Mayor Norm Childress called the regular meeting to order at 7:30 p.m. in the Council Chambers at City Hall.

Present were: Mayor Norm Childress and Councilmembers Helen Darr, Bill Flory, Pam Horner, Jan McDonald, Robert Morales, Javier Rodriguez and Joan Souders.

Staff present were: City Administrator Scott Staples, City Attorney Jack Maxwell and City Clerk Anita Palacios.

2. PLEDGE OF ALLEGIANCE

Mayor Childress led the pledge of allegiance.

3. PRESENTATIONS - None

4. PUBLIC COMMENT - None

5. CONSENT AGENDA

A. Minutes of the October 2, 2006 study session

B. Minutes of the October 2, 2006 regular meeting

C. Claim Warrant Nos. 77026-77154 in the amount of $165,719.04

D. Payroll Warrant Nos. 41630-41717 in the amount of $210,097.54 for October 15, 2006

E. Resolution No. 2006-21; Declared certain property surplus and authorized sale or disposition

6. ACTIVE AGENDA

A. Public Hearing CDBG Community Investment Fund Project Closeout

Received staff report and public comments

Senior Planner Michael Buchanan of the Yakima Valley Conference of Governments explained that the purpose of the public hearing was to review the completed Community Investment Fund projects consisting of the Wine Country Road landscaping, the stormwater retention basin and the Bethany Road rebuild. These projects assisted in locating the Wal-Mart Distribution Center in Grandview, which created a total of 600 jobs. The public hearing was meant to inform citizens of the State Community Development Block Grant (CDBG) funds investment in the public facilities to support economic development in Grandview and to receive comments on the activities, particularly from low- and moderate-income persons and persons residing in the Grandview area.

No public comments were received and the hearing was declared closed.

B. Ordinance No. 1765

Amended the 2006 Annual Budget

Ordinance No. 1765 was a late fiscal year amendment to the 2006 budget. It recognized the unanticipated revenues received during the year and the uses in excess of original appropriations. It also amended beginning and ending fund balances to reflect more accurately the actual and revised estimates.

The Current Expense Fund realized a level of tax, fee and fine revenues in excess of original estimates. The largest amended amount was the transfer of funds from the Street fund. In late 2005, due to late street project completion, anticipated grant funds were not received by the end of the year. The Current Expense fund transferred monies to cover the late grant receipts. This years transfer of $165,000 to the Current Expense fund was a return of some of those funds.

The Street Fund received the anticipated 2005 grant funds in early 2006. Of the $184,000 there was $165,000 being returned to Current Expense. The balance was being used to fund the removal of railroad tracks on North Birch and North Elm. Road and street maintenance, traffic control devices and roadside maintenance costs also would require expenditures greater than originally estimated.

The Capital Improvements Fund received Real Estate Excise Taxes in excess of original estimates. These, with a higher beginning fund balance and investment interest earnings would be reflected in a higher ending fund balance and funds available for capital expenditures in 2007.

The Irrigation fund amendments reflect changes in expenditures and fund balances. What might be considered "house keeping." The largest expenditure amendment was for the purchase of water from SVID. A $10,000 adjustment was necessary. Appropriations for expenditures were increased and the estimated ending balance was reduced.

The Garbage fund saw unanticipated expenses this year in both the collection and neighborhood cleanup programs. Tipping fees have far exceeded original estimates and the length of the neighborhood cleanup program lasted twice as long as anticipated. Combined, it increased anticipated expenditures by approximately $48,000.

In the Equipment Rental Fund, the amendments were to increase appropriations for the purchase of a replacement garbage truck and computer equipment. The truck bid exceeded original estimates and the computer replacement was not anticipated. The purchase of both these items was expected to occur this month. In both cases there were sufficient replacement/reserve funds accrued.

Staff recommended Council adopt Ordinance No. 1765 amending the 2006 annual budget.On motion by Councilmember Darr, second by Councilmember Souders, Council unanimously approved ORDINANCE NO. 1765 AMENDING THE 2006 ANNUAL BUDGET.

