The 10-member King County boundary review board got more than an earful over two nights of testimony from the City of Issaquah, the City of Sammamish, a senior policy analyst for the county, the Sammamish Plateau Water and Sewer district plus a plethora of community groups and individual citizens regarding the annexation of the Klahanie PAA to Issaquah.

The BRB is a quasi-judicial body which makes decisions on incorporations, annexations, mergers and disincorporations by cities, towns, and sewer, water and fire districts. Whatever outcome the BRB decides is final, unless appealed to the King County Superior Court.

The meeting room at the Issaquah Holiday Inn was packed both nights. The City of Issaquah was allowed to make its case first. Mayor Ava Frisinger took the lead outlining some of the history. Klahanie and surrounding neighborhoods, were identified as an Issaquah potential annexation area in 1995.

“We are a sustainable city with a long history,” Frisinger said. “We are a city of annexations.”

Since its incorporation in 1892, which began with just the old town center, Issaquah has annexed all the rest of the areas in its borders. Frisinger said this annexation is the most densely populated one it has undertaken. Bob Harrison, the city administrator took over the presentation, stating that the proposed annexation meets the spirit of the city’s comprehensive growth plan. He said the 1973 comprehensive plan identified the PAA in Issaquah’s long-term planning. He brought up the success of the Issaquah Highlands, and pointed out that the city will provide enhanced services, including improving roads, parks and human services.

He reiterated what the Nesbitt study said, that Klahanie residents will pay $383 less in property taxes on an average single-family residence assessed at $320,000. The Nesbitt study was a financial analysis by an independent consultant.

BRB chair-elect, Paul MacCready of Seattle, asked Harrison about taking over utilities in the future — a major hot button in this issue. Harrison said no action has been taken on an assumption of water and sewer serviced in the PAA, which is served by the Sammamish Plateau Water and Sewer District (SPWSD). City finance director, Diane Marcotte said the city has not looked at the numbers yet if they were to assume the water and sewer service, so they could not answer questions about any potential water and sewer levies.

BRB board member Evangeline Anderson of Bellevue asked what a water bill would look like if Issaquah assumed the water service. Sheldon Lynne, Issaquah’s public works engineering director said the assumption study hasn’t even been discussed with the city council, but the study will address how to separate those utilities. It has been Issaquah’s stance all along that there will be no change; water and sewer would still be provided by SPWSD, however Issaquah’s policy is to provide direct retail water and sewer services to all customers within its limits. Lynne said previously that the assumption study would not even be presented to the Issaquah City council until after the first of the year. He said utilities are a non-profit, with a budget separate from the city budget. A utility assumption would also have to be presented to the BRB for approval.

Frisinger said the assumption study, completed this year, only includes areas served by Bellevue and areas served by SPWSD that are already in Issaquah’s borders. She said the council didn’t want to include utility issues or an assumption in the Nesbitt study because they didn’t know what the outcome of the Nesbitt study would be.

“Those assumptions are a separate process,” she said.

Jay Krauss, the general manager of SPWSD testified that the district, which has been in existence since 1948, currently serving 54,000 people, was formed in partnership with the developer of Klahanie.

“The district’s services were designed specifically for Klahanie,” Krauss said. “Issaquah has an expressed policy of providing utilities to annexation areas. The city’s plan is undeniable — they intend to take over the water and sewer.”

He said such a takeover would have profound consequences on customers and the district. Currently the percentage of all of the district’s water connections that are in Klahanie is 18.5 percent, and the percentage of all of the district’s sewer connections in Klahanie is 30.4 percent, which would be a huge hit to the district. Krauss said the current assumption study enters into an agreement with RH Engineering to assume parts of SPWSD in Issaquah now, serviced by other districts as a result of previous annexations. Krauss said the district wants the annexation proposal to go back to Issaquah so it can make its intentions clear about water and sewer.

BRB chair, Mary Lynne Evans of Seattle asked Krauss and Scott Jonas, the district’s operations manager if they were satisfied with the protection of their wells (that are inside Issaquah’s City limits). Krauss said “absolutely not.”

That in itself, is another issue.

Sammamish was represented by Mayor Tom Odell and city council members Don Gerend and Ramiro Valderrama.

