2019, 09-24 Regular Formal Formatf MINUTES
SPOKANE VALLEY COUNCIL REGULAR MEETING
FORMAL FORMAT
Spokane Valley City Hall Council Chambers
Spokane Valley,Washington
September 24,2019
Mayor Higgins called the meeting to order at 6:00 p.m.
Attendance:
CounciJmexnbers Staff
Rod Higgins,Mayor Mark Calhoun, City Manager
Pam Haley, Deputy Mayor John Hohman,Deputy City Manager
Brandi Peetz, Councilmember Caiy Driskell, City Attorney
Linda Thompson, Councilmember Chelsie Taylor, Finance Director
Ben Wick, Councilmember Mike Stone, Parks &Recreation Director
Sam Wood, Councilmember Karen Kendall, Planner
Arne Woodard, Councilmember Caitlin Prunty,Attorney
Bill Helbig, City Engineer
Mike Basinger, Economic Development Mgr
Mark Werner, Police Chief
Christine Bainbridge, City Clerk
INVOCATION: Pastor Mike Szott of Living Hope Community Church gave the invocation.
PLEDGE OF ALLEGIANCE Council, staff, and the audience stood for the Pledge of Allegiance.
ROLL CALL City Clerk Bainbridge called the roll; all Councilmembers were present.
APPROVAL OF AMENDED AGENDA It was moved by Deputy Mayor Haley, seconded and
unanimously agreed to approve the amended agenda.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS nla
COMMITTEE,BOARD,LIAISON SUMMARY REPORTS
Councilmember Wood: no report.
Councilmember Peetz: reported that she attended the Business Connections Breakfast where they had a
panel discussion about mental health issues; went to the Katerra grand opening; said she had her first
committee meeting this year [referring to the Tourism Promotion Area Committee, also known as the
Spokane Hotel/Motel Association] and said the committee voted for no changes; she mentioned that for the
month of June, Spokane Valley room nights carried all the other jurisdictions; said she attended Valleyfest;
and went to the Sandpoint Chocolate Bear grand opening today, which was formerly in Sandpoint but has
now relocated to Spokane Valley.
Councilmember Woodard: said that he also attended the Katerra grand opening and Valleyfest;attended an
STA(Spokane Transit Authority)meeting standing in for Councilmember Wood;went to the Connections
Breakfast as mentioned above, which had a great panel discussion about mental health and insurance
benefits; said that Inland NW Partners has outgrown their location at the Hayden Country Club and are
looking for a more permanent location; and said they were talking about market placing and tourism.
Councilmember Thompson: mentioned she attended the Board of Health fiscal committee meeting as well
as their policy committee; said this Thursday that Board will meet again and they are doing well fiscally
and expanding with new resources; concerning the policy committee, said they are working on becoming a
united voice for advocacy for the health and well-being of our community with legislators who support the
Regular Formal Council Meeting: 09-24-2019 Page 1 of 6
Approved by Council: 10-08-2019
mental health platform; said she also attended Valleyfest and the Chamber breakfast, and again mentioned
Christine Dugger as one of those chosen as a 2019 Women of Achievement Honoree.
Councilmember Wick: said that the Health District's new administrator is now on-board and they are
looking forward to the budgets and trying to get it done prior to the legislative session; said Visit Spokane
tracks hotel stays and revenue per occupied rooms and the data shows Spokane Valley's growth of about
16%between 2018 and 2019 which he said,makes us the largest percentage growth in revenue per occupied
room out of all regional partners and their comparable jurisdictions; said there is no clear correlation on
events and growth,and it is thought it could be attributed to sports activities;he also mentioned the ongoing
training at Fairchild Air Force Base which results in an influx of people which also means more room
nights; he mentioned that FMSIB (Washington State's Freight Mobility Strategic Investment Board) has
changed the way they allocate funds for projects and now all FMSIB projects are subject to a re-
appropriation through the legislators and FMSIB will not be making their own allocations; he explained
that projects already awarded will be to be re-approved and go through the legislative process and become
part of the LEAP(Washington State Legislative Evaluation &Accountability Program) list; and lastly said
he attended the Valleyfest parade and event, and he extended thanks to staff and local businesses who
helped with the bed race.
Deputy Mayor Haley: said she attended many of the same functions as noted above; and she extended
thanks and kudos to Dishman Dodge for loaning us two jeeps and drivers; she mentioned that STA bus
route 95 doesn't go to the hospital, but does go to CHAZ and urgent care, and said the main reason for the
route is CHAZ and Urgent Care; said she attended a Jail Task Force meeting where they discussed the cost
of housing an inmate; said we spend thousands keeping them in jail and that many cannot afford to post
bail; and said the committee members are examining the figures.
