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HomeMy WebLinkAbout04-21-08 Council Meeting Arlington City Council April 21, 2008 - 7 PM City Council Chambers 110 E. Third SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 1-800-833-8388 (TDD only) prior to the meeting date if special accommodations are required. CALL TO ORDER / PLEDGE OF ALLEGIANCE/ROLL CALL AHS HiQ Team APPROVAL OF THE AGENDA -Amy Spain ~ Snohomish County Tourism Bureau INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS PUBLIC COMMENT For members of the public to speak to the Council regarding matters NOT on the agenda. Please limit remarks to three minutes CONSENT AGENDA 1. Minutes of the April 7, 2008 meeting ATTACHMENT A 2. Accounts Payable 3. Newman Final Short Plat File # PLN20080030 ATTACHMENT B PUBLIC HEARING UNFINISHED BUSINESS NEW BUSINESS 1. Approval of Architectural Contract for Airport Office expansion ATTACHMENT C 2. Resolution No. 771 ATTACHMENT D A Resolution of the City Council of the City of Arlington, Washington, authorizing the acquisition of a self-contained breathing apparatus recharge system, based on an agreement with the County of Los Angeles, California from Bauer Compressors, Inc., as authorized under RCW 39.34.030 3. Olympic Place Retirement/and Assisted Living Community ATTACHMENT E request for appeal of current water and sewer rates 4. Authorize the Mayor to sign the Construction Contract and FAA Grant ATTACHMENT F for the 2008 AIP Projects DISCUSSION ITEMS INFORMATION MAYOR’S REPORT ADMINISTRATOR & STAFF REPORTS COUNCIL MEMBER REPORTS – OPTIONAL EXECUTIVE SESSION RECONVENE ADJOURNMENT DRAFT Minutes of the Arlington City Council Meeting Council Chambers 110 East Third April 7, 2008 City Council Members Present by Roll Call: Dick Butner, Sally Lien, Graham Smith, Marilyn Oertle, Chris Raezer, Scott Solla, and Steve Baker Council Members Absent: There were no Council Members absent. City Staff Present: Allen Johnson, Kathy Peterson, Paul Ellis, David Kuhl, Cristy Brubaker, Terry Marsh, Vic Ericson, Jan Bauer, Steve Peiffle – City Attorney Also Known to be Present: Marianne Monty, Ralph Monty, and Jeanne Watanabe Mayor Larson called the meeting to order at 7:00PM, and the pledge of allegiance followed. APPROVAL OF THE AGENDA There was a motion by Marilyn Oertle and seconded by Sally Lien to approve the Agenda. The motion passed with a unanimous vote. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS There were no special guests for this evening. PUBLIC COMMENT Shannon Clark, 307 No Stillaguamish, Apt 307, Arlington, was unhappy that her checks with pertinent information were displayed in the window of Little Italy. She was given advice from the Mayor and Council members. She also noted she was dealing with other harassment issues. CONSENT AGENDA There was a motion by Marilyn Oertle, seconded by Chris Raezer, and unanimously carried to approve the following Consent Agenda items: 1. Minutes of the March 17 and 24th meetings. 2. Accounts Payable Claims Checks #52810 through #53013 in the amount of $653,376.17, and Payroll Checks #24368 through #24415 in the amount of $1,166,607.19 3. Green-Thom Final Short Plat File #PLN20080031 PUBLIC HEARING Proposed Ordinance No. 1449 Amending Land Use Code to Allow Convenience Stores in the Old Town Business District 2 Zone Community Development Director David Kuhl addressed the requested Amendment and noted that there has been a Council workshop and Planning Commission meeting regarding this issue. At 7:11PM the Public Hearing was opened, and with no one wishing to speak, the Public Hearing was immediately closed. Mr. Kuhl then answered Council questions. Page 1 of 3 Minutes of the City of Arlington City Council Meeting DRAFT April 7, 2008 Steve Baker moved and Dick Butner seconded the motion to adopt Ordinance No. 1449 amending Table 20.40, Permissible Uses, of the Land Use Code to allow convenience stores in the Old Town Business District. The motion was approved with a unanimous vote. UNFINISHED BUSINESS There was no Unfinished Business. NEW BUSINESS Subscription Agreement with eCityGov.net City Administrator Allen Johnson introduced Economic Development Manager Vic Ericson who spoke to the Subscription Agreement. He then answered Council questions, and discussion followed. Chris Raezer moved and Graham Smith seconded the motion to authorize the Mayor to sign a Subscription Agreement with eCityGov Alliance to list available commercial properties on www.NWProperty.net The motion was approved with a unanimous vote. Request from DABA to hold special events