Loading...
2018, 06-12 Special Meeting, Workshop MINUTES SPOKANE VALLEY COUNCIL SPECIAL MEETING WORKSHOP Spokane Valley City Hall Council Chambers Spokane Valley,Washington June 12,2018 Attendance: Councilmembers Staff Rod Higgins,Mayor Mark Calhoun, City Manager Pam Haley,Deputy Mayor John Hohman, Deputy City Manager Brandi Peetz, Councilmember Cary Driskell, City Attorney Linda Thompson, Councilmember Erik Lamb, Deputy City Attorney Ben Wick, Councilmember Chelsie Taylor,Finance Director Sam Wood, Councilmember Mike Stone,Parks&Rec Director Arne Woodard, Councilmember Mark Werner,Police Chief Bill Helbig, City Engineer Gloria Mantz, Engineering Manager John Whitehead, Human Resources Manager Morgan Koudelka, Sr.Admin.Analyst Doug Powell, Building Official Mike Basinger, Economic Development Mgr. Christine Bainbridge, City Clerk Mayor Higgins called the meeting to order at 8:30 a.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. WELCOME: Mayor Higgins welcomed everyone to the meeting. WORKSHEET OVERVIEW—Mark Calhoun, Chelsie Taylor City Manager Calhoun explained that the purpose of today's workshop is to discuss the 2019 budget. He explained that this will be the City's seventeenth budget since corporation;that the budget reflects the City's priorities in terms of budget commitment and staff effort, and stresses the priorities of public safety, pavement preservation,transportation and infrastructure (which he said includes parks and recreation and various capital projects), and economic development, and that we will focus on those combined items throughout the meeting. Mr. Calhoun stated that there was an expanded effort on the part of staff today to prepare for this workshop, and he extended thanks to Finance Director Taylor and her staff,as well as the people around the table today and all those who worked on the budget,which he said amounted to hundreds of hours in order to arrive at this point today. Mr. Calhoun noted that the finance depaitment will be buried over the next ten weeks working on twenty-two other funds, and said that today's numbers will be refined when the budget comes before Council August 21, adding that all of today's numbers are first-run numbers and that while he doesn't anticipate substantial changes, he said there will be changes. Mr. Calhoun mentioned that revenue projections are based on four to five months of 2018 data, and that we also look at a series of revenue figures over the last ten years to help project trends. Mr. Calhoun noted that an example of a significant revenue trend concerns the state shared revenues,which are now$1.86 million; he said we will receive some updated revenue sharing figures from MRSC (Municipal Research Services Center)that will be based on population, later in July, and that we hope to include that information in the August 21 Council budget information. Mr. Calhoun said that the budget workshop binder includes twenty-two sections, and that we intend to go through it all by 3:30 p.m. He noted the morning items will be about ten to fifteen minutes per department with the exception of public safety; and this afternoon we will look Council Special Meeting Workshop:06-12-2018 Page 1 of 13 Approved by Council:07-24-2018 forward to Council discussion on those topics noted in the agenda; said he realizes this is an aggressive schedule but the plan is have today's meeting last no later than 3:30 p.m. Mr. Calhoun mentioned the various funds included in the budget, and that each year we start the budget cycle with two goals: recurring revenues will exceed recurring expenses, and the ending fund balance will be at least 50% of recurring expenditures; he said the goal for the 2017 budget was to remain at status quo for level of service or no greater than 1%; and we delivered the 2017 budget.87%greater than the previous year; he said the 2018 budget delivered an increase by 1.81% and maintained historic levels of service; for 2019,we want our level of service to remain consistent with the goal of not more than a 1.5%increase.Mr. Calhoun noted some departments are over and some under, but the estimate is the general fund recurring expenditures will be 1.22% over that of 2018. He noted the reality is, we are unsure what the final figures will be as these numbers are preliminary; said we are not anticipating a significant change unless something significant happens and we anticipate being well under 2%, and he noted the CPI (consumer price index) U.S. 2017 average is 3.2%;and he extended kudos to all departments for their work. Mr. Calhoun said that as staff go over the budget, to please feel free to comment and question as this is just the first of eight opportunities before the budget is scheduled to be adopted in early November. Finance Director Taylor then went over some of the information on the pages before Tab#1,which included the expanded calendar showing November 13 as the projected date for adopting the budget; the next two pages showing the summary of the general fund budget, including the figures in blue as recurring activities included in the amended 2018 budget,mentioned the total recurring projected revenues of$45 million,and said this will be presented to Council again in August. She also noted we assume the City will not take the 1% increase in property taxes, and she went over the sales tax projected figures, which when inflation is added to that, gives us what we expect in 2019; said we know there will be a decline in the economy at some point,so we are trying to give very conservative figures.Director Taylor went over the total recurring expenditures and other data contained in the pages under General Fund #001, the sheet showing general fund department changes from 2018 to 2019, the page on street fund 4101, and on the Stormwater Fund #402 page, adding that capital nonrecurring expenses will change as some projects are tied up with state funding;and that the data on all these numbers is being refined;she noted in comparing total 2017 revenues with total expenditures, we were over by about $7 million,which likely means there will be a substantial transfer in 2019 out of the general fund. Tab 1--City Council—Mark Calhoun, Council Finance Director Taylor mentioned that these pages include actual activities through 2017, with 2018 amended figures, and 2019 proposed; and also noted that the budget reduction exercise of 3, 6, and 9% is just an exercise to show how the City could respond in the event of an economic decline. City Manager Calhoun stated that this budget reduction exercise at some point in the future will be valuable; that we are currently in the second longest economic expansion in U.S. history,so we know it will come to an end. Mr. Calhoun also mentioned the Business Plan under Tab 22, is an important document and the foundation which drives the budget figures. Before going over the figures under this tab, City Manager Calhoun mentioned that we are actually recording today's meeting so members of the community can go on the City's website to view our meeting. Mr.Calhoun explained that the goal is to make certain that budget requests closely approximate