2011, 06-14 Special Retreat Meeting Minutes MINUTES
SPECIAL RETREAT MEETING
SPOKANE VALLEY CTTY COUNCIL
CenterPlace Second Flooy Room 213
2426 N Discovery Place, Spokane Valley, Washington
June 14, 2011 9:00 a.m.
Attendance:
Councilmembers Statf
Tom Towey, Mayor Mike 7acksoq City Manager
Gary Schimmels, Deputy Mayor Cary Driskell, CiTy Attomey
Bill Gothmann, Councilmember Ken Thompsoq Finance Director (ou[going)
Dean Grafos, Councilmember Mark Calhouq Finance Direc[or (incoming)
Brenda Grassel, Councilmember Mike Stone, Parks end Recreation Director
Chuck Hafner, Councilmember Neil Kersten, Public Works Director
Ame Waodard, Councilmember Ka[hy McClung Community Developmen[ Dir.
Scott Kuhffi, Planning Manager
lohn Hohman, Senior Development Engineer
John Whicehead, Human Resources Manager
MaryKate McGee, Building O�cial
Others Present: Rick VanLeweq Police Chief
Nina Culver, Spokesman Review Morgan Koudelka, Sr. Administrative Analyst
Approxima[ely eight citizens Michelle Rasmusseq Administrative Assis[ant
Carolbelle Branch, Public Information Otficer
Deanna Griffith, Administra[ive Assistan[
Chris Bainbridge, Ciry Clerk
Mayor Towey opened the meeting a[ approximately 9:00 a.m., welcomed everyone to the meeting and
explained that today's process is the firs[ stage of the budget which lays [he foundation for ultima[e
adoption of [he 2012 budge[, and said today is an exchange of ideas and no[ a debate. Mayor Towey
welcomeA new finance Director Mark Calhoun, and wuncil and s[aff introduced themselves.
BUSINESS PLAN OVERVIEW —Mike Jackaon
City Manager Jackson said that [oday is an opportunity for discussion in a relaced environment; that some
[opics will take longer [han others, and he will leave it up [o Council to detertnine how much time to
spend on each topic; and said the inten[ is to finish around 4:00 p.m. Mc Jackson explained that as we
did last year, Department Heads will walk everyone Uvough their budge[; he said ques[ions should be
frcely asked, and said people should feel free [o [ake a quick breek when needed. Mr. Jackson said [hat
[his is our initial budget meeting and he has had previous discussions wi[h the Finance Committee, and in
a council packe[ a few weeks ago, he and Mc Thompson provided a memo on [he budget. Mr. Jackson
directed everyone's attention [o the information on the various whi[eboards; said a bt of this infom�a[ion
is repeti[ive from las[ yeaq that changes can be made throughout [he day; and he discussed [he various
issues on the boards:
Fiseal policiea- Financiel Management
1. maintain basic service levels wi[h reduced resouroes
2. minimiu personcel costs-overhead by continuing to contrac[ for services
3. con[inue the 6-year business plan
4. leverage city Ponds with grant opportunities
5. minimize ciTy debt wi[h "pay as you go philosophy"
Cou�cil Retreat 6-14-2011 Page 1 of 11
Approved by Council: )-12-2011
Fioancial objecHve: msintain minimum generel tund ending iund balauce of 15% thro 2015
Proposed 2012 wmmitmenb:
l. Today's budget worksheets aze based on holding an increase in the general fund to a ma�cimum 1°/a
over the 2011 budget
2. fund new street capital fund program (Fund 311)
Established in 2011 after 2010 books were reconciled
Continue [o se[ aside 40% of ending fund balance exceeding $26 million in each year after books
are reconciled
3. Holding property tac revenues at 2011 level of $10,70Q000 plus wnsWCtion and delinquen[ taxes — so
to[al assessmen[ will not increase; but the ra[e could change
Challenges:
1. Ponding [he stree[ preservation plan to mainffiin ciTy roads
2. funding street capital projects
3. funding parks capi[al projec[s
Mc Iackson said this is a re-prioritization and that i[ looks like we will be able [o match gran[s with
REET Ponds, and that i[ is always a matter of balance as we need [o be flexible in case other opportuni[ies
arise.
Key Issuea For Today's Discussion:
Economic Developmen[ Plan: Mr. Jackson said Ka[hy McClung will talk about this la[er
Shee[ Preserva[ion: Neil Kers[en and Ken Thompson will discuss this
Permit Center Potential Changes: with at least a perception of problems, Mc Jackson said staff will have
some perceptual changes to propose ro see if council wants to pursue that issue
Council Goals: revise, and develop new goals for 2012 to make sure we have funding for [hose goals
Our General Direction
I. continue to contrac[
2. include 2.5°/ COLA for non-union employees. Mr. Jackson said this was discussed las[ year and [his
year [he finance committee agreeA to have [he cost of living increase for all staff.
3. con[inue to set aside funds for building and equipmen[ replacement
4. Calendar year 2012 is not a"�ow[h year" for expendilures or services. Mr. ]ackson said that times are
tough, but the City has been responsible in setting aside funds, which will be needed at some point.
