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HomeMy WebLinkAboutCity Council Committees - Public Works/Planning - 11/14/19940 Sops Creek Future Service Interlocal Agreement Brubaker distributed copies of the agreement noting that it was very straight forward. It establishes the future sewer service areas between Kent and the Soos Creek Water & Sewer District. As the City annexes, it will encroach upon an area currently served by Soos Creek Water & Sewer District. Brubaker noted that if we annex into their area, would we want to try to take over a portion of their system? Wickstrom noted that his concern is, does this foreclose on any future option? Brubaker stated, theoretically, this would - he noted that he didn't feel that the City could contract away councilmanic power. Wickstrom said that if we were to annex that area, 60% of the district would still be outside of the City in terms of assessed value. In response to Clark, Wickstrom explained that the breakline is: we establish what area we would service based on our system as it exists today and as we see it in the future; their system abuts that and they take in everything else which is based on their long range planning. So, the boundary is decided based on what is 'reasonable' service based on the system we have and any amendments to it. Wickstrom said that ours are gravity flow lines, Soos Creek is multiple pump systems. He further noted that their system is set up so that it will always be pumped and for us to take portions of it and put it into ours would require new pump stations to pump into ours. Brubaker noted that we have improved relations between the City and the District and this would help to continue that relationship. He said he spoke with Mike Hanis, the District's attorney and now that we are working together, and if we establish our future service boundaries, would they be willing to require persons who want to connect to their system within Kent's future annexation area to first sign a no -protest agreement before connecting. Hanis said that yes, they would. Brubaker noted that a condition could be added on the passage of this agreement that we amend the agreement to include that requirement. That way we could continue to get no PUBLIC WORKS COMMITTEE NOVEMBER 14,1994 PRESENT: PAUL MANN LAURIE EVEZICH TIM CLARK ROGER LUBOVICH JIM BENNETT MAY MILLER DON WICKSTROM MR & MRS RUST TOM BRUBAKER MR McDONALD Sops Creek Future Service Interlocal Agreement Brubaker distributed copies of the agreement noting that it was very straight forward. It establishes the future sewer service areas between Kent and the Soos Creek Water & Sewer District. As the City annexes, it will encroach upon an area currently served by Soos Creek Water & Sewer District. Brubaker noted that if we annex into their area, would we want to try to take over a portion of their system? Wickstrom noted that his concern is, does this foreclose on any future option? Brubaker stated, theoretically, this would - he noted that he didn't feel that the City could contract away councilmanic power. Wickstrom said that if we were to annex that area, 60% of the district would still be outside of the City in terms of assessed value. In response to Clark, Wickstrom explained that the breakline is: we establish what area we would service based on our system as it exists today and as we see it in the future; their system abuts that and they take in everything else which is based on their long range planning. So, the boundary is decided based on what is 'reasonable' service based on the system we have and any amendments to it. Wickstrom said that ours are gravity flow lines, Soos Creek is multiple pump systems. He further noted that their system is set up so that it will always be pumped and for us to take portions of it and put it into ours would require new pump stations to pump into ours. Brubaker noted that we have improved relations between the City and the District and this would help to continue that relationship. He said he spoke with Mike Hanis, the District's attorney and now that we are working together, and if we establish our future service boundaries, would they be willing to require persons who want to connect to their system within Kent's future annexation area to first sign a no -protest agreement before connecting. Hanis said that yes, they would. Brubaker noted that a condition could be added on the passage of this agreement that we amend the agreement to include that requirement. That way we could continue to get no protest agreements within our future annexation area by the extension of utilities thru the Soos Creek system. Committee unanimously recommended authorization for the Mayor to sign the Soos Creek Interlocal agreement for future service boundary, including the amendment. Brubaker noted that this ordinance had a erroneous legal description attached to it. We need to adopt an ordinance which amends the legal description for Landing Way Street 'Vacation. Committee unanimously recommended authorization to amend Ordinance 3199 with the proper legal description. Mauritsen Access & Utility EaseMent Wickstrom explained that this was a small piece of property left that we have acquired in the mid -'80s on 218th St by the freeway. The balance of the property is related to a storm detention system. This small access road to the person's residence is actually on city property and the intent was to keep it as part of the parcel. In order to correct that, we want to grant them an access and utility easement over our property in order to use that existing road as their driveway to get to their house. Committee unanimously recommended authorization to execute all documents necessary to grant the easement to the property at S. 218th St & SR 167. McDonald LID Assessment Bennett commented at this time that he has read the information sent out by the City Attorney and noted that it was different than what he felt before. He asked when was the last time we foreclosed on someone's home in Kent? Evezich stated that it has been done every year when there are more than two delinquencies of payment on any LID regardless of whether it is residential or commercial property. They usually do not go all the way to foreclosure; either the property