HomeMy WebLinkAbout07/12/1988 Adjourned Meeting 396
ADJOURNED MEETING
JULY 12, 1988
• r _ .
1. ROLL CALL
The .City Council met in session ' on- this date at-7: P.M. in
the Council' Chambers of - City '- Hall, - for -the purpose of
conducting:a public hearing on the - Financing-' Plan for the
Wastewater Facilities Comprehensive Capital:-Improvement Plan.
Council members present were Mayor Pat Berndt, presiding,
Clarence- Barnett•, . Lynn Buchanan,- Lynn - Carmichael, -- Jerry Foy
and Bernard Sims. City Manager Dick' Zai's, -City Attorney John
Vanek, -- 'Assistant City-Manager Fred Stouder, 'Pro'cess Control
. Supervisor Bruce .Bates, and Acting 'City Clerk Barbara Toney
were also present: Council •member - Henry' Beauchamp absent and
ex -cused
2. PUBLIGL '--HEARI-NG ON -THE -FINANCING PLAN FOR WASTEWATER
FACILITIES- COMPREHENSIVE CAPITAL IMPROVEMENT PLAN
Mayor Berndt stated the purpose -of this conduct
•a• `-Public Hearing on the FinancingPlan -'for ° 'the '`Wastewater
Facilities Comprehensive - Capital Improvement Plan At the
request of Mayor Berndt, Assistant City Manager Stouder made
introductory remarks regarding the history of the'_-Plan and
added that Bruce Bates will give the overhead and slide
presentation on the Wastewater Facility: Mr. Stouder stated
staff is in the final stages of reviewing and adopting
the first Comprehensive Sewer Plan prepared by the City since
the middle of 1970 -'s. He said in 1976 the City developed
a facilities }plan which led 'towards' the improvement and
construction• of the -current Wastewater Facility which
provides service to the-City- and to the Urban -Area':.. He added
the purpose of -'this facility is -to ' ensure that the citizens
have clean water, and.that it returns to the Yakima in
a.• clean ' state. Mr. Stouder-explained the purpose of the
secondar-y treatment 'plant is to provide-the. purification and •
treatment necessary -so that the water returned plant
to the Yakima River is safe and can be used by businesses and
residences downstream, and also to..prevent interruption of
the •fish and animal life that are dependent upon' the river.'
He stated this plan represents a major effort of the last
three years, planning for the facility to the year 2025.
The Financing Plan addresses improvements needed to-the year
2000-.'As a result of the planning process the community is
facing 27 million improvements - to 'the' Regional
Wastewater Facility. Mr. Stouder pointed out that 20 million
dollars of that 27 million dollar figure has been identified
_as. State and-_ Federal_ .mandates -to _keep the-Plant in compliance
with the rules and regulations and to ensure that water
discharged from the Plant, after use by the Community, is
returned \'`,to the ., River in a clean state. He stated
• .development'.of 'tlid P1anbegan'..in. the fall of 1985 and staff
is now in the final' months of review. He stated all of the
recent activities are compelled by the following five items:
1) Federal and State mandates,, 2) maintenance of the
faci.lities,. 3 )...a__decline in federal . fundingfrom %. - to 55%
matching funds, 4) a prudent concern for health and safety to
the community and 5) a concern for missed economic
development opportunities for industry to locate in Yakima.
He reiterated the purpose of this meeting is to hear comments
from the public on the Financing Plan, adding that Bruce
Bates will narrate an overhead projection presentation and a
video presentation of the facilities and the system.
Bruce Bates, Process Control Supervisor, re- emphasized this
has been a three year process for water, sewer and
irrigation systems in the City of 'Yakima. He stated
his presentation will be based on the sewer issue and
proceeded to narrate the overhead and video presentation.
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ADJOURNED MEETING - JULY 12, 1988
The first` overhead •illustrated the water utilization
throughout the City of Yakima. He stated the Water_;Treatment
Plant: is designed to handle about 20 .million gallons of
Water a day but presently treats about 12. million gallons
per day. He stated this water goes through' the City's water
distribution system and about 3 to 4 million gallons are
• either consumed or lost. He stated the irrigation system
• distributes about 51 million gallons of water per day of
which 29 -31 million gallons per day are consumed and about
20 -25 million gallons of day are lost into ground water. He
stated of that amount lost into ground water, about 4 -6
million gallons per day infiltrates into the sewer system.
He pointed out that the wastewater facility is a regional
facility which also treats wastewater from Union Gap and
Terrace Heights as well as the City of Yakima. He then
reviewed' Table II; which shows the past ten years: sewer rates
and increases.as follows: '10 /9/78 the-ready to serve rate
was $2.00, on 12/1/81 it was increased to $3.23, on 12/21/82
• it was increased to $4.17, on 6/11/83 it was: increased to
$4.23' and the proposed increase for 1/1/89 is $4.94. Next,
Mr. Bates reviewed the City Engineer's - Association of
Washington 1988 Utility Rate Survey'Listing by Single Family
Sewer Rate which shows an overview of about 45 cities in the
State of Washington and their present sewer He stated
the maximum rate is $26.09, the minimum rate is $4.92 and
the average rate is $14.49, and Yakima's current- rate is
$11.76. He. stated the fluctuation in rates has to do with
the size of the city, the complexity of the Treatment Plant,
and State and Federal .mandates pertaining to the level of
treatment required of the - individual wastewater facilities.