5. Based on a formula ins[ead of one-time albcations:
W hen to use ending fund balance; when to pay it back
6. Le[ the economy take care of the balance of needs such as street preservation ( i.e. 40% of the ending
fund balance greater tLan $26 million equals funds for the stree[ capital fund).
Counci12012 goals
Mr. Jackson said he will wme back to the goals, bu[ he wanted [o poin[ out some [hings in [he business
plan; he explained that the business plan M1elps [o se[ [he budge[, and once the budget is adop[ed we need
[o make sure [he plan conforms to the budge[; he said we are always making changes as the dowment is a
working document Mc Jackson said the program descriptions are loca[ed on page 5, and explained [ha[
we tried [o put brief program descrip[ions [ogether as an overview. Furtheq he explained [hat page 12
includes [he fiscal poliGcs which will evenNally be updated; page 16 shows the financial forecas[ and
program impact summary, and he said this page will not be found in the budget worksheets, but is only
wntained here in the business plan. Page 45, he said, shows the organization chart and that a similar
chart is indudeA for each deparhnent; adding [hat the business plan is a companion document [o [he
budget. Mr. Jackson said Addendum B on page 101 contains [he ciTy's vision s[atemen[; and page 108
lis[s [he council goals for 2011, and said we will discuss major goals for 2012 today, and that ffiis dreR
enables us to provide resources to meet those goals.
Council Re[reaL 614-201 I Poge 2 of 11
Approved by Council: 7-I2-201I
BUDGET WORKSHEET OVERVIEW —Keu Thompson
Finance Direcror Thompson noted hvo replacement pages: the first page in the notebook showing 2011
Operating Budgets: 2012 Operating Budget, and updateA page under Public Works on Ihe street fund,
noting Nat those replacement pages are dated 6/10/11. Mr. 'Thompson explained that tfiis notebook
binder contains the line items of the operating budget, whicfi is all the budgets that operate from the
general fund, and the street and stormwater fund; that the final budget will have other line items, but we
dodt have a lot of say about many things such as path and trail funds, risk management, or debt service,
which are regula[ed by laws.
1 GeueralGovernment—KenThomoson
Mr. Thompson went ovet the pages included under tab 1 in [he notebook binder, explaining Nat we have
a total opera[ing budget of $43,053,000; that general government is the place where items go if no
departmen[ claims them; and he started a[ [he top of the page explaining that in fhe pas[ the contingency
has been as high as $.5 million, bu[ we have never used it and it could be used for such things u covering
excessive snowfall, or [o make up the difference in our reduced state share of funds. Mr. Jackson added
tha[ we like [o view the budget not as a spending plan, but rether as a[ool to anticipa[e whal costs will be;
he said department directors do not spend the Sunds because they aze budgeted, but they spend the
minimum necessary; and he no[ed on page 16 1}�a[ we anGcipate we will spend less than the budgeted
amounT, tha[ the more we try to budget for actual expenses the smaller these numbers might become; that
we could try to budget eacactly and if we have overruns come beck to cwncil, or we could take [he
approach of budge[ing a reasonable amoun[ and depend on the deparhnen[ heads [o spend as little as
possible, which he said is wha[ we have done in the past, adding [hat staff bears a bt of responsibiliTy to
keep spending down.
Councilmember Grafos ques[ioned if [here is too much "blue sky" [endency for department heads to look
at the figures halfivay tivough [he year and maybe find another use for unspent funds, and said the closer
we can estima[e [he items the bettec Councilmember Hafner asked why we consider we'll have $.5
million in surplus, and Mr. Thompson said that over the years we have always been well under tha[
general fund budget amount, that the directors do a good job of putting in the amount they anticipate
needing, and that we usually end up coming in under budget. Councilmember Hafner expressed [hat he
doesd[ feel good about having an access. Mr. Thompson explained [hat over the past years, and
especially in [hose early years, revenues were wming in way above what was anticipated, and
ezpenditures were always under what was budgeted, so we kept gaining funds in the general fund, and
now eight years lateq we dodt have the excess revenues but we are making up the difference on the
expendimre side, and reiterated that depar[ments bring in their actual budgets under what was budgeted,
but that likely wodt go on forever since we getting squeezed.
Mr. Thompson mentioned [he broadcasting of council meetings was moved to the counciPs budget for
2012; [hat for [he ciTy-wide records management, at some point we will need to develop a list of
procedures and policies so all departments handle documents in the same manneq and that those policies
might take place in the curtent year if we have time to get [hat organized. Mc Thompson also noted that
per our lease, city hall ren[ goes up abou[ 3% a year and said we have an estimated [wo years more on the
lease; tha[ the $3Q000 for facility maintenance is [ied to some potential changes in [he permi[ cen[er, [hat
we have budgeted $75,000 for economic development as we know that is a priority for council and
al[hough there is no plan yet, we need funds ro ge[ that started; and he went over the others i[ems listed on
[he general govemmen[ budge[ worksheet Councilmember Grassel asked Mr. Thompson [o explain the
interest transfers, and Mr. Thompson said that is the interest eamings we have on our inveshnents, which
is a small amoun[; and one of the big transfers we made las[ year was to transfer $.5 million finm ciTy
facilities to cover full-wid[h paveback. Councilmember Hafner asked if we are proposing a depuTy city
maneger in this budget, and Mc Jackson said the position is budge[ed, but as he sta[ed in the pas[, he
would wait un[i12012 to ac[ually fill the position.
