2009, 12-01 Study Session Minutes MINUTES
SPOKANE VALLEY CITY COUNCIL
REGULAR MEETING
STUDY SESSION FORMAT
Spokane Valley City Hall Council Chambers
Spokane Valley,Washington
December 1,2009 6:00 p.m.
Attendance:
Councilmembers Staff
Rich Munson, Mayor Dave Mercier, City Manager
Dick Denenny, Deputy Mayor Mike Jackson, Deputy City Manager
Rose Dempsey, Councilmember Mike Connelly, City Attorney
Bill Gothmann, Councilmember Neil Kersten, Public Works Director
Gary Schimmels,Councilmember Ken Thompson, Finance Director
Diana Wilhite, Councilmember Mike Stone, Parks& Recreation Director
Dean Grafos, Councilmember Kathy McClung, Community Dev. Director
Rick VanLeuven, Police Chief
Cary Driskell, Deputy City Attorney
Morgan Koudelka, Sr. Administrative Analyst
John Whitehead, Human Resources Manager
Karen Kendall, Associate Planner
Tavis Schmidt, Assistant Planner
Greg McCormick, Planning Manager
Mary Kate McGee, Building Official
John Hohman, Senior Engineer
Lori Barlow, Associate Planner
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 meeting.
Oath of Office: Councilmember Dempsey administered the oath of office to Dean Grafos, who then took
his seat at the dais.
At the Mayor's request, City Clerk Bainbridge called the roll; all councilmembers were present.
ACTION ITEMS:
I. Second Reading Proposed Ordinance 09-034 Cable Franchise—Morgan Koudelka
After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Wilhite and
seconded to approve Ordinance 09-034, Comcast Franchise Agreement. Senior Administrative Analyst
Koudelka explained that the ordinance grants a nonexclusive franchise to Comcast to use the City's
rights-of-way to provide cable to our citizens; and he highlighted the major items negotiated between the
two parties. Mayor Munson invited public comment; no public comments were offered. Vote by
Acclamation: In favor: Unanimous. Opposed:None. Abstentions: None. Motion carried.
Councilmember Grafos:
Councilmember Grafos asked as a point of order, if he could make a statement, and Mayor Munson
agreed. Councilmember Grafos read the following statement:
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"As a new council member and as a point of privilege, I would like to make a short statement
tonight: As I assume this council position, I look forward to finishing the year's business with the
present council, as well as working with the new council this coming January. As this is my first
official meeting, and though not yet up to speed on parliamentary procedure and council protocol,
I would like to enter into the record a number of my goals for the coming year. Because economic
conditions in our community, as well as elsewhere, are in a severe downturn characterized mostly
by DEFLATIONARY pressures, I will propose the following:
1. At this time,freeze all scheduled salary increases, cost-of-living increases and hiring for City
employees. Salary or hiring decisions which will impact City budgets in 2010 and beyond should
be left to the discretion of the new council beginning January 2010.
2. Halt all NON-ESSENTIAL spending. Review department by department the goals, spending,
and personnel requirements, and ensure we are spending taxpayer money only on essential
services.
3. Rescind the 2.9%property tax increase recently imposed by this council. Taxes should always be
a LAST resort, not the FIRST option.
4. Suspend any further negotiations pertaining to land purchases for a new city hall, including any
further spending on architectural drawings and site plans contracted for a city hall at University
City.
5. Restore property rights and zoning entitlements to all City of Spokane Valley property owners by
rescinding city-wide zone changes enacted in 2007. Rescind the huge, unfunded and misnamed
mandate called Sprague/Appleway Revitalization. This is an arbitrary and selective "choke-down"
through zoning restrictions of hundreds of businesses and properties along the Sprague corridor to
benefit a few. I will work tirelessly with all affected and interested parties to develop and re-
develop the close-in, opportunity-rich properties in the University City area.
6. Along with the previously stated goal, we must rescind previous council action which approved
changing the current one-way traffic in the U-City area back to two-way traffic. Time after time,
the public has spoken that they want NO changes made in the existing roadways. Besides ignoring
community wishes, it is also non-essential spending.
7. The City Council and all employees serve the citizens, not vise-versa. Business knows this, so
should government. Public testimony should not be interrupted and/or met with reprimands that
impede free speech and discourage participation. Effective leadership is inclusive, strengthened by
diversity of thought. We are an independent community, and success here recognizes and
appreciates our Valley "culture. "
8. in addition, conflict and litigation with citizens and other government entities should not be a
preferred course of action. It represents our community poorly, is disrespectful, and is a costly and
negative way of conducting business.
9. Lastly, I serve in this office at the pleasure of the citizens. Last time i checked, we are elected,
not entitled, and no one person is indispensable. For all of us, there will be an ending moment
Until such time, I will do my best to be a frugal steward of taxpayer money, to work for lower-cost
efficient government, and with an open door, try to listen and serve all citizens and job-creating
businesses fairly.
