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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 10/19/1981 Kent, Washington October 19 , 1981 Regular meeting of the Kent City Council was called to order at 8: 00 o'clock p.m. by Mayor Hogan. Present: Councilpersons Bailey, Hamilton, B. Johnson, J. Johnson, Masters, McCaughan and Mooney, City Administrator Cushing, City Attorney Mirk, Planning Director Harris, Public Works Director Wickstrom and Finance Director McCarthy. Also present: Fire Chief Angelo, Parks Director Wilson, Police Captain Byerly, Administrative Assistant Webby and URS representative Abed. Approximately 25 people were in attedance at the meeting. PROCLAMATION United States Day. A proclamation was read by Mayor Hogan declaring Saturday, October 24 , 1981 as United States Day in the City of Kent. CONSENT B. JOHNSON MOVED to approve Consent Calendar Items CALENDAR A through N with the exception of Item C, Environmental Excise Tax, which was removed at the request of Council- person Hamilton, and Item D, the Animal Control Ordi- nance which was removed at the request of City Admini- strator Cushing. McCaughan seconded. Motion carried. MINUTES (CONSENT CALENDAR ITEM 5A) Approval of Minutes. APPROVAL of the minutes of the regular Council meeting of October 5 , 1981. HEALTH & (CONSENT CALENDAR ITEM 5F) SANITATION LID 285 - West Hill Island Sanitary Sewers. SETTING of a public hearing date of November 16, 1981 to con- firm the Final Assessment Roll for LID 285, construc- tion of sanitary sewers in the West Hill Island area. LID 299 - Sanitary Sewers (S .E. Corner of James Street and West Valley Highway) . This date has been set for the public hearing on the confirmation of the Final Assessment Roll for LID 299 . The Final Assessment Roll totals $85, 935. 72 . The public hearing was opened by Mayor Hogan. The Clerk noted receipt of a letter from H. N. Whiteley stating that he lacked sufficient information on the project. B. JOHNSON MOVED that the letter be accepted for the record. Mooney seconded. It was determined that Mr. Whitely was asking for an extension of time for the hearing since he was out of the country at this time. In response to Mayor Hogan' s questions, Mirk determined that although it was not a legal protest, the Council normally gives people an opportunity to discuss such matters with them at a workshop session. - 1 - October 1981 HEALTH & Motion carried. In response to Masters ' SANITATION question, the City Clerk noted that the notice on the final hearing was sent to Mr. Whitely's known address in Hong Kong and that Merrill Vesper of the Engineering Department had responded to Mr. Whitely' s objections by a letter dated October 15, 1981. Vesper's letter was read by the Clerk and MASTERS MOVED that the letter be filed as part of the record, Mooney seconded. fiction carried. A gentleman from the audience responded on behalf of Mr. Whitely, noting that he would be returning to this area prior to October 30, 1981. Mooney noted that the project was very successful and that since there was a letter filed, Mr. Whitely should be afforded the opportunity to discuss the matter with the Council. MOONEY MOVED to continue the public hearing to November 2, 1981, Masters seconded. Motion carried. Metro 201 Plan. It was noted that Metro' s 201 Plan to discharge effluent at Seahurst Park was discussed at the October 12 workshop. Mayor Hogan noted that at the last Metro Council meeting a group presented an optional method for the Metro staff to consider before a final decision is made on the proposed outfall site. The Water Quality Committee will con- sider the proposal on October 22 and the Metro staff has been asked to make a presentation at Kent' s work- shop meeting of October 26. She suggested that the Council might hold action until both proposals are presented on October 26. Council action could be taken on November 2 and still bb in time to make Kents position clear before Metro takes action. The Council concurred with holding action to the November 2 meeting. WATER (CONSENT CALENDAR ITEM 5G) LID 302 - Rose Avenue Water Main--79th Avenue S. (S. 262nd Street to S. 266th Street) . SETTING of a public hearing date of November 16, 1981 to confirm the Final Assessment Roll for LID 302, construction of water main on 79th Avenue S. from S. 262nd Street to S. 266th Street. (CONSENT CALENDAR ITEM 5M) 1981 Water Supply. APPROVAL of the request of the Public Works Director that $7, 000 be transferred from the clearing fund into the 1981 Water Supply project 2 - October 19 , 1981 WATER fund. The Engineering Department requested the con- tractor to drill deeper than originally proposed on one of the wells included in the project contract and the additional work requested caused the project contract to exceed the budget by about $6,000. The Public Works Committee has reviewed the request and recommends approval of the transfer of funds. (CONSENT CALENDAR ITEM 5J) East Hill Well. APPROVAL of the request of the Public Works Director that $1, 000 be transferred from the clearing fund to the East Hill Well Project fund. The Engineering Department requested the contractor to install a manhole at S. E. 248th and 104th S.E. for maintenance purposes and the change order submitted by the contractor for this additional work causes the project to exceed the budget by $600. The Public Works Committee has