Cowcil Ae�rcat b-14-2011 Page 3 of l l
Appmved by Council: 7-12-201I
2 Executive and Leeislative Su000rt — Mike Jackson
CiTy Manager Jackson highlighted the most notable changes and said that the category " publications"
includes funds for purchasing publications, [hat [here was $5,000 in 2011, and so far we have spent very
little so the amount was reduced considerably; he said copier maintenance is di�cult to track and we will
focus more on that this year as a change in copier maintenance was a result of a change in depardnents
over the year, he said the city manager's office is in a state of transition and while he doesdt expect to be
able to attend as many conferences as in [he past, he feels $2,000 is sufficient; he said an additional
administrative assis[ant position was moved as we did no[ in[end to £II it because we dod[ have a deputy
city manageq and said he moved the adminis[ra[ive assistant from Ne deputy city manager to [he city
manager; bu[ said if we were to fill the second administrative assistan[, i[ would no[ occur until after mid-
year. Regarding the increase in professional services, Mc Jackson said he foresees [here could be a need
to use a pmfessional firm such as wha[ was used to assist in filling the city attomey and finance direcrors
positions; adding [hat we are conducting [he community development direc[or vacancy in-house and will
do likewise for the depuTy city attorney; he said consul[ants bring a great deal of expertise, and we can'[
predic[ what changes might occur in the organizadon, and said if we dodt need it, we won't spend it;
adding [ha[ our philosophy is [o budget so tha[ we are not using staff or council [ime to repea[edly make
changes for every unforeseen expense [hat migh[ arise. Mc Jackson said this fund wvers the
administra[ive assistant to the ciry manager, the city manageq ciTy clerk, deputy city clerk, and
administrative assistan[ for council. Mr. Jackson also mentioned that as we have time in the Po[ure, we
could combine Ne business plan and [he budget into one document which would have [he added becefi[
of showing which positions are funded in each particular departrnen[.
3. Citv Attornev/I.eeal Su000rt — Carv Driekell
AI[hough actually a par[ of executive support, it was no[ed [ha[ this section is separa[ed for ease in
awareness of those actual costs. City Attorney Driskell said this department M1as been in e state of flux
over [he past year wi[h Mike Connelly's resignation; that he has used more intems this year and is
working [o ge[ an uwrate assessmen[ on ffie full needs; and he no[ed [ha[ Mr. Connelly left in August
which accoun[s in large part for the 2010 wages; tha[ [he workload requires the use of ou[side counsel at
times, and said he an[icipates tha[ going down subs[an[ially but no[ completely as [he workload and
expertise cannot be covered with rivo in-house attomeys; and Mr. Driskell briefly went over the funding
shown on [he blue sheet.
4. Ooerationa and Admiuiatratiou Services—Mike Jeckson
Mr. Jackson brought attention to page 35 of the business plan which shows the organization chart; he said
the deputy city manager and administra[ive assistant are curten[ly unfilled, but he in[ends [o review tha[ in
2012 and develop a proposal to provide the needed resources; he said there are not a bt of changes
overall; [he websi[e support includes soflware licenses and maintenance, and [he $16,000 represen[s [he
actual anticipated cost to maintain the new site and pay those license fees; he said all salaries ere included
in the budget but aze not filled. Regarding the survey, Mc Jackson said that is done every other year but
we keep funds there so we can do additional work if needeA, such as pedortning an economic
development survey. In response to council questioq Mc 7ackson said we are moving away from leasing
copiers and into pumhasing as purchasing has a better value.
The meeting briefly recessed at 10:30 a.m. and rewmened a[ approximately 10:44 a.m.
5. Human Resources—John Whitehead
Mr. Whitehead explained his expenses as showq and said that training is for those sessions tha[ all
employees need and not just for those two employees in human resources. Discussion was held on
[raining and [ravel including men[ion of lowered health care ra[es as a resul[ of our wellness award; [ha[
$6,000 for harassmen[ Vaining is an anticipa[ed need wi[h remarks from Mr. Whi[ehead that he will
Council Retreet 6-14-2011 Page 4 of 11
Approved by Council: 7-12-2011
erzamine those £gures including the $23,000 for havel, training and mileage to see if they can be reduced
and said that there was little staff training conducted in 2010.
