Loading...
2015, 10-06 Study SessionAGENDA CITY OF SPOKANE VALLEY CITY COUNCIL WORKSHEET STUDY SESSION Tuesday, October 6, 2015 6:00 p.m. CITY HALL COUNCIL CHAMBERS 11707 East Sprague Avenue, First Floor (Please Silence Your Cell Phones During the Meeting) DISCUSSION LEADER SUBJECT/ACTIVITY GOAL CALL TO ORDER ROLL CALL: 1. Eric Guth 2. John Hohman, Lori Barlow Stormwater Construction Grants Legislative Comprehensive Plan Update 3. Lori Barlow, Christina Janssen Painted Hills Development 4. Cary Driskell, Erik Lamb Proposed Contracting and Purchasing Code Amendments 5. Mayor Grafos Advance Agenda Discussion/Information Discussion/Information Discussion/Information Discussion/Information Discussion/Information 6. Information Only: (will not be reported or discussed): Community Development Block Grant 2016 Program 7. Mayor Grafos 8. Mike Jackson ADJOURN Council Comments City Manager Comments Discussion/Information Discussion/Information Note: Unless otherwise noted above, there will be no public comments at Council Study Sessions. However, Council always reserves the right to request information from the public and staff as appropriate. During meetings held by the City of Spokane Valley Council, the Council reserves the right to take "action" on any item listed or subsequently added to the agenda. The term "action" means to deliberate, discuss, review, consider, evaluate, or make a collective positive or negative decision. Study Session Agenda, October 6, 2015 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 2015 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Stormwater Construction Grants (Ecology FY17 Stormwater Water Quality Financial Assistance Grant Funding Programs) GOVERNING LEGISLATION: Federal Clean Water Act of 1987 -Section 319, Title 33 U.S.C. 1251-1376, RCW 70.146, 90.46 & 90.50A, WAC 173-95A, 173-98, & 173-240, and Storm and Surface Water Utility: SVMC 3.80. PREVIOUS COUNCIL ACTION TAKEN: Approval of 2016-2021 Stormwater CIP, June 9, 2015. BACKGROUND: On August 17, 2015, Ecology announced the opening of the combined financial assistance funding program. Each year, Ecology awards grants and loans on a competitive basis to implement high priority water quality projects throughout Washington State. Proposed projects address point and nonpoint source water pollution control issues. Public Works staff has evaluated Ecology's Fiscal Year 2017 grant criteria and are recommending two projects that are in the City's six-year Stormwater CIP. If approved by Council, staff would submit the Ponderosa Drive Stormwater Diversions and the Havana Stormwater Diversions at 8th & 14th projects. These projects would be submitted under the Stormwater Financial Assistance Program (SFAP). Design work for each of these projects is at the 30% design level and if awarded would be under construction in 2017. Application deadline for these grant programs is October 16, 2015. OPTIONS: Discussion RECOMMENDED ACTION OR MOTION: Consensus to add the proposed list of grant applications to the October 13, 2015 Council agenda for consideration and approval. BUDGET/FINANCIAL IMPACTS: All grants have matching requirements. Match for projects funded through Centennial, Section 319, and non -hardship SFAP funds is 25%. STAFF CONTACT: Eric P. Guth, PE — Public Works Director Art Jenkins, PE —Stormwater Engineer ATTACHMENTS: October 2015 Stormwater Grant Call Presentation Ecology Stormwater Construction Grants October 2015 2 cology Grant Call Issued August 17, 2015 Due October 16, 2015 4 Areas: The Centennial Clean Water Program (Centennial) o The Clean Water Act - Nonpoint (Section 319) WA State Water Pollution Control Revolving Fund Program (Loan) o Stormwater Financial Assistance Program (SFAP) 3 Centennial/Section 319 o Examples of Centennial projects: stream restoration, agricultural BMPs, OSS repair and replacement, stormwater activities, and protection of drinking water sources o Examples of Section 319 projects: watershed planning, water quality monitoring, outreach & education o 50-85% reimbursable for eligible costs, depending on project and local hardship o Currently, these programs have $0 in State budgets 4 State Revolving Fund (Loans) Q Provides loans to finance the planning, design, and/or construction of water pollution control facilities Subsidized/below market interest rates May forgive principal on a limited number of activities or projects 5 Stormwater Financial Assistance Program (SFAP) c+ Covers design and construction costs for water quality improvements Ecology awards to City from this program: $4.6M since 2012 (5 completed projects) o $3.3M for 2015-2017 (3 current projects) � 75% reimbursable, up to $5,000,000/grant call/city Possible construction: mid July 2016 to mid 2019 Suggest: Ponderosa Drive Diversions and Havana Diversions 0 PRIMO X MI r " City of Millwood I•-• City of Spokane rel • City of erty [take City of Spokane Valley Sullivan Bridges pokane Count 1 mat 7 onderosa Drive Diversions Remove up to 9 outfalls to a tributary of Chester Creek along Ponderosa Drive Located between Bates and Gertrude The preliminary design estimate increased project cost from $300k to $1M by increasing number of outfalls eliminated from 4 to 9 8 Havana Diversions Removes overflow(s) to City of Spokane Combined Sewer Outfall #34 Removes discharge to Glenrose Drain at 8th and Havana o Eliminates outfall at 14th & Havana o Preliminary design estimate increased project cost from $280,000 to $450,000 9 Questions & Discussion CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 2015 Department Director Approval: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation AGENDA ITEM TITLE: Comprehensive Plan Overview and Progress Report GOVERNING LEGISLATION: Growth Management Act (GMA) RCW 36.70A PREVIOUS COUNCIL ACTION TAKEN: None BACKGROUND: Per RCW 36.70A.130(1), every county and city in the state is required to conduct an update of its comprehensive plan and development regulations every 8 years. The City of Spokane Valley's update is due no later than June 30, 2017. In July 2015, staff updated the Council on the Comprehensive Plan update project. As of that date, Staff and Consultants had held public meetings, completed a Vision Report, and taken 26 Citizen -Initiated Amendment Requests (CARs) through Planning Commission and City Council Review. The Consultants had completed an audit of the Comprehensive Plan Goals and Policies, and completed a Draft Existing Conditions Report for the City's housing, land use, and transportation conditions. The Council was also updated on the authority to plan, and the Population Allocation process by Attorney Tadas Kisielius. At this time the Housing and Economic Trends and Transportation System Existing Conditions Reports have been finalized and the Planning Technical Advisory Committee (PTAC) is ready to move forward with a population forecast recommendation to the Steering Committee of Elected Officials (SCEO). Staff has also completed work on elements of the Comprehensive Plan update that are not directly related to the population allocation, and completed further analysis of the CAR's to the extent possible. Staff will provide an overview of the PTAC Process and recommendation, and the Existing Conditions Reports. Dave Andersen, Washington State Department of Commerce, will also be present to participate in the discussion regarding the PTAC. OPTIONS: N/A RECOMMENDED ACTION OR MOTION: N/A BUDGET/FINANCIAL IMPACTS: None STAFF CONTACT: John Hohman, Director and Lori Barlow, Senior Planner ATTACHMENTS: Existing Conditions Housing and Economic Trends Transportation System Existing Conditions Report Memo Power Point Presentation Existing Conditions Housing and Economic Trends September, 2015 Prepared for: City of Spokane Valley ECONorthwest ECONOMICS • FINANCE • PLANNING The Seattle Tower 1218 Third Avenue Suite 1709 Seattle, WA 98101 206.388.0079 This page intentionally blank orthwest ii Acknowledgments For over 40 years ECONorthwest has helped its clients make sound decisions based on rigorous economic, planning, and financial analysis. For more information about ECONorthwest: www.econw.com. ECONorthwest prepared this report to the City of Spokane Valley. It received substantial assistance from Van Ness Feldman. That assistance notwithstanding, ECONorthwest is responsible for the content of this report. For more information about this report: Morgan Shook shook@econw.com The Seattle Tower 1218 Third Avenue Suite 1709 Seattle, WA 98101 206.388.0079 ECONorthwest iii This page intentionally blank orthwest iv Table of Contents 1 INTRODUCTION 1 1.1 OVERVIEW 1.2 REPORT ORGANIZATION 1 1 2 EXISTING CONDITIONS SUMMARY 2 2.1 POPULATION AND DEMOGRAPHIC TRENDS 2 2.2 HOUSING TRENDS 3 2.3 ECONOMIC TRENDS 3 2.4 LAND BASE 3 Present Land Use 3 Present Land Capacity 4 2.5 DEVELOPMENT TRENDS 6 Residential Development 6 Commercial Development 6 Industrial Development 7 3 FOCUSED ANALYSIS OF ZONING ISSUES 8 3.1 MEDIUM DENSITY RESIDENTIAL ZONING 8 Results 8 Policy Considerations 9 3.2 MIXED USE ZONING 10 Results 10 Policy Considerations 11 3.3 OFFICE ZONING 12 Results 12 Policy Considerations 14 3.4 NEIGHBORHOOD COMMERCIAL ZONING 15 Results 15 Policy Considerations 15 4 TECHNICAL APPENDIX 17 4.1 POPULATION AND DEMOGRAPHIC TRENDS 18 4.1.1 Population Growth 18 4.1.2 Demographics 19 4.1.3 Educational Attainment 20 4.1.4 Income 21 4.2 HOUSING TRENDS 22 4.2.1 Housing Tenure 22 4.2.2 Household Size 22 4.2.3 Households with Children 23 4.2.4 Housing Affordability 23 4.3 ECONOMIC TRENDS 25 4.3.1 Gross Domestic Product 25 4.3.2 Employment 25 4.3.3 Taxable Retail Sales 27 4.3.4 Commute Patterns 28 4.4 LAND BASE 29 4.4.1 Present Land Use 29 ECONorthwest v 4.4.2 Residential Land Quantity 30 4.4.3 Commercial and Industrial Land Quantity 31 4.5 DEVELOPMENT TRENDS 32 4.5.1 Residential Development 32 4.5.2 Commercial and Industrial Development 36 Office 36 Retail 39 Industrial 41 4.6 PRO FORMA ANALYSIS SUMMARY 43 Apartment in MF -1 Zone 43 Mixed Use in the CMU Zone 45 ECONorthwest vi 1 Introduction 1.1 Overview The City of Spokane Valley is updating its Comprehensive Plan in accordance with the Growth Management Act (GMA), chapter 36.70A RCW. The Comprehensive Plan is the City's official statement concerning its vision for future growth and development. With this update, the City is reviewing its existing Comprehensive Plan and development regulations to ensure the plan and regulations comply with GMA requirements and to make any other policy changes the City determines are needed to help shape growth in the ensuing 20 year planning horizon. The City began the process of updating its Comprehensive Plan in November, 2014. To date, the City has completed a substantial portion of the public engagement process and has also received and analyzed numerous public comments. Additionally, planning staff and the City's consultant have completed an audit of the Comprehensive Plan's existing goals and policies which resulted in a recommendation to retain, remove, or revise specific goals and policies in order to improve the Plan's effectiveness and usability. This report provides background, context, and preliminary analysis to help the City make policy decisions on growth management strategies by identifying existing conditions of Spokane Valley's land uses and zoning. The Report will help the City gain a better understanding of how the City's existing zoning has performed and will perform. It will also help identify ways that the City can consider changing its Comprehensive Plan - and the Economic Development, Housing, and Land Use Elements, specifically - to best guide the City's growth over the next 20 years consistent with the GMA and the City's policy choices. The Report provides a snapshot of the City's current land uses, demographics and zoning and describes development and economic trends from the last several years. The Report also includes more detailed analysis of specific issues and trends identified by this analysis, public comments, or staff input. That additional analysis explores the impacts existing land use policies and zoning have on the identified issues. Where appropriate, the Report also identifies potential regulatory and policy options that the City can consider in the update process to address the identified issues. However, it is important to note that any policy suggestions in this document are preliminary. Any changes the City makes to its Comprehensive Plan and development regulations will be informed by additional data and information that is still being gathered through the update process, including the land capacity analysis. 1.2 Report Organization The remainder of the report is organized into three sections, including a technical appendix. • Existing Conditions Summary: This section summarizes the key findings of the existing conditions analysis. ECONorthwest 1 Portland 1 Seattle 1 Eugene 1 Boise 1 econw.com 1 ■ Focused Analysis of Zoning Issues: This section assesses four issues that have been identified in existing conditions and through public comment to better explore how the City's existing zoning is performing where trends suggest insufficient development of uses anticipated by that zoning district. ■ Technical Appendix: This appendix provides more detailed findings of existing demographic, economic, land use and development conditions and trends. 2 Existing Conditions Summary This section provides a summary of the existing conditions by topic. It establishes a baseline and common understanding of the conditions and trends affecting housing needs and economic growth in Spokane Valley by summarizing the most current data on Spokane Valley demographics, housing growth, economic growth, current land use, and real estate development patterns. Where possible and available, we sought to identify trends from that information based on several years of data. Additionally, to provide context, we have compared data and trends from Spokane Valley to that of Spokane County, more generally. The sections that follow provide a summary of key findings. More detailed information is included in the technical appendix of this report. 2.1 Population and Demographic Trends Spokane Valley has a similar demographic composition as Spokane County overall. The population will continue to grow in size and it is anticipated that the population will continue to "age," meaning that the percentage of the overall population that is over 65 years of age will continue to increase. ■ Spokane Valley has realized modest but steady population growth since it incorporated in 2003, growing at a rate of about one percent per year. ■ Generally, the City is similar in demographic and household composition to Spokane County. ■ However, Spokane Valley currently has a higher percentage of persons over the age of 65 compared to the County (14 percent to 13 percent) and also has a slightly older median age than the County, at 39.8 years old (Spokane County median age is 37.2 years old). ■ 21 percent of Spokane Valley residents have a Bachelor's degree or higher, compared to 28 percent in Spokane County. ■ Spokane Valley's median household income of nearly $48,000 is lower than the median household income of the County as a whole, which is approximately $49,200. ECONorthwest Existing Conditions: Economic and Housing Trends 2 2.2 Housing Trends Based on housing data from OFM and demographic data from the Census, recent trends indicate decreasing demand for larger single-family homes. A larger share of housing built in Spokane Valley is multi -family housing and household sizes and number of households with children have decreased over time. ■ Like its population growth, Spokane Valley's housing growth has been modest, but steady since it incorporated in 2003, growing at a rate of just over one percent per year. ■ Spokane Valley's housing characteristics are changing: More multi -family than single- family units are being built, the share of renters is increasing, average household size is decreasing, and the percent of households with children is decreasing. ■ Housing affordability is an issue; 35 percent of all Spokane Valley households are considered cost -burdened, which is a term defined by the U.S. Department of Housing and Urban Development (HUD) as, "Families who pay more than 30 percent of their income for housing." ■ The majority of renters in Spokane Valley are cost -burdened (52 percent). 2.3 Economic Trends The regional economy is increasingly a service -based economy providing commercial, professional, and retail services. The region and Spokane Valley has been slow to recover from the recession starting in 2008. ■ Service industries have accounted for most of the region's gross domestic product and job growth since 2001. ■ The Spokane Valley employment and taxable retail sales have been slow to recover from the 2008 recession. ■ The Regional Commercial and Corridor Mixed Use zones account for the largest share of retail sales in the city. These zones also realized the largest decrease in sales during the recession. 2.4 Land Base Present Land Use Based upon the GIS analysis of the County Assessor's present use designation, much of the City's land is used for just a few different uses, particularly single-family residential and general commercial uses, while industrial uses represent a far smaller portion of the City's land base as shown in Exhibit 1 below. ECONorthwest Existing Conditions: Economic and Housing Trends 3 Exhibit 1. Land Use by Acreage Land Use Category Acres Percent Single-family 10,021 49.7% General Commercial 3,667 18.2% Vacant Land 2,979 14.8% Industrial 1,306 6.5% Multi -family 1,123 5.6% Exempt/Utilities 1,054 5.2% Total 20,150 100.0% Source: Spokane County Assessor Residential Lands ■ Half of the City's land base is used for single-family housing, which is indicative of a suburban community. ■ Multi -family housing accounts for 5.6 percent of the City's land base with 1,123 acres. Commercial Lands ■ General commercial properties compose the second largest share of land uses with 18 percent of land area. Industrial Lands ■ There are 1,306 acres of industrial lands, accounting for approximately 6.5 percent of all land uses in the City. Present Land Capacity Under the City's current zoning, much of the capacity for future growth is within a few zones (R-3 and R-4 for residential and I-1 and I-2 for commercial and industrial land) as shown by Exhibit 2 and Exhibit 3. The capacity for future growth is determined by identifying vacant, partially -used, and underutilized land that can accommodate additional growth and then subtracting the land that is undevelopable (either due to environmentally critical areas, dedication for public purposes, or otherwise unsuitable for development). To determine the total housing unit and population capacity of the buildable residential land, the average housing unit density and household size is multiplied by the amount of buildable land in each residential zoning category. ECONorthwest Existing Conditions: Economic and Housing Trends 4 Residential Lands Exhibit 2. Residential Land Capacity Net Share of Buildable Unit Population Population Zone Acres Capacity Capacity Capacity R-3 653 3,787 9,468 47.4% R-4 151 1,101 2,751 13.8% MF -2 51 1,129 2,257 11.3% MF -1 87 958 1,917 9.6% MUC 165 1,017 1,525 7.6% R-2 101 402 1,005 5.0% CMU 74 651 976 4.9% R-1 15 32 79 0.4% Total 1,297 9,076 19,980 100.0% Source: City of Spokane Valley ■ Currently the City has the residential land capacity to accommodate over 19,980 additional people by 2037. ■ Multi -family zones (MF -1 and MF -2) account for nearly 21 percent of residential land capacity. Commercial Lands Exhibit 3. Buildable Commercial and Industrial Land Net Net Underutilized Net Buildable Zone Vacant Acres Acres Acres Share 1-2 379 208 587 46.9% 1-1 201 65 266 21.3% MUC 105 4 109 8.7% RC 44 52 96 7.7% CMU 37 47 84 6.7% C 28 29 57 4.5% 0 25 7 32 2.5% GO 9 5 14 1.2% NC 3 2 5 0.4% Total 831 419 1,250 100.0% Source: City of Spokane Valley ■ Most of the commercial areas in Spokane Valley are located along transportation corridors, apart from residential areas. ■ Spokane Valley currently lacks small-scale, neighborhood -oriented commercial areas within walking distance to many of the residential areas in the City. ECONorthwest Existing Conditions: Economic and Housing Trends 5 Industrial Lands ■ The large share (67 percent and 853 acres) of the City's commercial and industrial land capacity is in the City's two industrial zones, I-1 (266 acres) and I-2 (587 acres). ■ Spokane Valley has 580 acres of vacant industrial land in the I-1 and I-2 zones, of which the I-2 zone accounts for 379 acres 2.5 Development Trends Spokane Valley has realized a marked change in development since the recession in 2008. Residential development has been the most consistent category of growth. The City has increasingly realized more multi -family housing development, which has been characterized by new apartment complexes larger in size with several hundred units compared to older apartment buildings. At the same time, Spokane Valley has experienced slow commercial and industrial growth since 2008, which indicates there is a lack of employment growth generating a need for more space. Of the commercial growth that did occur, much of it has been around or north of Interstate -90. More detailed trends by use are outlined below and in the appendix. Residential Development ■ Multi -family housing has increased as a share of housing built over time, and demand has been strong since 2008 as vacancy rates reached a 15 -year low of 4 percent in 2013. Typically, a vacancy rate of 5 percent is considered normal, and a rate below 5 percent indicates new units may need to be built to meet demand. ■ The MUC and CMU zones have experienced the majority of multi -family housing development while the MF -1 zone has seen little development since 2012. ■ Single-family housing is still predominant as a percentage of overall housing type, but multi -family housing development has been a greater share of recent housing development indicating the demand for housing types in Spokane Valley is changing. ■ Redevelopment has been slow throughout the City, particularly in the Corridor Mixed Use (CMU) zone along Sprague Avenue, which has not realized any new multi -family development over four years. Commercial Development ■ Retail sales in Spokane Valley have been slow to recover from the recession, particularly in the City's largest sales tax producing zones (RC, C and CMU). ■ Demand for commercial properties in Spokane Valley is weaker, particularly for office space, which has a vacancy rate over 20 percent. Only when office vacancy rates dip below 10 percent is there an indication that the existing supply is getting constrained and new supply may be needed. Based on these existing vacancy rates, Spokane Valley has an oversupply of office space. ECONorthwest Existing Conditions: Economic and Housing Trends 6 ■ Retail vacancy rates in Spokane Valley decreased from over 10 percent in 2012 to about 6 percent presently. ■ Conditions have begun to improve over the last year for retail space as vacancy has decreased and rents have increased. Industrial Development ■ Spokane Valley has realized little new industrial development since 2008. ■ However vacancies have decreased substantially from over 20 percent to less than 10 percent today indicating new demand is utilizing unused existing space. ■ As the economy continues to recover and the region grows, new industrial or light industrial space may need to be developed to meet growing demand. ECONorthwest Existing Conditions: Economic and Housing Trends 7 3 Focused Analysis of Zoning Issues Several of the existing conditions and trends illustrated above raise questions about the performance of existing policies and regulations that prompted further analysis: ■ Multi -family zones (MF -1 and MF -2) account for nearly 21 percent of residential land capacity in the City, but the MF -1 zone has experienced little development in recent years. Are there barriers to new development in this zone? ■ To diversify the housing supply in Spokane Valley, are mixed use development projects feasible in the Corridor Mixed Use zone? ■ In recognition of high vacancy rates in office zones, are there barriers to development in the office zoning designations (Garden Office and Office)? ■ Based on comments received throughout the public engagement process, it is clear that the community desires more small-scale retail uses in neighborhoods. Is there potential for small-scale retail uses in the City, especially in the Neighborhood Commercial zone? To address these issues, we used a combination of several different methods including development financial pro forma analysis of prototypical development projects, evaluation of the zoning code requirements, and analysis of market trends and parcel composition. The analysis results are summarized below, but it is important to note that the analysis is of existing zoning based on current demographic trends is meant to inform subsequent decision-making by the City Council in this update process. 