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2014, 09-16 Study Session MINUTES SPOKANE VALLEY CITY COUNCIL REGULAR MEETING STUDY SESSION FORMAT Spokane Valley City Hall Council Chambers Spokane Valley,Washington September 16,2014 6:00 p.m. Attendance: Councilmembers Staff Dean Grafos,Mayor Mike Jackson, City Manager Arne Woodard, Deputy Mayor Mark Calhoun, Deputy City Manager Bill Bates, Councilmember Cary Driskell, City Attorney Chuck Hafner, Councilmember Erik Lamb, Deputy City Attorney Rod Higgins, Councilmember Mike Stone, Parks & Recreation Director Ed Pace, Councilmember John Hohman, Community Development Dir. Ben Wick, Councilmember Eric Guth, Public Works Director Mike Basinger, Senior Planner Carolbelle Branch, Public Information Officer Chris Bainbridge, City Clerk Mayor Grafos called the meeting to order at 6:00 p.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. Mayor Grafos announced, and invited everyone to that the Appleway Groundbreaking set for 4:00 p.m. this Thursday; and to the Sullivan Bridge/Park Improvements Dedication set for September 25, at 3:30 at Sullivan Park. 1. Draft Legislative Agenda—Mike Jackson, Briahna Taylor City Manager Jackson introduced lobbyists Briahna Taylor and Alex Soldano, both of Gordon Thomas Honeywell, to discuss legislative issues. Mr. Soldano briefed Council on the Legislature's Operating Budget, which he explained is where local state shared revenues come from; he said there are several pressures since the recession which have become worse with recent court decisions, such as the McCleary decision whereby the State was ordered to fully fund basic education by 2018 because it was determined the State wasn't doing enough for basic education, and to have an approved plan by the end of the 2014 legislative session; he said a plan was not passed and the Supreme Court of Washington determined that the State was in contempt, but would wait to impose sanctions until after the end of the 2015 Legislative session when the Court would review what the legislature did; and based upon that review, would determine whether sanctions would be levied. Mr. Soldano explained that all this means a drastic shortfall with agency directors being directed to include a 15% budget reduction; which also means local state shared revenues, including marijuana, liquor, and streamlined sales tax would be hit hard when it comes to sharing those revenues with municipalities. Ms. Taylor went over the capital funding segment of the State's budget, which she explained includes brick-and-mortar construction; adding that if some of the proposed school regulations such as class size pass, an additional $2.5 million would be required to be set aside for school construction. Ms. Taylor also discussed the request for funding assistance with the Appleway Trail Project, and recommended keeping the request to a limit of$1 million, as she examined similar past year's legislative requests from various entities, and it appeared the maximum request allocated was $1 million. Ms. Taylor went over the transportation budget portion of the overall state budget, and said there is little available revenue; that the conversation focused on whether to adopt individual increases, or a packet, and said most negotiations Council Study Session 09-16-2014 Page 1 of 5 Approved by Council: 10-14-2014 have stalled with no real progress. She mentioned the Governor launched a task force to examine climate change and a part of that is proposing either a cap and trade system, or a carbon tax, but either way the price of gasoline would be affected and an increase would make it more difficult for everyone to come to an agreement on the transportation revenue package; she noted a smaller gas tax was proposed of three to four cents to fund maintenance and operation, adding if the package were to pass, there would be no revenue available to fund projects, but only to fund maintenance and operation of state facilities; she noted there was also discussion about the impacts of freight rail with emphasis on safety, capacity and quality of life. Mr. Soldano added that rail issues are very controversial state-wide; and he mentioned Spokane Valley's participation on the ad hoc freight rail committee, which was organized by the Association of Washington Cities (AWC); and he said that AWC will be carrying that discussion forward and putting their proposal in a report to include all governments' concerns about what can be done including the amount of traffic generated, as well as safety and quality of life issues. Discussion moved to code enforcement costs and cities having a first lien authority; with Ms. Taylor explaining that the proposal has not advanced; that she met with key legislatures to discuss the proposal's prospects and the feedback from legislators was to encourage Spokane Valley to look for an alternative proposal as having a first