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HomeMy WebLinkAboutFINAL 2026 0501-02 Council Retreat PacketMoses Lake City Council Retreat Agenda Dustin Swartz, Mayor | Don Myers, Deputy Mayor | Mark Fancher, Council Member | Joel Graves, Council Member David Skaug, Council Member | Victor Lombardi, Council Member | Jeremy Davis, Council Member _________________________________ Location: Pillar Rock Conference Room 1373 Rd F.2 NE Moses Lake, WA Day 1– Friday, May 1, 2026 – 8:00 a.m. Day 2 – Saturday, May 2, 2026 – 9:00 a.m. 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) 764-3707 at least five business days in advance of the meeting. Link to all Council Agendas: Council Retreat May 1-2, 2026, Page 1 of 65 Council Retreat May 1-2, 2026, Page 2 of 65 Moses Lake City Council Retreat May 1 & 2, 2026 DRAFT Agenda Friday, May 1, 2026 8:00 am 8:15 am Welcome and purposes of this two-day retreat Ground rules and agenda review Tab 2: pg 9 Leadership, Policy Making, & Working Together - broken external links repaired May 4 8:45 Review of Last Year’s Accomplishments and Accomplishments Year-To-Date 9:00 Review of Last Year’s Retreat – Tab 3: June 2025 Retreat Report pg 11 Status of 2025 Retreat Agreements pg 21 Look Back: Future Magazine Articles to be Published Ten Years from Now pg 23 9:45 Break Council Retreat May 1-2, 2026, Page 3 of 65 Note: Times required for each topic are estimates. Once a topic is completed, the next topic will be addressed. Items on the May 1 agenda may continue into the May 2 agenda. Conversely, items scheduled for May 2 might get discussed on May 1. 10:00 2026 City Council Priorities: Progress and Status Tab 4: pg 29 1.Financial Sustainability a.Implementing the Financial Sustainability Plan b.Audits and Finance Reporting to the State Auditor Tab 5 pg 35 c.Police Evidence Barcoding and 100% Audit 20277 d.Finance Director Recruitment Update e.2027 Budget Process Budget Calendar – Tab 5 pg 46 2.Water Sources a.Remaining Capacity - Tab 6: pg 67 b.Status of Working with DOE and USBR 3.Community Visioning, Positivity, & Confidence in the City a.“Law of Attraction” – Vision & Positivity for the City Tab 7 pg 49 b.Shared Stewardship: Volunteers, co-creators, & love notes c.Customer Service i.Permitting Processes, including permit software ii.SeeClickFix Service Request System d.Beautification Town Hall scheduled for June 16; code revision workshop to follow. e.Volunteer Opportunities with Code Enforcement f.Neighborhood Cleanup: April 25 g.Street sweeping; landscape maintenance in key areas h.Downtown & Civic Campus Design; Business Plan Tab 8 pg 53 i.Refining Council Priority #3: i.Improving the business climate ii.Community pride – volunteerism, cleaning up the city, marketing/ branding, and telling our story iii.Branding. City logo and color pallet: variations that feature Moses Lake’s heritage 4.Fire Services Delivery Study & Third Fire Station a.Study Complete b.Third Fire Station: Temporary and Permanent 5.New Police Station 6.Second Lake Crossing 7.WSDOT Highway Projects Other Significant Projects this Year (not including CIP, which is discussed below) 1.2027 Comprehensive Plan 2.2026 Docket Council Retreat May 1-2, 2026, Page 4 of 65 3.Stormwater Plan 4.Street & Utility Standards 5.Safe Streets Program 6.Graffiti Removal – PD & Code Enforcement 7.Fee Study 8.Facilities Assessment 9.Tyler (Jan 2027 – Finance, Apr 2027 – HR/Payroll, UB - TBA) 10.Sanitation regulations from WA State 11.Website revamp 12.Safety Committee 13. Ballot Measure for 0.1% Public Safety Sales Tax Noon 1:00 pm Lunch Break Six-Year Capital Improvement Plan Update Tab 9: pg 616 1:30 City Council Accessibility to the Public Coffee with Council Viewing City Council Meetings: ADA Video Narration Requirement April 2027 City Council meetings livestream production improvements Facebook Pages for Individual Councilmembers; App to archive FB posts. 2:00 Parks Evaluating Parks & Park Facilities to Maintain Athletic Fields Attracting more tournaments to Moses Lake Parking lot for fishing right behind Walmart near the RR trestle: WDFW Museum: Combining forces/consolidating with PUD, County, Port Council Retreat May 1-2, 2026, Page 5 of 65 Municipal Airport: 60-day Notice in Leases & Encouraging More Hangars Public Safety Emergency Management Police Department Forensic Audit Homeless camps on private property: City share removal costs? Kratom ban? (7OH) 4:45 Recap & agreements from today 5:00 pm Adjourn 3:00 Break 3:15 Roads/Streets/Stormwater For new subdivisions: Manage stormwater in planter strips; e.g., dipped swale Not requiring the sidewalk to be constructed until the house is constructed Snow removal on sidewalks: Policy on deciding which sidewalks are plowed Public Works Engineering Traffic Impact Fees Council Retreat May 1-2, 2026, Page 6 of 65 Saturday, May 2, 2026 9:00 Welcome, recap of Day 1, and review of today’s agenda 9:15 Economic Development Enterprise Zone – (external links) Greater Hermiston Enterprise Zone - Hermiston, OR Targeted Urban Area Tax Exemption Program - Richland, WA Proactive Business Recruitment (10-yr. Tax Free Zone) Pasco, WA 9:30 Intergovernmental: Improving relationships with the County, Port, MLIRD, and other partners 10:00 Administration City liability insurance Valuing our employees 10:30 What’s On the Horizon? Technology Economy Regulations – Known and Potential Regional/State/National/Global Transportation Sales Tax RenewallBallot Measure – 2027 12:30 Break / Working Lunch? City Council Priorities for 2027: Priority-setting process Develop the list, including what success looks like for each priority Order of priority: paired comparison exercise 3:00 Break 3:15 Wrap up -Recap of agreements from this retreat -Reflections on this two-day retreat 4:00-5:00 Adjourn Council Retreat May 1-2, 2026, Page 7 of 65 Council Retreat May 1-2, 2026, Page 8 of 65 Council Retreat May 1-2, 2026, Page 9 of 65 Council Retreat May 1-2, 2026, Page 10 of 65 1 Moses Lake City Council Retreat Report Held on June 5 and 12, 2025 Day One: Thursday, June 5, 2025 Day one of the Moses Lake City Council retreat began shortly after 8 am at the Best Western Hotel, 3000 W. Marina Drive in Moses Lake. City Councilmembers in attendance were Mayor Swartz, Deputy Mayor Madewell, and Councilmembers Meyers, Martinez, Fancher, and Skaug. The city manager, city clerk, and department heads were also in attendance. Mayor Swartz opened the meeting and asked City Manager Rob Karlinsey to facilitate the retreat. Karlinsey went over retreat ground rules and purposes of the retreat, including 1) improving working together, 2) discuss various policy issues, and 3) establish and prioritize City Council priorities for the 2026 budget. Leadership, Vision, and Working Together The group discussed mindset concepts and ideas from the book, Success Mindsets, by Ryan Gottfredson: Instead of focusing on: The priority should be: Type of Mindset: Looking Good Learning and Growing Growth Being Right Finding truth and the best solutions Open Avoiding Problems Reaching Goals Promotion Getting Ahead Lifting Others Outward The group then had a discussion on vision and positivity for the City, summarized as follows (referencing quotes and stories from the discussion): “As we look ahead to take Moses Lake to the next level, remember that you will get what you expect, that your “car” goes where your eyes go, you’ll find what you seek, and that when you’re truly and relentlessly committed to a goal, other forces (call them what you will) will combine and move with you.” Next, several councilmembers shared articles they had written, entitled “How Moses Lake Became the Best City in America” to be published ten years from now in American City & County magazine. The group shared themes and key words that emerged from these articles, including community, connection to history, vision, downtown revitalization, lake, economic development, partnerships, diversity, adaptability, innovation, creativity, shot at the American dream, big ideas and bold actions, art, industry, fountains, bridge, walkability, boardwalks, live not just visit, tourism, connection to the environment, homegrown approach, risk taking, infrastructure power water, and regional approach. Council Retreat May 1-2, 2026, Page 11 of 65 2 In the next discussion exercise, Councilmembers were invited to list their “man on the moon goals” for the City, meaning what big goals would they like the City to accomplish in the next 10 or so years. Councilmembers listed the following “man on the moon” goals: Bridge: a new lake crossing Water sustainability, including a direct line from the Columbia River Waterfront boardwalk Affordable housing 2,000 megawatts of new electric power for Grant County More retail, including retail that provides an experience and variety and that attracts new visitors STEAM Museum (Science, Technology, Engineering, Arts, and Mathematics) Fiscal Landscape At about 10:30 am, Finance Director Madeline Prentice presented a six-year financial forecast for the Street Fund and the General Fund combined. Ms. Prentice went over the model, including assumptions (e.g. inflation, revenue growth, etc.), methodology, and scenarios. The scenarios assumed status-quo spending with one spending variable, which was whether to continue the SAFER grant-funded positions in the Fire Department beyond July of 2026. Revenue assumptions assumed moderate revenue growth, with the one variable being recession or no recession, which affected sales tax and permitting fee revenue. With the assumptions and variables in mind, Ms. Prentice presented four scenarios from most favorable to least favorable. All scenarios showed deficit spending in 2025 and all subsequent years. The combined reserve levels (fund balances) in the most favorable scenario stayed above the 15% of annual expenditures minimum level through 2026, while the lease favorable scenario showed reserve levels dropping below the minimum in 2026. Even the most financially optimal scenario (no recession and status quo except for SAFER grant positions) shows the combined General Fund and Street Fund balances declining below the Council’s target reserve goal by 2027: Council Retreat May 1-2, 2026, Page 12 of 65 3 The least favorable of the four scenarios (recession, keep the SAFER positions past the grant), shows the combined fund balance falling below the target reserve goal next year: Participants discussed the results of the financial forecast as well as other factors that may add to the deficit, including additional spending that may be needed for pavement preservation, facilities needs, and vehicle and major equipment replacements. Participants also pointed out that the transportation sales tax expires in 2027 and as a result, there will need to be a voter- Council Retreat May 1-2, 2026, Page 13 of 65 4 approved ballot measure in 2026 in order to renew and maintain the sales tax in 2027 and beyond. Participants then discussed Finance Director Prentice’s audit findings memo, which was included in the retreat packet. Ms. Prentice stated that converting the City’s accounting method from modified accrual to cash basis will be a necessary step in being able to produce accurate financial reports and thereby eliminating future audit findings. The goal is to achieve clean audit findings (including addressing prior findings) by the end of 2026. Ms. Prentice then went over the 2026 budget process and budget preparation calendar. The draft preliminary 2026 budget is expected to be presented to the City Council in late September or early October with City Council budget workshops every Tuesday evening in the fall through Thanksgiving. If all goes according to schedule, the City Council will adopt the 2026 budget by this coming Thanksgiving. City Council Meetings and Committees Councilmembers discussed the need for the council subcommittees, including pros and cons. Agreement #1: The Council agreed to discontinue the committees and directed staff to amend the municipal code accordingly. Subcommittees would be replaced by City Council study sessions and one on ones with the city manager. Councilmembers also discussed Council committee assignments, such as LTAC. Agreement #2: The Council agreed to require an annual rotation of city (e.g. LTAC) and regional committee assignments. The next rotation of committee assignments will take place in January 2026. Participants also discussed modifications to standing City Council meeting agenda items. Agreement #3: Remove mayor and city manager reports; mayor reports will be incorporated into other parts of the agenda, including proclamations, presentations, and City Council reports. Amend administrative reports to staff reports and incorporate the city manager’s report into the staff reports agenda item; and add future business to council reports. Other topics relating to Council meetings were also discussed, including the preference to give staff advance notice prior to pulling items from the consent agenda; and improving the effectiveness of City Council policy discussions by getting questions to staff ahead of time. Public comments were also discussed, including deferring operational service requests during public comment to staff. Councilmembers discussed whether to provide time for invocations at the beginning of City Council meetings and whether to develop and adopt an invocations policy. Agreement #4: For the reasons discussed, City Council meetings will continue as usual with no provision or policy for invocations. Increasing public participation in policy discussions and public meetings was also discussed. Agreement #5: The City Council will host more Town Hall-style meetings, including one this fall. Participants then discussed the need for thorough onboarding and orientation of new City Councilmembers, as well as the need to provide parliamentary training for the City Council and Council Retreat May 1-2, 2026, Page 14 of 65 5 the Planning Commission. Agreement #6: Arrange for parliamentary procedure training in the next few months. Include quasi-judicial and land use training as part of the onboarding training for new councilmembers. Infrastructure The need to identify capital projects that are doable financially and practically was discussed. City Manager Karlinsey noted that six-year capital improvement plans (CIPs) will be created for each of the following areas: wastewater, water, stormwater, transportation, facilities, and parks. These draft CIPs will be presented for City Council discussion in September and City Council consideration in October. Level of service, and infrastructure capacity and concurrency were also discussed. Agreement #7: Transportation levels of service (LOS) will be updated as part of the upcoming Comprehensive Plan update. Gateways into the City Gateway signage and art were discussed, including a Chief Moses statue at the new Yonezawa roundabout at SR 17. Other potential gateway locations and ideas were also discussed. Water Strategy Given the importance and immensity of this topic, participants arrived at Agreement #8: The City Council will hold a strategy session on water sustainability in the near future. City staff are working on a white paper to define the water resource problem and identify options to achieve long term water sustainability. Transportation Division Street striping was discussed, including the difficulty of finding gaps to turn onto Division during peak traffic times. Compact roundabouts at certain intersections on Division were discussed as a way to create gaps and improve safety and flow. Restriping Division back to four lanes was also proposed. Agreement #9: The City Council will hold a community meeting to receive neighborhood input regarding Division Street safety and throughput of automobiles. Pavement preservation methods were briefly discussed, including crack sealing, slurry sealing, chip sealing, and asphalt overlays. Councilmembers expressed a preference for asphalt overlays over chip seals but recognized the added costs (including ADA curb ramp upgrades) of asphalt overlays. Participants discussed ADA parking in the downtown, specifically on or near Third Avenue. Agreement #10: Public Works staff will assess the amount and locations of on- street ADA parking in the downtown, as well whether to add more ADA parking to the parking lot at Sinkiuse Square. Staff will report back to the City Council by the end of 2025. Road standards and residential street widths in relation to parking demand were discussed. Agreement #11: Include