MAYOR'S REPORT
Mayor Higgins said he attended many of the aforementioned activities; and mentioned a special note to the
Finance Department; that we had our audit exit and it has become commonplace to receive a clean audit,
but this audit also commended the department on how well they conducted the process.
1. CONSENT AGENDA: Consists of items considered routine which are approved as a group. Any
member of Council may ask that an item be removed from the Consent Agenda to be considered separately.
Proposed Motion:I move to approve the Consent Agenda.
a.Approval of claim vouchers on Sept. 24, 2019,Request for Council Action Form Total: $4,709,393.45
b. Approval of Payroll for Pay Period Ending September 15,2019: $354,484.62
c.Approval of Council Meeting Minutes of September 6, 2019, Special Meeting
d. Approval of Council Meeting Minutes of September 10, 2019,Formal Meeting Format
It was moved by Deputy Mayor Haley, seconded and unanimously agreed to approve the Consent Agenda
NEW BUSINESS:
2. Second Reading Ordinance 19-013 Street Vacation 2019-0003 —Karen Kendall
After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Haley and seconded
to approve Ordinance 19-013. Planner Kendall stated that there have been no changes since the first
reading,and that she is available for questions. Vote by acclamation: in favor:unanimous. Opposed:None.
Motion carried.
3. First Reading Ordinance 19-014 Code Compliance Amendments—Caitlin Prunty
After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Haley and seconded
to advance Ordinance 19-014 to a second reading. As noted in her PowerPoint presentation, Attorney
Prunty gave the history and background and explained the proposed changes to the code. Mayor Higgins
invited public comments. Ms. Barb Howard, Spokane Valley: stated that she has been dealing with
problems concerning an address in her neighborhood; that in June, 2019,the person was given until July to
come into compliance, but said that address is still not in compliance; said there is nothing in the code to
Regular Formal Council Meeting: 09-24-2019 Page 2 of 6
Approved by Council; 10-08-2019
address anything that burns and that she has had to put up with a burnt trailer behind her; said there was
another fire at Sunrise,which is a 55+area; said when code enforcement views these properties,they should
also view the backyards as the one address has four vehicles in their backyard and it is still not cleaned up;
said she understands working with people to come into compliance, but said she wondered how long; said
the cars have no license plates; that the complaint has been turned in but nothing has been done; said there
is another address that has a continuous yard sale. There were no further public comments. Vote by
acclamation: in favor: unanimous. Opposed.' None. Motion carried.
4. Motion Consideration: Reappointment of citizen to HCDAC —Mayor Higgins
It was moved by Deputy Mayor Haley and seconded to confirm the Mayoral appointment of Tom Horinel
to the Spokane County Housing and Community Development Advisory Committee for a three-year term
pending official appointment by the Spokane County Board of Commissioners.As noted in the Request for
Council Action, Mayor Higgins explained that he would like to re-appoint Mr. Hormel to this committee.
Councilmember Peetz said one of her family members has a relationship with Mr. Hormel, but that she
feels she can still be objective and make a good decision concerning this motion. Councilmember
Thompson said the process and timing is frustrating as we didn't have a chance to have others apply; and
also that she would have liked to have seen perhaps more information in Mr. Hormel's application under
the section of why he seeks re-appointment. Mayor Higgins invited public comment; no comments were
offered. Vote by acclamation: in favor: unanimous. Opposed:None. Motion carried.
5. Motion Consideration: Circle M License Agreement—Cary Driskell
It was moved by Deputy Mayor Haley and seconded to approve the license with Circle MFamily Properties,
LLC,for the limited use of University Road in substantially the form presented, and to authorize the City
Manager to take all actions necessary to finalize and execute such license. After Mr. Driskell briefly
•
explained the purpose of the license agreement, Mayor Higgins invited public comment. No comments
were offered. Vote by acclamation: in favor: unanimous. Opposed:None. Motion carried.
6. Motion Consideration: E2SHB 1923 Urban Density Grant Opportunity—Mike Basinger
It was moved by Deputy Mayor Haley and seconded to authorize staff to proceed with the application for
funding to develop a housing action plan. Mr. Basinger highlighted some of the aspects of the bill,as noted
on his Request for Council Action form; he mentioned the twelve land use regulatory actions, and said that
the City has a choice to voluntarily take two of the listed actions, or adopt a housing action plan. Mr.
