2018 1023 Council Agenda Packet__________________________________________________________________________________________________
Moses Lake City Council
Karen Liebrecht, Mayor | David Curnel, Deputy Mayor | Mike Riggs, Council Member | Don Myers, Council Member
Daryl Jackson, Council Member | Ryann Leonard, Council Member| Dean Hankins, Council Member
Moses Lake Civic Center – 401 S. Balsam
Study Session
October 23, 2018 at 6:00 p.m.
Study Session – 6:00 p.m.
Homelessness Issue Discussion
Presented by John Williams, City Manager
Summary: Discussion.
The purpose of the study session is to allow the city council to discuss matters informally and in greater detail than permitted at
formal council meetings. While all meetings of the council are open to the public, study sessions discussions are generally limited to
the council, city staff and consultants.
______________________________________________________
Regular Meeting Agenda
October 23, 2018 at 7:00 p.m.
Call to Order – 7:00 p.m.
Roll Call
Pledge of Allegiance
Summary Reports:
Mayor’s Report
Additional Business
City Manager’s Report
Citizen’s Communications – Identification
Citizens who would like to address the Council must complete one of the blue speaker request cards and submit it to the
City Clerk. There is a (5) minute time limit per speaker.
Presentation
Grant County PUD – Rate Increase
Consent Agenda Motion
All items listed below are considered to be routine and will be enacted by one motion. There will be no separate
discussion of these items unless a Council Member requests specific items to be removed from the Consent Agenda for
discussion prior to the time Council votes on the motion to adopt the Consent Agenda.
#1 a.City Council Meeting Minutes dated October 9th and 13th
b.Bills and Checks Issued
c.Set Public Hearings for Property Tax Levy and 2019 Budget
Old Business
#2 Business License Amendment MLMC 5.04 – Ordinance 2911 - 2nd Presentation Motion
Presented by Cindy Jensen, Finance Director
Summary: Council to review and adopt ordinance as presented
#3 Solid Waste Services Discussion
Presented by Cindy Jensen, Finance Director
New Business
#4 Surplus Property Resolution 3746
Presented by Gil Alvarado, Deputy City Manager
Summary: Council to review and adopt resolution as presented
#5 Lodging Tax Advisory Committee Funding Recommendations
Presented by Cindy Jensen, Finance Director
Summary: Council to review and advise staff on how to proceed
#6 Multi Family Project Authorization – Pioneer Meadows
Presented by Gil Alvarado, Deputy City Manager
Summary: Council to review and authorize agreement as presented
#7 Property Lease
Presented by Fred Snoderly, Municipal Services Director
Summary: Council to review and authorize negotiation
Administrative Reports
Council Communications and Reports
Adjournment
MOSES LAKE CITY COUNCIL
October 9, 2018
CALL TO ORDER
The regular meeting of the Moses Lake City Council was called to order at 7:00 p.m. by Deputy Mayor Curnel in the Council Chambers of the Civic Center, 401 S. Balsam, Moses Lake,
Washington.
ROLL CALL
Present: Deputy Mayor Curnel; Council Members Jackson, Myers, Leonard, Riggs, and Hankins. Absent: Mayor Liebrecht.
Action taken: Council Member Hankins moved to excuse Mayor Liebrecht, second by Council Member Riggs. The motion carried 6 – 0. PLEDGE OF ALLEGIANCE
MSO/HIPAA Officer Todd Schanze led the Council in the Pledge of Allegiance.
SUMMARY REPORTS:
ADDITIONAL BUSINESS
Council Member Hankins requested to have the topic of Street Widths on the next agenda.
CITY MANAGER’S REPORT
New Police Officers Chief Kevin Fuhr shared a brief bio and delivered oaths of office for recent Basic Law Enforcement Academy (BLEA) graduates Todd Taylor and Mitch Hohman.
Budget Presentation City Manager John Williams distributed a three-year comparison of revenue and expenditures at the meeting.
Secretary of State Technology Grant
The City has been awarded a grant to partially fund an Electronic Contract Management Software. Action taken: Council Member Leonard moved to authorize the City Manager to accept the
Secretary of State Technology Grant in the amount of $30k and to execute the Laserfiche
Software Contract in the amount of $45k, second by Council Member Riggs. The motion carried 6 – 0. Surplus Property Resolution 3745
Council met in Executive Session at a prior meeting and then authorized the City
Manager to execute documents for the sale of certain property. This resolution will formally surplus this property. Action taken: Council Member Hankins moved to adopt Resolution 3745 as presented at the
meeting, second by Council Member Myers. The motion carried 6 – 0.
CITY COUNCIL MINUTES – October 9, 2018
pg. 2
CONSENT AGENDA
#1 a. City Council meeting minutes September 25, 2018.
b. Claims in the amount of $701,701.28; prepaid claim checks in the amount of ($856.08), $39,650.23, and $650,864.35; claim checks in the amount of $1,260.688.86; and payroll checks in the amount of $380,665.19. c. Accept Street Light Rehab Bid Opening. d . Larson Rec Center Architecture Contract.
Action taken: Council Member Hankins to approve items a, b, c, and d as presented, second by Council Member Riggs. The motion carried 6 – 0. #1 e. Surplus Generator Resolution 3744.
Council Member Jackson pulled this item from Consent to request its value. Action taken: Council Member Hankins to approve item e from the Consent Agenda, second by Council Member Riggs. The motion carried 5 – 1, Council Member Jackson opposed.
OLD BUSINESS
#2 City Business Logo MLMC 1.16 Amendment Ordinance 2909 First presentation of the draft ordinance occurred on September 25th. The amendment will add a new logo design for official city business and move the existing logo designs to the alternate city logo section of the Code.
Action taken: Council Member Leonard moved to adopt Ordinance 2909, second by Council Member Myers. The motion carried 6 – 0. NEW BUSINESS 1 OF 2 #3 Business License Amendment MLMC 5.04 The amendments bring the city regulations in line with recent state legislation. 1st presentation of the ordinance. No action taken. ADMINISTRATIVE REPORTS
City Manager Williams advised that Council attending the AWC Regional Meeting in Kennewick this Thursday will depart with staff from City Hall at 4:00 p.m. City Clerk Debbie Burke shared that the City recently contracted with a professional codification
company and the new modern version of the online Code went live on October 2nd.
Deputy City Manager/Community Development Director Gil Alvarado spoke with Planning Commission members that recently reviewed street widths and they do not have an interest to investigate potential changes.
CITY COUNCIL MINUTES – October 9, 2018
pg. 3
Mr. Alvarado also announced that the signs in common spaces regulation will require a change in the MLMC and safety factors need to be taken into account for some of the approved
locations. Mr. Alvarado provided an update on homeless observations in other cities and what issues we have in common. Staff are working on strategies to deal with the new issues resulting from the recent 9th Circuit Court decision on the Boise, ID case.
COUNCIL COMMUNICATIONS AND REPORTS – no action taken. EXECUTIVE SESSION
Deputy Mayor Curnel called an Executive Session at 7:36 p.m. to be held for 5 minutes pursuant
to RCW 42.30.110(1)(c) to consider the minimum price at which real estate will be offered for sale with potential action to follow.
NEW BUSINESS 2 OF 2 Purchase and Sale Agreement
A resolution to surplus this property will be presented at the next Council Meeting. Action taken: Council Member Riggs moved to authorize the City Manager to sign and execute all documents to complete the purchase and sale agreement as discussed in Executive Session, second by Council Member Jackson. The motion carried 6 – 0.
ADJOURNMENT
The regular meeting was adjourned at 7:45 p.m.
______________________________________ Karen Liebrecht, Mayor ATTEST____________________________________
Debbie Burke, City Clerk
MOSES LAKE CITY COUNCIL – SPECIAL MEETING
Saturday, October 13, 2018
CALL TO ORDER
A meeting of the Moses Lake City Council was called to order at 8:30 a.m. by Mayor Liebrecht in the Council Chambers of the Civic Center, 401 S. Balsam, Moses Lake, Washington.
ROLL CALL
Present: Mayor Liebrecht; Deputy Mayor Curnel; Council Members Jackson, Myers, Leonard, Riggs, and Hankins.
STUDY SESSION
City Manager John Williams, Deputy City Manager/Community Development Director Gil Alvarado, and Consultant Lloyd Halverson worked with Council to determine long and short term goals for the city. ADJOURNMENT
The meeting adjourned at 3:00 p.m.
______________________________________
Karen Liebrecht, Mayor
ATTEST____________________________________ Debbie Burke, City Clerk
Page 1 of 1
STAFF REPORT
To: John Williams, City Manager
From: Cindy Jensen, Finance Director
Date: October 18, 2018
Proceeding Type: Consent Agenda
Subject: Set Date for Public Hearings—2019 Preliminary Budget and 2019
Property (Ad Valorem) Tax Levy
Legislative History:
• First Presentation: October 23, 2018
• Second Presentation:
• Requested Action: Motion to set a date to conduct public hearings
Staff Report Summary
In accordance with Washington State law it is necessary to schedule:
• A public hearing to review Revenue Sources and Consideration of Legislation pertaining
to Ad Valorem (Property) Tax to be levied for collection in 2018; and
• Two public hearings on the 2019 Preliminary Budget.
We are requesting that Council set the date of November 13, 2018 for the public hearing on the
2019 Property (Ad Valorem) Tax and the first public hearing on the 2019 Budget; and November
27, 2018 for the second public hearing on the 2019 Budget.
The 2019 Preliminary Budget document will be posted on the City’s website on November 1,
2018.
