2016, 05-17 Study Session MINUTES
SPOKANE VALLEY COUNCIL
MEETING STUDY SESSION
Spokane Valley City Hall Council Chambers
Spokane Valley, Washington
May 17, 2016
Attendance:
Councilmembers Staff
Rod Higgins,Mayor Mark Calhoun,Deputy City Manager
Arne Woodard,Deputy Mayor Cary Driskell, City Attorney
Ed Pace, Councilmember Erik Lamb,Deputy City Attorney
Sam Wood, Councilmember Chelsie Taylor, Finance Director
Bill Gothmann, Councilmember Pro Tem Mike Stone,Parks &Rec Director
John Hohman, Comm&Eco. Dev. Director
Carolbelle Branch, Public Information Officer
Christine Bainbridge, City Clerk
Mayor Higgins called the meeting to order at 6:00 p.m.
ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present.
AMENDED AGENDA: It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to
approve the amended agenda.
ACTION ITEMS:
1. Motion Consideration: Designating an Acting City Manager—Mayor Higgins
Mayor Higgins explained that the new item on the agenda tonight is a motion to designate Mr. Calhoun as
the Acting City Manager. It was moved by Deputy Mayor Woodard and seconded to designate Deputy City
Manager Mark Calhoun as the Acting City Manager, effective May 18, 2016, to perform the duties of the
City Manager until such time as a permanent City Manager is selected or November 18, 2016, whichever
comes first;and to authorize the Mayor to finalize and execute the attached "Letter Agreement for Spokane
Valley Acting City Manager" on behalf of the Council. City Attorney Driskell briefly explained the
background of events with the former City Manager. Deputy Mayor Woodard said he assumes the
timeframe could be extended if necessary for an additional sixty days by vote if a permanent City Manager
isn't hired by November 17. Mr. Driskell said that the draft contract is for six months, but there could be
circumstances beyond Council's control in hiring a permanent city manager, and this allows for flexibility.
Councilmember Pace asked if"interim" is synonymous with "acting" and Mr. Driskell said he not certain
those two words would always be the same, but it is Council's desire to have the functions of the city
manager without necessarily naming him the interim. Mayor Higgins invited public comments. Nina
Fluegal asked about the process for hiring a city manager and Mayor Higgins replied that has not yet been
determined. Tony Lazanis said he feels Mr. Calhoun is a good man who can do the job. There were no
further public comments. Several Councilmembers extended comments of praise to Mr. Calhoun. Vote by
Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. Councilmembers extended their
congratulations to Mr. Calhoun.
NON-ACTION ITEMS:
1. Spokane Transit Authority's(STA)Proposed Fare Increase—Karl Otterstrom
STA Planning Director Karl Otterstrom went through his PowerPoint explaining the STA's fare philosophy
and policy, background, who sits on the Board of Directors, regular fixed and other routes, types of vans
and buses, budget, operating cost comparisons, preliminary fare increase proposal, and example of fare
changes. Mr. Otterstrom said that the fares have not yet been determined, and they are seeking feedback;
Council Study Session:05-17-2016 Page 1 of 3
Approved by Council:06-07-2016
said if this does go forth, it wouldn't occur until next summer. In response to a question from
Councilmember Wood about rider demographics,Mr. Otterstrom replied that most of the riders are in the
younger group; that although fares are regulated by the federal government, the actual rate is a local
decision. Council thanked Mr. Otterstrom for his report.
2. Parks&Recreation 2016 Capital Projects—Mike Stone
Parks and Recreation Director Stone explained that some items have come up since the adoption of the
2016 budget which would require a budget amendment if Council concurs. Mr. Stone explained about the
three items: Browns Park splash pad; CenterPlace's roof, and new water service at the Valley Mission Dog
Park; with budget shortfall of$33,859 for the splash bad, $51,630 for the roof at CenterPlace, and $6,236
for the water service at the dog park.There was discussion about each item, including the idea of removing
all the tile and replacing it with a new roof at an approximate cost of$475,000. Councilmember Pace asked
about the possibility of other leaks and if the building if worth owning. Mr. Calhoun said if Council is
interested, he could look into that as there are outstanding bonds on the building with the Public Facilities
District paying about 80% of the bond payment, which runs through about 2033. Councilmember
Gothmann said that CenterPlace is well-noted as an asset to Spokane Valley, that it is a valuable piece of
real estate and branding point of view as well. It was noted that the cost of the dog park can be absorbed
into the budget,but since it wasn't included in the budget for spending,that change needs to come forward.
