2010, 11-02 Study Session Minutes
MINUTES
SPOKANE VALLEY CITY COUNCIL
REGULAR MEETING
STUDY SESSION FORMAT
Spokane Valley City Hall Council Chambers
Spokane Valley, Washington
November 2, 2010 6:00 p.m.
Attendance:
Councilmembers Staff
Tom Towey, Mayor Mike Jackson, City Manager
Gary Schimmels, Deputy Mayor Cary Driskell, Acting City Attorney
Rose Dempsey, Councilmember Kathy McClung, Community Development Dir.
Bill Gothmann, Councilmember Mike Stone, Parks & Recreation Director
Dean Grafos, Councilmember Rick VanLeuven, Police Chief
Brenda Grassel, Councilmember Scott Kuhta, Planning Manager
Bob McCaslin, Councilmember Neil Kersten, Public Works Director
Micki Harnois, Associate Planner
Greg Bingaman, IT Specialist
Carolbelle Branch, Public Information Officer
Chris Bainbridge, City Clerk
1. Electronic Cigarettes - Krista Panerio, Spokane Regional Health District Specialist
Spokane Regional Health District Health Specialist Krista Panerio, via her PowerPoint, explained the
background on the electronic cigarettes, and passed around two sample cigarettes. Ms. Panerio explained
how the nicotine is purchased in a vile, which usually does not include a label explaining content, and that
the nicotine can be in different concentrations, from low to medium to high; she said the caps are not
child-proof and the product is not FDA approved, despite the advertisement she showed stating otherwise;
she said the e-cig is inhaled so it is not like an NRT (nicotine replacement therapy) patch; and that there is
no federal or state legislation at this point regulating the sale of these products, nor banning their sale to
minors. In response to council question, Acting City Attorney Driskell explained that he and several
municipal attorneys have discussed this topic and are researching what other jurisdictions are doing, and
said that once the federal government gets more involved, the states will likely follow but there is nothing
in place yet; he said they have been working on a draft ordinance and that he could bring that to council in
a few weeks. Councilmember Gothmann noted that the Health Department's resolution encourages
jurisdictions to prohibit the marketing, sale, distribution and use to/of minors, and to facilitate
enforcement of those prohibitions, he suggested this council consider doing likewise. Mayor Towey
agreed and said he feels this jurisdiction should work with other jurisdictions in formulating a draft
ordinance and take the lead of the Health District and follow up on this. Attorney Driskell said he will
keep council informed on when that issue is moving forward as other jurisdictions will need to be
informed in order to have a coordinated effort.
2. Spokane Transit Authority (STA) Update - Susan Meyer/Molly Myers
Spokane Transit Authority Chief Executive Officer Susan Meyer and Director of Planning Karl
Otterstrom gave a presentation on the proposed STA service reductions; they went over their budget
figures and projections, and said that this is the third year that STA has seen a significant reduction in
sales tax revenue, and even if the economy started to recover next year, STA would not return to 2007
sales tax revenue levels until approximately 2016; they explained the timeline of 2011 service reductions
of which routes are proposing to be eliminated, include Medical Lake and Latah and two routes affecting
Council Study Session Minutes, November 2, 2010 Page 1 of 3
Approved by Council: November 9, 2010
Spokane Valley; and said that these proposed changes also affects paratransit riders, adding that a
paratransit boundary is three-fourths of a mile from fixed routes and that riders living in or traveling to
areas affected will be notified of these proposed changes. Mr. Otterstrom mentioned that they are
examining possibilities of consolidating Liberty Lake routes with others and both he and Ms. Meyer said
that opinions matter and they encourage people to give them input by calling or completing an online
survey. Ms. Meyer mentioned that they are meeting with other mayors, councils, citizens, and
representatives from entities such as Eastern State Hospital to try to preserve some of the services of
Medical Lake. In response to question from Mr. Jackson, Ms. Meyer said the service reduction model was
based on assumptions that sales tax will be down in 2011, flat in 2012, grow 2% in 2013 and 3%
thereafter; but that their projections are adjusted each year as needed.
