX 2021-003 ANX 2021-003 City Option 01 City Limits UGA 2021 COP.SDE.Airport_Clear_Zone Layer Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6Page 63 of 140 RECEIVED MAY 2 8 2021 COMMUNITY & ECONOMIC NOTICE OF INTENTION TO COMMENCE ANNEXATIO �PMENT ------1 TO: The City Council of the City of Pasco 525 North Third Avenue Pasco, Washington 99301 Council Members: The undersigned, who are the owners of not less than ten percent in value, according to the assessed valuation for general taxation of the property for which annexation is sought, hereby advise the City Council of the City of Pasco that it is the desire of the undersigned owners of the following area to commence annexation proceedings. The property herein referred to is described on Exhibit "A" attached hereto and is depicted on Exhibit "B" further attached hereto. It is requested that the City Council of the City of Pasco set a date not later than sixty days after the filing of this request for a meeting with the undersigned to determine: (1)Whether the City Council will accept the proposed annexation; and, (2)Whether the City Council will require the assumption of existing City indebtedness by the area to be annexed; and, (3)Whether the City Council will require simultaneous zoning. This page is one of a group of pages containing identical text material and is intended by the signers of this Notice of Intention to be presented and considered as one Notice of Intention and may be filed with other pages containing additional signatures which cumulatively may be considered as a single Notice of Intention. Page 64 of 140 Legal Description -Olberding Project (Master File #ANX 2021-003) Property located in the Southeast quarter of Section 3 Township 9 North, Range 29 East, Willamette Meridian, Franklin County, Washington, comprising four tax parcels described as follows: PARCEL A: 114-330-041 That parcel of land located in a portion of that certain parcel of land conveyed as Parcel C by deed recorded under Auditor's File No. 1838729 records of Franklin County, Washington, located in a portion of Section 3, Township 9 North, Range 29 East, Willamette Meridian, Franklin County, Washington, described as follows: Beginning at the Northwest corner of the Southeast quarter of said Section 3; Thence South 01 °S5'20" West along the West line of said deeded Parcel C, 772.18 feet; Thence South 01°09'09" West along the West line of said deed Parcel C, 574.63 feet to the South line of the Northwest quarter of said Southeast quarter; Thence North 89 °26'04" East along the South line of said Northwest quarter, 1323.71 feet to the Southeast corner thereof; Thence North 01 °55'38" East along the East line of said Northwest quarter, 1346.19 feet to the North line of said deeded Parcel C; Thence North 89 °02'15" West along the North line of said deeded Parcel C, 406.65 feet; Thence South 88°49'09" West along the North line of said deeded Parcel C, 925.06 feet to the Point of Beginning. PARCEL B: 114-330-042 That parcel of land located in a portion of that certain parcel of land conveyed as Parcel C by deed recorded under Auditor's File No. 1838729 records of Franklin County, Washington, located in a portion of Section 3, Township 9 North, Range 29 East, Willamette Meridian, Franklin County, Washington, described as follows: Beginning at the Northeast corner of the Southeast quarter of said Section 3; Thence South 01 °55'56" West along the East line of said Southeast quarter, 1336.10 feet to the Southeast corner of the Northeast quarter of said Southeast quarter; Thence South 89°26'04" West along the South line of said Northeast quarter of said Southeast quarter, 1331.43 feet to the Southwest corner thereof; Thence North 01 °55'38" East along the West line of said Northeast quarter of the Southeast quarter, 1346.19 feet to the North line of said deeded Parcel C; Thence South 89 °02'15" East along the North line of said deeded Parcel C, 203.61 feet; Thence North 89 °40'16" East along the North line of said deeded Parcel C, 1127.58 feet to the Point of Beginning. Parcel C: 114-330-043 That parcel of land located in a portion of that certain parcel of land conveyed as Parcel C by deed recorded under Auditor's File No. 1838729 records of Franklin County, Washington, located in a portion of Section 3, Town ship 9 North, Range 29 East, Willamette Meridian, Franklin County, Washington, described as follows: Beginning at the Southwest corner of the Southeast quarter of said Section 3; Thence North 89°11'53" Est along the South line of said Southeast quarter 1331.56 feet to the Southeast corner of the Southwest quarter of said Southeast quarter; Thence North 01 °55'38" East along the East line of said Southwest quarter of the Southeast quarter, 1341.60 feet to the Northeast corner thereof; Thence South 89 °26'04" West along the North line of said Southwest quarter of the Southeast quarter of the Southeast quarter, 1323. 71 feet to the West line of said deeded Parcel C; Thence South 01°09'09" West along the West line of said deeded Parcel C, 525.68 feet; Thence South 02°57'09" West along the West line of said deeded Parcel C, 821.93 feet to the Point of Beginning. Page 1 Page 65 of 140 Exhibit "A" Legal Description -Olberding Project (Master File #ANX 2021-003) PARCEL D: 114-330-044 That parcel of land being the Southeast quarter of the Southeast quarter of Section 3, Township 9 North, Range 29 East, Willamette Meridian, Franklin County, Washington, described as follows: Beginning at the Southeast corner of said Southeast quarter of Section 3; Thence North 01 °55'56" East along the East line of said Southeast quarter of the Southeast quarter, 1336.10 feet to the Northeast corner thereof; Thence South 89"26'04" West along the North line of said Southeast quarter of the Southeast quarter, 1331.43 feet to the Northwest corner thereof; Thence South 01 °55'38" West along the West line of said Southeast quarter of the Southeast quarter, 1341.60 feet to the Southwest corner thereof; Thence North 89 °11'53" East along the South line of said Southeast quarter of the Southeast quarter, 1331.56 feet to the Point of Beginning. Page2 Page 66 of 140 Overview Map Item: Olberding Annexation Applicant: RP Development File#: ANX 2021-003 l-======,-11\/Yi Rd Page 67 of 140 Affidavit of Signature for Annexation Notice of Intent and Petition Under the pe»alty of perjury, I de7iaJ� under oath, tha ) am authorized to sign deeds and encumbrance,s on behalf of fi//G/U ;((i,:£-.. ,✓v b and I am further authorized (c5 sign other documents including Notices of Intent and Petitions. State of Washington County of TuV\kDO ): ss. ) Date I certify that I know or have satisfactory evidence that .L..!..l......,..�_..,.__.......,......,_,-'-""".,__ is the person who appeared before me, and said person acknowledged that (he/she) signed this i trument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it as the ·md.\\/\d\la.] of PC'Lsc.o, Wf\ tobe the free and voluntaryact of such party for the uses and purposes mentioned in the instrument. Given under my hand and official seal this tD day of 'fY\f-'-�---�=---..c...,A----------'' 2020 ,,,,,,1111111,,,,, �'''c,"SEY J IA,,,,,,. � r. • • • .-.'"Jlf/< � #" . • �o,tm,t�,i; ·• >-. � � •• � 01-2,3 -.:l "«-:� � :: • N Q.,, 'to• � -- • 0]'.,, '""P ,. 0 "(/1 � = : ' ·,,9), 7:.: = = . ,0 ·� oo. = �� ·., v8l1c : � �y •• : � �� ·. .· s-� l""I. •!'2o11-na0.• � �,.�IA. o • • • • • � ,❖ :1,,,;'�SH/NG�O ,,,,,11111111111\\\\\\ NOTARY PUBLIC i nd for the State of Washington Residing at: ct'.)CJ,_Y)Y\,OX� My Commission Expires: 1-::l 9.:;b\ ! (1M) j /-""13/2,'--( Page 68 of 140 Affidavit of Signature for Annexation Notice of Intent and Petition Under the penalty of perjury, I d dare und r oath, that I am authorized to sign deeds and encumbrances on behalf of ¼ and I am further authorized to sign other documents inc cling Notices of Intent and State of Washington County o(BeY\&J)Y) ): ss. ) / I certify that I know or have satisfactory evidence that � · is the person who appeared before me, and said person acknowledged that (he/she) s ned this instr ment, on oath stated that (he/she) was au:orized to execute the instrument and acknowledged it as the 1oct1v1du�L of 1/(),<,c01L:VA tobe the free and voluntaryact of such party for the uses and purposes mentioned in the instrument. NOTARY PUBLI n and for the State of Washington Residing at: '1::xnnVLRK'Tu V\ .k:' ...My Commission Expires: \ \ 7/� l™ I ' Page 69 of 140 1.Please print your name in addition to signing. Page 70 of 140 MEYER, FLUEGGE & TENNEY, P.S. DENNIS L. FLUEGGE ROBERT C. TENNEY MARK D. WATSON* JEROME R. AIKEN* JOHN A. MAXWELL, JR. PETER M. RITCHIE** JAMES C. CARMODY *Also admitted in Oregon **Also admitted in Virginia June 1, 2021 Jeff Adams City of Pasco Planning Department 525 North Third Avenue Pasco, WA 99301 ATTORNEYS & COUNSELORS 230 SOUTH SECOND STREET, SUITE 101 P.O. BOX 22680 YAKIMA, WASHING TON 98907-2680 Re: Notice of Intent to Annex -Allen & Cheryl Olberding Franklin County Assessor Parcel No. 114-330-031 Dear Mr. Adams: SEAN M. WORLEY JACOB A. LARA KINDRA K. CRAWFORD *DEREK L. GAUTHIER ROBERT S. URLOCKER OF COUNSEL GARY E. LOFLAND carmod y@mftlaw.com I have enclosed the Notice of Intent to Annex on behalf of Allen & Cheryl Olberding. The original Notice is attached as Attachment A. We would request that all correspondence with respect to the annexation be directed to the undersigned. My email address is carmody@mftlaw.com. Thank you for your consideration. Very truly yours, ME E LUEGGE & TENNEY, P.S. �[E � re u \YI rem l1l] JUN O 2 2021 w By6\,� t'.� �Telephone 509-575-8500 • Fax 509-575-4676 • www.mftlaw.com Page 71 of 140 Page 72 of 140 NOTICE OF INTENTION TO COMMENCE ANNEXATION PROCEDURES TO: The City Council of the City of Pasco 525 North Third A venue Pasco, Washington 99301 Council Members: The undersigned, who are the owners of not less than ten percent in value, according to the assessed valuation for general taxation of the property for which annexation is sought, hereby advise the City Council of the City of Pasco that it is the desire of the undersigned owners of the following area to commence annexation proceedings. The property herein referred to is described on Exhibit "A" attached hereto and is depicted on Exhibit "B" further attached hereto. It is requested that the City Council of the City of Pasco set a date not later than sixty days after the filing of this request for a meeting with the undersigned to determine: (1)Whether the City Council will accept the proposed annexation; and, (2)Whether the City Council will require the assumption of existing City indebtedness by the area to be annexed; and, (3)Whether the City Council will require simultaneous zoning. This page is one of a group of pages containing identical text material and is intended by the signers of this Notice oflntention to be presented and considered as one Notice oflntention and may be filed with other pages containing additional signatures which cumulatively may be considered as a single Notice of Intention. Page 73 of 140 MAYRA VALDOVINOS-GARCIA Notary Public State of Washington Commission# 188668 My Expires Nov 29, 2024 Page 74 of 140 State of Washington ) ) ss. County of Y.akitna ) �\t(l I certify that I know or have satisfactory evidence that Cheryl Olberding is the person who personally appeared before me and that said person acknowledged that they signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. Dated this /l J"i---" day of June, 2021. MAYRA VALDOVINOS-GARCIANotary Public State of WashingtonCommission # 188668My Comm. Exptres Nov 29, 2024 Page 75 of 140 EXHIBIT A LEGAL DESCRIPTION Franklin County Assessor Parcel No. 114-330-031 Parcel B, Short Plat 2020-31, according to the plat thereof recorded in Volume 2 of Short Plats, Page 387, records of Franklin County, Washington. THIS LEGAL DESCRIPTION IS BASED UPON WHAT IS COMMONLY KNOWN OF RECORD. Page 76 of 140 Overview Map MELODY LNW2 0 l'--0 <( 0 0:: KAUTRAILRD 0 0:: I f­w co <( N ::i w APPLICANT: OLBERDING OWNER: OLBERDI NG CITY LIMITS / Page 77 of 140 Page 78 of 140 1.Please print your name in addition to signing. Address Date Page 79 of 140 MEYER, FLUEGGE & TENNEY, P.S. DENNIS L. FLUEGGE ROBERT C. TENNEY MARK D. WATSON* JEROME R. AIKEN* JOHN A. MAXWELL, JR. PETER M. RITCHIE** JAMES C. CARMODY *Also admitted in Oregon **Also admitted in Virginia June 1, 2021 Jeff Adams City of Pasco Planning Department 525 North Third A venue Pasco, WA 99301 ATTORNEYS & COUNSELORS 230 SOUTH SECOND STREET, SUITE IOI P.O. BOX 22680 YAKIMA, WASHINGTON 98907-2680 Re: Intent to Annex-Farm 2005, LLC Franklin County Assessor Parcel No. 114-250-016 Dear Mr. Adams: SEAN M. WORLEY JACOB A. LARA KINDRA K. CRAWFORD *DEREK L. GAUTHIER ROBERT S.URLOCKER OF COUNSEL GARY E. LOFLAND carmody@mftlaw.com I have enclosed the Notice of Intent to Annex on behalf of Farm 2005, LLC. The original Notice is attached as Attachment A. We would request that all correspondence with respect to the annexation be directed to the undersigned. My email address is carmody@mftlaw.com. Thank you for your consideration. E & TENNEY, P.S. Enclosures 1� lE ms [E a w [E � lill JUN O 2 2021 w By\�& , -,:';;.)� Telephone 509-575-8500 • Fax 509-575-4676 • www.mftlaw.com Page 80 of 140 Page 81 of 140 NOTICE OF INTENTION TO COMMENCE ANNEXATION PROCEDURES TO: The City Council of the City of Pasco 525 North Third Avenue Pasco, Washington 99301 Council Members: The undersigned, who are the owners of not less than ten percent in value, according to the assessed valuation for general taxation of the property for which annexation is sought, hereby advise the City Council of the City of Pasco that it is the desire of the undersigned owners of the following area to commence annexation proceedings. The property herein referred to is described on Exhibit "A" attached hereto and 1s depicted on Exhibit "B" further attached hereto. It is requested that the City Council of the City of Pasco set a date not later than sixty days after the filing of this request for a meeting with the undersigned to determine: ( 1)Whether the City Council will accept the proposed annexation; and, (2)Whether the City Council will require the assumption of existing City indebtedness by the area to be annexed; and, (3)Whether the City Council will require simultaneous zoning. This page is one of a group of pages containing identical text material and is intended by the signers of this Notice oflntention to be presented and considered as one Notice oflntention and may be filed with other pages containing additional signatures which cumulatively may be considered as a single Notice of Intention. Page 82 of 140 Affidavit of Signature for Annexation Notice of Intent and Petition Under the penalty of perjury, I declare under oath, that I am authorized to sign deeds and encumbrances on behalf of Farm 2005, LLC and I am further authorized to sign other doc uments incl ing Notices of Intent and Petition. FA By: Date �, STATE OF WASHINGTON ) ) ss. County of ¥ftlttma "Bur�/'I I certify that I know or have satisfactory evidence that Steve West is the person who appeared before me, and signed this instrument, on oath stated that they were authorized to execute the instrument and acknowl­ edged it as a Member of Farm 2005, LLC, a Washington limited liability company, to be the free and voluntary act of such limited liability company for the uses and purposes mentioned in this instrument. Dated: June _/_, 2021. NANCY HIRAI NOTARY PUBLIC #49019 STATE OF WASHINGTON COMM1SSION EXPIRES JULY 22, 2024 � 5-»"rt?