• He explained that the City of Yakima is considered an advance
• Wastewater Treatment .Plant and must achieve close. to tertiary
' - treatment,- remove nutrients from the wastewater in the form
• of ammonia and this accounts for some of the expense in
operating the facility. He stated :many of the plants listed
on the utility rate survey are older .plants which .do not
remove as much of the pollutants as Yakima's Treatment Plant,
therefore, are cheaper to operate.
•
Mr. Bates distributed another •handout describing the funding
sources and activities from the draft Sewer Comprehensive
Plan.. He reviewed the Executive Summary Chart I listing the
'• recommended activity that needs to take place•over the next
eight years at•the Wastewater Treatment facility and in the
-.collection system. He distributed pictures illustrating some
- •'of the problems experienced on a daily basis. at the
Wastewater Facility and in the sewer lines.. He indicated
staff removes over 8 tons of grease. and rags..from the
collection system on a weekly basis, and this is quite an
• expensive operation. He stated in the last 50 years there
has been over 280 miles of sewer lines built throughout the
City and only 5% of those lines have any rehabilitation work
done on them. The Treatment Plant has undergone numerous
expansions and rehabilitation, however, the collection system
has not, and stated a large portion of the funding needed is
for the 'rehabilitation of the collection system.
Mr. Bates reviewed.Executive Chart II showing the short term
•• rate adjustment options available, commenting City staff is
• recommending Option Four which is the implementation of a 16%
General rate increase in 1988 and 1989, a 96% Outside Utility
• Surcharge, septage rate increase and -use .of. operating
• reserves. (The 96% surcharge increase is equivalent to an
additional 5.4% general rate increase.) • =-
Mr. Bates stated Executive Summary Chart III describes the
five year rate impact from implementation of the Sewer
• Comprehensive Plan. He stated staff. ..recommends
implementation of Proposal One, a 16 %- increase in 1988, 16%
in'1989 and an additional 8.7% in 1992, .resulting in a
cumulative increase of 46.3% over ' the next _five °year period.
•
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ADJOURNED MEETING - JULY 12, 1988
A video presentation followed illustrating some of the
obstructions that have been observed in the collections
system. Various obstructions were tree roots, rocks in the
sewer line, accumulation of grease in the lines, infiltration
into the lines, sewer hook -ups that were improperly made,
breaks in the lines, and off -set joints. He showed a picture
of the current facility with some of the expensive equipment
used to maintain the limes being stored outside the
buildings in the elements due to lack of storage space. Mr.
Bates stated there is a lack of room for the •present staff
of 46 personnel at this location, so there is a
recommendation to expand the facility or relocate ,the sewer
maintenance crew. This concluded his presentation.
Assistant City Manager Stouder stated the Community has
approximately 55 million dollars already invested in the
facility, almost 90 • million dollars invested in the
collection system, for a total investment of. 150 million
dollars. He added the Comprehensive Plan and the 27 million
dollars .worth of improvements to the system are „ways to
protect that investment and ensure that the 150 million
dollar investment is here in the future to serve all of the
residents.
Mayor Berndt opened the public hearing at this time and asked
those desiring to speak to please give their name and
address for the official record and limit their comments to
2 -5 minutes.
Former Council member, W. K. "Pete” Moore, 1114 South 28th
Avenue, stated he has some questions and comments regarding
the Financing Plan and began by asking about the status of
the law suit . involving the Wastewater Treatment Plant. City
Manager Zais stated ithe City is engaged in litigation with
Philadelphia Gear with legal representation by the law firm
of Preston Thorgrimson. The litigation concerns the
aeration system which is being replaced at this time. He
stated the case is now in the discovery proceedings and
depositions are scheduled to be taken next month.
Mr. Zais stated the Council has been briefed on the status of
the litigation a number of times by legal counsel and experts
that•have been retained by both sides, however, this is a
protracted process and it will be next year before the City
will know if we are prepared for trial. Mr. Moore stated he
was a Council member when the government made the,decision to
make the Treatment Plant a.Regional facility and conducted a
study to reach that determination. He stated he is "getting
sick and tired of studies and surveys and all of this junk
that goes on that you spend the taxpayer's money on and we
get very damn little benefit from." He stated the City
spent 35 million dollars to build a sewage treatment plant
that was to perform at 85% of elimination of biochemical
oxygen demand (BOD's) to return the water to the Yakima
River 85% clarity. Mr. Moore said when .the problem of
tertiary treatment was first discussed with the. Department of
Ecology (DOE) the City was told. that we must bring the
Treatment Plant up to 85% of clarity and inquired if that has -
been achieved. Mayor Berndt responded affirmatively. Mr.
Moore spoke about the infiltration into the sewer lines, and
said part of the 1.8 million dollar contract, that was let
was to rebuild the Sewage Treatment Plant was to repair the
sewer lines. Mr. Moore stated the infiltration problem
cannot be entirely eliminated from the system due to the tree
roots growing into the lines. He added the only way to
accomplish that would be to remove all of the trees and that •
is not a feasible solution. He commented he is "very much
concerned that we are talking about some things in the
rebuilding of this sewage treatment that are costing a bundle
of money and not accomplishing a whale of a lot." He. stated
we have a Sewage Treatment Plant that has four clarifiers
with-7.5 million gallon capacity each and this is the peak
capacity of the Sewage Treatment Plant. Mr. Moore stated we
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ADJOURNED MEETING - JULY 12, 1988
. r' - have _had those clarifiers • -for a number of years so we have
not — increased capacity; we have in fact minimized the flow
' ' • insta•llation ' of the diversion. boxes. He stated "the
- City spent 35 million dollars to build a- Sewage' Treatment
`Plant that' was originally supposed to cost' 18 million
dollars; and didn't get the sewage lines 'rebuilt, but we
built a Sewage Treatment Plant that isn't'a heck -of a lot.