3.1 Medium Density Residential Zoning The MF -1 zone has not realized much development since 2012. Anecdotally, the City has heard that multi -family projects are not feasible in this zone. Over the same time the City has realized an average of almost 300 multi -family units built per year; the same average as before the recession in 2008. This indicates that the MF -1 is not as competitive for new residential development as other zones in its post -recession recovery. To assess whether there are issues with the MF -1 zone that restrict development feasibility, ECONorthwest evaluated building permit applications in the MF -1 zone to determine how many projects were proposed for the MF -1 zoned compared to other zones. The analysis also conducted a pro forma analysis of a hypothetical apartment project based on the existing MF -1 regulations. Results The MF -1 zone has realized little multi -family development since 2012. The largest share of permitted units (70%) were in mixed use zones. Just one permit for 12 units was issued in the MF -1 zone from 2012 to 2015, and the project applicant later submitted a CAR application requesting an increase in the density allowed on the site. ECONorthwest Existing Conditions: Economic and Housing Trends 8 To get a better sense of the reasons for the slow growth in the MF -1 zone despite the increasing demand for multi -family development, generally, a financial analysis of a hypothetical apartment development was conducted. A summary of the analysis and assumptions can be found in the appendix. The hypothetical analysis indicates new apartment development is not currently feasible in the MF -1 zone under current regulations because the cost exceeds the return. ■ For a one -acre lot, the hypothetical apartment project would have 12 units and 14 surface parking spots. ■ After accounting for the building area and parking lot, over 28 percent of the lot is unused due to the 12 units per acre density limit, preventing full utilization of the site and limiting financial return on the project. This density limit also prevents any potential multi -family development from reaching the zone's 60 percent lot coverage limit. ■ Based on the pro forma analysis, with current rent levels and density limits (12 units per acre) in the MF -1 zone, development costs (including land acquisition) would need to be 30 percent or more lower than current costs for an apartment building to be financially feasible in the MF -1 zone, as shown in Exhibit 38 in the Technical Appendix. ■ To improve the financial feasibility for new multi -family housing development potential development needs to be able to maximize the development potential of the full site. Policy Considerations For an individual project's costs and revenues, the City has limited to no ability to affect rent levels in the near-term. As a result, most of the options available to the City are related to reducing costs. Options include: ■ The City could consider exploring other types of medium density housing that are less expensive to construct, but that are not currently allowed within the MF -1 zones. Such housing typologies could be viable alternatives in the MF -1 zone because they are denser than single-family dwelling units and provide a transition between lower density and higher density zones. ■ The City could consider rezoning some areas currently zoned MF -1 to zoning designations that allow higher density residential uses. ■ To support additional housing types, the City could consider adjustments to the minimum lot size, setbacks, lot width, and other development standards in the MF -1 zone. ■ The City could consider using the multi -family tax exemptions (MFTE) for medium density housing types (which may include affordable housing provisions). ECONorthwest Existing Conditions: Economic and Housing Trends 9 3.2 Mixed Use Zoning The Corridor Mixed Use (CMU) zone has realized little new development (of any type), both along Sprague Avenue and Trent Avenue. To assess the development potential within this zone, ECONorthwest conducted a pro forma analysis of a hypothetical residential mixed use project on Sprague Avenue based on the CMU development requirements. The analysis also compared land values throughout the City. Areas with higher land values necessitate higher density development to offset the higher development cost. Results Overall, the lack of redevelopment is currently due to project economics where anticipated rents do not support more costly vertical mixed use development rather than an issue with the zone regulations, specifically. ■ As explained in the Technical Appendix in Exhibit 39, the analysis assumed a hypothetical two story mixed use project on a one acre lot along Sprague Avenue. The project would have 22 dwelling units above 21,000 square feet of retail, common area, and tuck -under, ground -level parking. The building would have 67 parking spaces in total. ■ Due to the higher cost of construction for vertical mixed-use development, expected rental income would have to increase by over 25 percent or more for vertical mixed-use development to be financially feasible, as shown in Exhibit 40 in the Technical Appendix. ■ Property values along Trent Avenue are lower than along Sprague Avenue or other corridors. Lower land value is likely due to proximity to industrial uses, proximity to the railroad tracks, and distance from major transportation routes, such as Interstate -90. As a result, redevelopment is not as competitive here relative to other locations in the City due to the less -desirable location. ECONorthwest Existing Conditions: Economic and Housing Trends 10 Exhibit 4. Assessed Land Value per Square Foot Assessed Land Value/SF < $2.00 $2.01- $4.00 $4.01- $6.00 $6.01- $8.00 > $8.00 Source: City of Spokane Valley, Spokane County i 0 1 1 2mi IJ 1 I Policy Considerations ■ Targeted incentives, such as a Multi -Family Tax Exemption for housing, may help new developments reach project feasibility. ■ The City could consider reducing parking requirements, including for commercial uses. Lower parking requirements for residential and commercial uses could provide more flexibility in site development and reduce construction costs, potentially increasing project feasibility. ■ The City could consider focusing mix -used zones in areas and corridors where multi- family development is more feasible and served by transit. ■ The City could consider reducing setback standards or reducing open space requirements in the mixed-use zones to allow property owners greater ability to develop their property. ECONorthwest Existing Conditions: Economic and Housing Trends 11 3.3 Office Zoning Recent office development in the City has clustered around Interstate -90, outside of the two zoning districts specifically designed to support office development. These areas in which office development has occurred have good access, visibility, and sizable undeveloped parcels, particularly in the MUC zone. By contrast, much of the City's two zones specifically oriented toward office development lack these attributes. Specifically, the Garden Office (GO) and Office (0) zones are concentrated along major north -south corridors (Argonne, Pines and Evergreen), and have not realized much new office development since 2004. Currently, these zones include a mixture of uses, including retail and single-family homes. The zone is also characterized by parcel sizes typically less than 0.75 acres, which makes it hard to assemble land for sizable new office developments. ECONorthwest conducted additional analysis to try to identify potential causes of the lack of office development in the office zones. Specifically, we analyzed recent office developments in Spokane Valley to assess whether available vacant land is suitable or desirable for new office development. Vacant and underutilized parcels in these zones were also assessed to determine if they could accommodate the type of office uses Spokane Valley has realized recently. Results Currently, there is low demand for office space as indicated by a current vacancy rate for office space over 20 percent and that the City has absorbed (i.e. space leased less space vacated) only a small amount of office space over the last couple years. Most new office space built in the last ten years has occurred near Intersate-90 and/or in the Mixed Use Center zone, as can be seen in the map below. ECONorthwest Existing Conditions: Economic and Housing Trends 12 Exhibit 5. Office Development in Spokane Valley 1 i �,\\ J .. L./ -� / / Jrr— ' _ • • j• • •• ..• 4 Spokane • ! Valley • • • L, .s 5 r- ti`- I---1 r i Source: CoStar Office Development Rentable Building Area < 10,000 10,000 - 25,000 25,000 - 50,000 50,000 - 100,000 > 100,000 Built before 2004 • Built between 2004 and 2014 4 V r Liberty ake -r • • The absorption (space leased less space vacated) of office space since the recession has been negative, indicating more vacancies than before the recession. • In the last two years the City has absorbed less than 10,000 square feet of office space a year on average. • A typical small office building built since 2004 had at least 20,000 building square feet plus surface parking. Assuming that this threshold of building and parking space reflects market considerations for development projects, this translates to needing a development site around 35,000 square feet or more to accommodate a new office development project. • The Office (0) and Garden Office (GO) zones only have a few well suited sites 35,000 square feet in size or larger that could support similar new office developments. The map below shows potential office development sites in the 0 and GO zones that could be developed for this type of small office building based on size and development status (i.e. either vacant or redevelopable). Vacant and redevelopable parcels are in green. Dark green have one ECONorthwest Existing Conditions: Economic and Housing Trends 13 acre or larger (good development potential) and the lighter green are half an acre to one acre in size (some potential). Exhibit 6. Developable 0 and GO Zoned Sites D — — ' Liberty E'— I Spokane r� Millwood r s� i /JI e" U u_ Broadway Broadway • Spokane 3 Sprague Valley e-\ FM fission R 4th v 3rd 4th ;- -, ' i '�.. m 1 cn 5 m 8th r--: L--, cn o 0 �` Ll (:). CO - - - V 16th Q- ---;1 ` d Office Site Potential MI Good Potential Zoning Type 0 & GO o Q_ 32nd I i o -I D 0 c c 1 - 2 mi Policy Considerations • The MUC and other areas in proximity to Interstate -90 may be better suited for future office development when the market improves. These areas have good transportation access and development sites large enough to support sizable office developments. • Medical office uses may be a use likely to see more demand due to the areas aging population and the Affordable Care Act's emphasis on outpatient care. • Due to small parcel sizes and distance from Interstate -90 most of the existing vacant land in the Office and Garden Office zones are unlikely to be desirable locations for new office development, based on sites used for past office development projects. • Vacant areas in the 0 and GO zones (especially those areas along major corridors with good transit service) are suitable for uses for which there is demand, such as additional multi -family housing. ECONorthwest Existing Conditions: Economic and Housing Trends 14 ■ Accordingly, the City could consider policy or regulatory changes that would provide opportunity for development of other types of uses for which there is higher demand, such as residential uses. Such changes could be in the form of additional permitted uses in these office zones or rezones, where appropriate, to open up more development options. 3.4 Neighborhood Commercial Zoning Spokane Valley lacks small-scale, neighborhood -oriented commercial areas within walking distance to many of the residential areas in the City. Based on comments received throughout the public engagement process, it is clear that the community desires more small-scale retail uses in neighborhoods. Additionally, small and local businesses can help to achieve a vibrant retail market, especially with increasing competition from online options, warehouse retail stores, and established regional shopping centers. To assess what opportunities exist for adding new retail uses in residential areas (either stand- alone retail developments or as part of a mixed use project), ECONorthwest assessed the number of vacant or partially -vacant parcels for small-scale retail uses at major intersections in residential areas and evaluated the Neighborhood Commercial zoning regulations. The analysis also references the mixed use pro forma results to further assess the prospects for mixed use redevelopment. Results Based on the parcel analysis, opportunities for small-scale, neighborhood -oriented commercial are fairly limited. ■ There are only two to three vacant or buildable sites at major intersections in residential areas that are large enough to support even a small-scale retail uses. ■ The residential uses surrounding these sites are characterized by low density housing. While further analysis may be necessary to confirm, we have some concern that the low density development pattern may limit market demand for these neighborhood scale uses. ■ However, the sizable number of home business permits in residential areas of the City may represent latent demand for small-scale commercial spaces nearby. ■ As discussed above and in the appendix, the pro forma analysis also determined that vertical mixed use redevelopment is not feasible in the near-term. Policy Considerations ■ The City could consider ensuring that the few vacant parcels that could support new retail uses are appropriately zoned to allow neighborhood commercial uses. ECONorthwest Existing Conditions: Economic and Housing Trends 15 ■ The City could consider changing policies and zoning in appropriate commercial corridors (or adjacent block faces) to allow local -serving commercial uses in close proximity to existing residential neighborhoods. ■ Long-term, the City could lay the groundwork for new neighborhood nodes by allowing small, neighborhood scale retail and mixed use buildings at major intersections (or blocks), even if these areas are currently built with residences. Over time, these residences may be converted to commercial uses, become locations for more intense home businesses, or otherwise redeveloped for mixed use projects. ■ Parking requirements are often a constraint for small retail businesses. The City may want to review its parking requirements to ensure they are not a barrier for new small- scale retail uses in those areas. ECONorthwest Existing Conditions: Economic and Housing Trends 16 4 Technical Appendix The Technical Appendix provides detailed numbers and finding for the existing conditions analysis by each of the five sections: • Population and Demographic Trends: This section looks at population and demographic characteristics of Spokane Valley in comparison to Spokane County. • Housing Trends: This section looks at trends related to household characteristics of Spokane Valley in comparison to Spokane County. • Economic Trends: This section looks at employment by sector, retail sales and commuting patterns in Spokane Valley. • Land Base: This section looks at current land use in the City and the capacity for future growth. • Development Trends: This section looks at the real estate market fundamentals for multi -family, office, retail, and industrial uses in Spokane Valley. Data Sources used in the existing conditions analysis include: • Population and Demographic Trends: US Census Bureau and the Washington Office of Financial Management • Housing Trends: US Census Bureau and the Washington Office of Financial Management • Economic Trends: US Bureau of Economic Analysis, Washington Employment Security Department, Washington Department of Revenue, and the City of Spokane Valley permit data. • Land Base: City of Spokane Valley parcel data, land quantity analysis, and permit data. • Development Trends: Washington Office of Financial Management, US Census Bureau, and CoStar'. • Pro Forma Analysis: CoStar and RS Means2. 1 CoStar is a national commercial real estate information company. www.costar.com 2 RS Means is a proprietary national construction cost data service. www.rsmeans.com ECONorthwest 1 Portland 1 Seattle 1 Eugene 1 Boise 1 econw.com 11 4.1 Population and Demographic Trends 4.1.1 Population Growth ■ In 2003, shortly after its incorporation, Spokane Valley had a population of 82,985 people. ■ From 2003 to 2014, Spokane Valley grew slightly more slowly than Spokane County and Washington at 0.9 percent per year or 10.9 percent over the period. By 2014, it reached a population of 92,050 people. ■ During this period, Spokane Valley accounted for 16.3 percent of total population growth in the Spokane County. Exhibit 7. Population growth, Spokane Valley, Spokane County, and Washington State, 2003-2014 Population Change 2003 to 2014 Area 2003 2014 Number Percent AAGR Spokane Valley 82,985 92,050 Spokane County 428,889 484,500 Washington 6,126,885 6,968,170 9,065 55,611 841,285 10.9% 13.0% 13.7% 0.9% 1.1% 1.2% Source: Washington Office of Financial Management April 1 Population Estimates. ECONorthwest Existing Conditions: Economic and Housing Trends 18 4.1.2 Demographics ■ Overall Spokane Valley and Spokane County have a very similar demographic composition. ■ In 2013, Spokane Valley had a median age of 39.8, which is slightly older population than Spokane County with a median age of 37.2. In addition, 14 percent of Spokane Valley's population is over age 65. ■ Both geographies are aging and had a higher proportion of individuals 65 years and older in 2013 as compared with 2005. Exhibit 8. Population distribution by age, Spokane Valley and Spokane County, 2005-2013 100% 80% - 60% - 40% - 20% - 0% 10% 59% 14% 60% 2005 2013 Spokane Valley 12% 61% 13% 61% ■ 65+ 20-64 • 0-19 2005 I 2013 Spokane County Source: US Census ACS 1 year estimates, 2005 Table S0101 and ACS 5 year estimates, 2009-2013 Table S0101 ECONorthwest Existing Conditions: Economic and Housing Trends 19 4.1.3 Educational Attainment ■ From 2005 to 2013, the percentage of individuals with a bachelor's degree or higher in Spokane Valley decreased by two percentage points to 21 percent of individuals over age 25. ■ Both geographies saw a decrease in the proportion of the population with less than a high school degree over the period. ■ Overall, Spokane County has a greater rate of educational attainment in 2013 as compared with Spokane Valley. Exhibit 9. Educational attainment of the population age 25 and older, Spokane Valley and Spokane County, 2005-2013 100% 80% 60% 40% 20% 0% 23% 21% 67% 71% 26% 65% 28% 64% 2005 2013 I 2005 2013 Spokane Valley Spokane County • Bachelor's Degree or higher High School, Associate's Degree, or Some College ■ Less than a High School Degree Source: US Census ACS 1 year estimates, 2005 Table S1501 and ACS 5 year estimates, 2009-2013 Table S1501 ECONorthwest Existing Conditions: Economic and Housing Trends 20 4.1.4 Income • Between 2005 and 2013, median household income grew by more than $10,000 in Spokane Valley but it is still below the Spokane County median income. • Despite this positive change, households in the lowest income bracket (those making less than $25,000) constituted nearly one third of all households in Spokane Valley in 2013. • 59 percent of households in Spokane Valley made less than $50,000 in 2013 as compared with 51 percent of households in Spokane County. Exhibit 10. Median Household Income, Spokane Valley and Spokane County, 2005-2013 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $47,897 $37,178 in 0 0 N Spokane Valley $49,233 Spokane County Source: US Census ACS 1 year estimates, 2005 Table S0101 and ACS 5 year estimates, 2009-2013 Table S0101 Exhibit 11. Income distribution of households, Spokane Valley and Spokane County, 2005-2013 Spokane County 2005 2013 2005 To a) c co to 2013 25% 28% 25% 26% 12% 13% 36% 31% 0% 20% 40% 60% 9% 9% • Less than $25,000 $25,000 - $50,000 • $50,000 - $75,000 $75,000 - $100,000 • $100,000+ 80% 100% ECONorthwest Existing Conditions: Economic and Housing Trends 21 Source: US Census ACS 1 year estimates, 2005 Table B19001 and ACS 5 year estimates, 2009-2013 Table DP03. 4.2 Housing Trends 4.2.1 Housing Tenure ■ Spokane County's renter and owner occupied housing share remained consistent with only a one percentage point increase over the period. In both geographies, renter - occupied housing constituted slightly over a third of all housing units. ■ Renter occupied housing units in Spokane Valley increased by four percentage points from 2005 to 2013. Exhibit 12. Housing Tenure, Spokane Valley and Spokane County, 2005-2013 Spokane County Spokane Valley 2005 2013 2005 2013 35% ■ Renter Occupied Housing 34% 38% 0% 20% 40% 60% 80% 100% Source: US Census ACS 1 year estimates, 2005 Table B25003 and ACS 5 year estimates, 2009-2013 Table B25003. 4.2.2 Household Size Owner Occupied Housing ■ In 2013, the average household size of both geographies was similar at just over 2.4 persons per household. ■ Average household size slightly decreased in Spokane Valley by 0.04 persons from 2005 to 2013. ■ In the County average household size increased by 0.05 persons. Exhibit 13. Average Household Size, Spokane Valley and Spokane County, 2005-2013 Average Household Size Area 2005 2013 Spokane Valley Spokane County 2.47 2.43 2.39 2.44 ECONorthwest Existing Conditions: Economic and Housing Trends 22 Source: US Census ACS 1 year estimates, 2005 Table S1101 and ACS 5 year estimates, 2009-2013 Table S1101. 4.2.3 Households with Children ■ In 2013 approximately 31 percent of both geographies' households had children. ■ The percent of households with children decreased in both Spokane Valley and Spokane County between 2005 and 2013. ■ Spokane Valley saw a decrease of nearly five percentage points from 35.6 percent to 30.7 percent while Spokane County experienced a small decrease in the number of households with children. Exhibit 14. Percent of households with children, Spokane Valley and Spokane County, 2005-2013 40.0% 30.0% - 20.0% - 10.0% 0.0% 35.6% 30.7% 1 2005 2013 Spokane Valley 31.3% 30.6% 2005 2013 Spokane County Source: US Census ACS 1 year estimates, 2005 Table S1101 and ACS 5 year estimates, 2009-2013 Table S1101. 4.2.4 Housing Affordability ■ For sale housing has become more affordable since 2007 with the decrease in housing prices and mortgage rate; an index value above 100 indicates housing is more affordable. ECONorthwest Existing Conditions: Economic and Housing Trends 23 Exhibit 15. Housing Affordability (Mortgage Payment to Median income) Index 225 $250,000 200 175 0 75 50 25 0 oOrY 00`3 0N, cle 0� O0h 000 001 00� 000 O,0 ON. ON. ON. ti ti ti ti title ti ti ti ti ti ti Spokane County Statewide -Median Price Source: Runstad Center for Real Estate, University of Washington $200,000 $150,000 $100,000 $50,000 so Median Price • Overall, 36 percent of all households in Spokane Valley are considered cost -burdened. In both Spokane Valley and Spokane County the percentage of cost -burdened households with a mortgage increased the most between 2005 and 2013 compared to those renting. • However, in both jurisdictions, over half of renters are cost burdened. The share of renters who were cost -burdened remained relatively consistent from 2005 to 2013, and actually decreased in Spokane Valley. Exhibit 16. Cost -burdened households by type, Spokane Valley and Spokane County, 2005-2013 Spokane Valley Spokane County 2005 26% 2013 2005 2013 35% 54% 0% 20% 40% 54% 60% Overall • Owners with mortgage Renters ECONorthwest Existing Conditions: Economic and Housing Trends 24 Source: US Census ACS 1 year estimates, 2005 Table B25106 and ACS 5 year estimates, 2009-2013 Table B25106. 4.3 Economic Trends 4.3.1 Gross Domestic Product • The Spokane region's economy has steadily grown with gross domestic product increasing at an average annual rate of 2.75 percent in inflation adjusted dollars. • Almost all of the region's economic growth has been in service providing industries, as opposed to growth in goods -producing industries or government. Exhibit 17. Spokane Metropolitan Statistical Area, Real Gross Domestic Product (2005$) $45,000 Total GDP Per $40,000 Capita GDP per Capita $35,000 — $30,000 ....... Private services $25,000 providing industries $20,000 $15,000 Private goods - $10,000 producing industries $5,000 $p Government Oti o O3 O°` O`' OO OA O`b OO yo titi y`l' O O O O O cO cO cO �O cO cO O Source: Bureau of Economic Analysis 4.3.2 Employment • Employment in Spokane County between 2002 and 2014 reflects the broad economic trends of the past decade; job growth increased steadily until the financial crisis in 2009 and has slowly begun to recover since. • The County's job mix has remained consistent over the twelve-year period. • Services, such as education, health care, and professional and technical services, compose the largest share of the county's employment base at 46 percent of the total. • The service sector also experienced the greatest growth at just over four percent. ECONorthwest Existing Conditions: Economic and Housing Trends 25 Exhibit 18. Number of jobs by sector, Spokane County, 2002-2014 250,000 200,000 150,000 8 E 0 £ 100,000 50,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* FIRE • Construction • Manufacturing • WTU • Retail • Government • Ag/Resources • Services Source: Washington Employment Security Department, Quarterly Census of Employment and wages 2002-2014 Note: At the time this chart was made, fourth quarter estimates for 2014 were unavailable. Employment numbers for 2014 are the average of quarters 1-3. • There were 2,504 home employment permits issued between 2008 to 2015 in Spokane Valley, averaging over 400 permits a year. • The number of these home employment permits still active is not known, however. Exhibit 19. Home Employment Permits, Spokane Valley, 2008-2015 I _ _ I I Millwood- iic▪ 5 Spokane Valley r= f ECONorthwest Existing Conditions: Economic and Housing Trends 26 Source: City of Spokane Valley 4.3.3 Taxable Retail Sales • Similar to jobs, taxable retail sales in Spokane Valley decreased during the recession after a period of strong growth and are slowly beginning to grow again, but they have not returned to the 2007 peak. • The recession's impact on taxable retail sales was significant with taxable retail sales in the region dropping by about $500 million from 2007 to 2010. • Retail sector sales constituted 63 percent of all taxable retail sales in 2013. Exhibit 20. Inflation-adjusted taxable retail sales by sector, Spokane Valley, 2004-2014 • $2,500 $2,000 , , , $1,500 1 ■Other Construction 1-1-1-iiiiiii $1,000 ■ Services ■ Retail $500 $0 Taxable Retail Sales 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Washington Department of Revenue, Taxable Retail Sales, 2000-2014 • In 2013, the Regional Commercial zone accounted for 40 percent of Spokane Valley's total taxable retail sales. The Corridor Mixed Use and Community Commercial zones accounted for 15 percent of the total. • In 2007, the Regional Commercial zones accounted for 43 percent of total TRS, and most of the decrease in taxable retail sales from 2007 to 2010 occurred in the Regional Commercial zone. • Since 2004, retail sales in the Mixed Use Center zone have more than doubled. ECONorthwest Existing Conditions: Economic and Housing Trends 27 Exhibit 21. Inflation-adjusted taxable retail sales by zone, Spokane Valley, 2004-2013 Taxable Retail Sales $2,500 o _ , 2 $2,000 : , $1,500 $1,000 $500 so 1 i IIIA 1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Washington Department of Revenue, Taxable Retail Sales, 2000-2014 4.3.4 Commute Patterns ■ MUC O & GO ■ Other 1-1 &I-2 C & CMU RC ■ Spokane Valley residents tend to work close to home with the almost 80 percent of workers employed in the City and the City of Spokane. ECONorthwest Existing Conditions: Economic and Housing Trends 28 WHERE SPOKANE VALLEY RESIDENTS WORK Number of Jobs j High : 5 _ Urban Growth Area Boundary IL::: J City Boundary - Low:1 r•i Ai way `71 Heights 4 tri .I >' 0 2 4 Miles Source: US Census On The Map Data, 2011. 4.4 Land Base 4.4.1 Present Land Use z O z 0 2 O • Single-family housing constitutes the largest share of land use within Spokane Valley making up 50 percent of all land area. • General commercial properties compose the second largest share of land uses with 18 percent of land area. • At almost 3,000 acres, vacant land is the third highest land use category in the City. A sizable shore of this land is in the northeastern part of the City. • Public facilities and multi -family housing has the smallest share with just five and six percent of total land area, respectively. • 90 percent of all residential land is zoned single-family and 10 percent is zoned multi- family. ECONorthwest Existing Conditions: Economic and Housing Trends 29 Exhibit 22. Present Land Use, Spokane Valley, 2015 1 'S.'I Lj i11. -mss... i • ▪ r low_ i r.r,*1- ;� -�� sem.+� it '%d . - • -... --_ r . '4t is ...-4. / ► . aIF -il 4 1 .. ■R ��"� ,, Spokane 1.. 14 ,-,„3------) - .I IIB', • 4'� 1 ••1,•_•f-•+...