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09 12 2017 Agenda Packet AGENDA YELM CITY COUNCIL MEETING TUESDAY, SEPTEMBER 12, 2017 6:00 P.M. Website Viewing: Clicking on agenda items will open associated d resolutions, ordinances, etc. Note: some agenda items may not have attachments. Call to Order 1. Roll Call 2. Agenda Approval ACTION 3. Special Presentations- 4. Public Comment 5. the meeting recorder. Comment topics should not appear elsewhere on the agenda. Time (three minutes per speaker) and the number of speak are limited and may be adjusted to meet agenda requirements. Consent AgendaACTION 6. Minutes; a. Regular meeting Payables; b. Checks # Interlocal Agreement between the City of Yelm and Yelm Community c. Schools for the collection, distribution, and expenditure of school impact fees Public Hearing- Ordinance No. 1027 Amending Chapter 13.10.050 YMC 7. relating to Stormwater Management Utility New Business 8. Ordinance No. 1027 Amending Chapter 13.10.050 YMC relating to ACTION a. Stormwater Management Utility Presenter: Chad Bedlington, Public Works Director Attachments: Staff Report, Ordinance No. 1027 ACTION b. for continuation of water rights Presenter: Chad Bedlington, Public Works Director Attachments: Staff Report, Interlocal Agreement Ordinance No. 1028, Amending Title 3 of the Yelm Municipal Code, ACTION c. Financial Policies Presenter: Michael Grayum, City Administrator Attachments: Staff Report, Ordinance No. 1028 Old Business- 9. none scheduled Department Updates- 10. Council and Mayor- 11. Councilmember Curry represents Yelm on the following committees. Thurston County Solid Waste Yelm Finance Department Advisory Committee (SWAC) Committee Yelm Public Safety Committee Thurston County Fire Authority Liaison Councilmember Carmody represents Yelm on the following committees. Intercity Transit Board Yelm Finance Department Committee Yelm Community & Economic Development Committee Councilmember Littlefield represents Yelm on the following committees. Yelm Community & Economic Development Committee Councilmember Stillwell represents Yelm on the following committees. Thurston County EDC Board Yelm Finance Department Committee Yelm Public Safety Committee Councilmember Wood represents Yelm on the following committees. Thurston Regional Planning Yelm Public Works Committee Transportation Council (TRPC) TComm 911 Admin Board Councilmember DePinto represents Yelm on the following committees. Thurston County Law and South Thurston Economic Justice Development Initiative group Yelm Public Safety Committee (STEDI) Yelm Community & Economic Development Committee Councilmember Hendrickson represents Yelm on the following committees. Thurston County EMS-Medic Yelm Emergency Operations OneBoard Yelm Public Works Committee Mayor Foster represents Yelm on the following committees. Yelm Community & Economic Yelm Finance Department Development CommitteeCommittee Yelm Public Works Committee Thurston Regional Planning Yelm Emergency Operations CouncilBoard South Sound Military and Nisqually River Council Community Partnership Community Investment Partnership (CIP) Executive Session- 12. Council will go into a 60 minute Executive Session for the purpose of discussing the proposals made in collective barga negotiating sessions. RCW 42.30.140(4)(a)(b). Correspondence 13. (Correspondence is available upon request) Center. Adjourn 14. Upcoming Meetings Special Workshop, Tuesday, September 11, 2017, 5:00 pm, Public S Regular City Council Meeting, Tuesday, September 26, 2017, 6:00 pm, Public Safety Building Council Study Session, Tuesday, October 3, 2017, 6:00 pm, Public Safety Building Regular City Council Meeting, Tuesday, October 10, 2017, 6:00 pm, Public Safety Building CITY OF YELM MEETING INFORMATION All regular Yelm City Council meetings are audio recorded. A $5.00 per CD (prepaid) fee is required. For information about obtaining a copy of the pedings, please call 360.458.8402. Public comments are welcome. However, in order to proceed with s items the allowable time per speaker is limited to 3 minutes and the number of speak limited to five. Comments during the public comment portion of t be associated with measures or topics appearing elsewhere on the not address topics for which public hearings have been conducted or are anticipated disabilities. If you are a person with a disability and in need accommodations to conduct business or participate in government processes or activities, please contact Lori Mossman, at 360.458.8402 at least four (4) working days prior to the scheduled event. The City of Yelm is an equal oppor employer. The Preliminary Agenda and Approved Council Minutes are available at . www.yelmwa.govFor information on the Americans with Disabilities Act and the T Statement, click this link http://www.ci.yelm.wa.us/human-resources/. Agenda Item 6a 8-22-17 Minutes Page 1 of 2 YELM CITY COUNCIL REGULAR MEETING TUESDAY, AUGUST 22, 2017 MINUTES PUBLIC SAFETY BUILDING 206 MCKENZIE AVE. YELM, WA 1. Mayor Foster called the meeting to order at 6:01 pm. 2. Roll Call Present: EJ Curry, Jennifer Littlefield, Tracey Wood, Joe DePinto and Russ Hendrickson. Excused: Molly Carmody. 17-197 MOTION BY RUSS HENDRICKSON TO EXCUSE COUNCILMEMBER TAD STILLWELL FROM THE MEETING. SECONDED BY TRACEY WOOD. MOTION CARRIED. 3. Agenda Approval 17-198 MOTION BY TRACEY WOOD APPROVING THE AGENDA AS PRESENTED. SECONDED BY EJ CURRY. MOTION CARRIED. 4. Special Presentations- none scheduled 5. Public Comment- no comments 6. Consent Agenda a. Minutes Regular meeting August 8, 2017. b. Payables Checks # 17-199 MOTION BY TRACEY WOOD TO APPROVE THE CONSENT AGENDA. SECONDED BY RUSS HENDRICKSON. MOTION CARRIED. 7. Public Hearing none scheduled 8. New Business a. Cullens Road Overlay Bid Award 17-200 MOTION BY RUSS HENDRICKSON AUTHORIZING MAYOR FOSTER TO SIGN AN AGREEMENT IN THE AMOUNT OF $158,500.00 WITH RH2, INC. FOR PRELIMINARY DESIGN AND LOCATING SERVICES FOR THE SOUTHEAST RESERVOIR PROJECT. SECONDED BY TRACEY WOOD. MOTION CARRIED. 9. Old Business none scheduled 10. Department Updates- Chief Stancil updated the Council on the traffic congestion thr was due to people returning from watching the eclipse and fires Rochester, and also from people returning from watching the ecli 8/21. Michael Grayum updated the Council on the following: The second Economic Development Summit was held on August 15, at 2:00 pm at the Yelm Community Center. The attendance was low. Council to prioritize the list for upcoming Study Sessions at th 5, 2017 Study Session. 