in City owned parking lots Assistant City Administrator for Special Projects Paul Ellis addressed the requests for the use of the City parking lot for special events, and gave a history of event locations. He then answered Council questions. Jeanne Watanabe 239 North Olympic Avenue, Arlington also answered Council questions. Marilyn Oertle moved and Dick Butner seconded the motion to authorize the Downtown Arlington Business Association to use the City Parking lot and the Merchants Parking lot for the following DABA events: May Hunt on May 17, Show and Shine Car Show on June 14, Arlington Street Fair July 11 through July 13, the Fall Festival on September 20, and the October Hunt on October 18. The motion was approved with a unanimous vote. Resolution No. 770 Requesting the Washington State Transportation Commission rename the State Highway 531 (172nd St. NE) Interchange on Interstate 5 the “Oliver ‘Punks’ Smith Memorial Interchange. Allen Johnson spoke to the unsuccessful attempts to name the overpass, and then suggested the use of a Resolution. Marilyn Oertle moved and Sally Lien seconded the motion to adopt Resolution No. 770, Requesting the Washington State Transportation Commission rename the State Highway 531 (172nd St. NE) Interchange on Interstate 5 the “Oliver ‘Punks” Smith Memorial Interchange” The motion was approved with a unanimous vote. 2008 Hotel Motel Tax Applications Finance Director Kathy Peterson addressed the Motel Tax Applications. Sally Lien noted that all applications had been funded, and they contain the city logo. Sally Lien moved and Marilyn Oertle seconded the motion to authorize the Mayor to sign contracts to fund the projects recommended by the Hotel Motel Tax Advisory Committee. The motion was approved with a unanimous vote. MAYOR’S REPORT Mayor Larson gave an update of meetings she had recently attended. Page 2 of 3 Minutes of the City of Arlington City Council Meeting DRAFT April 7, 2008 Page 3 of 3 ADMINISTRATOR & STAFF REPORTS Mr. Johnson stated that the ladder truck is back in Arlington and negotiations continue regarding Station 48. Interviews for the Airport and Planning Commission are upcoming. City Attorney Steve Peiffle noted that the State Supreme Court will hear the Island Crossing / Dwayne Lane matter sometime in June. CITY COUNCIL COMMITTEE REPORTS Dick Butner, Sally Lien, Graham Smith, Marilyn Oertle, Chris Raezer, Scott Solla, and Steve Baker all had brief reports. EXECUTIVE SESSION City Attorney announced that there would not be need for an Executive Session. ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 7:46PM. ____________________________ Margaret Larson, Mayor April 14, 2008 Page 1 of 2 Recorded by Julie Davis ARLINGTON PUBLIC SCHOOLS BOARD of DIRECTORS and ARLINGTON CITY COUNCIL JOINT MEETING MINUTES Monday, April 14, 2008 6:30 pm Byrnes Performing Arts Center The Arlington Public Schools Board of Directors and the Arlington City Council held a joint meeting on April 14, 2008 at 6:30 p.m. at the Byrnes Performing Arts Center at Arlington High School, 18821 Crown Ridge Blvd; Arlington, WA. The purpose of the meeting was to discuss matters of mutual interest. Board President, Kay Duskin, called the meeting to order at 6:30 pm. In attendance were Arlington School Board members Kay Duskin, Jim Weiss, Jeff Huleatt, Bob McClure & Carolyn Erickson, and Student Advisors Brad McPherson and Nikita Doggett, Superintendent Linda Byrnes, Mayor Margaret Larson, and City Council members Graham Smith, Scott Solla, Dick Butner, Marilyn Oertle, Steve Baker, Chris Raezer, & Sally Lien. No Board or Council members were absent. Also present were Arlington School District staff members Warren Hopkins, Misti Gilman, Diane Kirchner-Scott, Deb Borgens, and Julie Davis, and City staff members Allen Johnson, Kristin Banfield, Len Olive, David Kuhl, Jim Rankin, Steve Peiffle, Cristy Brubaker, and Terry Marsh, and Guests Eric DeJong, Haller Middle School Principal, Cindy Huleatt, BPAC Promotions Coordinator, Chris Badger, Emergency Management Coordinator, and Dr. Kristine McDuffy, incoming Superintendent for the Arlington School District. President Kay Duskin introduced Dr. Kristine McDuffy and asked the Board and Council members, and administrators to introduce themselves. The flag salute was given. Tom Foolery Art Project at Haller Middle School Eric DeJong, Haller Middle School Principal, shared a PowerPoint presentation and talked about the Tom Foolery art project at Haller Middle School. Byrnes Performing Arts Center Report Arlington School District Superintendent, Linda