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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 Page1 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. Page 2 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 Page 3 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, Page 4 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 Page 5 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. Page 6 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. Page 7 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. Page 8 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 Page 9 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 Page 10 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 Page 12 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 Page 15 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 Page 19 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 . . ." Page 20 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. Page 21 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 Page 22