Spokane Valley City Council Highlights September 2023

Your Connection to the Spokane Valley City Council

September 26, 2023

This meeting of the Spokane Valley City Council opened in its Formal Format. In the Council Member Reports section, Deputy Mayor Higgins announced that the City had completed its annual audit by the State Auditor’s Department with a “Clean” declaration. Simply put, the City’s Finance Department had once again performed its duties in a manner its citizens should be proud.

City staff have recommended applying for a Department of Ecology Water Quality Combined Funding Program grant presented at Council’s September 12th meeting. The application is for the design of stormwater improvements between Argonne Road and the Mansfield/Montgomery Roundabout. The estimated project cost would be $250,000 funded by an 85% DOE grant ($212,500) and a $37,500 City match. The design would be approved by DOE in 2026; the City would apply for a DOE construction grant with construction work starting in 2028. The motion to apply for the grant passed unanimously.

At its September 5th meeting, Council together with its lobbyist, Briahna Murray, developed a draft Legislative Agenda. This year, as in the past, the City continues to elevate public safety, including the enactment of serious policies to address the fentanyl crisis. Other items of interest on the City’s list are:

• Request to ensure the state’s policy on possession of controlled substances can be implemented with readily available treatment services and swift and meaningful consequences for those who fail or lack the willingness to complete treatment.

• Continued request to increase investments in alternative response teams.

• Continued request to re-establish ‘reasonable suspicion’ as the standard for vehicle pursuits.

• Request to further modify condominium regulations and liability in support of removing barriers to the construction of housing.

• Explore potential changes to the Growth Management Act related to simplifying land swaps and allocating adequate funding to effectively implement state planning directives.

• Explore workable solutions to reform regulations that cause increases to project costs such as establishing Disadvantaged Business Enterprise (DBE) goals that consider the availability of DBEs regionally rather than state-wide.

• Continued commitment to providing tax relief to our citizens, defending local control, and protecting and enhancing local state-shared revenues.

Discussions afterward centered on adding sections that:

• Add a $600,000 request to help fund a new regional cross-country course facility,

• Exempt homes being rebuilt after being lost to wildfire from new state building code requirements banning natural gas,

• Includes a statement encouraging the state to address mental health,

• Clarify that alternative response teams include models where an officer is present when responding to calls or incidents.

The motion to approve the proposed 2024 State Legislative Agenda was postponed to next week pending further modifications.

The Sullivan Road/Trent (SR 290) interchange connects rural freight traffic with on of the region’s busiest urban corridors. Large employers, including the Spokane Industrial Park and Amazon, move their goods and employees via Sullivan Road and Bigelow Gulch within Spokane County. The connection of Bigelow Gulch Road with Sullivan Road had dramatically impacted the operations of that interchange. Peak hour traffic volumes are expected to increase from the current 1,400 trips to 2,400 future trips now that Bigelow Gulch improvements are progressing. Without reconstruction of that interchange the level of service is expected to decrease to a ‘Failed’ rating by 2030, ultimately restricting economic growth in the region.

In 2021, the City selected KPFF Consulting Engineers (KPFF) to evaluate the most efficient interchange designs which they did. However, since federal funds are involved, all the federal requirements must be met prior to federal funds being released. After several months of negotiations and audit delays, a final negotiated fee of $3,195,832.68 was reached for the services of KPFF. The total project budget, including additional City participation and federal funds is $4.684,500. The motion to authorize the finalization of the agreement with KPFF passed unanimously.

The City has been struggling since its inception with how to finance its road system without relying on its General Fund to supply the annual deficit from existing funding sources. Currently, that deficit is about $8 million under what a projected fully funded pavement preservation program calls for.

One of the partial solutions is a Transportation Benefit District (TBD). A TBD would allow the City to levy a license tab fee. That fee can be variable, but the one under consideration is a $20 charge. Unlike state fees of the same type, this City fee will be dedicated exclusively to road maintenance. Prior to enactment, there will be a public hearing laying out the details of a TBD, its formation and usage. Details and specifics on fee usage can be found at www.spokanevalleywa.gov.

Consensus was reached to set a public hearing for the enabling Resolution on a TBD for October 3, 2023.