Staff Recommendation
Staff recommends City Council set the dates for public hearings regarding the 2019 Budget and
the Property (Ad Valorem) Tax levy.
Page 1 of 2
STAFF REPORT
To: John Williams, City Manager
From: Cindy Jensen, Finance Director
Date: October 18, 2018
Proceeding Type: New Business
Subject: MLMC Title 5 Business Licenses amendment Ordinance 2911
Legislative History:
• First Presentation: October 9, 2018
• Second Presentation: October 23, 2018
• Action: Motion
Staff Report Summary
Attached is a draft ordinance updating our Code to comply with the newest legislative
requirements regarding business licensing. The only amendments required at this time deal with
the definitions and exemptions to bring our Code in line with the model ordinance developed by
the State Department of Revenue (DOR), in conjunction with the Association of Washington
Cities (AWC), and the Municipal Research and Services Center (MRSC).
Background
For several years, DOR has been researching how to simplify the administration of municipal
general business license for an applicant and improve the business climate. This led to the
passage of EHB 2005 in 2017. The basic premise of the law is that the State will become a “one-
stop-shop” for business licensing, and DOR will collect the local business licenses and submit it to
the municipalities.
The municipalities were tasked with creating a “model ordinance” for business licensing, and that
was completed in June 2018. RCW 35.90.080 requires that “a city that imposes a general
business license requirement must adopt the mandatory provisions of the model ordinance by
January 1, 2019”. The mandatory provisions include a definition of “engaging in business within
the city” that sets forth when a general business license is required; and a uniform minimum
licensing threshold. The attached ordinance makes changes so that the City of Moses Lake’s
regulation is in compliance with these provisions.
Page 2 of 2
We are on the DOR calendar to partner with Business Licensing Services in late spring of 2019.
There are several steps that we will need to go through to reach full implementation, and DOR
has committed to provide training for this program change. The advantage for the individual
businesses is to interact with one governmental agency (i.e. DOR) through a universal application
for business licensing.
Fiscal and Policy Implications
There are no fiscal implications as a result of this amendment.
Options
Option Results
• Adopt the Ordinance The Code will comply with newest legislative
requirements.
• Take no action. The Code will not be in compliance with
legislative requirements. Beginning January 1,
2019, the City will be prohibited from enforcing
general business license requirements until it
adopts the model ordinance provisions set forth
in RCW 35.90.
Staff Recommendation
Staff recommends Council adopt the Ordinance as presented.
Attachment
A. Ordinance 2911
Legal Review
The following documents are attached and subject to legal review:
Type of Document Title of Document Date Reviewed by Legal Counsel
• Ordinance
An Ordinance Amending Section
5.04.015 titled “Definitions” of the
Moses Lake Municipal Code
An Ordinance Amending Section
5.04.090 titled “Exemptions”
September 17, 2018
ORDINANCE 2911
AN ORDINANCE OF THE CITY OF MOSES LAKE,
WASHINGTON, AMENDING CHAPTER 5.04 “LICENSING
REGULATIONS” OF THE MOSES LAKE MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON ORDAINS AS
FOLLOWS:
Section 1. Amendment. Moses Lake Municipal Code Chapter 5.04 titled “Licensing Regulations”
is hereby amended to provide:
CHAPTER 5.04
LICENSING REGULATIONS
Sections:
5.04.010 Authority
5.04.015 Definitions
5.04.020 License Required
5.04.030 License - Contents
5.04.040 Application for New Business
5.04.050 Location Change
5.04.060 Term of License
5.04.070 Temporary Licenses
5.04.080 Fee Schedule
5.04.090 Certain Businesses Fee Exemptions
5.04.100 Payment of Fee - Time Limit
5.04.110 General Fund
5.04.120 Consent to Inspections and Searches
5.04.010 Authority: The provisions of this chapter shall be deemed an exercise of the authority
and power of the city to license, for the purposes of regulation and revenue, all and every kind of
business authorized by law and transacted and carried on within the corporate limits of the city,
as provided by RCW 35A.11.020 and 35.23.440.
5.04.015 Definitions: As used in this chapter, the following words shall have the meanings set
forth in this section:
(1) “Business, trade or profession” means any activity or venture carried on for profit
or held out as a service for fees whether paid in cash or by means of barter or
trade.
(2) “Engaging in business”
(a) The term “engaging in business” means commencing, conducting, or
continuing in business, and also the exercise of corporate or franchise
powers, as well as liquidating a business when the liquidators thereof hold
themselves out to the public as conducting such business.
(b) This section sets forth examples of activities that constitute engaging in
business in the City, and establishes safe harbors for certain of those
activities so that a person who meets the criteria may engage in de minimus
business activities in the City without having to pay a business license fee.
The activities listed in this section are illustrative only and are not intended
to narrow the definition of “engaging in business” in subsection (1). If an
activity is not listed, whether it constitutes engaging in business in the City
shall be determined by considering all the facts and circumstances and
applicable law.
(c) Without being all inclusive, any one of the following activities conducted
within the City by a person, or its employee, agent, representative,
independent contractor, broker or another acting on its behalf constitutes
engaging in business and requires a person to register and obtain a business
license.
(i) Owning, renting, leasing, maintaining, or having the right to use, or
using, tangible personal property, intangible personal property, or real
property permanently or temporarily located in the City.
(ii) Owning, renting, leasing, using, or maintaining, an office, place of
business, or other establishment in the City.
(iii) Soliciting sales.
(iv) Making repairs or providing maintenance or service to real or tangible
personal property, including warranty work and property
maintenance.
(v) Providing technical assistance or service, including quality control,
product inspections, warranty work, or similar services on or in
connection with tangible personal property sold by the person or on
its behalf.
(vi) Installing, constructing, or supervising installation or construction of,
real or tangible personal property.
(vii) Soliciting, negotiating, or approving franchise, license, or other
similar agreements.
(viii) Collecting current or delinquent accounts.
(ix) Picking up and transporting tangible personal property, solid waste,
construction debris, or excavated materials.
(x) Providing disinfecting and pest control services, employment and
labor pool services, home nursing care, janitorial services, appraising,
landscape architectural services, security system services, surveying,
and real estate services including the listing of homes and managing
real property.
(xi) Rendering professional services such as those provided by
accountants, architects, attorneys, auctioneers, consultants, engineers,
professional athletes, barbers, baseball clubs and other sports
organizations, chemists, consultants, psychologists, court reporters,
dentists, doctors, detectives, laboratory operators, teachers,
veterinarians.
(xii) Meeting with customers or potential customers, even when no sales or
orders are solicited at the meetings.
(xiii) Training or recruiting agents, representatives, independent
contractors, brokers or others, domiciled or operating on a job in the
City, acting on its behalf, or for customers or potential customers.
(xiv) Investigating, resolving, or otherwise assisting in resolving customer
complaints.
(xv) In-store stocking or manipulating products or goods, sold to and
owned by a customer, regardless of where sale and delivery of the
goods took place.
(xvi) Delivering goods in vehicles owned, rented, leased, used, or
maintained by the person or another acting on its behalf.
(d) If a person, or its employee, agent, representative, independent contractor,
broker or another acting on the person’s behalf, engages in no other
activities in or with the City but the following, it need not register and obtain
a business license.
(i) Meeting with suppliers of goods and services as a customer.
(ii) Meeting with government representatives in their official capacity,
other than those performing contracting or purchasing functions.
(iii) Attending meetings, such as board meetings, retreats, seminars, and
conferences, or other meetings wherein the person does not provide
training in connection with tangible personal property sold by the
person or on its behalf. This provision does not apply to any board of
director member or attendee engaging in business such as a member
of a board of directors who attends a board meeting.
(iv) Renting tangible or intangible property as a customer when the
property is not used in the City.
(v) Attending, but not participating in a “trade show” or “multiple vendor
events”. Persons participating at a trade show shall review the City’s
trade show or multiple vendor event ordinances.
(vi) Conducting advertising through the mail.
(vii) Soliciting sales by phone from a location outside the City.
(e) A seller located outside the City merely delivering goods into the City by
means of common carrier is not required to register and obtain a business
license, provided that it engages in no other business activities in the City.
Such activities do not include those in subsection (d).
The City expressly intends that engaging in business include any activity
sufficient to establish nexus for purposes of applying the license fee under the
law and the constitutions of the United States and the State of Washington. Nexus
is presumed to continue as long as the taxpayer benefits from the activity that
constituted the original nexus generating contact or subsequent contacts.))
(3) “Peddler” means any person whether a resident of the City of Moses Lake, or not,
traveling by foot, wagon, automobile vehicle or any other type of conveyance,
from place to place, from house to house, or from street to street, carrying,
conveying or transporting goods, wares, merchandise, meats, fish, vegetables,
fruits, garden truck, farm products or provisions, offering and exposing the same
for sale, or making sales and delivering articles to purchasers, or who, without
traveling from place to place, shall sell or offer the same for sale from a wagon,
automotive vehicle, railroad car or other vehicle or conveyance; and further
provided, that one who solicits orders and as a separate transaction makes
deliveries to purchasers as a part of a scheme or design to evade the provisions of
this chapter shall be deemed a peddler subject to the provisions of this chapter.
However, persons who regularly exhibit samples only for the purpose of securing
orders for future delivery only shall not be defined as a peddler. The word
“peddler” shall include the words “hawker” and “huckster”.
(4) “Person” means the singular and the plural and shall also mean and include any
person, firm or corporation, association, club, co-partnership, joint venture or
society or any other organization.