8-22-17 Agenda Item 6a 8-22-17 Minutes Page 2 of 2 Joint School District/Council meeting on September 14, 2017 at 5 the Yelm Community Center. Michael t the Finance Director. Hired an interim temporary Finance Director to start preparing r the 2018 Budget. Passport days and hours will be changing to Tuesday and Wednesda 8:00 am to 1:00 pm. Michael will be attending the Washington City Managers Conferenc Spokane Wednesday through Friday and out of the office the follo week. 11. Mayor and Council Initiatives Councilmember Curry attended the Yelm Public Safety Committee meeting and Greet Councilmember DePinto attended the South Thurston Economic Development Initiative group (STEDI), the Yelm Public Safety Commission meet Yelm Finance Department Committee meeting. Councilmember Hendrickson attended the Greet for the Finance Director and the Midday Lions Poker Run last wee Mayor Foster wedding. Taegan and Luke were married yesterday. There will be an Emergency Manageme LDS Church this Saturday, Public Works Director Chad Bedlington Foster will be attending and presenting at 11:30 am and 1:30 pm. an all staff BBQ at the Public Works Shop on August 30. 12. Executive Session no session scheduled. 13. Correspondence included 17-201 MOTION BY TRACEY WOOD TO ADJOURN, SECONDED BY RUSS HENDRICKSON. MOTION CARRIED. 14. Adjourned 6:47 pm. __________________________ Attest: _________________________ JW Foster, Mayor Lori Mossman, Cit These minutes record the official actions of the Yelm City Counc available on the city website at www.ci.yelm.wa.us. 8-22-17 Agenda Item 6c Interlocal Agmt between the City of Yelm and Yelm Community Schools Page 1 of 6 IA NTERLOCAL GREEMENT CY,W B ETWEEN THE ITY OF ELMASHINGTON YCS AND ELM OMMUNITY CHOOLS THIS AGREEMENT is entered into this ___ day of _____________, 2017, by and between the City of Yelm (hereinafter "City") and Yelm Community Schools (hereinafter "District"). WHEREAS, the Washington State Legislature passed the Growth Management Ac Chapter 36.70A RCW, and Chapter 82.02 RCW (hereinafter "Act"), which authorizes the collection of impact fees on development activity to provide pub new growth and development; and WHEREAS, the Act permits the collection and expenditure of impact fees on facilities which are addressed by a capital facilities element of a comprehensive land use plan adopted under the Act; and WHEREAS, in 2016, the District prepared a capital facilities plan, and authorizati collect and expend fees is contingent upon the City adopting the as part of the City's Comprehensive Plan, all as required by RCW 36.70A.070, and on the Plan's adherence with the statutory requirements of the Act; and WHEREAS, the City has adopted Section 18.16.090 YMC, which describes the features of the school impact fee program and allows the District to receive and expend school impact fees in conformance with the Act and the City has adopted by reference the Districts Capital Facilities Plan as part of the Citys Comprehensive Plan; and WHEREAS,the City and the District have entered into this Interlocal Agreement pursuant to Chapter 39.34 RCW, for the purposes of setting forth the duties and responsibi of the parties with regard to the administrating and distributinschool impact fees; NOW, THEREFORE, in consideration of the mutual promises herein, the parties agre follows: I. GENERAL AGREEMENT The City and the District agree to comply with the terms of this Agreemen the collection, distribution, and expenditure of school impactfees. II. RESPONSIBILITIES OF THE DISTRICT As a condition of the interlocal agreement the District, by and through its officials, employees, agents, and representatives, agrees to: Agenda Item 6c Interlocal Agmt between the City of Yelm and Yelm Community Schools Page 2 of 6 A. On or before April 1st of each calendar year, submit to the City a six(6) year capital facilities plan or an update of the previously adopted p an impact fee schedule which meets the requirements of the Act a impact fee code. B. Establish and maintain impact fee accounts as required by RCW 82.02.070. C. Properly expend and account for impact fees as required in RCW 82.02.050(4) and 82.02.070(2). D. Encumber and expend impact fees only as provided in RCW 82.02.070(3), and where the District has extraordinary and compelling reasons for nonc with this statute, the District shall identify such reasons in w City Council. E. Refund impact fees and interest earned on impact fees when a ref required pursuant to RCW 82.02.080, as written or hereafter amended. III. RESPONSIBILITIES OF THE CITY The City, by and through its officers, officials, employees, age agrees to: A. On behalf of the District, collect impact fees from developers under the school impact fee code and this Agreement. B. On behalf of the District, notify property owners of refunds und 82.02.080. C. Make timely payments of refunds due under RCW 82.02.080, togethe interest which may be due thereon. D. Review and approve as to form all covenants and declarations of these documents are required to maintain exemptions from payment fees. E. Maintain all accounts and records necessary to ensure compliance with this Agreement, the school impact fee code, and Chapter 82.02 RCW. F. Provide a consolidated appeal process by which an aggrieved part the impact fee or independent fee calculation. G. Transfer all impact fees collected pursuant to this agreement to the District on a monthly basis. Agenda Item 6c Interlocal Agmt between the City of Yelm and Yelm Community Schools Page 3 of 6 IV. AUDIT A. Both party's records and documents with respect to all matters c Agreement shall be subject to inspection, review, or audit by th by an appropriate state agency. B. The District agrees to cooperate with any monitoring or evaluati conducted by the City that pertain to the subject of this Agreement. Except any documents subject to the attorney-client privilege the District agrees to allow the City, or appropriate state agencies and/or any of their employees, age representatives to have full access to and the right to examine business hours, all of the District's records with respect to al this Agreement. The City and/or any of its employees, agents, or representatives shall be permitted to audit, examine, and make excerpts or trans records and to make audits of all invoices, materials, payrolls, matters covered by this Agreement. The City will give fifteen days advance notice to the District office of fiscal