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HomeMy WebLinkAbout2021.11.01 Council Meeting Packet AGENDA City Council Regular Meeting 6:00 PM - Monday, November 1, 2021 City Council Chambers & GoToWebinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Governor Inslee's Heathy Washington - Roadmap to Recovery, Phase 3 made in response to the COVID-19 emergency, currently allows for partial "in-person" meetings. Members of the public wishing to attend City Council meetings in-person will need to follow the Governor's protocol outlined in Proclamation No. 20-28.15. Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco- wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of each meeting. To listen to the meeting via phone, call (213) 929-4212 and use access code 398-399-253. City Council meetings 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. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Council members or the public, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. 6 - 17 (a) Approval of Meeting Minutes Page 1 of 217 To approve the minutes of the Pasco City Council Meeting held on October 18, 2021; and a Special Meeting & Workshop held on October 25, 2021. 18 - 19 (b) Bills and Communications To approve claims in the total amount of $5,211,215.38 ($2,574,291.51 in Check Nos. 244544-244810; $1,771,557.40 in Electronic Transfer Nos. 833303-833348, 833359-833419, 833426-833514, 833521- 833595, 833597, 833608-833609, 833622-833630; $10,617.38 in Check Nos. 53773-53780; $854,749.09 in Electronic Transfer Nos. 30167317-30167843). 20 - 28 (c) Resolutions - Process Water Reuse Facility (PWRF) Embankment Repair Change Order No. 5 for Quantity Adjustments/Reconciliation & Project Closeout To approve Resolution No. 4107, authorizing the City Manager to execute a fifth Change Order to the construction Contract with Apollo, Inc. for the Process Water Reuse Facility Embankment Repair project. To approve Resolution No. 4108, accepting work performed by Apollo, Inc., under contract for Project No. 20100, PWRF Embankment Repair. 29 - 44 (d) Resolution Setting the Time and Date to Consider the Thanksgiving Partnership Annexation (ANX 2021-002) To approve Resolution No. 4109, setting 7:00 PM, November 15, 2021, as the time and date for a public meeting to consider the Thanksgiving Partnership notice of intent to commence annexation of property located east of North Capitol Avenue approximately 1,400 feet south of Foster Wells Road. 45 - 57 (e) Resolution - Sponsorship Agreement for Utility Box Wraps with Spokane Teachers Credit Union (STCU) To approve Resolution No. 4110, authorizing the City Manager to execute a sponsorship agreement with Spokane Teachers Credit Union for art wraps of utility boxes. 58 - 62 (f) Resolution - Street Name Revision: Madison Park Planned Unit Development, Phase 7 To approve Resolution No. 4111, renaming Melita Lane to Philippi Lane and Lystra Lane to Nauvoo Lane in Madison Park Planned Unit Development, Phase 7. (RC) MOTION: I move to approve the Consent Agenda as read. 5. PROCLAMATIONS AND ACKNOWLEDGEMENTS Page 2 of 217 6. VISITORS - OTHER THAN AGENDA ITEMS - This item is provided to allow citizens the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. 7. REPORTS FROM COMMITTEES AND/OR OFFICERS (a) Verbal Reports from Councilmembers 63 - 67 (b) General Fund Monthly Report - August & September 2021 8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 68 - 83 (a) Ordinance - Amending Chapter 25.90 of the Pasco Municipal Code CONDUCT AN OPEN RECORD HEARING MOTION: I move to approve Ordinance No. 4556, Option __, amending Chapter 25.90 "C-2 Central Business District" of the Pasco Municipal Code, and further, authorize publication by summary only. 84 - 86 (b) *Public Meeting - SERP Requirement for PWRF Pretreatment Improvements Phase 1 - Potable Water and Electrical Improvements MOTION: I move to commence a public meeting for the Process Water Reuse Facility (PWRF) Improvements Project - Phase 1: Potable Water & Electrical Improvements project. 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 87 - 104 (a) *Resolution - Amendment No. 1 to DKS Professional Services Agreement for Design Phase 2A of I-182/Broadmoor Blvd Interchange Project MOTION: I move to approve Resolution No. 4112, authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement (PSA) with DKS Associates, Inc. (DKS) for Phase 2A of the I-82/Broadmoor Boulevard Interchange project. Page 3 of 217 105 - 140 (b) *Resolution - Design Build Institute of America Phase 1 Agreement with T Bailey, Inc. - Water Storage Reservoir Zone 3 Progressive Design Build MOTION: I move to approve Resolution No. 4113, authorizing the City Manager to execute the Design Build Institute of America Phase 1 Agreement with T Bailey, Inc. for the progressive design build services for the Zone 3 Water Storage Reservoir Project. 141 - 145 (c) *Resolution - Bid Rejection - Citywide Traffic Signal Improvements Phase 2 Project MOTION: I move to approve Resolution No. 4114, rejecting all bids for Bid No.17014 for the Citywide Traffic Signal Improvements Phase 2 project. 10. UNFINISHED BUSINESS 146 - 149 (a) Danilyuk Short Plat Sewer Service Requirement Appeal (APPL 2021-001) Continued from July 19, 2021 Council Meeting MOTION: I move to close the Appeal Hearing as the appellant has withdrawn the Appeal. 11. NEW BUSINESS 150 - 211 (a) 2022 Ad Valorem Tax Levy and General Fund Revenue Review 12. MISCELLANEOUS DISCUSSION 13. EXECUTIVE SESSION 14. ADJOURNMENT 15. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 212 - 217 (b) Adopted 2020-2021 Council Goals (Reference Only) (c) REMINDERS • Monday, November 8, 11:45 AM: Pasco Chamber of Commerce Membership Lunch Meeting – Pasco Red Lion Hotel Page 4 of 217 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 5 of 217 AGENDA REPORT FOR: City Council October 27, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Debby Barham, City Clerk Administrative & Community Services SUBJECT: Approval of Meeting Minutes I. REFERENCE(S): 10.18.21 & 10.25.21 Draft Council Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Meeting held on October 18, 2021; and a Special Meeting & Workshop held on October 25, 2021. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 217 MINUTES City Council Regular Meeting 7:00 PM - Monday, October 18, 2021 City Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Saul Martinez, Mayor. ROLL CALL Councilmembers present: Blanche Barajas, Craig Maloney, Saul Martinez, David Milne, Zahra Roach, and Pete Serrano. Councilmembers absent: Ruben Alvarado Staff present: Dave Zabell, City Manager; Adam Lincoln, Deputy City Manager; Colleen Chapin, Human Resources Director; Eric Ferguson, City Attorney; Bob Gear, Fire Chief; Zach Ratkai, Administrative & Community Services Director; Ken Roske, Police Chief; Richa Sigdel, Finance Director; Rick White, Community & Economic Development Director; Steve Worley, Public Works Director; and Debby Barham, City Clerk. The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA Approval of Meeting Minutes To approve the minutes of the Pasco City Council Meeting held on October 4, 2021 and Workshop held on October 11, 2021. Bills and Communications To approve claims in the total amount of $2,440,673.88 ($1,388,853.09 in Check Nos. 244286-244543; $167,720.82 in Electronic Transfer Nos. 833358, 833420-833424; $9,994.96 in Check Nos. 53764-53772; $874,095.01 in Electronic Transfer Nos. 30166786 -30167316; $10.00 in Electronic Transfer Nos. 827). Page 1 of 5Page 7 of 217 To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General Accounts, Miscellaneous Accounts, and Municipal Court (non - criminal, criminal, and parking) accounts receivable in the total amount of $282,358.32 and, of that amount, authorize $0.00 to be turned over for collection. Tourism Promotion Area (TPA) Update and 2022 Budget & Marketing Plan To approve the 2022 Marketing Plan and Operating Budget for the Tourism Promotion Area in the total amount of $1,871,914. Resolution - Reserve Center Lease Extension with the Port of Pasco To approve Resolution No. 4101, authorizing the City Manager t o sign and execute Amendment No. 1 to the term building lease between the Port of Pasco and the City of Pasco. Resolution - Amended Agreement with TCA, Inc. for Architectural and Engineering Services for Fire Department Facilities To approve Resolution No. 4102, approving the acceptance of Amendment No. 1 to the TCA Professional Services Agreement for Station No. 85 design. Resolution - Public Works Board $10M Loan Agreement - Zone 3 Storage Reservoir Construction To approve Resolution No. 4103, authorizing execution of the $10M loan agreement with the Public Works Board for the Zone 3 Reservoir Storage Tank project. MOTION: Mayor Pro Tem Barajas moved to approve the Consent Agenda as read. Mr. Milne seconded. Motion carried by unanimous Roll Call vote. VISITORS - OTHER THAN AGENDA ITEMS Mr. Leo Morales, downtown Pasco business owner, expressed concern about Code Enforcement staff and asked that staff be more helpful with businesses relating to building code corrections. Mr. Stephen Bauman, Franklin County resident and business owner, asked why Councilmembers were not attending the Council meetings in - person. He also asked for a report on the AskPasco app. Lastly, he commented on proposed Pasco Municipal Code amendments resented at the October 11, 2021, Council Workshop and advocated that property owners should have a say on how they develop their property citing a Page 2 of 5Page 8 of 217 guest parking spot issue he encountered when developing property recently. Grace Kitchen Executive Director Amanda Lorraine provided a brief overview of the mission and volunteer partners of Grace Kitchen. She then commented on the Code Enforcement process and the need to update the Grace Kitchen building with fire suppression equipment in order to expand their programs. Mayor Martinez asked that staff meet with Ms. Lorraine regarding her situation and Mr. Zabell stated that staff will set up a meeting with Ms. Loraine within a week. Mr. Carl Holder, Pasco resident and downtown Pasco business owner, expressed support for Grace Kitchen. Mr. Devin Lorraine, co-founder of Grace Kitchen, commented on the development of Grace Kitchen and expressed concern about working with Code Enforcement staff. Mr. Bauman, Franklin County resident and business owner, suggested that City staff provide a presentation regarding the code requirements for fire suppression in buildings, specifically the Grace Kitchen building to Council. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Mr. Maloney reported on the 2021 Pasco Taco Crawl and announced that over 8,000 tacos were consumed. Ms. Roach commented on the Tri-Cities Regional Public Facilities District Board meeting she attended recently along with Councilmember Maloney and Mayor Martinez. Mayor Martinez stated that the 2021 Virtual State of the Cities was scheduled for Wednesday, October 20, 2021. He also thanked Communications Program Manager Funfar for filming the Mayor's Address regarding the state of the City of Pasco. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Resolution - Surplus of City Property on Road 40 East (Parcel No.112-540-019) Mr. Ratkai provided a brief report on the proposed surplus of property located along Road 40 East. Page 3 of 5Page 9 of 217 MOTION: Mayor Pro Tem Barajas moved to approve Resolution No. 4104, approving the surplus of certain real property on Road 40 East, and further, authorize the City Manager to sell the property through realtor listing for a minimum price determined through market analysis. Mr. Serrano seconded. Motion carried unanimously. Resolution - Sale of Property on Road 40 East (Parcel No. 112-540- 019) Mr. Ratkai provided a brief report on the proposed sale of property located along Road 40 East. MOTION: Mayor Pro Tem Barajas moved to approve Resolution No. 4105, approving the sale of certain real property on Road 40 East. Mr. Milne seconded. Motion carried unanimously. MISCELLANEOUS DISCUSSION Mr. Zabell reported on the upcoming Spokane Teachers Credit Union (STCU) belated grand opening ribbon cutting event scheduled for October 27, 2021. Mr. Zabell asked Finance Director Sigdel to provide Council a brief report on the City's AskPasco app. Ms. Sigdel expressed appreciation to those individuals that are using the AskPasco app and she noted that the app has an "anonymous" option, which is located on the front page of the app. Mr. Zabell stated that if a person enters their concern or request into the AskPasco app anonymously, then staff will not be able to provide a response back to that individual as to the progress and final resolution of the issue. Mr. Zabell also commented on the "Visitors - Other Than Agenda Items" section of the meeting noting the procedure and purpose of it was to provide an opportunity for the public to speak to Council about items and issues. He reminded everyone that it is not a venue for public debate or for the public to ask questions and expect an immediate response. Mayor Pro Tem Barajas invited Council and staff to drop by Grace Kitchen on Thursdays for a free lunch and tour of the facility. Mr. Maloney asked Mr. Zabell to look into conducting an external review of the City's Code Enforcement policies and procedures. Mr. Zabell stated that efforts were currently in process reviewing the customer service aspects of Code Enforcement and he will respond to Council directly. Page 4 of 5Page 10 of 217 EXECUTIVE SESSION Council adjourned into Executive Session at 7:44 PM for 10 minutes to discuss the consideration of site selection or acquisition of real estate purchase or lease if likelihood that disclosure would increase price per RCW 42.30.110(1)(b) with the City Manager, Deputy City Manager and the City Attorney. Mayor Martinez called the meeting back to order at 7:53 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 7:53 PM. PASSED and APPROVED this ____ day of ________________, 20__. APPROVED: ATTEST: Saul Martinez, Mayor Debra Barham, City Clerk Page 5 of 5Page 11 of 217 MINUTES City Council Special Meeting 7:00 PM - Monday, October 25, 2021 City Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Saul Martinez, Mayor. ROLL CALL Councilmembers present: Ruben Alvarado, Blanche Barajas, Craig Maloney, Saul Martinez, David Milne, Zahra Roach, and Pete Serrano. Staff present: Adam Lincoln, Deputy City Manager; Colleen Chapin, Human Resources Director; Eric Ferguson, City Attorney; Bob Gear, Fire Chief; Zach Ratkai, Administrative & Community Services Director; Ken Roske, Police Chief; Richa Sigdel, Finance Director; Rick White, Community & Economic Development Director; Steve Worley, Public Works Director; and Debby Barham, City Clerk. The meeting was opened with the Pledge of Allegiance. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Resolution - Funds for ARPA Utility Assistance Program Ms. Sigdel explained the purpose of the request for an addtional $50,000 for the City's Utility Assistance Program utilizing American Rescue Plan Act (ARPA) funding. MOTION: Mayor Pro Tem Barajas moved to approve Resolution No. 4106, authorizing an amount not to exceed fifty thousand dollars of Department of Treasury funds from the American Rescue Plan Act. Mr. Serrano seconded. Motion carried unanimously. ADJOURNMENT There being no further business, the meeting was adjourned at 7:07 PM. Page 1 of 2Page 12 of 217 PASSED and APPROVED this __ day of ________________, 20__. APPROVED: ATTEST: Saul Martinez, Mayor Debra Barham, City Clerk Page 2 of 2Page 13 of 217 MINUTES City Council Workshop Meeting 7:10 PM - Monday, October 25, 2021 City Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:07 PM by Saul Martinez, Mayor. ROLL CALL Councilmembers present: Ruben Alvarado, Blanche Barajas, Craig Maloney, Saul Martinez, David Milne, Zahra Roach, and Pete Serrano. Staff present: Adam Lincoln, Deputy City Manager; Colleen Chapin, Human Resources Director; Eric Ferguson, City Attorney; Bob Gear, Fire Chief; Zach Ratkai, Administrative & Community Services Director; Ken Roske, Police Chief; Richa Sigdel, Finance Director; Rick White, Community & Economic Development Director; Steve Worley, Public Works Director; and Debby Barham, City Clerk. The meeting was opened with the Pledge of Allegiance. ITEMS FOR DISCUSSION Pasco Public Facilities District Board Update on Pending Ballot Issue Mr. Ratkai introduced the Pasco Public Facilities District Board (PPFD) members, which included President Mark Morrissette, Secretary/Treasurer Caroline Bowdish and Board members Spencer Jilek and Leonard Dietrich; Vice President Marie Gillespie was unable to attend the meeting. Mr. Ratkai provided an brief history of the PPFD and their analysis of determining if the construction of an aquatic facility within the City of Pasco was feasible. PPFD Board President Morrissette provided an update regarding a pending Ballot Issue for an aquatic facility in Pasco. He provided details Page 1 of 4Page 14 of 217 of the projected costs and revenue sources for the aquatic facility, as well as the anticipated on-going operations needs and job creation if the facility was opened. He stated that the PPFD Board is planning on placing the PPFD Aquatic Facility ballot issue on the February 3, 2022, Fran klin County Elections Ballot. Mr. Maloney commented on the proposed aquatic facility and expressed continued support for the project. Mr. Serrano asked if there was a possibility to construct Phase 2, which includes a competition pool, sooner than currently anticipated. Mr. Alvarado asked how the cost projections were developed and were they based on the recent years' sales tax revenue. Mayor Martinez expressed support for the aquatic facility. He asked if the City of Pasco's sales tax be two-tenths of one-percent higher than the Cities of Kennewick and Richland. 2022 Legislative Priorities Mr. Lincoln introduced Governmental Affairs Consultant Holly Cocci with Gordon Thomas Honeywell Governmental Affairs who provided an overview of the 2022 Washington State Legislative Session and the City of Pasco legislative priorities. Council, Ms. Cocci and staff briefly discussed the proposed legislative priorities. Mr. Serrano made a suggestion to amend the Public Safety and Land Use priority. He asked for clarity on the last item regarding Social Justice; he stated he was opposed to it as it was currently written. Mr. Maloney favored keeping the Mental Health legislative priority generalized and not imposing a possible tax. Mr. Milne and Mr. Serrano also favored keeping the Mental Health legislative priority generalized. Resolution - Sponsorship Agreement for Utility Box Wraps with STCU Ms. Pashon provided a brief overview of the proposed Sponsorship Agreement with the Spokane Teacher's Credit Union (STCU) for artwork wrapped around utility boxes within the City. Council and staff briefly discussed the proposed art program and the possibility expanding the program with other entities such as property developers. Page 2 of 4Page 15 of 217 Lewis Street Corridor Update by Mckay Sposito Mr. Worley introduced Senior Civil Engineer Jon Padvorac and Mackay Sposito's Senior Project Manager Jason Irving who provided an update on the Lewis Street Corridor project. Alma Villegas, the Public Engagement Lead for this project, provided an update on the results of the public's preferred improvements for the Lewis Street corridor, as well as their key concerns during the construction of the improvements to the corridor. Council and staff reviewed the proposed options for the Lewis Street corridor and there is a need to accommodate the business owners need for additional sidewalk area and an amended version of Option 2 appeared to be Council's preferred option. Mr. Lincoln suggested that with the feedback provided by Council, staff will review it and determine if there is another option that would be viable. Transportation System Master Plan Mr. White introduced DSK Associates Project Manager Carl Springer who provided an update of the City's Transportation System Master Plan. Intent for Annexation - Lamb 5 LLC (ANX 2021-007) Mr. White stated that Lamb 5 LLC, owner of property located at the northwest corner of Court Street and Road 68, is petitioning to be annexed into the City of Pasco. He stated that there may be additional property adjacent to this property that may be included in this annexation and a Public Meeting with the landowners will be scheduled for the first meeting in January 2022. Intent for Annexation - Thanksgiving Partnership (ANX 2021-002) Mr. White stated that Thanksgiving Partnership, owner of property located located east of North Capitol Avenue approximately 1,400 feet south of Foster Wells Road, is petitioning to be annexed into the City of Pasco. The Resolution setting the public meeting will come back for Council's approval at their next regular meeting. Resolutions - PWRF Embankment Repair CO No. 5 for Quantity Adjustments/Reconciliation & Project Closeout Mr. Worley provided a brief review of the Process Water Reuse Facility (PWRF) break noting that as the repair was underway, additional damage was uncovered. Public Works Construction Manager Kent McCue reported on needed project adjustments, reconciliation and project closeout. Page 3 of 4Page 16 of 217 City-Wide Phone System Upgrade Mr. Lincoln provided a brief report on the proposed City-wide phone system upgrade and if approved by Council, the phone transfers will begin in January 2022. Resolution - Street Name Revision: Madison Park Phase 7 Mr. White explained a street naming error was made when the final plat for Madison Park Phase 7 was recorded with Franklin County and the proposed resolution will correct that error and is needed for emergency agencies when responding to emergency calls within that subdivision. MISCELLANEOUS COUNCIL DISCUSSION Mr. Lincoln reminded Council that their next two meetings, scheduled for November 1 and November 8 will start at 6:00 PM. Mr. Ratkai announced the City's Annual Trunk or Treat is scheduled for Saturday, October 30, from 10:00 AM to 1:00 PM. Mayor Pro Tem Barajas announced the next Coffee with a Cop was scheduled for Wednesday, October 27. Mayor Martinez shared his condolences to Mr. Zabell and his family for the recent loss with their family. EXECUTIVE SESSION Council adjourned into Executive Session at 9:45 PM for 15 minutes to discuss with legal counsel about current or potential litigation, per RCW 42.30.110(1)(i) with the City Manager, Deputy City Manager and the City Attorney. Mayor Martinez called the meeting back to order at 10:03 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 10:03 PM. PASSED and APPROVED this __ day of ________________, 20__. APPROVED: ATTEST: Saul Martinez, Mayor Debra Barham, City Clerk Page 4 of 4Page 17 of 217 AGENDA REPORT FOR: City Council October 28, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Richa Sigdel, Finance Director Finance SUBJECT: Bills and Communications I. REFERENCE(S): Accounts Payable 11.01.21 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $5,211,215.38 ($2,574,291.51 in Check Nos. 244544-833303Nos. Transfer $1,771,557.40 in 244810; Electronic - 833348, 833359-833419, 833426-833514, 833521-833595, 833597, 833608- 833609, 833622-833630; $10,617.38 in Check Nos. 53773-53780; $854,749.09 in Electronic Transfer Nos. 30167317-30167843). III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 18 of 217 REPORTING PERIOD: November 1, 2021 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 244544-244810 53773-53780 Total Check Amount $2,574,291.51 $10,617.38 Total Checks 2,584,908.89$ Electronic Transfer Numbers 833303-833348 30167317-30167843 833359-833419 833426-833514 833521-833595 833597 833608-833609 833622-833630 Total EFT Amount $1,771,557.40 $854,749.09 $0.00 Total EFTs 2,626,306.49$ Grand Total 5,211,215.38$ Councilmember 1,044,586.18 510.33 0.00 0.00 33,946.15 0.00 657.82 45,077.58 22,321.59 3,689.13 21,299.48 493.76 181.97 0.00 2,750.54 0.00 0.00 8,994.83 0.00 0.00 2,484.42 0.00 HOTEL/MOTEL EXCISE TAX 12,361.96 0.00 545,542.37 1,399,827.65 14,886.60 0.00 10,993.53 0.00 0.00 POOLED INVESTMENT 0.00 0.00 3,698.43 2,036,911.06 GRAND TOTAL ALL FUNDS:5,211,215.38$ The City Council October 14 - October 27, 2021 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved STREET OVERLAY City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim. Dave Zabell, City Manager Darcy Buckley, Finance Manager We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 1st day of November, 2021 that the merchandise or services hereinafter specified have been received and are approved for payment: Councilmember SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET ARTERIAL STREET RIVERSHORE TRAIL & MARINA MAIN C.D. BLOCK GRANT HOME CONSORTIUM GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE CEMETERY ATHLETIC PROGRAMS GOLF COURSE SENIOR CENTER OPERATING MULTI-MODAL FACILITY SCHOOL IMPACT FEES EQUIPMENT RENTAL - OPERATING BUSINESS SPECIAL ASSESSMENT LODGING LITTER ABATEMENT REVOLVING ABATEMENT TRAC DEVELOPMENT & OPERATING PARKS ECONOMIC DEVELOPMENT STADIUM/CONVENTION CENTER LID GENERAL CAP PROJECT CONSTRUCTION UTILITY, WATER/SEWER EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT BUSINESS MEDICAL/DENTAL INSURANCE OLD FIRE OPEB FLEX PAYROLL CLEARING Page 19 of 217 AGENDA REPORT FOR: City Council October 26, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Steve Worley, Director Public Works SUBJECT: Resolutions - Process Water Reuse Facility (PWRF) Embankment Repair Change Order No. 5 for Quantity Adjustments/Reconciliation & Project Closeout I. REFERENCE(S): Resolutions Change Order II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. ______, authorizing the City Manager to execute a fifth Change Order to the construction Contract with Apollo, Inc. for the Process Water Reuse Facility Embankment Repair project. MOTION: I move to approve Resolution No. ______, accepting work performed by Apollo, Inc., under contract for Project No. 20100, PWRF Embankment Repair. III. FISCAL IMPACT: The total Construction costs for this project is outlined below. Original Construction Contract Amount $ 627,961.14 Change Order No. 1: $ 22,300.30 Change Order No. 2: $ 4,489.83 Change Order No. 3: $ 13,144.49 Change Order No. 4: $ 143,633.96 Change Order No. 5: (proposed with sales tax included) $ 134,965.02 New Construction Contract Total: $ 946,494.74 Page 20 of 217 The total project cost, including design engineering and staff costs, is currently estimated at $1,250,000. Final cost will be determined after final project closeout. As this was an emergency repair, the cost of this project was not included in the approved 2021-2022 Budget. Therefore, a budget amendment is needed to account for this project. The Economic Development fund is the proposed source for funding this repair project. Staff is currently working with the City's insurance company to cover the se repair costs. Any funds received by the insurance company will be paid back to the Economic Development fund. IV. HISTORY AND FACTS BRIEF: On November 16, 2020, Council approved a contract with Apollo, Inc. to repair an earthen wall between two process water storage cells at the City Process Water Treatment Plant (PWRF). The failure of the wall was attributable to erosion around an overflow pipe from one cell to another that had been recently installed by City crews. This was an emergency project that required permitting from Ecology and necessitated immediate action on the part of the contractor and consulting engineers, with some aspects of the repair and or permitting requirements, having to be identified as the project proceeded. As a result of the on-the-go design, permitting and repair, several change orders were required through the course of the repair project. Listed below is a sum mary of the previous Change Orders: Change Order No. 1: Revised the pipe trench from the standard pipe trench to a reinforced concrete pipe encasement trench as required by Ecology adding a concrete pipe encasement. Change Order No. 2: Installation of an off-gassing system under the new liner as required by Ecology. Change Order No. 3: Upgrade the overflow pipe between the 115 to the 35 -million-gallon reservoirs bringing it up to current Ecology specifications. Change Order No. 4: Remove and replace PVC liner bottom in the 8MG pond: it was damaged beyond repair while performing the emergency embankment repair. Change Order No. 5: Payment for quantity overruns. Two bid items were underestimated: Page 21 of 217 • Embankment/Structural fill including Haul - $21,489.61 • Textured 60 mil. HDPE liner - $103,478.00 These quantities were originally estimated by the Engineer. It was discovered during construction that addition structural fill was needed to replace the contaminated soil. Also, additional liner needed to be replaced due originally than larger areas being the structural additional to fill estimated. PWRF Embankment Repair Project Acceptance The original contract was awarded by Council to Apollo, Inc. of Pasco, WA on December 3, 2020, in the amount of $631,449.81. The City Manager executed the contract with a corrected amount of $627,961.14. The correction was due to an incorrect tax percentage applied to the total bid. The project is complete and constructed per specifications. Final construction costs totaled $946,494.74, which includes change orders in the amount of $318,533.60. Formal acceptance of public works projects are required by State law and start the 45-day period within which an outside vendor, supplier or laborer would have an opportunity to file a claim against this project pursuant to RCW 60.28.011 (2). Upon completion of the 45 day lien filing period, retainage being held by the City may be released upon receipts of the following: • An affidavit of no liens • A release from the Department of Revenue that all taxes have been paid • A release from any claims from the Department of Labor and Industries, pursuant to RCW 60.28.051 V. DISCUSSION: Staff recommends approval of Change Order No. 5 to reconcile the contract with Apollo, Inc. for the PWRF Embankment Repair project in the amount of $134,965.02 Upon Change Order approval, Staff also recommends the City Council's acceptance of the project as constructed by Apollo, Inc. This item was discussed at Council’s October 25, 2021 workshop meeting. Page 22 of 217 Resolution – Change Order No. 5 with Apollo, Inc. - 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE A FIFTH CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH APOLLO, INC. FOR THE PROCESS WATER REUSE FACILITY (PWRF) EMBANKMENT REPAIR PROJECT. WHEREAS, City staff on June 27, 2020, discovered a failure of the internal embankment between the 8MG pond and the 35MG pond at the City’s PWRF; and WHEREAS, the City and Apollo, Inc. entered into a Construction Contract on December 3, 2020, pursuant to RCW 39.04.280(1)(c), to provide repair work for the PWRF Embankment Repair Project; and WHEREAS, the City and Apollo, Inc. has executed four Change Orders to the Construction Contract to accommodate regulatory requirements and changed conditions; and WHEREAS, Change Orders Nos. 1 through 3 to the contract were authorized under the authority provided to the City Manager and Public Works Director; and WHEREAS, Change Order No. 4 in the amount of $143,633.96 (including Sales Tax) required Council approval and received approval on April 19, 2021; and WHEREAS, Change Order No. 5 in the amount of $134,965.02 (including Sales Tax) exceeds the City Manager’s authority and thus requires Council approval; and WHEREAS, the additional expenditure associated with Change Order No. 5 is reasonable and after careful staff review will fulfill the intent of the original contract entered into on December 3, 2020 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. That Change Order No. 5 is to account for quantity overages for the overran bid items (Embankment/Structural fill which included Haul and Textured 60 mil. HDPE liner). Section 2. The City Manager, for the City of Pasco, is hereby authorized to execute Change Order No. Five, a copy of which is attached hereto, and incorporated hereto by this reference, as Exhibit A. Page 23 of 217 Resolution – Change Order No. 5 with Apollo, Inc. - 2 PASSED by the City Council of the City of Pasco, Washington this ___ day of _______________, 2021. Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 24 of 217 Project No:20100 Project Title:Embankment Repair- PWRF Contractor: Description of Change:Reconciliation Change Order Detail as Appropriate:For reconciliation to account for quantity overages. Contract Bid Amount:581,445.50$ SALES TAX @ 8.0%:46,515.64$ Total: 627,961.14$ Subtotal 169,970.91$ Subtotal 124,967.61$ Sales tax @ 8.0% 13,597.67$ Sales tax @ 8.0% 9,997.41$ Total 183,568.58$ Total 134,965.02$ Total Change Orders To Date: 318,533.60$ New Contract Amount: YES NO CONTRACTOR Date Date CONST. MANAGER Date CIP MANAGER Date Date PROJECT MANAGER APPROVED:APPROVED: CITY MANAGER Revised Total Contract Time…………………………………………….60 It is mutually agreed by both parties that this Change Order fully describes the change(s) that is (are) being made and that the compensation for this Change Order is full and complete and is the only compensation due or owing for this Change Order. Further, it is mutually agreed that this document will supplement the present Contract Documents and that the provisions of the previously executed Contract Documents shall apply to this Change Order. AGREED TO AND ACCEPTED:APPROVED: 946,494.74$ IS CONTRACT TIME AFFECTED BY THIS CHANGE ORDER Contract Time Prior to this Change Order…………………………… 60 Modification to Contract time by this Change Order……………….. 0 CITY OF PASCO PUBLIC WORKS DEPARTMENT CONTRACT CHANGE ORDER NO. 5 Apollo, Inc. PREVIOUS CHANGE ORDER CURRENT CHANGE ORDER EXHIBIT A Page 25 of 217 Page 26 of 217 Page 27 of 217 Resolution – PWRF Embankment Repair Project Closeout - 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY APOLLO, INC., UNDER CONTRACT FOR PROJECT NO. 20100, PWRF EMBANKMENT REPAIR. WHEREAS, the work performed by Apollo, Inc., under contract for the PWRF Embankment Repair project, has been examined by City of Pasco staff and has been found to be in apparent compliance with the applicable project specifications and drawings; and WHEREAS, it is the City Staff’s recommendation that the City of Pasco formally accept the contractor's work and the project as complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council concurs with the Staff’s recommendation and thereby accepts the work performed by Apollo, Inc., under contract for the PWRF Embankment Repair project, as being completed in apparent compliance with the project specifications and drawings; and Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance; and Be It Further Resolved, that the final payment of retainage being withheld pursuant to applicable laws, regulations and administrative determination shall be released upon satisfaction of same and verification thereof by the Public Works Director and Finance Director. 