2003, 03-27 Special Meeting Minutes CITY OF SPOKANE VALLEY
City Council Minutes
Special Meeting
March 27, 2003
Mayor Michael DeVleming called the regular meeting of the Spokane Valley City Council
to order at 6:05 p.m.
Councilmembers present: Mayor Michael DeVleming, Deputy Mayor Diana Wilhite,
Councilmembers Dick Denenny, Mike Flanigan, Richard Munson, Gary Schimmels, and
Steve Taylor.
Staff present: Interim Manager Lee Walton, Interim Deputy Manager Stan McNutt,
Interim Attorney Stanley Schwartz, Interim Community Development Director James
Harris, Interim Current Planning Manager Kim Lyonnais, Interim Long Range Planning
Manager Greg McCormick, Interim Long Range Planner Scott Kuhta, Interim Parks &
Recreation Director Bill Hutsinpiller, Interim Accounting Manager Dan Cenis, Interim
Accounting Technician Ellen Avey, and Interim Administrative Assistant Karin Bosworth.
Pledge of Allegiance: Mayor DeVleming led the pledge of allegiance.
Roll Call: Interim Administrative Assistant called roll.
Approval of Agenda: Mayor DeVleming requested that an executive session be added
after Item 13 and Interim Attorney Schwartz asked that Item 11(E) 2 be combined with
Item 11(A) for action after Item 13. Councilmember Flanigan moved and Deputy Mayor
Wilhite seconded that the Agenda be approved as amended. The motion carried
unanimously.
Council Reports: Mayor DeVleming reported that the April 1, 2003 Council meeting will
be held in the new City Council Chambers.
Councilmember Denenny reported that he and Deputy Mayor Wilhite just returned from
Washington, DC. and a written report will be submitted later relating to contacts with state
and federal legislators.
Councilmember Schimmels reported that three members of City staff attended the Valley
Chamber"Open for Business" tradeshow held on Wednesday, March 26, 2003.
Councilmember Flanigan announced events in addition to the tradeshow during the City
incorporation celebration: Valley Chamber of Commerce community breakfast, 7:00 a.m.
March 28, 2003 at the Valley Doubletree Hotel; Spokane Valley talent show 7 p.m. March
28, 2003 at Trent Elementary; Firefighters Wine Tasting and Silent Auction 6:30 p.m.
March 28, 2003 at Decades; and the Mayors Ball is Saturday, March 29, 2003. He
Council Minutes,March 27,2003
Approved by Council May 13,2003
commended Pennie DeVleming for her phenomenal efforts with the planning and
preparations for the Ball.
Mayor DeVleming read a proclamation proclaiming April 6—April 12, 2003 as "Wishing
Star Reach for the Stars" Week.
Public Hearing: Mayor DeVleming opened the Public Hearing at 6:14 p.m. for the
purpose of receiving public comment on City of Spokane Valley proposed 2003 budget,
March 31 to December 31, 2003, and reviewed the procedure to be followed during the
hearing.
Interim Finance Director Noack gave a presentation on the proposed budget, explaining
various funds and department items contained in the document. Noack reviewed current
staffing levels and proposed staffing once recruitment of department heads is complete.
The preliminary budget submitted totals $22,512,416 for all funds with the two largest
expenditures being for law enforcement services and employee salaries and benefits. The
revenue stream will begin with the transfer of County road tax money approximately May
10, 2003 and state shared revenue and sales/gambling tax distribution for the second
quarter at the end of June. Noack presented some proposed amendments to the preliminary
budget that he recommends be included in the budget adoption.
Noack and Finance staff responded to questions of the Council relating to expenditures to
date, expenditure and revenue assumptions used in preparation of the budget, department
input and needs, financial software that will give staff the ability to provide reports of
expenditure and revenue estimates versus actual, interfund services, when contract
expenditures will be billed by Spokane County, the fact that no property taxes will be
collected by Spokane Valley until the year 2004 and the possibility of a loan from the
Street Fund until property tax revenue stream begins, and City population and census
information used for the state shared per capita revenue.
Mayor DeVleming opened the hearing for public comment.
Tony Lazanis, 10625 East Trent, expressed concern about the cost for animal control
services, saying that the public should be given an opportunity to speak to this issue as he
is not sure the residents want to have this kind of money spent; the residents need to know
about the animal laws and what they mean.
Mayor DeVleming closed the Public Hearing at 6:45 p.m.