Thank you. Dean Grafos"
2. First Reading Proposed Ordinance 09-036 Code Amendments—Tavis Schmidt
After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Denenny and
seconded to advance Ordinance 09-036 to a second reading. Planner Schmidt explained the proposed
code text amendments which had previously gone before the Planning Commission; and which he had
presented to Council at the November 17 meeting. Via his PowerPoint presentation, Mr. Schmidt
discussed the background of this proposal; he discussed the proposed change to nonconforming structures
and uses, the adding of cargo shipping containers and similar enclosures as not being a permitted
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accessory structure in any residential zone; clarified language concerning the accessory dwelling unit
(ADU) size, discussed types of home occupations and which are permitted as accessory uses and which
are not; and further defined home occupations.
Councilmember Grafos said that he probably needs to recuse himself because he is in the container
business, but he said he had questions, and he asked for clarification concerning shipping containers not
being allowed in a residential zone; and Mr. Schmidt confirmed that is the case. Mr. Schmidt said that the
Building Code does not recognize them as a structure; and by putting this clause in our municipal code, it
will agree with the Building Code. Councilmember Grafos asked for clarification also on what a similar
structure is, and Mr. Schmidt said examples would be a tractor trailer, things that are not typically an
accessory like sheds or anything that is not like a typical residential storage or shop building, and said that
a pool building would not be disallowed, and confirmed that any accessory building under 200 square feet
would not need a permit. Mr. Schmidt stated that the POD structures would be allowable as they are
temporary, and the Building Code permits such up to six months. Further discussion included questions
concerning the types of home occupations such as artists, Mary Kay consultants, music teachers, etc., and
it was determined that the definition of"home occupation" will be further examined at the time of the
second reading. Councilmember Wilhite noted that page 3 nonconforming uses #7 states that damaged
structures must be restored within 12 months, and questioned the difference between that and the subarea
plan which allows for such restoration to be done within 24 months. City Attorney Connelly explained
that that issue was not previously addressed, and if Council would like that issue addressed, the matter
should be conducted by the normal channels of a future staff administrative report, a public hearing by the
Planning Commission, and a forwarded recommendation from that hearing to the council. There was
council consensus to have staff proceed with that separate issue later as noted. Mayor Munson invited
public comment; no comments were offered. Vote by Acclamation: In Favor: Mayor Munson, Deputy
Mayor Denenny, and Councilmembers Schimmels, Gothmann, Dempsey and Wilhite. Opposed:
Councilmember Grafos. Abstentions: None. Motion carried.
3. First Reading Proposed Ordinance 09-037 Amending 2009 Budget—Ken Thompson
After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Wilhite and
seconded to advance Ordinance 09-037 to a second reading. Finance Director Thompson explained that
the original budget ordinance was assembled several months ago, and amendments are now needed to
allow for costs of street improvements, debt service accruals for payments on bonds, carryover street
project expenditures from 2008, on-going Barker Bridge construction, and carryover costs from 2008 for
Discovery Park. Mayor Munson invited public comment; no comments were offered. Vote by
Acclamation: In favor: Unanimous. Opposed: None. Abstentions: None. Motion carried.
4. Proposed Resolution 09-017 Employee Wellness—John Whitehead
It was moved by Councilmember Wilhite and seconded to approve Resolution 09-017 authorizing the City
Manager to implement a wellness program to lower the City's cost for health care premiums and to
improve the health of City employees. Human Resources Manager Whitehead explained that as mentioned
at the previous council meeting,the purpose of this action is to establish a wellness program would which
direct efforts to decrease the costs to the City associated with the health of City employees; that the goal
is to become certified as a Well City, and once attained, the Association of Washington Cities would
reduce the premium costs 2% for employees in those plans, with an expected estimated monetary gain of
$6,000 annually; and mentioned that other benefits would include improved health of the city employees,
lower absenteeism, and higher productivity. Mr. Whitehead said that there are 41 employees on the
Asuris Plan and 49 on Group Health; that staff will have a policy to address such things as time taken for
participating in wellness events, and AWC suggests a de-minimus amount of time; and that most of the
events would be during lunch or after work hours and/or weekends. Mayor Munson invited public
comment; no comments were offered. Mr. Whitehead added that the financial and non-monetary benefits
out-weigh the costs; that the City has applied for the AWC Incentive Program for Wellness, which would
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give us more than $1,500 in the first year to establish the wellness plan; and he said he does not anticipate
a budgetary impact; and the budgetary per employee impact noted in the material will then be reduced by
the funds received from AWC annually; so the goal is to ultimately have a plan which is self-sufficient
and puts funds back into the general fund. Mayor Munson said that the overall state participation about
two years ago was an estimated 11%; and this past year was 25%, with an anticipated 50% city
participation expected next year; and said that in 2015, it is expected if there is no wellness program, there
would be no insurance. Vote by Acclamation: In favor: Unanimous. Opposed: None. Abstentions: None.
