2013, 09-17 Study Session MINUTES
SPOKANE VALLEY CITY COUNCIL
REGULAR MEETING
STUDY SESSION FORMAT
Spokane Valley City Hall Council Chambers
Spokane Valley,Washington
September 17,2013 6:00 p.m.
Attendance:
Councilmembers Staff
Tom Towey,Mayor Mike Jackson, City Manager
Gaiy Schimmels,Deputy Mayor Cary Driskell, City Attorney
Dean Grafos, Councilmember Mark Calhoun,Finance Director
Chuck Hafner, Councilmember Mike Stone,Parks&Recreation Director
Rod Higgins,Councilmember John Hohman,Community Development Dir.
Ben Wick, Councilmember Eric Guth,Public Works Director
Arne Woodard, Councilmember Erik Lamb,Deputy City Attorney
Scott Kuhta,PIanning Manager
Mike Basinger, Senior Planner
Christina Janssen,Planner
Chris Bainbridge, City Clerk
Mayor Towey called the meeting to order at 6:00 p.m.
• Roll Call: City Clerk Bainbridge called the roll;all Councilmembers were present.
ACTION ITEMS:
1. 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
08/2612013 3 0024-3 0075 $352,101.26
08/29/2013 39976-30104; 827130174 $136,284.57
08/29/2013 5643-5664 $2,029.00
09/03/2013 3 0105-3 0139 $118,160.65
09/04/2013 4465; 4483-4486; 4502; 30140-30143 $260,936.16
09106/2013 30144-30193; 830130027; 905130026 $2,067,438.14
GRAND TOTAL $2,936,949.78
b.Approval of Payroll for period ending August 31, 2013: $409,490.69
c.Approval of Council Meeting Minutes of August 20,2013, Study Session Format
d.Approval of Council Meeting Minutes of August 27,2013,Formal Meeting Format
e.Approval of Council Meeting Minutes of August 28,2013, Special Regional Solid Waste Meeting
f.Approval of Council Meeting Minutes of September 3,2013, Study Session Format
g. Approval of Council Meeting Minutes of September 4, 2013, Special Joint Meeting
h. Approval of Council Meeting Minutes of September 6, 2013, Special Meeting
i. Approval of Council Meeting Minutes of Sept 6,2013 Special Meeting, Council of Governments
It was moved by Deputy Mayor Schimmels, seconded and unanimously agreed to approve the consent
agenda.
Council Study Session : 09-17-2013 Page 1 of 5
Approved by Council: 09-24-2013
2. Second Reading Proposed Ordinance 13-013 Avista Natural Gas Franchise—Cary Driskell
After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Schimmels and
seconded to approve Ordinance 13-013 granting Avista Utilities a natural gas franchise. City Attorney
Driskell briefly explained the background of the franchise. Mayor Towey invited public comment; no
comments were offered. Vote by Acclamation:In Favor: Unanimous. Opposed:None. Motion carried.
NON-ACTION ITEMS:
3.Manufactured Home Park Zoning—Scott Kuhta
Planning Manager Kuhta explained that tonight's agenda item is in follow-up to previous discussions
concerning the issue of manufactured home park zoning regulations, wherein staff gave an overview of
Tumwater's lawsuit dealing with manufactured zoning, which resulted in Council seeking more
information from the park owners. Mr. Kuhta said surveys were mailed in order to get some feedback on
what could be viewed as restrictive zoning on manufactured home parks; and said only five surveys were
initially returned, Mr. Kuhta said staff followed up with some phone calls to the six larger parks and
received a few more responses; and out of those responses, only one expressed no concern at all as the
owner stated they were not going to re-develop and had no plans to do so in the future. Mr. Kuhta said that
other property owners expressed some level of concern with establishing such a zone, and he referenced
Mr. Cochran's comments contained in the council packet material, which explain that Mr. Cochran feels
there is enough protection in the current law, and zoning would present an undue burden on private
property rights and that owners of the parks would rather not see any zoning restrictions. Mr. Kuhta said if
Council wants to move forward with some zoning, we would need to get something on the docket by
November 1 so that policies could be added to support future regulations. Mr. Kuhta mentioned that the
current regulations limit density to seven units per acre in home parks, and said he is not sure why it is so
limited, and that should be researched. There followed some discussion concerning smaller lots and greater
density; overlay zones for manufactured home parks; what would or would not require a comprehensive
plan amendment; and the general outcome of the Tumwater decision with City Attorney Driskell urging
caution since that was an ordinance specific to Tumwater's conditions. Mr. Kuhta also mentioned the
recent(September 16, 2013) letter from AMHO and all Councilmembers acknowledged that they received
a copy. Deputy Mayor Schimmels stated his preference not to have this as a comprehensive plan change;
Councilmember Wick indicated that perhaps there could be some law changes to pursue to make it easier
for an association to purchase the property. Mayor Towey said the agrees with the need for greater density,
and liked the idea to move forward to at least evaluate and study the possibility of changing the density of
the property rather than moving to a more restrictive park. Mr. Kuhta said a density change could be
accomplished through a code text amendment. There were no objections from Council for staff to further
evaluate and study the density issue.
