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2007, 10-09 Regular Meeting MinutesMINUTES City of Spokane Valley City Council Regular Meeting Tuesday, October 9, 2007 Mayor Wilhite called the meeting to order at 6:00 p.m., and welcomed everyone to the 125 meeting. Attendance: Diana Wilhite, Mayor Steve Taylor, Deputy Mayor Dick Denenny, Councilmember Bill Gothmann, Councilmember Mike DeVleming, Councilmember Gary Schimmels, Councilmember Absent: Rich Munson, Councilmember City Staff: PLEDGE OF ALLEGIANCE: Mayor Wilhite led the Pledge of Allegiance. Nina Regor, Deputy City Manager Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Greg McCormick, Planning Manager Scott Kuhta, Senior Planner Kathy McClung, Community Development Dir Neil Kersten, Public Works Director Rick VanLeuven, Police Chief Carolbelle Branch, Public Information Officer Brian Moat, Facilities Maintenance Worker Carol Carter, Customer Relations Coordinator Chris Bainbridge, City Clerk INVOCATION: Father Shanbour from Christ the Savior Orthodox Christian Church gave the invocation. ROLL CALL: City Clerk Bainbridge called roll; all Councilmembers were present except Councilmember Munson. It was moved by Councilmember Gothmann, seconded, and unanimously agreed to excuse Councilmember Munson from tonight's meeting. APPROVAL OF AGENDA: It was moved by Deputy Mayor Taylor, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: n/a COMMITTEE, BOARD, LIAISON SUMMARY REPORTS: Other than Councilmember Gothmann's brief report concerning the Edgecliff Neighborhood Center, there were no reports. MAYOR'S REPORT: Mayor Wilhite reported that she attended the Edgecliff Neighborhood Center celebration, a reception at WSU for their new Dean of Nursing; a convention in Spokane for the Washington State Library Association, and a reception for potential buyers of Deaconess and Valley Hospital. PUBLIC COMMENTS: Mayor Wilhite invited public comments; no comments were offered. 1. PUBLIC HEARING: Proposed 2008 Budget — Ken Thompson Mayor Wilhite opened the public hearing at 6:09 p.m. and invited Finance Director Thompson to the podium. Mr. Thompson explained that this is the last public hearing on the 2008 budget, and via his PowerPoint presentation, gave a brief overview of the 2008 proposed budget; adding that the first reading of the ordinance to adopt the budget is scheduled later on tonight's agenda. Mayor Wilhite invited public comments; no comments were offered and Mayor Wilhite closed the public hearing at 6:15 p.m. Council Regular Meeting: 10 -09 -07 Page 1 of 8 Approved by Council: 10 -23 -07 VOUCHER LIST DATE VOUCHER #s TOTAL VOUCHER AMOUNT 09 -28 -2007 12838; 12846 -12939 $1,594,659.84 2. PUBLIC HEARING: Community Development Block Grant (CDBG) Project List — Greg McCormick Mayor Wilhite opened the public hearing at 6:15:30, and welcomed Mr. McCormick to the podium. Planning Manager McCormick explained that this is an opportunity for public comments on the proposed CDBG projects; and he gave estimates for the Rockwell and Summerfield Sewer Projects of $390,000 and $443,000 respectively, and explained that they have narrowed the sidewalk projects to include the area on Sprague from University to Sullivan, which would include accessibility ramps at the intersections for a total potential project of $909,038. Councilmember Gothmann mentioned the sewer projects are expensive and asked if it would be possible to split those projects in half. Mr. McCormick said that would be problematic in determining the logistics of doing such a split, and that he could speak with staff in Public Works to determine how such split might be feasible. Mayor Wilhite invited public comments, and no comments were offered and Mayor Wilhite closed the public hearing at 6:21 p.m. 3. 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. Following Claim Vouchers: b. Payroll for Period Ending September 30: $267,961.37 c. Minutes from Regular Council Meeting of September 25, 2007 d. Approval of Capital Improvement Program (CIP) Organizational Model It was moved by Deputy Mayor Taylor, seconded, and unanimously agreed to approve the Consent Agenda as presented. Mayor Wilhite asked Mr. Brown if he would like to comment now since he missed the first opportunity. N.A. Brown, 18915 E Marietta, Mr. Brown reported that he continues to experience junk tires, cars, and lumber on property nearby his property; and Mayor Wilhite said she will have staff look into the problem, NEW BUSINESS: 4. First Reading Proposed Ordinance 07 -016 Repealing UR -1 Ordinances (suspend rule) — Mike Connelly After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Taylor and seconded to suspend the rules and approve ordinance 07 -016. Deputy City Attorney Driskell explained that since the recent adoption of the Uniform Development Code, the ordinances establishing the Urban Estate interim zoning are no longer necessary and have become moot. Mayor Wilhite invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 5. First Reading Proposed Ordinance 07 -017 Amending Ordinance 07 -017, Shannon Avenue Street Vacation — Karen Kendall After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Taylor and seconded, to suspend the rules and approve ordinance 07 -017. Planning Manager McCormick explained that this is the same information which was presented to Council last week as an administrative report; and there have been no changes since that draft ordinance. Mayor Wilhite invited public comments; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 6. First Reading Proposed Ordinance 07 -018 Adopting Budget — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Taylor and seconded to advance ordinance 07 -018 to a second reading. Finance Director Thompson explained that this is the ordinance which will adopt the 2008 budget; that Council has now held three public hearings, and has Council Regular Meeting: 10 -09 -07 Page 2 of 8 Approved by Council: 10 -23 -07 posted several notices about the process, and that the funds are enumerated in the ordinance. Mayor Wilhite invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 7. First Reading Proposed Ordinance 07 -019 Levying Property Tax — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Taylor and seconded to advance ordinance 07 -019 to a second reading. Finance Director Thompson explained that there is a maximum of $3.60 per thousand dollars of assessed value that the City can impose; and that the City considered levying $1.60; but that a review of City budget needs and the increase in assessed value now indicates that the City levy will be closer to $1.55 per thousand dollars of assessed value; but the actual rate will not be known until January 2008 when final assessed value calculations are available. Mayor Wilhite invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 8. First Reading Proposed Ordinance 07 -020 Confirming Excess Property Tax — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Gothmann and seconded to advance ordinance 07 -020 to a second reading. Finance Director Thompson said that state law requires a separate ordinance to recognize that we would like to have the extra 1% each year, which is already included in our budget numbers; and added that this amount will likely be amended at the second reading to include those dollar amounts in the property tax. Mayor Wilhite invited public comments. No comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 9. First Reading Proposed Ordinance 07 -021 Appleway Auto Group- Greg McCormick /Mike Basinger After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Taylor and seconded, to advance ordinance 07 -021 to a second reading. Associate Planner Mike Basinger explained that per the previous council meeting, he spoke with Mr. Von Jones, General Manager of AutoNation, and with Gus Johnson Ford; that Mr. Jones said he was interested in having further discussion with the City prior to a second reading; that in reference to prior mention of the catch basin, which is the stormwater facility at the other end, it is actually outside the staff recommended proposed extension of Sipple if it did go through; but is a catch basin for stormwater within Gus Johnson Ford and Appleway's parking lots, and is pumped across the street south of Appleway. Extending Sipple, Mr. Basinger said is physically possible. Mayor Wilhite invited public comment. Mr. F.J. Dullanty, 412 West Riverside, representing AutoNation and Gus Johnson Ford; stated he is one the one who filed the application for that vacation on their behalf. He said that this is the first he's heard of any discussion between his clients and Mr. Basinger and he had no clue that that happened today; up until an hour ago, it was made clear to him that the Sipple extension was something that would be a real problem and would probably kill their ability to go forward because the two clients have an issue with Sipple and the spacing between the two buildings; that this issue was the subject of two public hearings at the Planning Commission level, and ultimately the Planning Commission made the finding that they felt it would be a safety issue, also given that AutoNation was not interested in extending Sipple. Mr. Dullanty said before the second reading, he would be willing to discuss this further with staff; but at this point it is an issue that he has been advised is not one that is acceptable to AutoNation and Gus Johnson Ford. He further said that he did not want to come across at the public hearing process as having made any kind of threat and that is not the intent of AutoNation; but some statements were made that if AutoNation cannot get the vacation and remodel it wants to do, it would have to move Appleway Toyota to another location. He also said that AutoNation is under the direction of the Toyota company and are under a temporary franchise and have been told the remodeling must occur in such