Basinger said the intent of the bill centers around the nationwide affordable housing issues; he also
mentioned that of those twelve land use regulations actions, anything we have already done will not count
toward those twelve; and noted if we don't have a plan,we can't apply for those funds. Mr. Basinger noted
the extremely short time frame of the grant application,as the due date is September 30,2019. In response
to Council questions,Mr. Basinger said we would likely hire a consultant to draft a housing plan, and that
would cost an estimated $100,000, not including staff time. Deputy Mayor Haley asked if we get funding
and then decide not to do any of the options,would we be required to pay back the grant.Mr. Basinger said
he didn't see anything to address that question; but said if we did a housing action plan, we would want to
come up with something in conjunction with that plan. City Manager Calhoun noted staff has been
discussing this and there are options; but we are not trying to push Council one way or another,but wanted
to make Council aware of this potential grant. There was brief mention of the UGA (Urban Growth Act)
and our growth boundaries with Mr. Basinger explaining that most actions increase density, which gives
more capacity within a jurisdiction, and therefore would mean we likely would not need to expand the
UGA; he said there is an estimated $2.6 million to split throughout the State of Washington.
Councilmember Thompson said she feels we are somewhat'over a barrel' since we don't get funds without
applying, but also we might not get future funding.
Mayor Higgins invited public comment. Mr. Mike Dolan, Spokane Valley: said it sounds like Olympia is
trying to have a program to alleviate housing issues and use the scare tactic,that if you don't apply, you
Regular Formal Council Meeting: 09-24-2019 Page 3 of 6
Approved by Council: 10-08-2019
won't get it; he questioned if this fits our way of life and again noted we don't need to be scared or
intimidated.Ms.Barb Howard, Spokane Valley: said this is about affordable housing but what exactly does
that mean; said there are section 8 housing rentals but they are not low income; said it takes about$5,000
just to get into an apartment in Spokane Valley.There were no further public comments.
Councilmember Wood said the issue is density and that's how you get affordable housing, it's with more
housing per acre; said he sees no problem in developing a housing plan to try to deal with some of these
affordable housing issues. Councilmember Woodard said be does not feel comfortable voting for this as
he feels it is rushed. Deputy Mayor Haley asked if we could refuse a grant if awarded one,and Mr.Basinger
said he doesn't see why we couldn't do that. Mayor Higgins added that we will have to deal with this sooner
or later, and that he would rather deal with it on our own terms. Vote by acclamation (and also by show of
hands):In favor:Deputy Mayor Haley, and Councilinembers Thompson, Wick, and Wood. Opposed:Mayor
Higgins and Councilmembers Peetz and Woodard. Motion carried
PUBLIC COMMENTS: After Mayor Higgins explained the process, he invited public comment.
Mr. Arthur Whitten,City of Spokane: said he is here tonight on behalf of the County Treasurer's office and
their news regarding the property tax deadline of October 31,which usually results in a tax rush and a lot
of foot traffic; said there can be barriers sometimes in coming downtown, including parking, and that the
Treasurer's office is not open on Fridays after 1 p.m.; said in cooperation with the City of Spokane Valley,
a representative from the County Treasurer's office will be Spokane Valley City Hall on Fridays in October,
to accept property tax payments; said this is a great opportunity for citizens and a convenient way to make
tax payments, all at no additional cost to taxpayers; and he thanked the City of Spokane Valley for the
opportunity to work together.
Ms. Ashley Quinn, Spokane Valley: voiced her concerns about a stretch of road on 4th between Sullivan
and Conklin; said there have been a lot of speeders and multiple accidents on that road; said a lot of kids
live in those apartments,and she wanted to make the issue known. Per City Manager Calhoun's suggestion,
Ms. Quinn gave her contact information to City Clerk Bainbridge so that staff can respond to her concerns.
Ms. Peggy Doering, Spokane Valley: she extended thanks to Council and the community for their
participation in this year's Valleyfest; also extended extra thanks to the motorcycle officers on the parade
route Friday night, and to SCOPE volunteers who worked the entire weekend, and thanked the Fire
Department and members of the AMR Medical Response team; she extended thanks to the Parks and
Recreation staff for their unlimited time and efforts, and to Senske for help with the garbage.
Ms. Barb Howard, Spokane Valley: said that during a November 17, 2014 Council meeting, Ms. Wilhite
spoke about how she was appalled at the condition of the roof at CenterPlace;thanked the Finance Director
for the budget; said our City made the news again last night with a homeless camp at Thacker and Union
and that they don't have any water, but they do have a huge propane tank and traffic comes and goes; said
code enforcement won't do anything; that this is a motor home so she questioned how could one be
homeless if they are living in a motor home; and also questioned why the Health Department wasn't
involved since there is no water.
