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2008, 09-23 Regular Meeting MinutesMINUTES City of Spokane Valley City Council Regular Meeting Tuesday, September 23, 2008 Deputy Mayor Denenny called the meeting to order at 6:00 p.m., and welcomed everyone to the 145th meeting. Attendance: Dick Denenny, Deputy Mayor Rose Dempsey, Councilmember Bill Gothmann, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember Absent: Rich Munson, Mayor Diana Wilhite, Councilmember City Staff: Mike Jackson, Deputy City Manager Mike Connelly, City Attorney Mike Stone, Parks & Rec Director Ken Thompson, Finance Director Kathy McClung, Community Development Dir Rick VanLeuven, Police Chief Greg McCormick, Planning Manager Scott Kuhta, Senior Planner Neil Kersten, Public Works Director John Whitehead, Human Resources Manager Carolbelle Branch, Public Information Officer Bill Miller, IT Specialist Chris Bainbridge, City Clerk INVOCATION: Pastor Peter Gaydarzhi from God's Embassy Church gave the invocation. PLEDGE OF ALLEGIANCE: Councilmember Taylor led the Pledge of Allegiance. ROLL CALL: City Clerk Bainbridge called roll; all Councilmembers were present except Mayor Munson and Councilmember Wilhite. It was moved by Councilmember Taylor, seconded and unanimously agreed to excuse Mayor Munson and Councilmember Wilhite from tonight's meeting. APPROVAL OF AGENDA: It was moved by Councilmember Taylor, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: Deputy Mayor Denenny recognized the Boy Scouts from Troop 422, who were in attendance working on their "Citizenship in the Community" merit badge. COMMITTEE, BOARD, LIAISON SUMMARY REPORTS: Councilmember Gothmann: reported that he attended the September 11 dedication of Spokane Fire Station on Pines and 32 ; attended the Housing and Community Development Advisory Committee meeting where committee members determined that they will review all projects, even the infrastructure projects in Spokane Valley as part of the set -aside funding; attended the opening of the Spokane Valley Mall office of the Sheriff's office; mentioned the Community Forum and ten -year program for trying to eliminate homelessness; participated in the Valleyfest Parade and Valleyfest; and said that the Edgeclift Neighborhood Center will start to have a Meals on Wheels service from their Center. Councilmember Dempsey: stated that she attended the Community forum on Homelessness; the Spokane Homebuilders had an event whereby congratulations were given to four people who graduated from their apprentice program; she attended the Valleyfest parade; and this morning attended the Spokane East Central Neighborhood opening of Friendship Gardens, a senior low income housing area with 24 units. Council Regular Meeting: 09 -23 -08 Page 1 of 5 Approved by Council: 10 -14 -08 Councilmember Taylor: said he attended Valleyfest Parade. Councilmember Schimmels: reported he attended the Solid Waste meeting last week and that they invited Neil Kersten to attend the November meeting. Deputy Mayor Denenny: explained that he attended the STA (Spokane Transit Authority) Board meeting last Thursday; mentioned that sales tax revenues are being impacted even though the number of fares are growing and ridership has grown 18% this year; and reported that the Regional Health Board Executive meeting will be held next week, as well as the Solid Waste Advisory Committee. MAYOR'S REPORT: N/A PUBLIC COMMENTS: Deputy Mayor Denenny invited general public comment; no comments were offered. 1. CONSENT AGENDA: Consists of items considered routine which are approved as a group. A Councilmember may remove an item from the Consent Agenda to be considered separately. a. Approval of Claim Vouchers 15345 —15451 totaling $2,369,828.91 b. Payroll for pay period ending September 15, 2008: $236,280.61 c. Resolution 08 -018 Setting Planning Commission Street Vacation Hearing d. Resolution 08 -019 Database Administrator Position e. Approval of Council Study Session Meeting Minutes of September 2, 2008 f. Approval of Council Executive Session Meeting Minutes of September 16, 2008 It was moved by Councilmember Taylor, seconded and unanimously agreed to approve the consent agenda. NEW BUSINESS: 2. Second Reading proposed ordinance 08 -019 Tax Confirmation — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Taylor and seconded to approve Ordinance 08 -019 confirming the City's desire to levy a 6.39% increase in the property tax ordinance Finance Director Thompson explained that this is the second reading of this ordinance; that this represents an increase of $631,060 greater than the current year's budget; and explained that this doesn't really mean taxes are increasing 6.39% although that is possible; but that the 6.39% is our total tax increase over the prior year; and said that the tax rate per $1,000 of assessed value will not increase and will likely be 1.49 %. Deputy Mayor Denenny invited public comment; no comments were offered. Vote by Acclamation: In Favor Unanimous. Opposed: None. Abstentions:. None. Motion carried. 