-- Land Use Other Single-family Multi -family - General Commercial • Industrial Vacant Land - Exempt/Utilities rw -T J.. tea'■ IIYSIIi . -•_- : drat. "= 1- r ■; ■ ••* 0 I f • 1 2 mi I I Source: City of Spokane Valley GIS. Exhibit 23. Land Use Land Use Category 1. ■Lrr. • 4. by Acreage, Spokane Valley, 2015 Acres Percent Single-family General Commercial Vacant Land Industrial Multi -family Exempt/Utilities Total 10,021 3,667 2,979 1,306 1,123 1,054 20,150 49.7% 18.2% 14.8% 6.5% 5.6% 5.2% 100.0% Source: City of Spokane Valley GIS. Liberty Lake r-- 4.4.2 Residential Land Quantity • Under current zoning, Spokane Valley has capacity for over 9,000 additional housing units and over 19,980 people based on density and household size assumptions. • The largest share of the City's capacity is in the Residential 3 (R-3) zone with 47 percent of the residential land capacity. The R-4 zone has the second most capacity. ECONorthwest Existing Conditions: Economic and Housing Trends 30 ■ The multi -family zones (MF -1 and MF -2) also have a sizable share of the City's residential capacity. Exhibit 24. Residential Land Capacity Net Share of Partially Used Underutilized Buildable Unit Population Population Zone Parcels Vacant Acres Acres Acres Acres Capacity Capacity Capacity R-3 1,214 197 456 0 653 3,787 9,468 47.4% R-4 207 123 27 0 151 1,101 2,751 13.8% MF -2 140 26 25 0 51 1,129 2,257 11.3% MF -1 193 39 48 0 87 958 1,917 9.6% MUC 181 163 0 1 165 1,017 1,525 7.6% R-2 198 51 49 0 101 402 1,005 5.0% CMU 316 56 0 18 74 651 976 4.9% R-1 27 13 3 0 15 32 79 0.4% Total 2,476 669 608 20 1,297 9,076 19,980 100.0% Source: City of Spokane Valley 4.4.3 Commercial and Industrial Land Quantity ■ The City's industrial zones (I-1 and I-2) have the most buildable acres of all commercial and industrial zones. ■ Vacant industrial land in the I-1 and I-2 zones accounts for 46 percent (580 acres) of the City's commercial and industrial capacity. ■ The Mixed Use Center zone also has a sizable amount of vacant land with 105 acres. Exhibit 25. Buildable Commercial and Industrial Land Net Net Underutilized Net Buildable Zone Vacant Acres Acres Acres Share 1-2 379 208 587 46.9% 1-1 201 65 266 21.3% MUC 105 4 109 8.7% RC 44 52 96 7.7% CMU 37 47 84 6.7% C 28 29 57 4.5% 0 25 7 32 2.5% GO 9 5 14 1.2% NC 3 2 5 0.4% Total 831 419 1,250 100.0% Source: City of Spokane Valley ECONorthwest Existing Conditions: Economic and Housing Trends 31 4.5 Development Trends 4.5.1 Residential Development • Overall, the number of housing units in Spokane Valley increased steadily from 2004 to 2015 when it reached approximately 40,600 total units. • However, the mix of housing units has shifted from 2004 to 2014; the share of mobile homes fell by half (four percent to two percent over the period) while multi -family units increased slightly and single family homes stayed consistent. • Over the last 10 years a majority (60 percent) of new single-family and multi -family housing units have been multi -family (two or more) units. • In the last five years, 76 percent of new single-family and multi -family housing units have been multi -family. Exhibit 26. Total housing units by type, Spokane Valley, 2004-2014 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 o°` o`' 0 ' o`%0 '° titi titi ti"� ti°` ti`' ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo Source: Washington Office of Financial Management, Housing Units by Type with Annexations Added, 2004-2014 Mobile Homes ID 2+ Units ■ 1 Unit • The housing stock in Spokane Valley is older with the majority of total housing units built before 1979. Only 14 percent of the City's total housing stock was built since 2000. • The majority of multi -family housing has been built since 1980. During this period it composed a larger share of total housing built accounting for 40 percent of new units. ECONorthwest Existing Conditions: Economic and Housing Trends 32 Exhibit 27. Housing Units by Type and Year Built, Spokane Valley, 2013 14,000 - 12,000 - 10,000 - 8,000 - 6,000 - 4,000 - 2,000 - 0 Mobile Homes 2+ Units ■ 1 Unit Built before Built 1960 to Built 1980 to Built 2000 or 1959 1979 1999 later Source: US Census ACS 5 year estimates, 2009-2013 Table B25127 ■ Apartment rental rates (not adjusted for inflation) in Spokane Valley have grown steadily at 3.5 percent per year from 2000 to 2015. ■ Starting in 2009, Spokane Valley rental rates surpassed Spokane County and have remained slightly higher ever since. ■ Vacancy rates have varied considerably, ranging between 4 and 13 percent during this period. ■ Since 2012 rents in Spokane Valley have increased sharply as vacancy rates reached a low of less than four percent. ■ Vacancies increased in Spokane Valley in 2014 to over seven percent and rent increases slowed during this period. ■ Regionally, vacancy rates are still at a 15 -year low. ECONorthwest Existing Conditions: Economic and Housing Trends 33 Exhibit 28. A $900 $800 $700 $600 $500 $400 $300 $200 $100 Average Unit Rent $0 Source: CoStar partment Rents and Vacancy Rates, Spokane Valley, 2000-2015 Spokane Valley Rent Countywide Rent Spokane Valley Vacanc -----Countywide Vacancy - 4% - 2% 11111,1,11 O,0 O,y O,� O,� ,9 O,h 0% • Multi -family development in Spokane County mainly consists of buildings built before 2004, especially in the urban core of Spokane and Spokane Valley. • Newer multi -family buildings tend to be over 150 units per complex and are concentrated on the outskirts of Spokane and Spokane Valley. ECONorthwest Existing Conditions: Economic and Housing Trends 34 Exhibit 29. Multi -family Development in the Spokane Valley Area, 2014 0 1 2mi I I I Source: CoStar. Spokane Multi -family Development Number of Units < 25 26-75 76-150 151-300 301-517 Built before 2004 Built between 2004 and 2014 u--_T�_-_ _ _ /' it 1 �•� Millwood ,r' �,J >— Liberty Lake -- Spokane I Valley Y I r"–+ 1-' r 5 L-: '7 Ir •- `-, i c_ 1 .s 1 ' ' ,...- --..,..,i ll1 4. ECONorthwest Existing Conditions: Economic and Housing Trends 35 4.5.2 Commercial and Industrial Development ■ Commercial and industrial development has not changed significantly from 2008 to 2015 in Spokane Valley. ■ Office space has experienced the greatest change, growing from 24 percent to 28 percent of total commercial space. Exhibit 30. Commercial and 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Source: CoStar Office Industrial Building Square Feet, Spokane Valley, 2008-2015 2008 2009 2010 2011 2012 2013 2014 2015 ■ Office ■ Industrial ® Retail ■ Vacancies in the City are relatively high, but have decreased from a high of 35 percent in 2009 to about 23 percent in 2015. ■ Office vacancy rates in the County were lower at just over 11 percent. Vacancy rates below 10 percent indicate that the existing supply is getting constrained and new supply may be needed. ■ Office rents in Spokane Valley and Spokane County decreased by almost two dollars per square foot per year from 2008 to 2015 and have yet to recover. ECONorthwest Existing Conditions: Economic and Housing Trends 36 Exhibit 31. Spokane Valley Office Rents and Vacancy Rates, 2008-2015 $20.00 40.0% $18.00 35.0% $16.00 _-- 30.0% $14.00 d • $12.00 25.0% $10.00 20.0% _ $8.00 15.0% $6.00 10.0% $4.00 Spokane Valley Rent -----Countywide Rent 5.0% $2.00 $0.00 1 0.0% Spokane Valley Vacancy ----- Countwide Vacancy 2008 2009 2010 2011 2012 2013 2014 2015 Source: CoStar • Similar to multi -family development, the majority of office development in the area was built before 2004. • More recent office development has tended to be over 50,000 square feet and concentrated in downtown Spokane or in Spokane Valley along Interstate -90. ECONorthwest Existing Conditions: Economic and Housing Trends 37 Exhibit 32. Office Development in the Spokane Valley Area, 2014 /-1- r --a. I • r; • 1 r''''f I • I--- •• 1 / / • 0 1 2mi I I I Source: CoStar I-- L_--._r-I I u"1 7 1 1___• _� -'' .5- \ Millwood / • I �,J I ei Spokane • .3• • • • , .0 • 1----- '-- Spokane • • Valley 1f 1 • r= t V-•7 f 'l 2 Office Development Rentable Building Area < 10,000 10,000 - 25,000 25,000 - 50,000 50,000 - 100,000 > 100,000 Built before 2004 • Built between 2004 and 2014 • I -r Liberty ake I * i 1 ` I. r\ - - ECONorthwest Existing Conditions: Economic and Housing Trends 38 Retail ■ Retail rents in Spokane Valley reached a high of $11 per square foot per year in 2010 before dropping below $8 per square foot in 2014. ■ Rents in the County followed a similar trend though they were consistently $2 to $3 higher per square foot. ■ Retail vacancy rates peaked in 2012 and have decreased since. By 2015 the City's retail vacancy rate was about 6 percent. ■ As vacancies have decreased, rental rates have begun to increase again in the last year. Exhibit 33. Spokane Valley Retail Rents and Vacancy Rates, 2008-2015 Avg Rent/SF/Yr $14.00 $12.00 - $10.00 - $8.00 - $6.00 - $4.00 - $2.00 - $0.00 Source: CoStar Spokane Valley Rent - ---- Countywide Rent Spokane Valley Vacancy - ---' Countwide Vacancy 12.0% - 10.0% - 8.0% - 6.0% - 4.0% - 2.0% 2008 2009 2010 2011 2012 2013 2014 2015 0.0% Vacancy Rate ■ The majority of retail development is along major corridors, especially developments before 2004. ■ More recent development is generally more dispersed, but tends to be concentrated along major roads and larger in scale. ECONorthwest Existing Conditions: Economic and Housing Trends 39 Exhibit 34. Retail Development in the Spokane Valley Area, 2014 1 • •r • • • • • • I -� Milwood's e ,• Retail Development Rentable Building Area < 10,000 10,000 - 25,000 25,000 - 50,000 50,000 - 100,000 > 100,000 • Built before 2004 • Built between 2004 and 2014 •• c•• •• .• �• Spokane • • alley. • !rr Lberty' Lake 1 • • • t • • 0 1 2mi I I I Source: CoStar ECONorthwest Existing Conditions: Economic and Housing Trends 40 Industrial • Spokane Valley and Spokane County industrial rents have decreased between 2008 and 2015. • Industrial vacancy rates in 2015 are less than half of their peak of almost 25 percent in 2010. Spokane County vacancy rates are far lower than those in Spokane Valley but are also far less volatile. Exhibit 35. Spokane Valley Industrial Rents and Vacancy Rates, 2008-2015 $ 6.00 $5.00 $4.00 $3.00- $2.00 - $1.00 - $0.00 Source: CoStar Avg Rent/SF/Yr Spokane Valley Rent -----Countywide Rent Spokane Valley Vacancy ry Countwide Vacancy ------------------- 2008 2009 2010 2011 2012 2013 2014 2015 25.0% 20.0% 5.0% 0.0% • New industrial development in the Spokane Valley area is largely concentrated east of Spokane City and on the outer edges of previous industrial sites. • Only 60,000 square feet of new industrial space has been built in Spokane Valley since 2008. • However, from 2004 to 2008, much of the new industrial development in the region was in Spokane Valley as shown in the map below. ECONorthwest Existing Conditions: Economic and Housing Trends 41 Exhibit 36. Industrial Development in the Spokane Valley Area, 2014 EP— r-- - i �- , 1 0 1 2 mi I I I Source: CoStar • Spokane', M i r+rwood. 1 l J Industrial) Development Rentable Building Area < 10,000 10,000 - 25,000 25,000 - 50,000 50,000 - 100,000 > 100,000 Built before 2004 • Built between 2004 and 2014 qrs ® 1 Li.ert' Lake Spokane Valley ECONorthwest Existing Conditions: Economic and Housing Trends 42 4.6 Pro Forma Analysis Summary The pro forma analysis provides an initial high-level financial feasibility assessment of redeveloping properties in Spokane Valley. The analysis used a static pro forma analysis to assess the financial feasibility. A static pro forma analyzes the costs of constructing a new building and the potential revenues the new building would generate in its first year. The analysis assumes that the building is sold in its first years and compares the total cost to construct with how much it would sell for in the current market. If the estimated sales price is high enough to cover the cost of construction, the developer's profit, and buying the property the project is considered feasible. This analysis subtracts the cost of construction and developer's profits from the estimated sales price to determine how much a developer would be willing to pay for the property (the residual land value). It is assumed the developer would keep 10% of the sales price as profit. Apartment in MF -1 Zone Building Program ■ The analysis assumed a hypothetical one acre parcel zoned MF -1. ■ Based on the zoning code, a developer could build 12 units (eight one -bedroom units and four two-bedroom units) on the parcel. ■ Parking requirements dictate a minimum of 14 parking spaces, which was assumed to be all surface parking. Financial Assumptions ■ Total cost of the project (excluding the cost of purchasing the property) would be $1.49 million, $136.65 on a per square foot basis. ■ The analysis assumed a one -bedroom unit rents for about $800 per month and a two- bedroom unit rents for about $1,000 per month. ■ Assuming a 7.0% capitalization rate, the total project would be valued at $1.30 million. ECONorthwest Existing Conditions: Economic and Housing Trends 43 Exhibit 37. Apartment Financial Performance Summary MF -1 Apartment Lot Size 43,560 Total Building Area 10,890 Floor Area Ratio 0.25 Units 12 Parking Spots 14 Fianacial Summary Total Per Unit Total Cost $1,488,123 $136.65 sf Building Cost $1,417,783 $130.19 sf Parking Costs $70,000 $5,000 space NOI $91,347 $9.81 sf Total Value $1,304,962 $119.83 Residual Land Value -$313,317 -$7.19 Source: ECONorthwest, RS Means, CoStar, City of Spokane Valley Total costs exceed projected value. As a result a developer's willingness to pay for this hypothetical property is negative, making the project financially unfeasible. Assuming construction costs were over 30 percent lower, a developer's willingness to pay for the hypothetical property would close to $95,000, which is getting close to being financially feasible in the current market. Exhibit 38. Apartment Financial Performance Summary, Lower Cost MF -1 Apartment Lot Size Total Building Area Floor Area Ratio Units Parking Spots 43,560 10,890 0.25 12 14 Fianacial Summary Total Per Unit Total Cost $1,080,597 $99.23 sf Building Cost $1,010,257 $92.77 sf Parking Costs $70,000 $5,000 space NOI $91,347 $9.81 sf Total Value $1,304,962 $119.83 Residual Land Value $94,208 $2.16 Source: ECONorthwest, RS Means, CoStar, City of Spokane Valley ECONorthwest Existing Conditions: Economic and Housing Trends 44 Mixed Use in the CMU Zone Building Program ■ The analysis assumed a hypothetical one acre parcel zoned CMU on Sprague Avenue. ■ Based on the zoning code, a developer could build 22 units (a mix of studios, one - bedroom, two-bedroom, and three-bedroom units) on the parcel. ■ The building footprint covers about half of the parcel. Ground level includes 14,000 square feet of retail, 4,600 square feet of common area, and 2,300 square feet of tuck - under parking. ■ Parking requirements dictate a minimum of 67 parking spaces, which was assumed to be mostly surface parking. ■ Open space accounts for about 5,000 square feet. Zoning dictates a minimum of 4,600 square feet or 210 square feet per unit. Financial Assumptions ■ Total cost of the project (excluding the cost of purchasing the property) would be $5.75 million. ■ Per square foot costs are higher given the higher cost of constructing a concrete podium for the first floor. ■ The analysis assumed a one -bedroom unit rents for about $800 per month and a two- bedroom unit rents for about $1,000 per month. ■ Assuming a 7.0% capitalization rate, the total project would be valued at $5.07 million. Exhibit 39. Mixed Use Financial Performance Summary CMU Mixed -Use Lot Size 43,560 Total Building Area 39,518 Floor Area Ratio 0.91 Units 22 Parking Spots 67 Fianacial Summary Total Per Unit Total Cost $5,748,023 $145.45 sf Building Cost $5,338,518 $135.09 sf Parking Costs $409,166 $6,153 space NOI $355,344 $11.25 sf Total Value $5,076,340 $128.46 Residual Land Value -$1,178,977 -$27.07 Source: ECONorthwest, RS Means, CoStar, City of Spokane Valley Total costs exceed projected value. As a result a developer's willingness to pay for this hypothetical property is negative, making the project financially unfeasible. ECONorthwest Existing Conditions: Economic and Housing Trends 45 Assuming rents are 25 percent higher, a developer's willingness to pay for the hypothetical property would be a little over $100,000, which is getting close to being financially feasible in the current market. Exhibit 40. Mixed Use Financial Performance Summary, Higher Rents CMU Mixed -Use Lot Size 43,560 Total Building Area 39,518 Floor Area Ratio 0.91 Units 22 Parking Spots 67 Fianacial Summary Total Per Unit Total Cost $5,748,023 $145.45 sf Building Cost $5,338,518 $135.09 sf Parking Costs $409,166 $6,153 space NOI $455,126 $14.41 sf Total Value $6,501,801 $164.53 Residual Land Value $103,938 $2.39 Source: ECONorthwest, RS Means, CoStar, City of Spokane Valley ECONorthwest Existing Conditions: Economic and Housing Trends 46 Submitted by: Fehr & Peers 1001 4th Avenue Suite 4120 Seattle, WA 98154 :Iwot. Prepared for DRAFT REPORT Transportation System Existing Conditions August 2015 Spokane .000 Val ley INTRODUCTION As Spokane Valley updates its Comprehensive Plan, an evaluation of existing conditions is being performed across a variety of topics from housing, to land use, to economic development. This document summarizes the existing state of the transportation system. This analysis is a required component of the Transportation Element of the Comprehensive Plan and identifies how the transportation network and the surrounding land uses influence the way people travel and how convenient that travel is for commuting, shopping, recreating, and other needs. Based on this analysis and an extensive public outreach component, challenges and opportunities for the transportation network are identified that will be addressed as part of the ongoing Comprehensive Plan update. LAND USES AND KEY DESTINATIONS Since incorporation in 2003, the City of Spokane Valley has grown significantly, with approximately 92,000 residents currently living in the Valley as compared to 76,800 in 2000. Spokane Valley also added a total of approximately 10,000 jobs between 2000 and 2014. Approximately 50,000 people work in Spokane Valley today, compared to under 40,000 in 2000. Figure 1 summarizes these trends. Despite its reputation as a bedroom community, Spokane Valley has a relatively high jobs -to -housing ratio, with about 1.3 jobs per household. This ratio is higher than the Countywide average of 1.1, indicating that the Valley is a regional jobs center. The places where people live, work, and play are impacted by how a city and surrounding communities guide where development occurs. The Land Use Element of this Comprehensive Plan provides the framework for future land use growth in Spokane Valley. Understanding how people currently travel to work is important to help accommodate the different modes of transportation in the future. The way people commute to work largely depends on where they live, where their job is located, and the transportation options available. Figure 2 and Figure 3 highlight the existing population and employment density in the Valley. As shown in Figure 2, population densities tend to be higher south of I-90 and Figure 1 Existing Spokane Valley Job and Population Growth Spokane Valley Job and Population Growth 100,000 80,000 60,000 40,000 20,000 2000 2002 2007 2011 2014 ilPopulation Ir,I Source: US Census Bureau, 2015 between Argonne and Sullivan Road. It should be noted that the areas north of I-90 and east of Sullivan Road have some areas with dense housing as well. The Census tracts in these areas are much larger, though, and include parcels of undeveloped land, leading to lower population density area -wide. Employment in the Valley is generally concentrated along I-90, the Spokane Business and Industrial Park, the industrial areas adjacent to Felts Airfield, and the Spokane Valley Mall, as displayed in Figure 3. The jobs in areas north of I-90 tend to be more industrial in nature while south of I-90 commercial and retail are more prevalent. It is important to consider the differences in the retail and industrial areas adjacent to I-90 as compared with where the majority of Valley residents live. The I-90 corridor and areas north of it support a high density of jobs but the residents predominantly live in the central and south parts of Spokane Valley. This separation of jobs, housing, and retail results in some traffic congestion around the I-90 interchanges and limits the viability of people walking and biking to work or shopping since people are generally uncomfortable walking or biking along busy streets. 2 P iH S okane ,000Valley Figure 2 Existing Population Density • i Fairview A.v 1 v cc 1 Irl No, AV o = Montgonien% Knox Av Manstleld-. Indian'' Population Density (Persons per Square Mile) 1,000 2,000 3,000 4,000 5,000 a 3rdAv i'Il r E 5th Av H,irrtn6'i01 Av cc cc A{ki Av Co Nle pN 1 I 9th At, 11th Av —T--1 rF 17th Av ! '• 4)1 J 4th Av 731 • gab i th f.41 �\ 1!a —--_�L� 5144th Av ( Av-1r • Liberty Lake 3 Figure 3 Existing Employment Density Spokane P tH S okane ,000Valley it #R; i 3111141111.111 -(4=-71..1 1. -,..ad my, pi gag mem <Sharp Av, NM=iii Kno77Mn Nora Av,_ ' 1s��■ s Lc �' ■A■���•■'i7 1� �u' 111■=1F�7o ll0 �� Ells= fr 1 IIL I =� Liberty Lake 2nd Av 1� 11111Psieriiiiiv ...-011101 II 2 3rd Av E 5th Av a, 3 I- 9th Av llthAv �■lml�im' ��° ne >—ma � 3 ValleywayAv ��J r �. Employment Density (Jobs per Square Mile) 250 500 1,000 2,000 3,000 ^I_r S ra uerAvwigt Av Iki Av, h Av 1 � I cc 1 ick fJ o ° 1 44thAv -a g, 1 ccrr^ 4e Av ./ 29th Av 31st Av 34th Av 22nd Av 25th Av -o 37th Av a; ay 11 ^t•, /1 4 P �H S okane 4,000Valley TRANSPORTATION NETWORK OVERVIEW Spokane Valley's street system carries a variety of transportation modes that move people and freight throughout the Valley and surrounding Spokane County. While driving a car is the primary way that people get around in Spokane Valley, the street network accommodates many modes of travel, including walking, bicycling, public transit, and freight. A gridded network provides improved connectivity for all forms of transportation, particularly walking and biking, by reducing the distance necessary to travel and providing alternative routes. In general, the roadway network in central and south Spokane Valley is composed of gridded streets, a reflection of the urban form typical during Spokane Valley's early development. Outside the central core, the network is primarily connected via principal and minor arterials, with large gaps between streets and many unconnected residential cul-de-sacs and loop roads. This layout of large blocks creates a less friendly environment for walking, bicycling, and public transit since it can greatly increase the distance between a home and a destination or transit stop. Based on 2011 data from the US Census Bureau's Longitudinal Employer - Household Dynamics (LEND) survey, about 38,800 people commute into Spokane Valley for work. Approximately 22,800 city residents commute out of the Valley for work, while about 13,800 residents stay in the Valley for work. These data are summarized in Figure 4. Figure 4 Commute How 13,771 22,759 In addition to collecting information on where Valley residents work, the Census Bureau also tracks how Spokane Valley residents travel to work—a statistic known as mode share. As shown in Figure 5, 80.4% of Spokane Valley residents drove to work alone while an additional 1o.7% carpooled. 3.1% of Spokane Valley workers rode transit to work. Of the remaining 5.8% of workers who reside in Spokane Valley, most worked from home while others walked, biked, took taxis, rode motorcycles, or used other means. These mode shares are typical for an auto - oriented suburban community. Figure 5 Commute Mode to Work Walk 1.1% Transit 3.1% carpool 10.7% Bike 0.44 o thl3 5 FUNCTIONAL CLASSIFICATION OF ROADWAYS Spokane .Valley Streets function as a network. The efficiency of a street network is dependent upon how the streets are able to complement each other to serve different trip types. Functional classification is the process by which streets and highways are grouped into classes, or systems, according to the character of service they are intended to provide. A proper balance of classes is necessary to effectively serve a mix of land uses and modes of travel. Spokane Valley currently classifies its roadways into principal arterials, minor arterials, collector arterials, and local streets, as shown in Table 1. Functional Classification of Roadways are displayed in Figure 6. Additionally, there are state and federal highways within the Valley. Examples of each roadway type and their major characteristics are described below. Table 1 Functional Classification of Roadways Roadway Description / Purpose Type Interstate/ Provide high speed, free flow travel between Highway regional destinations. Principal Arterial Minor Arterial Collectors Arterial Local Streets A roadway that serves through trips and connects Spokane Valley with the rest of the area. Minor arterial streets provide inter - neighborhood connections, transit access, and serve both local and through trips. Can accommodate pedestrian and bicycle travel if there are sidewalks and bike lanes/paths. Collectors distribute trips between local streets and arterials. Can be good for pedestrian and bicycle travel if there are sidewalks and bike lanes/paths. Local streets provide circulation and access within residential neighborhoods. Good for bicycle and pedestrian travel. I-90 E Trent Ave Pines Rd / SR 27 E Sprague Ave E Broadway Ave S Evergreen Rd E 16th Ave Vista Rd E 4th Ave E 24th Ave E Valleyway Ave Long Rd Figure 6 Roadway Network and Functional Classification j fiii n r -City of�� s. -Spokane-Valley =ri=� Ma IRMANS MIEVA 16016111. xr wii SRTC FEDERAL FUNCTIONAL CLASS! FICATION SPOKANE COUNTY, WASHINGTON CITY OFSPOKANE VALLEY /// Other Features Urban .Area 77nundary Wafer Features City of Spokane City grSpo7cane Vedleg Other dart dfeftonr aritla•constnzlionagcsosalNe ng e. lnk u 6 P ra S okane 4,000Valley EXISTING PEDESTRIAN FACILITIES Residents and visitors in Spokane Valley walk as part of their daily travel for many reasons. Children attending school, commuters taking the bus or connecting with a carpool to get to work, and senior citizens making midday trips all require safe pedestrian amenities. Sidewalks, crosswalks, curb ramps, and small curb radii are all key features in creating a safe and welcoming environment for people to walk. Buffers between sidewalks and lanes of traffic, such as landscaping or on -street parking, can also increase safety and comfort for pedestrians, particularly on arterial streets. Figure 7 shows examples of sidewalks and trails in Spokane Valley. Sidewalks are present on both sides of most principal and minor arterials in Spokane Valley as well as some collectors, as shown in Figure 8. The Valley has also prioritized providing sidewalks near schools, libraries, transit locations, and trailheads. While quiet residential streets may not require sidewalks for a safe pedestrian environment (with the exception of key routes to schools), some arterials lack sidewalk coverage, such as Mission Ave, 4th Ave, and Adams Rd. Plans for adding to the sidewalk network generally focus on filling existing gaps on arterials. In addition to sidewalks and crosswalks along streets, Spokane Valley also has paved shared -use paths for pedestrians and bicyclists. The Centennial Trail provides a dedicated east -west connection along a shared -use path. The trail is part of a regional connection through Spokane and to the Washington -Idaho state border. The new Appleway Trail provides an additional east -west corridor for pedestrians and bicyclists along the former Milwaukie Railroad right-of-way. The Valley is actively working on extending the Appleway Trail. Spokane Valley has also identified more opportunities for shared use paths along former and active rail lines. Typical of communities built in the post -World War II era, Spokane Valley has a well-developed grid of arterial streets spaced roughly a half -mile apart. While this system is efficient for vehicle travel, crossing major streets like Sprague Avenue or Pines Road can be difficult on foot or bike since signalized crosswalks are spread far apart. Additionally, crossings of I-90 and Trent Avenue are limited and are often located at busy interchanges or intersections. These gaps in safe crossing locations isolate areas of the Valley and lead to people driving for short trips that they could typically make on foot or via transit. Figure 7 Existing Pedestrian Facilities in Spokane Valley Nigh Y'9hility Cram -walk Raised Siderralk°.4ith Ctirb 7 Figure 8 Existing Pedestrian Facilities Spokane If 1 ■ 1; 2nd Av L I 1, 14thrAv -J P IH S okane . Valley j11* WW1&toNI � �� 11 I rh �ti Av cc a e,W4yl 1 I_ I 2t` pi -O 1 1 ` r o> M `eryv cc Nara A 1 --1 • a a c tiveIles IevAv Rich Av r Shap Av 1 a a cc �vrv, Fairview Av _.: N Mari +n _Indiana.Av a, v 3 I 1__I —, Spray ue'r7 7v 1 7th Av In 4th Av 1rd Av E 5th Av i- - I�m v 9 i- i'3th A'v 1 a 11th Av \ ...1 r J r-., 1 17th Av. 1 1 , ...... �1 it Sidewalks — Existing Sidewalks Pedestrian Facilities Existing Shared Use Path - Ped/Bike Bridge r •O Mission•Av Boone Av. Broad way,Av ValleywayAv Main-tw __1st Av 6th Av� Sth4 v iotl_AL L 7. 