Final 2025 0415 Council Special MeetingMoses Lake City Council
Dustin Swartz, Mayor | Judy Madewell, Deputy Mayor | Don Myers, Council Member | Mark Fancher, Council Member
Deanna Martinez, Council Member | David Skaug, Council Member | Victor Lombardi, Council Member
Special Meeting Agenda
Moses Lake Civic Center – 401 S. Balsam
Tuesday, April 15, 2025
Call to Order – 6 p.m.
#1
#2
Urban Growth Area Extraterritorial Agreement Policy Discussion
Community Development Building Division Presentation
Adjournment
Next Special Council Meeting is scheduled for April 18, 2025
Next Regular Council Meeting is scheduled for April 22, 2025
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Extra Territorial Agreement
(ETA) Policy
City Council Ordinance #####/ Resolution ####
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Contents
Preamble.......................................................................................................................................................3
Principles and Requirements for Providing Water and Wastewater Utilities in the Urban Growth Area ...3
Water........................................................................................................................................................3
Wastewater...............................................................................................................................................4
Options for ETA Review and Approval..........................................................................................................5
Appendix A – Option 1..................................................................................................................................7
Appendix B – Option 2................................................................................................................................10
Appendix C – Option 3................................................................................................................................13
Definitions:..................................................................................................................................................15
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Preamble
The City of Moses Lake is the primary purveyor of water and wastewater services within the city
limits and within its water service area which includes the city’s Urban Growth Area (UGA). The
City’s first responsibility is to its existing ratepayers and customers within the city limits. The
City must ensure that existing water and wastewater infrastructure is adequately maintained
and that system capacity for its existing residents and businesses is ensured for the long term.
The city does not hold itself out as the sole water purveyor in the UGA and recognizes that
other water purveyors provide water service within the UGA.
The Growth Management Act encourages growth within city limits and urban growth areas.
The City also encourages growth within the City and the UGA to increase the local housing
inventory and allow for more primary industry employers. Allowing for more housing units to
be built is essential in preventing housing unaffordability and keeping pace with the growing
population. Encouraging and facilitating primary industry lifts and diversifies Moses Lake’s
economy, brings in family-wage jobs, and provides economic mobility for our residents.
Principles and Requirements for Providing Water and Wastewater
Utilities in the Urban Growth Area
To assist with housing and job growth, the City can choose to provide water and wastewater
utilities to new development in the UGA, either through annexation or what is known as extra
territorial utility extension agreements or ETAs. ETAs are contracts through which the City can
choose to provide water and/or wastewater utilities in the UGA without concurrent annexation
and subject to additional conditions of service.
Water
The City recognizes the region’s limitations on and value of potable water. While the City
continues to improve its system capacity through water conservation efforts and the
acquisition of new water sources, providing water for new housing and business development
in the UGA must be done carefully and according to the following primary principles and
requirements:
1. The city water system has sufficient capacity to serve the added development without
causing negative service impacts or disruption to existing customers both within the city
limits and in the UGA.
2.The City will provide potable water only. ETAs and new connections in the UGA will not
allow the use of City water for irrigation. Therefore, before the City will provide potable
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water for new development in the UGA, the developer must adequately demonstrate in
writing and to the City’s satisfaction that they can acquire water for irrigation from a
reliable source. As a condition of the service agreement, the City will acquire the legal
authority to access and inspect the receiving property throughout the term of the
service contract to ensure irrigation is not connected to the City’s potable distribution
system. Violation of this condition shall be enforced pursuant to City ordinance and
shall include the City’s right to terminate water service upon discovery of an
unauthorized connection or a property owner’s refusal to permit City inspection, in
addition to fines and injunctive relief.
3.The City will charge the necessary application fees, system development charges,
connection fees, capacity reservation fees, and rates to recover its long-term costs for
providing water service in the UGA. Developer will pay for the installation of the
necessary infrastructure to reach their development and provide service – this may
include, but is not limited to, main lines, lateral lines, service lines, storage, system
upgrades/upsizing, and all associated service connections. Infrastructure requirements
are dependent upon the development proposed and may be onsite or offsite– City staff
will identify the needed improvements based on plans submitted for review. Failure to
supply sufficient plans may result in a delay in determination of required improvements.
City may, at its sole discretion, conduct a rate study to adequately determine the cost of
providing water in the UGA at the sole cost of the developer.
