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2015, 08-18 Study Session MINUTES SPOKANE VALLEY CITY COUNCIL REGULAR MEETING STUDY SESSION FORMAT Spokane Valley City Hall Council Chambers Spokane Valley,Washington August 18,2015 6:00 p.m. Attendance: Councilmembers Staff Dean Grafos,Mayor Mike Jackson, City Manager Arne Woodard, Deputy Mayor Mark Calhoun,Deputy City Manager Chuck Hafner, Councilmember Cary Driskell, City Attorney Rod Higgins, Councilmember Erik Lamb, Deputy City Attorney Ed Pace, Councilmember Mike Stone, Parks & Recreation Director Ben Wick, Councilmember Eric Guth,Public Works Director Bill Gothmann, Councilmember Pro Tern John Hohman, Community Dev. Director Chelsie Taylor, Interim Finance Director Jenny Nickerson, Senior Plans Examiner Christine Bainbridge, City Clerk Mayor Grafos called the meeting to order at 6:00 p.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. 1. Council Budget Goals, Capital Reserves, Fund#312—Mike Jackson City Manager Jackson explained that due to time constraints,there were a few agenda items that were not discussed during the June budget workshop, and one of those was Council goals and projects; and in anticipation of the September 8 presentation of the preliminary budget, Mr. Jackson said this would be a good opportunity to talk about the capital budget as well as possible Council goals; said no final decision is needed tonight as we can do that as we work through the budget; and that this is an opportunity to discuss goals and where Council would like us to put our resources and efforts for the 2016 budget, adding that goals are important in directing staffs attention to resources. Mr. Jackson brought Council's attention to the chart in the spreadsheet (and also as a slide) showing the Capital Reserve Fund #312, which is funded through the ending fund balance; said that 2012 was the highpoint for the ending fund balance with $28 million, or about 83% of the general fund budget that year; in 2011 Council started to re-direct some of those funds mostly for street preservation and STEP (septic tank elimination program) projects where the City decided to do full-width paving, which he said was a good decision instead of just doing a patch. Mr. Jackson said that during the year 2012, we took$2 million for pavement preservation and activated that program through the ending fund balance; we also purchased the SmartGov permitting software. As a result of among other things not fully spending everything allocated in the year, Mr. Jackson explained that our 2012 revenues were exceeding the expenditures and as a result we transferred another $1.7 million from the general fund to fund 312 this year and as we look ahead to next year, anticipate being able to transfer another $1.4 million; but said that after next year we cannot predict that ending fund balance will grow or funds will be added to it; said the system is not designed to generate additional ending fund balance, and when that happens, we have either overestimated our revenues which is not as likely, or more likely is as a result of departments not spending all the money in their budget, which he said proves that this is a budget and not a spending plan. Mr. Jackson further explained that the big change came about in 2013 when $7.8 million was transferred from the ending fund balance to the capital reserve fund, and with that Council determined to maintain the ending fund balance at 50%, thereby enabling us to use those other funds right away in the community. Council Study Session:08-18-2015 Page 1 of 6 Approved by Council:09-08-2015 He explained that in 2014, we transferred $2.8 million: $2.4 million to capital reserve, the bulk of the remainder to the Old Mission Trailhead, and some to the solid waste program to help get our own program running; and although SCRAPS later reimbursed us, at that time we also installed fiber services for SCRAPS. Mr. Jackson went over the Capital Projects spreadsheet with the listed projects, some of which for historical purposes are shown crossed off as completed. The new projects proposed as shown on the left, he explained include a City Hall contingency which he said he based on $14.4 million, which includes a combination of cash on hand that we are willing to contribute to that project, plus an amount approximate to what we are spending on the lease for our current building. Concerning the new building design, he said we started becoming a little skeptical if we could build the basic city hall; said it is a fairly basic building, but we are recommending setting aside enough money until all the decisions have been made so we have enough to cover any unforeseen costs. For the Pines Road underpass of $17.5 million, Mr. Jackson said we are setting aside $500,000 to consider the land acquisition right-of-way and are confident that amount will cover the cost. The topic of railroad quiet zones recently came back up and Mr. Jackson said we are proposing $85,000 to cover that study, which he said was the amount estimated about three years ago. Mr. Jackson also went over the fund and grant figures connected with Appleway Trail, and said we have estimated $8.2 million needed to complete the trail; said he is optimistic about completing the portion from Balfour Park to University, and should know more in a few weeks; said some budget sections have more than needed and other have less than needed, so we will work with grantors to spread the money out for the trail completion University to Pines. Going back to slide 2 "Capital Reserve Fund #312" uses, he mentioned the committed cash for city hall contingency of$360,437; an additional $1.1 million to add to the bond measure if necessary, and said he'd like to get a sense of what Council feels about these priorities and the funds committed; said we have secured grants for some projects and are optimistic with our projections adding that it doesn't leave a lot to move around and if we are not successful with the TIGER grant,that would eventually free up that$700,000. Mr. Jackson said that we are a couple weeks from bringing Council the proposed plans for City Hall; and we can talk about if there are ways to reduce the cost in the building design; said there are not a lot of frills on the building; we are trying to have the building that citizens told us they want, plus building a little additional space, which could be reduced if desired or needed; said having our own City Hall brings with it additional costs for building operation and maintenance and that is