2017, 02-07 Study Session MINUTES
SPOKANE VALLEY COUNCIL MEETING
STUDY SESSION
Spokane Valley City Hall Council Chambers
Spokane Valley, Washington
February 7, 2017
Attendance:
Councilmembers Staff
Rod Higgins, Mayor Mark Calhoun, City Manager
Arne Woodard, Deputy Mayor John Holtman,Deputy City Manager
Caleb Collier, Councilmember Cary Driskell, City Attorney
Pain Haley, Councilmember Erik Lamb,Deputy City Attorney
Mike Munch, Councilmember Chelsie Taylor,Finance Director
Ed Pace, Councilniember Mark Werner, Police Chief
Sam Wood, Councilmember Mike Stone,Parks &Recreation Director
Carolbelle Branch, Public Information Officer
Karen Kendall, Planner
Mike Basinger, Senior Planner
Ray Wright, Planning/Grants Engineer
Doug Powell,Building Official
Jenny Nickerson, Senior Plans Examiner
Christine Bainbridge, City Clerk
Mayor Higgins called the meeting to order at 6:00 p.m.
ROLL CALL: City CIerk 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.
Proposed Motion:I move to approve the Consent ARearda.
a. Approval of claim vouchers on Feb 7,2017 Request for Council Action Form Total: $761,207.63
b. Approval of Payroll for Pay Period Ending January 31, 2017: $434,677.13
c. Approval of January 17, 2017 Council Meeting Minutes, Study Session
d. Approval of January 24, 2017 Council Meeting Minutes,Formal Meeting Format
It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to approve the Consent
Agenda.
• 2. Second Reading Proposed Ordinance 17-002 Amending SVMC 2.15.050—Caty Driskell
After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Woodard and seconded
to approve Ordinance 17-002 amending SVMC 2.15.050 relating to t1w City Manager.As mentioned during
the ordinance's first reading, Mr. Driskell explained that this is mostly a housekeeping item done in order
to avoid confusion as to whether the Code dictates the exclusive means for removing a city manager. Mayor
Higgins invited public comment; no comments were offered. Vote by acclamation: In favor: Unanimous.
Opposed:None. Motion carried.
3. Second Reading Proposed Ordinance 17-003 Amending SVMC 2.40.010—Cary Driskell
After City Clerk Bainbridge read the ordinance title,it was moved by Deputy Mayor Woodard and seconded
to approve Ordinance 17-003 amending SVMC 2.40.010 and removing the words
"pursuant to"and replacing therm with "and that I will support and defend." Mr. Driskell explained that
during the ordinance first reading, there was discussion about other optional language, such as the words
support and defend, and that he said at that time,that he would do some additional research. Mr. Driskell
Council Study Session:02-07--2017 Page 1 of 3
Approved by Council:02-28-2017
said that his research revealed that any of the three options are legal, and the ultimate decision is up to
Council, and noted once approved and codified, this would be the oath of office used for incoming
councilmembers as well as for the four staff members specified in the document. Councilmember Haley
said she would vote against this change as she is uncomfortable with the wording. Mayor Higgins invited
public comment;no comments were offered. Vote by acclamation:In favor:Mayor Higgins,Deputy Mayor
Woodard, and Councilmembers Munch, Pace, Collier and Wood Opposed:Councihnember Haley. Motion
carried.
4.Resolution 17-003 Selling Street Vacation Public Hearing Before Planning Commission—Karen Kendall
It was moved by Deputy Mayor Woodard and seconded to approve Resolution 17-003 setting March 9,
2017 as the date for a public hearing before the Planning Commission on street vacation application RV-
2017-0001. After Ms. Kendall explained the process and showed the area in question on the map, Mayor
Higgins invited public comment. No comments were offered. Vote by acclamation:In favor: Unanimous.
Opposed' None. Motion carried.