4. Property owner shall agree to grant the City power of attorney on its behalf to sign an
annexation petition for the UGA properties being served, should annexation be
considered in the future.
5. Limited Connection Window – as part of the application for service, the property owner
must pay any required fees, rates, and costs as established by the City including a non-
refundable capacity reservation fee, execute an ETA, and comply with the terms of the
ETA which shall establish a deadline for connection to the City potable water system for
the allocated and reserved Equivalent Residential Units (ERUs). Failure to meet that
deadline will result in termination of the ETA and capacity reservation and any
letter(s)/certificate(s) of water availability will be rescinded. All fees paid by property
owner are non-refundable.
Wastewater
1. The wastewater system must have sufficient capacity to serve the added development
without causing service negative service impacts or disruption to existing customers
both within the city limits and in the UGA.
2. The City will charge the necessary system development charges, connection fees, and
rates to recover its costs for providing wastewater service in the UGA. Developer will
pay for the installation of the necessary infrastructure to reach their development and
provide service – this may include, but is not limited to, mains lines, lateral lines, lift
stations, service lines, system upgrades/upsizing, and all associated service connections.
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Infrastructure requirements are dependent upon the development proposed and may
be onsite or offsite – City staff will identify the needed improvements based on plans
submitted for review. Failure to supply sufficient plans may result in a delay in
determination of requirement improvements. City may, at its sole discretion, conduct a
rate study to adequately determine the cost of providing wastewater service in the UGA
at the sole cost of the developer.
3. Property owner shall agree to grant the City power of attorney on its behalf to sign an
annexation petition for the UGA properties being served, should annexation be
considered in the future.
4. Limited Connection Window – as part of the application for service, the property owner
must pay any required fees, rates, and costs as established by the City including a non-
refundable capacity reservation fee, execute an ETA, and comply with the terms of the
ETA which shall establish a deadline for connection to the City wastewater system for
the allocated and reserved ERUs. Failure to meet that deadline will result in termination
of the ETA and capacity reservation and any letter(s)/certificate(s) of wastewater
availability will be rescinded. All fees paid by the property owner are non-refundable.
Options for ETA Review and Approval
Staff recommends that the City Council consider the following frameworks for review and
approval of ETA applications.
In all instances, staff recommend that each year the following deadlines apply:
Annual Deadline Action/Item Due
September 15 System models are updated and available ERUs are provided to
City Council
November 1 ETA applications for the following year are due.
First City Council
Meeting in December
(but no later than
December 15)
Staff will bring forward to Council all applications for
approval/denial
January of the Following
Year
Construction Management will execute ETA with property
owner(s) for approved applications.
Community Development will begin Developer Agreement
negotiations (if applicable)
In the UGA the permitting authority is Grant County – not the City of Moses Lake – making it
more difficult to monitor and ensure fees are paid prior to construction beginning. As such,
staff recommend that ETA applications require payment of all associated fees (i.e. connection
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charges, system development charges, capacity reservation fees, etc.) as outlined in the policy
at the time of ETA application.
Additionally, staff support City Manager approval authority for any ETA application that is
accompanied by a Grant County Health District public health emergency hookup request and
proposed connection is within 660 feet of an existing main line. For any connection that
requires extension of infrastructure to provide service, that cost is the sole responsibility of the
applicant.
The options for how to allocate and approve ETAs in the UGA are as follows:
1) Tiered Evaluation Structure –See Appendix A
2) ERU Allocation by Council Legislative Action –See Appendix B
x Key Points:
o Available ERUs can/may vary from year to year.
o To prevent allocation from appearing as arbitrary and capricious a
decision framework is highly recommended.
3) Lottery Allocation –See Appendix C
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Appendix A – Option 1
ETA Tiered Evaluation
Step 1 – Application:
The applicant formally makes a request for City Water and/or Sewer for specified parcels
outside of the corporate limits by a letter from the property owner(s) to the Public Works
Director. The letter shall include a narrative and conceptual site plan that describes the
numbers of residential units to be served, commercial uses to be served, or industrial process
volumes and fire flows to be served. The applicant shall include all materials as defined in
Resolution #3717 or applicable city ordinance.
