21-050.01 Spokane County: Sewer Utility Tax Legal Fees MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SPOKANE
VALLEY AND SPOKANE COUNTY REGARDING LEGAL FEES FOR FOSTER
GARVEY PC LAW FIRM
WHEREAS, the City of Spokane Valley (City) and Spokane County (County) have been
advised by the City of Spokane (Spokane) that Spokane intends to impose its Wastewater Utility
Tax on the County-owned and operated wastewater treatment facility, Spokane County Regional
Water Reclamation Facility(SCRWRF), located in Spokane; and
WHEREAS,the majority of the waste water collection of the SCRWRF occurs within the City
and the potential resulting tax may, therefore, be paid by those residing in the City;
WHEREAS,elected leaders for both the City and County,as well as other municipalities,have
publicly objected to such action, and instructed staff for their respective entities to seek effective
ways to preclude the imposition of said sewer utility tax;
WHEREAS,the County has engaged the legal services of Stephen DiJulio, an attorney in the
law firm of Foster Garvey PC, who has extensive experience representing clients with municipal
utility and tax issues, to advise the County in this matter; and
WHEREAS, the City and the County have determined certain common legal interests exist in
this matter,and the City desires to assist in partial payment of legal costs associated in the County's
defense against the imposition of Spokane's Utility Tax in this matter; and
WHEREAS,the City and the County desire to enter into this Memorandum of Understanding
(MOU) to establish the mutually agreed terms to accomplish the goals set forth herein.
NOW, THEREFORE, the City and the County do hereby agree as follows:
ARTICLE 1 —GENERAL CONDITIONS
1.1 PURPOSE. To fund a portion of the County's legal costs in the Defense against the
imposition of Spokane's Utility Tax.
1.2 TERM. This MOU shall remain in effect until either December 31, 2024 or until the
conclusion of any resulting civil cause of action is concluded.
1.3 TERMINATION. Either party may terminate this MOU upon at least 15 days written
notice to the other Party.
1.4 COMPLIANCE WITH LAWS. Each Party shall comply with all applicable federal, state,
and local laws and regulations.
Page 1 of 3
1.5 INDEMNIFICATION. Each Party shall protect, defend, and hold each other, its agents,
officers, officials, and employees harmless and shall indemnify each other with respect to
this MOU.
1.6 NONDISCRIMINATION. No individual shall be excluded from participation in, denied
the benefit of, subjected to discrimination under, or denied employment in the
administration of or in connection with this MOU because of age, sex,race, color,religion,
creed, marital status, familial status, sexual orientation including gender expression or
gender identity, national origin, honorably discharged veteran or military status, the
presence of any sensory, mental or physical disability, or use of a service animal by a
person with disabilities.
1.7 ASSIGNMENT. No Party may assign any of their rights under this MOU to a third party.
1.8 MODIFICATION.No modification or amendment to this MOU shall be valid until the same
is reduced to writing and executed with the same formalities as this present MOU.
1.9 VENUE STIPULATION. This MOU has and shall be construed as having been made and
delivered in the State of Washington and the laws of the State of Washington shall be
applicable to its construction and enforcement. Any action at law, suit in equity or judicial
proceeding for the enforcement of this MOU of any provision hereto shall be instituted
only in the courts of competent jurisdiction within Spokane County, Washington.
1.10 WAIVER. No officer, employee, agent or otherwise of either Party has the power, right or
authority to waive any of the conditions or provisions to this MOU. No waiver of any
breach of this MOU shall be held to be a waiver of any other or subsequent breach. All
remedies afforded in this MOU or at law shall be taken and construed as cumulative, that
is, in addition to every other remedy provided herein or by law. Failure of either party to
enforce at any time any of the provisions of this MOU or to require at any time full and
complete performance by the other of any provision hereof, shall in no way be construed
to be a waiver of such provisions, nor in any way affect the validity of this MOU or any
part hereof, or the right of either party to hereafter enforce each and every such provision.
1.11 NOTICES.All notices required or permitted under this MOU shall be in writing and served
upon the Parties and directed to the mailing addresses set forth below or the mailing
addresses designated by a party pursuant to written notice, or by electronic mail to the
email address set forth below or the email address designated by a party pursuant to written
notice. Any notice so mailed shall be effective three days after mailing.
1.12 ENTIRE AGREEMENT. This MOU contains all the promises, agreements, conditions,
inducements and understandings between the parties relative to this MOU and there are no
promises, agreements, conditions, inducements, understandings, warranties or
representations, oral or written, expressed or implied,between them other than as set forth
herein.
Page 2 of 3
1.13 SEVERABILITY. If any portion of this MOU should become invalid or unenforceable,
the remainder of the MOU shall remain in full force and effect.