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 Attorneys Page 28 of 217 AGENDA REPORT FOR: City Council October 26, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Rick White, Director Community & Economic Development SUBJECT: Resolution Setting the Time and Date to Consider the Thanksgiving Partnership Annexation (ANX 2021-002) I. REFERENCE(S): Proposed Resolution Overview Map Vicinity Map Notice of Intent to Commence Annexation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. ______, setting 7:00 PM, November 15, 2021, as the time and date for a public meeting to consider the Thanksgiving Partnership notice of intent to commence annexation of property located east of North Capitol Avenue approximately 1,400 feet south of Foster Wells Road. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The owners of property located east of North Capitol Avenue approximately 1,400 feet south of Foster Wells Road have submitted a Notice of Intent to Commence Annexation. The Notice of Intent has been reviewed by staff and has been determined to contain sufficient signatures to initiate the annexation process. Notices of Intent are required to contain the signatures of property owners representing at least 10 percent of the assessed value of an area proposed for annexation. In this case, the Notice of Intent contains the signatures of owners Page 29 of 217 representing 100 percent of the assessed value within the proposed annexation area. 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 November 15, 2021. Following Council review of the proposed annexation and passage of a resolution generally accepting the boundary, staff will present the proposed annexation zoning to the Hearing Examiner for a recommendation on the zoning and prepare the annexation petition for the proponent to circulate within the annexation area. Once the petition is returned, it will be forwarded to the County Assessor for certification. Following that certification - a date will be set for a public hearing for Council to formally consider and decide upon the annexation request. Page 30 of 217 Resolution: MF# ANX 2021-002 - 1 RESOLUTION NO. _____ A RESOLUTION SETTING 7:00 PM, NOVEMBER 15, 2021 AS THE TIME AND DATE FOR A MEETING TO CONSIDER THE THANKSGIVING PARTNERSHIP NOTICE OF INTENT TO COMMENCE ANNEXATION OF PROPERTY LOCATED EAST OF NORTH CAPITOL AVENUE APPROXIMATELY 1,400 FEET SOUTH OF FOSTER WELLS ROAD. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may annex lands; and WHEREAS, pursuant to RCW 35A.14.120, prior to the City circulating a petition to annex, notice of intent to commence annexation must be made to the Pasco City Council by the owners of at least ten (10) percent of the assessed value of the property to be annexed; and WHEREAS, the owners of property in a portion of South ½ of the Northeast ¼ of Section 8, Township 9 North, Range 30 East, W.M., located east of North Capitol Avenue approximately 1400 feet south of Foster Wells Road, have filed a Notice of Intent to Commence Annexation to the City of Pasco; and WHEREAS, pursuant to RCW 35A.14.120 the Notice of Intent to Commence Annexation contains the signatures of property owners representing at least ten (10) percent of the assessed value of an area proposed for annexation; and WHEREAS, upon receipt of a Notice of Intent to Commence Annexation the Council is required by RCW 35A.14.120 to set a date to hold a 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That a meeting to consider a Notice of Intent to Commence Annexation of property located east of North Capitol Avenue approximately 1400 feet south of Foster Wells Road (Franklin County Assessor’s Parcel No. 113130415), as described in Exhibit A and depicted in Exhibit B, attached hereto, will be held before the City Council of the City of Pasco, in the Council Chambers, at 525 North Third Avenue, Pasco, Washington, at the hour of 7:00 p.m., November 15, 2021. Page 31 of 217 Resolution: MF# ANX 2021-002 - 2 PASSED by the City Council of the City of Pasco, Washington this _____ day of November, 2021. Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 32 of 217 EXHIBIT "A" Legal Description ANX 2021-002 -Thanksgiving Partnership The South½ of the Northeast¼ of Section 8, Township 9 North, Range 30 East, W.M., together with rights­ of-way, and access and utility easements as recorded in the Records of Franklin County, State of Washington; comprising approximately 82.95 Acres. Page 33 of 217 4TH US 395US 395I N D U S T R I A L C APIT O L K A RTCHNER R AI L ROADFOSTER WELLS KARTCHN ER T OUS395KARTCHN E R TOUS 395CITY LIMITSCITY LIMITS0 1,000 2,000 3,000 4,000500 Feet "Exhibit B" Item: Thanksgiving Partnership Annexation Applicant: Thanksgiving Partnership LLC File #: ANX 2021-002/ZD 2021-002 Annexation AreaPage 34 of 217 4TH US 395US 395I N D U S T R I A L C APIT O L K A RTCHNER R AI L ROADFOSTER WELLS KARTCHN ER T OUS395KARTCHN E R TOUS 395CITY LIMITSCITY LIMITSBenton 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: Thanksgiving Partnership Annexation Applicant: Thanksgiving Partnership LLC File #: ANX 2021-002/ZD 2021-002 Page 35 of 217 E FOSTER WELLS RD N CAPITOL AVECAPITOL AVEUS 395 SUS 395 NCITY LIMITS CITY LIMITS 0 570 1,100 1,700 2,300290 Feet 0 570 1,100 1,700 2,300290 Feet Vicinity Map Item: Thanksgiving Partnership Annexation Applicant: Thanksgiving Partnership LLC File #: ANX 2021-002/ZD 2021-002 Page 36 of 217 THANKSGIVING LIMITED PARTNERSHIP P.O. BOX 3027 September 29, 2021 Jeff Adams City of Pasco PASCO WA 99302-3027 (509)545-3355 Community Development Department P.O. Box 293 I 525 North 3 rd Avenue Pasco WA 99301 Re: Notice of Intention to Commence Annexation Procedures and Zoning Designation Dear Jeff: Please find enclosed the following: 1)Notice of Intention to Commence Annexation Procedures dated September 29, 2021,together with attached Exhibit "A" -Subject Property Legal Description and Exhibit "B"­Subject Property Map2)Affidavit of Signature for Annexation Notice of Intent and Application dated September29,2021 It is Applicant's intention to annex subject property under the City of Pasco's Light Industrial {1-1) Zoning designation which is in keeping with the zoning proposed in the most recent UGB plan. We understand that the Port of Pasco has applied to annex its property to the northwest of Subject Property. In the interest of time and efficiency, we would hope that our application could be considered by Council along with the Port's application. Thank you for your assistance in helping us prepare this application. ���� � :\� Thanksgiving Limited Partnehl Robert M. Tippett General Partner pc: Bill Davis, Leavy Schultz and Davis Charles Laird, Tippett Company Page 37 of 217 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 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 assum ption 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 38 of 217 EXHIBIT "A" Legal Description ANX 2021-002 -Thanksgiving Partnership The South½ of the Northeast¼ of Section 8, Township 9 North, Range 30 East, W.M., together with rights­ of-way, and access and utility easements as recorded in the Records of Franklin County, State of Washington; comprising approximately 82.95 Acres. Page 39 of 217 Item: Thanksgiving Partnership Annexation "Exhibit B" Applicant: Thanksgiving Partnership LLC File#: ANX 2021-002 � � � 1-,-j (!) ----,-- � iA M' r.n =>: N W+E s :------.-�--�s;rav-�M���-----+--__J_-� 5001,000 2,000 -- Feet Page 40 of 217 Affidavit of Signature for Annexation Notice of Intent and Petition Under the penalty of perjury, I declare under oath, that l,am authorized to sign deeds and encumbrances on behalf of -rV\. o..""'6-,::� 1. u· .. ..,_;? Ll�d:eJ fan.�£.�and I am further authorized to sign other documents including Notices o Intent and Petitions. �e-()�\M.,bor �'7E ao.)) Date State of Washington County of tYO..'v\.\l\ �'1 ): ss. ) I certify that I know or have satisfactory evidence that l,6,fg:r w\ 'T1P/f-II is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, on oath stated that (he/she) was authorized to -oil&:�b in��rr� and acknowledged it as the t;.€;� f PJ2!f,se(/.__ of fl+/2..: t � to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. �\\\\\\IIIIIJIIJ� ��t-:��-�§.�fa­��-;-•�\1110,, �--=.if� § • ., �-. � ;::: :'(.) o.\QTA2111�\ � :::: . '°' rir • s-. -. -a:-•-:e- • b_,,r_ • -'el�\�·.i;/ IE � ··.. 'V.... � � •• \, .• §� n.:.:"•=�� � �:,,.,r-w�,.: � �,,,111,nn\\\\\� NOTARY UC in and for the State of Washington Residing at: �P_lt�S�(_O ________ _ My Commission Expires: Page 41 of 217 1.Please print your name in addition to signing. PRINT NAME SIGNATURE <g e,':,el>c:-\:: -w. , '1 fle:½ �-v. J!�A,. ADDRESS DATE Page 42 of 217 Resolution: MF# ANX 2021-002 Thanksgiving Partnership Annexation- 1 RESOLUTION NO. _____ A RESOLUTION SETTING 7:00 PM, NOVEMBER 1, 2021 AS THE TIME AND DATE FOR A PUBLIC MEETING TO CONSIDER THE THANKSGIVING PARTNERSHIP NOTICE OF INTENT TO COMMENCE ANNEXATION OF PROPERTY LOCATED EAST OF NORTH CAPITOL AVENUE APPROXIMATELY 1400 FEET SOUTH OF FOSTER WELLS ROAD. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may annex lands; and WHEREAS, the owners of property in a portion of South ½ of the Northeast ¼ of Section 8, Township 9 North, Range 30 East, W.M., located east of North Capitol Avenue approximately 1400 feet south of Foster Wells Road, have filed a Notice of Intent to Commence Annexation to the City of Pasco; and WHEREAS, the Notice of Intent to Commence Annexation contains sufficient signatures to initiate the annexation process. Notices of Intent to Commence Annexation 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, and WHEREAS, 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That a public meeting to consider a Notice of Intent to Commence Annexation of property located east of North Capitol Avenue approximately 1400 feet south of Foster Wells Road (Franklin County Assessor’s Parcel #113130415), as described in Exhibit No. 1 and depicted in Exhibit No. 2, attached hereto, will be held before the City Council of the City of Pasco, in the Council Chambers, at 525 N Third Avenue, Pasco, Washington, at the hour of 7:00 pm, November 1, 2021 Page 43 of 217 Resolution: MF# ANX 2021-002 Thanksgiving Partnership Annexation- 2 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 44 of 217 AGENDA REPORT FOR: City Council October 26, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Angela Pashon, Senior Management Analyst Executive SUBJECT: Resolution - Sponsorship Agreement for Utility Box Wraps with Spokane Teachers Credit Union (STCU) I. REFERENCE(S): Resolution Sponsorship Agreement Signalized Intersections Map Ordinance No. 4472 - Creation of an Arts and Culture Commission II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. _____, authorizing the City Manager to execute a sponsorship agreement with Spokane Teachers Credit Union for art wraps of utility boxes. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: The City of Pasco Arts and Culture Commission (PACC), established in 2019, advises the City Council on matters relating to public art and culture. The PACC Commissioners were appointed in March of 2020 at the onset of the COVID -19 pandemic and restrictions. Since that time the PACC has been regularly meeting on a virtual basis, first developing an ambitious work plan and then on efforts to implement that plan. Over the past year the PACC has developed proclamations and cultural education for; Black History Month, Pacific Islander and Asian American Page 45 of 217 Heritage Month, and Hispanic Heritage Month as well as work on multiple art initiatives. Of issue this evening, Spokane Teachers Credit Union (STCU) has proposed a utility box wrap program in Pasco that would incorporate art into public infrastructure by means of a vinyl wrapping of utility/traffic signal boxes. Utility box wraps have been shown to be a deterrent for graffiti or other damage while bringing life to ordinary equipment and the surrounding area. Locally, STCU has entered into sponsorship agreements for utility box wraps with the Cities of Kennewick and Richland, both have established art commissions. STCU had proposed a program in Pasco earlier and made a presentation to the City Council in August of 2019. Council discussion at that time was positive however, Council was at the time considering establishment of the PACC and deemed it appropriate to complete that process allowing for the PACC to advise on the process and selection once established. V. DISCUSSION: Over the past several months the PACC has been discussing with STCU the utility box wrap program and working through the mechanics of the proposal. Through a sponsorship agreement, STCU would provide funding for the fabrication, installation, and artist stipend for each utility box selected. The City of Pasco would be responsible for the selection, review and inspection of materials, installation, and for providing cost estimates prior to installation to STCU; STCU will review final selections to ensure when applied, concept is not altered, and either accept or deny the cost estimates provided by the City then implement the improvement on those selected. If a utility box application is damaged STCU will be notified and may repair, replace, or discontinue sponsorship of the individual box wrap. PACC anticipates a call for art to be conducted annually with four utility box locations to be completed each year. Staff will coordinate on utility box locations to identify potential capital improvement projects underway or planned in the near future (i.e. traffic signal upgrades, road improvements, etc.) and coordinate as necessary with utility box owners (PUD, telephone, City). The PACC views the STCU proposal favorably and is of the opinion the program will serve to infuse much needed art into some o f the City’s streetscapes. Staff has reviewed the proposal from a maintenance and speech standpoint and is Page 46 of 217 convinced the City’s interests are protected. By direction of Council, this item was placed on the November 1, 2021 agenda for approval. Subsequent to Council approval, PACC will conduct a call for art for the utility box wrap program. Staff presented this request at the October 25.2021 Council Workshop. Page 47 of 217 Resolution – STCU Art Wrap Sponsorship Agreement - 1 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A SPONSORSHIP AGREEMENT WITH SPOKANE TEACHERS CREDIT UNION FOR ART WRAPS OF UTILITY BOXES. WHEREAS, the City of Pasco, seeks to deter graffiti and other similar damage to City infrastructure; and WHEREAS, the City of Pasco City Council, has created the Arts and Culture Commission to identify artistic means to beautify the City while seeking ways to lower City costs associated with damage mitigation; and WHEREAS, the City of Pasco and City Council, has made and seek to make additional streetscape and public art improvements; and WHEREAS, the addition and maintenance of public art in public places are in the best interest of the public and in meeting the objective to deter damage to public infrastructure; and WHEREAS, the City of Pasco, has made available through its Arts and Culture Commission the ability for businesses and not-for-profit organizations to sponsor the artistic wrap of utility boxes; and 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 a Sponsorship Agreement with the Spokane Teachers Credit Union, 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 November, 2021. ________________________________ Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 48 of 217 Page 1 of 3 UTILITY BOX ART WRAP SPONSOR AND CITY OF PASCO SPONSORSHIP AGREEMENT This Sponsorship Agreement made and entered into by and between the City of Pasco, hereinafter referred to as “City,” a political subdivision of the State of Washington, and Spokane Teachers Credit Union (STCU), hereinafter referred to as “Host.” WITNESSETH: WHEREAS, the City of Pasco, seeks to deter graffiti and other similar damage to City infrastructure; and WHEREAS, the City of Pasco City Council, has created the Arts and Culture Commission to identify artistic means to beautify the City while seeking ways to lower City costs associated with damage mitigation; and WHEREAS, the City of Pasco and City Council, has made and seek to make additional streetscape and public art improvements; and WHEREAS, the addition and maintenance of public art in public places are in the best interest of the public and in meeting the objective to deter damage to public infrastructure; and WHEREAS, the City of Pasco, has made available through its Arts and Culture Commission the ability for businesses and not-for-profit organizations to sponsor the artistic wrap of utility boxes; and IN CONSIDERATION of the covenants and agreements herein contained and the terms and conditions thereof, the parties agree as follows: SECTION 1. TERMS AND CONDITIONS 1.1 Term. The term of this Agreement shall be perpetual, commencing on the date of execution by both parties. The termination of this Agreement shall be dictated by Section 2 below. 1.2 Performance. Timely and full performance of all terms and conditions of this Agreement is made the essence hereof. In the event either party fails to keep or perform any terms or conditions required herein to be kept or performed by it, the aggrieved party shall have the right to promptly notify the other party of such failure and request that the party take immediate action to correct such failure. Amendment. This Agreement shall be amended in writing if and when any alteration to the improvements is made by the City or Host as mutually agreed by the parties. SECTION 2. FIRST RIGHT OF CONTINUATION OR REFUSAL Page 49 of 217 Page 2 of 3 2.1 Termination Event. The sponsorship contemplated by this agreement is considered the first wrap of all Utility Boxes identified in Exhibit A. Damage necessitating the replacement of the Utility Box as part of this original agreement shall be considered a terminating event for the purposes of the sponsorship of that particular Utility Box. If wrap is damaged within the display time period, the City will contact Host with option to repair or replace. Host has 30 days from notification to opt to fund repair of the damage. If the City owned property needs to be repaired or replaced—in part or in whole—while the artwork is in place, there is no obligation on the part of the City to replace, repair, or reinstall the artwork. 2.2 First Right of Continuation. The Host shall have the first right to continue their sponsorship of a Utility Box damaged or removed by rendering the cost to replace the artistic wrap under the terms of this agreement. 2.3 First Right of Refusal. The Host shall have the first right to discontinue their sponsorship of a Utility Box, which will automatically permit the City to offer the sponsorship of the Utility Box to another Host. The Host is responsible for removing the wrap(s) for the box which the Host has discontinued sponsorship. 2.4 City’s Right to Terminate. The City may, at its sole option, terminate the agreement for any reason upon providing 60 days’ notice to STCU. If the City terminates the agreement in this manner, it shall be responsible for the cost of removing the wrap(s) from the box. SECTION 3. RESPONSIBILITIES OF THE CITY 3.1 Selection. The City, in conjunction with the Arts and Culture Commission, shall work to install the art mutually approved and selected by the City Council and Host. All approved artwork shall enhance its setting and help create a sense of place. The artwork must be suitable for display to a diverse audience, including children. Artwork shall not contain profanity, obscenity or explicit sexual imagery, nudity, graphic depictions of violence, or create a hostile work environment. Artwork cannot display religious or political messages. Providing space for the artwork does not in any way obligate the City to assume any liability or risk for the displayed materials nor does it constitute an endorsement of the beliefs or viewpoints of the art. 3.2 Review and Inspection. The City’s Public Works Director or designee shall provide a list of approved materials and method of attachment and/or review and approve the material and method of attachment suggested by the Host. The Public Works Director or their designee shall inspect the wrap application during installation. 3.3 Installation. The City shall contract with a professional firm to have the utility wraps installed on selected Utility Boxes. 3.4 Sponsorship Bid. The City shall provide the Host with the estimated cost to install the wraps prior to proceeding with installation, and seek their written approval to proceed. 3.5 Right of Removal. The City, through its Public Works Department, shall have the sole discretion to remove any cabinet wrap that is damaged, vandalized, including non-removable or repeated graffiti, or in any way hinders the operation of maintenance of the Utility Box. Page 50 of 217 Page 3 of 3 SECTION 4. RESPONSIBILITIES OF THE HOST 4.1 Sponsorship Bid. The Host shall either accept or reject the estimated cost to install the wraps by written correspondence. Acceptance of the estimated cost is considered by this Agreement the City’s right to proceed and invoice the Host for the complete installation of the artistic wrap. SECTION 5. GENERAL RESPONSIBILITIES 5.1 Communication. Any notice or official communication between one party and the other must be written and mailed, postage pre-paid, or sent by electronic mail to: For City of Pasco: Dave Zabel City Manager 525 N 3rd Avenue Pasco, WA 99526 Phone: 509.555.3446 Email: zabeld@pasco-wa.gov Initial by City of Pasco agreeing to communication by Electronic Mail: ______ For STCU: Traci McGlathery Director of Community Relations 1620 N Signal Drive Liberty Lake, WA, 99019 Phone: 509.628.1357 Email: tracim@stcu.org Initial by Host agreeing to communication by Electronic Mail: ______ DATED this ______ day of ________________, 2021. CITY OF PASCO ________________________________________ Dave Zabell, City Manager Attest: Approved as to form: _________________________________ ________________________________________ Debra Barham, City Clerk Kerr Ferguson Law, PPLC, City Attorney STCU ________________________________________ Page 51 of 217 Page 4 of 3 Traci McGlathery, Director of Community Relations Page 52 of 217 BURDEN BLVD & ROAD 68BURDEN BLVD & ROAD 68 CHAPEL HILL BLVD & ROAD 68 CHAPEL HILL BLVD & ROAD 68 E A ST & S OREGON AVE E A ST & S OREGON AVE N 10TH AVE & W SYLVESTER STN 10TH AVE & W SYLVESTER ST N 10TH AVE & W CLARK STN 10TH AVE & W CLARK ST N 10TH AVE & W COURT STN 10TH AVE & W COURT ST N 14TH AVE & W COURT STN 14TH AVE & W COURT ST N 14TH AVE & W SYLVESTER STN 14TH AVE & W SYLVESTER ST N 20TH AVE & SUN WILLOWS BLVD N 20TH AVE & SUN WILLOWS BLVD N 20TH AVE & W ARGENT RDN 20TH AVE & W ARGENT RD N 20TH AVE & W COURT ST N 20TH AVE & W COURT ST N 20TH AVE & W HENRY STN 20TH AVE & W HENRY ST N 20TH AVE & W PEARL STN 20TH AVE & W PEARL ST N 20TH AVE & W SYLVESTER STN 20TH AVE & W SYLVESTER ST N 22ND AVE & W COURT STN 22ND AVE & W COURT ST N 26TH AVE & W COURT ST N 26TH AVE & W COURT ST N 28TH AVE & W SYLVESTER STN 28TH AVE & W SYLVESTER ST N 4TH AVE & W COURT STN 4TH AVE & W COURT ST N 4TH AVE & W CLARK ST N 4TH AVE & W CLARK ST N 4TH AVE & W SYLVESTER STN 4TH AVE & W SYLVESTER ST N 5TH AVE & W COURT ST N 5TH AVE & W COURT ST N 5TH AVE & W SYLVESTER STN 5TH AVE & W SYLVESTER ST ROAD 34 & W COURT STROAD 34 & W COURT ST ROAD 36 & W COURT STROAD 36 & W COURT ST ROAD 40 & W COURT STROAD 40 & W COURT ST ROAD 68 & SANDIFUR PKWYROAD 68 & SANDIFUR PKWY ROAD 68 & W ARGENT RDROAD 68 & W ARGENT RD ROAD 68 & WRIGLEY DRROAD 68 & WRIGLEY DR ROAD 80 & W ARGENT RDROAD 80 & W ARGENT RD ROAD 84 & W ARGENT RDROAD 84 & W ARGENT RD S 10TH AVE & W A STS 10TH AVE & W A ST S 10TH AVE & W AINSWORTH AVES 10TH AVE & W AINSWORTH AVE S 4TH AVE & W A STS 4TH AVE & W A ST VARNEY LN & W ARGENT RDVARNEY LN & W ARGENT RD AUTOPLEX WAY & ROAD 32 & W COURT ST AUTOPLEX WAY & ROAD 32 & W COURT ST BURDEN BLVD & CONVENTION DR & CONVENTION PL BURDEN BLVD & CONVENTION DR & CONVENTION PL E LEWIS ST & N OREGON AVE & S OREGON AVE E LEWIS ST & N OREGON AVE & S OREGON AVE E LEWIS ST & N WEHE AVE & S WEHE AVE E LEWIS ST & N WEHE AVE & S WEHE AVE S 7TH AVE & N 7TH AVE & W LEWIS ST S 7TH AVE & N 7TH AVE & W LEWIS ST N 10TH AVE & S 10TH AVE & W LEWIS ST N 10TH AVE & S 10TH AVE & W LEWIS ST N 20TH AVE & S 20TH AVE & W LEWIS ST N 20TH AVE & S 20TH AVE & W LEWIS ST N 28TH AVE & S 28TH AVE & W LEWIS ST N 28TH AVE & S 28TH AVE & W LEWIS ST N 3RD AVE & S 3RD AVE & W LEWIS ST N 3RD AVE & S 3RD AVE & W LEWIS ST N 4TH AVE & S 4TH AVE & W LEWIS ST N 4TH AVE & S 4TH AVE & W LEWIS ST N 5TH AVE & S 5TH AVE & W LEWIS ST N 5TH AVE & S 5TH AVE & W LEWIS ST N 20TH AVE & W MARIE STN 20TH AVE & W MARIE ST N 20TH AVEN 20TH AVE MIDLAND LN & SANDIFUR PKWYMIDLAND LN & SANDIFUR PKWY BROADMOOR BLVD & HARRIS RD BROADMOOR BLVD & HARRIS RD BROADMOOR BLVD & CHAPEL HILL BLVD BROADMOOR BLVD & CHAPEL HILL BLVD Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community Document Path: \\epsilon2\GIS\ED_PW\_UTILITIES_\TRANSPORTATION\190517_SIGNALIZED INTERSECTIONS\190517_SIGNALIZED INTERSECTIONS\190517_SIGNALIZED INTERSECTIONS.aprxZ 0 1,000 2,000 3,000 4,000500 Feet Page 1 of 10 5/17/2019 Signalized Intersection Last updated on Friday, May 17, 2019 by devoef 190517_SIGNALIZED INTERSECTIONS INFORMATION SERVICES DEPT GIS DIVISIONMAP OF SIGNALIZED INTERSECTIONS devoef EXHIBIT A Page 53 of 217 ORDINANCE NO. 4472 AN ORDINANCE OF THE CITY OF PASCO, ESTABLISHING NEW PMC CHAPTER 2.135 CREATING AN ARTS AND CULTURE COMMISSION. WHEREAS, the sharing of culture through sight, word, dance and music enhances understanding and strengthens community; and WHEREAS, the Pasco City Council has established goals thoughtfully designed to enhance the quality of life, connectivity and community identity among Pasco residents in part through cultural and social opportunities; and WHEREAS, public art enriches publicly owned places, and contributes a sense of ownership and community pride in public facilities and spaces for City residents; and WHEREAS, the creation of the Arts and Culture Commission will assist in the promotion, retention and acquisition of public arts in the City; and WHEREAS, the Arts and Culture Commission will act as the City's representative in connection with cultural and artistic endeavors involving the City, as well as serve as a point of contact for such endeavors with the public; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That a new Chapter entitled "Arts and Culture Commission" of the Pasco Municipal Code shall be and hereby enacted and which shall read as follows: Chapter 2.135 ARTS AND CULTURE COMMISSION Sections: 2.135.010 Establishment. 2.135.020 2.135.030 Membership. Term of Office. 2.135.040 Powers and Duties. 2.135.050 Compensation. 2.135.060 Bylaws and Officers 2.135.070 Staff Support. 2.135.010 ESTABLISHMENT. Page 54 of 217 There is hereby established an Arts and Culture Commission for the City of Pasco which shall advise the City Council on matters relating to public art and culture including review and evaluation on matters pertaining to the acceptance procurement placement and maintenance of public art: and which shall perform such other functions as the City's primary resource in matters of public art 2.135.020 MEMBERSHIP The Arts and Culture Commission shall consist of seven members Members shall be appointed by the Mayor and confirmed by the City Council When making appointments City Council will strive to appoint individuals with multiple skills experience and expertise from various disciplines applicable to the commission's purpose Membership shall be comprised with the following: 1) Three (3) Art professionals to include professions such as art directors educators managers/administrators, dealers and/or individuals enrolled in higler education art programs. 2) One (1) Artist including but not limited to: painting sculpture music literature architecture, and performing arts Member is required to live work or own business within Pasco city limits. 3) Two (2) Community members to include persons of public agencies organizations enhancing Pasco's quality of life or, persons working outside of professional practice in the arts but who demonstrate a deep interest in and understanding of public art activities. Member is required to live, work or own business within Pasco city limits 4) One (1) Youth representative between the ages of 15 to 20 Years old at the time of appointment, nexus to Pasco is required. 2.135.030 TERM OF OFFICE The members shall serve for terms of four years expiring in even Years To ensure continuity of Arts and Culture Commission positions will be staggered with the exception of youth member which shall expire every even year. 2.135.040 POWERS AND DUTIES The Arts and Culture Commission shall perform the following functions: 1) Serve as the central commission to whom individuals and erouns may bring their ideas with regard to arts and culture. 2) Advise City Council on code recommendations to enhance art and culture Page 55 of 217 33) Establish policy for acquiring maintaining, displaving/placement and maintenance of Ci1y's public art. 4) Advise City staff on the receipt of and/or purchase of artwork to be placed on municipal property. 5) Explore and recommend methods of obtaining financial support through development of private, local, state and federal funds and establishingnublic/private partnerships to promote art and culture within the community. Commission shall not incur any indebtedness on behalf of City. 6) Initiate and maintain the City of Pasco Public Art roster. 7) Establish standards related to art and culture programs and serve as review panel for program applications. 8) Participate in, promote and conduct public information and educational programs pertaining to public art and culture. 9) Perform other related functions assigned to the Commission by the Pasco City Council or the City Manager. 10) Act as a catalyst to bring government arts and culture and private sectors together for public benefit. 2.135.050 COMPENSATION All members shall serve without compensation 2.135.060 BYLAWS AND OFFICERS The Arts and Culture Commission shall establish and adopt its own bylaws of procedure and shall select from among its membership a chairperson and such other officers as maybe necessary to conduct the Commission's business 2.135.070 STAFF SUPPORT A staff member appointed by the City Manager shall be the staff liaison officer for the Commission and, in this capacity, shall represent the day-to-day interests of the Cit a s they relate to the business of the Arts and Culture Commission Section 2. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. Page 56 of 217 PASSED by the City Council of the City of Pasco, this 18th day of November, 2019. Matt Watkins Mayor ATTEST: Debra Barham City Clerk Page 57 of 217 AGENDA REPORT FOR: City Council October 26, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Rick White, Director Community & Economic Development SUBJECT: Resolution - Street Name Revision: Madison Park Planned Unit Development, Phase 7 I. REFERENCE(S): Proposed Resolution II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. _____, renaming Melita Lane to Philippi Lane and Lystra Lane to Nauvoo Lane in Madison Park Planned Unit Development, Phase 7. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The Madison Park PUD Phase 7 Final Plat was recorded incorrectly with two (2) errors in street naming. Melita Lane, a previously existing north/south street, was recorded extending into an east/west street. Additionally, Lystra Lane was recorded as a new street as a connection onto the incorrectly recorded east/west Melita Lane. The designation of streets consistent with street naming conventions is essential to efficient and effective emergency dispatching and response. Accordingly it is necessary to was revise the aforementioned street names as originally provided by staff. City Council considered this issue at the Council Workshop meeting of October 25, 2021. Page 58 of 217 V. DISCUSSION: The remedy for this issue is to approve and record a resolution re vising the recorded street names to match those of the initial addressing packet. A revised addressing packet reflecting this change has been circulated to stakeholders for review with no opposition expressed. Council concurrence with the proposed Resolution is requested. Page 59 of 217 Resolution – Renaming two Streets within Madison Park PUD - 1 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City of Pasco, Washington Attn: City Clerk 525 North 3rd Avenue Pasco, WA 99301 _________________________________________________________________________________ RESOLUTION NO. ______ A RESOLUTION RENAMING THE EAST WEST PORTION OF MELITA LANE TO PHILIPPI LANE AND THE NORTH SOUTH ROAD LYSTRA LANE TO NAUVOO LANE IN MADISON PARK PUD PHASE 7 WHEREAS, the identification of streets plays an important function in maintaining the safety and welfare of the public; and WHEREAS, the street names are the principal means for the public to reference and locate properties in the City; and WHEREAS, pursuant to Pasco Municipal Code (PMC) 21.15.010(4) street names shall when practical be named to conform to existing streets and new street names shall also be reviewed by the Planning Department, Fire Department, and Emergency Dispatch to ensure no confusion exists concerning current street names; and WHEREAS, Madison Park Planned Unit Development (PUD) Phase 7 was recently recorded and included the extension of Melita Lane as an east west street and created Lystra Lane as a north south street; and WHEREAS, an addressing packet was provided during the platting phase showing Melita Lane transitioning into Philippi Lane and the continuation of Nauvoo Lane; and WHEREAS, the remedy for this issue is revising the street names to match those provided within the addressing packet; and WHEREAS, the revised street names to match the addressing packet has been dispersed for review; and Page 60 of 217 Resolution – Renaming two Streets within Madison Park PUD - 2 WHEREAS, after review of the proposed new street names the Planning Department, Fire Department, and Emergency Dispatch have not found a conflict with existing street names that may lead to confusion in the event of an emergency response. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. That the former east to west segment of Melita Lane and Lystra Lane as depicted in Exhibit A, and attached hereto, be renamed Philippi Lane and Nauvoo Lane respectively. Section 2. That a certified copy of this Resolution be recorded by the City Clerk of the City of Pasco in and with the office of the Auditor of Franklin County, Washington. PASSED by the City Council of the City of Pasco, Washington, this day of November, 2021. Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 61 of 217 Exhibit A – Madison Park PUD Phase 7 Revisions Page 62 of 217 AGENDA REPORT FOR: City Council September 1, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Richa Sigdel, Finance Director Finance SUBJECT: General Fund Monthly Report - August & September 2021 I. REFERENCE(S): General Fund Report II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: N/A III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Attached is the monthly financial update through September 2021 regarding the General Fund, the City's major fund. The administration provides quarterly reports to Council for other non-major funds. V. DISCUSSION: Staff is anticipating increases in revenue and expenses in the General Fund. Some impacts of COVID-19 pandemic-related grants and bargaining unit negotiations have been approved by Council. A review of other bargaining unit negotiations, as well as the cost of living increases for the non -represented group, will be presented to Council by the end of the calendar year. Staff is monitoring the impacts of COVID-19 on operational costs and new funding opportunities that can help mitigate such efforts, as well as impact to General Fund revenue from continued growth in the building industry and inventory issues in the auto industry. Page 63 of 217 2021-2022 revenue and expense budgets were prepared conservatively due to uncertainty over economic conditions. During the budget preparation, the nation was preparing for national elections, the status of vaccination approvals, and the immunization schedules were unknown. As discussed during that time, utilizing this mid-biennium adjustment process to revise the budget with a better economic outlook was more favorable for the City. We have received sales tax data as of August 2021 and the trends show a City that has not slowed down during the pandemic. There are sectors that have suffered, but overall the economic activity has sustained, with construction and vehicle sales sectors leading the pack. The City received over $8.7 million of the $17.4 million allocated through the American Rescue Plan Act of 2021 on June 8, 2021. The revenue is included in this report. The remainder of the balance is expected to be received la ter in the year. The funds must be appropriated by December 31, 2024, and expended by December 31, 2026, or subsequently returned to the federal treasury. For more details please visit MRSC American Rescue Plan. Approximately $4,824,000 has been allocated by end of September on various items approved/discussed by the Council. Attached to the financial report is a list of contracts over $100,000 and under $300,000 executed administratively during the month of August and September. Donations to the City which were received during this reporting period are attached. Page 64 of 217 Fund NameFund DescriptionReport MonthElapsed Time37%2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Ammended2021-2022 Actual2021-2022 ProjectedVariance% of Biennial BudgetCommentsRevenuesTaxesProperty 16,316,052 21,767,256 22,947,637 22,947,637 6,711,158 23,554,637 607,000 29% Timing of disbursemen from the County.Sales 30,519,671 35,200,331 34,100,746 34,100,746 12,276,116 38,315,746 4,215,000 36% Expected to exceed budget.Utility 18,995,895 22,036,029 22,584,924 22,584,924 7,307,607 23,947,157 1,362,233 32% Expected to exceed budget.Other 2,551,885 1,745,982 1,922,780 1,922,780 813,623 2,342,780 420,000 42% Expected to exceed budget.Licenses & Permits 4,817,955 5,353,309 5,565,781 5,565,781 2,901,276 6,340,746 774,965 52% Majority of business, animal and rental licenses renewal cycle is during the beginning of the year.Intergovernmental 4,424,573 7,128,607 4,684,217 7,169,427 4,209,830 6,684,217 -485,210 59% CBC West COVID-19 Testing Site grant reimbursements. ARPA8,732,156 8,732,156 8,732,156 0 100%Charges Goods & Services 14,318,019 14,759,968 15,641,239 15,641,239 6,490,312 17,424,425 1,783,186 41% Expected to exceed budget.Fines & Forfeits 1,731,795 1,980,386 2,546,354 2,546,354 687,326 2,066,354 -480,000 27% Traffic fines for 2021 are behind expected revenue collection. Not expected to make target.Miscellaneous 3,258,840 25,990,766 3,092,200 3,092,200 1,506,494 6,227,562 3,135,362 49% Land sale was not budgeted.Total Revenues 96,934,685 135,962,634 113,085,878 124,303,244 51,635,899 135,635,780 11,332,536 46%ExpendituresCity Council 236,451 237,480 298,771 298,771 80,297 298,771 0 27%Municipal Court 2,962,894 3,247,659 3,770,737 3,770,737 1,280,840 3,770,737 0 34%City Manager 3,344,685 2,807,029 3,631,100 3,631,100 766,949 3,631,100 0 21% Non labor budget that is not linear in nature.Human Resources 0 0 1,724,093 1,724,093 527,734 1,724,093 0 31%Police 33,063,355 34,581,074 37,305,876 37,305,876 12,732,814 37,305,876 0 34%Fire 15,535,448 16,245,559 16,689,415 17,389,415 7,335,849 17,389,415 0 42% Expenses related to vaccination site, Administrative & Community Services 14,873,303 15,402,365 19,105,744 19,105,744 6,353,294 19,105,744 0 33%Community & Economic Development 3,664,455 4,719,199 6,364,647 6,364,647 2,821,607 6,364,647 0 44% New initiatives started that were not budgetd, as well as complex permitting project.Finance 4,466,769 5,186,975 5,566,468 5,566,468 1,949,477 5,566,468 0 35%Engineering 3,282,535 3,485,296 2,867,773 2,867,773 970,311 2,867,773 0 34%Library 2,821,444 2,871,017 3,281,856 3,281,856 1,307,989 3,281,856 0 40%Non-Departmental 4,820,646 5,150,982 4,789,737 14,821,893 4,081,923 14,821,893 0 28% CBC West COVID-19 Testing Site activity, expenses reimbursed by BF Health District. ARPA funds.Debt & Transfer Out 5,507,074 22,395,176 11,813,974 11,813,974 2,997,723 11,813,974 0 25% No variance expected if capital projects are on schedule.Total Expenditures 94,579,059 116,329,811 117,210,191 127,942,347 43,206,808 127,942,347 0 37%Status - LaborStatus - Non LaborAnticipated Future IssueGeneral FundLargest fund within the City portfolio. Taxes are major revenue sources and Public Safety salaries and benefits are major expenses within this fund.Expected to be on track. Expected to be on track.Expected to be on track. September, 2021Page 65 of 217 -$20,000$0$20,000$40,000$60,000$80,000$100,000$120,000Jan 2021Feb 2021Mar 2021Apr 2021May 2021Jun 2021Jul 2021Aug 2021Sep 2021Oct 2021Nov 2021Dec 2021Jan 2022Feb 2022Mar 2022Apr 2022May 2022Jun 2022Jul 2022Aug 2022Sep 2022Oct 2022Nov 2022Dec 2022Thousands2021-2022 Cumulative General Fund Revenue & Expenditures2021-2022 Cumulative Revenue2021-2022 Cumulative Expense7-Yr Avg Revenue7-Yr Avg Expense$8.7M in ARPA FundingPage 66 of 217 Recipient Contract Type Description Contract Amount Amendment Contract Total Category Column1 Column2 Column3 Column4 Column5 TOTALSPRICE PER UNITEXTENSION TOTALS- SEWER- MAINS IN FEET- MANHOLES- NUMBER OF SERVICES- TOTALSCity of Pasco DonationsWATERDonated By Donation Type DescriptionValueMAINS IN FEETVolunteer Reading Group Book bags with and school su After-school Program500 FIRE HYDRANTSSecond HarvestHealthy Snacks After-school Program300 SERVICESSecond HarvestHealthy Snacks After-school Program400 NUMBER OF VALVESRunners Soul Cash Lampson Cable Bridge Run 250 TOTALSSTREETSASPHALT IN FEETTRAFFIC SIGNALSSTREET CURBS IN FEET/ST/SWSTREET LIGHTSSTOP SIGNSMONUMENTSTOTALSSTORM DRAINLINES IN FEETCATCH BASINSMANHOLESEXFILTRATION STORM DRAINDRYWELLTOTALS IRRIGATIONLINES IN FEETNUMBER OF VALVESNUMBER OF SERVICESTOTALSCity of Pasco Monthly Tracking Report of Contracts/Purchases Over 100k and Under 300kCity of Pasco Infrastructure Donations (Year to Date Donations)Page 67 of 217 AGENDA REPORT FOR: City Council October 28, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Rick White, Director Community & Economic Development SUBJECT: Ordinance - Amending Chapter 25.90 of the Pasco Municipal Code I. REFERENCE(S): Proposed Ordinance - OPTION A Proposed Ordinance - OPTION B II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: CONDUCT AN OPEN RECORD HEARING MOTION: I move to approve Ordinance No. ______, Option __, amending Chapter 25.90 "C-2 Central Business District" of the Pasco Municipal Code, and further, authorize publication by summary only. III. FISCAL IMPACT: None. IV. HISTORY AND FACTS BRIEF: As determined by Council at the October 4, 2021 Regular Meeting, staff initiated the process for a text amendment to the Pasco Municipal Code (PMC) Chapter 25.90 C-2 Central Business District Zone. The process requires public notice per the PMC Section 25.210.040, which has been accomplished and an Open Record Hearing - in this case, held by City Council. Per the discussion on this matter at the October 4 City Council meeting, staff has prepared the proposed Ordinance reflecting uses that Council indicated a desire to strike from the "Prohibited Uses" in Section 25.90.050 of the PMC. Page 68 of 217 V. DISCUSSION: Passage of the proposed Ordinance by Council at this meeting will result in an effective date of the amendment on November 9, 2021. An optional version of the proposed Ordinance (OPTION "B") has been included with this agenda report. It was prepared by staff after comments from Councilmember Maloney were received. Page 69 of 217 Ordinance Amending PMC 25.90 - 1 ORDINANCE NO. ____ OPTION A AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING CHAPTER 25.90 “C-2 CENTRAL BUSINESS DISTRICT” OF THE PASCO MUNICIPAL CODE WHEREAS, the City of Pasco has zoning regulations that encourage orderly growth and development of the City; and WHEREAS, from time to time, the City Council causes the zoning regulations to be reviewed to ensure they fulfill their intended purposes; and WHEREAS, retail uses rely on synergistic relationships with other retail uses to draw customers; and WHEREAS, retail uses do best in high-visibility locations near major routes to attract the attention of customers; and WHEREAS, Section 25.210.020(3)(b) of the Pasco Municipal Code Requires that any proposed zoning code amendment must comply with Pasco Comprehensive Plan; and WHEREAS, the proposed changes to Chapter 25.90 of the Pasco Municipal Code are consistent with the City of Pasco’s 2018-2038 Comprehensive Plan’s Economic Development Policy 1-A to “[p]romote an environment which supports the development and expansion of business opportunities,” Economic Development Policy 1-B to “[c]ontinue efforts to attract and recruit new employers to the community with promotional efforts in cooperation with other Tri- Cities partners,” Economic Development Policy 4-C to “[p]ursue the ongoing revitalization of Downtown Pasco including incentivizing development in the Central Business District, and following the Main Street approach as well as the Central District,” and the purpose of the Central Business District “to promote a centralized location of businesses and services in and around Pasco’s downtown core;” and WHEREAS, an amendment to this Chapter was processed in conformance with Chapter 25.210 of the Pasco Municipal Code; and WHEREAS, City Council held an open record hearing Monday November 1, 2021, to discuss the proposed changes to the Section 25.90 of the Pasco Municipal Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That Chapter 25.90 entitled “C-2 Central Business District” of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: Page 70 of 217 Ordinance Amending PMC 25.90 - 2 Chapter 25.90 C-2 CENTRAL BUSINESS DISTRICT Sections: 25.90.010 Purpose. 25.90.020 Permitted uses. 25.90.030 Permitted accessory uses. 25.90.040 Conditional uses. 25.90.050 Prohibited uses. 25.90.060 Development standards. 25.90.010 Purpose. The C-2 central business district is established to promote the centralization of business and reinforce a positive public image and confidence in the downtown core, a compact commercial area having primarily common-wall building construction. Such construction offers the unique opportunity within the Pasco Urban Area to cluster together types of retail business and retail services which functionally interact well together, and will economically fare better, as a result of close proximity by cumulatively attracting more persons than as individual destination points. It is intended that the commercial clustering concept be fostered by emphasizing pedestrian access and circulation within the district, in a manner which is healthy, safe, uninhibited and convenient for employees and visitors of all ages. Public and private off-street parking shall be located to encourage pedestrian movement. On-street parking should be oriented to short duration convenience parking for customers in the vicinity. In order to preserve the public health, safety and welfare in the central business district, protect public and private investment in property and infrastructure improvements and improve property values, certain uses of the land may be restricted or prohibited. [Ord. 4356 § 1, 2017; Ord. 3354 § 2, 1999; Code 1970 § 25.44.010.] 25.90.020 Permitted uses. The following uses shall be permitted in the C-2 district: (1) Amusement game centers; (12) Antique stores as defined by PMC 25.15.030; (23) Artist and office supplies; (34) Bakeries; (45) Banks and financial institutions; (56) Barber and beauty shops; Page 71 of 217 Ordinance Amending PMC 25.90 - 3 (7) Billiard and pool halls; (68) Bookstores, except adult bookstores; (9) Card rooms, bingo parlors, dance halls, nightclubs and similar places; (710) Clothing, shoes and accessories, and costume rentals (new/unused materials only); (11) Commissaries for the preparation of food to be served elsewhere; (812) Consignment stores (PMC 25.165.160) and thrift shops (PMC 25.165.170); (913) Crafts, stationery and gift shops; (1014) Department and drug stores; (1115) Electronic sales and repair stores with at least 50 percent of the stock and floor space devoted to the sale of new equipment; (1216) Fresh and frozen meats, including seafood; (1317) Florists; (1418) Furniture and home appliance stores; (1519) Galleries for art and restored or refinished antiques; (1620) Grocery stores with less than 10,500 square feet of gross floor area; (1721) Hardware and home improvement stores; (1822) Import shops; (1923) Jewelry and gem shops, including custom work; (2024) Offices for medical and professional services; (25) Membership clubs; (2126) Restaurants, sandwich shops, cafeterias and delicatessens; (27) Secondhand dealers; similar or like uses although not specifically listed are also allowed; (2228) Sporting goods; Page 72 of 217 Ordinance Amending PMC 25.90 - 4 (2329) Tailoring and seamstress shops; (30) Taverns; (2431) Theaters for movies and performances, except adult theaters; (2532) Public markets for fresh produce and craft work; (2633) Parking lots; (2734) Micro-breweries, micro-wineries; (2835) Research, development and assembly facilities for component devices and equipment of an electrical, electronic or electromagnetic nature; and (2936) Home brewing and/or winemaking equipment sales. (3037) Dwelling units, provided the units are within the principal building, are all above the ground floor of said building, the ground floor of said building is designed or intended to be used for a use permitted in PMC 25.90.020, and there is at least one dedicated and off-street parking space for each unit. [Ord. 4356 § 2, 2017; Ord. 3354 § 2, 1999; Code 1970 § 25.44.020.] 25.90.030 Permitted accessory uses. The following accessory uses and buildings, as respectively defined in PMC 25.15.030 and 25.15.040, shall be permitted in the C-2 district: (1) Parking lots; (2) Alcoholic beverage sales, provided it is for on-site consumption and located within a restaurant; (3) Other uses clearly incidental or secondary to a principal use; (4) Beer/wine beverage sales for on-site and off-site consumption, provided the product is produced in Franklin, Walla Walla, Yakima and/or Benton Cou nty or onsite in a micro-brewery/winery/distillery; (5) Sales of micro-brewery products and nonfortified wines for off-site consumption, provided such sales are in conjunction with an establishment selling predominantly, based upon floor area, home brewing and/or winemaking equipment as permitted in PMC 25.90.020. Page 73 of 217 Ordinance Amending PMC 25.90 - 5 (6) Storage buildings, excluding container storage, as defined in PMC 25.15.210, are permitted. [Ord. 4356 § 3, 2017; Ord. 3735 § 5, 2005; Ord. 3354 § 2, 1999; Code 1970 § 25.44.030.] 25.90.040 Conditional uses. The following uses are permitted subject to the approval of a special permit: (1) Unclassified uses per PMC 25.200.020. [Ord. 4356 § 4, 2017; Ord. 4110 § 19, 2013; Ord. 3537 § 6, 2002; Ord. 3354 § 2, 1999; Code 1970 § 25.44.040.] 25.90.050 Prohibited uses. Evidence received by the Planning Commission and contained in previous studies and Pasco Police crime reports demonstrates that certain uses make the central business district less desirable or attractive to the public due to a demonstrated history of contribution to general public disorder, loitering, nuisance and other acts detrimental to the public image of the area. Certain other uses provide entirely, or predominantly, automobile services and, thereby, do not foster the clustering concept intended to attract pedestrian visitors. Other uses may, by their inherent nature, require a disproportionate amount of the limited vicinal on-street parking, for an extended time, which is intended to be available and shared by all business for the short duration convenience of customers. The following listed businesses, for the reasons above, inhibit new business growth, contribute to business loss and decline of property values, inhibit convenient access to vicinal businesses, do not foster the clustering concept intended to orient the business environment to pedestrians, or perpetuate a public image which is undesirable or unattractive and detrimental to public and private investment in revitalization efforts and, therefore, are prohibited within the C-2 district: (1) Gasoline and service stations, automobile services or repair, except tire stores; (2) Outdoor storage of goods or materials; (3) Membership clubs; (4) Taverns; (5) Billiard and pool halls; (6) Amusement game centers; (73) Pawn shops; (8) Card rooms, bingo parlors, dance halls, nightclubs and similar places; Page 74 of 217 Ordinance Amending PMC 25.90 - 6 (94) Adult theaters, adult bookstores, tattoo parlors, bathhouses and massage parlors; (105) Community service facilities level two; (11) Secondhand dealers; similar or like uses although not specifically listed are also prohibited; (12) Commissaries for the preparation of food to be served elsewhere; and (136) Adult business facilities. [Ord. 4356 § 5, 2017; Ord. 4110 § 19, 2013; Ord. 3514 § 6, 2001; Ord. 3354 § 2, 1999; Code 1970 § 25.44.050.] 25.90.060 Development standards. (1) Minimum lot area: Not required, except for nonconforming residential uses which must retain a minimum of 5,000 square feet for single-family and 3,000 square feet for each additional unit; (2) Lot coverage: No requirement; (3) Minimum Yard Setbacks. (a) Front: None required, except where adjoining a residential district, in which case there shall be provided a setback equal in width or depth to that required in the residential district; (b) Side: None required, except where adjoining a residential district, in which case there shall be provided a setback equal in width or depth to that required in the residential district; (c) Rear: None required, except where adjoining a residential district, in which case there shall be provided a setback equal in width or depth to that required in the residential district; (4) Maximum building height: 45 feet, except a greater height may be approved by special permit; (5) Fences and hedges: See Chapter 25.180 PMC; (6) Parking: None required; and (7) Landscaping: None required except as provided in Chapter 25.180 PMC. [Ord. 4110 § 19, 2013; Ord. 3354 § 2, 1999; Code 1970 § 25.44.060.] Section 2. This Ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. Page 75 of 217 Ordinance Amending PMC 25.90 - 7 PASSED by the City Council of the City of Pasco, Washington this 1st day of November, 2021. Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Published: ________________________ Page 76 of 217 Ordinance Amending PMC 25.90 - 1 ORDINANCE NO. OPTION “B” AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING CHAPTER 25.90 “C-2 CENTRAL BUSINESS DISTRICT” OF THE PASCO MUNICIPAL CODE WHEREAS, the City of Pasco has zoning regulations that encourage orderly growth and development of the City; and WHEREAS, from time to time, the City Council causes the zoning regulations to be reviewed to ensure they fulfill their intended purposes; and WHEREAS, retail uses rely on synergistic relationships with other retail uses to draw customers; and WHEREAS, retail uses do best in high-visibility locations near major routes to attract the attention of customers; and WHEREAS, Section 25.210.020(3)(b) of the Pasco Municipal Code Requires that any proposed zoning code amendment must comply with Pasco Comprehensive Plan; and WHEREAS, the proposed changes to Chapter 25.90 of the Pasco Municipal Code are consistent with the City of Pasco’s 2018-2038 Comprehensive Plan’s Economic Development Policy 1-A to “[p]romote an environment which supports the development and expansion of business opportunities,” Economic Development Policy 1-B to “[c]ontinue efforts to attract and recruit new employers to the community with promotional efforts in cooperation with other Tri- Cities partners,” Economic Development Policy 4-C to “[p]ursue the ongoing revitalization of Downtown Pasco including incentivizing development in the Central Business District, and following the Main Street approach as well as the Central District,” and the purpose of the Central Business District “to promote a centralized location of businesses and services in and around Pasco’s downtown core;” and WHEREAS, an amendment to this Chapter was processed in conformance with Chapter 25.210 of the Pasco Municipal Code; and WHEREAS, City Council held an open record hearing Monday November 1, 2021, to discuss the proposed changes to the Section 25.90 of the Pasco Municipal Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That Chapter 25.90 entitled “C-2 Central Business District” of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: Page 77 of 217 Ordinance Amending PMC 25.90 - 2 Chapter 25.90 C-2 CENTRAL BUSINESS DISTRICT Sections: 25.90.010 Purpose. 25.90.020 Permitted uses. 25.90.030 Permitted accessory uses. 25.90.040 Conditional uses. 25.90.050 Prohibited uses. 25.90.060 Development standards. 25.90.010 Purpose. The C-2 central business district is established to promote the centralization of business and reinforce a positive public image and confidence in the downtown core, a compact commercial area having primarily common-wall building construction. Such construction offers the unique opportunity within the Pasco Urban Area to cluster together types of retail business and retail services which functionally interact well together, and will economically fare better, as a result of close proximity by cumulatively attracting more persons than as individual destination points. It is intended that the commercial clustering concept be fostered by emphasizing pedestrian access and circulation within the district, in a manner which is healthy, safe, uninhibited and convenient for employees and visitors of all ages. Public and private off-street parking shall be located to encourage pedestrian movement. On-street parking should be oriented to short duration convenience parking for customers in the vicinity. In order to preserve the public health, safety and welfare in the central business district, protect public and private investment in property and infrastructure improvements and improve property values, certain uses of the land may be restricted or prohibited. [Ord. 4356 § 1, 2017; Ord. 3354 § 2, 1999; Code 1970 § 25.44.010.] 25.90.020 Permitted uses. The following uses shall be permitted in the C-2 district: (1) Amusement game centers; (12) Antique stores as defined by PMC 25.15.030; (23) Artist and office supplies; (34) Bakeries; (45) Banks and financial institutions; (56) Barber and beauty shops; Page 78 of 217 Ordinance Amending PMC 25.90 - 3 (7) Billiard and pool halls; (68) Bookstores, except adult bookstores; (9) Card rooms, bingo parlors, dance halls, nightclubs and similar places; (710) Clothing, shoes and accessories, and costume rentals (new/unused materials only); (11) Commissaries for the preparation of food to be served elsewhere; (811) Consignment stores (PMC 25.165.160) and thrift shops (PMC 25.165.170); (912) Crafts, stationery and gift shops; (1013) Department and drug stores; (1114) Electronic sales and repair stores with at least 50 percent of the stock and floor space devoted to the sale of new equipment; (1215) Fresh and frozen meats, including seafood; (1316) Florists; (1417) Furniture and home appliance stores; (1518) Galleries for art and restored or refinished antiques; (1619) Grocery stores with less than 10,500 square feet of gross floor area; (1720) Hardware and home improvement stores; (1821) Import shops; (1922) Jewelry and gem shops, including custom work; (2023) Offices for medical and professional services; (24) Massage businesses; (25) Membership clubs; (2126) Restaurants, sandwich shops, cafeterias and delicatessens; (28) Secondhand dealers; similar or like uses although not specifically listed are also allowed in conformance with this Section; Page 79 of 217 Ordinance Amending PMC 25.90 - 4 (2227) Sporting goods; (2328) Tailoring and seamstress shops; (29) Tattoo shops or businesses; (30) Taverns and bars; (2431) Theaters for movies and performances, except adult theaters; (2532) Public markets for fresh produce and craft work; (2633) Parking lots; (2734) Micro-breweries, micro-wineries and tasting rooms; (2835) Research, development and assembly facilities for component devices and equipment of an electrical, electronic or electromagnetic nature; and (2936) Home brewing and/or winemaking equipment sales; and. (3037) Dwelling units, provided the units are within the principal building, are all above the ground floor of said building, the ground floor of said building is designed or intended to be used for a use permitted in PMC 25.90.020, and there is at least one dedicated and off-street parking space for each unit. [Ord. 4356 § 2, 2017; Ord. 3354 § 2, 1999; Code 1970 § 25.44.020.] 25.90.030 Permitted accessory uses. The following accessory uses and buildings, as respectively defined in PMC 25.15.030 and 25.15.040, shall be permitted in the C-2 district: (1) Parking lots; (2) Alcoholic beverage sales, provided it is for on-site consumption and located within a restaurant; (3) Other uses clearly incidental or secondary to a principal use; (4) Beer/wine beverage sales for on-site and off-site consumption, provided the product is produced in Franklin, Walla Walla, Yakima and/or Benton County or onsite in a micro-brewery/winery/distillery; (5) Sales of micro-brewery products and nonfortified wines for off-site consumption, provided such sales are in conjunction with an establishment selling predominantly, based Page 80 of 217 Ordinance Amending PMC 25.90 - 5 upon floor area, home brewing and/or winemaking equipment as permitted in PMC 25.90.020. (6) Storage buildings, excluding container storage, as defined in PMC 25.15.210, are permitted. [Ord. 4356 § 3, 2017; Ord. 3735 § 5, 2005; Ord. 3354 § 2, 1999; Code 1970 § 25.44.030.] 25.90.040 Conditional uses. The following uses are permitted subject to the approval of a special permit: (1) Unclassified uses per PMC 25.200.020. [Ord. 4356 § 4, 2017; Ord. 4110 § 19, 2013; Ord. 3537 § 6, 2002; Ord. 3354 § 2, 1999; Code 1970 § 25.44.040.] 25.90.050 Prohibited uses. Evidence received by the Planning Commission and contained in previous studies and Pasco Police crime reports demonstrates that certain uses make the central business district less desirable or attractive to the public due to a demonstrated history of contribution to general public disorder, loitering, nuisance and other acts detrimental to the public image of the area. Certain other uses provide entirely, or predominantly, automobile services and, thereby, do not foster the clustering concept intended to attract pedestrian visitors. Other uses may, by their inherent nature, require a disproportionate amount of the limited vicinal on-street parking, for an extended time, which is intended to be available and shared by all business for the short duration convenience of customers. The following listed businesses, for the reasons above, inhibit new business growth, contribute to business loss and decline of property values, inhibit convenient access to vicinal businesses, do not foster the clustering concept intended to orient the business environment to pedestrians, or perpetuate a public image which is undesirable or unattractive and detrimental to public and private investment in revitalization efforts and, therefore, are prohibited within the C-2 district: (1) Gasoline and service stations, automobile services or repair, except tire stores; (2) Outdoor storage of goods or materials; (3) Membership clubs; (4) Taverns; (5) Billiard and pool halls; (6) Amusement game centers; (73) Pawn shops; Page 81 of 217 Ordinance Amending PMC 25.90 - 6 (8) Card rooms, bingo parlors, dance halls, nightclubs and similar places; (94) Adult theaters, adult bookstores, tattoo parlors, and bathhouses and massage parlors; (105) Community service facilities level two; (116) Secondhand dealers; similar or like uses although not specifically listed are also prohibited; (127) Commissaries for the preparation of food to be served elsewhere; and (138) Adult business facilities. [Ord. 4356 § 5, 2017; Ord. 4110 § 19, 2013; Ord. 3514 § 6, 2001; Ord. 3354 § 2, 1999; Code 1970 § 25.44.050.] 25.90.060 Development standards. (1) Minimum lot area: Not required, except for nonconforming residential uses which must retain a minimum of 5,000 square feet for single-family and 3,000 square feet for each additional unit; (2) Lot coverage: No requirement; (3) Minimum Yard Setbacks. (a) Front: None required, except where adjoining a residential district, in which case there shall be provided a setback equal in width or depth to that required in the residential district; (b) Side: None required, except where adjoining a residential district, in which case there shall be provided a setback equal in width or depth to that required in the residential district; (c) Rear: None required, except where adjoining a residential district, in which case there shall be provided a setback equal in width or depth to that required in the residential district; (4) Maximum building height: 45 feet, except a greater height may be approved by special permit; (5) Fences and hedges: See Chapter 25.180 PMC; (6) Parking: None required; and (7) Landscaping: None required except as provided in Chapter 25.180 PMC. [Ord. 4110 § 19, 2013; Ord. 3354 § 2, 1999; Code 1970 § 25.44.060.] Page 82 of 217 Ordinance Amending PMC 25.90 - 7 Section 2. This Ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. 