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2013, 04-04 Special MINUTES Special Meeting Spokane Valley City Council Thursday, April 4, 2013 8:00 a.m.—9:00 a.m. Spokane Valley Council Chambers 11707 E. Sprague Avenue, Spokane Valley,Wa. 99216 Attendance: City of Spokane Valley Staff Tom Towey,Mayor Mike Jackson, City Manager Dean Grafos, Councilmember Erik Lamb,Deputy City Attorney Ben Wick, Councilmember Mark Calhoun, Finance Director Arne Woodard, Councilmember Mike Stone,Parks &Rec Director Rick VanLeuven,Police Chief Absent: Steve Worley, Senior Engineer Gary Schimmels,Deputy Mayor John Whitehead,Human Resources Manager Chuck Hafner, Councilmember Michele Rasmussen,Administrative Assistant Rod Higgins,Councilmember Sue Passmore,Administrative Assistant Carolbelle Branch,Public Information Officer Honored Guests: Chris Bainbridge, City Clerk Representative Cathy McMorris-Rodgers Louise Fendrich, Director of Constituent Relations Melanie Steele, Legislative Director Melanie Tubbs, Press Secretary Others in Attendance: Bill Bates, Spokane Valley Planning Commissioner Bob McCaslin, Spokane Valley Planning Commissioner Mike Huffinan,Valley News Herald Nina Culver, Spokesman Review Three or four private citizens Open meeting and Welcome by Mayor Towey Mayor Towey opened the meeting and welcomed Representative Cathy McMorris-Rodgers to the meeting, and gave a brief background of Representative McMorris-Rodgers, the highest ranking republican woman in the House of Representatives; he mentioned several bills she sponsored, and of the committees with which she is affiliated, and said that last February she received the "Legislator of the Year" award for outstanding work promoting rural health care. Mayor Towey said today's meeting represents an opportunity to informally discuss issues with Representative McMorris-Rodgers. I. First Ten Years—Mayor Towey a, City Milestones; b. Recognition for Past Federal support for projects Mayor Towey shared some of this City's history, mentioned we are a "contract city" and that we have weathered the 2008 financial story and have about a 50% reserve in our general fund, a model he said, for many other cities. Mayor Towey mentioned that at the time of this City's incorporation, it was the second largest City in the nation to incorporate, and the largest city in Washington to incorporate. Mayor Towey also noted we have a strong six-year business plan, and said Council and staff have been working on a four year street preservation plan; said we operate under a "pay-as-you-go" philosophy; and since incorporation, have received approximately $45 million from federal grant programs, and he thanked Special Meeting Minutes 04-04-2013 Page 1 of 4 Approved by Council: 04-23-2013 Representative McMorris-Rodgers for her support. Of the list of projects, Mayor Towey said the Sullivan Bridge is our top priority; said we have received several million in grants, the City contributed $4.2 million, and we now lack about $4 million to complete the project; and said we have solicited support in Olympia as well, 2. Great Timing. Contact Washington Legislators and voice support for Sullivan Bridge. — Councilinember Dean Grafos a. We are receiving$8 million from the Federal Bridge Program b. $2 million from Washington State Freight Mobility Strategic Investment Board c. $3.5 million from Washington Transportation Improvement Board(TIB) d. $2.3 million from City of Spokane Valley We have requested $4 million from the Washington State Legislature in this session. The project needs to go out to bid in November or'we will lose the$3.5 million from the TIB. It would be great if Representative McMorris-Rodgers would be willing to contact Washington state legislators and encourage support of our request. Councilmember Grafos mentioned how the Sullivan Bridge supports our City; said we received about$15 million but are about $4 million short, and said perhaps Representative McMorris-Rodgers could use her influence with state and federal representatives to see if she can help us; said this is an important need in our infrastructure and an important economic development means; and he asked her for her support. Councilmember Grafos said this is not included in the state budget at this point and does not know if it will be included in the transportation bill. City Manager Jackson added that we have a request in and are working with local legislators, and that perhaps Ms. McMorris-Rodgers could make contact to assist in this endeavor. Councilmember Wick added that the$3.5 million allocation from TIB will be in jeopardy if we don't get the last needed $4 million. Concerning the state budget, Mr. Jackson said no specific projects were included; said the majority of the needed funds have been raised, and our local representatives are doing a tremendous job in support of this project. Discussion included past efforts to secure the bridge, such as imposing weight limits; and that the bridge has one of the highest truck traffic counts in the state. Representative McMorris-Rodgers said she wants to figure out a way to make this happen so Spokane Valley doesn't lose funding from TIB; and that she will contact legislators to get a better sense of where they believe this projects falls in priority. 3. Protect Tax Exempt Status of Municipal Bonds--Mayor Towev There is federal legislation pending that threatens the federal income tax exemptions for State and Municipal Bonds. According to National League of Cities, interest paid on bonds issued by local governments currently not taxed could lose their exemption from taxation. National League of Cities and the City of Spokane Valley opposes any attempt to eliminate or limit the traditional tax exemption for municipal bonds whether as part of a deficit reduction plan, a push for comprehensive tax reform, or as an offset for new spending. Mayor Towey expressed his concern with the fate of municipal bonds. Representative McMorris- Rodgers said there is not a specific proposal to eliminate tax exempt municipal bonds; but there is a concern when it comes to municipal bonds and an argument she heard is if they take away this exemption, there is no way to know how the state and local governments may respond as those entities could then impose a tax; so she said the federal