2011, 05-31 Study Session Minutes MIlVUTES
SPOKANE VALLEY CTCY COUNCII.
REGULAR MEETING
STIJDY SESSION FORMAT
Spokane Valley City Hall Council Chambera
Spokane Valley, Washington
May 31, 2011 6:00 p.m.
A@endance:
Councilmembers Staff
Tom Towey, Mayor Mike Jackson, City Manager
Gary Schimmels, Deputy Mayor Cary Driskell, Ac[ing CiTy Attomey
Bill Gothmann, Councilmember Ken Thompsoq Finance Director
Dean Grafos, Councilmember Neil Kersten, Public Works Director
Brenda Grassel, Councilmember Kathy McClung CommuniTy Dev Direc[or
Chuck Hafner, Councilmember Mike S[one, Parks & Rec Director
Ame Woodard, Councilmember Mary May, Engineering Tech
Rick VanLeuveq Police Chief
Mike Basinger, Senior Planner
Carolbelle Branc6, Public Informa[ion O�cer
Chris Bainbridge, City Clerk
Mayor Towey called the meeting [o order a[ 6:00 p.m.
ACTION ITEMS:
1. Avista Energy Grant — Maiv Mav
I[ was moved by Deputy Mayor Schimmels and seconded eo approve the proposed increase in EECBG
subsidy per home audit, from $138 per homeowner to $/87 per homeowner lhere6y reducing fhe
homeowner's ouFOf-pocke[ cost from $99.00 to $50.00. Ms. May explained [hat when this item wes
presen[ed to council last week, s[aff was asked to return with a summary of some of the other projects
authorized by the grant, and to give an update of those projects, which she explained. After brief
discussion conceming some of the lis[ed pmjects, Avis[a Program Manager Jce Brabeck said tha[ [his
audit provides an energy plan for the homeowner to help them determine where to start on energy
savings, and he men[ioned Avista has a low interest loan program through Numerica Credit Unioa Ms.
May stated tha[ we have until Oc[ober 2012 [o finish the grant end if all the funds aze not spent, they
could flow elsewhere. Mayor Towey invi[eA public commen[; no comments were offered. Yote by
acclamation: /n Fwor.� Unanimous. Opposed: None. Motion carried.
NON-ACTION 1TEMS:
2. Fire Deoar[ment Canine. Mako — Rick Freier. Assis[an[ Fire Marshall
Assistan[ Fire Marshall Rick Freier [hanked Council for having him and Mako here; he explained [hat
Mako was bom in Michigan and that this projec[ is a result of a grant from State Farm Insurance, which
has been providing these gran[s since 1992, and said [here are about 250 dogs tivoughout the country and
in Canada. Fire Marshall Freier said that it is Makds job to find accelerants, such as rubbing alcohol or
gasoline; [ha[ the dog likes wha[ he dces; he is a food reward animal so he only eats when M1e works; and
when he find something he sits. Marshall Freier said the dog is [wo years old now and he has had him
since Sep[ember, and that the dog has to work for five years to fulfill the gant obligatioq but tAere is no
limit to how long he can work. With the assistance of several University High School sNdents, Marshall
Freier gave a demonstra[ion of Mako's abilities in seeking ou[ accelerants. Council thanked Marshall
Freier and Mako for coming and for the infortna[ive demonstra[ion.
Council SWdy Session Minums May 31, 2011 Page 1 of5
Approved by Council: lune 14, 2011
3a EWO Reeional Services Presentation� "M analvsis of Reeional Government and Refom�s° — Kevin
Pirch. Ph.D.
Dr. Pirch explained that he was asked to look at regionalism in the United States and how regional
govemance can occur. He said that often regionali�ation is with a city and a county, but said thero are
other ways m look at governing; he said we live in a federal system and there is no "one-size fits alP' for
regionalism; and said that they found that success generally comes when communities find ways m deal
wi[h regional issues speci£c to them. Dr. Pirch said that city-county consolida[ion is usually a
consolidation with a large city and the unincorporated areas within the CounTy; it can be accomplished by
a ballot issue, or [hrough annwca[ion; and said based on our demographics, our chance of a successful
ballot is about one in three; he said places where this normally succeeds are unique and are more likely in
Ihe southeas[ part of the United S[ates, and are very small municipalities with highly dense population
areas. He explained [hat resul[s are mixed on what occurs after consolidation as studies show not a b[
changed, [ax rates are no[ lowered, level of services usually decreases, and large pocket5 of poverty still
remain. Dc Pirch said ano[her way to address this issue is by creating another form or layer of
govemmen[, much like Portland did when the METRO was created to handle regional issues like
[ransporta[ion including planning transporta[ion such as building highways; and said there are s[ill o[hers
who form a regional govemment with some entities handling issues like transportation, garbage, and
sani[ation; and other entities handling culNral ameni[ies, conven[ion centers, and pazks and recreation.
