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2013, 02-26 Council Workshop MINUTES SPECIAL WORKSHOP MEETING SPOKANE VALLEY CITY COUNCIL City Council Chambers 11707 E. Sprague Avenue Spokane Valley,Washington February 26,2013 8:30 a.m. Attendance: Councilmembers _ Staff Torn Towey,Mayor Mike Jackson, City Manager Gary Schimmels,Deputy Mayor Cary Driskell, City Attorney Dean Grafos, Councilmember Mark Calhoun,Finance Director Chuck Hafner, Councilmember(arrived 8:50) John Hohman, Community Development Dir. Rod Higgins, Councilmember Eric Guth, Public Works Director Arne Woodard, Councilmember Morgan Koudelka, Sr. Administrative Analyst Ben Wick, Councilmember Mike Stone,Parks&Ree Director Erik Lamb,Deputy City Attorney Michelle Rasmussen,Administrative Assistant Others in Attendance: Rick VanLeuven,Police Chief Mike Huffman,Valley News Herald Carolbelle Branch,Public Information Officer Nina Culver, Spokesman Review Chris Bainbridge,City Clerk Tony Hansen,Lodging Tax Travis Trump, Quality Inn About six other members from the Community Mayor Towey called the meeting to order at 8:30 a.m. and welcomed everyone. Following self- introductions, Mayor Towey said that this is an informal meeting for information rather than debating; and that any items we don't get to today can be added to a future agenda. City Manager Jackson said that today is an opportunity to freely and informally converse as we work through the agenda items. He added that we will be will be speaking with our legislative lobbyist Briahna Taylor at approximately 9:00 a.m. as there has been a lot of development on several issues such as lodging tax. OVERVIEW: Tab A: Council Goals/Work Plan Mr. Jackson said that the annual Work Plan is not static; the timelines are general; the 2013 Council budget Goals are included and throughout the plan, the goals are assigned to different departments; he said he won't go through all the details, and asked Councilmembers if they feel something is missing, to please bring those items to staffs attention. Tab B: Legislative Agenda Although members of Council were recently in Olympia, Mr. Jackson said he felt we might want additional discussion on some of these topics; said we are requesting $4 million to help fund the replacement of the Sullivan Bridge; we want to protect local and state shared revenues; and that we are trying to re-coupe code enforcement costs by proposing legislation dealing with the ability to place liens on property, and City Attorney Driskell explained said that we feel this would be a good tool to pursue in abatement issues as it would give us the same authority as the County in terms of lien priority. Concerning the last item on the legislative agenda, Mr. Jackson said this would increase the threshold for substantial development permits under the Shoreline Management Act, and said we don't have many opportunities for additional docks in the valley; that overall proposed bills change as they develop and this particular bill is more about promoting community versus individual docks. Mr. Jackson asked Workshop minutes:February 26,2013 Page 1 of 10 Approved by Council:March 26,2013 Council if they have any insight from their Olympia trip. Mayor Towey said it was the first time in three years where they had such a positive reaction; said they met with State Representatives and Senators as well as with the Transportation Chair; and he extended thanks to our legislators for doing the preliminary work. Councilmember Woodard agreed and said he feels the issues were well received. Mr. Jackson said Council sent a letter of support to keep the decision process to actually implement any of those revenue generators to the community, as we recognize cities can't provide all the infrastructure needs; he said we work very hard to provide local preservation needs through the existing budget, but major projects like bridges can't be funded alone by cities; he said we still currently need $4 million of the original $19.8 million total needed for the Sullivan Bridge; that this project will go out to bid in November and the timeline is critical.Mr. Jackson gave credit to Pubic Works staff for the funds they have raised so far. Final 2013 Business Plan Mr. Jackson said that Administrative Assistant Michelle Rasmussen does the majority of the compilations in this Plan; that he and Finance Director Mark Calhoun feel that now is the time to start preparing the 2014 budget calendar as well as a 2014 Business Plan; he said this is a working, administrative document; that after a budget is approved, staff comes back to the Plan to ensure it is aligned with the just-adopted budget; and once complete the PIan is published on our website. Mr. Jackson said this is a document for everyone; that it describes the services we offer; that we all know we "run a very lean ship" and have a tight budget;that we carefully weed-out programs that are not effective or absolutely necessary. He then brought attention to page 16's financial forecast, accomplished through educated assumptions and use of 3% inflators. Finance Director Calhoun further explained that this is not our prediction of what will happen in the future,but rather is based on revenue and expenditure assumptions to use as a starting point, and as time goes on the figures will change; he said there is a $17 million presumed reserve balance for the end of 2013, with that dropping to about $14 million the end of 2017; he said that would represent about 37% reserves, and he said we will make sure it will not drop below the 50% fund balance as discussed last year. Mr. Jackson added that the "reduction" column shown throughout the Plan, with the 3, 6, and 9% reductions, are part of the business plan and keep us aware of services based on shifts in economy; and having those flexible figures represents a good exercise in helping project future needs and services. Moving to page 63 of the Plan, Community Development Director Hohman discussed the organizational