HomeMy WebLinkAbout03-16-1998 CITY OF AUBURN
7:30 p.m.
Marci~ 16, 1998
I. CALL TO ORDER
A. Flag Salute
Mayor Booth called the meeting to order at 7:40 p.m. and led those
in attendance in the Pledge of Allegiance.
B. Roll Call
Mayor Booth and the following members of the City Council were
present: Pete Lewis, Sue Singer, Jeanne Barber, Trish Borden,
Fred Poe, Gene Cerino, and Rich Wagner.
Staff members present included: City Attorney Michael J.
Reynolds, Planning and Community Director Paul Krauss, Utilities
Engineer Dwight Holobaugh, Finance Director Diane L. Supler, City
Engineer Dennis Dowdy, Fire Chief Bob Johnson, Parks and
Recreation Director Dick Deal, Public Works Director Frank Currie,
Police Chief Dave Purdy, Personnel Director Brenda Heineman,
City Clerk Danielle Daskam, and Deputy City Clerk Cathy
Richardson
C, Announcements and Appointments
1, Announcements
a) American Legion
Mayor Booth and City Council to receive a plaque
from the American Legion in appreciation for City
Resolution No. 2916 authorizing the flying of the
POW/MIA Flag.
On behalf of American Legion Post 78 of Auburn,
Vice Commander Del Warren presented a Certificate
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City of Auburn Council Meetincl Minutes March 16, t998
of Appreciation to Mayor Booth and the Auburn City
Council. Mr. Warren expressed Post 78's gratitude to
the City and its Councilmembers for flying the
POW/MIA flag at City Hall and for the City's
recognition of the POW/MIAs of recent wars who are
still missing or incarcerated.
2. ADDointments
There were no appointments for City Council review.
D. Agenda Modifications
Mayor Booth announced an agenda modification to add Resolution
No. 2931 transmitted under item VII.B.3 of these minutes.
Councilmember Wagner indicated he may request the removal of
Resolution No. 2931 from the agenda, but would like it to remain on
the agenda at this time in the event there would be some audience
participation.
II. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE
A. Public Hearings
1. Local Law Enforcement Block Grant
O1.8, F5.4.1
The City of Auburn's application for funding under the
Department of Justice Local Law Enforcement Block Grant
Program has been approved in the amount of $46,343 for
the purpose of reducing crime and improving public safety.
The City of Auburn proposes to pay overtime, training and
supplies costs for police officers engaged in community
policing activities. Special conditions of the grant award
require the City to encourage participation regarding the
proposed use of the payment under the Local Law
Enforcement Block Grant in relation to its entire budget.
Mayor Booth opened the public hearing.
There were no requests from the audience to comment on
the Department of Justice Local Law Enforcement Block
Grant Program.
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City of Auburn Council Meetin~ Minutes March 16, t998
Councilmember Barber moved and Councilmember Singer
seconded to close the public hearing.
MOTION CARRIED UNANIMOUSLY. 7-0.
Councilmember Barber moved and Councilmember Lewis
seconded to accept the Department of Justice Local Law
Enforcement Block Grant Program.
MOTION CARRIED UNANIMOUSLY. 7-0.
B. Audience Participation
Christine McCullough, 40 Lake Bellevue, Bellevue, WA.
Ms. McCullough expressed interest in how a competitive bid is
processed in the City of Auburn. Ms. McCullough requested an
opportunity to present her program on the LEOFF I long-term care
insurance that is being contemplated by the city. Ms. McCullough
felt that her program would be competitive and would like to be the
broker of record.
Councilmember Poe requested an explanation of the request for
proposal (RFP) process. City Attorney Michael J. Reynolds
established that the City put out an RFP for brokerage for the long-
term care and from that process selected a dual combinaiion of I.wo
different firms that would act as broker of record for long-term care.
Ms. McCullough then contacted Mr. Reynolds and the department
heads regarding her proposal. She wanted a legal opinion to
protect her in the commissioning arrangement if the City chose to
buy her policy. It appeared that the broker of record agreement
that the City executed had an exclusive on the commissioning. Mr.
Reynolds conveyed that information to Ms. McCullough
Ms. McCullough commented that she never received a request for
proposal. Her contact was directly with Personnel Director Brenda
Heineman and Employment Manager She,lley Werner. After
continual follow-up she was notified that another firm was chosen.
