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2003, 07-29 Study Session MinutesAttendance: Councilmembers: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Richard Munson, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember MINUTES City of Spokane Valley City Council Study Session July 29, 2003, 6:00 p.m. Staff: David Mercier, City Manager Nina Regor, Deputy City Manager Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Mike Jackson, Parks & Recreation Dir. Cal Walker, Police Chief Marina Sukup, Comm Development Dir. Tom Scholtens, Building Official Neal Kersten, Public Works Director Scott Kuhta, Long Range Planner Kevin Snyder, Current Planning Manager Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk Mirabeau Project Design Team: Ron Tan SueLani Madsen Doug Mitchell Kay Bachman Mayor DeVleming opened the meeting at 6:00 p.m., welcomed all in attendance, reminded everyone that this is a study session and there will be no public comments, and requested that all electronic devices be turned off for the duration of the meeting. 1. Employee Introductions: City Manager Mercier introduced newly hired Current Planning Manager Kevin Snyder, most recently from Beaverton, Oregon. 2. Tourism Bid Information: Sterling Hospitality Management Marketing Director Harry Sladich, Red Lion Hotel General Manager and President of the Spokane Hotel /Motel Association Ron Anderson, and Attorney James Sloane gave a presentation on the proposal to develop a Tourism Promotional Area (TPA). They explained that the recently passed Senate Bill 6026 enabled our region to develop a TPA which has the potential of bringing over $1.5 million in new tourism marketing funds to the Spokane Region. They explained the process to implement the TPA and said that with each jurisdiction, the PA would have to be approved by hotels totaling 60% of the assessed value. If approved, hotels could charge visitors a fee not to exceed $2.00 for each room night occupied; the assessment would be paid by visitors to the county and would simply be a "pass- along" fee. Council was asked to consider drafting and passing an ordinance to allow the hotels to begin this process. It was also mentioned that hotels under 40 rooms would be exempt and hotels that have contracts with people who stay over thirty days would also be excluded. Council was asked to appoint two hoteliers from the Valley to be on the commission, and for the City of Spokane Valley to give its endorsement of the proposal. Attorney Sloane said they are proposing that the County be the lead legislative agency; that this would not be a tax but a fee; that this was presented to Spokane County and Spokane City; that the County agreed to be the lead legislative authority, and the City of Spokane will get involved via the interlocal agreement process. Council was asked to do the same. As this was a first touch on this issue, the matter will be referred to staff and brought back for further consideration at a later date. 3. Mirabeau Point Project. Deputy City Manager Regor, Finance Director Thompson, and Parks and Recreation Director Jackson explained that although the packet does not contain any new information, the members of the Design Team are present to give a briefing on some of the issues previously raised by Study Session Minutes 7 -29 -03 Page 1 of 3 Date Approved by Council: 08 -12 -03 Council. Design Team member Ron Tan explained the background of the project including the original ideas of having a civic center; he showed various sketches of the project and explained several original plans, which included plans for a performing arts auditorium with 1500 seats, a planetarium, and an educational center. The project was finally narrowed down to a community building, a senior center, and an educational building. He explained that the Great Room would seat 400 and would have a flat floor conducive to dances, with a portable stage of approximately 28 by 28. The plans also call for a second floor containing lounges, meeting rooms, classrooms, a wellness center for the seniors, and a 100 -seat high tech lecture room. The Great Room would also have access to an outside performance area with additional seating. Discussion turned to cost to build the center, operation and maintenance cost and operation and maintenance cost if the second floor was omitted, which would also led to discussion of loss of potential rental income from those spaces; having the second floor shelled in but not used; focus groups' study outcome; expense in increasing the Great Room; effect of elimination of other areas such as some of the classrooms and /or the high tech lecture