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2008, 10-07 Study Session MinutesMayor Munson called the meeting to order at 6:00 p.m. and welcomed everyone to the meeting. Present: Councilmembers: Rich Munson, Mayor Dick Denenny, Deputy Mayor Rose Dempsey, Councilmember Bill Gothmann, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember Diana Wilhite, Councilmember MINUTES CITY OF SPOKANE VALLEY CITY COUNCIL STUDY SESSION Tuesday, October 7, 2008 Staff: Mike Jackson, Deputy City Manager Mike Connelly, City Attorney Cary Driskell, Deputy City Attorney Neil Kersten, Public Works Director Ken Thompson, Finance Director Kathy McClung, Community Development Dir. Mike Stone, Parks & Rec Director Greg McCormick, Planning Manager Christina Janssen, Assistant Planner Mary Kate Martin, Building Official Carolbelle Branch, Public Information Officer Bill Miller, IT Specialist Chris Bainbridge, City Clerk Mayor Munson asked for council indulgence to move agenda item #9 to agenda item #2; then to carry on with the remaining agenda items in order, and said because he is not feeling well, that he would likely leave after discussion of the transportation agenda item. There was no objection. 1. International Trade Alliance (ITA) Sister City Proposal — Mark Peters Mr. Peters explained that he was invited to provide information regarding a future opportunity for our City to participate in the establishment of a Sister Cities Relationship; that the ITA is working in partnership with the Sister Cities Association of Spokane in developing a program that will serve as the prototype on the municipal approach to climate change; and mentioned that other local community organizations will be partners in this venture as well; that Spokane's Sister City program has established relationships with cities in Japan, China, Ireland, and Korea; that this program would connect like- minded leaders from the Inland Northwest and Asia, and said that the ITA would organize and facilitate the peer - to -peer exchanges and business development missions for community stakeholders; that participants would share best practices in municipal planning and development; promote training programs for green collar jobs; and expand business relationships relating to clean technology. Mr. Peters mentioned that the Asia - Pacific Partnership on Clean Development and Climate brings together seven major Asia - Pacific countries that collectively account for more than half of the world's economy, population and energy use; that the Partnership builds on the foundation of existing bilateral and multilateral initiatives, an is consistent with and contributes to Partners' efforts under the United Nations Framework Convention on Climate Change, and complements but does not replace the Kyoto Protocol; that the program is funded by the U.S. Congress; and funds are used for community leaders to visit other areas and bring in delegations; and he then introduced Jenifer Priest of his office. Ms. Priest, current Chair of the Board of Directors for the City of Spokane Sister Cities Organization, explained that Spokane has been at the forefront of the Sister Cities Program which began over fifty years ago; she mentioned Spokane's relationship with Japan and of the societies and umbrella group for those societies, and said she serves as liaison between the Mayor's office and the Sister Cities Societies. Ms. Priest explained that in 2005, Spokane hosted the International Conference, which is usually done via a Study Session Meeting Minutes: 10 -07 -08 Page 1 of 5 Approved by Council: 10 -14 -08 grass roots level organization with support of the Mayor's office; that overseas these programs are driven by City Halls or the Mayor's Office whereas in the United States, it is done at more of a grass roots level. She explained that this is a great opportunity for the region to look at how to use those relationships for economic good and development of companies; that they do some simple, modest fundraising such as dinners, with the estimated $2,500 proceeds being used as matching grants to individual societies to fund their travel or for scholarship programs. Mr. Peters added that this could also be an opportunity to promote trade, and said that ITA might be able to support the establishment of that activity, but added he sees this as having a small impact on the City. Ms. Priest said that the time spent by staff is very little as the majority of the work is designated through the Sister City Association, which works on behalf of the mayor. Mr. Peters mentioned the possibility of financial support by ITA; as they would be part of the outreach as long as the focus is on business development. Councilmember Wilhite suggested having an interested citizen group to form a Sister City Relationship as she would look to the community to see if there is any interest in a particular country; and that perhaps Council could assist with support by such things as invitations; that she has been active in the Japanese Sister Cities and the functions are well attended; and that she would want to examine such proposal from a business aspect as well. Mayor Munson stated he would like to get more information on the federal programs, and Mr. Peters indicated he was hopeful to have further information in December. 