priority lien is not a viable option as it is opposed by the community banks, adding that there also seems to be a general dislike for the current nuisance abatement law. Ms. Taylor recommended advancing a proposal that allows the city to make progress but doesn't advance the first priority lien, which means the City and the property owner would enter into an agreement for mitigation. She also mentioned the idea of having the County Assessor collect those costs through property tax notifications. Mayor Grafos noted that just including our bill with the county assessor's tax bill would not be legally binding. Ms. Taylor mentioned that some cities that operate a utility have more advantage in collecting mitigation payments. City Attorney Driskell mentioned there is a provision for dealing with the situations where the area is unfit for human habitation, but those are not the majority of cases and declaring a building unfit is only part of the solution. Ms. Taylor said that AWC is still working on their legislative agenda and she asked if Council would like to add anything. There were no immediate suggestions. Ms. Taylor mentioned the legislative issue dealing with limiting the number of indigents per public defenders, and said now that public defenders are mandated to handle fewer cases, other lawyers must be hired which represents another hit on municipalities; she said AWC is seeking additional funding for cities to meet these new caseload standards. The topic of marijuana legislation was mentioned and of the desire of some cities to ban its sale and production; and Ms. Taylor said there is a desire not to have those bans pre-empted by state law; adding that a way to have local sharing would be in the reconciliation of medical and recreational marijuana statutes. Ms. Taylor said there is no specific proposal yet. Ms. Taylor mentioned that another issue AWC is considering is the lifting of the 1% property tax cap; she said she realizes Spokane Valley does not take the 1%, but many cities do and some find even with the 1% increase, it is not enough to keep up with the cost of providing services, so AWC will be asking the legislators to replace the 1% cap with a growth inflator having a range between 2.5 and 2.8%. Ms. Taylor noted that the AWC has not yet finalized their legislative agenda. Mr. Jackson asked Council if the preference is to simply support the AWC agenda to the extent that it benefits Spokane Valley, or to enumerate some items on the Council's own agenda; and if Council prefers, he said he would move forward to articulate the capital request for Appleway Trail to fund a portion of Evergreen to Corbin and have public works come up with a more specific number. Councilmembers nodded in approval. Mr. Jackson said we can have a future discussion on code enforcement costs and hopefully by then, AWC would have their finalized legislative agenda. Deputy Mayor Woodard suggested encouraging the reconciliation of medical and recreational marijuana regulations and that medical marijuana should be regulated through a pharmacy. Mr. Jackson said staff can research that for future discussions. Council Study Session 09-16-2014 Page 2 of 5 Approved by Council: 10-14-2014 Councilmember Wick asked about who has committee appointing rights for the PFD (Public Facilities District), and suggested exploring how to get more direct input, by perhaps changing the regulations to include the top three largest populations. Mr. Jackson said staff will continue researching these issues and bring this item back to Council again in early November. 2. Review of Library Services—Sonia Gustafson, Library Managing Librarian Via her PowerPoint presentation, Managing Librarian Sonia Gustafson gave a presentation on the various aspects of the Spokane County Library District services, including some general background information on the establishment of the library district and how it has changed over the years, and the District's programs and priorities, including programs such as Developing Young Learners, Explore and Discover, Supporting Job Seekers and Local Businesses, and Community Involvement. Council extended thanks to Ms. Gustafson for sharing her information about the library services. 