City Council Meetings

Moses Lake City Council Dustin Swartz, Mayor | Judy Madewell, Deputy Mayor | Don Myers, Council Member | Mark Fancher, Council Member Deanna Martinez, Council Member | David Skaug, Council Member | Victor Lombardi, Council Member Tuesday, May 20, 2025 Moses Lake Civic Center – 401 S. Balsam or remote access* Special Meeting Agenda Call to Order – 6:30 p.m. Roll Call #1 Chip Seal & Restriping Configuration Proposal: Downtown, Wheeler Road, and Hill Avenue pg 02 Motion Presented by Engineering Team Jeff Holm, Levi Bisnett, and Leigh Ramsey Public Comment - pertaining to this topic Summary: Council to review and consider approval as presented #2 Extra Territorial Agreement Policy Draft pg 04 Presented by CIP Manager Leigh Ramsey Public Comment – pertaining to this topic Summary: Discussion & Direct Staff to Bring Back Revised Policy for Approval Adjournment Future City Meetings: Sleep Center Town Hall June 3 at 6:30 pm, Regular Council Meeting May 27, City Council Retreat June 5 and 12. NOTICE: Individuals planning to attend the in-person meeting who require an interpreter or special assistance to accommodate physical, hearing, or other impairments, need to contact the City Clerk at (509) 764-3703 or Deputy City Clerk at (509) 764-3713 at least 24 hours in advance of the meeting. * Remote Options: #1 MS Teams App or Online Join the meeting now Meeting ID: 249 083 692 287 9 Passcode: gE2Cd3N4 Or #2 MS Teams by phone (audio only) +1 509-707-9401,982254153# United States, Moses Lake Find a local number Phone conference ID: 982 254 153# COML Special Meeting 5-20-25, Page 1 of 31 Council Agenda Bill To: Agenda Item Number: Rob Karlinsey, City Manager 28735 From Brian Baltzell, Public Works Department Director Public Works For Agenda of: Proceeding Type 5/20/2025 New Business Subject Chip and Fog Seal 2025 Advertisement w/ Striping Revisions, & Angle Parking Authorization Reviewed and Approved by: City Manager City Attorney Community Development Finance Fire Human Resources Parks, Rec, & Cultural Services Police Public Works Technology Services Expenditure Required: Amount Budgeted: Appropriation Required: $ 0.00 $ 0.00 $ 0.00 Action Requested Staff recommends City Council motion to authorize staff to advertise Seal Coat Project 2025 with proposed striping revisions that includes angled parking. Packet Attachments (if any) Overview Moses Lake City Council accepted award of $1,045,618 in TIB (Transportation Improvement Board) funds with a 20% match in December 2024 to improve Safety, reduce future pavement preservation cost, improve access and strip additional angled parking, turn lanes, shorter crosswalks, bike lanes etc. Staff will present proposed striping changes and updates about community outreach that resulted from mailers to adjacent owners/businesses, open houses, notifications to the DMLA and Chamber, and project website and newspaper articles. Based on current and projected vehicle volumes, reconfiguration of 4 - drive lanes to 2 or 3 lanes in select locations will save city money on needed pavement preservation project, improve safety, and reduce future cost without jeopardizing function allowing better use of limited funds on the city's growing street network. The Moses Lake Municipal code requires the City Council to authorize any new angled parking. Fiscal and Policy Implications Use of TIB Grant funds will cover 80% of City cost on eligible streets. Completed project with proposed changes will reduce future maintenance costs by as much as 50%. Rejection of proposed striping changes acceptable to funding agency will result in loss of funds and additional cost to complete project or reduction in project scope. Options and Results COML Special Meeting 5-20-25, Page 2 of 31 Approve, Authorize, or Adopt: Staff will advertise project and return with bid summary and award request in June. Provide Amended Direction: Staff will coordinate recommended changes with TIB and advertise project as directed by council. No Action Taken: Project will be delayed until 2026, staff will await further direction from council to delay use of or reject TIB grant funds. COML Special Meeting 5-20-25, Page 3 of 31 Council Agenda Bill To: Agenda Item Number: Rob Karlinsey, City Manager 29033 From Brian Baltzell, Public Works Department Director Public Works For Agenda of: Proceeding Type 5/20/2025 Study Session Subject UGA Extra Territorial Agreement (ETA) Policy Revision Reviewed and Approved by: City Manager City Attorney Community Development Finance Fire Human Resources Parks, Rec, & Cultural Services Police Public Works Technology Services Expenditure Required: Amount Budgeted: Appropriation Required: $ 0.00 $ 0.00 $ 0.00 Action Requested Staff are providing the revised proposed Extra Territorial Agreement (ETA) Policy for review and further discussion. No action requested at this time. Packet Attachments (if any) 2025-05-06_UpdatedREDLINEDETAPolicyDraft.pdf 1.05MB 2025-05-06_UpdatedCLEANETAPolicyDraft.pdf 839.61KB COML Special Meeting 5-20-25, Page 4 of 31 Overview Staff presented a draft Extra Territorial Agreement (ETA) policy for development in the urban growth area at the April 15th council workshop with options for ERU allocation. Council provided feedback and direction to combine options presented and update language within the policy. A summary of the edits is outlined below: - Throughout the document the language was revised to reflect policy setting rather than providing options; spelling, punctuation, and formatting were also adjusted. - Added that projected capacity will be provided by zone (and connected zones) for the next five years, annually. - Added a second application deadline of May 1st. - Added language throughout document that states that vested development in the permitting pipeline, by zone, will also be provided and subtracted from capacity. - Staff were asked to reference the state standard that determines 200 gallons per day (gpd) should be used for potable only developments. The Washington State Department of Health Water System Design Manual (October 2019) states, "For projects that propose to have separate irrigation systems, the design of the potable (internal use) water system can be predicated on the estimate of 350gpd/ERU." It further explains that statistical data suggests the minimum ERU consumption for in-house only use is around 200 gpd. As such, language was added that UGA allocations will be based on an average daily demand of 200 gpd within the application and evaluation section and definitions at the end of the policy. - Combined the tiered application classifications of 0, 1, and 2 (from Option 1) and ERU allocation (previously Option 2) to create new process for application, evaluation, and ERU allocation. - Removed example of previous ERU allocation. - Added two additional criteria for council consideration: capacity by zone or connected zones, known or projected new development in zones. - Added footnotes to address vested ERUs for previously issued permits will take additional staff time to compile. Staff have verified that the consulting firm who currently manages our water model can provide capacity by zone (and connected zones) by September of 2025. The revised policy is being provided for further discussion and feedback. Staff will bring the policy back to council in June or July for further consideration. Fiscal and Policy Implications None at this time. Options and Results Approve, Authorize, or Adopt: N/A Provide Amended Direction: N/A No Action Taken: N/A COML Special Meeting 5-20-25, Page 5 of 31  Extra Territorial Agreement (ETA) Policy City Council Ordinance ##### / Resolution #### Effective ##.##.2025 ETA Policy Effective ##.##.2025 Page | 1 of X COML Special Meeting 5-20-25, Page 6 of 31 Contents Preamble ....................................................................................................................................................... 3 Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area ... 