9. Regional Transportation Projects Legislative Agenda — Mayor Munson Mayor Munson brought Council attention to the additional handout entitled "Regional Transportation Meeting Summary," a summary of the September 24, 2008 meeting of a self - selected group of business, civic, and elected officials, which was attended by Councilmember Wilhite. Councilmember Wilhite explained that the meeting, held at the Spokane Regional Chamber of Commerce and attended by members of Greater Spokane, Inc. and community leaders and elected officials, got together to discuss, and reached agreement on, a list of priority road, transit and study projects that this region can advocate for in the 2009 Legislative Session; and said that the group also reached consensus on options to pursue for funding of street maintenance and operation, as well as matching funds for capital; as the rationale is if the region can come up with a project program, funding chances would be greater as the individual entities would not be competing against each other. Councilmember Wilhite said that Judy Cowles gave a presentation on the corridor study and of what they're trying to do regarding transportation from Canada through Idaho and into Washington, and how to connect that with the North /South Corridor; and said funding was also discussed. Councilmember Wilhite further stated that Senator Marr was also in attendance and he mentioned at that meeting that communities need to provide some funding in order to get the legislature to more completely fund the programs; and there was agreement from the cities to form a Regional Transportation District, but not to implement it until there is a better idea of the individual cities' needs. Ms. Wilhite also reported that she attended a meeting with Representative Timm Ormsby, and the question came up about the shortfall of the State and how decisions would be made regarding the capital budget. She reported that Representative Ormsby said he would like to see more capital project dollars spent on infrastructure projects like sewer, water and roads, and said that with the current economy, these are the projects that provide jobs; and he said that the funding from the gas tax has been lowered also increasing the difficulty in getting funding for projects. Mayor Munson invited Jim Huttenmaier of the Greater Spokane, Inc. to share his views of the meeting. Mr. Huttenmaier explained that he attended the meeting as well, and said there is difficulty with funding at all levels; that the 2009 Legislative session will show a tremendous shortfall of funds which some have estimated as high as $3.2 billion; that there will be little if any additional dollars for any projects; that this region has been asked by Senators and Representatives to come together to decide as a region, if possible, what projects, particularly transportation capital projects, we can agree on and ask for those to be advocated for on our behalf; that all the communities were asked to submit projects with the criteria that it would be regional in significance and could be construction ready by the time the funding became Study Session Meeting Minutes: 10 -07 -08 Page 2 of 5 Approved by Council: 10 -14 -08 available July 1, 2009; and that such projects should also direct climate change issues, such as limiting the vehicle trips, emissions, etc. He stated that fifteen projects were submitted and members of all communities scored the projects and the result is the priority list before Council; and added that the leaders reached consensus that this is a good list of projects and they feel comfortable in taking it to the legislators; and that the Spokane Valley Chamber, the West Plains Chamber, and the Greater Spokane, Inc endorsed this list. Discussion then ensued concerning a lack of time to allow elected officials to give sufficient and significant input on these projects; mention that the list includes those projects already approved by the various elected officials through the TIP (six -year Transportation Improvement Plan) process; mention from Mayor Munson that he attended a meeting last Wednesday called by County Commissioner Mager to discuss what occurred at what is now referred to as the "little tent" meeting (September 24, 2008), and the consensus in that room was there is not enough time to review this list, and that Cheney submitted nothing as they don't have the staff to address this; and Mayor Munson said he did not want to indicate support of this project without bringing this before Council; and that the hopeful outcome would be voicing a decision on supporting the formulation of a County Transportation Benefit District (TBD) in the future. Mayor Munson added that the feeling is the voters would vote down such a TBD, and in the interim it would be good to explain to the public why this is needed; that entities agreed the City's maintenance and operational needs (M &O) must be met before regional funding; and the details will be in the interlocal agreement developed and