(5) “Transient merchant”, “itinerant merchant” or “itinerant vendor” means any
person, firm or corporation, whether as owner, agent, consignee or employee,
whether a resident of the city or not, who engages in a temporary business of
selling or delivering goods, wares and merchandise within the city, and who, in
the furtherance of such purpose hires, leases, uses or occupies any building,
structure, motor vehicle, tent, railroad boxcar, boat, public room in hotels,
lodging houses, apartments, shops or any street, alley, lot, yard or any other place
within the city, for the exhibition and sale of such goods, wares and merchandise,
either privately or at public auction; provided, that such definition shall not be
construed to include any person, firm or corporation who, while occupying such
temporary location, does not sell from stock, but exhibits samples only for the
purpose of securing orders for future delivery only. The person, firm or
corporation so engaged shall not be relieved from complying with the provisions
of this chapter merely by reason of associating temporarily with any local dealer,
trader, merchant or auctioneer, or by conducting such transient business in
connection with, as a part of, or in the name of any local dealer, trader, merchant
or auctioneer.
(6) “Transient business” or “itinerant business” means a business operated by a
transient merchant, itinerant merchant or itinerant vendor.
(7) “Bona fide charitable or nonprofit organization” means any tax exempt nonprofit
corporation, association, corporation, or organization recognized by the State of
Washington and Federal Government.
5.04.020 License Required: It is unlawful for any person, firm, corporation, or association to
engage in any kind of business, trade or profession authorized by law, which is not licensed as a
transient merchant, itinerant merchant, itinerant vendor, or the like by Moses Lake Municipal
Code 5.06, and for which a license is required, as provided in this chapter, within the city,
without first obtaining a license as provided for by this chapter. Any person, firm, corporation, or
association owning any rental units or mobile home spaces used for residential purposes which
have an on-site residential manager shall be required to obtain a business license. Any person,
firm, corporation, or association owning any transient living units, mini-storage units,
recreational vehicle spaces, or campground spaces shall be required to obtain a business license.
5.04.030 License - Contents: All licenses provided for in this chapter shall be issued by the
Finance Director upon paying to the Finance Director the proper license fee as provided in this
chapter. All licenses shall bear the name of the licensee, and shall designate the nature of the
business, trade, or profession operated by the licensee; and shall also designate the location
where the business, trade, or profession is carried on, the date of expiration of the license, the
date of the issuance of the license, and the amount paid for the license. Each licensee shall
conspicuously post such license in his place of business or office, and shall produce such license
for inspection if required to do so by any authorized city official.
5.04.040 Application For New Business: If the licensee is a new business, prior to the issuance
of the business license, the Finance Director shall submit the application therefor to the Fire
Chief and the Building Inspector of the city for approval of the location where the licensee is to
carry on the business, trade or profession, and the business license shall be issued only if the
location is in compliance with building and fire codes of the city as those codes relate to existing
and/or new structures.
5.04.050 Location Change: If an existing licensee desires to change the location of the business,
trade, or profession from the location designated on the business license, application must be
made to the Finance Director prior to the change in location and the Finance Director shall, prior
to the issuance of a new business license, submit the application therefor to the Fire Chief and
the Building Inspector of the city for approval of the new location where the licensee is to carry
on the business, trade, or profession, and the business license shall be issued only if the location
is in compliance with building and fire codes of the city as those codes relate to existing and/or
new structures. There shall be no additional business license fee assessed an existing business
changing its location, and the new business license issued shall carry the same expiration date.
5.04.060 Term of License: All licenses shall be for a period of one (1) year, unless otherwise
provided in this chapter; such license is to begin January first of each year and terminate the
following December thirty-first, and it must be renewed annually in advance. No license shall be
transferable. All licenses will be renewed through the Finance Director with payment of the
yearly fee.
5.04.070 Temporary Licenses:
A. Licenses issued for the following businesses by the Finance Director shall be
temporary and a permanent license shall not be issued by the Finance Director until the business
has been approved by the Grant County Health Department, which approval must be obtained
within thirty (30) days after the issuance of said temporary licenses:
1. Bakeries;
2. Cafes and restaurants;
3. Confectioneries;
4. Grocery stores;
5. Meat markets;
6. Produce stores (wholesale and retail)
7. Soda fountains;
8. Taverns;
9. Auto courts;
10. Cabin courts;
11. Hotels;
12. Trailer courts.
B. If at any time any of the businesses licensed in this section do not meet with
the approval of the Grant County Health Department, the license shall be revoked and
shall not be reissued until such business again meets with the approval of the Grant
County Health Department.
5.04.080 Fee Schedule: The business license fee shall be assessed in accordance with the
adopted fee schedule for the year, payable in advance, for each business, trade or profession,
conducted or carried on within the corporate limits of the city; provided, that tax exempt
nonprofit companies, associations, corporations, or copartnerships of whatever kind as defined
by the federal or state government, shall not be required to pay the business license fee, but,
nevertheless, shall obtain a business license, without fee, if conducting a business in order to
raise funds from members outside the organization. The full business license fee as assessed in
accordance with the adopted fee schedule shall be prorated over four (4) quarters, payable
between January 1 and March 31, three (3) quarters of total cost payable between April 1 and
June 30, two (2) quarters of total cost payable between July 1 and September 31, and one (1)
quarter of total cost payable between October 1 and December 31. The business license for tax
exempt nonprofit companies, associations, corporations, or copartnerships of whatever kind as
referred to herein shall be obtained once and shall be effective for the lifetime of the
organization. This exemption is an addition to that provided in Section 5.04.090. No business,
profession or trade conducted or carried on in a single location under one management or
ownership shall pay more than one license fee regardless of the multiple nature of the business
carried on; Provided further that no tax exempt nonprofit company, association, corporation, or
copartnership of whatever kind as defined by the federal or state governments which operates or
conducts a community festival or event of no more than four days in duration shall be required to
obtain a business license as herein previously provided and the exemption which has been
provided shall extend to the festival's or event's participants operating under sanction of said
festival or event. Any business, profession or trade in more than one location within the city shall
pay a license fee for each location the business, profession, or trade is conducted.
5.04.090 Certain Businesses Exemptions: Recognizing that there are locally owned and operated
small or parttime businesses which would be unduly penalized by requiring licensing
under this chapter and the payment of the business license fee as provided in Section
5.04.080, there is exempted from this business licensing chapter those locally owned
and operated businesses, professions, or trades wherein the annual gross income is less
than two thousand dollars ($2,000) per year. A fee as provided for in this chapter shall
not be required in the following situations. To the extent set forth in this section, the
following persons and businesses shall be exempt from the registration, license and/or
license fee requirements as outlined in this chapter:
(1) Any person transacting and carrying on any business which is exempt from a
license fee by virtue of the Constitution of the United States, the Constitution of
the State of Washington, or the laws of the United States or the state of
Washington. Burden of proof is on the applicant;
(2) A person making casual or isolated sales of goods or merchandise not in the
course of a business at a flea market, rummage sale, yard sale, garage sale,
farmer’s market, bazaar or like sale when such sales, markets or bazaars are
conducted on a Friday, Saturday, Sunday or any City recognized holiday and
provided also, that such flea markets, bazaars or the like shall be licensed by the
City of Moses Lake for operation at the particular location indicated on that
license.
(3) Sales conducted by students of public or private primary and secondary schools.
(4) Farmers or gardeners selling their own unprocessed farm produce grown
exclusively upon lands owned or occupied by them;
(5) Charitable, religious or nonprofit organizations or corporations which have
received tax-exempt status under the Internal Revenue Code Section 501C(3), 26
USC 501C(3), as adopted or as hereafter amended. Any person claiming an
exemption shall file with the Finance Director or designee a copy of the tax
exemption status granted by the Internal Revenue Service. The Finance Director
or designee shall maintain a list of all organizations who have claimed exemption.
(6) Any person or business whose annual value of products, gross proceeds of sales,
or gross income of the business in the city is equal to or less than $2,000 and who
does not maintain a place of business within the city, shall submit a business
license registration to the Finance Director or designee. The threshold does not
apply to regulatory license requirements or activities that require a specialized
permit.
5.04.100 Payment of Fee - Time Limit:
A. All persons, co partnerships, companies, associations, or corporations who are
engaged in business or in practice of their trades or professions in the city shall procure
their license to operate on or before the thirty-first day of each and every January. In the
event the license is not procured on or before January thirty-first of each year, a late
penalty in the amount of fifty ($50.00) dollars shall be imposed and enforcement will be
taken as provided for in this section.
B. All persons, co partnerships, companies, associations, or corporations who commence
business or practice of their trades or professions in the city after the thirty-first day of
January of each and every year, shall within one month from the commencement date
procure their license to operate for the current year and if the license to operate is not
procured within the month, a late penalty in the amount of fifty ($50.00) dollars shall be
imposed and enforcement will be taken as provided for in this section.
C. When the Finance Director determines that a violation of this chapter exists, he or she
may proceed against that violator using the procedures provided for in Chapter 1.20
MLMC.
D. Appeals: Any enforcement taken by the Finance Director shall be appealable as
provided for in Chapter 1.20 MLMC, with the informal administrative appeal authorized
by section 1.20.120 to the Finance Director.
5.04.110 General Fund: All funds received by the city under the terms of this chapter shall be
paid into the General Fund of the city and budgeted annually for any municipal purpose, as
required by law.
5.04.120 Consent to Inspections and Searches: Every person who obtains a business license
hereunder agrees to subject their place of business whether it be a building, room, cart, stand,
vehicle, or stock of merchandise to inspection by city, county and health district and state
officials with jurisdiction to enforce, health, safety, occupational, and tax laws.
