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2003, 09-09 Regular MeetingAGENDA rPOI&N CITY COUNCIL REGULAR MEETING Tuesday. ' eptember 9, 2003 CITY HALL AT REDWOOD PLAZA 11707 East Sprague Avenue, First Floor CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION Pastor Linda Crowe, United Church of Christ ROLL CALL APPROVAL OF AGENDA INTRODUCTION OF SPECLAL GUESTS AND PRESENTATIONS COMMI7T .E, BOARD. LIAISON SUMMARY REPORTS MAYOR'S REPORT: Proclamations: National Payroll Week Constitution Week a. Approval of Regular Council Meeting Minutes of August 26, 2003 b. Approval of Study Session Minutes of September 2, 2003 c. Adoption of 2004 Goals d. Approval of Claims: $1,348,976.96 e. Approval of Payroll: 5108,015.01 OLD BUSINESS: None Council Requests All Electronic Devices be Turned Off During Council Meeting Cuvncil Agenda 09.09 - 03 Regular Meetinr Page I of 2 PUBLIC COMMENTS For members of the Public to speak to the Council regarding matters NOT on the Agenda. Please state your name and address for the record and limit remarks to three minutes. PUBLIC HEARINGS: Proposed Budget Amendment: An ordinance amending Ordinance No_ 62 pa zed by the City Council March 27. 2003 which adopted a budget for the period of March 31, 2003 through Dumber 31, 2003. (l) Open Public Hearing (2) Citizen Comments on Proposed Ordinance (3) Close Public Hearing CONSENT AGENDA Consists of items considered routine which arc approved as a group. A Councilmember may remove an item from the Consent Agenda to be considered separately. I . 7 a 6:110 P.M. NEW BUSINESS 2 Ordinance No. 03 -080 Authorizing Interlocal Agreement with Public Facilities District - Second Reading [public comment] 3. Ordinance No. 03-079 Budget Amendment Ordinance - First Reading [public comment] 4. Motion: Consideration of Hotel/Motel Lodging Tax Advisory Conunittee Recommendation 5. Ordinance No. 03 -078 Zoning Code Compliance - Second Reading [public comment] 6. Ordinance No. 03-081 Hearing Examiner Ordinance - First Reading [public comment] 7. Ordinance No. 03 -067 Junk Vehicle Ordinance - First Reading [public comment] 8. Resolution No. 03 -045 Accepting Conveyance of Park Properties 9. Contract: Motion to Approve Intcrlocal Agreement between Spokane County and the City of Spokane Valley Relating to the Ownership, Funding, Operation and Maintenance of Parks. Open Space, Recreation Facilities and Programs [public comment] 10. Motion to Adopt Citizen Participation Plan PUBLIC COMMENTS (Maximum of three minutes please; state your name and address for the record) PENDING LEGISLATION ADMINLSTRATIVE REPORTS: 11. Staff Report: Conceptual Framework for a Unified Development Code INFORMATION 12. Proposed Methodology for Street Vacation 13. Status of Sullivan Road and 4` Avenue Signal Project 14. Minutes of Planning Commission 15. Status of Previous Public Comments/Concems: a. Mr. & Mrs. Stiles: Sargent and Montgomery Street Traffic Issues, Barricade follow -up b. Robert Lowe: Timberlane Road Zoning and Code Enforcement Issues ADJOURNMENT FUTURE SCHEDULE Regular Council Meetings are held the 2" and 4 Tuesdays of the month, beginning al 6:00 p.m. Council Study Sessions are held on the off Tuesdays of the month, beginning at 6:00 p.m. Other Upcoming Meetings/F. vent•: Sept 17, 2003, "Conversation with the Community" 6:30 p.m.. Central Park Condo Or, 6011 E, 6"' Ave Sept 24, 2003, Public Transportation Improvement Conference, Spokane Transit Bd M g, 1:00 p.m. Sept 30, 2003, No Study Session Meeting Council Agenda 09.09 -03 Regular Meeting Page 2 of 2 DRAFT MINUTES City of Spokane Valley City Council Regular Meeting August 26, 2003 Mayor DeVleming called the City of Spokane Valley Regular Meeting to order at 6:00 p.m. Attendance: Councilmcmbers: Michael DeVleming, Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Richard Munson, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember Staff Present: David Mercier, City Manager Nina Regor, Deputy City Manager Stanley Schwartz, Interim City Attorney Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Mike Jackson, Parks & Recreation Director Neil K.ersten, Public Works Director Kevin Snyder, Current Planning Manager Tom Scholtens, Building Official Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk Absent: Diana Wilhite, Deputy Mayor (excused) PLEDGE OF ALLEGIANCE: Mayor DeVleming led the Pledge of Allegiance. INVOCATION: Pastor Steve Williams of New Life Assembly of God gave the invocation. ROLL CALL: City Clerk Bainbridge called roll. APPROVAL OF AGENDA: Mayor DeVleming said that the Proposed Tourism Promotion Area Administrative Report will be moved to Committee, Board, Liaison Summary Reports (with public comment: taken on that item immediately afterward); that item 115 will be removed and brought back at a later date; that we are adding item #7a Dangerous Dog Review Process; and 11 a Review of Parks Agreement Negotiations Progress. It was moved by Councilmember Denenny and .seconded by Councilmember Munson to approve the agenda as amended. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: None COMMITTEE, 8OA}21), LIAISON SUMMARY REPORTS: Councilmember Munson reported he and Councilman Schimmels attended a very beneficial training session with AWC on the budget process. Councilmember Flanigan reported that the Hotel/Motel Tax Committee considered the grant requests, and that Councilman Flanigan requests that this item be placed on next week's study session agenda so that the committee can be present and answer council questions regarding the. funding allocations. He mentioned he has the proposals should council wish to review them; he thanked the committee for their work, and added that he felt the process was done in a very fair manner. Councilmember Flanigan said this Tax Committee is strictly an advisory committee and final funding decisions will be left to council discretion. Some of the committee members included Councilmember Flanigan, two representatives from entities which collect the tax., and two representatives from entities eligible to receive the funds. Councilmember Taylor said he would Council Minutes O8-26.03 Page 1 of 7 Date Approved by Council: DRAFT like to have the stakeholders present at the next study session so that council may receive input from those entities. Mayor DeVleming suggested leaving that opportunity open. Attorney Schwartz suggested that if council is going to substantially modify any of the recommendations, that they might want to seek additional committee input. Mayor DeVleming invited public comment: Troy Dressen, 15015 Indiana, Spokane Valley: stated he would like to see funds given to the experts in the field who work extensively with tourism and who have worked in that capacity for long periods of time; he encouraged allowing the hotel /motel association to give more specific recommendations. Jeff Fox, General Manager, Mirabeau Park Hotel (formerly Spokane Valley Doubletree): said he serves on the committee; that the room tax was a self - imposed tax to create a fund to be able to reinvest in the area from which it was generated; that the criteria he used in judging each proposal was how many heads and beds it would generate so that it would replenish the aforementioned fund. Ron Anderson, Represents Boards of the Spokane Regional Convention and Visitor's Bureau, the Sports Commission, and the Hotel/Motel Association: said the two eminent marketing organizations with proven results in this region are the Spokane County Visitors and Convention Bureau, and the Spokane Regional Sports Commission; that they support the pure use of lodging tax dollars in marketing to increase heads and beds; he said the current recommendation is for the CVB to receive 30% of the available funds and feels this is not a good partnership; he asked council to examine each recommendation to see if that proposal will put heads in beds. .Jodi Sander, Chair, Valley Tourism Committee and General Manager of Holiday Inn Express: said the • lodging tax money collected must be reinvested into events that bring business back to the hoteliers as soon as possible; she does not support use of the funds as "seed money" to help projects get off the ground; that we need to market the area regionally as a destination and not divide funds between the two cities (Spokane and Spokane Valley). John Brewer, President, Spokane Regional Convention and Visitor's Bureau: he encouraged council to listen to tax collectors as how best to use this resource for the greatest return on the investment; the CVB is a proven marketing arm of the entire region; its mission is to market for tourists, film activity, leisure activity, international travel, group tour and conventions, and to put the funds into use and show a clear return on the investment; he feels they are the best organization to help bridge that transition from the City of Spokane; with limited resources he encouraged Council to keep with an entity that shows results; he's hopeful that the CVB will receive a proportionate amount of funding from the Valley that they received from the City of Spokane, which was over 70% of available funds, and over 75% of available funds from the County. Clark Hager, 11717 East Lenora Drive: said it is a great testimony that we have created this City and that now we have the legal responsibility of determining where our tourism dollars will be spent. Richard Beam, 3626 S. Ridgeview, the Spokane Valley Business Association: said he gets concerned when someone says "1 know how better to spend your money than you do." Said lots of regional activities deserve our support; that one of the main reasons we incorporated was so we can determine how to spend our own money, and we know better what it is in the best interests of Spokane Valley and how that money should be spent; suggests council seriously consider the recommendations of the committee and these discussions belong before that committee and not before the Council. Ray Perry: withdrew option to speak at this point. Cal Clausen, owner of Holiday Inn Express, Quality Inn on the Argonne/Mission corridor, and the Holiday Inn Express downtown: said that he has been in the lodging business for about 25 years, that there is a disproportionate amount of funding going to the CVB and that should be taken into consideration. From a Council !Minutes 08 -26 -03 Page 2 of 7 . Date Approved by Council: DRAFT business standpoint, he said if he were the CVB and if he were spending an inordinate amount of time where he's getting less money, he would concentrate his efforts where most. of the money is coming from and do a better job there; that legal issues have been brought up and there are two members of the board who voted on their own proposal and wonders if that is legal or merely a conflict of interest. He feels the CVB is a very positive entity and it would be a mistake to deter that relationship. Rob Higgins, Councilnrember from City of Spokane, East 1024 Mission: said he is here as a member of the Regional Convention Visitor's Board; he served as Chair of the finance committee for the City of Spokane back in the 1980s, and they dealt with this issue and adopted a policy to deal with the limited resources, and that policy now generates about 70% of their S900,000 lodging tax money and allows the "best bang for the buck." Tony Lazanis, Vice President of the Hotel /Motel Association: said council must use funds to benefit the Valley businesses and the Valley; that there are 47 conventions in Spokane and only two of them come to the Valley; that the Valley does not have a facility to support such conventions, and this money can be used to expand the facility in order to have large gatherings to benefit the Valley. Mayor DeVleming invited other public comment. None being offered, Mayor DeVleming asked for council consensus to allow tirne at the next study session for a more formal presentation from the Committee, and to allow time for comment from the Hotel /Motel Association. Council concurred. MAYOR'S REPORT: Mayor DeVleming reported that we are taking some initial steps similar to the Comp Plan issue, and getting together September 24 with the U- Cities Property Owners Group to discuss some ideas and possibilities that might take place in the U -City area. PUBLIC COMMENT: Mayor DeVleming asked for public comment on matters not on the agenda. Ed Mertens, 1310N Pierce, Spokane Valley: voiced his concern about the figures being presented in relation to Mirabeau and that the S400,000 which the newspaper reported which was not in the preliminary budget. Mayor DeVleming asked Mr. Mertens if he would save his comments for when that topic is addressed. PUBLIC HEARING: Extension of Moratorium. Mayor DeVleming announced that this proposed ordinance would extend the moratorium on filing and acceptance of applications for development permits or land use approval associated with adult entertainment and adult retail establishments. Mayor DeVleming opened the public hearing at 6:50 p.m. and asked for staff presentation of the proposal. Deputy City Attorney Driskell explained that the proposed ordinance would extend the current moratorium for an additional six months in order to give the City opportunities to examine zoning regulations regarding adult retail use establishments; that staff has been working on this issue and will continue doing so; that pursuant to RCW 35A.63.220 staff has developed a work plan which is attached to the ordinance. Driskell explained that this would extend the amortization schedule for one year; that there are zoning issues related to amortization such as if the citing of these existing facilities will affect whether they stay where they are and if it will affect new facilities coming in; and that there are a number of constitutional legal implications that staff needs to explore and research to he able to present a full range of options and the accompanying impacts. Mayor DeVleming invited public comment. Annette Remchwd, 1705 N Mullan Lane: said she appreciates council taking the time to study this issue and appreciates the moratorium, and hopes that any further development will be stopped. Countil Minut:s 05 -26 -03 Page 3 of 7 Date Approved by Council: DRAFT Mayor DeVleming invited other public comment; none being offered, Mayor DeVleming closed the public hearing at 6:57 p.m. ADDI'T`IONAL PUBLIC COMMENT: . Dorothy Stiles: distributed pictures of the area in question; said there was an incident recently where a child was riding his bicycle on the right side of the road, a truck came around the corner and missed the child by approximately five feet; she said a barrier had been promised because their fence had been knocked down several times; said the truck traffic is getting worse; and there are several businesses in the residential area including a carwash and storage units. Ms. Stiles suggested having a dead -end street between Sargent and Montgomery. Staff will continue to monitor and follow up on this issue. 1. CONSENT AGENDA: After City Clerk Bainbridge read the Consent Agenda, it was moved by Mayor DeVleming and seconded by Councilmember Munson to approve the Consent Agenda. Vote by Acclamation: In favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. OLI) BUSINESS: None NEW BUSINESS: 2. Ordinance No. 03 -076, Extending Moratorium on Development Permits or Land Use Approvals Associated with Adult Entertainment and Adult Retail Establishments: It was moved by Councilmember Munson and seconded by Councilmember Denenny to advance the ordinance to a second reading on September 9, 2003. Deputy City Attorney Driskell mentioned two changes in the ordinance: the title will be changed from establishing a moratorium to extending the moratorium; and Section 7 will change as follows: "that Council declares that a public urgency and emergency exists such that this ordinance must be immediately effective in order to preserve and protect the public health, public safety, public property, and public peace" provided this ordinance is adopted by a majority vote, plus one of the whole membership of the city council. Attorney Driskell said the moratorium will expire March 2, 2004, and the amortization schedule will expire September 7, 2005 consistent with the remainder of the ordinance. It was moved by Councilmember Denenny and seconded by Councilmember Taylor to amend the motion to suspend the rules, move this to a second reading, and adopt ordinance 03 -076 with the incorporated changes proposed by Attorney Driskell. Vote to amend the motion by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Vote on the newly amended motion adopting Ordinance 03 -076: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 3. Ordinance No. 03 -077. EMAN Franchise Ordinance: City Clerk Bainbridge read the ordinance by title. It was moved by Mayor DeVleming and seconded by Councilmember Taylor to suspend the rules, move this to a second reading, and approve Ordinance 03 -077. Attorney Driskell said that EMAN representatives did not formally accept the original franchise within the required time period, and that this is the second edition; that in the meantime, Council adopted the Columbia Franchise which contained different language. In the interest of uniformity in franchises, the language and terms of this franchise now reflect those contained in the Columbia Franchise. Councilmember Munson said there was no construction required of the Columbia Franchise, which is not the case with EMAN, and the situations are different. Vote by Acclamation: Mayor DeVleming, Councilmembers Schimmels, Denenny, Flanigan, and Taylor. Opposed: Councilmember Munson. Abstentions: None. Motion carried. 4. Ordinance No. 03 -075, Zoning Code Compliance: City Clerk Bainbridge read the ordinance by title. It was moved by Mayor DeVleming and seconded by Councilmember Munson to give the ordinance the first reading, and advance it to second reading on or about September 9, 2003. Attorney Driskell said this is the zoning code compliance chapter proposed by staff to replace the existing interim zoning code compliance section; that the existing chapter (adopted by Spokane County) had some abatement provisions which were in need of modification; that staff wanted to more effectively give meaning to the zoning code and that a change in the compliance section was necessary; the change previously requested by Council is located in Chapter 14.406.035 (page 6 of the draft), new subsection c: "The director is authorized to determine, based Council Minutes 08 -26 -03 Page 4 of 7 Date Approved by Council: DRAFT upon past complaints regarding a property, subsequent field investigation and other relevant: criteria, whether a compliant: is reliable. If the director determines a compliant is not reliable, the director is not obligated to conduct a field investigation." This was added to address the issue of invalid complaints and subsequent unnecessary field investigations. Mayor DeVleming asked for public comment. Robert Lowe, 1111 S. Timberlane Drive in the Valley: said that Code Enforcement left him a problem in dealing with his business and operation location; that he moved his business to its current location because it was his understanding that there would be no problems provided his business is drop off and pick up and not retailing; that he has been told he now needs a use permit at the cost of $61.00 and must pay $500.00 for another permit with no guarantee the permit application will be granted; that he feels he has a right to travel that street and is doing everything possible to comply. Mayor DeVleming asked City Manager Mercier to give staff this information so that staff can prepare a brief to present to council at the next regular council meeting, and to deliver a copy of that briefing to Mr. Lowe. Vote by acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried 5. Ordinance No. 03 0?0 Budge inee— Removed from the agenda. 6. Ordinance No. 03 -080 Authorizing lnterlocal Agreement. with Public Facilities District. — First Reading. City Clerk Bainbridge read the ordinance by title. ft was moved by Councilnremher Denenny and seconded by Corurcil;nember Munson to advance Ordinance 03 -080 to a second reading on or about September 9, 2003. Bonds Attorney Mike Ormsby gave a brief overview explaining that there was a suggested modification given by Councilmember Munson approximately one month ago, and another modification was made relative to the amount of bonds that would be issued; the ordinance makes certain findings regarding the nature of the Mirabeau Point Project in order to qualify for receipt of regional project tax revenues; and the ordinance also approves the interlocal agreement between the City of Spokane Valley, Spokane County, and the Public Facilities District. Attorney Ormsby said we did everything we could to ensure the control of the construction, financing, operation and ownership of the project, that we will break ground by the beginning of next year, and that certain activities will be held in this facility that will qualify it as a regional project Attorney Ormsby said we want this agreement until our bonds are paid in full, that the PFD has agreed to levy the tax it can for as long as it needs to make the County and the City of Spokane Valley whole; that the City of Spokane Valley is the primary beneficiary of the financial aspect of this agreement; and that the City of Spokane Valley wants to be able to enforce against the. PFD their financial obligation to reimbursement us and we want to do so until the bonds arc paid in full. Councilmember Munson asked if we should decide later to give the maintenance and operation obligations for this facility to another entity (while continuing to pay our obligations), would eve need an approval from the County and the PFD to do so? Attorney Ormsby said he will research that question and respond in writing to council with his findings. Councilmember Schimmels referred to the last PFD minutes and an article in the newspaper that the PFD sold their $77 million worth of bonds and netted $80.5 million; Ormsby said he will provide those particulars in his written response. Mayor DeVleming asked for public comment. Ed Mertens, 1310 N Pierce Rood, Spokane Valley: said he has concerns about spending the funds without having a good blueprint. to show where it's going, why and when; feels we owe it to the people before going ahead with the plan. Councilmember Munson responded that we have gone through a blueprint on numerous occasions and those concerns have already been answered. Clark Hager, 11717 Fast Lenora Drive: said the bond meetings were done in secret in apparent violation of open meeting's act and that citizens had no right to comment as those things were being created; said council should get an unqualified official opinion of the bond counsel that the Facilities District does not have to have ownership in Mirabeau Point; and /or to get that opinion from the bond attorney of the Facilities District. Phillip Rudy, 10702 East Fruithill Road: asked if there is a dissolution clause to protect the City should it desire to no longer be a part of the agreement. Council Minutes 08-26-03 Paee 5 of 7 Date Approvcd by Council: DRAFT• Kep Fournier, 11814 East Maxwell: said he appreciates the comments of the previous citizens; but does not appreciate comments which relate to the City of Spokane; that the City of Spokane Valley is separate and he appreciates the work of the Council. Tony 1_.azanis, 106261. Trent: said that Council does not have a blueprint alluded to in previous comments; wants to know who will control the senior center and has concerns of what we will get for the money spent; that he hopes Council will make changes to get more for its money; and wants to make sure we qualify for the diversion funds. Ray Perry, 2020 N Ely Road: said he feels Clark Hager is looking out for the community's interest and he would like to see us fulfill the legal responsibilities that are needed to certify that the bonds will be valid and enforceable. In response to the issues raised, Attorney Ormsby said his firm will give an unqualified legal opinion on the validity and enforceability of the bonds and they will give that opinion or the bonds won't get issued; there will be an opinion relative to the enforceability of the agreement; and on the issue of the ownership requirement, Ormsby said they worked with the State Auditor's Office and Department of Revenue on a number of these types of projects, and the intent of the policy is to try to encourage as many joint projects as possible; there are a number of projects where the county issues the bonds and the PFD owns and operates the facility, or the City does; and that he is satisfied with the intcrlocal agreement being proposed and is being approved by the other two entities and their council, in that it meets the requirement that entitles the City of Spokane Valley to be eligible for funds from the PFD; and that bond council to the PFD has agreed to comply with and live up to the agreement; and he and the bond counsel community are satisfied that an ownership requirement is not there but there is an involvement requirement and this agreement satisfies those provisions. Councilmember Denenny said there have been approximately four presentations regarding the specifics of the project and at least one meeting describing a line -by -line detailed accounting of the funds; with at least another meeting readjusting those figures; and that the PowerPoint presentations are available for public viewing and were part of the council's agenda. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Mayor LDeVlerning called for a short recess at 8:36 p.m., and reconvened the meeting at 8:45 p.m. 7. Presentation of Lease Proposal from "Splash Down :" Parks & Recreation Director Jackson said tonight's presentation is informational and pointed out comparisons of the two leases, along with pros and cons contained in the council backup material; he mentioned his example was based on the 2002 season, and with the expected improvements a threshold will be broken of 5300,000; and when that occurs, if the concessions are reduced as requested, it will have more significant impact on the amount of funds corning to the City than what is indicated. Director Jackson said-the main issues include a 20 -year lease to match the term of their prospective bank loan, that they are asking for additional land to construct additional improvements (the location of the present basketball and tennis courts), and to consider the changes in the financial arrangements which can be explained in more detail later. Jackson said it would also be good to know our long -range plans for aquatic facilities in this community and the value of that existing park; and that Debbie Weisen said their proposal could be accomplished in phases. Debbie Weisen gave a brief history of the facility and the dream they have that they want this to be "the place" where everyone goes in the Valley; that this year they had over 400 season pass holders. She added that they want to expand the facility to include: a two -man slide, a place to swim, added seating, a lazy river, and expansion of the park with emphasis on family park. She said to do this they propose taking over the basketball and tennis courts, which are not used to a large extent. As they would like to keep the concession Council Minutes 08 -26 -03 Page 6 of 7 Date Approval by Council: DRAFT prices low; they propose paying 10% for all gross receipts instead of keeping different percentages for different functions such as entrance and concessions. It was ,moved by Mayor DeVlemirrg and seconded by Councilnrember Taylor to extend the meeting another 30 minutes. Vote by acclamation: Unanimous in support. Discussion continued about removal and potential costs of the tennis and basketball courts, actual use of the courts, and different options other than a 20 -year lease. It was council consensus that this is a good opportunity, that 20 -years seems reasonable, that a study should be conducted on the funds needed regarding the courts issue, gain sharing, cost recovery, and the risks associated with all of the above. I1 was proved by Mayor DeVlcnring and seconded by Councilmen:6er Munson to instruct the City Manager to proceed with negotiations on this lease. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None Motion carried 7a. .Added Item: Council Delegation to Conduct Dangerous Dog Hearing. Attorney Driskell explained that Ordinance 56 adopted Spokane County's animal control ordinances by reference, and also provides that this City Council may delegate hearing authority, regardless of whether any quasi-judicial or other matter is then pending, for the purpose of delegating the appeal or other matter for hearing and disposition. It was moved by Councilmember Schinumels and seconded to delegate the City Council's authority to Spokane County Board of Commissioners to conduct that dangerous dog hearing in this instance, regarding the Betty Seynrnr owner and Susan Van GYyk. Mier hearing a brief report from Attorney Driskell regarding this case, Mayor De \tleming asked for the vote. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried Cite Manager Mercier said that agenda items 8 through 11 are provided for review and digestion and that staff can provide further comment at a later date if council desires. I la. Added Item: Review of Parks Agreement Negotiations: City Manager Mercier said the last time they discussed this was whether construction management and oversight. should be new terms; that he met with County staff and that section 2.5 was of concern, but that it. was determined the grant excludes construction. The proposal went to the County Commissioners today; they reduced service fees on a series of activities and found equal amount of monies to handle the oversight, and also provided a stop loss statement to make sure no expenses were added expenses to council and that this was to go on their following week's consent agenda; also that City Manager Mercier made it clear this was our last and best offer. There being no further business, it was moved, seconded and unanimously agreed upon to adjourn. The meeting adjourned at 9:35 p.m. ATTEST: Christine Bainbridge, City Clerk Michael DeVleming, Mayor Council Minutes 08 -26-03 Page 7 of 7 Date Approved by Council; Attendance: Councilmembcrs: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Richard Munson, Councilmember Gary Schimmels Councilmember Steve Taylor, Councilmember DRAFT MINUTES City of Spokane Valley City Council Study Session September 2, 2003, 6:00 p.m. Staff: David Mercier, City Manager Nina Regor, Deputy City Manager Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Marina Sukup, Community 'Development Director Mike Jackson, Parks R.Recreation Dir. Cal Walker, Police Chief Kevin Snyder, Current Planning Manager Neal Kersten, Public Works Director Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk Mayor DeVleming opened the meeting at 6:00 p.m., welcomed all in attendance, reminded everyone that this is a study session and there will be no public comments, and requested that all electronic devices he turned off for the duration of the meeting. I. Project Access Presentation: Dr. Selinger, Medical Director Spokane County Medical Society Project Access, described this physician-led community partnership charity care system, which provides access to the full continuum of medical care for the low income uninsured who are not eligible for other forms of health insurance. After his PowerPoint presentation, Dr. Selinger asked for the City's endorsement as this project begins in two days at. the Spokane Falls Family Clinic; and asked for a future annual commitment. of $1.25 per person. It was moved by Councilmember Denenny and seconded by Councilmember Munson to endorse the program and as a gesture of support, to allocate $5,000 toward the program this year as a show of good faith. Councilmember Flanigan mentioned that staff may need to make some adjustments to include this as part of future budgeting processes. Council concurred. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried 2. Presentation Hotel/Motel Tax Committee: Councilmember Flanigan explained that Council directed this Committee to approve a mix of marketing and activity proposals in their deliberations of allocation of funds. Councilor Flanigan said that questions were previously raised concerning some of the decisions of the committee regarding possible conflicts of interest. Flanigan said the majority of the committee felt there was no need for anyone to recusc themselves at any time and that the committee was very fair in their deliberations. Flanigan also mentioned there were questions about the ad for the visitor's guide. The committee unanimously agreed that it was good for the Spokane hotels but the ad did not come through the process in the same manner as the proposals. Flanigan said it: would be inappropriate to support an ad that was not regional, and reminded council the direction to the committee was for a mix of marketing and activities; the committee delegated 70% of the funds for marketing, and 30% for activities. Jeff Fox, General Manager of Mirabeau Park Hotel: said he is frustrated and not happy with the outcome; that he is a major contributor and the largest contributor to this fund and made his recommendations to council as outlined in his September 2, 2003 letter. Peggy Doerring: Thanked Council for allowing citizens to participate in the committee process; said this is an advisory committee to help the city government perform their duties; that she believes there was undue influence and intimidation; that they worked hard with clue diligence in reviewing the 29 Study Session Minutes 09 -02 -03 Page 1 of 4 Date Approved by Council: DRAFT applications; that they evaluated and researched the proposals given to them and some proposals did not meet the RCW guidelines and therefore did not make the final cut. Jeff Fox: concerning the community- focused events, said the community would benefit but the hotels would not; the event needs to start with a room night; that we need more community facilities but doesn't see any room nights coming out of the museum, the skate park and Valley Fest and that perhaps those functions should be funded from other sources; that the hotel business is not doing well this year and those three entities are the ones with which he had the most issue. Councilman Flanigan then explained the two different hotel /motel taxes: one is the regular tax and the other is a special tax; the regular tax is not an additional tax; but this special tax is actually a rebate on the State's return of sales tax revenue. The other tax is the additional 2% which is what the larger hotels pay, which is used for items such as retiring the debt on the arena. Jeff Fox then explained the procedure used in allocating the funds; e.g., writing the names of the entities on the white board and putting in the committee member's recommendation, yet keeping the agreed upon 10% reserve. City Manager Mercier reminded everyone that there are not enough receipts in yet to be able to forecast what the total revenue would be in the fund. In response to a question concerning tools used to govern the allocation process, Ms. Singleton said the most important tool was the RCW. Councilmember Flanigan also mentioned the evaluation form was used to rank the proposals. More discussion ensued regarding the submittal of the ad, costs associated with it, the lateness of the ad, and whether to consider it with the proposals. City Manager Mercier mentioned that in reference to the composition of the advisory committee and any possible conflict of interest, that the legal staff researched that issue and determined there is no conflict of interest in the committee composition; and that the statute requires committee membership to include members who are representatives of businesses required to collect tax, and members who are involved in activities authorized to be funded by the revenue received. Cal Clausen, Sterling Hospitality Management Company: distributed his August 31, 2003 memo to the Council and remarked on the main points of that memo; he said that the lodging business in Spokane County is not healthy; he stressed funding the CVi3 at least, if not more, to the point where they were in the past; that perhaps the membership of the committee is legal but it doesn't look good for someone on the committee to vote on their own proposal; that he is a donor and if the CVB were funded adequately he could make donations to Valley Fest and Heritage Museum. Clausen said soccer fields are easy to measure in that teams won't come if there are no facilities; that Valley Fest is a local community as is the museum and they likely won't generate revenue from outside sources. Clausen also encouraged Council to consider an easier process so that this process won't have to be repeated periodically concerning allocation of-these funds. Several comments, questions and answers were then directed to and from Mr. Brewer explaining the strategy of how CVB operates and how the Spokane Valley could be marketed. Further discussion followed concerning the Fair and Expo center, which saw increased profits this year; its budgeting and funding process and the facility in general. It was also mentioned by Mr. Brewer regarding the ad, that perhaps the reason Spokane Valley was not mentioned is that it was written before the City incorporated. Pat Estes, Valley Fest: said he is a volunteer for this function; that this event is one of only three events that take place in the Valley; they need marketing assistance as the Fest the potential to be a premier valley event; all staff members are volunteers and the $5600 would be used solely to market the event; without those funds they will not be able to market as they would like; they have a goal of having the Fest become a multiple -day event. Laura Lower, Museum Professional: worked at other museums in Washington and knows that people carne from all over; they hope to attract people from 190; many visitors to museums ask of places to stay; Study Session Minutes 09 -02 -03 Page 2 of 4 Date Approved by Council: DRAFT museums bring people from the national scene, which gains attraction and that gives people reason to write about the museum in travel and other magazines. Jayne Singleton, Coordinator of Spokane Valley Heritage Museum. Said this is the fastest growing segment of the tourism industry; they are a community asset and act as a gateway; she believes they do put heads in beds. Bob Sanders, Member of Valley YMCA Advisory Board and Skate Park Development Committee: said he believes the hotel group has given them a resounding endorsement; they speak of difficulty in bringing people into town and this skate project can do that; the park is a two -phase project with a three -acre skate; their activities will include national competitions of professional skateboarders. George Skidmore, Spokane Valley Junior Soccer Association: said he feels the committee arrived at a balance of marketing and activities; that Plantes ferry Park started with a donation and is now a three million dollar facility; they are already beginning to attract visitors to their tournaments; they have 13 soccer fields; next year will be a showcase for the Far West Tournament 2004 which will bring 20,000 people from the 13 western states who will stay about a week, and that could generate 100,000 overnight stays. He said that he is asking for funds to finish the multiple purpose building which will bring dollars from concession sales and will attract more tournaments. Members from Valley Fest said their festival is corning up September 20, and they urge council to make a decision quickly. Ms. Singleton said she has proposed a budget with diversified revenue stream; that they plan to hold an auction, will use corporate and private donations, plan a gift shop with photographs to sell; she added that federal grants are the biggest component of museums and they need these funds as a match for those grant funds. tt ■vas moved by Favor DeVleming and seconded by Deputy Mayor Wilhite to put the committee recomme►rdations on next Tuesday's council meeting agenda. In discussing the motion, Councilmember Taylor added that he would like to have Mr. Fox's letter as part of next council's packet. Rote on Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried Mayor DcVleming called a recess at 8:10 p.m., and reconvened the meeting at 8:25 p.m. 3. Proposed Junk vehicle Ordinance: Deputy City Attorney Driskell explained how the ordinance would regulate junk vehicles, that it was before Council May 27 and was tabled then with instruction to gain more citizen input and to ascertain what other communities are doing. Attorney Driskell said this issue was also set before the Planning Commission as a public hearing. Attorney Driskell then reviewed the definitions, exemptions, and remaining sections of the ordinance. It was Council consensus to place this item on the September 9 council agenda. 4. Comprehensive Plan, Shoreline and Critical Area Elements: Community Development Director Sukup went through her PowerPoint presentation and mentioned that the handout is somewhat different from what was contained in council's original packet. 5. Mira beau Project Update: Deputy Mayor Wilhite asked if the classroom portion was reduced to one story. It was mentioned that the second floor will only be "roughed in" and that negotiations are still ongoing with the community colleges. Deputy City Manager Regor said she is meeting with Mike Ormsby this Friday on this topic and will give another update next week. 6. Wastewater Issues: Public Works Director Kersten distributed his September 2, 2003 memorandum and discussed that memo's highlights concerning the direction for the technical committee. Director Kersten said that the Department of Ecology has not committed to another meeting date yet and that he Study Session Minutes 09 -02 -03 Page 3 of 4 Date Approved by Council: will keep Council appraised on that issue; he added that work is progressing on finalizing the STEP Agreement and that should be ready for the next study session. Director Kersten said the technical committee is scheduled fora follow -up meeting September 15, 2003. City Manager Mercier added that in regard to sending a letter to the City of Spokane, he does not feel a conclusion needs to be made rapidly; that all parties are aware of the need for interim capacity and the need to move along with the issues; and it appears all parties are willing to exercise patience; he agrees DOE still plays a large role and he is encouraged that constructive conversations are taking place and feels all involved are moving forward in the decision making process. City Manager Mercier said when he left the DOE meeting, there was a consensus to follow parallel tracks that there would be work attempted on the TMDL and other similar issues, and another track on governance issues which could play out over a longer timetable than the capacity issues; that staff is working on details of what components of an overall plan could be considered of regional value; they also want to make sure the low interest loan is not attached to a particular site. Director Kersten received a letter concerning the loan and said the deadline for making a decision about the loan is approximately August of next year. 11 was moved by Mayor DeVleming and seconded by Councilmember Munson to extend the meeting 15 more minutes. Vote by Acclamation: 1n Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 7. Advance Agenda Additions: In response to questions concerning the budget process, City Manager Mercier said he recommends working with the council as a whole rather than just the finance committee although he would be. happy to do any other work with the finance committee if council so chooses; that he will endeavor by the end of next week to have all departments register their initial requirements; that next week's agenda will include approval of budget goals after which, we will be in a better position to set dates for further budget refinement. In response to council question concerning identifying sales taxes, City Manager Mercier said the work of Microflex is not completed and Finance Director Thompson has been reviewing the latest returns. Microflex should be contacted again in another two to three weeks. 8. Council Check -in: City Manager Mercier reminded council that this is an opportunity for council to identify if the system or process or some interaction between council and staff or otherwise needs any adjustment. City Manager Mercier said variance reports should be ready for council review the end of September. 9. Citv Manager Comments: City Manager Mercier said he received an e-mail late this afternoon indicating the County Commissioners accepted the parks transfer and parks maintenance agreement as part of their consent agenda, and those items will be included on the next council agenda. There being no further business, it was moved, seconded and unanimously agreed upon to adjourn. The meeting adjourned at 9:16 p.m. Attest: Christine Bainbridge, City Clerk DRAFT Michael DcVleming, Mayor Study Session Minutes 09 -02 -03 Page 4 of 4 Date Approved, by Council: Meeting Date: September 9, 2003 City Manager Sign -off: Item: Check all that apply: X consent AGENDA ITEM TITLE : Adoption of 2004 Goals GOVERNING LEGISLATION: NIA CITY OF SPOKANE VALLEY Request for Council Action X old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation PREVIOUS COUNCIL ACTION TAKEN: On August 11, Council held a study session to discuss the 2004 budget process and goals. BACKGROUND: An August 15 staff memo summarized the discussion, and included two documents for Council review. Attached are updated versions with minor revisions: Attachment 1: Draft 2004 Guiding Principles, Goals and Department Workplan Activities — Subgoal '2.3 originally read, "Develop a plan for maintaining the transportation system including evaluation of a local funding source." That subgoal has been separated into two new ones to better reflect Council intent. Revised Subgoal 2.3 reads, "Develop a Transportation Master Plan." A new Subgoal 2.4 reads, "Develop a local funding plan to maintain the City's streets." Attachment 2: Draft 2004 Goals Table — In the Category column, the goal references were incorrect in the August 15 version, and have been renumbered. In a couple of cases, the lead department has been clarified. OPTIONS: Revise the draft goals, including adding or deleting goal(s). RECOMMENDED ACTION OR MOTION: Move to adopt the 2004 Goals. BUDGET /FINANCIAL IMPACTS: The guiding principles and goals provide the foundation upon which the 2004 budget will be based. STAFF CONTACT: Nina Regor, Deputy City Manager ATTACHMENTS 1. Updated Draft 2004 Guiding Principles Goals and Department Workplan Activities 2. Updated Draft 2004 Goals Table City of Spokane Valley Draft 2004 Guiding Principles, Goals and Department Workplan Activities Based on Council Study Session, August 11, 2003 Attachment 1 Note: Guiding Principles and Goals are numbered for ease of reference, and not intended to reflect relative priority. Guiding Principles 1. Maintain current service level, especially core services, to the greatest degree possible. 2. Live within current sources of revenue, i.e., no increase in taxes or tax rates, if possible. 3. Maintain a business friendly environment. Goal 1: Experiment with a Managed Competition Program designed to identify alternative service providers at more economical rates than accorded by current service providers. Goal 1 Subgoals: 1.1 Develop a long -term approach for library services for City of Spokane Valley residents. 1.2 Develop a long -term approach for fire services for City of Spokane Valley residents. 1.3 Assess cost effectiveness of Court - related contracts. Draft 2004 Guiding Principles, Goals and Department Workplan Activities, continued September 9, 2003 Page 2 of 4 Coal 2: initiate the Development of Spokane Valley's First Comprehensive. Plan which will create the City's long -term vision and link transportation system improvements to land use goals in support of that vision. Goal 2 Subgoals: 2.1 Develop a Parks and Recreation Master Plan. 2.2 Establish development regulations implementing the Comprehensive Plan in a Uniform Land Development Code, to include subdivision requirements, zoning regulations, development standards, building codes and engineering details. 2.3 Develop a Transportation Master Plan. 2.4 Develop a local funding plan to maintain the City's streets. 2.5 Develop a strategic annexation program. Goal 2 Department Workplan Activities: • Complete the initial draft on the Comp Plan, including the land use, transportation, parks and recreation, and capital facilities elements. (Lead — Community Development) • Develop and implement a public participation program. Potential techniques include electronic newsletter; informational brochures; and citizen surveys, as well as meetings with citizen groups, neighborhoods, and other special interest groups. (Lead — Community Development) • Integrate the State Environmental Policy Act (SEPA) into the Comp Plan. (Lead — Community Development) Goal 3: Continuously Improve Overall Communication between government and its citizens, between staff and Council, among staff and among Council members. Goal 3 Department Workplan Activities: • Initiate development of an interactive web -based GIS. (Lead — Community Development and Public Works) • Publish all Planning Commission agendae, Comprehensive Plan and development regulation drafts on the web. (Lead — Community Development) • Initiate records storage and retrieval system. (Lead — City Clerk) • Publish Facts & .Figures — City of Spokane 'Valley to include demographics, permit activity, City contact information, etc. (Lead — Administration ?) • Further develop the City's web site to enhance citizen participation. (Lead — Administration) Draft 2004 Guiding Principles, Goals and Department Workplan Activities, continued Septem ber.9, 2003 Page 3 of 4 Goal 4: Develop a Five -Year Strategic Financial Plan that forecasts revenues and expenses as well as identifies funding and . financial challenges and options. Goal 5: Develop and Strengthen External Relations to advance the interests of Spokane Valley through interaction and advocacy with neighboring jurisdictions, the state legislature, funding boards and commissions, the congressional delegation and statewide and national municipal organizations. Goal 5 Subgoals: 5.1 Maximize coordination among agencies. Goal 6: Develop an Approach for Long -Term Wastewater Services including the evaluation of a regional system option. Goal 6 Subgoals: 6.1 Develop a funding plan for extended road surfacing as part of sewer improvement proj ects. Draft 2004 Guiding Principles, Goals and Department Workplan Activities, continued September 9, 2003 Page 4 of 4 Other Department Workplan Activities Community Development • Streamline permit issuance and inspection processes with a goal for same -day inspections and predictable (48-96 hour) turnaround on plan review. • Cross -train and certify code compliance and building inspections personnel. • Develop informational brochures, including Everything You Wanted to Know about Getting a Building Permit and Development 101 in Spokane Valley. • Streamline development review processes. (Note: this activity includes other City departments and other agencies.) • Enhance citizen self -help area. (Note: this activity includes other City departments, especially Public Works.) Deputy City Manager • Develop and evaluate options for a City Hall. (Note: this activity includes other City departments, especially Public Works.) Parks d Recreation • Manage the construction phase of the Mirabeau Point CenterPlace project to ensure the facility meets the timeline for occupancy in 2005. (Note: this activity includes other City departments, especially Public Works.) Public Works • Manage contracts with Spokane County and others for public works services and construction. • Provide engineering services to support City projects and the City's planning and building activity. • Seek grant support for City public works projects. Potential Future Goals • Address the City's role in social service, economic development and arts & cultural issues in the community. GOALS CATEGORY LEAD Possible Goals from Staff: 1. Manage the Construction Phase of the Dept. workplan Parks /PW Mirabeau Point CenterPlace Project so that the facility meets the timeline for occupancy in 2005. 2. Experiment with a Managed Competition Goal CM/DCM Program designed to identify alternative service providers at more economical rates than accorded by current service providers. 3. Initiate the Development of the First Goal CD Comprehensive Plan for Spokane Valley that will create the City's long -term vision and link transportation system improvements to land use goals that support achieving the adopted vision. 4. Overall Communication. Goal Citywide 5. Develop a Five -Year Strategic Financial Plan Goal Finance that forecasts revenues and expenses as well as identifies funding and financial challenges and options. 6. Develop and Strengthen External Relations that Goal ' Council /CM advance the interests of Spokane Valley through interaction and advocacy with neighboring jurisdictions, the state legislature, funding boards and commissions, the congressional delegation and statewide and national municipal organizations. 7. Determine if we are Going to Contract or Subgoal to #1 DCM Annex Library District, or start our own. 8. Determine if we are going to contract or annex Subgoal to #1 DCM Fire District, or start our own. 9. Assess Cost Effectiveness of Court- Related Subgoal to #1 CA Contracts and determine if we should provide these services ourselves. 10. Manage Contracts with Spokane County and Dept. workplan PW Others for public works services and construction. 11. Provide Engineering Services to support City Dept. workplan PW Projects and the City's planning and building activity. 