MINUTES OF 01/11/07 REGULAR CITY COUNCIL MEETING

135 East Johnson Avenue, Chelan, Washington

PRESENT:  Mayor Witherbee, Council Members Morehouse, Olsen, Harper, Pape-Miller, Weldy, McCulley, Rodionoff, Administrator Fonfara, City Attorney Galbraith, Interim Clerk Lingle, Public Works Director VanEpps.

Mayor Witherbee called the meeting to order at 7:00 P.M.

CONSENT AGENDA

Morehouse moved to approve the consent agenda as follows:

1.  Approve Payroll Warrants No. 25549 through 25610 totaling $93,495.90

     Approve Payroll Warrants No. 25611 through 25684 totaling $120,043.85

     Approve Claims Warrants No. 57172 through 57215 totaling $84,269.81

     Approve Claims Warrants No. 57218 through 57261 totaling $65,067.64

     Approve Claims Warrants No. 57262 through 57280 totaling $13,036.56

2.  Approve Minutes of 11/08/2006 Special City Council Meeting & 11/09/2006 regular City      Council Meeting

Seconded by McCulley, motion passed unanimously.

VISITORS/PUBLIC INPUT

ALL CLASS REUNION:  Russell Miller, 225 E Trow, reported an All Class Reunion for Chelan High School is being scheduled June 8, 9 & 10 in celebration/honor of 100 years since the first graduating class from Chelan High School.

A SIMPLE SURVEY:  Bob Goedde, 118 N Wilson, reported he has been conducting a simple survey of the community regarding WalMart.

HISTORICAL DOWNTOWN CHELAN ASSOCIATION LIGHTING COMMITTEE: Peter Vaglio, 312 Eldorado Way, commended the city and public works department for assistance provided to the lighting committee this last year.  Vaglio went on to report on the status of the lighting committee over the last 4 years.   

REGULAR AGENDA

REPORT ON ROTARY/PINGREY PARK:  Scott McKellar, Rotary Representative, reported on the status of proposed Pingrey Park site improvements by the Rotary Club.

INTRODUCTION OF CHELAN COUNTY PUD FRANCHISE/ORDINANCE AGREEMENT:  Administrator Fonfara reported the city and Chelan County PUD have been negotiating the terms and conditions of a Franchise/Ordinance Agreement for the past year.  The agreement provides the PUD the authority to construct, locate, install, etc. its utility systems within the right-of-way and city properties for a 25 year period.  The Franchise Agreement also provides for an annual $1,200.00 administrative fee to be paid to the city and a one time lump sum payment of $1,000.00 to cover a portion of the city's administrative and legal costs to develop the franchise agreement.  Additionally as part of the agreement, the PUD has agreed to do the undergrounding  of overhead power in Phase 1A of the Lakeside Trail Project which is generally from Don Morse Park  to the intersection of Columbia & Johnson.  As required by state law, an introduction of the franchise ordinance must precede consideration of  approval by a minimum of five days.  Council will be asked to adopt the franchise ordinance at the January 25, 2007 City Council Meeting.  Special Legal Council, Steve Smith, who has represented the City on this matter will be in attendance at the January 25th meeting to address all legal issues.

Mayor Witherbee thanked Barbara VanEpps for her assistance in putting together the grant application to the DOT which was recently selected for the Lakeside Trails Project.

LAKE HILLS DEVELOPMENT AGREEMENT:  Administrator Fonfara explained the purpose of this agreement is to give Lake Hills Residential subdivision permission to install the sewer line on different portions of the Golf Course property.  A similar development agreement with Lake Hills for this project was approved by Council on September 28, 2006.  However, due to unforeseen circumstances, the developer was not able to undertake the work and never entered into the agreement.  The new agreement specifies the scope of work to be done in mid February.  The remaining terms of the agreement council approved in September are generally the same.

McCulley moved to approve the development agreement between the City of Chelan and Lake Hills Development LLC and authorize Mayor Witherbee to sign the agreement.  Seconded by Harper, motion passed unanimously.