Motion carried
5. Motion Consideration: Collective Bargaining Agreement—John Whitehead
It was moved by Deputy Mayor Denenny and seconded to ratify the Collective Bargaining Agreement
between the City of Spokane Valley and the Washington State Council of County and City Employees;
Local 270V American Federation of State, County and Municipal Employees (AFSCME),for the term of
January I, 2010 through December 31, 2012. Human Resources Manager Whitehead explained that
approximately two-thirds of our staff are represented by the local union mentioned, that our existing
contract expires December 31, 2009; that last July staff received a request from the Union to begin
bargaining over a successor contract; he explained that a management team was formed and five
bargaining sessions were held; that a tentative agreement was reached pending ratification by the Union
membership and the Council; and that the Union membership ratified the contract last week. Mr.
Whitehead also mentioned that the new contract clarifies management rights; that it requires city
employees to continue a health insurance benefit share of 40% of increases past the base amount
established in 2006, and that percentage is significant for employees especially in looking at our benefits
provided to employees compared with other cities. To further clarify, Mr. Whitehead explained that in
2006 the City paid 100% of those benefits; in 2007 a cost agreement was reached for a 60/40
(City/employees) split on on-going increases. Mr. Whitehead said the contract maintains the city's status
quo of adjusting salaries by 2.5% annually; it allows for a compressed work week for staff with
management control to ensure services are provided in a quality manner; it includes a competitive re-
alignment of our city's salary matrix using a 3% adjustment to address the slippage of our salaries as
compared with most Washington cities; and this contract maintains lower labor costs as compared to most
cities; he mentioned Union 270, which is a larger union with the City of Spokane, and explained that they
went into concessionary bargaining and their modified contract increased their staff's salaries in a greater
amount over the life of their contract then this contract before Council.
Councilmember Grafos asked what percentage of employees are in the union, and Mr. Whitehead said of
the 88 employees, 65 are represented; and Councilmember Grafos said he noted all the salaries on the
matrix have been increased for January 2010 which represents a 5.5% increase, and he asked if this
would keep salaries competitive with other cities. Mr. Whitehead said he believes it will; that when they
did their analysis with other cities with 30,000 and greater population, the City of Spokane Valley's
salary was about 9% behind; and that 3% makes up some of that, and while not getting all the way with
those other cities, Mr. Whitehead said he feels it will keep us competitive over the next three years in staff
recruitment and retention. Councilmember Grafos asked if most of the cities used for comparison were
on the West side, and Mr. Whitehead said they were all cities with a population of 30,000 or more, which
included cities on the east and west sides. Councilmember Grafos said that the average salary in King
County is about $57,000; and the average wage in Spokane County is about $34,000; and said he hopes
we would be comparing"apples to apples." Mr. Whitehead added that looking at competitors in the local
market was of importance as well, and looking at salaries with the City of Spokane. Councilmember
Grafos asked if we are in a period of deflation; and Mr. Whitehead said that what was reported in October
2009 was a small period of deflation, and November figures are not yet in. Councilmember Grafos stated
that 53% of the city revenues come from sales tax, which are down; and the building permit revenues are
down 41%,the land use revenues are down 38%, and building permits are down 23%; and he asked if that
would have any effect on these requested increases. Mayor Munson suggested putting this in perspective
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of the overall budget, and said that the salaries and benefits are about 15% of the operating budget.
Councilmember Gothmann added that there are no employees who have been here longer than six years,
which is not true of those on the west side, and said that a comparison of averages would show us being
low as compared with other cities as we have newer employees. Mayor Munson invited public
comments.
Brenda Grassel, 1418 N Woodruff Road: she said rather than comparing the union jobs with other
comparable cities, she proposed comparing the jobs with the private sector; and she said that in the private
sector industry there is probably not one company in Spokane Valley receiving a 5.5% increase in wages.
There were no other public comments.
In response to Council question for an explanation of the salary progression since the contract first began,
Mr. Whitehead explained that the city established salaries in 2003, and no adjustments were made until
about July of 2006, which was a 6% increase; and there was a 2.5% increase in January 2007, January
2008, and January 2009; and said the reason for treating the non-represented employees the same as the
represented employees is that whenever you lift the salary of a section of the employee base, supervisors
start to get compressed, with the common problem of doing more and having more responsibility with the
same or less money, it could even have an inversion on the salary spectrum; which ultimately causes
morale, retention and recruitment problems if not addressed. Councilmember Dempsey said staff have
been working on this for some time now, and over the time staff checked with council to make sure they
were on the right track as to where we were going and Council agreed we were on the right track; and
said at this point she considers this a good-faith issue, that we have to take care of our people and do the
right thing and that this is the right thing; and she thanked Mr. Whitehead for his work. Deputy Mayor
Denenny stated that the 3% is a one time adjustment; and over the next three years of this contract, it will
be a 2.5% increase, which is less than the Union in the City of Spokane agreed to in their concessions;
and that CPI for October was three-tenths of a percent which is almost 4% inflationary; and that we are
locked in at 2.5% over the next three years; and said unlike private businesses, no bonuses or incentives
or adjustments are given to government workers based on the profitability or unprofitability of the City,
which is why we have the classifications and the steps. Mayor Munson said we have a great staff who
have the primary motivation to provide the best services possible to the citizens; and said areas like
Yakima and Wenatchee are similar areas and our salary schedules are not up with theirs; and it will take
years to catch up on steps on where the other cities are who have been around for a hundred years; and he
said it is difficult to quote an average salary from elsewhere and apply it here as it does not apply; that we
are trying to keep a staff that performs better then possibly imagined; and that although wages are not a
satisfier for any employee, they can be a dissatisfier; and to lose employees for that reason would be a
mistake; and said that we came up with an agreement that we all felt was fair. Vote by Acclamation: In
Favor: Mayor Munson, Deputy Mayor Denenny, and Councilmembers Gothmann, Dempsey, and Wilhite.
