2010, 04-06 Study Session MinutesMINUTES
SPOKANE VALLEY CITY COUNCIL
REGULAR MEETING
STUDY SESSION FORMAT
Spokane Valley City Hall Council Chambers
Spokane Valley, Washington
April 6, 2010
6:00 p.m.
Attendance:
Councilmembers
Staff
Tom Towey, Mayor
Mike Jackson, Acting City Manager
Gary Schimmels, Deputy Mayor
Mike Connelly, City Attorney
Rose Dempsey, Councilmember
Kathy McClung, Community Development Dir.
Dean Grafos, Councilmember
Cary Driskell, Deputy City Attorney
Brenda Grassel, Councilmember
Ken Thompson, Finance Director
Neil Kersten, Public Works Director
Absent:
Greg McCormick, Planning Manager
Bill Gothmann, Councilmember
John Whitehead, Human Resources Manager
Bob McCaslin, Councilmember
Morgan Koudelka, Sr. Administrative Analyst
Mike Stone, Parks & Recreation Director
Rick VanLeuven, Police Chief
Carolbelle Branch, Public Information Officer
Chris Bainbridge, City Clerk
Mayor Towey called the meeting to order at 6 p.m. and welcomed everyone to the meeting.
Chief VanLeuven introduced Matt Lyons with the Sheriff's Office, newly appointed Precinct Commander
for the Spokane Valley Police Department, and said that he has worked for the Sherff's Office for about
seventeen years and has been promoted through the majority of the ranks; and said he appreciates having
him as the Precinct Commander. Council welcomed and greeted Commander Lyons.
1. Spokane Valley Arts Council Update — Dr. James Harken
Dr. Harken extended greetings from the Arts Council and gave a brief history of the formation of the
Spokane Valley Arts Council; he said their council incorporated as a 5010 within three or four months
of this City's incorporation; they began as a group of seven people interested in the arts, they met in
homes for a few months and discussed ways to bring the arts to this area. He explained that the group
initially met at the Chamber of Commerce office, then eventually formed its by -laws and articles of
incorporation; he said that Norma Ventrus was of great assistance in that regard; and once the Council
was formed, Valleyfest innovator Peggy Doering asked them about including arts in the Valleyfest. Dr.
Harken said he has many art contacts in the area and throughout the nation, and within a short time put
together an arts show and actually turned a profit the first year; he said they refined their system over the
years and turned a profit each year; and that one of the results is the "Walking the Line" sculpture next to
Discovery Place, and he acknowledged the assistance also of then Parks and Recreation Director Mike
Jackson as well as current Parks and Recreation Director Mike Stone. Dr. Harken said they were asked to
fill the showcases at CenterPlace, and did so with the involvement of the schools, local artists, community
colleges, and with items from Dr. Harken's collection, which he said were not for sale. He said the entire
exhibit changes every three months and that over the years, they have never had the same piece exhibited
twice. Dr. Harken said they now have a new sculpture entitled "Harvest Time on the Big Missouri" which
is also called "Berry Picker" and "The Berry Girl" by artist Nancy McLaughlin. Dr. Harken said the artist
passed away in 1985, but with the family's permission, Dr. Harken purchased the copyright and received
approval to have an eight -foot version of the statute completed, and to have several twelve -inch versions
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made, each selling for $1575, complete with plates and numbers, to use those funds to help pay for the
large sculpture. Dr. Harken said they are working with schools and talking about putting "teachers in
residence" as school art departments have been deleted over the years; he said they are still in the talking
stage and he will keep council posted; and he mentioned the Arts Council supports all the arts, including
the local annual dance fest. Several councilmembers remarked on the great works of art in CenterPlace,
and of the wonderful sculpture planned and already in place in CenterPlace; and Dr. Harken was thanked
for his and his Council's work and dedication to the arts.