3 Water ........................................................................................................................................................ 3 Wastewater............................................................................................................................................... 4 Annual Deadlines .......................................................................................................................................... 5 ETA Application and Evaluation .................................................................................................................... 7 Definitions ................................................................................................................................................... 16 Preamble ....................................................................................................................................................... 3 Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area ... 3 Water ........................................................................................................................................................ 3 Wastewater............................................................................................................................................... 4 Options for ETA Review and Approval .......................................................................................................... 5 Appendix A – Option 1 .................................................................................................................................. 7 Appendix B – Option 2 ................................................................................................................................ 10 Appendix C – Option 3 ................................................................................................................................ 13 Definitions: .................................................................................................................................................. 15 ETA Policy Effective ##.##.2025 Page | 2 of X COML Special Meeting 5-20-25, Page 7 of 31 Preamble The City of Moses Lake is the primary purveyor of water and wastewater services within the city limits and within its water service area which includes the city’s Urban Growth Area (UGA). The City’s first responsibility is to its existing ratepayers and customers within the city limits. The City must ensure that existing water and wastewater infrastructure is adequately maintained and that system capacity for its existing residents and businesses is ensured for the long term. The city does not hold itself out as the sole water purveyor in the UGA and recognizes that other water purveyors provide water service within the UGA. The Growth Management Act encourages growth within city limits and urban growth areas. The City also encourages growth within the City and the UGA to increase the local housing inventory and allow for more primary industry employers. Allowing for more housing units to be built is essential in preventing housing unaffordability and keeping pace with the growing population. Encouraging and facilitating primary industry lifts and diversifies Moses Lake’s economy, brings in family-wage jobs, and provides economic mobility for our residents. Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area To assist with housing and job growth, the City can choose to provide water and wastewater utilities to new development in the UGA, either through annexation or what is known as extra territorial utility extension agreements or ETAs. ETAs are contracts through which the City can choose to provide water and/or wastewater utilities in the UGA without concurrent annexation and subject to additional conditions of service. Water The City recognizes the region’s limitations on and value of potable water. While the City continues to improve its system capacity through water conservation efforts and the acquisition of new water sources, providing water for new housing and business development in the UGA must be done carefully and according to the following primary principles and requirements: 1. The city water system has sufficient capacity to serve the added development without causing negative service impacts or disruption to existing customers both within the city limits and in the UGA. 2. The City will provide potable water only. ETAs and new connections in the UGA will not allow the use of City water for irrigation. Therefore, before the City will provide potable ETA Policy Effective ##.##.2025 Page | 3 of X COML Special Meeting 5-20-25, Page 8 of 31  water for new development in the UGA, the developer must adequately demonstrate in writing and to the City’s satisfaction that they can acquire water for irrigation from a reliable source. As a condition of the service agreement, the City will acquire the legal authority to access and inspect the receiving property throughout the term of the service contract to ensure irrigation is not connected to the City’s potable distribution system. Violation of this condition shall be enforced pursuant to City ordinance and shall include the City’s right to terminate water service upon discovery of an unauthorized connection or a property owner’s refusal to permit City inspection, in addition to fines and injunctive relief. 3. The City will charge the necessary application fees, system development charges, connection fees, capacity reservation fees, and rates to recover its long-term costs for providing water service in the UGA. Developer will pay for the installation of the necessary infrastructure to reach their development and provide service – this may include, but is not limited to, main lines, lateral lines, service lines, storage, system upgrades/upsizing, and all associated service connections. Infrastructure requirements are dependent upon the development proposed and may be onsite or offsite– City staff will identify the needed improvements based on plans submitted for review. Failure to supply sufficient plans may result in a delay in determination of required improvements. City may, at its sole discretion, conduct a rate study to adequately determine the cost of providing water in the UGA at the sole cost of the developer. 4. Property owner shall agree to grant the City power of attorney on its behalf to sign an annexation petition for the UGA properties being served, should annexation be considered in the future. 5. Limited Connection Window – as part of the application for service, the property owner must pay any required fees, rates, and costs as established by the City including a non- refundable capacity reservation fee, execute an ETA, and comply with the terms of the ETA which shall establish a deadline for connection to the City potable water system for the allocated and reserved Equivalent Residential Units (ERUs). Failure to meet that deadline will result in termination of the ETA and capacity reservation and any letter(s)/certificate(s) of water availability will be rescinded. All fees paid by property owner are non-refundable. Wastewater 1. The wastewater system must have sufficient capacity to serve the added development without causing service negative service impacts or disruption to existing customers both within the city limits and in the UGA. 2. The City will charge the necessary system development charges, connection fees, and rates to recover its costs for providing wastewater service in the UGA. Developer will pay for the installation of the necessary infrastructure to reach their development and provide service – this may include, but is not limited to, mains lines, lateral lines, lift stations, service lines, system upgrades/upsizing, and all associated service connections. ETA Policy Effective ##.