12. Seek Grant Support for City public works Dept. workplan PW projects. City of Spokane Valley Draft 2004 Goals Table Based on Council Study Session August 11 2003 Attachment 2 13. Develop a Parks and Recreation Master Plan. Subgoal to #2 Parks 14. Initiate Development of an Interactive Web - Dept. workplan for #3 _ CD /PW Based GIS. 15. Publish all Planning Commission Agendas. Dept. workplan for #3 Dept. workplan for #3 CD City Clerk Comprehensive Plan and Development Regulation Drams on the web. 16. Initiate Records Storage and Retrieval System. 17. Publish "Facts & Figures - City of Spokane Dept. workplan for #3 Administration Valley" to include demographics, permit activity, the names and addresses of elected City, county, and state officials, etc. 18. Streamline Permit Issuance and Inspection Dept. workplan CD Processes with a goal of same day inspections and predictable (48 -96 hour) turnaround on plan review. 19. Cross - training and Certification of Code Dept. workplan CD Compliance and Building inspections Personnel. 20. Informational Brochure - "Everything you Dept. workplan CD wanted to know about getting a Building Permit ". 21. In cooperation with. other departments and agencies. Establish Development Regulations Subgoal to #2 CD Implementing the Comprehensive Plan in a Uniform Land Development Code, to include subdivision requirements, zoning regulations, development standards, building codes and engineering details. 22. Streamline Development Review Processes to Dept. workplan CD include all reviewing departments and agencies. 23 . Informational Brochure — "Development 101 in Dept. workplan CI) Spokane Valley ". 24. Enhance. Citizen Sell -Help Area. Dept. workplan CD/PW 25. Develop and Implement a Public Participation Dept. workplan for n2 CD Program for the Comprehensive Plan. Public participation techniques include electronic newsletter, public information brochures, citizen surveys, informational meetings with citizen groups, neighborhoods, and other special interest groups. 26. Complete Initial Draft on the Citv's Dept. workplan for #2 CD Comprehensive Plan, specifically the land use, transportation, parks and recreation, and capital facilities elements. Consultant assistance may be required for the transportation, parks and recreation, and capital facilities elements. Draft 2004 Coals Table, continued September 9, 2003 Page 2 of 3 GOALS I CATEGORY 1 LEAD 27. State Environmental Policy Act (SEPA) Dept. workplan for #2 CD Integration into the comprehensive planning process. Consultant assistance anticipated to comply with the SEPA requirements of the comprehensive plan. Council Suggestions: 28. Minimum — Maintain Current Service Level. Guiding Principle (combine with #30 29. Address: Future • Social Services • Economic Development • Arts & Culture 30. Don't Reduce Core Scrvicc — treat as living Guiding Principle (combine with #28) document (i.e , make changes). 31. Wastewater Treatment: Goal • Subgoal PW • Roads funding 32. No Increase in Taxes (or tax rates) impossible. Guiding Principle (Live within current sources of revenue.) 33. Plan for Maintaining Transportation System: Separate Subgoals to #2 PW • Local funding source? 34. Maintain Business- Fricndl Environment Guiding Principle 35. Maximize Coordination Among,Agcncies Subgoal to #5 Dept. workplan DCM/PW 36. Options for City Hall (alternatives). 37. Develo a Stratel Annexation Program Subgoal to #2 CD Added Post August 11, 2003: 38. Further Develop the City's Web Site to enhance Dept. workplan for 143 Administration citizen participation Draft 2004 Coals Table, continued September 9, 2003 Page 3 of 3 GOALS CATEGORY [ LEAD CA = City Attorney; CM = City Manager; CD = Community Development DCM = Deputy City Manager; PW = Public Works OPTIONS: ATTACHMENTS Vouchers for 08 -22 -03 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 09 -09 -03 City Manager Sign -off: Item: Check all that apply: x consent ❑ old business ❑ new business D public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Claims: Voucher listing total for the weeks of August 22, 2003 and August 29 2003 batch List of Vouchers for 8- 29 -03: Damage deposit refund 50.00 Reimbursement, relocation 1,728.93 Federal population certificate 1,530.00 Office supplies 185.31 Office supplies 280.24 Geiger Jail Costs for June 5,070.00 Reimbursement for relocation 3,500.00 Expense reimbursement 14.86 Power charges 71.02 Membership dues balance 826.00 Engineering services 390.00 Employee name plates 191.99 Building rent for September 20,496.93 Contract services 2,625.00 Printing 473.90 City logo for parks van 75.67 Vinyl decals for police cars 1,913.37 Day camp craft supplies 53.49 Parks & Rec field trip 292.40 Municipal Membership Dues 21,250.00 Mileage & Travel Expenses 24.49 Street lighting power charges 469.89 Bicycles & Accessories 1,718.62 Spokane County Treasurer 1,243,733.48 TOTAL 1,306,965.59 RECOMMENDED ACTION OR MOTION: Approve claims of $42,011.37 for 8 -22 -03 Approve claims of $1,306,965.59 for 8 -29 -03 BUDGET /FINANCIAL IMPACTS: $1,348,976.96 STAFF CONTACT: Ellen Avey vchlist • 08122 9:36:19AM Bank code : apbank Voucher Date Vendor 3350 8/22/2003 000154 3351 8122/2003 000264 3352 8/22/2003 000037 3353 8/22/2003 000134 3354 8122/2003 000030 AASHTO ALLEY, DEBI AMERICAN LINEN AVISTA UTILITIES 3355 8/2212003 000168 B & C TELEPHONE INC. 3356 8/2212003 000032 BERRETH LOCHMILLER & ASSOC 3357 8122/2003 000173 BINGAMAN, GREG 3358 8/22/2003 000101 CDWG 3359 8/22/2003 000109 COFFEE SYSTEMS INC 3360 8/2212003 000227 CONKLIN, PEGGY 3361 8122/2003 000035 CORPORATE EXPRESS Voucher List Spokane Valley Invoice PO # 400691850101 30051 081503 225896 APA CONFERENCE, EVENT DYNAMICS I req -SK 731634175 74738 3655 1007 JE82022 30054 15634 8152003 45330833 30055 30055 DescriptionlAccount BOOK REIMBURSEMENT FLOOR MAT SERVICE REGISTRATION ELECTRIC SERVICE AGREEMEN Total : TELEPHONE HEADSET ACCOUNTING SERVICES IT TECH SERVICES HP A -B IEEE 1284 PRINTER CAB Total : COFFEE EXPENSE REIMBURSEMENT Total : OFFICE SUPPLIES Total : Total : Total : Total : Total : Total : Total : Total : Total : Page: 1 34.98 34.98 45.18 45.18 600.00 600.00 1,956.52 1,956.52 128.42 128.42 120.00 120.00 405.00 405.00 505.19 505.19 724.64 124.64 18.27 18.27 11.02 11.02 Page: 1 vchlist 0812212003 9:36:19AM Bank code : apbank 3371 Date Vendor Voucher _ 3362 8122/2003 000014 EDEN SYSTEMS, INC. 3363 8/22/2003 000260 EWFOA 3364 8/2212003 000028 FARMERS & MERCHANTS BANK 3365 8/22/2003 000208 GIBSON, JAMES 3366 8/2212003 000002 H & H BUSINESS SYSTEMS 3367 812212003 000250 HARLEY DOUGLAS, INC 3368 8122/2003 000259 HUMANIX 3369 8/2212003 000070 INLAND POWER AND LIGHT CO 3370 8/22/2003 000265 JACKSON, MIKE 8/22/2003 000266 JAMES, GAY 3372 812212003 000114 JVH TECHNICAL List Spc ,_ Valley PO # Description/Account Invoice 17450 SOFTWARE_ SUPPORT 17576 TRAINING COSTS 17577 PROJECT MGMT1CONSULTING al 81503 CC1217 -8/03 CC1225 -810 CC -5045 8 -03 CC -5151 8 -03 81803 111416 02 -JNA -asst 132158 80703 81803 127 6480 30052 REGISTRATION Total : TRAVEL & RELATED EXPENSES CITY COUNCIL MEETING EXPEN CREDIT CARD PAYMENT CREDIT CARD PAYMENT Total REIMBURSEMENT COPY CHARGES TEMP LABOR STREET LIGHTING REIMBURSEMENT PLOTTER INK Total : Total : FLOODPLAIN BOND RELEASE Total : Total : EXPENSE REIMBURSEMENTotal Total : Total : Amount 11,655.00 4,641.23 1,537.50 17,833.7 40.00 40.00 1,379.9 901.59 138.80 612.48 3,032.79 130.38 130.38 1,764.43 1,764.43 2,000.00 2,000.00 84.60 84.60 30.00 30.00 13.50 13.50 7.47 7.47 1,098.8 1,098.88 Page: vchlist 08/2212003 9:36:19AM Bank code : Voucher 3373 apbank Date Vendor 812212003 000263 LANZCE DOUGLAS, INC. 3374 812212003 000262 LENHART CONSTRUCTION 3375 812212003 000033 MCPC 3376 8/22/2003 000198 MONTGOMERY, KRISTIN 3377 8/22/2003 000043 NEXTEL COMMUNICATIONS 3378 8122/2003 000016 PETROCARD SYSTEMS 3379 8/22/2003 000045 PHONES PLUS 3380 8122/2003 000041 PROTHMAN COMPANY 3381 812212003 000019 PURRFECT LOGOS, INC. 3382 8/22/2003 000024 RESOURCE COMPUTING INC. 3383 8/22/2003 000267 SAMARITAN OCCUPATIONAL MED. 3384 812212003 000067 SIGNS NOW 3385 812212003 000199 TALBOT, CHRISTINE Voucher List Spokane Valley Invoice Various 03- JNA - 28 4418747 30056 82003 432169121 C366043 Asst 2003 - 191119 9072 36013 777771161 11601096 81303 PO # Description /Account FLOODPLAIN BOND RELEASE al . BOND RELEASE PAYMENT OFFICE SUPPLIES, EXPENSE REIMBURSEMENT Total CELL PHONE SERVICE VEHICLE FUEL LABOR & EQUIP MAGNETIC SIGN NETWORK LABOR EMPLOYMENT PHYSICAL Total : Total : COROPLAST WIRE STAND Total : Total : Total : EXPENSE REIMBURSEMENT tai Total : Total : Total : Total : EXPENSE REIMBURSEMENT tai Amount 2,500 00 2,500.00 300.00 300.00 38.06 38.06 35.76 35.76 671.26 671.26 302.88 302.88 1,068.48 1,068.48 271.31 271.31 43.24 43.24 4,581.20 4,581.20 120.00 120.00 24.65 24.65 7.54 7.54 vchlist . 0812212003 9:36:19AM Bank code : apbank 3387 3388 3389 3390 3391 3392 8/2212003 000228 TYPECRAFT INCORPORATED 812212003 000087 8/22/2003 000097 812212003 000237 43 Vouchers for bank code : apbank 43 Vouchers in this report VERIZON WIRELESS, BELLEVUE WARREN, DICK WEIDERT, HOLLY I, the undersigned, do certify under penalty of perjury, that the materials have been furnished. the services rendered, or the labor performed as described herein and that the claim is lust, due and an unpaid obligation against the City of Spokane Valley, and that 1 am authorized to authenticate and certify to said claim. Finance Director Date Vc� List Spc -a Valley Invoice Voucher Date Vendor 3386 8/22/2003 000093 THE SPOKESMAN - REVIEW 73103 8/22/2003 000261 THRIFTY CAR RENTAL Thrifty 812212003 000102 TRANSNATION TITLE INSURANCE CO 262292 00045353 1793237554 81303 815003 PO # DescrIption /Account CLASSIFIED ADVERTISEMENT Total : CAR RENTAL TITLE SEARCH WORK TYPESETTING CHARGE CELL PHONE CHARGES Total : Total : Total : Total : CONSULTING & TRIP EXPENSE Total : MILEAGE Total : Bank total : Total vouchers : Amount 398.99 398.99 213.96 213.96 172.96 172.96 6.49 6.49 9.25 9.25 963.03 963.03 9.31 9.31 42,011.37 42,011.37 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 09 -09 -03 City Manager Sign -off: Item: Check all that apply: x consent ❑ old business El new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Payroll for Period Ending August 31, 2003 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET /FINANCIAL IMPACTS: Payroll for period ending 8/31/03 $ 97,718.10 salaries & wages $ 10,296.91 benefits $- 108,015.01 total payroll STAFF CONTACT: Daniel Cenis ATTACHMENTS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 9, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business xx new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Ordinance Authorizing Interlocal Agreement with Public Facilities District GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: First Reading August 26, 2003 BACKGROUND: Excerpted minutes from the Council's June 24, 2003 council meeting: Bond Attorney Mike Ormsby explained the agreement and summarized the PFD's position at that time. Ormsby said then that he feels the direction council has given is that the Valley City would like to have a proportionate share of the excess revenues of this project and that we are willing to talk with the PFD about how to define those excess revenues. Ormsby said he will be in contact with County's counsel tomorrow to discuss this and then in contact with PFD's counsel the following day for discussion. Ormsby concluded by stating that in terms of the current interlocal agreement, the goal is to insure it contains the representations needed for the City to qualify for regional project tax revenue. It was mentioned that the agreement does not provide for any lien or other ownership interest in the PFD which was a very fundamental part of council instructions at the onset. Ormsby said he will begin work on the allocation of excess revenues and will report back to the Council. OPTIONS: RECOMMENDED ACTION OR MOTION: Motion to adopt Ordinance No. 03 -080 BUDGET /FINANCIAL IMPACTS: STAFF OR OTHER CONTACT: Mike Ormsby ATTACHMENTS Preston I Gates I EI I is VIA E -MAIL AND IIAND DELIVERY Mayor Mike DeVleming . Members, City Council . - City of Spokane Valley . 11707 E. Sprague Avenue, Suite 106 • • Spokane, WA 99206 Re: Response to Inquiries Raised at the City Council Meeting of August 26, 2003 Dear Mayor DeVlerning and Councilmembers: September 2, 2003 At the first reading of the ordinance making certain findings regarding the regional nature of the Center Place Project and approving the Interlocal Agreement between the City 'of Spokane Valley (the "City"), the Public Facilities District of Spokane County (the "PFD ") and Spokane County (the "County "), a number of questions and issues were raised by members the Council and public. The purpose of this letter is to respond to the questions and issues raised. I am sure you also appreciate that the nature.of some of the questions or issues raised are more fiscal or. policy issues, as opposed to legal concerns. • (1) Need for Approval on Transfer of Operational Control Responsibility by the City. Councilor Munson, in light of the "non - assignability" previsions of the Agreement, inquired regarding the possible future desire of the City to transfer some or all of the responsibility for the ogerafion'ofCerfterRae Title "Pro]ect'') 'to 'another agency of the or putilid- enmity: i have'" had the opportunity to review the Agreement and the question raised by Councilor Schimmels is not one that we really anticipated in drafting of the Agreement (we were more focused on construction,and financing issues). Having said that though, I do not think that the Agreement would require approval of the transfer of the responsibility for operational or program • requirements by the City to another City created agency or body. For example, if the City created a Park Board or its own public facilities district, there would be no prohibition on the transfer of operational or programmatic responsibility by the City. However, if the transfer is to another governmental entity probably not associated with the City, or some private or non -profit corporation, such transfer would require the express consent of the PFD and the County. As expressed at the City Council Meeting, the City's primary concern is that the PFD live up to its financial.commitments under the Agreement and remits regional project tax revenue A LAW FIRM A LIMITED LIABILITY PARTNERSHIP INCLUDING OTHER LIMITED LIABILITY ENTITIES • Michael C. Ormsby mormsby@prestongatcs.com Direct Fax Number: (509) 444 -7868 601 WEST RIVERSIDE AVENUE, SUITE 1400 SPOKANE, WA 99201.0628 TEL: 15091 624:2100 FAX: 15091 456 - 0146 www.ptestongates_com Anchorage Coeur d'Alene Hong Kong Orange County Portland San Francisco Scattle Spokane Washington. DC 7" Mayor Mike DeVleining September 2, 2003 Page 2 ( "RPTR ") to the City in a timely manner in order to meet debt service payments on bonds issued by the City. The PFD's primary concern with both the County and the City is that each entity spends the RPTR it receives on the project defined in the Agreement, as that is the Project that has been qualified for RPTR. The PFD will be asking attorneys for both the County and the City to issue a legal opinion that the Project financed with RPTR'meets the requirements of the statute and that "commencement of construction" has occurred prior to January 1, 2004. (2) PFD Bond Financing. Councilor Schimmels raised questions regarding the PFD bond financing which was approved earlier this month. I am attaching to this letter schedules that have been received from Bond Counsel for the PFD in this financing, setting forth a variety of financial information for the Council. .0f particular interest, you should note that the PFD issued $77 million worth of bonds, but sold some of those bonds at a premium, generating an additional $3,526,715.05 ( "Excess Premium "). The Excess Premium is scheduled to be used to pay cost of issuance for the Bonds (underwriters discount, financial advisor fee, bond counsel fee) and other planning costs associated with the bonds and the project. By using the Excess Premium to cover these costs, the PFD will then have $77 million left for the purchase of real estate and convention center - construction. Selling bonds at a premium is not uncommon. It is more prevalent in today's market since interest rates are so low. Many bond purchasers want to buy bonds at a premium because they believe it will make it easier for them to remarket the bonds, should they want to. Do not be at all surprised that the purchase offer ultimately brought to the City by Lehman Brothers also includes some bonds acquired by purchasers at a premium. You would also be interested to know that the bond reserve fund ( "Reserve Fund ") for . the PFD bonds is initially being financed by the purchase of an insurance policy by the PFD from VLBIA; a raunicipal insurance. co: npany:.- As`you:recalIfrom,t e4low•of:funds • . included in the agreement, should the PFD not have adequate revenue to make principal and interest payments on their bonds, there is a draw on the Reserve Fund for the money necessary to • make the debt service payment. MBIA, as the provider of the insurance policy would :be called - on.to make payment. For your information and reference, I am attaching (both to -the e -mail version and hand delivered version) the following enclosures that 1 received from Bond Counsel for the PFD: the sources and uses of the Bond Proceeds; the Debt Service Schedule and coverage at 0% growth for the PFD.Bonds; and the estimated closing costs for the PFD Bonds. . There were a number of other issues raised and questions asked by members of the public at the meeting. I am not sure that I heard all of those questions or concerns, but let Me respond - to the ones that I do remember as follows: Mayor Mike DeVleming September 2, 2003 Page 3, (1) Open Public Meetings Act. The concern about the conduct about the negotiation sessions involving elected leadership from the PFD, County and City, as well as their professional and legal advisors, violating the Open Public Meetings Act (the "Act ") was raised. Differentiating between the policy considerations opposed to the legal requirements, is important. In my opinion, the Act, in my opinion, was not violated. (One could still make the "policy" argument that even though it was not required, that the meetings should have been open.) However, the decision about the characterization of the sessions was actually made by the PFD and the County. Both of those entities said that if the sessions were going to be open, neither of those entities would participate. At least directly, the City took no position, but remained at the meetings , at least tacitly agreed with it. (As your attorney, I can tell you that 1 do not believe the Open Public Meetings Act was violated:) The PFD Board also held two public hearings on the Agreement before it was approved by the PFD Board and held a third public hearing after it was approved and issues were raised by the County. I would also remind the Council that this Agreement has been available for public .. review since early August and -the August 26,2003, meeting was the second time the Agreement . had been brought before the City Council. I do appreciate that opponents of the Agreement might argue that public hearing on a finished document overview after it has already been approved by two bodies is not sufficient, but 1 can assure you that the Council has complied with all legal requirements relative to the development of the Agreement. - (2) Jeopardy of the Arena funds. One participant in the meeting on August 26 raised the issue that "Arena funds are now in jeopardy." If that is the case, it is actually an issue for the PFD Board to respond to, not the City of Spokane Valley City Council. (3) Nature ofiegal opinions available. There were a number of concerns expressed regarding legal review and legal opinions of those participating in this project. Preston Gates & Ellis, LLP "Preston Gates" will be prepared to give -an unqualified legal opinion on the bonds iss ueuby -the provided . that the - bonds - arc'valid;:: legal .•• � obligations of the City and the interest paid on the bond is exempted from Federal' Income Tax. Counsel for the PFD will be giving an opinion regarding the enforceability of the . • Agreement. Preston Gates will be giving an opinion that the project, or at least the portion of it financed with tax proceeds, is a "regional project" under the definition of the applicable statute: (We are currently working with City staff on developing the information and allocations necessary to be able to make this conclusion, but presumably if bonds are issued Preston Gates will have completed our work and concluded that it does qualify.) (4) Dissolution clause. One of the community members inquired as to whether or not there is a dissolution clause in this Agreement. The direct answer to that question is no. However, there is a clause in the Agreement to "sever" any unenforceable or other provisions that may be found to be illegal from enforcement under the terms of the Agreement. The point Mayor Mike DeVlemi_ng • September 2, 2003 Page 4 made by the citizen who raised this issue was a good one, but typically it is more validly made when dealing in a business relationship. Here, the City, PFD and the County have a contract, and you usually do not want to have a provision. for "dissolution" of a contract, particularly if one party can unilaterally invoke the dissolution clause, which is what is typically provided in the business setting when a dissolution clause is inserted. I guess the bottom -line here is that there is no dissolution clause, but I would respectively suggest that such a clause would not be appropriate given the nature of this particular Agreement. .Finally, the point was made by more than one citizen that "they did not feel enough • information had been shared .with members of the public about the project and the Agreement." Whether this feeling is prevailing in the community or not, I will leave to you. However, I would state that I would be happy to attend any information meeting with members of the public that the City Council or City staff may feel appropriate. Most of the issues that would arise at such a meeting are probably going to be fiscal or policy in nature, as opposed to legal, but again, - .if such meetings are held and our presence would be of benefit, we will be there. I hope this letter and the attachments respond adequately to the questions raised at the August 26 meeting. I will again be present on September 9, 2003, when this matter again C _J comes before the Council. However, you should feel free to contact me in the meantime, if you • have any questions or desire additional information. Thank you again for the opportunity to . work with all of you on this exciting project. Best personal regards. MCO:ana cc: David Mercier (with enclosures) Nina Regor (with enclosures) Ken Thompson (with enclosures) • Mike Jackson (with enclosures) Neil Kersten (with enclosures) Stan Schwartz (with enclosures) Very truly yours, PRESTON GATES'& L'LLIS LLP By Michael C. Ormsby Sources: Uses: SOURCES AND USES OF FUNDS Spokane Public Facilities District, Washington Hotel/Motel Tax and Sales /Use Tax Bonds Series 2003 Dated Date 09//112003 Delivery Date 09/11/2003 .Bond Proceeds: Par Amount • 77,000,000.00 Original Issue Discount (31,294.55) Premium 3,558,008.60 Delivery Date Expenses: Cost of Issuance Underwriter's Discount MBIA Bond Insurance Premium (0.625 %) MBIA Reserve Surety Premium (3 %) • Cost Reimbursement to District 80,526,714.05 . 421,564.69 613,690.00 1,076,000.00 208,000.00 • 909,578.92 3,228,833.61 Other Uses of Funds: ' Construction Fund 77,000,000.00 .. Contingency 297,880.44 77,297,880.44 80,526,714.05 Aug 20, 2003 9:42 am Prepared by Lehman Brothers (Finance 4.434 SPOKANE :DISTRICT- 200309 i 1) ' 7 \‘ J BOND DEBT SERVICE Spokane Public Facilities District, Washington Hotel/Motel Tax and Sales /Use Tax Bonds Series 2003 Dated Date Delivery Date 0 911 1120 03 09/11 /2003 Period Ending Principal Coupon Interest Debt Service 12/01/2003 • - 940,036.11 12101/2004 145,000 2.000% 4,230,162.50 12/01/2005 145,000 2.000% 4227,262.50 12/01/2006 155,000 2.500% 4,224,362.50 12/01 /2007 160,000 3.000% 4,220,487.50 12/01/2008 275,000 3.000% 4,215,687.50 12/01/2009 • 275,000 3.125% 4,207,437.50 12/01/2010 290,000 4.000% 4,198,843.75 12/01/2011 295,000 4.250% 4,187,243.75 12/01/2012 • 315,000 ' ' 4.500% 4,174,706.25 12/01/2013 325,000 4.500% 4,1 6 12101/2014 340,000 4.125% 4,145,906.25 12101/2015 360,000' 4.250% 4,131,88125 12/01/2016 370,000 • 4.250% 4,116,581.25 12/01/2017 385,000 4.375% 4,100,856.25 12/01/2018 3,465,000 5.750% 4,084,012.50 12/01/2019 3,6 5.750% 3,884,775.00 12/01/2020 3,875,000 5.750% 3,674,037.50 12/01/2021 • 4,100,000 5.750% 3,451,225.00 12/01 /2022 4,335,000 5.750% 3,215,475.00. 12/01/2023 4,585,000 5.750% 2,966,212.50 12/01/2024 . -4,845,000 5.750% 2,702,575.00 12/01/2025 5,125,000 5.750% 2,423,987.50 12/01/2026 5,420,000 5.750% 2,129,300.00 12/01/2027 4,710,000 , 5.750% 1,817,650.00 12/01/2028 , 4,445,000 ,. 5.750% , 1,546,825,00 12/01/2029 4,705,000 5.250% 1,291,237.50 12/0112030 4,950,000 5.250% 1,044,225.00 12/01/2031 . 5,210,000 5.250% 784,350.00 12/01/2032 5,485,000 5.250% 510,825.00 12/01/2033 4,245,000 5.250% 167,146.88 940,036.11 4,375,162.50 4,372,262.50 4,379,362.50 . 4,380,487.50 4,490,687.50 4,482,437.50 4,488,843.75 4,482,243.75 4,489,706.25 4,485,53125 4,485,906.25 4,491,881.25 4,486,581.25 4,485,85625 7,549,012.50 7,549,775.00 7,549,037.50 7,551,225.00 7,550,475.00 - 7,551,212.50 7,547,575.00 7,548,987.50 7,549,300.00 6,527,650.00 5,9.9 5,994,225.00 5,994,350.00 5,995,825.00' 4,412,146.88 77,000,000 95,175,845.49 172,175,845.49 Aug 20, 2003 . 9:42 am Prepared by Lehman Brothers . - .. . . (Finance 4.434 SPOK.ANE:DISTRICT- 200309 1 i ) Period Ending BOND DEBT SERVICE Spokane Public Facilities District, Washington Hotel/Motel Tax and Sales /Use Tax Bonds Series 2003 Dated. Date Delivery Date Principal Coupon ' 09111/2003 - - - 12/01/2003 - 940,036.11 940,036.11 .940,036.11 06/01/2004 •• 2,115,081.25 2,115,081.25 12/01/2004 145,000 2.000% 2,115,081.25 2,260,08125 4,375,162.50 06/01/2005 - - 2,113,631.25 2,113,63125 12/01/2005 • 145,000 2.000% 2,113,631.25 2,258,63125 4,372,262.50 06/01/2006 - - 2,112,181.25 2,112,18125 12/01/2006 .155,000 2.500% 2,112,181.25 2,267,181.25 4,379,362.50 06/01/2007 • • -. 2,110,243.75 . 2,110,243.75 12/01/2007 . . 160,000 3.000% 2,110,243.75 2,270,243.75 • '. 4;380,487.50 06/01/2008 , - - ' 2,107,843.75 2,107,843.75 12/01/2008 275,000 3.000% 2,107,843.75 2,382,843.75 . ' 4,490,687.50 06/01/2009 • - - 2,1.03,718.75 2,103,718.75 .. = 12/01/2009 275,000 3.125% 2,103,718.75 2,378,718.75 ' 4,482,437.50 06/0112010 - . - . 2,099,421.88 2,099,421.88 12/01/2010 • 290,000 . ' 4.000% 2,099,421.88 2,389,421.88 • 4,488,843.75 . 06/01/2011 2,093,621.88 2,093,621.88. - 12101/2011 295,000 4.250% 2,093,621.88 2,388,621.88 4,482,243.75 06/01/2012 - - - 2,087,353.13 2,087,353.13 . • - 12/01/2012 315,000 . 4.500% 2,087,353.13 2,402,353.13 • 4,489,706.25 06/01/2013 • - - 2,080,265.63 2,080,265.63 - 12/01/2013. • 325,000 - 4.500% 2,080,265.63 _ 2,405,265.63 4,485,531.25 06101/2014. ' - - 2,072,953.13 2,072,953.13 - 12/01/2014 340,000 . 4.125% 2,072,953.13 2,412,953.13 4,485,906.25 08/0112015 - 2,065,940.63 2,065,940.63 12/01 /2015 _ . .6Q,Q00 _., • • 4,250% 2,065,940,6,3 • > .2,425,940.63... 4.,49 06/01/2016 - ' 2,058,290.63 '2,058,290.63 • • - 12/01/2016 370,000 • . ,4.250% 2,058,290.63 2,428,290.63 • 4,486,581.25 06/01/2017 - - 2,050,428.13 2,050,428.13 . - 12/01/2017 .. 385,000 4.375% 2,050,428.13 ' 2,435,428.13 4,485,856.25 06/01/2018 . - - 2,042,006.25 . 2,042,006.25 - 12/01/2018 • 3,465,000 5.750%. 2,042,006.25 5,507,006.25 7,549,012.50 06/01/2019 1,942,387.50 1,942,387.50 - 12/0112019 3,665,000 • 5.750% 1,942,387.50 5,607,387.50 7,549,775.00 06/01/2020 . - . 1,837,018.75 1,837,018.75 • 12/01/2020 . 3,875,000• 5.750% 1,837,018.75 5,712,018.75 7,549,037.50 06/01/2021 - 1,725,612.50 . 1,725,612.50 - 12/01/2021 • 4,100,000 5.750% 1,725,612.50 5,825,612.50 ' 7,551,225.00 06/01/2022 • - 1,607,737.50 1,607,737.50 - 12/01/2022 4,335,000 5.750% . 1,607,737.50 5,942,737.50 7,550,475.00 06/01/2023 - - 1,483,106.25 1,483,106.25 - 12/01/2023 4,585,000 5.750% 1,483,106.25 6,068,106.25 7,551,212.50 06/01/2024 - 1,351,287.50 1,351,287.50 12/01/2024 4,845,000 • 5.750% 1,351,287.50 6,196,287.50 7,547,575.00 06/01/2025 - 1,211,993.75 ' 1,211,993.75 - 09/11/2003 09/11/2003 • Interest Debt Service Annual Debt Service Aug 20, 2003 9:42 am Prepared - t); Brothers • (Finance 4.434 SPOKANE:DISTRICT - 20030911) Period Ending 12/01/2025 06/01/2026 1 2/01/2026 06/01/2027 12/01 /2027 06/01/2028 12/01/2028 06/01 /2029 12/01/2029 06/01/2030 12/01 /2030 06/01 /2031 12/01/2031 06/01/2032 12/01/2032 06/01,2033 09/01/2033 12/01/2033 Spokane Public Facilities District, Washington Hotel/Motel Tax and Sales /Use Tax Bonds Series 2003 Principal Coupon 5,125,000 5.750% 5,420,000 5.750% 4,710,000 5.750% 4,445,000 5.750% 4,705,000 5.250 %' 4,950,000 5.250% 5,210,000 5.250% 5.250% 5.250% 5,485,000 4,245,000 77,000,000 BOND DEBT SERVICE Interest 1,211,993.75 1,064,650.00 1,064,650.00 908,825.00 908,825.00 773,412.50 773,412.50 645,618.75 645,618.75 522,112.50 522,112.50 392,175.00. 392,175.00 255,412.50 255,412.50 .111,431.25 . 55;715.63 Debt Service 6,336,993.75 1,064,650.00 6,484,650.00 908,825.00 5,618,825.00 773,412.50 5,218,412.50 645,618.75 5,350,618.75 522,112.50 5,472,112.50 392,175.00 5,602,175.00 255,412.50 5,740,412.50 111,431.25 4,300,715.63 95,175,845.49 • 172,175,845.49 Annual Debt Service 7,548,987.50 7,549,300.00 6,527,650.00 5,991,825.00 5,996237.50 5,994,225.00 5,994,350.00 5,995,825.00 4,412,146.88 172,175,845.49 Aug 20, 2003 9:42 am Prepared by Lehman Brothers (Finance 4.434 SPOKANE:DISTRICT - 20030911) ' 8o,d Component Serial Bonds: Par Amount Premium Production Underwriter's Discount Purchase Price Accrued•Intorost Net Proceeds BOND PRICING Spokane Public Facilities District, Washington Hotel /Motel Tax and Sales /Use Tax Bonds Series 2003 Maturity Call Call Premium Date Amount Rate Yield Price Date Price (- Discount) Takedown 12/01)2004 145,000 2.000% 1.180% 100.991 1,436.95 2.500 12101/2005 145,000 , 2.000% 1.5990% 100.890 1,290.50 2.500 12101/2006 - 155,000 2.500% 2.040% 101.425 2,208.75 3.750 12/01/2007 160,000 3.000% 2.510% 101.949 3,118.40 3.750 12/01/2008 • 275,000 3.000% 2.870% 100.623 , - 1,713.25 • 5.000 1210112009 275,000 3.125% 3.220% 99.465 - (1,471.25) 5.000 12/01/2010 290,000 4.000% 3.57056 102.711 - 7,661.90 5.000 12/01/2011 .295,000' 4.25016 3.630% 102.933 8,652.35 5.000 12/01/2012 315,000 4.500% 4.01056 103.741 11,784.15 5.000 12/01/2013 325,000 4.500% 4.140% 102.970 9,652.50 . 5.000 12101/2014 • 340,000 4.125% 4.280% 98.624 (4,678.40) 5.00b 12701/2015 360.000 4.2509E 4.400% 98.587 - (5,086.50) 5.000 12/01/2016 370,000 4.250% 4.5201/. 97.328 (9,886.40) 5.000. 12/01/2017 • 385,000 4.375% 4.630% 97.358 (10,171.70) 5.000 12/01/2016 3,455,000 5.750% 4.560% 109.628 C 12/0112013 100.000 333,610.20 6,250 12/01/2019 3,665,000 5.750% 4.630% 109.031 C 12/01/2013 100.000 330,986.15 . 6.250 12101/2020 3,875,000 5,750% 4.710% 108.352 C 12101/2013 100.000 323,640.00 6.250 12101/2021 4,100,000 5.750 %' 4.780% 107.763 C 12/01/2013 100.000 318,283.00 6.250 12/0112022 4,335.000 5.750% 4.830% 107.345 C 12101/2013 100.000 318,405.75 6.250 12/01/2023 4,585,000 5.750% 4.870% 107.011 C 12!01/2013 100.000 321,454.35 6.250 12/01/2024 4,845,000 5.75094 4.910% •106.679 C 12/01/2013 100.000 323,597.55 6.250 12/01/2025 5,125,000. '5.75056 4:930% 106.514 C 12101/2013 100.000 333,842.50 6.250 12/01/2026 5,420,000 - 5.750% 4.950% 106.348 C 12/01/2013 100.000 344,061,60 6.250 12/01/2027 _ 4,710,000 5,750% 4.97094 106.183 C 12/01/2013 100.000 291,219.30 6.250 12/01/2028 4,445,000 5.750% 4.980% 106.101 C 12/01/2013 • 100.000 271,189.45 6.250 52,405,000 3,526,714.05 Term Bonds due September 1,.2033: , 1210112029 4,705.000 '5.250% 5.250% 100.000 12/0112030 . 4,950,000 5.25095 5.250% 100.000 12101/2031 5,210,000 5.25096 5.250 94 . 100.000 12/01/2032 5,465,000 5.250% 5.250% 100.000 09101/2033 4,245,000 5.250% 5.25096 100.000 24,595,000 77,000,000 3,526,714.05 'Dated Date 09/11/2003 Delivery Date .09/11/2003 First Coupon ' 12/01/2003 77.000,000.00 3,526,714.05. 80,526,714.05 (613,690.00) 79,913,024.05 103.783148% 79.913,024.05 104.580148% (0.797000) 6.250 6.250 6.250 6.250 6.250 Aug 20, 2003 '9:42 am Prepared by 'Lehman Brothers ' (Finance 4.434 SPOKANE:DISTRICT- 20030911) Bond Component BOND SUMMARY STATISTICS Spokane Public Facilities District, Washington Hotel/Motel Tax and SaleslUse Tax Bonds Series 2003 Dated Date 09/11/2003 Delivery Date 09/11/2003 Last Maturity 09/01/2033 Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All -In TIC Average Coupon 'Average Life (years) : 22.406 Duration of Issue (years) 12.797 Par Amount Bond Proceeds Total Interest . Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service • 'Serial Bonds 52,405,000.00 Term Bonds due September 1, 2033 24,595,000.00 7.7,000,000.00 . 80,526,714.05 95,175,845.49 92,262,821.44 172,175,845.49 7,551225.00 5,744,51 3.84 Par Average Average Value Price Coupon Life 106.730 100.000 5.167338% 5.336769% 5.347640% 5.493518% 5.516481% 5.695% 19.705 5.250% 28.163 77,000,000.00 22.406 All -In Arbitrage TIC . TIC. _.. , Yield Par Value 77,000,000.00 ' 77,000,000.00 77,000,000.00 +Accrued Interest - - + Premium (Discount) 3,526,714.05 3,526,714.05 3,526,714.05 - Underwriter's Discount (613,690.00) (613,690.00) - Cost of Issuance Expense (421,564.69) - OtherAmounts (1,076,000.00) (2,193,578.92) (1,284,000.00) Target Value 78,837,024.05 77297,880.44 79,242,714.05 Target Date 09/11/2003 09/11/2003 09/11/2003 Yield 5.336769% 5.493518% . 5.167338% Aug 20, 2003 9:42 am Prepared by Lehman Brothers' (Finance 4.434 SPOKANE:DISTRICT- 20030911) Bond Component Serial Bands: Date FORM 8038 STATISTICS Spokane Public Facilities District, Washington Hotel /Motel Tax and Sales /Use Tax Bonds Series 2003 Dated Date Delivery Date 09111/2003 09/11/2003 12/0112004 145,000.00 2.000% ' 100.991 146,436.95 145,000.00 12/01/2005 145,000.00 2.000% 100.890 146,290.50 145,000.00 12/01/2006 .155,000.00 2.500% 101.425 , . 157,208.75 155,000.00 12/01/2007 180,000.00 3.000% 101.949 163,118.40 160,000.00 12101/2008 275,000.00 3.000% 100.623 ' 276,713.25 275,000.00 12/01/2009 275,000.00 3.125% 99.465 273,528.75 275,000.00 12/01/2010 290,000.00 ' 4.000% ' 102.711 297,861.90 • 290,000.00 12/01/2011 295,000.00 4.250% 102.933 303,652.35 295,000.00 12/01/2012 315,000.00 4.500% ' 103.741 326,784.15 . 315,000.00 12/01/2013 325,000.00 • 4.500% ' 102.970 334,652.50 325,000.00 12/01/2014 340,000.00 . 4.125% • 98.624 335,321.60 340,000.00 12/01/201,5 360,000.00 4.250% 98.587 354,913.20 360,000.00 12/01/2016 370,000.00 4.25096 97.328 360,113.60 370,000.00 12/01/2017 385,000.00 4.375% 97.358 374,828.30 385,000.00 12/01/2018 3,465,000.00. 5.750% • 109.628 3,798,610.20 3,465,000.00 12/01/2019 3,665,000.00 5.750% - 109.031 3,995,986.15 3,665,000.00 12/01/2020 3,675,000.00 5.750% 108.352 4,198,640:00 3,875,000.00 12/01/2021 4,100,000.00 5.750% - 107.763 4,418,283.00 4,100,000.00 12/01/2022 4,335,000.00 5.750% 107.345 4,653,405.75 4,335,000.00 • 12101/2023 4,585,000.00 5.750% • 107.011 4,906,454.35 : 4,585,000.00 12/01/2024 4,845,000.00 5.750% 106.679 5,168,597.55 4,845,000.00 12/01/2025 5,125,000.00 5.750% • 106.514 5,458,842.50 5,125,000.00 12/01/2026 5,420,000.00 5.750% 106.348 5,764,061.60 5,420,00(100 12/01/2027 4,710,000.00 5.750% 106.183 5,001,219.30 4,710,000.00 12/01/2028 . 4,445,000.00 5.750% • 106.101 • 4,716,189.45 4,445,000.00 Term Bonds due September 1, 2033: 12/0112029 ,4,705,000.00 - 5.250% - 100.000 4,705;000.00 4,705,000.00 12/01/2030 4,950,000.00 • 5.250% 100.000 4,950,000.00. 4,950,000.00 12/01/2031 5,210,000.00 5.250% 100.000 5,210,000.00 5,210,000.00 12/01/2032 .5,485,000.00 5.250% 100.000 5,485,000.00 • . 5,485,000.00 • 09101/2033 4,245,000.00 5.250% 100.000 4,245,000.00 4,245,000.00 Stated Weighted Net Maturity Interest Issue Redemption Average Interest Date Rate Price at Maturity Maturity Yield Cost Final Maturity 09/01/2033 5.250% 4,245,000.00 4,245,000.00 - - Entire Issue 80,526,714.05 77,000,000.00 • 22.3017 5.1673% 5.1033% Proceeds used for accrued interest Proceeds used for bond issuance costs (including underwriters' discount) Proceeds used for credit enhancement Proceeds allocated to reasonably required reserve or replacement fund Redemption Principal Coupon Price Issue Price at Maturity 77,000,000.00 80,526,714.05 77,000,000.00 0.00 1,035,254.69 1.284,000.00 0.00 Aug 20, 2003 9:42' am • Prepared by Lehman Brothers (Finance 4.434 SPOKANE:DISTRICT 20030911) J PROOF OF ARBITRAGE YIELD Spokane Public Facilities District, Washington HotelUMotel Tax and SaleslUse Tax Bonds Series 2003 Present Value to 09/1112003 • Date Debt Service - @ 5.1673376% -12101/2003 940,036.11 • 929,438.98 06/0112004 2,115,081.25 • 2,036,567.85 12/0112004 2,260,081.25 2,123,459.30 06/0112005 2,113,63125 1,935,846.35 12101 /2005 , 2,258,631.25 2,016,548,94 06/012006 2,112,181.25 1,838,300.01 121012006 2,267,181.25 1,923,504.57 06/012007 2,110,243.75 1,745,264.99 12/01/2007 2,270,243.75 1,830,303.10 06/01/2008 2,107,843.75 1,656,573.51 • 12/01/2008 2,382,843.75 • 1,825,532.79 • 06/01/2009 '2,103,718.75 1,571,098.89 12/01/2009 2,378,718.75 1,731,732.12 06/01/2010 2,099,421.88 • 1,489,906.82 12/01/2010 2,389,421.88 1,653,004.36 06/01/2011 2,093,621.88 , 1,411,891.04 12101/201.1 2,388,621.88 1,570,261.97 06/01/2012 2,087,353.13 1,337,649.74 12/0172012 2,402,353.13 1,500,738.76 06/01/2013 2,080,265.63 1,266,802.23 12/012013 50,975,265.63 . 30,260,165.40 06/01/2014 676,565.63 391,510.58 ' 12/01/2014 1,016,565.63 573,443.67 • • 06/01/2015 • 669,553.13 368,181.67 12/01/2015 1,029,553.13 551,883.81 06/01/2016 661,903.13 345,871.75 12/012016 • 1,031,903.13 525,631.48' '06/012017 654,040.63 324,764.79 12101/2017 . 1,039,040.63 _502,942.70..._.. 06/012018 645,618.75 304,537.87 12101/2018 645,618.75 296,965.27 06/012019 645,618.75 289,485.91 121012019 645,618.75 282,194.93 06/01/2020 645,618.75 ' 275,087.58 121012020 645,618.75 268,159.23 06/01/2021 645,618.75 261,405.38 12/012021 645,618.75 254,821.64 06/012022 645,618.75 248,403.71 12/012022 645,618.75 242,147.42 06/012023 • . 645,618.75 236,048.70 12/012023 645,618.75 230,103.59 06/012024 645,618.75 224,308.21 12/01/2024 645,618.75 218,658.79 06/01)2025 645,618.75 213,151.66 12)01/2025 645,618.75 207,783.22 06/01/2026 645,618.75 202,550.00 12/01/2026 645,618.75 197,448.59 06/0112027 645,618.75 192,475.65 Aug 20, 2003 9:42 am Prepared by Lehman Brothers • ' ' (Finance 4.434 SPOKANE:DISTRIC.T- 20030911) • Delivery date Par Value Premium (Discount) Arbitrage expenses ' Target for yield calculation PROOF OF ARBITRAGE YIELD Spokane Public Facilities District, Washington Hotel /Motel Tax and Sales/Use Tax Bonds Series 2003 Present Value to 09/11/2003 Date Debt Service • @ 5.1673376% • 12/01/2027 645,618.75 187,627.97 0610112028 645,618.75 182,902.38 121012028 ' 645,618.75 178,295.80 06/01/2029 645,618.75 173,805.25 12/01/2029 5,350,618.75 1,404,146.87 06/01/2030 522,112.50 133,565.53 12/01/2030 5,472,112.50 1,364,605.43. 06/012031 392,175.00 95,335.30 12/012031 5,602,175.00 1,327,554.30 06/012032 255,412.50 59,001.02 12/01/2032 5,740,412.50 1,292,653.92 ' 06/01/2033 111,431.25 24,460.65 09/01/2033 - 4,300,715.63 932,100.10 143,312,282.99 79,242,714.05 Proceeds Summary 09/11/2003 77,000,000.00 3,526,714.05 (1,284,000.00) 79,242,714.05 r Aug 20, 2003 9:42 am - Prepared by Lehman Brothers — "' ' • (Finance 4.434'SPOKA E:DISTRICT- 20030911)"' ..." PROOF OF ARBITRAGE YIELD Spokane Public Facilities District, Washington Hotel /Motel Tax and Sales /Use Tax Bonds Series 2003 Assumed CaII /Computation Dates for Premium Bonds Net Present Value (NPV) Bond • tvlaturity Call Call to 09/1112003 Component Date Date Price @ 5.1673376% SERIALS 12/0112018 12/01/2013 100.000 (174,525.61) SERIALS 12/01/2019 12/01/2013 100.000 (162,719.19) SERIALS 12101/2020 12/01/2013 100.000 (145,731.55) SERIALS 12/01/2021 12/01 /2013 100.000 (130,044.38) SERIALS 12/01/2022 1210112013, 100.000 (119,377.84) SERIALS 12101/2023 12/01/2013 100.000 (110,948.48) SERIALS 12/01/2024 12101/20/3 100.000 (101,154.60) SERIALS 12/01/2025 12/01/2013 100.000 (98,544.22) SERIALS 12/01/2026 12/01/2013 100.000 (95,2.19.33) SERIALS 12/01/2027 12/01/2013 100.000 (74,974:45) SERIALS 12/01/2028 .12/01/2013 100.000 (67,111.24) Rejected CaII /Computation Dates for Premium Bonds Net Present Value'(NPV) Bond Maturity Call' Call to09/11/2003 . Increase Component Date Date Price . @ 5.1673376% to NPV SERIALS 12/0/12018 - (122,305.62) 52,219.99 SERIALS 12/01/2019 (98,030.56) 64,688.63 SERIALS 12/01/2020 • (67,837.30) 77,894.25 SERIALS 12/01/2021 • - --- • (36,070.53)" • 91,967.85 SERIALS 12/01/2022 • (12,542.80) 106.835.04 SERIALS 12/01/2023 - 11,692.22 122,640.70 SERIALS 12/01/2024 38,125.12 139,279.72 SERIALS 12/01/2025 58,519.31 157,063.53 SERIALS 12/01 /2026 . • • 80,667.86 175,887.19 SERIALS 12/01/2027 85,950.72 160,925.17 SERIALS 12/01/2028 92,004.58 159,115.82 Aug 20,:2003 9:42 am Prepared by•Lehman Brothers' (Finance 4.434 SPOKANE :DISTRICT- 20030911) - Year Erbdin0 12101 2003. 2004 2005 2005 2007 2003 2009 2014} 2011 2012 2013 2014 2015 2016 2017 2019 2019 2020 2621 2022 2023 2024 2025 2020 2027 2020 2020 2030 2031 2032 2033 The Series 2001 Bands Pdnel 31 151,.°- -rest • 74301 PrfntI.ol "Rakn 61,520.000 51,653.506 $3.173,500 1,590,000 1,555.106 3,175,100 1.570,000 1,505,509. 3,175,60E 1.750,000 1,422,106 3,172,145 1,1335,0041 1,334,505 3,169,505 1,91..5 004 1,242,0- 3,057,055' 1,915,200 1,152,105 3,067,106 2,005,000 1.056,350 3,001,356 2,110,000 956,100 3,008.100 2,210,400 950,606 3,060,606 2,340,000 723,531 3,053,531 2,475,000 598,991 3,063,981 2,605,000 454,300 3,059,300 2,750,000 311,025 3,001,025 2,5135,000 159,175 3,054,775 SPOKANE PUBLIC FACILITIES DISTRICT CERT SERVICE SCHEDULE AND COVER/ 4 AT 4% GROWTH 5145,000 145,000, 155,0CH) 160,009 275,040 275,000 20040 295,000 315,000 325.000 340.000 300.000 370,000 305,000 3,465,000 3,665.1100 3,975.000 4,100.000 4,375,000 4,565,000 4,045,000 5,125,000 5,420,000 4,710,000 4,44 5,000 4,705,049 4,950,000 5210,000 5,4 55,000 2, 245 , 000 531,495,000 414.996,575 546,491,575 $77.000,800 '. : 2,000% •:260296 ,22.504% .3,000?6 .3.000% ,125(. '4.000% 4 -250% . 4.125% • 4.250% 4.250% _4,3755 5.780% 5.150% 5. 750% • 5.75046 5.750% 3.750% 3,750% 5.750% .5.750% 5.75096 :5.750% 5-250% • '3,250194 a -250% 5.25094 5,250% {1} Excludes Other Avall Funds, {21. hschides 9173,963.75 of B #sE Rerd puld on iho 1995 14,46140 Loam prior to 11s defoasonca,. Tho Elands • _ 141nµ1 5940,030 4.230,163 4.227,203 4.224,303 4.220,400 4.215,600 4,207,435 4,198.844 4,187,244 4,174,106 4,160,531 4,1'1S.606 4,131,981 4,110.561 4,100,056 4,064.013 3,89.,775 3,674.030. 3,451.225 3.215,475 2,906,213 2,702,575 2,423,950 2,129,300 1.017,650 1,546,825 1.291,'238 1.044,225 754,350 510,025 167,147 • • • • • • Tole T0Ilil Dabl 54x.Io 5940,439 54,287,506 (2) 4,775,163 7,550,269 4,372,263 7,5-47,869 4,379,363 •.7,551,409 4,360,460 7,550,094 4,490,6133 7,548,544 4,452,439 7,549,544 ;1,468,844 . 7,550, 200 4,482,244 • 3,540.350 4,469,705 7,550,313 4,465,531 _ 7,549,007 4,485,906 7,549,000 4,401,901 4.460.591 4.405.056 7.549,013 7,549,775 7.549.038 7.551.225 7,547,575 7,548,988 7,549,390 6,527,650 5,991,525 5,095,230 5,934,225 5,994.350 5,995,825 4,412,147 7.551,161 7,547.606 7,550.831 7,549.013 7,549,775 1,549.938 •.551.225 7,554,475 '7,550,475 7,551,213 7,551.213 7,547.575 - 7.548,988 7,549,340 6,527,650 5,991,625 5,996,2313 5,994,225 5,994,350 5,960,825 4.412.147 595,175.845 $172,175,1345 $216,841364 1,568.999 1,568.999 1,566.996 1,059,990 1.599.006 1,569,99d. 1,555,998 1.566,998 1.563,998 1,56$,996 1.56 1, 123, 598 545,193,845 PRt:d Js safe al 0% Growth Hotel!, . $01051 Skate Cradil Motel Tax Llse Yflx - SalletiLlse Tax 51,566.999 $6,016,222 51,980,014 • 1.568,998 6,916,222 1,990.014 1.566.993 .6,015,222 1,906,014 . 1.568,993 5,015,222 1,906,014 1,568,998 6,916,222 1,905,614 1.568,999 5,016,222 1,906,614 1,559,996 5,016,222 1,908,014 1,568,984 6,010,222 1,960,614 1.565.990 6,016222 1,965,514 • 1,565,996 6,036, 222 1,906,614 1,566,998 6,016,727 1,906,614 1,560,990 6,016.222 '1,956,514 1,566,990 6,016.222 . 1.966,614 1,566,995 5,010,222 1.060,611 • 1,5£6,998 6,015,222 1,965,614 1,0013,908 6,016,222 1,955,614 1,569,990 6,016.222 1,556,614 1,555,999 0+,016.222 1.065,611 1,566,590 • 6,010,222 1,066,614 5,016,222 1,966,014 6,015,222 1.966,614 6,916,222 1,960,614 0,015,222 .1.960,814 6.016,222 1,9436,01.1 0.016,222 671.4.17 1,.016,222 6.01 6,222 6,416,222 5,016,222 5,016,222 4, 459,536 $194.040,498 94 7,870,176 Total $9.551,534 0,551',834 9,551,834 9,551,034 9,551,83.1 9,551,834 9,551,83 9,551,834 9,551,834 9,551,934 9,551.834 9,551.1334 9,551.03 -4 9,551,634 9,551.934 9,551,934 9,551,034 0,551,R34 9,551,634 .9,551,834. 9,551.834 9,551.93.4 9.051,534 9.551,8.34 6.256,607 7,555,220 7,585,220 7,585,220 7,565,220 7,585.220 5,583.732 9281,010,520 OurpluM Debt SWAIM Revenues Cbvcra 90,264,320 2 - 22& 2,001,565 1.265x 2,403,965 1.266x 2,000.365 1.265x 2,001.744 1.265x 2,003.290 1,265x 2,002,290 1,265x 2,001.034 1,265x 2,003,46.1 1.265,4 2,001,522 1.265x 2.002.772 1.,265x 2.007,947 1,285x 2.000.053 1. 255x 2.004,2.25 1.2136x 2.901,203 1.285x 2.002,972 1. 265x 2.002,059 1. 265x 2,002,797 1.265x 2.000,609 1.205x 2,001.359 1,205x 2.000,522 1,2554 2,004,259 1,2054 2,002,847 1.255x 2,042, 534 1,265x 1,729,017 1,205x 1,593.305 1,266x 1 ,586.963 1,265x 1,$90,995 1.265x 1,590,070 1,265x 1,569,395 1,265x 1,171.595 1 -26€0 $52,109,136 - - Firm A. Dashen & Associates Foster Pepper & Shefelman Hawley Troxell Ennis & Hawley Perkins Coie Lukins & Annis l\l oody's Standard & Poor's Lukins & Annis Control Seneca • The Arbitrage Group i -Deal Prospectus U.S..Bank Sub -Total Spokane PFD MBIA MBIA Lehman Brothers Total [1] $150,000 total (fees and expenses) Tess $78,310.92 billed to date. [2] Excludes invoices through August 7, 2003 (recovered in PFD reimbursement). [3] Estimated; will not be known with certainty until final official statement is printed. $77,000,000 Spokane Public Facilities District Hotel /Motel Tax and Sales /Use Tax Bonds - Series 2003 Estimated Costs of Issuance at Closing Role • Amount Financial Advisor $103,000.00 Bond Counsel' 71,689.08 [1) Underwriter's Counsel 73,000.00 Initial Bond Counsel 51,004.22 District Counsel 37,000.00 [2] Rating Agency 32,750.00 Rating Agency 30,000.00 Interim Bond Counsel 10,821.39 POS /OS Printer '7,500.00 [3] 1995 Escrow Verifier 1,850.00 Official Statement Distributor 1,750.00 Escrow Agent • 1,200.00 S421,564.69 Out -of- Pocket Reimbursement 5909,578.92 Bond Insurer 1,076,000.00 Reserve Insurer 208,000.00 Underwriter 613,690.00 53,228,833:61 _ .8/20/2003 9:46 AM __ __ _ _ . Spokane. P_FD_2003..Spread.xls_COI__.... _. DRAFT ORDINANCE 03 -080 ORDINANCE NO. 03-080 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, MAKING FINDINGS REGARDING A REGIONAL PROJECT, AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE SPOKANE PUBLIC FACILITIES DISTRICT, AND PROVIDING FOR OTHER MATERS PROPERLY RELATING THERETO. WHEREAS, the Spokane Public Facilities District (the "PFD ") is authorized by chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, repair, finance and operate "regional centers" as defined in RCW 35.57.020 and the City of Spokane Valley, Spokane County, Washington (the "City ") is authorized by chapter 35.57.020 RCW to acquire and operate "regional centers;" and WHEREAS, RCW 35.57.020 and 36.100.030 authorize the City and the PFD to participate in the financing of all or any part of a regional center public facility on such terms as may be fixed by agreement between the respective legislative bodies without submitting the matter to a vote of the electors thereof, unless the provisions of the general laws of this state applicable to the incurring of indebtedness require such submission; and WHEREAS, the Board of Directors of the District has determined that it is in the best interests of the residents and inhabitants of the District for the District to undertake and accomplish three regional centers projects within its boundaries, i.e., the Convention Center Project, the Fair and Expo Center Project and the Mirabeau Point Project (collectively, the "Regional Center Projects "); and WHEREAS, the District submitted proposals to its qualified electors, and on May 21, 2002, those qualified electors approved proposals to expand its powers and to extend its existing sales and use tax and existing hotel/motel tax to enable the District to undertake and accomplish the Regional Center Projects; and WHEREAS, the District has determined that the amount required to be funded from Regional Tax Revenues (defined hereinafter) to undertake and accomplish the Regional Center Projects, including expenses incidental thereto, does not exceed $96,000,00; and WHEREAS, the parties intend to jointly develop the Regional Center Projects, in accordance with an "Interlocal Agreement for Development of Regional Center Projects" substantially in the form attached as Exhibit A and incorporated herein by reference ( the "Agreement "), as multipurpose facilities meeting the definition of "regional centers" under RCW 35.57.020. The Regional Center Projects are intended to directly serve Spokane County (the "County"), the District, the City of Spokane and the City, and their respective residents, as well as serving a broader population in the region, the State of Washington and portions of Idaho and Montana. The City, the County and the District have all indicated a desire to work cooperatively under RCW 36.100.030(2), chapter 35.559 RCW, chapter 39.34 RC\V and chapter 67.28 RCW so that the District, the County and the City can obtain sufficient financing to accomplish the Regional Center Projects consistent with the terms of the Agreement; and WHEREAS, the City expects to issue and sell its limited tax general obligation bonds in an aggregate principal amount of not to exceed $7,000,000 to provide financing for a portion of the costs of undertaking and accomplishing the Mirabeau Point Project; and WHEREAS, the PFD, County and the City each are authorized pursuant to chapter 35.57 RCW, either individually or jointly with another municipality such as the District, to acquire, lease, construct, add to, improve, replace, repair, maintain, operate and regulate the use of regional centers, and are further Draft Ordinance 03 -080 Page 1 of 4 DRAFT ORDINANCE 03 -080 authorized by chapter 35.59 RCW to participate in the financing of, and to appropriate and /or expend any available public money for regional centers. RCW 36.100.030(2) provides that a public facilities district, may enter into contracts under chapter 39.34 RCW for the joint provision and operation of facilities, including regional centers, and may enter into contracts under chapter 39.34 RCW where any party to the contract provides and operates such facilities for the other party or parties to the contract. Chapter 39.34 RCW further enables the Parties to carry out collectivity any activities that they are individually permitted to pursue under applicable law; and WHEREAS, the District, the County and the City have negotiated an agreement under which (1) the District will carry out the Convention Center Project; (ii) the County and the District will jointly develop the Fair and Expo Center Project under the County's lead, with the District providing financial assistance in the form of intergovernmental payments (the Fair and Expo Center Payments "); and (iii) the City and District will jointly develop the Mirabeau Point Project under the City's lead, with the District providing financial assistance in the form of intergovernmental payments (the "Mirabeau Point Payments "); NOW THEREFORE BE IT RESOLVED the City Council (the "Council ") of the City of Spokane Valley, Washington as follows: Section 1: Findings (1) Regional Center. The development of the Mirabeau Point Project (the "Project'') is estimated to attract visitors to the City of Spokane Valley, Spokane County, Washington by the year 2005. It is expected to compete with small- to medium -sized conference centers throughout Eastern Washington, Northern Idaho and Western Montana, and is expected to draw attendees from across that region by offering multiple -day conferences, conventions, trade shows, events and festivals attracting overnight visitors, as well as being available for smaller regional and community events, specialty sporting evens, artistic, musical, theatrical, or other cultural exhibitions, presentations, or performances. The Project is expected by 2006 to attract economic benefits in direct and indirect positive economic impacts to the City, primarily as a result of increased tourism and demand for services, food and lodging. The City Council therefore finds that the Regional Center Project meets the definition of "regional center" found in R.CW 35.57.020 and because it serves a regional population. In addition, the total Project cost, including debt service, is expected to exceed $10 million. (2) PFD Taxes. The Council finds that the City, PFD and Spokane County will meet the 33% match relating to the PFD Sales Tax and required under RCW 82.14.390 by contributions of cash and other services by private entities and individuals, the City of Spokane, the County, the City and PFD, which shall be counted as an in -kind donation. Section 2: Ratification of Interlocal Agreement. The City Council approves the lnterlocal Agreement between the County, the City and the PFD in substantially the form attached hereto as Exhibit A. The Mayor and the Clerk of the City are authorized and directed to execute and deliver the Agreement on the City's behalf in substantially the form attached hereto as Exhibit A. Section 3: City Bonds. The City Manager and his designees are authorized and directed to work with the City's financial advisor, underwriter, bond counsel, rating agencies, potential bond insurers and other appropriate persons or entities, to structure the City bonds and prepare for the issuance and sale of those bonds. The issuance of the City bonds shall be approved by future ordinance of the Council. Draft Ordinance 03 -080 Page 2 of 4 ATTEST: DRAFT ORDINANCE 03 -080 Section 4: Authority Granted to City Officials. The City Manager and other appropriate City Officials are hereby authorized to do and perform from time to time any and all acts and things consistent with the Ordinance necessary or appropriate to carry this Ordinance into effect. Section 5: Effective Date. This Ordinance shall be in effect from and after its adoption and publication, as required by law. Adopted by the City Council of the City of Spokane Valley, Spokane County Washington, this day of 2003. Christine Bainbridge, City Clerk (SEAL) CITY OF SPOKANE VALLEY Michael DeVleming, Mayor Draft Ordi nance 03 -080 Page 3 of 4 DRAFT ORDINANCE 03 -080 1, the undersigned, Clerk of the City Council of the City of the Spokane Valley, Spokane County Washington, hereby certify that the foregoing Ordinance is a full, true, and correct copy of an Ordinance duly adopted at a regular meeting of the City Council of said City, duly and regularly held at the regular meeting place thereof held on July , of which meeting all members of said Council had due notice and at which a majority thereof were present; and that at said meeting said Ordinance was adopted by the following vote: (SEAL) AYES, and in favor thereof, Councilmembers: NOES, Councilmembers: ABSENT, Councilmembers: ABSTAIN, Councilmembers: 1 further certify that I have carefully compared the same with the original Ordinance on file and of record in my office; that said Ordinance is a full, true, and correct copy of the original Ordinance adopted at said meeting; and that said Ordinance has not been amended, modified, or rescinded since the date of its adoption, and is now in full force and effect. IN WITNESS WHEREOF, I have set my hand and affixed the official seal of the City this day of , 2003. Christine Bainbridge, City Clerk Draft Ordinance 03 -080 Page 4 of 4 INTERLOCAL AGREEMENT FOR DEVELOPMENT OF REGIONAL CENTER PROJECTS Exhibit A _ aainnnC.e 034E0 Exhibit A Imalnul Agroa ait Pf° — Pope t of 30 SECTION 1 DEFINIIIONS 3 SECTION 2 DEVELOPMENT AND FINANCING OF THE CONVENTION CENTER PROJECT 7 2.1 Development of the Convention Center Project 7 2.2 Timeline for Development of Convention Center Project 8 2.3 Site Acquisition Development and Ownership 8 2.4 District Insurance for the Convention Center Project 8 2.5 Local Matching Contributions for Regional Center Projects 8 2.6 Financing of Convention Center Project 9 2.7 Application of Regional Tax Revenues 10 2.8 Future Convention Center Project Expansion 10 2.9 Convention Center Project Operation 11 SECTION 3 DEVELOPMENT AND FINANCING OF THE FAIR & EXPO CENTER PROJECT 11 3.1 Development of the Fair & Expo Center Project 11 3.2 Timeline for Development of Fair & Expo Center Project. 