COMMISSIONER MEETING REGULAR MEETING MONDAY, JANUARY 11, :00 PM

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1 1 Estimated Time Minutes Allocated 04:00 PM 2 CALL TO ORDER 04:02 PM 2 APPROVAL OF AGENDA COMMISSIONER MEETING REGULAR MEETING MONDAY, JANUARY 11, :00 PM 04:04 PM 3 PUBLIC COMMENTS Public comment is limited to three minutes per person or five minutes per group 04:07 PM 3 CONSENT AGENDA A Approval of Minutes of Regular Meeting of November 2, 2015 B Approval of Minutes of Regular Meeting of November 9, 2015 C Approval of Minutes of Regular Meeting of November 16, 2015 D Approval of Minutes of Special Meeting of November 17, 2015 E Approval of Minutes of Special Meeting of November 23, 2015 F Osgood SE 24th Way Plat - Parcel Initial Acceptance ACTIVE AGENDA 04:10 PM 20 A AMI Customer Outreach - Discussion 04:30 PM 20 B Washington Association of Sewer and Water Districts (WASWD) Request to Review Senate Bill Utility Tax - Discussion REPORTS 04:30 PM 5 Attorney 04:35 PM 5 General Manager 04:40 PM 20 Commissioner 05:00 PM ADJOURN Next Meeting - Special Meeting - Monday, January 18, 2016

2 Consent Agenda 2

3 3 Consent Agenda Item A

4 4 BOARD OF COMMISSIONERS SAMMAMISH PLATEAU WATER & SEWER DISTRICT TH Ave. S.E., Sammamish, Washington Regular Meeting Minutes November 2, 2015 Board President Lloyd Warren called the regular meeting to order at 4:00 p.m. A quorum represented by Commissioners Lloyd Warren, Mary Shustov, Karen Moran, and Mahbubul Islam was present. Also present were District staff Jay Krauss, Jay Regenstreif, Scott Jonas, Angel Barton, Kevin DeRouen, Jillian Hostenske, and Paddy Moe. John Milne, District legal counsel, was also present. Commissioner Harman arrived at 4:08 p.m. APPROVAL OF THE AGENDA Motion: Commissioner Moran made a motion approving the agenda as presented. Commissioner Shustov seconded the motion. The motion carried unanimously. PUBLIC COMMENTS There were none. CONSENT AGENDA Minutes: September 8, 2015 Regular Meeting Change Orders: East Lake Sammamish Parkway 16 Transmission Main Replacement Project Change Orders 1 and 2 Agreement: SPWSD-Benson Boundary Line Agreement Final Acceptance Resolution: Broadmoor Acres Lot 8 Short Plat Parcel Vouchers: Payroll DD $106, Department of Retirement Public Employees Retirement System WT $27, Health Equity HSA WT $ ICMA Deferred Compensation WT $3, King County Finance Payroll Taxes WT $42, WA State Treasurer Deferred Compensation WT $3, Maintenance Fund $717, Construction Fund $10, Total $910, Motion: Commissioner Moran made a motion approving the consent agenda as presented. Commissioner Islam seconded the motion. The motion carried unanimously. Sammamish Plateau Water & Sewer District November 2, 2015 Page 1

