Loading...
2020, 06-02 Study Session MINUTES City of Spokane Valley City Council Regular Meeting Study Session Format Tuesday, June 2, 2020 Mayor Wick called the meeting to order at 6 pm. The meeting was held in City Hall with Council and staff participating via ZOOM. Ben Wick, Mayor John Hohman, Deputy City Manager Brandi Peetz,Deputy Mayor Chelsie Taylor, Finance Director Pam Haley, Councilmember Cary Driskell, City Attorney Tim Hattenburg, Councilmember Mike Stone, Parks&Ree Director Rod Higgins, Councilmember Mike Basinger, Economic Dev. Manager Linda Thompson, Councilmember Jenny Nickerson, Building Official Arne Woodard, Councilmember Christine Bainbridge, City Clerk ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. APPROVAL OF AGENDA: It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the agenda. Prior to moving forward with the agenda items,Mayor Wick asked for a moment of silence to acknowledge the troubled times of our nation and in memory of George Floyd. 1. COVID-19 Phase 2 Restaurant Operations—Jenny Nickerson,Mike Basinger Building Official Nickerson went through the PowerPoint discussing restaurant re-openings during Phase 2 of the COVID-19 pandemic; she mentioned obstacles such as reduced occupancy and inconsistent opening hours; she also explained some of the parking options and flexibility in such things as required number of off-street parking spaces; mentioned flexibility for restaurant to retail change of use; sign regulations and flexibility with temporary/event signs; and she noted that the Permit Center continues accepting applications,and reviewing requests,permits,and inspection requests throughout the COVID-19 pandemic through the use of our permit portal; she noted the temporary sign fee is a low cost of$50 which covers administrative duties and processing, as well as inspector or code enforcement to make sure those signs are not up for more than 60 days;and she noted that we continue to waive the credit card convenience charge. Concerning economic development, Mr. Basinger explained about the City's newly developed webpages dedicated to COVID-related updates, including links to such agencies as the Spokane Regional Health District, and the Washington State Department of Health; he stated that this page logged over 5,500 site visits in its first five weeks; he noted information has also been disseminated through such social media sites as Facebook, Twitter, Linkedln and Instagram, and that of course the City issues periodic press releases. Mr. Basinger noted staff instituted a digital marketing campaign promoting local restaurants featuring the hashtag#orderupspokanevalley, and that has received over 300 likes, 100 shares,and resulted in 3,515 visits to the restaurant page March 22 through April 8,Lastly, Mr.Basinger went over some of the other things the Economic Development Division has been doing to provide citizens and businesses with information on significant dates involving COVID-19, as well as sending e-mails related to our enhanced online permit portal. 2. COVID-19 Revenue Estimates Update—Chelsie Taylor Finance Director Taylor went through the details of her Request for Council Action form, stating the need to revise revenue estimates downward due to COVID-19; she said it is still too early for exact figures, but Council Meeting Minutes: 06-02-2020 Page 1 of 5 Approved by Council:06-23-2020 stressed we must realize the financial climate will have an impact on revenues and taxes. She explained that based on recommendations from various financial groups including the Government Finance Officers Association and Municipal Research Services Center, as well as various public accounting firms, staff began to evaluate revenues based on shortfalls that were experienced by the City during the great Recession of 2008 to 2010. She noted that sales taxes revenues which are accounted for in the general fund,decreased by about 18% from 2007 to 2010; and based on these figures, her conservative estimate for a decrease in sales tax revenue collections for 2020 is about$6 million less than what is currently included in the 2020 budget. Director Taylor mentioned that fees collected by the Community and Public Works Department for such things as permits and plan review fees decreased by about 40% from 2007 to 2010, and a 40% reduction in estimated fee revenues for 2020 is about $220,000 less than what is currently included in the 2020 budget. Director Taylor explained similar scenarios for Parks and Recreation Revenues, Gambling Taxes, Motor Vehicle Fuel Taxes and Multimodal Transportation Funds, Lodging Taxes, and Real Estate Excise Taxes (REET), and stated that these reductions are estimated to come in at about$8.4 million less than what is currently included in the 2020 budget. Director Taylor further explained that these figures are very preliminary; said she received activity figures for April tax revenues from the state and comparing this April to April 2019, those revenues are about 16.7% lower; fuel revenues are down