reviewed the request and recommends approval. STREETS (CONSENT CALENDAR ITEM 5K) Central Avenue Improvements. APPROVAL of the request of the Public Works Director to transfer $1, 000 from the Maple Street project fund into a fund to cover the expenses incurred for title reports for the Central Avenue improvements project. These title reports were required for staff to contact the pro- perty owners involved to discuss donations of right- of-way. The Public Works Committee has recommended approval of the request. DRAINAGE (CONSENT CALENDAR ITEM 5H) SCS Project. APPROVAL of the request of the Public Works Director that $3 , 000 be transferred from the Maple Street project fund to cover the expenses be- ing incurred for the SCS project. Anticipated ex- penses would be for title reports and preparing maps. The Public Works Committee recommends approval of the request. PERSONNEL (CONSENT CALENDAR ITEM 5I) Engineering Department Project Management Study. APPROVAL of the request of the Public Works Director to proceed with a project management training session for the Engineering Department staff. In preparing their 1981 year-end expenditures, $5, 000 was included for the training which would be conducted by Matrix 3 - October 19, 1981 PERSONNEL Management Group for the engineering staff and would result in documentation of project management pro- cedures. The Public Works Committee concurs with the request. ENVIRONMENTAL (CONSENT CALENDAR ITEM 5C) EXCISE REMOVED AT THE REQUEST OF COUNCILPERSON HAMILTON TAX Environmental Excise Tax. A request has been made to direct staff to develop guidelines for exempting recreational buildings from the Environmental Excise Tax as was discussed at the October 12, 1981 workshop. Hamilton stated that before this was sent to staff he would like to reiterate that his understanding of this was that this proposal is intended to be a waiver of the environmental tax for certain developers who build recreation buildings granted on a case by case basis by Council and will not be perceived as a tax credit to be applied against other environmental taxes due. HAMILTON MOVED to approve Consent Calendar Item C with his additional language. J. Johnson seconded. Motion carried. ARTS (CONSENT CALENDAR ITEM 5N) COMMISSION Reappointments. APPROVAL of the reappointment of the following Arts Commission members: Carolyn Wiley, Laurel Whitehurst, June Mercer and Susan Dailey. FEDERAL Federal Shared Revenue - Proposed Use. Notice of a REVENUE public hearing has been given for this date for input SHARING and suggestions from the public concerning the pro- posed use of Federal Revenue Sharing Funds. The final Federal Revenue Sharing hearing will be held in December in conjunction with the public hearing on the 1982 budget. The funds expected for 1982 amount to $493, 892. The public hearing was opened by the Mayor. Cushing noted that the purpose of the hearing was to take public input on the use of anticipated Federal Revenue Sharing funds. He noted that the Council had been provided with a list showing how the funds were allocated during 1981 and also pointed out that the 1982 allocation had been reduced by approximately 16%, 12% of which was due to Federal cutbacks called for by the Reagan Administration, and that the total amount to be received would be $493, 382. Mayor Hogan noted receipt of a letter from King County Executive Dunlap in which he noted that he would not recommend 4 - a October 19, 1981 FEDERAL Housing & Community Development Joint Project fund- REVENUE ing for the Comprehensive Plan for Mill Creek. She SHARING suggested that this could be considered at a workshop as a possible project to be funded. Cushing noted that it could be placed on the list of recommended uses for FRS and that the Council decision would be made at the time of the final hearing. No corres- pondence was received and there were no further com- ments . McCAUGHAN MOVED that the hearing be closed, B. Johnson seconded. Motion carried. ANIMAL (CONSENT CALENDAR ITEM 5D) CONTROL REMOVED AT THE REQUEST OF CITY ADMINISTRATOR CUSHING ORDINANCE Animal Control Ordinance. Mike Webby noted that a copy of the proposed Animal Control Ordinance had been furnished to the Council in accordance with discussions held at the workshop of October 12, 1981. Webby also noted that he had talked to Mr. Girard of King County Animal Control. Will Wolfert of the Planning Department had prepared a recommendation for the following changes: "Redemption Procedures" _ 1. Change "fifteen dollars" to "an amount as esta- blished by the Animal Control Division, Depart- ment of General Services, King County" . 2. Change "five dollars" to "an amount as established by the Animal Control Division, Department of General Services, King County" . 