23/ Av "Spokanee Valley Boad•Rr-I E uc Iid'Avs 1 Flora Q a � � 0'1 - r! J c m Alki Av -y l . y � o liberty Lake 22nd Av 25th Av 27th Av 29th Av 31st Av 34th Av 37th Av a 21 t say m 1 24th/Av 26th Av 32nd&Av n\f- 8 EXISTING BICYCLE FACILITIES Spokane .Valley Similar to sidewalks, bicycle facilities are an important element in the transportation network that provide a safe and identifiable bicycling environment. Bicyclists in the City of Spokane Valley can utilize a variety of facilities, including shared -use paths, bike lanes, and bike friendly routes to reach their destination as shown in Figure 9. However, gaps in the network create a less safe environment in which cyclists must navigate through vehicle traffic or difficult arterial crossings to complete their journey. While the Valley has trails and bike lanes that form a spine of north -south and east -west connections, some of these facilities are not continuous and require bicyclists to merge in and out of traffic. The existing roadway geometry in many parts of Spokane Valley includes wide lanes, on -street parking, and a high number of driveways, which make many bicyclists feel uncomfortable riding in the street. Some corridors, such as Sprague Ave and Mission Ave, have striped bike lanes but also high vehicle speeds and volumes. PUBLIC TRANSIT Public transit, provided by Spokane Transit Authority (STA) via buses and vans, serves as a key component of the transportation network that connects residents with employment centers, public places, and regional destinations. Many Spokane Valley residents and employees use public transit for trips around and outside of the Valley. Figure io highlights the route and stop coverage of STA in Spokane Valley. Additionally, the map highlights the Pence -Cole Valley and Mirabeau Point transit centers and park -and -rides that provide links to the regional transit system. Spokane Transit Authority operates one frequent bus route between Downtown Spokane and Spokane Valley that runs every 15 minutes during weekday peak and day times. This route, number 9o, is the second busiest route that STA operates, with nearly 3,300 passengers on an average weekday. STA also has five basic routes serving Spokane Valley and providing connections to Spokane, Millwood, and Liberty Lake. Two express routes provide direct, high-speed connections between Downtown Spokane, the Valley Transit Center, and Mirabeau Point Park— and-Ride. These routes serve 7,000 riders per day during the week and cover most of Spokane Valley's major destinations, including the Mall, the University Shopping Center, the Valley Hospital Medical Center, the Argonne Village Shopping Center, the Spokane Industrial Park, and many area schools. 9 Figure 9 Existing Bicycle Facilities Spokane Spokane .Valley 2nd Av Sharp Av a a y CC u J � 1hPv 1 Fairview Av «QS Pv Hca a o N, 5 MontgomeryAv� Knox Av C x m CC aCC a CC a d a :. tm smo��g CC ON rt -O J 4th Av 11 a ro 1 �114thAv E c 3rd Av 5th Av I— ▪ 9th Av 11th Av ri \� 1 17th Av [—sl a Harringlan Av -+`Sprague Av 1 1 r w I — _ t O 1 1 Q Bicycle Facilities — Existing Bike Lane Existing Shared Use Path - Ped/Bike Bridge a a 9 7th Av CC • a ▪ `'1 „toad Av • Wellesley Av ( *__+.Manstiehd 1,ai MissionMv Boo neAv Broad way'Av Va l ieyway Av Main Av lskv 6th Av 8th Av 10th Av Spokane Valley c -6 o � � v 12th Av Euclid Av Akki Av C01el Av % c? Q % 2 23rd Av 117'-5.‘•2 � 27th Av —29thAv � P� 31st Ay 1 34th Av t S 37th Av 1 s 1 a ,l f' 1g I 1 v 3i44th�Av -o: 1 a fl LL 40' Avm 1 1 (tr 22nd Av 25th Av 26th Av 322nd.Av 1 al 271 21st Aa a a E v -a Q 6th+Avi�� 24th Av 1-- 1 T 10 P IH S okane 4,000Valley Figure 10 Existing Transit Facilities MMMIIM Spokane Sharp Av a a e � 6 w ✓ J o ,• Marietta A'✓ TeiLerid way, A, 1 Millwood I — y IBuc keye Avg I� Knox Av a a a Lea = c. v 1 7 v • .o . 64Y'o0 ,:l o s a CC m a 3 a 1 o Sprague:Av 3rd Av 5th Av lith Av —T --I ' 1 rJ `\ 1 1 � i 17th Av Transit Routes Bus Stop —0— Basic (32,66,94,96,97,98) Express (173,174) Frequent (34,90) ✓ 1 r^ Pence -Cole Valley Transit Center 13th Av 15th Av • 1 \ O • • Ea irview Av • Miss icft Av Boone Av Broadway An Va key way Av 6th Av 7th Av 10th Av • • • • s� Beoad Av Rich Av Mirabeau Point Park and Ride Nora Av Spokane Valley Man Av 12th Av z c � a • o 4 Euclid Av s rlora 0 a _ 1 nataldo Av aaaltr yP ' a I a,o,Y c 14.7re a; 22ndAv m =m 7 = °- 24th Av yr / v 2'th Av 26th Avr - — \kd n . 291h 00 3100 Av I 34th Av 1 1 + 37th Av I 1- 44th Av a 2I i t — .61°114,an Rd 4g�- Av m r+ 1 / Iq + 1 1111 Grcr to Alki Av CoN\evfv Liberty Lake 11 Spokane Walley GOODS MOVEMENT Freight and goods movement is a vital element of the transportation network. Everyone is directly impacted by how goods are delivered to distribution centers, stores, and homes. Spokane Valley is center to a high volume of freight movement owing to the Valley's major retail and industrial properties. Trucks move millions of tons of freight via I-90 and Trent Ave throughout the region and across the state. Several arterials in Spokane Valley also support high levels of freight, including Argonne Rd, and portions of Sprague Ave, Appleway Blvd, Sullivan Rd, Fancher Way, and Broadway Ave. These corridors are all rated at Ti or T2 based on the annual freight tonnage they support. Enough freight travels over many other arterials and some collectors to qualify them as T3 freight corridors. These classifications are based on the following amount of goods: • T -i: More than 10 million tons per year • T-2: 4 to 10 million tons per year • T-3: 300,000 to 4 million tons per year The Burlington Northern Santa Fe Railway (BNSF) and Union Pacific Railroad (UP) operate the primary rail lines within the City of Spokane Valley. Both companies have connections to the Washington -Idaho border while BNSF's route represents the company's main transcontinental line connecting the West Coast to Chicago and the Midwest. These rail lines help form the industrial corridor north of I-90 that supports many jobs in Spokane Valley, in addition to the UP line that runs north of Sprague and along Dishman-Mica Rd south through the City limits. Figure 11 displays the freight network. 12 Figure 11 Existing Freight Corridors Spokane Spokane �Valley Wellesley'Av— ._1--1 Btoad Av 1 1t/ �tieru✓aYl Av a J w I_ ° - v I 1-7T Montgome ry,Av KnoxAvr Millwood fairview AV Mansfield pv lndianaaAv Nora AV MiSs lon`AV 'o _-----------. •=07 Sharp Av l -a w�x�a r J o 1 2nd Av Boone Av B road warAv Vel leyway Av Main Av cc Euclid Av_ ty2 9- 9r, -. b aor a m ib flora - _ a 0_2_m °0'_ tataldo.Av � r Spokane Valley cc Alki Av x LL C 1eY Av 0 Liberty Lake a E 3rd Av i'1 N E 5th Av 1 i !:4_.'t''1 ci.- 9th Av 1 1 R 3. 11th Av 1 �I14thAv E 'r--1 ^/ J 1st Av t 7th Av cc 17th Av r"� Route Classification 3 T-1: > 10 million tons/year T-2: 4-10 million tons/year — T-3: 300,000-4 million tons/year Railroads n 1 12 l r Q 1 I ¢ `I „e 1- of 3 [ 44th Av 6th Av 10th Av c, 23rd Av 27th Av 29th 31st Av 22nd Av 25thAv 26thAv 32nd,Av 8th Av M a`o 12th Av 16th'Av d 34t Jay 37th1IAv 5, a 21st r - 24th Av 1S 3 I - - -�_ +� i9d �t 4th Av -o 13 Spokane .000 Val ley MOTOR VEHICLES Most Spokane Valley residents (about 90%) use motor vehicles as their primary mode of transportation to work. Moreover, many non-resident travelers pass through the Valley via I -9o, or park at the Pence -Cole Valley Transit Center or Mirabeau Point Park -and -Ride and take public transit into Spokane. Analysis of Spokane Valley's congestion for motorists is based on traffic counts collected in 2014. Each of the major roadways in Spokane Valley was evaluated based on its ability to accommodate PM peak hour demand with its existing width and lane configuration. Figure 12 displays annual average daily traffic counts. The corridors were scored into one of six level of service (LOS) categories based on the volume of traffic they support during the PM peak hour compared to typical volume thresholds for urban arterial roadways. Levels from LOS A to LOS F correspond to a range of completely uncongested to highly -congested conditions. Table 2 describes the LOS definitions laid out in Chapter 16 of the Highway Capacity Manual (HCM) (Transportation Research Board, 2010), which is the methodology applied to Spokane Valley's transportation network. Table 2 Level of Service Definitions Level of Service Description B D E F Free-flowing conditions. Stable operating conditions. Stable operating conditions, but individual motorists are affected by the interaction with other motorists. High density of motorists, but stable flow. Near -capacity operations, with speeds reduced to a low but uniform speed. Over capacity, with long delays. Source: 2010 Highway Capacity Manual. The LOS standards for the City of Spokane Valley are as follows: • LOS D for signalized intersections • LOS E for unsignalized intersections As highways of statewide significance (HSS), I -9o, Pines Rd (SR 27), and Trent Ave (SR 290) have LOS standards set by the Washington State Department of Transportation. The Valley's LOS standards do not apply to these state facilities. While the Valley's LOS standards are based on intersection operations, it is impractical to calculate intersection LOS for the hundreds of intersections around the City. Therefore, as is typical for many Comprehensive Plan Transportation Elements, LOS is summarized at the street -segment level. In general, the intersections along the street segments can be expected to operate at the same LOS as the segment. Figure 13 shows the calculated LOS on Spokane Valley's major streets during the PM peak hour. Spokane Valley's roadways generally operate with moderate congestion on some arterials during the PM peak hour. I-90 can be congested during the peak hour, and some motorists may choose to take city streets instead of I-90 to avoid congestion. This overflow can lead to congestion on roadways that serve interchanges, such as Argonne/Mullan Rd, Pines Rd (SR 27), Sprague Ave, Sullivan Rd, and Barker Rd. Except for these few instances of more severe congestion, most roadways operate within Spokane Valley's LOS standards. These congestion levels around the Valley are fairly common for suburban arterials during the PM peak hour. The delay will be disruptive for a brief portion of the day, but is also indicative of a well -used roadway network. Principal arterials that operate at LOS A through C during the peak period may be a sign of an overbuilt system, which can be costly for a community to construct and maintain. These large, underutilized streets also can be a deterrent for other modes because of high speeds, perceived safety concerns, and difficulty crossing. 14 Stiol ane 11 . Valley Spokane Walley® Figure 12 Annual Average Daily Traffic City of Spokane Valley All -Day Traffic Counts (By Year) arp 1000 Wellesley kiish I La. As 111 Euclid uc id Euclid _ ri sr- 3a00 memoir ;AM_...00G M ■+11 1 REjIiIlfi! amic1 ME= I.MN MEM I 101. 5]00 1 ! 0000 9. 10200 Enr ■ .11111 Ogpp trao5 l coo 1'teaoo aeatW,a -ffirMI EE5005 sq WAN VA o�t�li 1 ;000 October 31. 2914 Mansfield Indiana 000 CLs!1 J: � II EEL pool `e1 l'itrr It\ Nil gl tin LI 'mil Ali 700 000 Legend Year of Most Recent Count 2011 (2) 2012 (35) 2013 (130) 2014 (134) 15 Figure 13 Auto LOS Spokane PIH S okane ,0.0Valley r iN tk% dna Amu 'y I II r �t�umery a Knox Millwood M iM iss ion v � 3rd 8th 16th 4th G ▪ 8th Mission Broadway L a I U Appi way —1 r " 4th r— ` � 2, Y 1 L j a , r I r " � Level of Service A - C Q E s F w To v ,, 16th m L m 90 c weueslei y 1 02. 111 , I • 'trent Mansfield ISpokane Valley m 4th •n_ — 8th 24th 1 _ — 32nd s ' + 44th Thorpe — 1 --1 it 24th 25th 1 -`1 Euclid y 16th Sprague 11 24th Z7 Mission [11 Broadway8roadwa r y a�l 1 8th I - 44, Liberty Lake 16 Spokane .000 Val ley CHALLENGES AND OPPORTUNITIES In the spring of 2015, Spokane Valley hosted a series of public meetings to solicit feedback from the public on a variety of topics, including the performance of the transportation system. During this public feedback period, the project team collected considerable feedback on what parts of the transportation system is working well, transportation problems/concerns, and what the Valley's transportation future should look like. This feedback, combined with the results of the existing conditions analysis, highlights challenges and opportunities for the transportation system, as listed below. 'CHALLENGES • Many local/residential streets do not have curb, gutter, or sidewalks (a relic of development prior to Spokane Valley's incorporation). While some streets are low-volume and may not need these features, key access routes to schools, transit stops, and civic buildings could benefit from enhancements. • Long blocks and high traffic speeds can make it difficult to cross major streets like Sprague or Sullivan. This makes traveling by transit difficult, walking/biking to stores, or traveling to parks and schools difficult. • Transit service is minimal in parts of the Valley, requiring that people drive to reach their destinations. Several members of the public expressed a desire for more extensive transit coverage. • The region's position on a major freight rail corridor increases the risk of train collisions and delays caused by at -grade crossings. • Several members of the public identified the Valley's "streetscape," which includes landscaping, building frontages, medians, etc. as unattractive and lacking in character. Suggestions to improve the streetscape included more street trees, building frontage improvements/more private landscaping, and "gateway" features in medians and public spaces on the side of streets. • The public identified concerns over traffic congestion in some corridors, including Argonne, Pines, Sullivan, and Barker, particularly around the I-90 interchanges. OPPORTUNITIES • Compared to other cities in the region, residents highlighted the good state of repair with respect to street maintenance. This results in lower overall costs to reconstruct streets and more opportunities to invest in other city priorities. • Despite some traffic congestion around freeway interchanges, many residents consider the Valley's LOS policy to be working well — successfully balancing traffic congestion, access needs, and costs to build and maintain the system. • The city has a robust grid of major streets and can support a considerable amount of additional economic development. • Good connections to the national freeway and railway network which support economic development opportunities. • Spokane Valley has a strong pedestrian and bicycle plan and has been aggressively expanding the trail network by leveraging regional and federal funding. NEXT STEPS The next stage in updating the Transportation Element of the Comprehensive Plan involves forecasting future transportation network needs, defining updated goals and policies, and identifying a fiscally balanced long-term transportation project list. As we move forward, the challenges and opportunities identified above will serve as guideposts to ensure that we are addressing current concerns and leveraging existing assets. 17 Van Ness Feldman «P MEMORANDUM 719 Second Avenue, Suite 1150 Seattle, WA 98104-1728 206-623-9372 vnf.com TO: John Hohman, Community Development Director, City of Spokane Valley Lori Barlow, Senior Planner, City of Spokane Valley FROM: Consultant Team DATE: October 1, 2015 RE: Suggested Goal and Policy additions to Comprehensive Plan I. Introduction A Comprehensive Plan Audit was conducted for the City of Spokane Valley, which streamlined the existing Comprehensive Plan (Task #2.5 of the Phase 2 Scope of Work). Goals, policies, and other components of the Plan were identified to be removed, revised, or consolidated to improve the Plan's effectiveness. A related part of the audit is the identification of suggested potential goal and policy additions to each element. The suggested additions are meant to provide a starting point for developing new goal and policy language, to spur additional thought into new topics the City might like to focus on in the updated Comp Plan, and to add necessary goals and policies to bring the Plan into compliance with changes to the Growth Management Act (GMA) since the City's first Comprehensive Plan was adopted in 2006. As discussed with the City in June, the Comprehensive Plan Audit was also an opportunity to reorganize the Plan to improve readability and efficiency. The organization of this memo matches the reorganized Comprehensive Plan and reflects the consolidation of the Neighborhoods Element (into the Housing Element and Land Use Element) and the Bike and Pedestrian Element (into the Transportation Element). Additionally, the reorganized Plan now separates the goals and policies so that the City may set broader goals and include a greater variety of more specific policies without the undue burden of linking each policy with a discrete goal. The following section outlines suggested additions by element and then explains the reason for the suggested addition. Each table differentiates whether or not the suggested additions are partially addressed or not addressed at all in the audited Comprehensive Plan. Where a topic or issue is partially addressed, the existing goal or policy is referenced in the column titled, "Partially Addressed in CP Audit." Memorandum - 2 - October 1, 2015 Suggested Goal and Policy Additions Each suggested addition is accompanied by an explanation detailing why it is recommended to be included in the updated Plan. There are various reasons for the suggestions, including consistency with the GMA, consistency with Countywide Planning Policies (CPPs), relation to the public input themes developed through the public engagement process, best practices, or in some cases relation to implementing regulations, program, and/or tools, as identified by the City in the Audit documents. The information provided should assist the City in conducting further research on the suggestions. II. Suggested Additions by Element A. Land Use Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Electric Vehicle Infrastructure GMA requirement per RCW X 36.70A.695(2); need to add to dev regs Target vacant properties for infill GMA Goals 1 and 2, per RCW X Policy #16 36.70A.020 Consistency with CPPB GMA requirement, per RCW X Policy #41, 44 36.70A.210(1) and RCW 36.70A.100 Essential Public Facilities GMA requirement, RCW 36.70A.200; X existing CP outlines process, but has no goals or policies goals and policies in CP reference to regs in SVMC 19.90 Designate centers for higher density development GMA Goals 1 and 2, per RCW X 36.70A.020; Public Input Theme to "Create special places in the community." Also relates to implementing tool, STA Moving Forward – A plan for more and better transit services. Transit -oriented development/Transit- supportive development Best practices—align higher densities where there is existing transit; GMA Goal 1, per RCW 36.70A.020 X Policy #65 Memorandum Suggested Goal and Policy Additions -3- October 1, 2015 Flexible parking requirements Encourage more development in X Partially Addressed in CP Audit in targeted areas (reduction areas such as neighborhood X in parking requirements to commercial and/or mixed use zones GMA recommended in urban areas: WAC 365-196-430(2)(e)(vii). X support development) (NC and CMU, specifically); GMA Concurrency policy GMA requirement: RCW X Goal 5. per RCW 36.70A.020 36.70A.070(6)(a)(iii)(D). This is a required element to be included in the Comprehensive Plan, it is typically included in the Transportation Element, but could be in the Capital Facilities Element with a reference somewhere in the TE. Transportation Demand Management (TDM)/Commute Trip Reduction (CTR) strategies GMA requirement: RCW X Policy #29 Green building incentives Best practices—address impacts to the environment; GMA Goal 10, per RCW 36.70A.020 X B. Transportation Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Policy on reducing criteria pollutants from mobile sources GMA requirement: WAC 173-420- X Multimodal level of service GMA recommended in urban areas: WAC 365-196-430(2)(e)(vii). X Concurrency policy GMA requirement: RCW X 36.70A.070(6)(a)(iii)(D). This is a required element to be included in the Comprehensive Plan, it is typically included in the Transportation Element, but could be in the Capital Facilities Element with a reference somewhere in the TE. Transportation Demand Management (TDM)/Commute Trip Reduction (CTR) strategies GMA requirement: RCW X Policy #29 36.70A.070(6)(a)(vi); RCW 70.94.527. A description of TDM strategies does not have to be a policy and may be included somewhere else in the element. Parking policies are commonly included though. The CP Audit resulted in a recommendation to delete the original weak language policy. GMA requires a policy, which should have stronger language per our style Memorandum Suggested Goal and Policy Additions -4- October 1, 2015 C. Capital Facilities Element Suggested Addition guidelines. Not Addressed in CP Audit Partially Addressed in CP Audit Financing plan for six-year program is required, policies on financial sustainability recommended GMA recommendation: WAC X 365.196-430(2)(k)(iv). Recommend a new policy referencing financial sustainability and an emphasis on maintenance. Recommend a separate Financing Plan section of the Transportation Element. Intergovernmental coordination GMA requirement: RCW X Goal #9, Policy #29, Policy #33 36.70A.070(6)(a)(v). Safety policy — "Target/Vision Zero" Best practice; aligned with State transportation policy. Suggest policy language in addition to Goal 8. WSDOT Target Zero program linked here. X Goal #8 General approach to crosswalks Currently only called out in relation to major arterials, railroads, 1-90 and the Spokane River. X Policy #26 Greenways, bike boulevards, or other all ages and abilities facilities should be identified Best practice; Public Input Theme, "Improve connections and safety for other modes of travel." X Coordinate construction and maintenance efforts to prioritize pedestrian and bicycle facilities Best practice; Public Input Theme, "Improve connections and safety for other modes of travel." X Goal #9 C. Capital Facilities Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Timeframe for facilities to maintain concurrency— recommend that a goal be set Need to address timing X Memorandum Suggested Goal and Policy Additions -5- October 1, 2015 so that the City is not committed to an unfunded mandated Reason Not Addressed in CP Audit Partially Addressed in CP Audit Require sewer to meet Regional LOS standard Table 4.3 is not clear on this point, currently says, "Public sewer required for new development." Need to state that it will meet the minimum regional standard in the Countywide Planning Policies. X X Table 4.3 Reference six-year plan and financing plan in policies. GMA requirement: 36.70A.070(3)(d); This X X Land Use Element Policy #9 ensures that near-term needs are adequately funded. Ensure Land Use Element, Capital Facilities Element, and financing plan are coordinated and consistent. GMA requirement: 36.70A.070(3)(e), X could use CFP -2.4 from existing Comp Plan (CP version prior to audit) as a starting point. D. Housing Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Design standards (control massing, appearance, etc.) Improves quality, compatibility, and aesthetics of new development; could also consider targeting certain areas of the City; consistent with Public Input Theme, "Preservation of neighborhood character." X Clustering of Housing Increases housing options and preserves open space; consistent with Public Input Theme, "Housing affordability." X Land Use Element Policy #9 Policies specific to ADUs, Cottage housing, and other types of small-scale housing Increases housing options; consistent with Public Input Theme, "Evaluate different housing types as an option to X Memorandum Suggested Goal and Policy Additions -6- October 1, 2015 E. Utilities Element Suggested Addition single-family residential." and "Housing affordability." Not Addressed in CP Audit Partially Addressed in CP Audit Affordable housing incentives, such as authorizing and/or expanding financing tools to increase affordable housing supply Incentivizes new housing and the creation of below market affordable housing; Consider programs such as the Multi - Family Property Tax Exemption (MFTE) program or other regulatory or non -regulatory tools; consistent with CPPs: "...ensure that sufficient land and densities for affordable housing are provided in locations readily accessible to employment centers." Refer to RCW X 36.70A.540 for other ideas City -owned surplus land Incentivizes affordable housing development X Fair share of affordable housing Consistent with CPPs: "...incorporate the mandates of federal and state fair housing laws, particularly as they relate to siting and development of housing for special -needs populations." X Creation of a dedicated housing fund through either partnerships or through mitigation fees on new development, to fund affordable housing projects and/or programs Effective planning tool; consistent with Public Input Theme, "Housing affordability." X Goal #2 E. Utilities Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Efficient and equitable service delivery Best practices X Memorandum Suggested Goal and Policy Additions -7- October 1, 2015 Conservation/demand- management Best practices X Partially Addressed in CP Audit Coordinated construction within ROW Best practices X X Policy #2 F. Economic Development Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Regional infrastructure coordination Leverages limited resources and positions the City to realize opportunities, e.g. Regional stormwater facilities to incentivize infill development X Addressed in Infrastructure funding Supports growth with limited resources X Additional technology policies Improves City services and communication X Redevelopment (partnerships, incentives, PDA, etc.) Supports new investment X Small scale manufacturing Expands employment base and utilization for industrial land X Building relationships with brokers Increases capacity to understand market conditions and realize opportunities X Development and business incentives Supports new investment in City; could also be a strategy instead of a policy X G. Natural Environment Element Suggested Addition Reason Not Partially Addressed in Addressed in Memorandum Suggested Goal and Policy Additions -8- October 1, 2015 H. Parks and Recreation Element Suggested Addition Reason CP Audit CP Audit Designate and Protect Mineral Resource Lands GMA requirement: RCW36.70A.060 X and RCW 36.70A.131 Consistency with CPPs (Parks and Open Space Policy #3) H. Parks and Recreation Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Equitable distribution of parks and facilities Best practices X Require the development of parks and open space as a means to balance the impacts associated with higher density development Consistency with CPPs (Parks and Open Space Policy #3) X City Council Meeting Comprehensive Plan Update October 6, 2015 Overview 1. Comp Update 2. Policy Memo 2 CARS Annual Amendments ;,_ Population Allocation 6. Existing Conditions Reports 7. Mineral Resource Lands Analysis What has staff been doing? Working on Draft Chapters co.•a.sAND POLIC SPOKANE VALLEY COMPREHENSIVE PLAN mp tse.Yh mtl3b44s GaAs h. Crum Me*IVpmp Om acln QPingenfalnw0rtrtwatl3 2 1 ax[Iplw. comn.rciamd414 nal anhmn Maruueas inl a n221, W m acvraila fel n4lhalsrth r mmmwq'lhawsl nd non McMM l 1#nlify 3110 pfolase amhaeMrdantl ni%aeicariee asa Aumottnn Mr gro.0 by4C�m�litring W6eAaElJf no ionAreu lhae leoo11euernl+�ilh {heSp.law.CopnlYmpiw%m4an in.th 1. NMf4arrarr 5 R.lamand probe{ ptttlnrx fnandgiahlpol Me 9Bp551l Vats. nnitlenishollintanme. 6 434.1*h...en sit,derc r155Irl *ilh majp Irana corridors .n0 niarlun.il cenkn Io mw.x 1.113441543n01nl MNINs pMnlrian ewn.lrlell 1 %...5a lrprld aamnolrlww .3 Oh la ...ow. arae dcalrrtuer unc.rm wo§sbemxm may 2 ttnnlern OtTtrvalavl irs mrslartrims eKtreera,d arm.. 5 Er..Wr594ro.praw le mum al rm414xm. Feantlmrmy arrel.Ingtwmpns Wa n woad sees ..q.pataloa1hm41Rr. dewlesrvdas W... ihn 5 C utl mama awry elampeYflaramw nearay mow an.tr ea ma 555 hwne=ywa d.A3mec llc...3armma }nw erwnrpinnrg1/1.1111411411431.11M6dxe.•rya tri 41.. .rymlvrs N pn P4"eV 5 rrow. b me... Nu& ely.euaa diel. . mak. ...4..13.am ar! mC.n9 tleaelapr.rs Developed Table of Contents Goals and Policies Supporting Chapters with Inventories and Analysis These chapters • Land Use p are not • Utilities population • Environment dependent • Parks • Capital Facilities/Services • Transportation • Housing • Economic Development Goal o• 206.62 nt /7 vvvIess a� pmeo kDne Cot\Bat\ow•SeoPeec,City of5pVa\\eY ohoNohma,or\xQeve\o Con�u\taetl cam teherstve p\an FpDA E' S�pteober�Go2Dao poGcYadd\t�anst°Comp RE. 5uggeste commendations o\ Spokane V a\\eV "S g • - - additions are meant to provide a starting point for developing new goal and policy language, to spur additional thought into new topics the City might like to focus on in the updated Comp Plan, and to add necessary goals and policies to bring the Plan into compliance with changes to GMA..." Suaaested Additions by Element A. Land Use Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Electric Vehicle Infrastructure GMA requirement per RCW X 36.70A.695(2); need to add to dev reg„s Targetvacant propertiesfor infill GMA Goals 1 and 2, per RCW X Policy #16 36.70A.020 D. Housing Element Suggested Addition Reason Not Addressed in CP Audit Partially Addressed in CP Audit Design standards (control massing, appearance, etc.