Agenda Bill No. 2003-092,Adoption of 2003 Budget(Ordinance No. 62)—Interim
Administrative Assistant introduced Ordinance No. 62 by reading the title. Councilmember
Taylor moved and Councilmember Munson seconded to suspend the rules for two readings
of this ordinance, advance to second reading and adopt Ordinance No. 62, Adopting a
Budget for the Period March 31, 2003 through December 31, 2003; Establishing an
Arterial Street Fund; Establishing a Sewer Fund; Establishing an Equipment Rental &
Replacement Fund; Establishing a Risk Management Fund; Establishing Appropriations of
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Approved by Council May 13,2003
Funds for 2003; and Establishing Positions and Salary Schedules for 2003, with
amendments as proposed by staff. Interim Attorney Schwartz explained that this ordinance
establishes the 2003 budget and creates a number of funds for appropriations made of
approximately $22,000,000. Positions and salary schedules in the budget are required by
law and must be submitted to the Office of the State Auditor.
Deputy Mayor Wilhite commended the staff for putting together an excellent budget and
noted that all of the money in the budget doesn't have to be spent.
Responding to Councilmember Taylor's question there was brief discussion of salary
ranges included in this ordinance and the desire to be competitive in the job market but
also to have comparable starting salaries for this region, content of job descriptions for the
various positions and need for Council to approve, and state law relating to functions,
powers, and duties for establishing job descriptions and rate of pay.
The motion to adopt Ordinance No. 62 carried unanimously.
Agenda Bill No. 2003-090 (Adult Entertainment Permit Moratorium, Ordinance
No. 61): Interim Administrative Assistant introduced Ordinance No. 61 by reading the
title. Councilmember Flanigan moved and Councilmember Munson seconded to suspend
the rules, advance to second reading, and adopt Ordinance No. 61, Establishing a
Moratorium on the Filing and Acceptance of Applications for Development Permits or
Land Use Approvals Associated with Adult Entertainment and Adult Establishments.
Interim Attorney Schwartz said this ordinance prohibits the receipt of applications for new
adult establishments for a six-month period to allow staff opportunity to review the County
code to determine what regulations are in the best interests of Spokane Valley. There was
brief discussion as to this moratorium and regulations for existing establishments. The
motion carried unanimously to adopt Ordinance No. 61.
Agenda Bill No. 2003-070, Comprehensive Plan (Ordinance No. 52). Interim
Administrative Assistant read Ordinance No. 52 for second reading. Councilmember
Taylor moved and Councilmember Munson seconded to adopt Ordinance No. 52,
Adopting the Spokane County Comprehensive Plan, Capital Facilities Plan, and Maps as
the Interim Comprehensive Plan of the City. Interim Attorney Schwartz said that this
ordinance includes three amendments that were reviewed by Council at study session.
Dick Behm, 3626 South Ridgeview Drive, speaking on behalf of the Spokane Valley
Business Association said their concern is the South Valley Couplet and spot zoning,
primarily in the Dishman Hills area, as well as mass transit and light rail. These are all
issues that should be considered as the City develops its own comprehensive plan.
Michael Hamilton, a Dishman Hills Association Member, said this area is part of a
statewide system of natural conversation areas. This group has been very active during the
County comprehensive plan development and plans to stay involved during the City
process. They are concerned with the domino theory if one piece of land is reclassified
and the effect that has on adjacent properties, and there is concern about the proposed
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Approved by Council May 13,2003
density designations south of Appleway. Interim Community Development Director
Harris noted that these comments are well taken but are more pertinent to the next
ordinance on the agenda.
The motion to adopt Ordinance No. 52 carried unanimously.
Mayor DeVleming recessed the meeting at 7:25 p.m. The meeting resumed at 7:34 p.m.
Agenda Bill No. 2003-072,Phase 1 Zoning Map (Ordinance No. 54) Interim
Administrative Assistant read title of Ordinance No. 54 for second reading.
Councilmember Flanigan moved and Councilmember Munson seconded to adopt
Ordinance No. 54 Adopting by Reference the Spokane County Zoning Map(s) as the
Interim Zoning Map(s) of the City. Interim Attorney Schwartz said that this ordinance
incorporates some changes to the present Spokane County zoning map that were identified
at the public hearing on this subject. Staff responded to questions relating to the timing
and process for addressing other problems that have been identified and the need to review
on a regular basis. The motion carried unanimously.
Agenda Bill No. 2003-036, Adult Entertainment Regulations (Ordinance No. 36):
Interim Administrative Assistant read the title of Ordinance No. 36 for second reading.
Councilmember Flanigan moved and Councilmember Munson seconded to adopt
Ordinance No. 36 Adopting by Reference Chapter 7.80 Entitled"Adult Entertainment
Establishments" of the Spokane County Code. Interim Attorney Schwartz said that this
ordinance provides regulations for activity within existing establishments and recommends
adoption. The motion carried unanimously.
Agenda Bill No. 2003-089, Essential Public Facilities (Resolution No. 03-023).
