2003, 12-23 Regular Meeting MinutesMINUTES
City of Spokane Valley
City Council Regular Meeting
Tuesday, December 23, 2003
Mayor DeVleming welcomed everyone to the 34 official council meeting, and called the City of
Spokane Valley Regular Meeting to order at 6:10 p.m.
Attendance:
Councilmembers: Michael DeVleming, Mayor
Diana Wilhite, Deputy Mayor
Dick Denenny, Councilmember
Mike Flanigan, Councilmember
Richard Munson, Councilmember (via telephone speakerphone)
Gary Schimmels, Councilmember
Steve Taylor, Councilmember
Staff Present: Dave Mercier, City Manager
Nina Regor, Deputy City Manager
Stanley Schwartz, City Attorney
Cary Driskell, Deputy City Attorney
Ken Thompson, Finance Director
Marina Sukup, Community Development. Director
Neil Kersten, Public Works Director
Morgan Koudelka, Administrative Analyst
Sue Pearson, Deputy City Clerk
Chris Bainbridge, Cite Clerk
PLEDGE OF ALLEGIANCE: Mayor DeVleming led the Pledge of Allegiance.
INVOCATION: Pastor Pat Mecham of Opportunity Presbyterian Church gave the invocation.
ROLL CALL: City Clerk Bainbridge called roll.
APPROVAL OF AGENDA: It was moved by Councibnember Taylor and seconded by Councilmember
Denenny to have discussion regarding potential changes that •might need to be made to the interlocal
agreement to the tourism promotion area, and to have such discussion toward the end of Business.
After brief discussion, Mayor DeVleming referred to section 1.9 of the Governance Coordination Manual
and said that items may only be added to the agenda by the presiding officer, three councilmembers, a
majority of the Councilmembers present, or the City Manager. Mayor DeVleming asked if any other
councilmembers wished to support the motion. No other councilmembers voiced their support. 11 was
proved by Mayor DeVleming and seconded by Councilmember Schinrmels to approve the agenda as
presented. Roll Call Vote: In Favor: Mayor DeVleming, Deputy Mayor Wilhite., Councilmembers
Schitnmels, Flanigan and Munson. Opposed: Councilmembers Taylor and Denenny. Abstentions: None.
Motion approved.
COIM1LITTEE, BOARD, LIAISON SUMMARY REPORTS:
Councihnember Denenny: reported that he attended the Spokane Transit Authority Board meeting which
involved discussion and ultimate approval of their budget; that the budget reflected substantial reduction
in operations beginning July; and that there will be two major public -input meetings on this issue in
January; and that after the public process, the Board will vote on the proposed changes.
Council Minutes 12 -23-03 Page 1 of 5
Date Approved by Council: 01 -13 -04
Councilmember Taylor: explained that he attended the Board meeting of the inland Northwest
Technology Education Center, where the proposal was discussed to move forward with the connect model
based on the University of California San Diego connect economic development model used to promote
the high -tech sectors in that City; and they are attempting to put together a similar model for the Spokane
region.
Councilmember Munson: said that he and Councilmembers Flanigan and Wilhite attended the National
League of Cities Convention in Nashville where they attended many classes designed to help officials in
their roles, such as a course on How to Involve the Public.
Councilmember Taylor asked for a point of order in reference to adding an item to the agenda, and that a
motion and a second were stated and asked if a vote should have been taken. Mayor DeVleming cited the
Governance Manual dealing with the three ways to add items to an agenda. Mayor DeVleming also
mentioned the issue has been scheduled as an agenda item for the January 13 agenda.
MAYOR'S REPORT: Mayor DeVleming reminded everyone that the Christmas tree is scheduled to be
taken down January 2, and asked that any volunteers meet at the U -City parking lot that morning at 9:00
a.m. 11 was moved by Mayor DeVleming and seconded by Rich Munson to confirm the appointment of
Rich Munson to fill the vacancy on the Spokane Transit Authority's Board in place of Deputy Mayor
Wilhite's resignation. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None.