Step 2 – Evaluation:
Staff reviews the formal requests and processes per the following criteria:
CLASSIFICATION DESCRIPTION
CLASS 0
IN/ABUTTING CITY
LIMITS
The parcel(s) are contiguous (touching/abutting) to existing corporate limits of
the City. Water and/or sewer mains have already been extended to the area
and tapping into the main by a lateral is all that is required for connection.
These requests for Water and Sewer will require annexation as part of service.
Irrigation by means other than City potable water is preferred. No ETA to be
issued. The only exception is if the application is accompanied by a Grant
County Health District public health emergency hookup request.
CLASS 1
PUBLIC HEALTH The parcel(s) are not contiguous to existing corporate limits of the City.
However, the application is accompanied by a State or Local agency public
health emergency hookup request. Water and/or sewer mains have already
been extended to the area and tapping into the main by a lateral is all that is
required for connection. Irrigation by means other than City potable water is
required.
Residential Lot Example:An existing home in the UGA has water from a well
and a septic system. The existing septic system fails, and the Department of
Health declares it a public health emergency and refers them to the City to
connect. There is an existing main along the frontage of the property and the
resident can tap into the main for their service line.
CLASS 2
SHORT EXTENSION The parcel(s) are not contiguous to existing corporate limits of the City.
However, the parcel(s) have a short, developer provided, Water extension,
Sewer extension, and/or Reservoir Placement, with extensions of 0-660FT (1/8
mile) to connection point, with no pressure or fire flow capacity issues.
Consideration shall be given if parcels are touching or abutting other parcels
that are contiguous to existing corporate limits but not yet annexed and
developer can secure commitment by those parcel(s) to annex to the City,
thereby rendering this a Class 0 application. Irrigation by means other than City
potable water is required.
Residential Lot Example:New house in UGA has City water main on their
frontage street and they are requesting water service. An existing home with a
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failing septic system, has sewer main on their frontage street and they are
requesting sewer service. Property owner/developer will be required to
complete main extension to their property and install service line at their sole
cost.
CLASS 3
PREVIOUS ETA
The parcel(s) are not contiguous to existing corporate limits of the City.
However, the parcel(s) have had a previous Council approved ETA or
commitment that has since expired, and the proposed development has had no
substantial changes. Replats or changes in the number of service connections
will require a new ETA be submitted to, and approved by, City Council.
CLASS 4
COST/SERVICE
BENEFIT
The parcel(s) are not contiguous to existing corporate limits of the City.
However, proposed development further the goal of increased housing and/or
employment. Consideration shall be given if parcels are touching or abutting
other parcels that are contiguous to existing corporate limits but not yet
annexed and developer can secure commitment by those parcel(s) to annex to
the City, thereby rendering this a Class 0 application. As per the principles and
requirements outlined in this policy, a long-term City cost-benefit analysis
(including water rights transfer or fee in lieu of for the service being provided)
shall be completed at developer’s expense prior to application approval. Rate
and charges will reflect the actual cost of service to far flung areas. Irrigation by
means other than City potable water is required.
Step 3 – Staff Processing:
The applicant will complete the ETA application by providing materials as defined in Resolution
#3717 and any applicable ordinance, Extra Territorial Agreement Form, and this ETA Policy.
Staff will review the application and prepare a Staff Report which includes a narrative analysis,
proposed conditions of approval, and type of recommendation to the Council. The ETA
application will be presented to Council for action/consideration.
Step 4 – Council Action:
Council reviews the Staff Report and associated application materials for approval
consideration of the Extra Territorial Agreement presented.
Step 5A – ETA Not Processed:
If the City Council denies the application, staff will inform the applicant of the denial and take
no further action.
Step 5B – ETA Finalization:
With Council approval, the applicant shall pay all required fees and staff will prepare the ETA
forms, along with any conditions of approval, for the City Manager and property owner(s)
signatures. The ETA will then be recorded with Grant County and the corresponding covenant
will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must
return the signed ETA to Construction Management within 45 days of the date of Council ETA
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approval. Failure to return by deadline will result in loss of allocated ERUs unless the applicant
has obtained Council approval for an extension.
ETA Inaction and Returns:
The terms of the ETA must be met , through service connection and/or meter installation,
within 2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA
shall be returned to the landowner and the City will record a release of the covenant.