5. Motion Consideration: Council Expense Reimbursement Policy—Cary Driskell_
It was moved by Deputy Mayor Woodard and seconded to approve the City Council Expense
Reimbursement Policy. City Attorney Driskell explained that there is no formalized adopted policy for
travel reimbursement for Council; that staff has had a policy in place for a long time, and that we are
approaching a time when councilmembers will be travelling,so this would be helpful;and if passed tonight,
it will be incorporated into the Governance Manual for the next time that comes to Council for approval or
adoption of a revised Manual.Mr.Driskell noted that the City's Code has some language about the finance
committee being responsible for the adoption of a procedure, and said that in about three or four weeks he
will bring Council a draft ordinance suggesting changing that as well. Mayor Higgins invited public
comment;no comments were offered. Vote by acclamation:In favor: Unanimous, Opposed:None. Motion
carried
6. Motion Consideration: Mayoral Appointment to Governance Manual Committee —Mayor Higgins
It was moved by Deputy Mayor Woodard and seconded to confirm the Mayoral appointment of
Councihnember Sam Wood to the Governance Manual Committee. Mayor Higgins said that in the past,
there were as many as three on this committee, that it is currently functioning well with two, but
Councilmember Wood requested to be appointed to this committee. Councilmember Pace noted that he is
on the committee now,along with Deputy Mayor Woodard,City Manager Calhoun,City Attorney Driskell,
and City Clerk Bainbridge. Mayor Higgins invited public comment; no comments were offered. Vote by
acclamation:In favor: Unanimous. Opposed:None. Motion carried
NON-ACTION ITEMS:
7. CenterPlace Food Event: Crave! NW -Mike Basinger
Mr. Basinger gave some background information on the idea of the City sponsoring a potential 2017 food
event associated with Crave! NW, as noted on his Request for Council Action form. There were some
discussion about costs and Mr. Calhoun stated that we won't know the exact costs until we know what
portions of CenterPIace they will actually use; and in response to Councilmember Munch's question about
a City in-kind donation, Mr. Calhoun said that that it is a cleaner audit trail if we follow our own fee
resolution for a pre-determined price.Mr. Basinger confirmed that these funds have already been approved
for us from the Economic Development marketing funds. Mr. Calhoun also explained that SVMC 3.35
grants the City Manager the authority to enter into contracts up to$200,000,so while this would fall within
that authority, said this is an unusual request and he wanted to give Council opportunity for input. Mr.
Basinger noted we would not be locked in for five years;that we hope this will be a successful event, but
if not,we are not obligated for the additional years;and that the intent is if this is a successful endeavor that
will bring in hotel stays,the contractor would submit an application in the future for Lodging Tax Advisory
funds. There was no objection from Council in moving this forward.
Council Study Session:02-07--2017 Page 2 of 3
Approved by Council:02-28-2017
8. 2017 Amended Transportation Improvement Program (TIP)—John Hohman,Ray Wright
Mr. Hohman explained that this proposal is to amend only the 2017 TIP in order to include some projects
for which we have received grant funds,and to make sure the program is updated so we can start working
on those projects; he said this is separate from the development of the six-year plan which will come later
this year. After Mr. Wright went over the proposed amended 2017 TIP, Mr. Hohman said that staff will
follow up in the near future with specific discussion on projects such as Pines/Trent,and Trent and Barker;
and that this particular item is scheduled for Februaty 28 for a public hearing, followed by a resolution to
accept the amended TIP, and that the next TIP will come to Council in approximately May.
9. City Hall Update—Doug Powell,Jenny Nickerson
Building Official Powell went through the PowerPoint showing the various sections of the city hall
building, and noting we are still on schedule.
10. Advance Agenda—Mayor Higgins
Councilmember Pace said he would like a future administrative report on what other jurisdictions do about
allowing or not allowing people to have shipping containers in residential areas, as we currently do not
allow them; said this interest stems from a meeting he attended along with Deputy Mayor Woodard, and
several staff members, and that he received an e-mail from a citizen who wanted such a shipping container
so he could convert half of it into a storage shed,and the other half into a shop.There was Council consensus
to add that topic to the pending list on the Advance Agenda.
11. Parks &Recreation Quarterly Report
This item was for information only and was not reported or discussed.
12. Council Check in--Mayor Higgins
Councilmember Wood said he attended a Health Board meeting; and that lie appreciates being on this
committee and feels it will be an interesting committee.
13. City Manager Comments—Mark Calhoun
City Manager Calhoun mentioned that Council has two draft letters before them, concerning two House
bills we feel would be detrimental to the City;said that City Attorney Driskell drafted one letter,and Deputy
City Attorney Lamb drafted the other; and that we are seeking Council consensus to allow the Mayor to
sign the letters to send to our lobbyist and other appropriate agencies. Concerning the letters relative to
House Bill 1022, Mr. Driskell explained that the intent is to take away the ability of local jurisdictions to
control the number of marijuana retailers; said the Council previously restricted us to three and we are
allocated three; but if passed, this measure would mean we'd have to allow more, or lose 70% of the liquor
revenues, which would be about$617,000. Concerning House Bill 1574, Mr. DriskelI said this addresses
cities' authority to negotiate certain contract terms with contracts for public works projects; said the
proposed bill would do away with having to make a claim within ten days;he said we negotiate our contract
to protect the public dollar,and need certain negotiating rights;said we'd rather have the flexibility we have
now as we have the option of waiting, and said we would like to continue to have that option where
appropriate and fair; and said we have a strong desire to maintain strong, good working relationships with
our contractors, and feels this would interfere with that as well as interfere with our ability to timely close
a contract. There was Council consensus to have the Mayor sign and send both letters.