2. Collaborative Planning, Boundary Review Board — Susan Winchell Brett Sheckler
Boundary Review Board Director Susan Winchell and Berk & Associates Consultant Brett Sheckler
discussed the December 2009 "Collaborative Planning Implementation in Spokane County's Metro Urban
Growth Area" (UGA) report; Ms. Winchell said they also briefly met with the Mayor this morning; she
said that the Boundary Review Board (BRB) handled city annexations; that they eventually were awarded
a grant connected with cities interested in influencing land use within the UGA, and that cities wanted
influence so when developments occurred in adjacent boundaries, cities would be contacted; she said the
County didn't want to relinquish some areas to cities until they could get on a stronger financial footing.
She said during the summer of 2008, they met with various Councils and Planning Commissions and
different ideas were proposed for development regulations; she said the County directed their staff to
make changes like eliminating private roads adjacent to cities thereby increasing the relationship between
the subdivision and the roads between the County and the cities, and making the County more in line with
what cities had, and giving cities earlier notice about upcoming developments.
Mr. Sheckler then went through his PowerPoint presentation, and explained that they are looking for
"win -win" solutions to local and regional challenges; he said most counties are under severe stress by two
interwoven challenges: heavy reliance on property taxes with an eroding revenue stream, and city
annexations which work against the county's financial interest; he said Spokane Valley and Liberty Lake
incorporations put Spokane County in an unprecedented position, and he said given these challenges, it is
not surprising to see interjurisdictional friction, thus the need for collaborative planning. He explained
about the goals of collaborative planning to give cities mechanisms to influence development in adjacent
UGAs, and to provide the County with a fiscally sustainable service delivery/revenue structure. He spoke
of Spokane County's main source of regional revenues eroding, he asked what are the revenue options,
and what direction does the County want to pursue, adding that cities have decisions about how and under
what circumstances they will play a role in assisting the County to achieve a stronger fiscal footing. Mr.
Sheckler said the next phase includes exploration of revenue /service options; and to hold a series of
meetings with stakeholders to discuss the various options, to draft a white paper outlining the issues and
options, and then final presentation of alternatives; and said his goal is to engage with policy makers and
pull together a strategy which will be acceptable to all. Mayor Towey acknowledged and welcomed
Commissioner Todd Mielke to the meeting. Ms. Winchell said the next steps are to build development
strategies for fiscal sustainability for the County, and said cities will be involved and be part of the
solution; that they will need a technical investigation of the options and will talk with cities about ideas
and processes and goals in developing such a strategy; then the idea is to come up with something
everyone can agree with, which process she said will necessitate many meetings. Mr. Sheckler said the
first steps are to make sure cities weigh -in and come to some level of comfort on what cities believe is in
the best interests of the County as a region; and said possibly to seek a new taxing effort for the County
like a utility taxing authority for the unincorporated area, and said that idea has had some traction in
Olympia but has not passed yet; and said it is possible to have a county and City joint effort to push that
forward to give the county some tools to start to tackle the issue of local services.
3. Snow Operations/Maintenance Facility — Neil Kersten
Public Works Director Kersten said that this past winter was one of the lowest snow years ever, and said
that this topic was discussed at the February retreat concerning options on how to proceed. Mr. Kersten
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explained the three options briefly, said that Council had indicated a preference to pursue option #1, and
that now he would like to discuss that option in greater detail; and to determine if there is consensus
afterwards to move ahead; adding that although this would come under the authority of the city manager,
because of the complexities of the issue, he said he would bring this back for final council approval.