a manner; and that such remodeling will result in a nicely designed, well - landscaped facility; but that the Toyota Company said that if they can't do this, the choices for AutoNation are to give up the franchise, which they do not want to do as Toyota is Council Regular Meeting: 10 -09 -07 Page 3 of 8 Approved by Council: 10 -23 -07 one of the largest and most profitable franchises in the United States; or they can move to another location, such as Liberty Lake or Post Falls, Idaho which areas would welcome those types of franchises. He said that Appleway Toyota provides $6 million dollars annually in sales tax revenue; of which $1.5 million goes to the City; and that budgeting must play an important role; so we would like to see what we can do together. Mr. Dullanty also mentioned that today's proposed ordinance contains a requirement which was never discussed or talked about and is new to them, e.g. that the Appleway Group, and Gus Johnson are required to pay up to 50% of the fair market value of the assessed value of that particular property. He said he realizes that is a state law which allows cities to impose that, but if that had been known to them at the time of the application, that would have been taken into consideration; but the City did not have an ordinance in place allowing them to do that; and that his application pre -dated the ordinance. Mr. Dullanty said he has not discussed this with his client and does not know what that might cost, but estimates that at $5.00 to $10.00 per acre, and at 22,500 feet including the right -of -way and Sipple, that would be a substantial amount of money that his client needs to have an understanding and address before they can comment on; and he re- stated that if the ordinance was not in effect at the time of their application, it would not be applicable to their situation. Mr. Dullanty concluded by stating that they would like an opportunity to discuss these issues with staff and he will also discuss these issues with his clients. Deputy City Attorney Driskell said that staff will check to determine if the ordinance was adopted prior to application being made; and that he and Mr. Dullanty spoke prior to tonight's meeting and will discuss these issues again as soon as possible. Sean Lumsden, 727 West Garland, Spokane: said that he represents auto row as an advertising collective, and has been very involved in this process from the beginning; and that he would like to confirm everything that Mr. Dullanty said, especially regarding the temporary license that Appleway has with Toyota; that Toyota determines who gets a franchise, and this is an issue of Toyota telling the franchisee what it will take to maintain the franchise; and that the main reason Appleway needs to expand is that they are running out of space on a monthly basis; and said that Sipple is very narrow with two businesses using it as a way to enter and exit service bays; that Sipple is not used by the public and is not maintained by the City and only has access to the two pieces of property that are making the petition. Mr. Lumsden said that he supports the findings of the Planning Commission; and that this is an opportunity for the top brand in the Country, which is the biggest selling auto dealer in the City and probably the biggest tax generator in the City, to expand its facility, have a world -class location, and continue to bring people into Spokane Valley to purchase cars. Mayor Wilhite invited further public comment and no further comments were offered. In council discussion, Deputy Mayor Taylor asked and it was confirmed by Public Works Director Kersten, that Sipple is a public road and would be maintained by Spokane Valley. Councilmember Gothmann said that in late October Council will be presented with a plan for the corridor and suggested that perhaps council should look at that plan before considering this vacation request; and said in regard to Sipple and the two companies' desire to perform major modifications, asked that perhaps part of those modifications could include the through -road of Sipple; and at the second reading, he feels it would be appropriate to postpone this final decision until the corridor plan is presented. Regarding the 50% assessed value fee, Deputy Mayor Taylor said that there was no ordinance draft at the last meeting, as this is the first reading of the ordinance; and said that Council has discretion of whether to allow the vacation; that this would be Council's first approval of an improved public right -of -way, and keeping in mind the importance of Appleway to Auto Row in implementing the auto row overlay zone and Sprague revitalization area, he favors moving this ordinance forward, but would like to hear what kind of discussions can take place between the City staff and owners regarding some way to replace a portion of the value of this public right -of -way. Council Regular Meeting: 10 -09 -07 Page 4 of 8 Approved by