already built into the budget; and said we have set aside funds to cover the bond payments while we are still leasing our current facility. Mr. Jackson said the $360,000 contingency for construction is the cash contribution part of that $1.5 million; and said one of the things being considered is a basement, which adds to the cost of the building; he said we are just trying to make sure we have it covered if that is the desired direction to take. There was some discussion about the idea of $360,000 cash versus adding it to the bond amount with some Councilmembers preferring to use as much cash as possible. The question of REET (real estate excise tax) funds also came up, and Mr. Jackson explained that we could use REET funds, but part of what's happening is this is the last year we have civic facilities dollars for preservation; that we'll shift that load to the REET funds, but the big unknown is what road projects will come up in the future, so the idea is to set those REET funds aside and let them grow. Mr. Jackson added that we can maintain the preservation fund through about 2023; and could look harder at the REET funds if that is Council's preference. Mayor Grafos said he is looking for a number for the city hall; and instead of using the $360,000 for a city hall contingency, to perhaps put those funds to work on a couple small projects, like bus pads for the bus shelter since there is no funding for that; and to perhaps purchase about five of those pads; and said maybe we could set aside $50,000 a year to do some of those pads, and suggested working directly with STA(Spokane Transit Authority); and said if we had a source of funding, we could start to do about three to five pads a year. Councilmember Pace agreed he would like to talk about some of the smaller projects, Council Study Session:08-18-2015 Page 2 of 6 Approved by Council:09-08-2015 that bus pads are good but to perhaps include Browns Park, and suggested getting a list of possibilities so Council can determine what would be the best "bang for our buck." Mayor Grafos added that we are always getting calls for sidewalk projects. Councilmember Hafner asked why the amount of$360,000; and if we use that for smaller projects, that contingency will disappear and said he doesn't want to jeopardize that amount. Mr. Jackson explained that he is interested in how Council would like to spend that amount; said we have fixed a budget for city hall based on cash we have to allocate to the project; said we have talked about a full basement under the building, and if that is included, it adds about $1.2 or $1.3 million over the amount budgeted; said we can build a building, we just have to agree on what to include; or we could bond the entire amount but over the long term it is costly so we need to be cautious; said we know there'll be additional money in this account, and we don't want to spend next year's money now. Mr. Jackson said we have not had the discussion about including a basement. Councilmember Hafner said since this is a preliminary discussion, there might be other things that come forward, and he doesn't want to make decisions that might affect the complete city hall. Deputy Mayor Woodard expressed concern with a very loose estimate of$14.4 million which is now at $16 million with the contingency, and adding a basement adds another million, and said we are quickly getting to that $20 million that everyone thought they wanted to spend on a city hall ten years ago; said he knows this is all preliminary and a "place holder" until we get more information, but said he is not happy with the creep in the cost. Mr. Jackson said there has not been any cost creep at this point. Deputy Mayor Woodard also said he does not like financing the contingency and he asked if there were other options for the bond. Mr. Jackson replied that it might not be best to break that down into two issues; said we will have a much closer number before we approve it and that for tonight, he just wanted to tell Council what we are hearing; he said we are coming in very close to the original square footage;that he would be happy to look at bus shelters and other projects and when the budget is brought back, Council can make changes. He asked if there were any other suggestions. Councilmember Pace said we should set the budget, build to that, and aim for the lower end, not the middle or higher; and mentioned that the smaller projects could contribute to economic development. Councilmember Hafner said we all know that it is possible for bids to come in higher than anticipated so we might need to make adjustments, and said we need to look at it all; that we need a safeguard as there are too many times where things changed and there was no safeguard thereby forcing us to use money from the general fund, and said he does not want us in that position. Councilmember Higgins said he feels we are getting a little head of ourselves; that we don't have a firm target, and that this issue can be differed for a while, which he said is what Mr. Jackson is suggesting, to see what the architects bring in, and move from there. Concerning smaller projects, Councilmember Gothmann said if there is an opportunity to apply funds to those, than that's fine and if mid-year we decide not to build those projects, we don't have to put that in a budget and said the planning starts with the budget. Mr. Jackson agreed. Councilmember Wick agreed with leaving funds committed to the Barker Grade Separation project. After review of Council's 2015 goals, Mr. Jackson asked if Council had any goal ideas for 2016; said we are in August but have made great progress on those goals; said we participated in over fifteen legislative meetings, including local, state, and two trips to Washington, D.C.; that we have made some in-roads and even the discussion yesterday was an extension of those conversations, and said we have received and given more attention at the federal level, and the legislators can see we have increased our involvement and we have some degree of attention at all levels, particularly for the Barker project. Mr. Jackson said that lobbyist Ms. Briahna Taylor will be here next week to give us an update. Concerning Bridging the Valley, he said staff continues to work on a retail strategy to bring to Council. Mr. Jackson said a discussion was held yesterday for a second draft for a tourism study for Spokane Valley, which study would be a base-level study to look at current attractions and examine what is and isn't working to bring people