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2003, 08-26 Regular Meeting MinutesROLL CALL: City Clerk Bainbridge called roll. 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: Councilmembers: 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 Kersten, 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. 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 #5 will be removed and brought back at a later date; that we are adding item #7a Dangerous Dog Review Process; and 11a 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, BOARD, 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 08 -26 -03 Page 1 of 7 Date Approved by Council: 09 -09 -03 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 "I 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: 09 -09 -03 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, Councilmember 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 $900,000 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 time 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, 1310 N. Pierce, Spokane Valley: voiced his concern about the figures being presented in relation to Mirabeau and that the $400,000 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 be able to present a full range of options and the accompanying impacts. Mayor DeVleming invited public comment. Annette Remchard, 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. Council Minutes 08 -26 -03 Page 3 of 7 Date Approved by Council: 09 -09 -03 Mayor DeVleming invited other public comment; none being offered, Mayor DeVleming closed the public hearing at 6:57 p.m. ADDITIONAL 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. OLD 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 -078, 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: 09 -09 -03 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. 03 079 Budget Amendment Ordinance Removed from the agenda. 6. Ordinance No. 03 -080 Authorizing Interlocal Agreement with Public Facilities District — First Reading. City Clerk Bainbridge read the ordinance by title. It was moved by Councilmember Denenny and seconded by Councilmember 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 are 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 we 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 Road, 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 East Lenora Drive: said the bond meetings were done in secret in apparent violation of open meetings 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 Page 5 of 7 Date Approved by Council: 09 -09 -03 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 Lazanis, 10626 E. 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 interlocal 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 DeVleming 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 $300,000; and when that occurs, if the concessions are reduced as requested, it will have more significant impact on the amount of funds coming 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 Approved by Council: 09 -09 -03 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 DeVleming and seconded by Councilmember 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. It was moved by Mayor DeVleming and seconded by Councilmember 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 Schimmels and seconded to delegate the City C'ouncil's authority to Spokane County Board of Commissioners to conduct that dangerous dog hearing in this instance, regarding the Betty Seymor owner and Susan Van Wyk. After hearing a brief report from Attorney Driskell regarding this case, Mayor DeVleming asked for the vote. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. City 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. 11 a. 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. ristine : ainbrid:e, ity Clerk Council Minutes 08 -26 -03 Date Approved by Council: 09 -09 -03 Michael DeVleming, Mayor Page 7 of 7 PRINTED NAME SIG ' ADDRESS PHONE # „..----;---- _ I 17 Cf•a."-SSIr' 1 M /fry j e-r F; , ? 7SS6 1 3 )7CI? WerSon ir a)oLLS_ avyle■i i 1 Vl c ,_-. 1 (3t) A d o t 1 r , / 'AL /C. i 7) 1 , 4 e g -c4 1 1 r C t___ A-RA) A 621._ afi 72; /4 / . ? 1 , 3 1 ' ' -- 9 ,-- i;' - o(-)), -.0/--X , . / 1 /-;"-y / q Z--,/, <!,,, , f , 7 2 --- _e___a,„ PLEASE PRINT CLEARLY 1 Spcmorkane jUalley SIGN -IN SHEET TOPIC: Hotel/Motel Tax 6 S ) --26, -43 PLEASE PRINT CLEARLY � Valley SIGN -IN SHEET TOPIC: Hotel/Motel Tax PRINTED NAME tai f4(6 /A-'S SIGNED NAME jRc ADDRESS (2L /21Lssio PHONE 3 2 4 '7 222(4!) PUBLIC HEARING SIGN -IN SHEET SPOKANE VALLEY CITY COUNCIL MEETING DATE SUBJECT ALL PERSONS WISHING TO SPEAK AT THE PUBLIC HEARING MUST SIGN IN WITH YOUR NAME AND ADDRESS FOR THE RECORD. THERE MAY BE A TIME LIMIT FOR YOUR COMMENTS. A COPY OF ANY WRITTEN COMMENTS RELATING TO THE PUBLIC HEARING SUBJECT MUST BE PROVIDED TO THE CITY CLERK NAME ADDRESS PLEASE PRINT (-)11 imtv,e (t !1 So f M,%l t, Of quu kg � 7) - f � TELEPHONE ?2-la --o try3 ,r MOTION TO DELEGATE AUTHORITY TO CONDUCT DANGEROUS DOG HEARING TO THE BOARD OF COMMISSIONERS FOR SPOKANE COUNTY Ordinance 56, in which the City Council adopted Spokane County's animal control ordinances by reference, 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. 1111 'ftirizinT71 move to..dclegate -thL City Council's authority to the Spokane County Board of Commissioners to conduct the dangerous dog hearing regarding a dog owned by Betty Seymor, 2802 North Joel, Spokane Valley, specifically relating to the incident date of . July 14, 2003, involving Susan Van Wyk. Applicant Request Range Proposed Grant Committee Recommendation $200,000 available Convention and Visitors Bureau $150,000- 200,000 $63,200 Valley Fest Spokane Wine Association $15,000- 19,724 $2535 -? 5,600 o.00 YMCA Skate Park $25,000- 50,000 18,000 Valley Soccer Concession stand $96,642 -? 24,800 Fair & Expo marketing $20,000 -? 17,500 Regional Sports Commission $100,000- 120,000 52,200 Arts Commission study $10,000 -? 