} Improves quality, compatibility, and aesthetics of new development; could also consider targeting certain areas of the City; consistent with Public Input Theme, "Preservation of neighborhood character." X Clustering of Housing Increases housing options and preserves open space; consistent with Public Input Theme, "Housing affordability.' X Land Use Element Policy #9 CAR Analys r Purpose and Process tool to get input from the public on potential updates information used through the update process to develop proposed text and map amendments to bring forward to the public, PC and Council no individual action on each (/ of these requests Continuing Analysis Information informs the draft land use mapping for accommodating growth Staff Conducted Further Analysis Based on Criteria i?:134t7NfC Complete Analysis tied to Population Allocation and resulting decisions 2016 Annual Comprehensive Plan Amerdment Process Process GMA — allows amendments no more than once each year SVMC 17.80.140 identifies applications may be accepted through November 1, 2015 • Notice published Aug. 2015 No applications received to date Amendment Type and Initiation: Map or Text • Map amendments are typically site specific land use changes Amendments may be: • Privately initiated or City initiated Council cons�'�der h�- implications of any privately initiated request in conjunction with the update at the time the ocket is reviewed. Population Allocation Authority to Plan RCW 36.70A.130: The "comprehensive land use plan and development regulations shall be subject to continuing review and evaluation by the county or city that adopted them": Annual update process allowed —but only once per year (with some exceptions) Periodic update required IVFelandman Ness Population Allocation The Growth Management Act - Prevent Sprawl: Designate Urban Growth Areas "UGAs" for "Urban Growth" Urban/Rural densities UGA Boundaries are based on population projections from OFM • Discretion to choose low, medium, or high range IVanldmaNessn Fe Population Allocation RCW 36.70A.130: The update "shall include... an analysis of the population allocated to a city or county from the most recent ten- year population forecast by the office of financial management." County "shall" review: • UGA boundaries • Densities permitted within incorporated and unincorporated portions of each UGA. ci Each city "shall" review: • Densities permitted within its boundaries Cities and County "shall" accommodate the urban growth projected to occur for the succeeding twenty-year period. IVan Ness Feldman Population Allocation Spokane County Process (CWPPs): OFM population projections County Commissioners initiate UGA and population allocation review process 3. The Steering Committee of Elected Officials (SCEO) reviews population allocation recommendations by the Planning Technical Advisory Committee (PTAC) The SCEO forwards recommendation to Board of County Commissioners (BOCC) BOCC adopts population allocation for County and local jurisdictions jVan Ness Feldman „ PTAC Recommendation a The forecast/allocation is a required component for the development of GMA comprehensive plans and provides population projections for a 20 year time frame (2017-2037) This forecast provides guidance to cities and the county for comprehensive land use and capital facilities planning IVan Ness Feldman Countywide Planning Policies Mandated Review of County -wide UGA 16. The Urban Growth Area boundaries shall be reviewed to accommodate the succeeding twenty years of projected growth, as requireciloy RCW 36. 130. The County Cemmissioners shall initiate the review process approximately three years prior to the required revie' deadline. This process shall re-evaluate populati a . _ - • .. uantit anal sis ansLuriaan ice delivery. Any jurisdiction throug its representative on the Steering Committee of Elected Officials may request that the Board of County Commissioners initiate a review of the Urban Growth Area boundaries prior to the scheduled time. PTAC Meetings The process has resulted in good discussion with all participating jurisdictions. The result has been the contemplation of several population forecasts. 2017 fti crate luriscNctior r Spokane Valley 2017 estimate 237 population 95,770 114,354 2037 population plus 123% S1TC 2040 population 116,688 109,626 SRTC 2040 weljusted to 2037 107,641 Change in p'Dpu I atiOn 2017-2037 medium ofm 2037 population estimate Change in rredium ofrrl 2037 population estimate papulation 2017- Gfm - high 2037 -high drift drift Change in population 2012-2037 - I ow drift 2037 papulation estimate ofm - low drift Jurisdiction 55,772 1E, 521 114,253 15,345 115,617 15,357 112,155 Spoken eValley 2017 Esti matte Change in papulation 2017-2037 medium ofm 95,264 14,65-0 2037 papulation est i matte rnedi urn ofrrr 109,913 2037 population Change in estimate population 2017- ofm - high 2037 -high drift drift 15,6'577 1113,960 2037 Change in population population estimate 2017-2037- ofm - low low drift drift Jurisdiction 12,970 1138r2 SpakaneVaIley PTAC U pdat@ (Planning Technical Advisory Committee) a 6 meetings between March 19 and October 1 • Research and develop population forecasts for Spokane County • 3 forecasts considered with variable numbers for SV a PTAC Recommendation is OFM 2037 medium forecast • Recommendation includes minimum and maximum drift options for consideration Analysis - Compared OFM forecasts to actual growth 510,000 500,000 440,000 480,000 470,000 460,000 450,000 440,000 430,000 420,000 410,000 400,000 ■ Actual 1.02 1.02 ■ 2002 OF M Actual 1.00 • 2007 OF M ■2012 OFM Actual 0.99 0.99 1.01 Actual 2005 2010 Projection Year 2015 PTAC Update a The analysis revealed that OFM has been accurate in past forecasts within a range of 98.3% to 101% of actual population observed. 2017 County population estimate is 499,348 Range of most likely Population Outcomes for Spokane County 2037 Forecast at Maximum Range (101.0%) 589,418 Forecast at OFM Medium 583,409 . Forecast at Minimum Range (98.3%) 573,770 How does the population get distribilted? Analysis looks at growth rate by area, and distributes the population by actual growth rates. 33% of the population forecasted are expected to move into incorporated areas. Population Forecast Distribution by Spokane County Area Unincorporated County Unincorporated UGA Unincorporated Rural UGA Incorporated Spokane County Distributing the population to the cities Analysis looks at actual growth rate for each city as a share of the County growth and distributes the population accordingly. Spokane Valley is forecasted to increase by 14,650 persons according to the OFM medium forecast. Jurisdiction Airway Heights Cheney Deer Park Fairfield Latah Liberty Lake Medical Lake Millwood Rockford Spangle Spokane Spokane Valley Waverly 2037 Population Forecast Minimum drift 98.3 13,698 14,438 5,185 656 195 15,206 5,931 1,932 470 287 234,306 108,233 108 2037 Population Estimate Medium OFM 14,298 14,776 5,325 660 195 15,909 6,042 1,947 470 288 236,698 109,913 108 2037 Population Forecast Maximum Drift 101.0 % 14,671 14,986 5,412 663 195 16,348 6,111 1,958 470 288 238,189 110,E 108 PTAC Next Steps Meeting Scheduled for Oct. 1, 2015 —finalize Recommendation Report Schedule SCEO Public Hearing (Steering Committee of Elected Officials) • Attempting to schedule — last known date Nov. 4 Forward SCEO Recommendation to BOCC • Date yet tbd IVan Ness Feldman Existing Conditions Reports submardbp EHR'k'PEERS Fehr& Pers 100! 4th Avenue Swire 4120 Seams, WA 98154 DRAFT REPORT Transportation System Existing Conditions August 2015 Existing Conditions Housing And Economic Trends Population /Demographic Trends Steady population growth — 1% annually City has higher % of persons over age 65 than County and older median age (39.8 vs. 37.2) Less City residents have higher education levels than County (21 % vs 28%) Lower median household income than County ($48,000 vs. $49,200) Conclus Housing Trends Modest housing growth - 1% annually Characteristics changing • More Multi -family built than single family, • # of renters is increasing • Avg. household size is decreasing, • % of households with children is decreasing 35% of all households pay more than 30% of income for housing ion: City's older population is influencing the trends Existing Conditions Housing And Economic Trends Economic Trends Existing Land Uses Service -based economy providing commercial, professional, and retail services City economy has been slow to recover Regional Commercial and Corridor Mixed Use zones realized the largest decrease in sales during the recession Half of the land base used for single family housing is typical of a suburban community. Single Family General Commercial Vacant Land Industrial Multi -family Exempt/Utility Development Trends - The Significant Changes Since Recession Residential Development Trends Increase in Multi -family Housing construction to meet demand - Vacancy Rate Low • Most MF construction located in MUC and CMU zones; • Only 1 project in MF -1 zone • No MF projects on Sprague Generally indicates the demand for housing types is changing Commercial Development Trends Retail Sales recently recovered to pre -recession levels Demand for Commercial properties is weak • Office space vacancy rate is over 20% • Retail vacancy rate is improving —from 10% in 2012 to 6% presently Indicates an oversupply of office space Buildable Residential Land Buildable Acres By Zone Net Buildable Unit Zone Acres Capacity R-3 653 3.787 R-4 151 1.101 Iv F-'2 51 1,129 r}'F-1 87 Y5 M; . 165 1.017 R-2 1!='i = 402 (rm1. 1 4 651 R-1 15 32 Total 1.297 9.076 1% Almost 70% of buildable residential land is zoned single family; 1 10/0 Multi family and 19% Mixed Use. This does not consider land size or distribution for ease of aggregation. R-3 R-4 MF -2 MF -1 MUC R-2 CMU R-1 Buildable Commercial and Industrial 1 .and Net Net Underutilized Net Bwiklable Zone Vacant Acres Acres Share 1-2 379 208 587 46.9 % 1-1 201 65 266 21.3% Mt1C 105 4 109 8.7 RC 44 52 96 7.7 CMIIJ 37 47 84 6.7 C 28 29 57 4.5 0 25 7 32 2.5'4 GO 9 5 14 1.2 NC 3 2 5 0.4'4 Total 831 419 I1.250 100.0% 3� Acres 3%1 0 1f noz 4/o 1-2 7% 1-1 MUC 47% RC CMU C 0 21% GO NC Spokane Valley currently lacks small scale, neighborhood oriented commercial areas within walking distance to many of the residential areas. Development Trends - The Significant Changes Since Recession Industrial Development Trends Limited new industrial development Vacancies have decreased from 20% to less than 10% Indicates at some point new space may need to be developed Focused Analysis of Zoning Issues Medium Density Residential Zoning What's the Problem? The MF -1 zone has not had Multifamily development since 2012 • 1 permit in zone since 2012 for MF; almost 300 units built per year in other zones City has heard MF projects are not feasible in this zone Conclusions Pro -forma Analysis Conclusions • Density limit is too low to make development feasible at current rent levels and development costs Policy Considerations • MF tax exemptions for medium density housing types • Allow other housing types that are less expensive to construct • Adjust setbacks, lot width, development standards, etc. Focused Analysis of Zoning Issues Mixed Use Zoning —Can It Work in the CMU zones? What's the Problem? Conclusions The Corridor Mixed Use (CMU) zone has not realized adequate levels of new development along Sprague and Trent. Mixed Use is typically a vertical development with MF units on upper story and retail on the ground floor. Pro -forma Analysis Conclusions • Lack of redevelopment is due to project economies - anticipated rents do not support vertical development • not an issue with zone regulations • Trent more affected than Sprague due to lower land values, proximity to industrial uses and railroad tracks, and distance from 1-90 - Not as competitive relative to other locations. Policy Considerations • MF tax exemptions • Consider adjustments to setbacks, open space standards, parking standards Focused Analysis of 7oning Issues Office Zoning — Why isn't Officei?nd Garden Office Developing? What's the Problem? Recent office development is happening outside of the City's two office zones around 1-90 and in the M UC Zone • • Areas with good visibility and large vacant bracts O and GO zones have seen little office development since 2004 • Zones concentrated along Argonne, P netfdt;' Evergreen Corridors • Zones have a mixture of uses (retail and single family) • Parcel sizes less than .75 acres (hard to assemble for sizable new development) ,i Mill aa�d Spokane se • Valle} _ 1 __ Pr Office Development Reaka tie Building Area < 10,000 10,000 - 25,000 25,000 -150,000 50,000 - 100,000 > 100,000 Built before 2004 • Bunt between 2004 and 2014 Focused Analysis of zoning Issues Office Zoning —Why isn't Office and Garden Office Developing? What's the Problem? Typical small office building since 2004 had at least 20,000 sq. ft. and parking; This translates to minimum development site around 35,000 sq. ft. or more for new office project. The 0 and GO zones only have a few adequate sized sites (vacant or redevelopable) Conclusions Policy Considerations • MUC and other areas close to 1-90 better suited to Office development • Medical office uses may see a demand linked to aging population • Vacant areas in 0 and GO are along major corridors with good transit and suitable for MF • Consider more opportunity for residential uses • Consider Rezones accordingly Focused Analysis of Zoning Issue. Neighborhood Commercial Zoning retail uses in neighborhoods? What's the Problem? The City lacks small- scale neighborhood - oriented commercial areas within walking distance of residential neighborhoods • Many comments received Small/Local business support a vibrant retail market and creates community character Can we develop small scale Conclusions Pro -forma Analysis Conclusions • Limited vacant sites at major intersections to support small scale retail development • Residential areas surrounding sites are low density — not enough population to support retail • Pro -forma analysis indicated vertical mixed-use not feasible Policy Considerations • Rezone vacant parcels NC • Rezone intersections as NC for redevelopment • Review parking requirements for NC uses • Consider Rezones Accordingly Submr.ic FEHR t' PEERS Fehr &Peers 1001 4th Avenue Suite 4170 Seattle, WA 98154 Transportation System Existing Conditions August 2015 Switching Gears 'xisting Conditions - Transportation System Land Uses and Key Destinations Places where people live, work, and play are impacted by how a city guides where development occurs. 0 Land Use Element provides the framework for future land use growth in Spokane Valley. Understanding how people travel to work is important to accommodate the different future modes of transportation . The way people commute to work largely depends on where they live, where their job is located, and the transportation options available. Population Density • Population densities tend to be higher south of 1-90 between Argonne and Sullivan Road. • The separation of jobs, housing, and retail results in some traffic congestion around the 1-90 interchanges • Limits the viability of people walking and biking to work or shopping since people are generally uncomfortable walking or biking along busy streets. S3SRad = - Population Density (Persons per Square Mile) 1,000 Z000 3,004 4,000 MI 5.004 q JE 1 1. Millwh od ti se --. IIPtuY.7Y �- - reauQrth of I-90 and east of Sulliva Road also hal as vyith dense Opining. Censu is in `these areas are larfer and include parcels of undeveloped land, leading to lower population density area -wide. Existing Conditions - Commute Characteristics Daily Commute Flow 38,800 people commute into Spokane Valley for work. 22,800 city residents commute out of the Valley for work; 13,800 residents stay in the Valley for work Commute Mode to Work Walk 1.1% Transit 3.1% Carpool 10.7% - Bike Source 2011 US Census Bureau's Longitudinal Employer -Household Dynamics (LEND) survey Other Items Considered Pedestrian Facilities Bicycle Facilities Public Transit Facilities Goods Movement and Freight Corridors Motor Vehicles - Traffic Counts & LOS r fcn9 Millwood i M or 1 E y + _' 4r •• • Levu of Service A - C a E F { i11Sx1G'I'. IE.J'. ISpokane I4 Walley --1 E xI 1 1 u(ai6 1 Existing Conditions Challenges Opportunities Many residential streets do not have curb, gutter, or sidewalks — could benefit from enhancements Long blocks and high traffic speeds make it difficult to cross major streets — impedes transit use, walking/biking, etc. Transit service is minimal in parts of the Valley, requiring that people drive to reach destination The regions position on major freight rail corridor increase risk of train delays caused by at -grade - crossings Unattractive streetscape, lack of gateway features, and public spaces on side of streets Streets in good repair — allow opportunities to invest in other city priorities Good Traffic Level of Service Grid system can support a considerable amount of additional economic development Good connections to freeway and railway network support economic development opportunities Strong pedestrian/bicycle plan that is expanding the trail network with regional and federal funding. Mineral Resource Lands Ongoing Analysis: Consulted with DNR • Conducted a review of available Subsurface data and geologic maps Consulted USGS Consulted with WSDOT Reviewed other Regulations from other jurisdictions Next Steps Next phase will involve City staff and Consultant team Synthesize work completed by staff, population projections, existing conditions reports, analysis of CAR's Complete work items dependent on population allocation number • Update Land Use, Housing, Transportation, and Economic Development Develop Draft and Conduct Environmental Review uoitetuasald tuiodJamod :SINAIITHDV.L.LV STAFF CONTACT: Lori Barlow, Senior Planner; Christina Janssen, Planner V/N :NOIIDV 1:1111NAIAiIAiODall V/N :SNOLLd0 pauueid ail uo V/N :NINVI MOILW SIlOIAd21d V/N NOI.Lv'ISIOf'I OMIN1111AO0 AGENDA ITEM TITLE: Painted Hills Planned Residential Development -Project Overview :Xiddu wimp vain SIoZ `9 J393130 Department Director Approval: Request for Council Action Aa T'IVA INV)IOdS 40 AID Painted Hills Planned Residential Development Spokane lhal ley COMMUNITY DEVELOPMENT NN. G Div1SI N History • Prior to 1985: the property was zoned Agricultural and was designated as Urban in the Spokane County Future Land Use plan. • November 1985: a Conditional Use Permit was approved to operate a 9 hole golf course. • 1989: Golf course is opened to the public. • January 1, 1991 -Property is rezoned by Spokane County to UR -3.5 • October 28, 2007: With the adoption of the City of Spokane Valley Zoning Regulations, the property is re -zoned Single -Family Residential district (R-3) • August 2012: Golf Course files for bankruptcy. • October 2013: Property obtained by Black Realty, Inc. • July 24, 2015: Application is submitted for a 580 unit Planned Residential Development. SP' okane Val ley COMMUNITY DEVELOPMENT !NEG DIVISION 41111”"mr-r Current Zoning Z R-1 R-2 R-3 -- R-4 MF -1 MF -2 433 0 CMU MUC NC • RC • I-1 • I-2 • P105 01,1„,1',1„1 .\V:. 2. 9125 3LtIi Ave 513-0KAN'E VALLEY 453349060 , !I .41 tt 7. ?q.:* U-6 453369191 11-3 0 pi 43r 1-• 0 44041.9048 44041 .9144 45343 9099 0 , -------- i S 45343.9093 \-...,. o -----=:9. i: 45343.9094 c 11_-------- th-M, tr. 45343.9085 wi --- 17,-' 45343.9086 `,1 45343.9143 c0 45.343 9033 44041.9093 45343.9059 45343.9058 t4 4 Painted Hills today NN NG DIVISION Painted Hills today Spokane lhal ley COMMUNITY DEVELOPMENT NN NG DIVISION LIS E.'R ETAFL 1 3 AC Spokane ��dlley COMMUNITY DEVELOPMENT ,NN1 G DIVISION A Planned Residential Development (PRD) SVMC 19.50 • PRD's are allowed in all residential zoning districts • Residential developments of all types are allowed in PRD's • Uses allowed in the Neighborhood Commercial zone are allowed in PRD's • PRD's allow greater flexibility when applying zoning regulations • The underlying zoning regulations dictate the density of a PRD • The Hearing Examiner makes the final decision on all PRD's Spokane lhdl ley COMMUNITY DEVELOPMENT ►NN -:: NG DIVISION Process 5 gcon 0 Iardes gn SEBA check! Q CU 0 FlOadP1 FEMA Tr cImpact Analysis SEPA Deci ion bowed bL FIZ 0 w 0 z Std' Report bowed ued t w IDL Appeal Period Begins Today Ke I City of Spokane Valley WWW ► Report a Problem ► CenterPlace ► City Council ► City Manager ■ City Ball Project ■ Council Agenda ► Economic Development • Eruploymenl ► Municipal Code Maps ► Parks/Pools/Rec ► Permit Center Planning & Zoning Solid Waste Proposed City Hall Design Opparlunity far Pu b! is Co m me et: TwesElay, Sep -29, 2815, 6:00 p.m. City Ball Counx1 Chambers 1.1707 C. Sanaa* Avenue City News Agenda 000 Solid Waste Sulilv<in Bridge Watch these testimonials about how Spokane Valley is helping busine silrreed Painted Hills Manned Residential Development "A community of opportunity where individuals and families can grow and play, and busincascs will flourish and prosper." c September2015 Sun Mon Tue Wed Thu 1 2 3 6 7 8 6 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 Fn sat 4 E 11 1e 18 13 25 26 1111 SVTV Web Channel Public Notices Bids/RFPs/RFQs j n Hot Topics Community on 1 Newsletter ontact IIs 'rued i �sllsinfo Spokane COMMUNITY DEVELOPMENT P NN NG DIVISION Spiikane inn Nib] ley • CdyHomaa ■ Codes and 8tamdacree • CompmaraWsa Wan IIpaota Icanahninotaau llitaginucaing ► Fozm ■ IgE P Long Esusga Ramming M Fasmit Cnyax It Flaming and Zoning F Pluming Cm®dssiom ► Hntldleg inspoetioas ► Com®aettpand Mamie h Coda Enfor .road h nhaota[p FAO. msuddpat Cada PUCdeI9M162 e Follow Ur. 111 ■ si :dints wesitaa Painted Hills Planned Residential Development The nay asf Spakane Vance has -toe-teed an application far a Planned Residential Developnxrrt (PPD} looted at 444135. ❑ishrnan Mica Pd. The site was formerly the Painted Hits Golf Course. The proposal includes 580 dwelling units comprised of 3C0 single family Nacres and 2E4 multifamily units. neighborhood commercial space suithk For small scale retail. office and other neighborhood services, and 3D awes of dedicated open space. The application forthr PRD was submitted and deemed complete before heirg disrriruted to al Cele staff and other agencies with jurisdletan for review. Additions Il,. a lire_eatto thesfte. hw tis -e,ie'a public hearing w . __ __ 6aminer. At this time, no date has t Spokane Valley Municipal Cade 17.80 PRO'z. 'Notice -of Application was mailed to all property owners . - ..e .application materials are being reviewed. Following -_u ed in front &the Spokane Valley Hearing -_r established for the public hearing. Pursuant to =ce, the Heating Emaminer makes the Final derision or al Process At A Glance E El uLJL-: _.se tl 2 Ilnks belim to Mer the applIcaeon 4ocurn2lis and other materfas .elated to thl5 development. Pre-A4plicatiort , Pre -Applicator Conference Form , Pre --Applicator' Meelinp Worksheet Annliratirin ▪ Subdivision Application i I' native . Geahazard Evaluation Dialap®cal Evaluetican, Duffer Averap into, and 1 lebitel Menepernertt r'len . Sewer Cortcurreney i 'Nater Concurrency . Certif-icate of Water Aitaiateltv . Cer1lfcare of Sewer Avahahlllwy . Traffic Impact Analysis • T rafft3 Technical Appendix pt. 1 . Traffte.Technical Appendix pt.2 , Planned Reside natal Development Application Staff Report & Decisions ▪ Determination of Completeness , Determination of Inconfpleteness Agency Comments ▪ Centrat Valley S chcd Debit t ▪ Departrnent of Eccto-by - Spokane Triba of Indianc , Spokane County Utilities ▪ A.vi5ta Notification Documents ▪ Nvi iue of Apeliu.nion ▪ Title Company Cedification ▪ Affidavit of Publication , Lena! Notice of Application SEPA • CYecklist • ._ 'siive Spokane lhdl ley COMMUNITY DEVELOPMENT ►NN -:: NG DIVISION Public Comments Spokan e,� Painted Hills Planned Residential Development Thank you for submitting comments on the Painted Hills PRD. Your participation is an important part of the process. Your comments have been added to the public record which will be forwarded to the Spokane Valley Hearing Examiner for review prior to the public hearing. At this time, a date has not been established for the public hearing. The Painted Hills project is a 303 lot subdivision with a Planned Residential Development overlay and does not include any rezoning of the property. For the most recent information on this project and to View materials related to the development please visit: www.spokanevalley.org.. paintedhillsinfo Meeting Date: CITY OF SPOKANE VALLEY Request for Council Action October 6, 2015 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ® admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Proposed Contracting and Purchasing Code Amendments. GOVERNING LEGISLATION: Numerous chapters of Title 39 RCW, including RCW 39.04, RCW 39.08, RCW 39.12, and RCW 39.80; numerous chapters of Title 3 SVMC, including SVMC 3.35, SVMC 3.40, SVMC 3.45, and SVMC 3.50. PREVIOUS COUNCIL ACTION TAKEN: Council adopted comprehensive contracting and purchasing regulations in 2007. BACKGROUND: The City's contracting and purchasing provisions are primarily set forth in chapters 3.35, 3.40, 3.45, and 3.50 Spokane Valley Municipal Code (SVMC). These chapters govern general contracting authority for the City Manager, certain bidding requirements for public work contracts, acquisition and disposition of real property, use of the small works roster, procurement of architectural and engineering services in conjunction with the requirements of state law, and non-public work purchases or contracts for services and public work Tess than $50,000. While the City has local code provisions regarding public bidding for public work contracts, procurement of public work is largely constrained by state law requirements that mandate that all public work over $40,000 for one trade or $65,000 for two or more trades be competitively bid. State law allows public work under $300,000 to be procured through use of the small works roster, if one is established. The City has established a small works roster pursuant to SVMC 3.50 and regularly uses it to procure public work projects under $300,000. The City competitively bids all public work over $300,000. The SVMC mirrors state law with respect to procurement of architectural and engineering professional services. The SVMC currently provides that for all other non-public work contracts and very small public work contracts, no competitive selection process is required. See SVMC 3.40.050(1). Although not required by the SVMC, the City regularly goes through competitive selection processes for such contracts and small public work projects. Neither state law nor the SVMC require any comparison of costs for purchase of goods. The review and revision process, which was also reviewed by the City's Finance Committee, involved extensive input from and discussions with all departments utilizing purchasing, including Public Works, Parks and Recreation, Community and Economic Development, and Finance. Staff also performed considerable research into what other jurisdictions do in order to efficiently contract with outside private parties. Staff are now presenting the results of that review and discussions - a comprehensive proposal to revise numerous sections of Title 3 SVMC related to purchasing and contracting. These changes will render the SVMC more user-friendly and further promote the City's goals of use of contracting and competitive selection processes for contracts and purchases. One of the major changes was to separate and group each type of purchase or contract into its own discreet chapter within the SVMC for quick reference and ease of use. This grouping is clear when looked at by chapter: Page 1 of 4 Contracts for Public Work: • SVMC 3.40, 3.41, and 3.42 relate to bidding requirements for public work projects at varying contract dollar thresholds. Contracts for Services: • SVMC 3.45 relates to architectural and engineering services, which have specific requirements under State law. • SVMC 3.46 relates to non -architectural and engineering service contracts, which would include services such as