5 5 A FISCAL YEAR AUDIT EXIT CONFERENCE Wendy Choy, Brandi Breaux, and Haji Adams, all from the Washington State Auditor s office, introduced themselves to the Board. Breaux reported the 2014 Fiscal Year Audit was a clean audit, with no findings. Breaux thanked the staff for their assistance during the audit. Breaux provided copies of the 2014 Financial Statements and Federal Single Audit Report to the Board. Adams explained the Federal Summary, Independent Auditor s Report on Financial Statements, and the Audit Summary to the Board. Adams further reported the final report is accessible at the State Auditor s website portal. Choy commended the District on the 2014 Fiscal Year Audit. ATTORNEY/MANAGER/COMMISSIONER REPORTS General Manager Reported on an upcoming meeting with Northeast Sammamish Sewer and Water District Board members. Krauss requested any discussion topics for the meeting be sent to him before November 9, Reported the Advanced Metering Infrastructure (AMI) Contract is now being reviewed by attorneys for both SPWSD and Mueller Systems, Inc. Reported the 2016 Draft Budget will be presented at the November 9, 2015 Board meeting. Commissioners Commissioner Shustov Reported on her attendance at a recent Metropolitan Water Pollution Abatement Advisory Committee meeting. Commissioner Islam Reported on his attendance at a recent East King County Regional Water Association meeting. Commissioner Moran Reported on various information handed out to voters during the campaign season from candidates running for the Sammamish City Council. Moran recommended the District respond to the misinformation provided in those handouts by presenting the actual facts to District ratepayers through the District s newsletter and other social media. Commissioner Warren Reported on his attendance at a recent Cascade Water Alliance Board meeting. ADJOURN As there were no further persons to be heard or business to discuss, the meeting was adjourned at 4:45 p.m. Mary Shustov, Secretary Sammamish Plateau Water & Sewer District November 2, 2015 Page 2

6 6 Consent Agenda Item B

7 7 BOARD OF COMMISSIONERS SAMMAMISH PLATEAU WATER & SEWER DISTRICT TH Ave. S.E., Sammamish, Washington Regular Meeting Minutes November 9, 2015 Board President Lloyd Warren called the special meeting to order at 4:00 p.m. A quorum represented by Commissioners Lloyd Warren, Karen Moran, Mary Shustov, and Mahbubul Islam was present. Also present were District staff Jay Krauss, Jay Regenstreif, Scott Jonas, Angel Barton, Kevin DeRouen, Jillian Hostenske, Kyle Wong, Tammy Whipple, and Paddy Moe. John Milne, District legal counsel, was also present. Commissioner Shustov attended via teleconference. Commissioner Harman attended the meeting later as these minutes indicate. APPROVAL OF THE AGENDA Motion: Commissioner Moran made a motion approving the agenda as presented. Commissioner Islam seconded the motion. The motion carried unanimously. PUBLIC COMMENTS There were none. CONSENT AGENDA Financing Agreement: Uselman Sewer Local Facility Charge Financing Agreement Parcel Motion: Commissioner Moran made a motion approving the consent agenda as presented. Commissioner Islam seconded the motion. The motion carried unanimously. A DRAFT BUDGET PRESENTATION Krauss presented the 2016 Draft Budget to the Board. Krauss explained staff s presentation is a first introduction to the 2016 Budget, which will allow feedback from the Board. Krauss further explained the final budget will be presented for adoption at the December 14, 2015 Board meeting. Commissioner Harman attended the meeting at 4:17 p.m. B RATE ANALYSIS PRESENTATION Chris Gonzales, consultant for FCS Group, presented the 2015 Water and Sewer Rate Update to the Board. Sammamish Plateau Water & Sewer District November 9, 2015 Page 1

8 8 ATTORNEY/MANAGER/COMMISSIONER REPORTS General Manager Krauss reported he was unable to attend a recent meeting with the Washington State Department of Health regarding the proposed regulation of underground injection controls. Krauss further reported attorney James Tupper was able to attend the meeting on the District s behalf which will be reported on at a later date. Commissioners Commissioner Harman Reported on his attendance at the Sno-King meeting held earlier today. Harman further reported there was discussion related to the Open Public Meetings Act as it relates to Sno-King meetings. Reported the City of Des Moines is proposing a 16% utility tax on the revenues of water-sewer districts providing utility services within Des Moines. Commissioner Moran Reported on the upcoming meeting with Northeast Sammamish Sewer and Water District. ADJOURN As there were no further persons to be heard or business to discuss, the meeting was adjourned at 6:15 p.m. Mary Shustov, Secretary Sammamish Plateau Water & Sewer District November 9, 2015 Page 2