Section 2. Effective date. This ordinance shall be in full force and effect upon its passage and
publication of its summary as provided by law.
PASSED by the City Council of the City of Moses Lake, Washington, this 23rd day of October,
2018.
_____________________________________ Karen Liebrecht, Mayor
ATTEST:
_______________________________________ Debbie Burke, City Clerk
APPROVED AS TO FORM: _______________________________________
Katherine L. Kenison, City Attorney
Vote: Riggs Liebrecht Myers Jackson Curnel Leonard Hankins
Aye
Nay Abstain
Absent
Date Published: October 29, 2018
Date Effective: November 2, 2018
Page 1 of 3
STAFF REPORT
To:
From:
Date:
Proceeding Type:
Subject:
John Williams, City Manager
Cindy Jensen, Finance Director
October 19, 2018
Old Business
Solid Waste Service and Rate Discussion
Legislative History:
•First Presentation: August 14, 2018
•Second Presentation: September 11, 2018
•Requested Action: Discussion of Service Options and Rate Structure 1st Presentation
Staff Report Summary
Because of potential solvency issues in the Sanitation (Solid Waste) utility, staff is requesting
direction from Council to balance the 2019 budget. The final Cost of Service Study (COSS) is
attached.
Background
In response to the ongoing difficulty in balancing the Solid Waste budget, Council commissioned
a cost of service study which was conducted earlier this year. The consultant, Chris Bell from Bell
& Associates, presented the draft report to Council at a Study Session on August 14, 2018.
Council asked for additional information to be included in the report, and the report was finalized
in September.
The 2018 Solid Waste balance was barely balanced before increases in both commingled
recycling and the yard waste program expenses started. Council did authorize a 3% rate increase
as of September 1, but this will only cover the corresponding 3% increase in the hauling contract,
and doesn’t remedy the other program increases.
Also in 2018, the bottom dropped out of the recycling market because of changes in the
worldwide market, and we are swinging from actually earning about $20,000 from recycling in
2017 to spending about $95,000 for disposal in 2018—an increase of $115,000. We also changed
Page 2 of 3
partners in the yard waste disposal program, with an additional cost of about $22,000. These
increases of $135,000 roughly match how far the budget is out of balance for both 2018 and
2019. (If not addressed, it is possible that this fund will need another interfund loan to close out
2018. This would come back to Council in late December if necessary.)
In September, Council authorized a change in the recycled material that would eliminate paper
from the acceptable stream. In discussing this with the consultant, this action could have an
unintended consequence of the current 48 gallon garbage carts not being adequate for the
garbage stream, if paper is moved out of recycling to garbage. Since the 48 gallon cart service is
the category that is “underbilled” according to the COSS, one way to address this change in
garbage streams is to eliminate the 48 gallon garbage service, and replace the 48 gallon carts
with 64 gallon carts. There are about 4,500 48 gallon cart services, and using the current
difference in the rates, this would bring the monthly cost to a customer from $16.90 to $22.63 or
$5.63/mo increase. This would generated additional revenue of about $300,000 for the utility.
The start-up cost for purchasing 4,500 new 64 gallon carts and labor to switch out the service is
estimated to also cost about $300,000. So the utility would need to borrow to cashflow the
initial conversion, but then rates would recoup the cost of service.
Another option is to just increase the cost of the 48 gallon cart to better match the cost of
service, identified in the study to be $23.73/month, (which is a little more than the current 64
gallon service.) If we are looking just to bring in about $200,000 to eliminate the deficit and start
building a prudent reserve, the 48 gallon cart would need to be raised about $3.75/month, to
$20.65, which is still a discount compared to the 64 gallon cart.
There are many variations of the rate structure that can be done to bring this fund back into
balance. If there are other proposals, we will cost them for the next presentation
Fiscal and Policy Implications
Council is required to balance the Solid Waste Utility budget. Any proposed changes will need to
be published in the fee schedule.
Options
Option Results
• Move to adopt a change in the solid
waste fee structure/schedule
1st Presentation, no motion required
• Give staff direction to change the solid
waste program or fee structure
Provide staff with specific changes
• Take no action The Solid Waste fund will be out of compliance
with state law balanced budget requirements.
Page 3 of 3
Staff Recommendation
Staff recommends City Council give direction regarding any changes to the solid waste program
and/or fee schedule.
Attachments
A. Cost of Service Report for Waste and Recycling Collection—City of Moses Lake
Legal Review -- N/A
Cost of Service Report for Waste and Recycling Collection
City of Moses Lake
Bell & Associates [Course title]
Moses Lake Cost of Service Report August 2018
Table of Contents
Background ..................................................................................................................................... 1
Cost of Service ................................................................................................................................ 1
Residential Collection ...................................................................................................................... 2
Recycling ........................................................................................................................................ 3
Why the Cost of Recycling Processing has Increased? ................................................................... 3
City Recycling Program ................................................................................................................... 5
Recycling Depot .............................................................................................................................. 5
Yard Debris ..................................................................................................................................... 6
Comparable Rates .......................................................................................................................... 6
Commercial Service ........................................................................................................................ 7
Recommended Steps ...................................................................................................................... 8
Recommended System Changes .................................................................................................... 8
Contract for All Services .................................................................................................................. 9
Service Procurement ..................................................................................................................... 10
Moses Lake Cost of Service Report August 2018
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Background
The City of Moses Lake utilizes a combination of private contractors and city departments to provide
waste management services to the residential and commercial customers. Administration, invoicing,
and customer service are provided by the City. Collection of solid waste, recycling, and yard debris
is contracted to Lakeside Disposal and Consolidated Disposal. Collected waste is disposed at the
Grant County Landfill and the Moses Lake Transfer Station. Recovery of recyclable materials is
completed by Waste Management in their Spokane facility. Baling and transport of the collected
recycling is contracted to Lakeside Disposal. Yard debris and other organic waste collected from
residential customers is processed / composted by Ovenell Farms in Quincy.
Table 1 details the average number of units collected monthly by Lakeside Disposal and
Consolidated Disposal.
Table 1: Average Monthly Collected Units
Service Units Carts / Cans Commercial Containers Drop Box Hauls Total
Lakeside 6,612 836 83 7,531
Consolidated 330 37 64 431
Totals 6,942 873 147 7,962
Cost of Service
For the current fiscal year, budgeted revenues for collection services was higher than the budgeted
expenses for collection. However, the cost of processing commingled recycling in 2018 has
substantially increased compared to 2017. The value of the collected material in 2017 was $21,653,
but in 2018, the cost of processing now exceeds the value of the collected materials. For the first six
months of 2018, the City has incurred $43,676 of costs to bale and process the collected materials.
In 2017, the revenue from the collected material was $24 per ton, but in 2018, the cost exceeds the
value by $95 per ton. This is a change of $119 per ton from the previous year. The projected cost of
processing recycling for 2018 is approximately $95,000. Table 2 summarizes the financial
performance of the solid waste fund for the previous years and the expected results for the current
fiscal year.
Table 2: SW Fund 490 Summary Results
Fiscal Year 2015 2016 2017 2018
Service Revenue $3,170,920 $3,448,340 $4,002,009 $4,340,000
Recycling Revenue / (Cost) $153 $1,441 $21,653 $(95,000)
Collection Expense $3,534,207 $3,573,159 $3,955,217 $4,135,243
Balance $(363,134) $(123,378) $68,445 $109,757
Not included in Table 2 is the interfund loan activity and the fund balance
Moses Lake Cost of Service Report August 2018
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Over the previous years, the cost of providing service exceeded the revenue generated. Losses were
offset by interfund loans. The reason for the losses was the rates charged for residential collection
were less than the cost of providing the service. However, the losses from residential service were
to be offset by charging commercial customers a rate higher than the cost of service. Commercial
customers were, and still are, subsidizing residential customers.
While many jurisdictions have rates that subsidize one class of customers, the method employed by
the City was not well executed. Typically, the subsidization is on the smallest cart / container volume
to provide a reasonable financial incentive to reduce disposed waste by diverting material to the
recycling container. For residential collection, a low volume roll cart is 20 gallons, followed by the 35
gallon, 48 gallon, 64 gallon, and 96 gallon. A reliable rate method for residential service is to set the
rate at the cost of service for the most popular cart volume, and to provide a subsidy from the larger
volume carts to offset the reduced cost for the smaller volume cart. Since the City has only 3 cart
sizes, a pragmatic approach is to set the lowest volume, the 48 gallon cart, at the cost of service and
set the rate for the 64 and 96 gallon cart above the cost of service to provide a financial incentive to
reduce waste volume and increase recycling.
Residential Collection
Contracted collection includes weekly garbage, every-other-week collection of commingled
recycling, and weekly collection of yard debris from March to November. Assuming a resident sets
out their garbage and recycling every week, they will set a cart out 117 times over a 12 month period:
52 times for garbage, 26 times for recycling, and 39 times for yard debris. The contracted cost per
pick-up is $1.61 ($15.65 x 12 months / 117 pick-ups).
The most popular cart volume is the smallest cart size available (48 gallons) with 4,474 (67%) of the
6,425 residential customers selecting it for waste disposal. The cost of service for the 48 gallon cart
is detailed in Table 3.