the average of actual expenditures for the previous three years, and then anticipate some future increase; he noted the bottom of the page shows a decrease by 4.52% and noted the difference in budget figures is under payroll taxes and benefits and reflects a reduction in out-of-pocket expenses for health insurance coverage with dependents for this council as opposed to estimates we made for the 2018 budget; said the main items include $62,000 for a state lobbyist, which is the company of Gordon Thomas Honeywell, and includes another $92,400 for a federal lobbyist; $31,000 is for Twisted Pair which is the company that records the Council meetings for broadcasting,and their rate is about$2.00 per minute,plus setup and shut down;there Council Special Meeting Workshop:06-12-2018 Page 2 of 13 Approved by Council:07-24-2018 is also $4,000 for each Councilmember for travel; and the membership line includes memberships fees for AWC(Association of Washington Cities) and NLC (National League of Cities). Mr. Calhoun stated that there have been no expenses for a federal lobbyist in 2016 or 2017, and mentioned it could be advantageous to have an advocate in. Washington, D.C. for such things as applications for our grade separation projects;Mr.Calhoun invited Council comments. Councilmember Wick said he feels this is a good idea, especially in connection with any of the railroads, and more relationships in Washington, D.C. would be beneficial. Councilmember Woodard said he agrees that having a relationship in D.C. is important, not just for help with our grade separations, but for bridges and other projects; said he doesn't want to take that out of the budget and perhaps it is a matter of finding the right lobbyist,perhaps one who works with Idaho and Montana as well as Washington.Deputy Mayor Haley said in her work with the STA (Spokane Transit Authority) having a lobbyist was a huge benefit as they completely re-wrote their grant request for them. Mr. Calhoun noted that there is apparently a consensus to keep that in the 2019 budget and that staff will prepare an administrative report for a future Council meeting; he said the City attorney has been working on a request for qualifications relative to that, and will seek consensus to proceed and award a contract which staff would then carry forward; he mentioned that having a Washington, D.C. lobbyist would entail travel to D.C. for him and some Councilmembers, and again mentioned the $4,000 travel allocation per Councilmember. Mr. Calhoun said that historically on the average, Council hasn't come close to spending that kind of money. Councilmember Woodard asked if Councilmembers could allocate their share of travel as they have done in the past,and Mr.Calhoun said that policy has not changed. There was some discussion about state rule making with mention by Mr. Calhoun that 2017 wasn't a banner year for state rule making,nor has it been in 2018 thus far; but we had $10,000 or$15,000 for monitoring rule making. The question arose if that was worth our investing,and Mayor Higgins said many things occur in the legislature and he feels we would be missing out by not having someone monitor those; and feels in the next few years they will probably earn their money. City Attorney Driskell said that he feels as Mr. Calhoun previously stated, that there will come a time when we wished we were keeping closer tabs, and that he too recommends keeping that funding in the budget. Tab 2—City Manager—Mark Calhoun Mr. Calhoun noted this shows an overall increase of 2.9% which reflects potential increases in wages; concerning the benefits, he explained that the largest increase is health insurance which is increasing 10% for medical; he noted the administrative assistant position remains in the budget, which he said has been vacant since Sue Passmore's retirement; he said he doesn't think there is enough work for a full-time position and Ms. Passmore kept busy during her last three years by scanning residential files. Tab 3—City Attorney--Can,Driskell Mr. Driskell said the function of their office is to advise staff and Council on most legal issues; said they also provide a significant amount of support for Code Compliance, and they are active in purchasing and contracting; he went over his employee count, and said his department's budget is stable. Tab 4—Public Safety--Morgan Koudelka,and Chief Mark Werner Mr.Koudelka started with the law enforcement services shown on the second page under Intergovernmental Services; said there hasn't been a lot of change from 2018-19, but the estimates are based on the new methodology, which is easier to understand and administer; and the 2019 proposed budget is based on that County estimate along with the other projections; said with that new methodology, we realized some cost savings, and staff continues to track and monitor this closely; he mentioned they added some inflationary increases of$500,000 as the Sheriff's Office implemented a pool of officer candidates, and they have ten positions they will hire and try to get through the academy and training process so there would be people ready to fill open positions; and said we split the cost of those positions with the County this year. Chief Werner mentioned future staffing and the lack of positions which necessitated overtime; said there is a big recruitment effort to get qualified applicants; they have projected to lose twenty-two employees at the Council Special Meeting Workshop:06-12-2018 Page 3 of 13 Approved by Council:07-24-2018 Sheriffs office, and of course, the Police Department gets its officers from the Sheriff's Office; said to- date they have hired seventeen and anticipate hiring ten more, with an additional three or four laterals by the end of the year. Chief Werner also noted the Criminal Justice Training Commission cancelled the academy projected to be here in Spokane; said by June 30 the Spokane Valley Police Department will have five people retire so this lack of academy needs to be addressed; he mentioned there will be ten graduating June 20 and we just picked up a few laterals, so he is hopeful that by November we will see staffing improvements. Mr. Calhoun said this could be a potential 2019 Legislative Agenda topic tentatively scheduled for future discussion at the August 28 Council meeting. Discussion ensued regarding the lack of a local academy and how it would affect everyone, with Councilmember Thompson suggesting we solicit assistance in that endeavor from GS.I, and the Chamber could add this to their legislative agenda as well. Other comments included that a lack of officers leads to increase in crime; traveling to the west side of the state is expensive and we need a program to get people trained and through the program quicker; and of the idea of endorsing a pilot program. It was noted again that a shortage of staff leads to overtime and an expense to the community. Mr.Koudelka said some of the overtime has been factored into this budget, but there will likely be more, that some would be offset by shortages in position, and he said staff will keep Council apprised of the staffing levels and