11 3.3 Site Acquisition, Development and Ownership of Fair & Expo Center Project 11 3.4 Financing of Fair & Expo Center Project 12 3.5 Fair & Expo Center Payments 12 3.6 County Insurance for the Fair & Expo Center Project 13 SECTION 4 DEVELOPMENT AND FINANCING OF THE MIIRABEAU POINT PROJECT 14 4.1 Development of the Mirabeau Point Project 14 4.2 Timeline for Development of Mirabeau Point Project 14 4.3 Site Acquisition, Development and Ownership of Mirabeau Point Project 14 4.4 Financing of Mirabeau Point Project 15 4.5 Mirabeau Point Payments 16 4.6 Valley City Insurance for the Mirabeau Point Project 17 'SECTION 5 MISCELLANEOUS 17 5.1 Administrator of Joint Undertaking 17 5.2 Supplemental Agreements 17 5.3 Effectiveness of Agreement 17 5.4 Assignment 17 50336620.04 TABLE OF CONTENTS P ale 5.5 Third Party Beneficiaries 17 5.6 Actions Contesting Agreement 17 5.7 Entire Agreement, Amendments and Waiver 18 5.8 Governing Law; Venue 18 5.9 Captions - 18 5.10 Notices 18 5.11 Specific Approvals 19 5.12 Severability 20 5.13 Counterparts 20 5.14 Time is of the Essence 20 snsssnOoa This Interlocal Ag eeinent for Development of Regional Center Projects ("Agreement") is entered into this day of July, 2003, by and among the SPOKANE PUBLIC FACILITIES DISTRICT (the "District"), a municipal corporation duly organized and existing under the laws of the State; SPOKANE COUNTY, WASHINGTON (the "County "), a class A county duly organized and existing under the laws of the state of. Washington (the "Slate "); and the CITY OF SPO1 AI E VALLEY (the "Valley City"), a municipal corporation duly organized and existing under the laws of the State. The entities •executing this Agreement are each referred to below as a "Party," and are collectively referred to as the "Parties," Unless otherwise defined in this Agreement, each capitalized term used in this Agreement shall have the meaning given in Article II. SU }65620.11 LNTELOCAL AGREEMENT FOR DEVELOPMENT Ol+ REGIONAL CENTER PROJECTS RECITALS "PLAN C" DRAFT OF JUNE 27, 2003 A. The District is authorized under RCW 36.1.00.030(1) to "acquire, construct own, remodel, maintain, equip, reequip, repair and operate sports facilities, entertainment facilities, convention facilities or regional centers as defined in RCW 35.57.020, together with contiguous parking facilities." B. RCW 36,100.040 provides that a public facilities district may submit an authorizing proposition to the voters of the district to impose art excise tax on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel or trailer camp, and the granting of any similar license to use real property on premises haying more than 40 lodging units the proceeds of which excise tax must be used for the acquisitii0n, design, construction, remodeling, maintenance, equipping, rcequipping, repairing and operation of its public facilities. C. RCW 82.14.048 provides that a public . facilities district may submit an authorizing proposition to the voters of the district to impose a sales and use tax at a rate not to exceed 2/10 of 1% of the selling price in the case of a sales tax, or value of the article used, iri the case of a use tax, the proceeds of which. sales and use tax shall be used for the financing, design, acquisition, construction, equippng, operating, maintainin, remodeling, repairing and reequippi n g of its public facilities. D. RCW 82.14.390 . authorizes the governing body of a public facilities district created before July 31, 2002, that commences construction of a new regional center, or improvement or rehabilitation of an existing regional center, before January 1., .2004, to impose a sales and use tax with the rate of such sales and use tax not to exceed 0.033 percent of the selling price in.the case of a sales tax or value of the article used in the case bf a use tax, which sales and use tax shall expire when the bonds issued for the construction of the regional center and the related parking facilities are retired, but not More than 25 years after the tax. is first collected. E. The Board of Directors of the District has determined that it is in the best interests of the residents and inhabitants of the District for the District to undertake and accomplish three regional center projects within its boundaries, i.e., the Convention Center Project, the Fair & Expo Center Project and the Mirabeau Point Project (collectively, the "Regional Center Projects "). F. The District submitted proposals to its qualified electors, and on May21, 2002, those qualified electors approved proposals to expand its powers and to extend its existing sales and use tax and existing hotel/motel tax to enable the District to undertake and accomplish the Regional Center Projects. G. The District has determined that the amount required to be funded from Regional Tax Revenues (defined hereinafter) to undertake and accomplish the Regional Center Projects, including expenses incidental thereto, does not exceed $96,000,000. H. The Parties intend to jointly develop the Regional Center Projects, in accordance with this Agreement, as multipurpose facilities meeting the definition of "regional centers" under RCW 35.57.020, "multi- purpose community centers" under RCW 35.59.010, and, in the case of the Convention Center Project and the Fair & Expo Center Project, "tourism- related facilities" under RCW 67.28.080. The Regional Center Projects are intended to directly serve the County, the District and the Valley City, and their respective residents, as well as serving a broader population in the region and the State. The Valley City, the County and the District desire to work cooperatively under RCW 36.100.030(2), chapter 35.59 RCW, chapter 39.34 RCW and chapter 67.28 RCW so that the District can obtain sufficient financing to accomplish the Regional Center Projects consistent with the terms of this Agreement. 1: By the District Bond Resolution, the District has approved or will approve the issuance and sale of its Sales/Use Tax and Hotel/Motel Tax Bonds, 2003, in an aggregate principal amount of not to exceed $77,000,000 to finance a portion of the costs of undertaking and accomplishing the Convention Center Project. J. By the County Bond Resolution, the County has approved or will approve the issuance and sale of its limited tax general obligation bonds as portions of two separate series in an aggregate principal amount of not to exceed $12,000,000 to provide financing for a portion of the costs of undertaking and accomplishing the Fair & Expo Center Project. K. By the Valley City Bond Ordinance, the Valley City has approved or will approve the issuance and sale of its limited tax general obligation bonds in an aggregate pri.mipal amount of not to exceed $7,000,000 to provide financing for a portion of the costs of undertaking and accomplishing the Mirabeau Point Project. L. The County and the Valley City each are authorized pursuant to chapter 35.59 RCW, either individually or jointly with another municipality such as the District, to acquire, lease, construct, add to, improve, replace, repair, maintain, operate and regulate the use of multi- purpose community centers, and are further authorized by chapter 35.59 RCW to participate in the financing of, and to appropriate and/or expend any available public money for, multi- purpose 50366820.04 -2- community centers. RCW 67.28.120 provides that any municipality (including any city or county) may, individually or jointly with any other municipality or person, acquire and operate tourism- related facilities. RCW 36.100.030(2) provides that a public facilities district may enter into agreements under chapter 39.34 RCW for the joint provision and operation of facilities, including regional centers, and may enter into contracts under chapter 39.34 RCW where any party to the contract provides and operates such facilities for the other party or parties to the contract. Chapter 39.34 RCW further enables the Parties to carry out collectively any activities that they are individually permitted to pursue under applicable law. M. The County, the District and the Valley City have negotiated this Agreement under which (i) the District will carry out the Convention Center Project; (ii) the County and the District will jointly develop the Fair & Expo Center Project under the County's lead, with the District providing financial assistance in the form of intergovernmental payments (the "Fair & Expo Center Payments "); and (iii) the Valley City and the District will jointly develop the Mirabeau Point Project under the Valley City's lead, with the District providing financial assistance in the form of intergovernmental payments (the "Mirabeau Point Payments "). N. The District, by Resolution No. 03 -03 adopted on July 1, 2003, has authorized the execution of this Aa eement on behalf of the District. O. The County, by Resolution No. adopted on authorized the execution of this Agreement on behalf of the County. 2003, has P. The Valley City, by Ordinance No. passed on , 2003, has authorized the execution of this Agreement on behalf of the Valley City. NOW, THEREFORE, in consideration of the mutual representations, covenants, promises and agreements hereinafter contained, the District, the County and the Valley City mutually represent, covenant, acknowledge and agree as follows: SECTION 1 DEFINITIONS. AGREEMENT Unless otherwise defined in this Agreement, each of the following terms shall have the meaning set forth in this Section 1. 1.1 Acquisition, acquiring or acquire shall include purchase, securing, lease, receipt by gift or grant, condemnation, transfer or other acquirement, or any combination thereof. 1.2 Arena Reimbursement Obligation means the aggregate amount of any District funds, other than Regional Tax Revenues, that are used by the District for the purposes of acquiring, constructing, .financing and otherwise supporting the Regional Center Projects, including but not limited to making interfund loans for the construction or improvement of the Convention Center Project, paying debt service on the District Bonds, and making Intergovernmental Payments, or advancing funds to meet necessary Convention Center operating and maintenance expenses for which no other funds are available before 2018, plus interest at the 5Q3S6S20.w -3- Intergovernmental Rate on the amounts so used, loaned or advanced, until fully repaid from Regional Tax Revenues in accordance with Section 2.7 of this Agreement. 1.3 Bond Fund means the Spokane Public Facilities District Bond Fund established by District Bond Resolution No. 01 -02. 1.4 Business Day means any day other than: (a) a Saturday or Sunday, (b) a day on which commercial banks in the County are authorized or obligated to close, or (c) a day on which the offices of the County are closed. 1.5 Code means the Internal Revenue Code of 1986, as amended, together with corresponding and applicable final or temporary regulations and revenue rulings issued or amended with respect thereto by the United States Treasury Department or the Internal Revenue Service. 1.6 Convention Center Project means a Regional Center Project consisting of the Acquisition of an interest in, construction of improvements to and the expansion of the real ' property located in the City of Spokane, commonly known as the Spokane Convention Center, all as more particularly described in Exhibit A, attached and incorporated herein by reference and as described in the Spokane Center Development Agreements. The Convention Center Project constitutes both a "regional center" as that term is used in RCW 36.100.030(1) and RCW 35.57.020 and a "tourism - related facility" as that term is used in RCW 67.28.080. 1.7 County means Spokane County, Washington. 1.8 County Bonds mean (i) S6,445,000 in principal amount of the .County's $19,205,000 Limited Tax General Obligation and Refunding Bonds, Series 2003A, authorized by the County for improvements to the Fair & Expo Center pursuant to Resolution No. 3.0471, adopted by the County's Board of County Commissioners on May 20, 2003, and (ii) $5,555,000 in principal amount of the County's Limited Tax General Obligation Bonds, Series 2003C, to be issued by the County. 1.9 County Bond Resolution means, collectively, Resolution No. 3 -0471 of the County adopted on May 20, 2003, and such other resolution of the County authorizing, among other matters, the issuance and sale of the County Bonds. 1.10 Develop or Development includes any one or more of the following: acquisition of, construction of, ownership of, remodeling, maintaining, equipping, re-equipping, repairing, financing, and operating the Regional Center Projects as specified herein and undertaken by the Parties as agreed to in this Agreement according to the powers conferred upon the Parties under chapters 35.57;35.59, 36.100, 39.34 and 67.28 RCW and RCW 82.14390. 1.11 District means the Spokane Public Facilities District, a municipal corporation duly organized and existing under the laws of the State 50386820.04 0 1.12 District Bond Reserve Insurance means any policy of reserve insurance, surety bond or other similar instrument obtained by the District to satisfy the District Bond Reserve Requirement in lieu of a deposit of cash and investments in the Reserve Fund to satisfy the District Bond Reserve Requirement in accordance with the District Bond Resolution. 1.13 District Bond Reserve Requirement means the debt service reserve requirement for the District Series 2003A Bonds established by the District Bond Resolution. 1.14 District Bond Resolution means one or more resolutions of the District authorizing, among other matters, the issuance and sale of the District Bonds. 1.15 District Bonds means the District's Sales /Use Tax and llotellMotel Tax Bonds, 2003, issued in one or more series, in an aggregate principal amount of not to exceed $77,000,000, authorized by the District Bond Resolution. 1.16 District Lodging Tax means the two percent (2 %) excise tax imposed by the District on the sale of or charge made for the furnishing of lodging under the authority of RCW 36.100.040, as such tax has been extended beyond 2017 by District Resolution No. 02 -03 with the approval by a majority of the voters of the District voting thereon at a special election held on May 21, 2002. 1.17 District Sales & Use Tax means the one -tenth of one percent (0.1%) sales and use tax imposed by the District under the authority of RCW 82.14.048, as extended beyond 2017 by District Resolution No. 02 -02 with the approval by a majority of the voters of the District voting thereon at a special election held on May 21, 2002. 1.18 District State Credit Sales & Use Tax means the thirty-three one thousandths of one percent (0.033 %) sales and use tax imposed by the District under the authority of RCW 82.14.390 and District Resolution No. 01 -06. 1.19 Fair & Expo Center Project means a Regional Center Project consisting of the construction of improvements to the real property located in the County, commonly known as the Spokane County Fair & Exposition Center, all as more particularly described in Exhibit A. attached and incorporated herein by reference. The Fair & Expo Center Project constitutes both a "regional center" as that term is used in RCW 36.100.030(1) and 35.57.020 and a "tourism - related facility" as that term is used in RCW 67.28.080. 1.20 Fair & .Expo Center Payments means the scheduled intergovernmental payments required to be paid by the District to the County in respect of the Fair & Expo Center Project pursuant to Section 3.5 of this Agreement as set forth in Exhibit C -1 attached hereto and incorporated herein by this reference, together with all compensatory payments required to be paid by the District to the County pursuant to Section 3.5 of this Agreement. 1.21 Intergovernmental Payments means the Fair &. Expo Center Payments and the Mirab Point Payments. 50396x10.04 -5- 1.22 Intergovernmental Payment Schedule means the schedule attached as Exhibit C, showing dates and amounts of Intergovernmental Payments required to be made by the District pursuant to this Agreement. 1.23 Intergovernmental Rate means a variable interest rate equal to the average rate of return on local government funds invested in the County's Local Governmental investment Pool, calculated monthly in accordance with the County's standard procedures, or, if the County's Local Government Investment Pool ceases to exist, a variable rate equal to the average rate of return on local government funds invested in the Local Government Investment Pool held and administered by the Office of State Treasurer, calculated monthly in accordance with its standard procedures. When used to determine compensatory amounts included in lntergovermnental Payments, interest included in Arena Reimbursement Obligations, or for any other purpose of this Agreement, the Intergovernmental Rate shall be applied on the basis of the actual number of days elapsed during a 365/366 -day year. 1.24 Mirabeau Point Project means a Regional Center Project consisting of the construction of improvements to the real property located in the Valley City, commonly known as Mirabeau Point, all as more particularly described' in Exhibit A. attached . hereto and incorporated herein by reference. The Mirabeau Point Project constitutes a "regional center" as that term is used in RCW 36.100.030(1) and 35.57.020 and a "multi- purpose community center" as that term is used in RCW 35.59.010. 1.25 Mirabeau Point Payments means the scheduled intergovernmental payments required to be paid by the District to the Valley City in respect of the Mirabeau Point Project pursuant to Section 4.5 of this Agreement as set forth in Exhibit C -2 attached hereto and incorporated herein by this reference, together with all compensatory payments required to be paid by the District to the Valley City pursuant to Section 4.5 of this Agreement, except that the Regional Tax Revenues constituting Mirabeau Point Payments shall not include any portion of District Lodging Tax revenues. ' 1.26 NRMSIRs means nationally recognized municipal securities information repositories, as designated by the SEC. 1.27 Outstanding means, with respect to the District Bonds, the County Bonds and the Valley City Bonds, any obligation that has not yet been paid, redeemed or legally defeased. 1.28 Party means any one of the parties to this Agreement, collectively, the Parties. 9 1.29 Project Fund means the Convention Center Project Fund established by the District Bond Resolution. 1.30 Regional Center Project means any one of the Convention Center Project, the . Fair & Expo Center Project and the Mirabeau Point Project (collectively, the Regional Center . Projects), each of which constitutes a "regional center" as that term is used in RCW 35.57.020. 0 ] ;31 Regional Tax Revenues means, collectively, all proceeds of the District State Credit Sales & Use Tax received on and after March 1, 2003, and all proceeds of thc District Lodging Tax and the District Sales & Use Tax received by or available to the District from and after the earlier of (i) January 1, 2018, and (ii) the date on which all indebtedness incurred by the District in connection with the Spokane Veterans Memorial Arena is retired and /or ]egal.ly defeased- 1.32 Reserve Fund means the Spokane Public Facilities District Reserve Fund established by District Resolution No 01-02. 1,33 S' means the -United States •Securities and .Exchange Commission. 1 -34 Spokane Center .Development Agreements means, collectively, the Intel Cooperation Agreement; Property Transfer Agreement. and Lease, each executed and delivered by The City of Spokane and the District effective _ 2003, 1.35 Treasurer means the County Treasurer. 1.315 Malley City njea_ns the City of Spokane Valley, Washington. 1.37 Valley City Woad Ordinance means the ordinance passed by the Valley City authorizing, among other matters, the issuance and sale of the Valley City Bonds. 1.38 Valley. City Bonds means an issue of Valley City limited tax general obligation bonds authorized by the Valley City Bond Ordinance to be issued in an aggregate principal amount of not to exceed $7,000,000 to finance a portion of the cost of the Mrabeau Point Project. SECTION 2 DEVELOPMENT AND FINANCING OF THE CONVENTION CENTER PROJECT 2.1 Development of the Convention Center Pro ect. The District and the City of Spokane have entered into the Spokane Center Development Ageernents for the principal purpose of making provision for the design, acquisition, construction, equipping, financing, and operation by the District of the Convention Center Project on a cooperative basis. If accordance with the Spokane Center Development Agreements and this Agreement, the District, on behalf and for the benefit of itself and Spokane, will commence construction of the Convention Center Project on or before January 1, 2004, 'and thereafter proceed with due diligence to completion of the Convention Center Project The District, on behalf and for the benefit of itself and Spokane, will be the lead agency with the primary responsibility for the development of the Convention Center Project as a "regional center" (as defined by RCW 35.57- 020), as a "multi- purpose community center" (as defined by RCW 35. 59.010) and as a "tourism- related facility" (as defined by RCW 67,28,080), and shall finance, acquire, design, construct, own, lease, operate and maintain the Convention Center Proj ect, all subject to the limitations set forth in the Spokane Center Development Agreements and this Agreement The Convention Center Project shall be -7- developed and have the features substantially as described in Exhibit A and the Spokane Center Development Agreements. 2.2 Timeline for Development of Convention Center Project. The District, on behalf and for the benefit of itself and the City of Spokane, intends to commence construction of the Convention Center Project by carrying out the demolition of certain existing structures, commencement of parking improvements related thereto, or other construction activity prior to December 31, 2003. The Convention Center Project is expected to be completed and placed in service on or about September 1, 2006. The estimated timeline for financing and construction of the Convention Center is set forth in Exhibit B. The dates set forth in Exhibit B are target dates for action by the District. The failure of the District to meet . the dates set forth in the timeline for financing and construction of the Convention Center shall have no effect on the other provisions of this Agreement. 2.3.1 Pursuant to the Spokane Center Development Agreements, the City of Spokane and the District have agreed to acquire all additional real property necessary to serve as a site for the Convention Center Project, and the City of Spokane has agreed to exercise its eminent domain authority, if necessary, to acquire that additional real property in accordance with the Spokane Center Development Agreements. Title to Convention Center Project will be held by the City of Spokane and the District as provided in the Spokane Center Development Agreements. 2.3.2 The District, on behalf and for the benefit of itself and the City of Spokane, will acquire the approvals necessary and shall take such other actions as may be required to develop the Convention Center Project consistent with the Spokane Center Development Agreements. 2.3.3 The District shall periodically provide reports to the other Parties on the design, construction and operation of the Convention Center. 2.3.4 The District shall have full and complete control over the development of the Convention Center Project, subject to the terms of the Spokane Center Development Agreements and this Agreement. In addition, the District shall have full and complete control over the operations of the Convention Center Project, subject to the terms of the Spokane Center Development Agreements. 2.4 District Insurance for the Convention Center Project The District agrees to acquire and maintain insurance in the form and amounts required by the Spokane Center Development Agreements and otherwise as are consistent with the coverage of comparable Convention Center facilities. • 2.5 Local Matching Contributions for Regional Center Projects. As required by RCW 82.14.390(4), the Parties have provided and will provide funds for the Regional Center Projects from other public or private sources, including but not limited to cash, in -kind contributions, and land donated and used for the siting of the Regional Center Projects, equal to at least 33 percent 501666:0.04 2.3 Site Acquisition, Development and Ownership. -8- C._ of the amount collected by the District under the District State Credit Sales & Use Tax (collectively, the "Local Match "). The Local Match includes and is anticipated to include at least the following: (i) proceeds of the voter - approved District Sales & Use Tax, (ii) proceeds of the voter - approved District Lodging Tax, (iii) land, existing improvements and personal property contributed by the City of Spokane for use as the site of the Convention Center Project; and (iv) land contributed by the County and /or the Valley City for use as the site of the Mirabeau Point Project. The City's transfer of the Spokane Center to the District will be accomplished pursuant to the Spokane Center Development Agreements. 2.6 Financing of Convention Center Project. The District shall be solely responsible to finance the Convention Center Project with proceeds of the District Bonds and other legally available funds allocated by the District for that purpose. The District shall have no obligation to provide funds for the Convention Center Project other than as expressly provided by the Spokane Center Development Agreements and this Agreement. The County and the Valley City shall have no obligation to provide funds for the development of the Convention Center Project. In order to enable the District Lodging Tax and District Sales & Use Tax to be used to provide debt service on any and all obligations issued on a parity with the District's Hotel/Motel Tax and Sales/Use Tax Refunding Bonds, Series 2001A (AMT) and Series 2001B (Non - AMT), the District shall, in conjunction with the issuance of the District. Bonds, at its sole cost and expense, exercise its option to purchase the facilities financed by that certain 1995 Financing Lease Agreement dated as of June 5, 1995, by and between the District and the City of Spokane, thereby enabling the City of Spokane to carry out the defeasance and redemption of its outstanding Leased Revenue Bonds, Series 1995 (Multi - Purpose Arena Project). 2.6.1 The District Bonds shall be issued and sold pursuant to the District Bond Resolution in one or more series in an aggregate principal amount not exceeding S77,000,000, shall be District Series 2003 Bonds; shall be payable from and secured by a pledge of Regional Tax Revenues and other revenues of the District; shall be payable on [June 1] (interest only) and [December 1] (principal and interest) of each year; shall finally mature no later than June 1, 2033; and shall have such other terms as provided in the District Bond Resolution. 2.6.2 The District may issue refunding bonds at any time in its sole discretion, without the consent of any other Party, for the purpose of refunding its outstanding obligations, including District Bonds. The Parties recognize and agree that the District Bonds will be issued on a parity of lien with the District's Hotel/Motel Tax and Sales/Use Tax Refunding Bonds, Series 2001 A (AMT) and Series 2001 B (Non -AMT). The District may issue additional parity bonds as long as it complies with the parity bond requirements set forth in [District Resolution No. 01 -02 and] the District Bond Resolution. The District may also, without the consent of any other Party, utilize such interfund loans as it deems necessary and appropriate to carry out the financing of the Regional Center Projects and to make Intergovernmental Payments. 2.6.3 The District shall covenant in the District Bond Resolution to maintain the tax exemption for the District Bonds, and shall provide to the other Parties copies of-annual financial information and operating data and any material event notices filed by the District with NRMSIRs pursuant to its continuing disclosure undertaking under SEC Rule 15c2 -12 in respect of the District Bonds. 2.6.4 The Parties recognize that Regional Tax Revenues (as defined for the purposes of this Agreement) may not be sufficient in every calendar year to pay in full all of the District's obligations in respect of the cost of acquiring and constructing the Convention Center Project, paying debt service on the District Bonds, making Intergovernmental Payments, and otherwise supporting the Regional Center Projects, but that the District has other available funds that the District will use to meet those obligations. Any use by tte District of any of its funds, other than Regional Tax Revenues, for the Regional Center Projects shall create and constitute an Arena Reimbursement Obligation in a like amount that shall be repaid from Regional Tax Revenues in accordance with Section 2.7 of this Agreement. 2.7 Application of Regional Tax Revenues. The District promptly upon their receipt shall deposit all Regional Tax Revenues into its Regional Center Projects Revenue Fund and use and apply those Regional Tax Revenues (and the District directs the Treasurer on behalf of the District to cause the Regional Tax Revenues to be used and applied) only for the following purposes and in the following order of priority: First, to make payments into the Bond Fund as necessary to pay all regularly scheduled payments (including mandatory sinking fund payments) of principal of and interest on the District Bonds as required by the District Bond Resolution and to pay debt service on bonds issued on a parity of lien with the District Bonds; Second. to make payments into the Reserve Fund as necessary to maintain a balance therein equal to the District Bond Reserve Requirement and/or to reimburse the provider of District Bond Reserve Insurance for draws thereon as required by the District Bond Resolution and resolutions authorizing the issuance of parity bonds; Third, to pay the Fair & Expo Center Payments and the "Mirabeau Point Payments, pari passu in proportion to the respective amounts thereof then due and payable (including shortfall payments and compensatory payments under Sections 3.5 and 4.5); Fourth, to pay Arena Reimbursement.Obligations; and Fifth, only upon payment in full of all Arena Reimbursement Obligations, twelve ninety- sixths (12/96) to the County, seven ninety- sixths (7/96) to the Valley City and seventy -seven ninety- sixths (77/96) to the District. Any Regional Tax Revenues distributed under "Fifth," above, shall be used by. the County and by the Valley City, respectively, solely for lawful Regional Center Project purposes, consistent with applicable law and with the resolutions of the District imposing the taxes constituting the Regional Tax Revenues. 2.8 Future Convention Center Project Expansion.' The District may at any future time proceed with Development of additions to or subsequent phases of the Convention Center, but none of the other Parties shall be obligated with respect to the financing of such future improvements. If some or all of the Parties agree to participate in the development of such additions, the respective Parties may enter into an addendum to this Agreement governing the :o3s6n0A4 -10- ' J rights and obligations of those Parties with respect to the design, construction and operation of the additional improvements. 2.9 Convention Center Project Operation. The District shall operate the Convention Center in a businesslike manner and provide a level of service equivalent to or better than the services provided by comparable public facilities in the state. The Convention Center shall be available for use by the general public at rates established by the District. So long as District State Credit Sales & Use Taxes are being collected and applied to the repayment of the Bonds, the District shall operate the Convention Center Project as a "regional center project" as that term is defined in RCW 35.57.020. 3.1 Development of the Fair & Expo Center Project. The County, on behalf and for the benefit of the County and the District, shall be the lead agency with the primary responsibility for the development of the Fair & Expo Center Project as a "regional center" (as defined by RCW 35.57.020) and as a "tourism - related facility" (as defined by RCW 67.28.080), and shall finance, acquire, design, construct, own, operate and maintain the Fair & Expo Center Project, and otherwise administer its development and operation, for the benefit of and in cooperation with the District, all subject to the limitations set forth herein. 3.2 Timeline for Development of Fair & Ex.o Center Project. The County, on behalf and for the benefit of the County and the District, commenced construction of the Fair & Expo Center Project on or about February 15, 2003. The County therefore represents and warrants to the District that construction of the Fair & Expo Center Project commenced before January 1, 2004. The activity that constituted commencement of construction of the Fair & Expo Center Project was the commencement by the County's contractors of the construction of a new grandstand at the Fair & Expo Center that is presently scheduled for completion on or about September 1, 2003. 503E6E2U.04 SECTION 3 DEVELOPMENT AND FINANCING OF THE FAIR & EXPO CENTER PROJECT 3.3 Site Acquisition, Development and Ownership of Fair & Expo Center Project. 3.3.1 The County has acquired and now owns all real property necessary to carry out the Fair & Expo Center Project. 3.3.2 The County shall, on behalf of itself and the District, acquire the approvals necessary and shall take such other actions as may be required to enable the site to be suitable for use as a Fair & Expo Center Project. 3.3.3 The County shall provide the District with periodic reports on the design, construction and operation of the Fair & Expo Center Project, at least quarterly during construction and at least annually thereafter. 3.3.4 The County shall have full and complete control over the development the Fair & Expo Center Project, and shall own and operate the Fair & Expo Center Project for and on behalf of itself and the District. In addition, the County shall have full and complete control over the operation and management of the Fair & Expo Center, subject to the terms of this Agreement. All of the District's legally cognizable ownership interest in the Fair & Expo Center, if any, shall terminate and revert to the County upon the termination of the District's obligation to make Fair & Expo Center Payments to the County. 3.3.5 The District and the County each find that the Fair & Expo Center Project is a viable project construction of which has commenced before January 1, 2004. The County agrees to provide, by and through the Fair & Expo Center Project, services to all the residents of the County, which necessarily includes services to the residents of the other Parties to this Agreement. 3.4 Financing of Fair & Expo Center Project. The County shall issue the County Bonds to finance the Fair & Expo Center Project. The County Bonds shall be payable from and secured by a pledge of the full faith and credit of the County (within the constitutional and statutory tax limitations provided by law without a vote of the electors of the County); shall be payable on June 1 (interest only) and December 1 (principal and interest) of each year; shall finally mature no later than June 1, [2033]; and shall have such other terms as provided in the County Bond Resolution. The District acknowledges and agrees that, although the County Bonds will be limited tax general obligation bonds pledging the full faith and credit of the County (within the constitutional and statutory tax limitations provided by law without a vote of the electors of the County), the County at its sole option may (but is not required to) apply the proceeds of the Fair & Expo Center Payments to the payment of the County Bonds. The County Bonds and any disclosure documents related to the County Bonds shall contain the following statement (or substantially similar language): "The [County Bonds] are not obligations of the Spokane Public Facilities District, the City of Spokane, the City of Spokane Valley, the State of Washington or any other political subdivision of the State of Washington other than the County. All liabilities insured by the County with respect to the [County Bonds] shall be satisfied exclusively from the tax revenues, credit and other legally available sources of the County and no owner of the [County Bonds] or other person shall have any right of action against or recourse to the Spokane Public Facilities District, the City of Spokane, the City of Spokane Valley, the State of Washington or any other political subdivision of the State of Washington, or any of their respective assets, credit, revenues or services on account of any debts, obligations or liabilities relating to the [County Bonds]." Furthermore, the District acknowledges that its obligation to make the Fair & Expo Center Payments as required by Section 3.5 of this Agreement and described in the Intergovernmental Payment Schedule may be material to the offer and sale of the County Bonds, and may be disclosed to potential purchasers and purchasers of those County Bonds. At the County's request, the District will make an appropriate continuing disclosure undertaking in respect of the County Bonds to the same extent as if the District were treated as an "obligated person" (within the meaning of SEC Rule 15c2 -12) in respect of the County Bonds. The County shall covenant in the County Bond Resolution to maintain the tax exemption for the County Bonds, and shall provide to the District copies of annual information and operating data and any material event notices filed by the County with NRMSIRs pursuant to its continuing disclosure undertaking under SEC Rule 15c2 -12 in respect of the County Bonds. 3.5 Fair & Expo Center Payments. The District shall make Fair & Expo Center Payments to the County in respect of the Fair & Expo Center Project on the payment dates and in 50365620,0+4 -12- the amounts set forth in the lntergovermmental Payment Schedule attached as Exhibit C -1 to this Agreement. The Fair &. Expo Center Payments shown on the Intergovernmental Payment Schedule reflect amounts corresponding to expected debt service on the County Bonds. Upon the issuance of the County Bonds, Exhibit C -1 shall be replaced with an adjusted schedule approved by the District, acting reasonably, to ensure, assuming Intergovernmental Payments to the County and the Valley City are used for debt service purposes, that the amounts of the Intergovernmental Payments are compatible with the debt service requirements of all three Parties. The District and the County recognize that the amounts on Exhibit C -1 reflect in some years amounts that are greater than 12/96 of the expected Regional Tax Revenues in those years, and in other years reflect amounts that are less than 12/96 of the expected Regional Tax Revenues; however, the District is willing to allocate more than 12/96 in certain years to accommodate the County in structuring the County Bonds, recognizing that less than 12/96 may be allocated to the County in other years. The County may use and apply the Fair & Expo Center Payments for any purpose in support of the Fair & Expo Center Project, including the design, acquisition, construction, equipping, financing, operating, maintaining, repairing, remodeling, and re- equipping of the Fair -& Expo Center Project. The District shall make the Fair & Expo Center Payments solely from Regional Tax Revenues available for that purpose in accordance with the provisions of Section 2.7 of this Agreement. The County and the District recognize and agree that the actual amount of Regional Tax Revenues available to the District to make Fair & Expo Center Payments on any particular date set forth in the Intergovernmental Payment Schedule may differ from the amount required to be paid on that date. So long as other District revenues, together with Regional Tax Revenues (if and to the extent any are required), 0 pledged to the District Bonds and other obligations of the District issued on a parity with the District Bonds are sufficient to pay and secure the District Bonds and such parity obligations in accordance with the District Bond Resolution or other authorizing resolution, the District agrees to allocate and use Regional Tax Revenues to make Fair & Expo Payments when due in an amount equal to the lesser of the amounts shown on the Intergovernmental Payment Schedule or 12 /19's -of the Regional Tax Revenues available to the District on the applicable due date; provided, that any resulting shortfall in Regional Tax Revenues available to be allocated and used by the District to fully satisfy debt service requirements of the District Bonds shall be an Arena Reimbursement Obligation. If the District does not have Regional Tax Revenues sufficient to pay Fair & Expo Center Payments in full on any date as set forth in the Intergovernmental Payment Schedule, the District shall remain obligated to pay the remaining balance due but not paid on that date (the "Fair & Expo Center Payment shortfall "), which shall be paid to the County on the next scheduled payment date from Regional Tax Revenues available to the District for that purpose in accordance with the provisions of Section 2.7 of this Agreement, plus an additional compensatory payment equal to the amount of interest that the County would have earned if the amount of the Fair & Expo Center Payment shortfall had been invested in the County's Local Government Investment Pool at the Intergovernmental Rate from its originally scheduled payment date until the Fair & Expo Payment shortfall is paid in full. All unpaid Fair &. Expo Center Payments shall be paid in full no later than December 31, 2033, and the District pledges to use all means and resources then legally available to the District to make that payment when due. 3.6 County Insurance for the Fair & Expo Center Project. The County agrees to acquire and maintain insurance in form and amounts as are consistent with the coverage of 503666:0.04 -13- comparable Fair & Expo Center facilities and undertakings related to said facilities as contemplated under this Agreement and to name the District as an additional named insured thereunder. smsss20.W SECTION 4 DEVELOPMENT AND FINANCING OF THE MIRABEAU POINT PROJECT 4.1 Development of the Mirabeau Point Project The Valley City, on behalf and for the benefit of the Valley City and the District, shall commence construction of the Mirabeau Point Project before January 1, 2004. The Valley City, on behalf and for the benefit of the Valley City and the District, shall be the lead agency with the primary responsibility for the development of the Mirabeau Point Project as a "regional center" (as defined by RCW 35.57.020) and "multi- purpose community center" (as defined by RCW 35.59.010), and shall finance, acquire, design, construct, own, operate and maintain the Mirabeau Point Project, and otherwise administer its development and operation, for the benefit of and in cooperation with the District, all subject to the limitations set forth herein. 4.2 Timeline for Development of Mirabeau Point Project The Valley City, on behalf and for the benefit of the Valley City and the District, shall commence construction of the Mirabeau Point Project before January 1, 2004. The Mirabeau Point Project is expected to be completed and placed in service on or before January 1, 2005. The estimated timeline for financing and construction of the Mirabeau Point Project is set forth in Exhibit B. The Parties acknowledge that the dates set forth in Exhibit B are target dates for action by the Valley City. However, the date of commencement of construction is critical to the financing of the Mirabeau Point Project and achieving the development schedule for the construction of the Mirabeau Point Project. The failure of the Valley City to meet the dates set forth in the timeline for financing and construction of the Mirabeau Point Project shall have no effect on the other provisions of this Agreement, provided that construction of the Mirabeau Point Project commences before January 1, 2004, as evidenced by a certificate executed by the City Manager of the Valley City and the architect for the Mirabeau Point Project delivered to the District stating facts and circumstances clearly demonstrating that such construction has commenced. If the Valley City fails to commence construction of the Mirabeau Point Project before January 1, 2004, the District's obligation to make the Mirabeau Point Payments pursuant to this Agreement shall terminate. 4.3 Site Acquisition. Development and Ownership of Mirabeau Point Project. 4.3.1 The Valley City is proceeding to acquire from the County all real property necessary to carry out the Mirabeau Point Project, and will have acquired ownership of such real property prior to commencement of construction of the Mirabeau Point Project. 4.3.2 The Valley City, on behalf and for the benefit of the Valley City and the District, shall acquire the approvals necessary and shall take such other actions as may be required to enable the site to be suitable for use as the Mirabeau Point Project. -14- 4.3.3 The Valley City shall periodically provide reports to the District on the design, construction and operation of the Mirabeau Point Project, at least quarterly during construction and at least annually thereafter. 4.3.4 The Valley City shall have full and complete control over the development the Mirabeau Point Project, and shall own and operate the Mirabeau Point Project for and on behalf of itself and the District. The Valley City shall have full and complete control over the operation and management of the Mirabeau Point Project, subject to the terms of this Agreement. All of the District's legally cognizable ownership interest, if any, in the Mirabeau Point Project shall terminate and revert to the Valley City upon the termination of the District's obligation to make Mirabeau Point Payments. 4.3.5 The District and the Valley City each find that the Mirabeau Point Project is a viable project that is likely to commence construction before January], 2004. The Valley City agrees that the general public shall have access to Mirabcau Point Project services, which are expected to provide a regional benefit to the residents of the District and the Valley City. 4.4 Financing of Mirabeau Point Project. The Valley City shall issue the Valley City Bonds to finance a portion of the cost of the Mirabeau Point Project. The Valley City Bonds shall be payable from and secured by a pledge of the full faith and credit of the Valley City (within the constitutional and statutory tax limitations provided by law without a vote of the electors of the Valley City); shall be payable on June 1 (interest only) and December 1 (principal and interest) of each year; shall finally mature no later than June 1, 2033; and shall have such other terms as provided in the Valley City Bond Ordinance. The District acknowledges and agrees that, although the Valley City Bonds will be limited tax general obligation bonds pledging the full faith and credit of the Valley City (within the constitutional and statutory tax limitations provided by law without a vote of the electors of the Valley City), the Valley City may at its sole option (hut is not required to) apply the proceeds of the Mirabeau Point Payments to the payment of the Valley City Bonds. The Valley City Bonds and any disclosure documents related to the Valley City Bonds shall contain the following statement (or substantially similar language) "The [Valley City Bonds) are not obligations of the Spokane Public Facilities District, Spokane County, the City of Spokane, the State of Washington or any other political subdivision of the State of Washington other than the City. All liabilities incurred by the City with respect to the [Valley City Bonds] shall be satisfied exclusively from the tax revenues, credit and other legally available sources of the City and no owner of the [Valley City Bonds) or other person shall have any right of action against or recourse to the Spokane Public Facilities District, Spokane County, the City of Spokane, the State of Washington or any other political subdivision of the State of Washington, or any of their respective assets, credit, revenues or services on account of any debts, obligations or liabilities relating to the [Valley City Bonds]." Furthermore, the District acknowledges that its obligation to make the Mirabeau Point Payments as required by Section 4.5 of this Agreement and described in the Intergovernmental Payment Schedule may be material to the offer and sale of the Valley City Bonds, and may be disclosed to potential purchasers and purchasers of those Valley City Bonds. At the City's request, the District will make an appropriate continuing disclosure undertaking in respect of the Valley City Bonds to the same extent as if the District were treated as an "obligated person" (within the meaning of SEC Rule 15c2 -12) in respect of the Valley City Bonds. The Valley City shall covenant in the Valley City 50155620.04 -15- Bond Resolution to maintain the tax exemption for the Valley City Bonds, and shall provide to the other Parties copies of annual financial information and operating data and any material event notices filed by the Valley City with NRMSIRs pursuant to its continuing disclosure undertaking under SEC Rule 15c2 -12 in respect of the Valley City Bonds. 