over 37%, and that lodging is down almost 58%, and said that some filing deadlines have been extended by the Department of Revenue. Ms. Taylor also noted that none of the CARES funding of$2.9 million from the Department of Commerce would qualify to be used for these funds as those CARES funds must be strictly related to COVID; she added more information on that will be forthcoming in the following weeks. Property taxes were also mentioned and Director Taylor said we have received over $5 million of the expected $6 million; she also noted she tried to err on the lower end and she will continue to monitor this information and by the August 4 workshop,will have more information and be able to give a better estimate after we see how the economy is starting to move. 3. Governance Manual Revisions—Chris Bainbridge, Cary Driskell After City Clerk Bainbridge and City Attorney Driskell briefly went over the proposed changes, discussion included public comment and whether to have one opportunity, or two opportunities, and where to place such opportunities on the agenda; it was determined to keep the two comment periods and have one closer to the beginning of the agenda, and the second one would remain making it easier to ask for comments and not receive any,then to not have an opportunity to ask. The 45-minute time period was also discussed, but there were no suggestions to change that as the section also notes changing the time would be up to the Mayor. It was determined to place the first public comment section immediately after the Consent Agenda. There was also discussion about Council Committee/Board reports. Mayor Wick said he would like to encourage more of a discussion rather than a one-way report but nothing definitive was decided as that could be done on a case-by-case basis. Travel was brought up with the idea that if a Councilmember were on a trip for a meeting, and wanted to take a side vacation/tourist trip, that the side trip should not be permitted as part of the travel allowance reimbursement. Mr. Driskell explained that such a side excursion must be city-related to be reimbursed,and City Manager Calhoun added that the finance department reviews each expense report and if there were ever questions, they would seek clarity as the reimbursement must pass muster with the auditors, which he said is generally the case. Moving to the section concerning remote meetings and meeting participation by telephone conference, Mayor Wick asked about the idea of a type of hybrid meeting, which would not necessarily be a remote meeting, but allow the one or two councilmembers who couldn't attend physically, to be seen and heard. Mr. Calhoun said staff will work with IT to research options. Mr. Driskell also mentioned the statement of core beliefs, which is currently included in the Manual as Appendix B; and it was determined that revising that resolution would not be part of the Governance Manual but could be brought up later for a separate discussion. Council Meeting Minutes:06-02-2020 Page 2 of 5 Approved by Council:06-23-2020 4. Community Development Block Grant Interlocal Agreement—John Hohman, Mike Basinger Mr. Basinger explained that the objective of the CDBG is development of viable urban communities, principally for low and moderate income persons; that it is administered through the U.S. Department of Housing and Urban Development(HUB);he noted the CDBG project types and mentioned the Barker Road Sewer Project,which is a collaborative project managed by Spokane County to eliminate septic tanks using the City's set-aside for sewer hookup assistance;he mentioned funding limits;and went over the highlights of the revised cooperation agreement, which Council had asked him to negotiate, and which Spokane County agreed to; adding that once our population reaches 100,000, our representation will be increased from three to four. Mr. Basinger also noted regarding the HOME Investment Partnership Program, that HUD uses a formula to determine which jurisdictions are eligible and our City is not. Mr. Basinger again noted the options before Council as shown on slide 15, and that staff recommends Council defer status as an entitlement grantee and participate as a part of the urban county, which we have done since 2003. There was extensive discussion including comment about how the auditor's office document recording fees are used,with Mr. Basinger explaining that if we chose the status quo,we would not get those fees as if we did,it would dilute the County's program which we would not want to do since the region,our city included, is served with those funds. Mayor Wick stated that his concern is local control;that we want to make sure that Spokane Valley is a participant on those funding decisions,and he asked how can we get more involved. Mr. Basinger said that the Council had asked him to work with the County to improve our arrangements, and after conversations with Spokane County Housing and Community Development Division Manager Tim Crowley,we will be able to