Personnel Director Brenda Heineman explained that staff
interviewed approximately five to six brokers over one and one half
years to determine if we would be selecting long term care or self-
insure. As part of that process experts were consulted and it was
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City of Auburn Council Meeting Minutes March 16, 1998
decided that the best decision was to go with an insurance policy.
Of the policies that were presented each was evaluated and the
committee's first decision was to select the broker of record
because of their expertise in the field and their long history. An
exhaustive chart recommended through the State Commissioner's
office was utilized to analyze policies.
Finance Director Diane L. Supler understood that at the time the
various brokers were interviewed, the product presented by Ms.
McCullough was not available to the City. It was after the decision
to go with the current broker that the alternative product was
offered,
Ms. McCullough expressed that neither the processes nor the
requirements of the Request for Proposals were relayed to her, and
she was unaware that a decision had already been made.
Councilmember Borden inquired where the City stands in the
selection process at this time.
Personnel Director Heineman advised that the State Insurance
Commissioners office is reviewing the Allianz specimen policy.
Comments from the State Insurance Commissioners office are
expected within the next couple of weeks.
Councilmember Wagner advised that as a member of the Finance
Committee, he reviewed the process used by Ms. Supler and Ms.
Heineman. He was satisfied with the detail of the process. He
reiterated that a timely selection decision must be made at some
point in the selection process due to the ever changing nature of
the policies.
Councilmember Lewis concurred with Councilmember Wagner's
comments.
Councilmember Poe expressed satisfaction with the process based
upon the explanation given by staff and comments made by
Councilmembers Wagner and Lewis and recommended staff and
Council proceed. He suggested that staff review the selection
process to ensure no conflicts of interest occur in the future,
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City of Auburn Council Meeting Minutes March 16, 1998
Ms. McCullough suggested the CNA policy had great benefits with
guarantee issue and felt it was a better policy than Alliahz.
City Attorney Reynolds noted that a number of people from the City
of Federal Way and Lakehaven Utility District were in the audience.
He suggested that the Mayor allow Federal Way and Lakehaven
Utility representatives to make their comments during Council
deliberations on Resolution No. 2931 (Item VII.B.3 of these
minutes).
C. Correspondence
1. Letter dated March 10, 1998 addressed to the City
Councilmembers from Don Perry, General Manager of the
Lakehaven Utility District regarding City of Federal Way
proposed Interlocal Agreement.
Mayor Booth announced the receipt of the following
correspondence from City Attorney Reynolds.
2. Letter dated March 12, 1998 addressed to the City Attorney
Michael Reynolds from Lawler and Burroughs, P.C.
regarding the proposed Interlocal Agreement between the
City of Federal Way and the City of Des Moines.
3. Letter dated March 13, 1998 addressed to the King County
Boundary Review Board from Arthur Garverick regarding the
Lakehaven Utility District.
III. COUNCIL COMMITTEE REPORTS
A3.7.6
A. Municipal Services
Chair Poe reported the Municipal Services Committee met March
16, 1998 at 5:00 p.m. The Committee recommends approval of a
10% increase in airport hangar and tie down rates. The Committee
recommends approval of the high bid for the Goedecke South
property. The Committee reviewed and recommends authorization
of the bid for removal of City underground fuel storage tanks and
replacement with above ground tanks. The Committee also
recommends approval of Ordinance No. 5081 and Resolution No.
2912. The Committee discussed proposed Hangars Unlimited
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City of Auburn Council Meetinn Minutes March 16, 1998
lease. The next, regular meeting of the Municipal Services
Committee is scheduled for April 6, 1998 at 5:00 p.m.
B. Planning & Community Development
Chair Borden reported the Planning and Community Development
Committee met on March 9, 1998 at 6:00 p.m. The Committee
discussed the City of Auburn Comprehensive Plan Amendments
and also had extensive discussion regarding vacant land in Auburn
and the Comprehensive Plan designations. Councilmembers will
be provided with a copy of the map the Committee reviewed, and
Councilmembers are encouraged to forward any comments to the
Committee for further discussion. The next regular meeting of the
Planning and Community Development Committee is scheduled for
March 23, 1998 at 6:00 p,m.
