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2006, 06-17 Special Retreat MinutesAttendance: Councilmember. Diana Wilhite, Mayor Rich Munson, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Mike DeVleming, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember WORKSHOP NOTES SPECIAL MIFETLNG /RETREAT SPOKANE VALLEY CITY COUNCIL June 17, 2006 9:00 a.m. — 3:00 p.m. Staff Dave Mercier, City Manager Nina Regor, Deputy City Mgr Marina Sukup, Comm. Dev. Dir. Ken Thompson, Finance Director. Cary Driskell, Deputy City Attorney Neil Kersten, Public Works Director Mike Jackson, Parks & Recreation Director Tom Scholtens, Building Official Cal Walker, Police Chief Carolbelle Branch, Public Information Officer Rob LaFontaine, Administrative intern Absent: Chris Bainbridge, City Clerk Gary Schimmels, Councilmernber (previously excused) Mayor Wilhite opened the workshop at approximately 9:15 a.m., and thanked Dick and Kathy Denenny for allowing use of their cabin for the retreat. 1. Council budget goals for 2007 Discussion focused on the following possible topics for budget goals for 2007 and of the issues surrounding those topics: (a) acquiring the sewer system, trying to get an interlocal agreement finalized with the parties involved; acquiring assets during the building phase of a new plan; seeking information from the County on details of financing and intcrworkings of the sewer system; primary objective to get the discharge license; the County's philosophy on ownership; putting ownership to a public vote; the collection system versus ownership; managed implementation plan; the need to determine the exact amount of phosphorous going into the river; how would this affect our current public works department; to verbalize the pros and cons of taking over the collection versus the treatment portion and how rate payers would be affected. (b) light rail and acquisition of Appleway; potential funding; maintain the right-of-way and the ability to build in the future; accumulate land and maintain the rights -of -way with the recognition that no funding needs to be in place until the density requires it; the need for public consensus; and the need for joint planning. It was determined light rail would not be a budget goal would rather would be an item for a future study session. (c) annexation; and to identify potential growth areas and begin the process of annexation; that first an annexation policy must be adopted; general policy versus specific areas to annex; and exploring possibilities to handle growth population allocation. (d) implementation of the parks masterplan including park acquisition, and grants for items such as a universal park; upgrading Valley Mission Park, including picnic shelters and playgrounds. Council Staff Retreat June 17, 2006 Page 1 of4 Approved by Council: 07 -11 -06 (e) records management and document imaging; storage needs; citywide coordinated records management including the legal and operational implications; major budget considerations; off -site archiving of records and electronic filing. (f) subarea plans; specific plan for Greenacres; guidelines for neighborhoods to start that process; future street plan versus a complete subarea plan for specific areas, setting out locations of future arterials, collectors, and residential streets; and instructing developers in the procedure for street plans. It was determined this topic would be a good topic for a future study session. The following are the draft 2007 goals: I. Continue monitoring wastewater issues, including governance of wastewater facilities, enhanced citizen awareness of options for the future and pursuit of the most efficient and economical use of allowed wastewater discharges. 2. Explore the available telecommunications infrastructure that may be accessed by public institutions, residents, and businesses within Spokane Valley. 3. Adopt a sub -area plan for the Sprague Corridor and initiate the implementation of achievable recommendations. 4. Amend the comprehensive plan to reflect accommodation of Spokane Valley population projections within and adjacent to city limits and to outline an annexation policy procedure. 5. Adopt a Street Master Plan and draft a financial strategy to implement the plan. 6. Establish departmental priorities and incorporate them into a six -vear business plan for each department that includes forward looking budget and funding implications. 7. Adopt a Uniform Development Code that implements the Comprehensive Plan. 2. Goals for 2006 In refining the goals for 2006, it was determined to place records management as a 2006 goal and to place the topic on a future study session; to continue work on #2 goal (Sprague corridor); and to remove 115 (telecommunications infrastructure). Brief discussion followed concerning lease occupancy, city hall space needs, preference to be a tenant or an owner, what kind of city hall building and where it should be located, funding, current lease commitment and sub - letting possibilities; and whether it should be part of the city center; which led further focused discussion on a city center, if it should include civic governmental buildings, public facilities, should be tied in to a re- development subarea, proposed boundaries, sharing the building with the library, the Safeco building, and having a marketing analysis conducted by the consultant. Mayor Wilhite indicated her preference not to fast track a city hall, but to wait until we are further into the subarea plan before pursuing that issue. Councilmember Denenny asked staff to discuss with the consultant, if city hall plans would interfere with the consultant's long -term planning, or if it is such a wide area as to not make a difference, and to ask if the consultant felt the city hall location would have a major influence on public input. There was Council consensus that staff gather the information. 