2009, 05-19 Study Session Minutes MINUTES
STUDY SESSION MEETING
SPOKANE VALLEY CITY COUNCIL
Spokane Valley City Hall
Spokane Valley,Washington
May 19,2009 6:00 p.m.
Attendance:
Councilmembers Staff
Rich Munson, Mayor Dave Mercier, City Manager
Dick Denenny, Deputy Mayor Mike Connelly, City Attorney
Rose Dempsey, Councilmember Mike Stone,Parks&Recreation Director
Bill Gothmann, Councilmember Ken Thompson,Finance Director
Gary Schimmels, Councilmember Neil Kersten, Public Works Director
Steve Taylor, Councilmember Kathy McClung, Community Development Dir.
Diana Wilhite, Councilmember Scott Kuhta, Senior Planner
Greg McCormick, Planning Manager
Carolbelle Branch,Public Information Officer
Greg Bingaman,IT Specialist
Chris Bainbridge City Clerk
Mayor Munson opened the meeting at 6:00 p.m. and welcomed everyone to the study session.
ACTION ITEMS:
1. Sprague Avenue Resurfacing Phase I Bid Award—Neil Kersten
It was moved by Councilmember Wilhite and seconded to award the Sprague Avenue Resurfacing-
University to Evergreen Project contract to Inland Asphalt in the amount of$2,256,393.18. Public Works
Director Kersten explained that these items were hand-carried to Council tonight in an effort to have them
timely awarded; that four bids were received, the bids were tight and were under the original estimate;
that Spokane Rock Products was disqualified because they did not indicate meeting the 6% disadvantaged
businesses regulation; and Poe was disqualified because they were to have listed their electrical
contractor, but that item was left blank; leaving the next qualified bidder as Inland Asphalt. Mr. Kersten
mentioned that stimulus funds would be used for this project. Mayor Munson invited public comment; no
comments were offered. Vote by Acclamation:In favor: Unanimous. Opposed:None. Abstentions:None.
Motion carried.
2. McDonald and Evergreen PCCP Intersections Bid Award—Neil Kersten
It was moved by Councilmember Taylor and seconded to award the Sprague/Evergreen and McDonald
PCCP Intersections Project to Acme Concrete Paving in the amount of $1,219,000. Public Works
Director Kersten said there are the two remaining intersection projects from STA funds received last year;
that two bids were received with Acme as the lower bidder. Mr. Kersten said the bids came in about
$250,000 under the original estimate. Mayor Munson invited public comment; no comments were
offered. Vote by Acclamation:In favor: Unanimous. Opposed:None. Abstentions:None. Motion carried.
3. Splashdown Agreement—Mike Stone
It was moved by Councilmember Taylor and seconded to approve Splash-Down Concessions, Inc.
agreement and authorize the City Manager or designee to execute said agreement. Parks and Recreation
Director Stone said this agreement was discussed last week and there have been no changes. Mayor
Munson invited public comment; no comments were offered. Vote by Acclamation: In favor: Unanimous.
Opposed:None. Abstentions:None. Motion carried.
Council Meeting Minutes: 05-19-09 Page 1 of 4
Approved by Council: 06-09-09
4. Sullivan Park Dance Hall Lease—Mike Stone
It was moved by Councilmember Wilhite and seconded to approve the Western Dance Association
Sullivan Park Dance Hall Lease Agreement and authorize the City Manager or designee to execute said
contract. Parks and Recreation Director Stone mentioned this lease was discussed last week; there have
been no major changes to this ten-year agreement since the original agreement; and that the Dance
Association is a good partner to work with and reported the Association is pleased to use the facility; and
Parks and Recreation has use of the facility weekdays as well. Mayor Munson invited public comment.
Dick Behm, 3626 S Ridgeview Drive: said he was on the original Board of Directors of the Western
Dance Association and was president the first year they opened; he gave a brief history of the Association
and said their scrapbook is on display at the Dance Hall; and he thanked Council for renewing the lease.
Vote by Acclamation:In favor: Unanimous. Opposed:None. Abstentions:None. Motion carried.