audits to be conducted. The results and records of said audit shall be maintained and di accordance with Chapter 42.56 RCW. C. The District and the City shall provide to the other party excerpts, if any, from the annual audit conducted by the Office of the State Auditor re collection, expenditure, transfer, refund, or calculation of impact fees in preceding fiscal year. The parties shall provide such excerpts, if any, to the other party not less than ninety (90) days following the completion of such D. The parties agree to cooperate with any monitoring or evaluation activities conducted by the the other party that pertain to the subject of V. INDEMNIFICATION, HOLD HARMLESS, AND WAIVER A. The District shall, at its own cost and expense, protect, defend hold harmless the City, its officers, employees, and agents, fro costs, claims, judgments or awards of damages, including attorne out of or in any way resulting from the acts or omissions of the officers, employees or agents, relating to the District's implem school impact fee program, performance of the duties set forth in Section I of this Agreement, or compliance with the terms of the school impaccode. B. The District further agrees that the District shall, at its own costs and exp protect, defend, indemnify, and hold harmless the City, its offi and agents from any and all costs, claims, judgments, or awards Agenda Item 6c Interlocal Agmt between the City of Yelm and Yelm Community Schools Page 4 of 6 including attorney fees, arising out of or in any way resulting f regarding the improper collection of impact fees, improper calcu fees, the propriety or rejection of an independent fee calculati refund impact fees, or failure to refund interest on such impact but not limited to a determination that impact fees from develop that was not completed are not refundable because the funds were expe encumbered by the District, whether or not the District's determ made in good faith. Nothwithstanding any language to the contrary, the District shall not be obligated to indemnitfy and hold harmless the City, its officers, employees, and agents arising from negligence of the City in the of the school impact fee code and any failure of the City to follow its procedures for adoption of an school Impact fee ordinance or amendment thereto. C. The District's duties to the City under this Section shall not b extinguished by the prior termination of this Agreement pursuant V. VI. TERMINATION A. The authorization to receive and collect school impact fees under this Agreement may be terminated without cause by the City, in whole any time, but only upon the repeal or invalidation of the schoolcode. All other obligations under this Agreement shall remain in effectil both of the following conditions shall have been satisfied: 1. The City or the District provides written notice that this Agree being terminated; and 2. The District no longer retains unexpended or unencumbered impact and interest earned thereon. B. The District shall, upon the repeal of the school impact fee code and/or termination of this Agreement, either properly expend or refund unexpended or unencumbered impact fees together with interest ea thereon pursuant to Chapter 82.02 RCW. VII. MODIFICATION No changes or modifications of this Agreement shall be valid or party unless such changes or modifications are in writing and ex Agenda Item 6c Interlocal Agmt between the City of Yelm and Yelm Community Schools Page 5 of 6 VIII. INTEGRATION This Agreement, together with the school impact fee code, contains all the terms and conditions agreed upon by the parties. No other understandings, regarding the subject matter of this Agreement shall be deemed t IX. SEVERABILITY In the event that any term or condition of this Agreement or app person or circumstances is held invalid, such invalidity shall n conditions or applications of this Agreement which can be given invalid term, condition or application. To this end, the terms Agreement are declared severable. X. RIGHTS OF OTHER PARTIES It is understood that this Agreement is solely for the benefit o and conveys no right to any other party. XI. DISPUTES Jurisdiction of any dispute arising under this Agreement shall bThurston County Superior Court, and the substantially prevailing party shall be costs and reasonable attorney fees. XII. GOVERNING LAW AND EFFECTIVE DATE This Agreement shall be construed and enforced in accordance wit and performance hereof shall be governed by, the laws of the Sta Agreement shall become effective following occurrence of the following: A. Adoption of the school impact fee code by the City; B. Approval of this Agreement by the official action of the governi of the parties hereto; and C. Execution of this Agreement by the duly authorized representativ parties hereto; and XIII. ADMINISTRATION A. The City's representative for purposes of administering this Agr Community Development Director or his/her designee whose address City Hall, 105 Yelm Avenue West, Yelm WA 98597. Agenda Item 6c Interlocal Agmt between the City of Yelm and Yelm Community Schools Page 6 of 6 B. The District's representative for purposes of administering this Superintendent or his/her designee whose address isc/o Yelm Community Schools, 107 1st Street North, Yelm WA 98597. XIV. WAIVER OF DEFAULT Waiver of any default in the performance of this Agreement shall n waiver of any subsequent default. Waiver or breach of any provi shall not be deemed to be waiver of any other or subsequent brea construed to be a modification of this Agreement. IN WITNESS WHEREOF, the undersigned have executed this Agreement set forth below. YELM COMMUNITY SCHOOLS NO. 2 CITY OF YELM ____________________________________ Brian Wharton,Superintendent J.W. Foster, Mayor Date: ________Date: __________ Agenda Item 7 Public Hearing Notice /z·ä šE —;Œ’ tÒ,Œz- ‘š©‰­ 5;¦©·’;“· Physical Address: 901 Rhoton Road SE Mailing Address: 105 Yelm Ave West Yelm, WA 98597 (360) 458-8406 Fax: (360) 458-8417 Web: www.ci.yelm.wa.us Yelm City Council Notice of Public Hearing ORDINANCE NO. 1027 The Yelm City Council has scheduled a public hearing to receive public comments on Ordinance No. 1027. to YMC 13.10.050 Stormwater Rate Review & Recommendation for Rate Adjustment 6:00 PMTuesday, September 12, 2017 The hearing is scheduled for on and will take place in Council Chambers at the Yelm Public Safety Building, 206 McKenzi For additional information, please contact Chad Bedlington, Publ12. Written comments will be