--.J PrimedN� NOTAR UBLIC Residing at: ,fM�L Ul'I My Commission Expires: 4/4 �-F /7 Page 83 of 140 EXHIBIT A LEGAL DESCRIPTION THIS LEGAL DESCRIPTION IS BASED UPON LAST DEED OF RECORD Page 84 of 140 CLARK RD JANET RD IVYRD MELODYLN Page 85 of 140 114330049 ) / 114330042 f 40.89 LBERDING, ALLEN (� ,_) '\__----444.250016 � 63.'Rio ( \ F�M 2005 LLC J ✓ r\ J t FARM 2005 LLC Page 86 of 140 1.Please print your name in addition to signing. Page 87 of 140 AGENDA REPORT FOR: City Council June 28, 2021 TO: Dave Zabell, City Manager City Council Workshop Meeting: 7/12/21 FROM: Steve Worley, Director Public Works SUBJECT: Resolution - $5M Drinking Water State Revolving Fund Loan - West Pasco Water Treatment Plant (WPWTP) Expansion Project, Phase 1 I. REFERENCE(S): Resolution Loan Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: The City was awarded a $5,050,000 loan to partially fund the design and construction of the West Pasco Water Treatment Plant (WPWTP) Expansion Project, State Washington the administered by Phase loan The One. is Department of Health (DOH) as part of their Drinking Water State Revolving Fund program. The loan has a 20-year term with an effective interest rate of 1.75%. The loan fee is 1% ($50,000) and is included in the loan amount. IV. HISTORY AND FACTS BRIEF: Since July 2020, City staff and its consultant, RH2 Engineering, have been working on the design of the proposed upgrades for the WPWTP Expansion Project #16008. These expansion upgrades were earlier identified in the Comprehensive Water System Plan (CWSP), approved by the Department of Health in 2019, and segregated into several phases to meet the growing demands for water supply in the City. The planned expansion of the WPWTP will include improvements to the raw water intake, pre-treatment system, residuals handling system, backup power system, high service pumps, and additional membrane-filtration units. These improvements are planned for incremental expansion from the existing plant Page 88 of 140 capacity of 6 million gallons per day (MGD), to 12 MGD and then to an ultimate production capacity of 18 MGD. The overall expansion will be achieved in phases. Phase one improvements will focus on the core improvements for the expansion of the plant, to accommodate for the 12MGD capacity which will consist of the following: • Construction of clarifiers and residual recovery system for 12MGD. • Addition of 2 new membrane racks, • Modification to existing membrane racks, • Addition of 2 new strainers, • Electrical and controls update • Site improvements to accommodate the expansion of the facility. V. DISCUSSION: Staff recommends approval of the $5M Drinking Water State Revolving Fund Loan from the Washington State Department of Health for the WPWTP Expansion Project, Phase 1. The total estimated cost of the Phase 1 project is currently $9.7M. Page 89 of 140 Resolution – Washington State Department of Health Loan Agreement for WPWTP Expansion – Page 1 RESOLUTION NO. _______ A RESOLUTION AUTHORIZING EXECUTION OF A $5 MILLION DOLLAR LOAN AGREEMENT WITH THE WASHINGTON STATE DEPARTMENT OF HEALTH (WSDOH) FOR THE WEST PASCO WATER TREATMENT PLANT (WPWTP) EXPANSION PHASE ONE PROJECT. WHEREAS, the WPWTP Expansion Project is a multi-phase project that will increase treatment capacity and improve resiliency and redundancy of the potable water system for Pasco; and WHEREAS, Phase one of the project will include necessary upgrades to the WPWTP, including: additional membrane treatment units, filter–to-waste piping, new clarifier and equipment for residuals handling and recycling, and telemetry and control system; and WHEREAS, to help fund these improvements the City applied for and received a $5 million dollar low-interest State Revolving Fund (SRF) loan from the WSDOH; and WHEREAS, to make the Washington State Department of Health loan funds available, execution of the attached Loan Agreement is required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: The City Council of the City of Pasco hereby authorizes the City Manager for the City of Pasco to execute the Loan Agreement with the Washington State Department of Health, a copy of which is attached hereto and incorporated herein by this reference as Exhibit A; and to make minor substantive changes as necessary to execute the Agreement; and Be It Further Resolved that this Resolution shall be in full force and effect upon adoption. PASSED BY the City Council of the City of Pasco, Washington this ____ day of July 2021. ________________________________ Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 90 of 140 June 30, 2021 City of Pasco Maria Laura Serra, PE P.O. Box 293 525 North Third Avenue Pasco, WA 99031 serram@pasco-wa.gov RE: Loan Contract Number: DWL26037 Dear Maria Laura Serra; Enclosed is the Drinking Water State Revolving Fund Loan Contract Number identified above for your signature. The Loan Contract details the terms and conditions that will govern the agreement between us, which includes the project's Scope of Work as a formal attachment. Failure to return the contracts within 60 calendar days of the date of this letter may result in your loan offer being withdrawn. Review, print and sign the document. Once signatures are obtained, scan and return by email to dohcon.mgmt@doh.wa.gov or print and sign a hard copy, and return the originals to us for full execution. Please note that the U.S. Environmental Protection Agency is the funding source for this program and the Catalog of Federal Domestic Assistance (CFDA) number is 66.468. Consequently, the loan funds are federal and subject to both state and federal requirements. A non-refundable one-percent loan administration fee will be collected at contract execution (If applicable), including any subsequent amendments where funds are added. The loan amount may be modified to include an amount sufficient to cover the one-percent loan administration fee. In most cases, the fee will be collected in full at contract execution. Please review the terms and conditions of the Loan Contract and all attachments carefully for details. A requirement of the DWSRF program is that you must maintain updated project records and yearly renewal of your registration in the System for Award Management at www.sam.g ov. Another requirement of the DWSRF program is that all entities are required to verify that the federal government has not suspended or debarred them from receiving federal funds. This includes, but is not limited to, project contractors, subcontractors, engineers, architects, consultants, and equipment vendors. The Exclusion Report can be accessed at www.sam.gov. Failure to provide this required certification may result in termination of your loan contract. After the Loan Contracts have been signed by the Department or its designee, one fully executed original will be returned to you for your files. Instructions for drawing the loan funds will be returned to you with the executed Loan Contract, as well as the necessary forms. The Loan Contract specifies that draws may be made for costs that have been incurred within the contract period of performance, and which have supporting documentation such as receipts or bills. We are looking forward to working with you over the course of this project. If you have any questions about this Loan Contract, please contact me. Sincerely, Dennis Hewitt DOH Contract Manager 360-236-3017 Dennis.hewitt@doh,wa,gov Enclosures: ATTACHMENT I: SCOPE OF WORK (PROJECT) ATTACHMENT II: ATTORNEY'S CERTIFICATION ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS ATTACHMENT IV: DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ATTACHMENT V: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS ATTACHMENT VI: DWSRF ELIGIBLE PROJECT COSTS ATTACHMENT VII: LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Exhibit A Page 91 of 140 Version History Date Revision(s) Version 05-15-2018 Original - developed via a team of the DWSRF Grant and Loan Unit Supervisor, the DOH Office of Drinking Water Finance Director, the DOH Office of Contracts and Procurement Technical and Policy Advisor, and DOH’s Financial Services Assistant Attorney General. 1 Washington State Department of Health DWSRF Municipal Loan Boilerplate May 2018 Page 92 of 140 DWL26037 City of Pasco Page 1 of 31 DWSRF Loan Contract (Municipal) v1 1. CONTRACT FACE SHEET 2020-3921 Loan Number: DWL26037 Washington State Department of Health (DOH) Drinking Water State Revolving Fund (DWSRF) Municipal 1. Borrower 2. Borrower Doing Business As (optional) City of Pasco P.O. Box 293 Pasco, WA 99031 3. Borrower Type Construction Loan 4. Borrower’s Statutory Authority 5. Borrower Contract Manager Information 6. DOH Contract Manager Maria Laura Serra CIP Manager 509.544.3080 x6412 serram@pasco-wa.gov Dennis Hewitt P.O. Box 47822 Olympia, WA 98504-7822 360-236.3017 dennis.hewitt.wa.gov 7. Project Name West Pasco Water Treatment Plant Improvements 8. Loan 9. Funding Source 10. Start Date 11. End Date Amount: $5,050,000.00 Loan Fee: $50,000.00 Interest Rate:1.75% Federal: State: Other: DOE 10/01/2040 12. Federal Funding Agency Environmental Protection Agency Catalogue of Federal Assistance (CFDA) Number 66.468 13. Borrower Tax ID # 91-1983815 14. SWV # 000716400 15. Borrower UBI # 113-000-052 16. Borrower DUNS # 009974598 17. Contract Purpose DOH and the party identified above as Borrower, hereafter referred to as BORROWER, have entered into this contract to fund the project identified above that furthers the goals and objectives of the DOH DWSRF Program. The project will be done by the BORROWER as described in the scope of work and this contract. The rights and obligations of the parties are governed by this contract and the following documents incorporated by reference: General Terms and Conditions including Declarations; Attachment I: Scope of Work (Project); Attachment II Attorney's Certification; Attachment III: Federal and State Requirements; Attachment IV: Disadvantaged Business Enterprise Requirements; Attachment V: Certification Regarding Debarment, Suspension, and Other Responsibility Matters; Attachment VI: DWSRF Eligible Project Costs; and Attachment VII: Labor Standard Provisions for Subrecipients that are Governmental Entities. By the signature below, the parties acknowledge and accept the terms of this contract. FOR CONTRACTOR FOR DOH SIGNATURE AND DATE SIGNATURE and DATE NAME and TITLE NAME and TITLE APPROVED AS TO FORM ONLY Mark Calkins, AAG Signature on File Page 93 of 140 DWL26037 City of Pasco Page 2 of 31 DWSRF Loan Contract (Municipal) v1 2. TABLE OF CONTENTS 1. CONTRACT FACE SHEET 2. TABLE OF CONTENTS 3. DECLARATIONS 3.1. BORROWER INFORMATION 3.2. PROJECT INFORMATION (PROJECT) 3.3. CONTRACT COMMUNICATION 3.4. LOAN INFORMATION 3.5. FUNDING INFORMATION 3.6. SPECIAL TERMS AND CONDITIONS 4. GENERAL TERMS AND CONDITIONS 4.1. AUTHORITY 4.2. FULL AGREEMENT 4.3. ORDER OF PRECEDENCE 4.4. LOAN AMOUNT 4.5. LOAN FEE 4.6. LOAN TERM 4.7. INTEREST RATE 4.8. LOAN FORGIVENESS 4.9. RELEASE OF LOAN FUNDS AND REQUIRED DOCUMENTATION 4.10. TIME OF PERFORMANCE 4.11. PROJECT COMPLETION AMENDMENT AND THE PROJECT COMPLETION REPORT 4.12. LOAN PAYMENTS 4.13. LOAN DEFAULT 4.14. LOAN SECURITY 4.15. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS AND WAIVERS 4.16. AMERICAN IRON AND STEEL 4.17. ATTORNEY’S FEES 4.18. BONUS AND COMMISSION PAYMENTS NOT ALLOWED 4.19. COMPLIANCE 4.20. DISPUTES 4.21. ELIGIBLE PROJECT COSTS 4.22. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM 4.23. FINANCIAL AUDIT 4.24. GOVERNING LAW AND VENUE 4.25. HISTORICAL AND CULTURAL REQUIREMENTS 4.26. INDEMNIFICATION 4.27. INDUSTRIAL INSURANCE REQUIREMENTS Page 94 of 140 DWL26037 City of Pasco Page 3 of 31 DWSRF Loan Contract (Municipal) v1 4.28. LITIGATION 4.29. NONDISCRIMINATION 4.30. PREVAILING WAGE 4.31. PROCUREMENT 4.32. PROHIBITION STATEMENT 4.33. PROJECT SIGNS 4.34. PUBLICITY 4.35. RATES AND RESERVES 4.36. RECAPTURE 4.37. RECORDKEEPING AND ACCESS TO RECORDS 4.38. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT (SAM) 4.39. SEVERABILITY 4.40. SUBCONTRACTING 4.41. SURVIVAL 4.42. TERMINATION FOR CAUSE 4.43. TERMINATION OR SUSPENSION FOR CONVENIENCE 4.44. TERMINATION PROCEDURES 4.45. WORK HOURS AND SAFETY STANDARDS ATTACHMENT I SCOPE OF WORK (PROJECT) ATTACHMENT II ATTORNEY’S CERTIFICATION ATTACHMENT III FEDERAL AND STATE REQUIREMENTS ATTACHMENT IV DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS ATTACHMENT V CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS ATTACHMENT VI DWSRF ELIGIBLE PROJECT COSTS ATTACHMENT VII LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Page 95 of 140 DWL26037 City of Pasco Page 4 of 31 DWSRF Loan Contract (Municipal) v1 3. DECLARATIONS 3.1. BORROWER INFORMATION Legal Name: City of Pasco Loan Number: DWL26037 Award Year: 2020 State Wide Vendor Number: 000716400 3.2. PROJECT INFORMATION (PROJECT) Project Title: West Pasco Water Treatment Plant Improvements Project Location: Pasco / Franklin County Project State: Washington Project Zip Code: 99031 Project Scope of Work (PROJECT): Attachment I, attached hereto and incorporated by reference. 3.3. CONTRACT COMMUNICATION Communications regarding Contract performance is delegated by each party to its Contract Manager. Either party may change its Contract Manager by express notice to the other party. Either party may identify on an as needed basis an alternate Contract Manager to serve during the stated temporary absence of its primary Contract Manager. Notices between the parties regarding Contract performance must be provided by written communication to the other party’s Contract Manager. Written communication includes email but not voice mail. Notices are presumed received by the other party’s Contract Manager upon evidence of delivery between the hours of 8:00 am to 5:00 pm except for state holidays and weekends. 3.4. LOAN INFORMATION Loan Amount: $5,050,000.00 Loan Fee (Included in loan amount): 1.0% $50,000.00 Principal Loan Forgiveness %: 0% Loan Term: 20 years Interest Rate: 1.75% Payment Month(s): October 1st <Annually> Time of Performance: Notice to Proceed: 48 months from Contract start date (date of last signature) to Project Completion date. 18 months from Contract start date (date of last signature) 3.5. FUNDING INFORMATION Total Funds from BORROWER: To be determined Source(s) of Funds from Borrower, with assigned amounts per source: To be determined Total State Funds: To be determined Total Amount of Federal Award (as applicable): To be determined Total Amount of Loan: $5,050,000.00 Federal Award Date: To be determined Federal Award ID # (FAIN): Amount of Federal Funds Obligated by this Action: To be determined N/A 3.6. SPECIAL TERMS AND CONDITIONS Not applicable Page 96 of 140 DWL26037 City of Pasco Page 5 of 31 DWSRF Loan Contract (Municipal) v1 4. GENERAL TERMS AND CONDITIONS DRINKING WATER STATE REVOLVING FUND (MUNICIPAL) 4.1. AUTHORITY Acting under the authority of Section 1452 of the Safe Drinking Water Act (SDWA) Section 130, RCW 39.34, RCW 43.70.040, and RCW 70.119A.170 the Washington State Department of Health (DOH) has awarded BORROWER a Drinking Water State Revolving Fund Loan (LOAN) for the project identified in the Declarations (PROJECT). Under this CONTRACT, BORROWER is a sub-recipient of funds provided by the United States Environmental Protection Agency (EPA), CFDA Number 66.468, Safe Drinking Water State Revolving Fund. In some CONTRACT attachments, DOH is referred to as “Lender” and BORROWER is referred to as “Contractor .” 4.2. FULL AGREEMENT This CONTRACT contains the full agreement of the parties. No other understandings, oral or otherwise, regarding the subject matter of this CONTRACT exists. 4.3. ORDER OF PRECEDENCE In the event of an inconsistency in this CONTRACT, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: The order of precedence for terms and conditions under categories B and C is subject to the proviso that when a contract term or condition appears in more than one contract document, the more specific contract term or condition shall control if the different contract provisions cannot be harmonized. A. Applicable local, state, and federal statutes and regulations B. Contract amendments C. The Contract (in this order) Declarations and Special Terms and Conditions General Terms and Conditions Attachments I – VII 4.4. LOAN AMOUNT DOH, using funds from the Drinking Water Assistance Account, will loan BORROWER a sum not to exceed the amount shown as LOAN AMOUNT in the Declarations. The LOAN AMOUNT shall not exceed one hundred percent (100%) of the actual eligible PROJECT costs. 4.5. LOAN FEE If DOH assessed a LOAN FEE, it is shown in the Declarations as LOAN FEE and included in the total LOAN AMOUNT. The fee (if applicable) is one percent (1%) of the loan request and will not be reduced, regardless of the final LOAN AMOUNT at PROJECT completion. If the LOAN FEE applies and the total LOAN AMOUNT is increased by amendment, DOH will assess an additional LOAN FEE equal to one percent (1%) of the additional LOAN AMOUNT. LOAN FEES are non-refundable. 4.6. LOAN TERM Unless changed by an amendment, the LOAN TERM will not exceed the period of time shown in the Declarations. The repayment period for DOH subsidized loans is twenty-four (24) years from this CONTRACT’s start date. The repayment period for non-DOH subsidized loans is twenty (20) years from this CONTRACT’s start date. 4.7. INTEREST RATE The interest rate is stated in the Declarations. Interest is per annum on the outstanding principal balance and starts to accrue from the date DOH releases LOAN FUNDS to BORROWER. If BORROWER completes the PROJECT within twenty-four (24) months of the CONTRACT start date, DOH will reduce the LOAN INTEREST to one percent Page 97 of 140 DWL26037 City of Pasco Page 6 of 31 DWSRF Loan Contract (Municipal) v1 (1%) at PROJECT completion. The reduced interest rate will apply to the remaining payments beginning from the date DOH approves the BORROWER’s Project Completion Report. 4.8. LOAN FORGIVENESS If the LOAN qualifies for LOAN Forgiveness, the percent of the LOAN balance that DOH will forgive at PROJECT completion is stated in the Declarations. DOH calculates the amount forgiven when DOH approves the BORROWER’s Project Completion Report. The amount forgiven will be based on either the LOAN AMOUNT or BORROWER’s ELIGIBLE PROJECT COSTS, whichever is less, and accrued interest. 