7. COUNCIL MEMBER MEETING REPORTS

AWC Regional Meeting - Mayor Childress, Councilmembers Morales, Souders and McDonald, along with City Administrator Staples attended the Association of Washington Cities (AWC) Regional Meeting on October 11^th in Yakima. The purpose of the meeting was to discuss changes to the AWC Legislative policy development process, possible Legislative proposals for the 2007 session, Statewide Initiatives 917 and 933, and challenges facing cities and towns in our area.

DRYVE Committee - Councilmember Souders attended the DRYVE (Driving Rural Yakima Valleys Economy) Committee meeting on October 12^th in Grandview.

8. UNFINISHED AND NEW BUSINESS

City Council Targets -

Consolidation of Parks & Public Works Maintenance - The Public Works Director and Parks & Recreation Director have submitted their comments on the pros and cons of maintenance consolidation. Those reports were reviewed by the Mayor and City Administrator in consultation with the two Department Heads. Additional information relating to potential cost reductions was requested and a further meeting would be held this week. A final report would be submitted for Council consideration at the November 6^th study session.

Court Consolidation - One final meeting between District Court and City representatives was scheduled for October 24^th. The focus of that meeting would be to discuss the methodology used to determine the cost the County would charge the City for court services. The methodology initially agreed to consisted of categorizing cases and assigning a value to the cases to determine the Citys caseload compared to the Countys caseload. Following discussion with the Administrator of the Courts in Olympia, it was determined that this type of methodology, which was popular ten years ago, was not recommended now and was viewed as out of date. In conversation with District Judge McCarthy, the District Court was considering some other approaches that they wanted to discuss. A final report would be submitted for Council consideration at the November 6^th study session.

School Resource Officer - Plans were underway to have an officer assigned to the Middle School by the first of November. Preliminary planning discussions were taking place with the Middle School Administration to ensure that everything would be ready to go on November 1^st.

Mayor Childress advised that he had received a letter from a resident on West Fifth Street who expressed concern with the littering along West Fifth Street associated with the students who are walking to the Westside Market during their lunch break. Staff was directed to contact the High School to request that they make announcements to the student body accordingly. Staff was also directed to review the location of garbage receptacles in the area.

Gang Dialogue - City and School District staff were organizing a gang awareness forum focused on parents of students in the School District to be held on November 20^th at the Middle School. The Parks & Recreation staff would be providing some programming for the students while the parents were attending the forum.

Water Rights Merger - The City Administrator and Public Works Director met with City Engineer Jeff Louman last week to discuss merger of water rights and reviewed a technical report on each of the wells. The engineer would be completing a written report with specific recommendations and strategies for Council consideration at a future meeting.

Graffiti Reward Program - At a previous meeting, Council discussed the graffiti reward program. Following that meeting, the City Attorney was directed to review the municipal code to determine what circumstances rewards would be issued, who would issue the rewards, etc. Upon his review, the City Attorney concluded that no amendments were necessary to the code. The municipal code adopts the State statute on rewards and then allows the Council to set by resolution the amount, duration and requirements to be met to claim the rewards. This should allow the Council the ability to consider not only conviction, but deferments. Under any event, it would be up to Council to approve a reward.

City Attorney Maxwell questioned whether or not the Council wanted to target only graffiti. He did not recommend that the City provide rewards for every crime committed in the City. Under the municipal code, the Police Chief could come before the Council and ask for a reward for a particular incident that lead to a conviction or deferment and it would be Councils discretion to approve or not.

Following discussion, the City Attorney was instructed to further review the code to determine whether or not any amendments were necessary.

9. EXECUTIVE SESSION - Sale of Real Estate and Collective Bargaining

Mayor Childress adjourned the meeting to an executive session at 8:15 p.m., for approximately 30 minutes to discuss sale of real estate and 30 minutes to discuss collective bargaining with the aforementioned Mayor, Councilmembers, City Attorney and City Administrator present. The executive session was extended an additional 30 minutes at 9:15 p.m. The meeting resumed at 9:45 p.m., with the aforementioned Mayor, Council and staff present.

10. SALE OF REAL ESTATE - 150 DIVISION STREET