approved by each entity; and said there were was discussion of forming a TBD but not to implement it yet; which would likely raise expectations that such would fail when brought to the voters. Other areas of discussion included mention of how a street utility tax would fit into a regional TBD; problems associated with a TBD such as no inflationary calculations; the need for staff and council interaction; mention of specific projects such as Barker Road and if that project would best fit the criteria or would others; changing the criteria so other projects might fit better; and if there was more time projects could be designed with the criteria in mind, thus assuring higher scoring of the project; and a reminder that being "shovel ready" was a top criteria for projects. Mayor Munson asked for a consensus to agree to the list of priorities, but no consensus was given at that point, as discussion continued concerning specific projects. Mayor Munson asked if Council would like to more time to re- evaluate the list and there was a general consensus more time is needed. Other discussion points included mention that federal funding should be used for such projects as the North/South Corridor; an interest was shown in forming a county -wide TBD but it was mentioned that a lot depends on how the City of Spokane feels about doing so; and the idea of having thirty- second sound bites for the public to be informed on this process. Mayor Munson said he would bring back that we would support the projects as stated; there is support for some day forming a county -wide TBD if interlocal agreements state local needs are first regarding funding, and to specify projects. Mayor Munson called for a recess at 7:00 p.m., and he excused himself from the meeting. Councilmember Schimmels excused himself from the meeting as well due to family health matters. Deputy Mayor Denenny reconvened the meeting at 7:10 p.m., noting that both Mayor Munson and Councilmember Schimmels have excused themselves from the remainder of the meeting. 2. Community Re Licensing — Cary Driskell /Jim Bledsoe Deputy City Attorney Driskell gave a brief summary of the program and of the 2008 grant funds which staff was authorized to apply for in partnership with the City of Spokane and Spokane County to implement the Community Relicensing Program, and he then introduced Spokane Prosecuting Attorney Mr. Jim Bledsoe who went through his PowerPoint presentation giving an update of the Community Relicensing Program. Mr. Bledsoe explained the purpose of the project and how it operates, who would qualify to participate and who would not, and a synopsis of the project's success to date. Mr. Driskell Study Session Meeting Minutes: 10 -07 -08 Page 3 of 5 Approved by Council: 10 -14 -08 advised that now is the time to apply for 2009 funding; and Council concurred that this project may be placed on the next Council's consent agenda for council approval consideration. 3. Uniform Development Code Batch Code Proposed Amendments — Christina Janssen /Greg McCormick Assistant Planner Janssen gave an overview of the proposed amendments as listed on her October 7, 2008 Request for Council Action form, explaining that the ten separate proposed changes are as a result of items which were incorrect, impractical, or which had been inadvertently omitted. Discussion which generated as a result of these proposals included asking for a definition of "duplex" and where duplexes are allowed, and the difference between a "duplex" and a "townhouse;" comparing the proposals to what is currently in the code; mention that problems dealing with lighting infringing on neighbor's properties would be complaint driven; that buffering refuse storage need not be expensive and could be done by fencing; that the Planning Commission has reviewed each of these proposals and they recommend approval, and that as the proposals must first be submitted to CTED (Community Trade and Economic Development); these amendments are not scheduled to come before Council until mid November. 4. Shannon Avenue Parking — Inga Note /Neil Kersten Public Works Director Kersten explained that staff received a request from the East Valley School District to restrict parking in the Shannon Avenue cul -de -sac east of Pines Road as their larger school buses have difficulty maneuvering in the cul -de -sac when parked vehicles are present; and added it could be seen as a fire safety issue as well; that there should be adequate parking within the nearby apartment complex, and as this request would exceed 100 feet, it must be authorized by Council. Mr. Kersten said the no parking zone would be for 330 feet. Deputy Mayor Denenny asked about notifying residents and Mr. Kersten said notification is not required. It was determined that this item should be placed on the next regular council agenda for motion consideration (not consent agenda). 5. Appeal Procedures — Cary Driskell Deputy City Attorney Driskell explained that when Council adopted the UDC in 2007, the rules for appeals of the Hearing Examiner decisions to the Council was erroneously identified as Appendix B rather than Appendix C, and such appendix was not attached; that omission was recently discovered when an appeal was filed, and staff now seeks to remedy that omission. There was Council consensus to bring this forward on the October 14 agenda for a first reading. 