HomeMy WebLinkAbout04/23/2002 Adjourned Business Meeting 12
CITY OF YAKIMA, WASHINGTON
ADJOURNED BUSINESS MEETING OF THE CITY COUNCIL
APRIL 23, 2002 - 2:00 P.M.
COUNCIL CHAMBERS - CITY HALL
1. ROLL CALL
Present:
Council: Mayor Mary Place, presiding, Council Members Clarence Barnett,
Lynn Buchanan, Paul George, Larry Mattson (present after 2:10 p.m.),
John Puccinelli, and Bernard Sims
Staff: City Manager Zais, City Attorney Paolella and City Clerk Roberts
2. INVOCATION /PLEDGE OF ALLEGIANCE
Council Member Puccinelli gave an invocation, followed by the Pledge of Allegiance
led by Council Member Barnett.
3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER
There was no discussion for the good of the order.
4. EXECUTIVE SESSION REGARDING PENDING LITIGATION (ALLOW APPROXIMATELY
20 MINUTES)
BUCHANAN MOVED AND GEORGE SECONDED TO MOVE INTO EXECUTIVE
SESSION FOR APPROXIMATELY THIRTY MINUTES. FOR THE PURPOSE OF
DISCUSSING PENDING LITIGATION. The motion carried by unanimous voice vote.
Council returned to open session at 2:38 p.m.
5. CONSIDERATION OF INTERIM POLICY OPTIONS FOR OUTSIDE UTILITY
SERVICES
• Staff Presentation and Discussion
City Manager Zais stated the purpose of this meeting is to discuss the impact of the
Supreme Court decision on the petition method of annexation and how it affects the
City's Outside Utility Agreement (OUA). The OUA policy has been in place for almost
forty years. The recent Supreme Court decision invalidated the petition method for
annexation on a Constitutional basis. When we learned about the decision we
determined we did not have enough information to make a recommendation to the
Council about the city's policy, and thus, instituted an administrative hold for 30 days
on the issuance of outside utility connections to do the legal research. Last Thursday
we filed a motion for reconsideration. Other briefs in support of our motion will be filed
by several organizations, including the State Attorney General's Office. The briefs ask
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APRIL 23, 2002 — ADJOURNED MEETING
for clarification and reconsideration of the case and prospective ruling of the decision
regarding annexations made by the cities in Washington. We also requested a stay to
enable us to work towards a legislative solution. It is important for us to foster growth
and annexation. The options we have outlined are in the memo that Bill Cook will
present.
Bill Cook, Director of Community and Economic Development, reviewed three options
prepared for Council consideration:
Option One:
• Provide outside utility service throughout the Yakima Urban Growth Area but
with no expectation of future annexation
Option Two:
• Provide outside utility service to property owners with existing agreements or
permits issued by the City and County; and
• Extend utility services to new customers without such agreements or permits
only upon annexation
Option Three:
• Provide outside utility service to property owners with existing agreements or
permits issued by the City and County; and
• Extend utility services to new customers without such agreements or permits
only upon annexation; and
• Extend outside service for imminent health emergencies
Staff recommends Option Three be approved, under which there is an estimated 1,000
buildable lots that could be served.
Council Member Puccinelli queried why the requirement of signing a modified
agreement couldn't be included in Option One and let property owners who have not
filed for a permit or signed a previous agreement be served.
Conrad Liegel, legal consultant with Preston Gates Ellis, reviewed the City's policy of
serving property in the unincorporated area. Historically, the policy has allowed sewer
connection if the property was annexed to the city or the property owner promised to
annex to the city when asked. The primary method of annexation was accomplished
by petitions. The Supreme Court decision has declared unconstitutional the petition
method of annexation, leaving the election method of annexation. Without the petition
option, there is no method for the property owner to commit to annexation in the future.
A property owner could sign an outside utility agreement, but we know that would only
be effective if it turns out that another annexation method .(other than election) is made
available. The other option is to stand behind the current policy, but recognize that we
are now left with one condition, and that is to require annexation now. We could
continue to honor the agreements with existing customers but with respect to the
future, we will provide service only if they annex through the election method. The
City, along with others, submitted briefs asking the court to reconsider its decision and
to clarify its decision.
Council Member Puccinelli expounded on his view that everyone should be treated the
same, whether or not they had previously signed an OUA or some other commitment.
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APRIL 23, 2002 — ADJOURNED MEETING
City Manager Zais stated that the staff recommendation includes a time line of sixteen
months that the interim policy would be in effect. Council Member Buchanan stated
Council could re- examine that decision at any time.