ADMINISTRATIVE REPORTS:
7. CRAVE, Farmers' Market Update—Tom Stebbins
Mr.Basinger said that staff has worked with JAKT to develop and create new events in the City of Spokane
Valley;and he introduced Mr.Tom Stebbins ofJAKT who will update Council on the Farmers Market and
CRAVE!. Mr. Stebbins talked about JAKT's vision to "create, celebrate, enrich and expand our sense of
community through events;" said they held fifteen markets on Fridays from June 7 to September 13; said
total attendance was 17,180, and $176,795 of sales were generated by over 100 local vendors; he spoke
about the community's reaction to the market, including what people liked and what needs to be fixed. Mr.
Regular Formal Council Meeting: 09-24-2019 Page 4 of 6
Approved by Council: 10-08-2019
Stebbins mentioned some of the impacts of Crave! as a premier food event of the region; and of their efforts
to collaborate and connect communities within Spokane Valley, such as the Spokane Valley partners,
Museum, and YMCA. Council thanked Mr. Stebbins for the update and for the events.
Mayor Higgins called for a recess at 7:52 p.m.;he reconvened the meeting at 8:01 p.m.
8. 2020 Preliminary Budget Presentation by City Manager—Mark Calhoun
As required by RCW 35A.33.050,City Manager Calhoun,via his PowerPoint,submitted the proposed 2020
preliminary budget; he noted that tonight marks the fourth occasion where Council will discuss the 2020
budget, and that until Council adoption, all figures are preliminary and subject to change by the City
Manager. Mr. Calhoun spoke of the City's priorities of(1) public safety, (2) pavement preservation, (3)
transportation and infrastructure, and(4)economic development; he went over the 2020 proposed Council
goals; the fiscal policies including financial management and financial objectives; mentioned we are
committed to long term financial sustainability; budget highlights included a breakdown of the city-wide
budget; said the budget reflects revenue growth of 5.9% over the 2019 amended budget, with recurring
expenditure growth of 3%over the 2019 amended budget and mention that we remain fiscally sound; said
staffing levels increase by 1.5 FTE (full-time equivalent) which is focused on strengthening our code
compliance efforts; mentioned that public safety comprises almost $27 million of the total budget; he
explained again the ending fund balance projection and that a 50%minimum is necessary to meet cash flow
needs; that we have a mechanism to move excesses in the fund balance to Capital Reserve Fund#312, and
that between 2013 and 2019, $27.8 million was moved and applied to various one-time capital projects.
Mr. Calhoun then moved to pavement preservation, transportation and infrastructure and the budget
allocations for the various capital projects and how those projects will be financed; he mentioned that the
budget appropriates over $8 million for a variety of street projects, and how those projects will be funded
from various sources. Mr. Calhoun also went over some of the challenges such as the declining telephone
utility revenues; balancing the cost of pavement preservation against other transportation and infrastructure
needs, and the railroad grade separation projects. He also discussed the street O&M fund, the pavement
preservation fund, real estate excise tax fund, also known as REET; and mentioned some of the aspects of
the Bridging the Valley projects,In closing,Mr. Calhoun stated that we have a balanced general fund budget
and overall the City remains in excellent financial condition with strong reserves and responsibly managed
operations and related costs.
8a. City Hall Update—John Hohman
Deputy City Manager Hohman introduced City Attorney Driskell, and Mr. Shane McFetridge of Paine
Hamblen Attorneys; he said they are here to give an update on the City Hall building, specifically the east
curved wall of Council Chambers. Mr. Hohman noted that there have been several meetings relating to the
design and approval of the City Hall contract, including the bid award to Meridian Construction May 3,
2016; he said the building was substantially completed early September 2017, and the City received a
certificate of occupancy September 5,2017;but that since moving into City Hall,staff noted various punch
list items to be completed or fixed by the construction contractor Meridian, which they did over several
months; and that staff also noted what appeared to be settling of the building along the curved east wall of
the Council Chambers; that after advising Meridian of the issues in 2018, staff continued to monitor the
issue through the assistance of several experts, to analyze the extent of the problem as well as potential
repair options. Mr. Hohman noted that the City filed a claim against Meridian Construction; and we have
contracted with a structural engineer who has determined that the Chambers are safe to occupy while this
issue is addressed. Mr. Hohman noted the expert analysis revealed that improper soil compaction and
improper foundation construction by Meridian and its subcontractor Piersol Construction are the reasons
for the settlement issues; and that the east Council Chambers wall is the only problem area.