here, to look for deficits and come up with recommendations of facilities or programs; that next week he hopes to discuss that scope of work. Mr. Jackson added that we have been working on the comp Council Study Session:08-18-2015 Page 3 of 6 Approved by Council:09-08-2015 plan and have seen some setbacks because of the population projections needed from the County,and said those projections are likely to be finalized close to the end of the year; he said community development has been working on all aspects of the comp plan while they are waiting for those population projections. Concerning the street preservation program, Mr. Jackson said the goal is to pursue the sustainability plan and we have been able to do that mostly because of the public work's grants, which enables us to maintain the current level of spending to the year 2023. He said if we wanted to, we could get a little more aggressive in spending as availability and capacity become available. Mr. Jackson also mentioned the public safety goal to evaluate and discuss costs, and he mentioned the power shift concept which has been implemented and been very successful; plus we added two police officers, and are working in connection with the CAD system, as well as the supported addition of that analysis for the Valley precinct, with sharing the cost equally between us and the sheriffs office; and that with the new more powerful system and analysis capacity we can direct resources to the police department which will create the greatest benefit; and that we continue to look for ways to measure and monitor performance. Mr. Jackson asked if Council has other goals in mind and that they should feel free to e-mail him with ideas; and at some point we will bring the topic back for further discussion, and adopt the goals with the adoption of the final budget. Councilmember Gothmann asked about corridor consolidation and said based on the meeting yesterday with BNSF (Burlington Northern Sante Fe) Railroad, he feels that is not a realistic goal. Mr. Jackson said he leaves that to the decision makers. Councilmember Wick said he feels we are talking to the wrong person on the corridor consolidation, and if we take it off our goals, no one will ever pursue it; he feels we need to talk to Johan Hellman's leadership in Fort Worth Texas. Deputy Mayor Woodard suggested probing even deeper by going go the Federal Railroad Administration; said we need to continue to work with the state and federal legislators to get them to see the wisdom in consolidating. Several Councilmembers suggested keeping that goal as a goal for the next year. Councilmember Wick asked about sewering the Barker Area as a goal, or perhaps just include it under the economic development efforts. Mr. Jackson said we can do that; that conversations continue with the feds regarding economic development; that there are some public works grants available to qualifying communities, but those communities must be economically disadvantaged, and he said we don't meet that category; but that we will continue looking for revenue sources; and said the goal can remain as it is, or broadened to include infrastructure to support economic development. Councilmember Pace suggested looking at the bigger picture of what infrastructure is needed, and adding to the legislative agenda to pursue changes that would make our area of Washington State more competitive with Idaho when it comes to attracting businesses, with such things as the B&O tax; and Councilmember Wick commented we need more tools for business recruitment. Mr. Jackson asked Council to let him know if they get additional goal ideas. 2. Local Improvement District(LID)—Erik Lamb Deputy City Attorney Lamb explained that as part of past discussions about economic development and incentive tools, Council requested more information concerning LIDs, and asked about putting together a case study as they relate to local neighborhoods, and said as a result, tonight's discussion focuses on the LID as a potential tool citizens could initiate through a petition process. Through his PowerPoint presentation,Mr. Lamb explained that LIDS are solely a financing tool, used to finance a variety of public improvements through a special assessment on those properties; he explained the benefits and purposes of LIDs, as well as the petition and appeal process. Mr. Lamb explained that the County uses an LID for development of County Roads, they consolidate them, do all the construction and take the total cost into one bond issue,which lowers the cost, adding that they have a couple engineers who handle these. There was some discussion about citizen-initiated petitions and city-initiated; that the methods of assessment are flexible and range from the traditional method with designation by square foot, or assessments based upon frontage or lot size. Mayor Grafos asked if we could identify a project and come up with a cost,then approach property owners and determine the cost, and said doing such a project could enhance economic development, and perhaps we could even put some of those projects together. Mr. Council Study Session:08-18-2015 Page 4 of 6 Approved by Council:09-08-2015 Lamb responded that the key would be approaching property owners and working with them in advance and to also determine where it would be appropriate to draw the LID area. Mayor Grafos mentioned railroad crossings or even quiet zones and Mr. Lamb said doing such a large-scale project would be a little different from sidewalks as noise issues would travel beyond the initial front line of property, but all those considered, it would lower the individual cost. When asked about how long the process generally takes, Mr. Lamb said some LID processes could take about two and one-half years, although it could move quicker depending on the nature of the improvements; but said it is a lengthy process; and said that Spokane County does this on a regular basis. Councilmember Gothmann said since we are a contract city, perhaps we could contract with the County. Mayor Grafos called for a recess at 7:25 p.m. and reconvened the meeting at 7:35 p.m. 3. Marijuana Regulations—Erik Lamb As noted in his Request for Council Action form, Deputy City Attorney Lamb went over the history and background leading up to Council's adoption of a moratorium on unlicensed marijuana uses; said we wanted to wait until the end of the 2015 legislative session before working on regulations which will ultimately be taken through the Planning Commission, including a public