Opposed: Councilmembers Grafos and Schimmels. Abstentions:None. Motion carried.
6. Motion Consideration: Authorize Change Order Pines/Sprague Intersection— Steve Worley
It was moved by Deputy Mayor Denenny and seconded to approve $200,000 in City Manager change
order authority for the Sprague/Pines PCC Intersection Project. Public Works Director Kersten, speaking
for Mr. Worley, explained that when the Pines/Sprague Intersection project was done last summer, a large
amount of debris was uncovered, and a change order was issued for about$127,000 and was inadvertently
approved even though it exceeded the 15% limit of the original construction contract amount; thus it
should have been brought to council for approval; and with staffs apologies, said they have re-reviewed
the City Manager's change order authority to help ensure this situation will not occur again; and that there
is one final minor change order needed for approval to close out this completed project; and he said that
STA funded grants of approximately 80% of this change order; adding that he doesn't think we will need
to do the bonus mentioned in the Request for Council Action form. Mayor Munson invited public
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Approved by Council: 12-22-09
comment; no comments were offered. Vote by Acclamation: In favor: Unanimous. Opposed: None.
Abstentions: None. Motion carried.
7. Motion Consideration: Lobbyist Contract—Dave Mercier
It was moved by Councilmember Wilhite and seconded to authorize the City Manager to finalize and
execute a renewal contract with Gordon Thomas Honeywell- Governmental Affairs for lobbyist services
in 2010. City Manager Mercier said that this is the annual consideration of the lobbyist contract which
was first initiated in 2006 to represent our interests in Olympia and Washington, D.C. if necessary; that it
calls for $3,000 monthly, which is the same as 2009; and said the desire is to continue the relationship.
Mr. Mercier further stated that we had never received a capital budget request from the legislature prior to
this, and during the first year we received an $800,000 allocation toward Discovery, aka Universal Park;
and about $500,000 for acquisition and development of a park in Greenacres, which at the time had no
park; and that we have received $1.3 million in direct allocations to date, in large measure to the good
work and understanding of this group's efforts. It was moved by Councilmember Schimmels and
seconded by Councilmember Grafos to table this contract until January. Vote on the motion to table: In
Favor: Councilmembers Grafos and Schinnels. Opposed:Mayor Munson, Deputy Mayor Denenny, and
Councilmembers Dempsey, Gothmann and Wilhite. Abstentions: None. Motion to table failed Mayor
Munson invited public comment; no comments were offered. Deputy Mayor Denenny commented that it
is a large asset to this City and to this Council to know what is going on in the legislature and to be able to
react to it prior to final determination, rather than to re-act afterwards. Councilmember Gothmann added
that Council received regular updates from the Lobbyists where there are no updates from the legislators
during a session, adding that council could not ask a legislator to lobby for a measure the City desired,
when that legislator opposed such measure. Councilmember Wilhite said that the lobbyist alerts Council;
that previous certain legislation was introduced that would have impacted the make-up of this City, yet
the City Council wasn't given a courtesy call by the Senator on that issue, whereas the Lobbyist did alert
Council, and she stressed the importance of keeping up to date on what's going on. Councilmember
Dempsey said she was impressed with their attentiveness to any problem or questions, and feels the
$3,000 monthly is well spent. Mayor Munson remarked that in a short session two years ago, 4,400 bills
were introduced, and said that no one has the time to read those and determine which might affect us, yet
that is what they rely upon the lobbyist to do. Vote by Acclamation on the motion to finalize and execute
the contract: In Favor: Mayor Munson, Deputy Mayor Denenny, and Councilmembers Gothmann,
Dempsey, and Wilhite. Opposed: Councilmenrbers Grafos and Schimmels. Abstentions: None. Motion
carried
Mayor Munson called for a recess at 7:30 p.m. and reconvened the meeting at 7:40 p.m.