4, Specialized School in Industrial Zones--Christina Janssen
Planner Janssen explained that staff received a privately initiated code text amendment to outright allow
Specialized Training/Learning Schools/Studios in the Light Industrial zone, and to allow with a conditional
use permit in the Heavy Industrial zone. Ms. Janssen said a conditional use permit would have to go before
the Hearing Examiner, and said the benefit would be that these types of uses could be looked at on a case-
by-case basis; and said the applicant prefers allowing it as a permitted use in Light Industrial. Ms. Janssen
also explained the approval criteria as noted on pages 2 and 3 of the staff report, specifically that the
proposed amendment is not consistent with the Spokane Valley Comprehensive Plan and therefore, staff is
not recommending approval of the proposal.
Community Development Director Hohman said staff had a difficult time with this proposal; that they want
to be business-friendly but also need to look at the guidance in.the Comprehensive Plan; and said there is
enough information in there for staff not to recommend approval; adding that the issue is also about sewer
availability. Mr. Hohman explained that the result of a previous analysis shows there is very limited sewer
availability in the industrial areas; said it would be difficult to have discussions with the County in some of
these areas when we'd be entertaining that this proposal would not fit within the industrial categories; said
Council Study Session : 09-17-2013 Page 2 of 5
Approved by Council: 09-24-2013
staff is an advocate of sewer expansion and we want to reserve as much as possible for industrial uses. In
contrast, he explained, neighboring jurisdictions have their own sewer utilities so if they want to extend
sewer they can; but explained that we are not in the same category and it would be more difficult to get
industrial areas open with sewer; adding that we have an obligation to try to protect existing areas. Mr.
Hohman said it was very difficult for staff to make a recommendation on this, but ultimately felt there was
not enough support for such a proposal in the Comprehensive Plan. Mr. Hohman said that perhaps staff
didn't explain that we well as it could have been explained as the Planning Commission voted five to two to
recommend approval;with a minority opinion to protect those areas for the higher use. Mr. Hohman said he
wants to make sure Council has the complete picture, and that the detailed minutes are included in the
Council packet to help Council understand the process as it took place at the Planning Commission. Mr.
Holunan said he is here to answer questions; that Council has the option to proceed with this or not, or
remit back to the Planning Commission for further analysis.
Councilmember Woodard referenced Spokane Valley Code section 17C.130.015 and Title 17C concerning
uses permitted, but it was Iater determined that those code sections are from Spokane's Municipal Code and
not from Spokane VaIley's Code. Councilmember Woodard said he would love to see the gymnastics here
and doesn't see the issue as giving up industrial land. Councilmember Grafos asked if we had more
property severed,would that have made a difference, and Mr. Hohman replied that it would but that would
have only resolved that part, as there are still numerous policies in the Comprehensive Plan that discourage
the use; and in response to a question from Councilmember Hafner, said if this is permitted, it would be
permitted city-wide; and said again one of the issues is, would this be the highest and best use for that
property. Further discussion included that the type of building needed for their business is large, and the
property in question is less expensive to rent than other commercial properties. Mr. Hohman also noted
that Planning Commissioner Carlson recommended a "middle ground" resolution to allow this use as a
conditional use in the light industrial, and not allow it in heavy industrial, which means the Hearing
Examiner could look at the specific location. The idea of a conditional use permit was discussed including
mention that the process would take longer. Mr. Hohman also noted that our use matrix is very specific
and staff could examine in the future that with the idea of grouping more into broader categories. Mayor
Towey and Councihnember Wick suggested moving forward with the conditional use permit.
Councilmember Woodard said he would like to see gymnastics as part of our lifestyle, and said he does not
like the idea of a conditional use permit as it is expensive and leaves the issue up to a public hearing.