3. Business Planning Template Deputy City Manager Regor explained that the template for a business plan is an information item intended to give ideas of what could be in such a business plan; adding that the template was compiled by Administrative Analyst Morgan Koudelka. She explained that as departments put their plan together, the Council Staff Retreat June 17, 2006 Page 2 of 4 Approved by Council: 07 -11 -06 focus would be on citywide goals and using citywide decisions on what they are putting together, such as the customer service plan. Director Regor explained the overview on page five of the packet materials, and added that as a result of the plan summary, staff would know which strategies to implement over the next years, keeping in mind the financial impact, and working within existing staffing resources. City Manager Mercier added that after five years, we would move to a true performance based plan and establish benchmarks to measure productivity; that this first iteration is more of what can we imagine coming next; that thc business plan is the needs analysis and lays the foundations for next target or future needs. Ms. Regor further explained that this is a process to first focus on defining the organization, and over time deal with some more refinements, similar to what is now being done with some of the permitting functions. Mr. Mercier stated that staff has been on a work marathon; and not being certain with future financial footing, we have been very tempered in the amount of employees at the start; and that some employees are facing burnout in the last several years; that we will start now to add in employees to get the work done in the manner needed; and as an example, stated we only have one IT specialist for two buildings. Mr. Mercier also stated that once more information is compiled and projects completed, such as the subarea plan and street master plan, those facts will help further form the business plan. The group broke for lunch at 12:30 p.m. and reconvene after lunch 1:20 p.m. 4. Updated Financial Forecast Finance Director Thompson highlighted his financial packet material, including problem statement #1, stating that the outlook is not quite as positive as back in February; revenues and expenditures, and that he increased each department by approximately 6 %; the $100,000 for temporary assistance (which will be phased out over thc next few years); sales taxes with an approximate 2% increase; property tax; dropping card room revenues and that gambling drops have been experienced county-wide; and that the financial forecast does not include any new staff, new programs, or expanded programs. Director Thompson then addressed problem statement #2, the street fund, and the continuing problem of how to pay for snow plowing, fixing potholes, etc., and that we have established a reserve for severe winters; that expenditures increased about 8 %, some of which is due to our high dependence on oil, fuel, and asphalt, adding that asphalt went up about 30% just this year. Problem statement #3 — capital improvement program funding, also shows resources and expenditures for the next five years; and Mr. Thompson mentioned that we clo not have a separate arterial street fund as we are tracking that directly into street funds. Director Thompson said that expenditures are difficult to project, as if we plan on a project but can't get state participation, the costs jump around; and these figures are generally outdated within a few weeks. Councilmember Munson stated his preference to discuss impact fees at a future council meeting; adding that it would be his preference to invite all school districts to give their input based on each facility's plans, and to also include parks, schools, and roads. After further discussion on impact fees, including what various counties and cities charge, there was Council consensus to add impact fees to the July 18 study session. Director Thompson then explained page four of his handout, which showed the annual projected shortfalls for problem statements 1, 2 and 3. 5. Joint Planning Councilmember Munson distributed copies of the agenda for the June 19 Intergovernmental Cooperation Forum, and explained that assistance on joint planning was sought from CTED, and Nancy Ousley would be discussing a state perspective on planning for urban growth areas; and that Councilmember Munson estimates there should be about 40 -50 people at the meeting. The July 13 meeting with Senator Murray was also mentioned, which will likely be held in the afternoon, to allow others to attend the TMDL. Council Staff Retreat June 17, 2006 Page 3 of 4 Approved by Council: 07 -11 -06 meeting earlier in that same day. Mr. Mercier mentioned that we might want to ask how annexation is treated during the formulation of joint planning agreements; and suggested asking at that Monday meeting, if all annexation is paired with revenue shared agreements. 6. Information Only: Workplan Update. This is for information only and was not discussed. 7. Information Only: Annexation Approaches: This is for information only and was not discussed. Other items of interest: Councilmember Gothmann mentioned a homeless initiative meeting he attended recently. He explained that there are approximately 2,000 homeless in Spokane; 200 in the remainder of the County, and 100 of which are in the Valley; that Spokane County and Spokane City along with Housing and Community Development, are combining forces to spend funds of approximately $400,000 to assist the homeless; and the Mayor of Spokane agreed to participate; that Spokane Mayor wants to keep administrative costs to a minimum to keep the bulk of the funds for the homeless; that two committees have formed to set policy, with a target of the end of this year to allocate funds. Councilmember Gothmann explained that this would be a pilot program and could change over the next year; that a task force would be formed to take in applications and make recommendations to the policy board on fund distribution; and that those entities have asked us to schedule a resolution to consider joining this program. The goal, Mr. Gothmann explained, is to cut homelessness in half in the next ten years. Councilmember DeVleming mentioned there will be a need to distinguish between the homeless and transients, and perhaps others such as panhandlers. Councilmember Gothmann stated that there is a request that one councilmember serve on the policy board and have three citizens on the task force. Discussion followed concerning a need to see the written goals; anticipated expenditures; and that the board members and citizens would determine how funds would be spent. It was determined this topic should be placed on an upcoming July council agenda as an administrative report. There being no further business, the meeting ended at 2:55 p.m. ATTEST: C ristine Bainbridge, City Clerk Council Staff Retreat June 17, 2006 Approved by Council: 07 -11 -06 CI-Am,;(k.-CL- Diana Wilhite, Mayor Page 4 of 4