wider residential streets in the next Road Standards update. Council Retreat May 1-2, 2026, Page 15 of 65 6 The Lake Crossing was also discussed. Agreement #12:Create a “plan for a plan” to work with Grant County to decide on a location and commence the planning, funding, and design process to make it happen. Decide on a lake crossing location by the end of 2026. The I-90 interchange at Mae Valley, as well as the need for WSDOT to address safety and maintenance problems were discussed. Agreement #13: Add Mae Valley Interchange and Broadway improvements to the State Legislative agenda. Ramp up discussions with WSDOT. Homelessness Participants had a discussion to define more precisely the “plus” in the “one plus” level of City participation in human services that the City Council had agreed upon last April. The Councilmembers looked at three possible meanings of “one plus,” including the following: A. The City is not financially involved in human services and only encourages and promotes organizations that assist homeless individuals in physically getting them to facilities and services that are known to effectively help them recover and get back on their feet. B. The City is not financially involved in human services, with one exception. The City may enter into a limited contract with an organization that, on a 24/7 on-call basis, assists homeless individuals in physically getting them to facilities and services that are known to effectively help them recover and get back on their feet. C. The City is at level 2 involvement in human services (as discussed last April), where the City pays for a “navigator” or case worker to coordinate the spectrum of human and social services in the area. Agreement #14: Of the three options listed above, a majority of the participants selected Option B. Staff will prepare a draft request for proposals for the provision of 24-7 referral to services and transportation arrangements for the unhoused. The City Council adjourned day one of the retreat at approximately 5 pm. __________________________________________________________________________ Day Two: Thursday, June 12, 2025 Day two of the Moses Lake City Council retreat began at about 8:15 am in the Huck Fuller building at the Grant County Fairgrounds. City Councilmembers in attendance were Mayor Swartz, Deputy Mayor Madewell, and Councilmembers Meyers, Martinez, Fancher, and Skaug. The city manager, city clerk, and department heads were also in attendance. Mayor Swartz opened the meeting and asked City Manager Rob Karlinsey to facilitate day two of the retreat. Library Building The first topic of the morning was the library building. The City owns the building and, through a use agreement, allows the regional library district to provide library services in the building. The agreement expires at the end of this year (2025). If the City does not provide notice to end the Council Retreat May 1-2, 2026, Page 16 of 65 7 agreement by October 1 of this year, the agreement will renew for another year. Participants discussed the use agreement and whether the annual payment by the regional library district covered the City’s costs in maintaining the building, including capital replacement and rehabilitation costs (e.g., roofing, HVAC, etc.). Other cities in the library taxing district were also discussed, including whether cities that have elected not to be annexed into the library district but are receiving library services are paying a proportionate share of costs to the district. Participants also inquired about the revenue paid to the district by Moses Lake taxpayers and whether the library district was spending a similar amount on library services in Moses Lake. Agreement 15: Conduct an assessment of all of the City’s costs to maintain, operate, and preserve the building and determine whether the City is recovering its costs from the library district. Also compare what Moses Lake taxpayers contribute to the library district to what the district spends on library services in Moses Lake. City Manager Karlinsey recommends extending and amending the library building use agreement for one year (to December 31, 2026) in order to have time to conduct the building costs assessment. Community Development Councilmembers discussed the need to know about significant development applications in the permitting pipeline. Agreement 16: Community Development will provide a monthly report on applications for residential subdivisions of ten lots or more, new mulitifamily residential construction, and new commercial construction. The report will include a brief description, number of units, location, and status in the permitting and construction process. Ideas on how to improve permitting processes were discussed, including authorizing overtime for timely inspections, permitting software, and the results of Ben Yazici’s interviews with stakeholders. Participants also discussed how Moses Lake can aspire to be known for great customer service in its permitting processes. Blighted properties, revitalization, and infill development were the next topics. A number of ideas were discussed, including creating a defined area where certain change of use regulations (e.g., frontage improvements, parking minimums, fees, etc.) would be temporarily suspended to spur redevelopment (similar to Kenmore’s “Brew Row” experiment in the late 2010s). Maintaining properties and preventing buildup of garbage and debris was discussed, as was the need to maintain and beautify planter strips and keep sidewalks in good working order. Agreement 17: Community Development and Finance will contact Lakeside Disposal to schedule another neighborhood cleanup event, including the staging of dumpsters in certain locations throughout the City. Agreement 18: The City Council will hold a town hall on beautification, including potential code enforcement actions and/or changes in City code that can help beautify the City’s properties and neighborhoods. One of the purposes of this town hall and other beautification efforts will be to connect volunteers in the community with properties that need to be cleaned up (i.e. trash and vegetation removal). Participants discussed the need to preserve and expand affordable housing, including the continued use of the Multi-Family Tax Exemption. Agreement 19: Staff will assess the use of the MFTE program and provide recommendations to the City Council on whether or how to further expand it. Council Retreat May 1-2, 2026, Page 17 of 65 8 Further conversation on promoting infill and redevelopment continued, including development incentives for blighted areas, tax increment financing, and creating a downtown development district. Agreement 20: Staff will research and bring back options around creating a redevelopment district or other tool(s) for the downtown that will create and improve the downtown’s identity and overall economic vibrancy. The size of Moses Lake’s urban growth area was discussed. It was acknowledged that the size of the urban growth area will be considered in the upcoming comprehensive plan update. Whether to keep Cascade Valley in the City was also discussed, including the inability of the City to provide utility services to that area. Agreement #21: Begin the process to disincorporate affected properties in Cascade Valley. Economic Development Promoting more economic development, including attracting more retail. Mr. Karlinsey presented his economic development approach which is 80% Run a Good City and 20% develop key partnerships and seize strategic opportunities. It was suggested that the EDC be asked to help with attracting more retail, including reaching out to retailers and restaurants. The Main Street B&O tax credit was also discussed, including a possible plan to use more of the City’s credit through the Downtown Moses Lake Association to beautify and spruce up downtown. It was noted that the City’s match to access more of the B&O tax credit would need to be increased accordingly. An in-ground splash pad at Sinkiuse Square to help activate the downtown was discussed. Conversation about other economic development-related topics included electric power capacity, regional leadership and coordination, formation of a council of governments, and strategic planning and messaging around “who we are as a city” took place. Public Safety Fire services alternatives were discussed, and staff reported that the RFP for a consultant to study alternatives will be sent out soon. Participants talked about the need for a third fire station in the north end of the city and the possibility of finding a temporary location this year. Chief Sands reported on general crime statistics and participants discussed the possibility of moving forward with a new police station as previously planned and how to finance it. A brief update on the new animal shelter was provided, and Council directed staff to report back on the exact location of the new shelter. General City Operations IT Director Jim Richmond presented future ADA requirements for the visually impaired and raised the issues of costs and options for the City in responding to these requirements. Councilmembers raised the issue of finding efficiencies and if the rate of staffing increases has exceeded population growth. Various efficiency measures and budget savings ideas were discussed. Council Retreat May 1-2, 2026, Page 18 of 65 9 A service request portal software for citizen concerns is being investigated, and a city website redesign will need to take place in 2026. Continuous improvement and the specific need to improve permitting customer services was discussed. Communications to the public, “Top Picks” updates to the public, and project communications plans were discussed. Mr. Karlinsey proposed streamlining business regulations and making it easier to obtain a city business license. Other efficiencies, including document templates and forms, were mentioned. The growth in parks and associated maintenance costs was discussed, as was the park fee in lieu for new development. Parks & Recreation Director Doug Coutts proposed moving the “pea patches” or community gardens from the downtown to the neighborhood parks. City Council Priorities for 2026 After a break, the City Council created a list of seven top priorities for the 2026 budget period. After creating the list of priorities and measures of success for each priority, the City Council participated in a “paired comparison” exercise to list the priorities in order of importance. Each priority was voted on in comparison to every other priority. The votes were tallied, and the priorities were listed and numbered in the order of most to least votes. The resulting list of 2026 priorities, in priority order, are as follows: 1.Achieve Financial Sustainability Develop and adopt a 6-year financial sustainability plan (FSP) that keeps reserves for the Street Fund and General Fund above the City Council’s policy level of 15% of operating expenses; and that prevents expenses from exceeding revenues for the 6-year period. The FSP needs to include adequate infrastructure planning for adequate maintenance, replacement, and/or repair of existing infrastructure. By the end of 2026, resolve prior audit findings and achieve clean audits. 2.Secure Sustainable and Reliable Municipal Water Sources for the Long Term Fund, design, and construct the treatment facility for Well 29. Acquire water rights for well 34. Begin construction of Reservoir 10. Develop and implement a water sustainability strategy plan. Create a map of the city showing water projects underway or planned. 3.Improve the City’s Image and Reputation (communication, customer service, beautification, city pride, visioning) With the community’s help, develop positive vision and messaging and a plan to communicate it. Implement permitting process improvements. Hold a town hall event on beautification and adopt code revisions with an emphasis on junk, trash, junk vehicles, and weed control on major corridors. Facilitate volunteer opportunities to assist with code enforcement. Schedule a neighborhood cleanup event with Lakeside Disposal. 4.Choose and Implement a Fire Department Service Delivery Model and Plan for and Obtain Funding for a Third Fire Station in the North End of the City Council Retreat May 1-2, 2026, Page 19 of 65 10 Decide on a FIRE/EMS service delivery model, including solution for station 3 in the north end of the City. Implement the selected delivery model. Locate a temporary station in north-end in 2025 (either daytime or 24/7). 5.Plan for and Obtain Funding for a New Police Station Update the existing site and building plan design to understand costs. Develop a funding plan and work to secure funding according to the plan. 6.Identify a Second Lake Crossing Location Identify and obtain stakeholder approval of a second lake crossing location. Partner with Grant County, WSDOT, and other affected stakeholders. Prepare a realistic engineering estimate. Set a completion date for the new bridge. Prepare a funding plan. 7.Make Progress Toward WSDOT Highway Projects in Moses Lake Yonezawa/Highway 17 roundabout will be under construction by 2027 (bid ready in early 2027). Improve the working relationship with WSDOT and help WSDOT prioritize state highway needs in Moses Lake. Work with WSDOT to prioritize and construct improvements on Broadway, (including sidewalk repairs) and to reconfigure and upgrade the I-90 Mae Valley interchange. After the priorities for 2026 were established, the participants briefly reflected on what they accomplished over the two days of the retreat and adjourned at approximately 5 pm. Council Retreat May 1-2, 2026, Page 20 of 65 No.Task Name Assigned To Due date Completed Date Completed By Description 1 Council Committees - Amend Code Debbie Burke;Katherine Keniso 10/31/2025 12/9/2025 Debbie Burke Council agreed to discontinue the Council subcommittees. The subcommittee meeting schedule was eliminated and the code needs to be updated accordingly. 2 Rotation of Council Assignments on LTAC and Other Committees Debbie Burke;Katherine Keniso 10/31/2025 12/9/2025 Debbie Burke Create a policy on review of assignments to add to Council Rules. Then in January, have Council make committee assignments. Committee assignments were made 1/2026. At next retreat, would like the Council to discuss the need for this policy. 3 Council Mtg Agenda Changes Debbie Burke 10/31/2025 12/9/2025 Debbie Burke Removed mayor's report and city manager's report from the agenda, Pending Code updates with Council Committee Agreement No. 1. 4 No Invocations Policy Rob Karlinsey 07/22/2025 7/22/2025 Debbie Burke 5 Town Hall Meetings Rob Karlinsey 10/28/2025 10/28/2025 Council & Staff The City Council will host more town-hall style meetings, including one in the fall of this year (2025). The town hall took place on 10/28 at 5:30 pm. 6 Parliamentary Procedure Training Debbie Burke 09/09/2025 09/09/2025 Debbie Burke Contracted for Ann McFarlane to do remote training with Council, Planning Commission, and Board & Commission admins on September 9. 7 Transportation LOS Vivian Ramsey 06/30/2027 Transportation LOS will be included as part of the upcoming comprehensive plan update. 8 Water Strategy Session & White Paper Brian Baltzell 09/16/2025 09/16/2025 Leigh Ramsey Hold a water strategy session with the City Council. Prepare a strategy paper to present at the strategy session. The Water Strategy Paper was presented to the City Council on 9/16. Modifications and adoption of this Strategy Paper is expected by the end of October 2025. 9 Division Street Neighborhood Meeting Leigh Ramsey 9/30/2026 Hold a Division Street neighborhood meeting to get input on safety and throughput of automobiles. Neighborhood meeting will be held in late September 2026 to prevent community burnout by asking for community engagement on too many topics at once. 10 Assess ADA Parking Downtown Leigh Ramsey 01/31/2026 PW staff will assess the amount and locations of on-street ADA parking in the downtown, as well as whether to add more ADA parking to the parking lot at Sinkiuse Square. Staff will report back to the City Council by the end of June 2026. 11 Wider residential streets Leigh Ramsey 12/31/2026 Include wider residential streets in the next road standards update. Road standards will be introduced to the City Council on April 21. Staff discussed options and received direction from City Council on 4/21/2026. The updated 35' wide residential streets design will be included in the 2026 Community Street and Utility Standards (CSUS) update. The update will be proposed for adoption in May 2026. 