2012, 08-28 Formal Meeting Minutes MINUTES
City of Spokane Valley
City Council Regular Meeting
Formal Meeting Format
Tuesday, August 28,2012
Mayor Towey called the meeting to order at 6:00 p.m.
Attendance: City Staff:
Torn Towey,Mayor Mike Jackson, City Manager
Gary Schimmels,Deputy Mayor Mark Calhoun,Finance Director
Dean Grafos,Councihnember Mike Stone,Parks&Recreation Director
Brenda Grassel, Councilmember John Holtman, Community Development Dir.
Chuck Hafner, Councilmember Lori Barlow, Senior Planner
Ben Wick, Councilmember Rick VanLeuven,Police Chief
Arne Woodard, Councilmember Cary Driskell, City Attorney
Steve Worley, Senior Engineer
Carolbelle Branch,Public Information Officer
Christine Bainbridge, City Clerk
INVOCATION: Pastor Jerry Sponseller of Opportunity Baptist Church gave the invocation.
PLEDGE OF ALLEGIANCE: Mayor Towey led the Pledge of Allegiance.
ROLL CALL: City Clerk Bainbridge called the roll;all Councilmembers were present.
APPROVAL OF AGENDA: It was moved by Deputy Mayor Schimmels, seconded and unanimously
agreed to approve the agenda.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS:
City Manager Jackson introduced new Spokane Valley Public Works Director Eric Guth, who Mr.
Jackson explained, was formerly with CH2M Hill for several years; he worked on the start-up team for
development of the fairly new city Centennial, Colorado and was on that City's Management Team, and
was also the Public Works Manager of Castle Pines, Colorado; he has a degree in Civil Engineering from
the University of South Florida and Mr. Jackson said we are fortunate to have him, and Mr. Jackson and
Councilmembers extended a welcome to Mr. Guth.
COMMITTEE,BOARD,LIAISON SUMMARY REPORTS:
Councilmember Woodard: said he has a "pet-peeve" with people pausing between "One Nation" and
"under God" while reciting the Pledge of Allegiance, and said there is no comma between the two
phrases; said he toured the SCRAPS facility; went to several Chamber of Commerce functions and said
he heard there is a concern that our Economic Development Ad Hoc Committee might be getting away
from its mandate; went to the City's entry audit where the members from the State Auditor's office
explained their auditing process; went to the Sunrise Rotary Club in response to them asking for a
member of Council to give a presentation on what's going on in the City, and said he distributed
information concerning our graffiti standards and who to contact in the City for various issues concerning
the budget, road preservation, and other City functions.
Councilmember Wick: reported that he participated in the Economic Development Ad Hoc Committee
meeting and said he is not sure where the concerns Councilmember Woodard mentioned are coming from
and he feels the committee is on track; that they have set up a process to identify stakeholders and he
welcomes feedback.
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Councilmember Grafos: said he went to the developer's conference with Councilmember Hafner and
Community Development Director Holtman who lead a'discussion about"certified sites."
Deputy Mayor Schinnnels: explained that the Washington State Department of Transportation(WSDOT)
held a state-wide human service transportation plan outreach and listening session in four different areas
in the State, and that they examine ideas of how to serve the public with transportation in some of the
outlaying areas; mentioned that Tacoma Screw Products was here a few weeks ago and said that they
appreciated our permitting office and our community development staff.
Councilmember Grassel: said she also participated in the Economic Development Ad Hoc Committee
meeting with Councilmember Wick and said she believes they are on track, and expects to bring a report
to Council in October or November.
Councilmember Hafner: explained that several of the Boards he's involved with were taking a break
during August; said he went to Leavenworth for a session by the State of Washington regarding budgets,
and said we should be pleased concerning our own budget and fund balance, and he expressed thanks to
Finance Director Calhoun for doing a great job; said he also attended the Developer's Conference; and
extended thanks to staff in the Public Works Department for the jobs they have done on our roads.
MAYOR'S REPORT: Mayor Towey reported that he also went to Leavenworth and attended several
budget workshops; he went to our City's entrance audit conference as the State Auditors explained their
process for their audit of our City; said he had his monthly meeting with Central Valley School District
Superintendent Small and Liberty Lake Mayor Pederson; and went to Gonzaga Law School for an
informational conference about heavy traffic, and he mentioned that the coal trains will be moving
through the Spokane corridor and they heard some pros and cons on that topic, as well as potential impact
on Spokane Valley.
PUBLIC COMMENTS: Mayor Towey invited general public comments;no comments were offered.
I.PUBLIC HEARING: 2013 Budget Estimated Revenues and Expenditures--Mark Calhoun
Mayor Towey opened the public hearing at 6:19 p.m. Finance Director Calhoun explained that this is the
third occasion to present information on the 2013 budget, set for final adoption October 23, 2012; that
tonight is a prelude to the City Manager's preliminary budget presentation of September 11. Mr. Calhoun
reminded everyone that the information sheets are worksheets and the budget figures are still in transition.
