2012, 02-07 Special Retreat Meeting Minutes MINUTES
SPECIAL RETREAT MEETING
SPOKANE VALLEY CITY COUNCIL
CenterPlace Regional Event Center
2426 N Discovery Place,Room 213
Spokane Valley,Washington
February 7,2012 8:30 a.m.
Attendance:
Councilmembers Staff
Tom Towey, Mayor Mike Jackson,City Manager
Brenda Grassel,Councilmember Mike Stone,Parks and Recreation Director
Dean Grafos,Councilmember Neil Kersten, Public Works Director
Chuck Hafner,Councilmember Cary Driskell,City Attorney
Arne Woodard, Councilmember John Hohman,Community Development Dir.
Ben Wick, Councilmember Rick VanLeuven,Police Chief
Morgan Koudelka, Sr.Administrative Analyst
Absent: Kelly Konkright,Deputy City Attorney
Gary Schimmels,Deputy Mayor Deanna Griffith,Administrative Assistant
Steve Worley, Senior Engineer
Others Present: John Whitehead,Human Resources Manager
Mike Huffman,Valley News Herald Michelle Rasmussen,Administrative Assistant
Nina Culver, Spokesman Review Carolbelle Branch,Public Information Officer
Joe Stoy, Planning Commissioner Chris Bainbridge, City Clerk
Rod Higgins,Planning Commissioner
Doug Stumbough, Spokane Co. Library District
Peggy Doering,Valleyfest
Diana Wilhite
Mayor Towey called the meeting to order at 8:30 a.m. and welcomed everyone. Following self-
introductions, Mayor Towey said that this informal meeting this is an opportunity to exchange ideas for
our city's future direction.
OVERVIEW:
City Manager Jackson explained that today's agenda is large, and the real "headliner" is street
preservation; he encouraged Council to take as much time as possible to understand the street
preservation plan in order to determine how to move forward in the short term, and how to address
funding for the long term. Mr. Jackson said that many agenda items are interconnected as we'll realize
when the Finance Director discusses such things as Capital Projects, and Ending Fund Balance; and said
that today's meeting format presents a good opportunity to discuss the Citywide Survey; and he reiterated
that Council should not feel rushed and should take as long as needed for each item.
TAB A:2012 Council Budget Goals
City Manager Jackson said these goals were formulated last June; and said it is not too early for Council
to start consideration of 2013 goals, and that we could come back in June for more discussion.
Concerning the "Continue monitoring waster issues" goal, Mr. Jackson said the Wastewater plant was
issued a permit and the plant opened last December; he said he heard there could be future challenges,
adding that the County is still looking at the Saltese Flats for possible discharge options. Regarding the
"Pursue the topic of Solid Waste"goal, Mr.Jackson said this is a large issue and it is still in transition for
the City of Spokane; he said we renewed our contract until November 2014, so we have until then to
determine the options of joining in the consortium, continue with the existing agreement with the City of
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Spokane,or explore other alternatives. Mr.Jackson said he and Public Works Director Kersten have been
discussing this and they feel a study needs to be done to determine true costs, and he added that Airway
Heights City Manager Albert Tripp is also examining the alternatives,to haul it themselves or continue to
contract with Spokane, or be a part of a regional consortium. Mr. Jackson said within the next few
months, he hopes to have a schedule developed working back from the termination date. Mr. Kersten
added that Commissioner French's plan is to meet within the next few months since Spokane City has not
committed. Mr. Jackson said Mr. Kersten and Deputy Mayor Schimmels have been attending the
meetings, with Mr. Kersten as our lead staff on the project; he said we probably should have renewed
conversations,as we want something environmentally sound and sustainable for the long term.
Concerning the third goal of"Review and evaluate development regulations,"Mr.Jackson explained that
Community Development Director Hohman's staff has been working on the side code and comparing our
regulations with neighboring jurisdictions. Mr. Jackson brought attention to page 63 in the 2012 Business
Plan, Community Development Goals and Strategies, and mentioned how everything works together and
that staff works to ensure we are allocating resources as we work on those council goals. Continuing with
the next 2012 Budget Goals of"Develop a Shoreline Master Program," Mr. Jackson explained we are
bringing in an outside attorney and developing a schedule in that regard; and Mr. Hohman said they are
working with the attorney in anticipation of the February 21 Joint Council/Planning Commission meeting,
and City Attorney Driskell said the contract with that attorney should be signed this week. Moving to the
goal of "Pursuing a legislative capital budget request for Sullivan Bridge Replacement and park land
acquisition adjacent to the Park Road pool," Mr. Jackson said we will be talking with Briahna Taylor
today via phone conference for updates on the legislative process.
The final council goal of"Create an economic development plan including options for a new city hall,"
Mr. Jackson said that after the goals were developed, funds were allocated in the budget for an economic
development plan as Council's previous direction was to implement what we could to enhance economic
development, although not necessarily develop a"plan or"book,"and he said staff is not moving forward
for a consultant or a scope of work; he said he and Mr. Hohman have been meeting with various groups
this month and explained they want to make sure that is Council's expectation of not working toward
preparing a document now. Councilmember Woodard said he realizes $75,000 was set aside for this topic
and he would like to see some advertising to promote the City of Spokane Valley, or have a campaign to
promote Spokane Valley as a destination. Councilmember Grafos said regarding the option for a new city
hall, he would like to wait to see what Mr. Hohman has in mind concerning changing the permit center
and what it will cost, and said with our current landlord's desire of a 3% increase in rent, that everything
should be examined before we look at a new city hall; and said that Finance Director Calhoun told him
for what we are spending on rent,we could spend about$8 million and come up with a building; and said
we could buy a building someplace along Sprague for a lot less. Councilmember Hafner asked if we do a
welcome wagon, and Mr. Jackson said that is up to the Chamber, but by the time a new business actually
establishes here, they have had extensive meetings with our staff, sometimes as much as a year or two
before opening. Mayor Towey said now that we have taken the first steps of evaluating our permit
process, he suggests the second step is to get stakeholders involved and then implement suggestions from
there. Mr.Jackson asked Mayor Towey if he would define"stakeholders"and Mayor Towey said he sees
stakeholders as members of the community, and said we have to get community input regarding our
economic development plan and then implement what we can from what we hear from the community.
Mr.Jackson replied that we do not have a deadline for when to take the next steps,and he mentioned page
9 in the business plan; he said we are working on these things as a staff, then we will seek direction and
guidance from council, and Mr. Jackson went over several of the "bullets" on page 9, "Executive
Summary-Program Descriptions." Mr. Hohman added that when we discuss economic development later
today, we will also talk about scheduling; that by the end of March they should have completed the work
with the economic development partners,and will work then to add an economic development component
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to our City's website. Mr. Jackson mentioned that he, Mr. Hohman and the committee have dedicated
quite a bit of time on this but it is difficult to put things on a definite schedule; and Mr. Hohman added
that a lot of these tasks will come out of meetings with our economic development partners to see what
they are doing and where we can enhance that; he said a plan is in flux until those meetings have been
conducted, and after that, he feels staff will be able to come up with a more concrete schedule.