12 Lake Crossing Rob/Leigh 12/31/2026 Rob/Leigh Create a "plan for a plan" to work with Grant County to decide on a location and commence the planning, funding, and design process to make it happen.We're working on a scope for a consultant to get a head start on the EIS. Update will be provided at the 5/1 council retreat 13 Mae Valley Interchange and Broadway Improvements Brian Baltzell 10/31/2025 Add Mae Valley Interchange and Broadway improvements to the State Legislative agenda. Ramp up discussions with WSDOT re: these improvements. In progress. 14 One Plus: RFP for 24-7 Referral/Transportation Services Liz Murillo-Busby 11/28/2025 11/28/2025 Liz Murillo-Busby Prepare a Request for Proposals for referral and transportation services for the unhoused. Select and be under contract with the selected contractor by the end of November 2025. The City conducted an RFP. As of 9/25, the committee has narrowed it down to two finalists. 15 Library Building Cost Assessment Brian Baltzell 10/31/2026 Conduct an assessment of all of the City's costs to maintain, operate, and preserve the library building. Determine whether the City is recovering its costs from the library district. Also compare what Moses Lake taxpayers contribute to the library district to what the district spends on library services in Moses Lake. Extend and amend the library use agreement for one year (to December 31, 2026) in order to have time to conduct the building cost assessment. Council Retreat May 1-2, 2026, Page 21 of 65 16 Monthly Report on Development Applications Vivian Ramsey 08/15/2025 Ongoing Comm Dev CD will provide a monthly report on applications for residential subdivisions of ten lots or more, new multifamily residential construction, and new commercial construction. The report will include a brief description, number of units, location, and status in the permitting and construction process. 17 Lakeside Disposal Cleanup Event UB & Code Enforcement 12/01/2026 4/25/2026 Code Enforcement CD and Finance will contact Lakeside Disposal to schedule another neighborhood cleanup event, including the staging of dumpsters in certain locations throughout the City. 8/26/2025 Cleanup, coordinated with Lakeside. Disposal took place on September 13, 2025. On April 25, 2026, held neighborhood cleanups at four locations. BBQ at the Knolls Vista location. 18 Beautification Town Hall Vivian Ramsey 6/30/2026 Scheduled for June The City Council will hold a town hall meeting on beautification, including potential code enforcement actions and/or changes in City code that can help beautify the City's properties and neighborhoods. One of the purposes of this town hall meeting and other beautification efforts will be to connect volunteers in the community with properties that need to be cleaned up (i.e., trash and vegetation removal). 19 MFTE Expansion Member 12/31/2026 Staff will assess the use of the MFTE program and provide recommendations to the City Council on whether or how to further expand it. Recommendations by March of 2026. Implement expansion by end of 2026. Recommend moving to 2027. Would like to explore turning over management of MFTE to Housing Authority. 20 Downtown Redevelopment Tools Rob Karlinsey 12/31/2026 Staff will research and bring back options around creating a redevelopment district or other tool(s) for the downtown that will create and improve the downtown's identity and overall economic vibrancy. 21 Cascade Valley Disincorporation Vivian Ramsey 12/31/2026 Begin the process to disincorporate affected properties in Cascade Valley. 08/25/2025 Spoke with Alison May about the disincorporation. Ms. May owns several properties in the Willow Crest subdivision and is supportive of the action. She has concerns about the homes that will be built in the "between" time. That they will not need to put in the sprinkler system after disincorporated. Vivian Ramsey to reach out to property owner to gauge interest. Council Retreat May 1-2, 2026, Page 22 of 65 Council Retreat May 1-2, 2026, Page 23 of 65 Council Retreat May 1-2, 2026, Page 24 of 65 Council Retreat May 1-2, 2026, Page 25 of 65 From: Don Myers <dmyers@cityofml.com> Sent: Thursday, June 12, 2025 6:22 AM To: Rob Karlinsey <rkarlinsey@cityofml.com> Subject: Re: Greatest City in America Article Moses Lake, Reimagined: A Decade of Transformation by the Water Once a quiet town with promise on the horizon, Moses Lake has emerged as one of Central Washington’s most vibrant and livable communities. Over the past decade, the city has embraced its greatest asset—the lake—and turned it into a defining centerpiece of daily life, local identity, and shared progress. A Boardwalk That Connects More Than Parks The most visible sign of this transformation is the Lakeside Boardwalk Project—a collection of connected segments that wind along key stretches of public shoreline from Neppel Park to Blue Heron Park. Rather than disrupting the character of private lakeside homes, the boardwalk was thoughtfully designed as a series of accessible segments linked by paved trails. These trails guide walkers, runners, and cyclists through quiet neighborhoods, native wetlands, and curated public spaces to the next lakeside view. Each boardwalk segment offers its own atmosphere: some feature wide decks with gathering spaces and shaded benches; others hug the water more closely, giving walkers the sensation of skimming the lake’s edge. The effect is peaceful, energizing, and entirely unique to Moses Lake. The Drift: A Café that Floats Between Worlds Just off one western boardwalk segment sits "The Drift", a floating café that’s become one of Moses Lake’s signature gathering places. Reached by a short pier, the structure seems to hover just above the water, all clean lines, soft light, and natural textures. Inside, it’s warm and airy, with panoramic windows that frame the lake in every direction. Seating spills onto a surrounding deck Council Retreat May 1-2, 2026, Page 26 of 65 where you can hear the quiet movement of water below. Live acoustic sets often play in the background, and the atmosphere is intentionally unhurried. The café offers a seasonally inspired menu, but most come for the space itself—a place to meet, relax, and take in the lake in an entirely new way. Whether it’s families catching up over morning coffee, remote workers perched with laptops in the afternoon sun, or couples watching the sky change colors in the evening, The Drift has become a true community anchor—part refuge, part social hub. A City That Knows How to Celebrate Moses Lake has always had heart, but now it has the venues—and the vision—to bring its community together like never before. Each spring, SpringFest takes over the shoreline with three days of music, food trucks, street vendors, and family events that spill from the parks onto the boardwalks. What was once a small-town fair is now a regional event that draws visitors from across the state, while still holding onto its small-town soul. In summer, a new tradition has taken hold: the Moses Lake Boat Parade, where pontoons, kayaks, paddleboards, and small crafts are decorated in lights and themes, drifting past cheering crowds on the shore. It’s an evening of creativity, laughter, and lakeside celebration that feels destined to become a cherished institution. A Place to Live, Not Just Visit Moses Lake’s transformation has been more than cosmetic—it’s deeply structural. Families are planting roots here, drawn by affordable neighborhoods, excellent schools, and a strong sense of community. The city has seen growth not just in population, but in purpose. Investments in clean industry, agriculture technology, and small business incubation have sparked new job opportunities, while preserving the quiet pace and accessibility that longtime residents cherish. The lake has become a living part of daily routines—not just a view. Council Retreat May 1-2, 2026, Page 27 of 65 Kids explore local wildlife through hands-on shoreline programs, teens find community meeting spots along the boardwalk as the sun sets, and adults enjoy paddling, picnicking, and countless activities that strengthen their connection to the water and to one another. Moses Lake’s transformation is about more than development— it’s about creating a community where people want to live, gather, and grow. Here, the lake is more than a landmark; it’s a shared space that brings everyone a little closer together. Don Myers 5097508506 Don Myers Council Member City of Moses Lake 509-750-8506 | dmyers@cityofml.com www.cityofml.com Council Retreat May 1-2, 2026, Page 28 of 65 City of Moses Lake Progress Toward City Council Priorities for 2026 Update for May 1 & 2, 2026 City Council Retreat The City’s top priority will always be fulfilling its core mission, which includes ensuring public safety, maintaining the City’s infrastructure, complying with state and federal mandates, and safeguarding the City’s finances. With this context, the City Council can emphasize certain initiatives or address specific problems through its priority-setting process each year. These priorities for the 2026 budget are described as follows: 1.Achieve Financial Sustainability Develop and adopt a 6-year financial sustainability plan (FSP) that keeps reserves for the Street Fund and General Fund above the City Council’s policy level of 15% of operating expenses; and that prevents expenses from exceeding revenues for the 6-year period. Financial Sustainability Plan scheduled to be adopted on April 28, 2026 The FSP needs to include adequate infrastructure planning for adequate maintenance, replacement, and/or repair of existing infrastructure. FSP includes $1.8 million per year placeholder for facilities capital replacements. Facilities needs assessment will update that estimate. Funding for pavement preservation is included in the six- year CIP. By the end of 2026, resolve prior audit findings and achieve clean audits. We have filed 2022 and 2023 financial statements with the State Auditor’s office. We are working on the 2024 financial statements and will file them as soon as possible, knowing that updates will likely need to be made to 2023 and 2024 once the 2022 audit is completed. We are continuing to work with the auditors on the 2022 financials to ensure the accuracy of the beginning balances after the GAAP to cash conversion. When the 2022 financials have been completed and any adjustments are made, we will amend the 2023 financials with any changes to beginning fund balances and refile the statements. The process will continue this way until we have filed the 2024 and 2025 financial statements, which we are still targeting to have completed by May 30, 2026. We are working closely with the audit team and have weekly status update meetings with them. The auditors have provided instruction and guidance on schedules and other information that finance staff were unfamiliar with or unclear on and have been invaluable in their partnership with the City to get us caught up on the audits. We are continuing to work on resolving the prior audit findings and will likely receive audit findings, management letter or exit items due to the late filings of the 2022 – 2024 audits as the auditors discussed in the entrance conference for the 2022 audit. Once the 2022 audit is completed, Council members will be invited to an exit conference to discuss the audit results with the audit team and answer any questions that Council may have. Council Retreat 2026 - Revised pg 29-31 The Auditors are still anticipating working on the 2023 audit beginning in May, but do not yet have a timeframe for when the 2023 audit would be completed. The 2024 and 2025 audits would not be started until sometime in the fall of 2026. 2. Secure Sustainable and Reliable Municipal Water Sources for the Long Term Fund, design, and construct the treatment facility for Well 29. Acquire water rights for well 34. Well 29: Funding has been secured from both Washington State and the US Government through direct appropriation requests. The contract with WA State Department of Commerce has been executed, but we are waiting on the contract for the federal funds. Our lobbyist has recommended we wait to take additional action on any contract until the federal contract has been executed as it could prevent us from getting full reimbursement. Staff have reached out to check on status of federal funds and will update council once an update is received. The preferred treatment method has been identified. Staff are ready to start the bid process for design or design/build as soon as the contract has been executed for the federal funds. Well 34: Well 34 is approximately at 30% design. Until additional shallow water rights are secured, we are unable to utilize this well. City staff will be meeting with Department of Ecology on 4/28/26 to discuss whether the Bureau of Reclamation agrees with an identified legal pathway to secure additional shallow groundwater rights. Meanwhile, staff and Aspect Consulting (Geonsyntec) are still actively seeking shallow groundwater on the open market. Once additional water rights are secured, staff will move forward with design and permitting of the Well 34 pumphouse and manganese treatment system. Begin construction of Reservoir 10. Funding will come from the revenue bonds that are planned to be issued in 2027. Staff will continue to look for additional external funding sources and will bring any pertinent options to council for consideration. Our contracted consultant is completing final re-design of the slightly smaller tank as directed by Council in late 2025. Plans are roughly 90% complete. Until funding is secured, staff will not be preparing the final bid package or final plan set in case of changing regulations. We have been approached by an adjacent property owner asking us to relocate part of the infrastructure needed for the reservoir to accommodate a new driving range. Staff have reached out to our consultant to determine estimated costs and project delays if an additional redesign is requested. If moving forward, the developer/adjoining property owner would be required to pay for any staff time and consultant costs associated with a developer driven relocation/redesign (including additional permitting, easements, etc.). Develop and implement a water sustainability strategy plan. Plan was adopted by City Council in December 2025. Staff have been actively working towards the goals outlined in the plan. Council Retreat 2026 - Revised pg 29-31 Create a map of the city showing water projects underway or planned. This map will be created when the water source comparison analysis is complete. 3. Improve the City’s Image and Reputation (communication, customer service, beautification, city pride, visioning) With the community’s help, develop positive vision and messaging and a plan to communicate it. Implement permitting process improvements. Transition to Permit Center underway. Permits Coordinator position created and filled. Streamlined permit process by consolidating building & fire permits. Revamp of frontend portal ready to launch. Next: backend system revamp to be completed by early 2027. Improvements have already been made. A series of code amendments to streamline, simplify, and/or deregulate have been adopted: 2025 docket and mobile food vendors/food courts. Hold a town hall event on beautification and adopt code revisions with an emphasis on junk, trash, junk vehicles, and weed control on major corridors. Scheduled for June 16, 2026 Facilitate volunteer opportunities to assist with code enforcement. Work in progress Schedule a neighborhood cleanup event with Lakeside Disposal. Cleanups held on September 13, 2025 and April 25, 2026 4. Choose and Implement a Fire Department Service Delivery Model and Plan for and Obtain Funding for a Third Fire Station in the North End of the City Decide on a FIRE/EMS service delivery model, including solution for station 3 in the north end of the City. Report delivered in March 2026 Implement the selected delivery model. Locate a temporary station in north-end in 2025 (either daytime or 24/7). See options outlined in Chief Perillo’s memo dated April 10, 2026 5. Plan for and Obtain Funding for a New Police Station Update the existing site and building plan design to understand costs. On hold pending future funding. Develop a funding plan and work to secure funding according to the plan. On hold due to other priorities in the FSP. Possible future voter- approved bond measure: 2028? Council Retreat 2026 - Revised pg 29-31 6. Identify a Second Lake Crossing Location Identify and obtain stakeholder approval of a second lake crossing location. Partner with Grant County, WSDOT, and other affected stakeholders. Interlocal Agreement to Conduct EIS approved April 2026 Prepare a realistic engineering estimate. Will be part of the EIS. Set a completion date for the new bridge. To be determined. Prepare a funding plan. Submitted earmark request for EIS. The completed EIS will open up funding opportunities. Obtained six letters of support from the Port, School District, Chamber, EDC, BOCC, and WSDOT. 