received up to the close of the public submitted at the hearing, or may be mailed to City of Yelm, 105 Yelm Ave West, Yelm WA 98597. are a person with a disability and in need of reasonable accommo participate in government processes or activities, please contac least four (4) working days prior to the scheduled event. The C provider and employer. For more information on the Americans with Disabilities Act and website http://www.ci.yelm.wa.us/human-resources/ Lori Mossman, City Clerk Published: Nisqually Valley News, August 25, 2017 & September 1, 2017 PLEASE DO NOT PUBLISH BELOW THIS LINE Distribution: City Council Packets: Mayor: JW Foster Councilmembers: EJ Curry Molly Carmody Jennifer Littlefield Tad Stillwell Tracey Wood Joe DePinto Russ Hendrickson Newspaper of Record Nisqually Valley News Posted Yelm City Hall Yelm Timberland Library Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 1 of 9 City of Yelm STAFF REPORT To: Mayor JW Foster Yelm City Council From: Chad Bedlington, Public Works Director Maryanne Zukowski PE, Public Works Manager Date September 1, 2017 (for September 12, 2017 City Council Session) Subj: Stormwater Rate Analysis& Recommendation for Rate Adjustment Attach:Ordinance 1027(RevisingYMC 13.10.050 – Service Charge Rates) Recommendation Adopt Ordinance 1027whereby creating new Monthly Stormwater Service Charge Rates to begin January 1, 2018.No other changes to YMC Chapter 13.10 is proposed. Introduction In 1999 the City of Yelm adopted Chapter 13.10 intoits municipal code whereby creating a stormwater utility fund (enterprise fund) in addition to outliningregulatory requirements and service charge rates. YMC 13.10.050 describes the service charges and are outlined in Table 1.The stormwaterfund is considered an Enterprise Fund so any revenues collected from service charges or fees can only be used for operational and capital needs relating to stormwater management. Since creation of the fund and adoption of the code, no analysis of the rates, nor changes to them (increase or decrease) havebeen executed. TABLE1– SERVICE CHARGE RATES Monthly Service Charge Per Rate Category% Impervious Unit/Gross Acre Single-family or duplexN/A$2.50 per unit Multiple-familyN/A$1.25 per unit CondominiumN/A$2.50 per unit Commercial/ Industrial-light0–32% of site imperv.$4.00 base rate and $1.00 per acre Commercial / Industrial-moderate33–66% of site imperv.$4.00 base rate and $1.20 per acre Commercial / Industrial-heavy67–100% of site imperv.$4.00 base rate and $1.40 per acre Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 2 of 9 PublicWorks completed a review and analysis of the City’s stormwater rates as part of an on-going effort this year to comprehensively review all utility rates charged to our customers. The following key areas were reviewed in the analysisto provide direction for the study: Evaluate adequacy of stormwater utility funding to support current and future projects, Determine funding allocations(where and what stormwater funds are being used for) from the stormwater fund and make any necessary corrections to how those allocations are distributed, Improve and Maintain Operation and Maintenance (O&M) funding needs, Reduce any General Fund subsidy as applicable, Evaluate comparable stormwater utilities to determine if our rates are consistent with other agencies regionally and/or ofsimilar size. The following tables and associated explanations of the results concluded a clear necessity to increase stormwater rates to meet the objectives outlined above. Current Stormwater Utility Revenues Current stormwater revenues support operations and maintenance. Little or no funding is made from the utility to fund capital projects. Table 2 shows our anticipated 2017 revenues broken down byrate category. Anticipated revenue to the fund in 2017 is $102,908. TABLE 2-2017 REVENUE PROJECTIONS 2017 2017 EST EST Revenue Revenue Monthly # of %Charge Per Per Acre Rate Category MonthlyAnnual AccountsImperviousUnit/Gross Rate Area Base Single-family or Duplex 2,723NA$ 2.50 $ 6,808 $ 81,690 Multi-family 403NA$ 1.25 $ 504 $ 6,045 Senior 60NA$ 1.25 $ 75 $ 900 included Condominium NA$ 2.50 SF$ - Commercial/Light 430-32%$ 4.00 Industrial $ 1.00 $ 227 $2,724 Commercial/Moderate 4033-66%$ 4.00 Industrial$ 1.20 $ 252 $ 3,029 Commercial/Heavy 10467-100%$ 4.00 Industrial $ 1.40 $ 710 $ 8,520 $ 102,908 $8,576 Operations & Maintenance Costs Once current revenues were determined, Public Works completed an evaluation of Operational needs. The evaluation was specific to areas were routine stormwater Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 3 of 9 maintenance was required, and to determine the actual financial contributions to public works that should be funded from the stormwater utility. ANNUAL OPERATING COSTS(TABLE A) Equipment Maintenance Street Sweeping $ 5,000 Traffic Control and Storm CB Cleaning Annual $ 4,800 Current Misc Allocations to Stormwater $ 48,903 TV Inspections $ 2,500 Current PW Staff Allocations to Stormwater$ 54,005 30% of Current Parks Salary Allocation is actually for Stormwater $ 87,394 Development Review and Inspection*$ 34,667 20% of Current Street Salary Budget $ 55,715 Total Operating Annual Need:$ 292,984 *Assumptions for Development Review and Inspection / GIS Mapping and Public/Private existing inspections - 3 months @ $50.00/HR **Yellow Highlights 2017 Budget Allocations The results of this analysis showed several deficiently funded areas (those not highlighted in yellow) of stormwater operations and also areas were a portion of salaries and benefits for some Parks employees needs to be paid from the stormwater utility. No Parks salaries are currently paid in full or in part by the stormwater utility. Capital Improvement Plan Public Works evaluated the six year transportation improvement plan (6-YR TIP) to determine how much of those project costs should be funded by the stormwater utility. This is necessary to determine areas were the street fund may be subsidizing the stormwater fund due to historic “non financial participation” from thestormwater utility for new infrastructure. For example, any street project that requires a stormwater pond or catch basins to be installed to control stormwater runoff is an eligible expense and should be financially supported and maintained by the stormwater utility. Table 3 shows the 2017-2023 6-YR TIP program and stormwater needs. TABLE 3 2017 -2023 TRANSPORTATION IMPROVEMENT PROGRAM (TIP) STORMWATER NEEDS Project 