Council: 10 -23 -07 Councilmember Denenny mentioned that regarding Sipple and its extension, there are buildings on either side, and he said he can't imagine an environment where the parties will give up some space when they have indicated they lack space; therefore Sipple is a no- issue; and regarding value and compensating the City, Councilmember Denenny said he looks at value at it relates to overall willingness of a buyer, and he can't imagine an environment in which one would find a ready buyer other than the Appleway group; and Gus Johnson needing anything in the way of First or Sipple. It was moved by Councilmember Schimmels and seconded, to amend the motion to strike the last sentence under Section 5, #6 [In addition, the applicant shall pay [fifty percent (50 %) of the appraised value of the vacated property received]. Vote by Acclamation to amend the motion: In Favor: Councilmember Schimmels, DeVleming, and Denenny. Opposed: Mayor Wilhite, Deputy Mayor Taylor, and Councilmember Gothmann. Motion tied and was therefore defeated. Vote by Acclamation on the original motion to advance the ordinance to a second reading: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 10. Proposed Resolution 07 -016, Requesting Establishment of the Greater Spokane Valley Library Capital Facility Area — Mike Connelly It was moved by Deputy Mayor Taylor and seconded, to approve resolution 07 -016 approving the request to establish the Greater Spokane Valley Library Capital Facility Area. Deputy City Attorney Driskell explained that this is the prerequisite to the Library District placing this matter on the ballot; approving the creation of the Greater Spokane Valley Library Capital facility Area, and approving a joint request for the same to the Spokane County Board of County Commissioners. Mayor Wilhite invited public comment. Ann Apperson, Chair of Spokane County Library District said this is one of the steps to carry out the full plan for the Greater Spokane Valley area for the Library District; and said that asking for approval of this resolution will put before the voters at the March 2008 election, the sales of general obligation bonds to fund the projects; she also stated that the plan includes replacement of the Spokane Valley library with a larger facility; a new facility at Veradale; and expansion of the Argonne Branch, and will create the Capital Facility Area. Ms. Apperson said that the cost is an estimated 25¢ per $1,000 assessed value, and that Millwood recently approved a similar resolution. Mayor Wilhite invited further comments; no other comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Mayor Wilhite called for a recess at 7:04 p.m. and reconvened the meeting at 7:15 p.m. 11. Motion Consideration: Adoption of CenterPlace Marketing Plan — Mike Jackson Parks and Recreation Director Jackson explained that staff have been working with the Desautel -Hege consulting firm to develop a marketing and communications plan for CenterPlace; that the purpose of the plan is to document the regional marketing objectives and to communicate those objectives to all interested parties. In his Powerpoint presentation, Mr. Jackson explained the proposed audiences, key messages marketing strategies, response to customer needs and ended with the additional recommendation that food service provide flexibility through the existing catering program while adding turnkey service through a food service provider. Mr. Jackson mentioned that page 28 of the Plan shows the proposed list of advertisers. Council /staff discussion included tracking use, measuring revenue, number of customers needed to offset the advertising cost; food service agreements and possible issuance of a Request for Proposal for catering; the desire to keep the flexibility of catering and pros and cons for having multiple food providers and for having a single contract provider; getting more information from and opinions of users; that additional staff has been added; and that this Plan can be amended in the future as needed. Director Jackson said he can gather further information for later Council discussion concerning the issues mentioned. Mayor Wilhite invited public comment. Eldonna Shaw, President and CEO of the Greater Spokane Valley Chamber of Commerce: said that the Chamber convened a task force last spring to give constructive feedback on the Plan, and at that time, Council Regular Meeting: 10 -09 -07 Page 5 of 8 Approved by Council: 10 -23 -07 Rustin Hall was the Chair of that Government Affairs Committee and worked closely with a team to gather information. Rustin Hall, 10520 East Holman Road: mentioned that their task force, which was requested by their full board, had the ultimate task of being a good partner and making sure tax dollars and resources are used wisely; that the task force members included Eldonna Shaw, Lee Cameron, Wayne Frost, Bill King, David Crosby and himself; that they discussed this plan with