7. Make Progress Toward WSDOT Highway Projects in Moses Lake Yonezawa/Highway 17 roundabout will be under construction by 2027 (bid ready in early 2027). Improve the working relationship with WSDOT and help WSDOT prioritize state highway needs in Moses Lake. Staff have held multiple meetings with North Central Region WSDOT staff, including the regional administrator. Work with WSDOT to prioritize and construct improvements on Broadway, (including sidewalk repairs) and to reconfigure and upgrade the I-90 Mae Valley interchange. At last meeting with WSDOT, next steps for Mae Valley Hansen Road/Frontage Road/On-Off Ramp intersection was discussed, including RFP for design. Working with WSDOT to obtain design funds for Broadway Council Retreat 2026 - Revised pg 29-31 City of Moses Lake Memorandum To: City Manager Karlinsey From: Art Perillo, Fire Chief Date: April 10, 2026 Subject: Council Goal Progress Financial Sustainability Plan: Developing a six-year plan to keep fund reserves stable Optimized GEMT Reimbursement Strategy: Restructured expenses to maximize Ground Emergency Medical Transport (GEMT) reimbursement revenue. The department has reviewed and adjusted the 2024 HCA cost report and is currently reworking and resubmitting the 2025 cost report. Final impacts will be determined following auditor review; however, early indications suggest an increase in the cost- based reimbursement rate if accepted. Enhanced Ambulance Billing Practices: Partnered with our billing vendor to develop targeted training aimed at improving documentation accuracy and increasing collection rates. The 2025 ambulance billing collection rate is approximately 40%. While several external factors influence collections, our efforts are focused on controllable variables. A typical industry benchmark ranges between 50%–60%. Implemented Scene Mitigation Billing: Initiated cost recovery billing for traffic accidents and fire responses. Since its implementation in late February 2025, over $7,000 in invoices have been issued to insurance providers. Reduced Technology Costs (YubiKey Implementation): Deployed YubiKeys for multi-factor authentication, eliminating reliance on city-issued cell phones and reducing recurring service costs. This change is projected to save approximately $20,000 annually. Eliminated Underutilized Software: Discontinued select software subscriptions to reduce operating expenses, including Standard Operating Procedure software that did not align with fire service needs. This adjustment is expected to save approximately $10,000 annually. Council Retreat May 1-2, 2026, Page 32 of 65 Improved Procurement and Inventory Management: Strengthened purchasing practices by continuously evaluating vendors to ensure competitive pricing on EMS supplies. While savings are influenced by market conditions, the primary objective is cost control and efficiency. Additionally, the department is implementing standardized par levels for station supply rooms to reduce over-ordering and improve inventory tracking. Optimized Turnout Gear Allocation: Transitioned from individually assigned second sets of turnout gear to a shared access model. This approach maintains compliance with cancer reduction best practices while reducing overall inventory, replacement costs, and outfitting expenses. Public Safety & Service Level Management: Planning for a third fire station in the north end, upgrading the police station, and reviewing service levels (core vs. discretionary) in the budget. A critical component of improving service delivery is enhancing communication between field personnel and dispatch. In partnership with MACC, the department will be reimbursed up to $20,000 to implement Mobile Communication Terminals (MCTs) in frontline emergency response units (excluding brush vehicles). The implementation of MCTs will improve operational efficiency and service outcomes by enabling real-time unit tracking and supporting the future capability to dispatch the closest, most appropriate unit. Additional benefits include more accurate response time data, reduced radio traffic, and reduced dispatch workload. These improvements will allow dispatchers to more effectively support responders in the field, ultimately enhancing the level of service provided to the community. To address current and future service demands in the north area, the department is partnering with ASPI to secure a donated parcel for the development of a permanent fire station. Concurrently, coordination with the Port of Moses Lake to use one of their parcels as a temporary station location to improve response times in the near term. Temporary Station 3 Options To improve service levels in the north area while a permanent station is being developed, the following options are under evaluation: Option 1: Utilize the building at 6533 24th Ave. for apparatus storage while relocating the former police gun range trailer to serve as living quarters (sleeping areas, restrooms, office space, and dayroom). Estimated cost: $84,000 (relocation) + $100,000 (remodel and furnishing) Additional costs: utilities (water, sewer, power) Benefit: Provides indoor apparatus storage and improved operational readiness Council Retreat May 1-2, 2026, Page 33 of 65 Option 2: Relocate the trailer to a donated ASPI site for use as a temporary station. Estimated cost: $84,000 (relocation) + $100,000 (remodel and furnishing) Additional costs: utilities (water, sewer, power) Limitation: No indoor apparatus storage and reduced operational effectiveness during the winter months Option 3: Lease a modular fire station at either site until construction of the permanent station is complete. Estimated cost: approximately $30,000 per month furnished Benefit: Purpose-built solution with faster deployment and full operational capability Permanent Station 3 Options Option 1: Demolish the existing structure and construct a new fire station at 6533 24th Ave. while leasing the land from the Port of Moses Lake. Option 2: Construct a new fire station on land donated by ASPI, providing a long-term solution aligned with projected growth in the north area. Art Perillo ART PERILLO Fire Chief Council Retreat May 1-2, 2026, Page 34 of 65 City of Moses Lake, Washington Memorandum 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov Date: April 23, 2026 To: Rob Karlinsey, City Manager From: Madeline Prentice, Finance Manager Regarding: SAO Audit Report Briefing Update ______________________________________________________________________________________ The Washington State Auditor’s Office (SAO) is responsible for performing a range of audits for local governments. The SAO performs financial statement and federal single (grant compliance) audits of the City’s financial statements and grants annually. This audit is known as the Financial Statement and Federal Single Audit. They also perform and audit over compliance with federal or state laws, rules or the City’s own policies and procedures every three years. This audit is known as the Accountability Audit. At the conclusion of the audits, the auditors prepare a summary report identifying the specific areas of the City’s operations that were examined and identify areas of concerns. Auditors have three levels of reporting to communicate areas of concern identified during an audit: Findings report significant results of the audit, such as significant deficiencies and material weaknesses in internal controls; misappropriation; and material abuse or non-compliance with laws, regulations or policies. Findings formally address issues in an audit report. Management letters communicate control deficiencies, non-compliance, misappropriation or abuse that are less significant than a finding, but still important enough to be formally communicated to the governing body. Management letters are referenced but not included in the audit report. Exit items address control deficiencies, non-compliance with laws or regulations, or errors that have an insignificant effect on the audit objectives. These issues are informally communicated to management. The last Financial Statement and Federal Single Audit completed was for the period from January 1, 2021 to December 31, 2021, and the last Accountability Audit was for the period from January 1, 2021 to December 31, 2023. In both audits, the City was issued all three levels of reporting identified above. The City is working hard to resolve the issues identified in the last audits. Listed below, each finding, management letter, and exit item is identified, with a brief description of the condition, the auditors’ recommendations and the corrective actions undertaken to date to resolve the issue. Council Retreat May 1-2, 2026, Page 35 of 65 City of Moses Lake, Washington Page 2 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov 2021 Financial Statements and Federal Single Audit - Finding #2021-001 The City’s internal controls over accounting and financial statement preparation were inadequate for ensuring accurate and complete financial reporting. Description of Condition: The City prepares multi-fund financial statements in accordance with GAAP. These financial statements are complex, and the reporting requirements change frequently. The City experienced turnover in its accounting staff over the past several years. As a result, staff responsible for financial reporting lacked the technical training and experience necessary to apply the correct accounting technical training and experience necessary to apply the correct accounting treatment specific to certain transactions and balances. State Auditors Recommendations: •Evaluate funds for proper major fund reporting and correctly report funds as major funds in accordance with accounting standards •Calculate and report net investment in capital assets and restricted net position associated with pension correctly and in accordance with accounting standards •Evaluate interfund activity to properly report revenues, expenses and net transactions when applicable Finally, the City should dedicate adequate time and resources for staff to comprehensively review the completed financial statements for consistency with reporting requirements. Corrective actions: Effective with the 2022 financial statements, the City has converted from a GAAP basis reporter to a Cash basis reporter. Moving to this form of reporting alleviates the need for a 3rd party software to prepare the financial statements, as was necessary under GAAP reporting. We have filed the 2022 financial statements with the State Auditor’s Office under the cash basis of reporting, and the 2022 audit kicked off on February 4th with two auditors onsite who began reviewing records related to the federal single audit (federal grants). We are continuing to work with the State Auditor’s to finalize the 2022 audit and have weekly status updates with them on any outstanding items they have. There will be adjustments to the 2022 financial statements that will lead to adjustments in the 2023 financial statements that were submitted on April 9th. The 2023 financial statements were submitted to the State Auditor’s Office on April 9, 2026, and we are awaiting notification from them for the start of the 2023 audit. We are continuing to move forward with the 2024 and 2025 financial statement preparations and will file 2024 and 2025 financial statements as soon as they are completed with a goal of filing the reports by the annual report deadline of May 30, 2026 (150 days after the fiscal year end) or earlier. All staff have or will receive appropriate BARS training courses and other relevant courses throughout the year as they are available to increase the knowledge and skills of the accounting team. Four staff members have already attended an intensive weeklong Council Retreat May 1-2, 2026, Page 36 of 65 City of Moses Lake, Washington Page 3 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov financial bootcamp presented by MRSC. Other staff members will be scheduled to attend the same bootcamp as they become available. This course runs the gamut of key internal documents, processes, policies, financial information, budgets, BARS, and reporting required of municipalities by the State Auditor’s Office and is a course recommended for clerk/treasurer, treasurer, finance director, accounting supervisor/assistant and others working in governmental finance. 2021 Financial Statements and Federal Single Audit - Finding #2021-002 The City did not have adequate internal controls for ensuring compliance with federal suspension and debarment requirements. Description of Condition: Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the City enters into contracts or purchases goods and services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify that the contractors are not suspended, debarred or otherwise excluded from participating in federal programs. The City may verify this by obtaining a written certification from the contractor, adding a clause or condition into the contract that states the contractor is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The City must verify this before entering into the contract and must maintain documentation demonstrating compliance with this federal requirement. Our audit found the City did not have adequate controls to verify two contractors it paid more than $25,000 in federal funds were not suspended or debarred from participating in federal programs. State Auditors Recommendations: We recommend the City strengthen internal controls to ensure all contractors it pays $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs before contracting with or purchasing from them. Corrective actions: Contracts now include a clause in the contract and contractors are required to submit certification that they are not suspended or debarred before executing the contract or upon proposal submission. Contractor licenses are reviewed on the Washington State Department of Labor & Industries (L&I) website and checked for suspension or debarment. Copies of the verification are maintained with the project files. Additionally, a new internal procedure has been developed with specific instructions for staff to check the SAM.gov website for suspended or debarred contractors prior to awarding contracts of $25,000 or more to any contractor or vendor. This requirement is especially critical if federal funds are being used for the project and specific documentation must be maintained with the contract file as proof for the auditors. This procedural document has been distributed to staff who are responsible for monitoring and managing City projects or programs as well as instructions for providing Finance with documentation particularly as it relates to projects with federal grant funding. Council Retreat May 1-2, 2026, Page 37 of 65 City of Moses Lake, Washington Page 4 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov 2021 Financial Statements and Federal Single Audit - Management Letter Items Schedule of Expenditures of Federal Awards Reporting City management is responsible for designing, implementing and maintaining internal controls that provide reasonable assurance the City’s Schedule of Expenditures of Federal Awards (SEFA) is reliable and fairly presented. This schedule lists all the City’s federal programs and the total amount of federal money it spent for the fiscal year. The City reports its SEFA using the accounting practices prescribed by the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). While the City’s finance department has a process to report federal program expenditures, its internal controls were insufficient for ensuring the SEFA only reported federal expenditures incurred during the fiscal year. As a result, the City overstated federal expenditures for its Emergency Solutions Grant Program (ALN 14.231) and Public Safety Partnership and Community Policing Grants (ALN 16.710) by $498,100 and $89,400, respectively, on its SEFA. The City subsequently corrected these errors. We recommend the City improve controls over identification of federal programs and its reporting requirements to ensure the SEFA is accurate and complete before submitting it for audit. Corrective Actions: Grant reimbursement requests that are submitted at year-end are generally not reimbursed until the first or second month of the new year. Finance staff did not review the grant reimbursements beyond year-end to determine the appropriate period to report them in. Going forward, a year-end process has been put in place to review grant funds received in the first two months of a new year to determine if there were funds received after the year-end that need to be included in the year-end SEFA report. Additionally, staff inadvertently reported revenues rather than expenditure on the SEFA and have since received further training on the correct reporting requirements and necessary reviews to ensure the reports are accurate before submitting. We are continuing to review and monitor this reporting requirement and staff have received further instruction/training on completing the SEFA report from the State Auditors who have provided valuable assistance to staff who were unfamiliar with this report. Council Retreat May 1-2, 2026, Page 38 of 65 City of Moses Lake, Washington Page 5 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov 2021 Financial Statements and Federal Single Audit - Exit Items: Related party transactions The City does not have a formal year-end process to evaluate related-party transactions for potential disclosure. We recommend the City establish and document a formal evaluation of potential related- party transactions to ensure that significant transactions and relationships are appropriately disclosed in the City’s financial statements. Corrective Actions: The City has implemented a year-end process whereby elected officials and key employees complete a “statement of affiliations” form which identifies organizations, business affiliations and/or boards that the elected official or key employee (or their spouse) are owners or part-owners of. These are reviewed and compared against the general ledger to determine if there are significant transactions that need to be disclosed in the City’s financial statements. Buildings and improvements The City did not capitalize substantially completed assets of about $44,533 in its governmental activities and did not correct this in the final financial statements. We recommend the City report substantially completed assets correctly and in accordance with accounting standards. Corrective Actions: The finance staff reviews all assets to determine the status of the project at year-end. With the move to cash basis reporting in 2022, capital assets are recorded as capital expenditures when purchased. A review of capital projects at year- end is completed to ensure costs are accurately reported in the general ledger. Incorrect reporting of revenues between City funds The City incorrectly reported revenues between City funds on the Statement of Revenues, Expenditures and Changes in Fund Balances. The following errors were identified: •Affordable and Supportive Housing revenues (part of Aggregate Remaining) is overstated by $68,435 due to the City receipting grant funds into this fund by mistake. The grant funds should have been reported in a separate fund. •Public Transportation revenues (part of Aggregate Remaining) is understated by $194,181 due to the City incorrectly recording revenue earned by this fund (170) to a separate fund (119). We recommend the City evaluate activity to properly report revenues. Corrective Actions: The Finance Director prepares a quarterly review and report to Council. During this review, all funds are reviewed and discussed. If a transaction is in question, the Finance Director researches or has finance staff research transactions to Council Retreat May 1-2, 2026, Page 39 of 65 City of Moses Lake, Washington Page 6 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov ensure that they are properly reported in the appropriate fund. Corrections, if necessary, are made by the Accountants in the Finance Department and reviewed by the Accounting Manager or Finance Director prior to posting. A monthly variance analysis is also completed by the Accounting Manager and reviewed with the Department Director or Managers. If discrepancies are identified, research is conducted by the Accounting staff and if corrections are necessary, the accounting staff prepare correcting journal entries that are reviewed by the Accounting Manager or Finance Director prior to posting. Procurement - cost price analysis Uniform Guidance and City policy require the City to perform a cost or price analysis for federal purchases exceeding the simplified acquisition threshold. For two Emergency Solutions Grant contracts which exceeded the simplified acquisition threshold, the City did not have sufficient documentation supporting the cost or price analysis, as required. We recommend the City improve internal controls to ensure a cost price analysis is documented as required for federal procurement actions in excess of the simplified acquisition threshold. Corrective Actions: City staff responsible for the Emergency Solutions Grant during this time were not familiar with the requirement to prepare and document a cost price analysis for federal purchases exceeding the simplified acquisition threshold. Since this time, staffing has changed and new staff are aware of federal procurement requirements. Finance staff will also periodically review programs to ensure compliance with federal procurement requirements. 2021 – 2023 Accountability Audit Finding - #2023-001 The City lacked adequate internal controls over financial reporting to ensure compliance with state law requiring timely annual report submissions. Description of Condition: The City did not submit the required annual reports to our Office within 150 days of fiscal year-end. The City filed its 2021 annual reports 515 days late. The City has not filed its 2022 and 2023 annual reports. We reported this issue as a finding in the prior audit. State Auditors Recommendations: We recommend the City establish internal controls to ensure timely financial reporting in accordance with state law. Corrective actions: The City continues to struggle with an inadequate financial reporting system that requires significant time and resources to ensure accurate reporting. The City is changing the financial reporting basis from GAAP to Cash basis reporting effective with the 2022 financial reporting period. This change will eliminate reliance on an external 3rd party software. The City is working with a 3rd party accounting firm to assist us with converting the 2022 beginning fund balances from GAAP to cash basis and we submitted the 2022 financial reports to the Washington State Auditor’s Office (SAO). The Council Retreat May 1-2, 2026, Page 40 of 65 City of Moses Lake, Washington Page 7 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov 2022 audit of the financial statements kicked off on February 4, 2026 with two auditors on site to begin the audit work. The 2023 financial statements have now been filed with the SAO. Until the 2024 annual report is filed, we will continue to receive this audit finding provided that the 2025 financial statements are filed by the reporting deadline. The City will continue working with the outside accounting firm to assist us in preparing the 2024 and 2025 financial reports as the financial system we are using cannot convert the financial transactions from GAAP to cash basis reporting. The Finance Department is committed to ensuring that the outstanding financial reports (2024) and the current year’s financial report (2025) are filed by the reporting due date of May 30, 2026 if not earlier. 2021 – 2023 Accountability Audit Finding - #2023-002 The City lacks internal controls for ensuring it consistently and equitably allocates Equipment Rental and Revolving fund costs. Description of Condition: The City charges annual operating, capital and reserve fees to each department and fund that rents equipment. The operating fee covers the budgeted administration and operation expenses of the ER&R fund, while the capital and reserve fees cover the budgeted cost of future equipment purchases. The City reconciled and adjusted ER&R charges for 2021 in the amount of $2.1 million to ensure it charged departments and funds equitably. However, the City did not reconcile and adjust ER&R charges for 2022 and 2023. State Auditors Recommendations: We recommend the City follow its allocation and reconciliation process for ER&R costs to ensure it follows fair and equitable methods for allocating ER&R costs to departments and funds that rent equipment. In addition, we recommend the City complete its year-end reconciliation and adjustment for each year to reflect the actual costs that should be allocated, based on the rentals by the specific departments or funds. Corrective actions: The City is working to update and implement processes and procedures to ensure accurate and fair allocation of costs to departments for the use of equipment and vehicles. While we believe that we have made improvements to the process of charging departments, we know we still have additional improvements to make and will be reviewing the allocation of ER&R costs as well as Building Maintenance, Technology Services, and Administration overhead costs to departments. In addition to implementing year-end reconciliation procedures, during the 2026 budget process, the City prepared six-year capital plans for Fleet and Building Maintenance, which identifies all projected Fleet purchases of equipment and Building improvements for the next six years and identifies the anticipated funding source for the expenditures and ensures proper reserves are being built-up to pay for future capital purchases. These capital plans will be updated annually each year going forward to ensure we are allocating costs appropriately. Council Retreat May 1-2, 2026, Page 41 of 65 City of Moses Lake, Washington Page 8 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov 2021 – 2023 Accountability Audit - Management Letter Items: Personal Use of Fleet Management Purchases On February 9, 2024, the City notified our Office regarding a potential loss of public funds, as state law requires. The City initiated an investigation and filed a police report with the City of Moses Lake Police Department. The Police Department’s investigation determined the City’s Fleet Manager purchased vehicle and equipment parts totaling about $3,015 for personal use through the City’s vendor accounts. We reviewed the Police Department’s investigation and determined that from April to November 2023, the City’s Fleet Manager misappropriated at least $2,269 to purchase vehicle and equipment parts for personal use. The City subsequently terminated the Fleet Manager. Through the investigation, we also identified: Additional misappropriation of $552 for vehicle parts purchased October 30, 2023, for which we could not assign responsibility. However, according to the police investigation, the parts purchased would fit a vehicle model that the Fleet Manager owned. Questionable purchases of $194 for vehicle and equipment parts purchased June 20, 2023 We recommend the City strengthen internal controls over fleet maintenance orders, including monitoring to ensure employees do not purchase vehicle and equipment parts for personal use. We also recommend the City seek recovery of at least the $2,269 in misappropriation and related investigation costs of $4,418 from the former Fleet Manager and/or its insurance bonding company, as appropriate. Any compromise or settlement of this claim by the City must be approved in writing by the Attorney General and State Auditor, as directed by state law (RCW 43.09.260). Corrective Actions: The City filed charges with the Grant County Prosecuting Attorney against the former employee responsible for the misappropriation for recovery of the funds and related investigation costs. The case is now closed with the former employee pleading guilty as charged to 2nd degree theft. The City has filed for restitution to recoup wages/benefits, investigation, and misappropriated costs associated with the case. Additionally, the new Fleet Manager has implemented internal control processes and procedures that ensure this type of activity does not happen again. Safeguarding of Property The City lacked controls to ensure all evidence taken into the Police Department property room was secured and accounted for. The City completed its most recent full review of property room inventory in 2021. During September 2021 the City identified 224 items that could not be located. In November 2024, the City had yet to account for about 130 of Council Retreat May 1-2, 2026, Page 42 of 65 City of Moses Lake, Washington Page 9 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov these items, including about $550 in cash. According to City management, they do not believe these items are still missing and will confirm this when they complete the full reconciliation. We recommend the City take steps to ensure employees follow its system of internal controls for safeguarding of property in the Police Department property room. Specifically, the City should perform an annual inventory reconciliation, follow up on differences and ensure that documentation is retained when disposed, moved or transferred. Corrective Actions: Since becoming aware of this issue, we have given additional resources to our Evidence Technician to clear up not only the auditor’s concern, but the evidence area in general. During this time, we discovered the issues were more than just the former employee misplacing items, they also made a significant computer error that “moved” 3,000 items from their locations in the evidence system. For the “missing” items, utilizing a more reasonable than not standard, we have accounted for all but four items. As most of the items were associated with other pieces of evidence, we researched each case and found the other items involved were either destroyed or returned to the owner. As we no longer possessed the items and did not receive requests for those items, it is reasonable to believe they were either destroyed or returned. Our fix put in place for this issue moving forward is to ensure nothing moves out of control of the evidence room without first completing the computer entry. We also put in place a policy that another person must confirm this is done before the items are released or destroyed. For the items that were “moved” in the computer system, our Evidence Tech has been working to locate every item as either destroyed, returned, or still in our system. Once the investigation into the missing items and the other “moved” items were located, an audit was conducted on various high risk and miscellaneous evidence items to ensure the new procedures were being followed. The audit found some items had been erroneously placed but were accounted for and fixed. Moving forward later this year or early into 2027 we will conduct a 100% audit of the evidence room. We are hoping to reduce our high volume of items in 2026, making it easier to conduct a 100% audit as well as manage the system. 