Council’s first item of business at Tuesday’s formal meeting was to approve the awarding of the 2020 City street sweeping contract to AAA Sweeping, LLC (AAA). The Request for Bid also included up to four one-year renewals. AAA was the sole bidder with a successful bid of $560,000. Approval was unanimous.

In early 2019, Spokane County Commissioners convened a Task Force with a goal of analyzing the region’s current jail facilities to ascertain if they suitably serve the needs of the regional community, then developing recommendations to the County Commissioners. Maggie Yates, formerly associated with The Southern Poverty Law Center, was the Spokane Regional Law & Justice Coordinator making the presentation. Her report to Council was intended to provide information on the progress of that analysis with insight into future courses of action.

Aside from the ongoing discussion regarding the need for a new jail or what a new jail would look like, there is a general goal of reducing the jail population. Recommendations to achieve that goal include: Changing current rules to permit 1) Incentivized Probation; 2) Electronic Home Monitoring; 3) Supervised Release; 4) Expanded Bail Review; 5) Limited Overnight Release; and 5) Expand the use of Behavioral Health resources to reduce the need for incarceration.

The discussion isn’t limited to this area. Reduction of standards requiring incarceration has prompted, according to statistics where such programs have been applied to, an increase the crime rate. Generally, law enforcement has not been in favor.

Information on four Public Works projects was reported in preparation for future Council approval:
1. Pavement resurfacing on Indiana Avenue from Evergreen to Sullivan. The project will patch defective asphalt, grind and overlay two inches of hot mix asphalt, update pedestrian ramps to ADA standards, modify traffic signals, and revise traffic islands to improve safety. Total estimated project costs are $3,156,400.
2. Discussion on how best to address the worsening traffic problems at Sprague and Barker. The City has analyzed and developed detailed concepts and costs for improving that intersection with either a signal or a roundabout. Those concepts were presented to the public at a neighborhood meeting on February 20th. The project budget currently only provides funding for design and right-of-way. The City will need to pursue additional funding to complete the alternative (signal or roundabout) that is selected. Additional required funding above what is currently available is: Signal, $2,309,500; Roundabout, $2,270,000. Total estimated project cost will be: Signal, $2,825,000; Roundabout, $1,754,500. Council will decide on a preferred alternative in March.
3. Sidewalk projects; East side of Adams Road between 16th and 22nd Avenues. Estimated Cost: $507,051; Ella Road between Broadway and Alki on the west side of the road. This Project will widen the pavement and install new sidewalk and curb. Estimated cost: $402,739. Also included is a project to fill the sidewalk gap between Appleway Trail and Riceland Lane with new sidewalk, curb, and gutter. Estimated cost: $153,625.

The City recently was made aware of Washington State Department of Transportation’s (WSDOT) intent to sell four parcels of their property, approximately 45.73 acres immediately east of Flora Road, south of the Union Pacific tracks and north of the Spokane River. The purchase price is $2,091,600. If approved by Council, the property is intended to be used for park purposes.

Staff is currently seeking authorization from the Washington State Recreation Office (RCO) to apply for a grant of up to $1 million to reimburse the City for acquisition costs should it go ahead with the purchase. Council consensus was unanimous to pursue the acquisition and grant application.
At Council next week: Action on the Sprague and Barker intersection; CenterPlace Roof Replacement bid award; and Adoption of a Federal Legislative Agenda.

Tuesday’s Council meeting was a flurry of action including unanimous adoption of a signage ordinance (Ordinance 20-001) allowing wall signs adjacent to the Aesthetic Corridor and passage of Ordinance 20-002, enabling the City to participate in a sales tax rebate of .0073% to be used for “qualifying expenses relating to affordable and supportive housing”.

The Spokane Valley Arts Council donated three sculptures to the City: Huckleberry Daze and Indomitable Spirit by Jerry McKellar; and Rock Star by Bob Wilfong. The sculptures will be put in storage pending suitable locations in the City.

Appointments are made annually to various committees on which the City is represented. Mayor Wick, with the approval of Council, made the following appointments:

Spokane Valley Planning Commission: Fred Beaulac and Sherri Robinson are appointed for 3-year terms, and Matthew Walton for a 1- year term.

Lodging Tax Advisory Committee: This committee is comprised of five members; two members from businesses required to collect the tax, two members involved in activities authorized to be funded by the tax, and one City Councilmember who acts as the Chair.  Colleen Heinselman of Hampton Inn Suites will represent those who collect the tax, and Greg Repetti from the HUB Board will represent those involved in authorized activities.

Spokane Housing Authority: This entity is dedicated to increasing safe affordable housing and providing opportunities to people experiencing barriers to housing. Tes Sturges is appointed to a 5-year term as a Spokane Housing Authority Board Commissioner.