3 . Change "thirty dollars" to "an amount as esta- blished by the Animal Control Division, Depart- ment of General Services, King County" . and that the following definitions be added to the ordinance for clarification: ADD: "Lawful training" means to be engaged in train- ing on the permises of the owner or on the land of another person by permission, or on public land that is set aside for training or is open for hunting or trapping; provided, that the dog is accompanied afield by the owner or trainer. A "no-shooting" area shall not be interpreted to mean a "no-training" area. 5 - October 19 , 1981 ANIMAL ADD: "Restraint" means an animal is considered to CONTROL be under restraint if it is maintained and re- ORDINANCE mains within the property limits of its owner or keeper. ADD: "Leash" shall include a cord, thong or chain not more than eight (8) feet in length by which an animal is controlled by the person accompanying it. CHANGE: "Running at large" means to be off the premises of the owner or on the premises of another with- out written permission of the owner thereof; not on a leash and not under the control of the owner or competent person authorized by the owner; NOT UNDER LAWFUL TRAINING. Webby noted that the additions were consistent with discussions held at the workshop with regard to fees and would, in effect, adopt the King County fee schedule. Referring to the definitions, Webby re- commended that the definitions referring to "Restraint" and "Leash" should be added since they both would improve and clarify the ordinance. Referring to the proposed change for the definition "running at large" Webby noted that this was the same as in the proposed ordinance with the exception of the addition of four words "not under lawful training" . The addi- tional words relate to the proposed definition for "lawful training" . Masters and B. Johnson questioned whether these two proposed changes would cause enforce- ment problems and Webby agreed that this could happen. He suggested that the proposed ordinance should be amended or modified so that the County can work with it inside the City. He suggested that the proposed ordinance be modified to include the proposed changes listed above under "Redemption Procedures" and with the addition of the two definitions of "Restraint" and "Leash" . MASTERS MOVED that Ordinance No. 2316 be adopted with the modifications proposed by Webby. B. Johnson seconded. Motion carried. BUDGET Tax Levy Ordinance. BAILEY MOVED to adopt Ordinance No. 2317 setting the tax levy for 1982. Mooney sseeco—n ded. Finance Director McCarthy explained the figures set forth in the ordinance. Motion carried. 6 - October 1981 BUDGET Cushing noted that it was expected that the 1982 budget would be delivered to the Council shortly and that the first review meeting by the Council would be held on Thursday, October 29, at 3: 30 p.m. at the Commons. At that time a specific schedule for reviewing the budget would be set up. McCaughan suggested that all candidates for Council positions be invited to join in the budget review meetings, as well as Ford Kiene of the Chamber of Commerce. AWC Cushing reported that the AWC would hold a legisla- tive conference in Olympia on November 12. He encouraged as many councilpersons as could attend the meeting to do so because it was anticipated that AWC would be iobbyingfor adjustments in the sales tax, which would involve the development community which would like to use the sales tax as a trade-off for the environmental excise tax. He pointed out that this could affect the Kent area in many ways. Cushing noted that he would attend the November 11 meeting. POLICE Jail Facilities. Mayor Hogan reported that the Mayors of Renton and Tuk3dila and representatives from the Police Departments of Auburn and Normandy Park had heard a presentation by Bob Lubowicki about Kent' s $2, 000, 000 grant for jail facilities. At that time discussion was held about the possibility of a regional jail facility. These representatives were going back to their respective Councils tb determine their feelings about this type of arrange- ment. Mr. Lubowicki will make a presentation at the workshop on October 26 and it was also noted that there were a number of questions being raised as to whether this route should be followed. It was also pointed out that the Suburban Mayors had unanimously rejected the agreement which the County proposed It was determined that the City is losing approximately $4, 000 per week out of the grant in inflation costs, as the project was behind schedule. Bailey noted that the Council members would be re- ceiving copies of the minutes the Advisory Committee and confirmed that the project was about two weeks behind schedule. Mooney questioned whether the County' s proposed contract had been received. It was noted by Bailey that a report has been made con- - 7 - October l9, 1981 POLICE taining a very comprehensive breakdown as to using the King County jail facilities versus some alterna- tive. Cushing clarified that the' reason that the entire Council does not now have a copy of the re- port was because it was a preliminary analysis; that as soon as the figures were accurate and finaljcopies would be available. Masters questioned whether it would be appropriate for someone from the County to attend the beeting in Kent to respond to questions which might be raised. Cushing agreed that they could have someone from the County there and that, this should be after a decision is made by the Ad- visory Committee. VIP HEALTH On July 20,1 ,1981, the Council set a public hearing SPA - date for September 21, at which time the matter was continued to the October 19' Council meeting. Mayor REVOCATION Hogan opened the hearing. Wesley Hohlbein introduced OF LICENSE - himself as attorney for the DBT Corporation. He quoted from Ordinance 1919, covering revocation of licenses and asked if the City had received a written complaint against the business . It was determined that such a letter had not been