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Home My WebLink About1/10/2012 - City Council - City Council Meeting Agenda Packet• L' • CITY OF EAST WENATCHEE REGULAR COUNCIL MEETING AGENDA JANUARY 10, 2012 6:30 P.M. OATH OF OFFICE Steven C. Lacy, Mayor Frank Collings, Council Position 1 Harry Raab, Council Position 2 Sandra McCourt, Council Position 5 Tim Detering, Council Position 6 ROLL CALL PLEDGE OF ALLEGIANCE PUBLIC COMMENTS BUDGET ISSUES DEPARTMENT REPORTS MAYOR'S REPORT Couneilmember Assignments Council -Staff Retreat CONSENT CALENDAR Consideration of Minutes — Regular Session, December 13, 2011 Consideration of Payables and Payroll ORDINANCES 3. 12-01-01 An Ordinance amending East Wenatchee Municipal Code Chapter 4.34 to establish rates for utilities provided to senior citizens, to low-income citizens, and to disabled citizens. (Devin Poulson, City Attorney). COUNCIL REPORTS Consideration of acquisition of property. ADJOURNMENT In compliance with the Americans with Disabilities Act, if youti need special assistance to participate in this meeting, please contact the City Clerk at 509-884-9515. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangetnenis to ensure accessibility to this meeting. Page 1 of 1 • CITY OF EAST WENATCHEE, WASHINGTON REGULAR SESSION OF THE CITY COUNCIL CONVENED MAYOR STEVEN C. LACY, PRESIDING DECEMBER 13, 2011 6:30 P.M. ROLL CALL Mayor Steven C. Lacy Councilmember Sandra McCourt Councilmember Wayne Barnhart Councilmember Dennis Hendricks Councilmember Chuck Johnson Councilmember George Buckner Councilmember Harry Raab Councilmember Dave Bremmer EMPLOYEES IN ATTENDANCE City Attorney Devin Poulson City Clerk Dana Barnard Police Chief Randy Harrison Community Development Director Lori Barnett City Treasurer/Finance Director Nick Gerde • Municipal Court Judge Chancey Crowell Executive Secretary Teresa Allen Associate Engineer Brandon Mauseth Clerical Assistant Shawn Murison PLEDGE OF ALLEGIANCE APPRECIATION AWARD Mayor Lacy presented Councilmember Hendricks with a plaque in appreciation and recognition of his 22 years of dedicated service to the City of East Wenatchee. Councilmember Hendricks received a standing ovation from the Council and audience. PUBLIC COMMENTS Nathan Scott, 918 Manzanal Street, stated he did not agree with Council Action at the previous Council meeting regarding an increase to property tax and increasing salaries which negated the tax increase. He said he does not agree with some of the items in the budget that will be considered this evening, which includes the Events Department as he felt there should have been an attempt to get volunteer organizations to fill the gap. BUDGET ISSUES Finance Director Nick Gerde said the Budget Committee held a meeting December 8, 2011. The items discussed were the cost reduction by excluding the hiring of one police officer, and after reviewing the information provided by Municipal Court Judge Crowell, $12,000 was added to the Municipal Court Budget for hiring a Security company to be present during Court days. 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Ing `loafojd at[l ut siiujljotis 4tre iiu?dud utoj3 uo?lo?psunF jogjo aril puu oagoiuuaAA, isua opnioojd pinotis aatioluuaAk ul?nn luatuaaj2u TuuiBuo jno lugl sana?taq Ups oTl iugi poppu OH •suotlotpsunf iq&a otp Lion uuoi aiipuq u su Lions `suotlo?psuff lgBio jatilo oqi of ssoi u annbaj lou pinom gottinn uo?lnios iuuo?2aj jo pupi autos uonisuj iu2tuz ann luul uo?iuioadxa aui t{l?nn ansst jaluao ulOAO L unnol, aril 3o uotlniosaj u spjunnol ainquiuoo uuo Aogl lugta lutodpuuls Iu?oumu u utoj3 ou?tujaiap of aatioluuaAk Jo Alt3 atll ql?nn aluomnuuuoo of apjarJ xo!N joroila aouma pa3isu suti atT plus An -I joAvW •luana iutii puns diati of wpj pine Aogl jt itounoD pa3isu puu `•urd OO:ZI lu `I IOZ 19I jagutaoaQ joj uootiouni uotlutoajddu aafoiduta uu 8untuuid st ijno3pW jagtuauzi?ounoD p?us Aow jokeW •paiiaouuo oq iI?A `I IOZ `LZ jagtuaoaQ joj painpagos $u?laauz i?ounoD juin2w aui `2upaotu i?ounoo s?ql 8utjnp ssautsnq jno jo iiu gs?idui000u of aiqu we ann P loin p?us A38-I IOXUW ,L'dOdaU S,'dOAVW •alup of IMA puu `I I OZ jaquzanoN JO tiluout aril jo3 Ijoda2l i161?ouuut3 aril paenatnaj ap o •jw lHoaaH .LNHN LHvdda •la.�ipng pug aril �iutidopu aouuutpjo oql jo o5ussud tjl?m ia8png ljnoD iud?o?unw aril of poppu lunotuu iuuo?i?ppu aui opnioxo of Aluotilnu puu Alti?guduo aril anuti I i 0Z `£ i 2I3H➢ Eloga SffJRKIW 'IIDNnOD 99H3 VVMHtA LSdd dO AID CITY OF EAST WENATCHEE COUNCIL MINUTES DECEMBER 13, 2011 C`. Presented by Lori Barnett, Community Development Director Mayor Lacy opened the public hearing at 6:52 p.m. Tim Detering, 814 11`h Street NE, encouraged the City to use funds for sidewalk improvements. French Street, Hamilton Street and the Grant Road corridor were offered as locations that could benefit from sidewalks. Mr. Detering also mentioned that the City should look at opportunities to partner with housing developers who might be interested in providing affordable housing by using the funds to help defray the cost of public improvements required for the development. Mayor Lacy closed the public hearing at 6:56 p.m. 11-12-02 A public hearing to consider a request submitted by Martin and Maria Mendez to defer the design and installation of required public improvements including stormwater management systems, curb, gutter, and sidewalks for property located at 112 N Keller Avenue. Mayor Lacy opened the public hearing at 6:57 p.m. Lori Barnett, Community Development Director stated that this is a short plat submitted by Martin and Maria Mendez to divide a .47 acre parcel into two lots. She said the requirements in the comprehensive street standards require street and road improvements be done in front of the property and since there are no other improvements of curbs, gutters, and sidewalks on that street they have requested to defer the improvements. She added this can be done with a concomitant agreement which would be good for fifteen years, and if the area is improved with curbs, gutters, and sidewalks, the cost of the improvements would be recouped. Mayor Lacy closed the public hearing at 6:58 p.m. ACTION ITEMS 11-12-03 Request deferral of street improvements for Mendez Short Plat SP 2011-02. Presented by Lori Barnett, Community Development Director Council Action: A motion was made by Councilmember Barnhart, second by Councilmember Johnson, to approve the deferral and authorize the Mayor to sign a Concomitant Improvement Agreement. The motion carried, 7-0. RESOLUTIONS 11-12-04 A resolution authorizing the Mayor to sign an Agreement for Services with the Wenatchee Valley Visitor's Bureau. • Presented by Steven C. Lacy, Mayor t, • ZIOZ ivaA iuosg oql ioj aagolu Ati Isug jo fliD aqI zo3 lagpng iuui aqI gutzuog;nu aouEatpzo uu 30 �uipuaa puooaS ZI-I I -I I 'IV69Z`ti£S`i$ o; I67SL`I£S`3 mock auaS xu; ZIOZ ag; ui paPalloa aq o; ,Gal zu; 24jadoid auingai aq; ;o;unowu aq; Smsua.min Aq 1I-I1OZ -oK aauuutpo guipuawn lao;%uigsuM laaga;uuaM ;sub 3o Aiia aq; ;o aauumpjo uv U-iiOZ *ON HaNvAII(RIO (siioupual) • T-9 `pat�zua uotloui oq.L ' I I p0upuare aunzpua-TI0Z'oNaounug!ounoD Xq pu000s °uosugof jaquiaugiounoD Aq apou sum uoilow V :uoi;aV llaunoa BuipuaJ puooas of aouuuiPJO agl palunaia Aou-I tOARW .ioloanQ aouumj `opmD 3io!M Xq paluasaid •naA xnl Z I OZ aqI ui polaalloa aq oI W1 xul Apadoid mingaz aqI ui Iuamod ouo 3o osualoui uu pozuoglnn gotgnn I I - I I OZ jaquxnX ammVip OuTuauiu aagoluaaM Isug Jo XIID aql Jo aouuaipio ud 90-Z I - I T •.zua� Iuasg ZIOZ aql zo3 Iagpng f11IUII aa;ueniu io;S aaga;uuaM Ina ja;ua lf) • aq; Sm;dopu quo;gu gsvM laaga;uuaM pug ;o f4i3 aq; ;o oauuuip zo uV ZT-IiOZ *ON HDAIVNI(IHO •0-L `pauUuo uoilouz oqs, •la2png Al?T?Ifl jaluenumIS oagoluaaM Isug ia;uaz0 aqI ftnoicidu aouuaipzo aql Idopn oI `munuaig mquzaugpunoD Aq pu000s `Iluquiug iogwoug!3unoD Aq opum suns uoiloux y :uoyaV Iiaunoa •Sutpuat puooas oI aauuuipi0 aqI palunaia AM I JOAXyg ,=ui.9ug A4iD `AanVDoW uo(I Aq paluasajd u aA posU Z I OZ aqI joj Ia5png .zaluM uuolS aagolnuam Isug jaluaiD agI ft dopu aouumpio uu3o 2uipuai Isnd Si -IT -IT SH:)KVNIIQ2I0 •nuaang s,101isiA SOURA aoga;uuaM aq; q;!m saaiMaS jo;;uauiaaj2V us u2is o; joSvW aq; Nuizijoq;nu aaga;uuaM Inajo f4jj aq; jo uoilnlosa-d 81-TIOZ 'ON NOI.Lf1'IOSau '0-L `paluuo uoilouz ag,i, -nosing s,.101is'A AailuA aagoluuaM oql glyA sooTAJOS zoj luauz vaV uu uo aimmBis s,.ioAuW aqI 2uizijoglnu uoilniosoi agI Idopn oI `uosugo f jzgwauxiiounoD Aq pu000s `jamiong joqutauziiounoD Aq opuuz soon uoiloui d :uoilaV Iiaunoj I IOZ `£I -HaEl aDga SII.LI]AIIw'iIoNnoa aaHolvmam ISdII d0 AID CITY OF EAST WENATCHEE COUNCIL MINUTES DECEMBER 13, 2011 • Presented by Nick Gerde, Finance Director Council Action: A motion was made by Councilmember Buckner, second by Councilmember Johnson, to adopt the final budget for the City of East Wenatchee for the fiscal year 2012. The motion carried, 7-0. ORDINANCE NO.2011-14 An Ordinance of the City Council of the City of East Wenatchee, Washington, adopting the final budget of the City for the fiscal year commencing January 1, 2012. COUNCIL REPORTS Mayor Lacy updated Council with regards to the Metropolitan Planning Organizations (MPO), stating that the legislation has not been amended and if passed there is a high likelihood that we would not be grandfathered in, in the event they change the size requirements for an MPO. He added this would change some of the direct funding that comes to our area. Councilmember Hendricks asked why 10'b Street, East Wenatchee, was removed from the funding list and replaced with $25 million for a Park and Ride for Link. Mayor Lacy explained the process in which the Regional Council set up the priorities and then recommend that they be adopted by the local Transportation Council's. He said from a regional • perspective they did not see 10"' Street as a significant amount of regional impact and that is what they made the recommendation. He added the Wenatchee Valley Transportation Council has supported East Wenatchee on several projects in the recent past. Councilmember Johnson said an article from the American City County magazine caught his interest, "City eliminates paper meeting packets for elected officials and committee members with tablets", he said this was from North Liberty, Iowa, a town of 13,000 residents. The purchase is estimated to save the City about $10,000 annually for the twice a month Council meetings. He asked if the City could research this to see if it would be feasible. Mayor Lacy said he had a discussion with Councilmember Raab regarding changes that have been happening in terms of the organization and structure of Countywide Solid Waste. He said the County recently decided to bring Solid Waste in house and now it has raised some issues that we should be aware of and discuss. He said Councilmember Raab invited Countywide Solid Waste Program Director, Ron Draggoo, to talk about the issue. Mr. Draggoo explained that by Interlocal Agreement in 1995 a joint City/County organization which includes six jurisdictions created the Countywide Solid Waste with Douglas County as the lead agency. The Solid Waste Members Manual contains the rules by which all the agencies agree to follow. In those rules it was defined that the only role or advantage that Douglas County had by being the lead agency was that they were to provide legal and support services to the Solid Waste office in order to carry out the direction given by the Executive Technical Advisory Committee (TAC), which is made up of all the jurisdictions and approved by the Solid Waste Advisory Committee (SWAC). He said after review by Douglas County legal and elected officials, there is a linkage missing in which the Interlocal Agreement • has been misinterpreted or reinterpreted. Therefore, instead of having an independent Countywide Solid Waste office that answered to the Executive TAC, it would be a department of Douglas County and they p tuuma uut,Q Nid SS:L .LKHPOMOMV I IOZ `6 jagTuao3Q Puu `i I OZ `Z .raquranoN uo plag s2u?I33ur aalliuRUOZ) antlnoaxg luaurdolanaQ pus uo?len.rasuoD pun ooinosaNa uol2u?gsum IL'JluaD gIaON agl pun `I IOZ `6 .taquranoN uo plag 2upomi IuotudolanaQ pun u01lsntasaoD pue aomosag uol2u?gsn� IuxluaD gljoN oql `I l OZ `6 .taquranoN uo plat[ iiutlaaur dtgsnquray�I lo?rlstQ Iuautdolana(I oturouoog uolSu?gsL leiluoD gltoN aril mog salnu!w-.iau)long mgwatul?ounoo I I OZ `6 .raquranON uo Piag futlaatu p.reog antluUls?utuTV 116 uroojant2i aril urOJJ salnU!W - I.regtuug .ragtuatuj?oun0D . I IOZ `L .taquranoN uo plag 2tn1031[r pxuog 2upi anoD lioddnS [uaoigo-d sul.SnoQ unlagD agl tuoij solnu!W - lmoD3W iQquratul?ounoD • I I OZ `0I .raquranoN uo plat[ 2utlaaur p3unoD uopUvodsuujjL AalluA aatloluuam atll uro.g salnu!W - A3wj zofLW • uilaam itaunoj 41j aql olaolid 351115m ui pallnugns aaam salnutuyslao ai utnAollo; aqs •aagolsuaM Pug Jo 43 aril Ol aotn S 3o slum( natal -IoJ s310upuaH puu • .rauraraig sjoqutautllounoD po luutil lmoDoW aaqurautl?3uno0 puu `uosugor ioquiauq?ouno3 `Aowj ioAvW •aagol wAk Isug JO sooAoldura otp puu I?ounoo ,CI?D `joAuW aril paaluegl qoupuaH mgtuougjounoD •aatiolnuaAAj Ist,g jo AI?D aril qI?m JOquratul?ounOD su attnl s?g 3O ma?n.rano Jauq u anu2 Oslo aH •l?ounoD A113 aril uo $u?laaur Isul sni os[u st syil su AI?D aril oI aotAJas s q .roj .tautumig nquraugjounoD pw[uugl silo?apuaH aaqutaurl?ounoo uotssnostp ao3 31ouq oral? aril 2uuq uogl Il?m am -axe suoildo mo lugm aas puu ma?n jo lutod fugal u uroj pazAluue oq sigl lug[ palsaSSns Aot-I aoALW •paiiusgo oq use Aouafu pml agl raglagm puu alsuAk p?IoS aoj saomos Butpurg 2u?p�uilaz paun000 uoissnos?p joq m3 •pafuugo aq um solerado alsuM p?loS agI Xum atll puu pafuego oq uuo Xmoi?u peal aril `alon 4JOCutu .tadns u gl?m lug[ saluls ainpaooid agZ •salwodo alsuM p?IoS go?gm Xq suo?lulaw puu saltu aril Aq op?qe of Su?aatOu put, Su?lean of og?cads st Iugl luatmoi2v Imolialul agl ut uotloos u st aJagl Ares 0022t,r(j .1w •I? o2ungo of luatuaa.r2d luoolJalul agl unil?m utstuugoaur u jo asn agl of posoddo su luatuooj2V Ieool talul aril 3o uo?lu?lo2ou mou u omnbai lou It pinom `uatll 2ut2ueg3 st sumpipsuff motAlaq luoutaa r2d luaolzalul ogl3? po)lsu A3u-1 .tuffs •.zoltt.zlstutuq)V Xjunoo sgSnoQ oql of 1podai moo AO [I `DVI antlnoaxg aql of spodat joiNol ou aoglo s?q put, ainlontls Xlunoo agl olu? 2utlut$alu? pal.ruls uagl alsuM p?IoS ap?mV4uno3 aril M's OH •D`dh1S oql Xq panoidds ,Claluuzllln puu passnos?p uagl . ssm I? `DVI antlnooxg oql azojaq luom uotlepuoururoow s?g l �Cluno� ssl�noQ 3o sautlapma gs?lgelsa puu sampaooid �iotlod aril of uuojuoo of aneq pinom Aogl go?gm ui Alunoo sul2noQ jo saa,�oldtuo aq pinom I Ioz `£I waft Idoau salamiw IIID1 nOD MmolidN31W JSda 30 AID CITY OF EAST WENATCHEE CHECK REGISTER 2011 PAYABLES 10-Jan-12 ECK NUMBERS: 34737-34808 IDED CHECKS: none DEPARTMENT/FUND ACCOUNT NUMBER AMOUNT 0.00 801.92 Current Expense Fund: General Government Department 001 000 000 001 000 001 Legislative Department 001 000 110 666.93 Municipal Court Department 001 000 120 837.19 City Clerk Department 001 000 140 996.44 Internal Services Department 001 000 141 1,780.93 Finance Department 001 000 142 378.51 001 000 145 4,664.87 Legal Services 001 000 151 36.96 Central Services Department 001 000 180 5,446.19 Police Department 001 000 210 14,229.02 Detention (Jail Services) 001 000 230 16,859.81 001 000 250 - Engineering Services 001 000 315 - Planning Department 001 000 580 855.34 Code Compliance Department 001 000 590 148.68 Agency Disbursements 001 001 000 29,623.91 Current Expense Fund Total 77,326.70 reet Fund: DES 050 000 312-050 000 313 3966.79 Street Maintenance 101 000 420 7,162.51 Street Administration 101 000 430 1,378.23 Street Construction 101 000 950 - Street Fund Total 12,507.53 Other Funds: Comm Dev Grants Fund 102 000 000 0.00 Library Fund 112 000 000 143.60 Hotel/Motel Tax Fund 113 000 000 - Drug Fund 114 000 000 - East Wenatchee Events Board 117 000 000 937.21 Street Improvement Fund 301-000-000 6,582.78 Capital Improvement Fund 314-000-000 - Other Funds Total 7,663.59 Grand Total All Funds 97,497.82 0 *_[-]I Fund Transaction Summary Invoice Fiscals: 2011 - December - 1st pay December 001-000-001 Sub -Department 001-000-110 Sub -Department 001-000-120 Sub -Department 001-000-140 Sub -Department 001-000-141 Sub -Department 001-000-142 Sub -Department 001-000-145 Sub -Department 001-000-151 Sub -Department 001-000-180 Sub -Department 001-000-210 Sub -Department 001-000-230 Sub -Department 001-000-580 Sub -Department 001-000-590 Sub -Department 001-001-000 Department 050-000-312 Sub -Department 050-000-313 Sub -Department 101-000-420 Sub -Department 101-000-430 Sub -Department 112-000-000 Library Fund 117-000-400 •117-000-500 Sub -Department Sub -Department 301-000-000 Street Improvement Fund Count: 22 0 Execution Time: 4 second(s) Printed by EASTWENATCHEE\tallen on East Wenatchee - Fund Transaction Summary $801.92 $666.93 $837.19 $996.44 $1,780.93 $378.51 $4,664.87 $36.96 $5, 446.19 $14, 229.02 $16,859.81 $855.34 $148.68 $29,623.91 $2,870.03 $1,096.76 $7,162.51 $1,378.23 $143.60 $210.00 $727.21 $6,582.78 $97,497.82 Page 1 of 1 • • C, 'V � Iq 14 O O O O t` O 1- t.