Council told waiving right‑of‑way fees for nonprofits would be a prohibited gift of public funds

Council discussion on April 8 examined whether the city could reduce or waive right‑of‑way permit fees for nonprofit events after public comment from the Pullman Civic Trust and questions from council members.

City legal counsel Thad advised the council that, under Washington law and the state constitution, waiving a fee in this circumstance would likely be treated as a "gift of public funds." He explained the constitutional prohibition does not distinguish between nonprofit and for‑profit entities when public property or funds are provided without compensation. "The Washington State Constitution does not distinguish between for profit and nonprofit. It's only ... private entities," counsel said, describing the legal limit.

Council members asked whether alternative fee structures or partial reductions might be lawful; counsel said reducing or suspending fees would create similar legal risks and that the city’s fee structure must be based on the cost of providing the service. Several council members suggested other approaches: Council member Fajarin volunteered to work with community members and nonprofits to find external funding or private solutions, and Council member Gaither asked about the fairness of the fee structure.

Council members also discussed whether specific downtown plazas could be reclassified as parks (which could change fees and permitted uses). Legal and staff responses noted some downtown plazas were built with state grants and that changing their legal/use status could require review or impose grant restrictions.

No formal policy change or fee waiver was approved; the legal opinion that waiving the fee would likely constitute a prohibited gift of public funds was the dispositive guidance at the meeting.