3. Code Text Amendment - Mixed Use (CTA 08-10) - Micki Harnois
Associate Planner Harnois went through the PowerPoint presentation explaining the five issues associated
with the Mixed Use area and the code text amendment proposal (CTA 08-10); that the issues include: (1)
consider options to address the 50% threshold for additions, expansion or reconstruction; (2) adding
existing single-family dwellings as a permitted use; (3) front and side street setbacks where easements
may make the requirement not feasible; (4) consider options for street requirements such as pre-located
streets; and (5) consider options for maximum block size. After Ms. Harnois explained the proposed
language changes, there was council consensus to move forward with a first reading at a future council
meeting.
4. Broadcasting Options - Greg Bin ag man
Via his PowerPoint presentation, Information Technology Specialist Mr. Bingaman explained some of the
options for council consideration concerning broadcasting of council meetings; that option #1 would have
a $36,000 annual re-occurring cost, but the internet voice-on-demand, initially thought to be $9,000
annually, was determined to be $7,700 which is the cost to have the meeting hosted, similar to a cost
when one subscribes to an Internet service; and that option #2 includes $28,000 annually for transferring
the file or DVD, with the same $7,700 hosted video on demand service, and said that Channel 5 indicated
they could replay this on Saturday or Sunday around noon at no charge. In response to questions about
the actual airing of the meeting and that it has been occasionally preempted, Mr. Bingaman said while we
pay Community Minded TV (CMTV) for their recording, we don't have full control over the airing on
channel 14, as that is a public channel, and if our meetings run long, or there are other extenuating
circumstances, our meeting could be preempted or moved; and said he would recommend we get these
types of details included in an amended contract if we continue to use Community Minded Television.
There was other discussion about difficulty in getting the media (DVD) from CMTV late in the week; us
purchasing our own equipment using the PEG funds; problems which could arise if we were to share
Channel 5 with the City of Spokane; having our own "City of Spokane Valley Channel 5" for Spokane
Valley citizens; and showing the meetings and other programming on cable in addition to using the
internet, thereby reaching more of the city population. Mr. Bingaman mentioned the idea of having the
equipment set up in the small conference room next to the main reception area, which would be ample
space and be in close proximity for running wires, and for the person operating the cameras to actually
see into the council chambers. Several councilmembers agreed with us purchasing our own hardware, and
working toward option #2, but to take this one step at a time and per City Manager Jackson's suggestion,
to first have a recommended motion drafted for official council action at a later meeting.
Mayor Towey called for a short recess at 7:54 p.m. During the recess, it was noted that Councilmember
Grassel left the meeting. The meeting was reconvened at 8:10 p.m.
5. Advance Agenda - Mayor Towey
Mayor Towey mentioned he received a letter from STA seeking the Mayor's appointment of a
councilmember to the Public Transportation Improvement Conference, and that since STA needs this
Council Study Session Minutes, November 2, 2010 Page 2 of 3
Approved by Council: November 9, 2010
4
I
information by November 10, it was agreed this will be a mayoral appointment set for next week.
Councilmember Gothmann offered his availability for such appointment. Mayor Towey also asked
Council for their preference in meeting during the week of Thanksgiving, as well as the following week
when three councilmembers will be out of town attending the November 30 National League of Cities
conference in Colorado. Council concurred not to meet November 23 as well as not meet November 30.
6. Information Only
Greater Spokane, Inc. Third Quarter Report was for information only and was not reported or discussed.
7. Council Check In - Mayor Towey
Councilmember Grafos distributed copies of newspaper articles from the Seattle area which discussed a
Burien Town Square project, similar to Riverpark Square, that recently fell into bankruptcy; and said that
town square project was only about eight miles from downtown Seattle, and compared that project also to
the city center project of this city. Mayor Towey said it is recognized that cities are having difficulties
and are discovering that their ten and twenty-year plans are not working out as they had hoped.
Councilmember McCaslin asked if staff know how many of the 281 cities in Washington State are in the
red, and Mr. Jackson said he will see if he can find those figures. Councilmember Gothmann gave some
brief statistics on unemployment figures dropping slightly and other figures dealing with the financial
status of Washington state.
8. City Manager Comments - Mike Jackson.
City Manager Jackson mentioned that an executive session is scheduled and after council reconvenes into
open session, council can decide whether to make a motion.