3. Marijuana Abuse Awareness—Linda Thompson, Director Greater Spokane Substance Abuse Council Ms. Thompson shared a PowerPoint presentation to cover issues such as marijuana characteristics, acute and long-term effects, potency, and highlights from the Health Youth Survey released March, 2013 showing statistics concerning student participation in drug and alcohol use as well as their perception of such use. Ms. Thompson also gave some examples about alcohol and drug use in advertising with use being associated with being popular and fun. After the PowerPoint, there was discussion concerning ideas such as community partnerships to advocate against all abuses. Council thanked Ms. Thompson for her presentation. Mayor Grafos called for a recess at 7:44 p.m., and he reconvened the meeting at 7:52 p.m. 4. Community Development Block Grant(CDBG)Proposed Projects—Mike Basinger Economic Development Coordinator Basinger explained that Spokane Valley is a member of the Spokane County Community Development Block Grant Consortium, that each year the Federal Department of Housing and Urban Development provides CDBG entitlement funding to Spokane County and Spokane Valley receives a guaranteed 20% set-aside, with this year's funding estimated at $270,000 for eligible projects. Mr. Basinger explained that to be eligible, a project must be located in residential, low to moderate-income target areas, and the project must be ranked as a "high priority" in Spokane County's Consolidated Plan. This year's deadline, Mr. Basinger noted, is November 10, 2014; projects in the past included sewer projects, and currently the funding is used for sidewalk projects; he said according to a census survey, Greenacres is no longer eligible as a low and moderate income track, adding that he keeps track of those annual surveys to make sure our projects will remain on track. Mr. Basinger said there are two proposed projects: (1) the Seth Woodard Elementary School sidewalk improvement project which does not require purchase of any right-of-way; and (2) Park Road/Marietta to Buckeye, Sidewalk Improvement Project, which would require us to purchase right-of-way, and for such a project, we would need to relocate utilities and trees. Mr. Basinger recommended moving forward with the Seth Woodward Project for the increased amount of $300,000; said he would like to work with the public works department to make sure to get this to the County with good, solid estimates by the November 10 deadline. Mr. Basinger said the sidewalks could be constructed in 2015. Deputy Mayor Woodard said the funding level was increased this year and as soon as he receives those figures he will let Mr. Basinger know; said we want to make sure we don't underfund a project; and he agrees with the idea of trying to apply for more; and said the area is in dire need of sidewalks. There was Council consensus to move this forward. 5. Parks Capital Projects—Mike Stone Parks and Recreation Director Stone explained that during the annual budget process, staff have the opportunity to request capital projects; he said there were several projects budgeted for 2014 and some Council Study Session 09-16-2014 Page 3 of 5 Approved by Council: 10-14-2014 projects which were not included in the 2014 budget, including the Appleway Trail Phase 2A, which funding he explained, is being taken from the Parks Capital budget. Mr. Stone said that due to some unanticipated circumstances and cost estimates that have changed, several capital projects for 2014 are currently underfunded; and that some projects scheduled for 2014 must be rescheduled in part or in whole,to 2015; and that the impact to the 2014 budget will necessitate that budget being amended. Mr. Stone explained the change in expenditures for the projects as listed on his revised spreadsheet; that the volleyball courts increased cost was due in part to going through the public master planning process, as well as acquiring a topographical survey of the park, and that the sand was much more expensive than anticipated, plus contingency and sales tax, all resulting in a need to amend the 2014 budget by $36,200 based on estimates, adding that he will have further information after tomorrow's bid. For the Edgecliff picnic shelter, Mr. Stone said demolition of the older shelter was not included, nor was the electrical cost including lighting, and the ADA (Americans with Disability Act) accessible path; and Mr. Stone explained about the cost associated with purchase and shipping of a pre-engineered kit, site work for turf repair, sod repair, concrete walkway, and having the shelter meet electrical standards so that plugging in a coffee maker as well as a crock pot would not cause electrical outages. Discussion ensued regarding the cost of the shelter, with Deputy Mayor Woodard stating that it seemed to be very high, and questioning why we would get a pre-engineered kit shipped to us instead of having the shelter built by a local construction company. Director Stone said the intent of tonight's discussion is to demonstrate how we got to the $116,000 by starting with the shelter and working through all those costs; and said discussion can continue further should Council feel the expenditures are too high. Concerning the Discovery Playground, Mr. Stone explained that it was completed within budget and there were available funds for a shade structure to try to cover the slide, which he said is made out of concrete and rock and which gets hot; and said he suggests postponing that project until next year. For the City entry signs, Mr. Stone