owner or the bank holding the note on the property steps in and pays off the assessment delinquency. Bennett said that he totally agrees with staff that payment record has not been consistent but this City spends more on the homeless at times than they do on a resident and feels that the Committee should refer this back to staff ter Administration and let them deal with it. a Evezich stated that originally, this issue 'came up because Councilmember Bennett requested that the City not'mdve forward with the foreclosure proceedings against this piece -of' residential property. They asked us to look into whether or not there were some options that were available to the property owner or whether there had been a lack of communication on the part of City to the owners of the parcel. Mr. McDonald was present at the last meeting and he represented to the council that he was unaware of the initial notice of the total assessment covering his property and any subsequent notice detailing what exactly the principal and interest payments were for each year that an installment was due. In addition, at a point in time when he was allowed to enter into a will -pay arrangement, it was his belief that his LID payments were never more than $50 per month. Staff was also available for comment and provided contradictory information, and Council President Woods asked us for any clarifipation and any documentation that we had to support this City's position that there was a chronic pattern of lack of payment, 'a lack of good faith in maintaining any payments, and that all the appropriate notices had been made by the City and that the City had responded to all of this obligation both by statute and by City ordinance. Clark asked if there have been any payment within that last 12 months. Evezich stated that a total of $670.00 has been paid over the life of the LID assessment which was originally assessed in 1988 with the first installment due in 1989. Sometime after the third installment notice was sent and became delinquent, the City had contacted the McDonald's and entered into a verbal agreement with them to accept a minimum payment of $50 per'month. The McDonald's agreed to pay this amount and to eventually bring their account current; 4 timely payment were subsequently made, June, July, August and Sept of 1991. The McDonalds has skipped a month and unilaterally reduced their payments to $20 per month in Nov of 1991 and did not make another payment until Jan 1'5, 1992 in the amount of $25. On February 21, 1992 the McDonald',s'paid $25; April 20, 1992 the McDonald's paid'$50; in June, July, and August of 1992 the McDonald's paid $50 for each month. No otherpayment was received until a $50 payment was received on 47an 8, 1993. No payments were received thereafter until a $50 pay;nent'was received on Sept. 24, 1993. No payments were received thereafter until August 2, 1994 and since August 2, 1994 they have made payments in Sept. Oct. and possibly for November. They have inade 4 subsequent $50 payments since they received an additional notice on August 2, 1994 where we intend to foreclose. Evezich stated that is the entire payment history. Mann asked if the mortgage holder has been advised of this situation. Evezich stated that what the City's obligation is in this situation like this is to contact the lien holders and the name and address that we have lasted on the title report is for Federal Mortgage and Investment which is not a Wa corporation. Unless we know who is servicing the loan, we cannot provide them with sufficient notice to inform them of the city's intent to foreclose. However, Evezich $fated that she has contacted the trustee for the beneficiary who is Federal Mortgage & Investment and advised him of the city's intent to foreclose. Mann recommended that this should go before the Council on the next night (Nov 15). He felt this is a matter of our integrity as a city. Evezich stated that as legal representative for the City, the statutory framework for both the formation and foreclosure process on an LID is strictly prescribed by the State of WA Legislature and the reason for this is because an LID assessment is similar to a tax; however we are only taxing a percentage of people who are especially benefitted from a certain improvement that you're making. There is a long process to go thru; at a very early stage of this process a person has an opportunity to protest or to appeal to the Council or the committee that is trying to form the LID for some kind of special deferment. Generally the deferments are only allowed in the case of advanced age or disabilities. In addition, the statutory framework requires in mandatory language....."if there are more two assessments delinquent in any year after the 1st of January, the City shall foreclose on the installments that are delinquent and collect together w4th penalties and interests." The obligation that we have is to our bond holders who have purchased the warrants that we in good faith, have set forth in order to establish the bond. There is az additional provision that sets forth a provision that states, "if the City fails to fulfill its obligation to its bondholders and diligently collect on those assessments when they become dui:, than the bondholders themselves have an action against the City.for recovery of those delinquent assessments." So, if you are talking about the City maintaining its integrity and fulfilling As obligations to its citizens, I think that our obligation is clearly to maintain our triple A rating on our bonds and to not expose the City to liability for a lack of due diligence in the collection of overdue LID assessments. Clark stated that it is very .clear, per the City Attorney's comments that we are responsible in terms of carrying this out. McDonald stated that he does not want this to go to Council. He stated that the City could go ahead with their foreclosure and he will "handle it". C Lubovich noted that this is a process that we do gvgry year and it is initiated from Finance. As far as forecloilates,, we have a timeline to follow by statute and we typically do not make arrangements for payments. He said that this particular account has been delinquent since the first payment was due. Meeting Adjourned: 6:30 p.m. 5