Byrnes, and City of Arlington Manager, Allen Johnson, provided a review of the Byrnes Performing Arts Center management and financial plans, as agreed upon by the School Board and City Council in January 2007. They also outlined the financial report for the BPAC as of February 2008. Joint Meeting Minutes School Board and City Council Monday, July 30, 2007 Haller Middle School April 14, 2008 Page 2 of 2 Recorded by Julie Davis Cindy Huleatt, Promotions Coordinator for the Byrnes Performing Arts Center, shared an update of the events and current activities at the BPAC. Sarah Arney, Arlington Times Reporter, who was in the audience, was recognized for her great coverage of the events at the Byrnes Performing Arts Center. President Duskin suggested getting a marquee as well, to announce current events at the BPAC. Emergency Management Report Jim Rankin, Arlington Fire Chief, and Chris Badger, Emergency Management Coordinator, reported on the progress of the emergency coordination efforts between the City of Arlington, the Arlington School District and Cascade Valley Hospital. Possible Joint Projects Under Consideration Arlington School District Superintendent, Linda Byrnes, and City of Arlington Manager, Allen Johnson, outlined some of the other projects being considered. Items discussed were: Weston/New Fire Station Trail Parking Road Access to 172nd Fiber Optics Weston/New Fire Station School District Transportation Department Haller Middle School Overflow Parking for Library Presidents Elementary/District Office Corner Lot for Pea Patch Joint Field for Youth Sports Post Middle School-Lower Ag Area Possible Trail & Utility Access Arlington High School Water Lines for Future Use Kent Prairie Ball Field Possible Utilities Access for Future Growth Impact Highway 9 Pedestrian Overpass President Kay Duskin reminded the elected officials that Public Disclosure Commission (PDC) statements are due tomorrow, April 15th. She noted that the next Joint Meeting of the School Board and City Council will be on June 23, 2008 at 6:30 pm and will be hosted by the City of Arlington. The meeting was adjourned at 8:03 pm. No action was taken. ________________________________________ ________________________________________ Kay Duskin, President Linda Byrnes, Superintendent Arlington School District Board of Directors Secretary to the Board of Directors City of Arlington Council Agenda Bill AGENDA ITEM: Consent Agenda #3 ATTACHMENT B COUNCIL MEETING DATE: April 21, 2008 SUBJECT: Consideration of Newman Final Short Plat Zoning Permit (File No. PLN20080030) DEPARTMENT OF ORIGIN: Community Development ATTACHMENTS: 1. Final Plat Map received by the City on February 5, 2008. EXPENDITURES REQUESTED: BUDGET CATEGORY: LEGAL REVIEW: DESCRIPTION: George Newman requests final short plat approval of the Newman Short Plat for development of a 4-lot single-family subdivision. The plat is located on approximately 0.78 acres. Access will be from 87th Avenue NE. HISTORY: The subject final short plat application was received by the City of Arlington on February 5, 2008. The Newman Preliminary Short Plat (Z-07-002-SP) for 4 lots received a zoning permit on March 16, 2007. ALTERNATIVES: 1. Approve pursuant to staff recommendations including conditions. 2. Approve with additional or lesser conditions. 3. Deny with or without prejudice, with findings of fact for denial. 4. Remand to staff and/or for additional information, giving specific direction as to what information is to be provided. RECOMMENDED ACTION: Approve the Newman Final Short Plat (PLN20080030) and acceptance of dedication of right-of- way, easements, sidewalks or other public facilities shown on the site plan received by the City on February 5, 2008, subject to minor changes in the descriptive language and closures on the plat map. City of Arlington Council Agenda Bill AGENDA ITEM: New Business #1 ATTACHMENT C COUNCIL MEETING DATE: April 21, 2008 SUBJECT: Approval of Architectural Contract with Gary Parkinson/Architects DEPARTMENT OF ORIGIN: Airport ATTACHMENTS: Memo from Rob Putnam, Airport Manager Copy of the Letter of Intent and the State reply Gary Parkinson proposal and contract EXPENDITURES REQUESTED: $55,000 BUDGET CATEGORY: Airport Improvement Funds LEGAL REVIEW: Yes DESCRIPTION: The proposal is for contracting with Gary Parkinson/Architects to prepare the construction documents needed to receive permits and bids for the office expansion project. The proposal and contract from Gary Parkinson/Architects has been presented to the Airport Commission and was approved by the