members of the community and with Harry Sladich with the CVB; and they spent quality time with Mike Jackson and Gary Livingston; and that the conversations direction focused on maximizing the facility; and considered such things as the use of a proven model to market the facility, the use of one food service provider, and out - sourcing the management of the facility. Mayor Wilhite mentioned that from past briefings, Council has been apprised that we have generated sufficient revenue to cover services; and added that finding a model that strikes a balance for non - profit and other events might not be easy; and she stated that increases in the building's mid -week use have been phenomenal. Councilmember Gothmann asked about a conversation he had with Mr. Mercier concerning management outsourcing and asked what the City has investigated regarding this option. Ms. Regor said that she was not familiar with that conversation. Lee Cameron, 1100 N Sullivan Road: Mr. Cameron said he is the business owner of Mirabeau Park Hotel and a member of the City's Lodging Tax Advisory Committee; that he endorses the report from the Chamber of Commerce and feels it is a thoughtful attempt to address some policy issues; that he wants to make sure tax dollars are used as wisely as possible; and he asked if there are policy issues for further discussion, that council wait to make those as he would like to have a chance to evaluate the proposal as a member of the Lodging Tax Advisory Committee. Mayor Wilhite and Mr. Jackson said they will keep Mr. Cameron appraised. It was moved by Deputy Mayor Taylor and seconded, to adopt the CenterPlace Regional Marketing and Communications Plan and to allocate $90,000 in Lodging Tax Funds in 2008 to implement the Plan; and with instructions to bring information back to Council on the possible food service contract options. Other public comment: Pete Rayner, Owner and Developer of Bacon Hill Properties, LLC, 4848 E Wellesley, Spokane: Mr. Rayner said that he reviewed the Plan and the Chamber's report, and said he is familiar with Desautel- Hege as he has used every aspect of that same study; but he found some things in that report don't hold up and he mentioned pricing, stating that they have discretionary pricing and their prices are approximately 500% higher then the CenterPlace fees; and if Spokane Valley wants to have corporate clients, we will have to make changes. Ellie Rayner -Aaro, Co -Owner of Beacon Hill: shared some experiences of their facility's use over the last ten years and how they built corporate relationships; that they have an overall event management and have a one - person contact to personalize customer communications; adding that meaningful relationships takes time and experience. Vote by Acclamation on the motion as stated above: In favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 12. Motion Consideration: Council Support of Spokane Proposition No. 2: - Mike Connelly "Spokane County Proposition No. 2: One -tenth of One Percent Sales and Use Tax Solely for Emergency Communications Systems and Facilities. The Board of County Commissioners of Spokane County Council Regular Meeting: 10 -09 -07 Page 6 of 8 Approved by Council: 10 -23 -07 adopted Resolution NO. 07 -0690 concerning a proposition to increase the sales and use tax. The proposition would impose an additional one -tenth of one percent sales and use tax throughout Spokane County, the proceeds there from to be used solely for costs associated with financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, reequipping and improvement of emergency communication systems and facilities. Should this proposition be approved? Yes No" a. Comments Advocating Approval b. Comments Advocating Rejection Mayor Wilhite announced that they will hear arguments for and against the proposition prior to Council making a motion, and that each side's arguments will be limited to a total of 15 minutes. Deputy City Attorney Driskell added that staff takes no position on these issues; that handouts have been received, and Council has three potential motions, to express support, to express nonsupport, or to remain neutral. Mayor Wilhite invited Chief Thompson to give comments advocating approval of the proposal. a. Comments advocating approval Those speaking advocating for the proposal included Fire Chief Thompson, Sheriff Knezovich, and Spencer Bahner from an engineering and technology consulting company in Seattle. A Powerpoint presentation was given advocating approval, which included mention of improving the system, restoring crime check, using funds as per RCW 82.14.420, citizen contacts, overall impact, the Regional Emergency Communication System, current system results, interoperability, communication shortfalls, the rationale for not having a sunset clause, and information and statistics on the Sheriff's Office. b. Comments Advocating Rejection Mr. John Roskelly, 16614 S Foothill Road, gave