6. Fee Resolution Proposed Changes — Ken Thompson Finance Director Thompson explained that next week Council will see the draft fee resolution showing proposed changes; that members of staff are present tonight to explain any of the noted changes; and as noted, many of the changes are new, with the exception of adding an overall 10% increase as Mr. Thompson mentioned such has never been done. Mr. Thompson also suggested Council might want to consider either raising the special event fee of $5.00, (which fee originated from a discussion concerning National Night Out block parties); or not charging a fee as processing a $5.00 fee would cost more then the fee itself. Discussion ensued regarding what would trigger the need for a special event permit; and how that differs from a gathering of 200 or more people; that $50.00 would be more in line with actual costs, but would be cost prohibitive to many wanting to have such special event; the idea of separating the National Night Out event from other special events; or changing the fee to $15.00; that there are very few special events per year and of the suggestion of suspending the fee for this year and re- examining it next year to see how many events we would process. There was also discussion on the overall fee increase of 10% and it was mentioned that our fees are generally lower then Spokane City, but higher then Spokane County. It was determined these issues will be addressed when the track - change version comes back before council, and that council would like to see the fee changes that have occurred over the last several years in order to see how things have changed prior to implementing an overall 10% increase. Study Session Meeting Minutes: 10 -07 -08 Page 4 of 5 Approved by Council: 10 -14 -08 7. Swimming Pool Update — Mike Stone Via his PowerPoint presentation, Parks and Recreation Director Stone gave an update on the pool projects and mentioned a potential site acquisition project adjacent to the Park Road property, which is under consideration for the legislative agenda; and said such would double the size of the facility and would be able to be developed as a neighborhood park, adding that property owners are very interested in such a proposal. Mr. Stone added that the school district has been storing their seasonal equipment at the pool house during the fall, which all sets the ground for a cooperative agreement to help funding. 8. General Budget Discussion — Mike Jackson Deputy City Manager Jackson mentioned that this is the last general discussion prior to the final public hearing, followed by the ordinance readings to adopt the budget; that regarding the setting of the property tax rate for property taxes, the amount of $1.53 was previously discussed but Mr. Thompson indicated that is now likely closer to $1.49, which is essentially the same as the current rate; that the current trend says we can anticipate another 2% decrease in sales tax over what was previously predicted, amounting to a potential $300,000 deficit; and such will be monitored by Mr. Thompson, and that there is some cushion in the budget under contingencies and reserves, and that $300,000 may not make a large difference as typically there is greater return in unspent appropriated funds to the budget. Councilmember Taylor said he would like to see the amounts budgeted for particular studies or consultant work over the next year, as well as what is budgeted for travel, conferences, association dues, etc., and would like that information brought back for council review so Council can look at possible areas to trim if such would become necessary. 10. Advance Agenda — Mayor Munson The advance agenda was not discussed. 11. Information Only: The Argonne /Knox Intersection, Senior Center Demolition Bid Award, and Interim Emergency Code Ordinance Amendment were for information only and were not discussed or reported. 12. Council Check -in — Mayor Munson The Sprague Appleway Revitalization Plan discussion from last week was mentioned and of upcoming further discussion on the exterior improvements meeting the 20% threshold and whether 20% was too restrictive. 13. City Manager Comments — Mike Jackson Deputy City Manager Jackson mentioned the Park Road pool property and said that acquisition is one of the legislative items adopted by council, that this was sent to our Lobbyist and we will be requesting $300,000; that Mayor Munson is scheduled to make a presentation October 9 to Greater Spokane Inc. to include mention of the development fund of $200,000 for Greenacres; $300,000 for this acquisition; and that we are informing our Lobbyist of the need for $700,000 total to complete Greenacres Park. 14. Executive Session: Land Acquisition There was no executive session. There being no further business, Deputy Mayor Denenny adjourned the ATTES • liristine Bainbridge, ity Clerk eeting at 8:58 p.m. nson, Mayor Study Session Meeting Minutes: 10 -07 -08 Page 5 