9. EXECUTIVE SESSION: Pending Litigation [RCW 42.30.110(i)
It was moved by Deputy Mayor Schimmels, seconded and unanimously agreed to adjourn into Executive
Session for approximately ten minutes to discuss pending litigation, and that action would likely be taken
upon return to open session. Council adjourned into executive session at 8:20 p.m. At 8:24 p.m., Mayor
Towey declared Council out of Executive Session. It was then moved by Deputy Mayor Schimmels,
seconded to approve settlement of this matter pursuant to the terms and conditions of the Memorandum of
Agreement in Mediation attached, and authorize the City Manager or designee to execute any necessary
settlement documents. After brief discussion, it was moved by Deputy Mayor Schimmels and seconded to
amend his motion to include the words "settlement of the matter relative to Skyline and Valley Mission
Park. " Mayor Towey invited public comment on the amendment; no comments were offered on the
amendment or the fully amended motion. Council voted unanimously in favor of the amendment. Vote by
Acclamation on the amended motion to "move to approve settlement of the matter relative to Skyline and
Valley Mission Parkpursuant to the terms and conditions of the Memorandum of Agreement in Mediation
attached and authorize the City Manager or designee to execute any necessary settlement documents"
was unanimously in favor. It was then moved by Councilmember Gothmann, seconded and unanimously
agreed to adjourn. The meeting adjourned at 8:30 p.m.
X
Thomas E. Towey Mayor
ATTEST:
Christine Bainbridge, City Clerk
Council Study Session Minutes, November 2, 2010 Page 3 of 3
Approved by Council: November 9, 2010
R i ~/~/mod w I
CITY OF SPOKANE VALLEY
Request for Council Action
i
i
Meeting Date: November 2, 2010 City Manager Sign-off:
I~
Item: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing
❑ information ❑ admin. report ❑ pending legislation
AGENDA ITEM TITLE: Motion - Proposed settlement of dispute - Valley Mission Park
Improvements - Phase I
GOVERNING LEGISLATION: NA
PREVIOUS COUNCIL ACTION TAKEN: NA
BACKGROUND: In 2009, the City hired a contractor, Skyline, to make improvements to Valley
Mission Park. These improvements included upgrades to the playground and replacement of
the picnic shelter. Following substantial completion of the project, Skyline requested payment
on a number of change orders. The City agreed to some initially, but not others, and issued
payment on the undisputed amounts. Skyline filed an arbitration demand, and the parties
agreed to mediate first to see if the dispute could be resolved. The mediation was October 29,
2010, and the parties tentatively agreed to resolve the dispute, pending approval by the City
Council. The settlement amount is $36,000 plus sales tax, for a total of $38,871. The specific
terms of the proposed settlement are more fully set forth in the Memorandum of Agreement in
Mediation dated October 29, 2010.
OPTIONS: Approve proposed settlement; not approve proposed settlement.
RECOMMENDED ACTION OR MOTION: Council Discretion. The Motion would be as follows:
move to approve settlement of this matter pursuant to the terms and conditions of the
Memorandum of Agreement in Mediation attached and authorize the City Manager or designee
to execute any necessary settlement documents."
BUDGET/FINANCIAL IMPACTS: Funds in the amount set forth above will come from the City's
Park Capital Facilities fund, and will not interrupt any current projects.
STAFF CONTACT: Cary Driskell, Acting City Attorney
ATTACHMENTS: Memorandum of Agreement in Mediation dated October 29, 2010.