chart,which he said is as a result of his review last year of his department,and that they are in the process of filling those positions; he said the main change is refocusing efforts on commnercial building permits and providing that service on a very efficient team approach; he said with this change we are well on our way to having a unique structure for permit handling. Returning to Tab B Legislative Agenda, Mr. Jackson explained that the City has not weighed in on the proposed changes to the lodging tax regulations; that there are two thought processes: funding things like the HUB versus having the focus on heads in beds. It was explained that some of the proposed changes in the legislation include language allowing for funding for marketing and operations of special events and festivals designed to attract tourists; to change the definition of tourist as someone who stays overnight in paid accommodations, fifty miles or more from their residence; and to include that the local jurisdiction may only choose recipients for funding from the list of candidates provided by the local lodging tax advisory committee. Mayor Towey expressed concern about the benefit of mandatory disbursement of funds and questioned if it would be legal for a non-elected body to determine distribution of tax money; that he feels this Council should have the last say on how much and to whom funds are given. Councilmember Grafos agreed as did Councilmember Wick, who suggested Council remain neutral but be kept appraised of changes. Workshop minutes:February 26,2013 Page 2 of 10 Approved by Council: March 26,2013 The following information is from the telephone conference call with Lobbyist Brialna Taylor: Ms. Taylor explained that last Friday the Policy Committee met and heard the City's top priority of funding for Sullivan Bridge; she said there was a lot of conversation about a transportation revenue package and the issue of funding for Sullivan Bridge; this last week there was discussion by some on what is meant by a transportation revenue packet and several options were offered, including a$25 fee on bicycles that are over $500, and partially bonded capital projects; all of which she said is very different from the nickel package and nine cent gas tax increase — both of which were fully bonded. They also discussed how revenue is spent with an estimated $116 million remaining unallocated, and she said the Sullivan Bridge project would be included in that amount. She said they discussed funding for the North/South Freeway, which she explained is a main "mega project" listed in the proposal; and said the reaction from the Republican Party was to work on more reforms. She said the Governor said he wanted to work with the legislature on some things that could be improved. Another component was a piece of legislation that changes the Transportation Benefit District status to allow the imposition of a $40 tab fee whereas current law only allows up to $20 without going to the voters. Concerning shared revenues and bill 1368, said she testified in support of the bill in that committee; she said liquor revenues will face an uphill battle in the fight to restore local liquor revenues, which would be revenues that would otherwise be allocated to the State; she said it passed to the House committee but won't pass out of that committee by the deadline, but she noted that the bill is not tied to cutoff deadlines. Regarding code enforcement and the legislation concerning liens, the Senate version passed out of the Senate with a 46 Yes vote and the remaining excused, so there were no Nay votes; she said it moves to the House to be ready for a hearing after the chambers finish voting on bills on the floor. She said it is important that the House version moves forward,and that she doesn't anticipate any problems with the bill on the floor. Concerning the lodging tax proposed legislation; she said there are several bills on this issue, two of which were brought forward by AWC (Association of Washington Cities); she said the bills are moving forward but are going through significant amendments; one of the bills is subject to be voted on by the Senate Ways & Means Committee this week; the Policy Committee made several change proposals; and Ms. Taylor discussed the section concerning whether festivals should continue to be eligible to receive funding; she said the way funding is to be distributed is also being altered; and in cities with populations over 5,000, the Lodging Tax Advisory Committee (LTAC) funding recommendations must be accepted by the local jurisdiction, and that funding can only be awarded to the select list of recipients from the LTAC. She explained that the definition of"tourist" is also being modified. Ms. Taylor said the Senate version continues to be worked on and in the House as well, but is scheduled to be voted on by the end of this week. Ms. Taylor said it is her understanding that our City has no position on these bills but would like her to monitor the bills' activities. Mr. Jackson asked if there was any discussion about non-elected officials designating tax dollars and Ms. Taylor said that the argument is different in each community concerning which funding procedure would be best for their individual community; she said hoteliers don't always feel they have adequate representation; and concerning non-elected officials designating tax dollars, said she feels the Legislature can do that and that it doesn't strike her as unconstitutional. After brief discussion concerning some of the facets of the bill and proposed changes,Ms. Taylor said we likely won't know the outcome of the proposed changes until the end of April; that it is likely to be negotiated up to that point. Mr. Jackson said we will discuss this further as Council works out a more formalized process for distributing funds, and will also have to wait until the bill's final determination the end of April. Mr.Jackson and Council voiced their