Mr. Calhoun said that Ms.Taylor will be explaining some of these issues in the next agenda item when she
gives the budget amendment update;and if Council wants to add these items,she can add them to the budget
ordinance when we come forward for a first reading.
3. 2016 Proposed Budget Amendment—Chelsie Taylor
Finance Director Taylor briefly discussed the proposed amendments, as noted in her Request for Council
Action; adding that Parks & Recreation Director Stone's items and the Lodging Tax grant were not
included;said that the Browns Park grant award was$60,650 and she mentioned that the Lodging Tax grant
was awarded last December after the budget was passed. Finance Director Taylor stated that there are
sufficient funds to cover the proposed budget amendment, and Council concurred to move this item
forward.
Mayor Higgins called for a recess at 7:30 p.m., and reconvened the meeting at 7:41 p.m.
4. Economic Development Marketing Contract—John Hohman
Director Hohman explained some of the background of the 2016 marketing program;said the overall budget
was $200,000, and this contract amount is $152,500; and that he seeks Council concurrence to move
forward with a future motion for a contract with Atlas Advertising. Mr. Hohman also noted that
representatives from Atlas will be coming in at various points in the process.In response to a question about
Atlas owner Ben Wright, Mr. Hohman explained that Mr. Wright grew up in Seattle, has had some
interactions with GSI (Greater Spokane, Inc.) and is familiar with the area; that Atlas stood out from the
others based on their experience and expertise.There was some discussion about funding with Mr.Hohman
explaining that each year funding has been transferred into the Economic Development budget. There was
also brief discussion about the branding, and our City logo, as well as Atlas coming up with a unique
economic development logo and emphasis on specific goals.There was Council/staff discussion about how
this compares with what we spend for GSI, Visit Spokane, and the Sports Commission as well as GSI's
functions. Mr. Hohman said GSI works with businesses here in a business retention effort; Visit Spokane
has more of a marketing focus similar to the Chamber;and in Atlas' scope,they will seek means to leverage
those partners and have them tell our story. Mr.Hohman said Atlas would like to do a multi-year contract,
but these contracts are typically one year with various extensions;adding that they would prefer a five-year
contract;he said they have a strong commitment to make sure we are satisfied with their products. Council
concurred to move this forward for a future motion.
Council Study Session:05-17-2016 Page 2 of 3
Approved by Council:06-07-2016
5. Advance Agenda—Mayor Higgins
Deputy Mayor Woodard asked about the agreement with the Library District and asked to see those
documents; Mr. Calhoun replied that staff can bring that forward, and that the Library has until October
2017 to pass a bond measure.Deputy Mayor Woodard also asked about the current rule regarding recycling
and Waste Management as some citizens would prefer not to participate in recycling.Mr.Calhoun said that
will be included with the May 31 report on solid waste collection Request for Proposal. Councilmember
Pace also asked about the library district specifically what it would take if we decided to pull out from them
and form our own library. Mr. Calhoun said he will include that on the pending list and should be able to
address that over the next couple months.
6. Council Comments—Mayor Higgins
There were no additional Council comments.
7. Deputy City Manager Comments—Mark Calhoun
Mr. Calhoun reported that the second reading of the bond ordinance was held last week and the pricing of
the bonds will be tomorrow; and said that he will report the results to Council at the May 31 meeting.
It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. The meeting
adjourned at 8:09 p.m.
IV 10Pr O
ATTE S/ L.R. Higgi ,l a
vt4.". li�t J f '(flee"i
Christine Bainbridge, City Clerk�---_
Council Study Session:05-17-2016 Page 3 of 3
Approved by Council:06-07-2016
Added agenda item
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: May 17, 2016 Department Director Approval: ❑
Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing
❑ information ❑ admin. report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: Motion Consideration: Designating an Acting City Manager.
GOVERNING LEGISLATION: RCW 35A.13.050, RCW 35A.13.150.
PREVIOUS COUNCIL ACTION TAKEN: At a February 23, 2016 Special Council meeting,
Council requested City Manager Mike Jackson's resignation. Mr. Jackson tendered his
resignation per agreement, with his last day of work April 27, 2016.