C. Public Works
Chair Wagner reported the Public Works Committee met March 9,
1998. The Committee requests the Council's support for
condemnation of property for storm drainage improvements for
Mountain View Cemetery and several other contract administration
items. The Committee received a presentation on Lakehaven
Utility District assumption by the City of Federal Way. The
Committee also received an update on the Comprehensive Storm
Drainage Plan and an update on the Regional Transit Authority
(RTA) draft agreement. Chair Wagner suggested the Council
conduct a workshop on the RTA. The next regular meeting of the
Public Works Committee is scheduled for March 23, !998 at 4:30
p.m.
D. Finance
Chair Barber requested Vice Chair Wagner report on the Finance
Committee meeting. Vice Chair Wagner reported the Finance
Committee met this evening at 6:00 p.m. He reported the
Committee recommends approval of Ordinance No. 5081 and
claims and payroll vouchers. The Committee received a legislative
update from Finance Director Supler discussed gambling taxes.
The next regular meeting of the Finance Committee is scheduled
for April 6, 1998 at 6:00 p.m.
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CitV of Auburn Council Meetin.q Minutes March 16, 1998
IV. CONSENT AGENDA
A. Minutes
1. Minutes of the March 2, 1998 regular City Council meeting.
B. Vouchers
F4.9.2, F4.9.5
1, Claims
Claims check numbers 130677 through 131039 in the
amount of $2,664,550.10 for Period 16 and dated March 16,
1998.
2. Payrell
Payroll check numbers 244959 to 245193 in the amount of
$731,133.84 and electronic deposit transmissions in the
amount of $463,322.64 for a grand total of $1,194,456.48 for
the pay period covering February 25, 1998 to March 11,
1998 are appreved for payment this 16th day of March,
1998.
C. Call for Public Hearing
1. Application No. CPA0001.-.98
03.4.3
City Council to call for a public hearing to be held on April 6,
1998 for consideration of amendments to Policy CF-62 of
the Auburn Comprehensive Plan pursuant to an order
issued by the Central Puget Sound Growth Management
Hearings Board.
D. Contract Administration
1. Public Works Project Number PR 628
O4.11.1 PR 628
City Council to award Small Works Contract No. 98-03,
Lakeland Hills Booster Pump Station, to Omega Contractors,
Inc. on their low bid of $38,987.00 plus Washington State
sales tax.
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City of Auburn Council Meetin.{1 Minutes March t6, t998
2. Public Works Project Number C8002
O4.9.1 C8002
City Council to grant permission to advertise for Public
Works Project Number C8002, "A" Street SE Overlay and
Patching.
3. Public Works Project Number PR 622
O4.9.1 PR 622
City Council to accept the project and approve Final Pay
Estimate No. 2 to M. A. Segale, Inc. for Public Works
Contract Number 97-18, Project Number PR 622, "C" Street
Overlay, in the amount of $1,376.55.
4. Public Works Project Number PR 568
O4.8.1 PR 568
City Council to approve Change Order No. 2 in the amount
of $5,769.13 and accept the project and approve Final Pay
Estimate No. 1 to Webfoot Construction, Inc. for Public
Works Contract Number 97-23, Project Number PR 568,
Auburn 400 Pond Improvements, in the ~.mount of
$136,988.62.
5. Standard Consultant Agreement between the City of Auburn
and Pacific Groundwater Group, Inc. for work related to
FAC0004-98, McKesson Water
A3.16.9
City Council to approve a Standard Consultant Agreement
between the City of Auburn and Pacific Groundwater Group,
Inc. for work related to FAC0004-98, McKesson Water, in an
amount not to exceed $28,130.
6. Amendment No. 1 to Agreement for Professional Services
between the City of Auburn and S.G. Phinney & Associates
O4.11.1 PR 620, A3.16.9
City Council to approve Amendment No. 1 to Agreement for
Professional Services No. AG-C-19 with S. G. Phinney &
Associates, Inc., for work related to Public Works Project
Number PR 620, Lea Hill Reservoir Protective Coating.
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City of Auburn Council Meetinfl Minutes March 16, 1998
7. Amendment No. 1 to Agreement for Professional Services
between the City of Auburn and HDR Engineering, Inc.
O4.11.1, A3.16.9
City Council to approve Amendment No. I to Agreement for
Professional Services No. AG-C-34 with HDR Engineering,
Inc. for work related to Well 7 and the Intertie and Green
River Pump Stations.