government might save money in the short term, but said this isn't a solution; that there is concern and debate over tax reform and there is an effort to streamline the process and close the loopholes; adding that this may be included in that strategy but she hasn't seen it in any proposal. City Manager Jackson, Mayor Towey and Councihember Woodard all mentioned we are in good financial condition and operate on a pay-as-you-go philosophy, but there are many cities that might rely on the tax-exempt municipal bond. Special Meeting Minutes 04-04-2013 Page 2 of 4 Approved by Council:04-23-2013 4. Support Barker Road/BNSF Grade Separation Project— Corurcilnrember Ben Wick $37 million to remove at-grade crossings to improve emergency access, reduce noise, and to increase rail capacity and improve traffic flow. Mayor Towey mentioned our City's concern with the coal trains and with our "Bridging the Valley" effort to separate rail from the state and city roads; and said over the past years, this idea has been de- prioritized, but the issue of the coal trains and brought this topic to the forefront; adding that if those coal trains do materialize, it will have a tremendous impact on our citizens. Councilmember Wick said of the areas of concern, our City's first choice would be Barker due to safety issues; that about a decade ago there was an effort to combine the lines and have them run from Idaho all the way in; and perhaps Ms. McMorris-Rodgers could get the railroad companies talking again. Mr. Jackson added that the railroads were discussing the issue more in the past, and that this issue hinges on the consolidation of some of the rail corridors and having fewer traffic/train crossings. Mayor Towey stated that the problem is both more trains and longer trains; that the impact will be great if we don't bridge the valley; he said we need to educate our citizens on what will happen; and said the primary focus is on four crossings. Councilmember Wick said this is not just a Spokane Valley project, but is a regional project as this would be improving the connectivity with state highways; that Argonne is one of our busiest and longest roads; and with the UP Line going through Millwood, the trains slow down which backs up traffic into our city; he said we are working with Millwood but there is no way to put in improvements and that they are relying on bridging the valley to improve that situation. It was mentioned that price is a large factor. Mr. Jackson said this one crossing was estimated at $39 million; and he said in about a month our staff will make a presentation to Council, and he could forward that information to Ms. McMorris-Rodgers office; and that as we learn more, we will forward the information to her. Ms McMorris-Rodgers concurred with that approach. Councilmember Woodard said that trains and whistle blowing also have an effect on property values; that there are about nineteen crossings that could effect our residential areas; that BNSF and UP are the two largest rail lines; and that these rails cut our city in half when the trains are blocking roads. Representative McMorris-Rodgers said it would be great to get this information in context of the overall project, and where we see this fitting in; that she has also looked at the North/South Freeway and/or Highway 12 in Walla Walla; and she encouraged staff to send her the information so she can see the"big picture." 5. Support funding for Community Development Block Grants and other AWC federal priorities- CouncllmentberArne Woodard Councilmember Woodard briefly explained CDBG and the decreased funding and of Spokane Valley's entitlement of up to 20%, and said if we took all of our amount this year it would leave almost nothing for any of the smaller towns; he said our projects are ADA and critical; so the question is how do you cut out the smaller towns or cities that don't have a tax base but must have sewage and clean water; and said as a member of that committee, it becomes a challenge for him and said he wondered if there is any way the federal government could see the importance of that for all the small cities and towns, Representative McMorris-Rodgers replied that those funds are frequently put on the "chopping block;" she said she has consistently voted to protect the funds as they go directly to the communities with a local board that oversees and provides accountability; that in this community and in her region she hasn't seen any problems and has confidence this is a program that doesn't have a mass of layers; whereas in other parts of the country, there have been problems with the program, which is why it continues to be cut; and said this is one of those federally mandated requirements put on communities without funding. Mayor Towey said he would like to get her impression of what can we do for her when she's in D.C. or how can we support or enhance what she is already doing. In response, first Ms. McMorris-Rodgers wished us a happy birthday, and applauded the leadership of the city; and said with the reserve we have along with very little debt, our city is fiscally responsible and a tremendous example to others. She expressed that there are a lot of federal challenges and tough Special Meeting Minutes 04-04-2013 Page 3 of 4 Approved by Council: 04-23-2013 decisions to be made and they can't say "yes" to every request; she said the current budget negotiations must be completed by April 15th; that the President will release his budget April 10; she said the federal government can't continue the current path where there is a trillion dollar deficit each year; and said the sooner we get our fiscal house in order the more assistance they can give to those needed programs; and said everyone needs to focus on the outcomes, and then determine how best to get those wanted results. Closing Comments Prior to adjourning the meeting, Mayor Towey thanked Representative McMorris-Rodgers for coming today, and presented her with a key to the City, as well as a City "passport"which he explained has been very beneficial to our tourists in explaining some of the aspects of our City. Mayor Towey adjourned the meeting at 8:53 a.m. f A T omas E. Towey, -ayor - Christine Bainbridge, City Clerk/ Special Meeting Minutes 04-04-2013 Page 4 of 4 Approved by Council: 04-23-2013