• Comments from the Audience
Pat Strusssel, United Builders, commented that he appreciates the fact that all the
options being considered include honoring existing OUAs. He urged Council to pass
legislation in one form or another that honors these OUAs, particularly since it would
affect their Orchard Pointe project, which provides good jobs for about 40 people
(several citizens who work for United Builders stood up in support of Mr. Strussel's
comments). He believes the City is obligated to follow . through with connections on
existing plats and agreements.
Jamie Carmody, attorney, spoke representing three clients and himself:
• Apple Tree: He agreed with the proposal on Apple Tree in allowing the
connections. In this case where bonds were issued, by not allowing connections
the City could be placed in a position to buy back the bonds..
• Sierra Estates Development: This development falls into the group that has pre -
paid its connection charges and that situation was recognized in policy option
two.
• Cottonwood Grove, Rich Hochrein development: This development has received
preliminary plat approval. The City agreed verbally to provide service and based
upon that the project went forward and was approved. Any property that fits in
that category should be recognized.
Lastly, he spoke about his thoughts on this issue. He believes we have a regional
sewer system designed to serve Terrace Heights, Union Gap, and the unincorporated
area. The Department of Ecology has a rule that demands hookup to the sewer if the
property is in an urban area and a septic system won't be allowed. The sewer rate
structure is a huge incentive to annex to the city. Speaking to the recommended
option, he asked how significant is the number that this policy would exclude? He said
that they could still be asked to sign an outside utility agreement. Council Member
Puccinelli opined that the value of the property adjacent to the sewer trunk line just
increased and those properties not adjacent to the line just got devalued. Council
Member Buchanan stated that the citizens of Yakima paid to extend the sewer line and
will hopefully be reimbursed when property owners connect to that line. Mr. Carmody
pointed out that if you don't allow anyone to hookup to the sewer, you will lose
revenue.
Doug Rich, Prestige Realty, agreed with Option 3, but feels it needs a sunset clause to
make sure the policy is temporary. We need a comprehensive longer -term policy.
Another point is that when we are looking for development property or are asked by a
property owner to develop their property, the realtor will rely on information at hand
and when that information is a moving target then the buyer will lose trust in what we
are able to come up with. We, as a community, do have a responsibility under the
Growth Management Act to manage our growth.. He looked at the issue of "duty to
serve" and doesn't know if the full duty to serve falls on the city; it may fall on the 4-
party agreement. We need to take aggressive steps to get a more permanent policy.
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APRIL 23, 2002 — ADJOURNED MEETING 15
• Council Action -
GEORGE MOVED AND BUCHANAN SECONDED TO APPROVE OPTION THREE.
(Option Three is:
A. Provide outside utility service to property owners with existing agreements or
permits issued by the City and County; and
B. Extend utility services to new customers without such agreements or permits only
upon annexation; and
C. Extend outside service for imminent health emergencies)
BUCHANAN MOVED AND SIMS SECONDED TO AMEND THE MOTION TO
INCLUDE COUNCIL LOOKING AT THE ISSUE AS SOON AS EITHER A LEGAL OR
LEGISLATIVE SOLUTION IS FOUND OR NOT TO EXCEED SIXTEEN MONTHS.
The motion carried by unanimous voice vote.
The question was called for the vote on the motion as amended. The motion
carried by 6 -1 roll call vote; Puccinelli voting nay. Council Member Puccinelli stated he
likes the fact that the commitments are being honored; but he sees no difference in the
people who have already made a commitment and those that would have liked to have
that same opportunity. Council Member George commented that this is an interim
agreement. He agrees with Council Member Puccinelli that it allows Council to honor
existing commitments, but it also preserves the use of annexation for future growth.
6. OTHER BUSINESS
There was no other business discussed.
7. ADJOURNMENT TO MAY 7, 2002 AT 7:30 A.M. IN THE COUNCIL CHAMBERS
FOR STUDY SESSION ON STATE DEPARTMENT OF TRANSPORTATION
PROJECTS
BUCHANAN MOVED AND SIMS SECONDED TO ADJOURN THIS MEETING TO
MAY 7, 2002 AT 7:30 A.M. FOR A STUDY SESSION IN THE COUNCIL
CHAMBERS. The motion carried by unanimous voice vote.
The meeting adjourned at 3:37 p.m.
READ AND CERTIFIED ACCURATE BY:
CIL MEM: /►ATE � —
COUNCIL MEMBER DATE
ATTEST:
°/*1. e j - .4(e-i..e
CITY CLERK MARY PLACE, MAYOR
Minutes prepared by Karen Roberts. An audio and video tape of this meeting are available in the City Clerk's Office
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