Mr. Kersten explained that option one is to continue with the current plan with minor changes; to hire one
additional full -time mechanic /operator; monitor future years to see if additional full -time or part- -time
staff are needed, to purchase the Waste Management facility currently leased to us, and to purchase one
additional surplus WSDOT (Washington State Department of Transportation) truck/plow /sander and one
new truck/plow /sander in 2010. Concerning the contractor, Mr. Kersten said he plans to get that contract
in early fall and said he has the funds available for this effort, and said that developing a request for
proposals for the operations contract is a three to four month process. Regarding the currently leased
Waste Management property, Mr. Kersten said the size is 1.6 acres and zoned Corridor Mixed Use; it
contains an employee office with a break room and storage area of over 2,400 square feet; he said it
includes a break room and lockers, was built in 1955 and is in fair condition. Mr. Kersten said the shop
building is over 2,400 square feet, was built in 1972 and is in poor condition and will need some repair in
the near future; it has three large bays to handle the snow plow trucks, but has holes in the siding and
about 50% of the installation has fallen off the walls; the mechanical system is marginal but said he does
not see it as a large effort to bring it up to standards; and said Council may want to consider exempting
that facility from the city zoning requirements in order to give the freedom to do what is needed for a
maintenance operation; he said this is a very unique operation and he showed a map of the area. Mr.
Kersten said the appraised value of the lot is $530,000, that it was appraised last summer and the
appraiser feels the value will not change significantly; and Mr. Kersten said the site will be used for street
maintenance and stormwater, so each fund could pay for half of the expense, and said there are adequate
funds to handle that.
Mr. Kersten discussed hiring one full -time mechanic /operator, said that the new position would be jointly
funded by the Street and Stormwater Funds; and said the stormwater program needs additional help for
sweeping and vactoring work during the summer; and that the private snow operations contract could be
reduced to reflect the increase in cost for the position during the winter months. Mr. Kersten also
discussed the purchase of one new truck/plow. /sander at an estimated cost of $200,000; and the purchase
of one new loader /backhoe, which would be used for loading deicer in the winter and storm water work in
the summer at an approximate purchase cost of $90,000; and said with the low snow year, there should be
sufficient funds to purchase that equipment within the approved 2010 budget. Mr. Kersten explained
about his current staff structure of two: one for stormwater and one for streets; and said there is a lot of
work to keep another person busy to manage sweeping and repairs. He further explained that he would
like to begin the process to purchase the new truck, as even with the light snow last winter, trucks break
down and blades brake or other systems become a problem and if we have a harsh winter, it will be even
more critical; and said there are funds available to make these purchases without use of the reserves;
adding that it will take some time to purchase and if council concurs, he would like to move ahead.
Discussion included the suggestion to have councilmembers tour the current facility, and Mr. Kersten said
councilmembers can contact him to make those arrangements. The current lease was also discussed and
Mr. Kersten explained that the lease is a monthly lease; that the owners would not give us the option to
buy and said they were not excited to rent the facility as they prefer to sell it; and it is currently on the
market for sale; and if the property sold, they would give us ninety day's notice to vacate. Mr. Kersten
said if he were looking around the area for a site to purchase, this would not be the ideal site, but said the
size is adequate, and the location is optimal as it is in the middle of the city, which makes it more efficient
when it comes to trucks coming back to refuel and add ice slicer, as opposed to driving another twenty or
thirty minutes to the industrial area or the north side of town; and said the site also has great access to
Sprague and Pines, and said we won't find another site in the city center, and said the price is a good
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price as well. [ Editor's Note: After this meeting, Public Works Director Kersten checked the lease and
discovered it contains a 12 -month notice of termination by either party with an end date of the lease no
later than September 8, 2012. J Deputy Mayor Schimmels said he could agree with most everything, and
said the purchase of the building is very important, and would concur on the zoning point and move
forward. Mr. Kersten said he feels we could get a firm price with Waste Management, and that he can get
more details on the zoning, adding that he felt it would not be critical for self - exemption now concerning
the zoning, but would be something to consider in the future. Councilmember Grafos suggested Mr.
Kersten look at the larger Waste Management office property closer to Pines as that could accommodate
more staff; and Mr. Kersten explained that the proposed site could handle fifteen to twenty people and
that would be for the truck operators, etc., as the stormwater engineers' offices are located on the third
floor of City Hall and they would not move, so there would not be a need for greater office space.