BACKGROUND: Council desires to designate Deputy City Manager Mark Calhoun as a qualified
administrative officer to perform the duties of Acting City Manager, as noted in the accompanying
"Letter Agreement for Spokane Valley Acting City Manager."
OPTIONS: Council discretion.
RECOMMENDED ACTION OR MOTION: Move to designate Deputy City Manager Mark Calhoun
as the Acting City Manager, effective May 18, 2016, to perform the duties of the City Manager
until such time as a permanent City Manager is selected or November 18, 2016,whichever comes
first; and to authorize the Mayor to finalize and execute the attached "Letter Agreement for
Spokane Valley Acting City Manager" on behalf of the Council.
BUDGET/FINANCIAL IMPACTS:
STAFF/COUNCIL CONTACT: Mayor Higgins
ATTACHMENTS: Letter Agreement for Spokane Valley Acting City Manager
LETTER AGREEMENT FOR
SPOKANE VALLEY ACTING CITY MANAGER
This letter agreement (Agreement) is between Mark Calhoun, Deputy City Manager (Mr.
Calhoun), and the City of Spokane Valley, acting through the City Council.
Pursuant to an approved motion by the City Council in open session on May 17,2016,Mr. Calhoun
is hereby appointed as the Acting City Manager of Spokane Valley. The effective date of the
appointment is May 18,2016(upon execution of this Agreement),and shall continue to November
18, 2016, unless terminated earlier by the City Council due to appointment of a person to fill the
role of City Manager,which may include Mr. Calhoun,or due to termination for cause. The parties
may agree in writing to extend this Agreement by an additional up to 60 days if the City needs
additional time to hire a City Manager.
The annual salary under this Agreement shall be$155,000.00,with all applicable benefits currently
being received by Mr. Calhoun. The City agrees Mr. Calhoun shall continue to earn the salary of
the Acting City Manager for two additional months after a new City Manager's start date, unless
Mr. Calhoun is named the City Manager. In the event a new City Manager decides within 12
months of his/her start date to not retain Mr. Calhoun as Deputy City Manager, Mr. Calhoun shall
be entitled to a severance payment equal to 12 months of pay with full benefits at the Deputy City
Manager rate. In the event Mr. Calhoun is not chosen as the City Manager, and determines within
12 months that he cannot have a relationship with the City Manager that is effective to meet the
operational best interests of the City and must therefore resign, then Mr. Calhoun shall be entitled
to a severance payment equal to six months of pay with full benefits at the Deputy City Manager
rate. This severance shall not be in effect in the event of a termination for cause (misfeasance or
malfeasance).
After a new City Manager arrives,if applicable,Mr. Calhoun shall be granted paid leave of absence
of 40 hours, the dates and times of which shall be scheduled with the approval of the new City
Manager. This leave shall be in addition to any other leave applicable to Mr. Calhoun, and may
be carried over to 2017 if unused in 2016.
Upon completion of the term of Acting City Manager, the City agrees that Mr. Calhoun shall be
allowed to return to his previous role as Deputy City Manager with restoration of all rights and
benefits, except as may otherwise be specified in this Agreement. In the event Mr. Calhoun is
selected to be the City Manager,the City shall negotiate a separate agreement for those duties.
Under this Agreement, Mr. Calhoun shall perform all duties and responsibilities of the City
Manager for the City. At the conclusion of this Agreement, if Mr. Calhoun is not hired to become
the City Manager, the City Council agrees to conduct a facilitated review (by a facilitator to be
mutually agreed upon by the City Council and by Mr. Calhoun) of Mr. Calhoun's performance.
The items to be reviewed include but are not limited to the ability to communicate with the City
Council, the public, and staff, and the ability to effectively identify and carry out adopted policy
of the City Council.
The Parties agree that this Agreement represents the sole and exclusive remedies between them
arising out of this Agreement with regard to any separation from employment relating to the duties
herein, and that the separation provisions were an integral part of the consideration for entering
into the Agreement, and were specially negotiated.
This Agreement shall be in effect upon the date last executed by a party.
L. R. Higgins, Mayor Dated
Mark Calhoun, Acting City Manager Appointee Dated