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Sequim council authorizes interlocal agreement to assume Flores Acres sewer and water projects

5952527 · September 9, 2025
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Summary

The Sequim City Council authorized the city manager to execute an interlocal agreement with Clallam County to accept Department of Ecology loan funding and coordinate sewer and water connections for the Flores Acres neighborhood; council also discussed related Department of Health grant and Local Improvement District plans.

The Sequim City Council moved to authorize the city manager to execute an interlocal agreement (ILA) with Clallam County so the city can accept and administer Department of Ecology loan funding, and coordinate sewer and water connections for the Flores Acres neighborhood.

Paul Busic, Sequim’s public works director, told the council the ILA will allow the city to take over a loan originally issued to Clallam County and to perform work within the county right-of-way until the area is annexed. "The ILA also stipulates that the county agrees to participate actively with us ... at no cost to the project," Busic said, and reported that the Ecology loan had been moved into the city's account in the Ecology system and was fully funded.

Members of the Flores Acres neighborhood spoke during public comment in support of the project. Lisa Ann Oliver said the neighborhood had secured a Department of Ecology funding package that includes $1,900,000 in principal forgiveness and a $661,000 low-interest loan at 0.7 percent, and that residents plan to petition for annexation and form a local improvement district (LID) to repay the loan portion.

Busic said a separate Department of Health grant of about $1,800,000 to support connection to city water is in process and is a direct award to the city (not to the county). He said the Department of Health draft had previously omitted about $80,000 for inspection services; county and city staff agreed to split that amount and pursue other grant options for the remainder.

Councilors moved and seconded a motion authorizing the city manager to sign the ILA; the motion passed with no recorded opposition. A formal agreement from Ecology was expected after an upgrade to Ecology’s loan-tracking system, which Busic said would delay bringing the final agreement to council until November.

Ending: The council approved the step that lets staff move forward to accept Ecology funding and coordinate construction and annexation steps; work on the LID and final grant agreements remains in progress.