received. Mirk stated that this provision was to provide an avenue for citizens to initiate revocation proceedings, _ but that the 'Council always has the authority to revoke a business license. Hohlbein opined that the City was required to follow the procedures it had established by ordinance. Upon the Mayor' s inquiry, Mirk determined that the hearing should proceed. Police Captain Byerly _stated that he took the position that he was requesting that the business license be revoked and stated that members of the Police Department would provide information as to the operation of the business. Byerly noted that Don B. Thomas filed an application for a massage parlor license in January, 1981, which was denied by the Police Chief. On February 12, 1981 Thomas signed a statement dictated by the City Attorney, stating that the business license issued on that date did not permit a massage business. Byerly read parts of his August 24, 1981 memo, a copy of which has been filed for the record and which was sent to Hohlbein by Mirk on September 29 . Hohlbein objected to Byerly' s references to a June 16 incident as heresay, inasmuch as Officer Goodman 8 - October 19 , 1981 VIP HEALTH was not in attendance to testify. Mirk suggested SPA - that the reference to this incident be disregarded. Officer Monte Driggers of the Renton Police Depart- REVOCATION ment gave testimony as to his experiences at the OF LICENSE VIP Health Spa on June 29th and Officer Winters told of his visits to the Spa on June 29 and on July 8 . Hohlbein had no questions for either of these officers. Officer Koransky stated that he had obtained a search warrant, and on July 8 , served the warrant on an employee. He noted that receipt books were found as well as a card file indicating that over 500 massages were given since April. Hohlbein ob- jected to the term "employee" , stating that the women were not employees of either DBT or VIP, that they were independent contractors. Koransky stated that a search of the lockers turned up two books containing names , services performed, and charges, some of which was written in code. Hohlbein objected, stating that it was not known who owned the books. Koransky referred to a receipt from VIP in a book, and a letter addressed to Lynn Rodriquez. It was determined that she was not arrested. Hohlbein objected, stating that there was no record of owner- ship and no connection with DBT or VIP. Upon Mirk' s question, Koransky noted that names found in the book were also found in the customer card file and in the receipt books . A sign giving the fees and "programs" for the VIP Spa was introduced. Hohlbein asked that Koransky give the name of the lawyer who was listed as having been given a massage on March 25th and Mirk stated that he had instructed the officers to not give such names. Koransky noted that there was a letter from Dr. Mayhew listing the names of employees receiving instruction. Hohlbein objected to the word "employees" stating that "independent contractors" was the correct term. Karen Wharton asked if she might speak from the audience. Mirk noted that the Council was having a hearing, open to the public, but that did not mean that input would be accepted from the public in this case. __ - 9 - October 19, 1981 VIP HEALTH Byerly determined for McCaughan that the application SPA - for a business license, including massage,, was denied by the Police Chief, and that the business license REVOCATION eventually issued did not cover the business of OF LICENSE massage. Officer Kelch determined for McCaughan that the application for business license was brought to the attention of the Police Department because the word "massage" was included in the services described on the application, and the City has a separate ordinance for this type of busi- ness . Kelch noted that Don B. Thomas then applied for a massage parlor license on January 22, 1981 and stated on that form that: "the purpose is to provide a health facility of medium size to men and women that are interested in the way they look and feel. The program will be health related services including theraputic massages and hydro- therapy (sauna and hot tub) to be administered by state licensed personnel . " Don B. Thomas explained that he was originally the president of DBT Enterprises which was the parent company of VIP Health Spa and that the corporation was formed so that it could branch out into several businesses, including the massage parlor and a restaurant and topless dancing lounge. He described his duties as president and upon Byerly' s question, Thomas stated that Dick Hart had gotten him interested in this operation but that Hart had put up no money to Thomas ' knowledge. Upon Byerly' s question, Thomas said that he has since learned that Hart also used the names Doyle Dixon and Richard or Dick Robinson. Thomas stated that Mair Rodrique was ,Secretary/ Treasurer of the corporation in the beginning but that he didn't think that he was still associated with the company. He noted that on April 21 he had been informed by letter from an attorney that the board had met and that all of the officers had been replaced. Byerly asked who was now president and Hohlbein objected, stating that this information was a matter of public record. Upon inquiries from Byerly, Thomas determined that he was president of DBT from approximately October 3, 1980 to April 21st