8. Public Works Project Number 626
O4.13.1
City Council to grant permission to advertise for Public
Works Project Number 626, City Underground Storage Tank
Removal and Aboveground Storage Tank Replacement.
E. Real Property Sale
A3.13.4
1. Goedecke South Property
City Council to award the bid for the Goedecke South
wetland mitigation easement to Opus NW on their high bid
of $146,000.00.
Councilmember Barber moved and Councilmember Singer
seconded to approve the Consent Agenda.
MOTION CARRIED UNANIMOUSLY. 7-0
V. UNFINISHED BUSINESS
There were no items for City Council review under this section.
VI. NEW BUSINESS
There were no items for City Council review under this section.
VII. ORDINANCES AND RESOLUTIONS
A. O~inances
1. Ordinance No. 5073
A3.13.4, O4.8.1 PR 604
An Ordinance of the City of Auburn, Washington, authorizing
the acquisition of a storm drainage easement by eminent
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City of Auburn Council Meeting Minutes March 16, 1998
domain, providing for the payment thereof; authorizing the
City Attorney to prepare a petition for condemnation in the
Superior Court in and for the County of King and for the
prosecution thereof for the acquisition of such storm
drainage improvements along Mountain View Drive, Capital
Improvement Project 604.
Councilmember Wagner moved and Councilmember Cerino
seconded to introduce and adopt Ordinance No. 5073.
MOTION CARRIED UNANIMOUSLY. 7-0
2. Ordinance No. 5079
O3.10.1 CUP0006-97
An Ordinance of the City of Auburn, Washington, providing
for a conditional use permit to allow for a 5,500 square foot
expansion of the existing church on properly zoned R-2
(single family) located at 123 "L" Street Northeast, within the
city of Auburn, Washington.
Councilmember Borden moved and Councilmember Lewis
seconded to introduce and adopt Ordinance No. 5079.
MOTION CARRIED UNANIMOUSLY. 7-0
3. Ordinance No. 5080
F5.2.15
An Ordinance of the City Council of the City of Auburn,
Washington, amending Ordinance No.4799, which approved
Federal ISTEA Preservation Grant funds with local matching
funds as provided in the Local Agency Agreement between
the City and the Washington State Department of
Transportation for the 1994-1995 Commercial Sidewalk
Improvement Program, PR 513C, for the purpose of
accepting an additional $7,500 of grant funds.
Councilmember Wagner moved and Councilmember Cerino
seconded to introduce and adopt Ordinance No. 5080.
MOTION CARRIED UNANIMOUSLY, 7-0
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City of Auburn Council Meetin,q Minutes March 16, 1998
4. Ordinance No. 5081
F4.3, O
An Ordinance of the City of Auburn, Washington, amending
Section 8.08.230 of the Auburn City Code, specifically Item
(E), to adjust the existing rate structure to incorporate the
January 1, 1998 yard waste disposal facilities tipping fee
increase.
Councilmember Poe moved and Councilmember Cerino
seconded to introduce and adopt Ordinance No. 5081.
MOTION CARRIED UNANIMOUSLY. 7-0
5. Ordinance No. 5083
O1.8, F5.4.1
An Ordinance of the City Council of the City of Auburn,
Washington, authorizing the acceptance of grant funds from
funding under the Local Law Enforcement Block Grants
(LLEBG) Program which grant has been approved by the
Bureau of Justice Assistance, Office of Justice Programs,
U.S. Department of Justice in the amount of Forty-six
Thousand Three Hundred forty-three Dollars for the purpose
of reducing crime and improving public safety as described
in the statute; providing for a local cash match in the amount
of Five Thousand One Hundred forty-nine Dollars;
continuing the Local Law Enforcement Block Grant Trust
Fund and approving the appropriation and expenditure of
the grant funds.
Councilmember Barber moved and Councilmember Wagner
seconded to introduce and adopt of Ordinance No. 5083.
MOTION CARRIED UNANIMOUSLY. 7°0
B. Resolutions
1. Resolution No. 2912
O1.7
A Resolution of the City Council of the City of Auburn,
Washington, authorizing the Mayor and City Clerk to execute
a Professional Services Contract with FA Enterprises Health
Page 11
City of Auburn Council Meetinn Minutes March t6, 1998
Care Delivery Systems for the provision of medical and
dental health care to those persons in the City of Auburn
detention facility.