Commission at their November 13, 2007 meeting. HISTORY: For the past several months staff has been working with WSDOT and Gary Parkinson on the development of a preliminary floor plan. The scope of the project was to accommodate additional space for airport staff, a pilot lounge, community meeting room and office space for WSDOT Aviation Division. Once the preliminary floor plan was completed an estimated project cost was created. The cost estimate includes building/design, project management, permitting fees, mitigation, connection fees, installation of a hydrant, storm drainage, furnishings for the meeting room and a 15% contingency. The results were discussed at an Airport Commission workshop on October 23, 2007 and the City Council workshop and the consensus was to continue working on the project. ALTERNATIVES: Approve with modifications Table Deny RECOMMENDED ACTION: The Airport Commission recommends entering into a contract with Gary Parkinson/Architects for a sum not to exceed $55,000. City of Arlington Council Agenda Bill City of Arlington Council Agenda Bill AGENDA ITEM: New Business #2 ATTACHMENT D COUNCIL MEETING DATE: April 21, 2008 SUBJECT: Purchase of a Self Contained Breathing Apparatus Recharge System DEPARTMENT OF ORIGIN: Fire ATTACHMENTS: 1) Los Angeles County Contract; 2) Bauer Compressor Price Quote; 3) Proposed Resolution 771. EXPENDITURES REQUESTED: $45,591.67 BUDGET CATEGORY: FEMA AFG Grant: EMW-2007-FO-06402 LEGAL REVIEW: Done DESCRIPTION: Resolution 771 authorizes staff to purchase a Self Contained Breathing Apparatus Recharge System through the Los Angeles County contract with Bauer Compressors, Inc. HISTORY: One of the projects in the 2007 FEMA Assistance to Firefighters Grant (AFG) is the purchase of a Self Contained Breathing Apparatus Recharge System (SCBA). The City has the opportunity to “piggyback” on a Los Angeles County (LACO) Contract for purchase of this system with Bauer Compressor Company. RCW 39.34.030 allows for such actions by appropriate actions such as ordinance, resolution, or otherwise pursuant to law of the governing bodies of the participating public agencies shall be necessary before such agreement may enter into force. ALTERNATIVES: Advertise for a separate bid proposal. RECOMMENDED ACTION: Approve resolution #771, authorizing the Staff to proceed with the purchase of a Self Contained Breathing Apparatus Recharge System as provided for in the Los Angeles County contract and in accordance with the provisions of RCW 39.34.030. RESOLUTION NO. 771 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON, AUTHORIZING THE ACQUISITION OF A SELF CONTAINED BREATHING APPARATUS RECHARGE SYSTEM BASED ON AN AGREEMENT WITH THE COUNTY OF LOS ANGELES, CALIFORNIA FROM BAUER COMPRESSORS, INC., AS AUTHORIZED UNDER RCW 39.34.030 WHEREAS, RCW 39.34.030 authorizes the City to enter into agreements with other governmental agencies for the cooperative purchase of equipment; and WHEREAS, the City has received a 2007 FEMA Assistance to Firefighters Grant, which includes the purchase of a Self Contained Breathing Apparatus Recharge System; and WHEREAS, the County of Los Angeles, State of California has a contract with Bauer Compressors, Inc. for a Unicus Self Contained Breathing Apparatus Recharge System Model III/13H-E3; and WHEREAS, the Los Angeles County contract authorizes other governmental agencies to purchase said equipment at the same price, which the City Fire Department has determined to be a favorable price; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: 1. Pursuant to the authorization provided by RCW 39.34.030, the City Council of the City of Arlington hereby authorizes acquisition of a Unicus Self Contained Breathing Apparatus Recharge System Model III/13H-E3 on the same terms and conditions as identified in the Los Angeles County Term Contract #42966 with Bauer Compressors, Inc. APPROVED by the Mayor and City Council of the City of Arlington this ______ day of _______________, 2008. CITY OF ARLINGTON ____________________________________ Margaret Larson, Mayor RESOLUTION NO. 771 2 ATTEST: _________________________________ Kathy Peterson, City Clerk APPROVED AS TO FORM: __________________________________ Steven J. Peiffle, City Attorney City of Arlington Council Agenda Bill AGENDA ITEM: New Business #3 ATTACHMENT E COUNCIL MEETING DATE: April 21, 2008 SUBJECT: Olympic Place Retirement and Assisted Living Community (Mountain West Retirement Corporation) is requesting an appeal of current water and sewer rates or allowing the service to be charged the Senior Utility