marketing services, outside legal counsel, and solid waste collection service contracts. Purchase of Goods: • SVMC 3.47 and 3.48 relate to purchase of goods and the use of the vendor list and purchase orders for such purchases. Real Property: • SVMC 3.49 relates to the acquisition and disposition of real property. The specifics of each chapter's proposed changes are described in detail below: Chapter 2.65 SVMC: Modify SVMC 2.65 to (1) increase credit limits on credit cards from $5,000 to $10,000, and (2) provide rules governing the use of credit accounts, which are accounts that the City has with certain vendors such as for auto parts. The City has used such accounts since incorporation and the changes require staff to follow the same process for credit accounts as other contracts since they utilize the City's credit. SVMC 2.65 would limit credit accounts to a $10,000 limit. Chapter 3.30 SVMC: Minor changes are proposed to conform the SVMC to current accounting standards. Chapter 3.35 SVMC: The primary proposed change was to move existing generally applicable contracting and purchasing definitions and other generally applicable provisions, such as the City Manager's contracting authority and prohibited practices, into a single consolidated chapter that applies to all contracting and purchasing in chapters 3.35 through 3.49 SVMC. Chapter 3.40 SVMC: This chapter currently contains the majority of contracting and purchasing provisions, including public work contracts over $300,000, non-public work contracts, and acquisition and disposal of real property. In order to limit confusion, this chapter has been reorganized to cover only those provisions regarding the bidding procedures for public work in excess of $300,000, and all other unrelated provisions will be moved to other chapters. We further clarified the requirements for payment and performance bonds as required by state law. Note that the bidding requirements for these large public work projects are specified by state law, and this chapter tracks state law. Chapter 3.41 SVMC: In order to group all public work project -related areas together, the provisions for the use of the small works roster under current chapter SVMC 3.50 were moved to newly created SVMC 3.41. The small works roster may be used for any public work contract under $300,000. Chapter 3.42 SVMC: State law allows local jurisdictions flexibility in setting bidding and procurement policies for public work contracts under $40,000 for one trade and $65,000 for two or more trades (a trade is a particular area such as plumbing, HVAC, or landscaping). To date, the City has had no established policy regarding bidding or procurement of public work contracts under those dollar thresholds. SVMC 3.42 is a new chapter that establishes the City's policy for bidding and procurement of public work contracts under the $40,000/$65,000 limits. Under SVMC 3.42, the City will require staff to obtain three or more Page 2 of 4 bids for public work between $7,500 and the $40,000/$65,000 threshold. Staff are encouraged, but not required to use a competitive process for public work contracts under $7,500. Chapter 3.45 SVMC: The procurement of architectural and engineering services ("A/E Services") is governed by state law. Chapter 3.45 SVMC has been updated to clarify that the architectural and engineering consultant roster may be used to select A/E Service consultants for contracts under $100,000 and the RFQ and selection process shall be used for contracts over $100,000. On federally funded projects, the City is required to conduct interviews with the top three qualified consultants and this requirement has been added to chapter 3.45 SVMC. Chapter 3.46 SVMC: State law does not require competitive bidding for contracts for services (other than A/E Services, provided for in chapter 3.45 SVMC above). Thus, the City is granted flexibility in setting policies for selecting service providers such as marketing, outside legal counsel, and solid waste collection services. To date, the City has had no policies or requirements for selecting service providers. Chapter 3.46 SVMC is a new chapter that establishes requirements for using competitive processes such as an RFQ or RFP process to select service providers for contracts over $100,000 or longer than one year, and a less formal process to obtain three proposals for contracts under $100,000 and less than a year. Staff are encouraged but not required to use a competitive process for service contracts under $7,500. Further, contracts for professional services where quality of work is the primary concern such as outside legal counsel and accountants may be negotiated in lieu of using a competitive process. Chapter 3.46 SVMC also establishes a non -architectural and engineering services consultant roster that may be used for contracts under $100,000 or less than one year. Chapter 3.47 SVMC: State law does not require code cities to have a competitive process to purchase goods and so the City may establish its own local policies as it determines necessary. To date, the City has not had a comprehensive policy governing the purchase of goods. Chapter 3.47 SVMC is a new chapter that establishes requirements for purchases of goods. A competitive process shall be used to find the cheapest price for goods over $40,000. Local sales tax revenues received by the City, shipping, and transportation costs may be taken into account when reviewing the quotes. Staff shall obtain three or more quotes for goods between $40,000 and $7,500 and may use the vendor list. Staff are encouraged, but not required to use a competitive process for the purchase of goods under $7,500. Chapter 3.48 SVMC: Chapter 3.48 SVMC is a new chapter that authorizes the City's vendor list. Further, chapter 3.48 SVMC requires that the purchase of any good over $1,000 shall be done so through the use of a purchase order. Purchase orders are not required for assets or consumable goods when required as part of pre -approved projects, for services, or for utility -related payments by the City (e.g., street lights as part of a street project or de- icer as part of the winter snow -plowing). Chapter 3.49 SVMC: Previously, the acquisition and disposition of real property was combined in chapter 3.40 SVMC with public work and non-public work projects. The provisions governing acquisition and disposition of real property have been moved to new chapter 3.49 SVMC with no major substantive changes except for clarifications in the process for disposing of surplus property. OPTIONS: Discussion. RECOMMENDED ACTION OR MOTION: Discussion. BUDGET/FINANCIAL IMPACTS: N/A. Page 3 of 4 STAFF CONTACT: Erik Lamb, Deputy City Attorney; Cary Driskell, City Attorney, Chelsie Taylor, Interim Finance Director, Mark Calhoun, Deputy City Manager ATTACHMENTS: Draft revisions to respective portions of the SVMC. Page 4 of 4 Proposed Contracting and Purchasing Code Amendments Cary Driskell, City Attorney Erik Lamb, Deputy City Attorney Background —Cont. • State law Numerous chapters of Title 39 RCW, including chapters 39.04, 39.08, 39.12, and 39.8o RCW • Existing City Code Primarily chapters 3.35, 3.40, 3.45, and 3.5o SVMC Several Administrative Policies and Procedures City of Spokane Valley - Office of the City Attorney Background City's current bidding requirements Competitively bid public works over $300,000 Small works roster under $300,000 No specified requirement under $40,000/$65,000 Regardless, City often uses a competitive process such as obtaining three bids Architectural and engineering No specified requirements for non-public works contracts No specified requirements for purchase of goods City of Spokane Valley - Office of the City Attorney Review Process Goals Provide clear rules to maximize use of competitive processes while still providing flexibility when needed Transparency Consistency Make the SVMC more user-friendly Several years of meetings and input from all departments that contract and purchase, including extensive input from Public Works, Parks and Recreation, Community and Economic Development, and Finance City of Spokane Valley - Office of the City Attorney General Changes Created discreet chapters for each type of purchase or contract and grouped together for quick reference and ease of use Public Work - SVMC 3.40, 3.41, and 3•4z Contracts for Services - SVMC 3.45 and 3.46 Purchases of Goods - SVMC 3.47 and 3.48 Real Property - SVMC 3.49 City of Spokane Valley - Office of the City Attorney Credit Card and Credit Account Use Increased limits on credit cards from $5,000 to sio,000 Provide rules governing use of credit accounts, which are accounts with vendors such as for auto parts City has used these accounts since incorporation, so these rules memorialize process Set limits of sio,000 and require same process as used for other contracts since they utilize the City's credit City of Spokane Valley - Office of the City Attorney Chapter 3.30 SVMC - Funds Minor changes to conform the SVMC to current accounting standards City of Spokane Valley - Office of the City Attorney 7 -:-: er SVMC Contract and Purchasing Authority Move existing generally applicable contracting and purchasing definitions into SVMC 3.35 Minor modifications to definitions for clarity and consistency in the SVMC Move other generally applicable provisions City Manager contracting authority Prohibited Practices Minor modifications for clarity and consistency City of Spokane Valley - Office of the City Attorney 8 ok ChaptT3.4O SVMC-tbmpetitive bidding Public Works in Excess of $300,000 Previously contained majority of contracting provisions, including non-public works, real property, and generally applicable provisions Moved all non-applicable provisions to appropriate chapters so chapter solely deals with public work contracts in excess of $300,000 Clarified payment and performance bonds required (as required by state law) Minor modifications for clarity and consistency City of Spokane Valley - Office of the City Attorney ok 3.41 SVMC =competitive Bidding Small Works Roster Moved from SVMC 3.5o to SVMC 3.4i in order to keep all public work chapters together Minor modifications for clarity and consistency City of Spokane Valley - Office of the City Attorney io Public Works less than $40,000/$65,000 No competitive bidding requirements previously, so this is new chapter State law allows code cities total flexibility in setting procurement methods Obtain three or more bids for public works between $7,500 and the $40,000/$65,000 threshold Staff are encouraged but not required to use a competitive process for public work contracts under $7,500 Finance Committee discussed, but did not come to resolution on increasing threshold from $7,500 to $15,000 City of Spokane Valley - Office of the City Attorney Engineering Services Governed by State law Requires competitive Request for Qualifications process - based upon qualifications Cannot consider price - price is negotiated once a consultant is selected as most qualified for the specific task Updated to clarify that the architectural and engineering consultant roster may be used to select consultants for contracts under sioo,000, as allowed by state law Federally funded projects require interviews with at least the top three qualified consultants City of Spokane Valley - Office of the City Attorney No state law requirements for code cities No competitive selection requirements previously, so this is a new chapter Contracts over a year or greater than sioo,000 use a formal competitive process such as an RFQ or RFP Under sioo,000 and less than one year - may use a less formal (but still competitive) process to obtain three proposals Staff are encouraged but not required to use a competitive process for contracts under $7,500 City of Spokane Valley - Office of the City Attorney Y3.46 SVMC - Contracts for Services —cont. For contracts for professional services where quality of work is primary concern, negotiation is allowed in lieu of competitive process Outside counsel; accountants Establishes a non -architectural and engineering services consultant roster for use on contracts under sioo,000 and less than one year Emergency exception City of Spokane Valley - Office of the City Attorney --c--11;er 3.47 SV2TTPurc ase of Goods No state law requirements No competitive selection requirements previously, so this is a new chapter A competitive process (published notice, obtaining quotes) is required for purchase of goods over $40,000 Local sales tax revenues received by the City, shipping, and transportation may be taken into account City of Spokane Valley - Office of the City Attorney -E-Frapter 3.47 SVMC - Purchase of Goods cont. Under X40,000 - use a less formal process to obtain three proposals May use the Vendor List Staff are encouraged but not required to use a competitive process for purchase of goods under $7,500 Emergency exception City of Spokane Valley - Office of the City Attorney Chapter 3:&(&SVid1E= b�t�dsEL+st And Purchase Orders Authorizes Vendor List Vendors may be added at any time, but at least once annually, notice of the Vendor List shall be published soliciting vendors who wish to be added Purchase orders are required for the purchase of any good over $1,000 Purchase orders are not required for assets or consumable goods when required as part of pre -approved projects, for services, or for utility -related payments by the City City of Spokane Valley - Office of the City Attorney Cha SVMC — i-- --'-. e —'ea Property; Disposition of City Property Moved from 3.4o to its own chapter Minor modifications for clarity and consistency City of Spokane Valley - Office of the City Attorney i8 Next Steps If approved, there will be an approximately three-month implementation period Ensure all staff are trained and using new procedures City of Spokane Valley - Office of the City Attorney 19 Questions? City of Spokane Valley - Office of the City Attorney 20 Chapter 2.65 CREDIT CARD AND CREDIT ACCOUNT USE* Sections: 2.65.010 Definitions. 2.65.020 Issuance, use and control of credit cards. 2.65.030 Establishment, use, and control of credit accounts. * Prior legislation: Ord. 8. 2.65.010 Definitions. A. As used in this chapter, the term "credit card" means a card or device issued under an arrangement pursuant to which the issuer (credit card company) gives to the card holder (the City) the privilege option toef obtaining credit from the issuer, usually at the point of sale. B. -As used in this chapter, the term "credit account" means an account established with a vendor under an arrangement whereby the vendor extends to the City the pegeoption efto obtaining credit to purchase goods from the vendor prior to payment. (Ord. 30 § 1, 2003). C. As used in this chapter, the term "City Manager" means the City Manager or designee, who is presumed to be the Finance Director. 2.65.020 Issuance, use and control of credit cards. The City adopts the following system for the issuance, use and control of credit cards by City officials and employees. A. The City Managerfinenc is authorized to obtain City credit cards under the following system, which provides for the distribution, authorization, control, credit limits, and payment of bills through the use of the credit cards by City officials and employees. 1. Issuance and Use. Credit cards may be issued to the City of Spokane Valley and used by City officials and authorized employees for purchasing goods, supplies, and other items from vendors or incurring registration, training, or travel expenses in connection with the performance of their duties on behalf of the City. 2. Authorization and Control. Upon authorization from the eCity Manager mManager or designee, City employees may obtain credit cards from the finance directorCity Manager who shall maintain a ledger of the individual receiving the credit card, including the date the card was received. City Ceouncil members may obtain credit cards from the finance directorCity Manager. The finance directorCity Manager shall implement accounting controls to ensure the proper use of credit cards and credit card funds. 3. Credit Limits. The credit limit shall not exceed $10,000 per card. 4. Payment of Bills. The finance directorCity Manager shall establish a procedure for the prompt payment of all credit card bills on or before the due date. 5. Unauthorized Charges. No official or employee shall use the City -issued credit card for non -City business purposes. No charge(s) shall exceed amounts established and available in the City budget. 6. Cash Advances. Cash advances on credit cards are prohibited. B. Expenses incident to authorized travel may be charged to a City -issued credit card provided the official or employee returns to the City with credit card receipts in accordance with the City travel policies and procedures. An expense reimbursement form is also requireddesired. If certain credit charges are disallowed as a result of audit or City policy, such charge mustshall be repaid to the City, with the City having the right to withhold funds payable to the official or employee up to the amount of the disallowed charge including interest at the rate charged by the credit card company. C. The Ceity Mmanager is authorized to revoke the use of any chargecrcdit card issued and immediately require the surrender of the credit card. The city Mmanager may deliver a incurred after the date of revocation. D. _The Ceity Mmanager is authorized to adopt any additional rules or policies necessary to implement these provisions of the ordinance codified in this section. (Ord. 07 011 § 1, 2007; Ord. 30 § 2, 2003). 2.65.030 Establishment, use, and control of credit accounts. The City adopts the following system for the establishment, use, and control of credit accounts by City employees. A. The City Manager is authorized to establish City credit accounts under the following system, which provides for the authorization, control, credit limits, and purchase of goods through the use of the credit accounts by City employees. 1. Establishment and Use. Credit accounts may be established by the City of Spokane Valley and used by City authorized employees for purchasing goods, equipment, and supplies from vendors for City purposes. 2. Authorization, Application, and Control. Upon authorization from the department director, City employees may apply to vendors to establish credit accounts. All applications shall be signed by the City Manager. The City Manager shall implement accounting controls to ensure the proper use of credit accounts. 3. Credit Limits. The credit limit shall not exceed $10,000 per account. 4. Payment of Bills. The City Manager shall establish a procedure for the prompt payment of all credit account bills on or before the due date. All credit account bills shall be paid within the same fiscal year in which the bill was incurred. 5. Unauthorized Charges. No employee shall use a City credit account for non -City business purposes. No charge(s) shall exceed amounts established and available in the City budget. B. The City Manager is authorized to suspend the use of any credit account or to suspend any employee from using credit account(s). C. The City Manager is authorized to adopt any additional rules or policies necessary to implement these provisions. Chapter 3.30 GENERAL FUND PETTY CASH ACCOUNT Sections: 3.30.030 General fund petty cash account established. 3.30.030 General fund petty cash account established. The Ceity Mmanager or designee is hereby authorized to establish a general fund petty cash account in such amounts as the Ceity Mmanager may from time to time, in writing, determine necessary for the efficient handling of the purposes for which the accountfund is established, but not to exceed $1,000. This accountfund is established to facilitate minor authorized disbursements and the making of change. _The accountfund shall be administered by the city manager, finance director or designees of the same, in accordance with rules or policies providing for such lawful administration. Chapter 3.35 CONTRACT AND PURCHASING AUTHORITY Sections: 3.35.005 Definitions. 3.35.010 Contract authority. 3.35.0250 Rules and policy. 3.35.005 IDefinitions.L - The terms defined in this section shall apply to SVMC 3.35, 3.40, 3.41, 3.42, 3.45, 3.46, 3.47, 3.48, and 3.49 and shall have the following meanings: "Architectural and engineering services" means professional services rendered by any person, other than an employee of the City, contracting to perform activities within the scope of the general definition of professional practice in Chapter 18.08, 18.43, or 18.96 RCW. "Adequate appropriation balance" means budgctcd funds arc still available in the fund budget. "Bid" means an offer submitted by a bidder to furnish services, labor, supplies, materials, goods, equipment, and other property in conformity with the specifications, delivery terms, and conditions, and other requirements included in the invitation for bids or otherwise required by the City. "Bid bond" means a bond or other appropriate seetbid proposal deposit as approved in advance by the City, the purpose of which is to provide security to the City in the event the successful bidder fails to enter into a contract with the City. "Bidder" means a firm or individual who regularly maintains a place of business, transacts business, solicits business, or maintains an inventory of merchandise for sale in, and is registered with o y, the City and who submits or has submitted a bid to the City. "Bidding" means the procedure used to solicit quotations on price and delivery from prospective suppliers of contractual services, materials, goods, and equipment, and other City propos. which can be through either a formal or informal competitive bid process. "Capital equipment" means any equipment of the City having an initial value of $5,000 or more and an estimated useful life of three or more years. "Change orders" and "requests for additional work" mean a request for additional or alternative services, work or procurement where there are changed conditions, a requirement that extra work or service be performed, or such other circumstances that necessitate a modification to the contract, and where such additional or alternative services, work, or procurement is in the best interest of the City. 'Commented [ell]: Note: Definitions were consolidated from SVMC 3.35, SVMC 3.40, and SVMC 3.45. The redlining in SVMC 3.35.005 primarily represents the consolidation of these definitions into one initial section. "City Manager" means the City Manager or designee, who is presumed to be the Finance Director. "City property" means any item of rea' er perGona' property or equity interest in real or personal property held or owned by the City. "Consultant" means any person providing professional services to the City who is not an employee of the City "Contractual services" means services provided by professional and general service contracts to accomplish a particular project or service. "Person" means any individual, organization, group, association, partnership, firm, joint venture, corporation or any combination thereof. "Public work" has the meaning set forth in RCW 39.04.010, as adopted or may be amended. "Purchase" means the acquisition of supplies, materials, goods or equipment, and other property. "Purchase order" means a written authorization calling on a vendor or supplier to furnish • .. supplies, materials, goods, equipment, and other personal property to the City with a promise for payment to be made later. "Purchasing agent" means a person `' who will purchases supplies, materials, goods, equipment, and other property on behalf of the City. "Requisition" means a standard form providing detailed information as to quantity, description, estimated price, possible vendors, fund account, signature, and other information necessary to make purchasing decisions. -"Responsible bidder" means a bidder who meets the requirements set forth in RCW 39.04.350 as adopted or may be amended. Additionally, a bidder shalllias proven by experience or information furnished to the satisfaction of the City Manager that current financial resources, production or service facilities, service reputation and experience are adequate to make satisfactory delivery of supplies of acceptable quality, equipment, or contractual services and who has not violated or attempted to violate any provisions of this Chapter. In addition to price, the City shall take into account the following when determining the responsible bidder: 1. The ability, capacity, and skill of the bidder to perform the contract or provide the service required; 2. The character, integrity, reputation, judgment, experience, and efficiency of the bidder; 3. Whether the contractor can perform the required work within the time specified by the City; Quality of the contractor's performance under previous contracts with the City or other governmental entity; and 4. 2.The previous and existing compliance by the contractor with laws relating to contracts or services with the City. ;5. The five supplemental criteria described above shall be included in the documents for all bids so prospective bidders may be aware of such supplemental criteria. The City may include additional supplemental criteria as provided in RCW 39.04.350 for particular projects as is determined necessary. 3.35.010 Contract authority. A. The Ceity manager is authorized to enter into contracts, contract modifications, or change orders without Ceity Ceouncil approval when the aggregate amount of the contract and all existing contract amendments or change orders doeses not exceed $200,000, except as set forth in SVMC 3.35.010(C)cubsoction C of this soction. B. Any contract, contract amendment, and/or change order in excess of the Ceity Mmanager's authority shall require prior approval of the Ceity Ceouncil. C. On contracts for which prior Ceity Ceouncil approval is required and received, the Ceity M+tanager shall have authority to execute any amendments or change orders which, when aggregated, are less than 15 percent of the original contract amount, or up to $200,000, whichever is less. D. The finance committee of the Ceity Ceouncil Finance Committee is authorized to approve change orders on short notice that are in excess of the amounts authorized in SVMC 3.35.010(C)(ubsoction C of this soction, in circumstances where such a change order is necessary to avoid a substantial risk of harm to the City. In such an event, the Ceity ffiManager shall provide appropriate information to the Ceity Ceouncil at its next regular meeting setting forth the factual basis for the action. E. Change orders shall only be approved if they are for additional or alternative services, work or procurements that are within the scope of purpose and intent of the original bid and contract. 3.35.0520 Rules and policy. The Ceity Manager may develop rules, policies, and procedures to implement this Cehapter. .3.35.030 Administration. Under direction of the City Manager, the contracting and purchasing procedures shall be administered in accordance with this Chapter and other applicable laws, including all applicable state and federal laws. The City Manager shall have the responsibility to: Commented [EL2]: Moved from SVMC 3.40 as itis generally applicable. A. Administer and maintain the contracting process and the purchasing system according to the rules and regulations established or authorized by applicable ordinances and statutes. B. Coordinate the negotiation, purchase, and disposition of all City supplies, materials, and equipment in consultation with City staff. C. Seek to obtain a competitive price on all City contracts or purchases by bidding, submitting requests for proposals and qualifications, using the Small Works Roster, Consultant Roster(s), and Vendor List(s) or negotiating on such contracts or purchases as appropriate. D. Prescribe and maintain such administrative policies, procedures, and forms as are reasonably necessary to implement this Chapter. E. Coordinate the inspection of all City -purchased equipment to ensure conformance with specifications. F. Ensure that the Small Works Roster, Consultant Roster(s), Vendors List(s), and other records needed for the efficient operation of the purchasing system are maintained. G. Maintain the property inventory and fixed asset systems of the City. H. Determine the need for any routine preventive maintenance contracts on various pieces of equipment, and to establish and maintain said maintenance contracts. I. Periodically prepare a comprehensive list of surplus, worn out, or obsolete City -owned equipment. Items which cannot be used or reassigned to another department shall be recommended for disposal pursuant to SVMC 3.49.020. 