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Appendix B – Option 2
ERU Allocation by City Council Legislative Action
This method of ERU allocation relies on our system models. The system models utilize the data
from our installed infrastructure to estimate and evaluate the effects of new development. The
estimates do not guarantee fire flow or available source and cannot be construed as a
guarantee. Our model will require annual, ongoing, maintenance as new sources are brought
online, new infrastructure installed, and environmental conditions fluctuate to ensure ERU
allocation in the UGA does not put the City at risk of service disruption to existing customers
both inside the city limits and in the UGA.
A new “available” ERU allocation will be provided to Council annually. The average number of
annual connections in the UGA from 2020-2024 is 21, which is 7.26% of total new connections
(both within city limits and in the UGA) during the same time frame. Staff recommend
allocating no more than 10% of annual total connections to the UGA to ensure our legal
obligation to serve new development within City limits is secure. For example, if ERU allocation
is projected at 275 ERUs for the following year, recommended allocation to UGA parcels would
be 27 ERUs. Consideration will need to be given for number of ERUs based on type of
development – one single family residential unit is equivalent to 1 ERU, but a single industrial or
commercial development may account for many ERUs.
If/when more sources or capacity becomes available, the City, through its modeling, will
recalculate annual allowed new connections in the UGA.
Step 1 – Application:
The applicant formally makes a request for City Water and/or Sewer for specified parcels
outside of the corporate limits by a letter from the property owner(s) to the Public Works
Director. The letter shall include a narrative and conceptual site plan that describes the
numbers of residential units to be served, commercial uses to be served, or industrial process
volumes and fire flows to be served. The applicant shall include all materials as defined in
Resolution #3717 or applicable city ordinance.
Step 2 – Staff Processing:
Staff review application based on Principles and Requirements for Providing Water and Wastewater
Utilities in the Urban Growth Area previously identified in the policy, addressing system capacity
concerns (if any), fees required, and questions/concerns/comments pertaining to the specific
application. A summary report is created to be provided to Council with the application for
consideration of ERU allocation – which includes narrative analysis, proposed conditions of
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approval, and staff recommended action. This summary report will be presented to council in a
manner that blinds specific details to reduce the risk of any perception of bias entering into the
Council determination.
Step 3 – Council Action:
Staff will bring forward all ETA applications for the City Council to consider. Council reviews the
Staff summary reports and associated application materials for approval consideration of the
Extra Territorial Agreement presented.
When assigning ERUs to a proposed development, the City Council will consider reasonable
criteria such as:
x Distance from the City limits,
x Distance from existing water/sewer infrastructure,
x Impact on City services and road network,
x Percentage of available capacity to be used by the development,
x Council’s determined need for certain types of development to meet the needs of the
City. For example, Council may give higher priority for a proposed development that
includes primary industry that diversifies the City’s employment. As another example,
the City Council may place a higher priority on housing types that are needed to keep
pace with job and population growth.
x Consistency with the City’s Comprehensive Plan, Water System Plan, Sewer System Plan,
and other relevant long term planning documents.
Step 4a – ETA Not Processed:
If City Council denies, staff will notify the application of the denial and take no further action.
Step 4b – ETA Approved:
With council approval, the applicant shall pay all required fees and staff will prepare the ETA
forms, along with any conditions of approval, for the City Manager and property owner(s)
signatures. The ETA will then be recorded with Grant County and the corresponding covenant
will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must
return the signed ETA to Construction Management within 45 days of the date of Council ETA
approval. Failure to return by deadline will result in loss of allocated ERUs unless the applicant
has obtained Council approval for an extension.
ETA Inaction and Returns:
The terms of the ETA must be met, through service connection and/or meter installation, within
2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA shall
be returned to the landowner and the City will record a release of the covenant. The ERUs will
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become eligible for use on other developments in the current year within city limits or the
following year for UGA allocation.
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Appendix C – Option 3
Lottery Allocation
This method of ERU allocation relies heavily on our system models. The system models utilize
the data from our installed infrastructure to estimate and evaluate the effects of new
development. The estimates do not guarantee fire flow or available source and cannot be
construed as a guarantee. Our model will require annual, ongoing, maintenance as new sources
are brought online, new infrastructure installed, and environmental conditions fluctuate to
ensure ERU allocation in the UGA does not put the City at risk of service disruption to existing
customers both inside the city limits and in the UGA.