appreciation to Ms. Taylor for her comments. Discussion turned to funding methods and Mayor Towey said we go through a struggle each year from small agencies asking for funds,to large tourist agencies asking for funds; and said he feels it is unfair for example, to have the Museum compete with Visit Spokane; and said we need a system to allocate funds to ourselves, perhaps by percentages; or put the various entities into separate categories, and award funds based on the percentage of awards in the past; and Councilmember Hafner agreed with that suggestion, adding that we need to look at local needs, regional, and then city-direct. Councilmember Woodard said Workshop minutes:February 26,2013 Page 3 of 10 Approved by Council:March 26,2013 that he has been deemed in the past, as not being a friend of Valleyfest, and said that is who Council argues over each year; he said he thinks Council will agree that Council supports Valleyfest and that we want Valleyfest to become the next triple-A festival that brings people in numbers greater than the currently 30,000 or 40,000; and suggested having a line item in the City's budget for Valleyfest in an effort to wean them off the lodging funds over a three or four year period; he said he feels they are getting way out of proportion of what they are actually doing; that we need to get more businesses to support them and wean them off our tax dollars; to force them to go out and get more public support and if the community isn't supporting them, he said that should tell us something; but that he feels 30% of their budget,which is what the Lodging Tax Funds gives them, is way out of line; and again suggested the City include a line-item in the City's budget for Valleyfest. Mayor Towey said we must be very careful and not put any outside agency as a line-item in our budget; that there are many good agencies out there who have a positive impact on our citizens; and by putting them in the City's budget, diminishes the incentive for them to seek funds from the community; and said it should be a community effort, and we should be evaluating and supporting all agencies who do good work in our Community. Councilmember Hafner added his concern with putting a non-profit agency in our budget. Councilmember Wick said that the fund used to allocate monies to outside agencies and economic development agencies is constantly under pressure; he asked if we add a line item in our budget,where would we make a corresponding cut; he said everyone wants stability; that what we funded for the HUB in June was for their operations; and that opportunity will be going away; he said how we fund these agencies is dramatically tied to what the legislation collies up with; and said he is not sure lye's on board with having higher taxes at this time. Mayor Towey said Council wouldn't be able to make a decision until the legislation session is over;that we have to start recognizing those agencies that only do tourism, and separate them from agencies that attract tourism from outside; and put them into categories. Councilmember Woodard said he was just voicing an option; that hoteliers are self-taxed; and that he was trying to give some ideas to give Valleyfest certainty and wean them off government tax dollars. The question was raised whether or not Council wants to support either lodging tax bill. Mr. Jackson said there are obviously two strong views, which is why our Council decided not to weigh-in in the past; that the idea is to award funds in such a way as to replenish the funds;that we can award funds to other agencies that support tourism like wining and dining as part of the effort to develop a name for ourselves where people want to come; that it is not necessarily only equated with room nights; and said the current legislation doesn't require a direct correlation of an over-night stay; and again the question was posed, do we want to weigh-in, or just track these bills. There was discussion among Councilmembers; some felt parts of the bill would have a negative impact on cities; comment about the inability to actually gather data on tourists who just shop and eat and don't stay overnight; that entities such as the HUB need to stand on their own and it is Council's responsibility to allocate funds using Council's best judgment, not just keeping the same percentage each year; the idea of allocating some funds for future needs, such as a visitor center; the need to protect the flexibility in allocating funds, and that Council should have the responsibility of allocating funds, not the members of the Lodging Tax Committee. Deputy Mayor Schimmels suggested remaining neutral. At 10:23 a.m.,Mayor Towey called for a break;the meeting reconvened at 10:40 a.m. 1) City Funding Opportunities/Outside Agency/Lodging Tax—Mark Calhoun Finance Director Calhoun said that he will have more information for Council the end of April once we know the Legislature's position on this issue. Mr. Calhoun said another issue for discussion is whether Council has a preference on hearing from agencies at times other than during grant opportunities. Mr. Jackson added that sometimes we get a request from an agency which has received funding from us, and that they would like to report to Council on their group's activities; he asked what would be a fair way to do that; said we could make that option available to every agency, or let them know we only accept presentations at the time of the grant application, or permit annual reports, or any other options. Workshop minutes:February 26,2013 Page 4 of 10 Approved by Council:March 26,2013 Councilmember Wick said while he appreciates hearing from agencies, he doesn't want each opportunity to present, to turn into an opportunity to solicit additional funds.Mayor Towey added that sometimes full agendas make it difficult to fit things in, and while it is good to spend time accepting presentations, he feels having the material as an informational item included in the packet might