9 9 Consent Agenda Item C

10 10 BOARD OF COMMISSIONERS SAMMAMISH PLATEAU WATER & SEWER DISTRICT TH Ave. S.E., Sammamish, Washington Regular Meeting Minutes November 16, 2015 Board President Lloyd Warren called the regular meeting to order at 4:01 p.m. A quorum represented by Commissioners Lloyd Warren, Mary Shustov, Karen Moran, Tom Harman, and Mahbubul Islam was present. Also present were District staff Jay Krauss, Jay Regenstreif, Scott Jonas, Tammy Whipple, Angel Barton, Kyle Wong, and Paddy Moe. John Milne, District legal counsel, was also present. APPROVAL OF THE AGENDA Krauss requested Item B, Evergreen Ford Detail Shop, be moved from the consent agenda to the active agenda as Item F. Krauss requested an executive session for potential litigation be added to the active agenda. Motion: Commissioner Islam made a motion approving the agenda as amended to include the addition of Item F, Evergreen Ford Detail Shop, to the active agenda, and to include an executive session for potential litigation, per RCW (1)(i), to the active agenda. Commissioner Moran seconded the motion. The motion was unanimously approved. PUBLIC COMMENTS There were none. CONSENT AGENDA Minutes: October 12, 2015 Regular Meeting Minutes Final Acceptance Resolutions: Field E Lake Sammamish NE Short Plat Parcel Ruud Lot 90 Sewer in Overdale Park Parcel Assignment and Assumption Agreements: Corbin Redmond Ridge 9002 Short Plat (East) Parcel Corbin Redmond Ridge 9084 Short Plat (West) Parcel Hawk Estates Parcel Vouchers: Payroll DD $108, Department of Retirement Public Employees Retirement System WT $27, Health Equity - HSA WT $ ICMA Deferred Compensation WT $3, King County Finance Payroll Taxes WT $43, WA State Treasurer Deferred Compensation WT $3, State of WA - Excise Tax Maintenance Fund WT $90, Sammamish Plateau Water & Sewer District November 16, 2015 Page 1

11 11 State of WA Excise Tax Joint Fund WT $ Maintenance Fund WT $401, Maintenance Fund WT $16, Maintenance Fund WT $31, Joint Fund $2, Construction Fund $167, Total $896, Motion: Commissioner Moran made a motion approving the consent agenda as amended. Commissioner Islam seconded the motion. The motion was unanimously approved. EXECUTIVE SESSION POTENTIAL LITIGATION - RCW (1)(i) Krauss requested an executive session to discuss potential litigation relating to an Issaquah utility franchise matter. Commissioner Moran so moved on that basis. Commissioner Islam seconded the motion, which carried unanimously. Before convening the executive session at 4:05 p.m., Commissioner Warren announced the executive session would conclude at 4:25 p.m. The Commissioners, Krauss, Regenstreif, and Milne then attended the executive session. At 4:25 p.m. the executive session was extended to 4:30 p.m., which was publicly announced. At 4:30 p.m., the executive session concluded and open public meeting was reconvened. Motion: Commissioner Moran made a motion directing staff to speak with City staff, Milne to speak with the City Attorney, and Commissioner Warren to speak with Issaquah Mayor Butler to see if the franchise matter can be resolved. Commissioner Shustov seconded the motion. The motion was unanimously approved. A. 223 RD MULLEN-WARREN ASSEMBLAGE ASSIGNMENT AND ASSUMPTION AGREEMENT Commissioner Warren recused himself from participation in Item A due to his previous ownership interest in the property. Motion: Commissioner Islam made a motion to approve the 223 rd Mullen-Warren Assignment and Assumption Agreement. Commissioner Shustov seconded the motion. The motion was approved 4-0, with Commissioner Warren abstaining. B. SAMMAMISH TOWN CENTER SE 4 TH WATER AND SEWER MAIN CONSULTANT AGREEMENT Motion: Commissioner Moran made a motion to approve the Sammamish Town Center SE 4 th Water and Sewer Main Consultant Agreement. Commissioner Shustov seconded the motion. The motion was unanimously approved. The Board discussed the necessity for advanced planning between the District and the City of Sammamish relative to the Sammamish Town Center project, as well as ensuring fair equity of costs associated with the development. Sammamish Plateau Water & Sewer District November 16, 2015 Page 2