Property taxes are a major source of recurring City Revenue representing $13,824,900 (22.19%) of the City’s 2024 budgeted recurring revenue. However, the City actually receives less than 10% of the overall collected property taxes in its jurisdiction. Who then receives the largest portion of those revenues? Three taxing entities compete for that title.

On a $400,000 home, school districts (education, local and state) and fire districts take the majority. The abbreviated table below defining collections in the Central Valley School District reveals:

Spokane County; $299.57; 8.0%

City of Spokane Valley; $332.49; 8.9%

Fire District No. 01 (voted); $888.58; 23.8%

Central Valley School District (voted); $1,195.20; 32.0%

State Education Tax; $885.31; 23.7%

Spokane County Library District; $136.61; 3.7%

State law sets the maximum levy rates for property taxes in a jurisdiction. The formula for calculating the rate is to take the total levy, dividing it by 1,000 and then dividing that number by the total assessed value of the taxing jurisdiction. The County Assessor’s Office determines that assessed value. That value currently stands at $17,576,115,762, producing a levy rate of $0.786573 per $1,000 of assessed value. Discussion on whether to take the automatic 1% property tax increase resulted in a spirited discussion, with Council opting not to take it once again.

It is probable that new construction after July has not been included in that calculation, thus it’s possible that the levy rate might decline. The passage of an ordinance is required to levy and collect 2024 property taxes. That action will be on the October 24th Council Agenda.

Under the terms of the Edward Byrne Memorial Justice Assistance Grant the Spokane Valley Police Department can receive $24,166 which it would use for security enhancements at its Precinct.

The City contracts with Spokane County for the City’s criminal detention services pursuant to an interlocal agreement. Spokane County operates the Geiger Corrections Center as part of that agreement. Recently, the County Commissioners passed a resolution to place a 0.2% sales tax increase on the November election ballot for criminal justice, public safety, and behavioral health purposes from 2024 through 2054 with the understanding that a new jail would be constructed.

Pursuant to state law, Spokane County would, if the ballot measure is approved, receive 60% of the total sales tax collected. The remaining 40% would be distributed among the incorporated cities based on population. By that measure, the city would receive approximately $3 million based on 2022 sales tax collections. That number is, of course, subject to economic fluctuations. The information on the measure is extensive. For a full explanation of the entire proposal, please go to www.spokanecounty.org.

City Hall was completed and occupied in early September 2017. Since that time many significant construction and/or design defects have been discovered.

After setting aside $5.3 million to address the problem, the City has completed some of the necessary repairs since the initial discovery of the defects.

To date, the City has opted for a non-standard delivery method for the major repairs that are known or may be needed. The method is known as the Progressive Design Build (PDB) process. PDB is a process in which both the design and construction of a project are procured from a single design-build entity that is selected competitively by the City. Under this process, Garco Construction has been chosen as the contractor.

Garco’s phased scope of work includes these key elements and planned time.

• Council Chamber’s East Radius Exterior Wall

• Reconstruction of the radius is progressing after a delay in installing permanent pilings.

• Council Chamber’s Interior Space

• Reconstruction of interior space continues. Completion is anticipated in November.

• Interior Building Doors. Throughout City Hall there are 10 interior doors that will be removed and replaced/reinstalled with new framing and connections.

• Removal/replacement continues awaiting replacement doors.

• Efforts will take place while chamber’s work continues.

• Roof and Attic Repairs/Replacement

• Performed work to temporarily secure roof damage until spring.

• Full roof and attic work is anticipated for spring and summer of 2024.

• Council Chambers Completion

• Due to the delay in the east wall foundation installation, Council Chambers will not be completed until the first of the year.

Staff will continue to update Council and the City frequently as the project continues.

City Council meetings are held in the Great Room at CenterPlace until further notice. City Hall, however, is open for business during normal business hours. The Public is invited to Council meetings to participate in action items or public comment periods in person or via ZOOM. Call 509-720-5000 or www.spokanevalley.org prior to 4:00 p.m. for access instructions. Council meetings are broadcast on Comcast channel 14.