Rate Discount. DEPARTMENT OF ORIGIN: Public Works – Utilities Division James Kelly ATTACHMENTS: • April 10, 2008 Memorandum from City Attorney Steve Peiffle summarizing the legal issues relating to the “appeal” of Mountain West Retirement Corporation’s current water and sewer rates and their request to have the service be charged the Senior Utility Rate Discount. • April 8, 2008 Memorandum from staff responding to the Olympic Place Retirement and Assisted Living Community request for an appeal of current water and sewer rates and request allowing the service to be charged the Senior Utility Rate Discount. EXPENDITURES REQUESTED: None BUDGET CATEGORY: Water/Sewer Operating Fund 2008 LEGAL REVIEW: Reviewed by City Attorney DESCRIPTION: Mr. Mike Vigil of Utility Audit, Inc. (Denver CO), acting of behalf of Olympic Place Retirement and Assisted Living Community, is requesting that Council consider the following: 1. An appeal of the water and sewer rates being charged to Olympic Place Retirement and Assisted Living Community. 2. That the water and sewer services for Olympic Place Retirement and Assisted Living Community be allowed the Senior Utility Rate Discount per AMC 13.12.140. Staff has reviewed both of these requests and determined that the service is being charged appropriately per City of Arlington Municipal Code and that the service does not qualify for the Senior Utility Rate Discount. City of Arlington Council Agenda Bill HISTORY: On January 11, 2008 Mr. Mike Vigil of Utility Audit, Inc. (Denver CO) , acting on behalf of Olympic Place Retirement and Assisted Living Community, sent an email to the City Council requesting an appeal of the water and sewer rates for the Olympic Place Retirement and Assisted Living Community (Utility Account #13-31800.0). This request was researched and a determination made that the rates were being accurately charged per Arlington Municipal Code; a letter was sent to Mr. Vigil on February 6, 2008 informing him of our review and determination. Mr. Vigil sent a follow up email dated February 6, 2008 in which he posed four additional questions regarding the Olympic Place Retirement and Assisted Living Community water and sewer service. A second letter was sent on February 20, 2008 with responses addressing the four questions; one response was an explanation why they did not qualify for the Senior Utility rate Discount. Mr. Vigil sent a follow up email dated February 28, 2008 in which he again requested that Olympic Place Retirement and Assisted Living Community be charged the Senior Utility Rate Discount. The third response to Mr. Vigil’s request came from the City Attorney, Mr. Steve Peiffle, in which he reiterated the findings why Olympic Place Retirement and Assisted Living Community did not qualify for the Senior Utility rate Discount. ALTERNATIVES: 1. Deny the request for an appeal of the utility rates and the request for Senior Utility Rate Discount. 2. Grant the appeal of water and sewer rates charged to Olympic Place Retirement and Assisted Living Community; this can be accomplished by amend the appropriate chapters of AMC 13.12 regarding rates and classifications. 3. Grant the request allowing Olympic Place Retirement and Assisted Living Community to be charged the Senior Utility Rate Discount; this can be accomplished by amending AMC 13.12.140. RECOMMENDED ACTION: Staff recommends that the request for an appeal of the utility rates and the request for Senior Utility Rate Discount be denied. Attorney-Client Privileged Communication Not for Public Disclosure 1 MEMORANDUM Date: April 17, 2008 From: Steve Peiffle, City Attorney To: Mayor Margaret Larson City Council CC: Jim Kelly, Utilities Manager Subject: Mountain West Retirement Corporation The purpose of this memo is to spell out the legal issues relating to the “appeal” of Mountain West Retirement Corporation, doing business as Olympic Place Retirement and Assisted Living Community (“Mountain West”). Procedural status State law is limited on utility rates. RCW 35.92.010 states that cities have “full power to regulate and control the use, distribution, and price [of utility service]: PROVIDED, that the rates charged must be uniform for the same class of customers or service.” In considering rate classifications, state law provides: In classifying customers served or service furnished, the city or town governing body may in its discretion consider any or all of the following factors: The difference in cost of service to the various customers; location of the various customers within and without the city or