0 Valley Legacy Foundation - museum $27,000- 40,000 8,700 Tourism Guide AD 10,000 Sport Horse Breeders $1980 -100 Sports USA facility $103,000 -? $230,000 -? legal issue Splash Down expansion Spokane Vacations.com $28,000- 39,000 legal issue Centennial Trail $12,480- 23,480 Spokane Polo Club $25,300 -100 Spokane Symphony Armed Forces Aerospace Museum $20,000 - 10,000 $3327.20- 2530.51 Latah Creek sign $20,000 -? legal issue Senior Wellness Conference $12,500 -6250 _ 1 NAM=E PRESENT /ABSENT 'COMMENTS Mayor Michael DeVleming- Position No. 3 Deputy Mayor Diana Wilhite - Position No. 1 Councilmen, ber Dick .I)enenny- Position No. 7 t� Councilmember Mike Flanigan- Position No. 6 / e/ • Councilmember Rich Munson- Position No. 5 Councilmember Gary Schimmels- Position No. 4 . :/ Councilmember Steve Taylor- Position No. 2 0 CITY OF SPOKANE VALLEY COUNCIL MEETING DATE COUNCIL ROLL CALL OCR, 91,63 is A G a GOVERNMENTAL AFFAIRSIDEVELOPMENTS FROM WASHINGTON One Step at a Time THE U.S. TRAVEL AND TOURISM PROMOTION ADVISORY BOARD WILL GENERATE BIG RESULTS BY JOHN P. CONNORS espite being one of the nation's largest employers and tax- payers, the travel and tourism industry has often been overlooked when the federal gov- ernment has sought ways to boost the econ- omy. Fortunately, that is changing, as Con- gress recently appropri- ated $50 million to pro- mote travel and tourism to the United States. A signifi- cant provision of the appropria- tion is the creation of a "Travel and Tourism Promotion Advi- sory Board" to make recommen- dations to the Secretary of Com- merce on how this money can be spent most effectively. As the Washington voice of the $104 billion lodging industry and its two million employees, AH&LA is working closely with long -time allies at the Depart- ment of Commerce to ensure that our industry is well repre- sented on the Travel and Tour- ism Advisory Board. No official date has been set for. the ap- pointment of the board, but the secretary has made the board a priority and has called for its assembly as soon as possible. After a successful lobbying effort by AH&LA's governmental affairs department, congressional appropriators, led by Sen. Ted Stevens (R- Alaska), agreed to provide $50 million to promote travel to the United States in the recently passed Omnibus Appropriations Bill (H.J.Res. 2). While it is never easy to secure, funding for such pro- grams, the extraordinary circumstances surrounding this year's ap- propriations process points to the effective work of the industry in educating Congress on the merits of travel and tourism promotion. Since last autumn, the federal government has been operating on a series of continuing resolutions, which provide funding for govern- ment operations when the current year's appropriations bills have not been passed —a process normally completed by October 1, the start of the federal fiscal year. In these circumstances, Congress almost always seeks to simplify the process by avoiding any new spending. Fortunately, in this instance, Congress made an exception. Additionally, standard federal budget rules require that appropriated funds be spent before the end of the current federal fiscal year. in the ease of the travel and tourism promotion funds, however, Congress accepted AH&LA's urging for flexibility due to the uncertainty of international affairs and agreed to waive this requirement. AH&LA will work closely with the Department. of Commerce to show that this investment is maximized on a national level, similar to the experiences of the For example: after spending $10 million in travel and tourism promotion advertising, Hawaii saw a $1.1 billion increase in visitor spending and a $78 million increase in tax revenues; in Maine, 8962 000 in tourism advertising generated $224.5 million in tourism spending and $18.8 naion instate taxes; Ohio found that each $1 spent on travel promotion generated $20 in tax revenues; Virginia received a return on investment of $4 in tax money for every $1 spen�romo tourism in the state; and a 81.7 million North Carolina international market' ng campaign in central Europe resulted in $55 million in spending by European visitors. AH&LA is committed to ensuring that this federal appropriation is spent efficiently and effectively, and will report on the progress of these efforts to the advisory board and AH &LA members. ■ John P. Connors is Alf &LA's executive vice president for pu&iii i >�Ifcy. JUNE 2003 LODGING M GAZRtE /21" X3,4 City of Spokane Valley 11707 E Sprague Ave Spokane Valley WA 99206 Memo MJ/pc Date 8/08/03 To Dave Mercier City Manager From Mike Jackson Parks and Recreation Director RE Splashdown Lease I would be happy to discuss this further at your convenience COPY ot Attached please find a request from Ms Debbie Weisen for a 20 year lease on Splash Down, including some additional property in Valley Mission Park. Also attached is a Spokane County Resolution and Water Slide Agreement (April 17 2001) between the County and Splash -Down Concessions Inc The current owners of Splash Down Concessions Inc are Bill and Ruth Bleasner The Weisens are the current managers of Splash Down and are interested m purchasing Splash Down Concessions, Inc from Mr and Mrs Bleasner As per her letter, Ms Weisen is asking for a quick decision on her request for a 20 year lease She has indicated that her purchase of Splash-Down Concessions is contingent on the lease agreement with the City of Spokane Valley Ms Weisen has also indicated that a 20 year lease is a requirement of the bank she has approached for financing of her planned expansion. Ms Weisen would like to begin construction m September 2003 There are a variety of issues to consider regarding Splash Down, including the assignment of the lease the long -range aquatic needs of the entire community, the additional park land requested by Ms Weisen, and others Ideally the latter two issues would be addressed as a component of a Parks and Recreation Master Plan/Aquatics Plan. However due to the /united timeframe, I am forwarding this infomnation for your review Attachments Splash Down Letter to Mile Jackson Resolution/Agreement between Spokane County and Splash Down (9-e6--43 July 17 2003 Mice Jackson City of Spokane Valley 11707 E Sprague Avenue Spokane Valley WA 99206 Dear Mike Mike -thank-you-for-meeting us -As -bere is a synopsis of our plans and dreams for Splash -Down, as well as some history and current analysis -Splash-Down y Waterpat k's over-all-projechs expand its facilities to include a fainily tube Mk two newlnnt tubs, a zero entry lazy river float, fountain, and - snack .ck. fimdrng we are requestmg into expand our young families area. We are plannmgtbe construction ofa pump-house-for witItionaLkid slides a catch pool, and a nislie patio'for families to congregate eat KZ sunbathe We need to expand the young - families area to accommodate our fast growing y tourist population and day care group use The construction will divetsy our parr and create a larger tourist attraction for out-of town families Our plan is contingent upon approval by the new city to allow us to take over the presentt+enms court, basketb 11 court and possibly the public pool. The area nuts present condition has an unused, dilapidated look and is not at all appealing to visitors or the public The tennis courts go largely unused and although the - basketball court sees some use it canbe easily relocated to another area within the park. We have attached an estimate for this expansion project The visiblhty plash -Down 1amilyWaterpar and Valley Mission Park offer the opportunity totecomeilie central attraction ofthe qty of Spokane Valley Families as well as teens and senior adults enjoy Sp Down s affordable entertainment We employ top -no c� youth who present great role-models for young children and their peers "The works extremely hard to'bud'd a rapport with guests and maintam a safe - sliding environment to ensure return visits This summer weave enjoyed endless compliments