be the better option; keeping in mind a live presentation is different from an informational item, and also that time is valuable. Deputy Mayor Schimmels agreed to have reports included as informational items and keep the presentations to those times when the funding presentations are all made. Councilmember Woodard suggested that for some of the larger agencies, citizens might like to know how those dollars are spent; that the paper report is good, but it is also good to hear from some of the funding recipients. Councilmember Hafner suggested having quarterly informational reports or in-person semi-annual reports. Mr. Calhoun said in these cases, a formula would make it predictable for all involved, and he reviewed Mayor Towey's previous formula for the most recent past allocation of funds for outside agencies. Mr. Jackson said as we move closer to the time when we allocate lodging tax funds, Mr. Calhoun will come forward with an outline of a proposal based on previous year's models. 2) Business Route Signage—Eric Guth Public Works Director Guth briefly went over Sprague Business Route signage and what has been accomplished to date, as well as the schedule leading to actual sign installation,which is slated for July or August, and said we anticipate staying within the $60,000 figure budgeted. Mr. Guth said the sign design was approved by WSDOT(Washington State Department of Transportation), and the application is being processed so at this point, there is no concrete update; he mentioned that the matter must be brought before AASHTO (American Association of State Highway and Transportation Officials), and that they only meet twice a year, with our hearing scheduled for March. Mr. Guth said as more information becomes available,he will keep Council informed. 3) Manufactured Home Zoning—John Hohman; Cary Driskell Community Development Director Hohman summarized the City of Tumwater's manufactured home park zoning ordinance as noted in the council packet material, as well as use exceptions contained in Tumwater's Municipal Code 18.49.070. Mr. Hohrnan explained that in order to implement a similar code, we would need a comprehensive plan amendment, and these issues would need to be included in the goals and policies.It was mentioned that some of Tumwater's parks were not included in the regulations due to several facets, such as the small size of the parks, and that the owners own all the dwellings located on the properties; and that another park was excluded because it is currently the only manufactured home park within Tumwater that is zoned General Commercial. City Attorney Driskell explained that as a result of the decision of the 961 Circuit Court of Appeals, it was suggested that we adopt the Tumwater Ordinance; however, he explained that that particular ordinance is upheld as Constitutional but said it was a close decision as plaintiff's didn't show substantial economic damage, and said the Court tried to make it clear their decision was based on facts before it, and that different circumstances could possibly result in different results; that just because Tumwater received an "okay" from the court is not a "green light" for us to proceed, as it could still result in a lawsuit. Mr. Jackson asked Council if they want to pursue this type of zoning, or fundamentally support the concept, and if so, we can have further future discussions. Councilmember Woodard suggested there is a need to look at affordable housing and decide how to zone these, or perhaps have a change in densities. Mayor Towey said he didn't know if it is this Council's responsibility to dictate what property owners can do with their land, and said we still have not heard from those landowners; and that he would like to hear from both sides of this issue. Councilmember Grafos agreed that it is not this Council's responsibility to dictate what property owners do with their properties, but suggested that Mr. Hohman provide a reasonable mobile home zone with increased density, perhaps through the comprehensive plan; and Councilmember Hafner agreed Council needs to know all the facts. Workshop minutes:February 26,2013 Page 5 of 10 Approved by Council: March 26,2013 Director Hohman said that Chapter 5 of the Comprehensive Plan deals with housing, and this along with Chapter 2 are in need of updating; he said we are mandated to have that update by another four years, and that he and Mr. Jackson discussed putting together a schedule to bring this forward for an update;but that it will take some time to lay out the process and get a feel for the amount of work involved. Further discussion included mention of restrictions on property owners and what that might do to financing abilities; whether the Tumwater ordinance gives greater security; if a property owner wanted to buy out the individual parcels and the subdivision process that would be needed for that option. Councilmennber Woodward said that since we last heard from the"green shirts"group,a park received an offer to sell, and that particular sale do not go through, but the park owner is in negotiation for each trailer owner to buy their parcel. Mr. Hohman explained that nothing prevents the residents from being owners of the larger parcel, and they could even create something similar to an LLC (Limited Liability Company). Mr. Jackson proposed that Mr. Hohman look at the Comprehensive Plan and the City Code and bring back suggested ways to address this other than developing a zone with limitations on what property owners could do with their property. Mr. Hohman said staff can work within the context of the comprehensive plan, specifically chapter 5, and can bring an overview of what it would take to update that; and bring all the components together, including chapter 2. Council agreed that would be a good place to start. Prior to taking a break for lunch, outgoing Fire Chief Mike Thompson introduced incoming Fire Chief Brian Collins, who will assume his duties March 1, 