-
more efficient than the one we had."' He' stated that is a
'basic fact and he would like' to have somebody - refute it. He
stated the City is going to spend 27 million dollars to
rebuild a 35 million plant, a 150 million plant altogether.
••He stated another 27 million dollars is not going to solve
all of the Plant's problems':" He stated the report also
- "talk's about the need for additional - Space . for . staff and
I/ pointed out'that when the plant was rebuilt they tore down a
-garage that would have housed all the equipment that now
•sits, outside in•the elements year- round. The administration
-- building was remodeled into a larger building to -meet their
needs at that time and a laboratory ' was added. He-Stated he
does not think we need to add staff'to run the laboratory.
He commented'other municipalities are not doing.it; why do we
have to? Mayor Berndt stated that is part: of the mandated
costs that are involved and additional staffing is required
' to perform the tests which must be run on a daily basis. Mr.
Bates stated they. perform about' 500 tests a day-and are also
mandated to monitor all of the industrial waste now to check
for toxic chemicals. Council member-Carmichael reminded Mr.
Moore that he was a Council member'when the state and federal
government brought forth mandates regarding what-must._be done
' to operate a regional facility.- Mrs. Carmichael stated more
state and- federal mandates have come' about since that time.
Mr. Moore stated he not buy'all - -of "'that because the City
does not have any greater`operation than it had before. He
stated the' is a little concerned- that 'this' facility is
'becoming a Rolls Royce operation and he believes it is time
the Council buckle down t� the necessity of, looking after the
' little person that can't afford- the additional taxes time
-,after time. - He ' Stated it is time . Council - said to staff,
• "now,- hold it." He 'stated we are headed for disaster as far
as he is concerned and he feels it is ' time -to say no to the
-Department • of: Ecology and the Environmental Protection
Agency. He concluded• his comments stating, "there are
problems that will never . be" resolved such as the grease in
-the lines and °the infiltration problems, -and additional staff
is not the answer." • •' -
`- Keith-Daniels, South 76th'Avenue,'representing the Yakima
`Board of - Realtors, asked in this funding projection, has the
` Real Estate Transfer Tax of'1 /4 of one percent 'mantes been
' ;shown as part of the monies being improvements to
the water" and sewer systems and is it' a part-of the
- projection •of'the 16 %•rate increase? Assistant City Manager
• Stotider 'stated to date' there-have -been nb -federal or state
funds scheduled to be used in the Financing Plan. He added
- the Financial "Plan - ' assumes that all funds needed to =rebuild,
_ expand or - rehabilitate - and maintain C -the facility-Will come
. from local - '-government. He said the real estate. transfer
' tax is committed to repaying' Public Works.•Trust Fund
applications, which is a --state-funding source, and about
three•months ago-the City'received $940,000for improvements
to r the sewage system -and the real - •estate''transfer 'tax will
be used to pay off that 20 year 1% loan. However, that is
not - calculated into the.. Financing- Plan.` Mr. Stouder
explained the City has used the. annual-sum-from the
• real estate 'transfer tax to leverage additional' state funds
to secure' larger long' term low •interest loans for
' improvements to-the system.''He stated the bottom line is
' that none of 1/4% • tax' is - figured into 'the rate study or the
' ' Financing Plan and assumes complete local support without
the use of any- other - taxes. Mr Daniels. asked-why Council
designated $200,-000 from the • Real Estate Transfer Tax to be
used to cover a canal-_ditch that runs through the Chesterley
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ADJOURNED MEETING - JULY 12, 1988
Park project if none of these _monies are being used on a
local basis. Mr. Stouder contended that the, action taken
earlier today by the City Council to cover the canal that
runs through the, Chesterley Park project is consistent with
the purpose of the Public Works Trust Fund and the Real
Estate Excise Tax. He explained further that the Real Estate
Excise Tax..is pledged against applications or additional
funding coming from the state. He said the ditch covering is
part of the City's irrigation water system and the
application being submitted .is a water system application,
_ not a parks application. He stated parks applications are
not eligible projects for the Public Works Trust Fund. Mr.
, Stouder said no portion of funding for the Chesterley Park
project is directly _being applied for from the Public Works
Trust Fund. The issue discussed and acted upon today by the
City Council is part of the irrigation system. and 'it was
, pointed out this .afternoon that this, will help with the
• inflow and infiltration problem, into the wastewater and water
systems. Mr. Daniels stated it is his interpretation that
not enough money was requested in the bond issue for the
Chesterley Park Project cover the canal, therefore, the
Council decided to use the Real Estate Transfer Tax for this
purpose. Council member Carmichael •stated it wasn't
•- determined that. the ditch needed to be covered until
• recently, therefore, it had not been, included in the bond
issue. Mrs. Carmichael stated since this canal is part of
the City's irrigation system, 'Council decided the use the
Real Estate_.Transfer Tax to fund the covering of the,canal is
justifiable.. Mr. Daniels stated the only comment he has
regarding the Real Estate Transfer Tax is that this Council
made a promise that the 1/4% Real Estate Transfer Tax was to
be used for infrastructure, not for capital needs; it was to
be used for the development_ and improvement of drainage
systems within the City. He stated the Board of Realtors
feel Council has disregarded the promise to maintain those
funds. for which they were requested to be-used. He stated
the Board of Realtors would like the record to indicate they
do not feel those monies are being used properly. Mr.