##.2025 Page | 4 of X COML Special Meeting 5-20-25, Page 9 of 31  Infrastructure requirements are dependent upon the development proposed and may be onsite or offsite – City staff will identify the needed improvements based on plans submitted for review. Failure to supply sufficient plans may result in a delay in determination of requirement improvements. City may, at its sole discretion, conduct a rate study to adequately determine the cost of providing wastewater service in the UGA at the sole cost of the developer. 3. Property owner shall agree to grant the City power of attorney on its behalf to sign an annexation petition for the UGA properties being served, should annexation be considered in the future. 4. Limited Connection Window – as part of the application for service, the property owner must pay any required fees, rates, and costs as established by the City including a non- refundable capacity reservation fee, execute an ETA, and comply with the terms of the ETA which shall establish a deadline for connection to the City wastewater system for the allocated and reserved ERUs. Failure to meet that deadline will result in termination of the ETA and capacity reservation and any letter(s)/certificate(s) of wastewater availability will be rescinded. All fees paid by the property owner are non-refundable. Options for ETA Review and ApprovalAnnual Deadlines Staff recommends that the City Council consider the following frameworks for review and approval of ETA applications. In all instances, staff recommend that each year the following deadlines apply: Annual Deadline Action/Item Due September 15 System models are updated and available ERUs are provided to City Council; ERU capacity will be provided by zone with a projection for the next 5 years. Any vested development in the permitting pipeline will also be provided and subtracted from available capacity.1 November 1 Semiannual application deadline #1: ETA applications for consideration of allocation in December of same year. the following year are due. First City Council Staff will bring forward to Council all applications for Meeting in December approval/denial (but no later than December 15) January of the Following Construction Management will execute ETA with property Year owner(s) for approved applications. 1 Identifying vested ERUS for permits in the pipeline for previous two years will take additional staff time to compile as historically the water availability letters/certificates were not required for all permits. ETA Policy Effective ##.##.2025 Page | 5 of X COML Special Meeting 5-20-25, Page 10 of 31  Community Development will begin Developer Agreement negotiations (if applicable) May 1st of the Following Semiannual application deadline #2: ETA applications for Year consideration in June of current year. Number of ERUs available will be calculated using the previous September’s original allocation less any allocations for development within city limits or the UGA since that date. In the UGA the permitting authority is Grant County – not the City of Moses Lake – making it more difficult to monitor and ensure fees are paid prior to construction beginning. As such, staff recommend that ETA applications require payment of all associated fees (i.e. connection charges, system development charges, capacity reservation fees, etc.) as outlined in the policy at the time of ETA application. Additionally, staff support City Manager approval authority for any ETA application that is accompanied by a Grant County Health District public health emergency hookup request and proposed connection is within 660 feet of an existing main line. For any connection that requires extension of infrastructure to provide service, that cost is the sole responsibility of the applicant. The options for how to allocate and approve ETAs in the UGA are as follows: 1) Tiered Evaluation Structure – See Appendix A 2) ERU Allocation by Council Legislative Action – See Appendix B  Key Points: o Available ERUs can/may vary from year to year. o To prevent allocation from appearing as arbitrary and capricious a decision framework is highly recommended. 3) Lottery Allocation – See Appendix C ETA Policy Effective ##.##.2025 Page | 6 of X COML Special Meeting 5-20-25, Page 11 of 31 Appendix A – Option 1 ETA Application and Tiered Evaluation ERU allocation relies on the City of Moses Lake utility system models. The system models utilize the data from our installed infrastructure to estimate and evaluate the effects of new development(s). The estimates do not guarantee fire flow or available source and cannot be construed as a guarantee. Our model will require annual, ongoing, maintenance as new sources are brought online, new infrastructure is installed, and environmental conditions fluctuate to ensure ERU allocation in the UGA does not put the City at risk of service disruption to existing customers both inside the city limits and the UGA. Annually, staff will provide City Council with the projected system capacity for five years, by zone (factoring in connected zones). Available zone capacity will be reduced by vested development in the permitting pipeline.2 The City shall only allow UGA potable water connections, as such, UGA allocations will be based on an average daily demand of 200 gpd. UGA development will be required to bring an alternative irrigation source for any non-potable use. If/when more sources or capacity become available, the City, through its modeling, will recalculate annual allowed new connections in the UGA. Step 1 – Application: The applicant formally makes a request for City wWater and/or wastewaterSewer for specified parcels outside of the corporate limits by a letter from the property owner(s) to the Public Works Director. The letter shall include a narrative and conceptual site plan that describes the numbers of residential units to be served, commercial uses to be served, or industrial process volumes and fire flows to be served. The applicant shall include all materials as defined in Resolution #3717 or applicable city ordinance. Step 2 – Evaluation: Staff reviews the formal requests and classifies them based on the criteria below: and processes per the following criteria: CLASSIFICATION DESCRIPTION CLASS 0 The parcel(s) are contiguous (touching/abutting) to existing corporate limits of the City. Water and/or wastewatersewer mains have already been extended to the area and tapping into the main by a lateral is all that is required for 2 Identifying vested ERUS for permits in the pipeline for previous two years will take additional staff time to compile as historically the water availability letters/certificates were not required for all permits. ETA Policy Effective ##.##.2025 Page | 7 of X COML Special Meeting 5-20-25, Page 12 of 31  IN/ABUTTING CITY connection. These requests for Wwater and wastewaterSewer will require LIMITS annexation as part of service. Irrigation by means other than City potable water is preferred. No ETA to be issued. Applications accompanied by a Grant County Health District public health emergency hookup request may have an ETA executed while the property owner works through the process of annexation.The only exception is if the application is accompanied by a Grant County Health District public health emergency hookup request. CLASS 1 The parcel(s) are not contiguous to existing corporate limits of the City. PUBLIC HEALTH However, the application is accompanied by a sState or lLocal agency public health emergency hookup request. Water and/or wastewatersewer mains have already been extended to the area and tapping into the main by a lateral is all that is required for connection. Irrigation by means other than City potable water is required. Residential Lot Example: An existing home in the UGA has water from a well and a septic system. The existing septic system fails, and the Department of Health declares it a public health emergency and refers them to the City to connect. There is an existing main along the frontage of the property and the resident can tap into the main for their service line. CLASS 2 The parcel(s) are