REGULAR STUDY SESSION ITEMS;
5.Regional Affordable Housing Task Force Report—Mike Adolfae/Arlene Patton
Ms. Patton explained that tonight's purpose is to share the results of the final Regional Affordable
Housing Task Force report, which Task Force convened in April 2008 at the appointment of Mayor
Verner, Mayor Munson, and Commissioner Mager. Ms. Patton shared her PowerPoint slides which
explained the work items of the task force, guiding principles, and the data used to track proposed
prototype households; she explained that the task force explored the creation of new local housing
resources and other funding options; mentioned their method to establish regional affordable housing
goals and implementation strategy including establishing a public education program. She also shared
data from the 2008 Income Limits Summary, and explained that the current area median income is
$60,200, and that the population of their focus was on those with an annual salary of$60,200 or less; she
said the very low income would be a single person making less than $12,650 annually to qualify. Ms.
Patton said Spokane City and County are looking for a collaborative uniform application for those who
want to use federal home funds; and she asked if Spokane Valley's City Manager would agree to
participate by assigning staff to this effort. Mr. Adolfae mentioned they would welcome members of
Council and staff as well to participate in the implementation side. Council thanked Mr. Adolfae and Ms.
Patton for the presentation and Mayor Munson stated that it is their practice to consult with staff prior to
making decisions concerning them; and there was Council consensus that Council supports what the task
force has done, and said staff will research this issue and let Council know if they have time and funds to
participate. Mr. Adolfae said they would share data with Council as they go through the implementation
process.
6. Sprague and Appleway Corridors Subarea Plan—Scott Kuhta
Mayor Munson said that each councilmember is committed to do what is right, and for him doing what is right
is the most difficult as it would be easy to go along with the most vocal components in the community; he said
it is difficult to determine if those vocal people represent the majority of the community; that some of the
people who have voiced their opinion in support of the plan represent a large number of businesses; and about
27 to 30 people have voiced their dissent; and that he strives to look at comments objectively without allowing
rhetoric disbursed over time to influence his decision. Councilmember Gothmann said the easiest thing is to
nothing; and he acknowledged that many people have had good ideas and he appreciates their help on this
project. Councilmember Taylor added that we have a situation of a dying corridor with a lot of dis-investment,
which will continue if Council doesn't try to provide a framework for that area to grow again and thrive; and
said he feels it is Council's paramount duty to see to the revitalization of the business corridor, and he thanked
staff and the public for putting so much time and effort into this plan. As well, Councilmember Wilhite
acknowledged the tremendous amount of work and the numerous revisions, and said she appreciates citizens
who came to talk about their concerns and how Council's decisions impact them; that Council needs to know
these things and said it is good to have that dialogue with the community.
Senior Planner Kuhta explained that this Plan is a result of over three year's work,the final public hearing was
held April 28 and final written testimony was received until 5:00 p.m. Friday, May 1; and tonight's purpose is
Council Meeting Minutes: 05-19-09 Page 2 of 4
Approved by Council: 06-09-09
to address any remaining or unresolved issues. After Council and staff discussion, and Council deliberation on
such issues as signage standards, the one-way/two-way issues and relative public comments, corporate
businesses including those in AutoRow, and businesses conforming to standards, and after breaking briefly
from 7:20 p.m.to 7:30 p.m., Council made the following determinations:
1. Reference letter from Sean Lumsden about expanding the gateway commercial area, there was Council
consensus(five in favor,two opposed)to grant the change to incorporate the gray area.
2. Allow Cottage Restaurant area to be commercial; and increase the dark blue area for an additional four
blocks:Thierman to Coleman, south side of Appleway.
3. Staff will some back with suggestions for a different term for the"residential boulevard" designation as that
term is misleading.
4. Increase the non-conforming period from one year to two.
5. Keep the 100%build-out,realizing Council can make changes later if needed.
6. By council Consensus(six in favor, one opposed)to remove the Lark Property from the Plan.
7.Winter Snow Removal—Neil Kersten
Public Works Director Kersten explained that the County will not be assisting is un preparing an RFP
(request for proposal)and therefore,we have selected HDR Engineering,Inc. from our Consultant Roster.