2013. Mr. Jackson invited Chief Thompson and Collins to join staff and council for lunch. The meeting stopped for a lunch break at 11:45 a.m. The meeting resumed at 12:30 p.m. 4) Solid Waste--Mike Jackson; Eric Gutli; Erik Lamb; Morgan Koudelka The topic of solid waste was discussed extensively, with the following highlights: the deadline to respond to the RFQ (request for qualifications) has been extended one week past the 28th as at least one firm indicated they needed more time to respond. Mr. Jackson said we will have multiple decisions to make concerning this topic; that it is extensive; that we will want to explore alternatives for such things as collection, disposal, a solid waste plan, and solid waste programs; and he asked Council to keep in mind that there is currently no line item in our budget for solid waste, and we have no staff responsible for solid waste; he said Waste Management and Sunshine Disposal work through the WUTC (Washington Utilities and Transportation Commission) and we are mostly "hands-off' and they don't come to us for rate increases. He mentioned that our collections agreement expires March 10, 2015. Concerning those agreements, Deputy City Attorney Lamb explained that collections are governed by the WUTC, and that includes rate setting, public hearings and safety issues; that when we incorporated we were given the option to have authority for rate setting, but had to give seven year's notice; he said we entered into a franchise agreement which maintains the status quo,and everything continues to be handled through the WUTC and will continue to do so until March 10,2015.He said the purpose of the agreement is to compensate the haulers. Mr. Jackson said what staff is trying to consider is, when do we start discussions about collections; that some options include contracting out for collections only, disposal, and the topic of transfer stations. Deputy Attorney Lamb said when the agreement expires, there is not an automatic seven year renewal; he said that seven years is generally not sufficient; that it becomes a negotiation item; since we gave notice in 2008,that would not be incorporated into those discussions; and that the end of the seven years would be the end of the current franchise and we would need to determine which way to go and what compensation, if any,would be given to the haulers;that regarding collections, if we do nothing it might extend the franchise or revert back to our pre--notice and then we'd have to re- start the seven year clock;the said "measurable damages" is defined if the injury of the loss would be the loss of the certificate to operate, and again explained that becomes a factor for negotiation. He said if the process were to become deadlocked,we would look to court proceedings. Workshop minutes: February 26,2013 Page 6 of 10 Approved by Council:March 26,2013 Other solid waste discussion included mention from Mr. Jackson that today's discussion is very general with the intent of not drawing conclusions on which direction to take. There was general discussion on collections from Waste Management and Sunshine, transport, disposal, long haul and associated costs, flow which by contract goes to the Waste-to-Energy Plant; ash and bypass from the system; tonnage and the amounts which go to the Spokane City transfer station and north side; other services provided by the current system such as education and outreach; and that as a result of having heard that Mr. Gimble asked all departments to provide a work plan, there are about twenty-five different plans; what course of action to follow; that some program components are legally required; and that option 3 appears to be an option still available to our city. It was also mentioned that the life span of the Waste-to-Energy PIant is about ten years; that the scope of services has been extended for one week past February 28; operating costs and per/ton costs were discussed as well as essential public facilities requirements; with Mr. Jackson stating that our City is not required to go through the process, but we agreed to the County's process as we fall under the same requirements; that the County is issuing the RFQ (request for qualifications), and in his discussions with Commissioner French, our City and the County are partners in this, but that the agency issuing the RFQ is the responsible entity. Mr. Lamb also discussed landfill closure and the associated concerns such as ground water contamination, monitoring and testing; ongoing maintenance, caps, how much we paid for closure; what we generate in waste; and agreements entered into through the EPA (Environmental Protection Agency)and DOE(Department of Ecology)to go through the closure process. Further topics mentioned for consideration included mandatory collection and all the associated impacts; that tonnage goes down as recycling goes up; utility tax; contracting out for some requirements including billing and collections; have everything in-house, rate setting; fees associated with this service and that such fee is not a tax and whether fees could be used for street preservation; with the new rate it would be a good opportunity to assess the impact of the increase and compare what we pay to what citizens around the County pay; audits performed by the WUTC; and mention by Mr. Koudelka that he has not found another city without mandatory pickup except for Cheney, which doesn't have mandatory recycling but does have composting. There was also some discussion and comparisons of Cheney's process with other cities. Mr. Jackson said he would like to get an idea from Council of what is important and what would drive a decision to move us in any desired direction. Several Councilmembers said they want the best possible service with the lowest reasonable price, as well as stability to keep things consistent over the years, but to also have some flexibility and consider optional services such as Christmas tree or leaf pickup days. Mr. Jackson said an