Councilmember Wick said instead of a consultant to create a book or a planning document, of those types
of documents he has seen, it seems they contain a key element of leadership, and said we don't seem to
have that element of our city taking the leadership role in getting these groups together and discussing
how we can help each other; to focus on the larger picture; he said the Chamber is discussing putting
together a task force; he said it is not necessarily to implement everything, but it is necessary to bring
everyone together; he said he is not talking about a regional committee but to use our funds to help
implement some of those ideas from the suggested committee or task force. Mr. Jackson said that is part
of what we are trying to find out when we meet with other groups that support economic development, so
that we know exactly what they are doing and share what we are doing so we don't duplicate efforts; he
said staff can develop a description and articulate that to the groups and continue to develop that
description as they meet. In response to a question about which groups are being referred to,Mr. Jackson
mentioned it would include groups such as the Chamber of Commerce, Greater Spokane Inc, Convention
and Visitor's Bureau, International Trade Alliance, Regional Sports Commission, and the Arts Council.
Mayor Towey acknowledged that the problem is everyone working independently and that we would be
stronger if we worked together as a region.
Councilmember Grafos said he feels we are early in the process and that what Mr. Jackson and Mr.
Hohman are doing now is the correct path; that is to gather the information and meet with those agencies
to see what they're doing, and then determine how to put it all together. Councilmember Wick added that
the issue is how we want to take that leadership role of bringing them all together, and Mr. Jackson
replied that he anticipates coming up with a schedule and giving Council a progress report about April;he
said the groups are excited to talk with us and staff is receiving good feedback, and he mentioned he has a
meeting with the Chamber this Friday. Councilmember Grassel asked when do we add the component of
the "big picture" list of things we want to see in Spokane Valley; she mentioned the ideas of expanding
the River trail and proceeding much like the City of Burien; or like the library plan that has come up, and
she asked when do we integrate all that and discuss the more specific ideas; she said the Convention and
Visitor's Bureau (CVB) as well as the International Trade Alliance(ITA)are waiting for us to give them
our concepts we want developed; and said they want to come in and partner with us; she mentioned she'll
be participating on the new Sports Complex Board as we will want to be part of that conversation; she
mentioned the idea of the City having a brochure of things to do and see specific to Spokane Valley, and
to have those brochures in hotels; she said there are small things we can start doing now and have the
larger economic development of implementing a more efficient, streamlined government; and then do the
projects, and said she would like to see more direction from the Mayor and City Manager on this and to
perhaps have a task force to meet for three months to come up with for example, the top ten ideas, and
work together to implement that; she said this was discussed last year but it hasn't moved forward.
Mayor Towey said he thought a task force of people from different backgrounds would be beneficial to
define needed projects. Councilmember Woodard said he feels it is critical to have the "round table"
discussion to define the plan and make projections for the next ten or twenty years; and said we need one
"go-to person" as well. Mr. Hohman said the format is something they want to discuss. Mayor Towey
also mentioned this City has not relied on committees or task forces in the past, and said it would be
beneficial to define the objectives. Councilmember Hafner added that we want to make sure any group
would be progressive and productive and the members must feel they play an important role and are not
spending useless time on a committee; and said we need to look at the players and make sure the leaders
move forward. Councilmember Grafos said we need to define the responsibility of the city and taxpayers
as opposed to a vision of someone from California; and reiterated that he feels Mr. Hohman and Jackson
are on the right path.
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City Manager Jackson said these are a lot of great ideas and we need to start putting it into some shape;
and suggested it would be good if council has time to reflect on the projects and what they mean to
economic development;that he hasn't done research on the return on investment or the impact of projects
on economic development; said our resources are scarce but we can start to give some form to this. Mr.
Jackson said that Parks and Recreation Director Stone will also discuss the Parks & Recreation plan to
talk about a sports complex or River access in order to get a feel for what those projects mean to the
community; and again reminded Council not only do we have limited resources, but the region does as
well as we can only put so much demand on the taxpayer; adding that we have to determine how we
define our role and still have it reasonable and achievable. Mr. Jackson said we will also talk about the
library plan, that there are lots of different parts and we will do our best to put all the parts together and
come back to council to see if that is what Council is thinking; he said we are still trying to find our way
and we need enough information and planning to articulate what we would want a committee to do and
re-stated that the June retreat will be another good opportunity to continue this discussion and start to give
it more shape. Councilmember Grassel suggested we might be making this harder than it is;that we could
form a committee with participants already involved, such as the CVB,the Sports Commission, and some
members of council, and have that group brainstorm to define some projects of interest; with that task
only and to accomplish that in a few months; and afterwards, to report to council; or attend some
community meetings and get further community feedback; the goal is to define projects, determine what
is missing and what they want do so; she said the funding would affect what they can do but the concepts
are needed first, and suggested that could be done by May of this year; and she stressed the need to be
pro-active; and suggested additional ideas such as beautification on Sprague with perhaps better lighting,
better signage; and suggested keeping it to the simpler projects;but to just do it.
Councilmember Hafner agreed and suggested the need to have one person as the catalyst to guide and
coordinate the group. Councilmember Wick suggested the task force, or committee come up with the
goals and means or process to achieve those goals. Parks and Recreation Director Stone said that they'll
be doing a similar process as we work to update the Parks Masterplan: make a list of priorities of what the
community and businesses want, find out what is missing whether in the form of properties or facilities,
and use the public stakeholders as the great resource they are. Mayor Towey said council would have to
clearly define the task, the length of the task force, and have clearly defined goals and responsibilities,
and Councilmember Hafner suggested not having too many people, but perhaps ten or fifteen, with a
couple councilmembers. Councilmember Woodard suggested sending out an invitation to come talk
about development; and we facilitate the meeting but not call it a"committee" as that complicates it;just
determine who we want to be included and send them an invitation. Councilmember Grassel said she and
Councilmember Wick and Mr. Hohman come determine such a list then come back to council with a
plan, including defining goals and a facilitator and Councilmember Wick suggested the group also work
with staff to develop the goals. Mr.Jackson said he is hearing two separate issues: one which is a focused
economic development program which will keep staff busy, and the other to identify projects specific to
economic development, more project oriented; and Councilmember Hafner suggested getting together
with the agencies to devise the list of projects. Mr. Jackson acknowledged the need to get a feel for what
people in the region want in relation to projects, and keep that separate; he said if we start to pull people
together to discuss economic development in general, that might not clear the haze. Councilmember
Grassel suggested having that started sooner rather than later; said early feedback is important; and that
she feels now is the time to start moving forward.
TAB C: Legislative Agenda:Phone Conference with Briahna Taylor
City Manager Jackson said Lobbyist Briahna Taylor is standing by on speaker phone; and he mentioned
the additional"Legislative Report"update from Gordon Thomas Honeywell, dated February 6, 2012.
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•
Lobbyist Briahna Taylor explained the following:
The Fiscal Committee deadline cutoff is today, and earlier last week many bills did not pass the Policy
Committee deadline; so if not voted out of committee by the end of today,many bills will be dead, except
those deemed necessary to implement the budget; sometimes they really are necessary and other times
they are just labeled so politically in order to move them forward. A large number of bills will die today,
and then the legislators will be on the floor making speeches and voting on bills.Last week the House and
Senate talked about the budget but in very preliminary conversation as most are waiting for the February
16 revenue forecast to be released, which will indicate if revenues have gone up or down; and of course
many are hoping it will have gone up to eliminate some cuts. Early conversations indicate they will cut
local government funding such as cities, counties, and special purpose districts like schools, about $300
million statewide, which is a huge cut. Alcohol revenues are likely to be included in that amount; early
indications are the legislators are going to sweep local state-shared revenues into the state general fund;
which is being lobbied against but it is an uphill battle. Finance Director Calhoun said if both the
streamlined sales tax and the liquor tax get cut, we are looking about a$1.5 million loss. Ms. Taylor said
the liquor profit revenue is protected under 1183, so we'd be guaranteed to receive the same liquor
revenue as in previous years, but no additional revenues from any increase in liquor sales per the
initiative. The initiative could be overturned with a 2/3`d vote of the legislators, but that is not likely.