Motion carried.
PUi3LIC COMMENT: None was offered.
1. CONSENT AGENDA: After City Clerk Bainbridge read the Consent Agenda, it was moved by
Mayor DeVleming and seconded by Councilmember Flanigan to approve the consent agenda as
presented. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion
carried.
2. Proposed Ordinance 03 -098 to Create Fund — Second Reading.
City Manager Mercier explained that state law requires cities to formally create funds which are planned
for use in the budget; that the adopted budget anticipates the use of certain funds to receive revenues and
to make expenditures for various programs; and this Ordinance creates that fund. 1t was moved by Mayor
DeVleming and seconded by Deputy Mayor Wilhite to approve Ordinance 03 -098. Mayor DeVleming
invited public comment; none was offered. Vote b_yAcclamation: hi Favor: Unanimous. Opposed: None.
Abstentions: None. Motion carried.
3. Proposed Resolution 03 -055 to Amend Six -Year Transportation Improvement Program.
11 i as moved by Deputy Mayor Wilhite and seconded by Councilmember Flanigan to approve Resolution
03 -055. Public Works Director Kersten explained that this is a housekeeping item and simply adds the
sidewalk project as a result of receiving a grant from the Transportation Improvement Board to construct
sidewalks along Bowdish Road and 24 Avenue. Mayor DeVleming invited public comment; none was
offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None.. Motion
carried.
4. Motion Consideration: Approval of Fleet Management Policy.
It was moved by Mayor DeVleming and seconded by Deputy Mayor Wilhite to approve the Fleet
Management Policy. City Manager Mercier explained that it is appropriate to have an operating policy
and procedures to address the use of the City's vehicles; and that all items raised at the previous study
session have been incorporated into the final draft of the policy. Mayor DeVleming invited public
Council Minutes 12 -23 -03 Page 2 of 5
Date Approved by Council: 01 -13-04
comment; none was offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions:
None. Motion carried
5. Motion Consideration: To Amend Hotel/Motel Contract Concerning Cost Reimbursement.
Finance Director Thompson explained that the agreement states that funds arc to be distributed on a
reimbursement basis from the date the agreement is signed to the now modified date of March 31, 2004.
However, because the agreement was signed so late in the year, staff proposes that expenditures should
quality for reimbursement as of the date of Council approval, or September 9, 2003. It was moved by
Mayor Devleming and seconded by Councilmember Flanigan to approve the amendment to the contract
concerning cost reimbursements, to make expenditures from September 9, 2003 to March 31, 2004.
Mayor DeVieming invited public comment; none was offered. Vote by Acclamation: In Favor:
Unanimous. Opposed: None. Abstentions: None. Motion carried.
6. Motion Consideration: Approval of Probation Services Interlocal Agreement.
It was moved by .Mayor DeVieming and seconded by Councilmember F Lanigan to approve the interlocal
agreement. Deputy City Attorney Driskell explained that after discussing this issue with several other
local jurisdictions, it appears contracting with Spokane County at this point is the best option, and that
staff will continue to research other options for probation after 2004. Mayor DeVieming invited public
comment; none was offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions:
None. Motion carried.
7. Motion Consideration: Manor Appointment to Spokane County Air Pollution Control Authority.
Mayor DeVieming explained that after discussing this issue with council, Councilmember Schimmels has
indicated his willingness to be appointed; and that all small cities will advance a name and then e-mail
vote among the Mayors to determine who to advance to the county for appointment. Deputy Mayor
Wilhite said she would be willing to be an alternate if needed. It was moved by Mayor DeVieming and
seconded by Councilmen:bet. Denenny to advance Councilmember Schimmels to the list of candidates for
this appointment.
PUBLIC COMMENT: Mayor DeVieming invited public comment; none was offered.