4.9. RELEASE OF LOAN FUNDS AND REQUIRED DOCUMENTATION DOH will release LOAN funds to BORROWER to reimburse BORROWER for eligible PROJECT costs. To request reimbursement, BORROWER must submit a signed and completed invoice using a form provided by DOH. The invoice must reference the PROJECT activity performed, and include supporting documentation such as bills, invoices, receipts, and documentation of compliance with CONTRACT requirements as requested by DOH. The invoice must signed by an official of BORROWER with authority to bind BORROWER. Invoices must also include a report of the progress made since the last invoice, and the PROJECT status to date. DOH will not release funds until the PROJECT status report and documentation are approved by DOH. Approval will not be unreasonably withheld or delayed. After approving the invoice, documentation, and PROJECT status report, DOH will release funds to BORROWER within thirty (30) days, if BORROWER is not in alleged or actual breach of CONTRACT. DOH will withhold ten percent (10%) of LOAN funds until DOH confirms that BORROWER has successfully completed all steps for PROJECT COMPLETION. The 10% holdback will be available to BORROWER as part of the last LOAN disbursement. 4.10. TIME OF PERFORMANCE BORROWER will begin the activities in the PROJECT within thirty (30) calendar days of the CONTRACT start date. BORROWER will issue a ‘Notice to Proceed’, after the formal award of a construction contract, within eighteen (18) months of the CONTRACT start date. BORROWER must reach PROJECT COMPLETION within the TIME OF PERFORMANCE. If there are extenuating circumstances, BORROWER may request, in writing, at least ninety (90) calendar days prior to the PROJECT COMPLETION that DOH extend the deadline for PROJECT COMPLETION. At its discretion, DOH may issue an extension. DOH’s decision is final and not subject to the dispute clause. If BORROWER does not meet the requirements of this section, it is a breach of CONTRACT, and DOH may terminate or suspend this CONTRACT. 4.11. PROJECT COMPLETION AMENDMENT AND THE PROJECT COMPLETION REPORT The PROJECT Completion Amendment determines the final LOAN AMOUNT and LOAN TERM. When activities in the PROJECT are complete, BORROWER will start the process for the PROJECT Completion Amendment by sending DOH the PROJECT Completion Report. In the PROJECT Completion Report., BORROWER will provide the following information to DOH: A. A statement of the actual dollar amount spent, from all fund sources, to complete the PROJECT. B. A statement that all ELIGIBLE PROJECT COSTS have been incurred. Costs are incurred when goods and services are received and/or contracted work is performed. C. Evidence showing BORROWER’S compliance with financial the audit requirements of this CONTRACT. D. An invoice for the remaining ELIGIBLE PROJECT COSTS. E. Documentation of BORROWER’s compliance with National Historic Preservation Act, 54 USC Subtitle III. Page 98 of 140 DWL26037 City of Pasco Page 7 of 31 DWSRF Loan Contract (Municipal) v1 4.12. LOAN PAYMENTS BORROWER must begin repaying the LOAN no later than one (1) year after the CONTRACT start date. Payments are due on the first day of the month(s) shown as the PAYMENT MONTH(S) in the Declarations. The first payment is only the interest accrued at that time. All other payments are principal and interest accrued up to the PAYMENT MONTH(S). BORROWER can repay in full the LOAN balance, including fees and repayment of LOAN FUNDS for ineligible project costs (if any), at any time or make accelerated payments without penalty. The final payment must be on or before the end of the LOAN TERM. 4.13. LOAN DEFAULT DOH must receive BORROWER’S payment within thirty (30) calendar days of the due date. Late payments are delinquent and assessed a monthly penalty on the first (1st) day past the due date. The penalty is one percent (1%) of the late payment amount per month. Penalty and fees accrue interest at the rate stated as LOAN INTEREST in the Declarations. DOH may notify any other entity, creditors, or potential creditors of BORROWER’s delinquency. BORROWER is responsible for all attorney fees and costs incurred by DOH in any action taken to enforce its rights under this section, including in any alternative dispute resolution proceeding. 4.14. LOAN SECURITY LOAN Security is only required if identified in the Declarations. In its sole discretion and if allowed under the EPA regulations relevant to this Contract, DOH may subordinate its LOAN security to Borrower’s obligations under existing or future bonds and notes. Nothing in this section releases BORROWER from the obligation to make LOAN PAYMENTS when due, and to adjust rates, fees, or surcharges as necessary to meet its obligations under this CONTRACT. 4.15. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS, AND WAIVERS Amendments, modifications, assignments, and waivers to any of the terms of this CONTRACT supersede, if applicable, those terms as found in the original CONTRACT, and are not binding unless they are in writing and signed by representatives authorized to bind each of the parties. Only the authorized representative or their designee has the express, implied, or apparent authority to alter, amend, assign, modify, or waive any terms of this CONTRACT. Neither this CONTRACT nor any claim arising under it may be transferred or assigned by BORROWER without DOH’s prior written consent. During the LOAN TERM, DOH must approve in advance, any change in ownership of the water system(s) improved with LOAN FUNDS. DOH may require the LOAN, including fees and ineligible project costs (if any), be paid in full as a condition of approval. Nothing in this CONTRACT may be waived unless approved by DOH in writing. No waiver of any default or breach is implied from any failure to take action upon such default or breach if the default of breach persists or repeats. Waiver of any default or breach is not a waiver of any subsequent default or breach. 4.16. AMERICAN IRON AND STEEL None of the LOAN funds can be used for the construction, alteration, maintenance, or repair of a public water system or treatment works unless all of the iron and steel products used are produced in the United States. “Iron and steel products” means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. DOH may waive this requirement if: A. Compliance would be inconsistent with the public interest; or B. The particular iron and steel products are not produced in the United States in sufficient and reas onably available quantities and are not of a satisfactory quality; or Page 99 of 140 DWL26037 City of Pasco Page 8 of 31 DWSRF Loan Contract (Municipal) v1 C. Inclusion of iron and steel products produced in the United States w ill increase the cost of the overall project by more than twenty-five (25) percent; and D. The waiver is approved by the Environmental Protection Agency (EPA). BORROWER must submit the waiver request to DOH, which will submit it to EPA. The full text of the American Iron and Steel requirements can be found in H.R. 3547, Consolidated Appropriations Act, 2014, P.L. 113-76, SEC. 436. 4.17. ATTORNEYS’ FEES Unless expressly stated under another section of the CONTRACT, each party agrees to bear its own attorneys’ fees and costs for litigation or other action brought to enforce the contract terms. 4.18. BONUS AND COMMISSION PAYMENTS NOT ALLOWED Funds provided under this CONTRACT cannot be used to pay any bonus or commission to gain approval of the loan application or any other approval under this CONTRACT. This section does not prohibit paying for bona fide technical consultants, managerial, or other such services, if payment is for ELIGIBLE PROJECT COSTS. 4.19. COMPLIANCE BORROWER will comply with all applicable federal, state and local laws, requirements, and ordinances for the design, implementation, and administration of the PROJECT and this CONTRACT, including but not limited to those stated in the CONTRACT attachments. BORROWER will provide DOH with documentation of compliance, if requested. In the event of BORROWER’s alleged or actual noncompliance with any part of this CONTRACT, DOH may suspend all or part of the CONTRACT, withhold payments, or prohibit BORROWER from incurring additional obligations of LOAN FUNDS during the investigation and pending corrective action by BORROWER, or a decision by DOH to terminate the CONTRACT. 4.20. DISPUTES Except as otherwise provided in this CONTRACT, when a dispute arises between the parties that cannot be solved by direct negotiation, either party may request a dispute hearing with the Director of the Office of Drinking Water (the Director), who may designate a neutral person to decide the dispute. The parties will be equally responsible for any reasonable costs and fees incurred by the neutral. The party requesting a dispute hearing must: A. Be in writing; B. State the disputed issues; C. State the relative positions of the parties; D. State BORROWER's name, address, and the CONTRACT number; E. Provide contact information for the requester’s representative , and, F. Be mailed to the other party’s (respondent’s) Contract Manager within three (3) working days after the parties agree that they cannot resolve the dispute. The respondent must send a written answer within five (5) working days. In the alternative, the parties can agree to submit a mutual request to the Director, which should include each party’s response to the other party’s characterization of the dispute. The Director or designee will review the written statements and reply in writing to both parties within ten (10) working days. The Director or designee may extend this period if necessary by notifying the parties. The decision on the dispute is non-binding and is not admissible in any succeeding judicial or quasi-judicial proceeding. This non-binding dispute process must precede any action in a judicial or quasi-judicial tribunal. Nothing in this CONTRACT limits the parties from using any mutually acceptable alternate dispute resolution (ADR) method in addition to or instead of the dispute hearing procedure outlined above. Page 100 of 140 DWL26037 City of Pasco Page 9 of 31 DWSRF Loan Contract (Municipal) v1 4.21. ELIGIBLE PROJECT COSTS BORROWER will comply with Attachment VI: DWSRF Eligible Project Costs and is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors. The purchase of any land necessary for the PROJECT must be included in the PROJECT and be documented with an appraisal or equivalent market evaluation, if approved by DOH, and a valid purchase and sale agreement. Construction expenses incurred after the date shown as earliest date for construction reimbursement in the Declarations are eligible for reimbursement. Requests for reimbursements for costs related to construction activities will not be accepted until BORROWER has met the following conditions: A. Completed the State Environmental Review Process (SEPA Review under RCW 43.21C); B. Complied with all provisions of the National Historic Preservation Act, 54 USC Subtitle III; C. Complied with Prevailing Wage requirements; D. Received approval from DOH of the project report and related construction documents for all applicable activities described in the PROJECT; and E. Complied with any other LOAN conditions required by DOH. BORROWER cannot use LOAN FUNDS for any expenses charged by BORROWER against any other contract, subcontract, or source of funds. If DOH reimburses BORROWER for costs that are later determined by DOH to be ineligible, BORROWER must repay these funds to DOH no later than when the BORROWER returns the PROJECT Completion Amendment to DOH. Prior to final completion, DOH may withhold payment for such costs as allowed under Section 4.36 RECAPTURE. Repayment is subject to interest retroactive to the date of the applicable disbursement by DOH. 4.22. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM BORROWER warrants that they have not and will not submit to DOH any information that is materially false, incorrect, or incomplete. Providing false, fictitious, or misleading information with respect to the receipt and disbursements of LOAN funds is a basis for criminal, civil, or administrative fines and/or penalties. DOH may also pursue applicable remedies for violations by BORROWER of this section. 4.23. FINANCIAL AUDIT DOH may require BORROWER to obtain an audit of this PROJECT conforming to Generally Accepted Accounting Principles (GAAP). BORROWER will maintain its records and accounts to facilitate the audit. BORROWER is responsible for correcting any audit findings. BORROWER is responsible for any audit findings incurred by its own organization and/or its subcontractors. DOH reserves the right to recover from BORROWER all disallowed costs and INELEGIBLE PROJECT COSTS resulting from the audit. The audit must include a report on compliance, including an opinion (or disclaimer of opinion) about whether the BORROWER is in compliance with laws, regulations and requirements of this CONTRACT that could have a direct and material effect on DOH. BORROWER must send a copy of any required audit per 2 CFR §200.512 to the DOH Contract Manager, no later than nine (9) months after the end of BORROWER’s fiscal year(s). BORROWER must send any audit corrective action plan for audit findings and a copy of the management letter, within three (3) months of the audit report. 4.24. GOVERNING LAW AND VENUE This CONTRACT shall be construed and interpreted according to the laws of the state of Washington, and the venue of any action brought under the CONTRACT will be in the Superior Court for Thurston County. 4.25. HISTORICAL AND CULTURAL REQUIREMENTS BORROWER will not conduct or authorize destructive PROJECT planning activities before completing the requirements of the National Historic Preservation Act, 54 USC Subtitle III. BORROWER will not begin construction Page 101 of 140 DWL26037 City of Pasco Page 10 of 31 DWSRF Loan Contract (Municipal) v1 activities, ground disturbance, or excavation of any sort, until BORROWER has complied with all requirements of the National Historic Preservation Act of 1966, as amended. If historical or cultural artifacts are discovered during the PROJECT, BORROWER will immediately stop construction and implement reasonable measures to protect the discovery site from further disturbance, take reasonable steps to ensure confidentiality of the discovery site, restrict access to the s ite, and notify the concerned tribe’s cultural staff or committee, Tribal Historical Preservation Officer (THPO), DOH Contract Manager, and the State's Historical Preservation Officer (SHPO) at the Washington State Department of Archaeology and Historic Preservation (DAHP). If human remains are uncovered, BORROWER will report the presence and location of the remains to the local coroner and law enforcement immediately, then contact the concerned tribe’s cultural staff or committee, DOH Contract Manager, and DAHP. BORROWER is legally and financially responsible for compliance with all laws, regulations, and agreements related to the preservation of historical or cultural sites and artifacts and will hold harmless the state of Washington and DOH in relation to any claim related to historical or cultural sites discovered, disturbed, or damaged as a result of BORROWER’S and BORROWER’s subcontractors activities. BORROWER will include the requirements of this section in all contracts for work or services related to the PROJECT. BORROWER will require that bid documents include an inadvertent discovery plan that meets the requirements of this section. 4.26. INDEMNIFICATION BORROWER agrees to defend, indemnify, and hold harmless DOH and the state of Washington for claims arising out of or incident to BORROWER’S or any BORROWER’S subcontractor’s performance or failure to perform the CONTRACT. BORROWER’S obligation to indemnify, defend, and hold harmless DOH and the state of Washington shall not be eliminated or reduced by any actual or alleged concurrent negligence of DOH or its agents, agencies, employees and officials. BORROWER’S obligation to indemnify, defend and hold harmless DOH and the state of Washington includes any claim by BORROWER’S agents, employees, officers, subcontractors or subcontractor employees. BORROWER waives immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold harmless the state and its agencies, officers, agents or employees. 4.27. INDUSTRIAL INSURANCE COVERAGE BORROWER will comply with the applicable parts of Title 51 RCW, Industrial Insurance. If BORROWER fails to provide industrial insurance coverage or fails to pay premiums or penalties on behalf of its employees as required by law, DOH may collect from BORROWER the full amount payable to the Industrial Insurance Accident Fund. DOH may deduct the amount owed by BORROWER to the accident fund from the amount payable to BORROWER by DOH under this CONTRACT, and transmit the deducted amount to the Washington State Department of Labor and Industries (L&I). 4.28. LITIGATION BORROWER warrants that there is no threatened or pending litigation, investigation, or legal action before any court, arbitrator, or administrative agency that, if adversely determined against BORROWER, would have a materially adverse effect on BORROWER’s ability to repay the LOAN. BORROWER agrees to promptly notify DOH if any above-referenced actions become known to BORROWER during the pendency of the Contract. 