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Downtown alley project: $2.44 million plan includes $1 million CDS grant; council to see SCJ amendment

Yelm City Council · March 3, 2026
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Summary

City staff presented a plan to convert the alley north of City Hall into an "activated alley" with new pavers, undergrounded utilities and streetscape improvements. Total construction cost is listed at $2.44 million, with $1.0 million secured through CDS funding; staff will bring Amendment #8 to the SCJ engineering contract to authorize construction management.

City staff presented details of a downtown "activated alley" project that would transform the alleyway from Third Street to First Street (north of City Hall) into a pedestrian‑oriented, activated space while maintaining access for deliveries and service vehicles.

Design features include concrete pavers that facilitate infiltration (reducing the need for new catch basins), undergrounding overhead utilities along the pathway, relocating a problematic power pole at a business parking lot, landscaping and benches. Staff said most of the utility undergrounding will be paid for by utilities where applicable and that work will be scheduled to avoid business downtime; brief service interruptions could occur during final connections.

The project budget presented at the study session was $2.44 million total. Staff said they have secured $1.0 million in CDS (Community Development/State) funding sourced through Congresswoman Strickland's office; the remaining $1.4 million was described as local funds obligated to the project. Staff also confirmed the water main between First and Second Streets (an old concrete pipe from the 1960s) will be replaced and upsized, and that the water portion of that work will be charged to the water fund (fund 404).

Staff explained the alley project has accumulated multiple contract amendments over the life of the larger corridor work and that Amendment #8 to the city’s engineering agreement with SCJ would authorize construction management and additional design/management services. Staff told council they are finishing bid documents with a goal of issuing the project to bid by April; with cooperative utility scheduling staff said the alley could be substantially complete by the following September.

Council requested a breakdown of money already spent on the project and on prior contract amendments; staff agreed to supply the expenditure history and contract detail before the amendment is finalized.