hearing, and then to Council for ordinance adoption consideration. Mr. Lamb said that before that process is formalized, he wanted to present Council with some proposals for regulations. Mr. Lamb explained that we will rely on our existing regulations as they are solely related to recreational and not medical marijuana; said staff recommends no changes to the zoning or buffering other than to make it clear the regulations would apply to retail shops with the medical marijuana endorsement; said staff doesn't feel there is a need to modify that as the number of retail stores with medical is not set by state law; said the amount will increase to take into consideration the medical market, but we won't know those numbers until after we adopt our regulations; adding that we want our rules in place before the state rules are effective so we can respond to people who want licenses. Mr. Lamb explained that the new state law will eliminate collective gardens but allow cooperatives, and that the only place where cooperatives are allowed is in a domicile, and that the limit is 60 plants. Mr. Lamb said we don't think 60 plants is appropriate, adding that the City of Spokane and Spokane County allow license shops so we feel there isn't a lack of access to marijuana. Senior Plans Examiner Nickerson explained that space requirements allow for 15 feet for each plant at full maturity, and said 60 plants would overwhelm the traditional garage. Mr. Lamb said staff recommends prohibiting cooperatives within city residential areas, as patients could still grow up to fifteen plants per unit; and said such growing is recommended to be done in a greenhouse, shop or other enclosed structure, and that such structure be opaque and site-screened from the right-of-way; said staff further recommends that the City require qualified patients and designated providers to work with the City to ensure receipt of proper building permits for any structures that are constructed or modifications that are made to a residence, such as electrical or ventilation modifications; said this could take the form of a license or a requirement placed in the City Code. Mr. Lamb said staff is working on the details and plans to take these issues to the Planning Commission in September, hold a public hearing, and bring the issue back to Council. There was some Council discussion about limiting the number of stores or qualified in-home grows, and Mr. Lamb said there is no specific requirement that designates we have a set amount of retail stores, but said he anticipates a rule change coming as the law requires that the Board license sufficient shops to account for the medical market, so we would be required to take in any new retail stores; said he doesn't foresee at this time, banning anything new but allow the three shops to continue. Mr. Lamb said it is anticipated that the Liquor and Cannabis Board will have their rule making effective January 1, 2016 in order to be able to start licensing new retail stores for medical marijuana endorsement; said we could not set the number of stores as that is something the state has done. Mr. Lamb also commented that the Liquor and Cannabis Board will have public comment as part of their rule making, so we can submit comments. City Manager Jackson asked Council to think about what they would direct the Planning Commission to consider; said Council Study Session:08-18-2015 Page 5 of 6 Approved by Council:09-08-2015 the new law is more lenient on proximity to parks and schools and our regulations limit the potential locations for additional shops, so that would be one way to handle the situation. Mr. Lamb said we have not done an analysis of all the additional spaces one might use for marijuana, but that trying to find locations for shops is fairly restrictive, both from our laws and from trying to get a lease from landowners. Mr. Lamb noted the City would be getting revenue from the retail shops but not if we have a ban on retail and if we limit any new shops, that would be an effective ban. Councilmember Wick asked about buffers between shops, and Deputy Mayor Woodard asked about having one zone designed for marijuana, such as zones where liquor stores are permitted. It was determined that this process will proceed to the Planning Commission, and that staff will look at other alternatives an options to restrict license use as well as in-home use. 4. Advance Agenda—Mayor Grafos Councilmember Wick distributed copies of a letter addressed to Robin Toth of Greater Spokane Incorporated from Maul Foster Alongi concerning supporting consideration of creating a Port Authority in Spokane County, and whether we want to participate in the cost of a study. Councilmember Wick said the idea is to examine tools and opportunities to be more competitive with our Idaho partners and to see what a port district could do, or if a port district is even feasible; said the idea is to hire a consultant to gather data, and we are being asked to contribute a share of the cost for approximately $7,500 plus our share of the consultant's expenses. Council agreed to bring this item forward at next week's council meeting, thereby giving each Councilmember the opportunity to read the information contained in the letter from Maul Foster Alongi. S. Information Only: The (a) Bus Shelter Pads, and (b) Citywide Safety Project #0167 were for information only and were not discussed or reported. 6. Council Comments—Mayor Grafos There were no additional Council comments. 7. City Manager Comments—Mike Jackson Mr. Jackson said that staff is preparing to present a scope of work for tourism study at next week's meeting, and part of that topic would be how to form the committee to agree on study content. Mr. Jackson also mentioned the upcoming September 11 Council of Governments meeting and said that Commissioner O'Quinn asked him if we have a topic we would like to include on the agenda, and he suggested having Mr. Lamb present a talk on the new marijuana legislation. Councilmembers agreed. Councilmember Hafner asked if the Mayor would be willing to provide the state of the city report that he gave to GSI so everyone would be aware of what we are doing, and Mayor Grafos agreed. Councilmember Gothmann asked about including the GSI information about a port district, and Councilmember Wick said he would talk to the County about this topic. 