option could also be to have a citywide clean up twice a year. Mr. Jackson said keeping in mind we're a contract city, what does Council want in a scope of work; he said if we continue with the franchise, he feels we can work this out; that Spokane obviously wants some change; that owning a transfer station improves options, but taking over collection is a big step; and we must ask ourselves if it is cheaper or better service to contract out; that he personally feels we are very unlikely to improve the system as it is now. Deputy Mayor Schimmels agreed with Mr. Jackson and said the most offensive thing about this is we're being pushed into a corner, but that we could leave it as it is and stay put for at least three to five years. Mr. Jackson replied that option 3 is still on the table; and he mentioned the reduced rate; said we should still consider keeping all the assets under one roof and they would simply do it as a service provider; and whether option 2 or 3, either would work although we don't know how inexpensively we could operate the transfer station. Councilmember Hafner said he prefers option 3. Couneilmember Woodard said he feels we still don't have all the answers; that he too doesn't like being manipulated, and even if we stay in the system, at the very least feels we need to end up with the transfer station as it opens options and flexibility; whether we do it in-house or have a private company handle that; said he doesn't want to add a billing department and would prefer a contractor handle that as well. Councilmember Grafos said he agreed with the option concerning the transfer station, and that we could contract out for the operation,just own the facility. Mr. Jackson said at this point, we are waiting for the results of the RFQ. At 3:00 p.m.Mayor Towey called for a recess;the meeting was reconvened at 3:15 p.m. Workshop minutes:February 26,2013 Page 7 of 10 Approved by Council: March 26,2013 5) Ten-Year Anniversary—Carolbelle Branch Public Information Officer Branch went over the plans for celebrating our City's tenth anniversary of incorporation; she said she has secured several sponsors to provide financial support which totals $6,150 to date, plus in-kind contributions such as advertising space. Ms. Branch also stated that SRTC (Spokane Regional Transportation Council) will loan us trash and recycling bins for the March 16 event at CenterPlace. 6) Council Meeting Process—Mike Jackson; Chris Bainbridge City CIerk Bainbridge explained that as requested, she has brought forward for Council consideration, some of the Council processes to include in the Governance Manual. She mentioned the topic of ballot measures and the state statutes associated with prohibitions against the use of public facilities to support or oppose ballot propositions, which lead to discussion about how to handle the unexpected comments from the public during the council meeting's public comment sections. It was suggested adding brief Ianguage to the agenda section dealing with public comments; or that the Mayor could have a standard response to read should someone start to comment on any upcoming or proposed ballot issue. A paragraph on donations was also briefly discussed by Attorney Driskell. Mayoral appointments was discussed and procedures to use in the future should the Council not confirm a mayoral recommended appointment. Filling a council vacancy was mentioned and Ms. Bainbridge said this is simply inserting the already approved process into the Governance Manual. A question was raised about the possibility of sequestering each candidate being interviewed from the other candidates, but since these interviews must be done in public, it was felt that would not be possible, especially with the public's ability to view the meetings via web streaming. A suggestion was made for future appointments of council vacancies, to have the actual appointment as the last action item of the night rather than the first,thereby not putting the new Councilmember in a position to vote upon items which the Councilmember may not feel comfortable voting upon. 7) City Hall—John Hohman;Mike Jackson Community Development Director Holtman explained that we are not trying to limit anything at this point, and all options are open; that today is a brainstorming exercise without limitations; and as per the work plan, it is his hope to end up with some direction at the end of the process. Mr. Hohman also brought attention to the aerial photos of what's currently available on the Sprague/Appleway corridor. Mayor Towey asked if any of the information from the previous study would be useable, and Mr. Hohman said that all that information is transferable to this effort. Mr. Jackson added that it is all subject to revision and noted the former study had community development on a higher floor, but that he feels that department needs to be on the main floor. Councilmember Wick asked about the idea of joining the Valley precinct, and Mr. Jackson explained that is not included in the 40,000 square feet projection, but if Council wants to consider that, now is the time for that discussion. Mr. Hohman said the 40,000 square feet is just this building's operation, and would not include the precinct nor Parks and Recreation. Mr. Jackson noted we have a four-year time line unless we find an existing building; adding that there are numerous examples of a combined city hall/police precinct. Director Hohman said staff hopes to make some progress over the next few months, and to have more information late spring or early summer. The topic of bonding cycles was discussed with Finance Director Calhoun mentioning that option of using some of the existing monies in the City's budget, and adopt a reimbursement resolution to pay ourselves back. Mr. Calhoun noted that LTGO (long term general obligation) bonds are limited to issuing a fixed percentage of the assessed value, so we would be limited to about$100 million. 