Councilmember Grafos said he is not in favor of jumping into a purchase at this time, and said that
proposed site is into residential and he has a problem with putting that site in the middle of that and he
asked Mr. Kersten if we had ever had any violations of storing chemicals, and Mr. Kersten replied that we
adhere to the regulations and have had no violations. Councilmember Grassel agreed with Mr. Grafos'
concern to purchase, and said perhaps we could get a commercial realtor to look for a couple weeks or
months to see if there are other possibilities so Council can confirm with taxpayers that we examined all
the options; and she said that sometimes there are greater savings in purchasing something new versus
purchasing an existing building. Mr. Jackson said staff can develop a plan to expand the search and
meanwhile keep an eye on this building; and Mr. Kersten confirmed that they did some searching, but not
extensively, and can initiate that work. Councilmember Dempsey expressed concern with sitting back and
looking around, particularly when this property "fell into our lap at a time of desperate need" and said
there is always the possibility of losing that property if we wait too long. Mr. Kersten said staff can
discuss price with waste management and pursue that option simultaneously with getting a commercial
realtor to research other possibilities; and Council concurred. Mayor Towey said he realizes timing is
critical but if we can study other options, he has no objections. Councilmember Grafos reiterated that he
is not in favor of jumping into this and said there is a lot of available property around and suggested
looking at other properties for lease; and he suggested staff look at preparing an RFP (request for
proposal) to see what we could get from local contractors. Mr. Kersten said it takes quite some time to
prepare the RFP and if this moves us back too far into the calendar year, we may have to continue the
emergency contract with Poe through next winter; he said decisions don't have to be made tonight, but a
decision to move ahead lets him start to develop an RFP, adding that this is a life safety issue when it
snows; and said he can start on the RFP and get Council approval prior to advertising. There was no
Council objection.
Regarding hiring the mechanic /operator, Mr. Kersten said he would like to hire late in the fall, and Mr.
Jackson added that we currently do not have such position classification and that would require staff to
come back to Council with a job description; and if Council concurs, Human Resources can start working
on that job description. There was no objection from Council. Regarding purchasing one new truck, Mr.
Kersten explained that he would need to contact WSDOT now in order to determine the time for buying
and deliver so that such could be ready by the end of October; and asked if he could proceed forward and
bring that back for approval of the actual purchase. Council concurred. Mr. Kersten said our current
trucks could last another four or five years and he would like to start to replace one truck about every
other year; and he asked about the purchase of the backhoe /loader. Deputy Mayor Schimmels said he
hates to see more equipment and more employees, but if we need something, we can either rent or buy;
and with the stormwater situation, we could get ten to fifteen years from a backhoe, and said he has no
objection and recommends moving forward with that purchase. Mr. Kersten said that although that is
within the purchasing authority of the City Manager, he will bring that back for council approval.
Mayor Towey called for a brief recess at 7:38 p.m. and reconvened the meeting at 7:48 p.m.