Councilmember Hafner asked about the drop in fines and forfeitures and it was explained that the traffic
school was initiated last year which gives citizens the option to attend school instead of paying a traffic
fine, In response to a question from council about the contingency fund and settle and adjust funds, City
Manager Jackson explained that we previously had a million dollars in the public safety budget to cover
settle and adjust; but as part of our cost reduction since 2010,we have removed most of that amount from
public safety and in lieu of that, we have a $350,000 contingency; he said if we ever need to use that
money the issue would come back to council for review; and said if we ever spend all of our recurring and
nonrecurring expenses, which will not happen, that would result in a deficit; and said the alternative
would be to remove the contingency and if needed in the future, make a budget appropriation. Mr.
Jackson said previously the finance committee and last year the Council adopted that contingency.
Finance Director Calhoun continued his explanation of the budget and said the projected budget for 2013
is$25,371,000 as noted on page 2 of his handout.
Councilmember Grafos said that except for a couple items, the budgets for each department are identical
to what was proposed in June; he said he assumes the wage and benefit portion of the budget is projected
at the $8,400,000; which was the number given to council in June; and he said at that time there was a
discussion to use $8,156,000, which was what Councilmember Grafos said was assumed was the actual
number, and to use that figure plus 1%, which he said makes a difference of about$232,000; he said the
1% property tax levy is included in this budget, and asked at which point would Council ask to remove
that. City Manager Jackson said that staff always takes direction from Council, which was the purpose of
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the retreat, but the preference would be for staff to deliver that budget to Council on September I I, that
way Council will have a clear perspective on staffs recommendation; and afterwards, have any
discussion Council would like and at that time staff would be happy to make adjustments per Council's
direction. Councilmember Grafos also asked about having a line item with 6% in the general fund. Mr.
Jackson replied that can occur if that is Council's direction at the time of the budget discussion; and said
that during his presentation September 11, he'll walk council through the impact; and said as was
discussed at the retreat, staff provided Council with a 3, 6, and 9%reduction scenario; and said September
11 he'll show Council what the impact would be of making further reductions to the operations budget;
that based on staffs proposal, staff was able in a very prudent way to find an amount equal to 6% of the
general fund, and as he'll explain September 11, which will also be sustainable for four years, at which
time it will be only partially sustainable, and then we would have to look at additional revenue sources.
Mr. Jackson said obviously Council can further reduce the general fund budget, but that he hopes to
demonstrate September 11 that we are running very lean and with the workload we hope to accomplish in
2013, it would be difficult to make additional reductions. Mayor Towey invited public comments; no
comments were offered and Mayor Towey closed the public hearing at 6:42 p.m.
2. CONSENT AGENDA; Consists of items considered routine which are approved as a group. Any
member of Council may ask that an item be removed from the Consent Agenda to be considered
separately.
a.Approval of the following claim vouchers:
VOUCHER LIST DATE VOUCHER NUMBERS; TOTAL AMOUNT
08/09/2012 26646-26704;731120181; 806120007; 807120124 $882,098.98
08/21/2012 4040-4043; 26705 $62,424.82
GRAND TOTAL 5944,523.80
b.Approval of Payroll for period ending August 15,2012: $278,520.01
c. Approval of Minutes of August 14,2012 Regular Formal Council Meeting
It was moved by Deputy Mayor Schimmels, seconded and unanimously agreed to approve the Consent
agenda.
3. First Reading Proposed Ordinance 12-021, amendment to Spokane Valley Municipal Code 19.120,
Animal Shelters in Corridor Mixed Use Zone—Karen Kendall
After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Schimmels and
seconded to advance Ordinance 12-021 to a second reading. As Assistant Planner Kendall explained the
proposal, Mayor Towey asked for clarification that if this change is approved, that it would bypass the
Hearing Examiner process; and that this change would be a decision throughout the entire City Limits.
Assistant Planner Kendall concurred with the Mayor's statement, and further explained that a Conditional
Use Permit would be the avenue for using the Hearing Examiner whereby additional conditions could be
imposed upon the specific proposal, but that this is not a site-specific proposal, but would in fact, be
applied throughout the City. After Ms. Kendall's presentation, Mayor Towey invited public comment.
No comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion
carried.
4.Motion Consideration: Setting 2013 Budget Hearings—Mark Calhoun
It was moved by Deputy Mayor Schimmels and seconded to set the 2013 budget hearing dates for
September 25 and October 9, 2012. Finance Director Calhoun explained that this would keep us on
schedule to adopt our budget at the October 23 council meeting. Mayor Towey invited public comment.
No comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed.. None. Motion
carried.