- r.- V CO 0 0 0 O O O O O O O O CM M M M 7 e- r- 1 t` f` ti t M LO In LO UP) Ln to 0 to 1A LO U� cv e- d' C) C)C) O CD to CD M Cl) M M 00 00 00 00 CO h I,- r- In to N tt9 e- — a- Ef3 ti> 619,619 <A Ir - - vi NA tR tH e4 w to). to .--� EA V! to fA aj tT d N C O 0) �.. 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Itf` W Ufa OO O'N ON N o V N mN Oyo Eo wo 0 0 o do -o ao "o o VO o J o 0 0 �o 0 y °o Qo �o 0o E 30 00 30 3o QO =o rno Eo ao �� a- J� tn� U N O 01 O _ LO C >1 M CIA Cl) O LMC1 iN0 O �i CD O O CD CD M CD p 0 CD p et' C O LO CDN O L CD O N_ N N N N M f • w W ✓ I-- — CO — W — W — C (li O F- O H O H CDH CDH O H O H > aEi L) � p Q O 00 tll Cl) T co p a D O H CO w 0 v N M O 7 v Ll IL ¢ O cam° E p Y m >_ O c D m H O u x •�• w 3 H (� CITY OF EAST WENATCHEE CHECK REGISTER 2012 PAYABLES 10-Jan-12 BECK NUMBERS: 34809-34823 OIDED CHECKS: none DEPARTMENT/FUND ACCOUNT NUMBER AMOUNT 0.00 27800.50 16,133.00 Current Expense Fund: 001 000 000 General Government Department 001 000 001 Legislative Department 001 000 110 Municipal Court Department 001 000 120 375.00 City Clerk Department 001 000 140 128.00 Internal Services Department 001 000 141 - Finance Department 001 000 142 - 001000 145 - Legal Services 001 000 151 - Central Services Department 001 000 180 - Police Department 001 000 210 - Detention (Jail Services) 001 000 230 - 001000 250 - Engineering Services 001 000 315 - Planning Department 001 000 580 463.30 Code Compliance Department 001 000 590 4,529.30 Agency Disbursements 001 001 000 - Current Expense Fund Total 49,429.10 reet Fund. DES 050 000 312-050 000 313 605.35 Street Maintenance 101 000 420 - Street Administration 101 000 430 324.30 Street Construction 101 000 950 - Street Fund Total 929.65 Other Funds: Comm Dev Grants Fund 102 000 000 0.00 Library Fund 112 000 000 - Hotel/Motel Tax Fund 113 000 000 3,844.86 Drug Fund 114 000 000 - East Wenatchee Events Board 117 000 000 678.88 Street Improvement Fund 301-000-000 Capital Improvement Fund 314-000-000 - Other Funds Total 4,523.74 Grand Total All Funds 54,882.49 0 1 Fund Transaction Summary • n L� Invoice 1 � 1 Fiscals: 2012 -January -First Pay January 001-000-001 Sub -Department $27,800.50 001-000-110 Sub -Department $16,133.00 001-000-120 Sub -Department $375.00 001-000-140 Sub -Department $128.00 001-000-580 Sub -Department $463.30 001-000-590 Sub -Department $4,529.30 050-000-313 Sub -Department $605.35 101-000-430 Sub -Department $324.30 113-000-000 Stadium Fund $3,844.86 117-000-300 Sub -Department $339.44 117-000-400 Sub -Department $339.44 Count: 11 $54,882.49 Execution Time: 13 second(s) Printed by EASTWENATCHEE\tallen on East Wenatchee - Fund Transaction Summary Page 1 of 1 • • Fa- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ri ri m ri 0 0 0 0 0 of 0)0) of Uci LO Sri ui • M Cl) M M 00 00 co w to Cl) M Cl) M fl- � ti ti V9 Efi e- .- r- M Cl) Cl) tM O O O O H'? 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East Wenatchee, WA 98802 Dear Mayor Lacy: This letter is to request excused absences for the City Council meetings scheduled for 27 December 2011(if a meeting is held), 10 January 2012 and 24 January 2012. I will be out of the State for an extended period but will return on 25 January 2012. Marie and I wish you, the Council and all City Employees a Joyous Holiday Season and a Prosperous New Year! With best regards, 'George J. Buckner Position 4 Councilperson Hand Delivered n • COUNCIL AGENDA BILL* PRESENTER: POSITION: CITY OF EAST WENATCHEE CITY COUNCIL AGENDA BILL 12-01-01 Devin Poulson City Attorney AGENDA ITEM * AGENDA DATE: DEPARTMENT: IS January 10, 2012 Legal TITLE: An Ordinance of the City of East Wenatchee amending East Wenatchee Municipal Code Chapter 4.34 to establish reduced rates for utilities provided to senior citizens, to low-income citizens, and to disabled citizens. BACKGROUND/HISTORY: The City recently negotiated a municipal solid waste collection contract with Waste Management. As part of this contract, Waste Management agreed to give senior citizens, low-income citizens, and disabled citizen a discounted collection rate. The proposed Ordinance updates the City's Municipal Code to eliminate inconsistencies between the Code and the new contract. Previously, only senior citizens and low-income disabled citizens were entitled to a reduced rate. Under the proposed Ordinance, senior citizens and low-income citizens, and disabled citizens are entitled to a reduced rate. EXHIBITS: Ordinance Recommendation: First Reading. FINANCIAL DATA: Expenditure Required Amount Budgeted Appropriation Required $0 $0 $0 ACTION TAKEN: I S4' Pe Motion Made By: Councilmember Bremmer Councilmember Johnson Councilmember McCourt Councilmember Barnhart Passed: Failed: Second By: Councilmember Raab Councilmember Buckner Councilmember Hendricks Mayor Lacy (in case of tie) Page 1 of 1 0 City of East Wenatchee, Washington • Ordinance No. 2012- An Ordinance of the City of East Wenatchee amending East Wenatchee Municipal Code Chapter 4.34 to establish reduced rates for utilities provided to senior citizens, to low-income citizens, and to disabled citizens. 1. Recitals a. Preamble. The City of East Wenatchee ("City") is a non -charter code City duly incorporated and operating under the laws of the State of Washington; and 2. Authority. a. RCW 35A.11.020 and RCW 35A.12.190 authorize the City Council to adopt ordinances of all kinds to regulate its municipal affairs and appropriate to the good government of the City. THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO ORDAIN AS FOLLOWS: Section 1: Purpose. The purpose of this ordinance is to establish reduced rates for utilities provided to senior citizens, to low-income citizens, and to disabled citizens. Section 2: Amendment. The City Council amends East Wenatchee Municipal Code Chapter 4.34 as set forth in Exhibit A. Section 3: Severability. If a court of competent jurisdiction declares any provision in this Ordinance to be contrary to law, such declaration shall not affect the validity of the other provisions of this Ordinance. Section 4: Publication. The City Council directs the City Clerk to publish a summary of this Ordinance. The summary shall consist of the title of this Ordinance Section 5: Effective Date. This Ordinance becomes effective five days after the date its summary is published. Passed by the City Council of East Wenatchee, at a regular meeting thereof on this day of , 2012. • City of East Wenatchee Ordinance Page 1 of 3 • CITY OF EAST WENATCHEE, WASHINGTON By Steven C. Lacy, Mayor ATTEST: Dana Barnard, City Clerk Approved as to form only: Devin Poulson, City Attorney Filed with the City Clerk: • Passed by the City Council: Published: Effective Date: City of East Wenatchee Ordinance is Page 2 of 3 0 Summary of Ordinance No. 2012- Of the City of East Wenatchee, Washington On the day of , 2012, the City Council of the City of East Wenatchee, Washington approved Ordinance No. 2012- , the main point of which may be summarized by its title as follows: An Ordinance of the City of East Wenatchee amending East Wenatchee Municipal Code Chapter 4.34 to establish reduced rates for utilities provided to senior citizens, to low-income citizens, and to disabled citizens. Upon request, the City will mail a full text of this Ordinance. Dated this day of , 2012. CITY CLERK, DANA BARNARD • City of East Wenatchee Ordinance Page 3 of 3 :M1117Ly,1 0 Chapter 4.34 RATES FOR SENIOR CITIZENS LOW-INCOME CITIZENS, A DISABLED CITIZENS Sections: 4.34.010 Purpose and findings. 4.34.020 Definitions. 4.34.030 Rate reduction — Applicable utilities. 4.34.040 Application for reduced rate. 4.34.050 Penalty for false information. 4.34.010 Purpose and findings. The city council of the city of East Wenatchee finds that it is appropriate for the city of IEast Wenatchee to establish reduced rates for utilities provided by the city to senior citizens roqodpak to low-income citizens, and to isabled citizensfeakk*As of the city. (Ord. 09-13 § 4, 2009; Ord. 97-2 § 1, 1997) 4.34.020 Definitions. A. "Senior citizen" means a person who: 1. Resides within the city of East Wenatchee; • 2. Is 62 years of age or older; 3. Receives utility services from the city of East Wenatchee; and 4. Is the head of a household. B. "Disabled citizen" means a person who: 1. Resides within the city of East Wenatchee; 2. Is the head of a household; and 3. Qualifies for special parking privileges under RCW 46.16.381(1)(a) through (f), or a blind person as defined in RCW 74.18.020, or a person who qualifies for supplemental social security benefits due to a disability. C. "Low-income" is defined as follows: 1. Every single person whose combined disposable income as defined in RCW 84.36.383(5), as it now exists or is hereafter amended, is less than the qualifying amount set forth in RCW 84.36.381 (5)(b)(ii), as it now exists or is hereafter amended. 2. Every married couple, constituting a marital community, and whose combined disposable income as defined in RCW 84.36.383(5), as it now exists or is hereafter amended, is less than the qualifying amount set forth in RCW 84.36.381(5)(a), as it now exists or is hereafter amended. (Ord. 97-2 § 1, 1997) 434.030 Rate reduction — Applicable utilities. A. A utility rate reduction shall be applied to the residential monthly utility bills of senior citizens, of aft-eflow-income citizens, and of disabled citizens, in accordance with the terms of this chapter. B. The amount of the utility rate reduction for garbage and refuse collection, including any adjustments to said rate, shall be as established by city ordinance and is subject to amendment by • Exhibit A • future city ordinances. The utility rate reduction for garbage and refuse collection as of the date of passage of the ordinance codified in this chapter is set forth in Ordinance 2011-08. (Ord. 09- 13 § 5, 2009; Ord. 97-2 § 1, 1997) • is 4.34.040 Application for reduced rate. A. Applications for utility discounts shall be obtained from and filed with the city clerk, or his or her designee. The application shall be on a form prescribed by the city clerk, and shall contain the information necessary to evaluate the applicant's qualification for reduced utility rates. B. Submission of an application for a utility discount shall constitute a verification by the applicant that all information provided in such application is true and correct to the best of the applicant's knowledge. C. Once approved by the city clerk, the application shall become effective the next billing cycle following 30 days after approval of the application. D. Each application approved for low-income citizens disabled Fesidents is effective for 12 months commencing the first month the reduced rate becomes effective for the applicant. It shall be the sole responsibility of the low-income disabled applicant to re -apply for successive 12- month periods of eligibility for reduced utility rates. E. Each application approved for disabled citizens is effective for 12 months commencing the first month the reduced rate becomes effective for the applicant. It shall be the sole responsibility of the disabled applicant to re -apply for successive 12-month periods of eligibility for reduced utility rates. I Eli. Each application approved for a senior citizen will be effective commencing the first month the reduced rate becomes effective for the senior citizen applicant. 4.34.050 Penalty for false information. Any individual willfully providing false information to the city in an application for reduced utility rates shall forfeit his/her eligibility for future reductions in utility rates and shall be guilty of a misdemeanor punishable as set forth in EWMC 1.20.010, as the same now exists or is hereafter amended. Additionally, the individual shall be required to repay the amount of any utility discount received based upon such false information, together with interest at the rate of 18 percent per annum until repaid in full. (Ord. 09-13 § 7, 2009; Ord. 97-2 § 1, 1997) Sl t_ bmiZ eW J�, ,Ye nj t W(cai-4— MINUTES LINK TRANSIT BOARD OF DIRECTORS November 15, 2011 4:00 p.m. Link Transit Operations Base, 2700 Euclid Avenue, Wenatchee, WA ATTENDANCE Board members: Vice -chair Wayne Hawks, Larry Meyer, Bob Goedde, Keith Vradenburg, Ken Stanton, Russell Clark, Gordon Irle, and Sandra McCourt Link Transit Staff: Richard DeRock, Nick Covey, Lynn Bourton, Eric West, and Maria Hansen Absent/Excused. Chair Doug England, Ron Walter, Dale Snyder, and Mark Kulaas 1. CALL TO ORDER Vice -chair Wayne Hawks called the meeting to order at 4:00 p.m. With seven board members present, at that time, a quorum was established. (Chair Doug England along with several other fellow Link board members were excused from tonight's meeting because as county commissioners they were attending the annual WASAC conference.) 