Another way to handle regionalism, he said, would be to create a special purpose govemment, which is an
entirely new govemment entity wi[h one specific function, and one which can cross o[her jurisdictional
boundaries, much like a school distric[ or a wa[er district wi[h specific taYing au[horiTy; and said [he
advantages of such a special purpose disVic[ or govemmen[ is you have experts run it; and he said [hey
have found in [hese siNations, they often times ge[ captured by special interest groups. He said many
voters dodt pay attention to [hese special governmen[s, which means the average voter is disin[eres[ed
and often [imes dcesdt vote. Dr. Pirch also men[ioned the use of interlocal agreements among
governments, or to trade services where one entity does roads and libraries for example; and said the
en[ering into conhacts with private companies where you pay for services is becoming increasingly
attrac[ive. A final example, he explained is [ha[ some govemment actors sit down and work [oge[her
wi[hou[ [M1e need for contrac[s; they simply work it out be[ween them and [hus build relationships behveen
the govemment actors.
36 EWU Re¢ional Services Presentation� "Municioal Economies of Scale &. Scoce and Posb
Consolidation Economic Perfortnance� A Li[era[ure Review" — Grant Forsy[h, Ph.D.
As a means of introduc[ion, Dc Forsy[h actually spoke first and explained that he examined [he economic
side of consolidation, while Dr. Pirch looked a[ the political wndi[ions of consolidation; and said [he
original idea came from [he Board of County Commissioners and the CiTy of Spokane as they were
looking for ways to save money and keep the same level of service; edding [hat [hese sNdies were funded
by the PresidenYs Oftice of Eastem Washington UniversiTy.
Dr. Forsy[h said his part was to examine the question, do larger units have lower costs per citizen per
capital than smaller cities. He said mos[ of his research focused on fire, police and wasce managemenq
and said if the larger group of citizens have [heir cos[s IowereA, than [hat favors consolidation. He
explained tha[ counties and cities that did consolida[e were asked if their economic performance was
improved, and ffie result was that larger cities have cos[ advan[ages and when consolidated, the economic
perFormance was not improved. He said [ha[ fhey examined the services of fire, police, and was[e
managemen[ and also looked a[ libraries and court systems. He said that mos[ studies, if [aken as a whole,
could not show consistently that larger cities have cost advantages over smaller cities, which he said
undermines [he argumen[ that consolidation would lead to lower cos[s per ci[iun serviced. In cities larger
than 20,000 ci[izens, he said the wst advantages [end [o dissipate and said these economies of scale migh[
exist, but you have intemal capNre; which he explained means that you can't find the cost savings
because they are simply re-dis[ributed as new programs or in pay raises; so a problem of consolidation is
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Approved by Council: lune 14, 2011
capturing savings before those are captured internally by govemment. He explained that also there has [o
be control for other variables, such as income and population densiTy; that it was thougtrt that densiTy
would lower cos[, but he said these studies indicate density is complicated, and [hat increased density
res�lts in increased congestion, which means fire and police services would not be able to be delivered at
cost Dc Forsyth said regarding income, if there are rivo identical communities except one is more
wealthier than the other, that the higher income communiTy typically have higher wsts per capi[al; and he
explained [hat u people's income rises, people wan[ more and higher qualiTy services; and if you are
successful in raising community income, tk�en a broader range and a higher quality of services are
expec[ed at a higher wst of citizens served; and said that policing needs of larger azeas are quite different
from those of smaller towns; and wha[ you have to consider is, is the level of service wanted or needed,
and he mentioned [here are different policing needs in Cheney than in Spokane.