overtime. Mr. Koudelka continued going over the figures shown on the first page; he mentioned the pass-through revenues we get from the courts through fines; that wages are costs associated with maintenance of the precinct building; he mentioned the district court increase and that they are considering adding a commissioner to help offset some of the workload on the remaining judges; said we have seen a reduction in overall cases so we asked them to take all that into consideration. Mr. Koudelka also mentioned there was an error in electronic coding which resulted in a lot of County items coded to Spokane Valley,and that the County has spent the last few months fixing that;they also discovered a long-term effect of miscoding the other way, and some officers that work for us typically were charged at the County, and that we don't know the full extent of that,which could result overall in us having higher numbers. Mr.Koudelka said this will also continue to be monitored and reviewed for this coding error for all the contracts. Councilmember Peetz asked about the Courts not holding sessions on Fridays and Mr. Koudelka explained that our costs are based on a cost per case,which is recalculated every year; said they do a time study every three years to determine how much time is spent on each case which helps us more accurately project our costs; said the only impact of not holding court on Friday would be if they charged us for something that we were not receiving. Mr. KoudeIka went over the figures for the other contracts, and Councilmember Woodard mentioned we want to make sure we are not subsidizing the City of Spokane on the animal control costs. Mr. Calhoun said that he and Ms. Taylor and Mr.Koudelka have talked about this;this is the sixth contract year,and the licensing figures and service figures by the City of Spokane were flawed in the beginning of the agreement and now; but going forward Mr. Koudelka and Ms. Taylor are helping SCRAPS review that; and said we will come to Council in the future for an update. Mr. Koudelka also stated that as a result of our continued insistence, the City of Spokane has committed to write a check to bring them equal on revenues with everyone else, as estimates were originally based on faulty numbers and they (City of Spokane) had not been paying their true cost. There was also brief mention of the number of officers we have and Chief Werner said we have 89 dedicated but we also have shared officers. The meeting took a break at 9:53 a.m., and reconvened at 10:10 a.m. Tab 5—Deputy City Manager—John Hohman Deputy City Manager Hohman said his is an easy budget with the evolution occurring this past year, the Public Information Officer and intern have now shifted to Economic Development so his department has just one FTE (full-time equivalent), which is his position. Mr. Hohman noted in the past there were two office assistants,and since we now have one single front counter,those positions were consolidated to Doug Council Special Meeting Workshop:06-12-2018 Page 4 of 13 Approved by Council:07-24-2018 Powell's Building Division; he noted this allows us to look at all aspects of the front counter and make those positions more efficient;he said one position was moved to full time filing to keep us caught up which helps us respond to public record requests; he also mentioned the new software of Q-Alert which will help us track things that come into the City, such things as complaints and concerns. Tab 6—Finance and Information Technology—Chelsie Taylor Finance Director Taylor briefly went over the figures under Tab 6;mentioned the 11.75 FTE's and said the overall increase is about 4%; with a nonpayroll increase of zero, so except for salary projected increases, they are keeping with the status quo; she also mentioned the cost of training is increasing, especially in the field of Information Technology. Tab 7—General Government—Chelsie Taylor Finance Director Taylor explained that this total budget shows about a 59%decrease and is related entirely to those non-recurring transfers out. There was some brief discussion about employee recognition and Ms.. Taylor explained that the figure was cut by$500 based on actual expenditures over the last there years. City Manager Calhoun also noted that this year we had an employee recognition week, which was a series of events as compared with previous years' function held at Bumpers; he also noted the cost of the employee barbeque held in July is borne entirely by the directors. Ms. Taylor noted the figures in the box on the top of page 2 are the economic development and social services expenditures. Councilmember Woodard asked if we pay Spokane Health and Ms. Taylor said she does not recall. Councilmember Wick asked about election costs and if that includes postage; and Councilmember Woodard also noted he thought the pre- paid postage just passed as a pilot for one year. Ms. Taylor said she will research that. Ms. Taylor also noted that the capital outlays include replacing some outdated servers. Tab 8—Human Resources--John Whitehead Human Resources Manager Whitehead said that the most significant change under his department concerns the ID badges made by an outside company; and that as our ID badges are also our keys,that is now done in-house, which lowered the professional services expense. In response to Councilmember Woodard's question about HR doing a comparative analysis to see if we can get the same or better benefits, for the same or less expensive costs, Mr. Whitehead said he doesn't have a comparison planned, but the analysis he puts together shows it would be very difficult to beat the prices we are paying through our benefit trust; that we are a fairly small group but because we are part of the trust, the trust can bargain many thousand people through health care plans, and keep those benefits costs down as it is AWC (Association of Washington Cities)that administers the benefits for us. Councilmember Wood asked where do we advertise for employees, and Mr. Whitehead replied that it depends on the type of position; if for an engineer, we would go to a professional engineer association; while others would be advertised in the Spokesman Review. Once an employee is hired, Mr. Whitehead said they track where they reviewed notice of the opening; and said he is seeing fewer applicants using newspapers, and most applicants go on-line to find employment; which he said has been favorable in helping reduce the advertising budget over the years, although he added, at times it is still most effective to use the newspaper; he said we also use AWC's website and Craigs List although they are now charging a nominal fee. Mayor Higgins asked about historical rate increases for benefits, and Mr. Whitehead said historically we see about a 10% increase annually, but the good news is in the last few years that is coming in less;but for budgeting purposes, it is better to plan for the trend and if we come in below our projections, all the better. Finance Director Taylor also noted that we get preliminary estimates from AWC and so far, estimates are coming in under the