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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. 397 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. • 398 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 • 399 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 400 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 401 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 I/ 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 I/ 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 402 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. 403 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 I/ 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. • 404 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 • . 405 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 , / j . • . - ', -, __..., ATTEST: COU CIL MEMB . DATE • lam: - , ' • • .0 i ' ifirAC - ACTING of Y- CLER/ i MAYOR • • i