Table 3: Cost of Service Calculation for 48 Gallon Residential Service
Service Component Solid Waste Recycling Yard Debris Total Cost
Collection Cost ¹ $6.96 $3.48 $5.22 $15.65
Disposal / Processing ² $2.15 $1.38 $0.83 $4.36
Roll Cart Cost $0.12 $0.12 $0.12 $0.36
City Administration $2.77 $2.77
WA Refuse Tax ³ $0.59 $0.59
Total Cost $12.59 $4.97 $6.17 $23.73
Current Rate $16.41
Loss $(7.32)
Table Notes
1. Annual pick-ups per service was multiplied by $1.61 and then divided by 12 months to calculate the
collection cost – SW is (52 pick-ups per year x $1.61) / 12 months = $6.96
2. Assumes 36 pounds per waste set out per week, recycling averages 24 pounds per customer per
month, and yard debris averages 67 pounds per customer per month.
3. Washington refuse tax is 3.6% and is assessed on the current $16.41 rate.
Moses Lake Cost of Service Report August 2018
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Multiplying $7.32 by the 4,474 customers that have a 48 gallon cart is a monthly loss of $32,760. In
addition to the loss on the 48 gallon cart, the 64 gallon cart and all of the senior cart sizes are being
provided at less than the cost of service. Residents with a 96 gallon cart as well as the commercial
cans / carts have rates that cover the cost of service. The combined loss on cart and commercial
can collection service is approximately $30,300 per month. Table 4 details the cost of service for
residential service with a 64 gallon cart.
Table 4: Cost of Residential Waste Collection with a 64 Gallon Cart
Service Component Solid Waste Recycling Yard Debris Total Cost
Collection Cost $6.96 $3.48 $5.22 $15.65
Disposal / Processing $2.84 $1.38 $0.83 $5.05
Roll Cart Cost $0.12 $0.12 $0.12 $0.36
City Administration $2.77 $2.77
WA Refuse Tax $0.79 $0.79
Total Cost $13.48 $4.97 $6.17 $24.62
Current Rate $21.87
Loss $(2.75)
Recycling
As previously noted, the cost of processing recycling has increased to a point where the value of the
collected material doesn’t pay for the sorting costs incurred by the material recovery facility. Table 5
compares the cost of recycling in 2017 to 2018.
Table 5: Comparison of Cost for Residential Recycling
Service Component 2017 2018
Collection $3.36 $3.48
Processing $(0.26) $1.38
Total Cost $3.10 $4.85
$ ▲ $1.76
Why the Cost of Recycling Processing has Increased?
China was the single largest consumer of recyclable materials generated in North America. In prior
years, it consumed 40% of all scrap materials sold in the US; 55% of all paper/fiber, and 51% of all
recovered plastics. Most of the recyclable collected in the Pacific Northwest region were shipped to
China for remanufacturing into new products & packaging.
The Chinese government has taken significant unilateral actions that have completely disrupted the
global market for recovered materials.
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1). Banning all Mixed Paper and Mixed Plastics: Effective January 1st, 2018, The Ministry of
Environmental Protection of the People’s Republic of China (MEP) has banned the import of 21
recyclable commodities, including Mixed Paper & Mixed Plastics. The single largest commodity
produced from the City’s curbside recycling program has been Mixed Paper, which comprises
approximately 45% of the collected recycle tons.
2). Reduction of Contamination Threshold to 0.50%: In addition to the ban, MEP announced that
effective March 2018 all scrap materials imported into China must be 99.50% pure. No material
exceeding 0.50% contamination will be allowed into the country.
On July 11, MEP released a proposal to completely ban imports of recovered fiber and every other
form of solid waste. While all of the mixed paper and plastic have been banned, cardboard (OCC)
and other high grade fiber has been exported to China.
The effect of the ban has decreased OCC values. A significant amount of the #1 (PET, water bottle,
pop bottle) and the #2 Clear and Colored HDPE (milk jug, detergent bottle) collected in the West is
sold domestically. However, the reduced exports to China has created a glut of recyclables in the
US markets. All of the collected plastics that were being exported to China don’t have market outlets.
The markets for #3 through #7 plastic containers, tubs, and rigid plastic has disappeared.
The primary reasons for China’s coming ban on recyclables:
The Chinese government is working to develop a strong domestic collection infrastructure to supply
recyclable materials to domestic mills.
The Chinese government is eliminating manufacturing facilities that generate excessive pollution.
The government is shutting down over 2,000 antiquated recycling plants across the country.
All local material processors have changed their operations to capture marketable materials. The
changes have significantly increased the amount charged to the waste and recycling haulers. Waste
Management, the processor used by the City, charged $84.90 per ton in July for residential
commingled recycling. An addition $25 per ton is charged to bale and transport commingled material
to Spokane; therefore, the total cost is $109.90 per ton.
Recent composition studies completed on the commingled mix collected in Clark County,
Washington reveal a majority of the current collected materials don’t have a viable market. With state
mandates enacted to divert materials, finding markets in the future for mixed waste paper and
plastics is extremely difficult. All non-marketable items will end up in the landfill. Local jurisdictions
can’t stop the flow of incoming materials now that these recycling programs have been implemented
and customers have become accustomed to placing certain materials in the cart for recycling.
With the elimination of markets for mixed waste paper and mixed plastics, the City should consider
collecting materials that have a viable market to include cardboard, steel / tin cans, clean metal,
aluminum cans, and #1 PET / PETE and #2 HDPE plastic bottles. Eliminating mixed waste paper
from the recycling program would reduce the cost of processing; however, getting customers to
change their habits will be problematic.
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City Recycling Program
If recycling cost more than waste disposal, can the City end the current curbside collection program?
The State’s goal is to reach 50% recycling and composting. Chapter 70.95 RCW does not mandate
that each county or city adopt a 50% goal; however, each community is expected to set a goal that
suits its situation, provided that the goal is based on justified and sound reasoning.
Before making any decisions, the Department of Ecology (DOE) recommends that jurisdictions
consider all available options to maintain their recycling program(s). Other counties and cities have
instituted rate increases to offset the rising cost of commodities, adjusted the list of collected
materials, increased education and outreach efforts, and increased efforts such as policing set-outs
for contamination.
The DOE would request that Moses Lake contract Grant County, which is the wasteshed manager,
of any changes to their recycling program. The County would then notify the Department of the
changes to any recycling programs, the reason(s) for the change, and a plan for either a replacement
program or to reestablish the program at a future date. Grant County is currently in the process of
updating the Solid Waste Management Plan, so any future changes should be incorporated prior to
approval.
Recycling Depot
Moses Lake rate payers bear the cost to operate the recycling depot. People who live outside the
City that drop off materials for recycling benefit from the inequity of the current system. While no user
surveys have been completed by the City or the County, it has been observed that a growing portion
of the people that use the depot live outside the City. Unlike City residents, county residents are not
required to subscribe to waste collection services; therefore, many utilize the depot to dispose of
recyclables. Some people also use the depot to dispose of their waste in the commingled drop box,
as noted by the elevated level of contaminants and non-recyclable materials dumped in the recycling
container.
While the material markets are in decline and the cost of operating the depot increases, the City
should consider the following steps to reduce costs.
1. Restrict the usage of the facility to City rate payers. Users would have to identify themselves as
Moses Lake rate payers.
2. Collect materials that have a market value to include the following:
Cardboard
Aluminum
Steel / Tin cans
#1 Plastic (PET, water bottle, pop bottle)
#2 Clear and Colored HDPE (milk jug, detergent bottles)
3. Discontinue accepting all materials except glass. Curbside services are collected the remainder
of material that are recyclable.
4. Close the depot and discontinue accepting glass in the recycle stream.
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Yard Debris
Yard debris and other organic waste collected from residential customers is delivered to Ovenell
Farms in Quincy to be composted at a cost of $25 per ton. As long as residents set out clean material
for collection, Ovenell will provide the service. In the past, the level of contamination in the material
collected from residents caused the previous service provider to discontinue accepting organic waste
from Moses Lake. The City will continue to have an organic collection program as long as the
residents set out uncontaminated organic material.
Comparable Rates
Comparing rates to neighboring jurisdictions is complicated by the base level of service. Moses Lake
is the only city that has a 48 gallon cart as the base service with recycling and yard debris. None of
the compared cities offer a 64 gallon roll cart for waste. Table 6 compares the City’s cost for 48 gallon
and 96 gallon service to the rates charged by other jurisdictions. The service notes following the
table explains the levels of service that are compared.
Table 6: Comparable Residential Service Rates to Moses Lake’s Cost of Service
Service Moses Lake 48 gal
Moses Lake 96 gal
Grant County Richland Walla Walla Yakima
Waste - 48 gal cart $13.48
Waste - 32 gal cart / can $10.05 $17.60
Waste - 96 gal cart $14.89 $18.17 $23.30 $20.10
Yard Waste $6.17 $6.17 $20.00 $16.30
Richland – Waste & YD service $17.50
EOW Recycling $4.97 $4.97 $5.70 $4.76 $8.95
Service Notes:
Moses Lake cost of service for the 48 gallon base service is $24.62 and the cost of service for the
96 gallon cart is $26.03.
Grant County service is limited to only waste collection and is regulated through the UTC. Customers
that want 32 gallon service need to provide their own can whereas the 96 gallon cart is provided by
the regulated hauler.
Richland’s base service is a 96 gallon cart for waste collected weekly and a 96 gallon cart for yard
debris collected every-other-week (EOW). Recycling is through a subscription and is collected EOW.
Walla Walla base service is 96 gallon cart collected weekly and recycling is collected EOW. The
monthly rate is $28.06 ($23.30 + $4.76). Yard debris is a subscription and is collected weekly with a
96 gallon cart.