September 19, 2023

This Study Session of the Spokane Valley City Council opened with two action items before listening to the Outside Agency Presentations from 19 agencies applying for grants under the City’s revised Outside Agency Program. The first action item was a motion consideration to adopt the City’s Tourism Promotion Marketing Service Proposal.

On September 20th, 2022, Council adopted Ordinance 22-016 establishing a Spokane Valley Tourism Promotion Area (TPA). Pursuant to the TPA, the Spokane Valley Hotel Commission (Commission) was formed. The Commission, with Council approval, hired 116 & West as consultants to develop a five-year destination marketing plan starting with an 18-month marketing service plan.

This evening Council was presented for its approval: 1) a five-year Destination Marketing Strategic Plan, 2) a contract with 116 & West for $813,500 to provide destination marketing services through December 31, 2024, and 3) its approval of “Discover THE VALLEY and Spokane Valley, WA” (tagline) for branding the City’s tourism initiatives.

An outline of year one of the five-year plan includes development of: a brand and identity package, to include a total campaign, asset library, virtual visitor center, concepts, and a website. Also planned are social media properties, reputation management, local brand launch campaign, Spokane Sports support, paid media campaigns, earned media, and strategic account management. Progress checkpoints are outlined to monitor the progress and success of the program. A three-part motion, to 1) approve the five-year Destination Marketing Strategic Plan, 2) authorize the City manager to execute the contract with 116 & West for $813,500 for services through December 31, 2024, and 3) approve the selection of “Discover THE VALLEY” and Spokane Valley, WA for branding the City’s tourism initiatives passed 6-2, Wick and Peetz voting no.

For a complete presentation of the plan(s), please go to the City website: www.spokanevalleywa.gov.

In June, Council approved a contract with Spokane Sports for $300,000 to provide sports recruitment and marketing services for 2023 in conjunction with the marketing services provided by 116 & West. Under that contract, Spokane Sports is working with City staff to research and plan for a 2-kilometer cross-country course of city-owned park property together with adjacent Washington State Parks-owned property at Flora Road on the north side of the Spokane River. The course is intended to host a wide variety of events from premier competitions to serving the community’s needs.

The project cost is estimated to be $7 million. City staff are seeking $4.4 million from the Lodging Tax fund. The unfunded portion of the total will be requested through other granting agencies. The motion to authorize staff to submit a 2024 Lodging Tax Grant application in partnership with Spokane Sports for $4.4 million to partially fund construction of the planned cross-country course passed 6-1. Wick voting no.

Since its incorporation, the City has provided partial funding for local economic development and social services. By doing so, the City is contracting for services that it might not otherwise provide. Earlier this year, Council decided to increase the dollar amount of the available funding to a total of $200,000. That amount was split into two categories with separate consideration: $100,000 for Economic Development and $100,000 for Social Services.

The City has received proposals from 19 agencies for a total funding request of $557,864. These include eight Economic Development applications adding up to $235,000, and eleven Social Services applications totaling $322,864. Clearly not all grants can be awarded and, in most cases, requests cannot be awarded in full.

At this Council meeting each agency was permitted five minutes to present its case for funding. Council members individually consider the amount to award each applicant. If an agency does not get four or more votes, it will not get further consideration for funds.

The applicants requests in their categories are:

Economic Development ($)

APPLICANT REQUEST

Idaho Central Spokane Valley Performing Arts a 10,000
JAKT Foundation—CRAVE 40,000
JAKT Foundation—Farmers Market 30,000
SNAP Financial Access 75,000
Spokane Valley Arts Council 26,000
Spokane Valley Heritage Museum 19,000
Spokane Valley Summer Theatre 20,000
Spokane Workforce Council 15,000

Total Economic Development Funding Requested 235,000

Social Services ($)

Christ Kitchen 10,000
Elevations Childrens Therapy Resource Foundation 20,000
Greater Spokane Meals on Wheels 32,850
Inland Chess Academy 2,500
Joya Child & Family Development 14,300
NAOMI 20,000
Spokane Neighborhood Action Partners (SNAP) a 9,914
Spokane Valley Partners 100,000
Teen & Kid Closet 12,000
Widows Might 52,500
YMCA of the Inland Northwest 8,800

Total Social Services Funding Requested 322,864

Grand Total of both categories 557,864

Councilmembers will deliver their recommendations to the City’s Finance Director for grant awards for each agency selected. The total amount of the Councilmember’s awards cannot exceed $100,000 in either category. Agencies receiving four or more votes for a grant will be awarded the average of Council’s specific recommendations; however, an agency cannot receive more money than it applied for.