12 12 C. MUELLER SYSTEMS, INC APPROVAL OF AMI CONTRACT Krauss explained the scope and time involved with the AMI project. Krauss recognized Jonas for his work on the AMI project. Krauss then provided an overview of the proposed Mueller Systems Inc. contract to the Board. Motion: Commissioner Moran made a motion to approve the Mueller Systems, Inc. Advanced Metering Infrastructure contract as presented. Commissioner Harman seconded the motion. The Board discussed the Mueller Systems, Inc. contract, including concerns with the contract details. There was Board consensus to hold a special meeting on Monday, November 23, 2015, to further discuss the Mueller Systems, Inc. contract details. Commissioner Moran then agreed to withdraw the motion. Motion: Commissioner Moran made a motion to schedule a special meeting on November 23, 2015, commencing at 4:00 p.m. at the District office, to discuss the Mueller Systems, Inc. contract details and to consider approval of the contract. Commissioner Harman seconded the motion. The motion was unanimously approved. Commissioner Harman requested an excused absence from the December 7, 2015 Board Meeting. Motion: Commissioner Shustov made a motion to excuse Commissioner Harman from the December 7, 2015 Board meeting. Commissioner Moran seconded the motion. The motion was unanimously approved. Commissioner Harman left the meeting at 6:27 p.m. D DRAFT BUDGET REVIEW Krauss reported a public hearing on the proposed 2016 Budget will be held during the regular Board meeting on December 14, 2015, commencing at 6:00 p.m. Commissioner Warren acknowledged staff for their work on the 2016 Draft Budget. E REVENUE RATE ADJUSTMENT REVIEW Krauss reported a public hearing on the proposed 2016 Revenue Rate Adjustments will also be held during the regular Board meeting on December 14, 2015, commencing at 6:00 p.m. F. EVERGREEN FORD DETAIL SHOP Regenstreif reported the Evergreen Ford Detail Shop property, located in the City of Issaquah, is outside of the District s sewer area. Regenstreif further reported the proposed project would require the extension of the District s gravity sewer main to serve the property. Regenstreif reported that Issaquah staff is aware of the project, however, it makes more sense for Evergreen to tie into the District s sewer main in order to receive District sewer service on a temporary basis until Issaquah can provide sewer service to the property. Motion: Commissioner Moran made a motion approving Resolution No. 4535, conditioned on the Sewer Availability Certificate including notice to Evergreen and conditioned on the District being able to obtain all necessary permits, including a right-of-way permit, from the City of Issaquah. Commissioner Islam seconded the motion. The motion was unanimously approved. Sammamish Plateau Water & Sewer District November 16, 2015 Page 3

13 13 ATTORNEY/MANAGER/COMMISSIONER REPORTS General Manager Reported on a joint meeting with Northeast Sammamish Sewer and Water District to be held on November 17, Commissioners Commissioner Shustov Reported on a recent meeting with a customer regarding sewer infill. Suggested that Commissioner Islam be kept advised of proposed regulations regarding Underground Injection Control. Reported on her attendance at a recent Metropolitan Water Pollution Abatement Advisory Committee meeting. Commissioner Moran Reported she will be unable to attend the Sammamish Chamber meeting on November 19, Commissioner Warren Reported CH2M Hill will be giving a presentation on hydroelectric power at the November 18, 2015 Cascade Water Alliance board meeting. ADJOURN As there were no further persons to be heard or business to discuss, the meeting was adjourned at 7:00 p.m. Mary Shustov, Secretary Sammamish Plateau Water & Sewer District November 16, 2015 Page 4