said it has been a challenge to find a suitable site for our second gateway project and that staff is still researching some alternatives; he said the three park signs are based on the design of the gateway sign, but modified to use recycled materials to reduce cost and minimize maintenance; and said park signs will be made for Greenacres; and that the signs have fallen in disrepair and need to be replaced for Terrace View and Brown Parks. Mr. Stone stated that it was discovered that Edgecliff sewer was never connected when we incorporated, although it was assumed it had been; that we are required to connect and a consultant has been hired; adding that a contractor will start next week and make sure all our facilities are connected. Mr. Stone noted that for the Old Mission Trailhead, our portion includes paving the parking stalls, and some concrete and improvement work; and said that the Appleway Trail Phase 2A groundbreaking is scheduled for Thursday, and that these two projects, Appleway Trail and Mission Trailhead,came about mid-year so they will also be included in the budget amendment. Mr. Stone said it is up to Council on where we go from here on these projects. In response to Mayor Grafos' question about signs for the Mission Trailhead, Mr. Stone said that the project includes signs, paving, curbing, sidewalks, and that the $25,000 will cover the cost of the benches and drinking fountain, and he expects it will be a first class addition to that area. 6. Care of Stormwater Swales—Eric Guth Public Works Director Guth, through his PowerPoint presentation, gave some history on the City's use of swales, including who builds them and where they are placed, maintained and protected; he went over the basics of the function of swales, and showed some swale examples, such as the one on Trent and Pines which is maintained by Washington State Department of Transportation, and the swale on Mission Avenue, which is City owned and maintained. Council Study Session 09-16-2014 Page 4 of 5 Approved by Council: 10-14-2014 7. Advance Agenda—Mayor Grafos Councilmember Pace suggested continuing with the drug and alcohol abuse presentation by having a presentation from the Police Department. 8. Information Only: Greater Spokane. Inc. Quarterly Report was for information only and was not reported or discussed. 9. Council Comments—Mayor Grafos Councilmember Pace suggested embracing a vision of zero tolerance for our city and working on specific policies and programs. 10. City Manager Comments—Mike Jackson City Manager Jackson announced that Sunshine's new transfer station is scheduled to be opened November 17 and that staff is moving ahead to develop and advertise the educational campaign, and has hired MDI Company to draft a marketing plan, which should be finalized within the next several days and which will be public about two to three weeks prior to opening; he said staff is in the process of reviewing the comments from the Department of Ecology on the solid waste and hazardous waste plan, and will schedule time to come back with a revised version of the plan; and said the collection aspect with Waste Management is being negotiated, and all aspects are moving forward. 11. EXECUTIVE SESSION: Potential Real Estate Acquisition; Review Performance of a Public Employee It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn into executive session for approximately ninety minutes to discuss potential real estate acquisition and to review the performance of a public employee, and that no action would be taken upon return to open session. Council adjourned into executive session at 8:59 p.m. At approximately 10:30 p.m., Mayor Grafos declared Council out of executive session, at which time it was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. AT S '• Dean Grafos,Ma or • .a : y !� Christine Bainbridge, City Clerk — Council Study Session 09-16-2014 Page 5 of 5 Approved by Council: 10-14-2014 ITEM #5 - REVISED SPREADSHEET CITY OF SPOKANE VALLEY, WA 8/13/2014 2014 Budget Amendment and 2015 Budget 9/10/2014 Fund#309 -Park Capital Projects 9/16/2014 2014 Budget As As 2015 Adopted Amendment Amended Budget Revenues Investment Interest 309.309.000.361.11.00 500 0 500 500 Contributions and donations 309.309.000.367.11.00 0 500 500 0 Transfer-in -#001 309.309.000.397.00.10 192,500 55,000 247,500 100,000 Transfer-in -#312 309.309.000.397.00.10 0 1,452,100 1,452,100 0 Transfer-in -#103 309.309.000.397.00.10 0 50,000 50,000 0 Total revenues 193,000 1,557,600 1,750,600 100,500 Expenditures I Capital 309.309.000.594.76.61.00 - Sand volleyball courts (2)at Brown's Park 40,000 36,200 76,200 0 - Edgecliff picnic shelter 65,000 (56,000) 9,000 106,450 - Discovery Playground equipment 50,000 1,400 51,400 0 - Shade structure at Discovery Playground 15,000 (15,000) 0 38,000 - City entry sign 70,000 (70,000) 0 70,000 - Park signs (3) 22,500 0 22,500 0 - Edgecliff sewer connection 0 13,000 13,000 0 - Old Mission Trailhead 0 55,000 55,000 0 - Appleway Trail- Phase 1 0 1,502,100 1,502,100 0 - 3 sand volleyball courts at Browns Park 0 0 0 100,000 - Pocket dog park 0 0 0 75,000 - Mission Trailhead landscaping (Fritz Wolfe) 0 0 0 25,000 Total expenditures 262,500 1,466,700 1,729,200 414,450 Revenues over(under) expenditures (69,500) 90,900 21,400 (313,950) Beginning fund balance 352,779 > 352,779 `. 