A new “available” ERU allocation will be provided to Council annually. The average number of
annual connections in the UGA from 2020-2024 is 21, which is 7.26% of total connections
during the same time frame. Staff recommend allocating no more than 10% of annual total
connections to the UGA to ensure our legal obligation to serve new development within City
limits is secure. For example, ERU allocation is projected at 275 ERUs for 2024, recommended
allocation to UGA parcels would be 27 ERUs. Consideration will need to be given for number of
ERUs based on type of development – one single family residential unit is equivalent to 1 ERU,
but a proposed industrial or commercial development may account for 50 ERUs.
Step 1 – Application:
The applicant formally makes a request for City Water and/or Sewer for specified parcels
outside of the corporate limits by a letter from the property owner(s) to the Public Works
Director. The letter shall include a narrative and conceptual site plan that describes the
numbers of residential units to be served, commercial uses to be served, or industrial process
volumes and fire flows to be served. The applicant shall include all materials as defined in
Resolution #3717 or applicable city ordinance.
Step 2 – Staff Processing:
Staff review application based on Principles and Requirements for Providing Water and Wastewater
Utilities in the Urban Growth Area previously identified in the policy, addressing system capacity
concerns (if any), fees required, and questions/concerns/comments pertaining to the specific
application. A summary report is created to be provided to Council with the application for
consideration of ERU allocation – which includes narrative analysis, proposed conditions of
approval, and staff recommended action. This summary report will be presented to council in a
manner that blinds specific details to reduce the risk of any perception of bias entering into the
Council determination.
FOR COUNCIL CONSIDERATION:
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Would you like applications sorted into categories and then the lottery drawings to occur for
each category individually? For example, developments of fewer than 5 ERUs, 5-10 ERUs, 10-
20 ERUs? SFR, multifamily, commercial, industrial? If so, how would you like to allocate the
ERUs available to each category? Or would you like to evaluate the number of applications in
each category, determine the number to allocate to each, then have staff complete the lottery
drawing?
Step 3 – Lottery Allocation/Council Action:
Staff take the blinded applications and enter the application numbers into a random lottery for
allocation of up to 5 ERUs. If an application drawn is requesting less than 5 ERUs, the remaining
ERUs will be left in the pool for allocation and additional applications will be drawn until the
annual allotment is fully dispersed.
The lottery results, the drawn application summary reports, and associated materials will be
presented to City Council for approval of the Extra Territorial Agreement(s).
Step 4 – ETA(s) Approved:
With council approval, the applicant shall pay all required fees and staff will prepare the ETA
forms, along with any conditions of approval, for the City Manager and property owner(s)
signatures. The ETA will then be recorded with Grant County and the corresponding covenant
will run with the land in perpetuity unless otherwise lawfully terminated. Applicant must
return the signed ETA to Construction Management within 45 days of the date of Council ETA
approval. Failure to return by deadline will result in loss of allocated ERUs unless the applicant
has obtained Council approval for an extension.
ETA Inaction and Returns:
The terms of the ETA must be met, through service connection and/or meter installation, within
2 years of recording or it terminates pursuant to Resolution #3717. The terminated ETA shall
be returned to the landowner and the City will record a release of the covenant. The ERUs will
become eligible for use on other developments in the current year within city limits or the
following year for UGA allocation.
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Definitions:
Application Number – a number assigned by the City’s portal system. This identifier allows for
applications to be referenced without providing full developer/development name.
Development – any proposed plat, subdivision, binding site plan, or building permit request for
single family residential, multifamily, commercial, or industrial uses.
Equivalent Residential Units (ERU) – one ERU represents the amount of water used by one
single-family residence for a specific water system. The demand of other customer classes can
be expressed in terms of ERUs by dividing the demand of each of the other customer classes by
the demand represented by one ERU.
Lateral – branch line extended off of main line to serve more than one single-family residence.
Potable Water – water that is safe for consumption and meets state and federal standards; can
come from surface or ground sources and is treated for various contaminants.
Property Owner – means the property owner(s) and its authorized legal representative(s).
Service Connection – service connections create a potential for service and do not necessarily
result in immediate meter installation; service connections are typically one per single family
residence or multifamily unit.
Supply – water that is delivered to a water system by one or more supply facilities that may
consist of supply stations, booster bump stations, and wells.
Storage – water that is “stored” in a reservoir to supplement the supply facilities of a system
and provides water supply for emergency conditions.
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