8) Miscellaneous Items— Items Tab A: Review of 2012 Budget; Tab B: Appleway Beautification; and Tab C: Economic Development were postponed until another meeting. Workshop minutes:February 26,2013 Page 8 of 10 Approved by Council:March 26,2013 9) Council Brainstorming--open discussion City Manager Jackson said the floor is open to ideas to include in the work plan, or for other ideas in general. Below is the result of those discussions: Contractor Forum: As a result of only receiving one bid on a recently bid project, Councilmember Grafos suggested holding a series of meetings with contractors to address any real or perceived acrimony. Lodging Tax: Councilmember Wick said he feels we don't get full credit for hotelier credit especially when there is a Tourism Promotion Area. Mayor Towey said the County is the head agency on the TPA; that we have two voting members on that committee, but we don't have enough credit on our input on TPA funds for Spokane Valley; and said we are in the middle of this year's disbursement, but after that we need to let citizens know how much money we actually give to TPA. Councilmember Wick suggested the recipients should be made aware as well. Additional Sheriff Deputies: Councilmember Woodard said he would like to see more deputies on the street. Mr. Jackson said we can have that discussion, but since we contract with the County for our law enforcement,that we are not involved in contract negotiations for labor; it would also mean an adjustment on our budget; that new recruits are brought in but it takes a couple of years to put someone through the academy so as people retire they can be replaced, which is not the same as an increase in the force; and said all that ties in with the 2014 budget process. Businesses within the City: Councilmember Hafner asked how many new businesses stay open a year after they initially open; that perhaps there is something we can do about that; he asked if there are any statistics on the demography such as do we have more seniors or young people moving in; and said we need a good labor force in the community. In addition, he said he wants to look at land use conditions, especially the businesses that are boarded up and overgrown with weeds. He said we are in the process of building a brand for our city and he wants to keep that momentum going; and suggested having things like a farmer's market or having experts from Eastern Washington University discuss the economic climate at future council meetings; said if we are going into a recession next year,we need to be prepared. Councilmember Wick and Grafos agreed there needs to be more positive articles in local newspapers about the good things we do in Spokane Valley. Mr. Jackson said when people report on statistics for crime or otherwise, we don't know where they get their information; but when we examine 2014, we need to look at our operations; that we focus on keeping cost down; if we want to have staff meet people in the community and keep them up dated, it will take some resources; and when we keep the budget in mind, we don't want to short-change ourselves just to see how Iean we can operate. He said we are now at a point where we can see the cause and effect, and if we add a person it will be important to have specific duties involved; he also mentioned our investment in advertising and that any advertising we do should be done in a fiscally responsible way. Advertising and promoting our City: Councilmember Woodard said some things to consider include our policing successes, our roads, and that we have free parking. Mayor Towey said as we embarked on our street preservation program, we took some money from capital funds to support that effort,but that it will only fund the program for about four years, and that we need to think about a sustainable fund for road preservation. Councilmember Wick mentioned bridging the valley, but Mayor Towey said due to the huge cost, that idea was put on the "back burner" and Deputy Mayor Schimmels said that in order to complete such an endeavor, the railroads would have to step in, and they aren't interested at this point. Mr. Jackson added that in order for that to occur, the railroads would also have to consolidate their lines and they don't talk to each other either. Workshop minutes:February 26,2013 Page 9 of 10 Approved by Council: March 26,2013 Economic Development: Councilmember Wick suggested we need to be ready for economic development by having those certified site programs and having the sewer connections in place; and said there is a lack of industrial property in the Valley, which will continue without that sewer connection. Mr. Jackson said we can pursue sewer needs based on inventory; but we don't want to assume if we spend money on sewer, it will bring in business. Councilmember Wick also mentioned increasing River access points. The idea of an additional 2% in lodging taxes was also mentioned. Other suggestions included have select limited deer hunting in the City limits, with Mr. Driskell explaining that all of our City is included in the County's no-shooting zone as there is too great a risk of harm. A doggie park was mentioned and Parks and Recreation Director Stone said the result of the public survey is that a doggie park is not wanted, but added we could look at acquisition and would not have to develop such a park, at least not immediately upon the acquisition. The idea of acquiring the property on Park Road was mentioned, and Mr. Jackson said we don't know if the property is still up for sale. Councilmember Wick said he was looking through a twenty-five page insert about Spokane placed in the Alaska Airlines magazine by Visit Spokane, but there was no mention about Spokane Valley or even about CenterPlace; and suggested bringing this up with Visit Spokane. Councilmember Hafner suggested we need to set the record straight and get the information to the public, that we have a safe city, and Mr. Jackson said that Mr.KoudeIka and Chief VanLeuven are working