Councilmember Taylor moved and Councilmember Flanigan seconded to adopt Resolution
No. 03-023 Stating the City's Intent to Become a Party to the Interlocal Agreement
Between Spokane County and Cities and Towns Within the County Relating to the Siting
of Essential Public Facilities. Interim Attorney Schwartz said that state law requires all
cities to make provision for siting of essential facilities and this resolution states the City's
intent to include provision for such facilities in its comprehensive plan and to join with
other cities in the County for siting of these facilities.
Tony Lazanis, 10625 East Trent, questioned if the City will have to create our own law for
siting these facilities and was advised that this issue will be addressed by the City Planning
Commission.
The motion carried unanimously to adopt Resolution No. 03-023.
Agenda Bill No. 2003-094, Intent for Agreement Re: Solid Waste Management
(Resolution No. 03-024). Councilmember Taylor moved and Councilmember Flanigan
seconded to adopt Resolution No. 03-024 Stating the City's Intent to Enter into an
Interlocal Agreement for the Regional Solid Waste Management System. Interim Attorney
Schwartz said that the City is negotiating with City of Spokane and Spokane County to
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Approved by Council May 13,2003
participate in the regional solid waste system, and since the agreement is not yet ready, this
resolution states the City's intent to enter into the agreement. The motion carried
unanimously.
Agenda Bill No. 2003-091, Special Legal Counsel—Peter Witherspoon (Agreement
No. CO3-26). Councilmember Munson moved and Councilmember Denenny seconded to
authorize the Interim City Manager to execute Attorney-Client Fee Contract No. CO3-26.
Interim Attorney Schwartz said that since his services have been retained by the Public
Facilities District for the Mirabeau Point project, the City needs special counsel to
represent its interests. Peter Witherspoon will represent the City well during the process
relating to ownership issues in Mirabeau and can also help during bond financing for this
project. There was brief discussion of fees included in this agreement and whether the fees
are payable from the bond proceeds. The motion carried unanimously.
Agenda Bill No. 2003-093,Authorize Execution of Bond Counsel Engagement Letter
for Limited General Obligation Bonds, Mirabeau Center: Interim Attorney Schwartz
said that as the City may be asked to participate in issuing bonds for the development of
CenterPlace at Mirabeau Point, it is necessary to appoint bond counsel to represent the
City. Three firms have submitted letters of interest to serve as Spokane Valley bond
counsel for this project—Lukins & Annis, Preston, Gates & Ellis, and Foster, Pepper&
Shefelman, and two of the firms have representatives at this meeting.
Michael Ormsby, Preston, Gates & Ellis, said that he had the good fortune to work with the
City as bond counsel for the tax anticipation note. Preston, Gates &Ellis has a great deal
of experience serving public entities and school districts and would appreciate the
opportunity to again serve as bond counsel for this project.
Roy Koegen, Lukins & Annis, said that his firm has been representing governments in
finance matters for 35 years. He has been involved in discussions for this project since
November representing Spokane County and he thinks that Spokane Valley's interests are
identical to the County's. His firm has the experience to represent the City and he does not
believe that there is any conflict of interest.
Council agreed that there will be no action on this item until after executive session.
City Manager & Staff Reports: Interim Deputy Manager presented a draft Information
Services Agreement with Spokane County. The City is still in negotiation on this
agreement that we want to be crafted to assure that we will be able to take advantage of the
technology to integrate all of the hardware, software and systems necessary to provide a
web-based permitting system for the public.
Public Comments: Tony Lazanis, 10625 East Trent, expressed concern about the
ownership of Mirabeau Point, since it appears there may be three or four owners involved.
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Approved by Council May 13,2003
s �
Executive Session Mayor DeVlemmg announced that Council will go into executive
session for approximately 30 minutes to discuss legal issues, with action following the
executive session
The meeting recessed to executive session at 8 19 p m with Council retiring to a
conference room
The meeting reconvened from executive session at 8 40 p m
Councilmember Denenny moved and Councilmember Flanigan seconded that Council
select the firm of Preston, Gates & Ellis as bond counsel for the Mirabeau CenterPlace
protect There was beef discussion of the need to have bond counsel that has the most
knowledge of the project and also the need to have counsel that does not have a
relationship with the County The motion carried by majority vote with four aye votes—
Mayor DeVleming,Deputy Mayor Wilhite, Councilmembers Denenny and Flanigan, and
three nay votes—Councilmembers Munson, Schimmels and Taylor
Mayhor DeVleming announced that Council will go into executive session for
approximately 20 minutes to discuss personnel issues and no action to be taken after
executive session
The meeting recessed to executive session at 8 43 p m
The meeting reconvened from executive session at 9 07 p m
There being no further business, the meeting adjourned at 9 08 p m
ATTEST APPROVED
C2L11-7-c0.601.11--) I I
Interim A t Mayor Michael DeV1- ing
61‘4. deu-L
Council Minutes March 27 2003 6
Approved by Council May 13 2003