6 Finance and Information Technolo¢v R1'1— Keu T6omoson
Mr. Thompson said there are eleven positions in the budget but only ten are cuRently filled; Ihat he will
keep the extra position to allow for the possible fumre need in putting together the annuel financial report;
he said his deparhnen[ hu been busier this year with broadcasting council meetings, and there is a new
order of compu[ers [o set up and sync with the sys[em, and said if IT (Information Teclmology) staff gets
too busy, a[emporary employee will be brought in [o handle [he help desk, which funds are loca[ed under
professional services. Mr. Thompson noted his staff makes a bank deposit daily a[ [hree different banks,
and the anticipa[ed travel reimbursemen[ needs are no[ed; and added that his tivee existing accounfants
were among [hose who did not receive a cost of living increase last year, and now that they are more
experienced, he would no[ be surprised [o lose some employees over the next few years; adding [hat lots
of tumover is a problem as with loss of employees, you also lose that historical experience.
Councilmember Hafner asked why the employee benefi[s were increased, and Mc Thompson said he
would be happy to check on that, and noted that [here were also increases in re[irement, and Labor and
Industries costs; tM1at medical insurance has remained consistent, and Mc Jackson said tha[ employees pay
40% of any cost increase over the original labor agreement.
7 Le¢islative—MikeJacksoo/Council
Mr. Jackson said [hat the employee becefits increased qui[e a bit from 2010 primarily due to health
benefits and that it is unknown if future council will choose en individual or a family plan, and said he
budgeted to have enough in case all new councilmembers desire the medical family plan; [hat as indica[eA
earlier, broadcasting has now moved inro the council budgeT, that travel should no[ have an impact on
councilmembers' abiliTy to attend conferences and Mr. Thompson said as the Mayor and Deputy Mayor
[end to trevel more than other councilmembers, [hey will likely ask o[her councilmembers for cost
transfers. Mr. Jackson also explained the various acronyms under memberships.
Possible 2012 Couucil Goals
The following are the draft goals for 2012:
l. Goal for 201 l: Continue monitoring wastewater issues, including governpnce of wastewaier facili[ies,
and pursuit of [he most efficient and economica! methodr (o ensure the continuation of wastewa[er
discharge licenses. There were no objections finm council to keep [his as a goal for 2012.
2. Solid Waste: it was mentioned Council wants this as a primary goal. Mayor Towey suggested council
begin addressing [he issue of solid was[e either this year or next and that we need [o identify [he issue,
and get more infom�ation so council can examine all the altematives ofjoining the consortium or handing
i[ ourselves, and [he wnsequences of each alterna[ive.
3. Goal for 201 I: Revrsit and Eva[uate regulations specified in the Spragve/Appleway Revifaliza[ion Plan
as adopted and amended 6y City CounciL Councilmember Woodard askeA about the regulations and
codes for development of businesses, and Mr. Jackson suggested perhaps replacing this goal from las[
year with a goal dealing with signage and landscaping regulations. This lead [o discussion abou[
reviewing all [his city's regula[ions and comparing our regulations wi[h those of outlyingjurisdictions to
de[ermine if we are compatible with our surtounding regions; [he idea of having one s[aff person review
all regulations periodically; of [he idea of changing ordinances that are not opera[ing as sta[ed; and
men[ion by Councilmember Grafos that he feels this should be wunciPs number one priority in 2012. It
was de[ermined [he new k3 draft goal would be to review and evaluate developmen! regulations and
compare with surrounding cities. Mr. Jackson added tha[ [he topic of signage and landscaping will be on
an upcoming council agenda.
Council Reheac 6-14Q011 Page 5 of 11
Approved by Council: 7-12-2011
4. Goal for 2011: Develop a Shoreline Master Program to provide appropriate regulatory protection for
warers oJstarewide significance as reguired 6y smte smtute. Communiry Development Director McClung
mentioned they are just now working on goals and policies and the next phase will be the regula[ions, but
those will not be addressed until 2012; end staff anticipates bringing goals and policies to council in the
nex[ few weeks. !t was determined council wrll keep this as a goa! for 1012.
5. Goal for 2011: Pursue a(egislative capital 6udget request for state funding for the acquisition of
pmkland adjacent m ihe Pmk Road Pool. Councilmember Woodard asked where do we come up with
[he money to buy park lands, tha[ we dod[ need [o develop [hem immediately, bu[ perhaps we should
look at buying some land as he sfated land is rela[ively cheap now. Mc Jackson said [ha[ generally
council will fortn five or six goals which will all carry equal weight instead of being priori[ized; that they
are no[ mutually exclusive and if you have park acquisition as a focus, i[ would no[ necessarily be a
priority. Councilmember Hafner asked about road preserva[ion and said we can't allow our roads [o
contince [o deteriora[e. Councilmember Gothmann said tha[ road preservation was not developed prior to
[his as we were working on such things as maintenance, which includes plowing; that the previous
council worked hard ro find additional funds to take care of [ha[ and the 6% utiliTy [ax was one of those
mechanisms [o help fund main[enance; [hat now we can focus on road preserva[ioq [hereby building on
[he previous counciPs work. Mc Jackson explained that such could be pursued as a legisla[ive capital
budge[ request as part of the annual procedure [o prepare a legislative agenda; bu[ could also be a goal if
tha[ is counciPs desire. No definitive s[atemen[ wes made regarding whether [o keep this as a 2012 goal.