of 5 Approved by Council: 10 -14 -08 Regional Transportation Meeting Summary F itx G -- On September 24, 2008, a self - selected group of business, civic, and state, county and local elected (2' - representatives reached agreement on a list of priority road, transit, and study projects that this region can advocate for in the 2009 Legislative Session. The group also reached consensus on options to pursue for funding of street maintenance and operation, as well as matching funds for capital projects. Priority Road, Transit and Study Projects: Glenn Miles of the Spokane Regional Transportation Council reviewed the Regional Project Prioritization Criteria — how it was developed, call for projects, review, scoring, and ranking of the projects by SRTC's Transportation Technical Committee and community representatives. The primary criteria being: regionally significant and shovel ready. The top category priority projects include: Capital Road Projects: #1 - North Spokane Corridor #2 — CheneylSpokane Road Interchange over US 195 #3 — Barker Road Overpass (Bridging the Valley) Non - Motorized/Transit: #1 — Fish Lake Trail #2 — Vanpool Expansion for STA Studies: #1 — Northwest Connector Study — an arterial road connection between north Spokane County and the West Plains area. #2 — University District Pedestrian /Bike Bridge & Division Street Gateway /Streetscape #3 — Urban Trail: Millwood to Spokane Valley Funding of Maintenance & Operation 1 Matching Funds for Capital Projects: Data presented showed a county -wide funding gap of $44 million in annual street maintenance and operation — which includes general maintenance, street repair & resurfacing, adding turn lanes, traffic signals, lighting, street cleaning, snow & ice removal, and other items. The group consensus was to move forward with establishment of a county-wide Transportation Benefit District with the dual purpose of funding m & o, as well as raising matching funds for capital projects. The consensus on Street Utility Fee was to gather additional information so that a decision on the path forward for the 2009 legislative session could be made. Information will include: a draft of the proposed legislation, highlighting fee calculations and "fixes" for constitutional matters; a review of stakeholder support/opposition, to include but no be limited to: Assoc. of Washington Cities, Assoc. of Washington Counties, Assoc. of Washington Business, Bankers Association, Restaurant Assoc. and others. Next steps: The action items agreed upon for the group's November meeting: • Provide details of the street maintenance & operation funding gap • Provide the refined budget details of the capital project priorities for the 2009 legislative session • Provide draft proposals of the purpose, scope, and boundary of a Spokane Regional Transportation Benefit District and next formation steps • Agree upon the 2009 legislative session forward pathway for the Street Utility, including a current stakeholder assessment • Use a presentation on best practices to reach a unified transportation vision, plan, govemance and funding plan, establish a forward pathway • Agree upon the communication messages resulting from the meeting Statement made by Christine Psyk, Associate Director, EPA Region 10, Office of Water and Watersheds Spokane River Water Quality —Stakeholder Meeting September 26, 2008 Greetings, Thank you for coming We have a prepared statement for you today, and we will offer copies to anyone who would like'one. _ Today we are meeting to talk about the current status of work by the states of Washington and Idaho, and EPA, on actions to improve water quality in the Spokane River. Before I do that however, I want to acknowledge the dedicated people at Ecology who have done such a great job of developing the Spokane River TMDL. Even though we are here to talk about a course change, the solid work they accomplished in producing the TMDL is. • to be commended. I also want to apologize to all those dedicated stakeholders who were poised to take action to clean up the phosphorus entering the river. I regret that EPA's decision to change course will result in Ecology and others having to once again revise the TMDL. I also regret that the course change will mean delay of implementing actions to reduce phosphorus. Now to the task at hand. Many of you know that EPA has been heavily involved in the effort to improve water quality in the Spokane River, and, as you all know, we recently announced a significant change in course on the Idaho permits which then also affects the Washington TMDL. I will talk about why we decided to change course. But the purpose of this meeting is not only to talk about why EPA changed course but, more importantly, set the stage for moving forward. In fact, that is the primary goal of this meeting. To accomplish that goal, I believe it is necessary to tell you how and why EPA took the path it did originally and why we need to change course now. First, it is safe to say that the Lake Spokanedissolved oxygen problem is serious and complex. I think it is also appropriate to state that we have a collective goal which is•to . come up with a