Daniels then referred to the revenue to be generated from
the 16% rate increase and asked when can Council dive into
those funds for uses other than what they are intended?
Mayor Berndt stated users fees are applied solely to the area
, •
in which they are received. Mr., Stouder stated the ditch
- covering application is a water system application and not a
parks application. He stated the City is applying to the
State Department of Community & Economic Development Public
Works Trust Fund for monies to cover the ditch. He said
the long term loan had a more favorable rate than the City
could obtain elsewhere and will be paid back from the Real
Estate Excise Tax. He added it is not a parks application
but rather a water system application. He stated the City
could not submit any improvements for Chesterley. Park to the
Public Works Trust Fund. He said they have not violated the
sense of trust that was placed in the Council.by the, Board of
Realtors. Council member Foy interjected that. in the past
three years the Council has not earmarked, funds for covering
any other canals or ditches, and it is his belief that the -
Chesterley Park development triggered this .action. Mr.
•
Daniels stated he does not wish to take any more time to
discuss this issue, but would like the complaint registered
in the recording of the minutes of this public hearing.
Mike Mallinger, 205 South 69th Avenue, stated he lives
outside the City limits by four blocks and expressed
appreciation to the City for making it possible for working
citizens to participate in this public hearing by scheduling
it in the evening. He indicated he is unhappy with the 96%
surcharge for the county residents and questioned why county
residents should be paying the Capital Cost Recovery Charge
in the first place. Budget Analyst Chuck Greenough responded
there has been no change in the City's policy of the 50%
surcharge in the last twenty years. He stated the County
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ADJOURNED MEETING - JULY 12,1988
resident i.s..charged on the basis of the utility'similar to
the way charges are derived by Pacific Power and Light,
. Pacific .Northwest Bell, Cascade. Natural - Gas, etc. He
.explained that this is based on the. operating cost,
depreciation and return on investment.. He further explained
. •that City.. customer charges are based on the actual cost
requiredhto operate the system; those.costs include capital
cost,, principal _retirement on the debt, etc. He stated the
.basic .difference is that County residents pay on the utility
.basis _ and the City residents pay on : the. ••actual cost to
.operate the system. He said the rate study points out that
as_..the debt decreases and the number of customers outside the
city increases, the surcharge•will decrease accordingly. He
stated the 'CCRC recoups the cost. to install a line in a
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specific: area or .residential .development• outside •the City
limits. Mr. t Greenough stated the City's investment to
install the interceptor and trunk lines outside the City •
limits has been, reduced by monies collected through the
Capital: Cost Recovery Charge (CCRC). Mr. Mallinger asked
.how long will the County residents have to pay the City the
surcharge: and Council member Carmichael -responded until
. • annexation occurs. Mr. Mallinger stated he is willing to
. .,annex but he; cannot speak for other residents involved in the
recent L.I.D. . for his area. He stated it was made clear to
him at the time the•L.I.D._ was•formed that his area would be
_ annexed when the,City deemed annexation necessary. He stated
.
he is not •.opposed to paying the .amount the City residents
.pay, 'however, he feels the 96% surcharge is unfair and
• excessive. He. stated this seems to be •taxatiom without
representation and added if the 96% goes into effect he will
. r encourage. City.r.esidents to vote .against.the.Council.members
. at election ,time
. • .
Council member Buchanan stated he .appreciates the sentiments
of Mr. .Mallinger _as he has sat on. the Council for almost ten
. yea.rs.:.now and has heard: County residents say they swant the
servicesoffere.d by .the City, however, they do not want to be
annexed. .. _,
Leonard Sherry,. 204 South. 69th .Avenue; stated he was at the
'June 7th meeting and asked about the interest charged on the
CCRC payment. He said in 1986 he paid over $300..in interest
. that had accumulated and now, two more years of interest has
accumulated on the CCRC. He stated if a citizen connects ten
years from now they will have to.,,pay..all of the interest that
has accumulated since the sewer lines :were installed and he
. .does not think ._this is fair .because this was never
explained tothim .by staff during, the formation process for
the L.T.D. He said he objects to adding - 45% more to the
current 50% surcharge they already pay and pointed out that
. many, of the .County residents.. were . once City _residents,
• • therefore, . have paid City taxes for many. years prior to
moving to. : the. County. .
Betty ..Gaudette, 701 North 6th Street, -asked when the actual
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Comprehensive Sewer .Plan was started and when. was it
completed?. .City Manager Zais stated._the 1972 Clean Water Act
established _the standards, cri•teri.a and mandates placed on
the City for updating the Sewer Treatment Plant. The City
was.. mandated by DOE and EPA to regionalize the Plant.and this
began the planning process which.lead to.the.issuance of the
first contract in 1.978, . with the project being completed in
1983. except for_ the aeration problem _that had to be
.• redesigned and rebuilt. Mrs. Gaudette stated she_ is irate
• to. think that five years after_the completion of the Plant,
we must begin the process over again. Council member Barnett
interjected that ,several weeks ago he came.up.with a figure
that indicated .8 or -9 million dollars of additional
. • requirements have been added.to the .project by DOE and EPA
since the Plant was constructed.;-He referred to .a.document
provided by staff which indicates of the total 27 million
dollars for the project, 88% of those requirements have been
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ADJOURNED MEETING - JULY 12, 1988
imposed upon the City of Yakima since the Wastewater
Treatment Plant was built. Mr. Barnett added that the 1988
Discharge Permit was issued with the condition that the Plan
would include implementation of these various requirements or
the permit will be revoked. He stated the 'figure was far
beyond what he had estimated and he does not agree with all
of the additional requirements. Mrs. Gaudette stated the
requirements will change form year to year, and she agrees
with Mr. Moore that it is time to rebel against DOE and EPA.