Councilmember Grafos said he agreed that the conditional use permit slows down the process and he
prefers moving ahead. Councilmember Wick added that he sees this as a tremendous asset and doesn't
want to impede their progress, but wants to protect the manufacturing zones, and as an example said he
would not like a daycare next to a manufacturing facility. Councilmember Higgins asked about the status
of a previous decision to allow a soccer facility and Mr. Holtman replied that after a lot of work to modify
the permitting use matrix to allow indoor entertainment in the industrial area, the business was only viable
for about three months and is currently not operating. Councilmember Higgins suggested going back to the
structure under which we are working and start there. City Manager Jackson asked if Councilmember
Higgins was referring to examining the goals and policies of light and heavy industrial land; and
Councilmember Higgins replied that he was referencing Mr. Hohman's previous statement about
broadening the use matrix. Mr. Hohman replied that would be a longer term goal while he would look to
Council to make a decision on this particular matter with the current use matrix.
Councilmember Hafner said he prefers this return to the Planning Commission for further review. In
response to Mayor Towey's question of whether to send this back to the Planning Commission for further
evaluation. Councilmembers Woodard, Grafos and Higgins expressed their preference to move forward;
while Mayor Towey, Deputy Mayor Schimmeis, and Councilmembers Wick and Hafner expressed their
preference to have this return to the Planning Commission for further evaluation. The matter will be
returned to the Planning Commission for further evaluation.
Council Study Session; 09-17-2013 Page 3 of 5
Approved by Council; 09-24-2013
5. Site Selector Agreement Amendment—Cary Driskell,Mike Basinger
Concerning the Agreement amendment, City Attorney Driskell explained that the amendment is minor; he
explained that the agreement was adopted December 12, 2006, with a new agreement executed October 19,
2009; he said the person who oversees the consortium is Dr. Kerry Brooks from the University and he has
moved from Washington State University to Eastern University, so the oversight for the agreement will
move with him. Mr. Basinger then explained some of the functions and features of the Site Selector,
including who the primary users are and the reports available, adding that his goal is to market this to make
people aware of the site, and how it can be used. Councilmember Grafos suggested we have someone from
the City attend the traders' clubs and have representatives there, and have someone at the Home Builder's
as well. Planning Manager Kuhta said that Mr. Basinger participates on the Consortium Oversight
Committee and directly participates in all decisions; and when he (Mr. Kuhta) was on the Consortium
Committee, he made several presentations to traders clubs, and held open houses for training sessions on
some of the new applications and has no doubt Mr. Basinger will be involved similarly. Mr. Kuhta said that
Greater Spokane, Inc is also a partner in the Consortium and one of their representatives is directly
responsible for communicating with the brokers. Councilmember Grafos said he believes we should have a
representative and make sure we are at the table if we're going to pay for this. Going back to the
agreement, Mr. Driskell said he will make the necessary name changes on the signature pages, and if there
are no objections, will bring this back for a motion on a future council agenda. There were no objections.
Mayor Towey called for a short recess at 7:30 p.m., and reconvened the meeting at 7:40 p.m.
6.Presentation of 2014 Preliminary Budget—Mike Jackson
As part of the 2014 budget process, City Manager Jackson presented the 2014 Preliminary Budget for
council review and discussion. He explained that the second public hearing for the 2014 budget is
scheduled for next week, and tonight's focus is primarily on the budget message found in the front of the
budget, which includes fiscal policies for Iong term financial health of the City. Mr. Jackson stressed that
our message is we have a balanced budget and are in excellent financial condition, with a surplus level
equivalent to six month's reserve. Via his PowerPoint presentation, Mr. Jackson went over the financial
objectives as shown on slide#7, including the new objective to"grow our economy so our existing tax base
can support our basic programs." Mr. Jackson said we must remain fiscally sound and one way to do that
is to be committed to the policies of long-term financial sustainability, and said that deviation from our
commitments could begin to erode our financial condition. He said our only true debt service is Street
Bonds as the CenterPlace debt is reimbursed by the Spokane Public facilities District. Examples of our
lean operations,Mr. Jackson explained, include capping the 2014 budget recurring expenditures at 1% over
the 2013 budget for non-wage expenditures; as well as keeping our FTE(full time equivalent staff) lean at
87.25 for 2014. Mr. Jackson said public safety is our top priority and he briefly discussed some of what it
takes to meet that priority, include property tax, criminal justice tax, public safety sales tax, and general
fund. Road maintenance/preservation is our second priority, said Mr. Jackson and said our pavement
preservation goal commitment represents 6% of our recurring expenditures. Mr. Jackson mentioned the
various funds comprising our funding pavement preservation; and in the overall taxing picture, showed that
the City of Spokane Valley's share is 11%, as compared with Spokane County's 10%, Central Valley
School District's 35%, Fire District #1's 23%, State Schools' 17%, and the Library District's 4%; which
breaks down to about$214 a year based on a median home value of$135,000 which breaks down to about
$17.84 per month, Mr. Jackson also noted our staffing levels compared to other jurisdictions, and said we
remain extremely lean with a ratio of approximately one employee per 1,049 residents, Mr. Jackson
mentioned our continuing financial challenges of pavement preservation, street capital projects, street
maintenance, and other capital projects such as parks and trails, and mentioned a new concept as shown on
slide 32, of Service Level Solvency, with ties in with the balanced budget. Mr. Jackson said he might
consider funding additional preservation from the REST (real estate excise tax) fund, which is an
acceptable use, which would free up dollars in the general fund to support additional officers or other
essential services for the City. Councilmember Grafos asked if the $350,000 contingency for law
enforcement is for future deputies, and Mr. Jackson said it is for any cost increases we might incur in 2014,
and is not anticipated for additional officers.