2017-2023Stormwater % No.Arterial StreetsTotal CostsCosts "Study"Yelm Avenue / 1st Street (SR507) Corridor Study$ 93,501 NA PlanningInterlocal Dynameq Model $ 83,936NA PlanningBi Annual Traffic Counts -Synchro Model Update $ 60,000 NA Streets * Preservation and Maintenance (Overlay Program) Pavement Management System (PMS) Program City NewWide Evaluation$ 30,000 NA TIBFY 2018 Arterial Preservation Project (Cullens Act. Y15BStreet Overlay) $ 638,951 $ 12,250 Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 4 of 9 Bald Hill RD SE @ Yelm Creek -City Limits to 5 100% Y9Corners$ 20,000 $ 20,000 10% TBDAnnual Overlay Program Priority Ranking$ 280,000 $ 28,000 * Street Projects SW Mosman Ave Phase 2. - Railroad to Longmire 20% Y8A/Y8CPhase 2$ 1,412,500 $ 282,500 20% Y8E/Y8FMosman Ave E Phase 3 -2nd to Clark Rd$ 5,644,306 $ 928,861 20% Y4ACoates Ave NW -Killion to Cullens RD$ 2,393,437 $ 472,687 Burnett/93rd Intersection -Realignment & Traffic 10% Y5ASignal$ 1,300,000 $ 130,000 Y5BLongmire/SR 510 Intersection - Traffic Signal$ 1,450,000 $ 145,000 10% * Non Motorized Projects 4% New ADACompliance Annual Program $ 120,000 $ 4,800 20% Y17B1st Street Sidewalk Improvements$ 393,493 $ 72,850 20% Y16Fort Stevens Elementary Pedestrian Improvements$ 556,667 $111,333 Mill Road SE Multiuse Path –Cochrane Park to SR 20% Y21507 Alternative Route$ 607,500 $121,500 20% Y7BRail Trail -Power Canal to Roy$ 1,600,000 $320,000 4% * Small Works Projects Prioritized Annually(New) $ 60,000 $ 2,400 City Projects Totals 2017-2023 (2018 Costs&no Inflationadded)$16,506,854 $2,652,182 To fully fund the stormwaterportions of the 6-YR TIP, $2,652,182 is needed in additional revenues over the next seven years.Broken down, annual costs over that period would be $378,883 to support the projects listed. Couple the stormwater project costs with the annual operating costs shown in table A, and the stormwater utility needs to provide roughly $388,000 annually in revenue if we assume that 75% of the annual capital funding needs aresubsidized by grant opportunities. See table below for clarification. Estimated Annual Funding Needs Annual Capital Project Costs (Averaged)$378,883 Assume 75% Grant Funding for Capital Projects$ (284,162) Annual Capital Project Costs Assumed for Rate $ 94,721 Analysis Annual Operating Costs$ 292,984 Estimated Annual Funding Needed $387,705 (no inflation added): The $387,705 estimated annual need (starting in 2018)will be used in the proposed rate structure analysis.The following table breaksdown the annual needs over the seven year study period. Consumer Price Index of 2.5% per year was added to account for inflation. Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 5 of 9 Total Annual Needs 2017-2023 with Grants Secured Capital Operating Notes $ 292,984$ 94,721 2017 $ 300,308 $ 94,721 No inflation added to Capital CPI 2.5%2018 $ 411,630 $ 94,721 No inflation added to Capital CPI 2.5%2019 $ 421,920 $ 94,721 No inflation added to Capital CPI 2.5%2020 $ 432,468 $ 94,721 No inflation added to Capital CPI 2.5%2021 $ 443,280 $ 94,721 No inflation added to Capital CPI 2.5%2022 $ 454,362 $ 94,721 No inflation added to Capital CPI 2.5%2023 Total Needs TOTAL $ 3,419,998 $ 2,756,952$ 663,045 2017-2023 An estimated $3,400,000 in revenues over the study period was utilized as a target goal in the rate structure analysis. Rate Structure Analysis Public Works evaluated six different rate structures in detail. Those structure alternatives are listed below and all assume starting in 2018 and ending in 2023. 1.Do nothing 2.Increase Base Rate to $6.75 with no annual increase per year 3.Increase Base Rate to $7.50 with no annual increase per year 4.$5.00 Base Rate in 2018, then $1.00 increase per year 5.$6.75 Base Rate in 2018, then $1.75 increase per year 6.$7.50 Base Rate in 2018, then $2.50 increase per year Three structures were ultimately considered to compare how to achieve funding needs over the 2018 to 2023 cycle.The following fee structures are proposed for your consideration. Proposed Fee Structure No.1 TABLE 1 AND 1A First increase $2.50 Annual $1.00 $2.50 2017$ 102,908 $ 5.00 2018$ 204,623 $ 6.00 2019$ 246,425 $ 7.00 2020$ 291,005 $ 8.00 2021$ 335,585 $ 9.00 2022$ 380,165 $ 10.00 2023$ 424,745 $ 1,985,455 *No Population Increase Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 6 of 9 Proposed Fee Structure No.2 TABLE 2 AND 2A First increase $4.25 Annual $1.75 $ 2.50 2017$ 102,908 $ 6.75 2018$ 284,059 $ 8.50 2019$ 340,200 $ 10.25 2020$ 435,224 $ 12.00 2021$ 513,239 $ 13.75 2022$ 591,254 $ 15.50 2023$ 662,537 $ 2,929,420 *No Population Increase Comparable Agency Stormwater Proposed Fee Structure No.3 Base Rates TABLE 3 AND 3A First increase $5.00 Annual $2.50 Regionally $ 2.50 2017$ 102,908 (All are NPDES Phase2 Agencies) Lacey $10.11 $ 7.50 2018$ 316,587 Olympia $13.00 $ 10.00 2019$ 406,797 Tumwater $ 9.13 $ 12.50 2020$ 539,487 Thurston County $ 5.00 $ 15.00 2021$ 650,937 Comparable Size Cities $ 17.50 2022$ 762,387 Gig Harbor $13.00 $ 20.00 2023$ 867,666 Sumner $15.20 $ 3,646,769 *No Population Increase Recommendation Public Works staff concluded that there were several funding options to progressively move the stormwater utility into a self sustaining condition.With the target for the stormwater utilityto be self sufficient, it is recommended to move forward with a Proposed Fee Structure No. 2 for years 2018 moderated rate increase structure with through 2020 . This option will allow for stormwater construction, maintenance and operations to progress toward beingappropriately funded, and add relief to the street and general fundsby notcontinuing the subsidy. Public Works is recommending only the three year cycle of rate increases to allow for more frequent review of the financial state of the utility going forward. Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 7 of 9 CITYOFYELM ORDINANCENO.1027 AN ORDINANCE OF THE CITY OF YELM, WASHINGTON AMENDING CHAPTER 13.10.050 YELM MUNICIPAL CODE RELATING TO THE STORMWATER MANAGEMENT UTILITY MONTHLY SERVICE CHARGE RATES FOR YEARS 2018 THROUGH 2020. WHEREAS, the City operates a utility for the provision of stormwater management services and has set rates and fees to fund the costs of these services; WHEREAS, by adoption of Ordinance 682 in 1999, the City Council adopted the existing monthly service charge rates; and WHEREAS, the City has not adjusted the monthly service charge ra and WHEREAS, the regular review and adjustment of rates and fees are fiscal sustainability of the stormwater utility, and Public Workstudy in June 2017 to provide rate adjustment recommendations for the utility; and WHEREAS, the rate study conducted by Public Works and presented to the City Council on July 5, 2017 recommended adjustment to monthly stormwater service charges; and WHEREAS, the City Council accepts the recommendations of the ratmonthly rates in amounts necessary to improve funding of the operations and capital improvement needs of the utility; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF YELM, WASHINGTON DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 13.10.050 Yelm Municipal Code is hereby amended as follows: 13.10.050 Service Charge Rates Subject to the rate adjustments provided in YMC 13.10.060, the storm and surface water utility charges shall be levied upon the basis of a flat monthly base rate foringle-family residential parcels, duplexes, multiple-family parcels and condominiums; and for all other parcels a sli be determined by measuring the amount of impervious surface area figure by the total area of parcel to determine the percent of impervious surface and the category. The monthly charge shall be that amount resulting from rate category applicable to the parcel by the total area of the us surface of the parcel. The rate categories, the parameters of impervious surface for said rate c applicable to each category shall be as follows: Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 8 of 9 Monthly Service Charges (Per Unit/Gross Acre) Monthly Service 2018 Rate 2019 Rate 2020 Rate % Rate Category Charge Per (Effective 01/01/18 (Effective 01/01/19 (Effective 01/01/20 Impervious Unit/Gross Acre to 12/31/18)to 12/31/19)to 12/31/20) 1. Single-family or duplex N/A $2.50 per unit $6.75 per unit $8.50 per unit $10.25 per unit 2. Multiple-family N/A $1.25 per unit $3.38 per unit $4.25 per unit $5.13 per unit 3. Condominium N/A $2.50 per unit $6.75 per unit $8.50 per unit $10.25 per unit 4. Commercial/ Industrial-0  32% of $4.00 base rate $9.75 base rate $11.50 base rate $13.25 base rate light site imperv. and $1.00 per and $3.75 per and $5.50 per and $7.25 per acre acre acre acre 5. Commercial / Industrial-33  66% of $4.00 base rate $9.75 base rate $11.50 base rate $13.25 base rate moderate site imperv. and $1.20 per and $4.20 per and $5.95 per and $7.70 per acre acre acre acre 6. Commercial / Industrial-67  100% $4.00 base rate $9.75 base rate $11.50 base rate $13.25 base rate heavy of site and $1.40 per and $6.55 per and $8.30 per and $10.05 per imperv. acre acre acre acre The rates set forth in this section shall be effective for all s the effective date of this chapter. SECTION 2. Effective Date of Rates. The rates established herein shall take effect on the customer'son January 1, 2018 and continuing to December 31, 2020 consistent with the Monthly Service Charges table. Effective Date of Ordinance. SECTION 3. This Ordinance shall be in full force and effect five (5) days after it summary as required by law. Agenda Item 8a Ordinance No. 1027, YMC Stormwater Mngmt Utility Page 9 of 9 ADOPTED by the City Council and SIGNED by the Mayor this 12th day of September, 2017. JW Foster, Mayor Attest/Authentication: Lori Mosmman, City Clerk APPROVED AS TO FORM: City Attorney Published: Effective Date: Ordinance No: Agenda Item 8b Interlocal Agreement (Olympia, Lacey, and Yelm) for continuation of water rights Page 1 of 2 City of Yelm STAFF REPORT To:Mayor JW Foster Yelm City Council From:Chad Bedlington, Public Works Director Date: August 10, 2017(for September 12, 2017City Council Meeting) Subj:Deschutes Water Right Mitigation Strategy – Phase 5 Attach:Interlocal Agreement (Olympia, Lacey, and Yelm) Recommendation Authorize Mayor Fosterto sign the Interlocal Agreement between the City’s of Olympia, Lacey, and Yelmwhereby authorizing the Mayor to allow continuation of water rights mitigation participation and efforts with our partner city’s of Lacey and Olympia. Funding Expense authority for this phase of the project was authorized within the 2017 Annual Budget. Adequate funds exist in the budget for the Deschutes Water Rights Mitigation Strategy Phase 5. This agreement is inclusive of a financial obligation inthe amount of $21,644in 2017, and $11,167in 2018,2019, and 2020(totaling $55,144) for buffer planting and property management. Background The DeschutesRiver Habitat Restoration project restores former fish and wildlife habitat on 200 acres of property jointlyowned by the Citiesof Yelm, Lacey, and Olympia. The property was originallypurchased in 2011. Habitat restoration design has been completed and is currently scheduled to commence in 2018. This project is one of a suite of mitigation projects agreed to be completed by the Cities of Yelm, Lacey, and Olympiain order to mitigate for groundwater withdrawals associated with water rights that were awarded to the Cities by the Department of Ecology. However, because Yelm's water rights award was reversed by the Washington State Supreme Court, the City has only committed to support the designof this particular project and maintenance of the jointly owned property. Any further mitigation effortsto be funded by the City of Yelm, including the construction of this project,are postponeduntil the issues surrounding the award of future water rights to the City of Yelm aresettled.However, the City’s of Lacey and Olympia have agreed to allow for Agenda Item 8b Interlocal Agreement (Olympia, Lacey, and Yelm) for continuation of water rights Page 2 of 2 the City to participate retroactively in construction costs at a later time should the City of Yelm need to complete beneficial mitigate for future water rights. Current Situation Design of the habitat restoration project was completed in 2017 and it is expected that construction will be completed by late summer of 2018.Within this interlocal agreement, the Cities are agreeing to split the costsevenly three waysfor riparian bufferplanting, property management, and reimbursement to the City of Olympia for previous 50-ft buffer plantings.The City of Yelm is not committing to financial participation in the construction of this mitigation project by approval of this agreement, but language exists within the Interlocal Agreement to allow the City to retroactively participate in construction costs should the City have a future benefit by doing so. Agenda Item 8c Ordinance No. 1028, Financial Policies Page 1 of 8 City of Yelm STAFF REPORT To: Mayor JW Foster Yelm City