set of actions that protects the recreational fishery in Lake Spokane from harm due to diminished oxygen levels. From a regulatory standpoint, the problem facing Lake Spokane is one of the most complex issues many of us have ever worked on. Before I outline what we tried to do to address the problem and remedy the dissolved oxygen sags in Lake Spokane, I want to first note that we know what causes the problem: the growing conununities in the Spokane River watershed are discharging too much • phosphorus and other oxygen demanding pollution into the river, and it is depleting the oxygen level in Lake Spokane and results in nuisance algae growth. This, coupled with the fact that the river becomes a lake, results in a system that has very little capacity to absorb oxygen depleting pollutants. This problem is going to get worse over time unless wastewater treatment plants dramatically improve treatment of wastewater and discharge a cleaner effluent into the river that has a lot less phosphorus in it than it does today. Likewise, the public and other entities in the area that collectively contribute the nonpoint 1 load of oxygen depleting pollutants need to use conservation practices that result in less phosphorus and higher oxygen levels in Lake Spokane. The goals for water quality in Lake Spokane are set by the Washington state water quality standards, which were approved by EPA. The standard for dissolved oxygen in Lake Spokane and other lakes and reservoirs in Washington is very stringent. It requires oxygen levels almost indistinguishable from the natural condition. Nobody would argue against a goal that brings us almost to zero pollution. But to achieve an almost zero impact in a populated watershed like the Spokane is exceedingly difficult. You've all heard the question: "How clean is clean enough ?" T am sure many people here today have that question on their minds Before I go any further, I want to note that not all the news about the effort to clean up the Spokane River is bad news, despite what you may have in the newspaper. First, while there are.many legal and policy debates concerning these efforts, the extensive. scientific work.has been generally accepted by all involved, agencies and stakeholders alike. The model developed by Portland State University and used in decision - making has undergone extensive, external peer review by water quality experts.. There is no debate about the science behind the agency decisions on this project. Another piece of good news is what we have learned about new phosphorus control technologies. We now know that the latest technologies can drastically reduce. phosphorus to levels below what was previously believed to be technologically and economically feasible. The local communities have stepped up, studied the new treatment technologies, and are running pilot studies at their plants. The permits we were proposing in Idaho would have been among the toughest in the nation for phosphorus, six times lower than levels allowed in Chesapeake Bay. The Idaho communities had agreed to accept the challenge of those limits, and they should be conunended for that. While agreement from dischargers on effluent limits is not a pre - condition for moving forward with permits, it is. good when it happens because it reduces the risk of lawsuits which result in delays. So what happened? Why the change? The newspaper headlines said that "EPA made a mistake." What was the mistake that they are referring to? I want to outline the reason for our original position on this project and the reason for the change to that position. Four years ago, this process began with an effort by the.state of Washington to develop a TMDL for Lake Spokane. We recognized immediately, on first reading the 2004 draft TMDL, that the standard for Lake Spokane was extremely stringent. Many questioned whether was possible to meet. The cities along the river reacted to the stringency of the TMDL by requesting that Ecology consider a change to the standard. Ecology was opposed to a standards change prior to a comprehensive attempt to meet the standard. Nevertheless, Ecology held extensive discussions with the stakeholder community about all aspects of the TMDL, including efforts to devise a pollution trading mechanism, the delta management concept, 2 load of oxygen depleting pollutants need to use conservation practices that result in less phosphorus and higher oxygen levels in Lake Spokane. The goals for water quality in Lake Spokane are set by the Washington state water quality standards, which were approved by EPA. The standard for dissolved oxygen in Lake Spokane and other lakes and reservoirs in Washington is very stringent. IC requires oxygen levels almost indistinguishable from. the natural condition. Nobody would argue - against a goal that brings us almost to zero pollution. But to achieve an almost zero . • impact in a populated watershed like the Spokane is exceedingly difficult. Yqu've alt • heard the question: "Flow clean is clean enough ?" 