projection; she said that there will not be any adjustments at this point as that can occur later as needed. Mr. Whitehead also mentioned that AWC gives us the projections, and comes back later in the fall with actual rates so we can adjust our budget figures. Ms. Taylor also noted that there have been times when those figures come in too late to adjust the budget. Councilmember Wood asked about the mobile app maintenance, and Mr. Whitehead explained that is for tourism; that we have two app markets; i.e. Apple and Android and they charge us $99.00 each per year to keep those on the markets. Council Special Meeting Workshop:06-12-2018 Page 5 of 13 Approved by Council:07-24-2018 9. City Hall Operations and Maintenance--Doug Powell Building Official Powell briefly went over some of the figures on this spreadsheet, and mentioned that the maintenance position will also necessitate vehicle expenses;he noted the janitorial services are actual costs; and that these figures show a 5.21%overall reduction. Mr. Calhoun said the maintenance position is a new position/program, so there is no history upon which to build, so these costs were based on costs incurred at CenterPIace; he noted we will continue to refine these over the next few years, adding that we will likely need to purchase some equipment in the future, such as a snow blower. 10. Community&Public works--Building &Planning—Doug Powell Mr.Powell briefly went over some of the information on this sheet,and mentioned the merging of the front desk; he also noted an overall increase of 1.63%. There was some discussion about credit card fees, and Mr.Powell said as a result of us colleting those fees,many people now pay with a check.Parks&Recreation Director Stone said he is seeing a similar trend at Parks and Recreation. 11. Community&Public Works—Engineering—Bill Helbig City Engineer Helbig explained that this chart shows figures as part of the re-organization; it takes care of all capital improvement programs, traffic management and operations, and utilities; he explained that positions were re-allocated more appropriately to where they spend their time; he noted that as part of the amended budget, the senior plans engineer position was brought into engineering to oversee computer drafting standards; he shared that the shaded portion on the sheet is general engineering, and the unshaded portion is development. Mr. Helbig also explained that previously planning had borne the cost completely for the Spokane County GIS, but that Mr. Koudelka has worked on that and costs are now allocated for different departments, including planning,engineering,stormwater,etc.;he said it is an adjustment of about $60,000. Mr.Helbig also noted that the increases of 43% is for non-payroll increases. 12. Community&Public Works—Economic Development—Mike Basinger Mr. Basinger said that this since this is a new division, there isn't a lot of history upon which to rely; he explained the purpose of economic development; mentioned the 6.375 FTEs, of which he is one; briefly mentioned the City's Hot Topics newsletter and said while he realizes people are accustomed to seeing that in their homes, it might be electronic in the future. Councilmember Wood asked why not have various departments share the expense of Hot Topics, and Mr. Calhoun said they are leveraging a variety of talents in the economic development department, including the public information officer, and marketing programs, and that this seems like a good place to have it, and it is convenient having it in one place as it makes it easier to determine cost, adding that it does relate to all City operations, 13.Parks & Recreation—Mike Stone Director Stone stated that his budget is primarily status quo; he mentioned that CenterPlace is open seven days a week, sometimes for more than eighteen hours a day,which he said poses challenges regarding staff. Mr. Stone noted that under professional services,there are problems with the pump in the Mirabeau Pond, also the liner is eroding and there is erosion off the banks; said they will hire a consultant next year to take a look at that and develop a plan. Concerning Appleway Trail, Mr. Stone said they have not had funding for"theming" the trail, but have hired a consultant to put together a plan.Mr. Calhoun mentioned the trail and upcoming work to add some amenities; said that in 2019 we will be designing the trail from Evergreen to Sullivan, and in 2020 that will be constructed giving us a contiguous trail; there is also the idea of not only developing a theme for each section, but perhaps a connection to the Centennial Trail. Mr. Hohman stated that staff have also discussed the need to update the pedestrian master plan which was completed in 2011, and they will also examine some aspects of the Centennial trail and other connections, and perhaps even some new trails. Mr. Stone mentioned that among other things, his department processes special events; said they are close to acquiring full sponsorships for all the outdoor movies; that the aquatics division operates under the auspices of the Y,which handles operation and maintenance of all three outdoor Council Special Meeting Workshop:06-12-2018 Page 6 of 13 Approved by Council:07-24-2018 pools for a small fee plus actual costs; adding that the minimum wage change has had a big impact on that budget. Mr. Stone noted that the admission charge to the pool is $1.00, and that the City of Spokane has reversed itself and gone back to not charging and that city will track that impact. Mr. Stone also reminded. everyone that there is a new grant which will provide some free swims. Lastly, Mr. Stone mentioned the Senior Center and the CenterPlace division,which also depends on seasonal workers,and that too has been affected by the change to the minimum wage. Tab 14—Supplemental Budget Requests—Chelsie Taylor and Mark Calhoun Finance and Public Safety: City Manager Calhoun said that some departments are considering expanding, some of which would be recurring expenses and some of which would be a one-time request.After Finance Director Taylor went over the summary sheet showing the recurring, and nonrecurring expenses, Mr. Ifoudelka explained the request for carpet in our precinct building;said they have managed with scraps and leftovers for workstations, and we are attempting to get them caught up with adequate workstations and carpet replacement. Finance Director Taylor then went over the request for increases in travel and registrations in conjunction with staff training for IT to keep updated on the newest technologies, and for finance staff to keep current on accounting standards,without which she said could impact auditing. Community & Public Works/Street Fund/Capital Projects/Engineering: Deputy City Manager Hohman explained that although this is difficult to bring forward, there are a lot of good reasons to do so. Mr. Hohman said that we have tried to keep the employee count as low as possible, but feel the time has come to examine our staff numbers. He stated that as we went through the consolidation last year, they tried to make it as efficient as possible, adding that