2021, 10-05 Study Session MINUTES
City of Spokane Valley
City Council Study Session Meeting
Tuesday, October 5, 2021
Mayor Wick called the meeting to order at 6:00 p.m. The meeting was held in person in Council Chambers,
and also remotely via Zoom meeting.
Attendance:
Councilmembers Staff
Ben Wick,Mayor Mark Calhoun, City Manager
Brandi Peetz,Deputy Mayor John Hohman,Deputy City Manager
Tim Hattenburg Councilmember Cary Driskell, City Attorney
Rod Higgins, Councilmember Erik Lamb,Deputy City Attorney
Linda Thompson, Councilmember Chelsie Taylor, Finance Director
John Bottelli, Parks,Rec &Facilities Director
Absent: Jenny Nickerson, Building Official
Pam Haley, Councilmember John Whitehead,Human Resources Manager
Arne Woodard, Councilmember Christine Bainbridge, City Clerk
ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present except
Councilmembers Haley and Woodard. It was moved by Councilmember Higgins, seconded and
unanimously agreed to excuse Councilmembers Haley and Woodard from tonight's meeting.
APPROVAL OF AGENDA: It was moved by Councilmember Higgins to amend the agenda, in light of
two absent Cotmcihnembers, to defer#6 to next week. There was no second and the motion did not progress.
It was moved by Deputy Mayor Peetz and seconded to approve the agenda. Vote by acclamation:in favor:
Mayor Wick, Deputy Mayor Peetz, and Councilmembers Thompson and Hattenburg. Opposed.'
Councilmember Higgins. Motion carried.
ACTION ITEM:
1. Mayoral Appointment,Lodging Tax Advisory Committee—Mayor Wick
It was moved by Deputy Mayor Peetz and seconded to confirm the Mayoral appointment to the Lodging
Tax Advisory Committee, of Amanda Alcamo, representing a member authorized to collect the tax, with a
term beginning immediately upon appointment and expiring December 31, 2021. Mayor Wick said that
there were two applicants and both were great candidates, and this will be the first time we have had a
representative from Oxford Suites. There were no public comments. Vote by acclamation: in favor:
unanimous. Opposed: none. Motion carried.
NON-ACTION ITEMS:
2. STA's (Spokane Transit Authority) Sprague Line High Performance Transit—Karl Otterstrom
Via Zoom,STA Director of Planning and Development Mr.Otterstrom,spoke about STA's thirty-year plan
to achieve all-day, two-way reliable and frequent service; explained about how the Sprague High
Performance Transit(HPT) line currently operates as STA Route 90; he went over their project goals and
benefits; mentioned other project opportunities; gave a brief timeline of the work done to-date from 2017;
mentioned some previous improvements; talked about their current project budget; their public outreach;
proposed bus stop revisions and improvements including twelve HPT stations; and noted their project
schedule with phase 1 construction starting in 2023 with a projected completion date of 2024.
3. Tourism Promotion Area(TPA)Update—Cary Driskell
City Attorney Driskell gave some background on the City's participation in the TPA Interlocal, and some
of the changes that have occurred to the interlocal over the past years; he mentioned the termination option
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Approved by Council: 10-26-2021
provision contained in the interlocal and of options for tonight; said he and Mayor Wick spoke with some
of the hoteliers within our City and that nearly all those contacted would either be supportive or potentially
interested in our City creating its own TPA. Mr. Driskell further explained that if Council is interested in
creating its own TPA, there are several necessary steps to take, the first of which would be to pass a
resolution terminating our participation in the existing County TPA;and that Council always has the option
of not taking any further action and keeping things as they are currently. Mayor Wick added that in their
discussions with the hoteliers,we were clear we were not trying to undercut the hotels in Spokane; and said
that many of those he and Mr. Driskell spoke with were not familiar with the TPA. Mr. Driskell added that
several hoteliers suggested using the funds to help create our own identity and as a way to attract people to
the hotels.