on the park s appearance lifeguards and quay staff We are working to - bad a posifive reputation not only for Splash - Down, buralso - for the - Gity of Spoikaae Va11erWith the park s present size we cannot compete d Waters intDA or i verwood,, bn have been told by many that they come to Splash Down because it has such a friendly and professional atmosphere and all pn or 1e tea resit of that Bard woflk, - our gate receipts are up and we are alreadyboolang groups forthe1004 season, inein-t3ing two large conventions from out- of town. Consequently we we hoping to itj$ the contract with the city for a 20 year lease which will enable is to get fhefillisAing we will need for the expansion project We are also requesting the following cjianges be made to the existing lease As you look e �1 FAMILY WATERPARK SPOKANE VALLEY WA SH NOTc -over theattachedaritract,-yoawi see-that-Splash-Down pays the city 10% of the gross revenue exchidmg- concesswns -np-to- $300 of gross revenue exclusive of concessions, in excess of $36& -- - 15Verofthe gross concession receipts and -after five years-that goes to 20 %-on-concessions -- We - would like to suggest that we pay 40% of gross receipts includ ng-conc d 5% of total gross receipts after 1300-000 00 —enable—us—iv—proceed—wit/row—expansion plans while keeping the -gate-pnce reasonable for guests—By/amiantus we hope to keep this a family —park That is visited weekly instead- of-once- ortwicra summer I have also attached a current menu so you can see our currentynces These pnces include tax. Scope of Work. We are lumted in-oinr-serviceto- yomigfamlies size of our mmi -slide and common -seating 408 holdmg 3WdbUll jbZ3 and 1}tnadreds of others visiting daily require additional-patio-seating. Therefore--we - desire - to build an additional kid s water park area, lazy nver and adequate seating with shaded areas The c -Down y- ecause it is a family park where clildren are safe and crowds are m erate The pommumity wants an affordable place m their own back yard to be proud of and to show off to visiting family and friends This project will break ground rotate Septemlier and be completed by April 2004 Being a seasonal we desire to remain small enough we can open on days when the temperature is moderate WhEe growing as demand warrants to adequately meet the needs of guests Other wateiparks m the area are pro from opening because of size member of employees and weather. We pay close attention to this and listen to guests Therefore we are able to open to the public except for hghtmng and thunder Community Economic Impact This project will help draw mu3ies to The ty oTSpo are Valley With the expansion ofSplasl Down, the park will become an even greater attraction for vacationers visitors and business conventions Cooperation wfhloc nil motels providing overnight package mcentives has already increased our gate receipts 'Many visitors have extended their stay mil ie city so they can come to Splash Down for the day We have become more aggressive m our advertising and are seemg dividends from those efforts lire are currently boo is for the entire community including the greater Spokane area Schools 1rom de Colbert, Ritzville and even Moses Lake have scheduled events and oyenught camp trips this summer =With the expansion project, a very - modest 10% in gate receipts would add tnether $ r-00 ©to The-etty s income AA Drojectionsloicate a possible mcrease of 25% or more (3) 1 Splash Down Family Waterpark is open each summer from Memonal Weekend through Labor Day weekend. - $2 - 00 - off coupons from six different sources mcluding AAA, Coupon Clipper 24 Hour Fitness We also provide reduced rates for mlitary personnel and famlies This yearOutback teak House has become our caterer Our newly developed website has helped m new business from outside the community We are beginnmgto see daily rngwnes from outside the area for family reunions conventions and business meetings with catered meals As far our-own community goes the YMCA, YWCA, Local Day Cares and Church groups use Splash Down weekly N Camps utilize the park each summer and loc aFbusinesses keep calendarbooked solid with employee appreciation events Local schools utihze Splash -Down heavily through June Our personal commitment to expandthe-adult-slides by adding a two-person tube nde on the west end of the-park will cost approximately 000 The mini park and lazy nver - and tube Splash Down - an extremely viable enterprise and will proportionately increase the revenue-Splash Down brings to the City of Spokane Valley We beheve these enhancements present a very desirable tourist and community attraction. Over the past 21 years Splash -Down 'has paid over$650,000 to Spokane County Now our own city will begin receiving these payments Our dream of making Valley Mission Park andSplash Down the central hub of the valley will bung pnde to all and fnanclal rewards as well. In addition to the increase in lease revenue for the city we presently employ 25 teenagers and expect to increase that number to over 35 - Mile finks again for meeting with us and hearing our dreams We believe with interest rates our enthusiasm, the rapport we havebmlt tlus summer and the support of the city the time is perfect to make this move We look forward to hearing from you soon about al; opportunity to present our plan. Sincerely Debbie Weisen Manager Attachments zek...;„ Site Location Valley Mission Park • (509) 927 -3330 fu1 1 I N C O R P O R A T E D SPLASHDOWN KIDDIE PARK PROPOSAL Plans & Engineersng $ 50 000 Permits 7 000 Demolition/Excavation 70,000 Mech. Room Addition 35,000 Lazy River 224 000 Landscape & Imgation 20,400 Wading Pool 110,000 Rock Wall 8 428 Rockery at Raised Pools 8,278 Wadmg Pool Features 19 200 Cold & Hot Tubs 60 000 Bridges 22,000 Sidewalks 31 500 Pool Apron 48 000 Electrical 20,000 733 806 Fencing Approx 701n ft 11,000 744 806 Overhead & Profit c@r 6% 44688 789 494 Sales Tax 63,949 01 TOTAL PROPOSAL $ 853,443 01 ( 5) 4810 S MORROW PARK RD SPOKANE WA 99206 (509) 928 6227 • FAX 928 S723 i i so $ re Warne SOFT DRINKS $125 ICE WATER $ 75 MILK $100 COFFEE $ 75 HOT CHOCOLATE $ 1.25 MILK SHAKE $2.25 ROOTBEER FLOATS $ 2 00 CANDY $1 25 ICE CREAM SANDWICH $1 25 ICE CREAM CONE $1.25 ASST SUNDAES $150 POPCORN $1 25 ASST CHIP'S t $100 COOKIE 4 $100 PRETZEL - $150 REGULAR FRENCH FRIES $1 50 JO JO FRENCH FRIES $175 NACHOS $2 00 CORN DOG ~ $1.50 HOT DOG $150 GERMAN DOG $175 PIZZA $ 2 00 GRILLED CHEESE SANDWICH $1 50 CHICKEN TENDERS $ Z 25 CHICKEN BURGER SINGLE $ 2 50 + CHEESE 25 HAMBURGER SINGLE $2 25 DOUBLE $2 75 CHEESEBURGER SINGLE $2 DOUBLE $3 25 1 NO 1 0313 BEFORE IBE BOARD OF COUNTY COMMISSIONERS IN THE OF EXECUTING AN AGREEMENT BEIWEEN SPOKANE COUNTY AND SPLASH-DOWN CONCESSIONS, INC REGARDING LEASING A PORIION OF VALLEY MISSION PARK FOR. AWATERS 1DE AND OTHERMATIERS RELATED THERETO OF SPOKANE COUNTY WASHINGTON *1) RESOLUTION 1 WEEEREAS pursuant to the provisions ofRCW 36 32 120(6) the Board of County Comrnits- sioners of Spokane County