With that in mind,Mr. Calhoun said we would still look at a loss of about$1 million.
Regarding Jobs and Transportation Packages: the initial thought was the transportation revenue proposal
was going to be large, like $20 million with a significant gas tax increase; but it soon became evident that
was not the voter's will or the legislator's to increase the gas tax significantly; so the transportation
system lacks revenue; and if they don't generate some kind of money, projects on state transportation
routes would end, so the solution developed is a fee package to serve as a short bandaid for the state
transportation system to raise transportation related fees and fund transportation project, and which will
be maintained through the Department of Transportation; that package will be relatively small and fee
based and there will be limits on how those dollars can be used; they thought it could get done this year
and then in 2014 have a larger gas tax. The Jobs Package is being discussed; they could bond some
income revenues into the capital budget like the public works trust, then fund capital related projects that
do not include transportation projects, but more like water and sewer projects. Sullivan Road Bridge is
eligible for funding in either the transportation package or the jobs package since the jobs package
includes important long-lasting infrastructure projects. The delegation has submitted that through both
parties and they are working to get a portion of that funding if those packages move forward. If it moves,
then they want to make sure it gets directed to Spokane Valley. Public Works Director Kersten asked
about the proposed fees,and Ms. Taylor said there is a lengthy list,and after today's call, she will forward
that list to Mr. Jackson for distribution. She said the list of fees is currently being negotiated and she will
forward that list as well.
Regarding House Bill 2253 to streamline the SEPA process, she noted the City testified in support of the
bill and since that hearing, the bill has been amended twice; now it would require the Department of
Ecology (DOE) to conduct rulemaking over the next two years to update the SEPA categorical
exemptions, which will be done through a rule making process which will give the DOE deadlines to
meet; and the environmental checklist will also be updated. The second part of the bill creates new
statutory categorical exemptions for certain nonprojects, and last, it modifies other provisions related to
planned actions and environmental checklist requirements. She expressed her appreciation to City staff
for their help with this. Community Development Director Hohman said they look forward to this bill
advancing as it will make a difference to our local projects which have about a six-week delay for no
apparent reason but due to SEPA regulations; he said a boundary line adjustment always means a six-
week delay and this bill will help streamline our process; and he extended thanks to Ms. Taylor for her
work on this bill.
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Regarding cutting local government revenues, Ms. Taylor said she heard they'll cut the revenues and then
help in other ways to help generate revenues at the local level, or save money in other areas. She
discussed local government revenue and local bills to provide revenue to cities; said these proposals were
developed by the Association of Washington Cities and the Association of Counties and include House
Bill 2728 and Senate Bill 6521, which have six different authorities to help cities raise revenues.
Transportation Benefit Districts proposed legislation would allow proposing a $40 tab fee without voter
approval. Another pending bill moves the voter-approval requirement for the local public safety sales and
use tax, and increases property tax revenue limit to inflation instead of the 1%, which could increase
property tax revenues each year, but said she thinks that requires a ballot vote. Ms. Taylor clarified the
types of cost that SEPA can cover and authorizes cities to accept electronic payment, whereas counties
already had that authority; which might not bring in more revenue but would streamline the process
making for less delinquent payments. She said these bills have been heard in the house and senate but
have not passed out of fiscal committee, which needs to be done today; and said some provisions will
likely be removed but again, we won't know until they vote on the bill. She mentioned that Senate Bill
6582 would allow cities to impose voter approved gas increases in one cent, two cent, and three cent
increments. The House version of bill 2641 would limit local government audits to once every three
years, and allow cities and counties to use volunteers despite collective bargaining agreements. This bill
might be deemed necessary to implement the budget;the Senate version was gutted and the house version
didn't meet the cutoff, so if this were to move forward, it would have to connect with any of the local
revenue cuts. She said that Representative Shea is working on a bill to increase the threshold for
documents going through the Shoreline Master Program; the bill passed out of the House unanimously,
and was referred to the Senate. She said Senator Patten has a bill to offer B&O(business and occupation)
exemptions for small businesses; that it passed out of the economic policy committee and was referred to
the Ways and Means Committee; and said it must pass out of there today, adding that it doesn't seem
likely. She mentioned the bill regarding the lodging tax which was introduced last week to remove the
sunset date, and she clarified that the use of the revenue clause which is scheduled to end 2013, might be
removed. Councilmember Wick asked about the Waste-to-Energy plant and of a bill that would deem
that renewable energy; but Ms. Taylor said she wasn't familiar with that,and it has not been scheduled for
a hearing so it is not moving forward. Mr.Jackson and Council thanked Ms. Taylor for her update.
Mayor Towey called for a recess at 10:02 a.m.,and reconvened the meeting at 10:16 a.m.
1.ECONOMIC DEVELOPMENT—JOHN HOHMAN
Community Development Director Hohman said he put together some slides that were meant to spark
discussion; he said he wanted to have that kind of dialogue so we can focus on the approach, which he
said is a multi-tiered approach of focusing on the elements, then move to the foundation, and after we
build a strong foundation to then layer elements on top of that; and thirdly, to work with council to put
together some projects keeping in mind the need to focus on the economic benefits of those projects. Mr.
Hohman also noted they have been working with economic development partners to identify potential
programs. Mr. Hohman explained that one of those foundational items is as noted on his previous
"roadmap" is to enhance the permitting process. Mr. Hohman said they had various public meetings a
few months ago and many people expressed their appreciation,but said they doubted we would be able to
undertake such a large project.
Working on the Comprehensive Plan Chapter on Economic Development, Mr. Hohman said they will be
going before the Planning Commission to initiate discussion there and make sure the over-arching
guidance in the document will cover all the elements, and said the Planning Commission meetings will
allow time for public comment for other ideas. Concerning the status of the "roadmap" and different
tasks associated with that, Mr. Hohman said they have completed the meetings with staff to identify
expectations; and Director Hohman went over the status of and steps for his "Roadmap for Enhanced
Permitting" as shown on slides four through eight in the packet materials. Concerning task #3: Organize
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Forms and Procedures, Mr. Hohman said they have completed work on all the Planning Commission
forms and those are reflected on our website; he said they now have strict control on the forms and have
eliminated the confusion about the forms; and said the planning procedure/process,which is to make sure
all staff is handling everything the same way, is about 50% complete. Regarding Task #4 to improve
communication with the development community, Mr. Hohman said they held a developer's forum in
October and anticipate holding an informal roundtable discussion in March; he said staff is now
structured but flexible enough so decisions can be made at the counter. For task 6 and 7, expanding
express permitting and implementing counter plan review, Mr. Hohman said staff can now issue about
80% of the sign permits within about an hour or two. Mr. Hohman explained that free-standing signs are
more difficult and need more structural review,but said staff is examining ways to streamline that as well,
and said streamlining the process for the community means streamlining the process for staff.