his Powerpoint presentation advocating rejection of the proposition, which included a statement that he supports restoring Crime Check and upgrading the system, but feels another sales tax increase is not the way to fund those programs; he gave his reasons for voting "no" on this tax: citizens already pay the tax, a lack of a documented study to determine costs, no sunset clause, more money will be collected than needed, higher sales taxes are bad for businesses, there are no exemptions on this tax, there are already three taxes in place for criminal justice and pubic safety, and that elected officials need to better control budgets. Mayor Wilhite invited other public comments. Chuck Hafner, 4710 S Woodruff: said he wrote the pro statement; that he doesn't care what happened in the past, but there is a need now to upgrade the communication system and return crime check; and that the equipment needs to be updated for the welfare and safety of our community. Mayor Wilhite invited other public comments and no other comments were offered. Although Deputy City Attorney Driskell suggested giving the opposition additional time to respond to Mr. Hafner's remarks, Mr. Roskelly declined. Mr. Driskell reminded Councilmembers that if Council is going to have discussion, such discussion needs to be limited to what is allowed under the law. Mayor Wilhite said that in order to have the types of things we like to have in terms of emergencies, the sheriff's office, fire and police departments all need to talk to each other, and she invited Chief Bobby Williams to speak to that issue regarding the City of Spokane. Chief Bobby Williams, Representing the Spokane Fire Department: said that law enforcement and communications in the City of Spokane fall under the conditions and challenges that were identified by Mr. Bahner; that they face some FCC - mandated changes which must occur by 2013 which will not be easy to meet without appropriate funding; that all the fire departments and police departments have a $40 million price tag, and Spokane doesn't have that in their general fund budget. He mentioned that in 2005 he laid off 25 people; and that there are limited funding mechanisms and upgrades which must be taken Council Regular Meeting: 10 -09 -07 Page 7 of 8 Approved by Council: 10 -23 -07 care of; that as a member of the 911 Board, the Board feels that Crime Check is an essential part of this service, as not having a non - emergency communication system overwhelms the 911 circuit board. Mayor Wilhite invited further comment from Mr. Roskelly. John Roskelly: Mr. Roskelly said he was formerly a member of Spokane Council, and during those years, the budget was "run into the ground." He said that he also sat on the County Commission board for nine years; and that eight of those years, they tightened their budgets and had the best budget in the state due to prioritizing; he said he does not advocate another sales tax initiated on a "sky falling" scenario; that other options have not been explored, and said that there are no state levies paying for this because there is no plan. It was moved by Councilmember DeVleming and seconded, to express Spokane Valley City Council's support of Spokane County Proposition No. 2, November 7, 2007, ballot issue for one -tenth of one - percent sales and use tax solely for emergency communication systems and facilities. As member of the 911 Board, Councilmember DeVleming said they have three strong issues: crime check, long ranging for 911, and the communication system upkeep, adding that federal mandates are very real. Other brief Council discussion ensued regarding allowing the public to be the ultimate decision maker at the ballot box, a lack of options to address the needed level of funding to support the services; and that public safety is a number one priority. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. It was moved by Deputy Mayor Taylor and seconded, to extend the meeting to 9:10 p. m. Vote by Acclamation: In Favor: Mayor Wilhite, Deputy Mayor Taylor, and Councilmembers Denenny and Gothmann. Opposed: Councilmembers Schimmels and DeVleming. Abstentions: None. Motion carried. PUBLIC COMMENTS: Mayor Wilhite invited public comments; no comments were offered. ADMINISTRATIVE REPORTS: n/a INFORMATION ONLY: The Greenacres Neighborhood Park Project was for information only and Was not discussed. EXECUTIVE SESSION: Land Acquisition; Pending Litigation. It was mentioned that there would be no executive session. Deputy City Attorney mentioned that tonight is Ms. Regor's last meeting with us as she leaves for California this weekend; mentioned that it has been a privilege to work with her; and Council and staff thanked Ms. Regor as well. There being no further business, it was moved by Deputy Mayor Taylor and seconded to adjourn. The meeting adjourned at 9:01 p.m. ATr C 4 ' 4 " Christine Bainbridge, rty Clerk Utiuti4 ? Diana Wilhite, Mayor Council Regular