13.35.040 Prohibited practices. The following types of purchasing and bidding practices are hereby prohibited and may result in disqualification of the bid, proposal, or procurement quote: A. Collusion Among Bidders. Any agreement or collusion among bidders, prospective bidders, vendors or prospective vendors to either buy or sell or fix prices in restraint of free competition. Such bidders or vendors may be subject to exclusion from future bidding or procurement processes with the City when determined by the City Manager to be in the best interests of the City. B. Disclosure of Formal Bid Contents. Any disclosure of information contained in the sealed bid prior to bid opening. Notwithstanding anything herein to the contrary, all bids submitted by bidders taking advantage of any information revealed contrary to this section shall become null and void. Commented [EL3]: Moved from SVMC 3.40 as itis generally applicable. C. Gratuities. In accordance with high standards of behavior, the acceptance of any gift or gratuity in the form of cash, merchandise, or any other thing of value by an official or employee of the City from any bidder, vendor or contractor, or prospective bidder, vendor or contractor. D. Employee -Owned Businesses. Obtaining City goods or services from businesses in which City officials, employees, or their immediate family members have a majority ownership interest or otherwise exceed the "interests" described in Chapter 42.23 RCW. E. Sale of Materials and Supplies. The City acquiring goods or services for any private party, or selling its materials or supplies to City officials, employees or the public except when such materials have been declared surplus and disposed of as provided in SVMC 3.49. Chapter 3.40 CONTRACT PURCHASESCOMPETITIVE BIDDING — PUBLIC WORKS IN EXCESS OF $300,000 Sections: 3.10.010 Definitions. 3.10.020 Administration. 3.40.0410 Competitive bidding — Public works in excess of $300,000. 3.40.020 Exemptions to competitive bidding requirements. 3.10.060 Prohibited practices. 3.10.070 Disposition of City property. 3.40A -1 -0 -Definitions. Unloss tho context requires othorwiso, the terms used in this chapter shall have the f llowin "Adequate appropriation balance" mcans budgctcd funds arc still availablc in thc fund budget. "Bid" mcans an offcr submitted by a biddcr to furnish services, labor, supplics, matcrials, goods, cquipmcnt and othcr property in conformity with thc specifications, dclivcry tcrms and condition, and othcr requirement, includcd in thc invitation for bid, or othcrwi3c rcquircd by thc City. "Bid b nd" niean a bond or other appropriate security as approved in advance by the City. "Bidder" moans a firm or individual who regularly maintains a place of businoss, transact, business, solicits business or maintains an inventory of merchandise for sale in, and is registered or licensed by, the City. "Bidding" moans the procedure used to solicit quotations on price and delivery from prospoctivo uppliors of contractual services, materials, goods, oquipmont, and other City property, which can bo through either a formal or informal competitive bid process. "Capital oquipmont" moans any oquipmont of the City having an initial value of $5,000 or moro and an estimated useful life of throe or more years. "City manager" moans the city manager or designee. "City property" moans any item of real or personal property owned by the City. Commented [ell]: Definitions were consolidated into one section in SVMC 335.005. "Contractual sorvicos" moans professional and general sorvico contracts to accomplish a particular projoct or service. "Purchase" moans tho acquisition of supplies, materials, goods or oquipmont and other proporty. "Purchase order" moans a documont usod to authorizo tho oncumbranco of City funds toward tho purchase of supplies, materials, goods, oquipmont and othor property. "Purchasing agont" moans the finance director or dosignoo who will purchase supplios, materials, goods, oquipmont and othor property on behalf of tho City. "Requisition" moans a standard form providing dotailod information as to quantity, description, .. .. . . .. .. .... make purchasing decisions. "Rosponsiblo bidder" moans a bidder who has proven by oxporionco or information furnished to facilities, sorvico reputation and oxporionco aro adoquato to make satisfactory delivery of ,supplies of acceptable quality, oquipmont, or contractual services and who has not violated or attempted to violate any provisions of this policy. A. Admini3tcr and maintain thc purchasing sy3tcm according to thc rules and rcgulationa established or authorizod by applicablo ordinances and statutes. B. Coordinate the negotiation, purchase, and disposition of all City supplies, materials, and equipment in consultation with City staff. C. Sook to obtain competition by bidding or nogotiation on all City purchases. D. Proscribo and maintain such administrative policios, procedures, and forms as aro roasonably necessary to implement this chaptor. E. Coordinate tho inspection of all City purchased equipment t assure c of rmancc with ,specifications. F. _Ensure that biddors' lists, vendors' catalog files and othor rocords noodod for tho officiont operation of the purchasing system aro maintained. G. Maintain the property inventory and fixed asset systems of the City. Commented [EL2]: This section moved to SVMC 335 as it is generally applicable to all contracts. H. Determine with appropriate City staff the need for any routino preventive maintonanco contracts on various pieces of equipment, and to establish and maintain said maintonanco contracts. I. Periodically prepare a comprehensive list of surplus, worn out, or obsolete City owned equipment. Items which cannot bo used or reassigned to another department shall bo recommended for disposal at a public auction. 3.40.0140 Competitive bidding — Public works in excess of $300,000. For public works contracts in excess of $300,000, whore the small works process in Chapter 3.50 SVMC is not used, the following competitive bid process shall be used. When using federal funds, the City shall also comply with all mandatory federal requirements. A. Publication of Notice. Sealed bids shall be invited by a single publication in a newspaper of general circulation at least 1344 days before the date and time set for receivingepeffifig such bids, and shall include an estimate of the probable cost, together with a description of the work, and shall state that plans/specifications may be obtained from the City, and include the manner, place, date, and time for submitting a bid to the City. The Coity Celerk shall also post notice of the request in a public place. B. _Rejection of Bids. The City Managerfinancc director may reject, without cause, any and all bids and may re -advertise for bids pursuant to the procedures herein described. If no bids are received on the first call or any subsequent re -advertisement, the City Managerfinanccd rector may negotiate a contract with a vcndorcontractor at the lowest cost possible to the City. C. Performance and Payment Bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, the finance director shallmay require a performance bond and a payment bond shall be required in such amounts as i care reasonably necessary to protect the best interests of the City and to ensure complete, proper, and full performance of the contract and full payment of all laborers, mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public works construction projects, as provided for and in the manner -as set forth in RCW 39.08.010 through 39.08.030, as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions. For public works and works by contract on which prevailing wage is required to be paid under $35,000, solely at the contractor's option, the City may, in lieu of requiring payment and performance bonds, retain 50% of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed under Chapter 60.28 RCW. Retainage in lieu of payment and performance bonds shall only be used for contracts where the requirement of bonds substantially increases the cost of the contract. D. _Bid Bonds. Tho_financo director shallmay roquiro aAs a condition of bidding, a bid bond in the amount of five percent of the bid amount shall be required. Such bid bond shall be required on all formally bid public works construction projects, and shall be due at such time as the bid is submitted to the City. When the contract is let, all bid bonds shall be returned to the bidders except that of the successful bidder, which shall be retained until a contract is entered into and a bond to perform the work furnished as provided above. If the successful bidder fails to enter into the contract in accordance with the bid within 10 days from the date at which the bidder is notified of bid award, the bid bond shall be forfeited. E. Award of Bid. Except as otherwise provided herein, the City will accept the bid of the lowest responsible bidder. F. Award to Other Than Low Bidder. When the bid award is not given to the lowest responsible bidder, a full and complete statement of the reasons shall be prepared by the City Managed and placed in the City file relating to the transaction. 3.40.0250 Exemptions to competitive bidding requirements. The following types of purchases are exempt from competitive bidding requirements. The factual basis for any purchase deemed exempt pursuant to SVMC 3.40.020(A) --(C) shall be filed with the contract with the City Clerk and shall be open to public inspection. A. Sole Source or Equipment Repair. Purchases which by their nature are not adapted to competitive bidding, such as purchases which are clearly and legitimately limited to a single source, and contracts to repair equipment owned by the City which may be more efficiently accomplished by a certain person or firm with previous experience on the equipment.Thc city manager shall have previously adopted written policies, which require setting forth the contract and factual basis for this oxomption, which must then bo rocordod with the city clerk and opon to public inspection. B. Special Facilities or Market Conditions. Purchases involving special facilities or market conditions that generally relate to acquisition of unique facilities that may be specially manufactured or not otherwise generally available. Special market conditions may require immediate acquisition based upon a favorable offer, including, but not limited to, liquidation sales, public or private party offers, and similar circumstances where the acquisition can be obtained at below_ market value.Tho city manager shall have previously adopted written policies, which roquiro setting forth tho contract and factual basis for this oxomption, which must then bo rocordod and opon to public inspection. }C._ Auction, Closeout, Bankruptcy Sales. _If it is dotorminod that supplies, materials, or equipment can bo purchased through public auction, closeout sale, bankruptcy sale, or othor similar sale at a cost below tho market cost_tho finance diroctor_may authorize said purchase(s) up to $200,000. D. Exchanges. _Tho City may by agreement exchange supplies, materials, or oquipmont with other public agencies. E. Interlocal Agroomonta city manager may ontor into joint purchase agreements with any and all othor public agoncioa within tho state for the purchase of any commodity, oquipmont, or service as pormittod by state law, whoro it is dotorminod by tho city manager to bo in tho bost intorosts of tho City. CF. Emorgoncy Purchases. In tho event that an omorgoncy should arise after office hours, which omorgoncy requires immediate action on the part of tho City department involved for the protection of the bost intorosts of tho City, or should such a situation arise on a Saturday, Sunday, or holiday and whoro it is not possible or convenient to roach tho city manager, any necessary purchase shall bo made by tho City department for which the purchase is necessary. Tho purchase shall bo reported to the finance director the next business day. _Publication notices may be waived for emergency purchases as provided by law.L Emergency Public Works Projects. In the event that an emergency should arise which requires immediate action on the part of the City to protect the health, safety, or welfare of the citizens of the City and where it is not possible to timely adhere to the bidding practices set forth above, the person authorized by state law or otherwise designated by the City Council to act in the event of an emergency may declare an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts to address the emergency situation. If a contract is awarded pursuant to this subsection without bidding due to an emergency, a written finding of the existence of an emergency shall be made by the governing body or its designee and duly entered of record no later than two weeks following the award of the contract. For purposes of this subsection, an emergency means unforeseen circumstances beyond the control of the City that either: (1) present a real immediate threat to the proper performance of essential functions; or (2) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken. (Commented [e13]: These sections were not deleted, but were moved to eliminate duplication (such as Real Property, which is provided in SVMC 3.49), were included in separate chapters (such as certain small public works, which are in SVMC 3A2) or were moved to remain consistent with the remaining provisions. D. Auction, _ : E . .... _ .. _ . The purchase of supplies, materials, or equipment not exceeding a cost of $200,000 through „auctions conducted by the government of the United States or any agency thereof, any agency of the state of Washington, any municipality or other government agency, or any private party talo at a cost below tho market cost, may be authorized by the City Manager if the item may be obtained at a competitive cost.[ - -Commented [EL4]: Modified to match RCW 39.30.045. E. Exchanges. By mutual agreement, the City may exchange supplies, materials, services, or equipment with other public agencies. G. Potty Cash. Tho finance department may maintain a potty cash/change fund of up to $1,500 to help eliminate tho issuance of purchase orders and claims vouchers for small items noodod immediately from vendors not having open purchase orders. No single potty cash purchase shall exceed $100.00. All requests for potty cash funds or reimbursement of potty expenditures shall bo roconcilod by a rocoipt or paid invoice, or a complotod potty cash form. Reimbursements and reconciliations of potty cash funds shall bo mado within 30 days of tho transaction. No porsonal chocks shall bo cashod out of tho potty cash fund. roquiromonts sot forth in this chapter. Upon approval of tho city council, tho city manager may procood to acquiro roal proporty through nogotiation. Such nogotiations shall bo basod upon a fair market value appraisal of tho proporty. Tho City shall not pay moro than fair market value for any roal proporty, oxcopt with prior city council approval, or oxcopt as may bo approved by tho Washington State Department of Transportation on bohalf of tho City for road construction projocts. I. Non public works purchases or contracts for sorvicos, and public works purchasos loss than $50,000. Non public works purchasos or contracts for sorvicos, and public works purchasos of loss than $50,000 aro not subjoct to a formal compotitivo bidding procoss. At loast twico por yoar, tho City shall publish in a nowspapor of general circulation a notico of tho oxistonco of vondor lists for purchasos of supplios, matorials, goods or oquipmont, and solicit tho namos of vendors is ostablishod and for awarding tho contracts for tho purchases to tho lowost rosponsiblo biddor a3 defined in SVMC 3.50.0'10(C). Immodiatoly aftor tho award is mado, tho bid quotations obtainod contract awardcd pursuant to this subscction nccd not be advertised. Commented [ELS]: Moved to SVMC 335 as itis generally applicable and not limited to competitive bids over $300,000 only. The following types of purchasing practiccs arc hcrcby prohibitcd and may result in disqualification of the bid: A. Collusion Among Biddors. Any agroomont or collusion among biddors or prospoctivo biddors to oithor buy or soll or fix pricos in restraint of froo compotition. _Such biddors may bo .subject to oxclusion from futuro bidding with tho City whon dotorminod by tho finance diroctor to bo in tho bost intorosts of tho City. B. Disclosuro of Formal Bid Contonts. Any disclosuro of information containod in tho soalod biddors taking advantago of any information rovoalod contrary to this soction shall bocomo null and void. C. Gratuities. In accordanco with high standards of behavior, tho accoptanco of any gift or gratuity in tho form of cash, merchandise,. or any othor thing of valuo by an official or omployoo of tho City from any vondor or contractor, or prospoctivo vondor or contractor. D. Employoo Ownod Businossos. Obtaining City goods or sorvicos from businossos in which City officials, employees,. or thoir immediate family mombors have a majority ownership intorost or othorwiso oxcood tho "intorosts" doscribod in Chaptor '12.23 RCW. E. Salo of Materials and Supplios. Tho City acquiring goods or sorvicos for any privato party, or .soiling its matorials or supplios to City officials, omployoos, or tho public oxcopt whon suchaid matorials have boon doclarod surplus and disposod of as provided horoin. City property shall bo disposod of in tho following manner- A. anner A. Dofinition. "City property" as defined horoin moans any proporty or oquity intorost in roal or porsonal proporty hold or owned by tho City. B. Surplus Property. Tho docision to doclaro property surplus shall rost sololy with tho city council. Upon rocommondation of tho financo diroctor, tho city council may doclaro property .surplus upon ono or moro of tho following critoria: 1. Tho City has or anticipatos no practical, officiont, or appropriato uso for tho proporty. 2. Tho purposo served by tho property can bo accomplishod by uso of a bettor, los3 costly, or moro officiont alternative. 3. The purpose scrvcd by thc property no longcr cxists as determined by a changc of policy or practice. C. Sale of Property. Following passage of a rc3olution by thc city Ccouncil declaring property surplus, thc finance dircctor i3 authorized to sell surplus property in the following manner -1 Upon a finding by a dopartmont diroctor that tho property is surplu3 to City uso, tho financo diroctor shall provide notico of potontial disposition to othor City departments. If any dopartmont diroctor dosiros to acquiro and uso tho proposod surplu3 proporty, tho property may bo transferred to tho roquosting dopartmont diroctor, or othor authorized representative. 2. If no roquost for tho uso of proposod surplus property is rocoivod, 2. If no roquost for uso of proposod surplus property is rocoivod, tho financo diroctor may proceed to dispose of tho samo by public auction, bid, or othor mothod of salo on torms doomod to bo in the best intorosts of tho City. 3. Surplus porsonal proporty which is unsollablo bocauso of obsolosconco, woar and toar, or othor roasons may bo dismantlod, if nocossary, and sold as scrap.Surplus porsonal proporty which has no marketable value or uso may bo discardod as rofuso. 'I. If tho proposod surplus property is roal property, notico of tho proposal to declare tho samo .surplus shall bo givon to tho city council. Commented [EL6]: Moved to SVMC 3.49 since it is not part of competitive bidding, but represents a separate topic that should be provided in a single chapter. 5. If the city council doclaros the real proporty as surplus, the financo diroctor shall cocuro a market value appraisal of the property and proceed to soll tho samo by public auction or through tho formal bidding procoduros tho city manager dooms to bo in the best intorosts of the City. D. Trade of Real Property. Real proporty may bo traded undor tho following conditions: 1. If tho financo diroctor dotorminos that tho disposal of roal proporty doclarod surplus under this soction could roalizo groator bonofit to tho City through consideration other than cash, tho financo diroctor may invite prospective purchasors to tondor consideration of cash and proporty. Upon rocoipt of a bid tondoring consideration in kind, and prior to accepting such bid, tho financo diroctor shall make a roport setting forth tho benefits of such a transaction. This roport shall bo mado to tho city council at a rogular council mooting and tho report shall bo opon to public inspoction. 2. Boforo accopting any bid containing in kind consideration, an adoquato appraisal must have boon mado by a qualifiod indopondont appraiser. 3. If tho city council finds that tho bid containing tho in kind consideration has more value or bonofit to tho City than any othor bid submittod, tho financo diroctor may accopt the bid containing in kind consideration. L. Lcasc of Public Property. Whcn specifically providcd for in thc City budgct, thc city manager may authorizc thc lease or sublcasc of any property, including rcal property, undcr such tcrms and conditions as thc city manager may dccm dcsirablc, fair and appropriatc, cithcr by use of ncgotiations or bidding in thc best intcrcsts of thc City. Lcascs of rcal property shall not be granted for a period of morc than five years, unless otherwise authorized by thc city council. Chapter 3.4160 PUBLIC WORKS - SMALL WORKS ROSTER ($300,000 or less) Sections: 3.410.010 Small works roster. 3.410.020 Creation of separate rosters. 3.410.030 Maintenance of roster. 3.410.040 Use of roster. 3.4150.010 Small works roster. The Csity Celerk shall maintain a Ssmall Wworks Rfoster comprised of contractors who (1) have requested to be on the roster, and (2) are properly licensed or registered to perform contracting work in the state of Washington. The Ssmall Wworks Rfoster may be used in lieu of formal sealed competitive bid procedures to award contracts for public work where the estimated cost of the Wwork is $300,000 or less. ThoA Ssmall Wworks Rfoster is created and shall be maintained pursuant to the laws of the state of Washington as now enacted or hereafter amended. 3.4150.020 Creation of separate rosters. The City may elect to establish Ssmall Wworks rosters for different specialties or categories of anticipated work with such rosters making distinctions between contractors based upon such specialties or work. 3.4150.030 Maintenance of roster. The Ssmall Wworks Rfoster shall be maintained as follows: A. At least once per year, the City Clerk shall publish in a newspaper of general circulation a notice of the existence of the Ssmall Wworks Rfoster(s) soliciting the names of contractors for such Rfoster(s). The City Clerk shall place on the Ssmall Wworks rostor(s) thoRoster the names of qualified contractors who respond to the published notice with a requesting to be included on the Rfoster$ . Thereafter, the City Clerk shall add to the Rfoster(s.) the names of contractors who submit a written request and appropriate records. B. In order to be included on the Rfoster, the contractor shall supply information on a contractor qualification form developed by the City. The contractor qualification form shall include, at a minimum, the name, address, e-mail address and phone number of the contractor, the contractor's Washington registration number, the contractor's insurance company, the contractor's bonding company, and the contractor's area or areas of work. 3.4150.040 Use of roster. A. The City may utilize the Ssmall Wworks Rfoster when seeking to construct any public work or improvement with an estimated cost including labor, material, supplies, and equipment, of $300,000 or less. B. Procedures shall be established for securing telephone, written, or electronic quotations from contractors on the appropriate Ssmall Wworks Rfoster to ensure that a competitive price is established and to award contracts to the lowest responsible bidder, as defined provided in SVMC 3.41.040cubsoction ICI of this section. Invitations for quotations bids shall include -aft estimate of the scope and nature of the Wwork to be performed as well as materials and equipment to be furnished. However, dDetailed plans and specifications need not be included in the invitation. Quotations shall be invited from all appropriate contractors on the appropriate Ssmall -Wworks Rfoster. C. When awarding a contract for work from the Ssmall Wworks Rfoster, the City shall award the contract to the lowest responsible bidder_, H -however, the City reserves the right under applicable law to reject any or all bids and to waive procedural irregularities in the bid or bidding process. 1ln addition to prico, tho City shall take into account tho following when dotormining tho "lowest responsible bidder": 1. The ability, capacity and skill of thc bidder to perform thc contract or provide thc service rcquircd; 3. Whcthcr thc contractor can perform thc rcquircd work within thc time specified by thc City; 'I. Quality of tho contractor's performance under previous contracts with tho City or othor governmental entity; and 5. Tho previous and existing compliance by tho contractor with laws relating to contracts or ,orvicos with tho City. D. The City may receive bids telephonically, in writing, which may be submitted of electronically. The time and date of receipt shall be recorded to ensure all bids are presented in a timely fashion for review and consideration. After expiration of the time and date for submission of all bids or quotations, the City shall review the camobids submitted and either offer a contract to perform the public work or reject all bidscubmit tho same to tho city council for authorization_ E._ The City shall post on the City's website a list of the contracts awarded under this Chapter at least once every year. The list shall contain the name of the contractor or vendor awarded the contract, the amount of the contract, a brief description of the type of work performed or items purchased under the contract, and the date it was awarded. The list shall also state the location where the bid quotations for these contracts are available for public inspection. Commented [ell]: This has not been deleted, but was incorporated into the definition of " responsible bidder" in SVMC 3.35.005. F. A contract awarded from a Ssmall Wworks Rfoster under this Cshapter need not be advertised in a legal newspaper of general circulation. Immediately after an award is made, the bid quotations shall be recorded, open to public inspection, and available by telephone inquiry. G. Performance and Payment Bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure complete, proper and full performance of the contract and full payment of all laborers, mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects, as provided for and in the manner set forth in RCW 39.08.010 through 39.08.030, as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions. For public works and works by contract on which prevailing wage is required to be paid under $35,000, solely at the contractor's option, the City may, in lieu of requiring payment and performance bonds, retain 50% of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed under Chapter 60.28 RCW. Retainage in lieu of payment and performance bonds shall only be used for contracts where the requirement of bonds substantially increases the cost of the contract. Chapter 3.42 PUBLIC WORKS PROPOSALS - $65,000/$40,000 or less Sections: 3.42.010 Public work equal to or less than $40,000 for one trade and $65,000 for two or more trades and greater than $7,500. 3.42.020 Public work equal to or less than $7,500. 3.42.030 Exception to selection processes. 