staff is working extremely well together and are sharing resources;but he said there is one glaring thing which is a lack of the ability to produce plans internally and externally with consultants in engineering; he said this is not as a result of any inefficiencies gained in the consolidation, but rather that they have matured to a point where the workload has increased on the number of projects as well as grants;and that the requirements on staff to make sure all the documents are completed correctly increases dramatically annually;he noted that the Washington State Department of Transportation puts out a manual update twice a year, and each time that is updated it contains new requirements; he said we can't keep up with those new requirements for all these grants, especially given the number of multi- million projects. Mr. Hohman said this minimal staff increase will put the assistance in the right place to have production teams that move the projects through the process. He said we just don't contract things out,as we currently have staff that designs and then inspects the projects in the field, adding that there is a lot of coordination that the consultants don't do as well as a lot of oversight on every project. Mr.Hohman noted that on the Barker Road Grade Separation Project, our staff takes the brunt of the workload trying to make this project move forward and flow safely, smoothly and efficiently in order to hit the timing marks set; said they have looked at the efficiency of the existing group and we have outgrown the previous staff model to have a designer design, and then go inspect; he said that is not working for us and we should be designing projects for 2019,but staff members are out inspecting; said we can't have staff putting in 14-16 hours to make sure the bids get out timely. City Engineer Helbig said this decision to request positions is based on how production works; that for five FTEs, over three of them would go directly to projects and not the general fund; there would be 1.5 FTE associated with the street fund as construction inspectors in the summer and part of the snow removal crew street maintenance workers in the winter; adding that of course we can't quantify figures as we don't know how much snow we will get next winter. Finance Director Taylor said the 2018 adopted budget includes 89.25 FTEs, and this proposal for 2019 will put people where they are actually spending their time.Mr.Calhoun added that if this proposal goes forward as planned,the general fund would actually drop by one FTE;he noted the positions are needed because of the number of capital projects we have; that we have the grant money and can afford it, but if the work and/or grant money goes away, so would the positions. Engineering Manager Mantz then went over the information contained in the PowerPoint paper copies,which included a breakdown of the capital program operations and the necessary staff, the additional duties for project managers and engineering technicians, Council Special Meeting Workshop:06-12-2018 Page 7 of 13 Approved by Council:07-24-2018 other increased workload including an increase in federal documentation, a graph showing the 2018/2019 project manager workload and another showing the 2018 construction inspectors workload, as well as unassigned workload;historical supplemental staffing;and staffing requirements for current and anticipated workload. Mr. Hohman mentioned that people who do designs and actual CAD drawings have a special skill. As noted on slide 7, Ms. Mantz pointed out that we issued an RFQ for inspection services but we cannot predict exactly when a project will start, which means we could not get a company to commit resources to us; she said we are looking for consultants far in advance, as it is difficult to find people to commit to our projects; she said that we can do production year round with these additional staff and therefore would not have to wait until the last minute to get the help we need. Mr.Calhoun stated that these five additional FTEs represent about a 6% increase in the City's workforce;that Mr. Hohman, Mr. Helbig and Ms. Mantz offer compelling arguments and this is something to seriously consider as we work in the 2019 budget development. At 12:04 p.m. the group recessed for a thirty-minute lunch. At 12:40 p.m. the meeting resumed and Mr. Calhoun asked Council if there were any questions or comments. Councilmember Peetz stated that while she appreciates the work of staff,she is not comfortable with adding five positions. Mr. Calhoun also mentioned we currently have a variety of vacancies, including the unfilled administrative position on the third floor as he stated he feels there isn't enough work for that position to be full time. He noted that from his perspective, along with the staffs position for adding the positions, we have received comments from WSDOT (Washington State Department of Transportation) about our ability to properly manage specific projects, such as the Sullivan Road Bridge replacement as well as future workload;that several projects are held for the future as we don't have enough staff to cover them all.Mr.Helbig mentioned the past Sullivan Bridge project and that one of the problems was we needed more staff; he said we are working with the corrective action plan and said that WSDOT had to take two existing staff and put them working just on documentation for federal and state funded projects. Mr. Calhoun noted he is not interested in loading additional expenses in the general fund;that this will not have an impact on the general fund;that we are currently experiencing a strong economy; we need to assign staff directly to capital projects where the need exists, and if we run out of work or City money or grant money, then those positions would be removed. He added that these positions do not compete for existing levels of service. There was discussion about the evolution of staff, including the current reorganization; that we need to be able to get projects out to bid in January and February in order get good bids as issuing calls to bids late leads to expensive bids received. Mr. Hohman stated that public works is the same as before except we call it the engineering division with the addition of development engineering,and he noted that these production problems are a product of our growth and maturity as well as the types of projects we are working on; he noted that Adam Jackson is finding money and that we have different funding sources not traditionally available in the past; there are increased workload documentation requirements that has evolved over the years and WSDOT has their own personnel for the Disadvantaged Program that they never had before, which makes sure we are doing our jobs appropriately; he said the manual guidelines continue to change and that City staff have been putting this off for a long time or supplementing those needs with limited term employees that Council never saw as they weren't classified as an FTE or included in the organizational chart; said he realizes that five positions is a lot but there is also an unprecedented amount