Meeting: 10 -09 -07 Page 8 of 8 Approved by Council: 10 -23 -07 PRESENTATION TO SPOKANE VALLEY CITY COUNCIL October 9, 2007 By Peie R and Ellie .Rayner-Aaro • Beacon Hill History • Similarities With Center Place • How We Are Different • Items For Special Consideration • Professional Event Planners • In -House Corporate "Event Planners" • Wedding Pricing Strategies • Corporate Pricing • Seasonal Pricing • Hotels • Convention And Visitors Bureau (CVB) • Level Of Service (LOS) • Exclusive Caterer /Sales For Corporate Clients But Not For Private Parties • Marketing • Return On Investment • Conclusion PRESENTATION TO SPOKANE VALLEY CITY COUNCIL October 9, 2007 By Pete Rayner and Ellie Rayner -Aaro BEACON HILL HISTORY • Established Event Facility in 1997 1. Convenient Location 2. Wonderful Setting 3. Clean Facility 4. Friendly Staff 5. Few Services 6. No Food Service • Initial Marketing Focus 1.. Bridal Fairs and Brides Magazines 2. Member Chamber Of Commerce 3. Courted Hotels 4. Contacted Event Planners 5. Hosted Business After -Hours 6. Advertised • BEFORE & AFTER. Adding Complementary Services 1. Year 2002 - Hosted 50 Weddings w /average rental charges of $1,200 per Event 2. Year 2002 - Hosted 25 Corporate Events 3. Year 2003 - Added Food /Catering Services 4. Year 2003 - Increased variety of services 5. Year 2007 - Hosted 80 Weddings with rents alone ranging from $3,200 per Wedding during Winter season, to $4,600 per Wedding on Saturdays during Summer season 6. Year 2007 - Hosted and /or Catered over 150 Corporate Events, including several at Center Place 7. Revenue has increased over 400% since 2003 Page 1 of 6 • SIMILARITIES WITH CENTER PLACE 1. We Are An Event Facility > We Operated For Six Years Without An Exclusive Caterer - We originally feared that if we went Exclusive we might lose our Wedding business and not have enough Corporate business to make up the difference > We tried everything to obtain Corporate Business that was suggested in Center Place's Marketing Report prior to adding Exclusive Catering, and It Did Not Work! • We now offer Exclusive Catering Services which has become very successful and profitable for us • HOW WE ARE DIFFERENT 1. Beacon Hill Is A Private Corporation And Is Purely Product, Service And Profit Driven 2. Center Place is run by the City Council who Answers To The Residents Of The City Of Spokane Valley 3. Center Place Has Several Additional Options For Use Of Its Facility Other Than Just Booked Events • ITEMS FOR SPECIAL CONSIDERATION The report from Desautel -Hege, it is quite accurate. 'However, the following are some important matters to consider based upon our years of experience in the Event Business 1. Professional Event Planners i :Professional Event Planners are expensive > Professional Event Planners prefer to work with only very large events because, generally speaking, only large events can afford the time and expense of a professional event planner • Center Place is much larger than Beacon Hill and would be appropriate for some of the larger Event Business » Only a select few Event Planners have remained in the business for more than just a short period of time - Many enter the business, but few stay because of the expense and difficulty in making a living Page 2 of 6 2. In -House Corporate "Event Planners" > Corporate Executive makes the primary decision to host an Event :- Event planning generally falls to the Executive Administrative Assistant (Exec Admin) • The Exec Admin's expectations vary at every business • Exec Admin personnel frequently change from year -to -year • Difficult to market directly to them because they are hard to identify in any economical way • Exec Admins do not want to risk egg on their face if they hire the wrong group 9 Reputation and single point of contact is absolutely crucial! 3. Wedding Pricing Strategies 9 Successful Weddings consume a great deal of time - Beacon Hill has a full time Wedding Coordinator /Sales Person > Beacon Hill's rent for Weddings for any Saturday in the Summer of 2008 is $4,600, and we have only three dates still available 9 Beacon Hill catering prices now include linens, china, silverware, beverage service and cake cutting along with numerous other services — By charging more, we are able to provide additional and higher levels of service, and this generates more business 4. Corporate Pricing 9 Beacon Hill's rent is as low as $250 per Weekday • Many of our Corporate clients will book an entire event with just one phone call - — Less labor, less expense, lower price • Our per -plate charge for Corporate is a good deal higher than for Weddings - the higher price covers some of the rental and makes up for the lower number of guests 5. Seasonal Pricing 9 Beacon Hill offers lower rates for Winter and Spring/Fall > Pricing is higher for events scheduled on Fridays, Saturdays and Sundays > Weekdays are priced less than Weekends, and Evenings are priced higher than Weekdays 9 Pricing