8. Fire District Annexation Issues.
Deputy City Manager Regor went over her December 23 memo and the accompanying PowerPoint
presentation on the major options for fire services, and added that First District 1 and 8 preferred we
annex into both districts. Ms. Regor also mentioned that the Spokane Fire District 1 Board of
Commissioners of Spokane Valley Fire Department approved the transfer of the four Spokane County
parcels from Fire District #9 to be merged into District 1. Ms. Regor discussed the significant ongoing
and financial service impacts to the options as shown on the accompanying chart, including discussion of
the maximum levy rates which would be set. Ms. Regor finished by discussing election information and
options, and Council concurred that they have no objections to an April 27` election date.
9. Council Retreat Planning.
City Manager Mercier explained that many cities and private corporations rely upon a retreat as a time to
plan for and address coming issues. After brief discussion, it was determined that February 7, 2004
would be the retreat date with possible times of 9:00 a.m. to 4:00 p.ni. Possible topics for retreat
discussion included five -year financial forecast, 2005 goals, review of department workplans, governance
coordination manual process and rules, comprehensive plan, sewers, and review of contracting. it was
mentioned if more complex items are desired, council could always plan for additional retreat days.
Council Minutes 12 -23 -03 Page 3 of 5
Date Approved by Council: 01 -13 -04
10. Draft MOU re STEP A2reement.
Public Works Director Kersten explained that Council approved $1,010,000 for the STEP program, and
this Memorandum of Understanding outlines the responsibilities and requirements between the City of
Spokane Valley and Spokane County for the 2004 Sewer Construction Program. Councilmember
Munson requested that staff continue the effort not to cut off traffic from major east/west or north/south
corridors for significant lengths of time. The MOU will be placed on the next council agenda for council
consideration.
11. Proposed Street Vacation Ordinance Discussion.
Deputy City Attorney Driskell explained his December 18, 2003 memo addressing the questions of
whether to require payment for the value of the property, and what amount to set for an administrative
fee. Attorney Driskell said Spokane County's vacation fee is $300.00. Attorney Driskell said one of the
previous questions addressed was whether to charge anything for the value of the property; that there is
nothing mandating we charge for the value of the property, but staff suggests if that is an option Council
chooses, we might want to charge a fee which would reflect a reasonable amount of cost recovery.
Councilmember Munson asked in reference to paragraph 2B, if staff is aware and has examined that case
law, and also that the Assessor's Office states that the actual valuation of the land is not relevant, only the
total value of land and improvements are relevant. Discussion continued regarding land value versus
property value; option 1 administrative fee, special exceptions where the right -of -way has been acquired
at public expense, large vacations, and simple vacations. Council agreed to have staff move forward on
establishing an appropriate administrative fee with Council or the planning commission retaining the
option of approval. City Manager Mercier said staff will come back to council with a recommended
administrative fee that staff feels would reflect recovery of costs.
12. Library Report.
Deputy City Manager Regor explained her December 23, 2003 memo and accompanying draft agreement.
Ms. Regor said that the Library Board met December 16, 2003, and offered some alternatives to their
original version approved December 3, 2003. Two variations were approved December 16. One option
is based on a taxable valuation formula whereby the property tax valuation would be multiplied by the
library district rate of .50¢, minus 5% uncollectible amount and that resulting amount would be the
amount the City of Spokane Valley would pay in 2004 for library services. Ms. Regor stated that the
property tax valuation continues to fluctuation, and the 5% uncollectible amount is an estimate and the
actual amount will not be known until the end of the year. Under this option, Capital Facilities Planning
would be included to be paid for by the District.. The second option the Board approved was a payment
based upon Valley usage. Costs were allocated to the Valley based upon the Valley use of each library
branch. Councilmember Munson said he would like to see if our share of use is proportional to our share
of the budget. Councilmember Taylor said he would Iikc the contract based on cost and not on amount of
revenue collected. Ms. Regor said she will confirm if the library card can be used district -wide or only in
one district. City Manager Mercier added that staff will be looking at what other professional service
contracts are part of the 2004 budget so that we can balance whether we are paying the full cost of the
professional service contract: for capital facilities charge but participating on a percentage basis on all of
the other professional services contracts. It was determined staff will focus on option #2 and no longer
attempt negotiations with option #1.