“We have a great deal of difficulty with this process because the PAA has never been adjusted to reflect city incorporation in 1999,” Odell said. “Much has changed over the years — many of the residents of the PAA and Sammamish weren’t even here at the time of the last vote (to annex to Issaquah).”

Odell also pointed out the geography of the area. Most of Klahanie abuts Sammamish. It was echoed by many, that Sammamish and Klahanie consider that they are residents of the Plateau.

Karen Wolf, senior policy analyst with King County said Sammamish, if it chose to do so, could amend its city comprehensive plan to designate the PAA as its annexation area, then approach the Growth Management Planning Council to amend the county-wide planning policy to designate the area as Sammamish’s annexation area on the official annexation area map. However, the two cities cannot overlap.

“They both can’t designate it as their PAA in the official King County-wide planning policy,” Wolf said. “The growth management planning council could say to Issaquah you had your chance, but that would be unprecedented,” Wolf said.

A failed vote to annex into Issaquah is not considered a removal of the PAA from Issaquah’s comp plan — Issaquah would have to amend the plan to remove the PAA. Wolf said it was the analysis of the county that the annexation is within the goals of the growth management act and that it is consistent as an urban growth area.

“Might you have been thinking about getting your feet on the ground before?” BRB member Anderson asked of Sammamish, wondering why it didn’t pursue adding Klahanie to its PAA before.

Odell said they didn’t take action in 2002 because they were busy building a new city.

Then there is the conversation about police and fire. Lee Soptich, the fire chief for Eastside Fire and Rescue, explained to the BRB that EFR, which began in 1999, was created through an interlocal agreement between North Bend, Sammamish, Issaquah, King County and Washington Fire Districts 10 and 38. He said the directors of EFR have not take a position on the annexation because two of its partners are involved. Noting that the interlocal agreement expires at the end of 2014, any one of the partners can give notice to withdraw at the beginning of 2014.

As previously reported in this paper, Sammamish is unhappy with the business arrangement with EFR because it’s based on assessed valuation, not calls. David Kappler of Issaquah, who is against the annexation, is a former Issaquah City Council member. He has studied the EFR formula well.

“This annexation would partially remove the tax base of a very active special purpose district and replaces only a small percent of the much needed revenue,” Kappler said.

He said the district collects about $2,150,000 per year from the residents of Klahanie. He said if Klahanie is annexed to Issaquah or Sammamish, EFR will lose approximately $1,300,000 in net revenue per year which would have to be made up through increased charges to the rest of the district, reduction in district costs, increased payments from EFR partners or some of each.

“Sammamish believes they are overpaying EFR and is giving serious consideration to leaving the partnership,” Kappler said. “This in not an idle threat on their part. Sammamish owns three stations and 40 percent of the rolling stock now used by EFR.”

Kappler provided an exhibit showing that a home assessed at $450,000 in Klahanie would pay $791.95 in fire tax compared to $286.20 on a home of the same value home in Issaquah should annexation occur.

“I checked 10 different properties up there (Klahanie) and no one has challenged my numbers,” Kappler said.

Gerend also brought up the fact that no one seems to have the money to widen Issaquah-Fall City Road, but Sammamish has the ability to do so, right now.

Kirsten O’Malley, representing “Klahanie Choice,” said the residents of Klahanie are of a more similar demographic to the people in Sammamish. “We’re both suburban on the plateau,” she said. “Klahanie is a planned development.”

The group hired attorney Rick Aramburu whose testimony drew the ire of one Klahanie resident in particular. Aramburu said Issaquah has not committed to zoning, a concern of the group. Issaquah City Council will decide on zoning at its Oct. 7 meeting but the BRB will not meet to publicly deliberate until Oct. 10, with final decision anticipated in Nov.

He suggested the board reject the annexation proposal to allow Sammamish to make its proposal.

“Let them put up or shut up and if they don’t then Issaquah can come back. The competition between the two municipalities must be resolved, Aramburu said.”

Frisinger had the last word.

“Let the voters of the PAA decide,” she said.

Issaquah city administrator, Bob Harrison, makes his presentation at the Boundary Review Board meetings.

Sammamish Mayor Tom Odell gives his presentation on behalf of Sammamish at the Boundary Review Board meetings held last week at the Issaquah Holiday Inn.