4.5 Mirabeau Point Payments. The District shall make Mirabeau Point Payments to the Valley City in respect of the Mirabeau Point Project on the payment dates and in the amounts set forth in the Intergovernmental Payment Schedule attached as Exhibit C -2 to this Agreement. The Mirabeau Point Payments shown on the Intergovernmental Payment Schedule reflect amounts corresponding to expected debt service on the Valley City Bonds. Upon the issuance of the Valley City Bonds, Exhibit C -2 shall be replaced with an adjusted schedule approved by the District, acting reasonably, to ensure, assuming Intergovernmental Payments to the County and the Valley City are used for debt service purposes, that the amounts of the Intergovernmental Payments are compatible with the debt service requirements of all three Parties. The District and the Valley City recognize that the amounts on Exhibit C -2 reflect in some years amounts that are greater than 7/96 of the expected Regional Tax Revenues in those years, and in other years reflect amounts that are less than 7/96 of the expected Regional Tax Revenues; however, the District is willing to allocate more than 7/96 in certain years to accommodate the Valley City in structuring the County Bonds, recognizing that less than 7/96 may be allocated to the Valley City in other years. The Valley City may use and apply the Mirabeau Point Payments for any purpose in support of the Mirabeau Point Project, including the design, acquisition, construction, equipping, financing, operating, maintaining, repairing, remodeling, and reequipping of the Mirabeau Point Project. The District shall make the Mirabeau Point Payments solely from Regional Tax Revenues available for that purpose in accordance with the provisions of Section 2.7 of this Agreement. The Valley City and the District recognize and agree that the actual amount of Regional Tax Revenues available to the District to make Mirabeau Point Payments on any particular date set forth in the Intergovernmental Payment Schedule may differ from the amount required to be paid on that date. So long as other District revenues, together with Regional Tax Revenues (if and to the extent any are required), pledged to the District Bonds and other obligations of the District issued on a parity with the District Bonds are sufficient to pay and secure the District Bonds and such parity obligations in accordance with the District Bond Resolution or other authorizing resolution, the District agrees to allocate and use Regional Tax Revenues to make Mirabeau Point Payments when due in an amount equal to the lesser of the amounts shown on the Intergovernmental Payment Schedule or 7/19's of the Regional Tax Revenues available to the District on the applicable due date; provided, that any resulting shortfall in Regional Tax Revenues available to be allocated and used by the District to fully satisfy debt service requirements of the District Bonds shall be an Arena Reimbursement Obligation. If the District does not have Regional Tax Revenues sufficient to pay Mirabeau Point Payments in full on any date as set forth in the Intergovernmental Pa }anent Schedule, the District shall remain obligated to pay the remaining balance due but not paid on that date (the "Mirabeau Point Payment shortfall "), which shall be paid to the Valley City on the next scheduled payment date from Regional Tax Revenues available to the District for that purpose in accordance with the provisions of Section 2.7 of this Agreement, plus an additional compensatory payment equal to the amount of interest that the Valley City would have earned if the amount of the Mirabeau Point Payment shortfall had been invested in the County's Local Government Investment Pool at the Intergovernmental Rate from its originally scheduled 503&5120.04 -16- payment date until the Mirabeau Point Payment shortfall is paid in full. All unpaid Mirabeau Point Payments shall be paid in full no later than December 31, 2033, and the District pledges to use all means and resources then legally available to the District to make that payment when due. 4.6 Valley City Insurance for the Mirabeau Point Project The Valley City agrees to acquire and maintain insurance in form and amounts as are consistent with the coverage of comparable regional center facilities and undertakings related to said facilities as contemplated under this Agreement and to name the District as an additional named insured thereunder. SECTION 5 MISCELLANEOUS 5.1 Administrator of Joint Undertaking. For purposes of RCW 39.34.030(4)(a), the Executive Director of the District shall serve as the administrator responsible for administering the joint and cooperative undertaking among the Parties to this Agreement. There shall be no "joint board" as that term is used in RCW 39.34.030(4)(a). 5.2 Supplemental Agreements. The Parties agree to complete and execute all supplemental documents necessary or appropriate to fully implement the terms of this Agreement. 5.3 Effectiveness of Agreement. This Agreement shall be effective with respect to each Party upon execution by that Party and filing of the executed Agreement with the Spokane County Auditor as required by the provisions of RCW 39.34.040. This Agreement and shall continue in full force and effect until such time as all of the District Bonds and other obligations issued or incurred by the District in connection with the development of the Regional Center Projects, the County Bonds and the Valley City Bonds, are fully paid, retired and satisfied. 5.4 Assir'nment. No Party shall assign any of its rights or delegate any of its duties under this Agreement without the express written approval of all other Parties. 5.5 Third Party Beneficiaries. Except as expressly provided by this Agreement, the Parties shall not be obligated or liable by virtue of this Agreement to any third party. The Parties may amend this Agreement by mutual agreement without the consent of any other third party or the holders of the District Bonds, the County Bonds or the Valley City Bonds;provided, however that while the District Bonds are Outstanding, no amendment by the Parties shall impair or diminish the County's limited guaranty of the District Bonds hereunder, and while the County Bonds or the Valley City Bonds are Outstanding, no amendment by the Parties shall impair or diminish the District's obligations to make Intergovernmental Payment hereunder. 5.6 Actions Contesting Agreement. 5.6.1 Each Party shall appear and defend any action or legal proceeding brought to determine or contest: (i) the validity of this Agreement; (ii) the legal authority of any Party to undertake the activities contemplated by this Agreement; or (iii) the legal authority to perform any of the Parties' respective obligations under this Agreement. Each party shall be responsible for its own expenses including without limitation legal expenses, in connection with any such proceeding. 50386810.04 -17- 5.6.2 If all Parties are not named as parties to the action, the Party named shall give all other Parties prompt notice of the action and provide the all Parties with an opportunity to intervene. Each Party shall bear any costs and expenses taxed by the court against it. 5.7 Entire Agreement, Amendments and Waiver. This Agreement contains the entire agreement and understanding of the Parties with respect to the subject matter hereof, and supersedes all prior or contemporaneous oral or written understandings, agreements, promises, or other undertakings by and among the Parties. This Agreement may not be modified or amended, nor any rights thereunder waived, other than by a written instrument executed by all Parties, nor shall any waiver of any right or remedy of any Party be valid unless in writing and signed by such Party. No course of dealing by or among the Parties or any delay in exercising any rights hereunder shall operate as a waiver of any rights of any Party. Nothing herein shall be deemed to amend or supersede, or be deemed amended or superseded by, any provision of any other agreement between the Parties with respect to the Regional Center Projects. 5.8 Governing Law: Venue. This Agreement shall be governed by and construed in accordance with the laws of the State. The venue of any suit or arbitration arising under this Agreement shall be in Spokane County, Washington, and if a suit, in Spokane County Superior Court. 5.9 Captions. The article and section captions used in this Agreement are for convenience only and shall not control and affect the meaning or construction of any of the provisions of this Agreement. 5.10 Notices. All notices or other communications given hereunder shall be deemed given on: (i) the day such notices or other communications are received when sent by personal delivery; or (ii) the third day following the day on which the same have been mailed by first- class mail, postage prepaid, addressed to the Parties at the addresses set forth below for the Parties, or at such other address as any Party shall from time to time designaa by notice in writing to the Parties: COUNTY: 58386329.04 Spokane County Chair of the Board of County Commissioners West 1116 .Broadway Spokane, WA 99260 Copy to: - Office of the County Prosecuting Attorney Attn: Chief Civil Deputy 1115 W. Broadway Spokane, WA 99260 -0270 FAX: (509) 477 -3672 DISTRICT: CITY OF SPOKANE VALLEY: 503s6s?0.o4 5.11 Specific Approvals. Spokane Public Facilities District Chair of the Board of Directors 720 West Mallon Avenue Spokane, WA 99201 Copy to: Spokane Public Facilities District Executive Director /General Manager 720 West Mallon Avenue Spokane, WA 99201 FAX: (509) 324 -7050 City of Spokane Valley 11707 E. Sprague Avenue, Suite 106 Spokane Valley, WA 99206 Copies to: 5.11.2 Unless specifically otherwise provided for herein, all consents, approvals and other decisions of the District hereunder shall be binding only if made in writing and approved by resolution of the District's Board. No approval, consent, or decision of the District for purposes of this Agreement shall be effective for purposes of any other agreement or instrument to which the District is a party or beneficiary, or for any regulatory or other purpose. -19- City of Spokane Valley City Attorney Mr. Stanley Schwartz 422 W. Riverside Drive, Suite 1100 Spokane, WA 99201 City of. Spokane Valley City Manager 11707 E. Sprague Avenue, Suite 106 Spokane Valley, WA 99206 Such names and addresses may be changed by written notice pursuant to this provision. 5.11.1 Unless specifically otherwise provided for herein, all consents, approvals and other decisions of the County hereunder shall be binding only if made in writing and approved by resolution of the Board of Spokane County Commissioners. No approval, consent, or decision of the County for purposes of this Agreement shall be effective for purposes of any other agreement or instrument to which the County is a party or beneficiary, or for any regulatory or other purpose. 5.11.3 Unless specifically otherwise provided for herein, all consents, approvals and other decisions of the Valley City hereunder shall be binding only if made in writing and approved by ordinance of the Council of Valley City. No approval, consent, or decision of the Valley City for purposes of this Agreement shall be effective for purposes of any other agreement or instrument to which the Valley City is a party or beneficiary, or for any regulatory or other purpose. 5.12 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without affecting or invalidating the remainder of this Agreement. 5.13 Counterparts. This Agreement may be executed in counterparts, and each such counterpart shall be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement. 5.14 Time is of the Essence. It is hereby agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Agreement. 503E5E29.04 -20- IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized officers and representatives this day of , 2003. COUNTY: SPOKANE COUNTY, WASHINGTON BY THE BOARD OF COMMISSIONERS SPOKANE COUNTY, WASHINGTON John Roskelley, Chair Phillip D. Harris, Vice-Chair M. Kate McCaslin, Commissioner ATTEST: Daniela Erickson, Deputy Clerk of the Board of County Commissioners DISTRICT: SPOKANE COUNTY .PUBLIC FACILITIES DISTRICT Bill Williams, Jr., Chair Trish McFarland, Vice-Chair Shaun Cross, Director Rick LaFleur, Director Erik E, Skaggs, Director ATTEST: Kevin J. Twohig, Executive Director SU396824A4 VALLEY CITY: CITY OF SPOKANE VALLEY, WASHINGTON Michael DeVlemine, Mayor ATTEST: Christine Bainbridge, City Clerk 5N5552U.147 -23- EXHIBIT A REGIONAL CENTER PROJECT DESCRIPTIONS A -1 CONVENTION CENTER PROJECT Acquisition of an interest in, construction of improvements to and the expansion of the real property located in the City of Spokane, commonly known as the Spokane Convention Center, including without limitation, an expanded convention center with approximately 100,000 square feet of exhibit space, 30,000 square feet of ballroom space and 37,5000 square feet of meeting space, together with contiguous parking facilities consistent of approximately 800 parking spaces. The Convention Center Project includes capital improvements and remodeling of the Spokane Convention Center, the Spokane Opera House and the Washington State International Agricultural Trade Center. Construction of improvements to real property located in Spokane County commonly known as the Spokane County Fair & Exposition Center, including, without limitation: the reconstruction of grandstands in order to accommodate 5,000 persons; the construction; improvement and expansion of meeting facilities; the installation of new roofing, heating and air conditioning systems; a food court expansion; and other capital improvements. Construction of improvements to real property located in the City of Spokane Valley commonly known as Mirabeau Point, including without limitation, an approximately 48,000 square foot multi - purpose facility including a cultural and performing arts center, a conference center and a senior and community center. A -2 FAIR & EXPO CENTER PROJECT A -3 MIRABEAU POINT PROJECT A -1 EX H:CI3rT B EXPECTED TIMELINES FOR FINANCING AND CONSTRUCTION OF THE REGIONAL CENTER PROJECTS B -1 CONVENTION CENTER PROJECT 5/02 —12/03 Property Acquisition 7/03 — 9/04 Design Development and Construction Documents 12/03 Commence Construction 12/03 — 10/06 Construction 8/06 Move -in 2/03 — 1 /04 Design Development 2/03 Commence Construction 2/03 —1/05 Construction 8/03 Construction of Grandstand Completed 1/05 Completion of All Construction 11 /02 -10/03 Design Development 12/03 Commence Construction 12/03 -4/05 Construction 4/05 Completion of Construction Sa3ase±oaa B -2 FAIR & EXPO CENTER PROJECT B -3 M1RAB EA U POINT PROJECT 13-1 SASB6820 O4 EXHIBIT C C -1 FAIR & EXPO CENTER PAYMENTS Semiannual Semiannual Date Payment Date Payment - 12 /01 /03 245,860.59 06/01/19 267,931.25 06/01/04 292,500.00 12/01/19 562,931.25 12/01/04 292,500.00 06/01 /20 260,931.25 06/01/05 292,500.00 12/01/20 620,931.25 12/01/05 297,500.00 06/01/21 252,381.25 06/01/06 292,425.00 12/01/21 682,381.25 12/01/06 317,425.00 06/01/22 242,156.25 06/01/07 292,050.00 12/01/22 742,156.25 12/01/07 322,050.00 06/01/23 230,256.25 06/01/08 291,625.00 . 12/01/23 815,256.25 12/01/08 331,625.00 06/01/24 216,343.75 06/01 /09 290,975.00 12/01/24 881,343.75 12/01/09 340,975.00 06/01/25 199,518.75 06 /01 /10 290,125.00 12/01/25 949,518.75 12/01/10 350,125.00 06/01/26 180,543.75 06/01 /11 288,925.00 12/01/26 1,025,543.75 12/01/11 363,925.00 06/01/27 159,165.63 06/01/12 287,556.25 12/01 /27 909,1 65.63 12/01/12 372,556.25 06/01/28 140,190.63 06/01/13 285,681.25 12/01/28 910,190.63 12/01/13 390,681.25 06/01/29 120,709.38 06/01/14 283,581.25 12/01/29 985,709.38 12/01/14 398,581.25 06/01/30 98,821.88 06/01/15 281,443.75 12/01/30 1,043,821.88 12/01/15 411,443.75 06/01/31 74,912.50 06/01/16 278,931.25 12/01/31 1,119,912.50 12/01/16 428,931.25 06/01/32 48,475.00 06/01/17 275,931.25 12/01/32 1,203,475.00 12/01/17 440,931.25 06/01/33 19,250.00 06/01/18 272,631.25 12/01/33 789,250.00 12/01/18 507,631.25 C -1 503868:0.04 Date C -2 MIRABEAU POINT PAYMENTS Semiannual Payment 12/01/03 06/01/19 06/0 12/01/19 12/01/04 06/01/20 06/01/05 12/01/20 12/01/05 06/01/21 06/01 /06 12/01 /21 12/01/06 06/01/22 06/01 /07 12/01 /22 12/01/07 06/01/23 06/01/08 12/01/23 12/01/08 06/01/24 06/01/09 12/01/24 12/01/09 06/01/25 06/01/10 12/01/25 12/01/10 06/01/26 06/01/1 1 12/01/26 12/01/11 06/01/27 06/01/12 12/01/27 12/01/12 06/01/28 06/01/13 12/01/28 12/01/13 06/01/29 06/01/14 12/01/29 . 12/01 /14 06/01 /30 06/01/15 12/01/30 12/01/15 06/01 /31 06/01 /16 12/01 /31 12/01 /16 06/01 /32 06/01/17 12/01/32 12/01/17 06/01/33 06/01/18 12/01/33 12/01/18 C - 2 Date Semiannual Pavment CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 3, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business x new business ❑ public hearing ❑ information ❑ admin. report x pending legislation AGENDA ITEM TITLE: Ordinance amending 2003 budget GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: This item was discussed at the Council Study Session on August 5, 2003. The City Council directed staff to move forward with these budget amendments. BACKGROUND: Finance Director Ken Thompson presented amendments to the 2003 budget to the City Council on August 5. The size and number of amendments is likely greater in this first year of incorporation for the City, than it will be in later years. Exhibit A itemizes these amendments which are primarily in the General Fund. One amendment amends the Hotel /Motel Fund (tourism promotion) and one amendment creates a budget for CenterPlace at Mirabeau Point. I have also added the Project Access funding request ($5,000) presented to the Council on September 2, 2003. Interim loans, bond sale proceeds, program income and room tax will be used to pay these costs. OPTIONS: State law requires a balanced budget. Thus, the only viable option is to amend the original 2003 budget. The City could hold all amendments until the end of the year and process all amendments at that time. However, that approach would delay timely accounting and reporting until year end as well. RECOMMENDED ACTION OR MOTION: A council motion to consider the first reading of the Ordinance is recommended. BUDGET /FINANCIAL IMPACTS: These amendments will balance the City Budget for 2003. Interim loans will need to be repaid with interest during the next few years. STAFF CONTACT: Ken Thompson, Finance & Administrative Services Director ATTACHMENTS The proposed Ordinance and Exhibit °A° are enclosed CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 62 PASSED BY THE CITY COUNCIL ON MARCH 27, 2003 AND ENTITLED "AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON ADOPTING A BUDGET FOR THE PERIOD OF MARCH 31, 2003 THROUGH DECEMBER 31, 2003 APPROPRIATING FUNDS AND ESTABLISHING SALARY SCITEDULES FOR ESTABLISHED POSITIONS." WHEREAS, subsequent to the adoption of the annual budget, it has become necessary to make changes by adding appropriations and transferring funds in order to properly perform various City functions, services and activities; WHEREAS, the budget changes set forth in this Ordinance could not have been reasonably anticipated or known when the annual budget was passed by the City Council; and WHEREAS, the City Council has determined that the best interests of the City are served by amending the adopted budget as set forth herein. NOW THEREFORE, The City Council_ of the City of Spokane Valley, Washington do ordain as follows: Section 1. Budrzct Amendment. The Budget for the nine months ending December 31, 2003, and each item, appropriation, and fund are hereby revised as follows. The following budget amendments are made: A. The General Fund of the 2003 budget is amended to provide for an additional appropriation in the amount of $611,500, funded through program income and a loan as set forth on Exhibit "A." B. The Fiotel/Motel Fund of the 2003 budget is amended to provide for an additional appropriation in the amount of $190,000 funded through hotel /motel room tax. C. There is hereby established in the City treasury a fund known and designated as the "Mirabeau — CenterPlace Capital Project Fund" for the purpose of providing funds for construction of a regional conference /special events center. The 2003 City budget is amended to provide an appropriation in the amount of $300,000 funded through a Public Facilities District grant and bond sale proceeds. Ord.15.10.09/03/03 - 1 C:11)ocuments and SettingslcbainbridgclLocal Settings\Temporary Internet Files\OLK2E1Budgct Amended Ordinance No 62.doc 1. General $13,892,900 $14,504,400 2. Street 3.941,315 3,941,315 1 Arterial Street 400,000 400,000 4. 1- Iotel/Motel 10,000 200,000 5. County City Loan 50,500 50,500 6. Capital Projects 550,000 550,000 7. Special Capital Projects 550,000 550,000 8. Street Capital Projects 1,500,000 1,500,000 9. Sewer 1,000,000 1,000,000 10. Stormwater Management 555,000 555,000 11. Equipment Rental & Replacement 70,525 70,525 12. Mirabeau — CenterPlace -0- 300,000 Total $22,520,240 S23,621,740 For purposes of these budget amendments, Exhibit "A" is attached hereto and incorporated by this reference as though set forth in full. Section 2. Funds Ap_propriated. To facilitate the above budget amendments from the estimated revenues, including beginning fund balances for each separate fund, the appropriations and the aggregate total for all funds combined for the period March 31 through December 31 are set forth in summary form. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent . jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five (5) days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. Passed by the City Council of the City of Spokane Valley this • day of 2003. ATTEST: Chris Bainbridge, City Clerk APPROVED AS TO FORi\4: Stanley M. Schwartz, Interim City Attorney Date of Publication: Ordinance BEGINNING AMENDED APPROJ'RIATION APPROPRIATION Michael DeVleming, Mayor Ord. l 5.1 0.09103/03 - 2 C:1Doeuments and Settingslebainbridgc\Lneal SettingsV1'cmporary Internet Files lOLK2l \Nudget Amended Ordinance No 62,dttc Fund Purpose Amount Funding Source Start -up costs: General Microflex — Sales Tax $ 28,000 Loan proceeds General Emergency Management Services 36,000 Loan proceeds General Lease/Improvements 70,000 Loan proceeds General Web Site 20,000 Loan proceeds General Prothman Costs 26,000 Loan proceeds General Start-.up Supplies 7,000 Loan proceeds General Road Obstruction Program 70,000 Loan proceeds & Program income General Special Attorney 40,000 Loan proceeds General Public Safety Vehicle 28,000 Loan proceeds General Interim Positions (3) 40,500 Loan proceeds General Traffic Engineering — Manuals/Ilandbooks 1,500 Loan proceeds Software — Synchro 3,000 Loan proceeds General Technology — Computers, Network & Consulting 194,000 Loan proceeds General Inspector Manuals & Certification 10,000 Loan proceeds G eneral Consultants — Personnel Policies 20,000 Loan proceeds General Council Memberships, Registrations, & Travel 12,500 Loan proceeds General Project Access 5.000 Other: I- lotel/Motel Capital Project Tourism Promotion Mirabeau — CcnterPlacc EXHIBIT "A" City of Spokane Valley 2003 Budget Amendments August 5, 2003 $0-1,5_00. 5190,000 Room tax $300,000 Bond proceeds September 2, 2003 Mr. Mayor and Members of the Council: This past Friday, August 29 2003, I had the opportunity to meet with my hotel colleagues to review the proposed room tax allocation. By best estimate, the hotels represented at this meeting have contributed approximately 82% of the 2% bed tax fund. Our purpose in meeting was to discuss our concerns with the current proposal for spending the bed tax fund and agree upon our common interest in short term returns on investment from those funds. Our recommendation is that the current proposal be amended to reflect the following: 1. The total amount available in the fund should be reflected as $229,000.00 vs. $200,000.00. 2. A reserve amount should be 10% of anticipated revenue. The hospitality industry is in trouble and the monies we generate need to be aggressively marketed to insure room nights rather than sitting in reserve. 3. The Valley hoteliers wish to appropriate $127,660.00 to the Spokane Convention and Visitors Bureau of which $10,000.00 is to be dedicated to the design and publishing of a Spokane Valley page in the Washington Visitors Guide and the remaining $17,500 is to be used for design, production and distribution of Fairgrounds marketing materials. 4. The Valley hoteliers also wish to appropriate $78,440.00 to the Spokane Regional Sports Commission. $58,440.00 will be used to fund their business plan and the remaining $20,000.00 will be earmarked for the completion of the Plantes Ferry project. We feel that our recommendation best benefits the industry by driving tourism into the City of Spokane Valley. It is our expectation that you, as the good stewards of this fund, will consider our concerns and act on our recommendations as to how the monies should be invested. Yours trul Jeff Fox General Manager MirabeauPark HOTEL www.mirabeauparkhotel.com 1100 N. Sullivan Road *Spokane Valley, WA 99037 0509 -924 -9000 *Fax 509 - 922 -4965 Lodging Taxes Businesses providing lodging for less than 30 days must report transient rental income under Lodging Taxes on page 2 of the Combined Excise Tax Return. Examples include hotels, motels, bed and breakfasts, vacation rentals, trailer camps, RV parks, and tent campgrounds. This allows cities and counties that impose the transient rental tax to receive a distribution from the state portion of the retail sales tax. It is not an additional tax. Special hotel /motel taxes may apply to lodging charges. The local rates vary by location (see column ioSpecl HtIfMtIIS on the following rate chart). This tax is reported on page 2 of the tax return under Lodging Taxes. The gross taxable income reported under the special hotel /motel tax section should agree with the gross transient rental income reported for each location. (2) Spe Hotel/Motel and Convention and Trade Center taxes are in addition to state and local sales tax for businesses that provide lodging. Applicant Request Range Proposed Grant Committee Recommendation $200,000 available with all voting Conflicts abstaining Convention and Visitors Bureau $150,000 - 200,000 $63,200 $58,500 Valley Fest $15,000- 10,724 5,600 4,500 Spokane Wine Association $2535 -? o.00 YMCA Skate Park $25,000- 50,000 18,000 18,000 Valley Soccer Concession stand $96,642 -? 24,800 24,800 Fair & Expo marketing $20,000 -? 17,500 17,500 Regional Sports Commission • $100,000- 120,000 52,200 47,300 Arts Commission study $10,000 -? 0 Valley Legacy Foundation- museum $27,000 - 40,000 8,700 5,900 Tourism Guide AD 10,000 10,000 $200,000 $186,500 Sport Horse Breeders • $1980 -100 Sports USA facility $103,000 -? Splash Down expansion $230,000 -? legal issue Spokane Vacations.com $28,000- 39,000 legal issue • Centennial Trail $12,480 - 23,480 Spokane Polo Club $25,300 -100 Spokane Symphony $20,000- 10,000 . Armed Forces Aerospace Museum $3327.20- 2530.51 Latah Creek sign $20,000 -? $12,500 -6250 legal issue Senior Wellness Conference fi is The New City Guide ka .� • to- a flat fee designed to cover the costs of implementing the program. A revenue- raising business license scheme generally involves different fees for different classes of businesses. Such fees may be based, for example, on the type of business, on the number of employees, or on the square footage of the business facility. :.;•:Utility business and occupation taxes. Utility taxes are levied on the gross operating •::-•revenues that public and private utilities earn from operations within a city. Utilities on which • these taxes may be levied include electric, water, sewer, solid waste, stormwater, gas, telephone, %. cable TV, and steam. Taxes on some of these types of utilities are subject to a statutory ; maximum 6 percent rate, unless a higher rate is approved by the voters. Taxes on electric, gas, :and telephone utilities cannot take effect until . at least 60 days after the ordinance is passed. The. n oimposition of this tax for the fist time may be subject to a referendum procedure.' l k,� Lodging (hotel- motel) tax. Most cities may Impose a bask 2 percent tax on all charges ifiuma for furnishing lodging at hotels, motels, and similar establishments for a continuous period of IF' less than one month. RCW 67.28.180(1). When this tax is imposed, the state sales tax decreases by a like amount, so tourists and other lodgers experience no increase as -a result of this tax. Most •cities may also impose an additional 2 percent. for a total of 4 percent, though this • additional tax is not credited against the state sales tax. RCW 67.28.181(1). .Before a city with a population over 5,000 may imposea lodging tax, it must establish a "lodging . ax advisory committee. RCW 67.28.1817. A proposal to impose a new lodging tax must be submitted to the lodging tax advisory committee for review and comment at least 45 days before it is to become effective. Presumably, an interim council may establish a committee prior to the fficial incorporation date, so that the tax can be made to -go into effect upon the official incorporation date. Revenues from this tax may be used only to pay for tourist promotion and.the acquisition and /or Operation of "tourism- related facilities." RCW 67.28.1815. See A Revenue Guide for ,,.Washington Cities and Towns, MRSC Report No. 45, (August 1999), at pages 18 -22, for a detailed discussion of the lodging tax, the lodging tax advisory committee , and the permissible uses for the revenues from this tax. This tax is remitted to the city by the state on a monthly basis. The Department of Revenue needs at least 45 days to notify taxpayers of a new tax, rate change, or change in recipient of the tax, and such a change must be effective the first day of a month. Therefore, if the council passes • an ordinance effective the first of the month after incorporation, the first revenue will be received five months later. For example, if a city incorporates on August 31 and passes a lodging tax ordinance effective September 1, the DOR will begin collecting on November 1. Taxes collected during November are remitted to DOR on December 25 and paid to cities,at nd of :Ja a � x, Gambling tax. A city that decides to allow gambling activities within its borders may impose a tax on gambling revenues. The maximum tax for amusement games is 2 percent of gross receipts less the amount awarded as prizes. For bingo and raffles, it is 5 percent less the amount awarded as cash or merchandise prizes. For punch boards and pull -tabs, the maximum rate is, .[10■14 �- , - 129 _ION ' REGISTRATION .DI3A /OWNER NAME .3 600 004 476 TRAILER INNS INC 3 - - - - 600 139 078 PARKLANE MOTEL 3 . . • 600 206 527 . K '0 A OF• SPOKANE • 3 3 3 . 601 416 21 SPOKANE SUPER 8 MOTEL _ .. . 3 3 . 601 621 163 RED TOP -MOTEL 3 601 650 191 • -,MAPLE TREE MOTEL Yx R V:'CORP 3 601 651 207 EASTGATE MOTEL 3 r - - =; 601 87.0..391 . - QUALITY INN VALL SUITES - - °' °- • 3 . 60i 872 183 -. - .COMFORT INN - • 3 TE 00/19/2003 TRANSIENT RENTAL INCOME • • TAXPAYER DETAIL REPORT FOR 3213 SPOKANE VALLEY CITY FOR AUG 2003 REAL DISTRIBUTION 3 S s S T A T E O F W A S H I N G T O N -- D E P T O F R E V'E r 600 646 146 MOTEL 6 OPERATING LIMITED PARTNERSHIP 600650 065 • PARK' LANE R V PARK 601 343 894 ALPINE MOTEL & .RV PARK INC 601 343 894 ALPINE MOTEL & RV PARK INC 601 416 212 SPOKANE SUPER 8 MOTEL 601 578 315 OXFORD SUITES 601 - 736.361 VALLEY HOSPITALITY .. :• 60 -- : 804, • 547 SULLI VAN :INN VESTMENTS .LLC • • 601 804 547 SULLIVAN INN VESTMENTS LLC 601 872 183. COMFORT INN 60 872 183 COMFORT INN 601 919 626 - BROADWAY INN & SUITES • 602 016'851 WOLFF.'CORPORATE HOUSING INC R Fi 06 c O6 c 06 c 06 "c 06 E 05 E 06 2 05 2 06 2 -— - 006 " 02 2 • _ 06 2' • 06 21 04 2i 06 2i 04 2( • 05 21 06 2( 06 2( 602 038 992 fIESIDENCE INN I37 MARRIDTT _ - 06 •C 602 258 549 BEST WESTERN PHEASANT HILL 06 2C Page 1 of 1 RCW 67.28.1817 Lodging tax advisory committee in large municipalities -- Submission of proposal for imposition of or change in tax or use -- Comments. (1) Before proposing imposition of a new tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter, a municipality with a population of five thousand or more shall establish a lodging tax advisory committee under this section. A lodging tax advisory committee shall consist of at least five members, appointed by the legislative body of the municipality, unless the municipality has a charter providing for a different appointment authority. The committee membership shall include: (a) At least two members who are representatives of businesses required to collect tax under this chapter; and (b) at least two members who are persons involved in activities authorized to be funded by revenue received under this chapter. Persons who are eligible for appointment under (a) of this subsection are not eligible for appointment under (b) of this subsection. Persons who are eligible for appointment under (b) of this subsection are not eligible for appointment under (a) of this subsection. Organizations representing businesses required to collect tax under this chapter, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations for membership on the committee. The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under this chapter. One member shall be an elected official of the municipality who shall serve as chair of the ' committee. An advisory committee for a county may include one nonvoting member who is an elected official of a city or town in the county. An ad committee for city or town may include one nonvoting member who is an elected official of the county in which the city or town is located. The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate. (2) Any municipality that proposes imposition of a tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter shall submit the proposal to the lodging tax advisory committee for review and•comment. The submission shall occur at least forty -five days before final action on or passage of the proposal by the municipality. The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long -term stability of the fund created under RCW 67.28.1815. Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the municipality from acting on the proposal. A municipality is not required to submit an amended proposal to an advisory committee under this section. [1998 c 35 § 3; 1997 c 452 § 5.] NOTES: Validation of taxes imposed and collected and actions takcn -- Effective date --1998 c 35: See notes following RCW 67.28.181. Intent -- Severability- -1.997 c 452: See notes following RCW 67.28.080. Savings -- 1997 c 452: See note following RCW 67.28.181.. ►�,.. „. „ -., rnxtozlnoilnA-70ionoion-rrrt R /R ('WO / ?nQ /lM:7O /')n 047 R /1A/1 n11: Page 1 of2 RCW 67.28.080 Definitions. • The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. (1) "Acquisition" includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations,issued or incurred for such purpose or purposes under this chapter. (2) "Municipality" means any county, city or town of the state of Washington. .(3) "Operation" includes, but is not limited to, operation, management, and marketing. (4) "Person" means the federal government or any agency thereof, the state or. any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual. d' (5) "Tourism" means economic activity resulting from tourists, which may include sales of overnight j'`� lodging, meals, tours gifts, or souvenirs. (6) "Tourism promotion" means activities and expenditures designed to increase tourism, including a ut not limited to advertising, publicizing, or otherwise distributing information for the purpose of ttracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion . agencies; and funding marketing of special events and festivals designed to attract tourists. (7) "Tourism - related facility" means real or tangible personal property with a usable life of three or more years, or constructed with'volnnteer labor, and used to support tourism, performing arts, or to accommodate tourist activities: • (8) "Tourist" means a person who travels from a place of residence to a different town, city, county, state, or country, for purposes of business, pleasure, recreation, education, arts, heritage, or. culture. [1997 c 452 § 2; 1991 c 357 § 1; 1967 c 236 § 1.] NOTES: Intent -1997 c 452: "The intent of this act is to provide uniform standards for local option excise taxation of lodging." [1997 c 452 § 1.] • Severability —1997 c 452: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1997 c 452 § 24.] Savings —1997 c 452: See note following RCW 67.28.181. Effective date, application -- 1991 c 357: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect after immediately [effect immediately (May 21, 1991)]. This act applies retroactively to all actions taken under chapter 67.28 RCW on or after January 1, 1990." [1991 c 357 § • ( To41no41n41" )noi1nTrrT /1? o pv..)roilnc1oi.)ri QhArmn1 The Spokesman - Review.com - Spokane allows $900,000 shift NEWS "Spokane "Idaho 'Valley • "Community ' Region "Nation ' World • Business • Sports ' Lifestyle ' Entertainment "Commentary ' Letters "Obituaries ■More topics ' Full story list • ■Nev,stracics "Archives EXTRA "pedal sections • Forums Steens only Weather IfTV listings • iMovie listings • For the record ADS "Special sections "'Classifieds ' Find a job ' Find a car ' Find a Horne • Apartments "•Classified Obituaries I•Pleeting place •Newspaper ads RHow to advertise S ITE MAP select..] ■ H ELP IIIIIAbout S -R.com U News tip ■ Feedback ■ Contact us • SR•jobs ■ Privacy policy DIE_ SPOKESMAN -REVI EWGOM SPOKANE Spokane allows S900,000 shift Lodging -tax funds transferring to PFD for center expansion Related stories 1rlike Praaer Staff writer The Spokane City Council on Monday voted to transfer $900,000 in lodging taxes to the Spokane Public Facilities District as part of-the • Convention Center expansion. AT A GLANCE WHAT'S NEXT Today, PFD board members are scheduled to meet to talk about the site being chosen for the new exhibit hall. The action was the latest in an ongoing effort to build a new 100,000 - square -foot exhibit hall under the guidance of the PFD. It is the same city- county agency that built and operates the Spokane Arena. Next Tuesday, the city will officially relinquish ownership of the existing Spokane Center to the PFD. The center will be remodeled and renovated as part of the expansion. Today, PFD board members are scheduled to meet to talk about the site being chosen for the new exhibit hall A selection announcement could be made when the board convenes at 4 p.m. in the Champions Room at Arena headquarters, 720 W. Mallon. PFD officials are considering three sites, including property east of the Doubletrec Hotel Spokane, the block south of the existing Spokane Center and a combination of the two. The east site has logistical advantages because it is larger and would more easily accommodate the new exhibit hall and parking. A larger hall is said to be critical for attracting national conventions, as well as convention spending, to the Lilac City. Downtown business interests have come out in favor of Tuesday, August 26, 2003 Printgr Friendly E -mail this story INTERACT Submit comment Feedback policy Read replies Shop ping Central Classifieds Find A Job Find An Automobile Find A Home Apartments Meeting Place Newspaper Ads How To Advertise Home Delivery Advertisement • falkliweatat Want to knew when "the game" is on? li's as easy as puttns inyour Cade_ Page 1 of 3 Auto Review Online View the'net.v and used inventory of the areas biggest car dealers. www.autoreviewonline.com Employment Hundreds of Local Job listings daily. Visit our online classifieds to find your next career. www.spokesmanreviev.t.com Real Estate Buying or selling your home? Looking for an apartment? You can find exactly what you are looking for in our Online Real Estate section. www.spokesmanrevlew.com The Spokesman- Review.cor - Spokane allows $900,000 shift Page 2 of 3 placing the exhibit hall on the block bounded by Washington, Main, Bernard and Spokane Falls. But using that property would force designers to put the exhibit hall lobby on a mezzanine level and to squish the ceiling at the hall's north'end to accommodate the mezzanine, officials said. It would also place loading bays on Main Avenue, creating potential conflicts between deliveries and downtown traffic. And a portion of public right -of -way along Bernard Street would be needed for the project. Business owners believe having the hall closer to restaiirants, shops and some lodging facilities is an advantage to getting•conventioners to go downtown. "You start moving east and you are going in the wrong direction," said City Council President Rob Higgins after an executive session briefing on site acquisition. He declined to say which site was preferred by the PFD board. . • �As'i t of - the deal, city lodgii g•ta o ati $90 0,00 0 - will be transferred to the PFD;. which: will use.them much the same way, city has used them. , Half-4)f that money -will gq for marketing work by the Spokane Convention and,Visitois Bureau and an' operati4 subsidy. to Center. .; ,,The city will keep $100,000 a year in lodging tax which total about $1 million annually Completion is expected.late in 2006. .. . The transfer will not change taxes being collected at hotels and motels in the city. Last week, the PFD board sold $77 million in bonds at an interest rate of 5.16 percent with maturities through 2033 to finance•planning, site acquisition, design and construction. A one -tenth of 1 percent sales tax and a 2 percent lodging tax initially approved for construction of the Arena will be part of the revenue for repaying the bonds. Voters a year ago approved .extending collections of li - - r�• /Jwtir,,, cnr,1rp rn nrPvri rum /r, we -ct ry asn941 itF= f1R2603&M= x1400465 9/1/2003 Revenues City Contract County. Contract City of Spokane Valley Membership Dues Other Private Revenue Total Revenues Cost of Sales Cost of Goods Sold Total Cost of Sales Net Revenue Current Month Actual $ 39,958.00 0.00 0.00 23,580.60 103,906.14 167,444.74 0.00 0.00 167,444.74 Expenses Salaries and Wages 45,885.00 Payroll Taxes 4,678.12 Benefits 8,217.52 Total Personnel Expenses 58,780.64 Trade Shows & Bids 4,455.72 Fams & Site Inspections 151.40 Advertising & Mktg. 11,934.49 Publications & Print Proj 79,188.86 Total Marketing 95,730.47 Operating Expenses 20,496.95 Spokane Regional CVB Income Statement For the Three Months Ending March 31, 2003 Current Month Budget $ 49,083.33 0.00 0.00 24,166.67 103,575.01 176,825.01 0.00 0.00 176,825 01 54,252.17 5,696.42 8,300.58 68,249.17 5,966.67 3,166.67 11,508.34 80,400.01 101,041.69 40,844.18 \` f Year to Date Actual S 122,000.13 48,750.00 ' 0.00 70,910.44 116,721.47 358,382.04 107.72 107.72 358,274.32 150,385.78 16,104.75 27,068.20 193,558.73 22,584.38 973.10 28,420.14 84,840.64 , For Management Purposes Only Year to Date Variance Total Year Bud Budget $ 147,249.99 48,750.00 0.00 72,500.01 122,225.03 390,725.03 0.00 0.00 390,725.03 162,756.51 ' 17,089.26 24,901.74 204,747.51 21,700.01 6,600.01 43,000.02 . 85,100.03 .136,818.26 156,400.07 • 68,577.24 91,292.54 Total Cash Expenses 175,008.06 210,135.04 398,954.23 452,440.12 Depreciation & Amortizat 4,297.00 4,296.67 12,891.00 12,890.01 Net Chg in Fund Balance $ <11,860.32> $ <37,606.70> $ ' <53,570.91> $ <74,605.10> <25,249.86> 0.00 0.00 <1,589.57> <5,503.56> <32,342.99> 107.72 107.72 <32,45 <12,370.73> <984.51> 2,166.46 <11,188.78> 884.37 <5,626.91> <14,579.88> <259.39> <19,581.81> <22,715.30> <53,485.89> 0.99 21,034.19 589,000.00 195,000.00 180,000.00 290,000.00 180,650.00 1,434,650.00 1,000.00 1,000.00 1,433,650.00 651,026.00 68,357.00 99,607.00 818,990.00 53,400.00 23,500.00 136,850.00 121,150.00 334,900.00 278,900.00 1,432.790.00 51,560.00 <50,700.00> � j Page: 1 3 Sep 2003 Page 1 of 2 Chris Bainbridge From: Richard Munson Sent: Thursday, September 04, 2003 1:21 PM To: Chris Bainbridge Subject: hOTEL - mOTEL tAX 3 Sep 2003 9/4/2003 Motel /Hotel Tax Debate Last night was an interesting exercise in democracy. To put this whole thing in perspective, we are talking about a revenue source that represents .7% of our projected revenues ($200,000/$28,000,000). To say we have spent a little too much time on the subject is probably a gross understatement. However, these funds are tax dollars, and we do have an obligation and duty to do our best to make sure the funds are expensed efficiently and in a manner that is completely accountable to the public. Frankly, I don't think we have achieved either of these goals. I was appalled to hear the CVB has an administrative overhead of over $800,000.00 with an annual budget of just $1.2 million. Their explanation of this figure leads me to believe they cannot track nor account for the effectiveness of their sales efforts. If there were a choice, I would vote to withhold all funds from them until they are able to account for and measure the effectiveness of the dollars we give thorn. Given the information we received last night, the CVB is currently incapable of providing an accurate accounting of the funds they expense. I am very, very uncomfortable with this situation. This council has adopted a policy of accountability with every single entity we deal with., including our own staff. To ignore this requirement with the CVB is not in line with our stated policy. However, they are the only game in town. The revenue they spend on selling the area to the outside world is revenue the hoteliers and other tourist related businesses do not have to spend from their already strapped revenues (please note I did not say profits). Since I am going to recommend a higher allocation for the CVB, I hope you all will join me and insist that they develop an accountability system that will measure the effectiveness of the $800,000.00 in their administrative efforts to "sell Spokane ". If they can't do this, we should be looking for another place for the money next year. Perhaps our staff can assist them in developing this accountability system. I have a. few ideas that may help them. I want to work with them, not against them. I believe our committee did their very best to provide us with a balance of event building and marketing activities. However, two of the events, in my opinion, were given too much money. The Museum has not shown they have achieved popular support of our citizens. One way to measure that support is through the amount of publicly donated dollars collected. The amount reported last night does not reflect an activity people can't wait to attend. Again, perhaps our staff can assist them in developing the kind of plan that will begin to excite our citizens about this project. I am recommending we give the Museum $1000.00 to start with. Should this project garner a reasonable amount of public support, we can revisit their needs next year. Valleyfest is an important part of the City's effort to establish a sense of community identity. The efforts of the volunteers who put this event on are almost Herculean and demand our praise and respect: However, from the testimony given last night, it is 3 Sep 2003 Page 2 of 2 obvious they have not developed a plan that will evolve this activity into a regional, tourist dollar collecting, event. Until we can see that such a plan has been developed, 1 cannot see how we can give them as much money as they have requested. Given the short time frame to put the media campaign together, 1 recommend we reduce the grant by half the requested amount. The money the committee approved for the Fairgrounds is appropriate. Dolly's explanation of how she can receive the dollars strongly indicates the money must be given in a pass - through arrangement with an outside agency. As long a.s the CVB will be that agency and will not charge a single penny of administrative costs against these funds, I suggest we give the recommended amount to the CVB. Mike Flannigan tells me that a pass - through organization is not required. Seems Dolly is having some other issues she wishes to address. I for one am not willing to get involved with internal issues. Ilowever, if no pass through organization is required, than we can just as easily give the money directly to the fair grounds. I am sure Mike will be able to add to our information on Tuesday. I hope he will have our legal staff check this ou.t for us as well. As 1 said last night, I believe the ad is a good and well conceived idea. Again, if the CVB will agree to use these funds exclusively for the development and placement of the ad, I would agree to give them the funds. They probably have the expertise to do this well. We should insist that any ad must include ALL of the hoteliers in the valley, regardless of size. The reallocation 1 just suggested will give the CVB a little over $100,000.00. I want to emphasize the absolute requirement that next year, the CVB must be able to account for the dollars they are spending and be able to measure the success of how these dollars bring revenue to the Spokane Valley. 1 hope we resolve this issue on Tuesday and will move on to more pressing matters such as the waste water treatment plant and our budget development process. Here is what the revised allocations will look like (if we give the $17,500 for the fairgrounds to the CVB): CVB $101,200 Valley Fest $2,800 Valley Soccer Concession Stand $18,000 Regional Sports Commission $52,200 Valley Legacy Museum $1,000 YMCA Skate Park $24,800 TOTAL $ 199,000 9/4/2003 Chris Bainbridge Page 1 of 1 From: Richard Munson Sent: Thursday, September 04, 2003 1:32 PM To: City Council; Chris Bainbridge; Dave Mercier; Cary Driskell; Stan Schwartz Hi Steve, Your numbers are the correct ones. I apparently reversed them in error. Goes to show you what sleep deprivation can do to you. Rich I was mistaken as to what I thought was going to the Skate Park and the Concession stand. I would like to see those two numbers reversed (Concession stand would get the $24,500 and the Skate Park receive $18,000.) Please let me know your thoughts on that change. My reasoning being that the concession stand can most likely provide more immediate benefit to generating tourism dollars than a larger investment in the skate park. Thanks. Steve 9/4/2003 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 9 - - 03 City Manager Sign -off: Item: Check all that apply: consent XX old business new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Proposed Zoning Code Compliance chapter — second reading. GOVERNING LEGISLATION: Interim Zoning Code adopted by Council prior to incorporation. PREVIOUS COUNCIL ACTION TAKEN: This is the third touch by Council, with the first touch being a study session 8- 19 -03, second touch being first reading 8- 26 -03. BACKGROUND: Spokane Valley adopted the Spokane County Zoning Code as its Interim Zoning Code prior to incorporation, with the intent of reviewing it and making changes where appropriate to meet local demands. One of the items is Chapter 14.406, providing remedies for the City in the event a person violates provisions of the Interim Zoning Code. The chapter, as adopted, failed to provide adequate disincentives (civil penalties) or processes for abatement of identified violations. This new section significantly enhances what was originally adopted, with particular focus on abating the violations and providing the best mechanisms to be able to secure payment of costs incurred by the City in abating violations. The Planning Commission approved a very similar version, with changes made after their approval relating to the City getting a judicial abatement order prior to entry onto private property. On -going discussions with WCIA and MRSC revealed the need for such an order, so that change was made. At the study session on 8- 19 -03, the Council requested additional language to give the Director authority to determine if a complaint is reliable. That language is found at 14.406.035, and includes that the Director has no obligation to conduct a field investigation in the event the complaint is found unreliable. The Council had this on first reading 8- 26 -03, and did not request additional changes. OPTIONS: Continue with the existing Interim Zoning Code compliance chapter. RECOMMENDED ACTION OR MOTION: Motion to adopt the ordinance as written. BUDGET /FINANCIAL IMPACTS: Anticipated to be neutral. The revised chapter authorizes an abatement fund, which will be funded by penalties assessed under the chapter. STAFF CONTACT: Cary Driskell or Marina Sukup. ATTACHMENTS: Ordinance repealing and replacing Interim Zoning Code Chapter 14.406. CITY OF SPOKANE. VALLEY, WASHINGTON ORDINANCE NO. 03 -078 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON, REPEALING CHAPTER 14.406 OF TILE CITY OF SPOKANE VALLEY ZONING CODE ANT) ESTABLISHING ZONING CODE COMPLIANCE CHAPTER 14.406. WHEREAS, The City of Spokane Valley, Washington adopted a Zoning Code to regulate the orderly development of the City of Spokane Valley; and WHEREAS, the existing code compliance provisions, Section 14.406, does not adequately provide the necessary processes to ensure abatement of identified code violations; WHEREAS, violations of the City of Spokane Valley Zoning Code pose a threat to the health, welfare and safety of the citizens of the City of Spokane Valley, and the City of Spokane Valley desires to address this problem; and WHEREAS, enforcement of the City of Spokane Valley Zoning Code is within the police powers of the City of Spokane Valley, Washington. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SPOKANE VALLEY, WASHINGTON ORDAINS AS FOLLOWS: Section 1. Re peal. Section 14.406 of the City of Spokane Valley Zoning Code relating to Zoning Code compliance is repealed in its entirety. Section 2. New Zoning Code Compliance Section. The new Zoning Code Compliance Section 14.406, as set forth in Attachment "A" to this Ordinance, is adopted. Section 3. Severability. if any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance Section 4. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof occurs in the official newspaper of the City as provided by law. A`I" FI ST: Passed on this day of September, 2003. City Clerk Christine Bainbridge Approved As To Norm: Deputy City Attorney, Cary P. Driskell Date of Publication: Effective Date: • Mayor, Michael DeVleming Ordinance 03-078 Zoning Code Page 1 of 1 Proposed staff` draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language 14.406.005 - 14.406.010 - 14.406.015 - 14.406.020 - 14.406.025 - 14.406.030 - 14.406.035 - 1 4.406.050 - 14.406.060 - 14.406.070 - 14.406.080 - 14.406.090 - 14.406.095 - 14.406.100 - 14.406.110 - 14.406.120 - 14.406.200 - 14.406.210 - 14.406.220 - 14.406.230 - 14.406.240 - 14.406.300 - 14.406.305 - 14.406.310 - 14.406.320 - 14.406.330 - 14.406.335 - 14.406.340 - permit. 1 4.406.350 - 14.406.360 - 14.406.400 - 14.406.410 - 14.406.420 - 14.406.430 - 14.406.500 - 14.406.520 - 14.406.530 - 14.406.540 - 14.406.550 - 14.406.560 - 14.406.570 - 14.406.580 - 14.406.590 - Name and intent. Statement of policy. Definitions. Relationship to Growth Management Plan. Declaration of public nuisance — misdemeanor. Enforcement, authority and administration. Guidelines for departmental responses to complaints. Initial investigation. Procedures when probable violation is identified. Service — citation, notice and order, and stop work order. Training and rulemaking. Obligations of persons responsible for code violation. Determination of compliance. Voluntary compliance agreement — authority. Voluntary compliance agreement — contents. Failure to meet terms of voluntary compliance agreement. Citations — authority. Citations — effect. Citation — contents. Citation — modification or revocation. Citation — remedy — civil penalties. Notice and order — authority. Notice and order — effect. Notice and order — contents. Notice and order — recording. Notice and order — supplementation, revocation, modification. Notice and order - administrative conference. Notice and order — remedies — suspension, revocation or limitation of Notice and order — remedies Notice and order — remedies Stop work order — authorized Stop work order — effect. Stop work order — remedy — Stop work order — remedy — Civil penalties — assessment Civil penalties — duty to corn Civil penalties — community Civil penalties — waivers. Civil penalties — critical areas Cost recovery. Collection of civil penalties, Abatement Code compliance abatement Chapter 14.406 Zoning Code Compliance — denial of permit. — abatement. civil penalties. criminal penalties. schedule. ply. service. fees and costs. fund — authorized. While this chapter does authorize the City of Spokane Valley to take action to enforce the City ordinances and regulations, it shall not be construed as placing responsibility for code compliance or enforcement upon the City in any particular case, or as creating any duty on the part of the City to any particular person or class of persons. Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language 14.406.600 - Administrative appeals — standing - filing requirements. 14.406.610 - Administrative appeal — notice of hearing. 14.406.620 - Administrative appeal — procedures. 14.406.630 - Administrative appeal — final order. 14.406.640 - Judicial enforcement — petition for enforcement. 14.406.650 - Severability. 14.406.660 - Effective date. 14.406.005 — Name and intent. This chapter shall be known as "Zoning Code Compliance ". The purpose of this chapter is to identify processes and methods to encourage compliance with development ordinances and regulations adopted by the. City of Spokane Valley to promote and protect the general public health safety and welfare of City residents. This chapter declares certain acts to he civil violations and establishes non -penal enforcement procedures and civil penalties. This chapter also declares certain acts to be misdemeanors subject to prosecution by the City. It is the intention of the City to pursue code compliance actively and vigorously in order to protect the health, safety and welfare of the general public. This intent is to be pursued in a way that is consistent with adherence to and respectful of fundamental federal and state constitutional principles. 14.406.01.0 — Statement of policy. It is the policy of the City of Spokane Valley to emphasize code compliance by education and prevention as a first step. This policy is designed to ensure code compliance and timely action that is available to all persons and uniform in its implementation. While warnings and voluntary compliance are desirable as a first step, enforcement and civil penalties should be used for remedial purposes as needed to assure and effect code compliance. Abatement or remediation should be pursued when appropriate and feasible. Uniform and efficient procedures, with consistent application governed by regulation should be used to accomplish this policy. 14.406.015 — Definitions. A. "abate" means to take whatever steps are deemed necessary by the Director to ensure that the property complies with applicable code requirements. Abatement may include, but is not limited to, rehabilitation, demolition, removal, replacement or repair. 13. "civil code violation" means and includes an act or omission contrary to: 1. Any ordinance, resolution, regulation or public rule of the City that regulates or protects the use and development of land or water; and /or 2. The conditions of any permit, notice and order or stop work order issued pursuant to any such ordinance, resolution, regulation or public rule. 2 I >rnposcd staff draft Zon ing aide Compliance for first reading 8 -26 -03 — C. Driskel] 8 -]9 -03 witli new language C. "The City means the City of Spokane Val ley, Washington, 1. "days" will be counted as business days when five or less days are allowed to do an act required by this Ordinance. "days" will be considered calendar days when more than live days are allowed to do an act required by this Ordinance. E "determination of compliance" means a written statement from the Director or designee that the Director has reviewed evidence to determine that the violation(s) has been sufficiently abated as to the violation(s) stated in the voluntary compliance agreement, citation, notice and order or stop work order. F. "Director" means the Director of the Department of Community Development, or his or her designee(s) authorized in writing_ G. "found in violation" means" 1. That a citation, notice and order or stop work order has been issued and not timely appealed; or 2_ That a voluntary compliance agreement has been entered into; or 3. That the Hearing Examiner has determined that the violation has occurred and such determination has not been stayed or reversed on appeal. H. "Hearing Examiner" means the City of Spokane Valley Hearing Examiner, as provided by City of Spokane Valley Ordinance number 57. "mitigate" means to take measures, subject to City approval, to minimize the harmful effects of the violation where remediation is either impossible or unreasonably burdensome, J. "permit" means any .form of certificate, approval, registration, license or any other written permission issued by the City. All conditions of approval, and all casements and use limitations shown on the face of an approved final plat map which are intended to serve or protect the general public are deemed conditions applicable to all subsequent plat property owners, owner's tenants, and owner's agents as permit requirements enforceable under this chapter. K. " person " means any individual, association, partnership, corporation or legal entity, public or private, and the agents and assigns of such individual, association, partnership, corporation or legal entity. L. "person responsible for a code violation" means the person who caused the violation, if that can be determined, anchor the owner, lessor, tenant or other person entitled to control, use and/or occupancy of the property where the civil code violation occurs. M. "public rule" means any rule properly promulgated to implement City civil code provisions. Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language N. "remediate" means to restore a site to a condition that complies with sensitive area or other regulatory requirements as they existed before the violation occurred; or, for sites that have been degraded under prior ownerships, restore to a condition which does not pose a probable threat to the environment or to the general public health, safety or welfare. 0. "resolution" for purposes of this chapter means any resolution adopted by the City of Spokane Valley City Council. 14.406.020 — Relationship to Growth Management Plan. This chapter is adopted as development regulations pursuant to RCW 36.70A (Growth Management Act). 14.406.025 — Declaration of public nuisance — misdemeanor. A. All civil code violations are hereby determined to be detrimental to the general public health, safety and welfare and are hereby declared public nuisances. All conditions determined to be civil code violations shall be subject to and enforced pursuant to the provisions of this chapter except where specifically excluded by law or regulation. 13. Any person who willfully or knowingly causes, aids or abets a civil code violation pursuant to this chapter by any act of commission or omission is guilty of a misdemeanor. Upon conviction; the person shall be punished by a fine not to exceed one thousand dollars and/or incarceration for a term not to exceed ninety days. Each week (seven consecutive days) such violation continues shall be considered a separate misdemeanor offense. As an alternative, or in addition to any other judicial or administrative remedy provided in this chapter or by law or other regulation, the Director may recommend that the Office of the City Attorney file a misdemeanor complaint against the person responsible for code violation when the Director has documentation or other evidence that the violation was willful and knowing. 1.4.406.030 — Enforcement, authority and administration. A. In order to discourage public nuisances and otherwise promote compliance with applicable code provisions, the Director may, in response to field observations or reliable complaints, determine that civil code violations have occurred or are occurring, and may: 1. Enter into voluntary compliance agreements with persons responsible for code violations; 2. Issue citations and assess civil penalties as authorized by this chapter; 3. Issue notice and orders assess civil penalties and recover costs as authorized by this chapter; 4. Require abatement by means of a judicial abatement order, and if such abatement is not timely completed by the person or persons responsible for a code violation, undertake the abatement and charge the reasonable costs of such work as authorized by this chapter; 4 Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language 5. Allow a person responsible for the code violation to perform community service in lieu of paying civil penalties as authorized by SVZC 14.406.530; 6. Order work stopped at a site by means of a stop work order, and if such order is not complied with, assess civil penalties as authorized by this chapter; 7. Suspend, revoke or modify any permit previously issued by the Director or deny a pen application as authorized by this chapter when other efforts to achieve compliance have failed; and 8. Forward a written statement providing all relevant information relating to the violation to the Office of City Attorney with a recommendation to prosecute willful and knowing violations as a misdemeanor offense. B. The procedures set forth in this title are not exclusive. These procedures shall not in any manner limit or restrict the City from remedying civil code violations or abating civil code violations in any other manner authorized by law. C. In addition, or as an alternative, to utilizing the procedures set forth in this chapter, the Director may seek legal or equitable relief to abate any conditions or enjoin any acts or practices which constitute a civil code violation. D. In addition, or as an alternative, to utilizing the procedures set forth in this chapter, the Director may assess or recover civil penalties accruing under this chapter by legal action filed in Spokane County District Court by the Office of the City Attorney. E. The provisions of this chapter shall in no way adversely affect the rights of the owner, lessee or occupant of any property to recover all costs and expenses incurred and required by this chapter from any person causing such violation. F. in .administering the provisions for code enforcement, the Director shall have the authority to waive any one or more such provisions so as to avoid substantial injustice by application thereof to the acts or omissions of a public or private entity or individual, or acts or omissions on public or private property including, for example, property belonging to public or private utilities, where no apparent benefit has accrued to such entity or individual from a code violation. Any determination of substantial injustice shall be made in writing supported by appropriate facts. For purposes of this clause, substantial injustice cannot be based exclusively on financial hardship. O. The provisions of this chapter detailing the administration of code compliance procedures are intended only for the purpose of providing guidance to City employees and are not jurisdictional, and are not to be construed as creating a basis for appeal or a defense of any kind to an alleged code violation. H. The. Director may, upon presentation of proper credentials, with the consent of the owner or occupier of a building or premises, or pursuant to a lawfully issued inspection warrant, enter at reasonable times any building or premises subject to the consent or warrant to perform the duties imposed by this chapter. It is the intent of the City Council that any entry made to private -5- Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language property for the purpose of inspection for code violations be accomplished in strict conformity with constitutional and statutory constraints on entry, and the holdings of the relevant court cases regarding entry. The right -of -entry authorized by this chapter shall not supersede those legal constraints. 1. . The Director or his or her representative may request that the police, appropriate fire district, Spokane Regional I-Iealth District or other appropriate City department or other non -city agency assist in enforcement. 1.4.406.035 — Guidelines for departmental responses to complaints. A. The following guidelines should be applied by the Director, subject to resource limitations, when responding to code compliance complaints. The timelines identified below may be modified by Department rule, subject to council review and approval. 1. I-Iigh risk investigations needing an urgent response (within 24 hours) include any cases in which there is an imminent likelihood of or actual bodily harm, damage to public resources or facilities, damage to real or personal property, public health exposure or environmental damage or contamination.. 2. Moderate risk investigations needing a prompt response (within 72 hours) include cases in which there is risk of bodily harm, damage to public resources and/or facilities, damage to real or personal property, or environmental damage or contamination. 3. Low risk investigations needing response as time permits (within 14 days of violation being identified by code compliance staff) including cases where the violation is non - emergent, does not fit within the high risk or moderate risk categories and has only minor public impacts. B. The response times set out in this chapter are not jurisdictional, and failure to meet them in any particular case shall not affect the City's authority to enforce City code provisions with regard to that case. C. The Director is authorized to determine, based upon past complaints regarding a property, subsequent field investigations. and other relevant criteria, whether a complaint is reliable. If the Director determines a complaint is not reliable, the Director is not obligated to conduct a field investigation. 14.406.050 — Initial investigation. This chapter sets forth guidelines for more specific procedures to be used by the Director in implementing this chapter. The guidelines set forth in this chapter are not jurisdictional, and failure to meet them in any particular case shall not affect the City's authority to enforce City code provisions with regard to that case. A. Field verification. Except in emergencies and for low risk case complaints, field verification should be made if possible prior to, concurrent with, or shortly after notifying the person responsible for the code violation or alleged code violation. Low risk case complaints should be acknowledged by sending a letter to the person(s) responsible for the code violation. 6 Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language The letter should state that a violation may have occurred, but has not been verified, and should ask the recipient to contact the person issuing the letter. B. Advising interested parties of receipt of complaint and/or field investigation. 1. The person responsible for the code violation should be advised of any complaint by personal contact; phone; posting and mail (return receipt requested). 2. The complainant should be contacted by phone, and if possible, in person during the field visit. C. The Director will record all violations in a database system, including a list of all actions taken on the complaint. D. To the extent possible, the Department shall check its own records and the records of other agencies for previous violations on the site of the alleged violation or by the owner or occupant of the site or such other person as may be responsible for the code violation. E. Staff undertaking field investigations shall comply with the provisions of this chapter regarding right of entry. 14.406.060 — Procedures when probable violation is identified. A. The Director shall determine, based upon information derived from sources such as field observations, the statements of witnesses, relevant documents and data systems for tracking violations and applicable City codes, whether or not a violation has occurred. As soon as the Director has reasonable cause to determine that a violation has occurred, he or she shall document the violation and promptly notify the person(s) responsible for the code violation. B. Except as provided in subsection D, a warning shall be issued verbally or in writing promptly when a field inspection reveals a violation, or as soon as the Director otherwise determines a violation has occurred. The warning shall inform the person determined to be responsible for a code violation of the violation and allow the person an opportunity to correct it or enter into a voluntary compliance agreement as provided for by this chapter. Verbal warnings shall be logged and followed up with a written warning within five (5) days, and the site shall be re- inspected within fourteen (14) days. C. No warning need be issued in high risk cases, emergencies, repeat violation cases, cases that are already subject to a voluntary compliance agreement, cases where the violation creates or has created a situation or condition that is not likely to be corrected within seventy -two (72) hours, cases where a stop work order is necessary, or when the person responsible for the code violation knows, or reasonably should have known that the action was a civil code violation. D. Citations may be issued in moderate and low risk cases, provided that the Director determines it is probable that the violation can likely be fully corrected in a short period of time. E. Notice and orders should be issued in all high risk cases in which a voluntary compliance agreement has not been entered into within two (2) days of notification by the. Director. Notice -7- Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language and orders may be issued in moderate and low risk cases where the Director determines that the violation is unlikely to be fully corrected in a short period of time. F. The Director shall use all reasonable means to determine and cite the person actually responsible for the code violation occurring when the property owner has not directly or indirectly caused the violation. G. If the violation is not corrected, or a voluntary compliance agreement is not achieved within fifteen (15) days of notification by the Director, a notice and order or stop work order should be issued. Citations should be issued within fifteen (15) days from receipt of a complaint. Notice and orders should be issued within twenty (20) days from receipt of a complaint. Stop work orders should be issued promptly upon discovery of a violation in progress. H. All complainants will be. asked by staff at the time the complaint is filed whether they wish to be kept advised of enforcement efforts. Any complainant who provides a mailing address and requests to be kept advised of enforcement efforts should be mailed a copy of all written warnings, voluntary compliance agreements, citations, notice and orders, stop work orders and notices of settlement conferences issued by the Director with regard to the alleged violation. Any complainant may appeal a determination of code compliance issued by the Director pursuant to SVZC 14.406.095. 14.406.070 — Service — citation, notice and order, and stop work order. A. Service of a citation or notice and order shall be made on a person responsible for code violation by one or more of the following methods: 1. Personal service of a citation or notice and order may be made on the person identified by the Department as being responsible for the code violation, or by leaving a copy of the citation or notice and order at the person's house of usual abode with a person of suitable age and discretion who resides there; 2. Service directed to the landowner and /or occupant of the property may be made by posting the citation or notice and order in a conspicuous place on the property where the violation occurred and concurrently mailing notice as provided for below, if a mailing address is available; 3. Service by mail may be made for a citation or a notice and order by mailing two copies, postage prepaid, one by ordinary first class mail and the other by certified mail, to the person responsible for the code violation at his or her last known address, at the address of the violation, or at the address of the place of business of the person responsible for the code violation. The taxpayer's address as shown on the tax records of Spokane County shall be deemed to be the proper address for the purpose of mailing such notice to the landowner of the property where the violation occurred. Service by mail shall be presumed effective upon the third business day following the day upon which the citation or notice and order was placed in the mail. B. For notice and orders only, when the address of the person responsible for the code violation cannot be reasonably determined, service may be made by publication once in the -8 Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskcll 8- 19-03 with new language City's newspaper of record. Service by publication shall conform to the requirements of Civil Rule 4 of the Rules for Superior Court. C. Service of a stop work order on a person responsible for a code violation may be made by posting the stop work order in a conspicuous place on the property where the violation occurred or by serving the stop work order in any other manner permitted by this chapter. D. The failure of the Director to make or attempt service on any person named in the citation, notice and order or stop work order shall not invalidate any proceedings as to any other person duly served. 14.406.080 — Training and rulcmaking. A. In order to ensure strict conformity with the constraints on entry imposed by state and federal law, and to ensure that City employees deal with the public in a manner which respects the rights of private property owners, the Director shall develop and adopt internal procedures, protocols and training programs governing the conduct of searches by compliance officers. 13. The Director shall adopt procedures to implement the provisions of this chapter, and specifically the guidelines set out in this chapter describing.reasonable and appropriate protocols for investigating code violations. 14.406.090 — Obligations of persons responsible for code violation. A. It shall be the responsibility of any person identified as responsible for code a violation to bring the property into a safe and reasonable condition to achieve code compliance. Payment of civil penalties, applications for permits, acknowledgement of stop work orders and compliance with other remedies does not substitute for performing the corrective work required and having the property brought into compliance to the extent reasonably possible under the circumstances. B. Persons determined to be responsible for a code violation pursuant to a citation or notice and order shall be liable for the payment of any civil penalties and abatement costs, provided however, that if a property owner affirmatively demonstrates that the action which resulted in the violation was taken without the owner's knowledge or consent by someone other than the owner or someone acting on the owner's behalf, that owner shall be responsible only for bringing the property into compliance to the extent reasonably feasible under the circumstances. Should the owner not correct the violation, only those abatement costs necessary to bring the property into a safe and reasonable condition, as determined by the Director, shall be assessed by the City. No civil penalties shall be assessed against such an owner or his or her property interest. 14.406.095 — Determination of compliance. After issuance of a warning, citation, voluntary compliance agreement, citation, notice and order, or stop work order, and after the person(s) responsible for a code violation have come into zoning code compliance to the satisfaction of the Director, the Director shall issue a written determination of compliance. The Director shall mail copies of the determination of compliance to each person originally named in the warning, voluntary compliance agreement, citation, notice and order, or stop work order, as well as the complainant, by certified mail, five -day return receipt requested. Proposed slinff draft Zoning Code Compliance for first reading 8-26 -03 — C. Driskell 8 -19 -03 with new language • 14.406.100— Voluntary compliance agreement — authority. A. Whenever the Director determines that a code violation has occurred or is occurring, the Director shall make reasonable efforts to secure voluntary compliance from the person responsible for the code violation. Upon contacting the person responsible for the code violation, the Director may enter into a voluntary compliance agreement as provided for in this chapter. B. A voluntary compliance agreement may be entered into at any time after issuance of a verbal or written warning, a citation, notice and order or a stop work order and before an appeal is decided pursuant to SVZC 14.406.630. C. Upon entering into a voluntary compliance agreement, a person responsible for a code violation waives the right to administratively appeal, and thereby admits that the conditions described in the voluntary compliance agreement existed and constituted a civil code violation. D. The voluntary compliance agreement shall incorporate the shortest reasonable time period for compliance, as determined by the Director. An extension of the time limit for compliance, or a modification of the required corrective action may be granted by the Director if the person responsible for the code violation has shown due diligence or substantial progress in correcting the violation, but circumstances render full and timely compliance under the original conditions unattainable. Any such extension or modification must be in writing and signed by the Director and person(s) who signed the original voluntary compliance agreement. � =1 L" E. The voluntary compliance agreement is not a settlement agreement. J 14.406.110 — Voluntary compliance agreement — contents. A. The voluntary compliance agreement is a written, signed commitment by the person(s) responsible for a code violation in which such person(s) agrees to abate the violation, remediate the site, and/or mitigate the impacts of the violation. The voluntary compliance agreement shall include the following: 1. The name and address of the person responsible for the code violation; 2. The address or other identification of the location of the violation; 3. A description of the violation and a reference to the provision(s) of the ordinance, resolution or regulation which has been violated; 4. A description of the necessary corrective action to be taken and identification of the date or time by which compliance must be completed; 5. The amount of the civil penalty that will be imposed pursuant to SVZC 14.406.500 i.f the voluntary compliance agreement is not satisfied; 6. An acknowledgement that if the Director determines that the terns of the voluntary compliance agreement are -not met, the City may, without issuing a citation, - 10- Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language notice and order or stop work order, impose any remedy authorized by this chapter, enter the real property and perform abatement of the violation by the City, assess the costs incurred by the City to pursue code compliance and to abate the violation, including reasonable legal fees and costs, and the suspension, revocation or limitation of a development permit obtained or to be sought by the person responsible for the code violation; 7. An acknowledgement that if a penalty is assessed, and if any assessed penalty, fee or cost is not paid, the Director may charge the unpaid amount as a lien against the property where the civil code violation occurred if owned by the person responsible for the code violation, and that the unpaid amount may be a joint and several personal obligation of all persons responsible for the code violation; 8. An acknowledgement that by entering into the voluntary compliance agreement, the person responsible for the code violation thereby admits that the conditions described in the voluntary compliance agreement existed and constituted a civil code violation; and 9. An acknowledgement that the person responsible for the code violation understands that he or she has the right to be served with a citation, notice and order, or stop work order for any violation identified in the voluntary compliance agreement, has the right to administratively appeal any such citation, notice and order, or stop. work order, and that he or she is knowingly, voluntarily and intelligently waiving those rights. 14.406.120 — Failure to meet terms of voluntary compliance agreement. A. If the terms of the voluntary compliance agreement are not completely met, and an extension of time has not been granted, the Director may enter the real property and abate the violation without seeking a judicial abatement order. The person responsible for code compliance may, without being issued a citation, notice and order, or stop work order, be assessed a civil penalty as set forth by this chapter, plus all costs incurred by the City to pursue code compliance and to abate the violation, and may be subject to other remedies authorized by this chapter. Penalties imposed when a voluntary compliance agreement is not met accrue from the date that an appeal of any preceding citation, notice and order, or stop work order was to have been filed or from the date the voluntary compliance agreement was entered into if there was not preceding citation, notice and order, or stop work order. B. The Director may issue a citation, notice and order, or stop work order for failure to meet the terms of a voluntary compliance agreement. 14.406.200 — Citations — authority. Whenever the Director has determined, based upon investigation of documents and/or physical evidence, that a civil code violation has occurred, the Director may issue a citation to any person responsible for code violation. The Director shall make a determination whether or not to issue a citation within fifteen (15) days of receiving a complaint alleging a violation or otherwise discovering that a violation may potentially exist. Subsequent complaints shall be treated as new complaints for purposes of this chapter. 1-Iowever, such subsequent complaints shall not constitute a separate violation to which the penalties of this chapter apply. A. A citation represents a determination that a civil code violation has occurred and that the cited party is a person responsible for a code violation. Proposed staff draft Zoning Code Compliance for first reading 8-26-03 — C. Driskell . 8 -19 -03 with new language 14.406.210 — Citations — effect. B. A citation subjects the person responsible for a code violation to the civil penalties prescribed by SVZC 14.406.500. C. The person responsible for a code violation shall either pay the civil penalties assessed within twenty (20) days of the date of issuance of the citation, or appeal the citation according to the procedures described in SVZC 14.406.600 -630. D. Failure to appeal the citation within twenty (20) days shall render the citation a final determination that the conditions described in the citation existed and constituted a civil code violation and that the cited party is liable as a person responsible for a code violation. F. Imposition of a civil penalty creates a joint and several personal obligation in all persons responsible for a code violation who are served with notice of the violation. The Office of the City Attorney, on behalf of the City of Spokane Valley may collect the civil penalties assessed by any appropriate legal means. F. Issuance of a citation in no way limits the Director's authority to issue a notice and order or stop work order to any person responsible for a code violation pursuant to this chapter. 14.406.220 — Citation — contents. The citation shall include all of the following information: A. The address, when available, or location of the civil code violation; 13. A legal description of the real property or the Spokane County tax parcel number where the violation occurred or is located, or a description identifying the property by commonly used locators; C. A statement that the Director has found the named person(s) to have conun.itted a civil code violation and a brief description of the violation(s) found; D. A statement of the specific ordinance, resolution, regulation, public rule, permit condition, notice and order provision or stop work order provision that was or is being violated; L. A statement that the citation represents a determination that a civil code violation has occurred and that the cited party is subject to a civil penalty; F. A statement of the amount of the civil penalty assessed, that payment of the civil penalties assessed under this chapter does not relieve a person found to be responsible for a code violation of his or her duty to correct the violation and/or to pay any and all civil penalties or other cost assessments issued pursuant to this chapter, and that the penalty must be paid within twenty (20) days, i f not appealed pursuant to SVZC 14.406.600 -630; Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language • F. A statement of the corrective or abatement action required to be taken and that all required permits to perform the corrective action must be obtained from the proper issuing agency; G. A statement advising that any person named in the citation, or having any record or equitable title in the property against which the citation is issued may appeal from the citation to the Hearing Examiner within twenty (20) days of the date of service of the citation; H. A statement advising that a failure to appeal the citation within twenty (20) days renders the citation a final determination that the conditions described in the citation existed and constituted a civil code violation, and that the named party is liable as a person responsible for a code violation; and I. A statement advising that a willful and knowing violation may be referred to the Office of the City Attorney for prosecution pursuant to SVZC 14.406.025. 14.406.230 — Citation — modification or revocation. A. The Director may add to, revoke in whole or in part, or otherwise modify a citation by issuing a written supplemental citation. The supplemental citation shall be governed by the same procedures and time limits applicable all citations contained in this chapter. B. The Director may issue a supplemental citation, or revoke a citation issued under this chapter: 1. if the original citation was issued in error; 2. whenever there is new information or change of circumstances; or 3. if a party to a citation was incorrectly named. C. Such revocation or modification shall identify the reasons and underlying facts for modification or revocation, and shall be served on the person responsible for a code violation in conformity with this chapter. 14.406.240 — Citation — remedy — civil penalties. A citation shall carry a civil penalty to be determined with reference to the schedule contained in SVZC 14.406.500. 14.406.300 — Notice and order — authority. When the Director has reason to believe, based on investigation of documents and/or physical evidence, that a code violation exists or has occurred, or that the civil code violations cited in a citation have not been corrected, or that the terms of a voluntary compliance agreement have not been met, the Director is authorized to issue a notice and order to any person responsible for a code violation. The Director shall make a determination whether or not to issue a notice and order within twenty (20) days of receiving a complaint alleging a violation or otherwise discovering that a violation may potentially exist, or within ten (10) days of the end of a voluntary compliance agreement time period which has not been met. Subsequent complaints shall be treated as new complaints for the purposes of this chapter. Issuance of a citation is not a condition precedent to the issuance of a notice and order. - 13 - Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language • 14..406.305 — Noticc and order — effect. A. A notice and order represents a determination that a civil code violation has occurred, that the cited party is a person responsible for a code violation, and that the violations set out in the notice and order require the assessment of penalties and other remedies that may be specified in the notice and order. 13. Upon a determination by the Director that a civil code violation has occurred pursuant to a notice and order, the Director is authorized to impose appropriate civil penalties pursuant to SVZC 14.406.500 -580. C. Any person identified in the notice and order as responsible for a code violation may appeal the notice and order within twenty (20) days according to the procedures described in SVZC 14.406.600 -630. D. Failure to appeal the notice and order within the applicable time limits shall render the notice and order a final determination that the conditions described in the notice and order existed and constituted a civil code violation, and that the named party is liable as a person responsible for a code violation. E. Issuance of a notice and order in no way limits a Director's authority to issue a citation or stop work order to a person previously cited through the notice and order process pursuant to this chapter. 14.406.310 — Noticc and order — contents. The notice and order shall contain the following information: A. The address, when available, or location of the civil code violation; B. A legal description of the real property or the Spokane County tax parcel number where . the violation occurred or is located, or a description identifying the property by conunonly used locators; C. A statement that the Director has found the named person(s) to have committed a civil code violation and a brief description of the violation(s) found; D. A statement of the specific provisions of the ordinance, resolution, regulation, public rule, permit condition, notice and order provision or stop work order that was or is being violated; E. A statement that a civil penalty is being assessed, including the dollar amount of the civil penalties per separate violation, and that any assessed penalties must be paid within twenty (20) days of service of the notice and order; F. A statement advising that any costs of 'enforcement incurred by the City shall also be assessed against the person to whom the notice and order is directed; Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language G. A statement that payment of the civil penalties assessed under this chapter does not relieve a person found to be responsible fora code violation of his or her duty to correct the violation and /or to pay any and all civil penalties or other cost assessments issued pursuant to this chapter; H. A statement advising that the notice and order will be recorded against the property in the Spokane County Auditor's Office subsequent to service; 1. A statement of the corrective or abatement action required to be taken and that all required permits to perform the corrective action must be obtained from the proper issuing agency; J. A statement advising that, if any required work is not commenced or completed within the time specified by the notice and order, the Director may proceed to seek. a judicial abatement order from Spokane County Superior Court to abate the violation pursuant to SVZC 14.406.580; K. A statement advising that, if any assessed penalty, fee or cost is not paid on or before the due date, the Director may charge the unpaid amount as a lien against the property where the civil code violation occurred if owned by a person responsible for a code violation, and as a joint and several personal obligation of all persons responsible for a code violation; L. A statement advising that any person named in the notice and order, or having any record or equitable title in the property against which the notice and order is recorded may appeal from the notice and order to the I- Tearing Examiner within twenty (20) days of the date of service of the notice and order; M. A statement advising that a failure to correct the violations cited in the notice and order could lead to the denial of subsequent Spokane Valley permit applications on the subject property; N. A statement advising that a failure to appeal the notice and order within the applicable time limits renders the notice and order a final determination that the conditions described in the notice and order existed and constituted a civil code violation, and that the named party is liable as a person responsible for a code violation; and O. A statement advising the person responsible for a code violation of his/her duty to notify the Director of any actions taken to achieve compliance with the notice and order.. P. A statement advising that a willful and knowing violation may be referred to the Office of the City Attorney for prosecution pursuant to SVZC 14.406.025. 14.406.320 — Notice and order — recording. A. When a notice and order is served on a person responsible for a code violation, the Director shall file a copy of the same with the Spokane County Auditor's Office. B. When all violations specified in the notice and order have been corrected or abated to the satisfaction of the Director, the Director shall file a certificate of compliance with the Spokane - 15 - Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell • 8 -19 -03 with new language County Auditor's Office within five days of receiving evidence of abatement. The certificate shall include a legal description of the property where the violation occurred and shall state whether any unpaid civil penalties for which liens have been filed are still outstanding and if so, shall continue as liens on the property. C. After all liens have been satisfied, the Director shall file a notice of satisfaction of lien with the Spokane County Auditor's Office within five days of final payment to City. 14.406.330 — Notice and order — supplementation, revocation, modification. . A. The Director may add to, revoke in whole or in part, or otherwise modify a notice and order by issuing a written supplemental notice and order. The supplemental notice and order shall be governed by the same procedures and time limits applicable to all notice and orders contained in this chapter. B. The Director may issue a supplemental notice and order, or revoke a notice and order issued under this chapter: If the original notice and order was issued in error; 2. Whenever there is new information or change of circumstances; or 3. If a party to an order was incorrectly named. C. Such revocation or modification shall identify the reasons and underlying facts for modification or revocation, and shall be. filed with the Spokane County Auditor's Office. 14.406.335 — Notice and order - administrative conference. An informal administrative conference may be conducted by the Director at any time for the purpose of facilitating communication among concerned persons and providing a forum for efficient resolution of any violation. Interested parties shall not unreasonably be excluded from such conferences. 14.406.340 — Notice and order — remedies — suspension, revocation or limitation of permit. A. The Director may suspend revoke or modify any permit issued by such Director whenever: 1. The permit holder has committed a code violation in the course of performing activities subject to that permit; 2. The permit holder has interfered with the Director in the performance of his or her duties related to that permit; 3. The permit was issued in error or on the basis of materially incorrect information supplied to the City; 4. permit fees or costs were paid to the City. by check and returned from a financial institution marked non - sufficient funds (NSF) or canceled; or - 16 - Proposed staffdraf. Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language 5. For a permit or approval that is subject to sensitive area review, the applicant has failed to disclose a change of circumstances on the development proposal site which materially affects an applicant's ability to meet the permit or approval conditions, or which makes inaccurate the sensitive area study that was the basis for establishing permit or approval conditions. B. Such suspension, revocation, or modification shall be carried out through the notice and order provisions of this chapter and shall be effective upon the compliance date established by the notice and order. Such suspension, revocation or modification may be appealed to the Wearing Examiner using the appeal provisions of this chapter. C. Notwithstanding any other provision of this chapter, the Director may immediately suspend operations under any permit by issuing a stop work order pursuant to SVZC 14.406.400- 430. 14.406.350 — Notice and order — remedies — denial of permit. A. The City may deny a development proposal permit when, with regard to the site or project for which the permit is submitted: 1. Any person owning the property or submitting the development proposal has been found in violation of any ordinance, resolution, regulation or public rule of the City that regulates or protects the public health, safety and welfare, or the use and development of land and water; and /or 2. Any person owning the property or submitting the development proposal has been found in violation and remains in violation of the conditions of any permit, notice and order or stop work order issued pursuant to any such ordinance, resolution, regulation or public rule; and/or B. In order to further the remedial purposes of this chapter, such denial may continue until the violation is cured by restoration accepted as complete by the City and by payment of any civil penalty imposed for the violation, except that permits or approvals shall be granted to the extent necessary to accomplish any required restoration or cure. 14.406.360 — Notice and order — remedies — abatement. In addition, or as an alternative, to any other judicial or administrative remedy, the Director may use the notice and order provisions of this chapter to order any person responsible for a code violation to abate the violation and to complete the work at such time and under such conditions as the Director determines reasonable under the circumstances. If the required corrective work is not commenced or completed within the time specified, the Director may seek a judicial abatement order pursuant to this chapter. 14.406.400 — Stop work order — authorized. The Director is authorized to issue a stop work order to a person responsible for a code violation. Issuance of a citation or notice and order is not a condition precedent to the issuance of the stop work order. 14.406.410 — Stop work order — effect. - 17 - L Citations $250 2. Notice and orders.and stop work orders a. basic initial penalty S500 b. additional initial penalties may be added where there is: 1. public health risk — amount depends on severity $0 -2,500 2. environmental damage - amount depends on severity $0 -2,500 Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -I9 -03 with new language A. A stop work order represents a determination that a civil code violation has occurred or is occurring, and that any work or activity that caused, is causing or contributing to the violation on the property where the violation has occurred, or is occurring, must cease. B. A stop work order requires the immediate cessation of the specified work or activity on the named property. Work activity may not resume unless specifically authorized in writing by the Director. C. A stop work order may be appealed according to the procedures prescribed by SVZC 14.406.600 -630. D. Failure to appeal the stop work order within twenty (20) days renders the stop work order a final determination that the civil code violation occurred and that work was properly ordered to cease. E. A stop work order may be enforced by the City Police. 14.406.420 — Stop work order — remedy — civil penalties. A. In addition to any other judicial or administrative remedy, the Director may assess civil penalties for the violation of any stop work order according to the civil penalty schedule established i.n SVZC 14.406.500. B. Civil penalties for the violation of any stop work order shall begin to accrue on the first day the stop work order is violated, and shall cease accruing on the day the work is actually stopped. C. Violation of a stop work order shall be a separate violation from any other civil code violation. 14.406.430 — Stop work order — remedy — criminal penalties. In addition to any other judicial or administrative remedy, the Director may forward to the Office of City Attorney a detailed factual background of the alleged violation with a recommendation that a misdemeanor charge be filed against the person(s) responsible for any willful violation of a stop work order. 14.406.500 — Civil penalties — assessment schedule. A. Civil penalties for civil code violations shall be imposed for remedial purposes and shall be assessed for each violation identified in a citation, notice and order or stop work order, pursuant to the following schedule: - 18 - 3. damage to property - amount depends on severity $0 -2,500 4. history of similar violations (less than three) $0 -1,000 5. history of similar violations (three or more) $0 -5,000 6. economic benefit to person responsible for violation $0 -5,000 c. the above penalties may be offset by the following compliance 1. full compliance with a voluntary compliance agreement with prior history of 0 -1 similar violations $0 -1,500 2. full compliance with a voluntary compliance agreement and a history of two or more prior similar violations $0 -250 Proposed staff draft Zoning Code Compliance for first reading 8 - 26 - 03 — C. Driskell B. The total initial penalties assessed for notice and orders and stop work orders pursuant to this chapter shall apply for the first thirty day period following issuance of the order, unless another time period is specified in a voluntary compliance agreement. If a voluntary compliance agreement is not entered into within that time period, and no appeal is filed, the penalties for the next fifteen day period shall be one hundred fifty percent (150%) of the initial penalties, and the penalties for the next fifteen day period shall be two hundred percent (200 %) the amount of the initial penalties. The intent of this subsection is to increase penalties beyond the maximum penalties stated in SVZC 14.406.500(A) as an additional means to achieve timely compliance. C. Citations shall be subject to a one -time penalty per violation. The Director retains authority to issue a subsequent notice and order or stop work order for continued non- compliance. In that event, additional penalties shall be imposed. D. Civil penalties shall be paid within twenty (20) days of service of the citation, notice and order or stop work order if not appealed. Payment of the civil penalties assessed under this chapter does not relieve a person found to be responsible for a code violation of his or her duty to correct the violation and/or to pay any and all civil penalties or other cost assessments issued pursuant to this chapter. E. The Director may suspend civil penalties pursuant to SVZC 14.406.500(A)(c) if the person responsible for a code violation has entered into a voluntary compliance agreement. Penalties shall begin to accrue again pursuant to the terms of the voluntary compliance agreement if any necessary permits applied for are denied, canceled or not pursued, or if corrective action identified in the voluntary compliance agreement is not completed as specified. F. Civil penalties assessed create a joint and several personal obligation in all persons responsible for a code violation. G. In addition to, or in lieu of, any other state or local provision for the recovery of civil penalties, the City may file for record with the Spokane County Auditor to claim a lien against the real property for the civil penalties assessed under this chapter if the violation was reasonably related to the real property. Any such lien can be filed under this chapter if, after the expiration of thirty (30) days from when a person responsible for a code violation receives the citation, notice and order or stop work order (excluding any appeal) any civil penalties remain unpaid in whole or in part. -19 Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language 14.406.520 - Civil penalties — duty to comply. Persons responsible for code violation have a duty to notify the Director in writing of any actions taken to achieve compliance with the notice and order. For purposes of assessing civil penalties, a violation shall be considered ongoing until the person responsible for a code violation has cone into compliance with the notice and order, voluntary compliance agreement, or stop work order, and has provided sufficient evidence of such compliance. 1.4.406.530 - Civil penalties — community service. The Director is authorized to allow a person responsible for a code violation who accumulates civil penalties as a result of a citation, notice and order, or for failure to comply with the terms of a voluntary compliance agreement, to voluntarily participate in community service projects in lieu of paying all or a portion of the assessed civil penalties. Community service may include, but is not limited to; abatement, restoration or education programs designed to clean up the City. The amount of community service will reasonably relate to the comparable value of penalties assessed against the violator. The rate at which civil penalties are worked off under this subsection is $ 10.00 per hour. The Director shall take into consideration the severity of the violation, any history of previous violations and practical and legal impediments in considering whether to allow community service in lieu of paying penalties. 14.406.540 - Civil penalties — waivers. A. Civil penalties may be waived or reimbursed to the payor by the Director under the following circumstances: 1. The citation, notice and order or stop work order was issued in error; or 2. The civil penalties were assessed in error; or 3. Notice failed to reach the property owner due to unusual circumstances; or 4. New, material information warranting waiver has been presented to the Director since the citation, notice and order or stop work order was issued. B. The Director shall state in writing the basis for a decision to waive penalties, and such statement shall become part of the public record unless privileged. 