Pasco moves to let public facilities district hire own counsel as city considers operating new aquatic center

City staff on the workshop agenda recommended amendments to the interlocal agreement between the City of Pasco and the Pasco Public Facilities District (PFD) to give the PFD the option to hire its own legal counsel and to authorize a separate interlocal agreement for the city to manage operations of the new aquatic center. Director Jesse Rice presented the request and said the current city-provided legal services will end this year and the PFD needs the flexibility to procure counsel.

The PFD’s construction team also gave a construction update and a management proposal. Matt Watkins, a former Pasco mayor and staff presenter, said walls and exterior concrete are in place, the project includes added amenities from the design-build process (a larger natatorium, upgraded chlorination, skylights, a retractable “ninja” course), and the team is “still aiming” for a Memorial Day 2026 opening. Watkins described facility features and called out the need to begin commissioning, branding and marketing.

Why it matters: the PFD is funding construction and operating costs through a sales-tax measure; how operations are managed will affect program schedules, staffing and user fees. The PFD asked the city to be the operating partner to share staff and programming, reduce duplication with the Memorial Pool, centralize lifeguard recruitment and training, and keep admission costs lower than a private operator might charge.

Director Jesse Rice said two independent studies — one by Ballard King and another by FCS — modeled operating revenues and expenses and “both studies reflected that the aquatic center will be fiscally solvent and able to cover all operating expenses, including those of the city.” Rice said the PFD would cover the majority of direct operating costs; the studies estimate shared full‑time staffing and benefits at roughly $535,000 per year, with the PFD paying about 75 percent of those shared staffing costs and the city picking up about 25 percent, as an example.

City Attorney Michael Ferguson (identified in the meeting as the city attorney) explained the legal rationale for the agreement change: historically the city attorney has served as district counsel without conflict; with growth of the project the potential for differing interests increases, so the PFD should have the option to retain separate counsel. Ferguson walked the council through the proposed contract language that would allow the city attorney to serve or allow the district to contract its own counsel.

Council reaction was generally supportive of a city operating partnership. Mayor Pro Tem Charles Grimm said the shared operation should reduce costs and avoid confusing the public; he and other members asked about timeline and financial safeguards. Councilman Peter Harpster asked whether the PFD’s sales tax would cover legal services; Rice confirmed legal services and project legal counsel are paid from PFD tax revenue. Councilman Perales said he was not yet ready to commit and asked staff to “pump the brakes,” requesting additional detail on lifeguard training, emergency action plans and long‑term staffing impacts before final approval. Rice and Watkins said staff would return with an updated interlocal agreement and more detail; staff asked council to authorize a new ILA so the PFD can publish an RFQ/RFP for operations and any outside counsel as needed.

The decision path: staff recommended (1) approving an update to the current interlocal agreement to allow the PFD to seek separate legal counsel and (2) preparing a new interlocal agreement for council consideration that would make the city the operating partner for the aquatic center. Council members signaled general support and asked for follow‑up detail; no final ordinance or vote was taken at the workshop. Rice said staff intends to bring the amended ILA back on the consent agenda at the next regular meeting and to continue working toward an operating ILA by the end of the calendar window staff identified.

Operational next steps and risks: Rice emphasized that full lifeguard recruitment, training and certification are prerequisites to opening; staff also must develop marketing, standard operating procedures, IT/financial systems, and a staffing plan. Council members requested transparent accounting protocols so costs charged to the PFD and the city are segregated and audited.

Quote: “Both studies reflected that the aquatic center will be fiscally solvent and able to cover all operating expenses, including those of the city,” Director Jesse Rice said during the workshop presentation.

Ending: Staff will return with a draft interlocal agreement and supplemental details on staffing, budgeting and lifeguard recruitment; the PFD and city expect to continue parallel work so the board can proceed to recruit legal counsel and an operations provider if council approves the ILA update.