provide recommendations for any project within our City boundaries; said the County has also given us an increase from the 20%set-aside funds to 39%which represents a substantial increase and allows us to distribute those funds as Council see fit; he said the County has been very accommodating. Deputy Mayor Peetz also raised the goal of local control and how that equates with the estimated document recording fees of$500,000.City Manager Calhoun said if we were our own entitlement City,that 20%would go toward administration leaving a net$520,000 for the program; but we would have to hire at least two employees at about$200,000 each,which includes benefits;adding that the salary would be dependent upon the skill set as we would be looking for someone with experience managing a program, so the salary for each would be about$225,000 or$250,000; which he said would be a policy decision on the part of Council. Mr. Calhoun said if Council wants us to hire these two individuals, a great amount of work would be required between now and the August 4 budget workshop for the 2021 budget year; said that he will deliver a 2021 budget with no less than 50% fund balance of recurring revenues, which is necessary for cash flow purposes; and if we move in this direction, he will show which programs would be cut. Mr. Calhoun said the question is,what does Council want to see as we do budget development and as we discuss whether we move to becoming an entitlement city. Councilmember Higgins mentioned that he hears that we don't have any input into the process, but stated that now we would as Mr.Basinger was successful in accomplishing what we sent him to ask of the County; that we got everything we asked for; that this process would be dealing with federal money and federal agencies, and if we move to our own entitlement city, he is afraid we will be looking at some budget shortfalls, versus staying where we are now; said that 20% set aside won't even begin to cover our actual costs if we do this program ourselves; said he feels moving to become an entitlement city would be a bad decision, at least now. Deputy Mayor Peetz asked about the scenario if we went on our own and that didn't pan out, could we go back with the County administering the program. Mr. Basinger explained that when we move away from the program, it will have an effect on the County's program and their staffing and the history that comes with that and what it takes to be a specialist with the CDBG is very specialized; said they may lose those individuals and it may be complicated to go back; adding that he would have to ask the County about that scenario. Deputy City Manager Hohman explained that if we break away, it will have an impact on County staffing levels and they won't be able to maintain the same level;he said the option is to agree to this contract and work through year 2022 and 23 and then the three-year period will be up and we can consider if this was successful or if we need to take full control of the program; he added that staff will always make sure to Council Meeting Minutes:06-02-2020 Page 3 of 5 Approved by Council:06-23-2020 investigate the pros and cons to allow Council to be informed on how things are working. Councilmember Woodard stated that we look at this every three years, and he asked why do this in the middle of a pandemic when we have no idea of what funds would be; said we are a contract city; if we went on our own, we'd see less money with more people trying to get the funds for the projects we have historically used for infrastructure; and added that it wouldn't make sense to change in this climate, and that Mr. Basinger got the changes we asked for. Councilmember Woodard stated that we have to make it through this year and we are not sure how that will look; we need to determine how much recording documents funds are for homeless issues;said he hopes we won't have to cut any services and wonders how much deeper we would go to add two or three employees; said we'd have to make another whole department called housing; and again stated that he thinks we are trying to do too much when there isn't justification for changing what is working now. Councilmember Thompson added that Council asked Mr. Basinger to get the information and he did; said she thinks having local control is an issue and she supports becoming our own entity; said there will be some economic strife and if programs are cut, other staff can pitch in. Mayor Wick asked how many contracts were awarded for 2019 and for how much, and Mr. Basinger said he would have to look back; adding that we have always done well through this process as has many of our partners. Councilmember Haley stated that we have always done what is best for our city,that having dealt with some federal funding and watching STA(Spokane Transit Authority)and what they go through,that it doesn't make sense as we don't even know about the funding; said the state is talking about 25% cuts; said she thinks we are underestimating what will happen, and