Pasco appears willing to sell excess sewer capacity to the Port of Walla Walla after the port sweetened the pot.
On Monday evening, the Pasco City Council considered a revised proposal that increased the revenue to the city for providing sewer treatment to the port's 120-acre Burbank Business Park.
The port would build the infrastructure to bring wastewater to the city's system, including a pipe under the Snake River.
Under the new deal, the port would commit to purchasing 200,000 gallons per day of sewer capacity within 15 years for $1.8 million, said City Manager Gary Crutchfield. That would help decrease the cost of a new sewer plant in northwest Pasco that will need to be built within the next several years.
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The northwest plant is expected to cost about $10 million, Crutchfield said.
The cost for the sewer capacity has increased from $750,000 per section of 100,000 gallons per day to $900,000 per section, according to the council report. The first section would be purchased within the first year, and the second within 15 years, with inflation applied to the cost. The port also could purchase a third section, which the city could cancel if it hasn't been bought within 50 years.
In addition to sewer charges, the city would receive a payment in lieu of taxes that would start at $24,000 per year, Crutchfield said. That would increase annually depending on inflation.
The inflation increase, which would start after the fifth year of the agreement, is new. Crutchfield said it should protect the city.
Another change would allow the port to terminate the 75-year agreement with five years' notice, Crutchfield said.
The council will consider approving the main concepts of the proposal and moving forward on an interlocal agreement next week.
If the council approves moving forward with the agreement, city staff will write an interlocal agreement that would come back to the council in a couple of months, Crutchfield said.
-- Kristi Pihl: 582-1512; firstname.lastname@example.org