Mr. Kersten said staff has the draft Letter of Interest (LOI) and HDR wants to review that prior to staff
advertising that later in May. Mr. Kersten also reported that the time required for this selection process
will not allow for a long-term contractor for this winter, but this process could provide winter services for
2010/2011. As an option,Mr. Kersten explained,there is a possibility we could obtain surplus equipment
from Washington State Department of Transportation (WSDOT); and said staff and WSDOT are
exploring that possibility; other equipment would also be needed, and Mr. Kersten said it is possible such
could be rented. Mr. Kersten said other research included discussions with Waste Management regarding
a site across from City Hall which has a three-bay maintenance building, fueling facility and small office
which could be operational by this winter with minor upgrades. For manpower, Mr. Kersten said based
on our current contract with Poe, there is a possibility to bring on that crew and operate next winter, and
Poe has indicated their interest in such a possibility. Mr. Mercier added that it is difficult to calculate the
cost of acquisition of used equipment such as sanders and de-icing units, nor do we know the cost
associated with housing those items; and said even if we can compose a plan for this winter, it might not
have the staying power given the long-term rationale plan, forcing us into composing a shorter term plan
which might not make the long-term plan appear as handsomely. Mr. Kersten added that we still need
confirmation from WSDOT concerning their surplus equipment, and if we can get those, we can move
ahead with Poe, and try to have this determined by mid-June; and said the major component is time to
acquire the equipment, facility, land, and personnel. There was council consensus to move forward with
the short-term plan.
It was moved by Councilmember Dempsey, seconded and unanimously agreed to extend the meeting to
9:30 p.m.
Council Meeting Minutes: 05-19-09 Page 3 of 4
Approved by Council: 06-09-09
8.American Recovery and Reinvestment Act Strengthening Communities Fund—Kathy McClung
Community Development Director McClung explained that staff just became aware of additional
Recovery Act funds that might be available to non-profit agencies, and after further research, she
determined that cities cannot apply for these funds as the State must apply for the money,then community
groups would be designated to receive the funding; and she said our representative would be the SNAP
organization; and the State is aware of this opportunity and they will be applying.
9.Advance Agenda—Mayor Munson
Mayor Munson said he had no further changes to the advance agenda, and reminded Council and staff
about the 5:00 p.m. June 2 executive session to discuss labor relations.
10 Information Only: Permitting Activity Report, Cable Franchise Update, and NE Wa Housing
Solutions Appointment were for information purposes only and were not discussed or reported.
11. Council External Committee Reports—Councilmembers
Concerning transportation issues, Councilmember Wilhite explained that they are still waiting to see how
it all pans out for funding; that the $50 million in stimulus funds for this area will be the topic of
discussion at Representative McMorris-Rodgers office next week. Concerning the STA, Deputy Mayor
Denenny mentioned the citizen's advisory committee background on the proposed fare increase with
paratransit fares of major interest; he said those rates are very low and the intent was to bring them up to
the regular adult fixed fare route; adding there is no relationship between the actual cost and the charge to
the consumer, that the overall fare goal is to aim for recovering about 20% of the actual expenses, but
with paratransit, they would be fortunate to get 5%; and he explained the newer slightly lower proposed
rates for upcoming years, and said the increase in paratransit has been delayed until this group has
completed its research. Concerning this Council taking a stance on the issue, Councilmember Gothmann
suggested Council give no instruction; as he feels Mayor Munson and Deputy Mayor Denenny will make
the appropriate decisions as both have had good arguments before the board in the past. There was also
brief mention of the upcoming June 16 meeting in Spokane Valley concerning the Transportation
Commission,with the possibility of Councilmember Wilhite attending.
12. Council Check-in—Mayor Munson
Mayor Munson mentioned his participation in the recent Lilac Parade, as well as attending emergency
management training.
13. City Manager Comments—Dave Mercier
Mr. Mercier mentioned the various reports and studies from CTED resources group, and that this might
be a way to conduct some research concerning alternative court analysis; and said this will be discussed
further in early June.
There being no further business,the meeting adjourned at 9:28 p.m.
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ATTEST: Richard Munson,Mays
....., ,C ristine Bainbridge, City Clerk f
Council Meeting Minutes: 05-19-09 Page 4 of 4
Approved by Council: 06-09-09
Excerpts from (1) "Sprague/Appleway Economic Analysis" and (2) "Evaluation of Market
Opportunities and Constraints, both by ECONorthwest. –Bill Gothmann, 5-19-09
Challenges:
The Corridor is relatively healthy, on average, at both ends. It is deteriorating in the middle. At
both ends,however,there are some businesses not doing well; some of them may not survive. In
the absence of new city policies or investments,we would expect that pattern to continue. (1)
pg. i,pg. 5-6
One notable difference between the Couplet Study area and the East Sprague Corridor is that the
East Corridor has more housing. (1)4-9
... the corridor is saturated with commercial space. In short, the corridor has so much
commercial space,there,may not be much demand for more space. Moreover, any new space
will compete with existing space—both within the corridor and within the region. (1)4-9
The vacancy rate for retail and commercial property in Spokane Valley is much higher than most
areas in the City of Spokane. (1) 4-9
The vacancy rate for office space in Spokane Valley is slightly lower than the retail vacancy rate.