1 am sure many people here today have that question on their minds Before I go any further,1 want to note that not all the news about the effort to clean up the Spokane River is bad news, despite what you may haveread in the.newspaper. First, while there are,many legal and policy. debates concerning these efforts, the.extensive, scientific work.has been generally accepted by'all involved, agencies and stakeholders alike. The model developed by Portland State University and used in decision- making has undergone extensive, external peer review by water quality experts.. There is no debate about the science behind the agency decisions on this project. Another piece of good news is what we have learned about new phosphorus control technologies. We now know that the latest technologies can drastically reduce. phosphorus to levels below what was previously believed to be technologicallyand economically feasible. The local communities have stepped up, studied the new treatment technologies, and are running pilot studies at their plants. The permits we were proposing in Idaho would have been among the toughest in the nation for phosphorus, six times lower than levels allowed in Chesapeake Bay. The Idaho communities had agreed to accept the challenge of those limits, and they should be commended for that. While agreement from dischargers on effluent limits is not a pre - condition for moving forward with permits, it is -good when it.happens because it reduces the.risk of lawsuits which . result in delays. So what happened? Why the change? The newspaper headlines said that 'TPA made a mistake." What was the mistake that they are referring to? I want to outline the reason for our original position on this project and the reason for the change to that position. Four years ago, this process began with an effort by tbe,state of Washington to develop a 1 - ti DL for Lake Spokane. We recognized immediately, on first reading the 2004 draft TMDL, that the standard for Lake Spokane was extremely stringent. Many questioned wlietherit was possible to meet. _ The cities along. the river reacted to the stringency of the TMDL by requesting that Ecology consider a change to the standard. Ecology was opposed to a standards change prior to a comprehensive attempt to sleet the standard. Nevertheless, Ecology held extensive discussions with the stakeholder community about all aspects of the TMDL, including efforts to devise a pollution trading mechanism, the delta management concept, 2 to provide some flexibility for Washington sources over an implementation period of 20 years. At the time, the path forward for that draft TMDL was highly uncertain. Meanwhile, our job at EPA was to re -issue three permits on, the Idaho side of the border. Regulations require that NPDES permits for point sources that can affect water quality in a downstream state have effluent limits that comply with the downstream state's water quality standards. So, for the Idaho permits, this means that EPA has to write the permits to ensure that the effluent limits in the permits comply with both Idaho water quality standards and Washington water.quality standards In attempting to comply with those regulations, we had a critical decision to make about the Idaho permits. Do we delay their issuance an unknown length of time until the Washington TivDL is complete, or do we find a way to set limits independent of the .TMDL? We chose to detach the Idaho permits from the TMDL and develop a set of permit limits that we believed would be protective of water quality in both Idaho and Washington. Lake Spokane was chosen as the point of compliance for both the Idaho permits and the Washington TMDL because it is the location in the watershed that is most sensitive to nutrients. So, while on different paths, both the Idaho permits and the Washington TMDL would be protecting the same most sensitive resource, Lake Spokane. Why did we do this? Several reasons: First, we had a job to do, and it was and is to issue permits to the cities in Idaho: Second, our permits program was very unsure about the schedule of the TMDL, given the legitimate questions about whether it was possible to achieve the standard. Third, we came up with a set of limits that required installation of state -of- the -art technology. Fourth, they would be the lowest phosphorus limits in the country. Fifth, they would result in Idaho having no measureable effect on Lake Spokane dissolved oxygen; specifically, modeling showed the effect was approximately 0.15 mg/L. And sixth, remarkably, the three cities agreed to these limits. EPA set effluent limits for the Idaho permits that are so low that the effect on dissolved oxygen in Lake Spokane would be too small to measure. Concurrently, this enabled Washington in their draft TMDL to allow pollution sources in the State of Washington to decrease dissolved oxygen concentrations by the amount allowed under Washington's water quality standard, which is mg/L. When EPA issued the Idaho permits for public comment, we received numerous comments that-took issue with the approach we used to interpret Washington's water .quality standard and the way we then set the effluents limits for the three point sources in Idaho. It was pointed out that we failed to fully take into account'the cumulative