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Service Notes Continued: Yakima waste service is either a 32 gallon cart or a 96 gallon cart
collected weekly. Yard debris and recycling are subscription services. Yard debris is collected weekly
while recycling is EOW through Yakima Waste Systems, a UTC regulated collection company.
Commercial Service
The most popular level of service for commercial customers is a 2 yard container collected once a
week. Customers that generate a high volume of waste may require a drop box or roll off compactor.
Using industry averages for waste disposal weights, Table 7 details the cost of service for the 2 yard
container and the 30 yard drop box collected once a week.
Table 7: Cost of Service Calculation for Commercial Customers
Service 2 yd. Container 30 yd. Drop Box Note
Collection Cost $41.69 $997.74 Lakeside contracted amount
Landfill Disposal $12.02 $198.33 Assumed Industry Averages
City Administration $3.03 $0.98 Budgeted City costs
WA Refuse Tax $2.50 $48.33 3.6% on collection rate
Total Cost $59.24 $1,245.38
Current Rate $69.46 $1,342.46
Margin $10.22 $97.08
The additional revenue generated above the cost of commercial container and drop box service is
calculated at $29,800 per month. Table 8 compares the monthly loss from residential service to the
additional revenue generated from commercial service.
Table 8: Service Revenue by Source
Service Monthly Revenue Annual Revenue
Cart / Can Collection $(30,311) $(363,732)
Commercial Container / Drop Box Service $29,829 $357,954
Net Revenue $(481) $(5,778)
While the budget, less the additional cost of recycling, has the surplus of approximately $110,000
(Table 2), comparing the costs of service with the current customer mix shows an estimated loss.
Even if the fund generates $110,000 over the cost of service, the fund has generated debt from
losses during the previous years.
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Recommended Steps
Eliminating the loss from the residential collection rates should be completed over the next 17
months. Rather than one large increase in January, the City should increase the rates by half of the
necessary amount in January 2019 and the remaining amount in January 2020. Table 9 details this
approach. The additional revenue generated from the increase is approximately $219,000 annually.
Table 9: Proposed Residential Collection Rate Increases
Level of Service Current Rate 2019 Increase % ▲ 2020 Increase % ▲ Cost of Service
64 Gal Cart $21.87 $1.38 6.3% $1.38 5.9% $24.62
48 Gal Cart $16.41 $3.66 22.3% $3.66 18.2% $23.73
2nd Cart $12.96 $2.63 20.3% $2.63 16.9% $18.22
While it may be politically expedient to increase, or continue to increase the rates for commercial
customers, that approach has not proven successful in Moses Lake because the commercial
customer base is not large enough to absorb the costs. At some point, businesses will reduce service
or utilize other methods such as self-hauling, to reduce their garbage costs.
Recommended System Changes
During this project, practices and operations were observed that are unnecessarily complicated and
should be changed. While the City’s system has evolved over time, most of the operational
inefficiencies can be addressed with the commencement of a new collection contract in September
2020. Here are the recommended changes:
1. Eliminate the current daily calculation fee set up in the City’s invoicing system by establishing
collection rates based on the monthly cost of service. The day-use method utilized by the City was
established for water usage, not waste / recycling collection. This recommendation can and should
be implemented immediately.
2. Combine collection, waste disposal, recycling and yard debris processing under one service
contract.
Including the disposal cost with the collection cost provides the contractor a financial incentive
to select the lowest cost alternative for disposal and eliminates the additional administrative
time incurred by the City to reconcile the disposal invoices from Lakeside and Consolidated.
Establish a baseline cost for processing recycling and yard debris so rate adjustments can
be made by the City if necessary.
Require the contractor to provide a monthly cost for waste collection / disposal to easily
calculate the Washington State refuse taxes. The refuse tax is assessed on refuse collection
and disposal, not recycling. If Grant County is paying the tax on disposal, then the City is
liable for the amount incurred to collect waste only.
3. Change the method for invoicing drop box / roll off compactor service. Rate should be based on
the cost to haul the box / compactor plus the actual disposal cost.
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Require the contractor to invoice for drop box service independent of the City. The contractors
utilize invoicing systems designed for this type of service.
Monthly reports would be submitted to the City to account for the drop box / roll off compactor
service provided by the contractor.
4. Require the contractor to utilize collection trucks that are 5 years or newer.
While older trucks incur less depreciation expense, the trade-off is older trucks incur
additional repair costs and leak oil / fluids / leachate (garbage juice).
Requiring newer trucks levels the bid costs because some potential proposers don’t have
outdated trucks that can be relegated to Moses Lake. These proposers will need to purchase
trucks to provide the services.
5. Establish a City policy to set rates at the cost of service plus a 60 day operational reserve in the
fund balance. Once the reserve has been reached, the rates would be adjusted to account for the
savings.
Contract for All Services
There are four forms of collection services that are allowed by Washington State law in the cities are
as follows:
Municipal: This approach utilizes municipal employees and equipment to collect waste.
Contracted: Incorporated cities and towns may elect to contract with private companies for waste
and recycling collection. Services provided by the contractor and regulated by the jurisdiction need
to comply with RCW Chapter 70.95 (Washington State Solid Waste Management program).
Certificated: With this collection method, cities are not actively involved in the management of
garbage collection. Instead, it allows the UTC-certificated hauler to provide service under UTC
regulation and at rates approved by the UTC.
Licensed Collection: This method applies to municipalities that require private collectors to have
both a city-issued license as well as a UTC certificate. This approach gives the municipality limited
control over collection services and allows cities to require that important services be provided. For
instance, some cities in the past have required collection companies to pick up Christmas trees,
provide a semiannual residential cleanup, and provide free service to public buildings and facilities.
The City should consider an exclusive contract to provide comprehensive services for collection,
disposal, processing, billing and customer service. The primary role of the City would be to administer
the contract. The City would stipulate the services provided as well as regulate the collection rates
charged by the contractor.
There is also the assumption that some administrative costs would be reduced or eliminated with the
remaining costs to be covered from assessing a utility tax on future services. Cities are also allowed
to assess a utility a tax on waste collection services within their boundaries. Aside from the current
budgeted contracted services of collection, disposal, and processing, the City has budgeted
$252,613 for administration and shared utility expenses. These costs are approximately 7% of the
total budgeted expenses for collection services. The City currently is not dependent on the revenue
Moses Lake Cost of Service Report August 2018
Bell & Associates P a g e | 10
generated from waste and recycling collection; therefore, the transition to an exclusive contract
should not be complicated.
If the City increases the residential collection rates to the cost of service, there should be adequate
revenue to pay off the balance of the interfund debt incurred from 2013 to 2016 prior to the expiration
of the current collection contract. Taking these actions will also reduce the impact of the transition to
a full-service contract.
Service Procurement
If the City decides to procure collection service under a comprehensive service contract, the time
from the decision to the commencement of service typically requires 24 months. There are three
phases to the project.
Phase 1 is planning of the requested services, drafting of the contract and RFP, and issuance of the
request for services. Six to eight months should be budgeted for this phase.
Phase 2 is the evaluation of the proposals, selection of the service provider, and negotiation of the
contract. This phase requires four to five months to complete.
Phase 3 is the implementation phase where the contractor and city work in conjunction to provide a
smooth rollout of service. Depending on the requested services, this phase can vary from a few
months to ten months. Truck and container procurement are usually the reason for the prolonged
period in phase 3.
If the City decides to contact for services at the end of the current contract, which expires in
September 2020, the decision should soon be rendered.
Page 1 of 2
CITY OF MOSES LAKE
STAFF REPORT
To: John Williams, City Manager
From: Gilbert Alvarado, Deputy City Manager
Date: October 18, 2018
Proceeding Type: New Business
Subject: Sale of Surplus Property Resolution 3746
Legislative History:
• First Presentation: October 23, 2018
• Second Presentation:
• Requested Action: Motion
Staff Report Summary
Attached is Resolution No. 3746 declaring real property owned by the City of Moses Lake as
surplus. The subject properties are no longer needed for municipal purposes as initially intended
when the property was purchased and deeded to the City. The properties can be disposed of
and sold in commercially reasonable manner.
Background
In 2017, the City Council and staff had various discussions about some of the real property assets
owned by the City of Moses Lake. There was some direction given to staff to assess some of the
liabilities associated with these properties and could they be considered surplus.
Fiscal and Policy Implications
The sale of the subject property will save the General Fund revenues that have been used to
maintain the property free of weeds and debris.
Page 2 of 2
Options
Option Results
• Consider and approve Resolution 3746
declaring surplus property.
Authorize sale of subject property in a
commercially reasonable manner.
• Consider Resolution 3746 and not
declare the subject property surplus.
The real property continues to be owned and
maintained by the City of Moses Lake.
Staff Recommendation
The City Council should consider and approve Resolution No. 3746, declaring the subject real
property surplus.