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 Published: Page 83 of 217 AGENDA REPORT FOR: City Council October 22, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Steve Worley, Director Public Works SUBJECT: *Public Meeting - PWRF for Requirement SERP Pretreatment Improvements Phase 1 - Potable Water and Electrical Improvements I. REFERENCE(S): SEPA 2021-085 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to commence a public meeting for the Process Water Reuse Facility (PWRF) Improvements Project - Phase 1: Potable Water & Electrical Improvements project. III. FISCAL IMPACT: There is no fiscal impact associated with this public meeting. Council previously approved a design contract with RH2 Engineering for the design of this PWRF Improvement Phase 1 project. The preconstruction (design) phase of this project is funded by low-interest pre-construction loans from the Public Works Board and the Washington State Department of Ecology (Ecology) Water Quality Combined Funding. IV. HISTORY AND FACTS BRIEF: The 2019 PWRF Facility plan identified a series of improvements to expand the facility future are users industrial Additional and current meet to needs. anticipated to be connected to the facility in 2022 and 2023. Expansion of current processors is also anticipated in the near term. The scope of the Pretreatment improvements recommended for the PWRF includes the following: • Extension of site utilities, piping infrastructure, and fire protection (Phase 1) Page 84 of 217 • Additional winter storage capacity (Phase 2) • Other pretreatment improvements (Phase 3 details to be determined) While the City continues to work with the facility stakeholders on defining the ultimate technologies to be applied for pretreatment of the industrial wastewater, backbone improvements were identified as an immediate need. Stakeholders agreed to move forward with design and construction in a phased approach. Due to the need to implement core facility improvements, Phase 1 improvements consist of Potable Water supply and Electrical Improvements. A 16-inch water main extension is proposed from the intersection of Foster Wells and Capitol Avenue to The facility. The waterline is to provide a potable supply for immediate and future needs as well as to provide fire protection for the Facility. Upgraded power supply to the PWRF is also needed based on near and long term power demand Improvements. This will include undergrounding the existing primary distribution powerline serving the facility. These improvements are anticipated to be constructed concurrently with the water main construction. These improvements are located in corridors that are already disturbed where other utilities exist. Pre-construction funds for Phase 1 improvements were awarded through the Public Works Board (PWB) in 2019 and through Ecology in 2021. However, it is the latter that requires submittal of environmental review documentation to comply with the State Environmental Review Process (SERP). Components of the SERP requirements include the following: • State Environmental Policy Act (SEPA) Checklist • National Historic Preservation Act (NHPA) Section 106 Cultural Review • Public participation and engagement through public notice and comment period (i.e., public meeting and advertisement of the meeting and comment period) • Environmental Justice (EJ) – targeting engagement of populations which consist of persons of color, low-income, and limited English proficiency within the PWRF service area Components of the completed SERP are: 1. the SEPA checklist application 2. corresponding combined notice of public comment period and public meeting 3. section 106 cultural review Page 85 of 217 To ensure transparency and enhanced engagement, all public notices published to date include Spanish translation with additional advertisements in a local Spanish-speaking news outlet and on the City’s website. V. DISCUSSION: The Water quality combined funding program, administered by Ecology, is ultimately intended to protect water quality in the Columbia River and groundwater in the Esquazel Coulee Watershed. The design of the PWRF pretreatment upgrades, Phase 1 project and all subsequent phases, will improve treatment capacity at the industrial wastewater facilities for the benefit all existing and future stakeholders, customers, and local community. The improvements to the PWRF also have a positive impact on the Municipal Wastewater Treatment plant, since it allows for the redirection of one processor currently discharging to the WWTP. Transferring the industrial flows from the WWTP to the PWRF frees up much needed capacity at WWTP to receive increased residential and commercial sewer flows. To emphasize this message, this meeting provides an opportunity for the public to ask questions and provide comment on the PWRF Pretreatment Phase 1 Improvements. The proposed public meeting is intended to engage the targeted EJ populations and other members of the public within the PWRF service area to discuss the following topics: • Explanation of project scope and need • Potential impact of project to existing rate payers (industrial users) • Any environmental impacts the project may have along with mitigation measures to offset any environmental impacts • Real estate transactions, such as land acquisitions (not applicable in this case) Ensuring full public engagement to include the targeted EJ demographic areas that are typically underrepresented in project proposal discussions not only allows the City to fulfill the partnership goals with Ecology, but it gives these populations an opportunity to understand and discuss the financial and environmental benefits that these upgrades will provid e. Page 86 of 217 AGENDA REPORT FOR: City Council October 22, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Steve Worley, Director Public Works SUBJECT: *Resolution - Amendment No. 1 to DKS Professional Services Agreement for Design Phase 2A of I-182/Broadmoor Blvd Interchange Project I. REFERENCE(S): Resolution Amendment II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. _________, authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement (PSA) with DKS Associates, Inc. (DKS) for Phase 2A of the I -82/Broadmoor Boulevard Interchange project. III. FISCAL IMPACT: Design Phase 1 (Planning): $679,073.00 Design Phase 2A (Survey, Geotech, Drainage): $146,266.31 Construction Phase: To be determined during design and coordination with the Washington Department of Transportation (WSDOT) *Budget request for the total project will be proposed for Council review during the Mid-biennium adjustment process. IV. HISTORY AND FACTS BRIEF: With the upcoming completion of the NW Area Sewer LID project, the Broadmoor area will be poised for new and transformational deve lopment. As Developers continue to show a keen interest in the Broadmoor area, recent traffic analyses completed as part of the Transportation System Master Plan indicated the need for improvement to the I-182 off ramps at the Broadmoor/Road 100 interchange under current volumes. Existing traffic backs up onto mainline I-182 causing Page 87 of 217 congestion and delays. Increased traffic from new development will exacerbate this congestion. Proposed improvements to be explored with WSDOT will include an eastbound loop offramp and an additional right turn lane on the westbound offramp. The final agreed upon improvements will ensure a much-improved level of service at this interchange that will accommodate future development in the Broadmoor area. V. DISCUSSION: Council approved an initial PSA with DKS for the planning phase of the I - 182/Broadmoor Interchange Improvement project. The planning phase is now underway, and final, preferred improvements will be identified soon. The subject amendment is for Phase 2A of the project, which includes the following: • Survey • Geotechnical Investigation • Civil Design - Drainage Concept Phase 2A is intended to provide site information needed to begin a preliminary design for off-ramp improvements from I-182 onto Broadmoor Boulevard. The outcomes from this work will support the next phase of the project (Phase 2B), which will carry interchange through the 30% design level. City staff and DKS negotiated the proposed scope of work and fee and staff recommends approval of Amendment No. 1 to the Professional Services Agreement the of 2A phase DKS the for Iwith design -182/Broadmoor Interchange Improvement project in the amount of $146,266.31. The biennial budget is proposed to be amended for this project as part of the mid-term biennial budget amendment process. This amendment was mentioned at Council’s September 20, 2021 regular meeting during the presentation for the original PSA. Page 88 of 217 Resolution - Amendment No. 1 to PSA - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT (PSA) WITH DKS ASSOCIATES, INC. (DKS) FOR THE DESIGN OF PHASE 2A TO THE I- 182/BROADMOOR BOULEVARD INTERCHANGE PROJECT. WHEREAS, the City and DKS entered into a Professional Services Agreement (PSA) on September 21, 2021, to provide engineering design services for the I-182/Broadmoor Interchange Improvements project; and WHEREAS, it was determined that the design of the I-182/Broadmoor Boulevard interchange project will consist of two phases; Phase 1 for WSDOT-required planning efforts and Phase 2 for design efforts; and WHEREAS, Phase 2A is intended to provide the site information such as surveying, geotechnical analysis, and stormwater analysis needed to begin a preliminary design of eastbound and westbound off-ramp improvements from I-182 onto Broadmoor Boulevard; and WHEREAS, the additional engineering design services are necessary to fulfill the original intent of the PSA with DKS and its addition. Parties hereto desire to execute Amendment No. 1 to the original PSA, attached hereto as Exhibit A; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. That the subject agreement is amended and will be modified as described within Exhibit A attached hereto to add additional engineering design services. Section 2. The City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Amendment on behalf of the City of Pasco. 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 89 of 217 Amendment No. 1 to Professional Services Agreement Page 1 DKS Associates, Inc. Broadmoor and I-182 Interchange Project AMENDMENT NUMBER 1 to PROFESSIONAL SERVICES AGREEMENT Broadmoor and I-182 Interchange Project Project No. 21292 AGREEMENT NO. 21-044 WHEREAS, the City and DKS Associates, Inc., entered into a Professional Services Agreement on 9/21/2021 to provide engineering services with respect to the Broadmoor and I- 182 Interchange project. NOW, THEREFORE, this agreement is amended to allow DKS Associates, Inc., to provide additional professional and design engineering services as described on Exhibit A. 1. Scope of Work: See Exhibit A. 2. Fee: The compensation for the additional work is based on a Time & Materials Basis of $146,266.31, increasing the overall total authorization amount to $825,339.31. See Exhibit B for full breakout. 3. Time of performance: No Change. The services shall be complete for the project on or before 12/31/2024. DATED THIS _______ DAY OF _____________, 2021. CITY OF PASCO: CONSULTANT City of Pasco DKS Associates, Inc. Dave Zabell – City Manager Richard J. Hutchinson, PE – Principal Page 90 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 1 INTERSTATE 182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A – SCOPE OF WORK DATE: October 26, 2021 TO: Steve Worley | City of Pasco FROM: Aaron Berger, PE | DKS Associates Richard Hutchinson, PE | DKS Associates SUBJECT: I-182 and Broadmoor Boulevard Interchange Project DRAFT Phase 2A Scope of Work Project #21x06-725 SCOPE OF WORK INTRODUCTION The I-182/Broadmoor Boulevard interchange design project is intended to identify, recommend, and design a solution that addresses the short and long-term interchange needs for all modes of travel. The design of the I-182/Broadmoor Boulevard interchange project will consist of two phases: Phase 1: Access Revision Report (ARR) and Initial Environmental Permitting Process – On-going Phase 2: Interchange Design – broken into multiple sub-phases (A, B, C, etc) This scope of work (titled Phase 2A) addresses initial critical tasks in Phase 2 required to support the initial interchange design, including the following: • Survey • Geotechnical Investigation • Civil Design – Drainage Concept This Phase 2A scope of work is intended to provide the site information needed to begin the preliminary design for improvements to the Broadmoor Interchange. The initial assumption for this scope of work is that the design will include a new eastbound loop off-ramp from I-182 onto Broadmoor Boulevard. The outcomes from this work will support the next phase of the project (Phase 2B), which will carry interchange design through 30% plans. Pending the outcoming of the on-going ARR phase (Phase 1) of this project, the survey, geotechnical, and drainage work conducted per this scope of work will be used to support the whatever improvement is selected as the preferred alternative for the interchange. If the footprint EXHIBIT A Page 91 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 2 of the preferred alternative differs significantly from the preliminary concept used to develop this scope of work and extends beyond the physical limits for this identified for this phase, additional survey, geotechnical, and drainage work will need to be conducted under a new task to cover any gaps in data and information. PHYSICAL PROJECT LIMITS For the purposes of Phase 2A, the project limits include the area anticipated to be affected by a new eastbound loop off-ramp from I-182 to Broadmoor Boulevard, as well as deceleration-lane widening on eastbound I-182. Exhibit 1 shows a conceptual layout for a new eastbound loop off- ramp, including potential retaining wall needs. EXHIBIT 1 Exhibit 2 outlines the area considered to be within the project limits of Phase 2A for survey and geotechnical exploration purposes. Page 92 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 3 EXHIBIT 2 SCOPE OF SERVICES This scope of services details work elements needed to support the CITY to complete the preliminary site work for an interchange modification at I -182 and Broadmoor Boulevard. This shall consist of the following major work elements: • Work Element 1 – Project Management • Work Element 2 – Survey • Work Element 3 – Geotechnical Investigation • Work Element 4 – Civil Design • Work Element 5 – Structural Design (no work under this scope) • Work Element 6 – Traffic Design (no work under this scope) Page 93 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 4 WORK TASKS 1 OVERALL PROJECT MANAGEME NT– (DKS ) 1.1 MONTHLY PROGRESS REPORTS AND BILLINGS The CONSULTANT shall prepare monthly progress reports, in a form approved by the CITY, that outlines in written and graphical forms the various phases of the work, and the order of performance, in sufficient detail so that the progress of the work can be easily evaluated. These reports shall • Highlight project milestones • Target potential problem areas needing special attention or coordination prior to delays occurring and provide a proposal for addressing problem areas • Outline activities planned for the next period • Compare actual work progress with contractual obligations • Show work complete (%) versus budget expended (%) for major tasks Progress reports shall include current scheduling reports, indicating all progress to date and resources expended. Progress shall be monitored and reported in diagram and quantitative forms to present a clear, concise, and understandable picture of the project status. This update shall also include any changes in schedule, sequence, or resource loading. If any schedule delays have occurred, a plan for bringing the work back on schedule, and back on budget, shall be included. Invoices shall be prepared by the CONSULTANT in a form and detail as approved by the CITY, and submitted on a monthly basis. These shall be supported by detailed record keeping closely tracking the project budget and expenditures. Deliverable(s) • Monthly progress reports, incorporating project schedule revisions as appropriate (electronic copy) • Monthly invoices 1.2 PROJECT ADMINISTRATION The CONSULTANT shall coordinate with SUBCONSULTANTs regarding contracting procedures, shall prepare and execute contracts with individual SUBCONSULTANTs, and shall address contract- related issues with the SUBCONSULTANTs as they arise during the project. As part of this task, the CONSULTANT shall also provide as-needed support to the CITY in the internal administration functions of the PROJECT. Page 94 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 5 1.3 PROJECT SCHEDULE The CONSULTANT shall prepare a project schedule that includes completion of all items identified in this scope of services. The CONSULTANT shall prepare a draft project schedule for the CITY to review. Following the CITY’s review, the CONSULTANT shall prepare a final project schedule that incorporates CITY comments. The CONSULTANT’s project manager shall conduct the project tracking, document control, and coordination efforts necessary for project execution. These efforts shall include the continuous tracking of schedules, budgets, and products; coordination with SUBCONSULTANTs relating to work in progress; and coordination with WSDOT and FHWA. Deliverable(s) • Draft project schedule • Final project schedule 1.4 PROJECT KICK -OFF MEETING The CONSULTANT shall prepare for and attend the project kick-off meeting with Pasco. This meeting will be conducted via video conferencing. The CITY will coordinate the meeting and will invite agency staff as needed. The CONSULTANT will prepare the meeting agenda and meeting materials. Assumptions • Meeting duration will be one hour • Meeting will be held remotely via web-conferencing services Deliverable(s) • Project kick-off meeting attended online by the CONSULTANT 1.5 COORDINATION MEETINGS WITH CITY/WSDOT The CONSULTANT shall host bi-weekly 30-minute coordination meetings with CITY and as needed other project stakeholder staff to provide an update on progress and review field permitting requirements. The CONSULTANT shall also use these meetings to apprise the City project manager of ongoing work tasks, upcoming review periods, schedule changes, and other project management related items. Assumptions • Meetings will be attended by the CONSULTANT Project Manager or Deputy Project Manager • Meeting durations will be 0.5 hours Deliverable(s) • Bi-weekly project coordination meetings hosted by the CONSULTANT via video conferencing. Page 95 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 6 2 SURVEY (HLA) 2.1 SURVEY PROJECT MANAGEMENT 2.1.1 MONTHLY INVOICING/BUDGET TRACKING The SUBCONSULTANT shall prepare monthly progress reports, in a form approved by the CONSULTANT and the CITY, that outlines in written and graphical forms the survey phase of the work, and the order of performance, in sufficient detail so that the progress of the work can be easily evaluated. These reports shall • Highlight project milestones • Target potential problem areas needing special attention or coordination prior to delays occurring and provide a proposal for addressing problem areas • Outline activities planned for the next period • Compare actual work progress with contractual obligations • Show work complete (%) versus budget expended (%) for major tasks Progress reports shall include current scheduling reports, indicating all progress to date and resources expended. Progress shall be monitored and reported in diagram and quantitative forms to present a clear, concise, and understandable picture of the project status. This update shall also include any changes in schedule, sequence, or resource loading. If any schedule delays have occurred, a plan for bringing the work back on schedule, and back on budget, shall be included . Subconsultant invoices shall be prepared in a form and detail as approved by the CITY, and submitted to the CONSULTANT on a monthly basis. These shall be supported by detailed record keeping closely tracking the project budget and expenditures. Deliverable(s) • Monthly progress reports, incorporating project schedule revisions as appropriate (electronic copy) • Monthly subconsultant invoices 2.1.2 PROJECT KICK -OFF The SUBCONSULTANT shall prepare for and attend the project kick-off meeting with Pasco. This meeting will include video conferencing options for project stakeholder attendees. The CONSULTANT and CITY will coordinate the meeting and will invite agency staff as needed. Assumptions • Meeting duration will be one hour Page 96 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 7 • Meeting will be held remotely via web-conferencing services Deliverable(s) • Project kick-off meeting attended online by the SUBCONSULTANT 2.1.3 COORDINATION MEETINGS WITH CITY/WSDOT The SUBCONSULTANT shall attend bi-weekly 30-minute coordination meetings with CITY and as needed other project stakeholder staff to provide an update on progress and review field permitting requirements. Assumptions • Meetings will be attended by the SUBCONSULTANT Project Manager • Meeting durations will be 0.5 hours Deliverable(s) • Attendance at bi-weekly project coordination meetings hosted by the CONSULTANT via video conferencing 2.2 TOPOGRAPHIC SURVEY The SUBCONSULTANT shall field survey the area shown in Exhibit 2. The survey will be performed with our survey drone where permitted by WSDOT. This will allow for the survey data to be collected safely and more efficiently. The SUBCONSULTANT will use planimetric surveying to supplement the drone survey and to provide quality assu rance. The survey will include the existing topography of the area, which will include, but is not limited to, edges of pavement, breaklines, pavement markings, fences, guardrails, walls, buildings, bridges/overpasses, signs/markers, bore hole/test pit locations and visible utilities. The location of underground utilities will be based on visible structures and from compiling information and plans from the various utility providers and from the field markings done by the 811 Call Before You Dig service. Topographic survey under the existing overpass will be included with this task. In addition, an existing surface of top and bottom of the existing overpass will be included with this task. ASSUMPTIONS • The CONSULTANT team will have access to WSDOT right-of-way to collect survey data. • 811 Call Before You Dig service marks the utilities when requested. • No potholing will be done to locate existing utilities at this time. • The SUBCONSULTANT will coordinate traffic control for any surveying done within the Interstate. Traffic control supplied will only cover surveying operations and will not apply to Geotechnical exploration/work. DELIVERABLES • Electronic AutoCAD Civil 3D file. Page 97 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 8 2.3 RIGHT -OF WAY PLAN The SUBCONSULTANT shall prepare an existing right-of-way basemap. The basemap will be to WSDOT standards. ASSUMPTIONS • The SUBCONSULTANT will have access to WSDOT right-of-way to collect survey monumentation. • The SUBCONSULTANT assumes at this point that no right-of-way acquisitions will occur. No title reports will be ordered at this time. The SUBCONSULTANT will use existing documents of record (surveys, short plats, binding site plans, long plats and WSDOT right -of-way plans) to prepare the right-of-way basemap. • The SUBCONSULTANT will be provided with WSDOT symbology and linework. DELIVERABLES • A hard paper copy and pdf file of the existing right-of-way basemap. • Electronic AutoCAD Civil 3D file of the existing right-of-way basemap. 2.4 CAD FILE PRODUCTION The SUBCONSULTANT shall prepare an AutoCAD Civil 3D file that includes, existing right -of-way lines, centerlines, existing topography, including a surface model. The file will be to WSDOT standards. ASSUMPTIONS • WSDOT symbology and linework standards are available on WSDOT’s website. DELIVERABLES • Electronic AutoCAD Civil 3D file. 3 GEOTECHNICAL INVESTIGATION (GEOENGINEERS) 3.1 GEOTECHNICAL TASK PROJECT MANAGEMENT 3.1.1 MONTHLY INVOICING/BUDGET TRACKING The SUBCONSULTANT shall prepare monthly progress reports, in a form approved by the CONSULTANT and the CITY, that outlines in written and graphical forms the survey phase of the work, and the order of performance, in sufficient detail so that the progress of the work can be easily evaluated. These reports shall • Highlight project milestones Page 98 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 9 • Target potential problem areas needing special attention or coordination prior to delays occurring and provide a proposal for addressing problem areas • Outline activities planned for the next period • Compare actual work progress with contractual obligations • Show work complete (%) versus budget expended (%) for major tasks Progress reports shall include current scheduling reports, indicating all progress to date and resources expended. Progress shall be monitored and reported in diagram and quantitative forms to present a clear, concise, and understandable picture of the project status. This update shall also include any changes in schedule, sequence, or resource loading. If any schedule delays have occurred, a plan for bringing the work back on schedule, and back on budget, shall be included. Subconsultant invoices shall be prepared by the SUBCONSULTANT in a form and detail as approved by the CITY, and submitted to the CONSULTANT on a monthly basis. These shall b e supported by detailed record keeping closely tracking the project budget and expenditures. Deliverable(s) • Monthly progress reports, incorporating project schedule revisions as appropriate (electronic copy) • Monthly subconsultant invoices 3.1.2 PROJECT KICK -OFF The SUBCONSULTANT shall prepare for and attend the project kick-off meeting with Pasco. This meeting will include video conferencing options for project stakeholder attendees. The CONSULTANT and CITY will coordinate the meeting and will invite agency staff as needed. Assumptions • Meeting duration will be one hour • Meeting will be held remotely via web-conferencing services Deliverable(s) • Project kick-off meeting attended online by the SUBCONSULTANT 3.1.3 COORDINATION MEETINGS WITH CITY/WSDOT The SUBCONSULTANT shall attend bi-weekly 30-minute coordination meetings with CITY and as needed other project stakeholder staff to provide an update on progress and review field permitting requirements. Assumptions • Meetings will be attended by the SUBCONSULTANT Project Manager • Meeting durations will be 0.5 hours Page 99 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 10 Deliverable(s) • Attendance at bi-weekly project coordination meetings hosted by the CONSULTANT via video conferencing 3.2 SITE INVESTIGATION 3.2.1 BORINGS The CONSULTANT shall request in-house files and existing information from the Washington State Department of Transportation (WSDOT) and the City of Pasco regarding subsurface conditions near the proposed improvements. In-house files will be used to supplement geotechnical explorations and laboratory data, where feasible. SUBCONSULTANT will conduct an initial subsurface exploration program to develop 30 percent level subsurface information for Phase 2A project area outlined in Exhibit 2. (It is anticipated that subsequent round(s) of subsurface explorations will be required as the project progre sses and structure, roadway and drainage facility locations are finalized in order to meet WSDOT exploration program criteria.) The intent of this initial phase of exploration is to assist with feasibility and preliminary design of proposed improvements. Services associated with this task include: • Coordinate field work with the CONSULTANT team, City of Pasco and WSDOT. We will prepare an exploration plan (including temporary traffic control plans) for submittal to WSDOT for review and approval. • Visit the project site to mark boring locations and utility locating areas, in accordance with state regulations. • Contact the one-call utility notification system and coordinate with public utilities during siting of the borings. • Complete a preliminary evaluation of subsurface conditions in the vicinity of the proposed retaining wall locations by drilling three ‘geotech boring s’ as shown above. Each boring will be drill to a depth of approximately 20 feet using hollow-stem auger drilling techniques. o WSDOT requires that retaining wall explorations be completed at the top and bottom of proposed cut walls. However, the final selection of boring locations will be dependent on access. If access to upper wall boring locations is available through easements from adjacent property owners, two of the three retaining wall borings will be completed from approximate ‘top of wall’ grade. If access to all borings must occur from WSDOT right-of-way, all borings will be completed at approximate ‘bottom of wall’ grade which is accessible from I-182. In this instance, supplemental ‘top of wall’ borings will be completed in a subsequent phase. • Complete a preliminary evaluation of subsurface conditions at proposed drainage ditches by drilling two ‘infiltration’ borings as shown above. Each boring will be completed at or near ditch grade and will extend approximately 20 feet. We anticipate these borings will be advanced using truck-mounted hollow-stem auger drilling equipment. • Subcontract a traffic control firm to prepare temporary traffic control plans and provide temporary traffic control services in accordance with approved plans. ASSUMPTIONS Page 100 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 11 • Traffic control will be provided by a specialty traffic control firm under subcontract to the SUBCONSULTANT. • Traffic control will include a limited shoulder closure on I-182. • Permits for drilling on WSDOT ROW will submitted by the City of Pasco and prepared by the CONSULTANT. The SUBCONSULTANT will prepare an exploration plan in support of ROW permit application by others. • The City of Pasco will request a temporary easement to access property on the northwest and southeast end of the existing sound wall. o If a temporary easement is not granted all explorations will be completed off the I-182 shoulder. • Contaminated soil will not be encountered. • Cuttings from drilling activities will be left on undeveloped (unpaved) shoulder or right -of-way adjacent to the site. • Water for infiltration testing will be available from nearby fire hydrants and permits to obt ain water will be provided by the local water purveyor. 3.2.2 INFILTRATION TESTS The SUBCONSULTANT will conduct infiltration testing at each of the proposed ‘infiltration’ borings to provide a preliminary assessment of the hydraulic conductivity and infiltratio n rate of site soils. Testing will be completed in accordance with the WSDOT Highway Runoff Manual (Appendix 4D) and include one of the following: • Borehole test • Laboratory testing 3.2.3 LABORATORY TESTING The SUBCONSULTANT shall complete geotechnical laboratory testing to assess pertinent physical properties of soil encountered. Laboratory testing is anticipated to include (although actual tests will depend on the types of soil encountered in the borings): • Seven (7) grain-size analysis • Two (2) direct shear tests • Two (2) corrosivity tests (pH and resistivity) • Two (2) cation exchange capacity (CEC) and organic matter content determinations to assess stormwater treatment capacity of site soil. 3.2.4 P H ASE 2 A LEVEL ENGINEERING ANALYSES AND RECOMMENDATIONS The SUBCONSULTANT will perform feasibility-level geotechnical engineering analysis and provide the following preliminary recommendations: • Evaluation of the feasibility of stormwater disposal and preliminary recommendations for hydraulic conductivity and/or infiltration rate. The analysis will be completed in accordance with the WSDOT Highway Runoff Manual. Page 101 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 12 • Evaluation of feasible retaining wall options and preliminary geotechnical design parameters. Feasible wall options that will be evaluated include: soil nail walls/ste epened slopes; soil pile walls, mechanically stabilized earth (MSE) walls and structural earth (SE) walls. ASSUMPTIONS • Stormwater management and feasibility will be evaluated using the WSDOT Highway Runoff Manual. • Preliminary retaining wall recommendations will be consistent with the WSDOT Geotechnical Design Manual. • The draft report will be subject to one round of review by the CONSULTANT team, City of Pasco and WSDOT. No additional edits or changes will occur following submittal of the final report. DELIVERABLES • A draft geotechnical report for Phase 2A services including: o A site plan showing exploration locations o Exploration logs o Soil profile drawings o A summary of field and laboratory testing results o Engineering analyses, conclusions and preliminary recommendations • A final geotechnical report for Phase 2A services including mutually agreed upon comments from members of the CONSULTANT design team, the City of Pasco and WSDOT. 4 CIVIL DESIGN (KPFF) 4.1 CIVIL DESIGN PROJECT MANAGEMENT 4.1.1 MONTHLY INVOICING/BUDGET TRACKING The SUBCONSULTANT shall prepare monthly progress reports, in a form approved by the CONSULTANT and the CITY, that outlines in written and graphical forms the survey phase of the work, and the order of performance, in sufficient detail so that the progress of the work can be easily evaluated. These reports shall • Highlight project milestones • Target potential problem areas needing special attention or coordination prior to delays occurring and provide a proposal for addressing problem areas • Outline activities planned for the next period • Compare actual work progress with contractual obligations • Show work complete (%) versus budget expended (%) for major tasks Progress reports shall include current scheduling reports, indicating all progress to date and resources expended. Progress shall be monitored and reported in diagram and quantitative forms Page 102 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 13 to present a clear, concise, and understandable picture of the pr oject status. This update shall also include any changes in schedule, sequence, or resource loading. If any schedule delays have occurred, a plan for bringing the work back on schedule, and back on budget, shall be included. Subconsultant invoices shall be prepared by in a form and detail as approved by the CITY, and submitted to the CONSULTANT on a monthly basis. These shall be supported by detailed record keeping closely tracking the project budget and expenditures. Deliverable(s) • Monthly progress reports, incorporating project schedule revisions as appropriate (electronic copy) • Monthly subconsultant invoices 4.1.2 PROJECT KICK -OFF The SUBCONSULTANT shall prepare for and attend the project kick-off meeting with Pasco. This meeting will be conducted via video conferencing.. The CONSULTANT and CITY will coordinate the meeting and will invite agency staff as needed. Assumptions • Meeting duration will be one hour • Meeting will be held remotely via web-conferencing services Deliverable(s) • Project kick-off meeting attended online by the SUBCONSULTANT 4.1.3 COORDINATION MEETINGS WITH CITY/WSDOT The SUBCONSULTANT shall attend bi-weekly 30-minute coordination meetings with CITY and as needed other project stakeholder staff to provide an update on progress and review field perm itting requirements. Assumptions • Meetings will be attended by the SUBCONSULTANT Project Manager • Meeting durations will be 0.5 hours Deliverable(s) • Attendance at bi-weekly project coordination meetings hosted by the CONSULTANT via video conferencing 4.2 DRAINA GE CONCEPT The SUBCONSULTANT shall review Eastern Washington stormwater codes and develop a conceptual stormwater design for the proposed ramp modifications at I-182 & RD100 shown in Exhibit 1. The Page 103 of 217 I -182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT PHASE 2A • SCOPE OF WORK • OCTOBER 26, 2021 14 effort will include reviewing any available stormwater reports from past WSDOT projects in the vicinity. The geotech testing results from Task 3 will be used to confirm feasibility of roadside stormwater treatment and infiltration. A summary memo and figures will be developed showing the drainage design concept, which can be used for discussions with WSDOT’s hydraulic group. Draft and final hydraulic reports will be prepared with subsequent design phases. ASSUMPTIONS • The soils conditions will allow for stormwater infiltration. This will be confirmed with testing results performed in Task 3. If infiltration is not feasible, a drainage conc ept will be developed utilizing stormwater ponds and/or swales. • The hydraulic report prepared for the RD 100 overcrossing project will be made available by WSDOT • Final hydraulic report will be prepared with Phase 2B DELIVERABLES • Figures showing conceptual drainage design • Summary memo of drainage design investigation 5 STRUCTRUAL DESIGN (KPFF ) Structural design scope will be included in subsequent design phases. 