room, and finally of what constitutes breaking ground. Attorney Ormsby indicated if we have a plan for improvements and we take some steps consistent with implementation of that plan, that would constitute commencement. Ormsby said he is talking about site preparation, leveling the site and putting in footage to commence construction; that the key is having a plan for the improvement that shows this as step one in that plan, and that should be sufficient as commencement insofar as the State Auditor's office is concerned. Ormsby said some actual site work must be done and not just a groundbreaking, and that this needs to be done by December 31, 2003. Ormsby also said that he is working with the State Auditor's Office and the Department of Revenue to work on actual definition of what they will allow; that classroom space is not a use that regional funds can be used for, but meeting space that might be leased in part by colleges on a periodic basis might qualify; and that we want to present a plan that gives us flexibility. Ormsby said he will talk with staff tomorrow in the State Auditor's office and hopes to be able to come back to council with enough information so council can make a policy decision. Parks and Recreation Director Jackson then explained the proposed revenues and expenses, and further discussion ensued regarding the possibility of removing some positions and refining all salaries. In summary, it was determined that Council is not asking for a change in the footprint of the building, Council would like to examine the possibility of having the second floor "shelled -in" in an effort to save an approximate $175,000 on development costs; they prefer not to look to market space for conference activities so as not to compete with what is out there; there should be no effort to market the building for conference purposes so staff should examine eliminating the marketing position. The issue will be brought back again for further discussion. 4. Franchise Ordinance Update: In the interest of time, this item was removed from the agenda and will be discussed at the next meeting. Mayor DeVleming called for a recess at 8:30 p.m.; he reconvened the meeting at 8:45 p.m. 5. Adult Entertainment Ordinance Moratorium Update: Long Range Planner Kuhta gave a PowerPoint Presentation which outlined his July 21 memo regarding adult business regulations and explained that the current moratorium on filing and accepting development permits or land use approvals associated with adult entertainment and adult establishments, expires September 27, 2003. Discussion ensued regarding the adult business zoning regulations, the current amortization provisions, and that the moratorium can be extended if necessary. Deputy City Attorney Driskell added that it would be appropriate for Planning to have a public hearing on this issue. City Manager Mercier suggested asking the Planning Commission to discuss all elements of the ordinance and provide recommendations, observations, and comments. Council concurred. In the interim, it was decided to bring a new six -month moratorium to the next meeting for council consideration. Study Session Minutes 7 -29 -03 Page 2 of 3 Date Approved by Council: 08 -12 -03 It was moved by Councilmember Munson and seconded by Councilmember Taylor to extend the meeting to 9:15 p.m. Council concurred. Added Agenda Items: City Manager Mercier explained that Dick Warren has agreed to provide continued consultation to the City on wastewater issues, but that Warren is looking for relief on securing the coverage for Worker's Compensation and other insurance as that insurance coverage is often cost prohibitive. City Manager Mercier also discussed the City becoming a member of the National League of Cities and that a budget adjustment would be necessary if council so desired. It was moved by Councilmember Munson and seconded by Councilmember Denenny that the insurance provisions identified as sections 10.A.,B. and D. contained in the City's standard form agreement for professional services be waived for purposes of securing the individual services of Richard E. Warren, P.E., on an "as- needed" basis addressing wastewater treatment and other public works issues. Vote by acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. It was moved by Councilmember Munson and seconded by Councilmember Taylor that the City of Spokane Valley become a member of the National League of Cities and that a budget adjustment be prepared to reflect the cost of membership and participation in that organization. Vote by acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Mayor DeVleming reported that he received correspondence from the Regional Sports Commission requesting our support for the 2007 US Figure Skating Championships to be held in Spokane. Mayor DeVleming said this type of request would normally go through a process, but time is of the essence. It was moved by Mayor DeVleming and seconded by Deputy Mayor Wilhite to give a letter of support. The council concurred. 