3. Second Reading Proposed Ordinance 08 -020 Property Tax — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Taylor and seconded to approve Ordinance 08 -020 to levy the property tax for the 2009 budget.. Finance Director Thompson explained that as with the prior ordinance, we are required by law to pass an ordinance in order to levy property taxes; and said are expect to collect $10.5 million. Deputy Mayor Denenny invited public comments; none were offered. Vote by Acclamation: In Favor Unanimous. Opposed: None. Abstentions:. None. Motion carried. 4. Proposed Resolution 08 -020 Flex Time Pilot Program — John Whitehead After City Clerk Bainbridge read the Resolution title, it was moved by Councilmember Taylor and seconded, to approve Resolution 08 -020, Pilot Flex Time Proposal. Human Resources Manager Whitehead explained that as mentioned previously, this would be a pilot program for non - represented employees; and explained that the resolution authorizes flex schedules for employees by using a 4 /10's, 9./80's, or shadow schedule; and he further mentioned that those schedules will not affect the Monday Council Regular Meeting: 09 -23 -08 Page 2 of 5 Approved by Council: 10 -14 -08 through Friday, 8:00 a.m. to 5:00 p.m. City Hall schedule. Deputy Mayor Denenny invited public comment, none were offered. Vote by Acclamation: In Favor Unanimous. Opposed: None. Abstentions:. None. Motion carried. PUBLIC COMMENTS: Deputy Mayor Denenny invited general public comment; no comments were offered. ADMINISTRATIVE REPORTS: 5. Fee Resolution Discussion — Ken Thompson Finance Director Thompson said that there will be some proposed changes to the current fee resolution, a copy of which is included in council's packet; and that some changes will be changes to existing fees, some will include new fees; said that the organization of the fee resolution will be changed to make finding certain fees easier; and that a cost of living increase will be reflected on all fees; and said that most fees have not changed since 2003. There was brief mention of the need to recover direct costs, justifying a cost of living increase on fees, and of Council's desire to remain competitive and in line with other jurisdictions, such as Spokane City and Spokane County. 6. Community Development Block Grant (CDBG) Overview — Greg McCormick Planning Manager McCormick said we are preparing for the 2009 CDBG process; that the County will receive an estimated $1.5 million which will result in a 20% set aside for our City's capital projects; and mentioned the preliminary list of projects including full width paving with the Clement Sewer Project; various street projects to include ADA improvements; and a self - assessment study of ADA compliance. Mr. McCormick added that although we have a set aside amount, we are still required to hold a public hearing and such is scheduled for October 14, 2008. As mentioned earlier, the County Committee will review these projects, and will review the City's projects as the set aside funds does not change that procedure; and also that the Committee has no authority to recommend allocations or approve the projects. DELIBERATION: 7. Sprague /Appleway Revitalization Plan, Book II: Development Regulations — Scott Kuhta Prior to deliberation, Council decided to hold future deliberations much like those held for comp plan and UDC deliberations, by setting up the tables on the floor rather than sitting at the dais, thereby giving more room to spread out the documents to tackle this Plan in more of a workshop style. Senior Planner Kuhta brought attention to the map which shows the entire proposed corridor, and mentioned there are extra copies on the counter for the public. Mr. Kuhta also mentioned the enclosed September 16, 2008 memorandum regarding cost estimates for Sprague and Appleway, and said this shows how that $42 million breaks down through the four stages, with the Stage 1 two -way conversion intersection enhancement total of approximately $5.3 million; Stage 2 extension of Appleway from University to Evergreen reducing Sprague from seven to five lanes at approximately $16.3 million; Stage 3 two -way conversion with curbs, sidewalks and