of 1981, that Richard Hart hired all employees, since he had prior experience in the massage business, and that Hart had probably put up the money for incorpora- tion, since it was he who went to Olympia at the time. - 10 - October 19, 1981 VIP HEALTH Upon questions from the Council, Thomas said as far SPA - as he knew, Richard Hart was a consultant to DBT engaged in the operation of VIP, plus another estab- REVOCATION lishment in Factoria. He stated he was salaried and OF LICENSE was paid during March, had not as yet been paid for April and that Hart had informed him that he had no money due him. Thomas said that Hart drew up the individual contracts for the women and that under Hart 's advice, some of them were signed by Thomas. Koransky was not sure whether the Police Department had copies of any of the completed contracts. Bailey noted that it seemed strange that no one seemed to know what was going on in the business, but that massagists were operating under the control of a chiropractor, who has since left the business. Hohlbein commented that this was common practice and that it existed at the Grovner House and at the Washington Plaza and at many large hotels. Masters asked the hours of operation and Thomas answered 10 : 00 a.m, to 4 : 00 a.m. in order to be competitive with other massage parlors in the area. Mayor Hogan determined that Thomas was aware that massages were be given even though there was no license for that activity. Upon questions from Hohlbein, Thomas stated that the lack of a City of Kent license made the business improper. Hohlbein referred to a state statute allowing supervision of masseuses by specified personnel, and Thomas stated that they were operating because of that provision in the state statute. Hohl- bein asked if Thomas and Rodrique were discharged for cause, if Thomas was accused of embezzlement, or if he had been sued. Thomas said he was uncertain of what the April letter said. Hohlbein stated that the individual contracts required that all city, county and state laws be obeyed. Thomas said he did not recall the specifics of the contract documents. Byerly stated that the Police Department had a written opinion from the Attorney General ' s office describing what an "employee" is. Byerly noted that the women who gave massages and agreed to acts of prostitution had been issued citations and would appear in court. He pointed out also that DBT Enterprises, parent company of VIP Health Spa, has also been issued a citation for operating a massage parlor without a license but that the matter has not as yet been - 11 - October 19, 1981 VIP HEALTH settled. He stated that two applicants for massa- SPA - gists licenses for the City of Kent had falsified their applications and operated as massagists after REVOCATION the applications were denied by the Police Chief. OF LICENSE Byerly pointed out that a license to operate a massage parlor had never been granted to VIP and it was the revocation of the business license which was requested by the Police Department. He referred to Ordinance 2277 noting that there were several violations justifying revocation of the VIP business license, #11805. Upon McCaughan' s question, Mirk clarified that both licenses were required and noted that Ordinance 2277 provides that the massagist would not need a City of Kent massagist license if the massage was given under the direction or supervision of a licensed chiropractor, therapist, etc. Hohlbein stated that when under such supervision, the state statutes provide exemption from the local regulations. Byerly stated that we are talking about the license for the business, not for the individuals. B. John- son asked if the chiropractor had to be on the pre- mises and Mirk clarified that he did not, that the intent was that he had prescribed the massage. Hohlbein questioned Mirk and Mirk maintained that the state did not preempt the city, and that the business needed a permit. Mirk pointed out that an application for a massage parlor license had been filed, but had been denied. Hohlbein stated that the requirement for the city massage parlor license was exempted by state statute. Hohlbein introduced the president of DBT, Dennis McLachan. Hohlbein asked Byerly that, assuming preemption by state statute, if the business asked Byerly to screen people who were to work on the premises, if Byerly would do so. Byerly stated that probably he would do a background check. Hohlbein stated that the county would not do it. Byerly stated that there are some applications for which background checks are done. Hohlbein asked Koransky if he would run background checks for a massage parlor operator who stated that he had some personnel problems and Koran- sky stated he would not. Upon questions from Hohlbein, McLachan stated that he had been president since July 21, 1981, had been 12 - ...... .... October 19, 1981 VIP HEALTH chosen by the Board of Directors because the previous SPA - officers were incompetent. He said he immediately rescinded all the individual contracts of those REVOCATION who had been arrested because their contracts stated OF LICENSE that they would do nothing illegal. McLachan stated that none of the women from VIP had been convicted of offering and agreeing to an act of prostitution. He noted that before he took over, the women worked only for tips but now DBT is in the rental equipment