6. Advance Agenda. Councilmember Flanigan mentioned that he would like to report at the August 12 Council meeting, on the outcome of the Request for Proposals for Activities to Increase Tourism in Spokane Valley. It was moved by Councilmember Munson and seconded by Councilmember Denenny to extend the meeting another 15 minutes. No objections. 7. City Manager Comments: City Manager Mercier commented on the Transportation Improvement Board meeting he attended wherein they discussed funded projects; he added that this Board has accepted the invitation to have their 2004 meeting here in our council chambers. City Manager Mercier reported that he received a copy of a resolution enacted by the Board of Commissions allocating two positions on the Board of Health and that the seats are available effective September 1. There being no further business, it was moved, seconded and unanimously agreed upon to adjourn. The meeting adjourned at 9:25 p.m. ristine Bainbridge, ity Clerk Study Session Minutes 7 -29 -03 Page 3 of 3 Date Approved by Council: 08 -12 -03 To: City Council From: David Mercier, Public Safety Director Date: July 29, 2003 Memorandum Subject: Background and Suggested Motions Regarding Two Items: Waiver of insurance Provisions and National League of Cities Membership Note #1: As a sole practitioner, the cost of acquiring broad insurance coverage is often prohibitive. Dick Warren has agreed to provide continued consultation to the City on wastewater issues but is looking for relief on securing $1,000,000 coverage for Worker's Compensation Stop Gap (he has no employees), $1,000,000 coverage for General Liability for bodily injury and property damage, and $1,000,000 coverage for errors and omissions. Dick has agreed to provide intermittent services under his own name, which saves the City about $25.00 per hour than if he worked under the Prothman Company. Suggested Motion: That the insurance provisions identified as sections 10. A., B. and D. contained in the city's standard form agreement for professional services be waived for purposes of securing the individual services Richard E, Warren, P.E. , on an "as- needed" basis addressing wastewater treatment and other public works issues. Note #2: Several Councilmembers have expressed interest in joining about 1,750 other cities as members of the National League of Cities (NLC) and participating in their twice yearly conferences. The annual dues are based on community population and would be $5.504. A 50% discount is applied in the first year of NLC membership; hence our cost in 2003 would be $2,752. 1 estimate that attendance at either the December Congress of Cities or the March Legislative gathering in Washington, DC will cost about $1,600 per attendee. Suggested Motion: That the City of Spokane Valley become a member of the National League of Cities and that a budget adjustment be prepared to reflect the cost of membership and participation in that organization. FOLLOWING IS AN EXCERPT FROM MIKE ORMSBY MEMORANDUM OF JULY 11, 2003 (a) Regional Centers — Uses. It is important to distinguish as we enter into this discussion that there are a number of uses that a City facility can be put to. The issue to discuss here is not what the City should or should not do in this regard, or even what our worthwhile uses or projects to house within the Project, but what uses will qualify as a "Regional Project" under the definitions provided in statute and by regulation from the Department of Revenue so that they qualify for reimbursement with Regional Project Tax Revenues ( "Tax Revenues "). The statute defines a "Regional Center" as: "...a convention, conference or special events center. ...A special events center is a facility available to the public, used for community events, sporting events, trade shows, and artistic, musical, theatrical, or other cultural exhibitions, presentations, or performances." (RCW 35.57.020) We have been working with Mike Jackson and City staff in discussing possible uses and how those uses may qualify, or do not qualify for housing within the portion of the facility financed with tax revenue. It will be important, to have a "plan" developed and in place both for the discussion of operation and maintenance expenses and "commencement" of the Project for purposes of qualification for the receipt of Tax Revenue. 