Council member Foy stated Bellingham, Port Angeles and Port
Townsend disregarded the mandates. of DOE and EPA and this
year their federal funds were discontinued. He "added that
these cities have to implement. the .same changes as City
of Yakima, however, they are not eligible for any type of
federal. funding. Mr. Foy stated it is a dilemma, but the
circumstances could be worse if the. City'had not 'made the
decision to participate • in the. 90 -10% federal funding
program for the project. Mrs. Gaudette commented on the
infiltration problem and asked about replacing the dual
.irrigation system and 'eliminating that source of
infiltration. Council member Carmichael stated Council is
also considering a resolution.to the infiltration problem,
however, that is a separate issue. Council "member Buchanan
stated the sewer line should be repaired or.replaced if that
is the problem, but .the irrigation system_may_be needed later
and, should not be removed at this time. He suggested
repairing or replacing the sewer line or irrigation. line as
needed. Mr. Buchanan pointed out that over $600,000 was
spent to replace a. portion of the City's.. irrigation lines
a few years ago with the assistance of Block Grant Funds.
Regarding the grease problem in the sewer. lines, Mrs.
Gaudette asked if the problem is being caused by households
or the fast food establishments in the City? Assistant City
Manager Stouder stated part of the issue is that state and
federal requirements have changed since the Treatment
Plant was completed. He stated the demands on the system
have also changed since that time and the type of waste being
disposed of today is different, specifically strong wastes
being disposed of from industries. He stated staff is trying
to do a. better job of identifying the strong waste being
discharged and is making an attempt to properly bill those
industrial users, but additional staff is needed to
accomplish this. He said about two thirds of the strong waste
_ discharged .into. the system. is not identified because
.insufficient staffing levels make it impossible to
adequately monitor the industrial waste on a daily basis.
Mrs. Gaudette stated she is frightened to think that rates
will continue to be raised in the future and this will
eventually become an impossible situation. ,
Bertha Schumacher, 1011 South 49th Avenue, commented a lot of
people cannot absorb any more rate increases and inquired as
to what they are supposed to do.: She stated _there are only
two in her household and she does not feel they use the
minimum amount.,She stated in 1980 she paid $70 for sewer
service and in 1987 she paid $179. She asked where will it I//
end? Mrs. Schumacher stated she favors equality and would
like to see everyone assessed the same rate.
Ken Powers, 7902 Englewood Avenue, of the Viewmont Park
L.I.D., stated he does not like the surcharge, but he signed
the outside utility agreement,' therefore, he is ready to
annex to the City, however, if he had known about the
increase, he would not have signed the - outside utility
agreement. He stated there should be a limit to the amount
the City can raise the surcharge. Mr. Powers also commented
the City should refuse to service the residents outside the
City limits and force the County to provide sewer service.
He said he realizes there will have to be increases to the
rates periodically but he feels the 96% is excessive.
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ADJOURNED MEETING - JULY 12, 1988
Don Rullman, 401 South 49th Avenue,. stated the sewer he is
. connected to was installed by the County', yet he pays 50%
more than the City residents. He stated as taxpayers, all of
the residents of Yakima County have contributed to the 90%
. matching funds for, lines.Be said he was upset that he
had to pay $50 to see if he could be connected tothe sewer.
Mr. Rullman stated the majority of the residents in his area
are willing.to annex to the City.and_ he does not think it is
fair.they have to pay the 96% surcharge. .
Dorothy Derry, ,1008 South 50th Avenue, stated she lives
fairly close to Mr. Rullman and is ready to annex whenever
. the City requests annexation. She asked if Terrace Heights
• and. Union Gap pay a surcharge? Assistant .City Manager
Stouder stated they pay a rate structure based on their own
costs, to their ,.customers., City Manager Zais .further
.explained that Terrace_Heights' and Union Gap`are part of a
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four party agreement entered into .by the City 'and County in
1976 whereby they purchase usage of the Sewer Treatment Plant
from the City_and bill their users accordingly. Mrs. Derry
. ask.ed how many county residents currently pay'.the surcharge?
Assistant City Manager Stoude r stated he believes about three
to four thousand residents' pay the surcharge.. Mrs. Derry
asked if industry is paying their fair share for using the
system? Mr. Stouder stated industrial plants are charged on
a perc basis according to the amount of strong waste
. discharged into the system. Mrs. Derry asked if the apple
processing plants. are •. monitored regularly and Mr. Bates
_ stated, "yes, they are monitored on a se.parate the
waste is. not processed through the , Sewerl.Treattnent ,Plant, but
is treated in the sprayfield." He stated anything over and
above the normal amount of domestic sewage is as
,strong - waste. He •commented an industrial plant, such as the
Northwest Packers Hide Company in Union Gap,. pays about
,$18,000 a month and their rates fluctuate on a percentage
basis. ,
Larry Evans, 6612 Tieton Drive, asked when a:sewer line is
_ engineered, developed, and connected to the individual
property by a developer at no cost to the City, how are the
costs assessed to the property, owner? He stated the only
expense to the City is the main trunk line that comes from
the City to the West Valley area, and this was paid for with
, federal funding,. Mr. Evans stated:the City has 10%
matching funds invested in the trunk lines. He asked Mr.