town; the difference in cost of maintenance, operation, repair, and replacement of the various parts of the system; the different character of the service furnished various customers; the quantity and quality of the water furnished; the time of its use; the achievement of water conservation goals and the discouragement of wasteful water use practices; capital contributions made to the system including, but not limited to, assessments; and any other matters which present a reasonable difference as a ground for distinction. No rate shall be charged that is less than the cost of the water and service to the class of customers served. RCW 35.92.010. Our City Code has established two basic classifications, residential and commercial/industrial. Generally speaking, rates in either classification are based on two factors: meter size, and consumption. AMC 13.12.020. Mountain West Corporation is classified as a multi-family residential complex. For those, rates are set by our ordinance as “the sum of the basic charge for Attorney-Client Privileged Communication Not for Public Disclosure 2 the first unit based on actual meter size, plus one basic charge for each additional residential unit, for the minimum meter size (5/8 by 3/4 inch).” RCW 13.12.020. Mountain West’s rate is calculated as per the memo from James Kelly and Kristin Wallace which is submitted with the Council packet. There is no process defined in our code for “appeals” of rates. There are processes defined for appeals of connection charges. See, AMC 13.12.250. There is, however, the following provision in our code: Remission of rates shall only be made upon recommendation and approval of the city council for causes beyond the reasonable control of the user. AMC 13.12.050. The term “remission” is defined in Black’s Law Dictionary as “A release or extinguishment of a debt” or “the act by which a forfeiture or penalty is forgiven”. City staff believes this is a request for remission of rates. Senior citizen discount Mountain West has taken the position that it should receive the senior citizen rate. Our code does make provision for a low income senior citizen rate, but City staff believes that Mountain West Retirement Corporation does not qualify. AMC 13.12.140 provides as follows: (a) For qualifying senior citizens as defined in this section, the base residential rates and consumption and volume charges . . . shall be reduced by forty percent; provided, however, that the CPI increases referred to in Sections 13.12.040 and 13.12.115 shall not be so reduced. (b) For purposes of this section, the term “qualifying senior citizens” shall mean those rate payers who are 61 years of age or older, whose household income is twenty- eight thousand dollars or less. For purposes of verifying income, ratepayers seeking to qualify under this section shall provide such proof of age and income as may be required by the city upon forms retained by the city clerk for that purpose. Attorney-Client Privileged Communication Not for Public Disclosure 3 Conclusion The City staff has concluded that the “ratepayer” in this case is Mountain West Retirement Corporation, and that Mountain West Retirement Corporation, as a privately held corporation with an income well in excess of twenty-eight thousand dollars per year a cannot qualify as a “qualifying senior citizen” under AMC 13.12.140. Likewise, City staff does not believe that the remission of rates is appropriate in this case. The three other similar facilities in the City pay similar rates for their facilities. When remission or forgiveness of rates has been allowed in the past, it has been for partial credit due to broken lines or the like. City staff believes that Mountain West elected to have utilities billed as a single unit originally in order to get favorable connection rates. By doing so, the company saved approximately $140,000 in connection fees in 2003. The alternative would have been to separately meter each unit and have the residents pay for utility service directly. Evidently, Mountain West made a business decision not to do this. Consequently, Mountain West’s issue with rates is not due to “causes beyond the reasonable control of the user”. The City staff recommends that the City Council deny the request for remission or appeal of rates. If the ratepayer believes it is more equitable to establish a separate rate class for retirement facilities, that argument should be advanced in the context of the updates of the water and sewer comprehensive plans which is currently ongoing, so that impacts to the utility system