NON-ACTION ITEMS:
8. Development Forum—Kathy McClung
Community Development Director McClung discussed the Developer's Forum held at City Hall October
1, 2009, in continued efforts for staff to meet with local developers and interested parties to discuss the
permit, development planning process. Ms. McClung explained that the forum generated forty comments,
that the format resulted in a list of topics which staff have already addressed, and a list of other topics to
be placed on the 2010 work program, and another,list that staff recommended not addressing. Director
McClung said the goal was to approach a broad range of citizens, and they sent out over 900 invitations,
resulting in forty-five attending the meeting. Director McClung added that the permit process was the
sole focus on a September meeting of the Spokane Valley Business Association (SVBA). Via her
PowerPoint presentation, Director McClung explained the outcome of the forum and the highlights of the
Report.
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9. Comp Plan/Legislative Zone Change with Development Agreement—Karen Kendall
Assistant Planner Kendall explained that comp plan amendment CPA 01-09 was the only privately
initiated 2009 comprehensive plan request, asking for a chance from Low Density Residential to High
Density Residential with a subsequent rezone from single-family residential to multi-family high density
residential; and she said that this draft amendment resulted in a first reading of the ordinance in May, but
at that time, Council concurred the matter warranted further research on development agreements in
association with comprehensive plan amendments, specifically for this CPA 01-09 amendment. Planner
Kendall further explained that staff researched the idea of a development agreement in association with a
comprehensive plan amendment and an emergency ordinance was adopted August 11, 2009 to establish
the guidelines and process to allow restrictions to be placed upon a comp plan amendment through a
development agreement, and that the use of development agreements are permitted by statute. She
mentioned that staff coordinated with the owners, applicant, and applicant's legal representative regarding
the proposed agreement, and all parties are in agreement with the development agreement; and that this
agreement would provide a transition to the adjacent low density residential designation to the east of the
proposed amendment, with the restrictions as noted in her Request for Council Action form. Planner
Kendall mentioned that this matter is scheduled for a public hearing and first reading at next week's
council meeting.
10. Lodging Tax Recommendations—Ken Thompson
Finance Director Thompson explained that the Lodging Tax Advisory Committee met October 22 to hear
applicant presentations regarding tourism promotion; and said that the Committee recommends
allocations of$125,000 to the Spokane Regional Sports Commission; $10,000 to Valleyfest; $200,000 to
Spokane Regional Convention and Visitor's Bureau; $90,000 to CenterPlace; and no funding to Spokane
Valley Heritage Museum. Councilmember Wilhite, who currently chairs the committee, said that
regarding the portion set aside for CenterPlace, the committee asked instead in the future, to have a
presentation from CenterPlace on why the funds are needed; which brought up again the question of funds
and how much we fund on a percentage to the larger agencies versus the smaller; and she further
explained that the Museum recommendation was for no funding; and that the committee suggests a better
effort made in the future to notify everyone to prepare and have research ready when they make their
presentation. Councilmember Gothmann said he would like to hear the rationale behind the decision not
to fund the Museum, and said it is his understanding Museum representatives would like to speak to that
issue next week when the item comes up for council action consideration. There was further discussion
among Councilmembers concerning the process as explained in the statutes concerning tourism; that
Mayor Munson said he would like the hotels/motels to have a simple questionnaire to determine how
many heads in beds Valleyfest brings in; comment from Councilmember Wilhite that Valleyfest does
result in more money spent in the community concerning shopping and restaurants; and comment from
Councilmember Dempsey and Mayor Munson that they feel Valleyfest is underfunded. Mayor Munson
said perhaps the topic of the funding mechanism for these agencies is a topic for the new council to
discuss in the future.
II. Poe Contract Renewal—Neil Kersten
Public Works Director Kersten said that Poe Asphalt has requested a 3.3% increase to their unit bid prices
for labor; and that all other unit prices will remain the same for 2010; that the contract was for one year
with seven one-year renewal options; that Poe has provided an excellent level of service in the past; and
that the contract will be funded by the approved 2010 budget. Mr. Kersten mentioned that there have
been numerous changes in the street standards which were made to address some of the shortfalls in the
current roads; that several roads are falling apart and/or the seams in the asphalt weren't done properly;
that some residential areas were only two inches thick; and once they fall apart you can't recover that; so
they will increase that depth to three inches to be able to do grind and overlay; adding that with the
current two inches of asphalt, they can't grind it so the entire road would have to be pulled up and
therefore the costs would increase by seven or eight times.
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Approved by Council: 12-22-09
12. AAA Sweeping Contract Renewal—Neil Kersten
As per the Request for Council Action form, Mr. Kersten explained that this contract was also a one year
contract with seven one-year renewal options; that AAA Sweeping has provided a good level of service in
the past; and there will be no increase in the 2010 unit prices; and that staff feels the contractor is very
efficient. Mr. Kersten mentioned that there have been some complaints about the number of trips made
by the sweeper; and Mr. Kersten explained that some areas are worse than others; and that we insist they
do not more than two passes; and if the street needs another sweeping, that they get staff approval first.
Mr. Kersten also mentioned that next year they are considering implementing the use of a GIS system to
monitor where the sweepers are. Mr. Kersten noted this will be before council next week as an action item
for consideration.