2. PUBLIC HEARING ON THE PROPOSED 2012 OPERATING & CAPITAL BUDGET Administrative Manager Nick Covey stated that during the October 18, 2011 budget workshop the Board had carefully reviewed the proposed 2012 Budget. Subsequent to the Board's directives given at the October meeting, a final budget for the 2012 fiscal year has been prepared with just a couple of minor adjustments as a result of a "formula" error that was found by staff in the operating budget, totaling $14,749. This amount cause a slight increase in the operating budget and to offset this error, the transfer to the Facility Reserve Account was reduced $5,000; from $200,000 to $195,000. Another adjustment was made where the transfer to the Contingency Account was reduced by $10,000; from $450,000 to $440,000. The final 2012 Operating Budget consists of $10,005,147.00; and the 2012 Capital Budget of $9,544,329 (that total includes $8,998,144 in grant funding). The final 2012 Operating & Capital Budget was developed based on the Board's goals and directives that were established at the February 4, 2011 board workshop. The purpose of the February workshop was to develop a plan to stabilize Link Transit's budget as a result of the national recession that began in 2009, which significantly affected Link Transit's funding base. Revenues fell almost 20% in 2009, and they have continued to be flat through 2010 and early 2011. Subsequently, Link Transit needed to reduce service and raise revenues; however the System has still focused its efforts to continue providing a valuable and effective service. Throughout 2011 staff's goal has been to develop and implement a sustainable service plan that could be followed for the next five years; a plan that would not require a sales tax increase. Subsequently, in 2011, the following major changes took place that should enable Link Transit to be financially stable for the next five years: 1) Link Transit raised its fares by 25% 2) A major redesign of service was implemented where weekday service was reduced by 5% and Saturday service by 57%. 3) Summary of Savings: Link Transit Board Meeting & Public Hearing on the 2012 Operating & Capital Budget November 15, 2011 Page 1 of 6 ♦ Savings for reduction of service/ staff reductions = $489,852 ♦ Reduction of non -bargaining staff by $206,294 ♦ Fare increase = $110,000 estimated ♦ Total savings = $806,146 Overall the 2012 Budget proposal is sound. Link Transit will have some extra funds to transfer to the reserve accounts and the system should remain financially stable for the next five years. However, Covey noted that each year always seems to have some new challenges arise that require staff to closely monitor and manage in order to continue to provide a solid, reliable, efficient, and safe transit service for the citizens of Chelan and Douglas Counties. Public Comments on the Proposed 2012 Budcieet No one rose to give public comment; subsequently the conclusion of the public comment period was noted and the Board proceeded to take the following action after conclusion of the Board's discussion and close review of the final 2012 budget proposal. Board Action: Bob Goedde moved to adopt Resolution 2011-13, establishing Link Transit's Operating and Capital Budget for the fiscal year January 1 — December 31, 2012 as presented during today's public hearing. Larry Meyer seconded the motion. VOTE: All in favor with seven board members present for this vote Motion Carried 3. BOARD ADMINISTRATION & COMMUNICATIONS • Preparing to Conduct the Annual Performance Evaluation of the General Manager Clerk of the Board, Maria Hansen, indicated that it was time to begin the annual General Manager Evaluation process. Hansen noted that Chair Doug England had chosen to follow the same steps that had been done over the past several years where a special Board Evaluation Committee would oversee the evaluation process. This special committee consisted of the past chair, the current chair, and the vice -chair. The annual evaluation form had been mailed to each board member along with an overview of the System's achievements during this past year of 2011. As each board member completes their evaluation form, they should return it, by mail, to the Clerk of the Board by December 2, 2011. Once all of the responses are gathered, the Evaluation Committee will meet to review the responses and prepare a summary for the Board and the General Manager. Hansen noted that all Link Transit Board members would have an opportunity to talk with the General Manager and discuss his overall performance and achievements in December during an executive session. Sandra McCourt arrived at 4:1Op. m. • Link Transit's 20-Year Anniversary Event Marketing Coordinator, Eric West, shared information about the events that were planned to commemorate Link Transit's upcoming 20-year anniversary on December 16, 2011. The week of December 12 through 16, 2011 promotional give away for riders will be carried out on the buses. On December 16'�' a stakeholder open house and public open house will be held at Columbia Station where a small reception will be set up with coffee, punch, and cookies for both riders and stakeholders to enjoy. Additionally, a "soft" kick-off of the electric trolley may also occur on December 16'h. Link Transit Board Meeting & Public Hearing on the 2012 Operating & Capital Budget November 15, 2011 Page 2 of 6 • • Special Presentation Regarding Link Transit's 20-Years of Operation Richard DeRock provided a short overview about Link Transit that he has been giving to different groups throughout the community. The presentation provided facts and figures about the growth and development of Link Transit's over the years including its: community partnerships, its service area, its ridership, how the agency is structured and how many people are employed by Link Transit. DeRock noted that Link Transit has several long-term employees and of those there are ten (10) coach operators who have driven for over fifteen years accident free. Board members asked DeRock to provide (e-mail) each of them a copy of the presentation. He noted that he would be happy to also attend their city meetings to share the presentation with their city councils. 4. PUBLIC COMMENT (Comments are heard; speakers are limited to 3-minutes per person) No public comments were given. 5. CONSENT AGENDA The following Consent Agenda items were submitted for approval: • Minutes of the October 18, 2011 board meeting • Accounts Payable Vouchers from October 2011, totaling $579,079.87 • Payroll Vouchers from October 2011, totaling $290,524.47 Board Action: There were no requests for corrections or changes to any of the Consent Agenda items. Ken Stanton moved to approve all Consent Agenda business items as presented. • Russell Clark seconded the motion. VOTE: All in favor with eight board members present for this vote. Motion Carried 6. DISCUSSION / ACTION ITEMS Contracts with Anova Works: (A) — Drug & Alcohol Testing Services Operations Manager, Lynn Bourton, indicated that since its inception, Link Transit has complied with federal drug and alcohol testing protocols for safety sensitive employees. Link Transit's policy also requires pre -employment testing for all employees. Bourton reported that the current agreement between Anova Works and Link Transit for pre- employment, post accident, random, and return to work drug and alcohol testing, and physical testing is due to expire at the end of December 2011. Quotes were sought from three potential providers: the Wenatchee Valley Medical Center, Central Washington Hospital, and Anova Works. Central Washington Hospital declined to bid and the quotes from the Wenatchee Valley Medical Center and Anova Works were comparable. Subsequently, staff recommends the continuation of the contract with Anova Works for a period of one (1) year, which will continue to comply with federal regulations as set out by the Federal Transit Administration (FTA). Board Action: Larry Meyer moved to renew the contract with Anova Works of Wenatchee to provide drug and alcohol testing services for Link Transit's safety sensitive employees in accordance with FTA rules and regulations. Keith Vradenburg seconded the motion. VOTE: All in favor with eight board members present for this vote • Motion Carried Link Transit Board Meeting & Public Hearing on the 2012 Operating & Capital Budget November 15, 2011 Page 3 of 6 • Contracts with Anova Works: (B) — ADA Eligibility Determination Service In accordance with the American's with Disabilities Act (ADA), in 1996 Link Transit began the program of determining the eligibility of individuals for the use of LinkPlus paratransit services. In 2004, after undergoing a budget and staff adjustment, Link Transit began contracting for this service with an outside professional. In 2004 Work Care responded to Link Transit's Request for Proposal (RFP) and was awarded the initial contract. The Contract was re -bid in 2007 and Work Care was once again the successful bidder; however, in 2009 Work Care changed its name to Anova Works. The term of the current contract was for three years (2008 — 2011) with a provision that Link Transit could renew the contract for two (2) additional one-year terms. . Lynn Bourton stated that Link Transit is satisfied with the performance of Anova Works and the costs have remained stable; Bourton recommended extension of the contract for one more year. Board Action: Keith Vradenburg moved to approve extending the current contract with Anova Works to provide ADA Eligibility Determinations for a one year term through December 31, 2012. Bob Goedde seconded the motion. VOTE: All in favor with eight board members present for this vote Motion Carried Contract with TDS Tires Link Transit's current contract with Tires & Distribution System, Inc. (TDS) will expire on December 31, 2011. Contractual language allows for a one (1) year extension to this contract and TDS has indicated, in writing, that they are willing to offer 2009 pricing for the 2012 year for Link Transit with a minor three -percent (3%) cost increase on some of the tire brands. Richard • DeRock stated that staff's recommendation is to accept the one year extension to the Contract, which will provide cost savings by limiting the amount of 2012 tire and service labor cost increases that would be associated with rebidding this contract. Board Action: Ken Stanton moved to approve extending the current contract with TDS Tires to provide tires and related tire services for an additional one year term beginning January 1, 2012 through December 31, 2012. Larry Meyer seconded the motion. VOTE: All in favor with eight board members present for this vote Motion Carried 7. STAFF REPORTS Monthly Financial Report Nick Covey presented the report of the Agency's financial activity through October 2011: 2011 Sales Tax: ♦ September 2011 sales tax (earned in the month of July 2011) $ 697,433 ♦ Over budgeted amount for the month by 2.5% $ 16,758 ♦ YTD Sales Tax Collection $ 4,167,585 ♦ YTD budget amount $ 3,994,253 ♦ Over YTD budgeted amount by 4.3% $ 173,332 ♦ Last years YTD sales tax amount $ 4,035,715 ♦ Over last year's YTD sales tax amount by 3.3% $ 131,870 2011 Fares Collected: is ♦ Fares collected $ 78,173 Link Transit Board Meeting & Public Hearing on the 2012 Operating & Capital Budget November 15, 2011 Page 4 of 6 • ♦ YTD fares collected $ 565,424 ♦ Over YTD budget by 15.7% $ 88,857 ♦ Over YTD 2010 fares collected by 14.4% $ 81,232 2011 Operatinq Budget -to -Actual: ♦ Budget year elapsed = 75% $ 7,862,322 ♦ Operating budget spent = 73% $ 7,606,365 ♦ <Over> Under Budgeted Amount $ 255,957 Cash Accounts: ♦ Cash w/Treasurer — 2011 over 2010 $ 295,371 ♦ Investments —2011 under 2010 $ (742,406) ♦ Vehicle Reserves - 2011 over 2010 $ 371,971 ♦ Facility/Equipment Reserves -2011 under 2010 $ (21,142) 2011 Capital Expenses: ♦ Hewlett-Packard — Network Monitor $ 3,860 ♦ Dept of Licensing —Trolley License/Sales Tax $ 31,854 ♦ Beckstead Electric -Charging Station $ 13,258 ♦ Project Management — Travel $ 2,267 Update on the Electric Trolley (E-bus) Project Richard DeRock reported that a new trolley was delivered two weeks ago that was equipped with nickel cadmium batteries. The trolley with Ion Lithium batteries was shipped back to the E- • bus manufacturing plant to be worked on — to address the battery leak issues. For the short term, during the upcoming couple of months, Link Transit will operate the battery -electric trolleys equipped with nickel cadmium batteries, which work on a slow -charge system only. These trolleys will be used for at least half of the service day because a charge will allow the vehicle to operate for approximately 60-miles. In the meantime, E-bus is redesigning the cooling plates for the lithium ion batteries and thus far the new design is proving effective. E-bus has two trolley vehicles that they are using to test the newly designed battery packs. 0 DeRock also stated that notice was also received yesterday that Link Transit has been awarded its TIGGER Grant request for some additional battery -electric vehicles. The plan is for these to be modern style buses (not trolleys) that would be operated in the urban communities of Wenatchee or East Wenatchee. The plan would be to try operating the "regular bus style" battery -electric buses on routes 11 and 12 in East Wenatchee, or one of the urban routes in Wenatchee. These vehicles will be used to replace the aging OPUS buses. He noted that Link Transit has experienced some issues to obtain parts for the OPUS buses and subsequently, the changeover to the battery -electric vehicles will be most welcome. DeRock noted that once the additional battery -electric vehicles are launched in service, Link Transit will have the largest battery -electric vehicle fleet in the U.S. Score Cards — Monthly System Performance Report Richard DeRock presented the score card report, which provides an overview of the System's performance each month, beginning in January 2011. This report is used to measure how the Agency is meeting the annual performance goals that have been set by the Board through the annual budgeting process. Link Transit Board Meeting & Public Hearing on the 2012 Operating & Capital Budget November 15, 2011 Page 5 of 6 • General Manager's Report Richard DeRock shared the following information: • A special report titled: Impacts of the U.S. Recession on Link Transit since 2008 was prepared based upon a request by local legislators. The purpose of the report was to help our state legislature better understand the impacts that the downed economy has had on our local transit system. DeRock shared a copy of the report with the Board: - Revenues Actual sales tax revenue fell 17.0% Predicted sales tax revenue fell 28.3% - Ridership Fixed Route ridership fell 12.0% Paratransit ridership decreased 14% - Service Hours Fixed Route service hours reduced 16.1% Paratransit service hours same - Fares Base Fare Increased from $0.50 to $1.25 - a 150% increase Pass Prices increased from $20.00 to $50.00 — a 150% increase Paratransit fares increased from $0.50 to $1.50 — a 175% increase Paratransit passes eliminated - Employment Full time employment reduced 16% - Capital Replacement and Investment Capital spending limited to match requirement for grants • DeRock reported that Link Transit has had some serious problems with the • "International" brand cutaways that were purchased last year. The problems have been centered in the emission system and thus far all three of Link Transit's International vehicle's engines have failed. Link Transit has been doing its part to maintain the vehicles as effectively as possible; in fact, International has been at Link Transit at least once per week working on the issues. While the repairs are currently covered by warranty; but it is important for International to address the issue with its diesel