3.42.040 Performance and payment bonds. SVMC 3.42.010 Public work equal to or less than $40,000 for one trade and $65,000 for two or more trades and greater than $7,500. When entering into a contract for public work equal to or less than $40,000 if only one trade or craft is involved, or $65,000 if two or more trades are involved, but greater than $7,500, the responsible department shall obtain three or more proposals for the public work required, select the lowest responsible proposal, and maintain a record of the process followed. Alternatively, the department may utilize the Small Works Roster and process set forth in SVMC 3.41. If less than three proposals are received, City staff shall not be required to resubmit for additional proposals, but shall select from the proposals submitted. If no proposals are received, City staff shall not be required to resubmit for additional proposals, but may negotiate with any available contractor. SVMC 3.42.020 Public work equal to or less than $7,500. When entering into a contract for public work in an amount equal to or less than $7,500, the responsible department is encouraged, but is not required, to use a competitive bidding process, including obtaining three proposals as set forth in SVMC 3.42.010, or using the Small Works Roster and process set forth in SVMC 3.41. If a competitive process is not utilized, the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. SVMC 3.42.030 Exception to selection processes. If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.42.010 and SVMC 3.42.020, the selection procedures set forth in this chapter may, with prior approval of the City Manager, be waived by the department director, and the contract may be awarded without following the procedures set forth in SVMC 3.42.010 and 3.42.020. The circumstances giving rise to such waiver shall be documented in writing. SVMC 3.42.040 Performance and payment bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure complete, proper and full performance of the contract and full payment of all laborers, mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects, as provided for and in the manner set forth in RCW 39.08.010 through 39.08.030, as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions. For public works and works by contract on which prevailing wage is required to be paid under $35,000, solely at the contractor's option, the City may, in lieu of requiring payment and performance bonds, retain 50% of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed under Chapter 60.28 RCW. Retainage in lieu of payment and performance bonds shall only be used for contracts where the requirement of bonds substantially increases the cost of the contract. Chapter 3.45 ARCHITECTURAL AND ENGINEERING SERVICES Sections: 3.15.005 Definitions. 3.45.010 Architectural and engineering services — Consultant Roster. 3.45.020 Selection Process — Consultant Roster for contracts up to $100,000: Request for qualifications for contracts over $100,000 3.45.030 Procurement of architectural and engineering services. 3.45.04;0 Emergency and limitation. 3.45.005 D„finiti ns other than as an employee of the City, contracting to perform activities within the scope of the general definition of "professional practice" in Chapter 18.08, 18.13, or 18.96 RCW. "City manager" means the city manager or designee. "Consultant" means any person providing professional services who is not an employee of the agency far which the seiices afe provided. "Person" means any individual, organization, group, association, partnership, firm, joint venture, corporation, or any combination thereof. 3.45.010 Architectural and engineering services — Consultant Roster. Annually, or in response to specific projects or work as set forth below, the City shall encourage, through notice published in a newspaper of general circulation, architectural and engineering firms to submit a statement of qualifications and performance data which can be used to select firms that provide services to the City. _The qualifications and data shall be maintained byift the office of the Ceity Celerk and be available for public inspection. The City Manager shall establish procedures for the maintenance and use of the Consultant Roster. 3.45.020 Selection Process — Consultant Roster for contracts up to $100,000; Request for Qualifications for contracts over $100,000' services. A. For contracts up to $100,000, the City may use the Consultant Roster - formal request for qualifications process to select a consultant as set forth in SVMC 3.45.020. choose to only select firms from the llist, as stated under SVMC 3/15.010, based on the information that has been submitted in response to the annual publication. B. For contracts over $100,000, the City shall, at least days prior to contracting for architectural or engineering services, publish a notice stating the specific project or scope of work or announce generally the category or type of professional services required. The notice shall contain the name and address of a City representative who can provide information and details on the request for qualifications or request for proposals. 3.45.030 Procurement of architectural and engineering services. GA. 1. If the City elects to use the Consultant Roster, Tthe City shall review the current statements of qualifications on file with the Ceity Celerk, and shall conduct discussions with one or more firms regarding anticipated concepts and the relative utility of alternative methods for furnishing the requested scope of services and the consultant's ability to provide such services. If the City elects to use a combination of consultants from the Consultant Roster and a request for qualifications process, the City shall review both current statements on file and statements submitted in response to the notice for the request for qualifications. 2. If the City elects to use the request for qualifications process, the City shall review statements submitted in response to the notice as required by SVMC 3.45.020(B) and shall conduct discussions with one or more firms regarding anticipated scope of services and the consultant's ability to provide such services. 3. The City may requestconduct interviews withand presentations from the top three qualified consultantsfirm on non -federally funded projects. The City shall conduct interviews with the top three qualified consultants on federally funded projects. DB. The City shall select the most highly qualified firm to provide the services based upon the criteria set forth below and in the request. The evaluation criteria includcscriteria include, but are not limited to: 1. The ability of the firm to provide the requested services; 2. The scope of work or methods to furnish the services; 3. Qualifications, experience, and references; 4. Performance under previous contracts with the City; and 5. Such other information as deemed relevant. After identification of the most highly qualified firm, the City shall request a fee proposal from the firm and thereafter proceed to negotiate a contract at a price which is determined by the City to be fair and reasonable. In making this determination the City shall evaluate the estimated value of the services, the scope, complexity and nature of the request. If the City is unable to negotiate a fair and reasonable price for services, negotiations shall be terminated and the next most qualifiedanother firm shall be selected in accordance with the above process. C. When the parties have reached a fair and reasonable price, and depending upon the amount of the contract, the City Manager, or when appropriate the City Councilcity council or city manager shall review the and, if they so choose, authorize the contract. for authorization. During the negotiation process, the selected firm shall not contact any member of the Ceity Ceouncil to discuss the fee for services unless otherwise authorized. The City reserves the right to cancel any request for qualifications or proposals. The request for qualifications or proposals shall not be deemed an offer of contract nor shall any firm be entitled to recover any cost associated with preparing a response. 3.45.0340 Emergency and limitation. Nothing contained herein shall limit or prevent the City from procuring architectural or engineering services in the event of an emergency. This Cehapter shall be expressly limited to the professional services identified herein. Chapter 3.46 CONTRACTS FOR SERVICES Sections: 3.46.010 Contracts for services. 3.46.020 Consultant Roster for Non -Architectural and Engineering Services. 3.46.030 Exception to selection processes. SVMC 3.46.010 Contracts for Services. A. This section shall not apply to architectural and engineering services, the procurement of which is governed by SVMC 3.45. B. When entering into a contract for services where the contract is expected to exceed $100,000 or is expected to be effective for more than one year, a competitive selection process shall be used. This process may include a "Request for Qualifications" or "Request for Proposals" process or formal competitive bidding procedures as set forth in SVMC 3.40.010. C. When entering into a contract for services where the contract is not expected to exceed $100,000, is expected to be greater than $7,500, and is not expected to be effective for more than one year, the responsible department shall obtain three or more proposals for the services required, select the lowest responsible proposal, and maintain a record of the process followed. The responsible department may use the Consultant Roster as provided in SVMC 3.46.020 to obtain proposals. When contracting for services which have historically and traditionally been considered professional services, such as attorneys and accountants, the responsible department may, when determined to be in the best interest of the City, obtain such services by negotiation without obtaining three proposals. D. When entering into a contract for services where the contract is not expected to exceed $7,500 and is not expected to be effective for more than one year, the responsible department is encouraged, but is not required, to use a competitive selection process, such as obtaining three proposals as set forth in SVMC 3.46.010(C). If a competitive process is not utilized, the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. SVMC 3.46.020 Consultant Roster for Non -Architectural and Engineering Services Annually, or in response to specific projects or work as set forth above, the City shall encourage, through notice published in a newspaper of general circulation, non -architectural and engineering firms to submit a statement of qualifications which can be used to select firms that provide services to the City. The qualifications shall be maintained by the City Clerk and be available for public inspection. The City Manager shall establish procedures for the maintenance and use of the Consultant Roster for Non -architectural and engineering services. SVMC 3.46.030 Exception to selection processes. If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.46.010, the selection procedures set forth in this chapter may, with prior approval of the City Manager, be waived by the department director, and the contract may be awarded without following the procedures set forth in SVMC 3.46.010. The circumstances giving rise to such waiver shall be documented. Chapter 3.47 PURCHASE OF GOODS Sections: 3.47.010 Purchases of goods greater than $40,000. 3.47.020 Purchases of goods equal to or less than $40,000 and greater than $7,500. 3.47.030 Purchases of goods equal to or less than $7,500. 3.47.040 Exception to purchase processes. SVMC 3.47.010 Purchases of goods greater than $40,000. A. When making a purchase of goods, equipment, or supplies in excess of $40,000, the responsible department shall, at least 13 days prior to purchasing such goods, publish a notice of request for bids stating the written specifications of the goods required and desire of the City to purchase such goods. The notice shall contain the written specifications, the date for submitting bids, and name and address of the City representative who can provide information on the request for bids. Upon receipt of the written bids, the City shall select and purchase the goods from the vendor submitting the lowest bid; provided that such bid meets all specifications provided in the notice. When determining the lowest bid, the City may take into account sales tax revenues received by the City, shipping, and transportation costs. All purchases of goods in the amount of $1,000 or more shall comply with SVMC 3.48.030. B. For purposes of this section, the threshold limits shall only apply to a single good, piece of equipment, or supply item. SVMC 3.47.020 Purchases of goods equal to or less than $40,000 and greater than $7,500. A. When making a purchase of goods, equipment, or supplies equal to or less than $40,000, but greater than $7,500, the responsible department shall obtain three or more quotes for the goods, equipment, or supplies required, select and purchase the goods from the vendor submitting the lowest quote, and maintain a record of the process followed. Alternatively, the department may utilize the Vendor List and process set forth in SVMC 3.48. The department may consider quotes by any vendor with which the City has a vendor account as one of the three required quotes. City staff may take verbal quotes and reduce them to writing. When determining the lowest quote, the City may take into account local sales tax revenues, shipping, and transportation costs. If less than three quotes are received, City staff shall not be required to resubmit for additional quotes, but shall select from the quotes submitted. All purchases of goods in the amount of $1,000 or more shall comply with SVMC 3.48.030. B. For purposes of this section, the threshold limits shall only apply to a single good, piece of equipment, or supply item. SVMC 3.47.030 Purchases of goods equal to or less than $7,500. When purchasing goods, equipment, or supplies in an amount equal to or less than $7,500, the responsible department is encouraged, but is not required, to use a competitive selection process, including obtaining three quotes as set forth in SVMC 3.47.020, or using the Vendor List and process set forth in SVMC 3.48. The responsible department shall contact vendors at least once annually to establish prices on common items that may be purchased in bulk. Such prices may be used when determining the threshold limits for purposes of SVMC 3.47. A City department may aggregate a group of common items so long as each of such items individually are less than $7,500. Any individual items greater than $7,500 shall be bid pursuant to the provisions of SVMC 3.47.010 or SVMC 3.47.020. If a competitive process is not utilized, the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. All purchases of goods in the amount of $1,000 or more shall comply with SVMC 3.48.030. SVMC 3.47.040 Exception to purchase processes. If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.47.010 through SVMC 3.47.030, the purchasing procedures set forth in this chapter may, with prior approval of the City Manager, be waived by the department director, and the purchase may be made without following the procedures set forth in SVMC 3.47.010 through 3.47.030. The circumstances giving rise to such waiver shall be documented. Chapter 3.48 VENDOR LIST AND PURCHASE ORDERS Sections: 3.48.010 Use of Vendor List. 3.48.020 Advertising for Vendor List. 3.48.030 Purchase orders. 3.48.010 Use of Vendor List. A Vendor List is authorized and maintained for the purchase of goods, equipment, and supplies in an amount less than $40,000. The Vendor List shall be maintained by the City Clerk. 3.48.020 Advertising for Vendor List. The Vendor List shall be maintained pursuant to the following procedures. At least annually, the City shall publish in a newspaper of general circulation a notice of the existence of a Vendor List for purchases of goods, equipment, and supplies and solicit the names of vendors who wish to be added to the list. The City Manager shall establish policies and procedures to ensure that a competitive price is established and for purchasing from the Vendor List. 3.48.030 Purchase orders. Purchase orders shall be used for the purchase of goods, equipment, and supplies with a cumulative cost of $1,000 or more per purchase as provided herein. The responsible department shall receive prior written approval from the City Manager for the use of a purchase order to purchase goods, equipment, and supply items in an amount greater than $20,000. All purchase orders shall be accompanied by any applicable vendor bid or quote documentation. No purchase order is required for the purchase of assets or consumable goods when required as part of pre - approved projects, for services, or for utility payments by the City. The City Manager shall establish policies and procedures governing the use of purchase orders. Chapter 3.49 ACQUISITION OF REAL PROPERTY; DISPOSITION OF CITY PROPERTYL - Sections: 3.49.010 Acquisition of Real Property. 3.49.020 Disposition of City Property. 3.49.010 Acquisition of real property. The City shall acquire real property in the following manner A. Acquisition of Real Property. The City Manager is authorized to negotiate the purchase of real property, which shall be based upon a fair -market value appraisal of the property. The City shall not pay more than fair- market value for any real property, except as may be approved by the Washington State Department of Transportation on behalf of the City for road construction projects. Final approval of any purchase of real property shall be obtained from City Council prior to purchase; provided City Council may delegate authority for approval and purchase to the City Manager or City staff. 3.49.020 Disposition of City property. A. The City shall dispose of City property as set forth below. B. Declaring Real and Personal Property Surplus. The decision to declare City property surplus shall rest solely with the City Council. Personal property with a value of less than $10.00 is declared to be of de minimis value and exempt from this provision. 1. Upon a finding by a department director that the City property is surplus to departmental use, the City Manager shall provide notice of potential disposition to other City departments. If any department director desires to acquire and use the proposed surplus City property, the property may be transferred to the requesting department director, or other authorized representative. 2. If no request for the use of proposed surplus property is received from staff, notice and recommendation of the proposal to declare the City property surplus shall be given to the City Council. The City Council may pass a resolution declaring the City property surplus. 3. The City Council may declare City property surplus upon one or more of the following criteria: a. The City has or anticipates no practical, efficient, or appropriate use for the property. Commented [ELI]: Moved from SVMC 3A0 as it is a separate topic and a separate chapter is appropriate. b. The purpose served by the property can be accomplished by use of a better, less costly or more efficient alternative. c. The purpose served by the property no longer exists as determined by a change of policy or practice. d. The property is damaged, inoperable or obsolete and the cost of repairing the same is uneconomical or impractical. C. Sale of Property. Surplus City property shall be sold or disposed of in accordance with the following: 1. Following passage of the resolution declaring City property surplus, the City Manager may proceed to dispose of the same by public auction, bid or other method of sale on terms deemed to be in the best interests of the City. 2. Surplus personal property which is unsellable because of obsolescence, wear and tear, or other reasons may be dismantled, if necessary, and sold as scrap. 3. The City Manager shall secure a market value appraisal of the surplus real property and proceed to sell the same by public auction or through the formal bidding procedures the City Manager deems to be in the best interests of the City. D. Trade of Real Property. Real property may be traded under the following conditions: 1. If the City Manager determines that the disposal of real property declared surplus under this section could realize greater benefit to the City through consideration other than cash, the City Manager may invite prospective purchasers to tender consideration of cash and/or property. Upon receipt of a bid tendering in-kind consideration, and prior to accepting such bid, the City Manager shall make a report setting forth the benefits of such a transaction. This report shall be made to the City Council at a formal meeting and shall be open to the public. 2. Before accepting any bid containing in-kind consideration, an adequate appraisal shall have been made by a qualified independent appraiser. 3. If the City Council finds that the bid containing the in-kind consideration has more value or benefit to the City than any other bid submitted, the City Manager may accept the bid containing in-kind consideration. E. Lease of Public Property. When specifically provided for in the City budget, the City Manager may authorize the lease or sublease of any property, including real property, under such terms and conditions as the City Manager may deem desirable, fair and appropriate, either by use of negotiations or bidding in the best interests of the City. Leases of real property shall not be granted for a period of more than five years, unless otherwise authorized by the City Council. To: From: Re: DRAFT ADVANCE AGENDA as of October 1, 2015; 8:30 a.m. Please note this is a work in progress; items are tentative Council & Staff City Clerk, by direction of City Manager Draft Schedule for Upcoming Council Meetings October 13, 2015, Formal Meeting Format, 6:00 p.m. 1. PUBLIC HEARING: 2015 Budget Amendment — Chelsie Taylor 2. Consent Agenda (claims, payroll, minutes) 3. Second Reading Property Tax Ordinance 15-016 — Chelsie Taylor 4. First Reading Ordinance 15-017 Amending 2015 Budget — Chelsie Taylor 5. First Reading Ordinance 15-018 Adopting 2016 Budget — Chelsie Taylor 6. Motion Consideration: Stormwater Construction Grants — Eric Guth 7. Admin Report: 2016 CDBG Program Project List — Mike Basinger 8. Admin Report: Advance Agenda October 20, 2015, Study Session Format, 6:00 p.m. 1. Library Services Update — Sheree West 2. Draft Marijuana Regulations — Erik Lamb 3. New Website — John Whitehead 4. Advance Agenda [due Mon, Oct 511 (10 minutes) (5 minutes) (10 minutes) (10 minutes) (15 minutes) (10 minutes) (20 minutes) (5 minutes) [*estimated meeting: 85 minutes] [*estimated October 27, 2015, Formal Meeting Format, 6:00 p.m. 1. PUBLIC HEARING: CDBG Program — Mike Basinger 2. Consent Agenda (claims, payroll, minutes) 3. Second Reading Ordinance 15-017 Amending 2015 Budget — Chelsie Taylor 4. Motion Consideration: CDBG Program Project Lists — Mike Basinger 5. Admin Report: Advance Agenda 6. Info Only: Dept. Monthly Reports November 3, 2015 - Meeting Cancelled [*estimated November 10, 2015, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Second Reading Ordinance 15-018 Adopting 2016 Budget — Chelsie Taylor 3. First Reading Proposed Ordinance Adopting Marijuana Regulations — Erik Lamb 4. Admin Report: Lodging Tax Adv.Cmte (LTAC) Recommended Allocations — Mark Calhoun 5. Admin Report: Fee Resolution for 2016 — Chelsie Taylor 6. Admin Report: Advance Agenda [due Mon, Oct 12] (15 minutes) (30 minutes) (30 minutes) (5 minutes) meeting: 80 minutes] [due Mon, Oct 19] (15 minutes) (5 minutes) (10 minutes) (10 minutes) (5 minutes) meeting: 45 minutes] [due Mon, Nov 2] (5 minutes) (10 minutes) (30 minutes) (25 min) (20 minutes) (5 minutes) [*estimated meeting: 95 minutes] November 17, 2015, Study Session Format, 6:00 p.m. ACTION ITEM: 1. Second Reading Proposed Ordinance Adopting Marijuana Regulations — Erik Lamb NON -ACTION ITEM: 2. Advance Agenda November 24, 2015 — no meeting (Thanksgiving week) [due Mon, Nov 9] (20 minutes) (5 minutes) [*estimated meeting: 25 minutes] Draft Advance Agenda 10/1/2015 2:41:37 PM Page 1 of 2 December 1, 2015, Study Session Format, 6:00 p.m. [due Mon, Nov 23] 1. Advance Agenda (5 minutes) December 8, 2015, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Proposed Fee Resolution for 2106 — Chelsie Taylor 3. Motion Consideration: LTAC Allocations —Mark Calhoun 4. Motion Consideration: Councilmember Gothmann to Participate 5. Admin Report: Advance Agenda December 15 2015, Study Session Format, 6:00 p.m. December 22, 2015 — no meeting December 29, 2015, Study Session Format, 6:00 p.m. [due Mon, Nov 30] (5 minutes) (10 minutes) (20 minutes) (5 minutes) (5 minutes) [*estimated meeting: 45 minutes] via Telephone Jan 5 mtg January 5, 2016, Study Session Format, 6:00 p.m. 1. Council Officer Elections for Mayor and Deputy Mayor — Chris Bainbridge *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Apptments (12/29 or 01/12)— 3 Planning Comm. Apptments (12/29 or 01/12) - 2 LTAC Appts: Various Committees (12/29 or 01/12) Avista Electrical Franchise (2nd read Ord 15-011) Bike Helmets Coal/Oil Train Environmental Impact Statement False Alarm Program Hauling Uncovered Loads Historic Preservation [due Mon, Dec 7] [due Mon, Dec 21] [due Mon, Dec 28] (15 minutes) Legislative Agenda Shoreline Adoption Ordinance Sidewalks and Development Sports Facilities Interlocal Agreement SRTMC Interlocal Agreement (prior year) Used Oil Signage Ordinance Weed to end of Control Draft Advance Agenda 10/1/2015 2:41:37 PM Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 6, 2015 Department Director Approval: Item: Check all that apply: ❑ Consent ❑ Old business ❑ New business ❑ Public Hearing ® Information ❑ Admin. Report ❑ Pending Legislation AGENDA ITEM TITLE: Community Development Block Grant Program — Potential CDBG Projects GOVERNING LEGISLATION: Federal Department of Housing and Urban Development (HUD) PREVIOUS COUNCIL ACTION TAKEN: None BACKGROUND: The City of Spokane Valley is a member of the Spokane County Community Development Block Grant (CDBG) Consortium. Each year the Federal Department of Housing and Urban Development provides CDBG entitlement funding to Spokane County, with last year's funding totaling approximately $1.3 million. The City receives a 20% set-aside of Spokane County's annual federal appropriation for infrastructure projects. Spokane Valley's 2015 share will be approximately $270,000 for eligible projects. Although the City has a guaranteed set aside, we must participate in the same application process as all other agencies requesting CDBG funding. To be eligible for CDBG funding, projects must be located in residential, low to moderate income target areas. Proposed projects must also be ranked as a "high priority" in Spokane County's Consolidated Plan, the guiding document for Spokane County's CDBG program. High priority infrastructure projects include water, sewer and street improvements. The CDBG application deadline is November 10, 2015. A public hearing on the proposed projects is scheduled for October 27, 2015. The methodology for selecting projects in the City is to identify sidewalk gaps that make needed pedestrian connections in the CDGB target areas. Proposed projects are consistent with the adopted Bike and Pedestrian Master Program (BPMP). The following project has been identified based on an evaluation of sidewalk needs in CDBG target areas. We are requesting Council to consider this project for Spokane County's CDBG grant program. Proposed CDBG Sidewalk Proiect Approximate Costs Blake Road, east side (8th Avenue to Appleway Trail) $335, 000 OPTIONS: Information Only. RECOMMENDED ACTION OR MOTION: Information Only. BUDGET/FINANCIAL IMPACTS: The City's share of the CDGB grant is expected to cover the total cost of the proposed project. This project is estimated to cost $335,000. STAFF CONTACT: Mike Basinger, Economic Development Coordinator Steve Worley, Senior Capital Projects Engineer ATTACHMENTS: 2016 CDBG Sidewalk Project Map 1 Legend 2016 CDBG Sidewalk Projects ■•■• Proposed CDBG Sidewalk Project BPMP Recommended Sidewalks Projects BPMP Safe Routes to School Appleway Trail Existing Sidewalks Existing Driveways LMI Target Area School 0 250 500 Feet ............ Riverside Sprague School