It was moved by Deputy Mayor Woodard, seconded id unanimously agreed to adjourn. The meeting
adjourned at 6:53 p.m.
A L.R. Higgins, a���
/ r
iristine Baitibri.ge,City Clerk
Council Study Session:02-07--2017 Page 3 of 3
Approved by Council:02-28-2017
February 7,2017
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The City of Spokane Valley opposes House Bill 1574. This Bill would improperly interfere with
the contractual relationship the City has with the contractors the City does business with. We
strive to manage our contracts to ensure they meet the needs of the City while complying with
legal requirements.
One of the assertions from the construction industry in advocating for HB 1574 is that
enforcement of strict contractual claim notice requirements increases costs to both contractors
and public entities. While we agree that there is potential for increased costs associated with
utilizing mandatory notice and claim provisions, this is not the case is Spokane Valley and we
are not aware of this happening elsewhere.
Spokane Valley greatly values the relationship it has with the contractors it does business with.
Pursuant to that, the City exercises its discretion when considering whether to require strict
compliance with claim notice requirements. The City has occasionally chosen to waive its right
to require strict compliance with contractual notice provisions, even if they are not timely. We
have done so in the past where appropriate. As you know, the relationship between jurisdictions
and the contractors with whom they do business is critical. We don't want to get into a situation
where a contractor believes that we treated them unfairly by enforcing strict notice and claim
procedures where a more reasoned approach was more appropriate, and then have to wonder the
next time we use them whether they are inappropriately trying to make up "lost" money.
Currently, cities have the ability to negotiate contract terms with private contractors in a way that
protects public funds, including a requirement that claims must be filed by a certain date. Other
examples include minimum insurance requirements and strong indemnity provisions. HB 1574
would disrupt that dynamic by allowing claims to be made long after when the contract was
completed or terminated. We have a significant interest in having such issues resolved in a
shorter timeframe so we can have finality in closing out projects, and closing out the financial
books from year-to-year.
Again, the City of Spokane Valley opposes House Bill 1574, and urge you to vote against it.
Thank you for your consideration.
C:1 Userslcbainbridge 4AppData4Local Lificrosofl4Windovs4Temporai y Internet Filesl Content.Outl ook4LACZ1 HVP4drnfl letter
opposing IIB 1574 by Cary Driskell.docx
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January 31, 2017
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The City of Spokane Valley opposes House Bill 1099. This Bill would effectively prohibit the
City from exercising its local legislative authority to manage the siting of marijuana uses as it
sees fit within its boundaries. We strive to respond to our community's desires for the types of
land uses allowed within the City and the manner in which they are allowed.
The City is cognizant that Initiative 502 was passed statewide, and that marijuana production,
processing, and retail sales are legal under state law. However, the impacts of marijuana
primarily occur at the local level. Impacts from marijuana-related crime, local youth marijuana
use and prevention, and noise, smell, and traffic impacts from marijuana businesses are all
immediately felt within the City, and not at the state level. Accordingly, it is important for the
City to maintain its local control over the siting of marijuana businesses.
The City understands that some jurisdictions have responded by shying away from the important
discussions about marijuana businesses, thus leaving some businesses in limbo. However, the
vast majority of local jurisdictions have had the discussions and continue to have ongoing
discussions about the appropriateness of marijuana businesses within their cities. The City of
Spokane Valley is one of those jurisdictions. We have had extensive Planning Commission and
City Council review and discussion over how to best allow marijuana uses within the City.
These have included visiting both a marijuana production business and a marijuana retail
Iocation. It was only after extensive review and deliberation over the last two years that the City
developed its final rules. It would be unfair to penalize the City and take away our local control
after we have spent so much time developing rules appropriate for our local circumstances. This
holds true for all of the other jurisdictions that have taken the long deliberate path that the City
has taken to establish local rules.
House Bill 1099 is also problematic because it relies upon a retail store allocation set by the
Washington State Liquor and Cannabis Board, an appointed State agency, as a basis for taking
away the City's funding. Indeed, the City has already experienced firsthand how often the
WSLCB changes its rules, including instances where it passed emergency rules with no advance
notice. The large number of changes and the immediate nature of emergency rules has forced
the City into the unfortunate position of having to conduct our own emergency rulemaking in
order to respond. We cannot have such a large portion of our liquor revenues, which are a
critical component of the City's finances, subject to the whims of an agency with such a
proclivity for emergency rulemaking.
Again, the City of Spokane Valley opposes House Bill 1099, and we urge you to vote against it.
Thank you for your consideration.
C:\UserslcbainbridgeWppDatatiLocallA1icrosoftliVindowsl'1'emporary Internet Files\Content.Ontlookk AC71III'Pldraft letter
opposing NB 1099 by Erik Lamb.docx