Attachments
A. Resolution 3746
Legal Review N-A
RESOLUTION NO. 3746 A RESOLUTION DECLARING CITY OWNED REAL PROPERTY AS SURPLUS AND AUTHORIZING ITS SALE IN A COMMERCIALLY REASONABLE MANNER
RECITALS: 1. The City of Moses Lake no longer requires the property deeded to the city for municipal purposes, filed with the Grant County located in Section 22, Township 19 North, Range 28 East, W.M. 2. The property is legally described as follows:
TX# 4941 IN GOV LOT 6 22 19 28 TX# 4941 THAT PORTION OF GOVERNMENT LOT 6
IN SECTION 22, TOWNSHP 19 NORTH, RANGE 28 E.W.M., GRANT COUNTY,
WASHINGTON, DESCRIBED AS FOLLOWS; BEGINNING AT THE INTERSECTION OF THE
SOUTHEASTERLY LINE OF SECONDARY STATE HIGHWAY NO 7-E AND THE SOUTHEASTERLY LINE OF THIRD AVENUE AS CONVEYED TO THE CITY OF MOSES LAKE BY DEDICATION DEED (FILED NOVEMBER 27, 1950) AUDITOR'S FILE NO. 165243, RECORDS OF GRANT COUNTY; THENCE S23°38'W ALONG THE
SOUTHEASTERLY LINE OF SAID SECONDARY STATE HIGHWAY NO. 7-E A DISTANCE
OF 425.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING
S23°38'W A DISTANCE OF 60.00 FEET; THENCE S66°22'E A DISTANCE OF 180.00
FEET; THENCE N23°38'E A DISTANCE OF 60.00 FEET; THENCE N66°22'W A DISTANCE OF 180.00 FEET TO THE TRUE POINT OF BEGINNING. RESOLVED: 1. The City of Moses Lake, Washington, declares that the real property owned by the city and described above is surplus. 2. The real property described above can be disposed of and sold in a commercially reasonable manner. Adopted by the City Council on October 23, 2018. _______________________________ Karen Liebrecht, Mayor ATTEST: __________________________________________ Debbie Burke, City Clerk
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STAFF REPORT
To: John Williams, City Manager
From: Cindy Jenson, Finance Director
Date: October 18, 2018
Proceeding Type: New Business
Subject: 2019 Lodging Tax Advisory Committee Funding Recommendations
Legislative History:
First Presentation: October 23, 2018
Second Presentation:
Action: Motion
Staff Report Summary
The Moses Lake Lodging Tax Advisory Committee (LTAC) met on September 21st and October 10th
to consider the 2019 applications for funding support to eligible groups and organizations that
have positive impacts on tourism in the greater Moses Lake area. The funding source is the
hotel/motel tax that the City of Moses Lake receives from the State of Washington.
The LTAC Committee considered all applications in accordance with the LTAC General Guidelines
document with specific attention to the Project Evaluation Criteria portion of the Guidelines. The
LTAC recommended that the City Council fund 12 of the 17 applications received as outlined in
the attached summary.
Background
The Lodging Tax is an excise tax authorized by State law in RCW 67.28, Public Stadium, Convention,
Arts and Tourism Facilities. The City of Moses Lake has imposed an excise tax on charges for
lodging by hotels, motels, and similar business enterprises, pursuant to Chapter 82.08 RCW. In
Moses Lake, the total tax on lodging is 4% (this includes the original 2% from sales tax and the
additional 2% special excise tax.
Fiscal and Policy Implications
The City of Moses Lake’s Lodging Tax Fund is the source of city funding for tourism promotion.
The city intends to maintain a reserve in the fund, and will assess how much of the fund to
appropriate in a given year on an annual basis.
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The revenues received from the city’s hotel/motel tax may be used for the following purposes only:
1. Tourism marketing;
2. Marketing and promotions of special events and festivals designed to attract tourists;
3. Operations and capital expenditures of tourism-related facilities owned or operated by a
municipality of a public facilities district; or
4. Operations of tourism-related facilities owned or operated by
Note: As of July 1, 2013, capital expenditures for tourism-related facilities owned by nonprofit
organizations are no longer permitted expenditures of lodging tax funds.
Options
Option Results
Review and approve the LTAC funding
recommendations
The applicants move forward with budgeting the
funding of their requests
Review and revise the LTAC funding
recommendations
The City Council must advise the LTAC of their
revisions to the LTAC funding recommendations
Take no action The hotel/motel tax funds remain in place and
continue to accrue
Staff Recommendation
Staff recommends that the City Council discuss and advise staff on how to proceed.
Attachments
A. Summary of applications and LTAC funding recommendations
Legal Review N-A
Pg Amount LTAC
No.Proposed Use of HMT Requested Recommend LTAC Comments
1 Basin Gym Booster 1 Eastern WA State Sectionals Meet 20,000$ 10,000$
2 Moses Lake Spring Festival 12 Moses Lake Spring Festival 48,000$ 30,000$
funding for deposit to secure
better headliner
3 Moses Lake Business Association 33 Harvest Festival 3,000$ -$ attendees are local
4 Moses Lake Business Association 43 Harvest Ag Parade 3,000$ 1,000$
5 Moses Lake Business Association 53 Holiday Tree Lighting 9,000$ 2,000$
6 Moses Lake Business Association 63 Downtown Sip and Stroll 8,000$ 1,000$
additional advertising, event is
sustainable
7 Moses Lake Business Association 73 Downtown Brews and Tunes 8,000$ 4,000$
8 City - Museum & Art Center 83 Operations and Marketing 35,785$ 10,000$
communications and program
support line items only
9 City - Parks & Recreation 167 FlowRider Surface Replacement 45,000$ -$ eligible as capital expense
10 City - Parks & Recreation 178 Regional Marketing w/GC Tourism 75,000$ -$
$35k of request added to
Chamber Application #14, the rest
is not targeted to the city
11 Moses Lake Chamber of Comm 198 Moses Lake LEAD 30,000$ 30,000$
12 Moses Lake Chamber of Comm 247 Moses Lake Visitor Info Center 50,000$ 50,000$
13 Moses Lake Chamber of Comm 255 Moses Lake Freedom Fest 50,000$ 50,000$
14 Moses Lake Chamber of Comm 265 Moses Lake Advertising 115,000$ 150,000$
Chamber staff will meet with City
Parks staff regarding additional
marketing from Application #10
15 Columbia Basin Allied Arts 275
New Productions in summer and
during other events 30,000$ 20,000$
16 Visit Washington 285 Establish a Father's Day Airshow 60,000$ -$
17 Visit Washington 303 Central WA Events Marketing 75,000$ -$
Totals 664,785$ 358,000$
Organization
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CITY OF MOSES LAKE
STAFF REPORT
To: John Williams, City Manager
From: Gilbert Alvarado, Deputy City Manager
Date: October 18, 2018
Proceeding Type: New Business
Subject: Multi-Family Tax Exemption Contract – Pioneer Meadows Apts.
Legislative History:
• First Presentation: October 23, 2018
• Second Presentation:
• Requested Action: Motion
Staff Report Summary
Pioneer Meadows Apartments LLC, has submitted a proposal to permit a Multi-Family Housing Tax Exempt
development in accordance with MLMC 18.23, Multi-Family Tax Exemption. Currently there is one other multi-
family project within the corporate limits that has utilized this development tool as an in-fill incentive. Staff has
been through the pre-application process with the developer and this is the next request as part of their
permitting.
The approval requirements for this type of project fall under MLMC 18.23. See the following:
1. Approval: If an application is approved, the applicant shall enter into a contract with the city,
subject to approval by the City Council, regarding the terms and conditions of the project. Upon City
Council approval of the contract, the Community Development Director shall issue a Conditional
Certificate of Acceptance of Tax Exemption. The Conditional Certificate expires three (3) years from
the date of approval unless an extension is granted as provided in this chapter.
Background
Through the Growth Management Act planning process, the State of Washington found that many cities lacked
desirable, convenient, attractive, affordable, and livable places in urban centers benefiting and promoting the
public health, safety and welfare to stimulate new or enhanced residential opportunities. The outcome of the
State’s housing assessment was the Legislature adopted RCW 84.14, which provides in-fill incentive to cities
planning under the Growth Management Act. Cities may assess their housing needs and develop new multi-
family housing in urban centers that allow for special valuations and tax incentives.
MLMC 18.23 requires the applicant to apply and meet certain criteria to be eligible for the Multi-Family Housing
Tax exemption. Once it has been reviewed and approved by the Community Development Director, the City
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Council may approve a contract with the applicant approving the terms and conditions of the project. The
project will then be provided three (3) years to complete the conditions and then the final certificate will be
provided and submitted to Grant County Assessor for assessment and taxation. The special valuation is effective
for no more than twelve (12) years and only applies to the apartment buildings and not the underlying property,
open space or community facilities (such as pool, offices, parking lots, etc.)
The application has been received and accepted by the Community Development Director. The applicant is now
requesting a contract and will only have three years to complete the project. This may push out the exemption
as far as 2031.
Fiscal and Policy Implications
The estimated fiscal impact could be around $28,000 per year for twelve (12) years. This was considered when
the ordinance for multi-family tax exemption was passed. Currently the City is only receiving taxes on the land
that’s assessed value is $177,035 (approximately $650 in property tax per year). The project’s estimated value is
$22,500,000 per the applicant.
Options
Option Results
• Authorize the City Manager to sign the
Agreement with Pioneer Meadows
Apartments, LLC
Project moves forward under MLMC 18.23 and
property taxes are abated for twelve years.
• Modify the proposed Agreement Provide staff with specific changes
• Take no action Continued staff review
Staff Recommendation
Staff recommends the City Council consider authorizing the City Manager to sign a contract with Pioneer
Meadows Apartments, LLC for the Multi-Family Housing Tax Exemption as presented.
Attachments
A. Multi-Family Housing Limited Tax Exemption Application and Agreement
B. Vicinity Map
C. Site Plan
Legal Review
The following documents are attached and subject to legal review:
Type of Document Title of Document Date Reviewed by Legal Counsel
Agreement Multi-Family Housing Limited Tax
Exemption
July 9, 2018
CITY OF MOSES LAKE AND PIONEER MEADOWS APARTMENTS, LLC
MULTI-FAMILY HOUSING LIMITED PROPERTY
TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this ___ day of _______________, 2018 by and between Pioneer
Meadows Apartments, LLC, (hereinafter referred to as the “Owner”), and the CITY OF MOSES LAKE, a
municipal corporation of the State of Washington (hereinafter referred to as the “City”).