6 TRAF FIC DESIGN – (DKS ) Traffic design scope will be included in subsequent design phases. Page 104 of 217 AGENDA REPORT FOR: City Council October 22, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Steve Worley, Director Public Works SUBJECT: *Resolution - Design Build Institute of America Phase 1 Agreement with T Bailey, Inc. - Water Storage Reservoir Zone 3 Progressive Design Build I. REFERENCE(S): Resolution Design Build Institute of America (DBIA) Phase 1 Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. ______, authorizing the City Manager to execute the Design Build Institute of America Phase 1 Agreement with T Bailey, Inc. for the progressive design build services for the Zone 3 Water Storage Reservoir Project. III. FISCAL IMPACT: DBIA Phase 1 Agreement: $353,601.60 with a 10% contingency allowance reserved in the amount of $35,360.16, creates a maximum not to exceed price for Phase 1 of $388,961.76 (Sales Tax included). This project is funded through a $10M Public Works Board low-interest loan and Water utility Rates. IV. HISTORY AND FACTS BRIEF: distribution and treatment complements The reservoir 3 Zone project improvements already planned and underway for Zone 3 of the City’s domestic water system. These planned improvements include: • West Pasco Water Treatment Plant (WPWTP) Expansion (6 million gallons per day (mgd) to 12 mgd) • Water Transmission Main - WPWTP to Zone 3 Page 105 of 217 All projects identified above will together provide adequate supply, increased reliability, and improved redundancy to existing and new customers in the northern part of the City. The Zone 3 Reservoir project consists of the design and construction of a new 3.5-million-gallon (MG) water storage reservoir to serve and expand the City’s domestic water system. Design and construction of this project will be a collaborative effort between the City and the T Bailey/RH2 Engineering design - build team. The T Bailey/RH2 team was recently determined to be the most qualified Design- Build team to efficiently execute this critical infrastructure project. V. DISCUSSION: The City’s primary objective in utilizing the Design -Build procurement approach is to bring the best available design and construction experience and expertise together to successfully meet the unique challenges presented by this project. The selected Design-Build team is expected to enter into a series of agreements with the City for a final goal of determining a Guaranteed Maximum Price (GMP). The structure of these Design Build Institution of America (DBIA) agreements include a Phase 1 and Phase 2 Scope of Work. Phase 1 (subject to approval in this agenda item) Agreement includes: 1. Site geotechnical investigation and preliminary design task deliverables 2. Design up to the 60% submittal 3. Project schedule development 4. Establish a GMP proposal at Phase 1 conclusion Phase 2 (forthcoming) Agreement includes completion of 100% design and finalized construction documents, construction services, commissioning, testing, and project closeout. The Phase 2 contract terms will be documented for approval under a separate agreement once the established GMP is accepted by the City and the Design-Build team. The planned Notice to Proceed (NTP) for the Phase 1 scope is November 2021. This NTP aligns with the City’s commitment to meeting the key project schedule milestones. Therefore, staff recommends approval of the Phase 1 DBIA agreement with T Bailey, Inc. for the Water Storage Reservoir Zone 3 Progressive Design Build project in the amount of $358,160.00. Page 106 of 217 Resolution – DBIA Agreement with T Bailey, Inc. Water Storage Reservoir Zone 3 Progressive Build Design project - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE THE DESIGN BUILD INSTITUTE OF AMERICA PHASE 1 AGREEMENT WITH T BAILEY, INC. FOR THE PROGRESSIVE DESIGN-BUILD SERVICES FOR THE ZONE 3 WATER STORAGE RESERVOIR PROJECT. WHEREAS, the City of Pasco, Washington requires professional progressive design-build services from a construction company and engineering firm for the Zone 3 Water Storage Reservoir project; and WHEREAS, on June 25, 2021 the City received approval from the State of Washington Capital Project Advisory Review Board, Project Review Committee to utilize the Design-Build alternative contracting procedure for the Zone 3 Water Storage Reservoir project based on meeting criteria established in RCW 39.10.280; and WHEREAS, the City of Pasco published an announcement on June 25 and July 2, 2021, of its Request for Qualifications (RFQ) related to its general need for professional Progressive Design-Build services pursuant to RCW 39.10.300 and 39.10.320 (“DB Delivery Method or DB”); and WHEREAS, the City of Pasco short-listed three qualified respondents from the RFQ process and offered an invitation to submit responses to a Request for Proposals (RFP) and participate in an interview presentation to design and build the Zone 3 Water Storage Reservoir project; and WHEREAS, the City of Pasco reviewed the RFP responses and interviewed the three respondents and determined the T Bailey, Inc./RH2 Engineering team to be the most highly qualified pursuant to RCW 39.80.040; and WHEREAS, the City of Pasco, pursuant to RCW 39.80.050(1), has negotiated a fair and reasonable DBIA Phase 1 Agreement with T Bailey, Inc. based on the estimated value of the services including their scope, complexity, and professional nature; and WHEREAS, the City of Pasco hereby finds that T Bailey, Inc./RH2 Engineering team are the most highly qualified firms to perform the necessary progressive design-build services for the Zone 3 Water Storage Reservoir project, and the negotiated Phase 1 a contract is both fair and reasonable, for an amount not to exceed $358,160.00. Page 107 of 217 Resolution – DBIA Agreement with T Bailey, Inc. Water Storage Reservoir Zone 3 Progressive Build Design project - 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager for the City of Pasco is hereby authorized to execute the DBIA Phase 1 Agreement with T Bailey, Inc., a copy of which is attached hereto, and incorporated herein by 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 November, 2021. _____________________________ Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 108 of 217 PROGRESSIVE DESIGN-BUILD AGREEMENT BETWEEN OWNER AND DESIGN-BUILDER - COST PLUS FEE WITH A GUARANTEED MAXIMUM PRICE Note: This document has been modified from the DBIA Form. A redlined copy will be provided upon request. Document No. 530 Second Edition 2010 © Design-Build Institute of America Washington, DC EXHIBIT A Page 109 of 217 TABLE OF CONTENTS Article Name Page Article 1 Scope of Work ............................................................................................... 1 Article 2 Contract Documents ..................................................................................... 2 Article 3 Interpretation and Intent ............................................................................... 2 Article 4 Ownership of Work Product ......................................................................... 3 Article 5 Contract Time ................................................................................................ 4 Article 6 Contract Price ................................................................................................ 5 Article 7 Procedure for Payment ............................................................................... 17 Article 8 Termination for Convenience ..................................................................... 19 Article 9 Representatives of the Parties ................................................................... 19 Article 10 Bonds and Insurance ................................................................................ 20 Article 11 Other Provisions ....................................................................................... 20 Page 110 of 217 DBIA Document No. 530 Page 1 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © Thaxton Parkinson PLLC Progressive Design-Build Agreement Between Owner and Design-Builder – with Cost Plus Fee and a Guaranteed Maximum Price This document has important legal consequences. Consultation with an attorney is recommended with respect to its completion or modification. This AGREEMENT is made as of the day of in the year of 20 , by and between the following parties, for services in connection with the Project identified below: OWNER: (Name and address) City of Pasco PO Box 293/525 North 3rd Ave Pasco, WA 99301 DESIGN-BUILDER: (Name and address) T BAILEY, INC. 9628 South Marchs Point Rd. Anacortes, WA 98221 PROJECT: (Include Project name and location as it will appear in the Contract Documents) Zone 3 Reservoir Storage Tank In consideration of the mutual covenants and obligations contained herein, Owner and Design-Builder agree as set forth herein. Article 1 Scope of Work 1.1 Design-Builder shall perform all design and construction services, and provide all material, equipment, tools and labor, necessary to complete the Work described in and reasonably inferable from the Contract Documents. Page 111 of 217 DBIA Document No. 530 Page 2 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC Article 2 Contract Documents 2.1 The Contract Documents are comprised of the following: 2.1.1 All written modifications, amendments, minor changes, and Change Orders to this Agreement issued in accordance with DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design-Builder (2010 Edition, as amended) (“General Conditions of Contract”), including but not limited to The GMP Amendment in accordance with Section 6.6 herein, provided such Amendment is executed between the parties. 2.1.2 This Agreement, including all exhibits but excluding the GMP Amendment: .1 Exhibit A: Initial Basis of Design Documents .2 Exhibit B1: Insurance Exhibit – Design-Builder’s Insurance Requirements .3 Exhibit B2: Form of Payment Bond .3 Exhibit B3: Form of Performance Bond .4 Exhibit C: Phase 1 and 2 Scope of Services .5 Exhibit D: Phase 1 Level of Effort .6 Exhibit E: Hourly Rates, Unit Prices, and Allowance Items .6 Exhibit F: Form GMP Amendment .7 Exhibit G: Form Change Orders 2.1.3 The General Conditions of Contract; and 2.1.4 Design Submissions, the Design Log, and the Construction Documents prepared and approved in accordance with Section 2.4 of the General Conditions of Contract, the most recent approved documents governing over previously approved documents. Article 3 Interpretation and Intent 3.1 Design-Builder and Owner, prior to execution of the Agreement, shall carefully review all the Contract Documents, including but not limited to the various documents in the Initial Basis of Design Documents set forth in Exhibit A, and the Phase 1 and 2 Scope of Services set forth in Exhibit C, for any conflicts or ambiguities. Design-Builder and Owner will discuss and resolve any identified conflicts or ambiguities prior to execution of the Agreement. 3.2 The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid conflict, with words and phrases interpreted in a manner consistent with construction and design industry standards. In the event inconsistencies, conflicts, or ambiguities between or among the Contract Documents are discovered after execution of the Agreement or after the parties’ execution of the GMP Amendment, Design-Builder and Owner shall attempt to resolve any ambiguity, conflict or inconsistency informally, recognizing that the Contract Documents shall take precedence in the order in which they are listed in Section 2.1 hereof. (Note, the parties are strongly encouraged to establish in the GMP Exhibit or GMP Proposal (as applicable) the priority of the various documents comprising such exhibit or proposal.) 3.3 Terms, words and phrases used in the Contract Documents, including this Agreement, shall have the meanings given them in the General Conditions of Contract. 3.4 If the Initial Basis of Design Documents contain design or prescriptive specifications the Design- Builder shall be entitled to reasonably rely on the accuracy of the information represented in such design Page 112 of 217 DBIA Document No. 530 Page 3 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC or prescriptive specifications and their compatibility with other information set forth in Initial Basis of Design Documents, including any performance specifications for the purposes of developing the Scope of Services for Phase 1, the Phase 1 Not to Exceed Amount and the Design-Builder’s Fee Percentage. However, during Phase 1, Design-Builder is required to perform an independent evaluation of such design or prescriptive specifications to verify the information provided by the Owner. Further, regardless of the inclusion of design or prescriptive specifications or criteria, Design-Builder shall remain responsible for meeting the performance requirements of the Project, including but not limited to the requirements that the Project meet the Initial and Final Basis of Design Documents as well as all applicable Legal Requirements. Provided Design-Builder complies with other requirements set forth in this Agreement such as those regarding notice of claims to Owner and identification of differing site conditions, Design-Builder shall be entitled to an adjustment in the Scope of Services for Phase 1, the Phase 1 Not to Exceed Amount and/or the Design-Builder’s Fee Percentage, but only to the extent Design-Builder’s cost and/or time of performance have been adversely impacted by such inaccurate design or prescriptive specifications that are inconsistent with meeting the performance requirements. 3.5 The Contract Documents form the entire agreement between Owner and Design-Builder and by incorporation herein are as fully binding on the parties as if repeated herein. No oral representations or other agreements have been made by the parties except as specifically stated in the Contract Documents. 3.6 Design-Builder was selected based in part on the qualifications of the Key Team Members identified in the Design-Builder’s Statement of Qualifications and Proposals. Design-Builder may not substitute the identified Key Team Members without written permission from Owner, such permission shall not be unreasonably withheld. Any substituted Key Team Member must possess the same or better qualifications as the previously approved Key Team Member. Article 4 Ownership of Work Product 4.1 Work Product. All drawings, specifications and other documents and electronic data, including such documents identified in the General Conditions of Contract, furnished by Design-Builder to Owner under this Agreement (“Work Product”) are deemed to be instruments of service and Design-Builder shall retain the ownership and property interests therein, including but not limited to any intellectual property rights, copyrights and/or patents, subject to the provisions set forth in Sections 4.2 through 4.5 below. 4.2 Owner’s Limited License upon Project Completion and Payment in Full to Design-Builder. Upon Owner’s payment in full for all Work performed under the Contract Documents, Design-Builder shall grant Owner a limited license to use the Work Product in connection with Owner’s occupancy of the Project, conditioned on Owner’s express understanding that its alteration of the Work Product without the involvement of Design-Builder is at Owner’s sole risk and without liability or legal exposure to Design- Builder or anyone working by or through Design-Builder, including Design Consultants of any tier (collectively the “Indemnified Parties”), and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 below. 4.3 Owner’s Limited License upon Owner’s Termination for Convenience or Design-Builder’s Election to Terminate. If Owner terminates this Agreement for its convenience as set forth in Article 8 hereof, or if Design-Builder elects to terminate this Agreement in accordance with Section 11.4 of the General Conditions of Contract, Design-Builder shall, upon Owner’s payment in full of the amounts due Design-Builder under the Contract Documents, grant Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, and Owner shall thereafter have the same rights as set forth in Section 4.2 above, conditioned on the following: 4.3.1 Use of the Work Product is at Owner’s sole risk without liability or legal exposure to any Indemnified Party, and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 below, and Page 113 of 217 DBIA Document No. 530 Page 4 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC 4.3.2 Owner shall not be required to pay Design-Builder additional compensation for the right to use the Work Product to complete the Project and subsequently use the Work Product in accordance with Section 4.2 if Owner resumes the Project through its employees, agents, or third parties. 4.4 Owner’s Limited License upon Design-Builder's Default. If this Agreement is terminated due to Design-Builder's default pursuant to Section 11.2 of the General Conditions of Contract, then Design- Builder grants Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, and Owner shall thereafter have the same rights and obligations as set forth in Section 4.2 above. Notwithstanding the preceding sentence, if it is ultimately determined that Design-Builder was not in default, Owner shall be deemed to have terminated the Agreement for convenience, and Design- Builder shall be entitled to the rights and remedies set forth in Section 4.3 above. 4.5 Owner’s Indemnification for Use of Work Product. If Owner is required to indemnify any Indemnified Parties based on the use or alteration of the Work Product under any of the circumstances identified in this Article 4, Owner shall defend, indemnify and hold harmless such Indemnified Parties from and against any and all claims, damages, liabilities, losses and expenses, including attorneys’ fees, arising out of or resulting from the use or alteration of the Work Product. Article 5 Contract Time 5.1 Date of Commencement. The Work shall commence within five (5) days of Design-Builder’s receipt of Owner’s Notice to Proceed (“Date of Commencement”) unless the parties mutually agree otherwise in writing. 5.2 Substantial Completion and Final Completion. 5.2.1 Phase 1 shall be completed no later than June 30, 2022 ("Phase 1 Completion Date"). The parties will establish a date for Substantial Completion of the entire Work (“Scheduled Substantial Completion Date”) in the GMP Amendment. 5.2.2 Interim milestones and/or Substantial Completion of identified portions of the Work (“Scheduled Interim Milestone Dates”) shall be determined during Phase 1: (Insert any interim milestones for portions of the Work with different scheduled dates for Substantial Completion) 5.2.3 Final Completion of the Work or identified portions of the Work shall be achieved as expeditiously as reasonably practicable. Final Completion is the date when all Work is complete pursuant to the definition of Final Completion set forth in Section 1.2.13 of the General Conditions of Contract. 5.2.4 All of the dates set forth in this Article 5 (collectively the “Contract Time(s)”) shall be subject to adjustment in accordance with the General Conditions of Contract. 5.3 Time is of the Essence. Owner and Design-Builder mutually agree that time is of the essence with respect to the dates and times set forth in the Contract Documents. Page 114 of 217 DBIA Document No. 530 Page 5 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC 5.4 Liquidated Damages. Design-Builder understands that if Substantial Completion of the Project or any Interim Milestone Date is not attained by the Scheduled Interim Milestone Date or Substantial Completion Date, Owner will suffer damages which are difficult to determine and accurately specify. Therefore, provided the parties enter into the GMP Amendment, Design-Builder and Owner will establish a liquidated damage rate for delay in the GMP Amendment for each day that Substantial Completion extends beyond any Scheduled Interim Milestone Date and/or the Substantial Completion Date, as applicable. 5.5 Any liquidated damages assessed pursuant to this Agreement for delay damages shall be in lieu of all liability for any and all extra costs, losses, expenses, claims, penalties and any other damages, whether special or consequential, and of whatsoever nature, incurred by Owner which are occasioned by any delay in achieving the Contract Time(s). 5.6 In addition, the parties may establish liquidated damages as a remedy for other breaches of contract or failure to achieve performance standards. Such liquidated damages provisions may be added in the GMP Amendment or by written Change Order. Article 6 Contract Price 6.1 Contract Price. 6.1.1 Owner shall pay Design-Builder in accordance with Article 6 of the General Conditions of Contract a contract price (“Contract Price”) as set forth herein. .1 Subject to the provisions of the Contract Documents, the Owner shall pay Design Builder for each Phase of the Project in accordance with Section 6.6 of the Agreement. Design Builder’s Compensation shall be subject to the Phase 1 NTE and the GMP, as applicable. The Phase 1 NTE, and the GMP, as applicable, shall be the maximum amount that the Design Builder may be compensated for the applicable Contract Phase, as amended pursuant to this Contract. The maximum amount that the Design Builder may be compensated pursuant to this Agreement for any given phase shall also be referred to as the Contract Price (“Contract Price”). The elements of the Design Builder’s Compensation, subject to the Contract Price are set forth herein. If the sum of the Design-Builder’s Compensation is less than the Phase 1 NTE and/or the GMP, as applicable, the savings shall go to the Owner. .2 The parties acknowledge that the scope of work for this Project is not fully developed. The Design-Builder shall develop the Basis of Design Documents and other deliverables in Exhibit C such that the total Compensation to the Design-Builder shall not exceed the GMP set forth herein, unless the parties agree in writing to increase the GMP or the Design-Builder is otherwise entitled to an increase to the GMP pursuant to the terms of the Contract Documents. . 6.2 Design-Builder’s Fee Percentage and Lump Sum Fee. 6.2.1 Design-Builder’s Fee Percentage shall be: Three point seven percent (3.7%) of the Cost of the Work, as adjusted in accordance with Section 6.2.2 below. The Fee Percentage and any Lump Sum Fee shall include the following items, which shall not be charged as a Cost of the Work: .1 All profit of the Design-Builder for this Project; and Page 115 of 217 DBIA Document No. 530 Page 6 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC .2 All regional and home office overhead expenses, including labor and materials, phone, facsimile, postage, internet service, and other incidental office expenses attributed to work on this Project. 6.2.2 Prior to the execution of the GMP Amendment, Design-Builder’s Fee Percentage will only be adjusted pursuant to Section 3.4 of this Agreement. 6.2.3 If the Parties enter into the GMP Amendment, Design-Builder shall be paid a lump sum fee (the “Lump Sum Fee”) determined by multiplying the Fee Percentage by the estimated Cost of the Work included in the GMP Amendment. The estimated Cost of the Work shall include the Lump Sum General Conditions Amount. The Lump Sum Fee will be earned and paid on a monthly basis following execution of the GMP Amendment on a percentage of completion basis, specifically taking into account payments previously made, including during Phase 1. The following costs shall be excluded from the Cost of the Work when calculating the Lump Sum Fee: .1 Owner Directed Allowances, as defined in Section 6.4.1.6; and .2 The Design-Builder’s Contingency as defined in Section 6.4.4.1.b. 6.2.4 The Lump Sum Fee established in the GMP Amendment shall not be modified unless the GMP varies, either upward or downward, by more than five percent (5%) from the GMP set forth in this Agreement (“Original GMP”). .1 If the GMP increases by more than five percent (5%) above the Original GMP, the Lump Sum Fee shall be increased by the amount of the Fee Percentage multiplied by that portion of the Cost of the Work that is in excess of one hundred five percent (105%) of the Cost of the Work set forth in the Original GMP. .2 If the GMP decreases by more than five percent (5%) below the Original GMP, the Lump Sum Fee shall be decreased by the amount of the Fee Percentage multiplied by that portion of the Cost of the Work that is less than ninety-five percent (95%) of the Cost of the Work set forth in the Original GMP. .3 The following costs shall be excluded from the Cost of the Work when calculating adjustments to the Lump Sum Fee: a. Owner Directed Allowances, as defined in Section 6.4.1.6; and ‘ b. The Design Builder’s Contingency as defined in Section 6.4.4.1.b. 6.3 Cost of the Work. The term Cost of the Work shall mean costs reasonably and necessarily incurred by Design-Builder in the proper performance of the Work. Unless included in the Lump Sum General Conditions, the Cost of the Work shall include only the following: 6.3.1 Wages of direct labor costs of employees of Design-Builder performing the Work at the Site or, with Owner’s agreement, at locations off the Site; provided, however, that the costs for those employees of Design-Builder performing design services shall be calculated on the basis of Prevailing market rates for design professionals performing such services or, if applicable, those rates set forth in an exhibit to this Agreement. Wages for those employees performing construction services shall be paid as follows: Basic wages and fringe benefits: The hourly wage (without markup or labor burden) and fringe benefits paid by the Design-Builder as established by the Washington Department of Labor and Industries or contributed to labor trust funds as itemized fringe benefits. Whichever is applicable, not to exceed that specified in the applicable "Intent to Pay Prevailing Wage" for the laborers, apprentices, journeymen, and foremen performing and/or directly supervising the Work on the site. The premium portion of overtime wages is not included unless pre-approved in writing by the Owner. The Design-Builder shall provide to the Owner copies of payroll records, including certified payroll statements for itself and Subcontractors of any tier for the period upon the Owner’s request. Direct labor costs also include direct contributions to the State Page 116 of 217 DBIA Document No. 530 Page 7 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC of Washington as industrial insurance, medical aid, and supplemental pension by class and rates established by the Washington Department of Labor and Industries and contributions required by the Federal Insurance Compensation Act (FICA), the Federal Unemployment Tax Act (FUTA) and the State Unemployment Compensation Act (SUCA). 6.3.2 Wages or salaries of Design-Builder’s supervisory and administrative personnel engaged in the performance of the Work and who are located at the Site or working off-Site to assist in the production or transportation of material and equipment necessary for the Work. 6.3.3 Wages or salaries of Design-Builder’s personnel stationed at Design-Builder’s principal or branch offices, but only to the extent said personnel are approved in advance in writing by the Owner. 6.3.4 Unless included in Lump Sum General Conditions, costs incurred by Design-Builder for employee benefits, premiums, taxes, insurance, contributions and assessments required by law, collective bargaining agreements, or which are customarily paid by Design-Builder, to the extent such costs are based on wages and salaries paid to employees of Design-Builder covered under Sections 6.3.1 through 6.3.3 hereof. 6.3.5 The reasonable portion of the cost of travel, accommodations and meals for Design- Builder’s personnel necessarily and directly incurred in connection with the performance of the Work. Such costs must be approved in writing by Owner in advance. 6.3.6 Payments properly made by Design-Builder to Subcontractors and Design Consultants for performance of portions of the Work, including any insurance and bond premiums incurred by Subcontractors and Design Consultants. The costs for those employees performing design services shall be calculated on the basis of prevailing market rates for design professionals performing such services or, if applicable, those Hourly Rates set forth in Exhibit E. Contracts to Subcontractors and Design-Consultants that are paid on the basis of a Lump Sum must be approved in advance by the Owner, such approval shall not be unreasonably withheld. 6.3.7 Costs, including transportation, inspection, testing, storage and handling, of materials, equipment and supplies incorporated or reasonably used in completing the Work. The material costs shall be based upon the net cost after all discounts or rebates, freight costs, express charges, or special delivery costs, when applicable. No lump sum costs will be allowed except when approved in writing in advance by the Owner. Discounts and rebates based on prompt payment need not be included, however, if the Design-Builder offered but the Owner declined the opportunity to take advantage of such discount or rebate. 6.3.8 Costs (less salvage value) of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by the workers that are not fully consumed in the performance of the Work and which remain the property of Design-Builder, including the costs of transporting, inspecting, testing, handling, installing, maintaining, dismantling and removing such items. 6.3.9 Costs of removal of debris and waste from the Site. 6.3.11 The reasonable costs and expenses incurred in establishing, operating and demobilizing the Site office, including the cost of facsimile transmissions, long-distance telephone calls, postage and express delivery charges, telephone service, photocopying and reasonable petty cash expenses. 6.3.12 Rental charges and the costs of transportation, installation, minor repairs and replacements, dismantling and removal of temporary facilities, machinery, equipment and hand tools not customarily owned by the workers, which are provided by Design-Builder at the Site, whether rented from Design-Builder or others, and incurred in the performance of the Work. The rental charge the applicable rental cost as established by the lower of the local prevailing rate Page 117 of 217 DBIA Document No. 530 Page 8 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC published in the Rental Rate Blue Book by Data Quest. San Jose. California, as modified by the AGC/WSDOT agreement or the actual rate paid to an unrelated third party as evidenced by rental receipts. Rates and quantities of equipment rented that exceed the local fair market rental costs shall be subject to the Owner’s prior written approval. Total rental charges for equipment or tools shall not exceed 75% of the fair market purchase value of the equipment or the tool. Actual, reasonable mobilization costs are permitted if the equipment is brought to the site solely for the change in the Work. The rental rates are the maximum rates allowable for equipment of modern design and in good working condition and include full compensation for furnishing all fuel, oil, lubrication, repairs, maintenance, and insurance. When rental rates payable do not include fuel, lubrication, maintenance, and servicing, as defined as operating costs in the Blue Book, such operating costs shall be reimbursed based on actual costs. Equipment not of modern design and/or not in good working condition will have lower rates. Hourly, weekly, and/or monthly rates, as appropriate, will be applied to yield the lowest total cost. The rate for equipment necessarily standing by for future use (and standing by for no longer than two (2) weeks) on the changed Work shall be 50% of the rate established above. The total cost of rental allowed shall not exceed the cost of purchasing the equipment outright. If equipment is required for which a rental rate is not established by The Rental Rate Blue Book, an agreed rental rate shall be established for the equipment, which rate and use must be approved by the Owner prior to performing the Work. 6.3.12 Premiums for insurance and bonds required by this Agreement or the performance of the Work. 6.3.13 All fuel and utility costs incurred in the performance of the Work. 6.3.14 Sales, use or similar taxes, tariffs or duties incurred in the performance of the Work, with the exception of Washington State Sales Tax, which shall be paid outside the Phase 1 NTE or GMP. 6.3.15 Costs for permits, royalties, licenses, tests and inspections incurred by Design-Builder as a requirement of the Contract Documents. 6.3.16 The cost of defending suits or claims for infringement of patent rights arising from the use of a particular design, process, or product required by Owner, paying legal judgments against Design-Builder resulting from such suits or claims, and paying settlements made with Owner’s consent. 6.3.17 Costs incurred in preventing damage, injury or loss in case of an emergency affecting the safety of persons and property. 6.3.19 Accounting and data processing costs related to the Work. 6.3.20 Fees paid by the Design-Builder for the approval of Statements of Intent to Pay Prevailing Wages and certification of Affidavits of Wages Paid by the industrial statistician of the State Department of Labor and Industries. The Design-Builder will remain responsible for the actual submittal of the documents to the industrial statistician. In order to receive this reimbursement the Design-Builder will be required to submit to Owner, a list of its subcontractors at all tiers and have their Statements of Intent to Pay Prevailing Wages on file with the Owner. 6.3.21 Unit Prices established by the parties in Exhibit E. 6.3.22 Other costs reasonably and properly incurred in the performance of the Work to the extent approved in writing by Owner and not included in the Design-Builder’s Contingency, Design Builder’s Fee Percentage, the Lump Sum Fee, or the Lump Sum General Conditions. Page 118 of 217 DBIA Document No. 530 Page 9 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC 6.4 Other Methods of Compensation Within the Phase 1 NTE or the GMP, the parties may agree to the following methods of pricing Design-Builder’s Compensation 6.4.1 Allowance Items and Allowance Values. .1 Any and all Allowance Items, as well as their corresponding Allowance Values, are set forth in Exhibit E or the GMP Amendment and are included within any established NTE and the GMP, as applicable. .2 Design-Builder and Owner have worked together to review the Allowance Items and Allowance Values based on design information then available to determine that the Allowance Values constitute reasonable estimates for the Allowance Items. Design-Builder and Owner will continue working closely together during the preparation of the design to develop Construction Documents consistent with the Allowance Values. Nothing herein is intended in any way to constitute a guarantee by Design-Builder that the Allowance Item in question can be performed for the Allowance Value. .3 No work shall be performed on any Allowance Item without Design-Builder first obtaining in writing advanced authorization to proceed from Owner. Owner agrees that if Design-Builder is not provided written authorization to proceed on an Allowance Item by the date set forth in the Project schedule, due to no fault of Design-Builder, Design-Builder may be entitled to an adjustment of the Contract Time(s) and Contract Price. .4 The Allowance Value for an Allowance Item includes the direct cost of labor, materials, equipment, transportation, taxes and insurance directly associated with the applicable Allowance Item. With the exception of Owner Directed Allowances, all other costs, including design fees, Design-Builder’s overall project management and fixed general conditions costs, overhead and fee, are deemed to be included in the original Contract Price, and are not subject to adjustment, regardless of the actual amount of the Allowance Item. .5 Whenever the actual costs for an Allowance Item is more than or less than the stated Allowance Value, the Contract Price shall be adjusted accordingly by Change Order, subject to Section 6.4.1.4; however, Design-Builder must provide written notice of the difference between the actual cost and the Allowance Value pursuant to the Changes provisions in the General Conditions. The amount of the Change Order shall reflect the difference between actual costs incurred by Design- Builder for the particular Allowance Item and the Allowance Value. .6 The Owner and the Design Builder may designate certain Allowances as “Owner Directed Allowances.” Design Builder shall be compensated for Owner Directed Allowances for the Cost of the Work associated with such allowances plus the Fee Percentage. Items designated as “Owner Directed Allowances” shall not be included in the calculation to determine the Lump Sum Fee. 6.4.2 Not To Exceed Sums .1 The Owner and Design Builder may establish Not to Exceed (“NTE”) Sums for specific scopes of the Work. Any such NTE Sum will be negotiated between the Owner and Design-Builder. The NTE Sum agreed upon by the Parties shall be incorporated into the GMP Amendment or a Change Order, and the parties shall include the following information: Page 119 of 217 DBIA Document No. 530 Page 10 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC a. A specific description of the Scope of the Work that is subject to the NTE Sum; b. An updated Schedule of Values that incorporates the NTE Sum; and c. Any milestone dates associated with the scope of the Work associated with the NTE Sum. .2 For each scope of work for which a NTE Sum has been established, the Design- Builder shall be reimbursed for the scope of the Work as a Cost of the Work; however, Design-Builder’s compensation shall not exceed the NTE Sum without a written Change Order. .3 Design-Builder shall not request reimbursement for costs that are within the scope of the NTE Sum unless those costs are identified in the Payment Application as subject to the NTE Sum. Except as allowed in Section 6.4.4.1.b, costs that are within the scope of the NTE Sum that are in excess of the NTE Sum shall be the sole responsibility of the Design-Builder. .4 NTE Sums may only be modified by Change Order pursuant to the General Conditions. 