6. Goal for 2011: Develop and rmplemen[ a multiyear winfer roads maintenance plmt including
mai(abiliry, costs and effecls ojprivate secfor vendors performing winter ropd maintenance jor the City.
Mr. Jackson stated tl�at we have a plan now and there is no need ro continue with this goal.
7. Goal for 2011: F.splore a range of options for a City Ha1L Mc Jackson asked to keep this as a goal
since our curten[ lease expires in 2013; and Councilmember Gressel suggested perhaps making Ihis a
broader sta[emen[ [o be included under a goal to heve a detailed economic development plan, which
would include a city hall and infrastructure. There were no objections.
The meeting stopped for lunch at 11:40 a.m., and recomened at approximately 1230 p.m.
Prioritization of Capital Projects— Ken Thompson
Finance Direcror Thompson discusseA potential capital projects including projects on the transportation
improvement plan, fundeA projects, projects likely to be funded, and those not funded, adding that some
of these projecu will help with the s[reet preservation issue. As a result of further discussion below, and
assigning "dots" to indicate priorities, the following is the Cwncilmember's prioriti�a[ion of [he projects
lis[ed (red dot is higheet priority, green dot is second priority):
1. TIP planned projects anNor projects currently without funding
2. New prqects
a. Wes[ gateway a[ Thiertnan $12Q000 Vote: 2 green dots
b. Mission Ave Trailhead $ISQ000 Vo[e: 1 red do[
c University Appleway Landscaping $100,000 Vo[e: 1 green dot
(push back barriers, improve the azea's appearance)
d. Park RoadNista Rd Quiet Zone $907,000 Vote: 1 red dot
3. Sheet Preserva[ion
In the 2011 and 2012 budget [ogethey Mr. Thompson said we now have abwt $1.8 million in [hat fund
including [he 40% Vansfer; and said council needs [o detertnine whether [o put in those projec[s; or some
that ared[ worth doing (a-0 above).
4. none, Dod[ spend [hese $.
5. Appleway Landscaping - Park to University Vote: 2 green dots
Council Retreat 6-14-2011 Page 6 of 11
ApProved bY Council: 7.12Q011
6. Sprague Swale Landscaping Vote: 4 red, 1 green
7. Thierman Park Stormwater
Councilmember Grafos said tha[ the list is incomplete as it dces no[ include the Sprague Stormwater
project, and Mr. Thompson said that stormwater funds could be used for thet project Councilmember
Grafos also asked about the Thierman to Park stormwater project of $63Q000, and the Appleway
landscaping $64Q000 project and whether we have funds for those projects. Mr. Thompson responded
[hat probabiy not all funds will be available immediately, but that these projects could be spread out over
[hree years as we work [o find a way [o get them done. Mr. Jackson explained that we always have the
option of not spending [he money, or to wait until an economic development plan is completed before
committing funds; and said the in[en[ of this discussion is [o start to look toward preserva[ioq and spend
[he money at counciPs discre[ioa He said that we could put tha[ in the budget or develop o[her funding
ideas; and said tha[ funding is not susfainable; that we could tap into the s[reet fund and take i[ very close
to zero in [erms of an ending fund balance; bu[ cautioned tha[ it took a while to build up that fund and
[here is mt a large chance tha[ this is an ongoing funding source; but said we have a contingency of
$SOQOOQ and if we have a huge snows[orm, i[ would impac[ the street fund; [ha[ we can'[ repea[ such a
process of deple[ing those funds every year and mus[ be very careful when i[ comes [o spending [he
contingency, and suggested these funds be thought of as a one-time source of funds.
Councilmember Woodazd spoke of the entry into the ciTy and said he felt we could get some assistance
from the ve[eran's goup for a veterans' memorial. Parks and Recreafion Stone responded [hat he me[
wi[h [he ve[erans several times and [hey indicate they have no funding; tha[ [hey'd love [o see some[hing
happening in Uie en[ry location, but Mr. S[one said tha[ location is bordereA by two streets side by side,
making i[ not very conducive to people getting out and visiting in [hat area. Mr. S[one said he ofTered his
assisfance in helping the veterads fake another look a[ an exis[ing park; and said the veteran's group
would love us [o purchase property direc[ly south of this and develop [ha[ into a park; and Mr. Stone
es[imated the purchase of such would be $600,000 [o $700,000; but again sta[ed [ha[ the ve[erans groups
do not have any funding source to assist with any of Nat Further discussion continued concerning some
type of gateway or welcome sign. Other discussion included comment from Councilmember Grafos [hat
he feel s the $907,000 cost for the quiet zone is closer to $75,000, but Mc Jackson said we need to realize
[he full price. Public Works Director Kersten added [ha[ ro go through the entire process, including [he
design process, the cost would range behveen $60Q000 and $900,000. Councilmember Grassel said she
is not ready to vote on priorities as she dcesdt recall the specifics; and Mc T7tompson said the funds
woulddt ac[ually be albcated until or unless council ac[s on tha[ [his fall. Mr. Jackson also men[ioned
that the money could be held in these funds and not spent un[il a decision is made. Deputy Mayor
Schimmels and Councilmember Grafos agreed on a need to move forward, with Councilmember Grafos
commenting that one of the reasons we have no activiTy in the wrtidor is because of the way i[ looks.