not contiguous to existing corporate limits of the City. SHORT EXTENSION However, the parcel(s) have a short, developer provided, wWater extension, sSewer extension, and/or rReservoir pPlacement, with extensions of 0-660FT (1/8 mile) to connection point, with no pressure or fire flow capacity issues. Consideration shall be given if parcels are touching or abutting other parcels that are contiguous to existing corporate limits but not yet annexed and developer can secure commitment by those parcel(s) to annex to the City, thereby rendering this a Class 0 application. Irrigation by means other than City potable water is required. Residential Lot Example: New house in UGA has City water main on their frontage street and they are requesting water service. An existing home with a failing septic system, has sewer main on their frontage street and they are requesting sewer service. Property owner/developer will be required to complete main extension to their property and install service line at their sole cost. CLASS 3 The parcel(s) are not contiguous to existing corporate limits of the City. PREVIOUS ETA However, the parcel(s) have had a previous Council approved ETA or commitment that has since expired, and the proposed development has had no substantial changes. Replats or changes in the number of service connections will require a new ETA be submitted to, and approved by, City Council. CLASS 4 The parcel(s) are not contiguous to existing corporate limits of the City. COST/SERVICE However, proposed development further the goal of increased housing and/or BENEFIT employment. Consideration shall be given if parcels are touching or abutting other parcels that are contiguous to existing corporate limits but not yet annexed and developer can secure commitment by those parcel(s) to annex to the City, thereby rendering this a Class 0 application. As per the principles and requirements outlined in this policy, a long-term City cost-benefit analysis (including water rights transfer or fee in lieu of for the service being provided) ETA Policy Effective ##.##.2025 Page | 8 of X COML Special Meeting 5-20-25, Page 13 of 31  shall be completed at developer’s expense prior to application approval. Rate and charges will reflect the actual cost of service to far flung areas. Irrigation by means other than City potable water is required. Applications for utility connection within the UGA, that cannot be classified as outlined above, will be evaluated and presented to City Council for consideration as detailed in Step 3B (below). Step 3A – Classified Request Staff Processing: If the request for connection can be classified as 0, 1, or 2 as outlined above, staff shall contact the applicant and request they complete the application process by furnishing any required documents not already provided. This may include, but is not limited to, The applicant will complete the ETA application by providing materials as defined in Resolution #3717 and any applicable ordinance, Extra Territorial Agreement Form, and this ETA Policy. Staff will review the application and prepare a Staff Report which includes a narrative analysis, proposed conditions of approval, and stafftype of recommendation to the Council. The ETA application will be presented to Council for action/consideration. Step 3B – Non-classified Request Staff Processing: For applications that do not meet the classification criteria to be considered a class 0, 1, or 2 application, staff will review the application based on Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area previously identified in the policy, addressing system capacity concerns (if any), fees required, and questions/concerns/comments pertaining to the specific application. A summary report is created to be provided to Council with the application for consideration of ERU allocation – which includes narrative analysis, proposed conditions of approval, and staff recommended action. Step 4 – Council Action / ERU Allocation: Council reviews the Staff Report and associated application materials for approval consideration of the Extra Territorial Agreement presented. Priority ERU allocation will be given to applications classified as 0, 1, and 2, in that order and will be approved or denied by the City Manager. For requests that do not meet those classifications, City Council will determine ERU allocation by reviewing the staff summary report and will consider reasonable criteria such as:  Distance from the City limits,  Distance from existing water/sewer infrastructure,  Impact on City services and road network, ETA Policy Effective ##.##.2025 Page | 9 of X COML Special Meeting 5-20-25, Page 14 of 31   Percentage of available capacity to be used by the development,  Council’s determined need for certain types of development to meet the needs of the City. For example, Council may give higher priority for a proposed development that includes primary industry that diversifies the City’s employment. As another example, the City Council may place a higher priority on housing types that are needed to keep pace with job and population growth.  Consistency with the City’s Comprehensive Plan, Water System Plan, Sewer System Plan, and other relevant long term planning documents.  Capacity by zone or connected zones – considers pressure and source dependency between zones  Known or projected new development within zones (will require Community Development to supply data regularly) Step 5A – ETA Not Processed: If the City Council denies the application, staff will inform the applicant of the denial and take no further action. Step 5B – ETA Finalization: With Council approval, the applicant shall pay any outstanding all required fees and staff will prepare the ETA forms, along with any conditions of approval, for the City Manager and property owner(s) signatures. The ETA will then be recorded with Grant County and the corresponding covenant will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must return the signed ETA to Construction Management within 45 days of the date of Council ETA approval. Failure to return by the deadline will result in loss of allocated ERUs unless the applicant has obtained Council approval for an extension. ETA Inaction and Returns: The terms of the ETA must be met , through service connection and/or meter installation, within 2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA shall be returned to the landowner and the City will record a release of the covenant. The ERUs will become eligible for use on other developments in the current year within city limits or the following year for UGA allocation. ETA Policy Effective ##.##.2025 Page | 10 of X COML Special Meeting 5-20-25, Page 15 of 31 Appendix B – Option 2 ERU Allocation by City Council Legislative Action This method of ERU allocation relies on our system models. The system models utilize the data from our installed infrastructure to estimate and evaluate the effects of new development. The estimates do not guarantee fire flow or available source and cannot be construed as a guarantee. Our model will require annual, ongoing, maintenance as new sources are brought online, new infrastructure installed, and environmental conditions fluctuate to ensure ERU allocation in the UGA does not put the City at risk of service disruption to existing customers both inside the city limits and in the UGA. A new “available” ERU allocation will be provided to Council annually. The average number of annual connections in the UGA from 2020-2024 is 21, which is 7.26% of total new connections (both within city limits and in the UGA) during the same time frame. Staff recommend allocating no more than 10% of annual total connections to the UGA to ensure our legal obligation to serve new development within City limits is secure. For example, if ERU allocation is projected at 275 ERUs for the following year, recommended allocation to UGA parcels would be 27 ERUs. Consideration will need to be given for number of ERUs based