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4. Commute Trip Reduction (CTR) Plan — Morgan Koudelka
Senior Administrative Analyst Koudelka and Transportation Manager Ms. Aurora Crooks of Spokane
County's CTR Office, gave an update on the Commute Trip Reduction Plan; Mr. Koudelka explained that
under the CTR Efficiency Act, entities are required to develop a new CTR plan and establish program
goals and targets for their jurisdictions; and that the plan must be consistent with the entity's
Comprehensive Plan, although it does not require a Comp Plan amendment; that the process for this Plan
is to present the information to Council, then it will be taken to the SRTC (Spokane Regional
Transportation Committee) and the State CTR Board, and after both approve the plan, then a model
ordinance is developed and distributed to the various jurisdictions; and he said a summary of that plan
was previously presented and that he and Ms. Crooks are working with legal assistance to provide some
additional language. Ms. Crooks thanked Mr. Koudelka for his work; she explained that the 2006
Efficient Act moves slowly as it takes time and effort to move something like this state -wide; she
mentioned that she has been appointed to the Governor's State CTR Board so she can bring information
to member jurisdictions and keep them informed of challenges; she explained that Spokane County
passed an ordinance last April; that this is a big process and is a collaborative process, and she explained
that Spokane County's ordinance looks much the same as the model ordinance; and the goal is to have
jurisdictions mirror each other in order to make the plan consistent. Ms,. Crooks said that CTR is here to
give people choices, and employers see that it benefits companies and employees; that the plan is
mandatory and there are penalties for those who do not implement a plan; that there are seventeen
employers in the area and a baseline measurement against goals was conducted in 2007 and will be done
again two to three years later, and said that April 2011 will be a goal attainment year to work for that 13%
reduction of drive -alone trips. Ms. Crooks said the success of the entities is measured by the information
gained in the survey, which is conducted by the Department of Transportation; the survey contains eleven
questions about employees' work hours and commutes, like driving one way, etc., and the measurement is
taken again two years later. Ms. Crooks also stated that they work collaboratively with STA (Spokane
Transit Authority), and that although Spokane Valley has less than the required 100 full time employees,
Spokane Valley is a participant; and said Spokane Valley is compliant and has made some progress; that
Chris Thompson is Spokane Valley's Employee Transportation Coordinator and is doing a wonderful job
and they work closely to promote the programs; and one of the issues in Spokane Valley's favor is in
examining the compressed work week schedule. In closing, Ms. Crooks mentioned that the Davenport
Hotel has donated the use of one of their major rooms for this year's "Way to Go" awards, which last
year's function was attended by approximately 250 people, including Mayors, Councilmembers, and State
Representatives and said this is a great opportunity to reward and recognize employers.
5. Transportation Benefit District (TBD) — Cary Driskell
Deputy City Attorney Driskell went through his PowerPoint giving further information on the topic of
Transportation Benefit Districts by explaining such a district would be a quasi- municipal corporation,
would be an independent taxing district, and can be formed by a city, a county, or combination via an
interlocal agreement; and said that new legislation (Senate Bill 6774) would allow a third type of board
comprised of members of the local metropolitan planning (MPO), which for us is the SRTC, and under
that scenario, we would have one member. Mr. Driskell said that the process includes holding a public
hearing, followed by adoption of an ordinance which would include a description of the district's
boundary, a statement that it is in the public interest, description of the improvements to be done, and a
statement of proposed taxes, fees, or charges to impose. Further, Mr. Driskell explained that once
formed, should a major change be proposed, it would require another public hearing if the anticipated cost
would exceed the original cost by more than 20 %; he explained the selection criteria for projects, and that
TBD funds can be used for capital projects or programs including maintenance or preservation of existing
street system, but must be identified in the Metropolitan Transportation Plan. Concerning funding
options with voter approval, Mr. Driskell said once a fee or tax is set by voters, it cannot be increased
without additional voter approval; and he mentioned the option of a vehicle tab fee has a maximum
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annual amount of $100, and that those funds are not available for use until six months after approval of
the TBD; and said if the tab fee exceeds $20 for multi jurisdictional district, 60% of the cities
representing 75% of the incorporated population must approve it; and said that the City of Spokane
Valley represents 27.1% of the incorporated population. For funding options without voter approval, Mr.
Driskell said the two options include an annual car tab fee up to $20.00, or transportation impact fees on
commercial and industrial buildings, excluding residential buildings. It was confirmed by Commissioner
Mielke that these funds could only be used locally for local projects; and there was some discussion
concerning a draft interlocal, but Mr. Driskell said tonight's discussion is not on the interlocal as he feels
that needs to be discussed separately.
Councilmember Grassel said she realizes that it is government's role to provide public safety and
infrastructure, and asked why property taxes and gas taxes do not appear to cover the basics.
