Council MIN 10-21-1997 Regular
FEDERAL WAY CITY COUNCIL
Re~lar Meetif!g
Council Chambers - Cíty Hall
October 21, 1997 - 7:00 p.m.
MINUTES
I.
CALL MEETING TO ORDER
Mayor Priest opened the regular meeting of the Federal Way City Council at 7:05 p.m., in Council
Chambers, City Hall, Federal Way, Washington.
City Council present: Mayor Mahlon "Skip" Priest, Deputy Mayor Hope Elder; Councilmembers
Michael Park, Ron Gintz and Phil Watkins and Jack Dovey. Mary Gates' absence was excused.
City Staff present: City Manager Ken Nyberg, Deputy City Manager Philip Keightley, City
Attorney Londi Lindell, City Clerk Chris Green and Deputy City Clerk Bob Baker.
II.
PLEDGE OF ALLEGIANCE
Bob Kellogg led the flag salute.
III.
PRESENTATION
Plannin¡r Commissioner Introductions
Councilmember Watkins presented Certificates of Appointment to Karen Kirkpatrick, Planning
Commissioner and William Drake, Alternate.
IV.
CITIZEN COMMENT
Lynda Jenkins spoke in favor of negotiating a lease agreement with the Historical Society to
manage the Fisher's Pond residence for the purpose of providing a parks interpretive center and
Historical Society services.
Doug Smith, SeaTac Mall, spoke of concerns regarding the non-conformance council bill
currently before the Council. The concerns relate to tenant improvements and proportional
methods of compliance. He presented Council with copies of correspondence to the Land
Use!Transportation Committee dated September 15 and October 6 relative to these issues.
OR I GINAL
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21, 1997 - PAGE 2
Keith Dearborn, Counsel to Ed Dunn, Jr., also spoke regarding the non-conformance council bill
currently before the Council. He stated the more he learns about the proposed ordinance, the
more worried he gets. He stated redevelopment costs for the Dunn Lumber building currently
exceed 50% of the valuation of the site.
Alison Corrigan, on behalf the Chamber of Commerce Board of Directors, thanked all for the
recommended changes to the non-conformance code. She asked the Council to also review codes
as they relate to water quality and street improvements. She asked for two changes - I) utilize a
proportional improvement requirement; and 2) eliminate tenant improvements as a trigger for
water quality.
Ed Stewart spoke in favor of Phil Watkins' no vote on the issue of the Lakehaven assumption.
He urged other council members to listen to the public and change their votes. He stated it is a
lot easier to "talk about it than do it."
V.
CONSENT AGENDA
a.
b.
c.
d.
Minutes/October 7 1997 - Re¡¡:ular Meeting Minutes
Civic Theatre Bid Award
Scholarships & Fee Reduction
Steel Lake Park Operations Building Roof Bid Award
National Maintenance Contractors Amendment
Skyhawks Sports Academy Contract
Council Bill #179/Gambling Tax Code Amendment/Enactment Ordinance
APPROVED ORDINANCE #97-301
King Conservation District!Re¡¡ional Needs Assessment
Historical Society BuildinglFishers Bog
Street Poli¡;y Guidelines
e.
f.
g.
h.
i.
j.
COUNCILMEMBER DOVEY MOVED APPROVAL OF THE CONSENT AGENDA ITEMS
AS PRESENTED; second by Councilmember Gintz. The motion carried as follows:
VI.
Priest
Gates
Gintz
Dovey
Elder
Watkins
Park
yes
excused absence
yes
yes
yes
yes
yes
ORDINANCES
a.
Council Bill # 180/Lakehaven Utility District AssumptionlEnactment Ordinance
APPROVED ORDINANCE #97-302
CITY COUNCil. REGULAR MEETING
MINUTES - OCT. 21,1997 - PAGE 3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY, WASHINGTON, RELATING TO AND PROVIDING FOR THE
ASSUMPTION OF JURISDICTION OF THE ASSETS, FACILITIES AND
OPERATIONS OF LAKEHA YEN UTILITY DISTRICT, A MUNICIPAL
CORPORATION, PROVIDING FOR THE FUTURE CREATION OF A
WATER AND SEWER UTILITY BOARD AND PROVIDING THAT NO
WATER OR SEWER UTILITY TAX SHALL BE IMPOSED ON NON-CITY
RESIDENTS, TO THE EXTENT AUTHORIZED BY LAW, AND THAT NO
WATER OR SEWER UTILITY TAX SHALL BE IMPOSED ON CITY
RESIDENTS WITHOUT A MAJORITY VOTE OF SUCH RESIDENTS, TO
THE EXTENT AUTHORIZED BY LAW.
