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4013 ETA Policy Final 7-22-25RESOLUTION NO. 4013 A RESOLUTION TO ADOPT THE EXTRA TERRITORIAL AGREEMENT (ETA) POLICY Recitals: 1. 1. The City of Moses Lake is the primary purveyor of water and wastewater services within the city limits. 2. Despite not being legally required to provide utility services outside the city limits, the City Council has historically elected to exercise its legislative discretion to extend water and wastewater services within the City’s Urban Growth Area (UGA) pursuant to an Extra-Territorial Utility Extension Policy (ETA Policy) and contract which sets forth the discretionary terms and conditions of such utility extensions. 3. In recent years, the City’s access to new potable water sources has become more limited, the deep-water aquifer is not replenishing, and treatment costs of current water supplies have become more expensive. 4. The City Council recognizes the region’s limitations on, and value of, potable water. 5. The City’s primary responsibility to provide potable water is to its existing ratepayers and customers within the city limits. 6. The City Council encourages growth within the City and within the UGA to increase local housing inventory and allow for more primary industry employers with the goals of lifting and diversifying Moses Lake’s economy, attracting family-wage jobs, and providing economic mobility for its residents. 7. The City Council desires to continue its discretionary ETA Policy of providing water and wastewater services outside the City’s corporate limits within the UGA. However, to continue such extra-territorial utility extensions, the City Council finds it necessary to amend its current ETA Policy to reflect the current capacity, increasing costs, and priority of allocation related to such utility extensions. Resolved: 1. The City Council adopts the above recitals as findings of fact for purposes of this Resolution. Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 1 of 13 2. The City Council adopts the updated Extra-Territorial Utility Extension Policy attached hereto as Exhibit A and incorporated herein by reference. 3. The City Council hereby repeals Resolution No. 3717 in its entirety. Adopted by the City Council on July 22, 2025. ______________________________ Dustin Swartz, Mayor ATTEST: ______________________________ Debbie Burke, City Clerk Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 2 of 13 ETA Policy Effective 07.2208.2025 Page | 1 of 10 Extra Territorial Agreement (ETA) Policy Resolution 4013 Effective 07.08.2025 Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 3 of 13 ETA Policy Effective 07.2208.2025 Page | 2 of 10 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 ETA Exemptions (carried over from Resolution 3717): ........................................................................... 10 Definitions ............................................................................................................................................... 1111 Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 4 of 13 ETA Policy Effective 07.2208.2025 Page | 3 of 10 Preamble The City of Moses Lake is the primary purveyor of water and wastewater services within the city limits. Historically, the City Council has elected to extend water and wastewater services within the City’s Urban Growth Area (UGA) pursuant to an Extra-Territorial Utility Extension Policy (ETA Policy) which sets forth the discretionary terms and conditions of such utility extensions. 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 or primary 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 water for new development in the UGA, the developer must adequately demonstrate in Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 5 of 13 ETA Policy Effective 07.2208.2025 Page | 4 of 10 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 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. Infrastructure requirements are dependent upon the development proposed and may Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 6 of 13 ETA Policy Effective 07.2208.2025 Page | 5 of 10 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 automatic 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 Meeting in December (but no later than December 15) Staff will bring forward to Council all applications for approval/denial January of the Following Year Construction Management will execute ETA with property owner(s) for approved applications. Community Development will begin Developer Agreement negotiations (if applicable) May 1st of the Following Year Semiannual application deadline #2: ETA applications for 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. Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 7 of 13 ETA Policy Effective 07.2208.2025 Page | 6 of 10 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. Step 1 – Application: 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. Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 8 of 13 ETA Policy Effective 07.2208.2025 Page | 7 of 10 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 required by staff to review the request and as required by defined in Resolution #3717 or applicable city ordinance or this policy. Step 2 – Evaluation: Staff reviews the formal requests and classifies them based on the criteria below: CLASSIFICATION DESCRIPTION CLASS 0 IN/ABUTTING CITY LIMITS The parcel(s) are contiguous (touching/abutting) to existing corporate limits of the City. 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. 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 PUBLIC HEALTH The parcel(s) are not contiguous to existing corporate limits of the City. 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 SHORT EXTENSION The parcel(s) are not contiguous to existing corporate limits of the City. 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 failing septic system, has sewer main on their frontage street and they are Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 9 of 13 ETA Policy Effective 07.2208.2025 Page | 8 of 10 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 required by staff 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 for the City Manager. 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. Any requests for more than 1 ERU may be required to complete a Development Agreement addressing the required improvements, phasing/timing, deadlines, etc., or have similar language included in their ETA. 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 orde ,r 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: Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 10 of 13 ETA Policy Effective 07.2208.2025 Page | 9 of 10  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.  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. Required Development Agreements must be negotiated and executed prior to/in conjunction with signing the ETA. 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: Any formal commitment given by the City to provide water and/or sewer utilities outside the corporate limits of the City shall remain in effect for two (2) years. Within the two (2) year commitment period, Tthe terms of the ETA must be met, through service connection and/or meter installation, within 2 years of recording or it terminates without further consideration by the City.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 Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 11 of 13 ETA Policy Effective 07.2208.2025 Page | 10 of 10 other developments in the current year within city limits or the following year for UGA allocation. ETA Exemptions (carried over from Resolution 3717): 1. Property which contains a county-owned and operated agricultural fair as defined by RCW 36.37 (currently the Grant County Fairgrounds located at Valley Road and Airway). 2. Property owned and operated by the Port of Moses Lake as of February 27, 2018. Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 12 of 13 ETA Policy Effective 07.2208.2025 Page | 11 of 10 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. Development Agreement – a voluntary contract between a local jurisdiction and a person who owns or controls property, detailing the obligations of both parties and specifying the standards and conditions that will govern development of the property; although the agreements are voluntary, once made they are binding on the parties and their successors. 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. Document Ref: OA3KD-NBYHW-JH4TP-PG6D9 Page 13 of 13 REF. NUMBER OA3KD-NBYHW-JH4TP-PG6D9 DOCUMENT COMPLETED BY ALL PARTIES ON 28 JUL 2025 22:23:35 UTC SIGNER TIMESTAMP SIGNATURE MAYOR DUSTIN SWARTZ EMAIL DSWARTZ@CITYOFML.COM SHARED VIA LINK SENT 25 JUL 2025 17:07:01 UTC VIEWED 28 JUL 2025 22:02:09 UTC SIGNED 28 JUL 2025 22:02:37 UTC IP ADDRESS 74.82.240.250 LOCATION MOSES LAKE, UNITED STATES DEBBIE BURKE EMAIL DBURKE@CITYOFML.COM SENT 25 JUL 2025 17:07:01 UTC VIEWED 28 JUL 2025 22:23:15 UTC SIGNED 28 JUL 2025 22:23:35 UTC IP ADDRESS 63.135.54.162 LOCATION MOSES LAKE, UNITED STATES RECIPIENT VERIFICATION EMAIL VERIFIED 28 JUL 2025 22:23:15 UTC Signed with PandaDoc PAGE 1 OF 1