UTILITY EXTENSION AGREEMENT LAKE HILLS:  Public Works Director VanEpps advised the agreement relates to the infrastructure required by developers to build within their own development.  The developer will be required to construct extensions to the City's road, water and sewer infrastructure as part of the development of the property.  Consistent with the City's Development Standards, this agreement assures proper engineering, inspection and testing of the infrastructure to assure it meets our criteria.

Rodionoff move to authorize Mayor Witherbee to enter into an Agreement for Extension of Chelan Infrastructure with Lakehills Development.  Seconded by Harper, motion passed unanimously.

COUNTRYWIDE HOME LOANS LEASE AGREEMENT:  Administrator Fonfara advised Council is asked to enter into a lease agreement with Countrywide Home Loans for the lease/rental of the former City Municipal Court space.  The lease would be a one year lease with an option for two additional one year terms.  The cost would be $1.50 per square foot per month for 861 square feet including utilities equaling $1291.50 per month plus leasehold tax of 12.84%.  If Countrywide Home Loans chooses to renew the lease, the second year would be an additional 3% of rent and second renewal would be another 3% increase of rent.

Pape-Miller moved to approve the lease agreement between the City of Chelan and Countrywide Home Loans and aughorize Mayor Witherbee to sign the lease agreement.  Seconded by Weldy, motion passed unanimously.

SALARY CLASSIFICATION STUDY AMENDMENT - OFFICE ASSISTANT:  Administrator Fonfara introduced Resolution No 07-1164 amending the City's Salary Classification Study to establish an Office Assistant position for the Department of Planning & Community Development.  The funding for this position was approved by Council in the 2007 budget at salary grade 19 as a recommended salary.  As per the city's Collective Bargaining Agreement, the City has the obligation to meet with the union within fifteen working days to facilitate wage negotiations for the position.  Based on the City's assessment of job duties of the office assistant it is compatible with some of the other jobs also at salary grade 19.

Rodionoff move to adopt Resolution 07-1164 amending the City of Chelan Salary/Classification Study adopted July 13, 2000.  Seconded by McCulley, motion passed unanimously.

WATER RIGHTS TRANSFER AGREEMENT WITH NO-SEE-UM ORCHARD LLC:  Public Works Director VanEpps advised the No-see-um Orchard, owned by the Campbell family, removed the majority of the orchard in anticipation of future development. Once an orchard is removed, Department of Ecology removes the water rights to the property after five years. No-see-um Orchard has asked the City to take all of their water rights under the city's municipal umbrella and hold them.  At the time they develop, City of Chelan will keep the amount of water rights associated with their post development needs consistent with the newly adopted Water Rights Transfer Ordinance and have the option of purchasing the excess.  In the event they do not develop by July 2012, No-see-um Orchard relinquishes all of the water rights to the City of Chelan.   

Harper moved to authorize Mayor Witherbee to sign the "Water Rights Transfer Agreement" with No-see-um Orchards LLC.  Seconded by Rodionoff, motion passed unanimously.

LIABILITY INSURANCE REQUIREMENT FOR SNOWMOBILE RACE EVENT:

City Administrator Fonfara asked Council to consider the issue of requiring general liability insurance coverage for the Snowmobile Race Event scheduled January 13 & 14, 2007 at the City's RV Park.  The City's insurance provider, Washington Cities Insurance Authority/WCIA, advised the City that the general liability insurance coverage being provided by the Lake Chelan Snowmobile Club excludes participant coverage.  Based on the exclusion of participant coverage and the very dangerous nature of snowmobile racing, WCIA strongly advised the City that the event not be permitted at the RV Park.  Without participant liability coverage the risks assumed by the City are great.  Administrator Fonfara advised Brett LaMar, President of the Lake Chelan Snowmobile Club, of his decision as Chelan City Administrator not to permit the snowmobile races to occur at the City's RV Park. City council has the authority to reverse the City Administrator's decision based on an appeal of an applicant of a Special Event Application.

Lengthy Council discussion followed. 