Councilmember Woodard asked about [he staNS of the idea of us sharing in wsts wi[h Liberty Lake for a
welcoming sign, and Mr. Jackson said council previously indicated they did not want to pursue that due to
[he high wst. To vo[e for project preference, mos[ councilmembers placed dots next [o projec[s listed
above [o indicate their priority, with red the highest priority, and green [he second highes[ priority. See
above for those results. Mr. Jackson said s[aff will put [ogether a plan and council can make furtM1er
decisions once they have an opportunity W review such a plan.
8. CommuoiN Develoomeut — Kathv McClune
Community Developmen[ Director McClung dishibu[ed copies of an upda[ed organiza[ion chart and said
[hat [he one in [he business plan shows posi[ions cu[ in last year's budget. Director McClung explained
the depar[menYs budget and the breakdown of [he four divisions, including which positions are included
in each divisioa She mentioned the change in the copier maintenance was reduced by $1Q000 ro more
closety reFlect actual costs; said that professional services under development engineering also shows a
Council Retrcet 6-14-2011 Pege 7 of 11
Approved by Council: 7-12-20❑
$20,000 reduction as staff is doing some of the services in-house; and she explained the cortesponding
cosis associated with the shoreline management plan, and the building and code compliance publications.
Conceming an economic development plan, Diroctor McClung said staff has put together some
conceptual ideas, including a draft scope of work, of how to work through the process if Council
determines it wants a plan; she mentioned that an economic development plan could be part of the
Comprehensive Plan but it doesdt have to be, and suggested tLat perhaps council discuss this during a
future study session.
Discussion among council and staff included a suggestion from Councilmember Woodard that perhaps a
brains[orming session would be beneficial and expeditious so [hat development could be realiud
immedia[ely instead of waiting for a year or hvo for some[hing [o actually get done; Councilmember
Grafos staGng that he would like staff to bring all options forward for what is available to help promote
economic development, so council can look a[ those op[ions and determine if there are resources [o
accomplish [hose issues, and perhaps have a consultant come speak [o address the options so council can
target [he ac[iviTy and make priorities. Councilmember Woodard suggested having some kind of relief [o
present to businesses to help [hem expand, and esked about the possibility of reducing regulations or tau
consequences and having some type of private/public partnership; and Councilmember Hafner askeA if
we might have a s[aff person go out and find ou[ what exactly businesses need and why they migh[ be
moving away. Director McClung said we do no[ have a staff person to do that bu[ we do work wi[h
people who come [o us, like in [he e�mple of Ihe Hanson Company, and said we worked out ways [o
make the proposal work. The question of why Marie Calendar's was cbsing came up and Director
McClung indica[ed U�at was a corporate decisioa Councilmember Grafos brought up the issue of the sign
ordinance and of Uie recen[ pas[ issuing of tickets.
Councilmember Go[hmann stated tha[ the difference be[ween govemment and private business is, all
ci[izens pay taces including businesses, whereas in a busicess, companies can make quick decisions
because it woulddt involve all their customers; and said if you want changes, the city needs to provide a
forum so businesses can come in to comment about needs. Mayor Towey agreed and said that needs to be
set up right and that [here are some [hings we can do now, bu[ Council needs [o decide how [o regula[e
and detem�ine the pulse of the business communiry, and that we can't do [hat without business feedback
and Councilmember Grafos asked if we could adjus[ some of the pem�it fees for new businesses, but
Direc[or McClung explained [ha[ we cannot, as that would be a gift of public funds. Ciry Manager
Jackson also said that those cannot be adjusted as it is a souroe of revenue for the ciry; but where we get a
re[um on our invesVnen[ is in Vying to encourage the expansion of living wage jobs, which is more [han
retail business, and said staff spends quite a bit of time helping in that arena, and gave Pyrotech as a
recen[ example; he said we are not standing s[ill and it is not as if no[hing is being done as there are many
success s[ories, such as Car Ma� Harley Davidson, and a new medical faciliTy; he said we also have to be
careful as it is hard to deal with an issue in the middle of a battle, and that you dodt stop even when [he
ewnomies improve as there is always the need [o build a taY base. Council concurred to have staff bring
forward options for further discussion so council can work to determine what the goals and objectives are
[o realize economic development. Mr. ]ackson said [hat perhaps [here are things we can do now, and
added Iha[ perhaps economic development is more of a first priority than road preservation; and said there
are limited resources and the state statutes also limit us on economic incentives; but that staff can bring all
[hose ideas back for further discussion, even with [he possibility of forming a committee once the
problem is defined, so that ideas start moving. Mc Jackson also noted that we can have the full council es
the committee and address this topic at a sludy session; that we need to look at a range of options; and
said that devo[ing resources to influence the economy is a major steq bu[ tha[ as we boos[ [he ewnomy,
we boost revenues. Councilmember Hafner sugges[ed having a list of what council can do; and Mr.