Council will make its final decision at its October 24th meeting.

September 12, 2023

This regular session of the Spokane Valley City Council commenced with a proclamation commemorating the 236th anniversary of the framing of the Constitution of the United States. This was followed by a public hearing, scheduled for tonight at Council’s August 29th meeting, on the revenues for the City’s 2024 Budget. This hearing, required by state law, is the third of eight opportunities for discussion of various aspects of the budget enroute to its final adoption. Of note: The City will once again forego the one percent automatic property tax increase. The $19,420,397 in budgeted capital expenditures will be partially offset by $9,507,426 in federal and state grants.

The 2024 recurring revenue estimate is $62,366,100 which is 10.54% greater than 2023 budget. The recurring expenditure estimate of $57,545.147 is 7.76% more than the 2023 budget of $53,260,793. Estimated budgeted recurring revenues currently exceed recurring expenditures by $4,820,953 or 7.73% of recurring revenues.

The full-time employee count will rise to 116.25, an increase of four employees. Three of those employees will be utilized in administering the Stormwater commitments authorized by Council earlier this year. The fourth will assume additional duties in the accounting department and our recording fee administration program responsibilities.

Funding Challenges:

• The national economy continues to experience volatility, especially the effect of inflation on City projects.

• Revenue levels insufficient to directly cover street operations and maintenance requiring augmentation from the City’s General Fund.

• Pavement preservation and railroad crossing projects (overpasses and underpasses) and other large street projects require funding beyond the City’s capabilities to provide.

• Establishing a Homeless program and identifying dedicated funding for the program.

This hearing was to gather information, so no action was taken.

On July 25th, 2003, Council approved Resolution 23-009, which declared its intention to assume responsibility for and establish a homeless housing program within Spokane Valley. The resolution further authorized the City to take over administration of recording fees related to housing and homeless services. State law requires that the City create a homeless and housing task force to administer the program. The task force is then required to develop a five-year plan for Council consideration and provide recommendations of the use of the recording fees to fund the program. The task force is to consist of:

• Spokane Valley City Council member

• County Representative

• Business representative

• School Representative

• Housing Authority representative

• Lived Experience representative

The motion to adopt Resolution 23-010 passed unanimously.

With the passage of Resolution 23-010 and the brief time frame in which to complete the required planning process Mayor Haley has recommended the following partial list of individuals to fill the task force appointments:

• Spokane Valley City Council member: Mayor Pam Haley

• County Representative: George Dahl or Chris McKinney

• Business representative: Lance Beck, Spokane Valley Chamber of Commerce

• School Representative: John Parker, Central Valley Superintendent

• Housing Authority representative: Arielle Anderson, Director of Housing Assistance

• Lived Experience representative: Daniel Aga

• Lived Experience representative: Kody Jerred.

The motion to approve the Mayoral appointments passed 5-1.

The Legislature has provided one-time funding in the 2024-2025 operating budget to help local parks departments maintain their parks. The Washington State Recreation & Conservation Office (RCO) has a new grant program under which we can request up to $100,000 to address deferred maintenance of local parks. The City would like to request an RCO grant to repair and resurface concrete courts at Edgecliff and valley Mission Parks to bring both facilities up to ADA standards. The motion to approve applying for the grant passed unanimously.

A US Department of Transportation (USDOT) program aimed at supporting projects in economically disadvantaged communities to increase affordable, assessable, and multimodal access to daily, regular destinations is accepting grant applications. Staff were approached by Spokane Transit Authority to develop a joint application with the City of Spokane to cover its Route 94 in the Valley. A letter of intent is required from the Mayor. The motion to approve submittal of a joint application together with a letter of intent from Mayor Haley passed unanimously.