Commissioner Mielke explained that except for the last year and a half, inflation has climbed 30 -40% for
commodities like asphalt and concrete, and property taxes cannot increase more than 1% per year, which
means anything beyond that 1% inflation has to be absorbed with existing revenues; he said cities and
counties have different budgeting process; that the County has a general property tax and a dedicated
funding source called a road fund which includes the gas tax from the state, and said it doesn't compete
with anything else which lends to pressure to keep up with inflation and pave all those non -paved roads;
and that cities have one line item for property tax and competition for that revenue is from all different
angles: from patching a road and fixing a pothole, to funding a special detective; and said that government
usually runs out of money accomplishing those two things of providing infrastructure and keeping people
safe.
6. Comprehensive Plan Update — Greg McCormick
Planning Manager McCormick explained that the Growth Management Act allows local jurisdictions to
update comprehensive plans no more than once a year; that council previously heard a report on the
proposed amendments, and those items are set for a first and second ordinance reading this month; he said
the cut -off date for amendments in 2011 is this November 1 and said staff typically advertises that on a
board -based community -wide level to let people know about the deadline; and said staff also runs a
couple campaigns in August and September; and he added that the review of the Sprague /Appleway
Revitalization Plan is also scheduled on that docket; and said any additional amendments that Council
wishes to include in the 2011 update must be included in the docket prior to the November 1 deadline.
There were no suggested additions from Council.
7. Advance Agenda — Mayor Towey
Deputy Mayor Schimmels reminded councilmembers to keep Administrative Assistant Sue Passmore
informed of all meetings and events that Councilmembers plan to attend, so that staff can publish notice
when needed to keep in line with the Open Public Meeting Act; and Mayor Towey also mentioned the
importance of councilmembers keeping staff notified in that regard. Councilmember Dempsey thanked
Public Information Officer Branch for her work on the "Hot Topics" newsletter and said the information
is appreciated. Mayor Towey said that Governmental Affairs Consultant Taylor has contacted Mr.
Jackson and asked about giving a presentation on the current Olympia legislative session and perhaps on
upcoming legislation as well, and he asked for Council comments concerning adding that to the advance
agenda. There was no objection. Councilmember Grassel asked about the shoreline master plan report
and mentioned that the consultant we are using works very closely with the Department of Energy, and
she asked about getting a second opinion from another consultant or have another outsider review that.
Mr. Jackson said he will explore that with staff and report back to council, and that it is not included in
the current plan's cost. Council also concurred with Mr. Jackson's suggestion of having the TBD set for
a future agenda, as well as collaborative planning as per the Boundary Review Board report.
8. City Manager Recruitment: This item was for information only and was not reported or discussed.
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9. Council Check -in — Mayor Towey
Mayor Towey reported on the results thus far for the return of Census information; that the national return
average is 62 %, and both the City of Spokane and the City of Spokane Valley have a 66% return rate.
10. Ci , Manager Comments — Mike Jackson City Manager Jackson mentioned that Spokane Valley
applied for FEMA funds as a result of the 2008 and 2009 snowstorms, and reported that we were
reimbursed a total of $92,155 from FEMA for some damage done to CenterPlace and to the Valley
Precinct.
It was moved by Deputy Mayor Schimmels, seconded and unanimously agreed to excuse Councilmembers
Gothmann and McCaslin from tonight's meeting.
EXECUTIVE SESSION It was moved by Deputy Mayor Schimmels, seconded and unanimously agreed
to adjourn into Executive Session for approximately thirty minutes to discuss pending litigation and
property acquisition, and that no action is anticipated thereafter. Council adjourned into executive
session at approximately 8:59 p.m. At 9:26 p.m., Mayor Towey declared Council out of Executive
Session; and it was then moved by Deputy Mayor Schimmels, seconded and unanimously agreed to
adjourn. The meeting adjourned at 9:26 p.m.
A'
�I /;" r /
Bainbridge, City Clerk
Thomas E. Towey, Mayor
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Approved by Council: 04 -27 -2010