has the care -of County property and the management of County funds and busmess, and WHEREAS pursuIt to the provisions of Spokane County Code Section 1 56 140 et seq the Board of County Cammissoners may lease county- owned property. and WHEREAS, Spokane County is the owner of Valley Mission Park located at 11423 East Mission, Spokane, Wa: nton, and WKERL4S, a certam. portion of Valley Mission Park was declared surplus to the present and foreseeable need of Spokane County by the Board of County Commissioners of Spokane County pursuant to Resolut onNo 82-0350 and WHEREAS, pursuant to Resolution No 82 -0494, the Board of County Commissioners authonzed the execution of a Water Slide Agreement with Splash -Down Concessions, Inc pursuant to which Splash -Down Cons leased a portion of Valley Mission Park for a penod of ten (10) years to construct and.operate a water slide and WHEREAS, , pursuant to Resolution No 92 -1018 the Board of County Commissioners authonzed execution on of another Water Shde Agreement with Splash -Down Concessions Inc pursuant to which Splash-Down Concessions leased a portion of Valley Mission Park for a subsequent term of ten (10) years to operate a water slide, such lease temimating on July 25 2002 Said Agreement, in Section.No 29 provides that the same maybe modified with the same formalities as the aaitial Agreement and WHEREAS, the Parties desire to modify that Agreement dated July 21, 1992 and executed under Resolution No 92-1018 by executmg a new restated Water Shde Agreement which includes certain modified terms,d'mg anions others a new term and fee(s) 1 0313 NOW, 'THEREFORE, BE IT HEREBY RESOLVED by the Board of County Commissioners of Spokane County that either the C auman of the Board, or a majonty of the Board, be and is hereby authonzed to execute that dock entitled "WATER SLIDE A " pursuant to which, under certain terms and conditions, the Board of County Commissioners will lease to Splash Down Concessions, Inc approximately 2 56 acres located at the Valley Mission Park to be used for the purpose of operating a watershde The lease has an mrtral team of five (5) years and is renewable for a second five -year term. LESSEE shall pay a flee of 10% of the gross revenues, exclusive of concessions, up to $300,000 00 and 5% of gross revenues, exclusive of cyoricesstons, in excess of $300 000 00 for both the initial tern and renewal team. Additionally the LESSEE shall pay the COUNTY for the first five year tern, 1S% of the gross concession receipts and for the renewal term 20% ofthe gross concession receipts PASSED AND ADOPTED this /7W day of +n / , 2001 ,) % 't A 0 c` Ant Ja ATTEST VICKY M. DALTON CLERK OF TEE BOARD Danlela Enckson, Deputy (usatutton twatetstede 2001 jpe) BOARD OF COUNTY COMMISSIONERS ,r OF SPOKANE COUNTY, WASHINGTON I , C S) WHEREAS pursuant to the provision of the RCW 36 32 120(6) the Board of County Comrnmsioners of Spokane County has the care of County property and the management of County funds andbusiness and Return to 1 a31•.3 WATER SLIDE AGENT THIS AGREEMENT made and entered into this Mill day of 4on / , 2001 by and between Spokane County a political subdivision of the State of Washington having offices for the transaction of business at 1116 West Broadway Avenue Spokane Washington 99260 hereinafter referred to as the COUNTY ° and Splash Down Concessions, Inc. having offices for the transaction of business at 12727 East Piper Road, Spokane Washington 99207 hereinafter referred to as the LESSEE "jointly heremafter referred to along with the COUNTY as the PARTIES WHEREAS pursuant to the provisions of RCW 36 68 010 a county may lease or sell any park property, buildings or facilities surplus to its needs or no longer suitable for park purposes and WHEREAS pursuant to the provisions of Spokane County Code Section 1 56 140 et seq the Board of County Coroners may lease county owned property- and WHEREAS Spokane County is the owner of Valley Mission Park, located at 11423 East Mission, Spokane, Washington, and WHEREAS a certam portion of Valley Mission Park was declared surplus to the present and foreseeable need of Spokane County by the Board of County Commissioners of Spokane County pursuant to Resolution No 82 -0350 and WHEREAS pursuant to Resolution No 82 -0494 the Board of County Commissioners authorized execution of a Water Slide Agreement with Splash Down Concessions, Inc pursuant to which Splash Down Concessions leased a portion of Valley Mission Park for a penod of ten (10) years to construct and operate a water shde and Page 1 of 14 WITNESSETH VVBEREAS pursuant to Resolution No 92 -1018, the Board of County Commissioners authorized execution of another Water Slide Agreement with Splash Down Concessions Inc pursuant to which Splash Down Concessions leased a portion of Valley Mission Park for a subsequent term of ten (10) years to operate a water slide such lease terimmatmg on July 25 2002 Said Agreement in Section No 29 provides that the same may be modified with the same formahtes as the mitial Agreement, and WHEREAS the Parties desire to modify that agreement dated July 21 1992 and executed under Resolution No 92 1018 by executmg a new restated Water Slide Agreement which Includes certain modified terms, mcluding among others a new term and fee(s) NOW THEREFORE for and in consideration of the mutual promises set forth herem the PARTIES hereto do mutually agree as follows SECTION NO 1 SUBJECT AND PURPOSE The COUNTY leases to LESSEE subject to the terms and conditions -herem contained, certain real property m Valley Mission Park Located at 11423 East Mission, Spokane Washington, and more particularly described as follows That portion of Blocks 72 75 76 lymg South of State Highway and Blocks 78 79 81 and 82 all in Pmecroft First Addition according to plat hereof recorded m Book M' of Plats Page 35 Spokane County Washington. Together with that portion of vacated Johnson St adjoining said Blocks Except the West 110 feet of said Blocks 72, 75, 78 and 81 also except the East 346 7 feet of said Blocks 76 79 and 82, also except that portion of said Block 82 and vacated Johnson St mcluded within the existmg tennis courts contammg 2 56 acres more or less hereinafter referred to as the "Premises" for the purpose of constructing and operating only a water slide or slides and related landscaping uses The COUNTY shall provide LESSEE all necessary easements reasonably required by LESSEE to access the Premises SECTION NO 2 TERM The unttal terra of this Agreement shall be for five (5) years commencmg on July 26 2002 and terminating on July 25 2007 This Agreement, at the option of the LESSEE may be renewed for an additional five (5) year time frame commencing on July 26 2007 and terimnatmg on July 25 2012 Provided, however the renewals shall be subject to all provisions set forth herein. LESSEE shall mdicate its mtent to renew this Agreement by giving the COUNTY six (6) months written notice prior to the end of the nutial term. Page 2 of 14 ( /0 ) SECTION NO 3 CONSTRUCTION OF SLIDE LESSEE at its sole expense, shall construct, operate and anaintam upon the Premises a water slide or shdes together with appropriate fencing, support structures landscapmg splash pool, and all related facilities and equipment. No change or modification of the plans and specifications submitted by LESSEE to the COUNTY and incorporated herein by reference shall be made unless first approved by the COUNTY If at any tune during the life of this Agreement the LESSEE fails to use the Premises for the purpose of construction and operation of a water slide or slides without first obtammg permission m writing from the COUNTY this Agreement may at the COUNTY'S option be teraunated. If the LESSEE desires to add additional flumes apparatus or other recreational items or facilities other than those onginally proposed, LESSEE shall first obtain permission from the COUNTY SECTION NO 4 OPERATION OF SLIDE During the term of this Agreement the LESSEE shall inmate contract for and obtain in its own name and fully and promptlypay for all water gas sewer (except as set forth in Section No 14) se ed to heat lights power, telephone service and all other public utilities of every land furnished the Premises throughout the term hereof and all other costs and expenses of every kind whatsoever of or in connection with the use operation and mamtenance of the Premises and all activities conducted thereon and the COUNTY shall have no responsibility of any kind whatsoever for any thereof. LESSEE shall operate the .slide for public use during such months and hours as it deems proper provided, however that hours of operation shall comply with either all provisions as set forth m Section No 32 (LAND USE ACTION) of this Agreement, such hours of operation which may be imposed in conjunction with any subsequent land use action, if any or Spokane County Code Section 6 14 060 which ever is most restrictive No advertising shall be uiscribed, painted, armed, or displayed on the Prermses without the pnor approval of the COUNTY The purpose of this provision being to ensure that the LESSEE does not utilize or display advertising that may be offensive to the COUNTY or the citizens thereof. LESSEE shall not discriminate against any employee or applicant for employment, or patron on the grounds of race, color sex, national origin, creed, marital status age or presence of any sensory mental or physical handicap or the use of a framed guide dog or service dog by a disabled person. SECTION NO 5 FEE The LESSEE shall pay to the COUNTY for the imttal and renewal terms of this Agreement a fee of Ten percent (10 %) of gross revenue up to $300 000 and five (5) Five percent of gross revenue in excess of $300 000 For the purpose of this section the terminology gross revenue shall uiclude all revenue derived from operation of the slide or shdes shelter rental and any other recreational apparatus on the Premises It shall not include revenue derived from concessions that are separate addressed in Section No 12 The percentage fees shall be paid within ten (10) days after the end of each calendar month during which there are gross receipts from the operation of the slide or slides other recreational apparatus, or food concessions Page 3 of 14 Within sixty (60) days after the close of its slide operating season, LESSEE shall deliver to the COUNTY a statement of its gross receipts including supporting documentation, from LESSEE S operations on the Premises, setting out monthly gross receipt figures and percentage fee computations for the entire operating season. Additionally at the request of the COUNTY the LESSEE shall provide a Financial Statement Audit prepared by a qualified CPA on each years operations SECTION NO 6 INSURANCE During the penod of this Agreement LESSEE shall carry and keep m force, at its sole expense, a commercial general liability insurance policy with minimum Inauts of 51000 000 per occurrence with a $3 000 000 aggregate for bodily mjury and $1 000 000 per occurrence for property damage Said policy shall be written by a reliable insurance company or companies and shall provide that said policy shall not be canceled, materially changed or not renewed without 30 days prior notice thereof to the COUNTY The COUNTY reserves the ngbt to approve the LESSEE S insurance camer(s) The COUNTY shall be named as an additional named insured in all such policies and the LESSEE shall provide the COUNTY with certified copies of said coverage pnor to commencement of operation of the water slide On January Ist of each year that this Agreement is effect, the COUNTY agrees to contact the COUNTY S msu anee broker and obtain an actuarial review of water slide coverage and claims As a result of such actuarial review the PARTIES may mutually agree to modify the commercial general liability insurance policy provisions provided for herein. The LESSEE shall provide all fire insurance on the Premises and personal property that LESSEE moves onto the Premises and any casualty insurance desired by LESSEE both at the sole expense of LESSEE and the COUNTY should have no responsibility whatsoever therefore SECTION NO ? INDEMNIFICATION The COUNTY shall not be liable for any loss, injury death, or damage to persons or property which at any time may be suffered or sustained by LESSEE or by any person whosoever may at any time be using or occupying or visiting the Premises or be m on or about the same whether such loss injury death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of the LESSEE or of any occupant, sub - tenant, visitor user or patron of any portion of the Premises or shall result from or be caused by any other matter or thing whether of the same land as or of a dtffierent kind that the matters or things set forth above and LESSEE shall indemnify the COUNTY against all claims liability loss or damage whatsoever on account of any such loss uijury death or damage LESSEE hereby waives an claims against the COUNTY for damages to the buildings and improvements that are now on or hereafter placed or built on the Premises and to the property of LESSEE m, or about the Premises and for injury to persons or property in or about the Premises from any cause ansing at any time during the tern hereof, the giving of this waiver being one of the conditions upon which this Agreement is executed by the COUNTY Page 4oP14 SECTION NO 8 SLIDE OWNERSHIP It is understood that the water shde is a proprietary product of the LESSEE The COUNTY obtains no interest therein as a part of this Agreement and may not use any of its ideas concepts structures or components without the express consent of LESSEE except as provided hereinafter SECTION NO 9 OWNERSHIP OF IMPROVEMENTS All improvements and equipment placed on the Premises by LESSEE shall be and remain the property of LESSEE and the COUNTY shall have no interest therein except as provided hereinafter SECTION NO 10 TERMINATION In addition to all other nghts and remedies which the PARTIES