(1) 4-10
Lease rates for retail space in Spokane Valley average about$12 per square foot.39Lease rates for
retail and commercial space on Sprague Avenue are sometimes much lower,ranging from $3 to -
$12 per square foot.4o Lease rates along Sullivan are higher, around$12 to $15 per foot, while
retail space in the vicinity of the Spokane Valley Mall goes for between$12 and$15 per foot for
big-box retail, and around $20 per foot for smaller retail establishments..Lease rates for retail
and commercial property in other areas of the region range from$12 per square foot to $19 per
square foot. (1) 4-16
The average rent for properties on the couplet was $5.80 compared to $7.70 off the couplet. (1)
4-16
If Spokane Valley's population and employment opportunities increase, demand for housing and
businesses in the Corridor area are likely to increase as well. (2)pg 6
... housing grew faster than population in Spokane Valley and Spokane, indicating that the
average number of people per household is decreasing in these areas, which is consistent with
national trends. (2)pg 8
... Spokane Valley's Sprague-Appleway Corridor will have trouble growing as a major shopping
destination. (2)pg 13
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... the Valley subarea currently has 40% of total retail space in suburban Spokane but 66%of the
vacant retail space. ... in the Corridor off-street spaces are especially difficult to lease. (2)pg
16
... retail space in the Valley subarea rents for between$0.50 and$3.00 less than space in other
areas of suburban Spokane. ... office space rents for between$0.75 and$2.00 less in the Valley
than it does in other areas of suburban Spokane. (2)pg 16
Estimated demand for commercial space on the Corridor will average about 40,000 square feet
per year for the next 20 years: demand for retail space will make up about 21,000 square feet
annually, and demand for office space will make up about 19,000 square feet annually. (2)pg 26
Additional trends for Spokane County,particularly Spokane Valley:
Residential construction continues to increase in Spokane County.
Multifamily residential construction outpaces single-family construction.
Prices for single-family homes in Spokane are increasing.
Apartments vacancy rates in Spokane County are declining. (2)pg 30
Realtors noted that the land values for primary parcels(those directly on busy streets or at
signaled intersections) are between$8 and $25 per square foot(for both vacant and occupied
sites). When looking at the Corridor as a whole,the lower bound of parcel values dropped to $6
per square foot. The range of prices per square foot on the Corridor is low relative to the price of
commercial property elsewhere in Spokane Valley. The price range for single family residential
lots ranges from$5 to $7 dollars per square foot. Thus, lower price commercial land and
buildings has the same approximate value as residential land. (2)pg 31
The other significant housing opportunity in the Corridor is along the now vacant Appleway
right-of-way. If this right-of-way were developed as a boulevard(trees, open space,pedestrian
amenity, traffic calming) it would create opportunities for controlled, large-scale development
that is now only possible at the urban fringe. (2)pg. 32
Solutions:
Reduce retail entitlements on the Corridor; create a place where other uses can have value. (1)
pg. ii
AN ACTION PROGRAM (1)pg iii
1. Reduce the amount of land intended for commercial development along the Corridor.
2. Consider reduction of land intended for new retail development outside the corridor
3. Go with the marketplace: provide retail concentrations at major crossroads in compact,
walkable,"lifestyle center"/town center type configurations.
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4. Plan corridor restructuring in relation to the envisioned pattern of retail in the City and
region.
5. Plan neighborhood-serving retail and services in limited clusters at strategic locations
6. Promote the continued success of specialty segments, e.g. auto sales and services.
7. Work toward a"Catalyst Project."
8. Modify land use and development policies to focus high-quality residential,workplace,
and lodging investment along the majority of properties fronting the Boulevard.
The Sprague Corridor cannot, and should not be expected to, serve a regional or super-regional
role in the retail hierarchy. (1)4-21
REDUCE RETAIL ENTITLEMENTS ON THE CORRIDOR; CREATE A PLACE
WHERE OTHER USES CAN HAVE VALUE (1) 5-10
•Reinforce anchors west and east in the Sprague Corridor.
• Redevelop the middle of the corridor. This is the area of greatest weakness in the •
Corridor.
• Establish a City Center.
Other:
The cost to build Appleway and convert Sprague into a one-way couplet was $17.5 million. (1)
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