Jackson said if council wants [o provide such things as tac incentives, then council needs to give Iha[
direc[ion and s[aff will take a hard look from the angle of [he law and how i[ might apply; as well as look
for legal ways [o devote ciTy resources to incentives. Councilmembers concurred wi[h [ha[ plan.
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Approved by Council: 7-12-2011
Mayor Towey said he would like to start this as soon as possible, and Mr. Jackson said that signage is
already on the hly 5 council agenda. Councilmember Grassel said things to e�camine are the road biocks
to busicess, like permitting and regulations; that perhaps a brainstorming session could be on short tertn
economic strategies, and said she can think of about twenTy items to discuss to improve Sprague, and
suggested breaking that down into hvo separate items; one for long term and another for short term; and
said she feels council can determine the short tertn strategies in about two hours, then have staff come
back with plans; and that the long term cwld include ciry hall and infraswcture. Other discussion
incl�deA mention from Councilmember Gothmann that a decision cannot be made until the businesses
s[a[e [he problem; comment from Councilmember Grafos [hat the problem is not just on Sprague; and
further comment from Mayor Towey [ha[ something is needed for the entire city. Director McClung
shared [hat within the las[ few weeks for our ciTy, we saw 76,000 square fee[ of new office space; over
SQ000 square feet of re[ail; I 10,000 square feet of warehouse space, and about 208 residential units; and
said [hat s[aff meets behind [he scenes many times to help [he application process, adding tha[ there are
qui[e a few o[her major projec[s coming our direc[ion.
Director McClung also mentioned tha[ she is aware [hat the permit process is a high priority for council
and they have made a bt of process changes, with some Ihings no[ as visible but which s[ill help ezpedite
different Types of applications; [ha[ there has been a bt of training; all s[aff went So cus[omer service
haining, and she met with staff afterwards [o discuss what that training means; that there will always be
ways to impmve, and she men[ioned that a major impediment [o getting the permi[ process is tha[ the
departmen[ is spli[, [hereby limiting more ins[ant communication; and said she feels ttiere would be a
better sense of what is going on if [he managers and direc[ors were no[ separated fmm the pertnit crnter,
and said if council is interested in pursuing the idea, she has thought about having finance trade places
wi[h the permi[ center and create an entry way from the parking lo[ to [he permi[ cencer. City Manager
Iackson said he supports this idea of having the depar[ment closer, but has not looked a[ [he cost and
wanted [o get counciPs general opinion. Council concurred. There was also some discussion abou[ the
acNal pertnit process and [ha[ the depardnen[ has weekly permit meetings to discuss applications. Mr.
Jackson said s[aff will move ahead with the plens to physically consolidate the department.
The mee[ing recessed at 225 and reconvened at 2:40 p.m.
9. Parks end Recreadon - Mike Stone
Direcror Stone wen[ over his six divisions as shown on the business plan on page 69; and diswssed [he
figures shown in the agenda; adding [ha[ his department also manages several contrac[s including the
aquatics con[rac[, parks main[enance, and jani[orial services at Cen[erPlace and for the facilities and
grounds at the police precinct. I[ was noted that the benefits appear to be lower in Parks end recreation,
and since benefi[s went up across the boazd, Mr. Jackson said that finance will [ake a closer look at [hose
figures. Mc S[one said it has been fve years since the Parks and Recreation MasterPlan was developed
so i[ is [ime ro review that as well. Mc Stone mentioned the maintenance con[rect with Senske will
increase in 2012 as Greenacres Park is added to the inventory, and said tha[ normally his departrnent
comes in well below budge[. Mr. S[one remindeA everyone [hat they recover 100% of the cos[ of [heir
recreation programs, and said ffiat Mr. Jackson had made a decision we would not be involved in social
media like Facebook due to cost and oversigh[ issues, and if social media were added, resources would
also need [o be addresseA. Since taking registrations on-line, Mr. Stone said those Fgures are probably up
about 50%. Aqua[ics fees remain at $1.00 per swim, and Mc S[one said Spokane Valley Parh�ers can
dis[ribute free passes for [hose individuals in need, and ssid [ha[ the scholarship pro�am remains a very
popular program; and said that [his program is no[ self-sustaining as aquatics is the highest expense we
have insofar as no[ being able to recover cos[s. Mr. Stone mentioned [he Senior Cen[er hes one highly
capable person as the senior center specialist; [hat that budget is basically s[atus-quo and up slightly only
because of the increase in benefits; and he explained some of the issues contained in the arrangemen[ we
have wi[h [he Senior Cen[er. Further Mc Stone explained [ha[ CenterPlace is open eigh[een hours a day,
seven days a week as they endeavor [o remain open as much as possible to be available [o ci[izens; [hat
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ApprovW by Council: 7-12-20❑
the staff is supplemented with hosts who are temporary seasonal employees who mosHy work evenings
and weekends. Advertising for CenterPlace was also diswssed and Mr. Stone said it is probably time to
upda[e [heir marketing plan, as i[ hasdt been updated in four years. ARer Mr. Stone went over some of
the other figures, Councilmember Grafos said if the marketing plan and the chair replacement for one
year were eliminated, and if [he budge[ were [igh[ened up further he feels more funds could be found
without cutting any other programs; and Mr. Stone said the budget would have been met if Greenacres
Park had not been edded; and council agreed they felt it worthwhile to stay as is. The lack of signage for
CenterPlace was also mentioned.