Councilmember Poe moved and Councilmember Cerino
seconded to adopt Resolution No. 2912.
MOTION CARRIED UNANIMOUSLY. 7-0
2. Resolution No. 2926
A3.16.9
A Resolution of the City Council of the City of Auburn,
Washington, authorizing the Mayor and City Clerk to execute
Auburn Participation Agreement with M. A. Segale for the
purpose of sharing the cost of the construction of a fence
along common property line.
Councilmember Wagner moved and Councilmember Cerino
seconded to adopt Resolution No. 2926.
MOTION CARRIED UNANIMOUSLY. 7-0
3. Resolution No. 2931
A Resolution of the City of Auburn, Washington, authorizing
the Mayor and City Clerk of the City of Auburn, to execute
an Interlocal Agreement between the cities of Auburn and
Federal Way concerning assumption of Lakehaven Utility
District.
This item was transmitted as an Agenda Modification.
City Attorney Michael Reynolds noted two items of
correspondence received in the Auburn City Attorney's office
today as transmitted under correspondence items II.C.2 and
II.C.3 of these minutes
Mayor Booth invited any comments or suggestions regarding
Resolution No. 2931.
Mary Gates, City of Federal Way Councilmember and former
Mayor of Federal Way, 33530 1 st Way South, Federal Way.
Councilmember Gates commented that the Interlocal
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City of Auburn Council Meetin,{3 Minutes March 16, 1998
Agreement contemplates a cooperative relationship between
the cities of Auburn and Federal Way regarding the
provision of water and sewer services. Ms. Gates feels
strongly about retaining the necessary resources for the City
of Federal Way and cities in general.
Ms. Gates intimated that Lakehaven has acknowledged it
will run out of firm water in 1999 and has agreed to an
interruptible source of water with Tacoma which will last until
the year 2010. She feels the City of Federal Way is better
regionally positioned to provide water and sewer ser~jices.
Ms. Gates expressed concern regarding land use
development and water availability, the deferred
maintenance of utilities, the discharge of untreated sewage
into the Puget Sound by Lakehaven last year and the age of
Lakehaven comprehensive sewer and water plans, and
failing asbestos pipes. The Interlocal Agreement commits to
provide water and sewer at reasonable rates and commits
Federal Way to not assess a surcharge or a utility tax to
those Auburn residents served by the utilities. It will also
insure continuation of water and sewer service to Auburn
residents if the Boundary Review Board approves the
assumption. Ms. Gates urged the Council to adopt
Resolution No. 2931. Ms. Gates announced there were
other City of Federal Way Councilmembers present as well
as Director of Public Works Cary Roe, City Attorney Londi
Lindell, and Assistant City Attorney Bob Sterbank.
Councilmember Borden questioned whether any changes in
residential water rates would result frorkl the Agreement. Ms
Gates stated that rates would not change under either
scenario, but the Interlocal Agreement would guarantee no
surcharges and no utility tax would be assessed.
Blair Burrouahs, Lawler and Burroughs, 4750 First Interstate
Center, 999 Third Avenue, Seattle, Washington.
Mr. Burroughs indenti~ed himself as the representative for
Lakehaven Utility District with regard to the proposed
assumption. He advised that Lakehaven General Manager
Don Perry and some members of the Board are in the
audience and available for questions. Mr. Burroughs agreed
that under the Growth Management Act, in general, cities
Page 13
City of Auburn Council Meetinn Minutes March 16, '1998
are the appropriate provider for sewer and water services.
Lakehaven Utility District has been in business for fifty years
and is a regional provider whose boundaries are dictated by
an agreement with the South King County Water Purveyors.
The District provides services to a total of seven cities
including the City of Auburn. Mr. Burroughs contended that
assumption of the District is not appropriate. He conveyed
that Lakehaven is not going to run out of water as they have
firm commitments well past the year 2000 to provide water
to the region. Mr. Burroughs pointed out that Lakehaven
has no incentive to discriminate or favor one group over
another in regards to giving out water availability certificates.