Council From: Michael Grayum, City Administrator Date: September 7 (for September 12 City Council Meeting) Subj: Municipal Code Update regarding Financial Polices Recommendation Adopt Ordinance 1028amending Title 3 of the Yelm Municipal Code to update the Cumula Reserve Fund polices, authorize the collection of REET II, and c Revolving Fund. Background Mayor Foster, the City Management team, and members of the Finance Committee have discussed the need to createa true reserve fund in the City Budget rather than rely on cash hand as the "reserve." Making this change is one of the priorities identified for 2017. While the Municipal Code establishes a Cumulative Reserve Fund, it has not and the code requires an update to fulfill the desired intent to establish and utilize a true reserve fund. The Mayors budget will include a proposal to place funds into an established, dedicated reserve to create more clarity and transparency. Ordinance 1028 would update the Cumulative Reserve Fund to create this specific policy framework and achieve the shared intent of the Mayor and City Council. The Ordinance also authorizes the collection of the second one-quarter of one percent Real Estate Excise Tax as discussed by the Council as part of the Six Year Transportation Improvement Program and Wastewater Facilities Plan. REET II is projects identified in the Yelm Comprehensive Plan, such as road wastewater plant upgrades. This is also a recommendation of Mayor Foster, the City Management team, and members of the Finance Committee. Finally, the proposed Ordinance establishes enabling legislation for the creation of a Equipment Rental & Revolving (ER&R) Fund. An ER&R Fund is an en plan for and set aside funds in advance for the purchase and mai vehicles, and to amortize the replacement costs of these expensi This proposed enabling legislation would create the authority for the City to capitalize the fund Agenda Item 8c Ordinance No. 1028, Financial Policies Page 2 of 8 as part of the 2018 budget process, which will be another component of the Mayors proposed budget to City Council and is a recommendation of the Mayor, City Management team and Finance Committee. Current Situation Ordinance 1028, attached here for a first reading by the City Council to update the Municipal Code in a manner consistent with the shared vision of the Mayor and Council to establish a framework for financial policies that increases clarity and transparency as part of the consideration of the 2018 budget. Options The City Council may: Discuss the proposed Ordinance and set it for adoption at the Se meeting. Waive the second reading and adopt the proposed Ordinance at the meeting. Take no action on the proposed Ordinance. Agenda Item 8c Ordinance No. 1028, Financial Policies Page 3 of 8 CYON.1028 ITY OF ELM RDINANCE O AN ORDINANCE of the City of Yelm amending the Financial Policies of Title 3 YMCto update the Cumulative Reserve Fund polices, authorize the collection of REET II, and create an Equipment Rental & Revolving Fund. WHEREAS, the Mayor, City Management, and Council Finance Committeeof the City of Yelm have established a priority to create a more user-friendly, budget document; and WHEREAS, it is a shared priority to ensure City finances are clear and sustainable, and creating reserve fund policies are key to this effort; and WHEREAS, the City of Yelm desires to update the manner in which the Cumul Fund is managed and expended; and WHEREAS, the Mayor and Council believe that important and costly tools reliedy City staff, such as vehicles, equipment, and computer networking and desktop systems, should be planned and budgeted in advance, and replaced on a predictable a; and WHEREAS, the City of Yelm desires to create an Equipment Rental and Reserve Fund; and WHEREAS, the City of Yelm desires to impose the Real Estate Excise Tax of one-quarter of one percent of the selling price to fund critical infrastructure as authorized at Section 82.46.035 RCW; NOW, THEREFORE, THE YELM CITY COUNCIL DOES ORDAIN AS FOLLOWS: Section 1. Chapter 3.16 YMC, Cumulative Reserve Fund for General Municipal amended as follows: 3.16.010 Established. Pursuant to the authority contained in Section 35.21.070 RCW, There there is established a cumulative reserve fund for revenue stabilization for future operations for the City of Yelm for the purpose of temporary revenue losses to economic cycles or other time-related causes.for the city a cumulative reserve and urban development fund. 3.16.020 Accumulation of moneys. The moneys in the fund may be allowed to accumulate from year to the legislative authority of the city determines to expend the m for the purpose specified. The monies in the fund shall never b any purpose or purposes than those specified, without an approvi two-thirds majority of the members of the legislative authority of t. Agenda Item 8c Ordinance No. 1028, Financial Policies Page 4 of 8 3.16.030 Expenditure limitations. The monies deposited into this fund may come from various source. The expenditure of moneys from such fund shall be as determined time by action of the city council; provided, however, that mone for specific uses in the fund shall be expended for: A. Capital improvements, construction, alteration or repair of any public building or work, or the purchase of supplies, material and equi support of general municipal functions; B.Urban renewal projects. 3.16.040 Transfer of funds from current expense investment account. Those moneys now maintained in the current expense investment account of the city are transferred to the cumulative reserve fund for general purposes. Section 2. Chapter 3.52 YMC, Real Estate and Used Mobile Home Sales Tax, is amended as follows: 3.52.010 Imposition  Rate. A. There is imposed a tax of one-quarter of one percent of the selling price on each sale of real property within the corporate limits of the as authorized by Section 82.46.010 (2) RCW. B.There is imposed a further tax of one-quarter of one percent of the selling price on each sale of real property within the corporate as authorized by Section 82.66.035 (2) RCW 3.52.020 Taxable events. Taxes imposed herein shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and Chapter 458-61 WAC, as now or hereafter amended, upon the occurrence of any taxable event within the cor of the city.. 3.52.030 Consistency with state tax and statutes. The taxes imposed herein shall comply with all applicable rules, regulations, laws and court decisions regarding real estate