I,j
MEMORANDUM OF AGREEMENT IN MEDIATION
October 29, 2010
The parties to this mediation, Skyline Contractors, Inc. and City of Spokane Valley, have
reached a settlement agreement in connection with any and all claims of any nature
arising out of the construction project known as Valley Mission Park Improvements-
Phase I. The essential terms of the parties' binding and enforceable settlement agreement,
subject to City Council approval, are:
City of Spokane Valley will pay to Skyline Contractors, Inc. the total amount of $36,000
plus sales tax in full and final settlement of all claims; contract retention will be withheld
from this payment pending completion of close out at which time all retention shall be
released; the City will supply a reasonable reference letter for Skyline which says that
Skyline completed the subject project on time and pursuant to the contract documents;
counsel for the City promise to recommend this settlement to the City Council;
The parties will cooperate with one another in the preparation and signature of any
additional documents necessary to complete this settlement, including a dismissal'of all
pending litigation and/or arbitration with prejudice and without costs (at the time- of j
payment of the settlement funds herein-not retainage), an appropriate mutual release of
all claims, and such other reasonable documents or provisions needed to implement this
agreement;
i
Should any dispute as to the terms of this settlement arise, the mediator-Jim Craven-
will become the final arbitrator of such dispute and his decision shall be binding on the
parties.
i
- a y, Skyline Contractors
e-Sp
Cary 141-iskell, cting City Attorney,
City of Spokane Valley
IB~ ya, Cadi z, Attorney for City of
Spokes e Valley
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g Spokane 1n- union liquidated this year - ropi~~g~.~~~la.~
i +3.5 stltution, the federal Nation- according to NCUA.
j +o.s al Credit Union Administra- they have," Jekel said. ,if
i +0.4 tion (NCUA) made deals Of the 116 credit unions they take in a financially
-0.6 in the state, Jekel said only troubled credit union, they
i -1.0 with two credit unions to
+z.s absorb parts of it: two were below capital re- take in all of. those losses."
i quirements as of June 30:
+1.1 • Numerica Credit Union The Union and Seattle -
+3.9 said The Union was
2.6 +3.9 of Spokane Valley, the the first credit union to fail
based Transportation in the state since 1995: That
+0.3 state's fourth largest, will as- Northwest, which was year Emerald City i +0.1 sume its $11.9 million in de- merged earlier this month Union was closed due tdo in Cre
-0.7 posits and its members. Nu- into Alaska USA.
±i.o menca, which has branches Credit unions hold 19.3 based United Alliance Credit
-0.z in Spokane, has $1 billion in percent of deposits in the Union was closed just two
+0.7 assets and about 84,000 state, Jekel said. The lar e-
-0.6 members., 1 Y g years after opening.
+0.3 y make money from home
-1.8 • Alaska USA Federal mortgages, SanjayBAate 203103 or
+0.7 car loans, lines sbhatt@searrletimesetimes.com
-0.3
+1.7 C
+3.3 < Sold
+0.7
-0.5 Bank of Chicago, invested with ST. And Urban Part-
+0.1 FROM A8 heavily in condo develop- ners concluded that other
-0.4 ment around the coup
duro t1Y efforts to retain ownership
_0:6 KEY BURIEN PROJECT g the real-estate boom, of the complex, such as a
+1.2 only to watch many of those bankruptcy filing, weren't in
+1.1 Foreclosure leads loans default when the mar- anyone's interest, Burton
+2.4 ket collapsed.
~ +3.5 - Said.
-1 4 to new owner The Federal Deposit in-
2.1 Condo prices at Burien
taking over surance Corp. closed Corus Town Square ranged from
-0'1 retail/ and seized its assets in Se
condo complex P- the mid-$200,0003 to the
0a tember 2009. A month later mid-$600,000s when the
i 1 the agency sold a 40 percent complex opened last year.
underdeveloped acres in the interest in Corus' $4.5 bil- Although ST would not
+3.1 central business district,
+3.4 lion real-estate loan portfo- address the question Friday,
+2.9 then acquired the land. lio to ST Residential a con-
The city kept some for a sortium led by Starwood price cuts seem likely if it
new city hall, library and chooses to continue market-
I park -all completed last Connal, of Greenwich, ing the. complex as condos.
option:
Year- and sold the remain- ST's job: manage the 100- con ert the unsold uitto
%
(AL Rrn der to Urban Partners, a firm plus mostly nonperforming rentals, a step ST has taken
FK YTO that specializes in mixed- loans to maximize return for with some other projects.
B -19.59 use, transit-oriented devel- itself and the FDIC.
S 9.23 opment. Several large new condo
1- 11.13 At Burien Town Square, projects in the Seattle area
The project that was fore- Urban Partners said the con- also have made the switch.