Washington State Department of Transportation (WSDOT) is anticipating the awarding of $150 million of National Highway Performance Program federal funds for preserving roadways that are part of the National Highway System (NHS). For Spokane Valley, eligible street segments are Principal Arterial Streets. Emphasis is on rehabilitation over reconstruction with safety as a consideration. The maximum funding award per project is $10 million. A maximum of three projects can be submitted by an agency. No local match is required. The City has identified three eligible projects.

Project Est. Total Est NHS Req

Sprague Preservation (Bowdish to McDonald) $3,100,000 $1,400,000

N. Sullivan Preservation (River to Kiernan Ave.) $3,200,000 $1,500,000

S. Sullivan Preservation (8th to 24th Ave.) $4,000,000 $3,000,000-$3.5 mil

The motion to approve applying for the listed grants passed unanimously.

An opportunity to apply for a Department of Ecology Water Quality Combined Funding Program (WQC) grant. If successful, the application would be for the design of stormwater improvements between Argonne Road and the Mansfield/Montgomery Roundabout. The estimated project cost would be $250,000 funded by an 85% WQC grant ($212,500) and a $37,500 City match. The design would be approved by DOE in 2026; the City would apply for a DOE construction grant with construction work starting in 2028. Consensus was unanimous to pursue the grant.

On September 20th, 2022, Council adopted Ordinance 22-016, establishing a Spokane Valley Tourism Promotion Area (TPA). Pursuant to the TPA, the Spokane Valley Hotel Commission (Commission) was formed. The Commission, with Council approval, hired 116 & West as consultants to develop a five-year destination marketing plan with an 18-month marketing service plan. Council reached unanimous consensus to bring back a motion at its next meeting to 1) present its five-year Destination Marketing Strategic Plan, 2) execute a contract with 116 & West for $813,500 to provide destination marketing services through December 31, 2024, and 3) secure approval of “Discover THE VALLEY and Spokane Valley, WA” (tagline) for branding the City’s tourism initiatives.

The City has, since its inception, been struggling with the problem of dealing with homelessness. Over the past few months, staff and Council have been jointly working on a Spokane Valley Homeless Action Plan (Plan). The intent of the Plan is to provide a roadmap to address, reduce, and prevent homelessness in the City. While the Plan was being developed, Council passed Resolution 23-005 declaring its intention and commitment to operate its own homeless housing program in order to eventually be the direct recipient of federal and state homeless funds.

The Plan’s introductory pages discuss guiding principles and the three primary objectives:

• To prevent homelessness from occurring in the first place whenever possible.

• To reduce existing levels of homelessness.

• To improve the quality of life for all Spokane Valley residents.

The Plan will continue to be developed for achieving the above strategies, including background information related to data, funding, and existing interventions, etc.

To review the full draft of the City’s Plan, please go to www.spokanevalleywa.gov.

September 1, 2023

This first Spokane Valley City Council meeting opened in the study session format with three action items topping its agenda. The first agenda item was a Motion Consideration to address the Ridgemont Estates Stormwater Improvements consultant contract. In 2023 the City’s annual stormwater utility rate increased from $21 to $58 per year, driven by stormwater demands established by the Department of Ecology (DOE). A portion of the revenue raised (approximately $350,000) is needed for designing a system for stormwater runoff in the Ridgemont Estates neighborhood in the southeast corner of the City east of Sullivan Road between 16th and 24th Avenues.

Residential development in this neighborhood has been increasing since the 1970s. Early construction of stormwater facilities was done in a patchwork system of ponds, catch basins, pipes, and ditches. Staff maintains an inventory of known structures and facilities in the area, but knowledge of the entire system is incomplete. What is a regular occurrence is flooding streets, washouts, and property damage when stormwater systems overflow.

The area is a candidate for street repair and replacement, but unknown stormwater and groundwater challenges have held those repairs in abeyance. An analysis of the existing stormwater facilities is needed and the new funds from the increase in stormwater assessments will provide much needed help to address the problem. The motion to approve a contract with Osborn Consulting Incorporated in an amount not to exceed $379,397 for the Ridgemont Estates Stormwater Improvement project passed unanimously.

