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2016, 11-01 Study Session MINUTES SPOKANE VALLEY COUNCIL MEETING STUDY SESSION Spokane Valley City Hall Council Chambers Spokane Valley,Washington November 1, 2016 Attendance: Councilmenibers Staff Rod Higgins,Mayor Mark Calhoun, Acting City Manager Arne Woodard,Deputy Mayor Caty Driskell, City Attorney Caleb Collier, Councilmember Chelsie Taylor, Finance Director Pam Haley, Councilmember Erik Lamb,Deputy City Attorney Mike Munch, Councilmember Eric Guth,Public Works Director Ed Pace, Councilmember John Hohman, Comm&Eco. Dev. Director Sam Wood, Councilmember Steve Worley, Capital Improv. Program Mgr Sean Messner, Senior Traffic Engineer Kristopher Morton, Legal Intern 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. ACTION ITEMS: 1. Proposed Resolution 16-012 Amending Governance Manual--Chris Bainbridge It was moved by Deputy May©r Woodard and seconded to approve Resolution 16-012 amending the Spokane Valley Governance Manual. City Clerk Bainbridge explained that this item has been discussed with Council as noted in the Request for Council Action form, with the noted proposed changes. Mayor Higgins invited public comment. Mr. Michael Cathcart, said he was speaking on behalf of the Spokane Home Builder's Association, thanked Council for including the super majority rule; said that was adopted about three and one-half years ago in Spokane,and has been adopted elsewhere such as Yakima and Pierce County;said lie feels the local citizens deserve reasonable taxpayer protection and that will assure taxpayers that any tax added or increased will be done so by consensus from Council; said lie feels this was done thoughtfully and if removed by a future council,they apparently wouldn't care about giving that consensus for taxes, and again thanked Council for including that in the Governance Manual. There were no other public comment. Vote by Acclamation:In Favor: Unanimous. Opposed.'None. Motion carried. 2. Motion Consideration: Land Acquisition--Eric Guth It was moved by Deputy Mayor Woodard and seconded to authorize the City Manager to finalize and execute the purchase and sale agreement for the property at 707 S. Carnahan Road.Public Works Director Guth explained that the property in question is adjacent to the Viand Carnahan intersection which staff has been looking at re-designing over the last few years due to crash activity and safety concerns; said there is a 14' offset between Carnahan coming downhill and on Carnahan going north, it creates issues for people to navigate that intersection, and there is a rock on the southwest corner of the intersection, so it needs to be re-aligned to the east and we will need some right-of-way; said this property will help with that need to improve that intersection; also the North/South corridor improvements coming to the east along 1-90 is anticipating to have some of the onloff ramps re-aligned iii this general area which will also add to the traffic; said we have an agreement with the sellers,and staff recommends approval.Mayor Higgins invited public comment;no comments were offered. Vote by acclamation:In Favor: Unanimous. Opposed:None. Motion carried. Council Study Session: 11-01-2016 Page 1 of 4 Approved by Council: 11-22-2016 NON-ACTION ITEMS: 3. Legal Options for De-annexing from a Library District—Cary Driskell,Kristopher Morton City Attorney Driskell gave some background information on the Sprague property purchased by the City at the Library's request,which was sold to the Library District with the intent of them constructing a new library facility based on voter approval,which was submitted to the voters twice and which each time failed slightly. Mr. Driskell explained that in light of the recent request by the Library to amend the interlocal agreement to transfer the property back to the City earlier than originally agreed upon, and in light of the goal of the Council to have a library facility at the Sprague property across from the new City Hall, he stated that staff was asked to present options on how the City might legally de-annex from the Library District. Mr. Driskell explained the City's options for providing library services,what would occur if the City decided not to provide those services, all as contained in his PowerPoint presentation. Mr. Driskell also went over the tax implications of de-annexation and of the maximum levy rates. Deputy Mayor Woodard asked if there are any pending conversations with the library, and Mr. Calhoun said he and some of his staff will be having discussions with Ms. Nancy Ledeboer and some of her staff about a library hopefully on the corner of Sprague and Dartmouth,to determine how collectively the two staffs can work to bring such meeting to fruition and therefore bring Council a future report.Mayor Higgins stated that this is just an exploration of what might be available and not necessarily something that is being considered or pending. 4.Transportation and Infrastructure Utility Tax—Chelsie Taylor, Cary Driskell Finance Director Taylor explained, as noted in her Request for Council Action,that since 2004 Council has had periodic discussions regarding the need and potential options for funding current and projected future deficits in the City's transportation and infrastructure programs, including the option of a utility tax. As noted in the PowerPoint, Ms. Taylor explained about a 2004 proposed ordinance for a utility tax which did not advance to a second reading,and of the various Council discussions held during the calendar year 2016; she explained the issue with the street fund and the pavement preservation fund and of the City's committing an increasing amount of REET (real estate excise tax) revenues toward pavement preservation, which is beginning to impact the City's ability to match grant funding for other street projects, and which at the current rate,would likely result in a negative REET fund in 2019. Ms. Taylor explained what the tax limits are on