ARTICLE 2 - RESPONSIBILITIES OF THE COUNTY
2.1. The County shall maintain their Agreement with Foster Garvey PC for legal services
related to Spokane's attempt to impose a sewer utility tax on the County, and be the
responsible party for contract management.
2.2 The County shall send periodic invoices to the City for the City's share of the legal fees
incurred from Foster Garvey PC.
2.3 The County may, at its sole election, terminate its relationship with Foster Garvey PC at
any point regardless of the status of the litigation and without consultation with the City.
ARTICLE 3 —RESPONSIBILITIES OF THE CITY
3.1 The City shall pay 17% of the legal costs associated in the defense of the imposition of
Spokane's Utility Tax the County receives from Foster Garvey PC as its share of the legal
fees related to this matter. The City shall pay for such legal costs up to $15,000 unless
otherwise agreed in writing.
3.2 Upon receipt of an invoice from the County for legal fees from Foster Garvey PC,the City
shall pay the County for its share within 30 days.
The Parties have executed this Agreement this /7/11day of `*2023.
CITY OF SPOKANE VALLEY SPOKANE COUNTY
I c
C ty Manager By: Scott Simmons, Spokane County C �� `\
OF 00M /S\ 1i
r
M �
s,
si
of CMG•. 0y II
ATTEST: O h y.:,c M
VAjt I I • %. 1:44—-: ! • 5
i N SEAL . i
Ainna Vasquez,Clerk khe Boarc il 4:44, cot3t y=
— 0032
APPROVED AS TO FORM: OV D AS TO FO
t,
I V\ $._ VkA,4.e.....:0
Office the City orney S ane County Prosecuting Attorney's Office
Page 3 of 3
NO.23 - 0032
BEFORE THE BOARD OF COUNTY COMMISSIONERS
OF SPOKANE COUNTY, WASHINGTON
IN THE MATTER OF A MEMORANDUM )
OF UNDERSTANDING BETWEEN THE )
CITY OF SPOKANE VALLEY AND ) RESOLUTION
SPOKANE COUNTY FOR THE )
PAYMENT OF LEGAL FEES )
WHEREAS, pursuant to the Constitution and laws of the State of Washington, Spokane
County, Washington is a class A county duly organized and existing; and
WHEREAS, pursuant to the provisions of RCW 36.01.030, the powers of Spokane
County can only be exercised through the Board of County Commissioners of Spokane County,
Washington("Board" or"Board of County Commissioners"); and
WHEREAS, pursuant to the provisions of RCW 36.32.120(6), the Board of County
Commissioners has the care of county property and the management of County funds and
business and in the name of the County may prosecute and defend all actions for and against the
County; and
WHEREAS, pursuant to the provisions of chapter 39.34 RCW, the Board of County
Commissioners may exercise any power jointly with any other public agency of this State; and
WHEREAS, the City of Spokane Valley and the Spokane County are aligned and jointly
addressing the potential imposition of a Utility Tax upon the County by the City of Spokane; and
WHEREAS, the Board determined it was advantageous to the citizens of Spokane
County to enter into a Memorandum of Understanding ("MOU") between Spokane County and
the City of Spokane Valley for the payment of certain legal costs associated therewith; and
WHEREAS, the MOU will expire prior to the completion of any Defense involving the
Utility Tax and the Parties desire to extend the MOU.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of County
Commissioners of Spokane County, Washington, pursuant to the provisions of RCW
36.32.120(6) and chapter 39.34 RCW, that the Board does hereby approve the extension of the
MOU as presented and authorizes Scott Simmons, Spokane County CEO, to execute the MOU
on behalf of the County at other than an open meeting and when so executed is filed along with
this Resolution.
IT IS FURTHER RESOLVED that Scott Simmons, Spokane County CEO, is
Page 1 of 2
authorized to extend this MOU for two additional years, should it be warranted. Any execution
may be at other than an open meeting and without the necessity of bringing this matter before the
Board for further consideration.
PASSED AND ADOPTED this /7 th day of , 2023.
BOARD OF COUNTY COMMISSIONERS
h� OF SPOKANE COUNTY, WASHINGTON
OF GOMM, 41
,IrOt.•Qo E Cp4���* 0I
i m 1': ` • % Mary L. V
LA-147---
ATTEST: ,�I s SEAL '* ,:i
111, \`E cO01
(tot Josh Kerns, VICE-CHAIR
mna Vasquez
Clerk of the Board (-A t�1
Al French, C MMISSIONER
CbtAA}N., '10
Amber Waldref, COMMISSIONER
(2,1LA;c_Chris Jordan, COM SIONER
Page 2 of 2