engines. DeRock noted that new emission standards are causing issues with several other vehicles as well, including some issues with the Gillig buses that have Cumins engines - especially with the engine's particulate traps. He assured the Board that both manufacturers (International and Cumins) are working with Link Transit staff to address the issues at hand. • 8. ADJOURNMENT All business listed on the Agenda had been addressed and with no further business to conduct, Vice -chair Wayne Hawks adjourned the meeting at 4:58 p.m. Minutes Submitted by i1I,16a,z Maria Alejandra H9sen, Clerk of the Board Link Transit Board Meeting & Public Hearing on the 2012 Operating & Capital Budget November 15, 2011 Page 6 of 6 S.uJIfYVUJKX ,�J� �W'�P.L( �ewWN Q J Housing Authority of Chelan County & the City of Wenatchee 1555 S. Methow Wenatchee, WA 98801 MINUTES I. CALL TO ORDER November 17, 2011 Rescheduled Meeting The meeting was called to order at 8:33 a.m. Commissioners present were: Lisa Romine, John Bryant, Leo Sax, Sandy McCourt, Lalla Przespolewski, Al Schuster, Jesse Lane, Alan Beidler and Bill Dronen. Commissioner Hal Porter was excused. Staff representatives present were: Executive Director, Alicia McRae; Assistant Director, Marty Stierlen; Accounting Director, Kori Riblett and Accounting Specialist, Toni Peterson. II. PUBLIC COMMENT (none) III. ADMINISTRATIVE AFFAIRS A. MINUTES The minutes of the October 27, 2011 regular meeting were unanimously approved on a motion by Al Schuster and seconded by John Bryant. B. FINANCIAL STATEMENTS No financial statements were presented. C. VOUCHERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.090, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing made available to the Board. (See Attached.) As of October 31, 2011, on a motion by John Bryant, seconded by Lalla Przespolewski and carried unanimously, payment was approved for the vouchers included in the above referenced list and further described in the following table: • • ACCOUNT CHECK FROM CHECK TO TOTAL General Operating/Section 8 HAP 45910 45928 45933 46123 46132 45910 45931 46106 46129 46168 289,393.33 EFT October 1 October 31 195,434.90 Total 484,828.23 MSP Operating 3361 3370 3363 3373 5,996.08 MSP EFT October 1 October 31 479.48 MSP Special Reserves Total 6,475.56 RR Reserve 25254,25256-25257 4,041.31 EG Reserve 25260 1,560.44 WH Reserve WS Reserve 25259 1,316.09 MSV Reserve 25255 1,487.00 HG Reserve 25258 200.00 Total 8,604.84 BR Operating 10503 10515 10510 10519 17,749.72 BR EFT October 1 October 31 917.42 BR Replacement Reserves Total 18,667.14 TOTAL $518,575.77 IV. REPORTS A. Chairperson's Report Lisa reported that Leo's term is up the end of December and he will not be requesting re- appointment. Alicia added that Leo has been on the board for 17 years. The board will host a luncheon for Leo on December 13'h. Alicia will select a place and let everyone know. Executive Session • At 8:40 a.m., Chairperson Lisa Romine called for a 30 minute Executive Session to consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price. The regular meeting resumed at 9:44 a.m. B. Director's Report Alicia informed the board that Bill Dronen and John Bryant had expressed interest in participating on the Finance Committee. The By -Laws specify that there should be no less than three and no more than five members. There are currently three members on the committee. The board was in favor of both Bill and John joining the Finance Committee. Alicia passed around Resolution #I I-10, which was approved at the last meeting but still needed signatures. Due to the Christmas holiday, it was determined that the December meeting would be scheduled for December 15`h at 8:15 a.m. C. Development Report • Marty reported that she received a call from Tim Burns, with KOP Construction, who was the contractor for Bello Rio and Vista Del Rio. He told Marty that while recently in town he had driven by the properties and wanted to commend the Housing Authority on the excellent condition they were in and how impressed he was. Marty reported that staff will be reviewing preliminary plans for the Applewood ADA rehabilitation, which should go out to bid in January. RD has given approval for Phase I of the Wenatchee II irrigation project. The Lake Chelan Community Apartment roofing project is complete. No bids have been received for the retaining wall at Morning Sun Park. Plumbco has been selected to provide backflow inspection services at Bello Rio. Proposals for engineering services for Washington Square have been received and will be reviewed by staff for recommendation at the next meeting. Upper Valley MEND informed us that they received a $250,000 line of credit for the Meadowlark project and that Chelan County approved their environmental assessment. • Marty will advertise next week for an internal small works roster. Executive Session At 8:55 a.m., Chairperson Lisa Romine called for a 30 minute Executive Session to consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge • regarding such consideration would cause a likelihood of increased price. The regular meeting resumed at 9:00 a.m. D. Asset Managers/Occupancy Report Kori reported on a neighborhood meeting in Chelan that several staff members attended, regarding drug houses and increased crime in the Gibson Street neighborhood. It appears that the community is happy with the improvements that have been made at Gibson Gardens. Kori informed the board that the proposed budgets were not approved by RD. She is amending the budgets and will bring them to the board for approval. ADJOURNMENT The meeting was formally adjourned at 9:10 a.m. Alicia McRae, Secretary • Approved as Written: Board Signature Here • Minutes Board of Health Meeting Chelan -Douglas Health District November 21, 2011 Keith Goehner, Chair, called the meeting to order at 4:00 p.m. The Chair, Russ Clark, Doug England, Karen Rutherford, Ken Stanton, Peter DeVries, and Steve Jenkins provided a quorum. Consent Agenda Peter DeVries, Leavenworth City Council, made a motion to approve the consent agenda that included the October 17, 2011 Board of Health meeting minutes, October Payroll in the amount of $158,879.73, October Benefits in the amount of $41,475.27, and approval of Voucher No. 20110559 through 20110623 in the amount of $35,835.84. Russ Clark, Mayor, City of Rock Island, seconded the motion, Ken Stanton abstained, and the motion carried with the approval of six Board members. Program Update Stephanie Snitily, Communicable Disease Coordinator and Jackie Dawson, Epidemiologist, gave a brief influenza update. Board Discussion The Health District currently pays about $7,000/month for its building. Russ Clark raised the possibility that Chelan County could purchase the building and lease it to the Health District at a rate lower than the current payment. There was some discussion but the Board needs an update on the status of the current building contract, which Barry will present at the December meeting. The Chair reported on the recent WSAC (Washington State Association of Counties) meeting he attended. In a session on sustainable funding for public health he found that not all the commissioners agree with him that public health is a basic responsibility of government. None Public Comment New Business The Administrator presented Resolution 2011-002 for approval. This resolution authorizes the Health District to declare two of the pool vehicles (the 2000 Ford Taurus and 2002 Toyota Camry) surplus property to be sold at the Chelan County public auction in June 2012. Steve Jenkins made a motion to approve the resolution. Ken Stanton seconded the motion and it carried unanimously. The Chair recommended that the two vehicles be sold now rather than storing until June. The Administrator will check into options for selling these two vehicles.. The Administrator requested authorization to purchase an all wheel drive Ford Escape XLS off the Washington State contract for $18,424.00. His only concern is that the auto would be • Board of Health Meeting Minutes November 21, 2011 Page 2 of 3 purchased from a dealership in Longivew, not locally. The Health District has been putting $15,000 each year in a reserve fund for the purchase of replacement vehicles. The reserve fund balance is approximately $75,000 currently. Two questions were raised: 1) could the District purchase the same vehicle for the same price from a local dealership under the state contract, and 2) could the District purchase a vehicle under one of the bids received by either county. The Administrator and Diane Forhan, Associate Administrator, Support Services will contact the state auditor and check into these options and report back next month. The Administrator presented a summary of legal fees paid to Ogden, Murphy, Wallace for 2011. As the legal fees for the Larry Reznicek issue is approaching $5,000.00, he requested authorization for an additional $3,000.00 for legal services. Ken Stanton made a motion to approve the request. The motion was seconded by Peter DeVries and carried unanimously. Unfinished Business Connie Dorner, Secretary to the Board, reported that she received the last two administrator evaluations and included a summary of the results in the Board packet. The Chair summarized that the scores were very positive and all the comments were complimentary. He expressed his appreciation to the Administrator for his efforts. Diane Forhan, Associate Administrator, Support Services, explained the updates to the proposed • 2012 budget. Reports Bev Neher, Nursing Director, reported that a preliminary Lyme disease case has been ruled out after additional testing. The new diagnosis was "Relapsing Fever" which is carried by lice and ticks. Mary Small, Associate Administrator, Community Health and Preparedness, reported that she attended a great training in Seattle called "Tale of Our Cities, Resilience and Recovery" Mary also reported on the state discussions on centralization of PHEPR drug stockpiles. Diane Forhan, Associate Administrator, Support Services, reported that, effective October 31, the Health District has received 91.3% of the budgeted revenue and spent 83.1 % of the expenses budgeted for 2011. Barry Kling, Administrator/Environmental Health Director, reported that the food program is now current on the backlog of food establishment inspections we had earlier in the year. The Administrator/Environmental Health Director noted that the Food Advisory Committee (representatives of permitted food service operators) met this month. Most of the discussion focused on temporary food permits. After the committee creates a stable proposal, they will bring it to the Board for review and possible approval. The main purposes of the changes are to provide more equitable fees for low -risk vendors, and to better manage the growing number of farmers' markets. The Health District is conducting an investigation of the recent drowning fatality at the Board of Health Meeting Minutes November 21, 2011 Page 3 of 3 • Wenatchee High School pool (which we permit) for the purpose of assuring that measures are taken to prevent any future incidents. It is early in the process and the Health District does not have any findings as to necessary corrective measures, if any. A request for summary judgment has been filed by the Health District in Chelan County Superior court regarding the nuisance property on Lester Road. A hearing has not yet been scheduled. A long standing problem property at 2945 Malaga/Alcoa Highway (no operable septic system, garbage accumulation on the property) was moving closer to resolution when the owner agreed to evict the tenants and grant the Health District permission to enter the property for cleanup. However, the people living there were slow to vacate and we believe they just recently left. The water was already turned off by the Malaga Water District for nonpayment, alleviating the septic issue. Two days ago the home on the property burned down. Executive Session Ken Stanton, Douglas County Commissioner, made a motion to go into executive session at 5:10 p.m. to discuss labor negotiations for 10 minutes. Doug England, Chelan County Commissioner, seconded the motion and it carried unanimously. The regular meeting reconvened at 5:21 p.m. Adiournment • Russell Clark, Mayor, City of Rock Island, made a motion to adjourn the meeting at 5:22 p.m. Peter DeVries, Leavenworth City Council, seconded the motion and it was unanimously approved. Keith Goehner, Chair • 3 • 0 Next on the agenda Nov 1, 2011 12:00 PM City eliminates paper meeting packets for elected officials and committee members with tablets Iowa is not known as a hotbed for tech -savvy trailblazers, but the booming town of North Liberty is harnessing technology to forge a paperless future. The town's population, just 5,000 a decade ago, has grown to more than 13,000 residents, according to the 2010 Census. And like any growing town, North Liberty's City Council, planning board and other municipal commissions were using reams of paper to distribute agendas, financial documents, permit applications, poster -sized blueprints and other information for public meetings. whenever, wherever. North Liberty, Iowa, officials now view meeting packets on Wads instead of paper. 