9.99 closed Friday was the first of struction-loan agreement
ST's D 13.13 three planned phases of resi- . ST inherited from Corus ef- watched oclosely will
Burien,
8.16 dential development. fectively blocked them from said Martin, the city man-
2 635 It came to market durin
D 13.90 g filling the building. It speci- ager. While the city has no
t 1237 the worst real-estate down- fied asking prices for condos financial stake in the condo
F 13,67 turn in decades, a problem and retail space that are too complex, he said, "it certain-
)6 29.67 that only got worse when it high for today's market, Ur- ly has an impact on how the
12.43 got caught in one of nation's ban Partners officials said community is feeling about
1317 biggest bank failures.
s 8.69 earlier this year, itself."
Burien Town Square's But the developer
construction lender, Corus couldn't reach agreement Ee c Payne. 206-4642231 or
ties Prime@seattletimes.com
YR AGO
5.25 < Costume Liddle and two business
152 While primarily a chil-
9.97 FROM A8 partners. Liddle owns the dren's retailer, this year the
316 business with Dina Atha- company is finding success
HALLOWEEN SPIRIT Jeff, another Lands' End by offering complementary
YR AGO alumna, and Amy Grealish. costumes for the entire fam-
16 Costumes flying off All
.1s three women worked to ily as well, as for family
.37 gether at Nordstrom in Se- Liddle said. pets,
97 shelves this year, attle.
2.43 The owners do some of Chasing Fireflies com-
3.51 shopping baskets - shoes, their own designs and di- Pere n with Buyseasons, but
3.33 forexamnlP nrf;~h
11/03/2010
3
j%alley'
Council meeting
Broadcasting options
Greg Bingaman, IT Specialist
November 2, 2010
Option 1- Continue contract
with Community Minded TV
• Cost - $36,000 annual re-occurring cost
• How - Recorded, Posted edited and create a DVD
• No live Broadcast
• Where Broadcast? - Only on Channel 14, Monday at 6 PM
• Can add Internet replay through a Video On Demand
Service
• Broadcast would air on the Public broadcast channel that
is also subsidized by City of Spokane
1
11/03/2010
Option 1 - Continued
.a
Channel Recorded, None Mon. 7:00 m $36,000 year
14 Post edited,
Produce DVD and
delayed playback
Internet Hosted Video on None After completion $7,7000/year
VOID Demand (VOD) Service of DVD the video
-Video or audio would be
-Close Captioning uploaded to web,
available Replay anytime
Option 2 - City purchases
equipment and contracts labor
• Hardware costs covered by Cable Franchise Fee
• Contact Labor Cost - $600 - $650 per month
• How - Produce final product in real-time using city owned
equipment
• Advantage - Labor and time-to-air savings, no post editing
• Where Broadcast?
• Channel 14 with possible additional replays
• Can add Internet replay through a Video on Demand
Service
• CityChannel 5 on Saturdays and/or Sundays around noon
2
11/03/2010
1011
s.. a
Option 2 - Continued
Channel Transfer file or DVD None: Available after $28,000 year
14 meeting, possibility
of more than one
replay
Internet Hosted Video on None Available after $7,700/year
VOD Demand (VOD) Service uploading meeting, Unlimited
-Video or audio replay anytime storage
,Close Captioning
available
City Transfer file or DVD None Replay on Saturday None
Channel or Sunday around
5 noon
M"~'ffl M-1
4
\\o~` Av
Live Broadcasting
• Internet - Use an Internet Hosting Service
• additional hardware
• Cable - Replace CityChannel 5 with Valley Channel 5
• Fiber Head end build to Comcast and some additional hardware
for content programming, costs would be covered by the PEG
Fee's.
• Ability for Emergency Broadcasts
• Community Bulleting Board
• Additional media outlet for Public Information Officer
• Parks and Recreation Announcements
• No loss of City of Spokane and County Commissioners meetings
3
11/03/2010
z
Option -Continued
Internet Use a Hosted Service $3,600 Live No additional
Live (Start up Fee) cost if using VOID
Cable Replace CityChanne15 Franchise Live 10 Hours
Live with Valley Channel 5 Fees Contracted
Labor (estimate)
4