Greenough,who is the individual responsible for development
of the ..rationale ,of charging the* users' for City sewer
service. Mr. Greenough stated this is the same rationale
used by any ,business in today. - Mr. Evans asked if
the .City is a business and operates on ,a profit and loss
basis? City Manager Zais stated utilities are regulated in
terms of how .they,. are structured by state law. Council
II li : member Carmichael stated the City paid for the'trunk lines in
the West Valley area, however, federal money was used for the
interceptor lines to the West Valley ,area. Mr. Evans stated
West Valley School District is connected to this sewer system
and asked if. their rates are to be increased 96 %? He stated
if so, that is another expense the West*Valley residents will
have to absorb. He also commented that the Yakima Urban Area
. Comprehensive Plan states that all industry will be centered
around the downtown',service area, and he believes the 96%
surcharge to county res*idents will assist that theory
considerably because industry'will not•want to locate in the
County because. of the surcharge.. Mr. Evans again asked Mr.
Greenough who developed the '.rationale that County residents
will pay,a 50 %.,surcharge based on the fact that,.they live in
the ,County? Without allowing time for a response from Mr.
• Greenough, Mr. Evans interjected "rationale is a lame excuse
when someone cannot come up with an answer." Council member
Foy commented that. when a developer installs'a system into a
particular development, the sewer line - is added to the
. cost of the individual piece oCproperty in that development.
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ADJOURNED MEETING - JULY 12, 1988
Mr. Foy stated the City inspects the sewer line and the
developer turns the system over to the City after the
inspection of the sewer connections. Mr. Evans stated the
property that has the sewer connected is not part of that
particular development; it is outside the system and the City
is billing him for the sewer connection made by the
developer. On another issue, Mr. Evans asked' when a
development does not have any irrigation* water,'- is the
domestic water used for irrigation purposes figured into
the sewer bill? Mayor Berndt stated, no, and explained that
residents u domestic .water for - irrigation purposes
receive a special rate during the summer. Council member Foy
asked if Mr. Evans is using City water to irrigate his lawn
with and Mr. Evans replied he uses Nob Hill Water. Council
member Foy stated he cannot answer for Nob Hill Water
Company, but City residents receive a special rate when it
is necessary for them to use domestic water for irrigation
'purposes. Mr. Greenough stated Nob -Hill customers
automatically receive an irrigation rate during the summer.
He stated they are initially assessed at a standard
consumption rate of 16 units of consumption every two months
and that is the basis for sewer charges regardless of the
amount of water used during' "the summer months for the first
two 'years you are in that residence. He further explained
that the actual consumption for the prior two winters is
used to establish a normal monthly consumption and that is
the 'ba for the sewer charge during the summer
months, therefore, those_ residents are receiving an
irrigation rate during the summer months. Mr. Evans stated
he has been in'business in'the Yakima Valley for 27 years and
has lived in Yakima for 35 years s� there are very-few things
he can be told about the Yakima Valley that he does not
already know. stated sometimes things never get answered
and the question he has posed to Council about the outside
' 'utility hookup has gone unanswered for two years and he still
has not received a satisfactory explanation. He stated the
property in question has been altered from three commercial
lots down to one coMmercials lot. Assistant City Manager
Stouder stated he would like to respond to-several questions
posed by Mr. Evans. He stated the West Valley High School is
still on septic system and is not being served by the City
sewer, therefore; 'rates of the West Valley residents will
not be increased. Mr. Evans stated that is untrue: Mayor
• Berndt interjected that the•High'School just had to build a
new drain field, she knows they are not connected
to the City sewer line. Mr. Evans stated Wide Hollow School
is on the sewer system and that is the West Valley School
District. In response to Mr. Evans' 'inquiry about the
'author of the formula for the surcharge, Mr. Greenough
stated it is an accepted state formula, however, he does not
know whom the council or 'commission was that developed the
,formula. Mr. Evans stated the head of DOE does not agree
with the City and that is why he was able to get an on site
septic tank system set up at the location for the new mini
mart on an• interim basis while the outside utility
application' was being processed and until the sewer
connection could be made.' He stated, "I do not agree with .
aTl this and I don't feel the county residents are being
represented by County officials here tonight." He further
stated he does not believe that any of the candidates running
for election as County Commissioner will handle the situation
any differently. In response to Mr. Evans' comment that he
feels the system should be developed so that it is self
sufficient and not dependent upon federal funds,- Mr. Stouder
stated "that is exactly the basis of the Rate Study and the
Financial Plan, Mr. Evans stated originally it wasn't set up
that way and that is the reason . the City is in this
current situation. Mayor Berndt stated at this point it
really doesn't matter if federal dollars are involved or not;
as long as you have a Wastewater Treatment Plant that
discharges into a public waterway, you have to meet federal
- requirements. Mr. Evans agreed that "we all want clean
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ADJOURNED•MEETING - JULY 12, 1988
water and air, but you hear more from the environmentalist
• =than "-from the person that - is' .down here running off at the
mouth: "' Mayor' Berndt commented,••: "that 'is true; it is
the squeakywheel that gets the grease:"
Barbara Harris, 1909 West Yakima Avenue, stated she is
unhappy with the 1.6% rate increase for City residents but she
L understands this is a result of: state and federal mandates.