Deputy City Clerk Bob Baker conducted a second reading of the Council Bill. The ordinance
agenda bill noted the Law & Public Works Departments had made certain minor revisions to the
ordinance between the first and second readings.
Mayor Priest asked for clarification on SEP A issues ITom Community Development Services
Director Greg Moore. As the City's responsible official for administration of the State
Environmental Policy Act, Mr. Moore rendered a brief explanation relative to the City's SEP A
review. As part of the assumption, he was asked to determine ifSEPA review was required. He
reviewed the environmental documents of the proposed assumption of 1993 & 1994. A decision
was made at that time that an assumption is categorically exempt ITom review. Even ifit were not
exempt there would be no significant impact that was found. He determined no additional review
is required since the current, proposed assumption is the same as the previous one -- the City is
merely assuming and consolidating the District with no adverse environmental impact.
Mr. Moore also explained an addendum adds information about a specific project. While
preparing the SEP A decision, he concluded an addendum is not required; can be prepared at any
time during the process and is not appealable. Because of this, an addendum would serve no
purpose at this time.
MAYOR PRIEST MOVED TO AMEND PAGE 14, ADDING SECTIONS 12 & 13, AND
RENUMBERING SUBSEQUENT SECTIONS ACCORDINGLY, as follows:
Section 12. Water Supply. Upon the effective date of assumption, the City Manager and staff are
directed to take all steps necessary, in the manner provided by law, to conclude negotiations with
the City of Tacoma, the City of Auburn, or any other entity in order to secure a firm, permanent
water supply, at a reasonable rate, sufficient to meet the needs of the City of Federal Way as
planned for in the City's Growth Management Act Comprehensive Plan. Such steps may include,
but are not limited to, arranging for City of Federal Way financial participation in Tacoma's
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21, 1997 - PAGE 4
construction and operation of the Second Supply Pipeline, or arranging City of Federal Way's
financial participation in Auburn's construction and operation of the Auburn intertie.
Section 13. Operation and maintenance of District's Water and Sewer System From and after
the effective date of assumption, the city shall maintain and operate all of the facilities of the
District's water and sewer system, whether located within the City or outside the City, except as
may be provided otherwise under Section 11 above, or except those which the City Manager or
his or her designee determines are unnecessary to operation of the overall water and sewer
pumping stations, electronic warning systems, sewage treatment plants, water lines, water tanks,
pressure relief valves, and all other facilities and equipment now or hereafter constructed as
necessary to continue to furnish water and sanitary sewer service. Further the City Manager and
staffare directed to take all necessary steps, in the manner provided by law, to comply with
Environmental Protection Agency drinking water requirements, and to remedy existing
maintenance backlogs. This may include, but not be limited to, implementation of drinking water
disinfection, timely replacement of asbestos-concrete water mains, institution of a comprehensive
infiltration and inflow removal program, and implementation of water line corrosion control
mechanisms.
The motion was seconded by Councilmember Dovey. The motion carried as follows:
Priest
Gates
Gintz
Dovey
yes
excused absence
yes
yes
Elder
Watkins
Park
yes
yes
yes
COUNCILMEMBER GINTZ MOVED ADOPTION OF THE ORDINANCE AS AMENDED;
second by Councilmember Dovey.
Discussion ensued with Mayor Priest responding to comments made earlier. He stated the City is
not moving forward too quickly with this issue. It has been carefully considered. He thanked Mr.
Atkin for all information received.
Next, he asked Ms. Lindell to respond to and provide information regarding the issue ofa
memorandum fÌ'om the District's outside legal counsel claiming that an election might be required.
City Attorney Londi Lindell has reviewed a letter prepared by George Mack, on behalf of the
District. The letter contains a legal opinion stating, "probably a vote would be required if the City
were to proceed forward with the assumption of the District." Ms. Lindell has reviewed the
statutes referred to by Mr. Mack and with all due respect, strongly disagrees with his legal
conclusions.