10. Public works — Neil Ke'sten
Public Works Director Kersten reviewed page 10 in Ne business plan, and explained that he would like [o
add hvo addi[ional staff posi[ions during the win[er for snow plowing so that there would be oce city
person on each shift to run with the wnhactor, that he had originally proposed full [ime employees who
would take over some of the summer operations as well, which seemed more cost efficien[, howeveq he
explained [ha[ [he Finance Committee preferred [o no[ add additional full time staff; and Mr. Kers[en
mentioned there are safety issues associated with long hours of working on the snow plows. Mr. Kers[en
said tha[ [he year 2010 was the £rst year of being able to recognize the phone utility [au, and [hat belween
[M1e phone [aY and the gas tax, the revenue for this fund is es[imated atjust under $5 million. Mr. Kersten
said if we stay with this budget, it wili consume the fund balance and in a year or two there wodt be any
fund balance; and said he would no[ recommend that course of action now. He explained Iha[ we still
have [he old snow plows and they are working, but they are old; he said memberships of $37,480, which
is associated with Spokane Regional Trensportation Council, were moved into the street fund. Mr.
Kers[en also discussed the plow replacement line item, said that for the stortnwater fund, residents pay a
flat fee and we are about the lowest fee in the state; that state law mendates we have funds in the APA
(Aquifer Protection Area); and said now that sewers are complete revenues will come to Spokane Valley,
but we can only ure [hose for projects where water quality would be improved; [ha[ [hey are converting
the drywells to swales; and said of the 8,000 drywells, most are not pro[ec[ed.
11. Public Satetv - Rick Vanl.euven and Moreau Koudelka
Senior Adminis[rative Analyst Koudelka went over [he figures associated with public safety contrects;
said [hey are not proposing any reductions, but that he wanted to discuss some of the trends in public
safety; and said they are putting [ogether some perfortnance measures since the County found it necessary
to make reductions on their side; he said we wan[ [o measare the perFormance in our deparhnen[ over
time, so that if [hose services are added back, we can address the issue from a Spokane Valley
perspective. Mr. Koudelka explained [hat we see a big savings in law enforcemen[ of $375,OOQ bu[ also
a Iarge increase in de[en[ion and distric[ court, wi[h an overa112.5% increase; and [ha[ to maintain the goal
of I% from [he previous year, the contingency wes reduced. He said [hat projections for law enforcement
costs have an annual grow[h rate of about 3.5°/q and looking to the future in 2013, if we apply [hat
percentage, we will be about $SOQ000 short; and he mentioned if the trends continue wi[h us holding
increases to 1% and outside cos[s increasing 3.5%, that would be a substantial amount and would no[ be
sustainable. Mc Jackson said there are various op[ions we [ry [o uu [o hold new con[racts cos[s down, bu[
in law enfomemen[, a slight reducGon in the sherifFs side in shared resources affects us, so we want ro be
careful of the impact on services over [ime.
Police Chief VanLeuven then distributed copies of the perfortnance meesures and workload indicators,
and discussed pages 87-98 in the draft business plan, including s[affing levels; mentioned [ha[ [he Public
Safety CryWolf program is very successful and for 201Q it generateA abou[ $150,000 with a cos[ of
$40,000 [o implemen[, no[ [o mention [he reduction in the false alarms which frees officers to other
du[ies; and said he works closely with Mc Koudelka and Mr. 7ackson to ensure objec[ives are met for
Spokane Valley. Chief VanLeuven said [raffic complain[s are the highest and most common complaint,
and they evaluate [hose and mos[ [imes discover the complaint is due m other mi[igating factors; and said
[hat he worked closely with Public Works concerning [he intersection of Argonne and Indiana where
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regular serious collisions were occurring, but since the intersection has been blockeA off, there has not
been en injury accident.
Mayor Towey thanked s[aff for today's infortnation, and thanked everyone for coming. There being no
further business, the meeting adjourned at 4:40 p.m.
�
ATTE T: omas E. Towey, ayor
C hris[ine Bai bridge, Ci �led
Council Retreaz: 6-14-2011 Page I I of l l
Approved by Council: 7-12-2011