14 14 Consent Agenda Item D

15 15 Board President Lloyd Warren called the special joint meeting to order at 7:35 a.m. A quorum for Sammamish Plateau Water and Sewer District (District) was represented by Commissioners Lloyd Warren, Karen Moran, Mary Shustov, and Mahbubul Islam. A quorum for Northeast Sammamish Sewer and Water District (NESSWD) was represented by Commissioners Paul Sentena and Wayne DeMeester. Also present from NESSWD was General Manager Laura Keough. SPWSD staff present were Jay Krauss, Jay Regenstreif, Scott Jonas, Angel Barton, Tammy Whipple, Kyle Wong, and Paddy Moe. Commissioner Harman attended the meeting later as these minutes indicate. APPROVAL OF THE AGENDA Motion: Commissioner Moran made a motion approving the agenda as presented. Commissioner Islam seconded the motion. The motion carried unanimously. PUBLIC COMMENTS There were none. A. JOINT TANK AGREEMENT Krauss explained that, according to the joint tank agreement, an appointed representative from each utility should meet periodically to discuss related business. Both Boards reviewed upcoming costs associated with the joint tank. Krauss suggested a joint tank control committee. Commissioner Moran was assigned as Sammamish Plateau s designated representative to meet with NESSWD regarding the joint tank. Commissioner Harman attended the meeting at 7:43 a.m. B. GOVERNANCE AND SERVICE DELIVERY The Boards discussed governance and service delivery. BOARD OF COMMISSIONERS SAMMAMISH PLATEAU WATER & SEWER DISTRICT TH Ave. S.E., Sammamish, Washington Special Joint Meeting Minutes November 17, 2015 C. PHILOSOPHY ON CELLULAR LEASES Krauss provided an update on the current telecommunications rental contracts for the joint tank. Krauss explained that AT&T would like to add mass to the monopole. Krauss suggested a public hearing be held to inform rate payers about the proposed changes to the monopole. Krauss suggested parties from both Districts attend the hearing. There was consensus from both Boards to have a joint committee plan the public hearing. ADJOURN As there were no further persons to be heard or business to discuss, the meeting was adjourned at 9:10 a.m. Mary Shustov, Secretary Sammamish Plateau Water & Sewer District November 17, 2015 Page 1

16 16 Consent Agenda Item E

17 17 BOARD OF COMMISSIONERS SAMMAMISH PLATEAU WATER & SEWER DISTRICT TH Ave. S.E., Sammamish, Washington Special Meeting Minutes November 23, 2015 Board President Lloyd Warren called the special meeting to order at 4:02 p.m. A quorum represented by Commissioners Lloyd Warren, Tom Harman, Karen Moran, and Mahbubul Islam was present. Also present were District staff Jay Krauss, Jay Regenstreif, Jim Konigsfeld, Angel Barton, Kyle Wong, and Paddy Moe. Mary Shustov arrived at 4:10 p.m. APPROVAL OF THE AGENDA Motion: Commissioner Moran made a motion approving the agenda as presented. Commissioner Harman seconded the motion. The motion carried unanimously. PUBLIC COMMENTS There were none. CONSENT AGENDA Initial Acceptance Resolutions: Sunrise Senior Living Issaquah-Fall City Road Parcel Carrier SE 8 th Subdivision Parcels ; Motion: Commissioner Moran made a motion approving the consent agenda as presented. Commissioner Harman seconded the motion. The motion carried unanimously. A. TOUR OF DISTRICT FACILITY SITE EXPANSION Krauss and Konigsfeld provided the Board with a tour of the District s facility site expansion, located adjacent to the District s administrative building. B. UPDATE ON MUELLER SYSTEMS CONTRACT Warren reported on a meeting held last week with Warren, Krauss, Jonas, and legal counsel Eric Frimodt to review the Mueller Systems, Inc., contract. Warren further reported there will be some potential revisions, and the updated contract should be ready for approval in the coming weeks. EXECUTIVE SESSION RCW (1)(i) POTENTIAL LITIGATION No executive session was held. Krauss reported on recent discussions District staff, Warren, and Milne have had with City of Issaquah staff, Mayor Butler, and the City Attorney, regarding a franchise agreement. Krauss further reported there will be a status update at the next meeting. Sammamish Plateau Water & Sewer District November 23, 2015 Page 1