may have herein or at law the PARTIES may terminate this Agreement as follows By LESSEE This Agreement may be termmated by the LESSEE upon 30 days written notice to the COUNTY upon the happening of any one of the following events 1 The default of Spokane County m the performance of any terms conditions or covenants herein required to be performed by the COUN'T'Y and the failure of the COUNTY to remedy such default withm a penod of 30 days after the receipt from the LESSEE-of written notice to remedy the same provided, however that no notice of termmation as herein provided shall be of any force or effect if the COUNTY shall have remedied the default pnor to the expiration of such 30-day penod, or if the nature of such default is such that a penod in excess of 30 days is necessary in order for the COUNTY to cure the default and shall diligently continue its efforts to correct such default In such event, the COUNTY shall have such time as is reasonably required to cure the default 2 The failure to derive gross receipts from operation of the water shde of at least S125 000 m any operating season By COUNTY This Agreement may be terminated by Spokane County upon 30 days written notice to the LESSEE upon the happening of any one of the following areas 1 The failure of the LESSEE to make any payments of money as required hereunder after receivmg ten days written notice of its failure to pay such money 2. The failure of LESSEE to derive gross receipts from operation of the water shde at least S125 000 in operating season or a munmum payment of $13 000 Page 5 of 14 13) 3 Abandonment of the Premises by the LESSEE and/or the continuance of unauthorized variance of conduct and operation of the busmess required hereunder for a penod of five consecutive days Provided, however that the COUNTY understands and agrees that LESSEE S operation, is seasonal and closing the Premises for the season or mterruptions m the operation of the water shde due to weather conditions or repairs shall not constitute an abandonment of the Premises 4 The default of LESSEE in the performance of any teens conditions or covenants herein required to be performed by the LESSEE and the failure of the LESSEE to remedy such default in a period of 30 days after receipt of written notice to remedy the same Provided, however that no notice of termination as herein provided shall be of any force or effect if LESSEE shall have remedied the default to the sole satisfaction of the COUNTY poor to the expiration of such 30 days period, or if the nature of such default is such that a penod m excess of 30 days is necessary in order for LESSEE to cure such default, and LESSEE shall have commenced to cure the default and shall diligently continue its efforts to correct such default. In such event, LESSEE shall have sucb time as is reasonably required to cure the default In the event of terrnznation of the lease as provided herem the PARTIES shall have their remedies according to law and m addition shall have the following remedies By LESSEE In the event of termmab n by LESSEE, and except as provided herem LESSEE shall have the right to remove the water slide, removable supporting structures buildings and other improvements placed upon the Premises by LESSEE at any time within 120 days after such termination LESSEE shall restore the Prer mses to its onginal condition during the same time frame allowed for removal of the structure By COUNTY In the event of termination by Spokane County as provided herem or at the end of the tern of this Agreement the COUNTY shall have the right for a period of 90 days after termniation to purchase the water slide support structures, buildings and other improvements from the LESSEE at a price to be mutually agreed upon. In the event the COQ shall not exercise its right to purchase the water shde support structures, buildings and other improvements within the 90 days period, the LESSEE shall remove the same within 120 days after the expiration of such period and restore the Premises to its original condition during the same time frame In the event of a termrmation for any reason provided for herein, and the LESSEE does not remove the water slide, supporting structures buildings and other unprovements placed upon the Premises by the LESSEE within the time frames set forth herein, the COUNTY may at its option, (1) on the payment of one dollar ($1 00) take title to said property or (2) dismantle remove and store such property at a location convenient to the COUNTY and charge to the LESSEE a fee for dismantling removing, transporting and storing said property Page 6of14 SECTION NO 11 SWIMMING POOL/VALLEY MISSION PARK RECREATIONAL FACILTrIES It is understood by the PARTIES that the COUNTY'S decision(s) softball field Valley Mission Park tayground gazebo recreation facility mcludmg but not be limited to the tennis CO� or closed shall not have any bearing arena, stables basketball court, rest rooms or Swunznxntg all terms conditions and convents set forth open whatsoever with the LESSEE S obligation to carry herein. SECTION NO 12 CONCESSIONS e LESSEE will be granted a concession nght to sell food, soft drmks, active wear and souvenirs on the Premises The LESSEE shall pay the COUNTY for the first five Th year term of this Agreement 15% of (5) the second five (o) year term of this gross concession receipts The LESSEE shall pay the COUNTY Agreement 20% of gross concession receipts The exact scope of LESSEE S .concession sales sl all be negotiated and mutually upon The fee shall be paid as set forth m Section No of this Agreement. SECTION NO 13 WASTE AND NUISANCE PROHIBITED Agreement, LESSEE shall comply with all applicable laws affectmg the During the term of this Premises the breach of which ought result m any penalty on the COUNTY or forfeiture of the COUNTY'S title to the Premises LESSEE shall not comrmt, or suffer to be comnutted any waste on the Prexrnses or nuisance SECTION NO 14 SEWERS Valley In the event that V Mission Park or Mission Avenue becomes served by sewer the PARTIES agree to the follows g allocation of costs 1 Sewer Capital Facilities Rate LESSEE shall be responsible for paying all Sewer Capital Facilities Rate charges (Le ERU s) allocable to LESSEE S use of the Premises v All beyond (expansion of) those uses existmg December 2000 pursuant S Agreement o codes approved uses existing in December 2000 subject to sewerage per p County shall be subject to allocation of costs m accordance with the agreement in place December 2000 LESSEE will pay all construction costs mcurred to mamtam service and/or de f for in the connection of any new or increase in service due to expansion of the water shct water pursuant to this Agreement LESSEE shall at bas own expense stall an additional meter(s) to measure the flow entering the sewered portion of tlie Premises as deterixuned by Spokane County 2 Monthly Charges The LESSEE shall be required to pay those monthly charges allocable to the LESSEE S use of the Premises