13. Park Policies—Mike Stone, Mike Connelly
City Attorney Connelly explained that this issue came about as the Parks and Recreation Department was
updating some of its administrative policies; and he said that the Legal Department recommends that
certain Code provisions pertinent to special events and vendors in parks be amended to be consistent with
current City practice and policies; and he mentioned the recommended changes for the number of people
for a special event permit and to change the notice from five days to four weeks notice prior to an event to
give sufficient time to process the request and ensure the request is within park practices; he said the
proposed change regarding the sale of goods and services is to make the provisions throughout the Code
consistent.
At approximately 9:00 p.m., it was moved by Councilmember Wilhite, seconded and unanimously agreed
to extend the meeting for thirty minutes.
Attorney Connelly explained that state law and recent court interpretation regarding the use or bearing of
firearms is to restrict firearm possession only in city-operated stadiums or convention centers; and staff
recommends that the provision prohibiting firearm possession in City parks and facilities be amended to
conform to state law; he also mentioned that cities can enact ordinances restricting firearm discharge
where there is a reasonable likelihood that humans, domestic animals or property will be jeopardized; and
said staff recommends we include that provision; and he brought Council's attention to the letter from
Police Chief VanLeuven concerning firearm discharge. There was Council consensus to bring this matter
forward for council action consideration.
14. Website Contract—Mike Jackson
Public Information Officer Branch and IT Specialist Greg Bingaman explained that although this item
does not require Council action, staff wanted to make Council aware of upcoming changes to our website,
as the website is accessed approximately 500,000 times annually. Staff reported that the City was
informed in 2008 by NexIT, the current website software provider, that they were abandoning the InSuite
software; and since then, we have been operating without software maintenance or support; which places
our website at risk. Mr. Bingaman explained that needs have expanded, that the web content is subject to
public records retention requirements effective January 1, 2010; and a greater amount of information on
the website equates to a greater effort to keep current. Ms. Branch described some of the new content
management program attributes and added features which all lends to improved navigation; and that
implementation of a new website is included in the 2009 business plan and budget; and acquisition is
expected by December 31, 2009.
15. Council External Committee Reports—Councilmembers
Deputy Mayor Denenny reported that regarding the Solid Waste Advisory Committee, there are two
groups: one of elected officials within the region, and one appointed with members having various areas
of expertise; and that it is being recommended that the Liaison Board be disbanded; he also mentioned the
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Approved by Council: 12-22-09
Spokane Regional Transportation Council (SRTC) presented a proposal for the board composition change
and they made it known they didn't get what was asked for; that there was a major issue related to
ownership of purchased property, and some major flaws on the way it was written concerning whether
SRTC should even own property; and said further research is sought on that topic
It was moved by Councilmember Gothmann, seconded and unanimously agreed to extend the meeting
another ten minutes, until approximately 9:40 p.in.
Councilmember Gothmann reported that at the National League of Cities session dealing with modern
communications,topics such as Facebook, bloging, twitter, etc. were discussed which all have presented a
number of challenges on how to keep city records; and said he wanted to make Council aware of this
topic; and said that next week he will also give a report on the TIB (Transportation Improvement Board)
topic.
16. Advance Agenda—Mayor Munson
There was council consensus to include the four information items on tonight's agenda, numbers 17 a, b,
c and f, on the next consent agenda. Mr. Mercier noted that the advance agenda has purposely shrunk to
two pages in respect for the new council to determine what items to place on future agendas, and he
brought attention to the new section on the back for "request for early consideration;" and said he will
await instruction on when to plot those and other topics.
17. Information Only: The following items were for information only and were not reported or discussed:
Geiger Work Crew Contract; Public Defense Interlocal Agreement; JAG Interlocal Agreement;
Ordinance to Amend SVMC 17.100.030; CenterPlace Food Services Contract; Soils Testing Access
Agreement; Department Reports.
18. Council Check in—Mayor Munson
As per his handout dated November 30, 2009, and entitled "Issues that Should be Addressed by a Council
Retreat" Councilmember Gothmann mentioned tentative items for next year's retreat, and he encouraged
City Manager Mercier to set up a retreat date.
It was moved by Councilmember Dempsey, seconded and unanimously agreed to extend the meeting an
additional ten minutes, to 9:50 p.m.
19. City Manager Comments—Dave Mercier
City Manager Mercier mentioned the handout of "2009-11 Budget Story" prepared by the Office of
Financial Management and dated November 19, 2009; and said the document discussed the $9 billion
shortfall and legislators' very limited choices to address that deficit as reduction options are limited by
constitutional and federal spending mandates. Mr. Mercier further explained that it is our understanding
that since everything is on the table for consideration, there could be an attempt to retrieve the last capital
budget allocation made to us as part of the Greenacres Park; that this community was impacted by
mitigation funds when the new streamlined sales tax went into effect and we were identified as one of the
entities that could lose funds; he said that the state tried to fund that mitigation and he does not know if
the funding will continue as it is too early to tell. Mayor Munson added that if ever we needed a lobbyist,
this is the time as legislators will be working on budget issues; and we will have our lobbyist there to help
protect our interests and keep us informed. Councilmember Gothmann mentioned that he received an e-
mail from Steve Gorchester from the TIB concerning a proposal to take the TIB and have it absorbed by
the Department of Commerce. Mayor Munson said that the Governor is expected to initiate revenue
enhancements, which means more taxes; and it was mentioned that a state income tax would require a
constitutional move and therefore, it is speculative whether that would occur next year.