of development work going on now, and the residential side on permitting takes much more time than commercial permitting;he said they are all working hard and tasked with a lot of work. Mr. Hohman noted that at some point the permits will drop off as it fluctuates throughout the year and from year to year; but this is something we are projecting for at least five years of solid work, and said he feels this is a better structure. Mr. Hohrnan said we want to keep the employee count low but we also want to make sure we produce and do it in a way to minimize errors and allow us to get the projects though with minimal change orders, and it takes staff to get it done. Mr. Helbig noted that adding five is a lot and that the market place is tight, and said they have been unsuccessful so far in filling an assistant engineer position, but hope it can be filled in Council Special Meeting Workshop:06-12-2018 Page 8 of 13 Approved by Council:07-24-2018 the near future;he also added that Craig Aldworth will be retiring soon so we are recruiting for that position, but so far only two people across the country have applied. Councilmember Thompson asked if there has ever been a grant administrator or someone in charge of tracking every grant and what needs to be done. Mr.Helbig said that typically making sure reimbursements are correct would fall under a grant administrator, but not making sure each piece of paper required is documented;that grant administrators deal with dollars. Mr.Hohman noted that in the slides,two positions are proposed to be re-purposed to do just that, i.e.track down all documents and put files together and make sure nothing is missed; that by taking two positions and putting them on the documentation trail,that is two less positions we have available for production; and having drafting inspecting during the summer is not efficient; he noted that Engineer Chad Phillips is stretched as far as he can and has no backup, and so the production is what we need these positions to address.Mr.Hohman said he feels very confident that for the next five years,we will have solid work for these positions; but beyond that, it is difficult to project, adding that if there is a decline in the economy, we can make adjustments when necessary. Councilmember Woodard said that staff has been asked for a long time to do a Lot of work with next to nothing; that five years ago our City's population was 10,000 fewer and we didn't have these large projects. Mr.Hohman asked what are Council's expectations or desired policy;he said we don't have to pursue every project or grant and if Council is uncomfortable, maybe we could be more realistic of what we can and can't handle;said he has high expectations about the quality of the product we turn out,and maybe a middle ground somewhere is better, or not pursue or avail ourselves of grant opportunities if we can't follow through. Mr. Calhoun noted we continue to drive hard on grants and get as many projects we can while grants are available, and Deputy Mayor Haley said she feels there is more grant money out there now so we should take advantage of that as it might not be available in the future. Mr. Hohman stressed that he is not intending to come off too strong, but rather bringing this up for discussion;that it is not staff's intention to be defensive or aggressive, but that it is very hard work to work at this level for so long and still be able to produce the excellent results Council and Citizens want, as we are passionate for what we do. Councilmember Wood suggested maybe go out and get more grants and hire ten people; he rhetorically asked why we are only asking for five if ten can get us more,and what is enough; said the question is, how much do you want to do and stated that this sounds urgent to him. Mr. Calhoun said he feels five positions will take care of the work into the foreseeable future. Community & Public Works/Economic Development: Economic Development Manager Basinger explained that this request is for $18,000 to establish a contractual arrangement with Greater Spokane Valley Chamber similar to what we have done in the past with Greater Spokane, Inc. He noted we have developed a great rapport with the Chamber and we would like to give them some consistency. There was some discussion about the average past outside funding that was awarded to the Chamber,and Mr.Basinger said this figure is indicative of that past funding. Mr. Calhoun said he likes the idea of a separate contract so we could work with them to develop a scope of service meaningful to Spokane Valley. Councilmember Wick suggested perhaps even rounding that number up to $20,000, but that at the same time, we do not want everyone who applies for outside funding to go through this process as well. Mr. Calhoun said he will look at this relative to the$200,000 for outside agencies, and there were no objections from Council. Parks & Recreation: Director Stone went over his requests for supplemental funding, including the introduction of a new teen summer camp program which can be priced so there is a full cost recovery; a new free walking program for 2019 to walk on the trails around Mirabeau Park and CenterPlace; $160,000 to design and construct a new restroom at Browns Park;$25,000 for a swing set complex at Edgecliff Park; and $40,000 to recoat and repair the `poured-in-place' surfacing at Discovery Playground.Councilmember Thompson asked if there would be swing sets to accommodate kids in wheelchairs, and Mr. Stone said he would research that. Council Special Meeting Workshop:06-12-2018 Page 9 of 13 Approved by Council:07-24-2018 Mr. Calhoun noted the last page under Tab 14 concerns a perimeter path and lighting at Browns Park and that$200,000 has been approved and is in the 2018 budget for that purpose. He noted what we have spent for design services and the remaining budget is about$177,000; he said this was put out for bids and we received two proposals, both of which were substantially greater than the$177,000 budgeted. He noted the question is now, do we ask for another$125,000 to get it bid out or shelf it and determine what we can do with$177,000.Mr. Calhoun noted that the Plan calls for eight additional volleyball courts. He said that we propose to use our own staff; that our Public Works Maintenance Superintendent Shane Arlt and his crew could do a lot of the work, and therefore,Mr. Calhoun said he is inclined to move ahead with this and get it done some time after the busy summer season, but before the winter snow, and he asked for Council input. Mayor Higgins said it appears to be a great way to move ahead, and Mr. Stone noted we can get it done for a tremendous savings instead of trying to bid it out. Deputy City Manager Hohman noted that Council indicated they have always wanted to see this move forward; we need to get the courts built, but that it has been difficult to get any funding through the LTAC(Lodging Tax Advisory Committee)process. Councilmember Woodard said he feels this is a good project to get completed,and once completed,it would be the largest sand volleyball court outside of Oregon; said he thinks