9/09 PE: Preliminary Engineering RW: Right of Way Acquisition CN: Construction S$1an� jUalley TIB Funded Projects 2003 Projects Mission Rd. $1,938,828 $484,707 $2,423,535 Evergreen Rd. $2,229,551 $557,449 $2,787,000 16th Ave. - Project 1 $1,856,013 $1,258,270 $950,347 $4,064,630 - (Evergreen to Sullivan) 16th Ave. - Project 2 (PE, RW) - (Dishman -Mica to SR 27) 2004 Projects Park Rd. - Prjoject 2 $626,000 $156,000 $782,000 - (2nd Ave. to 8th Ave.) Pines /Mansfield (PE, RW)* $565,000 $110,000 $675,000 16th Ave. - Project 2 (CN) $1,672,000 $260,000 $1,932,000 - (Dishman -Mica to SR 27) Barker Road Reconstruction ** $401,000 $101,000 $502,000 (PE, RW) AIP: Arterial Improvement Program STP(U): Surface Transportation Program (Urban Improvements) TPP: Transportation Partnership Program Total Project AIP Funds STP(U) TPP Funds Local Funds Costs Still waiting for $330,000 from State. Portion of TPP funds committed are from developers " AIP Funds have not been allocated yet. GAS S Roonl ! i))t')& -- 9326 GREAT !Qoon'1 — !0,915' S5AfOR Iv/NJ- — 7032. C , Rc ut --A'r so' i -- 3172 Adult Oriented Business Discussion Background • Zoning Regulations Licensing Regulations S jUalley July 29, 2003 >e/e &,y BACKGROUND Spokane jUalley Spokane County adopted new adult oriented business regulations on September 7, 1999 City of Spokane adopted similar regulations Zoning - Siting of adult businesses (Zoning Code) Licensing - Activities within the businesses (Chapter 7.80 of County Code) Currently 4 Retail Use and 1 Adult Entertainment ZONING REGULATIONS Classification Current Siting Standards Map of Allowed Locations Amortization Sjk'an ■Ualley Spokan� jUalley Adult Business Classifications Adult Retail Use Establishments - Adult oriented merchandise - Castle Superstore - 4 in Spokane Valley Adult Entertainment Establishments - Live entertainment and arcades - Deja Vu - 1 in Spokane Valley Current Siting Standards • B -2 and B -3 Zones ONLY • 5 contiguously zoned acres • 1000 foot buffer from: - Public libraries - Public playgrounds or parks - Public or private school and grounds, K -12 - Nursery school and day care facilities - Places of religious worship - Another adult use under same regulations - Urban residential zones (UR 3.5, 7, 12 and 22) Sii`OkS`` jUalley v n o 4 „, 4 n S 1 � I ' oft\o'\44,.., a ne jValley Current Amortization Provisions • All nonconforming Adult Retail Use Establishments to terminate business 5 years from date of adoption — Sept. 7, 2004 • Does not apply to Adult Entertainment Establishments Policy Discussion • Current regulations ok? Current regulations too strict? Disperse adult businesses or consolidate • Amortization Siokane Valley LICENSING Definitions Business Licensing Manager and Entertainer Licensing Standards of Conduct Premises Siokane jUailey Definitions Chapter 7.80 of County Code • Adult Entertainment Establishment Live entertainment and arcades S Valley Business Licensing S6U s% • jUalley • Adult Entertainment Establishments require a license issued by the City • Application requires information on owners, operators, employees and location Fingerprints and photographs Scale drawing of facilities Sj61' Valley Manager and Entertainer Licensing License required from City • Name, address, phone, birth date /place, fingerprints, color photo, SSN, stage or nicknames and criminal convictions License can be denied • Planning currently administers manager and entertainer licensing Standards of Conduct Stiokat ��Ualley • Separation distances between customers and entertainers • Amount of clothing that must be worn on and off stage Limits the sexual nature of live performances Premises Lighting Signage Design of arcade booths and stages Spokane jUalley A a r (4, _ .7"/" "4. . A ■ ./ V/A>Z .,Z4 A"e" FOR MORE INFORMATION PLEASE CONTACT: Ron Anderson, Hotel -Motel Association, (509) 755 -6613 Dean Foldmeier, Doubletree Hotel City Center, (509) 744 -2306 Harry Sladich, Sterling Hospitality, (509) 928 -6848 Ext 535 John Brewer. Spokane Regional CVB, (509) 624 -1341 For a full text of Senate Bill 6026: Go to yoste .ls &w'°v Click on: "Bill Info" Type in: 6026 in "Bin Number" The following organizations endorsed Senate Bill 6026 and support the Tourism Promotion Area: Spokane Hotrl -Motel Asscxiation Spokane Restaurant Association Spokane Regional Sports Commission Spokane Regional CVB SEACAB Spokane Public Facilities District Spokane Regional ChombcrofCamm:rex Washington Association of Convention and Visitor Bureaus Washingoan Economic Development Association Spokane Wiley Chamber of Commerce Downtown Spokane Pattncrship