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2009, 07-21 Study Session MinutesAttendance: Councilmembers Rich Munson, Mayor Dick Denenny, Deputy Mayor Rose Dempsey, Councilmember Bill Gothmann, Councilmember Gary Schimmels, Councilmember Diana Wilhite, Councilmember MINUTES STUDY SESSION MEETING SPOKANE VALLEY CITY COUNCIL Spokane Valley City Hall Spokane Valley, Washington July 21, 2009 Staff 6:00 p.m. Dave Mercier, City Manager Mike Jackson, Deputy City Manager Mike Connelly, City Attorney Ken Thompson, Finance Director Mike Stone, Parks & Recreation Director Kathy McClung, Community Development Dir. Neil Kersten, Public Works Director Carolbelle Branch, Public Information Officer Chris Bainbridge, City Clerk Mayor Munson opened the meeting at 6:00 p.m. and welcomed everyone to the study session. Mayor Munson explained that Deputy Mayor Denenny is not feeling well and therefore requests to move agenda item #4 to be addressed second, then continue as originally noted. There were no objections. ACTION ITEMS: 1. Motions for Interviews on July 28, 2009, Council Position #2 Vacancy — Mayor and Councilmembers Mayor Munson explained that Council members will make a nomination, that each nomination must be seconded, and that upon voting, if the nominee receives four or more votes, that person will be interviewed; and any nominee who receives less than four votes, will not be interviewed. Mayor Munson thanked all the candidates for their civic commitment, and reminded everyone that there will be at least one upcoming opening on the Planning Commission, and he encouraged the candidates to apply for that position and encouraged each candidate to register for the November race. Mayor Munson opened the floor for nominations. Fred Beaulac was nominated by Councilmember Gothmann and seconded by Deputy Mayor Denenny. Vote for Fred Beaulac: Mayor Munson, Deputy Mayor Denenny; and Councilmembers Schimmels, Gothmann and Dempsey. Opposed: Councilmember Wilhite. Mr. Beaulac will be interviewed. Ian Robertson was nominated by Mayor Munson and seconded by Councilmember Gothmann. Vote for Ian Robertson: Unanimous. Mr. Robertson will be interviewed. Ben Wick was nominated by Councilmember Wilhite and seconded by Councilmember Dempsey. Vote for Ben Wick: Unanimous. Mr. Wick will be interviewed. Richard Mayer was nominated by Deputy Mayor Denenny and seconded by Councilmember Wilhite. Vote for Richard Mayer: Councilmembers Gothmann and Wilhite, and Deputy Mayor Denenny. Mr. Mayer will not be interviewed. Stanley Courchaine was nominated by Councilmember Dempsey and seconded by Mayor Munson. Vote for Stanley Courchaine: Deputy Mayor Denenny; and Councilmembers Dempsey and Wilhite. Mr. Courchaine will not be interviewed. Council Meeting Minutes: 7 -21 -09 Page 1 of 6 Approved by Council: 08 -11 -09 Diana Sanderson was nominated by Deputy Mayor Denenny and seconded by Mayor Munson. Vote for Diana Sanderson: Unanimous. Ms. Sanderson will be interviewed. John Tyson was nominated by Councilmember Dempsey. There was no second so Mr. Tyson will not be interviewed. Dean Grafos was nominated by Councilmember Schimmels and seconded by Councilmember Wilhite. Vote for Mr. Grafos: Deputy Mayor Denenny; and Councilmembers Schimmels and Wilhite. Mr. Grafos will not be interviewed. After Mayor Munson called twice for additional nominations, no additional nominations were offered and it was moved by Deputy Mayor Denenny, seconded by Councilmember Gothmann and unanimously agreed to close the nominations. Mayor Munson asked City Clerk Bainbridge to read the list of nominations; and she read the names of Fred Beaulac, Ian Robertson, Ben Wick, and Diana Sanderson. Mayor Munson said the Clerk will notify these individuals to ask them to attend the meeting next week for the interview process. Mayor Munson again thanked everyone for submitting applications. Councilmember Gothmann asked if it would be acceptable to question the candidates about information from their resume and application, and Mayor Munson said that would be up to the individual councilmember, and that it would be fair to ask questions from the resume and /or application. 