business, explaining that saunas, hot tubs, massage tables are rented to the independent contractors for customer service and then the women get a rental rebate, in addition to any tip the customer may give her. He explained that there were several programs offered to customers. Upon Masters' question, it was determined that one of the contractors was a man. Mirk noted that what has occurred at the VIP Health Spa since McLachan took over is not relevant to this hearing, that we are concerned with what happened prior to that time. Hohlbein read the provisions of the revocation ordinance and stated his witness should be heard. McLachan stated that the Spa opened on March 3, 1981 and that no massage was given until March 25th when a letter was received from the state which was inter- preted to mean that the Spa fell under the exemption. He stated that he was the sole officer and that the articles of incorporation were amended on October 8 . Upon questions from the Council, he stated that DBT is owned by another Washington corporation, Preferred Investment Enterprises. Upon Hohlbein' s questions, McLachan stated that he had terminated the contracts of the women who were arrested on July 8 and that the people now on the premises had no prior arrest records. He said he would like to have the contractors screened, and that DBT had over $48 , 000 invested in the spa and the investment would be lost if the business license was revoked. Upon Koransky' s question, McLachan reiterated that the first massage was given on March 25, the day the letter from the state was received. Koransky noted that the customer files revealed that massage was given on March 14 . McLachan stated that that was before he took over and that the spa had been mis- - - 13 - e October 19, 1981 VIP HEALTH managed. Upon questions from Koransky and Kelch, SPA - it was determined that Rick James was president of DBT immediately prior to McLachan and that REVOCATION James had been fired by the Board of Directors, OF LICENSE consisting of Keith Peterson and Walter Saler and that Michelle Robinson could have been a director at that time. McLachan stated that neither Robinson or Rick James are directors now, but that James was a consultant, hired because the books were off. The audit is still going on, conducted by James O'Connor. McLachan stated that Doyle Dixon had no relationship to the corporation and Koransky noted that Dixon had keys to all the doors. McLachan stated that that was prior to the time he became president. Upon further questions, McLachan stated that neither Michelle Robinson or Rebecca Golden worked for the corporation. In answer to Kelch' s questions, McLachan stated he was approached about the job by Keith Peterson who was secretary of the corporation and also talked to Rick James, consultant, and former president of the corporation and that after McLachan was hired that James ' services were no longer required. He pointed out that the articles of the incorporation were changed and only one officer was required, so Peterson was no longer an officer. Regarding affiliations with Preferred Investments Enterprises, McLachan stated he didn 't think Peterson was affiliated, that Robinson was not and that Walt Saler was affiliated. Upon Byerly' s inquiry, McLachan stated that he was the president of record of DBT dba VIP as shown in Olympia. Hamilton concluded that if DBT was in the rental equipment business, as McLachan had stated, then VIP must be in the same business, since DBT was doing business as VIP. McCaughan asked if the letter DBT received from the state actually exempted DBT from having a massage parlor license for the City of Kent. Mirk stated he hadn't seen the letter. Hohlbein stated that that issue would have to be decided in court in Kent scheduled for December 4, 1981. He suggested that McLachan had in fact fired any questionable contractors, and had asked the Police Department to screen any future contractors. He further suggested that the matter not be resolved until after the court case on December 4 . 14 - October 19, 1981 VIP HEALTH B. Johnson asked if any remodeling had been done SPA - to provide windows in the doors and to remove the locks from the doors as the ordinance requires. REVOCATION McLachan stated there were no locks on the doors OF LICENSE but that there were no windows. Byerly asked McLachan if he had applied for a new application for the VIP Health Spa since he became president. McLachan stated that he was not aware that a new business license application was required every time there was a change of officers, that at the state level the information only had to be updated once a year. McCaughan asked about the hours of operation and it was clarified that there were restricted hours for massage parlor licenses, but that VIP did not have such a license, that they only had a business license. Upon Koransky' s questions , McLachan stated that there were independent contractors now working, that each gave three to four massages per day, that VIP paid them $5 per customer as equipment rent rebate, that they also received tips from the customers and that, as independent contractors, they paid their own social security. He noted that he was assisted in interviewing contractors by Lynn Thomas the manager, who is also an independent contractor, receiving also a percentage on each customer. He stated that DBT had no