Mrs. Harris stated if the outside utility surcharge does not
go into effect, the City residents will be faced with a 21%
rate increase: and she does not feel that would'be fair to
City- residents to carry the burden for the- County..residents
-- • receiving the benefits of City sewer service:
I/
''' Shirley Doty,•: State- - Representative,: addressed the City
Council stating' she feels somewhat responsible for -the West
Valley residents because about five years ago, as a City
Council Member, .she promoted the opportunity for the West
Valley residents to"have sewer service • because some of them
- - had -open •sewage on the 'ground..-She stated she feels those
- residents' are somewhat .caught now' because once •their septic
'' system fails they' are mandated to hook up to the City sewer
,- tine. She stated.' if she had known' that they 'would be faced
with the 9 surcharge, she would 'have been more-hesitant
`about' promoting' the sewer • lines' into the` West - 'Valley area.
'
:.She ' commented at the same- time she . does not believe the City
should 'subsidize 'the County • resid'ents • or -vice versa.
'Representative Doty asked the Council(to :'take another look at
the possibility of •reducing the '96% surcharge somehow and
asked if some of these state and federal - mandated• items can
be instituted more gradually- over the next six so the
' impact does not hit all at once. She stated if—the 96%
surcharge is 'instituted the -result • might be .fewer sewer
• connections; illegal connections or people trying to fix
"their' septic tank "systems; • all• of which: could result in the
problems being compounded. Council- member Barnett stated one
• _' ' - of the problems i•s'that the lines were installed for outside
utility hookups, but people' have ' been -. -slow to do so or
'•illegal• hookups "have been made. Be stated the consultant
• recommends "that the extension of sewer. - •service to
, --additional unincorporated areas around the .City without
''immediate customer connection will' place an_ additional
- •financial -burden on 'existing•_customers with little or no
-- immediate =return."-He commented this is • something the City
must 'be very careful - about in- the - future . Mrs . Doty stated
. might be relatively easy to annex those areas that are
- . G . close to the City boundary now, but•- .in• - casesi such as Viewmont
-Sewer'. L.I:D. this is not too realistic. - Representative
' Doty commented the material repeatedly refers , to'the State
and'Federal mandates, but she•does not know 'what can be done
about this situation. She - asked:' the Council to reconsider
and see if there is' something that c•an! bey done` for those
II ''' outside the' City limit's.' '
Ken Powers, 7902 Englewood Avenue, stated in relationship to
the 96% surcharge that will be assessed to the County
•- residents, the "amount , of money that :the City will - .,realize is
a mere pittance , compared to the - money will be assessed
. to the City residents. •
Council memb -Foy stated' it is unfortunate that the County
did- not avail themselves of :the opportunity to participate in
the 90' -10% federal= funding program at ' the time- the . City of
Yakima did. He stated ='the City Ahas taken part -of its bonded
indebtedness and allocated it to this service -and by doing
' so -the 'City has eliminated that capability-of-indebtedness
to provide other services that the citizens have requested.
He stated there is no way to -take this issue to the • citizens
• for-' -a vote because these are state an•d' federal. mandates.
Mr:.= Foy pointed out that the County has no bonded
indebtedness-'td and therefore, has a lower tax
base than-the-'City. - v...
406
ADJOURNED,MEETING - JULY 12, 1988
Mr.. Powers, 7902 Englewood Avenue, reiterated, that he
understands _County ,residents must pay, a 50$ surcharge,
however, he feels the 96% surcharge is excessive.
Council member Buchanan stated the surcharge issue is a
problem. that staff has been dealing with for some time now
and..has finally determined that it should be rather than
50 %- .
Jeanine .Rullman, 401 South _49th Avenue, asked . how much are
City.residents charged per month for sewer service? Council
member Sims stated that is based on the consumption of water.
Mrs. Rullman stated she pays $46 every two months and th
additional 4.6% is_ ,going to, increase this. amount significantly
considering there are just- two people in their household.
John_.Hage,dorn,, 208 South .69th Avenue, commented 2 .orl the
statement,by .Council member Foy that not all of the people
are_ hooking up to the City .sewer in areas.. where it is
available. He when he hooked up to the City- .sewer the
charge ,was $234.93, with an additional $105 in interest that
he was ,unaware he owed. He stated there are a- lot. of people
on his street that are not hooked up to the sewer and do not
know they will have to the interest charges when they
decide.to connect to the City sewer. Council member „Buchanan
• stated when they attempt to hook up to the City sewer the
interest charges ;should be showing up on the title search.
Mr. Hagedorn-,stated a neighbor just purchased a house and the
interest charges were not included on the title. He also
stated ..the.County. invested money into the installation of
these sewer lines too. Council member. Barnett stated there
are locations that are exceptions_to the general.rule and
this area may be .one of ,those. Council member ,Foy asked if
a_person is informed of the interest charges that accompany
the outside utility agreements. Mr. Greenough stated he is
not sure •what the process is because•this is. handled through
the Engineering Department._ City Manager.Zais stated Rita
. Germunson of the Engineering Department processes the outside
• utility _agreements and can provide the Council ..with the
complete. answer, as to how these_ agreements.,are processed.
Council member Buchanan stated two months ago, there was an
L.I.D. that went through a vacant lot- .and•the,,share that
would- have been assessed to that lot is being : picked up by
the residents ,of theCity. He stated in the future, if the
property ,owner connects to the .sewer, he (the property
owner) ..will have to .pay for the interest that has,,accumulated
for that,.property. Mr. Foy stated he has heard several
people ,state that they were caught unaware that the interest
was owing and he_.would like to, know .how expense is
passed on to the citizens. Mr. Hagedorn stated he, signed an
outside utility agreement in which- he agreed to annex to the
City and that is the last he has ever heard of the annexation
issue. Mayor Berndt stated staff will be checking on that.