Spokane BID Executive Committee Spokane Valley Tourism ism Committee City of Spulcube Spokane Valley City Council "We've got a great story to tell. We just don't have enough money to tell it." Ron Anderson. President. Spokane H orig. Motel Association A Tourism Promotion Area Will Put MORE HEADS !N BEDS & GROW THE ECONOMY Senate Bill 6026 has enabled our region to develop a Tourism Promotional Area (TPA). A TPA brings the potential for over $1.5 million in new tourism marketing funds to the Spokane Region. Growing the consolidated promotion of the region will help make our area a top -of -mind destination that will fill hotel rooms and gamy our economy through visitor aipending. Spokane Hotel -Motel Association 7322 W. Johannsen Ave. Nine Mlle Falls, WA 99026 Cant= your local officials TODAY! The Spokane Hotel -Motel Association has been exploring incremental funding opportunities from various resources. This past Legislative Session the Association developed Senate Bill 6026, the Tourism Promotion Area (TPA) legislation. It was awed by the Senate and Howse in the 2003 regular Session. and on May 8'' was biped into law by Governor Gary Locke. Spokane County and cities within the County are now being encouraged to develop a county -wide TPA utilizing this legislation. Development of a TPA could generate roughly $1.5 million in incremental tourism, convention and sports marketing dollars. TOURISM PROMOTIONAL AREA What happens next? • The City of Spokane Valley, City of Spokane and Spokane County must approve the enabling legislation by passing ordinances allow- ing hotels to begin the prvicesa to implement the TPA. • Within each jurisdiction, the TPA would have to be approved by hotels totaling 60% of the assessed value. • if approved, hotels would charge visitors a fee ranging from twenty - cents, not to exceed $2.00, for each room night occupied in Spokane County. This assessment would be paid by visitors to the county, and would simply be a pass -along fee. • The Hotel -Motel Association is drafting ordinances and agreements between the City of Spokane, the City of Spokane Valley and Spokane County that Include: a. County wide implementation by all three jurisdictions, to support regional promotion. b. Funding can only be used for tourism and sports marketing. c. Cannot supplant existing tourism marketing dollars to the Spokane Regional Convention & Visitors Bureau or the Spokane Regional Sports Commission, but is meant to grow the funds to make our region more competitive. d. A board of hoteliers will oversee the marketing use of the funds. The hotel association will recommend candidates to each gnvemment for appointment. The board will consist of four hoteliers from Spokane, two from Spokane Valley, one from Spokane County and one from Liberty Lake. There will also be ex- officio positions for each government. Thc board will determine how the CVB utilizes these incremental marketing funds c. A detailed breakdown of rare structure and anticipated collections from each hotel in Spokane County. • The TPA enabling legislation is effective July 27th, which is 90 days after the end of the regular Legislative session. TOURISM PROMOTIONAL AREA Why do we need this? • Spokane needs additional tourism marketing funds to be competitive. • Tourisrn in Spokane County currently accounts for an estimated $497 million annually in direct visitor spending, nearly 9,000 jobs and $43 million in suite and local tax revenue. • The Inland Northwest has an uphill struggle competing with tourism, sports and convention hubs in the area, such as Denver and Albuquerque, New Mexico, which have greater name recognition. • The Spokane Regional CVB works with a limited budget of just $1.4 million compared to similar communities whose budgets are nearly double our CVB's. • With the growth of our tourism attractions, recreational events, and sports facilities and services in the region, The Northwest Museum of Arts and Culture (MAC), Convention Center, Spokane County Fair and Expo Center, Plantes Ferry, Fox Theater and Mirabeau Point, retail shopping outlets and hotels, etc., it is imperative to have sufficient marketing dollars to compete with other communities across the country. • To promote the region as a world - class destination we need funding to advertise on the national and international levels. ACTION: Please contact your City Council and County Commissioners and tell them why establishing a county -wide TPA is important and how this will benefit and increase economic development in our region. City of Spokane Valley: (509) 921 -1 000 City a( Spokane: (509) 625 -6255 Spokane County: (509) 477 -2265