Discussion included mention by Mr. Driskell that if we were to form our own TPA,an advantage would be
that we could enter into agreements with such entities such as the Sports Commission and Visit Spokane,
in order to have them identify what they would do with any funding we might disburse,and said that such
a contract would also provide some identifiable goals.Mayor Wick noted that not all groups are aware there
are two separate funds: the TPA dollars and the LTAC (Lodging Tax) dollars. Mr. Calhoun stated that if
we were to start our own TPA,he envisions it would be handled much the same way we do with the LTAC
funds, with separate applications for each source. Council ultimately decided to have staff bring back the
options,the process, and a resolution, for Council's consideration at an upcoming meeting.
4. Code Enforcement Program Follow-up,Topic 1: Parking &Vehicle Storage—Jenny Nickerson
Building Official Nickerson went through the PowerPoint presentation explaining some of the concerns
about vehicles parking or being stored in the City's right-of-way and other areas such as on a front lawn;
she mentioned our off-street parking regulations concerning the number of vehicles per unit;went over the
nuisance regulations contained in our Code; gave some examples of enhanced regulations contained in
22.50 SVMC, as well as examples of enhanced enforcement to consider.Mr. Driskell said the question for
Council is,what does Council want in residential neighborhoods.Mr.Driskell also noted that he and Traffic
Engineer Clark will be back at a future Council meeting to discuss rights-of-way.
Lengthy discussion ensued including how to further define junk vehicles as well as the definition of junk
vehicles per state law; parking in multi-family areas with sometimes more than one family living in one
apartment; that some apartments charge more to use the covered parking areas; how best to address the
complaints such as people parking their RV in front of a neighbor's yard or home; how to address the
aesthetic or visual issue;motor homes on private property and how to confirm whether people are living in
the motor home;complaints about people parking in front of and blocking mailboxes; the idea of basing
the number of vehicles on lot size; and how to help residential neighborhoods keep their character. There
was some consensus to keep the number of RVs to one per property; and that Council would like staff to
bring back draft regulations that address that idea as well.
5. City Manager Presentation 2022 Preliminary Budget—Mark Calhoun
As part of the ongoing budget development process, and in keeping with state law,Mr. Calhoun presented
the 2022 Preliminary Budget.Mr.Calhoun said tonight he will focus more on concepts and less on numbers;
he stated that to ensure continued financial stability, it is imperative that we achieve two key goals within
our General Fund: recurring annual revenues must be greater than recurring annual expenditures; and that
the ending General Fund fund balance must be at least 50% of recurring expenditures. Mr. Calhoun noted
that we are able to do this year after year,even with a stressed economy as in the past one and a half years;
and said this is a reflection of the team approach our City has used between Council and staff in the budget
development process and in our approach to long-term fiscal sustainability. Mr. Calhoun went over the
2022 Council Goals;he noted our fiscal policies stated in the budget,adopted by and adhered to by Council
and staff are integral in maintaining the current and long-term fiscal health of our City; and adhering to
these policies is a major factor in our City maintaining the very good bond rating from Moody's Investors
Services, of Aa2. He discussed financial management and objectives; and said our commitment to policies
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Approved by Council: 10-26-2021
enables us to better meet our priority service needs of public safety, pavement preservation, transportation
and infrastructure, and economic development.
Mr. Calhoun went over the program budget highlights and staffing levels, followed by discussion on those
priority services. Regarding challenges, Mr. Calhoun noted declining revenues in the Street O&M Fund
101, balancing the cost of pavement preservation against other transportation and infrastructure needs,
railroad grade separation projects, and continuing to address the Covid-19 pandemic. Mr. Calhoun delved
further into service priorities including the street O&M fund 101 with the continuing challenge to determine
how to fully finance that fund; he mentioned the Street Sustainability Committee and of their upcoming
November 9 presentation to Council; and he noted the several railroad grade separation projects. In
conclusion,Mr.Calhoun said we have a balanced General Fund budget with strong reserves;that the budget
continues to be hi excellent financial condition, and he again stressed that maintaining a fund
balance/reserves of at least 50% of recurring expenditures is necessary to meet cash flow needs.