•
Gary. Webster, Greater Yakima Chamber of Commerce, stated the
Chamber has studied the issues that have come forth from the
September 20th hearing, and realize- that City_is_ trapped
by the State and Federal mandates from DOE and EPA. Mr.
Webster_ asked, about the issue of the .City utility tax on
water and sewer which was to be placed An the,_general fund
and was specified for parks maintenance. He stated the
revenue is driven by the utility rates and the total dollar
amount collected in - revenue, Mayor Berndt stated the tax
was capped however, and Mr._Webster pointed out that if the
rates are .raised. now, you are going to be working with more
revenue that is going.. to_ generate more tax revenue as the
tax is applied to the base. He ; stated the percentage is
being applied against it, Sr. Webster : stated his, point is
that there will be a new generation of additional. dollars if
the rates go up. City Manager Zais stated Mr. Webster is
407
ADJOURNED MEETING - JULY 12,_1.1988
talking .about,. the general in .lieu tax on the utility which
would ,accrue. to the general, fund. Mr.. Zais stated this plan
does .not .propose, any change, in .that lieu tax rate. The
• - could ,decide at : any time to reconsider that in
light of budgetary, requiremen.ts,_or any shortfallsthere may
be, however, it will have to . be evaluated on that basis. Mr.
,Webster stated the, traditional use of the in lieu of tax has
been,to •use the sewer and water as, a generator to complement
addi revenues to the general, fund. He, has there
been any consideration given ,at this point to_,take that in
lieu tax and pour it back into the -_accounts that are
generating it, that is reduce it, specifically in
relationship to sewer. Mr.. Zais ,stated the _answer to that
question is, "no." Mr. Webster _asked Mr. Zais if _he sees
any reason to consider that? Mr. Zais stated that all
depends on what the 1989 budget looks like and what our
revenue requirements may be.
Leonard Sherry, 204 South 69th Avenue, spoke about the grease •
problem being experienced today in the sewer lines. He
stated many years ago City ordinances required grease traps
be installed in restaurants and similar places that produced
a lot of grease. Some time later the grease traps were
removed due to the. new detergents which were supposed to
reduce the .' of grease the • lines:_ .Bruce~ Bates
stated ' some �f the restaurants may still. have;g;rease traps,
however, the City has no way of monitoring or enforcing this
to see that the grease traps are pumped out on a regular
• basis. He stated the County Health District has mandated the
temperatures Ape increased to approximately 180 degrees which
liquifies the grease which then goes in to the sewer system
and solidifies causing a problem in the lines.
Betty Gaudette delivered a message from 'Ines Rice, 4409 West
Arlington, who stated Council probably knows. how she feels,
but to remind them (the Council) that she didn't want to be
in the sewer business in the first place and that she doesn't
want to be in the water business. Thirdly, she too is tired
of being ripped off and the County residents can help us and
solve their problem too by being annexed and we would also
share with them our bonded indebtedness, our City parks, our
bus services and the cost of these. Mrs. Gaudette pointed
out that the difference for the City residence is just 5% but
that is only on sewer service. She stated City residents
also are faced with water treatment, irrigation and whatever
else might be increased in • the coming years. She stated
there are low income people to whom these increases impact
significantly. Mrs. Gaudette asked if the City paid off the
• last parks bond issue prior to voting on another one? City
Manager Zais stated he does not think it is completely paid
off yet. Assistant City Manager Stouder stated there might
be a one or two year overlap period but sometimes it is
II difficult to plan in ten and twenty year increments without
this happening.
Tiny Fuson, 1015 South 49th Avenue, cautioned the City
Council about increasing these rates 10 or 15% a year because
there are elderly people that cannot pay this type of
increase. He stated whatever the Council does with regard to
increasing rates has repercussions for those living on
Social Security. He spoke about the rate for irrigation and
commented.if a person does not water the grass and keep the
weeds down the City fines them for that as well. Council
member Barnett stated he also has concerns about the lower
• income people and recently looked for statistics on this. He
stated in 1980 22% of the households in the City of Yakima
• were classified by HUD as very low income. He stated in 1988
HUD classifies low income as $10,000 to $18,000 a year
depending on how many are in the family.
Council member Carmichael stated the bottom line is that
someone has to pay for the treatment of the water and for
408
ADJOURNED -MEETING - JULY 12, 1988
getting -that water to the residents to use, And the City
Council has the responsibility of trying-to find a-judicious .
way of accomplishing this. She stated someone has to pay for
these services and trunk lines, etc. and the -City Council is
trying to find a way to be fair about this.
Mayor-Be-rndt closed the public hearing at this time as there
• was- no one else present to speak to the Council ,
member Foy thanked those citizens for participating in
• tonight!s public -hearing • and the - manner- in- which they
conducted - themselves.
. i
It -was MOVED by Buchanan, seconded-by Carmichael Jto adjourn
at the hour , of 9:50 P.M: - -
READ AND CERTIFIED ACCURATE BY .r,, 410 - 9 - -(- g
0 ICIL ME :ER DATE
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. • . - ', -, __..., ATTEST: COU CIL MEMB . DATE
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lam: - , ' • • .0 i ' ifirAC -
ACTING of Y- CLER/ i MAYOR
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