4. Motion Consideration: Wastewater Treatment Plant Interlocal Agreement — Mike Connelly Because Councilmembers were just given the most recent rendition of the interlocal, Mayor Munson asked if councilmembers would take a few moments to read the new interlocal. It was then moved by Deputy Mayor Denenny and seconded to authorize the City Manager or designee to execute the proposed Interlocal Agreement between Spokane County and the City of Spokane Valley regarding wastewater treatment. City Attorney Connelly explained that this agreement came about as a result of cautions and recommendations by the various individuals involved with the sale of bonds for the new wastewater treatment plant that indicated that without an agreement, the rates and interest to be charged for the facility could be higher; that financing agencies supplied us with specific estimates if this were not in place; once that became known to us and to the Board of County Commissioners, he worked to arrive at terms and negotiate an agreement which would be acceptable to staff and county, and said that agreement is here now for Council's review. Mr. Connelly explained that in the agreement the County agrees to provide wastewater collection, handling, treatment, disposal and to collect charges; and the City agrees it will not create a competing wastewater utility or competing system for the purpose of providing services as long as the County's bonds are outstanding; he said that if an existing user wants to expand, or a new user wants service and the County can't provide that service, we can use any means we desire to provide that. Further, Mr. Connelly said if the County can't provide treatment for any of our existing users, like a catastrophe or something else occurs to extend non - treatment for more than six months, that we can terminate the agreement and go wherever we choose. Mr. Connelly reminded everyone that it's still the county's system and pipes that we'd have to use so there would have to be subsequent agreements regarding those issues. Mr. Connelly said the Commissioners and the City agreed to set up a rate advisory board to make recommendations regarding budget and charges to charge the users, and when the new plant comes on line, the rates will be adjusted to pay off bonds and pay costs of operation. Mr. Connelly then explained some of the specific changes which occurred over the last week: page one, the last paragraph and the last "whereas" that originally after "facility" it said "as currently contemplated" and Mr. Connelly said those words were removed as it was not definable; on the top of page two a clause was added at our request to be clear that this is to serve a specific purpose and is not an overall agreement dealing with all aspects of the sewer system, but is an agreement to accomplish those three things: they supply, we agree not to compete; and the committee is formed. Further, he explained that page two Council Meeting Minutes: 7 -21 -09 Page 2 of 6 Approved by Council: 08 -11 -09 contained a definition of agreement that originally said pertaining to planning, construction, ownership etc, dealing with every issue, but noted it pertains solely to those matters contained herein. Page three discussed County bonds that were defined as the bonds that were going to be let in 2009 and any additional bonds that may be necessary with no specified term or cap on subsequent bonds; and he explained that we mirrored the language set forth in the bond resolution that they will be secured by this agreement. Mr. Connelly said the twenty -year bonds will likely go on sale in August and that the scope of the bonds is set forth in the bond resolution. There was discussion concerning the current bond market, that we don't know the exact cost yet and City Attorney Connelly said we might be looking at another interlocal, or some instrument to fill in the holes; that we didn't want this to be an all- encompassing document but to use this as a non - competing clause; that regarding the advisory board, Mr. Connelly said the initial concern was that there were more county appointments then the city so they made it a 50/50 board with two commissioners, two elected officials from Spokane Valley and the fifth person selected by the other four. Mr. Connelly said this advisory board will continue as long as the agreement is in effect, and the agreement is in effect as long as the bonds are outstanding and that we would have to have a new structure for some kind of rate advisory board, so we need to think what we would do if this agreement dies and what kind of board do we want. Attorney Connelly said page six, section 3.2 has the most recent changes where it formerly had language that in the event the County doesn't have capacity and fails to serve, and that was removed and it now states if the County fails to serve for any reason. Under section 2.5 section 3.2.d, Mr. Connelly said if the County tells us they can't serve and don't have any more capacity, then this agreement terminates; and that he and Mr. Emacio agreed that section 3.6 concerning formal mediation procedure was needed. Mr. Connelly said if this agreement is approved, it will be part of a rate setting procedure that starts tomorrow in San Francisco; adding that the Board of County Commissioners has already signed their agreement. Mayor Munson invited public comment; no comments were offered. Deputy Mayor Denenny asked Council to keep in mind that this agreement is trying to address a single issue: the bond of the facility and our relationship to that and our ability to have some kind of an out if the facility doesn't go on line; but that it doesn't try to answer all the questions. Mr. Connelly said he feels there are still significant questions not yet resolved. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion passed. Mayor Munson and Councilmembers excused Deputy Mayor Denenny from the remainder of the meeting. Mayor Munson called for a recess at 7:45 p.m. and reconvened the meeting at 7:55 p.m. 2. Second Reading Proposed Ordinance 09 -014 Amending Eminent Domain Ordinance, City of Spokane, Havana Bridge — Mike Connelly After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Wilhite and seconded to approve Ordinance 09 - 014, amending Ordinance 09 - 007. City Attorney Connelly explained that as discussed previously, Spokane City now wishes to use the entire Hite property; so the change from the initial ordinance is the new legal description of the property, which also references the amended interlocal agreement. Mayor Munson invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion passed. 3. Motion Consideration: First Amendment, Interlocal Agreement City of Spokane, Havana Bridge — Mike Connelly It was moved by Councilmember Wilhite and seconded to approve the First Amendment to Interlocal Agreement between the City of Spokane and the City of Spokane Valley regarding acquisition of property by eminent domain, and authorize the City Manager or designee to execute said document. City Attorney Connelly explained that this is a revision to the interlocal to reflect the change in the territory of the property; and said that we agree to deed that over to the City of Spokane; and after the exchange of the deed the entire right -of -way will all be under the jurisdiction of one entity, the City of Spokane, which Council Meeting Minutes: 7 -21 -09 Page 3 of 6 Approved by Council: 08 -11 -09 will also be responsible for the maintenance. Mayor Munson invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion passed. 5. Motion Consideration: Change Order for Pines /Sprague Intersection Project — Neil Kersten It was moved by Councilmember Wilhite and seconded to authorize the City Manager an additional $140, 000 in change order authority for the completion of the Pines /Sprague Intersection project. Public Works Director Kersten explained that the Pines /Sprague Intersection project was approved a few months ago at $634,428.25; that the City Manager has change order authority of $95,164; but they now have some additional overruns as during construction, it was discovered that construction debris including old toilets, broken pipes, and rotting railroad ties had been used as fill under the existing road. Mr. Kersten also mentioned there were some errors in some of the bid estimate quantities of about $42,000 as noted on the July 14, 2009 memorandum from Craig Aldworth. Mr. Kersten said the project is almost complete and a total of $393,069 is still anticipated to be left over from the STA grant after completion of all three intersections. Mayor Munson invited public comment. Dick Behm, 3626 S Ridgeview Drive: said that the County took over the old railroad and back in the 20's and 30's light rail ran from Spokane to Coeur d'Alene on that roadway so about every 100 to 200' there were huge concrete footings for the old electric line. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion passed. 6. Motion Consideration: Waste Management Lease Agreement — Neil Kersten It was moved by Councilmember Wilhite and seconded to authorize the City Manager or designee to negotiate and sign the lease with Waste Management in an amount of $53,865. Public Works Director Kersten asked that Council consider amending the motion to an amount not to exceed $57,888 as he is still negotiating with Waste Management, and the appraisal was based on 9% of the value and Waste Management would like to have it at 10 %; adding that staff will continue to negotiate. It was then moved by Councilmember Wilhite, seconded and unanimously agreed to amend the motion to raise the dollar amount not to exceed $57,888. Mr. Kersten said staff will continue to work at the original number in the appraisal, and will give Council an up -date on the status as the process proceeds. Councilmember Gothmann asked about insurance and Mr. Kersten said Deputy City Attorney Driskell is reviewing that language as well. Mr. Mercier stated that $2 million is the general amount; and Councilmember Gothmann said that section is somewhat awkward and Mr. Driskell agreed and said he will make a change. Mayor Munson invited public comment; no comments were offered. Councilmember Gothmann said this is a great achievement and demonstrates we are moving along and have a plan in place; and said this is the second of three steps to get the matter of winter snow removal moving; and Mr. Kersten added that we were fortunate to find such a facility which needs only minimal work to have it ready to go, and said that the location is also ideal. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion passed. 7. Motion Consideration: Purchase of WSDOT Surplus Trucks — Neil Kersten It was moved by Councilmember Wilhite and seconded to authorize the City Manager to purchase five WSDOT surplus trucks and sander units for a total amount of $92, 700. Public Works Director Kersten explained that this price actually went down a little from the original anticipated amount; that WSDOT has five units which is the minimum we need to do the job; that our staff inspected three units in detail and two more are coming in and when they arrive, staff will inspect them as well and proceed to purchase if the equipment is acceptable. Mr. Kersten said he is working on a change order with Poe Contractors who will maintain and assemble this equipment as when the equipment arrives, the plows and sanders will not be on so we'll need to haul them to a site where Poe staff will assemble the trucks and make sure they will be 100% ready for action. Mayor Munson invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion passed. Mayor Munson invited general public comments; no comments were offered. Council Meeting Minutes: 7 -21 -09 Page 4 of 6 Approved by Council: 08 -11 -09 REGULAR STUDY SESSION ITEMS: 8. Winter Road Maintenance — Neil Kersten Mr. Kersten said in keeping with providing Council an update about every two weeks, tonight in addition to the two prior agenda items, Mr. Kersten said that Poe Contract has agreed to supply the needed labor, they have given us a commitment and we are working to put together the numbers; that part of this segment of the winter road services includes an understanding of what needs to be done, and Mr. Kersten said he hopes to have that within the next two to three weeks; and Mr. Kersten then explained his 7 -14 -09 update of those items "in process" and of what remains to be done; adding that he anticipates having the Poe change order at the August 18 meeting. Mayor Munson said we need to develop an alternative plan in case we need the County's assistance; and said he asked them to contact us to start that negotiation for a backup plan; and Mayor Munson asked Mr. Kersten if he has heard from the County, and Mr. Kersten replied that he had not. Councilmember Gothmann remarked that after the last Health Board meeting, he discussed this topic with Commissioner Richard and told Mr. Richard we likely won't need their assistance, and Mr. Richard told Councilmember Gothmann and that they are there for us and willing to back us up. Mr. Kersten said staff will put out a notice for those who have road graders and will put out a bid; that he anticipates needing to set up some training, and develop a plan, so if we need them, they'll be on call and ready to go for us for backup. Regarding the site plan, Mr. Kersten said the area is very operational and requires very minor work, such as painting, and building a few pads to stockpile sand and materials. Mr. Kersten also said he doesn't have an estimate on cost yet for next winter, but to assemble the equipment, and the work on the site, and depending on the weather, he estimated in the area of $200,000; and said the cost could vary from $200,000 to a million dollars, that it is a large variation, but it depends on the harshness of the upcoming winter. Mayor Munson asked about any unanticipated stress to our budget, and Mr. Mercier said he does not anticipate any stress we can't withstand, and as we customarily do, we will likely offer a budget amendment later in the year. Mr. Kersten said we had about $400,000 for this year; and a reserve of $500,000; that we didn't spend a lot after the first of the year as the bulk of the expense was in December, and said he can research those numbers and said we will be close to having enough funds in the budget to get ready. 9. Draft Legislative Agenda/2010 Council Goals — Mayor Munson Concerning the draft legislative agenda, Councilmember Wilhite mentioned that she will be meeting with Senator Brown next week to discuss transportation issues and said if anything comes from that, she'll report such to Council. Mayor Munson stated that Senator Brown had promised she'll be looking to amend the Transportation Benefit District (TDB) legislation and use the white paper he recently submitted as a model. Mayor Munson also mentioned there could be higher state taxes forthcoming and said that 911 funding hasn't increased since the 1980's but the cost for providing 911 services increased about 7% annually; and said the state will be looking at a deficit in 2010 as a result of those increases in costs for equipment and personnel. The proposed street utility fee was mentioned and Mayor Munson said there was no provision last year for a vote, that Spokane Valley supported the provision and