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21, 1997 - PAGE 5
Ms. Lindell raised three points which aided her in her conclusion. First, the statute the District
relied upon does not apply to assumption actions. The statute the District relied upon stems fÌ"om
a turn-of-the-century law which originally allowed cities to provide water and sewer as well as
other utility services. The assumption statute was adopted in 1971 and deals specifically with
how to proceed with an assumption action of an existing special purpose district. Second,
Washington courts have long held that a specific statute will control over a more general statute
when two statutes cover a similar subject. Even if the District were successful in arguing that
somehow the statute applies; the assumption statute, RCW 35. 13 A, is the specific statute dealing
with assumption actions and it would control over the more general statute that deals with the
purchase of other types of utilities. Thus, no election is required for an assumption. The election
statute is to protect public funds fÌ"om the purchase of a new utility, and does not cover a city
merely stepping in the shoes of an existing special purpose district -- what the City is
contemplating doing. An assumption action might actually save the ratepayers money vs. costing
additional dollars. Third, Ms. Lindell raised the point that the District has never raised this issue
in the past. It's interesting to note that the District has been a strong supporter of the last
legislative session senate bill that was vetoed by Governor Locke which would have required an
election prior to an assumption of a special purpose district. The point being -- why would the
District lobby for a bill if the law currently required such an election. Therefore, Ms. Lindell's
legal conclusion is that an election is not required.
Mayor Priest said he had called MRSC who agreed with the City's legal conclusion. An MRSC
attorney then faxed Mayor Priest something fÌ"om WFOA which discussed the procedure for
sewer and water district assumptions. The attorney who prepared the analysis and "blue print" of
procedures on assumption was Michael Rourke, fÌ"om Inslee Best. Mr. Ruark was Lakehaven's
lead attorney on the assumption action in 1993.
Mr. Gintz shared some thoughts he wrestled with for some time. He stated several reasons have
been raised this evening to proceed with the assumption in order to ensure future water supply
and maintaining basic water and sewer systems. He also spoke of the need to say something
about the fact the Commission has been involved in such items as political infighting, including
hiring a private investigator to tail a Commissioner; allegations of conflict of interest, sexual
harassment and blackmail. With these items occurring and with the amount of work at hand, a
concern exists --whether or not the Commissioners will have time to deal with and/or settle the
problems. In addition to other publicly stated issues, the Commission (either as a Board, or
individually, has:
.
demoted and fired a General Manager and assumed management of the District
themselves.
formed a litigation task force to meet in secret to strategize and fight the City's
assumption of the District
.
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21, 1997 - PAGE 6
~
hired a new General Manager and fired him, which then resulted in a damage claim
being filed against them
had sexual harassment and blackmail charges filed against them
debated proper procedures and ethics of campaign contributions
engaged in questionable contract award procedures
hired a private investigator to follow a fellow commissioner
have been unable to answer questions about deferred maintenance
have kept rates artificially low as a political bargaining chip
have called manager applicants "fools" to want to take the vacant position
had the top 2 candidates for General manager reject their offer of employment
admitted to "dreading" attending Commission meetings
caused ratepayers to pay for employees after they were terminated under "poison
pill" contracts. . . a recent resolution gave employees a 3-year contract as litigation
tactic...these contracts are inconsistent with good business planning-ability to
layoff for economic necessity or any other reason
commissioners have referred to themselves as a "political sideshow"
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Things are not getting better as hoped for the last time the City considered an assumption action.
He stands firm and believes the Council will stand firm on the assumption action.
Mr. Gintz made all these statements "as respectfully" as possible as the Commissioners are all
good people. They've become entangled in personalities that have not moved the District
forward and have not allowed for appropriate planning. Thus, he will vote in favor of the
ordinance.
Councilmember Watkins recited his logic for voting no on this issue. He reminded his colleagues
to be hesitant when criticizing real or imagined personal flaws of individuals. As to the policy
aspects of this item, Mr. Watkins is voting no for three reasons. First, he doesn't think the City
Council and City government can meet the challenges any faster or more effectively than the
District at this time. Second, as to future water needs, the District is negotiating with Auburn and
says that a water source will be contracted by the end of the year. Thirdly, as to maintenance of
the system, if we were to assume Lakehaven, he believes the first thing we would do is hire a
consultant to find out the scope of the problem and to come up with a plan to address the
problem. Lakehaven has already done that. He doesn't think we can do these things any quicker
or better. Finally, Councilmember Watkins stated the concern he has most direct responsibility
for is the good of the City of Federal Way and the people who serve it.
Deputy Mayor Elder, formerly against the assumption, is now in favor of said action. Two things
which motivate her vote are I) new businesses coming to town who need assurance a water
supply can be guaranteed; and 2) the mandate of the Growth Management Act -- whether we like
it, or not, it is the law. This is part and parcel of the participation of the Growth Management
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21, 1997 - PAGE 7
Act. She calls some of the Commissioners mends. She is not basing her vote on personalities but
for the reasons stated above. Water is the most important thing.