Director Hohman explained that Task 7: Implement Counter Plan Review, will probably mean some
structural changes to the organization as the idea is to have a better trained permit center staff that can
look at projects as they come in and process them without delaying the permit for days as they want to
quickly process the simpler residential permits like sheds; and said he realizes it will take a higher quality
employee of perhaps a project facilitator at the permit center, and said he and City Manager Jackson are
working on that. Mr. Hohman said if we don't have highly trained employees as the first line of
interaction with the public, we lose a lot as first impressions really are important; he said citizens want a
knowledgeable person to guide them through the process; that citizens need to know we are here not just
to explain the code, but to explain to citizens how they can achieve their goal. Mr. Hohman said that
Task #8 to Review and Revise Development Code includes the completed Boundary Line Adjustment
amendment and the landscaping code they are working on, as well as the sign code changes currently
going through the Planning Commission. Concerning the relocation of the permit center, Director
Hohman said that has not progressed as quickly as he would have liked, and part of that was due to our
desire to occupy as much or all of the first floor, which meant a tenant would have had to re-locate to a
different floor, and said they recently learned the tenant does not want to move, which means that doesn't
provide the type of efficiencies we had hoped for, but are still looking at options on how to best move
forward. Mr. Hohman said they hired an architect to help review the existing floor plan, which is also in
today's packet materials;and said that plan will focus more on a front door approach; he said the estimate
to make those structural changes to the floor and area is $200,000, and includes moving walls and
creating a public counter to combine the permit center with the front area receptionist; and said they are
looking for options to decrease the cost. That led to discussion of a City Hall.
Mr. Hohman said the lease for our current city hall building expires March 2013, and at some point we
will need council guidance on council's preference; he said it would be difficult to move to another
building within a year's time and believes we are where we'll be for a while;and said the topic is open for
discussion. City Manager Jackson said if we were to invest $200,000, we need to consider what is a
reasonable amount of time to amortize that investment if we stay where we are for another four or five
years and then what; or if we are interested in purchasing or building a facility, questions to consider are
do we start now for a new building, or look at working an existing configuration of a City Hall. Mr.
Jackson said we are coming close to needing to make a decision on how to move forward;that he feels we
are most likely looking at a city hall facility that will be here a hundred years from now; that we have
been in the current space for almost nine years now. He said we could invest the$200,000 and if the right
deal came along,then move; and said it is largely a matter of how we look at the facility; and said this is a
council goal but staff is not prepared to move forward without further council discussion. Mr. Jackson
said we have not looked at potential facilities or potential land purchases; but that a four to five year
horizon is not too long to begin planning. Councilmember Hafner said we should do something now for
the development of our city;and Councilmember Wick added that he would like to at least start looking at
having our own city hall. Finance Director Calhoun added that there is currently about$2.5 million in the
capital facilities fund. Mayor Towey said the question to consider is, do we stay here for the next four to
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five years, or use that $200,000 to renovate another building, or use that to renovate what we have now;
and said council needs to make a decision of where we would like to be in four years. Councilmember
Grassel asked if that would include a police precinct and Mr. Jackson replied that we own that building;
and it works well, so the current concept is not to include a precinct in a new building. Police Chief
VanLeuven added that smaller cities generally have a police precinct incorporated into a city hall, but
cities our size generally have those facilities separate as a police precinct takes up a lot of space.
Councilmember Grassel asked if staff could come back to council with comparisons to help council
decide whether to remodel what we have or purchase a building; and said at some point we will need our
own building.
Mayor Towey said we have not actively pursued a different location and said there are a lot of buildings
that have come up for sale that might fit our needs. Mr. Jackson added that we have an existing plan on
how much square feet we need and that could be reduced from the original expectations; and said some
questions to consider include whether we have reached our maximum staff size, and are we providing the
services the citizens expect. Mr. Jackson said we put a lot of work into a city hall concept plan, but that
doesn't preclude us from moving forward; that a $200,000 investment is substantial but said he feels it
could be recovered if we were to stay here for another few years. Councilmember Grafos suggested
looking at all those buildings on Sprague and Appleway while at the same time, Mr. Hohman refines the
cost of the remodel; and he asked if we are "stuck" with the landlord's proposed 3% increase.
Councilmember Woodard suggested it would take a few years to complete the remodel, and said if it
appeared we were going to purchase our own building, what about the possibility of a month-to-month
lease, or an annual lease with optional multi-year renewals; and said we would be aiding in creating
economic development if we were to have a city hall building; which he added should be along Sprague
or not far from it. Mr. Jackson interjected that all this will be brought forward as that idea develops; but
that it wasn't meant for a topic of discussion for today.
Community Development Director Hohman continued with his discussion, and explained that regarding
Task 10 to implement a permit tracking system,that staff is undergoing training now with the new system
with an anticipated "go-live" date of next Tuesday; and said all the old information from the County's
PLUS System is being converted into the new system; and said the vendor is on-site for about four days
to help us work through any issues that may come up. Mr. Hohman said eventually in a few months, this
should open a web portal which will enable us to work with the development community and citizens to
have all the permitting information on line. For Task #11 to Implement Performance Measures, Mr.
Hohman said a project survey form is now completed so when a project is slowed,we will be able to send
the applicant a form from which we print reports showing the status; which he added will be an important
factor to measure how well we're doing; he said this feedback will help us determine what more we can
do to help developers and others. Lastly for Task #12 to continue staff coaching and training, Director
Hohman said we want to make sure we have the best trained and motivated staff as possible. Mr.
Hohman explained that staff has been working with economic development partners such as GSI, CVB
and others listed on his slide presentation on page 10; he said there hasn't been a central leadership role
to date to focus the goals in any direction and said they will have to map out what everyone does in order
to get all the pieces together, and then to focus on what is specific to the Valley; which he explained will
be a work in progress. Director Hohman said we are a great city and a great amount of development
activity is occurring now; he said some significant projects have begun as noted in the slide presentation,
such as Lone Wolf Harley Davidson, Enterprise Rent-a-Car, and others; and that recent pre-application
meetings and project review activity include CarMax and other manufactures seeking to expand their
operations, such as Maverick Station. In conclusion, Director Hohman said staff continues to work to
refine the City's business plan, work on comprehensive plan amendments, and look for further
development of the three-tiered approach mentioned earlier. City Manager Jackson said we would
integrate a project discussion in the plan as well. Councilmember Hafner mentioned the Spokane Boat
Show and said some of those dealers reported this was their best selling year; and Councilmember
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Woodard added that the real estate market has seen a substantial increase in people buying homes, noting
that the value of homes has not increased, merely those seeking to buy a home under these economic
conditions. Councilmember Grafos suggested we might look into allowing those boat dealers in the
Corridor Mixed Use area.
2. STREET PRESERVATION—NEIL KERSTEN
Public Works Director Kersten explained that as noted in the "2008 Pavement Management Plan," the
annual preservation estimated project need was $7.3 million, and at the time of that plan, we thought we
were bringing in about$3.1 million in grants, but said there was a shortfall. Mr. Kersten stressed that this
is a concept plan. He said as you look at the ratings on the streets, keep in mind these are visual ratings
and there have been no structural tests or core samples taken as doing so on the number of roads we have
would result in a huge cost. Again Mr. Kersten said this is a guiding plan that helps with our
understanding of the overall condition of roads; and that it appears our roads are in bad condition or
getting in bad condition. He explained that in the 2008 plan we had roads that looked pretty good, but
then some roads deteriorated faster than others. Mr. Kersten explained the map showing projects from
2009, 2010 and 2011; and notes which one are completed projects; which are proposed but did not have
funding to complete; and which ones are not on the plan but became a project that needed to be done, and
he mentioned the spreadsheets that go into greater detail on those projects. Mr. Kersten said when the
plan was done in 2008,they realized a lot of streets were deteriorating faster than they should have so we
came back with street standards that would keep that from happening in the future.Mr. Kersten explained
some of the things that would cause streets to deteriorate so fast included not being properly designed,
and he briefly explained some of those associated issues, such as cold joints in conjunction with our
freeze/thaw climate. Mr. Kersten discussed some of the methods used to preserve the roads such as hot-
paving and crack sealing; and of the cost comparison of preserving roads versus reconstructing roads,and
mentioned some of the roads which had preventive maintenance and/or were reconstructed; and said staff
works to explore as many options as possible to keep the pavement new and sealed; including what
doesn't work on heavy traveled roads, like fog-sealing, noting that it works well on the less traveled
residential roads. Mr. Kersten said the best method is a grind and overlay or just an overlay over the
existing road to provide more structure; and said with this process, even some roads thought to be
marginal will keep for several years longer; he said that is not a long term solution but is not near as
expensive as the long-term solutions. Councilmember Woodward said he feels on the reconstructs, if the
road is still drivable to leave them and let it go to gravel,then tear it up and do it right. Mr. Kersten also
cited examples of recent road work such as Sprague, where costs could be as much as four times greater
for a reconstruct. Mr. Kersten added that the real problem is the impact to businesses; as grind and
overlay has almost no impact where a reconstruct could impact a business for three or four months.
