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2016, 11-22 Special Legislative MeetingAGENDA CITY OF SPOKANE VALLEY SPECIAL MEETING Tuesday, November 22, 2016 3:30 — 5:00 p.m. SPOKANE VALLEY CITY HALL 11707 East Sprague Avenue 2nd Floor Conference Room (Please Silence Your Cell Phones During the Meeting) DISCUSSION LEADER SUBJECT/ACTIVITY GOAL CALL TO ORDER ROLL CALL: WELCOME: Mayor Higgins DISCUSSION: City of Spokane Valley Legislative Agenda: 1. Support Legislation Clarifying Valley Water Providers' Water Rights — Cary Driskell 2. Transportation Funding Request — Barker Road/BNSF Grade Separation Project — Eric Guth 3. Funding Appleway Trail Park Amenities — Mike Stone 4. Protect the Local State- Shared Revenues — Mark Calhoun 5. Protect Businesses by Reforming State Regulatory Burden — Cary Driskell ADJOURN Special Agenda, November 22, 2016 2017 Legislative Agenda The following is the City of Spokane Valley's 2017 legislative agenda adopted by Council at their September 6, 2016 Council meeting: Support Legislation Clarifying Valley Water Providers' Water Rights The City of Spokane Valley residents and businesses receive water through multiple regional water providers. To ensure adequate water supply for the growing Valley community, current law needs to be changed to clarify these water providers' water rights are for municipal water supply purposes and are not subject to relinquishment. The water providers are using water rights currently designated for agricultural irrigation and dairy purposes, rather than for municipal water supply. The Department of Ecology has indicated that agricultural irrigation and dairy water rights held or acquired by a municipal water supplier cannot be considered municipal water supply water rights without filing for a change of use permit. A change of use permit process is slow, costly, and may diminish the overall water right. The City supports legislation that clarifies that the water rights held by water providers serving the Spokane Valley region can be changed to municipal water supply purposes without going through the change of use permitting process. Transportation Funding Request — Barker Road /BNSF Grade Separation Project The City of Spokane Valley respectfully requests that the state invest in Phase 1 of Bridging the Valley by allocating funds to the Barker Road/BNSF Grade Separation project. The Barker Road/BNSF Grade Separation Project replaces an at -grade crossing with an overpass of BNSF's railroad tracks and Trent Avenue (SR 290). The project will eliminate two at -grade crossings, eliminating train/vehicle crash risks. The project will improve train travel through the Spokane region, which is a bottleneck of the Great Northern Corridor. The total project cost is $36 million The City has already secured $9.8 million. The City is seeking $26.2 million in future funding for the Barker Road/BNSF Grade Separation. Funding Appleway Trail Park Amenities The City of Spokane Valley requests $1,185,655 in the 2017-2019 Capital Budget for park amenities for the first mile of the Appleway Trail. These amenities include a restroom, picnic shelter, play equipment, splash pad, interpretative signage, tables, and benches along with an increased square footage of irrigated turf and trees. The City previously funded, designed and constructed the paved portion of the first mile with over $1 million without these amenities. The state has allocated funding for the remaining 3.25 miles (including amenities), scheduled over the next two years. This funding will bring amenities to the entire 4.25 -mile trail, realizing the full conceptual plan and orienting future economic development. Protect the Local State -Shared Revenues The City of Spokane Valley requests that the Legislature preserve and restore local state -shared revenues. These funds include the Liquor Excise Tax Account ($303,724 in 2015), Liquor Board Profits ($806,570 in 2015), Streamlined Sales Tax Mitigation ($572,577 in 2015), Municipal Criminal Justice Assistance Account ($273,160 in 2015), City -County Assistance Account, and Marijuana Revenues ($37,912 in 2015). Specifically, the City supports legislation that removes the 2011 cap on Liquor Profit revenues to restore the 50/50 revenue sharing relationship between the state and local governments. Protect Businesses by Reforming State Regulatory Burden The City of Spokane Valley strongly supports small and large businesses in our City and across the state, because they are the lifeblood of our economy. Unfortunately, these businesses are forced to compete