4.29. NONDISCRIMINATION BORROWER will not discriminate on the basis of race, creed, color, national origin, families with children, sex, marital status, sexual orientation, age, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability in the performance of this CONTRACT. BORROWER will comply with all federal and state nondiscrimination laws, including, but not limited to Chapter 49.60 RCW, Washington’s Law Against Discrimination and 42 USC 12101 et seq., the Americans with Disabilities Act (ADA), and 40 CFR Part 33 Participation by Disadvantaged Business Enterprises in US EPA Programs . Failure by BORROWER to carry out these requirements is a material breach of this CONTRACT. BORROWER is required to include these non-discriminatory provisions in any contract with a subcontractor. Page 102 of 140 DWL26037 City of Pasco Page 11 of 31 DWSRF Loan Contract (Municipal) v1 4.30. PREVAILING WAGE BORROWER will assure that all contractors and subcontractors performing work funded through this CONTRACT comply with prevailing wage laws by paying the higher of state or federal prevailing wages . BORROWER is legally and financially responsible for compliance with the prevailing wage requirements. BORROWER should consult the United States Department of Labor and Washington State Department of Labor and Industries websites to determine the federal and State prevailing wages that must be paid. 4.31. PROCUREMENT BORROWER will comply with all procurement requirements for subcontracting for the PROJECT and for obtaining PROJECT-related goods and services. BORROWER must maintain records to verify compliance with procurement requirements. BORROWER must ensure that all contractors, subcontractors, engineers, vendors, and any other entity for work or services listed in the PROJECT will insert in full, in any contract, the labor standards provisions in Attachment VIII: Labor Standard Provisions for Subrecipients That Are Governmental Entities. 4.32. PROHIBITION STATEMENT Per Section 106 of the federal Trafficking Victims Protection Act, BORROWER `s contractors, subcontractors, engineers, vendors, and any other entity performing work funded by this CONTRACT must comply with and include the following terms and conditions in all contracts for work or services for the PROJECT. “All forms of trafficking in persons, illegal sex trade, or forced labor practices are prohibited in t he performance of this award or subawards under the award, or in any manner during the period of time that the award is in effect. This prohibition applies to you as the recipient, your employees, subrecipients under this award, and subrecipients’ employees.” 4.33. PROJECT SIGNS If BORROWER displays, during the TIME OF PERFORMANCE, any signs or markers identifying parties that are providing funds for the PROJECT, BORROWER must include the Washington State Department of Health Drinking Water State Revolving Fund and the Washington State Department of Health as participants in the PROJECT. 4.34. PUBLICITY BORROWER agrees to get prior written consent from DOH’s Contract Manager before publishing or using any advertising or publicity materials that include Washington State or DOH’s name, or includes language that may reasonably infer or imply a connection with either one. 4.35. RATES AND RESERVES BORROWER will maintain reserves at a minimum as required by the Water System Plan or Small Water System Management Plan. BORROWER will timely adopt rate increases and/or capital assessments for the system’s services to provide sufficient funds, along with other revenues of the system, to pay all operating expenses and debt repayments during the LOAN TERM. 4.36. RECAPTURE DOH reserves the right to recapture from BORROWER sufficient funds to compensate DOH for BORROWER’s noncompliance with any part of this CONTRACT, in addition to any other remedies available under the CONTRACT, at law, or in equity. DOH may withhold LOAN FUNDS from BORROWER to recapture such funds. 4.37. RECORDKEEPING AND ACCESS TO RECORDS DOH, its agents, and authorized officials of the state and federal governments will have full access and the right to examine, copy, excerpt, or transcribe, at no additional cost and at all reasonable times, any pertinent documents, papers, records, and books of BORROWER and of persons, firms, or organizations with which BORROWER may contract, involving transactions related to this CONTRACT. BORROWER agrees to keep complete records of its compliance with this CONTRACT for a period of six (6) years from the date that the debt to DOH is paid in full. This includes but is not limited to financial reports. If any litigation, claim or audit is started before the expiration of the six (6) year period, BORROWER must keep the records until all litigation, claims or audit findings involving the records have been resolved. These records retention requirements are in addition to the local government records Page 103 of 140 DWL26037 City of Pasco Page 12 of 31 DWSRF Loan Contract (Municipal) v1 retention schedules applicable to the BORROWER. 4.38. REGISTRATION WITH THE SYSTEM FOR AWARD MANAGEMENT (SAM) BORROWER must comply with 48 CFR 52.204-7 to register with the System for Awards Management (SAM.gov). BORROWER is responsible for the accuracy and completeness of its data in the SAM database and any liability resulting from the Government or DOH reliance on inaccurate or incomplete data in it. BORROWER must remain registered in the SAM database. BORROWER should annually review its information in SAM to ensure it is accurate and complete. 4.39. SEVERABILITY If any part of this CONTRACT or part of any document incorporated by reference is found to be invalid, it will not affect the other parts of this CONTRACT that can be given effect without the invalid part. 4.40. SUBCONTRACTING Prior to awarding contracts and/or subcontracts, BORROWER must verify that the complete names of both the selected contractor and the owner or president are not in the Federal Excluded Parties List System for Ineligible Professionals and Debarred Contractors (www.SAM.gov). BORROWER must provide the DOH Contract Manager with a screen printout documenting that neither the firm, the owner or the president are excluded. BORROWER will ensure that every contract and subcontract awarded for the PROJECT after the CONTRACT start date will bind the parties to follow all applicable terms of this CONTRACT. BORROWER is responsible to DOH for noncompliance by its contractors and/or subcontractors. BORROWER’s contracts or subcontracts do not release or reduce the BORROWER’s liability to DOH for any breach in the performance of BORROWER’s duties. BORROWER’s contracts and subcontracts must include a term that the state of Washington and DOH are not liable for claims or damages arising from a contractor and/or subcontractor’s performance or lack thereof. 4.41. SURVIVAL The CONTRACT’s terms, conditions, and warranties that by its sense and context are intended to survive the completion of the performance, cancellation or termination of this CONTRACT, shall so survive. 4.42. TERMINATION FOR CAUSE If DOH concludes that BORROWER has failed to comply with the CONTRACT requirements or has otherwise breached one or more parts of the CONTRACT, DOH may, at its discretion, upon notice to BORROWER, terminate or suspend the CONTRACT and/or its attached agreements in whole or in part. The notice will be in writing and state the reason(s) for termination or suspension, and the effective date. The effective date will be determined by DOH. The notice will allow BORROWER at least thirty (30) business days to cure the breach, if curable. If the breach is not cured or cannot be cured within thirty (30) business days, the outstanding balance of the LOAN, with any interest accrued and other costs as authorized by the CONTRACT shall be due and payable to DOH. If DOH terminates this CONTRACT under this section, DOH is liable only for payment required under the terms of this CONTRACT for ELIGIBLE PROJECT COSTS incurred prior to the effective date of termination. At DOH’s discretion, the termination for cause may be deemed a termination for convenience if DOH determines that the default or failure to perform was outside BORROWER’s control, fault or negligence. The rights and remedies of DOH provided in this CONTRACT are not exclusive and are in addition to any other rights and remedies provided by law. Nothing in this section affects BORROWER’s obligations to immediately repay the unpaid balance of the LOAN as prescribed in the Washington Administrative Code (WAC) 246-296-150. 4.43. TERMINATION OR SUSPENSION FOR CONVENIENCE If funding or appropriation from state, federal, or other sources is withdrawn, reduced, or limited in any way during the TIME OF PERFORMANCE, DOH may: Page 104 of 140 DWL26037 City of Pasco Page 13 of 31 DWSRF Loan Contract (Municipal) v1 A. Delay or suspend releasing LOAN FUNDS until funding or appropriation are available to DOH; or B. Amend the CONTRACT to reflect the new funding limitations and conditions; or C. Terminate the CONTRACT and/or its attached agreements, in whole or in part; or D. Suspend the CONTRACT and/or its attached agreements, in whole or in part. If DOH terminates the CONTRACT and/or its attached agreements in whole or in part, under this section, DOH will notify BORROWER’s representative in writing of the reason(s) for termination, and the effective date. The effective date will be determined by DOH. DOH may choose to suspend this CONTRACT and/or its attached agreements in whole or in part, if DOH determines that the funding insufficiency will likely be resolved in time for BORROWER to resume activities prior to the end of the TIME OF PERFORMANCE. DOH will notify BORROWER’s representative by facsimile or email of the reason(s) for suspension, and the effective date. DOH will determine the effective date. BORROWER must suspend performance on the effective date of the suspension. During the period of suspension each party must notify the other party’s representative of any conditions that may reasonably affect its ability to resume performance. During the suspension, when DOH determines that the funding insufficiency is resolved, DOH may no tify BORROWER’s representative of the proposed date to resume performance. BORROWER must respond to DOH’s representative in writing, within five (5) business days of DOH sending notice, as to whether it can resume performance on that date or offer an alternative date to resume performance. If BORROWER cannot resume performance or the alternative date is not acceptable to DOH, the parties agree the CONTRACT will be deemed terminated for convenience, retroactive to the original date of suspension. If DOH terminates or suspends this CONTRACT, DOH is liable only for payment required under the terms of this CONTRACT for eligible project costs incurred prior to the effective date of suspension or termination. Nothing in this section shall affect Contractor’s obligations to repay the unpaid balance of the LOAN. Nothing in this section affects BORROWER’s obligation to repay the LOAN, including fees and other expenses as allowed by the CONTRACT. 4.44. TERMINATION PROCEDURES When BORROWER receives Notice of Termination or on the date a suspension is converted to a termination, except as otherwise directed by DOH, BORROWER will: A. Stop work under the CONTRACT on the date, and to the extent specified, in the notice; B. Place no further orders or subcontracts for materials, services, or facilities related to the CONTRACT; C. If expressly requested by DOH, assign to DOH any or all of the rights, title, and interest of BORROWER under the orders and subcontracts so terminated, in which case DOH has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts. Any attempt by BORROWER to settle such claims must have the prior written approval of DOH; and D. Preserve and transfer any materials, CONTRACT deliverables and/or DOH property in BORROWER’s possession as directed by DOH. Upon termination of this CONTRACT, DOH will pay BORROWER for amounts due under the CONTRACT prior to the date of termination unless such payment is precluded under any other provision of this CONTRACT. DOH may withhold any amount due as DOH reasonably determines is necessary to protect DOH against potential loss or liability resulting from the termination. DOH will pay any withheld amount to BORROWER if DOH later determines that loss or liability will not occur. 4.45. WORK HOURS AND SAFETY STANDARDS If this CONTRACT exceeds $100,000, BORROWER must comply with the applicable Contract Work Hours and Safety Standards Act (40 USC Chapter 37). These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. Page 105 of 140 DWL26037 City of Pasco Page 14 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) ATTACHMENT I: SCOPE OF WORK (PROJECT) DWSRF PROGRAM LOAN CONTRACT INFORMATION 2020-3921 WEST PASCO WATER TREATMENT PLANT IMPROVEMENTS DWSRF Scope of Work Form: Scope of Work: Project to include: 1. Installation of membrane treatment units in existing treatment plant to treat approximately 8,333 gpm. Costs to include: pre-filter strainers, membrane treatment units, piping, controls, valves, telemetry, electrical, backwash system, waste handling system, and other appurtenances. 2. Installation of filter-to-waste piping. Costs to include: piping, valves, controls, telemetry, modifications to existing piping, modifications to existing residual handling basin, and other appurtenances. 3. Installation of treatment clarifier and equipment for residuals handling and recycle capabilities of residuals. Costs to include: piping, valves, controls, telemetry, modifications to existing piping, pumps, equalization basin, flocculation chamber, ancillary hydraulic structures, modifications to existing residual handling basin, and other appurtenances. 4. Upgrade to existing telemetry and controls. Costs to include: installation of new controls, control panels, equipment, electrical, and programming. 5. Submit project reports and construction documents for review and approval by Eastern Regional Office of Drinking Water regional engineer prior to start of construction. In addition to costs of construction, costs may include (but are not limited to): engineering, design, construction inspection, hydrogeologic assessment, cultural and environmental review, permits, public involvement, preparation of bid documents, fees, taxes, legal, administrative, and audit. Page 106 of 140 DWL26037 City of Pasco Page 15 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) 2020-3921 WEST PASCO WATER TREATMENT PLANT IMPROVEMENTS Project Costs by Cost Category: COST CATEGORY CURRENT ESTIMATES Engineering Report (Preliminary Engineering) $208,515.00 Environmental Review $4,000.00 Historical Review/Cultural Review $6,000.00 Land/ROW Acquisition $0.00 Permits $15,577.00 Public Involvement/Information $0.00 Bid Documents (Design Engineering) $548,908.00 Construction: Estimated Cost. Provide details on following pages. $2,733,027.44 DOH Review/Approval Fees: $5,844.00 Contingency: (10% min, 20% max) $683,256.86 Sales or Use Taxes $321,444.70 Construction Engineering/Inspection $467,427.00 Insurance: $0.00 Audit: $6,000.00 Legal: $0.00 Service Meters (Purchase and Installation) $0.00 Other: TOTAL ESTIMATED PROJECT COSTS (before Loan Fee) $5,000,000.00 DWSRF Loan Origination Fee (1%) $50,000.00 DWSRF Loan Award $5,050,000.00 Page 107 of 140 DWL26037 City of Pasco Page 16 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) 2020-3921 WEST PASCO WATER TREATMENT PLANT IMPROVEMENTS Project Funding: TYPE OF FUNDING SOURCE CURRENT STATUS Grants and Other Non-Matching Funds Grant #1 Grant #2 Other Grants $ New Grants $ Total Grants and Other Non-Matching Funds a) $ Loans This Loan Request DWSRF loan $5,050,000 Other Loan #1 $ Other Loan #2 $ Other Loans $ New Loans $ Total Loans b) $ Local Revenue Source #1 Reserves $2,615,400 Source #2 $ Other Local Revenue $ New Local Revenue $ Total Local Revenue c) $ Other Funds Other Funds $ Other Funds $ Total Other Funds d) $ TOTAL PROJECT LOAN e) $5,050,000 Page 108 of 140 DWL26037 City of Pasco Page 17 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) 2020-3921 WEST PASCO WATER TREATMENT PLANT IMPROVEMENTS Engineer’s Certification: The term of this loan will be based on an engineer’s certification of the expected useful life of the improvements, as stated below, or 20 years, whichever is less. If the jurisdiction prefers the term of its loan to be less than either 20 years or t he useful life of the improvements, the preferred loan term should be indicated here: __ years. I, _______________________, licensed engineer, certify that the average expected useful life for the improvements described above is __ years. Signed: ____________________________ Name: ____________________________ Date: ____________________________ Telephone: ____________________________ Professional Engineer License Number: _____________ Page 109 of 140 DWL26037 City of Pasco Page 18 of 31 Attachment I: Scope of Work DWSRF Loan Contract (Municipal) ATTACHMENT II: ATTORNEY’S CERTIFICATION DRINKING WATER STATE REVOLVING FUND (MUNICIPAL) I, ________________________________________________, hereby certify: I am an attorney at law admitted to practice in the state of Washington and the duly appointed attorney of BORROWER identified in the Declarations of the Contract identified above; and I have also examined any and all documents and records, which are pertinent to the Contract, including the application requesting this financial assistance. Based on the foregoing, it is my opinion that: 1. BORROWER is a public body, properly constituted and operating under the laws of the State of Washington, empowered to receive and expend federal, state and local funds, to contract with the state of Washington, and to receive and expend the funds involved to accomplish the objectives set forth in its application. 