Council Meeting Minutes: 12-01-09 Page 9 of 10
Approved by Council: 12-22-09
There being no further business, it was moved by Councilmember Wilhite, seconded and unanimously
agreed to adjourn. The meeting adjourned at 9:50 p.m.
ATTEST:
••
and M. Mui ,'Mayor
Christine Bainbridge;City Clerk -
Council Meeting Minutes: 12-01-09 Page 10 of 10
Approved by Council: 12-22-09
Thank you.
As a new council member and as a point of privilege, I would like to make a short
statement tonight:
As I assume this council position, I look forward to finishing the year's business with the
present council, as well as working with the new council this coming January.
As this is my first official meeting, and though not yet up to speed on parliamentary
procedure and council protocol, I would like to enter into the record a number of my
goals for the coming year.
Because economic conditions in our community, as well as elsewhere, are in a severe
downturn characterized mostly by DEFLATIONARY pressures, I will propose the
following:
1. At this time, freeze all scheduled salary increases, cost -of-living increases and hiring
for City employees. Salary or hiring decisions which will impact City budgets in 2010
and beyond should be left to the discretion of the new council beginning January 2010.
2. Halt all NON-ESSENTIAL spending. Review department by department the goals,
spending, and personnel requirements, and ensure we are spending taxpayer money only
on essential services.
3. Rescind the 2.9% property tax increase recently imposed by this council. Taxes
should always be a LAST resort, not the FIRST option.
4. Suspend any further negotiations pertaining to land purchases for a new city hall,
including any further spending on architectural drawings and site plans contracted for a
city hall at University City.
5. Restore property rights and zoning entitlements to all City of Spokane Valley property
owners by rescinding city-wide zone changes enacted in 2007. Rescind the huge,
unfunded and misnamed mandate called Sprague/Appleway Revitalization. This is an
arbitrary and selective "choke-down" through zoning restrictions of hundreds of
businesses and properties along the Sprague corridor to benefit a few. I will work
tirelessly with all affected and interested parties to develop and re-develop the close-in,
opportunity-rich properties in the University City area.
6. Along with the previously stated goal, we must rescind previous council action which
approved changing the current one-way traffic in the U-City area back to two-way traffic.
Time after time, the public has spoken that they want NO changes made in the existing
roadways. Besides ignoring community wishes, it is also non-essential spending.
/ -Ug
7. The City Council and all employees serve the citizens, not vise-versa. Business
knows this, so should government. Public testimony should not be interrupted and/or met
with reprimands that impede free speech and discourage participation. Effective
leadership is inclusive, strengthened by diversity of thought. We are an independent
community, and success here recognizes and appreciates our Valley "culture."
8. In addition, conflict and litigation with citizens and other government entities should
not be a preferred course of action. It represents our community poorly, is disrespectful,
and is a costly and negative way of conducting business.
9. Lastly, I serve in this office at the pleasure of the citizens. Last time I checked, we are
elected, not entitled, and no one person is indispensable. For all of us, there will be an
ending moment. Until such time, I will do my best to be a frugal steward of taxpayer
money, to work for lower-cost efficient government, and with an open door, try to listen
and serve all citizens and job-creating businesses fairly.
Thank you
Dean Grafos
Issues That Should Be Addressed By a Council Retreat
Bill Gothmann, Nov. 30,2009
Contract Negotiations Issues
1. Develop a revised police contract
a. Firm up the selection and dismissal process of the Chief?
b. Better definition of relationships between the parties?
c. Provide for sharing in forfeited property?
d. What level of service?
e. Should we control costs by(a)specifying dollars or(b) specifying service?
f. What performance measures should be implemented and who should decide?
g. Define an overhead allocation system ?
2. Give directions for legal in an exec session:
a. Negotiation of land at U-City.
b. Negotiation of Appleway east of University.
c. Addressing current and potential litigation issues.
Examine Council Goals adopted last summer
1. Continue monitoring wastewater issues.
2. Implement records indexing and phase in a document imaging system.
3. Implement and evaluate regulations for SARP.
4. Develop a shoreline master program
5. Pursue a legislative capital budget request for parkland adjacent to the Park Road pool.
6. Develop and implement a multi-year winter roads maintenance plan
7. Pursue state funding of a demonstration project that constructs a city hall in accordance with
"living building" standards.
Examine Important Financial Issues
1. Road Preservation Funding
2. Curb-to-curb Funding
Examine Goals Brought forward by new council members
1. Define the issues that need to be addressed.
2. Develop a plan for addressing each of these issues
3. Let's get busy working for our citizens!!
/Z71 jam'
1
The 2009- 11 Budget Story
Where we've been and
where we are now
Prepared by the Office of Financial Management
Nov. 19, 2009
Overview
• Over past 18 months, Washington has seen largest drop in
revenue in recent memory.