Council Study Session :09-17-2013 Page 4 of 5
Approved by Council: 09-24-2013
Mayor Towey commended staff for their work and said the budget is something we can be proud of, and
again expressed appreciation for the "great job." Councilmember Grafos said with regard to Mr. Jackson's
idea of using the REET funds for road preservation, and would prefer the 6% come from the general fund,
and Councilmember Woodard said he also likes the concept of having the line item in the general fund so
citizens can keep in mind what we're doing; and as we move forward, said he would like more discussion
on police; that he would prefer we "grow ourselves" to have the revenues coming in, and would rather not
see that 6% come out of the general fund. Mr. Jackson said perhaps we could do without that, but it would
be a potential source if we added officers without having adequate general funds to handle that additional
cost. Councilmember Grafos said he would also like to see line items on each department that shows the
percentage growth of each department as well as wages and benefits. Mr. Jackson said he provided that to
Council at a work session, and he would be happy to include that in the budget. Councilmember Hafner
said if we determine we need more officers, he is not opposed to looking at REET funds if needed. Mr.
Jackson extended his thanks to Finance Director Calhoun and to the department heads and their
administrative assistants for their efforts in working on the budget.
7.Advance Agenda—Mayor Towey
Councilmember Grafos asked about the City Hall options, and Mr. Jackson said that issue was moved
down in priority due to other, higher priorities, but staff should be able to bring the topic back perhaps next
month. Councilmember Woodard asked if the changes we requested to the County concerning the CDBG
(Community Development Block Grant) are included in next week's information, and Mr. Jackson said
they were approved. Mayor Towey noted there are five Tuesdays in October and he asked if there were
any objections to cancelling the October 1 meeting. There were no objections.
8.Argonne Road&Sprague Avenue Street Preservation Project
This was for information only and was not reported or discussed.
9. Council Check-in—Mayor Towey
Mayor Towey invited all citizens to this Friday's Valleyfest parade, which starts at 7:30 p.m. between
Gillis and Pines Road; and said Saturday at 7 a.m., several Councilmembers will be serving breakfast at
CenterPlace.
10. City Manager Comments—Mike Jackson
City Manager Jackson said he met with our legislative lobbyist Briahna Taylor in preparation for the 2014
legislative session, and said there are several issues coming up that he would like her to discuss at a council
meeting,perhaps in a few weeks; said last year Council supported the legislature considering transportation
revenues, and now that the Sullivan Bridge has been resolved, does Council wish to continue that message
in the 2014 session; also Council may want to pursue other capital projects; said issues such as streamlining
sales tax mitigation will likely continue to be prevalent; and said Council may or may not be asked to
consider a position on tribal casinos. Mr. Jackson said City Attorney Driskell is working on nuisance
abatement legislation but it appears the banks don't support that so it will continue to be a challenge.
It was moved by Deputy Mayor Schinunels, seconded and znranim• agreed to adjourn. The meeting
adjourned at 8:22 p.m.
Ar
ATTES comas E. Towey,Mayor
A A-44/4 Ail
L_Christine Bainbridge, City Clerk
Council Study Session: 09-17-2013 Page 5 of 5
Approved by Council: 09-24-2013