we should do this and maybe take some funds from the upcoming budget surplus, perhaps another $1 million and get that park done. Councilmember Wick expressed his agreement. There was no strong Council opposition so Mr. Calhoun said it is his intention to set aside this project for this calendar year, and forge ahead for the volleyball courts. Tab 15—Street Operations &Maintenance Fund—John Hohman Mr. Calhoun said that this issue will come again at the July 10 Council meeting to follow up today's conversation, and that he wanted to give Council some information concerning what is included in the proposed$4.783 million and how to address that future deficit. Mr.Hohman then went through the various spreadsheets highlighting some of the changes, including the increased fuel costs; the additional $70,000 for street scanning, adding that we are still evaluating options but we do want the streets scanned next year; the small increase in some contracts for dead animal removal, which is those animals that SCRAPS does not pick up. Mr. Hohman noted the boxed figures on page 2 of 3 are associated with bridge maintenance; he explained that Spokane County formerly performed that service, but they do not have staff to do that anymore so we contract with a private company.Mr.Helbig mentioned signal detection and that our aging infrastructure has never been included in the budget;he noted some of our signals are more than thirty years old and need replacing and/or upgrading, and we will start allocating funds every year for that operation. Mr. Hohman said that we have an aging snowplow fleet and noted the associated costs to keep those trucks running. Councilmember Woodard mentioned he would like to see more discussion at a future meeting concerning snow plowing and associated issues such as slowing down the plows,and Mr. Calhoun said we will put that on the pending agenda prior to the start of the next season; and that some of what we have learned is that slowing down the plows takes longer, cost more money, is less fuel efficient, and results in bigger berms. Moving to Street Fund 101 Strategies, as per the paper slides, Mr. Hohman noted some of the discussion points for this topic include revenue needs,challenges,and shortfalls; said the immediate need for fund 101 is to make sure we have necessary revenues to handle expenditures; said staff issued a request for qualifications (RFQ) and received five responses from firms specific to handling street preservation programs; said out of those five, two are renowned experts, and said he will be working to verify the numbers. Mr. Hohman went over the options shown on slide 9,then moved back to slide 4 to discuss those expenditures; said if we had to reduce expenditures, it would come from the street maintenance which includes among other things, pothole patching, asphalt repairs, concrete and sidewalk repairs, landscaping litter and weed control. Mr.Hohman said we do not need an in-depth discussion today as we will talk more about these issues in detail over the next months. Mr. Calhoun noted a question to consider is,how far will the existing phone tax decline;said we have a good handle on operations and related costs but the pavement preservation problem is about$800,000 and growing; and he noted the IMS (Infrastructure Services,LLC) Council Special Meeting Workshop:06-12-2018 Page 10 of 13 Approved by Council:07-24-2018 study suggests there is perhaps an even greater need than their study suggests;said perhaps we should select someone else to review the numbers to give us a figure we are more comfortable with;said cutting$800,000 in expenses from the street fund 101 is not a good idea,but we either cut services or come up with$800,000. Mr. Calhoun said we are asking Council to solve a financial problem in two different funds at two different times;that we are just warming up to the idea of a one-time stop gap out of the general fund, fund balance in excess of 50%,and move forward until we can come up with total deficit numbers; said he does not want this conversation at two different points in time as it is more fair to Council and the community to address this all at once in 2019 once we have better figures to come forward. Some members of Council nodded in agreement, and Councilmember Wick stated he agrees with Mr. Calhoun's suggestions. Councilmember Thompson indicated she also likes that direction as it gives the added benefit of slowing down the education process for citizens. Mr. Calhoun suggested that if we go with the contract with the Chamber, perhaps we could reach out to them to help us communicate this issue. Mayor Higgins agreed and said this will buy us some time and then once we have the figures, we can proceed. There was apparent consensus to move forward as Mr. Calhoun suggested. Mr. Calhoun noted this will come before Council again at the July 10 meeting,and Mr.Hohman noted that Mr.Lorick of LA Consultants will return in the next few months with some recommendations to Council. Tab 16—Stormwater Fund—John Hohman City Engineer Helbig went over some of the figures, particularly those showing change; he mentioned the staffing allocations where there was originally one person spread across different funding sources; he said the main increase is the Spokane County GIS,which is purported to be better and more accurate.Mr.Helbig stated there will be some increases in costs over the next few years; that the Department of Ecology has selected us for some grant funds which had been put on hold in 2015,and said the legislature released those funds this year; he said our match is about 25% which means one to two million coming out of next year's budget;and Ms.Taylor mentioned that some of those capital projects would fall under the aquifer protection fund 403. Tab 17--General Fund—Fund Balance—Mark Calhoun Mr. Calhoun briefly remarked on the general fund,fund balance; said the simplest explanation is it matches six months of expenditures and is based upon cash flow; he brought attention to page 5 of the memo which shows how much the general fund has transferred out into the capital reserve fund,and where all those fund have been applied. Tab 18—Potential&Pending Capital Projects—Mark Calhoun, Chelsie Taylor Finance Director Taylor gave an overview of how this spreadsheet was put together; she mentioned the boxed area and the yellow highlighted areas; said the project allocations for Pines Road Underpass, Barker Road corridor improvements, and Balfour Park development are highlighted in an effort to promote discussion.City Manager Calhoun noted that plugging$800,000 into fund 101 as a one-time remedy,would leave about $2 million; said Council had settled on spreading the surplus on these three projects, adding that when a project makes this sheet we find a way to get it done and we don't want to spread those funds too thin; said the key is to focus on specific projects and said he would recommend having no more than three or four projects. Mr. Calhoun invited Council comments. Councilmember Peetz suggested not including Balfour Park since are not currently working on that project. Councilmember