He contended that if the utility is controlled by the City of
Federal Way, it is logical that it would favor those who are
within their sphere of influence. Mr. Burroughs noted that if
Auburn enters into an Interlocal Agreement with the City of
Federal Way, Auburn would be permitting Federal Way into
Auburn's sphere of influence. Lakehaven submits this would
not be in Auburn's best interest. Mr. Burroughs advised that
if dissatisfied with Lakehaven, Auburn would have the right
to assume the jurisdiction of the water system on the
plateau, whereas this would not be the case if the City of
Federal Way assumes the utilities. Mr. Burroughs confirmed
a suit was filed related to the right of individuals to vote
within the jurisdiction on the assumption. The District
requested Federal Way submit the assumptior, to a vote of
the residents. Lakehaven failed in the first round of
litigation, but is appealing. Mr. Burroughs pointed out the
City of Federal Way has not done a feasibility study, nor
developed a business plan for running the utilities.
Mr. Burroughs requested Council study the issue and asked
Council to act in the best interest of its citizens.
Councilmember Wagner requested the City of Federal Way
to explain the time sensitiveness of the Interlocal
Agreement.
Bob Sterbank, Assistant City Attorney, City of Federal Way.
Mr. Sterbank explained the City of Federal Way will proceed
before the Boundary Review Board (BRB) next Monday,
March 23, 1998. Statutes that provide for assumption state
Page 14
City of Auburn Council Meetin;I Minutes March 15,
a city can operate within another city only with an agreement
with that city. Therefore City of Federal Way cannot go
forward before the BRB unless Federal Way has an
agreement to serve Auburn residents.
Mr. Sterbank advised that choosing not to enter into the
Agreement with Federal Way could affect the rates for
Auburn residents and residents of Auburn's potential
annexation area (PAA).
Councilmember Singer asked if City of Auburn would not be
able to enter into an Interlocal Agreement with City of
Federal Way after the decision was made by the Boundary
Review Board.
Mr. Sterbank responded the City would make the same offer
presented this evening. The Agreement proposed is
designed so that the City of Auburn would have the
opportunity to take over the facilities in Auburn and its
potential annexation area upon notification to the City of
Federal Way.
Councilmember Cerino noted that in the letter from Lawler
and Burroughs, they contend a City cannot contract away its
ability to levy a utility tax. He requested Mr. Sterbank's
opinion on that point of the letter.
Mr. Sterbank indicated that the City of Federal Way's
perspective was that state law does provide for contracts of
this sort to be enforceable according to a Supreme Court
decision.
Mr. Burroughs insisted that a promise not to impose the
utility tax is not enforceable.
In response to questions from Councilmember Poe, Mr.
Burroughs advised approximately 70,000 Federal Way
residents are served by Lakehaven of a total of 105,000
customers. Mr. Burroughs noted the cities of Pacific,
Edgewood and Milton have either declined or deferred
entering into an Interlocal Agreement. He suggested
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City of Auburn Council Meetin.q Minutes March 16, 1998
Federal Way should have done a feasibility study and
business plan before proceeding.
Mr. Burroughs advised in meeting the 60% threshold the
City of Federal Way has the authority to assume the district
within their boundaries and unincorporated areas in King
County, but cannot assume other cities' jurisdictions without
their consent.
Councilmember Wagner asked Mr. Burroughs to expand on
the potential sources of secure water resources for
Lakehaven.
Mr. Burroughs advised that Lakehaven has negotiated an
agreement with Tacoma for water resources and will meet
its commitments.
In response to questions from Councilmember Borden, Mr.
Burroughs explained that since Federal Way exceeds the
60% threshold for assumption, they can assume the district
within Federal Way and unincorporated King County up to
City of Auburn city limits, assuming approval from the
Boundary Review Board.
Councilmember Borden stated it seemed prudent to enter
into the Interlocal Agreement before assumption occurs.
Mr. Burroughs explained the Boundary Review Board must
determine whether or not the proposal creates or preserves
logical service areas. He further stated the Interlocal
Agreement would break up the continuity of the service area
as it now stands and would allow the City of Federal Way to
extend its sphere of influence into Auburn. Lakehaven
believes that without the Agreement of all the surrounding
cities, the Boundary Review Board will deny the assumption
proposal because it will fragment the District.
Mr. Sterbank spoke in favor of the Interlocal Agreement to
ensure continued service to Auburn residents and residents
in the Auburn PAA.