18 18 ATTORNEY/MANAGER/COMMISSIONER REPORTS General Manager Reported the District s water advisory has been lifted. Commissioners Commissioner Shustov Reported on her attendance at the WASWD Technology Committee meeting held on November 20, Commissioner Warren Reported on his attendance at a Cascade Water Alliance meeting held on November 18, ADJOURN As there were no further persons to be heard or business to discuss, the meeting was adjourned at 5:25 p.m. Mary Shustov, Secretary Sammamish Plateau Water & Sewer District November 23, 2015 Page 2

19 19 Consent Agenda Item F

20 20 SAMMAMISH PLATEAU WATER & SEWER DISTRICT KING COUNTY, WASHINGTON RESOLUTION NO. RESOLUTION OF THE BOARD OF COMMISSIONERS OF SAMMAMISH PLATEAU WATER AND SEWER DISTRICT, KING COUNTY, WASHINGTON, AUTHORIZING AND APPROVING THE APPLICATION FOR THE DEVELOPER EXTENSION AGREEMENT FOR THE OSGOOD SE 24 TH WAY PLAT WHEREAS, James Osgood has submitted an application to enter into a Developer Extension Agreement for service to a development known as OSGOOD SE 24 TH WAY PLAT; and WHEREAS, said party has submitted to the District Preliminary/Certificate of Availability Fee of WATER $15, SEWER $6, BE IT RESOLVED, by the Board of Commissioners of Sammamish Plateau Water & Sewer District, King County, Washington, as follows: 1. The District hereby approves the application and authorizes the execution of the Developer Extension Agreement referenced above. 2. The balance of the Preliminary/Certificate of Availability fees not yet paid as required by District resolution will be due within thirty (30) days of King County's, City of Sammamish s or City of Issaquah s approval of the first land use process/procedure for which the King County Certificates of Water and/or Sewer Availability were issued in connection with the execution of the Developer Extension Agreement or no later than at the time of initiation of the District s review of the design of the Developer Extension Agreement, whichever is sooner; and 3. In the event the General Facility Charges are not paid within said thirty (30) day period, interest shall accrue on the entire amount due at the rate of eight percent (8%) until the General Facility Charges and all accrued interest are paid in full; and 4. If King County Certificates of Water and/or Sewer Availability are not required for the project for which the water and/or sewer extension improvements are being installed, the General Facility Charges shall be paid Resolution No. Page 1 Tax Parcel ERUs Water and 12 ERUs Sewer

21 21 at the time of initiation of the District s review of the design of the Developer Extension Agreement, or within six months of the initiation of this Developer Extension Agreement, whichever comes first. ADOPTED by the Board of Commissioners of Sammamish Plateau Water and Sewer District, King County, Washington, at a regular open public meeting held on the 11th day of January Individual Commissioner s Vote on this Resolution: Approved: Opposed: Abstained: Absent: Approved: Opposed: Abstained: Absent: Approved: Opposed: Abstained: Absent: Approved: Opposed: Abstained: Absent: Approved: Opposed: Abstained: Absent: Lloyd Warren, President and Commissioner Karen Moran Vice President and Commissioner Mary Shustov, Secretary and Commissioner Tom Harman, Commissioner Mahbubul Islam, Commissioner Resolution No. Tax Parcel ERUs Water and 12 ERUs Sewer Page 2

22 22 EXHIBIT A REAL PROPERTY DEPICTION OSGOOD SE 24 TH WAY PLAT TAX PARCEL N REAL PROPERTY LOCATION Resolution No. Tax Parcel ERUs Water and 12 ERUs Sewer Page 3