Conceming a cos[ advan[age and economies of scope, Dr. Forsy[h said that to combine services similar in
nature would probably result in a cost advantagq if, for example, one were [o handle garbege and
recycling instead of splitting those functions; and another would handle fire and emergency, such as
ambulances. He explained tha[ [he issue of whe[her economic grow[h improves after consolidation was
also studied, and he said the studies are clear when looking at counties consolidating tM1at [here is no
improvement to economic grow[h and no evidence that consolidating generated a level of growth
different from [ha[ of pre-wnsolidatioa Further, he explained that conceming tauatioq if social welfare
services between a city and a suburban area were merged, it would often end up with unintendeA [aYation
re-distribution, where one community would be [aced at one rate and another community at a different
ra[e which would equalize the tax services and cause re-0istribution such [ha[ someone ends up paying
more. Councilmember Grafos said tha[ pmbably short term interlocals work best with the idea of
building Wst and unders[anding problems prior to en[ering in[o [hose in[edocals; and Dr. Forsy[h agreed
IM1a[ trust is a big issue. Councilmember Grassel asked about [ransportation and [he idea of [ransportation
benefit dishicts. Dc Forsy[h said only a few studies have looked at transportation; tha[ there seems to be
some advantages to regional organization or cooperation, but all the details of whaYs being proposed
must be considered, and s[udies indicate where [here are large money imestrnents required, [here cen
sometimes be advantages of cooperating. Dr. Pirch said that wnsolidation is a political event and works
better if it is some[hing all involved en[ities wanh, and tha[ generally entities found a way [o work together
due to some kind of crisis, whether economic or otherwise. Mayor Towey [hanked bo[h gentlemen for
their informative discussion.
Mayor Towey called for a recess a[ 7:30 p.m. and reconvened the meeting at 7:43 p.m.
4 Urban Growth Area—Mike Besin¢er
Senior Plancer Buinger went [hrough his PowerPoint presenta[ion to give an update on [he Spokane
County Urban Grow[h Area (UGA) and said [he deadline for [he [en-year UGA review is Novembeq
2011. Mc Basinger explained the UGA review s[eps, and noted the firs[ three steps have been checked
off; and s[aff is working on steps 4 and 5 now; whicM1 is to analyze services and facili[ies, and work on the
model [ransportation impacts, which will be followed by public heazings and [he ultimate adop[ion of [he
UGA; and added Nat step 5, [he model hansportation impacts, is being carried out primarily by Spokane
Regional Transportation Council as [hey work on an analysis to see how this will impact [he
transportation sys[em if any of [he alternatives are played ou[. Mr. Basinger also said [hat public
participation has been ongoing [hroughout this process, and we are on schedule for the November 2011
adoption targe[ date. Mc Basinger explained tha[ the O�ce of Financial Management es[imates the
projec[ed population for 2031; and when the recen[ census came out, it was discovered that preAiction
was a little high for Spokane CounTy, so we would have about 14,000 more people we could
accommodate. After going through the materials and PowerPoin[, Mr. Jackson asked abou[ the pie chart
with the existing UGA, and whether there is any[hing significant about the distribution of potential
population capacity and if a large unincorporated UGA is typical. Mr. Basinger replied he wasd[ sure;
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Approved by Council: ]une 14, 2011
and said the unincorporated UGAs seem to have the most space but are also on the fringe of cities and are
developing slower.
5. Solid Waste Update — Deputy Mayor Schimmels. Councilmember Gothmann
Councilmember Gothmann said that he and DepuTy Mayor Schimmels have been attending the Solid
Wute Task Force meetings and were concemed that group was getting ahead of council; that the purpose
of tAose meetings is [o diswss forming a non-profi[ organi�ation [o dispose o£ solid waste, recycling and
geen waste; and that entiry would be called the Solid Waste Management Alliance; and to arrive at that
poin[ the wmmittee is working on an interlocal ageement, Articles of Incorpora[ion and Bylaws for all
involved entities within the CounTy. Cwncilmember Gothmann further explained tha[ all jurisdic[ions
would have a direc[or on [he Alliance, including cities as small as Latah and as large as Spokane; and said
the membership would include represenffi[ion from [hirteen cities plus the County. In addition,
Councilmember Gothmann explained, super majoriry decisions would require votes of directors
represen[ing 45% of [he [o[al popula[ioq and 60% of [he members; he said small cities are looking for a
"place a[ [he [able" and if we signed an in[edocal for flow control, we would direct all gazbage [o go [o a
certain entiry to contract with someone to dispose of the garbage, for long-hauling or to the Waste-ro-
Energy Planh, or elsewhere; he said recycling and geen waste are required by stete lew; and he mentioned
we wuld wi[hdraw wi[h two year's w[ice; but said [hat presents problems as if one were [o assume an
en[iTy has a ten-year agreemen[, even if we withdrew in two years, [he con[rac[ would still ezist.