• Last session, we closed $9 billion shortfall through :
— cuts to programs and services
— use of Recovery Act funds
— fund transfers, including Rainy Day Fund
• As revenue projections continue to decline, we will need to
cut more to stay in balance.
• Reduction options are limited by constitutional and federal
spending mandates. This will narrow our choices.
11/20/2009
A
$ 9 Billion Problem by March 2009
Initial $3 billion problem due to increasing costs
Cumulative $6 billion
revenue
lost
Feb-08
Jun-08 Sep-08
Nov-08 Mar-09
• Before recession, $3 billion problem projected for 2009-11 due to health care
inflation, K-12 growth, prison population growth, pension obligations.
• Problem grew with recession, resulting in $6 billion loss in revenue from
Feb. 2008 - March 2009.
11/20/2009
Solving $ 9 Billion Gap :
Actions to balance budget
Early reductions $.3 B
Rain
Day
Fund
Froze pay,
transferred
funds
$2.1 B
Cut programs
$3.3 B
Recovery Act
$3 B
11/20/2009
$ 3 . 3 Billion in Cuts and Efficiencies :
Examples
• $600 million in K-12 through class size increases.
• $557 million in higher education by reducing 1,800 employees and
raising tuition 14% (universities), 7% (community colleges) per year.
• $386 million through administrative or across-the-board cuts.
• $255 million from Basic Health Plan by increasing premiums 70% and
reducing enrollment by 36,000 (36%).
• $127 million in payments to hospitals.
• $130 million from Corrections, including $73 million by reducing beds
and community supervision.
11/20/2009
All Areas of Budget Cut
Percent Reduction *
Low Income Other Human
Higher
Health Care Services All Other** Education K-12 Education
_8%
-8%
-7%
_5%
* Includes adjustments for additional tuition and Recovery Act money that offset reductions. Excludes
compensation and special appropriations.
** Includes general government (including legislative and judicial agencies); natural resources;
transportation; other education agencies.
Other States in Same Predicament
48 States Face Budget Shortfalls
NH
WA MT N D VT M E
OR MN MA
ID WY SD WI MI NY RI
NE IA OH
PA CT
NV UT CO IL IN WV NJ
CA KS Mp KY VA DE
TN NC MD
AZ NM OK AR SC DC
MS AL GA
TX LA
AK
HI
FL
• 48 states have addressed or still face shortfalls for FY2010.
• 49 states had total tax revenue fall during 2nd quarter; 36 report double-digit declines.
• 25+ states face new shortfalls after balancing budgets just months ago.
11/20/2009
Sources of $ 2 . 6 Billion Shortfall
Revenues dropping
• $686 million
• $238 million
• $760 million
• $154 million
• $1.84 billion
June forecast
September forecast
November forecast
Tax lawsuit pending
Subtotal
Costs rising, issues emerging
• $659 million
• $12 million
• $71 million
• $742 million
11/20/2009
increased demand for health care, schools, prisons
forest fires, landslides, dam failures, other
possible emergencies
lawsuits blocking planned cuts
Subtotal
What Should We Expect ?
Revenue uncertainty continues
According to state Economic and Revenue Forecast
Council :
• State revenues will lag economic recovery
• Job growth will lag economic recovery
• Unemployment will remain high
• Less revenue expected in 2009-11 than collected in 2007-09
11/20/2009
Majority of $ 31 Billion Budget Is Protected :
Tied to state constitutional or federal requirements
Corrections
5%
General
Government/Other
5 %
Other Human
Other K-12 2% Services
17%
Higher
Education 1%
Higher Ed:
Fed. Require. 8%
-
K-12 Basic
Education 41%
Mandatory
Medicaid/Foster
Care 14%
Debt Service/
ensions 7%
70% of the Budget Is Protected
Not protected
$9.3 billion
Protected
$21.6 billion
10
Possible Areas for More Cuts :
Non-Protected Budget
• Mental health and developmental disabilities services:
$1.6 billion
• Prisons/community supervision of offenders: $1.6
billion
• Care for low-income elderly: $1.3 billion
• Economic support for low-income families: $1.1 billion
• K-12 non-basic education funding (class size reduction,
others): $635 million
• Higher education: $500 million (most is financial aid)
• Juvenile corrections: $198 million
11/20/2009 11
Examples Not Enough to Fill Gap :
Non-Protected Budget
11/20/2009
• Eliminating all state-funded environmental and natural
resource protection, and all recreation and parks
programs : $364 million.
• Eliminating all state support for cultural and art
organizations, and all early learning programs: $164
million.
• Eliminating 23 of smallest general fund agencies: $52
million
Budget Timeline
Time Action
Mid December Governor's Supplemental Budget released
Feb. 18, 2010 Revenue forecast released
March 11, 2010 Session adjourns
11/20/2009
13