Deputy Mayor, John Hohman, presented an updated report on the status of City Hall. After the City moved into City Hall in early September 2017, the usual punch list items for repair were systematically addressed by Meridian, the contractor. However, it became apparent that the curved wall on the east side of Council chambers was settling. The City monitored the settling, hiring several experts to analyze the extent of the problem and potential solutions.

On February 21st of 2019, the City filed a claim against Meridian Construction under terms of the construction contract to resolve the problem. Ten micro-pilings were installed in late 2019 to arrest the subsidence and properly support the existing curved wall foundation. A temporary wall has been installed to separate the meeting area of Council Chambers from construction currently taking place. A structural engineer has been retained to assist in determining the extent of necessary repairs and their completion. The City is pursuing a solution that ensures the building will be restored to its 100-year estimated life without any expense to the City beyond the initial construction costs.

In 2015 the City completed a Sullivan Corridor Study documenting the failing condition of the Sullivan-Wellesley intersection. A successful grant application for a Congestion Mitigation & Air Quality (CMAQ) grant was awarded to build either a signalized or single-lane roundabout intersection.

Spokane County has been working on the Bigelow Gulch Corridor Project (Bigelow) which will connect Bigelow Gulch to the Sullivan/Wellesley intersection, significantly increasing traffic flows beyond the 2015 study. The City and County have been closely coordinating the timing of each project to minimize disruption of traffic.

In 2018, Council, after hearing evaluations of both a signalized and roundabout intersection, opted for the signalized intersection. Public input at the time heavily favored the signalized intersection as did the East Valley School District. The District’s concern was their considerable loss of usable land that a roundabout would cause vs. the lighted intersection.

The City is currently on target with 90% of the project designed and right-of-way negotiations progressing, with construction slated to begin in 2021 in concert with the Bigelow project. At the February 11 meeting, Mayor Wick announced that he intended to revisit Council’s previous decision to proceed with a lighted intersection.

If the project were re-considered with a roundabout, the construction start date would be set back from mid-2021 to at least late 2022. Doing so would dislocate coordination with the Bigelow project and may jeopardize grant money that needs to be committed.

Aside from the disruption of re-starting, re-planning, and re-negotiating, the project cost to the City would jump from an estimated $1,772,473 to $3,150,000. Although no consensus was taken, the idea of a roundabout did not appear to have a majority.

Tuesday’s City Council meeting was a special meeting in the form of a workshop designed to outline for Council what might be expected from the City’s various departments. The presentation is a look into future issues the City will be addressing in the remainder of 2020. The first item was an in-depth explanation of the City’s reserves.

Moody’s bond rating service awarded the City of Spokane Valley an Aa2 rating which is the practical maximum that a city of our size can attain. The Valley has only two debt obligations. The first is for CenterPlace, the second is for City Hall. The exceptionally strong financial position the City maintains together with prudent management of its financial resources has consistently produced favorable results from the Washington States Auditor’s annual audit reinforcing Moody’s rating.

One financial management tool employed by the City is maintenance of a fund balance of 50% of annual recurring expenditures. In layman’s terms, that means keeping a cash balance on hand to meet six months of budgeted expenses. Why so much? The formula can be found in the Council Agenda for February 11, 2020 on Spokanevalley.org.
The abbreviated explanation is that the City, being a contract city, accomplishes a great deal of its capital projects with grant assistance. The City’s strong financial position is paramount in acquiring those grants. However, the grants are awarded as reimbursements after the project is completed which requires that the City to front the money, then apply to be made whole.

The City has two main sources of income: property tax and sales tax. The property tax is collected twice a year by the County, who then reimburses the City for its share. The sales tax is paid to the state who then sends the City its portion. Neither is a smooth, even cash flow. If the City didn’t maintain its 50% reserve, it would have to tap into the short-term loan market which would, at current rates, cost up to an estimated $1 million per year.

So, what happens if/when the City has more than a 50% reserve? After ensuring that no encumbrances exist on an annual surplus, the excess over 50% is swept into a capital reserve fund to be applied to future capital needs. A Potential and Pending Projects worksheet prioritizing projects for Council consideration is constantly maintained. That is how the City is able to fund infrastructure improvements or attract and participate in projects such as the Barker/BNSF Rail crossing. Maintaining a strong reserve position pays dividends.

Another major problem area is the homeless population, not only in the City but in the entire area. In the City, there are three categories of homeless camps:
1) Camping on city-owned properties where prohibited - Balfour Park, CenterPlace/Mirabeau Meadow, and City Hall, 2) Camping on City-owned property, and 3) Camping on private property.
1. Homeless campers are immediately contacted as soon as police or the City is made aware to inform them of the law and that they must leave immediately. If they refuse, police respond, issue a citation and remove the individual(s) from the property.