should be driven by the market and not by who calls first Page 3 of 6 6. Hotels > Beacon Hill has worked with almost every Hotel/Motel in the area and has referred a significant amount of business to them • Since implementing Full Services to our clients, we estimate having referred ten times as many clients and their guests to our local Hotels than prior to Full Service • Beacon Hill has received very little referral business from the -Hotels > The higher the cost of the Weddinr?, the more guests attend who can afford and will therefore stay at our local Hotels and add additional revenue to our local economy 7. Convention and Visitors .Bureau (CVB) > You must offer a Service that the Conventioneer wants but is unable get next door to the Convention Center > Beacon Hill is working on a program that is incredibly popular in Seattle and Las Vegas and we expect to launch this program the First Quarter of 2008 — This program is not currently offered in Spokane and is a high value to CVB Visitors > Prior to investing a great deal of more time with the CVB, we will have a product they can sell • What does Center Place offer that is unique and of interest to the Convention client? • What can Center Place do to create such a product or service? S. Level Of Service (LOS) It took us a while to learn this -.rut... > In the Event Business, Customers remember • Level of Service • Quality of Food • Event Facility • In Spokane, Customers are also very price- conscious • The challenge is to charge enough to be able to provide the LOS that your Clients expect and are willing to pay for • LOS must be consistent! • It is very difficult to staff and provide the LOS that Corporate Clients demand on Thursday, and in turn, have a bare bones Wedding on Friday Page4 of 6 9. Exclusive Caterer /Sales For Corporate clients but Not For Private Parties r There are some very real practical problems if you utilize an Exclusive Caterer to manage only the Corporate Events, and leave the Weddings and Private Parties to the Public and Others - ie. Necessity of replacing missing items such as • China and serving utensils • Pots and pans • Condiments, spices, etc > Liability • Responsibility • Accountability • Equipment maintenance • Staffing • Generating enough business to make it worthwhile 1 0. Marketi ng > Marketing at Center Place has been very successful • Center Place has hosted nearly 500 events per year ✓ Question to ask before you spend a great deal of time and money on marketing/advertising is • "Do we have a product the Corporate Client wants ?' > If the answer is "Yes ", then Market/Advertise > :If it is necessary to change how you do business in order to get the Corporate Client, then do you want to make those changes? 11.Return On Investment > Center Place was built to accommodate top -level events • The market will support much higher prices & LOS ✓ The Center Place kitchen is state-of-the-art • Much of the equipment has never been used because the clients do not possess the expertise, or do not work there often enough to appreciate what the kitchen is capable of > Agreements with facilities like Center Place will typically provide for the rental fee and a portion of the food and beverage sales to go to the City Page 5 of 6 • if the decision is made to enter the Corporate arena as suggested, sufficient revenues could be generated to fund other City activities such as a user - friendly meeting facility CONCLUSION • if you choose to make the changes necessary to attract Corporate Clients, our experience is that you will be successful beyond your wildest dreams • Our Mission Statement has evolved from "Providing a great place to hold an event" to "Providing a memorable experience for every guest at every event." • What People Remember Is Not The Place But The Experience! Without control of the LOS and the Food, you will never have control of the experience - We would never go back. Page 6 olr6 NAME PLEASE PRINT ADDRESS TELEPHONE N.A. "Stretch" Brown GM 3/C US Navy Armed Guard 4 Ships • LSM 393 — WWII ' USS Boyd DD 544 USS Los Angeles CA 135 -Korea 11 trips overseas in war tirne 21 countries + 3 islands Over 250,000 miles in war time 509 - 926 -3066 ....._____------- ( yjot----- l lila ; ., , '' te ' r 1 *`+ \- rscy Spokane Valley SPOKANE VALLEY CITY COUNCIL MEETING Tuesday, October 9, 2007 Public Hearing at the PRINT NAME AND ADDRESS FOR THE RECORD. There may be a time limit for your comments. Any documents for Council consideration should he provided to the City Clerk for distribution. NAME PLEASE PRINT ff. I T tith tq It TOPIC OF CONCERN YOU WILL 2;A}'j 'fiIYJ1 I GO i I I ADDRESS TELEPHONE , U-J 77 /419— a • -, *r. DS'20 " O r ry • V. 6Fe�' et. , // 5E 4/ 4l$ c: l e V� ue ,'(N1 e � �l So ' t" Zr `l! z., Gt/ /L .i ✓ Ors ; / ' !GENERAL PUBLIC COMMEN11 SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING: DATE: October 9, 2007 CITIZEN COMMENTS YOUR SPEAKING TIME WILL RE LIMITED TO THREE MINUTES