8. Executive Session: Pending/Potential Litigation [RCW 42.30.110(1)(i)1 It was moved by Deputy Mayor Woodard and seconded to adjourn into executive session for approximately thirty minutes to discuss potential litigation, and that no action will be taken upon return to open session. Council adjourned into executive session at approximately 8:13 p.m. At approximately 8:48 p.m. Mayor Grafos declared Council out of executive session, and immediately thereafter, it was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. ATT y can Grafos,Mayo hristine Bainbridge, City Clerk' Council Study Session:08-18-2015 Page 6 of 6 Approved by Council:09-08-2015 L/ MAUL FOSTER ALONG ! 1329 North State Street,Suite 301 Bellingham.WA 98225 I 360 594 6262 I www.moulloster,com July 16,2015 Project No. 1120.01.03 Robin Toth Greater Spokane Incorporated 801 W.Riverside,Suite 100 Spokane,WA 99201 Re: Strategic Business Plan Proposal Dear Robin: Maul Foster & Alongi, Inc. (MFA) appreciates the opportunity to submit this proposal to prepare a Strategic Business Plan to support the consideration of creating a Port Authority in Spokane County pursuant to RCW 53.04. We have prepared this scope of work and budget to address the issues you raised in your RFQ as well as the recent discussion we had with your advisory committee. The MFA team will be led by Jim Darling and staffed by Bill Hager, both of whom have extensive port experience. In addition there may be a need for focused subconsulting assistance.The scope and budget reflect that possibility. Overall this process is likely to consist of three phases: • Phase 1: Development of Strategic Business Plan (Topic of this scope.) • Phase 2: Support for Community Outreach We understand that you have a working relationship with a public affairs firm; if requested, MFA could assist with support material and/or additional research that may arise.This phase is not included in this scope of work. • Phase 3: Implementation—Once a decision has been made there will be the need for preparation of implementing documents. These "keystone documents" are either required by State statute or represent best management practices. If requested, MFA is prepared to assist in this effort and, as part of the scope in Phase 1, MFA will prepare an inventory of the types of documents that will be needed for implementation. The cost for the preparation of the documents are not included in this scope of work. PHASE 1: SCOPE OF WORK Task 1—Workshops with Advisory Committee It is anticipated that a total of 2 on-site workshops with the GSI Advisory Committee will be needed to develop a strategic business plan. (The workshops will be timed so that field R;\P1120.01 Greater Spokane Incorporated\03_2015.07.16 Strategic Business Plan Proposal\Pf Strategic Business Plan.docc -,..,-. u th,. ,. 7/.--N, m ...... z5 ,t{!a,. . w 1 O Z ' , ','' N.CC E v W o a1 rt 0 00 w o 0 0 r•-1 Lrl 0 0 0 .1 O O O o 0 0 o O LD o w w N o LD o I--' .__I 'i O C) o V 0 O co N 0 O o D) N 0 0 0 N O o 0 0 0 0 0 o rO c/ D N to oo O % ' .U CI N ,� V ja COJ n V O C) C) O .-I O V o N L 0 D D D N O O O O O VO O1 .-t O N CC) LD D O vv. N O m LI) O lA M N .-I N m .1 N N N CO 0 0 0 0 M CO M LI) VO N 1S 111 N Q n M Lft!1 CQ C) 0 N rIA O '' et .+ VI VT 4) CO vv> V) (.4 V) iA VV? V1 V? V? l? VN Uo n nri iA Sh iA i? 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Workshops will be facilitated by MFA and be designed as follows: © Workshop 1: Kick off meeting with the Advisory Committee to layout the overall schedule, confirm additional interested parties and stakeholders to interview as part of the background research, identify key documents to review, solicit overall feedback from Committee members on their thoughts and vision for a new authority, identify potential port initiatives, and provide an overview of Washington public port authorities, structure and powers. Strategic discussion on findings to date, structure of the business plan, review of goals, mission and operating values of the proposed port. o Workshop 2: Review of the draft strategic business plan and financials, review of planned strategies (initiatives and projects),inventory of keystone implementation documents and mission vs margin considerations. (This will include a PowerPoint presentation about the proposed port that can be utilized by the Advisory Committee in Phase 2 activities.) Task 2—Research and Background In conjunction with the workshop schedule, the MFA team will conduct personal or small group interviews with identified key stakeholders to inform the business strategy with local knowledge. In addition, there will be background research into known and speculative development plans, likely conducted by phone interviews where appropriate and off site document review. Task 3—Draft and Final Strategic Business Plan The MFA team will produce both a DRAFT strategic business plan as well as a FINAL after review by the Advisory Committee. This plan will include a multiyear budget projection to the extent projects are identified, the identification of keystone documents for both management and governance,and will detail the proposed port's mission,values and planned strategies. Ports are required to adopt a Comprehensive Scheme of Harbor Improvements (CSHI) and the strategic business plan will be structured with that eventual requirement in mind. The purpose of the CSHI is to identify the specific intent of a port authority in carrying out its mission. (Please note the reference to"Harbor"is a historical carryover.) BUDGET The estimated cost to perform the proposed work in Phase 1 is $54,946 (see attached estimated budget which includes expenses). This cost estimate does not represent a lump sum. MFA bills for time and materials, consistent with the attached schedule of charges. MFA may apply money from one task to another to complete the scope of work. R:\P1120.01 Greater Spokane Incorporated\03 2015.07.16 Strategic Business Plan Proposal\Pf Strategic Business Plan.docx Robin Totht Project No, 1120.01.03 July 16,2015 Page 3 SCHEDULE MFA will begin work within 10 days of receiving authorization to proceed. This proposal is valid for 30 days, After you have reviewed this submittal, please indicate your approval of the proposal by signing below and returning the document to us as electronic or hard copy.. Please retain a copy for your records. Sincerely, Maul Foster&Alongi,Inc. JiDarling -----_ `fir ce President Principal lanner Attachments: Estimated Budget Strategic Business Plan Draft Work Plan Schedule of Charges General Terms and Conditions The above proposal, including all attachments, has been read and understood and is hereby agreed to and accepted. It is agreed that the attached "Schedule of Charges," "General Terms and Conditions" (which contains a limitation of liability provision), and Addendum(s), if any, form an express part of the Contract, as evidenced by my signature below: Greater Spokane Incorporated By Date Name Title (please print) R:\P1120.01 Greater Spokane Incorporated\03_2015.07.16 Strategic Business Plan Proposal\Pf Strategic Business Plan.docs Estimated Budget Greater Spokane incorporated Strategic Business Plan Maul Foster& Alongi,Inc, Task Hours labor DirectSubcontractors Total 1 Workshops 124 $13,498 $3,800 $0 $17,298 2 Research and Background 128 $21,000 $0 $2,000 $23,000 $0 3 Business Plan 115 514,648 $0 �— $14,648 Total Estimated Cost $54,946 R:\P1 120.01 Greater Spokane Incorporated\03_2015.07.16 Strategic Business Plan Proposal\GSI Budget.xlsx\Summary Budget 7/16/2015 i rvmulul of r, v u i V )ii FI C�1 )ItW i�i�'1{�; Ill�lr'P.,-.. ,,NII 1t.