2. The City outreach team engages the camper(s) with the goal of moving them to suitable housing or finding appropriate services. This team will work with the camper to obtain housing and address other needs if they are cooperating and attempting to assist on their own behalf.

3. Campers on private property are the responsibility of the property owner. The City will work with the owner to remove the camper(s) as City law allows.

From comments about Spokane being the only jurisdiction addressing the homeless problem, it appears there is a perception that Spokane Valley isn’t paying its share of the expense generated in meeting the homeless problem. While Spokane Valley does not intend to become a magnet, it has consistently participated in area programs with funding amounting to approximately one third of regional expenditures. To say or imply otherwise is not factual.

Please join us for the next Council meeting on Tuesday, February 18 at 8am. 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.

When the City was incorporated in 2003, it adopted the County’s regulations for signage within the City. In 2007 the City adopted its Uniform Development Code, attempting to define aesthetic corridors where specific signage such as monument signs were permitted, while restricting usage of wall signs.

The City’s Planning Commission has been reviewing those situations, conducting a Study Session on a proposed Code amendment on October 10th, 2019. The purpose of the review is to update rules governing “aesthetic corridors” which currently only permit monument signs to allow wall signs such as already appear on City Hall and many of the dealerships along Auto Row.

On October 24th, the Commission, after a Public Hearing, voted 4-0 to recommend to Council that a Code Text Amendment broadening signage capabilities be approved. The proposed ordinance, now designated as Ordinance No. 20-001, was heard this evening at a first reading and passed unanimously to a second reading.

In the 2019 state legislative session, a bill was passed authorizing local jurisdictions to receive a rebate of a portion of state sales and use tax collected within that jurisdiction. The funds cannot be used to fund construction or funding of a homeless shelter but can be used for longer-term low-income housing vouchers. The rebate is .0073% of the total collected sales tax which for Spokane Valley amounts to approximately $178,000.

This rebate from the state will not result in an increase in sales tax paid by City residents. In order to qualify to receive the funds, the City must adopt a resolution of intent, which it has done, followed by adoption of an enabling ordinance authorizing receipt of the rebated funds. Ordinance 20-002 heard this evening as a first reading does that. It was unanimously advanced to a second reading.

Last month Staff discussed with Council the possibility of a joint project application to US Department of Transportation’s (USDOT) Infrastructure for Rebuilding America (INFRA) grant program for rebuilding America’s aging infrastructure. USDOT issued a call for projects on January 13th for Fiscal Year 2020 projects. Approximately $900 million is available for qualifying transportation projects.

This proposal is for a shared INFRA application for the Sullivan Road and Bigelow Gulch/Forker Road Improvement Projects. By joining with Spokane County and combining the connecting projects, the remaining costs of the County’s Bigelow-Gulch/Forker project and the City’s North Sullivan corridor improvements would be captured as a single project with consolidated costs.

Projects are classified as “Large” or “Small” with awards between $25 million and $5 million respectively. INFRA funds are limited to 60% of a project’s total cost, while cumulative federal funding cannot exceed 80%. Priority is given to projects that minimize the need for federal funding.

The City’s North Sullivan corridor improvements include the reconstruction of the Sullivan Road/Trent Avenue (SR-290) interchange including the Sullivan bridge over SR-20, various updating intersection improvements, and continuous lighting improvements along the corridor. The County’s portion of the proposed project is estimated to cost $15-20 million. The City’s share is estimated at $35 million, for a total project cost of $50-55 million.

Those funds would be from a combination of an INFRA grant up to 60%, with other federal funds up to 20% ($7 million) from other yet to be identified sources. Matching non-federal funds required of the City would also amount to $7 million. Sources for those funds might be Transportation Improvement Board, Freight Mobility Strategic Investment Board, Washington Legislature appropriations, private contributions and/or City funds. The City will retain a consultant to prepare the INFRA application, with reimbursement for the County’s proportionate share. Estimated cost for the consultant is $80,000, split $24,000 for the County’s share and $56,000 to the City.

Per the interlocal agreement authorized by Council at its January 21st meeting, the City will manage the consultant’s contract and be the lead applicant for the INFRA application. Motion to authorize the City Manager or his designee to finalize and submit the application for the INFRA grant for the Sullivan Road and Bigelow Gulch/Forker Road Improvement Projects passed unanimously.

There will be no Council meeting on February 11th. Instead, a Budget Workshop will be held in Council Chambers commencing at 8:30AM, lasting until 2:00PM. The public is invited to attend.

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