23 Active Agenda 23

24 24 Active Agenda Item A AMI Customer Outreach Discussion

25 25 Summary of Major Milestones* Milestone Estimated Completion Date Estimated Duration Contract execution and issuance of purchase order (if needed) 11/30/15 0 weeks Shipment of network infrastructure for full system 12/31/ weeks Initial shipment of meters and radios for deployment 12/31/ weeks Installation of network infrastructure for full system 02/5/ weeks Commencement of full scale meter installation 02/8/ day Completion of meter installation 12/31/ months Completion of integration between Mi.Host data and: SCADA System, WonderWare Historian v2014 R2 TBD** GIS/ESRI v10.3 arch server advanced TBD** Innovyse InfoWater v12 TBD** Completion of Systems Acceptance 03/31/ weeks *NOTE: Based on the milestones above, Mueller Systems and the District will mutually develop a detailed project schedule and the Parties will acknowledge in writing their acceptance of the schedule. The project progress against the schedule will be discussed in the project management meetings and adjusted as needed and mutually agreed to in writing by Mueller Systems and the District. **NOTE: Completion date and duration for these activities will be determined after the integration scoping process defined in the Scope of Work is completed.

26 26 Active Agenda Item B Washington Association of Sewer and Water Districts (WASWD) Request to Review Senate Bill 6115 Utility Tax Discussion

27 Do You Favor Legislation Capping Utility Taxes at 6%? We need your input! 27 To Member Managers and Commissioners Dear WASWD Member: For many years our members debated the wisdom of making a trade with cities. The concept was to agree to granting cities the authority to impose a utility tax capped at 6% in exchange for the right of ratepayers to vote on any proposed assumption by a city. With the passage of our legislation last year that permits assumptions to be challenged through the referendum process, that trade is no longer on the table. However, the question whether we should seek legislation capping utility taxes at 6% is still with us. This is so because the Eastern Washington Court of Appeals in Wenatchee v. Chelan PUD held that cities already have the power under existing statutes to impose utility taxes in the form of a B & O tax on water sales. Technically the Wenatchee case is binding only in Eastern Washington, so there is debate among the lawyers representing water-sewer districts whether that decision would be followed if another test case went to the Washington Supreme Court. Some believe the doctrine of intergovernmental immunity or the lack of more express authority might lead to a finding that cities lack the power to tax districts. Others believe that the holding in the Wenatchee case would be affirmed. While the debate continues, one thing is certain: more cities are going to be passing ordinances imposing taxes on district services. As many of you know, the City of Des Moines has been considering adopting just such an ordinance. As originally written, the ordinance would have imposed a 16% (yes you read that correctly sixteen percent) utility tax on water and sewer revenue generated by districts within its boundaries. One of the districts that would be affected by such a taxing ordinance recently asked the WASWD Board of Directors to support SB 6115 which was introduced by Senator Chase at the end of the last

28 28 legislative session. This bill if it became law would limit any tax on water and sewer services provided within the city to 6%. Here is a link to that bill SB The Board declined to act on this request until it can get a sense of what the will of the membership is with regard to pursuing a cap. It must be recognized that such legislation effectively acknowledges that cities have the authority to impose a utility tax. Some members are not opposed to such a tax; others adamantly oppose agreeing to one. This is where you come in. Please respond to this and tell us whether you believe WASWD should support or oppose the concept of seeking a 6% cap on utility taxes on water and sewer revenue. The particulars as to which revenues would be taxable would have to be hashed out later. We are just trying to get a general sense of the will of the membership as to whether to seek to cap on taxes on your sales revenue. In addition, please tell us if this is your opinion as an individual or the official position of your district. All responses will be provided to the Government Relations Committee on January 14 and it will decide what recommendation it wants to make to the WASWD Board at its January meeting later in the month. Thanks for taking the time to respond and Happy New Year! -- Blair B. Burroughs Executive Director Washington Association of Sewer & Water Districts

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