\8`\II��L,1 o It '‘`-�1�c\I1 �°`,�1II11 1 sill! i is , it(c�in ,j, I)lU) ii-,lC i 1� lin ,N...,�1-ii I ',A_,k9�I �< I` r.�li, v,,1;�s°ii 0 Z Research Tax base;Community O Economics;History of Effort in Past,Airport Additional Research - Budget and Financial Commitments;and se Community Projects U m Interview Additional '5 Interview Key Other Interviews U Communit Stakeholders , °C Identif y Q Y Leaders Interview , y Interviews Airport Leadership_: z O " Confirm , 'a Advisory Getting to: QzWhy ? Committee a Port . W W K o Strategic Workshop: Strategic Workshop: ar 1. Findings to Date 1. Review Draft of W 2. Structure of Strategic Strategic Business Oh Business Plan \ U Plan �-- >- h 3. Explore Early Vision / 2. Prioritize Planned r = en Y O and Goals Strategies > z 4. Understanding Ports 3. Mission vs Margin Q 0 & the Legal Considerations Authorities • U Final Strategic Business Plan: Q LEGEND 1. Multi-year Budget gg J Interactions B.Interviews Draft Strategic Projection ", Business Plan 2. identify&Prepare Select A Advisory Committee Keystone Documents Research&Reports 3. Articulate Key Messages 4. Strategic Plan MAUL FOSTER ALONG ! www.maultoster.com SCHEDULE OF CHARGES PERSONNEL CHARGES Principal $130—250/hour Senior $110- 170/hour Project $95 - 1,10/hour Staff $70- 110/hour GIS Professional $90- 180/hour Drafter/C_ADD Operator $70-95/hour Technical Writer/Editor $70- 85/hour Administrative Assistant $60- 85/hour Depositions and expert witness testimony,including preparation time,will be charged at 200 percent of the above rates. Travel time will be charged in accordance with the above rates. OUTSIDE SERVICES Charges for outside services, equipment, and facilities not furnished directly by Maul Foster & Alongi,Inc. will be billed at cost plus 10 percent. Such charges may include,but shall not be limited to the following: Printing and photographic reproduction Rented equipment Rented vehicles Shipping charges Transportation on public carriers Meals and lodging Special fees,permits,insurance,etc. Consumable materials SUBCONTRACTORS Charges for subcontractors will be billed at cost plus 15 percent. L•\MFA Policies&Procedures Manual\08 Project Management\Contract Forms\Original\MFA Schedule of Charges 2015.docx 1 DIRECT CHARGES Vehicle per mile $0.75 COMPUTER CHARGES CADD,ArcGIS $20.00/hour EQuIS,EVS,Modeling Applications $30.00/hour HELD EQUIPMENT The rates for field equipment are set forth in the Field Equipment Rate Schedule. DOCUMENT PRODUCTION The rates for document production arc set forth in the Document Production Rate Schedule. RATE CHANGES Schedule of Charges and Standard Equipment Rates are subject to change without notice. BILLING AND PAYMENT Invoices Evill be submitted monthly and shall be due and payable upon receipt. Interest at the rate of one and one-half percent(1.5%) per month, but not exceeding the maximum rate allowable by law, shall be payable on any amounts that are due but unpaid within (30) days from receipt of invoice, payment to be applied first to accrued late payment charges and then to the principal unpaid amount. 12\ Policies&Procedures Manual\08 Project\fana_ement\Contract Forms\Original\\IFA Schedule of Changes 2Ol5.docx 9 • MAUL FOSTER ALONGI www,moulfoster coni GENERAL TERMS AND CONDITIONS ARTICLE 1—PROFESSIONAL RESPONSIBILITY MFA shall perform the Services specified in this Agreement consistent with the level of care and skill ordinarily exercised by other professional consultants under similar circumstances at the same time the Services are performed;subject,however,to any express limitations established by the CLIENT as to the degree of care and amount of time and expense to be incurred and any other limitations contained in this Agreement No other representation,warranty or guaranty,express or implied,is included in or intended by this Agreement or any other of MFA's services,proposals,agreements or reports contemplated by this Agreement. ARTICLE 2—INDEPENDENT CONTRACTOR STATUS; LEGAL RELATIONSHIP The parties intend that MFA,in performing Services specified in this Agreement,shall act as an independent contractor and shall have control of its work and the manner in which it is performed. MFA shall be free to contract for similar services to be performed for other individuals or entities while it is under contract with CLIENT The parties further intend that nothing in this Agreement shall be construed or interpreted as requiring MFA to assume the status of an owner, operator,generator,person who arranges for disposal, transporter or storer,as those terms,or any other similar terms,are used in any federal,state or local statute,regulation,order or ordinance governing the treatment,storage,handling and disposal of any toxic or hazardous substance or waste. ARTICLE 3--BILLING AND PAYMENT Invoices will be submitted monthly and shall be due and payable upon receipt.Payment shall be made to Maul Foster&Alongi, Inc.and delivered to: Maul Foster&Alongi,. Inc. 400 East Mill Plain Blvd.,Suite 400 • Vancouver,WA 98660 Interest at the rate of one and one-half percent(1.5%)per month,but not exceeding the maximum rate allowable by law,shall be payable on any amounts that are due but unpaid within thirty (30) days from receipt of invoice,payment to be applied first to accrued late payment charges and then to the principal unpaid amount.MFA may,at its option,withhold delivery of reports and any other data pending receipt of payment for services rendered.Remittance will be mailed to MFA at the address noted on such invoices or MFA may otherwise advise. ARTICLE 4—LIMITATION OF LIABILITY CLIENT agrees to limit the liability