Councilmember Gothmann said that Spokane would probably operate their Waste-to-Energy Plant and
Iikely would not shut i[ dowa Councilmember Gothmann said this council needs [o look at the
alternatives, including [he alternative of managing solid waste ourselves; but we would need [o know the
cost for each altemative; he said the target da[e is October 2011 to have an agreemen[ in place, and i[ is
hoped [o have a dreft agreemen[ within [he next few weeks.
Deputy Mayor Schimmels said if we went on our own, i[ would be a large endeavor, and said he feels
there is streng[h in numbers; but that we s[ill dodt know if [he City of Spokene will be invoWed orjust a
vendor and own the was[e-to-energy plant and added that [he Wheelabretor Contract continues [o
genera[e lo[s of discussion; and added [ha[ [here was a movement with the CiTy of Spokane [o raise $18
million [o do some repairs; bu[ they stepped back as [hey dod[ have County support, which has trump
power on decisions; and said the CiTy of Spokane cannot raise the rates on tipping fees or imolve any
further indeb[edness without consen[ from the County. Deputy Mayor Schimmels said our contrac[ as
well as Liberty Lake's contract expires November of this year, and said the conVact would need [o be
extended or we could push for another alterna[ive. City Manager Jackson said the bonds will be paid off
December of [his year which is when the existing contrac[ would [erminate; and said we are waiting for
the draft contrac[ to ex[end our existing services; and when we receive [ha[, staff will bring it forward to
council. Mc Jackson said a requirement in [he proposed agreemen[ is that members would fund
proportional shares of capital improvemen[, bu[ said he has no idea of how much money that might be;
and said there are numerous questions to consider; and that [his is an opportuniTy for [he councils [o
initiate discussioq and give direc[ion; and said some ideas to consider would include wha[ it would take
for us [o do [his on our own; adding [ha[ s[aff has not considered nor researohed [ha[ op[ion. Deputy
Mayor Schimmels again noted that [he County's feels [hat we should no[ go ou[ for a bond issue until
many of [he ques[ions are answered, and much depends on what the City of Spokane does; and said [hey
own hvo transfer s[a[ions, and said the extension of the in[erbcal will solve a bt of problems.
6. Advance Agenda — Mavor Towev
Mayor Towey no[ed [here are only two items on cex[ week's agenda, and said since we have now had
five mee[ings in May, he suggested no[ meeting 7une 7. There were no objections.
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Approved by Council: June 14, 2011
7. Informa[ion Onlv
The Spokane Tri6e of Indians Casino, 2012 Budget Memo, Barker Road Swales, and Community
Development April Monthly Report were for information only and were not reporred or discussed
8. Council Check in — Mavor Towev
Mayor Towey said we have an unusual situa[ion wi[h two new councilmembers, and conceming
committees and appointrnents, he said eiUter he could recommend appointment assignments wi[h council
confirmation, to hold such appointments until the end of this year; or [hat Councilmembers Hafner and
Woodard could go to various mee[ings at the invita[ion of o[her councilmembers, either in addition to
[hose councilmembers, and/or as substiN[es. I[ was determined that Mayor Towey will make [he
appoin[men[s at the June 14 council meeting. Mayor Towey also announced that las[ Thursday, Fire
Chief Thompson was honored as ffie Washington State Fire Chief of the year a[ Ne Fire ChiePs
Conference; and congatulations were eMended [o Chief Thompson.
9. City Manager Chuk-in — Mike Jackson
City Manager Sackson mentioned the upcoming June 14 budget retreat, and the information memo
included in this council packet which describes the parame[ers set with the Finance Committee, which all
council will discuss a[ the retrea[ in a manner similar to that used last year; and said tha[ June 7 is the
[arge[ da[e [o pmvide Council wi[h the 2012 Business Plan and [he dralt budge[ worksheets; and asked
council to keep in mind these are the "worksheets" and everyfhing at [his point is in draft fortn; and the
formal budget will be presented la[er [his year. Mr. Jackson also men[ioned neM Wednesday's Bike and
Pedeshian Master Plan Open House from 530 to 7:00 p.m., and said everyone is imited [o drop in any
time beriveen [hose hours.
There being no further business, it was moved by Deputy Mayor Schimmels, seconded pttd unanimously
agreed !o adjovrn. The meeting adjoumed at 8:36 p.m.
�
A T omas E. Towe , Mayor �
�
firis[ine Bainbr dge, CiTy CIerL
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Approved by Council: ]une 14, 2011