the various utilities,without voter approval,and those utilities not limited by state law, and she gave estimates for the revenues for each tax based on a 1,2,3,4, 5,and 6%tax. City Attorney Driskell then went through the verbiage contained in the draft ordinance, including the section that requires that all revenue generated from these utility taxes shall be exclusively used for funding City road projects. There was discussion about how much this would cost per household,and Councilmember Munch asked if the provider would be able to deduct for the work they do to assess the fee. Ms. Taylor replied that they would not.Mr.Driskell said that he would anticipate interaction with staff and these districts to help them get this set up and that we might be able to help with GIS data. Councilmember Wood mentioned the amount of work to track and maintain records for the provider and that the cost has to be absorbed, which would likely mean an increase in the water rates. Mr. Calhoun explained that the providers would likely have access to or be able to acquire a software feature whereby they could set up collection as well as remittance to us; said there would be utilities that have some customers in our City limits and some outside our City limits, but we would work with Community Development to provide coding to assist in sorting that; that it would be an effort up front, then it would be cutting a check to us monthly or quarterly. Councilmember Haley said she estimates all total this could amount to $25.00 a month more for citizens, and expressed concern of those on a limited and fixed income of being able to handle that. Ms. Taylor reminded everyone that the taxing utilities and the amounts would be as Council deems appropriate. There was also discussion of whether a 5%or 6%would be sufficient and again,Ms. Taylor said that would be a Council policy decision. Mr. Calhoun said the 5% would cover the projected deficit and fully fund street fund 101 and resolve the REET issue, but this is a policy discussion on part of Council on how far to go if Council Study Session: 11-01-2016 Page 2 of 4 Approved by Council: 11-22-2016 at all; said at the discretion of Council, the other funds could be used for construction projects including grade separation projects. Councilmember Pace said he shared the concern about those on fixed income, but likes the discretion of a utility tax more so than a property tax,as one could discipline some use of those utilities.Deputy Mayor Woodard the 6%would give us the cushion assuming the estimates are correct;said now is the time to do it right so we don't have to come back again in a few years and address this again. Councihnember Haley also mentioned that she owns a rental and if she has to pay more water and sewer, the tenants would pay an increase.Mayor Higgins noted that if we start with a 6%and find later it is more than is needed, it could always be reduced. Ms. Taylor mentioned that this topic will be discussed again next week with the public hearing and the first reading of the ordinance. 5, Spokane Regional Transportation Management Center—Eric Guth, Sean Messner Public Works Director Guth explained the background of the Interlocal Agreement, and Traffic Engineer Messner went through the PowerPoint presentation explaining the purpose and function of the SRTMC, how our system ties in with theirs,why is it important,who uses the SRTMC, how we support it and what does that cost the City, and what happens if the City decided not to participate. Mr. Messner also showed some of the functions of the SRTMC website. It was noted that this issue is scheduled to be brought to Council as a motion consideration as part of the November 8 council meeting. Mayor Higgins called for a recess at 7:39 p.m.; he reconvened the meeting at 7:46 p.m. 6. City Hall Lease Extension—Mark Calhoun City Manager Calhoun explained the need for the six month lease extension,which is due because our lease expires the end of March and we are not scheduled to move into the new building until the end of September; he also explained the financial issues related to the lease extension. There was Council consensus to place this on next week's Council Consent Agenda. 7.Appleway Trail Update—Steve Worley, Mike Stone, Eric Guth As an update on the Trail,Mr. Worley gave background information on the purpose of the trail,the overall plan,the section University to Pines, Pines to Evergreen, and Sullivan to Corbin. Mr, Stone spoke of the landscaping plans including the use of`Scottish Links' grass, and noted that the Sullivan to Corbin section is more narrow so we might be able to add amenities. 8. City Hall Update—Eric Guth, Steve Worley Mr. Worley went through the PowerPoint presentation showing the latest changes to the new City Hall. 9.Advance Agenda Mayor Higgins There were no suggested changes to the Advance Agenda. 10. Parks Maintenance Contract This item was for information only and was not reported or discussed. 11. Council Check-in—Mayor Higgins Councihnember Haley explained that she went on a "ride along"with one of the Police Officers and said she was amazed at the officer's ability to diffuse a situation; said it is a difficult job; and equally amazing that people don't always stop or move aside for police lights and siren. 12. City Manager Comments--Mark Calhoun Mr. Calhoun mentioned the different grant opportunities for the railroad separation projects; i.e. TIGER and FASTLANE,and that unfortunately,they were both unsuccessful,however,we just learned of another FASTLANE grant opportunity with a December 15 deadline, so that will be coining to Council soon to seek Council's approval to apply for the grant. Council Study Session: 11-01-2016 Page 3 of 4 Approved by Council: 11-22-2016 It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. The meeting adjourned at 8:33 p.m. C.4? ) ATI Si" L.R. Higgins,Mayo Christine Bainbridge, City ClerV Council Study Session: 11-01-2016 Page 4 of 4 Approved by Council: 11-22-2016