Mr. Kersten explained that the 2012 pavement plan spreadsheet shows we have a about a $6 million
annual need in terms of preservation for arterials, and about $3 million a year for residential; and the
question becomes do we do it now or later; he said there was about a $2.8 million shortfall in 2008 but
leaving those roads unattended increases that shortfall exponentially in future years. In response to a
question about road longevity, Mr. Kersten said roads should last about 16 years; but that figure varies
depending on traffic load and truck traffic. He said that Appleway, Sprague, Dishman and Sullivan are
ten to eleven years old and should be good for another six, seven or eight years, but they won't last
without road preservation measures,and mentioned that the data in the packet material shows the funding
level needed for the next six years to keep the roads from having to go into reconstruction. Mr. Kersten
added that the idea is to update the Plan about every two years. The discussion moved to costs,grants, and
our matching portion to pay in connection with grants; as well we the preservation projects proposed and
completed over the last few years, as noted in the council packet materials. Mr. Kersten said that we
received very few grants for preservation over the last two years, resulting in higher shortfalls than
anticipated.
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City Manager Jackson said it is difficult to show the projects in rank order as various factors are at play,
including whether we received grants or if we have partnering opportunities, and when you do a new
plan, the roads get assessed at that time and what might have been a higher priority originally could shift
in rank order. Mr. Kersten said staff watch the roads and note which roads won't make it another year,
like the hill on Bowdish, and said if they hadn't fixed it last year, it would have had to be reconstructed,
and said there are several similar areas in the city; adding that one segment in one road could be worse
than a segment of another road. Mayor Towey asked if it is critical now to take a look at a different
revenue steam and Mr. Kersten replied it is if Council wants to fund this; that three years ago we were at
$4.2 million,and if we spent that in 2008 we would have been okay, but now we're looking at$9 million;
and that costs to keep that six-year plan keep rising, and again Mayor Towey said sooner or later, we will
have to get another revenue source. Mr. Kersten said that Spokane City funded $200 million in bonds a
few years ago and they can't begin to fix their streets; that their streets are now out of control because
they got so far behind they will never catch up; and said sooner or later we will be there too. Mr. Jackson
said that Finance Director Calhoun will talk about those potentials. Mr. Kersten said the plan for council
is to determine which way to go, and whether you want to fund this or not. Mr. Kersten recommended
the preservation funding option; and since this is an ongoing need, said we will need an ongoing,
permanent revenue source rather than try to grab money from other funds. Councilmember Hafner
suggested looking into that and said we owe this community good public safety and good roads and said
we are losing ground. Mr. Jackson said the telephone tax in 2009 was specifically for the street fund and
because of that tax, that fund is in good condition, and it covers such things as pothole repair, snow
plowing and maybe a little preservation, and said council authorized a one-time set-aside of$500,000
from that fund for preservation; and he said the street fund is not the sole source of funding for
preservation, and the lack of revenue is what is putting pressure on the system; he said we cannot squeeze
any more from the budget. Mr. Jackson explained that most cities can't fund all of this, but we are still
young enough and roads are still in pretty good condition, and that we can actually consider this issue
while most cities find it totally impossible. Mr.Jackson said$10 million is a number within the realms of
possibilities, while most communities need$100 million.
There was further discussion about the figures,the phone tax,the unfunded component and the continuing
raising need. Mr. Kersten said the issue is to determine how much revenue we think we can put together
to determine what we can fund. Councilmember Hafner agreed we cannot keep getting further behind,
and Mayor Towey said we have no revenue streams now and therefore the only alternative is to look
seriously at different revenue options. Councilmember Grafos suggested going back to the business plan;
that it shows a projection of 4% annual increase in expenditures and 2.3% increase in revenues and he
talked about changing that bottom line; he said last year the increase was 1% and he asked why it would
change back to 4%; and suggested keeping it at 1% and put in a line item for roads. City Manager
Jackson responded that is what we started doing; council directed staff to take 40% of the ending fund
balance over$26 million for just that purpose;that the business plan is a tool to use to look ahead;that we
can project 3.5 to 4% inflation but it doesn't change the reality of what actually happens each year; and
said we want to maintain enough fund balance in the future. Councilmember Grafos suggested just taking
a figure to help fund those roads, for example, $2 million from the general fund and see where we are and
see if we have a shortfall. Mr. Jackson said you would have a shortfall; you'd have to take $2 million
from services from the budget to compensate for that; and if you spend the ending fund balance at the rate
of$2 million each year, in ten years the city would be finally strapped; and said we realize an ending fund
balance of 15% is too low to help a city out of a financial crisis. Mr. Jackson said you need a recurring
revenue source; and said we will have a separate conversation about the ending fund balance later today.
At 12:10 p.m.the meeting recessed for lunch; and reconvened at 1:00 p.m.
To continue the discussion on street preservation, Mr.Jackson said if council still has questions about the
plan, the main thing is even if we significantly reduced what the consultant provided, it still leaves us
with a funding challenge; he said he would be happy to answer questions about the plan;that there will be
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difficult decisions to make and it will take further discussion to determine how best to fund our street
preservation; he said we have to have some confidence in the plan to have confidence in talking about
additional revenue sources, and that Mr. Calhoun had talked about some general funding sources to help
fund the street preservation. Mr. Kersten pointed out the core samples on the table and said that is what is
occurring on our streets and said therein lies the dilemma; and for just Appleway and Sprague we'd be
looking at $8 to $9 million and said those street are on the cusp, while others are going faster, including
the entire Sullivan Corridor; and said those are all fairly new roads and that staff recognizes those roads
were not being built quite right, but said he believes they have corrected future roads. Councilmember
Wick encouraged finding new technologies to help in the solutions to keep costs down; and
Councilmember Woodard mentioned the use of chip sealing. Mr. Kersten said WSDOT didn't have
funds for asphalt so they used chip sealing recently from 32° on State Route going south; and said they
ended up with a tremendous amount of complaints as it is very rough, and rock flies off; and said we
could do that if that is Council's direction; but he wouldn't recommend it. There was also some
discussion on the cost of bike lanes and stripping with plastic versus paint, and Mr. Kersten said that it is
Council's decision on how to prioritize this, and that staff will always recommend adding bike lanes and
sidewalks where it makes sense to have those.
Discussion turned to funding options and Finance Director Calhoun stated that these are just options with
no recommendation from staff on option preferences. Mr. Calhoun explained that some options are
linked directly to road preservation and some aren't; and any of the options would be a tax or fee increase.