in a state regulatory environment that is increasingly burdensome, making it difficult to compete with businesses in neighboring states. Of most urgent concern is the regressive state business & occupation tax, with the current Labor & Industries program close behind, and both need significant reform before they do irreparable damage to commerce in Washington. Spokane Valley supports rebalancing the statewide regulatory framework to encourage and support business development and retention. The City supports the Association of Washington Cities' legislative agenda items that serve the best interests of Spokane Valley. BARKER ROAD GRADE SEPARATION - SPOKANE VALLEY, WA "A Bridging the Valley" Project Spokane Industrial Business Park FUNDING REQUEST: $26.2 Million DESIGN, RIGHT OF WAY, AND CONSTRUCTION Total economic output in the state: New jobs in the state: New general fund taxes to the City: New general fund taxes to Washington State: Industrial acres opened for development in Spokane Valley: * ECONorthwest $2 Billion 9,800 $12.3 Million $40.4 Million 500 Background: Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile corridor between Spokane, WA and Athol, ID. This study outlined the need for a grade separation at this location as well as others along the corridor. The separation of railroad and roadway grades in this corridor is intended to promote future economic growth, traffic movement, traffic safety, and train whistle noise abatement. Barker Road is one of the primary freight routes from State Route 290 (Trent) to Interstate 90 for trucks traveling to and from north Idaho and Canada. Total Project Cost: $36.0 Million • Design & ROW Phase: 0 30% Design completed, Federally Funded ♦ Construction Phase: 0 Environmental clearance received for this project Secured Funds: $9.8 Million + Washington State FMSIB—$7.2 Million ♦ City of Spokane Valley—$1.53 Million ♦ 2009 Earmark—$720,000 • BNSF—$346,000 Project Benefits: • Improve public safety by reducing rail/vehicle collisions • Enhance development opportunities with a single rail corridor and Improve access • Improve emergency access to residents and businesses • Eliminate waiting time for vehicles at the rail crossing • Reduce noise levels—no more train whistles near the crossing • Improve traffic flow due to a separated grade crossing BARKER ROAD GRADE SEPARATION - SPOKANE VALLEY, WA "A Bridging the Valley" Project Why Now? The current intersection has a Level of Service (LOS) of 'F' due to current vehicle traffic, design, and train volumes. The failing LOS has severely limited development and growth in this important industrial zoned area. Currently 5100 vehicles and an average of 55 trains per day cross this intersection, 19 of which are unit oil trains. WA State Department of Ecology projects oil train numbers to exceed 100 unit trains per day within the next 10 years. This project benefits multiple jurisdictions including Spokane Valley, Spokane County and the Washington State Department of Transportation. The return on investment with the project is significant. Greater Spokane Inc., our Economic Development Council is constantly having to turn businesses away from this area due to lack of infrastructure. The City of Spokane Valley has been following the potential issues and concerns raised by the proposed train traffic increase on coal trains along the BNSF mainline, which bisects our City. In particular, the City is concerned about the potential impacts on the SR290/ Barker Rd intersection and railroad crossing. The proposed grade separation is a mutually beneficial project for the City, the State and BNSF. The project helps address several areas of concerns, helps improve the efficiency of the rail movements along the corridor, and addresses environmental, safety and congestion related issues impacting the City's street network. Development of the surrounding industrial zone may have additional benefit to BNSF by attracting companies dependent upon rail for shipping to relocate or develop. PROJECT SUPPORT Barker Properties LLC BNSF Railway Freight Mobility Strategic Investment Board Greater Spokane Valley Chamber of Commerce IEDS Logistics Kestell Company, Property Owner Kiemle & Hagood Company City of Liberty Lake Spokane County Commissioners Spokane County Engineers Spokane Regional Transportation Council Spokane Valley Fire Department Spokane Valley Police Department Village Square Realty, Inc., Property Owner Ray Villanueva, Property Owner Senator Mike Padden Washington State Department of Transportation Washington Trucking Associations