employees other than himself. Bailey asked if McLachan had been previously employed by Preferred Investments Enterprise and he stated he had not, that he had been in the car business, licensed and bonded. Mirk again explained that this was a Council hearing that was open to the public, but testimony from the public was not appropriate. Byerly spoke privately with Ms. Wharton in the audience, to see if her com- ments were relevant and he reported that they were heresay. Masters asked why we had held the hearing over to this date. Mirk explained that we had been unable to serve the officers of the business with the notice, because the officers had changed from the names listed on the application. BAILEY MOVED to close the hearing, B. Johnson seconded. Mooney offered a substitute motion to continue the hearing until the regular meeting of December 7, after the matter had been heard in court. J. Johnson seconded and the motion carried unanimously. 15 - October 19, 1981 COUNCIL Public Works. Mooney reported that there would be COMMITTEES no Public Works Committee meeting this week. Public Safetv. B. Johnson noted that the Committee had discussed hazardous materials permits at the last meeting and it had been decided to make no changes in the procedure at this time. CHAMBER Ford Kiene noted that the Chamber of Commerce would OF be hosting a local government sponsored meeting at COMMERCE the Golden Steer Restaurant at 7: 30 a.m. on October 21st to hear Gary Grant and Janet Holmes . FINANCE (CONSENT CALENDAR ITEM 5E) Foster & Marshall Agreement. AUTHORIZATION for the Mayor to sign the agreement for Foster & Marshall to act as underwriters for bonds for the proposed improvements to the City's water and sewer utility systems. (CONSENT CALENDAR ITEM 5B) Approval of Bills . APPROVAL of payment of the bills received through October 20, 1981 after auditing by the Finance Committee at its meeting at 3:00 p.m. on October 30 , 1981. ADJOURNMENT BAILEY MOVED to adjourn the meeting at 11 : 00 o 'clock p.m. , B. Johnson seconded. Motion carried. I Marie Je' en, CMC " City Clerk _ 5-L. Golf Course Capital Improvement Fund The Parks Department requests that the Golf Course Capital Improvement Fund be increased from $137, 000 to $192, 600 with the increase to be offset from 1981 unanticipated revenue, interest earned, and a loan of $26, 240 from the general fund to be reimbursed in 1982 from Golf Complex revenues . .................... CITY OF KENT CITY COUNCIL AGENDA OCTOBER 19, 1981 8: 00 P.M. Council Chambers NOTE: Items on the Consent Calendar are either routine or have been previously discussed. Any item may be re- moved by a Councilperson. 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMUNICATIONS A. Proclamation - United States Day 4. PUBLIC HEARINGS A. Revocation of Business License for VIP Health Spa B. LID 299 - Sanitary Sewers S.E. Corner of James Street and West Valley Highway C. Federal Shared Revenue - Proposed Use 5. CONSENT CALENDAR A. Minutes B. Bills C. Environmental Excise Tax D. Animal Control Ordinance E. Foster & Marshall Agreement F. LID 285 - West Hill Island Sanitary Sewers G. LID 302 - Rose Avenue Water Main (79th Avenue S. - S. 262nd to S. 266th Streets) H. SCS Project I. Engineering Department Project Management Study J. East Hill Well K. Central Avenue Improvements Golf Course Capital Improvement Fund M. 1981 Water Supply N. Reappointments - Arts Commission 6. OTHER BUSINESS A. Metro 201 Plan B. Tax Levy Ordinance 7. BIDS 8 . REPORTS A. Finance & Personnel B. Public Works C. Parks Committee D. Public Safety E. Administrative Reports 9. CONTINUED COMMUNICATIONS 10 . ADJOURNMENT Council Agenda October 19, 1981 Page Two COUNCIL ACTION 3. PUBLIC COMMUNICATIONS A. Proclamation - United States Day 4. PUBLIC HEARINGS A. Revocation of Business License for VIP Health Spa On July 20, 1981 the Council set a public hearing on this matter for September 21, 1981, at which time the hearing was continued to October 19, 1981. Mayor to open the public hearing. Correspondence: Comments: Councilperson moves, Councilperson seconds to close the public hearing. Discussion: Action: Further action by the Council: B. LID 299 - Sanitary Sewers S.E. Corner of James Street and West Valley Highway This date has been set for the public hearing on the don- firmation of the final assessment roll for LID 299. The final assessment roll totals $85, 935.72. Mayor to open the public hearing. Correspondence: Comments: Council Agenda October 19, 1981 Page Three 4 . PUBLIC HEARINGS B. LID 299 - Sanitary Sewers S.E. Corner of James -Street and West Valley Highway Councilperson moves, Councilperson seconds to close the public hearing. Discussion: Action: Councilperson moves, Councilperson seconds that the City Attorney be directed to prepare the ordinance confirming the final assessment roll for LID 299. Discussion: Action: C. Federal Shared Revenue - Proposed Use Notice of-a public hearing has been given for this date for input and suggestions from the public concerning the proposed use of Federal Revenue Sharing Funds. The Final Federal Revenue Sharing hearing will be held in December in conjunction with the public hearing on the 1982 budget. The funds expected for 1982 amount to $493, 892. Mayor to open the public hearing. Correspondence: Comments: Councilperson moves, Councilperson seconds to close the hearing. Discussion: Action: Councilperson moves, Councilperson seconds that Council Agenda October 19, 1981 Page Four 5. CONSENT CALENDAR Councilperson moves, Councilperson seconds that the Consent Calendar Items A through M be approved. A. Minutes Approval of the minutes of the regular Council meeting of October 6, 1981. B. Bills Approval of payment of the bills received through October 20, 1981 after auditing by the Finance Committee at its meeting at 3: 00 p.m. on October 30, 1981. C. Environmental Excise Tax Directing staff to develop guidelines for exempting recrea- tional buildings from the Environmental Excise Tax, as was discussed at the October 12th workshop. D. Animal Control Ordinance Adopting Ordinance relating to licensing and control of animals within the city. This ordinance was discussed at several workshops, most recently on October 12, and the new ordinance will repeal all prior ordinances. E. Foster & Marshall Agreement Authorization for the Mayor to sign the agreement for Foster & Marshall to act as underwriters for bonds for the proposed improvements to the City' s water and sewer utility systems . This was discussed at the October 12 workshop. F. LID 285 - West Hill Island Sanitary Sewers The Public Works Department recommends a public hearing date of November 16, 1981 be set to confirm the Final Assessment Roll for LID 285 - construction of sanitary sewers in the West Hill Island area. G. LID 302 —Rose Avenue Water Main (79th Avenue S. - S. 262nd to S. 266th Streets) The Public Works Department recommends a public hearing date of November 16, 1981 be set to confirm the Final Assessment Roll for LID 302 - construction of a water main on 79th Avenue S. from S. 262nd to S. 266th Streets. Council Agenda October 19, 1981 Page Five 5. CONSENT CALENDAR H. SCS Project The Public Works Director has requested that $3, 000 be transferred from the Maple Street project fund to cover the expenses being incurred for the SCS project. Anti- cipated expenses would be for title reports and preparing maps. The Public Works Committee has recommended approval of this request. I. Engineering Department Project Management Study In preparing their 1981 year-end expenditures, the Engineer- ing Department included $5, 000 for a project management training session for their staff. The training would be conducted by Matrix Management Group for the engineering staff and would result in documentation of project manage- ment procedures. The Public Works Director requests approval to proceed with the study and Public Works Committee concurs with the request. J. East Hill Well The Engineering Department requested the contractor to in- stall a manhole at 248th and 104th for maintenance purposes. The change order submitted by the contractor for this addi- tional work causes the project to exceed the budget by $600. The Public Works Committee has reviewed the Public Works Director ' s request to transfer $1, 000 from the clearing fund to this project fund and have recommended approval of the request. K. Central Avenue Improvements The Public Works Director has requested that $1, 000 be trans- ferred from the Maple Street project fund into a fund to cover the expenses incurred for the title reports for the Central Avenue Improvements project. These title reports were required for staff to contact the property owners in- volved to discuss donations of right-of-way. The Public Works Committee has recommended approval of this request. L. Golf Course Capital Improvement Fund The Parks Department requests that the Golf Course Capital Improvement Fund be increased from $137 , 000 to $192, 600 with the increase to be offset from 1981 unanticipated revenue, interest earned, and a loan of $26, 240 from the general fund to be reimbursed in 1982 from Golf Complex revenues . Council Agenda October 19, 1981 Page Six 5. CONSENT CALENDAR M. 1981 Water Supply The Engineering Department requested the contractor to drill deeper than originally proposed on one of the wells included in this project contract. The additional work requested caused the project to exceed the budget by about $6,000. The Public Works Director has requested that $7,000 be transferred from the clearing fund into this project fund. The Public Works Committee has reviewed this request and recommends approval of the transfer of funds. N. Reappointments The Arts Commission requests approval of the reappointment of the following Arts Commission members: Carolyn Wiley, Laurel Whitehurst, June Mercer, and Susan Dailey. 6. OTHER BUSINESS A. Metro 201 Plan This matter was discussed at the workshop meeting of October 12. Councilperson moves, Councilperson seconds to (accept - reject) Metro ' s recommendation for the proposed Seahurst Park effluent discharge plan. Discussion: Action: B. Tax Levy Ordinance We have received notice that the deadline for filing the Ordinance setting the tax levy for 1982 is October 28. As of October 15, the Finance Director has not received the necessary information from the County Assessors office. If it is received in time for this meeting, the ordinance will be presented. 7 . BIDS No bids. ...... ..... Council Agenda October 19, 1981 Page Seven 8. REPORTS A. Finance & Personnel B. Public Works C. Parks Committee D. Public Safety E. Administrative Reports 9. CONTINUED COMMUNICATIONS 10. ADJOURNMENT Councilperson moves, Councilperson seconds that the meeting be adjourned at p.m.