6.4.3 Lump Sums .1 The Owner and Design-Builder may establish Lump Sums for specific scopes of the Work. Any such Lump Sum will be negotiated between the Owner and Design- Builder. The Lump Sum agreed upon by the Parties shall be incorporated into the GMP Amendment or a Change Order, and the parties shall include the following information: a. A specific description of the Scope of the Work that is subject to the Lump Sum; b. An updated Schedule of Values that incorporates the Lump Sum; and c. Any milestone dates associated with the scope of the Work associated with the Lump Sum. .2 For each scope of work for which a Lump Sum has been established, the Design- Builder shall be compensated pursuant to the Schedule of Values set forth above based on the percentage of the Scope of the Work subject to the Lump Sum that has been completed. .3 Design-Builder shall not request reimbursement for costs that are within the scope of the Lump Sum unless those costs are identified in the Payment Application as subject to the Lump Sum. Except as allowed in Section 6.4.4.1.b, costs that are within the scope of the Lump Sum that are in excess of the Lump Sum shall be the sole responsibility of the Design-Builder. .4 Lump Sums may only be modified via Change Order pursuant to the General Conditions 6.4.4 Contingencies Page 120 of 217 DBIA Document No. 530 Page 11 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC .1 The Parties shall establish, as part of any NTE and the GMP, the following Contingencies which are available for Design-Builder’s exclusive use for the below described unanticipated costs it has incurred that are not the basis for a Change Order under the Contract Documents (collectively “Contingency Items”). Continency Items include the costs described below, which are subject to written approval by the Owner. The Owner may, in its discretion, approve other costs that may be reimbursed under a Contingency; however, in no case shall the Design- Builder be entitled to use the Contingency for payment of Liquidated Damages that it may be assessed pursuant to this Agreement. (a) Cost of the Work Contingency. The Cost of the Work Contingency is reimbursed as a Cost of the Work. The Cost of the Work Contingency is available to the Design-Builder for the following items: (i) Trade buy-out differentials; (ii) Escalation of materials; and (iii) Other direct Costs of the Work that are not included in the Design- Builder’s Contingency, but only with the prior written consent of the Owner. (b) Design-Builder’s Contingency. The Design-Builder’s Contingency is available to the Design-Builder for items that are not excluded by Section 6.5 hereof and include but are not limited to the following items: (i) Overtime or acceleration; (ii) Costs incurred by Design-Builder in repairing or correcting defective, damaged or nonconforming Work (excluding any warranty or corrective Work performed after Substantial Completion), provided that such Work was beyond the reasonable control of Design-Builder, or caused by the ordinary mistakes or inadvertence, and not the negligence, of Design-Builder or those working by or through Design-Builder. If the costs associated with such Work are recoverable from insurance, Subcontractors or Design Consultants, Design-Builder shall exercise its best efforts to obtain recovery from the appropriate source and provide a credit to Owner if recovery is obtained; (iii) Legal costs, court costs and costs of mediation and arbitration reasonably arising from Design-Builder’s performance of the Work, provided such costs do not arise from disputes between Owner and Design-Builder; (iv) Subcontractor or other tier defaults to the extent not compensated by any surety or bond; or (v) Costs that are in excess of an NTE Sum or Lump Sum. .2 The Design-Builder shall be reimbursed for Contingency Items in the same manner as set forth in Section 6.3 of the Agreement; however, Design-Builder’s compensation for Contingency Items shall not cumulatively exceed the amount set forth as the Design-Builder’s Contingency in the applicable NTE or GMP without a written Change Order. Design-Builder shall not be entitled to any Fee Percentage for items reimbursed under Section 6.4.4.1.b, the Design-Builder’s Contingency. Further, the amounts included in the Design-Builder’s Contingency set forth in Page 121 of 217 DBIA Document No. 530 Page 12 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC Section 6.4.4.1.b shall be excluded from the calculation set forth in Section 6.2.3 to establish the Lump Sum Fee and the calculation set forth in Section 6.2.4 to determine whether the GMP has changed. .3 Prior to the final accounting, the Contingencies are not available to Owner for any reason, including, but not limited to changes in scope or any other item which would enable Design-Builder to increase an NTE or GMP under the Contract Documents. .4 Design-Builder shall provide Owner notice of all anticipated charges against the Contingencies and shall provide Owner as part of the monthly status report required by the General Conditions of Contract an accounting of the Contingency, including all reasonably foreseen uses or potential uses of the Contingency in the upcoming three (3) months. Design-Builder agrees that with respect to any expenditure from a Contingency relating to a Subcontractor default or an event for which insurance or bond may provide reimbursement, Design-Builder will in good faith exercise reasonable steps to obtain performance from the Subcontractor and/or recovery from any surety or insurance company. Design-Builder agrees that if Design-Builder is subsequently reimbursed for said costs, then said recovery will be credited back to the Contingency. 6.4.5 Lump Sum General Conditions Costs .1 If the Parties enter into the GMP Amendment, the Parties shall establish an amount for the Lump Sum General Conditions Costs. The parties shall determine the portions of the Cost of the Work set forth in Section 6.3 that are included in the Lump Sum General Conditions Costs, and the parties shall include a description of such costs in the GMP Amendment. Unless the parties agree in writing otherwise, the costs that will be included in the Lump Sum General Conditions Costs are as follows: a. Wages or salaries of Design-Builder’s supervisory and administrative personnel engaged in the performance of the Work and who are located at the Site or working off-Site to assist in the production or transportation of material and equipment necessary for the Work. Specifically, the following personnel are included in the Lump Sum General Conditions Amount: i. Project Executive ii. Project Manger iii. Superintendent and/or Construction Manager iv. Quality Control Manager v. Project Field Engineer and/or Design Manager vi. Project Controls vii. Project Scheduler viii. Safety Manager b. Wages or salaries of Design Builder’s personnel stationed at Design Builder’s principal or branch offices, but only to the extent said personnel are approved in advance of the performance of the Work in writing by the Owner. c. Costs incurred by Design-Builder for employee benefits, premiums, taxes, insurance, contributions and assessments required by law, collective bargaining agreements, or which are customarily paid by Design-Builder, to Page 122 of 217 DBIA Document No. 530 Page 13 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC the extent such costs are based on wages and salaries paid to employees of Design-Builder covered under this Section. d. The reasonable portion of the cost of travel, accommodations and meals for Design-Builder’s personnel necessarily and directly incurred in connection with the performance of the Work and with the written consent of the Owner as set forth below: i. Meals and Incidental Expenses: Meals and incidental expenses will be limited to the Federal Per Diem rate for meals and incidentals established for the location where lodging is obtained. Federal Per Diem guidelines which includes the meal breakdown and Federal Per Diem rates for other locations can be found at www.gsa.gov. ii. Lodging: Lodging will be billed at cost, including applicable taxes, not to exceed the Federal Per Diem maximum lodging rate for the location where the work is being performed. iii. Travel: Air travel (at coach class or equivalent), airport shuttles, etc. billed at cost. Ground transportation by privately owned vehicle, if utilized, billed at the Internal Revenue Service mileage rate for privately owned vehicles in effect at the time of travel. Expenses for a rental car (including fuel), at cost, in the ratio of one mid-size class rental car for each three Contractor’s personnel directly engaged in performance of the work at the prevailing rental rates then in effect. Rental car options such as refueling fees, GPS, collision & liability insurance, etc. will not be reimbursed by the Owner unless such options are approved in advance by the Owner’s Representative. Appropriate insurance coverage should be included in the Contractor’s insurance policies. e. The reasonable costs and expenses incurred in establishing, operating and demobilizing the Site office, including the cost of facsimile transmissions, long-distance telephone calls, postage and express delivery charges, telephone service, photocopying and reasonable petty cash expenses. f. Premiums for insurance and bonds required specifically by this Agreement or the performance of the Work by the Design Builder. g. Accounting and data processing costs related to the Work. h. Fees paid by the Design-Builder for the approval of Statements of Intent to Pay Prevailing Wages and certification of Affidavits of Wages Paid by the industrial statistician of the State Department of Labor and Industries. The Design-Builder will remain responsible for the actual submittal of the documents to the industrial statistician and the determination of the locality of the work to confirm the appropriate classification of work. In order to receive this reimbursement, the Design-Builder will be required to submit to Owner a list of its subcontractors at all tiers and have their Statements of Intent to Pay Prevailing Wages on file with the Owner. i. General administrative costs not specifically listed in this subsection, including but not limited to the following: i. Shop Drawing Reproduction ii. Construction Schedule & Updates iii. Safety/Security iv. Field Office Set-up (mobilization/demobilization) v. Office Supplies Page 123 of 217 DBIA Document No. 530 Page 14 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC vi. Telephone System vii. Telephone Service Charge viii. Computer Network/System Set-up ix. Courier Service x. Postage (Fed-X, USPS) xi. Furniture/Equipment xii. Office Cleaning xiii. Project Superintendent Vehicle xiv. Computers xv. Copy Machine xvi. Temporary Electric Hook-up/Removal xvii. Temporary Electric Material xviii. Project Signage xix. Temporary Water Hook-up/Removal xx. Drinking Water & Supplies xxi. Chemical Toilets xxii. O&M Manuals xxiii. Project Record Documents xxiv. Field Engineering/Layout Survey .2 For the Costs of the Work that are included in the Lump Sum General Conditions Costs, the Design-Builder shall no longer be entitled to be reimbursed for such costs as part of the Cost of the Work, and the Design Builder’s sole compensation for the costs set forth in the identified General Conditions shall be through the Lump Sum General Conditions Costs. .3 The Owner shall have the right to examine the back-up documentation establishing the Lump Sum General Conditions Costs, including but not limited to all estimates, proposals, contracts and other financial documentation on a transparent basis. .4 The Lump Sum General Conditions Costs shall only be modified if the Design- Builder is entitled to compensation for a delay pursuant to Section 8.2 of the General Conditions. Any modification to the Lump Sum General Conditions Costs shall be calculated as follows: a. The Design Builder shall be entitled to receive a liquidated daily rate for extended General Conditions Costs (“Design-Builder’s Delay Rate”) for each day that the Contract Time is extended pursuant to Section 8.2 of the General Conditions. i. The Design-Builder’s Delay Rate shall be calculated by dividing the Lump Sum General Conditions Costs by the number of days in the Contract Time set forth in the GMP Amendment for Phase 2. ii. Then, the Design-Builder’s Delay Rate is multiplied by the number of days that the Contract Time is extended for Design-Builder’s Delay, subject to a determination of entitlement pursuant to Article 8 of the General Conditions. Page 124 of 217 DBIA Document No. 530 Page 15 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC iii. The result from the Design-Builder’s Delay Rate multiplied by the number of days is the Extended General Conditions Costs which shall be added to the Lump Sum General Conditions Costs by Change Order and paid to the Design Builder pursuant to the Schedule of Values, subject to a determination of entitlement pursuant to Article 8 of the General Conditions. b. The Design-Builder’s Delay Rate shall not apply to delays occurring after Substantial Completion is achieved. c. The Parties agree that determining the Design Builder’s damages for delay in Phase 2 would be extremely difficult or impracticable to determine and that the Design-Builder’s Delay Rate, as calculated in this Section 6.4.5.4, is a reasonable estimate of and reasonable sum for such damages; therefore, the Design-Builder’s Delay Rate shall be payable to the Design Builder as liquidated damages and not as a penalty. 6.4.6 Unit Prices and Hourly Rates .1 Any Unit Prices and Hourly Rates shall be agreed upon in writing and set forth in Exhibit E to the Agreement. Design-Builder shall not charge more than a specified Unit Price or Hourly Rate than the amount set forth in Exhibit E, as modified through the Contract Documents. .2 Once established, Unit Prices and Hourly Rates shall not be subject to audit and may only be changed by Change Order. .3 Design-Builder must maintain a record of the number of Unit Prices and Hours billed using Hourly Rates for review by Owner. 6.5 Non-Reimbursable Costs. 6.5.1 The following shall not be deemed as costs of the Work: .1 Compensation for Design-Builder’s personnel stationed at Design-Builder’s principal or branch offices, except as expressly provided for in Section 6.3 hereof. .2 Overhead and general expenses, except as provided for in Section 6.3 hereof. .3 The cost of Design-Builder’s capital used in the performance of the Work. .4 Costs that would cause the Phase 1 NTE, the GMP, the Cost of the Work Contingency, or the Design Builder’s Contingency as adjusted in accordance with the Contract Documents, to be exceeded. 6.6 Project Phases. 6.6.1 Phase 1 .1 Compensation. During Phase 1, the Design Builder shall be compensated for the following: a. The Cost of the Work set forth in Section 6.3; b. Design-Builder’s Fee Percentage set forth in Section 6.2.1 multiplied by the Cost of the Work; and Page 125 of 217 DBIA Document No. 530 Page 16 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC d. Contingency Items charged under Section 6.4.4.1.b. .2 Phase 1 Not to Exceed Amount. Design-Builder guarantees that its Compensation during Phase 1 shall not exceed the Phase 1 Not to Exceed Amount (“Phase 1 NTE”) of three hundred and eighty eight thousand nine hundred and sixty one dollars and seventy six cents ($388,961.76). Documents used as a basis for the Phase 1 NTE shall be identified in Exhibit D to this Agreement. Design-Builder agrees that it will be responsible for paying all costs of completing the Work which exceed the Phase 1 NTE, as adjusted in accordance with the Contract Documents. .3 The Phase 1 NTE includes the Cost of the Work in the amount of three hundred twenty five thousand six hundred Dollars ($325,600.00) and the Design-Builder’s Contingency in the amount of thirty two thousand five hundred and sixty Dollars ($32,560.00) plus 8.6% WSST in the amount of thirty thousand eight hundred and one dollars and seventy six cents ($30,801.76). .4 The Phase 1 Completion Date is June 30, 2022. .5 GMP Proposal. At the conclusion of Phase 1, Design-Builder shall submit a GMP Proposal to Owner which shall include the deliverables set forth in Exhibit C, unless the parties mutually agree otherwise. .6 Submission of the GMP Proposal. Submission of the GMP Proposal constitutes Design-Builder’s representation and agreement that it has adequately investigated the site and the project parameters, the Project is adequately defined, the Final Basis of Design Documents are sufficiently defined to provide an accurate GMP and Project Schedule, and subject to the assumptions and clarifications in the GMP Proposal, the Project is sufficiently clear and understandable for the Design-Builder to perform the Work in accordance with the Contract Documents for an amount that will not exceed the Original GMP. .7 Review and Adjustment to GMP Proposal. After submission of the GMP Proposal, Design-Builder and Owner shall meet to discuss and review the GMP Proposal. If Owner has any comments regarding the GMP Proposal or finds any inconsistencies or inaccuracies in the information presented, it shall promptly give written notice to Design-Builder of such comments or findings. If appropriate, Design-Builder shall, upon receipt of Owner’s notice, make appropriate adjustments to the GMP Proposal. To assist in the Owner’s review of the GMP Proposal, the Design Builder shall, upon the Owner’s Request, provide all information, including but not limited to all data, reports, cost analysis, pricing, designs and specifications on which the Design Builder relied or used as a basis for the GMP Proposal. The Owner shall make its best efforts to review any revised GMP Proposal within thirty (30) days of receipt of the revised GMP Proposal. .8 Acceptance of GMP Proposal. If Owner accepts the GMP Proposal, as may be amended by Design-Builder, the terms of the GMP Proposal shall be set forth in the GMP Amendment. At the Owner’s option, the GMP may be converted into a Lump Sum. .9 Failure to Accept the GMP Proposal. If Owner rejects the GMP Proposal, the GMP Proposal shall be deemed withdrawn and of no effect. In such event, Owner and Design-Builder shall meet and confer as to how the Project will proceed, with Owner having the following options: a. Owner may suggest modifications to the GMP Proposal, whereupon, if such modifications are accepted in writing by Design-Builder, the GMP Page 126 of 217 DBIA Document No. 530 Page 17 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC Proposal shall be deemed accepted and the parties shall proceed in accordance with Section 6.6.1.5 above; b. Owner may terminate this Agreement for convenience in accordance with Article 8 hereof. .10 Performance of Work After Submission of GMP Proposal. The Design-Builder shall not perform any Work after the submission of the GMP Proposal until the Owner has approved and signed the GMP Amendment unless the Design-Builder obtains the Owner’s prior, written consent to perform such Work and only to the extent that such Work is expressly described in writing in such written consent. If Design-Builder performs such Work, Design-Builder shall be compensated pursuant to the written approval. 6.6.2 Phase 2 Post GMP Period. .1 Compensation. During Phase 2, the Design Builder shall be compensated for the following, all subject to the GMP: a. The Cost of the Work set forth in Section 6.3; b. Design-Builder’s Lump Sum Fee established pursuant to Section 6.2.3; c. Any Lump Sums established pursuant to Section 6.4.3; d. Contingency Items charged under Section 6.4.4.1.b; and e. Design-Builder’s Lump Sum General Conditions Costs established pursuant to Section 6.4.5. .2 GMP The total compensation paid to Design-Builder for this Project shall not exceed the GMP, as amended pursuant to this Contract. By agreeing to the GMP Amendment, the Design-Builder understands that if the Work cannot be completed for the agreed GMP, any additional costs shall be the responsibility of the Design- Builder, and Design-Builder hereby assumes liability for such costs without reimbursement by the Owner. .3 If the parties decide to convert the GMP into a Lump Sum, Design-Builder shall be compensated pursuant to Section 6.4.3 of the Agreement. 6.6.3 Savings. .1 If the sum of the actual Cost of the Work and Design-Builder’s Fee (and, if applicable, any prices established under Section 6.1.2 hereof) is less than the GMP, as such GMP may have been adjusted over the course of the Project, the difference (“Savings”) shall go to 100% to the Owner. Article 7 Procedure for Payment 7.1 Progress Payments. Page 127 of 217 DBIA Document No. 530 Page 18 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC 7.1.1 Design-Builder shall submit to Owner on the twenty fifth (25th) day of each month, beginning with the first month after the Date of Commencement, Design-Builder’s Application for Payment in accordance with Article 6 of the General Conditions of Contract. 7.1.2 Owner shall make payment within thirty (30) days after Owner’s receipt of each properly submitted and accurate Application for Payment in accordance with Article 6 of the General Conditions of Contract, but in each case less the total of payments previously made, and less amounts properly withheld under Section 6.3 of the General Conditions of Contract. 7.1.3 If Design-Builder’s Fee under Section 6.2 hereof is a lump sum amount, the amount of Design-Builder’s Fee to be included in Design-Builder’s monthly Application for Payment and paid by Owner shall be proportional to the percentage of the Work completed, less payments previously made on account of Design-Builder’s Fee. 7.2 Retainage on Progress Payments. 7.2.1 The Owner will withhold retainage pursuant to RCW Chapter 60.28, and Owner shall release such retainage pursuant to state law. Pursuant to RCW Chapter 60.28, the Design-Builder may submit a bond in lieu of the retainage that the Owner would otherwise keep under the terms of this Contract and pursuant to applicable law. Any such bond submitted in lieu of retainage must be on the form approved by the Owner. In the event the Design-Builder fails at any time to pay persons protected under RCW Chapter 60.28 or the Owner has reason to believe that the Owner or other obligee under the bond has a claim against the retainage or for other good cause, the Owner may, at its option, resume retaining from monies earned by the Design-Builder in such amount as it would otherwise be entitled to retain had the bond not been accepted. Notwithstanding the Owner’s resuming such retainage, said bond shall remain in full force and effect to the extent of its penal sum, limited to the amount of retainage released to the Design-Builder. After the Design-Builder has paid protected persons or otherwise cured any default, the Owner may, at its option, again release retainage pursuant to the terms of the bond. 7.3 Final Payment. Design-Builder shall submit its Final Application for Payment to Owner in accordance with Section 6.7 of the General Conditions of Contract. Owner shall make payment on Design- Builder’s properly submitted and accurate Final Application for Payment pursuant and subject to RCW Chapter 60.28 and RCW Chapter 39.08 and all applicable laws and regulations, provided that Design- Builder has satisfied the requirements for final payment set forth in Section 6.7.2 of the General Conditions of Contract. 7.4 Interest. Payments due and unpaid by Owner to Design-Builder, whether progress payments or final payment, shall bear interest commencing five (5) days after payment is due at the statutory rate of interest per month until paid. 7.5 Record Keeping and Finance Controls. Design-Builder acknowledges that this Agreement is to be administered on an “open book” arrangement relative to Costs of the Work. Design-Builder shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management, using accounting and control systems in accordance with generally accepted accounting principles and as may be provided in the Contract Documents. During the performance of the Work and for a period of six (6) years after Final Payment, Owner, Owner’s accountants, the Washington State Department of Commerce and the Washington State Auditor shall be afforded access to, and the right to audit from time-to-time, upon reasonable notice, Design-Builder’s records, books, correspondence, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to the Work, all of which Design-Builder shall preserve for a period of six (6) years after Final Payment. Such inspection shall take place at Design-Builder’s offices during normal business hours unless another location and time is agreed to by the parties. Any multipliers or markups agreed to by the Owner and Design-Builder as part of this Agreement are only subject to audit to confirm that such multiplier or markup has been charged in accordance with this Agreement, with the composition of such multiplier or markup not being subject to audit. Page 128 of 217 DBIA Document No. 530 Page 19 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC Article 8 Termination for Convenience 8.1 Upon ten (10) days’ written notice to Design-Builder, Owner may, for its convenience and without cause, elect to terminate all or a portion of this Agreement. In such event, Owner shall pay Design-Builder for allowable costs and subject to any established Not to Exceed Amount or GMP: 8.1.1 All Work executed and for proven loss, cost or expense in connection with the Work; 8.1.2 The reasonable costs and expenses attributable to such termination, including demobilization costs and amounts due in settlement of terminated contracts with Subcontractors and Design Consultants; and 8.1.3 The fair and reasonable sums for overhead and profit on the sum of items 8.1.1 and 8.1.2 above based on Design-Builder’s Fee Percentage, provided, however, if a Lump Sum Fee has been established, then the Lump Sum Fee shall only be modified pursuant to Section 6.2.4 above. 8.2 If Owner terminates this Agreement pursuant to Section 8.1 above and proceeds to design and construct the Project through its employees, agents or third parties, Owner’s rights to use the Work Product shall be as set forth in Section 4.3 hereof. Such rights may not be transferred or assigned to others without Design-Builder’s express written consent and such third parties’ agreement to the terms of Article 4. Article 9 Representatives of the Parties 9.1 Owner’s Representatives. 9.1.1 Owner designates the individual listed below as its Senior Representative (“Owner Senior Representative”), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers) Steve Worley Public Works Director 525 N. 3rd Avenue PO Box 293 Pasco, WA 99301 (509) 543-5738 9.1.2 Owner designates the individual listed below as its Owner’s Representative, which individual has the authority and responsibility set forth in Section 3.4 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers) Becky Blankenship Vice President 719 2nd Ave, Suite 1075 Seattle, WA 98104 (509) 385-9127 Page 129 of 217 DBIA Document No. 530 Page 20 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC 9.2 Design-Builder’s Representatives. 9.2.1 Design-Builder designates the individual listed below as its Senior Representative (“Design-Builder’s Senior Representative”), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers) Gene Tanaka President 9628 South Marchs Point Rd. Anacortes, WA 98221 360-299-8222, cell 206-310-1725 gtanaka@tbailey.com 9.2.2 Design-Builder designates the individual listed below as its Design-Builder’s Representative, which individual has the authority and responsibility set forth in Section 2.1.1 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers) Russ Gibbs President 9628 South Marchs Point Rd. Anacortes, WA 98221 360-630-5830, cell 360-202-4185 rgibbs@tbailey.com Article 10 Bonds and Insurance 10.1 Insurance. Design-Builder and Owner shall procure the insurance coverages set forth in the Insurance Exhibit attached hereto and in accordance with Article 5 of the General Conditions of Contract. 10.2 Bonds and Other Performance Security. Upon execution of this Agreement, Design-Builder shall provide a performance and a labor and material bond, pursuant to RCW Chapter 39.08, equal to one hundred percent (100%) of the Phase 1 NTE in the form set forth as Exhibit B. Upon execution of the GMP Amendment, Design-Builder shall provide a performance and labor and material bond, pursuant to RCW Chapter 39.08, equal to one hundred percent (100%) of the GMP in the form set forth as Exhibit B. 10.3 All bonds furnished by Design-Builder shall be from a surety that is qualified and registered to conduct business in the state of Washington. Article 11 Other Provisions 11.1 Other provisions, if any, are as follows: (Insert any additional provisions) 11.2 Wages. 11.2.1 The Design-Builder and its Subcontractors, Consultants and Sub-Consultants shall pay all laborers, workmen, or mechanics employed by it or them in the performance of this Contract the applicable state prevailing wage rate required by (RCW Chapter 39.12). The schedule of prevailing wage rates for the locality or localities of the Work is determined by the Industrial Statistician of the Page 130 of 217 DBIA Document No. 530 Page 21 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC Department of Labor and Industries. It is the Design-Builder’s responsibility to verify the applicable prevailing wage rate. 11.2.2 Before payment is made by the Owner to the Design-Builder for any Work performed by Design-Builder or any Subcontractor, Consultant or Sub-Consultant whose work is included in the application for payment, the Design-Builder shall submit, or shall have previously submitted, to the Owner a Statement of Intent to Pay Prevailing Wages, approved by the Department of Labor and Industries, certifying the rate of hourly wage paid and to be paid each classification of employees, laborers, workers, or mechanics employed for the Work by Design-Builder, Consultants, Subcontractors and Sub-Consultants. The "Statement of Intent to Pay Prevailing Wages" shall include: (1) the Design-Builder’s registration number; and (2) the prevailing wages under RCW 39.12.020 and the number of workers in each classification. Each voucher claim submitted by the Design-Builder for payment on a project estimate shall state that the prevailing wages have been paid in accordance with the prefiled statement or statements of intent to pay prevailing wages on file with the Owner. 11.2.3 Design-Builder and each Subcontractor required to pay the prevailing rate of wages shall post in a location readily visible at the job site: (1) a copy of a "Statement of Intent to Pay Prevailing Wages" approved by the industrial statistician of the Department of Labor and Industries; and (2) the address and telephone number of the industrial statistician of the Depart- ment of Labor and Industries where a complaint or inquiry concerning prevailing wages may be made. 11.2.4 Prior to release of the retainage, the Design-Builder shall submit to the Owner an Affidavit of Wages Paid, approved by the Department of Labor and Industries, for the Design-Builder and every Consultant, Sub-Consultant, and Subcontractor of any tier that performed work on the Project. 11.2.5 Disputes regarding prevailing wage rates shall be referred for arbitration to the Director of the Department of Labor and Industries. The arbitration decision shall be final and conclusive and binding on all parties involved in the dispute as provided for by RCW 39.12.060. 11.2.6 Each Application for Payment submitted by Design-Builder shall state that prevailing wages have been paid in accordance with the prefiled statement(s) of intent, as approved. Copied of the approved intent statements(s) shall be posted on the job site with the address and telephone number of the Industrial Statistician of the Department of Labor and Industries where a complaint or inquiry concerning prevailing wages may be made. 11.2.7 In compliance with WAC Chapter 296-127, Design-Builder shall pay to the Department of Labor and Industries the currently established fee(s) for each statement of intent and/or affidavit of wages paid submitted to the Department of Labor and Industries for certification. 11.2.8 Consistent with WAC 296-127-320, the Design-Builder and all Consultants, Sub- Consultants and Subcontractors shall submit a certified copy of payroll records if requested. 11.3 Hours of Labor 11.3.1 Design-Builder shall comply with applicable provisions of RCW Chapter 49.28, and such provisions are incorporated herein by reference. 11.3.2 RCW 49.28 permits entities performing public works contracts to enter into an agreement where employees work up to ten hours in a calendar day, subject to the provisions of the statute. No such agreement may provide that employees work ten-hour days for more than four calendar days a week. Any such agreement is subject to approval by the employees. 11.4 Off Site Prefabricated Items. Page 131 of 217 DBIA Document No. 530 Page 22 Standard Form of Agreement Between Owner and Design-Builder - Cost Plus Fee with an Option for a GMP © 2010 Design-Build Institute of America; changes © 2021 Thaxton Parkinson PLLC 11.4.1 In accordance with RCW 39.04.370, Design-Builder shall submit certain information about off-site, prefabricated, nonstandard, project specific items produced under the terms of the contract and produced outside Washington as a part of the Affidavit of Wages Paid form filed with the Washington State Department of Labor and Industries. 