2. BORROWER is empowered to accept the Drinking Water State Revolving Fund financial assistance and to provide for repayment of the loan as set forth in the loan agreement. 3. There is currently no litigation in existence seeking to enjoin the commencement or completion of the above - described public facilities project or to enjoin BORROWER from repaying the Drinking Water State Revolving Fund loan extended by DOH with respect to such project. BORROWER is not a party to litigation, which will materially affect its ability to repay such loan on the terms contained in the loan agreement. 4. Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable to BORROWER. __________________________________ _____________________________ Signature of Attorney Date __________________________________ Name and BAR Number (WSBA No.) _______________________________________________________________________ Address Page 110 of 140 DWL26037 City of Pasco Page 19 of 31 Attachment III: Federal and State Requirements DWSRF Loan Contract (Municipal) v1 ATTACHMENT III: FEDERAL AND STATE REQUIREMENTS (NOT ALL INCLUSIVE) 1) Environmental and Cultural Authorities a) Archeological and Historic Preservation Act of 1974, Public Law 86-523 as amended b) Clean Air Act, Public Law 84-159 as amended c) Coastal Zone Management Act, Public Law 92-583 as amended d) Endangered Species Act, Public Law 93-205 as amended e) Environmental Justice, Executive Order 12898 f) Floodplain Management, Executive Order 11988 as amended by Executive Order 12148 g) Protection of Wetlands, Executive Order 11990 h) Farmland Protection Policy Act, Public Law 97-98 i) Fish and Wildlife Coordination Act, Public Law 85-624 as amended j) National Historic Preservation Act, 54 USC Subtitle III k) Safe Drinking Water Act, Public Law 93-523 as amended l) Wild and Scenic Rivers Act, Public Law 90-542 as amended m) Washington State Environmental Policy Act, Chapter 43.21C RCW n) Native American Graves Protection and Repatriation Act, Archaeological Resources Protection Act, Revised Code of Washington (RCW) 27.44 regarding Indian Graves and Records; RCW 27.53 regarding Archaeological Sites and Resources; RCW 68.60 regarding Abandoned and Historic Cemeteries and Historic Graves; and Washington Administrative Code (WAC) 25-48 regarding Archaeological Excavation and Removal Permits. 2) Economic and Miscellaneous Authorities a) Demonstration Cities and Metropolitan Development Act of 1996, Public Law 89-754 as amended, Executive Order 12372 b) Procurement Prohibitions under Section 306 of the Clean air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Ac with Respect to Federal Contracts, Grants, or Loans c) Uniform Relocation and Real Property Policies Act, Public Law 91-646 as amended d) Debarment and Suspension, Executive Order 12549 e) H.R. 3547, Consolidated Appropriations Act, 2014. 3) Social Policy Authorities a) Age Discrimination Act of 1975, Public Law 94-135 b) Title VI of the Civil Rights Act of 1964, Public Law 88-352 c) Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500 (the Clean Water Act) d) Section 504 of the Rehabilitation Act of 1973, Public Law 93-112 (including Executive Orders 11914 and 11250) e) Equal Employment Opportunity, Executive Order 11246 f) Disadvantaged Business Enterprise, Public Law 101-549 (the Clean Air Act), and Public Law 102-389 (the Clean Water Act) g) Section 129 of the Small Business Administration Reauthorization and Amendment Act of 1988, Public Law 100 - 590 h) Chapter 49.60 RCW, Washington’s Law against Discrimination, and 42 U SC 12101 et seq. the Americans with Disabilities Act (ADA). i) The Contract Work Hours and Safety Standards Act (40 USC 327-333)-Where applicable. j) The Genetic Information Nondiscrimination Act of 2008 (GINA), 42 USC s. 2000ff et seq. 4) State Laws a) Chapter 36.70A RCW, Growth Management Act b) Chapter 39.80 RCW, Contracts for Architectural and Engineering Services c) Chapter 39.12 RCW, Washington State Public Works Act d) Chapter 43.20 RCW, State Department of Health of Health e) Chapter 43.70 RCW, Department of Health f) Chapter 43.155 RCW, Public Works Project g) Chapter 70.116 RCW, Public Water Systems Coordination Act of 1977 h) Chapter 70.119 RCW, Public Water Supply Systems Certification and Regulation of Operations i) Chapter 70.119A RCW, Public Water Systems, Penalties & Compliances j) Chapter 246-290 WAC, Group A Public Water Systems Page 111 of 140 DWL26037 City of Pasco Page 20 of 31 Attachment III: Federal and State Requirements DWSRF Loan Contract (Municipal) v1 k) Chapter 246-291 WAC, Group B Public Water Systems l) Chapter 246-292 WAC, Waterworks Operator Certification Regulations m) Chapter 246-293 WAC, Water Systems Coordination Act n) Chapter 246-294 WAC, Drinking Water Operating Permits o) Chapter 246-295 WAC, Satellite System Management Agencies p) Chapter 246-296 WAC Drinking Water State Revolving Fund Loan Program q) Chapter 173-160 WAC, Minimum Standards for Construction & Maintenance of Wells r) Title 173 WAC, Department of Ecology Rules s) Title 40 Part 141 Code of Federal Regulations, Federal National Primary Drinking Water Regulations (Section Adopted by Reference) Page 112 of 140 DWL26037 City of Pasco Page 21 of 31 Attachment IV: DBE Requirements DWSRF Loan Contract (Municipal) v1 ATTACHMENT IV: DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS GENERAL COMPLIANCE, 40 CFR, Part 33 BORROWER must comply with the requirements of Environmental Protection Agency's Program for Utilization of Small, Minority and Women's Business Enterprises (MBE/WBE) in procurement under this Contract, contained in 40 CFR, Part 33. BORROWER will use the directory of certified firms available through the Washington State Office of Minority and Women’s Business Enterprises to meet the requirements. FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D The following are exemptions from the fair share objective Requirements: • Grant and loan recipients receiving a total of $250K or less in EPA financial assistance in a given fiscal year. • Tribal recipients of Performance Partnership Eligible grants under 40 CFR Part 35, Subpart B. o There is a 3-year phase in period for the requirement to negotiate fair share goals for Tribal and Insular Area recipients. • Recipients of Technical Assistance Grants. The Fair Share Objectives or goals for the utilization of disadvantaged businesses negotiated with EPA by the WA Office of Minority Women Business are stated below. Construction 10% MBE 6% WBE Supplies 8% MBE 4% WBE Equipment 8% MBE 4% WBE Purchased Services 10% MBE 4% WBE BORROWER must accept the fair share objectives/goals stated above and purchase the same or similar construction, supplies, services and equipment, in the same or similar relevant geographic buying market as WA Office of Minority Women Business goals. SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C Pursuant to 40 CFR, Section 33.301, BORROWER will make the following good faith efforts whenever procuring construction, equipment, services and supplies under an EPA financial assistance agreement, and to ensure that su b- recipients, loan recipients, and prime contractors also comply. Records documenting compliance with the six good faith efforts shall be retained. The six good faith efforts shall include: A. Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local Government recipients, this will include placing the Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. B. Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date. C. Consider in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, State and Local Government recipients, this will include dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process. D. Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract i s too large for one of these firms to handle individually. E. Use the services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Health. F. If the prime contractor awards subcontracts, also require the prime contractor to take the five good faith efforts in paragraphs A through E above. Page 113 of 140 DWL26037 City of Pasco Page 22 of 31 Attachment IV: DBE Requirements DWSRF Loan Contract (Municipal) v1 MBE/WBE REPORTING, 40 CFR, Part 33, Sections 33.502 and 33.503 BORROWER is required to submit MBE/WBE participation reports to DOH, on a quarterly basis, beginning with the Federal fiscal year reporting period BORROWER receives the award and continuing until the project is completed. CONTRACT ADMINISTRATION PROVISIONS, 40 CFR, Section 33.302 BORROWER agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. BORROWER agrees to require all general contractors to provide forms: EPA Form 6100-2 DBE Subcontractor Participation Form and EPA Form 6100-3 DBE Subcontractor Performance Form to all its Disadvantaged Business Enterprise subcontractors, engineers, vendors, and any other entity for work or services listed in the PROJECT. These two (2) forms may be obtained from the EPA Office of Small Business Program’s website on the internet at http://www.epa.gov/osbp/grants.htm. BORROWER agrees to require all general contractors to complete and submit to BORROWER and Environmental Protection Agency EPA Form 6100-4 DBE Subcontractor Utilization Form beginning with the Federal fiscal year reporting period BORROWER receives the award and continuing until the project is completed. Only procurements with certified MBE/WBEs are counted toward a Contractor’s MBE/WBE accomplishments. BIDDERS LIST, 40 CFR, Section 33.501(b) and (c) BORROWER is also required to create and maintain a bidders list if BORROWER of the loan is subject to, or chooses to follow, competitive bidding requirements. Please see 40 CFR, Section 33.501 (b) and (c) for specific requirements and exemptions. Section 33.501(b) of the rule is as follows: A recipient of a Continuing Environmental Program Grant or other annual grant must create and maintain a bidders list. In addition, a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund als o must require entities receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to fo llow, competitive bidding requirements. The purpose of a bidders list is to provide the recipient and entit ies receiving identified loans who conduct competitive bidding with as accurate a database as possible about the universe of MBE/WBE and non - MBE/WBE prime and subcontractors. The list must include all firms that bid or quote on prime contracts or bid or qu ote on subcontracts under EPA assisted projects, including both MBE/WBEs. The bidders list must be kept until the grant project period has expired and the recipient is no longer receiving EPA funding under the grant. For entities receiving identified loans, the bidders list must be kept until the project period for the identified loan has ended. The following information must be obtained from all prime and subcontractors: (1) Entity’s name with point of contact; (2) Entity’s mailing address, telephone number, and e-mail address; (3) The procurement on which the entity bid or quoted, and when; and (4) Entity’s status as a MBE/WBE1 or non-MBE/WBE. The exemption found at § 33.501(c) is as follows: A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal year, is exempt from the paragraph (b) of this section requirement t o create and maintain a bidders list. Also, a recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the paragraph (b) of this section bidders list requirement of this subpart to an entity receiving an identified loan in an amount of $250,000 or less, or to an entity receiving more than one identified loan with a combined total of $250,000 or less in any one fiscal year. This exemption is limited to the paragraph (b) of this section bidders list requirements of this subpart. 1 Qualified Women and Minority business enterprises may be found on the Internet at www.omwbe.wa.gov or by contacting the Washington State Office of Minority and Women’s Enterprises at 360-704-1181. Page 114 of 140 DWL26037 City of Pasco Page 23 of 31 Attachment V: Certification Regarding Debarment DWSRF Loan Contract (Municipal) v1 ATTACHMENT V: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS United States Environmental Protection Agency Washington, DC 20460 EPA Project Control Number The terms, “covered transaction, debarred, suspended, ineligible, lower tier covered transaction, person, primary covered transaction, principal, and voluntarily excluded”, as used in this attachment, are defined in the rules implementing Executive Order 12549, including 13 CFR § 400.109. You may contact DOH for help getting a copy of these regulations. BORROWER, defined as the primary participant and it principals, certifies by signing below that to the best of its knowledge and belief they: A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; B. Have not within a three-year (3) period preceding this CONTRACT, been convicted of or had a civil judgment against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; C. Are not presently indicted for or otherwise criminally or civilly charged by a government entity (federal, state, or local) with commission of any of the offenses described in this attachment; and, D. Have not within a three-year period (3) preceding the signing of this CONTRACT had one or more public transactions (federal, state, or local) terminated for cause or default. Prior to awarding contracts for the PROJECT, BORROWER must verify that neither the contractor’s busines s name(s) nor the names of its principals are in the Federal Excluded Parties List System for Ineligible Professionals and Debarred Contractors (www.SAM.gov). BORROWER must keep documentation in the PROJECT files and provide a copy to the DOH Contract Manager. BORROWER will include the language below without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: The lower tier contractor certifies, by signing this CONTRACT that neither it nor its p rincipals are debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. I understand that a false statement on this certification may be ground for rejection of this proposal or termination of the award. In addition, under 18 USC Sec. 1001, a false statement may result in a fine or imprisonment for up to 5 years, or both. Typed or Printed Name & Title of Authorized Representative __________________________________________________________________ Signature of Authorized Representative Date I am unable to certify to the above statements. My explanation is attached. Page 115 of 140 DWL26037 City of Pasco Page 24 of 31 Attachment VI: DWSRF Eligible Project Costs DWSRF Loan Contract (Municipal) v1 ATTACHMENT VI: DWSRF ELIGIBLE PROJECT COSTS Must be directly attributable to the project. 1. The costs for complying with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 2. DWSRF loan fees. 3. The purchase of a portion of another system’s capacity, if it is the most cost effective solution (limited to publicly owned (municipal) systems). 4. Construction of reservoirs (clear wells) that are part of the treatment process and are collocated with the treatment facility. 5. Construction of distribution reservoirs (finished water). 6. Cost associated with restructuring or consolidation of existing water systems by publicly owned water systems. 7. Main extensions to connect to safe and reliable sources of drinking water. 8. Cost associated with collecting and preparing environmental assessment documents to obtain local permits. 9. Direct labor including related employee benefits: a. Salaries and wages (at actual or average rates) covering productive labor hours of employees of the borrower (excluding the administrative organization of the operating unit involved) for periods of time actively or incidentally engaged in pre-design engineering, design engineering, construction engineering, acquisition of rights of way, and the cleaning, sterilization or bacteriological testing of water system components prior to public use. The costs of services rendered by employees generally classified as administration/project management of the loan are considered a direct cost only when such employees are assigned the types of services described above and shall be limited to 3% or less of the project loan amount. b. Employee benefits relating to labor are considered a direct cost of construction projects. The following items may be included as employee benefits: • F.I.C.A. (Social Security) –employer’s share. • Retirement benefits. • Hospital, health, dental, and other welfare insurance. • Life insurance. • Industrial and medical insurance. • Vacation. • Holiday. • Sick leave. • Military leave and jury duty. Employee benefits must be calculated as a percentage of direct labor dollars. The computation of predetermined percentage rates to be applied to current labor costs must be based on the average of total employee benefits and total labor costs for the prior fiscal year and adjusted by known current year variations. c. Other than work identified in Number 9.a, no costs associated with labor performed by the borrower’s employees, including force account work, are eligible for financing assistance. 