as set forth in this Agreement. Page 1 of 14 (I) To COUNTY Board of County Commissioners of Spokane County West 1116 Broadway Spokane, Washington 99260 Page $ of 14 C ap ) SECTION NO 15 NOTICES All notices demands, or other writings m this Agreement provided to be given or made or sent or which may be given, or made or sent by either Party hereto to the other shall be deemed to have been fully given or made or sent when made in writing and deposited in the Umted States mail, certified, postage pre paid and return receipt requested, and addressed as follows To LESSEE Splash -Down Concessions, Inc. 12727 East Piper Rd. Spokane, Wastungton 99207 The address to which any notice, demand or any other writing may be given or made or sent to any Party as above provided may be changed by written notice given by such Party as above provided SECTION NO 16 ATTORNEY S FEES If any action at law or m equity shall be brought to enforce the provisions of this lease or to enforce or interpret any of the covenants, terms or conditions of this lease or for the recovery of the possession of the Penises the prevailing ?arty shall be entitled to recover from the other party as part of the prevailing Party's cost, reasonable attorney's fees the amount of which shall be fixed by the court and shall be made a part of anyiudgment or decree rendered. SECTION NO 17 REPAIRS LESSEE shall, throughout the term of tins Agreement, at its own cost, and without any expense to the COUNTY keep and mamtam the Premises including ALL buildings and improvements of every land which may be a part thereof; and all appurtenances thereto including sidewalks adjacent good, sanitary and neat order condition and repair The COUNTY shall not be obligated to make any repairs replacements or renewals of any kind, nature or description, whatsoever to the Premises, or any buildmgs or unprovements thereon. The LESSEE shall control all rodents and other pests that may be on or in the Premises during the term of this Agreement The LESSEE shall provide trash and garbage receptacles and have refuse removed from the Prenuses on a regular basis SECTION NO iS INSOLVENCY OR BANKRUPTCY If LESSEE becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver assignee or other liquidating officer is appointed for the business of the LESSEE, then the COUNTY may terminate this Agreement. SECTION NO 19 L,ESSEE'S CONTRACTOR'S EMPLOYEES LESSEE shall conduct a background check on all employees working at the water slide or any concessions operated on the Premises LESSEE shall ensure that each employee presents a neat � clean appearance m person and in dress while on duty on the Premises The LESSEE shall u remedial action, which shall include termination in the event any of LESSEE S employees conduct themselves in an improper or mappropnate rammer while on duty SECTION NO 20 WARRANTIES OF TITLE AND QUIET ENJOYMENT The COUNTY covenants that the COUNTY is seized of the real property constructing the Prenuses m fee simply and has full right to make this Agreement and that the LESSEE shall have quiet and peaceable possession of the Premises during the term hereof SECTION NO 21 LIENS LESSEE shall keep the Premises fee and clear from all mechanics' and raaterialmens and other hens used from work or labor done, services performed, materials appliances, teams or power contributed, or furnished or to be used m or about the Premises for or in connection with any operations of LESSEE or any alteration, improvement, repairs or additions which the LESSEE may ake or Premises cause or any work or construction by for or petted by LESSEE on or about SECTION NO 22 COMPLIANCE W1T8 LEASEHOLD EXCISE TAX LESSEE hereby acknowledges that to the extent this Agreement is subject to the "leasehold excise tax as set forth by chapter 8229A RCW as now or hereinafter amended, the same shall promptly be paid by the LESSEE m addition tithe fees set forth m Section No 5 and Section No 12 of this Agreement LESSEE agrees to promptly pay when due all taxes, rates, charges and assessments special or otherwise and public charges of every land and nature which may be lawfully imposed or assessed In any way on the LESSEE with reference to the Premises The LESSEE further agrees to pay promptly when due all taxes imposed on LESSEE as a result of the services provided upon the Premises includmg but not limited to all sales business occupancy and use taxes LESSEE shall also comply with and abide by all federal, state county municipal and other governmental statues ordmaices laws and regulations affecting the Premises, the operation and maintenance water slide thereon, the improvements thereon, or any activity conducted on or in such Premises Page 9 of 14 C OUNTY = r$E�� BURGLARY OR VANDALISM SECTION NO 23 NON LIABILITY OF the LESSEE loss m�urY or damage incurred by The COUNTY shall not be liable in any manner for any � parties The �da committed by either Identified or unidentified that L oot acts of l be burglary or and all expenditures relating to any securnty precaution LESSEE shall be responsible for providing and and all im provements thereon shall be solely LESSEE deems necessary to protect the Premises relating to any safety and security precautions that the all expenditures g afe ees irons or users at the LESSEE a eor necessary ar for the safety of the personnel, guests ploy pa ler users security Premise deems IIe� measures a or property Preanses afl x hours end prevent uaauthonzed use LESSEE located on the Premises The LESSEE shall imp �a�es sufficient to secure the SECTION NO 24 INSPECTION The LESSEE shall make available to the COUNTY or its duly authorized representative at any time from or pettaient information which through Friday dig normal business hours all records and which the COUNTY may be Monday kept in con�unctnon with this the LESSEE shall have ��� part of auditing procedures or audit trails required by law to include SECTION NO 25 RELATIONSHIP OF THE PARTIES Agreement The The PARTIES interested intend that an independent cadent LESSEE relationship will be created by this fAgre services will the results to be achieved, and the conduct and control of acts and the acts eov� is ingested may and entirely responsible a g� will be solely du�8 the performance of this .4eat of he solely with the LESSEE The s lessee or other o its agents employees servants, contemplated, the LESSEE is an mcicp�� Contractor with In the performance of the services *herein of the work and provisions of the performance of the deiads the authority to control and direct the results obtained- However the services contempla of services, the COUNTY being interested only � � shall be subject to the COUNTY'S general nght m herein must 'fleet the approval of the cowry and whether the services are being performed �peetson and supervision for the purpose of accordance with the specifications set forthherem. No � this Agreement LESSEE S business is separate and or pa�ership is crew b y to act for the other in any ap