on type of development – one single family residential unit is equivalent to 1 ERU, but a single industrial or commercial development may account for many ERUs. If/when more sources or capacity becomes available, the City, through its modeling, will recalculate annual allowed new connections in the UGA. Step 1 – Application: The applicant formally makes a request for City Water and/or Sewer for specified parcels outside of the corporate limits by a letter from the property owner(s) to the Public Works Director. The letter shall include a narrative and conceptual site plan that describes the numbers of residential units to be served, commercial uses to be served, or industrial process volumes and fire flows to be served. The applicant shall include all materials as defined in Resolution #3717 or applicable city ordinance. Step 2 – Staff Processing: Staff review application based on Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area previously identified in the policy, addressing system capacity concerns (if any), fees required, and questions/concerns/comments pertaining to the specific application. A summary report is created to be provided to Council with the application for consideration of ERU allocation – which includes narrative analysis, proposed conditions of approval, and staff recommended action. This summary report will be presented to council in a ETA Policy Effective ##.##.2025 Page | 11 of X COML Special Meeting 5-20-25, Page 16 of 31 manner that blinds specific details to reduce the risk of any perception of bias entering into the Council determination. Step 3 – Council Action: Staff will bring forward all ETA applications for the City Council to consider. Council reviews the Staff summary reports and associated application materials for approval consideration of the Extra Territorial Agreement presented. When assigning ERUs to a proposed development, the City Council will consider reasonable criteria such as:  Distance from the City limits,  Distance from existing water/sewer infrastructure,  Impact on City services and road network,  Percentage of available capacity to be used by the development,  Council’s determined need for certain types of development to meet the needs of the City. For example, Council may give higher priority for a proposed development that includes primary industry that diversifies the City’s employment. As another example, the City Council may place a higher priority on housing types that are needed to keep pace with job and population growth.  Consistency with the City’s Comprehensive Plan, Water System Plan, Sewer System Plan, and other relevant long term planning documents.  Pressure and source dependency between zones  Known or projected new development within City limits (will require Comm Dev to supply data regularly) Step 4a – ETA Not Processed: If City Council denies, staff will notify the application of the denial and take no further action. Step 4b – ETA Approved: With council approval, the applicant shall pay all required fees and staff will prepare the ETA forms, along with any conditions of approval, for the City Manager and property owner(s) signatures. The ETA will then be recorded with Grant County and the corresponding covenant will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must return the signed ETA to Construction Management within 45 days of the date of Council ETA approval. Failure to return by deadline will result in loss of allocated ERUs unless the applicant has obtained Council approval for an extension. ETA Inaction and Returns: The terms of the ETA must be met, through service connection and/or meter installation, within 2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA shall ETA Policy Effective ##.##.2025 Page | 12 of X COML Special Meeting 5-20-25, Page 17 of 31 be returned to the landowner and the City will record a release of the covenant. The ERUs will become eligible for use on other developments in the current year within city limits or the following year for UGA allocation. ETA Policy Effective ##.##.2025 Page | 13 of X COML Special Meeting 5-20-25, Page 18 of 31 Appendix C – Option 3 Lottery Allocation This method of ERU allocation relies heavily on our system models. The system models utilize the data from our installed infrastructure to estimate and evaluate the effects of new development. The estimates do not guarantee fire flow or available source and cannot be construed as a guarantee. Our model will require annual, ongoing, maintenance as new sources are brought online, new infrastructure installed, and environmental conditions fluctuate to ensure ERU allocation in the UGA does not put the City at risk of service disruption to existing customers both inside the city limits and in the UGA. A new “available” ERU allocation will be provided to Council annually. The average number of annual connections in the UGA from 2020-2024 is 21, which is 7.26% of total connections during the same time frame. Staff recommend allocating no more than 10% of annual total connections to the UGA to ensure our legal obligation to serve new development within City limits is secure. For example, ERU allocation is projected at 275 ERUs for 2024, recommended allocation to UGA parcels would be 27 ERUs. Consideration will need to be given for number of ERUs based on type of development – one single family residential unit is equivalent to 1 ERU, but a proposed industrial or commercial development may account for 50 ERUs. Step 1 – Application: The applicant formally makes a request for City Water and/or Sewer for specified parcels outside of the corporate limits by a letter from the property owner(s) to the Public Works Director. The letter shall include a narrative and conceptual site plan that describes the numbers of residential units to be served, commercial uses to be served, or industrial process volumes and fire flows to be served. The applicant shall include all materials as defined in Resolution #3717 or applicable city ordinance. Step 2 – Staff Processing: Staff review application based on Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area previously identified in the policy, addressing system capacity concerns (if any), fees required, and questions/concerns/comments pertaining to the specific application. A summary report is created to be provided to Council with the application for consideration of ERU allocation – which includes narrative analysis, proposed conditions of approval, and staff recommended action. This summary report will be presented to council in a manner that blinds specific details to reduce the risk of any perception of bias entering into the Council determination. FOR COUNCIL CONSIDERATION: ETA Policy Effective ##.##.2025 Page | 14 of X COML Special Meeting 5-20-25, Page 19 of 31 Would you like applications sorted into categories and then the lottery drawings to occur for each category individually? For example, developments of fewer than 5 ERUs, 5-10 ERUs, 10- 20 ERUs? SFR, multifamily, commercial, industrial? If so, how would you like to allocate the ERUs available to each category? Or would you like to evaluate the number of applications in each category, determine the number to allocate to each, then have staff complete the lottery drawing? Step 3 – Lottery Allocation/Council Action: Staff take the blinded applications and enter the application numbers into a random lottery for allocation of up to 5 ERUs. If an application drawn is requesting less than 5 ERUs, the remaining ERUs will be left in the pool for allocation and additional applications will be drawn until the annual allotment is fully dispersed. The lottery results, the drawn application summary reports, and associated materials will be presented to City Council for approval of the Extra Territorial Agreement(s). Step 4 – ETA(s) Approved: With council approval, the applicant shall pay all required fees and staff will prepare the ETA forms, along with any conditions of approval, for the City Manager and property owner(s) signatures. The ETA will then be recorded with Grant County and the corresponding covenant will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must return the signed ETA to Construction Management within 45 days of the date of Council ETA approval. Failure to return by deadline will result in loss of allocated ERUs unless the applicant has obtained Council approval for an extension. ETA Inaction and Returns: The terms of the ETA must be met, through service connection and/or meter installation, within 2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA shall be returned to the landowner and the City will record a release of the covenant. The ERUs will become eligible for use on other developments in the current year within city limits or the following year for UGA allocation. ETA Policy Effective ##.