14.406.550 - Civil penalties — critical areas. A. The code compliance provisions for critical areas are intended to protect critical areas and the general public from harm, to meet the requirements of RCW 36.70A (the Growth Management Act), and to farther the remedial purposes of this chapter. To achieve this, persons responsible for a code violation will not only be required to restore damaged critical areas, insofar as that is possible and beneficial, but will also be required to pay a civil penalty for the redress of ecological, recreation, and economic values lost or damaged due to their unlawful action. B. The provisions of S \'ZC 14.406.550 are in addition to, and not in lieu of any other penalty, sanction or right of action provided by law for other related violations. -20- Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language C. Where feasible, the owner of the land on which the violation occurred shall be named as a party to the notice and order. In addition to any other persons who may be liable for a violation, and subject to the exceptions provided in SVZC 14.406.090, the owner shall be jointly and severally liable for the restoration of a site and payment of any civil penalties imposed. D. For the purposes of SVZC 14.406.550, violation of the critical area ordinance means: 1. The violation of any provision of City Ordinance number 49 (Interim Critical Areas Ordinance), or of the administrative rules promulgated thereunder. Ordinance number 49 adopted Spokane County Code, chapter 11.20, as its interim critical areas regulations; 2. The failure to obtain a permit required for work in a critical area; or 3. The failure to comply with the conditions of any permit, approval, terms and conditions of any sensitive area tract or setback area, easement, covenant, plat restriction or binding assurance, or any notice and order, stop work order, mitigation plan, contract or agreement issued or concluded pursuant to the above- mentioned provisions. E. Any person in violation of the critical areas ordinance may be subject to civil penalties, costs and fees as follows: 1. According to the civil penalty schedule under SVZC 14.406.500, provided that the exact amount of the penalty per violation shall be determined by the Director based on the physical extent and severity of the violation; or 2. The greater of: 14.406.560 - Cost recovery. a. an amount determined to be equivalent to the economic benefit that the person responsible for a code violation derives from the violation, measured as the total of: 1) the resulting increase in market value of the property; 2) the value received by the person responsible for a code violation; 3) the savings of construction costs realized by the person responsible for a code violation as a result of performing any act in violation of the critical area ordinance; or b. code compliance costs (such amount not to exceed $25,000) incurred by the city to enforce City Ordinance number 49 (Interim Critical Areas Ordinance) against the person responsible for a code violation. A. In addition to the other remedies available under this chapter, upon issuance of a notice and order or stop work order the Director shall charge the costs of pursuing code compliance and 21- Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19-03 with new language abatement incurred to correct a code violation to the person responsible for a code violation. These charges include: 1. Reasonable legal fees and costs. For purposes of SVZC 14.406, "reasonable legal fees and costs" shall include, but is not limited to legal personnel costs, both direct and indirect, incurred to enforce the provisions of this chapter; and 2. Administrative personnel costs. For purposes of SVZC 14.406, "administrative personnel costs" shall include, but are not limited to administrative employee costs, both direct and indirect, incurred to enforce the provisions of this chapter; and 3. Abatement costs. The Director shall keep an itemized account of costs incurred by the City in the abatement of a violation under this chapter. Upon completion of any abatement work, the Director shall prepare a report specifying a legal description of the real property where the abatement work occurred, the work done for each property, the itemized costs of the work, and interest accrued; and 4. Actual expenses and costs of the City in preparing notices, specifications and contracts; in accomplishing or contracting and inspecting the work; and the costs of any required printing, mailing or court filing fees. 13. Such costs are due and payable thirty (30) days from mailing of the invoice. C. All costs assessed by the City in pursuing code compliance and/or abatement create a joint and several personal obligation in all persons responsible for a code violation. The Office of the City Attorney, on behalf of the City, may collect the costs of code compliance efforts by any appropriate legal means. D. In addition to, or in lieu of any other state or local provision for the recovery of costs, the City may, after abating a code violation pursuant to this chapter, file for record with the Spokane County Auditor to claim a lien against the real property for the assessed costs identified in this chapter if the violation was reasonably related to the real property. Such a lien shall be substantially in accordance with the provision regarding mechanic's liens in R.CW 60.04, and said lien shall be foreclosed in the same manner as such liens. E. Any lien filed shall be subordinate to all previously existing special assessment liens imposed on the same property and shall be superior to all other liens, except for state and county taxes, with which it shall share priority. The City of Spokane Valley may cause a claim for lien to be fled for record within ninety (90) days from the later of the date that the monetary penalty is due or the date the work is completed or the nuisance abated. The claim of lien shall contain sufficient information regarding the notice of violation, a description of the property to be charged with the lien, the owner of record, and the total of the lien. Any such claim of lien may be amended from time to time to reflect changed conditions. Any such lien shall bind the affected property for the period as provided for by state law. 14.406.570 — Collection of civil penalties, fees and costs. The Director may use the services of a collection agency in order to collect any civil penalties, fees, costs and /or interest owing under this chapter. - 22 - Proposed stall' draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell $ -19 -03 with new language 14.406.580 - Abatement. A. Emergency Abatement: Whenever a condition, the continued existence of which constitutes an immediate threat to the public health, safety or welfare or to the environment, is found to exist, the City may summarily and without prior notice abate the condition. Notice of such abatement, including the reason for it, shall be given to the person responsible for the violation as soon as reasonably possible after the abatement. B. Judicial Abatement: The City may seek a judicial abatement order from Spokane County Superior Court, as deemed necessary, to .abate a condition which continues to be a violation of the Spokane Valley Zoning Code where other methods of remedial action have failed to produce compliance. C. The City shall seek to recover the costs of abatement as authorized by this chapter. 14.406.590 - Code compliance abatement fund — authorized. A. All monies collected from the assessment of civil penalties and for abatement costs and work shall be allocated to support expenditures for abatement, and shall be accounted for through either creation of an account in the fund for such abatement costs, or other appropriate accounting mechanism. B. Funds needed to abate a violation by the City shall be obtained from the abatement fund. 14.406.600 - Administrative appeals — standing - filing requirements. A. Any person issued a citation or named in a notice and order or stop work order, and any owner of the land where the violation for which a citation, notice and order or stop work order is issued occurred, may file a notice of appeal of the following: 1. citation; 2. notice and order; 3. stop work order; B. A complainant who requests to be kept advised pursuant to SVZC 14.406.060(T) may appeal a determination of compliance by the Director. C. A person that does not meet the requirements of SVZC 14.406.600(A) or (B) does not have standing to appeal under this chapter. D. Any person filing an appeal under this chapter who was issued a citation or order, or is the owner of the land where the violation occurred, shall do so by obtaining the appeal form from the Director and filing the completed appeal form with the Director within twenty (20) days of service of the citation, notice and order or stop work order. A complainant who appeals the determination of compliance by the Director must file any such appeal within twenty (20) days of service of the determination of. compliance. Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell •8 -19 -03 with new language E. Any administrative appeal considered under this chapter will be determined by the Hearings Examiner pursuant to Spokane. Valley Ordinance 57, unless in conflict with specific provisions of this chapter, in which case the specific provisions of this chapter shall control. 14.406.610 — Administrative appeal — notice of hearing. Upon receipt of a notice of appeal, the City shall provide a hearing notice stating the time, location and date of the hearing on the issues identified on the violation, notice and order or stop work order. The City shall mail this notice by certified mail, five -day return receipt requested, to the person(s) responsible for a violation. 14.406.620 - Administrative appeal — procedures. A. The appeal hearing shall be conducted as provided for in Spokane Valley Ordinance 57 as adopted or hereafter amended. B. Enforcement of any notice and order of the Director issued pursuant to this chapter shall be stayed as to the appealing party during the pendency of any administrative appeal under this chapter,' except when the Director determines that the violation poses a significant threat of immediate and/or irreparable harm and so states in any notice and order issued. C. Enforcement of any stop work order issued pursuant to this chapter shall not be stayed during the pendency of any administrative appeal under this title. t "1 D. When multiple citations, notices and order or stop work orders have been issued simultaneously for any set of facts constituting a violation, only one appeal of all the enforcement actions shall be allowed. 14.406.630 — Administrative appeal — final order. A. Following review of the evidence submitted, the Hearing Examiner shall issue a written order containing findings and conclusions, and shall affirm or modify the citation, notice and order or stop work order previously issued if the Hearing Examiner finds that a violation has occurred. The Hearing Examiner shall uphold the appeal and reverse the citation or order if the examiner finds that no violation occurred. B. If an owner of property where the violation has occurred has affirmatively demonstrated that the violation was caused by another person or entity not the agent of the property owner and without the owner's knowledge or consent, such property owner shall be responsible only for abatement of the violation. Strict compliance with permit requirements may he waived regarding the performance of such abatement in order to avoid doing substantial injustice to a non - culpable property owner. C. The Hearing Examiner's final order shall be final and conclusive unless proceedings for review of the decision are properly commenced in Spokane County Superior Court within the time period specified by applicable state law. D. A final order by the Hearing Examiner affirming, revoking or modifying a citation, notice and order or stop work order is a final decision. - 24 - Proposed staff draft Zoning Code Compliance for first reading 8 -26 -03 — C. Driskell 8 -19 -03 with new language 14.406.640 - Judicial enforcement — petition for enforcement. A. In addition to ,any other judicial or administrative remedy, the Office of the City Attorney, on behalf of the City, may seek enforcement of the Director's order by filing a petition for enforcement in Spokane County Superior Court. B. The petition must name as respondent each person against whom the Director seeks to obtain civil enforcement. C. A petition for civil enforcement may request monetary relief, declaratory relief, temporary or permanent injunctive relief, and any other civil remedy provided by law, or any combination of the foregoing. 14.406.650 - Severability. If any section, sentence, clause or phrase of this ordinance, or any regulation, rule or order adopted pursuant to the authority thereof be determined invalid or unconstitutional, it shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. 14.406.660 — Effective date. This ordinance shall be in full force and effect five (5) days after publication of this ordinance or a summary thereof in the official newspaper of the City as provided by law. CITY OF SPOKANE ''ALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 57 -A AN ORDB' ANCE OF THE CffY OF SPOKANE VALLEY, SPOKANE COUNTY, WASBJT TON, AMENDING. ORDINANCE NO. 57 ENTITLED AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WAS.FQNGTON, ESTABLISILIN T.H.E. OFFICE Or THE BEARING EXAMINER, ADOPTING A FC£ARING EXAMINER SYSTEM CONFERINC J IJIi1.S ICT!ON AND PROVIDE FOR RULES AND REGULATIONS." WHEREAS, following the incorporation of the City of Spokane Valley, various Ordinances have been reviewed and revised in an effort to facilitate the operations of the City; and WHEREAS, upon review, it has been determined that Ordinance No. 57 relating to the hearing examiner system should he amended in order to clarify and modify the legal ef=fect and appeal process for certain land use decisions; and WHEREAS, s uch modifications will facilitate the land use hearing and permitting process in a manner that best serves the interest of the community. • NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane Counry, Washington, do ordain as follows: Section 1. Amenditeut,CJrdinance No. 57, Section 11 is hereby amended as follows. __ -H oeIetfd; _ ection 11, Decision -Le a gl Effect. The Examiner will receive and ex arninc available information, ]make site visits, take official notice of matters, conduct public bearings, prepare a record thereof, and enter findings, decision or recommendations as provided in this section, A. The decision of the Examiner on the following matters shall be final and conclusive and have the effect of a final decision of the City Council_ 1. Applications for variances; 2. Conditional arc permits; 1 Special use permits; 4. Shoreline Permits, when a public hearing is required; 5_ Preliminary Rlal : 6. __Appeals from any administrative decision of the Department of Planning in the administrati enforcement ofthe Zoniris Cock or other land use code or regulation; r , '{ DEt Eta d 9 C:1Doeuma,t5 and S tt n els]arsoiaocal Ssttingsl'I`cmporury tmenLee FleskOLKAAlOrdinanco No S? A -dnc • — -{ Formatted: t3uIIQu and Numbering 1 1 7. Appeals on Statc Environmental Policy Act determinations. - — --( Formatted: But1ers and Numbering B. The decision of the Examiner on the following matters shall be given the effect of an administrative decision appealable to the City Council: 1. Site specific zone changes of property, including any environmental determination (under SEPA); 2. Planned unit developments, including any environmental determination (under SEPA); and Any other applications or appeals that the City Council may refer by motion or ordinance, specifically declaring the Hearing Examiner can he appealed to the City Council. C. The decision of a matter listed in Paragraph A above, except for a shoreline permit, shall be given the effect of an administrative decision appealable to the City Council., if it is related to a decision on a matter listed in Paragraph B that was heard concurrently and that is appealed to the City. D. In addition to the powers sci forth herein, the Examiner may: . 1. Regulate the course of thc hearing in accord with this ordinance and other applicable laws and rules; 2. Hold conferences for the settlement or simplification of issues by consent of the parties; 3. Dispose of procedural requests or similar matters; 4. Take such other action authorized by ordinance. E. The Examiner is hereby empowered to act in lieu of the Board of Adjustment, the Planning Commission, and such other official, boards or commissions as may be assigned, for land use issues listed in Section 9, and other land use issues authorized by the City Council. Wherever existing ordinances, codes or policies authorize or direct the City Council, Board of Adjustment, Planning Commission or other official, boards or commissions to undertake certain activities which the Examiner has been assigned, such ordinances, codes or policies will be construed to refer to thc Examiner. Section 2. Amendment. Ordinance No. 57, Section 15 is hereby amended as follows. Section 15. Appeals. Unless provided otherwise by this Ordinance or statute (see RCW Chapter 36.70C and RCW Chapter 90.58), any aggrieved person may submit a written appeal of the Examiner's Decision to the Council within fourteen (14) calendar days from the date the final decision of the Examiner is rendered. Forpurposes of this section an "a,taricved person" means aq_inclividual gr entity who appeared and submitted testimony or evidence at the hearing before the F, xarnincr. The Council shall hold a closed -record hearing on the appeal. C:lDoeumenis and Scttings'slarurn\Local Settings\Tem.porary Internet FilesIOLKAA \Ordinance No 57 A.doc Deleted: <ttrPrctiminary plms. including any environmental determination (under SEPA); raidl 4 effect. Such written appeal shall allege specific errors of law or fact, specific procedural errors or errors in the interpretation of the Comprehensive Plan or development regulations. Upon such written appeal being filed within the time period allotted and upon payment of fees as required, a hearing will be held by the City Council. Such hearing will be held in accord with appeal procedures adopted by the City Council. If the Examiner has recommended approvals of the proposal, such recommendation will be considered by the City Council at the sane time as the consideration of the appeal. The Examiner's decision will be presumed to be correct and supported by the record and law. Where the Examiner's Decision recommends a royal of the m.osal and no appeal has been filed within the time period set. forth above. City staff shall prepare an ordinance (or other appropriate leeal document) that completes the Examiner's Decision through final legislative action of the City Council. Such final action. for zoning purposes, is considered a "official control" of the City by exercise of it's zoning and planning authority pursuant tq Washington law. . . Section 3. Effect. Except as set forth above, Ordinance No. 57 shall remain in full force and Section 4. Scverability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 5. Effective Date. This Ordinance shall be in full force and effect five (5) days after date of publication of this Ordinance or a summary thereof in the official newspaper of the. City. PASSED by the City Council this da�of September 2003. , —( Deleted: t ATTEST: Mayor, Michael DeVleming City Clerk, Chris Bainbridge C:\Documal s and Settings \slarsnn\Local Settings\Temporuy Internet r1es1OL1:AA \Ordinance No 57 A.doc Deleted:1 ) Approved as to Form: Interim City Attorney, Stanley M. Schwartz Date of Publication: Effective Date: C:1Documents and Settingslslarson \Local Settings\Tcmparary Internet Eles \OL.KAA1Ordinunce No 57 A.doc Meeting Date: September 9, 2003 City Manager Sign -off: Item: Check all that apply_ C] consent El old business XX new business ❑ public hearing information ❑ admin. report pending legislation AGENDA ITEM TITLE ' Proposed Junk Vehicle Ordinance GOVERNING LEGISLATION: RCW 4612.101 CITY OF SPOKANE VALLEY Request t for Council Action PREVIOUS COUNCIL ACTION TAKEN: First reading May 27, 2003, tabled by Council at that time for additional research and community discussion. Study session 9 -2 -03_ BACKGROUND: After the proposed ordinance was tabled on May 27, 2003 extensive work was done to research similar ordinances from other jurisdictions, to meet with representatives of potentially affected citizens, and to draft new abatement provisions. The Planning Commission conducted a public hearing at which testimony was taken_ The revised draft had nearly unanimous approval from those attending and comment at the public hearing August 14, 2003. The attached draft is the recommendation of the Planning 'Commission, The Council had a study session on this 9-2-03, at vvhich no members of the public appeared. One change was made to Section 4 (d) to add language that the applicable zoning code sections are also amended to reflect the new junk vehicle ordinance, with an attachment. The new portions are underlined_ OPTIONS: Not adopt a junk vehicle ordinance and attempt to enforce the existing ordinance adopted from Spokane County, which does not promote abatement. RECOMMENDED ACTION OR MOTION: Move to place the proposed junk vehicle ordinance draft on the September 23, 2003 regular,meeting agenda for second reading. BUDGET /FINANCIAL IMPACTS: This ordinance is intended, and expected to generate a small amount of revenue, excluding the cost to the City of the Code Enforcement Officer. STAFF CONTACT: Cary P. Driskell or Marina Sukup ATTACHMENTS: Proposed administrative draft junk vehicle ordinance; and amended sections of Zoning Code for Urban Residential zones to remove portions on storage of junk vehicles. Proposed administrative draft —C. Driskell September 4, 2003 Draft 8 CITY OF SPOKANE VALLEY, WASHINGTON ORDINANCE NO. 03 -067 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON, REGULATING TIIE STORAGE OF JUNK VEHICLES ON PRIVATE PROPERTY. WHEREAS, there currently exists within the City a large number of private properties where junk vehicles are being permanently stored in violation of existing Zoning Code provisions; WHEREAS, the storage of unlicensed and inoperable motor vehicles on private property creates a public nuisance and interferes with the reasonable use and enjoyment of property; 'WHEREAS, the storage of junk vehicles on private property poses a threat to the health, welfare and safety of the citizens of the City, and the City desires to address this problem; WHEREAS, enforcement of public nuisances is within the police powers of the City of Spokane Valley; Washington; and WHEREAS, the City finds and declares that it is in the best interest of the residents and inhabitants of the City to remove junk vehicles as public nuisances, and provide for their abatement through due process. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SPOKANE VALLEY, WASHINGTON 170 ORDAIN AS FOLLOWS: SECTION 1 — Purpose and intent. The City recognizes the benefit and enjoyment individuals receive from the repair and rehabilitation of old or inoperable vehicles. It is, however, the purpose and intent of this ordinance to provide for the removal of junk vehicles from private property that create an attractive nuisance and negative aesthetic impact upon property and the community. SECTION 2 — Definitions. A. "City" means the City of Spokane Valley, Washington. B. "Code Enforcement Officer" means a regular or specially commissioned officer so designated by the Director of Community Development for the City. c /cpd work files /ordinances /junk vehicles /junk vehicle ordinance - proposed admin draft A for first reading 9 -9 -03 -t- Proposed administrative draft — C. Driskell September 4, 2003 Draft 8 C. "Director" means the City Manager or designee, who is anticipated to be Director of Community Development for the City. D. "Hearing Examiner" means the hearing examiner for the City. E. "Impound" for the purposes of this ordinance means to take and hold a vehicle in legal custody. F. "inoperable" means incapable of being operated legally on a public highway, including but not limited to, not having a valid, current registration plate or current certificate of registration. G. "Junk vehicle" means a vehicle substantially meeting at least three of the following criteria: 1. Is three years old or older; 2. Is extensively damaged, such damage including but not limited to any of the following: a broken window or windshield, missing wheels, tires, motor, or transmission; 3. Is apparently inoperable; 4. Has an approximate fair market value equal only to the approximate value of the scrap in it. H. "Person(s) responsible for a violation" means: 1. The land owner where the junk vehicle is located as shown on the last equalized assessment roll; and 2. The last registered owner of the vehicle, unless the owner in the transfer of ownership of the vehicle has complied with RCW 46.12.101; and 3. The legal owner of the vehicle. 1. "Vehicle" for the purposes of this ordinance includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, including bicycles. The term does not include devices other than bicycles moved by human or animal power or used exclusively upon stationary rails or tracks, as set forth in RCW 46.04.670. SECTION 3 — Abatement and removal of junk vehicles from private property. Except as provided in Section 4, all junk vehicles placed, stored or permitted to be located on private property within the City limits are public nuisances to be abated as provided in this ordinance. clepd work files/ordinances /junk vchic.Ies/junk vehicle ordinance - proposed admin draft 8 for first reading 9-9 -03 - ')- Proposed administrative draft — C. Driskell September 4, 2003 Draft 8 SECTION 4 — Exceptions. This ordinance does not apply to: A. A vehicle or part thereof that is completely enclosed within a building in a lawful manner where it is not visible from the street or other public or private property; B. A vehicle or part thereof that is stored or parked in a lawful manner on private property in connection with the business of a licensed dismantler or licensed vehicle dealer, and is fenced according to the provisions of RC`V 46.80.130; C. A junk vehicle does not include a vehicle which is in the process of being repaired, as evidenced by the good faith efforts of the vehicle owner. This exception shall include having up to one "parts" vehicle, from which parts are being salvaged concurrent with the repair process for the vehicle being excepted from compliance in this subsection. Good faith efforts of repair can include producing invoices showing work or parts purchased for repair or renovation within thirty days prior to issuance of the notice of violation, or a declaration under penalty of perjury that the vehicle is in the process of being repaired and has been worked on within thirty days prior to issuance of the notice of violation. This exception allows up to sixty (60) days for good faith repair. Upon good cause shown, the Director shall have the discretion to grant one additional sixty (60) day exception period to this ordinance. Under no circumstance shall any good faith efforts of repair extend for more than 120 days, after which time this exception shall no longer apply. This exception shall apply to one vehicle and one parts vehicle per parcel of land per calendar year. D. There shall be allowed as exceptions to this ordinance up to two (2) junk vehicles in UR 3.5 and UR 7 zones, so long as they are completely sight - screened by maintained Type 1 or II landscaping, a maintained landscaped berm, or fencing. Types I and II landscaping are described in Spokane Valley Zoning Code Section 14.806.060. Junk vehicles allowed by this exception are restricted to only the UR 3.5 and UR 7 zones. Concurrent with the ado tion of this Ordinance S okane Valle Zonin ' Code • rovisions 14.616.355 (UR -3.5) 14.618.355 (UR -7), 14.620.355 (UR -12) and 14.622.355 (UR -22) shall be amended as set forth in Attachments A to this Ordinance SECTION 5 — Violation notice: A. A Code Enforcement Officer is authorized to issue and serve a notice of violation upon reasonable belief that a violation of one or more provisions of this ordinance has occurred. B. The notice of violation shall be issued to the person(s) responsible for a violation of this ordinance. The last legal and registered owner need not be notified if the vehicle is in such condition that identification numbers are not available to determine ownership. C. The notice of violation may be served by means of personal service, or by mailing a copy of the notice of violation to the person(s) responsible for a code violation to his or c /cpd work files /ordinances /junk vehicles /junk vehicle ordinance - proposed admin draft 8 for first reading 9 -9 -03 -1- Proposed administrative draft — C. Driskell September 4, 2003 Draft 8 her last known mailing address as determined by the Code Enforcement Officer by certified mail, with a five -day return receipt requested. Proof of service shall be made by a written declaration under penalty of perjury by the person affecting the service, declaring the time, date, place of service, and the manner by which service was made. D. The notice of violation shall contain substantially the following information: 1. The name and address of the person to whom the notice of violation is issued; 2. The location of the subject property by address or other description sufficient to identify the subject property; 3. A description of the vehicle and its location, and the reasons the City deems it to be a public nuisance in violation of this ordinance; 4. A description of the corrective action necessary to eliminate the violation; 5. That the corrective action must be performed within fifteen (15) days from the date of service of the notice of violation; 6. That a hearing will be held by the Hearing Examiner, including the date and time of the hearing, pursuant to Section 6 of this Ordinance; 7. A statement that if the person(s) responsible ' for a violation fails to complete the corrective action, the City or its designee shall initiate judicial abatement proceedings to remove, impound and dispose of the vehicle, and will assess all costs of administration, court- related costs and removal against the person(s) responsible for a violation after a hearing by the Hearing Examiner in which the Hearing Examiner determines that there has been a violation of this Ordinance; 8. A statement that the land owner upon which the vehicle is located may appear in person at the hearing, or provide a written statement to the Hearing Examiner denying responsibility for the presence of the vehicle on the land, with his or her reasons for the denial; 9. A statement that a person responsible for a violation who voluntarily complies with or allows abatement within fifteen days of receiving a notice of violation shall not be assessed a civil monetary penalty; and 10. If the Hearing Examiner determines the appellant is a person responsible for a violation, a $250 civil monetary penalty will be assessed. SECTION 6 - Hearing on notice of violation. ckpd work files /ordinances /junk vehicles /junk vehicle ordinance - proposed admin draft 8 for first reading 9 -9 -03 -4- Proposed administrative draft — C. Driskell September 4, 2003 Draft 8 A. A person receiving a notice of violation shall have fifteen (15) days from the date of service of the notice of violation to voluntarily abate the junk vehicle(s) to avoid imposition of a civil monetary penalty pursuant to Section 8 of this Ordinance. A hearing shall be automatically scheduled, to be held after expiration of fifteen (l 5) days service of the notice of violation. The notice of violation shall state the time, location and date of the hearing on the issue of imposition of a civil monetary penalty. B. The person(s) responsible for a violation may appear in person at a hearing or by submitting a written statement for consideration. If the land owner denies responsibility for the vehicle being on his or her land, and has provided sufficient written evidence in support of the denial, the Hearing Examiner is authorized to determine, based upon available evidence, whether the land owner is responsible for, or acquiesced to, the presence of the vehicle. if the land owner has not acquiesced in the vehicle's presence, the Hearing Examiner's order shall state such. In that instance, the land owner shall sign a written permission form at the time of hearing allowing the City to immediately remove the junk vehicle from his or her real property. If the land owner fails to sign the permission form, he or she will be determined to be acquiescing in the vehicle's-presence on the real property. C. If the Hearing Examiner determines that a land owner is not responsible for a vehicle being on his or her property, the City shall not assess costs of administration (including civil monetary penalties) or nuisance abatement against the real property where the vehicle is located. D. The Hearing Examiner may uphold, modify or revoke the notice of violation as appropriate. The Hearing Examiner shall provide written findings of fact and order within five business days of the conclusion of the hearing. The Hearing Examiner's order shall constitute a final action. E. If the Hearing Examiner upholds the notice of violation, the I- Iearing Examiner shall impose a civil monetary penalty of S250. F. A copy of the Hearing Examiner's order shall be served upon the person(s) to whom it is directed, either personally or by mailing a copy of the order by certified mail, with a five -day return receipt requested, to such person at his or her last known address as determined by the code compliance officer. Proof of service shall be made by a written declaration under penalty of perjury by the person effecting service, stating the time, date, location and manner by which service was made. SECTION 7 — Abatement — costs — liens. A. . Emergency Abatement: Whenever a condition, the continued existence of which constitutes an immediate threat to the public health, safety or welfare or to the environment, is found to exist, the City may summarily and without prior notice abate the condition. Notice of such abatement, including the reason for it, shall be given to the person responsible for the violation as soon as reasonably possible after the abatement. cicpd work files /ordinances/junk vehicles/junk vehicle ordinance - proposed admin draft 8 for first reading 9 -9 -03 - 5 - Proposed administrative draft — C. Driskell September 4, 2003 Draft 8 B. Judicial Abatement: The City may seek a judicial abatement order from Spokane County Superior Court, as deemed necessary, to abate a condition which continues to be a violation of this Ordinance where other methods of remedial action have failed to produce compliance. C. The costs, including incidental expenses, of abating the violation shall be billed to the person responsible for the violation and shall become due and payable to the City within ten (10) calendar days after completion of abatement. The term incidental expenses includes but is not limited to personnel costs, both direct and indirect and including attorneys fees; costs incurred in documenting the violation; hauling, storage and disposal expenses; and actual expenses and costs of the City in preparing notices, specifications and contracts, and in accomplishing and/or contracting and inspecting the work; and the costs of any required printing and mailing. All such costs shall constitute a lien against the affected property and may be subject to collection following a court judgment. Such a lien shall be substantially in accordance with the provision regarding mechanic's liens in RCW 60.04, and said lien shall be foreclosed in the same manner as such liens. D. The lien shall be subordinate to all previously existing special assessment liens imposed on the same property and shall be superior to all other liens, except for state and county taxes, with which it shall share priority. The City of Spokane Valley may cause a claim for lien to be filed for record within ninety (90) days from the later of the date that the monetary penalty is due or the date the work is completed or the nuisance abated. The claim of lien shall contain sufficient information regarding the notice of violation, a description of the property to be charged with the lien, the owner of record, and the total of the lien. Any such claim of lien may be amended from time to time to reflect changed conditions. Any such lien shall bind the affected property for the period as provided for by state law. E. The vehicle shall be disposed of to a licensed motor vehicle wrecker or hulk hauler with notice to the Washington State Patrol and the State Department of Licensing that the vehicle has been wrecked. Any vehicle or part thereof impounded pursuant to this ordinance shall be processed in accordance with the laws of the State of Washington. F. Any registered disposer under contract with the City for the impounding of vehicles shall comply with any administrative regulations relative to the handling and disposing of vehicles as may be promulgated by local authority or the Director. G. Costs of removal will not be assessed against the legal owner of the vehicle if the owner in the transfer of ownership of the vehicle has complied with RCW 46.12.101. SECTION 8 — Civil Monetary Penalties — Voluntary Compliance. if the Hearing Examiner determines that the person receiving the notice of violation is a person responsible for a violation, that person shall be assessed a civil monetary penalty in the amount of 5250.00. c/cpd work files/ordinances /junk vehicies/junk vehicle ordinance - proposed admin draft 8 for first reading 9 -9 -03 Proposed administrative draft — C. Driskcll September 4, 2003 Draft 8 SECTION 9 — Junk vehicle abatement program — authorized. The Director is authorized to develop a comprehensive junk vehicle abatement program. It is intended that this program will developed through community involvement. The purpose of the Junk Vehicle Abatement Program is to develop a program that is cost effective for the City, encourages voluntary compliance, and implements the goals of this Ordinance. SECTION 10 — Junk vehicle abatement fund — authorized. All monies collected from the assessment of civil penalties and for abatement costs and work shall be allocated to support expenditures for abatement, and shall be accounted for through either creation of an account for such abatement costs, or other appropriate accounting mechanism. Any monies collected under this ordinance that exceed an amount projected to cover anticipated abatement requirements within a six month time period shall be placed in the general fund. SUCTION 11 — Severability. If any section, sentence, clause or phrase of this ordinance, or any regulation, rule or order adopted pursuant to the authority thereof be determined invalid or unconstitutional, it shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. SECTION 12 — Effective date. This ordinance shall be in full force and effect five (5) days after publication of this ordinance or a summary thereof in the official newspaper of the City as provided by law. ATTEST: PASSED by the City Council this day of September, 2003. City Clerk, Christine Bainbridge Approved as to form: Interim City Attorney, Stanley M. Schwartz Date of publication: Effective date: Mayor, Michael DeVleming cicpd work files/ordinances /junk vehicles/junk vehicle ordinance - proposed admin draft 8 for first reading 9 -9 -03 -7- 14.616.355 Storage Standards All storage (including storage of recyclable materials) shall be wholly within a building or shall be screened from view from the surrounding properties and shall be accessory to the permitted use on the site. There shall be no storage in any required front yard or flanking street yard. Storage of inoperable and /or unlicensed vehicles is regulated by Spokane Valley Ordinance No- 67. he- private, neneentmeFeial -stoF remnants must- be-st'e over six (fir)- feet -in heightrecl-uir SI :14- 806,060- Draft Zonine Code Tn ve Do. I nn ATTACHMENT A Chapter 14.616 URBAN RESIDENTIAL -3.5 (UR -3.5) ZONE ely sight - screened yyea F_F0und- from- uses- allowed-in thisszone- with -a ype- 1 -or-II la ndseaped -a-r etel-y enclosed -bt ilcl<ing luding-doors. Vehicle-remnants-or-parts e d letely- enelesed- bu4kling -inelu -ding doors— lyenc -es Etuon -14806.O60. e-of-more than two -(.) inepeFable-or- es inside the-IJR adoption -plus -erne -year (September 1, 1993). Chapter 14.618 URBAN RESIDENTIAL -7 (UR -7) ZONE 14.61.8.355 Storage Standards All storage, except as provided below, shall be wholly within a building and shall be accessory to the permitted use on the site. Where proposed, recreational vehicle parking areas shall be paved and screened from view of adjoining properties. All multiple - family developments shall designate recreational vehicle parking areas. On lots where the primary use is a duplex or multi - family dwelling use, the private, nonconnmercial storage of inoperable or not- currently - licensed vehicles or remnants thereof shall be allowed within a permitted, completely enclosed building, including doors. Storage of inoperable and /or unlicensed vehicles is regulated by Spokane Valley Ordinance No. 67. On -lots where•the -p ' - _ ng the - private - senors ereial- storage - of -up-te two (2) inopefble-e - net- enrrent - - - - - • • = •erco€ shall be completely sight sc- reened -year round from uses allowed -in -this one with- a- feruee, rata stained- T-y- pe- l -er-fl lanel eaped area- e t= na- intained- landscaped -berm. There i r5: uehic- e - rem Rants-er partsside- a- vehiele-or -a sed building in . _ . - - - eig it-require -a (- landsc- a pin g- are- describ,,ed ect en leer - all outdoor- stefage -ef inope or not c-urfen icensed - vehicles -rin- lots -in- the- 141- 7-zene- where the prim e 41-ti farn4y- dwelling ai d -for outdoor storage of mere -than two -(-3) inoperable- ou-not curraently -lieer ' _ - - - - . ° . • _ ary use is a single family dwelling, nenc-enfer.n i (September 1, 1993). Senternher 9. 1.nn1 14.620.355 Storage Standards All storage shall be wholly within a building and shall be accessory to the permitted use on the site. Where proposed, recreational vehicle parking areas shall be paved and screened from view of adjoining properties. All multiple- family developments shall designate recreational vehicle parking areas. Storage of inoperable and /or unlicensed vehicles is regulated by Spokane Valley Ordinance No. 67. Thepriv nonconui er.eial- storage- of- ineper-a•ble -or net- ctintly- licensed isles -e tnan s theree€ ill- be- allewec it er tedd les ; i mss- Draft Zoning Code ATTACHMENT A Chapter 1.4.620 URBAN RESIDENTIAL -12 (UR -12) ZONE Chapter 14.622 URBAN RESIDENTIAL -22 (UR -22) ZONE 14.622.355 Storage Standards All storage shall be wholly within a building and shall be accessory to the permitted use on the site. Where proposed, recreational vehicle parking areas shall be paved and screened from view of adjoining properties. All multiple- family developments shall designate recreational vehicle parking areas. Storage of ino +enable and or unlicensed vehicles is re•ulated b Spokane Valle Ordinance No. 67. ante - private eneenu3nercial : terage-ef- i-noperable-er- net- eurrently-liccnsed-vchicics or- remnants thei'ee d-withzin-aa- 1, er- mittecl;_eempletely- enelosed4o lding, inc luding deers- Rentemher 9. 2003 Meeting Date: September_ 9, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business 0 new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation CITY OF SPOKANE VALLEY Request for Council Action AGENDA ITEM TITLE : CITY OF SPOKANE VALLEY, RESOLUTION NO. O3-. GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Council review and discussion at previous meetings and direction to staff. BACKGROUND: This resolution accepts the conveyance of park properties from Spokane County to the City of Spokane Valley and authorizes the City Manager to execute all necessary documents to complete the conveyance and assume ownership and control of the park properties. OPTIONS: Approve /Disapprove RECOMMENDED ACTION OR MOTION: Approve BUDGET /FINANCIAL IMPACTS: The cost of base services in the agreement is estimated at $656,137.87. There is S690,500.00 in the current 2003 budget for these expenses. Expenses will be offset by estimated revenues of $94,745.00. STAFF CONTACT: Mike Jackson, Parks and Recreation Director ATTACHMENTS Resolution CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 03 -045 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ACCEPTING THE CONVEYANCE OF PARK PROPERTIES FROM SPOKANE COUNTY INCLUDING THE ASSUMPTION OF ALL DUTIES AND AUTHORITY RELATED THERETO. WHEREAS, the City of Spokane Valley incorporated on March 31, 2003; WHEREAS, Spokane County is desirous of transferring to the City of Spokane Valley Spokane County park properties including land and improvements located within the City for the purpose of providing recreational opportunities to the City residents, visitors and guests; WHEREAS, the parties have executed a "Interlocal Agreement between Spokane County and the City of Spokane Valley Relating to the Ownership, Funding, Operation and Maintenance of Parks, Open Space, Recreation Facilities and Programs" ( "Interlocal Agreement ") with one of the purpose to provide for the transfer of park property from the. County to the City; WHEREAS, the County is making the transfer of park properties for an in consideration of the promises, covenants and consideration set forth in the Interlocal Agreement; and WHEREAS, as a condition of the conveyances, the City agrees to maintain the park properties in conformance with conditions imposed upon the properties through the conveyance documents as well as the Interlocal Agreement. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: The City of Spokane Valley accepts from Spokane County the conveyance of the following park properties for and in consideration of the matters set forth in the Interlocal Agreement with the intent to use, maintain and improve the same for the public benefit. The park properties are: I. Myrtle Point. 2. Opportunity Township Hall. 3. .Valley Mission Fool. 4. Valley Senior Center. 5. Valley Mission Park. 6. Valley Mission Park (South). 7. Balfour Park. 8. Brown's Park. 9. Edgecliff Park. 10. Western Dance Center. 1 Sullivan Park. 12. Mirabeau Point Park. 13. Park Road Park. 14. Park Road Pool. 15. Terrace View Park. 16. Terrace View Pool. 17. Castle Park. 1LSV• FSII Uscrslebainbrideel ebainbridgelResolutions l?003\Rcsolution Accept Conveyance Palk Properties,0OC The City agrees to operate, maintain and use the park properties consistent with conditions, if any, imposed upon the property through Interlocal Agreement and conveyance document. The City Council hereby accepts the grant, conveyance and transfer of the above identified properties and authorizes the City Manager to execute all necessary documents to complete the conveyance and assume ownership and control of the park properties within the City of Spokane Valley. ATTEST: Adopted this day of September , 2003. City Clerk Christine Bainbridge Approved as to Form: Interim City Attorney, Stanley M. Schwartz City of Spokane Valley Mayor Michael DeVleming \\ SV- FSIlUsers' v.: bainbrideel cbainbridge \Resolutions12003\Resolution Accept Conveyance Park Properties.DOC Meeting Date: August 12, 2003 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Interlocal Agreement between Spokane County and the City of Spokane Valley relating to ownership, funding and operation of parks, open space, recreation facilities and programs. GOVERNING LEGISLATION: RCW 35.02.225 PREVIOUS COUNCIL ACTION TAKEN: Council review and direction to staff. BACKGROUND: This agreement has been reviewed and revised numerous times by City and County staff and their legal representation. The agreement sets forth the responsibility and costs for operations, maintenance, repairs, improvements and recreation programs. OPTIONS: Approve or Disapprove CITY OF SPOKANE VALLEY Request for Council Action RECOMMENDED ACTION OR MOTION: Authorize City Manager to finalize and execute the agreement with Spokane County. BUDGET /FINANCIAL IMPACTS: The cost of base services in the agreement is estimated at $656,137.87. There is $690,500.00 in the current 2003 budget for these expenses. Expenses will be offset by estimated revenues of $94,745.00. STAFF CONTACT: Mike Jackson, Parks and Recreation Director ATTACHMENTS Interlocal Agreement NO. 3 0790 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF SPOKANE COUNTY, WASHINGTON IN THE MATTER OF EXECUTING AN ) AGREEMENT BETWEEN SPOKANE ) COUNTY AND THE CITY OF SPOKANE ) VALLEY RELATING TO THE ) RESOLUTION OWNERSHIP, FUNDING, OPERATION ) AND MAINTENANCE OF PARKS, OPEN ) SPACE, RECREATION FACILITIES AND ) PROGRAMS ) WHEREAS, pursuant to the provisions of RCW 36.32.120(6), the Board of County Commissioners, hereinafter referred to as `BOARD," has the care of County property and the management of County funds and business; and WHEREAS pursuant to the provisions of chapter 39.34 RCW, two or more public entities may. jointly cooperate between each other to perform functions which each may individually perform; and WHEREAS, pursuant to the provisions of RCW 35.02.225, a newly incorporated city may contract with a county to provide essential services; and WHEREAS, all local governmental authority and jurisdiction with respect to the newly incorporated area transfers from Spokane County to the City of Spokane Valley upon the official date of incorporation; and WHEREAS, the City of Spokane Valley desires to own, operate, and maintain parks, open space, recreation facilities and programs within its boundaries which were previously owned, operated and/or maintained by Spokane County except for that property commonly referred to as Buttercup; and WHEREAS, Spokane County desires to divest itself of ownership, operation, maintenance and financial responsibility for parks, open space, recreational facilities and programs inside the boundaries of the City of Spokane Valley except for that property commonly referred to as Buttercup; and WHEREAS, it is in the best interest of the public that the City of Spokane Valley and Spokane County take appropriate actions to ensure a smooth transition in the ownership, operation and maintenance of parks, open space, recreational facilities and programs to avoid disruption of service. 3 070 NOW, THEREFORE, BE IT HERE -BY RESOLVED by the Board of County Commissioners of Spokane County, that either the Chairman of the Board, or a majority of the Board, be and is hereby authorized to execute that document entitled "TNTERL OCAL AGREEMENT BETWEEN SPOKANE COUNTY AND T.RE CITY OF SPOKANE VALLEY RELATING TO THE OWNERSHIP, FUNDING, OPERATION AND MAINTENANCE OF PARKS, OPEN SPACE, RECREATION FACILITIES AND PROGRAMS" pursuant to which, under certain terms and conditions Spokane County will convey to the City of Spokane Valley certain properties located with their boundaries which were used by the County for parks, open space and recreational facilities and the City of Spokane Valley will contract with Spokane County to maintain and operate the Properties to be transferred from April 1, 2003through December 31, 2004. PASSED AND ADOPTED this day o 003. ATTEST: VICKY M. DALTON CLERK OF THE BOARD it tvd ey CitytkesoluticasAvalleppmks.doc Page 2 of 2 niela Erickson, Deputy BOARD OF COUNTY COMtiIISSIONERS OF SPOKANE, COUNTY, WASHINGTON Return to: Parks Intel Agreement Danicla Erickson Clerk of the Board 1116 West Broadway Spokane, Washington 99260 INTERLOCAL, AGREEMENT BETWEEN SPOKANE COUNTY 2 AND THE CITY OF SPOKANE VALLEY RELATING TO THE OWNERSHIP, FUNDING, 3 OPERATION AND MAINTENANCE OF PARKS, OPEN SPACE, RECREATION FACILITIES 4 AND PROGRAMS 3 0790 5 6 THIS AGREEMENT, made and entered into by and between Spokane County, a political 7 subdivision of the State of Washington, having offices for the transaction of business at 1116 West 8 Broadway, Spokane Washington 99260, hereinafter referred to as "COUNTY," and the City of Spokane 9 Valley, a municipal corporation of the State of Washington, having offices for the transaction of business 10 at the Redwood Plaza, 11707 East Sprague Avenue, Suite 106, Spokane Valley, Washington 99206, 11 hereinafter referred to as "CITY" jointly hereinafter referred to as the "PARTIES." 12 13 WITNESSETH 14 15 WHEREAS, pursuant to the provisions of RCW 36.32.120(6), the Board of County 16 Commissioners, hereinafter referred to as "BOARD," has the care of County property and the 17 management of County funds and business; and 1 8 19 WHEREAS pursuant to the provisions of chapter 39.34 RCW, two or more public entities may 20 jointly cooperate between each other to perform functions which each may individually perform; and 21 22 WHEREAS, pursuant to the provisions of RCW 35.02.225, a newly incorporated city may 23 contract with a county to provide essential services; and 24 25 WHEREAS, all local governmental authority and jurisdiction with respect to the newly 26 incorporated area transfers from Spokane County to the City of Spokane Valley upon the official date of 27 incorporation; and 28 29 WHEREAS, the City of Spokane Valley desires to o�sm operate, and maintain parks, open space, 30 recreation facilities and programs within its boundaries which were previously owned, operated and/or 31 maintained by Spokane County; and 32 Page I of 12 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 'v 44 45 WHEREAS, Spokane County desires to divest itself of ownership, operation, maintenance and financial responsibility for parks, open space, recreational facilities and programs inside the boundaries of the City of Spokane Valley; and WHEREAS, it is in the best interest of the public that the City of Spokane Valley and Spokane County take appropriate actions to ensure a smooth transition in the ownership, operation and maintenance of parks open space, recreational facilities and programs to avoid disruption of service. NOW THEREFORE for and in consideration of the mutual promises set forth hereinafter, the PARTIES do mutually agree as follows: SECTION NO. 1: CONVEYANCE 1.1 COUNTY shall convey to CITY by individual quit claim deeds in "as -is condition" all of its rights, title and interests, and when possible assign any leasehold interest, license, easement or shared use responsibility, in the parks, open space(s) and recreation sites, hereinafter collectively referred to as "Properties," or individually referred to as "Property," listed in subsection 1.2 hereinafter, as well as all personal property permanently affixed thereto such as buildings, pools, play equipment and ball field improvements. Consideration for each transfer will be $1.00 and other consideration more particularly described hereinafter. 