1 1 "With the boom, we've spent the last couple years planning for the next 10," says City Administrator Ryan Heiar. That meant not only building a more adequate meeting space, but streamlining the �ItIM process of prepping for each council meeting. The paper -based j x 1l process required city staff to print nearly 1,000 pages of paper, sort and bound packets, and hand -deliver them to councilors twice each month. In August, after months of research, talking to nearby municipalities and counties, and number crunching, the city moved thousands of formerly printed pages onto iPad 2s. The devices were selected instead of laptops or e-readers because of their usability, flexibility, mobility and cost. North Liberty purchased 18 Pad 2s and apps, enough for the mayor, each city council member, some staff ` members and a few to share among other boards that meet with various frequency. Heiar believes the devices will pay for themselves in about a year, saving the city about $10,000 annually just for the twice -a -month council meetings. Instead of driving printed packets to individual councilors, the packets are now delivered digitally via a service called Dropbox. the packets, councilors download them to their iPads and can access the information During meetings, city officials have ready access to their documents and notes. Elected officials and city staff have grown fond of the devices. Councilors, most of whom are middle-aged, have embraced the new touch -screen technology. "It's taken some getting used to," says Mayor Tom Salm. "But after just a couple weeks, I feel like a pro. It's great to use a technology that not only helps us go green, but also is on the cutting edge. I think my grandkids are jealous." Project: Tablet computers for city administrators Jurisdiction: North Liberty, Iowa Agency: Mayor, City Council Vendor: Cupertino, Calif. -based Apple Date: August 2011 Cost: $10,000 • Moving toward a paperless government office • Mobilizing governments: Using mobile technologies to meet city/county resident needs f CITY OF EAST WENATCHEE January 9, 2012 • East Wenatchee City Hall Attention: City Council 271 9th St. NE East Wenatchee, WA 98802 • 40 Dear City Council, I am an active member of Occupy Wenatchee. J Q N 1 0 2012 RECEIVED By: Enclosed please find a letter that was mailed to the Safety Valve on January 9, 2012. I wanted you to be aware of this letter before it is published. Thank you for your time and consideration, Rocci Hildum 2737 Debord Dr. Wenatchee, WA 98801 rhildum(j ,nwi.net 509-264-4686 CITY OF EAST WENATCHEE N 10 2012 RECEIVED • By. Occupy Wenatchee is a small but dedicated group of community activists opposed to the inequality of wealth and influence that is concentrated in the hands of less than 1 % of the population and the resulting oppression of the other 99%. Occupy Wenatchee is part of a larger national and international movement committed to confronting and changing this inequality. One of the most powerful motivators of this movement is the global financial crisis, the result of speculative transactions and in many cases illegal activities of too big to fail national and multi- national corporate banks and financial institutions that received near 0% interest loans from the FED. These financial institutions have accepted trillions in bail outs and compensate top executives with obscenely large salaries and bonuses that are grossly disproportionate to their contribution to the institution, the salary of the common worker, and the 99%. Occupy Wenatchee, acting on behalf of the citizens of this valley, has contacted local governments and learned the following: the City of Wenatchee banks at Cashmere Valley Bank; the City of East Wenatchee banks at Banner bank; Douglas County banks at Cashmere Valley Bank and Banner Bank; and at least some departments of Chelan County banks at the Bank of America. Cashmere Valley Bank and Banner Bank are local institutions, while the Bank of America is a large multi -national corporate bank. According to the General Accounting Office Fed Audit, Bank of America received $1.344 Trillion in near 0% FED loans. We would like to commend the Cities of Wenatchee and East Wenatchee and Douglas County • for banking locally, which invests money in the local economy and does not reward corporate institutions with their patronage. At the same time we advocate for the Chelan County Commissioners to immediately direct all departments to close accounts with the Bank of America and any other national or multi -national corporate financial institutions and commit to banking locally to support the local economy. Rocci Hildum on behalf of Occupy Wenatchee 9 10 Stan Morse WSBA #9627 Attorney at Law P.O. Box 2128 Chelan, WA 98816-2128 509-682-7239 Facsimile: 509-682-7240 Stan@stanmorse.com December 28, 2011 Question: Is there a legal prohibition against legislative interference with financing arrangements for the Greater Wenatchee Regional Events Center Public Facilities District's Town Toyota Center project? The answer is, Yes. Federal and State Constitutions prohibition legislative interference with the right to contract. In June 2006 the Cities of Wenatchee, East Wenatchee, Entiat, Cashmere, Rock Island, Chelan, Waterville, and Chelan and Douglas Counties, entered into an Interlocal Agreement ("Agreement"), a copy of which is attached as Exhibit A, for the creation of a public facilities district ("District"). Per the last paragraph on the first page, financing of said District was to come from imposition of a sales and use tax of 0.033 percent pursuant to RCW 82.08 and 82.12. Interlocal agreement law is found under RCW 39--Public Contracts and Indebtedness, and specifically under 39.34. Section 8 of the Agreement provides: "Limitation on Liability. All liabilities incurred by the District shall be satisfied exclusively from the assets, credit, and properties of the District, and no creditor or other person shall have any right of action against or recourse to the parties hereto, their assets, credit, or services, on account of any debts, obligations, liabilities or acts or omissions of the District." In the letter transmitting the drafts of the proposed enabling ordinance and Agreement, attached as Exhibit B, Wenatchee's mayor Johnson and City attorney Steve Smith, on the third page of the memorandum state: `By approving the Resolution of Ordinance, each of the entities is entering into an agreement to form a Public Facilities District which will in turn contract with the city of Wenatchee for the management and financing of a turn -key events center. The city of Wenatchee is the only entity with additional commitment to the Public Facilities District. Each of the participating entities would essentially be agreeing to allow the Department of Revenue to divert .033% of the state sales tax from the state's share to the Public Facilities District to finance the bonds that will be issued to support the purchase of the events center. There is no other cost to each contracting entity." In Ruano v. Spellman, 81 Wn.2d 820, at 825, the Court stated that: "[3] Article 1, section 10 of the United States Constitution mandates that "No state shall ... pass any ...law impairing the obligation of contracts. Article 1, [and] section 23 of our state constitution states that "No . . . law impairing the obligation of contracts shall ever be passed." These provisions are Morse opinion letter December 28, 2011 • Page 2 substantially the same and are to the same effect. Tremper v. Northwestern Mut. Life Ins. Co., 11 Wn.2d 461, 119 P.2d 707 (1941). It is fundamental that this prohibition reaches any form of legislative action, including delegated legislative activity by a municipal corporation or even direct action by the people. Ross v. Oregon, 227 U.S. 150, 57 L. Ed. 458, 33 S. Ct. 220 (1913); Johnson v. McDonald, 97 Colo. 324, 49 P.2d 1017 (1935)." The Washington State Supreme Court in Pierce County v. State of Washington, 159 Wn.2nd 16 (2006) confirmed the great level of Constitutional protection for public contracts. The following citations come from that decision. "This court uses a three-part test to determine if there has been an impairment of a public contract: (1) does a contractual relationship exist, (2) does the legislation substantially impair the contractual relationship, and (3) if there is substantial impairment, is it reasonable and necessary to serve a legitimate public purpose. Tyrpak , 124 Wn.2d at 152 ; Caritas Servs. , 123 Wn.2d at 403 ; Carlstrom v. State , 103 Wn.2d 391 , 694 P.2d 1 (1985). However, even minimal impairment of contractual expectations in public contracts violates the contract clause where there is no real exercise of police power to justify the impairment. Tyrpak , 124 Wn.2d at 156 . • "[T]o exempt a contract from constitutional protection demands significant justification." Id. States and other government entities have rarely been able to justify impairing contractual obligations entered into in financial markets, such as the public bond market. See, e.g. , Caritas Servs. , 123 Wn.2d at 405 (in almost every case, the United States Supreme Court has held a governmental unit to its contractual obligations when it enters into financial or other markets). As the Supreme Court noted in United States Trust Company of New York v. New Jersey, 431 U.S. 1, 27, 97 S. Ct. 1505, 52 L. Ed. 2d 92 (1977), the only time in this century the alteration of a municipal bond contract has been sustained was in 1942 when a bankrupt local government was placed in receivership by a state agency and a plan was approved that was adopted with the purpose and effect of protecting creditors (citing Faitoute Iron & Steel Co. v. City ofAsbury Park, 316 U.S. 502, 62 S. Ct. 1129, 86 L. Ed. 1629 (1942)). "Next, the intervenors contend that the initiative did not impair the Sound Transit bonds because "the power... to change tax policy" far outweighs any impairment of the bond contract created by the initiative and Washington Constitution article VII, section 1 prohibits surrendering or contracting away the power to tax, which the intervenors contend Sound Transit did. The intervenors point to no authority for this contention. Indeed, long-standing authority is to the contrary. For example, in Continental Illinois , 696 F.2d at 699-700, the court rejected a similar argument made by defendants that a Washington municipal corporation remains subject to state regulation and cannot be allowed to contract itself out from state control. As the court explained, the "argument misperceives the nature of the restriction on state action imposed by the contract clause. As a creature of the state, a municipal corporation derives its power from the legislature. Once having granted certain powers to a municipal corporation, which in turn enters into binding contracts with third parties who have relied on the existence of those powers, the legislature (or Morse opinion letter December 28, 2011 . Page 3 here, the electorate) is not free to alter the corporation's ability to perform." Id. (citing Louisiana ex rel. Hubert v. New Orleans, 215 U.S. 170, 175-78, 30 S. Ct. 40, 54 L. Ed. 144 (1909); Wolff v. New Orleans, 103 U.S. 358, 365-68, 26 L. Ed. 395 (1880)). See also O'Brien, 86 Wn.2d at 350 (State bound not to withdraw taxing authority under the constitution)." I contend that the law proposed to address the Town Toyota Center problem by providing full financing to the District while at the same time imposing a condition upon the otherwise contractually protected cities and two counties to either enact new taxes or to have revenues withdrawn directly from their state sales tax entitlements, fundamentally affects in a negative way the cities' and counties' contractual rights, and is therefore an unconstitutional impairment of the contractual interlocal agreement between the parties. Respectfully, 10"r- , Wolf" Stan Morse 0 2230276 ' -- `� �I�I III► Page: 2 of 15 i��1►IIII I 96/21/2666 84:83P ►I►MINI 11� Nft N Ii� i IIIIINI s.ee _ O� � ORFMn tNRBPIF 4 Chelan Co, UA • AGREEMENT BETWEEN THE CITY OF WENATCHEE, THE CITY OF EAST WENATCHEE, THE CITYOF ENTIAT, THE CITY OF CASHMERE, THE CITY OF ROCK ISLAND, THE CITY OF CHELAN, THE TOWN OF WATERVILLE, CHELAN COUNTY, AND DOUGLAS COUNTY FOR THE CREATION OF THE GREATER WENATCHEE REGIONAL EVENTS CENTER PUBLIC FACILITIES DISTRICT; ,c THIS INTERLOCAL AGREEMENT. is made 2006, between THE CITY OF Wa OF EAST WENATCHEE ("East Wenatchee"), THE CI'I OF CASHMERE ("Cashmere"), THE CITY OF ROCK OF CHELAN ("Chelan', THE TOWN OF WAT COUNTY ("Chelan County") and DOUGLAS COUNTY WHEREAS chapter 35.57 RCW authorizes the le group of cities located in a county or counties, each with and the legislative authorities of any county or counties i into an agreement under chapter 39.34 RCW, the Interloca joint operation of a public facilities district ("Districi operation of a regional convention center; and I entered into this 4a Say of [ CHEE ("Wenatchee"), THE CITY OF ENTIAT ("Entiat"), THE CITY :.AND ("Rock Island"), THE CITY VILLE ("Waterville"), CHELAN Douglas County"), slative authorities of any contiguous population of less than one million, which the cities are located, to enter Cooperation Act, for the creation and ) to facilitate the construction and WHEREAS Wenatchee, East Wenatchee, Entiat, Cashmere, Rock Island, Chelan, Waterville, Chelan County and Douglas County recognize. and find that there is a public need for • a new regional events center (the "Regional Center") to b',e, located in Wenatchee, and recognize the public use and benefit to the citizens of these municipalities to be derived from the construction and operation of such Regional Center; and WHEREAS the Laws of Washington, Chapter 298, 2006 Regular Session, Section 1, authorize Districts created under chapter 35.57 RCW before July 1, 2006 in a county or counties in which there are no other Districts on the effective datbi of that section and in which the total population of the District is greater than 90,000 that commences construction of a new regional center before February 1, 2007 to impose a sales and !use tax under chapter 82.14 RCW to Regional Centers; and Entiat Cashmere, Rock Island, Chelan, WHEREAS Wenatchee, East Wenatchee, , Waterville, Chelan County and Douglas County desire. :to create the District to facilitate the Center inj Wenatchee prior to February 1, 2007; commencement of construction of the Regional and WHEREAS the District will assist in financing lie Regional Center through imposition of a sales and use tax of not more than 0.033 percent to be collected from those persons who are taxable by the State of Washington under chapters 82.08[and 82.12 RCW upon the occurrence of se admission any taxable event within `the District. Further, the District may additiionded that ally imo authorized by chapter 3.57 RCW; p the imposition and parking taxes through means of admission and parking taxes shall apply only to admission to and parking at the Regional Center; 1 Ll �� 2238276 �IIIIIIIIIIIII�IIIIIII�IIIIIIIIII� IIII� 66g21 806 04:03P III III JOHNSON 6Rl1KROSER DRENELO IHMMF 46.68 Chelan Co, uR NOW, THEREFORE, it is agreed by and between the parties as follows: Section 1. Purpose. The purpose of this Agreement is to create a Public Facilities District pursuant to chapter 35.57 RCW to facilitate the ;commencement of construction and operation of a new Regional Center located in Wenatchee before February 1, 2007, pursuant to the Laws of Washington, Chapter 298, 2006 Regular Sessi'ori, Section 1. Section 2. Creation of District. 2.1 Formation. The District shall be formed upon execution of this Agreement by each party hereto, by and through the designated public officials as authorized by the respective legislative bodies of the parties hereto, pursuant to a Iawfully enacted ordinance or resolution. The District shall be named the "Greater Wenatchee Regional Events Center Public Facilities District." 2.2 Municipal Corporation. The District shall be a municipal corporation and an independent taxing "authority" within the meaning of Article V1I, Section 1 of the State Constitution, and a "taxing district" within the meaning�of Article VII, Section 2 of the State Constitution. 2.3 Boundaries. The boundaries of the (District shall be coextensive with the boundaries of Chelan and Douglas Counties. The District; area shall include the unincorporated areas of Chelan and Douglas Counties and the incorporated areas of Entiat, Cashmere, Rock Island, Chelan, Waterville, Wenatchee and East Wenatchee. 