the bill will be co- sponsored or sponsored by the House Transportation Chair; and he said the biggest problem locally is the delegation voted against this on the principle of no new taxes; but said Spokane Valley supports the concept of a vote first. Regarding the City Hall City Center, Mr. Mercier said he is looking for the opportunity to make the project a demonstration project as to -date, there are no public buildings in the state that meet the "living building" standard, that the "living building" is a notch above all the LEEDS [ "Leadership in Energy and Environmental Design" (an internationally recognized green building certification system)] programs that provides an opportunity for sophisticated systems to allow a building to be a net zero building, that is, not consume any more utility then what is generated; and said we would still have to research how much it would cost to operate. Fractionalized billing was mentioned and Mr. Mercier said that Spokane County is in the process of acquiring software to allow it to distribute the cost for incarceration and booking and we are trying to determine the timeframe for the application; and said Council Meeting Minutes: 7 -21 -09 Page 5 of 6 Approved by Council: 08 -11 -09 A E� ristine this will likely impact all user communities which rely on jail services. Mayor Munson mentioned the upcoming ballot issue of the 1 /10 of 1% sales tax. Mayor Munson said the reverse 911 system is going to be more expensive then thought and will be contracted out per responses to Requests for a Proposal. Concerning the 2010 goals, Mayor Munson asked if Council has any questions or comments; and hearing none, Mr. Mercier said staff will incorporate those into the formulation of the 2010 budget which council will see within a few weeks. 10. Advance Agenda — Mayor Munson: Mayor Munson said that next week Council will conduct interviews with the four finalists chosen tonight, with questions limited to the applications, resumes, and those questions previously submitted; and said there will be a maximum of thirty minutes per interview, with a selection scheduled for August 4. Mayor Munson also mentioned the idea of a press conference on August 19 after the August 18 meeting which will include the winter road maintenance issue. Councilmember Gothmann reminded Councilmembers of the upcoming joint meeting with the Spokane City Council this Thursday. Mayor Munson and Councilmember Wilhite asked to be excused from that meeting as they attend an Association of Washington Cities meeting in Leavenworth. 11. Council External Committee Reports — Councilmembers Mr. Mercier reminded Councilmembers that this agenda item is not for those typical weekly meeting reports, but if any board is facing significant policy decisions, this is an opportunity to solicit input from fellow councilmembers. Councilmember Schimmels mentioned that the results of the audit with Solid Waste is now among the public; and the Solid Waste Advisory group will be meeting tomorrow, and the liaison board will meet August 3. Mayor Munson asked if either board would consider Mayor Verner's proposal, and Councilmember Schimmels said he is not aware of that, and said he doesn't know of any kind of agreement before the bonds are scheduled to be paid off; and he asked Public Works Director Kersten to comment on the technical committee group on the facility request. Mr. Kersten said that group just started and they are scheduled to meet August 3; that the technical group met in the morning and the liaison group in the afternoon to go through the first audit analysis, he said the addendum will not be included, and said he will get the groups' schedule. Mayor Munson said Council would like to talk about this as the interlocal is being developed instead of seeing it as a final draft; and Mr. Kersten said he has not seen any draft interlocal and does not know the timing as he is not part of the liaison board. Mr. Mercier said he has a meeting next week with Russ Menke and hopes to get more information then. 12. Council Check -in — Mayor Munson: Councilmember Gothmann asked in relation to the State Auditor and the charges on the Sheriff's Office contract, if we have received the wanted data. Mr. Mercier responded that through our legal department last week, he received a copy of the material from the auditor's office in response to our public record request; that the County received the same information and we forwarded the information to Financial Forensics and a conference call is scheduled with them for Friday morning; after which he said they will try to bring representatives of both offices to together. 13. City Manager Comments — Dave Mercier: N/A There being no further business, the meeting was adjourned at 8:0 ainbridge, City Clerk Council Meeting Minutes: 7 -21 -09 Approved by Council: 08 -11 -09 and M o ayor Page 6 of 6