13. Legislative issues Discussion.
City Manager Mercier mentioned that he and Jim Justin, Association of Washington Cities lead lobbyist,
discussed the council question regarding community empowerment zones, and Mr. Justin verified that as
a matter of statute, only six zones are currently allowed creation in the State of Washington, and all of
those zones need be established by January I, 2004; if we want another zone related it would require
legislative activity; that Mr. Justin was not certain of the process required if we were simply looking to
enlarge a zone in our area; that CTED, the governing arm of that particular program, will be discussing
Council Minutes 12 -23 -03 Paee 4 of 5
Date Approved by Council: 01 -13-04
with Mr. Justin the process to follow for enlargement; and whether it can be an administrative agency
decision or needs legislative attention. Mr. Justin informed Mr. Mercier that there are several exemptions
within the fabric of the statutes that created the zone, which expire June 2004, and therefore in the short
session, the legislature will need to visit this topic area to determine whether or not there will be an
extension of the exemption that would otherwise expire; that would provide a legislative vehicle to
consider enlargement of the zone or the creation of an additional zone, depending upon which avenue is
required under the statute. Mr. Mercier added that legislative issues discussion is scheduled for Council
agenda January 13, and the January 20, 2004 agenda includes a motion consideration to adopt the City
Council Legislative agenda. Councilmember Munson suggested writing a letter to the legislators with a
fist and notes and to have this in their possession before they leave for the session. Councilmember
Munson suggested he and Councilmembers Taylor and Wilhite get together to draft the letter.
Regarding tax equalization, City Manager Mercier said that AWC e- mailed the updated figures prepared
by the Department of Revenue, to demonstrate which communities would gain or lose revenue, and there
was no change for Spokane Valley with an estimated $106,000 increase per year under this proposal;
however, estimates and the affects continue to change leaving great uncertainty in the numbers proposed.
Because not all figures are known, Council agreed to oppose this legislation.
Regarding water rights, Councilmember Taylor mentioned he feels this should not be included on the
agenda this year as it is a long tens problem. Councilmember Schimmels agreed this is not a problem
this year for our area. Council agreed however, to support the Public Facilities District issue. Regarding
tax increment financing, Deputy Mayor Wilhite said she is gathering data and will have some information
soon to share with Council. Mayor DeVleming said in reference to tort reform, he would like to monitor
the issue until further information becomes available. Deputy Mayor Wilhite said that Senator McCaslin
introduced a bill last session which will be re- introduced and more information will be gathered for the
next council discussion. [Note: Councilmember Denenny momentarily left the room.] It was also
mentioned that in the letter to be drafted by Councilmembers Munson, Taylor and Deputy Mayor Wilhite,
the letter will also address the support for the PFD expansion. [Councilmember Denenny returned.]
Brief discussion ensued regarding holding a council meeting January 6, 2004. Councilmember Flanigan
indicated he would not like to have a meeting as he intends to attend the County's public hearing that date
on tourism promotion area. It was moved by Councilmember Taylor and seconded by Councilmember
Denenny to have a council meeting January 6, 2004. Discussion turned to issues which might be
addressed at a January 6 meeting in addition to the tourism promotion area issue, Vote by Acclamation
In Favor: Councihnembers Taylor and Denenny; Opposed: Mayor DeVleming, Deputy Mayor Wilhite,
Councilmembers Flanigan, Munson, and Schimmels. Motion defeated.
As there was no further business, it was moved, seconded, and unanimously agreed upon to adjourn. The
meting adjourned at 8:25 p.m.