2.4 Powers. The District shall have on,iy those powers as provided for under its charter, RCW 83.14.390, and chapter 35.57 RCW, as! each may be amended from time to time. Section 3. Appointment of a District Board-i and Organizational Meeting. The legislative bodies of the parties hereto shall appoint the seven members of the District Board of Directors ("Board") in accordance with the terms of:?chapter 35.57 RCW. The County Commissioners of Chelan and Douglas Counties and the�;-bty Council of East Wenatchee shall each appoint one Board member for a four-year term! The members appointed by East Wenatchee, Chelan County and Douglas County shall ,_not be a member of their respective legislative bodies. Wenatchee shall appoint four members based on recommendations received from local organizations that may include, but are not limtied to, the local chamber of commerce, local economic development council, local labor council and a neighborhood organization that is directly affected by the location of the regional centerYOf the four members appointed by Wenatchee, one shall serve a one-year term, one shall serve a two-year term, one shall serve a three-year term, and one shall serve a four-year term. Every member or members appointed by a or at will by city or a county to the Board may be removed for missing1two consecutive meetings his or her appointing city or county and a new member appointed to fill the unexpired term in the same manner as described above. In the event a city or county withdraws pursuant to Section 11 herein, the term of the member appointed by the withdr4wing city or county shall expire upon the effective date of the withdrawal, and Wenatchee shall. appoint a member to that position for the four year term and each succeeding term. Members of the District Board shall be residents of t r 2 P iDGlDG0BP 05/05106 • 2230276 111111 IN 1111 111III1Ii1INI 1111111111111111 66'''21 �2NO6 64:03P lill JOHNSON GAWOGEft DREWELO IHMM 4s.99 Chelan Co, WA the Public Facilities District at all times during their term of service on the District Board. Members of the District Board need not be residents of theirIf appointing jurisdiction. Within 10 days after this Agreement is executed, theMayor of Wenatchee or his designee shall call an organizational meeting of the initial Board; ;giving at least three days' advance written notice to each Board member, unless waived in vgriting. At such meeting, the Board shall organize itself, shall adopt the Charter referenced '=%n Section 4 below, shall adopt the Bylaws referenced in Section 5 below, may appoint officers, and shall select the District's place of business. Section 4. Adoption of Charter. The District shall, at the first meeting of the Board, adopt and operate under the charter attached hereto a$ Exhibit "A" (the "Charter"), and incorporated herein by this reference, which shall be adopied at the first meeting of the Board. The Charter may be amended only by mutual agreement authorized pursuant to a resolution or ordinance of the legislative bodies of the parties hereto. Section 5. Adoption of Bylaws. The District shall, at the first meeting of the Board, adopt and operate under Bylaws consistent with those Bylaws attached hereto as Exhibit "B" and incorporated herein by this reference. The Bylaws may be amended as provided in the Charter and by the legislative bodies of the parties hereto as necessary. Section 6. Regional Center. 6.1 General. It is agreed that construction of the Regional Center shall begin prior to February 1, 2007. In the event that construction ofrthe Regional Center has not began by such date, the District shall be dissolved as provided in the Charter. Upon completion of construction, the Regional Center shall be the property of tae District. 6.2 Desim Construction and Qpeeratiot shall select property owned by a developer and enter into; developer to design, develop, and construct the Regional conceptual design and location heretofore presented to the acquire the Regional Facility once it is complete. The Di agreements with Wenatchee for the operation and maint District shall enter into an agreement or agreement development, construction and operation of the Region Wenatchee shall select, and enter into agreements with design, development, and construction of the Regional i conceptual design and location heretofore presented to oversee and make all decisions relative to the design, c Regional Center, and Wenatchee shall manage and adr design, development, and construction of the Regional C public/private partnership. Section 7. Financing. 7.1 Administrative Costs. The admin obligation of the District. of the Regional Center. Wenatchee i agreement or agreements with such enter in a form consistent with the parties hereto, and for the District to trict shall enter into an agreement or aance of the Regional Center. The with Wenatchee for the design, d Center which shall provide that he contractor or contractors for the enter in a form consistent with the .he parties hereto. Wenatchee shall :velopment, and construction of the inister the contracts relative to the nter, which development includes a ve costs of the Board will be the 3 5 P iDGMG08P 05WO6 2230276 ff llPage: 5 of 15 1111hill Nffi 1IIII 06/21/2866 84:83P Co,JOHHSON GAWROSER DREWELO INUM 46.99 Chelan WUH is 7.2 Financing. Financing of the development, construction, acquisition and operation of the Regional Center shall be as provided in this Agreement and by resolution of the District pursuant to the authority granted in chapter 35.57 RCW. It is agreed that the District will enter into an agreement or agreements with Wenatchee to provide for the custody, investment, and accounting of all funds of the District and assist in the administration of the financial affairs of the District. L' • 7.3 Taxes. The District shall impose all of the Sales Tax authorized under RCW 82.14.390(l) in support of the Regional Center and determined by the District to be a viable project that is likely to begin construction before February 1, 2007. The Sales Tax shall be applied to pay costs of such Regional Center, as set forth; in this Agreement, including without limitation costs of preliminary and due diligence activities: ! The District may impose admissions taxes, parking taxes, and other taxes and charges as authorized by chapter 35.57 RCW; provided, r LJ however, the District shall not impose any tax authorized'urlder chapter 35.57 RCW, other than the Sales Tax imposed pursuant to RCW 82.14.390 and admissions or parking tax, without prior vi vt—, approval of the legislative bodies of the parties hereto. 7.4 Audit. The funds of the District shall be subject to audit as otherwise provided by law for the auditing of public funds. Section 8. Limitation on Liability. All liabilities incurred by the District shall be ttiuf satisfied exclusively from the assets, credit, and properties of the District, and no creditor or a other person shall have any right of action against or recourse to the parties hereto, their assets, i credit, or services, on account of any debts, obligations,liabilities or acts or omissions of the District. Section 9. Property. The District shall have'J authority to acquire and dispose of property as provided in the Charter and chapter 35.57 RCW. In the event of termination of the District, all property held or acquired by the District shall become the property of Wenatchee. Section 10. Term. The term of this Agreement shall be perpetual except as may be otherwise provided herein. F Section 11. Review/Withdrawal. n: 11.1 Review. The parties hereby agree to review the effectiveness of this Agreement within 60 days of each tenth anniversary of the effective date of this Agreement upon the request of any Member. The purpose of any such review shall be to ensure that the District continues to effectively serve the public. The parties hereto further agree to make a full and good faith effort to participate in the review. If, after completion of each such review, the parties hereto unanimously agree that the public interest will be served by modifying certain terms and conditions of this Agreement or by termination of the District, such modifications or termination shall be made by the legislative authorities of each jurisdiction. Notwithstanding the foregoing, this Agreement shall not terminate so long as the District has any debt outstanding. 11.2 Withdrawal. Any one or more of the parties hereto may withdraw from the District upon each of the following conditions having been met: n W P:1DGiDGOBP 05/05106 2238276 IIiIN III I Till IHi Page: 6 of 15 86921/28 6 84 : 63P NNIIIIIIIII ININIIIN iillillll io"OH eAKURKMER ORE{ LO 1HR" 46.08 Chelan Co, WR • a. All outstanding bonds and other debt of the District has been paid in full; b. The party hereto desiring to withdraw has served a formal written notice upon each of other parties hereto of its intent to withdraw from the District; C. The Board convenes at a special meeting called by the President at the request of a party hereto desiring to withdraw to, in ;good faith, discuss the impact of the withdrawal on the operation of the District and the ability'gf the District to meet its obligations; and d. The legislative body of the; party hereto desiring to withdraw enacts a resolution or ordinance authorizing it to withdrawrom the District. 11.3 Effect of Withdrawal. Withdrawal;' of one or more of the parties hereto from the District shall not cause the District to terminate ei cept in the event that all of the parties hereto have withdrawn. The boundaries of the District shall be modified in the event of withdrawal of a city or county to reflect the boundaries oftle remaining municipalities. Section 12. Amendments• This Agreement nnay be amended at any time by the mutual written consent of each of the parties hereto. i with the Section 13. Filin . A copy of this AgreemenheshaanllCounty b ufiled t a and City Clerks of and Wenatchee and East Wenatchee, the County Clerks of C ... Y • the Chelan County Auditor; provided, however, that failure to file shall not affect -the validity of this Agreement. A copy of this Agreement shall also be fled with the Secretary of State. Section 14. Venue. The venue for any dispui% related to this Agreement shall be Chelan County, Washington. Section 15. General Provisions. This Agreement contains all of the agreements of the parties hereto with respect to any matter covered or mentnoned in this Agreement, and no prior agreement shall be effective for any purpose. Any provision of this Agreement which is declared invalid or illegal shall in no way affect or invalidate aq!other provision hereof and such other provisions shall remain in full force and effect. Secs Counpa terrts. This Agreement nay be executed in several counterparts, each of which when so executed shall be deemed to �e an original copy, and all of which on allarties hereto, notwithstanding that all together shall constitute one agreement binding parties shall not have signed the same counterpart. The el fective date of this agreement shall be the last date executed by any one of the parties to this agreement. Section 17. Insurance. The District shall maintain in full force and effect customary public Liability insurance in an amount sufficient to cover potential claims for bodily injury, death or disability, and for property damage, which mad Parise from or be related to projects and activities of the District, naming the Members as an additional insured, if such insurance ashall be d available. Such policies of insurance shall require a minimum of thirty (30) days City of Wenatchee prior to a change, lapse or cancelition of such policy. In the event the M 5 i;' P.=%DGOBP 05105M 2238276 �:. IPage 7 of 15 NMI W/21eIROW A4:63P il�lli li BRUKl 11IIIIII ,lpliµSON BpulQtooER ORENELO tNROns 48_86 Chelan Co. UR • District fails to pay the premiums for such insurance, the City of Wenatchee warrants that it will pay the premiums in order to maintain'the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, against the District in the event it pays insurance premiums on behalf of the District. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF WENAT E , WASHRINGTON B Dennis Johnson, ayor .7 CITY OF EAST WENATCHEE, WASHINGTON Steve Lacy, Mayor CITY OF ENTIAT, WASHINGTON RV Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON a George Valison, Mayor CITY OF ROCK ISLAND, WASHINGTON e Mayor CITY OF CHELAN, WASHINGTON By Jay Witherbee, Mayor TOWN OF WATERVILLE, WASHINGTON RV + Royal DeV aney, Mayor CHEIsAN COUNTY, WASHINGTON By Commissioner By F-: Commissioner By _. Coin, missioner DOUGLAS COUNTY, WASHINGTON By Commissioner By Commissioner By Commissioner 6 t , PADGWMP 05105= ' `� 2230276 If I II I OS?21l2 B6 64 = 83P f I IltlPage: 9 of 15 NII 1 II III II� IfI JoHNSM GM Ro6ER oRE1JEW INR&W 48. N Chelan Co, NR • District fails to pay the premiums for such insurance, the City of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, against the District in the event it pays insurance premiums on behalf of the District. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. • • CITY OF WENATCHEE, WASHINGTON LO-Z Dennis Johnson, Mayor CITY OF EAST WENATCHEE, WASHINGTON Steve Lacy, Mayor CITY OF ENTIAT, WASHINGTON ByJ954Nhe��-x-!e-"Z Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON George Valison, Mayor CITY OF ROCK ISLAND, WASHINGTON Mayor CITY OF CHELAN, WASHINGTON LIM Jay Witherbee, Mayor "TOWN OF WATERVILLE, WASHINGTON By Royal DeVaney, Mayor CHELjAN COUNTY, WASHINGTON By Commissioner By Commissioner By Coriimissioner DOWIL, AS COUNTY, WASHINGTON By COCCYmissioner By Commissioner BY F Commissioner r me wsp 0W5006 22302! 6 1111111 Hill 111111111111111ii Hill 111111111 milli 1111111 6Page; 10 of 1 6/21/2698 64563F JOHNSON GRUKROGER OREWELO INR" as.ee Chelan Co, WR District fails to pay the premiums for such insurance, the City of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, against the District in the event it pays insurance premiums on behalf of the District. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above_ CITY OF WENATCHEE, WASHINGTON CHELAN COUNTY, WASHINGTON By Dennis Johnson, Mayor CITY OF EAST WENATCHEE, WASHINGTON By Steve Lacy, Mayor CITY OF ENTIAT, WASHINGTON By Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON B George Valiso , Mayor CITY OF ROCK ISLAND, WASHINGTON By Mayor CITY OF CHELAN, WASHINGTON By Jay Witherbee, Mayor "TOWN OF WATERVILLE, WASHINGTON By Royal DeVaney, Mayor By _ Commissioner By Commissioner By Commissioner COUNTY, WASHINGTON By r Commissioner By Commissioner i` 6 ? . P'10G%DG08P 06MM IL1141 I��IP86//21/2006r84;83P JOHMSON 6AUKR06ER.A8 plan Co, WA • District fails to pay the premiums for such insurance, the Ciiy of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbtusement, at law or in equity, against the District in the event it pays insurance premiums on behal£of the District. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and • f►�l year first written above. CITY OF.WENATCH£E, WASHINGTON By Dennis Johnson, Mayor CITY OF EAST WENATCHEE, WASHINGTON By Steve Lacy, Mayor CITY OF ENTI_AT, WASHINGTON By Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON By George Valison. Mayor C LOF ROC I L WA INGTON B Mayor CITY OF CHELAN. WASHINGTON By Jay Witherbee, .vlayor TO%V'N OF WATERVILLE, WASHINGTON By Royal Devaney. Mayor CHELAN COUNTY, WASHINGTON By Commissioner By Commissioner By Commissioner DOUGLAS COUNTY, WASHINGTON By Cornzaissioner By Cornnissioner By 6 1 P WGO=P 0505" • • � rill 1111111 SSg21/20GS 645 11111111183P 111 � JOHNSOH ORUKROU R DREPELO I~9 46.69 Chelan Co, WR District fails to pay the premiums for such insurance, the City; of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coveiage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, gui against the District in the event it pays insurance premiums on behalf 'of the District. N WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF WENATCHEE, WASHINGTON CHELAN' COUNTY, WASHINGTON By Dennis Johnson, Mayor CITY OF EAST WENATCHEE, WASHINGTON By Steve Lacy, Mayor CITY OF ENTI.AT, WASHINGTON By Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON By George Valison. tvlayor CITY OF ROCK ISLAND, WASHINGTON Mayor CIT OF CHELA VA ]v' ON By i therbee, Mayor TOXt'N OF WAERVILLE, WASHINGTON By Royal Devaney. Mayor 0 By Commissioner By CorrirkLissioner By Commissioner DOUQ'� AS COUNTY, WASHINGTON By F` Commissioner By Corn'missioner By P.OGOWV 050M Page 2G of 4 : «i�i�ii II� I I 9ag21/13 o 615 �jjjjj as ,,� c caosEa ottruao tHnons 4s. Chelan Co, LIR iDistrict fails to pay the premiums for such insurance, the City of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, against the District in the event it pays insurance premiums on behalf of the District. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF WENATCHEE, WASHINGTON Dennis Johnson, Mayor CITY OF EAST WENATCHEE, WASHINGTON LIM Steve Lacy, Mayor CITY OF ENTIAT, WASHINGTON By Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON am George Valison, Mayor CITY OF ROCK ISLAND, WASHINGTON �: Mayor CITY OF CHELAN, WASHINGTON M. Jay Witherbee, Mayor TOtiVN-("'ATERVILLE, SHINGTON 5�01 4t-" Rg�ney, Mayor is CHELA!N COUNTY, WASHINGTON By Commissioner By Commissioner By Commissioner DOUGL AS COUNTY, WASHINGTON By Commissioner By Commissioner By Commissioner r f 6 j P 0GOGOBP 05M5106 • 2230276 ( III I (� III II 66g£ 15 21 /2a 604: 63P I II II I JOHNSON SMAMMOGER DREUELO INAGM 46.66 Chelan Co, A District fails to pay the premiums for such insurance, the City of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, against the District in the event it pays insurance premiums on behalf of the District. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF WENATCHEE, WASHINGTON CHELAN COUNTY, WASHINGTON By Dennis Johnson, Mayor ByCoinmissioner ��' G��ALSStO,ype_ CITY OF EAST WENATCHEE, By �S WASHINGTON Cotinmissioner s�NUAL 7 i By By O Steve Lacy, Mayor Commissioner - 4' CITY OF ENTIA.T, WASHINGTON DOUQLAS COUNTY, WASHINGTON By By Wendell Black, Mayor Co'�m mssioner F CITY OF CASHMERE, WASHINGTON By i Commissioner By By I George Valison, Mayor Commissioner CITY OF ROCK ISLAND, WASHINGTON } , E: BY s; Mayor CITY OF CHELAN, WASHINGTON By Jay Witherbee, Mayor f TOWN OF WATERVILLE, WASHINGTON. By Royal Devaney, Mayor t e 6 € P:IDGIDGMP OSM06 F e i - 1 F ' I'll! I IIIII Illll �IifN III !lull ili IIII Page: 8 6 264: 63P I llllli lull llll i 15 JOHNSON ORUKROGER DREWELO INRGrW 46.66 Chelan Co, WR • District fails to pay the premiums for such insurance, the City of Wenatchee warrants that it will pay the premiums in order to maintain the insurance coverage required herein. The City of Wenatchee reserves all of its rights and remedies for reimbursement, at law or in equity, against the District in the event it pays insurance premiums on behalf of the District. • 0 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF WENATCHEE, WASHINGTON By Dennis Johnson, Mayor CITY OF EAST WENATCHEE, WASHINGTON By Steve Lacy, Mayor CITY OF ENTIAT, WASHINGTON By Wendell Black, Mayor CITY OF CASHMERE, WASHINGTON By George Valison, Mayor CITY OF ROCK ISLAND, WASHINGTON By Mayor CITY OF CHELAN, WASHINGTON By Jay Witherbee, Mayor TOWN OF WATERVILLE, WASHINGTON By Royal DeVaney, Mayor CHELAN COUNTY, WASHINGTON ay Commissioner By '; Conmissioner By Commissioner _191810 By�( i By C By C i COUNTY, WASHINGTON 6 € P:IOG\DGOBP ft i :i 05/08/06 _---P�(iLect-Backgrovnd:—Ire- 2004-.xhe4i"f Wenatshw-a&pt€d-th&-W tshee -- ---- )Naterfront Sub Area plan with! the intention of revitalizing the city's waterfront and providing a new economic development opportunity ity for the city and the region. There "7Qre several available properties which began to attract private attention: be extended to allow the region to recapture .033� o of the sales tax the area was sending to the state in; order to fund the facility through the creation of the I�iblic Facilities District-, The legislation also allowed for the tax of admissions and parking, which provlde adclit>q reven,e,for,the project.; In October 2005, a press conference was held in Wenatchee to unveil the projects that could happen on the waterfront, with the intention of determining t public support. The support for the project was overwhelming. In November and December, area elected leaders and organizations were brought together to determine their ' support for the project and the development of the Public Facilities District. Again,- support was enthusiastic and our Legislators, with letters of support in hand at the end of December, dropped legislation early in the 2006 Legislative Session. It is important to note,.that in preparation for the "drop" of the legislation, the Department of Revenue needed to draft a fiscal note. This fiscal note identified the project, provided an assessment of the market information and numbers provided by Global Entertaimnent and assessed what the cost would be to the state. The reviewer from the Department of Revenue actually noted that Global's numbers seemed to be conservative for what the region could support in terms of ticket prices, attendance, etc. )4 Our t,egi.slators were; successful in passing Ijai`rossed Substitute Senate Bill 6230 1 S B 6230") during the last Legislative Session,'which amends RCW 82.1.4.390 to authori public facilities districts "created before July 1, 2006, tinder chapter 35.57 RCW in a county or counties in which there are no ether public facilities districts on the effect- e'date of: this s�tiz i 7andln which the total population in the public facilities distriet is greater than ninety thousand that commences construction of a new regional center of a value of $I0,000,004 or nl� beft�re February 1, 2007" to tin se a sales,�nd use.tU, under c to P ^...F r�._ .. �§2, l4 RCW,A To take advantage of the authority granted in this bill, the public facilities district ("PFD') must be created under chapter 35.57 RCW fthe "City PFD Statute") prior to July 1, 2006. Under the City PFD Statute, the PFD may be created by individual cities, jointly by a number of contiguous cities or by a combination of contiguous cities and contiguous counties. The municipalities creating the PFD must enter into an interlocal agreement under chapter 39.34 RCW, the Interlocal Cooperation Act, for the creation and operation of the PFD. The boundaries of the PFD will be coextensive with the boundaries of the. counties and will include the unincorporated areas of the counties and the incorporated areas of the cities that are members of the PFD. Areas of incorporated cities that are not members of the PFD will not be included. RCW 35.57.010(1), (2). Public Facilties District overview: Please see attached overview. Public Facilities District formation: interlocal agreements have been drafted that would adopt. by-laws and a charter for the Greater Wenatchee Regional Events Center Public Facilities District through either a Resolution or Ordinance. The draft documents were provided by Nancy Neraas of Preston Gates and Ellis. Preston Gates and Ellis has worked on the formation. of eighteen of the existing twenty-one Public Facilities Districts in the state of Washington. 0 PFD requirements are listed above in the description of Engrossed Substitute Senate Bill 6230 ("ESSB 6230"). Future impact: With a Public Facilities District formed, there are future possibilities for other complimentary development. A regional mechanism will be in place that will allow for the acquisition, development and operation of projects of a regional significance. Legislation may need to change to allow deviation from the $10 million project, however, to make it fully effective for another project. 71 • •NEW ISSUE BOOK -ENTRY ONLY OFFICIAL STATEMENT DATED NOVEMBER 18, 2008 Sales Tax Notes Ratings: S&P: SP-1+ Revenue and Special Tax Notes Ratings: S&P: SP-1+ (See "RATINGS" herein) In the opinion of K&L Preston Gates Ellis LLP, Note Counsel, assuming compliance with certain covenants of the District, interest on the Sales Tax Notes and Senes A Revenue and Special Tax Notes is excludable from gross income for federal income tax purposes under existing low. Interest on the Sales Tax Notes and Series A Revenue and Special Tax Notes is not on item of tax preference for purposes of either individual or corporate alternative minimum tax. Imerest on the Sales Tax Notes and Series A Revenue and Special Tax Notes maybe indirectly subject to corporate alternative minimum tax and certain other taxes imposed on certain corporations. See "TAX MATTERS —SALES TAX NOTES AND THE SERIESA REVENUE AND SPECIAL TAX NOTES" herein fora discussion ofthe opinion of Nate Counsel. The District does not Intend for the interest on the Series B Revenue and Special Tax Notes to be excluded from gross income of the owners of Senes B Revenue and Special Tax Notes for federal income tax purposes and will riot take any action to assure such exclusion. K&L Preston Gates Ellis LLP, Note Counsel, expresses no opinion regarding the tax-exempt status of the Series B Revenue andSpecial Tax Notes. See "CERTAIN INCOME TAX CONSEQI/ENCE"ERIES B REVENUE AND SPECIAL TAX NOTES " $41,770,000 GREATER WENATCHEE REGIONAL EVENTS CENTER PUBLIC FACILITIES DISTRICT $5,135,000 $31,160,000 Limited Sales Tax Bond Anticipation Notes, Series 2008 Revenue and Special Tax Bond Anticipation Notes, Series 2008A $5,475,000 Revenue and Special Tax Bond Anticipation Notes, Series 2008B (Taxable) DATED: Date of Delivery DUE: December 1, 2011 The Greater Wenatchee Regional Events Center Public Facilities District (the "District") is issuing its Limited Sales Tax Bond Anticipation Notes, Series 2008 (the "Sales Tax Notes"), Revenue and Special Tax Bond Anticipation Notes, Series 2008A (the "Series A Revenue and Special Tax Notes"), and Revenue and Special Tax Bond Anticipation Notes, Series 2008B (Taxable) (the "Series B Revenue and Special Tax Notes," and together with the Series A Revenue and Special Tax Notes, the "Revenue and Special Tax Notes"). The Sales Tax Notes and the Revenue and Special Tax Notes are referred to herein as the "Notes." The Notes will be issued as ntry s fully registered Notes under abook-eystenT,'ifl7itslly registe-- red in the named'Cede-&-Co-(fhe"Registered OWfteFT as nominee for The Depository Trust Company, New York, New York ("DTC"), which will act as securities depository for the Notes. Individual purchases of the Notes will be made in book -entry form in the principal amount of $5,000 or any integral multiple thereof within a single series and maturity. Purchasers of the Notes (the "Beneficial Owners") will not receive certificates representing their beneficial ownership interests in the Notes. See Appendix E—"BOOK-ENTRY ONLY SYSTEM." The Notes are being issued by the District for the purpose of financing the option to purchase the Greater Wenatchee Regional Events Center located in Wenatchee, Washington (the "Regional " under the terms of the Amended and Restated Lease with Pumhase Option AjUement among the District, the City of Wenatc ee Washington the ___DL17and Wenatchee Events Center, LLC capitaizing it reerest on the Notes fdt approximately six months, and paying costs of issuance for the Notes. See. SeeE AND APPLICATION OF NOTE PROCEEDS." • Principal of the Notes is payable on December 1, 2011. Interest on the Notes is payable on June 1 and December 1, commencing June 1, 2009, until maturity or prepayment, by the District's Note registrar and paying agent, initially the fiscal agency of the State of Washington (the "State"), currently The Bank of New York Mellon in New York, New York (the "Note Registrar"). As long as DTC or its nominee is the Registered Owner of the Notes, such payments will be made by the Note Registrar to DTC, which is obligated to remit such principal and interest to the DTC Participants, which in turn are obligated to remit such payments to the Beneficial Owners of the Notes as described in Appendix E—"BOOK-ENTRY ONLY SYSTEM." The Notes are subject to prepayment prior to maturity. See "THE NOTES —Redemption Provisions." The Notes are general obligations of the District within the meaning of Revised Code of Washington ("RCW") 35.57.030, and are within the amount that the District is authorized to issue without a vote of the people. The District has authorized the issuance of sales tax bonds in the amount sufficient, together with other available funds, to repay the Sales Tax Notes. The Sales Tax Notes are payable from and secured by a pledge of Sales Tax Revenu (consisting of proceeds of the District sales and use taxes). See "SECURITY AND S TA S." The District has authorized the issuance of revenue and special tax bonds in the amount sufficient, together with other available funds, to repay the Revenue and Special Tax Notes. The Revenue and Special Tax Notes are payable from and secured by a pledge of earnings, revenue and money received by the District from its ownership and/or operation of the Regional Center (the "Regional Center Revenue") and a pledge of District Tax Revenue (consisting of proceeds of the District admissions tax and other taxes, if any, imposed by the District for such purpose). If necessary, interest on the Revenue and Special Tax Notes is also payable from Sales Tax Revenue and from the proceeds of loans received by the District from the City under the terms of the Contingent Loan Agreement between the District and thethe Cionfingent Loan Agreement") to the extent such funds are�ble_. Under the Contingent Loan greement, the htyTias irrevocably pledged its full faith, credit and resources for the making of Toans to the District as required in order for the District to meet the interest payme or a evenue an pec o es, if ann t at egio'nal Cdnter Revenfe T iggutct-Tax-Revenue d"nd-Sates-Tax Revenue are insufficient lor that purpose. —See "SECURITY AND SOj5iCVS i7F ENT MR_ThE REVENUE AND_MCIAL'1AXNOTE . The CoetiiagenT l�in-n greemeo oes--nof—secure payment of principal of and interest on the Sales Tax Notes or the principal of the Revenue and Special Tax Notes. See "SECURITY AND SOURCES OF PAYMENT FOR THE SALES TAX NOTES," The Notes are not an obligation of the State, the City, or any other municipal corporation, subdivision or agency of the State other than the District. Principal of and interest on the Sales Tax Notes and the Revenue and Special Tax Notes are payable only from the sources described in the Sales Tax Note Resolution and the Revenue and Special Tax Note Resolution, respectively. The District has limited taxing powers, and is not authorized to levy, Impose or collect any ad valorem property taxes on real or personal property. See "SECURITY AND SOURCES OF PAYMENT FOR THE SALES TAX NOTES" and "SECURITY AND SOURCES OF PAYMENT FOR THE REVENUE AND SPECIAL TAX NOTES" The Notes are offered when, as and if issued, subject to the approving legal opinions of K&L Preston Gates Ellis LLP, Seattle, Washington, Note Counsel. It is expected that the Notes in book -entry form will be ready for delivery to the Note Registrar on behalf of DTC by Fast Automated Securities Transfer on or about November 25, 2008. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision 0 PiperJaff ray 2f • ® FOSTER PEPPER,,. Memorandum To: Dennis Johnson, Mayor City of Wenatchee From: Hugh Spitzer i w Date: May 4, 2011 Subject: Contingent Loan Agreement with Greater Wenatchee Regional Events Center Public Facilities District This memorandum summarizes the reasoning behind our conclusion that the City of Wenatehee's (the "City's") commitments in a proposed Contingent Loan Agreement (the "Proposed CLA") • between the City and the Greater Wenatchee Regional Events Center Public Facilities District (the "District') do not constitute "debt" for purposes of calculating the City's debt capacity under Article Vnl, Section 6, of the Washington State Constitution and under RCW 39.36.020. Our firm is serving as bond counsel to the District in connection with the District's issuance of the bonds described below, consistent with a waiver and approval from the City, for whom we serve as bond counsel on other financings. The. City has engaged separate counsel'in connection with the District's financing. However, we are able to confirm that when, in the future, we serve as bond counsel to the City in connection with the City's general obligation bond issues, we will, in calculating the City's general obligation debt capacity, exclude the City's obligations under the proposed contingent loan agreement described below (the "Proposed CLA"). A copy of the Proposed CLA accompanies this memorandum, and we assume for purposes of this memorandum that the Proposed CLA would in material respects be similar to the attached draft. The enclosed draft. of the Proposed CLA has not been reviewed by the District's Board, and we recognize that both the District and the City will likely suggest adjustments to that document before it is made final. The City is a code city subject to Title 35A RCW and various other statutes relating to Washington cities. The District is a public facilities district, a separate municipal corporation organized under chapter 35.57 RCW. The District was formed by the City and eight other cities and counties, each of which adopted a formation ordinance or resolution with respect to the District. Each of those ordinances and resolutions (including the City's Ordinance No. 2006-09) expressly provide: "All liabilities incurred by the District shall be satisfied exclusively from the assets, credit, and properties of the District, and m-M&WAW►Nc?06.,14 —WWmlmraw mms=3m.SSATrEZ ►ASENGTONUMLM%—JUS MLaw 0 SEAT= WAXWC N SPOKME wASKNGA rr Memorandum May 4, 2011 Page 2 no creditor or other person shall have any right of action against or recourse to the (city)[county], its assets, credit, or services, on account of any debts, obligations, liabilities or acts or omissions of the District." The Proposed CLA has language that recites that principle, i.e., that the Bonds are the obligations solely of the District, are not obligations of the City, and the owners of the Bonds have no recourse to the City with respect to the payment of principal and interest on the Bonds. The City and the District are parties to an "Interlocal Agreement for the Greater Wenatchee Regional Events Center Project" dated as of September 6, 2006, as amended by a First Amendment dated May 7, 2007 (collectively, the Existing Interlocal Agreement), The Existing Interlocal Agreement, which was entered into pursuant to the Interlocal Cooperation Act, provides for the cooperative development, construction, operation and maintenance of the Regional Center. For purposes of this memorandum, it is assumed that the Existing Interlocal Agreement would be adjusted so that its language concerning the nature of the City's obligations to the District are consistent with the terms of the description of those obligations in the Proposed CLA. The City and the District are also parties to a Contingent Loan Agreement dated as of November 13, 2008, that was executed in connection with the issuance of the District's Revenue and Special Tax Bond Anticipation Notes, 2008 (the "Notes"). Neither that agreement, nor the Notes, are the subject of this memorandum. • The Proposed CLA would be executed by the City and the District in connection with Revenue and Special Tax Bonds, Series 2011A and Series 201 IB (Taxable)(collectively, the "Bonds"). The proceeds of the Bonds are expected to retire the Notes, which were issued to finance the construction of a multipurpose regional special events center (the "Regional Center'l. Under the Proposed CLA, the City would commit to lending money to the District if and to the extent that amounts on deposit in specified -funds were insufficient for the District to make required debt service payments. It is assumed that, consistent with Section 2.02(g) of the Proposed CLA, the District will pledge to apply the loan proceeds that it receives to the payment of the Bonds, if and as that becomes necessary to provide for debt service:on those District obligations. Each City loan to the District would trigger a District obligation to repay that loan, with interest, all as described in Section 2.02 of the Proposed CLA. At the time of each District borrowing from the City, the District will incur debt in the amount of that borrowing. The Proposed CLA also provides that if the District were to borrow an amount from the City that caused the District to reach its non -voted debt limit, each additional City payment to the District to assist the District with its debt service requirements would be treated as a City purchase of an equity interest in the Regional Center, Under Section 2.01(f) of the Proposed CLA, the City's obligation to make loans to the District is "absolute and unconditional," and the City has pledged its full faith, credit and resources to making those loans. However, in the Proposed CLA, the District and the City recognize and acknowledge that the Bonds are obligations only of the District, are not obligations of the City, and the owners.of those Bonds have no recourse to the City, its assets or credit on account of those obligations. The City's obligation to make loans to the District at a future time under the circumstances specified in the Proposed CLA is an obligation coadggent upon the occurrence of those events. Our understanding is that the City and the District curtcatly anticipate that City loans to the District will 0 11176"" L' Memorandum May 4, 2011 Page 3 occur, particularly in the first years after issuance of the Bonds, but that the specific number of borrowings by the District, and the amounts, are unknown at this time. ANALYSIS The Interlocal Cooperation Act (Chapter 39.34 RCW) authorizes public agencies, such as the City and the District, to jointly exercise any powers, privileges or authority that each of them may independently exercise. RCW 39.34.030. Under that statute, the City and the District are authorized to enter into one or more agreements jointly to pursue a project Those agreements are expected to include, among other things, the "manner of financing the joint or cooperative undertaking." RCW 39.34.030(3xd). Local governments routinely enter into interlocaL agreements under which they share the costs of joint projects. Participating governments typically contribute various combinations of property, staff, existing facilities and/or money. Pursuant to Interlocal Cooperation Act arrangements, it is common for one cooperating government to commit financial assistance to another government in order to strengthen that second entity's borrowing capacity in connection with the joint undertaking. The District is authorized to finance, constrict and operate regional centers under RCW 35.57.020. • Cities are authorized to finance, construct and operate facilities such as this particular Regional Center under Chapter 35.59 RCW, RCW 35.21.020, Chapter 67.20 RCW, Chapter 67.28 RCW, Chapter 67.30 RCW, and various other statutes. Both the District and the City have ample separate statutory authority to carry out the financing, construction and operation of the Regional Center. Accordingly, they are authorized under Chapter 39.34 RCW to finance, construct and operate this specific Regional Center on a joint basis. Pursuant to the Existing Interlocal Agreement (as it may be further amended consistent with the Proposed CLA), the City and the District will execute the Proposed CLA. The Proposed CLA will provide the District with assurance that it will be able to borrow from the City, if and as necessary, to provide for amounts need to provide for timely debt service on the Bonds. The City's obligation will be analogous to that of a bank that enters into a binding obligation to make a loan to a customer in the future and under specified conditions. While such a bank's obligations are binding and may be enforced by its customer, the bank does not necessarily have any relationship with businesses or other creditors with whom that customer might contract. The customer's debts to its creditors are not debts of the bank. Further, it should be noted that the City routinely enters into obligations to make payments over more than one year, such as construction contracts and employment contracts; while those obligations may be substantial, and may be reflected in the City's financial statements, they are not treated as "debts" of the City. As noted above, the Proposed CLA provides that the Bonds are solely the District's obligations, and are not obligations of the City. While the District will be entitled to enforce its rights under the Proposed CLA, owners of the Bonds expressly are without any rights against the City. 0 si OM2 • Memorandum May 4, 2011 Page 4 in Washington State, "debt" that is subject to constitutional and statutory debt capacity limits, is defined as borrowed money payable from taxes.I Among the cases that illustrate this definition are: • Winston Y. Spokane, 12 Wash. 524, 412 P. 888 (1895) — Established that bonds payable solely from non -tax revenues deposited in a, special fiord do not constitute "debt" subject to debt capacity limits. This was the first reported case in the nation that established the "special fund doctrine" that permitted non -tax revenue bonds. • Comfort v. Tacoma, 142 Wash. 249, 252, P. 929 (1927) — Ruled that the fact that a local improvement guaranty fund must be replenished from tax special tax levy did not make local improvement (revenue) bonds "debt" because of the contingent nature of the recourse to taxes. • State ex rel. Wittler v. Yelle, 65 Wn.2d 660, 399 P.2d 319 (1965) — Held that the State's substantial obligation to provide for payment of teacher pensions, including payments from the tax -backed general fund, did not constitute "debt' subject to the State's debt limit. The opinion stated: "The court has many times said what Article 8 means by the word `debt.' We • think it means borrowed money, it denotes an obligation created by the loan of money, usually evidenced by bonds but possibly created by the issuance ofpaper bearing a different label .... We know of no cases decided by us since statehood -in which we have held Art. 8, Secs. 1, 2 and 3 applicable to other than borrowed money." 65 Wn.2d at 668, 670. • Department of Ecology v. State Finance Committee, 116 Wn.2d 246, $04 P.2d 1241 (1991) — Deternined that the State's obligation to make payments under a lease -purchase agreement that did not pledge the State's taxing power, which provided that the lease payments were subject to legislative appropriation, and which allowed the State to give up the building upon termination of payments, did not constitute "debt" of the State. In the instance of the City's obligations under the Proposed CLA, the City has absolutely and unconditionally committed itself to make loans to the District. But under the terms of the Proposed CLA, the City commits to be a lender, not a borrower. The borrower is the District, a separate municipal corporation. Further, the City does not issue the Bonds. The Bond& will state'that they are to be exclusively satisfied from the assets, credit, and properties of the District, and that no Bond owner will have any right of action against or recourse to the City, its assets, credit, or services, on account of any debts of the District. The District may promise to owners of tine Bonds that it will apply amounts borrowed from the City to Bond debt service, but that is the District's obligation rather than the City's obligation. When and if the District draws upon the City's loan commitment, the City might make that loan from available cash, or the City right at that furore time borrow r The only temporary inconsistency in Washington's basic concept of "debt" consisting of borrowed money payable from taxes, occurred between 1949 and 1963, when for 14 years the Washington Supreme Court allowed bonds payable from excise taxes to be treated as outside the constitutional debt limit on general obligation bonds. This approach, first permitted in Gruen v State Tax Commission, 35 Wu.2d 1, 211 P.2d 651(1949), was overwauAby State ex rel. Finance Comm. V. Martin, 62 Wn.2d 645, 384 P.2d 833 (1963). • Memorandum May 4, 2011 Page 5 money to fulfill its obligation. If the City issues general obligation (i.e., tax -backed) bonds to provide those funds, the City then will incur debt and the City's debt capacity will be correspondingly reduced. It should be noted that for accounting purposes, it may be appropriate for the City to treat all or a portion of its obligation to the District as a "contingent liability" in its financial statements. Further, bond rating agencies likely will take that contingent obligation of the City into account in determining its general obligation bond ratings. But those are accounting and financial matters, not legal matters, and this memorandum does not address either accounting or financial practices. In Washington State, the Supreme Court clearly and repeatedly has held that the kind of "debt" that affects a borrowing government's debt capacity is that government's borrowed money payable from taxes: not some other government's borrowed money; not the obligation of some other government to be a lender; not a contractual obligation such as teacher pensions, which may be massive in their financial impact but which do not constitute "debt" for debt capacity purposes; and not an imerlocal agreement, such as the Proposed CLA, that commits one government to make a loan to another at some point in the future, under specified circumstances. • Accordingly, we conclude that the City's obligation to make future Loans to the District under the terms of the Proposed CLA will not create City "debt" for purposes of calculating debt capacity. We also conclude that the Interlocal Cooperation Act (Chap. 39.34 RCW), together with the City's and the District's respective powers under Chapter 67.28 RCW, Chapter 67.30 RCW, Chapter 67.20 RCW, Chapter 35.59 RCW, RCW 35.21.020, Chapter 35.57 RCW, and various other statutes, provide the basis for both the City and the District lawfully to enter into an agreement such as the proposed CLA. We hope that you will find this discussion helpful. Please do not hesitate to contact us if we can provide you with any additional thoughts on this topic. Enclosure cc: Board of Directors, Greater Wenatchee Public Facilities District Allison Williams Mark Calhoun Steve Smith Roy Koegen Peter Fraley Nancy Neraas 0 11UG 2