08-24-10 MinutesYELM CITY COUNCIL REGULAR MEETING
TUESDAY, AUGUST 24, 2010 MINUTES
Mayor Harding called the meeting to order at 7:00 p.m.
2. Roll Call. Present: Don Miller Joe Baker, Bob Isom, Tracey Wood, John
Thompson and Russ Hendrickson. Mike McGowan was excused.
3. Agenda Approval
10-61 MOTION BY BOB ISOM APPROVING THE AGENDA AS PRESENTED.
CARRIED.
4. Special Presentations- none scheduled
5. Public Comment.
Diane D'Acuti, 93~d Ave, asking Council if they would consider drilling any new
wells at a deeper depth to avoid any possible interference with water sources
outside the city. Mayor Harding responded that the current new well was drilled
at a depth of 800 ft with seals installed at 300 ft as not to affect those layers
above.
6. Consent Agenda Minutes -Regular Meeting August 10, 2010, Study Session;
July 28, 2010
Payables -Checks 54127-54199, Totaling $1,113,648.31
10-62 MOTION BY DON MILLER APPROVING CONSENT AGENDA ITEMS AS
PRESENTED. CARRIED.
Mayor Harding reviewed the speaker cards and asked Cynthia Schmier if the
topic she wished to address was on the agenda.
Cynthia Schmier, Bald Hills resident and owner of city residential rentals and
commercial building on Yelm Ave questioned allotment of 215 gallons per day
that she read about in the newspaper. (Mayor stated that the 215 gallons is not
an allotment but is a historical average of household wafer consumption over a
period of time) She added that her rental property residents stated they are
moving out because they cannot afford water in Yelm. Stephanie Ray stated
that these figures (215) are not an allotment, but are an average usage
calculated by total consumption divided by the number of meters to come up
with the average household use. Cynthia still questions the data and compares
it fo a survey she researched on another government site comparing 123
gallons to 215 gallons per unit in Yelm. She questions if citizens will be able to
afford to live in Yelm including military families who have their own figures for
calculating allotments for living off base. She understands conservation but
questions development of policies that limit those that are able to move into
Yelm. Cynthia continued to express concern sfating that her irrigation meter was
recently turned off because she exceeded the irrigation allotment. Mayor
Harding offered to meet with Cynthia at another time to address her questions
and to further explain the formula for both residential and irrigation use.
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~V,~~~E~
Public Hearing: Water System Development Charge Increase and Revision
to Definition of an Equivalent Residential Unit. Mayor Harding opened the
Public Hearing at 7:15 pm stating the purpose of the hearing was to discuss the
proposed Water System Development Charge.
Stephanie Ray explained that the WSDC is the amount charged for purchase of
connection to water service at the time the development permit is issued. The
total amount is based on ERU from historical data of average of household use.
Yelm has identified capital needs and the financial model to support new and
existing infrastructure as well as new capital debt and existing debt. Fee has not
been changed since 2003. Further proposed this fee to be increased yearly
based on consumer price index (2-3 percent).
Second part of the hearing is to address the definition of an equivalent
residential unit. This portion amends the code to reflect an ERU value.
Previously using 900, now propose to change to 875 cu ft per month based on
fine-tuning of the formula. Both of these increases are designed for new
construction which is buying into the existing system thereby residents are not
subsidizing new construction.
Questions. Comments: Development is paying for development on level field.
Noted that this is a significant jump from previous fee, have residents been
picking up excess costs previously? Stephanie response that there have not
many capital improvements started in recent years.
Mayor Harding called for questions from audience. Seeing none, Mayor Harding
closed the hearing at 7:24 pm.
8. New Business
a. Ordinance No. 926 Amending Yelm Municipal Code, Chapter 13.04, Water
System Development Charge.
10-63 MOTION BY JOHN THOMPSON ADOPTING ORDINANCE NO. 926
AMENDING CHAPTER 13.04 YMC INCREASING THE WATER SYSTEM
DEVELOPMENT CHARGES EFFECTIVE SEPTEMBER 8, 2010. CARRIED.
Councilmember Isom added he is assuming that this ordinance put into place
methodology to prevent this type of substantial increase in the future.
b. Ordinance No. 927 Amending YMC Chapter 13.04 and 13.08 Revising the
Value of an Equivalent Residential Unit (ERU) Staff Report has been given.