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5.Motion Consideration: Emergency Management Interim'Agreement—Cary Driskell
It was moved by Deputy Mayor Schimmels and seconded to authorize the City Manger to execute the
I terlocal Agreement for Emergency Management as presented. City Attorney Driskell explained that
Deputy Director of Emergency Management Services Tom Mattern is also here tonight should Council
have any questions of him; said that this interlocal represents the end of a very long process; he explained
some of the functions and purpose of the Department of Emergency Management Services, and said if we
determined not to enter into such an interlocal agreement, we would be mandated by law to handle this
ourselves. Mayor Towey invited public comment; no comments were offered. Vote by Acclamation: In
Favor: Unanimous. Opposed:None. Motion carried.
PUBLIC COMMENTS: Mayor Towey invited general public comments; no comments were offered.
ADMINISTRATIVE REPORTS:
6.Memorandum of Understanding, Gateway Improvements—Cary Driskell
City Attorney Driskell mentioned the draft in the council packet and the one distributed tonight in track-
change format, and explained that staff felt that some changes were appropriate to propose to the other
partners. As noted in the Request for Council Action Form and the Memorandum of Understanding, Mr.
Driskell gave the history of this document and explained the proposed changes. Council had no objection
in staff moving this forward.
7.Lodging Tax—Mark Calhoun
Finance Director Calhoun explained the background of the lodging tax funding award process, and of the
schedule for the next round of funding; that he anticipated the 2% tax would generate $460,000 in 2013,
and as the budget is currently prepared,that entire amount would be appropriated,which includes$30,000
for CenterPlace advertising; and said the Lodging Tax Committee will make the initial funding allocation
recommendation to Council and Council will ultimately make the awards at the December 11, 2012
Council meeting. Mr. Calhoun also noted that beginning July 1,2013,the law changes and as of that date,
funds will only be able to be used for marketing purposes. Councilmember Woodard asked if the City
might be able to use some of these finds for way finding signs, and Mr. Calhoun said he will need to
research that question. Other questions arose concerning how the funds might be used, such as for
creating a Jazz Festival, and Mr. Calhoun remarked that the funds must be used as a draw for tourists.
Concerning the schedule,Mr. Calhoun stated that scheduling is always a challenge as there must be a gap
of 45 days between the committee meeting to the actual award of funds. Further discussion ensued
regarding the idea of setting aside a set amount for the City's use, such as those way-finding signs, with
City Manager Jackson stating that we could always award those funds in the following year; and Mayor
Towey suggesting staff research the regulations to determine how the City might be able to use such
funds. Finance Director Calhoun added that funds could be carried over to the following year and do not
need to be immediately allocated to any specific project.
8.Advance Agenda—Mayor Towey
Councilmember Woodard asked about the status of the sidewalk infill project at Adams to Sullivan and
24th. Engineer Worley said that project is planned to go out to bid either next week or the following
week; he said it took longer than anticipated to get permissions from all the adjoining property owners to
have access onto their properties in order to build the sidewalks; and said we now have that and should be
out to bid in a few weeks. Councilmember Grafos said the project on Sprague from Argonne/Mullan to
Park Road is scheduled in the pavement program for 2013 or 2014 for a grind and overlay; that it took
about eighteen months to get the Swale project from Park Road to Thierman underway; and said that area
from Argonne/Mullan to Park Road is important as a huge amount of our revenues come from those car
dealers; and said he'd like to get some of that engineering started; and mentioned a previous discussion of
allowing street parking for the south side of Sprague Avenue and suggested staff look at some grants as
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part of our road preservation funds. Councilmember Grafos also mentioned the stormwater and swales on
Appleway and the idea to do beautification and mentioned the swales from Thierinan to University City;
he said with the City's 10th Anniversary coming up,this might be a project to consider; and said he'd like
to see where our priorities are for those projects. City Manager Jackson said staff could generate a report
and include those projects in the context of the other projects on the preservation plan. There were no
objections from Council. Councilmember Hafner asked about the status of the car shows and Mr.Jackson
said Parks and Recreation Director Stone will bring a report to Council.
CITY MANAGER COMMENTS:
City Manager Jackson said $75,000 was initially set aside for economic development in 2012, and
originally those funds were to be used for an economic development plan; he said through Council
discussions at the retreat and other meetings, it was decided to put together our own plan and create the
Economic Development Ad Hoc Committee, In the meantime, Mr. Jackson said those funds are mostly
intact; and said staff proposes to issue an RFP (Request for Proposals) for an advertising firm to begin
promoting and advertising a City identity, that there now exists about $69,400; he said such a consulting
firm would advertise why we are a premier location for economic development; and said he would Iike to
start moving that project. There were no objections from Council.
There being no further business, it was moved by Deputy Mayor Schimmels, seconded and unanimously
agreed to adjourn. The meeting adjourned at 7:23 p.m.
I
I.—'rte (` 0 ,-•"'
T omas E. Towdy,Mayor
A
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hristine Bainbridge, City Cler 11
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