10. Contract engineering, planning, design, legal, and financial planning services. The Department of Health reserves the right to declare ineligible legal costs that are unreasonable and disproportionate to the project. 11. Contract construction work. 12. Direct vehicle and equipment charges at the actual rental cost paid for the equipment or, in the case of city or county-owned equipment, at the rental rates established by the local government’s “equipment rental and revolving fund” following the methods prescribed by the division of municipal corporations. However, such costs must be charged on a uniform basis to equipment used for all projects regardless of the source of funding. Cities with a population of eight thousand or less not using this type of fund are allowed the same rates as used by the State Department of Transportation. 13. Direct materials and supplies. 14. Other direct costs incurred for materials or services acquired for a specific project are eligible costs and may include, but are not limited to such items as: a. Telephone charges. b. Reproduction and photogrammetry costs. c. Video and photography for project documentation. d. Computer usage. e. Printing and advertising. 15. Other project related costs include: • Competitive Bidding. • Audit. • Insurance. • Prevailing wages. • Attorney fees. • Environmental Review. • Archaeological Survey. Water system plan costs are not eligible for reimbursement. Small water system management program and plan amendments costs are eligible for reimbursement. Projects may be designed to accommodate reasonable growth. This is generally the 20-year projection included in the system’s water system plan or small water system management program. Page 116 of 140 DWL26037 City of Pasco Page 25 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 ATTACHMENT VII: LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES Wage Rate Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113 -6) Preamble With respect to the Clean Water and Safe Drinking Water State Revolving Funds, EPA provides capitalization grants to each state which in turn provides subgrants or loans to eligible entities within the state. Typically, the subrecipients are municipal or other local governmental entities that manage the funds. For these types of recipients, the provisions set forth under Roman Numeral I, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients’ compliance with the wage rate requirements set forth herein, those subrecipients shall have the prima ry responsibility to maintain payroll records as described in Section 3(ii)(A), below and for complian ce as described in Section I-5. Occasionally, the subrecipient may be a private for profit or not for profit entity. For these types of recipients, the provisions set forth in Roman Numeral II, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients’ compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section II-3(ii)(A), below and for compliance as described in Section II-5. I. Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113 -6) For Subrecipients That Are Governmental Entities: The following terms and conditions specify how recipients will assist EPA in meeting its Davis -Bacon (DB) responsibilities when DB applies to EPA awards of financial assistance under the FY 2013 Continuing Resolution with respect to State recipients and subrecipients that are governmental entities. If a subrecipient has questions regarding when DB applies, obtaining the correct DB wage determinations, DB provisions, or compliance monitoring, it may contact Department of Health. If a State recipient needs guidance, they may obtain additional guidance from DOL’s web site at http://www.dol.gov/whd/. 1. Applicability of the Davis- Bacon (DB) prevailing wage requirements. Under the FY 2013 Continuing Resolution, DB prevailing wage requirements apply to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by a State water pollution control revolving fund and to any construction project carried out in whole or in part by assistance made available by a drinking water treatment revolving loan fund. If a subrecipient encounters a unique situation at a site that presents uncertainties regarding DB applicability, the subrecipient must discuss the situation with the recipient State before authorizing work on that site. 2. Obtaining Wage Determinations. (a) Subrecipients shall obtain the wage determination for the locality in which a covered activity subject to DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that subcontractors follow the wage determination incorpo rated into the prime contract. (i) While the solicitation remains open, the subrecipient shall monitor www.wdol.gov weekly to ensure that the wage determination contained in the solicitation remains current. The subrecipients shall amend the solicitation if DOL issues a modification more than 10 days prior to the closing date (i.e. bid opening) for the solicitation. If DOL modifies or supersedes the applicable wage determination less than 10 days prior to the closing date, the subrecipients may request a finding from the State recipient that there is not a reasonable time to notify interested contractors of the modification of the wage determina tion. The State recipient will provide a report of its findings to the subrecipient. (ii) If the subrecipient does not award the contract within 90 days of the closure of the solicitation, any modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be effective unless the State recipient, at the request of the subrecipient, obtains an extension of the 90 day period from DOL pursuant to 29 CFR 1.6(c) (3) (iv). The subrecipient shall monitor www.wdol.gov on a weekly Page 117 of 140 DWL26037 City of Pasco Page 26 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 basis if it does not award the contract within 90 days of closure of the solicitation to ensure that wage determinations contained in the solicitation remain current. (b) If the subrecipient carries out activity subject to DB by issuing a task order, work assignment or similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation, the subrecipient shall insert the appropr iate DOL wage determination from www.wdol.gov into the ordering instrument. (c) Subrecipients shall review all subcontracts subject to DB entered into by prime contractors to verify that the prime contractor has required its subcontractors to include the applicable wage determinations. (d) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a subrecipient’s contract after the award of a contract or the issuance of an ordering instrument if DOL determines that the s ubrecipient has failed to incorporate a wage determination or has used a wage determination that clearly does not apply to the contract or ordering instrument. If this occurs, the subrecipient shall either terminate the contract or ordering instrument and issue a revised solicitation or ordering instrument or incorporate DOL’s wage determination retroactive to the beginning of the contract or ordering instrument by change order. The subrecipient’s contractor must be compensated for any increases in wages resulting from the use of DOL’s revised wage determination. 3. Contract and Subcontract provisions. (a) The Recipient shall insure that the subrecipient(s) shall insert in full in any contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a treatment work under the CWSRF or a construction project under the DWSRF financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in § 5.1 or the FY 2013 Continuing Resolution, the following clauses: (1) Minimum wages. (i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis -Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular we ekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Borrower and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. Subrecipients may obtain wage determinations from the U.S. Department of Labor’s web site, www.dol.gov. (ii)(A) The subrecipient(s), on behalf of EPA, shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The State award official shall approve a request for an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and Page 118 of 140 DWL26037 City of Pasco Page 27 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), documentation of the action taken and the request, including the local wage determination shall be sent by the subrecipient (s) to the State award official. The State award official will transmit the request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and to the EPA DB Regional Coordinator concurrentl y. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of receipt and so advise the State award official or will notify the State award official within the 30-day period that additional time is necessary. (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the subrecipient(s) do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including the views of all interested parties and the recommendation of the State award official, to the Administra tor for determination. The request shall be sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt of the request and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii)(B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fring e benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligat ions under the plan or program. (2) Withholding. The subrecipient(s), shall upon written request of the EPA Award Official or an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. (3) Payrolls and basic records. (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics wo rking at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classificatio n, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis -Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing Page 119 of 140 DWL26037 City of Pasco Page 28 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 apprentices or trainees under approved programs shall maintain written evi dence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to the subrecipient, that is, the entity that receives the sub -grant or loan from the State capitalization grant recipient. Such documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29 CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on the weekly payrolls. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s) for transmission to the State or EPA if requested by EPA, the State, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the subrecipient(s). (B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and f ringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available fo r inspection, copying, or transcription by authorized representatives of the State, EPA or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. (4) Apprentices and trainees-- (i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Offic e of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually Page 120 of 140 DWL26037 City of Pasco Page 29 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classif ication. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed un til an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the wor k performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. (5) Compliance with Copeland Act requirements. The Borrower must comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. (6) Subcontracts. The Borrower and/or subcontractor must insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontra cts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontrac tor as provided in 29 CFR 5.12. (8) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis -Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. Page 121 of 140 DWL26037 City of Pasco Page 30 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 (9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes will be resolved according to the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, the U.S. Department of Labor, or the employees or their representatives. (10) Certification of eligibility. (i) By entering into this contract, Borrower certifies that neither it (nor he or she) nor any person or firm who has an interest in the Borrower’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC 1001. 4. Contract Provision for Contracts in Excess of $100,000. (a) Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in paragraphs (a)(1), (2), (3), and (4) of this section in full in any contract in an amount in excess of $100,000 and subject t o the overtime provisions of the Contract Work Hours and Safety Standards Act. Th ese clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contract ing for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one -half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a)(1) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual labor er or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a)(1) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard w orkweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a)(1) of this section. (3) Withholding for unpaid wages and liquidated damages. The subrecipient, upon written request of the EPA Award Official or an authorized representative of the Department of Labor, shall withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b)(2) of this section. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a)(1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a)(1) through (4) of this section. (b) In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the Subrecipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contrac t for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Further, the Subrecipient shall insert in any such contract a clause providing hat the records to be maintained under this paragraph shall be made available by the Page 122 of 140 DWL26037 City of Pasco Page 31 of 31 Attachment VII: Labor Standards Provisions DWSRF Loan Contract (Municipal) v1 contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job. 5. Compliance Verification (a) The subrecipient shall periodically interview a sufficient number of employees entitled to DB prevailing wages (covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR 5.6(a)(6), all interviews must be conducted in confidence. The subrecipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on request. (b) The subrecipient shall establish and follow an interview schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. Subrecipients must conduct more frequent interviews if the initial interviews or other information indicated that there is a risk that the contractor or subcontractor is not complying with DB. Subrecipients shall immediately conduct interviews in response to an alleged violation of the prevail ing wage requirements. All interviews shall be conducted in confidence." (c) The subrecipient shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that contractors or subcontractors are paying the appropriate wage rates. The subrecipient shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, if practica ble, the subrecipient should spot check payroll data within two weeks of each contractor or subcontractor’s submission of its initial payroll data and two weeks prior to the completion date the contract or subcontract. Subrecipients must conduct more freq uent spot checks if the initial spot check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In addition, during the examinations the subrecipient shall verify evidence of fringe benefit plan s and payments thereunder by contractors and subcontractors who claim credit for fringe benefit contributions. (d) The subrecipient shall periodically review contractors and subcontractors use of apprentices and trainees to verify registration and certification with respect to apprenticeship and training programs approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and (c) above. (e) Subrecipients must immediately report potential violations of the DB prevailing wage requirements to the Department of Health and to the appropriate DOL Wage and Hour District Office listed at https://www.dol.gov/whd/WHD_district_offices.pdf. Page 123 of 140 AGENDA REPORT FOR: City Council June 28, 2021 TO: Dave Zabell, City Manager City Council Workshop Meeting: 7/12/21 FROM: Steve Worley, Director Public Works SUBJECT: Resolution - Sole Source Approval - Citywide Traffic Signal Improvements Phase Two Project I. REFERENCE(S): Resolution Sole Source Approvals 1. Polara Navigator 2-Wire Push Button Station 2. Cobalt 2100 NEMA Traffic Controller with Cobalt Software 3. System and Detecting Radar and Video Vector Vantage Iteris