CITY COUNCIL MINUTES March 5, 2025 City Council of the City of Ephrata, Grant County Washington met in regular session on March 5, 2025. The meeting was called to order at 6:00 p.m. by Mayor Bruce Reim. Members Present: Mayor Bruce Reim, Mayor Pro-Tem Matt Moore, Council members Phil Borck, Kathleen Harris, Beau Lamens, Sarah McDonnell, Valli Millard, and Mike Warren. Staff Present: Community Development Director Ron Sell, Finance Director Kristen McDonnell, Chief Financial Officer Leslie Trachsler, Public Works Director Rob Harris, City Engineer Shawn O'Brien, Permit Technician Stacy Hooper, and City Clerk Katie Kapalo. Pledge of Allegiance was said. No public signed up to speak. This meeting is being recorded. Agenda: Correction to the agenda: adding Resolution 25-03 Supporting PWAA Legislative Letter to (8) VIII C, and removing Set Grant County Annexation Public Hearing for April 2, 2025 from II (d). Presentations: None Consent Agenda: Motion was made to approve consent agenda. (m/s Warren/Millard) 7 ayes, 0 nays, motion carried. Items on the consent agenda are as follows: Claims #101688 through #101737 in the amount of $1,500,837.44 Claims Check #101686 through #101687 in the amount of $1,802.59 Payroll Check #48319 through #48325 in the amount of $22,124.48 Direct Deposit in the amount of $277,406.78 Claims Check #101671 through #101685 in the amount of $184,712.13 Direct Debit in the amount of $15,300.00 Minutes of the February 19, 2025, Council meeting Special Event Applications: Gran Fondo Re-Appointment of Tom Moncrief to Planning Commission Ordinance 25-03 2025 Budget Amendment: The law says that the city can only spend the money that was planned in the budget for the year and sometimes, the budget needs to be adjusted. At the end of 2024, there was extra money from a state and local program left in the General Fund. That money needs to be moved to a different fund to help pay for the City-wide Street Resurfacing Project. This ordinance allows the city to officially update the budget SO the transfer can happen. Motion to forego the second ordinance reading and approve Ordinance 25-03 as presented. (m/s Moore/Millard) 7 ayes, 0 nays, motion carried. Resolution 25-021 Approving Section 125 Flexible Benefit Plan In 1999, the city partnered with American Fidelity to manage the Section 125 Flexible Benefit Plan, also known as a Cafeteria Plan, which allows employees to pay for medical premiums before taxes. To keep its tax benefits, the plan must follow IRS rules, including being in writing, open to all eligible employees, offering multiple benefits, and not favoring highly paid employees. Without a written plan, the IRS could disqualify it. American Fidelity provides a sample plan document that meets these requirements, using details provided by the city. Motion to adopt Resolution 25-021 as presented. (m/s Borck/Moore) 7 ayes, 0 nays, motion carried. Resolution 25-022 Adding Policy on Lease and SBITA Thresholds The Governmental Accounting Standards Board (GASB) provides rules on how leases and SBITAS subscription-Dased IT agreements) should be reported in financial statements. Since the city uses a cash-based accounting system, certain adjustments are needed for accurate reporting. In 2023, Washington's State Auditor's Office required SBITAS to be included in the Annual Financial Report. In 2024, they recommended setting rules for how leases and SBITAS are categorized. This policy will help by making sure leases and SBITAS are properly classified based on their cost and length, keeping financial reports accurate and in line with best practices, and setting clear rules for tracking and reporting these agreements. Motion to adopt Resolution 25-022 as presented. (m/s Moore/Warren) 7 ayes, 0 nays, motion carried. Resolution 25-023 Supporting PWAA Legislative Letter The City of Ephrata and other Washington communities urge the Legislature to fully fund the Public Works Assistance Account (PWAA), which has helped cities maintain critical infrastructure like water, wastewater, and transportation for nearly 40 years. The PWAA has funded over 2,200 projects statewide with low-interest loans and grants, but demand for infrastructure funding far exceeds available resources. Last year, $262 million was requested, but only $175 million was available, leaving many projects unfunded. Diverting more money from the PWAA would make it harder for cities to maintain and improve essential services, leading to higher costs and potential system failures. Investing in infrastructure now strengthens communities, boosts the economy, and ensures a stable future for Washington. Motion to adopt Resolution 25-023 as presented. (m/s Harris/McDonnell) 7 ayes, 0 nays, motion carried. New Logo Discussion The City of Ephrata currently uses a City Seal created in 2008 but plans to adopt a new logo for branding and communication while reserving the seal for formal documents. A modern logo will help create a strong civic identity, boost community pride, and ensure consistency across platforms like the City's website and mobile app. The proposed designs were inspired by Ephrata High School digital art students, with elements from their concepts incorporated into the final options. Council members will review three pages of logo variations, provide written feedback by March 11, 2025, and vote on the final selection during the April 2, 2025, meeting. Mayor recessed at 6:15 p.m. for 5 minutes. City Attorney Katherine Kenison and City Administrator Ray Towry joined via Teams at 6:20 p.m. Mayor began executive session at 6:20 p.m. to discuss litigation or potential litigation [(RCW 42.30.110 (1) ()] for approximately 20 minutes. Mayor extended executive session for an additional 5 minutes. Executive session adjourned at 6:44 p.m., no decisions were made, or action taken. Mayor adjourned meeting at 6:44 p.m. Scuees Bruce Reim, Mayor ATTEST: Katie Kapalo, City Clerk