taxes as imposed by th Chapter 82.45 RCW and Chapter 458-61 WAC. The provisions of those chapters, to the extent they are not inconsistent with this chapter, are i reference and shall apply as though fully set forth herein. Agenda Item 8c Ordinance No. 1028, Financial Policies Page 5 of 8 3.52.040 Distribution of tax proceeds  Use limitations. A. The county treasurer shall place one percent of the proceeds of imposed herein and actually collected in the county current expe defray costs of collection. B.The remaining proceeds from city taxes imposed herein shall be d to the city monthly, and those taxes imposed under YMC 3.52.010 placed by the city clerk/treasurerFinance Directorin the municipal capital improvements fund, . and C. Proceeds from the city taxes imposed herein shall shall be used by the city for financing capital projects specified in a capital facilities pla ta comprehensive plan or housing relocation assistance pursuant to Sections 82.46.010 (2)(b) and 82.46.030 (4) RCW.local improvements including those listed in RCW 35.43.040. C. This section shall not limit the existing authority of the city assessments on property benefited thereby in the manner prescrib law. 3.52.050 Sellers obligation. The taxes imposed herein are the obligation of the seller and mae enforced through the action of debt against the seller or in the manner p foreclosure of mortgages. 3.52.060 Lien provisions. The taxes imposed herein and any interest or penalties thereon a lien upon each piece of real property sold, from the time of sal paid, which lien may be enforced in the manner prescribed for th mortgages. Such means of enforcement shall be deemed cumulative alternative, and the election to pursue either shall not preclude later pursuit of the other, or of both remedies, or of any other enforcement acti available in law or equity. 3.52.070 Payment and collection of tax  Receipts and recording. The taxes imposed herein shall be paid to and collected by the t county within which is located the real property which was sold. treasurer shall act as agent for the city within the county coll county treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its rec real estate excise tax affidavit in the case of used mobile home Agenda Item 8c Ordinance No. 1028, Financial Policies Page 6 of 8 issued by the county treasurer for the payment of the tax imposell be evidence of the satisfaction of the lien imposed in YMC 3.52. recorded in the manner prescribed for recording satisfactions of instrument of sale or conveyance evidencing a sale subject to th accepted by the county auditor for filing or recording until the tax is paid and t stamp affixed thereto; in case the tax is not due on the transfe shall not be accepted until suitable notation of this fact is ma instrument by the county treasurer. 3.52.080 Date payable  Penalty for late payment. The tax imposed hereunder shall become due and payable immediate time of sale, and if not so paid within 30 days thereafter, shal the rate of one percent per month from the time of sale until the date of payment. 3.52.090 Excessive and improper payments. If, upon written application by a taxpayer to the county treasur appears a tax has been paid in excess of the amount actually due or other transfer declared to be exempt, such excess amount or i payment shall be refunded by the county treasurer to the taxpaye that no refund shall be made unless the state has first authoriz an excessive amount or an improper amount paid, unless such improper amount was paid as a result of miscalculation. Any refund made (to the same be attributable to earlier overpayments to the city), shall the next monthly distribution to the city. Section 3. A new Chapter 3.68 YMC, Equipment Rental and Revolving Fund, is hereby adopted as follows: Section 3.68.010 Established There is established a fund to be known as the equipment rental fund, to be used for the expenditures for salaries, wages and operations required for the repair, replacement, purchase and operation of vehicles and other portable equipment which the City shall decid and replace through this fund. Section 3.68.020 Authorization The equipment rental and reserve fund created in this section sh supervised by the Finance Director and administered by the City their designee. Agenda Item 8c Ordinance No. 1028, Financial Policies Page 7 of 8 Section 3.68.030 Scope of Equipment managed by the Fund A. All motor vehicles and other portable equipment of the various departments of the City shall be transferred to the equipment rental and res directed by the Finance Director. B.All computer, electronic and other portable office equipment of departments of the City shall be transferred to the equipment re reserve fund as directed by the Finance Director. Section 3.68.040 Financial Management of the Fund A. The charges for the use of equipment shall be sufficient to cove maintenance, operation and replacement of such equipment and the terms for the rental thereof shall be as determined by the Finance Dir approved by the adoption of the annual budget. Such rental rate reviewed and, if needed, revised to meet changing costs of maint operation and replacement. B.There shall be kept, as directed by the Finance Director, such b accounts and records as are necessary to control and report the operations of the equipment rental and reserve fund. Within the shall be kept separate accounts for operation and maintenance an depreciation reserve account for replacement of equipment in thi C. All monies deposited in the equipment rental and reserve fund an expended as provided in this chapter shall remain in the fund frm year to year and shall not be transferred to any other fund or expended other purpose. D. If, at any time hereafter, the City Council shall abolish the eq and reserve fund, then all monies on deposit therein shall rever deposited in the several funds and departments participating in t Section 4. If any provisions of this Ordinance or its application to any pe is held invalid, the remainder of the Ordinance or the applicati other persons or circumstances is not affected. Section 5. This Ordinance shall be in full force and effect and after its p publication as provided by law. Agenda Item 8c Ordinance No. 1028, Financial Policies Page 8 of 8 PASSED by the City Council of Yelm this 26th Day of September, 2017. JW Foster, Mayor Authenticated: Lori Mossman, City Clerk PUBLISHED: Nisqually Valley News, October 6, 2017 EFFECTIVE DATE: October 11, 2017