on a response to those previous public comments. [The brainstorming ideas written down on the easels included: (1) contractor forum; (2) lodging tax — more credit/exposure; let people know money available from Spokane Valley; give hoteliers credit (3) look at law enforcement officer numbers; (4) promote public safety; (5) Economic Development: percentage of businesses that succeeds or fails; labor force; demographics; vacant buildings — condition; regulations; business climate; (6) draw business and people— farmer's market; (7) economic conditions; (8) Journal of Business; (9) communicate with partners—promote what we are doing; (10) advertising— permits, parking, roads, public safety, sewer; (11) sustainable preservation funding; (12) Bridging the Valley; (13) access river; (14)parks and recreation; (15) Sports Commission event center; (16) additional lodging tax; (17) deer control; (18) advertise CenterPlace — Parks and Recreation; (19) Park Road Pool Property; (20)annexation;and(21) Spokane Valley Voice.] Mayor Towey thanked everyone for some good discussion, and the meeting ended at 5:05 p.m. 411111° Alif Thomas E.ToN'ey, ayor lk ATTEST r° 7 Y -, A ,44r I- hristine Bainbridge,City Clerk Workshop minutes:February 26,2013 Page 10 of 10 Approved by Council:March 26,2013 Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property. Franchise with private haulers (status quo) Contract with private haulers Self-haul No City regulation (return to pre-notice) City Control No rate-setting(rates are set by WUTC) City may adopt public health and safety regulations City rate-setting, billing, and bill collections City may contract for hauler to provide rate-setting, billing, and/or collections City may adopt public health and safety regulations City rate-setting;city billing; city bill collections City owned and operated garbage trucks City adopts public health and safety regulations No rate-setting(rates are set by WUTC) City may adopt public health and safety regulations Seven-year notice clock reset Utility Tax(on collections) Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use License Fee Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Franchise/Contract Fee Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes No No Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property. Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property_ Franchise with private haulers (status quo) Contract with private haulers Self-haul No City regulation (return to pre-notice) City Control No rate-setting(rates are set by WUTC) City may adopt public health and safety regulations City rate-setting, billing, and bill collections City may contract for hauler to provide rate-setting, billing, and/or collections City may adopt public health and safety regulations City rate-setting;city billing; city bill collections City owned and operated garbage trucks City adopts public health and safety regulations No rate-setting (rates are set by WUTC) City may adopt public health and safety regulations Seven-year notice clock reset Utility Tax(on collections) Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use License Fee Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Franchise/Contract Fee Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes No No Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property_ Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property. Franchise with private haulers (status quo) Contract with private haulers Self-haul No City regulation (return to pre-notice) City Control No rate-setting (rates are set by WUTC) City may adopt public health and safety regulations City rate-setting, billing, and bill collections City may contract for hauler to provide rate-setting, billing, and/or collections City may adopt public health and safety regulations City rate-setting;city billing; city bill collections City owned and operated garbage trucks City adopts public health and safety regulations No rate-setting(rates are set by WUTC) City may adopt public health and safety regulations Seven-year notice clock reset Utility Tax(on collections) Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1% if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use License Fee Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Franchise/Contract Fee Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes No No Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property. Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property. Franchise with private haulers (status quo) Contract with private haulers Self-haul No City regulation (return to pre-notice) City Control No rate-setting(rates are set by WUTC) City may adopt public health and safety regulations City rate-setting, billing, and bill collections City may contract for hauler to provide rate-setting, billing, and/or collections City may adopt public health and safety regulations City rate-setting;city billing; city bill collections City owned and operated garbage trucks City adopts public health and safety regulations No rate-setting(rates are set by WUTC) City may adopt public health and safety regulations Seven-year notice clock reset Utility Tax(on collections) Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use Yes;generally on gross receipts of collection company;tax generally passed straight to customers May be subject to limit of 2/10 of 1%if SB 5688 is passed Likely subject to referendum Used for general government purposes for any use License Fee Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Similar to business license; regulatory means for operation within City Used for general government purposes for any use Franchise/Contract Fee Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes Yes; Rate set and tied to impact of haulers on City streets; used solely for street maintenance and preservation purposes No No Note: Utility tax on disposal is available for all options, but cannot be imposed on County-owned property.