landscaping at approximately $6.7 million; and Stage 4 the completion of the system by extending Appleway from Evergreen to Tschirley and converting Sprague from seven to five lanes between Sullivan and Evergreen, at approximately $13.5 million. Mr. Kuhta said that Stage 2 in terms of engineering and design, is what was proposed next when the County was working on that area. There was brief discussion of the Memorandum; mention that there are items specific to the City Center such as changes to sidewalks for pedestrians crossing Sprague and Appleway; and that $3.4 million of all the road enhancements include wider sidewalks, separated walking paths, street trees, landscaping, street lights, and general street scaping. Councilmember Gothmann also mentioned the Planning Commission Minority Report to reverse the streets in stage 3 and 4, and having nothing to do with Thierman to Argonne until Appleway is extended all the way to Sullivan. Mr. Kuhta then brought Council's attention Council Regular Meeting: 09 -23 -08 Page 3 of 5 Approved by Council: 10 -14 -08 to the district zoned boundary map and explained how it was constructed; and mentioned that the blue area has a restriction on ground level auto sales allowing car lots only on ground levels, and suggested this section might be something for later Council consideration to make the regulations more precise, adding that he is aware that are such things as second floor showrooms; and Mr. Kuhta explained the difference from the original boundary lines compared with the proposed Planning Commission recommendations. Councilmember Gothmann mentioned that there were eighteen people who commented regarding change of zoning, and he recommends going through each comment. Mr. Kuhta said some of the suggested changes are a judgment call and open for council discussion; and mentioned that regarding comments from people on Hodges, that Hodges is not included on the Plan; and said that Council may want to review the suggested changes and deliberate when there is a full council. Councilmember Taylor mentioned that when Council gets to the section on pre - located streets, he would like to devote some time to discuss that; and Mr. Connelly added that Council will also want to keep in mind if they are trying to establish future acquisition areas, expanded setbacks, there will need to be specificity located in the development regulations; as the more specific, the easier it will be to protect them from being built upon. Generally speaking, Councilmember Taylor asked if Council preferred having a philosophical discussion or to take each section at a time, and Deputy Mayor Denenny voiced his preference to start with the philosophical discussion to define the area to work with before getting into the specifics. Councilmember Gothmann added that he was surprised when going through the comments, that some voice preference for transit, some say the rents are too low, there was one comment on the architectural standards, some dealt with changing in zoning, two objected to the 20% rule, two were concerned about block size, one with block access; and six didn't like the City Center or wanted it located at Mirabeau; but not many areas in the Plan were commented on. Mr. Kuhta suggested taking the Plan one section at a time to make organizational sense of the Plan, and that perhaps having aerial views will assist in deliberations with the district zone boundaries; and further suggested saving the map changes to the end of Book 2, but to start by going through the regulations. Mr. Connelly added that since there is not a full council present tonight, it might be more beneficial to wait to make specific verbiage changes. Other comments included mention by Councilmember Taylor that many comments favored taking care of the City Center and leaving the remainder of Sprague alone, but said that cannot be addressed without addressing zoning all along Sprague as eventually is it all tied together; and he would like discussion and explanation of what are the pros and cons of moving through the entire length, or stopping at Pines or Evergreen. Mr. Kuhta said it was never intended to be just a plan for City Center; but is a plan to help reverse the economic decline of the corridor, help struggling properties, and of a strong desire to locate a city center somewhere in the corridor, and a priority of Council is to get the City Center going. Councilmember Gothmann mentioned that Echo Northwest statistics show in the suburban area, we have 40% of the commercial area and 60% of the vacancies, and our rates of leasing are between $.50 and $2.00 per square