can be analyzed in the context of the entire utility. a Income information for privately held companies is not available. One Dun & Bradstreet estimate for Mountain West Retirement Corporation’s corporate headquarters in Salem indicates annual revenues in excess of $6 million, but City staff has not attempted to verify this. http://www.manta.com/coms2/dnbcompany_mg5hc City of Arlington Utilities Division Memo To: Mayor Larson and City Council Members From: James Kelly and Kris Wallace cc: Allen Johnson, Len Olive, Steve Peiffle, Date: April 8, 2008 Re: Appeal of Water and Sewer Rates Olympic Place Retirement and Assisted Living Community (account 13-31800.0) On January 11, 2008 the City received an email (attached) from Mr. Mike Vigil of Utility Audit Inc., on behalf of Mountain West Retirement Corporation, requesting that the City reevaluate the water and sewer rates being charged to the Olympic Place Retirement and Assisted Living Community (utility account 13-31800.0). The Public Works Utilities Division researched the request and replied that the water and sewer utility rates for this account are being charged correctly in accordance with the AMC per the current rate class. After numerous correspondence with Mr. Vigil regarding this issue (see attachments), he has requested a formal hearing at the April 21, 2008 City Council meeting to request either an appeal of the utility rates charged to Olympic Place Retirement and Assisted Living Community or that the service be charged at the Senior Citizen’s Rate (AMC 13.12.140). This memorandum is a response to that appeal. 1. Background Information Regarding Service - Olympic Place Retirement and Assisted Living Community is a 108 unit facility opened in 2003 that offers both assisted living and retirement living type apartments for its residents. The facility’s website advertises “carefree living with our Hospitality Package, included in your monthly rent: Independent Living Residents are served 1 meal in restaurant fashion 3 delicious meals served daily for Assisted Living Residents 24-hour staff for your assistance and peace of mind Social, educational and recreational programs Weekly housekeeping Home maintenance All utilities except telephone” Olympic Place Retirement and Assisted Living Community Water Rate Appeal April 8, 2008 Page 2 z Page 2 - In 2002 Mountain West Investment Corporation requested a single 3-inch metered domestic water service with full knowledge of the City’s water rate schedule and service connection fees. In addition, Mountain West Investment Corporation was provided a reduced connection fee as allowed for multi-family occupancy per AMC 13.12.230. The following is the revised connection fee that was provided to Mr. Ben Settecase, Mountain West Investment Corporation Project Manager, in a January 20, 2003 letter: Original Connection Fee Estimate $ 374,425.00 Revised Connection Fee Estimate $ 234,175.00 2. Current Rate Class and Charges - Rate Payer – Based on current records available from the City’s utility billing department, the service is registered to Mountain West Retirement Corporation. This is the rate payer of record. - Rate Class – Based on how the facility is constructed and operated, the usage is consistent with a multiple-family residential occupancy per the AMC (13.12.020). - Rate Charge – The following is a summary of typical bimonthly water and sewer utility service charges for the Olympic Place Retirement and Assisted Living Community: $ 600.10 3" meter basic water service charge $5,838.99 Basic water service charge of $54.57 for each additional unit and includes base consumption usage of approximately 240,100 gallons of water. $9,592.56 Basic sewer service charge of $88.82 for each unit and includes sewer discharge for the base water usage ($88.82 x 108 units = $9,592.56). $29.81 Proportionate monthly water charge per dwelling unit. $44.41 Proportionate monthly sewer charge per dwelling unit. Notes – 1) The Connection Fee ERU reduction factor does not apply to bimonthly service charges, 2) the above is based on 2007 utility rates – the rates in effect at the time of the appeal. - Senior Discount – We have reviewed the City’s utility billing practices for Low Income Senior Citizen’s Rate (AMC 13.12.140) and determined that this facility does not qualify for that discount for the following reasons:. a) The City’s utility billing practices for Low Income Senior Citizen’s Rate applies to residential water and sewer rates for connection to single family residential services. The service to Olympic Place Retirement