11.5 Nondiscrimination. 11.5.1 No individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this contract because of age, sex, race, color, religion, creed, marital status, familial status, sexual orientation, national origin, honorably discharged veteran or military status, the presence of any sensory, mental or physical disability, or use of a service animal by a person with disabilities. The Design-Builder agrees to comply with and to require that all subcontractors comply with, Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act, as applicable. 11.6 Business Registration Requirement. 11.6.1 Design-Builder represents and warrants that it and all of its subconsultants, subcontractors and suppliers of every tier are properly licensed to perform the work for which they are contracted and have all applicable business licenses, including but not limited to any licenses or registrations required by the State of Washington and any other regulatory authority. Design- Builder shall be solely responsible for contacting the State of Washington Business License Services at http://bls.dor.wa.gov or 1-800-451-7985 to obtain a business registration. 11.7 Contractor’s Registration Requirement. 11.7.1 Design-Builder represents and warrants that it and all of its subconsultants, subcontractors and suppliers performing construction work are properly licensed pursuant to RCW 39.06.010. 11.8 Apprenticeship Program 11.8.1 Design-Builder shall comply with the apprenticeship program set forth in RCW 39.04.320, as applicable. Not applicable this project. 11.9 Submission of Information to CPARB and OMWBE Design-Builder and its subcontractors and designers shall submit to Owner project information required by the Washington State Capital Projects Advisory Board pursuant to RCW 39.10. Specifically, and without limitation, Design-Builder must report to Owner its utilization of businesses certified by OMWBE and veteran certified businesses. Minimum participation requirements do not apply to this project. 11.10 Inclusion Plans Design-Builder shall submit to Owner inclusion plans for underutilized form as subcontractors and suppliers including, but not limited to, the office of minority and women’s business enterprises certified businesses, veteran certified businesses, and small businesses as required in Exhibit C. 11.11 No Party is Drafter Each party has had an opportunity to negotiate the provisions of this Agreement and its Exhibits and attachments, and neither party shall be construed as the drafter. Page 132 of 217 Page 133 of 217 9628 South Marchs Point Rd., Anacortes, WA 98221 (360) 293-0682  FAX (360) 293-3893 WWW.TBAILEY.COM City of Pasco Zone 3 Reservoir Storage Tank Contract Exhibit D - Phase 1 Level of Effort In the event of a conflict between Exhibit C Scope of Work and this Exhibit D Phase 1 Level of Effort, the requirements of Exhibit C shall take precedence. Background The City of Pasco (City) needs additional storage in Zone 3 for future development and growth around the area. The City opted to use the Progressive Design Build (PDB) process to construct the proposed improvements. T BAILEY, INC. (TBI) has teamed with RH2 Engineering, Inc. (RH2) to form the PDB Team (DBT). RH2 will provide design consultant services as a subconsultant to TBI. This Scope of Work outlines the tasks, assumptions, and deliverables anticipated for Phase 1 of the project. Phase 1 is understood to be defined as the work necessary to establish the Guaranteed Maximum Price (GMP), which is anticipated to occur at or before the 60-percent design milestone, which coincides with submittal of the building permit. General Assumptions The scope of the improvements and corresponding level of effort and schedule for some tasks is highly dependent upon which site is selected. To establish a basis for estimating the level of effort and schedule for Phase 1 services, our PDB Team has assumed the following: • It is assumed the proposed site will be located in the property north of the Columbia River Elementary School. The City will have acquired or will be close to acquiring this property after the Notice to Proceed. Analysis of other proposed tank properties is not included as part of this Scope of Work, with the exception of the City's West Pasco Water Treatment Plant site, which will be reviewed and considered as part of the alternatives analysis performed as part of subtask 2.1. • Gravity and/or pumping system alternatives will be limited to the tasks detailed in this Scope of Work. • The Engineering Design (Task 3) assumes the chosen alternative will be a standpipe/skirted elevated tank. If a ground-level tank and a closed zone booster pump station (BPS) are chosen, an amendment will be required. • The project schedule is highly dependent on the site selection and easement acquisition. Property and/or easement acquisition is outside of the DBT’s control. • Draft and final deliverables will be provided in electronic format (PDF) unless otherwise noted. It is anticipated that Phase 1 of the project will be completed in June 2022. • The City will procure and provide all property and easement-related documentation for the selected project site, and will provide the applicable documentation to the team for incorporation into the design. Task 1 – Project Management Objective: Provide project management for the duration of the project. Approach: • Project Coordination and Management – Provide project coordination and management for the activities performed by in-house personnel and subconsultants during the project. Page 134 of 217 City of Pasco Page 2 Zone 3 Reservoir Storage Tank Contract Exhibit D - Phase 1 Level of Effort This includes management and monitoring of labor utilization, project schedule, and project budget on a regular basis. • Prepare subconsultant agreements and prepare and submit invoices electronically on a monthly basis. A monthly progress report shall be submitted with monthly invoice with a summary of work completed to date including any out of scope items required or issues of concern. • Develop Project Execution Plan – Develop a Project Execution Plan summarizing project goals and objectives; the project approach; project organization requirements; defining resources/staffing plan, responsibilities, contacts, and communication plan; the team’s quality assurance and quality control (QA/QC) plan; project budget, schedule, and work breakdown structure; financial tracking procedures; and scope change management process. The project delivery schedule shall be in coordination with the City’s requirements and milestone dates. • Submit the draft Project Execution Plan to the City, respond to City comments, revise the Project Execution Plan based on the comments received, and submit a final version. • Communication, Workshops, and Status Updates – Facilitate a project kickoff meeting to discuss project goals, objectives, and critical success factors, scope and schedule, and City preferences for planned improvements; collect missing information; confirm lines of communication; and review draft Project Execution Plan. • The project kickoff meeting occurred on 10/26/21. Included an agenda and draft Project Execution Plan. • No more than two (2) workshops will be held in person at a mutually agreed upon location to review and collaborate on the alternatives analysis, and to review comments on the Basis of Design Report, 30-percent, 60-percent, and GMP deliverables. • Schedule Management – Maintain a two (2) week look ahead and overall project schedule, developed using Microsoft Project. Schedules shall be submitted electronically. The overall project schedule shall be updated monthly to show progress and reflect information currently available. • Perform Internal QA/QC – Perform internal quality management reviews of progress to ensure the project objectives are achieved. This includes providing a QA/QC officer who is responsible for implementation of the QA/QC plan and documentation of QA/QC activities; providing quality management guidance documents for performance of QA/QC; performing internal review on calculations and deliverables; recording and submitting internal review and comments with draft deliverables; and utilizing staff to provide independent quality control on calculations and deliverables. Assumptions: Workshops and kickoff meeting will be held in City Hall. RH2 Richland staff will attend the workshops in person, while supporting RH2 staff will attend remotely. TBI staff will attend in person or remotely as needed. Provided by City: Submittal review and attendance at workshops. DBT Deliverables: • Monthly progress reports and invoices. • Project Execution Plan. • Attendance at project kickoff meeting and two (2) in-person workshops. • Project schedule that will be actively maintained. • QA/QC documentation. Page 135 of 217 City of Pasco Page 3 Zone 3 Reservoir Storage Tank Contract Exhibit D - Phase 1 Level of Effort Task 2 – Preliminary Engineering Design Objective: Analyze alternatives and perform engineering analysis necessary for DBT and City to make an informed decision on the best alternative to proceed into design. Approach: • Perform Alternatives Analysis – Evaluate the Zone 3 reservoir and possible BPS alternatives using mutually agreed upon selection criteria. Attend a maximum of two (2) alternatives analysis workshops at City Hall to rank the alternatives and criteria for the project. The alternatives analysis will be documented in the meeting minutes and Basis of Design Report. • Hydraulic Evaluation – Evaluate the City’s existing system to identify capacity issues and the impact of additional storage provided by the proposed reservoir. Alternatives to address potential issues will be developed and evaluated for implementation. The PDB Team will draft a Hydraulic Evaluation technical memorandum to document the results of the evaluation. • Geotechnical Investigations and Report – Hire a geotechnical boring and soils testing company, conduct field exploration of the selected sites, and submit a draft Geotechnical Engineering Report. Review available geologic, groundwater, and geotechnical information for the reservoir sites. Prepare a geotechnical investigation and geohazard assessment report for the reservoir sites. Describe subgrade conditions, soil bearing capacities and earth pressures, and seismic and slope stability conditions. Prepare recommendations for reservoir subgrade preparation and backfilling of water supply trenches for the reservoir excavation. Include other pertinent information required for the design and construction of the proposed below- and above-grade structures. • Conduct Cultural Survey – Prepare EZ-1 form, coordinate with the Publics Works Board (PWB) Tribal Liaison, coordinate with a subconsultant to conduct a literature review and prepare an Inadvertent Discovery Plan (IDP), and perform field investigations as determined by PWB. • Prepare Basis of Design Report – Summarize criteria, standards, guidance, and/or codes governing the design in the Basis of Design Report. Develop a checklist for presenting design choices to the City. Meet with the City at City Hall to review and identify design criteria that will be used to guide the design of the proposed reservoir. This will include confirming operational capacity, operating levels, overflow evaluation, and floor elevations. Establish structural design criteria using geology and location to identify seismic design parameters per United States Geological Survey (USGS) data and to design snow and wind loads, soil loads, live loads, unbalanced load criteria, and load combinations. Assumptions: • DBT will schedule and facilitate one (1) meeting with the City to present deliverables and one (1) review meeting to discuss comments and responses. • Upon review of deliverables, the City will provide consolidated review comments. • DBT will review submittal comments and record responses and/or actions required to resolve items in the comments. • DBT will rely on the accuracy and completeness of information, data, and materials generated or produced by the City, or others in relation to this Scope of Work. Provided by the City: • Attendance at two (2) alternatives analysis workshops. • Attendance at review meeting. Page 136 of 217 City of Pasco Page 4 Zone 3 Reservoir Storage Tank Contract Exhibit D - Phase 1 Level of Effort • Review comments. DBT Deliverables: • Attendance at and meeting minutes for two (2) alternatives analysis workshops. • Hydraulic Evaluation technical memorandum (included in Basis of Design Report). • Alternatives Analysis technical memorandum (included in Basis of Design Report). • Geotechnical investigation and geohazard assessment report for reservoir sites. • Cultural Review Report and IDP. • Basis of Design Report. Task 3 – Engineering Design Objective: Prepare the 60-percent design of the project. Approach: • Conduct Survey – Subcontract with a surveyor to conduct topographic survey and prepare a survey base map for the project. The survey will include the proposed reservoir site, pump station site (if necessary or different from reservoir site), and transmission main improvements. • Develop 30-Percent Design – Develop the 30-percent design for the project, including plans, list of specifications, and 30-percent construction cost estimate. Specifications will be limited to those necessary to obtain regulatory approval and permits. • Develop 60-Percent Design – Develop the 60-percent design for the project, including plans, specifications, and 60-percent construction cost estimate. • Prepare GMP based on the criteria set after the City decides on which tank alternative is selected. Assumptions: • The design will be in accordance with the International Building Code. Develop structural calculations and detail the foundation, anchor, and piping within the foundation, and the shell and appurtenances of the tank for the Building Permit submittal. • The design will accommodate minimal stormwater improvements. It is assumed the downstream storm system is adequate to convey the stormwater from the proposed reservoir site. An overflow detention pond will be sized to accommodate an overflow event based on the agreed upon overflow sizing calculations with the City. • The design will incorporate driveway improvements necessary for construction access and bringing necessary utilities to the site. • The design will not be required to incorporate hypochlorite boosting at the reservoir. • The survey includes the topographical survey for the proposed property north of the school with only minimal utilities. If the site for the proposed reservoir location changes, additional survey may be needed. Provided by City: Design review comments at 30- and 60-percent submittals. DBT Deliverables: • 30-percent plans, list of specifications, and construction cost estimate. • 60-percent plans, specifications, and construction cost estimate. • Draft and Final GMP. Task 4 – Permitting Objective: Coordinate and obtain the required permits for the project. Approach: • Prepare and Submit Project Report to DOH – Prepare Washington State Department of Health (DOH) Project Report and DOH Project Approval Form. Provide draft to the City Page 137 of 217 City of Pasco Page 5 Zone 3 Reservoir Storage Tank Contract Exhibit D - Phase 1 Level of Effort for review and comment. Revise Project Report and DOH Project Approval Form to address City comments. Submit the final Project Report to DOH. Compose a letter responding to review comments from DOH, if necessary. • Prepare and Submit Construction Documents to DOH – Prepare application with construction documents for DOH as phased submittals. Provide draft application package to the City for review and comment. Revise to address City comments. Submit the finalized construction documents to DOH. Compose a letter responding to review comments from DOH, if necessary. It is assumed that up to three (3) meetings with DOH will be required and will be attended by up to three (3) RH2 staff via Teams or similar video conference platform. • Attend Pre-Application Meeting – Prepare for and attend City’s or Franklin County’s (County) pre-application meeting to discuss the proposed improvements, confirm anticipated local project permits, and discuss submittal processes. It is assumed up to three (3) RH2 staff will attend the pre-application meeting along with City project staff. One (1) meeting with City or County staff is assumed. Final site chosen may be in Franklin County. • Prepare SEPA Checklist and CUP Submittal – Coordinate with City Planning staff regarding State Environmental Policy Act (SEPA) requirements, Conditional Use Permit (CUP) requirements, submittal, etc. Prepare a draft SEPA Checklist application and draft CUP package for City or County staff review. Finalize the SEPA Checklist and CUP package based on City/County staff comments, and provide to the City or County Planning staff for review, publication, and decision components. Assumptions: • The City will be the applicant for permit applications and DBT will act as the City’s agent. • The City will pay all permit fees directly. • Prepare and submit building permit • Acceptance of permit submittals is beyond the control of DBT and the City, and no date is warranted or implied for DOH response or acceptance. • There will be only one (1) round of review comments from DOH for each submittal. • Impacts to critical areas will be avoided. As such, this Scope of Work does not include development of mitigation plans. Should it be necessary, mitigation measures will be included in a mutually agreed upon amendment to this Scope of Work. • No Washington State Department of Ecology National Pollutant Discharge Elimination System permits are necessary. • Right-of-Way permits, if determined to be needed for construction, will be applied for and obtained by the City directly. • No federal permitting, approvals, or coordination is needed for the project. • Submitting the SEPA Checklist and CUP package is included in this Scope of Work, but responding to City and/or County comments related to the subsequent agency or public comments is outside this Scope of Work. • Submittal of construction documents to DOH will occur in Phase 2. Provided by City: • Payment of all permit application fees. • Attendance at City/County pre-application meeting. • Attendance at up to three (3) virtual meetings with DOH. • Review and comment on draft permit application packages. • Assistance with City permit submittals/staff coordination, as needed, to facilitate permit submittals and reviews. Page 138 of 217 City of Pasco Page 6 Zone 3 Reservoir Storage Tank Contract Exhibit D - Phase 1 Level of Effort DBT Deliverables: • Attendance at up to three (3) virtual meetings with DOH. • Electronic PDF of the draft, and electronic and two (2) hard copies of the final Project Report and application for DOH submittal. • Electronic PDF and up to two (2) hard copies each of letter response to DOH comments on the Project Report and construction documents, if needed. • Electronic PDF of draft and final pre-application meeting package, and attendance by up to three (3) RH2 staff at the pre-application meeting with City. • Four (4) hard copies, one (1) PDF, and one (1) Word file of SEPA documentation and CUP applications, including duplicates for the City. Page 139 of 217 9628 South Marchs Point Rd., Anacortes, WA 98221 (360) 293-0682  FAX (360) 293-3893 WWW.TBAILEY.COM City of Pasco Zone 3 Reservoir Storage Tank Contract Exhibit E - Hourly Rates, Unit Prices, and Allowance Items T BAILEY, INC. proposes to complete the Phase 1 scope of work as detailed in Exhibit D Phase 1 Level of Effort for a base lump sum price of $325,600.00. We suggest the City reserve a 10% contingency allowance in the amount of $32,560.00. This creates a combined price for Phase 1 of $358,160.00 plus Washington State Sales Tax at 8.6% would equal $30,801.76 for a total Not To Exceed Price for Phase 1 of $388,961.76. Monthly progress billings will be submitted based on a percent complete of the base lump sum Phase 1 amount of $325,600.00 plus 8.6% WSST itemized and added to each billing. Any additional unforeseen work will be described in detail and billed against the contingency amount. Page 140 of 217 AGENDA REPORT FOR: City Council October 19, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Steve Worley, Director Public Works SUBJECT: *Resolution - Bid Rejection - Citywide Traffic Signal Improvements Phase 2 Project I. REFERENCE(S): Resolution Bid Tabs II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. _______, rejecting all bids fo r Bid No.17014 for the Citywide Traffic Signal Improvements Phase 2 project. III. FISCAL IMPACT: This project is funded through a combination of federal, state and local funds. Federal and State Grants (STP, HIP and TAP) $ 2,703,647 Fund 120 - Arterial Street $ 51,428 Fund 125 - Traffic Impact $ 637,932 Total Project Cost: $ 3,393,007 No fiscal impact is anticipated from this recommended action. IV. HISTORY AND FACTS BRIEF: The Citywide Traffic Signal Improvements Project began in 2013 and was divided into two phases by City Council action at the January 4, 2016 meeting. This split was requested by the Benton Franklin Council of Governments (BFCOG) due to Surface Transportation Program funding considerations regarding the construction timeline and right-of-way needs. Phase 1 consisted of 11 signalized intersections having no right-of-way needs and was constructed in 2018. Phase 2 includes the remaining 21 signalized intersections that required right-of-way acquisition. Page 141 of 217 A request for bids was issued on September 17, 2021 (Bid No. 17014) for the Citywide Traffic Signal Improvements Phase 2 Project. Two (2) bids were received and opened on October 19, 2021. The lowest responsiv e bidder was Apollo, Inc. with a bid of $5,599,569.50. This is considerably higher than the remaining project budget of $3,393,007 and the Engineer’s final design estimate of $4,669,267.00. The highest bidder was Pavement Surface Controls with a bid of $5,928,941.49. City staff reviewed the bid tabulation and did not find any irregularities. It was observed that unit prices were consistently higher than the engineer’s estimate, particularly for equipment. After careful review, staff has determined that awarding the contract is not in the City’s best interest and recommends rejecting all bids. City staff will work collaboratively with funding agencies to revisit the project and possibly reduce the scope of work to fit within the available funding. This would allow for rebidding the project at a future date. V. DISCUSSION: Staff recommends approval of the Resolution rejecting all bids for the Citywide Traffic Signal Improvements Phase 2 Project and authorize the City Manager to issue a new call for bids at a later date, with possible modifications to the bid package. Page 142 of 217 Resolution –Bid Rejection - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, REJECTING ALL BIDS FOR BID NO. 17014 FOR THE CITYWIDE TRAFFIC SIGNAL IMPROVEMENTS PHASE 2 PROJECT. WHEREAS, the City of Pasco has an identified capital improvement public works project described as the Citywide Traffic Signal Improvements Phase 2 Project; and WHEREAS, the City solicited sealed public bids for this capital improvement public works project, identified as Bid No. 17014 Citywide Traffic Signal Improvements Phase 2 Project; and WHEREAS, on October 19, 2021 at 2:00 p.m., two (2) bids were received and opened by the City; and WHEREAS, the two (2) bids that were received are considerably higher than the available budget for this project, the lowest being Apollo, Inc at $5,599,569.50 and the highest being Pavement Surface Control at $5,928,941.49, with an Engineers estimate at $4,669,267.00; and WHEREAS, after careful review, the City has determined that none of the bids were in the City’s best interest to award; and WHEREAS, pursuant to RCW 35.23.352(1), the City Council may, by Resolution, reject all bids and authorize further calls for bids in the same manner as the original call. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That all bids received for Bid No. 17014: The Citywide Traffic Signal Improvements Phase 2 Project are hereby rejected, and the City Manager is hereby authorized to revise and make further calls for bids in the same manner as the original call for this project; and Be It Further Resolved that this Resolution shall take effect and be in full force immediately upon passage by the City Council. Page 143 of 217 Resolution –Bid Rejection - 2 PASSED BY the City Council of the City of Pasco, Washington this _____ day of November 2021. Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 144 of 217 Bid Tabulations - Traffic Signal Improvements, City Wide Phase 2 Project #17014 Bid Date: October 19, 2021 Contractor:Contractor: Engineer's Estimate Item No.Description Quant Unit Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount 1 Mobilization 1 LS 397,200.00$ $ 397,200.00 $ 363,000.00 363,000.00$ 339,498.50$ 339,498.50$ 2 ADA Features Surveying 1 LS $8,190 $ 8,190.00 $ 16,000.00 16,000.00$ 40,250.00$ 40,250.00$ 3 SPCC Plan 1 LS $2,000 $ 2,000.00 $ 900.00 900.00$ 1,000.00$ 1,000.00$ 4 Type B Progress Schedule 1 LS $4,500 $ 4,500.00 $ 8,000.00 8,000.00$ 2,500.00$ 2,500.00$ 5 Project Temporary Traffic Control, Min. Bid $1,000.00 1 LS $350,000 $ 350,000.00 $ 110,000.00 110,000.00$ 278,598.55$ 278,598.55$ 6 Clearing And Grubbing 1 LS $12,750 $ 12,750.00 $ 75,000.00 75,000.00$ 36,753.86$ 36,753.86$ 7 Removal Of Structures And Obstructions 1 LS $21,250 $ 21,250.00 $ 62,000.00 62,000.00$ 34,965.56$ 34,965.56$ 8 Roadside Cleanup 1 EST 17,500.00$ $ 17,500.00 $ 17,500.00 17,500.00$ 17,500.00$ 17,500.00$ 9 Removing Paint Line 510 LF $1.50 $ 765.00 $ 1.65 841.50$ 4.00$ 2,040.00$ 10 Removing Plastic Line 1620 LF $2.10 $ 3,402.00 $ 3.60 5,832.00$ 3.00$ 4,860.00$ 11 Removing Plasic Crosswalk Line 10020 SF $3.00 $ 30,060.00 $ 2.75 27,555.00$ 6.00$ 60,120.00$ 12 Removing Plastic Traffic Marking 6 EA $100 $ 600.00 $ 165.00 990.00$ 150.00$ 900.00$ 13 Removing Chain Link Fence 100 LF $10 $ 1,000.00 $ 13.25 1,325.00$ 38.10$ 3,810.00$ 14 Roadway Excavation Incl. Haul 640 CY $30 $ 19,200.00 $ 58.50 37,440.00$ 181.17$ 115,948.80$ 15 Sawcutting 4630 LF $5.00 $ 23,150.00 $ 6.65 30,789.50$ 6.35$ 29,400.50$ 16 Crushed Surfacing Base Course 550 TON $45 $ 24,750.00 $ 57.00 31,350.00$ 139.04$ 76,472.00$ 17 Crushed Surfacing Top Course 520 TON $45 $ 23,400.00 $ 58.00 30,160.00$ 146.17$ 76,008.40$ 18 HMA for Pavement Repair HMA Class Cl. 3/8 In. PG 64S-22 200 TON $145 $ 29,000.00 $ 130.00 26,000.00$ 600.00$ 120,000.00$ 19 Cold Mix Asphalt 70 TON $175 $ 12,250.00 $ 220.00 15,400.00$ 650.00$ 45,500.00$ 20 Rectangular Frame and Herringbone Grate 6 EA $1,000 $ 6,000.00 $ 1,550.00 9,300.00$ 469.49$ 2,816.94$ 21 Rectangular Frame and ADA Grate 12 EA $1,000 $ 12,000.00 $ 1,550.00 18,600.00$ 469.70$ 5,636.40$ 22 Locking Solid Metal Cover and Frame for Catch Basin 1 EA $1,000 $ 1,000.00 $ 1,900.00 1,900.00$ 1,287.02$ 1,287.02$ 23 Concrete Inlet Incl. Rectangular Frame and Herringbone Grate 1 EA $2,350 $ 2,350.00 $ 3,200.00 3,200.00$ 1,768.47$ 1,768.47$ 24 Solid Wall PVC Storm Sewer Pipe 8 In. Diam. 10 LF $60 $ 600.00 $ 133.00 1,330.00$ 725.13$ 7,251.30$ 25 Connection to Drainage Structure 1 EA $1,250 $ 1,250.00 $ 1,450.00 1,450.00$ 3,950.18$ 3,950.18$ 26 Adjust Manhole 3 EA $1,050 $ 3,150.00 $ 790.00 2,370.00$ 682.48$ 2,047.44$ 27 Adjust Catch Basin 8 EA $950 $ 7,600.00 $ 440.00 3,520.00$ 651.84$ 5,214.72$ 28 Adjust Valve Box 5 EA $650 $ 3,250.00 $ 420.00 2,100.00$ 307.12$ 1,535.60$ 29 Inlet Protection 31 EA $100 $ 3,100.00 $ 100.00 3,100.00$ 85.00$ 2,635.00$ 30 Erosion Control and Water Pollution Prevention 1 LS $21,250 $ 21,250.00 $ 1,200.00 1,200.00$ 16,500.00$ 16,500.00$ 31 ESC Lead 12 DAY $150 $ 1,800.00 $ 110.00 1,320.00$ 400.00$ 4,800.00$ 32 Cement Conc. Sidewalk 570 SY $85 $ 48,450.00 $ 118.00 67,260.00$ 105.00$ 59,850.00$ 33 Cement Conc. Traffic Curb & Gutter 3350 LF $35 $ 117,250.00 $ 54.25 181,737.50$ 47.25$ 158,287.50$ 34 Cement Conc. Traffic Curb 100 LF $35 $ 3,500.00 $ 59.00 5,900.00$ 47.25$ 4,725.00$ 35 Cement Conc. Pedestrian Curb 2460 LF $45 $ 110,700.00 $ 49.00 120,540.00$ 42.00$ 103,320.00$ 36 Cement Conc. Curb Ramp Type A Parallel 37 EA $2,750 $ 101,750.00 $ 2,150.00 79,550.00$ 1,890.00$ 69,930.00$ 37 Cement Conc. Curb Ramp Type B Parallel 1 EA $2,750 $ 2,750.00 $ 2,030.00 2,030.00$ 1,785.00$ 1,785.00$ 38 Cement Conc. Curb Ramp Type A Perpendicular 29 EA $2,750 $ 79,750.00 $ 2,030.00 58,870.00$ 1,785.00$ 51,765.00$ 39 Cement Conc. Curb Ramp Type B Perpendicular 12 EA $2,750 $ 33,000.00 $ 2,030.00 24,360.00$ 1,785.00$ 21,420.00$ 40 Cement Conc. Curb Ramp Type Hybrid Perpendicular 23 EA $2,750 $ 63,250.00 $ 2,150.00 49,450.00$ 1,890.00$ 43,470.00$ 41 Cement Conc. Curb Ramp Type A Single Direction 6 EA $2,750 $ 16,500.00 $ 2,030.00 12,180.00$ 1,785.00$ 10,710.00$ 42 Cement Conc. Curb Ramp Type B Single Direction 1 EA $2,750 $ 2,750.00 $ 2,030.00 2,030.00$ 1,785.00$ 1,785.00$ 43 Cement Conc. Curb Ramp Type Combination 17 EA $2,750 $ 46,750.00 $ 2,150.00 36,550.00$ 1,890.00$ 32,130.00$ 44 Detectable Warning Surface 40 SF $35 $ 1,400.00 $ 55.00 2,200.00$ 52.50$ 2,100.00$ 45 Extruded Curb 40 LF $20 $ 800.00 $ 58.00 2,320.00$ 47.25$ 1,890.00$ 46 Cement Conc. Driveway Entrance Type 1 5 SY $100 $ 500.00 $ 188.00 940.00$ 157.50$ 787.50$ 47 Adjust Junction Box 7 EA $750 $ 5,250.00 $ 218.00 1,526.00$ 207.90$ 1,455.30$ 48 Signal Modifications Complete, W Court Street and N 22nd Avenue 1 LS $146,010 $ 146,010.00 $ 179,000.00 179,000.00$ 170,628.15$ 170,628.15$ 49 Signal Modifications Complete, W Court Street and Road 32 1 LS $119,850 $ 119,850.00 $ 193,000.00 193,000.00$ 183,601.95$ 183,601.95$ 50 Signal Modifications Complete, W Court Street and Road 34 1 LS $130,660 $ 130,660.00 $ 200,000.00 200,000.00$ 190,680.00$ 190,680.00$ 51 Signal Modifications Complete, W Court Street and Road 36 1 LS $153,890 $ 153,890.00 $ 196,000.00 196,000.00$ 187,218.15$ 187,218.15$ 52 Signal Modifications Complete, W Court Street and Road 40 1 LS $145,970 $ 145,970.00 $ 188,000.00 188,000.00$ 179,458.65$ 179,458.65$ 53 Signal Modifications Complete, W Sylvester Street and N 4th Avenue 1 LS $127,400 $ 127,400.00 $ 191,000.00 191,000.00$ 182,117.25$ 182,117.25$ 54 Signal Modifications Complete, W Sylvester Street and N 5th Avenue 1 LS $131,370 $ 131,370.00 $ 191,000.00 191,000.00$ 182,882.70$ 182,882.70$ 55 Signal Modifications Complete, W Sylvester Street and N 10th Avenue 1 LS $144,990 $ 144,990.00 $ 196,000.00 196,000.00$ 187,602.45$ 187,602.45$ 56 Signal Modifications Complete, W Sylvester Street and N 14th Avenue 1 LS $124,060 $ 124,060.00 $ 192,000.00 192,000.00$ 182,626.50$ 182,626.50$ 57 Signal Modifications Complete, W Sylvester Street and N 28th Avenue 1 LS $155,190 $ 155,190.00 $ 220,000.00 220,000.00$ 209,876.10$ 209,876.10$ 58 Signal Modifications Complete, W Clark Street and N 10th Avenue 1 LS $127,700 $ 127,700.00 $ 164,000.00 164,000.00$ 157,092.60$ 157,092.60$ 59 Signal Modifications Complete, W Lewis Street and N 3rd Avenue 1 LS $139,260 $ 139,260.00 $ 181,000.00 181,000.00$ 172,482.45$ 172,482.45$ 60 Signal Modifications Complete, W Lewis Street and N 28th Avenue 1 LS $139,770 $ 139,770.00 $ 196,000.00 196,000.00$ 186,737.25$ 186,737.25$ 61 Signal Modifications Complete, W "A" Street and S 10th Avenue 1 LS $137,260 $ 137,260.00 $ 204,000.00 204,000.00$ 194,721.45$ 194,721.45$ 62 Signal Modifications Complete, W "A" Street and S 4th Avenue 1 LS $128,980 $ 128,980.00 $ 190,000.00 190,000.00$ 181,087.20$ 181,087.20$ 63 Signal Modifications Complete, W Ainsworth Street and S 10th Avenue 1 LS $159,960 $ 159,960.00 $ 188,000.00 188,000.00$ 178,990.35$ 178,990.35$ 64 Signal Modifications Complete, Sandifur Parkway and Broadmoor Blvd 1 LS $100,430 $ 100,430.00 $ 141,000.00 141,000.00$ 134,244.60$ 134,244.60$ 65 Signal Modifications Complete, Chapel Hill Blvd and Broadmoor Blvd 1 LS $139,390 $ 139,390.00 $ 184,000.00 184,000.00$ 175,548.45$ 175,548.45$ 66 Signal Modifications Complete, W Argent Street and Road 84 1 LS $134,380 $ 134,380.00 $ 181,000.00 181,000.00$ 172,098.15$ 172,098.15$ 67 Signal Modifications Complete, W Argent Street and Road 80 1 LS $115,140 $ 115,140.00 $ 171,000.00 171,000.00$ 163,171.05$ 163,171.05$ 68 Signal Modifications Complete, W Argent Street and Road 68 1 LS $113,720 $ 113,720.00 $ 140,000.00 140,000.00$ 133,276.50$ 133,276.50$ 69 Paint Line 290 LF $2.00 $ 580.00 $ 2.75 797.50$ 5.00$ 1,450.00$ 70 Plastic Stop Line 1550 LF $18 $ 27,900.00 $ 8.65 13,407.50$ 15.00$ 23,250.00$ 71 Plastic Crosswalk Line 10110 SF $10 $ 101,100.00 $ 6.80 68,748.00$ 12.00$ 121,320.00$ 72 Plastic Traffic Arrow 6 EA $250 $ 1,500.00 $ 130.00 780.00$ 300.00$ 1,800.00$ 73 Chain Link Fence Type 4 100 LF $75 $ 7,500.00 $ 33.00 3,300.00$ 100.00$ 10,000.00$ 74 End, Gate, Corner, and Pull Post for Chain Link Fence 16 EA $290 $ 4,640.00 $ 820.00 13,120.00$ 250.00$ 4,000.00$ 75 Permanent Signing 1 LS $2,000 $ 2,000.00 $ 16,000.00 16,000.00$ 115,000.00$ 115,000.00$ 76 Record Drawings, Min. Bid $ 5,000.00 1 LS $5,000 $ 5,000.00 $ 5,000.00 5,000.00$ 6,500.00$ 6,500.00$ 77 Roadway Surveying 1 LS $25,000 $ 25,000.00 $ 35,500.00 35,500.00$ 32,500.00$ 32,500.00$ Subtotal:4,669,267.00$ 5,599,569.50$ 5,928,941.49$ Competitive bids were opened on October 19, 2021. All bids have been reviewed by this office, and all unbalanced bids checked.TOTAL:4,669,267.00$ 5,599,569.50$ 5,928,941.49$ ______________ _____________________________________ Date Project Manager Apollo, Inc.Pavement Surface Control Page 145 of 217 AGENDA REPORT FOR: City Council October 27, 2021 TO: Dave Zabell, City Manager City Council Regular Meeting: 11/1/21 FROM: Rick White, Director Community & Economic Development SUBJECT: Danilyuk Short Plat Sewer Service Requirement Appeal (APPL 2021-001) Continued from July 19, 2021 Council Meeting I. REFERENCE(S): Vicinity Map Withdrawal Letter II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to close the Appeal Hearing as the appellant has withdrawn the Appeal. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: Council considered the Appeal at the June 22, July 19, August 2, August 16 and September 20, 2021 Council Meetings. The Hearing was continued to this date by Council Motion. Since the July 19 Council Meeting, staff has explored a number of alternate provisions related to providing sewer service to this subdivision application within the City's Urban Growth Area. An acceptable provision relating to future sewer service once the sewer utility is installed in Road 96 was reached and the appeal is now moot. V. DISCUSSION: The proposed subdivision was modified to include a provision for connection to sanitary sewer in the future pending installation of such in Road 96. This allows Page 146 of 217 the owners to proceed with their project and accomplishes future provision o f sanitary sewer within the Urban Growth Area for subdivided parcels. The appellants have withdrawn their appeal. Page 147 of 217 CHARDONNAYROAD 96BALFLOUR CHELAN W ILL O W WINTHROP WELSH RIES L I N G ELMWOODTWILIGHTM A P L E PRAIRIEMERLOT RED ROAN S U N S E T MANASSASCORONADO FERNWOODMAPLE SYRAHHAYDENSUNSET ROAD 100Fire Station #85 Plat Vicinity Map Item: Appeal - Sewer Waiver Denial Applicant: Tony Danilyuk File #: APPL 2021-001 0 280 560 840 1,100140 Feet Page 148 of 217 From: Tony Dan <tonydan20@yahoo.com> Sent: Thursday, October 28, 2021 4:35 PM To: Rick White <WHITER@pasco-wa.gov> Subject: Re: sewer requirement appeal [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] I Anatoliy Danilyuk and my brother in law Vitaliy Synyuk, would like to withdraw our sewer waiver appeal since we came to acceptable agreement on both ends. Thank you. Sent from my iPhone On Oct 27, 2021, at 11:10 AM, Rick White <WHITER@pasco-wa.gov> wrote: Page 149 of 217 AGENDA REPORT FOR: City Council September 30, 2020 TO: Dave Zabell, City Manager City Council Workshop Meeting: 11/1/21 FROM: Richa Sigdel, Director Finance SUBJECT: 2022 Ad Valorem Tax Levy and General Fund Revenue Review I. REFERENCE(S): Exhibit A - Property Taxes Worksheet 2022 Property Tax Presentation General Fund Revenue Manual Draft 2022 Property Tax Levy Increase Ordinance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Sets the City share of the Property Tax rate. The impact to the General Fund is dependent on the option selected. IV. HISTORY AND FACTS BRIEF: As part of the annual budget process, per RCW 84.55.120, cities are required to conduct a public hearing on General Fund revenue sources for the coming year's budget, including possible increases in property tax revenues. Following the revenue hearing, Council may choose to pass an ordinance at the same meeting authorizing the property tax levy for the ensuing year, consistent with statutory limitations. State statue limits the property tax rate the City can levy to $3.60 per $1,000 of assessed valuation. Other General Fund revenue includes sales tax, fees and charges, utility taxes, fines and forfeitures, and transfers. Property tax, however, requires a public hearing and vote separate from the budget and is the primary focus of this narrative. Page 150 of 217 Revenues generated through the City property tax levy represent a major source of funding for essential government services such as police, fire, parks, community development, finance, administration, as well as a significant portion of streets and other services deemed necessary by the Council through the budget process. In 2001, the voters approved Initiative 747 (I-747) limiting the amount taxing districts could increase the total property tax levy over the previous year by the lesser of 1% or the Implicit Price Deflator (IPD) without voter approval. In November 2007, that initiative was challenged and ruled unconstitutional by the Washington State Supreme Court; the Court's ruling returned the limit to the lesser of 6% or IPD. The Legislature subsequently placed into law those limits suggested by I-747. The current legal limit is the lesser of 1% or IPD, meaning that the City could increase the total property tax levy for 2022 by as much as 1% over 2021. The IPD differs significantly from a regional Consumer Price Index (CPI) in that, unlike the CPI, the IPD is not based on a fixed basket of goods and ser vices in a region. The IPD basket spans the nation and is based on changes from year to year with people's consumption and investment patterns. The IPD figure for the 2022 tax calculation is 3.86%. As final tax levy data has yet to be issued by the Frank lin County Assessor’s Office, including information on any increases to State -assessed utilities, the calculations provided herein are estimates. Furthermore, because the Assessor’s Office is not allowed to set the levy to exceed what is shown in the City’s budget, the information provided for both the estimated calculations and the rounded amount will be utilized for presentation in the budget. During the 2021-2022 biennial budget setting, the long term effects of the pandemic were unclear. Vaccines had not been approved, and the rollout of the immunization schedule was unknown. General fund revenue sources, as well as expenses, were budgeted conservatively with plans to utilize the mid-biennium adjustment as an opportunity to revise when economic conditions were clearer. Council reviews other General Fund revenues that complement the revenues received from property taxes. V. DISCUSSION: CITY PROPERTY TAX LEVY OPTIONS FOR 2022 For 2021, the Franklin County Assessor has provided a preliminary City assessed valuation of $8,025,528,669 , which will be used as the basis to Page 151 of 217 calculate the 2022 property taxes. This amount includes new construction o f $207,945,700 and an estimated State-assessed utility of $100,000. Please refer to Exhibit A for the chart regarding the options below. Option A reflects an estimated increase of $450,223 over the 2021 levy amount. The proposed increase is derived mostly from an increase in assessed valuation due to new construction in 2021. This option forgoes the statutorily allowed 1% increase in the City property tax levy, an increase of $114,499, and instead would bank the capacity for future needs. It is important to consider that once the Council approves the resolution, the City is not part of the process to ensure that its banked capacity remains intact; leaving it vulnerable to any lapse in process or clerical errors. The effect of the new construction adds to the overall assessed valuation of the City, which in turn serves to reduce the levy rate for 2022 by $0.201 from the $1.684 per $1,000 of assessed valuation in 2021 to $1.483 in 2022. Option B depicts the amount of $564,722 the City would collect if the Council chose to adopt the statutorily allowed 1% increase, plus an estimated increase due to new construction and annexation in 2020. This alternative would decrease the levy rate for 2022 by $0.187 per $1,000 of assessed valuation from the $1.684 per $1,000 of assessed valuation in 2021 to $1.497 in 2022. The 2021-2022 mid-biennium budget adjustment was prepared using an estimated property tax levy of $12,000,000 (for 2022). This amount is lower than the estimated tax levy to account for delinquencies. Council has historically based property tax levy decisions on current and future needs. In 2019, the Council chose to use tax levy capacity banked from prior years to fund major capital infrastructure investments like Fire Stations 83 and 84, and the Animal Control Shelter. Whereas in 2020 and 2021, the Council chose to bank the tax levy capacity for future needs. Economic activity for City of Pasco residents did not slow down during the pandemic with exception of the Accommodation and Food Industries sector. This has resulted in a healthy increase in revenue sources - more than anticipated. Council will see proposed amendments reflect this reality, mainly around sales taxes and property sales. City also received American Rescue Plan Act (ARPA) funds and other grants related to City's efforts for vaccination and testing sites. Reduction in revenue from fines and fees is reflective of the change in traffic patterns and priorities. Proposed amendments include adjustments for the years 2021 and 2022. STATUTORY DEADLINE FOR PROPERTY TAX DETERMINATION Page 152 of 217 Finally, for the Franklin County Assessor to levy property taxes, th e City is required to certify property tax levies with the County by November 30th of each year. RECOMMENDATION In consideration of the above-noted factors and conditions, staff will be recommending that the Council select Option B; adopting the statutorily allowed 1% increase in the City's property tax levy and instead of banking that capacity for potential use in the future. Page 153 of 217 OPTION AOPTION B - 2022 Levy$11,449,880$11,449,880 $11,449,880Implict Price Deflator (IPD) $114,499Increase in State Utility AV (Estimate) $100,000 $100,000New construction $350,223 $350,223Total Levy Amount$11,449,880 $11,900,102 $12,014,601Tax Levy Rate 1.684 1.483 1.497Rate Change from Current 2020 Levy - (0.201) (0.187) Cost per $1,000 on a $360,000 AV Home $606 $534 $539Net Change ($73) ($67)2021 Comparison2021 General Rate 2021 Total Rate* Tax CollectionCity of Richland $2.25 $2.44 $20,096,572City of Kennewick $1.82 $1.82 $14,053,134City of Pasco $1.68 $1.68 $11,449,880*Includes voted bondsCost per $1,000 on a $360,000 AV HomeCity of Richland $878City of Kennewick $654City of Pasco $606General Fund Levy OptionsCurrent 2021 Tax LevyNo Increase (Bank) + New Construction 1% IPD + New Construction EXHIBIT APage 154 of 217 2021 Mid Biennium AdjustmentProperty Tax Levy and General Fund RevenuePage 155 of 217 Ad Valorem Tax•Under state law, no local government may increase its property tax levy more than 1% in a given year, and local governments with a population of 10,000 or more are limited to the lesser of 1% or the rate of inflation (Implicit Price Deflator)•Implicit Price Deflator (IPD) for 2022 is 3.86%. City can adopt resolution received full 1% increase as allowed by statute.•IPD is an economic metric that accounts for inflation by converting output measured at current prices into constant-dollar GDP. This specific deflator shows how much a change in the base year's GDP relies upon changes in the price levelPage 156 of 217 Assessed Valuation TrendPage 157 of 217 Banked Capacity• Banked capacity is accrued when local governments forego yearly increases to property taxes• If no current need, City has historically banked its levy capacity for future purposes• City used all of its banked capacity in 2019 to fund major infrastructure investments like relocation of Fire Stations• City banked statutorily allowed 1% in 2020 and 2021. City currently has $251,197 in banked capacity. Page 158 of 217 OPTION AOPTION B - 2022 Levy $11,449,880 $11,449,880 $11,449,880Implict Price Deflator (IPD) $114,499Increase in State Utility AV (Estimate) $100,000 $100,000New construction $350,223 $350,223Total Levy Amount$11,449,880 $11,900,102 $12,014,601Tax Levy Rate 1.684 1.483 1.497Rate Change from Current 2020 Levy - (0.201) (0.187) Cost per $1,000 on a $360,000 AV Home $606 $534 $539Net Change ($73) ($67)General Fund Levy OptionsCurrent 2021 Tax LevyNo Increase (Bank) + New Construction 1% IPD + New Construction Page 159 of 217 Comparison (2021 Data)2021 Comparison2021 General Rate 2021 Total Rate* Tax CollectionCity of Richland $2.25 $2.44 $20,096,572City of Kennewick $1.82 $1.82 $14,053,134City of Pasco $1.68 $1.68 $11,449,880*Includes voted bondsCost per $1,000 on a $360,000 AV HomeCity of Richland $877.58City of Kennewick $654.07City of Pasco $606.31 Page 160 of 217 Property Tax Trend –RecommendedPage 161 of 217 General Fund Revenue OverviewGeneral fund revenue (excluding debt & pandemic related revenue), has been increasing in a healthy rateRevenues have increased by 27% since 2017 Strong growth leading to 4-5% increase in property taxes each yearStrong economic base growth leading to 7-8% increase in sales taxes each yearReliance in grants to hire public safety positionsRevision of rates for equitability and cost of serviceGrowth in residential, industrial, and commercial areas will continue this trend – less a national recession-10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2017 2018 2019 2020 2021 2022Revenue GrowthPage 162 of 217 General Fund RevenuesPage 163 of 217 General Fund Revenue Sources - TaxesTaxes2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Proposed Amended BudgetGeneral Property Tax 16,316,052 21,767,256 22,947,637 23,554,637 17%Retail Sales Tax 30,554,224 35,200,331 34,100,746 38,315,746 28%Utility Tax 18,409,878 23,041,599 22,584,924 23,947,157 18%Other Tax 2,543,719 1,940,960 1,922,780 2,342,780 2%Sub-Total Taxes 67,823,873 81,950,145 81,556,087 88,160,320 2%18%28%17%Page 164 of 217 General Fund Revenue Sources –Property Tax$607,000 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 165 of 217 Where does your property tax go?Page 166 of 217 General Fund Revenue Sources –Sales Tax4,215,000 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 167 of 217 Sales Tax RatesBreakdown of Sales Tax Rate 2021 RatesState 6.5%City/County (85%/15%) 1.0%Transit 0.6%Public Safety* 0.3%Criminal Justice** 0.1%Juvenile Detention 0.1%Total 8.6%*RCW 82.14.450; 60% is retained by counties, remaining 40% is allocated to cities on a per capita basis**RCW 82.14.340; County receives 10% of tax proceeds; remaining 90% is distributed to cities and unincorporated areas based on populationPage 168 of 217 Where do Your Sales Tax Come From?Retail53%Construction15%Wholesale Trade8%Accommodation/Food6%Other18%Page 169 of 217 Regular and optional sales tax (excludes Criminal Justice and Public Safety taxes)Consistent increase of 8% increase in sales tax collection since 2017Increases across all sectors but mainly in retail and constructionExpected decline in sales tax due to the supply issues during the pandemic. However, the trend of growth is expected to continue.Page 170 of 217 Retail Trade CategoryIncreasing at the rate of 12% in the last two yearsIncreased economic base within the City Expected to go up as Broadmoor commercial zones are developed in the next five yearsPage 171 of 217 Construction Trade CategoryRelies on major construction projects like new schools or business expansion2020 was a banner year with 14% increase over 2019Activity is expected to get down to 2019 levels for 2021Supply chain issues and new permits will impact the future growth of this revenue streamPage 172 of 217 Accommodation and Food Services CategoryRestaurants and hotel businesses make up most of this categoryImpact of the pandemic in 2020Activity is expected to exceed prior years due to strong recovery in 2021Historically modest increases over the yearsPage 173 of 217 General Fund Revenue Sources –Utility Tax1,362,233 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 174 of 217 General Fund Revenue Sources – Fees & Charges2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Proposed Amended BudgetFees & ChargesGeneral Government 6,395,207 6,909,984 6,982,332 7,757,297 Public Safety 3,296,090 2,824,809 3,384,632 3,099,632 Culture & Recreation 506,174 264,802 465,727 402,727 Economic Environment 4,021,511 4,729,140 4,808,548 6,164,769 Sub-Total Fees & Charges 14,218,982 14,728,735 15,641,239 17,424,425 5%0%2%6%Page 175 of 217 General Fund Revenue Sources –General Government774,965 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 176 of 217 General Fund Revenue Sources –Public Safety(285,000) (500,000) - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 177 of 217 General Fund Revenue Sources –Economic Environment1,356,221 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 178 of 217 General Fund Revenue Sources –Culture & Recreation(63,000) (100,000) - 100,000 200,000 300,000 400,000 500,000 600,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 179 of 217 General Fund Revenue Sources – Intergovernmental2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Proposed Amended BudgetIntergovernmentalPUD Privilege Tax 1,358,200 1,490,794 1,198,267 1,448,267 Liquor Board Profits & Excise Tax 1,904,019 2,113,710 2,011,037 2,232,037 Grants 534,876 3,793,485 998,743 12,341,730 Other 720,786 508,238 476,170 476,170 Sub-Total Intergovernmental4,517,880 7,906,226 4,684,217 16,498,204 0%9%2%1%Page 180 of 217 General Fund Revenue Sources –Public Utility District (PUD) Privilege Tax250,000 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 181 of 217 General Fund Revenue Sources –Liquor Board Profits & Excise Tax221,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 182 of 217 General Fund Revenue Sources –Grants11,342,987 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 183 of 217 General Fund Revenue Sources – Licenses & Permits2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Proposed Amended BudgetLicenses & PermitsBuilding Permit 2,948,409 3,487,024 3,684,978 4,039,978 Business License 1,362,979 1,490,164 1,452,466 1,452,466 Animal License 463,069 313,013 381,551 267,551 Other 43,499 63,052 46,786 46,786 Sub-Total Licenses & Permits 4,817,956 5,353,253 5,565,781 5,806,781 0%0%1%3%Page 184 of 217 Building permits and plan check fees are restricted to uses that will benefit the development services only and cannot be used for general government purposes.355,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsGeneral Fund Revenue Sources – Building Permit Page 185 of 217 General Fund Revenue Sources –Business License - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed Amendments (None)Page 186 of 217 General Fund Revenue Sources –Animal License(114,000) (200,000) (100,000) - 100,000 200,000 300,000 400,000 500,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 187 of 217 General Fund Revenue Sources – Fines & Forfeits2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Proposed Amended BudgetFines & ForfeituresTraffic 1,393,109 1,076,486 1,345,632 915,632 Non Traffic 234,667 884,933 1,115,602 1,080,602 Court 104,019 83,544 85,120 70,120 Sub-Total Fines & Forfeitures 1,731,794 2,044,963 2,546,354 2,066,354 Page 188 of 217 General Fund Revenue Sources –Fines & Forfeits(480,000) (1,000,000) (500,000) - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,0002017-2018 Actual 2019-2020 Actual 2021-2022 Adopted &Proposed Amended BudgetActualAdopted BudgetProposed AmendmentsPage 189 of 217 General Fund Revenue Sources - Other2017-2018 Actual2019-2020 Actual2021-2022 Adopted Budget2021-2022 Proposed Amended BudgetOther SourcesRent 657,535 551,417 651,945 490,307 Transfer in 874,333 452,987 1,269,762 1,269,762 Interest 507,182 686,092 570,507 570,507 Other 1,270,723 1,982,247 233,458 3,530,458 Sub-Total Other Sources 3,309,773 3,672,743 2,725,672 5,861,034 3%0%1%0%Page 190 of 217 ChallengesCity’s operations are increasing in complexity to match the sophistication of the communityGrowing city requires higher level of investment to maintain service levelsImprovements and replacements of City’s existing infrastructure will add pressures to General Fund revenuePage 191 of 217 SummaryCity’s assessed valuation has increased by 700% since 2000, 20% in last yearStaff recommends Council to take statutorily allowed 1% property tax levy for future purposesThe recommended option results in property tax rate of $1.497 per $1,000 Assessed ValuationRevenues have increased 27% since 2017 and sales tax growth of 7-8% has been maintained for past 5 yearsPage 192 of 217 Questions?Page 193 of 217 Taxes 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted Budget 2021-2022 Proposed Amended Budget General Property Tax 16,316,052 21,767,256 22,947,637 23,554,637 Retail Sales Tax 30,554,224 35,200,331 34,100,746 38,315,746 Utility Tax 18,409,878 23,041,599 22,584,924 23,947,157 Other Tax 2,543,719 1,940,960 1,922,780 2,342,780 Sub-Total Taxes 67,823,873 81,950,145 81,556,087 88,160,320 Fees & Charges General Government 6,395,207 6,909,984 6,982,332 7,757,297 Public Safety 3,296,090 2,824,809 3,384,632 3,099,632 Culture & Recreation 506,174 264,802 465,727 402,727 Economic Environment 4,021,511 4,729,140 4,808,548 6,164,769 Sub-Total Fees & Charges 14,218,982 14,728,735 15,641,239 17,424,425 Intergovernmental PUD Privilege Tax 1,358,200 1,490,794 1,198,267 1,448,267 Liquor Board Profits & Excise Tax 1,904,019 2,113,710 2,011,037 2,232,037 Grants 534,876 3,793,485 998,743 12,341,730 Other 720,786 508,238 476,170 476,170 Sub-Total Intergovernmental 4,517,880 7,906,226 4,684,217 16,498,204 Licenses & Permits Building Permit 2,948,409 3,487,024 3,684,978 4,039,978 Business License 1,362,979 1,490,164 1,452,466 1,452,466 Animal License 463,069 313,013 381,551 267,551 Other 43,499 63,052 46,786 46,786 Sub-Total Licenses & Permits 4,817,956 5,353,253 5,565,781 5,806,781 Fines & Forfeitures Traffic 1,393,109 1,076,486 1,345,632 915,632 Non Traffic 234,667 884,933 1,115,602 1,080,602 Court 104,019 83,544 85,120 70,120 Sub-Total Fines & Forfeitures 1,731,794 2,044,963 2,546,354 2,066,354 Other Sources Rent 657,535 551,417 651,945 490,307 Transfer in 874,333 452,987 1,269,762 1,269,762 Interest 507,182 686,092 570,507 570,507 Other 1,270,723 1,982,247 233,458 3,530,458 Sub-Total Other Sources 3,309,773 3,672,743 2,725,672 5,861,034 Total General Fund Revenue 96,420,260 115,656,066 112,719,350 135,817,118 Revenue Excluding Grants Revenue Increase 124,474,131 NOTE: Debt Proceeds were excluded to provide clarity Summary - General Fund Revenue Sources by Category 2% 18% 28% 17% 5% 0% 2% 6% 0% 9% 2% 1% 0% 0% 1% 3% 0% 1% 1% 3% 0% 1% 0% Page 194 of 217 Taxes Page 195 of 217 Revenue: Property Tax Description: Historical Data: Where Do Your Property Tax Dollars Go? The Franklin County Assessor's Office establishes a value for all property for tax purposes. The cost of providing public services determines property tax amounts. A property tax is an ad valorem tax on the value of a property, usually levied on real estate. This revenue is used to support general governmental purposes like Police, Fire, Parks, and roads. Rates are expressed in "dollars per $1,000 of assessed value (AV). The Washington State Constitution limits the annual rate of property taxes that may be imposed on an individual parcel of property to 1% of its true and fair value. Hence, property tax revenue can be increased by the said 1%, plus any new construction and annexation. The graphic below the chart shows the distribution of tax for local school districts (maintenance, operation, bonds), to the state for local school support, to the City of Pasco, and to Franklin County. $607,000 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Property Tax Revenue Actual Adopted Budget Proposed Amendments Page 2Page 196 of 217 Revenue: Sales Tax Description: Historical Data: Breakdown of Sales Tax Rate 2021 Rates State 6.5% City/County (85%/15%) 1.0% Transit 0.6% Public Safety* 0.3% Criminal Justice** 0.1% Juvenile Detention 0.1% Total 8.6% *RCW 82.14.450; 60% is retained by counties, remaining 40% is allocated to cities on a per capita basis **RCW 82.14.340; County receives 10% of tax proceeds; remaining 90% is distributed to cities and unincorporated areas based on population City of Pasco has a fairly diverse economy with approximately half of the City's sales tax being collected from retail activity, including automotive dealers. The chart below illustrates the major sources for the City's retail sales tax for the year 2020. The other category is comprised of numerous economic sectors including, but not limited to, administrative support services, waste management and remediation, real estate rentals and leases, transportation & warehousing, information services and manufacturing. Where Do Sales Tax Dollars Come From? Revenue from sales tax is used to support general City services, as well as for criminal justice and public safety purposes. Sales tax is the largest revenue for City's General fund. A majority of the funds generated by the sales tax rate go to the state, with a lesser percentage going to the City of Pasco and Franklin County. Retail trade, construction, wholesale trade, and accommodation/food services are the economic sectors generating a majority of this tax revenue. Retail 53%Construction 15% Wholesale Trade 8% Accommodation/Food 6%Other 18% Sales Tax Revenue Sources 4,215,000  ‐  5,000,000  10,000,000  15,000,000  20,000,000  25,000,000  30,000,000  35,000,000  40,000,000  45,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Sales Tax Revenue Actual Adopted Budget Proposed Amendments Page 2Page 197 of 217 Revenue: Utility Tax Description: Historical Data: Revenue: Other Tax Description: Historical Data: Breakdown of Other Tax Rates 2021 Rate Gambling Punchboards and Pull Tabs 5% Bingo and Raffles 5% Card Games 10% Admissions Tax 2.5% Leasehold Tax 4% The City has the authority to tax 8.5% on utility revenue including water, sewer, garbage, irrigation, solid waste, stormwater, electricity, telephone, and cable television. The City's general fund receives 7.5% of this tax, with remainder being disbursed to the Overlay and Street funds. Beginning in 2019, the state requested all taxes be disbursed to General Fund and transferred out to other funds. This category includes leasehold, gambling, and admissions tax. Gambling tax applies to all card games, punch board games, pull tabs, bingo games, raffles, and amusement games played within the City limits. An Admissions tax of 2.5% is levied upon every person who pays an admission charge to any place within the City limits. 1,362,233  ‐  5,000,000  10,000,000  15,000,000  20,000,000  25,000,000  30,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Utility Tax Revenue Actual Adopted Budget Proposed Amendments 420,000  ‐  500,000  1,000,000  1,500,000  2,000,000  2,500,000  3,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Other Tax Revenue Actual Adopted Budget Proposed Amendments Page 2Page 198 of 217 Fees & Charges Page 199 of 217 Revenue: General Government Description: Historical Data: Revenue: Public Safety Description: Historical Data: The City uses these resources within the General Fund to provide finance, human resources, safety, and administration services to all other funds within the City. The City uses a cost allocation plan, updated on a regular basis, to adequately distribute administrative services costs to other funds. The largest revenue source within this category is Interfund Administrative Services which totaled $3.2 Million in 2020. The City uses these General Fund resources to provide services to external agencies like the Tri-Cities Airport, Port of Pasco, and Pasco School District. A majority of these revenues are attributable to Airport Rescue and Firefighting (ARF), Fire Protection Services (includes wildland firefighting), and School Resource Officer (SRO) programs. (285,000) (500,000) - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Public Safety Revenue Actual Adopted Budget Proposed Amendments 774,965 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget General Government Revenue Actual Adopted Budget Proposed Amendments Page 3Page 200 of 217 Revenue: Economic Environment Description: Historical Data: Revenue: Culture and Recreation Description: Historical Data: The City's Engineering Department provides services to all projects undertaken by the City. The revenue received from providing these services flows into the General Fund. This category of revenue also includes plan check, zoning, inspection, and State Environmental Protection Act (SEPA) fees. The City's Parks & Recreation Department provides the public with variety of recreational services including swimming lessons, and exercise classes. All revenues received for services provided by Parks & Recreation flow into this category. 1,356,221 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Economic Resources Revenue Actual Adopted Budget Proposed Amendments (63,000) (100,000) - 100,000 200,000 300,000 400,000 500,000 600,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Culture & Recreation Revenue Actual Adopted Budget Proposed Amendments Page 201 of 217 Intergovernmental Revenues Page 202 of 217 Revenue: Public Utility District (PUD) Privilege Tax Description: Historical Data: Revenue: Liquor Board Profits and Excise Tax Description: Historical Data: State and County collected revenue that is shared with schools, counties, and cities based on set of factors including sales, location of dams and reservoir, and population. Tax is applied to public utility district when it generates, distributes, and sells electricity. Due to the COVID crisis and the Governed utility moratorium the revenue for 2021 has seen an decrease in collected utilities. State-collected revenues that are shared with all cities are derived from liquor receipts (profits and excise taxes). Cities get 40% share of the liquor board profits and 28% of the liquor excise tax receipts. 250,000 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget PUD Privilege Tax Revenue Actual Adopted Budget Proposed Amendments 221,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Liquor Board Profits & Excise Tax Actual Adopted Budget Proposed Amendments Page 203 of 217 Revenue: Grants Description: Historical Data: The City actively seeks grant funding from local, state, and federal agencies for a variety of programs that benefit the City. The grants included as revenue for general fund are generally related to police and fire services. However, City has received several COVID-19 pandemic related grants like American Rescue Plan Act (ARPA), as well as grants to operate various testing and vaccination sites across the region. City has also received Assistance for Fire Fighters grant to purchase SCBA equipment, and Department of Ecology to purchase spill response boat. 11,342,987 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Grants Revenue Actual Adopted Budget Proposed Amendments Page 204 of 217 Licenses & Permits Page 205 of 217 Revenue: Building Permit Description: Historical Data: Revenue: Business License Fees Description: Historical Data: Building permit fees include basic building, mechanical, and electrical permit fees. Permit fee is based on improvement value of the project. All building permits revenues are restricted to be utilized for development services only. Businesses located within the City, or that operate temporarily within the City, must obtain a business license. The annual fee for a business license is a flat $80 plus $20 per full time equivalent employee (FTE). - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Business License Fees Revenue Actual Adopted Budget Proposed Amendments (None) 355,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Building Permit Revenue Actual Adopted Budget Proposed Amendments Page 206 of 217 Revenue: Animal License Fees Description: Altered Unaltered One Year $ 15 One Year $ 55 Three Year $ 40 Three Year $ 160 Historical Data: Animal licensing is required in the City for all dogs. Licenses are issued on a one or three year basis. (114,000) (200,000) (100,000) - 100,000 200,000 300,000 400,000 500,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Animal License Fees Revenue Actual Adopted Budget Proposed Amendments Page 207 of 217 Fines & Forfeits Page 208 of 217 Revenue: Fines and Forfeitures Description: Historical Data: Includes traffic and non-traffic fines and penalties. Traffic infraction fines are set by state supreme court, however, non-traffic infractions are set by the City. (480,000)  (1,000,000)  (500,000)  ‐  500,000  1,000,000  1,500,000  2,000,000  2,500,000  3,000,000 2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget Fines & Forfeiture Revenues Actual Adopted Budget Proposed Amendments Page 209 of 217   -1-   ORDINANCE NO. ________ AN ORDINANCE of the City of Pasco, Washington, providing for an increase in the regular property taxes of the City for levy in 2021 and collection in the 2022 tax year; preserving levy capacity for future years; and providing for related matters. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: §1. Findings and Determinations. The City Council (the “City Council”) of the City of Pasco, Washington (the “City”), makes the following findings and determinations: (a) RCW 84.55.120(1) provides that the City Council must hold a public hearing on revenue sources for the following year’s current expense budget and that the hearing must include consideration of possible increases in property tax revenues and must be held prior to the time the City levies the taxes. (b) RCW 84.55.120(3) provides that the City may not authorize an increase in property tax revenue from the previous year except by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and percentage. (c) Pursuant to proper notice, the City Council held a public hearing on November 15, 2021 (the “Hearing”), to consider the City’s 2022 its revenue sources, along with consideration of possible increases in property tax revenues. (d) The City’s actual levy amount from the previous year was $11,449,880. (e) The City has a population that is greater than 10,000. (f) The City Council, after the Hearing and after duly considering all relevant evidence and testimony presented, determined that the City requires 1% in allowable increase in property tax revenue from the previous year, in addition to revenue resulting from the addition of new construction and improvements to property, newly constructed wind turbines, solar, biomass and geothermal facilities, if the facilities are not state assessed, any increase in the value of state-assessed property, any annexations that have occurred and any refunds made, in order to discharge the expected expenses and obligations of the City and in its best interest. §2. Property Tax Increase Authorized. An increase in the regular property tax levy of the City is authorized for the levy to be collected in the 2022 tax year. The dollar amount of the increase over the actual levy amount from the previous year is $114,499 (one hundred and fourteen thousand four hundred and ninety-nine dollars), which is a percentage increase of 1% (one percent) from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in assessed value due to construction of wind turbine, solar, biomass and geothermal facilities, if the facilities are not state assessed, any increase in the value of state assessed property, any annexations that have occurred and any refunds made. Page 210 of 217   -2-   §3. Transmittal. The City Clerk is authorized and directed to transmit a certified copy of this ordinance to the Franklin County Assessor on or before November 30, 2021. §4. General Authorization and Ratification. The City Manager, the Finance Director of the City, the City Clerk and other appropriate officers of the City, and each of them acting alone, are authorized and directed to take any action and to execute any document as in their judgment may be necessary or desirable to effectuate the provisions of this ordinance. All prior actions in furtherance of and consistent with the terms of this ordinance are ratified and confirmed. §5. Effective Date. This Ordinance takes effect five (5) days after passage and publication. Adopted by the City Council of the City of Pasco this ___ day of ____________, 2021. _____________________________ Saul Martinez Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham Eric Ferguson City Clerk City Attorney   Page 211 of 217 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 212 of 217 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 213 of 217 • 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 214 of 217 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 215 of 217 • 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 216 of 217 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 217 of 217