1.2 The Properties to be transferred include: Myrtle Point Opportunity Township Hall Valley Mission Pool Valley Senior Center Valley Mission Park Valley Mission Park (South) Balfour Park Brown's Park Edgecliff Park Western Dance Center Sullivan Park Closing costs shall be apportioned according to custom in Spokane County. Mirabeau Point Park Park Road Park Park Road Pool Terrace View Park Terrace View Pool Castle Park PARTIES recognize that the COUNTY acquired Properties with public funds and also from private gifts /donations. CITY agrees to comply with any conditions imposed upon COUNTY by its use of public funds in acquisition or improvement of any Property or conditions imposed on private donations used to acquire or improvement any Property. A condition precedent to the transfer of any Property which the COUNTY acquired or improved with grant moneys from the Washington State Interagency Committee for Outdoor Recreation ( "IAC ") will be (i) CITY'S adoption of a Park Plan and (ii) JAC'S approval of the transfer. CITY agrees to timely adopt a Park Plan and apply for IAC approval of the Park Plan. Each Party shall pay its own expenses in conjunction with the transfer of any Property including but not limited to fees and expenses of agents representatives, counsel and accountants. Parks Interlocal Agreement Page 2 of 12 1 ALTA Title insurance shall be at the sole cost of CITY. 2 3 PARTIES shall mutually agree to a closing date for any Property. Provided, however, the closing 4 date(s) shall not affect CITY'S obligation to maintain, operate, repair, and improve the Properties as 5 of April 1, 2003. 6 7 To the extent required by existing agreement between COUNTY and third parties or any recorded 8 documents, (1) CITY agrees and covenants to own, operate and maintain the Properties, as public 9 parks, public recreational facilities, and/or public open spaces respectively, and (2) CITY may trade 10 any Property or part thereof for another public park, public recreational property, and/or public open 11 space of equal or greater value. Transfers of any Property initially acquired by COUNTY with 12 moneys from Washington State Interagency Committee for Outdoor Recreation will require IAC 13 approval. 14 15 When considering the sale of park property, the CITY will rely upon the notice provisions and public 16 comment opportunity then used by the CITY when considering the disposal of any other CITY owned 17 real estate. 18 19 CITY agrees and covenants that it will not in any way limit or restrict access to and use of any 20 Property by non-CITY Y residents, except where title was taken by COUNTY in a proprietary capacity. 21 22 CiTY agrees and covenants that any and all user fees, including charges made by any lessees, 23 concessionaires, service providers and/or other assignees, shall be at the same rate for non - CITY 24 residents as for the residents of CITY. 25 26 COUNTY represents that it has provided to CITY all information and documentation it is aware of or 27 has in its possession regarding the Properties, including but not limited to the ownership, 28 encumbrance, maintenance, operations and limitations on title, use or conveyance thereof. 29 30 SECTION NO. 2: RESPONSIBILITY FOR OPERATION, MAINTENANCE, REPAIRS, 31 IMPROVEMENTS, AND RECREATION SERVICES 32 33 2.1 As consideration for COUNTY'S agreement to convey the Properties, CITY agrees to assume full 34 and complete responsibility for all maintenance, operation, repair, improvement, and provision of 35 recreation services on such Properties, to include facilities thereon, as of April 1, 2003. 36 37 2.2 CITY contracts with COUNTY to maintain and operate the Properties listed in Section No. 1.2 on and 38 after April 1, 2003 under the terms and conditions specified hereinafter. It is the intent of the PAR`l'[ES 39 that such responsibilities be consistent with the CITY'S Council/Manager form of government provided 40 for in chapter 35A.13 RCW. 41 42 2.3 Base Level Services. Acting solely as an independent contractor on behalf of CITY, COUNTY will 43 provide routine park maintenance and operation services for the Properties listed in Section 1.2 above 44 at that level and standard provided by the COUNTY or its agents to each individual Property in Parks lnterlocal Agreement Page 3 of 12 1 calendar year 2002. This level of service is hereinafter referred to as "base level service." A 2 description of base level services is attached hereto as Attachment C. 3 4 CITY and COUNTY agree CITY will collect all income from all sources on the Properties. 5 COUNTY shall turn over to CITY all of COUNTY'S books and records concerning the same, 6 including books of account and ledgers, together with all income collected by the County since April 7 I 2003 presently held by COUNTY, including security deposits, and shall provide CITY with a full 8 accounting of all such funds through date of delivery. 9 10 COUNTY, in the performance of its maintenance and operation services, shall, to the best of its 11 ability, comply with and ensure compliance with all federal, state and local laws, ordinances, codes, 12 rules and regulations applicable to the operation and maintenance of the Properties. With respect to 13 the maintenance and operation of the Properties, COUNTY'S services will include but not be limited 14 to the following: 15 16 (a) Employing, discharging and paying all persons providing base level service or otherwise 17 employed by COUNTY in the management and operation of the Properties; 18 (b) Purchasing all materials and supplies necessary for the maintenance and operation services to 19 the Properties; 20 (c) Contracting for and supervising the making of all repairs and alterations necessary to perform 21 the maintenance and operation services; 22 (d) Managing the Properties in full compliance with all laws and regulations of any federal, state, 23 county or municipal authority having jurisdiction over the Properties; 24 (e) Assisting CITY as needed in acquiring all necessary insurance on the Properties, including, but 25 not limited to, public property liability, fire and extended coverage hazard insurance. 26 27 COUNTY shall refer any third party contacts with respect to renewal or new operations, leasing, 28 licensing or concessions on any of the Properties to CiTY upon receipt and shall cooperate with 29 C1TY in the creation of any such relationship with said contacts. In the event CITY enters into any 30 leases, licenses, concessions or other similar an the PARTIES shall discuss incorporation 31 of the same into this Agreement. 32 33 CITY shall enforce all the terms and conditions of any applicable income producing agreement, 34 written or oral, during the term of this Agreement. 35 36 COUNTY shall provide CITY access to all of COUNTY'S books and records relating to the 37 Properties, including books of account and ledgers. Upon the termination of this Agreement, the 38 COUNTY shall deliver all the hooks and records relating to the Properties to CITY and provide CITY 39 with a full accounting of all Properties' expenditures and funds through the date of termination and 40 delivery. 41 42 CITY may request adjustments to individual tasks associated with base level service in order to meet 43 specific needs. COUNTY shall consider all such requests and, whenever reasonably practicable, alter 44 the work program as necessary. 45 Parks Intcrlocal Agreement Page. 4 of 12 1 CITY reserves the option of replacing any positions as described in Attachment "A ". In the event 2 CITY exercises that option CiTY shall (i) provide a minimum of sixty (60) calendar days written 3 notice prior to the effective date of such option notice being delivered to COUNTY, in accordance 4 with Section 5, and (ii) assume responsibility of providing personnel for said position at CITY'S sole 5 cost and expense. CITY and COUNTY shall adjust this contract to reflect CITY's assumption of said 6 costs reduction of payments to COUNTY for said services and /or position. 7 8 COUNifY is only required .to perform maintenance and operation services on the Properties listed in 9 Section 1.2 as those Properties were improved as of the 12:01 A.M. April 1, 2003, the CITY's official 10 date of incorporation. COUNTY and CITY anticipate that there may be further improvements made 11 to these Properties by CITY which will require additional maintenance. CITY agrees to pay 12 COUNTY for any increased maintenance costs to any Property, regardless of the funding source of 13 the improvement, due to any improvement thereto. 14 15 2.4 Extra or Enhanced Services. Acting solely as an independent contractor on behalf of CITY, 16 COUNTY will provide services above base level services upon written request from CITY and 17 mutual agreement as to any increased costs for such service. Such additional services arc hereinafter 18 referred to as "extra or an enhanced services." 19 20 2.5 Construction of Mirabeau Meadows Park. COUNTY agrees to complete the construction of 21 Mirabeau Meadows Park. For the purpose of this Agreement, the terminology "construction" shall 22 include (1) preparing bid document(s) for the Project (Mirabeau Meadows), (2) awarding the Project 23 pursuant to County public works laws; (3) construction management of the awarded Project; and (4) 24 acceptance of the completed Project. COUNTY has already prepared bid documents denominated as 25 Project No. P3993. COUNTY agrees not to award Project if the bid of lowest responsible bidder 26 exceeds $1.4 Million without consultation and approval by CITY. 27 28 The cost of the Mirabeau Meadows Park construction will be funded solely using a portion of State 29 Grant (INTERGOVERNMENTAL AGREEMENT) #02- 99300 -018 estimated at $1.4 million except 30 for COUNTY staff construction over sight costs which will be paid by the CITY as provided for in 31 Attachment "A." No COUNTY money will be used. 32 33 2.6 Oversee Design of Mirabeau Point Center Place Facility ( "Facility "). County agrees only to 34 oversee the design of Mirabeau Point Center Place Facility ( "Facility ") until August 26, 2003 at 35 which time the CITY will assume such over sight responsibility. Provided, however, after August 36 26, 2003, the COUNTY will continue to provide staff time necessary to coordinate payments of 37 billings associated with the design of Project No. P3983. All future phase(s) of the Facility will be 38 the sole responsibility of the CITY. For the purpose of this Agreement, the terminology "oversee the 39 design" shall mean employment of an architect to design the Facility and payment for services solely 40 from State Grant ( INTERGOVERNMENTAL AGREEMENT) #02- 99300 -018. No COUNTY money 41 will be used for the design of Facility. COUNTY has employed Tan Moore Architects under Project 42 Agreement No. P3983 to design the Facility. COUNTY will coordinate with CITY all major 43 decisions with respect to the design of the Facility; however, ultimate decision making authority shall 44 be CITY'S. 45 Parks Intcrlocal Agreement Page 5 of 12 1 The cost to design Mirabeau Point Center Place Facility will be funded solely using a portion of State 2 Grant (INTERGOVERNMENTAL AGREEMENT) #02- 99300 -018 estimated at $500,000 except for 3 COUNTY staff design over sight costs which will be paid by the CITY as provided for in Attachment 4 "A ". If there are funds remaining in the State Grant (INTERGOVERNMENTAL AGREEMENT) #02- 5 99300 -018 upon completion of the Mirabeau ivleadows Park construction and Mirabeau Point Center 6 Place Facility design, COUNTY staff will work with CITY staff to allocate unused grant moneys for 7 completion/construction of other elements of the Mirabeau Point Park Master Plan. 8 9 Separate from the Grant Funds allocated for design of the Mirabeau Point Center Place Facility, the 10 COUNTY has set aside $1.4 million for the construction of the new Senior Citizen Center Facility as 11 a component of the Mirabeau Point Center Place Facility. COUNTY agrees to make this money 12 available to CITY in the event CITY elects to proceed with construction of the Senior Citizen Center 13 Facility component of the Mirabeau Point Center Place Facility or any portion thereof not in a lump 14 sum, but as necessary to pay consultants and contractors for services completed. COUNTY shall 15 retain any and all interest on the $1.4 Million. The County understands that some of components of 16 the Mirabeau Point Center Place Facility may not be directly incorporated into the Senior Center 17 Facility but the Senior Center Facility may use such components. COUNTY agrees that the CITY 18 may use the $1.4 Million not only to fund the Senior Citizen Center but also other components of the 19 Mirabeau Point Center Place Facility which are used by the Senior Center Facility. For example, 20 there may very well be a kitchen which is shared by not only the Senior Citizens Center but also 21 another component of the Mirabeau Point Center Place Facility. The kitchen accordingly may be 22 funded in full or part with the 81.4 Million. 23 24 COUNTY shall not have an obligation to operate or maintain either the Mirabeau Meadows Park or 25 Mirabeau Point Center Place Facility after their completion until the PARTIES mutually agree as to 26 all increased operation and maintenance costs in accordance with Section 2.3 above. 27 28 2.7 Valley Mission Pool. COUNTY has set aside $1.6 million for the construction of an aquatic facility 29 intended to replace the Valley Mission Pool. COUNTY originally proposed a replacement pool to be 30 located at Valley Mission Park (South). The design of the new pool has been completed. However, 31 upon the vote to incorporate CITY, COUNTY opted to defer construction of the new pool. 32 COUNTY agrees to (0 transfer the complete plans for the new Valley Mission Pool to CITY and (ii) 33 to make available to CITY 81.6 million for construction of a new pool at any location as determined 34 by CiTY and using the design completed or another designed as approved by CITY. COUNTY 35 agrees to transfer plans for said pool to CITY upon execution of this Agreement. $1.6 million will be 36 retained by COUNTY and paid to CITY as needed by CITY to pay consultations and contractors in 37 conjunction with design /construction of a new pool. COUNTY shall retain any and all interest on the 38 $1.6 million. 39 40 SECTION NO. 3: DURATION 41 42 This Agreement shall commence at 12:01 A.M. on April 1, 2003 and terminate at 12:00 P.M. on December 43 31, 2004, unless terminated as provided for in Section 10. This Agreement shall be effective upon signature 44 by both PARTIES. 45 Parks tnterlocal Agreement Paee 6 of 12 1 SECTION NO. 4: COST OF SERVICES 2 3 CITY shall pay COUNTY the actual casts for base level services described herein and provided by 4 COUNTY to the Properties. For 2003 the costs of such base level services shall not include equipment 5 depreciation on equipment owned by COUNTY. The COUNTY, at its sole discretion may include such 6 equipment depreciation of equipment for calendar years 2004. The estimated cost for 2003 base level 7 services is SIX HUNDRED FIFTY -SIX THOUSAND ONE HUNDRED THIRTY- SD( DOLLARS and 8 87/100 ($656,136.87614,132.32). The methodology used to calculate the cost of providing CITY'S base 9 level services is set forth in Attachment "A," attached hereto and incorporated herein by reference. This 10 methodology contemplates that the CITY retains all fees/revenues collected from Properties and facilities 11 — as of April 1, 2003. Further, CITY shall be responsible for all costs/assessments associated with 12 ownership of park properties /facilities including but not limited to electricity, sewer, water, gas, garbage, 13 telephone, and taxes. Said costs are separate from the estimated costs to provide base level services in 14 2003 as described herein. 15 16 In 2004, the PARTIES acknowledge that the estimated costs will automatically increase based upon 17 salary adjustments to include cost of living increases ( "COLA ") granted by the BOARD, increased costs 18 provided for in a Collective Bargaining Agreement, and increased costs for various items set forth in 19 Attachment "A." COUNTY will prepare an estimated cost for 2004 base level services using the same 20 methodology as set forth in Attachment "A." This estimate will be provided to CITY on or before 21 October 31, 2003. This estimate will be used for the purposes of 2004 billings. 22 23 COUNTY will bill CiTY for the estimated cost of services, monthly, during the first week of the month. 24 For calendar 2003, the estimated cost of $656,136.87 will be paid as provided herein. Payments by 25 CITY will be due by 5 working day of the following month. At the sole option of COUNTY, a penalty 26 may be assessed on any late payment by CITY based on lost interest earnings had the payment been 27 timely paid and invested in the Spokane County Treasurer's investment Pool. 28 29 At the end of calendar year 2003 and 2004, using actual costs COUNTY and CITY will each determine 30 respectively whether or not the estimated costs were accurate. To the extent that the CITY was over 31 billed in any year, it will receive a credit to be applied as mutually agreed. if the CITY was under billed, 32 it will receive a debit in the subsequent billing. The adjustment will normally take place in March of the 33 year following the year services were performed but no later than June 30 ( "date of detennination "). At 34 the sole discretion of the CITY, in the case of over billing, or the sole discretion of the COUNTY, in the 35 case of an under billing, the party may request interest on such amount based on lost interest earnings had 36 the under billing amount been invested since the end of the calendar year to the date of determination in 37 the Spokane County Treasurer's Investment Pool or the over billing amount been invested since the end 38 of the calendar year to the date of determination in the Washington Cities Investment Pool. M &O items 39 chargeable to the CITY shall be directly attributable and proportionate to services received by City under 40 the terms of this Agreement. 41 42 The Parties executed a Memorandum of Understanding (MOU) on April , 2003. Under that MOU, 43 the County agreed to provide Base Level Services and Senior Center Services as described in Section 2.3 44 of this Agreement commencing April 1, 2003. The Parties by mutual assent subsequently included 45 Aquatic Services. All MOU services would be performed until both Parties formally executed this Parks Interlocal Agreement Page 7 of 12 1 Agreement. The COUNTY would bill the CITY all actual costs for providing MOU services as generally 2 outlined in the Attachment "A" to this Agreement. The M.OU provided that in the event the Parties 3 executed this Agreement, in lieu of payment of actual costs under the MOU, by mutual agreement. the 4 Parties could simply invoice/pay for services under the terms of this Agreement. 5 6 The COUNTY has billed the CiTY under the MOU $23,042.61 for April 2003, $60,107.09 for May 2003 7 and S82,907.31 for June 2003. These billings do not represent all the actual costs for providing services 8 for those time frames due to, among other factors, delays in the COUNTY receiving invoices for 9 suppliers. 10 11 The Parties agree that as of July 1, 2003 and through the remainder of 2003, the CiTY will pay the 12 COUNTY that monthly amount of $72,904.09 which represents the estimated monthly cost to provide. all 13 services. For the months of April, May and Junc, 2003 the Parties agree that once the COUNTY 14 determines the actual billings for these months, it will bill CITY any difference between the billings to 15 date and the estimated monthly amount of $72,904.09. In the event the actual billings for April, May and 16 June exceed S72,904.09 or are less than $72,904.09, this excess or shortfall will be taken into 17 consideration in the adjust and settle time frame. discussed hereinabove. 18 19 SECTION NO. 5: NOTICE 20 21 All notices or other communications given hereunder shall be deemed given on: (1) the day such notices or 22 other communications are received when sent by personal delivery; or (ii) the third day following the day on 23 which the same have been mailed by first class delivery, postage prepaid addressed to COUNTY at the 24 address set forth below for such Party, or at such other address as COUNTY shall from time -to -time 25 designate by notice in writing to the other PARTiES: 26 27 COUNTY: Spokane County Chief Executive Officer or his/her authorized representative 28 1116 West Broadway Avenue 29 Spokane, Washington 99260 30 31 CITY: City of Spokane Valley City Manager or his/her authorized representative 32 Redwood Plaza 33 11707 East Sprague Avenue, Suite 106 34 Spokane Valley, Washington 99206 35 36 SECTION NO. 6: COUNTERPARTS 37 38 This Agreement may be executed in any number of counterparts, each of which, when so executed and 39 delivered, shall be an original, but such counterparts shall together constitute but one and the same. 40 41 SECTION NO. 7: ASSIGNMENT 42 43 COUNTY may assign any of its responsibilities under the terms of this Agreement so long as the COUNTY 44 remains responsible for oversight and supervision of all responsibilities. 45 Parks Intcrioeal Agreement Page 8 of 12 1 SECTION NO. 8: LIABILITY 2 (a) COUNTY shall indemnify and hold harmless CITY and its officers, agents, and employees, or any of 3 them from any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature 4 whatsoever, by any reason of or arising out of any negligent act or omission of COUNTY, its officers, 5 agents and employees, or any of them relating to or arising out of performing services pursuant to this 6 Agreement. In the event that any suit based upon such claim, action, loss, or damages is brought against 7 CITY, COUNTY shall defend the same at its sole cost and expense; provided that CITY reserves the right 8 to participate in said suit if any principle of governmental or public law is involved; and if final judgment 9 in said suit be rendered against CITY, and its officers, agents, and employees, or any of them, or jointly 10 against C1TY and COUNTY and their respective officers, agents, and employees, COUNTY shall satisfy 11 the same. 12 13 (b) CITY shall indemnify and hold harmless COUNTY and its officers, agents, and employees, or any of 14 them from any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature 1 whatsoever, by any reason of or arising out of any negligent act or omission of CITY, its officers, agents 16 and employees, or any of them relating to or arising out of performing services pursuant to this 17 Agreement. In the event that any suit based upon such claim, action, loss, or damages is brought against 18 COUNTY, CITY shall defend the same at its sole cost and expense; provided that COUNTY reserves the 19 right to participate in said suit if any principle of governmental or public law is involved; and if final 20 judgment in said suit be rendered against COUNTY, and its officers, agents, and employees, or any of 21 them, or jointly against COUNTY and CITY and their respective officers, agents, and employees, C1TY 22 shall satisfy the same. 23 24 (c) The foregoing indemnity is specifically intended to constitute a waiver of each party's immunity under 25 Washington's Industrial Insurance Act, Chapter 51 RCW, respecting the other Party only, and only to the 26 extent necessary to provide the indemnified party with full and complete indemnity of claims made by 27 the indemnitor's employees. The PARTIES acknowledge that these provisions were specifically 28 negotiated and agreed upon by them. 29 30 (d) COUNTY and CI'T'Y agree to either self insure or purchase polices of insurance covering the matters 31 contained in this Agreement with coverages of not less than S5,000,000 per occurrence with $5,000,000 32 aggregate limits including for staff professional liability and auto liability coverages. 33 34 SECTION NO. 9: RELATIONSHIP OF THE PARTIES 35 36 The PARTIES intend that an independent contractor relationship will be created by this Agreement. No 37 agent, employee, servant or representative of COUNTY shall be deemed to be an employee, agent, servant or 38 representative of CITY for any purpose. Likewise, no agent, employee, servant or representative of C1TY 39 shall be deemed to be an employee, agent, servant or representative of COUNTY for any purpose. 40 41 SECTION NO. 10: MODIFICATION AND TERMINATION 42 43 This Agreement may be modified in writing by mutual ageement of the PARTIES. 44 Parks Interlocal Agreement Page 9 of 12 1 Any Party may terminate only the maintenance and obligation of COUNTY set forth in 2.2, 2.3 and 2.4 2 herein for any reason whatsoever upon a minimum of 90 days written notice to the other Party. 3 4 Any Party may terminate this Agreement for breach of any provision concerning the providing of 5 maintenance and operation services or payment of consideration upon thirty days (30) advance written notice 6 to the breaching Party. lithe defaulting Party cures the breach to the satisfaction of the noti Party within 7 the thirty-day (30) time frame or such time frame as is reasonably necessary to cure the default, then the 8 notice of termination shall be void. 9 10 Upon termination, CITY shall be obligated to pay for only those basic level services and extra or enhanced 11 services rendered prior to the date of termination based upon a pro rata allocation of costs to the date of 12 termination. 13 14 SECTION NO. 11: PROPERTY AND EQUIPMENT 15 16 The ownership of all equipment owned and utilized by COUNTY in providing maintenance and operation 17 services under this Agreement or acquired by COUNTY from the consideration by CITY for such 18 maintenance and operation services shall remain with COU1N'TY upon termination of this Agreement. 19 Provided, however, the PARTIES acknowledge that GUY may purchase equipment and provide such 20 equipment to COUTY to perform such maintenance and operation expenses. The ownership of any 21 equipment acquired by CITY and made available to COUNTY to provide maintenance and operation 22 services under the terms of this Agreement shall remain with CITY upon termination of this Agreement. 23 24 Attached hereto as Attachment "13" and incorporated herein by reference is a listing of certain equipment and 25 machinery that COUNTY presently owns and may use in conjunction with providing maintenance and 26 operation services to CITY under the terms of this Agreement, if the Agreement runs its entire term without 27 termination COUNTY agrees to transfer to CITY at the end of said term at no cost and in an "as -is 28 condition" those pieces of equipment and machinery listed in Attachment "B" which are still owned by 29 COUNTY. If, for any reason, this Agreement is terminated by either Party prior to December 31, 2004 30 COUNTY agrees to sell to CITY in as "as -is condition" those remaining pieces of equipment and machinery 31 listed in Attachment `B" which are still owed by COUNTY for FIFTY THOUSAND DOLLARS 32 ($50,000.00). 33 34 SECTION NO. 12: GENERAL TERM 35 36 This Agreement contains terms and conditions agreed upon by the PARTIES. The PARTIES agree that there 37 are no other understandings, oral or otherwise, regarding the subject matter of this Agreement. No changes or 38 additions to this Agreement shall be valid or binding upon the PARTIES unless such change or addition is in 39 writing, executed by the PARTIES. 40 41 This Agreement shall be binding upon the PARTIES hereto, their successors and assigns. 42 43 SECTION NO. 13: VENUE STIPULATION 44 Parks interlacal Agreement Page 10 of 12 1 This Agreement has been and shall be construed as having been made and delivered within the State of 2 Washington and it is mutually understood and agreed by each Party that this Agreement shall be governed 3 by the laws of the State of Washington both as to interpretation and performance. Any action at law, suit 4 in equity or judicial proceeding for the enforcement of this Agreement, or any provision hereto, shall be 5 instituted only in courts of competent jurisdiction within Spokane County, Washington. 6 7 8 SECTION NO. 14: SEVERABIT.:TTY 9 10 It is understood and agreed among the PARTIES that if any parts, terms or provisions of this Agreement 11 are held by the courts to be illegal, the validity of the remaining portions or provisions shall not be 12 affected and the rights and obligations of the PARTIES shall not be affected in regard to the remainder of 13 the Agreement. If it should appear that any part, term or provision of this Agreement is in conflict with 14 any statutory provision of the State of Washington, then the part, term or provision thereof that may be in 15 conflict shall be deemed inoperative and null and void insofar as it may be in conflict therewith and this 16 Agreement shall be deemed to modify to conform to such statutory provision. 1.7 18 SECTION NO. 15: HEADINGS 19 20 The section headings appearing in this Agreement have been inserted solely for the purpose of 21 convenience and ready reference. In no way do they purport to, and shall not be deemed to define, limit 22 or extend the scope or intent of the sections to which they pertain. 23 24 SECTION NO. 16: REPRESENTATIVES 25 26 COUNTY hereby appoints the Spokane County Parks and Recreation Director or his/her designee for the 27 purpose of administering the terms of this Agreement. CITY hereby appoints the City Parks and 28 Recreation Director or his/her designee for the purpose of administering the terms of this Agreement. 29 Each PARTY'S representative agrees to meet on a monthly basis or as necessary to address COUNTY'S 30 provision of basic level services or extra/enhanced level services under the terms of this Agreement. in 31 the event there is a disagreement between the PARTIES, it shall be forwarded to the CO1.JN TY CEO and 32 CITY Manager for resolution. 33 34 Spokane County Parks and Recreation Director or his/her designee agrees to attend staff meetings as 35 requested by the CiTY Manager. 36 37 SECTION NO. 17: REPORTING 38 39 COUNTY, through the Spokane County Parks and Recreation Director or his/her designee shall provide a 40 mutually acceptable quarterly report to CITY that will contain information relating to services performed 41 under the terms of this Agreement during the preceding quarter. 42 43 Parks Interlocal Agreement Page 11 of 12 rTh 1 SECTION NO. 18: STAFFING 3 COUNTY shall have the sole right and responsibility to hire, assign, retain and discipline all employees 4 performing services under this Agreement according to collective bargaining agreements and applicable state 5 and federal laws. COUNTY agrees to meet and confer with CITY with respect to staff are assigned to 6 provide such services. 7 8 SECTION NO. 19: RECORDS 9 10 All public records prepared, owned, used or retained by COUNTY in conjunction with providing services 11 under the terms of this Agreement shall be deemed CITY property and shall be made available. to CITY upon 12 request by CITY Manager. COUNTY will notify CITY of any public disclosure request under chapter 42.17 13 RCW for copies or viewing of such records as well as the COUNTY's response thereto. 14 15 16 year opposite their respective signatures. 3 0790 17 18 19 20 21 22 23 24 25 26 27 2 8 29 30 31 DATED: 32 33 Attest: 34 35 36 City Clerk 37 38 Approved as to form only: 39 40 41 Acting City Attorney 42 43 44 EN WITNESS WHEREOF, the PARTIES have caused this Agreement to be executed on date and ` h I t 1 D z - o p- - 00 6 . G ?- .c i �1. m .� 1 • ‘ 1/h TE C.1015 ‘. 4f i � JO % ' OSKELLE ',Chair 1 - ILl S, Vic Chai DATED): ATTEST: VICKY M. DALTON CLERK OF THE BOARD 13Y: aniela Erickson, Deputy Parks lnterlocal Agreement BOARD OF COUNTY COMMISSIONERS M. KATE j11 it , VASHINGTON ill JIM . _ SLIN CITY OF SPOKANE VALLEY: By: Its: (Title) Page 12 0112 PARKS- AOUAT1CS- AdministrativePerscnnet; Wages/Benefits Director 10,685.81 Services Manager 31,324.97 Office Managor 4,473.18 01(rco Assistant 3 11,504.61 Accounting Tech 4 11,950.95 Sub Total 78,539.52 Maintenance Personnel' Trades Specialist Trades Specialist Maintenance Worker 11 Mechanic II Extra e p Sub Total Spokane County Parks and Rocroation Contract with City of Spokane Valley ATTACHMENT "A" 38,058.39 19,029.24 32,001.03 18,111.35 28,000.00 133,200.01 Cost allocation tor ma!ntenance and operation of Valley Park Propartios: 42,390.25 Cost of Supplies 8 Materials for Maintaining Valloy Parks 81,931.77 Cost of Equpment M8O 19,689.93 Un•nnticipated Repairs and Maintenance due to Mother /totem and Vandalism 35,000.00 Total Cost for County to provide requested Park Operation: 390,751.48 MIRABEAU POINT PROJECTS- 1• Mtrabeau Meadows Park Construction Oversight Administrativ Perso�nnef: Director 4,325.46 Services Manager 5,925.26 Facilities Director 708.25 Facilitios Self Ato t 270.00 Sub Total 11,228.97 Cost 05:cation tor construction oversight Total for Meadows: 2,248.04 13,477.01 Mtrabeau Point, ContorPlaco Design Oversight Administrative Personnel: Director 3,379.27 Facilities Director 708.25 Facilities Self Arttatant 270.00 Sub 'Total 4,357.52 Cost 05ocotton tor contract oversight Total tor CenterPlace: Total Mtrabeau Point Combined Projects 872.38 5,229.90 18,706,91 Maintenance and Administtalien Director 1,126.42 Sorvices Manager 4,610.94 Office Manager 2,982.03 Recreation Program Coordinator 6,014.40 Office Assistant 4 2,09925 Accounting Tech 4 3,543.22 Trades Specialist 22,812.00 Mechanic 11 2,557.35 Maintenance Extra Help 5,711.20 51,456.81 Aquatics Extra I•lelo Aquatics Coordinator Pool Managers 8 Lifeguards Sub Total Cost allot Sion for maintenance and operation of Valley Pool Facilities: Cost of operating Supplies, Chemicals, Utililcos, eic. tor Vatey Pools Cost of Equipment M8.0 Pap 1 of 2 4,176.90 76,983.00 81,159.90 26,549.87 14,700.00 3,731.42 Total Proposed Aquatics level of Senice: 177,598.00 SENIOR CENTER- Spokane County Pnr'ks and Recreation Contract with City of Spokane Valley City et Spokane Valley Enhanced Services request to expand aquatics services as follows: Correct Season Plus Expended Hours for nil Three fouls: ( $7 P..xnnnded 1 aleck -Eral Datsl; Earcedcd Se sc n Thar Labur Day for One of Three Pools; (Additional 12 week days * 3 week -Fnd Days): 'fatal fur enhanced Agrmtics Servke : 24.40132 16.344.48 40,745.80 Grand Total for 2003 Aquatics Services: 218,343.80 Director 670.9. April 1st - May 31st Services Manager 5,706.25 Office Manager 406.96 April 1st - May 31st Senior Center Coordinator 4,147.70 April 1st • May 31st Accountant Teen 4 393.70 April 1st - May 31st Maintenance Worker 11 4,800.15 Mechanic 11 1,150.83 Extra Help (Janitor & Bus Drivers) 2.208.18 April 1st - May 31st Sub Total 19,582.75 Cost allocation for maintenance and operation of Volley Senior Center 3,920.47 Cost of Supplies & Materiels for Maintaining Valley Sentior Center 4,404.00 Cost of Equipment M &O 337.41 Total Cost for County to provide requested Senior Center Services: 28,334.60 Grand Total Operations of Parks, Aquatics & Senior Center: 656,136.87 Date prepared: August 25, 2003 (Year 2003) 1 ' 'Neither construction management nor design oversight expenses will (Erectly or indirectly cause on increase In the total contract costs that vould require any additional payment frorrl the city in the "adjust and settle process.' Estimated Current Value Spokane County Parks Equipment and Machinery Package (City of Spokane Valley) $10,000.00 $7,500.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $4,000.00 54,000.00 58.500.00 $58,000.00 Estimated Equip Replacement # Cost S50,000.00 S45,000.00 S15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $40,000.00 S225,000.00 Estimated Estimated Equip Current Value Replacement # Cost $5,000.00 510,000.00 $1,200.00 $2,500.00 51,000.00 $6,000.00 S1,000.00 $6,000.00 S8,000.00 $12,000.00 58,000.00 $17,000.00 S8,000.00 $17,000.00 58,000.00 $17,000.00 54,000.00 $8,000.00 52,000.00 $6,000.00 $40,000.00 5100,000.00 55,000.00 $20,000.00 S5,000.00 $20,000.00 S2,000.00 $2,500.00 $400.00 5550.00 $200.00 S600.00 $98,800.00 $245,150.00 $156,800.00 $470,150.00 Total Total Date prepared: July 21, 2003 ATTACHMENT "B" Vehicles 461 2 Ton 1974 Ford F -150 465 1 Ton 1986 Chevy C -30 428 1/4 Ton 1988 Chevy S -10 429 1/4 Ton 1988 Chevy S -10 430 1/4 Ton 1988 Chevy S -10 433 1/4 Ton 1988 Chevy S -10 508 1/4 Ton 1983 Ford Ranger 511 1/4 Ton 1983 Ford Ranger 431 1 Ton 1988 Chevy C -30 Machinery 1 Kawasaki Mule 1992 4X2 Portable Herb Sprayer 484 Haulette/Trailer 1972 485 Haulette/Trailer 1972 501 5th Wheel Trailer 1994 1 Olathe Turf Sweepers 1984 2 Olathe Turf Sweepers 1984 3 Olathe Turf Sweepers 1984 Orsi Flail Mower CR 350 Jacobsen Over Seeder 423 Toro Gang Mower 1991 10 72" Riding Mower 1992 11 72" Riding Mower 1994 Generator Weed Trimmers (4) Backpack Blower (2) NOTE: Equipment Miles and hours of usage dates back to January 1$t 2003 and is subject to change. Miles 84,581 60,381 45,044 46,869 40,364 51,395 58,751 49,067 71,294 1652 Hours Small Small Small Medium 4547 Hours 4814 Hours 482 Hours 2711 Hours 1043 Hours 900 Hours fl 2003 City of Spokane Valley Aquatics Base Level of Service: Pools shall operate from June 20th, through August 15th. Puhlic Swim Schedule for each City Pool: Open Monday through Friday 1:00-2:30p 2:45 -4:15p 4:30 -6:OOp Swimming Lessons Lessons are held at all three aquatic sites. A full range of swim lessons are offered from Parent and Tot through the Red Cross Levels and adult lessons. All Levels S25.00. The majority of lessons will be held between 8 a.tn. and 12:30 p.m. on weekdays at the pools. Typical example of lesson schedule as follows: Morning Lessons (8am- 12:30): June 23 - July 4 July 7- July18 July 21 - August 1 August 4 - August 15 To accotmnodate families who are unable to attend morning swim lessons, a session of evening lessons will be offered at each City Pool facility as follows: Evening Lessons (after 6pm): Valley Mission Pool Se Sion (July 7 -18) Terrace View Pool Session (July 21 - Augusi I) Park Road Pool Session (August 4 - August 15) Swim Team A Novice Swim Team program shall be provided open to youth age 6 through 18 yeah of age. Three practice sessions each week (typically 7:OOAM- 8:OOAM.) plus three Wedn evening swim meets. Additional Aquatics Services: Current to Season Plus Expanded Hours for all Three Pools; (57 Expanded Week Days _ 16 Week -End Days): Extended Season That Labor Day for One of Three Pools; (Additional 12 week days + 5 Week-End Days): ATTACHEMENT "C" Aquatics Aquatics; Spokane County will operate the pools according to all applicable safety standards, rules and regulations as set forth by the American Red Cross, Washington State Health Department and other generally accepted practices. City of Spokane Valley Requested 2003 Level of Service: Pool Public Swim Schedule Valley Mission • Terrace View * Park Road Pool Friday, June 20th — August 15th •" ,Monday— Friday 1:30 -3:30p 3:45 —5:45p 6:00 — 8:OOp (Tues. S Thurs Adults Only) Sat. — Sun 2:00 - 4:30p 5:00 — 7:30p * *Please note one valley pool will be open through Labor Day, September 1st Please Note: Unless otherwise listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. • Attachment *C" page 1 of 13 Tree Maintenance Time allowance for this task: Maintenance staff time, supplies, etc. to complete misc. 9.5 hours plus tasks such as watering, pruning, supplies & branch clean -up, etc... equipment Moving Trimming Weed Trimming Mowing Irrigation Start -up sprinkler system in the spring. Visits to park seasonally to inspect & adjust sprinklers, time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow-out system in the fall. Fertilizer Fertilize turf areas Aerate Aerate turf areas Attachment "C" page 2 of 13 Times per week: 1 1 1 Times work performed: 1 -time per year 45- visits to site per season. Average (1 hr.) visit 1 -time per year Times work performed: 3- applications per year Times work performed: 1 -time per year Balfour Park Table & Garbage Can Placement & Time allowance Misc. Repairs & Inspections for this task: Wee kslS eason: 26 Move tables and additional garbage cans out of storage and into parks in the spring. Return tables and most garbage cans back into storage in the fall. Repairs: Miscellaneous repairs & inspections of fences, signs, backstops, drinking fountains, play equipment, benches, tables, garbage cans, etc... 26 Restroom Cleaning & Litter Control 26 Cleanings (includes supplies) Sweeping Parking Lots) v.ill be swept using the asphalt sweeper, in Spring and again in Summer. Turf Sweeping in the spring. 2 -time per year 1 -time per year Times work Weed Control performed: Weed Control in the form of spraying weed killing chemical application. 1 -time per year General Summary of Park Maintenance intended to apply to all parks described herein; Parks will be maintained to a safe, clean condition in accordance with standard and customary care and in compliance with applicable laws and regulations. Turf will be green and healthy with minimal dry or damaged areas. Mowing/trimming will Include areas around trees, buildings, fences as necessary to maintain uniform appearance. Irrigation repairs will be made in a timely manner to avoid wasting water and dry spots in turf. Playgrounds will be inspected on a regular basis and maintained In safe condition. Restrooms will be clean and odor free. Sinks and stools will be leaned and disinfected on a regular basis throughout the Park Season (April 15th through October 15th) as necessary. Graffiti will be removed or painted over in a timely manner. Litter will be removed on a regular basis throughout the Park Season (April 15th through October 15th) as necessary. The Spokane County Parks, Recreation and Golf Director and the City of Spokane Valley Parks and Recreation Director will communicate on a regular basis to monitor and manage the park maintenance standards. Please Note: Unless otheAvise listed above, base level of service does not include tin-anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all oontractuafy maintained properties. 3.0 hours plus supplies & equipment 25.0 hours plus supplies & equipment Times work performed: 180 Times work performed: Tree Mai ntenarwce Maintenance staff time, supplies, eta. to complete mist- tasks such 16 hours ptus as watering, pruning, branch dean supplies & up, etc... equipment Mowing Mewing Trimming Weed Trimming Irrigation Start-Lip sprinkler System in the spring. Visits to park seasanalfy to inspect 8 adjust sprinklers, time clocks, address dry spats. and 'complete minor repairs es necessary. 44inter1zeiblow -u1 system In the fall. Fertilizer Fertilize turf area Aerate Aerate turf areas Attachment "C" page 3 of 13 Time allowance for this task; Times par Weeks /S week: ea Son; 1 26 1 26 1 26 Times work performed' 1.-time per year 75- visits to site par season.. Average (1 hr.) VIII 1 -Eirno par year Times work performed!_ 3- applications par year Tim as .pork performed; 1 -lime per year Browns Park Table & Garbage Can Placement & Misc. Repairs & Inspections btive tables and additional garbage cans out of storage anti Into perks in the spring. Return tables and most garbage cans back into storage in the fall. Repairs: Miscellaneous repairs 8 inspections of fences, signs, backstops, drtnking fountains, play equipmen€, benches, tables, garbage cans, etc -.- Resiroom Cleaning,& Litter Control Cleanings (includes supplies) weednq Parking Lot(s) will be swept using iha asphalt sweeper, in Spring and again in Su+'nmer. Turf Sweeping in the spring. Weed Control Time allowance for this task! 6.0 hours plus supplies & equipment 23 -0 hours plus supplies & equipment Times work 90 Times work performed: 2 -time per year 1 -time per year Times work performed: Weed Control In the form of spraying weed killing chemical application. 1 -time per year Please N ote: Unless otherwise fisted above, base level Of service does not include un- aniclpated repairs and melr.tenence due io moiler nature S vandalism- A single account has been established within the cvntraOt tc address un- anticipated repairs ana maintenance tvr all contra tivafly maintained properiles. Irrigation Start -up sprinkler system in the spring. Visits to park seasonally to inspect & adjust sprinklers. time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow-out system in Mowing Mowing Trimming Weed Trimming Fertilizer Fertilise turf areas Aerate Aerate turf areas Attachment "C° page 4 of 13 Times work performed: 1 -time per year 50- visits to site per season. Average (1hr.) visit 1 -time per year Times per 1 1 1 Times work performed: 3- applications per year Times work performed: 1-time per year Weeks/Season: 26 26 26 Castle Park Table & Garbage Can Placement & Tune allowance for this Misc. Repairs & Inspections task: Move tables and additional garbage cans out of storage and into parks in the spring. Return tables and most garbage cans back into storage in the fall. Repairs: Mlscelaineous repairs & inspections of fences, signs, backstops, drinking fountains, play equipment, benches, tables, garbage cans, etc... Restroom Cleaning & Litter Control Times work performed: Cleanings (includes supplies) 90 Sweeping Turf Sweeping in the spring. Please Note: Unless otherwise listed above, base level of service does not Include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. 4.0 hours plus supplies & equipment 25.0 hours plus supplies & equipment Times work performed: 1 -time per year Weed Control Weed Control In the form of spray rig weed killing chemical application. 1 -time per year Times work performed: Irrigation Start -up sprinkler system in the spring. Visits to park seasonally to inspect & adjust sprinklers. time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow -out system in Mowing Mowing Trimming Weed Trimming Fertilizer Fertilize turf areas Aerate Aerate turf areas Attachment "C" page 5 of 13 Times wort performed: 1 -time per year 120 - visits to site per season. Average (1hr.) visit 1 -time per year Times per 1 1 1 Times work performed: 3- applications Times work performed: 1 -time per year Edgecliff Park Weeks /Season: 26 26 26 Table & Garbage Can Placement & Time allowance for this Misc. Repairs & Inspections task: Move tables and additional garbage cans out of storage and into parks in the spring. Return tables and most garbage cans back into storage in the fall, Repairs: Miscellaneous repairs & inspections of fences, signs, backstops, drinking fountains, play equipment, benches, tables, garbage cans, etc... Restroom Cleaning & Litter Control Gleanings (inctudes supplies) Sweeping Parking Lot(s) Kill be swept using the asphalt sweeper, in Spring and again in Summer. Turf Sweeping in the spring. 13.0 hours plus supplies & equipment 25.0 hours plus supplies & equipment Times work performed: 110 Times work performed: 2 -time pet year 1 -time per year Weed Control Times work performed: Weed Control in the form of spraying weed killing chemical application. 1 -time per year Please Note: Unless otherwise listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs end maintenance for all contractually maintained properties. Mowing Mowing Trimming Weed Trimming I rdoation Start -up sprinkler system in the spring. Visits to park seasonally to inspect & adjust sprinklers, time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow -out system In the fall. Fertilizer Fertilize turf areas Aerate Aerate turf areas Attachment 'V page 6 of 13 Times per week: Weeks/Season: 1 1 1 Times work performed: 1 -time per year 50- visits to site per season. Average (thr.) visit 1 -time per year Times work performed: 3- applications per year Times worts performed: 1 -time per year Park Road Park 26 26 26 Table 8 Garbage Can Placement & Misc. Repairs & Inspections Move tables and additional garbage cans out of storage and into parks in the spring. Return tables and most garbage cans back into storage In the fall. Repairs: Miscellaneous repairs & inspections of fences, signs. backstops, drinking fountains, play equipment, benches, tables, garbage cans, etc... Sweeping Parking Lots) will be swept using the asphalt sweeper, in Spring and again in Summer. Weed Control Weed Control in the form of spraying weed killing chemical application. Moose Note; unless otherwise listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un -anticlpated repairs and maintenance for all contractually maintained properties. Time allowance for this task: 4.0 hours plus supplies 8 equipment 25.0 hours plus supplies & equipment Times work performed: 2 -time per year Times work performed: 1-time per year f � Tree Maintenance Maintenance staff time, supplies, etc. to complete 14 -hours plus misc. tasks such as watering, supplies & pruning, branch clean -up, etc... equipment Mowing Mowing Trimming Weed Trimming Irrigation Start-up sprinkler system in the spring. Visits to park seasonally to inspect E. adjust sprinklers, time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow -out system in the fall. Fertilizer Fertilize turf areas Aerate Attachment "C" page 7of 13 Time allowance for this task: Times per WeeksfS week: eason: 1 26 1 26 1 26 Times work performed: 1 -time per year 120-vtslts to site per season. Average (1hr.) visit 1 -time per year Times work performed: 3- applications per year Times work performed: Aerate turf areas 1-lime per year Sullivan Park Table & Garbage Can Placement & Time allowance for this Misc. Repairs & Inspections task: Move tables and additional garbage cans out of storage and into parks in the spring. Return tables and most garbage cans back into storage in the fan. Repairs: Miscellaneous repairs & inspections of fences, signs, backstops, drinking fountains, play equipment, benches, tables, garbage cans, etc... Restroom Cleaning & Litter Control Cleanings (includes supplies) Weed Control Weed Control in the form of spraying weed killing chemical application. 6.0 hours plus supplies & equipment 25.0 hours plus supplies & equipment Times work performed: 90 Sweeping Times work performed: Parking Lot(s) will be swept using the asphalt sweeper, in Spring and again in Summer. 2-time per year Turf Sweeping In the spring. 1 -time per year Times work performed: 1 -time per year Salmon BBO Times work performed: Move in 25 tables & chairs; leave box of bags; leave extra toilet paper; empty dumpster, have dumpster emptied after event 1 -lime per year Please Note: Unless otherwise listed above, base level of service does not include un anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. Tree Maintenance Maintenance staff time. supplies. etc. to complete misc. tasks such as watering, pruning, branch clean -up. etc... Mowing Mowing Trimming Weed Trimming Irrigation Start-up sprinkler system in the spring. 1-time per year Visits to park seasonatly to inspec* & adjust sprinklers, 110- visits to site time clocks. address dry spots, per season. and complete minor repairs as Average (ihr.) necessary. visit Winterfzelblow -out system fn the fall. 1-time per year Fertilizer Fertilize turf areas Aerate Aerate turf areas Attachment ^C" page 8 of 13 Time allowance for this task: 14 hours plus supplies & equipment Times per week: Weeks/Season: Times work performed: Times work performed: 3- applications per year Times work performed: 1-time per year Terrace View Park 26 26 26 Table & Garbage Can Placement & Time allowance for this Misc. Repairs & Inspections task: !.love tables and additional garbage cans out of storage and Into parks In the spring. Return tables end moat garbage cans back Into storage in the tall. Repairs: Miscellaneous repairs & inspections of fences, signs, backstops, drinking fountains. play equipment, benches, tables, garbage cans, etc... Restroom Cleaning & Litter Control Cleanings (includes supplies) Turf Sweeping in the spring. Weed Control Weed Control in the form of spraying weed killing chemical application. please Note: Unless otherwise listed above, base level of service does not inciude un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. 6.0 hours plus supplies & equipment 25.0 hours plus supplies & equipment Times work performed: 90 Sweeping Parking Lot(s) will be swept using the asphalt sweeper, in Spring and again in Summer. 2 -time per year Times work performed: 1-lime per year Times work performed: 1-time per year Tree Maintenance Maintenance staff time, supplies, etc. to complete misc. tasks such as watering. pruning, branch clean -up. etc... Mowing Mooring Trimming Weed Trimming Irrigation Start-up sprinkler system In the spring. Visits to park seasonally to inspect & adjust sprinklers. time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow -out system In the fall. Fertilizer Fertilize turf areas Aerate Aerate turf areas Attachment "C" page 9 of 13 Time allowance for this task: 28 hours plus supplies & equipment Weeks / Times per week Season: 1 26 28 i 23 Times work performed: 1 -time per year 150 - visits to site per season. Average (1hr.) visit 1 -time per year Times work performed: 3- applications per year Times work performed: 1 -time per year Valley Mission Park Table & Garbage Can Placement & Misc. Repairs & Inspections Time aJowance for this task: Move tables and additional garbage cans out of storage and into parks In the spring. Return tables and most garbage 6.0 hours plus supplies & cans back Into storage in the fall. equipment Repairs: Miscellaneous repairs & inspections of fences, signs. backstops, drinking fountains, play equipment, 25.0 hours plus supplies & benches, tables, garbage cans, etc... equipment Restroom Cleaning & Utter Control Times work performed: Cleanings (includes supplies) 120 Times work performed: Sweeping Parking Lot(s) will be swept using the asphalt sweeper, in Spring and again in Summer. 