In the fall of 2022, Spokane Regional Transportation Council (SRTC) was awarded funding from the US Department of Transportation’s Safe Streets and Roads for all (SS4A) program. The purpose is to improve roadway safety by lowering or eliminating roadway fatalities. SS4A funds will provide for the creation of a regional, comprehensive safety action that uses recorded crash data to evaluate our transportation network to identify safety trends, risks, and recommended improvements. A regional plan will enable data to be evaluated with the goal of identifying additional trends or “hot spots.”

A $400,000 grant to SRTC requires a $100,000 match which is proposed to be divided: $55,000 from SRTC and $15,000 each from Spokane, Spokane County, and Spokane Valley. The motion to approve the City’s participation with $15,000 was approved unanimously.

At Council’s August 15th meeting, a Motion Consideration on a memorandum of understanding (MOU) with Water District #3 (WD#3) regarding the Wardson Road and Buttercup Street Waterline Replacement Project which overlaps City street segments that are eligible for improvement work was proposed.

Water District #3 will pay for the costs to upgrade their water main plus a portion of the construction management and material testing costs of the project. The goal of the MOU is to avoid the patchwork applications of repairs to streets when performed without coordination. The total combined cost is estimated to be $408,622. The City’s share is approximately $197,941, WD#3’s share is estimated to be $210,681. The motion to authorize the City Manager to finalize the MOU with Water District #3 passed unanimously.

Each year the City, together with its lobbyist, Briahna Murray, develops a draft legislative Agenda. This year, as in the past, the City continues to elevate public safety, including the enactment of serious policies to address the fentanyl crisis.
Other items of interest on the City’s list are:

1. Request to ensure the state’s policy on possession of controlled substances can be implemented with readily available treatment services and swift and

meaningful consequences for those who fail or lack the willingness to complete treatment.

2. Continued request to increase investments in alternative response teams.

3. Continued request to re-establish ‘reasonable suspicion’ as the standard for vehicle pursuits.

4. Request to further modify condominium regulations and liability in support of removing barriers to the construction of housing.

5. Explore potential changes to the Growth Management Act related to simplifying land swaps and allocating adequate funding to effectively imple-

ment state planning directives.

6. Explore workable solutions to reform regulations that cause increases to project costs such as establishing Disadvantaged Business Enterprise

(DBE) goals that consider the availability of DBEs regionally rather than state-wide.

7. Continued commitment to providing tax relief to our citizens, defending local control, and protecting and enhancing local state-shared revenues.

No action was taken. The item will be returned for discussion.

On a different note, a discussion of City sponsorship of City-wide events (Signature Event Program) was introduced. Such events create a sense of identity and place, offering opportunities for citizens to interact and celebrate their city. Such events have included Valleyfest, Tree Lighting Ceremony, Farmers Market, and car shows.

The City has traditionally provided some funding through two competitive grant programs: the Outside Agency Grants and Lodging Tax Allocations. Other non-cash support comes in the form of field lighting, marketing, road closures, street sweeping and/or use of City facilities. The City is exploring the possibilities of such a program to assist in planning and financing ‘cornerstone’ events to provide consistency and dependability.

Consensus was unanimous to proceed to a recommendation to apply for the three projects. Final cost estimates will be provided prior to action.

A regional coalition to address homelessness has been the subject of meetings over the past several weeks. Mayor Pam Haley, Councilman Tim Hattenberg, Deputy City Manager Eric Lamb, and City Engineer, Gloria Mantz have been in attendance on behalf of the City. The group is attempting to form a public development authority (PDA) named Spokane Regional Authority for Homelessness, Housing, Health, and Safety.

It is proposed to be funded with all the funds currently dedicated to homelessness by the various group participants. An interlocal agreement (ILA) will be prepared to form the PDA. The ILA will require a commitment from the participants to within a 90-day startup period, transferring their funding, staff, and contracts to the PDA. However, last week the Spokane City Council passed a resolution that substantially places the coalition in doubt. The issue is under consideration.

View Past Spokane Valley City Council Highlights

The City Council holds more formal meetings the second and fourth Tuesday of each month and holds Study Sessions on the first and third Tuesday of each month. Agendas, minutes and background materials can be found on the City’s website: www.SpokaneValley.org by 5pm the Friday before each meeting.

Contact City of Spokane Valley:

10210 E. Sprague Ave.
509-921-1000
www.SpokaneValley.org