Options Mr. Calhoun discussed included (1) a general B&O (business and occupation) tax up to 2%; he
said that it is fairly common on the west side and 38 Washington cities use that; that 2/10ths of a percent
would generate $3.4 million; the problem is it is a tax not collected by the Department of Revenue so it
would require additional staff to handle, and that the legislature is considering taking a portion of that tax
as well as others. (2) a variety of utility taxes; that we could levy a tax but can't levy the tax on income
earned in another district, such as an electric or gas district, that it could be as much as 6% or it could be
higher with voter approval; and for water, sewer and storm drain utilities, there is no limit. (3)
transportation benefit district: said this is attractive as a direct impact, and we could impose up to $20 per
car tab; that each$10 imposed would generate about$600,000 so we would anticipate about$1.2 million;
and that a $40 tab fee, which is what the legislature is considering to make available without voter
approval, would generate about $2.1 million annually. (4) street maintenance utility tax: the city could
create a utility like a water or sewer utility, and establish the rates to generate the necessary revenue that
was pre-determined by an established citizen group. Mr. Jackson said this is not being considered this
legislative session, but the additional tab fee and gas tax dominated the conversation with the street utility
not getting much support. Mr. Calhoun added that the anticipated $2.1 million would help, but not fully
cover our preservation problem.
Further discussion included mention by Mayor Towey of the idea of lifting the lid on the property tax;
with Councilmember Wick adding that the 1% property tax increase has not been used for the last two
years. Mr. Jackson said that amounts to about $100,000 for each percent. Mayor Towey said he felt
citizens don't notice an additional .02% on sales tax, but would notice an additional $20 car tab fee. Mr.
Jackson said these issues can be discussed further and Mr. Calhoun added that likely imposing one single
tax would not solve the problem. There was brief discussion about a TBD (Transportation Benefit
District)fee and/or a regional TBD, and Councilmember Grassel suggested the Finance Committee could
go over the study, adding that she is not in favor of any new tax or new fee increases council-manically,
but would rather have the issue go before the voters; and said perhaps the $10 million figure is the top
product and maybe we should only do a good job instead of a grand job; said she feels this needs more
study by those familiar with the entire budget, and have them come back to council; and said perhaps we
could find savings in other departments; and said she is not prepared to give a solution today; that the
issue is not just raise revenues but find savings. Councilmember Hafner reminded everyone of the $10
million still needed for the Sullivan Bridge; and Councilmember Grafos said before we look at revenues,
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we should look at re-prioritizing some budget items first. City Manager Jackson said the finance
committee meets on an as-needed basis; and one of the things Council will discuss when they discuss the
Governance Manual, is the function of the Finance Committee; and said the governance manual hasn't
keep pace with what that committee is actually doing. Councilmember Grassel also noted that perhaps a
half-day retreat could focus on just this topic.
3. CITYWIDE SURVEY—MORGAN KOUDELKA
City Manager Jackson said this is the second survey the city has done other than the original community
development survey, which was more related to SARP and planning at that time; he explained this was a
mail-in survey while the first survey was a phone survey; and said since most other jurisdictions use the
mail survey, it makes for easier comparisons. Senior Administrative Analyst Koudelka explained that
hundreds of cities have conducted the same survey; he mentioned page 91 which shows the percentage of
people who have a cell phone and no land line, and said the mail survey also contacts a greater range of
citizens; and said respondents tend to give more negative answers in a mail survey than a phone survey;
he mentioned the National Research Center recognizes these differences and the data shows comparisons
with this and the 2009 results, and have adjusted the figures to make it equivalent as if the last survey
were done by mail; he explained it was the 2009 and not the 2011 results which were adjusted. Mr.
Koudelka went over the survey explaining the margin of error of 5%, some of the aspects of the overall
data,the five options for answers, and the second report containing the"open-ended questions." Some of
the data has shown that in general people want more sidewalks, Appleway extended, potholes fixed,
streets preserved, areas cleaned up, a defined downtown, and slower growth, but don't want more strip
malls and don't want to lose the feeling of community. Mr. Koudelka said it was also obvious from the
open-ended questions that some people were answering as if they were referring to the City of Spokane or
Spokane County rather than Spokane Valley. Mr. Koudelka said the purpose of the survey was to identify
our strengths as well as areas that need improvement; that this helps us with our planning documents to
determine how best to use our resources, and will be used in our Business Plan as well. He also extended
thanks to our Public Information Officer Carolbelle Branch for her work on this survey, as well as that of
the City's Administrative Assistant Michelle Rasmussen. He said the plan is to conduct this survey every
year.
4.MISCELLANEOUS ITEMS—MIKE JACKSON
City Manager Jackson said this is a good opportunity to look over the remaining items on the agenda and
perhaps trim some items for future discussion; he said Council has discussed the Railroad Quiet Zone
opportunity; and we can discuss the e-mail process in the future, adding that the e-mail discussion and
citizen comment was also going to include a discussion about sidewalks; and that we could discuss this
now or at a later meeting. Councilmember Grafos said perhaps a good study session item would be to
discuss an ordinance or procedure to enforce the care of sidewalks. Concerning the animal shelter, Mr.
Jackson said that he and Mr. Koudelka have been meeting with County Commissioner Mielke who
indicated he would like to visit council to discuss this topic; and Mr. Jackson mentioned the vacated
building at 6851 E Trent Avenue and of Mr. Mielke's proposal to have us share in the cost of the facility
renovation. Mr.Jackson said we don't know whether the City of Spokane will participate; but the County
proposes we all pitch in; and said our portion would be about $900,000. Mr. Jackson said when council
discusses capital projects,we can add that potential. Mayor Towey asked about a regional committee, and
Mr. Jackson said that was not discussed recently; and said the County is exploring possibilities with the
owner. Mayor Towey remarked that the last time this issue was discussed, it was County-driven and we
were not included in the process; and suggested it would be better for planning purposes if we could be
involved early. Councilmember Woodard agreed and Councilmember Grafos said if the County moves
forward,they will need a zone change. Mr.Jackson said we can invite them to make a presentation before
council. At 2:28 p.m., Mayor Towey called for a recess. The meeting reconvened at 2:43 p.m. Mr.
Jackson suggested taking some of the remaining items out of order, allow about thirty minutes for
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brainstorming, then have Council move to defer the rest to a future council meeting. There were no
objections.
6.OLD MILWAUKEE—MIKE JACKSON,NEIL KERSTEN
City Manager Jackson explained that he and Mr. Kersten met with representatives from the County and
they are agreeable with us developing that into a trail; that they are all talking about what kind of a
transfer would be needed, whether an easement or other document; that they have not yet involved the
STA but he and the County agreed that is the next step; and said they set an arbitrary deadline of about six
months. Mr. Jackson said Commissioner Mielke asked if we would be willing to pay for any portion of
that,and Mr.Jackson reported that he told Mr. Mielke that he felt that was not Council's intent as the idea
is to have a facility available for all members of the community. Mr. Jackson said they will have further
discussion and it appears it is now more a question of exploring the elements of actually getting this done;
and said we are primarily looking for an easement; adding that it would be a Parks and Recreation and
Public Works Department facility responsibility.