Christine Bainbridge, City Clerk
Council Miaow 12 -23 -03
Date Approved by Council; 01 -13 -04
Michael DeVlema g, M -yor
Page 5 of 5
NAME .
PRESENT/ABSENT
•COMMENTS
Mayor Michael
DeVleming-Position No. 3
,-- •
'
.
.
Deputy Mayor Diana
Wilhite-Position No. 1
Councilinember Dick
Denenny-Position No. 7
.
t----
. .
.
•
. .
.
Councilmember Mike
Flanigan-Position No. 6
c-----
•
•
Councilmeinber Rich
Munson-Position No. 5
@
.
Councilmember Gary
Schimmels-Position No. 4
1
.
. -
.
•
_
•
.
Councilmember Steve .
Taylor-Position No. 2
„,.-"*"--------
.
CJTY OF SPOKANE VALLEY
COUNCIL MEETING DATE
COUNCIL ROLL CALL
-03
Loving God, we thank you for the joy and the privilege of being here
tonight, for the health that makes it possible, for the faith entrusted to us
by those who put us here. We ask, God, that you will give us guidance
in our task, and confidence that you use the imperfect gifts we offer in a
perfect way. Thank you for a special season of the year —a time in which
we remember that mighty things often have small beginnings. As you
told us through your prophet, "Unto us a child is born, unto us a son is
given, and the government will be on his shoulders." Thank you, God,
that we don't have to carry the City of Spokane Valley on our shoulders
alone! To you be thanks and praise. Amen.
Patrick W. Mecham
Associate Pastor
Opportunity Presbyterian Church
iz/z3/v3
Indirect
Direct Cost per
2003 Cost Per Cost per Hour at Admin M &O
Position # Budget Person Hour 6.27% per Hour per Hour Total Cost Per Hour Per Employee Type
Probation Officer 5 251,988 50,397.60 25.84 1.62 3.55 1.00 :
32.02
Support Staff 6 190,433 31,738.83 16.28 1.02 3.55 1.00 21.85
11
Hours worked per
Position 1,950
Total Hours Workod 21,450
Administration
M &O
76,200
21,549
540,170
Spokane County
Probation Office Hourly Rates
Based on 2003 Budget
3.55 (Cost per hour, based upon cost of $76,200, divided by 11 staff or 21,450 hours)
1.00 (Cost per hour of m&o, based upon total cost of 521,549 divided by 11 staff (g 1950 hours each)
4.56 Total per hour charge for administration and maintenance /operation expenses
ATTACHMENT "A"
L..
,il23
CITY OF SPOKANE VALLEY
2005 FIRE SERVICES
Status to Date (2004 Services)
❑ City and the three FD Boards have approved
extension of services through 2004
❑ FD1 and FD9 have agreed that the four FD9
properties within Spokane Valley city limits
should annex to FD 1
❑ FD1 and FD8 prefer that the City annex into
both Districts
December 23, 2003 2
2005 Fire Service Options
❑ Option 1: Annex into one or more district(s)
❑ Option 2: Contract with district(s) or other
provider
❑ Option 3: Form municipal fire department
December 23, 2003 3
OPTION #la —ANNEX TO FD] AND FD8
❑ Service levels and tax rates constant for
citizens within each district but vary citywide
❑ Subject to potential Boundary Review Board
review
❑ Election required
❑ No startup costs
❑ No transfer of assets
December 23, 2003 4
OPTION #lb -ANNEX TO ONE DISTRICT
❑ Service levels and levy rates change for
citizens switching districts but are consistent
citywide
❑ Subject to potential Boundary Review Board
review
❑ Election required
❑ No startup costs
❑ Assets transfer between fire districts
December 23, 2003 5
■
OPTION #2 - CONTRACT FOR FIRE
PROTECTION SERVICES
❑ Service level established by contract
❑ No election or startup costs
❑ Asset transfer issues to address
December 23, 2003 6
OPTION #3 — CREATE A MUNICIPAL
FIRE DEPARTMENT
❑ City can establish, monitor, and adjust service
levels
❑ City would acquire assets from FD1 and FD8