Regular Formal Council Meeting: 09-24-2019 Page 5 of 6
Approved by Council: 10-08-2019
Mr. Hohman noted that stabilization work will start tomorrow with the hope of completing the work by
Thanksgiving, except the landscaping planting and bricks and motor which will probably be done next
spring. Mr. Hohman emphasized that Meridian is solely responsible for the financial repair and we expect
they will reimburse us for all work and investigation. City Manager Calhoun said that we are going to
spend the money upfront with the expectation of being fully reimbursed by the contractor; but we have to
appropriate the funds in order to spend them so this will be part of a future budget amendment.
Councilmember Wick asked about the approval process and City Attorney Driskell said the plan is to
operate within the City Manager's authority, but staff will come to Council if needed; he said this is an
emergency situation so we will not open the bid process.
9.Advance Agenda—Mayor Higgins
There were no suggested changes to the Advance Agenda.
10.Department Reports
These reports were for information only and were not reported or discussed.
CITY MANAGER COMMENTS
Mr. Calhoun showed a photo of some of the staff and Councilmembers who had participated in the
Valleyfest Bed Race.
It was moved by Deputy Mayor Haley, seconded and unanimously agreed to adjourn. The meeting
adjourned at 8:57 p.m.
//iii
ATTE L.R.Higg. . `�'�i • �".
•istine Bainbridge, rty Clerk -
Regular Formal Council Meeting: 09-24-2019 Page 6 of 6
Approved by Council: 10-08-2019
SPOKANE VALLEY CITY COUNCIL MEETING
Tuesday, September 24, 2019
6:00 p.m. Regular Meeting
GENERAL CITIZEN COMMENTS
SIGN-IN SHEET
YOUR SPEAKING TIME WILL GENERALLY BE LIMITED TO THREE MINUTES
This sign-in sheet is for making comments not associated with an action item on tonight's
agenda. If you wish to comment about an individual action item on tonight's agenda (such a
motion to approve an ordinance or resolution) when appropriate, the Mayor will ask r
co ments on those items once that item is reached on the agenda.
Please sign in if you wish to make public comments.
NAME TOPIC OF CONCERN YOU YOUR CITY OF RESIDENCE
PLEASE PRINT WILL SPEAK ABOUT
/ I
A:3W n+n ���� �' . �ucti r��S 5D Ci ckau Ua kcj v - •tt,,. )
'e C' }` l_ J C. l° .: c _L . � '� _ i .
Please note that once information is entered on this form, it becomes a public record subject to public disclosure.
Agenda Item 8a
CITY OF SPOKANE VALLEY
Request for Council Action
Meeting Date: September 24,2019 Department Director Approval:
Check all that apply: ❑ consent ❑ old business ❑ new business ❑public hearing
❑ information >q admin.report ❑ pending legislation ❑ executive session
AGENDA ITEM TITLE: Administrative report—City Hall update.
GOVERNING LEGISLATION:Not applicable.
PREVIOUS COUNCIL ACTION TAKEN: Multiple meetings relating to the design and approval of
the City Hall contract, including the bid award to Meridian Construction on May 3, 2016. The building
was substantially completed in early September, 2017, and the City received a certificate of occupancy on
September 5, 2017. March 19, 2019 update on the status of the east Council Chamber wall.
BACKGROUND: Since the City moved into City Hall in early September, 2017, staff noted various
punch list items to be completed or fixed by the construction contractor, Meridian, which they did over
several months. In addition to these punch list items, staff noted what appeared to be settling of the
building along the curved east wall of the Council Chambers. After advising Meridian of the issue in
2018, staff continued to monitor the issue through the assistance of several experts to analyze the extent
of the issue, including potential options for repair.
On February 21, 2019, the City filed a claim against Meridian Construction pursuant to the contract to
work toward resolution. Staff is providing this report to update the Council and public on the status of the
repairs. As stated in the previous report, the City contracted with a structural engineer who has
determined that the Chambers are safe to occupy while this issue is addressed.
OPTIONS: Not applicable.
RECOMMENDED ACTION OR MOTION: Not applicable, for information purposes only.
BUDGET/FINANCIAL IMPACTS: Unknown at this time.
STAFF CONTACT: John Hobrnan, Deputy City Manager
ATTACHMENTS: None.