##.2025 Page | 15 of X COML Special Meeting 5-20-25, Page 20 of 31 Definitions: Application Number – a number assigned by the City’s portal system. This identifier allows for applications to be referenced without providing full developer/development name. Development – any proposed plat, subdivision, binding site plan, or building permit request for single family residential, multifamily, commercial, or industrial uses. Equivalent Residential Units (ERU) – one ERU represents the amount of water used by one single-family residence for a specific water system. The demand of other customer classes can be expressed in terms of ERUs by dividing the demand of each of the other customer classes by the demand represented by one ERU. ERUs in the UGA are considered to have an average daily demand of 200 gallons per day (gpd) since City water shall only be supplied for potable use. Lateral – branch line extended off of main line to serve more than one single-family residence. Potable Water – water that is safe for consumption and meets state and federal standards; can come from surface or ground sources and is treated for various contaminants. Property Owner – means the property owner(s) and its authorized legal representative(s). Service Connection – service connections create a potential for service and do not necessarily result in immediate meter installation; service connections are typically one per single family residence or multifamily unit. Supply – water that is delivered to a water system by one or more supply facilities that may consist of supply stations, booster bump stations, and wells. Storage – water that is “stored” in a reservoir to supplement the supply facilities of a system and provides water supply for emergency conditions. ETA Policy Effective ##.##.2025 Page | 16 of X COML Special Meeting 5-20-25, Page 21 of 31  Extra Territorial Agreement (ETA) Policy City Council Ordinance ##### / Resolution #### Effective ##.##.2025 ETA Policy Effective ##.##.2025 Page | 1 of X COML Special Meeting 5-20-25, Page 22 of 31 Contents Preamble ....................................................................................................................................................... 3 Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area ... 3 Water ........................................................................................................................................................ 3 Wastewater............................................................................................................................................... 4 Annual Deadlines .......................................................................................................................................... 5 ETA Application and Evaluation .................................................................................................................... 6 Definitions ................................................................................................................................................... 10 ETA Policy Effective ##.##.2025 Page | 2 of X COML Special Meeting 5-20-25, Page 23 of 31 Preamble The City of Moses Lake is the primary purveyor of water and wastewater services within the city limits and within its water service area which includes the city’s Urban Growth Area (UGA). The City’s first responsibility is to its existing ratepayers and customers within the city limits. The City must ensure that existing water and wastewater infrastructure is adequately maintained and that system capacity for its existing residents and businesses is ensured for the long term. The city does not hold itself out as the sole water purveyor in the UGA and recognizes that other water purveyors provide water service within the UGA. The Growth Management Act encourages growth within city limits and urban growth areas. The City also encourages growth within the City and the UGA to increase the local housing inventory and allow for more primary industry employers. Allowing for more housing units to be built is essential in preventing housing unaffordability and keeping pace with the growing population. Encouraging and facilitating primary industry lifts and diversifies Moses Lake’s economy, brings in family-wage jobs, and provides economic mobility for our residents. Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area To assist with housing and job growth, the City can choose to provide water and wastewater utilities to new development in the UGA, either through annexation or what is known as extra territorial utility extension agreements or ETAs. ETAs are contracts through which the City can choose to provide water and/or wastewater utilities in the UGA without concurrent annexation and subject to additional conditions of service. Water The City recognizes the region’s limitations on and value of potable water. While the City continues to improve its system capacity through water conservation efforts and the acquisition of new water sources, providing water for new housing and business development in the UGA must be done carefully and according to the following primary principles and requirements: 1. The city water system has sufficient capacity to serve the added development without causing negative service impacts or disruption to existing customers both within the city limits and in the UGA. 2. The City will provide potable water only. ETAs and new connections in the UGA will not allow the use of City water for irrigation. Therefore, before the City will provide potable ETA Policy Effective ##.##.2025 Page | 3 of X COML Special Meeting 5-20-25, Page 24 of 31  water for new development in the UGA, the developer must adequately demonstrate in writing and to the City’s satisfaction that they can acquire water for irrigation from a reliable source. As a condition of the service agreement, the City will acquire the legal authority to access and inspect the receiving property throughout the term of the service contract to ensure irrigation is not connected to the City’s potable distribution system. Violation of this condition shall be enforced pursuant to City ordinance and shall include the City’s right to terminate water service upon discovery of an unauthorized connection or a property owner’s refusal to permit City inspection, in addition to fines and injunctive relief. 3. The City will charge the necessary application fees, system development charges, connection fees, capacity reservation fees, and rates to recover its long-term costs for providing water service in the UGA. Developer will pay for the installation of the necessary infrastructure to reach their development and provide service – this may include, but is not limited to, main lines, lateral lines, service lines, storage, system upgrades/upsizing, and all associated service connections. Infrastructure requirements are dependent upon the development proposed and may be onsite or offsite– City staff will identify the needed improvements based on plans submitted for review. Failure to supply sufficient plans may result in a delay in determination of required improvements. City may, at its sole discretion, conduct a rate study to adequately determine the cost of providing water in the UGA at the sole cost of the developer. 