In closing,Mr. Calhoun said we are a unique city and as such our situation is almost indescribable to other
communities to show what we have accomplished and are able to accomplish year after year; said we have
been successful for so long we take it for granted; he encouraged Council not to take it for granted as it
could be fleeting and with a couple of bad decisions, it would be gone; said we really want to hold the
course as we have done these past 19 years.Mayor Wick asked Mr. Calhoun if he feels the 2022 budget is
holding that course, and Mr. Calhoun replied he does absolutely; that we are in good shape. Mayor Wick
said he appreciates all Mr. Calhoun's efforts and the whole team on coming up with this budget.
ACTION ITEM:
6.Motion Consideration City Manager Recruitment—John Whitehead
Human Resources Manager Whitehead went over the background concerning the announcement of Mr.
Calhoun's upcoming retirement, and as shown on the Request for Council Action form, gave some options
for Council's consideration. After Mr. Whitehead then went through his PowerPoint presentation which
provided information about a traditional recruitment process, he suggested Council establish a recruitment
committee consisting of some members of Council, and some staff; and that he can return next week to go
over the job description and compensation, which would be included on recruitment bulletins. Mr.
Whitehead said using a third party recruiter would also take longer and the cost would be between$35,000
or$40,000; or this could be done internally with FIR working with the Council; he also included a possible
timeline with an appointment ultimately occurring in March.
Councilmember Hattenburg said he favors a hybrid approach with having staff and HR involved and not
hiring someone to do the job; said he wants a national search, but also wants a third party working with
HR.Councilmember Thompson said she favors a third party recruitment service with HR Manager support,
and have a committee of Councilmembers and maybe adding in staff, but being flexible. In response to
CounciImember Higgin's question about the cost of doing a hybrid approach, Mr. Whitehead said in his
experience, they have one price tag and if you ask them to do more, they would raise that price, but if we
do something instead of them,they would lower the price;and during an outreach,we could ask about what
we could do and therefore save some money. Ideas such as having some interviews via zoom were also
suggested. Deputy City Mayor Peetz said she likes the hybrid model and of the idea of using zoom when
possible. Councilmember Thompson said we have some really big shoes to fill and therefore feels it is
important to keep costs moderate, but that we need to invest money to get the right leader; said our City is
well run with thanks to Mr. Calhoun's Ieadership,the directors and the staff; said we are having to replace
someone who has done an exemplary job for our city.
Mayor Wick said he spoke with Councilmember Haley prior to tonight's meeting, and she is in favor of
trying to do a recruitment as well; said he would like to start the process, but not identify the committee
until we come back next week to see who those contacts might be. Councilmember Higgins said he still
feels there is no need to run into this without having all councilmembers here as they have experience in
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Approved by Council: 10-26-2021
this topic; said he feels Mr. Whitehead has done this before and this isn't too much different from what has
occurred in the past, and he is confident Mr. Whitehead will do the necessary work; but added that he still
protests that not all Councilmembers are present tonight. Councilmember Thompson agreed is it important
to wait to set the committee until all Councilmembers are in attendance. Mr. Driskell said he feels we have
some Council consensus, with reservation from one, to use a hybrid approach, although we are not exactly
sure what that would look like, but staff will work toward that and come back at the next meeting when we
will have some options for council within that framework.
NON-ACTION ITEMS:
7, Advance Agenda—Mayor Wick
Councilmember Thompson said she would like a report on some of the safety issues that have come up
from citizens, about lighting in some areas in particular the new four-way stop area at Mission and Park;
and about signals for sections of the Appleway Trail; said she was notified that a woman was hit by a car
last spring; said some of the intersections across the Trail have signals and some don't and said she
wondered if there have been other incidents. There was consensus to add this to the Advance Agenda.
8. Department Monthly Reports
The Finance Department and the Police Department Reports were for information only and were not
reported or discussed.
9. Council Check-in Mayor Wick
There were no additional comments.
10. City Manager Comments—Mark Calhoun
Mr. Calhoun noted and read a letter he received from the Washington State Association of Municipal
Attorneys, recognizing the contributions of Deputy City Attorney Erik Lamb, and that he was given the
honor of being selected with a 2021 Outstanding Service Award.
It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to adjourn. The meeting
adjourned at 8:40 p.m.
ui
A E Ben Wick, Mayor
ristine Bainbridge, City Cler c
Council Meeting Minutes,Study Session: 10-05-202 1 Page 4 of 4
Approved by Council: 10-26-2021