Mayor Priest stated two major concerns of the Council are I) future permanent water supply and
2) addressing long term maintenance needs. He also underscored the fact we are paying a utility
tax to the City of Tacoma right now. Some 2,600 to 3,000 residents who are not in the
water/sewer district are paying an 8% utility tax to the City of Tacoma. On the wholesale water
we received ITom the City of Tacoma, as a part of the intertie, we are also paying an 8% utility
tax. This is the result of the District's failure to act appropriately, and get the water situation
under control when it had the opportunity; and that is not on the head of the City Council. The
City Council of Federal Way is not responsible for a utility tax that is now being placed on
everyone one of our residence with monies going to the City of Tacoma for Tacoma streets, parks
& other Tacoma projects. Ifwe would have had an appropriate water supply in the first place, we
would not be paying monies to the City of Tacoma every month.
Councilmember Gintz asked what Auburn charges for a utility tax, as the District is supposedly
negotiating with them at this time for a water supply. City Attorney Lindell answered 4.5%. This
money would go to fund Auburn projects, not Federal Way projects.
The motion to adopt the ordinance as amended carried as follows:
Priest
Gates
Gintz
Dovey
yes
excused absence
yes
yes
Elder
Watkins
Park
yes
no
yes
b.
Council Bill #181/Non-Conforming Code AmendmentslIntroduction Ordinance
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY, WASHINGTON, AMENDING CHAPTERS 16 AND 22 OF THE
FEDERAL WAY CITY CODE, PERTAINING TO LAND USE AND ZONING,
ADOPTING NEW DEFINITIONS, REVISING EXISTING
NONCONFORMANCE PROVISIONS AND CONSOLIDATING THE
REQUIREMENTS FOR PUBLIC IMPROVEMENTS INTO THE
NONCONFORMANCE, ARTICLE IV OF CHAPTER 22.
Deputy City Clerk Bob Baker read Council Bill #181 as presented.
COUNCILMEMBER WATKINS MOVED TO AMEND THE NONCONFORMING USE
PORTION OF THE LAND USE CODE BY I) REMOVING INTERIOR TENANT
IMPROVEMENTS FROM THE DEFINITION OF REDEVELOPMENT AND 2)
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21,1997 - PAGE 8
SUBSTITUTING THE PERCENTAGE THRESHOLDS FOR THE DOLLAR VALUE
THRESHOLDS CONTAINED IN THE PROPOSED ORDINANCE; second by Mayor Priest.
The motion carried as follows:
Priest
Gates
Gintz
Dovey
yes
excused absence
yes
yes
Elder
Watkins
Park
yes
yes
yes
COUNCILMEMBER GINTZ MOVED APPROVAL OF THE PROPOSED ORDINANCE AS
AMENDED; second by Councilmember Dovey. The motion carried as follows:
Priest
Gates
Gintz
Dovey
yes
excused absence
yes
yes
Elder
Watkins
Park
yes
yes
yes
VII. CITY MANAGER REPORT
City Attorney Londi Lindell received a decision fÌ"om Judge Barnett upholding the adult
entertainment ordinance as constitutional. As the judge regarded Mr. Burns claim as "baseless,"
summary judgment was granted.
City Manager Nyberg reported on the recent first anniversary of the Federal Way Police
Department. He had a notebook which contained cards and letters fÌ"om citizens which stated
their support of the department and their appreciation for the service rendered over the last year.
City Manager Nyberg then expressed his sincere appreciation for the fine work performed each
and every day by City staff.
VIII. CITY COUNCIL REPORTS
Councilmember Park
Public Safety/Human Services meeting
Nov. 6 at 5:30 p.m.
Councilmember Watkins
Land Use/Tránsportation meeting
Nov. 3 at 5:30 p.m.
Councilmember Gintz
FinancelEconomic Development meeting
Oct. 23 at 7:30 a.m.
Deputy Mayor Elder reported the Police Department Birthday party was a job well done. She
CITY COUNCIL REGULAR MEETING
MINUTES - OCT. 21, 1997 - PAGE 9
takes pride in the staff. She thanked Cary Roe for his tremendous support over the past 10
months as she served as SCATBd chair.
Councilmember Dovey
Parks & Recreation Committee meeting
Nov. 17 at 8:00 a.m.
Councilmember Dovey also reported Lakegrove Park and Mirror Lake Park are progressing well
and relayed the trails are already being well-used. He thanked all staff and volunteers for their
hard work. He also reported on the new light on 1st Avenue for the BPA Trail.
IX.
ADJOURNMENT
Having no other business to come before the Council, Mayor Priest adjourned the meeting at
8:28 p.m.
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Robert H. Baker
Deputy City Clerk