of MFA, its officers, directors, shareholders, employees, agents and representatives (the "MFA Parties") to CLIENT for all claims and legal proceedings of any type arising out of or relating to the performance of Services under this Agreement(including,but not limited CO,MFA's breach of the Agreement,its professional negligence,errors and omissions and other acts) to the greater of$100,000 or the amount of MFA's Fee.Failure of CLIENT to give written notice to MFA of any claim of negligent act,error or omission within one(1)year of performance shall constitute a waiver of such claim by CLIENT. In no event shall MFA be liable for any direct,special or consequential loss or damages. MFA is solely responsible for performance of this contract, and no affiliated company, director, officer, employee, or agent shall have any legal responsibility hereunder,whether in contract or tort,including negligence. ARTICLE 5—INDEMNIFICATION Subject to the limitation of liability above, MFA shall indemnify, defend and hold CLIENT harmless from the proportionate share of any claim, suit,liability, damage, injury, cost or expense,including attorneys fees,or other loss (hereafter collectively called"Loss")arising out of(a) MFA Parties'breach of this Agreement or(b)MFA Parties'willful misconduct or negligence in connection with the performance of the Services under this Agreement. ALFA\L:\ALFA Policies&Procedures Mantra!\08 Project Managemeni\Contract Forms\With Clients\Original\MFA T&C.doc 1 • CLIENT agrees to indemnify,defend and hold harmless MFA Parties from any Loss arising out of(a) CLIENT's breath of the Agreement,or(h)CLIENT's willful misconduct or negligence in connection with performance of the Agreement.To the extent such Loss is caused by MFA's negligence,CLIENT shall indemnify,defend,and hold MFA harmless from the proportional share of the Loss resulting from the acts or negligence of others. ARTICLE 6—TERM OF AGREEMENT;TERMINATION The obligations of the parties to indemnify and the limitations on liability set forth in this Agreement shall survive the expiration or termination of this Agreement. ARTICLE 7—TIME OF PERFORMANCE/FORCE MAJEURE MFA makes no warranties regarding the time of completion of Services,and shall not be in default of performance under this Agreement where such performance is prevented,suspended or delayed by any Muse beyond MFA's control. Neither party will hold the other responsible for damages for delays in performance caused by acts of God or other events beyond the control of the other party and which could not have been reasonably foreseen or prevented.If such events occur,it is agreed that both partes will use their best efforts to overcome all difficulties arising and to resume as soon as reasonably possible performance of Services under this Agreement. Delays within the scope of this provision will extend the contract completion date for specified services commensurately or will,at the option of either party,make this Agreement subject to termination or to renegotiation. ARTICLE 8—SUSPENSION OF SERVICES CLIENT may suspend further performances of Services by MFA by ten(10)days prior written notice.If payment of invoices by CT-TENT is not maintained on a thirty (30) day current basis, MFA may suspend further performance until such payment is restored to a current basis. Suspensions for any reason exceeding thirty (30) days will, at the option of MFA, make this Agreement subject to termination or renegotiation. All suspensions will extend the contract completion date for specified services commensurately, and MFA will be paid for services performed to the suspension date plus suspension charges.Suspension charges are defined as those charges relating to costs incurred which are directly attributable to suspension of services, including, but not limited to, personnel rescheduling, equipment rescheduling,and/or reassignment adjustments. ARTICLE 9—CHANGED CONDITIONS If, during the course of the performance of the Services under this Agreement, conditions or circumstances develop or are discovered which were not contemplated by MFA at the commencement of this Agreement,and which materially affect MFA's ability to perform the Services or which would materially increase the costs to MFA of performing the Services,then MFA shall notify the CLIENT in writing of the newly discovered conditions or circumstances,and CLIENT and MFA shall renegotiate in good faith the terms and conditions of this Agreement. If amended terms and conditions cannot be agreed upon within thirty (30) days after the mailing of such notice,MFA may terminate the Agreement and be compensated as set forth in the section of this Agreement entitled TERM OF AGREEMENT;TERMINATION. ARTICLE 10—INSURANCE MFA agrees to use its best efforts to maintain Professional Liability, Commercial General Liability, Automobile Liability, statutory Worker's Compensation and Employers' Liability insurance coverage during the period of performance of services hereunder in the following minimum amounts: LIMITS OF LLABILITY A. Worker's Compensation Statutory Employer's Liability S1,000,000 B. Commercial General Liability (including Contractual Liability) Bodily Injury S1,000,000 combined single limits for each Property Damage occurrence or aggregate NAPA\L•\\1FA Polieiy&Pmcedum.Manual\t18 Project Management\Contract Forms\\kith Clients\Original\N FA T&C.doc 2 LIMITS OF LIABILITY C. Comprehensive Automobile Liability (Owned,Hired,and Non-owned Vehicles) Bodily Injury $1,000,000 combined single limits for each Property Damage occurrence or a Ttegate D. Professional Liability: S 1,000,000 combined single limits for each occurrence or aggregate At CLIENT's request,insurance certificates will be provided by MFA to evidence such coverages. ARTICLE 11—HAZARDOUS OR UNSAFE CONDITIONS CLIENT has fully informed MFA of the type,quantity,and location of any hazardous,toxic,or dangerous materials or unsafe or unhealthy conditions which CLIENT knows or has reason to suspect exists at all real property where the Services are to be performed(the"Project Site").CLIENT shall immediately inform MFA when it becomes aware of any new information as to the foregoing which may affect the project,such as information to constitute a CHANGED CONDITION subject to the provisions of Article 9 of this Agreement. MFA shall not be responsible for the health and safety of any persons other than the MFA Parties, nor shall have any responsibility for the operations,procedures or practices of persons or entities other