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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Spokane County, Valley at odds over traffic roundabout

A spat between Spokane County and Spokane Valley over a controversial traffic roundabout has the two governments at legal odds.

It is the second time this year the county has been sued by a municipal government; the first was when the city of Spokane took the county to court last month over a campaign promise that property tax rates would not increase for some residents following the passage of a street levy.

The latest lawsuit centers on a roundabout built in 2008 at the intersection of Montgomery Drive, Wilbur Road and Mansfield Avenue. The dispute stems from an agreement first signed in April 2003, just a month after Spokane Valley incorporated as a city. Spokane Valley says that agreement for road projects puts the county on the hook for damages resulting from a civil lawsuit filed by the owner of a nearby apartment complex.

Steve Bartel, head risk manager for Spokane County, said he was disappointed by Spokane Valley’s decision to sue rather than attempt to settle the dispute out of court.

“It’s a shame that we’re finding out the city strongly believes that we should make some payment or reimbursement, without just contacting us first,” he said.

Spokane Valley City Attorney Cary Driskell declined to comment on specifics of the case, but said the dispute springs from a disagreement between the insurance companies representing Spokane Valley and Spokane County about who should cover the legal and settlement costs. The county’s risk pool would cover the legal costs, but taxpayers would eventually have to pay the risk pool back, Bartel said.

The owner of Montgomery Court Apartments, California real estate agent Jon Gibson, argued the roundabout made it unnecessarily difficult for residents traveling east on Montgomery to enter the complex north of the new intersection. He also argued, in a case that reached the Washington state Court of Appeals, that Spokane Valley reneged on its promise to cover costs for a new entrance after Gibson revoked an agreement to provide some of his land for the road in exchange for $69,000. The city said Gibson’s estimated cost for the new entrance far exceeded their expectations, totaling an amount just shy of $200,000.

Gibson said the city of Spokane Valley did not adequately warn him how the construction of the $3.1 million roundabout would affect traffic trying to enter his property. A private real estate appraisal of the property found it declined in value by about $1.3 million as a result of the construction, Gibson added.

Gibson said he was disappointed with Spokane Valley – not county – officials for the outcome.

“Frankly, I have no beef with the county,” Gibson said by phone Tuesday.

The appellate court judges awarded Gibson a trial on his breach-of-agreement claim. Spokane Valley settled the case earlier this year, reportedly paying Gibson $40,000. He said that amount didn’t even cover his legal costs.

Spokane Valley is seeking compensation from the county for the $40,000 and the five years of attorney’s costs associated with defending the case. Spokane Valley says an indemnity clause in the original 2003 agreement requires Spokane County to pay “any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever, by any reason of or arising out of any negligent act or omission” by county engineers. Spokane Valley says negotiations with Gibson for purchase of right-of-way were conducted exclusively by county employees.

Bartel, the county’s head risk manager, said the negotiations about design involved both county engineers and Spokane Valley officials, and Spokane Valley had final say on the design of the intersection.

The lawsuit was filed last Thursday. County Commissioners Todd Mielke and Shelly O’Quinn said Tuesday they were being briefed on the lawsuit, but it’s still early in the process and they did not comment on the allegations. None of the sitting county commissioners was in office when the original agreement was signed with Spokane Valley for road work.