Accessories II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: The project is funded by three grants; Highway Infrastructure Program (HIP), Surface Transportation Program (STP) and Transportation Alternative Program (TAP) along with a local match. A summary of the construction funding is shown below: Construction Grant Type Grant Amount Local Match Total Amount HIP $405,987.00 $54,808.00 $460,795.00 STP $2,150,769.00 $415,990.00 $2,566,759.00 TAP $146,891.00 $22,925.00 $169,816.00 Totals: $2,703,647.00 $493,723.00 $3,197,370.00 The proposed sole source components (signal controller, vehicle detection system, and pedestrian push buttons) are included in the project cost estimate and are not anticipated to increase project costs. Page 124 of 140 Anticipated cost for each component: 1. Polara Navigator 2-wire Push Button Station: $400 per each, for a total of $33,600 in this project 2. Cobalt 2100 NEMA traffic controller with Cobalt software: $25,000 per each, for a total of $525,000 in this project 3. Iteris vantage vector video and radar detecting system and accessories: $2,500 per each, for a total of $210,000 in this project. IV. HISTORY AND FACTS BRIEF: The proposed sole sourced signal controller, vehicle detection system, and pedestrian push buttons are consistent with the ones specified and installed for Citywide Traffic Signal Improvements Phase One Project, which was constructed in 2018. A citywide traffic signal project like this one typically utilizes consistent components throughout the complete systems for multiple reasons. The most important reasons are: • Stocking fewer brands of replacement/spare components, and • Staff’s ability to perform maintenance and emergency repairs when required. • Establishing adequate, working knowledge of the system is critical for repairing a damaged system in an expeditious manner and minimizing risk to the public. • Ensuring compatibility of components throughout the system for adequate sequencing and programing of signals along corridors. During the Phase One Project, the City’s consultant evaluated different models and determined these to be the best value for the City considering co st, performance, and durability. The City is authorized by RCW 35.23.352(9) and RCW 39.04.280(1)(a) to waive competitive bidding of purchases from a sole source supplier and purchases involving special facilities. Sole source request worksheets have been prepared and included in this agenda packet. V. DISCUSSION: Staff recommends approval of the attached resolution, authorizing the City to require bidders of the Citywide Traffic Signal Improvements Phase Two Project to provide the sole source items listed above when constructing the project. Page 125 of 140 Resolution - 1 RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, WAIVING THE COMPETITIVE BIDDING REQUIREMENTS AND APPROVING SPECIFICATIONS REQUIRING SPECIFIC SOLE SOURCED COMPONENTS OF THE TRAFFIC SIGNAL SYSTEM FOR THE TRAFFIC SIGNAL IMPROVEMENTS – CITY WIDE PHASE TWO PROJECT. WHEREAS, it is critical for the City to have proper, compatible, and consistent traffic signal system components across the traffic network; and WHEREAS, the City received $4,296,331 of federal funding for design, right of way acquisition, and construction of the Traffic Signal Improvements – City Wide Phase one and two projects; and WHEREAS, the City previously utilized $1,333,184 of federal funding to design and construct the Traffic Signal Improvements – City Wide Phase one project, which was completed in 2018; and WHEREAS, the City has $2,963,147 of federal funding to design, acquire right of way and construct the Traffic Signal Improvements – City Wide Phase two project; and WHEREAS, a city-wide traffic signal improvement project aims at utilizing standardized and compatible components throughout the traffic signal system; and WHEREAS, minimizing the number of different, complex signal controllers is important for City staff to maintain knowledge and ability to operate and repair signal controllers at critical times, and minimize impacts to the traveling public as well as mitigate safety issues when unexpected failures occur and replacements must take place in an expeditious manner; and WHEREAS, the City has determined that the use of alternate suppliers would not be consistent or compatible with existing equipment, inventory, systems programs, or services; and WHEREAS, the design engineer for the project has evaluated multiple options and concluded that maintaining consistency on key components of the Traffic Signal Improvements City Wide Phase two project is crucial for signal maintenance and operation; and WHEREAS, the Council of the City of Pasco hereby determines that the paramount considerations in the acquisition of the above mentioned items is compatible with existing equipment, inventory, systems programs or services; and WHEREAS, the use of the items listed is critical for minimal impact on the traveling public, as detailed in the attached table (Exhibit A) and Sole Source Worksheets, to support current operation standards, this purchase becomes subject to waiving competitive bidding requirements per RCW 35.23.352(9) and RCW 39.04.280(1)(a) sole source; and Page 126 of 140 Resolution - 2 WHEREAS, RCW 39.04.280(2)(a) requires that prior to utilizing the sole source exemption, the City Council must first adopt a resolution reciting the factual basis supporting the exemption; and WHEREAS, the City Council pursuant to 39.04.280(2)(a) finds that such factual basis as described herein and detailed in the attached table (Exhibit A), Sole Source Worksheets, and incorporated herein by this reference, does support application of the sole source exemption as pertaining to the purchase of the items listed from the specified vendors. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. The City Council of Pasco hereby find the above-described circumstance is justification for the waiver of bidding requirements under the authority of RCW 35.23.352(9) and pursuant to sole source providers (RCW 39.04.280(1)(a)) and, therefore, the bidding requirement is hereby waived for the purchase of the items listed from the specified vendors. Section 2. That the City of Pasco Public Works Department include the sole source requirement in the technical specifications for the Traffic Signal Improvements – City Wide Phase two project. The sole source items are competitively priced and are not anticipated to increase the project cost. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, this ___ day of July 2021. _____________________________ Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ __________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 127 of 140 EXHIBIT A Section Manufacturer Model Description 9-29-18(3) Video Detectors Iteris Vantage Vector Video and Radar Detector 9-29.19 Pedestrian Push Buttons Polara Navigator 2-Wire Push Button Station 8-20.3(14)A Signal Controllers Econolite Cobalt Signal Controller Page 128 of 140 E V D D j DJ D D D 9 D E 2 DD 1 D Y :14, A SOLE SOURCE WORKSHEET Requisition Item:Polara Navi ator 2-Wire Push Button Station Requisition No. Prior Purchase Order Number (if item had been approved previously): 1.Please describe the items and its function:The Polara Navi ator 2-Wire Push Button Station rovides for the safe navi ation of intersectionsb edestrians b alertin the s stem that edestrians are resent. It also noti?es ADA com liant access for edestrians with audible and vibration features to assist in the safe crossin for edestrians. 2.This is a sole source because: Sole provider of a licensed or patented good or service x Sole provider of items that are compatible with existing equipment,inventory,systems, programs or services X Sole provider of goods and services for which the City has established a standard Sole provider of goods or services that will meet the specialized needs of the City or perform the intended function (please detail below or in an attachment) The vendor/distributor is a holder of a used item that would represent good value and is advantageous to the City (please attach information on market price survey,availability, etc.) 3.What necessary features does this vendor provide which are not available from other vendors? Please be speci?c. For the ro osed ush button s stem the most im ortant reason to establish a standardized manufacturer and model is to allow for fewer different brands of re lacement/s are com onents and staffs abilit to erform maintenance and emer enc re airs when re uired.Pedestrian ush buttons are re ularl dama ed and re uire re lar maintenance and re air.Stockin re lacement arts and havin ade uate workin knowled e of the s stem is critical for re airin a dama ed s stem and minimizin im act to the ublic.The Polara Push Buttons were used in the Traffic Si nal Im rovements —Cit Wide Phase 1 ro'ect which was constructed in 2018.The meet was intended to be constructed without hasin however ri ht of wa re uirements for a roximatel half of the intersections resulted in the Ci phasing the project. 4.What steps were taken to verify that these features are not available elsewhere? While similar e ui ment is offered b other manufacturers the Cit ’s intent was to standardize on com onents. x Other brands/manufacturers were examined (please list phone numbers and names,and explain why these were not suitable). The desi 11 en ineer on the ro'ect evaluated multi le 0 tions such as the Cam bell Com an Guardian 5.0 FS 57 Cam bell Com an Sales 208-345-7459 Novax Industries Co oration IntelliCross APS ovax Industries Co oration 604-525-5644 .Durin Phase I of the meet the Cit ‘s consultant evaluated different models.Standardization of the traf?c si al com onents was identi?ed as a need and it was determined that the Polara Navi ator 2—wire ush button station brou ht the best value to the project. Page 129 of 140 //J Z Other vendors were contacted (please list phone numbers and names,and explain why these were not suitable). 5.Sole source vendor certi?es that the City is getting the lowest price offered for the item. Antici ated cost for this com onent:Polara Navi ator 2-wire Push Button Station 400 er each for a total of $33 600 in this ro'ect. Certi?cation of Need This recommendation for sole source is based upon on objective review of the product/service required and appears to be in the best interest of the City.I know of no con?ict of interest on my part of personal involvement in any way with this request.No gratuities,favors or comprising actions have been taken. Neither has my personal familiarity with particular brands,types or equipment,materials or ?nn been a deciding in?uence on my request to sole source this purchase. By:Date: Page 130 of 140 ED 2 ET B E E 9. E D [3 VB 2 D V APPENDIX A SOLE SOURCE WORKSHEET Requisition Item:Cobalt 2100 NEMA Traffic Controller with Cobalt Software Requisition No. Prior Purchase Order Number (if item had been approved previously): 1.Please describe the items and its function:The Cobalt 2100 NEMA Traffic Controller with Cobalt Software is a hardware and software acka e used to control and intelli entl o erate a traffic control si rial.It controls the timin and o eration of traffic si rials and edestrian li hts at all four corners of a iven intersection. 2.This is a sole source because: Sole provider of a licensed or patented good or service X Sole provider of items that are compatible with existing equipment,inventory,systems, orograms or services x Sole provider of goods and services for which the City has established a standard Sole provider of goods or services that will meet the specialized needs of the City or aerform the intended function (please detail below or in an attachment) The vendor/distributor is a holder of a used item that would represent good value and is advantageous to the City (please attach information on market price survey,availability, etc.) 3.What necessary features does this vendor provide which are not available from other vendors? Please be specific. The reasons for standardizin on these controllers include needin to stock fewer brands of re lacement com orients staffs abilit to erforrn maintenance and understand the 0 eration of the e ui merit and ensurin there is continuit across the s stern for future use of interconnect s stems that links all si rials to ether.Minimizin the number of different com lex si rial controllers is im ortant for Cit staff to maintain knowled e and abilit to 0 erate re air si rial controllers at critical times and minimize im~acts to the travellin ublic.The ro osed traffic controllers were utilized in the Traffic Si rial lm rovements —Cit Wide Phase 1 ro'ect which was constructed in 2018.The ro'ect was intended to be constructed at once however ri ht of wa re uirements for a roximatel half of the intersections resulted in the Cit hasin the ro'ect.A lar e cit wide si rial ro'ect like this one aims at standardizin the hardware software and other critical com orients across the traffic si al s stem. Com atibilit and abilit to ex editiousl re air the s stem in case of emer enc is crucial to traffic safety. 4.What steps were taken to verify that these features are not available elsewhere? While controllers are offered b other manufacturers the Ci ’s intent was to standardize on com orients for the traffic si al s stem throu hout the Cit . x Other brands/manufacturers were examined (please list phone numbers and names,and explain why these were not suitable). The desi ri en ineer on the ro'ect evaluated multi le 0 tions includin Siemens advanced traffic si rial controllers model EAGLE 2070 Series distributedb Tern le Inc.256-353-4578 and Johnson Controls Traffic Si rial Controllers —ECLIPSE controller Johnson Controls Inc.414-524-1200 . Page 131 of 140 Durin Phase 1 of the meet the Cit ’s consultant evaluated different models and concluded that the Cobalt 2100 NEMA Traffic Controller with Cobalt Software were the best ?t for the Ci ’s needs. Other Vendors were contacted (please list phone numbers and names,and explain why these were not suitable). 5.Sole source Vendor certi?es that the City is getting the lowest price offered for the item. Antici ated cost for this corn onent:Cobalt 2100 NEMAtraff1c controller with Cobalt software:$25 000 er each for a total of 525 000 in this ro‘ect. 4 Certi?cation of Need This recommendation for sole source is based upon on objective review of the product/service required and appears to be in the best interest of the City.I know of no con?ict of interest on my part of personal involvement in any way with this request.No gratuities,favors or comprising actions have been taken. Neither has my personal familiarity with particular brands,types or equipment,materials or ?rm been a deciding in?uence on my request to sole source this purchase. By:Date: Page 132 of 140 Y D EnD DD (W APPENDIX A SOLE SOURCE WORKSHEET Requisition Item:Iteris Vanta e Vector Video and Radar Detection S stem and Accessories Requisition No. Prior Purchase Order Number (if item had been approved previously): 1.Please describe the items and its function:The Iteris Vanta e Vector Video and Radar Detection S stem and Accessories is a h brid detection sensor that combines the use of video and radar to detect vehicles at intersections.This detection s stem inte ates with the traf?c si nal controller to more ef?cientl o crate the traffic si al timin based on the vehicles 0 eratin at different le s of the intersection.Accessories for the s stem include necessa cables hardware clam s etc. 2.This is a sole source because: Sole provider of a licensed or patented good or service X Sole provider of items that are compatible with existing equipment,inventory,systems, programs or services X Sole provider of goods and services for which the City has established a standard Sole provider of goods or services that will meet the specialized needs of the City or perform the intended function (please detail below or in an attachment) The vendor/distributor is a holder of a used item that would represent good value and is advantageous to the City (please attach information on market price survey,availability, etc.) 3.What necessary features does this vendor provide which are not available from other vendors? Please be specific. For the ro osed video and radar detection S stem the most im ortant reasons for sole sourcin include: needin to stock fewer brands of re lacement corn onents and staffs abili to erform emer enc re airs and maintenance as needed.Minirnizin the number of different com onents on the traf?c si nal s stem is im ortant to reduce com atibilit issues and to maintain staff knowled e and abilit to o erate and re air the si nal vehicle detection s stem in an ex editious manner.Pro er functionin of the traffic si nal detection s stem and the abilit to erform a re air in a timel manner increases safet .The ro osed traffic detection sensors were im lemented in the Traf?c Si al Irn rovements —Cit Wide Phase 1 meet which was constructed in 2018.The meet was intended to be constructed as one however ri ht of wa re uirements for a roxirnatel half of the intersections resulted in the Cit hasin the meet.A lar e cit wide si nal ro'ect like this one aims at standardizincom onents in the traf?c si al s stems. 