McCulley moved to reverse the City Administration decision to not permit the snowmobile races and go forward with them at the City RV Park and to direct Administration to issue the permit for the snowmobile races this upcoming weekend.  Seconded by Harper, motion passed unanimously. 

AUTHORIZATION TO HIRE TEMPORARY SECURITY EMPLOYEE FOR SNOWMOBILE RACES:  City Administrator Fonfara advised Council is asked to authorize the hiring of a temporary employee (Chelan County Reserve Officer) to provide special temporary security for the Snowmobile Races Event for 8 hours at $25.00 per hour.  The security person will maintain the security and protection of the snowmobile equipment at the RV Park on Saturday night, January 13th. 

McCulley moved to authorize the hiring of a Temporary Security Employee for the Snowmobile Race Event and to amend the 2007 City Budget establishing this position at a pay rate of $25.00 per hour.  Seconded by Olsen, motion passed unanimously.

2006 CITY BUDGET AMENDMENT:  Administrator Fonfara advised following final posting of year end expenditures, it was determined the Sanitation Fund over expended their operations and maintenance budget requiring a budget amendment.  The primary line items affected include fuel costs and equipment repairs.  Additionally minor adjustments were made to the Salary & Wages line item for full time employees in both Sanitation and Recycling.  These expenditures/costs are offset by additional revenue received in garbage collection and sale of recycled materials.  The changes to the budget are outlined in Ordinance No. 2007-1330.

Pape-Miller moved to adopt ordinance No. 2007-1330 amending the 2006 budget ordinance No. 2005-1313.  Seconded by Weldy, motion passed unanimously.

2006 AIRPORT BUDGET AMENDMENT:  Administrator Fonfara advised this proposed resolution amends the budget to allow for increased aviation fuel costs which are offset primarily by increased aviation fuel sales.  In addition, minor adjustments are being made to Repairs & Maintenance and Professional Services line items.  These expenditures are offset by additional revenue received from Rentals & Leases.

Rodionoff moved to adopt Resolution 2007-1165 amending the 2006 Airport Budget Resolution No. 2005-1135.  Seconded by Morehouse, motion passed unanimously.

At 7:55 p.m. Council meeting recessed to allow the Mayor and Council Members to participate in the regular meeting of the Lake Chelan Airport Board. Council meeting reconvened at 7:57 p.m. following adjournment of the Airport Board meeting.

                                                  REPORTS/COMMENTS

PAPE-MILLER:  Expressed concern with the 11th hour situation for the snowmobile races being a ditto of the Triathalon.

WELDY:  Advised he received several complaints from local businesses on lack of adequate snow removal in alleys.  Also snow built up from City plowing was blocking garbage receptacles and the sanitation crew did not empty their cans.  Weldy advised the citizens it was the responsibility of the customer to clear away the snow to allow for garbage pickup.    

Weldy expressed concern over the messy appearance of the accumulated refrigerators as well as other items stacked up next to the building/business at Stop Light Corner. 

MCCULLEY:  Commended Community Development Director Gildroy on the wonderful job he did on the KOZI interview.

Commended Public Works on the wonderful job they have done on snow removal throughout Chelan.

RODIONOFF, HARPER & OLSEN:  Agreed with McCulley on the wonderful job Public Works has done on snow removal.

MOREHOUSE:  Morehouse expressed appreciation to all the people showing up for the council meeting. 

Morehouse expressed his appreciation to all City employees.

Olsen moved to adjourn the regular meeting and go into executive session to discuss pending litigation to last no longer than 30 minutes.  No action will be taken.   Seconded by Rodionoff, motion passed unanimously.

At 8:03 p.m. Mayor Witherbee and Council Members adjourned to executive session.

At 8:30 p.m. Mayor Witherbee advised the executive session would continue for no longer than an additional 30 minutes.

 The regular meeting reconvened at 9:02 p.m. following adjournment of the executive session.

There being no further business, meeting adjourned at 9:02 p.m.

________________________________                         _____________________________

Patricia Lingle, Interim City Clerk                                     Date Approved by City Council