Wick suggested putting $1 million toward getting Browns Park completed this year. Concerning the$3.9 million surplus,Councilmember Woodard suggested to instead put that in the budget, then decide next year on the 2017 surplus; said we might want to finish the CenterPIace West Lawn; also mentioned there will likely be a bond issue on the library in the future, and he'd like to get the West Lawn completed before we get to Balfour. Mr. Calhoun asked if there was Council consensus to take $1 million and apply it to Browns Park, adding that he is not certain $1 million would take care of it; and he would like to bring to Council as a future admin report,what has been done on the Master Plan and what$1 million Council Special Meeting Workshop:06-12-2018 Page 11 of 13 Approved by Council:07-24-2018 would cover. Deputy Mayor Haley said she would like to see the lighting put in as a priority. Councilmember Wick mentioned the LTAC larger amount of set-aside funds and that perhaps we should buy some property, or use it as a match for land acquisition. Mr. Calhoun noted that the July 10 Council meeting will have an admin report in that regard and then a motion later to narrow the Tourism Venues and Events list down from ten to perhaps two or three, and then maybe tie that into the budget; he asked what does Council want to carry forward to apply for LTAC funds, and what kind of match money would the City put in from the general fund. Councilmember Woodard asked how we might go about tying in Appleway Trail to Mission Hills and how to connect the trail to Centennial trail across Flora;said we should also think about what events we could have that would draw in people from outside the community, and also perhaps as a `thank-you' to the citizens, maybe have the symphony perform; said he has talked to Valleyfest about that as well; said the symphony used to draw in between 5,000 and 6,000 people to Terrace View and that was just a partial symphony; said he sees that kind of event as a `thank-you' to the citizens and that it brings culture to the valley. Mr. Calhoun said tying Mission Hills and/or Centennial Trail into Appleway trail will be discussed more as we present a future update to Council on the MasterPlan for trails, and asked if Council would like to include that in the 2019 budget. Councilmember Wick said he would like to have more discussion. Mayor Higgins suggested a summer event of not just a single event but a three-day event culminating with the symphony,or blues,jazz,etc.,and sponsor it with our funds and have an organization run it. Councilmember Wick remarked that Liberty Lake has "Friends of the Park" so perhaps that would be a good model to examine. Mr. Calhoun said we will look at the idea of taking $1 million from the general fund to Browns Park, and an overlay of the park masterplan will be brought to Council for discussion at the July 10 Council meeting. Tab 19—Fiscal Policies—Mark Calhoun City Manager Calhoun noted that this information is included in the 2018 budget, and he gave a brief overview. Tab 20—Council Goals—Mark Calhoun,Council Mr. Calhoun noted the 2018 Council goals,and asked if Council has any edits for 2019. The result of those discussions is as follows: 1. Continue to work with state and federal legislators towards obtaining financial assistance for the Barker and Pines Grade Separation Projects. Suggestions: omit Barker and add in Park Road and include `Bridging the Valley' 2. Continue to pursue a plan to sustain the City's Pavement Preservation Program to include sustained financing in Street Fund#101 and Pavement Preservation Fund#311. Suggestions: remain as stated 3. Pursue a strategic plan for financing and completing all grade separation projects. Suggestions: this is a repeat of goal 1; omit this goal. 4. Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. Suggestions: remain as stated 5. Pursue financing for Browns Park, Balfour Park, and Appleway Trail amenities, and continue the acquisition of park land. Suggestions: Council agreed to continue with the trail amenities such as lighting and benches. Councilmember Wood suggested adding completing the loop and develop a plan to do that, and Mr. Calhoun said that can be addressed under the Bike and Pedestrian Master Plan. Councilmember Woodard suggested adding pursuing financing for the CenterPlace west lawn, and Councilmember Wick said he Council Special Meeting Workshop:06-12-2018 Page 12 of 13 Approved by Council:07-24-2018 would prefer not having a goal too diluted with too many items, but perhaps a few things. Mr. Calhoun stated that could be a separate goal,and Mayor Higgins said we are already pursuing that,and Mr. Calhoun noted those ten projects will be discussed July 10, and Councilmember Woodard agreed not to include CenterPlace park for this goal. 6. Continue and expand where possible economic development efforts. Complete the development of implementation strategies for the retail and tourism studies that were completed in 2016. Mr. Basinger said that more recently staff has been working with a retail recruitment firm to determine what gaps we have in retail, and to try to bring in the appropriate retailers. Mr.Hohman noted that this was scheduled for a previous Council meeting but the individual left the company, so that will be rescheduled and a future discussion. Councilmember Wood suggested maybe include having a sports facility; said the TPA would support that and we could put money aside, and have discussion about identifying a location. Mr. Calhoun said this will be carried forward at the July 10 meeting 7. Foster relationships with federal, state and local legislators including the Spokane County Board of Commissioners. Suggestions: remain as stated Mr. Calhoun said we will drop goal#3, and he will edit the other goals and will e-mail those to Council for response back to him.Councilmember Peetz said she would like to add a goal of more community outreach; said there are people who have Century Link and they have a problem viewing our meetings; said we also have a lack of social media, and she suggested holding a town hall or an event to get the community involved, and she asked if there is software to help in that regard. Mr. Calhoun said there are such things as "page freezer" that we use to capture our tweets that go out, and could be used to capture activity in a Facebook account; he said we are looking forward to those issues, adding that we have a vacancy in our Public Information Officer position, so we are in the process of re-writing that job description. Councilmember Thompson said perhaps we could increase the use of all means of communication for more community outreach, and Mr. Calhoun said that perhaps we could make that a group project. Tab 21—Advance Agenda—Mark Calhoun There were no comments or suggested changes to the Advance Agenda. It was moved by Deputy Mayor Haley, seconded and unanimously agreed to adjourn. The meeting adjourned at 3:15 p.m. I sr ATT S • L.R. Higgins,I . J gr -TAU /r Christine Bainbridge, City Clerk Council Special Meeting Workshop:06-12-2018 Page 13 of 13 Approved by Council:07-24-2018