4. Property owner shall agree to grant the City power of attorney on its behalf to sign an annexation petition for the UGA properties being served, should annexation be considered in the future. 5. Limited Connection Window – as part of the application for service, the property owner must pay any required fees, rates, and costs as established by the City including a non- refundable capacity reservation fee, execute an ETA, and comply with the terms of the ETA which shall establish a deadline for connection to the City potable water system for the allocated and reserved Equivalent Residential Units (ERUs). Failure to meet that deadline will result in termination of the ETA and capacity reservation and any letter(s)/certificate(s) of water availability will be rescinded. All fees paid by property owner are non-refundable. Wastewater 1. The wastewater system must have sufficient capacity to serve the added development without causing service negative service impacts or disruption to existing customers both within the city limits and in the UGA. 2. The City will charge the necessary system development charges, connection fees, and rates to recover its costs for providing wastewater service in the UGA. Developer will pay for the installation of the necessary infrastructure to reach their development and provide service – this may include, but is not limited to, mains lines, lateral lines, lift stations, service lines, system upgrades/upsizing, and all associated service connections. ETA Policy Effective ##.##.2025 Page | 4 of X COML Special Meeting 5-20-25, Page 25 of 31  Infrastructure requirements are dependent upon the development proposed and may be onsite or offsite – City staff will identify the needed improvements based on plans submitted for review. Failure to supply sufficient plans may result in a delay in determination of requirement improvements. City may, at its sole discretion, conduct a rate study to adequately determine the cost of providing wastewater service in the UGA at the sole cost of the developer. 3. Property owner shall agree to grant the City power of attorney on its behalf to sign an annexation petition for the UGA properties being served, should annexation be considered in the future. 4. Limited Connection Window – as part of the application for service, the property owner must pay any required fees, rates, and costs as established by the City including a non- refundable capacity reservation fee, execute an ETA, and comply with the terms of the ETA which shall establish a deadline for connection to the City wastewater system for the allocated and reserved ERUs. Failure to meet that deadline will result in termination of the ETA and capacity reservation and any letter(s)/certificate(s) of wastewater availability will be rescinded. All fees paid by the property owner are non-refundable. Annual Deadlines Annual Deadline Action/Item Due September 15 System models are updated and available ERUs are provided to City Council; ERU capacity will be provided by zone with a projection for the next 5 years. Any vested development in the permitting pipeline will also be provided and subtracted from available capacity.1 November 1 Semiannual application deadline #1: ETA applications for consideration of allocation in December of same year. First City Council Staff will bring forward to Council all applications for Meeting in December approval/denial (but no later than December 15) January of the Following Construction Management will execute ETA with property Year owner(s) for approved applications. Community Development will begin Developer Agreement negotiations (if applicable) May 1st of the Following Semiannual application deadline #2: ETA applications for Year consideration in June of current year. Number of ERUs available 1 Identifying vested ERUS for permits in the pipeline for previous two years will take additional staff time to compile as historically the water availability letters/certificates were not required for all permits. ETA Policy Effective ##.##.2025 Page | 5 of X COML Special Meeting 5-20-25, Page 26 of 31  will be calculated using the previous September’s original allocation less any allocations for development within city limits or the UGA since that date. In the UGA the permitting authority is Grant County – not the City of Moses Lake – making it more difficult to monitor and ensure fees are paid prior to construction beginning. As such, staff recommend that ETA applications require payment of all associated fees (i.e. connection charges, system development charges, capacity reservation fees, etc.) as outlined in the policy at the time of ETA application. Additionally, staff support City Manager approval authority for any ETA application that is accompanied by a Grant County Health District public health emergency hookup request and proposed connection is within 660 feet of an existing main line. For any connection that requires extension of infrastructure to provide service, that cost is the sole responsibility of the applicant. ETA Application and Evaluation ERU allocation relies on the City of Moses Lake utility system models. The system models utilize the data from our installed infrastructure to estimate and evaluate the effects of new development(s). The estimates do not guarantee fire flow or available source and cannot be construed as a guarantee. Our model will require annual, ongoing, maintenance as new sources are brought online, new infrastructure is installed, and environmental conditions fluctuate to ensure ERU allocation in the UGA does not put the City at risk of service disruption to existing customers both inside the city limits and the UGA. Annually, staff will provide City Council with the projected system capacity for five years, by zone (factoring in connected zones). Available zone capacity will be reduced by vested development in the permitting pipeline.2 The City shall only allow UGA potable water connections, as such, UGA allocations will be based on an average daily demand of 200 gpd. UGA development will be required to bring an alternative irrigation source for any non-potable use. If/when more sources or capacity become available, the City, through its modeling, will recalculate annual allowed new connections in the UGA. 2 Identifying vested ERUS for permits in the pipeline for previous two years will take additional staff time to compile as historically the water availability letters/certificates were not required for all permits. ETA Policy Effective ##.##.2025 Page | 6 of X COML Special Meeting 5-20-25, Page 27 of 31 Step 1 – Application: The applicant formally makes a request for City water and/or wastewater for specified parcels outside of the corporate limits by a letter from the property owner(s) to the Public Works Director. The letter shall include a narrative and conceptual site plan that describes the numbers of residential units to be served, commercial uses to be served, or industrial process volumes and fire flows to be served. The applicant shall include all materials as defined in Resolution #3717 or applicable city ordinance. Step 2 – Evaluation: Staff reviews the formal requests and classifies them based on the criteria below: CLASSIFICATION DESCRIPTION CLASS 0 The parcel(s) are contiguous (touching/abutting) to existing corporate limits of IN/ABUTTING CITY the City. Water and/or wastewater mains have already been extended to the LIMITS area and tapping into the main by a lateral is all that is required for connection. These requests for water and wastewater will require annexation as part of service. Irrigation by means other than City potable water is preferred. No ETA to be issued. Applications accompanied by a Grant County Health District public health emergency hookup request may have an ETA executed while the property owner works