10-64 MOTION BY JOHN THOMPSON ADOPTING ORDINANCE NO. 917
AMENDING YMC CHAPTER 13.04 AND 13.08 REVISING THE VALUE OF
EQUIVALENT RESIDENTIAL UNIT. CARRIED.
Councilmember Isom's question to staff answered by Stephanie Ray. The ERU
formula will be reviewed every 6 years.
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c. Legislative Services Contract with Capitol Strategies and Gjurasic Public
Affairs for $36,000 to Retain Funding for City of Yelm Varied Projects.
Shelly Badger presented the renewal of lobbyist contract that has been
successful in obtaining funding in the past including: reclaimed water funding
and SR510 Loop. The new contract would specifically target the remainder of
the Loop project during the legislative session, September 1, 2010 through May
2011. Lobbyist would work to obtain funding to monitor water issues and identify
additional funding opportunities. Service will provide monthly summaries and
communicate regularly. Paid through arterial street project fund. Councilmember
Thompson added that lobbying is a necessary process to secure state and
federal funding and has proven to be a valuable investment return.
MOTION BY BOB ISOM AUTHORIZING MAYOR HARDING TO SIGN
10-65 LEGISLATIVE CONTRACT TO ENGAGE DEVOR GJURASIC AND
KATHLEEN COLLINS TO LOBBY ISSUES OF BENEFIT TO CITY OF YELM
FROM SEPT 1 2010 TO MAY 31 2011 IN THE AMOUNT OF $36,000.
CARRIED.
EXECUTIVE SESSION. Mayor Harding announced that Council would be going
9. into Executive Session at 7:34 to discuss potential litigation and would return at
8:34 pm to resume Council meeting. Council left the chambers.
Mayor Harding closed the Executive Session at 8:34 pm and resumed the
regular Council meeting in the Council Chambers.
Mayor and City Council Reports. Agenda item was moved forward to
11. accommodate arrival of Jim Nelson.
Councilmember Baker reported from Intercity Transit on the passage of the tax.
Councilmember Hendrickson thanked Mayor Harding for hosting annual City
picnic.
10. Old Business
Ordinance No. 922 Water Revenue Bond
Ordinance No. 922 Revenue Bond.
Shelly Badger introduced Jim Nelson from Martin Nelson Company who has
worked with the City of Yelm on previous bond issues including the Public
Safety Building, 2003 Bond and Killion Road LID. Jim Nelson provided handouts
explaining the summary of events and historical data used to negotiate the
Bond as well as the payment schedule. He congratulated the City for their A
plus rating for financing 10 million at 4.36 percent fora 30 year period. Special
thanks to staff who participated in the application process with Standards and
Poors: Shelly Badger, Grant Beck, Stephanie Ray and Tim Peterson.
Bond insurance was not required because of high rating. City of Yelm chose an
interest only payment for the first few years with the first interest payment due in
2010 and the first principal payment due in 2014.
Key factors contributed to high rating: strong financial practices, water rates
study, proximity to large cities, small debt ratio and experienced staff operating
in efficient manner historically. Shelly Badger added that the net proceeds of
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this 10 million Bond will be used to finance water construction fund spending on
water projects; downtown well, SW well, water rights acquisition and water
rights mitigation as described in the water system plan.
Questions, Comments. We are committed to this Bond on approval with a fixed
interest rate. Prepayment is an option starting in 2020. Proceeds dedicated to
Water Construction Fund September 8, 2010. Finance over 30 years a good
choice for lower payment and flexibility for payment.
10-66 MOTION BY BOB ISOM ADOPTING ORDINANCE NO. 922 WATER
REVENUE BOND AUTHORIZING THE ISSUANCE AND SALE OF WATER
REVENUE BONDS IN THE PRINCIPAL AMOUNT OF 10,965,000 FOR THE
COMPLETION OF WATER INFRASTRUCTURE IMPROVEMENT S AS
IDENTIFIED IN THE 2008-2015 WATER SYSTEM PLAN. CARRIED.
12. Correspondence. There was no correspondence.
13. Adjourn: 8:50 p.m.
on Har iii ;Mayor
Attest ~ ~'
Janine hnepf, City Clerk
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