and Assisted Living Community is classified as a multi-family residential service per AMC 13.12.020; it is not a single family residential service. b) The qualifying senior citizen shall be the rate payer who demonstrates they are 61 years or older and has an annual household income of $28,000 or less. The registered rate payer for this service is a corporation (Mountain West Retirement Corporation), not a senior citizen 61 years or older. Olympic Place Retirement and Assisted Living Community Water Rate Appeal April 8, 2008 Page 3 z Page 3 - Alternative Rate Class – We performed additional research to determine if the facility could be reclassified to a different rate class based on occupancy type; perhaps as a medical facility as suggested during a February 4, 2008 phone conversation with Mr. John Elf, Mountain West Retirement Corporation Director of Property Management. Based on the business classification and services offered, the Olympic Place Retirement and Assisted Living Community does not qualify as a medical facility. In addition, there are three other similar assisted senior living facilities in Arlington that are similarly rate classified as multiple- family residential occupancy. 3. Determination - Subsequent to the foregoing analysis, the water and sewer utility charges for the Olympic Place Retirement and Assisted Living Community are being charged correctly in accordance with the AMC. 4. Other Issues - Washington State Requirements – The state of Washington does not require a utility provide senior and low income utility rate discounts. Rather, the state authorizes cities, counties, and utility districts to provide assistance to aid low-income persons in connection with services provided under" as long as it is defined by appropriate ordinance or resolution adopted by the governing body. - Comprehensive Plan Updates – As we discussed with Mr. Vigil, the City is currently updating the Water Comprehensive Plan and Sewer Comprehensive Plan. A portion of that work will also include a utility financial analysis and evaluation of the utility rate structure. These documents will be open for public review and comment prior to acceptance by City Council. Attachments Account 13-31800.0 response letter #1 (J Kelly Feb 6, 2008) Account 13-31800.0 response letter #2 (J Kelly Feb 20, 2008) Account 13-31800.0 response letter #3 (S Peiffle Mar 5, 2008) Email from Mike Vigil to City Council (Jan 11, 2008) Email from Mike Vigil to Jim Kelly (Feb 6, 2008) City of Arlington Council Agenda Bill AGENDA ITEM: New Business #4 ATTACHMENT F COUNCIL MEETING DATE: April 21, 2008 SUBJECT: Approval of the AIP construction contract and Approval of AIP Grant DEPARTMENT OF ORIGIN: AIRPORT ATTACHMENTS: NONE EXPENDITURES REQUESTED: $1,185,849.62 BUDGET CATEGORY: Airport Improvement Fund LEGAL REVIEW: N/A DESCRIPTION: This is a request for (1) approval of the construction contract with Callen Construction for $1,185,849.62 to construct the 2008 AIP Project, Taxiway C&D Improvements, and (2) approval of the AIP grant offer and authorize the Mayor to sign the offer when it arrives. The grant offer also includes funds to cover 95% of the Construction Management (CM) fees which is estimated at $186,971. contractor CM fees TOTAL FAA AIP GRANT 95% $1,126,557.14 $179,522.45 $1,306,079.59 WSDOT GRANT 2.5% $29,646.24 $4,724.28 $34,370.52 CITY'S PORTION 2.5% $29,646.24 $4,724.28 $34,370.52 TOTAL PROJECT $1,185,849.62 $188,971.00 $1,374,820.62 HISTORY: The project consists of overlaying Taxiway C and connectors, overlaying Taxiway D and D3, reconstructing D2, constructing a run-up apron at the southeast end of Taxiway C and constructing a hold apron at the northwest end Taxiway C. The project was bid on March 31 and seven contractors submitted bids. The responsible low bidder is Callen Construction. Our project engineer, W&H Pacific, has reviewed the bid documents and the references. W&H’s recommends awarding the contract to Callen. Construction is anticipated in early June. COMMITTEE REVIEW AND ACTION: The Airport Commission will be asked to approve the construction contract with Callen Construction for $1,185,849.62 at the April 16, 2008 special commission meeting. ALTERNATIVES: 1. Approve pursuant to Airport Commission’s recommendation. 2. Table. 3. Deny, with findings of fact for denial. RECOMMENDED ACTION: Staff recommends the City Council approve the construction contract with Callen Construction for $1,185,849.62. Staff recommends City Council approve the AIP grant offer and authorize the Mayor to sign the offer when it arrives.