agency that co ducted by the COUNTY Neither Party will have P thong be responsible for any m t e from toaccon binding on the other and neither arty matter or to create obligati ens b obligations or e xpenses whatsoever of the other Party SECTION NO 26 VENUE STIPULATION � hang been made and delivered within the State of This Agreement has been and shall be construed as that this Agreement shall be understood and agreed by each party performance A Any shall 'Governed by the it is mutually both as to interpretation and P governed by the laws of the State of Washington, of this Agreement or any provision or judicial proceeding for the enforcement reement or any in Spokane hereof law suit be equity or and stained only in any of the Courts of competent hereof shall be Institute County Washington. Page 10 of 14 C SECTION NO 27 ASSIGNMENT partners successors, executors tors and Each Party to this binds themselves their successor executors and asst to the other party of this Agreement and to the Party's with respect to all terms co�tI� and covenants set forth herein The assigns of each other Party � rcsP � its interest m this Agreement without the same LESSEE may not assign transfer m whole or m p Driers of Spokane County and the being first authotzzed by resolution of the Board of County Comnmssr g of the Board of County Commissioners of Spokane County consent ui wntang of at least two members stoners of Spode County to provide consent or denial shall A decision by the Bawd of County Commis 30 calendar days the LESSEE within a reasonable time frame not to exceed thirty (30) be co�cated to among other factors the financial of written request. The Board s demon shall be made corisi tonal facilities and ability to meet stability expeneaee in o pow n ng water slides and related In the event of an assignment the assignee shall assume all liability of the assignor Any iII,authori�e voluntary conditions within � Agreement o� or mvplimtary assignment or sub -lease shall be void and shall terminate this lease at the COUNTY S option SECT NO 2$ WAIVER bas the ower nght or authority to waive any No officer employee, agent or otherwise of the COUNTY any of this Agreement shall not of the conditions or provisions of this Agreement The afforded in this Agreement or at be held to be a waiver of any other or subsequent breach. remedies a ver of ay other remedy provided herein law shall be taken and construed as cumulative that is m addition the�provxsions of this Agreement or or by law The failure of the COUNTY to enforce at any time any of e face by the LESSEE of any of the provisions hereof shall be t or an art to require at any tune p way affect the validity of this Agrees Y P construed to be a waiver of such provtsions, enforce each and every such Provision hereof or the nght of the COUNTY to thereafter SECTION NO 29 MODIFICA'T'ION There shall be no modification of this Agreement, except in wrttug, executed with the same formalities of this present instrument SECTION NO 30 SEVERABILITY It is understood and agreed by the PAR'T'IES that if any part, term-or term-or provision of this Agreement is held by the court to be illegal, the vandity of the remammg pons or provisions shall not be affected, and tY Agreement did obligations of the PARTIES shall be construed and enforced as if this Agr the rights and � contan a particular P an, term or provision held to be invalid. visions of d appear that any per, term or provision hereof is m conflict with any statutory shall b d If it ngt app or provision hereof which may conflict therewith then the part, tarn, Pr be m conflict therewith, and shall be deemed to modify to inoperative and null and void insofar as it may conform to such statutory provisions Page ll of 14 t (1 SECTION NO 31 CONSTRUCTION Words according to singular may be applied to the plural of persons and things and words unportmg the � plural may be applied to the si "Herein used in any section of this Agreement relates to the whole Agreement and not to that section only 'Board of C o unty Commissioners used m any section of this Agreement refers to the Board of County Comrrassioners of Spokane County SECTION' NO 32 LAND USE ACTION shall comply with all provisions of the Findings and Order in the Matter of Reviewing the The LESSEE s y Adiaunustrahv+e Action of the Spokane County Zoning Adjuster Decision to Approve Conditional Use Person No CUE-5 83 Splash Down Inc dated May 16 1983 or such other land use conditions required in commotion with the use of the Premises SECTION NO 33 HEADINGS headings appearmg in this Agreement have been inserted solely for the purpose of The section he gs PP do they convenient and ready reference In no way which they purport to and shall not be deemed to define limit or extend the scope or intent of the sections to are pertamirng SECTION NO 34 TIME OF THE ESSENCE Time is of the essence of each and every provision herein. SECTION NO 35. ALL WRITING CONTD HERS ent contains a ll th terms- and conditions agreed upon by the PARTIES d o This the sub ect matter of this Agreement shall be understanduigs oral or otherwise regarding � exist or to bond any of the PARTIES Page 12 of 14 ( 20) that O states above � eement �d now to induce the ,ate o f t abo been Agreement has and understands the expressed this �eI.�S p�tesen ESS SFE has read and 44t be executed on Esc of Agreement to radon p it. We ca sed this � to enter OF the PARTIES � S V�+��RE �V'C.'� the date a b o ve . . and get forth »titi,,, OF VW 13of14 Avs � pp,1,TO VI�CY I 1/ jjcic.SO't Deputy D LAE OrrialS WIT AS�GT , ss STATE ) Public r p STA ) lgne sNota��` D of Sp ore them appeare PI�II- County 200 b e f b � l y e C o m m i s s i o n e r s of duly co d end m° °� the grate °f Vag D Oa this Ili& Washington, ROS�� to sknown;on of t to be and of w 14 t a political d the said ms n honed, f therein a nd for alp.i.cCAS of Spokane O►° a cknowle d g ed d purposes scat o free �and qty Go ° o � ton, for uses and the Sea a B of Co the end f d politica subd� said tns' that � ��d�of � � execute voluAt'e authoriz m seal the day and Yea ath stated. that they hand and aced Y on set my / said County OF I rave hem iri ���s � � � te o �Al ash��on, written. � � d for Ie Sta first a bove wti `p ? 11 1 / _ off ,P he �. a/ 'Own C residing at Spokane Ell . . mo e$ ? :$ I Y� � sionexp • PUB l (41/;14tiLs..ff '4 10.1%% COUNTY V AS GTON STATE OF WASHINGTON ) )ss County of Spokane ) On this day personally appeared before me Ah/ /,anm L Bieds ti'r to me known to be the individual(s) described in and who executed the within and foregoing instrument, and acknowledged that he/she/they signed the same as his/her /ter free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN under my hand and offic : eal this Nitiay of l 2001 ttOTAR % % °t. z Punic 111 (agreementslwater slide 2001 final 041701 ape) Page 14of14 SPLASH DOWN CONCESSIONS 1NC By Its {Title) Public in and for the State of Washmgton, residing at Spokane My commission expires 0 ' — 2Q,' (2 2)