Page 16
City of Auburn Council Meetin,el Minutes March t6, 1998
Councilmember Cerino requested a staff presentation on the
proposed assumption.
Utility Engineer Dwight Holobaugh used a map to show the
areas in question. Mr. Holobaugh emphasized that the City
of Auburn staff has been diligent in trying to remain neutral
regarding whoever will be the service provider for the
Auburn west hill area. City staff have been working with
Lakehaven on an agreement regarding the west hill
involving an intertie and water wholesale provision
concurrent with an assumption agreement that would set the
guidelines and intent on which the PAA would come to
Auburn. The Agreement with Federal Way at issue tonight
would in effect set an intent similar to the Agreement with
Lakehaven.
Cary Roe, Director of Public Works, City of Federal Way.
Mr. Roe offered a GIS Lakehaven Utility District Sewer
Infrastructure map for detail and explanation.
Utility Engineer Holobaugh pointed out that Auburn residents
comprise only 2% of the Lakehaven sewer customers and
4.5% of their water customers.
Councilmember Wagner moved to adopt Resolution 2931
and Councilmember Cerino seconded.
Councilmember Wagner reiterated that the City wished to
remain neutral and ensure service to Auburn residents.
Councilmember Poe questioned the necessity for adopting
Resolution No. 2931 this evening,
Mr. Sterbank of Federal Way advised that Lakehaven will
argue before the BRB that inaction by the City supports their
position against assumption. The Interlocal Agreement
provides an effective date as the effective date of
assumption.
Mr. Burroughs reiterated that other cities have delayed
action on the Interlocal Agreement pending further study.
Page 17
City of Auburn Council Meeting3 Minutes March t6, 1998
In response to questions from Councilmember Wagner, Mr.
Sterbank advised that the law allows the City to resubmit
their proposal for assumption if it is not approved by the
BRB on Monday. However, the Federal Way City Council
has committed to the BRB's decision.
Councilmember Borden questioned whether the Auburn City
Council believes that cities are the appropriate entity to
provide this type of service versus a utility district. She
spoke in favor of proceeding with an agreement with Federal
Way.
In response to Councilmember Cerino's questions, Mr.
Sterbank explained that Federal Way would be subject to a
right-of-way use franchise or right-of-way use permit to
maintain utility lines. The City of Federal Way would be
better able to coordinate city programs with the assumption
of the utility.
Councilmember Poe concurred with Councilmember Borden.
However, he expressed concern with some provisions of the
Agreement and requested an opportunity to review the
Agreement further.
Councilmember Wagner concurred with Councilmember Poe
that there are items that need to be modified in the
Agreement. He questioned the time sensitivity of the
Agreement.
Councilmember Cerino expressed concern with paragraph
eight of the Agreement relating to how the customers would
be treated and the water rates that could be charged.
Councilmember Lewis asked for clarification on whether
there are different classes of rates within the Lakehaven
District.
Beverly Twill, Commissioner of Lakehaven Utility District,
responded that there are not.
Councilmember Poe suggested that paragraph ten on page
two needs to be re-worded to clarify its intent.
Page 18
City of Auburn Council Meetin.q Minutes March 16, 1998
Councilmember Wagner withdrew his motion to adopt
Resolution No. 2931 and Councilmember Cerino consented.
Councilmember Wagner moved and Councilmember Poe
seconded to return Resolution No. 2931 to the next Public
Works Committee for further review
Councilmember Cerino commented that he agreed with
Councilmember Borden's comments and expressed regret
that the Agreement was not in a form that could be adopted
this evening.
Councilmember Barber noted that by sending the Resolution
back to the Public Works Committee the time frame would
be missed for the Boundary Review Board.
Mr. Sterbank advised that the City of Federal Way will
discontinue the assumption if they are not successful with
the Boundary Review Board.
Mr. Roe advised that due to the substantial financial costs of
litigation and staff time Federal Way will not resubmit their
assumption proposal if the BRB denies their request. He
requested the Council review, amend, and adopt the
Resolution this evening.
Hearing that Federal Way does not plan to resubmit its
proposal for assumption if it is not successful before the
BRB on Monday, Councilmember Wagner suggested the
City Council amend the Agreement and vote on the
Resolution this evening.