374,179 Ending fund balance 283,279 374,179 60,229 2015 GORDON THOMAS HONEYWELL GOVERNMENTAL AFFAIRS To: Spokane Valley City Council From: Briahna Taylor & Alex Soldano, GTHGA Re: What to expect in 2015 Transportation Transportation Revenue Package in 2015-? Since the 2014 legislative session concluded, little has occurred on a transportation revenue package, although most stakeholders still desire a $10 billion transportation investment. There are some rumors about a 3-4 cent, maintenance-only transportation revenue package. At this point,the prospects of a revenue package and what it might look like remain unknown. Rail Safety Issues/Grade Separation Since the end of the 2014 session, rail issues have been a large portion of the transportation conversation. Increased rail traffic for coal and oil trains led to the creation of an ad hoc rail committee organized by the Association of Washington Cities. The purpose of this committee is to identify the needs of local communities in light of increased rail traffic across Washington State. Spokane Valley has been an active participant in these conversations and will continue to participate in the rail transportation discussion as it moves forward. Governor's Climate Change Initiative Another new dynamic in the transportation revenue package conversation is the Governor's Executive Order issued at the end of April creating a task force to address carbon pollution reduction and clean energy action. Click here to view the Executive Order &task force. There are many interest groups that believe this Executive Order will lead to the Governor proposing a cap &trade system or a carbon tax. Operating Budget Next session, the Legislature will develop a 2015-17 Operating Budget (July 1, 2015-June 30, 2017). For 2015- 17, the state is expected to have $2.4 billion more than what was in the 13-15 budget. However, even with this new revenue, an additional $700-800 million will be needed to fund increasing caseloads/costs of current programs. Additionally, $1.2-$2 billion will need to be invested in K-12 education to respond to the McCleary Supreme Court decision. Update on McCleary: In April, the Legislature submitted a report to the Supreme Court outlining their investments made in education thus far. The plaintiffs in the case submitted a request to the court asking the court to hold the Legislature in contempt for not providing adequate funding/an adequate plan to fund education by 2018. The court reviewed the matter in September, and ruled that the Legislature was in contempt of court for not presenting an adequate plan by the end of the most recent session. The Court, however, decided to defer sanctions on the Legislature until after the 2015 session, giving them one more chance to adhere to the court 1201 Pacific Ave. Suite 2100 203 Maryland Ave.. NE Tacoma. WA 98401 www.gth-gov.com Washington,DC 20002 Phone: (253)620-6500 Phone: (202)544-2681 Fax: (253) 620-6565 Fax: (202)544-5763 order before punishment is ordered. Because this is such an unprecedented situation, it is not clear what type of punishment the Court may give out if legislators don't fully comply in 2015. What does this mean for cities? In recent years, cities have seen a steady decline in state-shared revenue distributions (i.e. liquor revenues and the PWAA were both swept). Many legislators throughout the state are indicating that, because of McCleary,this trend is likely to continue. In light of this, AWC and others are beginning to pose the question: how can cities do things differently?What can we ask for from Olympia that will be helpful? Some emerging ideas have including removing the 1% property tax cap and replacing it with a growth factor; or instituting fiscal home rule where the city can raise revenue locally, but also control its obligations locally. Capital Budget The exact capacity of the Capital Budget won't be determined until more decisions are made about the operating budget. However, as a rough estimate, $1.8 billion will be available in the 2015-17 Capital Budget. Referendum Effort to Fund Stormwater, Water Supply, and Flood Mitigation: There is an emerging proposal to fund flood control/mitigation, stormwater, and water supply through a referendum measure (a bill that passes the Legislature, but then has to be approved by the voters).The revenue source for this proposal is yet to be determined. Voters previously approved water-related referendums in 1967, 1972, and 1979.