8.PARK LAND ACQUISITION—MIKE JACKSON,MIKE STONE
Mr.Jackson mentioned that Library Board Chair Tim Hattenburg spoke at the January 10 council meeting
and presented their plan about purchasing the Pring property on Sprague Avenue. Mr. Jackson said that
he put together a team of his staff and they have been meeting with outgoing Library Director Mike Wirt
and incoming Director Doug Stumbough; that everyone is working to bring this idea together if this is
something Council wants to pursue, and that there are no apparent roadblocks in the ability for everyone
to work together. Mr. Jackson said they discussed the library's need for the facility, that they are looking
at about 50,000 square feet but could go to 60,000;they want about 242 parking spaces and want to make
sure they have a drive-through for pick-up and return; that they discussed shared parking and it depends
on how much parking is needed for each facility as both facilities would be open at the same times. As
noted previously, Mr. Jackson said the Library is working to put out a bond measure in 2015, and of
course the biggest unknown is whether that measure would pass. City Manager Jackson said he
recommends pursuing the acquisition on the basis the bond would be successful and once all is
completed, we would have an eight-acre park. It was mentioned there is also the possibility the bond
would not pass. Mr. Jackson said the library would like the City to put up the majority of the funds, and
said therefore the idea is we would purchase the property and the Library would pay the City about
$500,000, and we would give them the right to build on that property in the future. Mr. Jackson explained
the Library would need about two and one-half to four acres; that they have not completed a site plan or
determined how to share the parking; and if the bond were successful, they would pay us for the portion
of land they would need. Mr. Jackson added we would include the details in an Interlocal Agreement;
that he feels the Library is agreeable and if the City wants to pursue this he said it needs to be a success
because at that point,we would own the property. Mr. Jackson said we need to develop a site plan so we
all understand what a four-acre park could provide; that it would be combined with Balfour, but we need
to lay out the plan and determine whether four or eight acres is needed; and said between the Park Plan
and the Comprehensive Plan,there is support for the acquisition of additional property. Mr. Jackson said
we don't have a lot of people coming in telling us we should add park facilities, and in fact, have had
every few calls in that regard since our incorporation, since finding a place for people to recreate doesn't
seem to be a problem. Mr.Jackson said this issue depends on how Council wants to proceed; whether we
start to move forward or delay and get additional information; and if the idea is to move forward, we
would need at least a site plan and an appraisal, and then staff could bring this issue back for a motion if
Council desires. Mr. Jackson said we want to be prepared; that we are not talking about spending huge
amounts of money to do this; but rather come back and show how the park and the library might lay out
together.
Councilmember Woodard, said he feels Mr. Jackson is on the right track, and adding eight acres or just
four to Balfour is something that could be well used by our citizens; and said he would like us to move
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forward with an Interlocal and see if the bond passes. Parks and Recreation Director Stone said to qualify
for State Recreation Conservation Office funding, we would have to have our project completed by May
1, so the schedule for that is very tight; and that the state only offers those funding opportunities every
two years; and said we would have a project for the acquisition with the ability for retroactivity for some
reimbursement; but for this year, said he is uncertain he could pull everything together in three months;
and that the maximum from that Office is about $500,000. Councilmember Grafos said he feels we
should move ahead as quickly as possible. Mr. Jackson said even if that Office didn't fund the
acquisition, there is a possibility of funding the development; and said it is good to get these projects in
front of that Board; that staff can gather the information and write up a Request for Council Action form
for a motion to move ahead with the site plan and other needed preliminary steps. Mayor Towey asked
how this would be funded, and Mr. Jackson replied it would most likely come from the civic facilities
fund and not from the ending fund balance. Mr.Jackson said staff has looked at that ending fund balance
and recommends not using that fund; that we must be cautious until we come out of this economy; that
we don't know what will happen in the future or with the State budgeting issues; that we look ahead and
plan for the future and make sure we can maintain about 35%fund balance in ten years; and to do that,we
must also examine the funding for capital projects.
10. CAPITAL PROJECTS—MARK CALHOUN
Finance Director Calhoun explained that the listed projects will move forward; that some of these
advanced to a 2012 budget amendment and will come off this list as a result of that amendment; he
mentioned we talked about the animal shelter, potential park land acquisition and street preservation; and
added that his figures and data is a result of a Department Director group effort. Mr. Calhoun explained
that the projects are broken down between one-time cost and on-going cost like street preservation. He
said the Sullivan Bridge repair will keep coming back as we have only secured half of the needed $20
million for that project and will have to find a way to fund that project. Mr. Calhoun also noted that street
preservation for local streets and arterials is a problem which won't go away, but will only get worse. In
response to a question of how long the temporary bridge repairs last, Public Works Director Kersten said
probably four to five years, but it is unpredictable since we don't know if other problems or cracks will
surface; and said the bridge gets some extreme traffic loads, but he is hopeful the temporary repairs will
last before we get the new bridge built; and there was some brief discussion on funding possibilities for
• the bridge project; and mention of the need to include $2 million in city funds as our investment in that
project. Mr. Jackson added that all these projects add up quickly which is why we must be careful with
how we allocate our funds.
11.ENDING FUND BALANCE—MARK CALHOUN
Finance Director Calhoun brought attention to the reserves and the fund balance; said we anticipate
having $26.3 million after the 2012 budget; that as a measure of our recurring expenditures, this gives us
a reserve balance of 76%; and rhetorically asked how much do we really need in a general fund reserve;
and said the answer is,we need a reserve to provide cash flow and for operations; and if you think about a
general fund,that general revenues and expenditures keep general pace,but an exception to that would be
property tax; that there are about $35 million in revenues due in the assessor's office April 30 and
October 31; and said that each six-month time period blows about a $5.4 million hole in the budget until
those revenues come in about a month later; and explained that means we must set aside $5.4 million to
provide for cash flow. Another piece, he explained would be the monthly remittance from Washington
State for liquor profits; and said it is a timing issue to ensure we have cash in the bank at the end of the
month; that by the end of January the $1.6 million in revenues is not technically there yet; and putting
everything together means a need of at least $7 million in cash reserve, or 20%. On top of that, he said,
we need funds just to pay the bills; so it comes down to how much do you need to set aside for operations.
For some, he said one month is fine, while others prefer two months; and to be safe, we want between 8
and 16% reserve on top of the other reserve, or about $26 million total; and said that would be the
minimum to have a two-month reserve; and with$26 million instead of$12 million,there would be some
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excess but he is not advocating spending down the reserve as there are many unknowns; one of which is
recurring general fund and liquor board profits, in addition to streamlined sales tax, and the overall
economy. Mr. Calhoun said the economy is looking up in terms of sales tax as it appears we are doing
reasonably well; but in 2011 we were just slightly over the 2010 revenues, and those 2011 revenues
haven't been seen since 2005. Mr. Calhoun mentioned that other tax revenues like REET (real estate
excise taxes)have hit a new low in 2011; he said volume is up but values are down and we are not out of
the woods yet. Mr. Calhoun stated that the economy is not getting worse, but it is not getting substantially
better, and said he would argue for holding on to what we have; adding that he recognizes there will be
reasons in the future that will compel the policy setting body to use some of those funds, like perhaps
with the Sullivan Bridge.
City Manager Jackson said that state is proposing about a $1 million reduction but what they might
propose in future years is not known; they could propose something more or shift some services to the
city; and emphasized that budgeting is not just about one year. Mr. Jackson said we need to prioritize the
list of capital projects and determine how to fund what we prioritize, keeping in mind we will need funds
for the Sullivan Bridge. Mr. Jackson said he will be taking this issue to the Finance Committee which
might recommend using some ending fund balance for street preservation; or perhaps remove the railroad
quiet zone off the list. Mr.Jackson said we need to operate under a fiscal policy that when revenues reach
a certain point, that frees us to move on to the next project. Councilmember Hafner said we have to work
in the area of the funds we have, whether it be for bridge or road preservation; and do what is necessary
and needed versus doing projects that are not needed. Councilmember Wick said he would like to see the
City Hall project included on the list, noting the $200,000 was included, and Mayor Towey said we have
not been pursuing a new or used city hall which is why it was not included. City Manager Jackson said
we are still fairly young in terms of city years in existence; our revenue is fairly low per capital and our
business model is to run a very lean, efficient government; he said we must be careful about adding
services as those services come at a cost; and suggested we use the business plan so we don't find we
have strayed from our business model; and said we collect relatively low revenues from our citizens as
well; and that the phone tax raises$3.2 million at a cost to the taxpayer of about$1.20 a month.