through the process of annexation. CLASS 1 The parcel(s) are not contiguous to existing corporate limits of the City. PUBLIC HEALTH However, the application is accompanied by a state or local agency public health emergency hookup request. Water and/or wastewater mains have already been extended to the area and tapping into the main by a lateral is all that is required for connection. Irrigation by means other than City potable water is required. Residential Lot Example: An existing home in the UGA has water from a well and a septic system. The existing septic system fails, and the Department of Health declares it a public health emergency and refers them to the City to connect. There is an existing main along the frontage of the property and the resident can tap into the main for their service line. CLASS 2 The parcel(s) are not contiguous to existing corporate limits of the City. SHORT EXTENSION However, the parcel(s) have a short, developer provided, water extension, sewer extension, and/or reservoir placement, with extensions of 0-660FT (1/8 mile) to connection point, with no pressure or fire flow capacity issues. Consideration shall be given if parcels are touching or abutting other parcels that are contiguous to existing corporate limits but not yet annexed and developer can secure commitment by those parcel(s) to annex to the City, thereby rendering this a Class 0 application. Irrigation by means other than City potable water is required. Residential Lot Example: New house in UGA has City water main on their frontage street and they are requesting water service. An existing home with a ETA Policy Effective ##.##.2025 Page | 7 of X COML Special Meeting 5-20-25, Page 28 of 31  failing septic system, has sewer main on their frontage street and they are requesting sewer service. Property owner/developer will be required to complete main extension to their property and install service line at their sole cost. Applications for utility connection within the UGA, that cannot be classified as outlined above, will be evaluated and presented to City Council for consideration as detailed in Step 3B (below). Step 3A – Classified Request Staff Processing: If the request for connection can be classified as 0, 1, or 2 as outlined above, staff shall contact the applicant and request they complete the application process by furnishing any required documents not already provided. This may include, but is not limited to, materials as defined in Resolution #3717 and any applicable ordinance, Extra Territorial Agreement Form, and this ETA Policy. Staff will review the application and prepare a Staff Report which includes a narrative analysis, proposed conditions of approval, and staff recommendation to the Council. The ETA application will be presented to Council for action/consideration. Step 3B – Non-classified Request Staff Processing: For applications that do not meet the classification criteria to be considered a class 0, 1, or 2 application, staff will review the application based on Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area previously identified in the policy, addressing system capacity concerns (if any), fees required, and questions/concerns/comments pertaining to the specific application. A summary report is created to be provided to Council with the application for consideration of ERU allocation – which includes narrative analysis, proposed conditions of approval, and staff recommended action. Step 4 – Council Action / ERU Allocation: Council reviews the Staff Report and associated application materials for approval consideration of the Extra Territorial Agreement presented. Priority ERU allocation will be given to applications classified as 0, 1, and 2, in that order and will be approved or denied by the City Manager. For requests that do not meet those classifications, City Council will determine ERU allocation by reviewing the staff summary report and will consider reasonable criteria such as:  Distance from the City limits,  Distance from existing water/sewer infrastructure,  Impact on City services and road network, ETA Policy Effective ##.##.2025 Page | 8 of X COML Special Meeting 5-20-25, Page 29 of 31   Percentage of available capacity to be used by the development,  Council’s determined need for certain types of development to meet the needs of the City. For example, Council may give higher priority for a proposed development that includes primary industry that diversifies the City’s employment. As another example, the City Council may place a higher priority on housing types that are needed to keep pace with job and population growth.  Consistency with the City’s Comprehensive Plan, Water System Plan, Sewer System Plan, and other relevant long term planning documents.  Capacity by zone or connected zones – considers pressure and source dependency between zones  Known or projected new development within zones (will require Community Development to supply data regularly) Step 5A – ETA Not Processed: If the City Council denies the application, staff will inform the applicant of the denial and take no further action. Step 5B – ETA Finalization: With Council approval, the applicant shall pay any outstanding fees and staff will prepare the ETA forms, along with any conditions of approval, for the City Manager and property owner(s) signatures. The ETA will then be recorded with Grant County and the corresponding covenant will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must return the signed ETA to Construction Management within 45 days of the date of Council ETA approval. Failure to return by the deadline will result in loss of allocated ERUs unless the applicant has obtained Council approval for an extension. ETA Inaction and Returns: The terms of the ETA must be met, through service connection and/or meter installation, within 2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA shall be returned to the landowner and the City will record a release of the covenant. The ERUs will become eligible for use on other developments in the current year within city limits or the following year for UGA allocation. ETA Policy Effective ##.##.2025 Page | 9 of X COML Special Meeting 5-20-25, Page 30 of 31 Definitions Application Number – a number assigned by the City’s portal system. This identifier allows for applications to be referenced without providing full developer/development name. Development – any proposed plat, subdivision, binding site plan, or building permit request for single family residential, multifamily, commercial, or industrial uses. Equivalent Residential Units (ERU) – one ERU represents the amount of water used by one single-family residence for a specific water system. The demand of other customer classes can be expressed in terms of ERUs by dividing the demand of each of the other customer classes by the demand represented by one ERU. ERUs in the UGA are considered to have an average daily demand of 200 gallons per day (gpd) since City water shall only be supplied for potable use. Lateral – branch line extended off main line to serve more than one single-family residence. Potable Water – water that is safe for consumption and meets state and federal standards; can come from surface or ground sources and is treated for various contaminants. Property Owner – means the property owner(s) and its authorized legal representative(s). Service Connection – service connections create a potential for service and do not necessarily result in immediate meter installation; service connections are typically one per single family residence or multifamily unit. Supply – water that is delivered to a water system by one or more supply facilities that may consist of supply stations, booster bump stations, and wells. Storage – water that is “stored” in a reservoir to supplement the supply facilities of a system and provides water supply for emergency conditions. ETA Policy Effective ##.##.2025 Page | 10 of X COML Special Meeting 5-20-25, Page 31 of 31