foot less than other parts of the county. Deputy Mayor Denenny stated that the desire is to have zonings that will help the reinvestments; and said the closer to the corridor the higher the impact will be on reinvestment and increased values; which Mr. Kuhta said is a judgment call and stated that what occurs on one end will affect the other, and the question remains how far out to plan, or trim back; whether to consider implementing as funding is available; that there are pros and cons to the layout options, and staff can work on alternatives showing pros and cons; that there were many comments regarding existing uses and expansion of uses or making current uses nonconforming; that the 20% rule could be changed to 50 %; or change the underlying zone by making nonconforming uses conforming; and that these are options for Council to consider. City Attorney Connelly added that the existing code allows expansion but the new plan does not, and perhaps language could be adopted regarding existing businesses to both exist and expand. Councilmember Taylor said he is in favor of examining that option. Councilmember Schimmels suggested having an exhaustive examination of the district zones on the map regarding what can or can't be done, of the need to set up priorities, sort through it piece by piece, then Council Regular Meeting: 09 -23 -08 Page 4 of 5 Approved by Council: 10 -14 -08 move on. Mr. Kuhta said another option would be to allow a developer to choose the code they want to develop under, and mentioned the Valley Chamber's presentation showing the details allowing more development potential, and said this code is better then the existing code. Councilmember Taylor said anything built today will likely be around twenty to thirty years, and he would like the pros and cons if we don't extend this, if the plan stops east of Evergreen; that perhaps Appleway wouldn't be expanded for another ten to twelve years, that businesses can be sold or inherited and continue on, but new development and expansion should fall under the new code; and said that as the City Center develops with more walkable areas, people will be drawn to it and we will see a revitalized corridor, much like the revitalization of downtown Spokane. Councilmember Dempsey mentioned Deputy Mayor Denenny's previous use of the word "force" as in forcing people in this area who don't want to be forced, and said we need to work with people and find a way to work on this if things were eased up a little; that she would like to see options, that this needs to happen but she is concerned with the timeline to make people conform now rather than easing into it. Deputy Mayor Denenny qualified that by "force" he meant that people cannot do whatever they want to their property as some changes would change the nature of a neighborhood and diminish the value of the area, that for example one could not put a wrecking yard in a residential area; and that the regulations need to be in place for the use of properties for the common good. Councilmember Gothmann added that the problem is how to encourage change, and increase the value of properties while simultaneously allowing others to freely operate. Further discussion centered on doing the plan piecemeal, or moving ahead with the entire plan; what are the costs involved; mention that buildings will not have to be moved to be in compliance with the new regulations; whether to implement fully or in stages and the associated pros and cons; are new standards too large to place on existing businesses; how will new standards affect prospective businesses; what uses are allowed for what businesses, and do the uses meet the goals of the plan; market fluctuations; the idea of paying for direct improvements within five years from building date; tying this into the six -year improvement plan; applicability (specifically page 1 of 8 under 2.0.1 and how to determine the 20% threshold); to have staff bring the nonconforming ordinance to the next session to see how what we have works and compare to this plan; guidelines and recommendations versus mandatory language; and that there was no Council objection to continue with the scope of the plan as presented, but to amend uses or percentages, and to proceed through the plan one section at a time. INFORMATION ONLY: The Department Reports were for information only and were not reported on or discussed. There being no further business, Deputy Mayor Denenny adjourned the meeting at 8:02 p.m. ATTES Christine Bainbridge, " ity Clerk Council Regular Meeting: 09 -23 -08 Approved by Council: 10 -14 -08 Dick Denenny, 1 eputy Mayor Page 5 of 5