12.BRAINSTORMING
The following represents the ideas brought forth during the brainstorming process:
Possible Goals for 2013: Councilmember Wick suggested "Pavement Preservation" to include
determining the funding source.
Councilmember Woodard suggested privatizing the Public Works Department similar to what was done
in Centennial, Colorado. Mr. Jackson said we already have quite a bit of that department privatized.
Councilmember Grassel added that representatives from Centennial, Colorado held a presentation at the
National League of Cities Conference last fall in Phoenix, and she explained that City looked into that
since they already contract about 50-80% of their services; she said they took about six months to
determine which was a better fit for them and they issued a bid and partnered with CH2M Hill; she said
they did keep a Public Works Director; she said their city is similar to ours in population and in size of
staff. Mr.Jackson said he understands they have a lower employee count per capital,and that he will find
out more about Centennial's change.
Councilmember Woodard suggested we look into what we can do and how to encourage more home
based businesses to form here; how to get them on board where they contribute to the sales tax; and to
make sure they are coding their taxes correctly. Councilmember Wick said that probably rolls into
economic development, and Director Hohman added that some work has been done by the Chamber in
this regard with their business incubator.
Retreat minutes:February 7,2012 Page 15 of 17
Approved by Council:February 27,2012
Councilmember Hafner suggested we have one employee to work on finding businesses, who would go
out and bring businesses into this area; to advertise that Spokane Valley is a good place to do business
and why;that it would be one employee with that sole responsibility. Mayor Towey agreed we need to do
a better job marketing our positive assets such as the River. Councilmember Grafos agreed and added that
we need as comprehensive list of all our assets in the valley and said many members of the general public
don't know if they're in the Spokane Valley or not; that everything is Spokane; he said GSI talks about
Spokane as does the Journal of Business, and said we need a marketing plan to make Spokane Valley
stand out. Councilmember Grassel said that could be part of the previously discussed committee. City
Manager Jackson agreed with the need to develop some specific messages about Spokane Valley as an
unlimited opportunity for businesses; and to put that on literature and brochures, and to repeat it over and
over and get the word out about Spokane Valley. Councilmember Grafos added that GSI's information
has everything except Spokane Valley, yet we are the ones "writing the check;" he said we need to tell
them what we want them to do for us, and we need to be more proactive as GSI works on their
publications. Councilmember Grassel said we just need to call Rich Handley and discuss our desires;that
things such as our State of the City Address should be highlighted on GSI's webpage; that we need to
separate and identify ourselves and said we should use GSI more; that they'd be happy to do that but we
need to approach them and ask that they advertise our events. City Attorney Driskell mentioned there is
also a mapping problem; that if you research our area you'll see Dishman, Opportunity, Trentwood, etc.,
but Spokane Valley is not on the maps, and said we need to be proactive by contacting those agencies to
get those maps updated. Councilmember Grafos said he noted the signs on the freeway are gone; that
he's not sure how that occurred, but we should contact WSDOT (Washington State Department of
Transportation) and get those signs put back up; and/or work to split the cost to get that accomplished.
Councilmember Hafner agreed we need to promote our image and ask ourselves why people go to Post
Falls or Coeur d'Alene instead of stopping here; that we need to portray we have the best education,
library system, etc. Parks and Recreation Director Stone added that if we move forward with the Sprague
land purchase and combine with the library, it would give us more of a community presence.
Councilmember Woodard suggested people want an opportunity to volunteer for some part of some
project; that concerning the possible land purchase with the Library, we could promote the area with
drawings so people would be ready for a 2015 bond election;that people want to have that feeling of civic
pride. Councilmember Wick suggested continuing the process of having a city hall. Councilmember
Grafos said we should examine adding buildings to the historic building list much as Spokane County and
the City of Spokane have done. Councilmember Grassel suggested looking into getting the word out in
the community by having a flyer or some type of notice in such things as bills from Vera, Avista, or
Modern Electric. City Manager Jackson said staff can look into that idea.
Councilmember Wick suggested we become a well-connected city by perhaps going into neighborhoods
to make sure every house has access to fiber optics; have a more forward-looking infrastructure.
Councilmember Grafos suggested finding a way to have the provider of park benches upgrade those
benches and add some bus shelters. Mr. Jackson said there is a future project in that regard; that that is
primarily the responsibility of STA (Spokane Transit Authority); that they had an opportunity for grants
and Mr. Kersten said there will be an upcoming "informational memo" in a council packet, including
maps. City Attorney Driskell said the benches are provided by a private company and we have a contract
with them that allows the placement of the benches; and that the company sells advertising.
Councilmember Wick suggested expanding our parkland. Councilmember Hafner said we need to
promote activities in our city and Councilmember Woodard suggested a farmer's market. Mr. Driskell
mentioned the idea of a "chalk art festival" and Councilmember Wick added the idea of a "painter's
park." Parks and Recreation Director Stone mentioned Greenacres also thought about having a monthly
farmer's market. Councilmember Woodard added the idea of having a community garden, said he realizes
there is a lot of work in that connection but no one knows how to get it started. Mr. Stone said the Valley
Retreat minutes:February 7,2012 Page 16 of 17
Approved by Council:February 27,2012
Partners were looking at the possibility of a community garden at Valley Mission Park; and said that
phase two of the Greenacres Park includes a community garden, and said these things and others such as a
pet park will be discussed further as we go through the Parks Master Plan. Councilmember Woodard said
the city of Richfield has a community garden with a nominal charge for use of the space, and the City
provides the water; that there are posted rules and the people take care of everything. Councilmember
Hafner said we still need to address the issue of businesses and their property concerning weed control;
and Mr. Driskell mentioned that will be discussed in the near future.
Councilmember Wick suggested we examine our largest contract, the public safety contract, for
efficiencies. Mr. Jackson said we can look at that; that we are trying to develop performance measures;
that we trust our Sheriff's Office and our Chief to provide quality law enforcement; that if we want to
look for efficiencies, we must fully understand the contract and how the contract works; that we have the
best property crimes unit in the region and this Council supports seven positions in the Valley Police
Department property crimes unit. Police Chief VanLeuven added that they are working on data for their
year-end report, and once he has that, it should give a better understanding of the significance of their
calls per officer per year and of the effective rate of solving crimes. Councilmember Grassel suggested
Chief VanLeuven also attend some of the Town Hall meetings to speak to the people and allow the free-
flow of questions; and said we could send out postcards to everyone of such meetings. Chief VanLeuven
said he attends several of those types of meetings now in conjunction with the Sheriff's Office.
Since it was apparent several items on the agenda would not be discussed today due to time constraints, it
was moved by Councilmember Woodard, seconded and unanimously agreed to amend the agenda and
move the agenda items that were not discussed today, to a future study session.
There being no further business, it was moved by Councilmember Wick, seconded, and unanimously
agreed to adjourn. The meeting adjourned at 4:10 p.m.
AT S , �/ r
Thomas E. Towe ,Ma or
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ristine Bainbridge, IF Clerk
Retreat minutes:February 7,2012 Page 17 of 17
Approved by Council:February 27,2012