2021 – 2023 Accountability Audit - Exit Items: Safeguarding of Theft-Sensitive Assets The City identifies theft-sensitive assets as assets with a value between $300 and $5,000. However, we found that certain departments, such as public works, have different Council Retreat May 1-2, 2026, Page 43 of 65 City of Moses Lake, Washington Page 10 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov thresholds. In addition, there is no monitoring in place to see if departments are following City-wide standards. Additionally, we found that certain assets had multiple asset tags and entries in asset listings, and some of these entries were outdated. Without effective monitoring, the City cannot verify if City-wide standards are being met. We recommend the City improve its controls over theft-sensitive assets, which should include formalizing and communicating City-wide standards, effective monitoring of other departments to ensure City-wide standards are being met and updating asset listing to verify all identifying information, such as asset tag numbers, are completely accurate. Corrective Actions: As part of the implementation of a new ERP system, the City is undergoing a complete evaluation of all assets held in the City to ensure the new system is implemented with the most accurate data and doing a cleanup of asset records as part of this process. Additionally, the Finance Department recognizes the need to revise and update not only its financial policy, but the City’s purchasing policy to reflect changes that have occurred or will change with the new system as well as changes that have been made in state law. The threshold for theft-sensitive assets and capital assets, in addition to the process for safeguarding all assets will be reviewed during the update and communicated to all employees upon adoption of the revised/updated policy by City Council. Periodic spot checks will be implemented and completed as part of the update, as well as an annual review and audit of theft sensitive assets will be conducted. Utility Billing and Adjustments The City has a policy in place that requires approval for utility billing adjustments, but there is not consistent documentation of this approval. We found 11 out of 24 utility adjustments did not have documented review and approval. In reviewing support for these adjustments, we determined that they were valid. We recommend the City document review and approval of all utility billing adjustments to demonstrate compliance with City policy. Corrective Actions: The Utility Billing Department under Finance implemented a process for utility refunds utilizing a Laserfiche Treasurer’s Check Request (TCR) form. The form is completed by a Utility Services Accounting Technician with supporting documentation for the refund attached and is routed to the Utility Billing Supervisor or Manager for approval. The TCR is then routed to Accounts Payable for a refund check to be issued. For other adjustments to utility accounts, the adjustment information is prepared by a Utility Services Accounting Technician and is submitted to the Utility Billing Supervisor for review and approval and if needed is further routed to the Utility Services Manager and/or Finance Director for approval to proceed with the adjustment. Confidential Funds Council Retreat May 1-2, 2026, Page 44 of 65 City of Moses Lake, Washington Page 11 401 S. Balsam St. · PO Box 1579 · Moses Lake, WA 98837 Office: 509 764-3701 · Fax: 509 764-3739 · www.moseslakewa.gov The City has not established sufficient procedures over confidential funds establishing internal controls required by the Budgeting, Accounting and Reporting Systems (BARS) manual (BARS 3.8.9). We recommend the City establish procedures over confidential funds that address all the requirements in BARS 3.8.9. Corrective Actions: We have implemented the suggested processes to indicate what information we are buying from informants. This information is physically kept by the supervisor, and a report is provided to the Chief of police annually with the information. In 2026, we will also spot audit this physical record. Council Retreat May 1-2, 2026, Page 45 of 65 City of Moses Lake 2027 Budget Process •May 1st and May 2nd - City Council workshops - setting Council priorities and goals for the 2027 budget year. •May 27th – Budget kickoff with Leadership Team – Budget memo with 2027 budget guidelines and Council priorities to be distributed prior to budget kickoff meeting. •June 12th – Budget worksheets by department and budget narratives ready for distribution. Invitations to edit departmental budgets and narratives sent to Director’s and Managers by June 12th. •July 17th – Budget worksheets and narratives due to Finance for budget consolidation. •July 31st – Preliminary revenue estimates, department expenditure budgets and budget narratives provided to City Manager. •August 3rd – September 4th – City Manager and Finance Director meetings with Directors and Managers to review departmental budgets. •September 8th to October 27th – Budget workshops with Council. (Tuesday evenings –schedule to be prepared/communicated in advance for attendance.) •October 27th and November 10th – Tentative dates for public hearings on 2027 budget. •November 24th – Final budget hearing (if necessary) and adoption of 2027 budget. Council Retreat May 1-2, 2026, Page 46 of 65 Budget Calendar for Preparation of 2027 Budgets Major Steps in Budget Preparation State Law Time Limitations Statutory Deadline 2026 Moses Lake's Date Policy setting sessions between City Council, City Manager & Department Heads. Not Applicable Not Applicable May 1st & 2nd 1. Request by Finance Director to all departmentheads and those in charge of municipal offices toprepare detailed estimates of revenues andexpenditures for next fiscal year (calendar year).RCW 35.33.031 and RCW 35A.33.030. By second Monday in September.1 September 14 June 12 2. Estimates are to be filed with the Finance Director. RCW 35.33.031 and RCW 35A.33.030. By fourth Monday in September. September 28 July 17 3.Revenue estimates and department budgets are presented to the City Manager for modifications, revisions or additions. Finance Director must submit to City Manager proposed preliminary budget setting forth the complete financial program, showing expenditures requested by each department and sources of revenue by which each such program is proposed to be financed. RCW 35.33.031 and RCW 35A.33.030. On or before the first business day in the third month prior to beginning of the fiscal year. October 1 July 31 4. City Manager provides the legislative body with current information on estimates of revenues from all sources as adopted in the budget for the current year. City Manager also provides the legislative body with the proposed preliminary budget setting forth the complete financial program, showing expenditures requested by each department and sources of revenue by which each such program is proposed to be financed. RCW 35.33.135 and 35A.33.135 No later than the first Monday in October. October 5 Budget workshops - September 8 – October 27 5. Implicit price deflator calculated by Bureau ofEconomic Analysis for property tax limit.By fourth Wednesday in September. September 23 September 23 6. The legislative body must hold a public hearing on revenue sources for the coming year's budget, including consideration of possible increases inproperty tax revenues. RCW 84.55.120. After thehearing, a city may choose to pass an ordinance atthe same meeting authorizing a property taxincrease in terms of dollars and percent to complywith Referendum 47. Before legislative body votes on property tax levy. Deadlines for levy setting are in item 9 below. See Item 9 Mid-October to mid-November. October 27 or November 10 Council Retreat May 1-2, 2026, Page 47 of 65 7. City Manager prepares preliminary budget andbudget message2 and files with the city legislativebody and City Clerk. RCW 35.33.055 &35A.33.052. At least 60 days before the ensuing fiscal year. November 2 October 27 8. Clerk publishes notice of filing of preliminary budget with Finance Director and publishes notice of public hearing on final budget once a week for two consecutive weeks. RCW 35.33.061 & 35A.33.050. No later than the first two weeks in November. November 1 – November 18 October 13 October 27 9. Setting property tax levies. RCW 84.52.070.November 30 for all cities and towns. November 30 October 27 – 1st or November 10 – 2nd 10. The legislative body, or a committee thereof, must schedule hearings on the budget or parts of the budget and may require the presence of department heads. RCW 35.33.057 & 35A.33.055. Prior to the final hearing. November 1 through 25 (suggested) November 10 or November 24 11. Copies of proposed (preliminary) budget madeavailable to the public. RCW 35.33.055 &35A.33.052. No later than six weeks before January 1. November 20 November 3 12. Final hearing on proposed budget. RCW 35.33.071 & 35A.33.070. On or before first Monday of December, and may be continued from day-to-day but no later than the 25th day prior to next fiscal year (December 7). December 7 November 24 13. Adoption of budget for 2026. RCW 35.33.075 & 35A.33.075. Following the public hearing and prior to beginning of the ensuing fiscal year. Day of public hearing through December 31. November 24 14. Copies of final budget to be transmitted to the State Auditor's Office and to MRSC by the City Clerk. Finance Director transmits final budget to Grant County Commissioners. After adoption After adoption 1 RCW 35.33.031 actually provides "on or before the second Monday of the fourth month," etc. Therefore, pursuant to the state budget law, that step (and certain others) could be taken before the dates listed here. See also, RCW 35A.33.030. 2 RCW 35.33.057 and RCW 35A.33.055 specify that the budget message must contain the following: An explanation of the budget document; An outline of the recommended financial policies and programs of the city for the ensuing fiscal year; A statement of the relation of the recommended appropriation to such policies and programs; A statement of the reason for salient changes from the previous year in appropriation and revenue items; An explanation for any recommend major changes in financial policy 3If a due date falls on a Saturday, Sunday or Holiday, that due date becomes the next business day. RCW 1.12.070. Council Retreat May 1-2, 2026, Page 48 of 65 Council Retreat May 1-2, 2026, Page 49 of 65 Council Retreat May 1-2, 2026, Page 50 of 65 Council Retreat May 1-2, 2026, Page 51 of 65 Council Retreat May 1-2, 2026, Page 52 of 65 Date: April 28, 2026 To: Moses Lake City Council From: Rob Karlinsey, City Manager Regarding: Strategic Opportunities Fund- Downtown Revitalization Update The purpose of this memorandum is to provide City Council with a formal update on the Strategic Opportunities Fund allocations adopted in the 2026 budget and to outline how the refined project scopes align with and advance Council Priority #3, Improve the City’s Image and Reputation. Since the initial budget was approved at $85,000, staff have completed competitive selection processes and refined scopes of work that more accurately reflect the level of professional services and deliverables required to support comprehensive downtown revitalization. One time project, with One-time Dollars This project is funded through the Strategic Opportunities Fund, which was established through the 2026 budget process using one-time revenues generated through the sale of two City owned properties. The fund is intended to support one-time investments that can position the City to act upon strategic opportunities. Project Outcomes •Civic Center Campus/ParkReimagine •Fourth Avenue Conceptuals (Alder to Balsam) •Sinkiuse Square redesign andSplash Pad incorporation •Downtown Streetscape refresh (Third Avenue & Broadway through Alder Street and DogwoodStreet) •Development of City design color palette •Designs for monument & wayfinding signage •Design for Blue Heron Park Overpass gateway sign Oregon Overpass Sign- Interstate 84 City of Soap Lake Wayfinding Sign Council Retreat May 1-2, 2026, Page 53 of 65 Through a competitive Request for Qualification (RFQ) process, staff secured consulting services to develop design concepts for Civic Center Park, the broader Civic Center Campus, the Fourth Avenue between Alder and Balsam, Third Avenue/Broadway streetscapes, and the redesign of Sinkiuse Square. During the development of the scope, it became clear that a more integrated and comprehensive approach would better serve the City’s ambitions for revitalization, resulting in an expanded scope of work that will produce cohesive, high-quality design materials capable of guiding future capital planning and public investment. Complementing this design effort, staff pursued an RFQ to develop a unified system of gateway and wayfinding signage, monument and overpass design concepts, and an official city color palette intended to establish a cohesive visual identity throughout the downtown and broader community. Through the process, the consultant provided multiple tiers of service options, with the Enhanced approach selected as the preferred path forward due to its balance of comprehensive design development and long-term implementation value, including refined conceptual guidelines, detailed sign standards, site-specific scaled renderings, typography and color palette development, signage hierarchy concepts, and integration of local artistic influence to create a recognizable and scalable identity system for Moses Lake. This component of the work is essential to establishing a consistent visual identity throughout the downtown and across the broader community. A clear, recognizable brand is key to enhancing the City’s image, promoting a stronger sense of place, and supporting the economic vitality of the area by making the City more inviting and easier to navigate. Together, these elements form a comprehensive package of work that moves well beyond isolated improvements, instead creating a cohesive vision for downtown Moses Lake. The combination of professional design, branding, strategic planning, and placemaking supports a long-term revitalization strategy that directly aligns with Council’s priority to improve the City’s image and reputation. By investing in high-quality planning and identity-building efforts now, the City positions itself to attract economic investment, strengthen community pride, and ensure that future capital projects are coordinated, purposeful, and reflective of a unified downtown identity. Budget A budget summary table is found below to illustrate the comparison between the originally adopted budget and the updated project costs based on the refined scopes of work. Council Retreat May 1-2, 2026, Page 54 of 65 Strategic Opportunities Fund Updated 2026 Beg. Fund Balance $ 346,787 Beg. Fund Balance $ 346,787 Downtown Design $ 35,000 Downtown Refresh (including Civic Campus, 4th Ave, 3rd/Broadway Streetscape, Sinkiuse Square) $ 120,000 Sinkiuse Square $ 50,000 Signage & Color Palette Design $ 65,000 Total $ 85,000 Total $ 185,000 End Fund Balance $ 261,787 End Fund Balance $ 161,787 The updated allocations outlined above reflect the refined scopes necessary to effectively support the City's long‑term downtown revitalization strategy. To provide Council with full context and transparency, the following attachments include: •The finalized scope of work for the downtown redesign project, and •The scope of work for the gateway and wayfinding signage and city color palette initiative These materials are included to assist Council in understanding the depth of expertise involved and the comprehensive approach being taken to enhance the image, identity, and economic vitality of the downtown corridor. Council Retreat May 1-2, 2026, Page 55 of 65 1northwest studio architects urban designers SCOPE OF WORK / COMPENSATION SCHEDULE Schedule: Assume approximately 5mo to 6mo Project Duration Deliverables: •“Conceptual design alternatives for each identified area,” meaning up to one (1) Illustrative Site Plan option for 2A, 2B, and 2C, and up to three (3) Illustrative Plan options for 2D, for a total of up to six (6) plans. •“Renderings and illustrative graphics,” meaning up to one (1) 3-D in-house rendering of each area identified in 2A, 2B, and 2C, and up to three (3) renderings for 2D, for up to six (6) renderings in total. •“Draft and final design framework and implementation guidance,” meaning four (4) "one-pagers," with above materials and "Action Item" bullet points supporting implementation of concept(s) for 2A, 2B, 2C, and 2D. Relevant supporting process materials are included. •“Presentation materials suitable for public and City use,” meaning above materials (draft and final), including materials and presentations for public meeting(s), in electronic format. Partner Arch. / UD Staff 1 Staff 2 Staff 3 PM NWS BERGER 285$ 215$ Hours Cost 260$ 220$ 210$ 180$ Hours Cost (Hourly)LUMP SUM 1 Project Initiation and Coordination One Day (allocate 2 weeks for scheduling) A Perform site visits for Sinkiuse Square; downtown corridors (blocks of Third Avenue and Broadway Avenue between Dogwood Street and Alder Street; Fourth Avenue between Balsam Street and Alder Street; and Civic Center Park and Campus One Day, including preparation L S 8 8 16 4,000$ 6 - - 6 12 2,640$ B Conduct an in-person project kickoff meeting with City staff and key stakeholders One Day, included with above L S - - - -$ 2 - - 2 4 880$ C Review existing plans, studies, and City priorities relevant to downtown revitalization