WITNESSETH:
WHEREAS, the City has an interest in stimulating new construction or rehabilitation of multi-family
housing in Residential Target Areas in order to reduce development pressure on single-family residential
neighborhoods, to increase and improve housing opportunities, and to encourage development densities
supportive of transit use, and
WHEREAS, the City has, pursuant to the authority granted to it by Chapter 84.14 RCW, designated various
Residential Target Areas for the provision of a limited property tax exemption for new multi-family
residential housing, and
WHEREAS, the City has, through Chapter 18.23 Moses Lake Municipal code (MLMC), enacted a program
whereby property owners may qualify for a Final Certificate of Tax Exemption which certifies to the Grant
County Assessor that the owner is eligible to receive a limited property tax exemption, and
WHEREAS, The Owner is interested in receiving the multiple family property tax exemption for
new/rehabilitated multiple family residential housing units in a Residential Target Area; and
WHEREAS, The Owner has submitted to the City a complete application form for at least four (4) units of
multi-family housing within a residential structure or as part of a mixed-use development. A minimum of
four (4) new units must be constructed or at least four (4) additional multi-family units must be added to
existing occupied multi-family housing. Existing multi-family housing that has been vacant for twelve (12)
months or more does not have to provide additional units so long as the project provides at least four (4)
units of new, converted, or rehabilitated multi-family housing; and
WHEREAS, the Owner has submitted to the City preliminary site plans and floor plans for multi-family
residential housing to be constructed on said property legally described as:
Lots 1 & 2 of Pioneer Meadows Major Plat, in the City of Moses Lake, Grant County.
Assessor’s Parcel Number(s) 110868051 and 110868052, commonly known as 200 E 9th Avenue and 300
E 9th Avenue, hereinafter referred to as the (“Site”), and generally referred to as Pioneer Meadows
Apartments (“Project”); and
WHEREAS, on August 2, 2018, the City determined that the Owner has met all the eligibility and
procedural requirements to qualify for a Conditional Certificate of Acceptance of Tax Exemption as
provided in Chapter 18.23 MLMC, with the exception of entering into this Agreement;
NOW, THEREFORE, the City and the Owner do mutually agree as follows:
1. The City agrees to issue the Owner a Conditional Certificate of Acceptance of Tax Exemption
subject to the terms and conditions of this Agreement.
2. The Owner agrees to construct the Project on the Site as described in the most recent site plans,
floor plans, and elevations on file with the City as of the date of this Agreement.
3. The project shall comply with all applicable zoning requirements, land use requirements, design
review requirements and all building, fire, and housing code requirements contained in the Moses
Lake Municipal Code (herein referred to as the “MLMC”) at the time a complete application for a
building permit is received.
4. The project, whether new, converted, or rehabilitated multiple-unit housing, must include at
least four (4) units of multifamily housing within a residential structure or as part of an urban
development.
5. The Owner agrees to complete construction of the agreed upon improvements within three (3)
years from the date the City issues the Conditional Certificate of Acceptance of Tax Exemption, or
within any extension thereof granted by the City.
6. The Owner is requesting an __EIGHT or a __X__ TWELVE year (check one) limited property tax
exemption. (If a twelve year exemption, the Owner commits to renting or selling at least twenty
percent (20%) of the multifamily housing units constructed on the site as housing units affordable
for low or moderate-income households as defined by RCW 84.14.020(1)a)(ii)(B)).
7. The Owner agrees, upon completion of the improvements and upon issuance by the City of a
temporary or permanent certificate of occupancy, to file with the City’s Department of
Community Development the following:
(a) A statement of expenditures made with respect to each multi-family housing unit and the
total expenditures made with respect to the entire property;
(b) A description of the completed work and a statement of qualification for the exemption;
and
(c) A statement that the work was completed within the required three (3) year period or any
authorized extension.
(d) If applicable, that the project meets the affordable housing requirements as described in
RCW 84.14.020.
8. The City shall determine whether the Project complies with the requirements for a Final
Certificate of Tax Exemption within thirty (30) days of receipt of all materials required under
Paragraph 7. The City agrees, conditioned on the Owner’s successful completion of the
improvements in accordance with the terms of this Agreement and on the Owner’s filing of the
materials described in Paragraph 7 above, to file an eight or twelve year, as applicable, Final
Certificate of Tax Exemption with the Grant County Assessor within ten (10) days of the City’s
determination that the Project complies with the requirements for a Final Certificate of Tax
Exemption. Any denial of a Final Certificate of Tax Exemption shall be subject to the right of appeal
set forth in MLMC 18.23.050(E).
9. The Owner agrees, within 30 days following the first anniversary of the City’s filing of the Final
Certificate of Tax Exemption and each year thereafter for a period of eight or twelve years, as
applicable, to file a notarized declaration with the City’s Department of Community Development
indicating the following:
(a) A statement of occupancy and vacancy of the multi-family units during the previous twelve
(12) months;
(b) A certification that the property continues to be in compliance with this Agreement; and,
(c) A description of changes or improvements constructed after issuance of the certificate of
tax exemption.
(d) Allow the city staff to conduct an on-site verification of the declaration.
10. The parties acknowledge that the units are to be used and occupied for multifamily residential
use. The parties further acknowledge that the certificate of occupancy issued by the City is for
multifamily residential units. The Owner acknowledges and agrees that the units shall be used
primarily for residential occupancy and any business activities shall only be incidental and ancillary
to the residential occupancy.
11. If the Owner converts to another use any of the new multi-family residential housing units
constructed under this Agreement, the Owner shall notify the Grant County Assessor and the
City’s Department of Community Development within 60 days of such change in use.
12. The Owner agrees to notify the City promptly of any transfer of Owner’s ownership interest
in the Site or in the improvements made to the Site under this Agreement.
13. For purposes of this Agreement, “Owner” shall mean the Owners’ Association of a
condominium complex once such association is established which shall be responsible for all
reporting requirements required herein on behalf of the owners of individual condominium units.
14. The City reserves the right to cancel the Final Certificate of Tax Exemption should the Owner,
its successors and assigns, fail to comply with any of the terms and conditions of this Agreement,
subject to the right of appeal set forth in MLMC 18.23.050(G).
15. Nothing in this Agreement shall permit or be interpreted to permit either party to violate any
provision of Chapter 84.14 RCW or MLMC Chapter 18.23.
16. No modifications of this Agreement shall be made unless mutually agreed upon by the parties
in writing.
17. The Owner acknowledges its awareness of the potential tax liability involved if and when the
property ceases to be eligible for the incentive provided pursuant to this Agreement. Such liability
may include additional real property tax, penalties and interest imposed pursuant to RCW
84.14.110. The Owner further acknowledges its awareness and understanding of the process
implemented by the Grant County Assessor’s Office for the appraisal and assessment of property
taxes. The Owner agrees that the City is not responsible for the property value assessment
imposed by Grant County at any time during the exemption period.
18. In the event that any term or clause of this Agreement conflicts with applicable law, such
conflict shall not affect other terms of this Agreement which can be given effect without the
conflicting term or clause, and to this end, the terms of this Agreement are declared to be
severable.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above
written.
CITY OF MOSES LAKE PROPERTY OWNERS:
_________________________________ ________________________________
John Williams, City Manager By:_____________________________
Its: _____________________________
Approved to Form
__________________________________
Katherine Kenison, City Attorney
Pioneer Meadows
Apts, LLC
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CITY OF MOSES LAKE
STAFF REPORT
To: John Williams, City Manager
From: Fred Snoderly, Municipal Services Director
Date: October 19, 2018
Proceeding Type: New Business
Subject: Farm Lease Agreement for Dunes Treatment Plant Property
Legislative History:
• First Presentation: October 23, 2018
• Second Presentation:
• Requested Action: Motion
Staff Report Summary
Staff has been speaking with a local farmer to lease 120 acres of land adjacent to the Dunes
Treatment Plant. Staff is seeking Council to authorize the City Manager to negotiate said lease.
Background
The City owns land adjacent to the Dunes Treatment plant that is currently native ground. Current
operation of the plant produced approximately 500 tons of biosolids annually that needs to be
hauled and spread on farm ground to make room in our plant for normal operations. This currently
costs the City over $100,00 annually. City would like to develop the ground next to the treatment
plant to reduce costs associated with hauling the biosolids to fields located throughout the county.
The lease agreement would accomplish the following:
1. City would lease approximately 120 acres to the farmer for production of crops.
2. Farmer agrees to take biosolids for use as fertilizer on the fields. Farmer will coordinate
crops, planting and harvest to facilitate this use.
3. City will provide a water source and electrical power to the irrigation pivots.
4. Farmer will provide and maintain the irrigation equipment for use during the lease.
Details on length of lease and who maintains ownership of the equipment at the end of the lease
will be negotiated.
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Fiscal and Policy Implications
City will save money on annual maintenance costs at the treatment plant and generate some
money from the lease. City will expend funds on providing irrigation water and extending power
to the irrigation pivots.
Options
Option Results
• Move to authorize negotiation of the
lease as presented
Lease will be negotiated and brought to
Council for approval.
• Take no action The City will not proceed with the lease and
continue to haul biosolids
Staff Recommendation
Staff recommends City Council authorize the City Manager to negotiate the lease.
Legal Review N-A