4.What steps were taken to verify that these features are not available elsewhere? While similar e ui ment is offered b other manufacturers the Ci ’s intent was to standardize on com onents. X Other brands/manufacturers were examined (please list phone numbers and names,and explain why these were not suitable). The desi 11 en ineer on the ro'ect evaluated multi le o tions includin Wavetronix SmartSensor Matrix avetronix Inc.801-734-7222 and Ima eSensin RTMS Sx-300 Ima eSensin Inc.651-603-7700 Page 133 of 140 Y RY Durin Phase 1 of the meet the Cit was 0 en to evaluatin different models.Durin Phase 1 of the ro'ect the Cit ‘s consultant evaluated different models.Standardization of the traf?c si nal com onents was identi?ed as a need and it was determined that the Iteris Vanta e Vector Video and Radar Detection S stem and Accessories brou ht the best value to the ro'ect. Other vendors were contacted (please list phone numbers and names,and explain why these were not suitable). 5.Sole source vendor certi?es that the City is getting the lowest price offered for the item. Antici ated cost for this com onent:Iteris vanta e vector video and radar detectin s stem and accessories: $2 500 er each for a total of $210 000 in this ro‘ect. Ce tification of Need This recommendation for sole source is based upon on objective review of the product/service required and appears to be in the best interest of the City.I know of no con?ict of interest on my part of personal involvement in any way with this request.No gratuities,favors or comprising actions have been taken. Neither has my personal familiarity with particular brands,types or equipment,materials or firm been a deciding in?uence on my request to sole source this purchase. By:Date: Page 134 of 140 QUALITY OF LIFE Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure by: • Using Community Development Block Grant (CDBG) and other public and private capital to revitalize older neighborhoods and safe routes to essential services. • Continuing efforts toward designing, siting, programming needs, and site selection for a community center and pursuing acquisition of land for future community park. • Developing Phase I of the A Street Sporting Complex and continue efforts to provide additional soccer and sports fields. • Coordinating with the Pasco Public Facilities District to develop a public education campaign, financial analysis and prepare a ballot measure concerning the development of a regional aquatic facility for consideration by the people. • Completing construction of a new animal control facility. • Ongoing efforts to improve efficiency and effectiveness of public resources in the delivery of municipal services, programs, and long-term maintenance and viability of public facilities. • Collaborating with the Inclusion, Diversity and Equity Commission and community leaders to enhance engagement efforts and organizational cultural competency. • Updating design standards for the development of new neighborhoods and re-development to promote greater neighborhood cohesion through design elements, e.g.: walkability, aesthetics, sustainability, and community gathering spaces. • Updating Parks and Facilities Comprehensive Plan to include: public facilities inventory, needs assessment, level of service, and centers evaluation. • Teaming with local and regional partners to develop a Housing Action Plan with a focus on strategies that emphasize affordable housing. FINANCIAL SUSTAINABILITY Enhance the long-term financial viability, value, and service levels of services and programs, including: • Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit. • Continuation of cost of service and recovery targets in evaluating City services. • Ongoing evaluation of costs, processes and performance associated with delivery of City services including customer feedback and satisfaction, staffing, facilities, and partnership opportunities. • Instilling and promoting an organizational culture of customer service across all business lines. • Updating policies relating to urbanization of the unincorporated islands to assure consistency with long-range planning, community safety, and fiscal sustainability. City Council Goals 2020-2021 Page 135 of 140 COMMUNITY SAFETY Preserve past improvements and promote future gains by: • Developing a Comprehensive Police Strategic Master Plan through a transparent process to evaluate future service levels of the department to assure sustainability, public safety, and crime control over the next 5-10 years. • Collaborating with regional and community partners to evaluate and implement strategies to reduce the incidence of homelessness. • Leveraging and expanding partnerships to maintain and enhance behavioral health services to community members in crisis being assisted by police and fire. • Continuing efforts to improve police and community relations. • Working to achieve and maintain target fire response times through operational improvements and long-range strategic planning of facilities and staffing. • Focusing on the long-term goal of sustaining a Washington State Rating Bureau Class 3 community rating. • Leveraging infrastructure database of sidewalks, streetlights and pavement conditions along with evaluating policies and methods to address needs and inequities. COMMUNITY TRANSPORTATION NETWORK Promote a highly-functional multi-modal transportation network through: • Commencement and completion of construction of the Lewis Street Overpass project. • Continued emphasis on improvements in Road 68/I-182/Burden Blvd. corridor to improve operation and safety. • Data-driven pro-active neighborhood traffic calming efforts. • Continued collaboration with Ben Franklin Transit to enhance mobility and access. • Completion of a Transportation System Master Plan and utilization of its recommendations to develop policies, regulations, programs, and projects that provide for greater connectivity, strategic investment, mobility, multi-modal systems, accessibility, efficiency and safety. ECONOMIC VITALITY Promote and encourage economic vitality by supporting: • Downtown revitalization efforts of Downtown Pasco Development Authority (DPDA), post-COVID restart, and City initiatives such as Downtown Master Plan process and sign code modifications. • The construction of Peanuts Park and Farmers Market and continued efforts to pursue streetscape and gateway upgrades. • The completion of the Comprehensive Land Use Plan Update and Broadmoor Master Plan efforts, adoption of Urban Growth Area expansion alternative, implementation of adopted long-range planning efforts with appropriate analysis and adoption of planning actions including: zoning code changes, phased sign code update, and development regulations and standards. • Increased efforts to promote the community as a desirable place for commercial and industrial development by promoting small business outreach and assistance, predictability in project review, and excellent customer service. • Partnerships and encouragement of Department of Natural Resources (DNR) to facilitate development of the remaining state-owned properties at Road 68/I-182. Page 136 of 140 • Continued coordination with the Port of Pasco to complete and implement a waterfront-zoning plan and provide for public infrastructure. • Active partnerships in the planning and development of strategies to promote tourism and deployment of assets to spur economic activity. • In concert with community partners, development of a comprehensive economic development plan. COMMUNITY IDENTITY Identify opportunities to enhance community identity, cohesion and image through: • Continued efforts of community surveying through traditional methods and the application of new technologies. • Providing opportunities for community engagement through boards, commissions, volunteer opportunities, social media, forums, and other outlets. • Enhanced inter-agency and constituent coordination developed during the pandemic. • Continued efforts of the community identity/image enhancement campaign to include promotion of community and organizational successes. • Enhanced participation and support of cultural events occurring within the community. • Support of the Arts and Culture Commission in promoting unity and the celebration of diversity through art and culture programs. For more information, visit www.pasco-wa.gov/councilgoals Page 137 of 140 CALIDAD DE VIDA Promover una vida de buena calidad a través de programas de calidad, servicios e inversiones y reinversiones adecuadas en la infraestructura de la comunidad al: • Utilizar una Community Development Block Grant (CDBG) (Concesión de Ayuda Federal para el Desarrollo Comunitario) y otro capital público y privado para renovar las vecindades antiguas y las rutas seguras a los servicios esenciales. • Continuar los esfuerzos hacia el diseño, las obras de construcción, las necesidades programáticas, y la elección de dichas obras de construcción, para un centro comunitario y comprar el terreno para un futuro parque comunitario. • Desarrollar la 1era Fase del Sporting Complex (Complejo Deportivo) de la Calle A y continuar los esfuerzos de proporcionar más campos de fútbol y de otros deportes. • Coordinar con el Pasco Public Facilities District (Distrito de las Instalaciones Públicas de Pasco) para desarrollar una campaña de educación pública, un análisis financiero, y preparar una propuesta sobre el desarrollo de una instalación acuática regional para que sea considerada por el público. • Terminar la construcción de una nueva instalación para el control de animales. • Continuar los esfuerzos para mejorar la eficiencia y la eficacia de los recursos públicos en la entrega de servicios municipales, programas, y el mantenimiento y la viabilidad a largo plazo de instalaciones públicas. • Colaborar con la Inclusion, Diversity and Equity Commission (Comisión de Inclusión, Diversidad, y Equidad) y con los líderes comunitarios para mejorar los esfuerzos de participación y la capacidad cultural organizacional. • Actualizar los estándares de diseño para el desarrollo de nuevas vecindades y el redesarrollo para promover más cohesión de las vecindades a través de elementos de diseño, p. ej.: viabilidad peatonal, evaluación de las necesidades, sustentabilidad, y lugares donde se puedan reunir los miembros de la comunidad. • Actualizar el Parks and Facilities Comprehensive Plan (Plan Comprehensivo de los Parques y las Instalaciones) para que incluya: un inventario de instalaciones públicas, una evaluación de las necesidades, el nivel de servicio, y la evaluación del centro. • Trabajar en equipo con colaboradores regionales para desarrollar un Housing Action Plan (Plan de Acción para Viviendas) con un enfoque en las estrategias que enfatizan viviendas económicas. SUSTENTABILIDAD FINANCIERA Mejorar la sustentabilidad financiera a largo plazo, el valor, y los niveles de servicios y programas, incluyendo: • La evaluación regular de los servicios y de los programas para confirmar la importancia de la comunidad, la capitalización adecuada, y el costo-beneficio. Metas del Concilio de la Ciudad del 2020-2021 Page 138 of 140 • La continuación del costo por el servicio y de las metas de recuperación al evaluar los servicios de la Ciudad. • La evaluación continua de los costos, los procesos y el desempeño relacionado con la entrega de los servicios de la Ciudad incluyendo la retroalimentación y la satisfacción del cliente, el personal, las instalaciones, y las oportunidades colaborativas. • Inculcar y promover una cultura organizacional de servicio al cliente a lo largo de todas las líneas de negocio. • Actualizar las políticas relacionadas con la urbanización de las islas no incorporadas para asegurar consistencia con la planificación a largo plazo, la seguridad comunitaria, y la sustentabilidad fiscal. SEGURIDAD COMUNITARIA Preservar las mejorías anteriores y promover las ganancias futuras al: • Desarrollar un Comprehensive Police Strategic Master Plan (Plan Maestro Estratégico Comprehensivo Policial) a través de un proceso transparente para evaluar los niveles futuros de servicio del departamento para asegurar sustentabilidad, seguridad pública, y control de crímenes durante los siguientes 5-10 años. • Trabajar con colaboradores regionales y comunitarios para evaluar e implementar estrategias para reducir los casos de personas sin techo. • Hacer uso y ampliar las colaboraciones para mantener y mejorar los servicios de salud conductual a los miembros de la comunidad que se encuentran en medio de una crisis, ayudados por la policía y por los bomberos. • Continuar los esfuerzos para mejorar la relación con la policía y con la comunidad. • Trabajar para lograr y mantener el tiempo de reacción de los bomberos a través de mejorías operacionales y la planificación estratégica de instalaciones y personal a largo plazo. • Enfocarse en la meta a largo plazo de mantener una clasificación de la comunidad Clase 3 del Washington State Rating Bureau (Departamento de Clasificación del Estado de Washington). • Utilizar la base de datos de la infraestructura de las banquetas, los faroles, y las condiciones del pavimento, como también evaluar las políticas y los métodos para tratar las necesidades y las injusticias. RED DE TRANSPORTE COMUNITARIO Promover una red de transporte extremadamente funcional y multimodal a través de: • El comienzo y el término de la construcción del proyecto Lewis Street Overpass. • El énfasis continuo en las mejorías de la ruta Road 68/I-182/Burden Blvd. para mejorar la operación y la seguridad. • Los esfuerzos proactivos basados en datos para calmar el tráfico en las vecindades. • La colaboración continua con Ben Franklin Transit para mejorar la movilidad y el acceso. • El término del Transportation System Master Plan (Plan Maestro del Sistema de Transporte) y la utilización de sus recomendaciones para desarrollar políticas, reglas, programas, y proyectos que proporcionan más conectividad, inversiones estratégicas, movilidad, sistemas multimodales, accesibilidad, eficiencia, y seguridad. Page 139 of 140 VITALIDAD ECONOMICA Promover y motivar la vitalidad económica al apoyar: • Los esfuerzos de renovación de la Downtown Pasco Development Authority (DPDA) (Autoridad de Desarrollo del Centro de Pasco), el reinicio después de COVID, y las iniciativas de la Ciudad como el proceso del Downtown Master Plan (Plan Maestro del Centro) y las modificaciones de los códigos de anuncios. • La construcción del Peanuts Park and Farmers Market (Parque Peanuts y el Mercado) y los esfuerzos continuos para discutir paisajes urbanos y actualizaciones de entradas. • El término de los esfuerzos de la Comprehensive Land Use Plan Update (Actualización Comprehensiva del Uso de Terrenos) y los esfuerzos del Broadmoor Master Plan (Plan Maestro de Broadmoor), la adopción de la alternativa de la expansión de Urban Growth Area (Área del Crecimiento Urbano), la implementación de los esfuerzos de planificación a largo plazo con los análisis adecuados y la adopción de acciones de planificación incluyendo: los cambios a los códigos de zonas, la actualización de los códigos de los anuncios de las fases, y el desarrollo de las reglas y los estándares. • Más esfuerzos para promover a la comunidad como un lugar atractivo para el desarrollo comercial e industrial al fomentar el alcance y la ayuda a los negocios pequeños, la predictibilidad en la revisión de proyectos, y un excelente servicio al cliente. • Las colaboraciones y la motivación del Department of Natural Resources (DNR) (Departamento de Recursos Naturales) para facilitar el desarrollo de las propiedades restantes del estado en Road 68/I- 182. • La coordinación continua con el Port of Pasco (Puerto de Pasco) para terminar e implementar un plan de zonas costeras y proporcionar una infraestructura pública. • Las colaboraciones activas en la planificación y el desarrollo de estrategias para promover el turismo y la utilización de recursos para estimular actividad económica. • Junto con los colaboradores de la comunidad, crear un plan comprehensivo de desarrollo económico. IDENTIDAD COMUNITARIA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen a través de: • Los esfuerzos continuos para evaluar a la comunidad a través de los métodos tradicionales y la aplicación de nuevas tecnologías. • Proporcionar oportunidades para la involucración comunitaria a través de mesas directivas, comisiones, oportunidades para voluntarios, medios sociales, foros, y otros medios. • Una mejor coordinación entre las agencias y los constituyentes desarrollada durante la pandémica. • Los esfuerzos continuos de campañas para la mejoría de la identidad/imagen comunitaria que promuevan a la comunidad y a los éxitos organizacionales. • Una mejor participación y apoyo de los eventos culturales llevados a cabo dentro de la comunidad. • El apoyo de la Arts and Culture Commission (Comisión de Artes y Cultura) al promover la unidad y celebrar la diversidad a través de programas de arte y cultura. Para más información, visite www.pasco-wa.gov/councilgoals Page 140 of 140