Councilmember Cerino suggested amending the last
sentence of paragraph 8 on page 5 to read as follows:
"Federal Way shall not impose a surcharge upon Auburn
ratepayers in excess of any surcharge upon any other
ratepayers being served by Federal Way." Mr. Sterbank
indicated the change would be acceptable to Federal Way.
In response to questions from Councilmember Roe, Mr. Bob
Sterbank advised that the City of Auburn could initiate an
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City of Auburn Council Meetincl Minutes March 16, 1998
assumption of the portion of Lakehaven Utility District
presently within the Auburn city limits. The City of Federal
Way is entitled to invoke a slightly different provision of the
law because Federal Way has more than 60 percent of the
population and assessed valuation. Federal Way can
assume more than that which is within their own boundaries
with the approval of the BRB.
Utilities Engineer Holobaugh reiterated that the City of
Auburn can only assume those portions of the Lakehaven
Utility District within the existing Auburn city limits and
cannot assume the area within Auburn's potential
annexation area since Auburn comprises only two to four
percent of the utility district.
Mr. Burroughs cautioned that the assumption is a complex
issue which deserves more study.
Councilmember Wagner suggested replacing the word
"appropriate" in the last sentence of item 11 on page 2 with
the word "allowed". He also suggested inserting "Federal
Way" after the word "desire" in the second line of item 10 on
page 2; and inserting the word "potential" after the words
"prior to" in item 13 on page 2. Co,'~ncilmember Wagner
agreed with Councilmember Cerino's suggestion to modify
paragraph 8. From the audience, Federal Way City Attorney
Londi Lindell indicated approval of the proposed
amendments.
Councilmember Lewis proposed amending item 12 on page
2 to read, "Federal Way agrees to provide water and sewer
service to Auburn ratepayers at a roasonablo rato at the
same rate as Federal Way ratepayers, with no surcharge or
tax attributable to Auburn residents solely due to their
residency; and". Federal Way City Attorney Londi Lindell
accepted the proposed amendment.
Councilmember Lewis suggested amending line 3 of
paragraph 8 on page 5 to read in part: ".. . ratepayers
residing in Auburn or in Auburn's PAA at a roac, onablo rato
at the same rate as Federal Way ratepayers that . . ."
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City of Auburn Council Meetin~3 Minutes March 16, 1998
Federal Way City Attorney Lindell agreed to the proposed
amendment.
Councilmember Wagner withdrew his motion to return
Resolution No. 2931 to the Public Works Committee.
Councilmember Poe consented.
Councilmember Wagner moved and Councilmember Cerino
seconded to adopt Resolution No. 2931 with the following
amendments:
The last sentence of paragraph 8 on page 5 to read
as follows: "Federal Way shall not impose a
surcharge upon Auburn ratepayers in excess of any
surcharge upon any other ratepayers being served by
Federal Way."
Replace the word "appropriate" in the last sentence of
item 11 on page 2 with the word "allowed".
Insert "Federal Way" after the word "desire" in the
second line of item 10 on page 2.
Insert the word "potential" after the words "prior to" in
item 13 on page 2.
Amend item 12 on page 2 to read, "Federal Way
agrees to provide water and sewer service to Auburn
ratepayers at 3 reasonable rate at the same rate as
Federal Way rateDayers, with no surcharge or tax
attributable to Auburn residents solely due to their
residency; and".
Amend line 3 of paragraph 8 on page 5 to read in
part: "... ratepayers residing in Auburnor in Auburn's
PAA at a reaconable rate at the same rate as Federal
Way ratepayers that ..."
MOTION CARRIED. 5-2. Councilmembers Poe and Lewis
voted no.
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City of Auburn Council Meetin~ Minutes March 16, 1998
VIII. MAYOR'S REPORT
A. Executive Session
Mayor Booth recessed the meeting at 9:30 p.m. for approximately
20 minutes in order to discuss real estate and personnel issues.
He indicated no action is anticipated following the executive
session.
Mayor Booth reconvened the meeting at 10:45 p.m.
IX. ADJOURNMENT
There being no further business to come before the Council this evening,
the meeting adjourned at 10:45 p.m.
Approved on the ~ ~ day of ~,~ .J ,1998.
Charles A. Booth, Mayor Danielle Daskam, City Clerk
98M03-16
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