that this change should not occur now. Deputy Mayor Peetz asked about a deadline to get a decision back to the County. Mr. Basinger said the County would like the agreement back by June 22; said they have been very accommodating and are expecting it to come back so they can start to plan for their program. Councilmember Hattenburg said he realizes these are tough economic times, but the issue of local control keeps coming up; said Council needs to look at those opportunities whether now or in the future and evaluate as we go; said this is a serious issue, and he asked what it would cost us and said he would like to look at that at some point. Mayor Wick questioned why we would need two new staff members to manage two or three contracts. Deputy City Manager Hohman said it would be a minimum of two staff; and it is not just managing the particular contracts, but rather the entire program; that we would have to have a consolidated plan put together and updated; it would involve contacting applicants and staying involved; it would also need a specific type of finance person fluent with federal requirements so there would be no problems with auditing; said regarding the idea of drawing on City's administrative support staff as well, that maybe we could use some of the administrative assistant staff but that would be in addition to the other staff; said he feels strongly we don't have the capability to handle this program without adding new staff. Mr. Hohman said staff would like to know what direction most of the Council would like to go so we can prepare appropriately;to either stay with the interlocal and come back for a motion, or prepare a letter and withdraw from the consortium. Councilmember Thompson asked about putting this decision off for one week so staff can determine the cost for the employees. Mr. Hohman said staff will work toward bringing back the interlocal for a motion and include in the report, the cost for adding two employees; said he will work with the City Attorney to look at the last signed interlocal concerning the Barker Home Sewer to see if it addresses our contribution;and then report back and Council can then decide.In summary,Mr.Hohman said staff will bring back the interlocal for a motion at next week's meeting,or Council can offer the County a withdraw letter. There were no objections from Council to proceed as Mr. Hohman suggested. 5.Advance Agenda—Mayor Wick Although there were no suggested changes to the Advance Agenda, Mayor Wick asked Council if there were any objections to restoring the Council Committee reports and Proclamations to the regular formal agenda, and there were no objections. 6. Finance Monthly Report—Chelsie Taylor This report was for information only and was not reported or discussed. Council Meeting Minutes:06-02-2020 Page 4 of 5 Approved by Council:06-23-2020 7. Council Check-in—Mayor Wick There were no comments from Council. 8. City Manager Comments—John Hohman Mr. Hohman said that Councilmembers will have received in their e-mail, a copy of a letter he sent to the FCC; said we were notified late last week that they are working on voting for changing some rules on how wireless facilities are sited and said that would water down our local control and supersede some of our process; said he sent an objection letter to the FCC; said unfortunately there wasn't time to bring it to Council beforehand, but felt it is in line with other items in our state legislative agenda concerning maintaining local control. Regarding the Barker Home Sewer Project,Mr. Hohman stated that we will still look into the financial contribution part,but he wanted to update Council on the actual construction contract; said we entered into that agreement in November 2019;that the County advertised and received two bids; one of which was below the engineer's estimate; said we originally anticipated that our share would be just under$1.8 million but it looks like it will now be just over$1.5 million, resulting in a cost savings of about $276,000; he said the County is moving forward on that so the project will be underway soon. Mayor Wick mentioned he is trying to schedule some upcoming meetings with legislators from the Third and Fourth District; said he would like to keep it under a quorum, and asked if any Councilmembers were interested to please let him know as soon as possible. 9.Executive Session: Potential Land Acquisition; Pending Litigation • It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to adjourn into executive session for approximately 30 minutes to discuss potential land acquisition and pending litigation, and that no action will be taken upon return to open session. Council adjourned into executive session at 8:15 p.m. At 8:49 p.m.Mayor Wick declared Council out of executive session,at which time it was moved by Deputy Mayor Peetz, seconded and unanimously agreed to adjourn. ATT S i L.! Ben Wick,Mayor Christine Bainbridge,/City Clerk Council Meeting Minutes:06-02-2020 Page 5 of 5 Approved by Council:06-23-2020