One Day L S 8 8 16 4,000$ - - - 4 4 720$ 16 16 32 8,000$ 8 - - 12 20 4,240$ 12,240$ 12,000$ 2 Conceptual Design Development 1.5 - 2 Months A Sinkiuse Square activation, including potential splash pad integration S L 2 4 6 1,430$ 2 - 10 - 12 2,620$ B Downtown core streetscape improvements for the blocks of Third Avenue and Broadway Avenue between Dogwood Street and Alder Street S L 2 4 6 1,430$ 4 - 10 - 14 3,140$ C Fourth Avenue architectural and streetscape renderings for the lots on both sides of Fourth Avenue between Balsam Street and Alder Street, including the roundabout at the intersection of Balsam Street and Fourth Avenue L S 8 32 40 9,160$ - - - - - -$ D Civic Center Park and Civic Center Campus, Library, and adjacent City-owned properties. Include up to three (3) options in total that include both public and/or private (residential/commercial) use of the Civic Park L S 8 40 48 10,880$ 4 - 12 - 16 3,560$ 20 80 100 22,900$ 10 - 32 - 42 9,320$ 32,220$ 32,500$ 3 Renderings and Visualizations 2 - 2.5 Months 3 A Conceptual site plans, both 2-D and 3-D from different viewpoints.Up to Six (6) Illustrative Plans in total, inclusive of up to one (1) for each of 2A-2C and up to three (3) for 2D.L S - 12,000$ 2 - 12 12 26 5,200$ B Perspective renderings and illustrative graphics Up to Six (6) 3D Views in total, inclusive of up to one (1) for each of 2A-2C and up to three (3) for 2D L S - 12,000$ 4 - - 12 16 3,200$ C 2-D and 3-D Conceptual elevation drawings, where appropriate Process graphics, if developed to complete above 3A and 3B S L -$ 1 - 6 8 15 2,960$ 24,000$ 7 - 18 32 57 11,360$ 35,360$ 35,000$ 4 Design Framework and Implementation Guidance A Design intent and guiding principles L S 4 16 20 4,580$ 8 - 8 - 16 3,760$ B Phasing considerations and priority improvements L S 2 8 10 2,290$ 1 - 2 - 3 680$ C Order-of-magnitude cost considerations, where feasible Focus on 4th Avenue and Civic Center Park L S 4 2 6 1,570$ 1 - 6 - 7 1,520$ 10 26 36 8,440$ 10 - 16 - 26 5,960$ 14,400$ 14,500$ 5 Community and Public Engagement Support (NIC) A Communicate with the Downtown Moses Lake Association and downtown businesses, and participate in stakeholder meetings, community workshops, and public presentations as requested by the City Up to one (1) workshop, on site, in-person, incl. prep. City to lead event coordination and logistics (space and material rentals, communications, invites or mailers, etc.). Consultant team presents Project materials, facilitates workshop agenda, and/or attends. L S 8 20 28 6,580$ 6 - 6 - 12 2,820$ B Present concepts to City leadership, boards, and/or City Council One (1) presentation L S 4 8 12 2,860$ 3 - - - 3 780$ 12 28 40 9,440$ 9 - 6 - 15 3,600$ 13,040$ 13,000$ 6 Project Management and Meetings Concurrent with above A Meetings (attendance as needed only)Up to three (3) Progress/Coord. Mtgs L S 3 6 9 2,145$ 10 - 10 - 20 4,700$ B Administration Est.L S 4 8 12 2,860$ - - - - - -$ 7 14 21 5,005$ 10 - 10 - 20 4,700$ 9,705$ 10,000$ 7 Reimbursable Expenses A RT mileage, plotting, materials, etc., allowance to complete above scope Wherever possible, deliverables are digital. Overnight stays (hotel, etc.) not included.1,700$ 900$ 1,700$ 900$ 2,600$ 3,000$ Partner Arch. / UD Staff 1 Staff 2 Staff 3 PM 285$ 215$ Hours Cost 260$ 220$ 210$ 180$ Hours Cost (Hourly)LUMP SUM 65 164 54 - 82 44 18,525$ 35,260$ 14,040$ -$ 17,220$ 7,920$ TOTAL TOTAL TOTAL 120,000$ LEAD (L) / SUPPORT (S) 229 79,485$ NWS (Prime: Arch. / UD / P) Hours TOTAL Hours 180 119,565$ TOTAL BERGER (LA) TOTAL Hours BERGER (LA) 40,080$ TOTAL Conceptual design studies and sketches / preliminary feasiblity for each focus area. Assumptions NWS (Prime: Arch. / UD / P) "One Pagers" with bullet point "Action Items" and/or narratives that support implementation for up to four (4) Task 2 Concepts. Hours TOTAL EXHIBIT B: COMPENSATION SCHEDULE APRIL 8, 2026 Council Retreat May 1-2, 2026, Page 56 of 65 Date: April 23, 2026 City of Moses Lake, Washington Re: RFQ - Signage Design Subject: Rough Order of Magnitude Response for Sign Design Scope of Work Dear Stakeholders, Executive Statement Our partnership with the City of Moses Lake is built on a foundation of trust, versatility, and shared success. Over the years, we have been proud to support nearly every city division, including Parks & Recreation, the Museum, Fleet & Maintenance, Fire, Police, the Surf ’n Slide, and complex infrastructure projects such as the fountain rebuild. We view ourselves as a dedicated extension of your team and are always ready to support the city, even when timelines are tight. For us, this signage initiative is much more than a contract - it is a passion project. Because we live, work, and raise our families here, Moses Lake is not just our place of business; it is our home. We are eager to deepen our ties with this community and apply our local knowledge to ensure this project reflects the unique spirit of the city we proudly serve. As a full‑service design, fabrication, and installation firm, Signs Now Moses Lake is well‑positioned as a key contributor as outlined in the RFQ. Our response includes three options, as detailed below. Wally Farris Owner Signs Now, Moses Lake Council Retreat May 1-2, 2026, Page 57 of 65 Scope of Work Assist the city with the development of a cohesive signage identity program, including: • Development of a coordinated color palette and design theme for City signage • Conceptual design of up to five (5) monument signs • Conceptual design of one (1) large overpass or gateway sign • Development of scalable design standards that could later be used for wayfinding signage and other municipal signage applications. Foundational execution of SOW. Research, discovery and collaboration with City stakeholders to accomplish the (4) goals stipulated in the RFQ. Our design team will execute color palette, signage design, and sign standards from a conceptual perspective. Cost: $25,000 - $30,000 Deliverables: Conceptual guidelines, signage renderings, color and signage standards It is a privilege to present this proposal to the city of Moses Lake. We are eager to leverage our local knowledge and our status as a full - service design, fabrication, and installation firm to ensure this project reflects the unique spirit of the city we are proud to serve. Our Approach: Three Paths to Success We understand the city is currently focused on the design phase. To support this, we have outlined three tiers of service to help you achieve your goals - ranging from core design execution to a full-scale master planning approach. Council Retreat May 1-2, 2026, Page 58 of 65 Strategic execution of SOW. Research, discovery, scaled signage renders, detailed specs including material recommendations. Site specific observations and recommendations including field audit photos, measurements and renderings. Typographic design includes industry research and statistical recommendations. Integration of Sign Agent platform and wayfinding solutions. Documentation and early development of wayfinding strategy. Applications for integration of local artesian influence. Recommendations on sign materials, installation standards, implementation strategies. Defined color guidelines and use guidelines Cost: $75,000 - $85,000 Deliverables: Defined conceptual guidelines, defined color guidelines and usage. Typography study and typographic design. Field rendering. Signage design guidelines with drawings, build specs, hierarchy, installation variations, material recommendations and usage, onset wayfinding documentation implementation of Sign Agent platform. Development of signage masterplan. Note: Details to be refined on commencement of partnership and clarification of expectations. Enhanced execution of SOW. Research, discovery, design development including detailed drawings, color palette usage guide, integration of local artesian influence, scaled conceptual applications, field audits, typographic design, signage hierarchy concepts. Cost: $60,000 - $65,000 Deliverables: Refined conceptual guidelines, site specific scaled signage renders, detailed conceptual sign standards, defined color guidelines, artesian interpretations, materials and finishes concepts, and an Introduction to Sign Agent platform. Council Retreat May 1-2, 2026, Page 59 of 65 Council Retreat May 1-2, 2026, Page 60 of 65 CPN PROJECT NAME PROJECT MGR TOTAL PROJECT BUDGET CURRENT PHASE NEXT MILESTONE MILESTONE DATE SCHEDULE ON TRACK? LAST UPDATED 22-085 W2- Well 34 Pumphouse Design and Construction Richard Law 4,448,000$ PE Secure Wtr Rights 2028 Yes 4/24/2026 23-154 W3- Well 29 Treatment Filtration System Richard Law 3,693,700$ PE EPA Contract July Yes 4/24/2026 25-252 W5- Alder St Bridge Water Main Replacement Neil Mickelson 275,000$ CN Complete Construction August Yes 4/24/2026 22-069 W6- New Reservoir 10 Construction Richard Law 7,935,000$ PE Secure Funding 2028 Yes 4/24/2026 26-285 W12- Reservoir 8 Interior Recoating Neil Mickelson 450,000$ PE Bid Package Completion June Yes 4/24/2026 26-291 W13- Division St Pressure Reducing Valve Relocation Neil Mickelson 180,000$ PE Finalize Design August Yes 4/26/2026 26-292 W14- Montlake Pressure Reducing Valve Relocation Neil Mickelson 780,000$ PE Finalize Design August Yes 4/24/2026 23-095 WW3- Redundant Forcemain Lake Crossing Neil Mickelson 2,342,200$ PE Ecology Approval June No<30days 4/24/2026 25-247 WW4- COF Water Main Lateral Replacement/Relocation Neil Mickelson 247,000$ PE Bid Package Completion May Yes 4/24/2026 23-176 WW5- COF Raw Waste Pump & Internal Controls Upgrades Neil Mickelson 5,765,000$ PE Bid Package Completion October Yes 4/24/2026 T1- Pavement Preservation Program Jeff Holm 100,000$ Concept Update Street Saver June Yes 4/27/2026 22-081 T2- SR 17/Yonezawa Blvd Intersection Improvements Levi Bisnett 7,828,086$ PE WSDOT ROW Approval May Yes 4/23/2026 22-088 T3- Westshore Activity Trail Extension Neil Mickelson 56,415$ PE Bid Package Completion June Yes 4/24/2026 23-113 T4- Nelson Road Corridor Pedestrian Improvements Levi Bisnett 3,216,937$ PE Community Engagement May Yes 4/23/2026 23-161 T5- Hamilton Road Commercial Roadway Improvements Jeff Holm 2,205,900$ PE Out to Bid May No<30days 4/24/2026 23-181 T6- Sage Rd - Shoreline Stabilization Levi Bisnett 151,000$ PE JARPA July Yes 4/23/2026 23-114 T7- Patton to Grape - Shared Use Path Levi Bisnett 2,000,000$ PE 30% Design June Yes 4/23/2026 25-241 T8- Gravel Road Paving Program - Bemis St and Sybel St, Milwaukee Jeff Holm 2,018,000$ PE Out to Bid April No>30days 4/24/2026 25-243 T9- Stratford Road ADA Ramp Repair and Replacement Jeff Holm 250,000$ CN Substantial Completion May Yes 4/24/2026 25-249 T10- Valley and Paxson Intersection Improvement Levi Bisnett 157,250$ Concept PE June Yes 4/23/2026 23-115 T12- SR 17/Stratford Interchange Development and Design Only Stuff Levi Bisnett 685,000$ Concept Council Direction June Yes 4/23/2026 26-286 T13- Gravel Road Paving Program - Lee St & Marlo Ave Jeff Holm 922,000$ Concept Survey Completion April Yes 4/24/2026 26-287 T16- Rectangular Rapid Flashing Beacon Installation at Pedestrian Crossings Jeff Holm 580,000$ Concept Survey Complete May No<30days 4/24/2026 26-293 T17- New Lake Crossing Bridge Richard Law/ Leigh Ramsey 92,000,000$ Concept WSDOT Meeting May Yes 4/23/2026 26-288 T19- Pioneer Way Resurfacing Project Jeff Holm/ Levi Bisnett 3,791,000$ Concept WSDOT Funding Auth June Yes 4/23/2026 26-294 T20- Hansen Interchange Richard Law 60,000,000$ Concept WSDOT Meeting May Yes 4/23/2026 26-295 T21- Broadway Safety & Beautification Improvements Richard Law 25,000,000$ Concept WSDOT Coordination May Yes 4/24/2026 26-289 T22- Division St Enchancements Levi Bisnett 200,000$ Concept Community Engagement September Yes 4/23/2026 F29- Central Operations Facility Foundation Repair Josh McPherson 52,500$ PE RFQ Award April Yes 4/23/2026 Today's Date 4/27/2026 CITY OF MOSES LAKE 2026 Active Capital Projects - Engineering Council Retreat May 1-2, 2026, Page 61 of 65 2026 Council Retreat Focused Project Updates Project: T19 - Pioneer Way Resurfacing Project Manager JeƯ Holm / Levi Bisnett Current Phase Conceptual Next Milestone WSDOT Funding Authorization Milestone Date June 2026 Project Update: This project cannot move forward until the awarded federal grant from the National Highway System Asset Management Program has a contract executed. Washington State Department of Transportation is the pass-through agency for fund administration. During our April 2026 meeting with our regional WSDOT partners we were told it could be another 1-2 months before that contract can be executed. StaƯ are unable to do much in the way of design since any work completed prior to the contract execution doesn’t count towards our matching fund requirement. Project: T2 – SR17/Yonezawa Blvd Intersection Improvements (Roundabout) Project Manager Levi Bisnett Current Phase Preliminary Engineering Next Milestone WSDOT ROW Approval Milestone Date May 2026 Project Update: Roadway design plans have reached 100% complete and have been submitted to WSDOT for review and approval. Plans are also being circulated in-house. We are waiting on a legal agreement for possible sewer line extension to adjoining property owner/developer. WSDOT right-of-way (ROW) approval is required before the ROW phase can be completed (approval is anticipated on April 30th per WSDOT team). Project: T4 – Nelson Road Corridor Pedestrian Improvements Project Manager Levi Bisnett Current Phase Preliminary Engineering / Survey Next Milestone Community Engagement Milestone Date May 2026 Project Update: Community engagement is scheduled to occur in May 2026. Levi is working with school partners in the areas that will be aƯected with construction on design elements. He plans to have a community open house to discuss the project, allowing the community to help inform design elements. Levi will then bring proposed design options to City Council for review and feedback prior to any substantial design will occur. After design determinations are made, Levi will also deploy demonstration projects to help the community at large get a feel for the design elements that will be implemented. This project must get out to bid prior to year end to ensure we can utilize the Safe Routes to School grant to complete. Council Retreat May 1-2, 2026, Page 62 of 65 Project: T7 – Patton to Grape – Shared Use Path Project Manager Levi Bisnett Current Phase Preliminary Engineering Next Milestone 30% Design Milestone Date June 2026 Project Update: Levi has begun community engagement eƯorts, starting with knocking on doors to discuss the project with the local neighborhood. Next steps are a neighborhood meeting to share the project plan and gain feedback from the residents about design elements and/or concerns surrounding the project. Concurrently, initial survey work and preliminary engineering continue focused on items needed for project implementation: right-of-way, easements, high level conceptual design. Project: WW3 – Redundant & Replacement of Force Main Lake Crossing Project Manager Neil Mickelson Current Phase Preliminary Engineering Next Milestone Shoreline Amendment & Ecology Approval Milestone Date June 2026 Project Update: Plan set has already had initial review by Department of Ecology with minor edits needed. StaƯ are waiting anxiously for our contract from WA Department of Commerce for our $924,000 direct appropriation grant while simultaneously waiting on the Shoreline Master Plan Amendment to finish up it’s required hearing process. Once the Shoreline Master Plan has been approved, staƯ will work with Ecology to get the permitting process started as that may take additional time. StaƯ are evaluating whether a Public Works Board traditional Construction Funding Program application for FY2027 will work with the timing of this project or if other grants or loans will be timelier. There are other project options that could benefit from the PWB programs and meet necessary timing constraints. Project: T17 – New Lake Crossing Bridge Project Manager Richard Law / Leigh Ramsey Current Phase Conceptual Next Milestone WSDOT Meeting Milestone Date May 2026 Project Update: Leigh and Mayor Swartz went to Washington DC in March 2026 to advocate for congressional directed spending. While we have heard that Congressman Newhouse did not include our ask in his package, we have not heard back from Senators Cantwell or Murray yet. Leigh and Richard have a meeting set with Riley, Regional WSDOT Planning Manager, in early May to discuss several projects and how