contribution of both the Washington sources and the Idaho sources, as required by the revised Washington.water quality standard. Taken together, the allocations for point sources and nonpoint sources in both states exceeded the .20 mg/L allowed by the standard. While the impact was predicted by the model to be too small to measure, the limits we proposed for the Idaho permits did have a mathematical impact on the DO of the lake 3 based on the modeling. Again, that impact was around 0.15 mg/1 (0.2 mg /1 is considered immeasurable). We viewed that impact a; being so small that Washington could consider it as virtually identical to natural background, which then allowed Ecology to develop its TMDL to reduce pollution in Washington and to give the 0.2 mg/1 to the sources in Washington. While we thought this was acceptable on policy grounds, our approach Left the door open to criticism that Idaho's im.measureable.impact of 0:15 mg/1, combined with an inuneasureable impact from Washington sources of 0.20 mg/l, would result in a combined impact that would be measureable. Simple addition would estimate the impact at 0.35 mg/1, but I would note here that we have never run the model with all the limits for point andnonpoint sources to estimate that precise, combined .impact. So we don't know the precise.impact of the proposed Idaho permits and Washington TMDL, but clearly the number would be higher than 0.2 'mg /I, and 0.2 mg/l is the allowable impact in Washington's standard. We felt that our low phosphorus limits would satisfy the intent of the standard. For us, it met the test of "clean enough ". For others, it did not meet that test and they mounted strong opposition on legal grounds during the public comment period. Many people. may think that comments they make to the government are not heard. This is not true. Public continents can really make a difference in what happens and does not happen in our environment. After a thorough review of public comment and extensive internal deliberation, we concluded that, from a legal perspective, we had erred in our interpretation of the Washington water quality standards by not considering the Idaho and Washington sources cumulatively in determining the effluent limits for the Idaho dischargers. Therefore, under the current standards, both the TMDL and the Idaho NPDES permits need to be revised so that, taken together, all sources in Washington and Idaho are accounted for and appropriate limits set that do not exceed the .20 mg/1 decrease in dissolved oxygen allowed under the Washington dissolved oxygen standard. At EPA, responding to public comments is an important job. In this case, the legal concerns about the cross- border pollution have led us ,to change course: What is the path forward? Frankly, we do not know what the final option will look like, but we still have three boxes to check off in our decision - making: the legal basis, the science, and the policy. Clearly, we need to change course on the legal basis for the Idaho permits and Washington TMDL. This part is straightforward: we must re- connect the Idaho and Washington sources in a single analysis that results in a combined impact less than 0.2 mg/1 in Lake Spokane. The science is also straightforward: We have a good, peer- reviewed model of the system. Instead of splitting the analysis into.Idaho and Washington impacts, «.e need to start running the model all the way from Lake Coeur d'Alene to Lake Spokane, and include all sources in those simulations.. The main issue on the science side is the workload of running the model, and we will need to be efficient in going about this work. 4 So, the legal and science aspects are fairly straightforward. The policy aspect, on the other hand, remains a complicated one. It is the same challenge we have all been dealing with for several years now. I would characterize that challenge as requiring us to grapple with tough questions on 6 topics: 1) Limits of technology: The standard pushes us beyond the capabilities of municipal treatment systems built to date. 2) Water quality trading: How can it be used to bridge the gap between what's technologically achievable and what the standard requires? 3) Regulatory flexibility: The difficulties in making water quality standards revisions. 4) The role of FERC licensing in TMDL development. 5) Principles and considerations for allocating loads between Idaho and Washington. 6) Agency resources for modeling. I listed the questions about the limits of technology first for a reason. At this point, the available data indicate that if all the cities along the river installed state -of -the -art treatment, the river would still exceed the 0.2 mg/1 of oxygen depletion in Lake Spokane. This situation looms large over this project, and we need to find a path forward that addresses this challenge and enables us to move forward with the TMDL and the permits so that cleanup can commence and phosphorus inputs reduced. We are open to any ideas that move us forward and bring improvements on the ground as soon as possible. Thank you for your attention, and thank you for your efforts to bring cleaner water to Lake Spokane. 5