than the MFA Parties. ARTICLE 12—RIGHT OF ENTRY AND UNAVOIDABLE DAMAGES Client agrees to grant or arrange for right of entry when deemed necessary by MFA to perform the Services at the Project Site, whether or not the Project Site is owned by CLIENT. CLIENT recognizes that the use of investigative equipment and practices may unavoidably alter conditions or affect the environment at the Project Site.While MFA will take all reasonable precautions to minimize damage to the Project Site,the cost of repairing any such damage shall be borne by CLIENT,and it is understood that the correction of such damage is not part of the Services or the Fee contemplated by this Agreement. ARTICLE 13—SUBCONTRACTORS MFA may,in its sole discretion,subcontract for the services of others without obtaining CLIENT's consent where MFA deems it necessary or desirable to have others perform certain services.If MFA,in its sole discretion,deems it necessary or desirable to obtain Client's advance concurrence as to any proposed subcontract,MFA may make a written request to CLIENT to review the qualifications and suggested scope of work to be performed by such proposed subcontractor and CLIENT shall either grant or deny such concurrence within a reasonable time after receipt of such request. ARTICLE 14—OWNERSHIP AND REUSE OF DOCUMENTS All documents furnished by MFA pursuant to this Agreement are instruments of MFA's services.MFA may retain an ownership and property interest therein,and MFA shall,in its sole discretion,have the right to dispose of or retain all such documents.Such documents are not intended or represented to be suitable for reuse by CLIENT or others. Any such reuse without specific written verification and adaptation by MFA for the specific purpose intended will be at the reuser's sole risk and without liability or legal exposure to MFA.Any transfer of electronic data hereunder is solely for Client's convenience"as is"without warranty as to contents,and is not the project deliverable unless specifically agreed to the contrary.NEPA disclaims all warranties express or implied with regard to any electronic data provided hereunder, including any warranties of mechantability or fitness for a particular purpose. ARTICLE 15—NO THIRD PARTY BENEFICIARIES There are no third party beneficiaries of this Agreement,and no third party shall be entitled to rely upon any work performed or reports prepared by MFA hereunder for any purpose whatsoever.CLIENT shall indemnify and hold MFA harmless against any liability to any third party for any Loss arising out of or relating to the reliance by any such third party on any work performed or reports issued by MFA hereunder. ARTICLE 16—DESIGNS AND DISCOVERIES In the course of providing Services to CLIENT, MFA may utilize or develop designs, ideas, discoveries, inventions, or improvements of these(collectively"Ideas"),made by the MFA Parties.CLIENT agrees that MFA's utilization or development MFA\L_\MF,\Policies&Procedures Manual\08 Project:Management\Contract Fomes\With Clients\Original\'IFA T&C.doc 3 • of such Ideas does not grant CLIENT any right in the form or ownership or license to such Ideas.All ideas uriliaed or developed while providing CLIENT Services shall be deemed to he property of MFA. ARTICLE 11—LAWS AND REGULATIONS Both parties will be entitled to regard all applicable laws,rules,regulations and orders issued by any federal,state,regional or local regulatory body as valid and may act in accordance therewith until such time as the same may be modified or superseded by such regulatory body or invalidated by final judgment in a court of competent jurisdiction, unless prior to such final judicial determination,the effectiveness of such law,rule or regulation has been stayed by an appropriate judicial or administrative body having jurisdiction. In the event there are changes in existing laws,codes,regulations,orders or ordinances,or the interpretation thereof,following the performance of professional services,CLIENT agrees to defend,indemnify and hold MFA harmless from any and all claims, including claims for fines or penalties imposed, resulting from or alleged to have resulted from noncompliance with or nonincorporation of such changes in professional services prior to the effectiveness of such changes. ARTICLE 18—ASSIGNMENT Neither party to this Agreement may delegate,assign,or otherwise transfer its rights and interests or duties and obligations under this Agreement without prior written consent of the other party. ARTICLE 19—ATTORNEYS' FEES AND COSTS If any action or proceeding is commenced co enforce or interpret any of the terms or conditions of this Agreement or the performance thereof,including the collection of any payments due hereunder, the prevailing party will be entitled to recover all reasonable attorneys' fees, costs and expenses,including staff time at current billing rates, court costs, and other claim-related expenses. If MPA is requested to respond to any mandatory orders for the production of documents or witnesses on CLIENNT's behalf regarding work performed by MFA,CLIENT agrees to pay all costs and expenses incurred by MFA not reimbursed by others in responding to such order,including attorney's fees,staff time at current billing rates and reproduction expenses. ARTICLE 20—GOVERNING LAW This Agreement shall be subject to,interpreted and enforced according to the laws of the State from which MFA's services are procured. ARTICLE 21—SEVERABILITY Any provision of this Agreement held in violation of any law will be deemed stricken and all remaining provisions shall continue valid and binding upon the parties.The parties will attempt in good faith to replace any invalid or unenforceable provision(s)of this Agreement with provisions which are valid and enforceable and which come as close as possible CO expressing the intention of the original provisions. ARTICLE 22—ENTIRE AGREEMENT This Agreement constitutes the entire agreement between CLIENT and MFA. It supersedes any and all prior written or oral agreements,negotiations,or proposals,or contemporaneous communications with respect to the subject matter hereof,and has not been induced by any representations,statements,or agreements other than those herein expressed. No amendment to this Agreement hereafter made between the parties will be binding on either party unless reduced to writing and signed by authorized representatives of both parties. AIFA\L:\ALFA Policia&Fmcedures Manual\OR Project Management\Contract Forms\With Clients\Original\MFA.T&C.doc 4