2 -lime per year Turf Sweeping in the spring. Weed Control Weed Control In the form of spraying weed killing chemical application. Remove sothern portion of corral fenceing in preparation for Winter sledding, Deliver & place straw bales in preparation far Water sledding. Maintain, replace and clean straw during sledding season. Check & replace outside lighting 1 -time per year Please Note: Unless otherwise listed above, base level of service does not include unanticipated repairs and maintenance due to mother nature & vandalism, A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maiatalned properties. Times work performed: 1 -time per year Sledding/Coasting Hill Times work performed: 1 -time per year 1 -time per year 80- visits per sledding season Re- Install southern portion of coral) fence at conclusion of winter sledding season 1 -time per year Lighting Time allowance for this task: 4.0 hours plus supplies & equipment Mowing Times per year Trimming 3 Weed & Brush Trimming 3 Restroom Cleaning & Litter Times work Control performed: Cleanings at Mirabeau (includes supplies ) Cleanings at Barker (includes supplies) Attachment "C" page 10 of 13 100 140 Times work Sweeping performed: Parking Lot(s) will be swept using the asphalt sweeper 1 -time per year Pathway will be swept 2 -times per year Times work Weed Control performed: Weed Control in the form of spraying weed killing chemical application. 1 -time per year Centennial Trail Please Note: Unless othernise listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. Mirabeau Point Park Irrigation Start -up sprinkler system in the spring. Visits to park seasonally to Inspect & adjust sprfnkters, time clocks, address dry spots, and complete minor repairs as necessary. Winterize/blow -out system in Mo%%ing Trimming Weed Trimming Mowing Fertilizer Fertilize turf areas Aerate Aerate turf areas Attachment "C" page 11 of 13 Times work performed: 1-time per year 100 - visits to site per season. Average (1 hr.) visit 1 -time per year Times per 1 1 1 Times work performed: 3- applications Times work performed: 1 -time per year 26 26 26 Table & Garbage Can Placement & Time allowance for this IVlisc. Repairs & Inspections Move tables and additional garbage cans out of storage and into parks in the spring. Return tables and most garbage cans back into storage in the 6.0 hours plus fall. supplies & equipment Repairs: Miscellaneous repairs & inspections of fences, signs, backstops, drinking fountains, ptay equipment, benches, tables, garbage 25.0 hours plus cans, etc... supplies & equipment Restroom Cleaning & Litter Control Times work performed: Weeks/Season: Cleanings (includes supplies) 90 Sweeping Parking Lot(s) will be swept using the asphalt sweeper, in Spring and again in Summer. Turf Sweeping in the spring. Weed Control Weed Control in the form of spraying weed killing chemical application. Please Note: Unless otherv4se Listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. task: Times work performed: 2-time per year 1 -time per year Times v.+ork performed: 1 -time per year Note; Myrtle Point is considered open space propety and is maintained in it's natural state. Forest Management Practices Thinning, tree removal, clean - up, etc... Weed Control Weed Control in the form of spraying weed killing chemical application. Misc. Repairs & Inspections Repair! inspect fences, gates, culverts, etc... Litter collection Attachment "C page 12 of 13 Litter Control Mrytle Point Time allowance for this task: Zero within current contract time - frame. Times work performed: 1 -time per year Time allowance for this task: 10.0 hours plus supplies & equipment Time allowance for this task: 10.0 hours plus supplies & equipment Please Note: Unless otherwise listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. L J Senior Center Senior Center 2003 Base Level of Service April 1st - May 31st Spokane County shall staff, operate and maintain all Senior Center Services. 2003 Effective June 1st 2003: With the exception of Maintenance, the City of Spokane Valley shall assume all responsibilities for staffing and operating Senior Center. June 1st 2003 + Time allowance per - Senor Center Maintenance Base Level of Service as follows: year Snow removal from parking lot, sand perking lot in response to icy conditions, repairimaintainlreplace doors, windows, walls, floors, toilets. sinks, drinking fountains, electrical components, lighting. Mechanicly service and repair Senior Center bus. 20D -hours plus supplies & equipment Please Note: Unless otherwise listed above, base level of service does not include un- anticipated repairs and maintenance due to mother nature & vandalism. A single account has been established within the contract to address un- anticipated repairs and maintenance for all contractually maintained properties. Attachment "C" page 13 of 13 0 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing X information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Public Participation Program GOVERNING LEGISLATION: RCW 36.70A - Growth Management Act PREVIOUS COUNCIL ACTION TAKEN: N/A BACKGROUND: A Public Participation Program is a necessary first step in initiating the City's Comprehensive Plan. The City Council adopted the Spokane County Comprehensive Plan as the City's Interim Comprehensive Plan prior to incorporation. The City will be developing a new Plan consistent with the guiding provisions of the Growth Management Act and the Countywide Planning Policies. The draft Public Participation Program is aligned with the recommendations enumerated in WAC 365 - 195 - 600(2) including visioning, the role of the Planning Commission, public meetings and hearings, notice, solicitation of written comments and the means of communication to be utilized in soliciting citizen comment. The draft will be submitted to the Planning Commission for review on August 28, 2003. RECOMMENDED ACTION OR MOTION: N/A BUDGET /FINANCIAL IMPACTS: N/A STAFF CONTACT: Marina Sukup, AICP, Community Development Director Sj6I � Valley COMPREHENSIVE PLAN Public Participation Program d raft RCW 36.70A.140 of the Washington Growth, Management Act requires that each city "establish and broadly disseminate to the public a public participation program ... for early and continuous public participation in the development" of the city's Comprehensive Plan. Consistent with the recommendations of the GMA which emphasize the involvement of the broadest cross - section of the community, including the involvement of groups not previously involved, the City of Spokane Valley adopts the following program for citizen participation in the planning process: 1. Visioning Process — This process provides Spokane Valley citizens an opportunity to establish a framework and context upon which the comprehensive plan will be based. Planning Commission meetings will provide the forum for the initial community visioning process. A draft "Vision" will be tested for consistency during the development of the Plan as the community identifies priorities and implementation strategies and updated accordingly. The ultimate "Vision" will be established at the conclusion of the planning process as a result of community participation. 2. Planning Commission. The Planning Commission will play a key role in establishing the City's dialogue with community members, hosting a series of meetings and workshops during the development of the Plan. The Planning Commission will evaluate information provided by the community and develop recommendations for submission to the City Council. 3. Citizen Survey — The City will conduct a statistically valid survey of the citizens of Spokane Valley. Survey questions will address specific issues of the comprehensive plan that will provide city staff, planning commission and city council with meaningful input for development of the comprehensive plan. 4. Public Meetings. Conduct a series of public meetings hosted by the Planning Commission on the preliminary draft comprehensive plan. This ensures that the City will meet the requirement for 'early and continuous" public participation in the comprehensive planning process. 5. Public hearings. A series of Public Hearings (not less than three) will be held before the Planning Commission to discuss the draft Plan. It is anticipated that at least two public hearings will be held by the governing body prior to adoption of the Plan. An additional public hearing will be held if substantive changes are made to the Plan document. 6. Public notice. The City will provide notice of all meetings and hearings pursuant to the requirements of RCW 36.70A.020, .035, and .140. 8/13/2003 _ - 1 draft 7. Written Comment. The public will be invited to submit written comments as each element of the Plan is developed, as part of any workshops or community meetings. Comments will be specifically solicited from residents, special interest organizations and business interests. Comments may be in the form of letters and other correspondence to the city regarding the plan or comments received electronically on the city's website. Log in all written comments received according to specific area of comprehensive plan. 8. Communications Programs & Informational Services — As staff and budgetary resources allow, the activities will be undertaken to ensure broad -based citizen participation: a. Comprehensive Plan newsletter — updating the community on planned meetings, workshops or other significant comprehensive plan events. Articles on topics related to the plan and a request for feedback from the community on topics related to the plan. The newsletter will be disseminated via the city's website, emailed to a mailing list and/or provided in paper copy as appropriate. b. Interest Groups — Contact local interest groups (i.e. Chamber of Commerce, home builders, environmental, neighborhoods, etc.) and arrange to meet and discuss relevant comprehensive plan issues. c. Community Workshops — Conduct community workshops hosted by the Planning Commission in different parts of the city to encourage neighborhood participation in the development of the comprehensive plan. These meetings will be held at neighborhood schools, churches or other community facilities. d. Press Releases & Public Service Announcements — Work with the local newspapers, radio stations and televisions stations to advertise and promote significant events related to the comprehensive plan. e. Provide written articles to local media for publication. f. Establish a Speaker's Bureau through the Planning Commission which will be available to address service clubs and interested citizen groups. g. Develop a database of interested citizens and provide regular correspondence concerning the status of Plan development. h. Identify key resource personnel representing agencies and groups whose plans will be integrated into the Comprehensive Plan, including but not limited to fire districts, utilities, libraries and school districts. i. Maintain a log of all public participation meetings, events and actions that the city engages in to provide documentation on the city's effort to meet the requirements of the GMA. 8)13/2003 2 Spo . Memorandum To: Dave Mercier, City Manager, Mayor and Members of City Council From: Marina Sukup, AICP, Community Development Director CC: Nina Regor, Deputy City Manager Date: September 4, 2003 Re: Spokane Valley Uniform Development Code The Department of Community Development, in consultation with the Department of Public Works, proposes to consolidate all development regulations within a uniform development code. The assessment of the need for such a Code and a timeline for implementation is attached. Attachments Assessment Implementation Schedule Preliminary Table of Contents 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 ♦ Fax: 509.921.1008 • cityhall @spokanevalley.org CITY OF SPOKANE VALLEY DEVELOPMENT REGULATIONS ASSESSMENT The current regulation of development is included in a variety of documents drafted by Spokane County over the years, as well as the provisions of the Uniform Codes adopted by the City at the time of incorporation. The regulations represent a veritable labyrinth of processes which are often duplicative and unnecessarily time - consuming, as well as rules which are ambiguous or even contradictory. In some areas, requirements are absent or in need of updating to be current with statutory or other requirements. In the case of the Uniform Codes, similar language may have an entirely different meaning in other regulations, including the zoning regulations. II. FINDINGS Development regulations would be better understood by the development community, city staff and the public, if the myriad regulations were integrated in a single place with a single set of definitions. Resolution of ambiguities and conflicts would also permit the streamlining of development review processes, thereby improving customer service. The format of some regulations, including the zoning regulations, should be revised for improved readability, and those provisions which do not apply to an urbanized area should be deleted. III. CONCLUSION Consolidation of all development regulations into a single Uniform Development .Code would permit the resolution of ambiguities and conflicts, and would allow the City to streamline its review procedures, resulting in both expedited and more consistent review and enforcement. IV. LIMITATIONS OF SCOPE Certain provisions of the zoning regulations will need to await full development of the Comprehensive Plan. Many others can and should be updated to delete references which no longer apply and to improve readability. Procedures should be streamlined and consolidated where possible. V. RECOMMENDED ACTION The City should initiate work on the Spokane Valley Uniform Development Code as soon as practical, establishing uniform definitions, reorganizing text and re- formatting to improve readability. Provisions which do not depend on the adoption of the Comprehensive Plan should move forward, while the format of those that do should be updated without necessarily a change in substantive rules. The SVUDC should include general provisions, administrative provisions, zoning regulations, building codes and local amendments, special zoning provisions (conditional and temporary use permits), Overlay zones (Critical Areas, Shorelines, Flood Hazard, Airport Hazard), subdivision regulations and development standards. Definitions, fee schedules, and other resource information should be included as appendices. The Code should be codified once a year with all supplemental ordinances approved by the City Council. A sample Table of Contents is attached. VI. PLAN OF ACTION The establishment of a Uniform Development Code with sections reserved for all topics should be adopted initially. Additional sections should be included as completed and approved. The provisions of the Zoning regulations should initially include existing permitted uses, although certain additional zoning districts should be considered initially e.g. an "Estate Residential District" that may provide for keeping of large animals on lots one acre or greater in size; an "office" and /or "Garden Office" to allow office development. Provisions of the Interim regulations which do not apply in the urbanized area should be deleted. The use of tables rather than straight text will alter the format, though not necessarily the substance of existing provisions. This format will facilitate future changes is use which result from the Comprehensive Planning process. Certain sections may be expected to take longer to complete as a result of the complexity of the current regulations., but also because some of the existing regulations remain extremely controversial within the development community. Representatives of the several sectors of the development community should be enlisted to work with the staff in streamlining review and enforcement processes, both to explore any weaknesses in the regulations, but also to initiate an education process within the ranks of those most affected by such rules. SPOKANE VALLEY UNIFORM DEVELOPMENT CODE ARTICLE I GENERAL PROVISIONS 1.01 Enactment 1.1 1.02 Purpose 1.1 1.03 Jurisdiction 1.1 1.04 Rules of Construction 1.1 1.05 Consistency with Comprehensive Plan 1.2 1.06. Definitions 1.2 1.07 Severability 1.2 1.08 Certificate of Occupancy & Compliance 1.2 1.09 -1.19 Reserved 1.2 1.20 Enforcement and Penalties 1.3 ARTICLE II ADMINISTRATION 2.01. Planning Commission... 1.5 2.02. Hearing Examiner 1.5 2.03. Community Development Department 1.7 2.04. Building Official 1.7 ARTICLE III BUILDING REGULATIONS 3.01. Adoption of Building Codes 3.1 3.02. Amendments to the 1997 Uniform Building Code 3.2 3.03. Amendments to the 1997 Uniform Fire Code 3.12 3.04. Amendments to the 1997 Uniform Residential Code 3.42 3.05. Amendments to the 1997 Uniform Mechanical Code 3.56 3.06. Amendments to the 1997 Uniform Plumbing Code 3.63 3.07. Amendments to the 1997 Uniform Fuel Gas Code 3.72 3.08. Amendments to the 1999 National Electrical Code 3.77 3.09. Amendments to the International Energy Code 3.79 ARTICLE IV ZONING REGULATIONS 4.01. Applicability 4.1 4.02. Zoning Districts 4.1 4.02.1 Zoning Districts Established 4.1 4,02.2 Zoning District Map 4.1 4.02.3 Zoning District Boundaries 4.2 4.02.4 Compliance Required 4.2 4.02.5 Schedules and Illustrations 4.2 4.02.6 New and Unlisted Uses 4.3 4.03. Newly Annexed Territory 4.3 4.04. Platting Property 4.4 4.04.2 Creation of Building Site 4.4 4.05. Non -conforming Uses • 4.4 4.06. Changes & Amendments 4.6 4.07. Reserved 4.8 4.08. District Purpose and Supplemental Use Regulations 4.8 4.08.1 "R -1° Single Family Residential Estate District 4.8 4.08.3 "R -3.5" Single Family Residential District. 4.8 4.08.4 °R -7" Residential District 4.9 4.08.5 °TH" Townhome Residential District 4.9 4.08.6 "MF -12" and "MF -22" Multifamily Residential District 4.9 4.08.7 "MH" Mobile Home Park District 4.9 SPOKANE VALLEY UNIFORM DEVELOPMENT CODE 4.08.8 "GO" Garden Office District 4.9 4.08.9 "0" Office District 4.10 4.08.10 "B -1" Local Retail District 4.10 4.08.11 "B -2" Shopping Center District 4.10 4.08.14 "B -3" Corridor Commercial District 4.10 4.08.15 1-3" Office Technology District 4.11 4.08.18 1-2" and "1 -31" Industrial Districts 4.11 4.08.19 "PD" Planned Unit Development District 4.11 4.08.20 " CF" Community Facilities 4.15 4.10. Residential Accessory Use Regulations 4.19 4.11.- 4.14 Reserved 4.21 4.15. Height and Area Regulations 4.21 4.15,1. General Provisions 4.21 4.15.2. Residential Height and Area Regulations 4.22 4.15.3. Non - Residential Height and Area Regulations 4.23 4.20. Permitted Principal & Accessory Uses 4.25 4.20.1 General Provisions 4.25 4.20.2 Schedule of Principal Uses 4.26 4.20.3 Schedule of Accessory Uses 4.31 ARTICLE V SPECIAL ZONES 5.01 Floodplain Hazard 5.1 5.02 Airport Hazard (Reserved) 5.03 Critical Areas (Reserved) 5.04 Shoreline Management (Reserved) 5.04 Historic Preservation (Reserved) ARTICLE VI SPECIAL ZONING PROVISIONS 6.01. Conditional Use Permits 6.1 6.01.1 Purpose 6.1 6.01.2 Permitted Uses 6.1 6.02.3 Approval Process and Procedure 6.1 6.01.4 Specific Use Permit Requirements 6.1 6.01.5 Permitted Uses 6 . 2 6.01.6 Revocation of Conditional Use Permit 6.5 6.02. Special Use Permits 6.5 6.02.1 Adult Retail Uses 6.02.2 Firearms and Explosives Sales and Service 6.7 6.04 Temporary Use Permits 6.7 6.05 Site Plan Approval 6.11 6.05.1 Purpose 6.11 6.05.2 Applicability 6.11 6.05.3 Site Plan Details 6.11 6.05.4 Review Standards 6.13 ARTICLE VII ZONING DEVELOPMENT STANDARDS 7.01. Purpose 7.1 7.02. Applicability 7.1 7.03. Non - Residential Design Standards 7.1 7.03.1. Parking Garages 7.1 7.03.2. Exterior Facade Materials 7.1 7.03.3. Roof Top Mechanical Equipment 7.1 7.03.4. Outdoor Lighting 7.2 SPOKANE VALLEY UNIFORM DEVELOPMENT CODE 7.03.5. Utility Services 7.6 7.04. Off- Street Parking and Loading 7.7 7.04.1. Vehicle Parking 7.7 7.04.2. Off - Street Loading 7.12 7.04.3. Disabled Parking Requirements (RESERVED) 7.05. Landscaping Requirements 7.14 7.05.1. Standard Planting Materials 7.14 7.05.2 Multi- Family District & Non - residential Landscaping Requirements 7.14 7.05.3 Tree Planting Requirements for New Single Family Res. Development 7.17 7.05.4 Landscape Maintenance Requirements - All Districts 7.17 7.05.5 Landscape /Irrigation Plan Approval 7.06. Tree Preservation Requirements 7.18 7.06.1. Applicability 7.18 7.06.2. Tree Removal Permits 7.18 7.06.3. Calculation of Credits 7.18 7.06.4. Replacement of Trees 7.19 7.06.5. Guidelines for Tree Protection 7.20 7.07. Fences and Walls 7.21 7.08. Performance Standards 7.24 7.09. Sign Regulation 7.28 ARTICLE VIII SUBDIVISION REGULATIONS 8.01. Purpose 8.1 8.02. General Provisions 8.1 8.02.1. Jurisdiction 8.1 8.02.2. Applicable Law 8.3 8.02.3. Superseding Regulations 8.3 8.02.4. Amendments 8.3 8.02.5. Administrative Approval of Certain Minor Plats, Amending Plats and Replats 8.3 8.03. Plat Regulations 8.4 8.03.1. In General 8.4 8.03.2. General Development Plan 8.4 8.03.3. Preliminary Plat 8.6 8.03.4. Final Plat. 8.9 8.03.5. Combination Plat 8.11 8.03.6. Replat Procedure without Vacating Preceding Plat 8.11 8.04. Permits Required 8.12 8.05. Subdivision Standards 8.13 8.05.1. Street Design Standards 8.14 8.05.2. Thoroughfare Design Standards 8.21 8.05.3. Thoroughfare Design Standards 2 8.26 8.05.4. Private Street Guidelines 8.16 8.05.5 Design Details 8.27 8.05.6. Sidewalk Standards 8.27 8.05.7. Alleys 8.28 8.05.8. Median Cuts 8.28 8.05.9. Fire Lanes 8.28 8.06. Lot Design 8.28 8.07. Blocks 8.29 8.08. Water Utilities Standards 8.29 8.09. Wastewater Utility Standards 8.30 8.10. Extensions of Water and Wastewater Mains 8.30 8.11. Street Lights 8.31 8.12. Landscape Irrigation Systems 8.32 8.13. Drainage Requirements 8.33 SPOKANE VALLEY UNIFORM DEVELOPMENT CODE 8.14_ Monuments & Markers 8.34 8.15. — 8.19. Reserved 8.20. Mandatory Homeowner's Association 8.34 8.21. -8.24. Reserved. 8.25. Escrow Policies and Procedures. 8.36 8.26. Payment of Fees, Charges and Assessments 8.37 ARTICLE IX THOROUGHFARE PLAN 9.01. Thoroughfare Plan 9.1 ARTICLE X PARKLAND DEDICATION (Reserved) 10.01 Purpose 10.1 10.02 Requirements for Residential Development 10.1 10.03 Prior Dedication, Absence of Dedication 10.1 10.04 Money -in -lieu of Land 10.1 10.05 Comprehensive Plan Considerations 10.1 10.06 Special Fund; Right to Refund . 10.2 10.07 Annual Report Required 10.2 ARTICLE XI IMPACT FEES (Reserved) APPENDICES A. Definitions B. Filing Fees and Charges C. Trees and Plants D. Planned Development Districts F. Standard Construction Details - Paving -TxDot G. Standard Construction Details — Storm Drainage H. Standard Construction Details - Water - Sanitary Sewer Standard Construction Details — Trails J. Traffic Impact Analysis Requirements SPOKANE VALLEY UNIFORM DEVELOPMENT CODE i 3 Zoning (Format ony) 4 Special Zones 5 Special Zoning Provisions 9/1/2003 9/12003 9/12003 12/1 /2003 7/1/2004 7/30/2004 13.2w 43.8w 48w ID 2 Task Name General & Administrative Building Code & Local Amendments 6 Development Standards 7 Subdivision Regulations 8 Appendix A - Definitions 9 Appendix B - Fees 10 Appendix C - Engineenng Design Details Start 9/1/2003 9/1/2003 9/1/2003 9/12003 9/1/2003 9/1/2003 9/1 /2003 Finish 10/1 /2003 10/31 /2003 4/1/2004 3/12004 12/12003 1/1 /2004 4/30/2004 Duration 4.6w 9w 30.8w 26.2w 13.2w 17.8w 35w 03 03 Sep Oct 04 03 Nov Dec Jen Q1 04 Feb Apr Apr Q2 04 May Q3 04 Jul Aug Sep Meeting Date: 9 -9 -03 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing XX information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Memorandum re: Payment to City for Street Vacations GOVERNING LEGISLATION: RCW 35.79 PREVIOUS COUNCIL ACTION TAKEN: Previous memo to Council regarding procedural requirements for processing street vacation requests. One question remained unclear, whether the City could require payment for land being vacated. This memo answers that question in the positive. BACKGROUND: When the Council last reviewed the street vacation issue, I was not sure whether the Council could require payment when the street or easement was not paid for by public funds. In researching the issue in appellate case law, there appeared to be a conflict between case law from 1970 and back, and statutory provisions from 1949 on. After talking to Pat Mason at MRSC on Friday, he agrees that there exists what appears to be a conflict in the language between case law and statutory requirements. That being said, he stated that the widely accepted process on requiring payment is to follow the statutory requirements. Another issue is whether to charge a vacation application processing fee. Many cities impose such fees. Spokane's is $300. This leaves the Council with several policy issues to resolve: (1) whether or not to charge for the vacated properties, (2) whether or not to adopt an ordinance essentially restating RCW 35.79, and (3) whether to charge a vacation application processing fee. OPTIONS: (1) Require payment or not for vacated streets. (2) Adopt or not adopt a vacation ordinance. RECOMMENDED ACTION OR MOTION: Staff recommendation is to require payment consistent with the statute, and not to adopt an ordinance. The procedures for vacating a street are straight - forward enough. The Council may want to consider requiring payment for the value of the street, but not requiring an application processing fee. BUDGET /FINANCIAL IMPACTS: Requiring payment for the value of the land would increase city revenues. However, RCW 35.79.030 requires that one -half of the revenue received by the city as compensation for the area vacated must be dedicated to the acquisition, improvement, development and related maintenance of public open space or transportation capital projects in the city. STAFF CONTACT: Cary P. Driskell CITY OF SPOKANE VALLEY Request for Council Action ATTACHMENTS: Memorandum re: Payment to City for Street Vacations. Spo"kan�� Memorandum To: City Council From: Cary P. Driskell CC: Nina Regor, Stan Schwartz Date: September 2, 2003 Re: Payment to City for street vacations The policy choices are as follows: 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 • Fax: 509.921.1008 • cityhall @spokanevalley.org 1 previously provided the Council with a memorandum regarding street vacations generally. There were two issues left unresolved. The first issue was whether the City should charge applicants for the value of the real property being vacated, and if so, in what amount. A portion of the previous memo discussed the payment issue, but it will be summarized here for clarity. This memo assumes the future needs assessment for road purposes has been answered in the negative. If the street or alley has been part of a dedicated public right -of -way for twenty -five years or more, or if the subject property, or part thereof, were acquired at public expense, the City may require the owners of the property abutting street or alley to compensate the City in an amount that does not exceed the full appraised value of the area vacated. One half of the revenue received by the City for such vacations must be dedicated to the acquisition, improvement, development, and related maintenance of public open space or transportation capital projects within the City. lithe property sought for vacation has been owned for less than 25 years, or was not paid for by public funds, the City rm require up to one -half the appraised value of the property. 1. Not require payment for any street vacations. 2. Require some percentage between 1 and 100% of the appraised value for properties dedicated for road purposes at least 25 years or paid for by public funds. 3 Require some percentage between 1 and 50% of the appraised value for properties dedicated for road purposes for less than 25 years or not paid for by public funds. The statutes on payment for vacated land 'were originally adopted in 1949. Since that time, there have been various provisions for requiring payment for vacated right -of -way. Although 1 have some remaining questions of how to reconcile early case law with the newer statutory language, I discussed this issue with Pat Mason at MRSC, and he assured nie the accepted approach is as outlined in 1 -3, above with regard to payment. He did agree with me that there appears to be an apparent conflict between the statutory language and case law up through at least 1970 where the City only owns an easement over the property for road purposes. Despite that, most cities require payment, and get it. 1 also could not find anything requiring us to adopt an ordinance setting forth a process for handling vacation requests. It appeared to me that we could simply do them as set forth in the RCW. I checked with Pat Mason at MRSC to find out if we need to adopt an ordinance. He responded today that there appears to be no requirement that cities adopt street vacation ordinances, although most cities have them. If we did adopt such an ordinance, it would essentially look like the provisions in RCW 35.79. If you have any questions, please let me know. Cary P. Driskell Deputy City Attorney Spokane . ( � 2 Memorandum To: Mayor DeVleming, Honorable Council members From: Neil Kersten, Public Works Director Thru: Dave Mercier, City Manager Date: September 2, 2003 Re: Sullivan Road and 4 Avenue Signal Project 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 • Fax: 509.921.1008 • cityhall @spokanevalley.org At the August 19, 2003 Council Work Session Councilmember Schimmels asked about the funding of the Sullivan Road and 4` signal Project. This memo is in answer to his question. Our public works staff contacted the county and learned the following: • A Hazard Elimination Safety grant has been approved for this signal project. • Grant funds are obligated in stages as work on the project is completed. The three stages for obligating funds are 1) preliminary engineering (PE), 2) right-or-way purchase (RW), and 3) construction (CN). • Grant funds for PE have been obligated and the PE work has been completed. Spokane County has requested obligation of RW funds but has not received authorization yet. Once the county gets authorization, negotiations for purchasing a small amount of right -of -way for the signal poles will begin. • Upon acquiring the needed right -of.- -way, a request will be put forth for obligating the construction funds. The total cost of this project is estimated to be $164,000. The City's share of these costs is estimated at $16,00.0. The project is scheduled for construction next spring (assuming the purchase of right - of-way doesn't take too long). The project was originally scheduled for construction this year but was delayed because of the incorporation of the valley. I trust this addresses Councilmember Schimmels' question. Please contact me or Steve Worley if you have any additional questions regarding this project. Spokane Valley Planning Commission Approved Minutes Council Chambers — City Hall 11707 E. Sprague Ave. August 14, 2003 L CALL TO ORDER Bill othmann, Planning Commission Chair, called the meeting to order at 6 :30 p.m. 1I. PLEDGE OF ALLEGIANCE Ti e Commission and audience recited the .Pledge of Allegiance, 11I. ROLL CALL Fred Beau]ac — Present Bob Blum — Present David Crosby — Present Gail Koglc — Present Bill Gothmann — Present Tan Robertson — Present John 0, Carroll - Present IV. APPROVAL ROVAi• OF AGENDA Iran Robertson moved that the agenda be approved as presented. Fred Beaulac seconded the motion, notion passed unanimously. V. APPROVAL OF MINUTES It was moved by David Crosby and seconded by Gail Ko„ 1e that the minutes of the .wally 23, 2003 Planning Commission iueetthg he approved as presented. 11 otian passed unanimously. VI. PUBLIC COMMENT .Five. citizens signed up to give public testimony. Commission Chair Bill Crathmann. allowed five minutes at the podium to people speaking on behalf of a group and three minutes to individuals. Chuck Hafner, 4710 S. Woodruff, Spokane Valley, OVA Mr. Hafrier and his family live in the Ponderosa Fifth Addition area, At one time this neighborhood was zoned as a suburban single- family dwelling area which allowed horses and other large animals. Yesterday. Mr- Rainer discovered that Spokane County had clanged the zoning to that of an turban area The citizens living in this area were never aware of the zoning change. J..e asked that the .Planning Commission to do whatever need to be done to have the area rezoned back to its original zoning status. Robert E. Lee, 15620 E. 14 Avenue, Spokane Valley, WA. Mr. Lee and his family live in the 'Ponderosa Fifth Addition area. He wished to affirm lair- J layer's statements and stated that keeping horses had been the primary reason for his selection of a home site. He urged the Planning Commission to reconsider the present development regulations to allow horses on their property. Lisa Young, 1512 S. Shamrock, Spokane Valley, WA Ms. Young presented the Planning Conunission with a letter and a petition signed by residents of Rotchford Acre Tracts. (attached) Myrna Gothmann, 10010 E. 48 Spokane Valley, WA Mrs. Gothmann affirmed that no one in the area where she and her family reside realized that their property had lost its original zoning status. Gene Strunk, 12902 E. Broadway, Spokane Valley, WA Mr. Strunk strongly urged the Planning Commission to recommend adoption of the draft Junk Vehicle Ordinance to the City Council. He stated that junk vehicles adversely affect property values and that this Ordinance is important for the protection of tax payers in our community. Jean Gulden, 10226 E. 44 Spokane Valley, WA Ms. Gulden also lives in the Ponderosa area. She affirmed the previous public comments made about her neighborhood, and asked the Planning Commission to take the requested rezoning action so their neighborhood would not be degraded. Mr. Gothmann closed the public comment session at 7:00 p.m. The Planning Commission discussed its role in this and other rezone requests made at previous meetings. Marina Sukup explained that she would be giving a brief presentation at the end of the meeting with regard to the land use element of Comprehensive Plan Development. There is a citizen participation plan built into the process. She encouraged concerned citizens from the Ponderosa area to stay for this presentation. VII. COMMISSION REPORTS There were no Commission reports. VIII. ADMIN.[STRATIVE REPORT Marina Sukup introduced the City's new Current Planning Manager, Kevin Snyder, to the Planning Commission. IX. COMMISSION BUSINESS A. OLD BUSINESS: Public Hearing: Junk Vehicle Ordinance Bill Gothmann, Planning Conunission Chair, declared the Public Hearing open at 7:07 p.m. 2 \ 1 An Ordinance of the City of Spokane Valley, Washington, Regulating the Storage of Junk Vehicles. on. Private .Property. Scott Kuhta, Planner, provided the Commission and the audience with a brief outline of the process used to develop the proposed Junk Car Ordinance., Cary Driske]I, Deputy City Attorney, reviewed the proposed Ordinance and provided the Flaming Commission with a copy of new abatement procedural changes which were recommended by the Washington Cities insurance Authority (WCJA). The Commission had no questions for the stale- Mr. Gothmann opened the Rearing up to Public Testimony at 7 :22 p.m. Jirn Poston, P.O. Sox 117, Spokane Valley, WA Mr. Poston is an opponent of the Ordinance. As an old car enthusiast, he doesn't think that the proposed Ordinance gives people who build street rods enough time to complete their work. Dale Hearn, 12714 E. Guthrie, Spokane Valley, WA Mr. Ream spoke in support ofthe Ordinance and presented photos of an existing property. He noted that the junk cars shown are used in demolition derbies and then returned to the property and stored in the gauge or driveway. The demolished parts are scattered around the yard and the cars drip oil and antifreeze down the driveway, into the street, and into the and into the public water system, creating a safety hazard to animals children and adults. He encouraged the .Planning Commission to recornmend adoption of the Junk. Car Ordinance to the City Council A. Gene 'Hinkle, 11916 E. Sprague Avenue, Spokane Valley, WA Dr. Hinkle is a proponent of the Ordinance. His neighbor in a business . zone opened a nuie -up shop and has proceeded to store old cars on site for over a year, Dr. Hinkle presented photos to the Planning Commission For reference and permanent record. He encouraged adoption of the Ordinance, George Fcldinillcr, 14023 E. 25 Court, Spokane Valley, WA Is an opponent of the Ordinance. He believes that teri years would be a more adequate timefraine for hobbiests- Following discussion of screening, Mr. Driskell affirmed that screening from the view of an individual standing a ground level view would bc. considered reasonable, rather than from someone looking down from a deck. Grant Rice, E. 16620 Valleyway, Spokane Valley, WA Mr. Rice is a proponent of the Ordinance. He was originally against the Ordinance, but has worked with staff to rewrite the trouble spots. Mr. Rice now encourages the Planning Commission to recommend adoption of the Ordinance to the City Council. John Baldwin, E. 11905 22 " Avenue, Spokane Valley, WA Mr. Baldwin is a proponent of the Ordinance. He works for University SCOPE and takes many photos of junk cars, so he understands the impact this Ordinance will have on the community. Mr. Baldwin believes the proposed Ordinance is fair, and thinks the City has done an outstanding job to develop it. Lloyd and Marianne Thomas, 12920 E. 26 Avenue, Spokane Valley, WA (testimony provided via email and placed into permanent record) Mr. and Mrs. Thomas are proponents of the Ordinance. They are pleased with the City's efforts to clean up neighborhoods and private property. (Attached) Gene Strunk, 12902 E. Broadway, Spokane Valley, WA Mr. Strunk is a strong proponent of the Ordinance. He testified earlier during the public comment session, and wanted to reaffirm his support. Chuck Hafner, 4710 S. Woodruff, Spokane Valley, WA Mr. Hafner is a proponent of the Ordinance. Derelict cars located on three sides of his property in the Ponderosa area adversely affect the value of his property. Ron Sythc, 12715 E. Guthrie Drive, Spokane Valley, WA Mr. Sythe supports the proposal and testified that the junk cars leaking toxic chemicals into the street are a danger hazard. Mr. Gothmann closed the Public Testimony portion of the Hearing at 7:52 p.m. The Planning Commission took a brief break. The Planning Commission recommended that the following changes be made to the language of the Ordinance: SECTION 3: "Except as provided in Section 4, all junk vehicles or parts thereof placed, stored or permitted to be located..." SECTION 7, Part D: The lien shall be subordinate to all previously existing special assessment liens imposed on the same property and shall be superior to all other liens, except for state and county taxes, with which it shall share priority". Ian Robertson moved that the amended City Ordinance Regulating the Storage of Junk Vehicles on Private Property, along with related changes to the City's Zoning Code, be recommended to the City Council for adoption. Fred Beaulac seconded the motion. Motion passed unanimously. 4 -- B. NEW BUSINESS Study Session — Adult Oriented Business Regulations Scott Kuhta presented the Planning Commission with an overview of the background and zoning regulations for Adult Oriented Businesses in the Spokane Valley. City Council placed a six -month moratorium on establishment of new adult businesses in early April. This moratorium is near its end staff has proposed an extension. Debi Alley Administrative Assistant The Public Hearing ended at 8:25 p.m. Presently, there are only three areas in the Spokane Valley where a new adult business can locate. Development of policies and procedures will be handled slowly and carefully. Planning staff will continue to study the issue and provide the Planning Conunission with further detailed information. Comprehensive Plan/.Land Use Presentation Ms. Sukup briefed the Planning Conunission on the Land Use element of the Comprehensive Plan, noting that the schedule for completion of the Plan is aggressive. A preliminary draft should he available by the Summer 2004. X. FOR THE GOOD OF THE ORDER Bill Gothmann requested that the Planning Commission meet for a special Vision Development Session in September. He handed out revised copies of his draft Vision Statement. Ms. Sukup will facilitate the session. It was determined that there will be a Vision Development Workshop on Thursday, September 11, 2003, from 5:00 — 6:30 p.m. in the Council Chambers preceding the regularly scheduled Planning Commission meeting. The next meeting of the City of Spokane Valley Planning Commission will be on Thursday, August 28, 2003, from 6:30 — 9:30 p.rn. in the Council Chambers. XI. ADJOURNMENT There being no further business, the meeting was adjourned at 9:30 p.m. SUBMITTED: APPROVED: 13111 Gothmann Chairman Sf61: .//c Valley Memorandum To: Dave Mercier, City Manager and members of Council From: Mac McDonald, Public Works Supt through Neil Kersten, Director of PW Date: September 3, 2003 Re: Stiles Traffic Complaints 11707 E Sprague Ave Suite 106 • Spokane valley WA 99206 509.921.1000 • Fax: 509.921.1008 • cityhallpspakanevalley.org Vernon and Dorothy Stiles, who live at the intersection of Montgomery and Sargent, have had long- standing concerns about truck traffic, vandalism, reckless driving, and cut - through traffic in their vicinity. Southbound traffic on Argonne, particularly drivers whose destination is in the Yardley area, find the Montgomery/Sargent/ Knox route preferable to remaining on Argonne to Broadway. Montgomery was posted as a no truck (local only) street several years ago during construction on Argonne and Mullan, and those signs have remained in place. The surrounding neighborhoods are residential in character, except the commercial corridor along Argonne and the North side of Montgomery, where a large truck rental business stores and maintains many of their vehicles (see pictures). A mini- storage facility is also located on the North side of Montgomery. These businesses generate considerable traffic which is The Stiles' would like to have both Montgomery and Sargent: dead end in front of their property. Staff feels that is not an appropriate solution given traffic circulation requirements. The following is a list of actions and /or meetings with the Stiles: . 1. The County installed a No Trucks (local deliveries only) sign was installed during construction of the Argonne/Mullan couplet several years ago —that sign has remained in place. 2. In January, I met with the Stiles, and as a result of their concerns, had an advance warning sip installed about 300 feet ahead of the intersection. 3. The police have met with the Stiles, and have targeted the area for increased enforcement. 4. The City Engineer has met with the Stiles, both in the office and on the site, and feels that all typical signage and actions appropriate to the situation have been taken. 5. We agreed, as a "last ditch" effort to call attention to the curve, to install a Type 3 barricade with an attached arrow at the intersection to increase the visibility of the warning. That barricade was installed on Tuesday, September 3 (sec attached photo). At this point, staff feels that every reasonable accommodation to the traffic situation in this location has been taken. 337 233 Vis 49050 413303 1 4.8051 40362 48305 4 fit -34 84 46 -1 84 46 %Au-40-- 4AY:3 84 48242 413732 4.0243 40238 4.02r 40235 4.0240 40234 JR -3.S 40241 40231 40244 40230 40245 40304 40308 40301 03 u1t -384 46 J AT • =u un,: 0..0.00 public • rRco existln map SOUTC I Map;faatui from all so! Jieve :bi eri; adjusted tc ;:ahie:ie th _. L a. best:fit {; - , {p0•NOT,�� MEASURE on this`ma .determine distance 0 the grount 4 L i rm m Spokane jUatley Memorandum To: Dave Mercier, City Manager, Mayor and Members of City Council From: Marina Sukup, AICP, Community Development Director CC: Nina Regor, Deputy City Manager Date: September 4, 2003 Re: 1111 S. Timberlane Drive — Mr. Lowe 11707 E Sprague Ave Suite i06 • Spokane Valley WA 99206 509.921.1000 • Fax: 509.921.1008 • cityhall @spokanevalley.org The property is located in the Rotchford Acres Tract east of Sullivan Road. The subdivision was established over twenty years ago. Until January 15, 2002, the property was zoned Suburban Residential -1 (SR -1). This designation permitted Home Professions with the issuance of a home profession permit and Home Industry with a Conditional Use Permit. The adoption of the Comprehensive Plan and the Phase I Development Regulations changed the zoning to Urban Residential 7*. This classification continues to allow Home Professions with a permit but does not permit Home Industry. Staff did evaluate whether Mr. Lowe's use of the property could be considered as either a Home Profession or Home Industry, concluding that it could not qualify under either characterization. The Interim Zoning Code adopted by the City contains provisions for a variance to .. . "(a) ensure that the adjustment shall not constitute a grant of special privilege inconsistent with the limitations upon other properties in the vicinity and similar zone classification in which the property is situated, (b) ensure that the intent and purpose of the Zoning Code is maintained with regard to location, site design, appearance, landscaping and other features of the proposal and (c) protect the environment, public interest and general welfare, and that the following circumstances are found to apply: a. Because of special circumstances applicable to the property, including size, shape, topography, location or surroundings, the strict application of the Zoning Code creates practical difficulties and is found to deprive the property of rights and privileges enjoyed by other properties in the vicinity and similar zone classification; and b. That the granting of the variance will neither be materially detrimental to the public welfare nor injurious to the property or improvements in the vicinity and zone in which the property is located." (Interim Zoning Code Section 14.404.082) The property is without problems of size, shape, or topography and is located on a residential street. The surrounding neighborhood is exclusively residential in character. 1111 S, Timberlane September 4, 2003 Page 3 Fallowing Mr. Lowe's presentation at the City Council on August 26, 2003, Community Development Staff met with Mr. and Mrs. Lowe on August 29, 2003, to advise them of the findings of our investigation. They were not pleased and left the meeting abruptly. Attachments Code Enforcement Summary Photographs Tax Data SUMMARY 1111 S. Timberlane Dr. August 29, 2003 After reviewing the taped testimony of Mr. Lowe, given before the City of Spokane Valley Council on August 26, 2003, I've been directed to provide a brief summary of the events leading up to this testimony. The following reflects niy investigation and findings. June 27, 2003 - Upon receipt of the initial complaints, I conducted a drive by investigation of 11.11 S. Timberlane Drive. No one was home at the time, so :I: deposited my business card with a note wedged into his mailbox door. As is reflected in the photographs, Mr. Lowe's property and operation are impressive, in cleanliness and organization. After speaking directly with Mr. Lowe that afternoon, he informed me that he operated a transfer point for personnel, vehicles and supplies out of his home. He also expressed a concern that his neighbors were upset and requested they directly contact him to work it out. 1 told him I would encourage his neighbors to contact him. • During this conversation 1 did compliment Mr. Lowe on his operation. This is where 1 believe my compliments were taken out of context. In no way did 1 imply that his operation was acceptable or approved. As yet my investigation was just beginning and 1 had no idea of the scope of his business. We closed the conversation. I determined that based upon the evidence I had, there was no zoning violation. 1 agreed to encourage direct communication between the neighbors and himself and based upon our conversation, 1 asked the receptionist to explain to additional complainants that it appears there is no zoning violations. I was also left: with the impression that Mr. Lowe did not operate his business out of his home, strictly a "transfer point ". I enjoyed the conversation as Mr. Lowe is a pleasant and articulate individual. July 1 thru 3. 2003 - The receptionist continued to receive numerous complaints about the operations occurring on 1111 S. Timberlane. I spoke directly with two of the complainants, who wished to remain anonymous, explaining my understanding of what was occurring at this location. I also encouraged both complainants to contact Mr. Lowe directly, both kindly declined stating their preference to remain - anonymous. July 7, 2003 — Received a phone call from the husband of a complainant. He wanted me to look at the photographs and take his testimony on what he observes every day and night. This complainant asked to be advised of all proceedings. After reviewing all the evidence provided, the scope of Mr. Lowe's operation was abundantly evident. At this point 1 re- opened the complaint file and changed the course of the investigation. July 10, 2003 — I sought council from the Deputy City Attorney regarding my attempt to mediate a settlement between Mr. Lowe and his neighbors. De advised me that this is not a good idea as the City of Spokane Valley needs to remain neutral and enforce the existing zoning codes. July 16, 2003 — Sent Mr. Lowe the first voluntary compliance request and informed the complainants of the status. August 14, 2003 — Sent Mr. Lowe the second voluntary compliance request and informed the complainants of the status. Since this time I have had numerous conversations with the original complainant and many other complainants. In addition, one face to face conversation with Mr. Lowe. Chris A. Berg Code Enforcement Officer City of Spokane Valley 1111 S. Timberlane Drive Location: Rotchford Acre Tracts Lot 1 Block 4 Property Number 45243.0401 Existing Zoning: UR 7* Land Use: Residential Improvements: Dwelling, Attached Garage, General Purpose Building, Other Fencing and Screening: 6 foot Cyclone w /privacy Slats encompassing 75% of lot Adjacent Land Uses: Residential Initial Complaint Received: 06/30/2003 Subsequent Complaints: Numerous verbal 3 Additional complainants Code Enforcement Contact: 07/01/2003 Initial site visit Two telephonic conversations and three site visits from 07/01 thru .07/14 (see file) Under the interim zoning provisions, the use complained of might be characterized as a Home Industry or a Home Profession. The requirements for a Home Profession as an Accessory Use with which the use does NOT comply are as follows: Home Professions (Interim Zoning Code 14.300.100) 1. 2. The use, including all storage space shall .not occupy more than 49% of the residence's livable floor area. No home profession shall occupy a detached accessory building. All storage shall be enclosed within the residence. 3. Only members of the family who reside on the premises shall be engaged in the home profession. 8. Traffic generated which exceeds the following standards shall be prima fascie evidence that the activity is a primary business and not a home profession. a. The parking of more than two customer vehicles at any one time. b. The use of loading docks or other mechanical loading devices. c. Deliveries of materials or products at such intervals so as to create a nuisance to the neighborhood. 9. The hours of operation for a home profession shall be limited from seven a.m. to ten p.m. The applicant shall specify on the Home Profession permit the hours of operation. 10. A Home Profession permit shall be issued by the Department per fee established by the Board. A Home Industry is not permitted in a UR -7* district, but where allowed requires a Conditional Use Permit. The use does NOT comply with Home Industry requirements as follows: Home Industry. (Interim Zoning Code 14.616.240.4) b. The use shall be carried on in a primary residence or may be allowed in accessory detached structures which are not, in total larger than two times the gross floor area of the primary residence; c. Only members of the family residing on the premises and no more than two employees outside the family may be engaged in the home industry; e. Window and outdoor displays may be approved by the Hearing Body. h. Parking, traffic, and storage requirements shall as approved by the Hearing Body. RESULTS OF INVESTIGATION a. No permit was issued by Spokane County for a Home Profession. b. Home Industry is not permitted in a UR -7' Zoning District. c. Current operations do NOT meet the requirements for either: i. Property owner acknowledges eight employees ii. Hours do not conform to 7 am.m -10 p.m. requirements of a Home Profession iii. Use of accessory structure will not qualify activity as a Home Profession _ "3114 Legal Description ROTCHFORD ACRE TRACTS L1 B4 Taxpayer - LOWE, PATRICIA A & ROBERT H c/o Sales Sale Date 11/13/2002 02/1812003 Sale Price Sale Instrument Excise Number $0.00 QuIt Claim Deed 200220091 $180,000.00 Statutory Warranty D 200302671 Taxpayer Sales History (prior to 1999) Qualified) Sale Date Sale Price Sale Instrument Unqualified 03/12/1982 $72,742.00 CONVERTED FROM SGM Unqualified 12/06/1978 $61,900.00 CONVERTED FROM SCM Unqualified 08/29/1977 $50,000.00 CONVERTED FROM SCM Unqualified Vacant/ Improved Transfer Improved NORMAL SALE Improved NORMAL SALE Improved NORMAL SALE Verification VERIFIED VERIFIED VERIFIED Improvements Improvement ID Improvement Type Improvement Description D Dwelling Dwelling 001 Other Attached Garage 01 Other 02 Other General Purpose Bldg x Other Features Year Built Size . 1977 1,248 0 528 1985 1 1996 1,440 Unit of Measure • SF SF SF SF Features Improvement Type Improvement Description Feature Built -in Dishwasher Feature Fireplace Feature Range & oven combination Size 1 2 1 Unit of Measure IT Owner LOWE, PATRICIA A & ROBERT H Taxpayer - LOWE, PATRICIA A & ROBERT H c/o Owner 1111 S TIMBERLANE DR Taxpayer 1111 S TIMBERLANE DR Address VERADALE, WA 99037- Address VERADALE, WA 99037 - Market Values 2003 Acreage Land 25,000 Exempt 0 Land Sq Feet 45,000 Impvmts Value 107,700 Personal 0 Property Class Code 11 Single Unit Total Value 132,700 Property Exemption Year Active Exemptions fl Fact Sheet for Property Number 45243.0401 Data As of 3/22/2003 Site Addles Page 1 of 1 1111 S TIMB DR TCA 0144 Parcel Statu Active Reports Report Date Wednesday, August 27. 2003 •a