❑ Startup costs would include operating and
training facilities acquisition or construction,
uniforms, equipment, and liability coverage
December 23, 2003 7
Financial Impact of Options 2 & 3
Est Tax
Value Within
City Limits
Operating Estimated Tax
Tax Rate Revenues
Estimated Tax
Reven ues
(Si. _S0 Rate) Difference
$6,375,000 (6,371,175)
$225,000 (37,635)
FD #1 4,250,000,000
2.9991 $12,746,175
FD #8 150,000,000
1.7509 $262,635
Total 4,400,000,000
$13,008,810
$6,600,000 (6,408,810)
December 23, 2003 8
ELECTION INFORMATION
o Permanent annexation into one or more fire districts requires an election
o Two measures are required for each annexation with the residents of the city
voting to approve the annexation and the residents of the fire district outside of the
city limits voting to approve the annexation. A simple majority is required in
each case
o The City must initiate the annexation by adopting an ordinance and the fire district
must concur
❑ Annexation is subject to a potential review by the Boundary Review Board
❑ The county legislative authority shall, by resolution, call a special election to be
held not less than 45 days from the date of the declaration of the finding
o The estimated cost for election is $80,000 - $109,000. The cost would be divided
according to the number of registered voters in each participating entity
o Other ballot proposition(s) on the same election would reduce the cost per entity
December 23, 2003 9
ELECTION DATE
FILING DEADLINE
February 3
December 19
March 2
January 16
April 27
March 12
May 18
April 2
September 14
July 30
November 2
September 17
December 23, 2003
2004 ELECTIONS
10
TIMELINE IF BRB DOES NOT
RENDER OPINION
45 Days - BRB Consideration
January 15
i
March 1 March 12
(Council /Board Ordinances) (Filing deadline)
45 Days — Election Process
i
April 27
(Election date)
December 23, 2003 11
Nina Regor, Deputy City Manager
December 23, 2003
City of Spokane Valley
2004 Library Agreement
1
TIMELINE IF BRB DOES RENDER
OPINION
45 Days — BRB 120 Days — BRB Review
January 15 March 1
(Council /Board
Ordinances)
i
45 Days — Election Process
i
July 1 July 30
(Filing deadline)
1
Sept. 14
(Election date)
December 23, 2003 12
Current estimated A.V.
$ 4,400,000,000
Multiplied by $.50 / $1,000
2,200,000
5 % uncollectible
(108,750)
Total
$ 2,090,000
OPTION #1 Payment Based Upon Formula
❑ The assessed valuation is still fluctuating
❑ The actual uncollectible amount will be unknown until the end of the year.
❑ Capital facilities planning is included under this option.
Branch use
$1,902,171
Two -year adjustment (6.86
%)
130,489
Spokane Public Library fee
67,200
Total
$2,099,860
OPTION #2 — Payment Based Upon Usage Level
o Branch use is determined by applying the District's cost allocation model to 2002 actual
costs.
o The two -year adjustment is determined by applying the percentage increase from the 2002
general fund budget to the 2004 general fund budget.
o The SPL library fee is the product of multiplying the estimated 1,600 Spokane Valley
residents registered with the SPL by the $42 non - resident fee.
o Spokane Valley would reimburse the SPLD up to $10,000 for capital facilities planning.
Potential Factors Mitigating Costs
❑ Reduced operating hours at the Otis Orchards branch.
❑ Capital Outlay (287,000).
❑ Other factors.
Percentage of SCLD registrants residing in the City of
Spokane Valley
38.630/0
Percentage of SCLD population served residing in the City
of Spokane Valley
36.200/0
Average Annual Increase (2000 -04)
1.93%
Option #2 By the Numbers