WSDOT can partner with the City. During this meeting we will be discussing our proposed high level feasibility review (in Council Retreat May 1-2, 2026, Page 63 of 65 conjunction with our Comprehensive Plan work), locations, and our plans for an EIS. Riley indicated there may be a way for WSDOT to partner with us in support of some of these eƯorts with planning dollars. We will report back to council after this meeting occurs. Vivian Ramsey, Planning Manager, is working with Nexus Planning on an amendment to the Comprehensive Plan update contract to allow Fehr & Peers and Consor to complete some high level, regional analysis of the proposed three bridge locations. Community Development will bring that amendment forward as soon as it is ready. Project: T20 – Hansen Interchange Project Manager Richard Law Current Phase Conceptual Next Milestone WSDOT Meeting Milestone Date May 2026 Project Update: With WSDOT replacing the Hansen Road overpass, the project scope is shifting focus to addressing the intersection just north of the overpass (where N. Frontage, Westlake Rd, the I-90 oƯ and on ramps, and Hansen Road converge). This intersection will also be a topic of discussion with Riley, Regional WSDOT Planning Manager, during the early May meeting. WSDOT has proposed a stop sign on Hansen Road and believes that will be least costly and eƯective. City staƯ believe there may be other options that will increase the safety of our residents and would like to explore those. The area involved includes both City and state-owned right-of-way and will require partnership on a solution. More updates will be provided after the May meeting. Project: W2 – Well 34 Pumphouse Design and Construction Project Manager Richard Law Current Phase Preliminary Engineering Next Milestone Secure Water Rights Milestone Date 2028 Project Update: City staƯ met with Department of Ecology and US Bureau of Reclamation to discuss legal pathways to secure shallow groundwater rights. They have since been evaluating that pathway. StaƯ have a meeting scheduled with Department of Ecology on 4/28 to discuss updates. This is part of our broader strategy to diversify the City’s water portfolio for a sustainable water future. StaƯ are still actively working with Aspect Consulting to seek out shallow groundwater rights for sale. When rights have been located, staƯ will bring to City Council for discussion. Once rights are secured, staƯ will move forward with design and permitting of the Well 34 manganese treatment, conveyance infrastructure, and pumphouse. Council Retreat May 1-2, 2026, Page 64 of 65 Project: W3 – Well 29 Treatment Filtration System Project Manager Richard Law Current Phase Preliminary Engineering Next Milestone EPA Contract Milestone Date July 2028 Project Update: City has secured direct appropriation funds from both the state and federal legislature. The state contract has been executed, but we are waiting on the execution of the federal contract before we can move forward with the bid process for design of the water treatment system, or a design/build contract for both design and construction. We have been told we should expect to hear from the EPA to begin the contracting process by July 2026 – but we are proactively reaching out to check on status. The staƯ are ready to take the next steps once that contract has been signed. Project: W6 – New Reservoir 10 Construction Project Manager Richard Law Current Phase Re-design Next Milestone Secure Funding Milestone Date 2028 Project Update: Our consultant is completing the final re-design with the slightly smaller tank as directed by Council in late 2025. Plans are currently at 90% design. We have been approached by an adjacent property owner asking us to relocate part of the infrastructure needed for the reservoir to accommodate a new driving range. StaƯ have reached out to the consultant to determine estimated costs and project delays if an additional redesign is requested. If moving forward with redesign, the developer/adjoining property owner will be required to pay for any staƯ time and consultant costs associated with a developer requested relocation/redesign (including additional permitting, easements, etc.). The current plan is to fund this project with bond proceeds for bonds that will be issued in 2027. However, staƯ will continue to look for additional funding sources – whether grants, loan programs, or bonding – and will bring any pertinent options to Council for consideration. Council Retreat May 1-2, 2026, Page 65 of 65 • • • • • • • • • • • • • • • • • ERUS Allocated as of 3/20/2026 Project Number/Name Type of Allocation Pressure Zone ERUs UGA Notes/Details GD2025-1539 Sand Hill Place Ph 3 Com/Ind/Sub Central 42 No 42 LOTS 3/4" Meter GD2025-1547 US Market Com/Ind/Sub Central 5 No 1" Dom 1" Irr. GD2025-1552 Maple Ridge PH 1 Com/Ind/Sub Larson 50 No 50 LOTS 3/4" Meter GD2025-1555 Moberg Yonezawa Com/Ind/Sub Lakeview 8 No 2" Meter *GD2025-1593 Westlake Commercial Com/Ind/Sub Central 5 No 2x1" and 1unspecified* GD2025-1668 Meat Market Com/Ind/Sub Central 2.5 No 1" Meter GD2025-1670 Jenesis MP Com/Ind/Sub Central 17 No 17 LOTS 3/4" Meter GD2025-1697 Interlake East Lot Com/Ind/Sub Central 11 No 18 Units rounded up from 10.8 GD2025-1708 Homes 2 Suites Com/Ind/Sub Lakeview 88 No 146 Rooms rounded up from 87.6 GD2025-1712 Ritzville Trading Co. Com/Ind/Sub Central 2.5 No 1" Meter GD2025-1759 Central Dr Apartments Com/Ind/Sub Knolls Vista 48 No 6x 4-plex assume 2" meter GD2025-1773 Samaritan Shop BLDG Com/Ind/Sub Lakeview 8 No 2" Meter GD2025-1806 Maple Ridge PH 2 Com/Ind/Sub Larson 42 No 42 LOTS 3/4" Meter GD2025-1848 Dolce Hanger Com/Ind/Sub Larson 13 No 2" and 1.5" Meter GD2025-1849 O'Reily Auto Parts Com/Ind/Sub Central 2.5 No 1" Meter GD2025-1865 Port of ML SW Hanger Project Com/Ind/Sub Larson 115 No 8" Meter in Existing vault GD2025-1899 JM Pacific Shop/Office Com/Ind/Sub Lakeview 2.5 No 1" Meter GD2025-1930 Fancher Civil Com/Ind/Sub Lakeview 0 No No New Meter at this time GD2025-1964 GCAO Com/Ind/Sub Wheeler 1 No 3/4" Meter GD2025-2057 GF4A WBC Lot Consolodation Com/Ind/Sub Wheeler 2.5 No 1" Meter serving 4 BLDGs GD2025-2062 Verizon Store Com/Ind/Sub Knolls Vista 2.5 No 1" Meter GD2025-2066 Warhouse With Office Com/Ind/Sub Wheeler 2.5 No 1" Meter GD2026-2141 Sand Hill Place PH 2 Com/Ind/Sub Central 34 No 34 LOTS 3/4" Meter GD2026-2184 Maple Ridge Div. 2 Com/Ind/Sub Larson 68 No 68 LOTS 3/4" Meter **GD2026-2185 Paradise Pointe Com/Ind/Sub Moses Pointe 612 Yes 612 LOTS Total Buildout 3/4" Meter GD2026-2193 Sunbelt Rentals Com/Ind/Sub Lakeview 0 No No new meter GC2024-212 Luta & Virginia Single Meter/Setter Knolls Vista 1 No 3/4" Meter GD2025-1525 6427 Rd 2.05 NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-1533 921 Ted Yao Way Duplex Single Meter/Setter Knolls Vista 2.5 No 1" Meter GD2025-1537 6435 Rd 2.05 NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-1561 123 E 9th LOT 64 Single Meter/Setter Central 1 No 3/4" Meter GD2025-1562 123 E 9th LOT 65 Single Meter/Setter Central 1 No 3/4" Meter GD2025-1563 123 E 9th LOT 66 Single Meter/Setter Central 1 No 3/4" Meter GD2025-1564 123 E 9th LOT 67 Single Meter/Setter Central 1 No 3/4" Meter GD2025-1575 3025 Westshore Dr NE Single Meter/Setter Moses Pointe 2.5 Yes 1" Meter GD2025-1603 6442 Rd 2.15 NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-1609 3439 Blue Herron LN Single Meter/Setter Central 1 No 3/4" Meter GD2025-1613 2003 W Basin St Duplex Single Meter/Setter Central 2.5 No 1" Meter GD2025-1616 1917 W Basin St Duplex Single Meter/Setter Central 2.5 No 1" Meter GD2025-1641 501 Sand Dunes Rd Single Meter/Setter Central 1 No 3/4" Meter GD2025-1647 6428 Rd 2.05 NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-1650 6425Rd 2.15 NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-1689 3511 W Lakeshore Dr Single Meter/Setter Central 1 No 3/4" Meter GD2025-1690 619 Peterson Pl Single Meter/Setter Central 1 No 3/4" Meter GD2025-1691 3515 W Lakeshore Dr Single Meter/Setter Central 1 No 3/4" Meter GD2025-1693 530 Fairchild Lp Single Meter/Setter Larson 1 Yes 3/4" Meter GD2025-1696 6369 Farrer Way NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-1699 930 Ted Yao Way Single Meter/Setter Knolls Vista 2.5 No 1" Meter GD2025-1702 1201 W Malaga St Single Meter/Setter Knolls Vista 1 No 3/4" Meter GD2025-1734 3446 W Blue Herron Ln Single Meter/Setter Central 1 No 3/4" Meter GD2025-1757 1923 Basin St Single Meter/Setter Central 2.5 No 1" Meter GD2025-1758 1927 W Basin St Single Meter/Setter Central 2.5 No 1" Meter GD2025-1805 8673 Charles Rd Single Meter/Setter Larson 1 No 3/4" Meter GD2025-1879 115 Gibby Rd Single Meter/Setter Central 1 No 3/4" Meter GD2025-1916 3423 W Blue Herron Ln Single Meter/Setter Central 1 No 3/4" Meter GD2025-1932 123 E 9th LOT 60 Single Meter/Setter Central 1 No 3/4" Meter GD2025-1948 221 Burke Dr Single Meter/Setter Montlake 1 No 3/4" Meter GD2025-1984 215 Burke Dr Single Meter/Setter Montlake 1 No 3/4" Meter GD2025-2006 4351 William Ave Single Meter/Setter Central 1 No 3/4" Meter GD2025-2027 178 Crestview Dr Single Meter/Setter Knolls Vista 1 No 3/4" Meter GD2025-2028 123 E 9th LOT 63 Single Meter/Setter Central 1 No 3/4" Meter GD2025-2029 123 E 9th LOT 62 Single Meter/Setter Central 1 No 3/4" Meter GD2025-2037 6443 Rd 2.05 NE Single Meter/Setter Moses Pointe 1 Yes 3/4" Meter GD2025-2111 554 Sparrow Ln Single Meter/Setter Central 1 No 3/4" Meter GD2026-2194 123 E 9th LOT 59 Single Meter/Setter Central 1 No 3/4" Meter GD2026-2195 541 N Osprey Ln Single Meter/Setter Central 1 No 3/4" Meter GD2026-2197 1063 W Lakeside Dr Single Meter/Setter Central 2.5 No 1" Meter GD2025-2096 6420 Rd 2.05 NE Single Meter/Setter Moses Pointe 2.5 Yes 1" Meter TOTAL ERUS 1,240 Sum of ERUs Column Labels Within UGA? Row Labels Single Meter/Setter Com/Ind/Sub Grand Total Row Labels Sum of ERUs Central 32 122 153 No 615 Knolls Vista 8 51 59 Yes 625 Lakeview 107 107 Grand Total 1240 Larson 2 288 290 Montlake 2 2 Moses Pointe 12 612 624 Wheeler 6 6 Grand Total 56 1,185 1,240 *When meter size for car wash is indicated, it will need to be added to the total. **ERUs account for all project phases. Rev. 4.24.2026 / JG 1 of 2 ERUS Allocated as of 3/20/2026 153 58.5 106.5290 2 624 6 0 100 200 300 400 500 600 700 Larson/Knolls Vista Wheeler/Lakeview/Montlake/Central Moses Pointe ERUs Allocated By Zone since 1/1/2025 Wheeler Moses Pointe Montlake Larson Lakeview Knolls Vista Central Rev. 4.24.2026 / JG 2 of 2 City of Moses Lake April 2026 Water System Capacity Analysis of Remaining Available ERUs Effective Date: 4/23/2026 Pressure Zone(s)20 hrs/day 22 hrs/day 24 hrs/day Moses Pointe 0 0 0 System Total 0 0 1,495 562 gpd/ERU Basis: Consistent with Water System Plan Remaining ERUs based on: 2021 Maximum Day Demand Plus Actual Connections Added Pumping Rate Adjusted for Operating Hours During the Maximum Day Demand Larson and Knolls Vista Operating Area1 0 0 0 Wheeler, Lakeview, Montlake, and Central Operating Area1 0 0 1,495 (e) The City will treat future single family residential homes with separately provided irrigation water as 0.36 ERUs, representing 200 gpd/ERU. (1) The ERUs available to pressure zones within an operating area represent the combined capacity shared among those zones, not the ERUs available to each zone individually. General Notes Applicable to Entire Table - Surplus or (Deficient) source capacity (ERUs) are based on: (a) Approximately 562 gpd/ERU and a 2.37 MDD/ADD Peaking Factor (b) Typical residential growth and a planning level fire flow requirement less than or equal to 2,500 gpm for 2 hours (c) Flow between zones with or without consideration for booster pump station capacity. (d) The total ERUs added cannot exceed the System Total. 4/27/2026 4:16 PM 1 of 2 CityCouncilReports City of Moses Lake April 2026 Water System Capacity Analysis of Remaining Available ERUs Pressure Zone(s)20 hrs/day 22 hrs/day 24 hrs/day Montlake 250 1,960 3,019 Central 0 0 1,120 Moses Pointe 250 1,827 1,892 System Total 250 1,960 3,659 562 gpd/ERU Basis: Consistent with Water System Plan Remaining ERUs based on: 2021 Maximum Day Demand Plus Actual Connections Added and Future Capacity Improvements (Well 29, Well 34, and Reservoir 10) Pumping Rate Adjusted for Operating Hours During the Maximum Day Demand Wheeler and Lakeview Operating Area1 250 1,960 2,987 Larson and Knolls Vista Operating Area1 0 112 610 (1) The ERUs available to pressure zones within an operating area represent the combined capacity shared among those zones, not the ERUs available to each zone individually. (c) Flow between zones with or without consideration for booster pump station capacity. (d) The total ERUs added cannot exceed the System Total. (e) The City will treat future single family residential homes with separately provided irrigation water as 0.36 ERUs, representing 200 gpd/ERU. General Notes Applicable to Entire Table - Surplus or (Deficient) source capacity (ERUs) are based on: (a) Approximately 562 gpd/ERU and a 2.37 MDD/ADD Peaking Factor (b) Typical residential growth and a planning level fire flow requirement less than or equal to 2,500 gpm for 2 hours 4/27/2026 4:16 PM 2 of 2 CityCouncilReports City of Moses Lake April 2026 Water System Capacity Analysis of Remaining Available ERUs Effective Date: 4/23/2026 Pressure Zone(s)20 hrs/day 22 hrs/day 24 hrs/day Moses Pointe 0 0 52 System Total 0 177 1,813 521 gpd/ERU Basis: Consistent with 2024 Water Facilities Inventory Connections and 2024 Annual Supply Volume Remaining ERUs based on: 2021 Maximum Day Demand Plus Actual Connections Added Pumping Rate Adjusted for Operating Hours During the Maximum Day Demand Larson and Knolls Vista Operating Area1 0 0 0 Wheeler, Lakeview, Montlake, and Central Operating Area1 0 177 1,761 (e) The City will treat future single family residential homes with separately provided irrigation water as 0.36 ERUs, representing 200 gpd/ERU. (1) The ERUs available to pressure zones within an operating area represent the combined capacity shared among those zones, not the ERUs available to each zone individually. General Notes Applicable to Entire Table - Surplus or (Deficient) source capacity (ERUs) are based on: (a) Approximately 521 gpd/ERU and a 2.37 MDD/ADD Peaking Factor (b) Typical residential growth and a planning level fire flow requirement less than or equal to 2,500 gpm for 2 hours (c) Flow between zones with or without consideration for booster pump station capacity. (d) The total ERUs added cannot exceed the System Total. 4/27/2026 4:20 PM 1 of 2 CityCouncilReports City of Moses Lake April 2026 Water System Capacity Analysis of Remaining Available ERUs Pressure Zone(s)20 hrs/day 22 hrs/day 24 hrs/day Montlake 469 2,315 3,338 Central 0 0 1,508 Moses Pointe 469 2,027 2,097 System Total 469 2,315 4,150 521 gpd/ERU Basis: Consistent with 2024 Water Facilities Inventory Connections and 2024 Annual Supply Volume Remaining ERUs based on: 2021 Maximum Day Demand Plus Actual Connections Added and Future Capacity Improvements (Well 29, Well 34, and Reservoir 10) Pumping Rate Adjusted for Operating Hours During the Maximum Day Demand Wheeler and Lakeview Operating Area1 469 2,315 3,295 Larson and Knolls Vista Operating Area1 0 228 765 (1) The ERUs available to pressure zones within an operating area represent the combined capacity shared among those zones, not the ERUs available to each zone individually. (c) Flow between zones with or without consideration for booster pump station capacity. (d) The total ERUs added cannot exceed the System Total. (e) The City will treat future single family residential homes with separately provided irrigation water as 0.36 ERUs, representing 200 gpd/ERU. General Notes Applicable to Entire Table - Surplus or (Deficient) source capacity (ERUs) are based on: (a) Approximately 521 gpd/ERU and a 2.37 MDD/ADD Peaking Factor (b) Typical residential growth and a planning level fire flow requirement less than or equal to 2,500 gpm for 2 hours 4/27/2026 4:20 PM 2 of 2 CityCouncilReports Moses Lake City Council Retreat May 1 & 2, 2026 Packet Addendum 5-4-26 Friday, May 1, 2026 -LINKS UNREPAIRABLE FROM PAGE 1 Leadership, Policy Making, & Working Together Polarity Thinking – (external links) Polarity Thinking 101: Intro to the Power of Polarities (Article) Polarity Thinking. A Powerful Tool for Building Leadership (Article) What is a Polarity? (Video) Polarity Management (Video) Vertical Development – (external links) What is Vertical Development (Article) - Ryan Gottfredson What is Vertical Development (Video) - Ryan Gottfredson